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20 April 2016
Former Consulting Group Owner Pleads Guilty to Bribing Official at European Bank for Reconstruction and DevelopmentRead the Press Release
PHILADELPHIA – Dmitrij Harder, 43, of Huntingdon Valley, Pennsylvania, the former owner and President of Chestnut Consulting Group Inc. and Chestnut Consulting Group Co. (the “Chestnut Group”), pleaded guilty today to bribing an official at the European Bank for Reconstruction and Development (EBRD) in violation of the Foreign Corrupt Practices Act (FCPA). Harder is a legal permanent resident of United States. U.S. District Court Judge Paul S. Diamond scheduled a sentencing hearing for July 21, 2016.
The EBRD was a multilateral development bank headquartered in London, England, and was owned by more than 60 sovereign nations and provided financing for development projects in emerging economies, primarily in Eastern Europe. Between 2007 and 2009, Harder engaged in a scheme to pay approximately $3.5 million in bribes to an EBRD official to corruptly influence the official’s actions on applications for EBRD financing submitted by the Chestnut Group’s clients and to influence the official to direct business to the Chestnut Group.
The EBRD ultimately approved applications for financing from two of the Chestnut Group’s corporate clients; the first resulted in the EBRD providing an $85 million investment and a 90 million Euro loan, while the second resulted in a $40 million investment and a $60 million convertible loan. Harder also admitted that the Chestnut Group earned approximately $8 million in “success fees” as a result of the EBRD’s approval of these two applications.
The case is being investigated by the FBI’s Philadelphia Division. It is being prosecuted by Assistant United States Attorney Michelle Morgan and Senior Trial Attorney Jason Linder of the Criminal Division’s Fraud Section. The Overseas Anti-Corruption Unit of the City of London Police and the Criminal Division’s Office of International Affairs also provided assistance. Germany, Jersey and Guernsey also provided assistance in this matter.
Former Bank Teller Sentenced for $83,000 EmbezzlementRead the Press Release
WICHITA, KAN. - A former Labette County bank clerk was sentenced Wednesday to three years on probation, including eight months home confinement, and ordered to pay full restitution for embezzling more than $83,000 from the bank where she worked, Acting U.S. Attorney Tom Beall said.
Angela S. Littlejohn, 41, Chetopa, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted the crime occurred while she worked as a teller during 2013 and 2014 at the Chetopa State Bank in Chetopa, Kan. She stole a total of at least $83,963 from multiple accounts at the bank
Beall commended the Federal Bureau of Investigation and Assistant U.S. Attorney Lanny Welch for their work on the case.
Former Axium International Tax Professional Admits Tax EvasionRead the Press Release
RIVERSIDE, California – An Orange County woman who formerly performed payroll tax services for Axium International, Inc. has pleaded guilty to a federal tax evasion charge.
Christina M. Futak, 58, a resident of the City of Orange, pleaded guilty on Monday to one count of criminal tax evasion.
The charge relates to conduct during the years 2002 through 2007, when Futak requested that Axium compensate her by making checks payable to “CFO, Inc.” Futak deposited her earnings from Axium into a bank account in the name of the company, using the proceeds for personal expenses and failing to report substantial sums on her federal income tax returns.
In 2012, Futak signed a federal income tax return representing that her total income for 2006 was $52,690. In reality, she earned more than $227,000 that year. Futak similarly understated her income on her 2005 and 2007 tax returns, resulting in total tax losses of $138,523.
“We will continue to work with IRS criminal investigators to ensure that everyone who interacts with the tax system does so with honesty and integrity,” said United States Attorney Eileen M. Decker. “Hiding income, making false claims against the government and seeking fraudulent tax refunds are all crimes that come with significant penalties.”
Futak pleaded guilty before United States District Judge Jesus G. Bernal, who is scheduled to sentence the defendant on August 22. At sentencing, Futak will face a statutory maximum sentence of five years in federal prison.
“Christina Futak’s attempt to evade tax by hiding income and filing false returns was a theft from the American public. It is a felony offense that carries severe consequences,” stated IRS Criminal Investigation’s acting Special Agent in Charge Anthony J. Orlando. “Tax professionals should heed the message that, when they defraud the IRS, federal prison will likely be the next stop in their professional journey.”
Futak is the third person to be charged in relation to an investigation into Axium by IRS Criminal Investigation. The former Axium CEO, John Visconti, who allegedly took millions of dollars of company funds and failed to report the income to the IRS (see: http://go.usa.gov/czhKj), is expected to go on trial in August. Ronald Garber, the former chief operating officer of the company, pleaded guilty to two counts of subscription to false tax returns and is scheduled to be sentenced in June 27.
Five Former New Orleans Police Officers Plead Guilty and are Sentenced in the Danziger Bridge Shooting CaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that five former officers of the New Orleans Police Department (NOPD) pled guilty and were sentenced in connection with the federal civil rights prosecution of a police-involved shooting that occurred on the Danziger Bridge in the days after Hurricane Katrina. That shooting left two innocent civilians dead and four others seriously wounded. The defendants also pled guilty and were sentenced for their roles in an extensive cover-up of the shooting.
KENNETH BOWEN pled guilty to Counts 1, 11, and 20; deprivation of rights under color of law, conspiracy to obstruct justice, and obstruction of justice by engaging in misleading conduct, respectively. BOWEN was sentenced to ten years imprisonment, to be followed by up to five years of supervised release on Counts 1 and 11, and up to three years as to Count 20.
ROBERT GISEVIUS pled guilty to Counts 1, 11, and 21; deprivation of rights under color of law, conspiracy to obstruct justice, and obstruction of justice by engaging in misleading conduct, respectively. GISEVIUS was sentenced to ten years imprisonment, to be followed by up to five years of supervised release on Counts 1 and 11, and up to three years as to Count 21.
ROBERT FAULCON pled guilty to Counts 8, 11, and 22; deprivation of rights under color of law, conspiracy to obstruct justice, and obstruction of justice by engaging in misleading conduct, respectively. FAULCON was sentenced to twelve years imprisonment, to be followed by up to five years of supervised release on Counts 8 and 11, and up to three years as to Count 22.
ANTHONY VILLAVASO pled guilty to Counts 1, 11, and 23; deprivation of rights under color of law, conspiracy to obstruct justice, and obstruction of justice by engaging in misleading conduct, respectively. VILLAVASO was sentenced to seven years imprisonment, to be followed by up to five years of supervised release on Counts 1 and 11, and up to three years as to Count 23.
ARTHUR KAUFMAN pled guilty to Counts 11 and 17, conspiracy to obstruct justice and falsification of evidence to obstruct justice, respectively. KAUFMAN was sentenced to three years imprisonment, to be followed by up to three years of supervised release as to Count 11, and up to five years as to Count 17.
The defendants are each assessed a mandatory special assessment fee of $100 as to each count.
Final Defendant in Sacramento County Indoor Marijuana Cultivation Scheme Sentenced to Federal PrisonRead the Press Release
SACRAMENTO, Calif. — Shihong Chen, 51, of Elk Grove, was sentenced today by United States District Judge Kimberly J. Mueller to one year and one day in prison for growing marijuana inside homes in Elk Grove and Sacramento, United States Attorney Benjamin B. Wagner announced.
According to court documents, Chen participated in scheme to grow marijuana inside homes in Sacramento and Elk Grove. On January 30, 2013, law enforcement executed federal search warrants at seven residential homes in Sacramento County, including the four houses where Chen cultivated marijuana: 9761 McKenna Drive, Sacramento; 8270 Cliffcrest Way, Sacramento; 8108 Gwerder Court, Elk Grove; and 3713 45th Avenue, Sacramento. Altogether, authorities seized more than 1,000 plants.
The investigation started when law enforcement learned of abnormally high power consumption at 8646 Everidge Court in Sacramento, owned by Green Ventures LLC. During their investigation, law enforcement observed Oakland-based real estate agent Zhiqiang Liu traveling frequently to and from the Everidge Court house. On January 30, 2013, law enforcement executed a federal search warrant at Everidge Court and found 867 growing marijuana plants, approximately 31.8 kilograms of cultivated marijuana, and $7,070 in cash.
Chen is the fifth and final defendant to be sentenced in this case. Four other defendants have been sentenced:
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March 23, 2016, Zhiqiang Liu was sentenced to three years in prison.
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March 16, 2016, Jun Mou Peng was sentenced to one year and one day in prison.
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October 28, 2015, Qinghong Li was sentenced to one year and one day in prison.
- December 17, 2015, Huanhao Chen was sentenced to one year of probation.
This case was the product of an investigation by the Drug Enforcement Administration and the Elk Grove Police Department. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
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Feds Seize Longest Tunnel on California-Mexico BorderRead the Press Release
Assistant U. S. Attorney Timothy Salel (619) 546-8055
NEWS RELEASE SUMMARY – April 20, 2016
SAN DIEGO – Federal officials have seized what is believed to be the longest cross-border tunnel ever discovered along the California-Mexico border, with an estimated length of more than eight football fields, plus officials confiscated more than a ton of cocaine, making it the single-largest cocaine seizure ever associated with a Southern California tunnel.
The tunnel is estimated to be more than 800 yards in length, and probably longer due to its zig-zagging route. It stretches from a house in Tijuana, Baja California, Mexico to an outdoor fenced-in commercial lot in an Otay Mesa industrial park, about 500 yards north of the international border. The tunnel exit on the U.S. side is a three-foot-diameter hole that at one point was covered by a jumbo-sized industrial dumpster.
It is equipped with rail and ventilation systems, lights and a sophisticated large elevator leading from the tunnel into a closet inside the Tijuana residence. It is one of the narrowest tunnels found to date, with a diameter of just three feet for most of the length of the passageway.
Six people were arrested in San Diego Friday and charged by federal complaint with various drug trafficking and tunnel-related charges, including conspiracy to import and distribute cocaine and conspiracy to use a border tunnel.
The defendants include Martiniano Garcia-Sedano, Cruz Armando Parra Corrales, Alejandro Bravo, Juan Carlos Chavez Fabian, Alejandro Gomez-Baez and Osmel Martinez. They were arraigned in federal court before U.S. Magistrate Judge Barbara Major and remain in custody pending detention hearings.
On April 12, agents saw a white commercial truck deliver an industrial dumpster to a lot in Otay Mesa on Marconi Drive and Enrico Fermi Drive. The agents saw the truck back up and, with direction from some of the defendants, drop the dumpster over a specific area that was later discovered to have a hole descending 10 feet into the ground and connecting to an underground tunnel leading to the U.S. Mexico border. Agents noticed the dumpster appeared to be filled with wood scraps.
The next day, agents saw two people cover the dumpster with a tarp. Ten minutes later, a forklift removed stacks of wooden pallets away from the front of the dumpster. Agents watched as defendant Cruz Armando Parra Corrales got down on the ground in a push-up position with his face close to the bottom of the dumpster, in an area where the dumpster connects to the truck, apparently communicating with someone who was inside the dumpster or inside a tunnel below the dumpster.
Soon after that, the truck loaded up the dumpster and transported it to another parking lot on Imperial Avenue near 30th Street, where it was unloaded. Another large box truck was backed up next to the dumpster with its cargo door open. Agents conducting surveillance watched as the defendants placed a tarp between the dumpster and box truck, and then moved back and forth between them. A couple of hours later, the box truck was driven out of the parking lot.
San Diego County sheriff’s deputies stopped the box truck and found 2,242 pounds of cocaine and 11,030 pounds of marijuana.
Federal agents obtained warrants to search the lots and found the tunnel exit. Inside the tunnel they found 68 bales of marijuana weighing 1,638 pounds. The exit was found at the exact location where agents had previously observed Garcia unload the dumpster from the roll off truck, with the assistance of Parra and Bravo. Agents also found an additional 1,430 pounds of marijuana in the dumpster.
In total, authorities seized 2,242 pounds of cocaine and more than 14,000 pounds of marijuana.
“On the surface, few would ever suspect that traffickers were moving multi-ton quantities of cocaine and marijuana worth tens of millions of dollars in such an unassuming way, through this rabbit hole in the ground, in full view of the world around it,” said U.S. Attorney Laura Duffy. “However, we can thank the hyper-vigilant agents who work this area for seeing what many of us would have missed. They don't judge a book by its cover. Whether a grandiose super tunnel or a humble rabbit hole, they home in and are prepared to take whatever action is necessary to secure our border.”
“Homeland Security Investigations and our law enforcement partners collaborated and utilized every resource to take down another cross-border tunnel that posed a threat to national security,” said Dave Shaw, special agent in charge for U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Diego. “HSI is committed to combatting increasingly dangerous trans-border smuggling activities and preventing those responsible from using this technique as a profitable investment.”
“This case is a strong reminder of the vulnerabilities that exist along the Southwest border,” said Hunter Davis, Director of Air Operations for Customs and Border Protection, Air and Marine Operations, “Drug trafficking organizations continue to jeopardize our National Security in exchange for profit.”
“We know that drug trafficking organizations are using any and all means to get their contraband across the US/Mexican Border,” said DEA San Diego Special Agent in Charge William R. Sherman. “Historically, seizures from drug tunnels have been marijuana and small amounts of cocaine. A 2,000 pound cocaine seizure tells DEA and our law enforcement partners that these groups are having to resort to unsophisticated tunnels to try and push through what amounts to a $22 million loss just in cocaine alone. This loss is a devastating blow even to an established drug trafficking organization.”
“Because of the collaboration of the agencies involved in this investigation, a serious blow was dealt to the criminal organization responsible for this threat,” said Chief Patrol Agent Richard A. Barlow, U.S. Border Patrol, San Diego Sector. “I applaud the men and women who worked tirelessly to stop the flow of dangerous narcotics through this tunnel and thank them for their continued efforts to protect the citizens we serve.”
The tunnel dismantled in Otay Mesa is the 13th large-scale operational drug smuggling tunnel discovered along the California border since 2006. In the last five years, federal authorities have detected more than 75 cross-border smuggling tunnels, most of them in California and Arizona.
DEFENDANTS Case Number 16MJ1118
Martiniano Garcia-Sedano
Cruz Armando Parra Corrales
Alejandro Bravo
CHARGES
Conspiracy to Import Cocaine and Marijuana, in violation of Title 21, United States Code, Sections 952, 960 and 963
Penalties: Ten year mandatory minimum, up to life in Prison, $10 Million fine
Conspiracy to Use a Border Tunnel, in violation of Title 18, United States Code, Section 555(d)
Maximum Penalty 20 years in prison, $250,000 fine.
