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Thursday 10 December 2015
Federal Inmate Sentenced for Possession of ShankRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dwayne Parker, age 31, a federal prisoner formally housed at the Federal Correctional Institute, Schuylkill was sentenced yesterday by U.S. District Court Judge Malachy E. Mannion in Scranton, for possession of a prohibited object in prison.
Judge Mannion sentenced Parker to 27 months imprisonment for possessing a shank in prison. Judge Mannion ordered that the sentence be run consecutively to Parker’s current 15 year federal sentence which he received as a result of a conviction for being a felon in possession of a firearm in the Eastern District of Pennsylvania.
According to United States Attorney Peter Smith, Parker was charged in a Criminal Indictment on June 2, 2015, and entered a guilty plea to that Indictment today just prior to being sentenced by Judge Mannion upon joint motion of the parties.
The case was investigated by the Bureau of Prisons and the Federal Bureau of Investigations. Assistant U.S. Attorney Todd K. Hinkley prosecuted the case.
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Elmira Woman Sentenced on Theft ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sonja Matos, 28, of Elmira, NY, who was convicted of theft by credit union employee, was sentenced to time served and two years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the defendant worked for the Corning Credit Union as a Risk Management/Card Services employee. Part of her responsibilities included periodically updating the software of Automated Teller Machines (ATM’s) and loading monies into the ATM’s of the Corning Credit Union. From January 2015 through April 2015, Matos took money for herself on a weekly basis from two ATM’s as she was loading the money into the machines. The defendant stole approximately $40,0000. The deposits of the Corning Credit Union are insured by the National Credit Union Administration.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Eleven Defendants Named in Seventy-One Count Indictment Charging Conspiracy to Commit Theft of Public Money and Identity TheftRead the Press Release
OAKLAND – Nine California residents and two Texas residents were charged with conspiracy to commit theft of public money, theft of public money, wire fraud, and aggravated identity theft announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Andrew Toth.
The indictment, unsealed yesterday, charges the following eleven defendants with participating in the conspiracy:
- Hugh Robinson, of Richmond
- Gary Bostick, of Pittsburg
- Ana Bostick, of Pittsburg
- Ronald Blake, of Fort Worth, TX
- Kyadrian Dennis, of Fort Worth, TX
- William Odom, of Berkeley
- Jamia Lewis, of Fairfield
- Devonnie Davison, of San Pablo
- Brandon Robinson, of El Cerrito
- Janel McDonald, of Los Angeles
- Everardo Laurian, of Daly City
According to the indictment, from at least August 21, 2013, through April 27, 2015, the defendants conspired with one another to commit offenses against the United States, including theft of government money. The scheme involved obtaining the names of deceased individuals, filing false tax returns in the names of the individuals, obtaining false identifications, and illegally cashing U.S. Treasury checks.
According to the indictment, Hugh Robinson, Gary Bostick, and Ronald Blake, with the assistance of others, are alleged to have obtained names of deceased individuals for use in filing false tax returns. To obtain identities for use in the scheme, these defendants searched California death records and obtained the names and personal identifying information of deceased individuals. The defendants then used the identities obtained from the death records to electronically file false federal income tax returns and caused the returns to be filed in the name of the deceased with the IRS. The returns falsely represented that the individuals earned wages or other income and that the individuals listed on the tax returns were entitled to tax refunds. Hugh Robinson, Gary Bostick, Ronald Blake, and other individuals working with them also listed on the tax returns certain physical addresses to which the defendants had access, enabling the defendants to retrieve the refund checks.
Also described in the indictment is the process by which the defendants are alleged to have cashed the fraudulently obtained U.S. Treasury checks. According to the indictment, Janel McDonald provided false and fraudulent California identification documents to co-conspirators who used them to negotiate the U.S. Treasury checks. The false identifications contained the pictures of designated co-conspirators who would cash the check. In addition, Hugh Robinson, Brandon Robinson, and Devonnie Davison brought some of the checks to a Walmart store in Richmond, California, where Jamia Lewis and William Odom assisted in cashing the checks. According to the indictment, Lewis and Odom were Walmart employees who knew the checks belonged to others and the U.S. Treasury. Further, Hugh Robinson and his co-conspirators obtained false identification documents that matched other names on the U.S. Treasury checks and negotiated those illegally-obtained checks at various other Walmart stores. According to the criminal complaint filed in the case, a search of the location where Hugh Robinson resided yielded $237,394 worth of uncashed U.S. Treasury checks.
The indictment charges each defendant with conspiracy to commit theft of public money. In addition, the defendants have been charged with the following federal offenses:
Hugh Robinson
7 counts of Theft of Public Money, 18 U.S.C. § 641
7 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Gary Bostick
4 counts of Wire Fraud, 18 U.S.C. § 1343
4 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Ana Bostick
2 counts of Theft of Public Money, 18 U.S.C. § 641
2 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Ronald Blake
3 counts of Theft of Public Money, 18 U.S.C. § 641
3 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Kyadrian Dennis
4 counts of Theft of Public Money, 18 U.S.C. § 641
4 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
William Odom
3 counts of Theft of Public Money, 18 U.S.C. § 641
3 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Jamia Lewis
3 counts of Theft of Public Money, 18 U.S.C. § 641
3 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Devonnie Davison
2 counts of Theft of Public Money, 18 U.S.C. § 641
2 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Brandon Robinson
3 counts of Theft of Public Money, 18 U.S.C. § 641
3 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Janel McDonald
2 counts of Theft of Public Money, 18 U.S.C. § 641
2 counts Aggravated Identity Theft, 18 U.S.C. § 1028A
Everardo Laurian
2 counts of Theft of Public Money, 18 U.S.C. § 641
2 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Hugh Robinson has been in custody since his arrest in April 2015. Jamia Lewis, William Odom, Ronald Blake, Brandon Robinson, and Everardo Laurian are scheduled to appear on December 15, 2015, before United States District Judge Jeffrey S. White. Janel McDonald is scheduled to appear on December 16, 2015, before United States Magistrate Judge Donna M. Ryu. Hugh Robinson, Gary Bostick, Ana Bostick, and Devonnie Davison are scheduled to appear on January 12, 2016, before Judge White.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum sentence for conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371, is 5 years in prison and a fine of $250,000. The maximum penalty for theft of public money, in violation of 18 U.S.C § 641, is 10 years in prison and a fine of $250,000. The maximum penalty for wire fraud, in violation of 18 U.S.C § 1343, is 20 years in prison and a fine of $250,000. The maximum penalty for each count of identity fraud, in violation of 18 U.S.C § 1028A, is two years in prison, consecutive to the underlying felony and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera are prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Eight Members of Detroit-Based Robbery Crew Sentenced for Roles in $635,000 Jewelry Heist at Lenox Square MallRead the Press Release
ATLANTA – Eight members of a traveling robbery crew—based out of Detroit, Michigan, and linked to jewelry store robberies in several states—have been sentenced to federal prison for their roles in the June 2013 smash-and-grab robbery of the Mayors Jewelry Store in Lenox Square Mall, in Atlanta, Georgia.
“These defendants traveled the country searching for the most expensive jewelry stores to rob,” said U. S. Attorney John Horn. “They used sledgehammers during business hours to terrify store employees, smash open display cases, and steal jewelry to sell on the black market. The arrest and conviction of this crew has prevented an untold number of additional smash-and-grab robberies of jewelry stores on the eastern half of the United States.”
“The FBI is pleased to now have this violent and prolific robbery crew off of our streets. Their violent tactics during these robberies, to include the 2013 robbery at a Lenox Mall based jewelry store in Atlanta, illustrated a complete disregard for the safety of the public. We are appreciative of the hard work and dedication of the many investigators and prosecutors who stayed the course of this extensive and lengthy investigation,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court; the robbery crew consisted of eight individuals, all from Detroit, and each of whom has been convicted and sentenced to federal prison time: Damien Gayles, Kamauri Kennedy, Corey Burrows, Allen Adams, Lorenzo Terry, Anthony Hill, Jason Arnold, and Jasmine Dozier. The crew was led by Kenneth Thomas, now deceased. Several members of the crew are linked to similar jewelry store robberies in Michigan, Virginia, Florida, and elsewhere.
In June 2013, the robbery crew planned to travel from Detroit to Atlanta specifically to commit a “smash-and-grab” style robbery, using sledgehammers, of the Mayors Jewelry Store, in Atlanta, Georgia. Mayors, a high-end retail chain based in Florida, has locations in several states that offer a wide selection of Rolex watches. The robbers’ plan was to steal the watches and return to Detroit, where they could be sold to “fences,” or dishonest jewelry dealers via unreported cash transactions. The fences would then sell the stolen merchandise on the black market, including to buyers overseas.
Thomas, Gayles, Kennedy, and Dozier planned the robbery mission, identified the location to be robbed, conducted surveillance of the store prior to the robbery, and acquired the hammers, vehicles, and other materials needed to commit the crime. Terry, Hill, Burrows, Adams, and Arnold were recruited by the planners to actually commit the smash-and-grab robbery. Burrows and Adams were selected to wield the sledgehammers, due to their larger physical size. Terry, Hill, and Arnold were selected to grab the watches after Burrows and Adams bashed open the display cases.
On June 21, 2013, Burrows, Adams, Terry, Hill, and Arnold entered the Mayors Jewelry Store, in Lenox Square Mall, during business hours in order to rob it. Burrows and Adams concealed sledgehammers in their pants, and then used the sledgehammers to smash open the store’s glass display cases. Hill, Terry, Adams, and Arnold grabbed and stole approximately 19 Rolex watches from the smashed display cases, valued between $25,000 and $65,000 each, and fled the store with the stolen merchandise. The total retail value of the stolen property was approximately $637,600. Kennedy and Dozier served as getaway drivers afterwards. Gayles and Thomas took control of most of the stolen watches and paid their co-conspirators for their efforts. They then sold several of the watches to fences in Detroit.
Using a variety of investigative means, FBI eventually identified the perpetrators of the robbery, who were also suspects in other similar robberies that had occurred throughout the country. In July 2013, Thomas and several other members of the robbery crew were stopped just outside a high-end mall in Aventura, Florida, as they approached that mall in order to commit another smash-and-grab robbery of a jewelry store. Thomas was placed under arrest. FBI’s efforts subsequently led to several indictments and the conviction of these eight defendants.
The following five defendants pleaded guilty to interfering with commerce by robbery, and/or conspiring to interfere with commerce by robbery, and were sentenced by U.S. District Judge Thomas W. Thrash as follows:
- Corey Burrows, 27, was sentenced on September 3, 2015, to four years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Burrows was convicted of these charges on May 26, 2015.
- Jasmine Dozier, 26, was sentenced on May 6, 2015, to two years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Dozier was convicted of these charges on February 27, 2015.
- Damien Gayles, 25, was sentenced was sentenced on March 2, 2015, to seven years, eight months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Gayles was convicted of these charges on October 10, 2014.
- Allen Adams, 28, was sentenced on November 10, 2014, to four years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Adams was convicted of these charges on August 22, 2014.
- Kamauri Kennedy, 26, was sentenced on September 9, 2014, to five years, ten months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465. Kennedy was convicted of these charges on June 17, 2014.
The following three defendants pleaded guilty to interfering with commerce by robbery, and/or conspiring to interfere with commerce by robbery, and were sentenced by U.S. District Judges in the Eastern District of Michigan, as follows:
- Lorenzo Terry, 22, was sentenced on December 9, 2015, to four years in prison, by Judge David Lawson, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Terry was convicted of these charges on August 5, 2015.
- Anthony Hill, 26, was sentenced on August 25, 2015, to four years, nine months in prison, by Chief Judge Gerald E. Rosen, to be followed by two years of supervised release, and ordered to pay restitution in the amount of $276,465.Hill was convicted of these charges on May 19, 2015.
- Jason Arnold, 21, was sentenced on May 20, 2015, to three years in prison, by Chief Judge Gerald E. Rosen, to be followed by two years of supervised release, and ordered to pay restitution in the amount of $276,465.Arnold was convicted of these charges on November 14, 2014.
This case was investigated by Special Agent Paul Szabo and Task Force Officer William Kimball Murdock of the Federal Bureau of Investigation, with assistance from the Atlanta Police Department.
Assistant United States Attorneys John S. Ghose and Brent Alan Gray prosecuted 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.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man, charged with Assault by Striking, Beating, and Wounding, pled guilty to and was sentenced on December 8, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Arvin Red Bear, Sr., age 53, was sentenced to 12 months in custody, followed by 1 year of supervised release, and a special assessment of $25 to the Federal Crime Victims Fund. He was ordered to pay $78.02 in restitution.
The conviction stems from an incident that took place on June 29, 2014, when Red Bear, the victim, and another individual were all drinking together at Red Bear’s home in Thunder Butte, South Dakota. After a while, a verbal argument began between Red Bear and the victim. As the victim approached Red Bear’s residence, Red Bear came out from his house carrying a hatchet in one hand and a long hunting knife in the other. Upon seeing the weapons, the victim and the other individual turned around and began to walk away. As they were leaving, Red Bear rushed towards the victim, swinging the hatchet and striking him on the back of his right arm, just above the elbow. The victim turned around and began to wrestle with Red Bear, managing to pry the hatchet from Red Bear’s grasp and tossing it away. While they were wrestling, Red Bear also stabbed the victim in the face with the knife.
The victim left the scene and was transported to the Eagle Butte Indian Health Services emergency room. He ultimately received 8 sutures to his cheek, had two superficial wounds cleaned and bound, and was referred to Rapid City for the wound above his right elbow to check for possible nerve damage.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Agency. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Red Bear was remanded to the custody of the U.S. Marshals Service.
