Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 9 December 2015
Member of Young Melph Mafia (YMM) Neighborhood Gang Sentenced to 40 Years for Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JACOBI BOYD, age 24, of New Orleans, was sentenced today for his participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.”
U.S. District Judge Kurt D. Engelhardt sentenced BOYD to 480 months (40 years) of imprisonment, to be followed by five years of supervised release. BOYD was sentenced to 480 months as to count 1 (the drug conspiracy) and 240 months to count 2 (a conspiracy to possesses firearms in furtherance of drug trafficking crimes), with the amounts to run concurrently.
BOYD was originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, BOYD and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting. He is the sixth member of the YMM to be sentenced thus far. The remaining defendants have been charged in a superseding indictment with additionally conspiring to commit RICO violations, including several murders and other acts of violence.
“This is just another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans,” stated U.S. Attorney Polite. “These local gangs have caused serious harm to the neighborhoods of this City, and the federal government will continue to work with local authorities to bring these individuals to justice.” “Removing BOYD and other Young Melph Mafia gang members from the community has been a top priority for ATF,” said ATF Special Agent in Charge Constance Hester. “The success of this investigation is a direct result of the collaborative efforts between the New Orleans Police Department, the United States Attorney’s Office, and ATF.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.
McComb Doctor Charged in Federal IndictmentRead the Press Release
McComb, Miss - Dr. Lawrence Edsel Stewart, 59, of McComb, has been charged in a 27-count federal indictment with violations of Title 21 USC 841(a)(1) – knowingly and intentionally distributing and dispensing schedule II, III, and IV controlled substances outside the scope of professional medical practice, announced U.S. Attorney Gregory K. Davis and Assistant Special Agent in Charge Daniel Comeaux with the Drug Enforcement Administration - New Orleans Division. The indictment is the result of a complex pharmaceutical drug investigation that began approximately one year ago.
DEA Assistant Special Agent in Charge Daniel Comeaux stated: "Today’s arrest should be a shot across the bow of any would-be drug dealer who wears a lab coat and masquerades as a doctor that DEA, the U.S. Attorney’s Office, and the Mississippi Bureau of Narcotics, along with our local, state and federal counterparts will not tolerate this activity. The citizens of Mississippi deserve better."
Dr. Stewart was arrested in McComb and made his initial appearance in Jackson today before U.S. Magistrate Judge F. Keith Ball. The case has been set for trial on February 1, 2016, before U.S. Senior District Judge David C. Bramlette III.
The maximum penalty for distributing and dispensing a Schedule III substance outside the scope of professional practice (Counts 1-4, 7-11, 13 and 16) is 10 years in prison and a $500,000 fine. The maximum penalty for distributing and dispensing a Schedule IV substance outside the scope of professional practice (Counts 5, 6, 12, 15 & 17) is 5 years in prison and a $250,000.00. The maximum penalty for distributing and dispensing a Schedule II controlled substance outside the scope of professional practice is 20 years in prison and a $1 million fine.
This case was investigated by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Mississippi Medical Board, and Mississippi Board of Nursing. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
The public is reminded that an indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws. A defendant is presumed innocent until proven guilty.
Massachusetts Man Charged with Attempted Coercion and Enticement of Minors in LathamRead the Press Release
ALBANY, NEW YORK – Albert Reardon, age 74, of North Adams, Massachusetts, was indicted today on charges of attempted coercion and enticement of a minor for prohibited sexual activity, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Reardon faces at least 10 years and up to life in prison. He also faces a term of supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender. Reardon was arrested in October on a criminal complaint. At that time he appeared before United States Magistrate Judge Christian F. Hummel, and was detained following a detention hearing on October 27.
According to the Complaint filed on October 22, Reardon posted online advertisements soliciting sexual encounters with a “teen” and “young” person. Following email exchanges with a law enforcement officer acting undercover, Reardon travelled to Latham, New York, to meet at a prearranged time and place with persons he believed to be a 14-year-old boy and his 11-year-old brother.
The charges in the indictment and complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Colonie Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Marion Man Pleads Guilty to Healthcare FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Terry L. Stinnett, 68, of Marion, Illinois, pled guilty in federal court on December 8, 2015, to charges that he engaged in a scheme to steal from a health care program. Sentencing has been set for March 15, 2016. Stinnett will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During his plea hearing, Stinnett admitted that he had submitted false and fraudulent claims in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Stinnett admitted to falsely billing the program between July 1, 2013 and January 31, 2014, when he purportedly rendered personal assistant services to a customer when, in fact, he had not been caring for the customer.
This prosecution is part of the fourth wave of the "Operation Home Alone" initiative announced on June 5, 2014, by United States Attorney Stephen R. Wigginton. The investigation was conducted by the U.S. Department of Health and Human Services - Office of Inspector General, the Illinois State Police - Medicaid Fraud Control Bureau, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Manhattan U.S. Attorney Announces Conviction of Bank Executive for Attempted Sex Trafficking of A Minor and Possession, Distribution, and Transportation of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that CHARLES FAMILETTI, JR., a former Vice-President at HSBC Bank, was convicted Monday evening in Manhattan federal court of attempted sex trafficking of a minor, distribution of child pornography, transportation of child pornography, and possession of child pornography, following a five-day trial before Chief United States District Judge Loretta A. Preska.
U.S. Attorney Preet Bharara said: “In addition to exploiting children through his possession, receipt, and distribution of child pornography, as the jury found, Charles Familetti tried to pay an undercover agent for sex with an 11-year-old child. Thanks to our partners at the FBI, Familetti was arrested before he could personally harm any children. The jury’s verdict should send a message to child predators that their crimes will be investigated and prosecuted to the fullest extent of the law.”
As established by the evidence at trial:
FAMILETTI was arrested in July 2013 following a Federal Bureau of Investigation (“FBI”) sting operation in which he agreed to pay an undercover FBI agent $500 in order to have sexual relations with an 11-year old boy. During that operation, an FBI agent also downloaded several files containing child pornography from FAMILETTI via a publicly available peer-to-peer file sharing network. On July 15, 2013, FAMILETTI met with the undercover agent to confirm the agreement and make the final arrangements to obtain the supposed 11-year old boy. FAMILETTI then took the agent to an ATM, withdrew the money to cover the full $500 fee for the boy, and gave the agent $100 as a down payment. After the meeting, FAMILETTI returned to his apartment in midtown Manhattan to await the boy’s arrival. At the agreed-upon time for the boy to arrive, the FBI instead executed a search warrant at FAMILETTI’s apartment. While executing the search warrant, the FBI located an SD card containing over 2,000 image files and over 500 video files of child pornography hidden inside a loaf of bread in FAMILETTI’s refrigerator. It was further established at trial that FAMILETTI carried the SD card with him when he traveled.
FAMILETTI, 48, of San Francisco, California, is set to be sentenced on March 15, 2016, before Judge Preska. FAMILETTI faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison on the attempted sex trafficking of a minor charge. FAMILETTI faces a mandatory minimum term of five years in prison and a maximum sentence of 20 years in prison on each of the distribution and transportation of child pornography charges. FAMILETTI faces a maximum sentence of 20 years in prison on the possession of child pornography charge.
The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.
Mr. Bharara praised the outstanding efforts of the FBI.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Patrick Egan, Jessica Fender, and Sarah Krissoff are in charge of the prosecution.
The FBI encourages the public to report suspected child predators and any suspicious activity through their switchboard at (212) 384 -1000. It is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
Lyle “Ty” Hoffman Sentenced to 57 Months in Federal Prison After Pleading Guilty to Armed Bank RobberyRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of LYLE HOFFMAN a/k/a “Ty,” 45, to 57 months in prison. HOFFMAN pleaded guilty on July 8, 2015, to armed bank robbery at a Blaine TCF Bank branch. The defendant was sentenced today by United States District Court Judge Richard H. Kyle in U.S. District Court in St. Paul, Minn.
According to the defendant’s guilty plea and documents filed in court, on August 11, 2014 HOFFMAN, murdered his former partner, Kelly Phillips, at a gas station in Arden Hills, Minn. While on the run from authorities, on August 31, 2014, HOFFMAN, shielded by a blue baseball cap and sunglasses, robbed a TCF Bank branch located on County Road 10 in Blaine, Minn. The defendant ordered a bank teller to give him money, before removing a handgun from his backpack and pointing it at the teller while he repeated his demand. The teller gave HOFFMAN approximately $12,020 during the robbery, included a packet of money containing a dye pack.
According to the defendant’s guilty plea and documents filed in court, reports were made to law enforcement that HOFFMAN was in Prior Lake, Minn., and had been spotted at various casinos. Following up on those tips, law enforcement collected dye-stained money from casinos in Prior Lake and from a transit machine at the Mall of America. The defendant was arrested on September 11, 2014, after walking through the drive-thru lawn of an Arby’s restaurant in Shakopee, Minn. HOFFMAN had more than $3,000 in dye-stained money on him when he was arrested.
The case was the result of an investigation conducted by the Federal Bureau of Investigation and the Blaine Police Department.
This case was prosecuted by Assistant U.S. Attorney Kevin Ueland.
Defendant Information:
LYLE “TY” HOFFMAN, 45
St. Cloud, Minn.
Convicted:
- Armed bank robbery, one count
Sentenced:
-
57 months in prison
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Louisville Resident and Former Volunteer Football Coach Sentenced to 87 Months in Prison for Child Pornography ChargesRead the Press Release
LOUISVILLE, Ky. – A Louisville resident and former volunteer football coach at Jefferson County Catholic schools was sentenced today in U.S. District Court by Senior Judge Thomas B. Russell to 87 months in prison, followed by 10 years of supervised release, for child pornography charges, announced U.S. Attorney John E. Kuhn, Jr.
Raymond A. Nowacki, age 51, pleaded guilty on July 27, 2015, to a two-count federal indictment charging him with possessing and transporting child pornography by way of a computer. Nowacki remains in the custody of the U.S. Marshals Service.
According to the plea agreement, On November 24, 2013 a Task Force Officer with the FBI was investigating Kentucky computers that were actively sharing previously-identified child pornography on the Internet. The IP address was tracked to Nowacki’s Louisville residence. On October 31, 2014, the FBI executed a search warrant at Nowacki’s residence and seized a laptop computer. A forensic review of the laptop revealed several images and videos of child pornography. At the time, Nowacki admitted to downloading child pornography and watching videos of child pornography on his laptop computer. Further, Nowacki admitted that he conducted searches for “teenaged boys” and “teenaged girls” and had been interested in pornography since 2000.
This case was investigated by Assistant United States Attorney A. Spencer McKiness and was investigated by the Federal Bureau of Investigation (FBI) and Louisville Metro Police.
Local Man Sentenced for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old resident of Corpus Christi has been ordered to federal prison for more than 15 years following his conviction for distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Rogelio Jesus Martinez, 22, pleaded guilty March 3, 2014.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Martinez to 188 months in federal prison. He will also spend the rest of his life on supervised release and will be ordered to register as a sex offender.
In February 2013, authorities with the Corpus Christi Police Department, while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Martinez. As a result of this information, Homeland Security Investigations was contacted to assist in the investigation.
In March 2013, law enforcement executed a search warrant at Martinez’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed 21 videos and on image of child pornography. The material depicted prepubescent children including infants. Martinez admitted to downloading and sharing child pornography through a file sharing program on his computer.
Martinez was ordered into custody and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Martinez were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lawrence Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
BOSTON – Angel Ortiz, 31, of Lawrence, pleaded guilty to one count of dealing in firearms without a license and five counts of being a felon in possession of firearms and ammunition. U.S. District Court Judge F. Dennis Saylor, IV, scheduled sentencing for Feb. 29, 2016.
Ortiz, who had previously been convicted of a felony offense, was involved in the sale of six firearms to a cooperating witness on five occasions between June 10, 2014 and July 23, 2014. On some occasions, Ortiz also provided ammunition for the weapons. It is a federal crime for a convicted felon to possess a firearm or ammunition and also a federal crime to sell firearms without a license.
The charge of dealing firearms without a license provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Robert E. Richardson of Ortiz’s Major Crimes Unit.
Lame Deer Man Convicted of RapeRead the Press Release
BILLINGS – Following a two day federal trial, a Montana jury found Olaf James Haugen, 29, of Lame Deer, guilty of aggravated sexual abuse on Tuesday. Judge Susan Watters presided over the trial. A date for sentencing has not been set.
Haugen was indicted by a grand jury in January on the single count of aggravated sexual abuse. At trial, the government introduced evidence that Haugen physically and sexually assaulted the victim in August of 2013. A dispute started when the victim confronted Haugen about his drug abuse. Haugen became angry. He threatened to kill the victim with a pocket knife, raped her, hit her several times and bit her on the back. The assault started on the evening of August 31 and continued into the next morning.
The assault was heard by an individual in the adjoining room, but was not reported by that individual. Later, another individual came to the house and overheard the assault continuing. She reported the assault to the BIA and an officer responded to the scene. When the officer arrived, the victim opened a window and asked the officer to help her because Haugen was beating her up. Haugen initially refused to allow the officer into the room and threatened to stab himself, but eventually calmed down and was arrested.
The victim was examined by Indian Health Services after the assault. Her injuries included abrasions and contusions consistent with being struck, a large bite mark on her back and an abrasion on her throat consistent with having a knife held against it. The victim did not initially disclose the rape but was convinced by a family member to do so and reported the rape two days later. Haugen claimed the intercourse was consensual but gave conflicting accounts of the incident at trial and to investigating officers following his arrest.
The case was prosecuted by Assistant U.S. Attorney John Sullivan. The case was investigated by the FBI and the Bureau of Indian Affairs.
Ketchikan Residents Guilty of Scheme to Illegally Fish and Sell HalibutRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that on December 8, 2015, Michael Anthony Welker, 52, Shane Christopher Widmyer, 34, David Alan Vest, 39, all residents of Ketchikan, Alaska, pled guilty in federal court in Juneau to violating the Lacey Act by illegally transporting halibut that was caught for subsistence and sport purposes.
