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4 May 2016
Fort Thompson Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Stuart Dion, age 32, was indicted on December 8, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 29, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 1, 2015, and December 8, 2015, Dion, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and Dion is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Dion was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former South Carolina State Trooper Convicted of Conspiracy to Distribute A Controlled SubstanceRead the Press Release
SAN FRANCISCO- A federal jury convicted John David McGaha today of conspiracy to distribute a controlled substance, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Acting Special Agent in Charge Bertram Fairries.
McGaha, 36, of Myrtle Beach, South Carolina, was charged, along with six co-conspirators, with conspiracy to distribute a controlled substance and conspiracy to possess with intent to distribute a controlled substance as part of a superseding indictment filed March 24, 2015. McGaha was a state trooper with the South Carolina Highway Patrol at the time of the charged conduct. McGaha was accused of agreeing to accept $5,000 in exchange for providing security during a planned drug transaction.
The superseding indictment described a criminal conspiracy that worked for years laundering what the defendants believed to be the proceeds of cocaine trafficking. According to the indictment, some of the defendants eventually decided to become drug traffickers themselves. The evidence at trial showed that other members of the conspiracy asked McGaha to protect a drug transaction that would take place the following day. McGaha stated that the less he knew about the transaction the better, but he agreed to be present at the transaction in his marked Highway Patrol car. Later, McGaha was questioned by investigating agents from the Federal Bureau of Investigation and he admitted he met with the co-conspirators, that he was asked to be present in a parking lot while the business was conducted, that he knew the transaction was illegal, and that he accepted $5,000 to be present in the parking lot.
The jury found that McGaha conspired to distribute a controlled substance or to possess a controlled substance with the intent to distribute it, in violation of 21 U.S.C. § 846. Each of his co-conspirators pleaded guilty to charges related to the conspiracy.
The guilty verdict followed a four-day jury trial before the Honorable William Alsup, U.S. District Court Judge. McGaha remains free pending his sentencing scheduled for August 23, 2016, before Judge Alsup, in San Francisco.
Assistant U.S. Attorneys Lloyd Farnham and Andrew Dawson are prosecuting the case with the assistance of Michelle Alter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Federal Correctional Officer Sentenced to Seven Years for Sexually Abusing an InmateRead the Press Release
Earlier today at the federal courthouse in Brooklyn, New York, Rudell L. Clark Mullings, a former federal correctional officer at the Metropolitan Correctional Center (MCC) in Manhattan, was sentenced to seven years’ imprisonment by United States District Judge Edward R. Korman.
On February 14, 2015, Mullings was working as a correctional officer at the MCC. On that day, he was tasked with overseeing a female inmate, who was cleaning the hallways and corridors of the MCC. Mullings approached the inmate and sexually assaulted her in the corridor. Thereafter, Mullings returned to the hallway to ensure no security cameras had caught the assault. A DNA test later confirmed that Mullings had engaged in sex with the victim.
Mullings pled guilty to sexual abuse of an inmate on November 23, 2015.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Ronald G. Gardella, Special Agent in Charge, United States Department of Justice, Office of the Inspector General, New York Field Office.
In announcing the sentencing, Mr. Capers extended his grateful appreciation to the Office of the Inspector General.
The government’s case is being prosecuted by Assistant United States Attorney Hiral D. Mehta.
The Defendant:
RUDELL L. CLARK MULLINGS
Age: 54
Brooklyn, New YorkE.D.N.Y. Docket No. 15-CR-538 (ERK)
Federal Court of Appeals Affirms Conviction and Sentence of Aaron Johnson in Federal Farm Fraud CaseRead the Press Release
Fargo – U.S. Attorney Christopher C. Myers announced that on May 4, 2015, the United States Court of Appeals for the Eighth Circuit has affirmed the conviction and sentence of Aaron A. Johnson.
Aaron A. Johnson, along with his brother Derek M. Johnson, farmed potatoes in eastern North Dakota for many years. A federal grand jury indicted the two brothers for fraudulently damaging their own potato crops to obtain crop insurance and disaster payments and then lying to cover up their fraud from at least as early as 2002 until approximately January 20, 2010. In particular, the grand jury alleged that the brothers intentionally damaged their potato seeds and harvested crops through various means, including: (1) adding chemicals such as septic system products Rid-X and Flush to their potato seeds and harvested crops; (2) piling frozen potatoes onto their stored potatoes; and (3) adding extreme heat to their stored potatoes. At the conclusion of a two-week trial, on December 11, 2014, the jury returned verdicts convicting both brothers on all counts.
On March 9, 2015, U.S. District Judge Ralph R. Erickson sentenced Aaron Johnson to four years’ imprisonment, followed by five years of supervised release. Judge Erickson sentenced Derek Johnson to eighteen months’ imprisonment, followed by five years of supervised release. Judge Erickson also ordered forfeiture and restitution as joint obligations in the amount of $932,000. Derek Johnson did not appeal his conviction or sentence.
The United States Secretary of Agriculture (USDA) acknowledged the national significance of this case to the federal farm programs when the Secretary of Agriculture recognized the case with the USDA’s 2015 “Award for Excellence” recognition.
United States Attorney Christopher C. Myers also emphasized the importance of this prosecution on the federal farm programs: “Federal programs like the federal farm programs are based on an honor system. Unfortunately, there are a few who take advantage of this system and some, like Aaron Johnson, who brag about defrauding the system. Today’s affirmance of his conviction and sentence sends a clear message to all those honest farmers who follow the rules and hate seeing some people take advantage of the system.”
The case was investigated by the United States Department of Agriculture and the Risk Management Agency.
Assistant U.S. Attorneys Clare Hochhalter and Nick Chase prosecuted the case.
Father of Investment Banker Sentenced in Manhattan Federal Court for Million-Dollar Insider Trading SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROBERT STEWART, a/k/a “Bob,” was sentenced to four years’ probation, with the first year to be served in home detention, and $150,000 in forfeiture for conspiring to use inside information provided by Sean Stewart, the defendant’s son and co-conspirator, to trade and cause another to trade in the securities of five different health care companies. The insider trading conspiracy spanned over four years and generated profits of approximately $1.16 million, with STEWART himself reaping approximately $150,000 of those gains. ROBERT STEWART pled guilty on August 12, 2015, to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer before the Honorable James C. Francis, United States Magistrate Judge. U.S. District Court Judge Laura Taylor Swain imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Robert Stewart received nonpublic mergers and acquisitions information from his investment banker son, and then used this illegal edge to earn substantial trading profits. Stewart has admitted to violating federal securities laws and now stands a convicted felon.”
According to the Complaint, Indictment, other documents filed in the case, and statements made in open court:
In early 2011, Sean Stewart, who at the time held the position of Vice President in the Healthcare Investment Banking Group of a global bank headquartered in Manhattan (“Investment Bank A”), began tipping his father, ROBERT STEWART, with nonpublic information about upcoming mergers and acquisitions. The first of these deals involved the acquisition of Kendle International Inc. by INC Research, LLC, which was announced publicly on May 5, 2011. Sean Stewart worked on the deal, representing Kendle. ROBERT STEWART made about $7,900 in profits on purchases of Kendle stock executed in February and March of 2011. When questioned about his Kendle trades by the Securities and Exchange Commission in May 2013, ROBERT STEWART reported that he used the proceeds of those trades to pay expenses related to Sean Stewart’s June 2011 wedding.
The second deal about which Sean Stewart tipped ROBERT STEWART was the acquisition of Kinetic Concepts, Inc. (“KCI”) by Apex Partners, announced on July 13, 2011. Although ROBERT STEWART purchased some stock in KCI based on Sean Stewart’s tip, he sold that stock before the acquisition was announced, around the same time that Sean Stewart learned the Financial Industry Regulatory Authority was conducting an inquiry into ROBERT STEWART’s Kendle trading.
Also around this time, in the spring of 2011, ROBERT STEWART expressed a concern to Richard Cunniffe, a co-conspirator and cooperating witness, that ROBERT STEWART was “too close to the source” to be trading KCI stock in his own account, and asked Cunniffe to make purchases of KCI call options for ROBERT STEWART in Cunniffe’s brokerage account. Cunniffe agreed to do so, and also mirrored for his own benefit the KCI trades that ROBERT STEWART was directing.
When the KCI/Apax Partners deal was announced, ROBERT STEWART and Cunniffe reaped profits totaling approximately $107,790. Around this time, ROBERT STEWART told Cunniffe that the source of the KCI tip and the earlier Kendle tip had been ROBERT STEWART’s son. Later, around the spring of 2012, ROBERT STEWART clarified for Cunniffe that the son in question was Sean Stewart, who worked on the “sell side” on Wall Street.
In October 2011, Sean Stewart left Investment Bank A. A few months later, he joined an investment banking advisory firm headquartered in Manhattan (“Investment Bank B”) as a Managing Director.
During Sean Stewart’s tenure with Investment Bank B, based on tips concerning nonpublic acquisition-related information supplied by Sean Stewart, ROBERT STEWART had Cunniffe conduct options trading in advance of the public announcements of three more deals: (1) the acquisition of Gen-Probe Inc. by Hologic, Inc., announced on April 30, 2012; (2) the acquisition, by tender offer, of Lincare Holdings Inc. by Linde AG, announced on July 1, 2012; and (3) the acquisition of CareFusion Corp. by Becton, Dickinson & Co. (“Becton”), announced October 4, 2014. Investment Bank B represented Hologic in connection with its acquisition of Gen-Probe; Linde in connection with its acquisition of Lincare; and CareFusion in connection with its acquisition by Becton. The profits that ROBERT STEWART and Cunniffe reaped from illegal insider trading in advance of the announcements of these three deals totaled over $1 million.
To try to avoid detection for their crimes, ROBERT STEWART and Cunniffe refrained from speaking explicitly about their trading over the phone or via e-mail, sometimes using codes to hide their criminal activity from authorities who might be listening to their phone calls or reading their email. Other steps ROBERT STEWART and Cunniffe took to avoid detection included trying to discuss their trading at face-to-face meetings and adopting a profit-splitting mechanism that had Cunniffe paying ROBERT STEWART his portion of the illegal proceeds in small increments, over time, typically in cash.
In March and April of 2015, Cunniffe recorded meetings he had with ROBERT STEWART. During one such meeting, ROBERT STEWART accepted a payment of $2,500 cash from Cunniffe, which was the balance of the proceeds owed to ROBERT STEWART for profitable trading executed in Cunniffe’s account in advance of the CareFusion acquisition announcement. Also during this meeting, ROBERT STEWART admitted that Sean Stewart once chastised him for failing to make use of a tip, saying, “I can’t believe I handed you this on a silver platter and you didn’t invest in it.”
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ROBERT STEWART, a/k/a “Bob,” 61, of North Merrick, New York, was sentenced to four years’ probation, with the first year to be served in home detention, $150,000 in forfeiture, and a $100 special assessment.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the Securities and Exchange Commission, which has brought civil actions against the defendant.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Sarah E. McCallum and Brooke E. Cucinella are in charge of the prosecution.
Fatal Car Crash in Great Smoky Mountains National Park Nets Driver 36 Months in Federal Prison for Involuntary ManslaughterRead the Press Release
KNOXVILLE, Tenn. – On May 4, 2016, Joshua Michael Sizemore, 26, of Morristown, Tenn., was sentenced by the Honorable Thomas W. Phillips, Senior U.S. District Judge, to serve 36 months in federal prison for involuntary manslaughter for killing Ashley Marie Trent. Upon his release from prison, he will be supervised by the U.S. Probation Office for three years.
In November 2015, Sizemore pleaded guilty to the offense described above. According to documents on file with U.S. District Court, on Oct. 4, 2014, after drinking alcohol, Sizemore crashed his car while driving within the Great Smoky Mountains National Park (GSMNP). At the time of the crash, he had three passengers in his car. Two of the three suffered serious bodily injuries. The third, Trent, suffered multiple blunt force injuries resulting in her death. Sizemore’s car contained a black box that recorded the car’s speed at 97 miles per hour two seconds prior to the crash in a 45 mile per hour zone on the GSMNP Spur.
The case was investigated by the National Park Service. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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Escaped Prisoner Pleads Guilty to Assaulting a Federal Officer in Order to Evade CaptureRead the Press Release
TULSA, Okla.—Ronald Gene Thomas, 38, pleaded guilty in federal court today to the charge of Assaulting a Federal Officer, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. United States District Court Judge John E. Dowdell will sentence Thomas on July 13, 2016.