DEFENDANTS Case Number 16MJ1119
Juan Carlos Chavez Fabian
Alejandro Gomez-Baez
Osmel Martinez
CHARGES
Conspiracy to Distribute Cocaine and Marijuana, in violation of Title 21, United States Code, Section 841(a) and 846
Penalties: Ten year mandatory minimum, up to life in Prison, $10 million fine
AGENCIES
U.S. Immigration and Customs Enforcement Homeland Security Investigations
U.S. Border Patrol
Drug Enforcement Administration
Customs and Border Protection, Office of Air and Marine
Customs and Border Protection, Office of Field Operations
Internal Revenue Service
San Diego County Sheriff’s Department
San Diego Police Department
California Highway Patrol
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
**This case stems from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the agencies noted above. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
For visuals, please refer to link below
https://www.justice.gov/usao-sdca/gallery/otay-mesa-tunnel
Federal Court Shuts Down Eastern Washington Tax Return PreparerRead the Press Release
A federal court entered a permanent injunction yesterday against Grandview, Washington tax return preparer Jose Magana and his business, Genesis Bookkeeping and Accounting. The injunction bars Magana and Genesis Bookkeeping from preparing tax returns for others. Magana and Genesis Bookkeeping admitted in a court filing that they had interfered with the enforcement and administration of the federal tax laws. They agreed to entry of the injunction.
According to the United States’ complaint, Magana and his business have engaged in a pattern of claiming for their clients false or inflated dependency exemptions, inappropriate filing status, and false or inflated Child Tax Credits and Additional Child Tax Credits. Their practice of claiming these false exemptions and credits has resulted in significant lost tax revenues by understating tax liabilities and claiming improper refunds, according to the suit.
Specifically, the suit alleges that, as of March 26, 2015, the Internal Revenue Service (IRS) had examined close to 300 tax returns that Magana and Genesis Bookkeeping and Accounting had filed from 2012 through 2014. Over 95 percent of these examinations resulted in adjustments to tax, with proposed deficiencies averaging approximately $3,150 per return, according to the complaint. The suit alleges that Magana and his business prepared more than 10,000 returns from 2012 through 2014.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Doctor Sentenced to Two Years in Prison for Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with a medical practice in Randolph, New Jersey was sentenced today to 24 months in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Gary Safier, 73, of Randolph, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes and one count of filing a false tax return. Judge Chesler imposed the sentence today in Newark federal court.
Including Safier, 39 people – 27 of them physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has to date recovered more than $12 million through forfeiture. A 28th physician – Bernard Greenspan – was indicted in March. His trial is scheduled for September 2016.
According to documents filed in this and related cases and statements made in court:
Safier admitted that from August 2007 through March 2013, he accepted bribes in return for referring patient blood specimens to BLS. Initially, the bribes were paid under the guise of bogus lease and service agreements between BLS and his medical office. Later, BLS paid Safier in monthly cash payments that, at times, exceeded $10,000 per month. According to the information, the total amount of bribes paid by BLS to Safier from the sham agreements and cash payments exceeded $353,000.
Safier also admitted that on his federal tax returns for 2010 and 2011, he failed to report $90,000 in bribes he received from BLS.
In addition to the prison term, Judge Chesler sentenced Safier to two years of supervised release. He must also forfeit $353,152.84.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; inspectors of the U.S. Postal Inspection Service, under the direction of Assistant Inspector in Charge James R. Buthorn; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Raymond M. Brown Esq., Woodbridge, New Jersey
Detroit One Collaboration Leads to 30-Year Sentence of Major Gang Leader for Violent Racketeering CrimesRead the Press Release
The leader of the Bounty Hunter Bloods violent street gang was sentenced to 30 years in prison today, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Detroit Police Chief James Craig, whose departments led the investigation as part of the Detroit One collaboration.
U.S. District Judge Nancy G. Edmunds sentenced Ramiah Jefferson, 27, of Detroit, a/k/a “Nightmare,” following his conviction at trial in August for racketeering conspiracy and possession of a firearm in furtherance of a crime of violence. Jefferson directed the murder and attempted murders of rival street gang members, furnished guns and encouraged gang members to commit violent crimes and narcotics trafficking.
Evidence at trial showed that the Bounty Hunter Bloods operated primarily in northwest Detroit, but their illegal activities extended outside of Michigan from California to North Carolina. Their crimes included murders, carjackings, armed robberies, drive-by-shootings, home invasions, arsons and witness intimidation.
“The Detroit One partners are working to reduce violent crime through gang prevention and intervention, but sometimes enforcement actions like this one are necessary,” McQuade said. “When street gangs commit violent acts and endanger innocent victims, we will use the full force of the law to remove them from our neighborhoods.”
“ATF’s primary mission is to protect our neighborhoods from violent organized street gangs,” said S. Robin Shoemaker, ATF Special Agent in Charge. “The significant federal sentences of the Bounty Hunter Bloods street gang leaders are the result of Detroit One initiative, an ongoing cooperative federal and state effort to combat violent gang and gun violence. Violent crime plagues our communities in many ways, but the link to most is the illegal possession and use of firearms by prohibited individuals”.
Bounty Hunter members extensively used social media as a means of self-promotion and communication. Members posted photographs on their personal social networking sites that highlighted their affiliation with the Bounty Hunters as well as their gang-related accomplishments. For example, on December 27, 2010, Jefferson utilized Facebook to direct the murder or attempted murders of rival Avon Gangster gang members. Jefferson posted that his fellow Bounty Hunters needed to “knock them down one by one” and that it was “huntin’ season.” Bounty Hunter members also created rap songs, amplifying their allegiance to the gang. Members would post these songs, along with videos, photographs and messages on social networking sites to celebrate and project the violent culture of the gang.
Evidence at trial demonstrated that the way members advanced in the gang was by “putting in work,” which meant committing murders, robberies, carjackings, home invasions, drug-deals and other acts of violence against rival gangs. One of these carjackings and murders occurred when members of the Bounty Hunter Bloods attempted to carjack a vehicle outside of a CVS pharmacy on Schaefer Road in February 2014. That carjacking led to the murder of the CVS security guard, Courtney Meeks, when he attempted to prevent the carjacking of a mother and her infant son. The Wayne County Prosecutor’s Office successfully prosecuted Jamare Rucker and Jeremy Jackson, both Bounty Hunter members, with both men receiving 33-60 year sentences for second degree murder and a consecutive two years for felony firearm convictions.
Evidence at trial also established that the Bounty Hunter Bloods were responsible for the murder of Marquise Robinson, a young man who was brutally murdered by members of this street gang because it was believed that he refused to come to the aid of a Bounty Hunter member, David Lamar Gay. The Wayne County Prosecutor’s Office successfully prosecuted the main shooter, Jayjuan Watts, who is now serving a life sentence for his crime. The U.S. Attorney’s Office successfully prosecuted David Lamar Gay for his role in the murder as part of this current prosecution.
In addition to Jefferson, the following Bounty Hunter Blood members were convicted and sentenced:
Evan Johnson, 24, of Detroit, a/k/a “Unkle Murda,” convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and sentenced to 30 years’ imprisonment;
Alexander Deshawn George, 20, of Detroit, a/k/a “Bullet,” convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and sentenced to 18 years’ imprisonment;
David Lamar Gay, 22, of Toledo, Ohio, a/k/a “Glock,” convicted of murder in aid of racketeering and sentenced to 17 ½ years’ imprisonment;
Drakkar Beral Cunningham, 25, of Detroit, a/k/a “Rellz,” convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and sentenced to 5 years’ imprisonment;
Everette Ramon George, 21, of Detroit a/k/a “Klout,” convicted of assault with a dangerous weapon in aid of racketeering and sentenced to four years, nine months’ imprisonment;
Mario Garnes, 28, of Detroit, a/k/a “Bloodhound,” convicted of RICO conspiracy and sentenced to 42 months’ imprisonment; and
Gerald Deshawn Turner, 25, of Detroit, a/k/a “G-Red,” convicted of RICO conspiracy and sentenced to time served and three years of supervised release.
Marcus Andre Harvey, 23, of Detroit, a/k/a “Ceasar,” was also convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence and is scheduled to be sentenced on May 2, 2016.
This indictment stems from the Detroit One initiative—a combined effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state and federal law enforcement seek to identify and arrest individuals and groups initiating violence in Detroit. Since Detroit One started in 2013, this effort has had led to significant indictments, convictions and sentences against a number of street gangs who are responsible for much of the violent crime in Detroit, including members of Latin Counts, Vice Lords and others, and a reduction in homicide and violent crime in Detroit.
The case was prosecuted by Assistant United States Attorneys Eric Doeh, Andrew Goetz and Eaton Brown.
Detroit Area Doctor Charged with Illegal Distribution of Prescription Drugs and FraudRead the Press Release
An indictment was unsealed today charging a doctor and three other individuals with conspiracy to illegally distribute prescription drugs, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge Timothy J. Plancon, U.S. Drug Enforcement Administration (DEA), Detroit Field Division and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General - Chicago Region.
Charged in the indictment are:
Dr. Michael Weiss, D.O. 63, of Troy
Edgarten Howard, 43, of Detroit
Carlos Johnson, 40, of Detroit
Ricky Easley, 30, of Detroit
The indictment alleges that from January 2013 through April 2015, Weiss conspired with the other defendants to write a large number of prescriptions for highly addictive controlled substances for supposed patients, who did not have a legitimate medical need for the drugs. Weiss primarily prescribed Roxicodone and its generic equivalent, oxycodone, and promethazine cough syrup. He saw the supposed patients in Howard’s home, where Howard, Johnson, and Easley paid Weiss cash for his services. Howard, Johnson, and Easley then obtained the drugs that Weiss authorized through the prescriptions, and sold them on the street.
The indictment alleges that Weiss caused Medicare to pay more than $250,000, and Blue Cross almost $40,000, for the illegitimate prescriptions. The indictment also alleges that Weiss submitted about 950 claims to Medicare and Blue Cross for providing services to the supposed patients, although Weiss never actually provided the services. Weiss received about $65,000 through the fraudulent bills.
“Diversion of prescription pills to the street market promotes the addiction to painkillers that leads to overdose deaths,” McQuade said. “We are focusing on charging doctors, pharmacists and the networks that are putting this poison on the streets.”
DEA Special Agent in Charge Timothy J. Plancon stated, “This indictment is just one example of DEA's determination and commitment to combat the troubling prescription drug abuse problem in this country. The doctor involved in this investigation abused his position of trust and jeopardized the lives of many individuals by leading this conspiracy to distribute dangerous controlled substances onto the streets of southeast Michigan and beyond. This indictment should make it clear that the DEA and our law enforcement partners are focused on investigating and pursuing those that are illegally diverting prescription drugs into our communities.”
"Physicians have a responsibility to provide care that is medically necessary and is in the best interest of their patients" said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General - Chicago Region. "Physicians who facilitate and contribute to the illegal diversion of prescription medications will be held accountable."
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by special agents and task force officers of the DEA and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney Lynn Helland.
Department of Justice and EPA Announce $78 Million Superfund Settlement to Clean up Groundwater Contamination at Southern California Superfund SiteRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced that a group of 66 companies have agreed to clean up contaminated groundwater at the Omega Chemical Corporation Superfund Site in Whittier, California. The settlement requires the companies to spend an estimated $70 million to install wells and operate a groundwater treatment system. In addition, the parties will reimburse EPA $8 million and the California Department of Toxic Substances Control $70,000 toward costs incurred in those agencies’ past cleanup actions at the site.
“We are pleased that the settling parties have come forward to do the work of cleaning up the groundwater contamination to which they and others contributed,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “This settlement makes excellent progress in cleaning up the Omega site and will also put additional systems in place to monitor and evaluate the level of contamination in order to guide future work.”
“Today’s settlement ensures the protection of a vital drinking water source for LA County,” said Regional Administrator Jared Blumenfeld of EPA’s Pacific Southwest Region. “The cleanup of this polluted aquifer is critical because groundwater in the region has been depleted because of the drought.”
“Our current drought has underscored the importance of protecting California’s groundwater resources,” said Director Barbara A. Lee of the California Department of Toxic Substances Control. “It has taken a lot of work between state and federal agencies to get to this point and it is vital we begin the work of cleaning up this aquifer."
Design work on the new treatment system, extraction wells and piping will begin later this year and continue into 2017, with construction expected to begin in 2018. EPA will oversee the work, which will implement the cleanup remedy required by the Agency’s 2011 Record of Decision for three miles of the groundwater plume. The settling parties will also install and sample groundwater monitoring wells later this year to investigate and evaluate the remaining contaminated area at the site to determine what additional remediation is needed.
The former Omega Chemical Corporation facility operated from approximately 1976 to 1991 and was located at 12504 and 12512 Whittier Boulevard, across the street from a residential neighborhood and within one mile of several schools. It handled drums and bulk loads of industrial waste solvents and chemicals that were processed to form commercial products. Subsurface soil and groundwater have high concentrations of trichloroethylene (TCE), perchloroethylene (PCE), Freons and other contaminants. Drinking high levels of TCE and PCE for extended periods of time could cause damage to the nervous system, liver and lungs and increase risk of cancer.
The Omega Superfund Site was placed on Superfund’s National Priorities List in 1999 and extends from Whittier through Santa Fe Springs and into Norwalk. Over the last 20 years, EPA has overseen the removal of more than 2,700 drums as well as more than 9,000 pounds of contaminants from the soil and groundwater. A soil vapor extraction system to address vapor intrusion from the Omega Site has been operating since 2010. A small groundwater pump and treatment system has treated more than 30 million gallons of contaminated groundwater since 2009.
The settling parties include a group of 66 corporations that will conduct the work. An additional 171 parties that have either sent waste to the site or operated in the area and contributed to the contamination, have also agreed to fund a portion of the work.
The settlement, lodged today in federal court in the Central District of California, will be posted in the Federal Register and available for public comment for a period of 30 days. The consent decree can be viewed on the Justice Department website: www.justice.gov/enrd/Consent_Decrees.html. The Justice Department also concurrently filed a complaint initiating the case that the consent decree resolves.
For more information on the site, please visit: www.epa.gov/superfund/omegachemical
Cushing Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BOB GENE HALL, a/k/a Robert Glen Hensley, age 35, of Cushing, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846(a)(1) and 841(b)(1)(A).
The Indictment alleged that beginning in or about February 2015, the exact date being unknown to the Grand Jury, and continuing until on or about September 1, 2015, within the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally combine, conspire, confederate and agree with others, both known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshal Service and the Drug Enforcement Administration. The defendant was indicted in December, 2015.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Coxsackie Woman Sentenced to Probation for Benefits FraudRead the Press Release
ALBANY, NEW YORK – Colleen J. McCarten, age 43, of Coxsackie, New York, was sentenced today to serve 3 years of probation after a jury found her guilty in October of fraudulently obtaining federal and state disability benefits.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent in Charge for the Social Security Administration ("SSA") Office of the Inspector General.
