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Thursday 17 September 2015
Crownpoint Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Shiloh Y. McLemore, 36, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to assault charges.
McLemore was arrested on April 15, 2015, on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm in Indian Country. The complaint alleged that on April 8, 2015, law enforcement officers were called to the campus of the Navajo Technical University (NTU), where McLemore had allegedly assaulted and battered a woman and had then barricaded himself inside an apartment on the NTU campus. The complaint further alleged that when approached by a second victim, a Navajo man, McLemore took out a hand gun, loaded a full magazine of bullets into the handgun and chambered a bullet while threatening the victim to get away from him.
McLemore was subsequently indicted on May 12, 2015, and charged with assault of a male victim with a dangerous weapon with intent to do bodily harm, assault of a female victim with a dangerous weapon with intent to do bodily harm, and using and brandishing a firearm during a crime of violence. The crimes charged took place on April 8, 2015, in McKinley County, N.M.
During today’s proceedings, McLemore pled guilty to two counts of assault with a dangerous weapon. In entering the guilty plea, McLemore admitted that on April 8, 2015, in Indian Country in McKinley County, he assaulted a male victim with a firearm with intent to do bodily harm. He also admitted assaulting a female victim with a shod foot with intent to do bodily harm.
This case was investigated by the Crownpoint office of the Navajo Nation Department of Public Safety and is being prosecuted by Assistant U.S. Attorney Novaline Wilson.
The case was brought 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.
Colorado Tax Evader Convicted of Tax Crimes for Failing to Disclose More than $2 Million in Income to the IRSRead the Press Release
A federal jury sitting in Denver convicted a Grand Junction, Colorado, man yesterday of two counts of tax evasion, three counts of willful failure to file an individual federal income tax return and three counts of willful failure to file a corporate income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the evidence presented at trial, Timothy John Stubbs was the owner and president of National Rebate Fund Inc., based in Grand Junction, during 2005 through 2007. National Rebate Fund contracted with merchants of energy-efficient and other products to provide third-party rebates to retail customers throughout the United States. The company made more than $7 million in gross receipts between 2005 and 2007.
Stubbs earned more than $2 million in taxable income from National Rebate Fund during those same years. In an attempt to evade his taxes, Stubbs disguised personal income that he received from the National Rebate Fund by using business accounts to pay more than $700,000 in personal expenses during 2005, 2006 and 2007. During those years, Stubbs purchased real estate valued at more than $2.9 million in Grand Junction, Crested Butte, Colorado, and Kailua-Kona, Hawaii. He also acquired more than $370,000 in gold and silver in 2007. Between April 2004 and October 2007, Stubbs’ net worth increased by more than $3 million.
The evidence at trial established that Stubbs did not file his own tax returns or corporate tax returns on behalf of National Rebate Fund for 2005, 2006 and 2007, and has not filed an individual income tax return since 1992 or paid income taxes since 1993.
At sentencing, Stubbs faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000 for each count of tax evasion and a statutory maximum sentence of one year in prison and a maximum fine of $100,000 for each count of failure to file an income tax return. U.S. District Judge Christine M. Arguello of the District of Colorado set Stubbs’ sentencing for Dec. 17.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lori A. Hendrickson and Leslie Goemaat of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the District of Colorado for their substantial assistance.
Cochiti Pueblo Man Charged with Robbing Bank in Rio Rancho in July 2015Read the Press Release
ALBUQUERQUE – Marcelino Chalan, 27, of Cochiti Pueblo, N.M., appeared in federal court in Albuquerque, N.M., this morning on a criminal complaint charging him with bank robbery. During the hearing, the court found probable cause to support the charge in the criminal complaint.
Chalan was arrested yesterday on a criminal complaint charging him with robbing the Wells Fargo Bank branch inside the Albertson’s supermarket located at 3301 Southern Blvd. in Rio Rancho, N.M., on July 20, 2015. The complaint alleges that Chalan robbed the bank by handing a handwritten note with a robbery demand to a bank teller. The teller complied with Chalan’s written and verbal robbery demands and handed money over to Chalan. Chalan left the scene in a vehicle that appeared to be driven by a female. The investigation into Chalan began after the FBI received a tip identifying Chalan as the bank robber.
If convicted of the crime charged in the criminal complaint, Chalan faces a maximum penalty of 20 years in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the Rio Rancho Police Department, the Albuquerque, Police Department and the Cochiti Pueblo Tribal Police Department. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
Clarksburg woman convicted of heroin traffickingRead the Press Release
CLARKSBIRG, WEST VIRGINIA – Jeny Fury, 31, of Clarksburg, was convicted of heroin trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Fury sold heroin in Harrison County, West Virginia in February 2015. She pled guilty to one count of “Distribution of Heroin.” She faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge John S. Kaull presided.
Clarksburg man convicted of heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terry A. Cross, 33, of Clarksburg, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Cross sold heroin in Harrison County, West Virginia in October 2014. He pled guilty today to one count of “Distribution of Heroin – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge John S. Kaull presided.
Canadian Man Found Guilty of $3.5 Million Conspiracy to Defraud the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today that Kevin Cyster, 52, of Burlington, Ontario, Canada, was convicted after a six day jury trial of conspiracy, making a false claim against the United States, and illegally transferring stolen money in foreign commerce. The charges carry a maximum penalty of 30 years in prison and a $7,000,000 fine.Assistant U.S. Attorney John J. Field and Trial Attorneys Jeffrey A. McLellan and Thomas F. Koelbl, from U.S. Department of Justice Tax Division, who handled the prosecution of the case, stated that Cyster was a ringleader of a group of Canadian citizens who forged Internal Revenue Service (IRS) forms to falsely claim that almost $10,000,000 of income had been withheld on their behalf by various Canadian financial institutions. They arranged for the false forms to be filed electronically with the IRS by Ronald Brekke.
Subsequently, Cyster and his co-conspirators used the false filings to file false federal income tax returns seeking refunds based on the fictitious withholding amounts. Although the IRS identified some of the fraudulent returns, refunds totaling more than $3,500,000 were sent to Cyster and his co-conspirators before the scope of the fraud was detected.
Cyster was charged along with Renee Jarvis, Jonathan Neufeld, Christina Starkbaum, Daveanan Sookdeo, Jose Compuesto, and Timothy Johnson. Jarvis has been convicted. Neufeld and Starkbaum are deceased. Charges are pending against Sookdeo, Compuesto and Johnson. 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.
Ronald Brekke was convicted on federal fraud charges in Washington State.
The trial verdict is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Sentencing is scheduled for January 4, 2016 at 11:00 am before Chief U.S. District Judge Frank P. Geraci who presided over the trial of the case.
Canadian Man Convicted for Involvement in $3.5 Million Conspiracy to Defraud the United StatesRead the Press Release
An Ontario, Canada, man was convicted yesterday in the U.S. District Court for the Western District of New York on charges of conspiracy, making a false claim against the United States and illegally transferring stolen money in foreign commerce, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney William J. Hochul Jr. of the Western District of New York.
Kevin Cyster, 52, of Burlington, Ontario, was convicted by a federal jury after a six-day trial. According to court documents, Cyster was a ringleader of a group of Canadian citizens who forged Internal Revenue Service (IRS) forms to falsely claim that almost $10 million in income had been withheld on their behalf by various Canadian financial institutions. They arranged for Ronald Brekke to file the false forms electronically with the IRS.
Subsequently, Cyster and his co-conspirators used the false filings to file false federal income tax returns seeking refunds based on the fictitious withholding amounts. Although the IRS identified some of the fraudulent returns, refunds totaling more than $3.5 million were sent to Cyster and his co-conspirators before the scope of the fraud was detected.
Cyster was charged along with Renee Jarvis, Jonathan Neufeld, Christina Starkbaum, Daveanan Sookdeo, Jose Compuesto and Timothy Johnson. Jarvis has been convicted, Neufeld and Starkbaum are deceased, and charges are pending against Sookdeo, Compuesto and Johnson. Brekke was convicted on federal fraud charges in the state of Washington.
Sentencing is scheduled for Jan. 4, 2016, before Chief U.S. District Judge Frank P. Geraci Jr. of the Western District of New York, who also presided over the trial of the case. The charges carry a statutory maximum penalty of 30 years in prison and a $7 million fine.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Hochul thanked the special agents of IRS-Criminal Investigation, under the direction of Special Agent In Charge Shantelle P. Kitchen, who investigated the case, and Assistant U.S. Attorney John J. Field of the Western District of New York and Trial Attorneys Jeffrey A. McLellan and Thomas F. Koelbl of the Tax Division, who are prosecuting the case.
Buffalo Woman Charged with FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a four count indictment charging Tamara Ward, 39, of Buffalo, NY, with bank fraud and making a false statement on a loan application. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that according to the indictment, Ward applied for two separate automobile loans and in each instance provided false information. The defendant falsely represented on each of the applications that she was employed by the Internal Revenue Service, earning an annual salary of $50,000. Ward has never been employed by the IRS.
The indictment is the culmination of an investigation by Treasury Inspector General for Tax Administration (TIGTA), Office of Investigations, under the supervision of Special Agent in Charge, Robert E. O’Malley.
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.
Berkeley County man charged with oxycodone traffickingRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury has returned an indictment charging Earl Ferguson, 46, of Inwood, West Virginia, with prescription painkiller trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Ferguson sold oxycodone in Berkeley County, West Virginia throughout 2015. He is charged with one count of “Conspiracy to Distribute Oxycodone,” and three counts of “Distribution of Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000 on each of the four counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Krasinski is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, are leading the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Belding Man, Timothy Masters, Sentenced to 27 Years for Producing Child PornographyRead the Press Release
The eighth federal conviction in west Michigan for WEBCHEX, a West Michigan Based Child Exploitation Task Force
GRAND RAPIDS, MICHIGAN – Timothy Masters, 32, of Belding, Michigan, was sentenced to 27 years in federal prison for producing child pornography, announced U.S. Attorney Patrick A. Miles, Jr. He is the second Masters brother convicted and sentenced this year in federal court, and his case marks the eighth federal conviction and sentence in west Michigan for the task force that investigated the case.
The brothers were active collectors of child pornography and regularly emailed back and forth about their sexual interest in children. They escalated their criminal conduct to sexual assaults and produced their own child pornography that they shared with each other. Timothy Masters bragged to his brother that he groped several girls he knew, ages 10-14, during trips to an amusement park and in the girls’ homes. He took pornographic pictures of one of the girls while she slept. He was a friend of the family and was invited into the home. That child wrote a statement that her mother read tearfully at the sentencing hearing. The victim described how she has panic attacks in places that remind her of Timothy Masters and continues to experience significant emotional pain and fear.Timothy’s brother, Eric Masters, 28, pled guilty in federal court last year to producing child pornography of three other young girls, including the graphic sexual abuse of a toddler that is now the subject of Kent County criminal sexual conduct charges. He was sentenced in federal court in March 2015 to 50 years in prison. If he is convicted on the pending state criminal sexual conduct charges, the Kent County judge will determine whether the state and federal sentences will be served concurrently or consecutively.
