Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
20 January 2016
Los Angeles Man Charged with Running Multi-million Dollar Foreclosure Rescue Scam in Visalia and SalinasRead the Press Release
FRESNO, Calif. — Martin Calzada, 28, of Los Angeles, was arraigned today in Fresno, charged in connection with a scheme to defraud homeowners facing foreclosure, United States Attorney Benjamin B. Wagner announced.
On December 31, 2015, a federal grand jury returned an indictment against Calzada, charging with conspiracy to commit mail fraud and mail fraud. In court today, Calzada entered a plea of not guilty. His next court date is a status conference and is set for March 21, 2016.
According to court documents, between August 2010 and October 2011, Calzada, and other employees of Star Reliable Mortgage, which had offices in Bakersfield, Visalia, and Salinas, targeted distressed homeowners with a fraudulent “loan elimination” scheme. Star Reliable charged clients an upfront fee — ranging from $2,500 to $4,500 — as well as monthly fees, based on false promises that the clients could own their homes “free and clear” as a result of Star Reliable’s services. In furtherance of the scheme, Calzada and other employees filed at county recorders’ offices fraudulent documents on behalf of the homeowner-clients that purported to replace the legitimate property trustees with fictitious trusts affiliated with Calzada and Star Reliable, all in an effort to “cloud title” and halt or stall the foreclosure process. Additionally, Calzada, and other employees working at his direction, told clients to stop paying their mortgages. They also falsely represented that each client had one million dollars in a U.S. government account that could be used to pay off a homeowner’s mortgage.
Instead of owning their homes “free and clear,” many of Star Reliable’s clients lost their homes in foreclosure. The scheme caused more than 100 homeowner-clients to pay approximately $875,000 to Star Reliable and lending institutions to lose more than $4 million. At least $270,000 of the money paid to Star Reliable by homeowner-clients was funneled back to Calzada.
This case is the product of an investigation by the Federal Bureau of Investigation and the Tulare County District Attorney’s Office. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
If convicted, Calzada faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Local Woman Pleads Guilty to Embezzlement and Tax ChargesRead the Press Release
St. Louis, MO – ANASTASIA GRZESKOWIAK pled guilty today to embezzling $2.9 million from the account of a disabled individual whose financial affairs she was entrusted with managing.
According to court documents, beginning in 2000, an individual with whom Grzeskowiak was previously acquainted developed a blinding eye disease that significantly impaired his vision and ability to read and thus to manage his own financial affairs. In June 2003, that individual asked Grzeskowiak to assist him in paying his personal bills, which she did until April 2013.
Between June 2006 and continuing through April 2013, Grzeskowiak, forged her victim’s signature on more than 800 checks which she made out to herself, endorsed and used to pay her personal expenses, the expenses of others and to gamble. In total, she obtained approximately $2,918,090 from the victim without his authorization.
Additionally, Grzeskowiak filed false tax returns for 2010 through 2012, understating her gross income from the illegal activity described above, resulting in a tax loss of $506,496.
Grzeskowiak, St. Charles, MO, pled guilty to one felony count of wire fraud and three felony counts of filing false tax returns. She appeared before United States District Judge Carol E. Jackson. Sentencing has been set for April 20, 2016.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; each of the tax charges carry a maximum penalty of 3 years in prison and/or fines up to $100,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Richard Finneran is handling the case for the U.S. Attorney's Office.
Lawton Man Charged with Sex Trafficking and Kidnapping of a JuvenileRead the Press Release
Oklahoma City, Oklahoma – Today, CHARLES MICHAEL SEGALOFF (a/k/a "Michael Makai," "Mike Sage," "Daddy," "Poppa," and "Master"), age 59, of Lawton, Oklahoma, has been indicted by a federal grand jury and charged with traveling with intent to engage in illicit sexual conduct with a juvenile, kidnapping, sex trafficking, and enticement of a juvenile, announced Mark Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to the indictment, from December 7, 2015, through December 15, 2015, Segaloff traveled from Lawton, Oklahoma, to Greenwich, New York, and returned to Lawton with a female juvenile under 18 years of age for the purpose of engaging in illicit sexual conduct and to hold the juvenile to form a polyamorous family. Segaloff had previously been charged by complaint in federal court in Oklahoma City and is currently being held in the Logan County Jail.
If convicted, Segaloff faces up to life in prison, a $250,000 fine, and lifetime registration as a sex offender. The public is reminded that the indictment is merely an accusation and that the defendant is presumed innocent unless and until proven guilty. Reference is made to court records for further information.
This case is the result of an investigation by the Federal Bureau of Investigation, the Lawton Police Department, and the New York State Police. The case is being prosecuted by Assistant U.S. Attorney Robert Don Gifford, II, and Special Assistant U.S. Attorney Mark Stoneman.
Kidnapper Sentenced to 15 Years in PrisonRead the Press Release
PHILADELPHIA - Basil Buie, 23, of Philadelphia, PA, was sentenced today to 15 years in prison for his role in a botched robbery and kidnapping that involved a jewelry store employee. Buie, a/k/a “Basil Tucker,” pleaded guilty on October 7, 2015 to conspiracy, kidnapping, and attempted Hobbs Act robbery. His two co-defendants - Khayree Gay and Salahudin Shaheed - also pleaded guilty.
Shaheed recruited Buie and Gay to rob National Watch and Diamond Exchange, at 101 S. 8th Street in Philadelphia to obtain luxury watches, jewelry, and money which Shaheed said could be found there. The defendants conducted surveillance of National Watch and its employees from a parking lot at 733 Chestnut Street, to identify and then, in disguise, abduct an employee from whom they would forcibly obtain keys, security codes, and the code to the company’s safe from which the robbers would steal luxury watches, jewelry, and money.
On April 4, 2015, the defendants watched an employee that Shaheed had targeted. When the employee entered the garage and approached her car, Shaheed and Buie, wearing masks, gloves, and sunglasses, confronted the victim, Shaheed assaulted her with a Taser, and they kidnapped her.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorneys Jeanine Linehan and Maureen McCartney.
Jury Convicts Syracuse Man in Heroin and Crack Cocaine ConspiracyRead the Press Release
SYRACUSE, NEW YORK – A federal jury today convicted Derrick Wilson, a/k/a D-Ellis and Sonny Black, age 36, of Syracuse, of participating in a heroin and crack cocaine conspiracy, following a week-long trial.
The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration (“DEA”) and Syracuse Police Chief Frank L. Fowler.
“This verdict is the culmination of a long investigation into the conduct of people who poisoned our community and destroyed lives by pushing large quantities of heroin and crack cocaine,” stated United States Attorney Richard S. Hartunian. “Thanks to law enforcement collaboration, the leader and all twelve other charged defendants have been convicted, and this drug crew has been dismantled. We are committed to continuing to work together to take drug dealers off the streets of Syracuse and beyond.”
DEA Special Agent in Charge James J. Hunt stated, “Heroin and crack cocaine trafficking is a scourge throughout American cities, large and small. No city is immune from drug addiction as long as there are drug suppliers profiting off the sale of poison. Today's conviction of Derrick Wilson has sent a message to drug traffickers that their illegal profit off drug sales will only lead them to jail and long prison sentences. I commend the U.S. Attorney’s Office Northern District, the Syracuse Police Department and the DEA’s Syracuse Resident Office for their diligent efforts throughout this investigation, prosecution and conviction.”
Syracuse Police Chief Frank L. Fowler stated, “Our department is pleased with the outcome of this federal prosecution. Our joint efforts will make Syracuse safer and we intend to continue these efforts against those that deal or traffic in drugs in our communities. We look forward to continuing our joint efforts in the coming year.”
Wilson faces at least 20 years and up to life in prison when he is sentenced on May 20, 2016 by Chief United States District Judge Glenn T. Suddaby. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
The evidence at trial, some of which was obtained through court-ordered wiretaps, showed that: Wilson was the head of a conspiracy to distribute large quantities of crack cocaine and heroin in the Syracuse area from April 2013 through June 18, 2014, when arrests were made; Wilson made arrangements for heroin and cocaine powder from New York City to be delivered to him in Syracuse; Wilson had the cocaine powder processed into crack cocaine and packaged for sale; Wilson had the heroin packaged in distinctly marked plastic bags for “branding” purposes and distribution; and Wilson had members of the conspiracy sell the crack cocaine and heroin.
Wilson represented himself during the trial, with an assigned attorney present to advise him on legal matters. He was the last of thirteen defendants to be convicted of participating in this conspiracy to distribute heroin and crack cocaine. Wilson’s twelve co-defendants all pled guilty and six of them have been sentenced, while six are scheduled to be sentenced in February and March, as follows:
Name
Age
Residence
Sentence
Jeffrey Dowdell
37
Syracuse, NY
Scheduled for 2/25/2016
Tashawn Albert
28
Syracuse, NY
Scheduled for 2/26/2016
Kyle Dowdell
28
Syracuse, NY
Scheduled for 2/12/2016
Quonta Albert
23
Syracuse, NY
60 months
General Davis, Jr.
29
Clay, NY
130 months
Willie Strong, Jr.
37
Liverpool, NY
120 months
Jamall Harris
36
Syracuse, NY
Scheduled for 3/4/2016
James Handford
38
Syracuse, NY
120 months
Zephaneea Dowdell
33
Syracuse, NY
Scheduled for 3/1/2016
Lashandrea Johnson
31
Syracuse, NY
13 months
James Hudson
25
Syracuse, NY
60 months
Darnyl Apgar
28
Syracuse, NY
Scheduled for 2/29/2016
This case was investigated by the United States Drug Enforcement Administration (“DEA”) and the Syracuse Police Department, with assistance from the Federal Bureau of Investigation (“FBI”), and is being prosecuted by Assistant U.S. Attorneys Carla Freedman and Nicolas Commandeur.
Judge Orders York County Trucking Company to End Repeated Violations of Employment Tax LawsRead the Press Release
Yesterday, a federal court in Rock Hill, South Carolina, ordered Tony McMillan and his trucking company, which he operated under the names T-N-T of York County Inc. and TM Trucking of the Carolinas LLC, to stop violating their employment tax reporting, deposit and payment obligations. The Judgment and Permanent Injunction by Consent requires McMillan and the business to timely file all employment tax returns, to make all required deposits of employment and unemployment taxes and to certify to the Internal Revenue Service (IRS) that they have made these deposits. The injunction also prohibits the defendants from making other disbursements if the business’s current employment taxes are not paid. The injunction also requires McMillan to notify the IRS of any new company he owns, manages, or works for over the next five years.
The government’s complaint alleged that McMillan operated the trucking company since at least 2008 and was routinely late in filing its employment tax returns and paying its employment taxes, when he did so at all. According to the complaint, McMillan also failed to pay over the taxes withheld from his employees’ paychecks. By the time the complaint was filed in June 2015, T-N-T of York County and TM Trucking of the Carolinas together owed more than $2.7 million in federal employment and unemployment taxes for various periods from 2009 through 2014, the complaint stated. The complaint alleged that this pyramiding of taxes had continued in spite of repeated efforts by the IRS to collect the tax and to help McMillan and the business cure the violations.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked IRS Field Collection and its revenue officer for investigating and preparing the civil case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jicarilla Apache Man Sentenced for Assaulting a Federally Commissioned Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Lawrence Roybal, 53, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 60 months in prison followed by three years of supervised release for assaulting a tribal police officer who was commissioned as a federal officer.
“The Department of Justice is dedicated to supporting the courageous men and women who wear the badge and help uphold our Constitution,” said U.S. Attorney Damon P. Martinez. “We will hold accountable those who threaten our public safety by attacking and seeking to harm our nation’s peacekeepers.”
Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division said, “The law enforcement officers who risk their lives every day to keep us safe deserve the best protection we can give them. The FBI is proud to have worked on this case with the U.S. Attorney's Office and the Jicarilla Apache Tribal Police Department. We hope this case sends a clear message this type of crime will not be tolerated.”
“All people are sacred; actions must be made in a split second. The officer involved in this case exhibited a keen insight to remain safe and capture a very dangerous offender without using deadly force,” said Chief Sylvester Stanley of the Jicarilla Apache Tribal Police. “We must remember that all officers have families that love them, and at the end of the day officers must go home safely to be with their families. The Jicarilla Apache Nation is proud of all our brothers in blue.”
Roybal was arrested in May 2015, on a criminal complaint charging him with assaulting an officer with a dangerous weapon. According to the criminal complaint, Roybal attacked a Jicarilla Apache Tribal police officer with a pitchfork on May 11, 2015, in Dulce, N.M., which is within the Jicarilla Apache Indian Reservation in Rio Arriba County, N.M.
Roybal was indicted on June 9, 2015, and charged with assaulting a federal officer who was engaged in the performance of his official duties. The indictment alleges that, at the time of the assault, the victim was a tribal officer commissioned as a special federal officer by the BIA.
On Sept. 3, 2015, Roybal entered a guilty plea to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Hyde Park Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Hyde Park man pleaded guilty yesterday in U.S. District Court in Boston to child pornography charges.
Geraldo Christiano DeSouza, 44, pleaded guilty to one count of possession of child pornography, one count of distribution of child pornography, one count of sexual exploitation of children and two counts of coercion and enticement of a minor to engage in sexual activity. U.S. District Court Judge George A. O’Toole scheduled sentencing for April 26, 2016.
In October 2012, law enforcement identified DeSouza after an undercover officer accessed a peer-to-peer file sharing program and discovered another user offering to share files containing child pornography. Investigators determined that the child pornography had been distributed from DeSouza’s residential address and executed a search warrant. The search uncovered multiple laptops and other computer media in DeSouza’s bedroom. Forensic review of the devices revealed numerous files of child pornography as well as evidence that DeSouza had engaged in sexual activity with a minor. Among other things, DeSouza “chatted” with his minor victims using various forms of social media and a webcam, and directed the minors to display themselves in a sexually explicit manner. Using his cell phone, DeSouza also filmed himself having sexual intercourse with one of his minor victims.
Under the terms of the plea agreement, the parties have agreed to recommend to the Court a sentence of 15 years in prison and five years of supervised release. Following release from prison, DeSouza will be required to register as a sex offender and will face immigration proceedings and removal from the United States.
The charge of possession of child pornography provides a sentence of no greater than 10 years in prison. The charge of distribution of child pornography provides a mandatory minimum sentence of five years and no greater than 20 years in prison. The charge of exploitation of children provides a mandatory minimum sentence of 15 years and no greater than 20 years in prison. The charge of coercion and enticement of a minor to engage in sexual activity each provide a mandatory minimum sentence of 10 years and no greater than a lifetime in prison. All charges also provide for five years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Houston Sex Trafficking Ring Leader Gets Life in Federal PrisonRead the Press Release
A 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 for the Southern District of Texas along with Special Agent in Charge Perrye K. Turner for the FBI Houston Division, 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, 68, on 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 U.S. Attorney 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 for the Southern District of Texas, 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 Special Agent in Charge 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 Special Agent in Charge 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 Special Agent in Charge 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 prostitution. 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 United States. 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, 51. 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 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, 45, and a 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.
Houston Fugitive Indicted for Production of Child PornographyRead the Press Release
HOUSTON – A 36-year-old man who resided in Houston is being sought following the return of a four-count indictment on varying charges related to the production of child pornography, announced U.S. Attorney Kenneth Magidson.
John Ferguson was indicted today for production, receipt, access with intent to view and possession of child pornography. It is believed that he has fled in order to avoid being arrested on these charges. He is considered a fugitive and a warrant remains outstanding for his arrest.
A criminal complaint, filed last month, alleges that Ferguson was accessing numerous files from a website known to contain child pornography. A search warrant was conducted at Ferguson’s residence, at which time authorities seized several items, including computers. On those devices, the criminal complaint alleges that authorities discovered more than 1,000 videos and 13,000 images of child pornography.
The charges allege that in some of the videos an underage girl is seen being sexually assaulted and in lewd and lascivious poses that show her genitalia. According to the criminal complaint, the girl is seen on heavily stained carpet and on a bathroom counter during these acts. The charges indicate that these items match those seen in Ferguson’s residence. What appears to be an adult male with matching characteristics of Ferguson is also seen in the videos, according to the complaint.
As part of the investigation, the images/videos seized were sent to the National Center for Missing and Exploited Children (NCMEC). Subsequently, NCMEC identified several videos that appeared to have been produced by Ferguson, according to the charges. Based on the work of NCMEC and FBI, the child in the videos has been identified.
Ferguson is described as a 36-year-old white male, 5'10" and weighing approximately 180 pounds with brown hair and brown eyes. Investigators believe Ferguson may be driving an older model, silver, two-door Ford Focus. Crime Stoppers of Houston is offering up to $5,000 for information leading to the charging and arrest of Ferguson. If you have information about him or his whereabouts, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the FBI Houston Field Office at 713-693-5000. Tips may also be submitted to the FBI online at https://tips.fbi.gov/. As a public service to the community, Clear Channel Outdoor is donating space and time on its digital billboards throughout the area and statewide to publicize the reward and feature a photo of Ferguson.
If convicted of the production charges, Ferguson faces a mandatory minimum of 15 and up to 30 years in federal prison. For the charge of receipt of child pornography also faces a mandatory minimum of five years up to a maximum of 20. On each count of access with intent to view and possession of child pornography, Ferguson faces another maximum 10 years of imprisonment. Each conviction is also punishable by a possible $250,000 fine. Further, If convicted, upon completion of any prison term imposed, Ferguson faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet. He would also be required to register as a sex offender.
This case, prosecuted by Assistant U.S. Attorney Sherri Zack, 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."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Hobbs Woman Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Ida Rodriguez, 47, of Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in federal prison followed by four years of supervised release for violating federal narcotics trafficking laws.
Rodriguez was arrested on June 10, 2015, on a criminal complaint charging her with possession with intent to distribute methamphetamine in Lea and Doña Ana Counties, N.M. According to the complaint, Rodriguez sold methamphetamine to an undercover DEA agent in July 2014 and Aug. 2014. It also alleged that on Aug. 16, 2015, deputies of the Lea County Sherriff’s Office (LCSO) executed a traffic stop on Rodriguez and found her to be in possession of 168 grams of methamphetamine.
On Aug. 19, 2015, Rodriguez pled guilty to a three-count felony information charging her with distribution of methamphetamine and possession of methamphetamine with intent to distribute. In entering the guilty plea, Rodriguez admitted that (1) she sold 28 grams of methamphetamine to an undercover agent in Hobbs on July 29, 2014; (2) she sold 56 grams of methamphetamine to an undercover agent in Las Cruces, N.M., on Aug. 4, 2014, and (3) on Aug. 16, 2014, she was stopped by LCSO deputies for a traffic violation during which the deputies found 168 grams of methamphetamine in her vehicle. Rodriguez further admitted that she had obtained the methamphetamine in Phoenix, Ariz., and planned to sell it in Hobbs.
This case was investigated by the Las Cruces office of the DEA and the HIDTA Lea County Drug Task Force with assistance from the 5th Judicial District Attorney’s Office for the State of New Mexico. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Harrison County, WV man sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremiah Robert Dodrill, 34, of Spelter, West Virginia, was sentenced today to 21 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced. Jeremiah Dodrill sold heroin in October 2014 near Spelter Park, a playground located in Harrison County, West Virginia. He pled guilty in October 2015 to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.” Jeremiah Dodrill’s wife, Kasandra Faith Dodrill, 27, also of Spelter, allowed the Harrison County, West Virginia residence that she shared with Jeremiah Dodrill to be used to store and distribute heroin. She pled guilty in October 2015 to one count of “Maintaining Drug-Involved Premises – Aiding and Abetting.” She was sentenced today to 4 months in prison. Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated. U.S. District Judge Irene M. Keeley presided.Gloucester County, New Jersey Man Sentenced to Six Years in Prison for Operating Mortgage Foreclosure Rescue, Real Estate Ponzi SchemeRead the Press Release
CAMDEN, N.J. – A Woolwich Township, New Jersey, was sentenced today to 72 months in prison for scamming distressed homeowners into giving him their houses and then soliciting fake real estate investments from private investors – secured by those same properties – that netted him more than $3 million in illicit profits, U.S. Attorney Paul J. Fishman announced.
Randy Poulson, 44, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to Count One of an indictment charging him with mail fraud. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Poulson owned and operated Equity Capital Investments, LLC and Poulson Russo LLC and was the former president of the South Jersey Real Estate Investors Association. Paulson gave speeches, seminars, monthly dinners and various private tutorial sessions, purporting to teach real estate investing tips to individuals who paid fees to attend.
Poulson engaged in a two-pronged scheme. First, he promised to pay the mortgages of distressed homeowners facing foreclosure if they sold their homes to him. Using this method, Poulson obtained the deeds to more than 25 distressed homeowners’ residences, causing them to vacate the homes so renters could move in. Afterwards, Poulson then stopped making the monthly mortgage payments, causing those mortgages to go into foreclosure without the distressed homeowners’ knowledge.
In the second part of the scheme, Poulson solicited seminar attendees and other private investors to invest in Equity Capital Investments, which purportedly bought and sold real estate. Poulson told the investors that their money would be used to acquire and rehabilitate a property, which Poulson claimed he would rent out and then sell for a 10 to 20 percent return on the investment.
The properties for which Poulson solicited the investments were those he acquired in the first part of the scheme. Although Poulson claimed that he would use funds to acquire and rehabilitate those properties, Poulson spent the money on personal expenses and to repay other investors. As a result of the scheme, Poulson was able to fraudulently obtain more than $3 million from investors.
In addition to the prison term, Judge Bumb sentenced Poulson to three years of supervised release and ordered him to pay $2.58 million in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special
Agent in Charge Richard M. Frankel, in Newark, for the investigation leading to today’s sentencing.
The government is represented by Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Gilbert J. Scutti Esq., Somerdale, New Jersey
Glendale Men Charged with Bank Fraud Conspiracy Related to Trademark ScamRead the Press Release
WASHINGTON – Two Glendale residents have been charged in a superseding indictment in connection with a bank fraud scheme involving the proceeds of a mass mailing scam targeting holders of U.S. trademarks.
Artashes Darbinyan, 36, and Orbel Hakobyan, 41, were charged in a superseding indictment that was unsealed today in Los Angeles. The superseding indictment charges both defendants with one count of conspiracy to commit bank fraud. Darbinyan was also charged with four counts of mail fraud, three counts of aggravated identity theft, two counts of concealment money laundering and one count of bank fraud for a separate scheme. Hakobyan was also charged with one count of bank fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Eileen M. Decker of the Central District of California; Inspector in Charge Robert Wemyss of the U.S. Postal Inspection Service (USPIS), Los Angeles Division; Inspector in Charge David G. Bowers of the USPIS, Washington, D.C. Division; and Special Agent in Charge Erick Martinez of the IRS-Criminal Investigation, Los Angeles Field Office made the announcement.
“These defendants are charged with taking money from victims for services they never intended to render,” said United States Attorney Eileen M. Decker. “Although they used technology in an attempt to further and to conceal their crimes, they will now face prosecution.”
