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Friday 11 March 2016
Former Department of Veterans Affairs Nurse Sentenced to 60 months in prison for Altering and Falsifying VA Computer RecordsRead the Press Release
Enrique Martinez Mathews, a former Registered Nurse at Veteran Affairs (VA) Medical Center Miami, was sentenced on March 2, 2016, to 60 months in prison after previously pleading guilty to altering and falsifying VA Computer Records (obstruction and computer related fraud), in violation of Title 18, United States Code, Sections 1519 and 1030.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General, Criminal Investigations Division (VA OIG), made the announcement.
According to the court record, Martinez interfered with an internal investigation at the VA Medical Center Miami. The internal investigation related to the death of a veteran in Martinez’s care. The internal investigation revealed that Martinez altered VA patient records of the veteran under his care, while the patient recovered in the Surgical Intensive Care Unit at the VA in Miami. The defendant’s actions caused appropriate medical treatment to be withheld from the veteran, who later passed away. Martinez then altered additional records in an attempt to conceal his actions.
U.S. Attorney Wifredo Ferrer stated, “Protecting our veterans is a national concern. Together with our partners at the Veterans Affairs Administration, the U.S. Attorney’s Office will identify for prosecution those individuals who compromise the personal information and potential safety and security of our citizens.”
Special Agent in Charge Monty Stokes said, “This investigation represents the VA OIG’s commitment to investigate obstruction as well as alterations of medical records that needlessly compromise veterans’ care and subject them to harm. We will continue to vigorously investigate employees whose actions corrupt the integrity of VA’s health care records relied upon by VA clinicians who treat our nation’s heroes.”
Mr. Ferrer commended the investigative efforts of the VA OIG. The case was prosecuted by Assistant U.S. Attorneys Benjamin Widlanski and Jonathan Kobrinski.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Final Defendant Pleads Guilty in Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
The final defendant pled guilty in a stolen identity tax refund fraud scheme involving student financial services accounts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Delany De-Leon Colon, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Emmanuel Avrilien, 23, of Miami, pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of theft of government money, in violation of Title 18, United States Code, Section 641. The defendant was remanded into custody after his guilty plea was accepted by the Court.
Co-defendants Andy Lamour, 22, Tamica Smith, 26, Marie Joseph, 25, and Gerrey Cherrelus, 22, all of Miami, each previously pled guilty to the same two charges, and Sandy Jean-Louis, 21, of Miami, previously pled guilty to the conspiracy charge. All of the co-defendants have been sentenced. As part of their plea agreements, Avrilien, Lamour, Smith, Joseph, Cherrelus and Jean-Louis agreed to pay restitution in the amounts of $98,481.00, $26,172.00, $17,395.00, $22.399.00, $13,242.00, and $28,561.63, respectively.
According to court documents, Lamour, Cherrelus and Jean-Louis were students at Miami Dade College; Avrilien, Lamour, Smith and Joseph were employees of a Target Store. From April 17, 2012 to January 24, 2013, the defendants participated in a tax fraud scheme where the defendants received fraudulently obtained tax refunds in their personal Higher One, Inc. and/or Citibank accounts. Avrilien paid the other defendants for allowing their accounts to receive the stolen tax refunds, and directed Lamour to recruit other Target Store employees and Miami Dade College students to participate in the scheme.
Court documents also state that Avrilien and unknown co-conspirators filed a total of 145 fraudulent tax returns which directed the tax refunds to be deposited into one of the other defendant’s accounts. After the tax refunds were deposited into a defendant’s account, that defendant withdrew the money from the account at ATMs or through counter withdrawals.
Sentencing for Avrilien is scheduled for May 19, 2016 at 10:30 a.m. before Chief Judge K. Michael Moore. At sentencing, the Avrilien faces up to five years in prison for the conspiracy charge, and up to ten years in prison for the theft of government money charge.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to USPIS, IRS-CI, and the FBI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Convicts Four West Coast Crips Street Gang Members of Racketeering Conspiracy Involving Murders, Sex Trafficking and RobberyRead the Press Release
For Further Information, Contact Assistant U.S. Attorneys Todd Robinson (619) 546-7994 and David Leshner (619) 546-7921
NEWS RELEASE SUMMARY – March 11, 2016
SAN DIEGO, CA – Four members of the West Coast Crips criminal street gang were convicted by a federal jury today of participating in a racketeering enterprise involving execution-style murders, a takeover robbery, witness intimidation and other acts of violence.
The jury found defendants Terry Carry Hollins, Jermaine Gerald Cook, Marcus Anthony Foreman and Wilbert Ross guilty of Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity at the conclusion of a five-week trial and about eight hours of deliberations. The jury also found Ross guilty of two counts of sex trafficking. U.S. District Judge Dana M. Sabraw set sentencing for June 24, 2016 at 1 p.m. The defendants face up to life in prison.
The four convicted defendants were arrested and charged in 2014 as part of a larger investigation involving 36 other defendants. Thirty-four have pleaded guilty. One, Cleotha Young, went to trial in June 2015, was convicted by a jury and sentenced to 20 years in prison. The lead defendant, Randy Graves, is set for trial on March 28, 2016.
“As a result of today's verdicts, and the dozens of guilty pleas that preceded them, these ruthless and ultra-violent gang members will likely serve decades in prison, unable to further terrorize San Diego neighborhoods,” said U.S. Attorney Laura Duffy. “Today, Hollins, Cook, Foreman and Ross were held accountable for executing their friends, random people, and anyone else who dared to challenge them. With this verdict, the jury has said, ‘Enough!’”
"Today's convictions are an example of the FBI's commitment to working with our law enforcement partners in identifying, disrupting and dismantling violent street gangs that prey upon the vulnerable and threaten the safety of our communities" commented FBI Special Agent in Charge, Eric S. Birnbaum. "The FBI and our partners will continue to aggressively investigate and prosecute those who victimize our communities and undermine the safety and security of our neighborhoods.”
The federal racketeering statute known as “RICO” historically has been used to prosecute mobsters and organized crime, but federal prosecutors have been using the statute on street gangs in recent years because the gangs are increasingly acting as organized criminal enterprises.
During this trial, prosecutors set out to show the jury how the defendants worked together as a criminal enterprise to commit six murders, to use a 15-year-old girl and another female as prostitutes, and to commit robbery on behalf of the West Coast Crips.
The government called about 100 witnesses, including several street gang members, a shooting victim, friends and associates of the defendants, representatives from the Medical Examiner’s Office and dozens of San Diego Police Department homicide and gang detectives, police officers and criminalists.
The evidence presented by the government included court-authorized wiretap interceptions and recordings of telephone, cell phone and jailhouse conversations between the defendants and others, as well as cell phone videos of the defendants celebrating their West Coast Crips membership and discussing the crimes they were committing.
The jury found that the defendants acted as a criminal enterprise to commit the following murders and other violent acts:
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Defendant Cook fatally shot Joseph Hutchins, a 19-year-old who was fatally shot while riding his bicycle down Orange Avenue for wearing a red shirt, the color of a rival gang.
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Defendant Foreman approached the victim, Andres Caldera, asked for a cigarette then issued a gang challenge to him: “Where are you from?” When Caldera answered by asking where Foreman was from, Foreman yelled, “I am from West Coast 30s!” and pulled out a .40-caliber handgun, firing a single shot at Caldera’s face.
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Foreman, Ross and Hollins robbed a Logan Heights business in takeover style, forcing employees onto the floor and holding guns to their heads. During a police chase, the trio ditched their getaway car and the gun, but officers arrested all three and recovered the gun - which was the same gun used in the murder of Caldera.
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West Coast Crip member Meashal Fairley was murdered in front of a San Diego nightclub because of Fairley’s suspected cooperation with law enforcement. Hollins and Cook were connected to the scene of the crime through DNA evidence.
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Another killing occurred in the parking lot of a fast food restaurant. Defendant Ross had a dispute with a man over a rental car. They set up a meeting at the restaurant, supposedly to resolve the dispute. But upon arrival, the man was attacked by a group of West Coast Crips led by Ross. In self-defense, the man fatally stabbed one of his attackers, Jeffrey “JJ” Rees.
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West Coast Crips member Paris Hill was murdered by fellow Crips for giving a statement to police about the Rees murder. In one recording, Hollins told his cellmates: “That's how we did the boy…When it was time . . . I seen it all in his face . . . but cuz blue, he was a gangster though. And he
knew that . . . it was his doing.” Prosecutors argued before the jury that this was an admission that he participated in Hill’s murder.
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Chyrene Borgen, a West Coast Crip associate, was gunned down at a Halloween party after she had criticized the defendants for murdering Meashal Fairley. Following this murder, several defendants posted photos of themselves on Facebook from the murder scene. Defendant Hollins is wearing a T-shirt that said: “3 BABIEZ, YELLOW TAPE GANG, ANYBODY KILLA.” The defendants appeared on cell phone videos boasting about their crimes.
This case was prosecuted by Assistant U.S. Attorneys Todd Robinson, David Leshner, Jose Castillo and Stephen Wong.
These guilty verdicts are the fruit of the collaborative work of the FBI’s East County Regional Gang Task Force and the Violent Crimes Gang Task Force, the San Diego Police Department’s gang and homicide units; the ATF; the El Cajon Police Department; the La Mesa Police Department; San Diego County Probation; the IRS; U.S. Postal Inspectors; the San Diego County Sheriff’s Department; and the California Highway Patrol.
This investigation was coordinated by an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was created to consolidate and coordinate all law enforcement resources in this country's
battle against major drug trafficking rings, drug kingpins, and money launderers.
DEFENDANTS
Case Number: 14mj1494
Terry Carry Hollins Age: 33 San Diego
Jermaine Gerald Cook Age: 31 San Diego
Marcus Anthony Foreman Age: 28 San Diego
Wilbert Ross Age: 32 Chula Vista
SUMMARY OF CHARGES
All Defendants:
Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity, in violation of Title 18, U.S.C. Section 1962 (d)
Maximum Penalty, based on the underlying racketeering crimes: Up to life in prison.
Defendant Ross:
Sex Trafficking of a Minor, in violation of 18 USC 1591
Maximum Penalty: Life in prison
Sex Trafficking by Force, Fraud or Coercion, in violation of 18 USC 1591
Maximum Penalty: Life in prison
INVESTIGATING AGENCIES
San Diego Police Department Gang and Homicide Units
East County Regional Gang Task Force
Violent Crimes Task Force - Gang Group
Task Force agencies include:
FBI
San Diego Police Department
ATF
El Cajon Police Department
La Mesa Police Department
San Diego County Probation
IRS
U.S. Postal Inspectors
San Diego County Sheriff’s Department
California Highway Patrol.
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Federal Jury Convicts Boise Man of Possession with Intent to Distribute Marijuana and Unlawful Possession of a FirearmRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Shaun McNabb, 35, of Boise, Idaho, was convicted by a federal jury of possession of a controlled substance with intent to distribute and unlawful possession of a firearm. McNabb was charged by a superseding indictment on February 23, 2016.
According to the evidence presented at trail, on December 25, 2014, a Boise Police officer observed McNabb driving early in the morning and believed he was driving on a suspended license.McNabb pulled into a Shell gas station without signaling and the officer initiated a traffic stop. Before the officer could exit his patrol vehicle, McNabb had already got out of his vehicle, and refused the officer’s repeated commands to get back into his vehicle. McNabb was placed under arrest for driving without privileges and resisting or obstructing officers.A drug dog later gave a positive alert for the presence of drugs within the vehicle. The vehicle was then searched, where the officer located a grey backpack in the trunk. In the backpack the officer found a 45 caliber handgun, a magazine containing ten 45 caliber rounds, one loose 45 caliber round, a digital scale, and two large vacuum sealed bags containing more than one pound of marijuana. Because McNabb had previously been convicted of a felony, he was prohibited from possessing firearms under federal law.
McNabb is set for sentencing on June 1, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. For possession of marijuana with intent to distribute, McNabb faces not more than five years in prison, a maximum fine of $250,000, and at least two years of supervised release. For unlawful possession of a firearm, McNabb faces not more than 10 years, in prison, a maximum fine of $250,000, and not more than three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Boise Police Department.
The case was 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.
Federal Jury Convicts A Serial Convenience Store RobberRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Joshua Anthony Rivera (28, Orlando) guilty of interfering with interstate commerce by robbery, brandishing a short-barreled shotgun in the course of committing those robberies, and possessing a firearm as a convicted felon. He faces a mandatory minimum term of 35 years, up to life, in federal prison. A sentencing hearing is scheduled for June 1, 2016. Rivera was indicted on August 26, 2015.
According to evidence presented at trial, between June 7 and June 17, 2015, Rivera robbed three convenience stores and a grocery store using a short-barreled shotgun. During the trial, victims of those robberies testified about their terrifying experiences, including one father whose young daughter had been with him during the robbery. In addition, surveillance videos revealed that the robber had worn some of the same articles of clothing during multiple robberies, particularly the same pair of athletic shoes. Trial evidence also showed that Rivera had used the same short-barreled shotgun during each robbery, and also had used the same Ford Expedition during at least two of the robberies.
