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19 January 2016
Denham Springs Woman Pleads Guilty to Embezzlement of over $600,000Read the Press Release
U.S. Attorney Kenneth A. Polite announced that KRISTEN KOENIG, a/k/a KRISTEN BARNES, age 41, of Denham Springs, pled guilty today to one count of bank fraud.
According to court records, KOENIG was hired to do accounting work for a Jefferson Parish business. From September of 2011 through July of 2014, KOENIG embezzled $601,822.90 from her client by forging her name on company checks and manipulating internal computer/accounting records.
KOENIG faces a sentence of up to thirty years in prison, up to $250,000 in fines, and up to three years of supervised release. U.S. District Judge Jay C. Zainey set sentencing on April 19, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, along with assistance from the Internal Revenue Service and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Edward J. Rivera is in charge of the prosecution.
Corpus Christi Firefighter Sentence for Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Justin Ryan Serna, 28, of Corpus Christi, has been ordered to prison for sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson. Serna pleaded guilty in October 2015.
Today, Senior US. District Judge John D. Rainey sentenced Serna to 15 years in federal prison to be immediately followed by 10 years of supervised release. He must also register as a sex offender.
At the hearing, the victim's father gave a statement explaining how the crime effected his daughter and family.
Serna came to the attention of authorities after they discovered electronic images on a notebook computer of a juvenile female engaged in a sexual act. After further investigation, law enforcement learned Serna enticed the juvenile female to engage in the sexually explicit conduct with the purpose of producing a visual depiction of the activities. Law enforcement identified the juvenile female who confirmed the activities. Authorities also learned many of the communications Serna had with the juvenile occurred while Serna was employed as a Corpus Christi firefighter.
Serna was arrested on the federal charges in July 2015 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Colleton County Man Sentenced to 30 Years in Prison for Child Pornography OffensesRead the Press Release
Contact Person: Dean H. Secor (843) 266-1654
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Michael Robert Bixby, age 32, of Cottageville, South Carolina was sentenced today in federal court in Charleston, South Carolina, to a total of 360 months (30 years) for Receipt of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(2), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B). Last March, Bixby plead guilty to those counts pursuant to a plea agreement in which Bixby agreed to a total sentence of 360 months (30 years). Senior United States District Judge Patrick Michael Duffy of Charleston sentenced Bixby to 360 months and 240 months in federal prison on those counts, respectively, to run concurrently. Judge Duffy also ordered Bixby to serve a lifetime term of supervised release after he is released from prison.
Evidence presented at the change of plea hearing established that Bixby engaged in sexually explicit conduct with a minor female in Colleton County on August 4, 2012, and he used a cell phone to take pictures of that conduct. When deputies with the Colleton County Sheriff’s Office arrested Bixby in North Charleston on August 9, 2012, those pictures were on his cell phone along with other images of child pornography that Bixby received from the internet, including images of prepubescent minors. At the time of the offenses, Bixby was a registered sex offender who had recently moved from Indiana to South Carolina without notifying Indiana or South Carolina authorities.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the Colleton County Sheriff’s Office. Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Clovis Man Sentenced to Twelve and a Half Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Michael Montoya, 37, of Clovis, N.M., was sentenced today in federal court in Albuquerque, N.M., to 151 months in prison for his methamphetamine trafficking conviction. Montoya will be on supervised release for ten years following his incarceration. Montoya was also ordered to pay a money judgment in the amount of $60,000.00.
Montoya and his co-defendants, Brian Acuna, 23, and Dianna Hernandez-Trujillo, 24, both of Clovis, N.M., and Alexander Page, 28, of Tucumcari, N.M., were arrested in Nov. 2013, on a six-count indictment charging them with trafficking methamphetamine in three New Mexico counties. Count 1 charged Montoya and his co-defendants with conspiracy to distribute methamphetamine in Curry County, N.M., between Oct. 2007 and Nov. 2013. Count 2 charged Montoya with possession of methamphetamine with intent to distribute on Oct. 11, 2011 in Curry County. Count 3 charged Montoya and Acuna, and Hernandez-Trujillo with possession of methamphetamine with intent to distribute on March 27, 2012, in Cibola County. Count 4 charged Montoya and Page with possession of methamphetamine with intent to distribute on Nov. 7, 2012, in Socorro County. Count 5 charged Montoya with money laundering for purchasing a residence with money derived from a drug trafficking activity on Sept. 22, 2010. Count 6 charged Acuna with using and carrying a firearm in relation to a drug trafficking crime on March 27, 2012, in Cibola County.
On Oct. 1, 2015, Montoya pled guilty to Count1 of the indictment charging him with conspiracy to distribute methamphetamine and Count 5 charging him with money laundering. In his plea agreement, Montoya admitted arranging for drivers to travel to California in vehicles he provided so that they could transport methamphetamine from his sources of supply. Montoya then distributed the methamphetamine in New Mexico. He also admitted being the owner of the 1.7 kilograms of methamphetamine seized from Acuna on March 27, 2012, and the 1.2 kilograms of methamphetamine seized from Page on Nov. 7, 2012, as well as providing the vehicles Acuna and Page were driving. In entering his guilty plea, Montoya also admitted that on Sept. 22, 2010, he purchased a residence in Clovis with proceeds from his ongoing narcotics activities. He also admitted that drug trafficking proceeds were his only source of income from 2005 through 2011, and that he did not file federal income tax returns on that income during those years.
On July 7, 2015, Page pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Page admitted that he was stopped for driving 85 miles per hour in a 35 mile per hour zone by a deputy of the Socorro County Sheriff’s Office on Nov. 7, 2012, while traveling near Socorro, N.M. During a search of the vehicle driven by Page, the deputy found approximately 1259 grams of methamphetamine in a hidden compartment in the vehicle. At the time, Page was transporting the methamphetamine to Clovis where the drugs were to be sold and where Page was to be paid for transporting the drugs. Page was sentenced on Nov. 30, 2015 to 27 months in prison followed by three years of supervised release.
Acuna pled guilty on June 26, 2014, to Counts 1 and 3 of the indictment, charging him with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. He also pled guilty to Count 6 of the indictment, charging him with using and carrying a firearm in relation to and in furtherance of a drug trafficking crime. In entering his guilty plea, Acuna admitted that on March 27, 2012, he and a co-defendant were stopped by police while transporting methamphetamine from California to Clovis. At the time of the stop, Acuna and the co-defendant knew that a large quantity of methamphetamine was concealed in a secret compartment in the vehicle and that additional methamphetamine was in a backpack in the vehicle. Acuna also admitted that he had a revolver and ammunition in the vehicle for protection.
At sentencing, Acuna faces a mandatory minimum of 10 years to a maximum of life imprisonment on the methamphetamine trafficking charges. On the gun charge, Acuna faces a mandatory minimum of five years in prison which must be served consecutive to any sentence imposed on the drug charges. Acuna remains in federal custody pending his sentencing hearing, which has not yet been scheduled.
Hernandez-Trujillo has entered a not guilty plea to the indictment and is participating in a judicial pretrial diversion program. Charges in indictments are merely accusation and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and IRS-Criminal Investigation, Curry County Sheriff’s Office and City of Clovis Police Department. Assistant U.S. Attorneys Sean J. Sullivan and Jennifer M. Rozzoni are prosecuting this case.
Clarksburg man sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Larry D. Saunders, 40, of Clarksburg, was sentenced today to 21 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Saunders sold heroin in April 2015 near a Harrison County, West Virginia playground. He pled guilty in September 2015 to one count of “Distribution of Heroin within 1,000 feet of a Protected Location – Aiding and Abetting.”
Assistant U.S. Attorney Stephen Vogrin and former Assistant U.S. Attorney Shawn Morgan prosecuted Saunders 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.
Career Offender from California Sentenced to Twenty Years for Conviction on Federal Drug Trafficking and Firearms Charges in New MexicoRead the Press Release
ALBUQUERQUE – Marcos Anthony Correa, 31, of San Bernardino, Calif., was sentenced today in federal court in Albuquerque, N.M., to 20 years in prison followed by five years of supervised release for his methamphetamine trafficking and firearms convictions.
The sentence was announced by U.S. Attorney Damon P. Martinez, 8th Judicial District Attorney Donald Gallegos, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Pete N. Kassetas of the New Mexico State Police.
U.S. Attorney Damon P. Martinez said that Correa, a career criminal, 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 felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“I am very grateful for this program and for the U.S. Attorney’s Office’s efforts to get violent career criminals off our streets. It is important that our communities know about the local/state/federal cooperation that is holding these criminals accountable,” said 8th Judicial District Attorney Donald Gallegos.
Correa was charged in a four-count indictment filed on Aug. 12, 2014, with possession of methamphetamine and heroin with intent to distribute, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm. The indictment was subsequently superseded on Sept. 9, 2014, to reflect an increase of the quantity of methamphetamine involved. Correa was charged with committing the four offenses on May 30, 2014, in Colfax County, N.M. At the time, Correa was prohibited from possessing firearms or ammunition because he previously had been convicted of multiple felony offenses, including evading a peace officer, possession of a controlled substance for sale, transporting a controlled substance with a participation in a criminal street gang enhancement and possession of heroin, resisting an officer.
Court records reflect that Correa was arrested on May 30, 2015, on related-state charges filed in the 8th Judicial District Court for the State of New Mexico in Colfax County, N.M. The state charges were dismissed in favor of federal prosecution.
On June 4, 2015, Correa pled guilty to possession of methamphetamine with intent to distribute and using a firearm in relation to a drug trafficking crime. In entering the guilty plea, Correa admitted that on May 30, 2014, he possessed 87.3 grams of 100% pure methamphetamine that he intended to deliver to another person. He further admitted possessing a semiautomatic pistol and ammunition in order to protect himself and his drugs in the event someone tried to rob him.
“This case highlights the impact we continue to have through the “worst of the worst” initiative. We will continue to work together and pursue those who threaten our community through the smuggling and distribution of illegal and dangerous drugs,” said DEA Special Agent in Charge Will R. Glaspy.