According to the superseding indictment, Darbinyan operated and controlled Trademark Compliance Center (TCC) and Trademark Compliance Office (TCO), which purported to offer trademark registration and monitoring services. The superseding indictment alleges that, through TCC and TCO, Darbinyan sent mass solicitations offering, for a fee, trademark registration and monitoring services to holders of trademarks recently registered with the U.S. Patent and Trademark Office, services which Darbinyan did not intend to, and did not, provide. To accomplish this scheme, Darbinyan used the names of other persons to open accounts for TCC and TCO at “virtual office centers” (i.e., businesses that offered call answering and mail forwarding services) in the Washington, D.C., and Los Angeles areas, and directed employees of the Washington, D.C.-area virtual office centers to forward mail addressed to TCC and TCO – envelopes containing payments from trademark holders – to the virtual office centers in the Los Angeles area, the superseding indictment alleges.
The superseding indictment alleges that from September 2013 through September 2015, the defendants perpetrated a bank fraud scheme by passing the mass mailing scam’s proceeds through fake bank accounts, primarily at a Wells Fargo branch in Glendale. According to allegations in the superseding indictment, Darbinyan opened bank accounts using false identities; Hakobyan and Darbinyan deposited the trademark holders’ payments into the Wells Fargo bank accounts and, with the assistance of Wells Fargo bank employees, transferred the funds to other accounts under Darbinyan’s control and either made cash withdrawals or purchased gold with cashier’s checks and wire transfers.
Hakobyan’s separate bank fraud charge arises from allegations that he made a fraudulent withdrawal while impersonating one of the supposed account holders.
“Using false identities, bogus business names, and virtual office centers, the defendants allegedly scammed trademark holders and turned the proceeds to cash and gold,” said Erick Martinez, Special Agent in Charge of the IRS-Criminal Investigation’s Los Angeles Field Office. “This joint investigation continues to demonstrate our efforts to ensure that our financial institutions will not be abused by those serving their own selfish greed at the expense of others.”
The charges and allegations in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The USPIS and IRS-CI investigated the case. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section in Washington is prosecuting the case.
Former-DeKalb County Zoning Board of Appeals Member and Late-Night Business Owner Sentenced for BriberyRead the Press Release
ATLANTA – Former DeKalb County Zoning Board of Appeals Member Jeremy “Jerry” Clark and Ismail Sirdah have been sentenced to federal prison on corruption charges. Clark accepted a bribe from Sirdah in exchange for voting for a zoning variance for Sirdah’s late-night billiard hall in DeKalb County, Georgia.
“This is another unfortunate incident of corruption in DeKalb County,” said U.S Attorney John Horn. “Again, I reiterate that the citizens of DeKalb County expect public officials to act with honestly and integrity. Public officials who may be tempted by money and graft remember; we remain committed to investigating and prosecuting acts of corruption regardless of who commits them or where they are.”
“Today’s sentencing serves as a reminder to not only these defendants but other public officials that there are consequences for such actions as seen in this case. Because of the extensive potential damage involved, the FBI regards public corruption investigations as its number one criminal investigative priority and, as such, urges the public to partner with our agents in reporting those who abuse their public offices,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In November 2008, the DeKalb County (Georgia) Board of Commissioners passed a zoning ordinance that regulated the operation of late-night establishments and nightclubs. As a general matter, the ordinance required that new businesses obtain a Special Land Use Permit if they wanted to operate either as a late-night establishment or as a nightclub. The zoning ordinance provided an exception to the new rule for pre-existing late-night establishments and nightclubs, which allowed those businesses to be exempt from the 2008 zoning ordinance change.
Ismail Sirdah was the owner and Chief Executive Officer of 2841 Investments, Inc., which did business as LuLu Billiards. LuLu Billiards was a pool hall and bar located in Tucker, Georgia, which is located in DeKalb County.
Based on the new zoning ordinance, in November 2011, the DeKalb County Department of Planning and Sustainability informed LuLu Billiards in writing that it was grandfathered in only as a late-night business – and thus could neither operate as a nightclub nor have a dance floor. Despite the notice, Lulu Billiards operated as a nightclub and possessed a dance floor.
In September 2012, the Department of Planning and Sustainability issued a warning to Sirdah through LuLu Billiards for operating as a nightclub with a dance floor. In the warning, Sirdah was again advised that under the new zoning ordinance, LuLu Billiards could not operate as a nightclub or have a dance floor without a Special Land Use Permit.
Sirdah responded that LuLu Billiards had operated as a nightclub prior to the 2008 zoning ordinance – and as a result, should be grandfathered in as a nightclub under the new zoning rule.
Sirdah appealed not being able to operate LuLu Billiards as a nightclub to the DeKalb County Zoning Board of Appeals. The Zoning Board of Appeals hears and decides zoning appeals when a property owner alleges that a county official committed a zoning error. From January 2009 to May 2013, Jeremy Clark served as a member of the Zoning Board of Appeals.
Prior to the hearing on the appeal, Sirdah met with Clark. During those meetings, Sirdah made it clear to Clark, that if the Zoning Board of Appeals approved Sirdah’s petition to operate as a nightclub, Clark would be rewarded.
In November 2012, the Zoning Board of Appeals approved Sirdah’s request to operate as a nightclub. Clark voted in favor of LuLu Billiards being able to operate as a nightclub. In return for the vote, Sirdah paid Clark approximately $2000 in cash and donated approximately $1,500 to a non-profit interest with which Clark was involved.
On February 19, 2015, Clark, 43, of Lithonia, Georgia, pleaded guilty to accepting a bribe from Sirdah. He was sentenced to nine months in prison followed by three years of supervised release and order to pay a $3,500 fine.
On April 2, 2015, Sirdah, 53, of Duluth, Georgia, pleaded guilty to bribing Clark. He was sentenced to six months in prison followed by two years of supervised release and order to pay a $10,000 fine.
These cases were investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis prosecuted the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Ziggies Owner Pleads Guilty to $1.3 Million Tax SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of Ziggies restaurants in Springfield and elsewhere pleaded guilty in federal court today to failing to pay more than $1.3 million in federal payroll taxes.
Agim Zendeli, 43, of Springfield, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to an information that charges him with failure to pay over to the IRS the payroll taxes he collected from his employees.
Zendeli operated a chain of restaurants under the name “Ziggies” in Springfield, Republic, Willard, Marshfield, Nevada, West Plains, Rolla, Carthage and Poplar Bluff in Missouri, and in Fort Scott and Pittsburg in Kansas, from 1998 to 2014.
From March 2004 through December 2014, Zendeli opened and closed 18 companies he formed to operate as Ziggies. For each such company, Zendeli withheld federal income taxes and Social Security and Medicare taxes from his employees’ pay, and the employees believed those amounts had been paid over the IRS on their behalf. However, Zendeli admitted today, he did not pay those amounts over to the IRS as he was required to do.
From 2004 through 2014, Zendeli diverted substantial amounts of money from the restaurant LLCs he owned and operated. During this period, Zendeli lived a lavish lifestyle, and spent substantial sums on vacations, gambling trips, entertainment and luxury vehicles, including three BMWs, two Cadillac Escalades, two Infiniti QX56s, a 2009 Mercedes, a 2008 Acura and a 2004 Land Rover.
In order to avoid IRS collection of past due employment taxes, Zendeli repeatedly formed new entities to continue restaurant operations. Once each company accumulated a large tax debt to the IRS, Zendeli ceased operating under that company’s name and opened a new entity, often in the name of a family member, partner, or employee. Zendeli, however, maintained custody and control of the businesses.
The total tax loss resulting from the scheme for all entities controlled by Zendeli totals $1,330,708, which includes $741,099 in payroll taxes he deducted from his employees’ pay, plus the required employer’s contributions to Social Security, Medicare and unemployment taxes. Under the terms of today’s plea agreement, Zendeli must pay the government $1,330,708 in restitution, as well as statutory interest.
In addition, Zendeli attempted to avoid payment of approximately $654,260 in past due federal and state employment taxes by filing bankruptcy on March 26, 2010. Prior to the bankruptcy, Zendeli divorced his wife and transferred the trademarked name “Ziggies®” to his father, for a token payment. (Funds from the 2011 sale of trade name “Ziggies®” were remitted through Zendeli’s bankruptcy proceedings, after the trustee determined a fraudulent transfer of assets had occurred.)
Under federal statutes, Zendeli is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Former VP Pleads Guilty to Embezzling from Houston Police Federal Credit UnionRead the Press Release
HOUSTON – A 66-year-old former ex-vice president of the Houston Police Federal Credit Union has been convicted of embezzlement that occurred for approximately 18 years, announced U.S. Attorney Kenneth Magidson.
Cheryl Vickers was charged in a criminal information filed Dec. 7, 2015. Today, she appeared before U.S. District Judge Melinda Harmon to enter a plea of guilty to one count of embezzlement. As part of her plea, she admitted that between January 1997 and February 2015 she embezzled at least $1,247,785 from the Houston Police Federal Credit Union while employed there as vice-president of accounting.
The embezzlement was ultimately discovered following her retirement in February 2015. At that time, a credit union customer brought in a “stale” check to have it re-issued. A “stale” check is an old check that has been issued by the credit union but never cashed. When credit union records showed that Vickers had already reissued the stale check, the credit union conducted an audit of Vickers’ banking activity.
The audit revealed that from January 1997 until her retirement, Vickers had embezzled at least $1,247,785 by various means, including, but not limited to, re-issuing stale checks. The credit union maintained a ledger of its stale checks which showed that Vickers reissued stale checks to credit card companies to pay her personal credit card bills. This included a Feb. 4, 2015, reissued stale check in the amount of $7,800 to pay her Chase Bank credit card bill. Some of the reissued checks even had her credit card number hand-written on them
Vickers admitted that while employed at the Houston Police Federal Credit Union, she took credit union money without authorization or permission.
She faces up to 30 years in federal prison at the time of her sentencing. She was permitted to remain on bond pending that hearing.
The charges are the result of an investigation conducted by FBI, with assistance from the Federal Deposit Insurance Corporation – Office of Inspector General. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Former USP-Canaan Inmate Sentenced to 14-Years’ Imprisonment for Stabbing Four Correctional OfficersRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerome Lummus, age 37, was sentenced today to 14 years’ imprisonment by Senior United States District Court Judge Edwin M. Kosik in Scranton for assaulting four correctional officers and inflicting bodily injury.
According to United States Attorney Peter Smith, on August 18, 2015, inmate Jerome Lummus, who was serving a federal prison sentence for drug trafficking, approached a correctional officer in the cafeteria at USP-Canaan and took a sharpened metal knife and stabbed the officer in the upper torso, as well as stabbed three other correctional officers who assisted in subduing Lummus. As a result of the unprovoked attack, the correctional officers all sustained stab wounds which required medical attention, but did not result in any life threatening injury.
Lummus pled guilty to the charges prior to his sentencing. Judge Kosik ordered that the 14-year imprisonment term start after Lummus completed his other sentences.
Lummus was charged in an indictment in September 2015, as a result of an investigation by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney John Gurganus prosecuted the case.