Drug Trafficker Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Edison Norberto Sanchez, 39, of Orlando, Florida, was sentenced this morning in federal court for his participation in a scheme to possess with intent to distribute methamphetamine. Sanchez pled guilty to the conspiracy count in September of 2014. Court documents reflect that Sanchez was arrested in Mobile during an investigation initiated by the Mobile County Sheriff’s Office. The investigation involved controlled buys of methamphetamine from Sanchez’s co-defendant Edgar Ivan Contreras, who was also known as “Scooby.” Searches of vehicles and residences resulted in the seizure of additional amount of methamphetamine and documents relevant to the drug trafficking scheme.
United States District Court Judge William H. Steele imposed a sentence of 57 months this morning at Sanchez’s sentencing hearing. That sentence was at the low end of the advisory guideline range applicable in Sanchez’s case. The judge also ordered that Sanchez would serve a five-year term of supervised release when he completes his prison sentence, during which he will be monitored for drug use. Sanchez was ordered to pay a mandatory $100 special assessment, but the judge did not impose a fine.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.District Man Pleads Guilty to Sexually Assaulting Two Women in Attack in Alley in Northwest WashingtonRead the Press Release
WASHINGTON - Hassain Smart, 20, of Washington, D.C., has pled guilty to charges stemming from sexual assaults he committed against two women in an alley in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Smart pled guilty on Dec. 9, 2015, in the Superior Court of the District of Columbia, to charges of first-degree sexual abuse while armed, first-degree sexual abuse with aggravating circumstances, robbery while armed, and kidnapping while armed. The plea, which is contingent upon the Court’s approval, calls for a prison term of 27 to 33 years. Upon release, Smart would be required to register as a sex offender for the remainder of his life. The Honorable Jennifer Anderson scheduled sentencing for March 4, 2016.
According to the government’s evidence, at about 1 a.m. on June 25, 2015, the two victims began to open the door to their home in the unit block of T Street NW when Smart, a stranger, approached from behind and brandished what appeared to be a black handgun. He led both women through a dark alley into a muddy area between a fence and a vacant house under construction. Smart raped both women in the alley while continuing to brandish the weapon.
After the sexual assaults, Smart refused to allow the victims to leave until they surrendered their cell phones and a debit card to him. When he finally left, the victims contacted law enforcement, and detectives from the Sexual Assault Unit of the Metropolitan Police Department (MPD) responded and immediately began an investigation.
An MPD patrol officer in the Seventh District spotted the defendant, who matched the description given by the victims. Smart was arrested after police found the victims’ cell phones and debit card and the weapon in his possession. Smart then confessed to kidnapping, robbing, and sexually assaulting both women while brandishing the weapon.
After reporting the assault to the police, the victims were transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE), which included collection of forensic evidence. Bode Technologies later conducted DNA testing and concluded that the major male profile found on intimate swabs from a victim’s SANE kit matched the DNA profile of the defendant.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit, the Fifth and Seventh Police Districts, and crime scene technicians. He also expressed appreciation to Bode Technologies. He also commended those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan and Paralegal Specialists Tierra Nanches and Jason Manuel. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Amy Zubrensky and Julianne Johnston, who are prosecuting the case.
Delaware Woman Pleads Guilty to $430,000+ Embezzlement from Law Firm and Tax FraudRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Penni Enama, age 50, of Lewes, Delaware, pled guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of tax evasion, in violation of 26 U.S.C. §7201. Enama, who will be sentenced on March 23, 2016, at 2 p.m. by the Honorable Gregory M. Sleet, United States District Judge for the District of Delaware, faces a maximum sentence of twenty years in prison, a fine of $250,000, and 3 years of supervised release following any term of imprisonment.
According to statements made at the plea hearing and documents filed in court, Enama was employed by a law firm in Delaware, for approximately two years when, in May 2007, she began embezzling funds from the firm’s escrow account. Enama was a real estate paralegal, and she used her access to a closing escrow account to divert at least $439,824.40 to her personal use. Enama fabricated additional real estate closing parties in the firm’s records, and she used the additional funds to pay her personal credit cards and/or deposit the funds into her personal bank accounts. Enama did not declare the embezzled funds on her federal income tax returns for the 2011-2013 tax years.
U.S. Attorney Oberly commented, “This is a particularly troublesome case where an experienced para-professional abused her position of trust to steal, at least, nearly $440,000.00 from a Delaware law firm. Whether it is a law firm, a physician’s office, or any office where people are entrusted with handling money, thieves like Ms. Enama can expect to be prosecuted and face incarceration.”
“To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share. The overarching principle of IRS' enforcement strategy is simply this: We protect the integrity of the tax system by ensuring everyone pays the right amount of tax,” said Akeia Conner, Special Agent In Charge IRS Criminal Investigation.
This case is being investigated by the Internal Revenue Service - Criminal Investigation, and it is being prosecuted by Assistant United States Attorney Lauren Paxton.
Defendant Pleads Guilty to Interstate Threats to Injure Saint Regis Mohawk Tribal Police OfficersRead the Press Release
PLATTSBURGH, NEW YORK – Roy Redeye, age 39, of Cortland and Akwesasne, New York, pled guilty yesterday to two counts of interstate threats to injure another person announced United States Attorney Richard S. Hartunian, James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations, and Matthew Rourke, Saint Regis Mohawk Police Chief. Redeye admitted during the change of plea hearing that on February 6, 2015, he posted threats to injure and kill three Saint Regis Mohawk Tribal Police Officers on Facebook.
On both counts, Redeye faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release up to 3 years. Sentencing is set for April 6, 2016 at 10:30 AM before Senior U.S. District Judge Lawrence E. Kahn.
The case was investigated by Homeland Security Investigations in both Massena and Syracuse, with assistance from the Cortland Police Department, the Cortland County Sheriff’s Office, and the Saint Regis Mohawk Tribal Police Department. Assistant United States Attorney Elizabeth Horsman prosecuted the case.
The case was prosecuted under the U.S. Attorney’s Office for the Northern District of New York’s Indian Country Public Safety Initiative, which was established as a result of the Tribal Law and Order Act of 2010. That Act launched department-wide initiatives to enhance public safety in Indian Country.
Charges Filed Against Eight People in Alleged Drug ConspiracyRead the Press Release
PHILADELPHIA - An indictment, unsealed today, charges eight people with conspiring to distribute heroin in the Kensington section of Philadelphia, announced United States Attorney Zane David Memeger. Charged are: Jorge Balbuena, a/k/a “Hansel,” 29, Yan Mota Soto, 25, Luis Garcia, a/k/a “Twin,” a/k/a “Mellos,” a/k/a “Domi,” 35, Jose Garcia, a/k/a “Twin,” a/k/a “Mellos,” 35, Ysidro Garcia, a/k/a “Pisa Pie,” 67, Elvin DeJesus, 26, Pedro Angel Montes-Perez, 24, and Gary Cuevas-Reyes, 27, all living in Philadelphia, PA. In addition to the conspiracy count, the defendants are charged in multiple counts of distribution of heroin, and distribution of heroin within 1,000 feet of a school or playground. Jorge Balbuena, Jose Garcia, Evlin Dejesus, Gary Cuevas-Reyes, Pedro Montes-Perez were arrested this morning. Montes-Perez is a U.S. citizen. The remaining defendants are citizens of the Dominican Republic residing in Philadelphia.
According to the indictment, the conspiracy existed from March 2014 to October 2015 and was led by Jorge Balbuena and supplied wholesale amounts of heroin, cocaine, cocaine base (“crack”), and other controlled substances to other wholesale drug distributors, and to street corner drug operations.
If convicted, each defendant faces lengthy prison terms.
The case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney David. E. Troyer and Marianne Shelvey of the United States Department of Justice’s Organized Crime and Gang Section.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Buffalo Native Convicted for His Role in Overseas Investment ScamRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Arnold Wrobel, 63, a native of Buffalo, NY, who was most recently residing in Barcelona, Spain, pleaded guilty to conspiring to engage in a wire fraud conspiracy and to defraud the Internal Revenue Service, before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that Wrobel oversaw a “boiler room” scam in Barcelona, Spain. The scam conned investors in the United Kingdom and Canada into buying nearly worthless shares of restricted stock at severely inflated prices by telling buyers that they were buying more valuable regular shares of stock. Approximately 250 investors lost more than $2,900,000 to Wrobel and his co-conspirators. A portion of the criminal proceeds were funneled through a bank account in Western New York before being sent to numerous overseas accounts controlled by Wrobel others. Alert investigators monitoring suspicious monetary transactions uncovered the criminal activity. Wrobel, who grew up in Buffalo, also conspired to defraud the Internal Revenue Service in order to avoid paying taxes on the ill-gotten gains.
The defendant is the second of 12 defendants to be convicted in the case.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James S. Spero, Special Agent in Charge of the Buffalo Office, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Michael F. Rivera, Supervisory Special Agent.
Sentencing will be scheduled at a later date.
Bloomfield Man Sentenced to Federal Prison for Statutory Rape ConvictionRead the Press Release
ALBUQUERQUE – Orlando Harvey, 25, an enrolled member of the Navajo Nation who resides in Bloomfield, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 18 months in prison for sexually abusing a minor. Harvey will be on supervised release for five years following his prison sentence. He also will be required to register as a sex offender.
Harvey was arrested on Dec. 22, 2014, on an indictment charging him with four counts of sexual abuse of a minor. According to the indictment, Harvey engaged in a sexual act with the victim, who was under 16 years of age, on four occasions between Aug. 2014 and Oct. 2014, on the Navajo Indian Reservation in San Juan County, N.M.
On Feb. 20, 2015, Harvey entered a guilty plea to Count 1 of the indictment, and admitted engaging in a sexual act with the 15-year-old victim in Aug. 2014. Harvey admitted knowing that the victim was only 15 years old when he picked her up at school and drove her to his residence where they engaged in a sexual act. He also acknowledged manipulating the victim into engaging in a sexual act with him.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI. The case was prosecuted by Assistant U.S. Attorneys Raquel Ruiz Velez and Elaine Ramirez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Billings Man Convicted of Felon in Possession of FirearmsRead the Press Release
BILLINGS – Following a two day federal trial, a Montana jury found Ryan Anthony Cislo, most recently of Billings, guilty of being a felon in possession of firearms on Thursday. Judge Susan Watters presided over the trial. Sentencing has been set for March 23, 2016.
Cislo was indicted by a grand jury in December of 2014 on two counts, which included the felon in possession charge as well as a possession of stolen firearms charge. At trial, the government introduced evidence that in June of 2014, Cislo was being supervised for a 2009 felony conviction from Flathead County. He had been released from custody in May of 2014, and was periodically living in the home of his girlfriend’s mother between May 7 and June 9. The homeowner called Cislo’s probation officer on June 9 to report that Cislo had shown her three handguns and requested that the officer come to her home to search Cislo’s belongings and remove the firearms.
Four officers with Montana Probation and Parole responded and searched the room that Cislo had been using. Cislo was not present during the search. The officers found two handguns stuffed between the mattress and the box spring of the bed. One of the guns was loaded and had a live round in the chamber. The other contained a loaded magazine. The officers also found a Sentry gun safe and a wallet containing Cislo’s driver’s license, Social Security card, and various credit cards. Through a seam in the safe, the officers could see that it contained at least ammunition.
Because they had only found two of the three reported firearms, the officers called in an officer with the Bureau of Alcohol, Tobacco, Firearms & Explosives to assist with the search. The ATF officer pried open the gun safe and found a .22 caliber derringer inside along with multiple rounds of ammunition of varying caliber. All together, the firearms included a Taurus .45 caliber semi-automatic pistol, a Hi-Point 9mm caliber semi-automatic pistol, and a Cobra .22 caliber derringer.
In a subsequent interview with law enforcement, Cislo denied ever living at the house in question or knowing anything about the firearms found there. However, he had listed the address where the firearms were located as his residence on a monthly probation report from May 2014 and stated later in a jail call admitted at trial that he had stayed at the residence for at least ten nights.
The case was prosecuted by Assistant U.S. Attorneys John Sullivan and Lori Suek. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and Montana Probation and Parole.
Baltimore Man Pleads Guilty to Copyright Infringement for Illegally Reproducing and Distributing Copyrighted MoviesRead the Press Release
Greenbelt, Maryland – Dwayne Scott, age 55, of Baltimore, Maryland, pleaded guilty today to copyright infringement in connection with his reproduction and distribution of copyrighted works, including movies.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, Dwayne Scott was a corporate officer and registered agent of Hard Times Discount Clothing and Accessories in Baltimore. On four occasions between September 11, 2012 and August 6, 2015, law enforcement executed search warrants at Hard Times. On each occasion, law enforcement seized large numbers of CDs and DVDs of copyrighted works, which Scott had reproduced and distributed without the permission of the copyright holders. Scott admitted selling CDs and DVDs of copyrighted works for profit.
Specifically, on September 11, 2012, members of the Baltimore Police Department executed a search warrant at Hard Times in connection with a stolen property investigation. Subsequently, on January 29, 2014 and February 3, 2015, an undercover officer purchased DVDs from Hard Times. Each of the DVDs contained copyrighted movies that Scott had reproduced and distributed without permission. On April 16, 2014, February 24, 2015 and August 6, 2015, HSI Special Agents executed federal search warrants at Hard Times. In the back room of the business law enforcement found hundreds of CDs and DVDs containing copyrighted works which Scott had illegally reproduced and distributed. In addition, law enforcement located laptop computers actively downloading copyrighted movies from internet file sharing programs.