In announcing the sentence, U.S. Judge Paul L. Maloney stated, “To say this is despicable is an understatement.” He noted that the sentences in child exploitation cases are “high for a reason because these victims have to live with this forever,” and “many never fully recover.” Judge Maloney recognized that Timothy Masters had no other criminal history, which “is not atypical in these cases.” “The defendant has got some deep, deep recesses,” the judge continued, and during the long sentence, Timothy Masters can try to help mental health professionals “in understanding how he got to this point.”
Timothy Masters was the eighth federal offender convicted and sentenced in west Michigan based on investigations led by a local task force called WEBCHEX, which stands for West Michigan Based Child Exploitation Task Force. WEBCHEX, launched in late 2013 under the leadership of the FBI in Grand Rapids, is staffed by officers and detectives from each of the following:- - Michigan State Police;
- - Allegan County Sheriff’s Office;
- - Ionia County Sheriff’s Office;
- - Kent County Sheriff’s Department;
- - Ottawa County Sheriff’s Office; and
- - Grand Rapids Police Department.
Other law enforcement entities have also worked closely with WEBCHEX, including the Michigan State Police Internet Crimes Against Children (ICAC) Task Force, the Kentwood Police Department, Holland Police Department, Muskegon County Sheriff’s Office, Muskegon Police Department, Walker Police Department, Wyoming Police Department, and. And WEBCHEX has facilitated collaboration with out-of-state law enforcement agencies from Colorado to Georgia. By working hand-in-hand with other law enforcement agencies and entities outside the Task Force, WEBCHEX enhances the collective law enforcement effort for everything from interviewing victims and executing residential search warrants to conducting computer forensic exams.
The Task Force is just one of the law enforcement entities that the U.S. Attorney’s Office for the Western District of Michigan works with to investigate and prosecute crimes against children. Other partner agencies for the U.S. Attorney’s Office include Homeland Security Investigations; the Michigan State Police ICAC Task Force; and other federal, state, and local law enforcement offices around the country.
In the eight WEBCHEX cases sentenced federally so far in the Western District of Michigan, the sentences range from 15 to 50 years, with an average of 26 years. A total of 11 child sexual abuse victims have been rescued in these cases alone. The cases include convictions for production and possession of child pornography, online coercion and enticement of a minor, and child sex trafficking. In addition to the Masters brothers, other defendants brought to justice through WEBCHEX investigations include: Joseph Arpin, who traveled from California to Allegan County to have sex with a 12-year-old he met online; Gary Hampton, who molested and photographed a teenage boy in his home in Grand Rapids; and Eddie Jackson, who sex trafficked three Muskegon teens in Grand Rapids.WEBCHEX investigations also led to charges in 17 additional cases in multiple state courts and other federal districts. For example, in the case against Clint Williamson from 2014 to 2015, the Task Force discovered that Williamson sent live video feed of a child’s sexual abuse to a couple in Georgia. Through the Task Force’s collaboration with state and federal authorities in Atlanta, the state of Georgia convicted the woman of child molestation, and a federal court in the Northern District of Georgia convicted the man for downloading thousands of images of child pornography. The woman received a sentence of life plus 10 years, and the man received a sentence of just over eight years.
U.S. Attorney Patrick Miles applauded the Task Force, calling it “a force multiplier for rescuing child victims and protecting other children all over west Michigan from being victimized. The hard work of the Task Force and the generosity of the participating agencies make our community that much safer.”Acting Special Agent in Charge of the FBI Detroit Division, John R. Shoup, said, “The whole purpose of the WEBCHEX Task Force is to protect children from sexual exploitation, abduction and trafficking, so to see this collaborative effort producing results in such a short amount of time is really gratifying, and lets us know that we are on the right track.”
“Victimized children are voiceless and often find themselves in hopeless situations,” stated Sergeant Chad McKersie and Sergeant Terry Dixon of the Grand Rapids Police Department. “We need to continue to break the silence to protect our children and rid our society of these awful predators. WEBCHEX’s work is the thundering roar of action on their behalf holding perpetrators accountable and providing hope to the silenced victims.”
For Detective First Lieutenant Mike Anderson, Michigan State Police 6th District Special Investigation Commander, “There is no higher calling for law enforcement than protecting our children. The Michigan State Police is excited to be part of the Task Force that has brought justice for eleven children thus far.”
The U.S. Attorney’s Office for the Western District of Michigan works closely with the WEBCHEX Task Force, among other agencies, as part of the Department of Justice’s Project Safe Childhood program. Federal, state, and local collaboration on these crimes is a priority for the U.S. Attorney’s Office to ensure the broadest reach and the highest level of effectiveness in protecting children. For more information about Project Safe Childhood in West Michigan, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Anti-Trafficking Symposium Brings Public Service Agencies TogetherRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced today, September 17, 2015, the Office hosted a symposium for law enforcement, prosecutors, schools, department of child services and others to educate officials about the signs of human trafficking and how to combat it.
“The Northern District of Indiana is fully engaged with our federal, state and local law enforcement partners along with governmental and non-governmental organizations in preventing, fighting and aggressively prosecuting all forms of human trafficking”, said U.S. Attorney Capp.
Human trafficking is the recruitment, harboring, transportation or procurement of a person for labor or services that are involuntary servitude, slavery or forced commercial sex acts. The Department of Justice and our Office have made a commitment to combat these horrific crimes by aggressively bringing traffickers to justice and providing assistance to victims.
The training today was a result of a combined effort between the Federal Bureau of Investigation, the Department of Homeland Security and the U.S. Attorney’s Office in Northern Indiana. The training provided the 100 plus registered attendees with the tools needed to identify, investigate and prosecute all forms of human trafficking.
If you have any information on possible human trafficking, please contact either the Polaris Project National Human Trafficking Hotline at 888-373-7888 or the Department of Homeland Security Tip line at1-866-DHS-2-ICE.
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Altamont Man Sentenced for Drug OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Ricky T. Garner, 47, of Altamont, Illinois, was sentenced to 41 months in federal prison on Wednesday, September 16, 2015, for Possession With Intent to Distribute Alpha-PVP.
"Alpha-PVP" is a prohibited controlled substance very similar to methamphetamine. It is chemically similar to methamphetamine and produces similar effects when ingested.
Garner pled guilty to the federal charge on June 2, 2015. At his change of plea hearing, the Government presented evidence that Garner was arrested near Beecher City, IL, on October 1, 2014. At the time of his arrest, Illinois State Police troopers found 70 grams (2 ½ ounces) of Alpha-PVP next to Garner in the truck which he was driving.
Garner has been continuously confined since his arrest last October.
Upon release from prison, Garner will also have to serve a term of 3 years on supervised release.
The investigation which resulted in Garner’s arrest and conviction was conducted by an Illinois State Police Swat Team based in Effingham, IL.
Garner’s case was assigned to Assistant United States Attorney Robert L. Garrison.
Albuquerque Man Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Pete Pasqual Chavez, 36, of Albuquerque, N.M., entered a not guilty plea today in federal court to a felon in possession of a firearm charge. Chavez was ordered detained pending trial based on judicial findings that he poses a risk of flight and a danger to the community.
Chavez was arrested yesterday on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Sept. 14, 2015, in Bernalillo County, N.M. The complaint alleges that on Sept. 14, 2015, officers of the Albuquerque Police Department (APD) responded to the La Quinta Inn on San Antonio Blvd. in Albuquerque after Chavez allegedly told hotel personnel that he had just shot a person who was breaking into his vehicle. Upon arrival the APD officers found a firearm under Chavez’s vehicle. Thereafter the officers executed search warrants for Chavez’s hotel room and vehicle. In the vehicle, the officers found a single projectile that was removed from the inside of the passenger door and a box of Perfecta .45 caliber ammunition. In Chavez’s hotel room the officers found four rounds of Perfecta .45 caliber ammunition. In the bushes outside Chavez’s room, the officers found a firearm loaded with ten rounds of Perfect .45 caliber ammunition.
Chavez was prohibited from possessing firearms or ammunition on Sept. 14, 2015, because he previously had been convicted of shooting at or from a motor vehicle, and attempted trafficking of a controlled substance with intent to distribute, and possession of a controlled substance in the Second Judicial District Court for the State of New Mexico. Chavez also had previously been convicted for using a telephone to facilitate a drug trafficking crime in the U.S. District Court for the District of New Mexico.
If convicted of the crime charged in the criminal complaint, Chavez faces a maximum penalty of ten years in federal prison. If the court determines that Chavez is an armed career criminal, he faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
*******media Advisory*******Read the Press Release
ALBUQUERQUE – Officials from the Department of Justice and Department of the Interior (Interior) will hold a press conference on THURSDAY, SEPTEMBER 17, 2015, to announce a landmark settlement with a nationwide class of tribes and tribal entities.
WHO: Principal Deputy Assistant Attorney General Benjamin C. Mizer -Head of the Justice Department’s Civil Division
U.S. Attorney Damon P. Martinez of the District of New Mexico
DOI Assistant Secretary – Indian Affairs Kevin K. Washburn
President David Jose of Ramah Navajo Chapter
President John Yellowbird Steele of Oglala Sioux Tribe
Governor Val R. Panteah Sr. of Pueblo of Zuni
Michael P. Gross, M.P. Gross Law Firm P.C.
C. Bryant Rogers, partner in VanAmberg, Rogers, Yepa, Abeita, Gomez and Works LLP
Lloyd B. Miller, partner in Sonosky Chambers Sachse Miller & Munson
WHEN: THURSDAY, SEPTEMBER 17, 2015 11:00 a.m. MDT / 1:00 p.m. EDT
WHERE: U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials (which must be worn around the neck or pinned to clothing at all times). Media may begin to arrive at 10:00 a.m. MDT. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
Wednesday 16 September 2015
Yonkers Business Owner Sentenced in White Plains Federal Court to Six Months for Engaging in Multimillion-Dollar Payroll Tax FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Special Agent-in-Charge of the New York Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that PATRICK WHITE was sentenced today by the United States District Judge Cathy Seibel to six months in prison on payroll tax fraud charges.
WHITE previously pled guilty to one count of failing to pay payroll taxes accumulated by his commercial construction business.
According to the Information previously filed in White Plains federal court: WHITE operates R & L Construction Inc., a Yonkers based contracting company. From 2005 through 2011, R&L Construction operated a scheme whereby some employee’s wages were properly reported, while others’ were not. In so doing, R & L Construction accumulated approximately $3,758,000 in unpaid payroll tax liabilities.
In addition to the prison term, WHITE was sentenced to one year of home confinement, and was ordered to liquidate certain real property to satisfy the $3,758,000 owed to the IRS.
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Mr. Bharara praised the outstanding efforts of IRS-CI. He also thanked U.S. Department of Justice’s Tax Division for its significant assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John P. Collins, Jr., is in charge of the prosecution.
Woodland Man Pleads Guilty to Bath Salts Distribution ConspiracyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Preston Brown, Sr., 51, of Woodland, Maine, pleaded guilty today in U.S. District Court to conspiracy to possess with intent to distribute and to distribute bath salts.
According to court records, between about June 2012 and June 2014, Brown conspired with others in Aroostook County to obtain and distribute bath salts. On multiple occasions, Brown ordered bath salts over the internet from China for personal use and to sell to other conspirators.
