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Thursday 27 August 2015
Federal Jury Finds Former Owner of Albuquerque Smoke Shop Guilty on Synthetic Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – This afternoon a federal jury sitting in Santa Fe, N.M., found Firas Abuzuhrieh, 38, of Albuquerque, N.M., guilty on federal synthetic drug trafficking charges after a four-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Abuzuhrieh, then the owner of the Ace Smoke Shop & Hookah Lounge (Smoke Shop) located on Juan Tabo Blvd. NE in Albuquerque, and his employee Islam Kandil, 40, were arrested on Sept. 23, 2014, and charged by criminal complaint with trafficking in synthetic cannabinoids, more commonly known as “spice.” The two men were subsequently charged in a three-count indictment with conspiracy to distribute “spice.” The indictment also charged each man with distributing spice.
According to the indictment, the two men conspired to sell “spice” in Bernalillo County from Aug. 14, 2014 to Aug. 18, 2014. It also alleged that Kandil sold “spice” to an undercover DEA agent at the Smoke Shop on Aug. 14, 2014, and that Abuzuhrieh sold “spice” to an undercover DEA agent at the Smoke Shop on Aug. 18, 2014.
The indictment was superseded in July 2015 to expand the time frame of the conspiracy to cover the period between Aug. 14, 2014 and Sept. 22, 2014. The superseding indictment also added three counts of possession of “spice” with intent to distribute against Abuzuhrieh.
Kandil pled guilty on Aug. 19, 2015, to a misdemeanor information charging him with simple possession of “spice,” and admitted possessing 2.3 grams of “spice” on Aug. 14, 2014.
Abuzuhrieh elected to proceed to trial on the five-count superseding indictment. The trial began on Aug. 24, 2015, and concluded this afternoon when the jury returned a verdict finding him guilty on all five counts. The evidence at trial established that Abuzuhrieh sold “spice” to an undercover DEA agent on Aug. 18, 2014. It also established that on Sept. 22, 2014, when DEA agents arrested Abuzuhrieh, he was in possession of a key that opened a suite located in the same complex as the Smoke Shop. When the agents searched the Smoke Shop and the suite, they found approximately 62 kilograms of “spice.”
Abuzuhrieh is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a statutory maximum penalty of 20 years in prison.
Under the terms of his plea agreement, Kandil will be sentenced to 360 days in prison followed by up to one year of supervised release. He remains in custody pending a sentencing hearing which is scheduled for Sept. 17, 2015.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorneys Jennifer M. Rozzoni and Shana B. Long.
The controlled substance analogues charged in the complaints and indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Federal Grand Jury Indicts Supervisory Customs and Border Protection Officer and Wife in Alleged Alien Smuggling ConspiracyRead the Press Release
In El Paso, a federal grand jury has charged a Supervisory U.S. Customs and Border Protection Officer, his wife and a third individual for their alleged roles in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
The seven-count indictment, returned on August 19 and unsealed yesterday, charges 53–year-old SCBPO Lawrence Madrid, his 38-year-old wife, Odet Madrid-Corchado, and Maria Guadalupe Jaime-Hernandez, a 45-year-old undocumented alien residing in Las Cruces, NM, with one count of conspiracy to commit alien smuggling for financial gain and one substantive count of alien smuggling for financial gain. Lawrence Madrid is also charged with two counts of accepting a bribe. Odet Madrid and Maria Jaime-Hernandez are also charged with one count of bribery of a public official.
The indictment alleges that from August 2010 to September 2011, the defendants conspired to encourage/induce undocumented aliens to come to, enter, and reside in the United States without proper authorization. As part of the conspiracy, Lawrence Madrid allegedly accepted money for using his official position to allow undocumented aliens to be smuggled through the ports of entry in El Paso. Odet Madrid and Maria Guadalupe Jaime-Hernandez allegedly aided and abetted in offering a sum of money to CBPO Madrid to allow an undocumented alien to enter the United States without proper authorization.
The indictment was unsealed following yesterday’s arrests and Initial Appearances for Madrid-Corchado and Jaime-Hernandez. Jaime-Hernandez remains in federal custody pending a detention hearing Monday morning. Madrid-Corchado was released on a $10,000 bond. Lawrence Madrid is currently on a $20,000 bond following his arrest on July 24, 2015, on a criminal complaint filed last month in this case.
Upon conviction, the defendants face not more than ten years imprisonment on the conspiracy charge, between three and ten years imprisonment for the substantive alien smuggling charge, and not more than 15 years imprisonment for each bribery charge.
This case was investigated by the Homeland Security Investigations (HSI) together with the Department of Homeland Security Office of Inspector General Investigations. Assistant United States Attorneys Greg McDonald and Robert Almonte are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Court Says Long Wharf Pavilion May Not Be Converted into a RestaurantRead the Press Release
BOSTON – A federal court in Boston has rejected efforts by the Boston Redevelopment Authority (BRA) to convert an open-air pavilion on the end of Long Wharf into a restaurant. Siding with the National Park Service (Park Service), the court held that the end of Long Wharf is protected by a federal law requiring the land to be used for public outdoor recreation.
The case concerned the federal Land and Water Conservation Fund (LWCF) program, which is administered by the National Park Service. Since Congress enacted the LWCF Act in 1965, the Park Service has awarded over 42,000 grants totaling over $3.7 billion. A LWCF-assisted park is located in over 98 percent of counties in the United States.
Under the LWCF program, a municipality, state, or county can apply for federal money to acquire or develop a piece of land, but, in exchange, it must agree to use all or part of that land for public outdoor recreation forever. The land subject to that perpetual restriction is called the “6(f) area.” The entity applying for an LWCF grant must enclose with its application a boundary map showing the 6(f) area, and the Park Service must agree on that boundary before it awards the grant. After the boundary is agreed upon, the grant recipient may not convert the 6(f) area into something other than public outdoor recreation use unless it offers, and the Park Service accepts, substitute property of at least equal fair market value and reasonably equivalent recreation usefulness and location.
In 1980 the BRA, which owns Long Wharf, applied for a LWCF grant to help develop Long Wharf, which was then a dilapidated pier. The Park Service awarded the grant in 1981, and the BRA used the money for construction work on the wharf. Long Wharf Pavilion was later built on the northern half of the seaward tip of Long Wharf. It is an open-sided structure made of granite, brick, copper, and slate. Construction ended in 1988.
Decades later, the BRA sought to convert the pavilion into a restaurant called Doc’s Long Wharf. BRA argued that such a conversion would be permissible because, it said, the pavilion was located outside the 6(f) boundary on Long Wharf. The Park Service disagreed based upon its decision in the documents in its grant file, including a 6(f) boundary map dated 1980, which the Park Service said the BRA had enclosed with its application. The BRA denied enclosing the 1980 map with its application and claimed it had never seen that map.
The BRA sued the Park Service, challenging the Park Service’s reliance on the 1980 map. The BRA argued that a different map, dated 1983, was the 6(f) boundary map for Long Wharf.
The federal court sided with the Park Service, finding that the BRA indeed had submitted the 1980 map with its application. Because Long Wharf Pavilion is within the 6(f) boundary on Long Wharf, the BRA may not convert the pavilion into a restaurant unless it offers, and the Park Service accepts, substitute property of at least equal fair market value and reasonably equivalent recreation usefulness and location.
United States Attorney Carmen Ortiz and Michael Caldwell, Regional Director of the National Park Service made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division.
Fayette County Public Schools and U.S. Attorney’s Office Partner on Anti-Bullying Education for High School StudentsRead the Press Release
As part of its ongoing commitment to ensuring a safe and welcoming learning environment for all students, Fayette County Public Schools partnered with community leaders, law enforcement officials and the U.S. Attorney’s Office to kick-off the 2015-16 school year with an anti-bullying summit for high school students.
“Our school campuses must be safe places for all students,” said Fayette County Public Schools Superintendent Manny Caulk. “There is no room for discrimination, bullying or hate in our school district.”
The goal of Thursday’s event was to raise awareness about the harmful impact of bullying and to promote tolerance in schools. The summit specifically focused on equipping students to know how to respond if they witness bullying or are a victim of bullying.
While Fayette County Public Schools has strong policies to protect students against harassmentand bullying, national statistics from the Centers for Disease Control and Prevention report that roughly 1 in every 5 high school students has experienced bullying.
Increased education and attention to the issue has had an impact in FCPS. In the past five years, while our enrollment has risen by more than 3,000 students, the number of reported incidents of bullying or harassment in Fayette County schools has been cut nearly in half – from 1,019 incidents in the 2010-11 school year to 533 last year.
Elyria man indicted for possessing images of child sex abuseRead the Press Release
A grand jury returned a two-count indictment charging Mario Lopez Lopez, 34, of Elyria, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing child pornography, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Cleveland Field Office, Elyria Resident Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Elyria man faces child pornography chargesRead the Press Release
Fredrick Alston Thomas, 35, of Elyria, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about December 4, 2014, through on or about February 1, 2015, Thomas knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On July 23, 2015, images of child pornography were also found on his smartphone, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Elyria Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Eldorado Man Sentenced to 14 Years in Prison for Possessing Methamphetamine and A Gun in Saline CountyRead the Press Release
Joseph Scott Robertson, 45, of Eldorado, Illinois, was sentenced on August 26, 2015, in United States District Court in Benton to 14 years in prison for possessing with intent to distribute four ounces of highly pure methamphetamine (commonly known as "crystal" or "ice") and for being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The offenses occurred on August 19, 2014, in Eldorado.
