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1 December 2015
San Joaquin County Man Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
SACRAMENTO, Calif. — Nicholas Michael Teausant, 22, of Acampo, pleaded guilty today to attempting to provide material support or resources to a foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin and United States Attorney Benjamin B. Wagner.
According to court documents, on March 17, 2014, Teausant was arrested near the Canadian border en route to Canada with the intent of continuing to travel to Syria to join the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. On March 26, 2014, Teausant was indicted on one count of attempting to provide material support or resources to a terrorist organization. He pleaded guilty to the single count in the indictment without a plea agreement. Teausant is scheduled to be sentenced by United States District Judge John A. Mendez on March 8, 2016.
“Nicholas Michael Teausant attempted to travel overseas to join ISIL and to provide material support to the terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism, and we are committed to stemming the flow of foreign fighters abroad and holding accountable those who attempt to provide material support to designated foreign terrorist organizations.”
“This case, like others in communities across the United States and around the world, is an example of how a young person from any place and any background might make the terrible decision to try and become part of a terrorist organization,” U.S. Attorney Wagner stated. “Fortunately, the FBI intervened in this case before any harm could be inflicted upon innocent persons. We hope that this case will be a reminder to us all to stay vigilant and involved in the lives of our youth, and in particular with respect to the dangerous influences they may be subject to on the Internet where these organizations are very active.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the San Joaquin Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection. Assistant United States Attorneys Jean M. Hobler and Jason Hitt and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are prosecuting the case.
Teausant faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Salt Lake City Residential Mortgage Lender Enters into Settlement Agreement to Resolve Non-Compliance with Housing and Urban Development RegulationsRead the Press Release
DENVER – U.S. Attorney John Walsh today announced that the U.S. Attorney’s Office, working on behalf of the U.S. Department of Housing and Urban Development (HUD), entered into a settlement agreement with RANLife, Inc., a Salt Lake City, Utah corporation that originates and underwrites residential mortgage loans that are insured by HUD’s Federal Housing Administration (FHA). The settlement agreement resolves allegations that RANLife was not complying with HUD’s regulations regarding issuing residential loans.
FHA insurance protects lenders, such as RANLife, against losses due to defaults on the FHA-insured loans. If the borrower of an FHA-insured mortgage loan defaults, the holder of the mortgage can submit a claim to HUD for any loss from the default. In return, lenders are required to comply with HUD rules and regulations in originating and underwriting the FHA-insured mortgage loans to ensure the borrowers and mortgage loans are creditworthy of FHA insurance.
According to the settlement agreement, between January 1, 2007, and March 31, 2012, RANLife originate, underwrote and endorsed for FHA insurance a total of 96 loans, all of which went into default within the first two years of the loan, and ultimately resulted in FHA insurance claims paid by HUD. The United States contends for certain of these loans that RANLife failed to comply with HUD rules and regulations in originating, underwriting, and endorsing the loans for FHA insurance. The settlement agreement is neither an admission of liability by RANLife nor a concession by the United States that its claims are not well founded.
The agreement requires RANLife to pay the U.S. a total of $1,032,714.96 over the next three years to satisfy the terms of the settlement agreement.
“RANLife falsely claimed to be in compliance with HUD rules on mortgage loans so that HUD – and U.S. taxpayers – would insure RANlife from losses on those loans,” said U.S. Attorney John Walsh. “This sort of conduct contributed to the mortgage crisis of 2008 and hurt not only the housing market, but the entire economy. As a result of this misconduct, RANlife will pay the taxpayers over $1,000,000 to compensate for giving faulty loans that ultimately went into default.”
“The settlement announced today is the culmination of over three years of work by HUD OIG and our continued efforts to identify and properly respond to instances of fraud against HUD’s mortgage insurance program,” said Special Agent in Charge David R. Barnes, HUD OIG.
This matter was investigated by the U.S. Housing and Urban Development’s Office of the Inspector General. The settlement agreement was obtained by the work of Assistant U.S. Attorney Jamie Mendelson.
Real Estate Agent/Broker Sentenced to a Year in Prison for Embezzling over $100,000 of Clients' MoneyRead the Press Release
WASHINGTON – Mark Alan Wall, 57, a real estate agent and broker from Washington, D.C., was sentenced today to a year and a day in prison on a theft charge stemming from the embezzlement of over $100,000 of his clients’ money, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Wall pled guilty to first-degree theft in May 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amy Berman Jackson. The judge sentenced Wall to a total of 24 months in prison, but suspended all but a year and a day of that time on the condition that he successfully complete three years of supervised release. Also, Wall was ordered to pay $117,000 in restitution to three victims of his crime.
According to a statement of the offense, signed by the defendant as well as the government, from about July 2010 to at least May 2013, Wall stole from real estate clients who had entrusted their money to him. He entered into agreements with clients to serve as their agent in purchasing residential property in the District of Columbia. The agreements stated that the clients would not be paying Wall an advance fee, nor did they agree to pay him a percentage of the purchase price. Instead, as in an arrangement typical of residential real estate sales of existing homes, Wall would be paid his commission by the seller of the property upon the completion of the transaction.
Wall convinced his clients to provide as their earnest money deposit an amount of money greater than typically used, saying that he would hold it in escrow for their benefit to demonstrate that they had sufficient money to close on future sales. He assured his clients that the money remained theirs unless and until they purchased a property. If the clients were unable to quickly succeed with an offer to purchase a home, Wall convinced them to deposit additional money telling them that it would strengthen their negotiating power for future offers.
As a licensed real estate agent and broker, Wall had a fiduciary duty to keep earnest money deposit client funds in a separate escrow bank account. Agents/brokers may not commingle the escrow funds with their own funds, use the escrow funds for a purpose other than the purpose for which they were entrusted to them, or fail to return the money when directed by the client.
Wall deposited the clients’ earnest money deposit checks into his operating account, rather than his escrow account. If the clients became dissatisfied with him and asked about their money, he assured them that their earnest money deposit money was maintained in an escrow account held at a federally insured bank. Wall did not maintain his clients’ money for their benefit; rather, he spent their money on himself and his expenses within a few weeks or months of receiving the funds. He also borrowed money from another person, falsely representing that he needed money to pay expenses of a real estate closing; having received the money, Wall used the money to replace the money he had stolen from clients in order that the settlement on their District of Columbia home may proceed. After the closing on the home, Wall falsely stated that the settlement did not occur and that buyers were forced to file a lawsuit against the sellers of the property. He did not repay the loan.
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier expressed appreciation for the work performed by detectives from the Metropolitan Police Department’s Criminal Investigation Division-Financial Crimes Section as well as by Special Agent Juan Juarez of the Fraud and Public Corruption Section of the U.S. Attorney’s Office. They also acknowledged the efforts of Paralegal Specialists Kristy Penny and Corinne Kleinman, and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
Priest Sentenced to Prison for Stealing Money from His Former ParishRead the Press Release
Edward Belczak, 70, the former priest of St. Thomas More Church in Troy, was sentenced to 27 months in prison for stealing $572,775 from his parish, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division and Chief Gary Mayer of the Troy Police Department.
During a hearing today before U.S. District Judge Arthur J. Tarnow, Belczak was sentenced to 27 months in prison and a two year term of supervised release based on his plea of guilty to mail fraud for devising and executing a scheme to steal and divert $572,775.32 from St. Thomas More Church over several years, and then creating yearly false financial reports that were mailed to the Archdiocese of Detroit that concealed his theft and diversion of the money for his own benefit.
At the time of his plea, Belczak admitted that in March 2005, he used $109,570.80 from St. Thomas More’s bank account to pay the down payment on a Wellington, Florida condominium. According to court records, in April and May 2006, Belczak diverted two checks totaling $420,200 payable to St. Thomas More from the estate of a deceased parishioner. In order to conceal his illegal conduct, Belczak opened an unauthorized business bank account in the name of “St. Thomas More c/o Edward Belczak” and deposited both checks into that account. Belczak used most of the money bequeathed to St. Thomas More for his own personal use, benefit and enrichment. From May 2008 through May 2012, a St. Thomas More parishioner donated money each year to the church, totaling $43,000, for the needs of the church. Each year, Belczak deposited the check made payable to St. Thomas More into the business bank account in the name of “St. Thomas More c/o Edward Belczak.”
In addition to the custodial sentence, the funds on deposit in Belczak’s Merrill Lynch and TD Ameritrade accounts and his Florida condominium were forfeited. Belczak also was ordered to pay restitution of $572,775.32 to St. Thomas More.
"Father Belczak's crime was not an isolated incident or a momentary lapse of judgment, but an orchestrated scheme perpetrated over time to defraud the people he claimed to serve. It is a sad day when someone in a position of trust betrays that relationship, but it is important to ensure that no one is above the law,” McQuade said. “This sentence demonstrates that individuals will be held accountable when they steal significant sums of money that are entrusted to them.”
“The actions taken by Mr. Belczak represent a shocking betrayal of the faith and trust the public places in our clergy”, said Special Agent in Charge Gelios. “Secular or otherwise, the FBI is committed to the investigation of anyone who abuses their position for personal gain.”
This case was investigated by special agents of the Federal Bureau of Investigation and the Troy Police Department and prosecuted by Assistant U.S. Attorneys Frances Lee Carlson and Adriana Dydell.
Pocatello Man Sentenced for Meth DistributionRead the Press Release
POCATELLO – Monte G. Hoffman, 51, of Pocatello, Idaho, was sentenced today to 120 months in prison for possession with intent to distribute methamphetamine and destruction of government property, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Hoffman to serve eight years of supervised release, perform 200 hours of community service, and to pay $1,275 in restitution to the United States Probation Office. Hoffman was found guilty by a federal jury in Pocatello on September 2, 2015.
Evidence at trial showed that, on December 6, 2012, Hoffman was observed leaving a location in Pocatello known for drug activity. He was stopped by the police and found to be in possession of methamphetamine packaged for sale, as well as items used to distribute methamphetamine. Additionally, on March 8, 2015, while on pretrial release awaiting trial, Hoffman destroyed his electronic monitor and fled Idaho to Odessa, Texas, where he was subsequently arrested by the United States Marshals Service.
The case was the result of an investigation by the Idaho State Police and the United States Marshals Service.