# # #
Former Prison Guard Pleads Guilty in Corruption CaseRead the Press Release
PHILADELPHIA – John Wesley Herder, 49, of Philadelphia, PA, formerly a correctional officer at Philadelphia’s Curran Fromhold Correctional Facility (CFCF), pleaded guilty today to attempted extortion under color of official right, attempted distribution of controlled substances, and making false statements within federal jurisdiction. These charges resulted from Herder’s agreement with a prison inmate to smuggle a cellular telephone and Oxycontin pills into the CFCF in exchange for a $1,000 cash payment, and Herder’s act of lying to the FBI when questioned about his contraband smuggling activities. U.S. District Court Judge Mark A. Kearney scheduled a sentencing hearing for May 16, 2016. Herder was working as a correctional officer at the CFCF in October 2013 when, in exchange for a $1,000 payment, he agreed to smuggle Oxycontin (oxycodone) pills and a cellular telephone into the prison and deliver it to Inmate #1. To obtain his payment and the contraband, Herder agreed to meet with Inmate #1’s associate (“Person #1”) outside the prison. On October 17, 2013, Herder met with Person #1 inside a car in the parking lot of a Walgreens Pharmacy in Philadelphia. During their meeting, Person #1 handed Herder 100 pills, represented to contain OxyContin (oxycodone), a Nokia cellular telephone, and $1,000.00 in cash. At the conclusion of their meeting, Herder told Person #1: “Just tell [Inmate #1] to sit tight and I got it coming to him, ok.” Herder also told Person #1 that he was willing to bring additional contraband into the prison. Between October 17, 2013 and October 29, 2013, Herder smuggled the 100 pills and cellular telephone past prison security and into the CFCF. On October 29, 2013, Herder provided Inmate #1 with all 100 pills and the cellular telephone. On June 18, 2015, federal law enforcement agents interviewed Herder and questioned him about his contraband smuggling activities, and Herder falsely stated that he did not bring contraband into CFCF. Herder faces a statutory maximum sentence of 45 years in prison, forfeiture, possible fines, supervised release, and special assessments. The case was investigated by the FBI with assistance from the Philadelphia Department of Corrections. It is being prosecuted by Assistant United States Attorney Kevin Brenner.Former President Pleads Guilty to Embezzling from UnionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former president of the union representing Jackson County Department of Corrections employees pleaded guilty in federal court today to a wire fraud scheme in which he embezzled more than $7,000 from the union local.
Lowell Wreh, 46, of Raytown, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to an information that charges him with one count of wire fraud.
Wreh was the president of American Federation of State, County and Municipal Employees (AFSCME) Local 1707 from July 2013 until he was suspended in April 2014, and officially dismissed on Aug. 11, 2014. Prior to that, Wreh had been the acting president of Local 1707 since Oct. 20, 2012. AFSCME Local 1707 is a labor organization in Kansas City, Mo., whose members are employed at the Jackson County Department of Corrections.
By pleading guilty today, Wreh admitted that he issued $7,642 in checks from the Local 1707 bank account to himself and others for his own benefit and personal use from January 2013 through Feb. 28, 2014.
Under the terms of today’s plea agreement, Wreh must pay restitution to Local 1707 for the total amount of the loss.
Under federal statutes, Wreh is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Department of Labor - Office of Labor-Management Standards.
Former Madison County, Alabama, Deputy Pleads Guilty to Lying Under Oath to Obstruct Investigation into BeatingRead the Press Release
The Justice Department announced today that Justin Watson, 31, a former deputy with the Madison County Sheriff’s Office in Huntsville, Alabama, has pleaded guilty to obstructing a federal investigation into the beating of a local handyman.
According to evidence presented in court, Watson, while off-duty, got into a bar fight with the handyman. Watson searched for the man over the next several weeks, and when he observed the man driving down the highway, Watson pulled him over and ordered him out of his truck. Watson proceeded to strike the man in the face, hit him with a baton and choke him until he was unconscious. At a later criminal proceeding, Watson knowingly and falsely claimed, under oath, that he had never seen the man before the traffic stop and that he had not gotten into a bar fight with the man.
“This deputy, who was sworn to uphold the law, brazenly chose to violate it,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We cannot, and will not, tolerate police officers who lie under oath to obstruct the pursuit of justice.”
“My office is committed to investigating allegations of police misconduct, and prosecuting cases where appropriate, in order to ensure that everyone in our community can expect fair treatment from law enforcement,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Any law enforcement officer who tries to interfere with an investigation into police misconduct should expect scrutiny for that misbehavior, as well. The vast majority of police officers perform their duties with integrity, even in difficult and trying situations, and support efforts to prosecute officers who commit misconduct. We appreciate that professionalism and want the public to be aware that we are committed, alongside of our state and local law enforcement colleagues, to ensuring that police officers behave in a fair and lawful manner.”
Watson faces a maximum sentence of 20 years in federal prison. He will be sentenced at a later date.
This case was investigated by the FBI, and was prosecuted by Assistant U.S. Attorney Mary Stuart Burrell of the Northern District of Alabama and Trial Attorney Christopher Perras of the Criminal Section of the Civil Rights Division.
Watson Plea Agreement
Former Madison County Deputy Pleads Guilty to Lying Under Oath to Obstruct Investigation into BeatingRead the Press Release
HUNTSVILLE – Former Madison County Sheriff’s Deputy Justin Watson, 31, pleaded guilty today to obstructing a federal investigation into the beating of a local handyman, U.S. Attorney Joyce White Vance and the Justice Department announced.
According to evidence presented in court, Watson, while off-duty, got into a bar fight with the handyman. Watson searched for the man over the next several weeks, and when he observed the man driving down the highway, Watson pulled him over and ordered him out of his truck. Watson proceeded to strike the man in the face, hit him with a baton and choke him until he was unconscious. At a later criminal proceeding, Watson knowingly and falsely claimed, under oath, that he had never seen the man before the traffic stop and that he had not gotten into a bar fight with the man.
“This deputy, who was sworn to uphold the law, brazenly chose to violate it,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We cannot, and will not, tolerate police officers who lie under oath to obstruct the pursuit of justice.”
“My office is committed to investigating allegations of police misconduct, and prosecuting cases where appropriate, in order to ensure that everyone in our community can expect fair treatment from law enforcement,” Vance said. “Any law enforcement officer who tries to interfere with an investigation into police misconduct should expect scrutiny for that misbehavior, as well. The vast majority of police officers performs their duties with integrity, even in difficult and trying situations, and supports efforts to prosecute officers who commit misconduct. We appreciate that professionalism and want the public to be aware that we are committed, alongside of our state and local law enforcement colleagues, to ensuring that police officers behave in a fair and lawful manner.”
Watson faces a maximum sentence of 20 years in federal prison. He will be sentenced at a later date.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Mary Stuart Burrell and Trial Attorney Christopher Perras of the Criminal Section of the DOJ Civil Rights Division.
# # #
Former Controller of Non-Profit Organization That Funds Medical Research Sentenced in Manhattan Federal Court to Four Years in Prison for Embezzling over $2 Million and Tax EvasionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that KAREN ALAMEDDINE, a/k/a “Karen Dean,” the former controller of a New York-based non-profit organization whose core mission is to cure genetic illnesses by supporting biomedical research (the “Non-Profit”), was sentenced in Manhattan federal court to four years in prison for embezzling more than $2 million from the Non-Profit, and to tax evasion for deliberately failing to report to the Internal Revenue Service (“IRS”) as income the money she embezzled. ALAMEDDINE was sentenced today by United States District Judge Gregory H. Woods.
Manhattan U.S. Attorney Preet Bharara said: “Karen Alameddine’s brazen theft of over $2 million was not just a breach of her duties of loyalty and honesty to her employer, it was a federal crime that diverted much-needed funds from biomedical research that could help to cure genetic illnesses. Thanks to the work of the IRS and the Postal Inspection Service, Alameddine will now pay the price for her faithless conduct.”
According to the Complaint, the Indictment, guilty plea, and proceedings in Manhattan federal court:
From approximately late 2008 through early 2014, while working as the controller for the Non-Profit, ALAMEDDINE diverted over $2 million of the Non-Profit’s funds to her own bank accounts and for her own personal use. ALAMEDDINE executed the scheme principally by disguising QuickBooks entries to make transfers to her personal bank account appear as if they were transfers made to pay grant recipients of the Non-Profit. ALAMEDDINE further sought to disguise the fraud by inventing a fictitious accounting firm named “Davis & Greene,” purportedly based in Washington, D.C., which was, according to ALAMEDDINE, retained to prepare certain tax returns for the Non-Profit for the 2012 and 2013 tax years.
After ALAMEDDINE fraudulently transferred the funds from an account belonging to the Non-Profit to a personal bank account, she further transferred the funds to other accounts she controlled, and thereafter used those funds for various personal expenses, including to pay personal bills. Among the personal items ALAMEDDINE paid for with the embezzled money were utility bills, car payments, jewelry, the purchase of a recreational vehicle, her personal mortgages, and leisure travel. In addition to the fraudulent diversions, ALAMEDDINE carried out her embezzlement scheme by secretly procuring a credit card in the Non-Profit’s name and using it to pay for personal expenses; by submitting fraudulent requests for reimbursement for expenses she falsely claimed to have incurred; and by making illicit transfers from the Non-Profit’s bank account purportedly to pay for expenses related to hiring of temporary help to assist with certain accounting and payroll functions but which, in truth, were never actually incurred.
In addition, for each of the calendar years 2009 through 2013, ALAMEDDINE filed tax returns with the IRS in which she deliberately omitted reporting the income she received from the fraud. Those deliberate omissions resulted in ALAMEDDINE’s evasion of a total of over $640,000 in income tax for the years 2009 through 2013.
* * *
ALAMEDDINE, 58, of Perris, California, who has been in custody since her arrest in November 2014, pled guilty to one count of wire fraud and one count of tax evasion. In addition to her prison term, ALAMEDDINE was ordered to pay $2,674,983 in restitution, including $1,934,000 to the Non-Profit and $640,000 to the IRS. ALAMEDDINE was also ordered to forfeit $1,828,000 in proceeds she obtained from the embezzlement offense.
Mr. Bharara praised the outstanding investigative work of the IRS and the U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Stanley J. Okula is in charge of the prosecution.
Former Clerk at Cook County Recorder of Deeds Admits Accepting Cash Bribe in Exchange for Preparing Fraudulent Real Estate DeedRead the Press Release
CHICAGO — A former clerk for the Cook County Recorder of Deeds pleaded guilty today to accepting a cash bribe in exchange for preparing a back-dated deed on an Oak Park home and agreeing to record it with her office.
REGINA TAYLOR accepted the $200 bribe from an individual who purportedly wanted to add a relative’s name to the deed of a residence in Oak Park, according to a written plea agreement. Unbeknownst to Taylor, the individual was actually an undercover law enforcement agent, the plea agreement states.
Taylor, 59, of Chicago, pleaded guilty to one count of honest services mail fraud. The conviction carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
U.S. District Judge Sara L. Ellis scheduled a sentencing hearing for April 13, 2016, at 10:30 a.m.
According to the plea agreement, the fraudulent quit claim deed was created to add the purported relative as a fourth owner of the Oak Park property. Taylor directed the undercover agent not to tell anyone that the three other individuals on the deed were deceased, according to the plea agreement. Taylor then prepared the fraudulent deed and back-dated it by 18 months, confirming the purported relative as a grantee.
After giving the fraudulent deed to the undercover agent to have it stamped at the Village of Oak Park, the undercover agent gave Taylor $200 in cash, according to the plea agreement. Taylor further directed the undercover agent to bring back the stamped copy of the fraudulent deed so that Taylor could officially file it at the Office of the Cook County Recorder of Deeds.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant United States Attorney Megan Cunniff Church.