Evidence introduced in support of the guilty plea and sentence showed that in August 2014 Robertson took delivery of four ounces of methamphetamine that had been sent to him through a commercial carrier service, but was intercepted by law enforcement before its delivery. The delivery to Robertson was made by an undercover law enforcement agent. A subsequent search of the residence Robertson was living in revealed $18,845 in cash which Robertson admitted was obtained from the sale of methamphetamine, delivery receipts for numerous other shipments of methamphetamine he had previously received, and a .38 caliber revolver Robertson admitted he possessed to protect his drugs and cash. Robertson had previously been convicted of several felony offenses. Laboratory tests conducted by the United States Drug Enforcement Administration showed that the methamphetamine Robertson possessed was 100% pure.
In addition to the 14 year prison sentence, Robertson was ordered to pay fines and special assessments totaling $400 to the United States and was placed on a 4 year term of supervised release to follow his incarceration. Following his sentencing, Robertson was returned to the custody of the United States Marshal, where has been held without bond since his arrest on the federal charges in December, to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the DEA. The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Deported Guatemalan Charged with Illegal Re-entry into U.S., Failing to Register as a Sex OffenderRead the Press Release
PITTSBURGH - A citizen of Guatemala was indicted on August 25, 2015, by a federal grand jury in Pittsburgh on charges of Illegal Re-Entry after Deportation and Failing to Register as a Sex Offender, United States Attorney David J. Hickton announced today.
The two-count indictment named Edward Jacinto Garcia, 30, of Guatemala, as the sole defendant.
According to the indictment, on July 6, 2015, Jacinto Garcia, an alien who, on October 6, 2011, had been deported and removed from the United States, and having unlawfully reentered the United States, was found in Butler County, Pennsylvania. The indictment also charges Jacinto Garcia with traveling in interstate commerce and failing to register as a sex offender, as required by the Sex Offender Registration and Notification Act. Jacinto Garcia’s registration requirement stems from a 2009 conviction for the crime of Sexual Assault of a Minor, 1st degree, in Platte County, Nebraska.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement, and the United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Davenport Woman Sentenced on Charge of Making False Statements in Purchase of FirearmsRead the Press Release
DAVENPORT, IA – On August 26, 2015, Jenifer Tran, age 41, was sentenced by United States District Court Chief Judge John A. Jarvey to time-served and three years of supervised release, with six months of home confinement, on a charge of making false statements during the purchase of firearms, announced United States Attorney Nicholas A. Klinefeldt. Tran was also ordered to pay $100 towards the Crime Victims Fund.
On August 14, 2014, the Davenport Police responded to a 911 call at the residence of Charles Bryan Ewert in Davenport, Iowa, in reference to a domestic disturbance. The caller related she had been physically and emotionally abused by Ewert, he had threatened to kill her, and he had multiple firearms at the residence. Davenport Police surrounded the residence and attempted to make contact with Ewert. He was uncooperative and the situation was handled as a barricaded suspect who was possibly armed. Ewert was observed by officers entering and leaving the garage during the stand-off. After about an hour, Ewert was arrested.
A search warrant was obtained for the residence and a search was conducted. Eight firearms were recovered in the garage along with a large amount of ammunition for various types and calibers of firearms including a Springfield Armory M1A, 7.62 caliber rifle, a Ruger P95, 9mm semiautomatic pistol, and a Remington 870, 12 gauge shotgun. These firearms were traced to Tran, and it was determined that the firearms were purchased by Tran for Ewert, at Ewert’s request.
When purchasing the firearms on December 11, 2011, Tran completed a federal firearm transaction form required by law. In so doing, Tran falsely answered "yes" to the question: "Are you the actual transferee/buyer of the firearms(s) listed on this form? Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual buyer, the dealer cannot transfer the firearm(s) to you.", when in fact Tran purchased the firearms for Charles Bryan Ewert.
This case was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced for Possession of FirearmsRead the Press Release
DAVENPORT, IA – On August 26, 2015, Charles Bryan Ewert, age 36, was sentenced by United States District Court Chief Judge John A. Jarvey to 84 months in prison for being a felon in possession of eight firearms and for making false statements during the purchase of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Ewert was also ordered to serve three years supervised release following the imprisonment and to pay $200 towards the Crime Victims Fund. Ewert agreed to forfeit his interest in the firearms and ammunition he illegally possessed.
On August 14, 2014, the Davenport Police responded to a 911 call at the residence of Charles Bryan Ewer in Davenport, Iowa, in reference to a domestic disturbance. The caller related she had been physically and emotionally abused by Ewert, he had threatened to kill her, and he had multiple firearms at the residence. Davenport Police surrounded the residence and attempted to make contact with Ewert. He was uncooperative and the situation was handled as a barricaded suspect who was possibly armed. Ewert was observed by officers entering and leaving the garage during the stand-off. After about an hour, Ewert was arrested. A search warrant was obtained for the residence, and a search was conducted. Eight firearms were recovered in the garage along with a large amount of ammunition for various types and calibers of firearms. The firearms include: (1) a Bushmaster Carbon 15 (AR15) .223 caliber semiautomatic rifle, (2) a Springfield 87A, .22 caliber rifle, (3) a Glock Model 22 .40 caliber semiautomatic pistol, (4) a Springfield Armory M1A, 7.62 caliber rifle, (5) a Winchester 50, 12 gauge shotgun, (6) a Winchester 12, 12 gauge shotgun, (7) a Ruger P95, 9mm semiautomatic pistol, and (8) a Remington 870, 12 gauge shotgun. Ewert was convicted in 2002 of felony eluding, a crime punishable by imprisonment for a term exceeding one year.
The Glock pistol was traced to a federal firearms licensee, who produced copies of a gun permit, driver’s license, and Form 4473 for a person with the name of a Davenport businessman. The police interviewed the Davenport businessman, who said he provided a copy of his driver’s license and copy of his gun permit to Ewert as they were jointly purchasing the firearm. He said it was Ewert who purchased the firearm using these copies. The businessman sold the Bushmaster Carbon 15 to Ewert in a separate transaction. The police re-interviewed the federal firearms licensee, who admitted that he sold the Glock pistol to Ewert after being provided the identification documents in the name of the businessman.
This case was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Clinton County Man Charged with Child Pornography OffensesRead the Press Release
Miguel Angel Vasquez Torres, 34, from Beckemeyer, Illinois, was charged in federal court by a two-count criminal complaint with distribution and receipt of child pornography, United States Attorney Stephen R. Wigginton announced today. After a detention hearing held today, Vasquez Torres was held without bond pending trial.
The offenses charged in the complaint allege that on May 4, 2015, Vasquez Torres received and distributed multiple video files containing child pornography. A trial date has not yet been set.
If convicted of distribution and/or receipt of child pornography, Vasquez Torres faces a term in federal prison of not less than five years, up to twenty years, a fine up to $250,000, and a term of supervised release of not less than five years up to life on each count.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, and the Clinton County Sheriff’s Department. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Cleveland man sentenced to more than 15 years in prison for armed robberiesRead the Press Release
A Cleveland man was sentenced to more than 15 years in prison for multiple armed robberies of Family Dollar and Dollar General stores in Northeast Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Quentin Blade, 31, was sentenced to 190 months in prison. He previously pleaded guilty to multiple counts of conspiring to interfere with commerce by means of robbery, interference with commerce by means of robbery and brandishing a firearm during and in relation to a crime of violence.
Nicholas Daniel, 24, of Cleveland, also pleaded guilty to several counts related to his role in the conspiracy. Daniel is scheduled to be sentenced next month.
Between August 6, 2014, and September 24, 2014, Blade and Daniel conspired to rob numerous retail stores in Cleveland and East Cleveland. These stores include the Dollar General at 13741 Euclid Ave., Dollar General at 5133 Superior Ave., Dollar General at 2966 E. 116 Street, Dollar General at 2272 E. 55 Street (twice), Family Dollar at 1250 E. 105 Street and Dollar General at 9111 Miles Ave, according to court documents.
Blade and Daniel carried and brandished firearms during the incidents, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, the Cleveland Division of Police, and the East Cleveland Police Department and with the assistance of the Cuyahoga County Prosecutor’s Office.
Charlotte Area Club Owner and Promoter Sentenced for Filing A False Tax Return and Money LaunderingRead the Press Release
CHARLOTTE, N.C. –U.S. District Judge Robert J. Conrad, Jr., sentenced a Charlotte area club owner and entertainment promoter on tax fraud and money laundering charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Adolph R. Shiver, 52, of Charlotte, was sentenced to nine months in prison followed by three years of supervised release, during which he will serve an additional nine months of home confinement. Shiver was also ordered to pay $28,635 as restitution to the Internal Revenue Service, and a $25,000 fine. Additionally, Judge Conrad ordered Shiver to perform 50 hours of community service. Finally, Shiver must close his nightclub, Club 935, and must not own or manage another nightclub for the duration of his sentence.
Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CID), join Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Shiver is the owner and operator of two Charlotte-based party promotion businesses, “L.A. Inc.” and “Adof Entertainment Group,” and the owner and operator of Club 935, also located in Charlotte. Court records indicate that in or about December 2013, Shiver knowingly conducted a financial transaction involving $50,000, represented to be the proceeds of unlawful activity. According to court records, Shiver planned to launder those illegal proceeds through his businesses. In addition to engaging in money laundering, in or about October 2013, Shiver filed a false tax return for tax year 2012, which understated his taxable income. According to court records, Shiver omitted from his personal and corporate tax returns gross receipts totaling $102,270, with a corresponding tax loss of $28,635.
Shiver pleaded guilty in December 2014 to one count of filing a false tax return for tax year 2012 and one count of money laundering. At today’s sentencing hearing, Shiver was ordered to report to the Federal Bureau of Prisons upon designation of federal facility. All federal sentences are served without the possibility of parole.
This prosecution is part of “Operation Jailhouse Productions,” an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The case was investigated by DEA and IRS-CID. Assistant U.S. Attorney Steven R. Kaufman coordinated on the investigation and handled the prosecution in this case.
Charleston heroin dealer pleads guilty to federal chargeRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Michael Ealm, 36, of Charleston, pleaded guilty today in federal court in Charleston to distribution of heroin. On three occasions in January, February, and March of 2015, Ealm sold heroin to an individual working as a confidential informant for the Metropolitan Drug Enforcement Network Team (MDENT). On March 4, 2015, MDENT officers executed a search warrant at Ealm’s residence in Charleston. When the officers entered the residence, Ealm was trying to flush some of the heroin down the toilet. Officers recovered additional heroin from the residence, and Ealm gave a statement admitting that he had been selling heroin in the Charleston area since January of 2015.
Ealm faces up to 20 years in federal prison when he is sentenced on December 7, 2015. United States District Judge John T. Copenhaver, Jr. is presiding over the case. MDENT conducted the investigation. Assistant United States Attorney Haley Bunn is responsible for the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Chambersburg Man Sentenced to 30 Months Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney=s Office for the Middle District of Pennsylvania announced today that U.S. District Court Chief Judge Christopher C. Conner sentenced Jerome Knight, age 35, of Chambersburg, Pennsylvania today to 30 months imprisonment in federal court in Harrisburg. Knight pleaded guilty on March 26, 2015 to distribution and possession with intent to distribute a controlled substance.
According to United States Attorney Peter Smith, Knight obtained cocaine in New York and distributed it in Chambersburg and in Maryland. When he was arrested by the Pennsylvania State Police, bags containing more than 200 grams of powder cocaine were seized from his vehicle.
This case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Meredith A. Taylor.
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California Man Sentenced for Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Darmarvis Marquel Lee, 30, of San Bernardino, Calif., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 27 months in prison followed by two years of supervised release for his heroin trafficking conviction.
Lee was arrested on Aug. 22, 2014, at the Amtrak Train Station in Albuquerque after a consensual search of his baggage by DEA agents revealed that he was in possession of 2.28 kilograms of heroin. Lee subsequently was indicted on Sept. 9, 2014, and charged with possession of heroin with intent to distribute.
On May 5, 2015, Lee pled guilty to the indictment. In his plea agreement, Lee admitted that on Aug. 22, 2014, while he was on an Amtrak train and during a stop in Albuquerque, law enforcement officers found two wrapped bundles containing heroin in his baggage. He also admitted that he was paid $4,000.00 to transport and deliver the drugs.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Rumaldo Armijo prosecuted the case.
This case was prosecuted as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
CEO of Kentwood Pharmacy, Kim Duron Mulder, Sentenced to Ten Years in Prison for Health Care FraudRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr. announced that Kim Duron Mulder, 56, formerly of East Grand Rapids, was sentenced today to ten years in prison. Mulder, the CEO of Kentwood Pharmacy, pled guilty to a conspiracy to commit health care fraud based on billing Medicare Part D Plans, Medicaid, and private insurance plans for misbranded and adulterated drugs. At a sentencing hearing in Grand Rapids, Chief U.S. District Judge Robert Jonker also ordered that Mulder serve three years of supervised release following his prison term
Following the execution of federal search warrants on November 2, 2010 and the execution of an Immediate Suspension Order by the DEA, Kentwood Pharmacy ceased operations. As a result of the subsequent investigation, a total of 18 employees at Kentwood Pharmacy were convicted of criminal offenses stemming from the practices at Kentwood Pharmacy, including the felony convictions of six licensed pharmacists. The sentences for these defendants included 14 years in prison for Richard Clarke, formerly Kentwood Pharmacy’s Vice President of Sales, for his involvement in the health care fraud conspiracy and a separate charge of possession of child pornography. Judge Jonker also sentenced chief pharmacist Lawrence Harden to six years’ imprisonment for his role in the conspiracy.
The process by which Kentwood Pharmacy returned drugs to pharmacy stock resulted in the cross-contamination of drugs, improper labeling of drugs, the placement of different drug dosages into stock bottles, and the placement of the altogether wrong drugs into stock bottles. These practices also allowed Vice President Richard Clarke to remove returned controlled substances from the pharmacy, including Vicodin and OxyContin, and sell the drugs on the street in northern Michigan.
Judge Jonker found that public and private insurers paid more $79,000,000.00 for adulterated and misbranded drugs that were sent to patients at more than 800 nursing and adult foster care homes serviced by Kentwood Pharmacy from 2006 to 2010. Based on the licensing of Kentwood Pharmacy in the name of Mr. Mulder’s wife, who had nothing to do with running the pharmacy, Judge Jonker found that the business was "conceived in fraud" and, given Mulder’s felony convictions, "should never have received a [pharmacy] license." Judge Jonker commented that Mulder "created a culture of chaos" that "created real dangers associated" with cross-contamination and generally taking controlled substances out of the traceable regulatory schemes. Judge Jonker concluded that "this was fraud, pure and simple, from the top" and "perpetrated by a person with a history of fraud."
U.S. Attorney Patrick Miles said, "The public must be able to rely on those who own and run pharmacies to operate in compliance with the federal and state laws regulating the handling, packaging, and distribution of drugs. When health care providers violate regulations meant to protect the public and then bill public and private health care insurers for such drugs, my office will pursue serious charges, including health care fraud."
"A key element of FDA’s mission to protect the public’s health is to ensure that safe and effective prescription drugs are properly distributed and accounted for via the supply chain and dispensed to the ultimate consumer. The sentence imposed today reflects the seriousness of the harm that could have been inflicted on innocent victims by the defendant’s criminal acts," said Special Agent in Charge John J. Redmond of the FDA’s Office of Criminal Investigations, Chicago Field Office. "We will continue to pursue and bring to justice those who would put the public’s health at risk by compromising the prescription drug supply chain."
"This sentence reflects the seriousness of the crimes committed by Mr. Mulder and should serve as a significant deterrence to those who may be contemplating the execution of similar healthcare fraud schemes", said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. "The OIG will continue to work diligently with our law enforcement partners to root out those who would put the public’s health and safety at risk through the commission of healthcare fraud and ensure that they are held accountable."
The investigation of this matter involved the FDA, HHS-OIG, FBI, DEA, IRS, the Michigan Attorney General’s Office and the Michigan State Police. Assistant U.S. Attorneys Ray Beckering and Adam Townshend prosecuted the case on behalf of the United States.
The investigation of this case was initiated by confidential tips. If Michigan residents or medical professionals suspect possible violations of law or other dangerous practices involving pharmacies or prescription drugs, they can contact the FDA at http://www.fda.gov/ICECI/criminalInvestigations/default.htm. To report health care fraud generally, persons can contact 1-800-HHS-TIPS.
END
Buffalo Man Arrested for Retrieving Cocaine Mailed from Puerto Rico in A Lego BoxRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Alexis Javier Centeno-Baez, 21, of Buffalo, NY, was arrested and charged by criminal complaint with conspiracy and attempt to possess with intent to distribute 500 grams or more of cocaine. Each count carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the complaint, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Buffalo. A search warrant was executed and revealed two individually wrapped kilograms of cocaine stuffed inside a LEGO box. During a controlled delivery, Centeno-Baez went to the address and retrieved the package. When Drug Enforcement Administration Agents approached to arrest him, the defendant left the package in his car and fled on foot. Agents pursued Centeno-Baez and apprehended him about three blocks away.
The defendant made an initial appearance today before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being held pending a detention hearing on September 2, 2015 at 10:00 a.m.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
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.
Brunswick Man Sentenced to over One Year on Tax ChargesRead the Press Release
Contact: Karen E. Kelly
Assistant Chief, U.S. Department of Justice, Tax Division
James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II and Acting Assistant Attorney General of the U.S. Department of Justice, Tax Division, Caroline D. Ciraolo, announced that F. William Messier, 71, of Brunswick, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to one year and a day in prison and three years of supervised release for conspiracy to defraud the U.S. by impeding and impairing the Internal Revenue Services (IRS) and corruptly endeavoring to impede the lawful administration of the tax laws. He was also fined $15,000 and ordered to file tax returns and to pay income taxes going back to 2005, which was estimated by the government to be $168,376, not including interest and penalties. The defendant and co-conspirator David E. Robinson were convicted on April 3, 2015, after a five-day jury trial.
