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16 October 2015
Baltimore Robber Sentenced to Nine Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Darryl Norris, age 37, of Baltimore, today to nine years in prison followed by three years of supervised release for robbing a video game store. Judge Russell also entered an order that Norris pay restitution of $13,481.15.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on September 24, 2014, Norris and two co-conspirators entered the Game Stop on Liberty Road in Baltimore, pointing fake guns which appeared to be real weapons at an employee. The robbers demanded that the employee open the register, from which they took money. The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as cash and merchandise.
Norris admitted to committing six other robberies with co-conspirators from August 26 to September 27, 2014, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; Cappy Cleaners on Belair Road in Baltimore; The Summit at Owings Mills, in Owings Mills, Maryland; Royal Farms on Wilkens Avenue and another Royal Farms on Keswick Road, both in Baltimore; and 7-Eleven on Pleasant Plains Road in Towson, Maryland.
The total loss from the seven robberies was $13,481.15.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Aurora Gang Member Sentenced to 20 Years in Federal Prison for Gun and Drug CrimesRead the Press Release
DENVER – Michael Eugene Simpson, age 35, of Aurora, Colorado, was sentenced late last week to 240 months (20 years) in federal prison for gun and drug charges U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Ken Croke announced. The defendant was also ordered to spend 3 years on supervised release after serving his prison sentence. He was remanded into custody at the end of the sentencing hearing.
Simpson was first charged by Criminal Complaint on June 20, 2014. He was indicted by a federal grand jury in Denver on June 30, 2014. On January 1, 2015, Simpson was charged in a superseding indictment. He was convicted on April 9, 2015 following a three day jury trial of 13 of the 14 counts charged in the superseding indictment. The jury deliberated for approximately 5 hours before delivering their verdicts. Simpson was convicted of possession of cocaine with the intent to distribute, possession of a firearm by a convicted felon, and possession of an unregistered destructive device and possession of ammunition by a convicted felon. The defendant was sentenced on October 9, 2015.
According to court documents, as well as information presented to the jury during trial, on June 19, 2014, at approximately 3:00 a.m., law enforcement special agents and officers executed a search warrant in Aurora, Colorado. The address was the residence of Michael Simpson. Aurora Police Department and ATF had previously received information that Simpson, a convicted felon, was in possession of numerous firearms and was participating in drug activity. That morning, upon approaching the residence, law enforcement officials found Simpson in a vehicle in the driveway. He did not comply with commands and instead turned the vehicle on and tried to flee. He attempted to back out the driveway but could not because a law enforcement vehicle was parked directly behind him. He proceeded to back up into the vehicle several times until law enforcement officers broke the driver side window and tased him.
Agents and officers then conducted a lawful search of the residence, law enforcement officers found: (1) a loaded .40 Smith and Wesson firearm in a vehicle outside the house; (2) a loaded, Cobray 12 gauge Streetsweeper shotgun in the garage; (3) a loaded, .380 Bersa handgun in a safe from a downstairs closet; and, (4) 19.9 grams of cocaine in a plastic bag on the kitchen counter. In the same safe where the .380 Bersa handgun was found, law enforcement officers found over 100 rounds of ammunition, a digital scale, a beaker, and plastic bags used to distribute cocaine. Law enforcement officers found ammunition in two kitchen cabinets, on top of the refrigerator, and on a desk downstairs. A razor blade, digital scale, and plastic bags were also found in a kitchen cabinet.
Simpson, a member of the 83 Gangster Crips, has previous drug-related felony convictions. His felony convictions prohibit him from legally possessing firearms or ammunition.
“A small number of criminals account for a large part of the crime problem, and this case is a perfect example,” said U.S. Attorney John Walsh. “Because of close team work between with Aurora Police Department and ATF that produced the key evidence, our office was able to prosecute this dangerous gang member successfully, obtain a severe sentence from the court and make the streets of Aurora safer.”
“Simpson is a dangerous felon with little regard for the safety of those around him. Bringing this criminal to justice was a team effort, and we appreciate the great work done by our partners in the Aurora Police Department and the Colorado Attorney’s Office during this case,” Agent Croke said. “The ATF is proud to play a role in making Colorado’s streets safer.”
"We are fortunate to have positive working relationships with our law enforcement partners at the local, state and federal level. The joint efforts in this case led to a successful arrest and conviction," said Chief Metz.
This case was investigated by the ATF and the Aurora Police Department.
The defendant was prosecuted by Assistant U.S. Attorneys Jason St. Julien and Robert Brown.
"P.A.C.E.—Police and Community Engagement: Conference to be hosted in Aiken in November to bring together law enforcement and the community"Read the Press Release
Contact Person: Lance Crick (864) 282-2100
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles, announced today that the United States Attorney’s Office for the District of South Carolina is proud to join the Aiken Department of Public Safety and the South Carolina Law Enforcement Officers’ Association (SCLEOA) as a host for the P.A.C.E. (Police and Community Engagement) Conference in Aiken on November 5-6, 2015. The goal of this conference, which includes a plenary session with both law enforcement and members of the community, is to provide both the community and law enforcement with an understanding of their roles in 21st Century policing.
Topics will include verbal communications skills to help de-escalate volatile situations, strengthening community partnerships, the power of partnerships, and successful joint efforts between the community and law enforcement to keep communities in South Carolina safe, to include the Aiken Safe Communities program.
Launched in early 2013, the Aiken Safe Communities Initiative is a unified, proactive community approach to engage, educate, and encourage recurring offenders to change their behavior and make healthy life choices. The initiative also bands together local, state, and federal law enforcement to expedite the investigation and prosecution of individuals who reoffend in lieu of accepting opportunities and assistance offered by the community during public notification meetings held at Aiken City Hall several times a year.
From 2012-2013, the City of Aiken experienced an 86% reduction in murders. Earlier this year, the South Carolina Community Development Association presented the City of Aiken with its 2014 Award of Excellence, recognizing community development efforts that have significantly improved the quality of life in the community.
All participants must register on-line with SCLEOA at www.scleoa.org/lecc.
P.A.C.E. Training announcement attached below:
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15 October 2015
Wyoming Man Sentenced for Involuntary Manslaughter and Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on October 13, 2015, Jared Michael Romero, 22, was sentenced in federal court to 10 months of home confinement and 2 years of Supervised Release on one count of involuntary manslaughter, and one count of assault resulting in serious bodily injury, in connection with an incident involving Romero causing the death of his 19 year old passenger, Clay Walters, in a drunk driving crash. Romero was also ordered to pay $145,489.86 in restitution for medical expenses incurred by a second victim who survived the crash. As part of his sentence, Romero will participate in victim impact panels and other anti-drunk driving forums, speaking publicly about the consequences of drunk driving. Romero will also be required to obtain an alcohol evaluation, follow through with all treatment recommendations, participate in cognitive and behavioral treatment, submit to searches of his person and residence upon reasonable cause and follow all rules of his supervising U.S. Probation officer. Romero was also ordered to pay a $200 special assessment in addition to other terms and conditions.
This case was investigated by the Bureau of Indian Affairs, the Fremont County Sheriff’s Department and the Wyoming Highway Patrol.
Woman Sentenced to 5 Years in Prison for Transporting Proceeds of Cocaine TraffickingRead the Press Release
PITTSBURGH - A California woman has been sentenced in federal court to five years in prison on her conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Misha Cannon, 49, of San Bernardino, Calif.
According to information presented to the court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Misha Cannon was intercepted over the wire conspiring with others, including her brother, Lionel Cannon, to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier. During the conspiracy, Misha Cannon was responsible for transporting proceeds of the cocaine trafficking from the Western District of Pennsylvania to California. In August 2014, Misha Cannon also helped Lionel Cannon obtain a new supply of cocaine and conducted a deal for the purchase of one kilogram of cocaine, which was later seized by law enforcement.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Cannon.
Washington D.C. Man Indicted for Transporting Teenage Boy to Engage in Sexual ActivityRead the Press Release
BOSTON – Jason Michael Wolf, 30, of Washington, D.C., was indicted today in U.S. District Court in Boston on one count of transporting a minor in interstate commerce to engage in illegal sexual activity.
According to court documents, on Aug. 17, 2015, the Massachusetts Bay Transportation Authority (MBTA) Police received information that an adult man and a minor were acting inappropriately at the South Station Bus Terminal. Law enforcement arrived on scene and interviewed the two individuals who were identified as Wolf and a 14-year-old boy from Maryland. The two admitted that they had met on a mobile dating app in July, had traveled to Boston from Maryland, and had engaged in sexual activity in Maryland, Washington D.C., New York, and Boston.
Wolf was arrested by the Boston Police in August and charged with aggravated statutory rape of a child under state law. He is currently being held by local authorities.
The charge of transportation of a minor in interstate commerce to engage in illegal sexual activity provides for a minimum mandatory term of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; James V. Buthorn, Acting Inspector in Charge of the U.S. Postal Inspection Service; Boston Police Commissioner William Evans; and Acting Chief Kenneth Green of the MBTA Transit Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
United States and the State of Alaska Opt Not to Recover Additional Damages from Exxon Mobil Under Reopener Provision of 1991 Exxon Valdez Oil Spill SettlementRead the Press Release
The Department of Justice and the Alaska Department of Law announced that they are bringing to a close the federal and state judicial actions against ExxonMobil Corporation and its corporate predecessors regarding the 1989 Exxon Valdez oil spill. The Prince William Sound, Alaska, harlequin ducks and sea otters thought in 2006 to have been impacted by lingering subsurface oil have recovered to pre-spill population levels. Scientists have concluded that exposure to the subsurface oil is no longer biologically significant to these species. Accordingly, the governments have decided to withdraw their 2006 request to Exxon to fund bio-restoration of subsurface lingering oil patches.
The March 1989 grounding of the tanker vessel Exxon Valdez on Bligh Reef in Prince William Sound spilled nearly 11 million gallons of North Slope crude oil that ultimately contaminated some 1,500 miles of Alaska’s coastline. It affected three national parks, four national wildlife refuges, a national forest, five state parks, four state critical habitat areas, a state game sanctuary and killed enormous numbers of birds, marine mammals and fish and disrupted the lives and livelihoods of Alaskans who rely on those resources.
On Oct. 8, 1991, U.S. District Court Judge Russel Holland approved both a plea agreement resolving criminal charges against Exxon Corporation and Exxon Shipping (Exxon) under various federal environmental laws and a settlement agreement between Exxon and the United States and the state of Alaska resolving all civil claims between them pertaining to the spill. Under the plea agreement, the company paid $125 million for a criminal fine and restitution. The civil settlement required Exxon to pay the governments $900 million over 10 years to reimburse past costs and fund the restoration of injured natural resources.
Since 1991, the Exxon Valdez Oil Spill Trustee Council, composed of representatives from both governments, has used civil settlement monies for significant restoration efforts in the areas affected by the spill, including: projects designed to restore the environment, manage human uses and reduce marine pollution; habitat protection and acquisition; and monitoring and research. These restoration efforts have successfully accelerated and documented the recovery of natural resources that were injured by the spill. Further, due to income earned on the settlement funds, the Trustee Council currently has more than $200 million at its disposal for future restoration work.
One unresolved aspect of the 1991 settlement has been a provision in the consent decree entitled “Reopener for Unknown Injury” that allowed the governments to seek up to an additional $100 million if they later found substantial losses or declines in populations, habitats or species that could not have been anticipated at the time of the settlement. This provision allowed the governments to obtain additional funding from Exxon to restore injuries shown to be both unforeseeable and “substantial” if several conditions were met. Those conditions include presenting a detailed plan to Exxon by Sept. 1, 2006, for how to restore the substantial loss or decline of natural resources.
The governments took preliminary actions in 2006 to preserve a potential Reopener claim, by presenting to Exxon a plan to address patches of oil from the Exxon Valdez spill that recent surveys had found in the subsurface sediments and among rocks of a number of beaches in the spill area. Although this “lingering oil” occurred on only a small fraction of the originally oiled shoreline, the governments viewed it as a substantial loss of habitat because it appeared to be impeding the recovery of two species, harlequin ducks and sea otters, that were injured by the Exxon Valdez spill and forage in the types of beach sediments where the oil persists, thereby exposing them to the lingering oil.
When Exxon declined to participate, the governments undertook the first stages of the habitat restoration plan, which consisted of a series of scientific studies to improve understanding of why the oil had not yet degraded and to design specific measures to make it non-toxic. These studies were funded by the Trustee Council from the original settlement monies and have produced significant public information about the distribution and characteristics of the lingering oil, as well as pilot tests to improve techniques for accelerating the bio-degradation of subsurface oil in various types of beaches. These studies will inform restoration and resource management decisions both in Prince William Sound and in similar areas across the United States and the world. During this period, however, continued wildlife monitoring showed that the harlequin ducks and sea otters that had appeared vulnerable to the lingering oil have recovered to pre-spill population levels and are no longer exposed to oil more than populations outside the spill area. Based on this information, the governments and the trustee agencies – the Departments of Agriculture Forest Service and the Interior, National Oceanic and Atmospheric Administration (NOAA), Alaska Department of Environmental Conservation, Alaska Department of Fish and Game and Alaska Department of Law – have concluded that the legal requirements for pursuing a Reopener claim are no longer met.
