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15 December 2015
Former Legislative Clerk Pleads Guilty to White Powder Hoax on Floor of Iowa LegislatureRead the Press Release
DES MOINES, IA – On December 14, 2015, Michael Dekota McRae, 28, appeared
before the Honorable John A. Jarvey and pled guilty to conveying false information concerning a
biological weapon, announced Acting United States Attorney Kevin E. VanderSchel.
According to the plea agreement, McRae, a former legislative clerk to Iowa State
Representative Ako Abdul-Samad, admitted to writing a threatening letter addressed to
Representative Abdul-Samad. The letter contained racial slurs and threats to kill both McRae
and Representative Abdul-Samad. McRae subsequently inserted the letter, along with a white
powdery substance, into an envelope which he placed into a legislative mail receptacle. On
April 3, 2012, McRae opened the threatening letter on the chamber floor during an active session
of the Iowa Legislature. When McRae opened the letter, the white powder was released and
came into contact with McRae and Representative Abdul-Samad.
McRae also admitted in the plea agreement that he intended the white powder simulate a
biological agent or toxin, and he perpetrated the hoax for the purpose of creating fear in others.
McRae is scheduled to be sentenced before Chief Judge Jarvey on March 25, 2016, at
9:00 a.m. in Des Moines, Iowa. Conveying false information concerning a biological weapon is
a felony that carries up to five years imprisonment and up to a $250,000 fine. McRae may also
be required to reimburse the state for costs associated with the commission and investigation of
this crime.
Former Bookkeeper for Veterans Services Organization Pleads Guilty to Fraud, Tax OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CYNTHIA TANNER, 54, of Darien, pleaded guilty today in Hartford federal court to fraud and tax evasion offenses stemming from her embezzlement of approximately $800,000 from a Connecticut-based veterans services organization.
According to court documents and statements made in court, TANNER was employed as a bookkeeper for the National Veterans Service Fund (“NVSF”) located in Darien. The stated mission of the NVSF was to provide case managed social services and limited medical assistance to Vietnam and Persian Gulf War veterans and their families, with a focus on families with disabled children. From approximately January 2009 through June 2014, TANNER used nearly $800,000 in NVSF funds to pay various personal expenses for her and her family members. She also altered records to conceal her scheme and by falsely claiming that the stolen monies were being paid to veterans in need.
In addition, TANNER failed to report $794,768.47 in embezzled income on her 2009 through 2013 federal tax returns, resulting in a tax loss of $270,026.
TANNER pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 11, 2016.
TANNER was arrested on related state charges on June 2, 2014. She is released on a $50,000 bond.
This investigation is being conducted by the U.S. Secret Service, Internal Revenue Service – Criminal Investigation Division and Darien Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Federal, state authorities collaborate to enhance drug enforcement and educationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Federal and state authorities unveiled a unique partnership today designed to intensify efforts in West Virginia to combat drug trafficking and enhance prevention initiatives.
United States Attorney William J. Ihlenfeld, II, and West Virginia Attorney General Patrick Morrisey announced that two attorneys from the Attorney General’s Office will be designated as special assistant United States attorneys. In their federal capacity, these attorneys will handle drug cases with a special emphasis on the prosecution of heroin trafficking organizations from Baltimore, Maryland.
“The Eastern Panhandle is an attractive market to drug dealers, especially those with a base of operation in Baltimore,” said Ihlenfeld. “This partnership will help to address that threat and is part of our continuing efforts to leverage new resources and techniques to save lives and strengthen our response to the distribution of drugs in West Virginia.”
“Federal partnerships are critical to winning this battle,” Attorney General Morrisey said. “By joining with U.S. Attorney Ihlenfeld, together our offices mount a strong offensive aimed at taking back the neighborhoods and communities where dealers peddle prescription painkillers and heroin – a deadly epidemic already killing far too many of our citizens across northern West Virginia.”
The partnership will also build upon current substance abuse prevention and education initiatives targeting West Virginia youth. These efforts will include, among other programs, interactive presentations to local schools specifically designed to highlight stories of West Virginia families that have been impacted by drug abuse and addiction.
Assistant Attorney General Lara Omps-Botteicher has been cross-designated as a Special Assistant U.S. Attorney and was recently sworn in by Chief U.S. District Court Judge Gina M. Groh. A second attorney from Morrisey’s office will be given the same designation in the near future.
Since 2011, the U.S. Attorney’s Office has utilized special assistants to handle cases in federal court involving drugs and violent crime. Prosecutors from Brooke, Ohio, Harrison, Berkeley and Jefferson counties have participated in the program.
Federal Jury Finds Career Offender from Albuquerque Guilty of Crack Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict late yesterday afternoon finding Gabriel Mirabal guilty on narcotics trafficking and firearms charges after a six-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez, 1st Judicial District Attorney Angela R. “Spence” Pacheco, Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division, and New Mexico State Police Lt. Scott McFaul who serves as the Commander of the HITDA Region III Drug Task Force.
U.S. Attorney Damon P. Martinez said that Mirabal, a 34-year-old Albuquerque resident, was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” violent and repeat offenders for federal prosecution. “Since turning 18, Mirabal has engaged in criminal conduct resulting in state felony convictions in Bernalillo, McKinley and Santa Fe Counties for aggravated assault with a deadly weapon, cocaine and methamphetamine trafficking, aggravated battery with a deadly weapon, and assault on an officer. This conviction – Mirabal’s one and only federal conviction – will make our communities safer by taking Mirabal off our streets for 30 years.”
“This conviction is a significant step towards making our communities safer by rooting out drug dealers and other criminal elements. We are pleased to have worked with the U.S. Attorney's Office, the DEA and the HIDTA Region III Drug Task Force to bring this career offender to justice,” said 1st Judicial District Attorney Angela R. Pacheco.
This is a prime example of how the ‘worst of the worst’ initiative is making a difference in New Mexico. For over 15 years, Mr. Mirabal had no regard for the law or the safety of this community, endangering the lives of New Mexicans,” said DEA Special Agent in Charge Will Glaspy. “Now he’s looking at a good 30 years of sitting in a prison cell to think about his actions.”
Lt. Scott McFaul, Commander of the HIDTA Region III Drug Task Force, added, “This is another great example of what can happen when agencies share information, combine resources, and work together.”
Mirabal was one of five men indicted in April 2013, on narcotics and firearms charges as the result of “Operation Rio Grande Stucco,” a DEA investigation into an organization led by Mirabal that manufactured and distributed cocaine base, more commonly known as “crack,” in Bernalillo and Santa Fe Counties, N.M. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the course of the investigation, which utilized electronic surveillance (wiretaps), law enforcement officers seized more than 100 grams of crack, over a kilogram of cocaine, a loaded firearm and assorted ammunition, and body armor.
The investigation resulted in the filing of a five-count indictment in April 2015, that charged Mirabal and four co-defendants, Santa Fe residents Robert Romero, 27, and Michael Jaramillo, 25, and Albuquerque residents Sam Elyicio, Jr., 39, and Dominic Anaya, 34, with conspiracy to distribute crack in Bernalillo and Santa Fe Counties between May 2012 and April 2013, and substantive crack trafficking offenses. After his four co-defendants entered guilty pleas, Mirabal was charged in a six-count superseding indictment with participating in a crack distribution conspiracy, two counts of possession of cocaine with intent to distribute, using a firearm in furtherance of a drug trafficking crime, being a felon in possession of a firearm and ammunition, and being a felon in possession of body armor.
Mirabal’s trial on the six-count superseding indictment began on Dec. 7, 2015, and concluded late yesterday when the jury returned a verdict finding Mirabal guilty on four of the six counts. The jury convicted Mirabal on the conspiracy charge, one count of possession of cocaine with intent to distribute, and being a felon in possession of a firearm, ammunition and body armor. It acquitted him on one count of possession of cocaine with intent to distribute and using a firearm in furtherance of a drug trafficking crime.
Mirabal remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Mirabal faces an enhanced penalty of not less than 20 years to life imprisonment on the narcotics trafficking charges based on his prior drug trafficking conviction. Because of his status as a career offender, Mirabal also faces an enhanced sentence of 30 years to life imprisonment.
The charges against Mirabal’s co-defendants have been resolved as follows:
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Jaramillo pled guilty on March 21, 2014, to a conspiracy charge, and was sentenced on July 30, 2014, to 78 months in prison followed by four years of supervised release.
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Romero pled guilty on May 13, 2014, to crack trafficking and firearms charges, and was sentenced on Aug. 13, 2014, to 120 months in prison followed by four years of supervised release.
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Elyicio pled guilty on June 23, 2014, to a conspiracy charge, and was sentenced on Sept. 22, 2014, to 125 months in prison followed by four years of supervised release.
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Anaya pled guilty on Aug. 5, 2014, to a conspiracy charge, and remains in custody pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Drug Task Force, with assistance from the 1st Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Nicholas J. Ganjei and Joel R. Meyers.
The Region III Drug Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department, the Santa Fe County Sheriff’s Office and the Rio Arriba County Sheriff’s Office and receives support from the HIDTA – High Intensity Drug Trafficking Area – program. HIDTA is a program of the White House Office of National Drug Control Policy that provides assistance to federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States.
Mirabal was prosecuted under the federal “worst of the worst” anti-violence. 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.
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El Dorado Hills Man Sentenced to 2.5 Years in Prison for Embezzling More Than $400,000 from EmployerRead the Press Release
SACRAMENTO, Calif. —Jeffrey Lamson, 51, of El Dorado Hills, was sentenced today to two years and six months in prison for wire fraud in connection with a scheme to embezzle money from his former employer, United States Attorney Benjamin B. Wagner announced.
According to court documents, from at least 2009 through 2011, Lamson embezzled over $400,000 from a company in Placer and Sacramento Counties while he served that company as controller. Lamson used company funds to make unauthorized payments to himself and others and made payments to a fictitious vendor, controlled by Lamson, for services that were never performed. Lamson was ordered to pay over $400,000 in restitution for his fraudulent conduct.
Lamson was sentenced by United States District Court Judge John A. Mendez. During sentencing, Judge Mendez observed, “You are a contradiction. You work hard, you seem to be intelligent. I don’t understand why you did what you did. It’s puzzling to me.”
This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation and its Financial Crimes Task Force. Assistant United States Attorneys Shelley D. Weger and Jean M. Hobler are prosecuting the case.
Eight Arrested as Federal Authorities Dismantle Violent GangRead the Press Release
A 13-count indictment was unsealed today in United States District Court for the Eastern District of New York charging eight members and associates of the Zheng Organization with crimes including racketeering, narcotics trafficking, extortion offenses, illegal gambling, and soliciting assaults. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), William J. Bratton, Commissioner, New York City Police Department (NYPD), and Christopher Shanahan, Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
“For years, Zheng and his associates committed violent acts to make money, protect their territory, and as retribution for perceived slights. Violent gangs are a blight on our neighborhoods, and we will do all in our power to prevent them from casting a shadow of violence over our streets,” stated United States Attorney Capers. “The arrests and charges announced today are a testament to our commitment to dismantling violent criminal organizations and making our communities safe.” Mr. Capers thanked the Joint Asian Organized Crime Taskforce, which is comprised of members of the FBI, NYPD, and ERO, for their help with the government’s investigation.
“The Zheng Organization used violence and an array of criminal activities to enhance their power and protect their territory. It’s gang related activity like this that infects our communities with an illness that kills our neighborhoods’ safety and growth. However, there is an antidote to this that is made of law enforcement working at both the federal and local level to get gangs like this off the street,” said Assistant Director-in-Charge, Diego Rodriguez.
“These arrests demonstrate our dedication to protecting our communities from the shake downs and intimidation this gang carried out across the city,” said Police Commissioner William J. Bratton. “This case is the latest example of the utility of the task force model in rooting out violence in all of its forms. I applaud the work of the prosecutors from the US Attorney’s Office in the Eastern District and the FBI agents and NYPD detectives on the Joint Eurasian Organized Crime Task Force for their dedication on this case and the many others.”