When law enforcement officers arrested Rivera at his hotel, shortly after the last robbery, they found articles of clothing, the short-barreled shotgun, the Ford Expedition, and several other items matching those used during the robberies.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Plant City Police Department, the Manatee County Sheriff’s Office, and the Pasco County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Taylor G. Stout.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the March 2016 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Rodney Mark Aguirre. Felon in Possession of Firearms and Ammunition. Aguirre, 27, of Tulsa, is charged with possession of firearms including shotguns and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. In addition, he would forfeit the firearms involved in the firearm offense. The Drug Enforcement Administration is the investigating agency.
Gary Dewayne Benedict. Felon in Possession of Firearms. Benedict, 44, of Broken Arrow, is charged with possession of firearms after prior felony convictions. If convicted, he faces the statutory maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Jeffrey Scott Bruce. Bank Robbery. Bruce, 51, is charged with robbing Arvest Bank in January 2016. If convicted, he faces the statutory maximum penalty of 20 years in prison and a $250,000 fine. The Federal Bureau of Investigation is handling the case.
Michelle Ranee Krafft. Possession with Intent to Distribute Methamphetamine and Possession with Intent to Distribute Marijuana. Krafft, 35, of Owasso, is charged with possession with intent to distribute methamphetamine and marijuana. If convicted, she faces the statutory maximum penalty of 20 years in prison and a $1,000,000 fine for possession with intent to distribute methamphetamine and the statutory maximum penalty of five years in prison and a $250,000 for possession with intent to distribute marijuana. In addition, she faces the forfeiture of drug proceeds and property used to facilitate the drug offenses. The Owasso Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives were the investigating agencies.
William Jeffrey Johnson Jr. Coercion and Enticement, Sex Trafficking of Children, and Interstate Trafficking and Racketeering. Johnson Jr., 26, of Midwest City, Oklahoma, is charged with enticing and recruiting a girl, whom he believed to be 15 years old, to engage in prostitution. If convicted, he faces the statutory minimum penalty of 10 years in prison and a $250,000 fine for coercion and enticement and sex trafficking of children charges; and a statutory maximum penalty of five years in prison and a $250,000 fine for the interstate trafficking and racketeering charge. The Tulsa Police Department is the investigating agency.
Miguel Lara-Rodriguez. Reentry of Removed Alien. Lara-Rodriguez, 37, is charged with having returned to the United States unlawfully after being deported in October 2004 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Juan Carlos Ramirez-Saldiva. Reentry of Removed Alien. Ramirez-Saldiva, 41, is charged with having returned to the United States unlawfully after being deported in July 2006 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jesus Juan Rosales, Sergio Yanez, Jose Luis Rodriguez-Almader, Ivan Jimenez, Eddy Alejandro Hernandez, Margarita Solis Rodriguez, Romeo Flores, and Andres Rubio. Drug Conspiracy Rosales, 35, of Bixby; Yanez, 30, of Broken Arrow; and Rodriguez-Almader, 27, Jimenez, 34, Hernandez, 27, Rodriguez, 35, Flores, 31, and Rubio, 26, all of Tulsa, are charged with conspiracy to possess with intent to distribute 500 grams or more of cocaine and 500 grams or more of methamphetamine. If convicted, the statutory minimum penalty is 10 years and a maximum penalty of life in prison, and a $10,000,000 fine. In addition, the defendants face a criminal forfeiture money judgment representing proceeds of the drug conspiracy, and forfeiture of seized currency. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa Police Department are the investigating agencies.
Luis Ernesto Saldana-Plaza. Reentry of Removed Alien. Saldana-Plaza, 32, is charged with having returned to the United States unlawfully after being deported in August 2007 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Rodrigo Segovia-Barraza. Reentry of Removed Alien. Segovia-Barraza, 30, is charged with having returned to the United States unlawfully after being deported in September 2013 from Eagles Pass, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Marcos Suazo-Otero. Reentry of Removed Alien. Suazo-Otero, 40, is charged with having returned to the United States unlawfully after being deported in March 2009 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
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Evgeny Buryakov Pleads Guilty in Manhattan Federal Court in Connection with Conspiracy to Work for Russian IntelligenceRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that EVGENY BURYAKOV, a/k/a “Zhenya,” pled guilty today to conspiring to act in the United States as an agent of the Russian Federation, without providing prior notice to the Attorney General.
U.S. Attorney Preet Bharara said: “An unregistered intelligence agent, under cover of being a legitimate banker, gathers intelligence on the streets of New York City, trading coded messages with Russian spies who send the clandestinely collected information back to Moscow. This sounds like a plotline for a Cold War-era movie, but in reality, Evgeny Buryakov pled guilty today to a federal crime for his role in just such a scheme. More than two decades after the end of the Cold War, Russian spies still seek to operate in our midst under the cover of secrecy. But in New York, thanks to the work of the FBI and the prosecutors in my office, attempts to conduct unlawful espionage will not be overlooked. They will be investigated and prosecuted.”
Assistant Attorney General John P. Carlin said: “Evgeny Buryakov pleaded guilty to covertly working as a Russian agent in the United States without notifying the Attorney General. Foreign nations who attempt to illegally gather economic and other intelligence information through espionage pose a direct threat to U.S. national security. The National Security Division will continue to work with our law enforcement partners to identify and hold accountable those who illegally operate as covert agents within the United States.”
According to the Complaint, the Indictment, other court filings, and statements made during court proceedings:
Beginning in 2012, bURYAKOV worked in the United States as an agent of Russia’s foreign intelligence agency, known as the “SVR.” BURYAKOV operated under “non-official cover,” meaning he entered and remained in the United States as a private citizen, posing as an employee in the Manhattan office of a Russian bank, Vnesheconombank, also known as “VEB.” SVR agents operating under such non-official cover – sometimes referred to as “NOCs” – typically are subject to less scrutiny by the host government, and, in many cases, are never identified as intelligence agents by the host government. As a result, a NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the United States Attorney General. Department of Justice records indicate that BURYAKOV never notified the United States Attorney General that he was, in fact, an agent of the Russian Federation.
BURYAKOV worked in New York with at least two other SVR agents, Igor Sporyshev and Victor Podobnyy. From November 22, 2010, to November 21, 2014, Sporyshev officially served as a trade representative of the Russian Federation in New York. From December 13, 2012, to September 12, 2013, Podobnyy officially served as an attaché to the Permanent Mission of the Russian Federation to the United Nations. The investigation, however, showed that Sporyshev and Podobnyy also worked as officers of the SVR. For their roles in the charged conspiracy, Sporyshev and Podobnyy were charged along with BURYAKOV in January 2015. However, Sporyshev and Podbonyy no longer lived in the United States and thus were not arrested.
BURYAKOV’s Co-Conspirators Are Recorded Inside the SVR’s New York “Residentura”
During the course of the investigation, the FBI recorded Sporyshev and Podobnyy speaking inside the SVR’s offices in New York, known as the “Residentura.”
The FBI obtained the recordings after Sporyshev attempted to recruit an FBI undercover employee (“UCE-1”), who was posing as an analyst from a New York-based energy company. In response to requests from Sporyshev, UCE-1 provided Sporyshev with binders containing purported industry analysis written by UCE-1 and supporting documentation relating to UCE-1’s reports, as well as covertly placed recording devices. Sporyshev then took the binders to, among other places, the Residentura.
During subsequent recorded conversations, Sporyshev and Podobnyy discussed, among other things, Sporyshev’s SVR employment contract and his official cover position, their work as SVR officers, and the FBI’s July 2010 arrests of 10 SVR agents in the United States, known as the “Illegals.”
Sporyshev and Podobnyy also discussed BURYAKOV’s prior service with the SVR in South Africa. BURYAKOV worked in South Africa between approximately 2004 and 2009, officially as a representative of VEB. During a conversation about Sporyshev’s cover position in New York, Podobnyy related that, when BURYAKOV was working in South Africa, he had dinner with an SVR official and BURYAKOV’s supervisor at VEB and that, during the dinner, the SVR official told the VEB official that BURYAKOV was an “employee of the Service,” i.e., the SVR.
Further, Sporyshev and Podobnyy were recorded discussing, among other things, their (i) attempting to recruit New York City residents as intelligence sources for Russia; (ii) tasking BURYAKOV to gather intelligence; and (iii) transmitting intelligence reports prepared by BURYAKOV back to SVR headquarters in Moscow.
The directives from the SVR to BURYAKOV, Sporyshev, and Podobnyy, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential United States sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
BURYAKOV’s Intelligence Taskings
Sporyshev was responsible for relaying intelligence assignments from the SVR to BURYAKOV.
BURYAKOV Drafts a Proposal for the SVR’s “Active Measures Directorate”
In May 2013, Sporyshev and Podbonyy were recorded discussing a proposal that BURYAKOV had drafted about a planned deal in which Bombardier Aircraft Company (“Bombadier”) in Canada would manufacture certain airplanes in Russia. Sporyshev noted that Canadian “unions were resisting” and that BURYAKOV’s “proposal [was] for MS” – the SVR’s Active Measures Directorate – to “pressur[e] the unions and secur[e] from the company a solution that is beneficial to us.” Other evidence developed during the investigation showed that, around the time of this conversation, BURYAKOV had conducted Internet searches relating to Bombardier and labor unions and, earlier, had obtained news articles regarding the planned deal and also attended a conference in Canada that Bombardier personnel also attended.
BURYAKOV Assists Sporyshev in Attempting to Obtain Sensitive Information About the New York Stock Exchange
Also, on May 21, 2013, Sporyshev called BURYAKOV, greeted him, and then described a tasking from “top sources” relating to three questions that ITAR-TASS, a Russian news agency, could put to the New York Stock Exchange. Sporyshev called the defendant back approximately 20 minutes later. During the call, BURYAKOV proposed questions regarding (i) exchange traded funds (ETFs), including the “mechanisms of their use to destabilize the market;” (ii) “curbing of trading robot activities;” and (iii) “technical parameters” and “other regulations directly related to the exchange.” On July 8, 2013, a purported “bureau chief” for ITAR-TASS sent an email to an employee of the New York Stock Exchange that parroted the questions that BURYAKOV proposed to Sporyshev.
BURYAKOV Assists Sporyshev in Analyzing the Effect of Sanctions
Another example of an intelligence tasking occurred in late March 2014. Specifically, on March 28, 2014, Sporyshev was recorded telling BURYAKOV that Sporyshev needed help researching the “effects of economic sanctions on our country,” among other things. A few days later, on April 2, 2014, Sporyshev called BURYAKOV and stated, in an intercepted conversation, that he had not seen BURYAKOV in a while, and asked to meet BURYAKOV outside VEB’s office in Manhattan in 20 minutes. A court-authorized search of BURYAKOV’s computer at VEB revealed that, at around the time of this telephone call, BURYAKOV conducted the following internet searches: “sanctions Russia consiquences” [sic] and “sanctions Russia impact.”
Two days later, on April 4, 2014, BURYAKOV called Sporyshev and, in an intercepted conversation, stated that he (BURYAKOV) “wrote you an order list,” and suggested that they meet. Approximately 20 minutes later, Sporyshev met BURYAKOV in the driveway of BURYAKOV’s home. Their encounter, which was captured by a video surveillance camera located near BURYAKOV’s residence, lasted approximately two minutes. On the video footage, the defendants appeared to exchange a small object.
Clandestine Meetings and Communications
During the course of their work as covert SVR agents in the United States, BURYAKOV, Sporyshev, and Podobnyy regularly met and communicated using clandestine methods and coded messages, in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. These efforts were designed, among other things, to preserve their respective covers as an employee of VEB (BURYAKOV), a trade representative of the Russian Federation in New York (Sporyshev), and an attaché to the Permanent Mission of the Russian Federation to the United Nations (Podobnyy).
During the investigation, the FBI intercepted numerous calls between BURYAKOV and Sporyshev in which one of the men told the other that he needed to meet for some purpose, such as to transfer an item (such as a “ticket,” “book,” or “list,”) or for a purported social purpose. In fact, BURYAKOV and Sporyshev used this coded language to signal that they needed to exchange intelligence information.
FBI surveillance revealed that, at some of these meetings between BURYAKOV and Sporyshev, they exchanged documents or other small items. Notably, despite discussing on approximately a dozen occasions the need to meet to transfer “tickets,” BURYAKOV and Sporyshev were – other than one occasion where they discussed going to a movie – never observed attending, or discussing in any detail, events that would typically require tickets, such as a sporting event or concert.
BURYAKOV’s Receipt of Purported Official United States Government Documents
In the summer of 2014, BURYAKOV met multiple times with a confidential source working for the FBI (“CS-1”) and an FBI undercover employee (“UCE-2”). Both CS-1 and UCE-2 purported to be working on a casino development project in Russia.