On June 8, 2015, Thomas escaped from the Jackie Brannon Correctional Center in McAlester, Oklahoma. A team of law enforcement officers were assembled to apprehend Thomas, which included: The United States Marshals Services in the Eastern and Northern District of Oklahoma, the Oklahoma Department of Corrections Investigators, and the Eastern Oklahoma Violent Crimes Fugitive Task Force.
On June 9, 2015, law enforcement tracked Thomas to a home in Sapulpa, Oklahoma. Thomas was spotted driving a truck and ordered to surrender. However, Thomas drove his truck straight at a Deputy United States Marshal in order to force him to get out of his way so he could evade capture. Thomas avoided capture that day, but he was apprehended days later after a high speed chase.
“Law enforcement officers put their lives on the line every day they go to work in order to keep the public safe. The safety of those officers is a paramount concern to the United States Attorney’s Office,” stated United States Attorney Williams.
This case was investigated by the United States Marshals Services in the Eastern and Northern District of Oklahoma, the Oklahoma Department of Corrections Investigators, and the Eastern Oklahoma Violent Crimes Fugitive Task Force. Assistant United States Attorney Neal C. Hong prosecuted the case.
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Eighth Circuit Court of Appeals Affirms Conviction and Sentence of Belle Fourche Man for Commercial Sex TraffickingRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the federal conviction and sentence of a Belle Fourche, South Dakota, man.
Jerry Lane Golliher, age 33, was convicted in October of 2014, in federal district court in Rapid City of Commercial Sex Trafficking. The conviction stemmed from Golliher attempting to have sex with a 13 year-old girl for $150 during the 2013 Sturgis Motorcycle Rally. In February of 2015, the district court sentenced Golliher to 15 years’ imprisonment.
During his trial, the federal jury heard that Golliher negotiated online with an undercover agent posing as a “pimp” to engage in sexual acts with a 13 year-old girl in exchange for money, and that he showed up at the meeting time and place with the appropriate amount of money, and confirmed he was there to have sex with the girl.
In his appeal, Golliher argued that: (1) trial counsel was ineffective, prejudicing Golliher’s defense; the district court, the Honorable Karen E. Schreier, U.S. District Court Judge for the District of South Dakota, erred by (2) committing prejudicial error in refusing to admit evidence offered by Golliher in support of his defense; and (3) abused its discretion by not allowing the jury to review trial testimony during deliberations; and (4) the government’s misconduct deprived Golliher of a fair trial.
In the published opinion, the federal court of appeals affirmed the district court in all respects.
Assistant U.S. Attorneys Sarah B. Collins and Ben Patterson prosecuted the case at trial, and Assistant U.S. Attorney Kevin Koliner handled the appeal for the government. The investigation was conducted jointly by the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office.
Eight Charged in Drug Conspiracy Operating in Rutherford and Cleveland CountiesRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced that eight individuals are facing multiple federal drug charges for their involvement in a drug conspiracy operating in Rutherford and Cleveland Counties. A criminal indictment was returned on April 21, 2016, and was unsealed today in federal court. Law enforcement arrested yesterday six of the eight charged during an early morning round-up. One defendant was previously in custody and one has not been arrested yet.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Sheriff Chris Francis of the Rutherford County Sheriff’s Office and Sheriff Alan Norman of the Cleveland County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the criminal indictment, from on or about May 2015 to about January 2016, the defendants operated as a drug conspiracy responsible for trafficking cocaine and crack cocaine in and around Rutherford and Cleveland Counties. Over the course of the investigation law enforcement have seized narcotics and three firearms.
The eight defendants named in the 22-count indictment are each charged with conspiracy to distribute cocaine and crack cocaine and related drug offenses. They are:
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Kevin McArthur Bailey, 37, of Shelby, N.C. (previously in custody)
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James Rollins Glover, Jr., 30, of Spindale, N.C. (arrested)
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Anthony Price Laney, 34, of Forest City, N.C. (arrested)
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Lonnie McDowell, 65, of Shelby, N.C. (arrested)
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Craig Vinshun Mosley, 32, of Forest City, N.C. (not arrested yet)
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Justin Latrey Mosley, 26, of Forest City, N.C. (arrested)
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Vincent G. Mosley, 55, of Forest City, N.C. (arrested)
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Heather Michelle Shehan, 28, of Rutherfordton, N.C. (arrested)
(See chart below for federal charges and penalties for each defendant).
In making today’s announcement, U.S. Attorney Rose said, “The arrests in this case are part of my office’s ongoing effort to combat drug trafficking throughout our district.I want to thank all the law enforcement agencies that participated in this investigation for joining forces in our fight against drug distribution and the violence that comes with drug trafficking.”
“The Rutherford County Sheriff’s Office is committed to reducing drug availability and the negative side effects that come along with illegal narcotics distribution. We believe working with our local, state, and federal partners to build and take strong cases to the US Attorney's Office for prosecution is an extremely effective strategy. Without our strong working relationship with the ATF, the results of this investigation and its long lasting positive impacts on our communities would not be possible. I am grateful for these valuable partnerships,” said Rutherford County Sheriff Francis.
The defendants will appear in federal court today in Asheville before a U.S. Magistrate Judge. The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville is handling the prosecution.
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Edgemont Man Indicted for Multiple OffensesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Edgemont, South Dakota, man has been indicted by a federal grand jury for Transportation of a Minor, Attempted Enticement of a Minor Using the Internet, and Transfer of Obscene Material to a Minor.
Darren Scott Heller, age 48, was indicted on March 22, 2016. Heller appeared before U.S. Magistrate Judge Daneta Wollmann on April 29, 2016, and pleaded not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 10 years up to life imprisonment and/or a $250,000 fine, 5 years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Heller transporting a minor female intending to engage in sexual activity with her, and using the internet and cellular connections to attempt to persuade her to engage in sexual activity and to send her obscene material. The charges are merely an accusation and Heller is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Heller was released on bond pending trial.
Eagle Woman Pleads Guilty to Obtaining Controlled Substances by Fraud and Identity TheftRead the Press Release
BOISE - Susan Roberts, 57, of Eagle Idaho, pleaded guilty today in United States District Court to obtaining controlled substances by fraud and identity theft by unauthorized use of a means of identification, U.S. Attorney Wendy J. Olson announced.
According to the filed plea agreement, Roberts worked with a medical center that had offices in Nampa and Boise, Idaho. As a result of her employment, she had access to doctors’ names and DEA numbers and knowledge of the prescription writing process. Between October 2014 and February 2015, Roberts knowingly and intentionally forged approximately eleven prescriptions for hydrocodone-acetaminophen 10-325, a Schedule II controlled substance. In particular, she forged prescriptions using the names of Dr. H. and Dr. A, and using their assigned DEA registration numbers. These were actual doctors and their names and DEA numbers constituted means of identification as defined at 18 U.S.C. § 1028(d)(7). Roberts presented the forged prescriptions to pharmacies, and received by fraud approximately 1,320 dosage units (pills) of hydrocodone-acetaminophen 10-325, which is commonly referred to by the name brands Norco, Vicodin, or Lortab.
The charge of obtaining controlled substances by fraud is punishable by up to four years in prison, three years of supervised release, and a $250,000.00 fine. Identity theft by unauthorized use of a means of identification is punishable by up to five years prison, three years of supervised release, and a $250,000 fine. Prison can be up to 15 years if the offense obtained anything of value aggregating $1,000 or more during any one year period.
Sentencing is scheduled for July 27, 2016, before Senior U.S. District Judge Edward J. Lodge.
The case was investigated by the DEA Office of Diversion Control, assisted by the Tactical Diversion Squad.
Detroit man pleads guilty to role in interstate heroin trafficking networkRead the Press Release
CLARKSBURG, WEST VIRGINIA – Draylon Eric Beecham, 40, of Detroit, Michigan, pled guilty to heroin trafficking today, United States Attorney William J. Ihlenfeld, II, announced.
Beecham participated in a heroin trafficking network designed to transport heroin across state lines from Michigan to West Virginia for redistribution and sale. Beecham was among fourteen individuals charged with heroin trafficking when three separate federal indictments disrupted the drug trafficking scheme in February 2016.Specifically, Beecham sold heroin in January 2015 near an elementary school in Monongalia County, West Virginia. He pled guilty today to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Commercial driver’s license skills examiner pleads guilty to falsifying test resultsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Louisiana third party commercial driver’s license skills examiner pleaded guilty to falsifying test results by indicating a passing grade for driving skills tests that never took place.
Christopher D. Pender, 40, of Stonewall, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of making and using a false writing and document. According to the guilty plea, Pender, who was certified to administer commercial driver’s license skills tests, provided an applicant with a “Commercial Driver’s Skills Test Certificate” in November of 2014 when the applicant had not even taken, much less passed, the federally required test. He did this in exchange for cash, which allowed the applicant to fraudulently obtain a Louisiana commercial driver’s license.
Pender faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine. Sentencing is scheduled for September 8, 2016.
The U.S. Department of Transportation Office of Inspector General and the Louisiana State Police conducted the investigation. Assistant U.S. Attorneys William J. Flanagan and Michael O’Mara are prosecuting the case.
Cleveland, Va. Man Pleads to Federal Gun ChargesRead the Press Release
ABINGDON, VIRGINIA – A Russell County man, who was prohibited from possessing firearms due to previous criminal convictions, pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to being in possession of a variety of guns, guns parts and a blasting cap, United States Attorney John P. Fishwick Jr. announced.
Roger Allen Combs, 50, of Cleveland, Virginia, pled guilty yesterday in District Court to one count of possession of an explosive device by a convicted felon, one count of possession of a firearm not registered on the National Firearms Registry and Transfer Record and one count of being a convicted felon illegally in possession of a firearm.
“Keeping illegal guns out of the hands of prohibited users is critical in keeping our communities safe,” United States Attorney John P. Fishwick Jr. said today. “We want to continue to work with our partners in law enforcement to find these illegal guns and get them off the streets.”
According to evidence presented at previous hearings by Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton, Combs, who has several prior criminal convictions, was observed by law enforcement coming in and out of a storage unit in Russell County with a bag. Law Enforcement officers executed a traffic stop on a vehicle Combs was traveling in and found a firearm. Based on that evidence, officers obtained a search warrant for the storage unit where they found several guns, parts of guns, ammunition and a blasting cap.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Russell County Sheriff’s Office and the Virginia State Police. Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton prosecuted the case for the United States.
Cleveland men indicted for cocaine conspiracyRead the Press Release
Two Cleveland men were indicted for conspiring to possess with intent to distribute cocaine, said Acting U.S. Attorney Carole S. Rendon.
Indicted are Noel Del Valle Cruz, 31, and Carlos Juan Torres Mendoza, 36.
They are accused of conspiring to distribute 500 grams or more of cocaine between January and April, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the U.S. Postal Inspection Service.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man indicted on firearms and assault chargesRead the Press Release
A federal grand jury returned a three-count indictment charging Maurice J. Sinkfield, 33, of Cleveland, with assaulting federal officers as well as firearms offenses, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Sinkfield, who was wanted on an arrest warrant, assaulted a Deputy U.S. Marshal and a Special Deputy U.S. Marshal with a motor vehicle. Sinkfield also possessed a firearm and ammunition despite prior convictions for robbery and domestic violence that precluded him from having firearms.
Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California man indicted for bringing a kilo of methamphetamine to ClevelandRead the Press Release
A federal grand jury returned a two-count indictment charging a California man with trafficking methamphetamine, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and U.S. Drug Enforcement Administration Special Agent in Charge Timothy J. Plancon.
George Schepp, 53, brought in more than one kilogram of methamphetamine for distribution in the Cleveland area in April. Based on the methamphetamine’s purity, Schepp trafficked into Cleveland at least 10,000 doses of methamphetamine.
Metroparks rangers seized methamphetamine, cocaine, ecstasy, LSD, GHB and marijuana during a traffic stop earlier this year. That led to information that Schepp regularly brings two to three pounds of methamphetamine to Cleveland from the Los Angeles area. Schepp normally drove the methamphetamine to Cleveland but sometimes flew it in, according to court documents.
Schepp was arrested on April 10 at the baggage claim area at Cleveland Hopkins Airport. This happened after a drug dog alerted to the presence of narcotics on Schepp’s suitcase, according to court documents.
“This defendant brought drugs worth tens of thousands of dollars into our community from California,” Rendon said. “The law enforcement agents who worked this case should be credited for turning routine police work into a major drug bust.”