The Zheng Organization was based in and around the Sunset Park neighborhood of Brooklyn and the Flushing neighborhood of Queens. As alleged in the indictment and the government’s detention memorandum, the defendants participated in the affairs of the Zheng Organization through a variety of crimes. The charged crimes of violence included extortions and assaults for hire:
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In or about August 2013, Qian Zheng hired two individuals to assault victims identified in the indictment as John Doe 3 and Jane Doe.Zheng sought to have one of the victim’s leg broken and the other victim’s face scarred.
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In or about October 2013, Billy Chen and Jiang extorted a victim identified in the indictment as John Doe 1.In or about December 2013, Zheng conspired with Chen to further extort John Doe 1.Zheng hired two individuals to carry out the extortion and instructed them to beat John Doe 1 and fire shots into his restaurant so that he would pay an alleged debt.
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In or about October 2014, Zheng and Guifu Gao solicited the assault of a victim identified in the indictment as John Doe 4.Gao made clear that John Doe 4 needed to be crippled and that he should be beaten until he was half dead. Zheng similarly instructed those hired to carry out the beating to beat John Doe 4 severely.
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On May 28, 2015, Zheng sent his underlings, including Xin Lin, Kai Huan Huang, and Xue Jiang Gao, to collect money from a victim identified in the indictment as John Doe 2 at his gambling parlor.When John Doe 2 insisted that he did not owe any money, Lin, Huang, and Jiang Gao beat him with their fists and wooden stools, breaking a bone in John Doe 2’s hand.
The members and associates of the Zheng Organization also profited by narcotics trafficking and illegal gambling.
If convicted of the charges in the indictment, Zheng faces a maximum sentence of 164 years’ imprisonment; Hui Chen, Lin, Huang, and Jiang Gao each face a maximum sentence of 40 years’ imprisonment; Billy Chen and Jiang face a maximum sentence of 20 years’ imprisonment; and Gao faces a maximum sentence of 16 years’ imprisonment.
The government’s case is being prosecuted by the office’s Organized Crime and Gangs Section. Assistant United States Attorney Nadia E. Moore is in charge of the prosecution.
The Defendants:
QIAN ZHENG, also known as “Cash”
Age: 44GUIFU GAO, also known as “Chicken Feather”
Age: 35XIN LIN, also known as “Blackie”
Age: 33ALLEN HUI CHEN, also known as “Yi Hui”
Age: 43KAI HUAN HUANG, also known as “Shen Shen”
Age: 25BILLY CHEN, also known as “Lo Di”
Age: 42JIAYO JIANG, also known as “Yi Qiang”
Age: 45XUE JIANG GAO, also known as “Xue Zhang”
Age: 30-
Doctor Who Made over $1.3 Million Selling Unlawful Prescriptions for Pain Meds Sentenced to PrisonRead the Press Release
LAS VEGAS – A local doctor who sold prescriptions for pain medications to persons who did not have a medical necessity for them, and deposited the cash proceeds in a manner designed to avoid tax laws, has been sentenced to two years in prison, three years of supervised release, and ordered to forfeit over $1.3 million, announced United States Attorney Daniel G. Bogden for the District of Nevada.
Sebastian M. Paulin, Jr., 69, of Las Vegas, was sentenced on Monday, Dec. 14, by U.S. District Judge James C. Mahan. Paulin pleaded guilty in September to one count of distribution of a controlled substance and one count of structuring transactions to evade reporting requirements. He was permitted to self-report to prison by March 24, 2016.
“Dr. Paulin’s conduct was particularly egregious, even among noted “dirty doctors” in Las Vegas,” said U.S. Attorney Bogden. “Dr. Paulin handed out prescriptions for pills like he was a “Pez” dispenser. We are continuing to work with our federal and local law enforcement partners to shut down these dangerous, unlawful “pill mill” operations in Nevada.”
According to the plea agreement, Dr. Paulin was a Nevada-licensed physician who operated the Dr. Paulin Medical Center in Las Vegas. Dr. Paulin was the only physician working at the practice. On Jan. 31, 2011, Dr. Paulin wrote a prescription for Percocet to an undercover officer posing as a patient. The prescription lacked medical necessity and Dr. Paulin performed no or minimal physical exam and failed to refer the patient for further diagnosis, physical therapy, or diagnostic testing. Dr. Paulin’s medical practice generated large amounts of cash. Between February 7 and August 30, 2011, Dr. Paulin made 67 separate deposits totaling approximately $700,000 into personal bank accounts he controlled. Each deposit was structured in such a manner as to evade the filing of currency transaction reports.
According to the government’s sentencing memorandum, Dr. Paulin saw patients in two “shifts,” at 9am and 2pm. Patients arrived at the office as much as an hour before it opened. Large groups gathered outside the office and a “party atmosphere” ensued. Young and relatively healthy people engaged in loud talking, laughing, eating, and drinking. While waiting, patients exchanged advice on how to receive certain drugs from Paulin, about selling pills on the street for profit, and the best pharmacies at which to get their prescriptions filled. On one occasion, two individuals smoked marijuana in line outside of Paulin’s office.
Dr. Paulin is one of six doctors who have been convicted federally in Nevada over the last three years with unlawfully distributing prescription painkillers. Another is scheduled for trial in May 2016.
This case was investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, and Nevada Highway Patrol, and prosecuted by Assistant U.S. Attorneys Crane M. Pomerantz and Cristina Silva
Defendant Sentenced to 18 Months in Prison for Credit Card FraudRead the Press Release
BOISE - Rafael Perez, 31, of Sonora, Mexico, was sentenced today to 18 months in prison for wire fraud and possession of fifteen or more unauthorized access devices, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Perez to pay restitution in the amount of $13,301.64. Perez pleaded guilty on August 11, 2015.
According to the plea agreement, Perez admitted that in March 2015, he and two co-defendants traveled together from Mexico, through Montana, to Idaho in a vehicle rented in Sonora, Mexico, for the purpose of using counterfeit credit cards to make fraudulent purchases of merchandise and gift cards. In Montana, each defendant engaged in a number of transactions, using credit cards that the defendants knew to be counterfeit, at stores such as Auto Zone, TJ Maxx, Home Depot, Ulta, and others. The defendants jointly and fraudulently obtained merchandise valued at approximately $8,184.01 in Montana. In Boise, the defendants again engaged in a number of transactions, using credit cards the defendants knew to be counterfeit, at stores such as Lowe’s, Sports Authority, Barnes and Noble, Nordstrom Rack, JC Penney, and others. The defendants fraudulently obtained merchandise valued at approximately $5,117.63 in Boise. The defendants were arrested in possession of approximately 84 counterfeit credit cards embossed with their names, but encoded with victims’ credit card numbers, as well as merchandise purchased with the counterfeit credit cards, including GoPro Hero 4 Cameras, Samsung Galaxy Nooks, and video game systems.
The case was investigated by the United States Secret Service and the Boise Police Department.
Decavalcante Crime Family Associate Admits Distributing CocaineRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante organized crime family of La Cosa Nostra today admitted his role in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.
James Heeney, 36, of Elizabeth, New Jersey pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiring to distribute more than 500 grams of cocaine.
According to documents filed in this case and statements made in court:
Heeney was arrested and charged by complaint in March 2015, along with eight members of the DeCavalcante crime family. He admitted that between August 2012 and March 2013, in conjunction with other family associates, he sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $30,000.
The drug distribution count to which Heeney pleaded guilty carries a mandatory minimum of five years in prison, a maximum potential penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for March 23, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; detectives of the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park, for the investigation leading to today’s plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel: Paulette Pitt Esq. Woodbridge, New Jersey
Cuban Man Sentenced for Credit Card FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Eduardo Hernandez Quinones (Hernandez), 46, a Cuban National and former resident of Miami, Florida, who was convicted of conspiracy to commit bank fraud, was sentenced to 31 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $13,785.29 in restitution.Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Hernandez fraudulently obtained the authentic credit/debit card numbers of cardholders and then encoded that information onto counterfeit cards possessed by the defendant. The defendant then used the counterfeit cards to purchase merchandise at retail stores throughout Western New York. In addition, Hernandez used counterfeit cards to purchase gasoline from area gas stations and re-sold the gasoline for cash.
A total of six defendants have been charged in two related cases. Carrillo Chartrand, Claudia Diaz Diaz, Jose Valdivia Quinones, and Misael Toledo Rios have been convicted and are awaiting sentencing. Charges are pending against Yaily Santurio Milian. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the U.S. Secret Service, under the direction of Special Agent in Charge C. Todd Laster, and the New York State Police, under the direction of Major Michael Cerretto.
Crownpoint Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Emanuel Yazzie, 23, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a sexual abuse of a minor charge. Under the terms of his plea agreement, Yazzie will be sentenced to 36 months in federal prison followed by a term of supervised release to be determined by the court. Yazzie also will be required to register as a sex offender.
Yazzie was arrested on March 5, 2015, on an indictment charging him with sexual abuse of a minor. According to the indictment, Yazzie engaged in a sexual act with the victim who was under 16 years of age from March 28, 2014 through April 20, 2014, in Indian Country in San Juan County, N.M.
During today’s hearing, Yazzie entered a guilty plea to the indictment. Yazzie is in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Corey Bevins Sentenced to 25 Years in Prison for Making Pornographic Videos of Nine-Year-Old ChildRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of COREY VICTOR BEVINS, 39, to 25 years in prison for making pornographic images and videos of a nine-year-old child. BEVINS was originally charged by indictment on April 22, 2014, and pleaded guilty on June 30, 2015, to production, receipt and possession of child pornography. He was sentenced this morning in U.S. District Court in Duluth, Minn., before U.S. District Judge Richard H. Kyle.
“Bevins downloaded child pornography to help him groom a nine-year-old victim so that he could exploit that child,” said Assistant U.S. Attorney Deidre Aanstad. “He then produced child pornography of that same victim who he repeatedly sexually abused. The sentence imposed by the court is both fair and just.”
According to the defendant’s guilty plea, on July 17, 2012, BEVINS persuaded a nine-year-old child to engage in sexually explicit conduct so that he could make visual depictions, including videos, of such conduct. The videos show the defendant removing the child’s clothes and sexually assaulting the child. BEVINS also attempted to make child pornography involving the same child victim at least two other times during the summer of 2012.
According to the defendant’s guilty plea, on November 22, 2012, BEVINS used his computer to receive child pornography via a peer-to-peer file sharing program. The pornography depicted a pre-pubescent child engaged in sexually explicit conduct.
According to the defendant’s guilty plea, on January 7, 2014, within the confines of the White Earth Indian Reservation, BEVINS possessed at least five videos of child pornography depicting children engaged in various acts of sexually explicit conduct.
In total, BEVINS downloaded and possessed at least 60 digital media images and 269 videos of the sexual exploitation of children, including images and videos of prepubescent minors under the age of 12.
This was the result of an investigation conducted by the Federal Bureau of Investigation and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Deidre Y. Aanstad prosecuted this case.
Defendant Information:
COREY VICTOR BEVINS, 39
White Earth, Minn.Convicted:
- Production of child pornography, 1 count
- Receipt of child pornography, 1 count
- Possession of child pornography, 1 count
Sentenced:
- 25 years in prison
- 15 years supervised release
Convicted Felon Heads to Federal Prison for Illegally Possessing FirearmRead the Press Release
CORPUS CHRISTI, Texas - A 31-year-old Corpus Christi man has been sentenced following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Kenneth Magidson. James Lee Coddington pleaded guilty Sept. 3, 2015.
Today, U.S. District Judge Nelva Gonzalez Ramos ordered Coddington to serve 92 months in federal prison to be immediately followed by three years of supervised release.
The charge stems from an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Corpus Christi Police Department (CCPD).