During a conversation recorded on July 22, 2014, Sporyshev warned BURYAKOV that meeting with UCE-2 might be a “trap” but authorized BURYAKOV to go ahead so he could make a better assessment.
During the course of the subsequent meetings, and consistent with his interests as a Russian intelligence agent, BURYAKOV demonstrated his strong desire to obtain information about subjects far outside the scope of his work as a bank employee. During these meetings, BURYAKOV also accepted documents that were purportedly obtained from a U.S. government agency and which purportedly contained information potentially useful to Russia, including information about United States sanctions against Russia.
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BURYAKOV, 41, pled guilty to one count of conspiring to act in the United States as an agent of the Russian Federation without providing notice to the Attorney General, which carries a maximum sentence of five years. This statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed on the defendant will be determined by the judge.
BURYAKOV will be sentenced on May 25, 2016, at 11:00 a.m.
U.S. Attorney Bharara praised the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Assistant U.S. Attorneys Emil J. Bove III, Brendan F. Quigley, and Stephen J. Ritchin of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance provided by Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.
East St. Louis Man Pleads Guilty to Conspiring to Commit Sex Trafficking of Children by Force, Fraud, and Coercion and to Sex Trafficking of A Child by Force, Fraud, and CoercionRead the Press Release
Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today, that Michael Johnson of East St. Louis, Illinois pled guilty in federal district court to one count of conspiracy to commit sex trafficking of children by force, fraud, and coercion and three counts of child sex trafficking by force, fraud, and coercion. Johnson was detained, that is, held without bond, pending sentencing, which is scheduled for July 26, 2016, at 9:30 AM before the Honorable Staci M. Yandle, United States District Judge. At sentencing, Johnson faces any term of imprisonment or life imprisonment on the conspiracy count, followed by a minimum of five years on supervised release. Johnson faces a mandatory minimum sentence of fifteen (15) years imprisonment up to life imprisonment on the three counts of sex trafficking of a child by force, fraud, and coercion, followed by a minimum of five years on supervised release. In addition to a term of imprisonment, Judge Yandle could impose a fine of up to $250,000 per count. The Court will also impose a special assessment fee of $100 per count.
Facts revealed in open court showed that in approximately April 2009, Johnson agreed with a coconspirator to operate a prostitution business. Sometime after that point but from at least approximately December 2009 and continuing through July 2013, Johnson began recruiting enticing, and obtaining more women to work in his business, including four minor victims. Johnson recruited two of the minors from the East St. Louis, IL area while they were homeless. He recruited the other two minors over a chat line and over the internet. Johnson used fear, threats of physical harm, actual physical harm, lies, and verbal manipulation to cause the minor victims to engage in sex intercourse or other sex acts for money. Johnson and his coconspirator photographed the minors and created advertisements offering their services in the escorts section of Backpage.com. Three of the victims turned over all of the cash to Johnson and the fourth turned over a portion. Johnson knew or was aware of, but carelessly disregarded how old the minor victims actually were. The youngest of the four minor victims began working for Johnson when she was 15 years old.
The case was investigated by the Federal Bureau of Investigation Springfield Division and members of the FBI’s Child Exploitation Task Force in Fairview Heights. Assistant United States Attorney Monica A. Stump is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Drunk Driver Convicted of Involuntary Manslaughter in Fatal Baltimore-Washington Parkway Car CrashRead the Press Release
Greenbelt, Maryland – A federal jury convicted Charles Jerome Wiggins, age 25, of Cottage City, Maryland, late yesterday of two counts of involuntary manslaughter and reckless driving.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to evidence presented at the three day trial, on December 12, 2013 at 2 a.m., Wiggins was driving a car on the Baltimore-Washington Parkway. His wife, Kiana Wiggins, who had turned 34 that day, was in the front passenger seat, and his sister-in-law, Angel Barbour, age 21, was sitting in the back behind her. His sister-in-law’s boyfriend was also sitting in the back seat. Wiggins rear-ended a pickup truck that was driving in the same direction. The truck went into the woods, and Wiggins’s car flipped over and skidded on its roof more than 200 feet. The two women were killed. Wiggins was found to have a blood alcohol level of .19%.
Wiggins faces a maximum sentence of sixteen years in prison for the two involuntary manslaughter counts, and six months in prison for reckless driving. U.S. District Judge George J. Hazel has scheduled sentencing for June 21, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Conor Mulroe, of the U.S. Department of Justice, who prosecuted the case.
Daughter of Former Federal Employees Pleads Guilty to Stealing over $700,000 in Retirement BenefitsRead the Press Release
WASHINGTON – Stephanie Carethers, 47, of Capitol Heights, Md., pled guilty today to a charge of first-degree theft for taking approximately $702,000 in federal retirement pension benefits after her mother’s death, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Acting Inspector General for the U.S. Office of Personnel Management (OPM).
Carethers pled guilty in the U.S. District Court for the District of Columbia. She is to be sentenced on June 16, 2016, at 10:00 a.m., by the Honorable Colleen Kollar-Kotelly. Under the District of Columbia’s voluntary sentencing guidelines, she faces a possible sentence of six to 24 months of incarceration. Carethers also has agreed to pay restitution in an amount of $702,949.
According to the statement of the offense, signed by the defendant, OPM manages pension benefits for retired employees of the United States government. The Civil Service Retirement System (CSRS) is a retirement system covering federal employees who entered covered federal service before Jan. 1, 1987. Upon retirement from civil service, the federal employees covered by CSRS become CSRS annuitants and are entitled to CSRS benefits throughout their lifetimes. In addition, a CSRS annuitant has the option to elect a survivor benefit for his/her spouse; if selected, a spousal benefit allows for the annuitant’s surviving spouse to continue to receive a reduced amount of benefits throughout the spouse’s lifetime.
OPM pays retirement annuity benefits to the retired federal government employee only during his/her lifetime; payments cease upon the employee’s death. OPM pays survivor annuity benefits to the annuitant’s spouse only during his/her lifetime; payments cease upon the spouse’s death.
The defendant’s mother worked for the federal government from 1941 to 1986. From 1941 to 1945, she worked for the Executive Office of the President for Emergency Management, and then worked for the U.S. State Department from 1945 to 1986. She died on April 23, 2001. The defendant’s father also worked for the U.S. government until his retirement in June 1986. He died on March 7, 2002, surviving his wife by about one year.
Although Carethers notified Maryland’s Division of Vital Records that her mother died, she did not notify OPM. Unaware of the death, OPM paid approximately $495,967 in retirement annuity benefits from 2001 until March 2010 by way of direct deposits into a SunTrust Bank savings account solely in the name of the defendant’s parents.
Although Carethers likewise notified Maryland’s Division of Vital Records that her father died on March 7, 2002, she did not notify OPM. However, OPM learned of his death and suspended his retirement annuity benefits in July 2002. Carethers subsequently called OPM’s Office of Retirement Programs, identifying herself as the daughter. She requested that survivor annuity benefits application forms be sent to her mother, not disclosing that her mother actually was deceased. She then caused an application to be sent to OPM fraudulently requesting survivor annuity benefits for her mother; the application contained the forged signature of her mother. Because her mother was deceased, she was not eligible for survivor annuity benefits. Based on this application and unaware of the death of the defendant’s mother, OPM paid approximately $206,982 in survivor annuity benefits. These payments were directly deposited into a SunTrust Bank checking account solely in the name of the defendant’s parents.
From 2001 to 2010, Carethers used the fraudulently obtained payments that OPM sent after her mother’s death to buy items and services for herself and others.
In announcing the plea, U.S. Attorney Phillips and Acting Inspector General Vint expressed appreciation for the work performed by Special Agents and analysts from OPM’s Office of Inspector General. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Cruise Ship Employee Sentenced to 10 Years for Drug SmugglingRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Desrick Gordon (23, St. Vincent and the Grenadines) to 10 years in federal prison for conspiracy to possess with intent to distribute 5 kilograms or more of cocaine. The Court also ordered him to forfeit $53,369, which is traceable to proceeds of the offense. A jury found Gordon guilty on December 16, 2015.
According to evidence presented at trial, Gordon was part of a drug distribution ring that imported cocaine from Roatan, Honduras using cruise ship employees at several ports of call in the United States. Gordon, along with five other crewmen from Norwegian Cruise Line, received packages of cocaine from a source of supply in Honduras while the cruise ship was docked there. The packages ranged from 750 grams to a full kilogram of cocaine.
Once the ship had docked in Tampa, the crewmen gathered at a restaurant near the port to remove their secreted cocaine packages. They then met with two local drug traffickers, who had ties to the Honduran source of supply, to provide them with the packages of cocaine. The two local traffickers were stopped by law enforcement after leaving the Channelside District. Agents seized 10 packages of cocaine with a total weight of more than 7.5 kilograms. In addition, agents seized $53,369 from the crewmen.
“The strong sentencing in this case is the culmination of great investigative casework conducted by Homeland Security Investigations special agents and highlights our joint efforts with our many law enforcement partners to keep our communities safe by preventing criminals from transporting dangerous narcotics into our country,” said Susan L. McCormick, special agent in charge of HSI Tampa.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Gregory Nolan.
Convicted felon indicted on federal firearms chargeRead the Press Release
Evansville –United States Attorney Josh J. Minkler announced today that an Evansville man was indicted by a federal grand jury with being a felon in possession of a firearm. Jason E. Galloway, 38, was arrested by Evansville Police after being called to his former wife’s residence as a result of a domestic disturbance.
“Convicted felons have no right to carry a firearm in the state of Indiana,” said Minkler. “If someone chooses to willfully violate federal law, they will face serious consequences.”
According to a police report generated by the Evansville Police Department, police were called to the 1100 block of N. Main Street on January 21, 2016, on a domestic violence incident. When officers arrived, they spoke with Galloway’s former wife who stated Galloway had waived a gun around the house and threatened to shoot her. Officers found a stolen .22 caliber revolver in the house, loaded with eight rounds of ammunition. Galloway left before officers arrived but they found him behind a nearby gas station and placed him under arrest.
Galloway cannot legally possess a firearm because he has three felony convictions. The convictions include:
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Manufacturing methamphetamine, Henderson County, Kentucky, in 2000
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Criminal recklessness resulting in serious bodily injury, in Posey County, Indiana, 2010
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Battery by means of a deadly weapon, Vanderburgh County, Indiana, in 2013
This case was investigated by the Evansville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to Assistant United States Attorney Kyle M. Sawa, who is prosecuting this case for the government, Galloway could face up to 10 years imprisonment if convicted.
Galloway had his initial appearance before Magistrate Judge Matthew P. Brookman and was remains in the custody of the United States Marshal Service. He has been in custody since his January arrest.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Chicago Psychiatrist Who Took Kickbacks to Prescribe Mental Health Medication Sentenced to Nine Months in Federal PrisonRead the Press Release
CHICAGO — A Chicago psychiatrist was sentenced today to nine months in federal prison for accepting nearly $600,000 in fees and benefits from pharmaceutical companies in exchange for prescribing a medication to his patients.
DR. MICHAEL J. REINSTEIN prescribed the drug Clozapine to thousands of elderly and indigent patients in Chicago-area nursing homes and hospitals. In exchange for his efforts, the pharmaceutical companies provided Dr. Reinstein with consulting fees and entertainment expenses, including meals, tickets to sporting events, and all-expense-paid vacations. At one point in the early 2000s, Dr. Reinstein was the largest prescriber of the drug to Medicaid recipients in the United States.
Dr. Reinstein, 72, of Skokie, pleaded guilty last year to one count of violating the federal Medicare and Medicaid Anti-Kickback Statute. In addition to the nine-month sentence, U.S. District Judge Sharon Johnson Coleman also imposed forfeiture of $592,000, and ordered Dr. Reinstein to perform 120 hours of community service.
“Reinstein abused his position of public trust as a physician and took advantage of the faith and trust of his mentally ill patients in order to enrich himself,” Assistant U.S. Attorney Eric S. Pruitt argued in the government’s sentencing memorandum.
Clozapine is an anti-psychotic medication with potentially serious side effects, particularly for elderly patients. While Clozapine has been shown to be effective for treatment-resistant forms of schizophrenia, it is also known to cause a potentially deadly decrease in white blood cells, as well as seizures and inflammation of the heart muscle.
Dr. Reinstein has been a psychiatrist in the Chicago area since 1973, with an office in Chicago’s Uptown neighborhood. According to his plea agreement, he prescribed Clozaril, the brand-name version of Clozapine, long after less expensive, generic versions were available, because the manufacturer of Clozaril paid him thousands of dollars to promote the drug at speaking engagements.
After the deal with the brand-name manufacturer ended in 2003, Dr. Reinstein agreed to switch his patients to the generic version, but only after its manufacturers, Teva Pharmaceuticals USA Inc. and IVAX Pharmaceuticals LLC, agreed to pay him a consulting fee and finance a Clozapine research study performed by a Reinstein-affiliated entity. At Dr. Reinstein’s request, Teva also agreed to hire an individual whom Dr. Reinstein described as an important source of patient referrals. Between July 2006 and July 2011, Teva paid the individual approximately $112,000 to enter white blood cell data into a national Clozapine registry.
