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21 January 2016
Corpus Christi Man Charged for Transferring Obscene Material to a MinorRead the Press Release
CORPUS CHRISTI, Texas – Brandon Guthrie, 32, of Corpus Christi, has been charged in a criminal complaint for transferring obscene material to a minor, announced U.S. Attorney Kenneth Magidson.
According to the federal criminal complaint filed this afternoon, Guthrie met a 14-year-old female at a movie theater in Corpus Christi and allegedly began communicating with the minor via a messaging application. The minor’s parents discovered the communications and contacted the Corpus Christi Police Department. An undercover officer assumed control of the minor’s messaging account and continued to communicate with Guthrie. Guthrie allegedly sent the undercover officer several videos of himself engaging in sexual explicit conduct.
Guthrie is in custody and expected to make his initial appearance before U.S. Magistrate Judge Jason Libby tomorrow at 2:00 p.m.
If convicted, he faces up to 10 years in federal prison as well as a possible $250,000 fine.
The charges are the result of the investigative efforts of the FBI and 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Columbia Man Pleads Guilty to Synthetic Heroin Conspiracy that Resulted in DeathRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute synthetic heroin, which resulted in the death of an 18-year-old man.
Nick Connor Burris, 21, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in an Aug. 25, 2015, federal indictment.
By pleading guilty today, Burris admitted that he participated in a conspiracy to distribute synthetic heroin (acetyl fentanyl) in August 2015. Co-defendant Marquette Deandre Murrell, 25, of Columbia, pleaded guilty on Dec. 10, 2015, to the same charge.
Columbia Police Department officers were dispatched to an apartment in the 2400 block of West Broadway in reference to a drug overdose at approximately 12:33 a.m. on Aug. 9, 2015. Upon arrival, officers located an 18-year-old deceased white male. Burris admitted that he supplied the drug which the deceased man had taken immediately prior to overdosing.
Officers located a bag containing the synthetic heroin on Burris. Burris admitted to purchasing the heroin the deceased man took from Murrell, and bringing it to the apartment where the overdose occurred. Burris also commented that Murrell told him the heroin was 95 percent pure, and that efforts should be made to dilute the purity by adding a cutting agent. Burris mixed the synthetic heroin with Benadryl before distributing it to the victim. Burris stated that he was aware of another person who overdosed on the product supplied by Murrell, but lived.
Another person at the apartment told officers that he attempted to revive the deceased male by placing him in cold water and then attempting to have him vomit. He estimated that 10 minutes passed before emergency responders arrived at his apartment.
At approximately 7 p.m. the same day, Murrell was located near downtown Columbia and taken into custody. Murrell was in possession of a bag containing numerous suspected Alprazolam pills and approximately four grams of synthetic heroin. Murrell admitted that he supplied the drug that Burris mixed with Benadryl and distributed to the deceased male.
Under federal statutes, Burris and Murrell are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Columbia, Mo., Police Department and the Drug Enforcement Administration.
Charleston man pleads guilty to Federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to being a felon in possession of a firearm, announced Acting United States Attorney Carol Casto. Derrick Lamb, 24, entered his guilty plea in federal court to the gun crime.
Lamb admitted that on April 13, 2015, he was in possession of a .38 caliber revolver. Lamb is prohibited from possessing any firearm because of a 2012 felony conviction in Kanawha County Circuit Court of possession of a controlled substance with intent to deliver. Lamb faces up to 10 years in federal prison and a $250,000 fine when he is sentenced on April 21, 2016.
The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney John J. Frail is in charge of the prosecution. The hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Captured Fugitive Pleads Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bourbon, Mo., man who was a federal fugitive for more than a year, pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine.
Lucas John Haslag, 31, of Bourbon, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to participating in a conspiracy to distribute methamphetamine between June 19, 2014, and Nov. 21, 2015.
By pleading guilty today, Haslag admitted that he is responsible for the distribution of approximately five pounds (2.265 kilograms) of methamphetamine.
Haslag was indicted by a federal grand jury in Jefferson City in June 2014 after law enforcement officers conducted a car stop and found a pound of methamphetamine, a Derringer pistol and a drug ledger in the vehicle he was driving in Freeburg, Mo. He was a fugitive from justice, but in October 2015 federal agents obtained information about Haslag’s actions and whereabouts. This investigation led to the execution of a search warrant at the Bourbon residence shared by Haslag on Nov. 9, 2015.
Law enforcement officers discovered two pounds of methamphetamine, several firearms and $22,661 in Haslag’s residence. Haslag was arrested on Nov. 23, 2015, and has remained in federal custody without bond.
Under federal statutes, Haslag is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. 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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group) and the Lake Area Narcotics Enforcement Group (LANEG).
Byron Center Man, David W. McQueen's , Conviction and 30-Year Sentence for Ponzi Scheme Upheld on AppealRead the Press Release
GRAND RAPIDS, MICHIGAN — The U.S. Attorney’s Office for the Western District of Michigan announced today that the Sixth Circuit Court of Appeals has upheld the conviction and 30-year sentence of David W. McQueen. On December 3, 2014, McQueen, age 44, of Byron Center, Michigan, was sentenced to 30 years in prison and ordered to pay $32,036,997.63 in restitution to his victims and $926,787.00 in restitution to the IRS. McQueen was convicted on May 9, 2014, after a six-week jury trial of six counts of mail fraud, six counts of money laundering, and three tax counts stemming from a massive Ponzi scheme that spanned three years. The scheme affected more than 800 families, and preyed upon unsophisticated, often elderly investors. The Sixth Circuit’s opinion can be found online at http://www.ca6.uscourts.gov/opinions.pdf/16a0033n-06.pdf.
The Court of Appeals unanimously rejected McQueen’s claims that the government lacked sufficient evidence of his guilt, that he should receive a new trial, and that his sentence was unconstitutional and unreasonable. The Court agreed with the U.S. Attorney’s Office’s arguments on appeal that there was ample evidence of guilt and that McQueen received a fair trial and a fair sentence.
The evidence at trial showed that, as with many investment frauds, McQueen likely did not set out to create a criminal enterprise that would result in a financial tragedy for his investors. In 2006, McQueen, who made an adequate living in sales, used borrowed funds to invest in a company called Multiple Return Transactions (“MRT”). MRT was owned and operated by Jim Clements. Clements promised returns of 10% per month or higher to McQueen. After a few months of making such returns, McQueen decided to capitalize on his apparent investment success and invited others to invest through him. McQueen created a company called Accelerated Income Group (“AIG”), through which he promised returns as high as 5-6% to investors. In addition, McQueen recruited insurance agents to sell his investments to their clients. For a short time, AIG was very successful (at least on paper). McQueen used MRT’s promised returns of 10%, to make AIG’s promised returns of 5%. McQueen could meet his 5% obligations to his investors and then keep 5% for himself.
In mid-2007, MRT stopped making payments and meeting redemption requests. MRT was merely a Ponzi scheme, and their money was gone and would never be recovered. Instead of notifying AIG investors that MRT had failed, however, McQueen continued to tell investors that their money was safe and growing. Without MRT making its monthly payments, McQueen and AIG could not meet their 5% monthly obligations to investors based on investment earnings. Instead, McQueen used the only funds he had available to make promised interest payments – money from new investors.
Big Brothers Big Sisters of America to Pay $1.6 Million to Resolve Allegations of False Claims for Federal GrantsRead the Press Release
Big Brothers Big Sisters of America Corporation (Big Brothers) has agreed to pay the United States $1.6 million to resolve allegations of false claims for funds under Department of Justice grants awarded to help children at risk, the Justice Department announced today. Big Brothers is a not-for-profit organization that provides mentoring services to boys and girls throughout the United States. The organization, originally based in Philadelphia, Pennsylvania, is now headquartered in Tampa, Florida.
“Organizations such as Big Brothers do great work, but in carrying out their mission they also have an obligation to the populations they serve and to the taxpayer to ensure that government grant funds are used responsibly according to the rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The settlement announced today exemplifies the Department’s commitment to hold those who mishandle such funds accountable.”
“The U.S. Attorney’s office is committed to protecting federal grants and ensuring that the funds are appropriately spent,” said U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania. “Federal grant recipients must administer these grants with transparency and diligence, and the compliance measures implemented pursuant to this settlement agreement will help to achieve those goals.”
Big Brothers is a national organization that acts through approximately 300 independent affiliate agencies across the United States. Since 2004, Big Brothers has received millions of dollars in grants from the Justice Department to support initiatives on behalf of children at risk. As a condition of those grants, Big Brothers was required to maintain sound accounting and financial management systems in accordance with federal regulations and guidelines designed to ensure that grant funds would be properly accounted for and used only for appropriate purposes.
The United States alleges that Big Brothers violated these regulations and guidelines with respect to three grants awarded by the Justice Department from 2009 to 2011, by commingling the grant funds with general operating funds, failing to segregate expenditures to ensure that the funds were used as intended and failing to maintain internal financial controls to safeguard the proper use of those funds. These allegations were the focus of a 2013 audit of the three grants performed by the Department of Justice Office of the Inspector General. Since 2013, Big Brothers has replaced its management team and begun implementing policies governing the use of federal grant funds.
“We appreciate the support of the U.S. Attorney for the Eastern District of Pennsylvania and the Civil Division in working with us on these kinds of cases,” said Department of Justice Inspector General Michael E. Horowitz. “The OIG’s auditors and investigators will continue to work with each other closely to uncover misuses of grant funds, and with our law enforcement partners to ensure that justice is served.”
In addition to paying the United States $1.6 million, and as part of the settlement, Big Brothers has agreed to institute a strict compliance program that requires the organization to engage in regular audits, both internally and by independent auditors; establish a compliance team, an employee code of conduct, whistleblower policies and a disciplinary policy for employees who engage in or fail to disclose abuses of federal grant funds; provide regular employee training on these policies; and employ risk assessment tools to detect abuses that might otherwise go undetected.
The settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Civil Division’s Commercial Litigation Branch. The Department of Justice Office of the Inspector General conducted the investigation.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
Big Brothers Big Sisters of America to Pay $1.6 Million to Resolve Allegations of False ClaimsRead the Press Release
PHILADELPHIA – Big Brothers Big Sisters of America Corporation (Big Brothers) has agreed to pay the United States $1.6 million to resolve allegations of false claims for funds under Department of Justice grants awarded to help children at risk, announced United States Attorney Zane David Memeger and Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. Big Brothers is a not-for-profit organization that provides mentoring services to boys and girls throughout the United States. The organization, originally based in Philadelphia, Pennsylvania, now is headquartered in Tampa, Florida.
Big Brothers is a national organization that acts through approximately 300 independent affiliate agencies across the United States. Since 2004, Big Brothers has received millions of dollars in grants from the Justice Department to support initiatives on behalf of children at risk. As a condition of those grants, Big Brothers was required to maintain sound accounting and financial management systems in accordance with federal regulations and guidelines designed to ensure that grant funds would be properly accounted for and used only for appropriate purposes.
The United States alleges that Big Brothers violated these regulations and guidelines with respect to three grants awarded by the Justice Department from 2009 to 2011, by commingling the grant funds with general operating funds, failing to segregate expenditures to ensure that the funds for each grant were used as intended, and failing to maintain internal financial controls to safeguard the proper use of grant funds. These allegations were documented in a 2013 audit of the three grants performed by the Department of Justice Office of the Inspector General. Since 2013, Big Brothers has replaced its management team and begun implementing policies aimed at correcting deficiencies in its management and accounting of federal grant funds.
“The US Attorney’s office is committed to protecting federal grants and ensuring that the funds are appropriately spent,” said Memeger. “Federal grant recipients must administer these grants with transparency and diligence, and the compliance measures implemented pursuant to this settlement agreement will help to achieve those goals.”
“Organizations such as Big Brothers have an obligation to the populations they serve as well as to the taxpayer to ensure that government grant funds are used for their intended purpose,” said Mizer. “The settlement announced today exemplifies the Department’s commitment to hold those who mishandle such funds accountable.”
“We appreciate the support of the U.S. Attorney for the Eastern District of Pennsylvania and the Civil Division in working with us on these kinds of cases,” said Department of Justice Inspector General Michael E. Horowitz. “The OIG’s auditors and investigators will continue to work with each other closely to uncover misuses of grant funds, and with our law enforcement partners to ensure that justice is served.”
In addition to paying the United States $1.6 million, Big Brothers has agreed to institute a strict compliance program that requires the organization to engage in regular audits, both internally and by independent auditors; establish a compliance team, an employee code of conduct, whistleblower policies, and a disciplinary policy for employees who engage in or fail to disclose abuses of federal grant funds; provide regular employee training on these policies; and employ risk assessment tools to detect abuses that might otherwise go undetected.
The investigation was conducted by the Department of Justice Office of the Inspector General. The settlement was handled by Assistant U.S. Attorneys Joel M. Sweet and Scott W. Reid in coordination with Trial Attorney David W. Tyler of the Justice Department’s Civil Division, Commercial Litigation Branch.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
Battlefield Man Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Battlefield, Mo., man has been indicted by a federal grand jury for receiving and distributing child pornography.
Dennis Prince, 61, of Battlefield, was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Jan. 19, 2015. Prince was arrested and had his initial court appearance today.
The federal indictment alleges that Prince received and distributed child pornography between Oct. 31, 2013 and July 1, 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Springfield, Mo., Police Department, the Battlefield, Mo., Police Department, and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Another Sex Trafficker ConvictedRead the Press Release
HOUSTON – A 45-year-old Honduran woman has been convicted of conspiracy to commit sex trafficking, announced U.S. Attorney Kenneth Magidson.
Maria E. Gonzales Munoz aka “Merci,” 45, co-owned numerous brothels, including Cocodrillos, that posed as bars in and around the Houston area which facilitated commercial sex.
The undercover operation revealed that Munoz offered a female to as a prostitute at Cocodrillos. Even though the young female reported to be underage and had illegally entered the United States, Munoz still said she could work at Cocodrillos and even offered to provide living arrangements at her residence. Gonzales also informed the female that she could help her appear older through use of make-up and help her obtain a fraudulent identification card.
Gonzales will remain in custody pending sentencing, set for April 7, 2016, before U.S. District Judge Nancy Atlas. At that time, she faces up to life in prison.
The investigation leading to the filing of criminal charges was the result of an investigation conducted by members of the Human Trafficking Rescue Alliance (HTRA) in Houston, which includes the FBI, Harris County Sheriff’s Office, Immigration and Customs-Enforcement - Homeland Security Investigations, Texas Alcoholic and Beverage Commission, Department of State, Texas Department of Public Safety and the Houston Police Department.
Assistant United States Attorney Ruben R. Perez is prosecuting the case.