Plancon said: “Methamphetamine is a dangerous and addictive drug. Thanks to good investigative work and cooperation between our law enforcement partners, we have successfully halted this individual from regularly importing large amounts of this addictive drug into Ohio to be distributed and ultimately consumed.”
“We are pleased to have launched an investigation, and worked side-by-side with our law enforcement partners at the DEA, to help disrupt the supply of methamphetamine to Greater Cleveland,” said Chief Daniel J. Veloski of the Cleveland Metroparks Rangers. “Through collaborative efforts such as this, we are able to significantly curtail drug trafficking and safeguard our communities.”
Assistant U.S. Attorney Matt Cronin is prosecuting the case following an investigation by the Drug Enforcement Administration, the Cleveland Metroparks Ranger Department and the Lakewood Police Department.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Found Guilty in Manhattan Federal Court of Orchestrating $31 Million Mortgage Modification Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program (“SIGTARP”), announced that DIONYSIUS FIUMANO, a/k/a “D,” was found guilty late yesterday in Manhattan federal court of orchestrating a massive mortgage modification scheme through which he and his co-conspirators defrauded more than 30,000 American homeowners out of a total of approximately $31 million.
Manhattan U.S. Attorney Preet Bharara said: “Dionysius Fiumano was the ringleader of a heartless criminal conspiracy that preyed on desperate homeowners struggling to pay their mortgages. Claiming to offer a lifeline to homeowners, Fiumano deceived tens of thousands into paying exorbitant fees for mortgage modification services they never got.”
Special Inspector General Christy Goldsmith Romero said: “A jury convicted Dionysius Fiumano for his role in orchestrating an elaborate advance fee scheme that defrauded more than 30,000 struggling homeowners out of more than $30 million. Using the Treasury’s Home Affordable Modification Program (HAMP) as the backdrop for their fraud, Fiumano and his co-conspirators conned homeowners who had fallen behind on their mortgage payments into believing their mortgages were being modified. In reality, they did little or nothing to help these homeowners. And when consumer complaints attracted attention, the co-conspirators renamed their companies to continue the fraud. These crimes were uniquely despicable, as HAMP is a free federal government housing program designed to help those most impacted by the financial crisis. Rather than offer relief, Fiumano added to the distress and despair of thousands of innocent Americans struggling to stay in their homes.”
According to the Indictment other filings in Manhattan federal court and the evidence presented at trial:
FIUMANO was the general manager of sales at Vortex Financial Management, Inc., a/k/a Professional Marketing Group, a/k/a Professional Legal Network (“PMG”), an Irvine, California, company that offered purported “mortgage modification” services, that is, assistance persuading the homeowner’s lender to agree to a modification to the terms of the homeowner’s mortgage to make it more affordable. In that capacity, FIUMANO oversaw PMG’s sales staff of approximately 65 telemarketers and managers.
From about November 2011 through May 2014, FIUMANO perpetrated a scheme to defraud homeowners in dire financial straits who were seeking relief through government mortgage relief programs. Through a series of false and fraudulent representations, FIUMANO duped thousands of homeowners into paying thousands of dollars each in up-front fees in exchange for little or no mortgage modification service. In total, through their scheme, FIUMANO and his co-conspirators obtained approximately $31 million from more than 30,000 victim-homeowners throughout the United States.
PMG purchased thousands of “leads,” consisting of the name, address, and other contact information of homeowners who had fallen behind in making mortgage payments on their homes. PMG then sent false and fraudulent solicitation letters by e-mail to the homeowners they identified through the “leads,” misleading these homeowners into believing that their mortgages were already under review and that new, modified rates had already been contemplated and approved by the homeowners’ lenders.
At FIUMANO’s direction, FIUMANO’s sales staff called and emailed homeowners who received PMG’s fraudulent solicitations. During these calls, in an effort to convince the homeowners to pay up-front fees, FIUMANO, through his sales staff, regularly lied to homeowners, including by saying that (a) the homeowners were retaining a “law firm” and an “attorney” who would complete a mortgage modification application and negotiate aggressively on the homeowners’ behalf with banks to modify the terms of the homeowners’ mortgages; (b) the homeowners had been “pre-approved” or “pre-qualified” to receive a mortgage modification; (c) PMG employed underwriters who would calculate and guarantee the homeowners a new, modified rate and monthly mortgage payment; and (d) the up-front fees paid by the homeowners would be paid directly to the homeowners’ lenders, to the attorneys to pay their fees, or to pay the purported “hard costs” of the modification. In truth and in fact, and as FIUMANO well knew, all of these representations were false.
* * *
FIUMANO, 43, of Irvine, California, was convicted of one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a statutory maximum sentence of 20 years in prison. FIUMANO is scheduled to be sentenced by U.S. District Judge John F. Keenan on September 13, 2016, at 11:00 a.m.
Three other co-conspirators have also been convicted for their roles in the scheme:
Pedram Abghari, a/k/a “Ted Allen,” 38, of Irvine, California, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a statutory maximum sentence of 20 years in prison, and one count of misprision of a felony, which carries a statutory maximum sentence of three years in prison.
Justin Romano, 41, of Blue Point, New York, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
Mahyar Mohases, 33, of Irvine, California, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
Abghari, Romano, and Mohases are scheduled to be sentenced in the coming months.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the Office of the Special Inspector General for the Troubled Asset Relief Program.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward A. Imperatore and Patrick Egan are in charge of the prosecution.
California Man Arraigned on Federal Sex Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Cordny Henry, 29, of Oakland, Calif., was arraigned this morning in federal court in Albuquerque, N.M., on a superseding indictment charging him with a sex trafficking charge. Henry entered a not guilty plea to the superseding indictment. Henry’s co-defendant, Juanita Williams, 27, of Pittsburg, Calif., previously entered a not guilty plea to the superseding indictment on May 2, 2016.
The superseding indictment, which was filed on April 26, 2016, charges Henry and Williams with commercial sex trafficking. It alleges that Henry and Williams used force, threats of force and coercion to cause a minor child to engage in a commercial sex act. According to the superseding indictment, Henry and Williams committed the crime in Bernalillo County, N.M., and elsewhere between Sept 2, 2015 and Sept. 12, 2015. The superseding indictment modified an earlier filed indictment against Williams by adding Henry as a defendant.
According to court filings, the Bernalillo County Sheriff’s Office initiated the investigation leading to the charge in the superseding indictment in mid-Sept. 2015, after the victim, who was then in California, contacted a local detective and reported that she had been the victim of sexual abuse. The investigation revealed that the victim, who was then 13-years-old, allegedly had been trafficked for sex by Henry during the first two weeks of Sept. 2015. Williams allegedly was identified as Henry’s accomplice. Henry and Williams allegedly forced the victim to earn a minimum of $500 per day by engaging in sex with customers, and Henry allegedly kept the money generated by prostituting the victim. Henry and Williams allegedly forced the victim to engage in commercial sex acts in Albuquerque and then transported her to Los Angeles, Calif., where the criminal activity continued.
Charges initially were filed against Henry and Williams in March 2016, after the investigation identified them as the individuals who trafficked the victim. Williams was arrested on March 15, 2016 and Henry was arrested on April 8, 2016. Both remain in custody pending trial, which has yet to be scheduled.
If convicted of the crime charged in the superseding indictment, Henry and Williams each face a statutory mandatory minimum penalty of 15 years and a maximum penalty of life in prison. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Buffalo Man Indicted on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Antonio Eldridge, 27, of Buffalo, NY, with being a felon in possession of a firearm. The charge carries a maximum sentence of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the indictment, on March 11, 2016, the Buffalo Police Department received information that the defendant, a convicted felon, had displayed a firearm to children. During this investigation, officers located Eldridge hiding in a basement crawl space of the children’s residence. Officers recovered a Winchester Model 69A .22 caliber rifle hidden under a mattress in this residence. The defendant had previously been issued an order of protection to keep away from both the children and the residence. As a convicted felon, Eldridge is prohibited from legally possessing a firearm.
The indictment is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Boise Man Sentenced to Prison for Gun CrimeRead the Press Release
BOISE – Jesse Starkey, 35, of Boise, Idaho, was sentenced today in United States District Court to 30 months in prison for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered that Starkey’s 30 month sentence is to run concurrent to a state sentence that he is currently serving. After his period of imprisonment, Starkey will have to serve three years of supervised release and have no contact with gang members. Starkey entered a guilty plea in February 2016.
According to court documents, law enforcement stopped a vehicle Starkey was driving. During the stop, officers discovered Starkey was on parole for aggravated assault. Starkey and a passenger in the vehicle were asked to step out and speak with officers. Officers noticed two knives inside the vehicle. Starkey’s person was searched and officers found a hatchet, brass knuckles and a homemade weapon called a blackjack. Starkey’s vehicle was subsequently searched and officers found three additional hatchets, a CO2 pistol resembling a semi-automatic pistol, two folding knives, a shotgun with a barrel that was less than eighteen inches and a rifle in the trunk. Starkey was prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated assault.
This case was a result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and Meridian police department. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Beaumont Federal Inmate Charged in Prison EscapeRead the Press Release
BEAUMONT, Texas – A 38-year-old federal inmate has been indicted for escaping from a Federal Correctional Complex in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Ortega, of McKinney, Texas, was indicted by a federal grand jury on Apr. 6, 2016, and charged with escaping from federal custody. Ortega made an initial appearance and was arraigned before U.S. Magistrate Judge Zachary J. Hawthorn on May 3, 2016.
According to the indictment and information presented to the grand jury, Ortega was convicted of drug trafficking violations and was serving his sentence at the Federal Prison Camp located at the Federal Correctional Complex in Beaumont, Texas. On Feb. 27, 2016, Ortega is alleged to have escaped from the facility. On Feb. 29, 2016, Ortega voluntarily surrendered to authorities at the Federal Correctional Institution in Seagoville, Texas.
If convicted, Ortega faces up to an additional five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Prisons and the U.S. Marshals Service and prosecuted by Special Assistant U.S. Attorney Christina V. Hauck.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Batavia Man Sentenced for Methamphetamine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Gordon L. Montgomery, 57, of Batavia, NY, who was convicted of conspiracy to distribute, and possess with intent to distribute, 50 grams or more of methamphetamine, was sentenced to 60 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that the charges resulted from a joint federal, state and local investigation, which revealed that Montgomery was responsible for traveling to California on two occasions in 2007 and obtaining quantities of methamphetamine from Richard W. Mar, the President of the Hell’s Angels, Monterey (CA) Charter, and transporting the methamphetamine back to the Western District of New York, where it was distributed to others. The defendant made the trips to California on behalf of two other co-conspirators, James H. McAuley, Jr., then the Vice President of the Hell’s Angels, Rochester Charter, and McAuley’s wife, Donna Boon. McAuley and Boon sent Montgomery on both trips, paying for his airfare and paying him a $1,000 fee for each trip. The defendant obtained and transported between 500 grams and 1.5 kilograms of methamphetamine on the two trips.
This case is part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Seven defendants were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. All of the defendants – Mar; McAuley, of Oakfield, NY; Boon, of Oakfield, NY; Jeffrey A. Tyler, of Rochester; Richard E. Riedman, of Webster, NY; and Paul Griffin, of Blasdell, NY – have been convicted of drug trafficking offenses based on their roles in the methamphetamine conspiracy. Judge Siragusa sentenced Griffin to probation and Riedman to 37 months in prison, and the remaining defendants are awaiting sentencing.
Rochester Hell's Angels member Robert W. Moran, Jr. a/k/a Bugsy, of Rochester, was convicted of conspiracy to commit assault with a dangerous weapon in aid of racketeering activity. Gina Tata, of Rochester, was convicted of being an accessory after the fact to the conspiracy to commit assault with a dangerous weapon in aid of racketeering activity. Another defendant, Timothy M. Stone, of Gates, NY, was convicted of being an accessory after the fact to the assault, and was sentenced to 12 months in prison.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam Cohen, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Craig Hanesworth, the City of Batavia Police Department, under the direction of Chief Sean Shawn Heubusch, and the Village of LeRoy Police Department.
Bassett Man Pleads Guilty to RobberyRead the Press Release
DANVILLE, VIRGINIA – A Bassett, Virginia man, who committed armed robbery during an intended drug deal, pled guilty yesterday in federal court, United States Attorney John P. Fishwick Jr. announced.