Pocatello Man Sentenced for Fort Hall Casino TheftRead the Press Release
POCATELLO – Cory Hugues, 44, of Pocatello, Idaho, was sentenced today to three weekends in jail for theft of funds by an employee from a gaming establishment on Indian lands, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Hugues to pay $2,600 in restitution and serve three years of probation. Hugues pleaded guilty to the charge on August 26, 2015.
According to the plea agreement, Hugues was employed at the Fort Hall Sage Hill Casino as a uniformed security guard. On January 27, 2015, he was in the cash room at the casino with another employee. The other employee, a banker, counted the money in the safe. It was then Hugues’ duty to spin the dial on the safe to ensure it was locked. Hugues did a partial spin, which appeared to lock the safe, but did not actually do so. Surveillance video showed Hugues returning to the cash room later, opening the safe and reaching into it. He made a movement toward his left pocket area, then shut the safe, spun the dial and left the cash room. A cash count the following day showed $2,600 missing from the safe. Hugues was interviewed on a later date by law enforcement and he ultimately confessed to taking the $2,600 from the casino safe and using it to pay bills.
The case was investigated by the Fort Hall Police Department and the Pocatello Police Department.
Philadelphia Man Indicted for Impersonating A Federal OfficerRead the Press Release
PHILADELPHIA - Michael Alvaro, 37, of Philadelphia, PA, was charged today by Indictment with impersonation of a federal officer, impersonator conducting a search, and possession of unregistered firearms, announced United States Attorney Zane David Memeger. The indictment alleges that on or about November 17, 2014, Alvaro identified himself as a federal law enforcement officer of the Drug Enforcement Agency (DEA), and assisted in the detention of another person and search of that person’s vehicle. The indictment also alleges that on May 12, 2015, Alvaro identified himself as a federal law enforcement officer of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in order to gain access to a secured area of an Amtrak derailment. The indictment further alleges that Alvaro unlawfully possessed unregistered firearms.
If convicted the defendant faces a maximum possible sentence of 29 years in prison, possible fine, special assessment $500, up to three years of supervised release.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parkersburg man sentenced on Federal drug chargeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man was sentenced today in federal court in Charleston, West Virginia, to two years and six months in federal prison for distribution of heroin and crack, as well as two years for a violation of his supervised release, announced United States Attorney Booth Goodwin. The sentences are to run consecutively for a total of four years and six months. William C. Barber, II, 45, of Parkersburg, previously entered a guilty plea to the federal drug charge.
Barber admitted that on September 18, 2014, he sold heroin and crack to an informant working with the Parkersburg Narcotics Task Force. The drug deal took place outside of Barber’s residence in Parkersburg. At the time of the drug deal, Barber was on federal supervised release for possession with intent to distribute crack.
The Parkersburg Narcotics Task Force conducted the investigation. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
This case is being 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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Owner of Colorado Car Dealership Sentenced for Structuring and Money LaunderingRead the Press Release
DENVER – Raul Mendoza, age 51, of Denver, Colorado was sentenced on November 20, 2015 by U.S. District Court Judge R. Brooke Jackson to serve 48 months in federal prison, followed by three years of supervised release, the United States Attorney John Walsh announced, along with Special Agents in Charge of the IRS Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). Judge Jackson also ordered the forfeiture of 19 vehicles and currency in the amount of $5,277.16.
According to the indictment and plea agreement, beginning in February 2008 and continuing through May 2012, Raul Mendoza (Mendoza) and Isidro Noe Mendoza-Ortiz (Mendoza-Ortiz), conspired with each other and others to structure currency (the depositing of cash in amounts just under $10,000) by depositing transactions with the intent to evade the reporting requirements as required by law. Daily cash receipts from the business Chopeque Auto Sales, which is owned by Mendoza and located at 6011 Quebec Street, in Commerce City, were received at the business and structured into separate accounts at various banks to avoid the $10,000 reporting requirements. From February 26, 2008 through May 29, 2012, they structured over 700 deposits totaling $4,543,714.
As part of the conspiracy, on March 8, 2012, Mendoza and Julia Castillo-Caraveo (Castillo-Caraveo), knowingly caused Chopeque Auto Sales, a non-financial trade or business, to fail to file a Federal IRS From 8300, a report required by law for all currency transactions over $10,000 received by a business. Particularly, they sold a 2008 Chevrolet Silverado 1500 in exchange for $20,900 that was represented by undercover law enforcement officers to be the proceeds of a specified unlawful activity (drug distribution) and that they did so in order to conceal the nature of the specified unlawful activity and to avoid IRS Form 8300 reporting requirements.
Mendoza, along with his co-conspirators, conspired to conceal the nature and source of the specified unlawful activity and attempted to launder drug proceeds. Particularly, Chopeque Auto Sales sold automobiles to known drug dealers, prepared false documents relating to the sale of vehicles to known drug dealers, structured currency deposits to conceal the source, and falsely claimed to law enforcement authorities to be a valid lien holder of a seized vehicle in order to assist a known drug dealer in seeking the return of the vehicle.
“Money is the fuel that drives and motivates drug dealers, and for that reason, laundering drug money is a serious federal offense,” said U.S. Attorney John Walsh. “During the investigation of a drug trafficking organization, it was determined that this car dealer was laundering proceeds to hide illegal conduct. Thanks to banking laws, it was one key way law enforcement was able to identify the dealership’s involvement in the unlawful activity.”
“This is a great example of law enforcement agencies working together as we each brought our expertise to the table. As with this case, IRS CI Special Agents fill a unique role in the war on drugs; because of our financial background and expertise, we are able to follow the money trail and focus on money laundering activities and the seizure of assets derived from the drug proceeds,” said Steven A. Osborne, Acting Special Agent in Charge of IRS Criminal Investigation, Denver Field Office.
“Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) is committed to working with its federal, state and local partners to investigate crimes and bring those to justice who attempt to conceal and launder money to fund illegal activities, in this case a drug trafficking operation,” said David A. Thompson, special agent in charge of HSI Denver. “Dismantling drug trafficking operations is a critical aspect of our investigations and a vital step in combatting crime as a whole and making our communities safer.”
“Individuals who assist in or facilitate the illegal activities of drug traffickers will also be held accountable for their actions,” stated Barbra Roach, Special Agent in Charge of the Drug Enforcement Administration’s Denver Field Division. “DEA will target all levels of these criminal enterprises.”
This case was investigated by agents with IRS-Criminal Investigation, the Drug Enforcement Administration and Homeland Security Investigations with assistance from the Denver Police Department, Commerce City Police Department, Thornton Police Department, and the Colorado Department of Revenue – Auto Industry Division.
This case was prosecuted by Assistant U.S. Attorneys Celeste Rangel and Stephanie Podolak. The asset forfeiture was handled by Assistant U.S. Attorney Tonya Andrews.
Oregon's U.S. Attorney's Office Hires Suzanne Hayden to Further Federal Smart on Crime ProgramRead the Press Release
PORTLAND, Ore. – Acting U.S. Attorney Billy J. Williams announced today that Suzanne Hayden will join the U.S. Attorney’s Office for the District of Oregon in January, with the responsibility of implementing components of the District’s Smart on Crime Action Plan. The Smart on Crime Initiative is a nationwide effort created by the Department of Justice that directs federal prosecutors to focus on the most serious cases implicating substantial federal interests, while at the same time improving efforts to engage the community and to assist the recently incarcerated through supervised reentry programs. Hayden brings extensive community engagement and public safety experience to the position from her years as a Deputy District Attorney with Multnomah County, and most recently, as Executive Director of the Citizens Crime Commission. She has been a part of the Oregon statewide Justice Reinvestment effort, working with public safety leaders and community members to achieve improved public safety outcomes.
“In this time of limited resources, we are pursuing efforts to work ever smarter to make our communities safe, using data and research to make more informed decisions and strengthening our relationships with our law enforcement partners and the communities we serve,” said Mr. Williams. “With a renewed focus on reducing the disparate impacts of the criminal justice system, we will strengthen protections for vulnerable populations through enhanced prevention, strategic and targeted enforcement and reentry efforts.”
Ohio man sentenced to nearly 11 years for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Michael M. Stewart, 35, of Cleveland, Ohio, was sentenced today to 130 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Throughout 2014 and 2015, Stewart conspired with other individuals to possess and distribute cocaine in Marshall County, West Virginia. He pled guilty in September 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base.”
Assistant U.S. Attorney Robert McWilliams prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S District Judge Frederick P. Stamp, Jr. presided.
Norwalk Man Sentenced to 5 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRANDEN HUERTAS, also known as “Branden Holloway,” 34, formerly of Norwalk and last residing in Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
On May 13, 2014, HUERTAS was arrested by Bridgeport Police after he engaged officers in a foot pursuit. After HUERTAS was apprehended, officers located a black bag containing a loaded .22 caliber revolver that HUERTAS had discarded during the chase. At the time, HUERTAS was out on bond on state charges stemming from a series of arrests in 2014 for state domestic violence charges, including strangulation in the second degree, unlawful restraint and assault in the third degree. He was also subject to a protective order that requires he surrender or transfer all firearms and ammunition.
HUERTAS has a lengthy criminal history that dates to 1998.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. It is also illegal for a person who is subject to a protective order to possess firearms.
On May 28, 2015, HUERTAS pleaded guilty in federal court to one count of possession of a firearm by a convicted felon.
As a special condition of supervised release, Judge Arterton ordered HUERTAS to abide by the terms and conditions of the protective order issued in connection with the state charges, which is in effect through 2025. The protective order requires that HUERTAS refrain from any contact with the victim, and that he stay at least 100 yards away from her.
“Our Office will continue to prioritize the prosecution of individuals who illegally possess firearms – particularly those defendants who engage in acts of domestic violence or other violent offenses,” said U.S. Attorney Daly. “Working closely with our state and local partners, we aim to ensure that federal resources are used most effectively to support these investigations and to protect vulnerable victims and our communities.”
This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds in collaboration with the Domestic Violence prosecutors of the State’s Attorney’s Office, Fairfield Judicial District.
U.S. Attorney Daly noted that victims of domestic violence can call the National Domestic Violence Hotline at 800-799-SAFE (7233), or visit www.thehotline.org. Victims in Connecticut also can call the Connecticut Coalition Against Domestic Violence (CCADV) hotline at 888-774-2900 or (English) or 844-831-9200 (Español).