“I commend the outstanding investigative efforts of all our law enforcement partners. ATF will continue to utilize the full weight of the federal firearms to reduce violent crime in New Mexico,” stated ATF Special Agent in Charge Thomas G. Atteberry.
“The New Mexico State Police is committed to the safeguarding of our citizens and such apprehension of violent offenders is indicative of our ongoing efforts,” said New Mexico State Police Chief Pete N. Kassetas. “We will continue partnering with law enforcement to ensure our citizens are safe and criminals are removed from the communities they jeopardize.”This case was investigated by the Albuquerque offices of the DEA and ATF and the New Mexico State Police, with assistance from the 8th Judicial District Attorney’s Office. Assistant U.S. Attorney Samuel A. Hurtado prosecuted the case.
Bradford County Man Sentenced to Five Years in Prison for Possessing Child Pornography and Wire FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 69-year-old Sayre, Pennsylvania resident was sentenced today to five years in prison by Senior U.S. District Court Judge Richard P. Conaboy in Scranton for possessing child pornography and participating in a wire fraud scheme.
According to United States Attorney Peter Smith, the defendant, Harold Schrader pleaded guilty in January 2015 to charges filed in November 2014. Schrader admitted that he possessed child pornography on a computer in 2012, and participated in a fraud scheme during 2008-2011. The fraud scheme involved using the internet to solicit overseas loans from others totaling more than $200,000. Those loans were never repaid.
The charges against Schrader resulted from an investigation by the Department of Homeland Security and the Pennsylvania State Police.
Judge Conaboy also ordered Schrader to pay $232,500 in restitution to victims of the fraud scheme. Schrader must also serve five years on supervised release following his prison sentence, register as a sex offender, undergo sex offender treatment, and comply with sex offender registration requirements.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Binghamton Man Pleads Guilty to Sex Trafficking and Prostitution of A ChildRead the Press Release
BINGHAMTON, NEW YORK – Alphonso Dennis, age 34, of Binghamton, New York, pleaded guilty on Friday to 4 counts of sex trafficking of a child and 2 counts of prostitution of a child.
The announcement was made by United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, and New York State Police Superintendent Joseph A. D’Amico.
Sentencing is scheduled for May 27, 2016 before Senior United States District Judge Thomas J. McAvoy. Dennis faces a minimum term of 10 years and up to life in prison, as well as a minimum period of supervised release – to be served following his release from prison – of 5 years and up to life. 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. Upon release, Dennis will also have to register as a sex offender.
From about August 2014 to November 2014, in Broome County, Dennis hosted two minors at his apartment, who met with men in that apartment for the purpose of engaging in sex acts for money. Dennis also transported and caused the minors to be transported to various locations in order to meet with men, all for the purpose of having the minors engage in commercial sex acts. Throughout this time period, the minors were 15 years old and 14 years old, respectively, and Dennis knew that they were minors.
Using a cell phone and while in his apartment, Dennis took photos and caused photos to be taken of the minors in sexually provocative poses when they were barely dressed, and then used those photographs in advertisements placed on an Internet advertising site.
As men called the phone number listed in the advertisements, Dennis arranged for the men to meet with the minors. Dennis told the minors how much money to charge the men and required that the minors surrender to him 50% of the money that they received from the men.
The prosecution stems from an investigation into a child prostitution ring conducted by the Federal Bureau of Investigation, the New York State Police, and the Vestal Police Department.
The case is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Attorney General Loretta E. Lynch Statement on Recent Police Officer ShootingsRead the Press Release
Attorney General Loretta E. Lynch released the following statement on recent police officer shootings:
“I am appalled and deeply saddened by the recent shooting attacks against law enforcement officers in Danville, Ohio, and Holladay, Utah, in addition to an earlier ambush in Philadelphia, which left an officer injured. These heinous assaults are reminders of the difficult jobs that our brave law enforcement officers perform every day and of the dangers that they willingly face in the service of their communities. The Department of Justice is dedicated to supporting the courageous men and women who wear the badge and determined to do all that we can to keep them safe. We stand ready to offer any and all appropriate resources to help hold accountable those who threaten our communities, attack our neighbors and seek to harm the peacekeepers within our nation.”
Atlantic City Man Sentenced to 30 Months in Prison for Conspiring with Alleged Members of Organized Crime Family and Others in Fraud SchemeRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 30 months in prison for assisting members and associates of an organized crime family in a fraud scheme, U.S. Attorney Paul J. Fishman announced.
John Parisi, 54, previously pleaded guilty before U.S. District Judge Robert B. Kugler to conspiring to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company targeted for extortionate takeover and looting by a group led by Nicodemo S. Scarfo. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Parisi and 12 others – including his cousin, Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. John Parisi admitted that he joined the conspiracy in April 2007.
Parisi managed a family trust and a limited liability company on behalf of Scarfo as part of the scheme to defraud FPFG. Parisi said Scarfo directed him in the use of various bank accounts through which Scarfo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. As alleged in the indictment, the money involved proceeds of the fraud that Scarfo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Learned Associates, and one controlled by Pelullo. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
Parisi admitted that beginning in February 2008 he assisted Scarfo and his then-fiancée, Lisa Marie Scarfo, obtain a mortgage for a $715,000 house in Egg Harbor Township, New Jersey, that the Scarfos intended to purchase. Lisa Marie Scarfo pleaded guilty on Sept. 17, 2013, to a conspiracy to make a false mortgage loan application in connection with the purchase of the Egg Harbor Township house.
In addition to the prison term, Judge Kugler sentenced Parisi to two years of supervised release and ordered him to pay $14 million in restitution.
Scarfo, Pelullo, and William and John Maxwell were convicted in convicted in July 2014 of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before Judge Kugler. Scarfo and Pelullo were previously sentenced to 30 years in prison. William and John Maxwell were previously sentenced to 20 and 10 years in prison, respectively.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. They also thanked the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their roles in the case.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office Camden Office.
Defense counsel: Lisa Evans Lewis Esq., Camden
Amarillo Men Sentenced to Lengthy Federal Prison Sentences for Trafficking Large Quantity of Liquid MethamphetamineRead the Press Release
AMARILLO, Texas — Two Amarillo, Texas, men, who admitted trafficking a large quantity of liquid methamphetamine, have been sentenced by U.S. District Judge Mary Lou Robinson to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Damian Erik Alcala, 37, was sentenced to 324 months in federal prison to run consecutively to the 37-month sentence he received for his supervised release revocation. In mid- December 2105, Richard Madrigal, 42, was sentenced to 262 months in federal prison to run consecutively to the 12-month sentence he received for his supervised release revocation. Each defendant pleaded guilty to one count of conspiracy to possess with intent to distribute and distribute 500 grams or more of methamphetamine. Both have been in federal custody since their arrest last summer on a related federal criminal complaint.
According to documents filed in the case, law enforcement learned that a green Chevy Blazer, with Chihuahua registration, was to arrive in Amarillo from El Paso, Texas, and that the vehicle was transporting a methamphetamine solution concealed in its fuel tank. On July 17, 2015, law enforcement observed Alcala, driving a white Toyota Camry, and Madrigal, driving a green Chevy Blazer, arrive at a residence on Houston Street in Amarillo. Shortly thereafter, both left the residence in the white Camry. Several minutes later, they returned to the residence and Madrigal left in the white Camry. When officers with the Amarillo Police Department arrived to secure the residence, Alcala fled on foot. Officers with the Amarillo Police Department apprehended Madrigal and brought him back to the residence.
During the subsequent execution of a search warrant at the residence, law enforcement found three Tupperware containers containing crystal methamphetamine in the kitchen. Two semi-automatic pistols were also found in the residence.
When law enforcement searched the green Chevy Blazer that was parked in the garage, they removed its fuel tank and extracted approximately 84 pounds of liquid methamphetamine from the fuel tank.
The Drug Enforcement Administration, the Amarillo Police Department, the Federal Bureau of Investigation and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
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Albuquerque Resident Pleads Guilty to Federal Charges Arising Out of January 2015 Pharmacy RobberyRead the Press Release
ALBUQUERQUE – Joseph Montano, 23, of Albuquerque, N.M., pleaded guilty today in federal court to felony charges arising out of a pharmacy robbery in Jan. 2015. Under the terms of his plea agreement, Montano will be sentenced within the range of 80 to 120 months in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Chief Gorden Eden, Jr., of the Albuquerque Police Department, Chief Pete N. Kassetas of the New Mexico State Police.
Montano and his co-defendant Victor Hurtado, 21, also of Albuquerque, were charged in April 2015 with crimes arising from the Jan. 6, 2015, armed robbery of the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque. The indictment alleged that the two men (1) violated the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) brandished a firearm during a crime of violence; (3) violated the Controlled Substance Registrant Act by robbery involving controlled substance; (4) violated the Safe Doses Act by theft of medical products; and (5) possessed Oxycodone with intent to distribute.
During today’s change of plea hearing, Montano plead guilty to violating the Hobbs Act by interfering with interstate commerce by robbery and violence, violating the Controlled Substance Registrant Act by robbery involving controlled substances, violating the Safe Doses Act by theft of medical products and possession of Oxycodone with intent to distribute. Montano admitted that on Jan. 6, 2015, he acted as a lookout while his accomplice jumped over the pharmacy counter at the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque, pointed a firearm at pharmacy employees and bagged bottles of Oxycodone pills. Montano further admitted that he and his accomplice intended to distribute the controlled substances to other individuals and that the replacement value to Smith’s Pharmacy for the stolen pills in approximately $1,831.00.
Montano remains in custody pending a sentencing hearing which has yet to be scheduled.
On July 1, 2015, co-defendant Hurtado pled guilty to robbing a commercial business engaged in interstate commerce; brandishing a firearm during a crime of violence, and possession of Oxycodone with intent to distribute. Hurtado also pled guilty to possession of methamphetamine with intent to distribute, and admitted that he was arrested on state charges on March 5, 2015, after the New Mexico State Police found 54 grams of heroin and 133 grams of methamphetamine in the vehicle Hurtado was driving. Hurtado was sentenced on Dec. 11, 2015, to 141 months in federal prison followed by three years of supervised release. Hurtado was also ordered to pay restitution to the pharmacy.