On October 16, 2015, following a two-week trial, a jury found McCarten and co-defendant John W. Caltabiano, Jr. guilty of conspiracy to commit mail fraud, five counts of mail fraud, and theft of government property.
Between April 2008 and October 2010, Caltabiano and McCarten conspired to steal Social Security Disability and Workers’ Compensation benefits by falsely representing to the SSA, the New York State Workers’ Compensation Board, and Travelers Insurance that an on-the-job injury had left Caltabiano almost completely blind. The evidence at trial established that McCarten guided Caltabiano into medical examinations and Workers’ Compensation hearings as if he could not see. She also completed and submitted forms claiming that he could not drive, or manage his own money or move without assistance. Finally, she collected Social Security benefit payments on his behalf.
As demonstrated in videos taken during the investigation and presented at trial, Caltabiano was able to drive, shop, go to the gym, and otherwise move about without the assistance that a blind person would need. McCarten knew Caltabiano was not blind because videos showed her accompanying Caltabiano during some of these outings.
U.S. District Judge Mae A. D’Agostino also sentenced McCarten to pay $27,784 in restitution to the SSA.
On April 15, Judge D’Agostino sentenced Caltabiano, age 49, of Catskill, New York, to serve 57 months in prison and 3 years of post-imprisonment supervised release, and to pay $27,784 in restitution to the SSA.
This case was investigated by the Social Security Administration, Office of the Inspector General, and the Office of the New York State Workers’ Compensation Fraud Inspector General. This case was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman and Special Assistant U.S. Attorney Jason W. White.
Charlotte Pimp Convicted of Sex Trafficking of A MinorRead the Press Release
CHARLOTTE, N.C. – A federal jury delivered a guilty verdict yesterday against Kenwaniee Vontorian Tate, 40, of Charlotte, for sex trafficking of a minor by fraud, force and coercion and sex trafficking of a minor while being required to register as a sex offender under North Carolina law, announce announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
In making today’s announcement U.S. Attorney Rose stated, “Tate preyed upon a vulnerable young girl, lured her into a world of sex and violence and exploited her in the worst possible way. Sex trafficking and victimizing minors for financial gain is a reprehensible crime. My office will continue to work closely with our law enforcement partners to identify and prosecute sex traffickers who profit from prostituting minors.”
According to filed documents, statements made in court and evidence presented during the two-day trial:
Between September 2014 and February 2015, Tate caused a minor female to engage in commercial sex acts, namely prostitution. Tate met the victim when she was only 15 years old and became her pimp shortly after they met. Tate and the victim moved from hotel to hotel while she worked as a prostitute. Testimony at trial established that Tate controlled all of the profits from the prostitution of the minor victim and used it to support himself. Tate advertised the minor victim for sex on an Internet website and arranged sexual encounters for her. Testimony at trial also revealed that Tate slapped and hit the victim when she did not do as Tate instructed, but Tate was careful not to hit her in the face because it may affect her ability to earn money through prostitution. Trial evidence established that the sex trafficking came to an end when CMPD officers arrested Tate on February 17, 2015 while looking for a different missing minor. During that operation, CMPD officers found the minor victim hiding in a hotel closet.
Trial evidence also established that at the time that Tate caused the minor victim to engage in prostitution, Tate was registered as a sex offender in North Carolina based upon previous state convictions in Minnesota for criminal sexual conduct. Tate was also convicted previously in Minnesota federal court for conspiracy to commit sex trafficking of a minor for his involvement in a sex trafficking ring that trafficked juvenile females from Minnesota to Las Vegas, Nevada, to engage in commercial sex acts. The judge in that case ordered Tate to serve a 16-month sentence.
Tate has been in federal custody since his arrest in November 2015. At sentencing, he faces a mandatory minimum term of 15 years and a maximum of life in prison and a $250,000 fine for sex trafficking of a minor by force, fraud and coercion, and a consecutive term of 10 years in prison for sex trafficking of a minor while required to register as a sex offender. A sentencing date has not been set.
The investigation was handled by HSI and CMPD. Assistant U.S. Attorney Kimlani M. Ford is in charge of the prosecution.
Charleston dealers sentenced to Federal prison for drug crimesRead the Press Release
CHARLESTON, W.Va. – Two Charleston men were sentenced today to federal prison for drug crimes, announced Acting United States Attorney Carol Casto. Leon Wilson, Jr., 43, was sentenced to two-and-a-half years in federal prison for distribution of heroin. In a separate prosecution, Anton R. Courts, 40, was sentenced to a year and three months in federal prison for distribution of crack and heroin.
Wilson admitted that in May 2015, he sold heroin on three separate occasions to a confidential informant working with law enforcement. The drug deals took place at Wilson’s Charleston apartment. After these drug deals, the Kanawha County Sheriff’s Department executed a search warrant at Wilson’s apartment. Officers found over $1,000 cash in Wilson’s possession, which included some of the pre-recorded buy money used in one of the drug deals with the confidential informant.
In a separate drug prosecution, Courts admitted that in April 2015, law enforcement made four controlled purchases of heroin and crack from Courts on the East End of Charleston. On April 22, 2015, detectives arrested Courts after a brief foot chase and found him to be in possession of $1,850 in cash, including $400 in bills used in the controlled purchases. In addition to his prison sentence, Courts was ordered to sell his 2014 Chevrolet Camaro in order to pay a fine of $10,000. Courts admitted paying $28,000 cash for the Camaro in November 2014 while unemployed. This is the second time Courts has been sentenced to federal prison. In May 2006, Courts was sentenced to six-and-a-half years in federal prison following his guilty plea to distribution of crack. His sentenced was later reduced to five years and three months based upon changes to federal sentencing guidelines.
The investigation of Wilson was conducted by the Kanawha County Sheriff’s Department, Sheriff’s Tactical Operations Patrol Team. Assistant United States Attorney Timothy D. Boggess was in charge of Wilson’s prosecution. The Charleston Police Department’s Special Enforcement Unit conducted the investigation of Courts. Assistant United States Attorney John J. Frail handled the prosecution of Courts. United States District Judge John T. Copenhaver, Jr., imposed the sentences.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including 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 other drugs in communities across the Southern District.
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Carterville Woman Charged with Methamphetamine OffenseRead the Press Release
A Carterville resident was indicted on April 5, 2016, for a methamphetamine offense, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Morgan R. Harper, 24, of Carterville, is charged in a one-count indictment charging conspiracy to manufacture methamphetamine. The indictment alleges that the offense occurred between 2013 and June 2015 in Jackson, Perry, and Randolph Counties. Harper appeared in federal court on April 19, 2016. She was ordered held without bond pending an April 21, detention hearing.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and Randolph County Sheriff’s Office. The Jackson County State’s Attorney’s Office also assisted in the investigation.
California Man Sentenced for Role in Manufacturing and Selling Fake Mercedes-Benz Diagnostic SoftwareRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARTIN VELLOZZI, age 58, of Rancho Palos Verdes, California, was sentenced today after previously pleading guilty to mail fraud for his role in creating and selling non-authentic Mercedes Benz diagnostic equipment
U.S. District Judge Susie Morgan sentenced VELLOZZI to four years’ probation and a $6,000 fine.
According to court documents, VELLOZZI owned LMV Industries, a California-based company that, among other things, offered technical information and support for Mercedes-Benz automobiles. Between about 2005 and July 2012, VELLOZZI produced and sold, with the help of companies located in Durham, North Carolina and Harahan, Louisiana, unauthorized, non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software. The SDS is used by mechanics to diagnose problems with and assure the safety of Mercedes-Benz vehicles employing electronic control systems. The companies in Durham, North Carolina and Harahan, Louisiana—Beckmann Technologies, Inc. and The Brinson Company, respectively – have previously pleaded guilty and been sentenced.
According to court documents, VELLOZZI, in conjunction with the other companies, obtained, modified, and duplicated the authentic SDS software so that it would operate on ordinary laptop computers without Mercedes-Benz’s authorization or license.
The “real” SDS sold for between $8,300 and $22,000 each, while VELLOZZI sold the fake SDS for around $6,000 each. In total, VELLOZZI sold approximately ninety-five non-authentic SDS.
U.S. Attorney Polite praised the work of the Cyber Task Force of the FBI’s New Orleans Division in investigating this matter. Assistant United States Attorneys Jordan Ginsberg and Myles Ranier were in charge of the prosecution.
California Man Pleads Guilty to Federal Methamphetamine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Jose Elias Gonzalez, 31, of Bakersfield, Calif., pleaded guilty this morning in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
Gonzalez was arrested in Aug. 2015, on a criminal complaint charging him with a methamphetamine trafficking offense after the DEA seized 1.90 kilograms (4.18 pounds) of methamphetamine from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque on July 26, 2015. Gonzalez was subsequently indicted on Aug. 11, 2015, and charged with possession of methamphetamine with intent to distribute.
During today’s proceedings, Gonzalez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Gonzales admitted transporting crystal methamphetamine from Los Angeles, Calif., on an eastbound Greyhound bus that stopped in Albuquerque on the morning of July 26, 2015. Gonzales intended to transport the methamphetamine, which was contained in four clear heat-sealed plastic bundles concealed in a shopping bag, to Little Rock, Ark.
At sentencing, Gonzalez faces up to 20 years in prison followed by a term of supervised release to be set by the court. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Rumaldo Armijo.
California Man Indicted for Large-Scale Meth DistributionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a California man was indicted by a federal grand jury today for attempting to sell a large amount of methamphetamine to an undercover law enforcement officer.
Javier Corona-Verduzco, 33, of Montclair, Calif., was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Corona-Verduzco on April 4, 2016.
Today’s indictment charges Corona-Verduzco with one count of possessing methamphetamine with the intent to distribute and one count of illegally reentering the United States after having been deported.
According to an affidavit filed in support of the original criminal complaint, Corona-Verduzco was attempting to sell pound quantities of methamphetamine to a confidential informant. Corona-Verduzco allegedly told the confidential informant that he had a large quantity of methamphetamine and was looking for customers to purchase multiple pound quantities.
The confidential informant told Corona-Verduzco that he/she knew someone who was interested in purchasing pounds of methamphetamine. According to the indictment, Corona-Verduzco agreed to meet the confidential informant and this acquaintance, who was actually an undercover law enforcement officer, on March 31, 2016. Corona-Verduzco met with the confidential informant and the undercover officer at a location in Kansas City, Kan., the affidavit says, and offered to sell 15 pounds of methamphetamine for approximately $80,000. Corona-Verduzco allegedly agreed to conduct the transaction at a house in Kansas City, Kan.
Corona-Verduzco and the confidential informant allegedly drove to a house in Kansas City, Mo., so that the confidential informant could check the quality of the methamphetamine for sale. At that location, the affidavit says, the confidential informant saw approximately 2.5 pounds of methamphetamine in a bag.
Corona-Verduzco was arrested the next day. According to the affidavit, he had told both the confidential informant and the undercover officer that the 15 pounds of methamphetamine he was attempting to sell them was in a gray Chevrolet Tahoe. Law enforcement officers located the Tahoe parked in front of the Kansas City, Mo., residence where Corona-Verduzco had taken the confidential informant the day before. Law enforcement officers found seven packages of methamphetamine, totaling 6.814 kilograms (approximately 15 pounds), hidden in a hollow compartment behind the driver’s side rear panel. Officers also found 400 grams of methamphetamine inside the residence.
According to the affidavit, Corona-Verduzco had been previously deported after being convicted of a felony.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Kan., Police Department, the Blue Springs, Mo., Police Department, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Jackson County Drug Task Force.
Buffalo Man Sentenced for Theft and Assault at VaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Norris King, 52, of Buffalo, NY, who was convicted of theft and assault within special maritime and territorial jurisdiction of the United States, was sentenced to five months in prison, followed by five months of community confinement in a community treatment center, by U.S. Magistrate Judge Hugh B. Scott.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on December 9, 2015, at the Veterans’ Affairs Medical Center in Buffalo, the defendant attempted to steal three North Face winter jackets, each valued at $179.00, from the Veteran Canteen Services. King was pursued and ultimately detained by the store manager and a second VA employee. During flight, the defendant assaulted an elderly veteran seeking medical treatment.
The sentence is the result of an investigation by the U.S. Department of Veterans’ Affairs, Criminal Investigations Division, under the direction of Special Agent in Charge Jeffrey Hughes, Northeast Field Office.
Bridgeport Man Sentenced to 37 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANTHONY RODRIGUEZ, 29, of Bridgeport, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, in May 2014, RODRIGUEZ was serving a three-year term of probation stemming from his 2013 felony conviction for third degree larceny. On May 20, 2014, Connecticut Adult Probation, with the assistance of Bridgeport Police and ATF, visited RODRIGUEZ’s residence and found several assorted rounds of ammunition. In addition, officers found a gun box containing only a receipt for a Smith and Wesson .40 caliber pistol that had been purchased by William Ramos on January 13, 2014 at a gun store in Orange. Officers also found a second empty gun box for a Springfield Armory XD40 pistol.
Also in May 2014, ATF and the New Haven Police Department seized six handguns from a convicted felon who identified William Ramos as his source for firearms. According the convicted felon, in 2013 and 2014, he had received seven different firearms from Ramos, some of which he had already sold to other individuals.
The investigation revealed that, between 2011 and 2014, Ramos had purchased a total of 29 handguns. RODRIGUEZ has admitted that he purchased seven firearms from Ramos, many of which he sold to others.
On November 7, 2014, RODRIGUEZ pleaded guilty to one count of possession of a firearm by a previously convicted felon.
Ramos has pleaded guilty and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Robert Spector.
Automobile Insurance Fraud Scheme Leads to Federal Health Care and Mail Fraud ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that four individuals were arrested on federal health care fraud and mail fraud charges related to their roles in an automobile insurance fraud conspiracy: Yoisler Herrera-Enriquez, age 30, and Dolis Rojas-Lopez, age 30, both of Wyoming, Michigan; Gustavo Ramiro Acuna-Rosa, Age 28, of Versailles, Kentucky; and, Antonio Ramon Martinez-Lopez, Age 34, of Port Richey, Florida.
All four defendants are currently in custody pending hearings on bond.
"Serial insurance fraud schemes undermine the fairness of the rates everyone has to pay. These schemes are and will continue to be a high priority for federal prosecution," U.S. Attorney Miles explained.