New York Man Sentenced to 37 Months in Prison for Credit Card ConpsiracyRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced Lonnie Shawn Hopson, 33, of Brooklyn, New York to 37 months in prison for a wire fraud conspiracy involving 453 gift cards containing stolen credit and debit card numbers, announced Jill Westmoreland Rose, United States Attorney for the Western District of North Carolina. Judge Whitney also ordered Hopson to serve two years of supervised release and to pay restitution totaling $1,083, which Hopson paid prior to his sentencing.
According to information contained in filed documents and statements made in court:
On July 21, 2013, Homeland Security Transportation Safety Administration (TSA) employees at Charlotte Douglas International Airport (Charlotte airport) discovered numerous mag-stripe payment cards while searching outbound checked luggage. Officers with the Charlotte Mecklenburg Police Department (CMPD) responding to the call recovered approximately 453 gift/prepaid mag-stripe payment cards in Hopson’s luggage, who was scheduled to board an outbound flight. Law enforcement also seized from Hopson $1,816 in cash and two driver’s licenses – a New Jersey driver’s license in the name of another person baring Hopson’s photo, and a New York driver’s license with Hopson’s name and photo. Subsequent investigation revealed that the New Jersey driver’s license was a counterfeit license and had a driver’s license number assigned to another person. Further investigation also revealed that the recovered gift/prepaid cards in Hopson’s luggage had been re-encoded with stolen credit or debit account numbers. Hopson pleaded guilty in May 2015 to one count of wire fraud conspiracy.
Hobson will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose thanked the United States Secret Service, TSA and CMPD for their assistance with this investigation. Assistant U.S. Attorney Tom O’Malley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Navajo Man Sentenced to Federal Prison for Conviction on Involuntary Manslaughter and Assault ChargesRead the Press Release
ALBUQUERQUE – Joshua Rakestraw, 25, an enrolled member of the Navajo Nation who resides in Farmington, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 48 months in prison followed by three years of supervised release for his conviction on involuntary manslaughter and assault charges.
Rakestraw was arrested on Nov. 3, 2014, on a criminal complaint charging him with killing a Navajo woman and assaulting a Navajo man, causing him to suffer serious bodily injury, on Oct. 28, 2014. The complaint alleged that Rakestraw committed these crimes while under the influence of alcohol in Indian Country in San Juan County, N.M. According to court filings, Rakestraw killed one victim and seriously injured the other victim by running over them with his vehicle at Morgan Lake, south of Kirtland, N.M. At the time, Rakestraw was under the influence of alcohol.
On June 19, 2015, Rakestraw pled guilty to a felony information charging him with involuntary manslaughter and assault resulting in serious bodily injury. In entering the guilty plea, Rakestraw admitted that on Oct. 28, 2014, at Morgan Lake he drove his truck forward, striking both victims as he drove his truck over them. One of the victims died and the other victim suffered several injuries including a dislocated hip and a broken rib.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Shammara Henderson prosecuted the case.
Morgantown woman sentenced for arsonRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sarah Beth Meckley, 33, of Morgantown, West Virginia, was sentenced today to 60 months in prison for arson, United States Attorney William J. Ihlenfeld, II, announced.
In May 2014, Meckley maliciously damaged and destroyed by means of fire and explosive materials the Chateau Royale Apartment Complex in Morgantown. She pled guilty in June 2015 to a criminal Information charging her with one count of “Arson of a Building Used in Interstate Commerce.”
As part of the sentence imposed today, Meckley was also ordered to pay restitution in the amoun of $1,246,124.36.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Fire Marshal investigated.
U.S. District Judge Irene M. Keeley presided.
Missouri Man Sentenced to 12+ Years for Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A Missouri man was sentenced Tuesday to 155 months in federal prison for robbing a bank in Overland Park, U.S. Attorney Barry Grissom said.
Allen J. Williams, 25, Kansas City, Mo., pleaded guilty to one count of armed robbery and one count of using a firearm during a robbery. In his plea, he admitted that on Feb. 27, 2014, he and two co-defendants robbed Inter-State Federal Savings at 8620 Metcalf in Overland Park. They entered the bank about noon and held employees at gunpoint before fleeing with stolen money.
Co-defendant Randy A. Cornelius, 22, Kansas City, Mo., was sentenced to 57 months, and Williams’ twin brother, Alvin J. Williams, 25, Kansas City, Mo., was sentenced to 114 months.
Grissom commended the Overland Park Police Department, the Kansas City, Mo., Police Department, the FBI and Assistant U.S. Attorney Tris Hunt for their work on the case.
Miami-Dade Resident Sentenced in Identity Theft Fraud SchemeRead the Press Release
A Miami-Dade resident was sentenced to 66 months in prison, followed by 3 years of supervised release for his participation in an identity theft fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Randy Normul Pierre, 29, of Miami, previously pled guilty to one count of possession of device-making equipment, in violation of Title 18, United States Code, Sections 1029(a)(4) and 2, and one count of aggravated identity theft, in violation of Title 18,United States Code, Sections 1028A(a)(1) and 2.
According to court documents, law enforcement agents executed a search warrant at the defendant’s residence. During the search, law enforcement agents found device-making equipment, including State of Florida seal adhesives and card stock, as well as the Social Security numbers of more than fifteen persons. In addition, law enforcement agents found a fake driver's license with Pierre's photograph, but in the name of another individual, and a credit or debit card in the name of the other individual.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican national sentenced to 13 months in prison for reentering the United States illegallyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Mexican national was sentenced to 13 months in prison for reentering the United States multiple times illegally.
Hugo Campuzano Cuellar, 37, of Villa de las Flores, Coacalco, Mexico, pleaded guilty before U.S. District Judge Richard T. Haik to one count of illegal reentry of a deported alien. According to the August 26, 2015 guilty plea, immigration officers encountered Cuellar in the St. Mary Parish jail on April 8, 2015. He admitted that he was a citizen of Mexico. He was previously removed from the United States on May 23, 2002, May 16, 2005 and May 7, 2009.
Homeland Security Investigations and the St. Mary Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Dominic A. Rossetti prosecuted the case.
Mexican Man Sentenced in Kansas for Laundering $4.7 Million in Drug FundsRead the Press Release
WICHITA, KAN. – A Mexican man was sentenced Tuesday to 70 months in federal prison for laundering more than $4.7 million in drug funds through his bank accounts in Kansas and elsewhere, U.S. Attorney Barry Grissom said. In addition, a money judgment of more than $4.7 million was entered against him.
Franz Wiebe Rempel, 44, Cuauhtemoc, Chihuahua, Mexico, pleaded guilty in U.S. District Court in Wichita to one count of money laundering. In his plea, he admitted that from 2009 through July 30, 2013, he laundered drug funds through bank accounts at the Bank of America in Wichita, as well as accounts at Wells Fargo and J.P. Morgan Chase.
In his plea, he admitted he provided his bank account numbers so that another conspirator could distribute the information to others. Rempel had an understanding with the conspirator that third parties would deposit cash into his bank accounts. The deposits would be less than $10,000 in an attempt to avoid federal currency reporting requirements. Once Rempel received the funds, he would transfer or move the money through the U.S. financial system at the other conspirator’s direction. Rempel crossed the border from his home in Mexico almost on a weekly basis in order to move funds. Ultimately, most of the money wound up in the other conspirator’s hands.
Rempel’s accounts received funds deposited from Kansas City, Kan.; Kansas City, Mo.; Oklahoma City; Des Moines; Amarillo, Texas; El Paso, Texas; Knoxville, Tenn., Nashville, Tenn., Memphis, Tenn.; Charlotte, N.C., Atlanta, Ga., and Albuquerque, N.M. Rempel did not know the identities of the people making the deposits but he knew the funds were being transferred for the purpose of paying for drugs.
Grissom commended the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.
Mexican Citizen Sentenced to 21 Months in Prison for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Miguel Salazar-Gomez, age 33, a Mexican citizen, was sentenced to 21 months in prison by United States District Court Judge Sylvia H. Rambo in Harrisburg for illegally re-entering the United States.
According to United States Attorney Peter Smith, Salazar-Gomez pleaded guilty in September 2015. At that time, he admitted to illegally re-entering the United States after having previously been deported in 2004, 2005 and 2014. Salazar was arrested in March of this year in Adams County and taken into the custody of Homeland Security Investigations.
The conviction is a result of an investigation conducted by Homeland Security Investigations and Assistant U.S. Attorney Chelsea Schinnour was assigned to prosecute the case.
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Man Pleads Guilty to Wichita Bank RobberyRead the Press Release
WICHITA, KAN. – A man pleaded guilty Tuesday to robbing a Wichita bank, U.S. Attorney Barry Grissom.
Frederick Aaron Cunningham, 45, Wichita, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Oct. 28, 2013, he robbed the Intrust Bank branch in the Dillons grocery store at 3211 S. Seneca. He also admitted he robbed the same bank on Oct. 9, 2013.
In the Oct. 28 robbery Cunningham gave the teller a note demanding money and then left the bank with stolen cash. Once outside the bank, he discarded a shirt worn during the robbery. Investigators used the results of DNA testing on the shirt to tie the crime to Cunningham.
Sentencing is set for Feb. 18. Both parties have agreed to recommend 10 years in federal prison.
Grissom commended Wichita Police Detective David Alexander, FBI Special Agent Ryan McDonald and Assistant U.S. Attorney David Lind for their work on the case.
Madison Woman Sentenced to 18 Months in Prison for Fraudulent Income Tax Refund SchemeRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Madison woman to 18 months in prison for a scheme to obtain fraudulent tax refunds, including one for $558,857, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge R. David Proctor sentenced ANGELIQUE B. HARRIS, 49, on one count each of theft of government property and money laundering as part of the tax-refund scheme. Harris pleaded guilty to the charges in July. She must pay $658,978 in restitution to the IRS and serve three years of supervised release after completing her prison sentence. Through a related civil action, Harris already has forfeited a 2013 Lexus ES350 luxury automobile worth about $45,000 that she bought with some of the criminal proceeds.
Harris, with the aid of others who were not named in the 2014 indictment against her, stole U.S. Treasury refunds between February 2013 and February 2014, according to her guilty plea. She also admitted to money laundering for using proceeds of a fraudulent October 2013 federal income tax refund of $558,857 to purchase the luxury Lexus from a Huntsville dealership. The IRS paid the refund on a tax return fraudulently filed in the name of a couple, identified in court documents as "P. and A.O." The refund was deposited into an account Harris opened at a Huntsville bank.
