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14 April 2016
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.
Supplier of Heroin Intended for Distribution in Maryland Sentenced to 13 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Taofeeq Ogunlana, age 39, of Chicago, Illinois today to 13 years in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, from January to July 2015, Ogunlana met with Vladimir Lumelsky and supplied him with bulk quantities of heroin. Lumelsky would travel from the Baltimore area to the Chicago area, where he and Ogunlana would meet. Most recently, on July 12, 2015, Ogunlana met with Lumelsky at a hotel and supplied him with more than two kilograms of heroin. While Lumelsky and a companion were driving back from Chicago to the Baltimore area, they were stopped by law enforcement on Interstate 70 in western Maryland. Law enforcement seized more than two kilograms of heroin, which was intended to be redistributed to customers in the Baltimore area.
Ogunlana agreed that he and other co-conspirators distributed and possessed with intent to distribute more than three kilograms of heroin during the conspiracy.
Co-defendants Vladimir Lumelsky, age 41, of Pikesville, Maryland; Lawrence Bibbs, age 68, of Baltimore and Rodell Womack, age 49, of Baltimore previously pleaded guilty to their participation in the drug conspiracy. Lumelsky and Bibbs are scheduled to be sentenced on June 10, 2016 at 11:00 a.m. and May 20, 2016 at 12:30 p.m., respectively. Judge Motz sentenced Womack to four years in prison on April 11, 2016.
United States Attorney Rod J. Rosenstein praised DEA and the Baltimore City and County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Statewide Initiative Targets Distributors of Heroin and Opioids That Cause Overdose DeathsRead the Press Release
United States Attorney Deirdre M. Daly, Deputy Chief State’s Attorney Leonard C. Boyle and Special Agent in Charge Michael J. Ferguson of the Drug Enforcement Administration today announced a statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Beginning in January 2016, the DEA’s New Haven Tactical Diversion Squad, state and local police, and a team of prosecutors from the U.S. Attorney’s Office, have investigated approximately 20 heroin and opioid overdoses that have occurred in Connecticut. Most of the overdoses have resulted in death. Currently, there are ongoing investigations of overdoses that occurred in Danbury, Derby, Enfield, Greenwich, Middletown, Newtown, New Haven, Norwalk, Norwich, Shelton, Stamford, Vernon, Weston, Willimantic and Woodbridge.
As part of this initiative, the U.S. Attorney’s Office and DEA have developed a protocol for police that respond to heroin and opioid overdose deaths. The protocol calls for local law enforcement to perform time-sensitive investigative techniques and preserve all evidence at the scene of an overdose death. Police also are asked to contact DEA at the early stages of an investigation, and ensure that an autopsy of the decedent is performed. The DEA and local police will then jointly investigate to determine the events leading up to the death, the source of the drug involved, and the composition of the drug. Individuals responsible for distributing drugs causing overdose deaths will be prosecuted.
“We are combatting a tragic opioid epidemic that is plaguing Connecticut and much of the country,” said U.S. Attorney Daly. “Deaths caused by heroin or prescription opioids have devastated hundreds of families from every corner of our state. This statewide initiative will enable law enforcement to quickly determine if a highly toxic drug is on the street and take steps to identify the source of the drug in order to keep it out of the hands of vulnerable users. The police protocol will allow investigators to preserve evidence critical to identifying and convicting those responsible for distributing these drugs. Our aim is to prevent additional deaths and to hold accountable those who distribute these deadly drugs. We thank the DEA for their invaluable leadership in this initiative and appreciate the significant support provided by Connecticut’s local police departments, the Connecticut State Police and the State’s Attorneys.”
“We hope that the use of this protocol will enable law enforcement to effectively track the source of the most dangerous brands of heroin being distributed in Connecticut,” said Deputy Chief State’s Attorney Boyle.
“While those suffering from the disease of heroin addiction need access to treatment and recovery, those responsible for distributing these lethal drugs need to be held responsible for their actions,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA and its federal, state and local partners are committed to bringing to justice those that distribute this poison.”
To date, this initiative has resulted in federal charges against
- Reginald Miles, Jr., 25, of Waterbury, Wade Pettingill, 23, of Middlebury, and Kevin Foster, 23, of Middlebury, in connection with the heroin overdose death of a 22-year-old man in Woodbridge on November 19, 2015;
- Tahir Farid, 21, and Ryan Looney, 19, both of Hamden, in connection with the oxycodone overdose of a 22-year-old man in Weston on January 5, 2016;
- Bradley Commerford, 20, of Derby, in connection with the heroin overdose death of a 23-year-old man in Derby on February 17, 2016, and two non-fatal heroin overdoses of an 18-year-old man and a 22-year-old man in Shelton on February 16, 2016;
- Ryan Budd, 25, of Bethel, in connection with a non-fatal heroin overdose of a 25-year-old female in Danbury on March 1, 2016.