According to trial testimony, Messier, doing business as Oak Hill Communications, earned income generated on leases from telecommunication towers located on his Brunswick property. From 1999 through 2014, Messier engaged in conduct intended to obstruct the enforcement of the Revenue laws, including providing false tax documents to customers, obstructing IRS collection activities and the extensive use of cash. In 2012, the IRS assessed taxes and interest against Messier totaling $172,094 for the tax years 2000 to 2004. Robinson claimed to be the “Interim Attorney General” of the “Maine Republic Free State” and advocated that people not pay federal and state taxes. According to the testimony of witnesses, after the IRS sent Notices of Levy to Messier’s customers, Robinson and Messier took a number of steps to obstruct and impede the IRS in the collection of the assessment, including presenting the IRS with a fake and worthless money order for the amount due by Messier. According to witness testimony, Messier and Robinson urged customers not to honor the levies or to pay the IRS, and further urged customers to pay Messier in cash to conceal their payments from the IRS, sent false documents to the IRS and sent threatening and misleading correspondence to customers of Messier’s business urging them not to cooperate with the IRS. The two also filed civil lawsuits against some of Messier’s customers and employees of the IRS, which were dismissed in separate proceedings.
In imposing the sentence, Judge Hornby said that the notion that people do not have to pay federal taxes unless they live in the District of Columbia or a federal territory or are federal employees “is a fantasy.” People who believe this notion need to understand that their conduct is wrong and deserves a prison sentence and a fine.
The case was investigated by IRS Criminal Investigation. Assistant United States Attorney James W. Chapman, and Karen E. Kelly, Assistant Chief at the Tax Division prosecuted the case.Brevard County Man Pleads Guilty to Producing PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Daniel Lester Jackson (34, Brevard County) has pleaded guilty to two counts of producing child pornography. He faces a mandatory minimum sentence of 15 years, up to 30 years, in federal prison on each count. His sentencing hearing is scheduled for November 16, 2015.
According to the plea agreement, on June 17, 2015, officers from the Palm Bay Police Department executed a search warrant at Jackson’s residence. Forensic analyses of the electronic media revealed images and videos depicting child pornography. Subsequent investigation determined that on at least two separate occasions Jackson had used his cellphone to record explicit images of a 6-year-old girl.
This case was investigated by the Federal Bureau of Investigation and the Palm Bay Police Department. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 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.
Arizona Man Indicted for Providing Material Support to Isil by Facilitating New York Man’s Travel to Syria to Receive Terrorist TrainingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that AHMED MOHAMMED EL GAMMAL, a/k/a “Jammie Gammal,” was indicted today for providing, and conspiring to provide, material support to the Islamic State of Iraq and the Levant (“ISIL”), a designated foreign terrorist organization, as well as for aiding and abetting the receipt of military-type training from ISIL and conspiring to receive such training. EL GAMMAL was arrested on Monday in Avondale, Arizona, and presented in federal court in the District of Arizona, pursuant to a criminal complaint that was unsealed yesterday in Manhattan federal court. The case is assigned to Judge Edgardo Ramos of United States District Court for the Southern District of New York.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ahmed Mohammed el Gammal actively touted online his support for ISIL and its terrorist ways, ultimately meeting and assisting a New York college student to travel to Syria to obtain military training from ISIL. Individuals like Gammal who allegedly serve as facilitators for ISIL fuel the hatred and radicalization that keep terrorist organizations like ISIL alive.”
Assistant Attorney General John P. Carlin said: “Ahmed Mohammed El Gammal is charged with conspiring to provide and providing material support to ISIL. The National Security Division’s highest priority is counterterrorism, and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
FBI Assistant Director in Charge Diego Rodriguez said: “As alleged, Gammal helped a college student in New York receive terrorist training in Syria through a contact in Turkey, in order to support ISIL. These relationships were allegedly made and solidified through the internet while Gammal was in Arizona. This is another example of how social media is utilized for nefarious and criminal purposes around the world. The identification of the conspiracy, and arrest today, demonstrate how federal and local law enforcement continue to work together to mitigate such threats globally and protect the United States.”
NYPD Commissioner William Bratton said: “This investigation demonstrates how easily people can support a terrorist organization without ever meeting, from the anonymity of their own computer and hidden behind obscure social media accounts and the veil of the internet. I commend the detectives and agents on the Manhattan based Joint Terrorism Task Force and the prosecutors of the U.S. Attorney’s Office for the Southern District for their unwavering commitment to keeping our city safe.”
As alleged in the criminal Complaint unsealed yesterday and the Indictment filed today in Manhattan federal court[1]:
In August 2014, a 24-year-old New York City resident (“CC-1”) who was growing increasingly radicalized learned via social media that EL GAMMAL had posted social media comments supportive of ISIL. Minutes later, CC-1 contacted EL GAMMAL. Over the next several months, CC-1 and EL GAMMAL continued corresponding over the Internet, although CC-1 deleted many of these exchanges.
In the midst of these communications, in October 2014, EL GAMMAL traveled to Manhattan, where CC-1 was enrolled in college, and contacted and met with CC-1. While in New York City, EL GAMMAL also contacted another co-conspirator (“CC-2”), who lived in Turkey, about CC-1’s plans to travel to the Middle East. EL GAMMAL later provided CC-1 with social media contact information for CC-2. Thereafter, EL GAMMAL and CC-2 had multiple social media exchanges about CC-1 traveling to the Middle East. In addition, CC-1 began communicating with CC-2, introducing himself as a friend of “Gammal’s.”
In late January 2015, CC-1 abruptly left New York City for Istanbul, Turkey. After CC-1 arrived in Turkey, EL GAMMAL continued to communicate with him over the Internet, providing advice on traveling toward Syria and on meeting with CC-2. After CC-1 arrived in Syria, he received military-type training from ISIL between early February and at least early May 2015.
On May 7, 2015, CC-1 reported to EL GAMMAL that “everything [was] going according to plan.”
* * *
EL GAMMAL, 42, of Avondale, Arizona, is charged with one count of providing material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison; one count of receiving military-type training from a designated foreign terrorist organization, which carries a mandatory sentence of 10 years in prison; and one count of conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five 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 defendant will be determined by a judge.
Mr. Bharara praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the NYPD. Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the U.S. Attorney’s Office for the District of Arizona, and the Phoenix Field Office of the FBI for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Brendan F. Quigley, Negar Tekeei, and Andrea L. Surratt are in charge of the prosecution, with assistance from Trial Attorney Ranganath Manthripragada of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the Indictment and the descriptions of the Complaint and the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Arizona Man Charged with Providing Material Support to ISILRead the Press Release
Ahmed Mohammed El Gammal, aka Jammie Gammal, 42, of Avondale, Arizona, was indicted today for providing and conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, as well as for aiding and abetting the receipt of military-type training from ISIL and conspiring to receive such training.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) made the announcement.
“Ahmed Mohammed El Gammal is charged with conspiring to provide and providing material support to ISIL,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism, and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“As alleged, Ahmed Mohammed el Gammal actively touted online his support for ISIL and its terrorist ways, ultimately meeting and assisting a New York college student to travel to Syria to obtain military training from ISIL,” said U.S. Attorney Bharara. “Individuals like Gammal who allegedly serve as facilitators for ISIL fuel the hatred and radicalization that keep terrorist organizations like ISIL alive.”
“As alleged, Gammal helped a college student in New York receive terrorist training in Syria through a contact in Turkey, in order to support ISIL,” said Assistant Director in Charge Rodriguez. “These relationships were allegedly made and solidified through the internet while Gammal was in Arizona. This is another example of how social media is utilized for nefarious and criminal purposes around the world. The identification of the conspiracy, and arrest today, demonstrate how federal and local law enforcement continue to work together to mitigate such threats globally and protect the United States.”
“This investigation demonstrates how easily people can support a terrorist organization without ever meeting, from the anonymity of their own computer and hidden behind obscure social media accounts and the veil of the internet,” said Commissioner Bratton. “I commend the detectives and agents on the Manhattan based Joint Terrorism Task Force and the prosecutors of the U.S. Attorney’s Office for the Southern District for their unwavering commitment to keeping our city safe.”
As alleged in the indictment returned today and the complaint unsealed yesterday in the Southern District of New York:
In August 2014, a 24-year-old New York City resident (CC-1) learned via social media that El Gammal had posted social media comments that supported ISIL. Minutes later, CC-1 contacted El Gammal. Over the next several months, CC-1 and El Gammal continued corresponding over the Internet, although CC-1 deleted many of these exchanges.
In the midst of these communications, in October 2014, El Gammal traveled to Manhattan, New York, where CC-1 was enrolled in college, and contacted and met with CC-1. While in New York City, El Gammal also contacted another co-conspirator (CC-2), who lived in Turkey, about CC-1’s plans to travel to the Middle East. El Gammal later provided CC-1 with social media contact information for CC-2. Thereafter, El Gammal and CC-2 had multiple social media exchanges about CC-1 traveling to the Middle East. In addition, CC-1 began communicating with CC-2, introducing himself as a friend of “Gammal’s.”
In late January 2015, CC-1 abruptly left New York City for Istanbul. After CC-1 arrived in Turkey, El Gammal continued to communicate with him over the Internet, providing advice on traveling toward Syria and on meeting with CC-2. After CC-1 arrived in Syria, he received military-type training from ISIL between early February and at least early May 2015.
On May 7, 2015, CC-1 reported to El Gammal that “everything [was] going according to plan.”
* * *
El Gammal is charged with one count of providing material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison; one count of receiving military-type training from a designated foreign terrorist organization, which carries a mandatory sentence of 10 years in prison; and one count of conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence, if any, will be determined by a judge.