The IRS and FBI investigated the case, which Assistant U.S. Attorney Russell E. Penfield prosecuted.
Luzerne County Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man pleaded guilty today, before Senior U.S. District Court Judge James M. Munley in Scranton, to participating in a heroin trafficking conspiracy that operated in Luzerne County during February through October 2014.
According to United States Attorney Peter Smith, the defendant, Desmond Mercer, age 28, admitted to conspiring with others from Luzerne County, New Jersey, and Alabama, to distribute heroin to customers in the Luzerne County area. Mercer acknowledged distributing more than 700 grams of heroin and playing a leadership role in the conspiracy.
Mercer was indicted by a federal grand jury in Scranton in October 2014, as a result of an investigation by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kingston Police, Plymouth Police and the Luzerne County District Attorney’s Office.
Under the terms of the plea agreement, both the government and the defendant will recommend that the court impose a sentence of 14 years in prison. The defendant also agreed to the forfeiture to the United States of $15,887 in cash seized by agents and police during the investigation, and two vehicles. The plea agreement is subject to the approval of the Court.
Mercer is the fifth defendant connected to the conspiracy to plead guilty in the case.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for March 2, 2016. The Judge could sentence Mercer to up to 20 years in prison and a fine of $1 million. Mercer was ordered to be detained in prison pending sentencing.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case, along with Luzerne County Assistant District Attorney Jill Matthews who is a Special Assistant United States Attorney.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years 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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Love and Hip Hop Star Sentenced on Cocaine and Heroin Trafficking Charges; Forfeits Income from Reality Television Show and Other AssetsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Mendeecees Harris, 37, of the Bronx, NY, who pleaded guilty to conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and 500 grams or more of cocaine, was sentenced to 97 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that Harris participated in a conspiracy to distribute heroin and cocaine from 2005 until August 2012. From at least 2006 through 2008, while still in New York City, Harris participated in the distribution of heroin and cocaine with individuals who transported the drugs to the Rochester area and distributed them.
The defendant, who had been appearing as a cast member of the VH-1 reality television show Love and Hip Hop, New York, agreed to forfeit all of his income from that show. That income amounts, so far, to $170,755.20 in cash. In addition, Harris will forfeit a 2011 Audi R8 vehicle valued at $111,000.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, investigators with the Rochester Police Department, under the direction of Chief Michael Ciminelli, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office.
Kingsville Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Robert Wayne Collins, 62, of Kingsville, has pleaded guilty to possession of child pornography, announced U.S. Attorney Kenneth Magidson.
The court heard today that authorities, while using peer-to-peer software, were able to successfully download of various files containing child pornography from an IP address that was associated with Collins.
In January 2015, agents executed a search warrant at Collin’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 90 images and approximately 160 videos of child pornography. Collins admitted to using the peer-to-peer software to download child pornography.
U.S. Magistrate Judge Janice B. Ellington accepted the guilty plea today and set sentencing for March 10, 2016, before U.S. District Judge Nelva Gonzales Ramos. At that time, Collins faces up to 10 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Collins also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Collins was arrested on a bond revocation warrant in November 2015 and has been in custody since that time where he will remain pending his sentencing.
Homeland Security Investigations investigated with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jacksonville Man Sentenced to 121 Months for Receipt of Child PornographyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced JASON LEE LEVESQUE, 42, of Jacksonville, North Carolina, to 121 months imprisonment, followed by 5 years of supervised release.
JASON LEE LEVESQUE was named in an Indictment filed on March 3, 2015 charging him with receipt and possession of child pornography. On August 31, 2015, LEVESQUE pled guilty to receipt of child pornography.
On January 31, 2014, agents with the FBI Child Exploitation Task Force in Dallas, Texas successfully downloaded over 1,000 images of child pornography using peer to peer file sharing software from the defendant at his IP address. A subsequent search of computers and other devices from the defendant’s Jacksonville, North Carolina home revealed that LEVESQUE had downloaded over 1300 images of child pornography.
Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Carrie Randa represented the government.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Isleta Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Warren Chewiwi, 42, a member of Isleta Pueblo who resides in Bosque Farms, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a domestic assault by a habitual offender charge. Under the terms of his plea agreement, Chewiwi will be sentenced to 23 in months in federal prison followed by a term of supervised release to be determined by the court.
Chewiwi was arrested on Aug. 12, 2015, on an indictment charging him with domestic assault of an intimate partner by a habitual offender on Sept. 8, 2013, in Indian Country in Valencia County, N.M. According to the indictment, Chewiwi was charged as a habitual offender based on his two prior domestic violence convictions in Isleta Tribal Court. Isleta Tribal Court records reflect the Chewiwi’s prior convictions occurred in 2010 and 2013.
During today’s proceedings, Chewiwi pled guilty to the indictment and admitted that on Sept. 8, 2013, he assaulted the victim, his intimate partner, by grabbing her by the hair, jerking her around the room and hitting her with an open hand while he was under the influence of alcohol. He also acknowledged his two prior tribal court convictions.
Chewiwi remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Chewiwi will receive credit for time served in tribal custody on a related case.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Pueblo of Isleta Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Individual Sentenced to 89 Months in Prison for Bank FraudRead the Press Release
SAN JUAN, P.R. – Yesterday evening, Kelvin García-Oquendo was sentenced to 89 months in prison (seven years and five months), $114,000 of restitution and three years of supervised release by United States District Court Chief Judge Aida Delgado-Colón, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On August 28, 2013, García-Oquendo plead guilty of bank fraud, credit card fraud and identity theft. Between February and March of 2015, García-Oquendo, while on bond, was also charged with credit card fraud of approximately $41,111.62. For this case García-Oquendo pleaded guilty on August 17, 2015.
On May 22, 2013, a federal grand jury indicted 42 individuals as a result of an investigation led by the Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS), United States Postal Inspection Service (USPIS), the Puerto Rico Police Department (PRPD) and the Puerto Rico Treasury Department. The defendants were charged with conspiracy to commit bank fraud, bank fraud, aggravated identity theft and one count of a forfeiture allegation of $580,089.51. All the defendants pleaded guilty.
The USPIS and ICE-HSI conducted a Bank Fraud investigation involving 42 individuals from the Humacao, Puerto Rico area. Since 2010, the organization headed by named Kelvin García-Oquendo engaged in bank fraud, causing losses to several financial institutions in approximately $580,089.51. The intended loss amounts to approximately $1,205,834.15.
The organization had individuals performing different roles in furtherance of the conspiracy, such as: 1) leaders and organizers; 2) recruiters; 3) facilitators who would either open bank accounts or lend existing bank accounts for the deposit of false and fraudulent checks; 4) purchasers who would use ATM cards of the facilitators to purchase Money Gram Money Orders and Postal Money Orders with the proceeds of the bank fraud scheme; and 5) cashers who would go to different post offices to cash the money orders purchased by others.
“The egregious behavior of those who would exploit our banking system for personal and criminal gain will not be tolerated. We remain committed to investigating and apprehending those who cheat the system,” said US Attorney Rosa Emilia Rodríguez-Vélez. “We are committed to ensuring the integrity of the banking system and to prosecuting those who would undermine it for their personal gain.”
The case was prosecuted by Assistant United States Attorney Héctor Ramírez-Carbó.
Greenville Drug Trafficker SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever III sentenced ARTKES BENNETT, 36, of Greenville, North Carolina, to 192 months in prison followed by 6 years of supervised release for conspiracy to distribute and possess with the intent to distribute quantities of methamphetamine and heroin, distribution of methamphetamine, and possession with the intent to distribute heroin. BENNETT previously pled guilty to these charges on June 15, 2015.
The Greenville Regional Drug Task Force used an informant to buy methamphetamine from BENNETT on December 30, 2014. BENNETT was arrested on January 13, 2015, after 50 bags of heroin were found in his car. The investigation revealed that between June 2014 and January 2015, BENNETT was responsible for distributing approximately 80 grams of heroin, .95 grams of methamphetamine, and 907 grams of cocaine in Pitt County, North Carolina.
BENNETT faced an enhanced penalty due to his status as a career offender based on two prior convictions for selling cocaine and a prior conviction for possession with the intent to distribute heroin. On July 30, 2014, BENNETT was a participant in the Greenville Regional Offender Watch or “GROW” Up Program. This focused deterrence program is designed to assist repeat offenders in becoming more productive members of their communities by offering education opportunities, work training, and substance abuse treatment. Offenders are provided a notice of prohibited offenses and the severe consequences of committing such offenses.
The investigation of this case was conducted by the Greenville Regional Drug Task Force. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Government Contractor to Pay $1 Million to Settle Civil Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – DRS Technical Services, Inc. (DRS TSI), located in Herndon, has agreed to pay $1 million to settle a civil fraud case that claimed their employees engaged in labor mischarging resulting in a loss to the U.S. government of $544,000.
The allegations involved the overcharging of three U.S. Army contracts DRS TSI was working on in Kuwait, where 15 DRS TSI employees were directed to record more time for labor hours than was actually being worked. After discovering the improper conduct through its internal compliance program, DRS TSI made a voluntary disclosure to the U.S. government under the Contractor Business Ethics Compliance Program and Disclosure Rule, also known as the Federal Acquisition Regulations Mandatory Disclosure Rule. DRS TSI took corrective action, including disclosure of the conduct to the Department of Defense Office of Inspector General.
Following an investigation of the disclosure by the government, DRS TSI agreed to pay $1 million to resolve allegations under the civil False Claims Act, and other related civil statutory and common law remedies arising from the conduct. The False Claims Act makes it illegal for any person or entity to present a false or fraudulent claim to the United States for payment and/or to retain overpayments that were improperly received. The civil claims settled by DRS TSI are allegations only; there has been no determination of civil liability.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Army’s Criminal Investigation Command, and the Defense Criminal Investigative Service with assistance from the Defense Contract Audit Agency.
The matter was investigated by Assistant U.S. Attorney Richard Sponseller. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
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Georgia Man Sentenced to over 2½ Years for Failing to Register as a Sex OffenderRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that James Robert Underwood, 43, of Dalton, Georgia, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 33 months in prison for failing to register as a sex offender. Underwood pleaded guilty on June 24, 2015.
According to court records, Underwood was convicted in 1999 in Georgia for rape and other charges. He was sentenced to 10 years in prison and was released in 2009. The rape conviction required him to register under the Sex Offender Registration and Notification Act in Georgia and any other state where he established residency. In March 2012, Underwood established residency in Maine, but failed to register as required.
