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14 April 2016
Former Sheriff’s Department Employee Evades Taxes on Money Earned Selling Dangerous Diet DrugsRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – April 14, 2016
SAN DIEGO – Former San Diego Sheriff’s Department employee Francisco Terriquez pleaded guilty today to tax evasion and making a false statement to a federal officer, admitting that he ran a business selling millions of dollars of dietary supplements and failed to declare any of the proceeds as income on his federal tax return.
Terriquez, a 19-year veteran of the Sheriff’s Department, spent tens of thousands of dollars shipping the dietary supplements to stores and customers throughout the United States. Terriquez operated his business out of several storage units, which he rented under a fake name. After obtaining a search warrant, federal agents searched Terriquez’s storage units and discovered hundreds of vials of dietary supplements containing the controlled substance sibutramine.
According to the Food and Drug Administration, sibutramine is an obesity drug that was withdrawn from the U.S. market in October 2010 due to studies showing an increased risk of heart attack and stroke among those using the drug. Terriquez never notified his customers that the dietary supplements he sold contained a dangerous drug.
From 2011-2014, Terriquez failed to report over a half million dollars in income he received from his illegal business. As part of his plea, Terriquez agreed to pay restitution to the Internal Revenue Service for the full amount of taxes owed. Terriquez will appear for sentencing on July 21, 2016 at 9 a.m. before U.S. District Judge Marilyn L. Huff.
“As a member of a law enforcement agency for decades, this defendant knew better,” said U.S. Attorney Laura Duffy. “He acted as if the rules did not apply to him, and now he is finding out otherwise.”
“As a former employee of a law enforcement agency, Mr. Terriquez is held to a higher standard and knew that he was operating an illegal business,” said FBI Special Agent in Charge Eric S. Birnbaum. “Today's plea will hold Mr. Terriquez accountable for his unlawful conduct and serve as a reminder that when purchasing dietary supplements through the internet, ask questions and conduct your own due diligence before purchasing from unknown individuals and/or companies.”
DEFENDANT: Case Number 15-CR-2298-H
Francisco Terriquez Age: 43 Chula Vista, CA
SUMMARY OF CHARGES
Tax Evasion – Title 26, U.S.C., Section 7201
Maximum penalty: 5 years’ imprisonment and $250,000 fine
False Statement – Title 18, U.S.C., Section 1001
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigation
Former Owner of Defense Contracting Businesses Sentenced to 57 Months in Prison for Illegally Exporting Military Blueprints to India Without a LicenseRead the Press Release
The former owner of two New Jersey defense contracting businesses was sentenced today to 57 months in prison for conspiring to send sensitive military technical data to India, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Paul J. Fishman of the District of New Jersey.
Hannah Robert, 50, of North Brunswick, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson of the District of New Jersey to conspiracy to violate the Arms Export Control Act by exporting to India military technical drawings without prior approval of the U.S. Department of State.
“Hannah Robert circumvented the U.S. government and provided export-controlled technical data related to various types of military technology to an individual in India,” said Assistant Attorney General Carlin. “We will vigorously prosecute and bring to justice those who abuse their access to sensitive defense information and violate the Arms Export Control Act.”
“Hannah Robert conspired to send to another country thousands of technical drawings of defense hardware items and sensitive military data,” said U.S. Attorney Fishman. “She was also charged with manufacturing substandard parts that were not up to spec, in violation of the contracts she signed with the Department of Defense. Enforcement of the Arms Export Control Act is critical to the defense of our country.”
According to documents filed in this case and statements made in court:
In June 2010, Robert was the founder, owner and president of One Source USA LLC, a company located at her then-residence in Mount Laurel, New Jersey, that contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts. In September 2012, Robert opened another defense company, Caldwell Components Inc., based at the same address. Along with a resident of India identified only as P.R., Robert owned and operated a third company located in India that manufactured defense hardware items and spare parts.
From June 2010 to December 2012, Robert conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, military attack helicopters and F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On Aug. 23, 2012, P.R. emailed Robert requesting the technical drawing for a particular military item. P.R.’s email forwarded Robert an email from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s email, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
In October 2010, Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, New Jersey, church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to and a quote for a trans-shipper known to Robert as a broker of defense hardware items for an end user in Pakistan. This individual used a UAE address for shipping purposes. Later that day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
On Oct. 5, 2012, Robert e-mailed P.R. with the subject line “Important.” The e-mail referenced the Pakistan trans-shipper, a separate potential sale to individuals in Indonesia and the church website: “Please quote [the Pakistan trans-shipper] and Indonesia items today[.] [Dr]awings I cannot do now as if the size exceeds then problem, I should be watching what I upload, will do over the weekend[.] Ask me if you need any drawing . . . . Talk to you tomorrow . . . .”
There were also quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed that certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s United States customers, failed, Robert and P.R. provided the principal of their customer with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Until November 2012, Robert was an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA in order to conceal her criminal conduct.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
Assistant Attorney General Carlin joined U.S. Attorney Fishman in thanking the special agents of the DoD’s Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert; and special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Fabiana Pierre-Louis and L. Judson Welle of the District of New Jersey, with assistance from the National Security Division’s Counterespionage Section.
Former Owner of Defense Contracting Businesses Sentenced to 57 Months in Prison for Illegally Exporting Military Blueprints to India Without A LicenseRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses was sentenced today to 57 months in prison for conspiring to send sensitive military technical data to India, U.S. Attorney Paul J. Fishman and Assistant Attorney General for National Security John P. Carlin announced.
Hannah Robert, 50, of North Brunswick, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count Six of a superseding indictment, which charged her with conspiracy to violate the Arms Export Control Act by exporting to India military technical drawings without prior approval of the U.S. Department of State. Judge Thompson imposed the sentence today in Trenton federal court.
“Hannah Robert conspired to send to another country thousands of technical drawings of defense hardware items and sensitive military data,” U.S. Attorney Fishman said. “She was also charged with manufacturing substandard parts that were not up to spec, in violation of the contracts she signed with the Department of Defense. Enforcement of the Arms Export Control Act is critical to the defense of our country.”
“Hannah Robert circumvented the U.S. government and provided export-controlled technical data related to various types of military technology to an individual in India,” said Assistant Attorney General Carlin. “We will vigorously prosecute and bring to justice those who abuse their access to sensitive defense information and violate the Arms Export Control Act.”
According to documents filed in this case and statements made in court:
In June 2010, Robert was the founder, owner, and president of One Source USA LLC, a company located at her then-residence in Mount Laurel, New Jersey, that contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts. In September 2012, Robert opened another defense company, Caldwell Components Inc., based at the same address. Along with a resident of India identified only as “P.R.,” Robert owned and operated a third company located in India that manufactured defense hardware items and spare parts.
From June 2010 to December 2012, Robert conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, in military attack helicopters, and in F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On Aug. 23, 2012, P.R. e-mailed Robert requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
In October 2010 Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, New Jersey, church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to and a quote for a trans-shipper known to Robert as a broker of defense hardware items for an end user in Pakistan. This individual used a UAE address for shipping purposes. Later that day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
On Oct. 5, 2012, Robert e-mailed P.R. with the subject line “Important.” The e-mail referenced the Pakistan trans-shipper, a separate potential sale to individuals in Indonesia, and the church website: “Please quote [the Pakistan trans-shipper] and Indonesia items today[.] [Dr]awings I cannot do now as if the size exceeds then problem, I should be watching what I upload, will do over the weekend[.] Ask me if you need any drawing . . . . Talk to you tomorrow . . . .”
There were also quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed that certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s United States customers, failed, Robert and P.R. provided the principal of their customer with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Until November 2012, Robert was an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA in order to conceal her criminal conduct.
In addition to the prison term, Judge Thompson ordered Robert to serve three years of supervised release and pay $181,015.27 in restitution.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert; and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton, and L. Judson Welle of the U.S. Attorney’s Office National Security Unit, with assistance from the National Security Division’s Counterespionage Section.
Defense counsel: David E. Schafer Esq., Lawrenceville, New Jersey
Former District of Columbia Police Officer Sentenced to Prison for Obstructing Internal Revenue ServiceRead the Press Release
Filed False Documents with the IRS and Metropolitan Police Department
A former Metropolitan Police Department (MPD) officer and resident of Glenarden, Maryland, was sentenced to 11 months in prison today after a federal jury in the District of Columbia convicted him in October 2015 of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Ishmeal Heru-Bey, formerly known as Jamal Adams, failed to file timely federal income tax returns for the years 2005 through 2012 to report his MPD wages and other income to the Internal Revenue Service (IRS). Between 2006 and 2010, Heru-Bey submitted three IRS Forms W-4 to the MPD on which he falsely claimed that he was exempt from federal income tax withholding. These false forms caused his employer to withhold little or no federal income taxes from his wages during that period. After Heru-Bey was indicted for tax crimes in March 2015, he also filed false income tax returns for the years 2011 through 2014 on which he claimed to have incurred expenses relating to his job with the MPD, including expenses for the use of his personal vehicle, meals and entertainment, uniforms and dry cleaning. Heru-Bey was on paid administrative leave from the police force during those years and did not incur the expenses he claimed on his tax returns. At the sentencing hearing, U.S. District Judge James E. Boasberg for the U.S. District Court for the District of Columbia, who also presided over the trial, found that Heru-Bey intended to cause a loss to the IRS between $40,000 and $100,000.
In addition to the prison term, Heru-Bey was also ordered to serve one year of supervised release and pay restitution to the IRS in the amount of $45,712.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Jeffrey A. McLellan and Melissa S. Siskind of the Tax Division, who prosecuted the case.
Former Corrections Officer at Lexington Federal Prison Pleads Guilty to BriberyRead the Press Release
LEXINGTON, Ky. – A former corrections officer at the Federal Medical Center in Lexington (FMC Lexington) has admitted to smuggling tobacco into the prison, in exchange for payments from an inmate.
On Wednesday, William C. McClelland, 46, pleaded guilty to a bribery charge, before U.S. District Judge Karen Caldwell.
According to his plea agreement, on two occasions during 2015, McClelland smuggled tobacco into the prison for an inmate; he received $1,800 in return.
Prisoners incarcerated in federal correctional facilities, including FMC Lexington, are prohibited from possessing contraband, such as tobacco.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; John F. Oleskowicz, Special Agent in Charge, Department of Justice Office of the Inspector General, Chicago Field Office; and Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Andy Smith prosecuted this case on behalf of the federal government.
McClelland is scheduled to be sentenced on July 28, 2016. The bribery offense carries a maximum punishment of 15 years in prison. Any sentence imposed by the Court, however, will come after the Court has considered the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Accountant Charged with Filing False Tax ReturnRead the Press Release
TULSA , Oklahoma – United States Attorney Danny C. Williams Sr. and Special Agent in Charge R. Damon Rowe of the IRS-Criminal Investigation Dallas field office announced today that Nelson Wade Cagle, an Owasso accountant, has been charged in the United States District Court for the Northern District of Oklahoma with filing a false 2013 income tax return that failed to report money he allegedly stole from his former employer.
A single-count Information charges Nelson Wade Cagle, 32, filed a false Federal Individual Income Tax Return that omitted $583,290 of income from his 2013 return in violation of the Internal Revenue Code, Title 26, United States Code, Section 7206(1).
Cagle faces a maximum sentence of three years imprisonment and a fine of $250,000.
The Information was the result of an investigation by the Internal Revenue Service -Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney R. Trent Shores represents the United States.
The above named individual has been charged with a federal crime or crimes. An Information does not constitute evidence of guilt. An Information is a method of bringing charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
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Five Boston-Area Men Charged with Extortion and GamblingRead the Press Release
BOSTON – Five men were arrested and charged today in the U.S. District Court in Boston with conducting an illegal gambling business, making extortionate loans and collecting loans by extortionate means.
Joseph Yerardi, 62, of Newton; Anthony Corso, 51 of Cambridge; Michael Burke, 45, of Winthrop; Robert Conway, 27, of, Lynnfield; and Michael Habicht, 59 of Boston, were indicted on one count of operating an illegal gambling business from March 2015 through April 2016. Yerardi and Corso were also indicted on three counts of conspiracy to make and making extortionate extensions of credit. In addition, Yerardi, Corso, Burke and Conway were indicted on various counts of conspiring to collect and collecting extensions of credit by extortionate means from six debtors. The defendants will appear before U.S. District Court Magistrate Judge Jennifer C. Boal at 11:30 a.m.
The charge of operating an illegal gambling business provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The extortion charges each provide a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford, and Quincy Police Departments. The case is being prosecuted by Assistant U.S. Attorney Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Final Defendant Pleads Guilty in Adams County Prison Riot CaseRead the Press Release
Jackson, Miss. - Hector Miguel Diaz-Osuna, age 35, originally from Sinaloa, Mexico, entered a guilty plea today, before U.S. District Judge David C. Bramlette III, for the death of a correctional officer during a 2012 prison riot at the Adams County Correctional Center in Adams County, Mississippi, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Don Alway.