As part of this statewide initiative, on April 8, 2016, the DEA and U.S. Attorney’s Office received funding from two sources for heroin and opioid overdose investigations. First, the DEA received Department of Justice Organized Crime Drug Enforcement Task Force (OCDETF) funding in an investigation focused on large-scale sources of heroin being distributed in Connecticut. Second, in support of the statewide heroin initiative, the DEA received funding under the National Heroin Strategic Initiative. This funding is being used to pay overtime, purchase equipment, fund training, and assist in the investigation of seized cellular telephones.
U.S. Attorney Daly noted that the U.S. Attorney’s Office also continues to work with the DEA, FBI, HSI and other federal, state and local law enforcement to target high volume heroin and oxycodone trafficking organizations. On March 2, 2016, a federal grand jury in Hartford returned an indictment charging a Hartford grocery store owner and two associates with trafficking heroin. During the investigation, investigators seized more than 20 kilograms of heroin destined for Connecticut and approximately $900,000 in cash.
In another ongoing investigation, 11 New Haven-area residents were recently charged with conspiring to steal the personal identification information of over 50 doctors and medical professionals in order to create fraudulent prescriptions to obtain and distribute more than 100,000 oxycodone pills.
In addition, the U.S. Attorney’s Office continues to prioritize the prosecution of medical professionals who prescribe prescription narcotics outside the scope of accepted medical practice. On November 4, 2015, John Katsetos, a doctor who practiced medicine for more than 20 years in Stamford and Milford was sentenced to 84 months in prison. The investigation revealed that from November 2011 to October 2013, Dr. Katsetos authorized more than two million dosage units of Schedule II through IV controlled substances to more than 2000 patients. His conduct created opioid addictions in dozens of patients, led to the overdose death of a New York woman, and supplied individuals with a vast quantity of prescription pills that they illegally distributed to others.
“While policy makers and mental health officials, with our full support, work to address issues aimed at lessening the demand for illegal opioids, we in law enforcement will continue to marshal resources to address the supply side of the equation,” said U.S. Attorney Daly. “We will tirelessly investigate and disrupt the activities of heroin traffickers and prescription pill distributors who put profit above public health and safety.”
U.S. Attorney Daly stressed that charges are only allegations and not evidence of guilt. Each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA’s New Haven Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
- Reginald Miles, Jr., 25, of Waterbury, Wade Pettingill, 23, of Middlebury, and Kevin Foster, 23, of Middlebury, in connection with the heroin overdose death of a 22-year-old man in Woodbridge on November 19, 2015;
South Charleston woman sentenced to Federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A South Charleston woman was sentenced today to three years in federal prison for a methamphetamine crime, announced Acting United States Attorney Carol Casto. Jonda Grandoni, 52, previously pleaded guilty in January 2016 to possession with intent to distribute methamphetamine.
Grandoni admitted that on October 12, 2012, she arranged to have a package containing methamphetamine shipped via FedEx to an individual who would then deliver the package to Grandoni for distribution. Law enforcement intercepted the package before it was delivered and found that it contained 11.5 grams of methamphetamine. Officers then set up a controlled delivery of the package to Grandoni, who accepted the package and was arrested. In addition to the methamphetamine recovered on October 12, 2012, Grandoni admitted that she was responsible for the distribution of over 520 grams of additional methamphetamine.
This case was investigated by the Metropolitan Drug Enforcement Network Team and the Putnam County Sheriff’s Department. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and other drugs in communities across the Southern District.
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Seven Indicted for Gun Thefts from Multiple Firearms DealersRead the Press Release
ROME, Ga. – Seven defendants have been indicted on federal charges of a conspiracy to steal firearms from the premises of federal firearms dealers, possession of multiple stolen firearms, and theft from firearms dealers in the cities of Tallapoosa, Thomson, Monroe, Warner Robins, Dalton, Macon, LaGrange, and Athens, Georgia as well as Heflin, Alabama.