Scott faces a maximum sentence of five years in prison for copyright infringement. As part of his plea agreement, Scott will also be required to pay restitution of $15,001 and to forfeit the computers, hard drives, cell phones, CDs and DVDs, and other items seized during the search warrants. U.S. District Judge Paul W. Grimm has scheduled sentencing for April 11, 2016, at 9:30 a.m.
The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
HSI manages the IPR Center, one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the HSI-led IPR Center, visit www.IPRCenter.gov.
United States Attorney Rod J. Rosenstein thanked HSI Baltimore and the Baltimore Police Department for their work in the investigation and thanked the Motion Picture Association of America for its assistance. Mr. Rosenstein praised Assistant U.S. Attorney Nicolas A. Mitchell, who is handling the case.
Attorney General Loretta E. Lynch Joint Statement with Foreign Counterparts Following G6 Ministerial MeetingRead the Press Release
Attorney General Loretta E. Lynch released a joint statement with U.K. Home Secretary Theresa May, the Interior Ministers of the U.K., France, Germany, Italy and Spain, U.S. Secretary for Homeland Security Jeh Johnson and European Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos following a G6 meeting in London on Dec. 9 and 10, 2015:
“Condemning recent terrorist attacks worldwide, including in Sousse, Paris, Bamako, Beirut and San Bernardino, we are united in our determination to combat terrorism through a strong yet proportionate national and international response.
“We reaffirm our commitment to tackling the threat posed by Daesh/ISIL and to countering violent extremism and radicalization with the values that we all share: respect, tolerance and democracy. At the heart of this work is a partnership with wider society: at the same time as we work with them to root out radicalization to violence, we reject any attempts to create division and marginalization amongst those we endeavor to protect.
“We are committed to stepping up cooperation in tackling this threat to our democracies. In particular, consistent with national law, we agree to:
- work with civil society and religious and faith groups to deliver positive counter-narratives which promote the values underpinning peace, freedom and democracy;
- counter violent extremism, including by disrupting those who support terrorist activity, prosecuting all those who break the law and supporting those vulnerable to radicalisation;
- maximise cooperation and information-sharing between our respective law enforcement and other agencies including through European, US and international mechanisms;
- encourage communications service providers to consider taking further steps to remove from the internet content which encourages, promotes or inspires the violent extremism associated with Daesh/ISIL and other such terrorist groups;
- enhance further the security of air travel by ensuring that airports worldwide meet the highest international standards both for passengers and cargo;
- continue and enhance cooperation within Europe and with the US on important initiatives, including passenger name records - welcoming political agreement on an EU Passenger Name Records Directive and the EU/US “Umbrella” agreement on data protection and privacy - as well as terrorist finance and further agreements to ensure effective data sharing in the interests of public security and protection; and
- enhance the security of the external border of the EU.
“We undertake to work together resolutely at an EU and international level to deliver the outcomes agreed at our meeting in London.”
Army Sergeant Sentenced to Prison for Conspiracy in Afghanistan Bribery SchemeRead the Press Release
An Army sergeant was sentenced to 24 months in prison today for his role in a conspiracy to commit bribery in connection with supply contracts while serving in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations (OSI), made the announcement.
Ramiro Pena Jr., 43, of Fort Campbell, Kentucky, previously pleaded guilty to a one-count information charging him with conspiracy to commit bribery. In imposing sentence today, Senior U.S. District Judge Thomas B. Russell of the Western District of Kentucky also ordered Pena to forfeit $100,000, a Harley Davidson motorcycle and a Rolex watch.
From January 2008 through September 2009, Pena worked as a U.S. Army sergeant first class at the Humanitarian Assistance (HA) Yard at Bagram Airfield in Afghanistan. In connection with his guilty plea, Pena admitted that he and his supervisor, Army Master Sergeant Jimmy W. Dennis, were responsible for contracting with local vendors to purchase supplies to support humanitarian relief in Afghanistan, and they awarded approximately 217 such contracts totaling roughly $30,760,255. In return, Pena and Dennis received money and jewelry from some of the vendors. Specifically, Pena admitted that he received from the vendors, through Dennis, a Rolex watch and $100,000 in total bribe payments.
Pena admitted that he sent approximately $22,000 of the cash to his family in Kentucky, spread among numerous greeting cards to avoid drawing attention to the thickness of any particular envelope. Pena also used the bribe money to pay his family’s personal expenses both in Afghanistan and in the United States to purchase a Harley Davidson motorcycle.
Dennis also previously pleaded guilty in the Western District of Tennessee to conspiracy to launder bribe payments and was sentenced to 41 months in prison and ordered to forfeit $115,000.
This case was investigated by the SIGAR, FBI’s Washington Field Office, CID, DCIS and OSI. The case was prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nute A. Bonner and Amy Sullivan of the Western District of Kentucky.
Army Sergeant Sentenced to Prison for Conspiracy in Afghanistan Bribery SchemeRead the Press Release
WASHINGTON – An Army sergeant was sentenced to 24 months in prison today for his role in a conspiracy to commit bribery in connection with supply contracts while serving in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations (OSI), made the announcement.
Ramiro Pena Jr., 43, of Fort Campbell, Kentucky, previously pleaded guilty to a one-count information charging him with conspiracy to commit bribery. In imposing sentence today, Senior U.S. District Judge Thomas B. Russell of the Western District of Kentucky also ordered Pena to forfeit $100,000, a Harley Davidson motorcycle and a Rolex watch.
From January 2008 through September 2009, Pena worked as a U.S. Army sergeant first class at the Humanitarian Assistance (HA) Yard at Bagram Airfield in Afghanistan. In connection with his guilty plea, Pena admitted that he and his supervisor, Army Master Sergeant Jimmy W. Dennis, were responsible for contracting with local vendors to purchase supplies to support humanitarian relief in Afghanistan, and they awarded approximately 217 such contracts totaling roughly $30,760,255. In return, Pena and Dennis received money and jewelry from some of the vendors. Specifically, Pena admitted that he received from the vendors, through Dennis, a Rolex watch and $100,000 in total bribe payments.
Pena admitted that he sent approximately $22,000 of the cash to his family in Kentucky, spread among numerous greeting cards to avoid drawing attention to the thickness of any particular envelope. Pena also used the bribe money to pay his family’s personal expenses both in Afghanistan and in the United States to purchase a Harley Davidson motorcycle.
Dennis also previously pleaded guilty in the Western District of Tennessee to conspiracy to launder bribe payments and was sentenced to 41 months in prison and ordered to forfeit $115,000.
This case was investigated by the SIGAR, FBI, CID, DCIS and OSI. The case was prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nute A. Bonner and Amy Sullivan of the Western District of Kentucky.
A Department of Veterans Affairs Nurse Convicted of Falsifying Medical Records and Computer FraudRead the Press Release
A former Department of Veterans Affairs employee pled guilty today to destroying, altering and falsifying records and committing computer fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VA-OIG), Southeast Field Office, made the announcement.
Enrique Martinez, 37, of Miami, pled guilty before United States Magistrate Judge Jonathan Goodman to destruction, alteration, and falsification of records, in violation of Title 18, United States Code, Section 1519, and computer fraud, in violation of Title 18, United States Code, Section 1030. Martinez faces a statutory maximum penalty of up to 20 years in prison.
According to court records and information presented in court, Martinez, a former nurse at the Veterans’ Affairs (VA) Medical Center in Miami, obstructed a federal investigation and caused damage to the computer system of the U. S. Department of Veterans’ Affairs. Martinez falsified the medical records of a 76-year old veteran who was being treated at the medical center and was directly under Martinez’s responsibility. The veteran-patient died while hospitalized at the medical center. Martinez made these changes and alterations in an attempt to avoid responsibility for the poor quality of care he had provided the veteran-patient.
Mr. Ferrer commended the investigative efforts of the VA-OIG’s Office of Investigations and the VA-OIG’s Office of Healthcare Inspections. The case is being prosecuted by Assistant U.S. Attorneys Benjamin Widlanski and Jonathan Kobrinski.
Martinez is set for sentencing before United States District Judge Jose E. Martinez on February 19, 2016 at 2:00 p.m..
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
17 Charged in Cocaine Trafficking RingRead the Press Release
PITTSBURGH – Seventeen people have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The seven-count indictment named:
- William J. Chaffin Jr., 48, of Adah, Pa.;
- Semori Wilson, 45, formerly of Uniontown, Pa.;
- Domin Guerrero-Guerrero, 32, of Lebanon, Pa.;
- Dexter Allen, 27, of Uniontown, Pa.;
- George Daube, 59, of Donora, Pa.;
- Chalfonte Demery, 34, of McKeesport, Pa.;
- Damien Gibson, 41, of Duquesne, Pa.;
- Peter Hawkins, 44, of McKeesport, Pa.;
- Richard Lassic, 41, of Washington, Pa.;
- Marquis Bailey, 24, of Uniontown, Pa.;
- Tomarrio Blackburn, 33, McClellandtown, Pa.;
- Anitra Dues, 38, of Adah, Pa.;
- Brandon Harrison, 29, of McClellandtown, Pa.;
- Mark Johnson, 28, of Uniontown, Pa.;
- Keith Thomas, 30, of Uniontown, Pa.;
- Herbert Ballard, 50, of Pittsburgh, Pa.; and
- Nygel Saunders, 26, of Uniontown, Pa..
According to the indictment presented to the court, the defendants named above (except for Herbert Ballard and Nygel Saunders) engaged in a conspiracy to possess with intent to distribute and distribute cocaine from June 2015 to November 2015. Individually, William J. Chaffin Jr., Richard Lassic, Herbert Ballard, and Keith Thomas are charged with possession with intent to distribute and distribution of a quantity of cocaine, while Semori Wilson and Nygel Saunders are charged with possession with intent to distribute and distribution of 500 grams or more of cocaine. William J. Chaffin Jr. is also charged with possessing a firearm after a prior felony conviction.
The law provides for a maximum total sentences ranging of not less than 5 years in prison and up to life in prison, and fines ranging from $250,000 to up to $8,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, the Allegheny County Sheriff’s Department, and the Allegheny County Police Department conducted the investigation leading to the indictment in this case. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
16 Named in Racketeering Indictment Alleging Money Laundering Schemes Orchestrated by Former President of Orange County BankRead the Press Release
LOS ANGELES – Federal authorities today arrested 11 defendants named in a sweeping racketeering indictment that alleges a series of money laundering schemes that revolved around the former head Westminster-based Saigon National Bank. Four other defendants who are named in two separate money laundering indictments were also arrested today.
The majority of the defendants arrested today in relation to Operation “Phantom Bank” are named in a 109-page racketeering indictment that was returned by a federal grand jury on December 1 and unsealed late this afternoon. Two other indictments returned by the grand jury over the past year were also unsealed today. The three indictments charge a total of 20 defendants, three of whom are named in two indictments.
In the 16-defendant racketeering indictment, six of the defendants are charged with violating the federal Racketeer-Influenced and Corrupt Organizations Act (RICO) by playing key roles in a series of schemes to launder drug proceeds. At the center of the schemes is the lead defendant in the indictment – Tu Chau “Bill” Lu, 71, of Fullerton, who was president and chief executive officer of Saigon National Bank from 2009 through January 2015.
The RICO count alleges that Lu and the other five defendants were members of a criminal organization that was involved in narcotics trafficking and international money laundering in countries that included the United States, China, Cambodia, Liechtenstein, Mexico and Switzerland. The indictment alleges that Lu used “his insider knowledge, position as an official at Saigon National Bank, and network of connections to promote and facilitate money laundering transactions involving members and associates of the enterprise.” Several members of the organization established or engaged in separate money laundering schemes, according to the indictment, but “all working with, through, or at the instigation of defendant Lu.”
In one scheme, an undercover informant delivered cash represented to be drug proceeds to defendants, who arranged for the cash to be converted into cashier’s checks made out to a company the informant allegedly owned. Other conspiracies discussed in the RICO count also involved the delivery of cash from the informant, and that money was allegedly converted into cashier’s checks.
As part of the racketeering enterprise, Lu and others named in the RICO count allegedly floated a plan in which the informant and his boss (who was an actually an undercover law enforcement officer) would purchase a controlling interest in Saigon National Bank so they could have a financial institution which could easily facilitate money laundering operations.
In another aspect of the RICO conspiracy, Lu and others allegedly proposed setting up a foundation in Liechtenstein that would be used to move money around the globe. The informant and another associate who was also an undercover law enforcement officer told those proposing the creation of the foundation that they would be laundering money that came from drug sales in Europe and that the narcotics had been bartered for weapons in Nigeria.
In yet another aspect of the RICO conspiracy, Lu allegedly played a critical role in introducing to the informant and other RICO defendants operatives from the Sinaloa drug cartel who wanted to launder millions of dollars every month. According to the indictment, Lu also had conversations with the Sinaloa cartel operatives about purchasing Saigon National Bank, and one of the operatives said the cartel had already invested $1 million in the bank.
In addition to Lu, the five people charged in the RICO count are:
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Tsung Wen “Peter” Hung, 61, of Monterey Park;
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Edward Kim, 56, of Beverly Hills;
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John Edmundson, 55, a British citizen who resides in Hong Kong, who is still being sought by authorities;
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Pablo Hernandez, 75, of Tijuana, Mexico, who is still being sought by authorities; and
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Emilio Herrera, 53, a Mexican citizen who resides in Spring Valley, California, who is still being sought by authorities.
The RICO count is one of 28 counts in the indictment. The various money laundering schemes detailed in the RICO count are the subject of other conspiracy and substantive money laundering charges in tampering and structuring transactions to avoid federal reporting requirements. Additionally, Kim is charged with evidence tampering for allegedly encouraging one of the undercover agents to destroy evidence.