This case was investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque, the Albuquerque Police Department and the New Mexico State Police, with assistance from the 2nd Judicial District Attorney’s Office in Bernalillo County. The case is being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
These cases are being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Albuquerque Man Sentenced to Five Years for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Antonio Escobedo, 41, a resident of Albuquerque, N.M., from Calera, Zacatecas, Mexico, was sentenced today in federal court to 60 months in prison for violating the federal firearms laws. Escobedo will be deported following his term of incarceration.
Escobedo was arrested in Feb. 2012, and charged by criminal complaint with possession of methamphetamine with intent to distribute on Feb. 2, 2012, in Bernalillo County, N.M. According to the complaint, on Feb. 2, 2012, law enforcement officers executed a search warrant on Escobedo’s residence and vehicle and seized approximately 29 grams of methamphetamine, three firearms and ammunition, $12,541.00 in cash and drug paraphernalia.
Escobedo was indicted on March 1, 2012, and charged with possession of methamphetamine with intent to distribute. The indictment was subsequently superseded on June 26, 2013, charging Escobedo with possession of methamphetamine with intent to distribute, being a felon in possession of firearms and possession of firearms in furtherance of a drug trafficking crime. Escobedo was prohibited from possessing firearms or ammunition because of his previous felony convictions.
On July 1, 2014, Escobedo pled guilty to possessing a firearm in furtherance of a drug trafficking crime. Escobedo admitted that on Feb. 2, 2012, he possessed methamphetamine inside of a shed on his property and inside of his vehicle, $12,541.00 in a bedroom closet, scales for weighing illegal drugs and wireless telephones for communicating about methamphetamine trafficking. He further admitted that the methamphetamine was intended for distribution to others and not for his personal use. Escobedo also admitted that he possessed three firearms in furtherance of his drug trafficking activities and that he was prepared to use the firearms to protect the controlled substances and proceeds of his drug trafficking activities.
This case was investigated by the Albuquerque offices of the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean J. Sullivan prosecuted the case.
Aiken Doctor Among Multiple Defendants Indicted for Illegal Distribution of OxycodoneRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today an indictment charging multiple defendants, including Dr. Mackie James Walker, Jr., a podiatrist of Aiken, South Carolina, with their roles in a conspiracy to illegally distribute oxycodone.
The indictment alleges that the defendants conspired to possess with intent to distribute, and to distribute, oxycodone, a Schedule II controlled substance, from January 2013 and continuing until the date of the indictment, in violation of Title 21, United States Code, Section 846. Walker is also charged with two counts of distributing oxycodone without a legitimate medical purpose, in violation of Title 21, United States Code, Section 841(a)(1), and one count of using a telephone to facilitate the commission of a felony under the Controlled Substances Act, in violation of Title 21, United States Code, Section 843(b). The maximum penalty Walker could receive is twenty years’ imprisonment for the drug counts and four years’ imprisonment for the count charging use of a communication device to facilitate the commission of a felony under the Controlled Substances Act.
Mr. Nettles states that the indictment follows two other recent federal indictments charging multiple individuals in and around Aiken County with the illegal distribution of oxycodone, and it represents the office’s commitment to address the illegal distribution of prescription pills.
The indictment is the result of an investigation conducted by the Drug Enforcement Administration. Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.
Mr. Nettles states that the charges in this Indictment are merely accusations and the defendants are presumed innocent until and unless proven guilty.
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18 January 2016
U.S. Attorney's Office collected nearly $41 million in 2015Read the Press Release
U.S. Attorney Steven M. Dettelbach announced that the Northern District of Ohio collected more than $40.7 million in Fiscal Year 2015 from criminal and civil actions.
Approximately $33.6 million was collected in criminal actions and about $7.1 million in civil actions.
Additionally, the office took in $12.6 million in civil and criminal forfeitures.
The office’s total overall budget for this fiscal year was about $16 million.
“Once again our office brought in millions of dollars and doubled our annual budget,” Dettelbach said. “In addition to thwarting terrorism, protecting the environment, enforcing civil rights laws, rooting out corruption and getting guns off the streets, this office protects the fiscal interests of the taxpayers and the Treasury.”
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
The money is used to compensate crime victims, is distributed to state and local law enforcement partners who participate in investigations and is returned to the general treasury.
Among the largest collections this year:
United States v. Robinson Health System Inc.: The Ravenna-based nonprofit paid $10 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians.
The settlement involved Robinson’s financial relationships with a number of referring physicians that allegedly violated the Anti-Kickback Statute and the Stark Statute, both of which restrict the financial relationships that hospitals may have with doctors who refer patients to them. These relationships included management agreements that Robinson had with two physicians groups. These physicians allegedly failed to provide sufficient bona fide management services to have justified the payments that they received. Robinson disclosed these issues to the government. The company operated a number of health care facilities in Portage County, including Robinson Memorial Hospital.
United States v. Thomas Shumay: Shumay paid $400,000 in restitution last year. He was previously found guilty of mail fraud and making false statements in relation to his work as president of All Tools. In that capacity, he was responsible for ensuring that landing gear parts produced and sold by All Tools for use on military aircraft were developed and tested in compliance with military contract specifications.
United States v. Scott A. Fisher: Fischer, of Marion, Ohio, was previously found guilty of tax evasion for evading nearly $900,000 in federal income tax between 2006 and n2010. Fisher paid the unpaid taxes leading up to plea. He was sentenced to one year in prison and fined $250,000. That fine was paid last year.
The Justice Department collected approximately $23.1 billion in civil and criminal actions across the country in the 2015 fiscal year.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
A complete breakdown of collections in the Northern District of Ohio over past decade is as follows:
2014: $356.7 million
2013: $23.9 million
2012: $79.7 million
2011: $48.6 million
2010: $42 million
2009: $17.7 million
2008: $36.7 million
2007: $63.5 million
2006: $80 million
2005: $51.4 million
2004: $22.3 million
17 January 2016
List of Individuals Receiving Pardons/CommutationsRead the Press Release
Below is a list of the seven defendants who either received pardons or commutations.
- Khosrow Afghahi – Southern District of Texas (Pardon)
Offenses: One count of conspiracy to violate the Iranian embargo and the Export Administration Regulations (EAR), one count of violating the Iranian embargo, one count of conspiracy to commit money laundering and one count of money laundering.
- Tooraj Faridi – Southern District of Texas (Pardon)
Offenses: One count of conspiracy to violate the Iranian embargo and the EAR, two counts of violating the Iranian embargo and one count of conspiracy to commit money laundering.
- Bahram Mechanic – Southern District of Texas (Pardon)
Offenses: One count of conspiracy to violate the Iranian embargo and the EAR, six counts of violating the Iranian embargo and the EAR, five counts of violating the Iranian embargo, one count of conspiracy to commit money laundering, eight counts money laundering and one count of failure to file Reports of Foreign Bank and Financial Accounts (FBARs).
- Nima Golestaneh – District of Vermont (Pardon)
Offenses: Four counts of wire fraud, one count each of conspiracy to access a computer without authorization and accessing a computer without authorization.
- Nader Modanlo, aka Modanlu and Modanlou – District of Maryland (Commutation)
Offenses: One count of conspiracy to violate the Iranian embargo, two counts of violating the Iranian embargo, one count each of money laundering and obstruction of bankruptcy proceedings.
- Arash Ghahreman – Southern District of California (Commutation)
Offenses: One count of conspiracy to violate the Iranian embargo, one count of conspiracy to smuggle goods from the United States, one count of attempting to violate the Iranian embargo, one count of smuggling, one count of conspiracy to money launder and two counts of money laundering.
- Ali Saboonchi – District of Maryland (Commutation)
Offenses: One count of conspiracy to violate the Iranian embargo and seven counts of violating the Iranian embargo.
16 January 2016
Woodbridge Men Charged with Terrorism Offenses Related to Attempting to Travel to Syria to Join ISILRead the Press Release
ALEXANDRIA, Va. – Joseph Hassan Farrokh, 28, and Mahmoud Amin Mohamed Elhassan, 25, both of Woodbridge, were charged today for criminal activity relating to Farrokh’s attempt to travel to Syria to join the Islamic State of Iraq and the Levant (ISIL).
Farrokh was arrested yesterday afternoon at the Richmond International Airport as he attempted to board a flight to Chicago, where he intended to board a flight to Amman, Jordan, with an ultimate destination of Syria. Elhassan was arrested yesterday evening in Woodbridge after returning from driving Farrokh to Richmond and being interviewed by FBI agents.
Farrokh, who is a U.S. citizen originally from Pennsylvania, has been charged with attempting to provide material support and resources to a designated foreign terrorist organization. Elhassan, who is a legal permanent U.S. resident originally from Sudan, has been charged with aiding and abetting Farrokh’s attempt to provide material support and resources to a designated foreign terrorist organization.
According to the criminal complaints, since at least Nov. 20, 2015, Farrokh has been engaged in efforts to leave the United States and join ISIL in Syria. Farrokh purchased an airline ticket on Dec. 21, 2015, for flights departing yesterday from Richmond with an ultimate arrival destination of Jordan, and would then travel to Syria.
According to the criminal complaints, Elhassan introduced Farrokh to a person who Elhassan believed maintained connections to individuals engaged in jihad overseas. Elhassan also knew of Farrokh’s plans to travel to Syria to join ISIL, and Elhassan acknowledged to others that Farrokh was falsely telling his family that he intended to travel to Saudi Arabia to study.
According to the criminal complaints, Elhassan picked up Farrokh yesterday morning and drove him to Richmond to a location approximately one mile from the airport. Farrokh then took a cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate. After driving Farrokh to Richmond, Elhassan returned to Woodbridge yesterday afternoon and voluntarily consented to an interview by FBI agents. Elhassan acknowledged to the interviewing agents several times that he knew it was illegal to knowingly lie to federal agents, then proceeded to make a number of false statements in response to the agents’ questions. For example, when asked when he had last seen Farrokh, Elhassan told the agents it had been earlier in the day in Woodbridge. Elhassan also stated that Farrokh was going to the Dulles International Airport to fly to California to attend a funeral and would be gone for two weeks.