According to the indictment, Herrera-Enriquez, Acuna-Rosa and Martinez-Lopez operated physical therapy clinics in Wyoming and Lansing, Michigan, under the names "H&H Rehab Center," "Revive Therapy Center," and "Renue Therapy Center." These clinics utilized patient recruiters, including Rojas-Lopez, to find individuals who had either been involved in automobile accidents but who were not yet receiving medical treatment, or who were willing to participate in staged automobile accidents. The conspiracy then paid these automobile accident participants to claim injuries related to these automobile accidents and to become patients of the clinics. The clinics then falsely billed various automobile insurance carriers for physical therapy or other health care services that were not in fact provided. According to the indictment, two confidential government informants never received any physical therapy or other health care services of any kind at either H&H Rehab Center or Renue Therapy Center, yet those clinics billed an automobile insurance carrier for treatment allegedly provided to the confidential informants and were paid in excess of $50,000.00 between January 2014 and May 2015.
The mail fraud and conspiracy charges carry a statutory penalty of up to 20 years’ imprisonment and mandatory restitution. The health care fraud charge carries a penalty of up to 10 years’ imprisonment and mandatory restitution. The investigation is being handled by the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Ronald M. Stella is assigned to the prosecution.
The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.
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Arrest Made in Compromise of U.S. Army Computer ProgramRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that MITTESH DAS of Atlanta, Georgia, was indicted for intentionally causing damage to a U.S. Army computer program by transmitting malicious information, code, and command on a protected computer. DAS made his initial appearance in federal court today in the Northern District of Georgia.
The Grand Jury in the Eastern District of North Carolina indicted DAS on April 5, 2016.
The charges are punishable by up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of up to 3 years.
The charges and allegations contained in the indictment are merely accusations. The defendant is considered innocent unless and until proven guilty in a court of law.
"As charged, Mr. Das allegedly exploited his position as a cleared defense contractor to sabotage the U.S. Army Reserve's personnel system and disrupt pay to our nation's Soldiers," said Director Daniel Andrews of the Computer Crime Investigative Unit, U.S. Army Criminal Investigation Command. "Cybercrime and insider threats present significant challenges to national security and military operations, and we will continue to root out those responsible and help bring violators to justice."
The case is being investigated by U.S. Army CID. CID was assisted during the arrest by the Johns Creek, Georgia, Police Department. Assistant United States Attorney Jason Kellhofer is representing the government in this case.
Albuquerque Man Sentenced to 135 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Michael Stewart, 56, of Albuquerque, N.M., was sentenced today to 135 months in federal prison followed by a seven-year term of supervised release for his methamphetamine trafficking conviction. In a related civil case, a federal judge previously entered an order forfeiting to the United States $25,370.00 in drug proceeds that were seized from Stewart when he was arrested.
Stewart, whose lengthy criminal history includes felony convictions for cocaine and methamphetamine trafficking, robbery, kidnapping and theft, was prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Stewart was arrested on Feb. 19, 2015, after DEA task force officers seized 611.9 gross grams of methamphetamine and more than $25,000.00 in cash from him and his vehicle during a traffic stop in northwest Albuquerque. Stewart was subsequently indicted on the same charge on March 10, 2015.
On Jan. 20, 2016, Stewart pled guilty to the indictment and admitted that on Feb. 18, 2015, he was in possession of 543.3 grams of actual methamphetamine which he intended to distribute to others.
This case was investigated by the Albuquerque offices of the DEA and Homeland Security Investigations and the Bernalillo County Sheriff’s Office, and was prosecuted by the Organized Crime Section of the U.S. Attorney’s Office. Assistant U.S. Attorney Stephen R. Kotz handled the civil forfeiture proceedings.
Additional Charges, Additional Defendants in Allentown Armed RobberiesRead the Press Release
PHILADELPHIA – A superseding indictment was unsealed today charging six people in a robbery conspiracy that took place in Allentown, PA, and included seven robberies over a month-long period. Jacob Pabon, 19, and Lytic Fauntleroy, 19, were charged in December 2015 with robbery which interferes with interstate commerce, and using and carrying a firearm during a crime of violence in connection with two of the charged robberies. The superseding indictment adds conspiracy to commit Hobbs Act robbery, five additional counts of Hobbs Act robbery, five additional counts of use of a firearm in relation to a violent crime, and one count of felon in possession of a firearm. The superseding indictment also adds four defendants to the case.
Charged with Pabon and Fauntleroy in the conspiracy count are: Victor Morales, 21, Ruben Tarrats, 23, of Allentown, PA, Adrian Tosado, 22, also of Allentown, PA, and Jose Rapalo, 20, of Bethlehem, PA. A fifth defendant, Kairashaad Johnson, 21, of Allentown, PA, is charged in one of the robberies.
According to the indictment, the defendants robbed seven businesses, in May of 2015 in the city of Allentown, PA. Those robberies include: the May 7, 2015 robbery of Sun’s Deli at 1341 Union Street (Pabon, Tarrats, Tosado) and of North 7th Market and Bakery (Morales, Fauntleroy, Pabon, Tosado); the May 14, 2015 robbery of Betty Mini Market at 922 Chew Street (Morales, Tarrats, Rapalo); the May 21, 2015 robbery at 10th Street Market (Pabon, Rapalo, Johnson); the May 26, 2015 robbery of M&J Market at 448 North 2nd Street (Morale, Fauntleroy, Tarrats, Rapalo) and the Dominguez Food Market at 517 West Gordon Street (Morales, Fauntleroy, Tarrats); and the May 29, 2015 robbery of Speedway at 1043 Lehigh Street, (Fauntleroy, Pabon, Tarrats). In each robbery, the alleged robbers are also charged with using and carrying a firearm during a crime of violence. Morales is charged as a convicted felon in possession of a firearm. According to the indictment, the defendants used some of the robbery proceeds to pay rent on a house at 324 North Law Street, in Allentown, which they used as a stash house for their firearms.
“Thanks to the diligent work of the Allentown Police Department and ATF agents, a violent robbery crew has been dismantled,” said U.S. Attorney Zane David Memeger. “My office will continue to work closely with our law enforcement partners to keep the citizens of this district safe.”
“Dangerous people who commit dangerous crimes with firearms will be dealt with and brought to justice,” said ATF Special Agent-in-Charge Sam Rabadi. “ATF will work together with our State and local partners to target and arrest armed robbery gangs who threaten the safety of our homes, our businesses, and our neighborhoods.”
“I would like to thank the officers and detectives who spent countless hours investigating these robberies and for the assistance from the ATF,” said Allentown Police Chief Keith Morris. “Their diligence paid off and we were able to take some very violent individuals off the streets.”
If convicted of all counts, Tarrats faces a mandatory minimum sentence of 107 years in prison; Fauntleroy, Pabon, and Morales each face a mandatory minimum sentence of 82 years in prison; Rapalo faces a mandatory minimum sentence of 57 years in prison; Tosado faces a mandatory minimum sentence of 32 years in prison; and Johnson faces a mandatory minimum sentence of seven years in prison; each faces a maximum sentence of life, plus possible fines, supervised release, and special assessments.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allentown Police Department and the Lehigh County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Eric A. Boden.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
19 More Charged as Feds and Locals Combine to Dismantle Violent Gangs in Brunswick, GeorgiaRead the Press Release
BRUNSWICK, GA- A federal indictment, unsealed today, has charged 19 Brunswick, Georgia residents with conspiring to traffick crack cocaine and other drugs. Some of the defendants were also charged with related gun charges. If convicted of the drug trafficking conspiracy charge, the defendants face at least a maximum of 20 years in prison and a $1 million fine. According to evidence presented during today’s initial appearances of several defendants, the investigation of this case centered around the unlawful activities of alleged members of the Bloods, a national gang.
The 19 Brunswick residents indicted on federal charges include:
ROMIA DANIELS, 40,
AMELIA ROBINSON, 36,
CLEVELAND NOBLE, 39,
ANDRE SHORT, 46,
CONNELL ALDRIDGE, 47,
PEARL WARD, 54,
CALVIN LEWIS, 37,
MELVINA LEWIS, 44,
JAMAR BRADLEY, 27,
KURLIE KEMP, 24,
LOVELL JONES, 26,
FREDDIE HOLLOWAY, 24,
WILLIE MIDDLETON, 33,
AARON MCCLENDON, 25,
DEBOE PICKERING, 21,
JOHN EARL ROBERTS, 30,
CHARLES WILSON, 56,
TYRONE MIDDLETON, 33, and,
KEVIN SMITH, 24.
Nine of the Defendants were scheduled to have their initial appearances today at 3:30 p.m. in the federal courthouse in Brunswick before United States Magistrate Judge R. Stan Baker. United States Attorney Edward J. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Governments burden to prove guilt beyond a reasonable doubt.
Today’s announced indictment falls on the heels of a successful federal prosecution targeting the activities of another national gang operating in Brunswick, the Gangster Disciples. In that case, 16 defendants associated with the Arron Clark Drug Trafficking Organization (DTO) were convicted of a number of charges, including conspiracy to distribute drugs, felon in possession of firearms, and possessing firearms in furtherance of drug trafficking. Evidence presented in court filings and hearings demonstrated that the many members of the Clark DTO were also members of the Gangster Disciples. Members of this group sold drugs, committed violent acts, and used violence as a means to protect turf. Members of the group openly sold drugs on Wolfe Street in Brunswick.
Chief United States District Judge Lisa Godbey Wood sentenced Arron Clark, age 24, a leader of the organization, to serve 25 years in federal prison, to be served “far from Brunswick, Georgia.” Last week, Judge Wood sentenced Christopher Young, age 26, another leader of the organization, to serve 24 years in federal prison. Upon their release from prison, both will be placed on supervised release for five years.
The Brunswick residents who were convicted and sentenced as part of the Clark DTO include:
ARRON BERNARD CLARK, 300 months in prison,
CHRISTOPHER DASHAUN YOUNG, 288 months in prison,
BERNARD STERLING ELLZY, awaiting sentencing,
JOHN WESLEY BOONE, 24 months in prison,
GEORGE LASHAWN HUMPHREYS 27 months in prison,
JARVIS MAURICE DENMARK, 138 months in prison,
CHRISTOPHER EMMANUEL WILLIAMS, awaiting sentencing,
JOHNNY LEE WILLIAMS, 40 months in prison,
AKEEM ELIJAHWOUN KIRKSEY, 57 months in prison,
RONALD GREEN, 40 months in prison,
DONIEL PORTER, 90 months in prison,
CRAIG LAMAR ELKINS, 151 months in prison,
BEVERLY L. TYSON, 18 months in prison
ALAN EUGENE ADDISON, 110 months in prison,
TERRANCE TREMAIN THOMAS, 60 months in prison, and,
EBONE KATRELLE ALVIN, 24 months of probation.
Both of these cases were investigated by members of the FBI Costal Georgia Safe Streets Task Force (CGSSGTF), which is comprised of members of the FBI, Glynn County Police Department and the Brunswick Police Department. This task force was created to address the violent gang threat in southeast Georgia by structuring a new relationship with federal and local partners, who work together by aggressively identifying, prioritizing, and targeting the most violent street gangs. The task force was created in response to the increase of violent crime in the Brunswick area. The ATF, the U.S. Marshals and the Georgia Department of Community Supervision (GA Probation and Parole) also worked the investigations.
United States Attorney Edward J. Tarver said, “We will continue to work with our federal and local law enforcement partners to make our communities safer places. In 2015, this United States Attorney’s Office indicted a large and violent drug trafficking organization that was terrorizing the streets of Brunswick. A year later, those individuals are in prison. This year another separate and distinct organization has been charged for allegedly committing similar types of crimes. The United States Department of Justice will continue to identify and aggressively prosecute criminal organizations that terrorize Georgia communities. Keeping our neighborhoods safe is our only motive.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “These two investigations are a tremendous example of the gang reduction success resulting from the partnership formed between the Glynn County Police Department, the Brunswick Police Department, and the FBI to combat violent crime in the region. The FBI's Coastal Georgia Safe Streets Gang Task Force will continue to focus on investigating and arresting violent groups and individuals posing a threat to our community. We encourage all those in the community who have knowledge of gang activity to contact the FBI or local authorities as we all work together to reduce violent crime.”
Brunswick Police Department Chief Kevin M. Jones stated, “The collaborative efforts of this task force have had a direct impact on the reduction of crime in Brunswick over the last year. The first phase was successful and we look forward to the continued benefits of safer neighborhoods and streets as the assigned officers work hard to wrap up phase two.”
Glynn County Police Chief Matt Doering stated, “Law Enforcement has many parts that contribute to the whole of collaborative success. The partnership with the Brunswick Police Department, the FBI, the ATF, the United States Attorney’s Office and the District Attorney’s Office is a fine example of commitment to the safety our community.”
The cases are being prosecuted by Assistant United States Attorneys Carlton R. Bourne, Jr., E. Greg Gilluly, Jr., Marcela Mateo and Tania Groover. The District Attorney’s Office for the Brunswick Judicial Circuit has also assisted in the investigation and prosecuted related state cases. Any additional questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
19 April 2016
Washington Man Pleads Guilty to Sending Death ThreatsRead the Press Release
SACRAMENTO, Calif. — Scott Anthony Orton, 57, of Puyallup, Washington, pleaded guilty today to transmitting interstate threats, United States Attorney Benjamin B. Wagner announced.
According to court documents, Orton posted several threatening statements on a popular news website in which he expressed his intent to travel to Placerville, California to kill an officer of the Placerville-based company, Stem Express LLC. On July 16, 2015, among other threats, Orton wrote, “The management of StemExpress should be taken by force and killed in the streets today. Kill StemExpress employees. I'll pay you for it.” Orton also identified the target of his threats by name, and wrote “I’ll pay ten grand to whomever beats me to [the target].”
“Terrorizing others through threats of violence, whether communicated in person or through media websites, is cruel, dangerous and disruptive, and is also a federal crime,” said U.S. Attorney Wagner. “As Mr. Orton now knows, those who seek to terrorize others online will be identified and prosecuted.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
Orton is scheduled to be sentenced by United States District Judge John A. Mendez on August 2, 2016. Orton faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Aryan Brotherhood of Mississippi Gang Members Convicted on Federal Racketeering ChargesRead the Press Release
WASHINGTON – A federal jury in the Northern District of Mississippi convicted two members of the Aryan Brotherhood of Mississippi (ABM) gang for their participation in various criminal acts, including racketeering conspiracy, methamphetamine production and trafficking, kidnapping, murder and other federal offenses. The verdicts marked the culmination of a 2 ½ year investigation and prosecution of ABM, which resulted in the convictions of 42 members and associates of the gang.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) New Orleans Field Office, Special Agent in Charge Constance Hester of the Bureau of Alcohol, Tobacco, Fire and Explosives (ATF) New Orleans Field Office and Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division.
