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9 May 2016
Pleasants County woman sentenced for role in manufacturing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Bonnie Jean Butler, 55, of St. Marys, West Virginia, was sentenced today to 30 months in prison for her role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Butler was among six individuals charged in June 2015 when a 19-count federal indictment disrupted a methamphetamine manufacturing operation in Pleasants County, West Virginia.
Butler was discovered in February 2014 in possession of various materials commonly used to manufacture methamphetamine. She pled guilty in August 2015 to one count of “Aiding and Abetting Possession of Material Used in the Manufacture of Methamphetamine.”
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The West Virginia State Police and the Pleasants County Sheriff’s Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Philadelphia Bank Employee Charged in Fraud and Identity Theft CaseRead the Press Release
PHILADELPHIA - Michael Tuffour, 27, of Philadelphia a was charged by Indictment, unsealed May 6, 2016, with one count of bank fraud and three counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that while he was working as a customer service representative for TD Bank, Tuffour abused his position of trust in numerous ways including: opening fraudulent accounts for co-conspirators so that they could deposit counterfeit checks into those accounts; helping the co-conspirators withdraw the cash before TD Bank discovered that the checks were fraudulent; wiring money from the fraudulent accounts before TD Bank discovered that the checks were fraudulent; and secretly stealing customer information that he sold to co-conspirators, who used it to manufacture false IDs and counterfeit checks that they then used to unlawfully access the customers’ accounts.
Tuffour faces a mandatory minimum term of two years in prison with a statutory maximum sentence of 36 years, a period of supervised release, a possible fine, and a $400 special assessment.
The case was investigated by the United States Secret Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Charged with Hacking Gas Company's ComputersRead the Press Release
PHILADELPHIA - Marc Fox, 44, of Shoemakersville, Pennsylvania, was charged today by Information with one count of intentionally causing damage to a computer, announced United States Attorney Zane David Memeger. The Information alleges that between September 11, 2015 and October 2, 2015, Fox sent unauthorized commands to a computer owned by UGI Utilities, Inc., a company that supplies natural gas to customers in Pennsylvania. The Information alleges that by sending these unauthorized commands, Fox intentionally changed the passwords and permissions for certain accounts on UGI’s computers. It is further alleged that Fox then sent commands to a UGI computer that caused the rerouting of emergency calls to UGI during certain time periods so that these emergency calls were not directed to the proper UGI telephone representatives, thus delaying the response to these high priority calls. The Information alleges that Fox’s computer intrusions caused more than $5,000 in damage and caused a threat to public safety.
If convicted the defendant faces a statutory maximum sentence of 10 years in prison, a possible fine, restitution to UGI, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parma man charged with sex trafficking of childrenRead the Press Release
Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Division, Northern District of Ohio, and Acting U.S. Attorney Carole S. Rendon announced the arrest of Richard Purnell, 54, of Parma.
Purnell has been charged in federal court with Sex Trafficking of Children, Title 18, U.S.C. Section 1591.
In November 2015, the FBI’s Child Exploitation Task Force became aware of an online advertisement for a “lovely college girl” who has a “thing for older men.” Photos were attached to this advertisement and appeared to indicate a female under the age of 18. An investigation ensued and agents confirmed that the “lovely college girl” was in fact 14 years of age, according to court documents.
A federal arrest warrant was obtained on May 6, 2016 and Purnell was taken into custody by the FBI’s Child Exploitation Task Force that evening at approximately 8:30pm in Parma, Ohio. The Child Exploitation Task Force is comprised of the Adult Parole Authority, Cleveland Metro Housing Authority, Cleveland Police Department and Cuyahoga County Sheriff’s Office. The Parma Police Department provided substantial assistance to this successful investigation and arrest.
Purnell has been held in the Parma jail since his arrest Friday night. He is scheduled to appear before federal Judge Parker today at 2:30 p.m.
A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any; their role in the offenses; and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
Any questions regarding this news release can be directed to SA Vicki D Anderson at the Cleveland Office of the FBI, 216-522-1400 or [email protected].
Owner of Santa Fe Springs Trucking Company Pleads Guilty to Dumping 11,000 Gallons of Waste Soap into San Gabriel RiverRead the Press Release
LOS ANGELES – A man who ran a trucking company pleaded guilty today to dumping 11,000 gallons of waste water and soap into a tributary of the San Gabriel River in Santa Fe Springs.
David Lee Flury, the 61-year-old owner and operator of Flury Industries, Inc., a Santa Fe Springs-based waste-hauling company, pleaded guilty to a felony charge of water pollution. United States District Judge Stephen V. Wilson set Flury’s sentencing hearing for August 15.
The San Gabriel River, one of the three most important waterways in Southern California, flows into the Pacific Ocean at Alamitos Bay between the cities of Long Beach and Seal Beach. Flury admitted that the City of Santa Fe Springs spent nearly $750,000 cleaning up the soapy waste that he illegally dumped into Los Coyotes Creek.
“Water is a resource that we cannot afford to waste or pollute in drought-stricken Southern California,” said United States Attorney Eileen M. Decker. “This defendant’s crime caused significant harm to the public, taxpayers and the environment.”
Flury had previously been indicted with multiple felony counts, including water pollution, mail and wire fraud, witness tampering, destruction of evidence and identity theft. The federal grand jury indictment alleged that Flury used interstate wire communications and the mail system to defraud approximately 17 customers out of more than $350,000. The indictment alleges that Flury told his customers that he would pick-up their various waste products and transport the waste for disposal at a facility licensed to receive and dispose of such waste products. Instead, Flury illegally dumped tens of thousands of gallons of waste products into the San Gabriel River and desert areas in Riverside County, according to the indictment.
As a result of today’s conviction, Flury faces a statutory maximum sentence of three years in prison and a $250,000 fine.
This case was investigated by the City of Santa Fe Springs Fire Department, the City of Santa Fe Springs Police Department, the Los Angeles Department of Public Works, the California Department of Toxic Substances Control, and the United States Environmental Protection Agency – Criminal Investigations Division.
Owner of Commercial Fishing Business and Local Sherrif’s Deputy Indicted in Scheme to Falsify Fishing RecordsRead the Press Release
BOSTON – The owner of one of the largest commercial fishing businesses in the United States and a Bristol County Sheriff’s Deputy were charged in connection with a long-running scheme involving submitting falsified records to the federal government to evade federal fishing quotas and then smuggling the profits to Portugal. The federal indictment charging the two men was unsealed today after the arrest of the Sheriff’s Deputy.
Carlos Rafael, 64, of Dartmouth, the owner of Carlos Seafood, Inc., was indicted on one count of conspiring to falsify reports submitted to the federal government, 25 counts of submitting falsified records and one count of bulk cash smuggling. Rafael was previously arrested on a criminal complaint filed in February 2016.
Antonio Freitas, 46, of Taunton, a Sheriff’s Deputy with the Bristol County Sheriff’s Office, was indicted on one count of bulk cash smuggling and one count of structuring the export of U.S. currency. Freitas was arrested this morning and will appear today in U.S. District Court in Worcester. The charges arose out of an undercover investigation in which federal agents posed as organized crime figures interested in buying Carlos Seaford. According to the indictment, from 2012 to January 2016, Rafael routinely lied to the National Oceanic and Atmospheric Administration (NOAA) about the quantity and species of fish his boats caught, in order to evade federal quotas designed to guarantee the sustainability of certain fish species.
As alleged in the indictment, during that period, Rafael misreported to NOAA approximately 815,812 pounds of fish, telling NOAA the fish was haddock, or some other abundant species subject to high quotas, when in fact the fish was cod, sole, or other species subject to strict quotas. After submitting false records to federal regulators, Rafael allegedly sold most of the fish to a wholesale business in New York City in exchange for bags of cash. During meetings with the undercover agents, Rafael allegedly said that in his most recent dealings with the New York buyer he received $668,000 in cash.
The indictment alleges that Rafael, with the assistance of Freitas – who was also a Department of Homeland Security Task Force Officer which gave him access to restricted areas of Logan Airport – smuggled at least some of that cash out of the United States to his native Portugal. The indictment alleges that, on Feb. 5, 2016, with assistance of another individual, Freitas smuggled $17,500 through airport security and later deposited the money in a Portuguese bank account belonging to Rafael.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Twenty-three of the charges of falsifying records submitted to the federal government carry the same potential sentence, while two counts, brought under a different statute, provide for a sentence of no greater than 20 years in prison and a fine of $250,000. The charges of bulk cash smuggling and monetary structuring provide a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Rear Admiral Linda L. Fagan, Commander of the First Coast Guard District; Timothy Donovan, Acting Assistant Director of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Philadelphia Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Andrew E. Lelling, of Ortiz’s Economic Crimes Unit, and David G. Tobin, of Ortiz’s Major Crimes Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of Bodybuilding Drug Companies Sentenced for Selling Misbranded DrugsRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Gavin Burns Smith, age 45, of New Port Richey, Florida, today to six months of home confinement followed by three years of probation for selling peptides to bodybuilders which were not approved by the FDA for human use. Judge Hazel also entered an order requiring Smith to forfeit $2,102,684.06, the value of the misbranded drugs subject to seizure.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Mark McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office.
“Non-FDA approved drugs may be dangerous and contain unknown and harmful ingredients.” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Office. “As we did in this case, we will continue to protect the public by bringing these peddlers of dangerous unapproved drugs to justice.”
According to his plea agreement, from 2010 to April 2012, Smith owned and operated Precision Peptides, located in Lutz, Florida; and from April 2012 to May 2015, he owned and operated DNA Peptides, located in New Port Richey, Florida. Smith placed advertisements on the companies’ websites and sold body-enhancing injectable drugs to individuals seeking to enhance their physiques. These drugs were not approved by the FDA for human use.
On August 22, 2012, law enforcement executed federal search warrants at Precision Peptides and DNA Peptides. At some time thereafter, Smith began operating DNA Peptides out of his residence and continuing to sell drugs using a different website to avoid detection by law enforcement.
Smith caused DNA Peptides and Precision websites to display numerous disclaimers stating that all products sold were for “research/laboratory use only.” Additionally, prior to purchasing the products from the website, each customer was asked to certify that he or she read the disclaimer that the “chemicals/materials for sale here are . . . not intended for human ingestion.” Smith used these disclaimers as a ruse to avoid FDA scrutiny.
He advertised his products and website extensively in bodybuilding magazines and conventions. Smith hired professional bodybuilders to promote his products and to claim that they personally experienced results from taking certain products he sold. He also provided information to customers, via the company websites and Facebook pages, on how to self-administer drugs, including recommended dosages and placement of the injections, in order to best produce the desired bodily enhancements.
The drugs Smith sold included Growth Hormone Releasing Peptide-2, Growth Hormone Releasing Peptide-6, Melanotan II, Growth Hormone Releasing Hormone, Ipamorelin, Human Growth Hormone Fragment, Mechano Growth Factor, and Dehydroepiandrosterone, none of which the FDA has approved for use in humans.
On seven occasions from November 21, 2011 to March 12, 2015, Smith sold misbranded drugs to an undercover officer and shipped those drugs from Florida to locations in Laurel, Columbia and Beltsville, Maryland. None of the drug shipments included any directions for use of the products. Additionally, although the labels stated that the products were for research only, Smith intended that the products be consumed by humans.
United States Attorney Rod J. Rosenstein commended the FDA Office of Criminal Investigations for its work in the investigation and thanked Assistant U.S. Attorneys James A. Crowell IV and Kelly O'Connell Hayes, who prosecuted the case.
Orchestrator of More Than 40 Pump and Dump Schemes and Secret Owner of Offshore Brokerage Firm Pleads Guilty To$250 Million Money Laundering SchemeRead the Press Release
BROOKLYN, N.Y. – Earlier today, Gregg R. Mulholland, a dual U.S. and Canadian citizen and secret owner of Legacy Global Markets S.A. (Legacy), an offshore broker-dealer and investment management company based in Panama City, Panama, and Belize City, Belize, pleaded guilty to money laundering conspiracy for fraudulently manipulating the stocks of more than 40 U.S. publicly-traded companies and then laundering more than $250 million in profits through at least five offshore law firms. Pursuant to his plea agreement with the government, Mulholland has agreed to forfeit, among other things, a Dassault-Breguet Falcon 50 aircraft, a Range Rover Defender vehicle, two real estate properties in British Columbia, and funds and securities on deposit at more than a dozen bank and brokerage accounts. When sentenced, Mulholland faces up to 20 years in prison.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York (IRS-CI); and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations, New York (HSI).
“Mulholland’s staggering fraud perpetrated on the investing public was built on an elaborate offshore shell game, which included his secret ownership of an offshore brokerage firm. Through manipulative trading, Mulholland generated profits of more than $250 million and used a corrupt lawyer to launder the proceeds into the United States to pay his fraudulent network of stock promoters and broker-dealers,” stated United States Attorney Capers. “We are steadfast in our commitment to protect the investing public and will vigorously prosecute those who seek to abuse the financial markets through fraudulent means.” Mr. Capers thanked the Securities and Exchange Commission (SEC), the Department of Justice’s Office of International Affairs (OIA), the Department of State’s Diplomatic Security Service (DSS), and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance in the investigation.
“Mulholland pleaded guilty today for his role in a stock manipulation and profit hiding scheme totaling more than $250 million. Making sure our markets are fair to all investors and bringing charges against those who profit illegally remains a top priority for the FBI,” stated FBI Assistant Director-in-Charge Rodriguez.