El Gammal was arrested on Aug. 24, 2015, in Avondale, and presented in federal court in the District of Arizona, pursuant to a criminal complaint. The case is assigned to U.S. District Judge Edgardo Ramos of the Southern District of New York.
Assistant Attorney General Carlin joins U.S Attorney Bharara in praising the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force. The FBI’s Phoenix Field Office also provided valuable assistance.
The case is being prosecuted by Assistant U.S. Attorneys Brendan F. Quigley, Negar Tekeei and Andrea L. Surratt of the Southern District of New York, with assistance from Trial Attorney Ranganath Manthripragada of the National Security Division’s Counterterrorism Section. The U.S. Attorney’s Office of the District of Arizona also provided significant assistance.
The charges contained in the indictment and the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
El Gammal Indictment
Albuquerque Man Sentenced to Prison for Federal Armed Bank Robbery and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Jeremy Gabriel Trujillo, 35, of Albuquerque, N.M. was sentenced today in federal court to 130 months in prison followed by five years of supervised release for his conviction on armed bank robbery and firearms charges. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Trujillo was arrested on July 28, 2014, on a criminal complaint charging him with robbing the Bank of Albuquerque branch on Wyoming Blvd. NE in Albuquerque, N.M. The criminal complaint alleged that Trujillo robbed the bank at gunpoint that day. On Aug. 26, 2014, Trujillo was indicted and charged with being a felon in possession of a firearm and ammunition; armed bank robbery; and brandishing a firearm during a crime of violence. Court records reflect that in July 2014, Trujillo was prohibited from possessing firearms or ammunition because he previously had been convicted of at least two felony offenses.
On Dec. 11, 2014, Trujillo entered guilty pleas to Counts 2 and 3 of the indictment charging him with armed bank robbery and brandishing a firearm during a crime of violence. Trujillo admitted entering the Bank of Albuquerque branch and brandished a firearm in the direction of three bank tellers while demanding that they give him cash. After the bank tellers complied with his demands, Trujillo left the bank.
During today’s sentencing hearing, Trujillo was ordered to pay restitution to the Bank of Albuquerque. Trujillo also was ordered to pay restitution to two other Albuquerque-area banks which were robbed at gunpoint in April 2014 and May 2014.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney David M. Walsh prosecuted the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Abilene Man Sentenced to 102 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — Charles Coci, 26, of Abilene, Texas, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 102 months in federal prison, following his guilty plea in April 2015 to one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
After sentencing, Judge Solis remanded Coci, who had been on bond, into the custody of the U.S. Marshal.
According to documents filed in the case, Coci used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Coci located, downloaded and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and the U.S. Air Force Office of Special Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
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Wednesday 26 August 2015
West Seneca Man Pleads Guilty to Oxycodone DistributionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Fred Suchan, 33, of West Seneca, NY, pleaded guilty to distribution of oxycodone, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on three dates in September and October 2010, the defendant sold or attempted to sell OxyContin and Opana tablets to an undercover police officer in a commercial parking lot on Abbott Road in Orchard Park. On the last occasion, officers seized a 9 mm rifle, a loaded 9 mm magazine, and additional 9 mm ammunition from Suchan’s vehicle.
The plea is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the Orchard Park Police Department, under the direction of Chief Mark Pacholec.
Sentencing is scheduled for December 10, 2015, at 12:30 p.m. before Judge Arcara.
Virginia Man Sentenced to Two Years in Prison for Multi-State Scheme to Obtain Driver’s Licenses for Illegal AliensRead the Press Release
NEWARK, N.J. - An Alexandria, Virginia, man was sentenced today to 24 months in prison for his role in a multi-state scheme to unlawfully obtain driver’s licenses for illegal aliens, U.S. Attorney Paul J. Fishman announced.
Ho-Man Lee, 43, previously pleaded guilty before U.S. Magistrate Judge James B. Clark III to Count One of a superseding indictment charging him with conspiring to unlawfully produce identification documents. U.S. District Judge Kevin McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:Young-Kyu Park, 59, also known as “Oscar,” a former resident of Fort Lee, New Jersey, and later a resident of Los Angeles, was the leader of a criminal enterprise that operated in New Jersey, California, Nevada and Virginia (the “Park Criminal Enterprise”). The Park Criminal Enterprise provided a range of illicit services to individuals who were residing illegally in the United States, including obtaining driver’s licenses. In furtherance of the scheme, Park maintained a network of brokers in various states who helped illegal residents obtain driver’s licenses. Lee was Park’s Virginia broker.
The Park Criminal Enterprise illegally obtained driver’s licenses genuinely issued by New Jersey, New York, Virginia, Nevada, and elsewhere. To do so, it obtained, created and counterfeited a variety of documents and sold them to customers. Conspirators also escorted customers to various state motor vehicle agencies and coached them on obtaining licenses. Customers typically paid the Park Criminal Enterprise $3,000 to $4,500 for the unlawful services.
Park fraudulently obtained and sold genuine I-797 forms used by the federal government B including the U.S. Citizenship and Immigration Services (“USCIS”), a division of the Department of Homeland Security B to communicate with others or convey an immigration benefit. State agencies that issue driver’s licenses rely on the forms to verify the authenticity of an applicant’s foreign passport and to verify the applicant’s lawful presence in the United States.
Park obtained blank I-797 forms from Martin Trejo, 48, of Rialto, California, a former USCIS employee who stole batches of the forms. After obtaining the stolen forms, Park and other conspirators used a computer to print a customer’s information on the form. The Park Criminal Enterprise also altered and counterfeited other immigration documents, including passports, and created and provided fictitious documents to customers B such as fictitious utility bills and bank statements used to establish residency requirements.
Lee worked in northern New Jersey as Park’s Virginia broker. In exchange for cash, Lee met with customers, provided them with the fraudulent documents, including the fraudulent I-797 forms, and then escorted them to Virginia Department of Motor Vehicle offices to obtain licenses. Afterwards, Lee deposited the funds into bank accounts controlled by Park and kept a portion for his services.
In addition to the prison term, Judge McNulty sentenced Lee to three years of supervised release.
Park was sentenced to 72 months in prison on Jan. 8, 2015. Trejo was sentenced to 26 months in prison on Sept. 17, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly; the Department of Homeland Security, Office of Inspector General, Special Agent in Charge Gregory K. Null of the Philadelphia field office; and U.S. Citizenship and Immigration Services, under the direction of New Jersey District Director John E. Thompson, with the investigation leading to today’s sentencing.
U.S. Attorney Fishman noted the work of the N.J. Motor Vehicle Commission, under the direction of Chief Administrator Raymond P. Martinez; the Bergen County Prosecutor=s Office, under the direction of Prosecutor John L. Molinelli; and the N.J. State Police, under the direction of Colonel Joseph R. Fuentes, for their assistance.
He also thanked the FBI field offices in Los Angeles, Las Vegas, New York, Atlanta, and Richmond, Va., as well as U.S. Attorney's Offices for the District of Nevada and the Central District of California for their support.
The government is represented by Assistant U.S. Attorneys Anthony Moscato and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.Defense counsel: Paul Brickfield Esq., River Edge, New Jersey, and Joseph Horn Esq., Ridgefield Park, New Jersey
- Unsealed Indictment of Main Suspect in Khobar Towers Bombing, Ahmed Al-Mughassil, et al
Union County Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – A Union County man was sentenced today in U.S. District Court to 25 years in federal prison for producing child pornography, announced Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. Chad Landon Blume, 34, of Waxhaw, N.C., was also ordered to serve a lifetime of supervised release and to register as a sex offender. The sentence was imposed by U.S. District Judge Robert J. Conrad, Jr. of the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Union County Sheriff Eddie Cathey join Acting U.S. Attorney Rose in making today’s announcement.
According both to admissions made in connection with Blume’s guilty plea and to information introduced at sentencing, law enforcement recovered an SD Card that contained visual depictions of a minor engaging in sexually explicit conduct. Court records indicate that law enforcement determined the SD Card came from Blume’s cellular phone, which he had used to produce the child pornography on or about November 2012. During a subsequent search of Blume’s residence, agents seized Blume’s computer and other devices. A forensic analysis of those devices revealed that Blume had produced numerous sexually explicit pictures of a female minor under the age of 10. After Blume’s arrest, a second minor female came forward and disclosed that she had been molested by Blume. Blume pleaded guilty to one count of production of child pornography in December 2013.
Blume has been in federal custody since April 2013. Upon designation of a federal facility, he will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The FBI’s Crimes Against Children Squad investigated the case, assisted by the Union County Sheriff’s Office. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (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.
