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11 May 2016
Eagle Butte Man Charged with Three Counts of Assaulting an Intimate PartnerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault by Strangulation, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Darrell Clown, age 48, was indicted on April 13, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 10, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 10, 2015, Clown unlawfully assaulted his spouse with a broomstick and strangled her, resulting in substantial bodily injury.
The charges are merely accusations and Clown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Clown was released on bond pending trial, which has been set for June 21, 2016.
District Man Indicted on Murder and Other Charges in July 4, 2015 Slaying of Kevin SutherlandRead the Press Release
WASHINGTON – Jasper Spires, 19, of Washington, D.C., has been indicted on murder and other charges stemming from the July 4, 2015 slaying of Kevin Sutherland on a Metrorail train, U.S. Attorney Channing D. Phillips announced today. Spires also was indicted on charges involving the robberies of two other passengers and an assault of a fourth victim on the train.
Spires was indicted on May 10, 2016 by a grand jury in the Superior Court of the District of Columbia on charges of first-degree murder while armed (premeditated and felony murder), with aggravating circumstances; assault with a dangerous weapon; armed robbery of a senior citizen; armed robbery, and carrying a weapon outside a home or business.
Spires is to be arraigned on May 13, 2016 at a hearing before the Honorable Robert E. Morin. He faces a maximum of life in prison.
According to the government’s evidence, on July 4, 2015, at about 12:50 p.m., Spires was among people on a Metrorail train approaching the NOMA/Gallaudet University station, in the 200 block of Florida Avenue NE. While on the train, Spires is accused of attempting to rob Mr. Sutherland, 24, and repeatedly and fatally stabbing him. He also is charged with robbing two others on the train, including a senior citizen, and assaulting a fourth passenger.
Following the attacks, Spires allegedly walked off the train and left the station. He was arrested on July 6, 2015 and has been in custody ever since.
At the time of the alleged offenses, Spires was on release in a pending assault case in the Superior Court of the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Phillips commended the work of those investigating the case from the Metropolitan Police Department (MPD) and the Metro Transit Police. He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences and Bode Cellmark Forensics. He acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Criminal Investigators Durand Odom and Mark Crawford; Investigative Analyst Zachary McMenamin; Victim/Witness Advocate Jennifer Clark; Paralegal Specialists Karen Hansen and Kelly Blakeney, and former Paralegal Specialist Vanessa Trent-Valentine. Finally, he commended the work of Assistant U.S. Attorneys Christine Macey and Kathryn Rakoczy, who are investigating and prosecuting the case.
Defendants Sentenced in Money Laundering and Crystal Meth Drug Trafficking OperationRead the Press Release
Possessed 26 firearms and 3,700 rounds of ammunition
BOWLING GREEN, Ky. – The final defendants in a drug trafficking operation were sentenced this week in United States District Court, by United States District Judge Greg N. Stivers, to prison sentences for their roles in a money laundering and methamphetamine distribution network operating from Fresno, California, to Allen County, Kentucky, and included the illegal possession of 26 firearms and more than 3,700 rounds of ammunition, announced United States Attorney John E. Kuhn, Jr.
Bradley Burton Brown 37, of Allen County, and Ashley Dawn Kendall, 25, of Franklin, Kentucky, directed a conspiracy that distributed more than 80 grams of crystal methamphetamine and diverted the proceeds through pre-paid bank cards, with co-defendants Adam Scott Gallagher and Kevin Joseph Willey, between March 2014, and February 26, 2015.
Brown, who was in custody, was sentenced to 120 months in federal prison and a five year term of supervised release and Kendall was taken into custody following her sentencing of 48 months in prison and a three year term of supervised release. There is no parole in the federal system.
Co-defendant Willey was sentenced to 110 months in prison and a five year period of supervised release, and Gallagher, who was living in California, was sentenced to 36 months in prison and a five year term of supervised release. Both were sentenced on March 10, 2016, by Judge Stivers in Bowling Green.
According to the plea agreements, Brown and Kendall would direct Willey to ship packages of crystal methamphetamine from Fresno, CA to Gallagher, located here in the Western District of Kentucky. Once the methamphetamine was received by Gallagher, he would then deliver it to Brown and Kendall to distribute. Brown and Kendall would conceal payments to Willey for the methamphetamine by using prepaid Green Dot Bank cards. They would load the cards with the proceeds from the sale of methamphetamine here in the Western District of Kentucky and then provide Willey with the card's pin number allowing him to obtain the loaded cash in California. According to DEA chemical analysis, the 81.2 grams of methamphetamine recovered from Brown and Kendall on September 17, 2014, tested at over 95 percent purity resulting in a total of 77.7 grams of actual methamphetamine.
Further, on September 17, 2015, Brown, then an unlawful user of a controlled substance, possessed the following firearms: 1. Llama (Gabilondo & Cia), .40 caliber pistol, model XII; 2. High Standard, .22 caliber revolver, model Sentinel; 3. Jennings Firearms, .22 caliber pistol; 4. Keltec, CNC Industries, .380 caliber pistol, model P3A T; 5. Phoenix Anns Co., .25 caliber pistol, model Raven; 6. Marlin Firearms Co., .30-.30 caliber rifle, model336CS; 7. Savage, .243 caliber rifle, model Stevens 200; 8. Browning, 12 gauge shotgun, model Light 12; 9. Ruger, .22 caliber rifle, model 10/22; 10. Marlin Firearms Co., .22 caliber rifle, model Golden 39A; 11. Mossberg, 12 gauge shotgun, model 835 Ulti-Mag; 12. New England Firearms, 12 gauge shotgun, model Pardner; 13. Savage, 20 gauge shotgun, model Stevens 94; 14. Marlin Firearms Co., .22 caliber rifle, model XT-22; 15. Winchester, .30-.30 caliber rifle, model 94 (stolen); 16. Marlin Firearms Co., .22 caliber rifle, model 80; 17. Mossberg, 410 gauge shotgun, model500E; 18. Winchester, .22 caliber rifle, model 190; 19. Winchester, .22 caliber rifle, model190; 20. Winchester, .22 caliber rifle, model 190; 21. Keystone Sporting Arms, .22 caliber rifle, model Cricket; 22. Savage, .22 caliber rifle, model Stevens 87A; 23. Winchester, .22 caliber rifle, model67; 24. Marlin Firearms Co., .22 caliber rifle, model 75C; and 3,707 rounds of assorted ammunition.
Also, on September 17, 2014, Kendall, being an unlawful user of a controlled substance possessed a Romarm/Cugir, .762 rifle, model GP WASR 10/63 and a Marlin Firearms Co., .22 caliber rifle, model 99M1.
Assistant United States Attorney Mac Shannon prosecuted the case. The Federal Bureau of Investigation (FBI) and Barren River Drug Task Force conducted the investigation.
Defendant Charged with Conspiring and Attempting to Provide Material Support to ISILRead the Press Release
Earlier today, a superseding indictment was unsealed in federal court in the Eastern District of New York charging Azizjon Rakhmatov with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and conspiring to use a firearm. The defendant, who is charged with four others whose arrests and indictments have previously been announced, is scheduled to be arraigned at 2:00 p.m. today before United States Magistrate Judge James Orenstein at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; William J. Bratton, Commissioner, New York City Police Department (NYPD); and Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York.
As alleged in the third superseding indictment and other court filings, the investigation began when Abdurasul Juraboev, one of Rakhmatov’s co-conspirators, came to the attention of law enforcement. Juraboev posted on an Uzbek-language website that propagates ISIL’s ideology his offer to engage in an act of martyrdom on U.S. soil on behalf of ISIL, such as killing the President of the United States. The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then to Syria for the purpose of waging violent jihad on behalf of ISIL. Saidakhmetov was arrested on February 25, 2015, at John F. Kennedy International Airport where he was attempting to board a flight to Istanbul, Turkey. Juraboev previously purchased a plane ticket to travel from New York to Istanbul and was scheduled to leave the United States in March 2015. Rakhmatov and three other co-defendants – Abror Habibov, Dilkhayot Kasimov, and Akmal Zakirov – are charged with funding Saidakhmetov’s efforts to join ISIL. Juraboev pleaded guilty on August 14, 2015, to conspiring to provide material support to ISIL.
As alleged in the third superseding indictment and other court filings, Rakhmatov helped to fund Saidakhmetov’s efforts to join ISIL. Specifically, Rakhmatov and Habibov discussed providing their own money to cover Saidakhmetov’s travel expenses and to purchase a firearm for Saidakhmetov once he arrived in Syria. Rakhmatov also agreed to raise money from others to fund Saidakhmetov’s travel. In the week leading up to Saidakhmetov’s scheduled departure, Rakhmatov transferred money into Zakirov’s personal bank account, which funds were intended to facilitate Saidakhmetov’s travel to join ISIL.
If convicted, Rakhmatov faces a maximum sentence of 50 years in prison. The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Peter W. Baldwin are in charge of the prosecution, with assistance provided by Assistant United States Attorney Stephen Reynolds of the United States Attorney’s Office for the District of Connecticut and Trial Attorney Danya Atiyeh of the National Security Division’s Counterterrorism Section.
The Defendant:
AZIZJON RAKHMATOV
Age: 28
Nationality: UzbekiE.D.N.Y. Docket No. 15-CR-95 (S-3)
Crownpoint Man Sentenced to Prison for Federal Statutory Rape ConvictionRead the Press Release
ALBUQUERQUE – Emanuel Yazzie, 23, 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 36 months in prison followed by ten years of supervised release for his sexual abuse of a minor conviction. Yazzie also will be required to register as a sex offender.
Yazzie was arrested on March 5, 2015, on an indictment charging him with sexual abuse of a minor. According to the indictment, Yazzie engaged in a sexual act with the victim who was under 16 years of age in spring of 2014. The indictment alleged that Yazzie committed the crime on the Navajo Indian Reservation within San Juan County, N.M. On Dec. 15, 2015, Yazzie entered a guilty plea to the indictment.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Cresson Man Charged with Making False Statements on Loan ApplicationsRead the Press Release
JOHNSTOWN, Pa. – On May 11, 2016, a Cambria County resident was indicted by a federal grand jury in Johnstown on charges of making false statements on loan applications, United States Attorney David J. Hickton announced today.
The three-count indictment named Justin M. Hickox, 28, of Cresson, Pa., as the sole defendant.
According to the indictment presented to the court, on Sept. 4, Sept. 18 and Oct. 23, 2014, Hickox knowingly made false statements in applications for vehicle and personal loans from G.A.P. Federal Credit Union and Your Choice Federal Credit Union.
The law provides for a maximum total sentence of 90 years in prison, a fine of $3,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Corpus Man Indicted in Undercover Firearms and Meth OperationRead the Press Release
CORPUS CHRISTI, Texas – A federal grand jury has returned an indictment today charging a local man with possession with the intent to distribute methamphetamine and making a false statement on a firearms purchasing form, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Robert Elder of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Authorities had charged Kevin Joseph Pacacha, 53, of Corpus Christi, on April 14, 2016, following his arrest the day prior. He appeared in federal court April 19, 2016, at which time the court heard that law enforcement had been investigating Pacacha since 2013. Law enforcement believed he had been dealing firearms without a license. Agents met with Pacacha to notify him that he needed to obtain a federal firearms license if he wished to deal in firearms.
The government also detailed the undercover investigation that commenced following the arrest of a firearms trafficker in Brownsville in 2015. According to testimony presented in court, the undercover ATF agent allegedly made five separate purchases involving 13 firearms from Pacacha. At the time of the final sale, Pacacha also allegedly requested to purchase a large quantity of methamphetamine. According to court records, the undercover agent and Pacacha ultimately agreed to a deal in which Pacacha would provide four DPMS rifles and one LWRC rifle to the undercover officer in exchange for a half pound of crystal methamphetamine and $2,000 in cash. Following the exchange, agents arrested Pacacha.
“The tenacity and courage of the undercover agent in pursuing a suspect who seemed to have no regard for the ultimate destination of these guns highlights exemplary actions by ATF's finest,” said Elder.
If convicted of the methamphetamine charge, Pacacha faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine. The firearms charge carries and additional five-year-maximum sentence, upon conviction.
ATF investigated the case along with Texas Department of Public Safety, Corpus Christi Police Department Gang Unit, Border Patrol and the U.S. Marshals Service.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Connecticut Man Pleads Guilty to Tobacco Tax FraudRead the Press Release
BOSTON – A West Hartford, Conn. man pleaded guilty in U.S. District Court in Springfield today in connection with evading taxes on the sale of tobacco products.
Sukhdev Singh, 63, pleaded guilty before U.S. District Court Judge Mark G. Mastroianni to one count of conspiracy, three counts of wire fraud and one count of money laundering. The sentencing hearing has not yet been scheduled.
From 2008 to 2012, Singh worked with several co-conspirators to evade payment of tobacco excise tax by a wholesale business in Berlin, Conn. to the State of Connecticut. To achieve this, co-conspirators sold smokeless tobacco and cigars to convenience stores and gas stations from a “no-tax” computer and a “tax” computer, and then filed false tobacco tax returns with Connecticut tax authorities.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charges of wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office.
Clarksburg, WV man sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randy Joe Jones, 33, of Clarksburg, was sentenced today to 30 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Jones sold heroin near Harrison Street Park in Harrison County, West Virginia. He pled guilty in January 2016 to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.”
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Clairton Man Sentenced to 12 Years in Prison for Sex Trafficking a ChildRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 12 years imprisonment, followed by 5 years supervised release, on a charge of Sex Trafficking of a Child, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Robert Allen Middlebrook, 41, of Clairton, Pennsylvania.
According to information presented to the court, the court was advised that in February 2015, Middlebrook knowingly recruited, enticed, harbored, transported, provided and obtained female minors to engage in commercial sex acts.
Assistant United States Attorneys Jessica Lieber Smolar and Katherine A. King prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for conducting the investigation leading to the successful prosecution of Middlebrook.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Chinese Citizen Admits Selling $1.5 Million in Counterfeit Cell Phone PartsRead the Press Release
Assistant U.S. Attorneys Nicholas W. Pilchak (619) 546-9709 and Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – May 11, 2016
SAN DIEGO – A Chinese citizen pleaded guilty today to selling at least $1.5 million of counterfeit cell phone parts to an Imperial County business as part of a years-long conspiracy.
Hongwei “Nick” Du, a Chinese national, pleaded guilty today before U.S. District Judge M. James Lorenz to conspiring to traffic in counterfeit goods and related money laundering charges. According to the plea agreement, Du sold at least $1.5 million worth of counterfeit Chinese cell phone parts from Shenzhen to Spanish national Octavio Cesar Sana, in order to supply Sana’s former business, “Flexqueen.com.”
Du was arrested on February 3, 2015 at the Imperial Valley Airport. Du had traveled to the United States from Shenzhen in order to meet with Sana and others to coordinate further counterfeit trafficking ventures. Du arrived for the meeting bearing samples of counterfeit Apple iPhone components. According to emails that Du had sent before his arrival, he brought the iPhone samples despite concerns about clearing customs because they were “copy ones” with “apple logo.”