The prison riot occurred on May 20, 2012. Several correctional officers were assaulted and one correctional officer died as a result of injuries he received during the assaults. Other correctional officers were held hostage for several hours by the rioters. The total damage to the facility was estimated to be $1,305,142.00.
Diaz-Osuna will be sentenced on June 16, 2016 by Senior U.S. District Judge David C. Bramlette III and faces a maximum penalty of 15 years in prison. Diaz-Osuna was previously convicted of rioting and faces an additional 10 years in prison for that crime.
This case was investigated by the Federal Bureau of Investigation with assistance from the Adams County Sheriff’s Office. Assistant U.S. Attorneys Patrick Lemon and Jerry Rushing prosecuted the case.
Essex Man Sentenced to 17 Years in Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Robert John Wiseman, Jr., age 56, of Essex, Maryland, today to 17 years in prison, followed by lifetime supervised release, for distribution of child pornography. Chief Judge Blake also ordered that upon his release from prison, Wiseman must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Judge Blake enhanced Wiseman’s sentence upon finding that Wiseman had a pattern of sexually abusing minors. Testimony concerning the abuse of minors, who came forward in 1990 and 2013, was presented at today’s sentencing hearing. The victims from 1990 and from 2013 each alleged that Wiseman began sexually abusing them beginning when they were two years old until they were approximately eight or nine years old. The victim from 2013 further stated that Wiseman took pornographic photographs of the victim. Wiseman was never charged or convicted of these allegations.
According to Wiseman’s plea agreement, on July 17, 2014, an undercover Baltimore County Police detective was conducting an online investigation into the sharing of child pornography using file sharing networks. The detective located an IP address on one of the file sharing programs that was sharing at least one video file that the detective knew from previous investigations depicted children engaged in sexually explicit conduct. The detective downloaded the video file and tracked the IP address to the subscriber, a woman who lived in Essex. The detective obtained a search warrant for that address and on September 9, 2014, the search warrant was executed. The subscriber was at the residence along with Wiseman and two others, including a minor child.
During an audio recorded interview, Wiseman told the detective that he used a file sharing program on his desktop computer to search for and download child pornography. Wiseman also acknowledged that he was aware that other people were able to download files from him using the file sharing network. During the execution of the search warrant, a forensic review was conducted on Wiseman’s desktop computer. The detective located the video he had downloaded, as well as numerous other video and image files depicting children engaged in sexually explicit conduct, including prepubescent children and images of sadistic and masochistic conduct, or other depictions of violence. Law enforcement seized the desktop computer, two laptop computers, and 17 external hard drives, among other items. A subsequent forensic examination of the desktop computer found approximately 20 video files and over 10,000 image files of child pornography. Wiseman must forfeit the computers, hard drives and other digital media seized during the search.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the Baltimore County Police Department, FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.
Eagle Pass City Manager Indicted by Federal Grand Jury for Role in “Pay-To-Play” Bribery Scheme Involving Maverick County ContractRead the Press Release
This afternoon, FBI agents arrested 67-year-old Eagle Pass City Manager Hector Chavez, Sr., on federal bribery and obstruction charges related to his participation in a “pay-to-play” scheme involving a Maverick County landfill contract, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A four-count federal grand jury indictment, unsealed today, charges Chavez with one count each of paying a bribe to an agent of an organization receiving federal funds; falsification of records in a federal investigation; obstruction of justice; and false statement to a federal agent.
The indictment alleges that from about May 2012 through June 2012, Chavez, doing business as Chace Management, paid a total of approximately $20,000 in bribes to a Maverick County commissioner, intending to influence and reward that commissioner for securing a contract for the County landfill project. The indictment also alleges that Chavez forged a personal services contract to conceal from authorities the kickbacks he paid to the Maverick County commissioner; and, that he provided this falsified contract in response to a federal grand jury subpoena in an attempt to obstruct justice. The indictment further alleges that Chavez then made false statements to federal law enforcement agents concerning the legitimacy of this contract.
Upon conviction, Chavez faces up to 20 years in federal prison on the falsification of records and obstruction charges; up to ten years in federal prison for the bribery charge; and, up to five years in federal prison for making a false statement to a federal agent. Chavez is scheduled to have his initial appearance tomorrow at 9:00am in front of U.S. Magistrate Judge Victor Garcia in Del Rio.
This ongoing investigation is being conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Katherine Griffin is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Dominican Man Sentenced After Pleading Guilty to Illegally Reentering the United States After A Previous Deportation, and Other ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Hector Luis Arias-Ramirez, of the Dominican Republic, was sentenced to a time-served sentence after pleading guilty to a three-count indictment charging him with illegally re-entering the United States after having been previously deported, misrepresenting a social security number, and falsely claiming to be a U.S. citizen.
On October 20, 2015, Arias-Ramirez appeared at the Nashua office of the Department of Motor Vehicles and attempted to obtain a New Hampshire driver’s license. Arias-Ramirez had completed the forms necessary for issuance of a license using a name other than his true name and using a false social security number when he was approached by the New Hampshire State Police. Arias-Ramirez told the Trooper that Arias-Ramirez was born in Toa Baja, Puerto Rico.
A New Hampshire State Trooper contacted Immigration and Customs Enforcement – Enforcement and Removal Operations (ICE-ERO) for assistance in identifying the defendant. ICE-ERO Deportation Officers arrived at the DMV and, using a mobile fingerprinting kit, submitted the defendant’s fingerprints for comparison to databases of known fingerprints. The fingerprint impressions were a match to those previously taken from the defendant.
Arias-Ramirez will be deported after serving his sentence. Arias-Ramirez was previously deported to the Dominican Republic in 2012.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the New Hampshire State Police. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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District of Columbia Tax Return Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
A federal grand jury returned an indictment April 12 charging a District of Columbia tax return preparer with 35 counts of aiding in the preparation of false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Joann Little, 59, of Suitland, Maryland, made her initial appearance in the U.S. District Court for the District of Columbia this afternoon on the federal charges. According to the indictment, Little worked at a tax return preparation business called Instant Tax Service, presently operating under the name Speedy Tax Service, which is located at 1002 H Street, NE, in Washington, D.C. The indictment alleges that Little prepared false personal income tax returns for clients for tax years 2009 through 2014. She is alleged to have attached schedules that reported inflated or fictitious deductions, which resulted in fraudulently claimed income tax refunds.
If convicted, Little faces a maximum sentence of three years in prison and a fine of up to $250,000 on each count.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked special agents of Internal Revenue Service–Criminal Investigation, who investigated the case and Trial Attorney Jason Scheff and Assistant Chief Karen Kelly 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.
Credit Card Company Employee Sentenced in Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Godfred Obeng, age 38, of Glen Allen, Virginia today to three years in prison followed by five years of supervised release for conspiring to commit bank fraud, using an unauthorized access device and aggravated identity theft. Judge Hazel also ordered Obeng to pay restitution of $338,548.45.
The sentence 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 John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his plea agreement and court documents, Obeng was an account services specialist at Capital One Bank, which issued credit card accounts to individuals. Beginning in June 2012, Obeng accessed customer accounts to steal the account numbers, cardholders’ names and addresses. Obeng shared this information with coconspirator Leslie Okyere in return for payment. From at least January 2012 to March 2013, other coconspirators used these credit card numbers, belonging to over 50 victims, to make fraudulent purchases by phone with The Home Depot.
For example, coconspirator Awah Essem recruited college students, promising that they could make some easy money. Essem directed the recruits to open a bank account and provide the bank account information to him. Essem told the recruits that money would be transferred into these accounts from The Home Depot. A conspirator would order materials with Home Depot stores, supplying a victim’s credit card information stolen by Obeng. Within a few days, a conspirator canceled the order and requested that the refund be placed on the coconspirator’s debit card, including the debit cards of coconspirators recruited by Essem.
The recruits, including Stanley Nmesirionye, Dosis Feludu and Gideon Turkson, would be required to withdraw the majority of the money from the bank account to give to Essem. The recruit could keep a portion, in some cases as much as $300.
During the course of the fraud scheme, the total loss attributable to Obeng’s conduct was at least $338,548.45.
Bertrand Awah Essem, age 27, of Beltsville, Maryland; Stanley Nmesirionye, age 24, of Owings Mills, Maryland; Dosis Feludu, age 25, of Salisbury, Maryland; Gideon Turkson age 24, of Burtonsville, Maryland and Leslie Okyere, age 33, of Hyattsville, previously pleaded guilty to their participation in the fraud scheme. Essem was sentenced on February 5, 2016 to 27 months in prison and ordered to pay restitution of $264,757.29. The remaining defendants await sentencing.
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 U.S. Department of the Treasury – OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Columbia Man Sentenced for Investor FraudRead the Press Release
Contact Person: Winston Holliday (803)-929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that ROBERT STUART LEBEN, age 53, of Columbia, South Carolina, was sentenced today in federal court in Columbia, South Carolina, for Conspiracy to Commit Wire Fraud, a violation of 18 U.S.C. § 371, in connection with an investor fraud scheme. United States District Judge Mary Geiger Lewis of Columbia sentenced Leben to 40 months of incarceration. Leben also was ordered to pay over $1.8 million in restitution to the individual victims.
Evidence presented at the change of plea hearing established that between 2008 and 2015, Leben controlled the Structured Finance Group (SFG), which purportedly invested in United States Treasury fixed-income securities called “T-STRIPS” on behalf of his clients. Leben developed a plan to buy discounted T-STRIPS and use the difference between the discounted price and the face value to generate income by trading in commodities. Leben used two third party intermediaries between himself and those giving him money to be invested. Records obtained by the FBI show correspondence from Leben to investors confirming the amount handed over and falsely representing to those individuals that they had active balances in their accounts. However, rather than buy T-STRIPS, Leben diverted the bulk of investor money for his own use, including purchasing a $500,000 house, a backyard pool and landscaping worth $180,000, vacations, surgical procedures, and various financial gifts to his family members. The investigation revealed eleven victims who lost approximately $2.3 million, some of which has been recouped.
The case was investigated by the Federal Bureau of Investigation, with assistance from the South Carolina Attorney General’s Office. Assistant United States Attorneys Winston Holliday and Jim May of the Columbia office prosecuted the case.
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Claremore Man Sentenced to 25 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
TULSA, Okla.—Kenneth O’Neal Batten was sentenced today to serve 300 months in federal prison for sexual exploitation of a child, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. In addition to the prison sentence, U.S. District Chief Judge Gregory K. Frizzell ordered Batten to be placed on supervised release for the remainder of his life.
“Today’s prison sentence is a result of the defendant’s unspeakable and heinous acts committed against his young daughter,” said U.S. Attorney Williams. “The Northern District of Oklahoma is committed to protecting a child’s opportunity and right to have a childhood that is free from sexual abuse, trauma, and exploitation.”
Batten, 37, of Claremore, Oklahoma, was charged on September 8, 2015. He pleaded guilty on January 12, 2016.
According to court documents, Batten admitted that, from June 28, 2015 to August 4, 2015, he produced videos of sexually explicit conduct involving his 17 month old daughter. He shipped and transported the sexually explicit videos and images via cell phone. In addition, Batten admitted to possessing over 1100 images and 211 videos of child pornography.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); and prosecuted by Assistant U.S. Attorney’s Clinton Johnson and Shannon Cozzoni.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Chinese National Arrested for Illegally Attempting to Export High-Grade Carbon Fiber to ChinaRead the Press Release
Fuyi Sun, aka Frank, 52, a citizen of the People’s Republic of China, was arrested yesterday in connection with a scheme to illegally export to China, without a license, high-grade carbon fiber that is used primarily in aerospace and military applications.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York, Special Agent in Charge Angel M. Melendez of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York Field Office, Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce (DOC) Bureau of Industry and Security’s Office of Export Enforcement New York Field Office and Special Agent in Charge Craig Rupert of the Department of Defense’s Defense Criminal Investigative Service (DCIS) Northeast Field Office.
The complaint charges Sun with one count of attempting to violate the International Emergency Economic Powers Act (IEEPA), one count of conspiracy to violate IEEPA and one count of attempting to smuggle goods from the United States. Sun was arrested yesterday after traveling to the United States to meet with undercover agents (UCs) in an effort to obtain the specialized fiber which, due to its military and aerospace applications, requires an export license for export to China. Sun was presented last night before U.S. Magistrate Judge James L. Cott of the Southern District of New York.