Each defendant pled guilty to a single count of a Lacey Act violation before United States Magistrate Judge Leslie Longenbaugh.
According to the information presented to the court by Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, Donald Ray Thornlow, 66, the former owner and operator of the former Narrows Inn and Restaurant in Ketchikan, Alaska, took part in a continuing scheme of knowingly purchasing subsistence and sport caught halibut for resale in his restaurant, a violation of federal regulations. Defendants Welker, Widmyer, and Vest illegally harvested halibut for a commercial purpose using sport fishing licenses and subsistence halibut permits. The defendants subsequently transported the illegally caught halibut and sold it to Thornlow who then sold the fish in his restaurant. The defendants were not allowed to catch halibut for a commercial purpose because none of the defendants possessed a valid Individual Fishing Quota (IFQ) permit. The defendants each admitted to transporting a portion of the 997 pounds of illegally-caught halibut sold by Thornlow in his restaurant from January 2012 to December 2013. Under the terms of the plea agreement, Vest will pay a $5,000 fine, Welker and Widmyer will pay a $3,500 fine and all defendants will be sentenced to a term of probation for three years. Thornlow was previously sentenced to a one year term of probation starting on October 19, 2015, and ordered to pay a $5,000 fine.
Prior to imposing the sentences, Magistrate Judge Longenbaugh indicated the seriousness of the offense and the need to deter the defendants and others, as well as the need to protect Alaska fishery resources.
The National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division conducted the investigation leading to the charges and conviction in this case.
KC Man Convicted of Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been convicted, following a bench trial, of robbing Commerce Bank.
David E. Clark, 36, of Kansas City, was found guilty of bank robbery following a trial on Monday, Dec. 8, 2015, before U.S. District Judge Gary A. Fenner.
Clark was indicted by a federal grand jury for stealing $3,037 from Commerce Bank, 118 W. 47th Street, Kansas City, on July 28, 2014.
Clark was wearing an orange construction-type vest when he entered the bank, walked directly towards a teller station and grabbed a note from his pocket. The teller refused to look at the note and asked Clark if he needed help. Clark told the teller to pull out his drawers. When the teller told him the teller drawers were locked, Clark instructed him to get the keys. The teller returned to his teller station, and Clark told him to “give me 100’s, 50’s and 20’s.” The teller grabbed the requested denominations from his teller drawer and gave the money to Clark, who walked swiftly out of the bank’s front door and then ran up Wyandotte Street.
Another bank employee saw Clark go around the corner and then exit a parking garage in a white truck with a concrete company’s sign on the side. Less than half an hour later, police officers located Clark and arrested him.
According to court documents, the owner of the truck told law enforcement investigators afterward that he had driven the vehicle to a meeting earlier that day and offered a ride to Clark, who had done work as an independent contractor for his company. After his meeting he was supposed to take Clark to another location, but when he returned to the parking lot after his meeting, both Clark and his truck were gone.
Under federal statutes, Clark is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Settlement Successfully Releases More than $115 Million in Alleged Corruption Proceeds to People in KazakhstanRead the Press Release
Today, the Department of Justice filed a motion to dismiss a forfeiture action against approximately $115 million alleged to be proceeds of foreign official corruption and involved in money laundering in accordance with a 2007 settlement that directed the funds to be used for the benefit of poor youth and families in Kazakhstan, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
The filing marked the formal completion of the settlement terms through which the governments of the United States, Switzerland and Kazakhstan agreed to release the alleged corruption proceeds in installments to a Kazakh foundation established under the guidance and supervision of the World Bank Group and administered by international development organizations IREX and Save the Children, which managed the foundation’s programs.
In 2007, the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office of the Southern District of New York filed a forfeiture action against approximately $84 million plus interest that had been restrained in Switzerland in 1999 in connection with the prosecution of James H. Giffen and his company, Mercator, by the U.S. Attorney’s Office and the Criminal Division’s Fraud Section. The funds were allegedly the proceeds of illegal bribe payments to senior Kazakh officials in exchange for oil transactions and property involved in money laundering. In an apparent attempt to evade criminal investigation, the funds had been transferred into an account in the name of the government of Kazakhstan where they were later restrained and grew to $115,228,671. Contemporaneous with the forfeiture action, the United States and Kazakhstan filed the settlement agreement, which incorporates a series of international agreements authorizing the release of the funds to the BOTA Foundation, a new Kazakh foundation required to be independent of the government of Kazakhstan, managed by a respected international non-governmental organization and established with the assistance of the World Bank. In addition, the government of Kazakhstan entered into technical assistance agreements with the World Bank regarding its participation in the Extractive Industries Transparency Initiative and a Public Finance Management Review.
“Transparent, responsible repatriation of corruption proceeds can make a real difference for communities harmed by the abuse of public office,” said Assistant Attorney General Caldwell. “In just five years of operations, the BOTA Foundation helped more than 208,000 people in need in Kazakhstan, turning more than $115 million in alleged bribe money into assistance to parents, families with disabled children and youth seeking higher education. Through our Kleptocracy Asset Recovery Initiative, the Department of Justice is committed to fighting back against impunity and seeking creative ways to reduce the harms caused by corruption.”
Under the 2007 agreements, the parties released more than $115 million to the BOTA Foundation for programs running from 2009 through 2014. The BOTA Foundation utilized the funds in three primary programs, each targeting needs of poor youth in Kazakhstan: a conditional cash transfer program providing financial resources and incentives for health and other needs, a social services program providing grants to local communities and a tuition assistance grant program.
Partnership with the governments of Switzerland and Kazakhstan and close collaboration with the World Bank, program managers IREX and Save the Children, the BOTA Foundation’s Board of Directors, the State Department and USAID were essential to the success of the settlement. Deputy Assistant Attorney General Bruce Swartz of the Criminal Division, Principal Assistant Deputy Chief Daniel Claman of AFMLS and Assistant U.S. Attorney Barbara Ward of the District of New Jersey negotiated and implemented the agreement on behalf of the United States. The Criminal Division’s Office of International Assistance provided assistance in this case. The FBI investigated the matter.
Under the Kleptocracy Asset Recovery Initiative, dedicated prosecutors in AFMLS work in partnership with U.S. Attorneys’ Offices and federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where possible and appropriate, put forfeited corruption proceeds to use for the benefit of the people of the country harmed by the abuse of public office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Houston Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BAKEER RASHED, JR., age 33, of Houston was sentenced today after having pled guilty to one count of conspiring to distribute 500 grams or more of cocaine hydrochloride.
U.S. District Judge Ivan L.R. Lemelle sentenced RASHED to served 66 months incarceration, to be followed by 4 years of supervised release, and was ordered to pay a $100 special assessment.
According to the factual basis filed in open court, RASHED conspired to distribute more than 500 grams of cocaine hydrochloride from July 25, 2006, through February 19, 2007, with co-conspirators living in Louisiana. RASHED, who lived in Houston, was the point of contact for facilitating numerous drug deals.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the assistance of the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.
Hot Springs Woman Found Not GuiltyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Hot Springs, South Dakota, woman, Rebecca Sotherland, was found not guilty on December 8, 2015, of Deprivation of Rights Under Color of Law, Assault With a Dangerous Weapon, and Obstruction of a Federal Investigation after a federal jury trial in Rapid City. Sotherland was indicted on August 26, 2014.
The charges relate to an incident on August 15, 2014, at Manderson, when Sotherland, who was at the time an Oglala Sioux Tribe police officer, was arresting a man, in the course of which she repeatedly used her Taser.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Sarah Collins, Kevin Koliner, and Jared Fishman prosecuted the case.
Harrison County, West Virginia students engage in interactive substance abuse educationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Students in Harrison County, West Virginia, had the opportunity to learn about drug abuse and prevention in a dynamic environment outside of the classroom this week, United States Attorney William J. Ihlenfeld, II, announced.
Seventh and tenth grade students at Liberty High School, Robert C. Byrd High School, Lincoln High School, South Harrison High School, Mountaineer Middle School, Lincoln Middle School, and South Harrison Middle School participated in a new prevention initiative known as “Drug Prevention On The Move!” The centerpiece of the “On The Move!” program is a unique, interactive mobile classroom trailer where students learn about a variety of drugs and their effects on the body and brain. Students answer questions electronically, providing useful insight into their perceptions of various drugs. The students also experience a go-kart and other dynamic technology designed to simulate the effects of impaired and distracted driving.
“To loosen the unforgiving grip of addiction in our region, we must find creative solutions that complement and enhance traditional law enforcement efforts,” said Ihlenfeld. “Empowering young people to make informed decisions based on honest and straightforward education about illegal drugs helps reduce the demand for these illicit substances. I am proud to join Harrison County Schools to promote programs that position students to have healthy and productive futures.”
The “On The Move!” program is an initiative of Operation UNITE, a non-profit organization based in London, Kentucky. Operation UNITE works to rid communities of illegal drug use through undercover investigations, treatment, support, and education. The educational trailer is also provided in partnership with the United States Health Resources and Services Administration and the Appalachia High Intensity Drug Trafficking Area, an initiative of the White House Office of National Drug Control Policy.
Education and prevention professionals interested in obtaining additional information or scheduling the “On The Move!” initiative in their school district are encouraged to contact Tara Tighe at the United States Attorney’s Office at (304) 234-0100.
Gardner Woman Sentenced for Fraudulently Receiving Disability Benefits and Food StampsRead the Press Release
BOSTON – A Gardner, Mass. woman was sentenced today in U.S. District Court in Worcester for fraudulently receiving over $100,000 in public benefits.
Heidi Narcisse, 46, was sentenced by U.S. District Judge Timothy S. Hillman to three years of probation and ordered to pay $117,524 in restitution. Narcisse pleaded guilty in September 2015.
Narcisse began collecting Social Security Supplemental Security Income (SSI) disability benefits in 1999 and Supplemental Nutrition Assistance Program (SNAP) benefits in 2011. In order to be eligible for these benefits, a person must have very limited income and financial resources; furthermore, income provided by a spouse can make a person ineligible for benefits. In order to receive these benefits, Narcisse repeatedly and falsely stated that she was separated from her husband, lived alone with her children and had no outside support.
In reality, in July 2006, Narcisse and her husband bought a house together in Gardner using a subsidized government loan, listed that house as their residential address on their respective driver’s licenses and filed joint tax returns listing the same address. In addition, Narcisse’s husband, who had income from his job, regularly gave Narcisse money for household expenses. If Narcisse had truthfully reported her living situation and her husband’s financial support, she would not have been eligible to receive the SSI and SNAP benefits. From 2006 to 2014, Narcisse illegally received $100,512 in SSI benefits, and from 2011 to 2015 she received $17,012 in SNAP benefits. The investigation also revealed that Narcisse spent a portion of this money at a casino in Connecticut.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Massachusetts State Auditor Suzanne M. Bump, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Gang Member Gets Nearly 10 Years for Possessing FirearmRead the Press Release
CORPUS CHRISTI, Texas – A four-time convicted felon has been ordered to federal prison following his conviction of unlawfully possessing a firearm, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Antonio Ortiz III, 32, of Corpus Christi, in January 2015.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Ortiz to 115 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, Judge Jack noted that his repeated violent conduct was an indication that past punishments had not made an impression.
Ortiz was a known member of the Texas Syndicate Prison Gang and had an outstanding state warrant for a drug distribution charge. In October 2014, deputies from the U.S. Marshals Service assigned to the Gulf Coast Violent Offenders and Fugitive Task Force learned he was staying with a girlfriend at an apartment complex in Corpus Christi and subsequently took him into custody.
At the time of his arrest, authorities discovered a loaded 9mm pistol beneath his bed. Also discovered in the apartment were two separate bundles of ammunition.
During the trial, the jury heard that while in custody following his arrest, Ortiz made phone calls to his friend discussing the location of that gun. In those calls, Ortiz can be heard berated his friend for not having hidden the gun better before his arrest.
Ortiz will remain in custody pending transfer to U.S. Bureau of Prisons facilities to be determined in the near future.
This charge was the result of an investigation conducted by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael Hess is prosecuting the case.
Frederickton, Missouri Man Sentenced on Federal Weapons ChargesRead the Press Release
St. Louis, MO – JASON THOMAS MILLS, Frederickton, MO, was sentenced to 180 months in federal prison on two counts of being a felon in possession of a firearm.
On July 12, 2014, deputies with the Franklin County Sheriff’s Office became aware that Mills was keeping a stolen truck at his residence. The deputies went to the residence and saw the stolen truck. Shortly thereafter, Mills arrived in another vehicle and the deputies approached him. Mills attempted to drive away, while the deputies clung to the doors of the vehicle. When one of the deputies finally pulled the keys from the ignition, Mills exited the vehicle and fled on foot.
Mills ultimately turned, faced the deputies, and stated, “I’m going to shoot you.” The deputies wrestled Mills to the ground, where they saw a red laser emitting from Mills’ pocket. Mills reached into the pocket, attempting to retrieve a handgun. The deputies removed a Smith & Wesson .380 caliber pistol from Mills’ pocket. A search of the vehicle revealed a digital scale, metal spoons with residue, a baggie containing methamphetamine, a syringe, empty baggies and a plastic bag containing pseudoephedrine pills.
On June 22, 2010, deputies with the Franklin County Sheriff’s Department were engaged in a pursuit of a stolen truck. Mills, the driver of the truck, wrecked the truck and fled on foot. Inside the truck, deputies found methamphetamine lab components, which Mills used to manufacture methamphetamine, and a pouch containing .38 caliber ammunition.
Shortly thereafter, Mills was observed operating another stolen vehicle in Union, Missouri. He fled on foot and was found trying to hide in a nearby bush. A Rossi/Taurus .38 caliber pistol was found in the bush next to Mills. The pistol, possessed by Mills, was loaded with .38 caliber ammunition identical to that found in the stolen truck.
Mills pled guilty in September to two felony counts of being a felon in possession of a firearm. He appeared today for sentencing before United States District Judge Henry E. Autrey.