“The Criminal Division and its partners at U.S. Attorney’s Offices appropriately use racketeering laws to target the worst-of-the worst gang members and the leaders of criminal enterprises like the Aryan Brotherhood of Mississippi,” said Assistant Attorney General Caldwell. “Just as we did in the recent Aryan Brotherhood prosecutions in Texas and Oklahoma, we have taken great strides in dismantling a violent gang with a dangerous and repulsive philosophy.”
“This prosecution is the result of an unprecedented collaboration between the Department of Justice, federal, state and local law enforcement officers targeting a large-scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “As a result of this collaborative effort, we have effectively dismantled this violent organization and sent a clear message that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“Today, DEA and our talented team of prosecutors, agents, investigators, and analysts defeated the Aryan Brotherhood,” said Special Agent in Charge Comeaux. “This important success could not have been realized without the brave and courageous collective voice of the jurors in this case. Their verdict, on the heels of an outstanding investigative effort by all involved, sends a resounding message to this once seemingly impenetrable foe that if you attempt to operate a violent drug trafficking criminal enterprise here in the state of Mississippi, you can and will be “branded” with a guilty verdict for your crimes.”
“The outcome of this investigation is sending a positive message to the community on law enforcement’s commitment to keep the community safe,” said Special Agent in Charge Hester. “These verdicts will send a powerful message to the Aryan Brotherhood as well as all gangs throughout the country that if you prey on the citizens we are sworn to protect, you will spend the remaining years of your life in prison.”
“The convictions in these cases reflect a major disruption of a large organization that incubates in our prison systems and spills over to our streets," said Special Agent in Charge Alway. “Recognizing and neutralizing these organizations is vitally important and thanks to the joint efforts of our law enforcement partners at the Mississippi Bureau of Narcotics, Mississippi Bureau of Investigation, Mississippi Department of Corrections, the ATF, DEA and United States Marshals Service, Mississippi is much safer.”
On April 13, 2016, a federal jury convicted Frank George Owens Jr., 44, aka State Raised, of D’Iberville, Mississippi, and Eric Glenn Parker, 35, of Richton, Mississippi, both members of the Aryan Brotherhood of Mississippi, of engaging in a racketeering conspiracy and murder. Owens was additionally convicted of kidnapping and attempted murder. Parker was additionally convicted of conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. Sentencing will take place before U.S. District Judge Glen H. Davidson of the Northern District of Mississippi and will be scheduled at a later date.
1.
Frankie Owen
ABM Rank
Spoke (General)
Charge
RICO / Murder
Sentence
Up to life
2.
Eric Parker
Captain
RICO / Murder
Up to life
3.
Perry Mask
Spoke (General)
RICO
Up to life
4.
Brandon Creel
Spoke (General)
RICO
300 months
5.
Steven Hubanks
Spoke (General)
RICO
Up to life
6.
David Willis
Captain
RICO
235 months
7.
Ricky Jenkins
Soldier
RICO
Up to life
8.
James Dean
Captain
RICO
240 months
9.
Sonny Maxwell
Soldier
RICO
156 months
10.
Walter Burris
Captain
RICO
210 months
11.
M. Valentine
Captain
RICO
235 months
12.
William Carroll
Captain
Drug Trafficking
181 months
13.
Terry Kelly
State Treasurer
Gun Trafficking
Up to Life
14.
Christopher Stutsy
Soldier
Gun Trafficking
28 months
15.
Jonathan Wren
Soldier
Gun Trafficking
120 months
16.
Bernard Brown
Captain
VICAR
36 months
17.
Steve Williams
Ex-Member
Gun Trafficking
70 months
18.
Larry Sneed
Ex-General
VICAR
36 months
19.
Brodie Murphy
Associate
RICO
120 months
20.
Kathy Shadburn
Associate
RICO
96 months
21.
Natasha Ellis
Associate
RICO
97 months
22.
Gale Rutledge
Associate
RICO
24 months
23.
Brian Lee
Associate
Gun Trafficking
120 months
The following individuals pleaded guilty and have been sentenced or are awaiting sentencing: Northern District of Mississippi
24.
Bill Overton
Associate
Gun Trafficking
120 months
25.
Timothy Deshazier
Associate
Meth Trafficking
60 months
26.
Mike Smith
Associate
Meth Trafficking
70 months
27.
Michael McPherson
Associate
Meth Trafficking
57 months
28.
Tammy Lamb
Associate
Meth Trafficking
43 months
29.
Claude Collins
Associate
Meth Trafficking
38 months
30.
Jimmy Grimes
Associate
Meth Trafficking
120 months
31.
Arthur Fenderson
Meth Trafficking
120 months
32.
David Clark
Meth Trafficking
40 months
33.
Jeffery Fordham
Meth Trafficking
36 months
34.
Scotty Mask
Meth Trafficking
72 months
35.
Benjamin Raymond
Meth Trafficking
51 months
36.
Justin Applewhite
Meth Trafficking
65 months
37.
James Winters
Meth Trafficking
68 months
38.
Dean Hill
Meth Trafficking
60 months
Southern District of Mississippi
ABM Rank
Charge
Sentence
39.
Stephen Ochoa
Associate
Meth Trafficking
292 months
40.
Tommy McClemore
Associate
Meth Trafficking
260 months
41.
Kenny Waggoner
Associate
Meth Trafficking
121 months
42.
Jen McClemore
Associate
Meth Trafficking
64 months
The ABM is a violent, “whites only,” prison-based gang with members operating inside and outside of state penal institutions. The Aryan Brotherhood was originally a California-based prison gang that was formed during the 1960s. While the Aryan Brotherhood is a nation-wide gang, semi-autonomous branches have been established in virtually every state in the nation, including Mississippi. The ABM was founded in 1984, and was modeled after and adopted many of the precepts and writings of the Aryan Brotherhood of California. In early 2013, the leadership of the ABM began efforts to unify with the Aryan Brotherhood of California in order to achieve national recognition.
The ABM had a detailed and uniform organizational structure divided into three separate geographic areas of control, the northern, central and southern regions of the state of Mississippi. The state was overseen and directed by a three-member “wheel” commonly referred to as “spokes.” The wheel has ultimate authority in all gang matters. During the times alleged, the wheel of the ABM was comprised of spokes Frank Owens Jr, 44; Perry Mask, 46, of Corinth, Mississippi; Steven Hubanks, 45, of Rienzi, Mississippi; and Brandon Creel, 46, aka Oak, of Ellisville, Mississippi. Each region and prison had an assigned captain and lieutenants, sergeant-at-arms, treasurers, soldiers, associates and female members known as “featherwoods.” The ABM, inside the state correctional facilities and outside, were engaged in racketeering activities, including murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and trafficking in marijuana and methamphetamine.
In order to be considered for membership, a person must be sponsored by another member. Once sponsored, a prospective member must serve a probationary term of at least six months, during which time he is referred to as a prospect and his conduct is observed by the members. The prospect is required to sign a “prospect compact,” swear to an oath of secrecy and declare a lifetime commitment to the ABM.
ABM members often had tattoos incorporating one or more Nazi-style symbols as well as state-specific symbols including, but not limited to, the Swastika, the Iron Cross and the letter “13”, which represented M, the 13th letter in the alphabet for the state of Mississippi. The “patch” tattoo was unique to Mississippi members and could only be worn by fully made members who generally ascended to full membership by committing their “blood-in mission” on behalf of the gang. The most coveted tattoo was the Schutzstaffel (SS) lightning bolts, which designated “thunder warrior” or ABM executioner status, a rank that could only be obtained after three successful violent missions.
The ABM enforced their rules and promoted discipline among members, prospects and associates through violence and threats against those who violated the rules or posed a threat to the gang. Members, and oftentimes associates, were required to follow the orders of higher-ranking members. Only the wheel leaders had the authority to issue orders and mete out member punishment. Failure to perform an order resulted in the assigned member being in violation of their rules, with punishment ranging from a written violation to a beating or death. A violation meant a minor assault; an “S.O.S.” (smash on sight) meant a serious assault that often resulted in the removal of the member’s ABM brand (gang tattoo), often by knife or blow torch; a “K.O.S.” (kill on sight) resulted in the murder of a rival gang member or of an ABM member or associate who committed an egregious violation of gang rules.
The DEA, ATF, FBI and the Mississippi Bureau of Narcotics investigated the case. The U.S. Marshals Service; Federal Protective Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Harrison County, Mississippi, Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo, Mississippi, Police Department; North Mississippi Narcotics Unit; Tishomingo, Mississippi, County Sheriff’s Office; Lee County, Mississippi, Sheriff’s Office; Forrest County, Mississippi, District Attorney’s Office; Prentiss County, Mississippi, Sheriff’s Office; Jones County, Mississippi, Sheriff’s Office; Harrison County, Mississippi, Sheriff’s Office; and South Mississippi Metro Enforcement Team also provided valuable assistance. The Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Offices of the Northern and Southern District of Mississippi prosecuted the case.
Thirty-Six Members of Two Rival Manhattan Drug Trafficking Organizations Operating in NYCHA Housing Projects Charged in Federal Court with Narcotics Trafficking and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of two Indictments charging a total of 36 members of two rival Manhattan-based drug trafficking organizations for narcotics trafficking and firearms offenses (the “Washington Houses Indictment” and the “East River Indictment”). These two drug trafficking organizations operate out of three New York City Housing Authority (“NYCHA”) developments in East Harlem: the President George Washington Houses (the “Washington Houses”), the East River Houses (“East River”), and the Metro North Plaza (“Metro North”).
The Washington Houses Indictment charges 20 members of the Washington Houses Drug Trafficking Organization (“DTO”) in the case of United States v. Hasoan Alto, a/k/a “Hass,” et al., which has been assigned to United States District Judge Victor Marrero. The East River Indictment charges 16 members of the East River DTO in the case of United States v. Charles Kenyatta, a/k/a “Charlie Cee,” et al., which has been assigned to United States District Judge Alison J. Nathan. Of the 36 defendants charged in both the Washington Houses and East River Indictments, 29 are currently in custody, including 26 defendants who were arrested earlier last night and today as part of a coordinated takedown between the FBI and NYPD. The defendants already in custody will be presented today before United States Magistrate Henry B. Pitman.
Manhattan U.S. Attorney Preet Bharara said: “For far too long, NYCHA residents have had to live with drug dealing and violence as part of their everyday lives. With the arrests of 36 alleged members of violent drug trafficking groups, we seek to stem the flow of drugs and the cycle of violence plaguing the Washington Houses, East River Houses and Metro North Plaza. As the indictments allege, these defendants trafficked in all types of drugs, including heroin, crack cocaine, oxycodone and marijuana; peddled in all areas in and around the housing projects, including near schools and in city hospitals; and protected their lucrative businesses with guns and violence. Residents of public housing – like all residents of New York City – deserve safe streets, free of drugs and violence. I thank our partners at the FBI and NYPD for their work in this investigation and for their commitment to making our city and our housing projects safer and drug free.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Today we carried out a coordinated operation to arrest more than 30 members of two drug trafficking organizations who violently carried out their illegal business dealings in the East Harlem area. Getting those who bring guns and drugs in to our neighborhoods, schools, and hospitals is the only way we can get violence off the city streets that affects everyday citizens. The FBI will continue our partnership with the NYPD to investigate and bring those who are part of such criminal organizations to justice.”
Commissioner William J. Bratton said: "For years the residents of East Harlem have been subjected to the violence and fear associated with the rampant illegal narcotics activity in this area. Today's arrests with the FBI and prosecution by the office of the US Attorney for the Southern District will undoubtedly result in a safer East Harlem community."
As alleged in the Indictments unsealed today in Manhattan federal court and in other court papers[1]:
United States v. Hasoan Alto, a/k/a “Hass,” et al.
The Washington Houses are a housing development operated by NYCHA in East Harlem. From at least in or about 2015 up to and including in or about April 2016, HASOAN ALTO, a/k/a “Hass,” ANTONIO REYES, a/k/a “Tone,” a/k/a “Capo,” CARLOS VEGA, a/k/a “Gotti,” JASON KELLY, a/k/a “Beast,” ANTOINE BOYCE, a/k/a “Fetty Baller,” AARON RICE, a/k/a “Goon,” TYRONE SCHULTZ, a/k/a “Fats,” ZAGORA DAVIS, a/k/a “Bianca,” JOSE MEDINA, a/k/a “JoJo,” JASON JARVIS, a/k/a “Slim,” JONATHAN ANGULO, a/k/a “J.O.,” TAQUAN SANDERS, a/k/a “Goose,” a/k/a “Goo,” ANGEL VILLAFANE, DEVIN RODRIGUEZ, LEON ROBINSON, a/k/a “Pop,” JOSHUA NEGRON, TAHIEM HOLMES, NIJEL RICHARDSON, NATHANIEL COLEMAN, and AISA TOMPKINS (the “Washington Houses Defendants”), operated a drug trafficking organization (the “Washington Houses DTO”) in and around the Washington Houses. The Washington Houses DTO trafficked in a variety of narcotics – including crack cocaine, heroin, oxycodone, and marijuana on a daily basis. The Washington Houses Defendants sold narcotics in areas frequented by New York City’s most vulnerable citizens, including in and within the vicinity of New York City schools and inside two New York City hospitals.
In addition, members of the Washington Houses DTO protected and maintained their drug business through the firearms and acts of violence. For example, in or about 2016, ANTONIO REYES, a/k/a “Tone,” a/k/a “Capo,” and JONATHAN ANGULO, a/k/a “J.O.,” the defendants, discussed plans to shoot another individual because it was their “block.” Similarly, ANTOINE BOYCE, a/k/a “Fetty Baller,” bragged about having assaulted another individual and having knocked him unconscious. Also in or about 2016, DEVIN RODRIGUEZ, with REYES’s help, robbed another drug dealer at gunpoint.
Count One of the Washington Houses Indictment charges HASOAN ALTO, a/k/a “Hass,” ANTONIO REYES, a/k/a “Tone,” a/k/a “Capo,” CARLOS VEGA, a/k/a “Gotti,” JASON KELLY, a/k/a “Beast,” ANTOINE BOYCE, a/k/a “Fetty Baller,” AARON RICE, a/k/a “Goon,” TYRONE SCHULTZ, a/k/a “Fats,” ZAGORA DAVIS, a/k/a “Bianca,” JOSE MEDINA, a/k/a “JoJo,” JASON JARVIS, a/k/a “Slim,” JONATHAN ANGULO, a/k/a “J.O.,” TAQUAN SANDERS, a/k/a “Goose,” a/k/a “Goo,” ANGEL VILLAFANE, DEVIN RODRIGUEZ, LEON ROBINSON, a/k/a “Pop,” JOSHUA NEGRON, TAHIEM HOLMES, NIJEL RICHARDSON, NATHANIEL COLEMAN, and AISA TOMPKINS, with participating in a conspiracy to distribute narcotics, including crack cocaine, heroin, oxycodone, and marijuana.