“Thefts from firearms dealers have become a serious issue in our district and elsewhere, and sometimes stolen firearms are used to commit other crimes,” said U. S. Attorney John A. Horn. “The arrests and indictment of these seven individuals is a significant step in solving these crimes and helping to prevent the distribution of stolen firearms in our community.”
“This is another reminder that ATF and our law enforcement partners will remain on the frontlines of preventing violent crime and not allow criminal behavior to threaten the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.
According to U.S. Attorney Horn, the charges, and other information presented in court: Between October 2015 and December 2015, there were seven thefts and three attempted thefts from firearms dealers in Northwest Georgia, along with other parts of the state, as well as in the state of Alabama. The indictment alleges that during the investigation, these seven defendants were identified as the ones who committed the burglaries. The perpetrators always struck at night. They entered either by driving a stolen car through the storefront, or using bolt cutters and a window punch to break into the businesses. Approximately 130 guns were stolen in these thefts, and there is evidence that some of the conspirators sold some of the stolen guns.
ATF agents worked closely with local law enforcement to connect the thefts and develop information on the conspirators, including the Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robbins Police Department, Lagrange Police Department, and the Pearl, Mississippi Police Department.
The following defendants were arraigned on April 13, 2016, before United States Magistrate Judge Walter E. Johnson:
- Terry Eugene Brown, 26, of Atlanta, Georgia, has been charged with conspiracy to possess and steal firearms, three counts of theft of firearms from federally licensed dealers, three counts of possession of stolen firearms, and unlawful possession of firearms while pending felony indictment .
- Jakeisia Miller, 19, of Atlanta, Georgia has been charged with conspiracy to possess and steal firearms, three counts of aiding and abetting the theft of firearms from federally licensed dealers, and three counts of aiding and abetting the possession of stolen firearms.
- Demontra Sharod Lucear, 26, of Atlanta, Georgia has been charged with conspiracy to possess and steal firearms.
- Dillon James Leborgne, 21, of Atlanta, Georgia conspiracy to possess and steal firearms, three counts of theft of firearms from federally licensed dealers, and three counts of possession of stolen firearms.
- Eric Jerome Moore, 22, of Atlanta, Georgia, has been has been charged with conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, one count of possession of stolen firearms, and unlawful possession by a convicted felon.
The following two defendants will be arraigned on May 3, 2016:
- Jacquez Miller, 23, of Atlanta, Georgia has been charged conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, and one count of possession of stolen firearms.
- Jameel Yusef Drinkard, 35, of Atlanta, Georgia, has been charged with conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, one count of possession of stolen firearms, and unlawful possession by a convicted felon.
Brown, Jakeisia Miller, Jacquez Miller, Lucear, Leborgne, Moore, and Drinkard were indicted by a federal grand jury on March 22, 2016.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robbins Police Department, Lagrange Police Department, and the Pearl, Mississippi Police Department.
Assistant United States Attorneys Jennifer Keen and Katherine M. Hoffer are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Salem Man Pleads Guilty to Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A Salem, Virginia man, who trafficked cocaine from Atlanta into the Roanoke Valley, pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced today.
Broderick Lamar Shovely Jr., 36, of Salem, Virginia, pled guilty yesterday in District Court to one count of possessing with the intent to distribute 500 grams or more of cocaine and one count of possessing a firearm in furtherance of a drug trafficking crime.
“The United States Attorney’s Office will continue to work with our partners in law enforcement to take the dangerous combination of drugs and guns off our streets,” United States Attorney John P. Fishwick Jr. said today. “This defendant was a drug trafficker who brought large amounts of cocaine into Roanoke and possessed an array of firearms while dealing. Our city is safer with him now in prison.”
According to evidence presented at yesterday’s hearing by Assistant United States Attorney Ashley B. Neese, law enforcement officers were conducting surveillance outside of Shovely’s residence in Salem, Virginia on June 6, 2014 after receiving information that he was selling crack cocaine. Officers observed Shovely leave his residence and a traffic stop was conducted on the car Shovely was driving. During that traffic stop and after being alerted by a free air sniff by a K9 officer, officers searched Shovely’s vehicle and found a .45 caliber handgun, a Glock .45 caliber handgun and a .380 caliber handgun. In addition, officers found two pieces of off-white chunky material. A search warrant for Shovely’s home was obtained and later executed, where officers found approximately 703 grams of cocaine hidden in a computer hard-drive in a bedroom. Multiple firearms, including one firearm located with the cocaine, were also found during the execution of the search warrant at Shovely’s residence.