This case was investigated by the Franklin County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Cristian M. Stevens handled the case for the U.S. Attorney's Office.
Former U.S. State Department Employee Pleads Guilty to Extensive Computer Hacking, Cyberstalking and "Sextortion" SchemeRead the Press Release
A former U.S. State Department employee pleaded guilty today to perpetrating a widespread, international e-mail phishing, computer hacking and cyberstalking scheme against hundreds of victims in the United States and abroad.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
Michael C. Ford, 36, of Atlanta, was indicted by a grand jury in the U.S. District Court for the Northern District of Georgia on Aug. 18, 2015, with nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud. The names of the victims are being withheld from the public to protect their privacy.
Ford pleaded guilty to all charges and admitted that between January 2013 and May 2015, he used various aliases that included “David Anderson” and “John Parsons” and engaged in a widespread, international computer hacking, cyberstalking and “sextortion” campaign designed to force victims to provide Ford with personal information as well as sexually explicit videos of others. Ford targeted young females, some of whom were students at U.S. colleges and universities, with a particular focus on members of sororities and aspiring models.
Ford posed as a member of the fictitious “account deletion team” for a well-known e-mail service provider and sent phishing e-mails to thousands of potential victims, warning them that their e-mail accounts would be deleted if they did not provide their passwords. Ford then hacked into hundreds of e-mail and social media accounts using the passwords collected from his phishing scheme, where he searched for sexually explicit photographs. Once Ford located such photos, he then searched for personal identifying information (PII) about his victims, including their home and work addresses, school and employment information, and names and contact information of family members, among other things.
Ford then used the stolen photos and PII to engage in an ongoing cyberstalking campaign designed to demand additional sexually explicit material and personal information. Ford e-mailed his victims with their stolen photos attached and threatened to release those photos if they did not cede to his demands. Ford repeatedly demanded that victims take sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then send the videos to him.
When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford responded with additional threats. For example, Ford wrote in one e-mail “don’t worry, it’s not like I know where you live,” then sent another e-mail to the same victim with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address. Ford later described the victim’s home to her, stating “I like your red fire escape ladder, easy to climb.” Ford followed through with his threats on several occasions, sending his victims’ sexually explicit photographs to family members and friends.
Ultimately, Ford sent thousands of fraudulent “phishing” email messages to potential victims, successfully hacked into at least 450 online accounts belonging to at least 200 victims, and forwarded to himself at least 1,300 stolen email messages containing thousands of sexually explicit photographs. Ford sent threatening and “sextortionate” online communications to at least 75 victims.
During the relevant time period, Ford was employed by the U.S. Embassy in London. The majority of Ford’s phishing, hacking and cyberstalking activities were conducted from his computer at the U.S. Embassy.
“With nothing more than a computer and a few keystrokes, modern predators like Michael Ford can victimize hundreds of people around the world,” said Assistant Attorney General Caldwell. “While this criminal prosecution may never return the victims’ sense of security, I hope that today’s guilty plea brings them some peace of mind.”
“Ford engaged in an international sextortion campaign,” said U.S. Attorney Horn. “He tormented numerous women by threatening to humiliate them unless they provided him with sexually explicit photos and videos, and in some cases, he followed through on his threats. This case demonstrates the need to be careful in safeguarding personal information and passwords, especially in response to suspicious e-mails.”
“When a public servant in a position of trust commits any form of misconduct, to include federal crimes such as cyberstalking and computer hacking, we vigorously investigate such claims,” said Director Miller. “The Diplomatic Security Service is firmly committed to investigating and working with the Department of Justice, U.S. Attorney’s Office and our other law enforcement partners to investigate criminal allegations and bring those who commit these crimes to justice.”
“The allegations contained in this federal indictment portray an individual consumed with sexually themed cyber-stalking and exploitation as well as an individual who felt he was beyond detection and grasp of authorities,” said Special Agent in Charge Johnson. “The FBI is proud of the role it played in working with our law enforcement partners to bring Mr. Ford in for prosecution.”
U.S. District Judge Eleanor L. Ross of the Northern District of Georgia scheduled Ford’s sentencing hearing for Feb. 16, 2016.
The Diplomatic Security Service and the FBI are investigating the case. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia are prosecuting the case. The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance in this case.
Former U.S. Postal Service Employee Sentenced for Misappropriation of Postal FundsRead the Press Release
BOISE – Virginia Burcham, 43, of Caldwell, Idaho, was sentenced on December 7, 2015, to four years of probation and 200 hours of community service for misappropriating postal funds, U.S. Attorney Wendy J. Olson announced. Chief U.S. Magistrate Judge Ronald E. Bush also ordered Burcham to pay full restitution to the United States Postal Service in the amount of $6,397.07. Burcham pleaded guilty on September 29, 2015.
According to the plea agreement, Burcham was responsible for accepting, depositing, and recording various types of customer payments made at the Greenleaf Post Office. She knowingly and intentionally misappropriated for her own use certain postal funds that came into her possession, care, and control as part of her employment. Specifically, Burcham failed to report certain postage meter sales, bulk mail sales, P.O. Box rental payments, and stamp sales. Burcham then took these unreported postal funds and used them for her personal purposes.
The case was investigated by the United States Postal Service’s Office of Inspector General.
Former Suffolk County Police Chief Indicted on Civil Rights Violation and Obstruction ConspiracyRead the Press Release
A two-count indictment was unsealed today in United States District Court for the Eastern District of New York charging former Suffolk County Police Chief of Department James Burke with assaulting and thereby violating the civil rights of a Smithtown man arrested for breaking into Burke’s department-issued vehicle and stealing his property on December 14, 2012. Burke is also charged with conspiracy to obstruct a federal civil rights investigation into the assault. The indictment was returned by a federal grand jury sitting in Central Islip, New York, on December 8, 2015. The defendant was arrested this morning.
The indictment was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the indictment and court filings, on December 14, 2012, New York State Probation Department and Suffolk County Police Department (SCPD) officers arrested probationer Christopher Loeb at his mother’s home in Smithtown, New York, for a variety of probation violations. During the arrest and search of the Loeb residence, officers discovered a large cache of merchandise stolen from over a dozen vehicles, including an SCPD-issued SUV operated by Burke. Among the items taken from Burke’s SUV was his gun belt, several magazines of ammunition, a box of cigars, a humidor, and a canvas bag that contained toiletries, clothing, and other items.
Burke was permitted to enter the Loeb residence and retrieve the canvas bag and several other articles, even as the search was underway. He then drove to the SCPD’s Fourth Precinct in Smithtown where detectives had begun interrogating Loeb. Burke entered the interrogation room where Loeb was handcuffed and chained to an eyebolt fastened to the floor. Burke then allegedly punched and kicked Loeb in the head and body.
Subsequently, Burke and others allegedly pressured the detectives who witnessed the assault to conceal the event. Those efforts continued even after the FBI and the U.S. Attorney’s Office opened an investigation of the assault in May 2013. In one instance, Burke summoned detectives under his command to SCPD headquarters in Yaphank, New York, to persuade the detectives to agree on a false version of events that would conceal the assault. In October 2013, one of those detectives allegedly testified falsely under oath in a state pretrial hearing in the Loeb prosecution, denying that Loeb had been assaulted.
“We entrust our law enforcement officials with the tremendous responsibility to uphold the Constitution and protect the communities they serve as they enforce the law. Wearing a badge is a privilege and honor – not a license to exact retribution and corrupt the administration of justice,” stated United States Attorney Capers. “We will protect the rights of all no matter where the evidence may lead, and those who break the law will be held to account regardless of their rank and status.”
“Today, former Suffolk County Police Chief James Burke finds himself on the opposite end of the very laws he was sworn to uphold. When caught at a crossroads between right and wrong, Burke took a shortcut on the path to justice. When an officer’s actions threaten to obstruct the integrity of an investigation, they unjustly call into question the reputation of those among them who respectfully adhere to the code of ethics so valued by the law enforcement community. We vow never to forget our obligation to remove from the criminal justice system those who don’t uphold the tenets of the legal system,” stated FBI Assistant Director-in-Charge Rodriguez.
The defendant is scheduled to be arraigned this afternoon before United States District Judge Leonard D. Wexler at the federal courthouse in Central Islip. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys James Miskiewicz and Lara Treinis Gatz are in charge of the prosecution, assisted by EDNY Investigators William Hessle, Michael Cassidy, and Steven Kaplan.
The Defendant:
JAMES BURKE
Age: 51
Smithtown, New YorkE.D.N.Y. Docket No. 15-CR-627(LDW)
Former State Department Employee Pleads Guilty to Computer Hacking and Sexual Extortion of WomenRead the Press Release
ATLANTA – Michael C. Ford, a former U.S. State Department employee, has pleaded guilty to perpetrating a widespread, international e-mail phishing, computer hacking, and cyberstalking scheme against hundreds of women in the United States and abroad. Using e-mail passwords obtained by phishing, he hacked into hundreds of victims’ e-mail and social media accounts, stole thousands of sexually explicit photographs, and threatened at least 75 victims that he would release their photos and other personal information unless they agreed to his “sextortionate” demands.
“Ford engaged in an international sextortion campaign,” said U.S. Attorney John Horn. “He tormented numerous women by threatening to humiliate them unless they provided him with sexually explicit photos and videos, and in some cases, he followed through on his threats. This case demonstrates the need to be careful in safeguarding personal information and passwords, especially in response to suspicious e-mails.”
“With nothing more than a computer and a few keystrokes, modern predators like Michael Ford can victimize hundreds of people around the world,” said Assistant Attorney General Caldwell. “While this criminal prosecution may never return the victims’ sense of security, I hope that today’s guilty plea brings them some peace of mind.”
“The allegations contained in this federal indictment portray an individual consumed with sexually themed cyber-stalking and exploitation as well as an individual who felt he was beyond detection and grasp of authorities. The FBI is proud of the role it played in working with our law enforcement partners to bring Mr. Ford in for prosecution,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“When a public servant in a position of trust commits any form of misconduct, to include federal crimes such as cyberstalking and computer hacking, we vigorously investigate such claims,” said Director Miller. “The Diplomatic Security Service is firmly committed to investigating and working with the Department of Justice, U.S. Attorney’s Office and our other law enforcement partners to investigate criminal allegations and bring those who commit these crimes to justice.”
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2013 and May 2015, he used various aliases that included “David Anderson” and “John Parsons” and engaged in a widespread, international computer hacking, cyberstalking and “sextortion” campaign designed to force victims to provide Ford with personal information as well as sexually explicit videos of others. Ford targeted young females, some of whom were students at U.S. colleges and universities, with a particular focus on members of sororities and aspiring models.
Ford posed as a member of the fictitious “account deletion team” for a well-known e-mail service provider and sent phishing e-mails to thousands of potential victims, warning them that their e-mail accounts would be deleted if they did not provide their passwords. Ford then hacked into hundreds of e-mail and social media accounts using the passwords collected from his phishing scheme, where he searched for sexually explicit photographs. Once Ford located the photos, he then searched for personal identifying information (PII) about his victims, including their home and work addresses, school and employment information, and names and contact information of family members, among other things.
Ford then used the stolen photos and PII to engage in an ongoing cyberstalking campaign designed to demand additional sexually explicit material and personal information. Ford e-mailed his victims with their stolen photos attached and threatened to release those photos if they did not cede to his demands. Ford repeatedly demanded that victims take sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then send the videos to him.
When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford responded with additional threats. For example, Ford wrote in one e-mail “don’t worry, it’s not like I know where you live,” then sent another e-mail to the same victim with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address. Ford later described the victim’s home to her, stating “I like your red fire escape ladder, easy to climb.” Ford followed through with his threats on several occasions, sending his victims’ sexually explicit photographs to family members and friends.
Ultimately, Ford sent thousands of fraudulent “phishing” email messages to potential victims, successfully hacked into at least 450 online accounts belonging to at least 200 victims, and forwarded to himself at least 1,300 stolen email messages containing thousands of sexually explicit photographs. Ford sent threatening and “sextortionate” online communications to at least 75 victims.
During the relevant time period, Ford was employed by the U.S. Embassy in London. The majority of Ford’s phishing, hacking and cyberstalking activities were conducted from his computer at the U.S. Embassy.
Ford was initially charged by criminal complaint and arrested on May 17, 2015 at the Hartsfield-Jackson International Airport in Atlanta, Georgia.
Sentencing for Michael C. Ford, 36, of Atlanta, Georgia, is scheduled for February 16, 2016, before U.S. District Judge Eleanor L. Ross.
The case is being investigated by the U.S. Department of State, Diplomatic Security Service and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia, Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section. Assistance was provided by the Criminal Division’s Office of International Affairs and the U.S. Embassy in London.
Anyone who believes that they are the victim of hacking, cyberstalking, or “sextortion” should contact law enforcement. Resources regarding hacking and other cybercrimes can be found at: https://www.fbi.gov/about-us/investigate/cyber.
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.
Former Razorback Star Pleads Guilty in Oxycodone CaseRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Cedric Cobbs, 34, of Little Rock, pled guilty today to using a communication device to facilitate a drug offense before U.S. District Court Judge D.P. Marshall, Jr. Cobbs is a former Arkansas Razorback star running back who went on to play in the NFL with the New England Patriots and Denver Broncos.
Cobbs was one of 33 people indicted in an oxycodone conspiracy in October 2014. In exchange for the guilty plea, the United States dismissed a count for conspiracy to distribute oxycodone. On Wednesday, Cobbs admitted he sold oxycodone pills to the head of the conspiracy, Charolda Walton. Specifically, on March 16, 2014, in a deal set up by a series of calls and texts, Cobbs delivered oxycodone pills to Walton’s house, where Walton was waiting with a customer to buy the pills. The transaction was observed by law enforcement. According to the facts read in open court, Cobbs also sold oxycodone to Walton on March 15, and dealt with Walton on multiple other occasions.
Use of a communication device to facilitate a drug offense is punishable by up to four years’ imprisonment, a $250,000 fine, and not more than one year supervised release. Sentencing before Judge Marshall is set for July 21, 2016.