“Our decision today highlights the trustees’ commitment to excellent science and the success of their restoration efforts since the spill,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The Reopener in our settlement with Exxon was unique and set a high bar for recovery of additional damages. Together with our partners in the Alaska Department of Law, we preserved a potential Reopener claim and investigated it to its logical end. Our action today allows us to celebrate all that has been accomplished in Prince William Sound since the spill.”
“Although we will not be pursuing Exxon for additional damages, our decision today does not close the book on lingering oil,” said Attorney General Craig Richards for Alaska. “We are fortunate to have alternatives for dealing with this issue that can be undertaken without the constraints of the Reopener language. We will be engaging Alaskans through the Trustee Council process to advise us on what steps they would like to see us take. ”
“I expect the Trustee Council will evaluate whether active restoration should be performed at any lingering oil sites using the same standards and process by which it considers other potential restoration projects,” said Trustee Council member and Senior Advisor Michael Johnson for Alaska Affairs to the Secretary of the Interior.
The Council has directed restoration efforts since the 1991 settlement and has established transparent procedures, with opportunities for public proposals and comment, for spending the restoration funds paid by Exxon.
NOAA scientists, who were instrumental in developing the information that led to the 2006 habitat restoration plan, will continue to monitor lingering oil sites and provide information to the Trustee Council for use in determining whether additional restoration measures will benefit the affected coastline.
“Naturally, the persistence of oil is of concern to us,” said Lois Schiffer of the NOAA General Counsel. “Although the lingering oil is largely in subsurface soil or rocks, it does have the potential, if disturbed, to expose intertidal resources to oil, and its presence can be disturbing to people who come across it. The real question is whether it is better to intervene or to leave it to break down over time.”
U.S. Attorney’s Event:Training Law Enforcement Officers to Serve Victims of Hate Crimes Against Members of the LGBTQ CommunityRead the Press Release
KANSAS CITY, KAN. – U.S. Attorney Barry Grissom will speak during an all-day hate crimes symposium Nov. 4 in Kansas City, Kan. The event is free and open to the public, but registration is required.
“The public – and law enforcement – need to be more aware of the problem of hate crimes generally, and against the LGBTQ community in particular,” Grissom said. “We need more and stronger partnerships with local communities to prevent hate crimes and to enhance prosecutions against offenders when they occur.”
Featured speakers will include Dennis and Judy Shepard, the parents of Matthew Shepard, founders of the Matthew Shepard Foundation. Their son was beaten, tortured and left to die near Laramie, Wyoming, in October 1998. The case helped to raise public awareness of hate crimes and led Congress to pass the Matthew Shepard and James Byrd, Jr. Hate Crime Prevention Act.
Other speakers will include Dave O’Malley, who investigated Shepard’s death, Kristi L. Donahue of the FBI, Kristy Parker of the Justice Department’s Civil Rights Division, Amanda Spee, FBI Special Agent, and Crystal Middlestadt an OVC Consultant /Resource Development Director, Grassroots Institute for Fundraising Training.
The event is set for 8:30 a.m. to 3:30 p.m. Nov. 4, 2015, at the Reardon Civic Center at the Hilton Garden Inn, 520 North Minnesota, Kansas City, Kan. Registration is required. A registration form is available online at http://www.continuinged.ku.edu/register/n/event_details.php?pn=LE160244 or email [email protected] for a form.
U.S. Attorney announces $3.5 million settlement with Westwood Mental Health LLCRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport community mental health center, Westwood Mental Health LLC, and its parent company, MedSouth LLC, have agreed to pay $3.5 million to settle False Claims Act and Anti-Kickback Statute allegations.
The settlement results from Westwood’s self-disclosure to the Office of Inspector General of the Department of Health and Human Services (HHS OIG) through the OIG’s Provider Self-Disclosure Protocol. According to the self-disclosure and the investigation that followed, from 2006 through 2009, the United States alleged that Westwood falsified patient records, billed for services not medically necessary, billed for services that were not rendered, provided bribes to Medicare beneficiaries who did not qualify for partial hospitalization services and provided bribes and/or kickbacks to employees to further or conceal the fraud.
“Reaching this settlement through the self-disclosure process demonstrates what the health care community and law enforcement can achieve by working together,” Finley stated. “When Westwood discovered the problems, it brought the matter to the attention of the HHS Office of Inspector General, and in doing so avoided the costs associated with a protracted investigation and the risk of potential fines under the False Claims Act.”
Healthcare fraud poses a serious risk to the integrity of our health care system, and the U.S. Attorney’s Office remains committed to aggressively pursuing healthcare providers who seek public funds through unlawful means. The United States encourages all health care providers to self-disclose any known violations that have resulted in the submission of improper claims to federal health care programs.
This case was handled by the Department of Health and Human Services Office of Inspector General and the U.S. Attorney’s Office for the Western District of Louisiana. Assistant U.S. Attorney Karen J. King represented the United States.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Two sentenced for oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two individuals were sentenced in federal court today for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Tyree Dupree Williams, 21, of Detroit, Michigan, was sentenced today to 51 months in prison for selling oxycodone in September 2014 near the campus of West Virginia University in Monongalia County, West Virginia. He pled guilty in June 2015 to one count of “Aiding and Abetting Distribution of Oxycodone within 1,000 Feet of a Protected Location.” The Mon Metro Drug and Violent Crime Task Force investigated.
Paul Dennison, 34, of Wallace, West Virginia, was sentenced today to 37 months in prison after he was discovered in possession of oxycodone and multiple firearms in January 2015 in Harrison County, West Virginia. In light of his previous felony conviction in Harrison County for “Delivery of a Controlled Substance – Marijuana,” he is prohibited from possessing firearms. He pled guilty in July 2015 to one count of “Possession with Intent to Distribute Oxycodone – Aiding and Abetting” and one count of “Felon in Possession of a Firearm.” He was sentenced today to 37 months on each count. The sentences will run concurrently for a total of 37 months in prison. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Zelda Wesley prosecuted Williams and Assistant U.S. Attorney Shawn Adkins and former Assistant U.S. Attorney Shawn Morgan prosecuted Dennison on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Two convicted of heroin, cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two individuals were convicted of heroin and cocaine trafficking this week in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Elliot Iwon Reed, 31, of Baltimore, Maryland, sold heroin and cocaine in Berkeley County, West Virginia. He pled guilty to one count of “Conspiracy to Distribute Cocaine Base and Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. The Eastern Panhandle Drug and Violent Crime Task Force investigated.
Bruce Morton Vaudrien, Jr., 46, of Kearneysville, West Virginia, participated in a drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into West Virginia, Virginia, and Pennsylvania. He pled guilty to:
• One count of “Possession with Intent to Distribute Heroin” for which he faces up to 20 years in prison and a fine of up to $1,000,000, • One count of “Use of a Telephone to Facilitate the Distribution of Heroin” for which he faces up to four years in prison and a fine of up to $500,000, and
• One count of “Interstate Travel in Aid of Racketeering” for which he faces up to five years in prison and a fine of up to $500,000.The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry. 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 defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted Vaudrien and Camilletti, along with Special Assistant U.S. Attorney Stephanie Taylor, prosecuted Reed on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Two convicted in Pittsburgh, PA to WV and OH heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Joseph P. McKee, 25, of Wheeling, and Jeff R. Andlinger, 34, of Benwood, West Virginia were convicted of heroin trafficking this week in federal court, United States Attorney William J. Ihlenfeld, II, announced.
The defendants each participated in a drug distribution network in which heroin was transported across state lines from Pittsburgh, Pennsylvania to locations in West Virginia and Ohio for redistribution and sale. They were among six individuals charged in an 18-count federal indictment in June 2015.
Andlinger sold heroin in January 2015 near a public elementary school in Marshall County, West Virginia. He pled guilty to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.
McKee conspired to possess and sell heroin in Marshall and Ohio Counties in West Virginia throughout 2014 and 2015. He pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” 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 defendants.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge James E. Seibert presided.
Two Oakland Men Sentenced to 57 and 55 Years in Prison for String of Armed RobberiesRead the Press Release
OAKLAND – Melvin Landry, Jr. and Dominique Marquis Martin were sentenced on October 13, 2015, for their participation in a case involving a spree of armed robberies of commercial businesses in and around the Bay Area, announced Acting United States Attorney Brian J. Stretch; FBI Special Agent in Charge David J. Johnson; and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
Landry, 24, of Oakland, was sentenced to 685 months in prison and ordered to pay restitution in the amount of $52,387.28. Martin, 24, also of Oakland, was sentenced to 661 months in prison and ordered to pay $53,387.28 in restitution.
Landry and Martin were defendants in a 25-count Superseding Indictment filed on July 29, 2014. Both defendants were charged with, among other things, conspiracy to commit robbery affecting interstate commerce (Hobbs Act robbery) and Hobbs Act robbery, in violation of 18 U.S.C. § 951(a); and use, possession, and brandishing of a firearm in furtherance of and during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
According to evidence presented at trial, beginning in 2012, the defendants, operating with others in the greater Bay Area including Mill Valley, Fremont, and San Leandro, engaged in numerous armed robberies of McDonald’s restaurants and Walmart stores. During these robberies, the defendants brandished firearms and stole cash and checks while the stores were full of customers. The defendants and others broadcast and boasted about their criminal activities on Facebook, Instagram, and YouTube. The defendants appeared in pictures taken in the aftermath of their crimes in which they were rolling around in large amounts of cash. They also documented themselves on spending sprees with the proceeds from their robberies. On July, 1, 2015, a jury found Landry and Martin guilty of conspiracy to commit robbery affecting interstate commerce, robbery affecting interstate commerce, and using/possessing/brandishing a firearm in furtherance of and during and in relation to a crime of violence.
The sentence was handed down on October 13, 2015, by the Honorable Jeffrey S. White, United States District Judge. Landry and Martin have been in federal custody since July 29, 2013, and will begin serving their sentence immediately.
This case was prosecuted by Assistant United States Attorneys Kathryn Haun, Cynthia Frey, and Kimberly Hopkins with the assistance of Kevin Costello, Daniel Charlier-Smith, Ponly Tu, and Assistant United States Attorney Olusere Olowoyeye of the Eastern District of California. The prosecution is the result of an investigation by the FBI, IRS Criminal Investigation, the California Highway Patrol, the Fremont Police Department, the Alameda County Sheriff’s Department, the Alameda County DA’s Office, the San Leandro Police Department, the San Mateo Police Department, the San Mateo District Attorney’s Office, the Oakland Police Department, the Pinole Police Department, the San Rafael Police Department, the Marin County Sheriff’s Office, the Antioch Police Department, the Richmond Police Department, the Vallejo Police Department, and the Sacramento Police Department.
Two Mail Carriers Charged with Bribery in Connection with Narcotics Trafficking OperationsRead 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, in the first of its kind prosecution, Dennis Bernhard, 56, of Derby, NY, and Briana Fugate, 25, of Cheektowaga, NY, were arrested and charged in separate criminal complaints with multiple counts of bribery. Fugate was also charged with possession with intent to distribute and distribution of marijuana. The bribery charge carries a maximum penalty of 15 years in prison and a $250,000 fine. The marijuana charge is punishable by five years in prison.“These defendants were willing to allow drug dealers to turn the U.S. Mail into their own personal narcotics delivery service,” said U.S. Attorney Hochul. “This Office is committed to protecting the integrity of this important Government operation, as well as ensuring that all who work in public service discharge their responsibilities with honesty and integrity.”
“The Postal Service is in the business of moving the mail. It has no interest in being an unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs,” stated Acting Postal Inspector in Charge James V. Buthorn. “Part of the mission of the Postal Inspection Service is to ensure a safe and secure work environment for our employees. This alleged activity by these defendants poses a significant threat to those we strive to protect. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation. Together we can fight this on-going war on drugs in an effort to keep our communities and employees safe.”
"As employees of the United States Government, we are sworn to serve others, not ourselves," said Adam S. Cohen, Special Agent in Charge of the FBI's Buffalo Division. "Whether it be a postal carrier, councilman, or meter mechanic, we must honor the positions we hold."
"Corrupt postal employees represent a serious breach of public trust and must not go unaddressed," stated ICE HSI Special Agent in Charge James C. Spero. "HSI will continue to partner with other federal law enforcement agencies to ensure that public employees and the U.S. Mail system is not exploited or compromised for illegal means."
Assistant U.S. Attorney Wei Xiang, who is handling the cases, stated that the defendants are accused of accepting bribes while on the job as postal carriers in order to facilitate what they believed were marijuana distribution operations. According to the criminal complaints, Bernhard, a postal employee for 16 years, and Fugate, a two year postal employee, provided addresses of unsuspecting citizens in the City of Buffalo to person posing as a drug dealer in order to be mailed boxes of narcotics from the West Coast. These addresses were within each carrier’s mail delivery route, so that when the boxes arrived in Buffalo, the carrier did not deliver the boxes to the listed recipient address, but held on to the boxes and handed them directly to the witness in exchange for payments of between $200 and $300 per box.