“This investigation highlights the government’s ability and resolve to combat global money laundering, in this case, the laundering of illicit proceeds from a stock manipulation scheme,” stated IRS-CI Special Agent-in-Charge Kitchen. “Prospective money launderers should take note of Mr. Mulholland’s conviction and think twice about the consequences of such actions. The same holds true for individuals who attempt to criminally circumvent IRS reporting requirements regarding foreign accounts, as their actions will attract the attention of IRS-Criminal Investigation.”
“Laundering more than a quarter of a billion dollars, this defendant used multiple schemes including manipulating the stocks of more than 40 companies in order to line his pockets at the expense of the U.S. financial system. HSI remains committed to using its unique authorities to arrest those that seek to conceal and launder illicit proceeds, causing harm to our economy,” said Special Agent-in-Charge Melendez.
Between 2010 and 2014, Mulholland controlled a group of individuals (the Mulholland Group) who together devised three interrelated schemes to: (1) induce U.S. investors to purchase stock in various thinly-traded U.S. public companies through fraudulent promotion of the stock, concealment of their ownership interests in the companies, and fraudulent manipulation of artificial price movements and trading volume in the stocks of those companies; (2) circumvent the IRS’s reporting requirements under the Foreign Account Tax Compliance Act (FATCA); and (3) launder the fraudulent proceeds from the stock manipulation schemes to and from the United States through five offshore law firms. Through these schemes, the Mulholland Group laundered more than $250 million in fraudulent proceeds.
To facilitate the interrelated schemes, the Mulholland Group used shell companies in Belize and Nevis, West Indies, which had nominees at the helm. This structure was designed to conceal the Mulholland Group’s ownership interest in the stock of U.S. public companies, in violation of U.S. securities laws, and enabled the Mulholland Group to engage in more than 40 “pump and dump” schemes. For example, this structure enabled the Mulholland Group to manipulate the stock of Cynk Technology Corp, which traded on the U.S. OTC markets under the ticker symbol CYNK. Using aliases such as “Stamps” and “Charlie Wolf,” Mulholland was intercepted on a court-authorized wiretap on May 15, 2014, admitting to his ownership of “all the free trading” or unrestricted shares of CYNK. Prior to this conversation between Mulholland and his trader at Legacy, there had been no trading in CYNK stock for 24 trading days. Over the next two months, the stock of CYNK rose from $0.06 per share to $13.90 per share, a more than $4 billion stock market valuation for a company that had no revenue and no assets.
Mulholland used the services of a U.S.-based lawyer to launder the more than $250 million generated through his stock manipulation of CYNK and other U.S. companies – directing the fraud proceeds to five law firm accounts and transmitting them back to members of the Mulholland Group and its co-conspirators. These concealment schemes also enabled Mulholland to evade reporting requirements to the IRS.
Today’s guilty plea took place before United States District Judge I. Leo Glasser.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn Kasulis, Winston Paes, and Michael Keilty are in charge of the prosecution. Assistant United States Attorney Brian Morris of the Office’s Civil Division will be responsible for the forfeiture of assets.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendant:
GREGG R. MULHOLLAND
Age: 46
San Juan Capistrano, California
Vancouver, CanadaEDNY Docket No. 14-CR-476 (ILG)
Office on Violence Against Women Announces New Program to Support Tribal Governments Exercise Special Domestic Violence Criminal JurisdictionRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) today released a grant solicitation launching the new Grants to Tribal Governments to Exercise Special Domestic Violence Criminal Jurisdiction Program (Tribal Jurisdiction Program). This new program was authorized in the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) and received its first appropriation in fiscal year 2016.
VAWA 2013 recognizes tribes’ inherent power to exercise “special domestic violence criminal jurisdiction” (SDVCJ) over certain defendants, regardless of their Indian or non-Indian status, who commit acts of domestic violence or dating violence or violate certain protection orders in Indian country. Specifically, tribes can investigate, prosecute, convict and sentence Indians and non-Indians who assault Indian spouses or dating partners or violate a protection order in Indian country.
“VAWA 2013 closed jurisdictional gaps that had long compromised American Indian and Alaska Native women’s safety and access to justice,” said Principal Deputy Director Bea Hanson for OVW. “And this new grant program is another step in the department’s ongoing effort to help tribes across the country make full use of the SDVCJ authority.”
The Tribal Jurisdiction Program encourages the coordinated involvement of the entire tribal criminal justice system and victim service providers to incorporate systemic change that ensures victim safety and offender accountability. Funds from the Tribal Jurisdiction Program can be used to:
- strengthen tribal criminal justice systems to assist Indian tribes in exercising SDVCJ;
- provide indigent criminal defendants with the effective assistance of licensed defense counsel, at no cost to the defendant, in criminal proceedings in which a participating tribe prosecutes a crime of domestic violence or dating violence or a criminal violation of a protection order;
- ensure that, in criminal proceedings in which a participating tribe exercises SDVCJ, jurors are summoned, selected and instructed in a manner consistent with all applicable requirements; and
- accord victims of domestic violence, dating violence and violations of protection orders rights that are similar to the rights of a crime victim described the federal Crime Victims’ Rights Act, consistent with tribal law and custom.
OVW anticipates making 36-month awards in the range of $300,000 to $450,000. Applications are due by 11:59 p.m. Eastern Time (E.T.) on June 20.
OVW will conduct a pre-application webinar on Wednesday, May 25, 4:00 – 5:00 p.m. E.T. During this webinar, OVW staff will review the FY 2016 Tribal Jurisdiction Program solicitation and grant requirements followed by a brief question and answer session. To register, e-mail [email protected] no later than Monday, May 23.
All OVW open solicitations are posted at www.justice.gov/ovw/open-solicitations.
OCDETF District Specific TrainingRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands (NMI), announced that Organized Crime Drug Enforcement Task Force (OCDETF) trainers provided training to law enforcement partners on Guam and in Saipan, NMI. The OCDETF training was conducted by Lela Johnson, Attorney Advisor from the OCDETF Executive Office in Washington, D.C.; Mark Sweeting, Deputy United States Marshal from Chicago, Illinois; Oscar F. Hagelsieb, Deputy Director, OCDETF Fusion Center in Fairfax, Virginia; Karen D. Beausey, Assistant U.S. Attorney’s Office in Boston, Massachusetts; Jamie Harrison, Special Agent with the IRS in San Diego, California; and Joseph (Josh) Green, Deputy Chief, Criminal Enterprises Section of the U.S. Attorney’s Office in San Diego, California. The training was held at the U.S. Attorney’s Office in Guam on May 4, 2016, and in Saipan on May 5, 2016. The training was attended by approximately 60 local and federal law enforcement officers in Guam and Saipan.
The training topics included Developing a Financial Case; OCDETF Resources; Information Sources for Financial Investigations; OCDETF Fusion Center; Exploiting Financial Evidence and Charges to Improve the Drug Case; Traditional and Alternative Money Laundering Charges; Obtaining Foreign Records; Preparing and Presenting Financial Evidence at Trial; Plea Agreements; Search and Seizure Warrants; and Case Study of a Successful Investigation.
The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.
OCDETF investigations involve a focused multi-agency, multi-jurisdictional task force that investigates and prosecutes the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
An OCDETF investigation involves federal agents and local law enforcement officers of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigations (FBI), the Internal Revenue Service–Criminal Investigations (IRS-CI), the U.S. Coast Guard Criminal Investigative Service (CGIS), the U.S. Department of Homeland Security Investigations (HSI), the U.S. National Oceanic Atmosphere Administration (NOAA), the U.S. Marshal’s Service, the U.S. Postal Inspection Service (USPIS), the Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), the CNMI Department of Public Safety, the CNMI Division of Customs, and other law enforcement partners.
Participants at the OCDETF Training held in Guam
U.S. Attorney Alicia Limtiaco shows appreciation to the trainers for their roles in the OCDETF Training held in Guam and Saipan, NMI
Participants at the OCDETF Training held in Saipan, NMINorthern West Virginia law enforcement officers recognized for outstanding investigationsRead the Press Release
WHEELING, WEST VIRGINIA – A variety of local, state, and federal law enforcement officers were recognized for outstanding contributions to regional law enforcement objectives and prosecutions during an awards ceremony today hosted by United States Attorney William J. Ihlenfeld, II.
Officers throughout the Northern District of West Virginia were honored today, including:
2016 Outstanding Prescription Drug Investigative Effort Award
The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, was recognized for its investigative efforts in the cases of United States v. Edita Milan, M.D. and United States v. Mario Blount. Milan, a physician with a medical practice in Bridgeport, West Virginia, and Blount, a licensed pharmacist and former mayor of Bridgeport, conspired to unlawfully distribute prescription painkillers. Milan was sentenced in May 2015 to 60 months in prison. Blount was sentenced in February 2015 to 36 months in prison.
Maryland Natural Resources Police Office Barry D. Ball was recognized for his investigative efforts in the case of United States v. Tressie Duffy, M.D. Duffy, a physician in Martinsburg, West Virginia, repeatedly signed blank prescription orders and allowed unlicensed members of her staff to issue prescriptions for narcotic medications to patients that had not been seen by a physician. Duffy is awaiting sentencing after she pled guilty in December 2015 to seven counts of “Distribution of Oxycodone.”
2016 Outstanding Drug Interdiction Award
The Mountaineer Highway Interdiction Team was recognized for its investigative efforts in the case of United States v. Shawn McClain. McClain was sentenced in March 2015 to 120 months in prison after he admitted to traveling from Ohio into West Virginia to sell heroin.
2016 Outstanding Drug Investigative Effort Award
The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, was recognized for its investigative efforts in the case of United States v. Brian Hall, et. al. Hall coordinated an interstate heroin trafficking operation in which heroin was transported from Maryland to locations in Pennsylvania, Virginia, and West Virginia. The drug distribution network was disrupted in June 2015 by a 163-count federal indictment targeting 41 defendants. Forty of the defendants have been convicted in federal court. Hall was sentenced in February 2016 to 100 months in prison for orchestrating the heroin trafficking scheme.
West Virginia State Police Sergeant Charles T. Kessel was recognized for his investigative efforts in the case of United States v. Noel Barrera Silva. Silva, a Mexican national living in Moorefield, West Virginia, was sentenced in May 2016 to 78 months in prison after he was discovered in possession of approximately four pounds of methamphetamine.
2016 Outstanding Firearm Investigative Effort Award
Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent Matthew H. Bassett was recognized for his investigative efforts in the case of United States v. Jarrud Dixon, et. al. Throughout 2013 and 2014, Dixon conspired with other individuals, including a licensed firearms dealer in Pocahontas County, West Virginia, to unlawfully transport firearms across state lines from West Virginia into Maryland. Dixon was convicted in February 2016 and is awaiting sentencing.
2016 Outstanding Healthcare Fraud Investigative Effort Award
Department of Health and Human Services Office of Inspector General Special Agent Scott A. Noullet and Department of Defense Office of Inspector General Special Agent Jennifer L. Jezewski were recognized for their investigative efforts in the case of United States v. Samer Kuzbari, M.D. Kuzbari, a physician in Fairmont, West Virginia, recently paid $440,232 to settle claims that he fraudulently requested reimbursement for medical services that were not actually rendered.
2016 Outstanding Investigative Effort Award
Federal Bureau of Investigation Special Agent Edward P. Ryan and Wheeling Police Department Detective Brandi N. Alderman were recognized for their investigative efforts in the case of United States v. Kevin Wick. Wick repeatedly traveled across state lines from West Virginia to Ohio for the purpose of engaging in unlawful sexual conduct with five minor victims. He was convicted in January 2106 and is awaiting sentencing.
The United States Attorney’s Awards ceremony was held at the United States Courthouse in Wheeling today and included remarks from Senior U.S. District Judge Frederick P. Stamp, Jr. and U.S. Attorney Ihlenfeld.
Minneapolis Man Sentenced for Transporting Women for ProstitutionRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on May 9, 2016, Ronnel Johnson, 31, Minneapolis, Minn., was sentenced before U. S. District Judge Ralph R. Erickson to serve three (3) years and four (4) months years in prison for Transportation for the Purposes of Prostitution. Judge Erickson also ordered that Johnson serve five (5) years supervised release and he must pay a $100 special assessment to the Crime Victims’ Fund.
This case came to the attention of law enforcement after the North Dakota Highway Patrol stopped a rental vehicle driven by Johnson on I-94 near Valley City, North Dakota. Johnson and his female passenger were traveling from Minneapolis, Minnesota, to Williston, North Dakota. When interviewed by law enforcement during the traffic stop, Johnson and his passenger gave conflicting stories about the purpose of their trip to Williston. A subsequent search of the vehicle revealed cell phones which contained text messages sent and received by Johnson which revealed that he was involved in directing prostitution. Johnson’s cell phone also revealed sexually explicit photographs of at least two women that were identical to photographs that ran in Backpage.com advertisements for commercial sex in western North Dakota.
One such victim depicted in photographs that were recovered from Johnson’s cell phone and the Backpage.com advertisement reported that Johnson had previously transported her to Williston, North Dakota, for the purpose of prostitution.
This case was investigated by the North Dakota Highway Patrol, North Dakota Bureau of Criminal Investigation, Minneapolis Police Department, and the Federal Bureau of Investigation.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
Mexican citizen sentenced to 57 months in prison for illegally reentering the countryRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a man from Mexico was sentenced last week to 57 months in prison for re-entering the United States after removal.
Francisco Hernandez-Urtusoastigui, 37, of Sinaloa, Mexico, was sentenced Thursday by U.S. District Judge Patricia Minaldi on one count of illegal re-entry of a removed alien. According to the December 2, 2016 guilty plea, Lake Charles Police stopped the defendant for a traffic violation on July 28, 2015. He did not have identification and admitted to being in the country illegally. Hernandez-Urtusoastigui has been deported at least five times. He also has a previous federal conviction in 2009 and in 2012.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
Mexican Mafia Member who Controlled Latino Street Gangs in Orange County Sentenced to 15 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A longtime member of the Mexican Mafia prison gang who controlled Latino street gangs in Orange County for at least three decades was sentenced today to 15 years in federal prison after being found guilty earlier this year of federal racketeering offenses.