In April 2015, CCPD officers responded to a call regarding a disturbance with a weapon involving Coddington trying to force entry into a house with a black handgun. The officers were able to locate Coddington, who had a previous felony conviction, and recovered a Glock 9mm handgun with a loaded 50 round drum magazine.
Coddington was arrested and taken into federal custody in June 2015 as part of Operation Rusty Hook. The operation was a coordinated effort by federal, state and local law enforcement to identify violent offenders, stop gun violence and protect the community.
In custody since his arrest, Coddington will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
This case was prosecuted by Assistant U.S. Attorney Lance Watt.
Coeur d’Alene Man Sentenced on Federal Child Pornography ChargeRead the Press Release
COEUR D'ALENE - Keith David Killingsworth, 38, of Coeur d’Alene, Idaho, was sentenced today to 75 months in prison for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. United States District Judge Stanley A. Bastian, a visiting judge from the Eastern District of Washington assigned to hear some Idaho cases, also ordered Killingsworth to pay $1,500 in restitution to a child in the images he possessed, and to serve 15 years of supervised release upon his release from prison. Killingsworth pleaded guilty to the charge on September 15, 2015.
According to the plea agreement, between July 2013, and December 2013, investigators with the Idaho Internet Crimes Against Children Task Force (ICAC) observed that a computer in Coeur d’Alene, Idaho, was making sexually explicit images of minors available on the internet. ICAC investigators were able to determine that the images were being shared from a computer at Killingsworth’s residence and obtained a search warrant.
ICAC investigators seized a number of computers from Killingsworth’s residence. A United States Secret Service forensic examiner later found that one of these computers, seized from Killingsworth’s bedroom, contained over 2,000 images and 67 videos, depicting minors engaged in sexually explicit conduct. Search terms indicated that Killingsworth was looking for child pornography. The National Center for Missing and Exploited Children determined that Killingsworth’s child pornography collection included images of minors from multiple states, including Washington, Indiana, New Jersey, Iowa, Texas, Georgia, Pennsylvania, and a number of foreign countries.
The case was investigated through the collaborative effort of the Coeur d’Alene Police Department, the Kootenai County Prosecutor’s Office, Boise Police Department, and the United States Secret Service. These agencies participate in the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
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.”
Cocaine Supplier Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Lincoln Normando Moquete, age 44, of Fort Lauderdale, Florida today to 12 years in prison, followed by five years of supervised release, for conspiracy and for possession with intent to distribute five kilograms or more of cocaine. Moquete was convicted by a federal jury on September 18, 2015, after a five day trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
According to trial testimony, on March 9, 2010, a Maryland State Police trooper stopped a vehicle on Interstate 95 in Cecil County for excessive speed and making an unsafe lane change. The driver was extremely nervous. A K-9 was called and alerted for the presence of narcotics. Troopers seized 13 kilogram size bricks of cocaine from the trunk.
Subsequent investigation revealed that Moquete had supplied the cocaine recovered from the car. Moquete’s fingerprints were recovered on the cocaine’s plastic wrappings and a plastic bag containing the cocaine. Evidence was also presented that Moquete had numerous phone contacts with a man to whom Moquete had supplied the cocaine, who in turn had provided the drugs to the driver. The driver was transporting the cocaine to New York.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA, and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted the case.
Chester Residents Charged in Fraud SchemeRead the Press Release
PHILADELPHIA - Steven Hameed, 56, Darnell Young, 48, and Damond Palmer, 41, all of Chester, Pennsylvania, were charged by indictment, unsealed today, with one count of conspiracy to commit offenses against the United States, one count of bank fraud, and one count of corrupt interference with Internal Revenue laws, announced United States Attorney Zane David Memeger. Hameed also faces three counts of conversion of government property, and Young was also charged with one count of conversion of government property. Hameed and Young also face a count of creating fictitious obligations.
According to the indictment, the defendants filed false land deeds with the Delaware County Recorder of Deeds Office in an attempt to claim ownership of homes owned by the government or by banks, and then to live in the homes, or rent/sell the homes to unsuspecting persons, for their own financial gain. The indictment further charges that the defendants filed hundreds of false tax forms against police officers, judges, and other government employees in an attempt to harass and intimidate them in the course of their official duties. Hameed and Young are also charged with creating a false financial bond in an attempt to purchase property.
If convicted, the defendants face substantial periods of incarceration, three-year periods of supervised release, restitution and substantial fines.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Treasury Inspector General for Tax Administration, the Federal Housing Finance Agency – Office of Inspector General, the Federal Deposit Insurance Corporation – Office of Inspector General, the Social Security Administration - Office of Inspector General, the Philadelphia Police Department, Delaware County Detectives, the Aston Police Department, and the Upper Darby Police Department. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cheko’s Crew/7th Street Gang Member and Associate Plead Guilty to Rico Conspiracy; Drug Supplier Pleads Guilty to Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that three defendants who were part of or associated with the Cheko’s Crew/7th Street Gang, pleaded guilty before U.S. District Judge Richard J. Arcara.7th Street Gang member Luis Medina, 24, and associate David Tirado, 29, both of Buffalo, NY, pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) conspiracy. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine, or both. Alejandro Navarro-Gonzalez, who supplied heroin to the Cheko’s Crew/7th Street Gang, pleaded guilty to conspiracy to distribute heroin which carries a mandatory minimum sentence of 10 years in prison, a maximum of life, and an $8,000,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that Luis Medina, as a member of the Cheko’s Crew/7th Street Gang, sold heroin and possessed firearms. In addition, on April 16, 2006, Medina shot a rival 10th Street Gang member with a .22 caliber firearm. Furthermore, on June 13, 2009, while being held in the Erie County Holding Center, Medina learned that his cousin Christian Portes was killed by the 10th Gang members. Medina made a phone call from the holding center requesting that fellow Cheko’s Crew/7th Street Gang members kill 10th Street Gang members in retaliation for the murder of his cousin. After being released on November 7, 2009, Medina himself fired shots at 10th Gang members.
As an associate, David Tirado sold a .22 caliber rifle to the Cheko’s Crew/7th Street Gang which was later used in the murder of rival 10th gang member Eric Morrow. Tirado also conducted a robbery at 39 Montclair Avenue in Buffalo, a residence he believed contained drugs and money.
Alejandro Navarro-Gonzalez supplied bulk quantities of heroin to the Cheko’s Crew/7th Street Gang which he received from a supplier in Chicago.
A total of 18 defendants have been charged in this case. To date, 17 have been convicted.
The pleas are 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, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.David Tirado will be sentenced on April 11, 2016, at 12:30 p.m.; Luis Medina on April 13, 2016 at 12:30 p.m.; and Alejandro Navarro-Gonzalez on April 14, 2016 at 12:30 p.m., all before Judge Arcara.
Carbon County Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON. The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted a Palmerton, Pennsylvania resident for drug trafficking and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Donald C. Fritz, Jr., age 43, with distribution of, and possession with intent to distribute, crystal methamphetamine. The indictment also charges Fritz with possessing six firearms in furtherance of a drug trafficking crime including a firearm with obliterated serial numbers.
The investigation was conducted by Homeland Security Investigations and the Pennsylvania Office of the Attorney General. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
Indictments contain only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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California Man Sentenced to 151 Months in Prison for Transporting Heroin to Monroe CountyRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 36-year-old California resident was sentenced to 151 months (12 years and seven months) in prison today by Senior U.S. District Court Judge Richard P. Conaboy in Scranton, for transporting heroin from California to Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Francisco Martinez-Rubio, a citizen of Mexico who was living in Fresno, California at the time of his arrest, admitted to transporting 23 kilograms of heroin from California to the Mt. Pocono area of Monroe County in July 2014.
Martinez-Rubio was indicted by a federal grand jury in July 2014, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police. He pleaded guilty on September 8, 2015, to possession with intent to distribute more than one kilogram of heroin.
Judge Conaboy ordered Martinez-Rubio to serve five years on supervised release following his prison sentence. Martinez-Rubio also faces possible deportation after serving his prison sentence.
Previously, Judge Conaboy sentenced co-defendants Jose Rosario Huizar-Rios to 46 months in prison, Livier Cantor-Huizar to 41 months in prison, and Yolanda Barreto-Rincon to 57 months in prison. Martinez-Rubio recruited those co-defendants to help him transport the drugs.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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Bethlehem Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted a man from Bethlehem, Pennsylvania for drug trafficking and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Clyford Francois, age 36, with possession with intent to distribute cocaine in May 2015. The indictment also charges Francois, a convicted felon, with possessing two firearms in furtherance of his drug trafficking activities. Francois was initially taken into custody by Hanover Township Police on a traffic stop.
The investigation is being conducted by the Bureau of Alcohol, Tobacco and Firearms Enforcement, the Federal Bureau of Investigation, and the Hanover Township Police Department. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments contain only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, 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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Baton Rouge Resident Indicted in Wire Fraud Scheme Involving $1.3 MillionRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced the unsealing of an indictment returned by a federal grand jury charging THOMAS J. TANNER, JR., age 49, of engaging in a scheme to defraud his former employer, ISC Constructors, LLC, along with Chevron U.S.A., Inc., of $1,300,000.
Specifically, the indictment charges that throughout 2013 and 2014, while working as the project manager of a job site in Pascagoula, Mississippi, TANNER caused false payroll information and false documentation to be submitted to ISC and Chevron. According to the indictment, TANNER caused the false documents to be submitted via email from the job site in Mississippi to ISC Headquarters in Baton Rouge, LA. Based on the false representations, TANNER unlawfully benefitted both financially and professionally over the course of approximately 14 months. The indictment charges TANNER with four counts of wire fraud, in violation of Title 18, United States Code, Section 1343. The indictment also includes forfeiture allegations.
U.S. Attorney Green stated: “Corporate fraud has increased in scope both in the United States and worldwide. Moreover, the high-speed nature of communications today has allowed corporate executives to, at times, transmit fraudulent documents via e-mail, with the belief that the documents will be quickly reviewed and approved and the underlying fraudulent scheme will not be discovered. My office will continue to devote the resources necessary to aggressively identify these schemes and prosecute those involved, as corporate fraud almost always results in the loss of significant corporate funds and, more importantly, corporate integrity.”
Assistant Special Agent-in-Charge Dan Evans stated: “The FBI New Orleans Division will continue to investigate allegations of wire fraud and similar while collar crimes that defraud Louisiana employers and residents.”
This ongoing investigation is being conducted by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Paul L. Pugliese.
NOTE: An indictment is an accusation by a grand jury and a defendant is presumed innocent unless and until adjudicated guilty at trial or through a guilty plea.
Baton Rouge Resident Convicted of Stealing Federal Dollars in Fraudulent Tax Refund SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that LAGUARDIA COSTON, age 28, of Baton Rouge, Louisiana, pled guilty before Senior U.S. District Judge James J. Brady to theft and conversion of government funds, in violation of Title 18, United States Code, Section 641. During the guilty plea hearing, COSTON admitted to preparing and filing numerous fraudulent tax returns using stolen personal identifiers, such as names and social security numbers, of 73 separate victims. In addition, COSTON admitted to unlawfully obtaining $102,000 in tax refunds from the U.S. Treasury.
As a result of IRS data analysis, COSTON was identified as a suspect in the preparation of fraudulent tax returns. In many instances, COSTON used names and social security numbers of unknowing victims to prepare fraudulent W-2 Forms that were then used to electronically file the fraudulent tax returns. COSTON also admitted to unlawfully obtaining tax refunds in the form of U.S. Treasury checks and electronic bank deposits.
U.S. Attorney Green stated: “This case is another example of my office working in conjunction with the IRS to aggressively identify and prosecute criminals who use stolen identities to defraud the United States and unlawfully obtain money to satisfy their own greed. We look forward to continuing our work with IRS-CI and other investigative agencies in the fight against such conduct.”
Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated: “We are pleased with Ms. Coston’s conviction. Identity theft is an on-going problem and IRS-CI will continue to vigorously investigate and prosecute those engaged in these illegal activities. Our agency will continue to work with the United States Attorney's Office to aggressively protect innocent taxpayers and preserve the integrity of our tax system. Participation in refund fraud schemes does not pay and those who do so will be prosecuted and held accountable for their illegal activities.”
This ongoing investigation is being conducted by the Internal Revenue Service’s Criminal Investigation Division. This matter is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Attorney and Stock Promoter Sentenced for Roles in Securities Fraud Conspiracy Involving ConnectAJet.comRead the Press Release
DALLAS — Attorney Martin Cantu, who was the CEO of Connect-a-Jet, and his co-defendant, stock promoter Jason Wynn, were sentenced today by U.S. District Judge Ed Kinkeade on felony convictions stemming from their roles in a conspiracy to deceive potential investors about the business of Connect-a-Jet, announced U.S. Attorney John Parker of the Northern District of Texas.
Cantu, 59, of San Antonio, Texas, was sentenced to 35 months in federal prison and was ordered to surrender his law license. Wynn, 33, of Lantana, Texas, was sentenced to serve a five-year term of probation. Judge Kinkeade ordered them to pay $423,938.66 in restitution. In addition, both defendants are subject to large SEC restitution orders; Wynn’s is nearly $11 million and Cantu’s is approximately $800,000.
Cantu was convicted at trial in May 2015 on both counts of an indictment charging one count of conspiracy to commit securities fraud and one count of securities fraud. Cantu, pleaded guilty in April 2015 to the conspiracy offense
Connect-a-Jet (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters. Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft. Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, founded the company and began its development. By the time Cantu became involved with the business, Wynn and Cantu had abandoned plans to turn the company into a legitimate business and instead focused on pumping and dumping the stock of Connect-a-Jet. Connect-a-Jet was traded on an exchange known as the Pink Sheets and had tens of thousands of public investors. Cantu, who is a licensed attorney with the state of Texas, owned the majority of shares of CAJT.
From approximately May to October 2007, Cantu and Wynn conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT. As part of their scheme, Wynn and Cantu caused public statements and advertisements, including ads in USA Today and commercials on CNBC, to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base. The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept and design stage. The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved. These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices. As part of the conspiracy, Cantu engaged in a cover-up of his crimes including providing false testimony to the Securities and Exchange Commission.
The indictment also named co-conspirator Ryan Reynolds, a former stockbroker, who pleaded guilty in the Southern District of Florida to conspiracy to commit securities fraud, based on his involvement in the CAJT conspiracy.
Over the course of 15 days in the fall of 2007, Cantu realized $552,341 in profits from the sale of 250,000 CAJT shares he controlled, which represented 83% of his total number of shares. Cantu sold these shares through an account in the name of his father. From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit www.stopfraud.gov.
The FBI investigated the case. Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch prosecuted.
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Attorney General Loretta E. Lynch Announces $2.7 Million in Grants to Strengthen the Justice System's Response to Sexual AssaultRead the Press Release
Attorney General Loretta E. Lynch today announced seven awards totaling $2.7 million in funding through the Department of Justice’s Office on Violence Against Women’s Sexual Assault Justice Initiative (SAJI) to improve how the justice system in general, and prosecution in particular, handles sexual assault cases. The seven pilot sites will implement performance measures that reflect promising practices for prosecuting sexual assault and promoting justice for victims, receiving technical assistance from AEquitas: The Prosecutor’s Resource on Violence Against Women and participating in the evaluation of the initiative.
“Sexual and domestic violence is a heinous crime, inflicting physical and emotional trauma that can linger for years, with grave consequences for survivors and their loved ones; for neighborhoods and communities and for our country as a whole,” said Attorney General Lynch. “The Department of Justice is committed to doing everything it can to help prevent, investigate and prosecute these horrendous crimes – including working to ensure that our greatest partners in this effort, the state and local law enforcement officers on whom we all rely, have the tools, training and resources they need to fairly and effectively address allegations of sexual assault and domestic violence.”
The seven pilot sites that will receive funding through the OVW’s Sexual Assault Justice Initiative are: Jefferson County Commission, Birmingham, Alabama; city of Los Angeles, Los Angeles; Cobb County Board of Commissioners, Marietta, Georgia; city and county of Honolulu, Honolulu; New Hampshire Department of Justice, Concord, New Hampshire; Cherokee Nation, Tahlequah, Oklahoma; and county of Sauk, Baraboo, Wisconsin. The awards for each site range from $390,000 – $400,000.
Attorney General Lynch made the announcement at an event announcing the release of a Justice Department guidance on “Identifying and Preventing Gender Bias in Law Enforcement Response to Sexual Assault and Domestic Violence,” in Washington, D.C. The grants are part of the Justice Department’s ongoing commitment to protecting women from violence and strengthening the capacity of communities to respond to domestic and sexual violence.
The demonstration initiative is designed to strengthen the justice system’s response to sexual violence and enhance collaborations among sexual assault victim services providers, law enforcement agencies and sexual assault medical forensic services providers. With funding from the Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program, the Rural Sexual Assault, Domestic Violence, Dating Violence and Stalking Grant Program and the Tribal Governments Grant Program, SAJI sites will be able to use the funds to strengthen services in their communities that support sexual assault victims.
For more information on OVW and its programs, please visit: www.justice.gov/ovw.
Alabama Resident Indicted for Stolen Identity Tax Refund Fraud SchemeRead the Press Release
An Alabama resident was arrested today after being indicted on Dec. 9 by a federal grand jury sitting in Montgomery, Alabama, on 15 counts of wire fraud, 15 counts of aggravated identity theft and two counts of passing U.S. Treasury checks with a false endorsement, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck, Jr. of the Middle District of Alabama.
According to the allegations in the indictment, James Vernon Battle, a resident of Montgomery County, used stolen personal identification information to prepare and file false federal income tax returns for tax years 2013 and 2014 for the purpose of obtaining fraudulent tax refunds. Battle directed the Internal Revenue Service (IRS) to issue the requested refunds by depositing the funds onto prepaid debit cards and by issuing U.S. Treasury checks.
If convicted, Battle faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, a mandatory minimum sentence of two years in prison for aggravated identity theft and a statutory maximum sentence of 10 years in prison for each count of passing a U.S. Treasury check with a false endorsement. He also faces substantial monetary penalties and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who investigated the case, and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
***media Advisory***Read the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin, joined by West Virginia State Police Major Tim Bradley and Mercer County Commissioner and Community Connections Executive Director Greg Puckett, will announce a new partnership to expand access to naloxone at a press conference at the Princeton Detachment of the West Virginia State Police on Wednesday, December 16, 2015, at noon.
Naloxone, a medication that can reverse the effects of opioid overdose and is commonly known as Narcan, has been successfully utilized by law enforcement and first responders to prevent drug overdose. U.S. Attorney Goodwin will introduce the new partnership between the West Virginia State Police and Community Connections that will provide overdose prevention training to West Virginia State Troopers in Mercer, McDowell, and Wyoming Counties.
WHO:
- United States Attorney Booth Goodwin
- West Virginia State Police Major Tim Bradley
- Mercer County Commissioner and Community Connections Executive Director Greg Puckett
WHAT:
- Press conference to announce expansion of access to naloxone through a new partnership
WHERE:
- WV State Police – Princeton Detachment
- 910 Oakvale Road
- Princeton, WV 24740
WHEN:
- Wednesday, December 16, 2015, at noon.
Follow us on Twitter: SDWVNews
14 December 2015
Wetzel County, WV man convicted of financial fraudRead the Press Release
WHEELING, WEST VIRGINIA – Clarence Joseph Jackson, 48, of New Martinsville, West Virginia, was convicted of financial fraud in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Jackson, also known as “Butch Jackson,” owned and operated Jackson’s Used Cars LLC in Wetzel County, West Virginia. Jackson’s business maintained an account at Union Bank, Inc. As a financial institution, Union Bank is required to file a Currency Transaction Report with the United States Department of the Treasury for any transaction in excess of $10,000. Multiple transactions are to be treated as a single transaction if the financial institution has knowledge that the individual transactions are by, or on behalf of, the same person, and the transactions cause currency in excess of $10,000 to be received or disbursed by the financial institution during any one business day. Between November 25, 2014 and December 10, 2014, Jackson attempted to avoid the aforementioned reporting requirements by dividing a large amount of cash proceeds into multiple different deposits into the business account at Union Bank.
Jackson pled guilty to a criminal Information charging him with one count of “Structuring Transactions to Evade Reporting Requirements.” He faces up to five years in prison and a fine of up to $250,000. In pleading guilty, Jackson also agreed to pay a money judgment in the amount of $23,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge James E. Seibert presided.
Visalia Man Pleads Guilty to Sex TraffickingRead the Press Release
FRESNO, Calif. — Tyrell Richmond, 33, of Visalia, pleaded guilty today to sex trafficking a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 21, 2014, FBI’s Fresno Child Exploitation Task Force and members of the Fresno Police Department’s Vice Unit conducted undercover operations targeting prostitutes who appeared to be underage. During the investigation, they detained three 16-year-old girls, all of whom were runaways, at a motel in Fresno. Further investigation revealed that Richmond had prostituted the girls for about one week, first in Visalia and then in Fresno. Richmond collected all of the money received by the girls, and did not permit them to leave their motel rooms, other than to get ice.
Richmond is scheduled to be sentenced on March 28, 2016. He faces a sentence of between 10 years and life 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.
This case is the product of an investigation by the Federal Bureau of Investigation, the Visalia Police Department, and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
U.S. Border Patrol Supervisor Sentenced to 21 Months in Prison for Placing Hidden Camera in Women’s RestroomRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Alessandra Serano (619) 546-8104 and Lara Stingley (619) 546-8403
NEWS RELEASE SUMMARY – December 15, 2015
SAN DIEGO – U.S. Supervisory Border Patrol Agent Armando Gonzalez was sentenced in federal court today to 21 months in prison for placing a hidden camera in a floor drain of the women’s restroom at the Chula Vista Border Patrol station to capture images of female private parts.
In handing down the sentence, U.S. District Judge Roger T. Benitez said the “facts of this case were shocking,” and he described the conduct as “egregious” and “a violation of trust.” Gonzalez was permitted to remain free on bond until January 22, when he is required to report to the U.S. Bureau of Prisons.
During today’s hearing, Assistant U.S. Attorney Alessandra Serano told the court that the defendant’s crimes warranted a significant sentence, noting that the camera was in place for about 18 months and the defendant spent a lot of time editing, naming and saving the videos.
“When Armando Gonzalez put a video camera down the drain of a women’s restroom, he also put his career, his honor and his freedom down that drain,” said U.S. Attorney Laura Duffy. “This is a fitting sentence for a man who sullied his badge with such despicable behavior.”
Gonzalez pleaded guilty in May to one count of making a false statement to a federal officer and seven counts of video voyeurism. He admitted that he placed a hidden camera in a floor drain of the women’s restroom at the Chula Vista Border Patrol station to capture images of female private parts.
Gonzalez, a supervisor, also admitted that when Border Patrol superiors confronted him about the camera, he lied to cover up his crimes, saying that he’d placed the camera in the bathroom to conduct a drug investigation of one of his female employees.
According to the plea agreement, Gonzalez acknowledged that he captured video images of the unclothed private parts of seven women – all federal employees - who used the bathroom between July 24, 2013 and April 11, 2014. The videos were as short as 24 seconds and as long as nine minutes, 17 seconds.
The defendant saved the video images from those instances, and dozens of others, on an SD card he kept hidden at his workplace, the plea agreement said. Gonzalez admitted that after the hidden camera was discovered, he destroyed or discarded the hard drive from the Apple MacBook used to edit the videos before law enforcement had a chance to execute a search warrant at his home.