The defendant faces up to 20 years in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency with assistance from the Aroostook County Sheriff’s Office and the U.S. Postal Inspection Service.
Wickliffe, Kentucky, Resident Charged with Distribution of MethamphetamineRead the Press Release
LOUISVILLE, Ky. – A Wickliffe, Kentucky, resident was charged by grand jury indictment today, with five counts of distribution of methamphetamine, a controlled substance, announced United States Attorney John E. Kuhn, Jr.
Christopher Ford, 48, was arrested on August 26, 2015, and initially charged in a criminal complaint with distribution of methamphetamine between March 2015 and July 2015.
Today’s grand jury indictment alleges Ford conspired with others to distribute 500 grams or more of methamphetamine, a Schedule II controlled substance, between Match 1, 2015, and August 26, 2015. Further, the indictment alleges that Ford distributed a detectable amount of methamphetamine on four occasions including April 17th, May 15th, May 28th, and July 7th According to the indictment, all of the sales took place in Ballard County, Kentucky.
Ford remains in the custody of the U.S. Marshals service and his first appearance before a Magistrate Judge has not been scheduled.
If convicted at trial, Ford could be sentenced to any term from ten years in prison to up to and including a life sentence. Also, Ford could be ordered to forfeit property and pay a fine of no less than $14,000,000 and ordered to serve up to and including a life period of supervised release.
This case is being prosecuted by Assistant United States Attorney Seth Hancock, and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Paducah Police Department, the Ballard County Sheriff’s Department and the Kentucky State Police.
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The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
Violent Drug Trafficker Sentenced to 27 YearsRead the Press Release
PHILADELPHIA- Joseph Adens, 32, of Philadelphia, PA, was sentenced today to 27 years in prison for his involvement in two drug conspiracies, a money laundering conspiracy, and his possession and discharge of a firearm in furtherance of a drug trafficking crime. Adens pleaded guilty on May 8, 2015, after eight days of trial. In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered 10 years of supervised release, a fine of $4,000, and a $600 special assessment.
Adens shot co-conspirator Tasfa Payne, seven times at close range with a .45 caliber handgun, on June 13, 2011, after eleven kilograms of cocaine failed to arrive in Philadelphia from California. The shooting occurred in front of the Universal Bluford Elementary School, on the 1400 block of Alden Street, and forced the school to lockdown its students. Following the shooting, Adens continued to be involved with drug trafficking. Specifically, in March 2012, Adens moved to Woodland Hills, California, where he continued to facilitate the transportation of multiple kilograms of cocaine and hundreds of pounds of marijuana from California to Philadelphia for distribution. Adens also used multiple individuals’ bank accounts at financial institutions with branches in both Pennsylvania and California. Adens arranged for his drug proceeds to be deposited in Philadelphia and then withdrawn in California to be used to purchase additional drugs.
The case was investigated jointly by the Federal Bureau of Investigation and Homeland Security Investigations, with assistance provided by the Los Angeles International Airport Narcotics Task Force and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Karen S. Marston.
Vermont Gas Stations and Convenience Stores Take Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that in celebration of the 25th anniversary of the Americans with Disabilities Act (ADA) and in recognition of the work yet to be done to fully realize the goals of the ADA, Vermont state agencies, the U.S. Attorney’s Office for the District of Vermont, non-profits and the business community are collaborating to educate gas station and convenience store owners about their responsibilities under the ADA and Vermont’s Public Accommodations Act. Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity.
In an effort spearheaded by the Vermont Human Rights Commission (VHRC), the U.S. Attorney’s Office for the District of Vermont, the Department of Motor Vehicles, the Agency of Agriculture, the Agency of Natural Resources and Department of Aging and Independent Living joined forces with Disability Rights Vermont, Champlain Oil, the Vermont Retail & Grocers Association, the Vermont Petroleum Association and the American Petroleum Institute to distribute information through a variety of means to all of Vermont’s gas stations and convenience stores.
The goal of the campaign is to raise awareness about the specific requirements that gas stations have towards individuals with mobility impairments. Over 30,000 Vermonters have been issued a registration plate or parking card indicating some degree of mobility impairment.
In order to comply with the ADA and Vermont law, entities that sell gasoline must, among other things:
• pump gas for the individual with a plate or parking card, provided more than one staff person is on duty at the time;
• charge that individual the same self-service price available to patrons who pump their own gas;
• prominently display the international symbol of accessibility and provide a means for individuals with disabilities to communicate the need for assistance either through a call button on the fuel dispenser, signage with a telephone number to call and/or signage indicating that individuals with disabilities may honk their horn for assistance. Signage must comply with ADA font size requirements;While some gas stations do have proper signage and a means to request assistance with pumping fuel, many do not. For David Sagi, the Title II ADA Program & Service Coordinator for the State of Vermont, and a wheelchair user, the lack of compliance has real consequences. “I travel a lot with my job,” he said. “I’ve had to memorize where the remaining full service stations are because I can’t count on being able to get gasoline at a self-serve station.”
The Vermont Retail & Grocers Association (VRGA) and the Vermont Petroleum Association, which represent the industry, were on board from the beginning of the project. “This is really about equal rights and ensuring that all Vermonters have access to an essential service,” said Jim Harrison, executive director of the VRGA. “This is not a matter of hostility or indifference. Gas stations simply need information about their responsibilities.” In order to assist gas stations in complying, the VRGA/VPA have printed up decals that can be placed on gas station pumps and paid for a mailing to all gas stations with a Frequently Asked Questions flyer and information about how to obtain the decals.
“Our goal is to gain compliance through education,” said VHRC Executive Director Karen Richards. “Enforcement actions are time-consuming and less effective. If, however, after this push to educate providers, we find gas stations that are not in compliance, we may have to resort to enforcement. I’m hopeful that won’t be necessary and that gas stations will see this as an opportunity to be welcoming to a broader range of customers and visitors to the state.”
“This is an important civil rights issue in a rural state like Vermont – making sure that individuals with disabilities are able to access the services provided by gas stations and convenience stores. This collaborative effort seeks to educate businesses, encourage compliance, and improve accessibility all at the same time,” said Assistant United States Attorney Nikolas P. Kerest, who with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States.
The Vermont Human Rights Commission can be contacted at 800-416-2010 or at [email protected]. For further information on the ADA and its requirements see www.ada.gov.
U.S. Attorney's Office Reaches Agreement with Detroit Public Schools to Ensure Effective Communication for Parents Who Are Deaf and Hard of HearingRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached an agreement with the Detroit Public School District under the Americans with Disabilities Act (“ADA”), requiring the district to provide sign language interpreters and other aids and services to parents and guardians who are deaf or hard of hearing, U.S. Attorney Barbara L. McQuade announced today.
The settlement resolves a complaint that the school district failed to provide a sign language interpreter to the deaf parent of a student enrolled in the district’s family- centered Early Childhood Intervention program. The complainant alleged that the district denied her effective communication by refusing to provide her with a sign language interpreter at the program’s home and center-based teaching sessions so that she could actively participate in the education of her child.
The ADA requires that public entities, such as public schools, provide effective communication to all individuals with disabilities who seek to participate in or benefit from a school district’s services, programs or activities—not just students. This can include parent participation in parent-teacher conferences, student registration, meetings, ceremonies, open houses, and field trips.
Under the settlement, the Detroit Public School District agreed to modify its policies and train its staff to ensure that parents and guardians who are deaf are able to effectively communicate with school personnel, provide appropriate auxiliary aids and services at no cost, and designate an ADA coordinator for the district. The district also agreed to pay compensatory damages to the complainant.
“All parents want to make sure that their children are getting the best education possible, and parents with disabilities are no different,” McQuade said. “Effective communication between parents and schools is critical to a student’s success, and the law provides parents with disabilities the opportunity to fully participate in their children’s education at our public schools.” McQuade said. “We hope that this case will improve awareness of the responsibility all school districts have to effectively communicate with parents with disabilities.”
Those interested in finding out more about this settlement or the obligations of public entities under the ADA may call the U.S. Attorney’s Office Civil Rights Hotline at 313-226-9151, or send an email to [email protected].
Information is also available at the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or at www.ada.gov.
Twin Cities Landlords to Pay $130,000 to Resolve Alleged Section 8 Housing Assistance ViolationsRead the Press Release
United States Attorney Andrew M. Luger today announced a $130,000 settlement with RICHARD EDLICH, Cities Home Rentals, Inc., MDC 2000 Investments, Inc., and Rifive Investments, LLC (collectively the “Defendants”) to resolve allegations that the Defendants violated the False Claims Act by charging Section 8 tenants illegal side payments.
To qualify for federal subsidies, the Defendant landlords certified in their contracts with local housing authorities that they would not charge side payments to Section 8 tenants above the rental amount, which was determined by local housing authorities based in part on the tenants’ income. However, between August 2007 and July 2014, Defendants allegedly collected at least $60,000 in illegal side payments from sixteen Section 8 tenants.
The Department of Housing and Urban Development (HUD) provides federal funding for Section 8 (officially called the Housing Choice Voucher Program). Housing choice vouchers are administered by local housing authorities. The housing subsidy is paid to the landlord directly by the local housing authority on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. HUD prohibits Section 8 landlords from charging the tenant any additional payments to ensure that rent is affordable for tenants, and to prevent landlords from taking advantage of low-income tenants seeking affordable housing.
“The False Claims Act is an important tool to protect the integrity of the Housing Choice Voucher program, and to ensure that landlords receiving federal subsidies abide by their commitments to the federal government and to their tenants,” said Assistant U.S. Attorney Pamela Marentette, who represented the United States in this matter.
The settlement resolves allegations originally brought forward by one of the tenants, Meria Murray. Ms. Murray filed her suit under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and share in any recovery. According to Ms. Murray’s complaint, Defendants insisted that she pay over $5,000 in side payments between 2009 and 2011 for a property she rented in Minneapolis.
The settlement agreement requires the Defendants to pay $130,000 to the United States. Ms. Murray will receive $18,000 as her share of the recovery in this case.
The case was handled by the U.S. Attorney’s Office for the District of Minnesota, and investigated and supported by the U.S. Department of Housing and Urban Development-Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Meria T. Murray v. Richard Edlich, et. al. Case No.
13-sc-845 (JRT/JSM). The claims settled by this agreement are allegations only; there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three Defendants Indicted in Counterfeit Credit Card SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury returned a superseding indictment against three defendants on charges arising from a counterfeit credit card scheme:
Joseph R. Dominici, age 28, of Annapolis, Maryland,
Carlos M. Ledbetter, age 29, of District Heights, Maryland, and
Christina O. Price, age 22, of Bowie, Maryland.The superseding indictment was returned on September 15, 2015 adding Price as a defendant, and unsealed today upon her arrest.
The superseding indictment 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; Anne Arundel County Police Chief Tim Altomare; Anne Arundel County State’s Attorney Wes Adams; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
Dominici owned and operated JJ&M Enterprises, LLC, a business based in Annapolis. Ledbetter worked at JJ&M. Price was a server at a restaurant in Gambrills, Maryland.