Christopher L. Bowers, 23, of Bassett, Virginia, pled guilty yesterday in the United States District Court for the Western District of Virginia to one count of robbery, as a principal and aider and abettor. At sentencing, he faces a maximum possible penalty of up to 20 years in prison.
“We are thankful this violent robbery didn’t end in a much more tragic way,” United States Attorney John P. Fishwick Jr. said today. “So often, the mixture of drugs and guns has deadly consequences. We will continue to work with our partners in law enforcement to slow the tide of violence and drug trafficking in our communities.”
According to evidence presented at yesterday’s hearing, in the early morning hours of December 10-11 2014, Bowers and an associate, Christopher Strokes, went to a home in Henry County for the purpose of obtaining pills. When Stokes and Bowers arrived, a disagreement arose over the price of the drugs. At that time, Bowers brandished a firearm and threatened one of the victims. Stokes, who was not initially armed, seized a Smith and Wesson .40 caliber pistol belonging to one of the home’s residents, confronted a second victim, demanded money, and then fired the pistol into the wall. Bowers and Stokes then fled with stolen pills, the Smith & Wesson pistol, and approximately $400 in cash.
The investigation of the case was conducted by Department of Homeland Security. Assistant United States Attorney Anthony P. Giorno and Special Assistant United States Attorney Kari K. Munro prosecuted the case for the United States.
Baltimore Woman Pleads Guilty to Obstructing a Federal InvestigationRead the Press Release
Baltimore, Maryland – Tyesha Towanda Roberts, age 37, of Baltimore, Maryland pleaded guilty today to attempting to obstruct a federal investigation.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Maryland State Fire Marshal Brian Geraci; and Anne Arundel County Fire Department Chief Allan C. Graves.
According to Roberts’ plea agreement, in September 2015, a co-conspirator told an individual that Roberts would be willing to offer false testimony concerning the whereabouts of that individual in a federal investigation involving insurance fraud and a series of arsons. On October 27, 2015, a confidential source met with the co-conspirator and Roberts to confirm that Roberts was willing to offer false testimony. After discussing the proposed false testimony, Roberts agreed that she was willing to lie and took a $1,000 down payment from the confidential source.
At a meeting on November 6, 2015, Roberts and her co-conspirator solicited $10,000 from the confidential source and an undercover officer, in order to commit the murder of a witness in the case. Roberts said that she had a person who would carry out the murder. The undercover officer offered a $2,000 down payment with the remaining $8,000 to be paid upon the completion of the murder. Roberts and the co-conspirator agreed to accept that payment. Roberts and the co-conspirator did not receive money at that time, but agreed to wait for the undercover officer to contact them to set up a meeting with them and the shooter. A few days later the co-conspirator told the undercover officer that he didn’t trust the person Roberts had found to commit the murder and that they (the co-conspirator and the undercover officer) should commit the murder themselves.
Roberts faces a maximum sentence of 20 years in prison. U.S. District Judge George L. Russell has scheduled sentencing for August 26, 2016 at 2:15 p.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Anne Arundel County Fire Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Zachary A. Myers, who are prosecuting the case.
Augusta County Woman Pleads Guilty to Failing to Register as Sex OffenderRead the Press Release
ROANOKE, VIRGINIA – A previous convicted sex offender, who due to her previous criminal conduct was required to register as a sex offender, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke for failing to maintain her sex offender registration, United States Attorney John P. Fishwick Jr. announced.
Kimberly Ann Avery, 53, of Augusta County, pled guilty today in District Court to one count of failing to register as a previously convicted sex offender.
“Keeping and maintaining an accurate and up-to-date sex offender registry is an important tool in keeping our communities informed and safe,” United States Attorney John P. Fishwick Jr. said today. “When individuals fail to comply with the Sex Offender Registration and Notification Act, they will be held accountable.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Charlene R. Day, Avery was aware that she was required to register as a sex offender under SORNA and had, on two separate occasions in 2011 and 2015, completed Virginia Sex Offender and Crimes Against Minors Registration Forms.
However, on September 29, 2015, a probation officer prepared a major violation report for Avery, citing multiple probation violations, including having contact with minor children, using illegal drugs and absconding from state probation. The report further stated that Avery failed to report for a scheduled appointment and that her whereabouts were unknown.
On November 4, 2015, investigators with the United States Marshals Service in the Southern District of Texas located Avery and conducted and interview with Avery, during which she stated she was tired of being labeled a monster and that she absconded because she wanted to live a normal life.
On November 5, 2015, investigators interviewed GT, a friend of Avery. GT admitted to knowing Avery for 30 years and further admitted that he knew Avery was a convicted sex offender and said Avery had picked him up from Connecticut, that they had traveled to California and then to Texas. GT stated that Avery did not register as a sex offender because she knew she would be arrested if she did. GT also stated that Avery wanted to abscond because she was not the monster she was being made out to be.
The investigation of the case was conducted by the United States Marshals Service and the Virginia State Police. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Ramon Phillip Baca, 44, of Albuquerque, N.M., pleaded guilty yesterday in federal court to a heroin trafficking charge. Under the terms of his plea agreement, Baca will be sentenced to 57 months in prison followed by a term of supervised release to be determined by the court.
Baca was indicted on Dec. 1, 2015, and charged with distributing heroin on May 20, 2015 and June 16, 2015, in Bernalillo County, N.M.
During yesterday’s proceedings, Baca pled guilty to one count of heroin distribution and admitted that on June 16, 2015, he met with an individual who, unbeknownst to him was working with law enforcement, with the intention of selling him approximately 47.231 grams of heroin in exchange for $1,300. Baca remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Shana B. Long is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
16 Alleged Gangster Disciples Members Indicted on Federal Racketeering ChargesRead the Press Release
Memphis, TN – Sixteen alleged members of the Gangster Disciples, a nationwide violent criminal organization, have been indicted for allegedly conspiring to participate in a racketeering enterprise. Dozens of alleged Gangster Disciples members have also been arrested in Atlanta, Georgia, on a separate indictment. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee; and Gerard J. Cocuzzo, Acting Special Agent in Charge of the FBI’s Memphis Field Office, announced the indictment today.
All 16 defendants were taken into custody today. Federal, state and local law enforcement agencies participated in the early morning round-up.
"As the indictment alleges, the Gangster Disciples flooded communities throughout the southeast and beyond with large amounts of drugs and ruthlessly used fear, intimidation, and even murder to promote and protect their nationwide criminal enterprise," said U.S. Attorney Stanton. "We will continue to work with our law enforcement partners to eliminate the terror gang members inflict upon our communities. And we will exhaust every available resource, including the federal RICO statute, to bring them to justice. Dismantling violent gangs at the highest levels remains a priority for the U.S. Attorney’s Office."
According to the indictment, the defendants named in the RICO conspiracy and conspiracy to distribute charges committed attempted murders; robberies; assaults; distribution of large quantities of heroin; cocaine and marijuana; firearms trafficking; kidnappings; intimidation of witnesses and victims; extortion; obstruction of justice; and other offenses in furtherance of the Gangster Disciples enterprise and to raise funds for the gang.
The Gangster Disciples were organized into different positions, including board members and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers, and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group. To enforce discipline among Gangster Disciples and adherence to the criminal organization’s rules and structure, members and associates were routinely fined, beaten and even murdered for failing to follow the gang’s rules.
According to the indictment, the Gangster Disciples has a highly-organized structure with a nationwide reach. In addition to Tennessee, the gang reportedly operates in more than 35 states.
"The coordinated arrests of Gangster Disciples around the country today should send a message to all those intent on victimizing our communities through acts of violence and racketeering," said Acting Special Agent in Charge Cocuzzo. "The FBI is constantly working in Memphis, in Tennessee, around the country, and globally, along with our federal, state, and local partners, to mitigate the threat of violent gangs. We will relentlessly pursue those who terrorize our neighborhoods, whether in urban or rural areas; and today's law enforcement actions demonstrate our commitment to this fight."
The following defendants have been indicted on RICO conspiracy charges in West Tennessee. They have also been charged with conspiracy to distribute and possess with the intent to distribute five kilos of cocaine; 280 grams of cocaine base; and 1,000 kilos of marijuana:
• Byron Montrail Purdy, a/k/a "Lil B" or "Ghetto," 37, of Jackson, Tennessee. Purdy held the rank of Governor of Tennessee;
• Derrick Kennedy Crumpton, a/k/a "38," 32, of Memphis, Tennessee. Crumpton held the rank of Assistant Governor of Tennessee;
• Demarcus Deon Crawford a/k/a "Trip," 32, of Jackson, Tennessee. Crawford held the rank of Chief of Security of Tennessee;
• Henry Curtis Cooper, a/k/a "Big Hen," 36, of Memphis, Tennessee. Cooper held the rank of Chief Enforcer for Tennessee;
• Rico Terrell Hassis, a/k/a "Big Brim," 43, of Memphis, Tennessee. Hassis held the rank of Enforcer of Memphis;
• Shamar Anthony James, a/k/a "Lionheart," 37, of Memphis, Tennessee. James held the rank of Governor of a region in Memphis;
• Demario Demont Sprouse, a/k/a "Taco," 35, of Memphis, Tennessee. Sprouse held the rank of Chief of Security of a region in Memphis;
• Robert Elliott Jones, a/k/a "Lil Rob" or "Mac Rob," 36, of Memphis, Tennessee. Jones held the rank of Governor of a region in Memphis;
• Denton Suggs, a/k/a "Denny Mo" or "Diddy Mo,"40, of Memphis, Tennessee. Suggs held the rank of Chief of Security in a section of Memphis;
• Santiago Megale Shaw, a/k/a "Mac-T," 23, of Jackson, Tennessee. Shaw was a member of the Security Team or Blackout Squad in Jackson;
• Tarius Montez Taylor, a/k/a "T," 26, of Jackson, Tennessee. Taylor was a member of the Security Team or Blackout Squad in Jackson;
• Tommy Earl Champion, Jr., a/k/a "Duct Tape," 27, of Jackson, Tennessee. Champion held the rank of Chief of Security of Jackson;
• Cory DeWayne Bowers, a/k/a "Bear Wayne," 32, of Jackson, was associated with the Gangster Disciples and acted as a member of the Security Team in Jackson;
• Gerald Eugene Hampton, a/k/a "G30," 30, of Jackson, Tennessee. Hampton was a member of the Security Team or Blackout Squad in Jackson;
• Daniel Lee Cole, a/k/a "D-Money," 37, of Jackson, Tennessee. Cole acted as Assistant Governor and Assistant Education Coordinator for the Gangster Disciples in Jackson; and
• Tommy Lee Wilkins (Holloway), a/k/a "Tommy Gunz," 28, of Memphis, Tennessee. Wilkins was a member of the Security Team in Memphis.
The RICO conspiracy charge in this case carries a maximum sentence of life in prison and a fine up to $250,000. The conspiracy to distribute and possess with the intent to distribute charge carries a minimum sentence of 10 years and a maximum of life imprisonment, and a fine up to $10 million.
Five of the defendants — Crawford, Shaw, Champion, Taylor, and Bowers — are charged with seven counts of attempted murder in aid of racketeering. They are also charged with seven counts of using a firearm during the commission of those offenses. Those crimes carry a maximum sentence of 10 years imprisonment for each offense, and a fine up to $250,000.
This case is being investigated by the Multi-Agency Gang Unit, which is comprised of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Memphis Police Department; and the Shelby County Sheriff’s Office. Other agencies contributing to the investigation include the Drug Enforcement Administration; Tennessee Bureau of Investigation (TBI); the 28th District West Tennessee Drug Task Force; the 25th Judicial District Attorney General’s Office; the Jackson Police Department Gang Enforcement Team; the police departments of Bartlett, Tennessee; Germantown, Tennessee; Columbia, Tennessee; and West Memphis, Arkansas; and the Sheriff’s Offices for Tipton, Desoto, Madison, and Fayette Counties.
This case is being prosecuted by Assistant U.S. Attorneys Jerry Kitchen, Samuel Stringfellow, Beth Boswell, and Michelle Parks. David N. Karpel, trial attorney for the U.S. Department of Justice, Criminal Division’s Organized Crime and Gang Section, is also assisting with this case’s prosecution.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
3 May 2016
Virginia man pleads guilty to defrauding the Greenbrier through cancer schemeRead the Press Release
CHARLESTON, W.Va. – A Virginia man pleaded guilty today to defrauding The Greenbrier, announced Acting United States Attorney Carol Casto. Carmelo “Carmine” Carrozza, 57, of Charlottesville, Virginia, entered his guilty plea to wire fraud.