Anchorage Resident Sentenced to Two and A Half Years in Prison for Conspiracy, Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Anchorage resident Zachary Ensman was sentenced to two and a half years in prison for conspiring to cash checks stolen from the mail and from vehicle break-ins, and taken during home burglaries. Ensman also used stolen identities to cash the stolen checks and to fraudulently open bank accounts to use for negotiating stolen checks. The loss from the conspiracy was over $40,000.
Zachary Ensman, 31, of Anchorage, Alaska, was sentenced today by U.S. District Judge Sharon L. Gleason to two and a half years in prison on nine counts that included charges of conspiracy, bank fraud, possession of stolen mail, and aggravated identity theft. Judge Gleason ordered Ensman to pay full restitution to the victims.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Ensman conspired with Kelci Neal to use stolen checks and stolen identities at banks and businesses in Anchorage from October 2014 to August 2015, to obtain over $47,000.
In imposing the sentence, Judge Gleason noted the impact to the individuals whose checks and identities were stolen and the banks that were defrauded.
Kevin Feldis, First Assistant U.S. Attorney, emphasized that “Ensman was part of a criminal conspiracy that harmed numerous people in our community. Not only were checks stolen, and cars and homes invaded, but people’s personal identities were stolen and misused. The impact of this crime is far greater than just the 40,000 dollars in falsified checks that were forged and cashed. Sixteen individuals had checks stolen, four had their identities stolen, and seven banks were defrauded. The United States Attorney’s Office places a priority on prosecuting these crimes and seeking compensation for the victims.”
“Postal Inspectors worked closely with the U.S. Attorney’s Office, Anchorage Police Department, and fraud investigators from numerous banking institutions on this investigation,” said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service. “We take mail theft and subsequent use of stolen mail to commit identity theft very seriously and will continue to vigorously protect the U.S. Mail and customers against all forms of criminal attack and misuse.”
The United States Postal Inspection Service and the Anchorage Police Department conducted the investigation leading to the indictment in this case.
Alabama Man Heads to Prison for Importing MethamphetamineRead the Press Release
McALLEN, Texas – A 42-year-old man from Boaz, Alabama, has been ordered to federal prison following his conviction of importing and possessing with intent to distribute approximately 16 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury sitting in McAllen convicted James Marcus Malone on all four counts as charged following two days of testimony and less than two hours of deliberation on Sept 10, 2015.
Today, U.S. District Judge Micaela Alvarez, who presided over the trial, handed Malone a total sentence of 320 months in federal prison to be immediately followed by 10 years of supervised release. During the hearing, the court considered the defendant’s lengthy criminal history, which included several prior drug convictions, and noted that the sentence was appropriate to promote respect for the law and to deter future criminal conduct of the defendant.
During trial, the jury heard that on March 20, 2015, Malone entered the U.S. at the Hidalgo, Texas Port of Entry, driving a Chevrolet Tahoe with Alabama license plates. Authorities soon determined he was linked to another vehicle and individual which subsequently arrived at the same Port of Entry just a few minutes later. The second vehicle, a Dodge Ram pickup truck, was driven by a man who presented an Alabama driver’s license. At the primary inspection area, a Customs and Border Protection (CBP) officer made initial contact with Malone and noticed he appeared nervous and incoherent when responding to questions regarding the purpose of his trip into Mexico. The officer then referred Malone to secondary inspection.
There, Malone denied knowing the other individual in the Dodge Ram pickup who was also from Alabama.
During a subsequent search of the Dodge Ram, CBP officers discovered approximately 16 kilograms of methamphetamine concealed within the muffler.
The jury also heard that Malone eventually admitted, during a post-Miranda interview, to knowing the other man from Alabama but claimed he was only dropping him off in Mexico to visit a recently deported girlfriend. Malone further stated during that interview that he assumed his travel companion was transporting narcotics, but that he forced himself to believe the story concerning the girlfriend and did not want full details.
However, the government presented evidence showing that Malone drove a group of conspirators from Alabama all the way to Reynosa for the purpose of picking up the Dodge Ram which was loaded with the narcotics. There was also evidence to suggest Malone, along with other conspirators, fabricated the story regarding the recently deported girlfriend in an attempt to ward off attention from law enforcement at the Port of Entry. A Homeland Security Investigations (HSI) agent testified and phone records proved Malone was in constant communications with a conspirator waiting for the load of narcotics to arrive in the Houston area prior to continuing back to Alabama.
Malone will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to charges was conducted by CBP and HSI. Assistant U.S. Attorneys Alex Benavides and Michael Day are prosecuting the case.Albuquerque Man Arraigned on Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Marcos Barela, 28, of Albuquerque, N.M., made his initial appearance in federal court today on an indictment charging him with violating the federal firearms laws. Barela remains in federal custody pending a preliminary hearing and a detention hearing which are currently scheduled for tomorrow morning.
Barela was charged by federal indictment on Oct. 7, 2015, with unlawfully possessing a firearm and ammunition on May 4, 2015, in Bernalillo County. N.M. According to the indictment, Barela was prohibited from possessing firearms or ammunition because of his prior criminal history which includes felony convictions for embezzlement, robbery, conspiracy to commit robbery, possession of a controlled substance, battery on a peace officer, arson and criminal damage to property.
Barela was arrested on a warrant for a state probation violation on May 4, 2015. He was arrested on the federal indictment today after he was transferred to federal custody from state custody.
If convicted of the offense against him, Barela faces a maximum sentence of ten years in federal prison. If Barela is determined to be a career criminal, he faces an enhanced sentence of not less than 15 years in federal prison upon conviction. The indictment against Barela is merely an accusation and Barela is presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DEA with assistance from the 2nd Judicial District Attorney’s Office and the Probation and Parole Division of the New Mexico Corrections Department.
Assistant U.S. Attorney David M. Walsh is prosecuting the case as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat and violent offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
46 Southwestern PA Residents Charged in Fayette-County Based Cocaine and Heroin Trafficking RingRead the Press Release
PITTSBURGH – An additional 19 southwestern Pennsylvania residents have been indicted by a federal grand jury for violating the federal narcotics laws, bringing to 46 the number of defendants charged with participating in a large-scale cocaine and heroin trafficking organization operating in Fayette and Washington counties. The announcement was made today by federal, state and local law enforcement officials during a news conference at the Pennsylvania State Police Uniontown barracks.
“The 19 defendants charged this week are among a series of indictments we have brought to disrupt and dismantle the cocaine and heroin trafficking networks that have been operating in Fayette and surrounding counties, menacing neighborhoods and threatening the quality of life of the law-abiding citizens who live here,” stated U.S. Attorney David J. Hickton. “The U.S. Attorney’s Office continues to forge a community impact prosecution strategy designed to effect a demonstrable and meaningful reduction in community crime and improve public safety.”
“The arrests yesterday demonstrate, once again, the continued successful partnership of federal, state and local law enforcement in Western Pennsylvania,” said Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Field Office. “The Pittsburgh Division of the FBI remains committed to stopping the flow of illegal drugs and improving the quality of life in the communities we serve. We are grateful to our law enforcement partners who worked tirelessly with us throughout this investigation and who are equally committed to keeping our neighborhoods safe.”
“Our troopers, working alongside with our federal, state, and local partners, have had a significant impact in disrupting the trafficking of illegal drugs in Fayette and the surrounding counties, said Captain David J. Heckman, Director of the Pennsylvania State Police/Drug Law Enforcement Division. “These efforts confirm our obligation to the citizens of Pennsylvania to dismantle the criminal enterprises that have a devastating impact on the quality of life in our communities.”
The two-count indictment, returned on January 19, named:
- Rodney Harris, 43, of Uniontown, Pa.;
- Leslie Blakey, 50, of Uniontown, Pa.;
- Gary Bradley, 42, of Arnold, Pa.;
- David Crews, 40, of Monessen, Pa.;
- Joseph Croftcheck, 67, of Hopwood, Pa.;
- Allen Dade; 34, of Brownsville, Pa.;
- Barry Douglas, 41, of Waynesburg, Pa.;
- Jamal Eddings, 34, of Uniontown, Pa.;
- Kwame Eddings, 35, of Uniontown, Pa.;
- William Fitzgerald, 41, of Uniontown, Pa.;
- Gregory Gray, Sr., 53, of Vanderbilt, Pa.;
- Eugene Grooms, 40, of Brownsville, Pa.;
- Jermaine High, 42, of Hiller, Pa.;
- Darnell Howell, 44, formerly of Belle Vernon, Pa.;
- Terrance Lewis, 42, of Uniontown, Pa.;
- Thomas McGhee, 31, of Cardale, Pa.;
- Wesley Middleton, 37, of Brownsville, Pa.;
- Kent Ramsey, 42, of Uniontown, Pa.; and
- Norman Thornton, 61, of Donora, Pa..
According to the indictment, from January 2010, and continuing to around June 2015, Harris, Lewis, and Bradley conspired to distribute and possess with intent to distribute heroin. The indictment also alleges that Harris and the remaining defendants conspired to distribute and possess with intent to distribute cocaine. The indictment seeks forfeiture of the proceeds of the crimes, including a combined $1,140,200, as well as three firearms and real estate.
For Harris, Crews, and Middleton, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10 million, or both. For Blakey, Croftcheck, Douglas, Fitzgerald, Gray, Sr., Howell, Lewis, Ramsey, and Thornton, the law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5 million, or both. For the remaining defendants, the law provides for a maximum total sentence of not more than 20 years in prison, a find of $1 million, or both.
Previously Announced Indictments
On September 16, 2015, a 247-count indictment named Andre Saunders, 35, of Uniontown, Pa., charging him with violating federal narcotics, firearms, and money laundering laws.
According to the indictment, from around January 2010, and continuing to around June 2015, Saunders conspired to distribute and possess with intent to distribute at least one kilogram of heroin and at least five kilograms of cocaine. Saunders is also charged with possession with intent to distribute at least one hundred grams of heroin on May 5, 2015. Additionally, on May 5, 2015, Saunders possessed a firearm, although he is prohibited from possessing a firearm due a prior felony drug-trafficking conviction. The indictment seeks forfeiture of the proceeds of the crimes as well as property that was acquired with the proceeds and used to commit the crimes, including a combined $682,292.25, two residential properties and a vehicle.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10 million, or both.
On December 10, 2015, a seven-count indictment named:
- William J. Chaffin Jr., 48, of Adah, Pa.;
- Semori Wilson, 45, formerly of Uniontown, Pa.;
- Domin Guerrero-Guerrero, 32, of Lebanon, Pa.;
- Dexter Allen, 27, of Uniontown, Pa.;
- George Daube, 59, of Donora, Pa.;
- Chalfonte Demery, 34, of McKeesport, Pa.;
- Damien Gibson, 41, of Duquesne, Pa.;
- Peter Hawkins, 44, of McKeesport, Pa.;
- Richard Lassic, 41, of Washington, Pa.;
- Marquis Bailey, 24, of Uniontown, Pa.;
- Tomarrio Blackburn, 33, McClellandtown, Pa.;
- Anitra Dues, 38, of Adah, Pa.;
- Brandon Harrison, 29, of McClellandtown, Pa.;
- Mark Johnson, 28, of Uniontown, Pa.;
- Keith Thomas, 30, of Uniontown, Pa.;
- Herbert Ballard, 50, of Pittsburgh, Pa.; and
- Nygel Saunders, 26, of Uniontown, Pa..
According to the indictment presented to the court, the defendants named above (except for Herbert Ballard and Nygel Saunders) engaged in a conspiracy to possess with intent to distribute and distribute cocaine from June 2015 to November 2015. Individually, William J. Chaffin Jr., Richard Lassic, Herbert Ballard, and Keith Thomas are charged with possession with intent to distribute and distribution of a quantity of cocaine, while Semori Wilson and Nygel Saunders are charged with possession with intent to distribute and distribution of 500 grams or more of cocaine. William J. Chaffin Jr. is also charged with possessing a firearm after a prior felony conviction.
The law provides for a maximum total sentences ranging of not less than five years in prison and up to life in prison, and fines ranging from $250,000 up to $8 million.
On December 16, 2015, a four-count indictment named:
- Prince Linton, age 41, of Uniontown, PA;
- Vaughn Gaines, age 44 of Uniontown, PA ;
- Donald Nicklo, age 40, of Uniontown, PA;
- Donald Brown, age 44, of Latrobe, PA; and
- Megan Gall, age 31, of Uniontown, PA.
According to the indictment, the defendants named above (except for Megan Gall) engaged in a conspiracy to possess with intent to distribute and distribute cocaine and heroin from August 2013 through May 2014. Individually, Donald Nicklo and Vaughn Gaines are additionally charged with possessing with intent to distribute a quantity of cocaine. Megan Gall is charged with unlawfully using a cellular telephone in committing, causing and facilitating the commission of the conspiracy to possess with intent to distribute and distribute cocaine and heroin.
The law provides for maximum total sentences ranging from four years in prison and a fine of $250,000, to not less than five years and up to 40 years in prison and a fine of $5 million.On August 5, 2014, an 11-count indictment named:
- Kenneth White, 38, of Uniontown, Pa.;
- Harold Jones, 27, of Uniontown, Pa.;
- George Kiss, 27, of Uniontown, Pa.; and
- Kendrick Pratt, 35, of Uniontown, Pa.
According to the indictment from around January 2013, and continuing to in and around December 2013, the defendants conspired with one another to possess with intent to distribute and distribute heroin. Harold Jones is charged with eight additional counts of possession with intent to distribute and distribution of less than 100 grams of heroin, and Kenneth White is charged with one count of the same.The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1 million or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Barbara K. Doolittle and Conor Lamb are prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Pennsylvania State Police, the Drug Enforcement Administration, the Fayette County Drug Task Force, the Pennsylvania Attorney General’s Office, the Allegheny County Sheriff’s Office, the Allegheny County Police Department, the Internal Revenue Service-Criminal Investigations and the United States Postal Inspection Service. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
20 January 2016
Winter Harbor Woman Sentenced to Probation for Theft from the Postal ServiceRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Sandra Melnick, 53, of Winter Harbor, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to three years of probation for the theft of public money. She was also ordered to pay the U.S. Postal Service $1,629.55 in restitution. The defendant pled guilty on August 11, 2015.
According to court records, from about May 19 to September 12, 2014, while serving as a Postmaster Relief at the Sullivan, Maine Post Office, Melnick issued a series of money orders without reporting the sale or tendering the money to the Postal Service. Many of these money orders were cashed by recipients before the defendant reported them as sold. When Postal Service investigators audited Melnick’s accounts, there were three previously-cashed money orders that Melnick had not reported as sold.
The investigation was conducted by the U.S. Postal Service, Office of the Inspector General.