The indictment alleges that members of the racketeering conspiracy discussed laundering hundreds of millions of dollars. The indictment details actual money laundering transactions involving a total of $3.75 million.
“Our fight against international narcotics trafficking focuses on both drug interdiction and stopping the flow of money generated by illegal narcotics sales,” said United States Attorney Eileen M. Decker. “The indictments unsealed today demonstrate that we are facing sophisticated operatives who will use novel methods to launder drug proceeds. These cases also demonstrate that we are committed to using all investigative tactics to uncover these illegal operations and to prosecute those willing to help drug traffickers.”
The other defendants named in the indictment are:
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Mina Chau, 32, of La Mesa, California;
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Ben Ho, 41, of Santa Ana;
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Tom Huynh, also known as “The Fat Guy,” 57, of Westminster;
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Renaldo Negele, 51, of Liechtenstein, who is still being sought by authorities;
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Jack Nguyen, 38, of Manhattan Beach;
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Luis Krueger, 58, of Malibu;
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Li Jessica Wei (who is also known under various permutations of her name, including Wei Jessica Li), 58, of Arcadia;
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Du Truong “Andrew” Nguyen, 34, of Westminster, who is still being sought by authorities;
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Richard Cheung, also known as Richard Cheang, 58, of El Monte; and
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Lien Tran, 41, of Santa Ana.
“Investigations of financial institutions and individuals who willingly violate U.S. laws and regulations are vitally important to the integrity of our banking system,” said Erick Martinez, Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “Those affiliated with financial institutions who abuse their positions to launder the proceeds of drug trafficking, illegal weapon sales and bribery will be held accountable.”
The second indictment unsealed today charges Hung, Wei and two other defendants – Jian Sheng “Raymond” Tan, 48, of Temple City; and Derrick Cheung, also known as Chang Zhang Ying and Zhang Ying Chang, 39, of Rowland Heights – with accepting money from an undercover operative and, in exchange for a fee, converting the money to cashier’s checks and money orders. The three-count indictment alleges that the defendants accepted money they believed to be the proceeds of bank fraud and narcotics trafficking.
The third indictment stemming from this investigation and unsealed today charges Tan; Ruimin Zhao, 45, also of Temple City; and Vivian Tat, 51, of Hacienda Heights, with laundering money they thought came from narcotics trafficking. The money given to the defendants in this case was delivered by an undercover operative and was converted into cashier’s checks.
“The taxpayers put their faith in TARP recipient Saigon National Bank by funding the bank after the financial crisis, ”said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). “As part of an expansive criminal enterprise, the former president and CEO of Saigon Bank, Tu Chau ‘Bill’ Lu and his co-conspirators have now been indicted for financial crimes relating to drug trafficking, money laundering and the use of the bank and Lu’s financial connections to facilitate the crimes. We commend U.S. Attorney Eileen M. Decker, the Department of Justice’s Criminal Division and our law enforcement partners for their work investigating this TARP case.”
During arraignments late today in United States District Court, 13 of the defendants entered not guilty pleas and were ordered to stand trial in February. The 13 who were arraigned today were all released on bond. Defendants Cheung and Hung are expected to be arraigned on Friday afternoon.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The RICO charge, the money laundering counts and the evidence tampering charge each a statutory maximum penalty of 20 years in federal prison. The charge of structuring financial transactions to avoid federal reporting requirements carries a maximum sentence of five years.
The investigation in Operation Phantom Bank was conducted by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Kim Meyer and Trial Attorney Andrew Creighton of the DOJ Criminal Division, Organized Crime and Gang Section.
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12 Alleged Fairview Gang Members Indicted for Drugs, Weapons, and Money Laundering OffensesRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that a 25-count indictment was unsealed alleging 12 defendants are part of a local Anchorage gang that engaged in drug trafficking, firearms possession, and money laundering crimes. The indictment further alleges that the gang members were affiliated with the Campanella Piru Park Bloods in Compton, California, and that they used firearms to protect the gang, as well as its Fairview “turf.” It is the first indictment in Alaska that alleges the presence of a nationally recognized street gang.
The indictment alleges that members of the “Fairview MOB” would obtain controlled substances in the Los Angeles area and distribute them in Alaska. The drugs being sold included heroin, cocaine and crack. The indictment further alleges several members of the “Fairview MOB” are affiliated with “All Da Time Ent.,” “Zaya’s First Class Entertainment,” and/or “YNE,” entities that purport to produce, perform and promote rap artists and music. Videos and photographs on social media websites show various members taking part in the conspiracy’s activities, such as gun violence and drug trafficking. It is alleged that the conspiracy’s illegal activities attempt to give credibility to the members rap music endeavors.
Indicted were the following individuals:
Isaiah Holloway a/k/a “Z,” 26, from Anchorage, Alaska; Lamont Moore, a/k/a “Moose,” 36, and Dearon Walton a/k/a “Mitch,” 25, both originally from Los Angeles; Ishmael Holloway a/k/a “Ish,” 23; Dorian Topps a/k/a “Fairview Money,” 22; Michael Reynold a/k/a “Boogie,” 23; Felton Reynold Jr. a/k/a “Fairview Jun,” 27; Christopher Meeks a/k/a “Thugga,” 22; Malia Green, 21; Delano Williams a/k/a “D,” 25; and Karl Maddox, Jr. a/k/a “P,” 25, all from Anchorage, Alaska.
According to the indictment, the conspiracy’s activities date back to at least 2012, when several conspirators were stopped by police and found to be in possession of firearms. The indictment alleges that various gang members were involved in 18 separate drug sales as well as numerous instances of illegal firearms possession and use. In one incident, alleged to have occurred on May 18, 2015, the indictment states that Isaiah Holloway and Lamont Moore possessed a firearm, which Moore used to shoot a rival gang member because the victim was in “Bloods” territory in the Fairview neighborhood of Anchorage. The indictment alleges that this conduct is consistent with the methods of the gang members “to promote the reputation of the ‘Fairview MOB,’ as well as to protect and defend its members and ‘turf’ from other gangs and threats. The members of the conspiracy engaged in drug trafficking, money laundering, and firearms possession and use, among other crimes. The purpose of these crimes was to promote the continued existence of the ‘Fairview MOB’ by supporting its members financially, which the members called ‘get[ting] money.’”
Several of the members of the gang have been charged in Alaska State court with crimes including murders, assaults, and firearms possession and use. State and federal authorities have been coordinating their investigations of the defendants since January, when there were several shootings and murders in Anchorage. The Anchorage Police Department devoted extra resources to investigate the uptick in violence, which was believed to have been drug-related. Later, the FBI’s Safe Streets Task Force continued the investigation. The FBI Anchorage Safe Streets Task Force is made up [of] FBI Special Agents, Anchorage Police Department Officers, U.S. Coast Guard Investigative Services Agents, Internal Revenue Service investigators, U.S. Postal Service Inspectors and the Bureau of Alcohol, Tobacco, Firearms and Explosives special agents.
First Assistant U.S. Attorney Kevin R. Feldis praised the investigation leading to these arrests, and stated, “Our community must not fall victim to gang violence. In this case, federal, state and local law enforcement worked together to investigate, disrupt and arrest those alleged to be responsible for an ongoing series of dangerous crimes. The federal indictment sends a strong message that those who traffic and sell drugs, illegally possess guns, and engage in violent criminal acts in our neighborhoods will be held accountable.” Mr. Feldis also thanked the Anchorage District Attorney’s Office for its cooperation, as well as the Municipality of Anchorage. The Municipality has partnered with the U.S. Attorney’s Office since 2007 to address gang crimes by supplying prosecutorial resources to the U.S. Attorney’s Office, and an Anchorage municipal prosecutor assisted in the investigation and the indictment of the Fairview MOB.
On Wednesday morning, members of the FBI Safe Streets Task Force, assisted by the DEA, ATF, IRS, APD, AST, and U.S. Marshals Service, executed a number of arrest warrants and served search warrants at six different locations. Agents seized large amounts of cash, guns, drugs, and evidence of gang membership during the search warrants.
Ten of the twelve defendants are currently in custody and are awaiting court appearances before a United States Magistrate Judge. Delano Williams, a/k/a “D,” of Anchorage, and Dearon Walton, a/k/a “Mitch,” of Los Angeles, are not yet in custody. Anyone having information about their whereabouts can call FBI Anchorage Division at 907-276-4441 or Crime Stoppers at 561-STOP to provide information.
“We were able to get a lot of dangerous people off the street today,” said FBI Special Agent in Charge, Deirdre Fike. “And that’s a testament to the dedication of our Safe Streets Task Force members.”
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Wednesday 9 December 2015
Union County, New Jersey, Man Sentenced to 12 Years in Prison for Recruiting A Girl to Work as A ProstituteRead the Press Release
NEWARK, N.J. – A Plainfield, New Jersey, man was sentenced today to 144 months in prison for arranging sexual encounters involving a 15-year-old girl in return for payment, U.S. Attorney Paul J. Fishman announced.
Ronald Garris Jr., 31, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of sex trafficking of a minor. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Garris admitted that on June 14, 2013, he met a 15-year-old girl at a Best Western Hotel in South Plainfield, New Jersey, and recruited her to work as a prostitute. On June 18, 2013, Garris posted an advertisement on backpage.com that contained explicit photographs of the girl, including her telephone number and the town in which she was located. Garris admitted arranging “dates” in which the girl was expected to perform sexual acts in exchange for payment. Garris also admitted that on June 21, 2013, the girl went to the Howard Johnson Express Inn in New Brunswick, New Jersey, for sexual encounters that he arranged.
In addition to the prison term, Judge Linares sentenced Garris to five years of supervised release. Garris must register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the New Brunswick Police Department and the Middlesex County Prosecutor’s Office with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Meredith Williams and Danielle Corcione of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defender Linda Foster Esq., Newark
Undocumented Alien with Guns Heads to Federal PrisonRead the Press Release
LAREDO, Texas – A Mexican national living illegally in Laredo has been ordered to federal prison following his conviction of having a firearm in violation of federal law, announced U.S. Attorney Kenneth Magidson. Jose Angel Villarreal-Sanchez, 43, pleaded guilty Aug. 11, 2015.
Today, U.S. District Judge Marina Garcia Marmolejo, who accepted the guilty plea, ordered Villarreal-Sanchez to serve a 24-month sentence. At the hearing, evidence was presented that the defendant had 87.4 grams of cocaine on his property when arrested and possessed the firearm in connection with that drug offense. As an illegal alien, Villarreal-Sanchez is expected to face deportation proceedings following his release from prison.
Following a tip, law enforcement went to Villarreal-Sanchez’s home in Laredo on May 14, 2015, where he had been living illegally for some time. It was there that agents with Homeland Security Investigations (HSI) discovered he possessed a pistol and a firearm in his bedroom. A criminal complaint was filed the following day which further detailed that agents had also found three baggies of cocaine hidden in some chicken feed in Villarreal-Sanchez’s back yard.
Villarreal-Sanchez has been in custody since his arrest on May 14, 2015, where he 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 the charges was conducted by HSI with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez is prosecuting the case.
U.S. Attorney's Office Collects $129,598,713.70 in Civil and Criminal Actions for Crime Victims and U.S. Taxpayers in Fiscal Year 2015Read the Press Release
CHARLOTTE, N.C. - U.S. Attorney Jill Westmoreland Rose announced today that the Western District of North Carolina (WDNC) collected $129,598,713.70 in criminal and civil actions in Fiscal Year 2015 (FY 2015). Of this amount, $12,327,951.04 was collected in criminal actions and $117,270,762.66 was collected in civil actions.*
Attorney General Loretta E. Lynch announced on Thursday, December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The total includes all monies collected asw a result of Justice Department-led enforcement actions and negotiated. civil settleents. It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients. Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department's combined appropriations for the 94 U.S. Attorney's Offices and the main litigating divisions in that same period.
“The lawyers and staff of this Office work diligently to protect the citizens of our district and deliver justice. We also strive to ensure that criminals are not enriched by their conduct, criminal and civil debts are recovered, and restitution is paid to victims of crimes. A portion of the recovered funds is also returned to the federal treasury to support much needed victim services and to fund ongoing federal, state and local law enforcement efforts and initiatives,” said U.S. Attorney Rose. “It is important to highlight that as a federal agency the Department of Justice, through the work of its employees, collects seven and a half times the amount it costs to run the agency. I would call that a good return on the public’s investment,” Rose added.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. While restitution is paid to victims, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
In December 2002, in US v. Reid (3:02-cr-169), Douglas W. Reid was sentenced to 51 months in prison for his involvement in an investment fraud scheme. In FY 2015, $4,118,255 was collected and applied toward the restitution ordered by the court, closing the debt in this case.
In U.S. v. Simmons (3:10-cr-23), WDNC collected $3,055,938, and the money was transferred to the U.S. Clerk of Court to be distributed to victims in this criminal case. Keith Franklin Simmons and his conspirators orchestrated a Ponzi scheme that defrauded 400 victims of more than $40 million. A total of 11 defendants were convicted in connection with this case, with the mastermind of the scheme, Simmons, currently serving a 40-year sentence. Also in FY 2015, in U.S. v. Le (3:14-cr-110) the office collected $1,041,288.52 from Dr. Le, who was sentenced to 18 months in prison in September 2015, on healthcare fraud and tax evasion charges.
In FY 2015, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education. The Western District of North Carolina conducted a joint investigation with the Justice Department’s Civil Division into Adventist Hospital system, which resulted in a recovery of $115 million for the Medicare program. The investigation was based on two qui tam complaints filed in the Western District of North Carolina.