After being provided his Miranda Rights, Shovely admitted to trafficking cocaine from Atlanta, Georgia to Roanoke, Virginia for at least the last year. Shovely admitted that he paid $19,800 for 18 ounces of cocaine from his source in Atlanta and would then transport that cocaine back to Roanoke for distribution. Shovely also admitted the cocaine was often cooked into crack cocaine and he would then sell it from a home on Gilmer Avenue in Roanoke.
The investigation of the case was conducted by the Salem Police Department, the Roanoke City Police Department, the Virginia State Police, the Drug Enforcement Agency, and the United States Marshals Service. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Realty and Property Ownership and Management Company Owner Pleads Guilty to Bankruptcy FraudRead the Press Release
PROVIDENCE, R.I. – Linda Davis Griffin, 48, of Warwick, owner of Vision Adventures, LLC, a Providence based property ownership and management company, pleaded guilty in federal court in Providence today to one count of alteration of bankruptcy records, admitting to the court that she falsified bank documents in order to conceal the conversion of bankruptcy estate funds to her own use.
Ms. Griffin Davis’ guilty plea is announced by United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to information presented to the court, in March 2013, Vision Adventures filed a voluntary bankruptcy petition with the U.S. Bankruptcy Court in Providence. The U.S. Bankruptcy Code requires that an authorized person file monthly operating reports with both the U.S. Trustee and the U.S. Bankruptcy Court. The monthly operating reports provide information regarding the income and expenses of the debtor and copies of related bank statements to substantiate the activity. Linda Davis Griffin is the sole member of Vision Adventures and was the authorized person to file monthly operating reports.
Appearing before U.S. District Court Chief Judge William E. Smith, Ms. Davis Griffin admitted to the court that several of the monthly operating reports she provided to the U.S. Trustee and the U.S. Bankruptcy Court contained altered bank records, making it appear that there was less money in Vision Adventure bank accounts than actually existed. According to information presented to the court, Ms. Davis Griffin provided the altered bank documents in order to conceal the fact that she converted a total of $25,480 of debtor funds for her own use.
Ms. Davis Griffin is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on July 15, 2016.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Assistant U.S. Attorney Gerard B. Sullivan.
The matter, investigated by the FBI, was referred to the United States Attorney’s Office by the U.S. Department of Justice Office of the United States Trustee for the Districts of Maine, Massachusetts and Rhode Island.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pleasant Hills Man Sentenced to 5 Years in Prison for Role in Cocaine Trafficking RingRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 60 months’ imprisonment on his conviction of conspiracy to distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Andre Collington, 44, of Pleasant Hills, Pa.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Andre Collington was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Collington.
Philadelphia Man Charged with Stealing Dead Mother's Retirement BenefitsRead the Press Release
PHILADELPHIA - Daryl McCall, 60, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for his mother, after his mother’s death in March 2009 until August 2013. The defendant’s alleged actions resulted in a loss to the government of approximately $52,314.
If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, up to three years of supervised release, restitution to the government of $52,314, a possible fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Lying on Gun FormsRead the Press Release
PHILADELPHIA - Somath Hom, 24, of Philadelphia, PA was charged today by Indictment with two counts of making false statements to a federal firearms licensee regarding guns he purchased on November 3 and November 9, 2015 from federal firearms licensees, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, a possible fine and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oklahoma Man Sentenced for Possession of a Firearm by a Prohibited Person and Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sand Springs, Oklahoma, man convicted of Possession of a Firearm by a Prohibited Person and Failure to Register as a Sex Offender was sentenced on April 4, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
As to the charge of Possession of a Firearm by a Prohibited Person, Garnette Titus, age 43, was sentenced to 77 months in custody, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. As to the Failure to Register as a Sex Offender charge, Titus was sentenced to 60 months in custody, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. The periods of custody and supervised release are to run concurrent to each other.
Titus was indicted for the charges on June 16, 2015. Titus pled guilty on August 24, 2015.
The charges related to Titus being in possession of a .380 pistol on March 18, 2015, near Pine Ridge, after having been previously convicted of felonies. Titus also failed to register as a convicted sex offender between April 1, 2014, and March 18, 2015. While Titus was unregistered, he assaulted a tribal corrections officer.
This case was investigated by the Bureau of Indian Affairs Division of Drug Enforcement, the Oglala Sioux Tribe Department of Public Safety, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Titus was immediately returned to the custody of the U.S. Marshals Service.