According to the seven count superseding indictment, from at least July 2014 to February 9, 2015, Dominici obtained stolen or otherwise compromised credit card numbers from several sources, including black market “carding” websites where stolen credit card information can be purchased. Price used electronic devices known as skimmers to fraudulently obtain the credit card information of restaurant customers who paid by credit card. Price then provided this stolen customer information to Dominici for use in producing fraudulently re-encoded credit cards. Dominici and Ledbetter obtained stored value cards, used special equipment to encode the stolen account information onto stored value cards and then used the fraudulently re-encoded credit and stored value cards to buy merchandise.
The superseding indictment alleges that on February 9, 2015 Dominici possessed over 250 stolen or compromised credit card account numbers that he purchased from a black market “carding” website.
All of the defendants face a maximum sentence of 30 years in prison for conspiring to commit bank fraud; and a mandatory minimum sentence of two years in prison consecutive to any other sentence for aggravated identity theft. Dominici also faces a maximum sentence of 10 years in prison for access device fraud. Ledbetter and Price also face a maximum sentence of 30 years in prison for bank fraud. Price had her initial appearance and arraignment today and was released under the supervision of U.S. Pretrial Service. An initial appearance has not yet been scheduled for Dominici and Leadbetter on the superseding indictment. Ledbetter remains in federal custody, and Dominici was released under the supervision of U.S. Pretrial Services, following the return of the original indictment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Anne Arundel County Police Department, HSI Baltimore, Prince George’s County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers and Special Assistant U.S. Attorney Angela Tang, who are prosecuting the case.
Store Employee Sentenced for Defraudng Government Food Assistance ProgramRead the Press Release
HILADELPHIA – Mohammed Abuawada, 27, of Philadelphia, was sentenced yesterday afternoon to 18 months in prison for defrauding the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. The defendant pleaded guilty to conspiring to traffic in SNAP benefits and commit wire fraud; wire fraud; and aiding and abetting trafficking in SNAP benefits.
The defendant operated S&S Farmer’s Market, a retail grocery store, now defunct, that was located at 2722 Germantown Avenue in Philadelphia. At his guilty plea hearing, the defendant admitted that he knowingly assisted the store’s owners in trafficking in SNAP benefits, by withdrawing large sums of cash from the store’s bank accounts to fund the fraud. The defendant admitted that within a three-month period, he withdrew approximately $209,000 in cash in order to assist the fraud against USDA, which was carried out by purchasing SNAP benefits from store customers for cash, which is illegal.
In addition to the prison term, Senior U.S. District Court Judge John R. Padova ordered restitution of $209,000 to USDA, three years of supervised release to follow imprisonment, and directed that the defendant not own or operate any company that accepts SNAP benefits while on supervised release. He must surrender to begin serving his prison term on October 19, 2015.
The case was investigated by the United States Department of Agriculture Office of Inspector General and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Springfield Man Who Led Police on Chase Charged with Possession of Cocaine with Intent to DistributeRead the Press Release
Springfield, Ill. – A Springfield, Ill., man who led police on a chase through fields in southeastern Springfield on Sept. 1, 2015, has been charged by criminal complaint with possession of cocaine with intent to distribute and illegal possession of firearms. Terell Adetunji, (a-de-TUHN-jee) 33, of the 1600 block of E. Georgia St., made his initial appearance in federal court today before U.S. District Judge Sue E. Myerscough. Adetunji was ordered to remain detained in the custody of the U.S. Marshals Service.
According to the affidavit filed in support of the complaint, Adetunji possessed nearly two kilograms of cocaine, and at the time of his arrest, was under surveillance by law enforcement officers. When officers attempted to make contact with Adetunji in the Taco Bell parking lot on Toronto Rd., he allegedly drove away, hitting and damaging two unmarked police cars.
The affidavit alleges that Adetunji, who proceeded eastbound on Toronto Rd., at a high rate of speed, was swerving violently as he appeared to throw items from the car. Adetunji then drove through a soybean field and a cornfield before crossing the street into another cornfield. At that point, the vehicle appeared to be severely damaged and was no longer running. According to the affidavit, Adetunji exited the vehicle and ran eastbound through the cornfield on foot until officers apprehended him on the University of Illinois-Springfield campus. The Springfield Fire Department was called after the car caught fire and ignited the cornfield.
Following the arrest, officers obtained and executed search warrants for various properties associated with Adetunji. According to the affidavit, among the items recovered were approximately 1,700 grams of cocaine, four firearms and various types of ammunition.
The case is being investigated by the Drug Enforcement Administration, the Springfield Police Department, the Central Illinois Enforcement Group, and the Illinois State Police. Assistant U.S. Attorneys Matthew Weir and Crystal C. Correa are prosecuting the case.
If convicted, the statutory penalty for possession of more than 500 grams of cocaine with intent to distribute is a mandatory minimum of five years in prison up to 40 years; for possession of a firearm by an unlawful user of any controlled substance, the penalty is up to 10 years in prison.
Members of the public are reminded that a criminal complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Somerset County High School Teacher Charged with Online Enticement of A MinorRead the Press Release
NEWARK, N.J. – A Somerset County, N.J., man who works as a high school teacher was charged today with soliciting a minor victim online to produce images of sexually explicit conduct in exchange for money, U.S. Attorney Paul J. Fishman announced.
David N. Adams, 29, of Branchburg, New Jersey, was charged by complaint with one count of online enticement of a minor to engage in criminal sexual activity. He appeared this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. He was detained without bail; a bail hearing is scheduled for Sept. 16, 2015.
According to documents filed in this case and statements made in court:
From June 2014 through September 2014, Adams was a resident of Morris County and taught at Eisenhower Middle School in Roxbury, Morris County. During this time, he allegedly communicated with a 13-year-old victim who lived outside of New Jersey. Adams met the victim through an online gaming community and they communicated through text and video chats.
Adams allegedly offered to send payment to a child, identified in the complaint as “Minor Victim 1,” in exchange for sexually explicit images of the child, as well as live video chat sessions during which the victim engaged in sexually explicit conduct while defendant Adams watched and directed the victim’s actions. The victim did, in fact, send sexually explicit images to Adams and engage in sexually explicit conduct in live video chat sessions.
Adams is currently a teacher at Bridgewater-Raritan High School in Somerset County, New Jersey.
The charge of online enticement carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly in Newark; the Branchburg Police Department; and the Somerset County Prosecutor’s Office with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg and Special Assistant U.S. Attorney Erica D. Liu of the U.S. Attorney’s Office General Crimes Unit in Newark.
Seneca Nation of Indians to Receive More Than $500,000Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
WASHINGTON, DC. – The Department of Justice today announced 206 awards, totaling more than $97 million, to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The announcement was made at the 2015 Tribal Leader Briefing, sponsored by the National Congress of American Indians, and included Tribal leaders, Members of Congress and Administration officials.The Seneca Nation of Indians has received a $256,500 Justice Systems and Alcohol and Substance Abuse award and a $275,440 Violence Against Women Tribal Governments Program award.
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
“I am pleased that the Department of Justice has awarded this extremely significant amount of money to the Seneca Nation targeted specifically for use on important criminal justice and health issues,” said U.S. Attorney Hochul. “Our Office looks forward to continuing to work with the Seneca Nation in the months and days ahead.”
“For the past five years, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded hundreds of programs to better serve crime victims, promote community policing, and strengthen justice systems. This year’s awards also support efforts to reduce domestic and dating violence, and promote wellness and healing for tribal youth, among many other programs.”
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services, and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indians and Alaska Natives experience disproportionate rates of violence and victimization and often encounter significant obstacles to identifying and accessing culturally relevant services. CTAS funding helps tribes to develop and strengthen tribal justice systems’ response to crime, while significantly increasing programs and services available to them.
A listing of today’s awards is available at www.justice.gov/tribal/.Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
Sarasota Felon Sentenced to More Than Six Years for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Kevin Eugene McKnight (31, Sarasota) to six years and five months in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on July 8, 2015.
According to court documents, in October 2014, McKnight sold a handgun and oxycodone pills to an undercover detective from the Sarasota Police Department. Prior to this incident, McKnight had multiple prior felony convictions. As a result, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney Bentley, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida. It is also a part of ATF’s Frontline strategy to reduce violence in our communities.
Santa Fe Man Sentenced to 130 Months in Federal Prison for Crack Cocaine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Matthew J. Holmes, 31, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to 130 months in prison for his cocaine base trafficking conviction. Holmes will be on supervised release for four years after completing his term of imprisonment. The court also entered an order requiring Holmes to forfeit $4,146.00 found in Holmes’ possession when he was arrested.
Holmes was arrested on Feb. 24, 2015, and charged in a criminal complaint with possession of cocaine base, more commonly known as “crack” or “crack cocaine,” with intent to distribute. According to the complaint, on Feb. 24, 2014, the Santa Fe Police Department (SFPD) received information that Holmes had an outstanding state arrest warrant. Based on that information, SFPD officers initiated a traffic stop on Holmes’ vehicle. After a brief foot pursuit, the officers were able to apprehend Holmes. At the time of his arrest, Holmes possessed a distribution quantity of crack cocaine and drug paraphernalia. Holmes subsequently was indicted and charged with possession of crack cocaine with intent to distribute.
On Feb. 17, 2015, Holmes pled guilty to the indictment and admitted that on Feb. 24, 2014, he possessed 74.3 grams of crack cocaine in three plastic bags and $4,146.00 in cash. Holmes also admitted that he possessed the drugs with the intention of distributing it to others.
This case was investigated by the Santa Fe office of the FBI and the HIDTA Region III Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorneys David M. Walsh and Norman Cairns.
The HIDTA Region III Narcotics Task Force is comprised of officers from the New Mexico State Police, the Santa Fe County Sheriff’s Office and the Santa Fe Police Department. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Sacaton Man Sentenced to Federal Prison for Aggravated Sexual AssaultRead the Press Release
PHOENIX – On Sept. 15, 2015, Basil Edwin Williams, 20, of Sacaton, Ariz, a member of the Gila River Indian Tribe, was sentenced by U.S. District Judge Diane J. Humetewa to 102 months in prison, followed by a term of 15 years of supervised release. Williams pleaded guilty on July 15, 2015 to aggravated sexual assault.
On Sept. 4, 2014, within the Gila River Indian Community, Williams sexually assaulted the victim, also a member of the Gila River Indian Tribe, by choking and beating her to engage in a sexual act.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-1416-DJH
RELEASE NUMBER: 2015-077_Williams
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Russian National Pleads Guilty to Largest Known Data Breach Conspiracy Ever ChargedRead the Press Release
CAMDEN, N.J. – A Russian national today admitted his role in a worldwide hacking and data breach scheme that targeted major corporate networks, compromised more than 160 million credit card numbers and resulted in hundreds of millions of dollars in losses – the largest such scheme ever prosecuted in the United States.
The guilty plea was announced by New Jersey U.S. Attorney Paul J. Fishman, U.S. Secret Service Director Joseph P. Clancy and Assistant Attorney General Leslie Caldwell.
Dmitriy Smilianets, 32, of Moscow, pleaded guilty pleaded guilty before U.S. District Judge Jerome B. Simandle to Count Two of the second superseding indictment, charging him with conspiracy to commit wire fraud in a manner affecting a financial institution. Smilianets was arrested in the Netherlands on June 28, 2012 and was extradited to the District of New Jersey on Sept. 7, 2012.