Reinstein previously agreed to pay the United States and the State of Illinois $3.79 million to settle a civil lawsuit. Teva and IVAX also paid the United States and the State of Illinois $27.6 million to settle civil allegations that they violated state and federal False Claims Acts.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in- Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General.
The government is represented by Mr. Pruitt.
Businessman Convicted of Making False Statements to Bank to Secure over $750,000 in FundingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that CHARLES RICHARD BARBER, age 65, of Jackson, Louisiana, pled guilty before U.S. District Judge John W. deGravelles to making false statements to a financial institution in order to secure over $750,000 in funding, in violation of Title 18, United States Code, Section 1014. As a result of his conviction, BARBER faces a term of imprisonment, a term of supervised release following imprisonment, a fine, a restitution order, and forfeiture of the proceeds of the fraud. The sentencing date has not yet been set.
During the guilty plea hearing, BARBER admitted to the following facts. In October 2014, BARBER worked for an entity that had an ownership interest in Hometown Credit of Jackson, a finance company that provided short-term loans to individuals. Hometown Credit was funded, in part, through a $750,235 line of credit with Highlands Bank. The collateral for the line of credit consisted of Hometown Credit’s loan portfolio. As a result, Highlands Bank had a vested interest in the value of that loan portfolio and required Hometown Credit to provide it with monthly reports about its loan portfolio as a condition for the line of credit.
To ensure continued access to the line of credit, BARBER admitted that he submitted false reports to Highlands Bank in order to hide the sharply declining value of Hometown Credit’s loan portfolio and thus ensure continued access to the line of credit. BARBER admitted further that his actions resulted in Highlands Bank losing approximately $590,000.
United States Attorney Green said: “Fraud against our banks, credit unions, and the financial industry threatens not just the financial institutions themselves, but also their customers, borrowers, employees, and the taxpayers. I commend our excellent partners with the FBI, the Louisiana Inspector General’s Office, and the Louisiana Office of Financial Institutions for their work on this important matter, along with the dedicated efforts of our prosecutors. Our office will continue to aggressively pursue such fraud regardless of its sophistication or complexity.”
This ongoing matter is being investigated by the Baton Rouge Resident Office of the Federal Bureau of Investigation and the Louisiana Inspector General’s Office, with the assistance of the Louisiana Office of Financial Institutions. It is being prosecuted by Assistant United States Attorneys René Salomon and Adam Ptashkin.
Broward Resident Convicted for his Participation in a Fraudulent Jamaica Based Lottery SchemeRead the Press Release
A Broward County resident pled guilty today for his role in a Jamaica based telemarketing fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Delany De-Leon Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Delroy Drummond, 26, of Broward County, pled guilty to conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Drummond is scheduled to be sentenced on May 31, 2016 at 1:15 p.m. by U.S. District Judge William P. Dimitrouleas. At sentencing, Drummond faces a maximum statutory sentence of up to twenty years in prison.
According to documents and information presented in Court, beginning in or about April 2015, Drummond’s co-conspirators contacted elderly victims in the United States and falsely informed them that they had won a lottery. These co-conspirators told victims they had to pay several thousand dollars in taxes and fees in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Drummond.
In September 2013, Drummond was contacted in Miami, Florida, by law enforcement regarding a package, which was sent through the mail, containing money from a victim of the fraudulent scheme. At that time, Drummond was confronted with the fact that he was participating in a lottery scheme and was warned by law enforcement to stop receiving money from victims of telemarketing fraud.
In April 2015, Drummond obtained money wired to him under a fictitious name from a victim who had been falsely told he/she had won a $2.5 million lottery prize. Drummond used fraudulent identification in order to receive these funds. In May 2015, Drummond obtained money wired to him under a fictitious name from another victim who was falsely informed he/she had won a lottery prize. Between April 2015 and December 2015, Drummond received numerous packages containing money via the United States Mail, Federal Express, and United Parcel Service from multiple victims located throughout the United States. As a result of the fraudulent scheme, the victims lost approximately $500,000.
Mr. Ferrer commended the investigative efforts of USPIS, Homeland Security Investigations, U.S. Marshal Service, Broward Sheriff’s Office Narcotics Interdiction Task Force and the Miami Dade Police Department Economic Crimes Unit. The case is being prosecuted by Assistant United States Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brothers Sentenced in Meat Fraud CaseRead the Press Release
Jalel Aossey, age 41, and his brother Yahya Nasser Aossey, age 46, both of Cedar Rapids, Iowa, the former co-owners of Midamar Corporation (Midamar) and ISA, Inc. (d/b/a Islamic Services of America, Inc.), were sentenced in federal district court in Cedar Rapids, Iowa, today for their roles in a scheme to defraud customers and consumers of meat products sold by Midamar and certified by ISA as meeting certain international halal standards. The corporate entities owned by the Aosseys, and previously by their father, William B. Aossey, who founded the businesses, were sentenced in related cases on February 25, 2016.
Jalel Aossey, former president of Midamar, previously pleaded guilty to one count of conspiring to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud.
Jalel Aossey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to serve 12 months and one day imprisonment and fined $30,000. In addition, he was ordered to pay a special assessment of $100. Aossey will be required to serve a three-year term of supervised release after the prison term and to comply with the terms of a separate consent decree entered into with the USDA Food Safety Inspection Service. As part of that agreement and his plea agreement, Aossey was required to divest his interest in Midamar and to no longer be associated with the management or operations of Midamar.
Yahya Aossey previously pleaded guilty as a responsible corporate officer to two counts of selling, transporting, and offering for sale and transportation in commerce, meat and meat food products that were misbranded at the time of sale or transportation. As part of a plea agreement, prosecution on a conspiracy charge was deferred for a period of five years, subject to compliance with the terms of a pretrial diversion agreement.
Yahya Aossey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to serve a three year term of probation and fined $5,000. In addition, he was ordered to pay a special assessment of $50. As part of his conditions of probation, Aossey was ordered to comply with the terms of a separate consent decree entered into with the USDA Food Safety Inspection Service. As part of the consent decree and his plea agreement, Aossey will be permitted to continue as the owner and operator of Midamar. The consent decree also imposes several requirements on Midamar regarding corrective actions to guard against future violations.
William B. Aossey was previously sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 24 months imprisonment and fined $60,000. Aossey was also ordered to forfeit $184,983 representing proceeds of the fraud. In addition, he was ordered to pay costs of prosecution of $16,824 and a special assessment of $1,500.
Midamar was previously sentenced to pay a fine of $20,000 and ordered to forfeit $600,000. Midamar was also placed on probation for five years. As a special condition of probation, Midamar will be required to abide by all terms of a consent decree entered into with the USDA Food Safety Inspection Service. The consent decree requires Midamar to take a variety of corrective actions and to remove certain corporate officials, including Jalel Aossey and William B. Aossey, from the business. Midamar was also ordered to pay a special assessment of $400.
ISA was previously sentenced to pay a fine $60,000 and ordered to pay a special assessment of $400. ISA was also ordered to forfeit $600,000. The forfeiture judgment was ordered joint and several with Midamar. ISA must also abide by a 5 year term of probation.
“The United States Attorney’s Office, in conjunction with our law enforcement partners, is dedicated to curbing business fraud wherever it’s found,” said United States Attorney Kevin W. Techau following sentencing. “The public has a right to expect that domestic food products will be properly labeled and distributed in accordance with law. That was not done in this case. We will continue to pursue those who lie, cheat and steal from the public.”
“IRS Criminal Investigations is committed to unraveling complex financial transactions and schemes of this nature to assist our law enforcement partners,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigations. “The proceeds of illegal activity are used as fuel to continue their criminal conduct.”
Special Agent-in-Charge, Anthony Mohatt, USDA, Office of Inspector General Investigations, Midwest Region stated: “We greatly appreciate the efforts of the United States Attorney’s Office, and our investigative partners who worked tirelessly to bring to justice the corporations and individuals who engaged in a blatant, long-term pattern of activities designed to circumvent USDA regulations for financial gain. The results of this investigation highlight our agencies goal to strengthen USDA’s ability to implement and improve safety and security measures to protect the public health.”
The cases were prosecuted by Assistant United States Attorneys Richard L. Murphy and Timothy L. Vavricek and investigated by the United States Department of Agriculture Office of Inspector General Investigations and Internal Revenue Service Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are: 14-CR-00138-LRR (Jalel and Yahya Aossey); 14-CR-00116-LRR (William B. Aossey, Jr.); 14-CR-00138-LRR (Midamar & ISA).
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Armed Robber Sentenced to over 11 Years in Prison for Robbing Three Towson Businesses in a WeekRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Elbert Darell Crump, age 46, of Towson, Maryland, today to 135 months in prison followed by three years of supervised release for robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on January 14, 2015 Crump entered the Dollar Tree on Joppa Road in Towson, wearing a face mask. Crump pointed a semi-automatic handgun at a cashier and demanded money. Crump took cash out of the register drawer, a dollar from a nearby customer, and fled.
On January 20, 2015, Crump entered the Gino’s Burgers and Chicken Restaurant on LaSalle Road in Towson. Crump produced a firearm and demanded money from the employees. When the manager/employee had difficulty opening a cash register, Crump struck the manager in the head with the firearm, knocking him to the ground. Another employee helped the manager open the cash registers and Crump took the cash. A video recording shows Crump pointing the firearm in the direction of some of the customers as well as the employees.
The next day, Crump entered the Toys ‘R Us store on Putty Hill Avenue in Towson, wearing a face mask. Crump pointed a gun at a cashier and demanded money. The cashier ran out the front door. Crump pointed his gun at another employee, forcing the employee to open eight cash registers and put the cash into a bag. During this time, several customers and employees called 911. Police from Baltimore County responded quickly and surrounded the store. Several customers who were inside fled the store and were moved to safety by the police. Crump attempted to leave by the front and then the back of the store, but returned inside once he saw the police outside.
Baltimore County tactical officers and hostage negotiators arrived. Police were advised by fleeing customers that Crump was armed and that customers remained inside. Crump asked two customers to help him hide and handed them about $400. Crump hid in a large box on a shelf. The customers who received the money left the store, told police where Crump was hiding and gave the police the money. Tactical officers and canine officers subsequently entered the store and located Crump, hiding in the box on the shelf. A 24 hour search of the store took place before the .380 caliber handgun was located in the baby section inside a bag with $1,650 taken by Crump from all of the registers.
Video recordings of all three robberies identified Crump as the robber. The firearm was registered to Crump’s girlfriend with whom Crump was staying. Clothes worn by Crump during the robberies were found at their residence.
Crump had previously been convicted of at least one crime of violence and one drug offense.
United States Attorney Rod J. Rosenstein commended the Baltimore Police Department, FBI and Baltimore County State’s Attorney=s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and James A. Crowell IV, who prosecuted the case.
Andes Woman Indicted for Social Security FraudRead the Press Release
BINGHAMTON, NEW YORK – Deborah E. Cottrell, age 65, of Andes, New York, was arraigned yesterday on an indictment accusing her of concealing her marriage and making false statements to the Social Security Administration (SSA) in order to obtain Survivor’s Insurance Benefits.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the SSA Office of the Inspector General.
The indictment alleges that Cottrell began to collect Survivor’s Insurance Benefits in 1998 and remarried in 2006, which disqualified her from receiving benefits. The indictment alleges that Cottrell continued to receive benefits following her remarriage and in July 2014, mailed a form to the SSA falsely stating that she had not remarried.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Cottrell faces up to 20 years of imprisonment, 2 years of post-imprisonment supervised release and a $250,000 fine, if convicted on all counts of the indictment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Cottrell was arraigned yesterday in Binghamton before U.S. Magistrate Judge Therese Wiley Dancks. She was released on a bond pending a trial scheduled for May 9, 2016 before U.S. District Judge Thomas J. McAvoy.
This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Alton Man Sentenced in Craigslist Counterfeit ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that Tony Young Jr., 21, of Alton, Illinois, was sentenced in the U.S. District Court in East Saint Louis, Illinois, on the charge of Conspiracy to Manufacture, Possess and Pass Counterfeit United States Currency. The district court sentenced Young to 19 months in federal prison, to be followed by 3 years of supervised release.
Young pled guilty to the charge in United States District Court on November 18, 2015. During his plea, he admitted that he along with several others, had engaged in an agreement to manufacture counterfeit United States Currency and then use the currency to buy vehicles. Once in possession of the vehicles they would then resell them for genuine United States currency.
During August of 2013, the group contacted a person in Sandoval, Illinois, who had listed his vehicle for sale on Craigslist. Young, along with the other conspirators then met with the seller in Sandoval, Illinois and purchased the vehicle for $2,400 in counterfeit $100 Federal Reserve Notes. Young and others involved in the conspiracy were arrested a short time after the fraudulent purchase by law enforcement from Carlyle, Clinton County and Sandoval.