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Oklahoma City Man Sentenced to 188 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that PHILLIP EARL AMEY, a/k/a Crazy, age 34, of Oklahoma City, Oklahoma, was sentenced to 188 months imprisonment, followed by 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(l) and 841(b)(l)(A).
The Indictment alleged that beginning in or about July 2014, the exact date being unknown to the Grand Jury, and continuing until on or about April 7, 2015, within the Eastern District of Oklahoma and elsewhere, the defendant, PHILLIP EARL AMEY, a/k/a Crazy, did knowingly and intentionally conspire, confederate and agree together and with David Dean Cagle, Brandon Michael Jones, Gilbert Espinoza, a/k/a Snow, Jonathan Miranda, Jessica Suzanne Felix, a/k/a Sarah, and others, to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma City Police Department, Oklahoma Highway Patrol, McAlester Police Department, Checotah Police Department, McIntosh County Sheriff’s Department, District 18 District Attorney’s Drug Task Force, Bureau of Indian Affairs, United States Marshal Service, Bureau of Alcohol, Tobacco and Firearms, Federal Bureau of Investigation and the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Ohio Seminary Student Pleads Guilty, Admits Seeking Sex with Infants in TijuanaRead the Press Release
Assistant U. S. Attorney Alessandra Serano (619) 546-8104
NEWS RELEASE SUMMARY – April 13, 2016
SAN DIEGO – Joel Alexander Wright, a former seminary student from Ohio, pleaded guilty in federal court today, admitting that he attempted to adopt or purchase female infants and toddlers in Tijuana in order to sexually molest them.
In his plea agreement, Wright admitted that he was the author of numerous sexually explicit emails in which he describes to a cooperating witness and an undercover federal agent how he intended to sexually assault various children in Mexico, from infants up to 4 years old.
Wright admitted the following in his plea agreement:
Beginning in November of 2015, he placed ads on Craigslist Tijuana purporting to seek a female tour guide. When he received a response from a cooperating witness, he confided that he wanted to “adopt/own a baby girl (under the age of 3) and I want to have intercourse with her after I own her but don’t be telling people that…I won’t pay until I have seen the baby and I will pay the parents then…the cheapest baby under 3 would be good.”
In another email with an undercover federal agent, Wright admitted that he wrote he had “picked up an infant pain relief med and a pretty outfit which I think should fit the 1 or 2 year old.” He emailed that he “will try to find some lube here at the store that we can use.” He also wrote that he had purchased an American Airlines ticket to travel from Ohio to San Diego on January 29, 2016, arriving at 11:30 a.m.
On January 29, Wright deplaned at San Diego International Airport and called a number to the undercover agent stating that he had landed. Wright had two cell phones and a duffle bag. Inside the bag agents found baby clothes, sleep aids, bottles, toys, candy and lubricant.
Wright was arrested at the airport and has remained in custody since. He is scheduled to be sentenced on July 1, 2016 at 9 a.m. before U.S. District Judge Dana M. Sabraw.
“There are no words to describe the horror that might have happened, had this man carried out what he intended to do - sexually exploit and assault innocent toddlers and infants,” said U.S. Attorney Laura Duffy. “There is nothing more important on my agenda than keeping children safe from individuals who have a sexual interest in children both here in the United States and abroad from individuals who travel from the U.S. with that nefarious intent.”
“I commend our cybercrimes special agents whose tireless work during an exhaustive investigation has prevented further exploitation of innocent children by a significantly heinous, unspeakable form of child sexual predator activity,” said Dave Shaw, special agent in charge for HSI San Diego. “HSI is committed to working closely with our law enforcement partners both here and abroad to protect children from becoming victims of child sex predators.”
DEFENDANT Case Number: 16CR0354-DMS
Joel Alexander Wright Age: 23
SUMMARY OF CHARGE
Attempted Enticement of a Minor, in violation of Title 18, U.S. code Sec. 2422(b).
Maximum Penalty: Life in prison, with minimum mandatory 10-year sentence, maximum $250,000 fine, lifetime registration as a sex offender
AGENCY
New Orleans Man Sentenced to 22 Years in Prison for Selling Heroin, Including While Being Incarcerated in OPPRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LIONEL THOMAS, age 30, of New Orleans, was sentenced today after previously pleading guilty to an Indictment charging him with violations of the Federal Controlled Substances Act.
U.S. District Judge Kurt D. Engelhardt sentenced THOMAS to 264 months imprisonment, to be followed by 10 years of supervised release.