The investigation leading to Du and Sana’s arrests was spearheaded by Homeland Security Investigations (HSI) and the Internal Revenue Service, Criminal Investigations. HSI executed a series of nationwide searches in connection with the arrests, including those in Tampa, Florida; Brownsville, Texas; Boston, Massachusetts; Atlanta, Georgia; Pittsburgh, Pennsylvania; Nashville, Tennessee; and Orange, San Diego and Imperial counties in California. These searches resulted in the seizure of more than 55,000 counterfeit items, and additional criminal charges in several jurisdictions.
According to the plea agreement, since 2007, Sana’s businesses sold approximately $6.5 million in cell phone parts and accessories to businesses and consumers throughout the United States. In turn, Sana paid approximately $3.1 million to Du, his primary Chinese supplier. Du admitted that roughly half of those parts were counterfeit. Sana pled guilty to similar charges in September 2015.
Du also admitted in his plea agreement that he and his co-conspirators used extensive methods to frustrate the ability of U.S. Customs and Border Protection to detect, inspect and intercept their imported counterfeit goods, such as shipping merchandise with “protective stickers” strategically placed to obscure the products’ infringing trademarks. The plea agreement also explains that Du and Sana utilized a dedicated shipping channel for branded goods to avoid attention from Chinese customs officials.
As part of his plea agreement, Du has agreed to forfeit $1.5 million.
“Trafficking in counterfeit goods threatens consumers and the marketplace,” said U.S. Attorney Laura E. Duffy. “Customers buying trademarked products for their personal devices should be able to have confidence that the products aren’t sophisticated forgeries.” U.S. Attorney Duffy noted that the counterfeit goods business is booming; U.S. Customs and Border Protection (CBP) reported that in 2014 alone, it intercepted an estimated $1.2 billion of counterfeit goods in more than 23,000 seizures.
Duffy commended the close coordination between the investigating agencies—the Department of Homeland Security, Homeland Security Investigations; the Internal Revenue Service, Criminal Investigations; and the U.S. Postal Inspection Service—during the lengthy investigation of this case. The Department of Justice’s Office of International Affairs also provided invaluable assistance.
“This investigation underscores HSI’s commitment to pursuing transnational criminals seeking to exploit the U.S. economy,” said Dave Shaw, special agent in charge for ICE HSI in San Diego. “I commend the work by HSI and our federal law enforcement partners for their outstanding efforts that uncovered a counterfeit scheme which threatened the U.S. marketplace and defrauded consumers.”
“As previously alleged, the defendants ran a sophisticated multi-million dollar counterfeit and money laundering scheme whose reach stretched from China to the Imperial Valley. Counterfeit cellphone parts imported from China were sold to the American consumer with U.S. Dollars going back to China in an effort to promote their counterfeit goods trafficking venture,” stated acting Special Agent in Charge Anthony J. Orlando with IRS Criminal Investigation. “Today’s plea demonstrates that IRS CI will remain an integral part of the U.S. Government’s commitment to maintaining the integrity of the international financial system.”
Du will appear for sentencing on August 15 at 9 a.m. before Judge Lorenz. Octavio Sana is set to be sentenced by Judge Lorenz on May 23, 2016.
DEFENDANT Case No. 16-cr-00930
Hongwei Du 33 years old Shenzhen, People’s Republic of China
CHARGES
Conspiracy to Traffic in Counterfeit Goods - 18 U.S.C. § 371
Maximum penalty: 5 years’ imprisonment and $250,000 fine
Money Laundering Conspiracy – 18 U.S.C. § 1956(h)
Maximum penalty: 20 years’ imprisonment and $500,000 fine
RELATED DEFENDANTS
Case No. 15-cr-612-L
Angela Rose Vela 36 years old El Centro, CA
Case No. 15-cr-2316-L
Octavio Cesar Sana 42 years old El Centro, CA
AGENCIES
Homeland Security Investigations
Internal Revenue Service – Criminal Investigations
U.S. Postal Inspection Service
Child Pornography Charges Filed Against Philadelphia ManRead the Press Release
PHILADELPHIA – An information was filed today charging Ulric Miller, 34, of Philadelphia, PA, with possession of child pornography, announced United States Attorney Zane David Memeger. The indictment charges Miller with one count of possession of child pornography on July 17, 2015.
If convicted the defendant faces a maximum statutory sentence of 20 years in prison, a possible fine, forfeiture, restitution, at least five years of supervised release, a special assessment of $100 and, if not indigent, an additional $5,000.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Charlestown Man Sentenced on Drug Trafficking, Firearms ChargesRead the Press Release
PROVIDENCE, R.I. – Jason D. Smith, 32, of Charlestown, R.I., was sentenced today to 72 months in federal prison on drug and firearms charges. Smith was arrested in September 2015 by members of the Rhode Island State Police High Intensity Drug Trafficking Area (HIDTA) Task Force after court authorized searches of Smith’s residence and a storage unit rented by Smith resulted in the seizure of five loaded handguns, a shotgun, and significant quantities of heroin, cocaine, ketamine, loose marijuana, mature marijuana plants, and oxycodone and Adderall pills. Law enforcement also discovered two fully functioning marijuana grows.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Jason Smith to serve three years supervised release upon completion of his prison term. Smith pleaded guilty on December 4, 2015, to possession with intent to distribute heroin, and possession of firearms and ammunition in furtherance of a drug trafficking crime.
Smith’s sentence is announced by United States Attorney Peter F. Neronha, Rhode Island State Police Superintendent Colonel Steven G. O’Donnell, Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF, and Charlestown Police Chief Jeffrey S. Allen.
According to information presented to the court, as a result of information developed by the HIDTA Task Force during an investigation into Smith’s drug trafficking activities, law enforcement obtained and executed court authorized search warrants at Smith’s residence and a storage unit rented by Smith.
From Smith’s residence, which he shared with his girlfriend and a young child, and which was equipped with several exterior surveillance cameras, law enforcement seized five loaded handguns, a shotgun, several extended capacity magazines of ammunition, 383 grams of heroin – some mixed with fentanyl and ketamine, 101 grams of ketamine, 52 grams of cocaine, 227 oxycodone pills, 27 Adderall pills, more than 10 kilograms of loose marijuana, and a fully functioning marijuana grow which contained 63 mature marijuana plants. Law enforcement also seized numerous items used in the packaging and distribution of drugs.
Inside a storage unit rented by Smith, law enforcement discovered a fully functioning marijuana grow with 29 mature marijuana plants. Law enforcement also seized an expired Rhode Island Medical Marijuana Caregiver Card with Smith’s picture and a valid Rhode Island Medical Marijuana Patient Card with Smith’s picture.
Smith has been detained since his arrest.
The case was prosecuted by Assistant U.S. Attorney Adi Goldstein.
Agents from ATF assisted the HIDTA Task Force in the investigation of this matter. The HIDTA Task Force is managed by the Rhode Island State Police and comprised of members from Providence Police, Pawtucket Police, Johnston Police, Central Falls Police, North Providence Police, West Warwick Police, United States Bureau of Alcohol, Tobacco and Firearms (ATF), United States Drug Enforcement Administration (DEA), and the United States Bureau of Immigration and Customs Enforcement-Homeland Security Investigations (HSI).
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Cartel Connected Kidnapper Sentenced to 56 YearsRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Ruben Ceja-Rangel, age 59, a Mexican national whose last known residence was Groveland, Florida, was sentenced late yesterday in federal court in Columbia, South Carolina. Ceja-Rangel was convicted October 23, 2015, of 7 charges related to the armed abduction of a St. Mathews man that occurred in July of 2014.
United States District Judge J. Michelle Childs of Columbia, South Carolina, sentenced Ceja-Rangel to a term of imprisonment of 677 months (293 months on kidnapping and related charges, 7 years consecutive on use of a firearm in furtherance of kidnapping and 25 years consecutive on a second use of a firearm in furtherance of kidnapping), followed by a term of 5 years supervised release.
Evidence presented during the trial established that Ruben Ceja-Rangel (age 58) traveled from his home in Groveland, Florida, in early June or July of 2014, for the purpose of conspiring with Luis Castro-Villeda (24) and Juan Fuentes-Morales (age 27) to kidnap the victim from St. Mathews, South Carolina. During the trial evidence was presented that the victim was forcibly taken from his truck in the early morning hours of July 14, 2014 at gunpoint by Ceja-Rangel. Ceja-Rangel and another co-defendant then blindfolded and transported the victim to a residence near Garland, NC, where the victim was held for several hours at gunpoint. The victim testified that at one point, he attempted to escape and Juan Fuentes-Morales struck him and pointed a .25 caliber gun at the victim's head. Evidence presented proved that around 8:00 pm, the victim was moved from Garland to a residence located near Rosoboro, NC on Highway 210.
While held at the second location, the victim was blindfolded and chained to a workout bench, where he was made to lay on the floor from July 9, 2014, until his rescue by the FBI on July 15, 2014. In the early morning hours of July 15, 2014, a compliment of the Charlotte, NC FBI SWAT Team executed a search warrant at the Highway 210 residence near Roseboro. When the SWAT team made entry, they located the victim chained up and blindfolded on the floor. Ruben Ceja-Rangel attempted to run out of the back of the residence but he was quickly detained by FBI Charlotte SWAT operators.
Prior to locating the victim, Operators with the FBI's Hostage Rescue Team (HRT) executed a search warrant at 5363 Old Fayetteville Road, Garland NC. During the execution of this search warrant, Agents located a cellular phone that Juan Fuentes-Morales used during the kidnapping to communicate with individuals in Mexico who were demanding a ransom for the victim's return. Agents also located a .25 caliber pistol that Fuentes-Morales had used to hold the victim during his initial abduction on July 9, 2014.
Evidence presented at trial proved that the victim's father owed a drug debt to members of a Mexican Drug Trafficking organization, or cartel, related to the father's inability to sell over 200 pounds of marijuana. Jurors heard multiple phone calls that were recorded by FBI hostage negotiators, wherein the Mexican drug traffickers threatened to gouge out the victim's eyes and ultimately kill him if the father did not pay the ransom.
Ceja-Rangel was convicted of conspiracy to commit kidnapping, substantive kidnapping, hostage taking, brandishing firearms in furtherance of crimes of violence, lying the FBI, and possession of a firearm by a convicted felon. Evidence at the sentencing hearing also established that Ceja-Rangel was previously convicted of Importation of Marijuana in United States District Court in the Southern District of Texas.
Mr. Nettles stated that “this case is the perfect example of how drug trafficking leads to violent crime and brings the real life violence associated with Mexican Drug Trafficking Organizations to the United States. The continued commitment to the war on drugs is the only way to ensure that Mexican Drug Trafficking Organizations know that the United States Government and the FBI will do whatever it takes to ensure that lives are not lost as a result of drug trafficking and the violence associated with it.”
The case was initiated by the Calhoun County Sheriff’s Department and was investigated by agents of the Federal Bureau of Investigation from the Columbia Field Division and the Charlotte Field Division. Assistant United States Attorney JD Rowell of the Columbia office is prosecuting the case.
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Business Owner Pleads Guilty to Wire Fraud for Stealing $809,205.43 from VictimsRead the Press Release
LOUISVILLE, Ky. – Mark Allen Hartley, the owner of Patriot Computers, a Virginia corporation, entered pleas of guilty today, in United States District Court, before Chief Judge Joseph H. McKinley Jr., to multiple wire fraud charges related to the theft of $809,205.43 from 434 victims, announced United States Attorney John E. Kuhn, Jr.
According to the four count indictment and facts admitted today during his guilty plea, from December 1, 2012, through April 14, 2014, Hartley, age 55, devised a scheme to defraud First Citizens Bank and its customers. At the time, Hartley operated a business called Spartan Group Inc., dba Patriot Computers. Patriot Computers sold computer equipment to its customers on installment sales contracts. Customers of Patriot Computers agreed to have specified amounts of money taken from their paychecks on a regular basis until their purchases were paid in full. These customers completed payment authorization forms for these payment arrangements, and then Patriot Computers submitted these forms to First Citizens Bank in Hardin County, Kentucky. First Citizens Bank, through its bill payment service, would then transfer the payments from each customer’s paycheck to Patriot Computers’ account at Wells Fargo Bank until the customer’s contract with Patriot Computers was paid in full.
As part of the scheme and artifice to defraud, Hartley created fraudulent payment authorization forms and transmitted those, by e-mail, to First Citizens Bank. This caused the bank to transfer unauthorized payments from victims’ paychecks to an account at Wells Fargo Bank, controlled by Hartley. These unauthorized payments totaled approximately $809,205.43.
In entering his pleas of guilty, Hartley agreed that the United States could put Patriot Computers’ accounts receivable into receivership, with collections from those accounts being directed to pay restitution to victims.
Hartley, a Florida resident, faces a sentence of up to 80 years in prison and fines of up to $1,000,000, along with up to 3 years of supervised release.
This case is being prosecuted by Assistant United States Attorneys Jason Snyder and Jessica R.C. Malloy and is being investigated by the Federal Bureau of Investigation (FBI).
Buffalo Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ricky Lee Pyzikiewicz, 29, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute cocaine and being a felon in possession of a firearm, was sentenced to 37 months in prison by U.S. District Judge Elizabeth Wolford.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on November 15, 2010, law enforcement officers searched the defendant’s residence on Maurice Street in Buffalo. Officers seized baggies later determined to contain cocaine and marijuana as well as a rifle and ammunition.
The search was part of an ongoing criminal investigation into narcotics trafficking by Pyzikiewicz and co-defendant Ashley Marie Gnocchini, 29, of Cheektowaga, NY. During the morning hours of November 15, 2010, officers had set up an undercover purchase with the defendants. As Pyzikiewicz and Gnocchini drove to the area of Milestrip Road and McKinley Parkway in Hamburg, NY, Orchard Park, NY police officers pulled over the car the two were riding in. Pyzikiewicz appeared to hide something under his seat. A Hamburg Police Department canine unit responded to the scene, and alerted for the presence of narcotics. A subsequent search was conducted and quantities of cocaine were recovered.
Gnocchini was convicted of conspiracy to possess with intent to distribute cocaine and was sentenced to 15 months in prison.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction Special Agent in Charge Delano A. Reid, the Orchard Park Police Department, under the direction of Chief Mark Pacholec, and the Hamburg Police Department, under the direction of Chief Gregory Wickett.Buffalo Man Sentenced for Escaping from Halfway HouseRead 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 Michael Bobbitt, 28, of Buffalo, NY, who was convicted of escape from a halfway house, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that the defendant was in the custody of the Bureau of Prisons and staying at the Buffalo Halfway House because of a prior racketeering conviction. On August 13, 2015, Bobbitt fled from the halfway house. On August 19, 2015, the United States Marshal Service located and arrested the defendant.
The sentencing is the result of an investigation by the United States Marshal Service, under the direction of Charles Salina.