In the spring of 2013, Carrozza began working at the resort as the Director of Fine Dining. Carrozza admitted that in June 2013, he told senior management that he had cancer. However, as he admitted, Carrozza did not have cancer. Carrozza then left the resort, purportedly to receive cancer treatment, and kept collecting his salary. He continued to receive a salary during his purported cancer diagnosis and treatments from June through mid-December 2013. During this period, Carrozza informed employees of the resort about the supposed cancer prognosis and treatments.
Carrozza admitted that instead of spending time getting cancer treatment, he obtained a position with the University of Virginia Darden School Foundation beginning in August 2013. Carrozza also admitted that he fraudulently received over $48,000 from the resort during the course of his cancer scheme, and he has agreed to pay restitution to The Greenbrier.
Carrozza faces up to 20 years in federal prison when he is sentenced on August 17, 2016.
The investigation was conducted by the FBI. Assistant United States Attorney Meredith George Thomas is in charge the prosecution. The defendant appeared before United States District Judge Irene C. Berger.
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Three sentenced for drug traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Three individuals were sentenced in federal court in Elkins today for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.Daniel Lee Canter, 31, of Volga, West Virginia, was discovered in possession of methamphetamine in November 2014 in Lewis County, West Virginia. Following an investigation by the Lewis County Sheriff’s Department and the Drug Enforcement Administration, Canter pled guilty in December 2015 to one count of “Possession with Intent to Distribute Methamphetamine.” He was sentenced today to 188 months in prison.
David Wayne Doyle, 43, of Bartow, West Virginia, was discovered in possession of material commonly used to manufacture methamphetamine in Randolph County, West Virginia. Those materials included coffee filters, a mason jar, sandwich bags, and cold medicine containing pseudoephedrine. Following an investigation by the Mountain Region Drug and Violent Crime Task Force, the United States Forest Service, the Pocahontas County Sheriff’s Department, and the West Virginia State Police, Doyle pled guilty in December 2015 to one count of “Possession of Material Used in the Manufacture of Methamphetamine – Aiding and Abetting.” He was sentenced today to 63 months in prison.
Mary Kimble, 34, of Cabins, West Virginia, sold morphine near Petersburg City Park, a playground in Grant County, West Virginia. Following an investigation by the Potomac Highlands Drug and Violent Crime Task Force, Kimble pled guilty in April 2016 to one count of “Distribution of Morphine within 1,000 feet of a Protected Location – Aiding and Abetting.” She was sentenced today to 24 months in prison.
U.S. District Judge John Preston Bailey presided.
Tenth Defendant Pleads Guilty in Methamphetamine ConspiracyRead the Press Release
ABINGDON, VIRGINIA – Another member of a conspiracy that trafficked large quantities of methamphetamine from Atlanta to Southwest Virginia pled guilty today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Robert Edward Bowman, 42, pled guilty today to one count of conspiring to possess with the intent to distribute methamphetamine.
“We are seeing large amounts of methamphetamine brought into Southwest Virginia from areas outside of the Commonwealth and we must continue to work to put a stop to it,” United States Attorney John P. Fishwick Jr. said today. “We know other crimes follow methamphetamine addiction, property crime, domestic abuse, child neglect, things that devastate communities. For those reasons alone we must get a handle on this growing problem.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Bowman was part of a methamphetamine conspiracy that transported and distributed multiple pounds of crystal methamphetamine between Atlanta, Northeast Tennessee and Southwest Virginia.
To date, nine other individuals have pled guilty to being part of the conspiracy: Brandin Hyde, Dawn Rossalyn Vincente, Summer Deborah Booher, Dakota Wayne Barker, Carrie Taylor, Jeffrey Bruce Bartley, Stacey Lee Doane, Melissa Mendora Harless and Connie Diane Strouth have each pled guilty to one count of conspiring to possess with the intent to distribute methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Abingdon Police Department and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Statement of U.S. Attorney Preet Bharara on Sentencing of Former New York State Assembly Speaker Sheldon SilverRead the Press Release
“Today’s stiff sentence is a just and fitting end to Sheldon Silver’s long career of corruption.”
Southern Indiana woman sentenced in fraud schemeRead the Press Release
New Albany –United States Attorney Josh J. Minkler announced today that a former Corydon, Indiana, woman was sentenced in federal court by U. S. District Judge Tanya Walton Pratt sentenced to 75 months (over six years) imprisonment. Deirdre Martin, 45, was convicted of one count of bank fraud, two counts of aggravated identity theft and two counts of access device fraud. This matter was investigated by the United States Secret Service and the Indiana State Police.
Prior to her sentencing, Martin admitted that she devised a scheme in which she committed bank fraud, aggravated identity theft and used unauthorized access devices to obtain goods, merchandise and services for her personal benefit in an amount over $200,000.
According to the plea agreement filed with the Court, Martin obtained the routing number and account number for a First Savings Bank personal checking account without the knowledge or consent of the owner of the account. Martin also obtained a Capital One credit card account using the identifying information of another person without consent and made herself an authorized user of the credit card account.
Additionally, Martin obtained Abercrombie and Fitch and Victoria’s Secret retail merchant credit accounts administered by Comenity Bank using the identifying information of another person without consent and made herself an authorized user for the credit accounts. Martin used the Capital One and Comenity Bank credit accounts to pay for numerous personal expenditures benefiting her and her associates. Martin used the First Savings Bank routing number and account number to direct electronic funds transfers from the First Savings Bank checking account she took over without authorization to make payments to the Capital One and Comenity Bank credit accounts she opened and for other personal expenditures for herself and her associates including utility services.
Martin directed electronic funds transfers from the First Savings Bank checking account in amounts low enough to avoid the attention of the account owner and First Savings Bank, generally less than $1,000, and to cause the transactions to appear to First Savings Bank to have been made in the due course of business. As a result of the scheme, Martin caused the transfer of approximately $202,000 from the First Savings Bank checking account she took control of to pay for personal expenditures benefitting her and her associates.
According to Assistant U.S. Attorney Todd Shellenbarger, who prosecuted the case for the government, Martin also was sentenced to 5 years of supervised release following her release from imprisonment. During the period of supervised release, Martin must submit to drug testing and must pay restitution to the victims of the crimes including $156,701 to the victim of the bank fraud.
Rutland Resident Sentenced to a Year and a Day in Prison for Possession of Child PornographyRead the Press Release
Eric S. Miller, United States Attorney for the District of Vermont, stated that Kenneth Beane, 27, of Rutland, Vermont, was sentenced today by U.S. District Court Judge Geoffrey W. Crawford, to a year and a day in prison for the possession of over 7500 images and videos of child pornography. Beane was also sentenced to five years of supervised release after the completion of his prison term.
According to Court records, as part of an investigation into peer-to-peer file sharing and internet-facilitated child exploitation, agents from Homeland Security Investigations identified Beane as associated with the receipt and distribution of child pornography. On May 20, 2015, agents executed a search warrant at Beane’s residence in Rutland and seized a series of electronics suitable for data storage, including laptop computers, cellular phones, thumb drives, and other storage devices. Imaging of one of the laptops revealed over 7500 videos and images of violent sexual abuse of children.
On June 15, 2015, Beane was indicted by a federal grand jury on a one-count indictment charging him with Possession of Child Pornography, including the possession of at least one visual depiction that involved a prepubescent minor who had not attained twelve years of age. On June 16, 2015, the defendant appeared before United States Magistrate Judge John M. Conroy who released the defendant on conditions pending trial. Beane pled guilty to the indictment on December 3, 2015, before Judge Crawford, who continued Beane’s release. Upon sentencing today, Beane was ordered to surrender to the Bureau of Prisons on June 14, 2016.
This case was investigated by Homeland Security Investigations, the investigative arm of the Department of Homeland Security. The United States Attorney, Eric S. Miller, commends the agency for its work in this critical area. The case was prosecuted by Assistant United States Attorney Abigail Averbach. Beane was represented by Elizabeth Quinn of the Office of the Federal Public Defender.
Riverside Man Sentenced to Decade in Federal Prison for Third Conviction of Possessing Child PornographyRead the Press Release
LOS ANGELES – A Riverside man has been sentenced to 10 years in federal prison for possessing about 100 images depicting child pornography, including sexually explicit pictures of pre-pubescent girls under the age of 12.
James Gregory O’Neill, 58, was sentenced Monday afternoon by United States District Judge R. Gary Klausner.
O’Neill pleaded guilty in January to possessing child pornography on his mobile phone in the spring of 2015. When authorities discovered the pictures of O’Neill’s phone, he was on parole after being convicted in Riverside Superior Court of possessing matter depicting a minor in a sexual act, a crime that led to a two-year sentence. O’Neill had also been convicted in federal court in 2003 of distributing child pornography, a conviction that brought a 40-month prison sentence.
“Mr. O’Neill has now been convicted three separate times of serious felony offenses related to child pornography,” said United States Attorney Eileen M. Decker. “Even after his prior convictions, he was not deterred from continuing to engage in crimes that victimize children. Because of his repeated failure to behave lawfully, Mr. O’Neill earned the decade-long sentence imposed by the Court.”
The case against O’Neill was investigated by the Riverside Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
“Every time a sexually explicit image or video of a minor is downloaded and viewed, the child who’s shown is victimized again,” said Joseph Macias, special agent in charge of HSI Los Angeles. “That’s why HSI, in close collaboration with its law enforcement partners and prosecutors, is using every resource and tool at its disposal not only to target those involved in online child sexual exploitation, but also to identify and rescue the children who’ve fallen prey to these predators.”
O’Neill is one of a half-dozen men from the Inland Empire who currently face federal charges related to child pornography.
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Jeremy Matthew Meyerett, 41, of San Bernardino, has agreed to plead guilty to production of child pornography in a case that carries a 15-year mandatory minimum prison term. During an undercover investigation by the Queensland (Australia) Police Service, Meyerett discussed sexually molesting a 5-year-old girl, and a subsequent search of an online account by federal law enforcement yielded child pornography depicting the young victim. Meyerett is scheduled to enter his guilty plea on June 13, 2016 before United States District Judge Virginia A. Phillips. This investigation was conducted by HSI and the Riverside County Sheriff’s Department.
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Andrew Harrison Fowler, 26, of Perris, a convicted sex offender who was convicted of having sex with minors in San Diego Superior Court, pleaded guilty on April 18 to possession of child pornography, with some of the images depicting victims younger than 10. Fowler came to the attention of law enforcement after his employer discovered that he was distributing and possessing child pornography while using a computer at his job in Corona. Fowler is scheduled to be sentenced by Judge Phillips on June 27, at which time he will face a mandatory minimum sentence of 10 years in federal prison and maximum possible sentence of 20 years. Fowler was on parole in the San Diego case when he committed the offense in the federal case. This case was investigated by the Riverside County District Attorney’s Office Sexual Assault and Felony Enforcement/Internet Crimes Against Children Unit, which includes special agents with HSI.
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Anthony Michael Scotti, 22, of Murrieta, pleaded guilty on April 4 to possession of child pornography. Scotti, who was previously convicted in Riverside Superior court of distributing lewd material to a minor, admitted that he had images on an iPod that was seized by law enforcement last August, and that he used the KIK messaging app to distribute images of children engaged in sex acts with adults. In a plea agreement, Scotti also admitted that he used text messages to convince a 15-year-old girl in another state to take sexually explicit pictures and send them to him. United States District Judge Philip S. Gutierrez is scheduled to sentence Scotti on September 12, at which time the defendant faces a mandatory minimum sentence of 10 years in federal prison, and prosecutors have said they will recommend a sentence of 14 years. This case was investigated by HSI.
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Angelo Harper Jr., 21, of Moreno Valley, is scheduled to go on trial on July 19 on charges of advertising, distributing and possessing child pornography. A grand jury indictment in this case accused Harper of distributing child pornography that includes a six-minute video depicting a man with a pre-pubescent boy. If he is convicted, Harper would face a statutory maximum sentence of 70 years in federal prison. This case was investigated by HSI and the Riverside Sexual Assault Felony Enforcement Task Force.
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Nathan Charles Longino Barba, 21, of Rancho Cucamonga, was indicted on April 13 on charges of receiving and possessing child pornography. Barba has pleaded not guilty and is scheduled to go on trial on June 14. The indictment alleges that Barba received video files depicting child pornography over the Internet and that he possessed images that depicted a child under the age of 12. If he is convicted, Barba would face a statutory maximum sentence of 40 years in federal prison. This case was investigated by FBI.