Wendy Moore and Chris Latham Murder for Hire Convictions Affirmed on AppealRead the Press Release
Contact Person: Nathan S. Williams (843) 727-4381
Columbia, South Carolina ---- The United States Attorney’s Office for the District of South Carolina stated today that the convictions against Wendy Annette Moore, age 39, and Christopher Austin Latham, age 52, both of Sullivan’s Island, South Carolina, were affirmed by the Fourth Circuit Court of Appeals in a published opinion. The two were convicted following a February 2014 jury trial, where Moore was convicted of Conspiracy and Use of Interstate Facilities in the Commission of Murder for Hire under 18 U.S.C. §§ 1958(a), 1958(b); Solicitation of Murder for Hire under 18 U.S.C. § 373; and Possession of a Firearm in Furtherance of a Crime of Violence under 18 U.S.C. §924(c). Latham was convicted of a single count of Use of Interstate Facilities in the Commission of Murder for Hire under 18 U.S.C. §§ 1958(a). Both were sentenced in August, 2014, where Moore was sentenced to 15 years imprisonment and Latham was sentenced to 10 years imprisonment. The written Court of Appeals opinion may be found at http://www.ca4.uscourts.gov/Opinions/Published/144645.P.pdf
The case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigations; and the City of Charleston Police Department. Assistant United States Attorneys Nathan Williams and Rhett DeHart of the Charleston office prosecuted the case and appeal.
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Ukrainian Citizen Admits Using Army of 13,000 Infected Computers to Loot Log-In Credentials, Payment Card DataRead the Press Release
NEWARK, N.J. – The administrator of two criminal online hacking forums today admitted stealing log-in and payment card data as part of an international hacking conspiracy, U.S. Attorney Paul J. Fishman announced.
Sergey Vovnenko, a/k/a “Sergey Vovnencko,” “Tomas Rimkis,” “Flycracker,” “Flyck,” “Fly,” “Centurion,” “MUXACC1,” “Stranier,” and “Darklife,” 29, most recently of Naples, Italy, pleaded guilty before the U.S. District Judge Esther Salas in Newark federal court to Count One and Count Three of an indictment charging him with wire fraud conspiracy and aggravated identity theft.
Vovnenko was arrested on June 13, 2014, following an international investigation led by the U.S. Secret Service in coordination with Italian law enforcement. He had been detained by the Italian authorities pending the resolution of extradition proceedings, which he contested for more than 15 months.
According to documents filed in this case and statements made in court:
From September 2010 through August 2012, Vovnenko and his conspirators operated an international criminal organization that hacked into the computers of individual users and companies located in the United States and elsewhere. They used that access to steal user names and passwords for bank accounts and other online services, as well as debit and credit card numbers and related personal identifying information.
Vovnenko admitted that, in order to steal this data, he operated a “botnet” – more than 13,000 computers infected with malicious computer software – programmed to gain unauthorized access to computers and to identify, store, and export information from hacked computers. A number of the infected computers were located in New Jersey. Vovnenko admitted using malware known as “Zeus” to steal banking information and record the keystrokes of the users of infected computers.
According to the indictment, Vovnenko was a high-level administrator of several online criminal forums and used his position to traffic in the data he stole as part of the conspiracy. These forums featured electronic bulletin boards, which members used to publicly communicate with all members and also send private messages directly to individual members.
The public and private discussions on these forums typically pertained to criminal activity, including the purchase, sale, and use of stolen log-in credentials and payment card data, as well as discussions related to cybercrime activity such as malicious computer hacking. For example, in August 2012, one of the forums offered various illicit products for sale, including access to compromised computer servers located in the United States. A price was listed for each product, and customers could click an “order” button and purchase the product using “credits” associated with their accounts.
The wire fraud conspiracy charge to which Vovnenko pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The aggravated identity theft charge carries a mandatory two-year sentence, to be served consecutively to the conspiracy charge. Sentencing is scheduled for May 2, 2016.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Acting Special Agent in Charge Kenneth Pleasant, with the ongoing investigation leading to today’s plea.
He also thanked the Department of Justice’s Office of International Affairs in Washington and its attaché in Rome; the Office of the U.S. Ambassador to the Italian Republic and the Republic of San Marino, John R. Phillips; and the Italian Ministry of Justice and Italian law enforcement officials for their extraordinary support.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
Defense Cousel: Timothy Anderson Esq., Red Bank, New Jersey
U.S. Attorney’s Office Collects More Than $32 Million in Civil and Criminal Penalties in Fiscal Year 2015Read the Press Release
ALBANY, NEW YORK – Albany, NY - U.S. Attorney Richard S. Hartunian announced today that the U.S. Attorney’s Office for the Northern District of New York collected more than $32 million in civil and criminal penalties in fiscal year 20151. Of this amount, $4,792,446 was collected from criminal prosecutions; $8,057,372 was collected via the forfeiture of money and other assets that represented the proceeds of criminal conduct or property used to commit such conduct; $19,210,739 was collected in civil cases; and an additional $508,916 was collected in civil cases worked in conjunction with other U.S. Attorney’s Offices and agencies in the Department of Justice.
1 The federal fiscal year runs from October 1st to September 30th.
Nationally, U.S. Attorney General Loretta E. Lynch announced that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015 – more than seven and a half times the appropriated $2.93 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said Attorney General Loretta Lynch. "The collections we are announcing . . . demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work."
United States Attorney Richard S. Hartunian said, "Recovering ill-gotten gains from wrongdoers is an important part of our work to protect the public and secure justice for all. Such recoveries remove the incentive for improper conduct and fund restitution for victims and other important programs. These collections results demonstrate the value of using all available remedies to address violations of law fairly."
Notable cases in which funds were recovered by the U.S. Attorney’s Office during fiscal year 2015 include the following:
Allegations of fraud perpetrated against Disadvantaged Business Enterprise program:
HD Supply Waterworks, the Nation’s largest supplier of water, sewer, fire protection and storm drain products, paid the United States $4,945,000 under the False Claims Act to resolve allegations that it participated in a scheme designed to take advantage of the Disadvantaged Business Enterprise (DBE) program in order to obtain subcontracts on federally-funded projects. The DBE program provides opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. The settlement resolved allegations that Waterworks enabled various prime contractors to represent falsely that a now-defunct DBE, American Indian Builders & Suppliers, had performed commercially useful functions on federally-funded projects when, in reality, the prime contractors worked directly with Waterworks and used the DBE as a pass through.
Hospital and physician combine to pay to resolve billing improprieties self-disclosed by the hospital:
Oswego Hospital, a 164-bed acute care community hospital located in Oswego, New York, agreed to pay $1,456,457.33 to resolve False Claims Act liability stemming from healthcare billing improprieties that the hospital self-disclosed to the federal government. Dr. Vilas Patil, a physician formerly working as an independent contractor with Oswego Hospital, agreed to pay $204,365.97 to resolve False Claims Act liability in connection with a related investigation. The combined recovery to the state and federal governments was $1,660,823.30. The improprieties centered on billings that were unsupported by valid medical records and "repeat notes." These were instances where a patient’s chart would cover multiple days of inpatient services but the same treatment note was used for each day. The medical records therefore failed to support that any distinct services were rendered (making it improper to bill) and were of little to no use to the patients or subsequent providers trying to learn the patient’s mental health history.
Securities fraud conviction nets large restitution recovery:
On May 16, 2001, Paul Ryan was sentenced to be imprisoned for 37 months and to pay restitution in the amount of $2,881,662.90 to Albany Savings Bank (known as First Albany) in connection with his securities fraud conviction. After his release from prison, Ryan became employed by Integra Networks, Inc., and arranged for compensation in the form of company stock transferred to a Trust he established. Upon learning of the stock, the United States initiated an investigation into whether the transfers were improper. Prior to instituting an action, the United States was informed that Mr. Ryan wished to avoid further litigation and was willing to arrange the transfer of Integra stock to First Albany in order to satisfy the remaining balance of his restitution obligation. After successfully negotiating an in-kind stock transfer to the victim, stock valued at $2,634,035.71 was issued to First Albany, resulting in full satisfaction of the court-ordered restitution.
Government Forfeitures involving synthetic marijuana distributors:
The United States forfeited $1,707,988.11 from synthetic marijuana distributors, Eagle Eye Products, Inc., & Canyon Novelty Sales, Inc. et al., based in California but having shipped synthetic marijuana to the Northern District of New York for distribution and sale at various head shops throughout Central New York. An additional $39,652.39 was seized and forfeited from the owner of Zonen LTD, a head shop based in the Northern District of New York which purchased and sold synthetic marijuana products, such as "bizarro" and "spice." The United States also forfeited $103,253.22 in U.S. Currency and a 2010 Chevrolet Express Cargo Van from members of the Mansour synthetic marijuana distribution conspiracy, involving the sale of packets of synthetic marijuana at various locations throughout the City of Syracuse, including corner shops.
All U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the U.S. Department of Education.
U.S. Attorney Dettelbach to step down next monthRead the Press Release
United States Attorney for the Northern District of Ohio Steven M. Dettelbach has announced that he had submitted his resignation to President Obama and Attorney General Lynch effective on Feb. 5, 2016.
Dettelbach, 50, stated that he plans to reenter private practice.
“Serving as the United States Attorney, and leading and working with the incredible men and women of this office and so many law enforcement agencies, has been the single greatest honor of my professional life,” Dettelbach said. “I want to thank President Obama for affording me that rare opportunity. I hope that in the future I can both serve my clients well and remain an active part of this incredible community through public service.”
As U.S. Attorney, Dettelbach continued to focus on corruption, violent crime and fraud while also making civil rights and cybercrime new priorities. He made efforts in each of those areas to not only ramp up enforcement, but to prevent crime by engaging the community through outreach and creative programming.
Dettelbach emphasized transparency, publicly issuing releases on nearly every case charged. He also took steps to enhance the internal review of cases, requiring for the first time prosecution memoranda and indictment review committees in significant cases. He created a dedicated unit to focus on civil rights violations, both criminal and civil, and dedicated two prosecutors to cyber enforcement and formation of the Northern Ohio Cyber Security Consortium with leading businesses in the area. He created a new position of outreach coordinator to better understand community needs, and successfully managed the office through unprecedented Washington-based budget crises, including a federal government shutdown and sequestration cuts, while continuing to bring significant and impactful cases and collect in each and every year several times the office budget in fines, civil judgments and forfeitures from crime proceeds.
Under his leadership, the office negotiated an agreement to reform the Cleveland Division of Police, with emphasis on better use-of-force policies, more training, increased accountability, supervision and more robust community engagement. It also entered into voting rights agreements that for the first time ever resulted in bilingual ballots in Lorain and Cuyahoga Counties in order to comply with Section 4(e) of the Voting Rights Act.
He also brought together a diverse group of stakeholders – hospitals, doctors, law enforcement, treatment professionals, people in recovery and others – to attempt to find a comprehensive solution to the district’s heroin and opioid epidemic. That approach has become a national model replicated throughout the country including Atlanta, Minneapolis, Maine and New Mexico.
Among the cases prosecuted under Dettelbach:
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Human trafficking convictions against more than 40 defendants including Jeremy Mack, the Elyria man sentenced to life in prison for trafficking drug-addicted women and girls, and Jessica Hunt and Jordie Callahan, sentenced to 32 and 30 years in prison, respectively, for holding a woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor.
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U.S. v. Antun Lewis, twice convicting the defendant now serving 35 years in federal prison for setting the deadliest house fire in Cleveland history, which killed eight children and one adult.
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More than 1,000 firearms indictments filed against often violent felons during his time in office, one of the leading offices in the nation in that regard.
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U.S. v. Randolph Linn, an Indiana man now serving 20 years in prison for driving to Ohio to set fire to the largest mosque in the Toledo area.
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Five indictments using death-specification enhancements for people who sold heroin that directly contributed to a fatal overdose.
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The indictments and convictions in U.S. v. Samuel Mullet et al. on charges of hate crimes based on five violent religiously based attacks on Amish victims, which were reversed based on a jury instruction error, and witness tampering which resulted in significant prison sentences for all 16 defendants.
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Successfully prosecutions for fraud and bribery, one of which he personally tried, involving the collapse of the St. Paul Croatian Federal Credit Union, the largest credit union failure in United States history.
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U.S. v. Kevin Dye, another case personally tried by Dettelbach resulting in the conviction and 60-year prison sentence of a violent felon for firebombing the Mansfield Courthouse and City Hall.
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U.S. v. Schatz: William B. Schatz, the general counsel of the Northeast Ohio Regional Sewer District, took bribes totaling approximately $682,130 from Robert J. Kassouf, a contractor on NEORSD’s Mill Creek Tunnel project. Stanley Lojek was an intermediary for the bribes. Schatz also embezzled approximately $166,940 from the NEORSD. Schatz was sentenced to nearly six years in prison, Kassouf was sentenced nearly five years in prison and Lojek was sentenced to one year in prison.
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U.S. v. Alatrash: Faisal Alatrash, a project superintendent for the Greater Cleveland Regional Transit Authority, was sentenced to more than eight years in prison following his trial for taking bribes from contractors and steering work to his wife’s cleaning company.
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U.S. v. Ugochukwu: Christopher Ugochukwu is serving a 26-year prison sentence for leading an organization that brought heroin from Nigeria, Mexico, and Colombia and sold it throughout Greater Cleveland. Authorities seized more than 20 kilograms of heroin in 2010, believed to be the largest heroin seizure in Ohio history. Twenty-three people were convicted of crimes for their roles in the operation.
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U.S. v. Ricks: Keith Ricks, the leader of a group that brought large shipments of heroin from Atlanta and Chicago and sold it around the East Side of Cleveland, was sentenced to life in prison. A jury found that Ricks led a conspiracy that included scores of people, robbed rival drug dealers and used violence to control the sale of heroin in the neighborhood around St. Clair Avenue and East 117th Street. Nearly 60 people were convicted in the case.
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U.S. v. Wright, et al.: Douglas Wright, Brandon Baxter, Anthony Hayne, Connor Stevens, and Joshua Stafford convicted for the attempted use of a weapon of mass destruction for their efforts to blow up the Route 82 bridge that spans the Cuyahoga Valley National Park. Wright was sentenced to 11 years in prison, Baxter to nearly 10 years, Hayne to six years, Stevens to eight years and Stafford to 10 years in prison.
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U.S. v. Akl, et al: Hor and Amela Akl, a married couple in Toledo, were caught attempting to send $200,000 in cash to Hizbollah in Lebanon that was to be concealed in the side panel of the door of a car that was to be shipped to Lebanon. Hor Akl was sentenced to more than six years in prison and Amera Akl was sentenced to more than three years in prison.