“Sun allegedly attempted to procure high grade carbon fiber for a source he repeatedly identified as the Chinese military,” said Assistant Attorney General Carlin. “The carbon fiber – which has many aerospace and defense applications – is strictly controlled, and Sun expressed a willingness to pay a premium to skirt U.S. export laws. The National Security Division will continue to work to identify and hold accountable those who seek to violate IEEPA and other laws designed to protect our strategic commodities from those who may wish us harm.”
“As alleged, Fuyi Sun attempted for years to acquire high-grade carbon fiber for illegal export to China,” said U.S. Attorney Bharara. “Earlier this week, after traveling to New York from China to finalize the deal, Sun allegedly told undercover agents that the carbon fiber he sought was headed for the Chinese military, and then paid tens of thousands of dollars in cash to purchase two cases of it. And to avoid law enforcement detection, Sun allegedly directed the undercover agents to ship the carbon fiber in unmarked boxes and to falsify the shipping documents regarding the contents of the boxes.”
“Keeping items such as this high grade carbon fiber, which can be used for military applications, from falling into the wrong hands possibly endangering national security, is a job HSI takes very seriously,” said Special Agent in Charge Melendez. “Through this investigation, we have disrupted an alleged attempt to knowingly circumvent export controls and ensured this material will not be used for nefarious purposes.”
“A top priority of the Office of Export Enforcement is identifying and disrupting the illicit export of items for unauthorized military end-uses and users in China,” said Special Agent in Charge Carson. “Carbon fiber has military, missile and nuclear applications. In this case, working with our law enforcement partners we thwarted an alleged attempt to illegally export carbon fiber to China.”
“The recent arrest reinforces the commitment of the Defense Criminal Investigative Service (DCIS) to halting the spread of Defense technology to restricted nations,” said Special Agent in Charge Rupert. “The ongoing partnership with other law enforcement agencies is essential to shielding America's investment in defense.”
According to the allegations in the complaint that was filed yesterday in the Southern District of New York:
Since approximately 2011, Sun has attempted to acquire extremely high-grade carbon fiber, including Toray type M60JB-3000-50B carbon fiber (M60 Carbon Fiber). M60 Carbon Fiber has applications in aerospace technologies, unmanned aerial vehicles (commonly known as drones) and other government defense applications. Accordingly, M60 Carbon Fiber is strictly controlled – including that it requires a license for export to China – for nuclear non-proliferation and anti-terrorism reasons.
In furtherance of his attempts to illegally export M60 Carbon Fiber from the United States to China without a license, Sun contacted what he believed was a distributor of carbon fiber, but which was, in fact, an undercover entity created by HSI and staffed by HSI UCs. Sun inquired about purchasing the M60 Carbon Fiber without the required license. In the course of his years-long communications with the UCs, Sun repeatedly suggested various security measures that he believed would protect them from U.S. intelligence. Among other such measures, at one point, Sun instructed the undercover agents to use the term “banana” instead of “carbon fiber” in their communications. Consequently, soon thereafter he inquired about purchasing 450 kilograms of “banana” for more than $62,000. In order to avoid detection, Sun also suggested removing the identifying barcodes for the M60 Carbon Fiber prior to transshipment and further suggested that they identify the M60 Carbon Fiber as “acrylic fiber” in customs documents.
During meetings with the UCs, on or about April 11 and 12, 2016, among other things, Sun repeatedly suggested that the Chinese military was the ultimate end-user for the M60 Carbon Fiber he sought to acquire; claimed to have personally worked in the Chinese missile program; and asserted that he maintained a close relationship with the Chinese military, had a sophisticated understanding of the Chinese military’s need for carbon fiber and suggested that he would be supplying the M60 Carbon Fiber to the Chinese military or to institutions closely associated with it.
On or about April 12, 2016, Sun agreed to purchase two cases of M60 Carbon Fiber from the UCs and paid $23,000 in cash. He paid an additional $2,000 to the UCs as compensation for the risk he believed they were taking to illegally export the carbon fiber to China without a license.
Attempting to violate IEEPA and conspiracy to violate IEEPA each carry a maximum sentence of 20 years in prison. Attempting to smuggle goods from the United States carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the extraordinary investigative work of the HSI’s New York Field Office, DOC’s Bureau of Industry and Security’s Office of Export Enforcement and DCIS New York Office.
The case is being prosecuted Assistant U.S. Attorneys Matthew Podolsky, Patrick Egan, Sean Buckley and Nick Lewin of the Southern District of New York, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Sun Complaint
Children's Mercy Hospital Honored for Combating Crimes Against ChildrenRead the Press Release
More photos from the event are available in a Photo Gallery
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, presented the Crystal Kipper & Ali Kemp Memorial Award today to the SCAN (Safety Care And Nurturing) Clinic at Children’s Mercy Hospital. Dickinson also presented the Lifetime Achievement Award to former Assistant U.S. Attorney Katharine Fincham.
Today’s award ceremony was part of an annual event hosted by the U.S. Attorney’s Office, the Jackson County Prosecutor’s Office and VictimNet, a coalition of victim service providers and others committed to meeting the needs of crime victims in Jackson County, in conjunction with the observance of National Crime Victims’ Rights Week. This year’s theme – “Serving Victims. Building Trust. Restoring Hope.” – emphasizes the importance of providing needed services at the earliest stage of victimization.
Crystal Kipper & Ali Kemp Memorial Award
“Thousands of children, the most vulnerable victims of crime, have been served by the SCAN Clinic at Children’s Mercy Hospital,” Dickinson said. “The SCAN Clinic is a critical resource to protect children from further trauma, provide the resources they need for recovery and prosecute their abusers.”
The SCAN Clinic is designed to provide an unbiased resource to investigate child abuse based on medical evidence. The specialized medical exams can help identify overlooked abuse as well as disprove suspected abuse. The SCAN clinic serves children and adolescents along with the families involved in the allegations of abuse and neglect. The SCAN Clinic has open access and accepts referrals from all sources including physician offices, individuals and families.
The Division of Child Abuse and Neglect at Children’s Mercy Hospital cares for nearly 3,000 children each year by identifying, preventing and treating all forms of child abuse. The division consists of:
- The SCAN Clinic;
- The Child and Family Therapy Department;
- A multi-disciplinary team for kids under 6 years old dealing with any trauma, which is comprised of the Division of Developmental and Behavioral Sciences and the Department of Social Work.
Lifetime Achievement Award
Fincham supervised the Computer Crimes and Child Exploitation Unit in the U.S. Attorney’s Office before retiring last year.
Her 33-year-long career began as an Assistant Prosecuting Attorney in the Jackson County Prosecutor’s Office in 1982. While at the Jackson County Prosecutor’s Office Fincham led what was then called the Sex Crimes Unit. She not only handled some of the most difficult and gut-wrenching cases in the office, but she also mentored young attorneys and helped them develop the skills necessary to successfully prosecute sex offenders.
In 1995 Fincham joined the U.S. Attorney’s Office and worked in both the General Crimes Unit and the Narcotics Unit before moving to the Computer Crimes and Child Exploitation Unit. From 2001 until her retirement in 2015, Fincham prosecuted the most serious child exploitation cases in the Western District of Missouri.
“Kathy has helped shape the law when it comes to protecting victims from predators,” Dickinson said, “and has always been conscientious of how a prosecution can affect a crime victim.
“Kathy spent her legal career pursuing justice for victims of crime and has dedicated herself to protecting the most vulnerable members of our society,” Dickinson said. “It is my great pleasure to present this award to a fierce advocate and consummate professional.”
National Crime Victims’ Rights Week
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year during the local observance of National Crime Victims’ Rights Week to recognize the outstanding work of an individual or organization in protecting children from exploitation. The award was presented to the SCAN Clinic at Children’s Mercy Hospital in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Roger Kemp, Ali Kemp’s father, participated in today’s presentation; Anna Rhea, Crystal Kipper’s mother, was unable to attend this year’s event.
Today’s event at the Power and Light District also featured comments from Jackson County Prosecutor Jean Peters Baker and showcased various local victim service providers and a solidarity walk led by the Kansas City Mounted Patrol and Parents of Murdered Children. An art display featured the work of students of MyARTS.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorney’s Office has a dedicated Victim/Witness Unit that serves federal crime victims across the district’s 66 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. Victim/Witness personnel accompany victims to court hearings and trials to ensure that victim participation in court proceedings is meaningful and to answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorney’s Office Victim/Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at http://www.ovc.gov.
The Crystal Kipper & Ali Kemp Memorial Award
Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
Charleston drug dealer pleads guilty to Federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston heroin dealer pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Joshua Walls, 22, entered his guilty plea to distribution of heroin.
Walls admitted that on March 19, 2015, he sold heroin to a confidential informant working with the Charleston Police Department’s Special Enforcement Unit. The drug deal took place outside the defendant’s Fairview Drive residence in Charleston.
Walls faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 15, 2016.
The Charleston Police Department’s Special Enforcement Unit conducted the investigation. Assistant United States Attorney John J. Frail is handling the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Cave City, Kentucky, Physician Charged with Illegally Dispensing Controlled Substances Outside of His Professional Medical Practice, Health Care Fraud and Identity TheftRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. this week, charged Christopher Steward, M.D., of Cave City, Kentucky, by grand jury indictment, with criminal counts of knowingly and intentionally distributing and dispensing controlled substances outside the course of professional medical practice, health care fraud, and identity theft, while he was a practicing physician in the Western District of Kentucky.
The eight-count indictment charging Steward alleges the criminal activity occurred between June of 2013, and July of 2015, in Barren County, Kentucky. Steward is charged with one-count of acquiring possession of controlled substances by misrepresentation, fraud, deception and subterfuge; three-counts of distributing and dispensing controlled substances outside the course of professional medical practice; two-counts of conspiracy to acquire possession of controlled substances by misrepresentation, fraud, deception and subterfuge; one-count of health care fraud; and one-count of illegally possessing and using a means of identification of another person (identity theft).
Steward was arrested yesterday, April 13, 2016, made an initial appearance before Magistrate Judge H. Brent Brennenstuhl, in Bowling Green, and released on a $25,000 unsecured bond.
In the event of a conviction, the maximum potential penalties Ford faces are no more than 67 years’ imprisonment, $3,500,000 in fines, and supervised release for a period of three years.
The case is being prosecuted by Assistant United States Attorney David Weiser, and it results from an investigation conducted by the Federal Bureau of Investigation (FBI) and Kentucky State Police.
California Woman Charged with Interference with A Flight CrewRead the Press Release
PHILADELPHIA - Jamie Lynne Combs, 35, of McKinleyville, California, was charged today by Indictment with interference with flight crew members and attendants and possession of a controlled substance, announced United States Attorney Zane David Memeger. According to the indictment, on March 18, 2016 while flying on United Airlines Flight Number 384, traveling from San Francisco California to Philadelphia, Combs assaulted and intimidated several United Airlines flight attendants and interfered with their performance and duties. It is further alleged that following her arrest at the Philadelphia International Airport, Combs was found to be in possession of marijuana, a Schedule I controlled substance.
If convicted, Combs faces a substantial period of imprisonment, a possible fine, a special assessment and a period of supervised release.
The case was investigated by Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
California Man Sentenced for Conspiracy to Commit Bank Fraud and Aggravated Identity TheftRead the Press Release
BOISE - Cristopher Sheldon Miller, 41, of San Leandro, California, was sentenced today in United States District Court to 36 months in prison followed by five years of supervised release for conspiracy to commit bank fraud and aggravated identify theft, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Miller to pay $70,590.96 in restitution. Miller pleaded guilty to the charges on January 27, 2016.
According to court proceedings, between June 25 and 29, 2015, the defendant and his co-conspirators made and attempted to make a number of fraudulent withdrawals at various banks in Ada County and Canyon County. The defendant would go into a bank, impersonate a real account holder, and present a fake California driver’s license and other personal information of the real account holder to obtain a temporary debit card. Miller attempted to make and made withdrawals at the banks. The defendant and his co-conspirators also made fraudulent purchases at various stores, using the customer account information. The defendant and his co-conspirators made at least $34,958.95 in fraudulent withdrawals and purchases in Idaho. In addition, the defendant and his co-conspirators made an additional $35,632.01 in fraudulent withdrawals and purchases in Colorado in June 2015.
The case was investigated by Federal Bureau of Investigation and the Boise Police Department.
California Man Pleads Guilty to Manufacturing Guns and Dealing in Firearms and Possession of a MachinegunRead the Press Release
Daniel Albert Crowninshield, 45, of Sacramento, California, pleaded guilty today to unlawfully manufacturing and dealing in firearms and possession of an unregistered machinegun, announced U.S. Attorney Benjamin B. Wagner for the Eastern District of California.
In his plea agreement, Crowninshield, who was also known by his online moniker “Dr-Death,” admitted that he operated an unlicensed firearms manufacturing business out of C&G Tool, a metal shop in North Sacramento. Using sophisticated computer controlled machines, Crowninshield manufactured lower receivers for AR-15s and other firearms. Crowninshield did not conduct background checks, enforce waiting periods, or complete firearm transaction paperwork.