According to documents filed in this case and statements made in court:
The five defendants each played specific roles in the scheme. Vladimir Drinkman, 34, of Syktyvkar, Russia, and Moscow and Alexandr Kalinin, 28, of St. Petersburg, Russia, specialized in penetrating network security and gaining access to the corporate victims’ systems. Drinkman and Roman Kotov, 34, of Moscow, also a hacker, specialized in mining the networks to steal valuable data. The hackers hid their activities using anonymous web-hosting services provided by Mikhail Rytikov, 28, of Odessa, Ukraine. Smilianets, 32, of Moscow, sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.
Drinkman and Kalinin were previously charged in New Jersey as “Hacker 1” and “Hacker 2” in a 2009 indictment charging Albert Gonzalez, 34, of Miami, Florida, in connection with five corporate data breaches – including the breach of Heartland Payment Systems Inc., which at the time was the largest ever reported. Gonzalez is currently serving 20 years in federal prison for those offenses. Kalinin is also charged in two federal indictments in the Southern District of New York: the first charges Kalinin in connection with hacking certain computer servers used by NASDAQ and the second charges him and another Russian hacker, Nikolay Nasenkov, with an international scheme to steal bank account information from U.S.-based financial institutions. Rytikov was previously charged in the Eastern District of Virginia with an unrelated scheme.
Drinkman and Smilianets were arrested at the request of the United States while traveling in the Netherlands on June 28, 2012. Drinkman pleaded guilty Sept. 15, 2015, to one count of conspiracy to commit unauthorized access of protected computers and one count of conspiracy to commit wire fraud to Kalinin, Kotov and Rytikov remain at large.
The Attacks
The five defendants penetrated the computer networks of several of the corporate victims and stole user names and passwords, means of identification, credit and debit card numbers and other corresponding personal identification information of cardholders. The conspirators allegedly acquired more than 160 million card numbers through hacking.
The initial entry was often gained using a “SQL injection attack.” SQL, or Structured Query Language, is a type of programing language designed to manage data held in particular types of databases; the hackers identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. Once the network was infiltrated, the defendants placed malicious code, or malware, in the system. This malware created a “back door,” leaving the system vulnerable and helping the defendants maintain access to the network. In some cases, the defendants lost access to the system due to companies’ security efforts, but were able to regain access through persistent attacks.
Instant message chats obtained by law enforcement revealed the defendants often targeted the victim companies for many months, waiting patiently as their efforts to bypass security were underway. The defendants had malware implanted in multiple companies’ servers for more than a year.
The defendants used their access to the networks to install “sniffers,” which were programs designed to identify, collect and steal data from the victims’ computer networks. The defendants then used an array of computers located around the world to store the stolen data and ultimately sell it to others.
Selling the Data
After acquiring the card numbers and associated data – which they referred to as “dumps” – the conspirators sold it to resellers around the world. The buyers then sold the dumps through online forums or directly to individuals and organizations. Smilianets was in charge of sales, selling the data only to trusted identity theft wholesalers. He charged approximately $10 for each stolen American credit card number and associated data, approximately $50 for each European credit card number and associated data and approximately $15 for each Canadian credit card number and associated data – offering discounted pricing to bulk and repeat customers. Ultimately, the end users encoded each dump onto the magnetic strip of a blank plastic card and cashed out the value of the dump by withdrawing money from ATMs or making purchases with the cards.
Covering Their Tracks
The defendants used a number of methods to conceal the scheme. Unlike traditional Internet service providers, Rytikov allowed his clients to hack with the knowledge he would never keep records of their online activities or share information with law enforcement.
Over the course of the conspiracy, the defendants communicated through private and encrypted communications channels to avoid detection. Fearing law enforcement would intercept even those communications, some of the conspirators attempted to meet in person.
To protect against detection by the victim companies, the defendants altered the settings on victim company networks to disable security mechanisms from logging their actions. The defendants also worked to evade existing protections by security software.
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As a result of the scheme, financial institutions, credit card companies and consumers suffered hundreds of millions in losses – including more than $300 million in losses reported by just three of the corporate victims – and immeasurable losses to the identity theft victims in costs associated with stolen identities and false charges. The charges and allegations contained in indictments against the remaining defendants are merely accusations and they are presumed innocent unless and until proven guilty.
The count of conspiracy to commit wire fraud in a manner affecting a financial institution carries a maximum penalty of 30 years in prison and a fine of the greater of $1 million or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 13, 2016.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director Clancy, and the Newark Division, under the direction of Special Agent in Charge Carl Agnelli, for the ongoing investigation leading to today’s guilty plea.
The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit, Trial Attorneys Richard Green of the Criminal Division’s Computer Crime and Intellectual Property Section, and Judith Friedman of the Office of International Affairs.
The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit, Trial Attorney Richard Green of the Criminal Division’s Computer Crime and Intellectual Property Section, and Judith Friedman of the Office of International Affairs.
U.S. Attorney Fishman also thanked public prosecutors with the Dutch Ministry of Security and Justice and the National High Tech Crime Unit of the Dutch National Police.
Roswell Man Sentenced to 84 Months in Prison for Violating Federal Drug Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Gabriel Gonzales, 26, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison followed by three years of supervised release for violating the federal drug trafficking and firearms laws.
Gonzales was arrested on Dec. 1, 2014, in Springer, N.M., on an indictment charging him with possession of methamphetamine with intent to distribute, using and carrying a firearm in relation to a drug trafficking crime, and unlawful possession of a firearm by a person who had been convicted of a misdemeanor crime of domestic violence. The charges alleged in the indictment took place on Dec. 2, 2013, in Chaves County, N.M. At the time of his arrest, Gonzales was prohibited from possessing firearms or ammunition because he previously had been convicted of the misdemeanor crime of domestic violence, that being battery against a household member.
On March 12, 2015, Gonzales pled guilty to Counts 1 and 3 of the indictment charging him with possession of methamphetamine with intent to distribute and possession of a firearm by a person convicted of a misdemeanor crime of domestic violence. In entering the guilty plea, Gonzales admitted that on Dec. 2, 2013, he was pulled over by law enforcement officers for a traffic violation, and during a consensual search of his vehicle, officers found approximately 34.6 grams of methamphetamine and a handgun inside the vehicle.
This case was investigated by the Las Cruces office of the DEA and the Roswell Police Department. Assistant U.S. Attorney Randy M. Castellano prosecuted the case.
Rochester Man Charged with Robbery and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Johnny Blackshell, Jr., 21, Rochester, NY, was arrested and charged by criminal complaint with Hobbs Act robbery, carrying and brandishing a firearm during a crime of violence, and being a felon in possession of a firearm. The charges carry a mandatory minimum penalty of seven years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorneys Brett A. Harvey and Douglas E. Gregory, who are handling the case, stated that according to the complaint, on August 4, 2015, the Rochester Police Department was called to the 7-Eleven on Lake Avenue for a report of an armed robbery. Officers interviewed the employee on duty who locked herself inside the store office until they arrived. They also reviewed store security videos and determined that two black males entered the store at approximately 12:50 a.m. One of the suspects pointed a handgun at the employee’s head and told her to open the drawer or he would “blow her head off.” The suspects left the store with approximately $150 in cash and some cigars.RPD evidence technicians subsequently processed the scene and recovered two fingerprints, one being a positive match to the defendant. In addition, the store employee picked Blackshell out of a photo lineup.
On August 24, 2015, RPD officers conducted a traffic stop of a gray/green Saturn on Route 490. The driver was identified as the defendant. Inside the car, officers recovered several clothing items that were determined to have been stolen from the Eastview Mall. A further search of the car revealed a handgun in the glove compartment. On August 25, 2015, the 7-Eleven employee who was robbed at gunpoint was shown photographs of the handgun found in the Saturn and stated to officers “I am sure that is the one that was pointed at me.”
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the Federal Bureau of Investigation, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
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.
Rio Rancho Man Sentenced to Federal Prison for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Terrance Rinaldi, 32, of Rio Rancho, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 36 months in prison for being a felon in possession of a firearm and ammunition. He will be on supervised release for three years after completing his prison sentence.
Rinaldi was arrested on Oct. 27, 2014, on an indictment charging him with unlawfully possessing a firearm and ammunition on Aug. 18, 2014, in Sandoval County, N.M. At the time Rinaldi was prohibited from possessing firearms or ammunition because he previously had been convicted of involuntary manslaughter and aggravated assault with a deadly weapon.
On May 14, 2015, Rinaldi pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rio Rancho Police Department. Assistant U.S. Attorney David M. Walsh prosecuted the case.
Plummer Man Sentenced for Killing EaglesRead the Press Release
COEUR D'ALENE - Adrian Q. Brown-Sonder, 24, of Plummer, Idaho, was sentenced yesterday to three years of probation and 300 hours of community service for violating the Bald and Golden Eagle Protection Act, U.S. Attorney Wendy J. Olson announced. Visiting U.S. District Judge Terry J. Hatter, Jr. also ordered Brown-Sonder to pay $4,000 in restitution and to forfeit all hunting permits, tags, stamps and licenses during the term of probation. Brown-Sonder pleaded guilty to the charge on September 15, 2015.
According to the plea agreement, a confidential informant contacted Coeur d’Alene Tribal Police, who in turn contacted the FBI and U.S. Fish and Wildlife Service, and stated that Brown-Sonder killed eagles and other migratory birds. Several witnesses were interviewed and explained that Brown-Sonder admitted to them that he had killed hawks and eagles. A search warrant at the defendant’s residence resulted in the discovery of a large number of eagle and hawk feathers, as well as a wide array of bird skulls and feet. Two bald eagles, two golden eagles, two rough-legged hawks, two red-tailed hawks, and two unspecified dark-morph hawks were identified by a morphology examination. Brown-Sonder is prohibited from hunting and having possession of dangerous weapons during the term of his probation.
The case was investigated by Coeur d’Alene Tribal Police, Federal Bureau of Investigation (FBI) and U.S. Fish and Wildlife Service (USFW).
Phonenixville Man Sentenced for Multi-Million Dollar Fraud SchemeRead the Press Release
PHILADELPHIA - Timothy D. Burns, (36), of Phoenixville, Pennsylvania, was sentenced today to 60 months in prison for mail fraud, wire fraud and loan fraud. He pleaded guilty to the charges on June 25, 2013. Burns was the sole owner of ESG Family Services, among other businesses. ESG Family Services provided bill paying and other personal services to clients. Burns induced many of his Family Services clients to add him as a signatory to their bank accounts. He also represented to clients and others that he could acquire shares of Facebook and other social media stock before their public offerings at favorable prices.
Between at least May 2007 and September 2012, Burns converted money entrusted to him by more than 50 clients and would-be investors for his personal gain. In 2011, without their knowledge or consent, Burns used his clients’ and investors’ money to buy a shore home in Avalon, New Jersey, for more than $4 million and to make a down payment on a commercial office building in Conshohocken, Pennsylvania. In 2012, he misrepresented to a bank that he had acquired stock, when he had not, to obtain a $6 million mortgage loan on the commercial office building. Burns used the fraudulently acquired shore home as collateral on a second loan of $1.5 million issued to him by the same bank to buy the office building.