Browning Man Convicted of AssaultRead the Press Release
GREAT FALLS – Yesterday, Seivert Daydrill Running Crane, 30, of Browning, was convicted of assault resulting in serious bodily injury. Running Crane was convicted by a Great Falls jury following a two-day trial. U.S. District Court Judge Brian Morris presided over the trial. Sentencing has been set for August 18, 2016.
Eye witnesses testified that on May 29, 2015, the victim in the case was in a fight with Running Crane’s co-defendant. Running Crane joined the altercation by punching the victim in the back of the head causing the victim to lose consciousness and fall to the ground in a sitting position. According to one witness, Running Crane then kicked the victim in the face “like a football.” Multiple witnesses testified that after the victim fell to the ground, both Running Crane and his co-defendant continued to punch and kick the victim in the head.
The victim was transported to the emergency room in Browning, Montana and then was life-flighted to Kalispell for additional treatment. The victim suffered bleeding inside his brain, facial contusions and lacerations, and a hemorrhage in his left eye. The victim remained in the ICU for two days. The victim testified at trial that he continues to suffer from dizzy spells and flashes on the sides of his eyes.
This case was investigated by the Blackfeet Law Enforcement and the FBI. The case was prosecuted by Assistant United States Attorneys Danna Jackson and Jeffrey Starnes.
Bay Area Fraudster Convicted of Duping Investers Out of More Than $3 MillionRead the Press Release
SAN FRANCISCO- A federal jury convicted Marc Christopher Harmon today of conspiracy to commit wire fraud and five counts of wire fraud, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Acting Special Agent in Charge Bertram Fairries, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
Harmon, 43, of San Leandro, Calif., was charged, along with co-conspirator Jason George Rivera, Jr., 37, of Danville, Calif., in a scheme to defraud multiple investors of more than $3 million between October 2008 and January 2011. In an indictment filed July 3, 2014, Harmon and Rivera were accused of using a Nevada corporation known as Executive Members Management Group, or EMMG, as a vehicle to defraud investors. The scheme involved promises that EMMG would purchase or trade collateralized mortgage obligations (CMOs) using funds provided by the investors, or would invest their funds in other lucrative transactions. Rivera and Harmon convinced victims to invest substantial sums of money, by promising, among other things, high rates of returns by participating in exclusive trading markets overseas and funding short-term loans for banks.
The evidence at trial demonstrated that Harmon’s role in the conspiracy was to recruit investors to EMMG. Harmon made many false representations to induce the investors to invest. These false representations included representations about Rivera and Harmon’s investment expertise, connections, history, and success; about the historical returns generated by the particular investment programs for which investments were being solicited; about future returns expected, promised, or guaranteed by these transactions; about the “blocked” nature of the transactions, wherein their funds would be held in something like an escrow account, would never leave EMMG’s account, and thus would be entirely safe; about the short time periods for payout (days, weeks, or a month, generally); and about how Rivera and Harmon would only be paid after the transactions returned a profit for the customers. In reality, there were no actual investment programs overseas, and both defendants simply spent investors’ money as it came in, and then lied about it for months and months afterwards.
On July 3, 2014, a grand jury returned an indictment charging defendants with eight counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. Rivera also was charged with two counts of tax evasion, in violation of 26 U.S.C. § 7201.
On July 29, 2015, Rivera pleaded guilty to the conspiracy to commit wire fraud charge and the two tax evasion counts. The government dismissed two counts of fraud, as it related to Harmon and the jury convicted Harmon of each of the remaining charges. Harmon now faces a maximum statutory penalty of 20 years in prison, a fine of $250,000, forfeiture, and restitution for the conspiracy charge and for each of the five wire fraud counts. However, any sentence following conviction would be imposed by the Court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The guilty verdict followed a one-week jury trial before the Honorable Richard Seeborg, U.S. District Judge. The trial got off to a shaky start when Harmon failed to appear on the first day and Judge Seeborg issued a warrant for his arrest. FBI and IRS agents were prepared for his possible failure to appear, and Harmon was arrested and in custody within 20 minutes of Judge Seeborg issuing the arrest warrant. Harmon remains in custody pending his sentencing scheduled for August 23, 2016, before Judge Seeborg.
Assistant U.S. Attorneys Benjamin Kingsley and Shailika Kotiya are prosecuting the case with the assistance of Jessica Meegan. The prosecution is the result of an investigation by the FBI and IRS, Criminal Investigation.
Australian Extradited to the United States Pleds Guilty to Failure to Surrender for Prison SentenceRead the Press Release
Jeremiah Dorai Jacob, 36, an Australian citizen, formerly from Columbia, Illinois, pled guilty to Failure to Surrender for Service of a Sentence, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. The offense carries a maximum sentence of up to ten years imprisonment; 3 years supervised release, a $250,000 fine, and a $100 mandatory special assessment. Sentencing is scheduled for September 9, 2016.
Jeremiah Jacob had previously been prosecuted and on August 31, 2012, he was sentenced to serve fourteen months imprisonment in the Bureau of Prisons for the offense of failure to register a security and was ordered to pay restitution to victims of his offense in the amount of $241,630.95. On September 13, 2012, the defendant requested permission to travel to Australia to work to earn additional funds to pay restitution to the victims of his offense. On September 13, 2012, the District Court granted the defendant's motion to travel to Australia but ordered the defendant to return to the United States of America prior to March 15, 2013 to begin serving his federal prison sentence. He failed to return to the United States to serve his prison sentence. Jeremiah Dorai Jacob was arrested in Australia on June 19, 2014, pursuant to the United States' request for extradition and has been detained pending these proceedings.
The prosecution is the result of an investigation conducted by the Postal Inspection Service and the U.S. Marshals Service. The prosecution was being handled by Assistant U.S. Attorney Norman R. Smith.
Ansonia Man Sentenced to 57 Months in Federal Prison for Trafficking Prescription NarcoticsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES COSTANZO, 38, of Ansonia, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 57 months of imprisonment, followed by three years of supervised release, for trafficking prescription narcotics. He also was ordered to pay a $5,000 fine.
According to court documents and statements made in court, in May 2013, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department initiated an investigation into COSTANZO, who had been identified as an illegal distributor of narcotic pharmaceuticals. The investigation, which included multiple controlled purchases of oxycodone and the use of electronic surveillance, revealed that COSTANZO sold prescription narcotics to numerous customers from his Dwight Street residence. The investigation further revealed that Brian Earl of North Haven supplied COSTANZO with large quantities of oxycodone and other prescription narcotics, and also sold drugs to his own customers.
COSTANZO and Earl were arrested on January 23, 2014. At the time of his arrest, COSTANZO possessed a 9mm handgun that was loaded with hollow-point ammunition, and $439 in cash. A subsequent search of his residence revealed approximately 600 oxycodone pills, four firearms, ammunition, approximately $5,500 in cash, and more than 50 stored-value cards.
On February 27, 2015, COSTANZO pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone, and one count of knowingly engaging in a monetary transaction involving criminally derived property.
When he pleaded guilty, COSTANZO admitted that he used more than $72,000 in funds derived from his illegal drug enterprise to purchase a residence located at 85 Dwight Street.
COSTANZO has forfeited the Dwight Street property, as well as a residence located at 21 Winchester Street in Waterbury, a 2005 Mercedes Benz ML350, a 2000 Ford F150, and approximately $42,613.
COSTANZO has been detained since his arrest.
Brian Earl pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone. On July 17, 2015, he was sentenced to 37 months of imprisonment.
This investigation was conducted by the DEA’s New Haven Tactical Diversion Squad, the Ansonia Police Department and the Fairfield Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
The case was prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.
Altoona Man Charged with Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, Pa. was indicted on May 11, 2016, by a federal grand jury in Johnstown on a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
The indictment named Timothy Hufford, 55, as the sole defendant.
According to the indictment presented to the court, on August 18, 2015, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, Pennsylvania State Police and Altoona 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.
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 better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
50 Members of La Asociación Ñeta Prison Gang Indicted for Violating the RICO Act in Puerto RicoRead the Press Release
A federal indictment was unsealed today in the District of Puerto Rico charging 50 members of La Asociación ÑETA with racketeering, drug trafficking and murder, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The defendants include the leadership of the enterprise, its drug trafficking network and members who perpetrated murders in furtherance of the enterprise. This prosecution is the product of an FBI investigation into the drug trafficking and violent activities perpetrated by members of the gang known as La Asociación ÑETA.
According to the indictment, the defendants are charged with being part of La Asociación ÑETA, a prison gang that operates in the prisons of the Puerto Rico Department of Corrections and Rehabilitation (PRDCR). La Asociación ÑETA is a criminal organization that engages in drug trafficking and murder. The main purpose of the organization is to make money. Inmates originally formed La Asociación ÑETA as a means to advocate for their rights within the PRDCR. The enterprise, however, evolved into a criminal organization that engaged in drug trafficking and murder within the prisons of the PRDCR. The enterprise makes money by introducing multi-kilogram quantities of drugs into the PRDCR prisons for profit and by engaging in murders for hire.
The indictment alleges that members and associates of La Asociación ÑETA introduced and distributed multi-kilograms of cocaine, marijuana and heroin into the prisons of the PRDCR. They were able to introduce this contraband into the prisons with the help of corrupt PRDCR Correctional Officers, civilians who worked inside of the prison system, people who visited inmates and persons who - from outside the prisons - threw drugs into the facilities ,known as pitcheos, which were caught by members of the enterprise. Members of the enterprise and their associates also introduced cellular telephones into the prisons and charged a fee to other inmates for using the same. Members of the enterprise would use cellular phones to engage in drug trafficking and murder.
Specifically, the indictment alleges that people who were not incarcerated would hire La Asociación ÑETA to kill persons who were serving time in the prisons of the PRDCR. La Asociación ÑETA participated in the murders for pecuniary gain. Murders perpetrated by the organization include those of Mario Montañez-Gómez aka Emme on Aug. 27, 2014, and Alexis Rodríguez-Rodríguez aka Alexis El Loco on Nov. 6, 2014.
The defendants are: Avelino Millán-Machuca aka Papito Machuca/El Fuerte/Viejo/Gordo; Fernando García-Marquez aka Fernan Sandwich/Emparedado/ Fernan/Carlos Vega; Cynthia González-Landrau aka La Cana/La Princesa/La Presidenta; Rolando Millán-Machuca aka Rolo; Alex Piñero-Sotomayor aka Cigüeña/Pájaro; Miguel Rivera-Calcaño aka Guelo/ Kikirimiau; Roberto Casado-Berríos aka Bobe/Bobel; Iván Ayala-Hernández aka Bambani/Bambo; Giordano Santana-Meléndez aka Viejo Ten; Carlos Báez-Figueroa aka Carlitos Guaynabo; José Trinidad-Jorge aka Trini; Ángel Bermúdez-Cartagena aka Apache/El Doctor; José Cintrón-Mojica aka Jowito; Victor Solano-Moreta aka Caballo; José Castoire-Sánchez; Luis Ayuso-Walker aka Buringo; Juan Lozada-Delgado aka Chino San Lorenzo; Aníbal Miranda-Montañez aka Jowy; Freddie Sánchez-Martínez aka Casco; Ángel Cruz-Barrientos aka Diego/Cloche; Alex Miguel Cruz-Santos aka Alex Cuquito; José J. Folch-Colón aka Joel Folch/Gordo Folch; Billy Andino-De Jesús aka Billy Cupey/Billy El Calvo; Luis Rojas-Llanos aka Cachorro/Kchorro; Juan J. Claudio-Morales aka Claudio Canales/Claudio El Gordo; Eduardo Rosario-Orangel aka Barba/Cholón; George Torres-Rodríguez aka Gordo Comerio; Luis H. Quiñonez-Santiago aka Hiram; Augusto Christopher-Lind aka Bengie Loiza; José L. Nieves-Torres; Luis D. Ramos-Báez aka Danny Power; Orlando Ruiz-Acevedo aka Gordo Ponce; Raul D. Rosario-Maldonado aka Davi/Davo; Juan R. Cruz-Santana aka Roldán; José Marrero-Figueroa aka Tito San José; Ramón Morales-Sáez aka Moncho/Monchi; Carlos Santiago-Rivera aka Black/Blacky/El Negro; David González-De León aka Bebe Cupey; José Díaz-López aka Culo De Pollo; Osvaldo Torres-Santiago aka Bombilla/Baldo/Baldito; José Velázquez-Maldonado aka Batata; Roberto Martínez-Rivera aka Matatan; José Sánchez-Laureano aka Veterano; José González-Gerena aka Perpetua; Francisco Torres-Rodríguez aka Kino; Andrés Del Valle-Ortega aka Randy/Andy Caimito; José R. Andino-Morales aka Gladiola; Jesús P. O’neill-Gómez aka Pastor; Ángel I. Díaz-Santiago; and Pedro Fontanez-Pérez.
Assistant U.S. Attorney Victor O. Acevedo-Hernández for the District of Puerto Rico is in charge of the prosecution of the case. The FBI and the Puerto Rico Department of Corrections collaborated during the investigation.
“I want to acknowledge the dedication and commitment of the FBI and the Department of Corrections agents and officials who participated in this substantial investigation which resulted in today’s arrests,” said U.S. Attorney Rodríguez-Vélez. “This success of this operation shows the continued teamwork of federal law enforcement and our state and local partners to reduce gang violence inside the prisons in Puerto Rico. The U.S. Attorney’s Office will zealously prosecute these defendants and bring them to justice.”
“Even prison walls were not enough to stop the brazen acts of this violent gang,” said Special Agent in Charge Douglas A. Leff of the FBI’s San Juan Division. “In reality, their conduct is more accurately described as that of an international mafia than a prison gang. Their network reached throughout Puerto Rico and the continental United States. This enabled them to order hits on rival gang members, corrupt two sworn officers and to move large quantities of drugs and other contraband, effectively turning their prison into a gang-controlled housing project. The dismantlement of this criminal enterprise was achieved through the tireless investigation of our case agents and partners with the U.S. Attorney’s Office, U.S. Marshals Service, Puerto Rico Department of Corrections and Rehabilitation and the Police of Puerto Rico.”
If convicted, the defendants face 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.
50 Members of La Asociacion Ñeta Prison Gang Indicted for Violating the RICO Act in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – A federal indictment was unsealed today in the District of Puerto Rico charging fifty (50) members of La Asociación ÑETA with racketeering, drug trafficking, and murder, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. The defendants include the leadership of the enterprise, its drug trafficking network, and members who perpetrated murders in furtherance of the enterprise. This prosecution is the product of an FBI investigation into the drug trafficking and violent activities perpetrated by members of the gang known as La Asociación ÑETA.