The investigation was conducted by the Drug Enforcement Administration, with assistance from several law enforcement agencies including the Little Rock Police Department, the Benton Police Department and the Saline County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Chris Givens.
Former Newtown Police Sergeant Admits Heading Steroid Manufacturing and Distribution ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEVEN SANTUCCI, 39, of Waterbury, pleaded guilty today in Hartford federal court to one count of conspiracy to distribute anabolic steroids and one count of conspiracy to launder monetary instruments.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that SANTUCCI, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation also revealed that certain members of the conspiracy were distributing prescription pills, including oxycodone, as well as cocaine.
SANTUCCI used more than $120,000 in proceeds from the sale of anabolic steroids to wire payments to foreign sellers of ingredients to make liquid anabolic steroids, and to purchase drug packaging materials from domestic companies.
Twelve individuals were charged as a result of the investigation. During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and four long guns.
SANTUCCI is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 3, 2016, at which time he faces a maximum term of imprisonment of 30 years.
SANTUCCI was arrested on April 29, 2015, and is released on a $100,000 bond.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Former Employee of Global Financial Services Company Charged with Unauthorized Access of Supervisor’s Email Account on Approximately 100 OccasionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging KRISTOPHER ROCCHIO with computer fraud, stemming from his repeated unauthorized access of his former supervisor’s email account from at least August 2013 through in or about February 2015. ROCCHIO was arrested this morning, and will be presented in Manhattan federal court before Magistrate Judge Ronald L. Ellis later today.
According to the allegations contained in the criminal complaint[1] unsealed today in Manhattan federal court:
From February 2008 through March 2012, ROCCHIO was employed by a global fixed-income financial services company with an office in New York, New York (the “Company”). While employed by the Company, ROCCHIO had a direct supervisor (the “Supervisor”). During ROCCHIO’s employment, the Supervisor never gave ROCCHIO permission to read the Supervisor’s email account at the Company (the “Supervisor’s Email”), and never knowingly gave ROCCHIO the password to the Supervisor’s Email.
In March of 2012, ROCCHIO left the Company. On or about February 25, 2015, the Supervisor received an email bounce back message to the Supervisor’s Email. The message indicated that an email sent from the Supervisor’s Email could not be delivered (the “Failed Email”). The Supervisor had not personally attempted to send the Failed Email. The Supervisor then checked the sent mail folder of the Supervisor’s Email and noticed two emails in the folder that the Supervisor had not personally sent. One email was the Failed Email. The other email (the “February 25 Email”) was sent to another email address (the “Email Account”). The content of both the Failed Email and the February 25 Email was the same, and included a password-protected attachment that detailed, among other things, the compensation and performance evaluations for numerous employees at the Company. Later that same day, the Supervisor checked the sent mail folder of the Supervisor’s Email again, but both the Failed Email and the February 25 Email had been deleted by someone other than the Supervisor.
FBI agents reviewed records from the Email Account and learned that the subscriber for the Email Account is ROCCHIO. The Email Account contains the February 25 Email. The Email Account also contains an earlier email from the Supervisor’s Email sent on or about December 21, 2013 (the “December 21 Email”). The December 21 Email has an attachment, which is a PowerPoint presentation that contained internal metrics of the Company. Also on or about December 21, 2013, the Email Account forwarded the December 21 Email to an email account associated with ROCCHIO (“Email Account-2”) at another financial services company in New York, New York (“Company-2”). Email Account-2 then forwarded the December 21 Email to another employee at Company-2. Company-2 employed ROCCHIO from May 2013 through July 2015.
Records of remote access to the Supervisor’s Email reveal a number of IP addresses used to access the Supervisor’s Email. Three of the IP addresses – which collectively accessed the Supervisor’s Email at least 79 times – were assigned to ROCCHIO. One of the IP addresses – which accessed the Supervisor’s Email at least 15 times – was assigned to Company-2. One of the IP addresses that accessed the Supervisor’s Email was assigned to a hotel in Chicago, Illinois, where ROCCHIO was staying at the time of the access into the Supervisor’s Email.
* * *
ROCCHIO, 38, of Staten Island, New York, is charged with two counts of computer fraud, in violation of Title 18, United States Code, Section 1030. Each count carries a maximum penalty of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence imposed on the defendant will be determined by the Court.
Mr. Bharara praised the outstanding efforts of the FBI and its New York Cyber Division.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Megan Gaffney is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the descriptions of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Five Charged in Scheme to Commit Marriage FraudRead the Press Release
HOUSTON – A total of five Houston residents have been charged in a seven-count indictment alleging their involvement in a marriage fraud scheme involving Nigerian nationals, announced U.S. Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Immigration and Customs Enforcement - Homeland Security Investigations (ICE-HSI) in Houston. This indictment is the result of a previous indictment charging six defendants, who were all convicted earlier this year.
The indictment was returned under seal Nov. 18, 2015, and unsealed today. Folarin H. Alabi, 33, Justice Daniel, 40, and Ifeoma Adamolekun, 39, all of Houston, were taken into custody today and will make their initial appearances in federal court at 2:00 p.m. this afternoon.
Letrishia A. Andrews, 36, also of Houston, was in state custody on unrelated charges and made her initial appearance in federal court this morning. At that time, U.S. Magistrate Judge Frances Stacy ordered she be detained pending further criminal proceedings.
A final defendant – Charles R. Warren, 43 – is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact ICE-HSI at 281-985-0500.
The five defendants allegedly conspired together in connection with a marriage fraud ring involving arranged “sham” marriages between recruited U.S. citizens and Nigerian nationals. A “sham” marriage is a marriage that is entered into for the primary purpose of circumventing the immigration laws.
“Becoming an American citizen is an honor and a privilege,” said Moskowitz. “Obtaining citizenship through fraud is an affront to every person who has played by the rules and it threatens the integrity of our legal immigration system. ICE-HSI special agents will continue to work with our partners to ensure that those who use criminal and dishonorable means to achieve the most honorable of goals are brought to justice.”
The indictment alleges conspirators would pay U.S. citizens for entering into fraudulent marriages to Nigerian nationals who had originally entered the country on tourist visas. The conspirators would then complete immigration documents and submit them to Citizenship and Immigration Services (CIS) to obtain legal permanent resident status, according to the indictment. As part of the conspiracy, the indictment further alleges they would take staged photographs of themselves as a couple for documentation of an allegedly meaningful relationship. The conspirators also allegedly coached the recruits and/or the Nigerian nationals on what to say when questioned or interviewed by law enforcement or immigration officials about the legitimate nature of the marriages.
The indictment charges all five with conspiracy commit marriage fraud. Alabi, who is charged with recruiting the Nigerian nationals to engage in this conspiracy, is also charged with two counts of aiding and abetting marriage fraud, while Andrews and Warren are each charged with the same allegation. Daniel and Adamolekun were also indicted on one count of committing marriage fraud.
Alabi allegedly recruited Nigerian nationals, including Daniel and Adamolekun, to enter into “sham” marriages with U.S. citizens to ultimately gain lawful permanent status in the Unites States. The indictment further alleges Daniel did knowingly marry Andrews, a U.S. citizen for the for the purpose of evading any provision of the immigration laws of the United States. Similarly, Warren allegedly entered into a sham marriage with Adamolekun, according to the allegations. At the time of this conspiracy, Alabi and Adamolekun were natives and citizens of Nigeria and had entered the U.S. temporarily on non-immigrant visas. Daniel is a lawful permanent resident.
If convicted on any of the counts as charged, each defendant faces up to five years in federal prison and a possible $250,000 fine.
The charges are the result of an investigation by ICE-HSI, Department of Homeland Security (DHS) - Document and Benefit Fraud Task Force, Office of Fraud Detection, CIS Fraud Detection and National Security Directorate and the Department of Agriculture - Office of the Inspector General. Special Assistant U.S. Attorney Rick Bennett is prosecuting the case.
The indictment is a formal accusation of criminal conduct, not evidence.
All defendants are presumed innocent unless convicted through due process of law.Final Two Aryan Brotherhood Associates Sentenced to Federal Prison for Their Roles in Methamphetamine Distribution OperationRead the Press Release
In Waco, a federal district judge sentenced to federal prison the remaining two Aryan Brotherhood (AB) associates convicted of participating in a methamphetamine trafficking conspiracy announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
This afternoon, United States District Judge Walter S. Smith, Jr., sentenced 51–year-old Chris Voerhis (aka “Lurch”) of Moffat, TX, to 168 months imprisonment followed by five years of supervised release and 35–year-old Derrick Cooper (aka “Red”) of Temple, TX, to 84 months imprisonment followed by five years of supervised release. Judge Smith also ordered both defendants to pay a $1,000 fine. On October 8, 2015, both defendants pleaded guilty to one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine.
“These sentences resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
To date, 34 individuals have been sentenced in connection with this investigation to imprisonment ranging from just under two years to 35 years in federal prison.
During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
This case is the result of a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department, Austin Police Department and the United States Marshals Service. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris prosecuted this case on behalf of the Government.
Federal Sex Trafficking Charges Filed Against Two Wichita ResidentsRead the Press Release
WICHITA, KAN. – Federal sex trafficking charges have been filed against two people who live in Wichita, U.S. Attorney Barry Grissom said today.
Martin D. Muldrow, Jr., 36, Wichita Kan., and Breaira S. Bland, 22, Wichita, Kan., are charged with one count of sex trafficking, one count of causing a person to cross state lines for purposes of prostitution, two counts of transporting a person across state lines for prostitution, and one count of traveling from Kansas to Texas for the purpose of prostitution.
Upon conviction, the crimes carry the following penalties:
Sex trafficking by force, fraud or coercion: Not less than 15 years in federal prison and a fine up to $250,000.
Causing a person to cross state lines for prostitution: A maximum penalty of 20 years and a fine up to $250,000.
Transporting a person across state lines for prostitution: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Traveling across state lines for the purpose of prostitution: A maximum penalty of five years and a fine up to $250,000.
The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Jason Hart are prosecuting.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the December 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Lachambra Nadene Buntin. Theft of Mail by Employee. Buntin, 39, of Mounds, Okla., a United States Postal Service employee, is charged with stealing mail on September 8 and October 16, 2015. If convicted, the statutory maximum sentence is five years in prison and a $250,000 fine. The United States Postal Service-Office of Inspector General is the investigating agency.
Jose Anuar Claudio-Ortiz. Reentry of Removed Alien. Claudio-Ortiz, 38, is charged with having returned to the United States unlawfully after being deported in December 2010 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Elton John Fernandes. Possession of AB-Fubinaca with Intent to Distribute and Possession of XLR-11 with Intent to Distribute. Fernandes, 37, of Broken Arrow, is charged with possession with intent to distribute AB-Fubinaca and XLR-11, both drugs are a Schedule I controlled substance. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. In addition, the defendant shall forfeit several firearms. The Drug Enforcement Administration is the investigating agency.
Kaitlin Elizabeth Lemons. Possession of Stolen Mail. Lemons, 30, of Tulsa, is charged with possession of stolen mail. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The United States Postal Inspector is the investigating agency.
Dustin Scott Ross. Bank Robbery and Interference with Commerce by Robbery. Ross, 21, of Fort Gibson, Okla., is charged with robbing an Arvest Bank, on November 4, 2015, and robbing a CVS of OxyContin and Oxycodone on November 19, 2015, both businesses are located in Tulsa. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The Federal Bureau of Investigation is the investigating agency.
###
Federal Court Appoints Receiver to Oversee Affairs of Portales-Based Livestock Auction BusinessRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge has appointed a receiver for High Plains Livestock, LLC (HPL), a livestock auction business located in Portales, N.M. The receiver will be responsible for conducting a review of HPL’s viability and, if viable, will take over all aspects of HPL’s operations.
The court’s order was entered yesterday in a civil case initiated in Aug. 2015, by the United States against HLP, its owner Michael Flen, and its operators Darcie and Calvin Pareo. In its civil complaint, the United States alleged that HLP, Flen and the Pareos were violating the Packers and Stockyards Act (PSA) which outlaws unfair and deceptive practices in the cattle livestock market. According to the civil complaint, HPL operates a stockyard that primarily auctions cows from the dairy industry for a commission; the auctioned cows are sold to buyers who resell the cows for slaughter. HPL allegedly violated the PSA by failing to properly maintain custodial accounts, misusing custodial accounts, failing to maintain accurate records, generating false documents, altering sales documents, and misrepresenting the true purchasers of livestock.The order appointing the receiver was entered in response to the United States’ motion for a preliminary injunction and after a four-day hearing on the motion. According to the order, the court found “overwhelming and uncontroverted evidence of rampant violations of the PSA,” including the altering auction records, known as scale tickets, and falsifying buyer and seller invoices. “A review of the hundreds of scale tickets admitted into evidence that appear altered, the testimony of auction clerks that they do not fix mistakes in this way, and the admission of the Pareos that they altered scale tickets makes it extraordinarily probable that fraudulent conduct has occurred,” the court found. Prices were marked down after auction to benefit the Pareos, and they were sometimes marked up at the expense of the buyer of the cattle. The order noted that at least once, Mr. Pareo even marked a particular cow dead to avoid paying the seller for it, only to turn around and pocket the money he got by sending the live cow to the slaughterhouse.
The order noted that the Pareos compounded their wrongdoing by lying repeatedly to law enforcement to avoid detection. As the court found, “the Pareos demonstrate no remorse for their violations of the PSA and no intent to rectify those deficiencies. Instead, the Pareos have shown an absolute willingness to mislead authorities.”
The court appointed a receiver to, first, audit HPL’s business and determine whether it is viable as an ongoing business. If it is not viable, the court will determine whether a receiver will oversee HPL’s “winding up.” If the receiver determines the business can afford to continue operations, “the receiver will be responsible for overseeing all aspects of HPL’s operations, including all financial decisions, banking, recordkeeping, and regulation compliance.” Meanwhile, “Defendants Calvin and Darcie Pareo and Michael Flen will have no control over the business.”