At the sentencing hearing, Judge Torresen noted that this was a particularly serious violation because while Underwood was not registered in Maine, he committed gross sexual assault. He was convicted for this crime in York County Superior Court and was sentenced in April 2013 to eight years in prison, with all but two years suspended.
Following Underwood’s sexual assault conviction, Georgia reclassified him as a "Dangerous Sexual Predator" under its State Sexual Offender Registry which subjects him to electronic monitoring for the rest of his life while residing in Georgia.The investigation was conducted by the U.S. Marshals Service, the Maine Probation and Parole Office and the Maine State Police, State Bureau of Identification.
Former Tax Preparer Sentenced in $20 Million Tax Fraud SchemeRead the Press Release
RICHMOND, Va. – Sean M. Weaver, 34 years old, of Alexandria, was sentenced today to 71 months in prison for mail fraud and money laundering. Weaver was also ordered to pay $20,427,688.03 in restitution to victims of the offense.
Weaver pleaded guilty on Aug. 19, 2015. According to court documents, Weaver was a member of the transaction tax practice group in the Arlington office of Ryan LLC, a tax services firm headquartered in Dallas, Texas. The transaction tax practice group specialized in submitting claims to state and local taxing authorities to obtain refunds of sales and/or use tax overpayments made by Ryan LLC’s corporate clients. Weaver managed a team of 10 to 15 employees and was responsible for submitting claims to the state taxing authorities on behalf of Ryan LLC’s clients. Between October 2011 and December 2014, Weaver submitted and caused to be submitted several false claims for sales and/or use tax refunds to the Virginia Department of Taxation and the Texas Comptroller of Public Accounts on behalf of two of Ryan LLC’s clients. In submitting the false claims, Weaver manipulated client transactional data and falsified invoices and other transactional records to inflate the amount of sales and/or use tax actually paid by the clients during certain transactions. As a result of the scheme, the state taxing authorities issued over $20 million in fraudulent refunds to Ryan LLC clients and Weaver received over $350,000 in personal bonus payments generated by the scheme. As part of the plea agreement, Weaver agreed to forfeit $250,480.09 seized by the United States as property involved in the offense and the value of his account with a peer-to-peer lending company.
Ryan LLC voluntarily reported Weaver’s actions to law enforcement and fully cooperated in the investigation.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division; Thomas M. Jankowski, Special Agent in Charge of IRS-Criminal Investigation’s (IRS-CI) Washington D.C. Field Office; and David Bowers, Acting Inspector in Charge of the Washington Division of the United States Postal Inspection Service (USPIS), made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Dominick S. Gerace and Michael S. Dry prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-139.
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Former President of Guinea Pleads Guilty to Bulk Cash Smuggling and False StatementsRead the Press Release
ALEXANDRIA, Va. – Sekouba Konate, 51, the former President of Guinea in West Africa and current General Commander of the Security Forces of the African Union, pleaded guilty today to charges of bulk cash smuggling and false statements.
In a statement of facts filed with the plea agreement, on June 15, 2013, General Konate arrived at Washington Dulles International Airport from Ethiopia and proceeded through Customs and Immigration illegally carrying thousands of dollars in undeclared cash. General Konate previously had applied for and received a G-4 visa to visit the United States based upon his employment with a foreign government. From in or about January 2010 to December 2010, General Konate served as the transitional President of Guinea following a military coup. From in or about December 2010 to the present, he has served as the General Commander of the Security Forces of the African Union—a military organization of 54 member states.
Upon his arrival at Dulles Airport, General Konate approached Primary Inspection and handed the assigned officer from Customs and Border Protection (CBP), among other things, a signed Customs Declaration form that falsely and willfully represented that he was not carrying over $10,000 in U.S. currency or its equivalent anywhere on his person or in his effects. When asked by the CBP Officer for a verbal confirmation, General Konate falsely and willfully repeated the same representation, even though he knew that he was carrying far in excess of $10,000, which was concealed on his person and in his luggage, in order to evade a currency-reporting requirement.
Following his referral to Secondary Inspection for further investigation, General Konate encountered two other CBP Officers and a Special Agent with Homeland Security Investigations. When he was asked again by the officers whether he was carrying over $10,000, General Konate this time responded that he was and amended his Customs Declaration form to reflect the $14,000 in U.S. currency that he was carrying in his wallet. In truth and in fact, General Konate knew that he was carrying significantly more currency at the time and willfully and materially made a false statement on his Customs Declaration form that misrepresented the actual amount of currency that he had concealed in his luggage. Based upon the inconsistency in his prior responses, CBP Officers conducted a preliminary search of General Konate’s luggage. The search revealed an additional $30,750 in U.S. currency, which was divided into several stacks of money and was concealed in various compartments of General Konate’s luggage.
Subsequent to the discovery of the $30,750, CBP Officers asked General Konate to complete a document, a FinCEN 105 form, that he knew would be filed with the Financial Crimes Enforcement Network of the U.S. Department of Treasury. General Konate completed and signed the FinCEN 105 form in the presence of the officers and represented that he was carrying a total of only $44,750 in currency, which accounted for the $14,000 in his wallet and the $30,750 that had been found during the search. When General Konate signed the FinCEN 105 form, he willfully and materially misrepresented the total amount of money that he had concealed in his luggage.
After General Konate signed the FinCEN 105 form, CBP Officers conducted a second and more thorough search of his luggage. During the search, officers discovered an additional $20,020 in U.S. currency, which again was divided into several stacks of money and was concealed in various compartments of General Konate’s luggage. Following the searches, General Konate was found in possession of a total of $64,770 in U.S. currency, in stark contrast to his initial representation on his Customs Declaration form that he was not carrying over $10,000. During his encounters with officers, General Konate repeatedly made statements that the questioning of him and accompanying searches were improper given his status as the former President of Guinea and current Commanding General of the African Union forces.
General Konate was indicted by a federal grand jury on May 7, 2015, and faces a maximum penalty of five years in prison when sentenced on Feb. 19, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Gene Rossi, Monika L. Moore, and Special Assistant U.S. Attorney Anna G. Kaminska are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-132.
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Former Military Contractor Sentenced to 12 Months in Prison for Paying Bribes to Army Officers during Iraq WarRead the Press Release
The former president of a defense contractor providing services to the U.S. military in Iraq was sentenced today to 12 months and one day in prison for his role in a scheme to pay more than $1.2 million in bribes to U.S. Army contracting personnel in exchange for being awarded lucrative defense contracts, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania.
U.S. District Judge Joel H. Slomsky in the Eastern District of Pennsylvania sentenced Justin W. Lee, 37, of Philadelphia, the former president of Lee Dynamics International (LDI), who pleaded guilty in July 2011 to one count of conspiracy to commit bribery and four substantive counts of bribery.
In connection with his guilty plea, Lee admitted that as the president of LDI and previously as an officer of American Logistics Services (ALS), a Kuwaiti company providing supplies to the U.S. military in Iraq, he paid multiple bribes in the form of cash, airline tickets, trips and hotel stays, among other things, to military contracting personnel in exchange for their agreement to take official action to award lucrative contracts to both LDI and ALS.
Lee’s father and co-defendant, George Lee, who was the CEO of both companies, was sentenced to 54 months in prison in July 2015 for one count of bribery. This marks the end of a long-running investigation, which began in 2006, that led to the conviction of seven other defendants, including several high-ranking contracting officers.
The U.S. Army Criminal Investigation Command, the Defense Criminal Investigative Service and the U.S. Department of Homeland Security – Immigration and Customs Enforcement investigated the case, and the Office of the Special Inspector General for Iraq Reconstruction, the FBI and the Internal Revenue Service previously contributed to the investigation. Trial Attorneys Richard B. Evans and John Keller of the Criminal Division’s Public Integrity Section and the U.S. Attorney’s Office of the Eastern District of Pennsylvania prosecuted the case. Mark W. Pletcher and Emily W. Allen of the U.S. Attorney’s Office of the Southern District of California previously provided substantial assistance.
Former East Haven Zoning Official Admits Pocketing Payments from ResidentsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK BIANCUR, JR., 41, of West Haven, waived his right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to seeking and receiving illegal payments while employed as a Zoning Enforcement Officer for the Town of East Haven.
According to court documents and statements made in court, BIANCUR was employed as the Town of East Haven’s Planning and Zoning Administrator/Zoning Enforcement Officer. In pleading guilty, BIANCUR admitted that he sought and received payments from at least five individuals in exchange for official acts he rendered as the Zoning Enforcement Officer.
In May 2015, a resident of East Haven contacted the East Haven Police Department and the FBI with information that he/she had been extorted by BIANCUR since approximately October 2012 and, as a result, had made cash payments to BIANCUR. On May 19, 2015, BIANCUR called the victim and informed the victim that BIANCUR had to inspect an addition to the victim’s residence. Although BIANCUR stated that he was “fighting” for the victim, he also required a payment of $200 or he would make the victim tear down the addition. On May 21, 2015, the victim engaged in a consensually-recorded meeting with BIANCUR at BIANCUR’s office in East Haven Town Hall. During the meeting, the victim gave BIANCUR $200 in cash, which BIANCUR put in his pocket.
In pleading guilty, BIANCUR also admitted that he sought and received $500 cash payments from two additional East Haven residents in order to resolve zoning violations.
BIANCUR pleaded guilty to one count of theft of honest services mail fraud, which carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
BIANCUR has been released on a $20,000 bond since his arrest on May 27, 2015.
Prior to his employment by the Town of East Haven, BIANCUR was employed by the City of West Haven and the City of Bridgeport.
This matter is being investigated by the Connecticut Public Corruption Task Force and the East Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
The Connecticut Public Corruption Task Force includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General. Citizens are encouraged to report corruption to the Task Force by calling 203-238-0505.
Former Chief Financial Officer/Senior Vice President of Paric Construction Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – BRIAN PALUCH, former Chief Financial Officer & Senior Vice President of PARIC Construction, was sentenced late yesterday to 38 months in prison on charges involving his scheme to use the company’s corporate funds to pay his own personal expenses during the period January 2010 through February 2014. In addition to the prison sentence, he was ordered to pay $393,659 restitution to PARIC and a $15,000 fine.