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ISIL cases: Amir Al-Ghazi, of Sheffield Lake, was indicted on charges of providing material support to Islamic State of Iraq and the Levant (ISIL), as well as firearms and narcotics violations. Al-Ghazi is alleged to have pledged his support to ISIL via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the U.S. and attempted to purchase an AK-47 assault rifle. Terrance McNeil, of Akron, was indicted for with soliciting the murder of members of the U.S. military. McNeil professed his support on social media on numerous occasions for ISIL and encouraged ISIL sympathizers to behead and stab members of the military in the U.S. Both cases are pending.
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U.S. v. Persaud: Westlake cardiologist Dr. Henry Persaud was sentenced to 20 years in prison for performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $29 million.
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U.S. v. Hazelwood, et al.: Nine people were convicted in one of the largest Internet pill diversion cases in the country and the first in the district. The case involved Hazelwoood and other doctors prescribing and dispensing hundreds of thousands of pills to people who contacted them via web sites Hazelwood controlled.
Dettelbach previously served for 12 years as a career federal prosecutor. During those years, he worked at the Department of Justice, Civil Rights Division, Criminal Section; U.S. Attorneys Offices in Maryland and Washington, D.C.; and from 2003 to 2006 in the Northern District of Ohio, as a member of the Organized Crime and Corruption Strike Force. As a line federal prosecutor, Dettelbach handled numerous high-profile cases, including public corruption and bribery cases such as U.S. v. Nate Gray and U.S. v. Emmanuel Onunwor, the prosecution of numerous corrupt officials and businesspeople involving the Cleveland Water Department, and U.S. v. Litten, a multimillion dollar bankruptcy fraud in Maryland. He also won convictions in what was, at the time, the largest human trafficking case ever brought in the United States, in which approximately 70 Thai women were held against their will and forced to work in El Monte, California.
Dettelbach is one of only five U.S. Attorneys to be appointed to the Attorney General’s Advisory Council by both Attorneys General Eric Holder and Loretta Lynch. Dettelbach chaired the subcommittee on Civil Rights during the entire length of his service as United States Attorney, tying him as the longest serving Subcommittee Chair of any United States Attorney in the Administration.
Dettelbach also was detailed to serve as Counsel for the United States Senate Committee on the Judiciary from 2001 to 2003. Dettelbach was previously a partner at the law firm of Baker & Hostetler, LLP.
Dettelbach graduated from Dartmouth College in 1988 and from Harvard Law School in 1991. He lives in Solon, Ohio with his wife and two children.
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Two San Jose Men Sentenced to Prison for Posting Information About A Minor Online to Solicit Sex CustomersRead the Press Release
SAN JOSE- Two San Jose residents were sentenced to approximately five years in prison yesterday for posting information about a minor under the age of 16 on the Internet in order to solicit prostitution customers, announced Acting United States Attorney Brian Stretch and FBI Special Agent in Charge David Johnson. Justin Everett Crutchfield was sentenced to 57 months’ imprisonment and Demontae Terrell Toliver was sentenced to 60 months’ imprisonment for their respective roles in posting information about the minor online for the purpose of making her available for prostitution. A sentence of 60 months’ imprisonment is the maximum sentence allowed by the statute of conviction.
Crutchfield, 28, and Toliver, 24, both of San Jose, pleaded guilty on July 20, 2015, to a superseding information charging them with use of the internet to post information about a minor for sexual activity. According to the defendants’ plea agreements, Crutchfield and Toliver admitted that on June 18, 2013, they posted a telephone number and sexually suggestive photographs of the minor on the now-shuttered Internet site myRedbook.com. The posting was made with the intent to solicit others to pay to engage in sexual activity with the minor. At the time of his arrest, Crutchfield was employed as a Peer Health Counselor with the Santa Clara County Department of Mental Health.
Crutchfield and Toliver were indicted by a federal grand jury on January 29, 2014. They were charged with two counts of sex trafficking of a minor, in violation of 18 U.S.C. §1591, and two counts of production of child pornography, in violation of 18 U.S.C. § 2251(a). Pursuant to the plea agreement, both Crutchfield and Toliver pleaded guilty to a superseding information charging a single count of use of an interstate wire to transmit information about a minor for criminal sexual activity, in violation of 18 U.S.C. § 2425.
The sentence was handed down by the Honorable Ronald M. Whyte, U.S. District Judge. Judge Whyte also sentenced each defendant to a 7-year period of supervised release and ordered each to pay $2000 in restitution to their minor victims. Both men also will be required to register as sex offenders under federal and state law. Toliver, who has been in custody since his arrest in February 2014, will begin serving the sentence immediately. Crutchfield, who had been released to home confinement on $150,000 bond, was ordered to self-surrender on or before March 17, 2016.
Assistant U.S. Attorney Amie Rooney prosecuted the case with the assistance of Laurie Worthen. The prosecution is the result of a joint investigation by the San Jose Police Department Human Trafficking Task Force and the FBI. The arrest and prosecution of these individuals was part of the FBI and San Jose Police Department’s increased efforts and cooperation in rooting out instances of human trafficking in Santa Clara County and the greater Bay Area.
Anyone who suspects instances of human trafficking are encouraged to call the FBI or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
In addition, suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
Two Maryland Residents Indicted for Conspiracy to Steal Firearms in Waynesboro, PennsylvaniaRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has indicted Rodney Robinson, age 30, and Amber Crummitt, age 33, of Boonsboro, Maryland for conspiracy to steal firearms from a federal firearms licensee along with other related charges.
According to U.S. Attorney Peter Smith, Robinson and Crummitt allegedly drove from Maryland to the Walmart in Waynesboro, Pennsylvania on October 22, 2015. Robinson entered the store, forced open the gun case, removed five rifles, and left with the rifles in a car driven by Crummitt. On October 27, 2015, the pair returned to the same store and Robinson again allegedly forced open the gun case removing a rifle and a shotgun; however, this time Robinson left the store without the firearms when an alarm activated.
The indictment charges Crummitt and Robinson with conspiracy to steal firearms, theft of firearms, transportation of stolen firearms across state lines, possessing and disposing of stolen firearms, and possession of firearms by felons.
Robinson is currently in custody on unrelated charges. The U.S. Attorney’s Office will request a summons to be issued for Crummitt to appear in federal court in Harrisburg at a designated time.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms, and Explosives and the Pennsylvania State Police. The case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
If convicted of all counts, under federal law, Robinson and Crummitt face respective maximum penalties of 65 and 55 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Maryland Men Plead Guilty to Federal Charges for Roles in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
Worked with Others to Seek More Than $700,000 in Fraudulent Refunds
Two Maryland residents pleaded guilty today for their involvement in a far-reaching stolen identity refund fraud scheme in which they worked with others to seek over $700,000 in income tax refunds through the filing of fraudulent federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Michael Whittaker, 31, of Cumberland, Maryland, and Wayne Gardner, 49, of Capitol Heights, Maryland, are among approximately 18 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. The two men pleaded guilty to one count of conspiracy to commit theft of public money and one count of theft of public money.
The charges carry statutory maximum prison terms of five years and 10 years, respectively, as well as potential financial penalties. As part of the plea agreements, Whittaker and Gardner agreed to pay restitution to the IRS in the amounts of $397,090 and $158.160, respectively, which represent that value of the U.S. Treasury checks that were negotiated as a result of their conduct. U.S. District Judge Ellen S. Huvelle set sentencing for May 18.
According to the government’s evidence, Whittaker and Gardner participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people, whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, Whittaker and Gardner obtained the means of identification of third parties, including names and social security numbers and provided them to a co-conspirator for use in the preparation of fraudulent income tax returns. Whittaker admitted to providing 21 means of identification from August 2010 to May 2012. He also permitted various residential addresses that he controlled to be used as purported taxpayer addresses for the delivery of tax refund checks and deposited U.S. Treasury checks that were received as part of this scheme into his bank accounts. Gardner admitted to providing 65 means of identification to a co-conspirator between August and December 2010. Whittaker admitted that he was involved in the filing of 135 fraudulent tax returns that sought refunds of approximately $494,902. Gardner admitted that he was involved in the filing of 116 fraudulent tax returns that sought refunds of approximately $299,984.
The fraudulent tax returns that were filed as part of the scheme included Schedules C or C-EZ that falsely claimed that each “taxpayer” operated a business, such as “barber” or “childcare,” as a sole proprietorship. The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme.
In announcing the pleas, Acting Assistant Attorney General Ciraolo, U.S. Attorney Phillips, Special Agent in Charge Jankowski, Inspector in Charge Kelokates and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Two Maryland Men Plead Guilty to Federal Charges for Roles in Massive Identify Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – Two Maryland residents pleaded guilty today for their involvement in a far-reaching stolen identity refund fraud scheme in which they worked with others to seek over $700,000 in income tax refunds through the filing of fraudulent federal income tax returns, announced U.S. Attorney Channing D. Phillips of the District of Columbia, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Michael Whittaker, 31, of Cumberland, Maryland, and Wayne Gardner, 49, of Capitol Heights, Maryland, are among approximately 18 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. The two men pleaded guilty to one count of conspiracy to commit theft of public money and one count of theft of public money.
The charges carry statutory maximum prison terms of five years and 10 years, respectively, as well as potential financial penalties. As part of the plea agreements, Whittaker and Gardner agreed to pay restitution to the IRS in the amounts of $397,090 and $158,160, respectively, which represent that value of the U.S. Treasury checks that were negotiated as a result of their conduct. U.S. District Judge Ellen S. Huvelle set sentencing for May 18, 2016.
According to the government’s evidence, Whittaker and Gardner participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people, whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, Whittaker and Gardner obtained the means of identification of third parties, including names and social security numbers and provided them to a co-conspirator for use in the preparation of fraudulent income tax returns. Whittaker admitted to providing 21 means of identification from August 2010 to May 2012. He also permitted various residential addresses that he controlled to be used as purported taxpayer addresses for the delivery of tax refund checks and deposited U.S. Treasury checks that were received as part of this scheme into his bank accounts. Gardner admitted to providing 65 means of identification to a co-conspirator between August and December 2010. Whittaker admitted that he was involved in the filing of 135 fraudulent tax returns that sought refunds of approximately $494,902. Gardner admitted that he was involved in the filing of 116 fraudulent tax returns that sought refunds of approximately $299,984.
The fraudulent tax returns that were filed as part of the scheme included Schedules C or C-EZ that falsely claimed that each “taxpayer” operated a business, such as “barber” or “childcare,” as a sole proprietorship. The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme.
In announcing the pleas, U.S. Attorney Phillips, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Jankowski, Inspector in Charge Kelokates, and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Two Colorado Men Plead Guilty to Production of Child Pornography in Separate Unrelated CasesRead the Press Release
DENVER – Two Colorado men recently pled guilty to the production of child pornography, with the produced videos and images involving children who were 4 weeks old (United States v. Sailas) and 3 to 7 years old (United States v. Gallegos) in each respective case, the U.S. Attorney’s Office, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Federal Bureau of Investigation (FBI) announced. The two men were prosecuted in unrelated cases.
Jamie Sailas, age 30, of Metro Denver, pled guilty on January 15, 2016 to the production of child pornography before U.S. District Court Judge William J. Martinez. Sailas is scheduled to be sentenced by Judge Martinez on April 28, 2016 at 9:30 a.m. According to the stipulated facts contained in the defendant’s plea agreement, Sailas came to law enforcement attention when an HSI agent working in Washington, DC conducted a proactive undercover investigation upon an Internet website that hosted chat rooms. Users of these chat rooms have the ability to upload content to the chat room in the form of pictures and video. While conducting the investigation, the HSI agent came across a link to a video that depicted an adult male engaging in intercourse with a minor female. The investigation led the agent to specific subscriber information which had been submitted to the National Center for Missing and Exploited Children (NCMEC) by the Internet Service Provider. The link was associated with an online storage account that belonged to Jamie Sailas, who at the time resided in Brighton, Colorado. There were nearly 2,900 uploaded file names associated with Sailas’s online storage account, consistent with file names of videos containing child pornography. An email account associated with the online storage account was also determined to belong to Sailas. During the investigation, the local HSI agent learned that two additional NCMEC reports had been generated regarding Sailas, one which involved the email address associated with the online storage account. A legal search of the defendant’s email account reflected that Sailas used the account to send or receive approximately 5500 images and 240 videos of child pornography. The material included minors as young as infants, with a large majority of content depicting prepubescent minor females. It was ultimately determined that in addition to living in Brighton, the defendant worked at Game Trader in Brighton. Search warrants were executed for Sailas’s home, workplace, and vehicle in November 2014. Numerous electronic devices belonging to Sailas were recovered during the execution of the search warrants. During the forensic examination of the electronic devices recovered during the search warrants, numerous images and videos depicting child pornography were recovered, including an image of child pornography that was recovered from one of Sailas’s cell phones. The image of child pornography depicted a penis in the mouth of an approximately 4-week-old infant. The image was taken by Sailas. The defendant had access to the infant because he was a friend of the child’s mother.
Luis Alfonso Aragon Gallegos, age 29, of Glenwood Springs, Colorado, pled guilty on January 13, 2016 to the production of child pornography and to the possession of child pornography before U.S. District Court Judge R. Brooke Jackson. Gallegos is scheduled to be sentenced by Judge Jackson on April 20, 2016 at 8:30 a.m. According to the stipulated facts contained in Gallegos’ plea agreement, the defendant produced approximately 110 images and/or videos of a Colorado child while she performed sex acts on him. The child was between 3 and 7 years old when the images and videos were created. In addition, approximately 266,000 images and 16,100 videos of child pornography, which did not involve the Colorado child and were not produced by the defendant, were found on the defendant’s hard drives. The majority of these files were of prepubescent children, including infants, who were recorded either nude in a sexually provocative manner or engaged in a sex acts. Further, the files involving the Colorado child showed that sexual assaults occurred on 22 days, sometimes in multiple settings during the day. During a child forensic interview, the Colorado child said that the defendant’s conduct continued until he was arrested in 2015. Gallegos also shared child pornographic images peer-to-peer.
“Children were victimized in this case in an unspeakable way,” said U.S. Attorney John Walsh. “Thanks go to Homeland Security and FBI agents, along with federal prosecutors, whose hard work identified and apprehended the defendants of this terrible crime.”
“For good reason, there are significant penalties for predators convicted of sexually exploiting children,” said David A. Thompson, special agent in charge of HSI Denver. “Jamie Sailas faces at least 15 years in federal prison after admitting he produced child pornography. Homeland Security Investigations conducts these child sexual exploitation investigations to obtain justice for their victims, and remove these predators from decent society so they can’t harm other innocent children.”
"The FBI will continue to aggressively pursue those like Gallegos who prey on children, especially those who advertise, trade, and/or produce child pornography," said FBI Denver Special Agent in Charge Thomas Ravenelle. "Crimes of this nature threaten to destroy our most precious resource, offend every sensibility, and cannot be tolerated. The FBI and our partners will spare no expense or resource to bring them to justice."