According to the court records, THOMAS conspired with others known and unknown to possess with the intent to distribute and to distribute one kilogram or more of a mixture or substance containing a detectable amount of heroin, a Scheduled I drug controlled substance. THOMAS admitted to using the phone system while incarcerated at the Orleans Parish Prison, where all calls are recorded, to further his drug trafficking activities. Law enforcement officers also seized over $60,000 from THOMAS during various stops and searches in the fall of 2013.
U.S. Attorney Polite praised the work of the Special Agents of the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI), with assistance from Louisiana State Police and the New Orleans Police Department in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
New Orleans Man Sentenced for Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRIN MCCRAINEY, a/k/a “Skutta,” a/k/a “Darren McCraney,” age 33, of New Orleans, was sentenced today after pleading guilty to a one-count superseding Bill of Information for a violation of the Federal Gun Control Act.
U.S. District Judge Ivan L.R. Lemelle sentenced MCCRAINEY to 84 months, followed by five years of supervised release, and/or a fine of $250,000, and a $100 special assessment fee. MCCRAINEY will be surrendered to the custody of the Bureau of Prisons.
According to court documents, on April 4, 2015, MCCRAINEY brandished a firearm during and in relation to a drug trafficking crime as he robbed the victim of a quantity of marijuana, which affected interstate commerce.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Former Special Assistant United States Attorney Brian Ebarb was in charge of the prosecution.
Muse Man Sentenced to 48 Months for Firearm Possession, 12 Months for Illegally Taken WildlifeRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that RICKY DALE BARRON, age 61, of Muse, Oklahoma, was sentenced to 48 months imprisonment, followed by 3 years of supervised release for Felon in Possession of Firearm, in violation of Title 18, United States Code, Section 641 and 12 months imprisonment, followed by 1 year of supervised release for Interstate Transportation of Illegally Taken Wildlife, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(2). The sentences will be served concurrently.
The charges arose from an investigation by the United States Forest Service.
The Information filed in December, 2015, alleged that on or about October 25, 2015, within the Eastern District of Oklahoma, the defendant, RICKY DALE BARRON, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Remington Model 1100, 12 gauge, shotgun, serial number N280403V, which had been shipped and transported in interstate commerce. It further alleged that From on or about December 14, 2014 to on or about April 2, 2015, within the Eastern District of Oklahoma, and elsewhere, the defendant, knowingly transported wildlife, to wit: a black bear and parts thereof, in interstate commerce from Oklahoma to Arkansas, when in the exercise of due care, the defendant should have known that said wildlife was taken and possessed in a violation of and in a manner unlawful under the laws and regulations of Oklahoma.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Members of Rochester Credit Card Fraud and Identity Theft Ring Sentenced to Federal PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Shawn Smith, 28, Odell Edwards, 31, Sebastian Ferrell, 32, and Courtney Campbell-Cooper, 27, all of Rochester, NY, who were convicted of conspiracy to commit bank fraud and aggravated identity theft, were sentenced by Chief U.S. District Judge Frank P. Geraci. The sentences included: • Smith-26 months in prison; • Edwards-77 months in prison; • Ferrell-77 months in prison; and
• Campbell-Cooper-51 months in prison.
Ferrell also received an additional 14 months in prison for violation of supervised release. The defendants were also ordered to pay a total of $435,274 in restitution to Discover Bank as part of their sentences.
“This case demonstrates why it is so important to regularly and consistently keep track of your credit cards and financial statements," said U.S. Attorney Hochul.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that in April 2014, the United States Secret Service began investigating reports of access device fraud and identity theft in the Rochester area. They were assisted by the United States Postal Inspection Service, Rochester Police Department, Monroe County Sheriff’s Office, and the Brighton Police Department. The investigation involved fraudulently obtained credit cards issued by Discover Financial Services being used at various locations in the Western District of New York and elsewhere.
The scheme involved legitimate credit card accounts which were compromised. The financial institution would receive a telephone call requesting that a particular name be added to the account as an authorized user and that a new credit card be issued. Other times the request was simply for the issuance of replacement cards in the actual account holder’s name. The new cards were sent to various addresses in Rochester and were then intercepted by subjects of the fraud ring, including the defendants. The investigation revealed that the true holders of the credit card accounts had not authorized the issuance of new cards in these names or the issuance of replacement cards, and had not authorized the subsequent use of these credit cards. The investigation linked Smith, Edwards, Ferrell, and Campbell-Cooper to multiple fraudulent credit card accounts, and showed that they were using other people’s credit accounts to make unauthorized purchases around the country.