Pursuant to the indictment, the defendants are charged with being part of La Asociación ÑETA, a prison gang that operates in the prisons of the Puerto Rico Department of Corrections and Rehabilitation (“PRDCR”). La Asociación ÑETA is a criminal organization that engages in drug trafficking and murder. The main purpose of the organization is to make money. Inmates originally formed La Asociación ÑETA as a means to advocate for their rights within the PRDCR. The enterprise, however, evolved into a criminal organization that engaged in drug trafficking and murder within the prisons of the PRDCR. The enterprise makes money by introducing multi-kilogram quantities of drugs into the PRDCR prisons for profit, and by engaging in murders for hire.
The indictment alleges that members and associates of La Asociación ÑETA introduced and distributed multi-kilograms of cocaine, marijuana, and heroin into the prisons of the PRDCR. They were able to introduce this contraband into the prisons with the help of corrupt PRDCR Correctional Officers, civilians who worked inside of the prison system, people who visited inmates, and persons who - from outside the prisons - threw drugs into the facilities (known as “pitcheos”), which were caught by members of the enterprise. Members of the enterprise and their associates also introduced cellular telephones into the prisons and charged a fee to other inmates for using the same. Members of the enterprise would use cellular phones to engage in drug trafficking and murder.
Specifically, the indictment alleges that people who were not incarcerated would hire La Asociación ÑETA to kill persons who were serving time in the prisons of the PRDCR. La Asociación ÑETA participated in the murders for pecuniary gain. Murders perpetrated by the organization include those of Mario Montañez-Gómez, a/k/a “Emme” on August 27, 2014, and Alexis Rodríguez-Rodríguez, a/k/a “Alexis El Loco,” on November 6, 2014.
The defendants are: Avelino Millán-Machuca, a.k.a. “Papito Machuca/El Fuerte/Viejo/Gordo;” Fernando García-Marquez, a.k.a. “Fernan Sandwich/Emparedado/ Fernan/Carlos Vega;” Cynthia González-Landrau, a.k.a. “La Cana/La Princesa/La Presidenta;” Rolando Millán-Machuca, a.k.a. “Rolo;” Alex Piñero-Sotomayor, a.k.a. “Cigüeña/Pájaro;” Miguel Rivera-Calcaño, a.k.a. “Guelo/ Kikirimiau;” Roberto Casado-Berríos, a.k.a. “Bobe/Bobel;” Iván Ayala-Hernández, a.k.a. “Bambani/Bambo;” Giordano Santana-Meléndez, a.k.a. “Viejo Ten;” Carlos Báez-Figueroa, a.k.a. “Carlitos Guaynabo;” José Trinidad-Jorge, a.k.a. “Trini;” Ángel Bermúdez-Cartagena, a.k.a. “Apache/El Doctor;” José Cintrón-Mojica, a.k.a. “Jowito;” Victor Solano-Moreta, a.k.a. “Caballo;” José Castoire-Sánchez; Luis Ayuso-Walker, a.k.a. “Buringo;” Juan Lozada-Delgado, a.k.a. “Chino San Lorenzo;” Aníbal Miranda-Montañez, a.k.a. “Jowy;” Freddie Sánchez-Martínez, a.k.a. “Casco;” Ángel Cruz-Barrientos, a.k.a. “Diego/Cloche;” Alex Miguel Cruz-Santos, a.k.a. “Alex Cuquito;” José J. Folch-Colón, a.k.a. “Joel Folch/Gordo Folch;” Billy Andino-De Jesús, a.k.a. “Billy Cupey/Billy El Calvo;” Luis Rojas-Llanos, a.k.a. “Cachorro/Kchorro;” Juan J. Claudio-Morales, a.k.a. “Claudio Canales/Claudio El Gordo;” Eduardo Rosario-Orangel, a.k.a. “Barba/Cholón;” George Torres-Rodríguez, a.k.a. “Gordo Comerio;” Luis H. Quiñonez-Santiago, a.k.a. “Hiram;” Augusto Christopher-Lind, a.k.a. “Bengie Loiza;” José L. Nieves-Torres; Luis D. Ramos-Báez, a.k.a. “Danny Power;” Orlando Ruiz-Acevedo, a.k.a. “Gordo Ponce;” Raul D. Rosario-Maldonado, a.k.a. “Davi/Davo;” Juan R. Cruz-Santana, a.k.a. “Roldán;” José Marrero-Figueroa, a.k.a. “Tito San José;” Ramón Morales-Sáez, a.k.a. “Moncho/Monchi;” Carlos Santiago-Rivera, a.k.a. “Black/Blacky/El Negro;” David González-De León, a.k.a. “Bebe Cupey;” José Díaz-López, a.k.a. “Culo De Pollo;” Osvaldo Torres-Santiago, a.k.a. “Bombilla/Baldo/Baldito;” José Velázquez-Maldonado, a.k.a. “Batata;” Roberto Martínez-Rivera, a.k.a. “Matatan;” José Sánchez-Laureano, a.k.a. “Veterano;” José González-Gerena, a.k.a. “Perpetua;” Francisco Torres-Rodríguez, a.k.a. “Kino;” Andrés Del Valle-Ortega, a.k.a. “Randy/Andy Caimito;” José R. Andino-Morales, a.k.a. “Gladiola;” Jesús P. O’neill-Gómez, a.k.a. “Pastor;” Ángel I. Díaz-Santiago; and Pedro Fontanez-Pérez.
Assistant U.S. Attorney Victor O. Acevedo-Hernández is in charge of the prosecution of the case. The Federal Bureau of Investigation (FBI) and the Puerto Rico Department of Corrections collaborated during the investigation.
“I want to acknowledge the dedication and commitment of the FBI and the Department of Corrections agents and officials who participated in this substantial investigation which resulted in today’s arrests,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This success of this operation shows the continued teamwork of federal law enforcement and our state and local partners to reduce gang violence inside the prisons in Puerto Rico. The United States Attorney’s Office will zealously prosecute these defendants and bring them to justice.”
“Even prison walls were not enough to stop the brazen acts of this violent gang,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division. “In reality, their conduct is more accurately described as that of an international mafia than a prison gang. Their network reached throughout Puerto Rico and the continental United States. This enabled them to order hits on rival gang members, corrupt two sworn officers, and to move large quantities of drugs and other contraband, effectively turning their prison into a gang-controlled housing project. The dismantlement of this criminal enterprise was achieved through the tireless investigation of our case agents and partners with the United States Attorney’s Office, United States Marshals Service, Puerto Rico Department of Corrections and Rehabilitation, and the Police of Puerto Rico.”
If convicted, the defendants face 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.
22 Defendants Charged Federally with Collectively Receiving over $13 Million from USDA by Fraudulently Trading Food Stamps for CashRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), Pam Bondi, Florida Attorney General, Jeff Atwater, Florida Chief Financial Officer, Mike Carroll, Secretary, Florida Department of Children and Families, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Miami Regional Operations Center, U.S. Marshal Amos Rojas Jr. for the United States Marshals Service’s (USMS) Regional Fugitive Task Force, Miami Field Office, Juan J. Perez, Director, Miami Dade Police Department (MDPD), Rodolfo Llanes, Chief, Miami Police Department (MPD), Ric Bradshaw, Sheriff, and Palm Beach County Sheriff’s Office (PBSO), announce the filing of federal charges against 22 retail store owners or operators in connection with schemes to illegally redeem food stamp benefits in exchange for cash. The indictments allege that the retailers received more than $13 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores and vendors allegedly took illicit profits from the fraudulent transactions with food stamp recipients. In addition to the federal indictments, 6 individuals have been charged by the Office of Statewide Prosecution for their alleged receipt of additional illegal payments during the course of their participation in fraudulent food stamp schemes. This joint operation resulted in the largest combined financial fraud loss for a food stamp trafficking takedown in history.
“When individuals defraud governmental programs, they steal taxpayer funded benefits that are intended to feed the families and children in our communities who are most in need,” stated United States Attorney Wifredo A. Ferrer. “The U.S. Attorney’s Office and our federal law enforcement partners are committed to working with our state and local allies to investigate and prosecute individuals that commit fraudulent schemes for illicit personal financial gain.”
“These flea market retailers are charged with having taken advantage of a provision in the SNAP program designed to provide locally sourced fresh produce and meat to low income families who otherwise would likely have no option for such food items. Instead of operating within the confines of the rules and regulations for farmers' market vendors, these retailers created an illegal benefits exchange system that defrauded the American taxpayer and denied healthy foods to needy children and their families. Thousands of SNAP recipients are believed to have exchanged their EBT benefits for cash at the Opa-Locka Hialeah Flea Market. The flea market retailers, who are alleged to have orchestrated this trafficking scheme, pocketed millions in "fees" which they charged for converting food assistance benefits into cash. Any retailer who chooses to defraud taxpayers through such trafficking schemes will continue to be aggressively investigated and prosecuted by USDA-OIG and its law enforcement partners," stated Karen Citizen-Wilcox, Special Agent in Charge, USDA-OIG.
“Food stamp trafficking is a serious crime tantamount to stealing from the hardworking taxpayers in our state,” said Attorney General Bondi. “These retailers and operators thought they had devised the perfect scheme to steal from the government, but thanks to the great work by my Office of Statewide Prosecution, U.S. Attorney Wifredo A. Ferrer, and our local, state and federal law enforcement agencies, we have stopped the scheme, charged the defendants for their alleged conduct and will hold them accountable in a court of law.”
“To steal from public programs designed to help our neighbors in their greatest time of need is to steal from every taxpayer in Florida, and I’m glad to see that those who participate in the fraudulent schemes will be brought to justice,” said Chief Financial Officer Jeff Atwater. “This partnered investigation displays our shared commitment to aggressively fighting fraud in Florida, and our collective work continues.”
“Our department is committed to not only administering the food assistance program but also protecting its integrity so we can ensure Florida families have the resources they need to get them back on their feet,” said Mike Carroll, Secretary, Florida Department of Children and Families. “Today’s indictments demonstrate the strength of our partnerships and that any individuals stealing from the system will be brought to justice.”
“We utilize our very broad authorities and capabilities to partner with other agencies to disrupt and dismantle these criminal organizations to protect the taxpayer and intended recipients of the programs,” said Robert C. Hutchinson, Acting Special Agent in Charge of HSI Miami. “This is yet another example of the success of this teamwork.”
“Every Florida taxpayer is a potential victim in food stamp fraud cases.” said FDLE Commissioner Rick Swearingen. “I appreciate the work of our local, state and federal partners to bring these individuals to justice.”
City of Miami Police Department Chief Rodolfo Llanes, stated “Fraud affects all our communities in a negative manner. This case exemplified how EBT fraud is so prevalent in our jurisdiction. The Miami Police Department is very proud of its role in this case while working with our state and federal partners in order to bring this case to a successful conclusion.”
The Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federally funded, national program established by the United States government to alleviate hunger and malnutrition among lower income families. The United States Department of Agriculture (USDA) administers SNAP through its agency, the Food and Nutrition Service (FNS). FNS is responsible for the authorization and disqualification of retail food establishments participating in the redemption of SNAP benefits.
In Florida, SNAP is administered by the State of Florida Department of Children and Families (DCF). DCF is responsible for overall program administration, as well as approving, denying or revoking assistance for recipients. FNS and the State of Florida share jointly in the cost of administering the SNAP. In 1998, DCF changed the format of SNAP benefits in Florida from a traditional paper coupon system to an Electronic Benefit Transfer (EBT) card system. Recipients use the EBT card, which contains an embedded magnetic strip, to purchase approved food items from participating retailers. Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale (POS) terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
According to the indictments listed below, the defendants owned and/or operated stores in the Southern District of Florida that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program. The defendants allegedly exchanged EBT benefits for cash, in violation of the food stamp program rules. The defendants and/or their co-conspirators/employees swiped the recipient’s EBT card at a POS machine for an inflated amount, and paid the recipient, in cash, a reduced percentage of the value of food stamp benefits charged on the card. The defendants would realize a guaranteed, significant profit from each fraudulent transaction. In most situations, the recipient did not actually receive any food or eligible items in return for their food stamp benefits. As a result of unlawful cash transactions, the defendants fraudulently obtained more than $13 million dollars in EBT deposits for transactions in which the stores did not provide food.
1. United States v. Karla Rodriguez Diaz and Luis Marzo Machado, Case No. 16-20324-CR-Gayles
According to the indictment, Karla Rodriguez Diaz, 28, of Hialeah, owned a food stand business, Opa Locka Fruit and Produce Market, LLC (“Opa Locka Fruit and Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Diaz applied for, and obtained, authorization to participate in SNAP. Diaz was the sole authorized signatory on the company’s bank accounts. Luis Marzo Machado, 30, of Hialeah, is married to Diaz. Machado originally opened the business, but soon transferred ownership to Diaz, though he continued to work at the business. Between August 2014 and May 2016, Diaz and Machado were involved in a scheme in which they exchanged food stamp benefits for cash. From August 2014 through March 2016, Diaz and Machado fraudulently redeemed over $2,400,000 in EBT food stamp benefits.
2. United States v. Pedro Sanchez Barrero and Antonia Barrero, Case No. 16-2621-MJ-Simonton
According to the criminal complaint, Pedro Sanchez Barrero, 26, of Miami, Florida, the owner of a food stand business Pedro Produce, Inc. (“Pedro Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Pedro Barrero applied for and obtained authorization to participate in SNAP. From March 2016 through May 2016, Pedro Barrero and Antonia Barrero, 48, of Miami, Florida, were involved in a scheme in which they exchanged food stamp benefits for cash and fraudulently redeemed approximately $2 million in EBT food stamp benefits.
3. United States v. Diocenila Castro, Case No. 16-20319-CR-Moreno
According to the indictment, Diocenila Castro, 49, of Miami, owned a food stand business, Castro Produce, Corp. (“Castro Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Castro applied for and obtained authorization to participate in SNAP. Between November 2014 and May 2016, Castro was involved in a scheme in which she exchanged food stamp benefits for cash. From November 2014 through March 2016, Castro fraudulently redeemed over $1,500,000 in EBT food stamp benefits.
4. United States v. Matias Jose Ramirez and Jorge Saladrigas Milian, Case No. 16-20306-CR-Williams
According to the indictment, Matias Jose Ramirez, 37, of Miami and Jorge Saladrigas Milian, 56, of Opa-Locka, owned food stand businesses, Ramirez Produce, Corp. (“Ramirez Produce”) and Jorge Produce, Corp. (“Jorge Produce”), located at 12704 NW 42nd Avenue, in Opa-Locka, Florida. Ramirez and Milian applied for, and obtained, authorization to participate in SNAP. From at least as early as April 2014 and continuing through March 2016, Ramirez and Milian were involved in a scheme in which they exchanged food stamp benefits for cash. From April 2014 until March 2016, Ramirez and Milian fraudulently redeemed approximately $1.5 million in EBT food stamp benefits.