Sailas pled guilty to one count of production of child pornography, which carries a penalty of not less than 15 years, and up to 30 years in federal prison, and up to a $250,000 fine. Gallegos pled guilty to 22 counts of production of child pornography, each of which also carries a penalty of not less than 15 years, and up to 30 years in federal prison, and up to a $250,000 fine per count. He also pled guilty to one count of possession of child pornography, which carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine.
Jamie Sailas was investigated by HSI with assistance from the Brighton Police Department. Sailas was prosecuted by Assistant U.S. Attorney Alecia Riewerts. Luis Alfonso Aragon Gallegos was investigated by the FBI with assistance from the Garfield County Sheriff’s Office, the 9th Judicial District Attorney’s Office, and the Glenwood Springs Police Department. Gallegos was prosecuted by Assistant U.S. Attorney David Tonini.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tragic Accident Takes the Life of Retired Former Prosecutor and WifeRead the Press Release
OXFORD, Miss. - United States Attorney Felicia C. Adams announces that: The United States
Attorney’s Office for the Northern District of Mississippi is deeply saddened over the loss of Al
and Becky Moreton. Al served our office and the entire legal community with great distinction
and honor. The Moretons were stalwart members of Oxford’s community and will be sorely
missed.
Al Moreton was legendary in the legal profession. He was a prosecutor’s prosecutor. He was
greatly respected throughout the Department of Justice. In recognition of his exemplary service
the Department of Justice once stated:
Mr. Moreton, during his career of 38 years, has epitomized what we as the lawyers
for the United States should follow as our guiding example. Al Moreton has left an
indelible mark on those with whom he has worked, done with strokes of politeness,
humor and goodwill but most of all with brilliance, integrity and humility.
Al’s impact upon the U. S. Attorney’s Office here in Oxford is immeasurable. We have heavy
hearts today. We have lost a great mentor and an even greater friend.
Trader Pleads Guilty to Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – Igor Dubovoy, 28, Alpharetta, Georgia, today admitted his role in an international scheme to hack into three business newswires and steal yet-to-be published press releases containing non-public financial information that was then used to make trades that allegedly generated approximately $30 million in illegal profits, New Jersey U.S. Attorney Paul J. Fishman announced.
Igor Dubovoy pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count One of an indictment charging him with conspiracy to commit wire fraud. He was arrested on Aug. 11, 2015, in connection with a federal indictment brought by the District of New Jersey (DNJ) charging five individuals – two computer hackers and three securities traders – in a large-scale, international conspiracy to hack and steal press releases containing confidential nonpublic financial information relating to hundreds of companies traded on the NASDAQ and NYSE from three newswires.
In addition to Igor Dubovoy, the 23-count DNJ indictment charges Ivan Turchynov, 27, Oleksandr Ieremenko, 24, and Pavel Dubovoy, 32, all of Ukraine, and Arkadiy Dubovoy, of Alpharetta, Georgia. The defendants are all charged with wire fraud conspiracy, securities fraud conspiracy, wire fraud, securities fraud, and money laundering conspiracy. Additionally, Ivan Turchynov and Oleksandr Ieremenko are charged with computer fraud conspiracy, computer fraud, and aggravated identity theft.
The Eastern District of New York (EDNY), in a related indictment charged four securities traders: Vitaly Korchevsky, 50, of Glen Mills, Pennsylvania, Vladislav Khalupsky, 45, of Brooklyn, New York and Odessa, Ukraine, Leonid Momotok, 47, of Suwanee, Georgia, and Alexander Garkusha, 47, of Cummings and Alpharetta, Georgia. The EDNY defendants are charged with wire fraud conspiracy, securities fraud conspiracy, securities fraud, and money laundering conspiracy. On Dec. 21, 2015, Alexander Garkusha pleaded guilty to Count One of the EDNY indictment, charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Between February 2010 and August 2015, Turchynov and Ieremenko, computer hackers based in Ukraine, gained unauthorized access into the computer networks of Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire. They used a series of targeted cyber-attacks, including “phishing” attacks and SQL injection attacks, to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material financial information.
At one point, one of the hackers sent an online chat message in Russian to another individual stating, “I’m hacking prnewswire.com.” In another online chat, Ieremenko told Turchynov that he had compromised the log-in credentials of 15 Business Wire employees.
The hackers shared the stolen releases with the traders using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use the overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. In an email, which was sent by one of the traders, the instructions for accessing the overseas server suggested that users conceal their Internet Protocol address when accessing the server as a precaution to avoid detection. For traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases for publicly traded companies from Marketwired and PRN for publicly traded companies. Trading data obtained over the course of the investigation showed that, after the shopping list was sent, the traders and others traded ahead of several of the press releases listed on it.
The traders generally traded ahead of the public distribution of the stolen releases, and their trading activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared the releases and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release.
The traders traded on stolen press releases containing material nonpublic information about the following publicly traded companies that included, among hundreds of others: Align Technology, Inc.; Caterpillar Inc.; Hewlett Packard; Home Depot; Panera Bread Co.; and Verisign, Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
At today’s plea hearing, Igor Dubovoy admitted that when he and others purchased stolen press releases from the computer hackers operating in Ukraine, he knew they contained earnings announcements for publicly trading companies that had not yet been made public. Igor Dubovoy also admitted that he sent the releases to Korchevsky so that he could review them and determine which trades would be profitable based on the stolen material information.
Based on Korchevsky’s recommendations, Igor Dubovoy then executed trades using a number of different brokerage accounts in his name and in Arkadiy Dubovoy’s name, as well as any entities they owned. He also admitted that he provided the hackers with access to at least one trading account held by Arkadiy Dubovoy so that they could confirm how much money was being made from the stolen information. According to Igor Dubovoy, the hackers were paid 50 percent of any profits made in the stock market based on the stolen press releases they provided.
The maximum potential penalties for Count One, conspiracy to commit wire fraud, is 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Acting Special Agent in Charge Kenneth Pleasant, with the ongoing investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Andrew S. Pak, Daniel Shapiro, David M. Eskew, and Nicholas Grippo of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, Assistant U.S. Attorney Svetlana M. Eisenberg of the General Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
Defense counsel: Lawrence S. Lustberg, Esq., Mary Frances Palisano, Esq., Gibbons PC
Thai National Indicted in Alleged Immigration Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence, R.I., returned a 26-count indictment on Tuesday charging Nimon Naphaeng, 34, a native and citizen of Thailand, who currently resides in Wakefield, R.I., with allegedly running an immigration fraud scheme which allegedly included the filing of false asylum applications on behalf of individuals who did not request nor authorize the applications.
The indictment is announced by United States Attorney Peter F. Neronha and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
According to the indictment and information presented to the court, it is alleged that between January 2014 and December 2015, Naphaeng advertised on the Internet and in flyers posted at various businesses that he could assist Thai nationals with obtaining an Employment Authorization Document (EAD) card, and, as a result, further government benefits such as a social security number, a driver’s license and, if they qualify, other financial benefits. It is alleged that Naphaeng, without the consent of the applicants, used personal information they provided to him to secure an EAD card to instead file asylum applications in their names. It is alleged that the applicants did not know that Naphaeng was filing asylum claims in order to secure EAD cards.
In order to qualify for asylum, an applicant must establish that they cannot return to their native country based upon persecution or a well-founded fear of persecution on account of race, religion, nationality, membership in a particular social group, or political opinion. The applicant must personally sign the application and swear under penalty of perjury that the information is true and correct. An initial asylum application grants the applicant certain benefits while their application is pending, including the issuance of an EAD card.
Nationwide, Thai nationals historically file less than 20 asylum applications each year. According to information presented to the court, this investigation began in January 2015, when immigration officials observed a surge of citizens from Thailand submitting asylum applications. A significant number of the applications allegedly shared the defendant’s home or work address. It is alleged that a review of more than 260 of these asylum applications contained virtually identical asylum claims, factual scenarios and supporting documents.
The indictment returned on Tuesday charges Nimon Naphaeng with seven counts of mail fraud, eight counts of visa fraud, ten counts of aggravated identity theft and one count of international money laundering. The government is also seeking the forfeiture of $279,550 seized from Naphaeng, monies allegedly realized by Naphaeng in the execution of the scheme.
An indictment is merely an allegation 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.
Naphaeng, who was arrested on a criminal complaint on December 22, 2105, is detained in federal custody. A federal arrest warrant was obtained based on information developed by agents investigating this matter that Naphaeng was allegedly planning to leave the United States.
The matter was investigated by Homeland Security Investigations, with substantial assistance from the U.S. Citizenship and Immigration Services - Fraud Detection National Security Asylum Office, Newark, N.J., and the Warwick, R.I., Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Richard W. Rose and Mary E. Rogers.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Texas Man Sentenced to 84 Months in Prison for Role in Large-Scale Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Texas man has been sentenced by U.S. District Judge Ralph R. Beistline to serve 84 months in prison for his role in a conspiracy to sell large quantities of heroin and methamphetamine to Alaska-based drug dealers.
Omar Alejandro Alfaro, 37, of Texas, previously pled guilty to conspiring with others to distribute heroin and methamphetamine. As part of his guilty plea, Alfaro admitted that he personally delivered large quantities of drugs to Alaska-based co-conspirators who then transported the drugs to Anchorage for distribution. Alfaro admitted working with co-conspirators both in the United States and in Mexico.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, the conspiracy began in January 2013 and continued until October 2014. During that time, conspirators imported a total of 12 kilograms of heroin and two pounds of methamphetamine into the United States from Mexico.
As part of his guilty plea, Alfaro admitted personally delivering both heroin and methamphetamine on multiple occasions. In March 2014, for example, Alfaro delivered approximately one kilogram of heroin to an undercover DEA agent posing as an Alaska-based drug dealer. Several months later, in June 2014, Alfaro again delivered drugs to the undercover agent – this time, he delivered approximately 2.5 kilograms of heroin and 866 grams of actual methamphetamine. During the exchange, the undercover agent provided Alfaro with an Alaska themed t-shirt that had been requested by Alfaro’s Mexico-based co-conspirator.
During the sentencing hearing, Judge Beistline noted the devastating consequences that heroin and methamphetamine have on individuals and was particularly concerned about the significant quantity of drugs for which Alfaro was personally responsible. In sentencing Alfaro, Judge Beistline also emphasized the need for deterrence and the need to reinforce societal norms.
The sentencing hearing is related to a string of indictments returned in late 2014 and early 2015 as part of ongoing efforts to dismantle and prosecute several large scale drug trafficking rings with ties to Alaska, California, Texas, Arizona, and Mexico. To date, the following individuals have been sentenced as part of these efforts:
- Timothy Alex, an Anchorage drug distributor, previously sentenced to 108 months in prison;
- Daniel Harris, an Anchorage drug distributor, previously sentenced to 135 months in prison;
- Jose Ramon Canales, of Texas, previously sentenced to 70 months in prison for laundering drug money out of the United States and into Mexico;
- Genaro Gutierrez-Reyes, of California, previously sentenced to 18 months in prison for laundering drug money out of the United States and into Mexico;
- Jorge Armando Zaragoza-Soto, of Mexico, previously sentenced to 96 months in prison for drug trafficking;
- Geronimo Arellano Velarde, of California, previously sentenced to 120 months in prison for drug trafficking; and
- Tomas Gutierrez Ayala, of California, previously sentenced to 75 months in prison for drug trafficking.
Several other defendants are set to be sentenced in the coming months for their roles in trafficking heroin, cocaine, and methamphetamine to Alaska and then transporting the cash proceeds of their trafficking activities back to Mexico.
This and the related cases were investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). In announcing the sentence, U.S. Attorney Loeffler praised the work of the law enforcement agencies involved, including the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Anchorage Police Department (APD), the Alaska State Troopers (AST), and the Anchorage Airport Police Department. Additional assistance was provided by the U.S. Attorney’s Offices for the Western District of Texas, the Eastern and Central Districts of California, and the District of Arizona, as well as federal agents in all three states.
Texas Man Indicted for Federal Tax CrimesRead the Press Release
An Austin, Texas, businessman was indicted by a federal grand jury for five counts of filing false tax returns and one count of corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the superseding indictment, Victor Antolik owned and operated a commercial janitorial business in Austin, San Antonio and Houston, Texas, for which he used a variety of business names, including Diversified Building Services Inc., DBS Services Inc., Partners in Cleaning, PIC Building Services and BSI Industries. Antolik also earned income as a real estate agent, real estate broker and property manager. Antolik earned a portion of his real estate income through his companies SGN Realty Inc. and Signature Realty Services. For the tax years 2004, 2007 and 2008, Antolik submitted to the Internal Revenue Service (IRS) a total of four false individual income tax returns on which he underreported his income. In addition, between 1998 and 2014, Antolik attempted to obstruct the IRS by, among other things, attaching altered Forms W-2 and 1099 to his tax returns, providing false information to his accountants that was used to prepare both corporate and individual income tax returns on his behalf, and using nominees to conceal income and assets.
If convicted, for each count, Antolik faces a statutory maximum sentence of three years in prison, a maximum fine of $250,000 and restitution to the IRS.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guiltly beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked agents of the IRS-Criminal Investigation, who are investigating the case and Tax Division Trial Attorneys Robert A. Kemins and David Zisserson, who are prosecuting the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Western District of Texas for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tax Return Preparer Pleads GuiltyRead the Press Release
PHLADELPHIA - Carmen Basilis, 52, of Reading, Pennsylvania, pleaded guilty yesterday to tax fraud charges admitting that she had falsified miscellaneous deductions on her clients’ tax returns in order to obtain inflated tax refunds which her clients where not entitled to receive. U.S. District Court Judge James Knoll Gardner scheduled a sentencing hearing for May 5, 2016.
In lieu of receiving United States Treasury Checks, Basilis’ clients applied for Refund Anticipation Loans which permitted them to receive a loan from a bank within several days following the filing of their returns. By executing IRS Form 8888, Basilis caused a portion of the filer’s refund to be deposited into her personal bank account, a fact not known by her clients. After doing so, Basilis issued the Refund Anticipation Loan checks to her clients. The IRS, in turn, sent the bank the refund that Basilis had requested from the United States Treasury, to pay off the loans that the filers had been issued. In addition to taking a portion of the filer’s refund, Basilis also charged her clients a fee for preparing and electronically filing the returns with the Internal Revenue Service.
The case was investigated by IRS Criminal Investigations and was prosecuted by Assistant United States Attorney Floyd J. Miller.
Tampa Man Sentenced to Federal Prison for Manufacturing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – Senior United States District Judge Henry Lee Adams has sentenced Darius Jondi Edwards (36, Tampa) to 33 months in federal prison for manufacturing counterfeit Federal Reserve notes. As part of his sentence, the Court ordered Edwards to pay restitution to the various businesses that he had defrauded.