Plea Agreement
First Defendant Sentenced to Federal Prison in Eagle Ford Shale Oil Theft CaseRead the Press Release
In Del Rio today, 50-year-old Juan Martin Bernal of Eagle Pass, TX, was sentenced to 21 months in federal prison for his role in a scheme to steal an estimated $1.4 Million worth of Eagle Ford Shale oil announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In addition to the prison term, United States District Judge Alia Moses ordered that Bernal pay a monetary judgment of $150,000 and to be placed on supervised release for a period of three years after completing his prison term.
Last year, Bernal and his two co-defendants--26–year-old Carlos Samuel Pena of Del Rio and 38-year-old Victor Manuel Guerra, Jr., owner of Las Lomas Vacuum Services and AVG Vacuum Services in Laredo, TX--pleaded guilty to one count of theft from an interstate shipment. By pleading guilty, the defendants admitted that between January 2011 and August 2014, they devised a scheme to steal oil from multiple energy companies operating in the South Texas’ Eagle Ford Shale using Guerra’s wastewater removal trucks. Those companies included a company Bernal worked for, Newfield Exploration Company, and a company that employed Pena, Anadarko Petroleum Corporation.
According to court documents, Guerra’s company had no contract or permission to be on Newfield or Andranko property. However, Bernal and Pena covertly allowed Guerra’s wastewater trucks onto Newfield and Andranko properties where the drivers, in collusion with the defendants, would take oil. The pilfered oil was then transported to Guerra’s property where Guerra would sell the stolen product for financial gain to third-party buyers who would pay for the oil via wire transfer.
Guerra and Pena face up to ten years in federal prison. Guerra’s sentencing is scheduled for April 25, 2016. Pena’s sentencing is scheduled for June 20, 2016. Both hearings are scheduled to take place in Del Rio before Judge Moses.
This case resulted from an investigation conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) Criminal Investigation, Texas Attorney General’s Special Investigations Unit, Bexar County District Attorney’s Office, Texas Department of Public Safety, Texas Rangers, Dimmit County Sheriff’s Office, and the Texas Railroad Commission. Assistant United States Attorneys Bryan Nathan Reeves and Timothy Adam Duree are prosecuting this case on behalf of the Government.
Federal Grand Jury Indicts Registered Sex Offender on Child Pornography ChargesRead the Press Release
NORFOLK, Va. – Eduardo Bueno, 41, of Portsmouth, was indicted by a federal grand jury today on charges of distribution and possession of child pornography.
According to the indictment and other court documents, law enforcement authorities were alerted when a customer attempted to save images of minors engaging in sexually explicit conduct on their internet cloud account. Homeland Security Investigations and the Portsmouth Police Department identified the user of the account as Eduardo Bueno. Further investigation revealed that Bueno is a registered sex offender, previously having been convicted of child sexual abuse in Massachusetts. Bueno initially was arrested on January 5, 2016, pursuant to a criminal complaint and remains incarcerated pending trial.
Bueno faces a mandatory minimum penalty of 5 years’ imprisonment and a maximum penalty of 20 years in prison on each count if convicted. The minimum and maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Norfolk Office, made the announcement after the grand jury returned the indictment. This case was investigated by Homeland Security Investigations with the assistance of the Portsmouth Police Department. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-8.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Family Members Convicted in Benefits Fraud CaseRead the Press Release
LAS VEGAS, Nev. – A brother and sister have been convicted by a federal jury of multiple felony counts for using false identities to steal almost $300,000 in unemployment funds and other federal benefits, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. Two other family members were also convicted of fraud for their part in the scheme to unlawfully obtain unemployment compensation funds.
Frederick Vernon Williams, 35, his sister Jacqueline Louisa Gentle, 27, his wife, Denise Allison Williams, 36, and his other sister, Carolyn Shelmadine Willis-Casey, 40, all of Belize, were convicted on Friday, Jan. 15. The trial lasted for 10 days and was presided over by U.S. District Judge James C. Mahan.
“The defendants used false identities and lied on passport applications to steal federal benefits from multiple agencies, including the Departments of Labor, Agriculture, Education, Health and Human Services, and the Social Security Administration,” said U.S. Attorney Bogden. “We will continue to use federal laws to prosecute benefits thieves who steal from all Americans through greed and fraud.”
Frederick Williams and Jacqueline Gentle were convicted of conspiracy to commit mail fraud, aggravated identity theft, mail fraud, theft of government money, making a false statement in application for a passport, and making false citizenship claims. Gentle was also convicted of misuse of a U.S. passport and misuse of a social security number. Denise Williams and Carolyn Willis-Casey were each convicted of one count of mail fraud.
Frederick Williams faces up to 290 years in prison, plus two to four years consecutive for the two aggravated identity theft counts, and not more than $4.75 million in fines. Gentle faces up to 83 years in prison, plus two years consecutive for the aggravated identity theft count, and not more than $2 million in fines. Denise Williams and Willis-Casey face up to 20 years in prison and not more than $250,000 in fines. They are scheduled to be sentenced on April 18, beginning at 10:00 a.m.
According to the court records and evidence submitted at trial, from about August 2010 to June 2012, defendants Frederick Williams and Jacqueline Gentle, citizens of Belize, conspired to register two fictitious companies, Luna Consulting and Centro America Export, with the State of Nevada, Department of Employment, Training, and Rehabilitation (DETR). After the companies were registered with DETR, the defendants conspired to submit fraudulent wage information for 16 fictitious employees, including themselves. After submitting the fraudulent wage information, the defendants submitted fraudulent unemployment compensation claims to DETR, and obtained unemployment compensation payments totaling approximately $218,000. The unemployment compensation payments were transferred to the defendants by means of Nevada debit cards mailed to the fictitious employees, which the defendants and co-defendants used to withdraw cash from ATM’s.
Frederick Williams and Gentle also made false statements in applications for U.S. passports by stating that their father was a U.S. citizen and by stating in other government paperwork that they were U.S. citizens, when they well knew that they were not citizens of the United States but were citizens of Belize.
Frederick Williams and Gentle also falsely stated that they were U.S. citizens in applications for other government benefit programs such as social security, federal student aid (Pell grants), food stamps, and Medicaid. Williams was able to fraudulently obtain approximately $33,184 in social security benefits, $10,900 in Pell grants, $33,814 in food stamp benefits, and $1,132 in Medicaid benefits.
Denise Williams fraudulently caused DETR to pay unemployment benefits in her name, and Carolyn Willis-Casey caused a notice for payment of unemployment benefits to be sent to her.
The case was investigated by the U.S. Department of State Diplomatic Security Service, the Offices of the Inspector General for the U.S. Department of Labor, Social Security Administration, U.S. Department of Agriculture, U.S. Department of Education, and U.S. Department of Health and Human Services, and Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney J. Gregory Damm.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Detroit drug dealer pleads guilty to Federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit heroin dealer pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Lawrence Watson, 21, entered his guilty plea in federal court to distribution of heroin.
Watson admitted that on June 12, 2014, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at a residence on Elaine Drive in Rand. After the drug deal, officers executed a search warrant on the residence and found Watson in the house. During the search, officers discovered additional heroin and recovered the money used in the controlled drug purchase from Watson’s pocket.
Watson faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 25, 2016.
The Metropolitan Drug Enforcement Network Team investigated the case. Assistant United States Attorney John J. Frail is in charge of the prosecution. The defendant entered his guilty plea before United States District Judge Thomas E. Johnston.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Defendant Sentenced to 30 Years for Kidnapping and Violently Assaulting Three Victims on the Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of DARRELL ALAN LUSSIER, 36, to 360 months in federal prison for kidnapping and violently assaulting three victims on the Red Lake Indian Reservation. On September 3, 2015, following a four-day trial, a federal jury found LUSSIER guilty of all counts. The defendant was sentenced on January 20, 2016 before Judge Richard H. Kyle in U.S. District Court in Duluth, Minn.
As proven at trial, on February 9, 2015, LUSSIER used his fists and feet to assault victim G.L.M. after the two individuals got into a verbal argument with each other at G.L.M.’s home. The defendant continued to brutally beat the victim before wrapping a shoelace around the victim’s neck in an attempt to strangle him. LUSSIER then threw the victim into a crawlspace beneath the home. After assaulting G.L.M., LUSSIER brutally assaulted two other victims, D.M.R., who is legally blind, and D.M.R.’s sister, N.L.R., and then threw them into the crawlspace before leaving the house. The three victims were found the next day and taken to the Red Lake Hospital and subsequently transferred to Sanford Hospital in Fargo, all suffering from traumatic brain injuries and various broken bones and other injuries.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.
These cases resulted from an investigation conducted by the Federal Bureau of Investigation and the Red Lake Police Department.
This case was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
DARRELL ALAN LUSSIER, 36
Red Lake, Minn.
Convicted:
-
Kidnapping, 3 counts
- Assault Resulting in Serious Bodily Injury, 3 counts
Sentenced:
-
360 months in prison
-
Five years supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
-
DeWayne Watts Sentenced for Role in Darkode Computer Hacking ForumRead the Press Release
PITTSBURGH - A Florida resident has been sentenced in federal court to two years probation and six months home confinement on his conviction of violating the CAN-SPAM ACT, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on DeWayne Watts, 28, of Hernando, Florida. Watts was one of 12 individuals charged in connection with a significant computer hacking forum known as Darkode, which has been dismantled.
According to information presented to the court, Watts knowingly used a protected computer to relay or retransmit multiple commercial electronic mail messages with the intent to deceive or mislead recipients.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Watts.
Dallas Securities Broker Sentenced to 36 Months in Federal Prison on Securities Fraud ConvictionRead the Press Release
DALLAS — Wade Lawrence, 43, of Dallas, a securities broker, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 36 months in federal prison, following his guilty plea in September 2015 to a felony Information charging one count of securities fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Lynn also ordered that Lawrence pay $1,542,966 in restitution and forfeit $126,074 in proceeds traceable to the offense, in the form of a money judgment, representing the proceeds from the sale of his residence. He was ordered to surrender to the Bureau of Prisons on March 15, 2016.
According to documents filed in the case, from June 2008 through July 2011, Lawrence worked as a securities broker by Oppenheimer & Co. Inc., in Dallas and was active in conducting trades in his customer brokerage accounts. In 2010 and 2011, Lawrence began to lose significant amounts of money, both in his clients’ trading accounts and his individual trading account. In August 2011, Lawrence moved to Southwest Securities in Dallas, where his trading losses continued.
Beginning in January 2012 and continuing through September 2013, Lawrence engaged in a scheme to defraud to obtain funds from individuals, with whom many he had longstanding personal and business relationships and who trusted him. He falsely offered for sale various investments, including real estate ventures and securities outside the brokerage accounts at Southwest Securities. He also offered interests in what he represented were a high-risk investment in options on the Volatility Index (VIX) on the Chicago Board Options Exchange.
Lawrence also solicited funds from several individuals by falsely representing they would be invested in a duplex. He falsely represented to other investors that their money would be invested in various securities such as in Facebook and Southwest Securities.
Lawrence represented to investors that their investments would return anywhere from 20 to 100 percent, and that it was possible to double their investment. In each case, he directed the investor to mail or wire-transfer funds to his personal account at Wells Fargo Bank, instead of a Southwest Securities account, giving various explanations for this, including that he was trying to start his own VIX fund and needed to establish a history for the fund.
Lawrence, however, only invested some of the investors’ money as represented. Instead, he spent several hundred thousand dollars of the proceeds for personal living expenses, including travel, mortgage payments on his Dallas residence, and a $10,000 piece of jewelry. In total, Lawrence obtained approximately $2,124,000 from the scheme. He returned approximately $581,034 to some of the investors.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The FBI investigated the case. Assistant U.S. Attorney Christopher Stokes prosecuted.