Additionally, the Western District of North Carolina also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $9,166,511,236.73 in cases pursued jointly with these offices. Of this amount, $5,694,936.73 was collected in criminal actions and $9,160,816,300 was collected in civil actions. For example, in FY 2015, WDNC collected $5,600,250 million as part of Duke Energy Carolinas LLC and Duke Energy Progress Inc.’s settlement with the U.S. Attorney’s Offices for the Western, Middle and Eastern Districts of North Carolina.
Additionally, working with partner agencies and divisions, WDNC collected $12,015,903 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used, among other purposes, to restore funds to crime victims.
* In measuring collections recovered in FY 2015, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2015.
Two Men Sentenced to Life Terms in Murder of U.S. Border Patrol Agent Brian TerryRead the Press Release
Assistant U.S. Attorneys Todd Robinson (619) 546-7994 or David Leshner (619) 546-7921
NEWS RELEASE SUMMARY – December 9, 2015
TUCSON, Arizona - Ivan Soto-Barraza and Jesus Lionel Sanchez-Meza were sentenced to life terms today for the first-degree murder of U.S. Border Patrol Agent Brian Terry.
The defendants were also sentenced by U.S. District Judge David C. Bury to additional prison time for other crimes related to the murders. They received four 20-year terms each, which are to be served concurrently, and a 10-year term for discharging a firearm during a crime of violence, which will run consecutive to the life terms.
Soto-Barraza and Sanchez-Meza were convicted by a federal jury in October of first-degree murder, second degree murder, conspiracy to interfere with commerce by robbery, attempted interference with commerce by robbery, using and carrying a firearm during a crime of violence, and assault on Agent Terry and three additional federal officers – Border Patrol Agents William Castano, Gabriel Fragoza, and Timothy Keller.
According to evidence presented at trial, during the evening of December 14, 2010, Soto-Barraza, Sanchez-Meza and three other men were in the United States for the purpose of robbing drug traffickers of their contraband. While Agent Terry and three other Border Patrol Agents were engaged in the performance of their official duties, members of the defendants’ group exchanged gun fire with the agents and one of the shots fired by a member of the defendants’ group killed Agent Terry.
U.S. Attorney Laura Duffy said, “The jury's verdict and life sentences imposed today reflect a just result for a crime which has had a profound effect not only on the family of Agent Brian Terry, but also the men and women who daily put their lives at risk to keep us all safe.”
Two other men, Manuel Osorio-Arellanes and Rosario Rafael Burboa-Alvarez, previously pleaded guilty to first-degree murder for their roles in Agent Terry’s death. Yet another two men, Jesus Rosario Favela-Astorga and Heraclio Osorio-Arellanes, remain fugitives.
At trial, the United States was represented by attorneys from the Southern District of California, Special Attorneys Todd W. Robinson and David Leshner. The U.S. Attorney’s Office for the District of Arizona is recused. The case was investigated by the Federal Bureau of Investigation.
Twenty Five People Charged as Members of $10 Million Illegal Gambling and Money Laundering OperationRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Joshua Mellor (619) 546-9733
NEWS RELEASE SUMMARY – December 9, 2015
SAN DIEGO – Twenty five people are charged in a federal grand jury indictment with participating in an illegal gambling operation that laundered an estimated $10 million in gambling proceeds through Chula Vista and San Diego card rooms in what is believed to be the biggest illegal gambling prosecution in San Diego county in recent memory.
More than 200 agents from the FBI, Homeland Security Investigations and the IRS plus San Diego County Sheriff’s deputies and investigators from the California Department of Justice Bureau of Gambling Control served five search warrants and 22 seizure warrants early today at locations in Chula Vista, San Diego and elsewhere.
The search and seizure locations included the Village Club Card Room, also known as Seven Mile Casino in Chula Vista, and the Palomar Card Room in San Diego. The card rooms are also charged in the indictment, which was unsealed in federal court this morning. Agents seized more than $600,000 during today’s searches of player accounts and bank accounts.
Authorities around the country arrested 21 people so far today at locations around San Diego, Orange and Los Angeles counties as well as San Jose, Las Vegas, New Jersey, Arizona, New Mexico, Pennsylvania and Iowa. Five indicted defendants remain fugitives and warrants have been issued for their arrests.
These defendants, plus the two corporations, are charged in a federal grand jury indictment with various crimes, including running an Illegal Gambling Business, Conspiracy to Launder Monetary Instruments, Failure to Maintain an Anti-Money Laundering Program and Transportation for Prostitution.
Four defendants were arraigned on the indictment in federal court this afternoon before U.S. Magistrate Judge Barbara Major. Craig Kolk, Ricardo Castellanos-Velasquez, Duy Trang were granted bail; Ali Lareybi was detained pending a hearing on Friday at 10 a.m. before Judge Major. The remaining San Diego are scheduled to be arraigned before Judge Major tomorrow. The United States is seeking the removal of out-of-state defendants to San Diego.
According to court documents, some of the defendants allegedly operated unlicensed casinos out of rented Rancho Santa Fe mansions. Up to three times a week, some defendants held intimate high-stakes poker and black jack games in extravagant settings that featured professional card dealers, prostitutes, chefs and waitresses.
Court documents allege that lead defendant David Stroj operated an illegal bookmaking business that extended throughout North America, including San Diego, Los Angeles, Albuquerque, Las Vegas, Chicago, Philadelphia, South Carolina and Florida, as well as locations in Mexico and Canada.
Millions of dollars in proceeds from the gambling events were laundered through the Palomar and Village Club card rooms, Las Vegas casinos, various bank accounts, shell companies, and a bail bonds business. The ring also operated illegal offshore online gaming websites.
“This indictment describes a massive operation that laundered millions of dollars in illicit proceeds,” said U.S. Attorney Laura Duffy. “We are committed to putting an end to any activity that enables criminals to hide illicit proceeds.”
“The defendants in this case allegedly acted as a criminal enterprise that allowed the proceeds from illegal gambling to be laundered through local card rooms thereby avoiding federal financial reporting requirements that help keep our communities safe,” said FBI Special Agent in Charge Eric S. Birnbaum. “Today's indictment is an example of the FBI's commitment to work with our law enforcement partners to identity, disrupt and dismantle complex criminal conspiracies.”
“HSI is committed to serving side-by-side with our partners in the San Diego law enforcement community,” said Dave Shaw, special agent in charge for HSI San Diego. “This investigation has dismantled an illicit gambling operation with ties to money laundering and a cross-border prostitution recruitment scheme. Let it be clear, HSI will aggressively pursue any and all leads involving transnational criminal activity linked to the U.S.-Mexico border.”
“These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from an illicit poker and blackjack business,” said Special Agent in Charge Erick Martinez of IRS Criminal Investigation. “Taking assets away from illegal operations is one of the government’s most effective tools against money laundering and organized crime.”
California’s Bureau of Gambling Control Chief Wayne Quint, Jr. issued Emergency Closure Orders on both the Palomar and Village Club card rooms effective immediately.
“These casinos allegedly engaged in money laundering and illegal gambling schemes that undermine the well-being of our communities,” said Attorney General Kamala D. Harris. “I thank our California Department of Justice Bureau of Gambling Control Special Agents, as well as our local and federal law enforcement partners, for holding the alleged perpetrators accountable for their financial crimes.”
The investigation, which began in 2013, involved hundreds of intercepted calls and text messages, border crossing records plus extensive surveillance and reviews of financial records.
Stroj, the lead defendant, is described as a large-scale international bookmaker based in the San Diego area. He is charged with conducting an illegal bookmaking business, conducting an illegal poker and blackjack business and conspiracy to launder money.
According to court records, Stroj and codefendants used offshore gambling websites, including betblackdiamond.com, LBTsports.com and diamondsb.ag, to manage his bookmaking business. Stroj used financiers, a business manager, sub agents, money runners, money couriers and debt collectors to conduct the bookmaking business and launder millions of dollars.
The bookmaking clients would make checks out to the casinos such as Palomar and the Village Club, or the Wynn and Bellagio casinos in Las Vegas, and the funds would be deposited into marker or player bank accounts, court records said.
During one intercepted call, Stroj discussed gambling income and how to launder it through a card club: “Palomar is the best way I can wash the money. I don’t have to report it. I just deposit it at the Palomar and there’s no problems for me.”
In another call, Stroj said: “Between you and me, the best way to launder money, you do it through these local casinos in San Diego…that’s how, if someone owes me a 100 ($100,000) and they want to wire it to me, I wire it to the Palomar and leave it in my player’s bank and they give me chips.”
Card rooms are legal in the state of California if they comply with strict regulations. For example, an owner of a gambling establishment must apply for and obtain a valid state gambling license from the Bureau and the California Gambling Control Commission (Commission). The Bureau's Licensing staff will conduct in-depth background investigations on applicants to determine whether they are suitable to hold a state gambling license. Suitability is determined by a number of factors including but not limited to the applicant's honesty, integrity, general character, reputation, habits, and financial and criminal history.
DEFENDANTS Case Number: 15cr2932-BAS
David Stroj
Matthew Greenwood
Jeffrey Broadt
Jeffrey Stoff
*Arturo Diaz-Ramirez
Jaime Behar
Robert Stroj
Craig Kolk
Jean Paul Rojo
Joshua Jones
Ricardo Castellanos-Velasquez
*Alexandra Kane
Bryan Sibbach
Joseph Palermo
Thomas Mallozzi
Stephen Bednar
Christopher Parsons
*Jeffrey Mohr
*Kyle Allen
Michael Hipple
Duy Trang
Alfredo Barba
Ali Lareybi
Harvey Souza
Naseem Salem
*Fugitives
CORPORATIONS
Palomar Card Club
VC Cardroom, Inc., dba Seven Mile Casino and Village Card Club
SUMMARY OF CHARGES
Two counts, Conducting an Illegal Gambling Business, in violation of Title 18 U.S.C. Sec. 1955
Maximum Penalty Five Years in Custody, $250,000 fine, three years supervised release
(Count one is the first 20 defendants in the indictment)
(County two is David Stroj, Jeffrey Stoff, Arturo Diaz-Ramirez, Jaime Behar, Duy Trang and Alfredo Barba)
One count, Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. Sec 1956 (h)
Maximum Penalty 20Years in Custody, $500,000 fine, three years supervised release
(David Stroj, Matthew Greenwood, Jeffrey Broadt, Jeffrey Stoff, Arturo Diaz-Ramirez, Jaime Behar, Robert Stroj, Craig Kolk, Jean Paul Rojo, Ricardo Castellanos-Velasquez, Alexandra Kane, Bryan Sibbach, Joseph Palermo, Christopher Parsons, Jeffrey Mohr, Duy Trang, Ali Lareybi, Naseem Salem and Palomar Card Club)
Two counts, Failure to Maintain Anti-Money Laundering Program , in violation of Title 31 U.S.C. Sec. 5318 (h) (1) and 5322 (a)
Maximum Penalty Five Years in Custody, $250,000 fine, three years supervised release
Once count for each corporation
Two counts, Transportation for Prostitution, in violation of Title 18 U.S.C. Sec. 2421
Maximum Penalty 10 Years in Custody, $250,000 fine, three years supervised release
(Defendants David Stroj and Jeffrey Broadt only)
AGENCIES
FBI
Homeland Security Investigations
Internal Revenue Service
California Department of Justice Bureau of Gambling Control
San Diego County Sheriff’s Department
Tobacco Wholesaler Charged in Tax Fraud SchemeRead the Press Release
BOSTON – The owner of tobacco wholesale businesses in Massachusetts and New Hampshire was charged in an indictment unsealed on Dec. 7, 2015 in U.S. District Court in Springfield in connection with his scheme to defraud Massachusetts and New Hampshire of substantial tobacco tax revenue.Khalid Siddique, 59, of Attleboro, was charged in a 28-count indictment with two counts of conspiracy to commit wire fraud, 10 counts wire fraud, five counts of trafficking in contraband smokeless tobacco and 11 counts of money laundering.
The indictment alleges that between 2006 and 2012, Siddique defrauded Massachusetts and New Hampshire by failing to pay excise taxes on smokeless tobacco and cigars purchased from businesses he owned. It is alleged that co-conspirator Syed Bokhari transferred smokeless tobacco to the Attleboro business without reporting such transfers to the appropriate state tax authorities, as required under the Prevent All Cigarette Trafficking (PACT) Act. Siddique distributed smokeless tobacco without paying any of the required taxes, and filed false tobacco tax returns for cigars which vastly under-stated the amount of tax he owed.
On Thursday, Dec. 3, 2015, additional charges were handed down by a federal grand jury against co-defendant Syed I. Bokhari, 51, in connection with his role in the scheme which defrauded Massachusetts and Connecticut of substantial tobacco tax revenue.
The charges of conspiracy and wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for each count. The change of trafficking in contraband smokeless tobacco provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for each count. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the transaction for each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Commissioner Mark Nunnelly of the Massachusetts Department of Revenue; and Commissioner Kevin B. Sullivan of the Connecticut Department of Revenue Services, made the announcement today. The cases are being prosecuted by Assistant U.S. Attorneys Alex J. Grant and Katharine Wagner of Ortiz’s Springfield Branch Office.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
To the Citizens of Harney County, OregonRead the Press Release
As the Acting United States Attorney for the District of Oregon, I write to the citizens of Harney County to address ongoing attempts by outside individuals and organizations that are making statements and using social media to express views which are clearly contrary to what occurred publicly in an open courtroom. I understand that there are some individuals and organizations who object to the Hammonds returning to prison to serve the remainder of their sentences mandated by statute. I respect their right to peacefully disagree with the prison terms imposed. However, any criminal behavior contemplated by those who may object to the court's mandate that harms someone will not be tolerated and will result in serious consequences. The following is a summary of the facts in United States v. Dwight and Steven Hammond, including the actions and positions taken by this office throughout the course of the case.