As the defendants received the fraudulent cards, they immediately made fraudulent purchases and cash withdrawals in area stores and banks. On one visit to a local Best Buy alone, the defendants purchased over $6,000 worth of electronics using fraudulent credit cards. The cards were also used extensively at high end retailers and at various designer stores at the Eastview mall. The defendants also visited area banks and ATM machines to make fraudulent cash withdrawals using the stolen cards and false identity documents.
In addition to fraudulent purchases made in the Rochester area, some of the defendants traveled outside of New York with the stolen cards. Surveillance video recovered during the investigation showed the defendants making fraudulent purchases at hotels, stores, and casinos in Illinois, Florida, and Ohio. As a result of the scheme, the defendants stole more than $435,000.
U.S. Attorney Hochul further stated: “The best defense against fraud is knowing how to detect and thwart the wide variety of criminals who seek to steal your identity and money. Visit stopfraud.gov to learn how to identify fraud and how to protect against such schemes”
The sentencings are the culmination of a multi-state investigation, coordinated by Special Agents with the Rochester Resident Office of the United States Secret Service, under the direction of C. Todd Laster, Special Agent in Charge; Inspectors with the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector In Charge of the Boston Division; Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli; Deputies with the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn; and Officers with the Brighton Police Department, under the direction of Chief Mark Henderson.Mass. Resident Admits to Reselling Stolen Firearms Purchased with Fraudulent ChecksRead the Press Release
PROVIDENCE, R.I. – Edwin William Rosa, 45, of Peabody, Mass., pleaded guilty in federal court in Providence, R.I., today to possession of stolen firearms. Rosa admitted to the court that on several occasions he purchased firearms from registered dealers in Massachusetts using bogus bank checks and then sold the stolen guns to firearms dealers in Rhode Island.
Appearing before U.S. District Court Chief Judge William E. Smith, Rosa admitted to the court that between September 8 and September 30, 2015, he used personal checks from closed bank accounts to purchase eight firearms from registered firearms dealers in Massachusetts. Rosa then sold the firearms to registered firearms dealers in Rhode Island for immediate payment in cash or by check.
Rosa’s guilty plea is announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rosa is scheduled to be sentenced on July 15, 2016.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF, with the assistance of the Smithfield, R.I., and Seekonk, Fall River and Somerset, Mass., Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Manhattan U.S. Attorney Announces Charges Against 11 Individuals for Money Laundering CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, David Schnorbus, Special Agent-in-Charge of the New York Field Office of the United States Department of State, Diplomatic Security Service (“DOS-DSS”); Angel M. Melendez, the Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations, New York Field Office (“HSI”); Shantelle P. Kitchen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (“IRS-CI”); and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS” and together with DSS, HSI, and the IRS, the “Investigating Agencies”), announced charges today against 11 individuals, RYAN JUNGHUN KIM, a/k/a “Ryan Junghun Choi,” a/k/a “Ki Soo Choi,” a/k/a “Lion King,” HOI HAM, SUNG HWAN KIM, a/k/a “Sean Kim,” YOUNG HO JOO, a/k/a “Jay Joo,” MI SOOK KIM, SU YEON YUN, a/k/a “Bebe,” HYUN JOO LEE, HYUN JOO SHIN, YING AI LI, a/k/a “Sung Soon Kim,” JIN AE JUNG, a/k/a “Jaqueline Kim,” a/k/a “Jackie Kim,” and MOOJA PETERSON, a/k/a “MJ,” for laundering in excess of $1.4 million in illegal proceeds between 2011 and 2016. These illegal proceeds were generated by at least 10 illegal brothels in and around the New York City metro area that the defendants owned, operated, managed, or advertised.
HOI HAM, YOUNG HO JOO, SU YEON YUN, HYUN JOO SHIN, YING AI LI, and JIN AE JUNG and were arrested in the New York City metro area today. SUNG HWAN KIM was arrested in Pennsylvania today. These defendants will be presented in the Southern District of New York today before United States Magistrate Judge James L. Cott. RYAN JUNGHUN KIM was arrested in Seoul, South Korea. MI SOOK KIM, MOOJA PETERSON, and HYUN JOO LEE have not yet been apprehended.
Manhattan U.S. Attorney Preet Bharara said: “Eleven individuals are charged with laundering more than a million dollars of proceeds from their illegal commercial sex businesses. I want to thank our federal and local law enforcement partners and recognize the assistance of the Seoul Metropolitan Police Agency.”