# # #
Conspirators in Illegal Commercial Driver License Scheme SentencedRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Ellariy Medvednik (49, Oviedo) to one year in federal prison and a fine of $30,000 for conspiring to aid and abet the unlawful production of Florida driver licenses and commercial driver licenses (“CDLs”). Natalia Dontsova (50, Tarzana, CA) was previously sentenced to 10 months in federal prison for the same offense. A third co-conspirator, Adrian Salari, remains at large.
According to court documents, Medvednik, Dontsova, and Salari were affiliated with Larex, Inc., a commercial truck driving school. Larex marketed itself to Russian speakers online. Individuals residing out-of-state seeking to obtain Florida CDLs contacted Larex’s owner, Medvednik, to arrange for Larex’s services at a cost of approximately $2,000. Those individuals then traveled to Florida to obtain their CDLs with the intention of returning to their home states immediately afterward. However, to obtain a Florida CDL, an individual must first possess a Florida driver license. The State of Florida restricts its driver licenses and CDLs to Florida residents. Medvednik, Dontsova, and Salari conspired to provide false documentation that the individuals resided with them, so that the individuals could obtain Florida driver licenses.
Larex also assisted the students with additional requirements for obtaining a CDL. Dontsova, using covert communication equipment, provided answers to the students during the written portion of the CDL exam, the successful completion of which led to the issuance of a commercial learner’s permit. She was paid $1,000 by each applicant she had assisted.
As a result of this scheme, the State of Florida is requiring hundreds of CDL holders associated with Larex and its affiliates to be retested to ensure that they are properly certified.
“The sentencing of Ellariy Medvednik and Natalia Dontsova for aiding and abetting the unlawful production of commercial driver licenses, and Florida driver licenses, is a clear signal that strong penalties await those that would seek to decrease safety on the Nation’s roadways,” said Marlies T. Gonzalez, DOT OIG regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to prevent, detect and prosecute violations of laws and regulations, CDL and otherwise, designed to ensure the public’s safety.”
This case was investigated by the U.S. Department of Transportation’s Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Chicago Man Sentenced for Mailing Bomb Threats and Threats of Violence Against Southern Illinois UniversityRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today that Derrick Dawon Burns, 23, of Chicago, Illinois, was sentenced in federal court in reference to four federal charges stemming from a series of bomb threats and threats of violence directed toward the Southern Illinois University Carbondale (SIUC) students, faculty and staff on October 10, 2012, October 15, 2012, December 6, 2012, and October 1, 2013. Three of these letters were entitled "The War on SIU." Each letter was addressed to a combination of the following targets: Southern Illinois University, staff, students, SIU police, and the FBI. The United States District Court in Benton sentenced Burns to 24 months’ imprisonment, two years supervised release, and a $400 special assessment
The investigation was conducted by the SIUC Department of Public Safety, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistance was provided by the Carbondale Police Department, the Illinois Secretary of State Bomb Squad, the Jackson County Sheriff’s Department, and the Illinois State Police. The case was prosecuted by Assistant U.S. Attorney William E. Coonan.
Chester County Man Sentenced for Possession of Explosives, Fraud, and Weapons OffensesRead the Press Release
PHILADELPHIA - Istvan Merchenthaler, 45, formerly 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 United States District Court Judge Robert F. Kelly 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 (2) 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 United States 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 United States 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 United States Attorneys Vineet Gauri, Jason Kellhofer, and Adam Ake in the United States Attorney’s Offices for the Eastern District of Pennsylvania, Eastern District of North Carolina, and the District of Maryland, respectively.
Career Offender from Arizona Sentenced to 262 Months for Conviction on Federal Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE –Matthew Maley, 48, of Tucson, Ariz., was sentenced today in federal court in Las Cruces, N.M., to 262 months (almost 22 years) in prison followed by ten years of supervised release for his conviction on methamphetamine trafficking and firearms charges. Maley’s sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Lt. Bobby Holden, Commander of the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force.
In announcing Maley’s sentence, U.S. Attorney Damon P. Martinez said that Maley, a career offender whose criminal history includes three prior drug trafficking convictions, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of 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 Doña Ana County, N.M., under this initiative.
“Catching drug-traffickers and sending them to prison requires teamwork,” said FBI Special Agent in Charge Terry Wade. “The FBI worked closely on this case with the U.S. Attorney’s Office and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. We will continue to develop and use our law enforcement partnerships to keep our communities safe.”
“This case is a prime example of multiple agencies working together to make New Mexico a safer place for its citizens,” added Lt. Bobby Holden, Commander of the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force.
Maley and his four co-defendants Jennifer Sanders, 43, Jose Luis Niño, 41, and Aubrey Savage, 36, all of Las Cruces, and Candice Marie Carpenter, 36, of Tucson, were charged in a 14-count superseding indictment filed in March 2014. The superseding indictment charged Maley, Sanders and Savage with participating in a conspiracy to distribute methamphetamine in Doña Ana County from June 2013 through Aug. 2013, and Maley, Nino and Carpenter with conspiracy to distribute methamphetamine in Doña Ana County in Dec. 2013. The superseding indictment also charged the defendants with various substantive methamphetamine trafficking offenses, and Maley and Niño were charged with being felons in possession of firearms and ammunition. The four co-defendants entered guilty pleas to various counts of the superseding indictment while Maley elected to exercise his right to a jury trial.
Maley proceeded to trial on Sept. 22, 2014, on five methamphetamine trafficking charges and a felon in possession of a firearm and ammunition charge. Before the case was submitted to the jury, the court entered a directed verdict of acquittal on one of the drug charges. The trial concluded on Sept. 25, 2014, when the jury returned a verdict of guilty against Maley on four methamphetamine trafficking charges and the firearms charge.
The trial evidence established that Maley was the head of a drug trafficking organization that distributed significant quantities of methamphetamine in New Mexico and Arizona. During July and Aug. 2013, undercover officers made several controlled purchases of methamphetamine from Maley, Sanders and Savage, including the purchase of a pound of methamphetamine on Aug. 21, 2013. From Oct. through Dec. 2013, an informant purchased methamphetamine from Niño, who obtained the methamphetamine from Maley, and on Dec. 4, 2013, officers seized approximately 274 grams of methamphetamine when they executed a search warrant at Niño’s residence in Las Cruces.
On June 11, 2014, Savage pled guilty to a conspiracy count, and was sentenced on Feb. 25, 2015, to 60 months in federal prison followed by four years of supervised release.
On July 16, 2014, Niño pled guilty to conspiracy, possession of methamphetamine with intent to distribute, and felon in possession of ammunition. At sentencing, Niño faces a mandatory minimum of ten years in prison and a maximum of life in prison. His sentencing hearing has not yet been scheduled.
On July 18, 2014, Sanders pled guilty to conspiracy and seven counts of distribution of methamphetamine. At sentencing, Sanders faces a mandatory minimum of ten years in prison and a maximum of life in prison. Her sentencing hearing has yet to be scheduled.
On Sept. 18, 2014, Carpenter pled guilty to conspiracy to distribute methamphetamine and distribution of methamphetamine.
This case was investigated by the Las Cruces office of the FBI and HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
California Men Charged with Bank Fraud Conspiracy Related to Trademark ScamRead the Press Release
Two residents of Glendale, California, were charged in a superseding indictment in connection with a bank fraud scheme involving the proceeds of a mass mailing scam targeting holders of U.S. trademarks.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Inspector in Charge Robert Wemyss of the U.S. Postal Inspection Service (USPIS) Los Angeles Division, Inspector in Charge David G. Bowers of the USPIS Washington, D.C., Division and Special Agent in Charge Erick Martinez of the Internal Revenue Service-Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
Artashes Darbinyan, 36, and Orbel Hakobyan, 41, were charged in a superseding indictment that was unsealed today in the Central District of California with one count of conspiracy to commit bank fraud. Darbinyan was also charged with four counts of mail fraud, three counts of aggravated identity theft, two counts of concealment money laundering and one count of bank fraud for a separate scheme. Hakobyan was also charged with one count of bank fraud.
According to the superseding indictment, Darbinyan operated and controlled Trademark Compliance Center (TCC) and Trademark Compliance Office (TCO), which purported to offer trademark registration and monitoring services. The superseding indictment alleges that, through TCC and TCO, Darbinyan sent mass solicitations offering, for a fee, trademark registration and monitoring services to holders of trademarks recently registered with the U.S. Patent and Trademark Office, services which Darbinyan did not intend to, and did not, provide. To accomplish this scheme, Darbinyan used the names of other persons to open accounts for TCC and TCO at “virtual office centers” (i.e., businesses that offered call answering and mail forwarding services) in the Washington, D.C., and Los Angeles areas, and directed employees of the Washington, D.C.-area virtual office centers to forward mail addressed to TCC and TCO – envelopes containing payments from trademark holders – to the virtual office centers in the Los Angeles area, the superseding indictment alleges.
The superseding indictment alleges that from September 2013 through September 2015, the defendants perpetrated a bank fraud scheme by passing the mass mailing scam’s proceeds through fake bank accounts, primarily at a Wells Fargo branch in Glendale. According to allegations in the superseding indictment, Darbinyan opened bank accounts using false identities; Hakobyan and Darbinyan deposited the trademark holders’ payments into the Wells Fargo bank accounts and, with the assistance of Wells Fargo bank employees, transferred the funds to other accounts under Darbinyan’s control and either made cash withdrawals or purchased gold with cashier’s checks and wire transfers.
Hakobyan’s separate bank fraud charge arises from allegations that he made a fraudulent withdrawal while impersonating one of the supposed account holders.
The charges and allegations in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The USPIS and IRS-CI investigated the case. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section is prosecuting the case.
CEO of New Jersey Engineering Consulting Firm Sentenced to One Year in Prison for Role in Unemployment Insurance Fraud ConspiracyRead the Press Release
Also Failed to Collect More Than $100,000 in Payroll Taxes
TRENTON, N.J. – The head of an engineering consulting firm in Wall Township, New Jersey, was sentenced today to 12 months and a day in prison for a scheme in which several of his employees fraudulently collected unemployment benefits while he paid the remaining portion of their salaries, U.S. Attorney Paul J. Fishman announced.
Lino DeAlmeida Jr., 67, of Point Pleasant, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to defraud the N.J. State Division of Unemployment Insurance (NJUI) and one count of failing to collect Social Security, Medicare, and income payroll taxes. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
DeAlmeida operated an engineering consulting firm, Consolidated Construction Management Services (CCMS) in Wall Township. In late 2011, DeAlmeida told his four employees that due to financial difficulties, he could not continue paying their salaries. He proposed a scheme in which the employees would claim to have been terminated from CCMS and seek unemployment benefits from the NJUI. In return, he promised to continue to pay them “under the table” for the remaining portion of their salaries that would not be covered by the benefits. Three of the CCMS employees agreed to the scheme and submitted false applications with the NJUI.
DeAlmeida’s employee/conspirators received a total of $130,363 in benefits between July 2011 and January 2013 while receiving CCMS checks from DeAlmeida. In addition, DeAlmeida failed to pay payroll taxes of $109,068 on the undisclosed wages of $790,860 he and his conspirators received during the scheme.