This case was investigated by the Grain Inspection, Packers and Stockyards Administration of the U.S. Department of Agriculture. Assistant U.S. Attorneys Ruth F. Keegan and Karen F. Grohman are litigating the case on behalf of the United States with assistance from Auditor Julie Chappell.
Federal Charges Filed Against Lawrence Mother Who Fled the Country with Her DaughtersRead the Press Release
KANSAS CITY, KAN. – A Lawrence woman appeared in federal court in Kansas City, Kan., today on federal charges of fleeing to Europe in an effort to avoid losing custody of her two daughters, U.S. Attorney Barry Grissom said.
Samantha Elmer, 33, Lawrence, Kan., is charged with one count of taking her children out of the United States with intent to obstruct the lawful exercise of parental rights. Elmer was arrested Dec. 8 at the airport in Kansas City when she returned with her children.
A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges that on Oct. 26 Elmer and her daughters – one 11 years old and the other nine years old – boarded a flight from O’Hare International Airport in Chicago to Vienna, Austria, via Istanbul, Turkey. A week earlier, Elmer’s ex-husband and father of the two girls had filed for full custody in Johnson County District Court. The court had scheduled a hearing for the first week of November. Elmer also was scheduled for a hearing on felony theft charges in Johnson County District Court.
On Oct. 29, an officer of the Lawrence Police Department went to Elmer’s house in Lawrence to do a child welfare check. Investigators determined that Elmer’s daughters had missed the past six days of school. They learned that Elmer had been driving a rented vehicle and had dropped the vehicle off at O’Hare airport before boarding the flight to Austria.
If convicted, Elmer faces a maximum penalty of three years in federal prison and a fine up to $250,000. The following agencies worked on the investigation: the Lawrence Police Department, the FBI, Homeland Security Investigations, the Douglas County District Attorney’s Office, the Eudora Police Department, the Overland Park Police Department and the Johnson County District Attorney’s Office. Assistant U.S. Attorney Chris Oakley is prosecuting.
Father and Son Arrested for Tonawanda Bank RobberyRead 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 Brandon Loyd, 19, and his father, Duane Loyd, 44, both of Buffalo, NY, were arrested and charged by criminal complaint with bank robbery and related use and possession of a firearm. The bank robbery charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The firearm charge carries a mandatory minimum penalty of five years, a maximum of life and a $250,000 fine. Any penalty imposed for the firearm charge would be served consecutive to any prison term imposed for the bank robbery.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the complaint, on December 7, 2015, at approximately 11:40 a.m., Brandon Loyd walked into the Key Bank located at 4248 Delaware Avenue in Tonawanda, NY. The defendant put a respirator mask over his face, approached the tellers, and demanded money. As he was demanding money, Loyd displayed a firearm and ordered customers in the bank to raise their hands in the air.
The complaint further states that Loyd subsequently fled the bank with a specific amount of money and entered a vehicle driven by his father, Duane Loyd. A police chase ensued, which resulted in the getaway vehicle and a City of Tonawanda Police vehicle colliding. Both Duane and Brandon Loyd fled on foot but were captured shortly thereafter. Police also recovered a disassembled pistol with a magazine containing 12 rounds of ammunition.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Leslie G. Foschio and are being held in custody pending detention hearings on December 10, 2015 at 10:00 a.m. before U.S. Magistrate Judge Hugh B. Scott.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen; the Town of Tonawanda Police Department, under the direction of Jerome C. Uschold, III; the City of Tonawanda Police Department, under the direction of Chief William Strassburg; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Defendant in "Operation Open Market" SentencedRead the Press Release
LAS VEGAS, Nev. – A Miami man has been sentenced to nine years in prison, three years of supervised release, and ordered to pay over $50 million in restitution for his guilty pleas to racketeering and identity theft crimes as part of “Operation Open Market,” announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Daniel G. Bogden of the District of Nevada, and Special Agent in Charge Joseph Macias for HSI Los Angeles, which oversees the agency’s efforts in southern Nevada.
Alexander Kostyukov, aka “Temp”, aka “KLBS,” 30, a resident of Miami at the time of arrest, but originally from Russia, was sentenced on Tues., Dec. 8, 2015, by U.S. District Judge Andrew P. Gordon. Kostyukov pleaded guilty to participation in a racketeer influenced corrupt organization (RICO,) conspiracy to engage in a RICO, and three counts of unlawfully trafficking in and production of counterfeit identification documents. Specifically, Kostyukov was a vendor of “cashout services” in the organization and provided members a way to transfer or launder the funds that they had unlawfully obtained from the stolen bank and credit card accounts. Kostyukov received a fee of between 45% and 62% of the total amount laundered for providing cashout services to a member.
“Millions of dollars and countless amounts of data were stolen from the victims by members of this international conspiracy,” said U.S. Attorney Bogden. “We have now convicted 33 persons, most of who are sitting in federal prison. We will continue to work with our federal and international law enforcement partners to arrest, prosecute and bring to justice the remaining defendants, no matter where they are located.”
“This lengthy sentence, and the significant prison terms imposed on others convicted in connection with in this far-reaching scheme, should serve as a sobering warning about the consequences awaiting those engaged in large-scale financial fraud,” said Special Agent in Charge Macias. “The global organization identified in this case was responsible for harming countless innocent victims and stealing tens of millions of dollars. Working with its enforcement partners, HSI will continue to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”
“Operation Open Market” targeted an organization known as “Carder.su” whose members, also known as “carders,” were involved in large scale trafficking of compromised credit card account data and counterfeit identifications and credit cards, as well as money laundering, narcotics trafficking and various types of computer crime. The organization operated an Internet web portal called a forum, where members could purchase the illicitly obtained data and share knowledge of various fraud schemes. A second forum was also created to vet incoming new members. The forums were generally hosted within the former Soviet Union and the upper echelon of the organization resides within the former Soviet Union. In July 2011, the organization had an estimated 5,500 members. A special agent initiated an undercover investigation called Open Market and assumed the identity as a member of the organization when it was in its infancy.
Members of the organization had different roles, including moderators who directed other members in carrying out activities; reviewers who examined and tested products, services and contraband; vendors who advertised and sold products, services and contraband; and members. Members were required to successfully complete a number of security features designed to protect the organization from infiltration by law enforcement or members of rival criminal organizations.
Fifty-six persons were charged in four separate indictments in Operation Open Market. To date, 33 defendants have been convicted, one is pending trial, and the rest are fugitives.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan, and Trial Attorneys Kelly Pearson and Catherine Dick of the U.S. Department of Justice Organized Crime and Gang Section.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
December Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 5 indictments charging 5 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Khalif Alogba, age 29, of Newport, Minnesota, is charged with use of a counterfeit access device on or about September 3, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Oscar Alonzo Batres, age 43, of Omaha, is charged with illegal reentry into the United States on or about November 16, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Brett Booker, age 21, is charged in a six-count Indictment. Count I of the Indictment charges the defendant with distribution and possession with intent to distribute ethylone, Xanax and marijuana from on or about October 27, 2015 to on or about November 24, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Booker with felon in possession of a firearm on or about November 24, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with user in possession of a firearm on or about November 24, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts IV, V, and VI allege that Booker committed the offenses in Count I, II, and III while released on conditions in a separate case. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the allegations in Court I of this Indictment, should be forfeited to the United States.
* Abraham Gamez, age 43, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment alleges that on or about January 30, 2015, the defendant falsely represented a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges on or about January 30, 2015, Gamez used a Permanent Resident Alien card knowing said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Semiu Shokunbi, age 42, of Kent, United Kingdom, is charged with use of a counterfeit access device on or about October 10, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Chaparral Man Sentenced to Five Years for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Alberto Armendariz, 56, of Chaparral, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 60 months in prison followed by four years of supervised release for his heroin trafficking conviction.
Armendariz was arrested in May 2015, and charged by criminal complaint with possessing heroin with intent to distribute in Doña Ana County, N.M., on May 5, 2015. On that day, the DEA found approximately 299.3 grams of heroin and a shotgun in a Chaparral residence where Armendariz was residing. At the time of his arrest, Armendariz was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
On July 22, 2015, Armendariz pled guilty to a felony information charging him with possession of heroin with intent to distribute. In entering the guilty plea, Armendariz admitted that the heroin seized by the DEA on May 5, 2015 belonged to him and that he intended to sell the drugs to others.
This case was investigated by the Las Cruces office of the DEA. Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Campaign Finance Investigation ConcludedRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia announced today that the investigation into corrupt spending in federal and local political campaigns, including the 2010 mayoral election in the District of Columbia, has concluded.
No additional charges are expected to be filed in the investigation related to the federal and local political campaigns, which uncovered evidence of over $3.3 million in illegal contributions to various campaigns between 2006 and 2011. A total of 12 people pled guilty to charges in the investigation, including seven who pled guilty to offenses directly involving or connected to the 2010 District of Columbia mayoral election.
In a related action, the U.S. Attorney’s Office today filed motions asking judges to begin setting sentencing dates for the seven people who have pled guilty but have yet to be sentenced in the investigation.
In every criminal trial, the government bears the burden of proving a defendant’s guilt beyond a reasonable doubt. Department of Justice policy provides that no prosecution should be initiated against any person unless the government believes that the person probably will be found guilty beyond a reasonable doubt by a jury, sitting as an unbiased trier of fact, and that the jury’s guilty verdict probably will be sustained by a reviewing court. In this investigation, based on a thorough review of the available evidence and applicable law, the U.S. Attorney’s Office has concluded that the admissible evidence is likely insufficient to obtain and sustain a criminal conviction against any other individuals related to the federal and local political campaigns.
The U.S. Attorney’s Office for the District of Columbia worked with the FBI’s Washington Field Office and the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI) on the investigation, which began in 2011. In addition to campaign-related offenses, the investigation uncovered numerous instances of obstructive conduct by several of the defendants, as described further below, to conceal the extent of the wrongdoing.
**
Those who have pleaded guilty to charges involving the mayoral election were the following:
Jeffrey E. Thompson: Thompson pled guilty in March 2014 and admitted taking part in a scheme in which he and his companies, Thompson, Cobb, Bazilio and Associates (TCBA) and D.C. Healthcare Systems, Inc. (DCHSI), secretly channeled more than $3.3 million in illegal contributions to at least 28 political candidates and their campaigns, including candidates for the offices of President of the United States and Mayor of the District of Columbia. In his guilty plea, Thompson admitted, among other things, to secretly channeling more than $668,800 to pay for campaign activities in connection with a mayoral campaign in the 2010 District of Columbia mayoral election.
Eugenia C. Harris: Harris, the owner of two businesses in the District of Columbia, pled guilty in July 2012 and admitted to conspiring to disguise the source of campaign contributions in federal and local elections, including the 2010 District of Columbia mayoral campaign. As part of her guilty plea, she also admitted taking part in steps to conceal the illegal activities, such as causing others to shred and destroy a large volume of paper records maintained by her businesses because they could have revealed the extent of her involvement in the mayoral election.
Vernon Hawkins: Hawkins pled guilty in August 2013 to making a false statement to federal authorities investigating allegations involving the 2010 District of Columbia mayoral campaign. Among other things, Hawkins twice gave cash that he obtained from Harris to persuade a potential witness to leave the area so that he would be unavailable to speak with federal agents.
Mark Long: Long pled guilty in September 2014 to conspiring to defraud the District of Columbia’s Office of Campaign Finance by funding and concealing contributions in excess of those permitted under D.C. campaign finance laws. In his plea, Long admitted that he received payment for campaign-related work during the 2010 District of Columbia mayoral campaign from Harris, who had received the funds from Thompson.
Howard L. Brooks: Brooks pled guilty in May 2012 to making a false statement to federal agents investigating activities in the 2010 District of Columbia mayoral campaign. He was sentenced to probation and community service.
Thomas W. Gore: Gore pled guilty in May 2012 to obstructing justice by destroying records in the federal investigation and making campaign contributions in the name of another person related to the 2010 District of Columbia mayoral campaign. He was sentenced to six months in prison.
Stephanie Reich: Reich pled guilty in August 2015 to a charge of making a false statement to obtain unemployment compensation. The offense involved claims for unemployment compensation that she submitted for a time period in which she was working on the 2010 District of Columbia mayoral campaign. She was sentenced to probation.
**
Those who have pleaded guilty in the broader investigation were the following:
Lee A. Calhoun: Calhoun, an executive for one of Thompson’s companies, pled guilty in June 2013 to a federal charge of knowingly and willfully permitting the name of one or more persons to be used to make campaign contributions in the name of another person and aiding and abetting campaign contributions to be made in the name of another. The offense stemmed from a scheme in which he and others helped disguise that Thompson and Thompson’s company were the actual source of more than $150,000 in contributions to federal, District of Columbia, and other political campaign committees and political action committees.
Stanley Straughter: Straughter, the owner of a business based in Philadelphia, Pa., pled guilty in June 2013 to a federal charge of knowingly and willfully making, and aiding and abetting and causing to be made, unlawful corporate campaign contributions to federal campaigns. The offense stemmed from a scheme in which he and others helped conceal the fact that Thompson and one of Thompson’s companies were the actual source of more than $125,000 in contributions to various federal, state and local campaigns.
Troy White: White, the owner of a marketing company based in New York, pled guilty in September 2013 to a federal tax charge stemming from his failure to file corporate income tax returns, including failing to report more than $600,000 his company received for services it provided in support of a 2008 presidential campaign. He was sentenced to probation.
Kelvin Robinson: Robinson, a former candidate for the Council of the District of Columbia, pled guilty in June 2014 to a charge of conspiring to violate District of Columbia campaign finance laws by defrauding the District of Columbia’s Office of Campaign Finance. The charge involved $33,500 in secret contributions from Thompson to Robinson’s 2010 campaigns for At-Large Member and Ward 6 seats on the Council of the District of Columbia.