Special Agent-in-Charge David Schnorbus said: “The dismantling of this international conspiracy, stretching from South Korea to the United States, is an important achievement made possible by the coordinated efforts of all agencies supporting this investigation and prosecution. Diplomatic Security’s global presence enables our organization to partner with foreign law enforcement, and the investigative support of the Seoul Metropolitan Police Agency highlights that global reach.”
Special Agent in Charge Angel M. Melendez said: “Today's arrests and search warrants are the result of the great partnership between HSI and its law enforcement partners to shut down a large international prostitution and money laundering organization operating illegal brothels here in New York. Sex businesses like these pose a threat to public safety in our communities and must not be tolerated.”
Special Agent in Charge Shantelle P. Kitchen said: “Money laundering is not just a crime committed by drug dealers. The kinds of criminal enterprises that launder money to conceal illicit proceeds and to keep their operations going are as diverse as the ways that money can be laundered. IRS-Criminal Investigation is always ready to bring its financial investigative expertise to money laundering investigations of all kinds.”
Inspector-in-Charge Philip R. Bartlett said: “These individuals operated an illegal prostitution ring, lining their pockets with the profits from the world’s oldest profession. Today's arrests are yet another example of law enforcements commitment to identify, disrupt and dismantle organized criminal enterprises.”
According to the Complaint[1] unsealed today in Manhattan federal court:
Since 2012, the Investigating Agencies have been investigating a group of brothels (the “Brothels”) operating in and around New York. Each of the Brothels is independently owned and operated, but the owners of the Brothels work cooperatively through, among other things, the sharing of approved customer lists and information. Defendants RYAN JUNGHUN KIM, HOI HAM, SUNG HWAN KIM, YOUNG HO JOO, MI SOOK KIM, SU YEON YUN, HYUN JOO LEE, HYUN JOO SHIN, YING AI LI, JIN AE JUNG, and MOOJA PETERSON are individuals who operated the Brothels, including advertisers, website developers, brothel owners, and brothel managers.
The defendants typically used websites associated with the Brothels to advertise the women prostituted in the Brothels (the “Brothel Websites”). The Brothel Websites describe, among other things, specific services that the Brothels offer, including a service called the “girlfriend experience.” In addition to the Brothel Websites, the Brothels used an online aggregator of advertisements to advertise the Brothels (the “Advertising Website”). The management of online advertising and payment for this advertising was coordinated by the defendants. The defendants would regularly email among themselves sexually explicit photographs of women prostituted in the Brothels to be used in online advertising, as well as instructions for how certain posts should appear. They would also exchange emails concerning, among other things, advertising for the Brothels and payment of advertising fees to the Advertising Website.
To pay for these advertising fees, the defendants would use hundreds of thousands of dollars in illegal proceeds generated by the Brothels’ prostitution business. These proceeds would be transferred among the defendants through several methods, including cash deliveries, payment of credit card balances, and wire transfers. An account associated with RYAN JUNGHUN KIM received tens of thousands of dollars from accounts in the names of several of the defendants. HOI HAM, the defendant, made cash pickups from the Brothels on multiple occasions, and even discussed these pickups in electronic chat messages with RYAN KIM. Moreover, between December 2012 and May 2014, approximately $326,381 was transferred from a single credit card in HAM’s name to the Advertising Website. Similarly, between December 2011 and September 2013, approximately $150,000 in cash was deposited into an account in the name of SUNG HWAN KIM and approximately $90,000 during that same period was remitted to the Advertising Website. Finally, between December 2011 and May 2014, approximately $268,000 was deposited into a bank account maintained in the name of YOUNG HO JOO, the defendant, and another individual. During this same period, this account remitted approximately $92,311 to the Advertising Website. To date, the investigation, which is ongoing, has identified more than $1.4 million worth of illegal transactions.
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Each of the defendants is charged with one count of conspiracy to commit money laundering, which carries of maximum sentence of 20 years in prison; and one count of conspiracy to violate the Travel Act, which carries a maximum sentence of five 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 defendants will be determined by the judge.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html
Mr. Bharara praised the outstanding efforts of DSS, HSI, the IRS, USPIS, the New York City Police Department, and the Seoul Metropolitan Police Agency. He added that the investigation is ongoing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Sidhardha Kamaraju, Lauren Schorr, and Michael Neff are in charge of the prosecution.
The charges 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.