The investigation in this case was conducted by the Carlyle and Sandoval Police Departments, the Clinton County Sheriff’s Office and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Additional Federal Child Exploitation Charges for Former Live Oak Police SergeantRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that a federal grand jury has returned a superseding indictment against Kyle Adam Kirby (35, Live Oak) charging him with production, attempted production, and possession of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison on each of the production and attempted production charges, and up to 30 years’ imprisonment on each of the possession charges. Kirby was arrested on October 27, 2015, and is being detained pending his trial. His arraignment on the superseding indictment is scheduled for March 24, 2016.
According to court documents, FBI agents and other law enforcement officers executed a federal search warrant at Kirby’s residence as the result of an online child pornography investigation. That same morning, the Live Oak police chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of the patrol car computer used by Kirby revealed that it contained images depicting minor children engaged in sexually explicit conduct.
A superseding indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Abingdon Man Sentenced on Methamphetamine ChargesRead the Press Release
ABINGDON, VIRGINIA – An Abingdon man was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon on federal drug conspiracy charges, United States Attorney John P. Fishwick Jr. announced today.
Michael Bowman, 59, of Abingdon, Va., previously pled guilty to one count of conspiracy to distribute methamphetamine. Yesterday in District Court, Bowman was sentenced to 240 months in federal prison and three years of supervised release thereafter. The defendant was also ordered to forfeit real property, multiple firearms, and ammunition.
“Ice methamphetamine is particularly addictive and deadly form of methamphetamine which is destroying communities and ruining lives,” United States Attorney John P. Fishwick said today. “Today’s sentence sends the message that we will not tolerate these substances coming into our communities and will continue to work with our law enforcement partners to put those who deal this deadly drug in federal prison.”
According to evidence presented to the District Court, Bowman was the head of a large, “ice” methamphetamine conspiracy that operated in Southwest Virginia, Eastern Kentucky and Tennessee. In approximately 2013-2014, Bowman, and others, regularly received large supplies of ice methamphetamine from sources of supply in the Southwest United States.
Bowman and his co-conspirators would typically transport this ice methamphetamine from the Southwest United States to Virginia and Kentucky via interstate highways, coordinating among themselves to avoid law enforcement drug interdiction efforts along the way. Once in Virginia, Bowman would sell the drug to others, who would further distribute it for sale to end users.
The investigation of the case was conducted by the Bristol Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bristol Office of the Drug Enforcement Administration, the Virginia State Police, the Sheriff's Offices of Washington County, Russell County, Tazewell County, and Smyth County, the Commonwealth's Attorney's Offices of Russell County and Tazewell County and the police departments of Abingdon and Lebanon. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Thursday 10 March 2016
Winnebago Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Deborah R. Gilg announced that Duane Rouillard, age 27, of Winnebago, Nebraska, was sentenced for his conviction for assaulting a federal officer. Senior United States District Court Judge Joseph F. Bataillon sentenced Rouillard to 24 months of imprisonment to be followed by three years of supervised release.
On May 11, 2015, an Officer with the BIA Office of Justice Services responded to a domestic disturbance call at Rouillard’s residence. When the Officer arrived he found Rouillard’s mother and cousin attempting to restrain Rouillard to prevent him from taking any further violent actions. When the officer attempted to handcuff Rouillard, Rouillard spat on the Officer’s face and neck. This was the fifth time Rouillard has been convicted of assaulting a law enforcement officer.
This case was investigated by the Bureau of Indian Affairs.
Westbank Gang Members Sentenced for Conspiring to Sell Crack Cocaine and Firearms PossessionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that three members of a Westbank gang associated with the Harvey Hustlers were sentenced today after previously pleading guilty to violations of the Federal Controlled Substances Act and the Federal Firearms Act.
U.S. District Judge Jane Triche Milazzo sentenced GLEN HOUSTON and JARRIN HARRIS, both age 22, were each sentenced to ten years in prison for conspiring to distribute more than 280 grams of crack cocaine and possess firearms in furtherance of drug trafficking. BRITTANY CONNER, age 22, was sentenced to four years of probation for conspiring to distribute crack cocaine.
This prosecution is the product of an ongoing investigation into the drug trafficking by this and other Westbank gangs. It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigation’s New Orleans Gang Taskforce, the Jefferson Parish District Attorney’s Office, and members of the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Myles Ranier was in charge of the prosecution.
Westbank Drug Dealer SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANDRE ADDISON, age 24, of Avondale, was sentenced today after previously pleading guilty to conspiracy to distribute cocaine base (“crack”).
U.S. District Judge Lance M. Africk sentenced ADDISON to 87 months in prison, followed by 5 years of supervised release, and a $100 special assessment.
According to court documents, ADDISON pled guilty to being a member of a twelve defendant offshoot of the larger Harvey Hustlers group that was involved in the distribution of heroin and crack cocaine in the Avondale and Waggaman areas of Jefferson Parish. ADDISON admitted to acquiring ounce quantities of powder cocaine and then using members of the conspiracy to cook that cocaine into crack, which would then be sold on the streets of Jefferson Parish. ADDISON’s co-conspirators have admitted their participation in multiple murders and shootings in Jefferson Parish.
This case is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the Harvey Hustler gang and its various offshoots on the West Bank. It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, Special Agents of the Federal Bureau of Investigation’s New Orleans Gang Taskforce, the Jefferson Parish District Attorney’s Office, ,and officers of the Jefferson Parish Sheriff’s Office.
Assistant United States Attorneys Greg Kennedy, David Haller, and Myles Ranier and Special Assistant United States Attorney Collin Sims, who is a former Assistant United States Attorney and the Criminal Chief at the St. Tammany Parish District Attorney’s Office, are in charge of the prosecution.
Weslaco Man Heads to Prison for Trafficking MarijuanaRead the Press Release
LAREDO, Texas – Santiago Martinez, 39, of Weslaco, has been ordered to prison for 10 years following his conviction of conspiracy to possess with the intent to distribute in excess of 1,000 kilograms of marijuana, announced United States Attorney Kenneth Magidson. Martinez pleaded guilty April 3, 2014.
Today, U.S. District Judge Marina Garcia Marmolejo, who accepted the guilty plea, handed Martinez a 120-month sentence to be immediately followed by five years of supervised release. The court also ordered that the judgment reflect that an order of forfeiture was entered against Martinez in the amount of $11,555,000 which was based on the amount of marijuana transported by the organization during the span of the conspiracy.
A Laredo grand jury returned an indictment Dec. 3, 2013, which alleged Martinez acted as a leader and organizer within a drug trafficking organization that purchased and transported marijuana from the United States-Mexico border to regional distributors in Memphis, Tenn., and Tampa, Fla.
According to court documents, the organization used “low boy” trailers and recreational camping trailers with hidden compartments to transport the marijuana, in 300 to 500 kilogram loads, twice per month. Proceeds from the sale and transportation of this marijuana were collected and sent back to South Texas. These proceeds were placed in hidden compartments in tractor trailers or recreational camping trailers or were deposited into numerous bank accounts.
Since 2001, law enforcement has seized more than 3,500 kilograms of marijuana and more than $1.3 million tied to this drug trafficking organization. The largest seizure of marijuana occurred on Jan. 7, 2011, at which time two tractors, hauling trailers, arrived approximately one hour apart at the U.S. Border Patrol checkpoint on Highway 1017 east of Hebbronville. Inside hidden compartments in the trailers, agents found more than a 1000 kilograms of marijuana. One tractor was headed to Memphis and the other to Tampa.
The largest cash seizure occurred on Aug. 4, 2012, in Florida when law enforcement officers found seven bundles of money, totaling $831,539 in a lead-lined hidden compartment in a camping trailer.
Martinez admitted he purchased marijuana and arranged for its transportation and that a number of the vehicles used by this organization were titled in his name. Martinez further admitted he conspired to move more than 10,000 kilograms of marijuana.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The case is being investigated by the Drug Enforcement Administration with the assistance of the FBI. Former Assistant United States Attorney (AUSA) Elizabeth R. Rabe prosecuted the case. AUSA Toni L. Trevino handled the sentencing today.
Virginia Music Volunteer Convicted of Production of Child PornographyRead the Press Release
A Virginia man who served as a volunteer with the music program at Grace E. Metz Middle School in Manassas, Virginia, was found guilty today by a federal jury of four counts of production of child pornography, one count of attempted coercion/enticement of a minor, one count of distribution of child pornography and two counts of receipt of child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., and Chief Douglas Keen of the Manassas City Police Department made the announcement.
According to evidence presented at trial, David Alexander Battle II, 24, of Manassas, used his home computer to share images of child sexual exploitation via webcam on a chat website in April 2015. Battle also posed as a minor girl on another chat platform and chatted with minor boys, including two boys he personally knew, coercing and enticing them to send him sexually explicit images of themselves. The trial evidence also showed Battle’s laptop contained gigabytes of child sexual exploitation files.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jay Prabhu of the Eastern District of Virginia are prosecuting the case. HSI and the Manassas City Police Department investigated the case, with assistance from the Herndon, Virginia, Police Department and the Northern Virginia/Washington, D.C., Internet Crimes Against Children Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Files Suit Against California Telemarketer to Halt Unlawful Robocalls Promoting Solar Panel SalesRead the Press Release
The Department of Justice filed a civil complaint in the U.S. District Court for the Central District of California, to halt a telemarketing campaign that allegedly resulted in over a million illegal phone calls to consumers who had placed their phone numbers on the Do Not Call Registry, the Department of Justice announced today.
The complaint charges that KFJ Marketing, Sunlight Solar Leads LLC, Go Green Education and the owner of those companies, Francisco Salvat, violated the Telemarketing Sales Rule by operating a telemarketing campaign that delivered pre-recorded “robocall” messages warning consumers about a purported looming “14 percent increase” in their energy bill. The calls invited consumers to “press one” to lower their electric bill. Consumers who did were connected with one of the defendants’ employees, who asked about the consumer’s interest in solar panels.
If the consumer expressed interest in solar panels, the telemarketer scheduled an appointment with a private solar installation company and sold the consumer’s information to that company as a customer lead. When consumers asked the defendants not to call them again, the complaint alleges their requests were often ignored.
The complaint alleges that the defendants violated federal law by placing 1.3 million calls to phone numbers on the Do Not Call Registry and by failing to transmit accurate caller ID information.
“Federal law protects the privacy interests of American consumers by prohibiting calls made to numbers on the national Do Not Call Registry and otherwise limiting calls made by telemarketers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the Federal Trade Commission (FTC) to ensure entities like those named in today’s lawsuit are penalized when they make unwanted and unlawful phone calls.”
“Mr. Salvat’s companies ignored the Do Not Call Registry and made illegal robocalls,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Breaking the law isn’t a great way for a company to introduce itself to potential customers.”
The matter was investigated by the FTC and referred to the Department of Justice’s Consumer Protection Branch after the FTC determined it had reason to believe the defendants’ conduct was violating the law and that a proceeding would be in the public interest. The complaint seeks civil penalties as well as injunctive relief.
The matter is being handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, with assistance from Sarah Schroeder and Sylvia Kundig from the FTC.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by preponderance of the evidence.
Two men appear on Federal heroin charges in CharlestonRead the Press Release
CHARLESTON, W.Va. – Two men appeared in federal court today on heroin charges, announced Acting United States Attorney Carol Casto.
Timothy A. Johnson, 46, of Charleston, was sentenced to five years in federal prison for possession with intent to distribute heroin. Johnson previously pleaded guilty and admitted that on April 23, 2015, law enforcement seized 200 grams of heroin, 384 grams of cocaine, 8 grams of crack, and over $29,000 at his Charleston residence. The seized currency included over $2,000 in pre-recorded buy money used by law enforcement to purchase heroin from a drug dealer that Johnson supplied. Law enforcement also recovered a loaded handgun, a .40 caliber pistol, from his residence.
In a separate drug prosecution, Jerome Anthony Smith, 41, of Williamson, pleaded guilty to distribution of heroin. He admitted that from May to August 2014, during the course of several controlled purchases, he distributed both heroin and crack to a confidential informant working with law enforcement. The drug deals took place in the Williamson area. Smith faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 9, 2016.
The investigation of Smith was conducted by the U.S. Route 119 Drug Task Force and the Mingo County Sheriff’s Office. The Metropolitan Drug Enforcement Network Team conducted the investigation of Johnson. Assistant United States Attorney Jennifer Rada Herrald handled the prosecutions. The defendants appeared before United States District Judge Thomas E. Johnston.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Men and a Woman Charged with Robbing Stilwell, Kan., BankRead the Press Release
KANSAS CITY, KAN. - Two men and a woman were charged here today in a federal criminal complaint alleging they robbed a bank, engaged in a high-speed chase with a 19-month-old child in their car, and fired at police officers who were pursuing them, U.S. Attorney Barry Grissom said.