Farrokh and Elhassan each face a maximum penalty of 20 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.
The initial appearance for both men is scheduled for Jan. 19, 2016, in front of U.S. Magistrate Judge Theresa C. Buchanan at the federal courthouse in Alexandria.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg and Dennis Fitzpatrick, along with Trial Attorney D. Andrew Sigler of the Justice Department’s National Security Division’s Counterterrorism Section. This case is being investigated by the FBI’s Joint Terrorism Task Force.
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. 1:16-cr-24 (Farrokh) and 1:16-cr-25 (Elhassan).
The criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Two Virginia Men Charged with Terrorism Offenses Related to Attempted Travel to Syria to Join ISILRead the Press Release
Joseph Hassan Farrokh, 28, and Mahmoud Amin Mohamed Elhassan, 25, both of Woodbridge, Virginia, were charged today for criminal activity relating to Farrokh’s attempt to travel to Syria to join the Islamic State of Iraq and the Levant (ISIL).
The charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Farrokh was arrested yesterday afternoon at the Richmond, Virginia, International Airport as he attempted to board a flight to Chicago, where he intended to board a flight to Amman, Jordan, with an ultimate destination of Syria. Elhassan was arrested yesterday evening in Woodbridge after returning from driving Farrokh to Richmond and being interviewed by FBI agents.
Farrokh, who is a U.S. citizen originally from Pennsylvania, has been charged with attempting to provide material support and resources to ISIL, a designated foreign terrorist organization. Elhassan, who is a legal permanent U.S. resident originally from Sudan, has been charged with aiding and abetting Farrokh’s attempt to provide material support and resources to a designated foreign terrorist organization.
According to the criminal complaints, since at least Nov. 20, 2015, Farrokh has been engaged in efforts to leave the United States and join ISIL in Syria. Farrokh met several times with confidential human sources in attempts to work out the details of how and when he could travel to Syria to join ISIL. Farrokh purchased airline tickets on Dec. 21, 2015, for flights departing yesterday from Richmond with an ultimate arrival destination of Jordan. He planned to thereafter travel to Syria to join ISIL. According to the criminal complaints, Elhassan introduced Farrokh to a person who Elhassan believed maintained connections to individuals engaged in jihad overseas, Elhassan knew of Farrokh’s plans to travel to Syria to join ISIL and he acknowledged to others that Farrokh was falsely telling his family that he intended to travel to Saudi Arabia to study.
According to the criminal complaints, Elhassan picked up Farrokh yesterday morning and drove him to Richmond, to a location approximately one mile from the airport. Farrokh subsequently took a cab to the airport, checked in for his flight, cleared security and was arrested. After driving Farrokh to Richmond, Elhassan returned to Woodbridge yesterday afternoon and voluntarily consented to an interview by FBI agents. Elhassan acknowledged to the interviewing agents several times that he knew it was illegal to knowingly lie to federal agents, then proceeded to make a number of false statements in response to the agents’ questions, according to the criminal complaints.
The initial appearance for both defendants is scheduled for Jan. 19, 2016, at the federal courthouse in Alexandria, Virginia.
If convicted, Farrokh and Elhassan each face a maximum penalty of 20 years in prison. 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.
The case is being investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg and Dennis Fitzpatrick of the Eastern District of Virginia, along with Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
Farrokh Complaint
Elhassan Complaint
Columbus Gang Members Plead Guilty to Murder, Rico ChargesRead the Press Release
COLUMBUS, Ohio – Three Columbus men pleaded guilty in connection to a racketeering case involving the organized criminal enterprise known as the Short North Posse.
Allen L. Wright, 30, pleaded guilty to one count of racketeering conspiracy and two counts of murder in aid of racketeering.
Tysin L. Gordon, 30, and Freddie K. Johnson, 29, each pleaded guilty to one count of racketeering conspiracy.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs, announced the pleas entered into yesterday before U.S. District Judge Algenon L. Marbley.
The three were charged by a superseding indictment in October 2014. A total of 20 individuals were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons trafficking, extortion and robbery.
Racketeering conspiracy is a crime punishable by up to 20 years in prison. Murder in aid of racketeering carries a potential maximum sentence of life in prison or the death penalty.
U.S. Attorney Stewart commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
15 January 2016
Williamsport Men Indicted for Distribution of Heroin and CocaineRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a grand jury in Williamsport returned a five-count indictment yesterday charging two Williamsport men with conspiracy to distribute heroin and cocaine, distribution of cocaine, and possession with intent to distribute heroin and cocaine.
According to United States Attorney Peter Smith, the indictment alleges, in or around June 2014, Rasheem Jarbar Ruley, age 24, and Antoine Paris Davis, age 38, conspired to distribute heroin and cocaine to drug users and sellers in Williamsport and distributed and possessed those substances with the intent to distribute on four separate occasions. The indictment alleges that Ruley and Davis stored heroin and cocaine at their residence on Tinsman Avenue in Williamsport, including a large bag containing over 100 grams of heroin (136 small bags of heroin packaged for sale), 16 bags of cocaine, and digital scales.
This matter was investigated by the Pennsylvania State Police, the Williamsport Bureau of Police, the Lycoming County District Attorney’s Office, and the Federal Bureau of Investigation. This case is being prosecuted by Assistant U.S. Attorney George Rocktashel.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Williamsport Man Indicted for Heroin TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Williamsport man was indicted yesterday by a federal grand jury for heroin trafficking and the illegal possession of a firearm.
According to United States Attorney Peter Smith, the grand jury alleges that Braheem Johnson, age 27, engaged in multiple deliveries of heroin in Williamsport in 2015. A search of Johnson’s apartment in May 2015 uncovered a supply of over 1000 packets of heroin bundled for distribution to others. Also recovered was an unlicensed .22 caliber handgun which Johnson was prohibited from possessing under Federal law.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Williamsport Bureau of Police, and the Lycoming County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Geoffrey MacArthur.
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 was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations 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 up to life imprisonment, a term of three years supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Washington County Man Convicted of Defrauding HospitalRead the Press Release
PANAMA CITY, FLORIDA – Yesterday afternoon, a federal jury convicted Eon L. Menckeberg, 55, of Chipley, Florida, of six counts of wire fraud for falsely representing to a hospital that he possessed health insurance to obtain specialized medical treatment services for a broken ankle. The verdict was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2012, Menckeberg visited the Jackson County Hospital emergency room after sustaining a compound fracture to his ankle. He was treated and received surgery for his injury. Subsequently, in September 2012, Menckeberg went to the Wound Trauma Institute at the Northwest Florida Community Hospital to obtain elective hyperbaric-oxygen treatment to aid in the healing of the wound. To pay for the treatments, he falsely told hospital staff that he possessed health insurance through Lloyd’s of London and was president of the Prince Trust. Menckeberg submitted false documents purporting to confirm insurance coverage and authorizing the elective treatments at the hospital. Menckeberg received numerous hyperbaric-oxygen treatments during the next several months, and the treatments and physician costs at the Northwest Florida Community Hospital totaled more than $262,000. Menckeberg was assisted in the fraud by a woman who posed as a Lloyd’s of London broker who told the hospital that Menckeberg had sufficient insurance to cover his medical treatment. The monies owed to the hospital were never paid by Menckeberg.
While the jury was deliberating, the defendant was taken into federal custody pending his sentencing for violating the terms of his pre-trial release for being illegally present in the U.S. At a hearing, it was revealed that Menckeberg was not a United States citizen, but actually a citizen of Suriname. Nineteen years earlier, the Immigration and Naturalization Service denied Menckeberg’s petition to become a permanent resident alien and ordered him to voluntarily depart from the United States by December 26, 1986. Menckeberg failed to do so. Menckeberg subsequently obtained a Florida driver’s license and claimed to be a U.S. citizen born in Florida. Menckeberg has been living and posing as a U.S citizen for the past 19 years.
Menckeberg faces a maximum of 20 years in prison on each count. The sentencing hearing is scheduled for April 14, 2016, at 9:00 a.m. at the United States Courthouse, in Panama City, Florida.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Financial Services Division of Insurance Fraud. It was prosecuted by Assistant United States Attorney Stephen M. Kunz.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Universal Aryan Brotherhood Associate Sentenced for Violence Committed in Aid of RacketeeringRead the Press Release
TULSA, Okla.– An associate of the Universal Aryan Brotherhood (UAB) prison gang was sentenced to 57 months in prison today in federal court for violence committed in aid of racketeering, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Robert Allen Paul Bryan, 41, of Tulsa, Oklahoma, pleaded guilty on June 4, 2015, before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma.
In connection with his guilty plea, Bryan acknowledged his association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma. Bryan admitted that in May 2013, he and other UAB members, operating on orders from the UAB’s governing body, restrained a former UAB member while other gang members used a heated knife to burn off the victim’s UAB neck tattoo.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Tulsa Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Internal Revenue Service-Criminal Investigations Division; the FBI; the Tulsa County Sheriff’s Office and the Oklahoma Department of Corrections investigated the case. Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma are prosecuting the case.
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Universal Aryan Brotherhood Associate Sentenced for Violence Committed in Aid of RacketeeringRead the Press Release
An associate of the Universal Aryan Brotherhood (UAB) prison gang was sentenced to 57 months in prison today in federal court for violence committed in aid of racketeering, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Robert Allen Paul Bryan, 41, of Tulsa, Oklahoma, pleaded guilty on June 4, 2015, before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma.
In connection with his guilty plea, Bryan acknowledged his association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma. Bryan admitted that in May 2013, he and other UAB members, operating on orders from the UAB’s governing body, restrained a former UAB member while other gang members used a heated knife to burn off the victim’s UAB neck tattoo.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Tulsa Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Internal Revenue Service-Criminal Investigations Division; the FBI; the Tulsa County Sheriff’s Office and the Oklahoma Department of Corrections investigated the case. Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma are prosecuting the case.