U.S. Attorneys and Federal Law Enforcement Leaders Conduct Summit to Target Heroin and Opioid Trafficking and Overdose EpidemicRead the Press Release
United States Attorneys and leaders of federal law enforcement agencies from across six states met in Detroit on August 26, 2015, to share strategies to combat the heroin and prescription pill epidemic across the region. The effort was announced jointly by United States Attorneys Barbara L. McQuade (Eastern District of Michigan), Kerry Harvey (Eastern District of Kentucky), Patrick A. Miles, Jr. (Western District of Michigan), Steven Dettelbach (Northern District of Ohio), Carter Stewart (Southern District of Ohio), John Kuhn, Jr. (Western District of Kentucky), David J. Hickton (Western District of Pennsylvania), William C. Killian (Eastern District of Tennessee), David Rivera (Middle District of Tennessee), Edward L. Stanton (Western District of Tennessee), William Ihlenfeld, II (Northern District of West Virginia), and R. Booth Goodwin, II (Southern District of West Virginia), Directors of High Intensity Drug Trafficking Areas (“HIDTA”) Abraham Azzam (Michigan), Derek Siegle (Ohio) and Frank Rapier (Appalachia), Drug Enforcement Administration (“DEA”) Special Agents in Charge Joseph P. Reagan (Detroit Division), Karl Colder (Washington, D.C., Division), Gary Tuggle (Philadelphia Division) and Daniel Salter (Atlanta Division), Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation (“FBI”), Detroit Field Office, Special Agent in Charge Marlon Miller, Homeland Security Investigations (“HSI”) in Detroit and Special Agent in Charge Howard Marshall, Federal Bureau of Investigation for Kentucky. Hickton co-chairs the national Heroin Task Force. The summit was called in response to the national epidemic of heroin and prescription pill abuse that has hit Michigan, Ohio, Kentucky, Tennessee, Pennsylvania and West Virginia, particularly hard. Heroin overdose deaths in the United States have tripled from 2010 to 2013. Nationally, the number of deaths from all drug overdoses exceeded 43,000 last year, more deaths than from traffic accidents. Heroin use in the United States has doubled from 2007 to 2012. In the Midwest, opioid deaths have increased 62 percent. Just since January 1, more than 60 people have died by overdose of heroin and fentanyl in Wayne and Washtenaw counties alone. The number of heroin overdose deaths in Oakland County doubled from 2013 to 2014. The summit seeks to target this national and regional problem by dismantling drug trafficking organizations that distribute heroin and prescription pills and by increasing prevention and educational efforts. One of the purposes of the summit is to discuss a regional strategic initiative as part of the federal Organized Crime Drug Enforcement Task Force program. Under this initiative, law enforcement and prosecutors across the region will investigate and prosecute the movement of heroin and prescription pills from Michigan and Ohio into Kentucky, Tennessee, West Virginia and western Pennsylvania. This effort includes action by the U.S. Attorneys’ Offices, DEA, FBI, HSI, the Bureau of Alcohol Tobacco, Firearms and Explosives (“ATF”) and the Internal Revenue Service Criminal Investigations (“IRS-CI”). As part of the initiative, the three HIDTA programs in the region (Michigan, Ohio, and Appalachia) will work with their federal, state and local partners to increase enforcement of heroin and pill trafficking and to target drug distribution that results in overdoses and deaths. The initiative also includes a commitment by each United States Attorney to engage in district-wide anti-heroin and prescription pill programs. For example, in the Eastern District of Michigan, United States Attorney Barbara McQuade has enacted Project HOPE (Heroin, Opioid Prevention and Enforcement). Project HOPE includes the targeting of drug traffickers whose distribution results in the death or overdose of the purchasers of the drugs. Project HOPE also dedicates more resources towards prosecuting heroin and pill traffickers generally. The initiative includes educational and outreach efforts to educate the public about the dangers of heroin and prescription pill abuse. United States Attorney McQuade said, “The epidemic of overdose deaths from heroin and prescription pill abuse is startling and needs to be met with an intense response by law enforcement. This summit is intended to strengthen and better coordinate our efforts to disrupt heroin and pill trafficking across the region. We also seek to raise public awareness about addiction, treatment and prevention.” Joseph Reagan, Special Agent in Charge, Drug Enforcement Administration, Detroit Division, which is responsible for Michigan, Ohio, and Kentucky, said, “The DEA welcomes this opportunity to examine best practices with our law enforcement partners and coordinate enforcement efforts. Equally important to DEA is working to increase the level of public awareness regarding the dangers of prescription drug abuse, not the least of which is the very realistic path to heroin use.”U.S. Attorneys and Federal Law Enforcement Leaders Conduct Summit to Target Heroin and Opioid Trafficking and Overdose EpidemicRead the Press Release
DETROIT – U.S. Attorneys and leaders of federal law enforcement agencies from across six states met in Detroit on August 26, 2015, to share strategies to combat the heroin and prescription pill epidemic across the region.
The effort was announced jointly by U.S. Attorneys Barbara L. McQuade, Eastern District of Michigan, Kerry Harvey, Eastern District of Kentucky, Patrick A. Miles, Jr.; Western District of Michigan, Steven Dettelbach, Northern District of Ohio, Carter Stewart, Southern District of Ohio, John Kuhn, Jr., Western District of Kentucky, David J. Hickton, Western District of Pennsylvania, William C. Killian, Eastern District of Tennessee, David Rivera, Middle District of Tennessee, Edward Stanton, Western District of Tennessee, William Ihlenfeld, II, Northern District of West Virginia, and R. Booth Goodwin, II, Southern District of West Virginia; Directors of High Intensity Drug Trafficking Areas (HIDTA) Abraham Azzam, Michigan, Derek Siegle, Ohio, and Frank Rapier, Appalachia; Drug Enforcement Administration (DEA) Special Agents in Charge Joseph P. Reagan, Detroit Division, Karl Colder, Washington, D.C. Division, Gary Tuggle, Philadelphia Division, and Daniel Salter, Atlanta Division; Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation (FBI), Detroit Field Office; and Special Agent in Charge Marlon Miller, Homeland Security Investigations (HSI), Detroit. U.S. Attorney Hickton also co-chairs the national Heroin Task Force.
The summit was called in response to the national epidemic of heroin and prescription pill abuse that has hit Michigan, Ohio, Kentucky, Tennessee, Pennsylvania and West Virginia, particularly hard. Heroin overdose deaths in the United States have tripled from 2010 to 2013. Nationally, the number of deaths from all drug overdoses exceeded 43,000 last year, more deaths than from traffic accidents. Heroin use in the United States has doubled from 2007 to 2012.
In the Midwest, opioid deaths have increased 62 percent. The summit seeks to target this national and regional problem by dismantling drug trafficking organizations that distribute heroin and prescription pills and by increasing prevention and educational efforts.
One of the purposes of the summit is to discuss a regional strategic initiative as part of the federal Organized Crime Drug Enforcement Task Force (OCDETF) program. Under this initiative, law enforcement and prosecutors across the region will investigate and prosecute the movement of heroin and prescription pills from Michigan and Ohio into Kentucky, Tennessee, West Virginia and western Pennsylvania. This effort includes action by the U.S. Attorneys’ Offices, DEA, FBI, HSI, the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF) and the Internal Revenue Service Criminal Investigations (IRS-CI). As part of the initiative, the three HIDTA programs in the region, Michigan, Ohio, and Appalachia, will work with their federal, state and local partners to increase enforcement of heroin and pill trafficking and to target drug distribution that results in overdoses and deaths.
The initiative also includes a commitment by each U.S. Attorney to engage in district-wide anti-heroin and prescription pill programs.
U.S. Attorney Killian said, “Tennessee has one of the highest rates of prescription drug abuse in the country. However, like many other states, we are now seeing a rise in heroin use as the prescription drugs are becoming more expensive and difficult to obtain. This summit was convened to help find ways to strengthen the coordinated efforts of local, state and federal law enforcement in their fight against these growing addictions and the resulting rise in overdose deaths.”
Daniel Salter, Special Agent in Charge, DEA, Atlanta Division, said, “The abuse of prescription pills, heroin, and fentanyl, an opioid 30 to 50 times more potent than heroin, has become a problem of epidemic proportions across the United States. This epidemic affects people of all backgrounds with no respect to race, gender, age, or socio-economic class. DEA and our federal, state and local law enforcement partners are committed to attacking the drug trafficking organizations that distribute these poisons in our communities without regard to the deadly consequences of their actions.”
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U.S. Attorney's Office Sponsors Fresh Start Reentry Resource FairRead the Press Release
TULSA, Okla.—The United States Attorney’s Office hosted a Fresh Start Reentry Program Resource Fair today for individuals with felony convictions to help connect them with community resource agencies and employment opportunities. Participating vendors provided information related to housing, employment, food, clothing, counseling and legal services offered in Tulsa County.
“The Fresh Start Reentry Resource Fair offered individuals with felony convictions valuable resources to help them find success in the community,” said U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. “One of the barriers to reentry is the difficulty in finding employment. A steady source of income provides stability and decreases the risk of recidivism. Today, through the collaboration with our reentry partners and local businesses, the participants took a step forward toward a “Fresh Start” in the community.”
The Resource Fair was a partnership with the United States Probation Office; Tulsa County District Attorney’s Office; the Oklahoma Department of Corrections; and the Oklahoma Department of Career and Technology Education.
In October 2013, the United States Attorney’s Office launched the Fresh Start Reentry Program. Fresh Start is dedicated to reducing criminal recidivism in the Northern District, including Tulsa, by helping individuals with felony convictions gain access to resources, and also to provide them with the necessary motivation for success when reintegrating into the community. Fresh Start is a result of the Department of Justice’s Smart on Crime Initiative.
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Two St. Thomas Residents Plead Guilty to Drug Trafficking ConspiracyRead the Press Release
St. Thomas, USVI – Hugo Ogando, 37, and Mario De Los Santos, 39, pleaded guilty in District Court on St. Thomas to conspiracy to possess cocaine with the intent to distribute, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for December 18, 2015.