DEFENDANT Case Number: 15cr0806-BEN
Armando Gonzalez Age 47 El Cajon, CA
SUMMARY OF CHARGES
One Count, False Statements to a Federal Officer, in violation of 18 U.S.C. 1001
Maximum Penalty: Five years in prison, $250,000 fine
Seven Counts, Video Voyeurism, in violation of 18 U.S.C. 1801
Maximum Penalty: One year in prison, per count, and $100,000 fine per count
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Department of Homeland Security
San Diego Police Department
U.S. Attorney Announces Department of Justice is Reviewing Darrius Stewart ShootingRead the Press Release
Memphis, TN – In light of multiple inquiries regarding the July shooting of teenager Darrius Stewart by a Memphis police officer, U.S. Attorney Edward L. Stanton III has announced that the Department of Justice (DOJ), in tandem with its Civil Rights Division, the U.S. Attorney’s Office, and the Federal Bureau of Investigation is conducting a comprehensive review of the matter.
In July, Stewart’s shooting was referred by local authorities to the Tennessee Bureau of Investigation (TBI). The TBI subsequently prepared a report for consideration by the Shelby County District Attorney General’s Office. In early November, a state grand jury declined to indict Memphis police officer Connor Schilling on charges related to the death of Stewart.
The DOJ has been conducting an independent, comprehensive, and careful review of the evidence collected related to the shooting of Stewart. A team of agents, along with experienced prosecutors from the U.S. Attorney’s Office and the DOJ’s Civil Rights Division in Washington, D.C., are conducting the review which encompasses all of the circumstances surrounding Stewart’s death.
At this time, the DOJ’s review is ongoing. The U.S. Attorney’s Office cannot disclose any information about the Department’s internal deliberations.
The U.S. Attorney’s Office and its federal, state and local partners take very seriously all allegations of civil rights violations by law enforcement officers. The Department will continue to devote the necessary resources to examine any such allegations and will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
U.S. Army National Guard Soldier Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
CHICAGO — A soldier in the U.S. Army National Guard pleaded guilty today to federal charges that he conspired with his cousin to provide material support to a foreign terrorist organization in the Middle East.
HASAN R. EDMONDS, 23, of Aurora, pleaded guilty to one count of conspiring to provide material support to a foreign terrorist organization, and one count of attempting to provide material support to a foreign terrorist organization. The terrorist organization is identified in a written plea agreement as the Islamic State of Iraq and the Levant, commonly referred to as ISIL, ISIS, or the Islamic State.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John P. Carlin, Assistant Attorney General for National Security; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
“The top priority of federal law enforcement is to protect the safety of our citizens, both here and abroad,” said U.S. Attorney Fardon. “We will vigorously investigate and prosecute those who align themselves with ISIL and its mission of brutal violence.”
“Hasan and Jonas Edmonds conspired to provide material support to ISIL,” said Assistant Attorney General Carlin. “They admitted planning to wage violence on behalf of ISIL in the Middle East and to conduct an attack on our soil. Thanks to the efforts of many prosecutors, agents, and analysts, we were able to ensure these plotters did not attain their violent endgames, and with these guilty pleas, they will be held accountable. Counterterrorism remains the Department’s highest priority, and we will continue use all available tools to combat ISIL, a foreign terrorist organization that rapes, murders and enslaves Muslims and non-Muslims alike.”
According to the plea agreement, Hasan Edmonds and his cousin, JONAS M. EDMONDS, devised a plan for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. On March 25, 2015, Jonas Edmonds drove Hasan Edmonds to Midway International Airport in Chicago so that Hasan Edmonds could board a flight to the Middle East, according to the plea agreement. After dropping off Hasan Edmonds, Jonas Edmonds went to Hasan Edmonds’ residence and retrieved several of Hasan Edmonds’ National Guard uniforms, which Jonas Edmonds planned to wear as a disguise during a planned attack at the National Guard base in Joliet, the plea agreement states.
Hasan Edmonds is a member of the Army National Guard and had trained at the Joliet installation.
Law enforcement agents on the Chicago FBI’s Joint Terrorism Task Force arrested Hasan Edmonds at Midway Airport before he could board his flight. Shortly thereafter the agents arrested Jonas Edmonds at his home.
The cousins are citizens of the United States.
The charges against Hasan Edmonds carry a combined maximum sentence of 30 years in prison and $500,000 fine. U.S. District Judge John Z. Lee scheduled a sentencing hearing for March 18, 2016, at 11:00 a.m.
Jonas Edmonds, 30, of Aurora, pleaded guilty last week to one count of conspiring to provide material support to a foreign terrorist organization, and one count of making a materially false statement to a law enforcement officer regarding an offense involving international terrorism. He faces a maximum sentence of 23 years in prison when he is sentenced by Judge Lee on Jan. 27, 2016, at 2:00 p.m.
The Joint Terrorism Task Force is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Illinois State Police, the Aurora Police Department and the Illinois National Guard provided significant assistance in the investigation.
The government is represented by Assistant United States Attorneys Barry Jonas and John Kness of the Northern District of Illinois; and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Plea Agreement
U.S. Army National Guard Soldier Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
A soldier in the U.S. Army National Guard pleaded guilty today to federal charges that he conspired with his cousin to provide material support to a foreign terrorist organization in the Middle East.
Hasan R. Edmonds, 23, of Aurora, Illinois, pleaded guilty to one count of conspiring to provide material support to ISIL, a designated foreign terrorist organization, and one count of attempting to provide material support to ISIL.
The charge was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois and Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Division.
“Hasan and Jonas Edmonds conspired to provide material support to ISIL,” said Assistant Attorney General Carlin. “They admitted planning to wage violence on behalf of ISIL in the Middle East and to conduct an attack on our soil. Thanks to the efforts of many prosecutors, agents and analysts, we were able to ensure these plotters did not attain their violent endgames, and with these guilty pleas, they will be held accountable. Counterterrorism remains the department’s highest priority, and we will continue use all available tools to combat ISIL, a foreign terrorist organization that rapes, murders and enslaves Muslims and non-Muslims alike.”
“The top priority of federal law enforcement is to protect the safety of our citizens, both here and abroad,” said U.S. Attorney Fardon. “We will vigorously investigate and prosecute those who align themselves with ISIL and its mission of brutal violence.”
According to the plea agreement, Hasan Edmonds and his cousin, Jonas M. Edmonds, devised a plan for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. Hasan Edmonds admitted that on March 25, 2015, Jonas Edmonds drove Hasan Edmonds to Midway International Airport in Chicago so that he could board a flight to the Middle East. According to the plea agreement, after dropping off Hasan Edmonds, Jonas Edmonds went to Hasan Edmonds’ residence and retrieved several of Hasan Edmonds’ National Guard uniforms, which Jonas Edmonds planned to wear as a disguise during a planned attack at the National Guard base in Joliet, Illinois.
Hasan Edmonds is a member of the Army National Guard and had trained at the Joliet installation.
Law enforcement agents on the FBI’s Chicago Joint Terrorism Task Force arrested Hasan Edmonds at Midway Airport before he could board his flight. Shortly thereafter the agents arrested Jonas Edmonds at his home. The cousins are citizens of the United States.
The charges against Hasan Edmonds carry a combined maximum sentence of 30 years in prison and $500,000 fine. U.S. District Judge John Z. Lee of the Northern District of Illinois scheduled a sentencing hearing for March 18, 2016.
Jonas Edmonds, 30, of Aurora, pleaded guilty last week to one count of conspiring to provide material support to a designated foreign terrorist organization and one count of making a materially false statement to a law enforcement officer regarding an offense involving international terrorism. He faces a maximum sentence of 23 years in prison when he is sentenced by U.S. District Judge John Z. Lee on Jan. 27, 2016, at 2:00 p.m.
The case is being investigated by the FBI’s Chicago Joint Terrorism Task Force. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Illinois State Police, the Aurora Police Department and the Illinois National Guard provided significant assistance in the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Barry Jonas and John Kness of the Northern District of Illinois; and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Hasan Edmonds Superseding Information
Two-Year Prison Sentence for Marijuana Cultivation in Sequoia National ForestRead the Press Release
FRESNO, Calif. —Ezequiel Armas-Ortiz (Armas), 49, of Michoacán, Mexico, was sentenced today to two years in prison by U.S. District Judge Lawrence J. O’Neill for conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation on public land, United States Attorney Benjamin B. Wagner announced.
According to court documents, Armas and co-defendant Macedonio Madrigal-Herrera (Madrigal), 44, also of Mexico, were responsible for watering 2,719 marijuana plants in the Brush Creek drainage of in the Sequoia National Forest in Tulare County. The marijuana cultivation activities caused extensive damage to the public land and natural resources. Zinc phosphide, a toxic pesticide from Mexico, was found at the site, along with fertilizer and trash. Trees and plants, newly generated following the 2002 McNally Fire, were cut down to make room for the marijuana. Water was diverted from a nearby stream that supports trout. Armas was also ordered to pay $4,200 in restitution to the U.S. Forest Service for the damage caused by his wrongful conduct.
Armas pleaded guilty on October 19, 2015. Madrigal is scheduled for a status conference in federal court in Fresno on January 19, 2016. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California National Guard, California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Two more defendants sentenced in Detroit to Huntington heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – Two men who participated in a heroin conspiracy between 2012 and 2015 were the latest defendants sentenced today in federal court in Huntington, West Virginia, announced United States Attorney Booth Goodwin. Sean L. Gist, 22, of Detroit, was sentenced to five years and three months in federal prison after previously pleading guilty to conspiracy to distribute 100 grams or more of heroin. Paul A. Roberts, Jr., 22, of Huntington, was sentenced to five years of probation after previously pleading guilty to maintaining a residence for the distribution of heroin.
From December of 2013 to January of 2015, Gist participated in a conspiracy, led by Kenneth E. Baxter, that transported heroin from Detroit to Huntington for distribution. Once the drugs reached Huntington, Gist provided heroin to multiple individuals for distribution. Gist also distributed heroin himself, arranged for the sale of heroin to a confidential informant on January 28, 2015, at Harris Riverfront Park in Huntington, and admitted that he possessed a firearm in connection with the conspiracy.
Roberts helped to secure one of the residences used in the conspiracy located at 403 Homestead Place in Huntington. From October of 2014 to December of 2014, Roberts, Coty E. Richardson, and others used the residence to store, package, and distribute heroin. On December 6, 2014, a United States Postal Inspector intercepted a package containing approximately 230 grams of heroin addressed to the residence. After agents delivered the package, they executed a search warrant, located Roberts in the residence, and seized heroin, equipment used to package and distribute heroin, more than $6,500 in cash, and four guns.
Several defendants have been convicted of federal drug charges as a result of the investigation, including Dustin S. Barton, who pleaded guilty in August of 2015 to distributing heroin, and Warren G. Howard, Jr., who pleaded guilty on December 7, 2015, to distributing heroin. This investigation has also resulted in prison sentences for additional defendants for their roles in the conspiracy, including Kenneth Baxter, who was sentenced to seven years and three months, Coty Richardson, who was sentenced to five years and ten months, Ramone L. Wells, who was sentenced to four years, and Pricilla Lee Dylan, who was sentenced to two years and nine months.
The Huntington FBI Drug Task Force, United States Postal Service, West Virginia State Police and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Individuals Indicted for Bank and Wire FraudRead the Press Release
SAN JUAN, Puerto Rico– On December 9, 2015, a Federal grand jury returned a seventy-nine count indictment charging Miosotis Ribot-Figueroa (Ribot) with bank fraud, wire fraud, and aggravated identity theft and charging Ribot and José F. González-Guzmán (González) with a total of four counts of monetary transactions in property derived from specified unlawful activity, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) is in charge of the investigation. The indictment was unsealed today upon the arrest of both defendants.