Jeff Smith: Smith, a former candidate for the Council of the District of Columbia, pled guilty in June 2014 to filing a false and misleading report with the District of Columbia’s Office of Campaign Finance that concealed campaign contributions in excess of those permitted under D.C. campaign finance laws. The charge involved $140,000 in secret contributions from Thompson to Smith’s 2010 campaign for the Ward 1 seat on the Council of the District of Columbia. Smith was sentenced to 60 days in jail, in addition to community service, probation, and a $10,000 fine.
**
The U.S. Attorney’s Office remains committed to investigating alleged violations of federal and District of Columbia laws governing the financing of political campaigns in addition to all matters involving allegations of public corruption within the local government.
Bollinger Shipyards Agrees to Settle False Claims Act SuitRead the Press Release
Bollinger Shipyards will pay the United States $8.5 million and release contract claims to settle a False Claims Act action filed against it in the Eastern District of Louisiana, the Department of Justice announced today. The False Claims Act suit alleges that Bollinger misrepresented the longitudinal strength of patrol boats it delivered to the Coast Guard that resulted in the boats buckling and failing once they were put into service. Bollinger Shipyards is located in Lockport, Louisiana.
“Those who expect to do business with the government must do so fairly and honestly,” said Principal Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division. “We expect the utmost integrity and reliability from the contractors that design and build equipment that is essential to public safety and our national defense.”
In 2002, the U.S. Coast Guard contracted to lengthen the Coast Guard’s existing fleet of 110-foot patrol boats to 123 feet and to make other modifications. Bollinger was the subcontractor that performed the 123-foot patrol boat design and conversion work. An essential element of the conversion was that the modified boats have sufficient longitudinal strength to meet the performance requirements set forth in the contract. The United States alleged Bollinger provided the Coast Guard with engineering calculations that falsely represented the longitudinal strength of the boats and was two times greater than their actual longitudinal strength. The United States alleged Bollinger ran the calculations three times and only provided the Coast Guard with the highest and most inaccurate, of the three calculations. The United States further alleged Bollinger also failed to follow the quality control procedures that were mandated by the contract that would have ensured against such engineering miscalculations.
The case was handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Louisiana.
The case is captioned United States v. Bollinger Shipyards, et al. Case No. 2:12cv-00920 (E.D. La.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Bollinger Shipyards Agrees to Settle False Claims Act SuitRead the Press Release
WASHINGTON – Bollinger Shipyards will pay the United States $8.5 million and release contract claims to settle a False Claims Act action filed against it in the Eastern District of Louisiana, the Department of Justice announced today. The False Claims Act suit alleges that Bollinger misrepresented the longitudinal strength of patrol boats it delivered to the Coast Guard that resulted in the boats buckling and failing once they were put into service. Bollinger Shipyards is located in Lockport, Louisiana.
“Those who expect to do business with the government must do so fairly and honestly,” said Principal Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division. “We expect the utmost integrity and reliability from the contractors that design and build equipment that is essential to public safety and our national defense.”
In 2002, the U.S. Coast Guard contracted to lengthen the Coast Guard’s existing fleet of 110-foot patrol boats to 123 feet and to make other modifications. Bollinger was the subcontractor that performed the 123-foot patrol boat design and conversion work. An essential element of the conversion was that the modified boats have sufficient longitudinal strength to meet the performance requirements set forth in the contract. The United States alleged Bollinger provided the Coast Guard with engineering calculations that falsely represented the longitudinal strength of the boats and was two times greater than their actual longitudinal strength. The United States alleged Bollinger ran the calculations three times and only provided the Coast Guard with the highest and most inaccurate, of the three calculations. The United States further alleged Bollinger also failed to follow the quality control procedures that were mandated by the contract that would have ensured against such engineering miscalculations.
The case was handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Louisiana.
The case is captioned United States v. Bollinger Shipyards, et al. Case No. 2:12cv-00920 (E.D. La.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Aurora, Illinois, Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
An Aurora, Illinois, man pleaded guilty today to federal charges involving conspiracy to provide material support to a foreign terrorist organization in the Middle East.
Jonas M. Edmonds, 30, pleaded guilty to one count of conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and one count of making a materially false statement to a law enforcement officer regarding an offense involving international terrorism.
The charge was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois and Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Division.
Jonas Edmonds has been detained in federal custody since his arrest on March 25, 2015, by members of the FBI’s Chicago Joint Terrorism Task Force. According to the plea agreement, the defendant and his cousin, Hasan Edmonds, had devised a plan for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. Jonas Edmonds admitted that he expressed his support and excitement for Hasan Edmonds’ travel, believing that anyone who supported a mujahid (a fighter) was a mujahid himself.
According to the plea agreement, Jonas Edmonds intended to carry out an act of terrorism in the United States after Hasan Edmonds had departed for the Middle East. Specifically, in March 2015, the cousins devised a plan for Jonas Edmonds to carry out an armed attack at the U.S. Army National Guard base in Joliet, Illinois, during which time Hasan Edmonds was a member of the Army National Guard and had been training at the Joliet installation. According to the plea agreement, the plan called for Hasan Edmonds to provide military uniforms for Jonas Edmonds to wear during the attack, as well as a list of officers for Jonas Edmonds to kill.
Jonas Edmonds’ sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. Jonas Edmonds faces a maximum sentence of 15 years in prison for the material support charge, and up to eight years in prison for the false statement count. U.S. District Judge John Z. Lee of the Northern District of Illinois scheduled a sentencing hearing for Jan. 27, 2016, at 2:00 p.m. CST.
Hasan Edmonds was charged in a superseding information with one count of conspiring to provide material support to a foreign terrorist organization and one count of attempting to provide material support to a foreign terrorist organization. His next court appearance is scheduled for Dec. 14, 2015, at 11:00 a.m. CST before Judge Lee.
The case is being investigated by the FBI’s Chicago Joint Terrorism Task Force. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Illinois State Police, the Aurora Police Department and the Illinois National Guard also provided significant assistance in the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Barry Jonas and John Kness of the Northern District of Illinois and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Jonas Edmonds Plea Agreement
Aurora Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
CHICAGO — An Aurora man pleaded guilty today to a federal charge that he conspired to provide material support to a foreign terrorist organization in the Middle East.
JONAS M. EDMONDS, 30, pleaded guilty to one count of conspiring to provide material support to a foreign terrorist organization, and one count of making a materially false statement to a law enforcement officer regarding an offense involving international terrorism. The terrorist organization is identified in a written plea agreement as the Islamic State of Iraq and the Levant, commonly referred to as ISIL, ISIS, or the Islamic State.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John P. Carlin, Assistant Attorney General for National Security; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Jonas Edmonds has been detained in federal custody since his arrest in March by members of the Chicago Joint Terrorism Task Force. According to the plea agreement, he and his cousin, HASAN EDMONDS, devised a plan for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. Jonas Edmonds expressed his support and excitement for Hasan Edmonds’ travel, believing that anyone who supported a mujahid (a fighter) was a mujahid himself, the plea agreement states.
According to the plea agreement, Jonas Edmonds intended to carry out an act of terrorism in the United States after Hasan Edmonds had departed for the Middle East. In particular, the cousins devised a plan for Jonas Edmonds to carry out an armed attack at the U.S. Army National Guard base in Joliet. At the time the scheme was hatched in March, Hasan Edmonds was a member of the Army National Guard and had been training at the Joliet installation. The plan called for Hasan Edmonds to provide military uniforms for Jonas Edmonds to wear during the attack, as well as a list of officers for Jonas Edmonds to kill, according to the plea agreement.
Jonas Edmonds, a U.S. citizen from west suburban Aurora, faces a maximum sentence of 15 years for the material support charge, and up to eight years for the false statement count. U.S. District Judge John Z. Lee scheduled a sentencing hearing for Jan. 27, 2016, at 2:00 p.m.
Hasan Edmonds, a U.S. citizen from of Aurora, is charged in a superseding information with one count of conspiring to provide material support to a foreign terrorist organization, and one count of attempting to provide material support to a foreign terrorist organization. His next court appearance is scheduled for Dec. 14, 2015, at 11:00 a.m. before Judge Lee.
The Joint Terrorism Task Force is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Illinois State Police, the Aurora Police Department and the Illinois National Guard provided significant assistance in the investigation.
The government is represented by Assistant United States Attorneys Barry Jonas and John Kness of the Northern District of Illinois; and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Plea Agreement
Armed Robber Admits to Robbing Three Businesses in a WeekRead the Press Release
Baltimore, Maryland – Elbert Darell Crump, age 47, of Towson, Maryland pleaded guilty today to robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on January 14, 2015 Crump entered the Dollar Tree on Joppa Road in Towson, wearing a mask covering part of his face. Crump pointed a semi-automatic handgun at a cashier and demanded money. Crump took cash out of the register drawer, a dollar from a nearby customer, and fled.
On January 20th, Crump entered the Gino’s Burgers and Chicken Restaurant on LaSalle Road in Towson. Crump produced a firearm and demanded money from the employees. When the manager/employee had difficulty opening a cash register, Crump struck the manager in the head with the firearm, knocking him to the ground. Another employee helped the manager open the cash registers and Crump took the cash. A video recording shows Crump pointing the firearm in the direction of some of the customers as well as the employees.
The next day on January 21, 2015, Crump entered the Toys ‘R Us store on Putty Hill Avenue in Towson, wearing a ski mask on his face. Crump pointed a gun at a cashier and demanded money. The cashier ran out the front door. Crump pointed his gun at another employee, forcing the employee to open eight cash registers and put the cash into a bag. During this time, several customers and employees called 911. Police from Baltimore County responded quickly and surrounded the store. Several customers who were inside fled the store and were moved to safety by the police. Crump attempted to leave by the front and then the back of the store, but returned inside once he saw all the police outside.
Baltimore County tactical officers and hostage negotiators arrived. Police were advised by fleeing customers that Crump was armed and that customers remained inside. Crump asked two customers to help him hide and handed them about $400. Crump hid in a large box on a shelf. The customers who received the money left the store, told police where Crump was hiding and gave the police the money. Tactical officers and canine officers subsequently entered the store and located Crump, hiding in a large box on a shelf. A 24 hour search of the store took place before the .380 caliber handgun was located in the baby section inside a bag with $1,650 taken by Crump from all of the registers.
Video recordings of all three robberies identified Crump as the robber. The firearm was registered to Crump’s girlfriend with whom Crump was staying. Clothes worn by Crump during the robberies were found at their residence.
Crump had previously been convicted of at least one crime of violence and one drug offense.
Crump and the government have agreed that if the Court accepts the plea agreement Crump will be sentenced to 20 years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 4, 2016.
United States Attorney Rod J. Rosenstein commended the Baltimore Police Department, FBI and Baltimore County State’s Attorney's Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who is prosecuting the case.
Albuquerque Man Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Randy Martinez, Jr., 20, of Albuquerque, N.M., was arraigned this morning in federal court on an indictment charging him with child pornography offenses. During today’s proceedings, Martinez entered a not guilty plea to the indictment. Martinez was ordered detained pending trial based on a judicial finding that he poses a danger to the community.
Martinez was charged on Nov. 17, 2015, in a five-count indictment with advertisement, receipt and possession of visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Martinez published an advertisement in which he offered to distribute and exchange child pornography from Aug. 9, 2015 through Aug. 17, 2015, and received child pornography on Aug. 9, 2015. The indictment also alleges that Martinez possessed child pornography from Nov. 5, 2014 through Aug. 17, 2015. Martinez allegedly committed the crimes in Bernalillo County, N.M.
According to court filings, the investigation into this case was initiated after the National Center for Missing and Exploited Children (NCMEC) received a cryptic Cybertip on Aug. 17, 2015, in which the sender reported himself for offenses involving the online sexual exploitation of children. After the tip was forwarded to law enforcement authorities in New Mexico, investigation by the Bernalillo County Sheriff’s Office determined the address the tip was sent from and later identified Martinez as the sender of the Cybertip. Thereafter, law enforcement authorities executed a search warrant on Martinez’s phone and allegedly found nearly 3,000 files containing child pornography on the phone. Further investigation allegedly revealed that Martinez also possessed two online cloud storage accounts containing over 5,000 child pornography videos and images.
The search of Martinez’s phone also allegedly revealed that he was an active participant in an online messaging application community devoted to advertising and trading child pornography. Martinez allegedly used this messaging application to receive and share child pornography with other members of the messaging community. The continuing investigation has led to the identification of approximately 70 unique users who allegedly engaged in trading images and videos depicting the sexual exploitation of children, both in the United States and abroad.
Martinez was arrested on Dec. 7, 2015, on the federal warrant. Prior to his arrest, Martinez was in state custody on the related state charges that were dismissed in favor of federal prosecution.
The statutory penalty upon conviction on the advertisement of child pornography charge is a mandatory minimum of 15 years and a maximum of 30 years in federal prison. The penalty upon conviction on the receipt charge is a mandatory minimum of five years and a maximum of 20 years in federal prison, and the penalty upon conviction on the three possession charges is a maximum of 20 years in federal prison. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Bernalillo County Sheriff’s Office, Albuquerque office of the FBI and the New Mexico Office of the Attorney General with assistance from the New Mexico Regional Computer Forensics Laboratory, all of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
Assistant U.S. Attorney Sarah Mease is prosecuting the case 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/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Akron man indicted for soliciting the murder of members of the U.S. militaryRead the Press Release
A six-count indictment was filed today charging an Akron man for soliciting the murder of members of the U.S. military.
Terrence J. McNeil, 25, was indicted on three counts of solicitation of a crime of violence and three counts of threatening military personnel.
The indictment was announced by Assistant Attorney General John P. Carlin, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“According to the indictment, Terrence McNeil solicited the murder of members of our military by disseminating ISIL’s violent rhetoric, circulating detailed U.S. military personnel information and explicitly calling for the killing of American service members in their homes and communities,” said Assistant Attorney General Carlin. “ISIL and its followers continue to use social media in an attempt to incite violence around the world, including in the United States. The National Security Division’s highest priority is counterterrorism and we will use all of our tools to disrupt threats and acts of violence against our military members and their families.”