Two Vallejo Residents Plead Guilty to Multimillion Dollar Mortgage and Foreclosure Rescue Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Zalathiel Aguila, 42, and Omar Anabo, 53, both of Vallejo, pleaded guilty today to conspiracy to make false statements on loan applications, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 2004 and May 2007, Aguila and Anabo operated Vallejo‑based Capital Access LLC, an entity targeting homeowners facing foreclosure. The defendants’ “Keep Your Home” program purported to be a temporary rescue plan whereby “qualified investors” took over the mortgages while the homeowners paid rent and worked on rebuilding their credit. The defendants convinced homeowners to sign over title to their homes, which were then sold to straw buyers. The straw buyers obtained loans under fraudulent pretenses by claiming on loan applications that, for example, they intended to occupy the homes as primary residences and that no part of the down payment for the purchase was borrowed. In fact, Capital Access provided the down payment amounts, and the straw buyers never intended to live in the properties. The defendants stripped the equity from the homes and used it to pay the operating expenses of Capital Access, additional fraudulent home purchases, monthly housing payments on the homes for a limited period of time, and personal expenses.
Many of the distressed homeowners were never told that they were permanently signing over title to their homes to Capital Access. Victim homeowners suffered substantial financial hardship; they lost their homes and were forced to move.
In all, the scheme caused the fraudulent sale of at least $27 million in home properties, involving at least 69 properties across California, and at least $23.99 million in fraudulently obtained property loans. Lenders lost at least $10.47 million as a result.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
Aguila and Anabo are scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on April 1, 2016. Both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Men Arrested for Conspiring to Illegally Export TurtlesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC COTTRELL, age 44, of Minden, Louisiana, and RAYMOND CHIU, age 72, of Foster City, California, appeared today before United States Magistrate Judge Karen Roby after being arrested on a criminal complaint which charged them with violations of the Lacey Act (16 U.S.C. § 3372), smuggling goods from the United States (18 U.S.C. § 554), and conspiracy (18 U.S.C. § 371).
According to court records, from March 25, 2015 through the present, CHIU and COTTRELL conspired to purchase and smuggle unpermitted turtles, including Diamondback Terrapins.
If convicted, the maximum penalty as to the Lacey Act and conspiracy charges are five years imprisonment, a $250,000 fine, and a three year term of supervised release. The maximum penalties as to the smuggling charge is ten years imprisonment, a $250,000 fine, and a three year term of supervised release. A detention hearing is scheduled for next week.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.
Two Members of Al-Shabaab Sentenced for Conspiring to Provide Material Support to the Terrorist OrganizationRead the Press Release
Ali Yasin Ahmed, aka Ismail, 31, and Mohamed Yusuf, aka Abu Zaid, Hudeyfa and Mohammed Abdulkadir, 33, were each sentenced to 11 years in prison by U.S. District Judge John Gleeson of the Eastern District of New York for conspiring to provide material support to al-Shabaab, a designated foreign terrorist organization.
The sentences were 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 Diego Rodriguez of the FBI’s New York Field Office.
As stated in court today and according to court documents, between approximately December 2008 and August 2012, the defendants served as members of al-Shabaab in Somalia, where they supported al-Shabaab and its extremist agenda. In early August 2012, the defendants were apprehended in East Africa by local authorities while on their way to Yemen. On Nov. 14, 2012, the FBI took custody of the defendants and brought them to the Eastern District of New York for prosecution. They pleaded guilty on May 12, 2015.
“Ahmed and Yusuf travelled to Somalia to fight on behalf al-Shabaab as part of the terrorist organization's cadre of foreign fighters,” said Assistant Attorney General Carlin. “The National Security Division remains committed to identifying, disrupting and holding accountable all who seek to provide material support to and fight on behalf of designated foreign terrorist organizations.”
“These defendants left their adopted European homes to support al-Shabaab, a violent terrorist organization that has demonstrated its capabilities and motives in numerous terrorist attacks overseas and has publicly called for attacks against the United States,” said U.S. Attorney Capers. “Today’s significant sentences reflect the seriousness of the defendants’ criminal conduct and will serve as a strong deterrent to others considering the path to violence.”
“The guilty plea and sentencing of these men for providing material support to al-Shabaab, demonstrates the U.S. government’s commitment and leadership in prosecuting persons whose intention is to violently assault societies different than their own,” said Assistant Director in Charge Rodriguez. “We remain steadfast in identifying and stopping such attacks. We will continue to work within the framework of the U.S. justice system to hold terrorists accountable for their malicious intentions and criminal actions. Special thanks to all our law enforcement and intelligence community partners on the JTTF, whose joint efforts keep us safe. We are also grateful for the international cooperation we received to bring these terrorism subjects to justice.”
The defendants, both naturalized Swedish citizens, traveled to Somalia intending to wage violent jihad on the U.N.-sanctioned African Union Mission in Somalia (AMISOM) and Somali government forces that were attempting to bring stability to that war-torn country. Once in Somalia, the defendants participated in numerous attacks on government forces. Yusuf is featured in an al-Shabaab propaganda video in which he encourages young men to travel to Somalia and join al-Shabaab and threatened a cartoonist who had depicted the prophet Mohammad. A third defendant, Madhi Hashi, is scheduled to be sentenced on Jan. 29, 2016.
Assistant Attorney General Carlin joined U.S. Attorney Capers in thanking the federal, state and local law enforcement agencies who participate in the FBI’s Joint Terrorism Task Force in New York.
The prosecution is being handled by Assistant U.S. Attorneys Shreve Ariail, Seth D. DuCharme and Richard M. Tucker of the Eastern District of New York, along with Trial Attorney Annamartine Salick of the National Security Division’s Counterterrorism Section. Trial Attorney Shanna Batten of the Department of Justice’s Office of International Affairs and Dan Stigall of the National Security Division also provided invaluable assistance.
Two Members of Al-Shabaab Sentenced to 11 Years for Conspiring to Provide Material Support to the Terrorist OrganizationRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Ali Yasin Ahmed and Mohamed Yusuf were sentenced to 11 years in prison by United States District Judge John Gleeson for conspiring to provide material support to al-Shabaab, a designated foreign terrorist organization. The defendants, both naturalized Swedish citizens, traveled to Somalia intending to wage violent jihad on the U.N.-sanctioned AMISOM and Somali government forces that were attempting to bring stability to that war-torn country. Once in Somalia, the defendants participated in numerous attacks on government forces, and Yusuf appeared in an al-Shabaab recruiting video aimed at inducing young Muslim men in Western countries to leave their homes and join the terrorist organization.
The sentences were 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 Diego Rodriguez, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office.
As stated in court today and according to court documents, between approximately December 2008 and August 2012, the defendants served as members of al-Shabaab in Somalia, where they agreed with others to support al-Shabaab and its extremist agenda. In early August 2012, the defendants were apprehended in East Africa by local authorities while on their way to Yemen. On November 14, 2012, the Federal Bureau of Investigation took custody of the defendants and brought them to the Eastern District of New York for prosecution. They pleaded guilty on May 12, 2015.
“These defendants left their adopted European homes to support al-Shabaab, a violent terrorist organization that has demonstrated its capabilities and motives in numerous terrorist attacks overseas and has publicly called for attacks against the United States,” stated U.S. Attorney Capers. “Today’s significant sentences reflect the seriousness of the defendants’ criminal conduct and will serve as a strong deterrent to others considering the path to violence.”
“Ahmed and Yusuf travelled to Somalia to fight on behalf al Shabaab as part of the terrorist organization's cadre of foreign fighters,” said Assistant Attorney General Carlin. “The National Security Division remains committed to identifying, disrupting, and holding accountable all who seek to provide material support to and fight on behalf of designated foreign terrorist organizations.”
FBI Assistant Director-in-Charge Rodriguez stated, “The guilty pleas and sentencing of these men for providing material support to al-Shabaab demonstrates the U.S. government’s commitment and leadership in prosecuting persons whose intention is to violently assault societies different than their own. We remain steadfast in identifying and stopping such attacks. We will continue to work within the framework of the U.S. justice system to hold terrorists accountable for their malicious intentions and criminal actions. Special thanks to all our law enforcement and intelligence community partners on the JTTF, whose joint efforts keep us safe. We are also grateful for the international cooperation we received to bring these terrorism subjects to justice.”
During the time of the charged conspiracy (and thereafter), al-Shabaab successfully recruited individuals from around the world, such as the defendants, to come to Somalia and join the organization. These individuals, known within al-Shabaab as “foreign fighters,” lived, trained, and often fought alongside other native Somali fighters. The foreign fighters were especially valuable to al-Shabaab for several reasons. For example, al-Shabaab frequently made Western foreign fighters the face of its fund-raising and propaganda efforts as part of a broader strategy of emphasizing that the conflict in Somalia was part of a global jihad aimed at creating an Islamic caliphate. Indeed, one of the defendants, Yusuf, is featured in an al-Shabaab propaganda video in which he encouraged young men to travel to Somalia and join al-Shabaab and threatened a cartoonist who had depicted the prophet Mohammad. In addition, Yusuf and Ahmed fought in battles in Somalia against African Union forces. A third defendant, Madhi Hashi, is scheduled to be sentenced on January 29, 2016.
Assistant Attorney General Carlin joined U.S. Attorney Capers in thanking the federal, state, and local law enforcement agencies who participate in the FBI’s Joint Terrorism Task Force in New York.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Shreve Ariail, Seth D. DuCharme, and Richard M. Tucker, along with Trial Attorney Annamartine Salick of the Department of Justice’s Counterterrorism Section, are in charge of the prosecution. Trial Attorney Shanna Batten of the Department of Justice’s Office of International Affairs, and Dan Stigall, Counsel to the Assistant Attorney General for the National Security Division, also provided invaluable assistance.