Crowninshield advertised such services on at least one online firearm enthusiast forum. This website mainly consists of forums where people ask and answer questions related to firearms. Crowninshield, using the moniker Dr-Death was a prolific poster on the website. Additionally, other members frequently posted about Dr-Death, including review of service provided and recommending that other users visit his shop.
“The manufacturing and unlicensed sale for profit of high-capacity firearms is a serious threat to public safety,” said U.S. Attorney Wagner. “We will continue to vigorously investigate unlicensed gun dealers and prosecute violations of the federal firearms laws.”
“Daniel Crownshield aka Dr. Death owned and operated a machine shop where he allowed customers with unknown backgrounds to use his machinery to unlawfully manufacture firearms for profit,” said Special Agent in Charge Jill A. Snyder for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF regulates the firearm industry and it is illegal to manufacture and sell firearms without possessing a federal firearms license and without conducting background checks. ATF’s goal is to keep firearms out of the hands of prohibited individuals and prevent violent crime.”
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Justice’s Bureau of Firearms, with the assistance of the Sacramento Police Department, Sacramento County Sheriff’s Department and California Highway Patrol. Assistant United States Attorneys Justin Lee and Matthew Yelovich are prosecuting the case.
Crowninshield is scheduled to be sentenced by U.S. District Judge Judge Troy L. Nunley for the Eastern District of California on June 30. Crowninshield faces a maximum statutory penalty of 10 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.
Business Owner Sentenced to Prison for Tax EvasionRead the Press Release
PITTSBURGH – A resident of New Kensington, Pa., was sentenced today in federal court to 12 months imprisonment, followed by three years of supervised release, and a fine of $5,000, on his conviction of tax evasion, United States Attorney David J. Hickton announced today.
Senior United States District Court Judge Donetta W. Ambrose imposed sentence upon William Henry Julius.
According to information presented to the court, as the owner of Materials Design Evaluation, Inc., Julius falsified company records by understating receipts and inflating business expenses, and then conveyed these false numbers to the person who prepared his corporate tax returns. Julius then used the false business income amounts in preparing his own fraudulent personal tax return Forms 1040, for 2008-2010, wherein he understated his tax liability by a total of $121,046.00.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of Julius.
Burr Pleads Guilty to Conspiracy to Distribute Heroin, Money Laundering in La Raza Street Gang CaseRead the Press Release
SALT LAKE CITY – Wayne LeRoy Burr aka Miclo, age 32, of Salt Lake County, pleaded guilty to conspiracy to distribute heroin and money laundering in federal court Tuesday as a part of an investigation of drug trafficking activities involving La Raza, a local street gang. The investigation, which was initiated by the Salt Lake City Police Department and the FBI’s Safe Streets Task Force, focused on an auto shop that was believed to be utilized as a stash house where illegal narcotics were received, packaged, and later distributed.
Burr admitted that between May 1, 2013, and June 27, 2013, he conspired with other individuals to violate federal drug laws by illegally distributing heroin. He also admitted that he purchased a Dodge Ram 1500 on Feb. 12, 2013. The purchase of the vehicle involved more than $10,000 obtained through the illegal trafficking of narcotics, Burr admitted.
The plea agreement reached with federal prosecutors includes a stipulated sentence of 96 months, which is subject to the approval of the Court at an upcoming sentencing hearing. Burr also has agreed to forfeit $1,248 in cash, three vehicles, and a 19-inch stainless steel knife as proceeds of illegal conduct or property used to help facilitate the illegal conduct.
Burr was one of 13 individuals charged with conspiracy to distribute methamphetamine and heroin, distribution of methamphetamine and heroin, possession of methamphetamine and heroin with intent to distribute, and money laundering in a 31-count indictment returned in March 2014. In addition to the FBI and the Salt Lake City Police Department, special agents of IRS-Criminal Investigation also joined the investigation.
Samuel Covarrubias-Velazquez, age 38, of Salt Lake County, was sentenced to 87 months in federal prison after pleading guilty to conspiracy to distribute methamphetamine and conspiracy to distribute heroin. Javier Corrales, age 36, of Salt Lake County, is serving a 60- month sentence after pleading guilty to distribution of methamphetamine. David Miramontes, age 30, of Salt Lake County, is serving a 72-month sentence for possession of methamphetamine with intent to distribute and money laundering convictions. Carlos Tenengueno, age 26, of Salt Lake County, and Jose Munoz, age 28, of Salt Lake County, were each sentenced to 60 months in prison for distribution of heroin. Guillermo Miramontes, age 24, of Salt Lake County, who pleaded guilty to money laundering, was sentenced to 36 months of probation and William Reveles, age 36, of Salt Lake County, who also pleaded guilty to money laundering, was sentenced to time served and 36 months of supervised release. Anthony Pedroza, age 28, of Salt Lake County, pleaded guilty to possession of heroin with intent to distribute. Sentencing in his case is set for June 27, 2016. Sentencing is set for May 19, 2016, for Juan Reveles, age 37, of Sevier County, who pleaded guilty to possession of methamphetamine with intent to distribute.
Alejandro Arciniega-Zetin, age 26, of Salt Lake County, was convicted of distribution of heroin following a three-day trial in March. Sentencing in his case is set for June 28, 2015. Prosecutors dismissed money laundering charges against two defendants in the case.
Boston Medical Center Agrees to Pay $1.1 Million to Resolve Allegations that it Improperly Billed Medicare and MedicaidRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that Boston Medical Center (BMC) and two of its physician practice organizations have agreed to pay $1.1 million to resolve allegations that BMC improperly billed Medicare and Medicaid.
“Hospitals have a responsibility to ensure that they are billing federal health care programs appropriately,” said U.S. Attorney Ortiz. “When taxpayer money is on the line, we have a duty to make certain that it is spent appropriately. We commend BMC for taking steps to address its billing issues both before and after the government’s investigation arose.”
“Taxpayers fund Medicare and Medicaid services to care for medically vulnerable populations,” said Special Agent in Charge Phillip M. Coyne, Office of Inspector General for the U.S. Department of Health and Human Services. “With our law enforcement partners we will continually work to protect people relying on these government health programs.”
Specifically, the settlement resolves allegations that (1) BMC billed Medicare for more units of Rituxan, an expensive cancer drug, than BMC actually infused in its patients; (2) BMC billed Medicare and Medicaid for services at its pre-surgical treatment center even though the global fee for the subsequent surgeries covered those same treatments; and (3) BMC submitted claims to Medicare for outpatient podiatry services where the clinical documentation did not support the reasonableness and necessity of the services.
After learning of the government investigation, BMC informed the United States that it already had repaid certain improperly used funds, had undertaken an audit of the Rituxan issue, and was about to commence an audit of the pre-surgical treatment billing issue. BMC subsequently worked cooperatively with the U.S. Department of Health and Human Services, Office of the Inspector General, and the Department of Justice to address the remaining matters at issue.
The settlement resolves allegations filed by BMC’s former Chief Compliance Officer, Kathleen Heffernan. The False Claims Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.
This matter was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation. It was handled by Assistant U.S. Attorney Gregg Shapiro of Ortiz’s Civil Division.
Boston Mafia Associate Sentenced for Idaho Gun ChargeRead the Press Release
BOISE – Enrico M. Ponzo, a/k/a Jay Shaw, a longtime fugitive from Boston, Massachusetts, who posed as a rancher while living on the run in Marsing, Idaho, was sentenced today to 46 months in prison followed by three years of supervised release for unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered that 23 months of Ponzo’s sentence is to be served consecutively to the 28 year prison sentence in the District of Massachusetts. Ponzo pleaded guilty on January 25, 2016.
According to the plea agreement and court proceedings, Ponzo admitted that on February 8, 2011, he knowingly possessed 33 firearms after having been convicted of felony assault and battery on a public employee. Ponzo was also found to be in possession of 34,000 rounds of ammunition. The government argued that a consecutive sentence was warranted, in part, because of the 90 disciplinary reports filed by the Ada County Jail, which included five incidents of involving the use of force. Judge Lodge also found that Ponzo obstructed justice in attempting to influence a witness in the case.
Ponzo was arrested by the FBI and the U.S. Marshals in Marsing, Idaho, in February 2011, 16 years after he fled Boston. After his arrest in Idaho, he was returned to Boston to face numerous charges. In November 2013, following a seven week jury trial, Ponzo was found guilty of racketeering conspiracy, the 1989 attempted murder of Francis P. Salemme, Sr., and the 1994 attempted murder of Joseph Cirame, both of whom were shot and seriously injured. The jury also found Ponzo guilty of murder conspiracy in aid of racketeering, firearm possession in relation to murder conspiracy, conspiracy to distribute more than 500 grams of cocaine, conspiracy to distribute more than 1,000 kilograms of marijuana, conspiracy to use extortionate means to collect a debt, use of extortionate means to collect a debt, unlawful flight to avoid prosecution, money laundering conspiracy, money laundering, and attempted witness tampering. U.S. District Court Judge Nathaniel M. Gorton sentenced Ponzo to 28 years in prison to be followed by three years of supervised release.
The District of Idaho case was investigated by the Treasure Valley Metro Violent Crime Task. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Treasure Valley Metro Violent Crime Task Force assisted the United States Marshals Service Greater Idaho Fugitive Task Force in apprehending Ponzo.
Biloxi Resident Sentenced to Prison on Drug ChargeRead the Press Release
Gulfport, Miss –Willie Eugene Russell, age 39, of Biloxi, was sentenced on April 12, 2014, by Chief U.S. District Judge Louis Guirola, Jr. to serve 74 months in prison followed by three years of supervised release for possession with intent to distribute cocaine hydrochloride, announced U.S. Attorney Gregory K. Davis. He was also ordered to pay a $5,000 fine.
Russell was arrested after selling 122.2 grams of cocaine hydrochloride. Following his arrest, a search warrant was conducted on his residence. A seizure of cocaine base, cocaine hydrochloride, and United States Currency resulted from the search of Russell’s residence.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Shundral H. Cole.
Baltimore Man Pleads Guilty to Robbing Three Stores and Three BanksRead the Press Release
Baltimore, Maryland – Gregory George Branch age 42, of Essex, Maryland, pleaded guilty today to three armed commercial robberies and three bank robberies.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; Anne Arundel County State’s Attorney Wes Adams; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, on June 23 and July 3, 2015, Branch robbed a grocery store in Baltimore and convenience store in Essex, respectively. In each robbery, Branch approached the cashier, pretending to make a purchase, before raising his shirt to display what appeared to be the handle of a black handgun. Branch then demanded money from the cashier, who gave him money from the register and Branch left the store. On July 4, 2015, Branch robbed a discount store in Brooklyn Park, Maryland, displaying what appeared to be a black handgun. Branch ordered the security guard to place guard’s weapon in a trash can, then ordered the security guard and the store manager to open the safe. The manager gave Branch approximately $300 from the safe and Branch ran away.
Branch also admitted that on July 1, July 14 and July 17, 2015, he robbed three banks, stealing a total of approximately $4,402. In each robbery, Branch presented the teller with a note demanding money. In the note presented in the July 14, 2015, robbery Branch claimed to have a gun and in the robbery on July 17, 2015, Branch pointed what appeared to be a handgun at the teller.
When Branch was arrested, he was in possession of a black pellet gun that was used in all three of the store robberies and the bank robbery on July 17, 2015.
Branch also admitted that he committed nine other robberies or attempted robberies of businesses in Baltimore City and Baltimore County during June and July of 2015.
Branch and the government have agreed that if the Court accepts the plea agreement Branch will be sentenced to 130 months in prison followed by five years of supervised release. U.S. District Judge Marvin J. Garbis has scheduled sentencing for July 18, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore County Police Department; Anne Arundel County Police Department; Anne Arundel County State’s Attorney’s Office, Baltimore County State’s Attorney’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Matthew C. Sullivan, who is prosecuting the case.
Atlantic County, New Jersey, Man Admits Possessing Child Pornography, Sending Lewd Image to A MinorRead the Press Release
CAMDEN, N.J. - An Egg Harbor Township, New Jersey, man today admitted using online messaging applications to solicit nude photos from minors and transmit a lewd photo to a girl, U.S. Attorney Paul J. Fishman announced.
Zackary McFerren, 24, pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of possession of child pornography and one count of transferring obscene matter to a minor.
According to documents filed in this case and statements made in court:
McFerren admitted that between March 2015 and May 2015, he possessed multiple images of child pornography on his home computer. He also admitted that in April 2015, he used the “Kik” messaging application under the screen name “Emily” to communicate with a minor girl in the Philadelphia area. McFerren admitted that during the conversations, he asked the minor girl and her friend to take nude photographs of themselves and their genitalia. The girl then sent McFerren at least 14 such photographs.