Jacob L. Smith, 18, Kansas City, Kan.; Gary Jordan, 39, Kansas City, Kan.; and Danille Morris, 26, Kansas City, Kan.; are charged with one count of bank robbery and one count of brandishing firearms during the robbery
A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges Jordan and Smith were armed with handguns on March 9 when they entered the First National Bank at 7460 W. 199th Street in Stilwell, Kan. Morris and her 19-month-old daughter waited outside in the getaway car. Morris had helped to case the bank before the robbery.
Smith and Jordan held the tellers at gunpoint before fleeing with cash stuffed in a backpack. Jordan took the wheel of the getaway car. During the next 25 minutes, the robbers were pursued by the Kansas Highway Patrol, the Leawood Police Department and other law enforcement agencies as they fled across the Kansas/Missouri state line. During the chase, Smith fired at officers from the car. After the car overturned on a sharp turn, the defendants were arrested. Throughout the chase, the child was in a car seat fastened to the back seat of the defendants’ car.
If convicted, the defendants face a maximum penalty of 25 years and a fine up to $250,000 on the bank robbery charge, and a penalty of not less than seven years and not more than life on the brandishing charge. Agencies assisting in the investigation include the FBI, the Johnson County Sheriff’s Office, the Kansas Highway Patrol, the Leawood Police Department and the Kansas City Police Department. Assistant U.S. Attorney Sheri Catania is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Two Former Rabobank Traders Sentenced to Prison for Manipulating U.S. Dollar and Japanese Yen LIBOR Interest RatesRead the Press Release
Two former derivatives traders at Rabobank Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) – including the bank’s former global head of liquidity and finance in London – were sentenced to prison today for manipulating the London Interbank Offered Rates (LIBOR) for the U.S. Dollar (USD) and Japanese Yen (JPY), benchmark interest rates to which trillions of dollars in interest rate contracts were tied.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Anthony Allen, 44, of Hertsfordshire, England, the bank’s former global head of liquidity and finance in London, was sentenced to 24 months in prison by U.S. District Judge Jed S. Rakoff of the Southern District of New York. Anthony Conti, 46, of Essex, England, a former senior trader on the bank’s money markets desk in London, was sentenced to 12 months and one day in prison. A federal jury convicted the defendants on Nov. 5, 2015, after a four-week trial. Allen was found guilty of one count of conspiracy to commit wire fraud and bank fraud and 18 counts of wire fraud. Conti was found guilty of one count of conspiracy to commit wire fraud and bank fraud and eight counts of wire fraud.
“Allen and Conti were entrusted to set LIBOR, a critically important interest rate benchmark,” said Assistant Attorney General Caldwell. “Their scheme to manipulate this rate to increase their bank's profits undermined the integrity of our financial markets and the public's confidence in the fairness of the financial system. This case demonstrates our commitment to work with domestic and foreign law enforcement authorities and regulators to hold financial criminals responsible for their crimes and ensure the integrity of the marketplace for investors worldwide.”
“Large banks, like other companies, only conspire and commit fraud through their executives,” said Assistant Attorney General Baer. “The Department of Justice will continue to hold those executives accountable for their role in corporate wrongdoing. Working with our partners at the Criminal Division and FBI, the Antitrust Division will continue to target fraud and collusion to ensure that markets function as they should – freely, fairly and competitively.”
“The prison sentences imposed today underscore the serious nature and extent of manipulation that Conti and Allen undertook as part of their scheme to defraud financial institutions and investors,” said Assistant Director in Charge Abbate. “The investigative and prosecutorial team that investigated and tried this case in court are to be commended for their dedicated and tireless work in furtherance of uncovering the LIBOR-related fraud and holding accountable those who committed these crimes.”
LIBOR is the primary benchmark for short term interest rates for several currencies around the world and is used as a reference rate for many financial products, including interest rate contracts, mortgages, credit cards and student loans. At the time relevant to the charges, LIBOR was calculated for 10 currencies at 15 maturities, ranging from overnight to one year, and was published by the British Bankers’ Association (BBA), a London-based trade association, based on submissions from a panel of 16 banks, including Rabobank.
The evidence at trial showed that the defendants actively participated in a scheme to rig the USD and JPY LIBORs to benefit their own trading positions, as well as those of their colleagues. Specifically, between 2005 and 2009, the evidence showed that Allen oversaw a system in which Rabobank employees who traded LIBOR-linked derivatives made improper requests to the employees who submitted Rabobank’s LIBOR contributions to the BBA. Conti was the primary USD LIBOR submitter and Paul Robson, who previously pleaded guilty to the conspiracy charge, was the primary JPY LIBOR submitter.
In addition to Allen, Conti and Robson, two other former Rabobank employees have been convicted in the Rabobank LIBOR investigation. Lee Stewart and Takayuki Yagami each pleaded guilty to one count of conspiracy in connection with their roles in the scheme. Two other former Rabobank employees, Tetsuya Motomura, 43, of Tokyo, and Paul Thompson, 50, of Dalkeith, Australia, have also been charged and are awaiting trial. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rabobank entered into a deferred prosecution agreement with the department on Oct. 29, 2013, and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
The FBI investigated the case. Senior Litigation Counsel Carol Sipperly and Assistant Chief Brian Young of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division prosecuted the case. The Criminal Division’s Office of International Affairs and Deputy Chief Daniel Braun and Assistant Chief Brent Wible of the Criminal Division’s Fraud Section are thanked for their substantial assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, played a major role in the LIBOR investigation. The Securities and Exchange Commission also played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Taylor County, Kentucky Man Sentenced to 30 Months in Prison for Multiple Counts of Firearm ViolationsRead the Press Release
District Judge imposes the maximum sentence
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. today announced the sentencing of a Taylor County, Kentucky man this week by United States District Judge Greg N. Stivers, to 30 months in prison, the maximum sentence for the offenses charged under the federal sentencing guidelines, for multiple counts of firearm violations.
Christopher Cox, of Campbellsville, previously pleaded guilty to an eight count indictment on November 23, 2015. Cox pleaded guilty to four charges of being a felon in possession of a firearm and four charges of possession of a firearm by a person convicted of a misdemeanor crime of domestic violence.
According to information presented in court to support the felony charges, Cox was previously convicted on June 4, 2002, in Taylor Circuit Court, of the felony offense of possession of marijuana while in possession of a firearm. On January 13, 2009, in Madison County District Court, located in Richmond, Kentucky, Cox was convicted of assault in the 4th degree (domestic violence). Cox pleaded guilty to an altercation with his then girlfriend in which he had attempted to choke her while driving a vehicle. The Police Report noted “visible red marks” on the woman’s neck.
Cox came to the attention of law enforcement when he purchased a 9mm pistol from a Campbellsville shop without filling out the proper paperwork (Form 4473). The shop owner notified law enforcement who noticed Cox had a previous felony conviction. Further, around the same time of the purchase of the pistol, law enforcement uncovered that Cox had pawned three long guns at a pawn shop in Campbellsville. Those firearms were a Mossberg 12 gauge shotgun, a Mossberg 20 gauge shotgun, and a Remington bolt-action rifle. Cox had purchased the guns from a store in Lexington using a stolen social security number.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF) in connection with the Campbellsville Police Department.
Sunbury Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
COLUMBUS, Ohio – Mark W. Wolfe, 50, of Sunbury, Ohio, pleaded guilty in U.S. District Court to distribution of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Westerville Police Chief Joseph Morbitzer announced the plea entered into today before U.S. Magistrate Judge Terence P. Kemp.
According to court documents, undercover investigators observed files containing child pornography being shared through an IP address belonging to Wolfe. During a search warrant executed on July 31 at Wolfe’s residence, investigators discovered a laptop containing approximately 486 videos and 203 images of child pornography. The files were located in several folders on the computer under the user name “Mark.” Some of the videos showed children as young as eight-to-10 months old being sexually abused.
Further forensic analysis of the computer revealed Skype chat messages between Wolfe and several other individuals. In these conversations, Wolfe allegedly distributed child pornography files and claimed to have previously engaged in sex acts with minors and stated that his favorite age is five to ten years old.
Wolfe was charged by indictment in September 2015. He pleaded guilty to one count of distribution of child pornography, which is punishable by at least five years and up to 20 years in prison.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, Reynoldsburg Police Department, Powell Police Department and Belmont County Sheriff’s Office, as well as Assistant U.S. Attorney Heather A. Hill, who is prosecuting the case.
St. Louis Area Man Indicted on Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – Adam Bernaix of St. Louis, Missouri, was arrested today on an indictment charging him with mail fraud and money laundering in connection with a kickback scheme he is accused of operating from June 2012 until February 2015.
According to the indictment, while a project manager for Albert Arno, Inc., a local commercial HVAC contractor, Bernaix had authority to select subcontractors and authorize their bills to Albert Arno. Bernaix decided to exploit that authority and siphon off funds from his employer through a company he organized through a straw party.
The company, Trident Management Services, billed subcontractors of Albert Arno for “management services.” In order to account for Trident’s bills, Bernaix increased the subcontractors’ invoices to Albert Arno enough to provide extra money to pay Trident’s bills. In truth, Trident provided minimal services to its clients and its bills were only paid by the subcontractors to satisfy Bernaix and keep business flowing to the subcontractors from Albert Arno.
During the nearly three-year period of the fraud scheme, Trident Management Services made more than $350,000 from Albert Arno subcontractors, which proceeds Bernaix is alleged to have divided between himself and the nominal founder and sole officer of Trident Management Services.
If convicted, Bernaix faces up to 20 years imprisonment on each of two mail fraud counts and up to 10 years imprisonment on each of two money laundering counts. Additionally, Bernaix faces up to $250,000 in fines per count and restitution for the victims will be sought pursuant to the Mandatory Victims Restitution Act.
The case was investigated by the Federal Bureau of Investigation, U.S. Postal Inspection Service and IRS Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Sixteen Latin King Gang Members and Associates Arrested for Narcotics Trafficking in Long Beach, New YorkRead the Press Release
A four-count indictment was unsealed today in United States District Court for the Eastern District of New York charging sixteen defendants with four narcotics trafficking conspiracies, including conspiracies to possess with intent to distribute cocaine, cocaine base (crack cocaine), ethylone (molly), and marijuana. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Anne Y. Shields at the federal courthouse in Central Islip.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA); and Michael Tangney, Commissioner, Long Beach Police Department (LBPD).
“This indictment should serve as notice to all gang members - we will not tolerate the flooding of our streets with illegal drugs. We are committed to rooting out all drug trafficking and gang activity on Long Island,” stated United States Attorney Capers. Mr. Capers thanked the FBI, DEA Long Island Drug Task Force and LBPD for their assistance with the government’s investigation.
“Today, 16 members and associates of the Latin Kings Gang are facing charges related to drug trafficking in parts of Long Island. When criminal operatives and gangs bring in illegal drugs into our neighborhoods, they also bring violence, turf wars and other criminal activity. The FBI will continue to work with our law enforcement partners to dismantle gang activity and keep our communities safe,” said FBI Assistant Director-in-Charge Diego Rodriguez.
DEA Special Agent-in-Charge Hunt stated, “Today’s arrests have dismantled an alleged drug gang that preyed upon the Long Beach community. The indictment charges that this organization illegally distributed cocaine, crack cocaine, ethylone and marijuana; all of which furthered crime, addiction, and violence. Law enforcement worked collaboratively to reclaim this neighborhood for the law abiding citizens who deserve to live without intimidation, fear, and drug trafficking.”
LBPD Commissioner Tangney stated, “The Long Beach Police Department is very appreciative of the assistance the FBI and DEA provided to the LBPD in this joint operation. Removing these dangerous individuals from our streets makes this community that much safer. This joint investigation was very successful and demonstrates that when federal and local law enforcement work together, great results are achieved.”
As alleged in the government’s detention memorandum, the indictment is the product of a two-year investigation during which law enforcement identified the most prolific narcotics traffickers in the Long Beach area, including numerous members and associates of the Latin Kings street gang. Court-authorization was then obtained to intercept telephone communications between the defendants, all of whom were intercepted on multiple occasions engaging in narcotics trafficking activities. The charged conspiracies involved over 50 kilograms of cocaine, five kilograms of crack cocaine, two kilograms of molly, and 500 pounds of marijuana.
If convicted of the charges in the indictment, Amparo, A. Andujar, R. Andujar, Cerda, Cobb, Curry, Diggs, Fernandez, Ojedis, Ramirez, and Rupay face a maximum of life imprisonment. Ayala, Collins, Vanroten, and Wilson face a maximum of 40 years’ imprisonment, and Labella faces a maximum of 20 years’ imprisonment. The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the office’s Long Island Criminal Division. Assistant United States Attorneys Lara Treinis Gatz, Mark E. Misorek, and Grace M. Cucchissi are in charge of the prosecution.