Five years ago, a federal grand jury charged Dwight and Steven Hammond with committing arson on public lands, and endangering firefighters. The charges came after the Hammonds rejected an offer to settle the case by pleading guilty to lesser charges and sentences.
Three years ago, after a two-week trial in Pendleton, Oregon, a jury found 70-year old Dwight and his son, 43-year old Steven Hammond, guilty of committing arson on public lands in 2001. Steven Hammond was also found guilty of committing a second arson in 2006. They were found not guilty of other arson charges, and while the jury was deliberating on the remaining charges, the Hammonds negotiated for the dismissal of those charges and a promise from the U.S. Attorney to recommend the minimum sentence mandated by law. The Hammonds assured the trial judge that they knew the law required they serve no less than five years in prison. The U.S. Attorney also agreed they should remain free until sentencing.
The Hammonds had long ranched private and public lands in Eastern Oregon. Although they leased public lands for grazing, they were not permitted to burn the lands without prior authorization from the BLM. In 1999, a BLM employee reminded Steven Hammond of this after he started a fire that escaped onto public land.
At trial, jurors heard from a hunting guide, a hunter and the hunter’s father, who saw the Hammonds illegally, slaughter a herd of deer on public land. At least seven deer were shot with others limping or running from the scene. Less than two hours later, the hunting guide and the hunter and his father, were forced to abandon their campsite because a fire was burning in the area where the deer had been shot. The hunting guide’s testimony and photographs established fires were burning hours before Steven Hammond called the BLM and said he was going to do a burn of invasive species in the area.
A teenage relative, who was with the Hammonds in 2001 when those fires were set, told the jury that he was handed a box of “Strike Anywhere” matches, and Steven Hammond told him to drop lit matches on the ground so as to “light up the whole country on fire.” He did as instructed and the resulting eight to ten foot flames spread quickly. Fearing for his life he was forced to take shelter in a creek. The jury heard evidence that once back at the ranch, Dwight and Steven told him to “keep his mouth shut,” and that “nobody needed to know about the fire.” The fires destroyed evidence of the deer slaughter and took 139 acres of public land out of public use for two years.
The evidence at trial convinced the jury beyond a reasonable doubt that the Hammonds were guilty of the federal crime of arson; that is, maliciously damaging United States property by fire. The jury was neither asked if the Hammonds were terrorists, nor were defendants ever charged with or accused of terrorism. Suggesting otherwise is simply flat-out wrong.
The jury also found Steven Hammond guilty of committing a second arson in 2006. That summer, BLM firefighters were battling several significant fires caused by lightning strikes. The Harney County Fire Marshal imposed a burn ban and a “red flag” warning was in effect. Despite the burn ban, and knowing that firefighters were in the area, Steven Hammond set fires at night without notifying anyone. He did so to save his winter feed. After seeing the fires, the firefighters moved to a safer location. When confronted by a firefighter the next day, Steven Hammond admitted setting the fires, and made no apology for doing so.
The crimes that the jury found the Hammonds committed carried five-year congressionally-mandated minimum sentences. In October 2012, U.S. District Court Judge Michael R. Hogan imposed sentences below what the law required. The U.S. Attorney's Office appealed the sentences imposed by Judge Hogan because they were not the sentences mandated by Congress for the crimes committed. The Ninth Circuit Court of Appeals agreed, and reversed the Hammonds’ sentences. The cases were sent back to the District Court with the directive that the statute’s mandate be followed. The Supreme Court upheld the Ninth Circuit’s decision, and in October 2015, Chief Judge Ann Aiken imposed the five-year prison terms. The U.S. Attorney agreed to allow the Hammonds to self-surrender after the holidays.
Much has been said and written by persons who were not in the Pendleton courtroom during the trial or in Eugene during the sentencing hearings. Much of it is inaccurate. For example, the federal prosecutor has never called the Hammonds terrorists, an allegation made by some of the Hammonds’ supporters. As Acting U.S. Attorney, I do not consider them to be terrorists. At the sentencing hearings, the federal prosecutor described the Hammonds’ contributions to their community and urged the court not to impose the higher sentences recommended by the U.S. Probation office. The prosecutor also assured the court that the sentences mandated by Congress were neither cruel nor unusual given the seriousness of the crimes and the safety threat posed to the hunters (in 2001) and the firefighters (in 2006). The Hammonds received a fair trial, they were found guilty in Pendleton, Oregon, by a jury of their peers, and they ultimately received lawful sentences mandated by Congress.
As Americans, we have the privilege of being served by the finest judicial system in the world. Despite suggestions to the contrary, what took place during this case was a process that followed the time-honored fundamental principles of the rule of law— from the investigation, negotiations, a public trial with the presentation of lawfully admitted evidence, the jury's findings, judicial findings, appellate rulings, to the final imposition of sentence. We stand by the ultimate resolution of this case.
Three German Executives Indicted for Participation in Parking Heater Price-Fixing SchemeRead the Press Release
A federal grand jury in Detroit returned an indictment against Frank Haeusler, Volker Hohensee and Harald Sailer for their alleged participation in a conspiracy to fix the prices of parking heaters.
The indictment charges the three German executives – one current and two former – with conspiring to fix the prices of parking heaters used in commercial vehicles and sold in the aftermarket in the United States and elsewhere. Parking heaters are devices that heat the interior compartment of a motor vehicle independent of the operation of the vehicle’s engine.
“These senior company officials conspired to fix the aftermarket prices of parking heaters sold to hundreds of businesses throughout the United States and North America,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Today’s indictment reinforces the Department of Justice’s commitment to prosecute those who scheme to thwart competition.”
“Today’s charges outline a deceptive scheme to subvert competition in the marketplace,” said Assistant Director in Charge Diego G. Rodriguez. “Those who engage in this type of criminal activity not only stand to defraud consumers, but erode the public’s trust in the competitive bidding process. The FBI will continue to work with the Antitrust Division to ensure the integrity of competition across all industries.”
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, alleges that Hohensee, Haeusler and Sailer worked together with other conspirators to artificially set aftermarket prices for parking heaters used in commercial vehicles in the United States and beyond. The charged executives and their co-conspirators met to discuss parking heater prices, agreed to set a price floor for parking heater kits and also agreed to coordinate the timing and amount of price increases for parking heaters.
According to the charge, the conspiracy existed from as early as October 2007 and lasted until at least Nov. 19, 2012. Hohensee is the former president of Espar Inc. and a resident of Canada; Haeusler is a former vice president of Espar Inc.’s German affiliate, Eberspaecher Climate Control Systems; and Sailer held the same position at Eberspaecher and remains an executive with the company.
On March 12, 2015, Espar Inc. admitted its role in the price-fixing conspiracy and pleaded guilty in the U.S. District Court for the Eastern District of New York. The company was sentenced on June 25, 2015 and has paid a $14.9 million criminal fine.
Today’s charge is the result of an ongoing federal antitrust investigation handled by the Antitrust Division’s New York Office with assistance from the FBI’s New York Field Office. Anyone with information concerning price fixing or other anticompetitive conduct in the parking heater industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Haeusler et al Indictment (464.22 KB)
Ten Individuals Indicted in December Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the November 2015 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
JOHN RICHARD FLOURNOY, age 47, of Coalgate, Oklahoma
Theft of Government Funds
Making a False Statement
Forfeiture AllegationThe Indictment alleges that beginning in or about February, 2011, and continuing until on or about December 23, 2013, within the Eastern District of Oklahoma, defendant JOHN RICHARD FLOURNOY, did willfully and knowingly steal and purloin money of the Social Security Administration, a department or agency of the United States, namely, Social Security Administration Supplemental Security Income payments to which he knew he was not entitled, having a value in excess of $1,000.00. It further alleged that on or about July 10, 2012 and on or about July 8, 2013, in the Eastern District of Oklahoma, the Defendant, did knowingly and willfully make and cause to be made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the Social Security Administration, an agency of the United States, in that on a Social Security Administration Representative Payee Report the Defendant stated that D.F. resided with Defendant, when in truth and fact, as Defendant well knew, D.F. did not reside with the Defendant. A Forfeiture Allegation is also included in the Indictment.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General. The charges are in violation of Title 18, United States Code, Section 641, punishable by not more than 10 years imprisonment; up to a $250,000.00 fine and Title 18, United States Code, Section 1001(a)(2), punishable by not more than 5 years imprisonment; up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace
KAY ANN FARROW, age 69, of Eufaula, Oklahoma
Wire Fraud
Forfeiture AllegationThe Indictment alleges that on or about July 11, 2014, in Eufaula, Oklahoma, in the Eastern District of Oklahoma and elsewhere, KAY ANN FARROW, for the purpose of executing the scheme, caused to be transmitted by means of wire communication in interstate commerce writings, signs, signals, pictures, and sounds. It further alleged that on or about July 16, 2014, in Eufaula, Oklahoma, in the Eastern District of Oklahoma and elsewhere, the Defendant, for the purpose of executing the scheme, caused to be transmitted by means of wire communication in interstate commerce writings, signs, signals, pictures, and sounds. A Forfeiture Allegation is also included in the Indictment.
The charges arose from an investigation by the Eufaula Police Department and the Federal Bureau of Investigation. The charges are in violation of Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Kristin Harrington
BOB GENE HALL, age 35, of Cushing, Oklahoma
a/k/a ROBERT GLEN HENSLEYDrug Conspiracy
Distribution of Methamphetamine
Forfeiture AllegationThe Indictment alleges that beginning in or about February 2015, the exact date being unknown to the Grand Jury, and continuing until on or about September 1, 2015, within the Eastern District of Oklahoma and elsewhere, BOB GENE HALL, a/k/a Robert Glen Hensley, did knowingly and intentionally combine, conspire, confederate and agree with others, both known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance. It further alleged that on or about September 1, 2015, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance. A Forfeiture Allegation is also included in the Indictment.
The charges are a result of an investigation by the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Section 846, 841(a)(1) & 841(b)(1)(A), punishable by mandatory life imprisonment, and up to $20,000,000.00 fine; and Title 21, United States Code, Sections 841(a)(1) & 841(b)(1)(B), punishable by not less than 10 years imprisonment, and up to $8,000,000.00 fine.
Assistant United States Attorney Shannon Henson
ANTONIO JUAN PAREDES, age 35,
Assault with a Dangerous Weapon
The Indictment alleges that on or about July 21, 2012, in the Eastern District of Oklahoma, at the Choctaw Travel Plaza in Broken Bow, Oklahoma, in Indian Country, within the special maritime and territorial jurisdiction of the United States, the defendant, ANTONIO JUAN PAREDES, an Indian, assaulted M.C. with a dangerous weapon, with the intent to do bodily harm.
The charge is a result of an investigation by the Choctaw Nation Tribal Police, Broken Bow Police Office and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Sections 1153, 1151 & 113(a)(3), punishable by no more than 10 years imprisonment, up to $250,000.00 or both.
Assistant United States Attorney Edward Snow
NICKOLLE DENISE DIXON, age 24, of Fort Smith, Arkansas
Embezzlement and Theft from Indian Tribal Organizations
The Indictment alleges from in or about January 2013 to on or about January 5, 2014, in the Eastern District of Oklahoma, the defendant, NIKOLLE DENISE DIXON, did steal, embezzle and knowingly and willfully convert to her own use monies in excess of $1,000.00 which had been entrusted to her custody and care as an employee of the Choctaw Nation of Oklahoma, an Indian tribal organization.
The charge is a result of an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Section 1163, punishable by no more than 5 years imprisonment, up to $250,000.00 or both.
Assistant United States Attorney Edward Snow
ALLEN MICHAEL SCOTT, age 22, of Pottsboro, Texas
DUNG THI NGOC NGUYEN, age 33, of Carrollton, Texas
Theft by Officers or Employees of Gaming Establishment on Indian Lands
The Indictment alleges from on or about February 9, 2015, to on or about February 20, 2015, in the Eastern District of Oklahoma, ALLEN MICHAEL SCOTT and DUNG THI NGOC NGUYEN, defendants herein, while ALLEN MICHAEL SCOTT was an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charge is a result of an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Sections 1168(b) & 2, punishable by no more than 20 years imprisonment, up to $1,000,000.00 or both.
Assistant United States Attorney Edward Snow
RODNEY GENE BENNETT, age 25, of Wetumka, Oklahoma
Possession with Intent to Distribute Methamphetamine
The Indictment alleges on or about August 5, 2015, in the Eastern District of Oklahoma, the defendant, RODNEY GENE BENNETT, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge is a result of an investigation by the Seminole Nation Tribal Police and the Drug Enforcement Administration. The charge is in violation of Title 21, United States Code, Sections 841(a)(1) & 841(b)(1)(B), punishable by not less than 5 years imprisonment, up to $5,000,000.00 or both.
Assistant United States Attorney Tim Hammer
SAMMIE WAYNE COX, age 51, of Spiro, Oklahoma
Possession with Intent to Distribute Methamphetamine
Possession of Firearm in Furtherance of a Drug Trafficking Crime
Felon in Possession of FirearmThe Indictment alleges on or about October 30, 2015, within the Eastern District of Oklahoma, the defendant, SAMMIE WAYNE COX, did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of methamphetamine (actual), a Schedule II controlled substance. It also alleged On or about October 30, 2015, within the Eastern District of Oklahoma, the defendant, did knowingly possess firearms in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count One and the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms which had been shipped and transported in interstate commerce.