“Child pornography offenses must be punished,” said United States Attorney Decker. “These crimes create further demand in child pornography market, which by its nature is based on the exploitation and abuse of children. By deterring demand, we are protecting against future abuse.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Puerto Rico Man Pleads Guilty to Alien SmugglingRead the Press Release
St. Thomas, USVI –On Tuesday, May 3, 2016, Angel De Jesus Marrero, 31, of Puerto Rico, pleaded guilty in District Court on St. Thomas to encouraging and inducing aliens to illegally enter the United States, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, on December 22, 2015, Marrero was solicited by his co-defendant, Rodriguez Ramirez, to assist in the passage of five illegal Brazilian nationals through the St. Thomas airport by checking them in at the airline ticket kiosk. Afterward, he was to ensure that the illegal aliens made it to the appropriate gate to depart St. Thomas for New York. Federal agents, however, thwarted the plan before anyone boarded the aircraft and apprehended the defendants along with the illegal aliens. Marrero’s sentencing date has been set for September 1, 2016. Rodriguez Ramirez previously pleaded guilty to bribing a Customs officer and is awaiting sentencing on June 16, 2016.
Marrero faces a maximum sentence of 10 years in prison and a $250,000 fine.
The case was investigated by Custom and Border Protection Office of Internal Affairs and the U.S. Immigration and Customs Enforcement Office of Professional Responsibility. The case is being prosecuted by Assistant U.S. Attorney Sigrid Tejo-Sprotte.
Previously Convicted Felon Sentenced for Gun PossessionRead the Press Release
DAYTON – David Pate, 28, of Dayton, was sentenced in U.S. District Court to 90 months in prison for possessing a firearm after having been convicted of a felony.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Dayton Police Chief Richard Biehl, Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, who are all members of the Community Initiative to Reduce Gun Violence, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, on November 2, 2015, Dayton Police started to follow Pate as he operated a vehicle. Pate sped away and crashed into a fence before fleeing on foot. He was ultimately arrested and officers found a semi-automatic pistol under the driver’s seat of his vehicle. Pate had been convicted of felony offenses in 2009 and 2011, including trafficking in heroin and felonious assault.
He pleaded guilty on December 29, 2015 to a Bill of Information charging him with one count of possession of a firearm by a convicted felon.
Acting U.S. Attorney Glassman commended the cooperative investigation by those involved in the Community Initiative to Reduce Gun Violence, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case.
Previously Convicted Child Sex Offender, Shane Scott, Sentenced to 33 Years After Using Prison Mail System to Coerce and Entice A Mentally Disabled ChildRead the Press Release
GRAND RAPIDS, MICHIGAN – Shane Scott, age 41, of Coldwater, Michigan, received a sentence of 33 years in federal prison for attempting to coerce or entice a mentally disabled 17-year-old into sex, U.S. Attorney Patrick Miles announced today.
Scott committed the offense while incarcerated at the Bellamy Creek Correctional Facility serving a sentence for criminal sexual conduct involving a 12-year-old girl in 2000. Scott committed the 2000 criminal sexual conduct offense just three months after being released from prison on a previous child sexual abuse conviction in Alabama. Between August 2014 and January 2015, he used the prison mail system to write countless times to a woman whose daughter he wanted to have sex with as soon as he was released. The 17-year-old daughter has severe mental disabilities, and Scott admitted that he knew that she had the mental capacity of someone well under age 10 and that she would not understand what sex was. Scott was scheduled for release from Bellamy Creek Correctional Facility on February 14, 2015, but authorities arrested him on the federal charge of attempted coercion or enticement just prior to his release. Scott pled guilty to the charge in January 2016.
Scott’s efforts to set up a sexual encounter with the child were persistent and detailed. He sent numerous letters directing the girl’s mother to make arrangements so he could sexually molest the child in a car and at his workplace. He specifically requested that the mother tattoo the girl, send him sexually explicit pictures of the girl, and sexually molest the child for him. Scott stated that the mother was the one who initially proposed the idea of Scott having sex with the daughter, but the mother backed out and Scott spent five months trying to persuade her to allow him to do it, thereby attempting to coerce or entice the child into sex with him through the mother as the intermediary. Scott admitted to authorities that he would have gone through with having sex with the child if law enforcement had not intervened. The child’s mother was convicted in state court for this and a related offense and is now serving up to seven years in prison.
In delivering the 33-year sentence, U.S. District Judge Paul L. Maloney described this offense as "shocking" and "virtually incomprehensible" in its gravity. Judge Maloney described Scott as "a predator" who is "virtually certain to reoffend" without a lengthy term of incarceration to incapacitate him. He ordered that the 33-year prison term – which was above the recommended guideline range – be followed by 20 years of supervised release, which will subject Scott to intensive federal monitoring and supervision.2
"If not for careful screening and monitoring of inmate mail by the Michigan Department of Corrections staff at the Bellamy Creek Correctional Facility, this predator would have carried out his perverse plan and victimized a child who never could have reported it," stated U.S. Attorney Miles. "This case represents the priority that West Michigan law enforcement agencies place on collaborating to protect the most vulnerable among us."
"Mr. Scott’s propensity, ambition, and planning to offend again once he was released is disturbing, and it is gratifying to see justice served against someone who was plotting to choose among the most vulnerable of our society to victimize so egregiously," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "It is our law enforcement partners who got us this result. From the Michigan Dept. of Corrections, to the Social Security Administration, the Ionia County Sheriff’s Office, and the Michigan State Police: their partnership with us kept a predator off the streets, and a vulnerable victim safe."
This case resulted from a joint investigation by the FBI, Michigan State Police, Michigan Department of Corrections, Social Security Administration, and Ionia County Sheriff’s Office working under the FBI’s West Michigan Based Child Exploitation Task Force (WEBCHEX). Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the federal case as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Postal Employee Indicted on Charged of Embezzlementand TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester, NY has returned a two-count indictment charging Jennifer Passeck of embezzling and converting to her own use proceeds and property of the United States Postal Service. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Bradley E. Tyler stated that, according to the indictment, the defendant she was a Relief Postmaster in the Sodus Point, NY post office between March 2013 and March 2015. During that time, Passeck is accused of stealing stamps, money orders and post office box rental payments totaling $19,504.
The indictment is the culmination of an investigation on the part of Inspectors of the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Philadelphia Man Sentenced for Armed Robbery of West Bloomfield Tappers JewelryRead the Press Release
A Philadelphia man was sentenced to 33 years in prison today for his involvement in the violent armed robbery of Tapper’s Diamonds and Fine Jewelry in West Bloomfield and an attempted armed robbery of Medawar Jewelers in Grand Rapids in April 2014, United States Attorney Barbara L. McQuade announced.
McQuade was jointed in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Chief Michael Patton, West Bloomfield Police Department and Sheriff Lawrence A. Stelma, Kent County Sheriff’s Department.
Nathaniel Pembrook, 43, was sentenced before United States District Judge Laurie J. Michelson in Detroit, Michigan.
Pembrook, along with his co-conspirators David Briley, Shaheed Calhoun, and Orlando Johnson, were convicted of a variety of charges, including conspiracy to interfere with interstate commerce by force, interference with interstate commerce by force, use and carry of a firearm during and in relation to a crime of violence, and being felons in possession of firearms after a four week-long trial in November – December 2015. The evidence produced at trial showed that all four men lived in Philadelphia, Pennsylvania and traveled to Michigan on April 21-22, 2014 to commit armed robberies of jewelry stores, particularly targeting the Rolex distributors, as part of a six-person robbery crew.
This armed robbery crew initially attempted to steal Rolex watches and other valuables from Medawar Jewelers, located at 4518 Plainfield Avenue in Grand Rapids, at approximately 12:28 pm on April 22, 2014. During the course of that attempted robbery, one robber used a hammer to smash the Rolex watch display while three other robbers, one armed with a gun, rushed the back area of the store looking for other valuables. The store owners, who are registered concealed pistol owners, shot the armed robber and all the robbers fled without any valuables. About five hours later, three men, dressed in identical clothes as the robbers in Grand Rapids earlier that day, entered Tapper’s Diamonds and Fine Jewelry, located at 6337 Orchard Lake Road in West Bloomfield, and held employees and customers at gunpoint as they stole approximately $1.3 million worth of Rolex watches. The men then fled the store without being apprehended.
The Federal Bureau of Investigation, Kent County Sheriff Department, and West Bloomfield Police Department coordinated their investigative efforts and began to piece together various pieces of evidence to identify the armed robbers. Nathaniel Pembrook’s blood, and thus, DNA were found at the Medawar Jewelers location. Investigators discovered that Pembrook checked himself into Pennsylvania Prysberatian Hospital in the early morning hours of April 23, 2014 complaining of a gunshot wound. The hospital removed the bullet from Pembrook’s arm and Michigan State Police laboratory personnel were able to match the fired bullet to the Medawars owner’s firearm. Additionally, investigators tracked down video and cell phone information that helped to place all of these men from Philadelphia in Michigan and more specifically the robbery locations during the times of the robbery.
Law enforcement is still attempting to identify the final two persons associated with this robbery crew. If anyone has any information about those person’s identities, they are asked to contact the Federal Bureau of Investigation.
Briley, Calhoun, and Johnson are all scheduled to be sentenced next Friday, May 13, 2016 in the federal courthouse in Detroit.
"Armed robberies create a level of fear and risk to life that are unacceptable," McQuade said. "We are grateful for the collaboration of law enforcement agencies across state lines to build this investigation and bring these offenders to justice."
"The lengthy sentence imposed today, and previous convictions, are the result of hundreds of hours of work and dedication of our team of investigators and prosecutors." said, David P. Gelios, Special Agent in Charge, FBI Detroit Division. "The convictions and lengthy sentence should serve as a reminder to anyone who would travel to Michigan with the intent to commit a crime, particularly violent crimes, that the FBI, along with its federal, state and local partners, will locate them and bring them to justice."
The case was prosecuted by Assistant United States Attorneys Daniel Lemisch and Christopher Graveline
Pensacola Man Pleads Guilty to Multiple Federal Firearm OffensesRead the Press Release
PENSACOLA, FLORIDA – Deangelo A. Rome, 25, of Pensacola, pled guilty today to unlawfully possessing a firearm and ammunition as a convicted felon. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
During his guilty plea, Rome admitted that, in February 2015, a law enforcement officer discovered a running vehicle with Rome unresponsive in the driver’s seat and located a loaded handgun in view under Rome’s seat.
Later, in December 2015, law enforcement responded to a “shots fired” disturbance call. A shooting victim was located, and the residence had bullet holes through a sliding glass door. Multiple shell casings and a loaded magazine were found on the scene. A fingerprint on the loaded magazine matched that of Rome.
A few days later, law enforcement responded to a call of armed individuals, who, after fleeing, were tracked to a residence with a vehicle in the driveway. A deputy saw an assault rifle in the vehicle, and ammunition was also found on the premises. During a search of the premises, Rome was located hiding under a bed. The rifle inside the vehicle had both a palm print and DNA evidence belonging to Rome, and Rome’s fingerprint was also located on a separate box of ammunition.
For each of the three firearm charges, Rome faces a maximum of 10 years in prison. The sentencing hearing is scheduled for July 18, 2016, at 2:00 p.m. at the United States Courthouse in Pensacola.
The case resulted from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Escambia County Sheriff’s Office, the Pensacola Police Department, and the ATF Gun Crime Response Team. Assistant United States Attorney David L. Goldberg is prosecuting the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Owner of California Company That Offered Mortgage Assistance Pleads Guilty to False Advertising ChargesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN VESCERA, 60, of Dana Point, Calif., waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to false advertising and misusing a government seal in connection with the provision of mortgage modification services.
According to court documents and statements made in court, VESCERA was the President of First One Lending Corporation (“First One”) in San Juan Capistrano, Calif. During the peak of the national mortgage crisis, VESCERA and First One offered home mortgage loan modification assistance to homeowners across the United States, including in Connecticut, who were having difficulty repaying their mortgage loans.
From approximately February 2010 until approximately February 2012, VESCERA and First One solicited clients through television advertisements and infomercials produced by National Media Connection of New London, Conn. These advertisements touted the mortgage modification services of an entity known as the National Mortgage Help Center (“NMHC”).