According to the plea agreement filed with the court, on April 21, and 22, 2015, Ogando and De Los Santos agreed to sell 4.5 kilograms of cocaine. Members of the U.S. Drug Enforcement Administration (DEA) arrested them when they attempted the sale. The drug trafficking conspiracy charge to which they pleaded guilty carries a sentence of not less than five years and up to a maximum of 40 years in prison and a fine of $5 million.
This case is the result of an investigation by the DEA and it is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Two Ohio-Based Tax Return Preparation Business Executives Indicted for Nationwide Conspiracy and Other Tax-Related CrimesRead the Press Release
Two Ohio residents were arrested today after being indicted on Aug. 25 by a federal grand jury sitting in Dayton, Ohio, for conspiracy and tax-related crimes, announced Acting Deputy Assistant Attorney General Bruce M. Salad of the Justice Department’s Tax Division.
According to the 23-count indictment, Fesum Ogbazion, of Beavercreek, Ohio, and Kyle Wade, formerly of West Chester, Ohio, were indicted on one count of impeding the administration of the Internal Revenue Code, one count of conspiracy to commit wire fraud and five counts of wire fraud. Ogbazion is also charged with six counts of money laundering, one count of evasion of payment of employment taxes, eight counts of failure to collect and pay over employment taxes and one count of bank fraud.
According to the allegations in the indictment, Ogbazion owned and controlled ITS Financial LLC, which was the national franchisor of Instant Tax Service (ITS), a tax preparation business Ogbazion founded that claimed to have more than 1,100 franchise locations throughout the United States in 2009. Wade was the vice president of financing for ITS and owned multiple ITS franchises.
From about January 2004 through November 2012, Ogbazion and Wade executed a scheme to obstruct the Internal Revenue Service (IRS), wherein numerous ITS franchises filed false federal income tax returns without valid Forms W-2 and without the permission of their taxpayer clients. The false returns included false and inflated sole proprietorship Schedule C income in an attempt to increase the Earned Income Tax Credit. Over the course of several years, Ogbazion also instructed an ITS employee to electronically file large volumes of unsigned tax returns on the first day of the “tax filing season,” then falsely backdated customer filing authorizations. In an attempt to obstruct IRS civil compliance audits, ITS maintained and filed false documents with the IRS, including fabricated Forms W-2 created by ITS employees using tax preparation software, and forged client signatures on various false IRS forms.
From about December 2009 through November 2012, Ogbazion and Wade also conspired to generate loan and tax return preparation fees for ITS and its franchises by luring low-income and unsophisticated taxpayers into ITS franchises through a nationwide advertising campaign that offered customers tax refund anticipation loans. Despite the fact that ITS did not have an independent lender that could fund the promised loans, ITS collected loan application and tax preparation fees from its customers. For the 2011 tax filing season, Ogbazion and Wade represented to ITS staff, franchises and customers that refund anticipation loans were obtained through an independent lender, even though Ogbazion owned the purported lender, which had limited lending capabilities. Ogbazion knew that the overwhelming majority of loan applications would be denied. In total, the indictment alleges that ITS generated more than $12.5 million in fees in 2010, and more than $3.1 million in fees in 2011 from this loan scheme.
The indictment also alleges that Ogbazion was responsible for ITS’ and TaxMate LLC’s federal employment payroll taxes. He failed to pay over approximately $1.26 million in payroll taxes due from these businesses during four tax quarters in 2009 and 2010. Ogbazion also evaded the IRS’ attempts to collect ITS and TaxMate federal payroll taxes by directing business revenue to nominee accounts, placing assets in the names of nominee entities and making false statements to an IRS revenue officer during the course of collection activity, among other acts of concealment.
If convicted of impeding the administration of the Internal Revenue Code, the defendants face a statutory maximum sentence of three years in prison and a fine of up to $250,000. If convicted of conspiracy to commit wire fraud and wire fraud, the defendants face a statutory maximum sentence of 30 years in prison and a fine of up to $1 million for each count. If Ogbazion is convicted of money laundering, he faces a statutory maximum sentence of 20 years in prison and a fine of up to $500,000. If convicted of tax evasion and failure to pay over employment taxes, Ogbazion faces a statutory maximum sentence of five years in prison and up to a $250,000 fine for each count. Finally, Ogbazion faces a statutory maximum sentence of 30 years in prison and up to a $1 million fine if he is convicted of bank fraud.
The Tax Division commended the special agents of IRS-Criminal Investigation, who investigated the case, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark S. McDonald of the Tax Division and Assistant U.S. Attorney Jessica Knight of the Southern District of Ohio, who are prosecuting the case.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two Ohio-Based Tax Return Preparation Business Executives Indicted for Nationwide Conspiracy and Other Tax-Related CrimesRead the Press Release
WASHINGTON – Two Ohio residents were arrested today after being indicted on Aug. 25, by a federal grand jury sitting in Dayton, Ohio, for conspiracy and tax-related crimes, announced Acting Deputy Assistant Attorney General Bruce M. Salad of the Justice Department’s Tax Division.
According to the 23-count indictment, Fesum Ogbazion, of Beavercreek, Ohio, and Kyle Wade, formerly of West Chester, Ohio, were indicted on one count of impeding the administration of the Internal Revenue Code, one count of conspiracy to commit wire fraud and five counts of wire fraud. Ogbazion is also charged with six counts of money laundering, one count of evasion of payment of employment taxes, eight counts of failure to collect and pay over employment taxes and one count of bank fraud.
According to the allegations in the indictment, Ogbazion owned and controlled ITS Financial LLC, which was the national franchisor of Instant Tax Service (ITS), a tax preparation business Ogbazion founded that claimed to have more than 1,100 franchise locations throughout the United States in 2009. Wade was the vice president of financing for ITS and owned multiple ITS franchises.
From about January 2004 through November 2012, Ogbazion and Wade executed a scheme to obstruct the Internal Revenue Service (IRS), wherein numerous ITS franchises filed false federal income tax returns without valid Forms W-2 and without the permission of their taxpayer clients. The false returns included false and inflated sole proprietorship Schedule C income in an attempt to increase the Earned Income Tax Credit. Over the course of several years, Ogbazion also instructed an ITS employee to electronically file large volumes of unsigned tax returns on the first day of the “tax filing season,” then falsely backdated customer filing authorizations. In an attempt to obstruct IRS civil compliance audits, ITS maintained and filed false documents with the IRS, including fabricated Forms W-2 created by ITS employees using tax preparation software, and forged client signatures on various false IRS forms.
From about December 2009 through November 2012, Ogbazion and Wade also conspired to generate loan and tax return preparation fees for ITS and its franchises by luring low-income and unsophisticated taxpayers into ITS franchises through a nationwide advertising campaign that offered customers tax refund anticipation loans. Despite the fact that ITS did not have an independent lender that could fund the promised loans, ITS collected loan application and tax preparation fees from its customers. For the 2011 tax filing season, Ogbazion and Wade represented to ITS staff, franchises and customers that refund anticipation loans were obtained through an independent lender, even though Ogbazion owned the purported lender, which had limited lending capabilities. Ogbazion knew that the overwhelming majority of loan applications would be denied. In total, the indictment alleges that ITS generated more than $12.5 million in fees in 2010, and more than $3.1 million in fees in 2011 from this loan scheme.
The indictment also alleges that Ogbazion was responsible for ITS’ and TaxMate LLC’s federal employment payroll taxes. He failed to pay over approximately $1.26 million in payroll taxes due from these businesses during four tax quarters in 2009 and 2010. Ogbazion also evaded the IRS’ attempts to collect ITS and TaxMate federal payroll taxes by directing business revenue to nominee accounts, placing assets in the names of nominee entities and making false statements to an IRS revenue officer during the course of collection activity, among other acts of concealment.
If convicted of impeding the administration of the Internal Revenue Code, the defendants face a statutory maximum sentence of three years in prison and a fine of up to $250,000. If convicted of conspiracy to commit wire fraud and wire fraud, the defendants face a statutory maximum sentence of 30 years in prison and a fine of up to $1 million for each count. If Ogbazion is convicted of money laundering, he faces a statutory maximum sentence of 20 years in prison and a fine of up to $500,000. If convicted of tax evasion and failure to pay over employment taxes, Ogbazion faces a statutory maximum sentence of five years in prison and up to a $250,000 fine for each count. Finally, Ogbazion faces a statutory maximum sentence of 30 years in prison and up to a $1 million fine if he is convicted of bank fraud.
The Tax Division commended the special agents of IRS – Criminal Investigation, who investigated the case, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark S. McDonald of the Tax Division and Assistant U.S. Attorney Jessica Knight of the Southern District of Ohio, who are prosecuting the case.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two Charged with Sex Trafficking MinorsRead the Press Release
PITTSBURGH - Two residents of Allegheny County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit sex trafficking, sex trafficking of a child, and conspiracy to distribute and possess with intent to distribute heroin, United States Attorney David J. Hickton announced today.
The 11-count indictment, returned on August 11 and unsealed today, named Robert Allen Middlebrook, 40, of Clairton, Pennsylvania, and Kiari Nicole Day, 26, of Rankin, Pennsylvania, as the defendants.