In addition to the prison term, Judge Wolfson sentenced DeAlmeida to two years of supervised release, fined him $10,000, ordered him to pay restitution of $138,532 to NJUI and pay his unpaid federal corporate and personal taxes.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
Defense counsel: Jeffrey D. Smith Esq., Teaneck, New Jersey
Businessman Sentenced for Marketing and Selling Unapproved Remedies for CancerRead the Press Release
PROVIDENCE, R.I. – James Feijo, 68, owner and operator of Daniel Chapter One, a Portsmouth, R.I., based company, was sentenced yesterday to 6 months in federal prison to be followed by 6 months home confinement for marketing and selling products not approved by the U.S. Food and Drug Administration (FDA) and failing to pay more than $218,000 in employment taxes due the IRS, announced United States Attorney Peter F. Neronha, George M. Karavetsos, Director, FDA’s Office of Criminal Investigations, and Kristina O’Connell, Acting Special Agent in Charge of IRS Criminal Investigation.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Feijo to serve 3 years supervised release and to pay restitution in the amount of $218,408.04 owed to the IRS. Feijo pleaded guilty on September 11, 2015, to introduction of a new unapproved drug and tax evasion.
“People facing difficult, even life-threatening, health challenges are often susceptible to the kinds of deceptive schemes cooked up by the defendant here,” said United States Attorney Peter F. Neronha. “Whether in this context or in others, those who prey on the hopes and fears of the most vulnerable deserve the full attention of law enforcement. A stretch in federal prison is more than appropriate for this defendant. The people who relied on his greed-motivated, baseless claims of ‘cure’ deserved much better.”
“The FDA’s drug approval process ensures that patients receive safe and effective medications,” said George M. Karavetsos, Director, FDA’s Office of Criminal Investigations. “When criminals evade the FDA process and sell their non-FDA approved products to our most vulnerable consumers, we will take action to protect the public’s health.”
At the time of his guilty plea, Feijo admitted to the court that he engaged in the marketing, sale and distribution of unapproved cancer treatment health products and supplements which were not generally recognized as safe and effective for use by the FDA. Additionally, the products, as marketed, were not generally recognized as safe and effective by qualified experts for the cure, mitigation, treatment, or prevention of cancer. The products were marketed and sold through various websites, in-store advertisements, a call center, on Feijos’ daily radio program, and through the use of promotional materials and publications.
In addition, at the time of his guilty plea, Feijo admitted to the court that from 2006 through 2011, he falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One. During that time, Feijo failed to issue IRS Wage and Tax Statements accounting for employees’ wages and taxes withheld. Feijo admitted that Daniel Chapter One employees were paid by checks written out to cash, and that for at least sixteen quarters he failed to collect, account for and pay over employment taxes due the IRS totaling $218,408.04.
“Business owners like Mr. Feijo have an important responsibility to collect and turn over all withholding taxes,” said Kristina O’Connell, IRS Criminal Investigation Acting Special Agent in Charge. “Those who fail to do so gain a competitive advantage which will not be tolerated. Employment tax fraud also impacts employees, who may see future benefits such as Social Security reduced because their employer did not comply with the law."
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the Rhode Island FDA Task Force and IRS Criminal Investigation.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Bookkeeper Sentenced for Stealing $414,000 from Bethesda Company EmployerRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Amy Ranee Powell, age 41, of Huntingtown, Maryland today to 30 months in prison followed by three years of supervised release for interstate transportation of stolen money in connection with a scheme to embezzle over $414,000 from her employer. Judge Messitte also entered an order that Powell forfeit and pay restitution of $414,122.02.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, from 2003 to 2013, Powell worked for an architectural firm in Bethesda, Maryland as a bookkeeper and office manager. She wrote checks from the company’s bank account to pay the company’s bills. The company’s owner endorsed the number of blank checks needed to pay the bills, and then gave the checks to Powell to be completed.
Powell admitted that from December 2010 through September 2013, she wrote at least 82 unauthorized checks from the company’s account, payable to herself. The checks ranged in amounts from $500 to $8,000. On occasion, Powell concealed her fraud by falsifying the check stubs for the unauthorized checks, making it appear that legitimate bills had been paid.
Powell admitted that she diverted at least $414,122.02 from the company’s bank account and deposited those funds into her own bank account. According to evidence presented to the court, Powell spent all or nearly all of the funds she stole, including the following: at least $18,070 on tickets for Washington’s NFL team, at least $17,157 on wedding expenses, at least $2,994 at a florist, $2,855 at a consumer electronics store, and thousands of dollars more on vacations and numerous expensive meals.
United States Attorney Rod J. Rosenstein commended the Montgomery County Police Department, Financial Crimes Section for its work in the investigation and thanked Special Assistant U.S. Attorney Sumon Dantiki and Assistant U.S. Attorney Sujit M. Raman, who prosecuted the case.
Atlantic County, New Jersey, Man Admits Role in Large-Scale Crack Cocaine Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. – A Pleasantville, New Jersey, man today admitted participating in a nearly three-year conspiracy to distribute cocaine and crack cocaine in the Atlantic City, New Jersey area, U.S. Attorney Paul J. Fishman announced.
Ronald Douglas Byrd, 51, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to Count One of an indictment charging him with conspiring with others to distribute more than 280 grams of crack cocaine.
According to documents filed in this case and statements made in court:
From February 2012 through Dec. 10, 2014, Byrd admitted that he and others engaged in a drug trafficking conspiracy through which Byrd distributed more than one kilogram of crack cocaine. Members of the conspiracy used Byrd’s Pleasantville residence and at least two other residences in Pleasantville and Absecon to store and package cocaine and crack cocaine.
The distribution conspiracy charge to which Byrd pleaded guilty is punishable by a minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Sentencing is scheduled for June 10, 2016.
Byrd is the sixth person to plead guilty to participating in this drug trafficking conspiracy. Kareem Taylor, 41, of Atlantic City; Talib Tiller, 43, of Mays Landing, New Jersey; John Wellman, 41, of Somers Point, New Jersey; and Phillip Horton, 50, of Los Angeles, California, have all pleaded guilty and await sentencing. Francisco Alberto Rascon-Muracami, 22, of Obregon, Mexico, was sentenced Oct. 30, 2015 to 70 months in prison. Trial for the remaining defendants is scheduled for May 23, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s plea.
He also thanked the N.J. State Police; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Michael Huff Esq., Philadelphia
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Michael Stewart, 56, of Albuquerque, N.M., pleaded guilty today in federal court to a methamphetamine trafficking charge. Under the terms of his plea agreement, Stewart will be sentenced to 135 months in federal prison followed by a term of supervised release to be determined by the court.
Stewart, whose lengthy criminal history includes felony convictions for cocaine and methamphetamine trafficking, robbery, kidnapping and theft, is being prosecuted 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 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.
Stewart was arrested on Feb. 19, 2015, after DEA task force officers seized 611.9 gross grams of methamphetamine and more than $24,000.00 in cash from him and his vehicle during a traffic stop in northwest Albuquerque. Stewart was subsequently indicted on the same charge on March 10, 2015.
The indictment also included forfeiture allegations requiring Stewart to forfeit $25,370.00 to the United States. The court previously entered an order in a related civil proceeding forfeiting the cash to the United States.
During today’s change of plea hearing, Stewart pled guilty to the indictment and admitted that on Feb. 18, 2015, he was in possession of 543.3 grams of actual methamphetamine which he intended to distribute to others. Stewart remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque offices of the DEA and Homeland Security Investigations and the Bernalillo County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Shana B. Long. Assistant U.S. Attorney Stephen R. Kotz handled the civil forfeiture proceedings.
19 January 2016
Yemeni National Pleads Guilty to Conspiring to Kill U.S. Soldiers in AfghanistanRead the Press Release
Defendant Received Military-Type Training from al-Qaeda and then Went to Afghanistan with the Taliban to Fight against U.S. Forces
Ali Alvi al-Hamidi, 31, a Yemeni national, pleaded guilty today to conspiring to murder U.S. nationals abroad, conspiring to provide material support to al-Qaeda and receiving military-type training from al-Qaeda. The guilty plea took place before U.S. District Judge Nicholas G. Garaufis of the Eastern District of New York. At sentencing, al-Hamidi faces a maximum of life imprisonment.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York and Assistant
Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office.
“Ali Alvi al-Hamidi went to the FATA to join al-Qaeda, received training from the terrorist organization, and later fought alongside the Taliban against coalition forces in Afghanistan,” said Assistant Attorney General Carlin. “With this plea, he will be held accountable for his terrorist activity, including conspiring to kill members of our military. The highest priority of the National Security Division is countering terrorist threats, and we will continue to use all tools available to bring justice to those who seek to harm American servicemen and women who bravely risk their lives in defense of our nation.”
“Today’s significant guilty plea demonstrates this office’s unwavering commitment to bring to justice those who fight against U.S. forces or assist al-Qaeda and others in their efforts to kill Americans at home or abroad,” said U.S. Attorney Capers.
“As we witnessed today, those who support designated foreign terrorist organizations like al Qaeda and seek to harm people will be held fully accountable under the law,” said Assistant Director in Charge Abbate. “On a daily basis, the FBI and its partners face the challenge of an ever evolving threat environment. Through our partnerships, both international and domestic, the FBI continues to track down those who aid and abet terrorist groups and ensure that they are brought to justice.”
In early 2008, al-Hamidi traveled to the Federally Administered Tribal Areas (FATA) of Pakistan to join al-Qaeda. Once there, he received training from al-Qaeda in the use of weapons, explosives and detonators. During late spring and summer of 2008, al-Hamidi moved on to Afghanistan with Taliban forces for the purpose of fighting members of the U.S. military and coalition forces stationed there.
The defendant also aided Bryant Neal Vinas, a U.S. citizen, in joining al-Qaeda. Vinas traveled to Pakistan from Long Island, New York, hoping to join al-Qaeda and fight U.S. military forces in Afghanistan. After participating in al-Qaeda’s military training program, Vinas and senior al-Qaeda external operations leadership devised a plan to conduct an attack on the Long Island Railroad in New York. Vinas was arrested in 2008 before he could carry out this attack, and pleaded guilty in 2009 to conspiracy to murder U.S. nationals, providing material support to a foreign terrorist organization and receiving military-type training from a foreign terrorist organization. Vinas is currently incarcerated pending sentence.
Assistant Attorney General Carlin joined U.S. Attorney Capers in extending his grateful appreciation to the FBI’s Washington Field Office. The case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda of the Eastern District of New York, with assistance provided by Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section.
Yemeni National Pleads Guilty to Conspiring to Kill U.S. Soldiers in AfghanistanRead the Press Release
Earlier today, Ali Alvi al-Hamidi, a Yemeni national, pleaded guilty to conspiring to murder U.S. nationals abroad, conspiring to provide material support to al-Qaeda, and receiving military-type training from al-Qaeda. Today’s guilty plea took place before United States District Judge Nicholas G. Garaufis. At sentencing, al-Hamidi faces a maximum of life imprisonment.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, John P. Carlin, Assistant Attorney General for National Security, and Paul M. Abbate, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.
“Today’s significant guilty plea demonstrates this office’s unwavering commitment to bring to justice those who fight against U.S. forces or assist al-Qaeda and others in their efforts to kill Americans at home or abroad,” stated United States Attorney Capers. Mr. Capers extended his grateful appreciation to the FBI’s Washington Field Office for their efforts.
“Ali Alvi al-Hamidi went to the FATA to join al-Qaeda, received training from the terrorist organization, and later fought alongside the Taliban against coalition forces in Afghanistan. With this plea, he will be held accountable for his terrorist activity, including conspiring to kill members of our military,” said Assistant Attorney General Carlin. “The highest priority of the National Security Division is countering terrorist threats, and we will continue to use all tools available to bring justice to those who seek to harm American servicemen and women who bravely risk their lives in defense of our nation,” said Assistant Attorney General Carlin.