5. United States v. Reinaldo Arteaga and Luisdian Hernandez Gonzalez, Case No. 16-20307-CR-Middlebrooks
According to the indictment, Reinaldo Arteaga, 62, of Miami Gardens owned a produce stand, Arteaga Produce, Corp. (“Arteaga Produce”), located at 12705 NW 42nd Avenue, in Opa Locka, Florida. Arteaga applied for, and obtained, authorization to participate in SNAP. Between August 2014 and May 2016, Arteaga and Luisdian Hernandez Gonzalez, 22, of Miami, were involved in a scheme in which they illegally exchanged food stamp benefits for cash, by swiping EBT cards at Arteaga Produce. From August 2014 through March 2016, Arteaga and Gonzalez fraudulently redeemed over $1,200,000 in EBT food stamp benefits which were deposited into a bank account controlled by Arteaga.
Luisdian H. Gonzalez was also charged in Case No. 16-20321-CR-Gayles for his alleged involvement in a separate food stamp fraud scheme.
6. United States v. Zulfiqar Mithavayani and Jamal Al-Hawa, Case No. 16-20284-CR-Altonaga
According to the indictment, Zulfiqar Mithavayani, 51, of Miramar, owned a convenience store, ABC Food Market, located at 163 Northwest 14th Street in Miami, Florida. Mithavayani applied for and obtained authorization to participate in SNAP. Mithavayani and Jamal Al-Hawa, 60, of Davie, were involved in a scheme in which they illegally sold food stamp benefits in exchange for cash. Since March 2013, Mithavayani and Al-Hawa redeemed and caused to be redeemed over $1,100,000 in EBT food stamp benefits, over $1,000,000 more than the average convenience store in Florida during this period.
7. United States v. Maikel Manuel Riviaux, Case No. 16-20305-CR-Moore
According to the indictment, Maikel Manuel Riviaux, 42, of Hialeah, owned a seafood market, Pucho Fish Market, located at 2060 NW Opasar Locka Boulevard, in Opa Locka, Florida. Between December 2014 and May 2016, Riviaux and his co-conspirators were involved in a food stamp fraud scheme. From May 2015 through March 2016, Riviaux redeemed approximately $1,000,000 in EBT food stamp benefits which were deposited into bank accounts which he controlled. Riviaux and his co-conspirators used point of sale machines to swipe the recipient’s EBT cards at both Pucho Fish Market at 2060 NW Opa Locka Boulevard, in Opa Locka, Florida and at the Opa Locka Flea market located at 12705 NW 42nd Avenue in Opa Locka, Florida.
8. United States v. Jose Antonio Gonzalez and Noraida Pi Figueroa, Case No. 16-20304-CR-Gayles
According to the indictment, Jose Antonio Gonzalez, 45, of Miami Gardens owned a seafood delivery route business, Los Corticos Fish Corpation (“Los Corticos”), located at 3310 NW 171st Terrace, in Miami Gardens, Florida. Gonzalez applied for, and obtained, authorization to participate in SNAP. Between May 2015 and May 2016, Gonzalez and Noraida Pi Figueroa, 40, of Miami Gardens, were involved in a scheme in which they exchanged food stamp benefits for cash. From May 2015 through March 2016, Gonzalez and Figueroa fraudulently redeemed approximately $1,000,000 in EBT food stamp benefits.
9. United States v. Rafael Gonzalez Cuellar and Luis Casola Rojas, Case No. 16-20322-CR-Altonaga
According to the indictment, Rafael Gonzalez Cuellar, 54, of Opa Locka owned a food stand business, Cuellar Produce, Corp. (“Cuellar Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Cuellar applied for, and obtained, authorization to participate in SNAP. Between January 2015 and May 2016, Cuellar and Luis Casola Rojas, 43, of Hialeah, were involved in a scheme in which they exchanged food stamp benefits for cash. From January 2015 through March 2016, Cuellar fraudulently redeemed over $900,000 in EBT food stamp benefits.
Luis Casola Rojas was also charged in Case No. 16-20323-CR-Moore for his alleged involvement in a separate food stamp fraud scheme.
10. United States v. Katia Nunez Landerio, Case No. 16-20283-CR-Gayles
According to the indictment, Katia Nunez Landeiro, 35, of Miami, owned a food stand business, Katy Produce, Corp. (“Katy’s Produce”), located at 12704 NW 42nd Avenue, in Opa-Locka, Florida. Landeiro applied for, and obtained, authorization to participate in SNAP. Between July 2014 and March 2015, Landeiro was involved in a scheme in which she exchanged food stamp benefits for cash. Reyes fraudulently redeemed over $700,000 in EBT food stamp benefits.
11. United States v. Idaysi Landeiro Reyes and Javier Gallardo Gonzalez, Case No. 16-20309-CR-Scola
According to the indictment, Idaysi Landeiro Reyes, 47, of Miami Gardens, owned a food stand business, Landeiro Produce, Corp. (“Landeiro Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Reyes applied for and obtained authorization to participate in SNAP. Reyes and Javier Gallardo Gonzalez, 47, of Miami Gardens, were involved in a scheme in which they exchanged food stamp benefits for cash. From July 2015 through March 2016, Reyes fraudulently redeemed and caused to be redeemed over $600,000 in EBT food stamp benefits.
12. United States v. Nelson Chico and Luisdian H. Gonzalez, Case No. 16-20321-CR-Gayles
According to the seven-count indictment, Nelson Chico, 59, of Hialeah owned a produce stand, Rey Produce, Corp. (“Rey Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Chico applied for, and obtained, authorization to participate in SNAP. Between September 2014 and March 2016, Chico and Luisdian H. Hernandez, 22, of Hialeah, were involved in a scheme in which they exchanged food stamp benefits for cash, by swiping EBT cards at Rey Produce. From September 2014 until March 2016, Chico and Hernandez redeemed over $600,000 in EBT food stamp benefits which were deposited into a bank account that Chico controlled.
13. United States v. Fernando Fernandez Garcia, Case No. 16-20320-CR-Lenard
According to the indictment, Fernando Fernandez Garcia, 33, of Miami, owned a food stand business, Santa Cruz Shark Inc., (“Santa Cruz Shark”) located at 12704 NW 42nd Avenue, in Opa-Locka, Florida. Garcia applied for, and obtained, authorization to participate in SNAP. Between December 2014 and May 2016, Garcia was involved in a scheme in which he and his employees exchanged food stamp benefits for cash. From December 2014 through March 2016, Garcia fraudulently redeemed over $500,000 in EBT food stamp benefits.
14. United States v. Luis Casola Rojas, Case No. 16-20323-CR-Moore
According to the indictment, Luis Casola Rojas, 43, of Hialeah, owned a food stand business, Casola Produce, Corp. (“Casola Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Rojas applied for, and obtained, authorization to participate in SNAP. Between September 2015 and May 2016, Rojas was involved in a scheme in which he exchanged food stamp benefits for cash. From October 2015 through March 2016, Rojas fraudulently redeemed over $380,000 in EBT food stamp benefits.
15. United States v. Angelo Socarras, Case No. 16-20308-CR-Cooke
According to the indictment, Angelo Socarras, 37, of Hialeah, owned a food stand business, Angelo Produce, Corp. (“Angelo Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Socarras applied for and obtained authorization to participate in SNAP. From October 2015 through March 2016, Socarras was involved in a scheme in which he exchanged food stamp benefits for cash and fraudulently redeemed approximately $190,000 in EBT food stamp benefits.
If convicted of the charged conduct, a defendant faces a possible maximum statutory sentence of 20 years’ imprisonment for conspiracy to commit wire fraud; 20 years’ imprisonment for wire fraud; and 5 years’ imprisonment for food stamp/EBT fraud.
U.S. Attorney Ferrer acknowledged the dedicated efforts of the Florida Attorney General, Florida Department of Children and Families, Florida Department of Financial Services to provide services to the community and identify for prosecution those individuals who compromise public benefits. Mr. Ferrer also commended the investigative efforts of USDA-OIG, PBSO and MPD, and expressed his gratitude to ICE-HSI, FDLE, U.S. Marshals Service, MDPD and the United States Coast Guard (District 7), for their assistance with the investigation and law enforcement operation. Mr. Ferrer recognized Assistant United States Attorneys Timothy J. Abraham, Miesha S. Darrough, Anne P. McNamara, Daya Nathan, Jonathan K. Osborne, Brian J. Shack, and Jonathan D. Stratton, who are prosecuting these cases.
A complaint or an indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
21 Members of South Bronx Drug Trafficking Organization Charged with Narcotics Trafficking and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (“HSI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of two Indictments charging a total of 21 members of a Bronx-based drug trafficking organization with narcotics trafficking and firearms offenses. The organization operates in the vicinity of the Diego Beekman Houses (“Beekman Houses”) in the South Bronx and is charged in two separate indictments – United States v. Demetrius Flowers et al. and United States v. Damon Guadalupe et al. Some of the members of the organization were affiliated with a subset of the Bloods Street Gang, known as the “Low Rider Brims,” and other members were affiliated with a gang known as the “Young Shooters.” Of the 21 defendants charged in both Indictments, 14 are currently in custody, including 12 defendants who were arrested earlier today and yesterday as part of a coordinated takedown. The defendants already in custody will be presented today before United States Magistrate Ronald L. Ellis in Manhattan federal court.
In connection with today’s takedown, law enforcement agents also executed search warrants at three locations, including residential apartments in the area occupied by several of the defendants. During the execution of those search warrants, agents recovered, among other items, crack, cocaine, marijuana, as well as ammunition and gang paperwork. To date, in this case, agents and officers have seized, among other evidence, quantities of crack, cocaine, heroin, marijuana, prescription pills, as well as firearms, ammunition, and knives. During the investigation, agents and officers also intercepted thousands of wiretapped calls, during many of which various members and associates of the drug trafficking organization discussed their gang and narcotics activities.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants, many of them members of street gangs, terrorized a South Bronx neighborhood with their drug dealing and violence. Law enforcement has no duty more important than keeping our citizens safe. As we have done in a number of recent takedowns with our law enforcement partners, we will continue to focus on those in our communities who are allegedly responsible for so much of the gang and gun violence. All New Yorkers are entitled to live in neighborhoods free from constant drug-dealing and senseless violence. That is why we bring actions like the one we bring today.”
DEA Special Agent-in-Charge James J. Hunt said: “Law enforcement’s crackdown on gang related drug trafficking has netted 14 more arrests in New York City. It is alleged that the ‘Low Rider Brims’ and ‘Young Shooters’ street gangs instilled fear and intimidation in the residents of the Beekman Housing Projects in the Bronx. Not only did their alleged drug trafficking fuel drug addiction, their ‘armed and ready’ attitude resulted in numerous shootings and turf battles jeopardizing the safety of the neighboring schools and community.”
HSI Special Agent-in-Charge Angel M. Melendez said: “Residents of the Mott Haven section of the Bronx can rest easier knowing members of a violent gang are under arrest and out of their neighborhood. These gangs allegedly peddled drugs and used violence to protect their criminal enterprise. HSI and its law enforcement partners are committed to combating violent criminal organizations and ensure the continued safety of our communities.”
Commissioner William J. Bratton said: “This investigation is the latest example of a coordinated effort to combat drug trafficking, whose operations brought an influx of violence and firearms to the Bronx. I commend both our NYPD detectives and law enforcement partners for their hard work, which led to these arrests, and for their ongoing commitment to protect our neighborhoods.”
As alleged in the Indictments unsealed today in Manhattan federal court and in other court papers[1]:
The Beekman Houses is a private housing complex comprising approximately 38 apartment buildings in the Mott Haven neighborhood of the Bronx, New York. From at least 2010 up to and including May 2016, the defendants operated a drug trafficking organization (the “Beekman Houses DTO”) in and around the Beekman Houses. The Beekman Houses DTO trafficked in a variety of narcotics – including crack cocaine, heroin, and marijuana – on a daily basis. Some of the members of the Beekman Houses DTO were affiliated with a subset of the Bloods Street Gang known as the “Low Rider Brims,” and other members were affiliated with a gang known as the “Young Shooters.” The defendants sold narcotics in areas frequented by New York City’s most vulnerable citizens, including in the vicinity of New York City schools.
In addition, members of the Beekman Houses DTO protected and maintained their drug business through the possession of firearms and acts of violence. These included shootings that happened in broad daylight on public streets and into apartment buildings.