The Defendants:
Jose Giovanny Amparo
Age: 46
Bronx, New YorkAmanda Andujar
Age: 26
Baldwin, New YorkRoxanne Andujar
Age: 36
Baldwin, New YorkJordan Ayala
Age: 20
Long Beach, New YorkFernando Cerda
Age: 38
Long Beach, New YorkTysaun Cobb
Age: 24
Hempstead, New YorkArthur Collins
Age: 38
Island Park, New YorkTravis Curry
Age: 37
Long Beach, New YorkSean Diggs
Age: 28
Long Beach, New YorkNelson Fernandez
Age: 35
Long Beach, New YorkFrank Labella
Age: 35
Oceanside, New YorkDaniel Ojedis
Age: 37
Baldwin, New YorkAnthony Ramirez
Age: 29
Hempstead, New YorkRonald Rupay
Age: 35
Long Beach, New YorkGregory Vanroten
Age: 38
Baldwin, New YorkSly Wilson
Age: 30
Long Beach, New YorkShipping Companies and Engineers Indicted for Concealing Oil PollutionRead the Press Release
A grand jury in Seattle has indicted two shipping companies and two engineers for crimes related to the illegal discharge of oily wastewater from a cargo ship known as the M/V Gallia Graeca, announced U.S. Attorney Annette L. Hayes. The ship’s operator, ANGELAKOS (HELLAS) S.A., its owner, GALLIA GREACA SHIPPING, LTD, and engineers KONSTANTINOS CHRYSOVERGIS and TRYFON ANGELOU are scheduled to be arraigned on the indictment on March 24, 2016. ANGELAKOS (HELLAS) S.A. is a Panama company. GALLIA GREACA SHIPPING, LTD is a Cyprus company.
According to the indictment, the M/V Gallia Graeca travelled from China to Seattle in October 2015. During the voyage, a pollution-control device known as an oil water separator was inoperable, resulting in the accumulation of untreated oily water. On October 16, 26 and 27, 2015, the defendants operated the equipment in a way that bypassed safeguards that prevent the discharge of oily water, resulting in the discharge of more than 5,000 gallons of contaminated water. The indictment alleges that the defendants concealed these incidents from the Coast Guard by making false statements to inspectors, and making false statements and omissions in the ship’s record book. When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly even though it was not.
The two engineers and the two companies operating the ship are charged with Falsification of Records in a Federal Investigation, which is punishable by up to 20 years in prison, with Concealment of Material Information from the United States, which is punishable by up to 10 years in prison, and with violating the Act to Prevent Pollution from Ships, which is punishable by up to five years of imprisonment. Each count of conviction is also punishable by a $500,000 fine.
The charges contained in the indictment are only allegations. A person or entity is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs and by Special Assistant Attorney Stephen Bor. Mr. Bor is an attorney with the United States Coast Guard specially appointed to prosecute criminal cases in federal court.
The case is being investigated by the U.S. Coast Guard and the Environmental Protection Agency Criminal Investigation Division.
Shipping Companies Fined for Falsifying Records Under Defense ContractRead the Press Release
Farrell Lines, Incorporated (Farrell) and DAMCO USA, Inc. (Damco) have paid to the United States of America three million six hundred fifty nine thousand five hundred dollars ($3,659,500.00) in civil penalties regarding Farrell and Damco’s failure to comply with certain terms of its contract with the United States Transportation Command (USTRANSCOM), the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
"The determined federal investigators and the attorneys in my office will continue to strive to ensure that dollars paid from the public fund are properly accounted for and that value is received. The United States Attorney’s Office stands ready to bring proper relief, either criminal or civil, whenever necessary, to make that a fact." noted Acting United States Attorney Porter.
Under Farrell’s contract with USTRANSCOM, it was required to perform international door-to-door and/or port-to-port transportation services to move Department of Defense (DoD) and other Government approved cargo into and out of Afghanistan via multiple modes of transportation (air, sea, and land). Farrell subcontracted its work on the contract to its affiliate, Damco. The price of the contract was based almost exclusively on the weight of the shipments, and documented cargo weights, consisting of "weight tickets" issued by a certified commercial scale for each cargo container, needed to be included with billing invoices to the Government.
With respect to the shipments at issue in this matter, USTRANSCOM discovered that 563 weight tickets submitted by Farrell to support their billing invoices were "recreated" by Damco employees and not authentic weight tickets. Farrell and Damco were cooperative in the investigation.
This matter was investigated by the United States Army Criminal Investigation Command, Defense Criminal Investigative Service, Defense Contract Audit Agency, Naval Criminal Investigative Service, Air Force Office of Special Investigations, and the Office of the Special Inspector General for Afghanistan Reconstruction and handled by Assistant United States Attorney Nathan D. Stump.
Schenectady Man Indicted for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Edwin Ferrer, age 42, of Schenectady, New York, was arraigned today on a charge of being a felon in possession of a firearm and six rounds of ammunition.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
The indictment alleges that on December 18, 2015, Ferrer possessed a Smith & Wesson Model 41, .22 caliber semi-automatic pistol, with a defaced serial number, and six rounds of ammunition.
The charge in the indictment is merely an accusation and the defendant is presumed innocent until proven guilty.
The charge filed against Ferrer carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Ferrer was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and detained pending a trial scheduled for May 9, 2016 in Syracuse before United States District Judge Frederick J. Scullin, Jr.
This case is being investigated by the ATF and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Saratoga Resident Charged in International Elephant Ivory Trading SchemeRead the Press Release
SAN FRANCISCO – Shahram “Ron” Roohparvar was arrested today in connection with an alleged international elephant ivory trafficking scheme announced Acting United States Attorney Brian Stretch and U.S. Fish and Wildlife Service (USFWS) Special Agent in Charge Jill Birchell.
In an indictment unsealed today, Roohparvar, 61, of Saratoga, was charged with selling art objects made of elephant ivory on the international market. According to the indictment, the sale of elephant ivory has been largely banned and highly regulated since 1976. Federal statutes and international agreements regulate the export of elephant ivory and make it a crime to, among other things, export such products without the proper permits and declarations. According to the indictment, Roohparvar nevertheless offered ivory for sale on the internet, and he exported it in violation of these rules.
The indictment describes three transactions in which Roohparvar allegedly took part between 2012 and 2015. In January of 2012, Roohparvar is alleged to have offered to sell an ivory carving for sale and shipped it to New Zealand; in December of 2013, Roohparvar is alleged to have directed the export of an ivory carving to Australia; and in July of 2015, Roohparvar is alleged to have attempted to export an ivory statue to New Zealand. In all three cases, Roohparvar allegedly initiated the transactions without obtaining the required permits and without filing the necessary declarations with the USFWS. Roohparvar was charged with three counts each of wildlife trafficking, in violation of 16 U.S.C. § § 3373(d), and smuggling, in violation of 18 U.S.C. § 554.
Roohparvar was arrested this morning by Special Agents from the USFWS. He was then arraigned before U.S. Magistrate Judge Joseph C. Spero and released on a $250,000 bond. His next court appearance is scheduled for April 6, 2016, at 2p.m., for an initial appearance before U.S. District Judge Charles R. Breyer.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum statutory penalty for each count of wildlife trafficking is five years’ imprisonment and a $250,000 fine. The maximum statutory penalty for each count of smuggling is 10 years’ imprisonment and $250,000. Additional periods of supervised release, fines, and special assessments also could be imposed, however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Laura Vartain Horn is prosecuting the case with the assistance of Yanira Osorio. The prosecution is the result of an investigation conducted by the USFWS Office of Law Enforcement.
Santa Monica Man Faces Five Years in Federal Prison after Pleading Guilty to Conspiring to Engage in Synthetic Identity FraudRead the Press Release
LOS ANGELES – A Santa Monica man pleaded guilty this morning to a federal conspiracy charge stemming from a “synthetic identity” fraud ring that created bogus identities for the purpose of obtaining credit cards.
Yair Shoshani, 38, pleaded guilty to one count of conspiracy to commit bank fraud.
In a plea agreement filed in court, Shoshani, who also used the names “Ben Yahuda” and “Ben Cohen,” agreed to forfeit five properties and nearly $4.5 million in cash, including more than $3.2 million from a Swiss bank account.
Shoshani admitted that he conspired with others to conduct a “bust-out” scheme using synthetic identities and fictitious merchants to defraud banks that issue credit cards. Shoshani and the others created entirely fictitious synthetic identities, applied for credit with those bogus identities and manipulated the credit ratings for the synthetic identities by adding them as authorized users to credit card accounts belonging to real people who had high credit scores. With credit ratings established for the synthetic identities, Shoshani and the others set up fake business to process credit card transactions by the synthetic identities – transactions that were never paid for.
Victim banks in this “bust-out” scheme included JPMorgan Chase Bank, Bank of America, Citibank and Wells Fargo Bank.
Proceeds of the fraud scheme were used to purchase five properties in Los Angeles, West Hollywood and Santa Monica.
Shoshani pleaded guilty before United States District Judge George H. King, who is scheduled to sentence the defendant on June 13. As a result of today’s guilty plea, Shoshani, who has been in custody since June 2014, faces a statutory maximum sentence of five years in federal prison.
“Synthetic identity fraud causes significant loss to our nation’s financial institutions, as this case illustrates,” said United States Attorney Eileen M. Decker. “This guilty plea is a testament to law enforcement’s ability to look behind numerous false identities and fictitious businesses to hold the perpetrators accountable for their fraud. My office will continue to prosecute those that engage in identity fraud to the fullest extent of the law.”
The investigation into Shoshani was conducted by the Los Angeles Field Office of the Federal Bureau of Investigation, the Los Angeles Police Department, and the Los Angeles Sheriff’s Department.
Shoshani’s conviction is the most recent in a line of identity crime prosecutions brought by the U.S. Attorney’s Office. Recent cases include:
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Jeffrey Pineda, 33 of Stevenson Ranch, who pleaded guilty last month to a bank fraud charge after stealing the identities of his personal banking clients to withdraw money from their accounts;
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Robert Lett, 48, and Latanya Lett, 44, of Los Angeles, who pleaded guilty in January to conspiracy to commit mail fraud after defrauding the Employment Development Department out of nearly $1 million through identity theft and disability fraud;
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Vagan Dobazhyan, 53 of Northridge, who was sentenced in January to six years in prison for using counterfeit credit cards;
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Jorge Sanchez, 28 of Moreno Valley, who was sentenced in January to four years in federal prison for using counterfeit debit cards to make ATM withdrawals; and
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Elgrid Adamian, 39 of Sunland, who pleaded guilty in January to bank fraud in a case involving a different “bust-out” scheme resulting in losses of more than $500,000 and the forfeiture of two cars and more than $160,000.
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San Antonio Businessman Sentenced to 14 Years in Federal Prison for Multi-Million Dollar Investment ScamRead the Press Release
In San Antonio today, 54-year-old Armando Jesus Hernandez Leal of Shavano Park, TX, was sentenced to 170 months in federal prison in connection with a multi-million dollar investment fraud scam announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In August 2015, Hernandez pleaded guilty to a federal money laundering charge. By pleading guilty, Hernandez admitted responsibility for managing an estimated $80 million investment portfolio of a Mexican businessman and his family from 2005 to 2014, but had not invested his clients’ money like he had agreed. Hernandez spent their money to purchase homes, planes and other assets for his personal use.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered Hernandez to pay restitution to his victims in the amount of $25,434,939.53 and be placed on supervised release for a period of three years after completing his prison term.
“The defendant’s investment scheme represented one of the deepest betrayals of trust and friendship, committed for sheer greed to finance his lavish and extravagant lifestyle. Moreover, the devastating financial losses suffered by the victims were not inherited wealth; rather, they were the result of a family’s hard work and sacrifice, over several generations,“ said FBI Special Agent in Charge Christopher Combs.
“Today’s sentencing of Armando Hernandez Leal should be a reminder to those individuals who are looking for financial advice. You should take as much care in choosing this person or company as you would in choosing a doctor or a lawyer,” said Special Agent in Charge William Cotter of the Internal Revenue Service - Criminal Investigation, San Antonio Field Office. “Mr. Hernandez Leal’s decision to use his investors’ money to line his own pockets is a serious offense and the punishment must be as serious as the crime.”
This investigation was conducted by special agents from the FBI and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Russ Leachman and Greg Surovic prosecuted this case on behalf of the Government.
Rounds Crew Gang Member Sentenced for Racketeering Conspiracy Involving MurderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Demario Stewart, 27, of Buffalo, NY, who was convicted of racketeering conspiracy involving murder and drug dealing, was sentenced to 216 months in prison by Senior U.S. District Judge William M. Skretny. The defendant is a member of the “Rounds Crew” led by Johnny Rounds.According to Assistant U.S. Attorneys Joel L. Violanti and Wei Xiang, members of the Rounds Crew committed numerous acts of violence and narcotics trafficking on the East Side of Buffalo encompassing Broadway and several intersecting streets. Members of the gang guarded that territory and resorted to acts of violence to insure that no rival gang members or other individuals encroached upon their territory for any reason, including selling or distributing drugs.