Peter Ojeda, 74, was sentenced this morning by United States District Judge James V. Selna, who said the defendant, notwithstanding his age, still represented a “danger to the community.”
A federal jury in January found Ojeda guilty of two offenses: conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to commit violent crimes in aid of racketeering. The jury found that Ojeda ordered murders and assaults while incarcerated in federal prison for a prior racketeering conviction.
Ojeda, who is also known as “Sana” and “The Big Homie,” has been in federal custody since he was indicted in the prior racketeering case in 2005.
“Ojeda is a career criminal and a Mexican Mafia leader, which means he is intimately familiar with the violence, drug trafficking, and extortion that fuels this criminal organization,” said United States Attorney Eileen M. Decker. “Prior criminal cases against Mr. Ojeda have not had any deterrent effect, but today’s sentence makes it unlikely that Mr. Ojeda will ever be able to walk freely on the streets where his criminal organization has caused so much harm.”
Ojeda was convicted by a jury that heard evidence during a two and half month trial before the United States District Court in Santa Ana. The jury found that both conspiracies involved plots to murder other gangsters as part of a turf war with a rival Mexican Mafia member who attempted to assert control over local street gangs after Ojeda was imprisoned in his prior case.
In relation to the RICO conspiracy, the jury found that Ojeda was involved in the operation and management of the Mexican Mafia’s activities in Orange County, which included conspiring to commit murder, extortion, and narcotics trafficking. Ojeda ordered Latino street gangs in Orange County to pay “taxes” that consisted of a portion of the proceeds the gangs earned from various criminal activities, including drug trafficking. In return, gang members were permitted to exert influence over their neighborhoods and territories and seek protection or assistance from the Mexican Mafia.
Ojeda’s girlfriend, Suzie Rodriguez, 53, was also found guilty in the RICO and VICAR conspiracies for acting as a messenger between Ojeda and local gang leaders while Ojeda was housed in a federal prison in Pennsylvania. During the trial, prosecutors argued that Rodriguez acted as Ojeda’s eyes, ears, and voice on the streets of Orange County. Judge Selna is scheduled to sentence Rodriguez on June 6, 2016.
The Mexican Mafia is a powerful and violent prison gang that controls drug distribution and other illegal activities within the California penal system and on the streets of Southern California by organizing Latino street gang members for the purpose of establishing a larger network for the Mexican Mafia’s illegal activities. If a street gang does not comply with the demands of the Mexican Mafia, the prison gang will order the assault or murder the offending gang’s members, whether they are in custody or on the streets.
In the prior federal case, Ojeda pleaded guilty to conspiring to violate RICO and conspiring to distribute narcotics. In late 2006, he was sentenced to 14 years in federal prison. It was while in federal prison that he participated in the subsequent conspiracy that led to his indictment, conviction, and today’s sentencing.
Ojeda’s conviction was the result of Operation “Black Flag,” an investigation conducted by the Santa Ana Gang Task Force. As a result of the investigation, 59 defendants were convicted on federal charges, and another 40 defendants were prosecuted by the Orange County District Attorney’s Office.
The Santa Ana Gang Task Force is made up of agents and officers with the Federal Bureau of Investigation; the Santa Ana Police Department; the Orange County Sheriff’s Department; the Bureau of Alcohol, Tobacco and Firearms and Explosives; and the California Department of Corrections and Rehabilitation. The Anaheim Police Department, the Los Angeles Sheriff’s Department and the United States Bureau of Prisons provided substantial assistance.
Media AdvisoryRead the Press Release
There will be a press conference held on Tuesday, May 10, 2016, at 2:00 p.m. at the United States Attorney’s Office, 111 7th Avenue SE, Cedar Rapids, Iowa, 52401. Randall C. Thysse, Special Agent in Charge of the Omaha Office of the Federal Bureau of Investigation (FBI) and others will discuss the arrests and search warrants executed at various locations across Iowa and Wisconsin during a multiagency investigation of a suspected methamphetamine ring.
The investigation is coordinated through the Organized Crime Drug Enforcement Task Force program of the United States Department of Justice and is being investigated by the FBI, Iowa Division of Narcotics Enforcement, Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff's Office; Black Hawk County Sheriff's Office; La Porte City Police Department; Evansdale Police Department; Hudson Police Department), Mid Iowa Drug Task Force (Marshalltown Police Department; Marshall County Sheriff's Office; Tama County), and Dubuque Drug Task Force (Dubuque Police Department; Dubuque County Sheriff's Office).
Press releases and interview opportunities will be available. Follow us on Twitter @USAO_NDIA.
Marion Man Pleads Guilty to Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A Marion, Virginia man, who conspired with others to distribute methamphetamine, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to Federal drug trafficking charges, United States Attorney John P. Fishwick announced today.
Jason Dee Howell, 36, of Marion, Virginia, pled guilty today to one count of conspiring to distribute more than 500 grams of a mixture containing methamphetamine.
“Methamphetamine continues to be a growing threat throughout the Western District of Virginia,” United States Attorney John P. Fishwick Jr. said today. We will continue to work with our local, state and federal law enforcement partners to combat the rising tide of methamphetamine abuse in our communities.”
At sentencing, Howell, faces a mandatory minimum sentence of ten years in prison and a maximum statutory sentence of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Man Arrested at Nudist Park in Kansas Charged in Boston with Child PornRead the Press Release
KANSAS CITY, KAN. – An Olathe man arrested at a nudist park near Leavenworth appeared in U.S. District Court in Kansas City, Kan., Monday on child pornography charges.
Christopher Jon Saemisch, 58, Olathe, Kan., is charged in federal court in Boston with one count of distributing child pornography. He was arrested May 6 at the Gaea Retreat Center near Leavenworth, Kan.
A criminal complaint and affidavit filed in federal court in Boston alleges Saemisch, who is a registered sex offender, used the Internet to distribute child pornography to an inmate in the federal Bureau of Prisons’ custody at FMC-Devans in Ayer, Mass. The inmate has been incarcerated since 1977 following convictions for child exploitation offenses.
The affidavit alleges that in emails to the inmate Saemisch said he was collecting child pornography and wanted to travel to Europe to have sex with children. The affidavit alleges Saemisch used code words in his communication including “antiques” for child pornography and “puppies” for children.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Department of Homeland Security investigated. The U.S. Attorney’s Office for the District of Massachusetts is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
MS-13 Gangsters Convicted of Multiple Murders and Attempted MurderRead the Press Release
ALEXANDRIA, Va. – Six members of the street gang La Mara Salvatrucha, or MS-13, were convicted today by a federal jury for their roles in three murders and one attempted murder in Northern Virginia, among other charges.
“These violent gang members brutally murdered three men and attempted to murder a fourth,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Extreme violence is the hallmark of MS-13, and these horrific crimes represent exactly what the gang stands for. This was a highly complicated, death penalty eligible case with 13 defendants and more than two dozen defense attorneys. To say I am proud of our trial team and investigative partners is an understatement. I want to thank them for their terrific work on this case and for bringing these criminals to justice.”
“The defendants terrorized our local communities with senseless, depraved acts of threats, intimidation and violence,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “They murdered in the name of MS-13, but as this jury’s verdict makes clear, no gang can protect them from facing justice for their crimes. This verdict sends a clear message that the FBI will hold violent gangs and murderers fully accountable for their actions. I would like to thank the agents, analysts and prosecutors for their tireless efforts to eradicate gang violence in our communities.”
A total of 13 defendants were charged in this case. Of those, six defendants went to trial and were convicted of all charges. Six defendants pleaded guilty prior to trial, and one defendant was severed from the case and will have a separate trial at a later date. Please see the table at the end of this press release for additional information on each defendant.
According to court records and evidence presented at trial, on Oct. 1, 2013, Jose Lopez Torres, Jaime Rosales Villegas and others drove to Gar-Field High School in Woodbridge to murder a fellow gang member. However, one of the gang members in the car had not only alerted police to the murder plot, he also made recorded phone calls and wore a body wire to a meeting where the gang members, including Pedro Anthony Romero Cruz, who participated from prison on a contraband cell phone, planned the murder. The gang members’ vehicle was under surveillance that night, the victim had been warned to not be at school, and the informant was wearing a body wire.
According to court records and evidence presented at trial, on Oct. 7, 2013, Torres, Omar DeJesus Castillo, Juan Carlos Marquez Ayala, Araely Santiago Villanueva, Jose Del Cid, and three others murdered fellow gang member Nelson Omar Quintanilla Trujillo. The gang believed Trujillo was a snitch, and so the gang members lured him to Holmes Run Park in Falls Church, and brutally killed him by stabbing him with knives and slashing him with a machete. When they were done they buried Trujillo in a shallow grave. Several gang members returned a short time later and, with the assistance of Alvin Gaitan Benitez, reburied the body of Trujillo.
According to court records and evidence presented at trial, on March 29, 2014, Castillo, Benitez, Christian Lemus Cerna, Manuel Ernesto Paiz Guevara, Villanueva, Del Cid, and one other murdered Gerson Adoni Martinez Aguilar, a gang recruit, for breaking gang rules. Like Trujillo, the gang members lured him to Holmes Run Park and killed him. They stabbed him repeatedly, cut off his head, and then buried him in a shallow grave.
According to court records and evidence presented at trial, on June 19, 2014, Jesus Alejandro Chavez, Del Cid, and Genaro Sen Garcia murdered Julio Urrutia. Several gang members including Chavez, who had been released from prison eight days earlier, were out looking for rival gang members when they approached a group of young men, flashed their gang signs, and challenged them about their gang affiliation. During the exchange Chavez pulled out a gun and shot Urrutia in the neck at point blank range.
Each defendant convicted at trial faces a mandatory sentence of life in prison when sentenced. Villegas and Cruz face a maximum sentence of 10 years in prison on the conspiracy to commit murder charge, in addition to a consecutive minimum sentence of 10 years in prison for possession of a firearm in furtherance of a crime of violence. Villegas also faces a maximum sentence of 10 years in prison on the attempted murder charge. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Chief of Police, Fairfax County Police Department; Earl L. Cook, Chief of Police, Alexandria City Police Department; and Stephan M. Hudson, Chief of Police, Prince William County Police Department, made the announcement after the verdict was accepted by U.S. District Judge Gerald Bruce Lee.
Assistant U.S. Attorneys Julia K. Martinez and Tobias D. Tobler are prosecuting the case. The case was investigated by the FBI’s Washington Field Office, the Fairfax County Police Department’s Gang Investigations Unit, the Prince William County Police Department, and the Alexandria City Police Department.
The case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-306.
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Name
Age, Hometown
Charges Convicted of
Sentence or
Sentencing Date
Pedro Anthony Romero Cruz
28, unknown
Conspiracy to Commit Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
July 15
Jose Lopez Torres
26, Falls Church
Conspiracy, Attempted, and Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
August 5
Jaime Rosales Villegas
31, Richmond
Conspiracy and Attempted Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
May 20
Juan Carlos Marquez Ayala
22, Falls Church
Murder in Aid of Racketeering
June 3
Omar Dejesus Castillo
26, Arlington
Two Counts of Murder in Aid of Racketeering
August 12
Alvin Gaitan Benitez
23, Falls Church
Murder in Aid of Racketeering, Accessory After the Fact
September 9
Christian Lemus Cerna
20, Falls Church
Murder in Aid of Racketeering
September 9
Araely Santiago Villanueva
18, Falls Church
Two Counts of Murder in Aid of Racketeering
Life sentence
Manuel Ernesto Paiz Guevara
21, Falls Church
Murder in Aid of Racketeering
September 9
Jose Del Cid
18, Alexandria
Two Counts of Murder in Aid of Racketeering
Two life sentences
Jesus Alejandro Chavez
25, Alexandria
Murder in Aid of Racketeering; Use of a Firearm During a Crime of Violence Resulting in Death; Felon in Possession of a Firearm
August 5
Genaro Sen Garcia
19, unknown
Murder in Aid of Racketeering
Life sentence
Lodi Oncologist and Office Administrator Pay $300,000 to Settle False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — A Lodi oncologist and his wife, who served as the doctor’s office administrator, have paid the United States $300,000 to settle allegations that they improperly billed Medicare for certain chemotherapy drugs purchased from an unlicensed foreign pharmaceutical distributor, Acting United States Attorney Phillip A. Talbert announced today.
The United States alleged that, between October 2010 and May 2011, Dr. John F. Kiraly and Rena Kiraly billed and received reimbursement from Medicare for such drugs in violation of the federal False Claims Act. Specifically, the Kiralys purchased chemotherapy drugs from Warwick Healthcare Solutions Inc., also known as Richards Pharma, a former United Kingdom-based drug distributer that distributed non-FDA approved drugs throughout the United States. The Kiralys administered certain of these drugs to their patients, billing Medicare. One medication they purchased from Warwick was Altuzan, a drug not approved by the FDA. In addition, the FDA tested a batch of Altuzan that the Kiralys had purchased from Warwick and determined that it was counterfeit, lacking the active ingredient bevacizumab.
“Our District has now pursued and resolved False Claims Act allegations against three doctors for improperly billing Warwick drugs to public insurers,” said Acting U.S. Attorney Talbert. “These cases demonstrate the commitment of our district to preserving the integrity of federal health care programs and ensuring that doctors participating in such programs provide their patients with safe and effective care.”