The Defendants:
ALI YASIN AHMED, also known as “Ismail”
Age: 31
Nationality: SwedishMOHAMED YUSUF, also known as “Abu Zaid,” “Hudeyfa” and “Mohammed Abdulkadir”
Age: 33
Nationality: SwedishTwo Individuals Charged in Manhattan Federal Court with Extortion PlotRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced that BORIS KOTLYARSKY and BORIS NAYFELD were taken into custody yesterday for seeking payment from a victim who they claimed NAYFELD had been hired to murder. KOTLYARSKY and NAYFELD were presented this afternoon in Manhattan federal court before U.S. Magistrate Judge James C. Francis IV.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Boris Kotlyarsky and Boris Nayfeld conspired to extort $125,000 from a victim, claiming that Nayfeld had been hired to murder the victim. Thanks to the FBI and the NYPD, the victim is unharmed and the defendants are under arrest.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “This is yet another example of the cooperation by the FBI and NYPD through the Eurasian Organized Crime Task Force. We remain committed to keeping dangerous felons off our streets so the people of our communities can live in peace.”
NYPD Commissioner William J. Bratton said: “As alleged, this thuggish story seems like a yarn made only in Hollywood. But today, in New York, these two defendants find themselves charged in brazen extortion plot.”
According to the allegations in the Complaint[1] filed today in Manhattan federal court:
BORIS KOTLYARSKY informed the Victim that a Russian businessman (the “Businessman”) had approached BORIS NAYFELD with a contract to kill the Victim in exchange for a $100,000 payment. KOTLYARKSKY offered to broker a meeting between the Victim and NAYFELD. The Victim understood KOTLYARSKY to be offering the Victim an opportunity to intercede with NAYFELD before NAYFELD killed the Victim.
KOTLYARSKY then arranged a series of meetings between the Victim and BORIS NAYFELD. During these meetings, NAYFELD told the Victim, among other things, that the Businessman had transferred $50,000 to NAYFELD as partial payment on a contract for the Victim’s murder, and that it was good that KOTLYARSKY had intervened on the Victim’s behalf. NAYFELD told the Victim to pay him $125,000. Shortly after the Victim delivered NAYFELD a first payment by check, law enforcement agents arrested NAYFELD and, shortly thereafter, KOTLYARSKY.
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Mr. Bharara praised the outstanding work of the FBI and the NYPD for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Andrew M. Thomas is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Aspiring Rappers Charged with Operating Sex-Trafficking Ring in Chicago and SuburbsRead the Press Release
CHICAGO — Two members of a Chicago-area rap group have been charged with using violence and coercion to force females to engage in prostitution, federal authorities announced today.
SAMUEL NICHOLS and CHARLES FEARS are each charged with one count of engaging in sex trafficking by force, fraud and coercion, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. The pair worked together to recruit females, including minors, to engage in the commercial sex business, the complaint states.
In order to solicit customers, Nichols and Fears posted advertisements on the website Backpage.com that featured photographs of the females wearing lingerie and posing in sexual positions, according to the complaint. Nichols and Fears provided the females with cellular telephones and instructed them to answer calls and schedule meetings with Backpage.com customers, according to the complaint. The meetings primarily occurred in motels in various suburbs, including Naperville, Downers Grove, Schaumburg, Lansing, Harvey, Alsip and Joliet, according to the complaint.
After performing sex acts for money, the females gave the proceeds to Nichols and Fears, the complaint states.
Fears, 22, of Chicago, was arrested this morning. He made an initial court appearance today and is scheduled for a detention hearing at 11:00 am on January 22, 2016 before U.S. Magistrate Judge Kim.
Nichols, 30, formerly of Chicago, was arrested in Tennessee and ordered removed in custody to Chicago.
According to the complaint, Nichols and Fears carried firearms and would often hit, slap and choke the females who worked for them, including one incident in which Nichols beat a female so badly she had to be hospitalized. The pair also supplied the females with drugs and alcohol to help them participate in committing the sex acts, the complaint states.
According to the complaint, Nichols and Fears are members of a Chicago-area rap music group called “Hit Squad.” The group, not to be confused with the 1990s East Coast-based hip hop collective of the same name, posts videos of their music on websites such as YouTube.com, the complaint states.
The charge of sex trafficking by force, fraud or coercion is punishable by a mandatory minimum of 15 years in prison and a maximum of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charges were 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 and the Carol Stream Police Department, in coordination with the Cook County Human Trafficking Task Force.
The government is represented by Assistant U.S. Attorneys Sarah Streicker, Michelle Petersen and Libby Pozolo.
Complaint
Tioga County Physician and One Other Plead Guilty to Health Care Fraud ChargesRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dr. John Terry, age 65, of Wellsboro and Stephen Heffner, Jr., age 46, of Elkland, pleaded guilty today before Chief United States District Court Judge Christopher C. Conner in Williamsport.
In January 2016, a criminal information was filed in U.S. District Court in Scranton against Terry in connection with fraudulent prescriptions he wrote for Oxycodone, a Schedule II controlled substance.
According to U.S. Attorney Peter Smith, in April 2013, Dr. Terry caused Medicare to be billed for fraudulent prescriptions intended for Heffner knowing that Heffner was not his patient and that the Oxycodone was not actually intended for Heffner but for Dr. Terry’s patient, David Hatch, age 28, of Addison, New York. Medicare paid for the prescription received by Heffner but actually delivered to Hatch.
Dr. Terry also provided prescriptions for Oxycodone and other narcotics to another patient, Thomas Ray, age 52, of Wellsboro, who Terry should have known was not seeking the drugs for legitimate medical purposes. Medicaid paid for medically unnecessary prescriptions written for Ray.
Heffner and Hatch were charged with theft from the Medicare Program arising out of the same incident in separate criminal informations. The government also filed a plea agreement with Hatch. He is scheduled to appear before Chief Judge Conner in Harrisburg to enter a plea of guilty on February 11, 2016.
All three defendants were originally charged together with Ray, in an indictment by a federal grand jury in August 2014. Ray previously pled guilty before Chief Judge Conner and is scheduled to be sentenced on January 20, 2016.
Terry and Heffner are scheduled to be sentenced on April 4, 2016 in Williamsport.
The investigation was initiated in June 2013 by the Drug Enforcement Administration (DEA) drug diversion agents and the Department of Health and Human Services Office of Inspector General. During the execution of a federal search warrant at his office on July 8, 2013, Dr. Terry voluntarily agreed to surrender his medical license and his DEA registration.
The Pennsylvania State Police assisted in the investigation. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Criminal Informations 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 for health care fraud under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three People Charged with Sex Trafficking of MinorRead the Press Release
TRENTON, N.J. – Two people appeared in federal court today on charges they conspired to engage in sex trafficking of a minor and engaged in sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.
Aaron Gray, 29, a/k/a “AR,” Aja Easley, 22, both of Camden, appear this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court. Gray, Easley and a third defendant, Kenneth Mertz, 35, of Collingswood, who remains at large, are each charged in a three-count complaint with conspiracy to engage in sex trafficking of a minor and with sex trafficking of a minor. Gray is also charged with being a felon in possession of a firearm. Gray and Easley were ordered detained without bail.
According to the documents filed in this case:
On March 2, 2015, Easley allegedly communicated with the victim, a minor, using a social media website. She told the victim she was “worried about” the victim because of a previous assault by the victim’s boyfriend. She offered the victim money, clothing and shelter and met with the victim at the Camden Transportation Center. Easley allegedly told the victim about a dating website and said the victim could make money through the website by going on “dates.” Easley and the victim later met Gray and Mertz at a residence in Camden. Mertz then drove everyone to a motel in Cherry Hill.
At the motel, Gray and Easley allegedly attempted to convince the victim to engage in commercial sex acts and took suggestive photos of the victim, which were used as part of an advertisement on the website. Easley used her cellular telephone to communicate with multiple individuals who responded to the ad. Gray gave the victim instructions on what to do when the respondents arrived. The victim observed Gray in possession of a firearm and also observed a collapsible nightstick, which was later determined to belong to Mertz.
On March 3, 2015, at a motel in Mount Laurel, New Jersey, the victim engaged in sex acts with multiple individuals, who responded to the ad and paid money to the defendants. The defendants later told the victim they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the ad.
On the way to Atlantic City, the defendants allegedly agreed to let the victim stop at a residence in Gloucester City, New Jersey. The victim went inside and contacted the police, leading to the defendants’ arrest.
The count of conspiracy to engage in the sex trafficking of a minor carries a maximum penalty of life in prison. The substantive count of sex trafficking of a minor carries a statutory mandatory minimum of 10 years in prison and a statutory maximum of life in prison. The felon-in-possession count carries a maximum statutory penalty of 10 years in prison. Each count also carries a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and members of the Mount Laurel Police Department, under the direction of Police Chief Dennis Cribben, and the Gloucester City Police Department, under the direction of Acting Police Chief Michael Morell, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney J. Brendan Day in Trenton.
The charges and allegations summarized above are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three Methamphetamine Distributors Sentenced to Lengthy Federal Prison TermsRead the Press Release
FORT WORTH, Texas — Three methamphetamine distributors were sentenced today to lengthy federal prison sentences, announced U.S. Attorney John R. Parker of the Northern District of Texas.
U.S. District Judge John McBryde sentenced Angela Cupit, 41, to 360 months in federal prison, Shawn Travis Cathey, 44, to 360 months in federal prison, and Phillip Schenck, 41, to 480 months in federal prison. Each pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine.
Each of the six below-listed co-defendants also pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, and have sentencing dates scheduled for later this month. Each faces a statutory penalty of not less than 5 years and up to 40 years’ imprisonment in federal prison and a $5 million fine.
Eric Summers, 40, of Arlington, Texas
James Gatlin, 40, of Garland, Texas
David Godinez, 35, of Dallas, Texas
Ismael Rico, 32, of Dallas, Texas
Matthew Ryan Thompson, 44, of Mineral Wells, Texas
Celeste Monte Blair, 45, of Jacksonville, Florida
Bureau of Alcohol, Tobacco and Firearms, the Drug Enforcement Administration, and the Texas Department of Public Safety were in charge of the investigation.
Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Taney County Business Owner Pleads Guilty to Failure to Pay $490,000 in Payroll TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Taney County, Mo., business owner pleaded guilty in federal court today to failing to pay over more than $490,000 in taxes he withheld from his employees’ paychecks.