* * *
Charts containing the names, ages, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the NYPD’s Bronx Gang Squad, HSI’s El Dorado Task Force, and the New York Field Division of the DEA, as well as the United States Marshals’ Service for its assistance in today’s arrests. He also thanked the Bronx County District Attorney’s Office for their support in this ongoing investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Eli J. Mark and Matthew Laroche are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Demetrius Flowers, a/k/a “MoJo” et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to Distribute Narcotics
(including crack cocaine, heroin, and marijuana)
21 U.S.C. § 846
DEMETRIUS FLOWERS, a/k/a “Mojo,”
JOSEPH SMITH, a/k/a “Joe Lite,”
FRANK O’BRYANT, a/k/a “Frank White,”
ELADIO PADILLA, a/k/a “Nino,”
QUINZELL FRAZIER, a/k/a “Q Black,” a/k/a “Blizzy,”
JONATHAN SAEZ, a/k/a “John J,” a/k/a “J,”
BRIAN MCBETH, a/k/a “Smoove,”
FRANCISCO REYES, a/k/a “Bundlez,”
LUIS CRUZ, a/k/a “Manny,”
RALPHIE DEJESUS, a/k/a “Nuws,”
GABRIEL OCASIO, a/k/a “Fifty,”
RAHIM SOLANO, a/k/a “Rah,” a/k/a “Radio,”
MICHAEL MESTRE, a/k/a “Getty,” a/k/a “Wax,”
SAQURAN CURTIS, a/k/a “Esai,”
CHRISTOPHER NAPOLEONIS, a/k/a “Pudge,”
ROBERT WILSON, a/k/a “Rubar,” a/k/a “Lil Rubar,”
Life in prison with a mandatory minimum of 10 years in prison
2
Use of Firearms in Furtherance of Narcotics Trafficking
18 U.S.C. § 924(c)(1)(A)
DEMETRIUS FLOWERS, a/k/a “Mojo,”
JOSEPH SMITH, a/k/a “Joe Lite,”
FRANK O’BRYANT, a/k/a “Frank White,”
ELADIO PADILLA, a/k/a “Nino,”
QUINZELL FRAZIER, a/k/a “Q Black,” a/k/a “Blizzy,”
JONATHAN SAEZ, a/k/a “John J,” a/k/a “J,”
BRIAN MCBETH, a/k/a “Smoove,”
FRANCISCO REYES, a/k/a “Bundlez,”
LUIS CRUZ, a/k/a “Manny,”
RALPHIE DEJESUS, a/k/a “Nuws,”
GABRIEL OCASIO, a/k/a “Fifty,”
RAHIM SOLANO, a/k/a “Rah,” a/k/a “Radio,”
MICHAEL MESTRE, a/k/a “Getty,” a/k/a “Wax,”
Life in prison with a mandatory minimum of 10 years in prison
3
Felon in Possession of a Firearm
18 U.S.C. § 922(g)(1)
DEMETRIUS FLOWERS, a/k/a “Mojo,”
10 years in prison
DEFENDANT
AGE
DEMETRIUS FLOWERS, a/k/a “Mojo,”
35
JOSEPH SMITH, a/k/a “Joe Lite,”
28
FRANK O’BRYANT, a/k/a “Frank White,”
29
ELADIO PADILLA, a/k/a “Nino,”
27
QUINZELL FRAZIER, a/k/a “Q Black,” a/k/a “Blizzy,”
23
JONATHAN SAEZ, a/k/a “John J,” a/k/a “J,”
30
BRIAN MCBETH, a/k/a “Smoove,”
24
FRANCISCO REYES, a/k/a “Bundlez,”
22
LUIS CRUZ, a/k/a “Manny,”
20
RALPHIE DEJESUS, a/k/a “Nuws,”
24
GABRIEL OCASIO, a/k/a “Fifty,”
28
RAHIM SOLANO, a/k/a “Rah,” a/k/a “Radio,”
24
MICHAEL MESTRE, a/k/a “Getty,” a/k/a “Wax,”
24
SAQURAN CURTIS, a/k/a “Esai,”
26
CHRISTOPHER NAPOLEONIS, a/k/a “Pudge,”
26
ROBERT WILSON, a/k/a “Rubar,” a/k/a “Lil Rubar,”
24
United States v. Damon Guadalupe, a/k/a “Pappy,” et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to Distribute Narcotics
21 U.S.C. § 846
DAMON GUADALUPE, a/k/a “Pappy,”
MOHAMMED FABELO, a/k/a “Mo,”
WILLIAM RODRIGUEZ,
JASON HOOKS, a/k/a “Hamo,”
WILFREDO LABOY, a/k/a “Gutter,”
Life in prison with a mandatory minimum of 10 years in prison
2
Possession of Firearms in Furtherance of Narcotics Trafficking
18 U.S.C. § 924(c)(1)(A)
DAMON GUADALUPE, a/k/a “Pappy,”
Life in prison with a mandatory minimum of 5 years in prison
DEFENDANT
AGE
DAMON GUADALUPE, a/k/a “Pappy,”
34
MOHAMMED FABELO, a/k/a “Mo,”
38
WILLIAM RODRIGUEZ,
54
JASON HOOKS, a/k/a “Hamo,”
31
WILFREDO LABOY, a/k/a “Gutter,”
30
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
10 May 2016
Washington County Man Sentenced to Two Years in Prison for Defrauding HospitalsRead the Press Release
PANAMA CITY, FLORIDA – Eon L. Menckeberg, 55, of Chipley, Florida, was sentenced today to two years’ imprisonment and ordered to pay $268,135.10 in restitution to Northwest Florida Community Hospital and $122,184.38 in restitution to Jackson County Hospital. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
On January 14, 2016, Menckeberg was convicted by a jury of six counts of wire fraud for falsely representing to a hospital that he possessed health insurance to obtain specialized medical treatments for a broken ankle. At trial, the government presented evidence that, in May 2012, Menckeberg visited the Jackson County Hospital emergency room after sustaining a compound fracture to his ankle. Over the next several months, Menckeberg was treated and received several surgeries for his injury. In September 2012, after falsely representing that he had insurance to cover his medical expenses at Jackson County Hospital, Menckeberg went to the Wound Trauma Institute at the Northwest Florida Community Hospital to obtain elective hyperbaric-oxygen treatment to aid in the healing of the wound. To pay for the treatments, he falsely told hospital staff that he possessed health insurance through Lloyd’s of London and was president of the Prince Trust. Menckeberg submitted false documents purporting to confirm insurance coverage and authorizing the elective treatments at the hospital. Menckeberg received numerous hyperbaric-oxygen treatments during the next several months, and the treatments and physician costs at the Northwest Florida Community Hospital totaled more than $268,000. Medical treatment at the Jackson County Hospital totaled more than $122,000. Menckeberg was assisted in the fraud by a woman who posed as a Lloyd’s of London broker and told both hospitals that Menckeberg had sufficient insurance to cover his medical treatment. The monies owed to the hospitals were never paid by Menckeberg.
While the jury was deliberating in January, the defendant was taken into federal custody for violating the terms of his pre-trial release by being illegally present in the U.S. At a hearing, it was revealed that Menckeberg was not a United States citizen, but actually a citizen of Suriname. Nineteen years earlier, the Immigration and Naturalization Service denied Menckeberg’s petition to become a permanent resident alien and ordered him to voluntarily depart from the United States by December 26, 1986. Menckeberg failed to do so. Menckeberg subsequently obtained a Florida driver’s license and claimed to be a U.S. citizen born in Florida. Menckeberg has been living and posing as a U.S citizen for the past 19 years. Upon completion of his federal prison sentence, Menckeberg will be subject to deportation from the United States.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Financial Services, Division of Insurance Fraud. It was prosecuted by Assistant United States Attorney Stephen M. Kunz.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Union President from Ocean County, New Jersey, Convicted of Embezzling over $350,000 in Union FundsRead the Press Release
TRENTON, N.J. – The founder of the United Security and Police Officers of America (USPOA) was convicted today by a federal jury of embezzling hundreds of thousands of dollars in union funds for his personal use, U.S. Attorney Paul J. Fishman announced.
Assane Faye, 61, of Toms River, New Jersey, was convicted of all counts of an indictment charging him with two counts of embezzling union funds and seven counts of mail fraud arising from unemployment insurance fraud. Faye was convicted following a three-week trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. The jury deliberated for five hours before returning the guilty verdict.
According to the documents filed in this case and the evidence presented at trial:
As the founder, national president, and director of the USPOA, as well as a signatory on the USPOA checking account, Faye was obligated to hold and disperse funds of the USPOA solely for the benefit of the union and its members.
Yet in Feb. 2010, without approval of the USPOA Executive Board, Faye put a woman identified in the indictment as “Individual 1,” with whom he had a prior romantic relationship, on the USPOA payroll for $800 a week, purportedly to act as a USPOA organizer in New York. She received additional allowances of $1500 for monthly medical coverage, as well as disbursements for mileage, tolls, parking and vehicle tune-ups. Individual 1 had limited ability to communicate in English, lacked labor organizing experience, and did not own a personal vehicle. As such, Faye’s representations to the Executive Board of her organizing successes were fictional. In addition, Faye had access to both Individual 1’s personal data and bank accounts.
For three and one half years, the union dispersed over $244,000 to Individual 1 while she performed no services for the union. Individual 1 testified that, for at least six months of every year she was on the payroll, she resided in her home country of Senegal. During that time, Faye withdrew approximately $180,000 of her union salary and expense payments for his personal use.
In addition, Faye submitted to the USPOA inflated reimbursement vouchers purportedly for mileage and wear and tear on his personal car, even though he was using rental vehicles. Faye even submitted false vouchers when he traveled outside the United States to Paris, Dubai, China and Milan.
Lastly, despite controlling and collecting disbursements from the USPOA operating account, between April 5, 2010 and June 30, 2010, Faye also committed seven counts of mail fraud by misrepresenting his employment status and fraudulently collecting over $7,000 in unemployment payments from New Jersey’s Unemployment Insurance Division.
Each count of embezzlement carries a maximum potential penalty of five years in prison and a $250,000 fine. Each count of mail fraud arising from Faye’s unemployment insurance fraud carries a maximum potential penalty of twenty years in prison and a $250,000 fine. Sentencing is set for Aug. 22, 2016.
U.S. Attorney Fishman credited the Department of Labor, Office of Inspector General (OIG), under the supervision of Acting Supervisory Agent in Charge Jonathan Mellone, and the Office of Labor Management Standard (OLMS) under the supervision of District Director Andriana Vamvakas for the investigation and trial support leading to today’s verdict.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Office’s Organized Crime and Gang Unit in Newark.
Defense counsel: Andrea Bergman and Lisa Van Hoeck, Federal Public Defenders
Two Clarksburg, WV residents sentenced for selling drugs near local playgroundsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two Clarksburg residents were sentenced today for selling cocaine and prescription drugs near local playgrounds, United States Attorney William J. Ihlenfeld, II, announced.
Davina Bland, 22, of Clarksburg, sold cocaine near Clarksburg City Park – Monticello Avenue Playground in Harrison County, West Virginia. She pled guilty in September 2015 to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location.” She was sentenced today to 33 months in prison.
Tyler Shay Romine, 24, of Clarksburg, sold buprenorphine near Clarksburg City Park – Stealy Park, a playground in Harrison County, West Virginia. He pled guilty in September 2015 to one count of “Distribution of Buprenorphine within 1,000 feet of a Protected Location.” He was sentenced today to 15 months in prison.
Assistant U.S. Attorney Sarah Montoro and former Assistant U.S. Attorney Shawn Morgan prosecuted the cases on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Three Men Arrested for Possession with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI- Miguel Rodriguez, 60, of St. Thomas, Estanislao de Jesus, 47, and Tomas Miguel Liriano Castillo, 44, both of the Dominican Republic, were arrested Monday on a criminal complaint charging them with one count each of possession with intent to distribute narcotics, United States Attorney Ronald W. Sharpe announced today. Rodriguez, de Jesus, and Castillo made their initial appearance in court today before District Court Magistrate Judge Ruth Miller. A detention hearing is set for May 11, 2016 for Rodriguez, and May 12, 2016 for de Jesus and Castillo. A preliminary hearing is set for May 12, 2016 for all three men.
According to the complaint, Castillo came by vessel from Tortola with six kilograms of cocaine. Castillo had made arrangements with de Jesus and Rodriguez to pick him up at Hull Bay. When the boat arrived in Hull Bay, Castillo was seen jumping from the vessel with a backpack while de Jesus and Rodriguez waited for him on shore. When Drug Enforcement Administration (DEA) Agents approached the men, Castillo attempted to throw the backpack under a tree. The bag was searched and six bricks of a white substance were located inside the backpack. The substance field tested positive for cocaine and weighed approximately six kilograms. It was determined that Castillo and de Jesus are in the United States illegally.
Possession with the intent to distribute cocaine carries a sentence of not less than 10 years in prison and up to life.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the DEA, U.S. Department of Homeland Security, Homeland Security Investigations, FBI, United States Postal Inspection Service, Internal Revenue Service-Criminal Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Syrian Electronic Army Member Extradited to the United StatesRead the Press Release
Peter Romar, 36, a Syrian national affiliated with the Syrian Electronic Army (SEA), made his initial appearance this afternoon before U.S. Magistrate Judge John F. Anderson of the Eastern District of Virginia on charges that he conspired to violate U.S. law, including by unauthorized access to, and damage of, computers and related extortionate activities; receiving the proceeds of extortion; money laundering; wire fraud; violations of the Syrian Sanctions Regulations; and unlawful interstate communications.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director James Trainor of the FBI’s Cyber Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office announced Romar’s extradition.
Romar, who was detained by German authorities on a provisional arrest warrant on behalf of the United States, was charged by criminal complaint unsealed on March 22, 2016.
According to allegations in the complaint, beginning in or around 2011, co-defendant Firas Dardar, 27, known online as “The Shadow,” and another member of the SEA’s “Special Operations Division” engaged in a multi-year criminal conspiracy to conduct computer intrusions against perceived detractors of President Bashar al-Assad, including media entities, the White House and foreign governments. Beginning in or around 2013, SEA members Romar and Dardar also engaged in an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit. Specifically, the complaint alleges that the conspiracy would gain unauthorized access to the victims’ computers and then threaten to damage computers, delete data or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. In at least one instance, Dardar attempted to use his affiliation with the SEA to instill fear into his victim. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to the Syrian Sanctions Regulations or other international sanctions regulations, Romar would act as an intermediary in an attempt to evade those sanctions.
The case is being investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security and other law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia, and Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance.
Syrian Electronic Army Member Extradited to the United StatesRead the Press Release
ALEXANDRIA, Va. – Peter Romar, 36, a Syrian national affiliated with the Syrian Electronic Army (SEA), made his initial appearance here this afternoon on charges that he conspired to violate U.S. law, including by unauthorized access to, and damage of, computers and related extortionate activities; receiving the proceeds of extortion; money laundering; wire fraud; violations of the Syrian Sanctions Regulations; and unlawful interstate communications.
Romar, who was detained by German authorities on a provisional arrest warrant on behalf of the United States, was charged by criminal complaint unsealed on March 22, 2016.
According to allegations in the complaint, beginning in or around 2011, co-defendant Firas Dardar, 27, known online as “The Shadow,” and another member of the SEA’s “Special Operations Division” engaged in a multi-year criminal conspiracy to conduct computer intrusions against perceived detractors of President Bashar al-Assad, including media entities, the White House and foreign governments. Beginning in or around 2013, SEA members Romar and Dardar also engaged in an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit. Specifically, the complaint alleges that the conspiracy would gain unauthorized access to the victims’ computers and then threaten to damage computers, delete data or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. In at least one instance, Dardar attempted to use his affiliation with the SEA to instill fear into his victim. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to the Syrian Sanctions Regulations or other international sanctions regulations, Romar would act as an intermediary in an attempt to evade those sanctions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; James Trainor, Assistant Director of the FBI’s Cyber Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Romar’s initial appearance.
The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia, and Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance.
The case is being investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security and other law enforcement agencies.
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 Nos. 1:14-mj-292, and 1:14-mj-498.
Criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Summerville Man Sentenced to Prison in $45 Million Mortgage Fraud SchemeRead the Press Release
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Scott M. Wickersham, age 36, of Summerville, has been sentenced in federal court in Charleston, South Carolina for Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, a violation of 18 U.S.C. § 1349, and two counts of Willfully Making and Subscribing a False Tax Return, in violation of Title 26, United States Code, Section 7206(1). U.S. District Judge Richard M. Gergel sentenced Wickersham to 36 months in federal prison for the conspiracy count and 30 months on each of the two tax fraud counts, to run concurrently. Judge Gergel also ordered Wickersham to serve five years of supervised release on the conspiracy count and one year of supervised release on each of the two tax fraud counts after he is released from prison, to run concurrently. Wickersham was also ordered to pay restitution in the amount of $23,997,151 on the conspiracy count, and he was further ordered to pay the Internal Revenue Service a total of $256,862 in restitution for the two tax counts.
Evidence presented in court documents and hearings established that Wickersham participated in a mortgage fraud conspiracy that utilized real estate and mortgage businesses operated in Summerville, South Carolina, under the names North American Mortgage Group, LLC; Realty Executives of Coastal Carolina; and New Freedom Enterprises, LLC. The scheme involved more than 70 properties, approximately $45 million of mortgage loans, and a loss of more than $23 million suffered by financial institutions. The properties were located in Charleston, Johns Island, Ladson, Mount Pleasant, Summerville, Edisto Island, St. Helena Island, Garden City, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Lake Keowee, and Tybee Island, Georgia.
Wickersham was a loan officer for North American Mortgage Group, LLC; a real estate agent and part-owner/franchisee of Realty Executives of Coastal Carolina; and a partner in New Freedom Enterprises, LLC. Wickersham and others used straw purchasers and made other false representations on mortgage loan applications to induce financial institutions to provide mortgage loans for the properties in the scheme. The properties later went into foreclosure and sold at a significant loss to the lenders.