Stewart was sentenced for his involvement in the July 10, 2009 murder of Brandon Haugabook on the corner of Paderewski and Townsend Streets in Buffalo.
Acts of violence by the Rounds Crew included the murders of two others who did not have any affiliation with gang activity, and the attempted murders of several others:
The August 12, 2009 murder of Larry Crosland on William Street in Buffalo;
The August 13, 2009 murder of Shawn Kozma on Reed Street in Buffalo. Kozma’s body was found burned a day later on August 14, 2009 in a vacant field on William Street;
Several attempted murders and shootings of rival gang members.
In addition to committing the murders and attempted murder, the Rounds Crew engaged in narcotics trafficking offenses in their territory which included Reed, Detroit, Townsend, and Coit Streets in Buffalo.
Eight members of the Rounds crew have been convicted in this case including leader Johnny Rounds who is scheduled to be sentenced on March 30, 2016 at 9:00 a.m.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent in Charge Adam S. Cohen, 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. Additional assistance was provided by the Erie County District Attorney's Office.
Reinbeck Man Sentenced to 30 Years for Child Pornography OffensesRead the Press Release
A man who received and possessed child pornography was sentenced today to 30 years in federal prison.
Michael Cottrell, age 43, from Reinbeck, Iowa, received the sentence after an October 13, 2015 guilty plea to one count of receipt of child pornography and one count of possession of child pornography. At the plea hearing, Cottrell admitted that, between 2012 and 2014, he knowingly received child pornography and possessed it on his computer. At the sentencing hearing, the parties and the court discussed Cottrell’s history of sexual contact with minors when he was a juvenile.
Cottrell was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Cottrell was sentenced to 360 months’ imprisonment. A special assessment of $200 was imposed, Cottrell was ordered to pay $500 in restitution, and he must serve a 20-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Grundy County Sheriff’s Office, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-82.
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Puretane Executives Admit Laundering Profits from Illegal Butane BusinessRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – March 10, 2016
SAN DIEGO – Former Chief Executive Officer Michael Tandberg and Chief Financial Officer Adam Hopkins of Lahar Manufacturing, Inc., pleaded guilty in federal court today, admitting that they conspired to launder proceeds from their illegal business. Their Newport Beach-based business—operating under the name Puretane—was the first and largest domestic manufacturer and distributor of butane specifically designed for use in making butane hash oil.
Butane hash oil (“BHO”) is a marijuana concentrate similar in appearance to honey or butter. BHO contains extremely high levels of tetrahydrocannabinol, or THC, and can be up to four times more potent than high grade marijuana. BHO is commonly manufactured by packing marijuana into a glass, plastic, or metal tube. Butane is then sprayed into the top of the tube. The butane strips the marijuana of its cannabinoid-containing oils, which drip from the bottom of the tube, often through a filter and into a holding container. The end product is highly-profitable and can be ingested as an oil, consumed in edibles, or solidified to make concentrated forms of cannabis known as “wax.”
During the manufacture of BHO, butane, a flammable gas that is odorless, colorless, and heavier than air, can evaporate out of the substance and collect on the floor, accumulating to explosive levels without proper ventilation. This process creates an invisible, but very real, risk of fires, explosions, and chemical burns. In 2015 alone, there were 33 reported fires and explosions that occurred during the manufacture of BHO in California.
According to the DEA, Butane Hash Oil Extraction Laboratories have caused 10 fires and explosions in San Diego County since January of 2015. In the Southern District of California there have been a number of Butane Hash Oil Extraction cases. In a recent case, defendant Steve Mora was sentenced last month to 40 months in custody after pleading guilty to creating substantial risk to human life while manufacturing Butane Hash Oil. Mora operated a marijuana dispensary where BHO was manufactured and resulted in an explosion in 2014.
News reports indicate that butane-related blasts are happening all over the country. For example, a 2014 article reported that Butane-fueled blasts sent 17 people to a Portland burn unit with serious injuries in the past 16 months, including one Northeast Portland man who later died from his injuries and a 12-year-old girl who suffered multiple broken bones after leaping from a second floor apartment building rocked by a butane explosion. During just the first nine months of 2014, Colorado reported that there were 31 butane hash oil explosions in homes across the State. A 2015 news article reported that at two Northern California burn treatment centers, injuries from BHO explosions accounted for eight to ten percent of severe burn cases, which represents a larger percentage than from car wrecks and house fires combined.
The manufacture of BHO is met by an unregulated and largely underground industry that plays out in garages, basements and kitchens. In this type of setting a spark from something as ordinary as a refrigerator compressor can set off a fiery explosion. Puretane’s butane was marketed specifically for use in the unregulated manufacture of BHO. For example, in October 2014, High Times, a drug culture magazine, featured an article describing Puretane’s butane as “designed specifically for the needs of BHO makers.” Puretane posted a link to the High Times article on its website and social media accounts. Similarly, in January 2015, Puretane hosted a contest, in which it offered a case of Puretane butane to the contestant who could manufacture the highest quality BHO.
Puretane sold its butane in 300 ml canisters for approximately $4-5 per canister to retailers throughout the United States, including to at least 25 retailers in San Diego County such as Raw Smokeshop, Dr. Green’s Ink, and Holy Smoke. From just the period of February to August 2015, Puretane sold more than 400,000 canisters of their butane to retailers.
As part of their pleas, Tandberg and Hopkins agreed to forfeit the money remaining in their corporate bank account and over 66,000 canisters of Puretane butane. Tandberg and Hopkins will appear for sentencing on May 27, 2016, at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
DEFENDANTS: Case Number 16-CR-460-GPC
Michael Tandberg Age: 54 Newport Beach, CA
Case Number 16-CR-461-GPC
Adam Hopkins Age: 45 Santa Monica, CA
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: 20 years’ imprisonment and $500,000 fine
AGENCY
Homeland Security Investigations
Previously Convicted Felon Sentenced for Illegally Possessing Firearms Stolen in Gun Store BurglariesRead the Press Release
DAYTON, Ohio – Ricky Lasley, 37, of Dayton, was sentenced in U.S. District Court to 52 months in prison for being a felon in possession of a firearm.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Dayton Police Chief Richard Biehl announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, investigators executed search warrants at Lasley’s home and business and discovered three firearms that had previously been stolen from gun shops in the area. A 9mm handgun seized had been stolen from the Miami Armory and the two other firearms had been stolen from Vandalia Range and Armory. Lasley admitted that he obtained the firearms from other individuals.
Lasley pleaded guilty on December 9, 2015 to one count of possession of a firearm by a convicted felon.
“This case accounts for three of the firearms previously stolen from area gun shops, and should send the message that we will continue to go after burglars and those illegally purchasing firearms,” U.S. Attorney Stewart said.
U.S. Attorney Stewart commended the cooperative investigation by ATF, FBI, Dayton Police Department and other members of the Community Initiative to Reduce Gun Violence and the Southern Ohio Safe Streets Task Force, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case.
Philadelphia Resident Charged with Illegal Reentry After DeportationRead the Press Release
Miguel Rodriguez-Juarez, 40, of Philadelphia, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about February 11, 2016, Rodriguez-Flores, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 19, 2001.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Terri Marinari.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Pleads Guilty to Child Pornogrphy ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that John Tarell Grayson, 35, of Erie, PA, pleaded guilty to receipt of child pornography before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Special Assistant U.S. Attorney Brian J. Counihan, who is handling the case, stated that the defendant requested and received sexually explicit pictures from a child who had not yet reached the age of 18. The pictures were transmitted to the defendant via text message picture attachments on a cellular telephone.
The plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Dunkirk Police Department, under the direction of Chief David ortolano.
Sentencing is scheduled for June 15, 2016 at 11:00 a.m. before Judge Skretny.
Oil and Gas Company Fined $400,000 for Failing to Provide Notification of a Hazardous DischargeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WALTER OIL & GAS COMPANY, a Texas corporation residing in Houston, was sentenced today on a one-count Bill of Information which charged the company with failing to provide notification to the National Response Center of a hazardous discharge, in violation of Title 33, United States Code, Section 1321(b)(5)(C). This charge relates to WALTER OIL & GAS COMPANY’s oil and gas production in the Grand Isle area of the Gulf of Mexico. The company previously entered a guilty plea on December 22, 2015.
U.S. District Judge Nannette Jolivette Brown ordered WALTER OIL & GAS COMPANY to pay a total monetary penalty of $400,000 and serve a two-year term of probation. The $400,000 monetary penalty will be divided as follows: $320,000 to the United States Treasury, $40,000 to the Louisiana Department of Environmental Quality, $30,000 to the Louisiana State Police Emergency Services Unit and $10,000 to the Southern Environmental Enforcement Network.
“Our federal and state law enforcement partners are committed to protecting our environment,” stated U.S. Attorney Kenneth Allen Polite, Jr. “We will continue to demand that businesses not illegally pollute the waterways that sit at the center of our culture and economy.”
“The Coast Guard Investigative Service places high priority on the protection of our delicate maritime environment. We will continue to work hand in hand with our law enforcement partners to pursue those who, by their actions, place that environment at peril,” said William Hicks, Acting Special Agent in Charge of the Coast Guard Investigative Service Gulf Region Office in New Orleans.
“Developing domestic sources of energy must be done responsibly, safely and without threatening public health or the environment,” said Doug Parker, Director of EPA’s criminal enforcement division. “The defendant failed to report illegal discharges of production waste fluids believed to be extremely toxic to aquatic environments, and this type of illegal activity compromises the hard work that state, local and federal partners have invested to restore the Gulf of Mexico. Today’s sentencing demonstrates that when companies damage the environment and mislead government officials, they will be held accountable for their actions.”
“The blatant discharge of waste onto our land and into our waterways is an illegal and hazardous act that causes serious harm to human health and the environment,” said Dr. Chuck Carr Brown, DEQ Secretary. “DEQ continues to work closely with its local, state and federal law enforcement partners to ensure that any person or business found to be in violation of environmental laws in the state will be investigated and prosecuted to the fullest extent of the law.”
U.S. Attorney Polite praised the work of the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”), the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“LDEQ-CID”), and the Coast Guard Investigative Service Gulf Region (“CGIS”) in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
New York Man Indicted for “Sextorting” a Minor in DelawareRead the Press Release
A federal grand jury in Wilmington, Delaware, indicted a New York man today on charges related to the production and distribution of child pornography and the use of threatening communications, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.
Justin R. Gulisano, 24, of Sodus, New York, was initially arrested on June 30, 2015, in Newark, New Jersey, on a Delaware state arrest warrant for charges related to his sexual exploitation of a child and sexual solicitation of a minor.
According to the indictment, from September 2012 through June 2015, Gulisano attempted to use, persuade, coerce and entice a minor to engage in sexually explicit conduct so that he could produce images of the conduct. In October 2013, Gulisano distributed sexual exploitation images of the minor victim on the Internet. Additionally, the indictment alleges that between April and June 2015, Gulisano threatened to injure the victim’s reputation.
An indictment is merely an allegation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New York Man Indicted for "Sextorting" a Minor in DelawareRead the Press Release
WILMINGTON, Del. – A federal grand jury in Wilmington, Delaware, indicted a New York man today on charges related to the production and distribution of child pornography and the use of threatening communications, announced U.S. Attorney Charles M. Oberly III of the District of Delaware.
Justin R. Gulisano, 24, of Sodus, New York, was initially arrested on June 30, 2015, in Newark, New Jersey, on a Delaware state arrest warrant for charges related to his sexual exploitation of a child and sexual solicitation of a minor.
According to the indictment, from September 2012 through June 2015, Gulisano attempted to use, persuade, coerce and entice a minor to engage in sexually explicit conduct so that he could produce images of the conduct. In October 2013, Gulisano distributed sexual exploitation images of the minor victim on the Internet. Additionally, the indictment alleges that between April and June 2015, Gulisano threatened to injure the victim’s reputation.
An indictment is merely an allegation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New Haven Man Pleads Guilty to Federal Firearm Charge Stemming from Violent RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HARRY ANDERSON, a.k.a. “Ace,” 23, of New Haven, pleaded guilty yesterday in New Haven federal court to one count of discharging a firearm in furtherance of a crime of violence.
This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.
In pleading guilty, ANDERSON admitted that on October 21, 2011, he ordered a quantity of crack cocaine from Marquise Moore, whom he knew to be a drug dealer. ANDERSON’s objective in ordering the crack cocaine was not to purchase it, but to rob Moore of the drugs and any cash he had on him at the time. When ANDERSON met Moore, he pulled out a .22 caliber handgun and shot him in the face. ANDERSON then fled, and did not take anything from Moore and did not complete the robbery.
ANDERSON, who is detained, is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 1, 2016, and faces a mandatory minimum term of imprisonment 10 years and a maximum term of imprisonment of life.
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert M. Spector and Peter D. Markle. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.