“We owe it to our servicemen and women to protect their safety at home after they fought abroad to protect our freedom,” said U.S. Attorney Dettelbach. “This defendant is charged with urging harm to our men and women in uniform and will now answer for those threats.”
“While we aggressively defend First Amendment rights, the individual arrested went far beyond free speech by reposting names and addresses of 100 U.S. service members, all with the intent to have them killed,” said Special Agent in Charge Anthony. “We will remain vigilant in our efforts to stop those who wish to support these despicable acts.”
According to the indictment:
McNeil maintained social media accounts on several social media web sites, including Facebook, Twitter and Tumblr. He repeatedly professed his support on social media for the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
On or about Sept. 24, 2015, using a Tumblr account, McNeil reblogged a file with the banner “Islamic State Hacking Division,” followed by “Target: United States Military” and “Leak: Addresses of 100 U.S. Military Personnel.”
The file type is a .gif file, which allows multiple still images to be looped in one file, with a timed delay between each image. The text of the first file reads “O Brothers in America, know that the jihad against the crusaders is not limited to the lands of the Khilafah, it is a world-wide jihad and their war is not just a war against the Islamic State, it is a war against Islam…Know that it is wajib (translated to “necessary”) for you to kill these kuffar! and now we have made it easy for you by giving you addresses, all you need to do is take the final step, so what are you waiting for? Kill them in their own lands, behead them in their own homes, stab them to death as they walk their streets thinking that they are safe…”
The file then loops several dozen photographs, purportedly of U.S. military personnel, along with their respective name, address and military branch.
The final image looped is a picture of a handgun and a knife with text that reads “…and kill them wherever you find them…”
On Oct. 3, 2015, McNeil posted on his Twitter account: “Released - Address of the US Navy Seal [R.O] who killed Sheikh Osama Bin Laden R.A. - #GoForth #RunRobertRun.”
The defendant included in his post an embedded link that when clicked revealed the purported address of R.O. and a link to R.O.’s purported photograph. The link further stated that R.O. “is a mummy’s boy who has been trying to hide yet still lives with his father…and mother…In between going around America to conferences boasting at how his ‘claim to fame’ is killing Sheikh Osama Bin Laden R.A. …I am posting his address to brothers & to Al Qaeda in the U.S. as a number one target.”
On Oct. 3, 2015, McNeil posted the content regarding R.O. and his address and photograph from the embedded link described above onto his Tumblr page. McNeil added the statement, “don’t let this kafir sleep peacefully,” to his Tumblr post.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. Each solicitation count carries a statutory maximum sentence of 20 years in prison, and each threat count carries a statutory maximum sentence of five years in prison.
An indictment is only a charge and not evidence of guilt. It is the government’s burden to prove the case beyond a reasonable doubt, and a defendant is presumed innocent until that time.
The case is being investigated by the FBI. This case is being prosecuted by U.S. Attorney’s Office of the Northern District of Ohio and the National Security Division’s Counterterrorism Section following an investigation by the Cleveland FBI Joint Terrorism Task Force, which is comprised of local, state and Federal agencies from Northeast Ohio. The Cleveland FBI would like to thank the following partners in this investigation: Akron Police Department, University of Akron Police Department, Customs and Border Protection, Greater Cleveland Regional Transit Authority Transit Police, and Immigration and Customs Enforcement - Enforcement and Removal Operations.
Abilene Man Sentenced to Serve 50 Years in Federal Prison on Federal Child Pornography ConvictionsRead the Press Release
ABILENE, Texas — Paul Joseph Koestle, 33, of Abilene, Texas, was sentenced this morning by Chief U.S. District Judge Jorge A. Solis to serve a total of 50 years in federal prison, following his guilty plea in August 2015 to two felony child pornography offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Koestle, who has been in custody, pleaded guilty to one count of production of child pornography and one count of receipt of child pornography. Judge Solis sentenced him to the statutory maximum sentence of 360 months on the production count and 240 months on the receipt count, to run consecutively.
According to documents filed in the case, earlier this year the Abilene Police Department (APD) began investigating Koestle based on information they received from the National Center for Missing and Exploited Children (NCMEC) indicating he had uploaded an image of child pornography to a Google account. The APD executed a search warrant at his home in late April 2015.
Koestle, who was home during the execution of the warrant, admitted to downloading child pornography and producing child pornography of a minor child, “Jane Doe.” A forensic evaluation of electronic equipment seized from his residence pursuant to the search revealed hundreds of images of child pornography located on a cellphone, a laptop computer and hard drive. In addition, multiple images of “Jane Doe” engaging in sexually explicit conduct were found.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated. Assistant U.S. Attorney Myria Boehm was in charge of the prosecution.
# # #
Abilene Man Sentenced to 108 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — David Scott Fikani, 62, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 108 months in federal prison, following his guilty plea in July 2015 to an indictment charging one count of possession of prepubescent child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Fikani has been in federal custody since September 2015 when U.S. Magistrate Judge E. Scott Frost determined he violated certain terms of his pretrial release and ordered him detained.
According to plea documents filed in the case, Fikani used the computer at his residence to search the Internet for images and videos depicting minors engaging in sexually explicit conduct. In the course of these searches, Fikani located, downloaded, and viewed numerous images and videos constituting child pornography. Some of those images involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
48 Members and Associates of 2 Rival Bronx Street Gangs Charged in Federal Court with Racketeering Offenses, Including 3 Murders, Narcotics Trafficking, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Delano A. Reid, the Special Agent in Charge of the New York Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), James J. Hunt, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of two Indictments charging a total of 48 members and associates of two Bronx-based street gangs, the Young Gunnaz (“YGz”) and 18 Park, with various racketeering, narcotics, and firearms offenses, including three gang-related murders, and five gang-related attempted murders.
The YGz Indictment charges 22 members and associates of the YGz gang in the case of United States v. Ramel Matthews et al., which has been assigned to U.S. District Judge Valerie E. Caproni. The 18 Park Indictment charges 26 members and associates of the 18 Park gang in the case of United States v. Jonathan Rodriguez et al., which has been assigned to U.S. District Judge Paul A. Engelmayer. Of the 48 defendants charged in both the YGz and 18 Park Indictments, 40 are currently in custody, including 23 defendants who were arrested earlier today as part of a coordinated takedown by ATF, DEA, and NYPD. Most of these defendants will be presented today before United States Magistrate Judge Ronald L. Ellis.
Manhattan U.S. Attorney Preet Bharara said: “Today’s charges incapacitate four dozen alleged gang members who have wreaked havoc on Bronx streets for years. As alleged, these defendants are members of gangs that have engaged in all manner of mayhem – three murders, five attempted murders, racketeering, drug dealing, and gun charges. Thanks to the brave men and women of the ATF, DEA, and NYPD, these alleged criminals must now face justice in federal court.”
ATF Special Agent in Charge Delano A. Reid said: "Today, the ATF along with the NYPD, DEA and HSI, successfully launched a large-scale arrest operation on two, Bronx based, violent street gangs who conducted their illegal narcotics and firearm trafficking operation in and around the Patterson Housing projects for several years. As alleged, the 18th Park and YGz gangs routinely conducted their street level narcotics trafficking of crack cocaine, heroin, and marijuana and in the course of these activities, committed various acts of violence, to include approximately 30 non-fatal shootings, three homicides, assaults and stabbings. With nearly three dozen arrested thus far, I am confident that our efforts today will clearly illustrate that this type of gang activity will not be tolerated and there will be consequences for those who choose to illegally deal in firearms and commit acts of violence. I am hopeful that the residents of this area will wake up to a safer environment no longer plagued by the scourge of senseless gang violence.”
DEA Special Agent in Charge James J. Hunt said: “Drug gangs plague our neighborhoods with gun violence. The bottom line is, when there are gangs competing to sell poison for profit, gunfire, murder and violent crimes are inevitable consequences. I commend law enforcement’s brave efforts to rid the unacceptable risks of violence to our neighborhoods by making these arrests today.”
Commissioner William J. Bratton said: “As alleged, the numerous acts of violence perpetrated by these street gangs demonstrate an egregious and sustained disregard for the law and the safety of our community. This investigation conducted by NYPD detectives and our federal and state partners is to be commended. While the unfortunate correlation between narcotics trafficking and violence is well known, so is our commitment to stop these acts.”
As alleged in the Indictments unsealed today in Manhattan federal court and in other court papers[1]:
United States v. Ramel Matthews, et al.
The YGz was a criminal enterprise that operated mainly in and around several housing developments in the Bronx, New York, from 2005 through December 2015. Members and associates of the YGz enriched themselves by committing robberies and selling drugs, such as crack cocaine, heroin, and marijuana, and engaged in acts of violence, including murder and attempted murder of rival gang members, rival drug traffickers, and innocent bystanders.
For example, on June 27, 2009, YGz members RAMEL MATTHEWS, ANTHONY SCOTT, and HASWANI TYSON attempted to commit a gunpoint robbery near the Mott Haven Houses in the Bronx, and in the course of this attempted robbery, SCOTT shot and killed Darrel Ledgister, who was 21 years old.
More recently, on April 16, 2012, a large group of YGz members, including WENDELL BELLE and WILLIAM BRACEY, stomped to death Moises Lora a/k/a “Noah,” a 16-year-old associate of a rival gang, in a courtyard in the Melrose Houses in the Bronx.
Count One of the YGz Indictment charges RAMEL MATTHEWS, WENDELL BELLE, WILLIAM BRACEY, ANTHONY SCOTT, HASWANI TYSON, RASHAAD CONYERS, PAUL GILBERT, KAREEM LANIER, TERRANCE WILLIAMS, JASON MOYE, MICHAEL BROWN, BRIANT LAMONT MAYNOR, ANDY SEDA, DAVOUN MATTHEWS, JOSEPH ANDERSON, DAVAUGHN BROOKS, JOHN HUGHES, JOSEPH JEFFRIES, DONOVAN REYNOLDS, KYLE HINES, CHANEL LEON, and CHRISTOPHER MORALES with participating in a racketeering conspiracy for criminal involvement in the YGz gang. Count Nine of the YGz Indictment charges 16 of those 22 defendants (namely, RAMEL MATTHEWS, BELLE, BRACEY, SCOTT, CONYERS, GILBERT, LANIER, WILLIAMS, MOYE, BROWN, MAYNOR, SEDA, DAVOUN MATTHEWS, HUGHES, JEFFRIES, REYNOLDS, and MORALES) with a related firearms offense.
Counts Two and Eight of the YGz Indictment charge RAMEL MATTHEWS, ANTHONY SCOTT, and HASWANI TYSON with the murder of Darrel Ledgister in aid of racketeering, and a related firearms offense.
Count Three of the YGz Indictment charges WENDELL BELLE and WILLIAM BRACEY with the murder of Moises Lora in aid of racketeering.
Count Four of the YGz Indictment charges WENDELL BELLE with aiding and abetting an assault with a deadly weapon and attempted murder in connection with a November 2013 shooting aimed at killing rival gang members near Courtlandt Avenue in the Bronx, resulting in a bystander being shot and wounded.
Count Five of the YGz Indictment charges PAUL GILBERT with assault with a deadly weapon and attempted murder in connection with a June 2014 shooting by the Mott Haven Houses in the Bronx aimed at killing an associate of a rival gang in the Bronx, resulting in an individual being shot and wounded.
Count Six of the YGz Indictment charges RASHAAD CONYERS with assault with a deadly weapon and attempted murder in connection with a May 2015 shooting near the Patterson Houses in the Bronx aimed at killing rival gang members in the Bronx.
Count Seven of the YGz Indictment charges RAMEL MATTHEWS, TERRANCE WILLIAMS, MICHAEL BROWN, ANDY SEDA, DAVOUN MATTHEWS, DAVAUGHN BROOKS, JOHN HUGHES, JOSEPH JEFFRIES, KYLE HINES, CHANEL LEON, and CHRISTOPHER MORALES with participating in a conspiracy to distribute crack cocaine, heroin, and marijuana.
United States v. Jonathan Rodriguez, et al.
18 Park was a criminal enterprise that operated mainly in and around the Patterson Houses and Mott Haven Houses in the Bronx, New York, from 2006 through December 2015. Members and associates of 18 Park enriched themselves by selling drugs, such as crack cocaine, heroin, and marijuana, and committed acts of violence, including murder and attempted murder of rival gang members, rival drug traffickers, and innocent bystanders.
For example, on May 29, 2011, 18 Park member KEITH RUIZ and others, murdered Johnny Moore, a 16-year-old associate of a rival gang, in the Patterson Houses in the Bronx.
Count One of the 18 Park Indictment charges JONATHAN RODRIGUEZ, MARQUIS WRIGHT, WALI BURGOS, JASON BENJAMIN, JORDAN RIVERA, WILLIAM AMARAZIN, RAHEEM AMARAZIN, TJON MACOLL, COREY HEYWARD, JONATHAN HARRIS, WILLIAM KNOX, COREY COOKS, DAQUAN McBETH, JAHNOMI BENJAMIN, KEITH RUIZ, RYAN VALENTIN, MIGUEL ROMERO, KAYE ROSADO, ANDREW ECHEVARRIA, NAQUAN SIMMONS, DIQUINN LACEND, WILFREDO RIVERA, KENNETH JENKINS, VINCENT FIELDER, MIA DENTICO, and PAMELA BROWN with participating in a racketeering conspiracy for criminal involvement in the 18 Park gang. Count Six of the 18 Park Indictment also charges 20 of those 26 defendants (RODRIGUEZ, WRIGHT, BURGOS, JASON BENJAMIN, RIVERA, WILLIAM AMARAZIN, RAHEEM AMARAZIN, MACOLL, HEYWARD, HARRIS, KNOX, COOKS, McBETH, JAHNOMI BENJAMIN, VALENTIN, ROMERO, ECHEVARRIA, SIMMONS, LACEND, and DENTICO) with a related firearms offense.