Fugate also stands accused of abusing her positon to examine boxes shipped by customers which she suspected contained drugs, stealing the contents in event the boxes held narcotics, and then selling a vacuum-sealed pound of suspected marijuana to the CHS.
The defendants will make an initial appearance this afternoon at 2:30 p.m. before U.S. Magistrate Judge H. Kenneth Schroeder.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the United States Postal Inspection Service, under the direction of Acting Inspector in Charge James Buthorn, the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.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.
Two Charged with Hobbs Act RobberyRead the Press Release
David Murray, 32, and Terrell Lang 23, of Philadelphia, Pennsylvania were charged today by indictment for their roles in the commission of two Hobbs Act robberies of pharmacies in Montgomery County, Pennsylvania. The charges arise from the defendants’ June 28, 2015 robbery of over $7,000 from the CVS Pharmacy, located at 2622 Jenkintown Avenue in Glenside, Pennsylvania, and David Murray’s September 15, 2015 robbery of over $4,000 from the Walgreens Pharmacy located at 1 Yorktown Plaza in Elkins Park, Pennsylvania.
If convicted the defendant David Murray faces a maximum possible sentence of 40 years’ imprisonment and co-defendant, Terrell Lang, faces a maximum possible sentence of 20 years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Spokane Man Sentenced to Nineteen Years in Federal Prison for Possession of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michael James Alderman, age 42, of Spokane, Washington, was sentenced after having previously plead guilty on July 31, 2015 to Possession of Child Pornography. Senior United States District Court Judge Justin L. Quackenbush sentenced Alderman to a nineteen year term of imprisonment, to be followed by a 35 year term of court supervision after he is released from Federal prison. In addition, Alderman was ordered to forfeit to the United States the computer, tablet, and cell phone he used to receive and store his child pornography collection. Alderman will also be required to register as a sex offender.
According to information disclosed during the court proceedings, in January of 2015, while Alderman was on supervision as a prior sex offender, his Community Corrections Officer received information that Alderman was in possession of images of child pornography. Further investigation revealed that Alderman had child pornography on his computer tablet. Investigation by the Federal Bureau of Investigation and federal search warrants for Alderman’s email accounts revealevd that Alderman had been using his email to receive and possess child pornography, which included prepubescent female children under the age of twelve.
Michael C. Ormsby stated, “This manner of victimization of children is thoroughly unacceptable and the United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. I commend the FBI and the Washington State Department of Corrections for their efforts in successfully investigating this case. This is yet another example of a child-pornography-offense that was investigated and prosecuted in this District.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation and the Washington State Department of Corrections. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and Project Safe Childhood Coordinator for the Eastern District of Washington.
Sentencings for October 8 - October 15, 2015Read the Press Release
Paul E. Draper, 35, of Hanna, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 15, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Draper was arrested in Hanna, Wyoming. He received 33 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $250.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Beau Spain, 38, of Sacramento, California, was sentenced by Federal District Court Judge Alan B. Johnson on October 15, 2015, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Spain was arrested in Sacramento, California. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Celestino Roberto Sandoval, 78, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 14, 2015, on three counts of distribution of cocaine and one count of possession with intent to distribute cocaine. Sandoval was arrested in Cheyenne, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Wayne Brandon Day, 25, of Lander, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 8, 2015, for possession of child pornography. Day was arrested in Casper, Wyoming. He received 18 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $2,000.00. This case was investigated by the Federal Bureau of Investigation.
Richmond Heights woman sentenced to eight years in prison for operating an $18 million healthcare fraud schemeRead the Press Release
A Richmond Heights woman was sentenced to nearly eight years in prison for operating an $18 million home healthcare fraud scheme, law enforcement officials said.
Sharon Ward, 45, was sentenced to 94 months in prison and ordered to pay $18 million in restitution after previously being found guilty to healthcare fraud and aggravated identity theft.
Her mother, Queen Ward, 64, of Cleveland Heights, was previously found guilty of healthcare fraud. She was sentenced to five years supervised release, 300 hours of community service, and ordered to pay more than $400,000 in restitution .
Together, they owned and operated Heritage Home Healthcare Agency in Cleveland Heights, despite the fact that Sharon Ward was previously convicted of Medicaid fraud, which precluded her participation in all federal health care programs for five years. Sharon Ward continued to own Heritage Home Health while she was excluded, as well as continued to see patients as a nurse, conducted nursing visits and bill Medicaid for her and her employees’ services. Queen Ward continued to bill Medicaid for her daughter’s services, and continued to pay Sharon Ward, despite the fact that she had been told by the Ohio Medicaid Fraud Control Unit that Sharon Ward was an excluded provider and had never been reinstated as an accredited provider, according to court documents.
Queen Ward also created fraudulent background checks for prospective employees that had criminal records and therefore would have been disqualified, according to court documents.
Between 2006 and 2014, Heritage Home Health received more than $18.1 million from Medicaid and Sharon Ward received a salary of more than $2.2 million, all during Sharon Ward’s period of exclusion from federal health care programs, according to court documents.
“The conduct detailed in these cases is egregious,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “These programs were designed to help the sick and infirm, and these defendants defrauded them out of millions of dollars for their own personal gain.”
“Health care fraud affects every American,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Waste, fraud and abuse take critical resources out of our health care system, contribute to the rising cost of health care and degrades the integrity of our health care system and legitimate patient care. This week’s efforts send a message to those defrauding our system that authorities will collaboratively address this significant crime problem.”
“The defendants in this case exhibited a complete disregard for the law and potentially put the safety and well-being of elderly and ill homebound patients at risk,” said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Today’s sentencing should serve as a deterrence to those who attempt to execute health care fraud schemes, and demonstrate that the OIG and our law enforcement partners are actively engaged in protecting vulnerable patients and taxpayer dollars.”
“Ohio has one of the best Medicaid Fraud Control Units in the country, and we diligently work with our state, local, and federal partners to weed out those who bill Medicaid and Medicare for services they did not provide or services that are not medically necessarily,” said Attorney General Mike DeWine. “Heath care fraud diverts funds from people who legitimately need care, and through joint efforts like this one, we intend to continue to aggressively go after those who steal from taxpayers and take money that they are not entitled to receive.”
This case was prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by the FBI, U.S. Department of Health & Human Services, Office of Inspector General and the Ohio Attorney General's Medicaid Fraud Control Unit.
Readout of Attorney General Lynch's Visit to ColombiaRead the Press Release
On her first official visit to Colombia, Attorney General Loretta E. Lynch traveled to Bogota to head the U.S. delegation to the Organization of American States REMJA X, the 10th Meeting of Ministers of Justice and Attorneys General of the Americas. While in Colombia, the Attorneys General delivered remarks during the REMJA Head of Delegation Dialogue, and also met with the President of Colombia, and with her counterparts from other countries attending the conference.
The REMJA—a policy and technical forum at the hemispheric level on matters related to justice and international legal cooperation—is attended by Ministers of Justice, other Ministers or Attorneys General from the 34 Organization of American States (OAS) member states. Representatives from the member states have responsibilities in the area of public policy regarding matters of justice and international legal cooperation, especially with regard to criminal matters.
During her remarks, the Attorney General noted that now more than ever has the collaborative work of the OAS member states been necessary.
“As our hemisphere – and our world – grows more interdependent and interconnected than ever before, that kind of collaboration has become increasingly important. The threats that we face are no longer restrained by borders or oceans, or limited to one country or region. And the problems impacting one nation can easily affect us all. From corruption and kleptocracy that causes people to lose confidence in institutions of government, to organized criminal enterprises like human trafficking rings that impact our citizens’ sense of security, we are faced with global challenges that require a truly global response.”
The Attorney General also noted the Justice Department’s establishment of a dedicated kleptocracy force within the FBI as an example of its ongoing efforts to investigate criminals worldwide and “bring down criminal networks that seek to exploit our most vulnerable citizens.”
She also spoke about one of her top priorities – expanding the department’s ability to take on crimes that occur in cyberspace. One such example is the creation of a cyber unit within the Criminal Division’s Office of International Affairs that is tasked “exclusively on responding to and executing requests for electronic evidence from foreign authorities.”
Additionally, the Attorney General referenced that through the Budapest Convention, the United States and countries around the world are building a strengthened international network to “fight crimes like computer hacking, fraud, and child pornography, and to combat related criminal activity from organized crime to terrorism.”
More generally, the Attorney General emphasized the department’s intention to reinforce and improve its ability to engage efficiently and effectively with its global counterparts to “expand capacity, enhance cooperation, and provide technical assistance in relation to matters from money laundering to terrorism to human trafficking.”
Lastly, while in Colombia, the Attorney General had individual meetings with the following individuals:
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Juan Manuel Santos Calderon, Colombia’s President
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Eduardo Montealegre Lynett, Colombia’s Attorney General
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Yesid Reyes Alvarado, Colombia’s Minister of Justice
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Arely Gomez, Mexico’s Attorney General
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Representatives from Costa Rica, El Salvador, Honduras and Panama
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Raymond Racey Sentenced to 240 Months in Prison for Methamphetamine Manufacturing ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On Oct. 15, 2015, Raymond Racey, 35, of Rockwood, Tenn., was sentenced to serve 240 months in prison, by the Honorable Pamela Reeves, U.S. District Judge, for conspiracy to manufacture and distribute 50 grams or more of methamphetamine (meth) and possession of precursors used to manufacture meth. Upon his release from prison, he will be supervised by the U.S. Probation Office for 10 years.
Racey was charged along with several others in a July 2014 indictment. In June 2015, he pleaded guilty to the offenses described above. According to documents on file with U.S. District Court, between 2012 and 2014, Racey conspired with at least one other person to manufacture and distribute at least 50 grams of meth in various locations in east Tennessee. According to pharmacy records and by his own admission, he purchased, or had others purchase for him, pseudoephedrine that he used to manufacture meth.
This case was investigated by the Roane County Sheriff’s Office, Harriman Police Department, Rockwood Police Department, Kingston Police Department, Tennessee Bureau of Investigation, and Federal Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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Pittsburgh Man Pleads Guilty in Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has pleaded guilty in federal court to a charge of fraud conspiracy, United States Attorney David J. Hickton announced today.
Duane Jackson, 30, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Jackson and his conspirators agreed to defraud account holders at Pittsburgh area banks by a remote deposit, mobile-banking scheme in which Jackson and conspirators deposited fictitious checks into victim accounts, and later withdrew cash at the Rivers Casino and ATMs.
Judge Cercone scheduled the sentencing for Feb. 17, 2016, at 1 p.m. The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Jackson. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partners in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the Department of Homeland Security, the United States Secret Service, the United States Postal Inspection Service, and the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Pill Mill Operator Pleads Guilty to Conspiring to Distribute Oxycodone and Other Drugs in Maryland and New YorkRead the Press Release
Baltimore, Maryland – Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida pleaded guilty today to conspiracy to distribute oxycodone and other drugs.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“State and federal authorities are continuing to look at ways to shut down ‘pain clinics’ that are really just fronts for criminals who divert pharmaceutical drugs and hook a new generation of addicts,” said U.S. Attorney Rod J. Rosenstein. “Gerald Wiseberg traveled from state to state setting up clinics that prescribed opioid drugs to people who had no medical need for the drugs.”
“This pill mill operator case shows the complexity of the drug abuse cycle and how law enforcement must take a multi-tiered approach in dealing with prescription drug abuse and the connected abuse of heroin”, stated Assistant Special Agent in Charge Don A. Hibbert. “When users of prescription medications, especially opiate derivatives like oxycodone, become abusers of the medication, they often find themselves switching from oxycodone to a cheaper drug such as heroin. In doing so, a new generation of heroin addicts are created, which leads to an increase in cases of heroin overdoses we see every day in this nation.”
According to Wiseberg’s plea agreement, from March 2010 through February 2011, Gerald Wiseberg owned and operated Total Care Medical Center, a pain management clinic located in Deerfield Beach, Florida. Although Wiseberg was not a medical doctor, he established the standard operating procedures for the clinic, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs. As a result of the procedures instituted by Wiseberg, Total Care accepted cash payments in exchange for providing prescriptions for large amounts of controlled substances (including oxycodone and alprazolam) to customers who did not have a legitimate medical need for the drugs.
In late 2010 and early 2011, two Maryland co-conspirators traveled to Florida to learn how to operate a pain clinic like Total Care. By early 2011, Wiseberg and the two Maryland co-conspirators agreed to open a similar pain management clinic in Maryland. Wiseberg and the co-conspirators opened Healthy Life, with Wiseberg as part owner of the business. Wiseberg interviewed and hired medical directors at Healthy Life specifically because he believed they would write prescriptions for narcotics to customers without a legitimate medical need.
Healthy Life first opened in Owings Mills, Maryland, but in October 2011, moved to a larger office in Timonium, Maryland. Both Healthy Life locations attracted large and unruly crowds. While outside the locations, customers caused disturbances, used narcotics, and engaged in narcotics transactions. Over 80% of the customers who received a prescription from Healthy Life were from out of state. Approximately 97% of the customers who received prescriptions from Healthy Life received at least one prescription for oxycodone.
From June 2011 through April 2012, Wiseberg was paid $12,000 per month by his co-conspirators for his role at Healthy Life. In addition to these monthly payments, Wiseberg also received cash payments for his 30% share of the net profits from the operation of Health Life. In 2011 alone, those cash payments totaled $165,000.