Carl Justin Gage, 41, of Ridgedale, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with the willful failure to pay over taxes.
Gage owned and operated multiple businesses in Taney County, including Eagle Construction and Excavating, LLC, Gage Excavating, LLC, Gage Family Entertainment, LLC, and Hollister Pizza Company, LLC. The total tax harm (including the employer’s matching portions) due from the four corporations is $490,227. Gage admitted he was aware of these requirements and willfully did not pay over the tax even though he withheld the taxes from the employees’ paychecks.
According to today’s plea agreement, Gage hired a bookkeeper to manage the finances of his businesses, including the payroll and preparation of payroll tax returns. The bookkeeper notified Gage of the payroll tax due and owning, but Gage willfully made the decision each quarter to not pay over the taxes withheld from his employees’ paychecks to the Internal Revenue Service.
Beginning in the fourth quarter of 2010 through the first quarter of 2012, Gage willfully failed to pay over $62,830 in taxes that had been withheld from his employees’ paychecks for Gage Family Entertainment.
Beginning in the third quarter of 2008 through the second quarter of 2010, Gage willfully failed to pay over $176,573 in taxes that had been withheld from his employees’ paychecks for Gage Excavating. On June 18, 2010, Gage began operating his excavating business under the new name, Eagle Construction and Excavating, LLC. Gage continued his scheme to willfully fail to pay over $48,821 in taxes that had been withheld from his employees’ paychecks from the third quarter of 2010 through the fourth quarter of 2011.
Beginning in the fourth quarter of 2008 through the third quarter of 2010, Gage willfully failed to pay over $25,113 in taxes that had been withheld from his employees’ paychecks for Hollister Pizza Company.
Under federal statutes, Gage is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. 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 Patrick Carney. It was investigated by the FDIC - Office of Inspector General and IRS-Criminal Investigation.
Spearfish Man Sentenced for Illegal Sexual ActsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Spearfish, South Dakota, man convicted of Travel with Intent to Engage in Illicit Sexual Contact was sentenced on January 11, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Richard Melanson, age 53, was sentenced to 360 months in custody, followed by a lifetime of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Melanson was indicted on April 8, 2014. He pleaded guilty on August 24, 2015.
The conviction stems from Melanson traveling to Guatemala between January 2008 and June 2010, for the purpose of engaging in illicit sexual acts with minors.
This case was investigated by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Melanson was immediately turned over to the custody of the U.S. Marshals Service.
Sentencings for January 11 - January 13, 2016Read the Press Release
Bradley Lee McGirr, 46, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 13, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. McGirr was arrested in Gillette, Wyoming. He received 300 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Michael Crain, 29, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl o January 13, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Crain was arrested in Wheatland, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
John Thomas Kady, 34, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 11, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Kady was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Schoharie Man Admits to Defrauding FEMARead the Press Release
LBANY, NEW YORK – Scott A. Clapper, Jr., age 31, of Schoharie, pleaded guilty today to 13 felony counts of making false statements and submitting false documents in connection with government benefits he received following Hurricane Irene.
The announcement was made by United States Attorney Richard S. Hartunian and Edward Nasiatka, Special Agent in Charge of the Department of Homeland Security’s Office of Inspector General, New York Field Office.
Clapper made false statements and submitted false documents to the Federal Emergency Management Agency (FEMA) following Hurricane Irene, which struck New York in August 2011 and made uninhabitable the Schoharie County home in which Clapper was living at the time.
Clapper told FEMA that his monthly rent at his new home, in Westerlo, was $1,200, when it was really $500. In an effort to document the $1,200 monthly rent, Clapper also submitted to FEMA fake lease agreements and rent receipts containing the forged signature of his landlord. Clapper received $16,426 from FEMA as a result of these falsehoods.
Clapper faces a maximum imprisonment term of 30 years and a maximum fine of $250,000 when he is sentenced on May 9, 2016 by Senior United States District Judge Thomas J. McAvoy. 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.
This case was investigated by the New York Field Office of the Department of Homeland Security’s Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael Barnett.
Rwandan Refugee Who Became Naturalized Citizen Is Convicted for Naturalization FraudRead the Press Release
A man who immigrated to the United States from Rwanda as a refugee in 1998, who was charged with having obtained his citizenship by fraud, was convicted by a jury today after a four-day trial in federal court in Cedar Rapids, Iowa.
Ken Ngombwa, 56, from Cedar Rapids, Iowa, was convicted of one count of unlawfully procuring or attempting to procure naturalization or citizenship; one count of procuring citizenship to which he was not entitled; one count of conspiracy to unlawfully procure citizenship; and one count of making a materially false statement to agents of the Department of Homeland Security.
The evidence at trial showed Ngombwa knowingly made several material false statements to procure entry into the United States as a refugee from Rwanda in 1998. Notably, Ngombwa falsely claimed to be the brother of Faustin Twagiramungu, a former Prime Minister of Rwanda, who lives in exile in Belgium.
The case was referred to the Department of Homeland Security in 2011 by the Prosecutor General of Rwanda.
Ngombwa was ordered detained without bond following return of the verdict today. A detention hearing before Chief United States District Court Judge Linda R. Reade has been set for Wednesday, January 20, 2016, at 1:30 p.m. in federal court in Cedar Rapids.
A sentencing date will be set after a presentence report is prepared.
If convicted on all counts, Ngombwa faces a possible maximum sentence of 30 years’ imprisonment, a $1,000,000 fine, $400 in special assessments, and 12 years of supervised release following any imprisonment. Ngombwa also faces loss of his citizenship in the United States.
The case is being prosecuted by Assistant United States Attorneys Richard L. Murphy and Ravi Narayan, and was investigated by Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00123.
Ronnie Lee McCall Convicted of Sexual Exploitation of MinorsRead the Press Release
GREENEVILLE, Tenn. – On Jan. 14, 2016, after a trial in U.S District Court, a jury convicted Ronnie Lee McCall, 60, of Limestone and Johnson City, Tenn., of four counts related to the sexual exploitation of three minor girls. The convictions include: permitting a child in his custody and control to travel in interstate commerce to produce child pornography; production of child pornography; production of child pornography by a parent; and using a means of interstate commerce to induce a minor to engage in illegal sexual activity (child rape under Tennessee law).
Sentencing has been set for June 6, 2016, before the Honorable J. Ronnie Greer, U.S District Court Judge. McCall faces a mandatory minimum term of 30 years in prison. His wife, Connie Stout McCall, 40, who was charged with the same offenses, pleaded guilty in February 2014 to production of child pornography by a parent. Both have been in federal custody since October 2013.
Nancy Stallard Harr, Acting U.S. Attorney for the Eastern District of Tennessee, noted, "This prosecution underscores the importance of our partnership with local and state authorities, social service agencies, and others in protecting children, who are some of the most vulnerable members of our community. While we cannot reclaim the children's lost childhoods or innocence, we will hold people who sexually victimize children accountable for their conduct."
The Tennessee Department of Child Services, Child Protective Services, Washington County Sheriff's Office, Johnson City Police Department, Washington County Child Advocacy Center, Youth Villages, a bail bondsman and Federal Bureau of Investigation worked together to ensure justice for the victims of Ronnie McCall. Assistant U.S. Attorneys Helen Smith and Corey Shipley represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Rochester Woman Pleads Guilty to Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Phally Suong, 35, of Rochester, NY, pleaded guilty to mail fraud before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that Suong worked as a customer service representative for Rochester Gas & Electric Company. The defendant used her position to access RG&E billing systems and alter customer information for inactive accounts awaiting refunds. Suong changed the information in the system from the actual customer’s name to the names of herself and family and friends. As a result, fraudulent refund checks were mailed to the defendant and other individuals totaling over $199,000.
Co-defendant Hoeub Chan received a number of fraudulent refund checks totaling over $72,000 and was sentenced to one year in prison.
Today’s plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled for April 15, 2016 before Judge Geraci.
Rochester Man Sentenced for Acting as A “Money Mule”Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charles Hanks, 47, of Rochester, NY, who was convicted of mail fraud, was sentenced to 12 months in prison by U.S. District Judge David G. Larimer. The defendant was also ordered to pay restitution of $105,100.00 to the victims of the fraud scheme.Assistant U.S. Attorney John J. Field, who handled the case, stated that Hanks worked with co-defendant Ricky Miller and a Jamaican group in a fraudulent sweepstakes telemarketing scheme that targeted elderly individuals. Victims were called on the telephone and told that they had won a sweepstakes prize or lottery. Victims were then asked to pay an upfront fee in order to release the purported winnings.
Hanks and Miller agreed to act as a point of contact in the United States to receive the money from the victims and then forward it to Jamaica after taking a substantial cut. Between January 2012 and September 2013, the victims sent approximately $300,000 to Hanks and Miller.
Ricky Miller was convicted and is awaiting sentencing.
The sentencing is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski, Boston Division.
Professional Cattle Thief Sentenced to 38 Months in PrisonRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jason Amidon, 28, of Coudersport, Pennsylvania, was sentenced yesterday in United States District Court in Brattleboro, following his guilty plea to one count of Wire Fraud. The charges stemmed from his scheme to defraud two Vermont and eleven other cattle ranchers of approximately $2.1 million by offering to purchase real cattle with counterfeit checks, and by offering to sell cattle that did not in fact exist and pocketing the proceeds. U.S. District Court Judge J. Garvan Murtha sentenced Amidon to 38 months in prison, three years of post-release supervision, and $144,450 in restitution.
The case began after Amidon successfully uttered a counterfeit check for $100,000 to a Lyndonville, Vermont farmer, in exchange for the purchase of 55 Belted Galloway female cattle and their calves, a heritage pedigree breed of cattle. Instead of delivering them to their new home at a co-operative farm in Minnesota as he represented, Amidon, with help from his father, delivered the cows to auction in Greencastle, Pennsylvania, where they were to be sold for beef. The balance of the agreed-upon purchase price was never delivered to the Vermont farmer.