The charges are a result of an investigation by the Oklahoma Highway Patrol, the Oklahoma Bureau of Narcotics and the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Sections 841(a)(1) & 841(b)(1)(A)(viii), punishable by not less than 10 years imprisonment, up to $10,000,000.00 or both; Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 5 years imprisonment, up to $250,000.00 fine; and Title 18, United States Code, Section 922(g)(1), punishable by not more than 10 years imprisonment, up to $250,000.00 fine or both.
Assistant United States Attorney Tim Hammer
DONALD RAY McCOY, Jr., age 36, of Stilwell, Oklahoma
Felon in Possession of Firearm
The Indictment alleges On or about July 29, 2015 and continuing until July 30, 2015, within the Eastern District of Oklahoma, the defendant, DONALD RAY McCOY, Jr., having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The charge is a result of an investigation by the Tahlequah Police Department, District 27 Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The charge is in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) & 924(e)(1), punishable by not less than 15 years imprisonment, up to $250,000.00 or both.
Assistant United States Attorney Dean Burris
Tahlequah Man Sentenced to 63 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DEREK ALLEN CLELL HORNEY, age 30, of Tahlequah, Oklahoma, was sentenced to 63 months imprisonment and 5 years supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A)(viii).
The charges arose from an investigation by the Tahlequah Police Department and the Drug Enforcement Administration.
The Indictment alleged that on or about November 14, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of Methamphetamine (actual), a Schedule II controlled substance.
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.
Assistant United States Attorney Shannon Henson represented the United States.
St. Louis County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – RONALD OLDANI was sentenced to 60 months in prison, followed by ten years supervised release involving his possession of child pornography.
Oldani, St. Louis City, pled guilty in September to two felony counts of possession of child pornography. He appeared today for sentencing before United States District Judge Stephen N. Limbaugh, Jr.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Colleen Lang handled the case for the U.S. Attorney's Office.
Southeastern Connecticut Cocaine Trafficker Sentenced to More Than 9 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PEDRO RIVERA, also known as “Cheito,” 37, of Groton, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 116 months of imprisonment, followed by five years of supervised release, for trafficking cocaine. RIVERA’s mother and father, who assisted RIVERA’s cocaine trafficking operation, also were sentenced today.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
RIVERA arranged the shipment of cocaine from sources in Puerto Rico to the New London area, and was assisted by individuals who lived in and around Morovis, Puerto Rico, including his parents, JUAN RIVERA ORTIZ and IVETTE PAGAN RODRIGUEZ. RIVERA then distributed the cocaine to customers in southeastern Connecticut through a network of associates.
Judge Bryant sentenced JUAN RIVERA ORTIZ, 58, to 30 months of imprisonment, followed by three years of supervised release, and IVETTE PAGAN RODRIGUEZ, 54, to five years of probation.
PEDRO RIVERA has been detained since his arrest on April 3, 2013. On December 9, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more cocaine.
RIVERA ORTIZ and PAGAN RODRIGUEZ pleaded guilty on November 24, 2014.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
Six Indicted in Connection with Massena Cocaine and Heroin RingRead the Press Release
PLATTSBURGH, NEW YORK – Six people have been indicted on charges related to cocaine and heroin trafficking in and around the Massena area, announced United States Attorney Richard S. Hartunian, James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and Mark LaBrake, Chief of Police for the Massena Police Department.
The indictment charges the following people with conspiracy to possess with intent to distribute and to distribute heroin and cocaine:
* Jonathan Rodriguez, a/k/a “Javi” a/k/a “Big Guy” a/k/a “Big Man” a/k/a “Babs” a/k/a “Bebz” a/k/a/ “Bebo,” age 27, of Bronx, New York;
* Ricardo Garcia, aka “Bucky,” age 24, of New York City;
* Tina Fumano, age 42, of Massena, New York;
* Cecilia Lindsey, a/k/a “Cece,” age 28, of Massena, New York;
* Nicole Francis, age 27, of Norwood, New York; and
* William Rochefort, age 21, of Massena, New York.Rodriguez, Fumano and Garcia each face at least 5 years and up to 40 years of imprisonment, and a maximum $5 million fine, if convicted. Lindsey, Francis and Rochefort each face up to 20 years of imprisonment and a maximum $1 million fine if convicted.
The defendants, except Garcia, will appear for arraignments in Plattsburgh on December 10, before United States Magistrate Judge Gary L. Favro. Garcia is in custody in the Southern District of New York and will appear for arraignment at a later date.
“Vigorous law enforcement by federal, state, local, and Canadian agencies is essential to ending the emerging heroin epidemic and combatting the continuing cocaine problem,” stated U.S. Attorney Richard S. Hartunian. “The outstanding collaboration here was critical to bringing this case. We remain committed to working together to maintain public health and safety in this community.”
“Dismantling drug trafficking organizations is a critical component of our effort to enhance public safety in our communities,” stated HSI Special Agent in Charge James C. Spero.
“By disrupting these organizations, we are on the path to addressing the root causes of a myriad of criminal activity associated with drug trafficking.”“This operation is a success story of how agencies come together to address the illegal drug trade in Northern New York,” stated Massena Police Chief Mark LaBrake. “This operation, which started with an investigation by the Massena Police Department, was able to dismantle a large pipeline of cocaine and heroin trafficking from New York City to Massena. The hope is that people from out of the area will realize that bringing this poison to our community will not be tolerated. I again want to thank our local, state and federal partners for their assistance in helping battle this problem of dangerous drugs that plagues our community.”
The indictment is the result of a year-long investigation led by HSI’s Border Enforcement Security Task Force (BEST) in Massena, which consists of law enforcement officers from the Massena Police Department, the St. Lawrence County Sheriff’s Department and the New York State Police, and which receives assistance from the U.S. Border Patrol, the Drug Enforcement Administration, the District Attorneys of Clinton, Franklin, and St. Lawrence Counties, the St. Regis Mohawk Tribal Police Department, the Oneida Indian Nation Police, U. S. Customs and Border Protection, the U.S. Coast Guard Investigative Service, the Potsdam Police Department, the Royal Canadian Mounted Police, the Surete du Quebec, and the New York Attorney General’s Office.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas G. Collyer.
Sacramento Man Sentenced to 20 Months in Prison for Tax Preparation FraudRead the Press Release
SACRAMENTO, Calif. — William G. Green, 49, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to 20 months in prison and ordered to pay restitution to the IRS for assisting in the preparation of false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, while Green prepared tax returns at a Sacramento business called “Will the Tax Man” from 2007 to at least April 2011, he knowingly placed false information on his clients’ returns to increase their refunds or reduce their taxes owed. The false information that Green added included false charitable contributions in large round numbers to charities like Goodwill Industries, AMVETS, and United Cerebral Palsy, and other deductions and credits related to education and business expenses. The false deductions and credits were not based on information provided by Green’s clients, and Green typically did not inform his clients that these false deductions and credits had been added. Green’s conduct resulted in a total tax loss of approximately $482,000.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Christopher S. Hales prosecuted the case. Trainer
Roofing Company Owner Pleads Guilty to Charges in Connection with Employee's Fatal FallRead the Press Release
PHILADELPHIA - James J. McCullagh, 60, of Meadowbrook, PA, pleaded guilty today to four counts of making false statements, one count of obstruction of justice, and one count of willfully violating an Occupational Safety and Health Administration (OSHA) regulation causing death to an employee. U.S. District Court Judge Nitza I. Quinones Alejandro scheduled a sentencing hearing for March 29, 2016. The defendant faces a maximum statutory sentence of 25 years in prison, a possible fine, supervised release, and a $510 special assessment.
McCullagh, who owns James J. McCullagh Roofing, failed to provide fall protection equipment to his employees. On June 21, 2013, one of McCullagh’s employees was killed after falling approximately 45 feet from a roof bracket scaffold while performing roofing work for McCullagh. In connection with the OSHA investigation of the fatality, McCullagh attempted to cover up his failure to provide fall protection by falsely stating, on four occasions, that he had provided fall protection equipment, including safety harnesses, to his employees. McCullagh knew that he had not provided fall protection to his employees and none of his employees had safety harnesses or any other form of fall protection. McCullagh told an OSHA Compliance Safety and Health Officer that his employees had been wearing safety harnesses tied off to an anchor point when he saw them earlier in the day prior to the fall. McCullagh also directed other employees to falsely state that they had fall protection, including safety harnesses, on the day of the fall.
The case was investigated by the United States Department of Labor-Office of Inspector General Labor Racketeering and Fraud Investigations and the Occupational Safety and Health Administration, with assistance from the U.S. Department of Labor's Occupational Safety and Health Administration and Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Rochester Man Pleads Guilty to Bank RobberyRead 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 Maximilion Broadnax, 31, of Rochester, NY, pleaded guilty to robbing the Chase Bank at 900 Dewey Avenue in Rochester, before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Charles E. Moynihan, who is handling the prosecution of the case, stated that on May 22, 2015, Broadnax’s co-defendant, Tiffany Hogan, entered the Chase Bank just after it opened and passed the bank teller a note drafted by Broadnax. The note demanded money and stated that nobody would be hurt if the teller complied. After receiving a specific amount of United States currency, Hogan left the bank and got into a white minivan in which Broadnax was waiting and the two drove away from the location.
Hogan and Broadnax were arrested later that same day at 17 Second Street in Rochester by members of the Rochester Police Department who were looking for Broadnax in connection with his involvement in stolen vehicles. While taking Broadnax into custody, officers saw that Broadnax’s pants fell down and a large amount of United States currency fell out.
Tiffany Hogan was also convicted of bank robbery.
Today’s plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, as well as the Town of Greece Police Department, under the direction of Chief Patrick Phelan, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for January 20, 2016, at 2:30 p.m. before Judge Larimer.Prosecutors, Officers and Agents Recognized by the Department of JusticeRead the Press Release
HAMMOND – United States Attorney David Capp announced that:
David J. Nozick, Assistant U.S. Attorney for the U.S. Attorney’s Office, Northern District of Indiana;
Bruce R. Hegyi, Trial Attorney for the Department of Justice Capital Case Section;
Jason M. Gore, Special Agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives;
Arthur L. Grist, Jr., Special Agent for the Federal Bureau of Investigation; and
Brian M. Paine, Sergeant for the East Chicago Police Department,
all received the highest award from the Department of Justice, Criminal Division during a ceremony in Washington D.C. on Monday, December 7, 2015. Attorney General Loretta Lynch spoke at this ceremony recognizing outstanding law enforcement efforts throughout the country.
The award was presented for their outstanding performance in the investigation and prosecution of the Imperial Gangsters, particularly the conviction of the local leader, Juan Briseno. Briseno was sentenced to six life sentences in prison earlier this year. In total, 24 members or associates of this criminal organization were indicted, convicted and sentenced to substantial terms of imprisonment.
United States Attorney Capp stated, “All of us are extremely proud of the exemplary work by this law enforcement team. The Imperial Gangster convictions have substantially reduced the level of violence in East Chicago. The tireless work of these individuals has greatly benefitted the citizens of Northwest Indiana. Yesterday’s award reflects the national importance and recognition of their efforts.”
East Chicago Police Chief Mark Becker stated, “Sgt. Paine’s award is a great honor for him and our department. We look forward to our continued partnership with the federal and other local departments in our ongoing effort to enhance the safety of our communities.”
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Previously Convicted Felon from Newark, New Jersey, Charged with Firearms Possession, Drug Distribution OffensesRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man with at least six felony convictions in New Jersey courts was arrested today after federal law enforcement officers found four handguns, a 12-guage shotgun and more than 500 grams of cocaine at his residence, U.S. Attorney Paul J. Fishman announced.
Carlos Bess, 35, of Newark, New Jersey, is charged by criminal complaint with one count of possessing with intent to distribute 500 grams of cocaine and five counts of being a felon in possession of a firearm. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to the complaint:
Since June 2015, agents with the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating the sales of narcotics, including heroin and cocaine, in and around Middlesex and Essex Counties. Pursuant to a lawful search warrant executed at Bess’s Newark residence this morning, federal agents found a loaded .357 revolver, two loaded .380 pistols, a loaded 9 millimeter pistol, a 12-gauge shotgun and more than 500 grams of cocaine.
U.S. Attorney Fishman credited special agents with the ATF, under the direction of Special Agent in Charge George P. Belsky in Newark, and special agents with the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: John H. Yauch Esq., Assistant Federal Public Defender, Newark
Pittston Man Indicted for Heroin Trafficking and Firearm OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Pittston man was indicted yesterday by a federal grand jury in Scranton on heroin trafficking and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Samuel Lombardo, age 50, with distributing and possessing with intent to distribute heroin in Pittston on two occasions in August of 2015. The indictment also charges Lombardo with possessing a firearm in furtherance of his heroin trafficking activities.
The charges stem from a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Kingston Police Department in which Lombardo allegedly sold heroin on two occasions in August of 2015. When Mr. Lombardo was stopped he had 7 additional bags of heroin and a loaded .25 caliber semi-automatic Armi Tanfolio handgun inside of his vehicle.
The investigation of these cases was conducted by the ATF, working in conjunction with the Kingston Police Department. The prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Lombardo faces a minimum of 5 years and up to a lifetime term of incarceration as well as fines totaling $3,250,000.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Philadelphia Man Charged with Stealing Dead Mother's BenefitsRead the Press Release
PHILADELPHIA - Anthony Cooper, 67, 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 February 1991 until December 2011. The defendant’s alleged actions resulted in a loss to the government of approximately $69,528.