In addition, McFerren admitted that in September 2015, he used Snapchat to send a picture of his penis to a Florida girl who was under the age of 16.
Both charges to which McFerren pleaded guilty carry a maximum potential penalty of 10 years in prison and $250,000 fine. Sentencing is scheduled for July 21, 2016.
U.S. Attorney Fishman credited the FBI’s Child Exploitation Task Force, including special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and detectives of the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain, with the investigation leading to today’s plea. He also thanked the FBI’s Philadelphia Division, the Egg Harbor Township Police Department and the Bay County, Florida, Sheriff’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel: Edward Crisonino, Esq., Collingswood, New Jersey
Alma Man Sentenced to 5 Years in Federal Prison for Child PornographyRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Lonnie Symonds, age 39, of Alma, Arkansas, was sentenced today to 60 months imprisonment followed by five years of supervised release for Receipt of Child Pornography. The sentencing hearing took place before the Honorable P. K. Holmes, III in the United States District Court in Fort Smith.
According to court records, in February, 2015, the River Valley and Northwest Arkansas Internet Crimes Against Children Task Force and Homeland Security Investigations conducted a search for subjects using the internet to access child pornography and discovered that images and videos depicting minors engaging in sexually explicit conduct had been downloaded at an apartment in Fort Smith where Symonds was living. A federal search warrant was issued and executed on the apartment. Symonds was present and admitted to law enforcement that he had been viewing and downloading child pornography. A forensic examination of the laptop that law enforcement had seized from his apartment revealed 49 images depicting child pornography. Symonds was indicted by a federal grand jury on October 28, 2015 and pleaded guilty to the charge on December 10, 2015.
"This investigation highlights the continued successful partnership between ICE Homeland Security Investigations and the Northwest Arkansas Internet Crimes Against Children Task Force," said Raymond R. Parmer Jr. special agent in charge of HSI New Orleans. "Identifying and investigating those who prey on innocent children via the Internet will continue to be one of HSI's highest priorities."
This case was investigated by Homeland Security Investigations and the River Valley and Northwest Arkansas Internet Crimes Against Children Task Force. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Albuquerque Woman Sentenced for Conviction Arising Out of Armed Robbery of Retail Pharmacy in January 2015Read the Press Release
ALBUQUERQUE – Josephine Duran, 24, of Albuquerque, N.M., was sentenced this morning in federal court to 57 months in prison followed by three years of supervised release for her conviction on prescription drug trafficking and theft of medical products charges arising out of the armed robbery of an Albuquerque-area retail pharmacy in Jan. 2015.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division and Chief Gorden Eden, Jr., of the Albuquerque Police Department.
Duran was one of six defendants charged in four indictments that were announced by federal and local officials on April 29, 2015. The indictments charged the six defendants with robbing retail pharmacies in Albuquerque to illegally obtain Oxycodone and other highly addictive opioid prescription painkillers. The four indictments charged Duran, her co-defendant Blake Gallardo, 23, and four other Albuquerque residents with crimes arising out of the armed robberies of retail pharmacies, including violations of the Controlled Substance Registrant Protection Act and the Safe Doses Act, laws passed to address the theft and diversion of prescription drugs.
At the time the indictments were announced, Duran and Gallardo had not been arrested and were considered fugitives. Thereafter, Duran was arrested on May 22, 2015, and Gallardo was arrested on June 11, 2015.
Duran and Gallardo were charged with (1) violating the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) brandishing a firearm during a crime of violence; (3) violating the Controlled Substance Registrant Act by committing robbery involving controlled substance; (4) violating the Safe Doses Act by committing theft of medical products; and (5) possession of Oxycodone with intent to distribute. The charges arose out of the armed robbery of a Walgreens Pharmacy located at 6565 Paradise Blvd. NW in Albuquerque on Jan. 30, 2015.
On Sept. 24, 2015, Duran entered a guilty plea to Count 5 of the indictment charging her with possession of Oxycodone with intent to distribute, and to a felony information charging her with theft of medical products. In her plea agreement, Duran acknowledged knowing about the robbery in advance. Duran also admitted taking Gallardo’s loaded firearm and drugs stolen from the Walgreens Pharmacy on Jan. 30, 2015, while Gallardo attempted to flee from law enforcement. Duran admitted that she intended to distribute the stolen Oxycodone.
On Sept. 4, 2015, Gallardo entered a guilty plea to Counts 1, 2, 3 and 5 of the indictment. He also pleaded guilty to a felony information charging him with robbery involving controlled substance, a charge arising out of the June 6, 2015 robbery of a Walgreens Pharmacy located at 1201 Unser Blvd. NW in Albuquerque. In his plea agreement, Gallardo admitted robbing both Walgreens Pharmacies at gunpoint.
With respect to the Jan. 30, 2015 robbery, Gallardo entered the pharmacy, jumped over the pharmacy counter while brandishing a firearm, and ordered the pharmacist to open a locker in which controlled substances were stored. Gallardo pointed his firearm at the pharmacist, took her keys, opened the locker, and filled a bag with Oxycodone. Gallardo and Duran were arrested on state charges shortly after the robbery. With respect to the June 6, 2015 robbery, the plea agreement states that Gallardo was armed with a firearm when he entered the pharmacy and jumped over the pharmacy counter. He grabbed two pharmacy employees and directed them to the pharmacy’s controlled substance locker. Gallardo took several bottles of Oxycodone from the locker and ran out of the pharmacy.
Gallardo was sentenced on Dec. 15, 2015, to 15 years in federal prison followed by three years of supervised release.
The pharmacy robbery cases involving the other four defendants have been resolved as follows:
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On July 1, 2015, Victor Hurtado, 20, pled guilty to felony charges arising out of the Jan. 6, 2015, armed robbery of the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque. Hurtado was sentenced on Dec. 10, 2015, to 141 months in federal prison followed by five years of supervised release.
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On Sept. 17, 2015, Valentin Garcia, 23, pled guilty to felony charges arising out of the Jan. 30, 2015, armed robbery of the CVS Pharmacy located at 4201 Montano in Albuquerque.Garcia was sentenced on Dec. 17, 2015, to ten years in federal prison followed by three years of supervised release.
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On Nov. 17, 2015, Roy Christopher 29, pled guilty to felony charges arising out of the Aug. 3, 2014, robbery of a CVS pharmacy in Albuquerque.Christopher was sentenced on April 8, 2016, to 41 months in prison followed by three years of supervised release.
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On Jan. 19, 2016, Joseph Montano, 23, pled guilty to felony charges arising out of the Jan. 6, 2015, armed robbery of the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque. Under the terms of his plea agreement, Montano will be sentenced within the range of 80 to 120 months in federal prison.
These cases were investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque, and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office in Bernalillo County. The cases are being prosecuted by Assistant U.S. Attorneys Shaheen P. Torgoley and Joel R. Meyers.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It created penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
These pharmacy robbery cases were prosecuted pursuant to a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders 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.
The cases also were prosecuted as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
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21 Individuals Indicted for Violating the Rico Act in Puerto RicoRead the Press Release
The Defendants Are Part of a Bank/ATM Robbery Gang from the Campanilla and Candelaria Wards in the Municipality of Toa Baja, Puerto Rico
A 17 count federal indictment was unsealed today in the District of Puerto Rico charging 21 defendants with racketeering, conspiracy to commit bank robbery, burglary and larceny, interference with commerce by robbery, carjacking, conspiracy to possess with the intent to distribute controlled substances and related firearm offenses, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The FBI and the Puerto Rico Police Department, Bank Robbery Division, are in charge of the investigation.
The defendants are: Alfredo Umpierre-Santiago aka Freddie; Luis Ángel Guerrido-Medina aka Viejo; Juan Rosario-Marrero aka Vaquerito; Steven Tapia-Morales aka El Gordo; Elvin Morales-Ramírez aka Chino; Obrayan Hernández-López aka Oby; Luis R. Cotto-Rivera aka Dico; Ivan Martínez-Torres; Enrique Pérez-Rivera aka Henry; David Vargas-Santiago aka Davo; Jahn M. Fermin-Cortés aka Jan; Carlos Fidian Jiménez-Feliz, aka Picachu; José Reyes-Neváres aka Piti; Gabriel Vélez aka Avatar; Yarelis E. García-Ruiz; Javier Ortiz-Nieves aka Javo; Stephanie Herrera-Montañez aka Guri; Karina Alamo-Marrero; Yeisha M. Pedraza-Santiago; Jimmy Molina-Otero aka Tío Jimmy; and Edmanuel Laureano-Spanoz, aka Emma.
The indictment charges robberies to four banks, two credit unions and a gas station. According to the indictment, as part of the racketeering and bank robbery conspiracies, the organization committed the following violent acts:
- On Nov. 25, 2010, seven defendants travelled to COOPACA, a state insured credit union in Levittown, Toa Baja, assaulted and abducted a security officer at gun point and stole approximately $45,220 from an ATM machine and they also abducted and robbed other civilians.
- On Dec. 29, 2014, 11 of the defendants travelled to Colmadito Encantado at Plaza Encantada in Trujillo Alto, assaulted and abducted a security officer at gun point and stole approximately $53,960 from an ATM belonging to Scotiabank.
- On Jan. 5, 2015, 11 of the defendants travelled to the Doral Bank in Vega Baja, burglarized the bank, stole the security recording system, computer equipment and approximately $228,800 from the ATMs.
- On Jan. 28, 2015, nine of the defendants travelled to the Oriental Bank in Cagüitas Mall in Caguas, abducted and robbed a security guard at gun point, breached the bank, and attempted to steal money from the ATM.
- On Feb. 11, 2015, seven of the defendants travelled to the Doral Bank at Plaza Dorada in Dorado with the intent of burglarizing that bank. In their attempt, they abducted one security guard and fatally shot a second security guard.
- On March 28, 2015, five of the defendants travelled to Plaza Morovis and stole $30,330 from an off-premises ATM belonging to COOPERATIVA Moroveña. In order to commit the offense, they abducted and robbed a security guard at gun point and also carjacked his vehicle.
- On Aug. 18, 2015, six of the defendants robbed the Gulf Gas Station Convenience Store located in Ciales and stole $61,480 from an ATM belonging to Banco Popular of Puerto Rico. They also stole $879 from the cash register, 50 cigarette cartons worth over $3,000 and threatened the clerk with a sledgehammer and restrained the clerk in the bathroom.
Defendants Guerrido-Medina and Laureano-Spanoz are facing one charge of conspiracy to possess with intent to distribute heroin, cocaine and marihuana. All defendants are facing a RICO forfeiture allegation of at least $190,900 and a bank robbery forfeiture allegation of $344,240.
“The U.S. Attorney’s Office will continue its prosecution of organized gangs and their members who engage in senseless acts of violence to wreak havoc in our communities,” said U.S. Attorney Rodríguez-Vélez. “Those who choose to become involved in such a lifestyle should know that law enforcement at every level will work together tirelessly to bring them to justice.”
“Today's operations addressed some of the most violent gang activity in the United States,” said Special Agent in Charge Douglas A. Leff for the FBI’s San Juan Division. “The acts of violence that accompanied the alleged robberies were premeditated and utilized sophisticated techniques to defeat alarms and video surveillance systems. The dedicated prosecutors and investigators went to great lengths to identify and apprehend those responsible, and their efforts will significantly increase the safety of our citizens and financial institutions.”
Assistant U.S. Attorney Max Pérez-Bouret and Special Assistant U.S. Attorney Normary Figueroa are in charge of the prosecution of the case. If convicted, the defendants face up to life in prison. Seven of the defendants who participated in the murder included in the indictment are eligible for the death penalty. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
21 Individuals Indicted for Violating the RICO Act in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – A seventeen (17)-count federal indictment was unsealed today in the District of Puerto Rico charging twenty-one (21) defendants with racketeering, conspiracy to commit bank robbery, burglary and larceny, interference with commerce by robbery (Hobbs Act), carjacking, conspiracy to possess with the intent to distribute controlled substances, and related firearm offenses, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. The FBI and the Puerto Rico Police Department, Bank Robbery Division, are in charge of the investigation.
The defendants are: Alfredo Umpierre-Santiago, aka “Freddie;” Luis Ángel Guerrido-Medina, aka “Viejo;” Juan Rosario-Marrero, aka “Vaquerito;” Steven Tapia-Morales, aka “El Gordo;” Elvin Morales-Ramírez, aka “Chino;” Obrayan Hernández-López, aka “Oby;” Luis R. Cotto-Rivera, aka “Dico;” Ivan Martínez-Torres; Enrique Pérez-Rivera, aka “Henry;” David Vargas-Santiago, aka “Davo;” Jahn M. Fermin-Cortés, aka “Jan;” Carlos Fidian Jiménez-Feliz, aka “Picachu;” José Reyes-Neváres, aka “Piti;” Gabriel Vélez, aka “Avatar;” Yarelis E. García-Ruiz; Javier Ortiz-Nieves, aka “Javo;” Stephanie Herrera-Montañez, aka “Guri;” Karina Alamo-Marrero; Yeisha M. Pedraza-Santiago; Jimmy Molina-Otero, aka “Tío Jimmy;” and Edmanuel Laureano-Spanoz, aka “Emma.”