According to court documents, Edwards used computer media to manufacture counterfeit Federal Reserve notes in denominations of $10, $20, and $100, then provided them to his co-defendant, Timothy Deante Burroughs. During the same period, Burroughs and Edwards entered various businesses in Jacksonville and passed counterfeit $100 bills. On December 1, 2014, Burroughs entered a Publix and passed counterfeit cash. Upon being confronted by store employees, he fled on foot. Officers from the Jacksonville Sheriff’s Office soon located Burroughs at a nearby motel and detained him. A search of the motel room resulted in the recovery of additional counterfeit $100 bills and led law enforcement to another motel in the immediate vicinity.
At the second location, law enforcement encountered Edwards in front of a motel room. During a search of his room, officers located sheets of uncut counterfeit $100, $20, $10, $1 bills, along with several bleached genuine $10 bills printed as counterfeit $100 notes. They also recovered multiple computers and printers being used by Edwards to manufacture counterfeit currency.
On December 20, 2015, Burroughs was sentenced to 21 months in federal prison for his role in the case. As part of his sentence, the Court ordered Burroughs to pay restitution to the various businesses that he had defrauded.
This case was investigated by the Jacksonville Sheriff’s Office and the United States Secret Service, Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Sex Trafficking Ring Leader Gets Life in Federal PrisonRead the Press Release
HOUSTON – The 68-year-old woman behind a 14-defendant sex trafficking ring operating in Houston has been ordered to federal prison for life, announced U.S. Attorney Kenneth Magidson along with FBI Special Agent in Charge Perrye K. Turner, Special Agent in Charge Brian Moskowitz of Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HSI), and Special Agent in Charge Richard Goss of IRS-Criminal Investigation (CI).
A federal jury convicted Hortencia Medeles-Arguello aka Raquel Medeles Garcia, Raquel Medeles Garcia or “Tencha,” April 24, 2015, following a 10-day trial and approximately four hours of deliberations. She was convicted on all counts - conspiracy to commit sex trafficking, conspiracy to harbor aliens, aiding and abetting to commit money laundering and conspiracy to commit money laundering.
This landmark sex trafficking case is one of the most significant in scope and magnitude to be tried to a verdict of guilty on all counts, and one of the few in which as many as 12 victims of an international sex trafficking scheme came forward to testify at trial. Twelve victims rescued in connection with this case testified at trial regarding the horrors of their ordeals, beginning with being recruited in their home countries, only to be forced into prostitution against their will in the United States. Some victims were as young as 14 when the traffickers recruited them, using fraud and false pretenses to lure them into the traffickers’ control.
“The importance of this case cannot be underscored,” said Magidson. “These were human beings – women and children – who were treated as a commodity. They came from their home countries hoping for a better life, only to be enslaved and forced into unspeakable acts. This is a local, national and international issue, but also a humanitarian issue. We will continue to take action against these egregious offenders and seek to obtain the stiffest penalties in order to send a clear message that human trafficking will not be tolerated in this district.”
Today, U.S. District Judge David Hittner, who presided over the trial, handed Tencha a sentence of life in federal prison. At the hearing, additional testimony from six of the victims was also presented. They asked the judge to punish the defendant for the impact she had on their lives.
In addition, 15 real properties and other assets for a value of about $2.5 million will be forfeited to the United States having been found to have been purchased with sex trafficking proceeds. The funds will be used to make restitution to the victims of this horrible crime.
“Let this sentence send a message that lives are not to be bought and sold,” said Turner. “The Human Trafficking Rescue Alliance (HTRA) seeks to rescue those forced into this modern day slavery and hold accountable those who wish to profit from the abuse of others. If you have information about human trafficking, we urge you to contact the National Human Trafficking Hotline at 1-888-373-7888.“
“Investigations and the subsequent criminal prosecution like this one highlight the significant collective and collaborative efforts of law enforcement agencies in greater Houston that are involved in the fight against human trafficking,” said Moskowitz. “This should also serve as a warning to all individuals and criminal groups involved in the trafficking of minors and women that we are determined to expend the resources necessary to investigate and prosecute to the full extent of the law all that are involved in this heinous crime.”
Testimony revealed that pimps recruited the young girls by convincing them they were in love, making threats to their families as well as threatening the girls themselves. Testimony revealed Tencha knew that many of the girls prostituted at her establishment were either underage or victims of the beatings by their pimps.
On the first full day of trial, the jury heard from one of the victims in the case. She detailed the horrific conditions she faced at the hands of the defendant and others, to include being forced into having sex at age 14 after she had come to this country in search of a better life. She described how she was forced to comply with demands at gunpoint and locked in a room. She was eventually impregnated by a “customer” and was moved to another area of the bar because she was not worth as much once she became pregnant. Following the move, she found a way to escape with the help of a customer who had befriended her.
“Today’s sentencing closes the book on a heinous criminal organization that profited from exploiting innocent women and minors in the worst possible way,” said Goss. “IRS special agents are committed to dismantling the financial infrastructure of criminal enterprises of this nature and removing any financial incentive to exploit innocents.”
Evidence at trial indicated that Tencha made more than $1.6 million in a 19-month period by supplying the upper floor of her cantina for prostitutes to ply their trade. The evidence further revealed that many of the prostitutes were either minors or forced to engage in sex acts at the defendant’s bar. The jury heard that Tencha had engaged in harboring illegal aliens, many who were forced into prostitution for more than 13 years.
She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
All of Tencha’s co-defendants who were in custody have pleaded guilty for their respective roles in the conspiracy. Many admitted they worked for Las Palmas II, a cantina located in Houston. They all knew the cantina concealed, harbored and shielded illegal aliens who worked there from detection by law enforcement and that the owners were profiting from such concealment. As part of their employment, they aided in the operation of the business and their conduct substantially facilitated the concealment, harboring and shielding of the employees and patrons of the Las Palmas II, whom they all knew were illegally in the U.S. Other co-defendants pleaded guilty to helping Tencha keep track of the monies she made, including investing it in properties she purchased in the Houston area.
Abel Medeles aka Chito, 67, Tencha’s brother, operated the Las Palmas II parking lot. It was part of his job to notify his co-conspirators inside the cantina of any law enforcement presence he observed in order for his co-conspirators to be able to conceal from law enforcement the illegal activities in the Las Palmas II. Similarly, on at least one occasion, Odelia Hernandez, 47, Tencha’s sister, told co-conspirators to lock the doors when she realized law enforcement was coming. Medeles was sentenced to 55 months and ordered to pay a $2,000 fine, while Hernandez received a sentence of 66 months and must pay a $1500 fine.
Eduardo Guzman Gonzales aka Miguel Rojas or El Pantera, 33, and Alberto Mendez Flores aka Ardilla, 27, managed the cantina. They paid Tencha $20,000 each week out of the money received from the operation of the Las Palmas II and kept all the monies received in excess of that amount. Both men received sentences of 88 months in federal prison.
Jose L. Uraga aka Wicho, 36, provided false/fraudulent identifications to employees, to include females working at Las Palmas II, and was sentenced to 28 months. Jorge Antonio Teloxa-Barbosa aka Eli, 31, testified at trial to his part in the conspiracy. He also managed the cantina with Guzman and Mendez and paid Tencha $20,000 each week out of the money received from the operation of Las Palmas II, keeping all the monies received in excess of that amount. He received a sentence of 37 months.
Graciela Medeles Ochoa, 37, Tencha’s daughter, assisted Tencha in counting the proceeds obtained from Las Palmas II. She also negotiated cashier’s checks for her mother and sister, Delia Diaz. The money used to obtain the cashier’s checks came from the sex trafficking violations occurring at Las Palmas II. Ochoa, who also testified about her mother’s unlawful conduct, was sentenced to 18 months. Diaz, 51, received 71 months for money laundering. Another of Tencha’s daughters, Diana Medeles Garcia aka Diana Garcia Marquez, 50, testified that her mother had been running brothels since she was 13 years old. She received 21 months for aiding and abetting to harbor illegal aliens.
Guadalupe Valdez Lugo aka Lupe, 58, worked as a manager at Las Palmas II, overseeing the female workers as well as the regular employees. She also testified at trial about Tencha’s unlawful conduct and received a sentence of 25 months as well as a $5,000 fine.
Another of Tencha’s sisters, Lilia Medeles Cerda aka Lilly, 66, received a sentence of 52 months for conspiracy to harbor Illegal Aliens. Talat Crippin aka Chacho, 27, who was married to one of Tencha’s granddaughters pleaded guilty to being a lookout for Tencha’s brothel and received 41 months.
David Garcia, 46, (Techa’s son) was convicted of aiding and abetting to harbor illegal aliens and will be sentenced next month.
Another defendant - Alfonso Diaz-Juarez aka Ponco or El Grenas, a 45-year-old Mexican national - is a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000. A Clear Channel Outdoor digital billboard campaign launched in December across the Greater Houston area touted an up to $50,000 reward for information leading to the location and arrest of Diaz-Juarez.
The investigation leading to the filing of criminal charges was the result of a three-year investigation conducted by members of the HTRA in Houston, which includes the FBI, ICE-HSI, Harris County Sheriff’s Office, IRS-CI, Texas Alcoholic and Beverage Commission, Department of State, Texas Department of Public Safety and the Houston Police Department.
Assistant U.S. Attorneys Ruben R. Perez and Joe Magliolo are prosecuting the case.
Scientists Indicted for Allegedly Stealing Biopharmaceutical Trade SecretsRead the Press Release
PHILADELPHIA – An indictment was filed today charging five people in an alleged scheme to steal biopharmaceutical trade secrets from pharmaceutical company GlaxoSmithKline (GSK), announced United States Attorney Zane David Memeger. Charged in the conspiracy are: Yu Xue, 45, of Wayne, PA; Tao Li, 42, of Nanjing, China; Yan Mei, 36, of Nanjing, China; Tian Xue, 45, of Charlotte, NC; and Lucy Xi, 38, of West Lake Village, CA. The indictment includes charges of conspiracy to steal trade secrets, conspiracy to commit wire fraud, conspiracy to commit money laundering, theft of trade secrets, and wire fraud.
Yu Xue and Lucy Xi were scientists working at GSK’s research facility in Upper Merion, PA. According to the indictment, the defendants engaged in a scheme to steal trade secrets related to GSK research data, procedures, and manufacturing processes for biopharmaceutical products. Many of the biopharmaceutical products targeted were designed to treat cancer or other serious diseases. Yu Xue, Tao Li, and Yan Mei formed a corporation in China called Renopharma allegedly to market and sell the stolen trade secret information. It is further alleged that in order to hide the proceeds of the crime, Yu Xue, Tao Li, and Yan Mei agreed to title the proceeds in the name of Yu Xue’s sister, Tian Xue, and other family members.
If convicted of all charges, each defendant faces a possible prison term, fines, restitution, special assessments, and a term of supervised release.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert Livermore.
San Miguel County Man Sentenced to 84 Months for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Guy N. Martinez, 23, of Las Vegas, N.M., was sentenced today in federal court in Albuquerque, N.M., to 84 months in federal prison followed by 15 years of supervised release for his federal child pornography conviction. Martinez will also be required to register as a sex offender.
Martinez was arrested in July 2014, and charged in a criminal complaint with possessing, receiving and distributing visual depictions of minors engaged in sexually explicit conduct. According to the criminal complaint, the FBI initiated the investigation leading to Martinez’s arrest after receiving a lead from Queensland Police Service (QPS) in Brisbane, Australia. Following the arrest of an Australian citizen in March 2012, on child pornography charges, the QPS identified more than 100 United States-based email accounts that allegedly had been used to send, receive or discuss child pornography with the Australian citizen. Investigation by the FBI revealed that one of those email accounts was subscribed to Martinez.
The FBI’s investigation revealed that Martinez had two email accounts that allegedly had been used to receive and distribute more than 1,000 images consistent with child pornography. On July 18, 2014, the FBI executed a search warrant at Martinez’s residence in Las Vegas, N.M. They arrested Martinez while executing the search warrant.
Martinez was subsequently indicted on Aug. 12, 2014, and charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct from March 1, 2012 through July 18, 2014 in San Miguel County, N.M. Martinez pled guilty to possession of visual depictions of minors engaged in sexually explicit conduct on Aug. 20, 2015. Martinez admitted that between March 1, 2012 and July 18, 2014, he possessed images of child pornography that traveled in interstate commerce.
This case was investigated by the Santa Fe office of the FBI and the New Mexico State Police with assistance from the QPS. The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard 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 Internet Crimes Against Children (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 82 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.
Registered Sex Offender Sentenced to Life for Jefferson County CrimesRead the Press Release
BEAUMONT, Texas – A 45-year-old Galveston, Texas man has been sentenced to Life in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jose Stephen Gracia pleaded guilty on July 27, 2015 to production of child pornography and was sentenced to Life in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Apr. 2, 2015, federal agents executed a search warrant at Gracia’s residence in Galveston based on information that child pornography was being distributed from that location. During the search, investigators located a digital memory card in a locked safe that contained videos of Gracia and his victims. In these videos, Gracia, a registered sex offender, was engaged in sexual activity with the children. Further investigation revealed the videos were originally produced in Jefferson County, Texas. Gracia was indicted by a federal grand jury on May 7, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by the Department of Homeland Security (DHS) Homeland Security Investigations (HSI), Jefferson County District Attorney’s Office, Jefferson County Sheriff’s Office, Galveston Police Department, Pearland Police Department and the Internet Crimes Against Children (ICAC) and prosecuted by Assistant U.S. Attorney Lesley Bartow.
Ponchatoula Man Sentenced to 27 Years in Prison After Pleading Guilty to Sexually Exploiting ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT SWAN, age 53, of Ponchatoula, was sentenced today for his role in sexual exploiting children, including receiving images depicting the sexual victimization of children.
U.S. District Judge Stanwood R. Duval, Jr. sentenced SWAN to 327 months imprisonment, followed by supervised release for life, and a $100 special assessment. Additionally, SWAN is also required to register as a sex offender pursuant to the Sex Offender Registration Notification Act.
According to court document, on January 30, 2013, investigators with the State of Louisiana Department of Justice – Cyber Crime Unit, executed a search warrant on SWAN’S residence. The search was based on evidence obtained by law enforcement that between about November 30, 2012, and December 1, 2012, SWAN distributed, by making publicly available in the shared folder of his peer-to-peer program, videos depicting the sexual victimization of children between the ages of two and ten. Agents seized fifteen separate digital devices, including two computers and thirteen digital storage drives.
While reviewing materials seized in the search, agents found digital evidence that in about January 2010, SWAN and his associate, THOMAS MIDDLETON, forced a then-three year-old girl to engage in sexually explicit conduct, which SWAN recorded. MIDDLETON was convicted in the Western District of Kentucky for his role in the offense.