According to testimony presented at trial, Paluch used the PARIC issued American Express card to pay for personal expenses, including personal travel, dining, spa charges, electronics and personal gifts for family and friends. In order to conceal his scheme, Paluch submitted false and altered financial summaries of the monthly American Express statements by deleting and altering his own personal charges. On several occasions, Paluch forged the PARIC President’s signature on these false financial summaries as purported authorization for the payments. Additionally, as part of his employment at PARIC, Paluch was permitted to join the Sunset Country Club, and PARIC paid the monthly membership dues. Paluch, on behalf of PARIC, entered into an agreement with Sunset for the purchase of various types of apparel and golf items containing the PARIC corporate logo. Paluch created sham and inflated Sunset Country Club invoices to pay for personal items at the club unrelated to the legitimate business of PARIC. In his position as CFO, Paluch was responsible for calculating the annual bonuses for PARIC’s employees, including his own. As a further part of his scheme, Paluch inflated his base salary in calculating his own annual bonus for several years. Additionally, during summer, 2011, Paluch directed the payment of $5,000 in PARIC corporate funds to a St. Louis area law firm as an incentive for that law firm to hire his niece as a summer associate.
Paluch, Kirkwood, MO, was convicted of three counts of mail fraud last August. He appeared Monday for sentencing before United States District Judge Richard Webber.
This case was investigated by the Postal Inspection Service, the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorneys John Ware and Dianna Collins handled the case for the U.S. Attorney’s Office. The victim, PARIC Construction Company, provided assistance in the investigation.
Federal Prostitution Charges Brought Against Three Men in MontgomeryRead the Press Release
Montgomery, Alabama – Three Montgomery residents were indicted by a federal grand jury for their involvement in an interstate prostitution ring being operated out of an apartment in Montgomery, announced U.S. Attorney George Beck from the Middle District of Alabama. The three individuals indicted were: Bernabe Carbajal, 37; Andres Hernandez Gomez, 53; and Saul Garrido Eligio, 34.
According to court documents, Gomez and Eligio were a part of a ring that conspired to transport females across state-lines for the purpose of prostitution. The conspiracy took place from 2014 to October 2015 and included using females who were illegal aliens working as prostitutes at various locations, transporting the females from state to state, harboring the females in apartments being operated as brothels, coordinating meetings between the females and the males who paid for sexual services, and collecting payment for the sexual services provided by the females. Evidence shows that an apartment in Montgomery was maintained as a brothel for the females to stay in and engage in prostitution.
Specifically, it is alleged that on October 26, 2015 Carbajal enticed a female to travel with him to the apartment in Montgomery from Georgia to engage in prostitution.
After arriving at the apartment and while Gomez was supervising the brothel, the female engaged in prostitution and provided services to approximately 44 customers over a three-day period. Gomez’s duties at the brothel included, staying at the apartment, overseeing the operations of the brothel, supervising the prostitutes, screening the customers, collecting money from the customers, and reporting the number of customers.
Eligio participated in the conspiracy by traveling to the brothel to pick up money from Gomez and providing condoms to the females when needed.
If convicted, Carbajal faces a maximum sentence of ten years in prison for the transportation charge, a maximum sentence of twenty years in prison for the enticement charge, and a $250,000 fine for each charge. Gomez and Eligio each face a maximum sentence of five years in prison and a $250,000 fine for the conspiracy charge. All three defendants are in the custody of the United States Marshals Service pending trial.
The case against Gomez and Eligio is scheduled for trial in January 2016 before Chief United States District Judge W. Keith Watkins. Carbajal is presently in Georgia facing charges for conspiracy to engage in sex trafficking of a minor and conspiracy to transport a person in interstate commerce for the purpose of prostitution in the United States District Court for the Middle District of Georgia.
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This was a joint investigation with the Federal Bureau of Investigation and the Drug Enforcement Administration, with assistance from Homeland Security Investigations (HSI), High Intensity Drug Trafficking Area (HIDTA) Task Force, Alabama Law Enforcement Agency (ALEA), including the State Bureau of Investigations, Department of Public Safety, and the Fusion Center, the Alabama Attorney General’s Office, Montgomery Police Department, Autauga County Sheriff’s Office, Prattville Police Department, Elmore County Sheriff’s Office, Central Alabama Drug Task Force, Auburn Police Department, Millbrook Police Department, Dothan Police Department, Alabama National Guard Counterdrug Program, Albertville Police Department, Marshall County District Attorney’s Office, Marshall County Sheriff’s Office, Marshall County Against Domestic Violence Coalition, and the 19th Circuit District Attorney’s Office. Assistant U.S. Attorneys Jerusha T. Adams and Hollie Worley are prosecuting the case.
Evans Man Indicted for Selling Fentanyl That Resulted in A DeathRead 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 a federal grand jury has returned a one-count indictment charging John Haak, 34, of Evans, NY, with distribution of fentanyl causing death. The charge carries a mandatory minimum penalty of 20 years in prison, a maximum of life, and a fine of up $1,000,000.
"This case represents another in our ongoing effort to bring the full force of federal law against those drug traffickers who are willingly selling illegal and often deadly commodities," said U.S. Attorney Hochul.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on February 28, 2015, a Hamburg man died of a fentanyl overdose at his home. During the ensuing investigation, officers discovered a cellular telephone that belonged to the decedent. Text messages exchanged between the decedent and the defendant, in conjunction with an autopsy performed by the Erie County Medical Examiner, revealed that the decedent received fentanyl from Haak shortly before his body was discovered. The defendant also sent text messages warning the decedent to be careful with the substance that he sold to him.
Haak is in custody and will be arraigned at a later date before U.S. Magistrate Judge Jeremiah J. McCarthy.
The indictment is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Evans Police Department, under the direction of Chief Ernest P. Masullo.
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.
Edwin Tollinchi-Rodriguez Sentenced to 450 Months ImprisonmentRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Edwin Tollinchi-Rodriguez, age 30, of East Chicago, Indiana, was sentenced Tuesday, December 1, 2015, in federal court by Judge Rudy Lozano after his guilty plea of transporting a minor across state lines with intent to engage in criminal sexual activity.
Edwin Tollinchi-Rodriguez was sentenced to 450 months imprisonment and 20 years supervised release.
According to documents in the case, defendant Edwin Tollinchi-Rodriquez admitted in his guilty plea that on November 3, 2012, he knowingly transported an 11 year-old minor child, identified in public filings as “Jane Doe,” from the State of Indiana to the State of Illinois with intent that she engage in sexual activity that is prohibited by Illinois law, i.e., Criminal Sexual Assault under Illinois law.
At a hearing held on October 29, 2015, Jane Doe testified that the defendant began sexually abusing her when she was 8 years old and that he threatened to kill her, her family and himself if she disclosed the abuse. Jane Doe explained that she believed Defendant’s threats because he had been violent with her, her mother and her brother on previous occasions.
This case was the result of an investigation by the Federal Bureau of Investigation in coordination with East Chicago, Indiana and the Lansing, Illinois Police Departments. The case was prosecuted by Assistant United States Attorney Jill R. Koster.
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East Lyme Fisherman Pleads Guilty to Federal Tax Evasion ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that PETER TORRES, 47, of East Lyme, Connecticut, waived his right to indictment and pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to one count of attempted tax evasion.
According to court documents and statements made in court, from 2006 to 2011, TORRES failed to file tax returns and report to the Internal Revenue Service approximately $1.27 million in gross income generated through his work as a commercial fishing boat captain. In pleading guilty, TORRES admitted that he was issued Forms 1099 that documented the income paid to him for each tax year, but he failed to timely file his tax returns as required and report the income and tax due to the IRS. In his plea agreement, TORRES agreed that the tax loss for this period is between $250,000 and $550,000.
TORRES also admitted that, in an effort to conceal his income from the IRS, he negotiated checks he received as payment for his fishing services by depositing them in the bank and, on the same day, withdrawing cash or obtaining bank checks in varying amounts under $10,000.
Judge Hall scheduled sentencing for February 22, 2016, at which time TORRES faces a maximum term of imprisonment of five years and a fine of up to $250,000. As part of his guilty plea, TORRES acknowledged that he attempted to evade the assessment and payment of his taxes for the 2006 through 2011 tax years and has agreed to enter into a payment plan with the IRS to repay the back taxes and applicable penalties and interest.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Dietary Supplement Manufacturer Pleads Guilty to Criminal Contempt of CourtRead the Press Release
The Department of Justice announced today that a Livingston, Montana resident pleaded guilty to selling dietary supplements in violation of two court orders.
Toby McAdam, 57, pleaded guilty before U.S. District Judge Susan P. Watters in the District of Montana to one count of criminal contempt of court. McAdam was immediately sentenced to four months in prison. He was ordered to pay $80,000 in liquidated damages and $4,936.48 in attorney's fees.
“The Department of Justice will use all available tools to ensure that dietary supplement and drug manufacturers obey court orders,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As demonstrated by our recently announced dietary supplements sweep, the Consumer Protection Branch will aggressively pursue those who distribute these products in violation of the law.”
The criminal contempt action arose out of a prior civil action the Department filed in 2010 against McAdam, who was the owner and operator of Risingsun Health, based in Livingston. According to court documents, McAdam sold misbranded and adulterated dietary supplements and drugs that made unsupported claims to cure cancer, ADD/ADHD, epilepsy and intestinal parasites, among other things. McAdam agreed to close his business until the U.S. Food and Drug Administration (FDA) authorized him to return to business. No such authorization was given and McAdam was later held in civil contempt for violation of the consent decree. The Ninth Circuit Court of Appeals later upheld the order of civil contempt against McAdam.
The criminal contempt charges against McAdam alleged that he violated a 2010 court order and an order of civil contempt issued in 2013, which prohibit him from selling dietary supplements. McAdam admitted to continuing to sell both supplements and drugs and failed to close down his business and online sites.
Principal Deputy Assistant Attorney General Mizer commended the efforts of the U.S. Postal Inspection Service and FDA for the investigation. The matter was handled by Trial Attorney David Sullivan of the Department’s Consumer Protection Branch.
Day Care Operator Sentenced for Wire Fraud and Obstructing the IRSRead the Press Release
PHILADELPHIA - Deborah Cellucci, 45, of Mullica Hill, New Jersey, was sentenced today to one year and one day in prison for sending a false levy release that hampered the Internal Revenue Service's efforts to collect taxes owed by Cellucci's day care business, announced United States Attorney Zane David Memeger.