Count Two of the Washington Houses Indictment charges ANTONIO REYES, a/k/a “Tone,” a/k/a “Capo,” DEVIN RODRIGUEZ, JONATHAN ANGULO, a/k/a “J.O. ,” AARON RICE, a/k/a “Goon,” and ANTOINE BOYCE, a/k/a “Fetty Baller,” with possessing a firearm in furtherance of the narcotics conspiracy charged in Count One.
United States v. Charles Kenyatta, a/k/a “Charlie Cee,” et al.
In addition to the Washington Houses, NYCHA also operates two other housing developments in East Harlem: East River and Metro North. CHARLES KENYATTA, a/k/a “Charlie Cee,” KASEEM WILSON, a/k/a “Kas,” a/k/a “Brown,” EFRAIN SANCHEZ, a/k/a “Solo,” SAMUEL RIVERA, a/k/a “Jazz,” a/k/a “Mulah,” a/k/a “Sammy,” FNU LNU, a/k/a “Sha,” KENYATTA FURS, a/k/a “Kenny Gilmore,” IVETTE COLON, WILLIAM ROBERTS, a/k/a “Mel Black,” TERRELL BLAND, a/k/a “Relly Rell,” a/k/a “Cash,” DAVON STEWART, a/k/a “Q,” MARCUS TOXEY, a/k/a “Bee Bee,” CARL ZELLER, a/k/a “Tone,” SHARON HILL, BRYAN DAFFIN, a/k/a “Q,” a/k/a “BJ,” ABRAHAM CUCUTA, a/k/a “Holiday,” and BISHAUNTI POLAND, a/k/a “Bino” (the “East River Defendants”). From at least in or about 2012 up to and including in or about April 2016, the East River Defendants operated another drug trafficking organization (the “East River DTO”) in and around East River and Metro North. Like the Washington Houses DTO, the East River DTO trafficked in several narcotics, including crack cocaine, heroin, and marijuana, on a daily basis. Furthermore, the East River Defendants’ narcotics trafficking activity extended to, among other places, public streets and the vicinity of New York City schools.
Also like the Washington Houses Defendants, the East River Defendants planned and engaged in violent acts and possessed firearms to protect and maintain the East River DTO’s illegal businesses. For example, in or about 2016, CHARLES KENYATTA, a/k/a “Charlie Cee,” planned to rob a victim in a barbershop in the area. TERRELL BLAND, a/k/a “Relly Rell,” a/k/a “Cash,” claimed in social media that individuals who were not part of the East River DTO would be “target[s].” KASEEM WILSON, a/k/a “Kas,” a/k/a “Brown,” also possessed a firearm in the area of where the East River DTO operated in furtherance of the charged drug dealing conspiracy.
Count One of the East River Indictment charges CHARLES KENYATTA, a/k/a “Charlie Cee,” KASEEM WILSON, a/k/a “Kas,” a/k/a “Brown,” EFRAIN SANCHEZ, a/k/a “Solo,” SAMUEL RIVERA, a/k/a “Jazz,” a/k/a “Mulah,” a/k/a “Sammy,” FNU LNU, a/k/a “Sha,” KENYATTA FURS, a/k/a “Kenny Gilmore,” IVETTE COLON, WILLIAM ROBERTS, a/k/a “Mel Black,” TERRELL BLAND, a/k/a “Relly Rell,” a/k/a “Cash,” DAVON STEWART, a/k/a “Q,” MARCUS TOXEY, a/k/a “Bee Bee,” CARL ZELLER, a/k/a “Tone,” SHARON HILL, BRYAN DAFFIN, a/k/a “Q,” a/k/a “BJ,” ABRAHAM CUCUTA, a/k/a “Holiday,” and BISHAUNTI POLAND, a/k/a “Bino,” with participating in a conspiracy to distribute narcotics, including crack cocaine, heroin, and marijuana.
Count Two of the East River Indictment charges KASEEM WILSON, a/k/a “Kas,” a/k/a “Brown,” with possessing a firearm in furtherance of the narcotics conspiracy charged in Count One.
* * *
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Sidhardha Kamaraju, Max Nicholas, and Jane Kim are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
###
United States v. Hasoan Alto, a/k/a “Hass,” et al., 16 Cr 272 (VM)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to Distribute Narcotics
21 U.S.C. § 846
HASOAN ALTO
ANTONIO REYES CARLOS VEGA
JASON KELLY
ANTOINE BOYCE
AARON RICE
TYRONE SCHULTZ
ZAGORA DAVIS
LEON ROBINSON
JOSE MEDINA
JASON JARVIS
JONATHAN ANGULO
TAQUAN SANDERS ANGEL VILLAFANE DEVIN RODRIGUEZ LEON ROBINSON JOSHUA NEGRON TAHIEM HOLMES
NIJEL RICHARDSON NATHANIEL COLEMAN AISA TOMPKINS
Life in prison
2
Possession of Firearm in Furtherance of Narcotics Trafficking
18 U.S.C. 924(c)(1)(A)
ANTONIO REYES
DEVIN RODRIGUEZ JONATHAN ANGULO AARON RICE
ANTOINE BOYCE
Life in prison
DEFENDANT
AGE
RESIDENCE
HASOAN ALTO,
a/k/a “Hass”
41
New York, New York
ANTONIO REYES,
a/k/a “Tone,”
a/k/a “Capo”
24
New York, New York
CARLOS VEGA,
a/k/a “Gotti”
31
New York, New York
JASON KELLY,
a/k/a “Beast”
26
New York, New York
ANTOINE BOYCE,
a/k/a “Fetty Baller”
26
New York, New York
AARON RICE,
a/k/a “Goon”
24
New York, New York
TYRONE SCHULTZ,”
a/k/a “Fats”
44
New York, New York
ZAGORA DAVIS,
a/k/a “Bianca”
25
New York, New York
JOSE MEDINA,
a/k/a “JoJo”
34
New York, New York
JASON JARVIS,
a/k/a “Slim”
28
New York, New York
JONATHAN ANGULO,
a/k/a “J.O.”
23
New York, New York
TAQUAN SANDERS,
a/k/a “Goose,”
a/k/a “Goo”
29
New York, New York
ANGEL VILLAFANE
32
New York, New York
DEVIN RODRIGUEZ
22
New York, New York
LEON ROBINSON,
a/k/a “Pop”
43
New York, New York
JOSHUA NEGRON,
34
New York, New York
TAHIEM HOLMES
25
New York, New York
NIJEL RICHARDSON
27
New York, New York
NATHANIEL COLEMAN
25
New York, New York
AISA TOMPKINS
25
New York, New York
United States v. Charles Kenyatta, a/k/a “Charlie Cee,” et al., 16 Cr 273 (AJN)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to Distribute Narcotics
21 U.S.C. § 846
CHARLES KENYATTA KASEEM WILSON EFRAIN SANCHEZ
SAMUEL RIVERA
FNU LNU
KENYATTA FURS
IVETTE COLON WILLIAM ROBERTS
TERRELL BLAND
DAVON STEWART
MARCUS TOXEY
CARL ZELLER
SHARON HILL
BRYAN DAFFIN ABRAHAM CUCUTA
BISHAUNTI POLAND
Life in prison
2
Possession of Firearm in Furtherance of Narcotics Trafficking
18 U.S.C. § 924(c)(1)(A)
KASEEM WILSON
Life in prison
DEFENDANT
AGE
RESIDENCE
CHARLES KENYATTA,
a/k/a “Charlie Cee”
24
New York, New York
KASEEM WILSON,
a/k/a “Kas,”
a/k/a “Brown”
25
New York, New York
EFRAIN SANCHEZ,
a/k/a “Solo”
23
New York, New York
SAMUEL RIVERA,
a/k/a “Jazz,”
a/k/a “Mulah,”
a/k/a “Sammy”
24
New York, New York
FNU LNU,
a/k/a “Sha”
--
New York, New York
KENYATTA FURS,
a/k/a “Kenny Gilmore”
39
New York, New York
IVETTE COLON
51
New York, New York
WILLIAM ROBERTS,
a/k/a “Mel Black”
41
New York, New York
TERRELL BLAND,
a/k/a “Relly Rell,”
a/k/a “Cash”
20
New York, New York
DAVON STEWART,
a/k/a “Q”
30
New York, New York
MARCUS TOXEY,
a/k/a “Bee Bee”
28
New York, New York
CARL ZELLER,
a/k/a “Tone”
36
New York, New York
SHARON HILL
49
New York, New York
BRYAN DAFFIN,
a/k/a “Q,”
a/k/a “BJ”
19
New York, New York
ABRAHAM CUCUTA,
a/k/a “Holiday”
32
New York, New York
BISHAUNTI POLAND,
a/k/a “Bino”
30
New York, New York
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Statement from Head of the Civil Rights Division Vanita Gupta Regarding District Court’s Approval of Consent Decree with City of Ferguson, MissouriRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, released the following statement regarding the ruling issued by U.S. District Judge Catherine D. Perry of the Eastern District of Missouri approving the department’s consent decree with the city of Ferguson, Missouri:
“Now that the consent decree has been approved by the court, the department is looking forward to working with the city of Ferguson as it implements the decree and continues the essential work to create a police department that the Constitution requires and that residents deserve.”
Statement of U.S. Attorney Andrew Luger on Partial Verdict After Trial of Officer Michael GriffinRead the Press Release
“While we had hoped for a different outcome, we respect the verdict of the jury and thank them for their service during this long and difficult trial. We strongly believe that this case needed to be brought before a Court, publicly tried, and decided by a jury. Our office is reviewing its options as to those remaining counts of the indictment upon which the jury was unable to reach a unanimous verdict.”
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Serial Bank Robber Exiled to over 17 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced John Edward Hayes, age 46, formerly of Baltimore, today to 209 months in prison followed by five years of supervised release for armed bank robbery, use of a firearm during the commission of a crime of violence and illegal possession of a firearm. Judge Bennett ordered Hayes to pay restitution of $17,697.11, the amount of the banks’ losses.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Commissioner Kevin Davis of the Baltimore Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County (Virginia) Police Department.
According to his plea agreement, from February to May 2014, Hayes robbed a string of banks in the Baltimore and Washington, D.C. metropolitan areas. On several occasions Hayes presented the teller with a note stating that he had a gun, or told the teller that he had a gun.
Specifically, Hayes robbed the PNC Bank on North Charles Street in Baltimore on February 3; the Wells Fargo Bank on North Rolling Road in Catonsville on February 18 and again on March 14, the Capitol One Bank on New Hampshire Avenue in Silver Spring on April 21, and the Capitol One Bank on Georgia Avenue in Wheaton on April 28.
On May 1, Hayes robbed the SunTrust Bank located on Baltimore National Pike in Columbia using a handgun. The handgun was seized when he was taken into custody on May 6, 2014. A security officer encountered Hayes in the restroom of a McDonald’s. Hayes was seriously injured by a gunshot from the security guard.
The total amount Hayes stole in the six bank robberies was $17,697.11.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments, Montgomery County Police Department and the Fairfax County (Virginia) Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham and Special Assistant United States Attorney Lauren Perry, who prosecuted the case.
San Antonio Man Sentenced to Federal Prison on Child Pornography ChargeRead the Press Release
Earlier today, 31-year-old Jeffrey Owen Tucker of San Antonio was sentenced to 210 months in federal prison followed by a lifetime of supervised release for receipt of child pornography announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On October 22, 2015, Tucker pleaded guilty to the charge. By pleading guilty, Tucker admitted that from January 2105 until September 2015, he downloaded images and videos involving child pornography from the Internet.
In September 2015, federal authorities arrested Tucker following the execution of a search warrant at his residence. A subsequent forensics examination of seized materials, including the defendant’s computer and related media, revealed the presence of approximately 1,425 images and 189 videos depicting child pornography. Tucker has remained in federal custody since his arrest.
This investigation was conducted by the FBI’s San Antonio Child Exploitation Task Force. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Restaurant Owner Indicted for Illegal Firearms, SilencersRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Auxvasse, Mo., man has been indicted by a federal grand jury for illegally possessing 21 firearms and three firearm silencers.
Billy Bush Owen, 53, of Auxvasse, was charged in a two-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Feb. 10, 2016. That indictment was unsealed and made public today upon Owen’s arrest and initial court appearance. Owen is the owner of Panhead Billy’s BBQ in Kingdom City, Mo.
The federal indictment charges Owen with one count of being a felon in possession of firearms and one count of possessing three unregistered firearm silencers.
Owen, who has been convicted of a felony, allegedly was in possession of 21 firearms on Dec. 9,2015, including handguns, rifles and shotguns, as well as three silencers. Under federal law, it is illegal for anyone who has been convicted of a felony to possess any firearms (including silencers) or ammunition.
Owen also was charged with possessing three silencers that were not registered to him.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Callaway County, Mo., Sheriff’s Department and MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group).
Republic Man Sentenced to 15 Years for MethRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Republic, Mo., man was sentenced in federal court today after police officers who stopped to help with his stalled vehicle discovered methamphetamine in the back seat.
William Cruz Martinez, 40, of Republic, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years and eight months in federal prison without parole.
On Sept. 28, 2015, Martinez pleaded guilty to possessing methamphetamine with the intent to distribute. Martinez admitted that he was in possession of a total of 148.05 grams of methamphetamine when he was approached by a Springfield police officer on Oct. 1, 2013.
According to court documents, Martinez’s 1999 Chevrolet Tahoe was stopped at a flashing red light at the intersection of Fremont Street and Bennett Avenue in Springfield. The Tahoe appeared to be stalled, so the officer activated his emergency lights to warn oncoming traffic and approached Martinez, the driver. Martinez appeared nervous and stated that he was having car trouble. After checking his identity information, the officer told Martinez that he was free to leave and asked him if he needed his vehicle towed. Martinez said he would have a friend come and help him. The officer told Martinez that he would standby in his vehicle until his friend arrived, so other motorists would not strike him, and Martinez thanked him.