As part of his plea agreement, Wiseberg also pleaded guilty to a charge filed in the Southern District of New York for conspiring to distribute oxycodone and other drugs. In that case, Wiseberg conspired with others to recruit patients from pain clinics to fill their prescriptions at specific pharmacies owned and controlled by Wiseberg’s co-conspirators. Wiseberg admitted that he knew the prescriptions for oxycodone and other drugs that were given to the patients he recruited were not for a legitimate medical purpose and were issued outside the bounds of medical practice. Wiseberg also knew that the pharmacies would honor the prescriptions because his co-conspirators had recruited pharmacists to staff the pharmacies who would fill such prescriptions. As part of the scheme, Wiseberg and his co-conspirators required that patients filling prescriptions for oxycodone and other narcotics to submit another prescription for a non-controlled substance at the same time. Wiseberg admitted that he knew that the patients submitting the prescriptions would, and did, pay substantially marked-up prices for oxycodone and purchase additional non-controlled substances they did not need, in order to receive the painkillers that were prescribed to them without a legitimate medical purpose.
Wiseberg faces a maximum sentence of 20 year in prison for each of the drug conspiracy charges to which he is pleading guilty. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for March 7, 2016 at 9:15 a.m.
United States Attorney Rod J. Rosenstein commended the DEA Baltimore District Office and New Jersey Field Division, IRS, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office, for their work in these investigations. Mr. Rosenstein expressed his appreciation to U.S. Attorney Preet Bharara for the Southern District of New York, and Assistant U.S. Attorneys Edward Diskant, Daniel Tehrani, and Shawn Crowley, who handled the New York prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who are prosecuting the Maryland case.
Pierre Man Sentenced for LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, man convicted of Larceny was sentenced on October 6, 2015, by U.S. District Judge Roberto A. Lange.
KT Burgee, a/k/a K.T. Burgee, age 21, was sentenced to time served, 2 years of supervised release, $4,500 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Burgee was indicted by a federal grand jury on January 1, 2015. He pled guilty to the indictment on July 20, 2015.
The conviction arose from a disagreement that occurred on January 1, 2015, at Eagle Butte, which led to Burgee being locked out of the house. He then walked down the road, got into a pickup that belonged to someone else, and drove away. Burgee failed to make a curve in the road, rolled the pickup, and totaled it. Burgee was ejected in the rollover. When he learned that the police and ambulance were on the way, Burgee ran away from the crash site. A Cheyenne River Sioux Police Officer located Burgee later that evening, walking down a dirt road about a mile from the crash site. The pickup Burgee took is valued at more than $3,000.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Philadelphia Man Sentenced to More Than 10 Years in Prison for Trying to Distribute 1.7 Kilograms of Pure MethamphetamineRead the Press Release
NEWARK, N.J. – A Philadelphia man was sentenced today to 126 months in prison for trying to deliver 1.7 kilograms of pure methamphetamine in Elizabeth, New Jersey, U.S. Attorney Paul J. Fishman announced.
Aaron Vega-Castelo, 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 11, 2013, Vega-Castelo was stopped while driving a blue Jeep on the New Jersey Turnpike in Elizabeth. Law enforcement found four plastic food storage-style containers of methamphetamine hydrochloride and two shoeboxes containing approximately $110,000 in cash in the back seat area of his vehicle. Vega-Castelo admitted that at the time he was stopped by law enforcement, he was on his way to deliver the drugs and cash to other individuals near an Ikea in Elizabeth.
DEA testing of the seized methamphetamine revealed that it had a net weight of 1.79 kilograms and substance purity of 95.1 percent, which results in 1.7 kilograms of pure methamphetamine hydrochloride.
In addition to the prison term, Judge Arleo sentenced Vega-Castelo to five years of supervised release.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Narcotics and Organized Crime Drug Enforcement Task Force Unit in Newark.
Defense counsel: Eric M. Mark Esq., Newark, New Jersey
Phenix City Woman Sentenced for Involvement in $2.5 Million Stolen Identity Tax Refund Fraud RingRead the Press Release
Montgomery, Ala. – A Phenix City, Alabama, woman was sentenced to serve five years in prison today in U.S. District Court for the Middle District of Alabama for her involvement in a stolen identity tax fraud (SIRF) scheme, U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division announced today.
Teresa Floyd, 53, was sentenced by Chief U.S. District Judge W. Keith Watkins of the Middle District of Alabama to serve 60 months in prison to be followed by three years of supervised release and was ordered to pay $734,565 in restitution to the Internal Revenue Service (IRS).
Floyd pleaded guilty earlier this year to one count of conspiracy to defraud the United States with respect to claims and one count of aggravated identity theft. Floyd’s daughter, Lasondra Miles Davis, 37, pleaded guilty earlier this year to one count of aggravated identity theft. On Sept. 1, Davis was sentenced to serve two years in prison to be followed by one year of supervised release and was ordered to pay $1,941 in restitution to the IRS.
According to court documents, between March 2011 and May 2014, Floyd and Davis operated several tax preparation businesses in the Phenix City area, including T & L Tax Service. Floyd obtained stolen identities which, according to allegations in the superseding indictment, she and her co-conspirators then used to file more than 900 false federal income tax returns that claimed more than $2.5 million in tax refunds. Floyd, Davis and others caused the fraudulently obtained refund checks to be cashed at several businesses in Alabama and Georgia.
U.S. Attorney Beck Jr. and acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Michael P. Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Pennsylvania man convicted of heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Khalil Brown, 34, of Philadelphia, Pennsylvania, was convicted of heroin trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Brown, also known as “Shadow,” was among 21 individuals charged in a 65-count federal indictment in November 2014. The indictment disrupted an extensive drug trafficking operation in which heroin and oxycodone were transported across state lines from Philadelphia, Pennsylvania to Morgantown, West Virginia for redistribution and sale throughout the region.
Brown sold heroin in 2014 near West Virginia University in Monongalia County, West Virginia. He pled guilty to “Distribution of Heroin within 1000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Penn Hills Man Sentenced to 3 Years in Federal Prison for Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 37 months’ imprisonment on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Abdul Boyd, 39, of Penn Hills, Pa.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Abdul Boyd was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Boyd.
Orange Park Man Sentenced to More Than 7 Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Charles Eugene Mears (56, Orange Park) to seven years and six months in federal prison for receiving child pornography over the Internet. He was also ordered to serve a 10-year term of supervised release, register as a sex offender, and pay $3,000 in restitution to one of the victims.
According to court documents, a Florida Department of Law Enforcement agent in Jacksonville began an undercover investigation to identify individuals in northeast Florida that were trading images and videos of child pornography over the Internet. The agent identified a computer that was hosting images of child pornography using a file sharing program, and was able to download several of the files. Further investigation traced the host computer to Mears’s residence.
Agents subsequently executed a federal search warrant at Mears’s residence and seized several computers and other electronic media. Forensic analyses of Mears’s laptop revealed that it contained at least 211 videos depicting child pornography, including at least one video depicting the sexual abuse of a toddler.
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
One Defendant Sentenced to 12 Years in Prison, Another Pleads Guilty to Heroin Trafficking in New Orleans EastRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICKY MARQUETTE BOZEMAN, age 37, of Laplace, was sentenced today after having previously pled guilty to one count of conspiracy to distribute and possess with intent to distribute over 100 grams of heroin.
U.S. District Judge Carl J. Barbier sentenced BOZEMAN to 144 months incarceration, to be followed by four years of supervised release.
Also announced was that VINCENT JONES, age 45, of New Orleans, pled guilty today to conspiracy to distribute and conspiracy to possess with intent to distribute over one kilogram of heroin. JONES is facing not less than 20 years and a maximum of life imprisonment, as well as a possible fine of up to $20,000,000. Judge Barbier set sentencing on January 21, 2016.
BOZEMAN and JONES were two of twelve defendants charged in a 23-count indictment on July 25, 2014. According to court documents, this indictment sprung from an investigation into a heroin-trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in the New Orleans area. As part of the arrests in this case, federal agents have seized from the twelve defendants approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry, and real property) as proceeds made from the sale of heroin.
“Heroin is leading to alarming levels of violence and overdose deaths in our communities,” stated U.S. Attorney Polite. “Because of the danger posed by this dangerous narcotic, our Office will be vigilant in fighting heroin trafficking, and the loss of life that stems from it, in all parts of Southeast Louisiana.”
“Heroin has become an epidemic in the New Orleans area and DEA is attacking the criminals who target the weak and addicted with their violent drug trafficking,” said DEA Special Agent in Charge Keith Brown. “Heroin trafficking is the worst of the worst, preying on and sometimes creating an addict population which leads to other types of crime and violence. This investigation demonstrates the commitment of the DEA and the U.S. Attorney’s Office to dismantle these groups and send them to federal prison.”
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Ohio man sentenced to eight years in Federal prison for drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A Belpre, Ohio man who organized a large-scale drug trafficking ring in and around Washington County, Ohio and Wood County, West Virginia was sentenced today to eight years in federal prison, United States Attorney Booth Goodwin announced. Brent Jason Sidwell, 33, of Belpre, Ohio previously pleaded guilty in April of 2015 to conspiracy to distribute 100 kilograms or more of marijuana. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
In the fall of 2013 members of the Parkersburg Narcotics and Violent Crimes Task Force and the Washington County (Ohio) Major Crimes Task Force began working with an informant to purchase marijuana and cocaine from Sidwell and his associates in Belpre and Parkersburg. Many of the transactions occurred at the former 5th Street Pub in Parkersburg. The pub was owned by Sidwell and operated by him and several associates. Investigators eventually obtained a wiretap of Sidwell’s phone. In April 2014, task force personnel executed search warrants at numerous locations including Sidwell’s residence, several “stash houses” used by the organization, and an apartment and rented storage unit in Mineral Wells, West Virginia where they seized drugs, scales, cash, and other evidence.
Sidwell admitted to obtaining and distributing up to 3,000 kg of marijuana over the course of the conspiracy from the fall of 2010 until April 2014. The marijuana was obtained on consignment from out-of-state sources. After selling the drugs to local dealers, Sidwell and other members of the organization made payment in the form of bulk cash deliveries, wire transfers, preloaded debit cards, and by depositing money in the local branch of a large bank where it would be immediately withdrawn at another branch. Sidwell’s organization primarily supplied dealers in marijuana and cocaine. In turn, the dealers distributed the drugs in and around Washington County, Ohio and Wood County, West Virginia.
Numerous other individuals were prosecuted as part of this investigation. Timothy Fields, 38, of Vienna previously pleaded guilty to distribution of marijuana and cocaine. He was sentenced in January 2015 to six years in federal prison. Dustin Jarvis, 34, of Mineral Wells, West Virginia pleaded guilty to possession with intent to distribute heroin and cocaine. He was sentenced in August 2015 to 8 years in federal prison. Christopher Paul Johnson, 43, of Parkersburg, West Virginia pleaded guilty to being a felon in possession of a firearm. He was sentenced to 7 years in federal prison in May 2015. Joshua Neal McVey, 32, of Parkersburg, West Virginia pleaded guilty on October 14, 2015 to possession with intent to distribute heroin and methamphetamine. He is scheduled to be sentenced on January 14, 2016. David Aaron Naylor, 29, of Vienna, West Virginia pleaded guilty to conspiracy to distribute marijuana and cocaine. He will be sentenced on October 21, 2015. Other individuals have been prosecuted by state authorities in Washington County, Ohio and Wood County, West Virginia.
This case represents the ongoing cooperation between the Parkersburg Narcotics and Violent Crimes Task Force, the Washington County Major Crimes Task Force, the Wood County, West Virginia Prosecuting Attorney, the Washington County, Ohio, Prosecuting Attorney, the Ohio Organized Crime Commission and the Internal Revenue Service. Assistant U.S. Attorney Joshua Hanks is in charge of the federal prosecution.
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Nyack Man Arrested for Sales of Synthetic Cannabinoid That Resulted in One Known OverdoseRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), announced the arrest today of the owner of a retail smoke shop called Liquid Glass in Nyack, New York, that is alleged to have sold smokeable synthetic cannabinoids (“SSC”). The owner, ANDREW GROGAN, allegedly sold or conspired to sell at least 39 packets of SSCs over a one-year period, resulting in at least one overdose. GROGAN was arrested this morning and was presented before U.S. Magistrate Judge Judith C. McCarthy this afternoon in White Plains federal court.
Manhattan U.S. Attorney Preet Bharara said: “As I emphasized when we announced New York City’s largest joint federal and local action confronting these drugs a month ago, synthetic cannabinoids are a public health crisis that is reaching epidemic proportions. Smoking it is a dangerous game of Russian Roulette that too many in our communities are playing. These drugs aggravate all manner of other societal ills: they are entering prisons, preying on the homeless; burdening our emergency rooms; fueling addiction; exacerbating mental health problems; and increasing risks to cops who have to deal with people high on it. Today’s arrest is part of our ongoing commitment to confront this serious public health problem.”