In addition to his participation in the mortgage fraud scheme, Wickersham also willfully made and filed false U.S. Individual Income Tax Returns, Forms 1040, for calendar years 2006 and 2007. Both of those returns, which he filed late on January 27, 2009, were materially false because he willfully failed to report income he received from the mortgage fraud scheme. Specifically, on line 22 of the 2006 tax return, he claimed $103,205 of total income when he knew he had at least $965,402 of total income. On line 22 of the 2007 tax return, he claimed $13,383 of total income when he knew he had at least $256,119 of total income. This under reporting resulted in a tax loss of $206,100 for 2006 and $50,762 for 2007, for a total tax loss of $256,862. Each return was verified by a written declaration that it was made under the penalties of perjury.
Two other defendants have been convicted in connection with the mortgage fraud scheme. Steven F. Weiss, 67, of Virginia Beach, Virginia, pleaded guilty to one count of Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, in violation of Title 18, United States Code, Section 371. Weiss, a former loan officer of North American Mortgage Group, LLC, was sentenced in April to 30 months in federal prison. Judge Gergel also ordered Weiss to serve three years of supervised release after he is released from prison and to pay restitution in the amount of $4,961,732. Kelly Martin, 34, of Moncks Corner, pleaded guilty in 2015 to one count of Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, in violation of Title 18, United States Code, Section 371. She is awaiting sentencing.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
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Springfield Woman Pleads Guilty to Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman pleaded guilty in federal court today to producing and distributing child pornography.
Tracy Ann Smith, 41, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charges contained in a Jan. 19, 2016, federal indictment.
By pleading guilty today, Smith admitted that she used a minor, identified as Jane Doe #1, to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Smith also admitted that she received and distributed child pornography during that time.
Under federal statutes, Smith is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 50 years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Spartanburg Man Guilty in Three Million Dollar Wire FraudRead the Press Release
Contact Person: David Stephens (864) 282-2100
Greenville, South Carolina ---- United States Attorney Bill Nettles announced today that Claus C. Foerster, age 55, formerly of Spartanburg, South Carolina, entered a plea of guilty as charged today to multiple counts of Wire Fraud in violation of Title 18, United States Code, Section 1343. United States District Court Judge Bruce H. Hendricks, sitting in Greenville, accepted the plea of guilty. Judge Hendricks will sentence Foerster after the preparation of a Presentence Report. On each of the five counts of the Indictment, Foerster faces a possible sentence of up to twenty years in prison and a fine of $250,000.00.
At the guilty plea hearing Assistant United States Attorney David C. Stephens advised the court of the following: 1997 through 2014 Mr. Foerster was a financial advisor employed by national investment counseling firms. In approximately 2000 Mr. Foerster began stealing from his clients. He would advise the clients that he had located better investments than their current portfolio. He would then tell them that to get in to these investments they would have to withdraw their funds from his employers’ accounts and transfer them to his account for further investment. Once the funds were in Mr. Foerster’s account he would simply divert them to his own use. By creating bogus account statements and on occasion returning some funds to the clients as “profits” he was able to keep the scheme going for over a decade. By his use of this scam Foerster cheated his clients out of more than three million dollars ($3,000,000.00).
The United States Secret Service investigated the case. Mr. Nettles commended them and AUSA Stephens for their diligence in this investigation and prosecution.
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Southern California Man Pleads Guilty to Making Illegal Contributions to His Son’s Congressional CampaignsRead the Press Release
A southern California man pleaded guilty today to making excessive campaign contributions and making campaign contributions in the name of another.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California made the announcement.
Babulal Bera, 83, of La Palma, California, pleaded guilty in Sacramento before U.S. District Judge Troy L. Nunley in the Eastern District of California. He is scheduled to be sentenced by Judge Nunley on Aug. 4.
In connection with his pleas, Bera admitted that, in 2010 and 2012, he made the maximum allowable individual contributions to his son’s congressional campaigns in California’s District 3 (2010) and District 7 (2012). He further admitted that he solicited friends, family members and acquaintances to make contributions, which he then reimbursed with his own funds to make campaign contributions in excess of the contribution limits established by federal law. The government has identified over 130 improper campaign contributions involving approximately 90 contributors in the two elections. To date, the government has identified over $220,000 in reimbursed contributions relating to the 2010 campaign and over $40,000 in reimbursed contributions relating to the 2012 campaign.
This case was investigated by the FBI. Trial Attorney Richard Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys John Vincent and Philip Ferrari are prosecuting the case.
Southern California Man Pleads Guilty to Making Illegal Contributions to His Son’s Congressional CampaignRead the Press Release
SACRAMENTO, Calif. — Babulal Bera, 83, of La Palma, pleaded guilty today to making excessive campaign contributions and making campaign contributions in the name of another.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting United States Attorney Phillip A. Talbert made the announcement.
The charges were filed in the District Court in Sacramento on Monday. Earlier today, Bera was arraigned and pleaded guilty to both counts before United States District Judge Troy L. Nunley.
According to court documents, in 2010 and 2012, Bera’s son was a candidate for a seat in the United States Congress representing District 3 (2010) and District 7 (2012) from the state of California. With respect to both elections, the candidate’s official federal campaign committee was headquartered in Elk Grove. With respect to both elections, the defendant made the maximum allowable individual contributions to his son’s campaign, and he also solicited friends, family members and acquaintances to make contributions, which he then reimbursed with his own funds. Bera did this to make contributions to his son’s campaign in excess of the contribution limits established by federal law. With respect to the 2010 and 2012 elections, the government has identified over 130 improper campaign contributions involving approximately 90 contributors. To date, the government has identified over $220,000 in reimbursed contributions relating to the 2010 campaign, and over $40,000 in reimbursed contributions relating to the 2012 campaign.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys John Vincent and Philip Ferrari, and Department of Justice Public Integrity Section Trial Attorney Richard Evans are prosecuting the case.
Bera, who was ordered released on his own recognizance, is scheduled to be sentenced by Judge Nunley on August 4, 2016. Bera faces a maximum statutory penalty of five years in prison on each count. 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.
Sherman Man Charged with Violating Clean Air Act, Making False Statements Related to Asbestos RemovalRead the Press Release
Springfield, Ill. – A Sherman, Ill., man, Joseph J. Chernis, IV, is scheduled to appear for arraignment on June 7, 2016, in federal court, to face charges that he violated the Clean Air Act and made false statements related to asbestos removal at the former Pillsbury Mills / Cargill facility in Springfield. The indictment, returned by the grand jury on May 5, 2016, charges Chernis, 33, with illegal and unsafe asbestos removal and with making false statements during a hearing in the Circuit Court of the Seventh Judicial District, Sangamon County.
The indictment alleges that in October 2014, Chernis hired an untrained individual to illegally remove dry asbestos pipe insulation from the facility located at 1525 East Phillips Street. From October 2014 to August 2015, dry asbestos-containing insulation was allegedly cut and stripped from pipes inside four buildings at the facility, including the structure known as the Dryer building. The asbestos debris was stuffed into approximately 300 garbage bags and at least two open-topped cardboard boxes, and left inside vacant buildings at the facility. The indictment further alleges that in late October 2014, Chernis caused the Dryer building to be demolished with more than 1,000 linear feet of asbestos pipe insulation remaining inside the structure.
The indictment further charges Chernis with two counts of making false statements during a hearing on Oct. 1, 2015, in the Circuit Court of the Seventh Judicial District, Sangamon County, in connection with a civil action filed against him by the Illinois Attorney General’s Office at the request of the Illinois Environmental Protection Agency. The indictment alleges Chernis falsely represented that he did not know who had performed the demolition work at the Pillsbury Mills / Cargill facility, when he knew that he had personally participated in the demolition work and had solicited others to assist him. In addition, Chernis allegedly falsely represented that another individual was responsible for the work activity by the untrained individual hired to remove dry asbestos pipe insulation when he knew that he had hired and directed the individual’s activity at the facility.
Under provisions of the Clean Air Act, the EPA has promulgated rules, regulations and requirements to control the removal, handling and disposal of asbestos, a hazardous air pollutant. Any owner or operator of a renovation or demolition activity which involves removal of specified amounts of asbestos-containing material must comply with the EPA regulations.
The indictment specifically charges Chernis with four violations of the Clean Air Act and the federal asbestos regulations from Oct. 1, 2014, to Aug. 31, 2015: failure to have at least one on-site representative, trained in federal asbestos regulations, present during the removal of regulated asbestos-containing material; failure to adequately wet all regulated asbestos-containing material and ensure that it remained wet until collected and contained or treated in preparation for disposal; failure to remove all regulated asbestos-containing material from a building before beginning any activity that would break-up, dislodge or similarly disturb regulated asbestos-containing material; and failure to deposit all asbestos-containing waste material as soon as was practical at a waste disposal site operated in accordance with the federal asbestos regulations.
If convicted, the statutory penalty for each count charged in the indictment, violation of the Clean Air Act (four counts) and making a false statement (two counts), is a maximum of five years in prison and a term of supervised release of up to three years following any term of imprisonment, as well as a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Katherine Boyle and Special Assistant U.S. Attorney James Cha. The charges are the result of investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Sex Offender Sentenced for Failing to Register in MassachusettsRead the Press Release
BOSTON – A former Amherst man was sentenced yesterday in U.S. District Court in Springfield for failing to register as a sex offender, his fifth conviction for violating his registration obligations.
Jose Dones, 40, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 30 months in prison and seven years of supervised release. In January 2016, Dones pleaded guilty to one count of failing to register as a sex offender.
Dones was designated a Level Three sex offender in New York after being convicted of rape in 1994 and forcible touching in 2008. Dones was aware of his obligations to register as a sex offender, but failed to do so leading to four convictions in New York. In November 2014, Dones moved from New York to Amherst, Mass. to live with a woman he met on the Internet and her children, and failed to register as a sex offender for over two months.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Second Defendant Pleads Guilty to Methamphetamine Conspiracy ChargeRead the Press Release
ROANOKE, VIRGINIA – The second member of a conspiracy that distributed methamphetamine in the Western District of Virginia pled guilty today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick announced today.
Timothy Scott Anderson, 50, of Wytheville, Virginia, pled guilty today in District Court to one count of conspiring to distribute more than 500 grams of a mixture containing methamphetamine.
“The scourge of methamphetamine abuse continues to ravage communities throughout Southwest Virginia,” United States Attorney John P. Fishwick Jr. said today. “We will continue to be vigilant in working with our partners in law enforcement to combat this growing threat.”
At sentencing, Anderson faces a mandatory minimum sentence of ten years in prison and a maximum statutory sentence of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Repeat Sex Offender Sentenced to over Ten Years in Prison for Possession of Child PornographyRead the Press Release
PHOENIX – On May 9, 2016, David Lee Frater, 63, of Mesa, Ariz., was sentenced by U.S. District Judge David G. Campbell to 125 months in prison followed by a lifetime term of supervised release. Frater had previously pleaded guilty to possession of child pornography.
In 2014, a detective in New Zealand encountered a user on a popular file-sharing software who was distributing images of child pornography. Through this investigation, it was learned that the individual was Frater, who had also been advertising child pornography under alternate online personas. Frater was an unregistered sex offender who had previously been convicted of possession of child pornography and annoying or molesting a child under 18. A search warrant was executed at Frater’s residence which revealed he was in possession of over 28,000 images and 713 videos of child pornography, some of which depicted prepubescent minors and sadistic or masochistic conduct. In sentencing Frater, Judge Campbell indicated that child pornography is a “scourge of society” that preys on helpless victims and to traffic the materials “fuels the fire that is consuming many children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigations as assisted by the New Zealand Customs Service and other law enforcement agencies in New Zealand. The prosecution was handled by Rachel Reames Stoddard, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-1517-PHX-DGC
RELEASE NUMBER: 2016-044_Frater
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Psychologist from Rio Rancho Sentenced to Probation for Federal Health Care Fraud ConvictionRead the Press Release
ALBUQUERQUE – Julee K. Huggins, 61, of Rio Rancho, N.M., was sentenced today in federal court in Albuquerque, N.M., to five years of probation for her conviction on healthcare fraud charges. Huggins also was ordered to pay $157,839.94 in restitution to Medicare and two private insurance carriers who were the victims of Huggins’ criminal conduct.
Huggins entered a guilty plea on Nov. 3, 2015, to a felony information charging her with healthcare fraud. At the time she committed the crime, Huggins was a licensed and practicing clinical psychologist who provided mental health counseling out of a practice in Rio Rancho.
In entering her guilty plea, Huggins admitted that between Jan. 2011 and Feb. 2014, she executed a scheme to fraudulently obtain money from three health care benefit programs, Medicare, which provides healthcare benefits to persons over 65 years of age and persons who are disabled, Presbyterian Health Plan and Blue Cross Blue Shield of New Mexico (collectively, the healthcare benefit programs). Huggins admitted perpetuating the scheme by submitting claims to the three healthcare benefit programs for counseling services that were never performed and by overbilling the programs. Huggins defrauded the three healthcare benefit programs of an aggregate of $157,839.94.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney Reeve L. Swainston.
President of Engineering Firm Admits to Bribing Elected Officials in Allentown and ReadingRead the Press Release
PHILADELPHIA – Court documents were unsealed today in relation to the guilty plea entered by Matthew McTish, 57, of Orefield, PA. McTish pleaded guilty on April 28, 2016 to one count of conspiracy to commit bribery offenses, announced United States Attorney Zane David Memeger. McTish faces a maximum possible sentence of five years in prison, a possible fine, three years of supervised release, and a $100 special assessment. U.S. District Judge Juan R. Sanchez scheduled a sentencing hearing for August 2, 2016.
McTish[1] was the president of an engineering firm which heavily relied on contracts with governmental organizations in Pennsylvania, including the cities of Allentown and Reading. Public Official #1, of Reading, PA, and Public Official # 3, of Allentown, PA, made clear to subordinates and donors that favorable official action would be withheld from certain donors who failed to provide satisfactory campaign contributions. By the same token, these elected officials directly and indirectly communicated to certain donors that they were expected to provide items of value, including campaign contributions, in return for certain past or prospective official actions in Reading and Allentown.
Public Official #1 and Public Official #3 identified certain engineering firms, including McTish’s, as promising targets for their pay to play schemes. Public Official #1 and Public Official #3 believed that these firms were particularly vulnerable to fundraising solicitations by elected city officials because of the firms’ reliance on municipal contracts and their desire to win such contracts in Reading and Allentown. Public Official #1 and Public Official #3 believed that for these firms, losing thousands of dollars to campaign treasuries was more acceptable than being shut out of consideration for millions of dollars’ worth of contracts. McTish admitted that under pressure from Public Official #1, Public Official #3 and their subordinates, he agreed to remit thousands of dollars of campaign contributions in order to keep his company viable for consideration for municipal contracts in Reading and Allentown. McTish agreed to continue raising such contributions for Public Official #1 even after he had lost re-election so that Public Official #1 could help McTish’s firm before leaving office. McTish also agreed to reward Mary Ellen Koval with a campaign contribution for her efforts in helping Public Official #3 trying to steer a contract to his company.