“Patients getting life-saving prescriptions from their doctors must be able to trust that their medicines have been FDA-proven as safe and effective,” said Steven Ryan, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Our investigators tirelessly pursue those who ignore requirements protecting patient health in order to increase profits.”
“Patients receiving cancer treatment drugs should be able to trust that these drugs have been the subject of the FDA-approval process, which requires that the drugs have been proven to be safe and effective for treating their medical conditions,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “The FDA will continue its vigilance over the prescription-drug supply chain to ensure that the drugs reaching patients have been proven to be both safe and effective, and that those who attempt to circumvent the agency’s oversight will be brought to justice.”
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the FDA’s Office of Criminal Investigations. Assistant United States Attorney Vincente A. Tennerelli represented the United States in this matter. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Leader of a Baltimore Drug Organization Sentenced to over 15 Years in Prison for Conspiring to Distribute over 1,000 Kilograms of Marijuana and to Launder Drug ProceedsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Matthew Nicka, age 43, of Baltimore today to 188 months in prison, followed by five years of supervised release, for conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering. Judge Titus also entered a forfeiture order requiring Nicka to pay a money judgment of $15 million, which represents the proceeds of the offense.
Nicka, his wife, Gretchen Peterson, and co-conspirator David D’Amico, had been fugitives since the indictment was returned in December 2010. Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico was extradited from Colombia, South America.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to Nicka’s plea agreement and other court documents, Nicka, Peterson and D’Amico were part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore on March 18, 2009. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $20,000 in cash, 31 cell phones, documents regarding a plane purchased for $450,000, tally sheets showing over $14.5 million in marijuana sales, four money counters and false identifications.
As part of the conspiracy, Nicka, D’Amico and their co-conspirators obtained large quantities of marijuana grown in Canada and northern California, which they transported by plane and tractor trailer, to warehouses in Maryland. The marijuana was then divided for distribution in Maryland, Pennsylvania, Louisiana, Kansas, Florida, Ohio, North Carolina, Georgia and elsewhere. The defendants used multiple cellular telephones to avoid detection by law enforcement, as well as aliases and false identifications to conceal their activities. Nicka supervised and directed the conspirators’ activities, recruited conspirators and obtained marijuana in exchange for bulk cash payments, while D’Amico oversaw the day-to-day operations, received orders for marijuana, collected money, arranged for the purchase, operation and rental of planes used to transport marijuana and cash, arranged for the transportation and storage of marijuana, and transported bulk cash payments to marijuana suppliers. Gretchen Peterson received orders for marijuana, transported currency, delivered marijuana, and arranged for deliveries of marijuana to mid-level dealers. Nicka, D’Amico and Peterson also counted drug proceeds with other conspirators at a stash house in Baltimore.
From 2007 through June 2009, Nicka, D’Amico, and Peterson used aliases and false identifications, and created and used shell corporations to hold and hide assets, conduct financial transactions, title vehicles, convert assets, and to conceal the source, ownership and control of the proceeds from the marijuana distribution. The defendants structured financial transactions to avoid IRS filing requirements for transactions involving more than $10,000 in cash payments in a single transaction, and further conceal from the government large cash transactions using drug proceeds.
A total of 15 defendants, including D’Amico, Nicka and Peterson, have been convicted in this case. The other 12 defendants have already been sentenced to up to 121 months in prison.
David D’Amico, age 49, of Baltimore, and Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, previously pleaded guilty to their roles in the conspiracy. D’Amico was sentenced to 10 years in prison, and ordered to pay a money judgment of $1 million. Peterson and the government have agreed that if the Court accepts her plea agreement, she will be sentenced to between 84 months and 144 months in prison. Judge Titus has scheduled sentencing for Peterson on September 8, 2016.
United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Leader of Drug Trafficking Ring Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anthony Niles, age 37, of Bowie, Maryland today to 10 years in prison followed by eight years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence 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; Chief J. Thomas Manger of the Montgomery County Police Department; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service, Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief T. N. Treschuk of the Rockville City Police Department; Captain Timothy Lloyd of the Hackensack (New Jersey) Police Department; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, from February to June 8, 2015, Niles supplied co-defendants Vincent Collins, Sierra Lynch, Abdul Sauda and others with large quantities of heroin for re-distribution. Niles used a music studio known as “Crooked House Entertainment,” located at 7922 and 7924 Cryden Way, District Heights, Maryland as a “stash” house to store and distribute drugs.
After monitoring numerous cell phone calls pursuant to a court order in which Niles and his co-defendants discussed drug transactions, on June 8, 2015, law enforcement officers executed a search warrant at Nile’s residence. Before law enforcement entered the residence, Niles attempted to flush several ounces of heroin down the toilet. Officers subsequently recovered approximately 107 grams of heroin from the toilet. Officers also discovered a trail of heroin on the floor leading from Niles’ bedroom to the bathroom. Niles was storing the heroin in a vent beside his bed. Officers also seized approximately $6,156, and items used for the packing and distribution of drugs, such as digital scales and a heavy-duty industrial press.
Niles admitted that during the conspiracy he distributed between 700 and 1,000 grams of heroin.
On May 17, 1999, Niles pled guilty to distributing cocaine in the Circuit Court of Maryland for Prince George’s County, Maryland. He was sentenced to two years imprisonment, with all but six months suspended.
Vincent Collins, age 37, of Oxon Hill, Maryland; Sierra Lynch, age 38, of Beltsville, Maryland; and Abdul Hakim Sauda, age 30, of Laurel, Maryland all pleaded guilty to their participation in the drug conspiracy. Sauda was sentenced on May 2, 2016 to one year and one day in prison. Collins and Lynch await sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, the Montgomery County Police Department, NCIS, Prince George’s County Police Department and the Rockville and Hackensack (New Jersey) Police Departments for their work in the investigation. Mr. Rosenstein commended the Bergen County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance, and thanked Assistant United States Attorneys Daniel C. Gardner and Joseph R. Baldwin, who prosecuted the case.
Leader and Three Co-Conspirators of Methamphetamine Trafficking Ring Operating in Henderson County Area Are Sentenced to PrisonRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced the leader and three co-conspirators to prison terms ranging from 57 months to 70 months for their involvement in a methamphetamine trafficking ring operating in the Henderson county area, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office and Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office.
Judge Cogburn sentenced the defendants as follows:
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Maria Del Ruiz-Zazueta, 45, of Hendersonville to 57 months in prison, followed by three years of supervised release.
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Stephanie Alvarenga, 24, of Hendersonville to 63 months in prison, followed by three years of supervised release.
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Daniel Alfaro, 24, of Laurel Park to 70 months in prison, followed by five years of supervised release.
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Antonio Barbosa, 34, of Hendersonville to 63 months in prison, followed by five years of supervised release.
Judge Cogburn previously sentenced four other conspirators: Nahuan Solano, 27, of Hendersonville, N.C. was sentenced to 63 months in prison followed by five years of supervised release; Eric Lee Garber, 41, of Saluda, N.C. was sentenced to 60 months in prison followed by four years of supervised release; Benjamin Nelson, 31, of Hendersonville, was sentenced to 57 months in prison followed by five years of supervised release; and Allan Collado-Raudez, 23, of Asheville, N.C. was sentenced to 39 months in prison followed by four years of supervised release.
According to filed court documents and today’s sentencing hearing, from about May 2014 to May 2015, the conspirators were involved in a drug trafficking ring, responsible for distributing significant quantities of methamphetamine in Henderson county and surrounding areas. According to court records, Maria Del Ruiz-Zazueta was the leader of the drug ring and was assisted by her daughter, Stephanie Alvarenga, in supplying the methamphetamine to their co-conspirators. Solano and Alfaro were methamphetamine traffickers and acted as runners for Ruiz-Zazueta and Alvarenga. According to court records, the ring’s customers included area methamphetamine traffickers Garber and Nelson. Ruiz-Zazueta and other members of the ring utilized Antonio Barbosa as an alternate source of supply, who was assisted by Collado-Raudez.
Court records show that, on or about May 4, 2015, law enforcement in Oklahoma conducted a traffic stop of the vehicle in which Alvarenga was a passenger. According to court records, Alvarenga and the driver of the vehicle were headed from California to North Carolina. During the traffic stop, law enforcement seized nearly 10 pounds of methamphetamine from a backpack located in the trunk of the car.
The four sentenced today are in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the DEA and the Henderson County Sheriff’s Office. Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s office in Asheville is in charge of the prosecution.
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Kearney Resident and Corporation Sentenced for the Unlawful Hiring of an AlienRead the Press Release
United States Attorney Deborah R. Gilg announced that Paul J. Younes, age 63 of Kearney, Nebraska, and Kearney Hospitality, Inc. d/b/a Fairfield Inn & Suites were sentenced for their convictions concerning the unlawful hiring of an alien. Senior United States District Court Judge Lyle E. Strom sentenced Younes to five years of probation and ordered him to pay a fine of $3,000. Kearney Hospitality, Inc. was sentenced to five years of probation and was ordered to pay a fine of $150,000. Stephanie Hagemeier of Hastings was previously sentenced on April 20, 2016 to one year of probation and was ordered to pay a fine of $500 for her role in the offense.
The investigation revealed that Blanca Gama, a citizen of Mexico who was not lawfully in the United States, was employed as the supervisor of housekeeping at the Holiday Inn Express in Hastings where Hagemeier is employed as the manager. In 2014, Hagemeier learned Gama was under investigation by the Social Security Administration Office of Inspector General. Gama quit her job at the Holiday Inn Express, but later met with Younes who arranged for her to be employed in the housekeeping department at the Fairfield Inn & Suites in Kearney under the name Elizabeth Gomez. At Gama’s request, Younes later authorized Gama’s re-hire at the Holiday Inn Express in Hastings under the name Jacqueline Lopez even though she continued to be referred to as Blanca Gama at that location.
This case was investigated by the Social Security Administration Office of Inspector General, and the Department of Homeland Security Immigration and Customs Enforcement.
Justice Department Permanently Shuts Down International “Psychic” Mail Fraud SchemeRead the Press Release
Fraudsters Allegedly Scammed Victims Out of More Than $180 Million
The U.S. District Court for the Eastern District of New York entered a consent decree on Friday that permanently barred eight individuals and entities from operating an alleged international multi-million dollar mail-fraud scheme in the name of alleged psychics Maria Duval and Patrick Guerin. Pursuant to the consent decree entered, the defendants are barred from using the U.S. mail to distribute any advertisements, solicitations or promotional materials on behalf of any psychics, clairvoyants or astrologers. The consent decree also enjoined the defendants from using the U.S. mail to distribute materials representing that services or items offered for purchase will increase the recipient’s odds of winning a lottery, will bring the recipient good luck or will entitle the recipient to receive an inheritance. The consent decree also authorized the U.S. Postal Inspection Service to return any money or personal checks sent to the defendants and detained by the Postal Inspection Service.
The following eight international defendants agreed to be bound by a permanent injunction in order to resolve the United States’ civil suit against them: Canadian company 9097-9394 Québec Inc. dba Infogest Direct Marketing (Infogest); Infogest employees Mary Thanos, Daniel Sousse and Philip Lett, all of Quebec, Canada; Hong Kong corporation Destiny Research Center Ltd.; Destiny Research Center President Martin Dettling of Zurich, Switzerland; Patrick Guerin of France and Maria Duval of France.
In an amended complaint filed in November 2015, the United States alleges that the defendants operated a mail fraud scheme in which they sent letters purporting to be written by psychics Maria Duval and Patrick Guerin to American consumers through the U.S. mail. The letters claim that the psychics have had a specific, personalized vision or psychic reading revealing that the recipient of the letter has the opportunity to achieve great wealth, including claims of winning millions in the lottery. The solicitations urge victims to purchase various products and services in order to ensure that the foreseen good fortune comes to pass. In reality, the solicitations are identical, mass produced form letters sent to tens of thousands of recipients throughout the United States every month. Many of the customers who receive the solicitations are vulnerable victims, including the desperate, elderly and infirm.
The United States alleges that the fraud scheme victimized more than one million Americans, who sent the defendants payments totaling more than $180 million.
“This widespread scam targeted more than one million Americans, many of whom were elderly or in financial distress,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department is committed to stopping such fraud and pursuing all those responsible for lying to vulnerable consumers for their own financial gain.”
“To line their own pockets, the defendants preyed upon the superstition and desperation of millions of vulnerable Americans,” said U.S. Attorney Robert L. Capers for the Eastern District of New York. “We will use every means at our disposal to protect our citizens from fraudulent schemes like this, that target the lonely, the ill, and the elderly.”
The defendants have all agreed to settle the case and be bound by a permanent injunction. The permanent injunction also bars the defendants from making various claims in advertisements sent through the U.S. mail, including claims that products offered for sale will increase the recipient’s odds of winning the lottery or bring the recipient luck or good fortune. The permanent injunction further bars the defendants from using or selling lists of consumers who have responded to the Duval and Guerin solicitations.
The United States’ case is being handled by Trial Attorney Ann F. Entwistle of the Civil Division’s Consumer Protection Branch, and Chief of Affirmative Civil Enforcement John Vagelatos for the U.S. Attorney’s Office of the Eastern District of New York, in coordination with the U.S. Postal Inspection Service.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Justice Department Permanently Shuts Down International “Psychic” Mail Fraud SchemeRead the Press Release
The U.S. District Court for the Eastern District of New York entered a consent decree today that permanently barred eight individuals and entities from operating an alleged international multi-million dollar mail-fraud scheme in the name of alleged psychics Maria Duval and Patrick Guerin. Pursuant to the consent decree, the defendants were barred from using the U.S. mail to distribute any advertisements, solicitations, or promotional materials on behalf of any psychics, clairvoyants, or astrologers. The consent decree also enjoined the defendants from using the U.S. mail to distribute materials representing that services or items offered for purchase will increase the recipient’s odds of winning a lottery, will bring the recipient good luck, or will entitle the recipient to receive an inheritance. The consent decree also authorized the United State Postal Inspection Service to return any money or personal checks sent to the defendants and detained by the Postal Inspection Service.