In 2013, Cellucci fell behind on her business taxes. An IRS revenue agent worked out a payment plan with Cellucci. Also, as part of its collection efforts, the IRS sent a Notice of Levy to an agency that paid subsidies to Cellucci’s day care under the subsidized child care program. That levy directed that the $28,103.20 subsidy slated for the day care be paid to the IRS. In June 2013, Cellucci faxed a false levy release from her home in New Jersey to the agency, in Philadelphia, in charge of paying the day care subsidy funds. As a result of the false levy release, a check for $28,103.20 that the agency had written to the U.S. Treasury was canceled, and a new check in the same amount was made out to the day care. Cellucci endorsed the check, and deposited the proceeds into her business account.
In addition to the prison term, United States District Judge Berle M. Schiller also ordered the defendant to pay $28,103.20 in restitution, and to serve a three-year period of supervised release.
The case was investigated by the Treasury Inspector General for Tax Administration and was prosecuted by Assistant United States Attorney Elizabeth Abrams.
Current and Former New York City Human Resources Administration Employees Each Charged with Corruption OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”), Catherine Leahy Scott, Acting Inspector General of the New York State Office of Welfare Inspector General (“State IG”), and Diego Rodriguez, Assistant Director-In-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of criminal charges against CHERISSE WATSON-JACKSON, a/k/a “Reesie,” a current New York City Human Resources Administration (“HRA”) supervisor, along with eleven others, with corruption offenses involving the theft of approximately $1.5 million from two public assistance programs. U.S. Attorney Bharara and Commissioner Peters simultaneously announced separate charges against PETRONILA PERALTA, a/k/a “Petra,” a former HRA employee, in a separate scheme involving the theft of approximately $600,000 more in public funds.
WATSON-JACKSON and PERALTA were arrested this morning in Queens, New York, and the Bronx, New York, respectively, and are scheduled to appear before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court later today. GERARD STOKES, VERNECKA PETERSEN-FOWLER, KEVIN WILLIAMS, BEVERLY LORD, JARON ANNUNZIATA, and BEVERLY FRANKLIN were also arrested this morning, and are scheduled to appear before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court later today. DERRICK WILLIAMS, a/k/a “Blood,” is in state custody on an unrelated charge, and is expected to appear in Manhattan federal court later this week. ISAAC ALLEN is in custody in Vermont on an unrelated charge, and is expected to appear in Manhattan federal court at a later date. COREY BROCK, a/k/a “Cee,” MAURICE CROMWELL, a/k/a “Reece,” and YESENIA DEPENA remain at large.
U.S. Attorney Preet Bharara said: “As alleged, one current and one former HRA employee abused their positions of trust as administrators of public funds to enrich themselves. Cherisse Watson-Jackson and Petronila Peralta allegedly diverted more than $2 million in public funds designed to assist the most needy in our community for their own personal use. I thank our partners in this investigation for their work in rooting out public corruption.”
Commissioner Mark G. Peters said: “During a season when we are reminded about hunger’s prevalence, these defendants are charged with shamelessly stealing the funds that assist in feeding that basic need. Vulnerabilities like those exposed in these arrests and in DOI’s Report breed corruption and must be dealt with swiftly to prevent further fraud of this magnitude from occurring. I thank our law enforcement partners and HRA for their partnership on these important cases.”
New York State Inspector General Catherine Leahy Scott said: “Cherisse Watson-Jackson was entrusted to provide government assistance to New York’s neediest families but instead abused that trust and her authority, steering $1.5 million in public funds to herself and her accomplices. Today’s arrests should send a clear message that my law enforcement partners and I will not tolerate the use of public office and public resources for criminal activity. We will investigate and bring to justice those who corrupt the system, and will continue to work together to find solutions to curtail systemic theft and abuse of public funds.”
FBI Assistant Director-In-Charge Diego Rodriguez said: “Watson-Jackson and Peralta are accused of abusing their positions to commit fraud through theft from a program designed to support the most in need. They not only allegedly took from the needy, but they conspired to defraud the tax-payers. Their actions jeopardized the foundation of the programs set up to help the community. This fraudulent scheme not only profited Watson-Jackson and Peralta, but it also lined the pockets of their co-conspirators. The FBI continues to work alongside our partners in the New York City Department of Investigation and New York State Office of Welfare Inspector General to ensure confidence in the government and its programs.”
According to the allegations contained in the Complaints[1] unsealed today in Manhattan federal court and publicly-available documents:
HRA is an agency of the City of New York responsible for administering various public assistance programs. Among other things, HRA provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among other things, administering the federally-funded Supplemental Nutrition Assistance Program (“SNAP”) (more commonly known as “food stamps”), the federally-funded Temporary Aid to Needy Families Program (“TANF”), and providing rental assistance to low-income families and individuals.
The Watson-Jackson Scheme
Since 1993, WATSON-JACKSON has worked at HRA, most recently as a supervisor in a job center in Queens, New York. In that capacity, she supervised a group of other supervisors who in turn were responsible for teams of employees who review and determine eligibility for public assistance clients. Since at least early 2012, and continuing until at least December 2013, WATSON-JACKSON abused her position by engaging in a scheme to defraud two of the public assistance programs that she was charged to help administer. The first of the two schemes involved WATSON-JACKSON fraudulently loading electronic benefit transfer (“EBT”) cards with funds from SNAP, which funds were then spent by co-conspirators throughout the New York City area, including by ALLEN, DERRICK WILLIAMS, BROCK, STOKES, and ANNUNZIATA. The second scheme involved WATSON-JACKSON fraudulently causing rental assistance checks to be mailed to co-conspirators who posed as “landlords” of low-income tenants. Co-conspirators, including CROMWELL, KEVIN WILLIAMS, ANNUNZIATA, FRANKLIN, and PETERSON cashed and/or assisted others to cash the fraudulently-obtained checks, including with the assistance of DEPENA, a teller at a check-cashing business who knowingly cashed more than 200 fraudulent checks in different names. The two schemes led by WATSON-JACKSON resulted in the loss of more than approximately $1.5 million in public funds.
The Peralta Scheme
Between 2005 and August 2014, PERALTA worked at HRA, most recently as a Job Opportunity Specialist in a different job center in Queens, New York. In that capacity, PERALTA was supposed to provide economic support and employment-related services to persons in need. Starting by approximately 2009, PERALTA abused her position by fraudulently issuing more than approximately 800 supplemental issuances to individuals who were not entitled to such payments. A “supplemental issuance” is a supplemental transmission of funds to a public assistance beneficiary who did not receive the amount of funds he or she was due previously. Between approximately 2009 and May 2011, PERALTA repeatedly issued such funds not to individuals who were entitled to them, but to co-conspirators, and took steps to seek to conceal her conduct, including by using the computer system log-in information of a former employee of HRA, rather than her own. The scheme led by PERALTA resulted in the loss of more than approximately $600,000 in public funds.
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WATSON-JACKSON, 44, of Queens, New York; CROMWELL, 39, of Staten Island, New York; ALLEN, 39, of Brooklyn, New York, DERRICK WILLIAMS, 34, of Queens, New York; BROCK, 35, of Queens, New York; STOKES, 32, of Queens, New York; PETERSEN-FOWLER, 44, of Brooklyn, New York; KEVIN WILLIAMS, 27, of Queens, New York; DEPENA, 24, of Brooklyn, New York; LORD, 53, of Queens, New York; ANNUNZIATA, 35, of Brooklyn, New York; and FRANKLIN, 37, of Queens, New York, are each charged in a complaint with conspiracy to commit mail and wire fraud, which carries a maximum penalty of 20 years in prison. WATSON-JACKSON, CROMWELL, DERRICK WILLIAMS, BROCK, STOKES, KEVIN WILLIAMS, and DEPENA are also each charged with aggravated identity theft, which carries a mandatory penalty of two years in prison, to be served consecutively to any penalty imposed for the mail and wire fraud conspiracy.
PERALTA, 51, of Bronx, New York, is charged in a separate complaint with conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison, and aggravated identity theft, which carries mandatory penalty of two years in prison, to be served consecutively to any penalty imposed for the wire fraud conspiracy.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
U.S. Attorney Bharara praised the work of DOI, the State IG, and the FBI, and noted that both investigations are ongoing.
These cases are being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal, Andrew D. Beaty, and Shawn G. Crowley are in charge of the prosecutions.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth below constitute only allegations, and every fact described should be treated as an allegation.
Conspirator in Counterfeit Credit Card Ring Sentenced to over 6 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Stanley Downey, age 49, formerly of New York, today to 74 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft, arising from a scheme to use of stolen credit and debit card information to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order requiring Downey to pay restitution of $126,318.99.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Chief Ross C. Buzzuro of the Ocean City Police Department; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Newport News Police Chief Richard W. Myers; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from at least January 1, 2012, through his arrest in August, 2013, Stanley Downey conspired with his brother William Downey, Michael Crew, Navee Diaz, Jason Evans, and others to manufacture counterfeit debit and credit cards bearing stolen and unauthorized credit and debit card account numbers then use the counterfeit cards to purchase goods and services.
Stanley Downey became involved in the scheme through others who knew the leader, Michael Crew, also known as “Black.” Black had an embossing machine and he made credit cards using altered gift cards and the credit card and debit card numbers of real people. The stolen card numbers were embossed on the gift cards, along with the name or alias of the person who would be using the cards.
Stanley Downey admitted that he primarily purchased counterfeit cards from Black, who provided the cards directly or through others, such as Navee Diaz and William Downey. Stanley Downey purchased a large number of cards and conducted a large number of transactions. For example, on January 2 and January 4, 2012, Stanley Downey and a co-conspirator used a counterfeit credit card to purchase approximately $5,738.70 in merchandise at a business in Baltimore County. Stanley and William Downey sometimes traveled together out of state to conduct transactions with the counterfeit credit cards when things got too “hot” in Maryland. Stanley Downey was traveling with his brother to Pittsburgh when the two of them were stopped by law enforcement outside Cumberland, Maryland on September 12, 2012. Stanley Downey provided a false name and a counterfeit driver’s license in that name to law enforcement. At the time of the stop, both William and Stanley Downey had over 60 counterfeit cards in their possession which were embossed with real account numbers belonging to victims and with the names “S Downey” and “W Downey.”