In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered restitution of $11,038,923.60, a $400 special assessment, five years of supervised release, and forfeiture.
The case was investigated by the FBI and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Nancy E. Potts.
Peach Springs Woman Sentenced to 41 Months in Prison for AssaultRead the Press Release
PHOENIX – On Sept. 14, 2015, Grace Carol Dashee, 44, of Peach Springs, Ariz., a member of the Hualapai Indian Tribe, was sentenced by U.S. District Judge Neil V. Wake to 41 months in prison. Dashee pleaded guilty on May 19, 2015 to assault resulting in serious bodily injury.
On Nov. 7, 2014, within the Hualapai Indian Community, Dashee, who was intoxicated, became enraged with the victim, also a member of the Hualapai Indian Tribe, and struck him in the head with an axe. The victim sustained permanent and life threatening injuries as a result of the assault.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Hualapai Nation Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-8223-NVW
RELEASE NUMBER: 2015-078_Dashee
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Passaic County, New Jersey, Woman Admits Criminal Violation of HIPAARead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, woman today admitted her involvement in selling documents containing the individually identifiable health information of patients who received services at a New Jersey hospital, U.S. Attorney Paul J. Fishman announced.
Okeisha Carey, 48, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to an information charging her with wrongful disclosure of individually identifiable health information.
According to documents filed in this case and statements made in court:
From July 2010 through April 2011, Carey was employed as a billing supervisor for a hospital in Bergen County, New Jersey. During that time, she obtained patient records containing personally identifiable information, including patients’ names, dates of birth, Social Security numbers, and Medicare and Medicaid insurance information. She later transferred more than 250 patient records to another individual in exchange for cash payments.
The wrongful disclosure of individually identifiable health information charge carries a maximum sentence of 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 11, 2015.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
One New Orleans Man Pleads Guilty, Two Others Sentenced to over 10 Years in Prison in Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TREY MITCHELL, age 23, pled guilty today to attempted distribution of heroin, while co-defendants TERRELL DAVIS, age 24, and PERCY DEPRON, age 28, all of New Orleans, were sentenced for conspiracy to distribute heroin.
U.S. District Judge Kurt D. Engelhardt sentenced DAVIS to 151 months in prison, five years of supervised release following his prison term, and a $100 special assessment. DEPRON was sentenced to 121 months in prison, five years of supervised release, and a $100 special assessment.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration (DEA) New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by dealers to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that the defendants had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically one of the dealers would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then
visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
According to the record, in July 2013, a court-authorized wiretap of the ‘dope’ phone used by defendant TERENCE TAYLOR intercepted a series of calls relating to the sale of heroin to a person who had recently been through treatment for heroin addiction, and who died later that day as a result of a heroin overdose. Intercepted calls helped to demonstrate that TAYLOR negotiated this particular sale of heroin and that defendant MALCOLM BOLDEN subsequently met with the decedent to complete the sale. Judge Engelhardt sentenced BOLDEN to 25 years in prison in June.
Court documents also show that TAYLOR’s brother, TREY MITCHELL, had been selling heroin prior to MITCHELL’s state arrest and incarceration beginning in November 2012. At that point, TAYLOR took custody of a ‘dope’ phone formerly used by MITCHELL and began serving many of MITCHELL’s heroin customers. MITCHELL also attempted to direct heroin sales from jail through the use of cellular phones that had been smuggled into the jail. Some of these telephone calls over MITCHELL’s smuggled jail cell phone were intercepted during the court-authorized wiretap investigation of TAYLOR.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF, with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant U.S. Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
O'Fallon Man Sentenced to 15 Years in Prison for Being a Convicted Felon in Possession of a FirearmRead the Press Release
Kevin Lamar Smith, 28, of O’Fallon, Illinois, was sentenced to 15 years in federal prison for Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Following his prison sentence, Smith will be on federal supervised release for 5 years. Smith was also ordered to pay a $100 special assessment and a $150 fine. Smith has been in custody since his arrest on November 17, 2013.
"As I have demonstrated, prosecution of gun crimes is a priority of mine. Guns in the hands of convicted felons will only lead to an increase in the violence which plagues the citizens of Southern Illinois. I hope that this very long and well-deserved sentence will help send the message persons who defy the law by illegally possessing firearms – you will be caught and you will be sent to federal prison for a very, very long time." said United States Attorney Wigginton.
Court documents establish that on November 17, 2013, O’Fallon officers received a complaint that Smith was in possession of a firearm. Later that same day, O’Fallon officers located the vehicle being driven by Smith and attempted a traffic stop. While the officers were following Smith, who was traveling at a high rate of speed through a residential area, Smith told his passenger to throw the gun out of the vehicle. The firearm was recovered from the front yard of a homeowner and determined to be a fully loaded .45 caliber Hi-Point semiautomatic pistol. Smith and his passenger were arrested. The passenger of the vehicle was interviewed and stated that Smith had the Hi-Point semiautomatic firearm when he got into car and that he had seen Smith with the firearm on two other occasions. He also stated that Smith told him to throw the gun out of the vehicle while the police were following them.
Court documents further establish that Smith was a previously convicted felon, having been convicted in 2009 of residential burglary in the Circuit Court of St. Clair County, Illinois. That conviction, as well as other findings made by the Court mandated the 15 year sentence.
The investigation was conducted by the O’Fallon Police Department and successfully prosecuted by Assistant United States Attorney Ali Summers.
North Canton man charged with having images of child sexual abuseRead the Press Release
A grand jury returned a one-count indictment charging Earl C. Speedy, age 39, of North Canton, with distributing a visual depiction of a minor engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Canton Resident Agency. An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
New Port Richey Man Sentenced for Tax EvasionRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Steven Staltare to three years and one month in federal prison for tax evasion. The Court also ordered restitution to the Internal Revenue Service in the amount of $1,689,248. Staltare pleaded guilty on December 16, 2014.
According to court documents, Staltare was a securities broker and evaded paying taxes on income that he had earned during tax years 1999 through 2009. During the same time period that he failed to report and pay taxes on his income, he enjoyed a lavish lifestyle and diverted money from his business for gambling and personal expenses.
This case was investigated by the Internal Revenue Service-Criminal Investigation. It was being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Nevada Tribes Receive $2.7 Million in Grants from U.S. Department of JusticeRead the Press Release
LAS VEGAS, Nev. – Three northern Nevada Indian tribes will receive over $2.7 million in U.S. Department of Justice grants to assist them with public safety and community policing issues, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The awards to the Nevada tribes were included in a national announcement made today by the U.S. Department of Justice as part of its ongoing initiative to increase engagement, coordination and action on public safety in tribal communities. The announcement stated that 206 awards totaling more than $97 million were to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees.
“I am very pleased that Nevada tribes have received this much needed financial assistance from the Department of Justice,” said U.S. Attorney Bogden. “We will continue to consult with tribal leaders to make sure our resources are reaching those who need them and making the biggest positive impact possible.”
Nevada tribes receiving awards are the Fallon Paiute-Shoshone Tribe, Shoshone-Paiute Tribes of Duck Valley, and the Washoe Tribe of Nevada and California. The Fallon Paiute-Shoshone Tribe received one award totaling $188,695 for public safety and community policing. The Shoshone-Paiute Tribes of Duck Valley received two awards, one for $724,891 for alcohol and substance abuse and the other for $406,828 for violence against women. The Washoe Tribe of Nevada and California received two awards, one for $1 million for corrections and the other for $372,123 for its tribal youth program. More information on the awards is available at http://www.justice.gov/opa/pr/justice-department-awards-over-97-million-improve-public-safety-and-victim-services-american.
This week, U.S. Attorney Bogden has also been traveling to tribal lands and reservations in northern Nevada with two prosecutors from his office and a representative from the Bureau of Indian Affairs (BIA) to meet with Nevada tribal leaders on issues of concern, including public safety, investigations, victim advocacy, training, outreach, and violence against women. These annual meetings help federal prosecutors and investigators understand how we can better serve and support our tribal partners.
The tribal grant awards are made through DOJ’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. DOJ developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women and administered the first round of consolidated grants in September 2010. Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
Today’s award list is available at http://www.justice.gov/tribal/file/771691/download. A fact sheet on CTAS is available at /media/791821/dl?inline.
Navajo Man from Tseyatoh, N.M., Sentenced to Federal Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Almundo Cruz Singer, 28 was sentenced this afternoon in federal court in Albuquerque, N.M., to 75 months in prison followed by three years of supervised release for his involuntary manslaughter conviction.
Singer, an enrolled member of the Navajo Nation who resides in Tseyatoh, N.M., was arrested on Dec. 16, 2014, on a criminal complaint charging him with involuntary manslaughter. He subsequently was indicted on Jan. 8, 2015, and charged with killing a man on Dec. 9, 2014, while driving under the influence of alcohol on the Navajo Indian Reservation in McKinley County, N.M.
According to court filings, Singer killed a 36-year-old Navajo man who was walking across State Road 118 in Church Rock, N.M., by hitting him with his vehicle while driving under the influence of alcohol. Singer fled from the scene of the crash, but was arrested shortly thereafter in Gallup, N.M.
On April 17, 2015, Singer pled guilty to the indictment and admitted to killing the victim by driving recklessly while under the influence of alcohol. Singer also admitted that because of his intoxication, he was incapable of exercising clear judgment and a steady hand in operating a vehicle, and that he operated his vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Sarah Mease.
Nashville Woman Pleads Guilty to Filing False Tax ClaimRead the Press Release
Karen Liane Miller, 60, of Nashville, Tennessee, pleaded guilty yesterday to filing a false claim with the U.S. government, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to court documents and statements at the plea hearing, Miller admitted that from about August 2008 until about July 2009, she knowingly prepared and submitted multiple false federal income tax returns to the IRS on behalf of her friends, family and herself. The returns reported false amounts of taxable income on attached Forms 1099-OID (Original Issue Discount) and Forms 1099-A that Miller created and fraudulently represented to have been issued by financial institutions. The returns also reported identical or near-identical false amounts of federal income tax withheld from the fictitious income to generate claims for tax refunds that were significantly higher than what the taxpayers were entitled to receive. Miller filed 48 fraudulent tax returns that falsely claimed more than $19.8 million in refunds. The IRS issued $1,003,238 in refunds for eight of the 48 fraudulent returns.
The sentencing hearing is set for Jan. 8, 2016. Pursuant to the plea agreement, Miller faces a potential statutory maximum sentence of five years in prison, restitution in the amount of $1,003,328 to the IRS and a fine.
This case was investigated by the IRS-Criminal Investigation. Assistant U.S. Attorney Carrie Daughtrey and Trial Attorneys Alexander R. Effendi and Nathan P. Brooks of the Tax Division are prosecuting the case.
Monmouth County, New Jersey, Man Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, was arrested today for allegedly possessing and distributing sexually suggestive images of children, U.S. Attorney Paul J. Fishman announced.