The indictment charges robberies to four banks, two credit unions, and a gas station. According to the indictment, as part of the racketeering and bank robbery conspiracies, the organization committed the following violent acts:
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On November 25, 2010, seven defendants travelled to COOPACA, a state insured credit union in Levittown, Toa Baja, assaulted and abducted a security officer at gun point and stole approximately $45,220 from an ATM machine, and they also abducted and robbed other civilians.
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On December 29, 2014, eleven of the defendants travelled to Colmadito Encantado at Plaza Encantada in Trujillo Alto, assaulted and abducted a security officer at gun point, and stole approximately $53,960 from an ATM belonging to Scotiabank.
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On January 5, 2015, eleven of the defendants travelled to the Doral Bank in Vega Baja, burglarized the bank, stole the security recording system, computer equipment and approximately $228,800 from the ATMs.
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On January 28, 2015, nine of the defendants travelled to the Oriental Bank in Cagüitas Mall in Caguas, abducted and robbed a security guard at gun point, breached the bank, and attempted to steal money from the ATM.
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On February 11, 2015, seven of the defendants travelled to the Doral Bank at Plaza Dorada in Dorado with the intent of burglarizing that bank. In their attempt, they abducted one security guard and fatally shot a second security guard.
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On March 28, 2015, five of the defendants travelled to Plaza Morovis and stole $30,330 from an off-premises ATM belonging to COOPERATIVA Moroveña. In order to commit the offense, they abducted and robbed a security guard at gun point and also carjacked his vehicle.
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On August 18, 2015, six of the defendants robbed the Gulf Gas Station Convenience Store located in Ciales and stole $61,480 from an ATM belonging to Banco Popular of Puerto Rico. They also stole $879 from the cash register, 50 cigarette cartons worth over $3,000, and threatened the clerk with a sledgehammer and restrained the clerk in the bathroom.
Defendants Guerrido-Medina and Laureano-Spanoz are facing one charge of conspiracy to possess with intent to distribute heroin, cocaine and marihuana. All defendants are facing a RICO forfeiture allegation of at least $190,900, and a bank robbery forfeiture allegation of $344,240.
“The United States Attorney’s Office will continue its prosecution of organized gangs and their members who engage in senseless acts of violence to wreak havoc in our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Those who choose to become involved in such a lifestyle should know that law enforcement at every level will work together tirelessly to bring them to justice.”
“Today's operations addressed some of the most violent gang activity in the United States. The acts of violence that accompanied the alleged robberies were premeditated and utilized sophisticated techniques to defeat alarms and video surveillance systems,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division. “The dedicated prosecutors and investigators went to great lengths to identify and apprehend those responsible, and their efforts will significantly increase the safety of our citizens and financial institutions.”
Assistant U.S. Attorney Max Pérez-Bouret and Special Assistant U.S. Attorney Normary Figueroa are in charge of the prosecution of the case. If convicted, the defendants face up to life in prison. Seven of the defendants who participated in the murder included in the indictment are eligible for the death penalty. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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10th Street Gang Associate Sentenced for his Role in ShootingRead 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 Luis Hernandez, age 26, of Buffalo, New York, who was convicted of discharging a firearm during a crime of violence, was sentenced to 10 years imprisonment by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that on April 17, 2006, the defendant assisted a group of 10th Street Gang members, who were looking to shoot rival 7th Street Gang members, by firing a shotgun at a group of people outside of a residence on Pennsylvania Street on the West Side of Buffalo. On that date, the defendant was among a group of six (6) 10th Street Gang members and associates who were armed and fired shots at the victims. During the shooting, the defendant possessed a shotgun and discharged this firearm in the general vicinity of the victims. In total, dozens of shots were fired at the victims from the various firearms possessed by the defendant and other 10th Street Gang members and associates. Brandon MacDonald and Darinell Young were both shot and killed as a result of injuries sustained during the shooting.
The defendant is the tenth (10) person convicted for his role in the shooting deaths of Brandon MacDonald and Darinell Young, and is the fifth (5) person to be sentenced. The sentencing is the culmination of an investigation by the Buffalo Police Department, Federal Bureau of Investigation, New York State Police, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
13 April 2016
Youngstown man charged with transportation of a minor to engage in illicit sexual activityRead the Press Release
On April 11, 2016 an arrest warrant for David Guevara, Sr., 35, of Youngstown, was executed. Guevara was being held in the Mahoning County Jail on state charges at the time of this federal arrest. Guevara has been charged in federal court with attempted transportation and transportation of a minor to engage in illegal sexual activity, law enforcement officials said.
Guevara met a 15-year old girl in July 2015 and began a sexual relationship with her. Initially, Guevara would have sex with the minor in a tent under a Youngstown bridge. On July 31, 2015, Guevara purchased travel arrangements to move them to Philadelphia. During their trip and once they arrived in Philadelphia, Guevara Sr. continued to engage in sexual intercourse with the minor, according to the complaint.
Guevara was originally interviewed by local law enforcement on December 14, 2015. He admitted to engaging in a sexual relationship with the minor and traveling with her to Philadelphia, even though he knew that she was just 15 years old. Guevara also stated that it was his intent to have a child with the minor and to move her and the baby to Mexico, according to the complaint.
A detention hearing has been set for Thursday, April 14, 2016 at 10a.m. in Magistrate Limbert’s court room in Youngstown, Ohio.
This case was investigated by the Federal Bureau of Investigation Youngstown Resident Agency, the Mahoning County Sheriff’s Office, and the Youngstown Police Department. It is being prosecuted by Assistant United States Attorney Benedict S. Gullo.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Woman Sentenced to Prison for Importing CocaineRead the Press Release
McALLEN, Texas – A 52-year-old Mexican national who resided in Reynosa, Tamaulipas, Mexico, has been ordered to federal prison following her conviction of importing and possessing with intent to distribute more than five kilograms of cocaine, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Emma Areli Martinez-Morgado on Aug. 11, 2015, on all four counts as charged following one day of testimony and less than two hours of deliberation.
Today, Chief Judge Ricardo H. Hinojosa ordered Martinez-Morgado to serve a total of 51 months in federal prison. In handing down the sentence, Judge Hinojosa considered the quantity of the narcotics involved and the defendant’s role in committing the offense.
During trial, the jury heard that on Nov. 28, 2014, Martinez-Morgado entered the United States at the Pharr port of entry. She was driving a Chevrolet Blazer and was the only occupant in the vehicle when she approached the primary inspection area. There, a Customs and Border Protection (CBP) officer noticed that the spare tire underneath the vehicle appeared to have been tampered with and referred Martinez-Morgado for secondary inspection. The jury heard that Martinez-Morgado’s demeanor changed after being sent for further inspection.
At secondary, a subsequent search of the vehicle revealed 14 bricks of cocaine concealed within the spare tire, weighing a total of 15.12 kilograms. Testimony from an agent with Homeland Security Investigations (HSI) established a conservative value of the cocaine in the Rio Grande Valley to be approximately $250,000.
Martinez-Morgado originally denied any knowledge of the drugs and claimed she owned the vehicle and used it to cross into the United States to go shopping at K-Mart and flea markets. However, the government presented evidence showing that Martinez-Morgado’s crossing history in that vehicle was unusual in light of the stated purpose for travel.
Martinez-Morgado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to charges was conducted by CBP and HSI. Assistant U.S. Attorneys Alexandro Benavides and Leo J. Leo prosecuted the case.
Waverly, Tennessee Woman Pleads Guilty to Bank EmbezzlementRead the Press Release
Sheila Burns, 47, of Waverly, Tennessee, pleaded guilty today in U.S. District Court, to one count of embezzling funds from FirstBank, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. During a plea hearing before U.S. District Court Judge Aleta A. Trauger, Burns acknowledged engaging in a five-year scheme to embezzle money by creating and modifying fraudulent loans.
Burns admitted that, between 2010 and 2015, while employed as a loan assistant at FirstBank in Waverly, Tenn., she fraudulently obtained bank funds by falsifying loan documents and by originating and modifying loans, using the names of various FirstBank customers and forging their signatures on the loan documents. In an effort to further conceal the embezzlement scheme, Burns falsified entries on FirstBank’s cashier’s check log, and originated new fraudulent loans in order to make payments due on other loans she had fraudulently obtained. Burns obtained more than $130,000 from this loan scheme and she used these funds to pay personal expenses, including to pay bills and to pay down credit card debt.
Burns faces up to 30 years in prison and a fine of up to $1,000,000 and will be ordered to pay restitution to FirstBank and to forfeit the proceeds of her offense. She will be sentenced by Judge Trauger on July 13, 2016. Burns’ sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
United States Forfeits Tyrannosaurus Skull Looted from Mongolian DesertRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today the successful forfeiture of a Tyrannosaurus bataar skull (the “Bataar Skull”) unlawfully taken from the Gobi Desert in Mongolia. The Bataar Skull, a fossil from the Cretaceous period, which ended approximately 65 million years ago, had been auctioned in Manhattan in 2007 after being unlawfully brought into the United States. The current owner of the Bataar Skull, having been informed of its origins and the circumstances of its importation into the United States, consented to its forfeiture. The forfeiture order was signed this morning by the U.S. District Judge J. Paul Oetken.
The Bataar Skull is the latest addition to a lengthy list of looted dinosaur fossils the Office, together with its law enforcement partners at Homeland Security Investigations, has successfully forfeited. Since 2012, the United States Attorney’s Office for the Southern District of New York has secured the return and repatriation to Mongolia of several dinosaur fossils that include three full Tyrannosaurus bataar skeletons; a full Saurolophus angustirostris skeleton and another partial Saurolophus; six Oviraptor skeletons; four Gallimimus skeletons; a partial Ankylosaurus skeleton; a Protoceratops skeleton; a composite nest containing miscellaneous dinosaur eggs; and numerous small, unidentified prehistoric lizards and turtles.
Manhattan U.S. Attorney Preet Bharara said: “Our Office will continue to work to restore culturally and scientifically important artifacts to their rightful owner. Together with our law enforcement partners at the Department of Homeland Security, we are proud to repatriate another priceless dinosaur fossil to the Government of Mongolia.”
According to the civil complaint in this matter and other documents filed in this action:
The Tyrannosaurus bataar is indigenous to, and has only been unearthed in, a specific portion of the Gobi Desert called the Nemegt Basin, in what is now Mongolia. Mongolian law has long declared dinosaur fossils found within Mongolia to be government property. Their export from Mongolia without permission of the Government of Mongolia is a violation of Mongolian law.
On or about March 25, 2007, a California-based auction house offered the Bataar skull for sale at auction in Manhattan. The Bataar Skull had been shipped into the United States in June 2006 with United States Customs documents that described it only as “fossil stone pieces.” At auction, the Bataar Skull was described as native to the “Eurasian continent.” The Bataar Skull sold for approximately $230,000 at auction to an anonymous California-based buyer (the “Buyer”).
In 2015, HSI performed a physical examination of the skull and confirmed that it rightfully belongs to the Government of Mongolia and had been illegally imported into the United States. After being informed of the origins of the Bataar Skull, the Buyer agreed to turn it over to HSI and consented to its forfeiture.
Mr. Bharara praised the investigative work of HSI, and thanked the Government of Mongolia for its assistance.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Martin S. Bell is in charge of the case.
U.S. Citizen Residing in Mexico Pleads Guilty to Federal Heroin Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Vicenta Ramona Garcia, 29, a U.S. citizen, who resides in San Luis Rio Colorado, Sonora, Mexico pleaded guilty this morning in federal court in Albuquerque, N.M., to heroin trafficking charges under a plea agreement with the U.S. Attorney’s office.
Garcia and her codefendant Guadalupe Ofelia Lopez-Vasquez, 59, a Mexican national, who also resides in San Luis Rio Colorado, Sonora, Mexico, were arrested in Dec. 2015, after DEA agents seized approximately 15 pounds of heroin from them during consensual searches at the Greyhound Bus Station in Albuquerque. According to the criminal complaint, both women had heat-sealed bundles of heroin strapped to their backs and waists.
Garcia and Lopez-Vasquez were indicted on Dec. 17, 2015, and charged with conspiracy to distribute heroin and possession of heroin with intent to distribute on Dec. 9, 2015, in Bernalillo County, N.M.