After paying campaign contributions to reward Koval and Public Official #3 for their efforts to steer an Allentown city contract to his company, McTish learned that the city had cancelled its plans for the contract. When McTish met with Public Official #3 to discuss the prospects of future engineering contracts with the City of Allentown, Public Official #3 asked for even more money – this time asking McTish to raise at least $21,600 before a federal campaign reporting deadline of June 30, 2015. Public Official #3 claimed that winning the federal campaign would allow him to provide greater assistance to McTish’s company. McTish was unhappy with Public Official #3’s demand but gave a $2,500 contribution in order to maintain his company’s viability for future contracts from the City of Allentown.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Joe Khan, Michelle Morgan, and Anthony Wzorek.
[1] McTish was identified in pleadings in related cases (and in paragraph 15 of his own Information) as “Donor #2.”
Pennsylvania State Senator and Pennsylvania Democratic Party Official Charged in Vote Buying SchemeRead the Press Release
A Pennsylvania State Senator and a Pennsylvania Democratic Party Official were charged in a federal indictment for their involvement in a bribery and fraud scheme related to the 2011 election for Democratic Ward Leader for Philadelphia’s Eighth Ward.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Lawrence “Larry” Farnese, 47, and Ellen Chapman, 62, both of Philadelphia, were charged with conspiracy, mail fraud, wire fraud, and violations of the Travel Act. According to the indictment, at the time of the alleged illegal conduct, Farnese was a Pennsylvania State Senator and a candidate for Democratic Ward Leader of the Eighth Ward and Chapman was a member of the Eighth Ward Democratic Committee.
The indictment alleges that from May to December 2011, Farnese and Chapman devised a bribe scheme in which Farnese paid $6,000 to a college study-abroad program for Chapman’s daughter in exchange for Chapman’s agreement to use her position with the Eighth Ward Democratic Committee to support Farnese in the upcoming ward leader election. According to the indictment, Chapman had originally intended to support a different candidate in the ward leader election. The indictment also alleges that Farnese made the $6,000 payment using campaign funds and disguised the true purpose of the payment by falsely listing it as a “donation” on the campaign’s finance report.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Jonathan Kravis and Peter Halpern of the Criminal Division’s Public Integrity Section.
Pair Pleads Guilty to Cocaine, Gun ChargesRead the Press Release
DANVILLE, VIRGINIA – Two men, who were part of a conspiracy to distribute cocaine, pled guilty yesterday in the United States District Court for the Western District of Virginia in Danville to Federal drug charges, United States Attorney John P. Fishwick Jr. announced today.
Osman Roverto Leiva Castellanos, 33, a citizen of Honduras and Virginio Aguirre Jimenez, a citizen of Mexico, each pled guilty yesterday in separate hearings to one count of conspiring to possess with the intent to distribute 500 grams or more of cocaine and one count of possessing a firearm in furtherance of a drug trafficking offense.
“Trafficking in illegal drugs is a serious offense that we will continue to work with our partners in law enforcement to take action against,” United States Attorney John P. Fishwick Jr. said today. “We will work to put those who distribute these addictive substances in prison and provide support for those in need of treatment and prevention services.”
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Danville Police Department, the Eden, North Carolina Police Department and the Rockingham County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Owner of Reisterstown Telemarketing Business Charged in Nationwide Office Supply ScamRead the Press Release
Baltimore, Maryland – A criminal complaint was filed charging Brian Keith Wallen, age 52, of Lutherville, Maryland with mail fraud arising from a nationwide fraudulent telemarketing scheme designed to ship unwanted and vastly over-priced light bulbs and cleaning supplies to thousands of businesses and non-profit organizations, including churches, schools and homeless shelters. The complaint was filed on May 4, 2016 and unsealed today.
The criminal complaint was 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; and Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division.
“We are asking for the public’s help in finding Brian Wallen,” said U.S. Attorney Rod J. Rosenstein. “Mr. Wallen reportedly left a note referencing his death, but law enforcement is still searching for him.”
According to the affidavit supporting the complaint, Wallen and others operated principally operated out of Maryland and Florida, and used a variety of company names to disguise the existence of the scheme and confuse victims. The conspirators used a company dubbed Midway Industries, as well as other related companies (collectively, the shell entities) to distribute products and collect the money from victims through fraud. Wallen owned and/or managed in part all of the shell entities, and oversaw the Reisterstown-based operations. Wallen, along with others, personally handled the accounts of large, repeat victims.
The affidavit alleges that from about 2010 to 2014, Wallen and others in the shell entities (collectively, the conspirators) telephoned authorized representatives of businesses and non-profit organizations, purportedly on behalf of individual shell entities. The authorized representatives were often maintenance employees. During these phone calls, the conspirators falsely stated that: the victim businesses had an existing business relationship with the shell entities; the purpose of the call was to provide an updated phone number or to send catalogues; and that the shell entities would send a “half box” of light bulbs, when in fact there were never any half boxes. The “half box” was a deceptive technique used to understate the volume and price of shipments, and disguise unwanted future shipments.
According to the affidavit, during the initial calls, conspirators regularly promised national store gift cards to the authorized representatives to induce them to place initial orders, or to provide to the shell entities additional company information or personal information, like the authorized representatives’ home address and personal phone number. The conspirators used the cell phone numbers and/or birthdays of the authorized representatives as “purchase order” numbers in order to lend legitimacy to later collections efforts. If the maintenance employee inquired about price, the caller falsely stated that he or she did not have the price in front of them, but that it would be at the corporate discount. In fact, the shell entities did not offer a corporate discount.
As long as the victims continued paying the shell entities’ invoices, the conspirators misrepresented in subsequent calls that the balance of the victim’s order or “regular seasonal order” had recently been shipped, despite no order having been made by the victim business, and no actual shipment having yet been sent. The conspirators called authorized representatives under the guise of different shell entities in order to repeat the process using a product other than light bulbs, often cleaning supplies. The conspirators often denied the relationship between the shell entities when questioned by victims.
The affidavit further alleges that on multiple occasions, when the authorized representative could not be reached by phone, the conspirators would simply send the product to the victim, without the victim placing an order. The conspirators referred to this practice as “just shipping.” Wallen was such a prolific user of the “just ship” method, his nickname within the shell entities was “Ship.” If the authorized representative had quit, been fired, or even passed away, they sent a product to the victim knowing that the victim would be unable to dispute the validity of the order.
According to the affidavit, Wallen and his co-conspirators ordered light bulbs and cleaning supplies from a company located in New Jersey (supplier). They instructed the supplier to ship the products to the victim without an invoice, and to send the invoices directly to the shell entities. The conspirators sent inflated invoices to the billing departments of the victims, which were often different departments from those of the authorized representatives.
The price billed to victims allegedly had no correlation to the product being sent. Rather, the price was determined and/or approved by a supervisor based on what they suspected the victim would pay without detecting the scheme. The invoices were regularly 900% above the prices the shell entities paid the supplier. After a victim had paid one invoice, the conspirators sent invoices to the victim that were sometimes greater than 8,000% above the supplier’s prices.
When victims did not remit payment, the shell entities repeatedly called the victims’ collection departments in order to force them to pay the inflated invoices. If the victim company continued to protest, they were told that the authorized representative was recorded ordering the product. The shell entities insisted that the fact that the authorized representative had provided his home address to receive a gift card indicated that the authorized representative had actually placed an order with Midway. Conspirators recorded the serial numbers of gift cards before they were sent to victims in order to track the balance and use the expenditures by the maintenance employee against the victim companies.
If the victim threatened to contact law enforcement or the Better Business Bureau, the conspirators offered to take back a product at either a discounted rate or for a re-stocking fee that was still substantially greater than the cost of the products purchased from the supplier.
From January 1, 2011 through June 2, 2014, a Federal Trade Commission (FTC) consumer protection database documented more than 500 complaints regarding the shell entities. On July 21, 2014, the FTC filed a civil complaint in federal court in Baltimore, Maryland alleging telemarketing and consumer fraud. The court temporarily enjoined the shell entities, and Wallen individually, from operating the businesses, and froze assets. Business operations were halted on July 23, 2014.
As a result of the fraud scheme, Midway and the shell entities allegedly sent fraudulent invoices to victim companies for more than $100 million and received more than $50 million in payments on those invoices.
Wallen faces a sentence of 20 years in prison.
On April 28, 2016, Wallen was reported missing. The Baltimore County Police Department is currently conducting a missing person investigation. Anyone with information concerning Wallen’s whereabouts is urged to call police at 410-307-2020. http://www.baltimorecountymd.gov/News/PoliceNews/iWatch/PoliceNeedHelpFindingMissingLuthervilleMan
A criminal complaint is not a finding of guilt. A defendant charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney and Harry M. Gruber, who are prosecuting the case.
Owner Admits Underground Sewage Dumping at Dunes Toy Storage in HoltvilleRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – May 10, 2016
SAN DIEGO –Daniel Williams of Arizona pleaded guilty today in federal court, admitting that he concealed the illegal underground disposal of sewage at a recreational vehicle (RV) storage location in Holtville, California.
In 2005, Williams formed a partnership known as Dunes Toy Storage with another individual. In entering his plea, Williams acknowledged that a septic leach system was installed at Dunes Toy Storage even though he had no authorization from the EPA, and the permit obtained from Imperial County specifically prohibited the use of leach lines.
Williams admitted that he was aware that the sewage was leaching out underground at the site from 2006 to 2015. Williams stated that even after he became aware of the federal felony prosecution of Glamis Dunes Storage for the same offense, he concealed the existence of the underground discharge at Dunes Toy Storage and did not bring it to the attention of the authorities. Over the last decade, hundreds of thousands of gallons of improper waste was discharged at the site.
“Pollutants that are improperly discharged can contaminate our water supplies and sicken or injure people and wildlife,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “That’s why it is imperative that we enforce environmental laws and hold polluters accountable. Today’s plea demonstrates that EPA and its law enforcement partners are committed to protecting public health and the environment.”
Williams is scheduled for sentencing before U.S. District Judge Janis L. Sammartino on August 5, 2016, at 9:00 a.m.
DEFENDANTS Criminal Case No. 16cr1003-JLS
Daniel Williams Age: 67 Littlefield, Arizona
SUMMARY OF CHARGES
Misprison of a Felony– Title 18, U.S.C., Section 4
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Bureau of Land Management, Office of Law Enforcement; U.S. Environmental Protection Agency, Criminal Investigations Division
Orange County Man Who Embezzled from Employer – while on Bond in another Federal Embezzlement Case – Pleads Guilty to Bank FraudRead the Press Release
SANTA ANA, California – An Orange County man has pleaded guilty to embezzling approximately $1.4 million from his employer, a crime he committed when he was pending sentencing in another embezzlement case involving another former employer.
Peter Suk Lee, 49, a resident of the City of Orange, pleaded guilty yesterday afternoon to a federal bank fraud charge and admitted that he embezzled company funds from Contempo Inc. USA, a family-owned, Los Angeles-based business that imports and distributes fashion accessories.
As a result of this week’s guilty plea and the earlier federal charges, Lee faces a statutory maximum sentence of 90 years in federal prison when he is sentenced by United States District Judge David O. Carter on August 15.
From August 2014 through September 2015, Lee was the controller at Contempo. During this time, Lee embezzled money by forging the signatures of the company officers on 92 unauthorized checks that were made out to him and several associates. The total value of these checks was $1.38 million. Lee admitted that he deposited $393,400 embezzled from Contempo into his personal TD Ameritrade account, and caused other embezzled funds to be wired to casinos for his use.
At the time, Lee was free on bond and awaiting sentencing after pleading guilty to wire fraud for embezzling money from another business. In that prior case, Lee admitted that he embezzled approximately $2.65 million from Glovis America, Inc., an Irvine-based automotive logistics company where Lee had been employed as the accounting manager.
In court on Monday, Lee also admitted that, between his stints at Glovis and Contempo, he embezzled from a third company. Lee specifically admitted that he stole approximately $70,000 from the Placentia-based Orion Technology, Inc.
“This defendant’s brazen theft of millions of dollars from three different employers in only a few years was extremely harmful to those companies,” said United States Attorney Eileen M. Decker. “That Mr. Lee continued to victimize employers while pending sentencing on fraud charges makes his actions all the more outrageous.”
This case was investigated by the Federal Bureau of Investigation.
Okaloosa County Father and Son Sentenced in Wire Fraud Scheme to Defraud Non-ProfitsRead the Press Release
PENSACOLA, FLORIDA – Anthony Floyd Hemphill, 39, and his father, William Hemphill, 58, both of Crestview, Florida, were sentenced today after pleading guilty in February 2016 to conspiracy to commit wire fraud in connection with a scheme to defraud non-profit organizations of more than $300,000. Anthony Hemphill was sentenced to 41 months in prison, to be served consecutive to another sentence he is currently serving, and William Hemphill to 5 years’ probation. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
During their pleas, the conspirators admitted that, between December 2013 and December 2014, they fraudulently represented that A.F.H. Construction LLC owned modular buildings that could be donated to non-profit organizations free of charge, if the non-profit organizations would agree to pay for the transportation and set up of the buildings. Using high pressure sales tactics, the conspirators persuaded the non-profit organizations to quickly wire advance payments for transportation and set up costs, ostensibly to prevent the modular buildings from being donated to other parties.
Once they had their victims’ money in hand, the Hemphills used delaying tactics and false statements to convince the victims that the modular buildings were in the process of being delivered and set up. In fact, no modular buildings were ever delivered.
During the conspiracy, the victims wired approximately $311,700 as advance payments for the transportation and set up costs. Anthony Hemphill used $51,000 of these payments to make a partial restitution payment that he owed in another federal criminal case in the Western District of Texas. Anthony Hemphill is currently serving a 41-month sentence imposed in the Texas case. He committed the conduct underlying the modular building fraud while on pre-trial release and/or as a fugitive in the Texas case.
In addition to the conspiracy charge, Anthony Hemphill pled guilty to wire fraud, and William Hemphill pled guilty to making a false statement to a federal agent.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kathryn D. Risinger prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Ohio Man Charged with April Robberies at Erie Bank, Gas StationRead the Press Release
ERIE, PA. – A former resident of Wickliffe, Ohio, has been indicted by a federal grand jury in Erie on charges of bank robbery and Hobbs Act robbery, United States Attorney David J. Hickton announced today.
The two-count indictment named Zachary Price, 33.
According to the indictment presented to the court, on April 24, 2016, Price robbed the Kwik Fill located at 3620 Peach Street, Erie, Pennsylvania. On April 25, 2016 Price robbed $2,000 from the Huntington Bank, located at 5808 Peach Street, Erie, Pennsylvania.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Erie Police Department and the Millcreek 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.