As the officer started walking towards his patrol vehicle, another officer motioned to him to look in the back passenger seat of Martinez’s vehicle. The officer saw in plain view a clear plastic bag containing methamphetamine on the passenger side back seat. Martinez grabbed the plastic bag and attempted to hide or destroy it. Officers pulled Martinez out of the vehicle, at which time he dropped the bag, which was recovered by one of the officers.
During a search of the vehicle, officers found a lunchbox under the hood, inside the air filter box. Inside the lunch box were clear plastic bags containing methamphetamine, individually packaged for distribution. Officers seized a total of 148.05 grams of methamphetamine from Martinez’s vehicle.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
President and Chief Financial Officer of Charlotte Area Payroll Services Company Sentenced to Prison in Connection with $2 Million Fraud Against ClientsRead the Press Release
CHARLOTTE, N.C. –The President and Chief Financial Officer (CFO) of a Charlotte-based payroll services company were sentenced to prison today by Chief U.S. District Judge Frank D. Whitney, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Jerry Wayne Overcash, 67, of Charlotte, and John Bernard Thigpen, 60, of Rock Hill, S.C., were sentenced to 46 months and 21 months in prison, respectively, for stealing over $2 million from client companies and using the money to fund exorbitant salaries. In addition to the prison term, they were each ordered to serve two years of supervised release and to jointly pay $1.3 million as restitution to the victim client companies. The Court will enter a final restitution amount in 90 days, to allow any additional eligible victims to submit their claims.
The company’s co-founder and Chairman of the Board, Frank Alton Moody, II, 56, of Arden, N.C., was indicted in March 2016 for his role in the fraudulent scheme.
U.S. Attorney Rose is joined in making today’s announcement by Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
“Overcash and Thigpen were integral members of an elaborate financial scheme that ripped off their clients’ money and defrauded the federal government. A prison sentence is the only punishment befitting of these two professional scam artists,” said U.S. Attorney Rose.
“The fraud scheme executed by the conspirators is an egregious story of countless lies and endless greed. They ignored their fiduciary responsibilities to their clients and left many of them holding the bag, while they stuffed their pockets. They were entrusted as professionals and to represent their client’s interests with respect to the Internal Revenue Service, and they abused this trust by ignoring their responsibilities and engaging in theft. IRS Criminal Investigation with our law enforcement partners remain committed to pursuing individuals like Overcash and Thigpen, and seeing that they face justice,” said Special Agent in Charge Holloman.
“The U.S. Postal Inspection Service is committed to investigating and bringing to justice those who prey on innocent victims for their selfish gain. We value the collaboration with our law enforcement partners to protect the American Public,” said Inspector in Charge Noyes.
According to documents filed in court and today’s sentencing hearings, Thigpen, a Certified Public Accountant, was hired in December 2010 to serve as the CFO of CenterCede Services Inc. (CenterCede), a payroll services company with clients in Charlotte and elsewhere. CenterCede was established in August 2010 by Overcash and Moody, to assume the business operations of another payroll services company the two men previously owned and operated, “The Resource Solutions Group” (TRSG). TRSG had been shut down by IRS in August 2010, for failing to pay more than $9 million in federal payroll taxes TRSG collected from its clients.
Court documents show that from November 2010 to November 2011, CenterCede purportedly provided payroll preparation and processing services to its clients. As such, CenterCede collected funds from its clients to pay the client companies’ federal tax obligations, gross payroll for the clients’ employees, worker’s compensation, and unemployment insurance, among other moneys, as well as fees due to CenterCede. According to court records, throughout the relevant time period, Thigpen, with oversight from Overcash and Moody, supervised the preparation of tax returns on behalf of client companies. Contrary to their representations to clients, the conspirators did not pay the clients’ federal taxes in appropriate amounts and by the applicable deadlines. Instead, according to court records, Moody, Overcash and Thigpen diverted the funds to pay their own exorbitant salaries and to cover growing liabilities, including the tax liabilities of other CenterCede clients. To keep the scheme afloat, the conspirators paid only those obligations necessary to keep their ongoing cash flow crisis a secret from clients.
As reflected in court documents, the conspirators favored what they called “priority” clients and attempted to keep those priority clients from learning about monthly cash shortfalls by frequently paying those clients’ obligations ahead of other non-priority clients. “Priority” clients generally had large payrolls with deposits necessary to fund CenterCede’s short-term cash needs and to keep the scheme afloat. Court records show that when clients inquired about failures to pay their obligations, the three conspirators took steps to conceal the fraud by providing false excuses and misleading explanations. Court records show that in the second and third quarters of 2011, Thigpen, Overcash and Moody defrauded CenterCede’s payroll clients of more than $2 million dollars. At the same time that the conspirators failed to pay the tax obligations of CenterCede’s clients, Overcash and allegedly Moody each continued to draw a $240,000 annual salary from CenterCede.
In announcing today’s sentences, Judge Whitney said that the Court wanted to “send a message to others entrusted with third parties’ money, and anyone who is a fiduciary of other people’s money.” Judge Whitney noted that Thigpen “learned his lesson the hard way.” Judge Whitney also said that Overcash “committed a serious crime that victimized a lot of businesses and individuals, and the Internal Revenue Service” and that Overcash’s conduct resulted in “a lot of people being severely hurt.”
Thigpen and Overcash previously pleaded guilty to wire fraud charges. Moody is currently charged with one count of conspiracy and one count of wire fraud and has been released on bond. The conspiracy charge carries a maximum of 5 years in prison and a $250,000 fine. The wire fraud charge carries a maximum of 20 years in prison and a $250,000 fine. All charges against Moody are allegations and he is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The investigation for the case is being handled by USPIS and IRS-CI. Assistant U.S. Attorneys Corey F. Ellis and Taylor Phillips of the U.S. Attorney’s Office, in Charlotte are in charge of the prosecution.
Port Charlotte Man Found Guilty of Conspiracy to Possess with Intent to Distribute MarijuanaRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces today that a federal jury has found Nicholas Jakimer (55, Port Charlotte) guilty of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana. He faces a mandatory minimum term of 5 years, up to 40 years, in federal prison. His sentencing hearing is scheduled for July 27, 2016.
Jakimer was indicted on April 15, 2015.
According to testimony and evidence presented at trial, Jakimer conspired with others to bring marijuana from Arizona to Southwest Florida for distribution. Jakimer funded the operation and recruited customers, who bought the marijuana on a wholesale basis.
This case was investigated by the Florida Highway Patrol and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Robert P. Barclift.
Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud SchemeRead the Press Release
A licensed physician who worked for a Detroit-area medical practice pleaded guilty today for his role in a $2.4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Ali Elhorr, M.D., 47, of Dearborn, Michigan, pleaded guilty before U.S. District Judge Nancy G. Edmunds of the Eastern District of Michigan to one count of conspiracy to commit health care fraud. A sentencing hearing is scheduled for Aug. 16, 2016.
Elhorr worked at House Calls Physicians P.L.L.C., which was located in Allen Park, Michigan. According to admissions in his plea agreement, from approximately September 2009 to September 2012, Elhorr conspired with others, including his brother, Dr. Hicham Elhorr, to commit health care fraud by agreeing to serve as a “supervising” physician for unlicensed individuals purportedly providing in-home physician services. The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, Elhorr and the other licensed physicians had not treated the beneficiaries, he admitted. The visits were then billed as if performed by the licensed physicians, according to the plea.
Elhorr admitted that between approximately March 2008 and September 2012, House Calls Physicians billed Medicare more than $11.5 million for the cost of physician home services. Of that amount, Elhorr admitted that he caused the submission of approximately $2.4 million in false and fraudulent claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. Former Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen, F. Turner Buford and Shubhra Shivpuri of the Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS’s Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Philadelphia Woman Charged with Stealing Dead Relative's BenefitsRead the Press Release
PHILADELPHIA - Martha Stanley, 47, of Philadelphia, Pennsylvania, was charged by indictment, unsealed today, with three counts of wire fraud, one count of theft of government funds, and one count of social security fraud, announced United States Attorney Zane David Memeger. According to the indictment, the defendant received retirement benefits intended for a deceased relative after her relative’s death in June 2005. The defendant’s alleged actions resulted in a loss to the government of approximately $102,126.
If convicted, defendant Martha Stanley faces a statutory maximum sentence of up to 75 years in prison, up to three years of supervised release, restitution to the government of $102,126, a possible fine, and a $500 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oregon Man Convicted for Unlawfully Occupying Federal LandRead the Press Release
EUGENE, Ore. - On April 18, 2016 a federal jury in Eugene, Oregon, convicted Kenneth Medenbach, 63, of Crescent, Oregon, for unlawful occupying federal lands managed by the U.S. Bureau of Land Management (BLM).
In May 2015, Medenbach delivered a letter to BLM claiming “adverse possession” of 320 acres of federal public lands in Josephine County, Oregon. Medenbach erected a small cabin on public lands along a BLM road and refused to remove it despite repeated warnings by BLM. BLM regulations provide that a person may not camp or occupy the same site for more than 14 days without authorization. Medenbach was later charged with unlawful occupation and illegal camping.
Medenbach argued that the public land he was occupying did not belong to the United States because the federal government did not have constitutional authority to possess public lands in Oregon. Medenbach also argued that federal courts did not have authority to interpret the U.S. Constitution. U.S. District Judge Michael McShane rejected both legal claims and the jury convicted him on both of the charges at trial. Judge McShane ordered the removal of Medenbach’s illegal cabin after the jury verdict.
Medenbach, will be sentenced on August 1, 2016. He faces up to one year in prison and a $1,000 fine.
This case was investigated by the U.S. Bureau of Land Management and prosecuted by Assistant U. S. Attorney Douglas W. Fong.
New Carrollton Man Charged in Sex Trafficking SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Jason David Young, a/k/a “J Bird,” “Bird,” and “Chris,”, age 32, of New Carrollton, Maryland today on charges arising from sex trafficking. The original indictment was returned on August 25, 2015 charging Young with being a felon in possession of firearms. Today’s superseding indictment adds charges of sex trafficking and coercion.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Gary Gardner of the Howard County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Howard County State’s Attorney Dario Broccolino.
According to the seven count superseding indictment, Young was a pimp who trafficked at least four women who were Maryland residents to engage in sex for money. Young directed three of the women to deliver drugs to individuals, including customers, and also provided drugs to women who worked for him, including crack cocaine and opioids. Young used violence to force at least three of the women to engage in sex for money, and directed women working for him to also use violence.
The indictment alleges that Young and another individual transported the women working for him to hotel rooms and residences occupied by customers. Young persuaded and coerced one woman to travel from Maryland to Virginia on February 27, 2014, and persuaded and coerced two women to travel from Maryland to Tennessee from January 18 to 21, 2014.
The indictment further alleges that from August to December 15, 2014, two of the women stole handguns from an individual and gave them to Young. Young had previously been convicted of felonies and was prohibited from possessing the firearms.
Young faces a mandatory minimum of 15 years and a maximum of life in prison on each of two counts of being a felon in possession of a firearm, and on each of three counts for sex trafficking; and 20 years in prison on each of two counts for coercion and enticement. An initial appearance is expected later this week in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore; Montgomery County, Prince George’s County and Howard County Police Departments, and Prince George’s County and Howard County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, who are prosecuting the case.
Mt. Vernon Man Sentenced to Six Years for Robbing Two PharmaciesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Steven C. Chaput, 40, of Mt. Vernon, Maine was sentenced today in U.S. District Court to six years in prison to be followed by three years of supervised release for committing two pharmacy robberies. He was also ordered to pay $726 in restitution.
On February 7, 2015, Chaput drove Rudger S. Ellis to the Rite Aid Pharmacy located on North Belfast Avenue in Augusta, Maine. Ellis entered the pharmacy wearing a hooded gray sweatshirt, blue and white athletic pants, and gloves. He had covered his face with a plaid cloth. Ellis approached the counter and demanded that the pharmacist give him oxycodone, Oxycontin, and Ritalin. He told the pharmacy employees to hurry up and said that he had a gun. Ellis absconded with six bottles containing oxycodone. Chaput was the lookout for Ellis and the getaway driver.
On February 18, 2015, Chaput drove Ellis to the Rite Aid Pharmacy located on Spring Street in Gardiner. Ellis robbed that pharmacy again wearing a hooded sweatshirt and gloves and covering his face with a plaid cloth. He approached the pharmacy counter and demanded oxycodone 30 milligram pills. He repeatedly told pharmacy employees to “hurry” and several times commanded: “now, now, now!” Ellis absconded with 11 bottles of oxycodone. Chaput was once again the lookout for Ellis and the getaway driver.
Ellis was sentenced on April 6, 2016, to five years in prison and three years of supervised release.
The investigation was conducted by the Augusta Police Department, the Gardiner Police Department and the Federal Bureau of Investigation.
Montana Man Sentenced to Prison for Marijuana Manufacturing, Tax Evasion and Weapons ChargesRead the Press Release
A Lincoln, Montana, man was sentenced today to five years in prison for manufacturing marijuana, being a felon in possession of a firearm and tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael W. Cotter for the District of Montana.
Dennis Peiker, 61, was sentenced by U.S. District Court Judge Brian Morris for the District of Montana to serve 60 months in prison, followed by four years of supervised release and ordered to pay $409,819 in restitution to the Internal Revenue Service (IRS). Following a jury trial in August 2015, Peiker was convicted of manufacturing more than 100 marijuana plants. In September 2015, Peiker pleaded guilty to two counts of felon in possession of a firearm and one count of tax evasion. Judge Morris ordered Peiker to forfeit all firearms seized by law enforcement authorities.
Peiker evaded the payment of more than $628,000 in federal income tax, penalties and interest for the years 2002 through 2009 by concealing the true nature of his assets, making false statements to IRS officials, and placing funds and property in the names of others. Peiker was previously convicted in 1999 of filing false federal income tax returns. Despite the fact that Peiker is a convicted felon and therefore prohibited from possessing firearms, law enforcement agents seized ammunition and multiple firearms, including a semi-automatic pistol, two single-shot rifles, three automatic rifles and a shotgun, from his residence on two separate occasions in 2011 and 2015. Additionally, when Peiker was arrested in April 2015 following his indictment on the tax evasion charge, law enforcement agents discovered more than 100 marijuana plants at his residence.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Cotter commended special agents of IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lewis and Clark County Sheriff’s Office as part of the Missouri River Drug Task Force, who investigated the case, and Assistant U.S. Attorneys Paulette Stewart and Chad Spraker and Trial Attorney John Mulcahy of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Mill Owner Sentenced to Prison for Purchases and Sales of Stolen Figured Maple from National ForestRead the Press Release
A Winlock, Washington wood buyer was sentenced today in U.S. District Court in Tacoma to six months in prison, six months of home detention and three years of supervised release and $159,692 in restitution for violating the Lacey Act by trafficking in big leaf maple illegally cut on national forest land, announced U.S. Attorney Annette L. Hayes. HAROLD CLAUSE KUPERS, 48, owner and operator of a now defunct company, J & L TONEWOODS, admitted to purchasing multiple cuts of wood without requiring the seller to show a valid Specialized Forest Products Permit, as required by law. KUPERS pleaded guilty in November 2015, admitting he suspected the wood had been illegally cut in the Gifford Pinchot National Forest. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “You were a central figure in what made this all [the stolen maple trade] work….You knew you were getting stolen wood, but you hid behind ignorance.”