The following eight international defendants agreed to be bound by a permanent injunction in order to resolve the United States’ civil suit against them: Canadian company 9097-9394 Québec Inc. dba Infogest Direct Marketing (Infogest); Infogest employees Mary Thanos, Daniel Sousse and Philip Lett, all of Quebec, Canada; Hong Kong corporation Destiny Research Center Ltd.; Destiny Research Center President Martin Dettling of Zurich, Switzerland; Patrick Guerin of France; and Maria Duval of France.
In an amended complaint filed in November 2015, the United States alleges that the defendants operated a mail fraud scheme in which they sent letters purporting to be written by psychics Maria Duval and Patrick Guerin to American consumers through the U.S. mail. The letters claim that the psychics have had a specific, personalized vision or psychic reading revealing that the recipient of the letter has the opportunity to achieve great wealth, including claims of winning millions in the lottery. The solicitations urge victims to purchase various products and services in order to ensure that the foreseen good fortune comes to pass. In reality, the solicitations are identical, mass produced form letters sent to tens of thousands of recipients throughout the United States every month. Many of the customers who receive the solicitations are vulnerable victims, including the desperate, elderly, and infirm.
The United States alleges that the fraud scheme victimized more than one million Americans, who sent the defendants payments totaling more than $180 million.
“To line their own pockets, the defendants preyed upon the superstition and desperation of millions of vulnerable Americans,” said United States Attorney Robert L. Capers. “We will use every means at our disposal to protect our citizens from fraudulent schemes like this that target the lonely, the ill, and the elderly.”
“This widespread scam targeted more than one million Americans, many of whom were elderly or in financial distress,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department is committed to stopping such fraud and pursuing all those responsible for lying to vulnerable consumers for their own financial gain.”
The defendants have all agreed to settle the case and be bound by a permanent injunction. The permanent injunction also bars the defendants from making various claims in advertisements sent through the U.S. mail, including claims that products offered for sale will increase the recipient’s odds of winning the lottery or bring the recipient luck or good fortune. The permanent injunction further bars the defendants from using or selling lists of consumers who have responded to the Duval and Guerin solicitations.
The United States’ case is being handled by John Vagelatos, Chief of Affirmative Civil Enforcement for the U.S. Attorney’s Office of the Eastern District of New York, and Ann F. Entwistle, Trial Attorney for the Civil Division’s Consumer Protection Branch, in coordination with the U.S. Postal Inspection Service.
For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
E.D.N.Y. Docket No. 14-CV-6791
Justice Department Files Complaint Against the State of North Carolina to Stop Discrimination Against Transgender IndividualsRead the Press Release
Attorney General Loretta E. Lynch announced today that the Justice Department has filed a complaint against the state of North Carolina, the University of North Carolina (UNC) and the North Carolina Department of Public Safety (DPS) alleging that they are discriminating against transgender individuals in violation of federal law as a result of the state’s compliance with and implementation of House Bill 2 (H.B. 2). H.B. 2 requires public agencies to treat transgender individuals, whose gender identity does not match the sex they were assigned at birth, differently from similarly situated non-transgender individuals.
The complaint, filed in the Middle District of North Carolina, follows the department’s notice to the defendants on May 4, 2016, that they are in violation of Title VII of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972 and the Violence Against Women Reauthorization Act of 2013 (VAWA).
“This action is about a great deal more than just bathrooms,” said Attorney General Lynch. “This is about the dignity and respect we accord our fellow citizens, and the laws that we, as a people and as a country, have enacted to protect them – indeed, to protect all of us. It’s about the founding ideals that have led this country – haltingly but inexorably – in the direction of fairness, inclusion, and equality for all Americans. This is not a time to act out of fear. This is a time to summon our national virtues of inclusivity, diversity, compassion, and open-mindedness. What we must not do – what we must never do – is turn on our neighbors, our family members, our fellow Americans, for something they cannot control, and deny what makes them human.”
The complaint alleges that the defendants, as a result of compliance with and implementation of the bathroom and changing facility provisions of H.B. 2, are engaging in a pattern or practice of discrimination against transgender public employees and applicants in violation of Title VII, which prohibits discrimination in employment on the basis of sex. Access to restrooms is an important, basic condition of employment and denying transgender individuals access to restrooms and changing facilities consistent with their gender identity constitutes unlawful sex discrimination.
The complaint also alleges that, as a result of these same provisions in H.B. 2, UNC and DPS are violating the non-discrimination provision of VAWA, which prohibits discrimination on the basis of sex and gender identity. Additionally, the complaint alleges that UNC is violating Title IX, which prohibits discrimination on the basis of sex. These laws apply to recipients of federal funding.
“H.B. 2 violates the laws that govern our nation and the values that define us as a people,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Transgender men are men – they live, work and study as men. Transgender women are women – they live, work and study as women. America protects the rights of all people to be who they are, to express their true selves and to live with dignity.”
The complaint is being handled by the Civil Rights Division which enforces the non-discrimination provisions of Title VII, Title IX and VAWA.
North Carolina Complaint
Jury Convicts North Suburban Lawyer of Immigration Fraud for Falsifying Clients’ Applications for U.S. AsylumRead the Press Release
CHICAGO — A federal jury today convicted a north suburban attorney of submitting false information to immigration authorities to help his clients seek asylum in the United States.
ROBERT DEKELAITA accepted fees from foreign nationals in exchange for submitting the false documents to the U.S. Department of Homeland Security’s Citizenship and Immigration Services. DeKelaita’s fraudulent statements often falsely portrayed his clients as victims of persecution by religious extremists in the Middle East.
DeKelaita, 53, of Glenview, was convicted on one count of conspiracy to commit asylum fraud, two counts of knowingly offering false statements in an asylum application, and one count of procuring perjury during asylum interviews. The conviction is punishable by a maximum sentence of 35 years in prison.
U.S. District Judge Matthew F. Kennelly scheduled a sentencing hearing for Aug. 3, 2016, at 1:30 p.m.
Asylum is a benefit the U.S. government extends to immigrants who have suffered persecution in their native country or who fear future persecution on account of race, religion, nationality, membership in a particular social group, or political opinion. To apply for asylum, the immigrant must submit an application detailing his or her personal history and provide a specific account of the alleged persecution. The application is signed by the immigrant, the immigrant’s attorney, and, if translation services were provided, the interpreter. An interview is then held before immigration authorities, with all of the signors present. A grant of asylum confers numerous benefits upon the immigrant, including eligibility to apply for permanent residency status.
DeKelaita is a licensed attorney whose Morton Grove firm, R.W. DeKelaita & Associates LLC, specializes in immigration law. Evidence at trial revealed that from approximately 2000 to 2011, DeKelaita prepared and submitted asylum applications that contained material lies, including tales of rape, murder, torture, kidnappings, bombings and other forms of religious oppression in the Middle East. As a result, several of DeKelaita’s clients were granted asylum and eventually permanent residency and citizenship status.
Two interpreters who provided Arabic and Assyrian translations for DeKelaita’s clients were also charged in the scheme. ADAM BENJAMIN, of Skokie, pleaded guilty last year to one count of conspiracy to commit asylum fraud. Benjamin admitted in a plea agreement that he instructed DeKelaita’s clients to present false stories of persecution in order to secure asylum. Benjamin was sentenced in July 2015 to six months in prison. YOUSIF YOUSIF, of Skokie, has pleaded not guilty to immigration fraud charges and is scheduled for trial on Aug. 29, 2016, before Judge Kennelly.
DeKelaita’s conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Armando Lopez, Special Agent-in-Charge of the Homeland Security Office of Inspector General in Chicago; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. Assisting in the investigation were Homeland Security’s U.S. Citizenship and Immigration Services; Homeland Security’s U.S. Customs and Border Protection; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Farmington Hills, Mich., Police Department.
The government is represented by Assistant U.S. Attorneys Lindsay Jenkins and Andrianna Kastanek.
Jefferson County Individuals Arrested on Federal Drug Trafficking ChargesRead the Press Release
BEAUMONT, Texas - U.S. Attorney John M. Bales announced today that 11 Jefferson County men are in custody following a lengthy investigation into drug trafficking in the Eastern District of Texas.
On May 6, 2016, a combined task force of federal, state and local law enforcement agencies began executing federal arrest warrants for defendants indicted following a ten month investigation into the distribution of crack cocaine in Beaumont, Texas.
A federal grand jury returned a four-count indictment on May 4, 2016 charging 13 individuals with federal drug and firearms violations. Of those, five defendants were arrested on May 6th and will be making initial appearances in court this week. Those arrested are:
Ashton Devon Randolph, 20; Christopher Dewayne Ooten, 38; Clifton Ray Freeman, 26; George Lewis, 58; and
Kody Dwayne Ardoin, 21, all of Beaumont, Texas.Of the 13 individuals indicted on May 4th, six were already in custody and are as follows:
Kerry Arsenio Ardoin, 25; Kristopher George Ardoin, 29; Michael Eugene Ardoin, 29; Patrick Alan Jackson, 27; Seth Deandre Turner, 27; and
Terrance Ardoin, 31, all of Beaumont, Texas.The remaining two defendants are being sought by law enforcement at this time.
According to the indictment, for over a decade the Ardoin family and others are alleged to have openly distributed crack cocaine from their home at 1107 Avenue A in Beaumont.
“The ‘crack house’ operated by and for these defendants is just what you might expect – a vortex of misery and lost dreams,” said U.S. Attorney Bales. “The investigators working on this case have done an excellent job in building the necessary proof to hold the named defendants accountable for the damage that they have done to the community and to the sad and desperate customers who purchased the crack. We look forward to presenting the evidence in a court of law.”
If convicted of the drug conspiracy charges, the defendants face a minimum of 10 years and up to life in federal prison. If convicted of the firearms charges, the defendants face up to 20 years in federal prison. If convicted of the drug house charge, those defendants face up to 20 years in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Beaumont Police Department. The U.S. Marshals Service also assisted in today’s law enforcement activities. This case is being prosecuted by Assistant U.S. Attorney Lesley A. Woods.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Huber Heights Man Pleads Guilty to Possessing Child PornographyRead the Press Release
DAYTON – Richard C. Webber, 54, of Huber Heights, Ohio, pleaded guilty in U.S. District Court to one count of possession of child pornography.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Montgomery County Sheriff Phil Plummer announced the plea entered into today before Chief U.S. Magistrate Judge Sharon L. Ovington.
According to court documents, Webber used “Peer-to-Peer” software and file-sharing programs and applications – including ARES, LimeWire and NewsBin, as well as Windows – to obtain, download, view, possess with intent to distribute, share and transfer child pornography. Webber possessed videos depicting child pornography on a shared file folder on his home desktop computer and various storage devices in his home in Huber Heights. Upon executing a search warrant, investigators discovered more than 1,200 pictures and 170 video files of child pornography, including ones involving prepubescent minors.
Webber was charged on March 25, 2016 by a Bill of Information. Sentencing is set for 2pm on August 9 before U.S. District Court Judge Walter H. Rice.
Possession of child pornography involving prepubescent minors carries a potential maximum custodial sentence of 20 years in prison and at least five years up to a lifetime of supervised release. Webber will also be required to register as a sex offender.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, 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/.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Andrew J. Hunt and First Assistant United States Attorney Vipal Patel, who are representing the United States in this case.
Fresno Man Pleads Guilty to Conspiring to Distribute HeroinRead the Press Release
FRESNO, Calif. — Rafael Guzman, 42, of Fresno, pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin, Acting United States Attorney Phillip A. Talbert announced.
Guzman was indicted on April 9, 2015, with six other defendants including Keith Foster, a former deputy chief of the Fresno Police Department. According to Guzman’s plea agreement, between December 23, 2014, and February 2, 2015, he conspired with Foster to acquire and distribute heroin.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Melanie L. Alsworth and Duce W. Rice are prosecuting the case.
Guzman is scheduled to be sentenced by United States District Judge Anthony W. Ishii on August 15, 2016. Guzman faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Sarah Ybarra previously pleaded guilty to conspiring to distribute marijuana and was sentenced to a one year in prison. The charges against all of the remaining defendants, including Foster, are allegations only; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno County Man Sentenced to over 12 Years in Prison for Enticement of a MinorRead the Press Release
FRESNO, Calif. — Juan Martin Torres, 28, of Firebaugh, was sentenced today by United States District Judge Anthony W. Ishii to 12 years and seven months in prison for enticing a minor to engage in unlawful sexual activity, Acting United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial in February 2016, Torres was the director of the Firebaugh Boys and Girls Club. Torres was supervising a 14-year-old boy who often came to that Boys and Girls Club after school to complete 120 hours of community service. Torres sent the boy messages over Facebook that offered to shortcut his community‑service-hours requirement if the boy would agree to sexual acts with Torres. The boy reported the messages to law enforcement.
This case was the product of an investigation by the Firebaugh Police Department, the Fresno County Sheriff’s Office, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Michael Tierney and Vincenza Rabenn prosecuted the case.
“We trust those in positions like the one held by the defendant to protect our children,” said Acting U.S. Attorney Talbert. “In committing this crime, the defendant committed an incredible breach of trust with the community, and we are grateful for the hard work by our partners in federal and local law enforcement to bring him to justice.”