During today’s proceedings, Garcia pled guilty to a felony information charging her with conspiracy and possession of heroin with intent to distribute. Garcia admitted that on Dec. 9, 2015, she and Lopez-Vasquez transported heroin from Phoenix, Ariz., to New Mexico on the Greyhound Bus by concealing heat-sealed bundles of heroin underneath their clothing. Garcia further admitted that the two women intended to give the drugs to another person when they reached their final destination of Columbus, Ohio.
Lopez-Vasquez pled guilty to similar charges on April 1, 2016.
At sentencing, Garcia and Lopez-Vasquez each face a maximum penalty of 20 years in federal prison. Both women remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
U.S. Attorneys Launch Nationwide Effort to Confront Discriminatory Backlash in Wake of Terrorist AttacksRead the Press Release
Detroit - U.S. Attorneys are joining forces with local law enforcement and community leaders for a series of events around the country to address backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, California. The 14 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country. From April 13 through 20, U.S. Attorneys in California, Colorado, Connecticut, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes. Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, along with FBI Special Agent in Charge David P. Gelios, Washtenaw County Sheriff Jerry Clayton and other law enforcement officials, will participate in a listening session with students from the University of Michigan and President Mark Schlissel regarding bias-related crime issues with a press briefing to follow. The event will take place today at 4pm at the University of Michigan Law School, Jeffries Lounge, South Hall 701 S. State Street, First Floor, Ann Arbor, MI 48109. A press briefing will follow at 5:15pm... "Federal law enforcement will take action against violence or threats of violence directed at anyone based on religion, ethnicity or national origin," McQuade said. "Even derogatory speech about Muslim Americans that is protected by the First Amendment can have adverse consequences by providing terrorist recruiters with propaganda to promote the false narrative that America is at war with Islam." During the last several months, individuals who are, or who are perceived to be, Muslim, Arab, Sikh and South Asian have been targeted for harassment and violence around the country. A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group. Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district. Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new intiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students. This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date. # # #U.S. Attorneys Launch Nationwide Effort to Confront Discriminatory BacklashRead the Press Release
U.S. Attorneys are joining forces with local law enforcement and community leaders for a series of events around the country to address backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, California. The 14 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
From April 12 through May 6, U.S. Attorneys in California, Colorado, Connecticut, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.
“The Department of Justice is determined to uphold the fundamental principle that all Americans should be free from violence and protected from hatred no matter who they are, what they look like, or where they're from,” said Attorney General Loretta E. Lynch. “These events underscore our ongoing commitment to safeguard the civil rights of every American – including Muslim, Arab, Sikh and South Asian Americans, who are so often the targets of threats on the basis of their appearance or religion. There is no place for intolerance in our country. In the weeks and months ahead, the Department of Justice will continue to work with local law enforcement partners and community leaders to defend the safety and the dignity of all our people.”
During the last several months, individuals who are, or who are perceived to be, Muslim, Arab, Sikh and South Asian have been targeted for harassment and violence around the country.
A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group.
Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district.
Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new initiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students.
This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
Muslim Backlash Event List
U.S. Attorney for the Northern District of Texas Launches Prescription Drug Abuse Prevention Public Service AnnouncementRead the Press Release
DALLAS — John Parker, the United States Attorney for the Northern District of Texas, announced the release today of a public service announcement (PSA) that addresses the dangers of prescription drug abuse and recommends ways parents can keep their children safe.
The announcement is made in advance of this year’s National Prescription Drug Take-Back Day on Saturday, April 30, 2016. Take-Back Day provides a safe, convenient and responsible means of disposing of unused prescription drugs, while educating the public about the dangers of misusing medications.
According to the Centers for Disease Control, 46 people die each day from an overdose of prescription painkillers in the United States. The rate of prescription painkiller overdoses has more than quadrupled since 1999 and is now the leading cause of injury death, causing more deaths than motor vehicle traffic accidents annually.
Teens and young adults, who mistakenly believe prescription drugs are safer than illicit drugs, are abusing pills at an alarming rate. One in four teens has misused or abused a prescription drug at least once in their lifetime, a 33 percent increase since 2008.
The increase in the use of prescription drugs has also led to an explosion of heroin abuse. The recent national heroin abuse rate is 19 times higher among those who reported prior use of prescription pain relievers than among those who did not report such use. And four out of every five people who try heroin for the first time admit to having abused prescription pain relievers first.
Prescription drug abuse prevention has long been a priority of the Administration. For more information regarding the Administration’s efforts see this White House Fact Sheet.
The PSA released today provides tips on how parents can dispose of prescription drugs safely, since the home medicine cabinet is the number-one source of prescription pills for teens and young adults. On Take-Back Day, collection sites will be open from 10:00 a.m. to 2:00 p.m. Click here to locate a collection site near you.
The PSA may be found here. Media requesting a high resolution version may contact the U.S. Attorney’s Office of Public Affairs at [email protected] or 214-659-8600.
# # #U.S. Attorney Laura Duffy and Local Law Enforcement Leaders Join Nationwide Effort to Confront Backlash Against Muslims in Wake of Terrorist AttacksRead the Press Release
Media Relations Director Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – April 13, 2016
SAN DIEGO – Four men in a pickup truck pulled alongside a pedestrian on Winter Gardens Boulevard in Lakeside and shouted at him. They called him “ISIS supporter” and “terrorist supporter” and told him to “Go back to Iraq!” Then at least one of the men in the truck opened the passenger door and went after their target, who was thrown to the ground, beaten and kicked.
Somehow he managed to stumble to get help, but by then he had suffered major damage. Emergency room doctors at Grossmont Hospital found that the bones holding his right eye in place were shattered, the muscle under the right eye had sunk, and there were bone fragments lodged in his optical nerve, impairing his vision.
This happened in December, about two weeks after the terrorist attack in San Bernardino. While the San Diego County Sheriff’s Department attempted to follow up with the victim and tried to locate witnesses, unfortunately the attackers could not be identified.
During the last several months, Muslims – or those perceived to be Muslim – have been targeted around the country in the aftermath of the tragic terrorist attacks in Brussels, Paris and San Bernardino.
As a result, United States Attorneys from California, Colorado, Connecticut, Idaho, Ohio, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey and Utah will work with community leaders and law enforcement from April 13 to 20 at special events to address discrimination, violence, and harassment targeting people because of what they look like, which country they come from, or where they worship. The aim is to protect civil rights and prevent hate crimes.
The 13 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
“All too often in the aftermath of acts of terrorism, Muslim Americans – and those perceived to be Muslim – have suffered a backlash of unthinkable violence and discrimination,” said U.S. Attorney Laura Duffy, co-chair of the Attorney General’s Advisory Committee Civil Rights Subcommittee. “These acts of retaliation violate the letter and the spirit of our Constitution, our laws, and the ideals upon which our nation was founded. The Department of Justice is committed to working with communities of all faiths to protect and ensure the civil rights of all faiths.”
In San Diego, U.S. Attorney Laura Duffy will be joined by District Attorney Bonnie Dumanis, Sheriff Bill Gore, San Diego Police Chief Shelley Zimmerman, Coronado Police Chief Jon Froomin and Chula Vista Police Chief David Bejarano for an event today at 4:30 p.m. at San Diego State University’s Center for Intercultural Relations, located in the Conrad Prebys Aztec Student Union at 6075 Aztec Circle Drive on the SDSU campus. A female Muslim student was assaulted on campus in November, when an unknown male, believed to be an SDSU student, pushed her and pulled her by her hijab while making hate comments and threats based on her religious appearance.
Today’s event coincides with “Islam Awareness Week,” April 13 to 19, sponsored by SDSU’s Muslim Student Association. Please see attached flyer for more information.
“San Diego has not been spared by this disturbing trend,” U.S. Attorney Duffy noted. “It is particularly troubling that these incidents are often directed at Muslim women because their use of a headscarf or hijab targets them for hateful insults and physical abuse. In fact, many Muslim women feel so unsafe that workshops have sprung up throughout the country to train them in self-defense techniques. I am gratified that my law enforcement colleagues, both here in San Diego and around the nation, are taking a stand against the wave of ignorant hatred that has caused so many law abiding members of our Muslim community to fear for their safety.”
“The San Diego District Attorney's Office continues to aggressively prosecute all hate crimes occurring within our county,” said District Attorney Bonnie Dumanis. “We condemn all hate crimes, including the apparent recent spike in hate crimes targeting those victims perceived to be Muslim. We will continue to work closely with both the Muslim community and our law enforcement partners to apprehend and hold accountable any who criminally violate the civil liberties of our citizens.”
“This country was founded on priceless freedoms,” said Sheriff Bill Gore. “The Bill of Rights set forth these freedoms that we enjoy - freedom of religion, freedom of speech, freedom of assembly, and freedom of the press are a few. As public safety officers, it is our duty to ensure everyone enjoys the same rights – regardless of their faith, gender, or nationality. There are no exceptions to the first ten amendments to the U. S. Constitution.”
“Public safety is a shared responsibility between our police department and our community,” said San Diego Police Chief Shelley Zimmerman. “Our community policing philosophy emphasizes working in partnership with all of our communities who we so proudly serve. The information shared will only help to enhance our efforts to keep San Diego one of the safest big cities in the United States.”
Similar acts of hate have occurred around the country.
A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group.
Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district.
Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new intiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students.
This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalism and arson targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
Two Executives at Investment Advisory and Management Firm Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations, New York Field Office, announced today that FRED ELM, a/k/a “Frederic Elmaleh,” the founder and manager of Elm Tree Investment Advisors LLC, was arrested this morning in Florida on securities fraud and wire fraud charges stemming from his and Chief Operating Officer AHMAD NAQVI’s scheme to defraud investors in multiple funds created and controlled by ELM and NAQVI. Among other illicit activity, ELM and NAQVI fraudulently induced more than 50 investors to invest over $17 million based on the false representation that ELM and NAQVI would invest that money, through the funds, in the shares of privately held technology companies, like Twitter, Inc., Alibaba Group Holding Limited, and Uber Technologies, Inc. ELM was presented this morning in federal court in Fort Lauderdale, Florida, before United States Magistrate Judge Alicia O. Valle. NAQVI remains at large.
U.S. Attorney Preet Bharara said: “Fred Elm and Ahmad Naqvi claimed that through their business relationships with elite venture capital firms they could generate profits from well-timed investments in privately-held technology companies. But as alleged, Elm and Naqvi never returned a penny of profit, spending much of the $17 million of investor money to fund their own high life and pay back other defrauded investors. As alleged, while promising investors high performing returns, Elm instead took the money and put high-performance sports cars – a Bentley, Maserati and Range Rover – in his own garage. Thanks to the dedicated Homeland Security Investigations agents with the El Dorado Task Force and our partners at the SEC, Elm and Naqvi are now done defrauding investors.”
Special Agent in Charge Angel M. Melendez said: “These individuals allegedly defrauded investors out of more than $17 million dollars by falsely representing the ability to invest in privately held technology companies, when in reality they used the money to buy homes, luxury cars, and expensive jewelry. HSI and its El Dorado Task Force partners are committed to fighting financial frauds and to hold accountable the people that commit them.”
According to the four-count Complaint[1] unsealed today in Manhattan federal court:
From at least June 2013 through December 2014, ELM and NAQVI engaged in a scheme to defraud investors in funds that ELM and NAQVI created and controlled at Elm Tree Investment Advisors LLC (“ETIA”), where ELM was the founder and manager, and NAQVI was the chief operating officer. ELM and NAQVI raised more than $17 million from over 50 investors in four limited partnerships for which ETIA acted as the fund manager: Elm Tree Investment Fund, LP; Elm Tree Emerging Growth Fund, LP; Elm Tree ‘e’Conomy Fund, LP; and Elm Tree Motion Opportunity, LP (collectively the “Elm Tree Funds”).
ELM and NAQVI falsely represented that the Elm Tree Funds used investor capital to purchase shares in privately held technology companies before their initial public offerings (“IPOs”). These companies included Twitter, Inc., Alibaba Group Holding Limited, Uber Technologies, Inc., Square, Inc., Pinterest, Inc., and GoDaddy Group, Inc. Moreover, ELM and NAQVI falsely represented that they had access to these pre-IPO shares because of their business relationships with leading venture capital firms, such as Kleiner Perkins Caufield & Byers, Benchmark Capital, and Silver Lake Management, L.L.C. In truth and in fact, ELM and NAQVI did not invest in the pre-IPO shares of these companies and did not have relationships with these venture capital firms.
ELM and NAQVI comingled the approximately $17 million that was invested in the Elm Tree Funds in a single investment account, and then invested only a portion of the money, approximately $7.1 million. At no point did any of the Elm Tree Funds return a profit. Instead, for example, between January 2014 and November 2014, the Elm Tree Funds lost approximately $3.9 million in trading.