Donald Haring, 60, of Long Branch, is charged by complaint with two counts of distributing child pornography and one count of possessing child pornography. He is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
In June 2014, an undercover agent downloaded files containing child sexual abuse from Haring’s computer via a peer-to-peer file sharing network. Haring was sharing more than 100 files of child sexual abuse.
In October 2014, Haring applied to an online child pornography forum covertly operated by undercover agents from the Department of Homeland Security (DHS) to identify individuals who transmit images of child sexual abuse. The online forum was maintained in a controlled environment in a manner that appeared to the prospective user that it was an exclusive and secure members-only website. The “terms of admission” for the online forum required prospective members to, among other things, upload images of child sexual abuse. Using the same IP address he used to share child pornography in June 2014, Haring uploaded eight images of child sexual abuse to satisfy the criteria for admission to the online forum.
In December 2014, DHS agents executed a federal search warrant at Haring’s home. A forensic examination of one of the devices seized from the home revealed more than 4,600 images and 75 movies of child sexual abuse.
Each count of distribution of child pornography carries a maximum penalty of 20 years in prison, a minimum penalty of five years in prison, and a fine of $250,000. The possession count carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Michael Scott Ponce Pleads Guilty to Being an Armed Career CriminalRead the Press Release
ALBUQUERQUE – Michael Scott Ponce, 38, of Albuquerque, N.M., pled guilty today in federal court to being an armed career criminal. Under the terms of his plea agreement, Ponce will be sentenced to 15 years in prison followed by a term of supervised release to be determined by the court. Ponce’s sentence was enhanced to a minimum of 15 years in prison, as opposed to a maximum ten years, based on his status as an armed career criminal.
The federal charge against Ponce was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD), and Bernalillo County Sheriff Manuel Gonzales, III.
U.S. Attorney Damon P. Martinez said that Ponce was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
“Violent, repeat offenders, such as Mr. Ponce, should be removed from Bernalillo County streets and held accountable for their actions. As part of the Worst of the Worst Initiative, Mr. Ponce's prosecution is an example of the successful collaboration amongst partnering agencies, and the resulting disposal of criminal cases in our community,” said 2nd Judicial District Attorney Kari E. Brandenburg.
Ponce was arrested on July 13, 2015, on a criminal complaint alleging that Ponce unlawfully possessed a firearm and ammunition on June 27, 2015, in Bernalillo County, N.M. According to the criminal complaint, on June 27, 2015, APD officers who responded to reports of a shooting in downtown Albuquerque observed a vehicle driven by Ponce as it struck another vehicle as Ponce attempted to flee from the area. APD officers pursued Ponce into a residential neighborhood where they took him into custody. As they were arresting Ponce, the officers observed a firearm cartridge in Ponce’s vehicle. Before they arrested Ponce, the APD officers also observed Ponce throw an item from his vehicle, and later found a semiautomatic pistol in the area where they had observed Ponce throw the object.
Ponce was subsequently indicted on July 30, 2015, and charged with being a felon in possession of a firearm and ammunition. According to court records, on June 27, 2015, Ponce was prohibited from possessing firearms or ammunition because he previously had been convicted of two counts of aggravated assaults with a deadly weapon, aggravated battery with a deadly weapon causing great bodily harm, and trafficking a controlled substance in the Second Judicial Court for the State of New Mexico in Bernalillo County. Ponce also had a prior federal conviction on a cocaine trafficking charge. At the time of his arrest on June 27, 2015, Ponce was on supervised release after having served a sentence of incarceration on the federal conviction.
During today’s proceedings, Ponce pled guilty to the indictment and admitted that on June 27, 2015, he possessed a semi-automatic pistol even though he was prohibited from possessing firearms and ammunition due to his prior felony convictions. Ponce remains in federal custody pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the ATF office in Albuquerque and APD with assistance from the Bernalillo County Sheriff’s Office and the Second Judicial District Attorney’s Office. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case.
Mexican Sentenced for Role in Large-Scale Heroin and Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A citizen of Mexico has been sentenced in federal court to 57 months of imprisonment with credit for time served, subject to deportation along with three years of supervised release on his conviction of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, and five kilograms or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Javier Ochoa, 53, of Mexico.
According to information presented to the court, Olufemi Young was a large-scale trafficker of cocaine and heroin in Pittsburgh, Pa. Following his release from federal prison in 2011, law enforcement collected evidence demonstrating that Young conspired to import multiple kilogram quantities of cocaine and heroin into the Western District of Pennsylvania, with these narcotics coming mainly from California and Arizona. In April of 2014, law enforcement seized nearly $260,000 in cash from individuals associated with Ochoa in Munhall, Pa. At that time, law enforcement also recovered an “owe sheet,” indicating that Young had purchased 10 kilograms of cocaine and two kilograms of heroin from his co-conspirators. In May of 2014, law enforcement seized another $660,000 in cash from Ochoa and Young in the Lawrenceville section of Pittsburgh. In the late summer of 2014, law enforcement began wiretap interceptions of telephones utilized by Young and a co-conspirator, and pursuant to those interceptions, law enforcement stopped a tractor trailer, being driven by another two co-conspirators, in Somerset County, Pa., on Nov. 10, 2014. This tractor trailer was carrying 19 kilograms of cocaine destined for Pittsburgh and multiple pallets of food bound for Wal-Mart. Young is presently serving a 10-year prison sentence for his involvement in this case.
Assistant United States Attorneys Eric Rosen, Ryan K. Hart and Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Internal Revenue Service, Federal Bureau of Investigation, Munhall Police Department, Allegheny County District Attorney’s Office, Pennsylvania Attorney General, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Ochoa.
Matthew P. Brookman selected as United States Magistrate JudgeRead the Press Release
PRESS RELEASE
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF INDIANA
Laura A. Briggs, Clerk
46 East Ohio Street
Room 105
Indianapolis, IN 46204
Matthew P. Brookman selected as United States Magistrate Judge
INDIANAPOLIS, Indiana (September 14, 2015): The Honorable Richard L. Young, Chief Judge of the United States District Court for the Southern District of Indiana, is pleased to announce the selection of Evansville attorney Matthew P. Brookman as United States Magistrate Judge. Mr. Brookman’s appointment will be made upon completion of a Federal Bureau of Investigation background check, a process that can take a few months. Once appointed, he will fill the vacancy created by the impending retirement of The Honorable William G. Hussmann, who has served the court since April 1988 and will retire on January 31, 2016.
The duties of Magistrate Judges in the Southern District of Indiana are demanding and wide-ranging, and Mr. Brookman will conduct preliminary proceedings in criminal cases; preside over trial and disposition of misdemeanor cases; conduct various pretrial matters and evidentiary proceedings on delegation from a district judge; and preside over trial and disposition of civil cases upon consent of the litigants. Mr. Brookman will primarily serve in the Evansville Division of the Southern District and travel to the other divisional offices of the Court to hold proceedings and conduct settlement conferences.
Mr. Brookman is presently employed by the Office of the United States Attorney for the Southern District of Indiana, where he serves as the Chief of the Office’s Drug and Violent Crime Unit and Lead Organized Crime and Drug Enforcement Task Force Attorney. He is also a member of the United States Attorney’s Executive Committee, Capital Case Coordinator for the Southern District of Indiana, and has served as a Chair and a Member from 2011 until 2015 of the United States Attorney’s various Hiring Committees. In 2010, Mr. Brookman received the Director’s Award from United States Attorney General Eric Holder, in Washington, DC, for superior performance as an Assistant United States Attorney, for his work on the United States v. Jarvis Brown, et al. quadruple homicide prosecution.
Mr. Brookman was born in St. Louis, Missouri and graduated with a Bachelor of Arts degree in 1990 from DePauw University, where he majored in economics and history. He also studied abroad at the University of Essex in Colchester, England. He obtained his law degree from the Washington University School of Law in May 1993, and was admitted to the bar in Missouri that same year. He has since been admitted to practice in numerous state and federal courts, including Indiana.
After spending the early part of his career in private practice and with the Office of the Prosecuting Attorney of Jefferson County, Missouri, Mr. Brookman joined the Office of the United States Attorney for the Western District of Missouri in 1999. Mr. Brookman then moved to the Office of the United States Attorney for the Southern District of Indiana in 2002, where he has remained. Additionally, Mr. Brookman is an adjunct professor at the University of Evansville and has also taught at the University of Southern Indiana, the United States Department of Justice National Advocacy Center, and the Southwest Indiana Law Enforcement Academy.
Mr. Brookman and his wife Michele live in Newburgh, Indiana with their three children: Katie, 18, a freshman at Indiana University; Adam, 14, a freshman at Castle High School; and Andrew, 7, a first grader at John H. Castle Elementary School.
Magistrate Judges are appointed by the Judges of the United States District Courts for terms of eight years, and are eligible for reappointment to successive terms.
Manhattan U.S. Attorney Announces Major Law Enforcement Action Taken Against Synthetic Cannabinoid Manufacturers and Distributors, Including Criminal Charges Against Ten Members of an International Trafficking OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York; William J. Bratton, Commissioner of the New York Police Department (“NYPD”); James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”); Glenn Sorge, Acting Special Agent in Charge Homeland Security Investigations (“HSI”) New York; Robert E. Perez, Director of the New York Field Office of Customs and Border Protection (“CBP”); and Joseph Fucito, Sheriff of the City of New York, announced today the unsealing of an Indictment against ten defendants involved in a massive drug distribution ring involving smokable synthetic cannabinoids (“SSC”). The scheme, which operated in all five boroughs of New York City, allegedly involved the unlawful importation of at least 100 kilograms of illegal synthetic compounds, an amount sufficient to produce approximately 1,300 kilograms of dried SSC product, or approximately 260,000 SSC retail packets. Coordinated with the unsealing of these criminal charges were searches of five processing facilities and warehouses used to process, store, and distribute SSC, as well as inspections of over 80 stores and bodegas around New York City.
Six of the defendants were arrested last night in connection with today’s charges. Those defendants will be presented in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn later this afternoon. MOHAMED ALMATHEEL, HAMID MOSHREF, ABDULLAH DEIBAN, AND FARIS NASSER KASSIM have not yet been arrested.
Manhattan U.S. Attorney Preet Bharara said: “Today, we launch an aggressive assault on a public health crisis that is reaching epidemic proportions: the scourge of dangerous new drugs that are killing people and sending thousands upon thousands to emergency rooms in New York City and around the country. Despite sometimes being called synthetic marijuana, this is not marijuana – it can have unpredictably severe and even lethal effects. What is more, use of these drugs aggravates all manner of other societal ills: it is entering prisons; preying on the homeless; burdening our hospitals and emergency rooms; fueling addiction; exacerbating mental health problems; and increasing risks to cops who must deal with people high on this poison. Synthetic cannabinoids are a deadly serious problem that demands an equally serious response. Today’s collective action is just the start of that response, one that will not end until this poison in a packet no longer endangers our community.”
NYPD Commissioner William Bratton said: “This is a scourge on our society, affecting the most disadvantaged neighborhoods and our most challenged citizens. It affects teenagers in public housing, homeless in the city shelter system, and it’s quite literally flooding our streets. This is marketed as synthetic marijuana, some call it K2. It is sold by the names of Galaxy, Diamond, Rush, and Matrix. But its real name is poison.”