DEA Special Agent in Charge James J. Hunt said: “To make it simple, synthetic cannabinoids (K2) have become one of the most significant threats to public health because it is cheap and because it is misconceived as being safe. K2 is second only to marijuana as the most frequently used illegal drug among high school seniors, and has resulted in a dramatic increase of emergency room visits and overdose deaths. K2 is nothing more than poisonous products wrapped in candy wrappers and sold on the street as safe highs. DEA and our law enforcement partners are prioritizing efforts to identify those responsible for distributing synthetic cannabinoids throughout our communities.”
NYPD Commissioner Bratton said: “Synthetic cannabinoids, more commonly known as K2, can be incredibly dangerous and pose a significant risk to both the public and the emergency responders who come into contact with them. I want to thank the investigators involved in this case whose hard work held accountable this individual’s alleged effort to sell K2.”
The following allegations are based on the unsealed Complaint filed today in Manhattan federal court:[1]
Starting in January 2015 and continuing until his arrest, GROGAN sold SSCs, with brand names like “Green Giant” and “Geeked Up,” from his smoke shop in Nyack, New York. GROGAN mentioned to undercover law enforcement that he had a supplier of SSCs from whom he could either pick up products after store hours or receive products by mail. On at least one occasion, GROGAN traveled to New York, New York, to purchase 10 packets of SSCs from another smoke shop.
GROGAN also stated to undercover law enforcement that he was “all out” of the SSC “Green Giant” because there had been a festival in Nyack that had “kids lined up outside the door” to buy the products.
The SSCs distributed by GROGAN caused one known overdose: On January 10, 2015, an individual overdosed after consuming a mixture of four packets of SSCs labeled “Tranquility,” “Meditate,” “Karma,” and “Dream Catcher.” Medical reports concluded that the overdose resulted from cannabinoid consumption. Friends of the victim obtained the SSCs from GROGAN’s smoke shop in Nyack.
SSCs are made by mixing illegal synthetic compounds with chemical solvents, including acetone and/or flavoring additives, and spraying the resulting liquid mixture onto leafy materials, like tea leaves. The SSCs are then bundled into colorful retail packets that are sold under names such as “Green Giant” and “Geeked Up,” each containing between approximately three and six grams of product, and sometimes marked “not for human consumption” or “potpourri.”
SSCs are widely accessible because they are inexpensive and commonly sold at otherwise legitimate retail locations, like GROGAN’s Liquid Glass. The colorful logos used on the SSC retail packets and the flavors used, such as lime, strawberry, and blueberry, make SSCs attractive to teenagers and young adults. Physical effects of SSCs include agitation, rapid heart rate, confusion, dizziness, nausea and vomiting, paranoia, panic attacks, and acute kidney injury. In addition, SSCs have inconsistent potencies, often containing more than one synthetic compound, and are sometimes laced with other toxic chemicals. Nationally, calls to poison centers in the United States related to SSC use between January and May 2015 increased 229% over the same period in 2014.
Some of the brand names of SSCs sold by GROGAN, like “Geeked Up” and “Green Giant,” were also alleged to have been used by the 10-member international narcotics conspiracy charged by this office by Indictment on September 16, 2015. This Complaint marks a continuation of the major law enforcement action against SSC manufacturers and distributors announced via press release following that Indictment.
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GROGAN, 48, of Nyack, New York, is charged with one count of conspiring to distribute a controlled substance, and one count of distributing a controlled substance, each of which carries a maximum sentence of 20 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence will be determined by the judge.
U.S. Attorney Preet Bharara thanked the Drug Enforcement Administration’s Tactical Diversion Squad (Group TDS-NY) comprised of agents and officers from the U.S. Drug Enforcement Administration (DEA), the New York City Police Department, the New York State Police, Town of Orangetown Police Department, and the Westchester County Police Department in conjunction with Rockland County Drug Task Force and South Nyack Police Department for their work in the year-long investigation, which he noted is ongoing.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Jennifer L. Beidel is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
New York Man Sentenced to More Than 12 ½ Years for Illegally Possessing Cache of Machine Guns, Rifles, and Other FirearmsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANTONIO OLMEDA of New York, New York, was sentenced today by U.S. District Court Judge Richard M. Berman to 151 months in prison. OLMEDA pled guilty on October 14, 2014, to all six counts charged in the Indictment against him: three counts of being a convicted felon in possession of various firearms, two counts of possessing unregistered machine guns, and one count of possessing an unregistered short-barreled shotgun. OLMEDA was arrested in December 2011 on state charges in connection with his alleged attempt to shoot two police officers with the New York City Police Department (“NYPD”).
U.S. Attorney Bharara stated: “Antonio Olmeda, a one-man armory, was a convicted felon in possession of a vast cache of deadly weapons. He violated federal law by possessing guns at all, and even had he not been a convicted felon, he violated federal law by failing to register certain of the weapons. As is alleged in the pending state prosecution of Olmeda for attempted murder, he was not merely a hoarder of weapons, he used them with deadly intentions, shooting at two uniformed police officers. His sentence today reflects the seriousness of his crimes.”
According to the Indictment filed in federal court, other documents filed in federal court, statements made at various proceedings in this case, and evidence presented at a two-day sentencing hearing:
On December 2, 2011, OLMEDA, who at the time was wearing a disguise, was approached by two uniformed NYPD officers in Queens, New York. The officers asked OLMEDA to remove his hands from his pockets, which OLMEDA refused to do. When one of the officers attempted to restrain OLMEDA, OLMEDA resisted, pulled a revolver out of his pocket, and fired two shots at the officers, missing the officers. OLMEDA then fled the scene. Bullet fragments from the gun that OLMEDA fired were later found at a nearby pediatric dental office.
In the morning of December 19, 2011, law enforcement officers approached OLMEDA in Manhattan and arrested him for the shooting on December 2, 2011. At the time of this arrest, the officers recovered from OLMEDA’s person a .45 caliber handgun, and from OLMEDA’s car a .38 caliber revolver with two live rounds of ammunition and three spent .38 caliber shell casings. Subsequent ballistics testing confirmed that this .38 caliber revolver was the same firearm that OLMEDA fired on December 2, 2011. OLMEDA’s possession of the .38 caliber revolver was the subject of an evidentiary hearing before Judge Berman in connection with OLMEDA’s sentencing in this case. Judge Berman concluded that “[t]here is no doubt . . . that by firing the gun at [the two NYPD police officers] Mr. Olmeda intended to cause serious injury to those officers.”
In connection with OLMEDA’s arrest on December 19, 2011, officers also recovered from OLMEDA’s car a document containing the names of two attorneys and a federal judge. One of the attorneys had previously represented OLMEDA in a prior case, and had an office in close proximity to the location where OLMEDA, wearing a disguise and carrying the .38 caliber revolver, had been approached by officers. Another attorney on the document had previously represented one of Olmeda’s former lawyers in a civil lawsuit brought by OLMEDA. The federal judge on the document had presided over, and dismissed, the lawsuit. Also found in OLMEDA’s car was a copy of a last will and testament in OLMEDA’s name. OLMEDA previously had purchased a lot at a cemetery and commissioned the engraving of a tombstone in his name.
Later on December 19, 2011, law enforcement officers conducted a search of OLMEDA’s apartment in Manhattan. This search resulted in the recovery of a number of additional firearms, including a .223 caliber fully automatic rifle, a 9-mm fully automatic pistol, and two other pistols.
On September 6, 2012, law enforcement officers searched OLMEDA’s storage locker in Yonkers, New York. The officers found inside the storage locker, among other things, a sawed-off shotgun, two sniper rifles with scopes, two machine guns, at least eight pistols, a revolver, and numerous rounds of ammunition. Officers also found a lifelike mask that could be used to disguise one’s face and various protective gear, including bulletproof vests and gas masks.
In total, in or about 2011, OLMEDA illegally possessed the following firearms:
- Springfield Armory Ultra Compact .45-caliber semi-automatic handgun
- Taurus 85 Ultralite .38 caliber revolver
- Olympic Arms PCR03 .223 caliber fully-automatic rifle
- Smith & Wesson .40 caliber semi-automatic pistol
- Beretta 92SB Compact 9-mm Luger semi-automatic pistol
- Cobray Industries M-11 9-mm Luger fully automatic pistol
- Remington model Mohawk 600 .308 caliber rifle
- Roggio Arsenal model RA-15 rifle receiver/frame
- Interarms rifle
- Three Springfield Armory model 1911A1 .45-caliber pistols
- Sig Sauer model SP 2022 9-mm pistol
- Taurus model PT140 Millenium .40 caliber pistol
- Smith & Wesson model 4006 .40 caliber pistol
- Star Bonifacio Echeverria model Firestar 9-mm pistol
- Charter Arms model Police Undercover .32 caliber revolver
- Walther model PPK/S .380 caliber pistol
- Vulcan Arms model V15 7.62x39-mm machine gun
- Norinco AK-type 7.62x39-mm machine gun
- Mossberg model 500A 12-gauge shotgun
- A .45 caliber semi-automatic pistol of unknown make and model
OLMEDA has two prior felony convictions. First, in November 1995, OLMEDA was convicted in Bronx County Supreme Court of criminal possession of a dangerous weapon in the first degree. At the time of his arrest on that charge, OLMEDA possessed an Uzi machine gun, a sawed-off shotgun, a silencer, and several boxes of ammunition for the Uzi. A search of OLMEDA’s van on the same day uncovered a flamethrower, 18 pipe bombs, seven cans containing black powder, and 1,100 rounds of ammunition.
Second, in April 2003, OLMEDA was convicted in the United States District Court for the Eastern District of North Carolina of possessing ammunition after having previously been convicted of a felony. On June 12, 2002, OLMEDA, who was in possession of luggage, was approached by law enforcement officers outside of the Fort Bragg military installation in North Carolina after inquiring about the security at Fort Bragg. A search of OLMEDA’s luggage resulted in the recovery of 328 rounds of ammunition and receipts for ammunition purchased earlier that day.
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OLMEDA, 57, was convicted of three counts of being a convicted felon in possession of various firearms, in violation of 18 U.S.C. § 922(g)(1); two counts of possessing unregistered machine guns, in violation of 18 U.S.C. §§ 5845(b), 5861(d); and one count of possessing an unregistered short-barreled shotgun, in violation of 18 U.S.C. §§ 5845(a)(2), 5861(d). In addition to the 151-month prison term, OLMEDA was sentenced by Judge Berman to three years of supervised release and ordered to pay a $600 special assessment.
OLMEDA is separately charged by the state in Queens County, New York, with two counts of attempted murder in the first degree, two counts of attempted assault on a police officer with a deadly weapon, one count of criminal possession of a weapon in the second degree, and two counts of attempted assault in the first degree, all arising out of his alleged attempt to shoot two NYPD police officers in Queens, New York, on or about December 2, 2011. The state charges are merely accusations, and OLMEDA is presumed innocent of those state charges unless and until proven guilty.
Mr. Bharara praised the outstanding efforts of the Joint Terrorism Task Force – which principally consists of agents from the Federal Bureau of Investigation and detectives from the NYPD; the United States Bureau of Alcohol, Tobacco, Firearms and Explosives; and the United States Marshals Service. Mr. Bharara also thanked the NYPD and the Yonkers Police Department for their assistance.
The case is being handled jointly by the Office’s Terrorism and International Narcotics Unit and Violent and Organized Crime Unit. Assistant U.S. Attorneys Shane T. Stansbury, Michael D. Maimin, and John P. Cronan are in charge of the prosecution.
Navy Civilian Engineer Sentenced to 11 Years for Attempted EspionageRead the Press Release
Mostafa Ahmed Awwad, 36, of Yorktown, Virginia, was sentenced today to 132 months in prison by U.S. District Judge Raymond A. Jackson of the Eastern District of Virginia for attempted espionage relating to his attempt to provide schematics of the nuclear aircraft carrier USS Gerald R. Ford to Egypt while serving as a Navy engineer.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division and Special Agent in Charge Tim Quick of the Naval Criminal Investigative Service (NCIS) Norfolk, Virginia, Field Office made the announcement.
“Awwad took advantage of his position of trust within the Navy to share the schematics of the USS Gerald R. Ford nuclear aircraft carrier with individuals whom he believed were representing a foreign government,” said Assistant Attorney General Carlin. “The National Security Division will continue to seek justice for those who abuse their access to sensitive defense information.”
“Awwad attempted to steal the valuable plans for the USS Ford and to provide them to a foreign government,” said U.S. Attorney Boente. “This office is committed to safeguarding our nation’s sensitive defense information, and we will bring to justice those who seek to steal it. I want to commend our partners at the FBI Norfolk and NCIS Norfolk for their excellent work on this case.”
“The mission of NCIS includes protecting Sailors and secrets,” said Special Agent in Charge Quick. “Awwad endangered both; for personal gain and to help strengthen another nation's military. It's gratifying that NCIS was a part of bringing him to justice.”