“Torres’ heinous violation of the trust afforded to him as a mentor and protector remains appalling,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “The sentence is befitting of his disturbing crime and should be seen as a clear message that HSI and our law enforcement partners will make certain that anyone who chooses to exploit innocent children will be held accountable for their actions.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Four Ohio men convicted of defrauding 500 investors out of $10 millionRead the Press Release
Four Ohio men were convicted for conspiring to defraud investors out of more than $10 million by selling unregistered securities and making several misrepresentations to investors about the product they purported to develop, law enforcement officials said.
Kenneth Jackson, 59, of Glenmont; William Schureck, 81, of Lexington; Dennis Deciancio, 73, of Macedonia, and Daryl Dane Donohue, 67, of Mansfield, were convicted by a jury following a four-week trial. They are scheduled to be sentenced on Sept. 1.
The men were convicted on counts including conspiracy to commit mail and wire fraud, conspiracy to launder money, mail fraud, wire fraud, money laundering, making false statements and other charges.
“More than 500 people were scammed out of money by this group,” said Acting U.S. Attorney Carole S. Rendon. “Retirements were stolen and dreams were destroyed by their fraudulent conduct.”
“These four individuals conspired to misrepresent a product to their investors in order to make a profit,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue efforts to bring to justice those that have duped investors out of their hard-earned money.”
"These defendants built a house of cards laced with a web of financial lies. Well, the underlying structure fell apart and exposed these individuals for who they really are, thieves," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Combining the financial investigative expertise of the IRS with the skills and resources of the FBI, the Food and Drug Administration and the U.S. Attorney's Office makes a formidable team for combating major, greed-driven crimes."
All four men were affiliated with Medical Safety Solutions, or MSS, a company Jackson founded in 2007 which operated out of Mansfield and had a purported “research and development center” at Jackson’s home in Glenmont. Jackson held the title of Director of Research and Development at MSS. Schureck co-founded the company held the title of Chief Executive Officer at MSS. Deciancio co-founded the company and attended trade shows on the company’s behalf. Donohue was a longtime associate of Jackson who communicated with shareholders of MSS and held himself out as an “FDA consultant” hired by the company for the sole purpose of obtaining Food and Drug Administration approval for the Sharps Terminator, according to trial testimony.
The founders of MSS held the company out as an entity created to develop, market and sell a hypodermic needle destruction device they called the Sharps Terminator. The Sharps Terminator required premarket approval from the FDA before it could be sold in the United States. Jackson and Schureck filed a provisional application for a patent on the Sharps Terminator around April 2007 but did not file an actual patent application until September 2011. MSS filed a premarket approval application for the Sharps Terminator in October 2012. Between 2007 and May 2013, the defendants were engaged in the unregistered sale of securities. They did this by seeking out individuals to buy private shares of stock in MSS, but those shares were not registered with the Securities and Exchange Commission, according to trial testimony.
They defrauded investors by inducing them to buy stock and making false and fraudulent misrepresentations about MSS and the Sharps Terminator, including: that MSS had submitted a premarket approval application when it had not; that FDA approval of the Sharps Terminator was forthcoming or imminent when MSS had not even initiated the approval process; that the FDA had approved the Sharps Terminator when it had not; that the product was “market ready” that was ready for mass production when it was not, and other misrepresentations, according to trial testimony.
To make MSS appear functional and the Sharps Terminator market ready, the defendants took current and prospective investors to MSS’s “R&D facility” and showed them parts, a small number of assembled Sharps Terminator units, and large numbers of Sharps Terminator boxes, many of which were really empty, according to the indictment.
More than 500 investors were defrauded as part of the scheme. They lost more than $10 million between 2007 and 2013, according to trial testimony and court documents.
Jackson and Schureck transferred the money to cover other expenses, and Jackson gambled more than $3.3 million at Mountaineer Casino between 2009 and 2013, according to the court documents.
This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service—Criminal Investigations and the Food and Drug Administration.
Former Watch Manufacturer Employee Admits Using False Invoicing Scheme to Steal Company MerchandiseRead the Press Release
TRENTON, N.J. – A former employee of a Bergen County, New Jersey, watch manufacturer today admitted using phony documents and corporate records to defraud her employer out of hundreds of thousands of dollars of watches and watch parts, U.S. Attorney Paul J. Fishman announced.
Lissette Delarosa, 37, of Woodland Park, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging her with one count of mail fraud conspiracy.
According to documents filed in this case and statements made in court:
Delarosa admitted that from May 2003 through July 2010, she and Cynthia Alvarez, a/k/a “Cynthia Espejo,” 50, of Kissimmee, Florida, abused their positions in the watch manufacturer’s Bergen County customer service department to fraudulently obtain merchandise. Alvarez and Delarosa created hundreds of fictitious invoices, records, and customer complaints for watches and watch parts in their employer’s invoicing system and directed the merchandise to be sent to addresses they controlled. The watch manufacturer received no payment related to these invoices and no legitimate basis existed for providing the parts free of charge.
The mail fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount of loss caused by the offense. Delarosa’s sentencing is scheduled for Aug. 16, 2016.
Alvarez pleaded guilty to the same offense on Sept. 8, 2015 and awaits sentencing.
U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner, with the investigation.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Alan D. Bowman, Esq., Newark, New Jersey
Former Philadelphia 311 Employee Pleads Guilty to Counterfeiting SEPTA TransPassesRead the Press Release
PHILADELPHIA – Mark Cooper, 35, of Philadelphia, PA, entered a guilty plea today to a conspiracy involving more than 2,000 counterfeit monthly passes for Southeastern Pennsylvania Transportation Authority (SEPTA), and possession of access device making equipment announced United States Attorney Zane David Memeger. U.S. District Court Judge Berle M. Schiller scheduled sentencing for August 4, 2016.
Between August 2013 and June 2015, Cooper conspired with Kimberly Adams to produce and sell counterfeit SEPTA monthly TransPasses, which allow passengers to board SEPTA buses, trolleys and subway trains. Once Cooper created the counterfeit passes, he gave them to Adams. Adams met customers, predominately City of Philadelphia employees inside and outside of City Hall, and sold the counterfeit passes for approximately $50. A genuine monthly TransPass normally sells for $91. The defendants counterfeited and sold in excess of 2,000 monthly passes and split the proceeds.
Cooper faces a statutory maximum possible sentence of 20 years in prison, a fine of up to $500,000, four years of supervised release, and a $200 special assessment. Adams pleaded guilty on August 11, 2015 and is scheduled to be sentenced May 18, 2016.
The case was initiated by the City of Philadelphia Office of the Inspector General, jointly investigated with the FBI and the SEPTA Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Karen Marston.
Former North Texas Pharmacist Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
SHERMAN, Texas – A 29-year-old Granbury, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Christopher Esparza pleaded guilty on Jan. 5, 2016, to conspiracy to distribute and possession with intent to distribute oxycodone and was sentenced to 72 months in federal prison on May 6, 2016 by U.S. District Judge Marcia Crone.
According to information presented in court, from November 2012 to September 2015, Esparza was the pharmacist in charge of Trinity Pharmacy on Rosemeade Parkway in Carrollton, Texas. During this time, he illegally sold large quantities of oxycodone to another individual. It was also revealed during the investigation that a review of the pharmacy’s inventory records suggested a large amount of oxycodone with a street value of approximately $2.9 million was unaccounted for. Esparza was indicted by a federal grand jury on Sep. 10, 2015
This case was investigated by the Drug Enforcement Administration – Dallas Field Division Tactical Diversion Squad, the Texas Department of Public Safety, the Texas Board of Pharmacy, and the McKinney Police Department. This case was prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
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Former FBI Assistant Special Agent in Charge Pleads Guilty to Perjury and Obstruction of JusticeRead the Press Release
BOSTON – Robert Fitzpatrick, former Assistant Special Agent in Charge (“ASAC”) of the FBI’s Boston Office, has pleaded guilty to 12 counts of an indictment charging him with perjury and obstruction of justice in connection with his testimony at the 2013 trial of James “Whitey” Bulger.
Fitzpatrick, in his capacity as ASAC of the Boston Division, had overall supervisory responsibility of the organized crime program in Boston between 1981 and 1986—a time period in which Bulger, while an active FBI informant, was involved in eight murders.
Fitzpatrick, 76, of Charlestown, R.I., who is the author of Betrayal, Whitey Bulger and the FBI Agent Who Fought To Bring Him Down, was called to testify at the Bulger trial on July 29 and July 30, 2013. In pleading guilty, Fitzpatrick admitted that he lied when he testified at Bulger’s trial that he tried to end Bulger’s relationship with the FBI and target Bulger for prosecution but was overruled by higher authorities in the FBI.
Specifically, Fitzpatrick admitted that contrary to his sworn testimony at the Bulger trial:
- his assignment to Boston in 1980 as ASAC was not a special mission ordered by the Assistant Director of the FBI because there were problems in the office, but rather a routine reassignment;
- Bulger never said, “I’m not an informant” or otherwise denied being an informant when he met with Fitzpatrick;
- Fitzpatrick never tried to close Bulger as an FBI informant;
- Fitzpatrick was demoted from ASAC because he falsified official FBI reports in connection with a shooting incident, not because he reported corruption;
- Fitzpatrick did not arrest mob boss Gennaro Angiulo; and
- Fitzpatrick did not find or recover the rifle James Earl Ray used to assassinate Dr. Martin Luther King, Jr. at the Lorraine Motel in Memphis, TN in 1968.
“Mr. Fitzpatrick’s plea of guilty on all counts makes clear that there are consequences to lying in federal court. In this case, the fact that the defendant was a high-ranking former law enforcement official, who falsely held himself out as a whistleblower who tried to end the FBI’s corrupt relationship with Bulger, made his conduct even more egregious,” U.S. Attorney Carmen M. Ortiz said.
“For a former senior FBI official to lie under oath while testifying in a prosecution related to the FBI’s corrupt relationship with a violent criminal is egregious and can erode the public’s trust in the judicial system,” said Ronald G. Gardella, Special Agent in Charge of the Department of Justice Office of Inspector General’s New York Field Office. “When allegations of this kind arise, it is critical that they be fully investigated so the public and juries can have confidence that when witnesses take the stand, they are fully aware of the stakes for not telling the truth.”
U.S. District Judge F. Dennis Saylor IV took the plea agreement under advisement and set sentencing for August 5th. If Judge Saylor accepts the plea agreement, he must sentence Fitzpatrick to 24 months’ probation, a fine of $12,500 and a special assessment of $1,200.
U.S. Attorney Ortiz and Special Agent in Charge Gardella made the announcement today. This case was investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Assistant U.S. Attorneys Zachary R. Hafer and Fred M. Wyshak of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Clerk Pleads Guilty to Leaking Information About Drug-trafficking InvestigationRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former employee of the Boone County Clerk’s Office has pleaded guilty in federal court to leaking information about a drug-trafficking investigation. She is among six more defendants who recently pleaded guilty to their roles in a large-scale conspiracy to distribute cocaine in Boone County, Mo.
Christin Sledd, 25, of Columbia, Mo., pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on April 29, 2016, to using a telephone to facilitate a drug-trafficking conspiracy. The father of her child, Ryan Montez Kee, 29, of Columbia, pleaded guilty today to the same charge.
Four additional defendants recently pleaded guilty. Michael Earl Hunt, also known as “Mike Deuce,” 35, of Columbia, pleaded guilty on April 28, 2016 to his role in the drug-trafficking conspiracy. Courtney Lashea Thornton, 35, of Columbia, and Ronald Elwood Brown, 40, of Sturgeon, Mo., each pleaded guilty on April 26, 2016, to their roles in the drug-trafficking conspiracy. Kenneth Scott, Jr., 26, of Columbia, pleaded guilty on April 26, 2016, to using a telephone to facilitate the drug-trafficking conspiracy.
All but one of the 27 defendants charged in this case now have pleaded guilty. The only remaining defendant, Marlon Laron Smith, 35, of Murphysboro, Ill., is a fugitive.
Sledd worked at the Boone County Clerk’s Office in July and August 2014. As a clerk in the Criminal Division, she had access to confidential information, including the fact that search warrants were applied for and signed by judges.
Sledd learned at approximately 2:45 p.m. on Aug. 1, 2014, that a judge had signed a search warrant for a residence on Coats Street. She called Kee, who then passed along the information. Co-conspirators believed the search warrant was for the residence used by co-defendant Rodney Wayne Arnold, also known as “Rodney O.,” 32, of Columbia to store cocaine.
Law enforcement investigators recorded a phone call at 2:58 p.m. the same day in which co-defendant Malcolm Desean Redmon, also known as “Harp,” 32, of Columbia, was warned in advance about the search warrant. The caller urged Redmon to warn Arnold that the police were preparing to “kick his house in.” Redmon said that he would warn Arnold. Both Redmon and Arnold have pleaded guilty to their roles in the drug-trafficking conspiracy.
The caller indicated that Kee was his source for the information, and said that his source got the information from an employee at the clerk’s office.
For law enforcement officers’ safety, execution of the search warrant was called off once the person monitoring the interceptions heard the conversations and notified the task force that the search warrant had been compromised.
Scott admitted that he knew his father and co-conspirator, Kenneth Scott, Sr., 47, of Columbia, was in the business of distributing cocaine and that he conspired with many individuals to distribute cocaine. One of the ways which Scott, Sr. would get cocaine to his customers was to arrange to have a key left in a car or truck, and once the customer had ordered and paid for the cocaine, the customer was told where the key was located. The customer could then use the key on the car or truck they were directed to, and pick up the cocaine.
By pleading guilty, Scott, Jr. admitted that he received a phone call from his father, who instructed him to get a key and hide it in the back of a truck so that a person could pick it up and use it. Scott, Jr. also admitted that, after he complied with his father’s request to hide the key, he called him on the phone to confirm that he had hidden the key in the truck in a gum box.