DEA Special Agent in Charge James J. Hunt said: “There is a misconception that synthetic cannabinoids, known on the street as ‘synthetic marijuana,’” ‘K2,’ and ‘spice,’ are safe. Synthetic cannabinoids are anything but safe. They are a toxic cocktail of lethal chemicals created in China and then disguised as plant material here in New York City. Today’s arrests represent law enforcement’s efforts to combat this emerging public threat. By investigating and arresting manufacturers and distributors of ‘spice’ in the city, we have cut off the accessibility for those feeding the beast.”
HSI Acting Special Agent in Charge Glenn Sorge said: “Synthetic marijuana is rapidly becoming a huge problem in our communities. It is cheap and dangerous, especially for our teens and young adults. We are working side by side with our law enforcement partners both here and abroad to combat the sale of this hazardous alternative to marijuana.”
CBP Director Robert Perez said: “Today’s actions are a textbook example of the positive results that come with interagency collaboration among the law enforcement community. The expertise of our CBP Officers, specifically their targeting and analysis capabilities, resulted in a major investigation involving multiple agencies at all levels of government; the arrest of six individuals, and the takedown of a significant drug trafficking organization.”
Sheriff Joseph Fucito said: “The Sheriff’s Office stands ready with our partners in law enforcement in addressing the sudden proliferation of synthetic drugs sales in licensed retail locations throughout New York City. Owners and operators of licensed locations have an obligation to keep illegal and highly dangerous substances out of the hands of our children. The Sheriff’s Office is committed to agency partnerships and enforcement strategies that advance this goal.”
The following allegations are based on the unsealed Indictment, and other documents filed today in Manhattan federal court[1]:
This scheme involves the unlawful importation, manufacture, and distribution of massive quantities of smokable synthetic cannabinoids (“SSC”), containing controlled substances, throughout the New York City area and elsewhere. ABDULLAH DEIBAN, FARIS NASSER KASSIM, MORAD NASSER KASSIM, a/k/a “BK,” NAGEAB SAEED, WALIDE SAEED, MOHOMED SAEED, HAMID MOSHREF, MOHAMED SALEM, MOHAMED ALMATHEEL, and FIKRI NAGI, the defendants, were members of an international organization that trafficked, manufactured, and distributed SSC (the “Organization”).
DEIBAN, FARIS NASSER KASSIM, and MORAD NASSER KASSIM arranged the importation of illegal synthetic compounds in powdered form from China to the United States via commercial delivery services.After the chemical compounds arrived in the United States, DEIBAN, FARIS NASSER KASSIM, and MORAD NASSER KASSIM then arranged for them to be retrieved and transported to a processing facility, where they directed other co-conspirators to mix the illegal synthetic compounds with chemical solvents including acetone and/or flavoring additives and to spray the resulting liquid mixture onto tea leaves. DEIBAN, FARIS NASSER KASSIM, and MORAD NASSER KASSIM also organized and supervised the processing facility located on Light Street in the Bronx, New York, where co-conspirators acting under their direction bundled the resulting dried SSC product into retail packets bearing colorful logos and brand names and arranged for the transfer of bulk quantities of the SSC retail packets to warehouses controlled by wholesale distributors.The SSC retail packets were sold under names such as “AK-47,” “Blue Caution,” “Green Giant,” “Geeked Up,” “Psycho,” “Red Eye,” and “Black Extreme,” each containing between approximately three and six grams of product, and sometimes marked “not for human consumption,” or “potpourri.” The illegal SSC retail packets were sold to individual customers for approximately $5 per packet.
NAGEAB SAEED, WALIDE SAEED, and MOHOMED SAEED were among the Organization’s wholesale distributors.NAGEAB SAEED, WALIDE SAEED, and MOHOMED SAEED were responsible for coordinating the distribution of the retail SSC packets to more than 70 retail locations located within the five boroughs of New York City.NAGEAB SAEED, WALIDE SAEED, and MOHOMED SAEED purchased bulk quantities of retail SSC packets from the Organization’s manufacturers, prepared them for delivery, and organized their distribution to retail sellers by directing the Organization’s transporters.
AMID MOSHREF, MOHAMED SALEM, and MOHAMED ALMATHEEL were among the Organization’s transporters.MOSHREF, SALEM, and ALMATHEEL were responsible for moving bulk quantities of SSC retail packets from warehouses controlled by NAGEAB SAEED, WALIDE SAEED, and MOHOMED SAEED to retail sellers throughout New York City.FIKRI NAGI, the defendant, was one of the Organization’s retail sellers.NAGI ordered large quantities of SSC retail packets from NAGEAB SAEED, WALIDE SAEED, and MOHOMED SAEED for resale at retail locations.
Between September 2014 and September 2015, the Organization imported at least 100 kilograms of illegal synthetic compounds, an amount sufficient to produce approximately 1,300 kilograms of dried SSC product, or approximately 260,000 SSC retail packets.
SSC are widely accessible because they are inexpensive and commonly sold at otherwise legitimate retail locations.The colorful logos used on the SSC retail packets and the flavors used, such as lime, strawberry, and blueberry, make SSC attractive to teenagers and young adults. Physical effects of SSC include agitation, rapid heart rate, confusion, dizziness, nausea and vomiting, paranoia, panic attacks, and acute kidney injury.In addition, SSC products have inconsistent potencies, often containing more than one synthetic compound, and are sometimes laced with other toxic chemicals.In a recent two-month period, use of SSC resulted in 2,300 emergency room visits in New York State.Nationally, calls to poison centers in the United States related to synthetic cannabinoid use between January and May 2015 increased 229% over the same period in 2014.
Charts identifying each defendant, the charges, and the maximum penalties are attached to this release. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge. The case is assigned to U.S. District Judge Thomas Griesa.
U.S. Attorney Preet Bharara thanked the DEA, the NYPD, HSI, CBP, and the Office of the Sheriff of the City of New York for their work in the year-long investigation, which he noted is ongoing. The DEA’s New York Organized Crime Drug Enforcement Strike Force also played an important role in today’s enforcement actions. The Strike Force is comprised of agents and officers of the DEA, NYPD, HSI, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the New York Department of Taxation and Finance, the Rockland County Sheriff’s Office, the Clarkstown Police Department, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Negar Tekeei, Alexander Rossmiller, Katherine Reilly, and Max Nicholas are in charge of the prosecution. Assistant U.S. Attorney Niketh Velamoor of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture of assets.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty
U.S. v. Deiban, et al.
COUNT
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
1
Conspiracy to Distribute Narcotics (21 U.S.C. § 846)
ABDULLAH DEIBAN,
FARIS NASSER KASSIM,
MORAD NASSER KASSIM
a/k/a “BK,”
NAGEAB SAEED,
WALIDE SAEED,
MOHOMED SAEED,
HAMID MOSHREF,
MOHAMED SALEM,
MOHAMED ALMATHEEL, and FIKRI NAGI
20 years in prison
Defendants’ Ages and Residencies
DEFENDANT
RESIDENCE
AGE
- Murad Nasser Kassim
29
- Nageab Saeed
26
- Walide Saeed
30
- Mohamed Saeed
31
- Mohamed Abdullah Salem
47
- Fikri Yahwa Nagi
31
- Abdullah Deiban
35
- Faris Nasser Kassim
32
- Mohamed Almatheel
Unknown
- Hamid Moshref
Unknown
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Who Set Fire to CVS During Baltimore Unrest Pleads Guilty to Federal Crime of RiotingRead the Press Release
Baltimore, Maryland –Raymon Carter, age 24, of Baltimore, Maryland, pleaded guilty today to the federal crime of rioting on April 27, 2015, including the arson of the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.
“The most important aspects of this case are that Raymon Carter will be punished for participating in the riot and that ordinary citizens concerned about their neighborhood helped to catch him,” said U.S. Attorney Rod J. Rosenstein. “Federal law prohibits people from traveling across a state line or using a telephone to participate in a civil disturbance that involves acts of violence, and this case sends a message that we intend to use it. Anyone who considers participating in a riot should know that police, prosecutors and citizens will track them down and send them to prison.”
“Our partnership with the U.S. Attorney’s Office, ATF, and other federal law enforcement agencies will ensure that criminals who harm our community will be held accountable for their actions,” said Baltimore Police Commissioner Kevin Davis
According to his plea agreement, on April 27, 2015, Carter used a telephone to discuss his plans to go to the scene of the riots that erupted across Baltimore following the funeral of Freddie Gray. Carter walked to the area of North and Pennsylvania Avenues, in the vicinity of the CVS Pharmacy located at 2509 Pennsylvania Avenue, where he was captured on video watching the rioting activity around him, including rioters setting small fires.
Looters broke through the main doors of the CVS and began removing merchandise and pharmaceuticals. Surveillance video shows Carter entering the CVS at 5:28 p.m. Carter used an open flame to illuminate the pharmaceuticals on the shelves. At 5:30 p.m. the video shows Carter unsuccessfully attempting first to move, and then to open, the pharmaceutical safe.
Carter is then seen on surveillance video going to and from the southeast corner of the sales floor – which the investigation showed was the area of origin of the fire - three separate times between 6:15 p.m. and 6:19 p.m. Carter admitted that his intent was to start a fire and that he used paper products from that area of the store to set the fire. At 6:19:34 p.m., the third time Carter is seen going to that corner of the store, he moves out of camera view, behind the shelves. Carter’s efforts to light a fire were successful and at 6:19:57 p.m. a flash of light can be seen on the video. After the flash of light, Carter reappears on the surveillance video from behind the shelves and is seen running away from the area toward the CVS exit. Flames in the southeast corner of the store become visible on the surveillance video at 6:22:19 p.m. Fourteen seconds later Carter is seen walking towards the exit while looking back at the fire, and the looters are seen running toward the exit. No other individual is seen on the surveillance video in the area of the fire from the time of the flash of light until Carter exits the store.
The Baltimore Fire Department was called to the CVS at 6:28 p.m. When firefighters arrived at the store, heavy smoke was seen venting from the main entry doors and the roof. The Baltimore Police Department established riot lines in an attempt to control the crowds while the firefighters worked to extinguish the fire.
Carter was subsequently identified by citizens after the ATF released two still photographs from the surveillance videos to the media and announced a $10,000 reward for information leading to the suspect’s identification, arrest and conviction. On June 29, 2015, the ATF released a wanted poster for Carter and received a hotline tip on July 1, 2015 concerning Carter’s location. ATF agents located, and after a foot chase, arrested Carter. At the time of his arrest, Carter had little in his pockets except two black lighters.
The total loss for the building alone as a result of the fire is estimated at $1.1 million. As part of his plea agreement Carter will be required to pay restitution, with the exact amount of restitution to be determined at sentencing.
Carter and the government have agreed that if the Court accepts the plea agreement Carter will be sentenced to four years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 17, 2015 at 2:00 p.m.
The federal crime of rioting, governed by Section 2101 and 2102 of Title 18 of the United States Code, applies when a defendant travels across a state line or uses a facility of interstate commerce, including a telephone, to participate in a civil disturbance involving acts of violence.
The investigation into this and other arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Maryland State Fire Marshal’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson, who is prosecuting the case.