Awwad pleaded guilty on June 15, 2015. According to court documents, Awwad began working for the Department of the Navy in February 2014 as a civilian general engineer in the Nuclear Engineering and Planning Department at the Norfolk Naval Shipyard. Based on a joint investigation, an undercover FBI agent contacted Awwad by telephone on Sept. 18, 2014, and asked to meet him the following day. Without seeking additional information from the caller, Awwad agreed. The next day, Awwad met with the undercover FBI agent, who was posing as an Egyptian intelligence officer, in a park in Hampton, Virginia. During the meeting, Awwad claimed it was his intention to utilize his position with the U.S. Navy to obtain military technology for use by the Egyptian government, including but not limited to the designs of the USS Gerald R. Ford nuclear aircraft carrier, a new Navy “supercarrier.” Awwad agreed to conduct clandestine communications with the undercover FBI agent, and to conduct “dead drops” in a concealed location in the park.
On Oct. 9, 2014, Awwad and the undercover FBI agent met at a hotel where Awwad described a detailed plan to circumvent U.S. Navy computer security by installing software on his restricted computer system that would enable him to copy documents without causing a security alert. At this time, Awwad also provided the undercover FBI agent with four Computer Aided Drawings of a U.S. nuclear aircraft carrier downloaded from the Navy Nuclear Propulsion Information system. During the discussion, Awwad indicated his understanding that the drawings would be sent to and used in Egypt. Awwad also asked the undercover FBI agent for $1,500 to purchase a pinhole camera that he would wear around the shipyard to photograph restricted material. At the conclusion of the meeting, Awwad agreed to provide the undercover FBI agent with passport photos which would be used to produce a fraudulent Egyptian passport so that Awwad could travel to Egypt without alerting U.S. government officials.
On Oct. 23, 2014, Awwad traveled to the prearranged dead drop site situated on a secluded hiking trail and utilized a concealed container disguised in a hole in the ground. He retrieved $3,000 before placing an external hard drive and two passport photos inside.
On Dec. 5, 2014, Awwad and the undercover agent met in the Hampton Roads, Virginia, area. During this meeting, Awwad stated that he planned to travel to Egypt. Awwad subsequently said he wanted to meet with “high ranking” Egyptian intelligence and military officials in Cairo. Awwad also stated during the meeting that he had copied all of the schematics. During the meeting, Awwad provided the undercover FBI agent a thumb drive that contained more schematics of the USS Gerald R. Ford. The undercover FBI agent handed Awwad the “escape plan” – in actuality a manila envelope with no real plan inside – along with $1,000 in currency, shortly before Awwad was arrested.
The schematics of the USS Gerald R. Ford that Awwad provided are information related to the national defense of the United States. The USS Gerald R. Ford, which is currently under construction, is the first in a new class of aircraft carriers. When completed, the USS Gerald R. Ford will be the most advanced aircraft carrier in the world, with approximately 4,000 sailors on board. The schematics contain Naval Nuclear Propulsion Information and they are marked with the handling restriction “NOFORN,” which means they are not releasable to foreign persons.
This case was investigated by the FBI’s Norfolk Field Office and NCIS Norfolk, in cooperation with the Department of Navy. This case was prosecuted by Assistant U.S. Attorneys Benjamin L. Hatch and Joseph E. DePadilla of the Eastern District of Virginia and Senior Trial Attorney Heather M. Schmidt of the Justice Department’s National Security Division.
Navy Civilian Engineer Sentenced to 11 Years for Attempted EspionageRead the Press Release
NORFOLK, Va. – Mostafa Ahmed Awwad, 36, of Yorktown, was sentenced today to 132 months in prison for attempted espionage relating to his attempt to provide schematics of the Navy’s newest nuclear aircraft carrier, the USS Gerald R. Ford, to Egypt.
“Mr. Awwad attempted to steal the valuable plans for the USS Ford and to provide them to a foreign government,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This office is committed to safeguarding our nation’s sensitive defense information, and we will bring to justice those who seek to steal it. I want to commend our partners at the FBI Norfolk and NCIS Norfolk for their excellent work on this case.”
“Awwad took advantage of his position of trust within the Navy to share the schematics of the USS Gerald R. Ford nuclear aircraft carrier with individuals whom he believed were representing a foreign government,” said John Carlin, Assistant Attorney General for National Security. “The National Security Division will continue to seek justice for those who abuse their access to sensitive defense information.”
“This case is a chilling reminder that the insider threat is more pervasive and dangerous than ever," said John S. Adams, Special Agent in Charge of the FBI's Norfolk Field Office. "The defendant’s actions and intent to provide national defense information to a foreign government posed a significant threat to national security and directly endangered the lives of American service members. The incident highlights the critical importance for the FBI to continue to prioritize counterintelligence matters and to vigorously investigate and disrupt any espionage activity directed against the United States.”
"The mission of NCIS includes protecting Sailors and secrets,” said Tim Quick, Special Agent in Charge of NCIS Norfolk Field Office. “Awwad endangered both; for personal gain and to help strengthen another nation's military. It's gratifying that NCIS was a part of bringing him to justice."
Awwad pleaded guilty on June 15, 2015. According to court documents, Awwad began working for the Department of the Navy in February 2014 as a civilian general engineer in the Nuclear Engineering and Planning Department at the Norfolk Naval Shipyard. Based on a joint investigation, an undercover FBI agent contacted Awwad by telephone on Sept. 18, 2014, and asked to meet him the following day. Without seeking additional information from the caller, Awwad agreed. The next day, Awwad met with the undercover FBI agent, who was posing as an Egyptian intelligence officer, in a park in Hampton, Virginia. During the meeting, Awwad claimed it was his intention to utilize his position with the U.S. Navy to obtain military technology for use by the Egyptian government, including but not limited to the designs of the USS Gerald R. Ford nuclear aircraft carrier, a new Navy “supercarrier.” Awwad agreed to conduct clandestine communications with the undercover FBI agent, and to conduct “dead drops” in a concealed location in the park.
On Oct. 9, 2014, Awwad and the undercover FBI agent met at a hotel where Awwad described a detailed plan to circumvent U.S. Navy computer security by installing software on his restricted computer system that would enable him to copy documents without causing a security alert. At this time, Awwad also provided the undercover FBI agent with four Computer Aided Drawings of a U.S. nuclear aircraft carrier downloaded from the Navy Nuclear Propulsion Information system. During the discussion, Awwad indicated his understanding that the drawings would be sent to and used in Egypt. Awwad also asked the undercover FBI agent for $1,500 to purchase a pinhole camera that he would wear around the shipyard to photograph restricted material. At the conclusion of the meeting, Awwad agreed to provide the undercover FBI agent with passport photos which would be used to produce a fraudulent Egyptian passport so that Awwad could travel to Egypt without alerting U.S. government officials.
On Oct. 23, 2014, Awwad traveled to the pre-arranged dead drop site situated on a secluded hiking trail and utilized a concealed container disguised in a hole in the ground. He retrieved $3,000 before placing an external hard drive and two passport photos inside.
On Dec. 5, 2014, Awwad and the undercover agent met in the Hampton Roads, Virginia, area. During this meeting, Awwad stated that he planned to travel to Egypt. Awwad subsequently said he wanted to meet with “high ranking” Egyptian intelligence and military officials in Cairo. Awwad also stated during the meeting that he had copied all of the schematics. During the meeting, Awwad provided the undercover FBI agent a thumb drive that contained more schematics of the USS Gerald R. Ford. The undercover FBI agent handed Awwad the “escape plan” – in actuality a manila envelope with no real plan inside – along with $1,000 in currency, shortly before Awwad was arrested.
The schematics of the USS Gerald R. Ford that Awwad provided are information related to the national defense of the United States. The USS Gerald R. Ford, which is currently under construction, is the first in a new class of aircraft carriers. When completed, the USS Ford will be the most advanced aircraft carrier in the world, with approximately 4,000 sailors on board. The schematics contain Naval Nuclear Propulsion Information and they are marked with the handling restriction “NOFORN,” which means they are not releasable to foreign persons.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; Randall C. Coleman, Assistant Director of the FBI’s Counterintelligence Division; and Tim Quick, Special Agent in Charge of the NCIS Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated by the FBI’s Norfolk Field Office and NCIS Norfolk, in cooperation with the Department of Navy. Assistant U.S. Attorneys Benjamin L. Hatch and Joseph E. DePadilla, and National Security Division Counterespionage Senior Trial Attorney Heather M. Schmidt prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-163.
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Missouri City Woman Sentenced for Stealing More Than $1 Million from Former EmployerRead the Press Release
HOUSTON – A 49-year-old woman from Missouri City has been ordered to federal prison following her conviction of one count of wire fraud, announced U.S. Attorney Kenneth Magidson. Michelle Robyn Freytag pleaded guilty July 9, 2015, to defrauding her former employer - a Houston businessman - of more than $1.3 million.
At the hearing today, the victim addressed the court and urged for a sentence that would send a message to the members of the community that crimes of this nature will not be tolerated, noting they can “destroy lives, destroy families, destroy businesses and cause harm far exceeding just the financial costs to individual victims.” U.S. District Judge Keith P. Ellison, who accepted the guilty plea, then handed Freytag a 78-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay restitution of $1,107,152 to the victim. “I am sympathetic to defendants from disadvantaged backgrounds who commit offenses at a young age and are in trouble with the law before they are old enough to understand their actions,” said Judge Ellison. “None of that applies to Ms. Freytag. She was raised in a supportive family and has had access to good jobs. She chose to steal anyway.”
Freytag was hired in April 2009 to be her employer’s executive assistant. As part of her guilty plea, she admitted that as early as August 2009, she began misusing her position and her access to his credit card and banking information. She arranged for credit cards to be assigned in her name but under her employer’s various accounts at Whitney National Bank. As the executive assistant, Freytag was able to arrange for her personal expenditures to be satisfied with monies from bank accounts assigned to her employer or his other companies.
Over the next four years, Freytag repeated this process and obtained, without authorization from her employer, at least four additional Whitney Bank credit cards in his name, his spouse’s name and in the name of two of his other companies. Freytag obtained these credit cards by falsely representing to Whitney Bank that her employer had authorized the issuance of these cards or by falsely representing that certain previously issued credit cards had allegedly been lost and that replacements were requested by her employer or his spouse. Freytag used these credit cards to take cash advances and to make personal expenditures. She would then cause these cash advances and personal expenditures to be satisfied with monies from bank accounts assigned to her employer or his other businesses.
According to the plea agreement, Freytag’s unauthorized cash advances and personal expenditures between August 2009 and January 2014 (when her scheme was discovered) totaled approximately $1.3 million.
Although originally released on bond at the time of her Indictment in February 2015, Judge Ellison later revoked Freytag’s bond for repeated violations of her conditions of release. She has been in federal custody since Aug. 13, 2015, where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI. Assistant U.S. Attorney Jason Varnado prosecuted the case.
Member of Bronx Narcotics Organization Sentenced in Manhattan Federal Court to 45 Years for MurderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CATHERINE MORALES, a member of a drug trafficking organization (the “Organization”) that operated in the Bronx, was sentenced to 45 years in prison for murdering Aisha Morales (no relation) in June 2011. MORALES pled guilty in February 2015 to one count of intentionally killing an individual while engaged in a narcotics conspiracy, before United States District Judge Richard J. Sullivan, who imposed yesterday’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Catherine Morales, someone featured on ‘America’s Most Wanted,’ not only sold dangerous and potentially lethal drugs, but also committed a cold-blooded murder in broad daylight on East 163th Street in the Bronx. She has now been sentenced to the lengthy prison term those crimes merit.”
MORALES was initially charged in an Indictment with narcotics trafficking and firearms offenses, and was arrested by federal authorities in August 2013 in Philadelphia, Pennsylvania, where she was living in hiding under an assumed name. While MORALES was a fugitive, she was featured on the “America’s Most Wanted” television program. She was subsequently brought to Manhattan federal court in September 2013 to face those charges in the Southern District of New York. In January 2014, she was additionally charged with the murder of Aisha Morales in a superseding Indictment. The leader of the organization, Adony Nina, was later charged with the murder in a superseding Indictment filed in April 2014. Nina and co-defendant Candido Antomattei, another high-ranking member of the Organization, were convicted of narcotics trafficking and firearms charges following a trial in October 2013; Nina was subsequently convicted of participating in the Aisha Morales murder in a trial in May 2015. Thirteen other members of the Organization have pled guilty to various federal narcotics and firearms charges.
According to the publicly filed documents, evidence presented at the trials in this case, and statements made in court throughout the pendency of the case:
From 2008 through 2013, the Organization’s members sold crack cocaine and heroin, among other drugs, primarily in the vicinity of Longwood Avenue, and Beck, Kelly, and Simpson Streets in the Bronx. MORALES was involved primarily in the sale of heroin in the vicinity of Simpson and East 163rd Streets.
During and in relation to MORALES’s participation in the drug trafficking conspiracy, MORALES fatally shot victim Aisha Morales, who was 21 at the time of her death, in the head. The shooting took place in the vicinity of 1018 East 163rd Street, in broad daylight. Prior to the murder, MORALES and other members of the Organization threatened rival drug dealers who were selling drugs in the Organization’s territory. In one instance, MORALES threatened a rival that he needed to “get down or lay down.” The murder was the culmination of the dispute with the rival drug dealers. Aisha Morales was not involved in the drug-dealing activities that led to the dispute.
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In addition to the prison term, MORALES, 30, of the Bronx, New York, was sentenced to five years of supervised release and ordered to pay restitution. Nina is scheduled to be sentenced in January 2016.