Additionally, agents found that between about May 2010 and January 2013, SWAN had downloaded, saved, and catalogued over 500,000 images and videos – one of the largest collections of child pornography found in the State of Louisiana –depicting children as young as four-weeks old being forced to engage in sexually explicit conduct. Titles of many of the videos were consistent with the content of the videos.
Because of SWAN’S prior conviction in 1987 for lewd and lascivious assault of a minor in Escambia County, Florida, SWAN faced an enhanced sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the State of Louisiana Department of Justice – Cyber Crime Unit in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Pennsylvania Man Sentenced for Possession of Explosives, Fraud and Weapons OffensesRead the Press Release
Istvan Merchenthaler, 45, of Downingtown, Pennsylvania, was sentenced today to 140 months in prison for wire fraud, aggravated identity theft, money laundering, filing false tax returns, interstate transportation of stolen property, possessing unregistered destructive devices, possessing firearms and ammunition as a fugitive and possessing an illegally manufactured firearm. These charges stemmed from two indictments in this district and one indictment, each, in the Eastern District of North Carolina and the District of Maryland. All of the cases were consolidated before U.S. District Judge Robert F. Kelly for the Eastern district of Pennsylvania who also ordered three years of supervised release, a $2,200 special assessment and more than $3.4 million in restitution.
Between May 2006 and February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards, prepaid phones and prepaid “adult entertainment cards.” Merchenthaler, who used a number of aliases, falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores including Walmart, 7-Eleven and BJ’s Wholesale Club. In reality, Merchenthaler operated a “Ponzi” scheme, stealing over $3 million from over 250 investors and using much of these funds to buy expensive cars, jewelry and firearms and to perpetuate his scheme. To line his pockets with these victims’ funds, Merchenthaler used stolen identities, impersonated corporate executives, forged signatures and fabricated bogus contracts. Merchenthaler continued his scheme while he was on pretrial release in this district. He also filed false tax returns, defrauding the United States of over $400,000.
While on pretrial release, Merchenthaler also removed his electronic monitoring bracelet and fled as a fugitive. In order to evade authorities, Merchenthaler stole two vehicles from car dealerships in Pennsylvania and North Carolina and fled from the scene of a traffic stop by the Pennsylvania State Police while driving one of the stolen vehicles. The U.S. Marshals Service Fugitive Task Force and the Maryland State Police later apprehended Merchenthaler in Bel Air, Maryland.
Moreover, prior to and after jumping bail from this district, Merchenthaler amassed approximately 17 firearms and over approximately 11,580 rounds of ammunition, as well as approximately 634 improvised explosive devices (IEDs), which he stored in Pennsylvania, North Carolina and Maryland. Approximately 67 of these IEDs were comprised of PVC pipe, almost all of which contained shrapnel in the form of nails, screws, or rocks. The remaining approximately 567 IEDs were comprised of cardboard tubes in varying sizes and explosive power. All of the IEDs – PVC and cardboard – were center primed with flash powder. Merchenthaler drove these IEDs in his stolen vehicles to storage facilities in all three states. During render safe procedures at a North Carolina storage facility, several of the IEDs exploded, resulting in damage to a bomb squad robot and the storage facility.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the U.S. Marshals Service Fugitive Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Philadelphia Police Bomb Disposal Unit, the Montgomery County Bomb Squad, the Montgomery County Sheriff’s Office, the East Whiteland Police Department, the East Whiteland Fire Department, the Malvern Fire Department, the Maryland State Police, the North Carolina State Bureau of Investigation, the Downingtown Police Department and the Chester County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorneys Vineet Gauri, Jason Kellhofer and Adam Ake in the U.S. Attorney’s Offices for the Eastern District of Pennsylvania, Eastern District of North Carolina and the District of Maryland.
Paul Hebert Pleads Guilty to Social Security and Medicaid FraudRead the Press Release
Paul Hebert, 50, of Gloucester, Massachusetts, formerly of Barre, Vermont, pleaded guilty today to charges of Social Security fraud and Medicaid fraud.
At today’s hearing, Hebert admitted that he made multiple false statements concerning his ability to work when he testified under oath at a Social Security Administration hearing on October 28, 2010; he failed to disclose changes in his income after the hearing as required by law; and he wrongfully continued to receive Social Security Income benefits until April 4, 2013. Hebert also admitted that, after obtaining Medicaid benefits on February 24, 2009, he failed to report changes in his income and employment status, as required by law, and wrongfully received Medicaid benefits until approximately November 2012.
At sentencing, Hebert faces up to five years imprisonment, and a fine of up to $250,000 on each count. The actual sentence will be determined through reference to federal sentencing guidelines and applicable statutes. According to the plea agreement, defendant Hebert has agreed to pay restitution totaling $53,660.57 prior to his sentencing hearing, and both the United States and defendant Hebert are jointly recommending that Hebert be sentenced to four years of probation. Such a recommendation is not binding on the Court at sentencing.
United States Attorney Eric S. Miller commended the efforts of the SSA Office of Inspector General, Boston Field Division; HHS Office of the Inspector General, Boston Regional Office; and the National Oceanic Atmospheric Administration, Office of Law Enforcement, in the investigation and prosecution of Hebert.
Hebert is represented by Paul S. Volk, Esq. The prosecutor is Assistant U.S. Attorney Jonathan Ophardt.
Palm Beach County Man Indicted for Fraudulently Collecting Murdered Father’s Retirement BenefitsRead the Press Release
A Palm Beach County man is charged with fraudulently using his father’s identity to collect unauthorized Social Security and pension retirement benefits, knowing of his father’s unreported murder.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Sheriff Ric. L. Bradshaw, Palm Beach County Sheriff's Office (PBSO), Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), made the announcement.
Jason Henry Davis, 37, of West Palm Beach, Florida, was charged with eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343; one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a); twelve counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A; and two counts of making a false statement to a government agency, in violation of Title 18, United States Code, Section 1001. The defendant had his initial appearance earlier today, January 20, 2016 before the Honorable United States Magistrate Judge William Matthewman, in West Palm Beach. He is scheduled for a pretrial detention hearing on January 27, 2016.
As alleged in the indictment, on April 18, 2013, the skeletal remains of Henry T. Davis, Jr., the father of defendant Jason Davis, were found in the backyard of the Lantana, Florida residence where Henry Davis had lived with the defendant and his ex-wife, Jason Davis’ mother. The indictment alleges that Jason Davis was present when his father was murdered, as early as 2008, and failed to report his death to the authorities. Jason Davis then assumed his father’s identity in order to collect approximately $1,500 in monthly Social Security and HUD funded pension retirement benefits. The defendant also failed to report his receipt of these funds to the Department of Agriculture in order to fraudulently obtain food assistance benefits. As a result of his fraudulent scheme, the defendant collected approximately $120,000 in federally-funded benefits which he was not personally qualified to receive.
Mr. Ferrer commended the investigative efforts of the Palm Beach County Sheriff’s Office Homicide Unit and Public Assistance Fraud Task Force, SSA-OIG, HUD-OIG, and USDA-OIG. This case is being prosecuted by Assistant U.S. Attorneys Carolyn Bell and Adam McMichael.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Oxon Hill Woman Pleads Guilty to Stealing over $176,000 in Social Security BenefitsRead the Press Release
Baltimore, Maryland – Gloria Wilson, age 59, of Oxon Hill, Maryland, pleaded guilty today to theft of government property arising from a scheme to steal $176,874 in social security benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to her guilty plea, Wilson’s stepmother, E.W., received retirement benefits from the Social Security Administration (SSA). E.W. died on October 31, 1996. Her death was not reported to SSA. At the time of her death, the retirement benefits were paid by U.S. Treasury check and mailed to a post office box held in E.W. and Wilson’s names. The checks were then deposited into a checking account held jointly by E.W. and Wilson. Wilson endorsed the checks in her name and in the name of E.W.
In 2000, SSA stopped issuing paper checks to E.W. and instead paid the benefits by direct deposit into the jointly held account. SSA stopped paying the benefits in January 2014.
SSA paid a total of $176,874 in retirement benefits for E.W. after October 31, 1996. After her stepmother’s death, Wilson withdrew substantially all of the benefits deposited in the bank account.
When she was interviewed by law enforcement on March 11, 2014, Wilson admitted that she knew she was not entitled to E.W.’s retirement benefits.
Wilson faces a maximum sentence of 10 years in prison for theft of government property. Wilson has agreed to pay restitution of $176,874. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for April 21, 2016 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the Social Security Administration - Office of Inspector General for its work in the investigation and thanked Special Assistant U.S. Attorney Lauren E. Perry, who is prosecuting the case.
Organized Crime Member Sentenced for Drug ConspiracyRead the Press Release
BOSTON – An alleged member of the New England Family of La Cosa Nostra was sentenced yesterday in U.S. District Court in Boston for conspiring to traffic over 40 kilograms of marijuana from July 2013 to February 2014.
Louis L. DiNunzio, 29, of Medford, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 18 months in prison and ordered to forfeit $10,000. In September 2015, DiNunzio pleaded guilty to conspiracy to distribute marijuana.
In 2013, law enforcement initiated a long-term investigation, known as Operation Excalibur, into drug-trafficking, illegal gambling, extortion, and other criminal activity by the members and associates of the New England Family of La Cosa Nostra (NELCN). DiNunzio allegedly was a member of the NELCN and is the son of former NELCN Boss Anthony DiNunzio, who is currently in federal prison for RICO conspiracy. As part of the conspiracy, DiNunzio and others purchased large quantities of marijuana and shipped them via UPS under fictitious names to Massachusetts.
Earlier this month, two other alleged NELCN associates involved in the conspiracy were sentenced. Joseph Spagnuolo-Kazonis, 30, of Boston, was sentenced to 18 months in prison and ordered to forfeit $10,000. John Woodman, 43, of Braintree, was sentenced to one year and one day in prison, and ordered to pay a fine of $4,000 and to forfeit $5,000.
In additional cases arising from this investigation, Anthony Spagnolo, 67, and Pryce Quintina, 75, both of Revere, pleaded guilty in December 2015 to conspiracy to interfere with interstate commerce by extortion and will be sentenced in March 2016. On Jan. 13, 2016, John Evans, 68, of Middleborough, and Joseph Petrucelli, 24, of Winthrop, pleaded guilty to conducting an illegal gambling business and will be sentenced in April 2016.
United States Attorney Carmen M. Ortiz: Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistance was also provided by the Internal Revenue Service’s Criminal Investigations, the Massachusetts Department of Correction, and the Boston, Braintree, Everett, Medford and Quincy Police Departments and the FBI’s San Diego Division. The case was prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Seth B. Kosto of Ortiz's Criminal Division.
Newburgh Fire Chief Charged in White Plains Federal Court with Fraudulently Obtaining Retirement BenefitsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Thomas P. DiNapoli, New York State Comptroller, announced the indictment of MICHAEL J. VATTER, the Chief of the Newburgh Fire Department, charging him with fraudulently obtaining approximately $95,000 in pension benefits by failing to report his return to work in the public sector to the New York State and Local Police and Fire Retirement System. Under New York State law, a public sector retiree who is receiving a pension and who returns to public service cannot receive both pension payments and a public sector paycheck. The law permits public sector retirees to earn up to $30,000 per year from public sector employment before their pension benefits are cut off for that year.
According to the allegations contained in the Indictment[1] unsealed today in White Plains federal court:
VATTER served in the Newburgh Fire Department in various capacities from 1980 until his retirement in May 2000. Following his retirement, VATTER attended law school and practiced law. In November 2009, the Indictment charges, VATTER returned to the Newburgh Fire Department as its Chief. The Indictment further alleges that VATTER failed to report his return to the public sector despite knowing he had a duty under state law to do so. As a result of this conduct, VATTER obtained $95,106 in pension benefits from the New York State and Local Police and Fire Retirement System source to which he was not entitled.
VATTER, 57, of Walkill, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the FBI, the Office of the New York State Comptroller, the Orange County District Attorney's Office, and the Orange County Sheriff's Office.
This prosecution is being handled by the Office's White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment forth herein constitute only allegations, and every fact described should be treated as an allegation.
New York Man Sentenced to 54 Months in Federal Prison for Obtaining and Selling Prescription NarcoticsRead the Press Release
Deirdre M, Daly, United States Attorney for the District of Connecticut, announced that DONALD McCANN, 32, of Bedford Hills, N.Y., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 54 months of imprisonment, followed by five years of supervised release, for illegally obtaining and distributing prescription narcotics.
According to court documents and statements made in court, in May 2012, the Drug Enforcement Administration began an investigation into the filling of fraudulent prescriptions for oxycodone at pharmacies in Connecticut and New York through the use of fraudulent identifications. The investigation revealed that McCANN purchased prescription paper and obtained identifying information to forge prescriptions from at least five doctors. McCANN and Jesse Kaplan then traveled to pharmacies together and used multiple aliases and fraudulent prescriptions to obtain oxycodone and hydromorphone. They then pooled, traded or shared their pills for further distribution.
Between December 2011 and October 2013, McCANN fraudulently obtained more than 16,000 oxycodone 30MG pills.
McCANN and Kaplan were arrested on December 20, 2013. On March 13, 2015, McCANN pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone. On July 24, 2015, while he was released on bond, McCANN was arrested in the Bronx, N.Y., for purchasing heroin. His bond was revoked on August 5, 2015.
McCANN’s criminal history includes multiple arrests in Connecticut and New York for obtaining or attempting to obtain narcotics by using fraudulent prescriptions.
On November 18, 2014, KAPLAN, who also pleaded guilty, was sentenced to 57 months of imprisonment.
This matter was investigated by the DEA Tactical Diversion Squad and the Greenwich and Naugatuck Police Departments. The DEA Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
New Hope Couple Sentenced for Stealing Social Security BenefitsRead the Press Release
PHILADELPHIA - Roger White, 58, and Audria White-Nunnally, 61, both of New Hope, Pennsylvania, were sentenced today for stealing the Social Security benefits of Roger White’s deceased relative. Roger White was sentenced to eight months in prison, his wife was sentenced to nine months in prison. Each was also ordered to complete three years of supervised release and to pay $68,462 in restitution.
The defendants pleaded guilty in October of 2015 to one count of conspiracy, three counts of wire fraud, and one count of theft of government funds. In addition to these charges, Audria White-Nunnally was also charged with two counts of making false statements to federal agents. The defendants admitted to stealing retirement benefits intended for a deceased relative of Roger White, after his relative’s death in December 1998. The defendants’ actions resulted in a loss to the government of approximately $68,462. The defendants also admitted that during the investigation they placed an elderly relative in the attic of their New Hope, PA home in an attempt to convince Social Security Administration employees that she was Roger White’s deceased relative.