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 $69,528, a 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.
Pembroke Man Sentenced for Tax EvasionRead the Press Release
A Pembroke, Mass., man was sentenced today in U.S. District Court in Boston in connection with failing to pay taxes on more than $1.1 million he earned as a carpenter from 1998 to 2006.
Theodore Hammond, Jr., 61, was sentenced by U.S. District Judge F. Dennis Saylor IV to six months in prison, one year of supervised release and ordered to pay the IRS restitution of $406,458. Hammond pleaded guilty in July 2015 to two counts of tax evasion and seven counts of subscribing to false tax returns.
Hammond was a self-employed carpenter for many years. From1998 to 2006, he earned $1.1 million, but failed to timely file federal income tax returns and, when he did file, he falsely reported zero income.
At sentencing, Hammond argued that he had based his conduct on information he learned from tax-defier websites, lectures, and books, such as those promoted by Irwin Schiff, who wrote The Great Income Tax Hoax: Why You Can Immediately Stop Paying This Illegally Enforced Tax, and Peter Hendrickson, who wrote Cracking the Code: The Fascinating Truth About Taxation in America. Judge Saylor noted the importance of deterring others from believing the misguided and misleading theories promoted by individuals such as Schiff and Hendrickson, both of whom served federal prison sentences.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Robert E. O’Malley, Special Agent in Charge of the Treasury Inspector General for Tax Administration, New York Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Sandra S. Bower of Ortiz’s Economic Crimes Unit and Christine Wichers of Ortiz’s Civil Division.
Oregon Man Indicted for Failure to File Tax ReturnsRead the Press Release
A federal grand jury sitting in Portland, Oregon, returned an indictment yesterday charging a Hillsboro, Oregon, resident with six counts of willfully failing to file an income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, Winston Shrout received gross income for the years 2009 through 2014 in amounts that required him to file a federal income tax return. However, for each of those years, Shrout willfully failed to file any income tax returns. Shrout’s income included payments for services as a presenter at seminars; licensing fees associated with the sale of products in his name and the name of his business, Winston Shrout Solutions in Commerce; and annual pension payments.
If convicted, Shrout faces a statutory maximum sentence of six years in prison and a maximum fine of $150,000.
Acting Assistant Attorney General Ciraolo thanked special agents of Internal Revenue Service-Criminal Investigation, who investigated the case and Trial Attorneys Stuart A. Wexler and Ryan R. Raybould of the Tax Division who are prosecuting the case.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Newark Man Sentenced for Receiving Child PornographyRead the Press Release
COLUMBUS, Ohio – Marion M. Kimball, 51, of Newark, Ohio, was sentenced in U.S. District Court to 144 months in prison and 10 years of supervised release for receiving child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down today by Senior U.S. District Judge George C. Smith.
According to court documents, investigators executed a search warrant at Kimball’s home in February 2015 after undercover agents observed child pornography files being shared via peer-to-peer file-sharing programs at an IP address registered to the home. The titles of the files indicate the pornography involved children ages seven years old to 10 years old.
In total, investigators discovered more than 11,000 images and 230 videos of child pornography.
Kimball pleaded guilty on July 31, 2015 to one count of receiving child pornography.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Stewart commended the cooperative investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville, Reynoldsburg and Powell Police Departments as well as Assistant United States Attorney Jessica H. Kim, who is representing the United States in this case.
New York Man Sentenced to 10 Years in Prison for Conspiracy to Distribute Kilograms of Cocaine and Failure to Appear in CourtRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a New York City man was sentenced to 122 months (10 years) imprisonment by U.S. District Court Judge Yvette Kane in Harrisburg for conspiracy to distribution multiple kilograms of cocaine and for failure to appear in court.
According to United States Attorney Peter Smith, Jonathan G. Almanzar, age 35, was charged in October 2005 with conspiracy to distribute and possess with intent to distribute cocaine hydrochloride. Almanzar and three others also from New York City were arrested in October 2005 at the Perkins restaurant on Linglestown Road in Harrisburg. They were there ostensibly to conduct a drug deal for 25 to 50 kilograms of cocaine. Almanzar and his co-defendants were in possession of $37,940 in United States currency. The transaction was under surveillance by federal and state agents and all were arrested at the scene.
Almanzar signed a plea agreement in July 2006. He was on bail and subsequently failed to appear in United States District Court for a scheduled guilty plea proceeding so an arrest warrant issued. Almanzar remained a fugitive for approximately 9 years until he was located and arrested in New York City in March 2015. In July 2015, a criminal Information was filed charging Almanzar with failure to appear. Almanzar plead guilty to all charges in July 2015.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Pennsylvania State Police, the Dauphin County Drug Task Force and the United States Marshals Service. Assistant United States Attorney William A. Behe prosecuted the case.
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New Albany, Indiana Man Sentenced to 30 Months in Prison for Interstate Transportation for ProstitutionRead the Press Release
Drove women from Indiana to Louisville to perform commercial sex acts
LOUISVILLE, Ky. –United States Attorney John E. Kuhn, Jr. today announced the 30-month prison sentence of a New Albany, Indiana, man who previously pleaded guilty to charges of interstate transportation for prostitution, by Chief Judge Joseph H. McKinley, Jr. in U.S. District Court.
David McNeary, age 34, pleaded guilty to three charges in a grand jury indictment on August 3, 2015. He was charged by grand jury indictment on May 20, 2015, and was arrested Friday, May 22, 2015, in Jeffersonville, Indiana. McNeary was placed on home detention with work release.
According to the plea agreement, between January 2014 and March 2014, McNeary, knowingly transported four different adult females during at least three different trips from Indiana to Kentucky, with the intent that they engage in prostitution.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Minnesota Man Sentenced for Computer Extortion Involving Confidential Pictures, VideoRead the Press Release
COLUMBUS, Ohio – Demonte Johntrell Latimore, 28, of St. Paul, Minn, was sentenced in U.S. District Court to 48 months in prison, to be served concurrently with a separate federal gun sentence, for threatening to impair the confidentiality of information obtained from a protected computer without authorization.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Newark Police Chief Barry Connell, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, a female student in a college library in Newark, Ohio had her laptop computer stolen. A few weeks later, the victim received an email from an unknown subject using the email address “iwant300dollars” that indicated that the sender had something the victim wanted back “very badly” and commented that the victim “had a lovely body.”
Latimore found explicit photos and a video of the victim that were on the laptop in a password protected folder. One of those photos was sent to the victim with a demand for $3,000 to prevent all of the photos and video being sent to her friends, co-workers and family as well as “every porn site available.”
The defendant created a Facebook account as “Payme ForSilence” and eventually posted a number of nude pictures and sex video of the victim and her boyfriend on the Facebook account. The FBI was able to get the Facebook account closed. Latimore and possibly others also continued to harass the victim via email, demanding money to prevent his wider distribution of the material.
Latimore was charged by information and pleaded guilty on July 8, 2015 to the one count of the computer extortion involving the confidential pictures and video.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and Newark Division of Police, as well as Assistant United States Attorney Deborah Solove, who is representing the United States in this case.
Midland Woman Admits Role in Wire Fraud Scheme and Obstructing JusticeRead the Press Release
In Midland, 54-year-old former federal fugitive Judy Kay Fryar pleaded guilty to federal charges in connection with a wire fraud scheme that caused an estimated $140,000 loss to her employer and for obstructing justice announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division, United States Marshal Robert Almonte and Midland Police Chief Price Robinson.
Appearing before United States Magistrate Judge David Counts this afternoon, Fryar pleaded guilty to one count of wire fraud and one count of obstruction of justice. By pleading guilty, Fryar admitted that from October 2009 to June 2011, she devised a scheme to embezzle money including monthly lease payments owed to her employer, SKP Holdings in California. According to court records, Fryar, as the former onsite property manager for the West Park Apartments in Midland, repeatedly accepted cash payments from tenants and used those monies for her own personal benefit. According to court records, Fryar altered various tenant lease payments in the company’s online property management records in an attempt to conceal her scheme. Fryar’s scheme was revealed in 2011 when an owner who was conducting an on-site visit encountered a West Park Apartment tenant attempting to make a rental payment with cash.
According to the factual basis filed in this case, Fryar obstructed justice by falsely fabricating a medical condition to obtain favor, sympathy and ten consecutive continuances between January 2013 and July 2015 for jury selection and trial on the above mentioned wire fraud charge. The Court reset jury selection and trial dates based on materially false representations that Fryar had been diagnosed with Stage 4 Lung Cancer and was undergoing extensive radiation, chemotherapy and other experimental treatments. According to Fryar, her alleged cancer progressed to the point that she no longer had sufficient mental and physical abilities to effectively participate in a trial. During this time, Fryar forged two letters and medical records from M.D. Anderson Cancer Center to support her materially false representations. Prior to the filing of her first of ten continuance motions, on August 30, 2012, M.D. Anderson Cancer Center notified Fryar that she was negative for carcinoma, melanoma and sarcoma, thus, Fryar did not require cancer treatment and/or any other related services at M.D. Anderson Cancer Center.
On July 21, 2015, Fryar was arrested by the U.S. Marshals Lone Star Fugitive Task Force at her family’s lake house in Coke County following the issuance of a bench warrant after she failed to appear in court for a pre-trial hearing earlier in the month.
Fryar faces up to 20 years imprisonment on the wire fraud charge and up to ten years imprisonment for the obstruction charge. She remains in federal custody pending sentencing before United States District Judge Robert A. Junell. Sentencing is scheduled for February 25, 2016..
This investigation was conducted by the Federal Bureau of Investigation, Midland Police Department Fraud Unit and the United States Marshals Service. Assistant United States Attorneys Yvonne Gonzalez and Stanley Serwatka are prosecuting this case on behalf of the Government.
Michigan Man Sentenced to 12.5 Years in Prison for Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Damein Hampton, 38, of Ypsilanti, Michigan, appeared Friday for sentencing in United States District Court in Burlington. United States District Court Judge William K. Sessions III sentenced him to 151 months of incarceration following his guilty plea to Conspiracy to Distribute Cocaine and 280 Grams or More of Cocaine Base.
According to court documents and a series of witnesses at the two-day sentencing hearing, the defendant, aka “Tree,” was accused of being the organizer and manager of a drug conspiracy in Vermont beginning in 2009 and continuing up to his arrest in January 2014. During that time, the defendant trafficked cocaine and cocaine base into Vermont from New York, Michigan, and Arizona, and distributed cocaine, cocaine base, and heroin throughout the Burlington and Newport areas of Vermont. The government accused the defendant of trafficking approximately 2500 grams of crack cocaine, 2050 grams of powder cocaine, and 125 grams of heroin. The defendant estimated that he trafficked approximately 1325 grams of crack cocaine, 1325 grams of powder cocaine, and no heroin.
At sentencing, the government called four witnesses to illustrate the defendant’s drug trafficking activities and his history and characteristics. The witnesses testified that they housed him, stashed his drugs for him, distributed his drugs on his behalf, deposited drug proceeds into his bank account, and trafficked his drugs into Vermont from New York and Michigan. One of the government’s witnesses testified about specific threats of physical violence that he made to her. Government witnesses also testified that the defendant was responsible for a June 7, 2012 shooting on Farrell Street in South Burlington, was the intended victim of a shooting in downtown Burlington on May 5, 2013, and carried a firearm in the center console of his car as a result of a falling out with an associate.
Also at sentencing, the defendant presented competing evidence of the relevant facts. Through the testimony of two defense witnesses and the defendant himself, the defendant admitted to years of serial drug trafficking despite six prior felony convictions for carrying a concealed weapon, robbery, narcotics sale, narcotics possession, and assault, as well as seven misdemeanor convictions. He denied that he was responsible for the Farrell Street shooting and that he used violence or threats of violence to further his trafficking activity.Additionally, the government urged the Court to consider that the defendant absconded from Michigan and remained a fugitive for a period of months while he continued to sell drugs in Schenectedy, New York. This followed on the heels of learning that the U.S. Drug Enforcement Administration was investigating him, had arrested his co-conspirators in transit from Michigan to Vermont with 163.6 grams of his crack cocaine and 52.5 grams of his powder cocaine, and was interested in the defendant’s cooperation.
In fashioning its 12.5 year sentence, the Court stated that it took into account the defendant’s criminal history, the facts of the case as he found them, and the defendant’s background and personal history.
Damein Hampton was represented by Attorney Mark Kaplan. The prosecutors were Assistant U.S. Attorneys Abigail Averbach and William Darrow. The United States Attorney expresses his gratitude to the U.S. Drug Enforcement Administration, the Burlington Police Department, the Milton Police Department, and the South Burlington Police Department for their excellent investigative work and assistance with this case.
Methamphetamine Distribution Conspirators SentencedRead the Press Release
FORT WORTH, Texas — Three defendants who admitted to felony offenses stemming from their role in a methamphetamine distribution conspiracy that operated in the Dallas – Fort Worth (DFW) area since 2013, were sentenced yesterday to substantial prison sentences by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney John Parker of the Northern District of Texas.
Samuel Hebert, 32, was sentenced to 240 months in federal prison. Joseph Sutton, also 32, was sentenced to 140 months in federal prison, and Steven Villegas, also 32, was sentenced to 120 months in federal prison. Each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. All three are from the DFW area.
According to documents filed in the case, since 2013, Hebert supplied ounce and multi-ounce quantities of methamphetamine to others on consignment. Sutton and Villegas received ounce and multi-ounce quantities of methamphetamine on consignment and in turn distributed it to various customers in the Fort Worth and North Richland Hills, Texas, areas, returning to their suppliers for additional methamphetamine.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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