These charges stem from a scheme utilized by Ribot from approximately May to October 2014 to make thirty four unauthorized bank transfers from the bank account of her employer to bank accounts controlled by Ribot and/or González totaling approximately $490,165.42. Ribot was employed as an assistant controller for a Puerto Rico company that sold, distributed, and provided service for medical equipment. As a part of the scheme, Ribot logged into her employer’s computer network and accessed their bank’s system for processing payments and bank transfers to vendors and customers. Ribot then processed thirty-four unauthorized bank transfers to herself and González. Ribot submitted false and fraudulent invoices to correspond to the fraudulent bank transfers. Ribot also submitted false information into a journal voucher system to reflect that the bank transfer had been authorized by a supervisor. In doing so, Ribot utilized the names and signature of others to further the scheme to defraud.
Ribot and González are also charged with a total of four counts of monetary transactions in property derived from specified unlawful activity related to transactions in excess of $10,000 utilizing the stolen funds. Those four transactions have a total value of approximately $75,406.82.
The indictment alleges thirty-four counts of bank fraud, a violation of Title 18, United States Code, Sections 1344, thirty-four counts of wire fraud, a violation of Title 18, United States Code, Section 1343, seven counts of aggravated identity theft, of a violation of Title 18, United States Code, Section 1028A(a)(1), related to the possession and use without lawful authority of a means of identification in relation to bank fraud and wire fraud charged in the indictment, and four counts of monetary transactions in property derived from specified unlawful activity, a violation of Title 18, United States Code, Section 1957, related to monetary transactions in excess of $10,000 using the stolen funds. The total value of the fraud was approximately $490,165.42. Defendants are facing a money judgment of $490,165.42, a forfeiture allegation of a lot of land located in the Municipality of Gurabo with a surface of 509,000 acre, equivalent to 2,003.92 square meters, and a Vessel, a 2002 Doral International Model 360SE named Cizañas.
If found guilty, Ribot faces a maximum penalty of thirty years in prison for bank and wire fraud, ten years in prison for monetary transactions in property derived from specified unlawful activity, and a mandatory two year consecutive term in prison for aggravated identity theft. If found guilty, González faces a maximum penalty of ten years in prison for monetary transactions in property derived from specified unlawful activity.
The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Seth Erbe.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Two Charleston men plead guilty in Federal court to heroin traffickingRead the Press Release
CHARLESTON, W.Va. – Two defendants pleaded guilty today to federal heroin charges, announced United States Attorney Booth Goodwin. Anthony Lamar Jordan Honeycutt, 35, of Charleston, West Virginia, pleaded guilty in federal court in Huntington to possession with intent to distribute heroin. Leon Wilson, Jr., 43, of Charleston, pleaded guilty in federal court in Charleston to distributing heroin.
On December 16, 2014, drug task force officers working with the Metropolitan Drug Enforcement Network Team stopped Honeycutt in downtown Charleston. Honeycutt was on his way to deliver heroin to a confidential informant working with law enforcement. Officers found Honeycutt in possession of approximately 42 grams of heroin at the time of his arrest. Honeycutt faces up to 20 years in federal prison and a $1 million fine when he is sentenced in federal court in Huntington on March 14, 2016. The case against Honeycutt was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
Another defendant, Leon Wilson, Jr., admitted that in May of 2015, he sold heroin to a confidential informant working with law enforcement authorities on three separate occasions. The drug deals took place at Wilson’s Charleston apartment. After these drug deals, the Kanawha County Sheriff’s Department executed a search warrant at Wilson’s residence. Officers found over $1,000 cash in Wilson’s possession, which included some of the pre-recorded buy money used in one of the drug deals with the confidential informant. Wilson faces up to 20 years in federal prison and a $1 million fine when he is sentenced in federal court in Charleston on March 16, 2016. The case against Wilson was investigated by the Kanawha County Sheriff’s Department, Sheriff’s Tactical Operations Patrol Team. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down drug trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Turlock and Merced Hydroponics Supply Store Owner Pleads Guilty to Structuring Cash Transactions and Filing a False Tax ReturnRead the Press Release
FRESNO, Calif. —Branden Adam Eidson, 35, of Turlock, pleaded guilty today to structuring financial transactions and filing a false tax return, United States Attorney Benjamin B. Wagner announced.
According to court documents, Eidson, the owner of Hooked Up Hydroponics, a hydroponics supply store, failed to report more than $1.2 million in income from his business for the tax years 2008 through 2010. This unreported income resulted in a tax loss to the Internal Revenue Service of more than $430,000. In addition to misreporting his income, Eidson deposited more than $1.5 million in cash into his bank accounts in amounts of $10,000 or less to prevent his banks from filing Currency Transaction Reports on those transactions.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Drug Enforcement Administration. Assistant United States Attorney Grant B. Rabenn and Special Assistant U.S. Attorney Katherine Plante are prosecuting the case.
Eidson is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 21, 2016. Edison faces a maximum statutory penalty of five years in prison and a $250,000 fine for structuring, and three years and a $250,000 fine for filing a false tax return. 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.
Topeka Man Sentenced for CarjackingRead the Press Release
TOPEKA KAN. – A Topeka man was sentenced Monday to three years in federal prison for carjacking, U.S. Attorney Barry Grissom said.
Marcus Anthony Montoya, 23, Topeka, Kan., pleaded guilty to one count of carjacking. In his plea, he admitted that on Jan. 12, 2015, he and a co-defendant physically assaulted a Topeka man and stole the keys to the victim’s 1999 Ford Mustang. The assault occurred in the 1800 block of Michigan Avenue in Topeka. The victim didn’t get his car back until March 29, 2015. The car had suffered extensive damage.
Co-defendant Michael Minh Koy, 25, Topeka, Kan., is set for sentencing March 14.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jarred Maag for their work on the case.
Topeka Man Sentenced for Bank RobberyRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Monday to three years in federal prison for bank robbery, U.S. Attorney Barry Grissom said.
Kirk Mychale Sexton, 27, Topeka, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Jan. 9, 2015, he robbed the Equity Bank at 3825 S.W. 29th Street in Topeka. He entered the bank wearing a blue hoodie with the words “Topeka Water” on the back and handed a clerk a note demanding money. He left the bank with the cash. Police stopped him nearby after seeing red dye from a dye pack on his clothes.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Timothy Chesser Sentenced for Methamphetamine Manufacturing ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On Dec. 14, 2015, Timothy Chesser, 35, of Harriman, Tenn., was sentenced to serve 240 months in prison, by the Honorable Pamela L. Reeves, U.S. District Judge, for conspiracy to manufacture 50 grams or more of methamphetamine (meth) and possession of precursors used to manufacture meth. Upon his release from prison, he will be supervised by the U.S. Probation Office for 10 years. His federal sentence is consecutive to any Roane County, Tennessee state sentence he may receive for pending charges.
Chesser was charged along with several others in a July 2014 indictment. He pleaded guilty to the offenses described above in August 2015. According to documents on file with U.S. District Court, between 2012 and 2014, Chesser conspired with at least one other person to manufacture and distribute at least 50 grams of meth in various locations in east Tennessee. According to pharmacy records and the statements of others, he purchased, or had others purchase for him, pseudoephedrine that he used to manufacture meth.
This case was investigated by the Roane County Sheriff’s Office, Harriman Police Department, Rockwood Police Department, Kingston Police Department, Tennessee Bureau of Investigation, and Federal Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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Thirty-Four Facing Federal and Tribal Charges Arising Out of Methamphetamine Trafficking on Mescalero Apache ReservationRead the Press Release
ALBUQUERQUE – Thirty-four individuals are facing federal and tribal drug charges as the result of an 18-month multi-agency investigation spearheaded by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and thirteen non-Natives are charged in six indictments and a criminal complaint filed in the U.S. District Court for the District of New Mexico in Nov. and Dec. 2015. Sixteen other members of the Mescalero Apache Tribe are charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014 in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization allegedly led by Lorenzo Saenz, a member of the Mescalero Apache Tribe, which distributed methamphetamine within the Reservation. It later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation.
In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
“Methamphetamine has a disproportionate devastating impact on tribal communities, accounting for up to 40% of violent crime on reservations,” said District of New Mexico U.S. Attorney Damon P. Martinez. “This investigation is an example of the Justice Department’s commitment to working with Tribal Governments to improve the safety of Native communities and increase awareness of the dangers of methamphetamine use.”
“I want to thank the BIA’s Division of Drug Enforcement and Office of Justice Services, the DEA and the U.S. Attorney’s Office for the many, many hours they put forth during this investigation,” said President Danny Breuninger of the Mescalero Apache Tribe. “Before and since taking Office as the President of the Mescalero Apache Tribe, I heard complaints from our Tribal Members and saw the pain and suffering caused by illegal drug use and sales on our Reservation. Many of our young people are being poisoned by methamphetamine and lives are being shattered by senseless drug-related injuries and deaths. As the leader of my Tribe, it is my job to do all I can to preserve the safety and welfare of our people and to preserve our culture, traditions and customs. The great majority of our Tribal Members are great people who work hard every day to support their families and raise their children with the values and traditions that have been passed down generation after generation. But continuing to do this is very hard when our Tribal Members’ lives are being torn apart by illegal drug use. I call on the Federal Government, including the President, the Attorney General and Congress, to continue supporting and working with BIA and tribal police departments in these types of collaborative efforts throughout Indian Country. Thank you again for all of the support and dedication in serving the Mescalero Apache Tribe.”
Saenz and four other members of the Mescalero Apache Tribe are charged in four federal indictments with distributing methamphetamine within the Mescalero Apache Reservation. Saenz and a co-defendant are alleged to have participated in a methamphetamine trafficking conspiracy during which they sold methamphetamine to undercover agents on multiple occasions. Saenz was one of two federal defendants arrested on Dec. 11, 2015, when 13 of the 16 tribal defendants were also arrested. A third federal Mescalero Apache defendant is in state custody on unrelated charges and the remaining two have yet to be arrested.
Thirteen non-Natives, alleged members of two drug trafficking organizations that supplied the methamphetamine distributed within the Mescalero Apache Reservation, are charged in two other federal indictments and a federal criminal complaint. Eight of the non-Natives are charged with methamphetamine trafficking and money laundering offenses in a 24-count indictment; three are charged with methamphetamine trafficking offenses in a five-count indictment; and two are charged with methamphetamine trafficking offenses in a criminal complaint. Eight of the non-Natives have been arrested, two are in state custody on unrelated charges, and three have yet to be arrested.
“The DEA and Bureau of Indian Affairs dismantled three drug trafficking organizations distributing methamphetamine on the Mescalero Apache Reservation and across southeastern New Mexico,” said Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division. “This is our warning to others who think they can hide their crimes on Tribal Lands: we are coming for you.”
“The BIA would like to thank the DEA and the U.S. Attorney’s Office for an outstanding collaborative effort that shows the resolve of our law enforcement partners to address the issue of illicit drug use in Indian Country and their dedication to provide safe communities for Indian people,” said Special Agent in Charge William McClure of District IV of BIA’s Office of Justice Services. “The many hours and resources that went in to this operation have increased the safety of tribal community members and reduced their fear of the danger posed by these individuals charged and their associates.”
“Methamphetamine continues to have a devastating effect on Native American families and communities throughout Indian Country,” said Gary Cunningham, Regional Agent in Charge of BIA’s Division of Drug Enforcement. “The results of this multi-agency investigation are a great example of what can be accomplished when the Bureau of Indian Affairs and other federal, state and local law enforcement agencies combine efforts and resources to remove these drug trafficking organizations from our communities. Indian Country is grateful for these partnerships and BIA will continue to work with our law enforcement partners to aggressively remove these negative elements from our communities.”
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force.
The following additional agencies assisted the investigating agencies with law enforcement operations on Nov. 20, 2015 and Dec. 11, 2015: U.S. Marshals Service, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, New Mexico State Police, HIDTA Interagency Metro Narcotics, New Mexico National Guard, Chaves County Metro Narcotics Task Force, Pecos Valley Drug Task Force, Alamogordo Police Department, Ruidoso Police Department, Socorro Police Department Sunland Park Police Department and Tularosa Police Department.
Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Alta Braham is prosecuting the tribal cases.
Defendants Charged in Federal Indictments
The indictment filed in United States v. Saenz, 15-CR-4105 RB, charges Alvino L. Saenz, 49, a member of the Mescalero Apache Tribe, with distribution of methamphetamine. Saenz was arrested on Dec. 11, 2015.
The indictment filed in United States v. Lester, 15-CR-4106 RB, charges Glen Joel Lester, 38, a member of the Mescalero Apache Tribe, with distribution of methamphetamine. Lester has yet to be arrested and is considered a fugitive.
The indictment filed in United States v. Saenz, et al., 15-CR-4110 RB, charges Lorenzo Y. Saenz, 51, and Rona Antone Morin, 44, both members of the Mescalero Apache Tribe, with conspiracy and distribution of methamphetamine. Saenz was arrested on Dec. 11, 2015. Morin has yet to be arrested and is considered a fugitive.
The indictment filed in United States v. Tafoya, et al., 15-CR-4112 RB, charges the following eight non-Natives with methamphetamine trafficking and money laundering offenses:
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Carlos Tafoya, Jr., 34, of Socorro, N.M., was arrested on Nov. 13, 2015.
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Robin Lee Lovelace, 55, of Alamogordo, N.M., was arrested on Nov. 13, 2015.
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Jerilyn Lee Muñoz, 27, of Artesia, N.M., was arrested on Nov. 20, 2015.
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Patricia Kay Portillo, 54, of Carrizozo, N.M., is in state custody on unrelated charges and will be transferred to federal custody to face the charges in the indictment.
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Robert Alan Rutledge, 33, of Alamogordo, N.M., was arrested on Dec. 2, 2015.
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Justin Aaron Hudkins, 33, of Alamogordo, N.M., was arrested on Nov. 20, 2015.
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Audrey J. Gomez, 30, of Hobbs, N.M., was arrested on Nov. 20, 2015.
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Tandie Sheree Bettag, 37, of Alamogordo, N.M., was arrested on Dec. 8, 2015, after she was transferred from state custody to federal custody.
The indictment filed in United States v. Herrera, et al., 15-CR-4407 RB, charges the following three non-Natives with methamphetamine trafficking offenses:
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Octavio Herrera, 53, of Ruidoso Downs, N.M., has yet to be arrested and is considered a fugitive.
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Rumaldo Varela Enriquez, 45, of Lovington, N.M., has yet to be arrested and is considered a fugitive.
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Johnny Flowers, 50, of Hobbs, N.M., has yet to be arrested and is considered a fugitive.
The criminal complaint filed in U.S. v. Boutte, et al., 15-MJ-4009, charges the following two non-Natives with methamphetamine trafficking offenses:
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Cedric James Boutte, 32, of Clovis, N.M., is in state custody on unrelated charges and will be transferred to federal custody to face the federal charges against him.
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Tanya Schree Cain, 33, of Clovis, N.M., was arrested on Nov. 20, 2015.
Members of the public with information on the whereabouts of the five federal fugitives (Rumaldo Varela Enriquez, Johnny Flowers, Octavio Herrera, Glen Joel Lester and Rona Antone Morin) are asked to contact the DEA in Las Cruces at (575) 526-0700. Tips also can be “texted” to Tip411.
Defendants Charged in Tribal Criminal Complaints
The following members of the Mescalero Apache Tribe are charged in Mescalero Apache Tribal Court with conspiracy and possession of methamphetamine:
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Geraldine Jacqueline Baca, 45 (not arrested)
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Wynette R. Baca, 48
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Niles Caje
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Lydia Yolanda Cervantes, 57
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Teresa Cooper
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Raenette Rose Evans, 34
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Louise Glossop, 28
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Rosemary Harrington, 32
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Timothy R. Johnson, 26
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Cullen Kaydahzinne, 27
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Theresa Rae Lester, 25 (not arrested)
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Bryan P. Martinez, 32 (not arrested)
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Ventura Peralta, 35
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Sheri R. Platero, 36
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Jeanette Robinson
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Rebekah J. Victor, 32
Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
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San Jose Man Pleads Guilty to $37M Cisco FraudRead the Press Release
SAN JOSE – Cuong Cao “Calvin” Dang pleaded guilty in federal court late Friday afternoon to running a business selling products stolen from Cisco Systems by its employees, Acting United States Attorney Brian Stretch, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Andrew Toth announced today. In pleading guilty, Dang admitted to running Network Genesis, whose business, according to the plea agreement, was “overwhelmingly that of buying and selling merchandise stolen from Cisco” by its employees. Dang admitted that from January 2006 until Network Genesis was raided by federal law enforcement officers in January 2013, sales revenues totaled approximately $37,000,000.
According to the plea agreement, Dang, 45, of San Jose, Calif., owned and operated Network Genesis, based in San Jose, from approximately January 2006 until January 23, 2013. He also owned The Dang’s Investment, Inc. (TDI), which managed residential and commercial real estate properties Dang bought using profits generated from Network Genesis. Dang also worked at Cisco for almost five years between 1999 and 2004. He admitted to having a small network of Cisco employees who delivered stolen Cisco merchandise to Network Genesis for resale to customers both in and outside California. Dang admitted that, to cover his tracks, he changed the serial numbers on the stolen merchandise and created fraudulent “test sheets” to give to customers. (A test sheet shows the diagnostic information, including the serial number, for a particular part.)
To conceal how much he was making from the scheme, Dang admitted using nominees to launder the illicit proceeds. He directed some of his customers to send checks to his co-defendants instead of paying Network Genesis directly. In return for commissions from Dang, his co-defendants cashed some of those checks and deposited others into their own bank accounts, then withdrew the cash in structured amounts and funneled the money back to Dang. In this way, Dang was able to obtain large amounts of cash without having the money go through bank accounts associated with him or his businesses.
Dang was initially indicted by a federal Grand Jury on July 24, 2013, when he was charged with conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349; six substantive mail fraud counts, in violation of 18 U.S.C. § 1341; two counts of engaging in financial transactions using criminally derived proceeds, in violation of 18 U.S.C. § 1957; and forfeiture allegations.
The grand jury returned a superseding indictment on October 30, 2013, in which seven additional defendants were charged with various offenses relating to Dang’s scheme. In the superseding indictment, Dang was also charged with six counts of money laundering, in violation of 18 U.S.C. §§ 1956(a)(1)(A)(i) and (a)(1)(B)(i). Under the plea agreement, he admitted guilt to one count each of conspiracy to commit mail fraud (Count One), substantive wire fraud (Count Two), money laundering (Count Eight), and engaging in financial transactions using criminally derived proceeds (Count Seventeen). Dang is currently free on a $2.5M secured bond.
Dang’s sentencing hearing is scheduled for March 28, 2016, at 1:30 p.m., before the Honorable Edward J. Davila, United States District, in San Jose. The maximum statutory penalties he faces are: (1) for Count One, 20 years’ imprisonment and twice the gross gain he derived from the offense; (2) for Count Two, the same penalty as Count One; (3) for Count Eight, 20 years’ imprisonment and $500,000, or twice the value of the property involved in the transaction, whichever is greater; and (4) for Count Seventeen, 10 years’ imprisonment and $250,000, or twice the value of the property involved in the transaction, whichever is greater. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Restitution would usually also be ordered to be paid to the victim; however the parties agreed in the plea agreement that no restitution should be ordered in light of a Civil Settlement Agreement entered into between Dang and Cisco in Case No. 5:14-cv-01789-EJD.
A co-defendant, former Cisco employee Loc Xuan Hoang, pleaded guilty on February 11, 2015, to conspiring with Dang to commit mail fraud. His sentencing is pending. The superseding indictment remains pending against the following co-defendants: Emily Le, David Huynh, Thuy Nguyen, Long Pham, and Edwin Lin, each of whom is scheduled to return to court on December 21, 2015, at 1:30 p.m., for further status. Co-defendant Hieu Nguyen is a fugitive. (Any person with knowledge of his whereabouts is urged to contact IRS Criminal Investigation at 510-529-1923.)
Assistant United States Attorney David R. Callaway is prosecuting the case with the assistance of Elise Etter and Karen Bishop. The prosecution is the result of an investigation by the IRS Criminal Investigation, with the assistance of the Santa Clara R.E.A.C.T. Task Force.
Rochester Man Sentenced for Passing Coutnerfeit MoneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Dashawn Sanders, 25, who was convicted of conspiracy to pass counterfeit currency, was sentenced to 14 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Sanders conspired with co-defendants Tiffany Key, Shamell McCullough and Turemail McCullough to pass approximately $10,980 of counterfeit $20 bills at local retailers, including Walmart and Dollar General.
Tiffany Key has been convicted and is awaiting sentencing. Charges are pending against Shamell and Turemail McCullough. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation by the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster.Pennsylvania man convicted of heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raheem Cuffee, 31, of Philadelphia, Pennsylvania, was convicted of heroin trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Cuffee was among 21 individuals charged in a 65-count federal indictment in November 2014. The indictment disrupted a drug distribution operation designed to transport large quantities of heroin and prescription painkillers across state lines from Pennsylvania into West Virginia for redistribution and sale. The leader of the operation, Juwan Woods, 32, of Philadelphia, Pennsylvania, pled guilty in April 2015 to one count of “Aiding and Abetting the Distribution of Oxycodone within 1000 feet of a Protected Location.” Woods was sentenced to 87 months in prison in August 2015.
Specifically, Cuffee sold heroin near Wiles Hill Playground in April 2014 in Monongalia County, West Virginia. He pled guilty to one count of “Aiding and Abetting Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Metro Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pee Dee Area Men Charged in Drug ConspiracyRead the Press Release
Contact Person: First Assistant U.S. Attorney Beth Drake (803) 929-3000
Columbia, South Carolina------United States Attorney Bill Nettles stated that nine individuals were charged in a 22-count indictment returned by the Florence Division Grand Jury for conspiring to distribute cocaine, cocaine base and heroin in the Pee Dee area of South Carolina [including Darlington, Florence and Williamsburg counties] in violation of Title 21, United States Code Section 846. This case originated with an investigation into the illegal activities of neighborhood street gangs in Hartsville, SC. Those recently indicted and arrested as part of this coordinated local, state and federal investigation were Otis Craig Dollard; Patrick O’Neal Hines, a/k/a “Bam”; Keith Huggins, a/k/a “Little Keith”; Justin Martin Jackson, a/k/a “Juiceman”; Benjamin Unique McCoy a/k/a “Paypa”; Chavis Vantay McCray, a/k/a “Chavo Manifoe”; Anthony James Pressley, a/k/a “Styler”; Roderick Scott, a/k/a “Bucket” and Tavares Lamore Wingate, a/k/a “Black.”
During the arrest and search warrants executed as part of this coordinated effort, law enforcement seized over a kilogram of cocaine, five ounces of cocaine base, cash and three firearms that were used as part of this drug trafficking network.
These arrests follow months of intense investigation and evidence collection by local, state and federal law enforcement partners that focused on concerns about violence, gangs and substantial drug trafficking in the Pee Dee area. Assisting in the investigation and apprehension operation included members of the FBI, SLED, Fifteenth Circuit Drug Enforcement Unit, Darlington County Sheriff’s Office Drug Unit, Florence County Sheriff’s Office, Florence Police Department, Sumter County Sheriff’s Office, Sumter Police Department, Williamsburg County Sheriff’s Office and the South Carolina Department of Probation, Parole and Pardons Services.