Count Two of the 18 Park Indictment charges KEITH RUIZ with aiding and abetting the murder of Johnny Moore in aid of racketeering.
Count Three of the 18 Park Indictment charges WALI BURGOS, JORDAN RIVERA, and COREY COOKS with assault with a dangerous weapon and attempted murder in connection with an October 2014 shooting in the Patterson Houses aimed at killing a rival gang member.
Count Four of the 18 Park Indictment charges WILLIAM AMARAZIN and TJON MACOLL with assault with a dangerous weapon and attempted murder in connection with a December 2011 shooting aimed at killing an associate of a rival gang.
Count Five of the 18 Park Indictment charges MARQUIS WRIGHT, WALI BURGOS, JASON BENJAMIN, JORDAN RIVERA, WILLIAM AMARAZIN, RAHEEM AMARAZIN, TJON MACOLL, COREY HEYWARD, JONATHAN HARRIS, WILLIAM KNOX, DAQUAN McBETH, JAHNOMI BENJAMIN, MIQUEL ROMERO, KAYE ROSADO, ANDREW ECHEVARRIA, NAQUAN SIMMONS, DIQUINN LACEND, KENNETH JENKINS, VINCENT FIELDER, MIA DENTICO and PAMELA BROWN with conspiring to distribute crack cocaine, heroin, and marijuana.
* * *
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of ATF, the DEA, and the NYPD. He also thanked the United States Attorney’s Office for the Northern District of New York and Bronx County District Attorney’s Office for their participation and support in this ongoing investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, James McDonald, and Dina McLeod are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
###
15-316
United States v. Ramel Matthews et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
RAMEL MATTHEWS WENDELL BELLE
WILLIAM BRACEY
ANTHONY SCOTT
HASWANI TYSON
RASHAAD CONYERS
PAUL GILBERT
KAREEM LANIER
TERRANCE WILLIAMS
JASON MOYE
MICHAEL BROWN
BRIANT LAMONT MAYNOR
ANDY SEDA
DAVOUN MATTHEWS
JOSEPH ANDERSON
DAVAUGHN BROOKS JOHN HUGHES
JOSEPH JEFFRIES DONOVAN REYNOLDS
KYLE HINES
CHANEL LEON CHRISTOPHER MORALES
Life in prison
2
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
RAMEL MATTHEWS
ANTHONY SCOTT
HASWANI TYSON
Death penalty, or life in prison
3
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
WENDELL BELLE
WILLIAM BRACEY
Death penalty, or life in prison
4
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
WENDELL BELLE
20 years in prison
5
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
PAUL GILBERT
20 years in prison
6
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
RASHAAD CONYERS
20 years in prison
7
Narcotics conspiracy
21 U.S.C. § 846
RAMEL MATTHEWS
TERRANCE WILLIAMS, MICHAEL BROWN
ANDY SEDA
DAVOUN MATTHEWS, DAVAUGHN BROOKS, JOHN HUGHES
JOSEPH JEFFRIES
KYLE HINES
CHANEL LEON CHRISTOPHER MORALES
Life in prison
8
Murder through use of a firearm
18 U.S.C. § 924(j)
RAMEL MATTHEWS
ANTHONY SCOTT
HASWANI TYSON
Death penalty, or life in prison
9
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
924(c)(1)(A)(iii)
RAMEL MATTHEWS
WENDELL BELLE
WILLIAM BRACEY
ANTHONY SCOTT
RASHAAD CONYERS, PAUL GILBERT
KAREEM LANIER
TERRANCE WILLIAMS, JASON MOYE
MICHAEL BROWN
BRIANT LAMONT MAYNOR
ANDY SEDA
DAVOUN MATTHEWS,
JOHN HUGHES
JOSEPH JEFFRIES
DONOVAN REYNOLDS, CHRISTOPHER MORALES
Life in prison
DEFENDANT
AGE
RESIDENCE
RAMEL MATTHEWS,
a/k/a “Rah”
26
Bronx, NY
WENDELL BELLE,
a/k/a “Delly Dell”
23
Bronx, NY
WILLIAM BRACEY,
a/k/a “Rel”
21
Bronx, NY
ANTHONY SCOTT,
a/k/a “Tyson”
22
Bronx, NY
HASWANI TYSON,
a/k/a “Swani”
23
Bronx, NY
RASHAAD CONYERS,
a/k/a “Houle”
25
Bronx, NY
PAUL GILBERT,
a/k/a “Too Fly Tay”
a/k/a “Don Tay”
25
Bronx, NY
KAREEM LANIER,
a/k/a “Black”
24
Bronx, NY
TERRANCE WILLIAMS,
a/k/a “TA”
23
Bronx, NY
JASON MOYE,
a/k/a “Tall Jay”
27
Bronx, NY
MICHAEL BROWN,
a/k/a “Mighty”
27
Bronx, NY
BRIANT LAMONT MAYNOR,
a/k/a “Binky”
27
Bronx, NY
ANDY SEDA,
a/k/a “Ant White”
23
Bronx, NY
DAVOUN MATTHEWS,
a/k/a “Juice”
24
Bronx, NY
JOSEPH ANDERSON,
a/k/a “Jojo”
26
Bronx, NY
DAVAUGHN BROOKS,
a/k/a “Day Day”
a/k/a “Dolla”
23
Bronx, NY
JOHN HUGHES,
a/k/a “Pino”
22
Bronx, NY
JOSEPH JEFFRIES,
a/k/a “Joey”
20
Bronx, NY
DONOVAN REYNOLDS,
a/k/a “Donnie G”
22
Bronx, NY
KYLE HINES
22
Bronx, NY
CHANEL LEON,
a/k/a “Black Gums”
23
Bronx, NY
CHRISTOPHER MORALES,
a/k/a “Yayo”
26
Bronx, NY
United States v. Jonathan Rodriguez, et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
JONATHAN RODRIGUEZ
MARQUIS WRIGHT
WALI BURGOS
JASON BENJAMIN
JORDAN RIVERA
WILLIAM AMARIZAN
RAHEEM AMARIZAN
TJON MACOLL
COREY HEYWARD
JONATHAN HARRIS
WILLIAM KNOX
COREY COOKS
DAQUAN McBETH
JAHNOMI BENJAMIN
KEITH RUIZ
RYAN VALENTIN
MIGUEL ROMERO
KAYE ROSADO
ANDREW ECHEVARRIA
NAQUANN SIMMONS
DIQUINN LACEND
WILFREDO RIVERA KENNETH JENKINS
VINCENT FIELDER
MIA DENTICO
PAMELA BROWN
Life in prison
2
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
KEITH RUIZ
Death penalty, or life in prison
3
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
WALI BURGOS
JORDAN RIVERA
COREY COOKS
20 years in prison
4
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
WILLIAM AMARIZAN
TJON MACOLL
20 years in prison
5
Narcotics conspiracy
21 U.S.C. § 846
MARQUIS WRIGHT
JASON BENJAMIN
JORDAN RIVERA
WILLIAM AMARIZAN
RAHEEM AMARIZAN
TJON MACOLL
COREY HEYWARD
JONATHAN HARRIS
WILLIAM KNOX
DAQUAN McBETH
KAYE ROSADO
ANDREW ECHEVARRIA
NAQUANN SIMMONS
DIQUINN LACEND
WILFREDO RIVERA KENNETH JENKINS
VINCENT FIELDER
MIA DENTICO
PAMELA BROWN
Life in prison
6
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
924(c)(1)(A)(iii)
JONATHAN RODRIGUEZ, MARQUIS WRIGHT WALI BURGOS
JASON BENJAMIN JORDAN RIVERA
WILLIAM AMARIZAN RAHEEM AMARIZAN TJON MACOLL
COREY HEYWARD
JONATHAN HARRIS WILLIAM KNOX
COREY COOKS
DAQUAN McBETH
JAHNOMI BENJAMIN
RYAN VALENTIN
MIGUEL ROMERO
KAYE ROSADO
ANDREW ECHEVARRIA
NAQUANN SIMMONS
DIQUINN LACEND
WILFREDO RIVERA
KENNETH JENKINS VINCENT FIELDER
MIA DENTICO
Life in prison
DEFENDANT
AGE
RESIDENCE
JONATHAN RODRIGUEZ,
a/k/a “Bebo”
27
Bronx, NY
MARQUIS WRIGHT,
a/k/a “Mark”
28
Bronx, NY
WALI BURGOS,
a/k/a “Guy Fisher”
21
Bronx, NY
JASON BENJAMIN,
a/k/a “JC”
25
Bronx, NY
JORDAN RIVERA
20
Bronx, NY
WILLIAM AMARIZAN,
a/k/a “Will Dollars” a/k/a “Will Dollars,”
a/k/a “Spanish Will”
24
Bronx, NY
RAHEEM AMARIZAN,
a/k/a “Rah Rah”
22
Bronx, NY
TJON MACOLL,
a/k/a “TJ”
24
Bronx, NY
COREY HEYWARD
29
Bronx, NY
JONATHAN HARRIS,
a/k/a “Eggy”
20
Bronx, NY
WILLIAM KNOX,
a/k/a “Mills Gunna”
23
Bronx, NY
COREY COOKS
20
Bronx, NY
DAQUAN McBETH,
a/k/a “Day Day”
25
Bronx, NY
JAHNOMI BENJAMIN,
a/k/a “Jamroc”
23
Bronx, NY
KEITH RUIZ,
a/k/a “Keefy”
23
Bronx, NY
RYAN VALENTIN
20
Bronx, NY
MIGUEL ROMERO,
a/k/a “Mikey”
22
Bronx, NY
KAYE ROSADO,
a/k/a “Trippa”
30
Bronx, NY
ANDREW ECHEVARRIA,
a/k/a “Drew”
26
Bronx, NY
NAQUANN SIMMONS,
a/k/a “Young Money”
23
Bronx, NY
DIQUINN LACEND,
a/k/a “Naughty”
21
Bronx, NY
WILFREDO RIVERA,
a/k/a “Cito”
19
Bronx, NY
KENNETH JENKINS,
28
Bronx, NY
VINCENT FIELDER,
a/k/a “DJ”
29
Bronx, NY
MIA DENTICO
48
Bronx, NY
PAMELA BROWN
28
Bronx, NY
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tuesday 8 December 2015
eBay Salesman Who Ripped Off Postal Service and His Customers Convicted of Mail FraudRead the Press Release
Assistants U. S. Attorney Christopher P. Tenorio and Emily Keifer (619) 546-8413
NEWS RELEASE SUMMARY – December 8, 2015
SAN DIEGO - Jack Zeljko Pasic pleaded guilty earlier today to defrauding the U.S. Postal Service out of postage due on over 9,000 packages shipped from San Diego to eBay customers throughout the United States between April 2009 and October 2010.
From 2008 through 2010, Pasic ran a company, Diavega, which sold items to customers on eBay. In April 2009, Pasic purchased a postal meter to print postage labels that he would use to ship packages to his Diavega customers. Pasic altered the postage labels, however, to conceal that he had paid only $0.01 in postage when a larger amount of postage was actually owed.
According to his plea agreement, Pasic also labeled the packages to falsely indicate that they were being sent from, and mailed to, the same address in an effort to ensure that the items he shipped would reach their intended destination. In so doing, Pasic ensured the packages were delivered to the customers even when the USPS attempted to return the package to sender for underpayment of postage upon discovering that postage was due. In most cases, the customers were required to pay additional postage fees to the USPS even though they had sent earlier fees to Pasic. In total, Pasic defrauded the USPS out of over $18,000 in unpaid postage.
“The vigilance of the U.S. Postal Service has ensured that the defendant will pay for services unjustly billed to the American public,” said United States Attorney Laura Duffy.
Pasic entered his plea before U.S. Magistrate Judge Nita L. Stormes and is scheduled to be sentenced by U.S. District Judge Cathy Ann Bencivengo on January 8, 2016.
DEFENDANT Case Number 15CR2381-CAB
Jack Zeljko Pasic Age: 51
SUMMARY OF CHARGE
Title 18, United States Code, Sections 1341 (Mail Fraud)
Maximum penalty: 5 years of custody; $250,000 Fine
AGENCY
United States Postal Inspection Service
Youngstown man faces firearms chargeRead the Press Release
A Youngstown man was arrested today to face charges that he illegally possessed a firearm, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Brian K. Bellard, 43, possessed a Smith and Wesson, model SD40VE, .40 caliber pistol, and ammunition in October, despite a previous convictiion for cocaine, trafficking, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Worcester Woman Pleads Guilty in $3.6 Million Food Stamp FraudRead the Press Release
BOSTON – A Worcester woman pleaded guilty today in U.S. District Court in Worcester in connection with a $3.6 million food stamp fraud scheme that she operated out of her Worcester convenience store.
Vida Ofori Causey, 45, pleaded guilty to one count of conspiracy to commit SNAP benefits fraud, one count of SNAP fraud, and one count of money laundering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for March 2, 2016.
The Supplemental Nutritional Assistance Program (SNAP), formerly known as the Food Stamp Program, administered by the U.S. Department of Agriculture (USDA), provides eligible households with government subsidies for certain foodstuffs, and allows holders to exchange their SNAP benefits for food at authorized retail food stores.
Causey was the owner and operator of J&W Aseda Plaza, a convenience store on Main Street in Worcester. From April 2010 to October 2014, Causey conspired with others to commit SNAP fraud by purchasing SNAP benefits from recipients rather than exchanging them for food. Causey purchased the benefits at a discounted value of approximately fifty cents for every SNAP dollar. By so doing, Causey caused the USDA to electronically deposit into a bank account she controlled the full face value of the SNAP benefits fraudulently obtained.
During the course of the four-year conspiracy, Causey defrauded the USDA of approximately $3,638,900 in SNAP funds.
The charge of conspiracy provides for a sentence of no greater than five years in prison and three years of supervised release. The charge of SNAP fraud provides for a sentence of no greater than 20 years in prison and three years of supervised release. The charge of money laundering provides for a sentence of no greater than 10 years in prison and three years of supervised release. Each charge also provides for a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.