Hunt, Thornton and Brown admitted that they participated in a conspiracy to distribute cocaine in Boone County from November 2011 to August 2014.
Under federal statutes, Sledd, Kee and Scott are each subject to a sentence of up to four years in federal prison without parole. Brown is subject to a sentence of up to 40 years in federal prison without parole. Hunt and Thornton are each subject to a sentence of up to 20 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. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Drug Enforcement Administration and the Boone County, Mo., Prosecuting Attorney’s Office.
Florida Resident Pleads Guilty to Fraudulent Shipments of Synthetic Drugs from Lab in StocktonRead the Press Release
FRESNO, Calif. — Timothy New, 33, of Pensacola, Florida, pleaded guilty today to shipping in interstate commerce, with intent to defraud, misbranded synthetic drugs, commonly known as “spice,” Acting United States Attorney Philip A. Talbert announced.
According to court documents, between September 2012 and May 2103, New and his co‑defendants utilized a manufacturing and distribution operation at a processing lab in Stockton to ship at least 24 tons of misbranded smokeable synthetic cannabinoids that contained the synthetic drugs AM-2201 and XLR11 to smoke shops and retail outlets throughout the United States. They generated in excess of $33 million as a result of the fraudulent sales.
Operating under the guise of legitimacy by companies called Zencense Incense Works LLC, ZenBio LLC, and Biozen LLC, New and his co-defendants received falsely invoiced raw synthetic cannabinoids from China that they used to manufacture and distribute as smokeable synthetic cannabinoids. The drugs were sold under the brand names Bizarro, Orgazmo, Headhunter, Defcon, Neutronium, Sonic Zero, Sonic Boom, Sonic Blast, Shockwave, Hampster, and Posh. To evade detection by federal law enforcement authorities, New and his co-defendants deliberately misbranded and marketed their product as “potpourri” or “herbal incense” that they claimed was “not for human consumption,” but fully intended to be used as a narcotic. New and his co-defendants distributed the drugs to the Stuffed Pipe smoke shops located throughout the Central Valley of California, as well as to numerous other retail establishments throughout the United States.
At the time of the illicit enterprise, AM-2201 was a Schedule I controlled substance and XLR11 was a controlled substance analogue that was publically noticed for scheduling in April, 2013, and was placed under Schedule I as a controlled substance in May, 2013.
Public health and law enforcement agencies have seen the emergence of synthetic drug use. State and local public health departments note that synthetic cannabinoids cause serious adverse health effects, including agitation, anxiety, nausea, vomiting, tachycardia, elevated blood pressure, tremor, seizures, hallucinations, and paranoid behavior. DEA scheduled XLR11 based, in part, on findings of the Center for Disease Control and Prevention that the drug causes kidney damage.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. This OCDETF investigation was also part of a nationwide law enforcement effort coordinated by the DEA’s Special Operations Division.
New is scheduled for sentencing on August 1, 2016, by United States District Judge Dale A. Drozd. He faces a maximum statutory penalty of three years in prison and a $250,000 fine, or twice the gross gain from the crime. 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.
Co-defendants Douglas Jason Way, 41, of Evanston, Illinois, Timothy Ortiz, 45, of Waukegan, Illinois, and Natalie Middleton, 28, of Clovis, California, have entered not guilty pleas and are next scheduled to appear in federal court in September. They are charged with drug and money laundering offenses, in addition to the misbranding charge, and face a maximum penalty of 20 years in prison and a $10 million fine. The charges against them are only allegations; Way, Ortiz, and Middleton are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Florida Man Sentenced for Threatening to Firebomb Two Mosques and Shoot CongregantsRead the Press Release
The Justice Department announced today that Martin Alan Schnitzler, 43, was sentenced to one year and a day in prison for calling two mosques in Pinellas County, Florida, and threatening to firebomb them and shoot their worshippers.
Schnitzler pleaded guilty on Feb. 12, 2016, to obstructing persons in the free exercise of religious beliefs for issuing the threats. He was sentenced by U.S. District Court Judge James D. Whittemore of the Middle District of Florida.
As part of his plea, Schnitzler admitted that on Nov. 13, 2015, he intentionally obstructed members of the Islamic Society of St. Petersburg, Florida, and the Islamic Society of Pinellas County from practicing their religion when he left voicemail messages threatening the safety of the mosques’ congregants. Schnitzler claimed that his threats were prompted by the terrorist attacks in Paris. Among other things, Schnitzler also admitted that in one of the voicemails he threatened to “personally have a militia” report to one of the mosques and “firebomb you, shoot whoever is there on sight in the head. I don’t care if they’re [expletive] two years old or a hundred.”
In response to the threats, both mosques requested increased law-enforcement presence at their locations and took extra safety precautions for congregants.
“Criminal threats of violence that target people and communities because of their religious beliefs threaten the core values that define a fair and just society – equal protection and mutual respect for all,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When individuals commit religion-based hate crimes, we will hold them accountable for their actions and ensure they face justice.”
“This prosecution sends a clear message to anyone who contemplates the use of threats or intimidation to interfere with the right of individuals to worship as they choose, without fear,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “The U.S. Attorney’s Office is committed to taking whatever action is necessary to protect this important First Amendment right.”
The FBI investigated the case with the assistance of the St. Petersburg Police Department. The case was prosecuted by Assistant U.S. Attorneys Daniel George and Daniel Irick of the Middle District of Florida and Trial Attorney Gabriel Davis of the Civil Rights Division’s Criminal Section.
Florida Man Sentenced for Threatening to Firebomb Two Mosques and Shoot CongregantsRead the Press Release
Tampa, FL – The Justice Department announced today that Martin Alan Schnitzler, 43, was sentenced to a year and a day in prison for calling two mosques in Pinellas County, Florida, and threatening to firebomb them and shoot their worshippers.
Schnitzler pleaded guilty on Feb. 12, 2016, to obstructing persons in the free exercise of religious beliefs for issuing the threats. He was sentenced by U.S. District Court Judge James D. Whittemore of the Middle District of Florida.
As part of his plea, Schnitzler admitted that on Nov. 13, 2015, he intentionally obstructed members of the Islamic Society of St. Petersburg, Florida, and the Islamic Society of Pinellas County from practicing their religion when he left voicemail messages threatening the safety of the mosques’ congregants. Schnitzler claimed that his threats were prompted by the terrorist attacks in Paris. Among other things, Schnitzler also admitted that in one of the voicemails he threatened to “personally have a militia” report to one of the mosques and “firebomb you, shoot whoever is there on sight in the head. I don’t care if they’re [expletive] two years old or a hundred.”
In response to the threats, both mosques requested increased law-enforcement presence at their locations and took extra safety precautions for congregants.
“This prosecution sends a clear message to anyone who contemplates the use of threats or intimidation to interfere with the right of individuals to worship as they choose, without fear,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “The U.S. Attorney’s Office is committed to taking whatever action is necessary to protect this important First Amendment right.”
“Criminal threats of violence that target people and communities because of their religious beliefs threaten the core values that define a fair and just society – equal protection and mutual respect for all,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When individuals commit religion-based hate crimes, we will hold them accountable for their actions and ensure they face justice.”
The FBI investigated the case with the assistance of the St. Petersburg Police Department. The case was prosecuted by Assistant U.S. Attorneys Daniel George and Daniel Irick of the Middle District of Florida and Trial Attorney Gabriel Davis of the Civil Rights Division’s Criminal Section.
Endicott Man Indicted for Receiving and Possessing Child PornographyRead the Press Release
BINGHAMTON, NEW YORK – On May 4, 2016, a federal grand jury issued an indictment charging Brandon Kie, 30, of Endicott, New York, of receiving and possessing child pornography on a computer, announced by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Kie made his initial appearance in federal court on Friday, May 6, 2016, in Binghamton, New York, before United States Magistrate Judge Thérèse Wiley Dancks. He was ordered held in custody pending a detention hearing scheduled for May 11, 2016.
Kie faces a minimum sentence of 5 years and up to 20 years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Downey Man Sentenced for Falsely Certifying Beef as Free of E.coliRead the Press Release
LOS ANGELES – A Downey man who falsely certified that contaminated beef was free of E. coli O157:H7 bacterium has been sentenced to a year of home detention and required to pay $307,695.90 in restitution.
Jim Johnson, 67, had pleaded guilty to falsifying a Certificate of Analysis in United States District Court last November.
Johnson worked as a consultant for Huntington Meat Packing Company, a former meat processing and distribution company located in Montebello, California. The company had a plan that addressed, among other things, how the company would test its beef for E. coli. Among Huntington’s customers were El Primo Foods and Foster Farms.
Several years ago, Johnson knowingly and willfully provided the U.S. Department of Agriculture Food Safety Inspection Service (“USDA-FSIS”) with a fake Certificate of Analysis which falsely stated that a beef sample from the company had tested negative for E. coli. In fact, when Johnson made the false document, he knew that preliminary laboratory results indicated that the beef tested positive for E. coli. Further laboratory testing confirmed that the beef was, indeed, contaminated with the pathogen.
“The defendant’s crime endangered consumers throughout the country,” said United States Attorney Eileen M. Decker. “The public is dependent upon inspections and testing for food safety, and this case illustrates the immense ramifications that one failure can have on consumers.”
In its sentencing papers, the government stated that the USDA identified a total of approximately 111 Certificates of Analysis falsified by Johnson between March 30, 2009, and January 12, 2010. Other than the meat that tested positive for E. coli, none of the other meat related to those Certificates of Analysis was ever sent to the laboratory for testing.
Upon learning of the false Certificate of Analysis, USDA-FSIS initially recalled approximately 864,000 pounds of beef products. The recall was expanded less than a month later to include approximately 4.9 million pounds of additional beef and veal products from Huntington due to the falsified Certificates of Analysis and other violations.
The case against Johnson is the product of an investigation by the U.S. Department of Agriculture, Office of Inspector General, with assistance by the U.S. Department of Agriculture Food Safety and Inspection Service.
Dona Ana County Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Steven Roman, 28, of Mesilla Park, N.M., was sentenced today in federal court in Las Cruces, N.M., to 77 months in federal prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Roman and co-defendants Guillermo Ortega, 43, and Salvador Ortega, 35, both of Las Cruces, were charged with methamphetamine trafficking offenses in a four-count indictment filed on June 18, 2014. The indictment charged Salvador Ortega and Guillermo Ortega with distributing methamphetamine on April 2, 2014; Guillermo Ortega and Roman with distributing methamphetamine on April 2, 2014; and Guillermo Ortega with distributing methamphetamine on April 2, 2014. It also charged Guillermo Ortega with being a felon in possession of a firearm and ammunition on April 14, 2014. The indictment alleged that the three men committed these crimes in Doña Ana County, N.M.
Roman pled guilty to Count 2 of the indictment on Sept. 23, 2015, and admitted that on April 2, 2014, he distributed 57 grams of methamphetamine to a person working with law enforcement. Roman admitted that on that day, he was contacted by an individual who wanted to purchase methamphetamine, and he in turn contacted Guillermo Ortega and arranged the deal.
Guillermo Ortega pled guilty on Sept. 3, 2015, and admitted that on April 2, 2014, he and his co-defendants distributed 95 grams of methamphetamine to a person working with law enforcement. Guillermo further admitted that on April 14, 2014, he was prohibited from being in possession of firearms or ammunition because of his previous felony conviction of felony theft. At sentencing Guillermo Ortega faces a mandatory minimum of five years and a maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
On Jan. 21, 2016, Salvador Ortega entered a guilty plea to Count 1 of the indictment without the benefit of a plea agreement. At sentencing, Salvador Ortega faces a maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Davon Lymon Pleads Guilty to Charges in One of Two Pending Federal CasesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of ATF and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division announced that Davon Lymon, 35, of Albuquerque, N.M., pleaded guilty this morning in federal court to heroin trafficking and firearms charges. Lymon entered the guilty plea without the benefit of a plea agreement to resolve the charges in one of the two federal cases pending against him.
During this morning’s proceedings, Lymon pled guilty to a three-count superseding indictment charging him with distributing heroin on Sept. 11, 2015 and Oct. 2, 2015, and unlawfully possessing a firearm on Oct. 2, 2015, in Bernalillo County, N.M. (heroin trafficking case). In Oct. 2015, Lymon was prohibited from possessing firearms because he previously had been convicted of several felony offenses including voluntary manslaughter, aggravated battery with a deadly weapon resulting in great bodily harm, fraud, and forgery.
At his sentencing hearing in the heroin trafficking case, which has yet to be scheduled, Lymon faces a statutory maximum penalty of 20 years in prison on the two heroin trafficking charges and ten years on the firearms charge.
In a separate federal case, Lymon is charged in a four-count indictment with three counts of being a felon in possession of a firearm and one count of unlawfully possessing a stolen firearm in Bernalillo County (firearms case). Counts 1 and 2 charge Lymon with unlawfully possessing a firearm on May 27, 2015, and Count 4 charges him with unlawfully possessing a firearm and ammunition on Oct. 21, 2015. Count 3 charges Lymon with unlawfully possessing a stolen firearm in late May 2015.
According to court filings, the crime charged in Count 4 of the indictment in the firearms case arises out of a traffic stop by an officer of the Albuquerque Police Department (APD) in southeast Albuquerque on the evening of Oct. 21, 2015, during which Lymon allegedly fired six rounds at the APD officer as the officer attempted to handcuff Lymon. Several rounds struck the APD officer, including one that struck the officer in the face near the chin; the officer died on Oct. 29, 2015, because of injuries sustained on Oct. 21, 2015.