“As long as unscrupulous mill owners like this defendant create a market for poached wood, our protected forests are at risk,” said U.S. Attorney Annette L. Hayes. “This defendant was effectively a ‘fence’ for stolen goods. In his case not stolen jewelry or electronics, but stolen publicly owned and irreplaceable natural resources.”
According to records in the case, in April 2012, law enforcement officers with the U.S. Forest Service met with KUPERS and specifically informed him that he was required by Washington law to review Specialized Forest Products Permits for all persons from whom he purchased maple. Despite being put on notice, between April 2012 and March 2014, KUPERS continued to purchase figured maple without requiring the harvesters to display a Specialized Forest Products permit. KUPERS then sold this figured maple to purchasers in interstate commerce for total revenues of $499,414.
Three men who illegally cut the wood previously pleaded guilty to theft of public property or conspiracy to steal public property for illegally harvesting the maple trees in the Gifford Pinchot National Forest in November and December 2011 and May 2012. James Miller, 36, of Morton, Washington was sentenced in February 2016 to six months in prison and three years of supervised release. Ryan Justice, 28, of Randle, Washington, was sentenced in December 2015 to 15 months in prison. Kevin Mullins, 56, of Packwood, Washington is scheduled for sentencing June 6, 2016.
The case is being investigated by the U.S. Forest Service. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs.
Mexican Drug Trafficker Sentenced to Eight Years in PrisonRead the Press Release
PHILADELPHIA – Cesar Vega-Castro, 34, a Mexican national formerly residing in Tuscon, Arizona, was sentenced today to 96 months in prison for drug trafficking and money laundering. Vega-Castro was an essential member of an international drug trafficking organization which brought thousands of kilograms of marijuana to the United States from Mexico and laundered millions of dollars of drug proceeds. Vega-Castro pleaded guilty on May 18, 2014 to conspiracy to distribute 1,000 kilograms or more of marijuana, conspiracy to commit money laundering, and one count of money laundering.
In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered a $300 special assessment and five years of supervised release.
As a result of the investigation, 11 members or associates of this organization were federally prosecuted. Of those, seven were convicted in the Eastern District of Pennsylvania; two were convicted by the Middle District of North Carolina; and one was convicted in the District of New Jersey.
The case was prosecuted by Assistant United States Attorney Maria M. Carrillo.
Marion County, WV woman pleads guilty to cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bertha Horton, 55, of Fairmont, West Virginia, pled guilty to cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Horton, also known as “Peaches,” sold cocaine in May 2014 near East Fairmont Junior High School in Marion County, West Virginia. She pled guilty to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location.” She faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Three Rivers Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Convicted of Assault for Trying to Run over Deputy U.S. Marshal with a Minivan Sentenced to 8 Years in Federal PrisonRead the Press Release
LOS ANGELES – A man who was found guilty of assaulting a Deputy U.S. Marshal by trying to run him over with a minivan has been sentenced to 96 months in federal prison.
Keith Leon Smith, 47, of Carson, was sentenced yesterday by United States District Judge R. Gary Klausner, who said the defendant was “really lucky on two grounds” – that he did not kill the Deputy Marshal and that he was not killed by law enforcement as he assaulted the Deputy Marshal.
Smith was found guilty by a federal jury on January 14 of one count of assaulting a federal officer with a deadly and dangerous weapon.
According to the evidence presented during a three-day trial in United States District Court, six Deputy U.S. Marshals went to a residence on East 220th Street in Carson, where they believed Smith was residing, on March 11, 2015. The Deputy Marshals were conducting an investigation with the goal of taking Smith into custody after a federal judge in 2013 had issued a bench warrant. Smith was wanted because he had violated the terms of his supervised release, after serving more than seven years in prison for being convicted of manufacturing methamphetamine.
While conducting surveillance, the Deputy Marshals observed Smith exit the residence, get into a minivan and leave the location. The Deputy Marshals, who were in several vehicles, followed Smith and executed a traffic stop, blocking his van. As the Deputy Marshals approached the minivan that Smith was driving and identified themselves as law enforcement officers, Smith reversed his vehicle toward some of the Marshals Service vehicles. Smith then suddenly accelerated his vehicle toward one of the Deputy Marshals, who was in front of the minivan. The Deputy Marshal, now in the way of the oncoming minivan, fired his weapon at the windshield and fell backward onto the ground.
Smith briefly stopped the vehicle as the shots hit the windshield, and then accelerated the minivan toward the Deputy Marshal, who was then lying on the ground. The Deputy Marshal was able to jump out of the way of the minivan and fire several shots at the vehicle. According to court documents, the Deputy Marshal “believes that he would be dead if he had not stumbled out of the way of defendant’s oncoming vehicle.”
“Mr. Smith took an inherently dangerous situation and made it much worse for everyone involved,” said United States Attorney Eileen M. Decker. “There are serious consequences to dangerous and willful acts, such as intentionally driving a vehicle at a Deputy Marshal who is carrying out his lawful duties. His decision to put law enforcement officers in jeopardy has earned him this lengthy prison sentence.”
Smith then sped away as the Deputy Marshals gave chase. But, due in part to his dangerous driving, which included swerving into oncoming traffic, Smith was able to elude capture that day. However, deputies with the Los Angeles Sheriff’s Department located Smith’s minivan the next day and took him into custody. During a subsequent interview with Sheriff’s detectives, Smith stated that he did not stop for the Marshals because he did not “want to go back to prison.”
The investigation in the assault case was conducted by the Federal Bureau of Investigation and the Los Angeles County Sheriff’s Department.
The government was represented at yesterday’s sentencing by Assistant United States Attorney Anil J. Antony of the General Crimes Section.
Loan Officer and De Pere Couple Indicted in Federal Court for Conspiracy to Commit Bank FraudRead the Press Release
United States Attorney Gregory J. Haanstad, of the Eastern District of Wisconsin announced that the grand jury has today indicted Ronald Van Den Heuvel (age: 62) of De Pere, his spouse Kelly Van Den Heuvel (age: 52) of De Pere and Paul Piikkila (age: 53), of Appleton on a series of criminal charges based on a scheme to fraudulently obtain loans from Horicon Bank, a federally insured financial institution operating at various Wisconsin locations. The indictment alleges that these loans were obtained on the basis of false representations.
In 2008 and 2009, Ronald Van Den Heuvel was a Green Bay businessman operating various business entities. Kelly Van Den Heuvel was his wife who also had her own corporation. Paul Piikkila was a loan officer at Horicon Bank.
The indictment alleges that Mr. Piikkila approved a series of loans totaling more than $1 million for the benefit of the Van Den Heuvels and their business entities. Horicon Bank had instructed Mr. Piikkila not to loan any money to Mr. Van Den Heuvel so none of the loans discussed in the indictment are to him by name. Many of the loans were made to straw borrowers who did not receive the money and were not expected to pay it back. The loans were not used for the business purposes represented on the loan applications and the collateral offered by Mr. Van Den Heuvel was inadequate to secure the loans.
Count One of the indictment charges all three defendants with conspiring to carry out this illegal scheme in violation of Title 18 United States Code § 371. The maximum penalty for Count One is imprisonment for not more than five years, a fine of not more than $250,000, or both, plus a mandatory $100 special assessment and a period of supervised release not to exceed three years.
Counts Two, Four, Six, Eight, Ten, Twelve and Thirteen each charge Ronald Van Den Heuvel with executions of a bank fraud scheme in violation of Title 18 United States Code § 1344. Kelly Van Den Heuvel is charged only in Count Ten. On each of these counts, a convicted defendant would face imprisonment for not more than 30 years, a fine of not more than $1 million, or both, plus the mandatory $100 special assessment and a term of supervised release not to exceed five years.
Counts Three, Five, Seven, Nine, and Eleven each charge Ronald Van Den Heuvel with making false statements to influence the action of a federal insured financial institution on a loan in violation of Title 18 United States Code § 1014. Kelly Van Den Heuvel is charged only in Count Eleven. Anyone convicted on any of these counts, would face imprisonment for not more than 30 years, a fine of not more than $1 million, or both, plus a mandatory $100 special assessment and a term of supervised release not to exceed five years.
This case is being investigated by the Federal Deposit Insurance Corporation. The case will be prosecuted by Assistant United States Attorneys Mel S. Johnson and Matthew D. Krueger.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Leader in $1.5 Million Fraudulent Check Cashing Scheme Pleads GuiltyRead the Press Release
Baltimore, Maryland – Friday James, age 43, of Laurel, Maryland, pleaded guilty today to conspiracies to commit bank fraud and make false claims, and to aggravated identity theft arising from schemes to defraud financial institutions and make false claims for tax refunds.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to his plea agreement, from approximately 2007 through November, 2013, James conspired with others to defraud various financial institutions by depositing counterfeit and stolen checks and withdrawing the funds before the deposits were identified as fraudulent. James became involved in the scheme through an individual he worked with buying and selling cars. James and this individual were originally from Nigeria and the individual had loaned James money. Initially James accompanied the individual (the co-conspirator) to the State Office Building to complete paperwork and register businesses. The two men would then obtain post office box addresses and open bank accounts for the businesses. They would then deposit stolen, altered, and counterfeit checks into the accounts and withdraw the funds before the checks could bounce.
The men used other individuals to conduct many of the transactions, including LaKeisha Butler, Kesa Baker, Carlvester Davis and others. According to the plea, all of these individuals opened post office boxes for businesses, in most cases using the identities of other people, including fake identifications bearing the picture of the co-conspirator and the personal information of an identity theft victim. These same individuals also opened bank accounts for the businesses, again often using stolen identities and fake identifications. The paperwork for these transactions was prepared by James or the co-conspirator, and the mailbox keys, checkbooks and debit cards were provided back to them. Only James or the co-conspirator picked up the mail from the post office boxes.
Additional co-conspirators were recruited to deposit the counterfeit checks and to withdraw the money, including Naimah Okail, Isaac Kusimo, and others. James and the co-conspirator would pick up the individuals and provide them with a check to deposit, or a check to cash, usually completing the checks in front of the cashers and obviously signing a name which was not theirs. James and/or the co-conspirator would transport the recruited individual to a bank, where that person used his or her own identification and the checks provided. The checks often had a telephone number written on the checks, which would be answered by James or his co-conspirator if the bank called to confirm that the check was genuine. Once the check was cashed, the money would be given to the James or the co-conspirator, and a portion (usually 5-10%) paid to the recruit.
During James’ participation in the bank fraud conspiracy, he and his co-conspirators obtained extensions of credit from federal insured financial institutions of $1,519,429.52 and attempted to obtain extensions of credit of $3,149,616.10. More than 10 financial institutions and individuals were victimized by this scheme.
From March, 2011 through in or around October 2013, James knew that electronic tax refunds were being deposited into the business bank accounts, and that since the business was fraudulent, no legitimate tax refunds would be due the business. He repeatedly withdrew these funds immediately after they were deposited. James and his co-conspirators obtained $389,592.05 in false claims for stolen identity tax refunds, and another $957,377.05 in false claims for tax refunds were submitted but not paid. The total loss foreseeable to James was between $550,000 and $1,500,000.
As part of his plea agreement, James has agreed to the entry of a restitution order for the full amount of the victims’ actual losses during the time James was participating in the scheme, currently computed to be approximately $1,909,021.57. That restitution shall be due and payable immediately upon sentencing.
Co-defendants LaKeisha Butler, age 33, of Columbia, Maryland; Kesa Baker, age 43, of Baltimore; Naimah Okail, age 35, of Baltimore; and Isaac Kusimo, age 30, of Takoma Park, Maryland have all pleaded guilty to their roles in the scheme and are awaiting sentencing. The remaining defendants are scheduled for trial on June 6, 2016.
James faces a maximum of 30 years in prison and a $1,000,000.00 fine for bank fraud conspiracy; 10 years in prison and a $250,000.00 fine for the false claims conspiracy; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. Chief U.S. District Judge Catherine C. Blake scheduled his sentencing for August 2, 2016, at 9:00 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service and IRS – CI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Latin Kings Gang Leader Sentenced to 70 Months in Prison for Conspiring to Steal $180,000 from IRSRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ELISEO ORTIZ, 50, to 70 months in prison for conspiring to file false state and federal tax returns and claim tax refunds. Co-defendants STACEY JEAN BERGHAMMER, 34, who was sentenced yesterday to time served, and SHANNON LEE TROLLEN, 38, each pleaded guilty to one count of conspiracy to file false claims. ORTIZ, who pleaded guilty on September 18, 2015, to one count of conspiracy to file false claims, was sentenced today before U.S. District Judge Susan R. Nelson in St. Paul, Minn.
According to his guilty plea and documents filed in court, between 2008 and at least April 28, 2010, ORTIZ was incarcerated at Stillwater Correctional Facility, where he recruited and directed numerous co-conspirators to provide names and social security numbers to be used in preparing and filing the false tax returns. In addition, ORTIZ recruited help from outside the prison to execute the scheme, including help from co-defendants BERGHAMMER and TROLLEN. ORTIZ’ co-conspirators were asked to provide addresses for unincarcerated trusted associates who could transfer money from tax refunds to the defendants and other co-conspirators. ORTIZ provided the information he obtained from the co-conspirators to BERGHAMMER or TROLLEN, who would then complete and file the false tax returns that fraudulently claimed refunds to which the recruits were not entitled.
According to his guilty plea and documents filed in court, ORTIZ filed false income tax returns for tax years 2007, 2008 and 2009 by claiming false wages, withholdings, and other tax credits. ORTIZ and other co-conspirators obtained payments for their roles in the scheme in various ways. Payments were sometimes obtained through a direct deposit, debit cards or by having the tax refund check sent to an associate who would then cash the check and split the money between the co-conspirator, the defendants, and others.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case was prosecuted by Assistant U.S. Attorney Michael L. Cheever.
Defendant Information:
ELISEO ORTIZ, 50
Bartlett, Ill.
Convicted:
- Conspiracy to file false claims, 1 count
Sentenced:
- 70 months in prison
- Three years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600