Moreover, of the investor funds that ELM and NAQVI did not lose in securities trading, ELM routinely converted investor funds to his own use in the form of cash withdrawals and to pay personal expenses, including to purchase a $1.75 million home, high-end furnishings, and other personal items, such as jewelry, daily living expenses, and luxury automobiles, including a Bentley, a Maserati, and a Range Rover.
The conversion of investors’ funds was contrary to the representations that ELM and NAQVI made to investors concerning their and ETIA’s fees. ELM and NAQVI falsely represented that they and ETIA would take a two percent annual management fee plus 20 percent of any profits that the Elm Tree Funds earned. In truth and in fact, ELM converted investor money that far exceeded the two percent management fee. Moreover, because the Elm Tree Funds never returned a profit, ELM, NAQVI, and ETIA were not entitled to a percentage of any profits.
ELM and NAQVI also used approximately $5.2 million of new investor funds to make payments to earlier investors in a Ponzi-like fashion.
To prevent or forestall redemptions, and continue to raise money to fund their scheme, ELM and NAQVI also generated fictitious account statements and also made oral and written misrepresentations that their trading strategies were generating consistently positive returns.
For example, beginning in mid-2013, ELM and NAQVI began to solicit Victim-1 to invest with ETIA in the Elm Tree Funds. On June 11, 2013, NAQVI sent Victim-1 a series of e-mails regarding the Elm Tree Emerging Growth Fund, in which he falsely represented, among other things, that the fund would invest in pre-IPO Twitter shares, and that ELM, NAQVI, and ETIA had “key contacts” with venture capital firms like Kleiner Perkins Caufield & Byers and Benchmark Capital. ELM and NAQVI subsequently had in-person meetings and telephone calls with Victim-1 about this investment. On October 9, 2013, Victim-1 invested approximately $52,500 in the Elm Tree Emerging Growth Fund. Following Twitter’s IPO on November 6, 2013, Twitter’s stock price rose, and NAQVI subsequently told Victim-1 that ELM, NAQVI, and ETIA had used an options strategy to lock in Victim-1’s profits in Twitter. Because the fund had not invested in pre-IPO Twitter shares, there were no profits to lock in. Thereafter, ELM and NAQVI sent fraudulent account statements to Victim-1, including one sent on March 7, 2014. The statement falsely indicated that Victim-1’s investment in the fund was valued at $274,550 (up from $52,500), and that the Elm Tree Emerging Growth Fund was valued at $68,115,855.
ELM and NAQVI made similar misrepresentations with respect to Victim-1’s subsequent investments in the Elm Tree ‘e’Conomy Fund and the Elm Tree Motion Opportunity, falsely indicating that those funds invested in Alibaba Group Holding Limited, Uber Technologies, Inc., Square, Inc., Pinterest, Inc., and GoDaddy Group, Inc., and that Victim-1’s investments were growing. ELM and NAQVI also falsely represented that the value of the Elm Tree ‘e’Conomy Fund as of December 12, 2014, was $125,484,750 and that the value of the Elm Tree Motion Opportunity as of December 18, 2014, was $77,286,220 – falsely claiming that the total value of the Elm Tree Funds was more than $270 million.
* * *
ELM, 46, was arrested this morning at his home in Hollywood, Florida. NAQVI, 47, remains at large. ELM and NAQVI are each charged with one count of securities fraud, one count of wire fraud conspiracy, and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. Each is also charged with one count of securities fraud conspiracy, which carries a maximum sentence of five years in prison. The charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offenses. 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 work of HSI New York’s El Dorado Task Force, and thanked the U.S. Securities and Exchange Commission for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Joshua A. Naftalis is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Twin Cities Man Charged with Selling Heroin That Resulted in Death and Conspiring to Sell HeroinRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging JAIME EDWARD MCCLELLAN, a/k/a “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 31, for conspiring to distribute heroin and selling heroin that resulted in the death of at least one person. MCCLELLAN is charged with conspiracy to distribute heroin, distribution of heroin resulting in death, distribution of heroin, possession with intent to distribute heroin, using and carrying a firearm during and in relation to a drug trafficking crime, and felon in possession of a firearm.
“Heroin continues to threaten people’s lives,” said U.S. Attorney Luger. “This indictment marks the first time my office has charged a defendant with distributing heroin resulting in death. As our state continues to grapple with the dangers of heroin and other harmful drugs, law enforcement will remain vigilant in tracking down and prosecuting dealers.”
According to the indictment and documents filed in state court, on October 23, 2015, MCCLELLAN sold heroin to a victim in Medina, Minn. The defendant warned the victim to be careful while using the heroin that night because it was “good stuff.” The defendant was arrested on December 16, 2015, at which time he had in his possession at least 15 grams of heroin and approximately $400,000 in cash.
According to the indictment, between January 2014 and December 2015, MCCLELLAN conspired with others in Minnesota to distribute more than two pounds of heroin. In December 2015, MCCLELLAN sold heroin on at least four separate occasions to undercover law enforcement agents. When arrested on December 16, 2015, the defendant was in possession of 10mm semi-automatic pistol, which he was prohibited from owning because he had previously been convicted of a felony.
This case is the result of an investigation conducted by the Anoka-Hennepin Narcotics and Violent Crime Task Force, West Metro Drug Task Force, Anoka County Sheriff’s Office, Hennepin County Sheriff’s Office, Sherburne County Sheriff’s Office, Blaine Police Department, Coon Rapids Police Department, Elk River Police Department, Maple Grove Police Department, Medina Police Department, Mounds View Police Department, and U.S. Drug Enforcement Administration.
Assistant U.S. Attorney David Steinkamp is prosecuting the case.
Defendant Information:JAIME EDWARD MCCLELLAN, a/k/a, “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 31
Brooklyn Park, Minn.
Charges:
- Distribution of heroin resulting in death, 1 count
- Conspiring to distribute heroin, 1 count
- Distribution of heroin, 4 counts
- Possession with intent to distribute heroin, 1 count
- Possession of a firearm during and in relation to a drug trafficking crime, 1 count
- Felon in possession of a firearm, 1 count
Tulsa Dentist Pleads Guilty to Money Laundering ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that WAYNE SCOTT HARRINGTON, age 67, of Tulsa, Oklahoma, pled guilty to an Information filed in the United States District Court for the Northern District of Oklahoma, charging him with MONEY LAUNDERING, in violation of Title 18, United States Code, Section 1957, punishable by up to 10 years imprisonment, a fine not to exceed $250,000.00 or twice the amount of the criminally derived property, 3 years of supervised release and a $100 special assessment.
The Information alleged that on or about June 5, 2012 HARRINGTON, a former dentist, laundered monies obtained from fraudulent billing to Medicaid during his practice of dentistry.
The scope of the federal investigation was limited to violations of federal law in relation to health care fraud. The fraudulent billing to Medicaid that provided the basis of the money laundering charge was based upon HARRINGTON billing for anesthesia services that were not administered by him.
Under Oklahoma Dental Board regulations, in order to administer general anesthesia or deep sedation, a dentist had to meet specific educational or certification requirements. Harrington met the requirements and was approved by the Oklahoma Dental Board to administer general anesthesia and deep sedation. Under Board regulations, a dental assistant cannot, under any circumstances, administer injectable local anesthesia or general anesthesia.
In order to bill Medicaid for anesthesia services, the administration of the anesthesia must be provided by a qualified medical professional. The Medicaid fraudulent billing alleged in the plea agreement occurred from April 3, 2012 through March 19, 2013. HARRINGTON billed Medicaid as though he administered the anesthesia when he did not.
The charge is a result of an investigation by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigative Services, Department of Defense – Office of Inspector General, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration and the Oklahoma Attorney General Medicaid Fraud Control Unit.
The Honorable Gregory K Frizzell, Chief Judge in the United States District Court for the Northern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
Assistant United States Attorney Melody Nelson and Assistant United States Attorney Edward Snow represented the United States.
Three Former Correctional Officers in Georgia Indicted for Roles in Beating InmateRead the Press Release
Former Augusta State Medical Prison correctional officers John Williams, Antonio Binns and Justin Washington were charged in the Southern District of Georgia with a civil rights violation for their alleged role in the beating of an inmate, known as C.V., on Feb. 13, 2014. Binns and Washington were also charged with one count of obstruction of justice.
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney Edward J. Tarver of the Southern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division made the announcement.
The indictment alleges that on Feb. 13, 2014, Williams, Binns and Washington assaulted C.V. while he was handcuffed behind his back. The indictment further alleges that Binns and Washington wrote false reports covering up the assault.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty. If convicted of the civil rights charge, each defendant faces a maximum sentence of 10 years in prison. The obstruction of justice counts carry a maximum sentence of 20 years in prison.
The case is being investigated by the FBI’s Augusta Resident Agency. The case is being prosecuted by Assistant U.S. Attorneys Charlie Bourne and C. Troy Clark of the Southern District of Georgia and Trial Attorney Angie Cha of the Civil Rights Division’s Criminal Section.
Williams et al Indictment
Three Former Correctional Officers from Augusta State Medical Prison Indicted for Roles in Beating InmateRead the Press Release
AUGUSTA, GA – Former Augusta State Medical Prison correctional officers John Williams, Antonio Binns and Justin Washington were charged in the Southern District of Georgia with a civil rights violation for their alleged role in the beating of an inmate, known as C.V., on Feb. 13, 2014. Binns and Washington were also charged with one count of obstruction of justice.
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney Edward J. Tarver of the Southern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division made the announcement.
The indictment alleges that on Feb. 13, 2014, Williams, Binns and Washington assaulted C.V. while he was handcuffed behind his back. The indictment further alleges that Binns and Washington wrote false reports covering up the assault.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty. If convicted of the civil rights charge, each defendant faces a maximum sentence of 10 years in prison. The obstruction of justice counts carry a maximum sentence of 20 years in prison.
The case is being investigated by the FBI’s Augusta Resident Agency. The case is being prosecuted by Assistant U.S. Attorneys Charlie Bourne and C. Troy Clark of the Southern District of Georgia and Trial Attorney Angie Cha of the Civil Rights Division’s Criminal Section. Any questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Tax Charges Filed Against Montgomery County ManRead the Press Release
PHILADELPHIA - Francis J. Bass, 61, of Montgomery County, PA was charged today by Information with four counts of subscribing a false federal income tax return, announced United States Attorney Zane David Memeger. According to the Information, Bass willfully failed to report a substantial amount of income on his 2009 through 2012 tax returns.
If convicted the defendant faces a maximum possible sentence of 12 years in prison, one year of supervised release, a possible fine, restitution to the IRS, and a $400 special assessment.
The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Terri A. Marinari and David J. Ignall.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Syracuse Man Indicted for Distributing Heroin that Killed WomanRead the Press Release
SYRACUSE, NEW YORK - An indictment filed today charges Anthony Vita, 36, of Syracuse, New York, with distributing heroin that resulted in the death of another person.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration (DEA).
The indictment alleges that Vita distributed heroin on or about November 7, 2015 to the victim, described in a criminal complaint as being a 24-year-old resident of Camillus, New York, who was five months pregnant when Vita provided her heroin that led to her overdose death.
U.S. Attorney Richard S. Hartunian said: "Opioid addiction and overdose deaths have become the single greatest danger to the lives and health of our citizens. Our resolve to confront this epidemic and the criminals who supply it is unwavering and we will not hesitate to use all of the tools the law provides us with in this fight."
DEA Special Agent in Charge James J. Hunt stated, "Every aspect of drug trafficking is heinous; but selling a fatal combination of heroin and fentanyl to a mother and unborn child shows how inconsequential drug traffickers view heroin use. The latest trend in opiate abuse- a toxic combination of heroin and fentanyl- is on a deadly rampage throughout the nation resulting in too many lives taken too early. This arrest only highlights the sad extent a dealer will go to in order to make a profit off the sale of drugs."
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
The charge filed against Vita carries a minimum term of imprisonment of 20 years, a maximum sentence of life imprisonment, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Vita was arrested by DEA agents on March 15, 2016, in Virginia Beach, Virginia. The criminal complaint filed against Vita alleged that agents recovered a text message exchange between Vita and the victim on the night of her death that included arrangements for them to meet so he could sell her heroin and a hypodermic needle.
Following his arrest, Vita appeared in Federal Court in Virginia and was transported to Syracuse by the United States Marshals Service. The defendant had an initial appearance in Syracuse before United States Magistrate Judge David E. Peebles on April 1, 2016. Following a hearing on April 6, 2016, Judge Peebles ordered Vita detained without bail pending trial.
This case is being investigated by the U.S. Drug Enforcement Administration (DEA), Syracuse Resident Agency (with Assistance from DEA Norfolk, Virginia), the Onondaga County Sheriff Department and the Town of Camillus (New York) Police Department, and is being prosecuted by Assistant U.S. Attorney Carla Freedman.