Stanley Downey also traveled with others to various places to use the counterfeit cards. For example, on October 10, 2012, Stanley Downey and a woman were arrested in Las Vegas and had 48 counterfeit credit cards in their possession, which they had been using to make purchases in Las Vegas and elsewhere. On August 13, 2103, Stanley Downey was arrested in New York for using counterfeit credit cards. He was convicted and began serving his sentence, but was subsequently transferred to Maryland to answer to these charges.
During his participation in the conspiracy, Stanley Downey and his co-conspirators obtained or attempted to obtain extensions of credit from financial institutions of between $400,000 and $1 million, using the financial account numbers of real people. More than 250 individuals and institutions were defrauded by the scheme.
Michael Crew, age 55, of Owings Mills, and Jason Evans, age 32, of Millsboro, Delaware previously pleaded guilty to the same charges and were sentenced to nine years in prison and four years in prison, respectively, and were each ordered to pay restitution of $126,318.99. Navee Diaz, a/k/a India, age 40, of Owings Mills, Maryland was sentenced to 76 months in prison, and was also ordered to pay restitution of $126,318.99. William Downey, age 43, of Gwynn Oak, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to five years in prison.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
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 the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service; Howard County, Baltimore City, Baltimore County, Howard County, Ocean City and Newport News Police Departments, HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Columbia Man Pleads Guilty to Drug-Trafficking ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute crack cocaine and powder cocaine in Boone County, Mo.
Malcolm Desean Redmon, also known as “Harp,” 32, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to participating in a conspiracy to distribute crack cocaine and powder cocaine in Boone County from November 2011 to August 2014. The court granted the defense attorney’s motion and ordered today’s plea agreement to be sealed.
Co-conspirators have admitted to distributing multiple kilograms of crack cocaine and powder cocaine, but the exact amount is disputed by Redmon and will be contested and determined at Redmon’s sentencing hearing.
Redmon is the 11th defendant to plead guilty in this case. Kenneth Scott, Sr., 47, and James Thomas Pittman, 42, both of Fulton, Mo.; Carl Douglass Simon, also known as “Lil Carl,” 28, and Teka Lynn Hayes, 51, both of Columbia; Ryan D. Wright, 39, of Springfield, Mo.; Vershawn Dejuan Edwards, 23, of Jefferson City, Mo.; and Guillermo Ortiz Perez, also known as “Youngster,” 25, a citizen of Mexico with no known address, have pleaded guilty and await sentencing. Rodney Wayne Arnold, also known as “Rodney O.,” 31, of Columbia, pleaded guilty and was sentenced to five years in federal prison without parole. William Alexander Hill, also known as “BJ,” 30, of Columbia, pleaded guilty and was sentenced to four years and five months in federal prison without parole. Courtnie Lea Goins, 26, of Springfield, pleaded guilty and was sentenced to four years of probation.
Under federal statutes, Redmon is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Drug Enforcement Administration and the Boone County, Mo., Prosecuting Attorney’s Office.
Chicago Man Sentenced on Fraud and Identity Theft ChargesRead the Press Release
St. Louis, MO – RODNEY TYLER was sentenced to 65 months in prison involving a bank fraud and identity theft scheme. Tyler and his associates used the identification of multiple individuals obtained from stolen credit cards, bank debit cards and state issued driver’s licenses to steal funds held in individual bank accounts.
According to court documents, as part of the scheme, which included fraudulent transactions at bank branches in Missouri, Illinois and Indiana, illegitimate and fraudulent driver’s licenses were created and used, along with stolen bank account information, to make unauthorized withdrawals of funds from identity theft victims’ personal bank accounts. Based out of Chicago, Illinois, Tyler and his associates traveled to bank branches where those individuals had and maintained personal bank accounts and then used the identities of multiple victims to negotiate bank counter withdrawals from the victim bank accounts. Tyler was arrested in Lincoln County, Missouri, on October 8, 2014, after he and another individual executed the scheme at a Troy, Missouri, branch of Bank of America and withdrew over $5,000 from an individual victim’s personal checking and savings accounts. Bank of America employees became suspicious during the course of the transactions and alerted local law enforcement, which led to Tyler’s arrest.
Tyler, Chicago, IL, pled guilty in August to one felony count of bank fraud and one felony count of aggravated identity theft. He appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the Postal Inspection Service and the Troy, Missouri, Police Department. Assistant United States Attorney Charles Birmingham handled the case for the U.S. Attorney’s Office.
Canadian Citizen Pleads Guilty to Smuggling Turtles from the United StatesRead the Press Release
A Canadian citizen pleaded guilty today to six counts of smuggling turtles, some of which were endangered, from the United States in violation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora, U.S. Attorney Barbara L. McQuade announced. Kai Xu, 27, of Windsor, Ontario pleaded guilty today before United States District Judge John Corbett O’Meara in Ann Arbor. At the plea hearing, Xu admitted that on six occasions in 2014 he entered the United States from Canada and traveled to Fed Ex and UPS facilities in the metro-Detroit area, where he retrieved packages that contained a variety of different species of live turtles. Xu then illegally smuggled the turtles out of the country using three methods. On some instances, Xu repackaged the turtles and shipped them directly to China, concealing the wildlife in snow boots. On one occasion, Xu taped the live turtles to his legs and groin (a total of 51 live turtles) and returned to Canada, smuggling the turtles in his pants to conceal them from customs officials. Finally, on the day of Xu’s arrest, he packaged over 1000 turtles into suitcases that he sent with a runner he had hired to fly directly from Detroit to Shanghai. The turtles were recovered by U.S. Fish and Wildlife special agents. They had been packaged into boots and cereal boxes and concealed within luggage. Each count for which Xu pleaded guilty to carries a maximum sentence of ten years in prison and/or a $250,000 fine. A sentencing date has been set for April 12, 2016 at noon in Ann Arbor, Michigan. This case was investigated by special agents of the U.S. Fish and Wildlife Service and Environment Canada.California Man Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
Nicholas Michael Teausant, 22, of Acampo, California, pleaded guilty today to attempting to provide material support or resources to a foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Benjamin B. Wagner of the Eastern District of California.
According to court documents, on March 17, 2014, Teausant was arrested en route to Canada, near the border, with the intent of continuing to travel to Syria to join the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. On March 26, 2014, Teausant was indicted on one count of attempting to provide material support or resources to a terrorist organization. He pleaded guilty to the single count in the indictment without a plea agreement.
“Nicholas Michael Teausant attempted to travel overseas to join ISIL and to provide material support to the terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism, and we are committed to stemming the flow of foreign fighters abroad and holding accountable those who attempt to provide material support to designated foreign terrorist organizations.”
“This case, like others in communities across the United States and around the world, is an example of how a young person from any place and any background might make the terrible decision to try and become part of a terrorist organization,” said U.S. Attorney Wagner. “Fortunately, the FBI intervened in this case before any harm could be inflicted upon innocent persons. We hope that this case will be a reminder to us all to stay vigilant and involved in the lives of our youth, and in particular with respect to the dangerous influences they may be subject to on the Internet where these organizations are very active.”
Teausant is scheduled to be sentenced by U.S. District Judge John A. Mendez of the Eastern District of California on March 8, 2016. Teausant faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal sentencing guidelines, which take into account a number of variables.
This case was the product of an investigation by the FBI, the Modesto, California, Police Department and the San Joaquin, California, Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorneys Jean M. Hobler and Jason Hitt of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section.
Buffalo Man Arrested, Charged with Cocaine ChargeRead 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 Dana Washington, 36, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute, and distribution of, crack cocaine. The charge carries a maximum of 30 years in prison and a $2,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, in January 2013, the defendant sold a half ounce of crack cocaine to a confidential source (CS) working with the Drug Enforcement Administration near Kensington and Fillmore Avenues in Buffalo. The complaint further states that Washington sold a second quantity of cocaine to the CS in February of 2013 at William Street and Michigan Avenue in Buffalo.
The defendant made an initial appearance today before U.S. Magistrate Judge Hugh B. Scott. He is being detained pending a detention hearing.
The complaint is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Bristol Businessman Sentenced to Serve 24 Months in Prison for Conspiracy to Distribute Synthetic DrugsRead the Press Release
GREENEVILLE, Tenn. – On Nov. 30, 2015, Daniel Guy Bickley, 56, of Bristol, Va., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 24 months in federal prison. Bickley was also ordered to serve three years of supervised release after his prison term and forfeit over $300,000 in assets.
Bickley was indicted in January 2014 and pleaded guilty in September 2014 to conspiracy to distribute controlled substance analogues intended for human consumption and conspiracy to commit money laundering. From approximately September 2010 through June 2012, he trafficked in synthetic drugs to include stimulants (“bath salts”) and cannabimimetic substances (“fake weed” and “incense”). He operated first from locations in southwest Virginia and then through a business called Cloud 9 Emporium in Bristol, Tenn. Bickley subsequently opened additional Cloud 9 locations in Johnson City and Mountain City, Tenn., before the stores were closed as the result of law enforcement action in March 2012. He was also involved in a fourth business, White Cloud Emporium, located in Kingsport, Tenn., and operated by another person. Bickley obtained the synthetic drugs from various sellers, but his primary suppliers were persons in the Largo/Holiday, Fla., area. During the less than two year period, he sold several million dollars’ worth of synthetic drugs and used the proceeds from the drug sales to purchase real and personal property in the names of other persons.
During the period in which Bickley was selling synthetic drugs, the Tri-Cities area experienced a public health crisis from the abuse of such drugs. Emergency rooms experience a surge of users of synthetic drugs, who exhibited extreme paranoia and psychoses; agitated and violent behavior; and elevated heart rates, blood pressure, and body temperatures. While the trafficking in illicit drugs such as cocaine, methamphetamine, and heroin creates substantial risks to the public, trafficking in synthetic drugs brought a uniquely dangerous situation to the community. Medical treatment for the users of such drugs is complicated because there are no available antidotes, such as for opioid overdoses, and physicians often do not know what substance is involved. Synthetic drug products are often targeted at teenagers and young adults with colorful packaging with cartoon characters. A study by the Center for Substance Abuse Research identified synthetic marijuana as the third most reported substance used by U.S. high school students after alcohol and marijuana.
Agencies involved in this investigation included the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Sullivan County Sheriff’s Office, Bristol Tennessee and Virginia Police Departments, Kingsport Police Department, Washington County Sheriff’s Office, Johnson City Police Department, and the First and Second Judicial District Drug Task Forces. Assistant U.S. Attorney Neil Smith represented the United States.
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