The case is assigned to Assistant United States Attorney Christopher D. Taylor. The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Owners of Nick’s Roast Beef Charged with Skimming Nearly $6 Million in CashRead the Press Release
BOSTON – The two owners of Nick’s Famous Roast Beef in Beverly, and the wife of one of the owners, were charged in an indictment unsealed today in U.S. District Court in Boston in connection with skimming nearly $6 million in cash receipts from the business over a six year period, and not reporting that cash income on their business or personal tax returns.
Nicholas Koudanis, 65, of Topsfield, Nicholas Markos, 69, of Lynn, and Eleni Koudanis, 60, were charged with one count of conspiracy to defraud the United States by obstructing the IRS and 10 counts of aiding and assisting in the filing of false tax returns. Steven Koudanis, 39, the son of Nicholas and Eleni Koudanis, was charged with one count of endeavoring to obstruct and impede the due administration of the Internal Revenue Laws.
According to the indictment, Nicholas Koudanis and Nicholas Markos own Nick’s Famous Roast Beef in Beverly, which only accepts cash payment. From 2008 to 2013, Nicholas Koudanis and Markos allegedly skimmed more than $1 million in cash receipts each year which they failed to report on either the corporate tax returns or their personal tax returns, thereby avoiding the payment of nearly $1 million each in personal income taxes during that period. According to the indictment, the two personally split up the cash receipts every week, determining how much to deposit into the business’s bank account and report on their tax returns, how much to use to pay suppliers and employees, and how much to keep for themselves. The indictment alleges that Eleni Koudanis had primary responsibility for the book-keeping functions of the business, and also recruited employees, including her son Steven Koudanis, to create false cash register receipts to use in connection with an IRS tax audit of Nick’s Famous Roast Beef. The true cash register receipts were allegedly destroyed and not provided to the tax preparer who prepared the business and personal tax returns. According to the indictment, Nicholas and Eleni Koudanis also amassed more than $1.6 million in cash as of December 2014, which they kept in a safe in their home.
The charge of conspiracy to defraud the United States provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Each tax charge provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Orthodox Jewish Rabbi Sentenced to More Than Three Years in Prison for Role in Conspiracy to Violently Extort Divorce Consent from Reluctant HusbandRead the Press Release
TRENTON, N.J. - An Orthodox Jewish rabbi was sentenced today to 38 months in prison for his role in a conspiracy to coerce a Jewish man to give his wife a religious divorce – referred to as a “get” – through threats of violence, U.S. Attorney Paul J. Fishman announced.
Martin Wolmark, 57, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to travel in interstate commerce to commit extortion. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Aug. 7, 2013, Wolmark, an ordained Orthodox Jewish rabbi, spoke with a woman and her brother about obtaining a Jewish divorce from the woman’s recalcitrant husband. A get is a divorce document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce. Unbeknownst to Wolmark, the woman and the brother were actually undercover FBI agents.
During the conversation, which was recorded by law enforcement, Wolmark informed the agents that there were two ways to go about obtaining a get from such a recalcitrant husband, one of which was to “nail him.” Wolmark also told the agents that coercing the husband into giving a get could be expensive. He then recommended that the agents speak with his colleague, Mendel Epstein, 70, of Lakewood, New Jersey, who he knew had previously used violence to coerce recalcitrant husbands into giving gets to their wives. Wolmark then initiated a conference call with the agents and Epstein.
On Aug. 14, 2013, the agents met with Epstein at his home to discuss the case further. On Oct. 2, 2013, Wolmark convened a rabbinical court (a “beth din”) with Epstein and Jay Goldstein in his office in Suffern, New York. The purpose of this proceeding was to determine whether there were grounds under Jewish law to coerce the husband into giving the get. The female agent also attended and recorded the meeting. During this meeting, Epstein discussed openly the plan to kidnap and assault the purported husband in order to obtain the get.
On Oct. 9, 2013, a group of Wolmark’s conspirators – including Jay Goldstein, 61, Moshe Goldstein, 32, Avrohom Goldstein, 36, Simcha Bulmash, 32, Binyamin Stimler, 40, David Hellman, 33, and Sholom Shuchat, 31, all of Brooklyn, and Ariel Potash, 42, of Monsey, New York – traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing the purported husband to give his wife a get by means of violence and threats of violence.
In addition to the prison term, Judge Wolfson ordered Wolmark to serve two years of supervised release and pay a $50,000 fine.
Avrohom Goldstein, Potash, Shuchat, Moshe Goldstein, Hellman, and Bulmash have all pleaded guilty to one count of traveling in interstate commerce to commit extortion. Avrohom Goldstein and Potash were sentenced Nov. 19, 2015 to 45 and 14 months in prison, respectively. Shuchat was sentenced to time served on Nov. 19, 2015. Moshe Goldstein was sentenced Nov. 16, 2015 to 48 months in prison. Hellman and Bulmash were sentenced Nov. 17, 2015 to 44 and 48 months in prison, respectively.
Epstein, Jay Goldstein and Stimler were all convicted at trial on April 21, 2015. Epstein, who was convicted of conspiracy to commit kidnapping, is scheduled for sentencing on Dec. 15, 2015. Stimler and Jay Goldstein, both convicted of conspiracy to commit kidnapping and attempted kidnapping, are scheduled for sentencing on Dec. 15, 2015 and Dec. 16, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel: Benjamin Brafman Esq., New York
Northfield Vermont Man Charged with Unlawfully Possessing and Transferring ExplosivesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Mark McCloud, 45, of Northfield, Vermont has been charged in United States District Court with: (1) unlawfully possessing explosive devices; and, (2) unlawfully transferring an explosive device, in violation of federal law.
According to a Criminal Complaint and Affidavit filed today, the United States alleges that on December 9, 2015 McCloud lit an explosive device he was holding in his hand outside his residence in Northfield. The device exploded and McCloud lost his left hand and multiple bystanders were injured. The United States alleges the explosive device was made of copper tubing and explosive powder. According to the complaint affidavit, in executing a search warrant at McCloud’s residence, law enforcement officers found several feet of fusing materials consisting of fusing material commonly known as “quick match” or “instantaneous fuse.”
The United States also alleges that earlier that day McCloud gave one of these explosive devices to a neighbor and therefore, unlawfully transferred the explosive device. The Vermont State Police removed this device from the neighbor’s residence and it is currently being stored in an explosive bunker pending further analysis.
The District Court issued a summons for McCloud to appear for an initial appearance on December 21, 2015. If convicted, McCloud faces a maximum possible penalty of ten years in prison for each charge and fines of up to $250,000. If convicted, McCloud’s actual sentence will be advised by the Federal Sentencing Guidelines.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Vermont State Police, and the Northfield Police Department. The United States is represented by Assistant U.S. Attorney Joseph Perella.
Newington Man Admits Stealing Social Security Benefits Delivered to Deceased GrandmotherRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEDRIC NEWMAN, 46, of Newington, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of theft of public funds.
According to court documents and statements made in court, NEWMAN’s grandmother was entitled to receive Social Security Administration (“SSA”) monthly benefit payments starting in 1980. The payments were made by direct deposit into a bank checking account. Although NEWMAN’s grandmother passed away in October 1996, the direct deposit payments continued until June 2014.
In March 2011, NEWMAN began accessing the funds in the account to make electronic payments on his credit card. From the time of his grandmother’s death until June 2014, approximately $220,729 of monthly benefit payments, net of Medicare premiums, were directly deposited into her bank account. NEWMAN used $218,079 of the funds for his own benefit.
Judge Hall scheduled sentencing for March 9, 2016, at which time NEWMAN faces a maximum term of imprisonment of 10 years, a fine of up to twice the amount of money stolen, and mandatory restitution to the Social Security Administration.
This matter is being investigated by the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Anastasia Enos King.
New York Attorney Found Guilty in Manhattan Federal Court of Fraud in Connection with A Scheme to Purchase Maxim MagazineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HARVEY NEWKIRK, formerly counsel at Bryan Cave LLC, the New York law firm, was found guilty today of wire fraud in connection with his participation in a scheme to fraudulently induce lenders to provide tens of millions of dollars toward the purchase of Maxim Magazine and related assets (“Maxim”).
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury found, Harvey Newkirk, a lawyer and officer of the court, defrauded lenders out of millions of dollars by lying as part of a scheme to acquire Maxim Magazine. Sworn to practice law ethically, Newkirk instead practiced deceit and dishonesty. For that, the jury has convicted him of a serious federal crime.”
As established by the evidence at trial:
In connection with the potential purchase of Maxim by a company (the “Company”) controlled by Calvin Ramarro Darden (“Darden Junior”), from in or about August 2013 to on or about February 11, 2014, NEWKIRK told a series of lies to lenders to induce the lenders to provide tens of millions of dollars in capital toward the purchase of Maxim. In order to mislead the lenders into believing that they would receive sufficient collateral for their loans, NEWKIRK falsely promised them that Calvin Darden (“Darden Senior”), the former Senior Vice President of U.S. Operations of UPS, and a member of the Board of Directors of Coca-Cola Enterprises, Target Corporation, and Cardinal Health, Inc., would pledge his personal stock holdings in the latter three companies as collateral for the loans. In addition to knowingly making this false promise, NEWKIRK concealed from lenders that, as NEWKIRK knew, the stock owned by Darden Senior was subject to restrictions, and could not be pledged as collateral for any loans. NEWKIRK further falsely promised at least six lenders that each would have a first and sole priority interest in the purported collateral when, as NEWKIRK well knew, only one lender could have any such interest.
NEWKIRK, who represented the Company in the attempted Maxim acquisition in his capacity as an attorney at Bryan Cave, engaged in the fraud in part because NEWKIRK secretly owned part of the Company’s parent company (the “Parent Company”), and would share in any of the Parent Company’s profits resulting from the acquisition. NEWKIRK hid his partial ownership of the Parent Company from Bryan Cave and others. NEWKIRK further lied to Bryan Cave about his relationship with Darden Senior, falsely claiming that Darden Senior had been NEWKIRK’s client for many years when, in truth and in fact, and as NEWKIRK well knew, NEWKIRK had never represented Darden Senior.
In the course of the fraud, NEWKIRK provided lenders with account statements that purported to show Darden Senior’s stock holdings. In truth, however, the account statements were fake documents, and Darden Senior was not providing any financial support for the purchase of Maxim. Also in the course of the fraud, NEWKIRK went to great lengths to hide from Darden Senior, and from Bryan Cave, the existence of a lawsuit filed by one lender in which that lender sought to obtain the collateral of Darden Senior that NEWKIRK had fraudulently pledged to the lender. NEWKIRK deliberately caused a default judgment to be entered against Darden Senior in that lawsuit, knowing that he had concealed the existence of the lawsuit from both Darden Senior and Bryan Cave.
Furthermore, after one of the lenders placed approximately $5.5 million in escrow at Bryan Cave, Darden Junior arranged for a fraudulent email to be sent to NEWKIRK that purported to have been authored by the lender. In response to that fraudulent email, and with knowledge that the email was in fact fraudulent, NEWKIRK released approximately $4.9 million of the lender’s money from the escrow account to fund the purchase of Maxim. Moreover, in an effort to close the deal, NEWKIRK also falsely represented to another individual that approximately $12 million, consisting of funds supposedly provided by, or secured by the personal assets of, Darden Senior, had been placed in escrow at Bryan Cave. In truth and in fact, no funds were ever held in escrow at Bryan Cave in connection with the purchase of Maxim, other than the $5.5 million placed in escrow by the lender described above, which was subsequently misappropriated by NEWKIRK. Lenders lost a total of $8 million in connection with the fraud.
NEWKIRK was found guilty of one count of wire fraud, and found not guilty of one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Sentencing is scheduled for April 14, 2016, before United States District Judge Jed S. Rakoff, who presided over the trial. NEWKIRK faces up to 20 years in prison on the wire fraud charge. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of NEWKIRK will be determined by the judge.
Mr. Bharara praised the investigative work of the United States Secret Service and the Federal Bureau of Investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Andrew C. Adams and Sarah E. Paul are in charge of the prosecution.