Mr. Bharara praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New York City Police Department.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Christopher DiMase, Rebecca Mermelstein, Margaret Graham, and Sarah Krissoff are in charge of the prosecution.
Man Sentenced to 15 Years for Online Enticement of Virginia Beach GirlRead the Press Release
NORFOLK, Va. – Scott Thomas Sandler, 51, of Grand Forks, North Dakota, was sentenced today to 180 months in prison and lifetime supervised release for enticement of a minor.
Sandler pled guilty on March 26, 2015. According to court documents, Sandler met a 13 year-old girl from Virginia Beach on Facebook in March 2014. The two struck up an online friendship that quickly turned sexual, and Sandler sent numerous images of his genitals to her. The online relationship lasted about one month. At that time, the victim’s father found out and reported the crime to the Virginia Beach Police Department (VBPD), who identified Sandler by his self-photographs that he sent to the victim, which included a distinctive shirt that contained the name of Sandler’s employer in North Dakota. After Sandler was identified, his computers were confiscated and examined. The VBPD discovered that Sandler had been having online sexual relationships with additional minors, as well as collecting hundreds of sexually explicit images of minors from the Internet.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office, and James A. Cervera, Virginia Beach Chief of Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-4.
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Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on October 15, 2015, Andrew Jose Espinoza, 43, was sentenced to 15 years and 8 months (188 months) in prison for possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine, a mixture or substance containing cocaine, and a mixture or substance containing marijuana on October 16, 2014. Following the prison term, Espinoza will serve five years on supervised release.
On October 16, 2014, Espinoza was contacted by narcotics officers at a Lincoln motel and gave the officers consent to search his room which led to the finding of a total of approximately 95 grams of a substance containing methamphetamine, approximately one ounce of marijuana and a small amount of cocaine. Espinoza admitted he knew about the drugs in the room, that he had used methamphetamine just prior to the officers’ arrival, and that he was aware there was cash in the room obtained from drug sales.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Luzerne County Man Pleads Guilty to Making False Statements to Federally Licensed Firearms Dealers in Connection with Straw Party Gun PurchasesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthias Michael Yuran, age 27, of West Wyoming, Pennsylvania, pleaded guilty on October 13, 2015 before U.S. Magistrate Judge Joseph F. Saporito, Jr. in Wilkes-Barre to making false statements to federally licensed firearms dealers in connection with the purchase of 16 firearms.
According to United States Attorney Peter Smith, Yuran was charged in September 2015 with making false statements in connection with gun purchases. Between September 2014 and February 2015, Yuran made false written statements to firearms dealers in Luzerne, Lackawanna, and Bucks Counties. The statements were intended to deceive the dealers. Yuran falsely represented (1) that he was the actual buyer of the firearms and (2) the he was not an unlawful user or addicted to controlled substances, when in fact, he knew (1) that he was not the actual buyer, and (2) that he was an unlawful user of controlled substances.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Wyoming Borough Police Department. Prosecution is assigned to Assistant United States Attorney John C. Gurganus, Jr.
Yuran faces a maximum sentence of 10 years imprisonment and fines totaling $250,000.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Local Man Sentenced to 64 Years on Carjacking, Drug and Firearms ChargesRead the Press Release
St. Louis, MO – DARRELL A. SCOTT was sentenced to 64 years in prison on multiple charges involving two local, armed carjackings, as well as unrelated drug and firearm charges.
According to testimony presented at trial, in the early morning hours of August 27, 2011, Scott and Carris King committed two armed carjackings in the areas of North Florissant Avenue and Zealand Street in the City of St. Louis, Missouri, less than one hour apart. During each of the carjackings, the unsuspecting victims were forced out of their vehicles at gunpoint. Scott and King used the vehicle taken during the first carjacking to commit the second carjacking. Shortly after the second carjacking, responding officers with the St. Louis Metropolitan Police Department observed Scott and King driving the vehicle taken during the first carjacking and attempted to conduct a traffic stop. Scott and King fled at a high rate of speed, ultimately crashing the stolen vehicle into a vacant house. Scott and King flourished firearms at the officers as they climbed out of the stolen vehicle and escaped on foot. Officers later located the vehicle taken during the second carjacking abandoned nearby.
Scott was arrested by the St. Louis Metropolitan Police Department approximately two years later after officers received information of Scott’s involvement in the carjackings. At the time of his arrest, Scott was on bond from pending firearm and drug related charges arising out of an investigation beginning in September 2012, conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. During the course of that investigation, Scott sold to an undercover ATF Special Agent a total of approximately 14 grams of heroin and a firearm with an obliterated serial number. During four of the undercover buys, Scott was in possession of a firearm that he informed the ATF Special Agent he would not sell because he needed it.
Scott, St. Louis City, Missouri, pleaded guilty on April 16, 2015, to two felony counts of distribution of heroin, one felony count of being a felon in possession of a firearm and one felony count of possessing a firearm in furtherance of a drug-trafficking crime arising out of the ATF investigation. Scott proceeded to trial on the remainder of the charges on June 1, 2015, and was, thereafter, convicted of two felony counts of carjacking, two felony counts of brandishing firearms in furtherance of a crime of violence, and one felony count of being a felon in possession of a firearm. He appeared Wednesday afternoon for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department.
Lancaster County Woman Gets 12 Years for Exploiting Her Own ChildRead the Press Release
PHILADELPHIA - Lori Hilbourn, 30, of East Lampeter Township, PA, was sentenced today to 12 years in prison for manufacturing child pornography and distribution and possession of pornographic images that depicted her own child. In addition to the prison term, U.S. District Court Judge Jeffrey L. Schmehl ordered 15 years of supervised release and a $400 special assessment.
Hilbourn pleaded guilty, on February 27, 2015, to two counts of manufacturing and one count each of distributing and possessing child pornography. Hilbourn admitted that, beginning in December 2013 and continuing for several months, she took sexually explicit photographs of her child at the request of her then-boyfriend, George Wakeley, Jr. Using her cell phone, Hilbourn then texted the photos to Wakeley, who posted them on the Internet to his Flickr account to share with other users who wanted child pornography. On April 1, 2014, a search of Hilbourn’s cell phone pursuant to a search warrant revealed that she still possessed 15 nude and sexually explicit images of her 10-year old child.
Hilbourn must register as a sex offender. Wakely pleaded guilty to charges of receipt; distribution; and possession of child pornography. He was sentenced on September 2, 2015 to six years in prison.
The case was investigated by the East Lampeter Township Police Department with assistance from the FBI. It was prosecuted by Assistant United States Attorney Michelle Rotella.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Kennett Square Resident Charged with Illegal ReentryRead the Press Release
PHILADELPHIA - Rigoberto Zavala-Cerrato, 28, of Kennett Square, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 15, 2015, Zavala-Cerrato, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about February 4, 2010.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Frank R. Costello, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Justice Department Settles Retaliation Claim Against Louisiana Shipbuilding CompanyRead the Press Release
The Justice Department announced today that it reached an agreement with North American Shipbuilding LLC, a company located in Larose, Louisiana. The agreement resolves a complaint filed with the Justice Department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), claiming that the company retaliated against an individual for filing a charge of discrimination with OSC.
Based on its investigation, the department determined that North American Shipbuilding retaliated against an employee for filing a charge with OSC by, among other things, barring him from the company’s business facilities. The anti-discrimination provision of the Immigration and Nationality Act (INA) prohibits employers from intimidating, threatening, coercing or retaliating against workers who file a charge under the law.
Under the terms of the settlement agreement, the company has agreed, among other things, to pay a civil penalty and to offer $15,000 in back pay to the injured party. The company also has agreed to train its employees on the anti-discrimination provision of the INA and to review and revise its employment policies.
“Retaliation against employees for contacting government agencies entrusted to investigate possible violations of the law will not be tolerated,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Employees should not be afraid to speak up about their treatment in the workplace.”
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. Trial Attorney Katherine E. Lamm investigated this matter.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Investigation into 3 Los Angeles-Area Synthetic Drug Rings Leads to Arrest of 12 Linked to Manufacture and Distribution of ‘Spice’Read the Press Release
LOS ANGELES – Investigations led by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in the Los Angeles area have resulted in the arrest of a dozen defendants allegedly involved in the large-scale manufacture and distribution of synthetic narcotics that are commonly called “spice.”
The arrests on Wednesday and this morning were part of a larger, nationwide crackdown on synthetic drug distribution that the DEA labeled “Project Synergy III” (see: 151 Arrested In DEA-Led Investigation Of Synthetic Drug Rings). The law enforcement operation in Los Angeles targeted three organizations that allegedly manufactured and distributed thousands of kilograms of synthetic cannabinoids, which are designed to mimic the effects of THC, the psychoactive agent in marijuana.
Over the past several years, DEA has identified more than 400 new designer drugs in the United States – most of which are manufactured in rogue labs in China and sold on the Internet or in retail outlets such as smoke shops, gas station convenience stores and bodegas. These substances are generally sold in brightly colored packaging, marketed to young people, and billed as “safe” alternatives to marijuana or dangerous party drugs such as MDMA (ecstasy). The synthetic drugs are commonly marked with the disclaimer “not for human consumption” or “DEA approved,” which is an attempt to shield distributors from prosecution. Abuse of these psychoactive substances has resulted in increasing numbers of overdose incidents, emergency room visits and even deaths.
In the three cases in Los Angeles announced today, a total of 16 defendants are charged with manufacturing and distributing synthetic cannabinoids. The chemicals are mixed with agents – often acetone – to create a mixture that is sprayed onto plant material – typically marshmallow leaf or damania leaf – to create synthetic marijuana, which is commonly referred to as “spice” or “herbal incense.” Such synthetic cannabinoids are smoked or orally ingested, and are referred to in three indictments as smokable synthetic cannabinoids (SSCs). The SSCs discussed in the indictment were sold under brand names that included “Sexy Monkey,” “Crazy Monkey,” “Scooby Snax,” “Bizarro” and “Mad Hatter.”
“This effort highlights DEA’s commitment to toppling the reign drug traffickers hold over too many of our children,” said Anthony D. Williams, the DEA Special Agent in Charge of the Los Angeles Field Division. “Synthetic drugs are extremely dangerous substances and pose a serious threat to the health and well-being of our youth. We will continue to target and dismantle any and all drug trafficking organizations victimizing our society.”
United States Attorney Eileen M. Decker said: “These are extremely dangerous drugs, despite being falsely marketed to youth as being a ‘safe’ alternative and having innocent names like ‘spice’ and ‘K2.’ The often unknown and constantly changing chemicals in these drugs can have unpredictable and devastating effects on users. The Department of Justice takes this threat to public health and safety seriously and will prosecute purveyors of synthetic drugs as the drug traffickers that they are.”
The first case, which was the result of an investigation by the DEA, focused on companies in the “Skid Row” district in downtown Los Angeles. The indictment in this case charges seven defendants:
• Faisal Iqbal, 34, of Glendale, who was arrested yesterday;
• Sana Faisal, 32, of Glendale, Faisal Iqbal’s wife and who was arrested yesterday;
• Mohammad Iqbal, 65, of Glendale, Faisal Iqbal’s father, who is a fugitive believed to be in Pakistan;
• Fidencio Garcia Jr, 25, of North Hollywood, who was arrested yesterday;
• Ahmad Abu Farie, 54, of Huntington Beach, who was arrested yesterday;
• Mohammad Abu Farie, 25, of Huntington Beach, Ahmad Abu Farie’s son, who surrendered to authorities this morning; and
• Ehab Abu Farie, 24, of Chandler, Arizona, another son of Ahmad Abu Farie, who was arrested yesterday.
The second case investigated by the DEA focused on two individuals who had ties to the other two organizations discussed in the other indictments. The two charged in this second indictment are:
• Samia Amaninawabi, 39, of Ontario, who has agreed to surrender to authorities tomorrow; and
• Aziz Maali, 51, of Clifton, New Jersey (formerly of Monterey Park), who was arrested yesterday.
The case investigated by HSI focused on Orange County-based businesses and led to an indictment charging seven defendants. Those charged in the third indictment are:
• Adnan Bahhur, 55, of Anaheim, who has not yet been taken into custody;
• Islam Bahhur, 29, of Anaheim, Adnan Bahhur’s son, who was arrested yesterday;
• Hakeem Bahhur, 24, of Anaheim, another son of Adnan Bahhur, who has not yet been taken into custody;
• Maesa Bahhur, 44, of Greenville, South Carolina, Adnan Bahhur’s daughter, who surrendered to authorities in Los Angeles this morning;
• Mohamad Hamade, 31, of Irvine, who was arrested yesterday;
• Oun Alrzouq, 49, of Anaheim, who was arrested yesterday; and
• Yasir Harb, 55, of Romoland, California, who was arrested yesterday.
Those arrested in Southern California yesterday were arraigned Wednesday afternoon in United States District Court. All of those defendants pleaded not guilty and were ordered to stand trial later this year. Mohammad Abu Farie and Maesa Bahhur are expected to be arraigned this afternoon in Los Angeles federal court.