Subsequently, law enforcement agents uncovered a series of frauds related to cattle. From in or about the summer of 2013 to January 2015, Amidon managed to defraud a number of cattle ranchers around the country. Specifically, by use of the internet and stock photography of cattle that were not his, Amidon swindled a cattle rancher in Arkansas into paying Amidon a $55,000 down payment for cattle that did not exist, as well as a cattle rancher in New Mexico into paying a $30,026 down payment for cattle that also did not exist. Those frauds resulted in two separate misdemeanor convictions in Pennsylvania.
Also, at the time of his January 2015 arrest, Amidon faced a third set of charges in Pennsylvania after convincing an Iowa farmer to wire him $135,000 as a down payment for cattle that did not exist. Amidon falsely represented himself to be a cattle broker for an owner who was dying of cancer and who needed to sell his entire herd at a discount; these charges ultimately became part of the federal indictment against him.
Additionally, in or about December 2014, Amidon made a series of arrangements with three other Iowa cattle ranchers to purchase legitimate cattle from them with counterfeit checks, for a total of $556,100; these deals ultimately fell through. At the same time, Amidon attempted to convince ranchers from Nebraska, South Dakota, and Missouri that he desired to purchase their cattle but needed to complete the deal quickly, as Amidon falsely represented that those cattle were required to board a barge leaving for Turkey. Amidon hoped that the urgency and speed of the transaction would deflect attention from the illegitimate funds that would have garnered him $1,201,600 had he been successful in his efforts.
In fashioning its 38 month sentence, the Court stated that it took into its consideration the facts of the case as well as the defendant’s background and personal history.
This case was investigated by the Vermont State Police in cooperation with the Federal Bureau of Investigation. Pennsylvania State Police were also instrumental in the investigation and arrest in Coudersport, Pennsylvania. The United States Attorney expresses his gratitude for their cooperation and impressive investigation.
Amidon was represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
Oxford Resident Indicted on Wire Fraud ChargesRead the Press Release
OXFORD, Miss. - United States Attorney Felicia C. Adams and Donald Alway, Special Agent in Charge of the Federal Bureau of Investigation announced today that Tyler L. Smith, age 46, of Oxford, MS, appeared in Court and entered a plea of not guilty to a one Count Indictment charging him with wire fraud. The Indictment alleges that Smith induced lenders to provide him with loans based on false material misrepresentations and then failed to repay the loans. If convicted, Smith faces a maximum of twenty years in prison, a $250,000 fine, three years of post-release supervision and restitution in the amount of loss.
This matter is being prosecuted by the United States Attorney’s Office for the Northern District of Mississippi and the Federal Bureau of Investigation.
A filed copy of the Indictment is attached. An Indictment is merely an allegation of wrongdoing and Smith is presumed innocent until proven guilty.
Owner of String of Marijuana ‘Dispensaries’ Convicted of Drug TraffickingRead the Press Release
A south Puget Sound area resident who tried to hide his illegal drug dealing behind what he falsely claimed was a ‘medical marijuana’ dispensary consistent with state law, was convicted today in U.S. District Court in Tacoma of two federal charges related to drug distribution, announced U.S. Attorney Annette L. Hayes. The jury deliberated 4 hours before finding LANCE EDWARD GLOOR, 37, guilty of conspiracy to distribute marijuana, and manufacturing marijuana. The jury was unable to reach a verdict on conspiracy to commit money laundering and acquitted GLOOR of possession of a firearm in furtherance of a drug trafficking crime. GLOOR faces a mandatory minimum 5 years to 40 years in prison when sentenced by U.S. District Judge Ronald B. Leighton on April 15, 2016.
According to records filed in the case and testimony at trial, GLOOR and his long-time business associate were the subjects of law enforcement investigations as early as 2010. In the fall of 2010, local law enforcement officers executed a search warrant at GLOOR’s home where they discovered more than 70 marijuana plants and a firearm. While awaiting trial on charges filed in state court, GLOOR and his associate opened four so-called marijuana ‘dispensaries:’ Tacoma Cross, Lacey Cross, Seattle Cross, and over on the Kitsap Peninsula, KPN Cross. A joint state and federal law enforcement investigation revealed that these locations claimed to be medical marijuana “non-profit dispensaries” operating under state law, when in fact they were for profit businesses generating millions of dollars in gross revenues totally inconsistent with applicable state requirements. Search warrants were served on the business in 2011, and following that GLOOR claimed he was getting out of the marijuana business. In fact, further investigation and a second round of search warrants in 2013 revealed GLOOR was still operating two of the four dispensaries, but had attempted to hide his ongoing role.
GLOOR was indicted with two co-conspirators in November 2013. His co-conspirators have entered guilty pleas and are awaiting sentencing.
The case was investigated by the Thurston Narcotic Task Force (TNT) and the Drug Enforcement Administration (DEA). The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Marci Ellsworth.
North Little Rock Man Pleads Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Christopher Nichols, 25, of North Little Rock, pled guilty to a Superseding Information charging him with conspiring to commit wire fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today’s plea hearing took place in Little Rock before United States District Judge J. Leon Holmes. Judge Holmes will sentence Nichols at a later date.
On February 4, 2015, a Federal Grand Jury indicted Nichols on charges of wire fraud as part of a scheme to fraudulently obtain USDA program funds. The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Nichols operated as a sponsor for a feeding program through an organization called "A Vision For Success." Nichols’ aunt worked for DHS and DHS records indicate that his aunt submitted and approved the application for the 2014 contract year and approved the application for the 2014 contract year. "A Vision for Success" had two approved sites. The first was Waits Auto Repair in North Little Rock which at the time, was an auto business operated by Nichols’ uncle, Anthony Waits. The second site had a non-existent address. Claims were submitted that falsely represented the average daily attendance and greatly inflated the number of meals provided because no children were ever fed.
Nichols received a total of approximately $333,136.67. Of this money received, Nichols withdrew approximately $325,735.80 in cash, with a majority of that going to Waits. Nichols’s benefit was approximately $25,000–$35,000. Waits was charged in a Second Superseding Indictment filed on November 4, 2015, with conspiracy as part of a scheme to fraudulently obtain USDA program funds along with Waits’ wife, Gladys Waits, Jacqueline Mills, Dorothy Harper, and Tonique Hatton.
Nichols is the second person to plead guilty out of the nine people previously indicted concerning USDA feeding program funds. The nine indictments detail alleged fraud involving over $9 million in USDA feeding program funds. Kattie Jordan previously pled guilty to conspiracy to commit wire fraud on August 3, 2015.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
New York Man Pleads Guilty to Rushing Airline Cockpit and Saying “Jihad”Read the Press Release
ALEXANDRIA, Va. – David Patrick Diaz, 36, of Poughkeepsie, New York, pleaded guilty today to the charge of interference with flight crew members and attendants.
At his court appearance today, Diaz admitted to shouting threatening statements as he charged the cockpit of a United Airlines flight shortly after it took off from Dulles International Airport in March 2015. After being tackled by a group of passengers, Diaz said the word, “Jihad,” and he also said that there was something in the belly of the plane. The passengers and flight attendants were able to restrain Diaz until the plane returned safely to Dulles.
Diaz was indicted by a federal grand jury on Nov. 19, 2015. Diaz faces a maximum penalty of 20 years in prison when sentenced on April 1, 2016. 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; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Tyler McGaughey and Jonathan Fahey 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 Case No. 1:15-cr-324.
Muskogee Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DONNIE EUGENE DREW, age 26, of Muskogee, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Section 922 (g)(1).
The charge arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation, Eastern District of Oklahoma Violent Crime Task Force.
The Indictment alleged that on or about January 27, 2015, within the Eastern District of Oklahoma, the defendant, DONNIE EUGENE DREW, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Hopkins & Allen Arms “Safety Police”, .32 Caliber revolver handgun, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace represented the United States.
Monongalia County man sentenced for cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Larry Taylor, 71, of Osage, West Virginia, was sentenced today to 30 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Taylor sold cocaine in Monongalia County, West Virginia. He pled guilty in January 2015 to one count of “Distribution of Cocaine Hydrochloride.”
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Mexico Man Sentenced to 240 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
DALLAS, Texas — Alvaro Valencia-Sanchez, 29, from Apatzingan, Michoacan, Mexico, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 240 months in federal prison following his guilty plea in July 2015 to one count of possession with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Valencia-Sanchez’s co-defendant in the case, Francisco Landa-Bravo, 41, also from Apatzingan, Michoacan, Mexico, pleaded guilty in August 2015 to the same offense. He was sentenced to 121 months in federal prison.
According to documents filed in the case, on May 26, 2015, law enforcement officers conducted a controlled buy and purchased five kilograms of methamphetamine from the codefendant Francisco Landa-Bravo. The agents then searched the home belonging to Alvaro Valencia-Sanchez after it was identified as a “stash house” and found another 35 kilograms of methamphetamine, a clandestine laboratory, two firearms, and $68,441.
The Drug Enforcement Administration, Allen Police Department, Garland Police Department, and Rockwall Police Department investigated the case. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
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Meridian Man Sentenced to Prison on Drug ChargesRead the Press Release
Jackson, Miss - Arrington Lorenzo McGlothin, 46, of Meridian, was sentenced today by U.S. District Judge Daniel P. Jordan III to 280 months in federal prison followed by five years of supervised release for possession with intent to distribute more than 50 grams of Methamphetamine and possession of two bullet proof vests after having been previously convicted of a crime of violence, announced U.S. Attorney Gregory K. Davis.
McGlothin was arrested after agents received information that he was distributing narcotics in the Meridian, Lauderdale County areas. A search warrant was conducted at his residence in March, 2015. A seizure of methamphetamine, heroin, marijuana, multiple rounds of ammunition, two bullet proof vests and United States Currency resulted from the search of McGlothin’s residence.
This case is a result of a joint investigation by Homeland Security Investigations and the Mississippi Bureau of Narcotics with assistance from the Lauderdale County Sheriff’s Department. Assistant U.S. Attorney Erin Chalk prosecuted the case.