The case was investigated by the Social Security Administration, Office of Inspector General, and was prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
New Hamphire Residents Plead Guilty to Armed Bank Robbery ChargesRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Crystal Dufault, 33, and Joseph Richards, 46, both of Manchester, New Hampshire, pled guilty today in U.S. District Court to armed bank robbery and conspiracy to commit armed bank robbery. The charges arise from the August 3, 2015 armed bank robbery of Norway Savings Bank, in Freeport, Maine by Richards; the August 14, 2015 armed bank robbery of Franklin Savings Bank, in Franklin, New Hampshire by Dufault and Richards; the September 4, 2015 armed bank robbery of University Credit Union in Portland by Dufault and Richards; and the September 12, 2015 armed bank robbery of TD Bank in Lewiston, Maine by Richards.
According to court documents, a pellet gun was brandished during each of the robberies and the robber(s) absconded with $5,854 from Norway Savings Bank; $9,887 from Franklin Savings Bank; $12,308 from University Credit Union; and $9,888 from TD Bank.
The defendants face up to 25 years in prison and a $250,000 fine on each charge. They will be sentenced after completion of a presentence investigation report prepared by the U.S. Probation Office.
The joint investigation was conducted by the Franklin and Manchester, New Hampshire Police Departments; the Freeport, Portland, Lewiston, Old Orchard Beach and Saco Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these armed bank robberies were quickly solved because local, state, and federal law enforcement agencies across two states worked closely together.”Nassau County Nurse Sentenced to Six Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Ronald Eugene Mabrey, Jr. (34, Callahan) to six years in federal prison for receiving child pornography over the Internet. He was also ordered to register as a sex offender and to forfeit his computer media. Mabrey has been in federal custody since his arrest on July 28, 2015.
According to court documents, on July 28, 2015, FBI agents and other law enforcement officers executed a federal search warrant at Mabrey’s residence. During an interview, Mabrey admitted that he had searched for, downloaded, and viewed “all types” of child pornography, and he stated that his addiction to child pornography had started about four years ago. A subsequent forensic examination of Mabrey’s laptop and a thumb drive revealed more than 190 videos and at least 4,000 images depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, the Nassau County Sheriff’s Office, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nampa Man Sentenced to Prison for Drug and Gun CrimesRead the Press Release
BOISE – Jose Enrique Olvera Jr., 51, of Nampa, Idaho, was sentenced today in United States District Court to 84 months in prison for possession of methamphetamine with the intent to distribute and unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Olvera to serve four years of supervised release following his release from prison. Olvera pleaded guilty to the charges on November 3, 2015.
According to court documents, law enforcement agents executed a search warrant at Olvera’s residence on June 18, 2014. During the search, agents found methamphetamine, scales, packaging material, drug ledgers, $2,767, seven firearms, and ammunition. The firearms included a 20 gauge sawed-off shotgun with an obliterated serial number, other shotguns, rifles, and a handgun. Olvera was prohibited from possessing the firearms because he was previously convicted of the felony crime of possession of a controlled substance with intent to deliver in 2003. Law enforcement agents also determined through the course of their investigation that Olvera was a gang member.
Olvera was charged as a result of an investigation by the Treasure Valley Metro Violent Crimes Task Force, which focused on the “Norteno” Northside gang that is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. So far, ten defendants have been sentenced. Guadalupe Serrano, 35, of Caldwell, was sentenced on April 21, 2015, to 75 months in prison for possession of methamphetamine with intent to distribute and for possessing firearms in furtherance of the drug trafficking crime. Nicole Danelle Nieto, 31, of Nampa, was sentenced on May 26, 2015, to 41 months in prison for distributing methamphetamine. Jose Manuel Menchaca, 35, of Nampa, was sentenced May 28, 2015, to 60 months in prison for distributing methamphetamine. On June 17, 2015, Brandi Larrea, 31, of Nampa, was sentenced to 48 months in prison for distributing methamphetamine and Tara Noelle Rivera, 30, of Nampa, was sentenced to 24 months in prison for distributing methamphetamine. Johnny Lee Martinez, 33, of Nampa, was sentenced on July 20, 2015, to 57 months in prison for distributing methamphetamine. Michael David Bradshaw, 31, of Nampa, was sentenced on August 6, 2015, to 66 months in prison for distributing methamphetamine. Kenny P. Breedlove, 35, of Porterville, California, was sentenced on October 22, 2015, to 110 months for possession of methamphetamine with the intent to distribute. Guillermo Farias Jr., 29, of Nampa, was sentenced on October 26, 2015, to time served and three years of supervised release for his role in assisting with methamphetamine distribution. Richard Lobato, 51, of Nampa, was sentenced on December 3, 2015, to 60 months for distribution of methamphetamine. Isaac Bright, 21, of Caldwell, is scheduled for sentencing on February 3, 2016. Veronica Cantu, 26, of Nampa, was arrested in Michigan in November and is set for trial in April. One defendant, Ruben Rodriguez, 36, of Nampa, has an outstanding warrant.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Mexican National Sentenced for Smuggling MunitionsRead the Press Release
BROWNSVILLE, Texas – A 27-year-old man from Mexico City has been ordered to prison following his involvement in smuggling munitions into Mexico through Brownsville, announced U.S. Attorney Kenneth Magidson. Ruben Sosa pleaded guilty Oct. 16, 2015, to smuggling munitions in violation of U.S. export control laws.
Today, U.S. District Judge Rolando Olvera ordered he serve a total of 24 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison. At the hearing, additional evidence was presented showing communications between Sosa and other parties in Mexico negotiating the terms of agreement on an exchange for the munitions. Evidence further indicated that the munitions were smuggled into Mexico in February 2015. In handing down the sentence, Judge Olvera noted that while Sosa was a young man and had no prior criminal history, the violence in Mexico was also a consideration in the sentence.
The munitions involved in the smuggling scheme were identified by authorities as CAA Tactical Roni G2 conversion kits. The CAA Tactical Roni G2 conversion kit is an item listed on the U.S. munitions list, and as such, may not be exported without a license. The Roni G2 functions by attaching to a Glock pistol, thereby lengthening the barrel and converting the pistol into a tactical carbine. The Roni G2 also has other features including large gas ports for improved ventilation, a Picatinny rail for weapon attachments including optics and a stock for improved recoil reduction.
Sosa placed an order for 50 of these tactical conversion kits from a licensed arms dealer located just outside of Los Angeles, California, on Dec. 26, 2014. Sosa had the tactical conversion kits shipped to Brownsville, and thereafter exported into Mexico. The Defendant admitted to Judge Olvera during sentencing that he was aware he needed a license to export the munitions but did so anyway.
Sosa will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by Immigration and Customs Enforcement - Homeland Security Investigations. Assistant U.S. Attorney Jason Corley and Trial Attorney Thea Kendler of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Man Who Shot at KCK Police Charged in Federal CourtRead the Press Release
KANSAS CITY, KAN. - A man who shot at police in Kansas City, Kan., was indicted Wednesday on federal charges, U.S. Attorney Barry Grissom said.
A grand jury returned an indictment charging Ashawntus S. McCambry, 27, Kansas City, Kan., with one count of possession with intent to distribute crack cocaine, one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm following a felony conviction.
McCambry initially was charged in a criminal complaint alleging the crimes occurred Dec. 22, 2015, when officers from the Kansas City, Kan., Police Department served a search warrant at McCambry’s residence in the 800 block of Quindaro Boulevard. When police tried to enter, McCambry fired three rounds in their direction. After surrendering to officers, he said he didn’t know they were police and he thought he was being robbed.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the crack cocaine charge; a maximum penalty of five years and a fine up to $250,000 on the marijuana charge; not less than 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on the remaining charge. The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
OTHER GRAND JURY INDICTMENTS
Nathaniel N. Germany, Jr., 26, Kansas City, Kan., is charged with one count of carjacking, one count of brandishing a firearm during the carjacking, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Sept. 1 and Sept. 8, 2015, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 15 years in federal prison and a fine up to $250,000 on the carjacking charge, not less than seven years and a fine up to $250,000 on the brandishing charge, and a maximum penalty of 10 years on the remaining count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Samuel Below, 28, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Jan. 15, 2016, in Wichita, Kan.
If convicted, he faces a penalty of not less than 5 years and not more than 40 years and a fine up to$2 million on the methamphetamine charge and a penalty of not less than five years (consecutive) and a fine up to $250,000 on the firearm charge. The U.S. Postal Inspection Service and the Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Brandon Matthew Mounce, 38, who was living in Hutchinson, Kan., is charged with failing to register as required by the Sex Offender Registration and Notification Act. The crime is alleged to have occurred March 26, 2015.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Man Who Operated New Haven Crack Ring Sentenced to 10 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARLON GONZALEZ, also known as “Rey,” 26, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by four years of supervised release, for operating a cocaine and crack cocaine distribution ring in New Haven.
According to court documents and statements made in court, a DEA New Haven Task Force investigation, which included the use of court-authorized wiretaps, revealed that between July and November 2014, GONZALEZ regularly obtained bulk quantities of cocaine from Deivy Pineda-Peguero of the Bronx, N.Y, on consignment. GONZALEZ, with the assistance of Wilfredo Garcia-Quinones, a.k.a “Poro,” and others, converted a large portion of the cocaine into crack and distributed the drug in the New Haven area. GONZALEZ then paid Pineda-Peguero with proceeds from the drug sales.
GONZALEZ has been detained since his federal arrest on November 10, 2014. At the time of his arrest, GONZALEZ had been released on bond in connection with pending state drug and gun charges. In July 2014, GONZALEZ was arrested by New Haven Police after his car was pulled over and he was found in possession of crack, a loaded firearm and a ski mask.
In addition, during the early stages of the DEA’s wiretap investigation, intercepted communications revealed that GONZALEZ had supplied a firearm to another individual. Police located the vehicle in which the other individual was traveling, arrested the individual and charged him with a state weapons offense.
On September 9, 2016, GONZALEZ pleaded guilty in federal court to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack”).
Pineda, 31, and Garcia, 32, also previously pleaded guilty. On January 13, 2016, Pineda was sentenced to 71 months of imprisonment and, on December 22, 2015, Garcia was sentenced to 60 months of imprisonment.
In addition six other men who were street-level drug dealers affiliated with GONZALEZ’s organization were charged, pleaded guilty and await sentencing. They are Julius Batista, a.k.a. “Julz,” 24, of New Haven; Felix Jimenez, a.k.a. “Fee,” 28, of New Haven; Andre Scott, a.k.a. “Pooh,” 26, of New Haven; Giovany Cosme, a.k.a. “Gio,” 25, of West Haven; Jerome Rumley, a.k.a. “Rome,” 21, of New Haven, and Peter Diaz, a.k.a. “Pete,” 31, of Meriden.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Amy Brown.
Man Sentenced to Additional 300 Months (25 Years) for Shooting Federal AgentRead the Press Release
Contact Person: Stacey D. Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that James William Lewis, a/k/a “Jessie,” a/k/a “Phoenix,” age 33, of Kings Mountain, North Carolina was sentenced to 300 months (25 years) imprisonment today in federal court. In August 2015, Lewis plead guilty to a 2nd/subsequent offense of use/possession/discharge of a firearm during a crime of violence, to wit: assault on a federal agent, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 924(c)(1)(C). Senior United States District Judge Joseph F. Anderson, Jr. imposed the sentence, which will run consecutive to the 9 year sentence that Lewis is currently serving for an armed robbery offense in the Western District of North Carolina. After serving the term of imprisonment, Lewis will be on federal supervised release for 5 years.
Evidence presented at the earlier change of plea hearing established that during the early morning hours of January 7, 2014, deputized task force agents with the Federal Bureau of Investigation’s (FBI) Charlotte Safe Streets Task Force/Violent Crime Apprehension Team were in Fort Mill, South Carolina searching for Lewis, who was wanted for a December 2013, armed robbery of a Jack-in-the-Box restaurant in North Carolina. Agents, in police attire and accompanied by York County Sheriff’s Department officers in marked units, approached the residence of Lewis’ girlfriend, Kirstie Elaine Philome Barratt, age 22, in an attempt to determine if Lewis was in the residence. After approximately 15 minutes of the agents knocking on the door and announcing their presence with a loud speaker, Barratt came to the door. Barratt, who was advised by agents that it was a crime to make a false statement to federal agents, told the agents that Lewis was not in the home, that she had not seen him for 2 months because they had broken up, and that the only other persons in the residence were her parents. Barratt gave the agents consent to search the residence. Upon completing a sweep of the residence, agents located Barratt’s parents asleep in one upstairs bedroom and noticed the door shut to another upstairs bedroom. Agents could hear a dog barking in that other upstairs bedroom, so they asked Barratt to secure the dog so they could search the bedroom. Barratt opened the bedroom door, went in and came out with the dog, shutting the door behind her. Agents then went into the bedroom and found Lewis crouched in the corner with his weapon drawn. Gunfire ensued and an FBI task force agent was shot 3 times by Lewis, who was also shot in the legs. Both Barratt and Lewis were taken into custody. Barratt later advised agents that she knew Lewis was in the residence, that she knew he was wanted for the robbery, that she thought he was going to hide in the attic, and that when she entered the bedroom to retrieve the dog, she saw him in the corner holding the gun, but did not tell the agents before allowing them to enter the bedroom. After being taken into custody, Lewis waived his rights and admitted to telling his girlfriend that it was going to end up in a shootout with officers. Lewis also admitted that he and his girlfriend’s plan was for him to hide in the attic, but he decided that he didn’t want to hide “like a puppy,” so he positioned himself in the bedroom with his gun drawn because he wanted to be shot. Lewis admitted that when the officers entered the bedroom, he had his gun pointed at the officer and that the officer had a right to shoot him.
On October 22, 2014, Barratt plead guilty to making a false statement to a federal agent, in violation of Title 18, United States Code, Section 1001. At Barratt’s sentencing on December 15, 2014, the court granted the government’s motion for an upward departure from the federal guidelines sentencing range of 0 to 6 months, noting that this was a “rare” case and that Barratt “knowingly placed a law enforcement officer’s life in jeopardy” by her false statement. Barratt was sentenced to 24 months (2 years) imprisonment, to be followed by 3 years of supervised release.
In July 2015, Lewis was sentenced to 108 months (9 years) in federal court in the Western District of North Carolina for the December 2013, robbery of the Jack-in-the-Box restaurant and possession of a firearm during that crime of violence, to wit: robbery. As noted above, Lewis’ 300 months (25 year) sentence will run consecutive to the North Carolina federal sentence. Lewis also has prior North Carolina state convictions for possession of cocaine (1999) and larceny of a motor vehicle (2000).
The case was investigated by the FBI, the York County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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