“Many of the precursor chemicals used to manufacture these substances are shipped from overseas and HSI is committed to working with its law enforcement partners to stop the flow into the U.S.,” said Claude Arnold, special agent in charge for HSI Los Angeles. “But beyond targeting the manufacturers and importers, it’s also imperative we get the word out – especially to young people – about the dangers, and potentially deadly consequences, of using these substances.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Most of the defendants are charged with conspiracy to manufacture, possess with intent to distribute, and distribute controlled substance analogues, a charge that carries a sentence of up to 20 years in federal prison.
More information about synthetic designer drugs can be found on the Drug Fact Sheets at www.DEAdiversion.usdoj.gov.
ISIL-Linked Hacker Arrested in Malaysia on U.S. ChargesRead the Press Release
Defendant Charged with Providing Material Support to ISIL and Computer Hacking Related to the Theft and Distribution of U.S. Military and Federal Employee Personal Information
Malaysian authorities have detained Kosovo citizen Ardit Ferizi in Malaysia on a U.S. provisional arrest warrant alleging that he provided material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and committed computer hacking and identity theft violations in conjunction with the theft and release of personally identifiable information (PII) of U.S. service members and federal employees. The criminal complaint was unsealed today. The United States is seeking his extradition to the U.S. Attorney’s Office of the Eastern District of Virginia to stand trial.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul Abbate of the FBI’s Washington, D.C.’s Field Office.
As alleged in the criminal complaint, Ferizi, also known by his hacking moniker “Th3Dir3ctorY,” is believed to be the leader of a Kosovar internet hacking group called Kosova Hacker’s Security (KHS). Ferizi hacked into the computer system of a victim company located in the United States and stole the PII of thousands of individuals. He then provided the PII of over 1,000 U.S. service members and federal employees to ISIL to be used against those employees. Between June and August 2015, Ferizi provided unlawfully obtained PII to ISIL member Junaid Hussain, aka Abu Hussain al-Britani. On Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet titled “NEW: U.S. Military AND Government HACKED by the Islamic State Hacking Division!” which contained a hyperlink to a 30-page document. That document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!” The next 27 pages of the document contained the names, e-mail addresses, e-mail passwords, locations and phone numbers for approximately 1,351 U.S. military and other government personnel. This posting was intended to provide ISIL supporters in the United States and elsewhere with the PII belonging to the listed government employees for the purpose of encouraging terrorist attacks against those individuals.
“As alleged, Ardit Ferizi is a terrorist hacker who provided material support to ISIL by stealing the personally identifiable information of U.S. service members and federal employees and providing it to ISIL for use against those employees,” said Assistant Attorney General Carlin. “This case is a first of its kind and, with these charges, we seek to hold Ferizi accountable for his theft of this information and his role in ISIL’s targeting of U.S. government employees. This arrest demonstrates our resolve to confront and disrupt ISIL’s efforts to target Americans, in whatever form and wherever they occur.”
“National security is compromised by computer intrusions, and Ferizi is charged with obtaining the personal identifying information of U.S. military and government personnel and providing it to ISIL,” said U.S. Attorney Boente. “We will investigate and prosecute these cyber-attacks to fullest extent of the law.”
If convicted, the defendant faces up to 35 years.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The investigation is being conducted by the FBI. The case is being prosecuted by Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Lynn Haaland of the Eastern District of Virginia. The Assistant Attorney General, U.S. Attorney and FBI Assistant Director thanked the Malaysian authorities for their assistance in this matter.
ISIL-Linked Hacker Arrested in Malaysia on U.S. ChargesRead the Press Release
ALEXANDRIA, Va. – Ardit Ferizi, a citizen of Kosovo, has been detained by Malaysian authorities on a U.S. provisional arrest warrant alleging that he provided material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and committed computer hacking and identity theft violations in conjunction with the theft and release of personally identifiable information (PII) of U.S. service members and federal employees. The criminal complaint was unsealed in the Eastern District of Virginia today.
According to the criminal complaint, Ferizi, also known by his hacking moniker “Th3Dir3ctorY,” is believed to be the leader of a Kosovar internet hacking group called Kosova Hacker’s Security (KHS). Ferizi hacked into the computer system of a victim company located in the United States and stole the PII of thousands of individuals. He then provided the PII of over 1,000 U.S. service members and federal employees to ISIL to be used against those employees. Between June and August 2015, Ferizi provided unlawfully obtained PII to ISIL member Junaid Hussain, aka Abu Hussain al-Britani. On Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet titled “NEW: U.S. Military AND Government HACKED by the Islamic State Hacking Division!” which contained a hyperlink to a 30-page document. That document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!” The next 27 pages of the document contained the names, e-mail addresses, e-mail passwords, locations and phone numbers for approximately 1,351 U.S. military and other government personnel. This posting was intended to provide ISIL supporters in the United States and elsewhere with the PII belonging to the listed government employees for the purpose of encouraging terrorist attacks against those individuals.
“National security is compromised by computer intrusions, and Ferizi is charged with obtaining the personal identifying information of U.S. military and government personnel and providing it to ISIL,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “We will investigate and prosecute these cyber-attacks to fullest extent of the law.”
“As alleged, Ardit Ferizi is a terrorist hacker who provided material support to ISIL by stealing the personally identifiable information of U.S. service members and federal employees and providing it to ISIL for use against those employees,” said Assistant Attorney General Carlin. “This case is a first of its kind and, with these charges, we seek to hold Ferizi accountable for his theft of this information and his role in ISIL’s targeting of U.S. government employees. This arrest demonstrates our resolve to confront and disrupt ISIL’s efforts to target Americans, in whatever form and wherever they occur.”
Ferizi faces a maximum penalty of 35 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney Lynn Haaland and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is being conducted by the FBI’s Washington Field Office.
The Assistant Attorney General, U.S. Attorney and FBI Assistant Director thanked the Malaysian authorities for their assistance in this matter.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-MJ-515.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Husband and Wife Charged in Manhattan Federal Court with Conspiring to Traffic Millions of Dollars’ Worth of Counterfeit GoodsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Glenn Sorge, the Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (“ICE”), Homeland Security Investigations (“HSI”), and Robert E. Perez, the Director of New York Field Operations for U. S. Customs and Border Protection (“CBP”), announced charges today against two individuals for conspiring to traffic in millions of dollars’ worth of counterfeit goods. Defendants LE FU CHEN, a/k/a “Tom Chen,” a/k/a “Danny Chen,” and HAI FAN HUANG, a/k/a “Cindy Huang,” are charged with importing counterfeit goods from China into the United States with the intent to distribute and sell the counterfeit products to retailers in Manhattan and elsewhere. The defendants were arrested and presented before U.S. Magistrate Judge Kevin Nathaniel Fox today.
Manhattan U.S. Attorney Preet Bharara said: “I would like to thank our partners, Homeland Security Investigations, U.S. Customs and Border Protection, and the New York City Police Department, for their outstanding investigative efforts and assistance in uncovering this alleged counterfeiting conspiracy.”
ICE HSI Acting Special Agent-in-Charge Glenn Sorge said: “This couple allegedly conspired to profit from the sale of knock offs. Fake products that infringe on business owners’ intellectual property rights cost jobs and hurts the U.S. economy. Today’s arrests and seizures embody HSI and its law enforcement partners’ commitment to disrupt the importation and sale of counterfeit goods.”
CBP Director of New York Field Operations Robert E. Perez said: “This is the second example in recent weeks where an air cargo seizure by U.S. Customs and Border Protection led to a full investigation resulting in the takedown of an elaborate criminal enterprise. It is through our interagency partnerships, and collaborative approaches like the one leading to today’s arrests, that law enforcement successfully combats modern criminal organizations.”
According to the allegations in the Complaint[1]:
From at least in or about November 2014 up to and including in or about October 2015, CHEN and HUANG, who are husband and wife, imported counterfeit luxury and designer brand goods into the United States from China. CHEN and HUANG stored the imported counterfeit goods in multiple storage units and business suites across New York with the intent to transfer the goods to retailers in Manhattan and elsewhere.
On October 15, 2015, pursuant to court-authorized search warrants, federal law enforcement agents conducted searches of CHEN and HUANG’s storage units, business suites, and residence, and found over 130,000 pieces of luxury and designer brand counterfeit goods, including watches and jewelry. The estimated loss attributable to the defendants’ efforts amounts to millions of dollars.
CHEN, 40, and HUANG, 36, of Roslyn Heights, New York, are each charged with one count of conspiring to traffic in counterfeit goods, and one count of trafficking in counterfeit goods. Each defendant faces a maximum potential sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the U.S. Department of Homeland Security, Homeland Security Investigations, and U.S. Customs and Border Protection. He also thanked the New York Police Department for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jane Kim is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Guatemalan Charged with Defrauding New Hampshire Advisor of MillionsRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced today the unsealing of fraud charges against Guatemalan businessman, Roberto Montano (a/k/a Jorge Roberto Montano Pellegrini). The charges, contained in a Criminal Complaint filed on December 29, 2014, allege that Montano defrauded a Lebanon, New Hampshire, based investment advisor and its clients who had entrusted Montano with managing client funds intended for investment in teak plantations in Guatemala. The Criminal Complaint alleges that the total loss may exceed $9 million. Montano, age 49, is a citizen of Guatemala and most recently resided in or near Guatemala City.
The Criminal Complaint specifically alleges that Montano violated the federal Wire Fraud statute by, among other things, transferring funds intended to run the teak plantations for the benefit of the investment advisor’s clients for other purposes, diverting Guatemalan government subsidies intended to benefit the teak plantations to unidentified recipients and mortgaging Guatemalan real estate assets held for the benefit of the investment advisor’s clients without the authorization or knowledge of the investment advisor or its clients.
Montano is presently a fugitive from justice. The Federal Bureau of Investigation is actively engaged in efforts to locate and apprehend him. Guatemalan prosecutors announced that, on September 17, 2015, they filed charges against Montano based upon the same conduct described in the unsealed Criminal Complaint announced today.
This case was investigated by the Bedford (N.H.) Field Office of the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Bill Morse.
The charges and allegations contained in a Criminal Complaint are only accusations.
A defendant is presumed innocent until and unless proven guilty.
Grand Jury Indicts Two in Alleged ATM Skimming SchemeRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned an indictment charging Moises Morales Cano, 31, of Astoria, NY, and Carlos Cisneros, 53, of Jackson Heights, NY, with conspiracy to commit bank fraud and aggravated identity theft, for their alleged roles in a scheme to manipulate bank ATM machines which resulted in the theft of personal information skimmed from debit cards belonging to more than 1,300 individuals and the loss of more than $709,000.
It is alleged in court documents that between January 1 and April 4, 2015, the two men conspired with one another to attach skimming devices on ATMs at banks in several communities in Rhode Island and in at least two communities in Connecticut. An ATM skimming device is a technology that directly attaches to an ATM in order to intercept unknowing customers’ debit card information from the magnetic strip on customers’ ATM cards. The customers’ PINs are obtained through the attachment to the ATM of a custom fit plastic panel above the keypad, which houses a miniature remote camera that records the customers’ fingers as they enter their PINs into the ATM. Later, the stolen debit card information and PINs are downloaded to a computer and re-encoded onto counterfeit debit cards with a magnetic encoder. The information obtained is later used to make fraudulent transactions from the accounts of unknowing victims.
It is alleged in the indictment, announced by United States Attorney Peter F. Neronha, Ted A. Arruda, Resident Agent in Charge of the Providence office of the U.S. Secret Service, and Warwick Police Chief Colonel Stephen M. McCartney, that a total of approximately 1,329 individuals had their debit cards compromised by ATM skimming devices installed by Cano and Cisneros, resulting in a total loss of approximately $709,597.50.
An indictment is merely an allegation 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.
Moises Morales Cano, who was arrested in Queens, NY, on September 9, 2014, on a federal criminal complaint charging him with conspiracy to commit bank fraud and aggravated identity theft, has been detained since his initial appearance in U.S. District Court in Providence before U.S. District Court Magistrate Judge Patricia A. Sullivan on September 18, 2015.
A federal arrest warrant has been issued for Carlos Cisneros, who is believed to have fled from the United States and is residing in Ecuador.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the United States Attorney’s Office, the U.S. Secret Service and the Warwick Police Department, with the assistance of the Smithfield, East Providence, Cranston and Johnston Police Departments.
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Contact:
Jim Martin (401) 709-5357
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Georgia Man Sentenced to 135 Months for Drug ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
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Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Stedman J. Bates, age 26, of Atlanta, Georgia, was sentenced to 135 months for conspiracy to distribute cocaine and marijuana, a violation of Title 21, United States Code, Section 846. United States District Timothy M. Cain of Anderson sentenced Bates.
The evidence at the change of plea hearing established that Bates owned and operated marijuana grow houses in California. He arranged for large quantities of marijuana to be transported to Georgia for redistribution in South Carolina. In addition, Bates also sold kilogram quantities of powder cocaine and used a stash house in Fountain Inn, South Carolina. Bates used various drug couriers to bring his product from Atlanta to Fountain Inn. Once the couriers had delivered the drugs, they would return to Georgia and turn over the money for the drugs to Bates. Law enforcement estimates that Bates arranged for upwards of 50 kilograms of cocaine to be sold in South Carolina.
The case was investigated by agents the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.