Matthew Goldreich, of East Lyme, Conn., had incorporated NMHC approximately two months after the U.S. Treasury Department announced that it would partner with financial institutions to reduce struggling homeowners’ monthly mortgage payments through a program called the Home Affordable Modification Program (“HAMP”). HAMP consisted of a number of incentives to encourage homeowners and financial institutions to modify existing loans on owner-occupied primary residences in order to help keep these properties out of foreclosure.
NMHC advertisements misrepresented NMHC as being affiliated with or regulated by the U.S. government and falsely stated that NMHC “help[ed] thousands of homeowners every day.” When viewers called the advertised telephone number, they were connected not to NMHC, which operated only as a front and did not provide mortgage modification services for any homeowners, but to clients of National Media Connection, including First One.
VESCERA and First One used NMHC’s name and logo in First One’s promotional materials, application package and other documents. VESCERA also instructed First One employees to introduce themselves to prospective clients as “with the National Mortgage Help Center.”
First One also misrepresented its status with the U.S. Department of Housing and Urban Development (“HUD”). First One employees were instructed to inform homeowners that “[w]e’re a HUD approved lender and we represent the government loan modification programs.” In addition, certain of First One’s forms claimed that the company provided “HUD . . . Housing Counseling assistance” and bore HUD’s seal. In truth, First One had no affiliation with the government mortgage loan assistance programs and was not licensed or approved by HUD for housing counseling or home mortgage loan modification services.
VESCERA pleaded guilty to one count of misuse of a government seal and one count of false advertising. Chief Judge Hall scheduled sentencing for July 26, 2016, at which time VESCERA faces a maximum term of imprisonment of six years.
Goldreich previously pleaded guilty to one count of false advertising. On November 5, 2015, he was sentenced to two years of probation, in including three months of home confinement. He also was ordered to pay a $100,000 fine and $75,794 in restitution.
This investigation is being conducted by the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, and Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Liam Brennan.
Orem Man Charged with Fraud in Indictment Alleging Business was Run as a Ponzi SchemeRead the Press Release
SALT LAKE CITY – Chad Roger Deucher, age 43, of Orem will make a May 26, 2016, appearance in federal court in Salt Lake City to face charges alleging that from March 2010 to February 2016, he operated a Ponzi scheme through a business he controlled that collected about $28 million from about 250 investors. Investigators involved in the case believe about 170 of the investors lost about $16 million in the scheme.
The indictment includes 18 counts of wire fraud and one count of fraud in connection with the purchase and sale of securities. A summons has been issued to Deucher to appear at 1:30 p.m. in U.S. Magistrate Judge Brooke C. Wells’ courtroom.
According to the indictment, Deucher owned and controlled Marquis Properties, a Utah company engaged in real estate transactions. Deucher marketed Marquis as a company of experienced property professionals specializing in acquiring, repairing, and managing high quality cash-flowing properties in several markets across the country, according to the indictment. Deucher claimed that Marquis owned and managed investment properties in desirable areas.
Deucher used direct solicitations, radio advertisements, a website, and real estate and retirement seminars, among other things, to find investors for three types of investments offered through his company. The investment options included turnkey cash flow real estate investments, promissory notes secured by real properties, and joint ventures.
The indictment alleges that Deucher made oral and written misrepresentations about the investments in communications with potential investors. He represented that Marquis located, purchased, renovated and sold single family and small, multi-family homes in lucrative areas of the country. Deucher told investors that Marquis retained renovation crews, property managers and realtors on the ground to assist with all stages of the projects, eliminating the need for direct involvement. According to the indictment, Deucher represented that investors could earn a significant return on their investments. These returns depended on the type of investment being made and varied in length of time period. For example, some investors were promised approximately 8 percent per year for three years, while others were promised 16 percent to 22 percent over an investment period of about one year when rental income was considered. Later in the scheme, according to the indictment, some investors were promised 12 percent to 18 percent for a period of about two weeks to around two months, or 10 percent for investments of about two to six weeks. In truth, the indictment alleges, Deucher tailored the terms of return based on his need for money and what he believed would induce the investor to invest in his company.
According to the indictment, Deucher failed to disclose to investors that the property Marquis offered as collateral were not owned by the company, were substantially encumbered, or were in uninhabitable or blighted condition. He also did not disclose that Marquis was insolvent, the indictment alleges, and was unable to make interest and principal payments to investors and that investor returns were being paid from the funds of new investors.
Deucher also failed to disclose that the securities he offered were not registered and that he was not registered or associated with a securities broker or dealer, all required by law, the indictment alleges.
The indictment alleges Deucher transferred several millions of dollars of client investment funds from business accounts he controlled for his own business and personal interests unrelated to the acquisition or rehabilitation of real property.
The potential maximum penalty for each of the 19 counts in the indictment is 20 years in federal prison. The potential fine for the securities fraud count is $5 million. Each wire fraud count has a potential $250,000 fine.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by FBI special agents. The Orem Police Department and investigators with the Utah County Attorney’s Office also participated in the investigation.
Oahu Woman Given Prison Term for Assaulting Her Child on Alaska-Hawaii FlightRead the Press Release
HONOLULU – U.S. Magistrate Judge Kevin S.C. Chang today sentenced Samantha Lealoha Watanabe, 38, of Oahu, to 30 days of imprisonment and one year of supervised release, including 90 days of home detention for assaulting her 15-month old child while onboard an Alaska Airlines flight from Anchorage to Honolulu on March 3, 2015.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that a jury found Watanabe guilty following a one-week trial in December 2015. According to evidence presented in court, Watanabe repeatedly hit her child in the face with a stuffed doll; hit her child’s face with an open hand; and pulled out tufts of her hair, among other acts. Passengers and flight attendants testified that they did not observe the child do anything to warrant that treatment.
Judge Chang noted that five of Watanabe’s other children had been permanently removed from her custody; that the victim in this case was no longer in her custody; and that Watanabe had just given birth to a seventh child.
The investigation resulting in this prosecution was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Marc A. Wallenstein and Thomas J. Brady conducted the prosecution.
North Carolina Man Sentenced to Life in Prison for Operating Violent and Extensive Sex Trafficking EnterpriseRead the Press Release
Shahid Hassan Muslim, aka “Sharp,” 33, was sentenced today to life in prison for operating an extensive sex trafficking enterprise that recruited women and girls – some as young as 16 years old – into prostitution.
The sentence was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcements Homeland Security Investigations (HSI) Atlanta Division.
In sentencing Muslim, U.S. District Court Judge Robert Conrad Jr. of the Western District of North Carolina also ordered him to pay $13,840 in restitution to the victims of the two sex trafficking counts, which charged Muslim with the sex trafficking of those victims for periods of two months and three months, respectively. On Aug. 11, 2014, a federal jury found Muslim guilty on all counts, including two counts of sex trafficking, one count of kidnapping, one count of production of child pornography, one count of witness tampering and five counts of promoting a prostitution business enterprise.
Evidence presented during Muslim’s four-day trial, including the testimony of five victims, revealed that Muslim’s sex trafficking enterprise operated in Charlotte, North Carolina, and other cities from at least 2010 until his arrest in November 2013. As established by the evidence presented at trial, Muslim recruited vulnerable young women and girls from the Charlotte area and advertised them for prostitution on the internet. He lured them into his scheme by promising that they would be part of a “family” when they had none. Once the women and girls were a part of his enterprise, Muslim demanded all of their proceeds and used brutal violence to control them. As one witness explained, he never hit the victims in the face because it would damage his “merchandise.”
According to the evidence established at trial, Muslim accused one teenage victim of withholding money from him and then proceeded to handcuff and beat her until she admitted to keeping some of her earnings. Muslim’s assaults on other victims included burning one victim’s leg with a cigarette to teach her a lesson; and punching a third victim in the stomach, without warning, as she balanced with her eyes closed during a “DUI test” he forced her to perform. After punching her in the stomach, Muslim then dragged her by her hair to a bathroom and repeatedly punched her until she vomited.
The evidence further showed that Muslim kidnapped one of the victims and viciously beat her after she left and reported him to the police. Witnesses testified that he lured her to a hotel, pretending to be a customer, then attacked her and shoved her into a storage trunk. After transporting the trunk to his house, he handcuffed her, bound her feet and continued to beat her, breaking a toilet in the process. Muslim then left her in the shower – still handcuffed – overnight with cold water running on her until she managed to escape and report the kidnapping to a neighbor the next day.
The evidence also demonstrated that Muslim continued his efforts to intimidate and control the victims even after his arrests on both federal and state charges. He convinced the kidnapping victim to submit a false affidavit declaring his innocence, resulting in dismissal of state charges. He further harassed a victim in the federal case to submit a false affidavit regarding a sexually explicit video that he produced of her when she was 16 years old.
“This defendant preyed on and abused vulnerable young women by running a violent sex trafficking operation,” said Principal Deputy Assistant Attorney General Gupta. “While no amount of jail time can undo the harm he caused and the trauma he inflicted, this sentence sends a clear message that people who engage in human trafficking and violate the most basic standards of human decency will face the full force of justice.”
“Shahid Muslim is a ruthless predator who used lies to lure vulnerable young women and underage girls into his criminal enterprise,” said U.S. Attorney Rose. “But instead of finding the better life his young victims had been promised, they endured unspeakable violence and exploitation in the hands of Muslim for his financial gain. My office will continue to aggressively prosecute those who engage in this illegal business that dehumanizes victims and strips them of their dignity.”
“Shahid Muslim promised his victims the loving support of a family, instead he controlled them through beatings, fear, and intimidation,” said Special Agent in Charge Strong. “The FBI devotes a significant amount of resources to helping sex trafficking victims recover from the trauma they suffer at the hands of ruthless people like Muslim. Today’s sentence is a stark warning, there is a harsh punishment for those who choose to sacrifice another person’s civil rights and freedom for their own profit.”
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with our law enforcement partners,” said Special Agent in Charge Annan. “The sadistic abuse inflicted by this defendant is unspeakable and hopefully victims can now find some relief in knowing the monster who exploited them will be safely locked away for many years.”
This case was investigated by the FBI and HSI, with assistance from the Charlotte-Mecklenburg County Police Department. It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
North Carolina Man Sentenced to Life in Prison for Operating Violent and Extensive Sex Trafficking EnterpriseRead the Press Release
CHARLOTTE, N.C. – Shahid Hassan Muslim, aka “Sharp,” 33, was sentenced today to life in prison for operating an extensive sex trafficking enterprise that recruited women and girls – some as young as 16 years old – into prostitution.
The sentence was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcements Homeland Security Investigations (HSI) Atlanta Division.
In sentencing Muslim, U.S. District Court Judge Robert Conrad Jr. of the Western District of North Carolina also ordered him to pay a total of $13,840 in restitution to the victims of the two sex trafficking counts, which charged Muslim with the sex trafficking of those victims for periods of two months and three months, respectively. On Aug. 11, 2014, a federal jury found Muslim guilty on all counts, including two counts of sex trafficking, one count of kidnapping, one count of production of child pornography, one count of witness tampering and five counts of promoting a prostitution business enterprise.
Evidence presented during Muslim’s four-day trial, including the testimony of five victims, revealed that Muslim’s sex trafficking enterprise operated in Charlotte, North Carolina, and other cities from at least 2010 until his arrest in November 2013. As established by the evidence presented at trial, Muslim recruited vulnerable young women and girls from the Charlotte area and advertised them for prostitution on the internet. He lured them into his scheme by promising that they would be part of a “family” when they had none. Once the women and girls were a part of his enterprise, Muslim demanded all of their proceeds and used brutal violence to control them. As one witness explained, he never hit the victims in the face because it would damage his “merchandise.”
According to the evidence established at trial, Muslim accused one teenage victim of withholding money from him and then proceeded to handcuff and beat her until she admitted to keeping some of her earnings. Muslim’s assaults on other victims included burning one victim’s leg with a cigarette to teach her a lesson; and punching a third victim in the stomach, without warning, as she balanced with her eyes closed during a “DUI test” he forced her to perform. After punching her in the stomach, Muslim then dragged her by her hair to a bathroom and repeatedly punched her until she vomited.
The evidence further showed that Muslim kidnapped one of the victims and viciously beat her after she left and reported him to the police. Witnesses testified that he lured her to a hotel, pretending to be a customer, then attacked her and shoved her into a storage trunk. After transporting the trunk to his house, he handcuffed her, bound her feet and continued to beat her, breaking a toilet in the process. Muslim then left her in the shower – still handcuffed – overnight with cold water running on her until she managed to escape and report the kidnapping to a neighbor the next day.