“As we witnessed today, those who support designated foreign terrorist organizations like al Qaeda and seek to harm people will be held fully accountable under the law,” said FBI Assistant Director in Charge, Abbate. “On a daily basis, the FBI and its partners face the challenge of an ever evolving threat environment. Through our partnerships, both international and domestic, the FBI continues to track down those who aid and abet terrorist groups and ensure that they are brought to justice.”
In early 2008, al-Hamidi traveled to the Federally Administered Tribal Areas (FATA) of Pakistan to join al-Qaeda. Once there, he received training from al-Qaeda in the use of weapons, explosives, and detonators. During late spring and summer 2008, al-Hamidi moved on to Afghanistan with Taliban forces for the purpose of fighting members of the United States military and coalition forces stationed there.
Alvi also aided U.S. citizen Bryant Neal Vinas entry into al-Qaeda. Vinas had traveled to Pakistan from Long Island hoping to join al-Qaeda and fight U.S. military forces in Afghanistan. After participating in al-Qaeda’s military training program, Vinas and senior al-Qaeda external operations leadership devised a plan to conduct an attack on the Long Island Railroad in New York. Vinas was arrested in 2008 before he could carry out this attack. Vinas pleaded guilty in 2009 to conspiracy to murder U.S. nationals, providing material support to a foreign terrorist organization, and receiving military type training from a foreign terrorist organization. He is currently incarcerated pending sentence.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Zainab Ahmad, Michael P. Canty, and Douglas M. Pravda are in charge of the prosecution, with assistance provided by Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section.
The Defendant:
ALI ALVI AL-HAMIDI
Age: 31
Nationality: YemeniE.D.N.Y. Docket No. 15-CR-56
Wilkes-Barre Man Indicted for Drug Trafficking and Firearm OffensesRead the Press Release
SCRANTON. The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted a man from Wilkes-Barre, Pennsylvania for drug trafficking and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Thomas Abreu, Jr., age 34, with possessing with intent to distribute heroin on July 26, 2015. The indictment also charges Abreu, a convicted felon, with possessing three stolen firearms in furtherance of his heroin trafficking activities.
The investigation is being conducted by the Bureau of Alcohol, Tobacco and Firearms Enforcement, and by the Wilkes-Barre Police Department. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
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.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic of the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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.
The maximum penalty under federal law is life 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.
# # #
West Michigan Jury Convicts Chicago-Based Bank Robber, Dominick T. Johnson, of Participating in Three Kalamazoo-Area RobberiesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced that Dominick T. Johnson, 33, of Chicago, Illinois, has been convicted by a federal jury of seven crimes: conspiracy to commit bank robbery, three counts of armed bank robbery, and three counts of brandishing a firearm during and in relation to a crime of violence. The Honorable Gordon J. Quist presided over the two-week trial. Under existing law, Johnson faces a mandatory minimum of 67 years in federal prison when he is sentenced.
According to the proofs at trial, Johnson planned and served as the get-away driver for three completed bank robberies in and around Kalamazoo: the May 29, 2014, robbery of PNC Bank in Galesburg, the July 29, 2014, robbery of Comerica Bank in Comstock Township, and the January 8, 2015, robbery of Old National Bank in Oshtemo Township. Johnson’s half-brother, Nathan Benson, previously pled guilty for his role in the robberies. In all three robberies, Benson brandished a loaded firearm and pointed it at bank employees. In two of the robberies, Benson forced the employees into the bank’s vault. The conspiracy also involved three planned bank robberies that were unsuccessful; two were disrupted by law enforcement and one was prevented by a traffic accident.
U.S. Attorney Miles praised law enforcement’s thorough investigation and commitment to solving and preventing the consummated and planned robberies. "Going into a bank or any business with a loaded weapon to steal money creates extraordinary risk and can have a lasting effect on the victims even when no one is hurt," said U.S. Attorney Miles. "The planner and organizer of these kinds of robberies—who emboldens and encourages his criminal associates—is just as dangerous, sometimes even more so, as the person he persuades to enter the bank."
"It goes without saying that this level of threat and violence cannot, and will not, be tolerated in our communities," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Seeing that Mr. Johnson and his co-conspirator are off the streets raises the level of safety of our community, both for our citizens and our businesses."
The investigation was led by the FBI and the Kalamazoo County Sheriff’s Office. Other assisting agencies were the Michigan State Police, the Kalamazoo Department of Public Safety, the Baroda-Lake Township Police Department, the Galesburg Police Department, and the Van Buren County Prosecutor’s Office.
Assistant U.S. Attorneys Justin M. Presant and Hagen W. Frank prosecuted the case.
END
Virginia Man Charged with Anti-Gay Hate Crime for AssaultRead the Press Release
RICHMOND, Va. – James William Hill III, 34, of Chester, was charged today with a federal hate crime under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for a May 2015 assault on a victim known as C.T. in the indictment.
According to the indictment, on or about May 22, 2015, Hill did willfully cause bodily injury to C.T by assaulting C.T., including by punching the victim, because of C.T.’s actual and perceived sexual orientation.
Hill faces a maximum penalty of 10 years in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Principal Deputy Assistant Attorney General Vanita Gupta; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the indictment was returned. Assistant U.S. Attorney S. David Schiller, and Trial Attorney Ryan Murguía of the Civil Rights Division’s Criminal Section are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for the defendant’s name.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Virginia Man Charged with Anti-Gay Hate Crime for AssaultRead the Press Release
James William Hill III, 34, of Chester, Virginia, was charged today with a federal hate crime under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for a May 2015 assault on a victim known as C.T. in the indictment.
The indictment was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
According to the indictment, on or about May 22, 2015, Hill did willfully cause bodily injury to C.T by assaulting C.T., including by punching the victim, because of C.T.’s actual and perceived sexual orientation.
If convicted, the defendant faces a maximum sentence of 10 years in prison and a $250,000 fine.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI’s Richmond Division. The case is being prosecuted by Assistant U. S. Attorney S. David Schiller of the Eastern District of Virginia and Trial Attorney Ryan Murguía of the Civil Rights Division’s Criminal Section.
Hill Indictment
United States Attorney Benjamin B. Wagner’s Statement on the Passing of Former U.S. Marshal Jerry EnomotoRead the Press Release
United States Attorney Benjamin B. Wagner released the following statement today on the passing of Retired U.S. Marshal and prominent civil rights leader Jerry Enomoto:
“With the passing of Retired U.S. Marshal Jerry Enomoto, this region has lost a courageous advocate for social justice and equal opportunity. Despite living through one of the most shameful times in our history, as one of the thousands of Japanese-Americans interned during World War II, Jerry’s life was not defined by the adversity he faced, but by his advocacy for civil rights and peaceful progress.
Jerry dedicating his life to the service of others, earning many ‘firsts,’ including being the first Asian American to receive a presidential appointment to the Office of United States Marshal. It was in this role that I first worked with Jerry, and I had the pleasure of collaborating with him often over the years on a variety of civil rights issues. In 2002, Jerry retired from his post as U.S. Marshal, but he continued to serve the Sacramento region through his chairmanship of the U.S. Attorney’s Greater Sacramento Hate Crimes Task Force, and his work as co-chair, along with his wife Dorothy, of the annual Martin Luther King Jr. Celebration Event.
Jerry was one of Sacramento’s most honorable citizens, and his enduring legacy is in the countless lives he touched, and the next generation of civil rights leaders he helped to inspire.”
Ulster County Real Estate Developer Pleads Guilty to Conspiring to Receive A Kickback and to Defraud Construction LenderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL BARNETT, a real estate developer, pled guilty to conspiring to defraud lenders and make false statements to the U.S. Department of Housing and Urban Development (“HUD”) in connection with his development of Vineyard Commons, a luxury residential complex in Ulster County, New York.
Manhattan U.S. Attorney Preet Bharara said: “Michael Barnett admitted today to engaging in a fraudulent scheme to defraud both his construction lender and HUD in order to receive hundreds of thousands of dollars in kickbacks. Thanks to the investigative efforts of the HUD Inspector General’s Office, Barnett will now be made to pay for his criminal conduct.”
According to BARNETT’s admissions in court during his plea allocution and the allegations made in the Superseding Indictment:
BARNETT, who was the developer of Vineyard Commons, sought kickbacks and investments from subcontractors and vendors on the project and made false statements to the project’s lender so that he could draw down on the project’s line of credit. BARNETT arranged with two executives of a vendor who provided rough carpentry and lumber supplies on the project (the “Lumber Company”) to have the Lumber Company pay Barnett a kickback in exchange for BARNETT’S award to the Lumber Company of the Vineyard Commons contract, as well as future business on other developments BARNETT was planning. To raise funds for the kickback, BARNETT and the two Lumber Company executives agreed that the Lumber Company would inflate its bid for labor and materials by approximately $865,000.
BARNETT and the Lumber Company executives intended that the kickback would be funded unwittingly by the construction lender, and ultimately by HUD through its guaranty of the construction loan, through the submission of false and inflated requests to draw down the construction loan.
In January 2010, the Lumber Company made a partial kickback payment of $200,000 to BARNETT, and the Lumber Company executives disguised the transaction on the Lumber Company’s books by making it appear to be a customer rebate payable to a company controlled by BARNETT that was not involved in the development of Vineyard Commons. BARNETT then used the $200,000 as a partial payment of an obligation he had to the general contractor on Vineyard Commons.
BARNETT also solicited subcontractors and vendors on the Vineyard Commons project, including the Lumber Company, to provide labor and materials to build a pool house at his home. Some of these subcontractors and vendors, including the Lumber Company, agreed to do so.
Finally, BARNETT submitted false invoices to the construction lender in order to enrich himself fraudulently by drawing down the loan.
BARNETT faces up to five years in prison, a fine of up to $250,000 or twice the gross loss or gain from the offense, an order of $1,334,620 in restitution, and an order to forfeit $200,000.
Mr. Bharara thanked the Department of Housing and Urban Development, Office of the Inspector General, for its outstanding work on the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael Maimin and James McMahon are in charge of the prosecution.
Two pill dealers prosecuted for Federal drug crimes in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – Two defendants were prosecuted today in federal court for drug crimes involving pain pills, announced Acting United States Attorney Carol Casto.
Karen Sue Fields, 45, of Olive Hill, Kentucky, was sentenced to three years and a month in federal prison for possession with intent to distribute oxycodone and alprazolam. Fields previously pleaded guilty to the federal drug crime in September of 2015. On July 6, 2014, a motorist flagged down an officer with the Huntington Police Department on 5th Street in Huntington. The motorist alerted the officer to another vehicle driving erratically on 5th Street. The officer located the vehicle, operated by Fields, and conducted a traffic stop after Fields made several abrupt turns in an attempt to evade the officer. During the course of the stop, the officer observed multiple bags of pills in the floorboard of the vehicle. After conducting a search, the officer located over 800 oxycodone tablets and over 50 alprazolam tablets. Fields admitted she had purchased the pills for $17,500 and was on her way back to Kentucky to deliver the pills to another individual.
Derrick Bernard Pritchett, 32, of Detroit, pleaded guilty to illegally selling prescription pills. On August 10, 2015, a confidential informant working with the DEA Task Force contacted Pritchett to arrange a drug deal. Pritchett met the informant on the 1200 block of Jackson Avenue in Huntington and sold the informant nine 30 mg oxycodone pills and one 2 mg alprazolam pill. Pritchett faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 25, 2016.
The Huntington FBI Drug Task Force and Huntington Police Department conducted the investigation of Fields. The investigation of Pritchett was conducted by the DEA Task Force. Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. The hearings were held before Chief United States District Judge Robert C. Chambers.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-