Lymon has entered a not guilty plea to the indictment in the firearms case. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law. If convicted, Lymon faces a statutory maximum penalty of ten years in federal prison on each of the four counts in the indictment in the firearms case. Trial on Count 4 of the indictment in the firearms case is tentatively set for Aug. 1, 2016. A trial date on Counts 1 through 3 has yet to be set.
The heroin trafficking case was investigated by the Albuquerque offices of ATF and DEA. The firearms case was investigated by the Albuquerque office of ATF and APD, with assistance from the Albuquerque office of the FBI, the U.S. Marshals Service, the New Mexico State Police, the Bernalillo County Sheriff’s Office, the Rio Rancho Police Department and the New Mexico Transportation Police Division.
Assistant U.S. Attorneys Jacob A. Wishard and Kimberly A. Brawley are prosecuting the two cases against Lymon as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
DEA's Eleventh Pill Take Back Event Yields Fruitful Results in South Carolina & NationwideRead the Press Release
Contact Person: S/A Chuvalo Truesdell (404) 893-7124
COLUMBIA, SC – South Carolinians participating in the United States Drug Enforcement Administration’s (DEA’s) eleventh National Prescription Drug Take-Back Day Initiative (NTBI) held on Saturday, April 30, 2016, turned in 6,688 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state. This amount highest total collected statewide during the ten previous Take-Back events.
“Daniel R. Salter, the Special Agent in Charge (SAC) of the DEA Atlanta Field Division commented, “DEA’s eleventh Prescription Drug Take-Back campaign was a great success both locally and nationally. While South Carolinians turned in 6,688 pounds of unwanted or expired medications, nationally, 893,498 pounds (447 Tons) of expired and unwanted prescription medications were collected in more than 5,359 sites that were available across the United States. The local amount collected was the third highest total collected out of the ten previous Take-Back events. I would like to thank the multitude of partners (both law enforcement and non-law enforcement) who worked tirelessly to make this event another great success.”
The NTBI addresses a crucial public safety and public health issue. Surveys of opioid drug users show that the majority of them get their drugs free from friends and family, including from the home medicine cabinet. This event was a unique opportunity for Americans to make their homes and medicine cabinets safe from theft and abuse. It also helped raise awareness about the dangers of controlled prescription opioids and allowed these potentially dangerous substances to be properly disposed of in environmentally safe way.
SAC Salter encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.
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Craigslist Robber Who Impersonated Law Enforcement Sentenced to 12 Years in PrisonRead the Press Release
OAKLAND, Calif. – Tuan Ngoc Luong was sentenced today to 12 years in prison following his conviction for Hobbs Act robbery and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Acting Special Agent in Charge Bertram Fairries.
A federal jury convicted Luong, 38, of Castro Valley, Calif., on January 28, 2016, for setting up and committing an armed robbery using Craigslist as the bait to lure his robbery victim. When Luong was convicted of the charges, he already had been convicted in September 2015 of being a felon in possession of a firearm and ammunition.
Evidence at his trials showed that Luong posted an advertisement on Craigslist in February 2015 purportedly to sell his car. An unsuspecting potential buyer found the advertisement online and contacted Luong. The two agreed to meet at the Castro Valley BART station where Luong represented to the buyer that he was a sheriff’s deputy. At Luong’s urging, the victim took the car for a test drive with Luong in the car. During the test drive, Luong claimed he needed to stop at home to get the title to the car and instructed the victim to stop in a secluded residential neighborhood. After they stopped and got out of the car, Luong pulled out a black semi-automatic handgun, pointed it at the victim, and demanded money. Ultimately, Luong robbed the victim of a cellular phone, credit card, and a number of personal items before fleeing in the car. Luong was captured two days later as part of an undercover sting operation after an Alameda County Sheriff’s Deputy posed as an interested buyer in response to the same Craigslist advertisement. When Luong arrived to meet the prospective “buyer,” he was arrested with a black semi-automatic pistol clipped to his belt on the small of his back.
On March 26, 2015, a federal grand jury charged Luong in a three-count indictment with Hobbs Act robbery, in violation of 18 U.S.C. § 1951(a); brandishing a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A)(ii); and being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g).
The sentence was handed down by the Honorable Haywood S. Gilliam, U.S. District Judge. Judge Gilliam also sentenced Luong to a three year period of supervised release and ordered Luong to pay full restitution to his victim.
Assistant U.S. Attorney Brian Lewis and Special Assistant U.S. Attorney Kelsey Linnett are prosecuting the case with the assistance of Janice Pagsanjan, Jeanne Carstensen, Melissa Dorton, Patty Lau, Noble Hughes, Trina Khadoo, and Katie Turner. The prosecution is the result of an investigation by the Alameda County Sheriff’s Office and the FBI.
Community leaders recognized for exemplary efforts to improve health and wellbeing in Northern West VirginiaRead the Press Release
WHEELING, WEST VIRGINIA – During an awards ceremony held today in Wheeling, United States Attorney William J. Ihlenfeld, II recognized a variety of community leaders, volunteers, and advocates for their outstanding contributions to public health and safety in Northern West Virginia.
“Each of the individuals recognized today have worked tirelessly to implement creative solutions to improve the quality of life in West Virginia,” said Ihlenfeld. “These individuals are at the forefront of efforts to revitalize neighborhoods and inspire progress throughout our state. I am pleased to acknowledge their outstanding contributions.”
A diverse group of community leaders were recognized today, including:
Dr. Dianna Vargo first joined the Ohio County, West Virginia School System as a math teacher at Wheeling Park High School in 1983. After serving as a teacher, a cross country and track coach, and an administrator, Dr. Vargo was named Superintendent of Ohio County Schools in July 2012. During her tenure as an educator and an administrator, Dr. Vargo has always been dedicated to ensuring that the children and families that she serves are positioned to build successful and productive futures.
In an effort to loosen the grip of substance abuse and addiction, Reynolds Memorial Hospital launched the BreakThru program in September 2015. BreakThru is a medically supervised withdrawal program designed to bridge the gap that often exists between substance abuse and recovery by transitioning patients through the withdrawal process and into long-term treatment. The BreakThru program is the first of its kind in the region and has already treated more than 100 patients from throughout the tri-state area of West Virginia, Ohio, and Pennsylvania.
The Appalachia High Intensity Drug Trafficking Area (HIDTA) was established by the White House Office of National Drug Control Policy in 1998 to reduce the impact of drug trafficking. The Appalachia HIDTA, which serves counties in West Virginia, Virginia, Kentucky, and Tennessee, was recently named the 2015 Outstanding HIDTA of the Year for its leadership in bringing unique substance abuse prevention and education resources to regional youth. The “Drug Prevention On The Move!” initiative features an interactive mobile classroom and a simulated impaired driving experience. The “Give Me a Reason” program distributes free drug testing kits to parents with the goal of giving young people a tangible reason to avoid illicit drugs and facilitating productive conversations about substance abuse between parents and children.
The Young Women’s Christian Association (YWCA) of Wheeling operates a Family Violence Prevention Program to provide education, support, and services to victims of domestic violence. The program offers a variety of services to victims, including transitional housing, an emergency shelter, crisis hotline, court advocacy, support groups, safety planning, monitored parent-child visitation, employability programming, batterer’s intervention and prevention programming, and free 911 cell phones. The program has established a Teen Dating Violence Prevention initiative that employs a dedicated advocate at several local schools to provide counseling, education, and other resources to empower students to understand and pursue healthy relationships. The YWCA Family Violence Prevention Program has also been instrumental in bringing the “Coaching Boys into Men” curriculum to several local schools to promote respectful behavior among student athletes to and help prevent relationship abuse, harassment, and sexual assault.Reverend Dr. Darrell Cummings is the Chairman of the West Virginia Human Rights Commission and the Pastor of the Bethlehem Apostolic Temple in Wheeling. Cummings has dedicated his life to public service and community engagement since he was first licensed as a minister at the age of sixteen. Cummings was recognized as the 1997 Wheeling NAACP “Man of the Year,” and the 2003 West Virginia Educators Association “Civil Rights Leader of the Year.” He was also honored by former West Virginia Governor Joe Manchin, III as the 2010 Distinguished Mountaineer of the Year. Cummings also provides support to incarcerated individuals by serving in the Chaplain Department of two state prisons.
Sergeant John Schultz joined the Wheeling Police Department since 1995 and has built a career dedicated to public safety. As a Prevention Resource Officer at Wheeling Middle School, Sergeant Schultz consistently finds creative and impactful ways to empower and inspire local young people. He was recognized as the 2014 Prevention Resource Office of the Year. During a June 2015 field trip to Wheeling Park Pool, Schultz was instrumental in saving the life of an eighth grade boy who nearly drowned after becoming unresponsive in the pool.
The United States Attorney’s Awards ceremony was held at the United States Courthouse in Wheeling today. A variety of Northern West Virginia community leaders and advocates were in attendance.
Citizen of Honduras Pleads Guilty to Illegal ReentryRead the Press Release
ROANOKE, VIRGINIA – A citizen of Honduras, who has been removed from the United States or voluntarily returned to Mexico at least five times, pled guilty today in Federal Court for the illegally reentering the United States after previously being deported, United States Attorney John P. Fishwick Jr. announced.
Elmer Navarro-Navarro, 37, a citizen of Honduras, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to one count of reentering the United States after being previously being removed due to a conviction for an aggravated felony.
“We will continue to work with our partners to enforcement our immigration laws,” United States Attorney John P. Fishwick Jr. said today. “Ensuring that those who have been justly removed from the United States do not return is paramount to keeping our country safe.”
According to evidence presented at today’s hearing by Assistant United States Attorney C. Patrick Hogeboom III, Navarro-Navarro came to the attention of Immigration and Customs Enforcement after being arrested for malicious wounding in Roanoke City. Navarro-Navarro has been removed from the United States, or has voluntarily returned to Mexico in November 1996, February 9, 1998, February 13, 1998, April 1999 and April 2005 after serving a sentenced related to an illegal reentry conviction.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement, the Roanoke City Police and the Franklin County Sheriff’s Office. Assistant United States Attorney C. Patrick Hogeboom III prosecuted the case for the United States.
Charleston drug dealer pleads guilty to Federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal methamphetamine charge, announced Acting United States Attorney Carol Casto. Terrus Carter, 36, entered his guilty plea to conspiracy to distribute a controlled substance.
Carter admitted that from December 2015 to March 2016, he conspired with Alisha Watts to distribute methamphetamine from their residence at 7270 Stonebrook Road in Charleston. Carter further admitted that he would bring methamphetamine and marijuana to the residence to store, repackage, and distribute the drugs. Watts permitted this criminal activity in exchange for Carter paying the rent and all of the bills at the residence.
On March 18, 2016, law enforcement executed a search warrant at the Stonebrook residence and seized a loaded handgun, over 620 grams of methamphetamine, over 120 pounds of marijuana, and over $34,000 in cash. On March 20, 2016, officers executed another search warrant at 111 1st Avenue in St. Albans. During the execution of the search warrant, Carter attempted to flee out of the back door and was quickly detained by law enforcement. Officers discovered over $45,000 in cash at the St. Albans residence. As part of his plea agreement, Carter agreed to forfeit the St. Albans residence and the cash seized by law enforcement.
Carter faces a minimum of five years and up to 40 years in federal prison when he is sentenced on August 18, 2016. Watts previously pleaded guilty in April 2016 to maintaining a drug-involved premises. Watts faces up to 20 years in federal prison when she is sentenced on August 17, 2016.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman is handling the prosecution. The hearing was held before United States District John T. Copenhaver, Jr.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of drugs in communities across the Southern District.
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California Man Pleads Guilty to Selling Unapproved Drug in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – Adam Alden, 29, of Bakersfield, CA, pleaded guilty today in U.S. District Court in Fresno, CA, to distributing 2,4-Dinitrophenol (DNP), a chemical used as a dye, wood preserver and herbicide, among other things, which he marketed as an extreme weight loss drug. Alden pleaded guilty to one count of introducing an unapproved drug into interstate commerce.
According to court documents and information presented to the court, a Rhode Island customer who purchased DNP from Alden, among other sources, died in October 2013 as a result of DNP ingestion. It cannot be established beyond a reasonable doubt whether or not the DNP sold by Alden caused the customer’s death.
Alden’s guilty plea before U.S. District Court Magistrate Judge Stanley A. Boone is announced by United States Attorney Peter F. Neronha of the District of Rhode Island, United States Attorney Benjamin B. Wagner of the District of Eastern California, and Russell Herman, Acting Special Agent in Charge of the Food and Drug Administration’s Office of Criminal Investigations.
According to court documents and information presented to the court, an investigation by a U.S. Food and Drug Administration task force in Rhode Island determined that between August 2013 and January 2014, the defendant sold DNP on eBay to customers throughout the United States including Rhode Island, advertising that the product was intended for human consumption as a weight loss product. DNP is a chemical used as a dye, wood preserver and herbicide among other things. Nevertheless, it has been marketed over the years as “extremely dangerous and not fit for human consumption” under the Food and Drug Cosmetic Act of 1938.
According to court documents and information presented to the court, Alden made approximately $500 in profits from his DNP sales on eBay.
Alden is scheduled to be sentenced by U.S. District Court Magistrate Judge Stanley A. Boone on July 19, 2016. Introducing an unapproved drug into interstate commerce is punishable by up to one year in federal prison or 5 years probation; and a $100,000 fine or twice the gain/loss from the offense.
The case is being prosecuted in the District of Rhode Island by Assistant U.S. Attorney Adi Goldstein and in the Eastern District of California by Assistant U.S. Attorney Katherine A. Plante.
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Contact:
Jim Martin (401) 709-5357
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