The evidence also demonstrated that Muslim continued his efforts to intimidate and control the victims even after his arrests on both federal and state charges. He convinced the kidnapping victim to submit a false affidavit declaring his innocence, resulting in dismissal of state charges. He further harassed a victim in the federal case to submit a false affidavit regarding a sexually explicit video that he produced of her when she was 16 years old.
“This defendant preyed on and abused vulnerable young women by running a violent sex trafficking operation,” said Principal Deputy Assistant Attorney General Gupta. “While no amount of jail time can undo the harm he caused and the trauma he inflicted, this sentence sends a clear message that people who engage in human trafficking and violate the most basic standards of human decency will face the full force of justice.”
“Shahid Muslim is a ruthless predator who used lies to lure vulnerable young women and underage girls into his criminal enterprise,” said U.S. Attorney Rose. “But instead of finding the better life his young victims had been promised, they endured unspeakable violence and exploitation in the hands of Muslim for his financial gain. My office will continue to aggressively prosecute those who engage in this illegal business that dehumanizes victims and strips them of their dignity.”
“Shahid Muslim promised his victims the loving support of a family, instead he controlled them through beatings, fear, and intimidation,” said Special Agent in Charge Strong. “The FBI devotes a significant amount of resources to helping sex trafficking victims recover from the trauma they suffer at the hands of ruthless people like Muslim. Today’s sentence is a stark warning, there is a harsh punishment for those who choose to sacrifice another person’s civil rights and freedom for their own profit.”
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with our law enforcement partners,” said Special Agent in Charge Annan. “The sadistic abuse inflicted by this defendant is unspeakable and hopefully victims can now find some relief in knowing the monster who exploited them will be safely locked away for many years.”
This case was investigated by the FBI and HSI, with assistance from the Charlotte-Mecklenburg County Police Department. It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Nine Individuals, Including Five Registered Brokers, Indicted for Orchestrating A $131 Million Market Manipulation SchemeRead the Press Release
BROOKLYN, N.Y. – A five-count indictment was unsealed this morning in federal court in Brooklyn, New York, against nine defendants, Jared Mitchell, the Managing Partner of Mitchell & Sullivan Capital LLC; Richard Brown, a registered broker; Christopher Castaldo, the Chief Executive Officer of Stock Traders Press Inc. and the President of Wall Street Buy Sell Hold Inc.; Gerald Cocuzzo, also known as “Gerry,” a registered broker; Naveed Khan, also known as “Nick,” a registered broker; Herschel Knippa III, also known as “Tres,” the owner and Head Trader at Kenai Capital Management LLC; Maroof Miyana, a registered broker; Pranav Patel, a registered broker; and Louis Petrossi, the founder and Chief Executive Officer of the Wealth Research Institute.[1] The charges include securities fraud, conspiracy to commit securities fraud, wire fraud, money laundering and making a false statement to law enforcement officials in connection with the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly-traded company listed on the NASDAQ under the ticker symbol “FNRG.”
Mitchell, Brown, Castaldo and Khan will be arraigned later today before Magistrate Judge Vera M. Scanlon, at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York. Cocuzzo and Miyana’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 701 Clematis Street, West Palm Beach, Florida. Patel’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 299 East Broward Boulevard, Fort Lauderdale, Florida. Knippa’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 1100 Commerce Street, Dallas, Texas. Petrossi’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 400 South Virginia Street, Reno, Nevada.
The indictment was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“As alleged, the defendants and their network of registered brokers and stock promoters designed an elaborate but fraudulent scheme built on lies, kickbacks and manipulated trading activity to defraud the securities markets, the investing public and their clients. They took a company with essentially no business operations and little revenue and deceived the market and their clients into believing it was worth hundreds of millions of dollars through a dizzying round of unauthorized trades and deceptive promotions. In the end, the deceived investors were left holding the empty bag,” stated United States Attorney Capers. “Today’s nine arrests, across four states, reflect the scope of this fraud and our commitment to aggressively locate and bring to justice those who view the financial markets as a platform to fraudulently enrich themselves.” Mr. Capers expressed his appreciation to the FBI, the agency that led the investigation, and the United States Securities and Exchange Commission, New York Regional Office, for their significant cooperation and assistance in the investigation.
“As alleged, each of the defendants played a role in their scheme to defraud investors of ForceField Energy by using their positions as a stock promoter, brokers, or investor relations to push stock. The scheme ended up costing investors approximately $131 million in losses. The FBI will continue to work with our partners in an effort at ensuring that our financial markets are legal, fair, and equitable,” stated FBI Assistant Director-in-Charge Rodriguez.
As alleged in the indictment and other court filings, between December 2009 and April 2015, the defendants, together with others, engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the appearance of genuine trading volume and interest in the stock; and (3) concealing payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while claiming to be independent of the company. The defendants’ fraudulent scheme caused a loss of approximately $131 million to the investing public.
The Corrupt Brokers
In October 2014, a ForceField executive hired Mitchell to distribute kickbacks to a network of allegedly corrupt registered broker dealers, including Brown, Cocuzzo, Khan, Miyana, and Patel, in exchange for purchasing ForceField stock in their clients’ brokerage accounts. Using offshore entities and bank accounts, ForceField paid Mitchell a ten-percent commission, or kickback, for purchases of ForceField stock generated by the corrupt brokers. Mitchell then shared the ten-percent commission with those who had stuffed their clients’ brokerage accounts with ForceField stock. Mitchell, the corrupt brokers and ForceField did not disclose to the brokers’ clients the ten-percent kickbacks the brokers were receiving for purchasing ForceField stock.
Mitchell and the corrupt brokers concealed their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other. Mitchell, who boasted that he was the “brown bag man,” also attempted to conceal his payment of commissions to the corrupt brokers by withdrawing large sums of money from his bank account and paying the brokers in cash.
Between October 2014 and April 2015 alone, Mitchell and the corrupt brokers conned the brokers’ clients into purchasing more than 425,000 shares of ForceField at a cost of more than $3 million.
The Corrupt Promoters
Throughout its existence, ForceField conducted a series of private placements that raised more than $19.7 million from investors. Unbeknownst to the investing public, a ForceField executive was paying ten-percent kickbacks to a group of allegedly corrupt stock promoters, including Castaldo, Knippa, and Petrossi, to promote ForceField and induce investors to purchase ForceField stock on public exchanges or enter into private stock purchase agreements with the company. The corrupt promoters induced many of these unwitting investors to invest in ForceField at investor conferences or, in Knippa’s case, by touting ForceField during television appearances.
For example, when Knippa appeared on “Varney & Co.,” a financial news show on the Fox Business channel, the host of the show asked Knippa whether he had a stock recommendation. In response, Knippa recommended ForceField, and spoke about the company’s business model. Varney asked Knippa whether he owned ForceField stock, and Knippa responded, “You bet I do. I put my money where my mouth is.” Contrary to his assertion, Knippa did not, at the time, own ForceField stock. Additionally, during this appearance, Knippa failed to disclose that he was being paid kickbacks to promote ForceField.
During the course of this fraudulent scheme, the corrupt promoters duped more than 100 investors into purchasing more than $6.2 million in ForceField stock.
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The wire fraud conspiracy with which all defendants are charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud conspiracy count with which all defendants are charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The money laundering conspiracy count with which all defendants are charged carries a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the funds involved in the illegal transfers. The substantive securities fraud count with which all defendants are charged carries a maximum potential penalty of 20 years in prison and a $5 million fine, or twice the gain or loss from the offense. The false statement count with which Mitchell is charged carries a maximum potential penalty of 5 years in prison and a $250,000 fine.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn Kasulis and Christopher Nasson are in charge of the prosecution.
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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 ww.StopFraud.gov.
The Defendants:
JARED MITCHELL
Age: 34
New York, New YorkRICHARD BROWN
Age: 37
Huntington, New YorkCHRISTOPHER CASTALDO
Age: 44
Glen Head, New YorkGERALD COCUZZO
Age: 37
Delray Beach, FloridaNAVEED KHAN
Age: 33
Staten Island, New YorkHERSCHEL KNIPPA III
Age: 45
Dallas, TexasMAROOF MIYANA
Age: 35
Boca Raton, FloridaPRANAV PATEL
Age: 35
Tamarac, FloridaLOUIS PETROSSI
Age: 75
Reno, NevadaEDNY Docket No. 16-CR-234 (NGG)
[1] The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
New York City Man Sentenced to 27 Months in Federal Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on May 2, 2016, Jesse Harris, 38, of Brooklyn, New York was sentenced to 27 months in federal prison after his guilty plea to charges that he distributed heroin. U.S. District Court Judge William K. Sessions III also ordered that Harris serve three years of supervised release following his prison term.
According to court records, from 2014 until his arrest on June 30, 2015, Harris regularly traveled from the New York City area to Chittenden County, Vermont with heroin to sell. Harris would stay at the apartment of local residents and use that apartment as a base from which to sell heroin to his customers. On June 30, 2016, agents from the Drug Enforcement Administration (DEA) and the Burlington Police Department, who had been jointly investigating Harris, arrested him after he arrived in Vermont via bus. Harris had approximately 500 bags of heroin on his person.
For his crime, Harris faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Harris receive a prison term between 51 and 63 months. The United States argued that Harris should receive a 51-month sentence. In support, the government argued that Harris, who was not a heroin user, trafficked heroin to Vermont solely to earn money and therefore capitalized on Vermont’s heroin epidemic and the suffering of the community.
In determining that a more lenient sentence was appropriate in this case, Judge Sessions considered Harris’ lack of a serious criminal record and the fact that he abided by his pretrial conditions of release, among other factors.
United States Attorney Eric Miller commended the efforts of DEA and the Burlington Police Department for their coordinated efforts in this investigation.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Harris is represented by David McColgin of the Federal Public Defender’s Office.
Navajo Man Sentenced to 23 Years in Federal Prison for Aggravated Sexual Abuse of a MinorRead the Press Release
PHOENIX - Yesterday, Kenneth Parker, of Keams Canyon, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Judge John J. Tuchi to 23 years in prison, followed by a term of 5 years of supervised release. Parker had previously pleaded guilty to aggravated sexual abuse of a minor.
The case involved the sexual abuse of multiple victims, also Navajo Nation members, over nearly 30 years, from 1987 through 2015. All incidents occurred on the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR- 158101-JJT
RELEASE NUMBER: 2016-038_Parker
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
NYPD Officer Andre Clarke Pleads Guilty to Conspiracy to Distribute Oxycodone in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Andre Clarke, age 37, of the Bronx, New York, plead guilty on May 2, 2016 before the Honorable William K. Sessions, III, to conspiring to distribute Oxycodone in Vermont from 2011 through June 2014. Clarke, a New York City police officer, received a preliminary sentencing date of August 29, 2016. Judge Sessions released him on previously imposed conditions until his sentencing.
On July 7, 2015, a federal grand jury sitting in Burlington handed down a multi-count Indictment, which charges Clarke, Michael Foreste, and Dannis Hackney with the Vermont Oxycodone conspiracy. Foreste and Hackney are charged with additional drug trafficking and money laundering offenses. Both men have entered pleas of not guilty and are awaiting trial. According to prosecutors, Clarke, who lived in the Bronx and Long Island during the events in question, supplied oxycodone to Michael Foreste, of Valley Stream, New York. Foreste, in turn, supplied the pills to Dannis Hackney, of Burlington, Vermont, who sold them to Burlington area addicts. Foreste personally brought Hackney pills, and sometimes sent them via U.S. Mail. Clarke, Foreste, and Hackney transferred drug proceeds using various bank accounts. Foreste and Hackney are also each charged with two counts of money laundering based on this banking activity. Foreste and Hackney have been in custody since their arrests in June 2014 and are awaiting trial.
Each defendant faces up to 20 years in prison in the event of conviction on the oxycodone charge. The money laundering counts also carry a maximum penalty of 20 years' imprisonment. The actual sentence, in the event of conviction, will be determined by the Court with reference to the advisory Federal Sentencing Guidelines and other statutory sentencing factors.
The investigation has spanned about two years and is a collaborative effort of Homeland Security Investigations; the Federal Bureau of Investigation; the Drug Enforcement Administration; and the New York City Police Internal Affairs Bureau.
Assistant United States Attorney Christina E. Nolan is handling the prosecution. Clarke is represented by Chandler Matson, Esq., of Stowe, Vermont.