According to the indictment, in February 2015, Middlebrook and Day knowingly entered into an agreement to conspire to recruit for sex trafficking four female minors who had not attained the age of 18 years. Also, in February 2015, Middlebrook and Day knowingly recruited, enticed, harbored, transported, provided and obtained four female minors, Minors A, B, C, D, to engage in commercial sex acts. The indictment further charges that in February 2015 Middlebrook conspired with others to distribute and possess with intent to distribute a quantity of heroin.
For Middlebrook, the law provides for a maximum total sentence of life imprisonment, a fine of $2,750,000, and a term of supervised release for any term of years not less than 5, and up to life, or any or all. For Day, the law provides for a sentence of not less than 10 years, nor more than life, a fine of $1,250,000, and a term of supervised release for any term of years not less than five, and up to life, or any or all. 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 defendants.
Assistant United States Attorneys Jessica Lieber Smolar and Katherine A. King are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tulsa Man Pleads Guilty to Possession of A Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CHELBI GEORGE, age 42, of Tulsa, Oklahoma, pled guilty to POSSESSION OF A COUNTERFEIT OBLIGATION, in violation of Title 18, United States Code, Section 472.
The charge arose from an investigation by the Muskogee Police Department and the United States Secret Service.
The Indictment alleges that on or about May 5, 2015, in the Eastern District of Oklahoma, the defendant, CHELBI GEORGE, did with intent to defraud, possess counterfeit obligations of the United States.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 20 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Melody Nelson represented the United States.
Truck Driver Sentenced to Federal Prison for Agreeing to Transport Women for ProstitutionRead the Press Release
In Waco today, 28-year-old Anthony Wayne Farrior of Paducah, KY, was sentenced to 51 months in federal prison for agreeing to transport women for prostitution announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Farrior pay a $1,000 fine and be placed on supervised release for a period of three years after completing his prison term.
On July 2, 2015, Farrior pleaded guilty to one count of violating the Mann Act. By pleading guilty, Farrior admitted to using the Internet and a cell phone in March 2015 to facilitate the promotion or execution of a prostitution scheme. According to court records, in February 2015, while seeking to have sexual relations with women at a truck stop in Waco, Farrior answered an advertisement placed by an undercover officer. During subsequent communications with the undercover officer, Farrior noted that he was a truck driver who traveled all over the country. Ultimately, Farrior agreed to transport and oversee women working as prostitutes at various truck stops in exchange for a portion of the money they earned for sex acts. Authorities arrested Farrior upon his arrival at a truck stop in Waco on March 6, 2015, where he previously had agreed to have sex with prostitutes and oversee them working at the truck stop for the evening.
This case was investigated by the McLennan County Sheriff’s Office. Assistant United States Attorney Mary Kucera prosecuted this case on behalf of the Government
Three Carroll County Men Plead Guilty to Role in Theft of 55 Firearms from Kings River New & Used GunsRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Timothy Brown, age 51, of Eureka Springs, Arkansas, Taz G. Bibey, age 19, of Eureka Springs, Arkansas, and Andrew T. Davis, age 26, of Eureka Springs, Arkansas, each entered a guilty plea to one count of Aiding and Abetting the Theft of Firearms from a Federal Firearms Licensee. The Honorable Chief Judge P.K. Holmes, III presided over the change of plea hearings in the United States District Court in Fort Smith.
These cases were investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Eureka Springs Police Department, the Branson, Missouri Police Department, and the Arkansas State Police. Assistant United States Attorney David Harris prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Texas Man Sentenced to 70 Months for Role in International Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Texas man has been sentenced by Chief United States District Court Judge Ralph R. Beistline to serve 70 months in prison for his role in a conspiracy to launder drug money out of the United States and into Mexico.
Jose Ramon Canales, 37, of El Paso, Texas, previously pled guilty to conspiring with others to launder the proceeds of drug trafficking internationally. As part of his plea, Canales admitted that he received nearly $100,000 in drug money, which he then worked with co-conspirators to secretly transport out of the country. Upon being released from prison, Canales will be on supervised release for two years.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, Canales was involved in longstanding conspiracies to distribute heroin and methamphetamine to Anchorage, Alaska based drug dealers and then transport the profits from those drug sales out of the United States to co-conspirators operating in Mexico. Canales joined the conspiracy by at least October 2013, when he received $70,000 in drug money from an Alaska co-conspirator. Canales then worked with Mexican co-conspirators to ship three kilograms of heroin from El Paso, Texas to Alaska for distribution.
Several months later, in March 2014, Canales received an additional $28,000 in cash sent as payment for the purchase of one kilogram of heroin. Canales later drove the funds, which he knew were the proceeds of drug trafficking, over the border into Mexico.
During the sentencing hearing, Judge Beistline described Canales’ role in the conspiracy as “integral,” noting that Canales chose to become part of a team of drug traffickers whose goals are adverse to everything Americans hold dear. In announcing the sentence, Judge Beistline also focused on the need to deter others from committing similar crimes, the need to punish people involved in criminal activity, and the need to encourage respect for societal norms.
Canales’s sentencing is one of the first related to a string of indictments returned in late 2014 and early 2015 as part of ongoing efforts to dismantle and prosecute several large scale drug trafficking rings with ties to Alaska, California, Texas, Arizona, and Mexico. An Anchorage drug distributor, Daniel Harris, was sentenced in July 2015 to serve 135 months in prison for related drug, guns, and money laundering crimes. Several other defendants are set to be sentenced in the coming months for their roles in trafficking heroin, cocaine, and methamphetamine to Alaska and then transporting the cash proceeds of their trafficking activities back to Mexico.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). In announcing the sentence, Ms. Loeffler praised the work of the law enforcement agencies involved, including the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Anchorage Police Department (APD), the Alaska State Troopers (AST), and the Anchorage Airport Police Department. Additional assistance was provided by the U.S. Attorney’s Offices for the Western District of Texas, the Eastern and Central Districts of California, and the District of Arizona, as well as federal agents in all three states.
St. Thomas Man Charged in District Court with Bulk Cash SmugglingRead the Press Release
St. Thomas, USVI – Kevin Greaves, 43, made his initial appearance on August 26, 2015, before U.S. Magistrate Judge Ruth Miller after being charged in a Complaint with bulk cash smuggling, United States Attorney Ronald W. Sharpe announced. Greaves was placed on home confinement pending further proceedings in this matter.
According to the Complaint filed on August 25, 2015, Greaves was found in possession of $118,000 in cash on August 22, 2015. The Complaint alleges that Greaves had picked up the cash from a vessel that had traveled from the British Virgin Islands to Haulover Bay on the east end of St. John. Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations (HSI) agents took Greaves into custody and seized the cash which had been stuffed into two duffle bags
Under federal law if convicted of bulk cash smuggling, Greaves faces a maximum sentence of five years in prison and forfeiture of the cash seized. This case is the result of a joint investigation by HSI and the Royal Virgin Islands Police Force. It is being prosecuted by Assistant United States Attorney Delia Smith.
United States Attorney Sharpe reminds the public that a Complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
St. Croix Man Charged in District Court with Marijuana SmugglingRead the Press Release
St. Thomas, USVI – Alva Nicholas, 56, made his initial appearance on August 23, 2015, before U.S. Magistrate Judge Ruth Miller after being charged in a Complaint with possession of 3.4 kilograms of marijuana with intent to distribute, United States Attorney Ronald W. Sharpe announced. Nicholas has been detained pending further proceedings in this matter.
According to the Complaint filed on August 23, 2015, Nicholas was arrested by Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations (HSI) agents at the Cyril E. King Airport in St. Thomas after his arrival on August 21, 2015. Agents were screening bags arriving at the airport when they detected an anomaly inside a suitcase bearing Nicholas’s name and flight tag. After further inspection, agents found 3.4 kilograms of marijuana wrapped in plastic inside the suitcase. The bag was repacked and placed on the conveyor belt. Nicholas was taken into custody after he collected the suitcase from the conveyor belt.
Under federal law if convicted of possession of marijuana with intent to distribute, Nicholas faces a maximum sentence of 5years in prison and fine of not more than $250,000. This case is the result of a joint investigation by the HSI and U.S. Customs and Border Protection (CBP). It is being prosecuted by Assistant United States Attorney Delia Smith.
United States Attorney Sharpe reminds the public that a Complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Slidell Woman Charged with Lying to Federal AgentsRead the Press Release
U.S. Attorney Kenneth Polite announced that TRACY C. HARTMAN, 49, of Slidell, was charged today in a Bill of Information with one count of making false statements.
According to the Bill of Information, on or about January 4, 2006, HARTMAN and her husband were approved for a Small Business Administration (“SBA”) disaster loan in the amount of $182,700.
TRACY HARTMAN and her husband defaulted on the SBA disaster loan. As a result of the loan default, in or about June 2010, the SBA began garnishment proceedings for Mr. Hartman’s payroll checks from St. Bernard Parish. In or about December 2011, the SBA stopped receiving the HARTMAN’s garnishment payments from St. Bernard Parish. A letter, purporting to be from the SBA, was received by St. Bernard Parish claiming the debt had been paid and to stop the garnishment. The letter was a forgery and was not prepared by the SBA. On or about April 20, 2012, TRACY HARTMAN made a false statement to federal authorities that she did not know the origin of the fraudulent letter which was hand delivered to the St. Bernard Parish government by her husband on or about November 29, 2011. After further investigation, it was determined that TRACY HARTMAN composed the letter.
If convicted, HARTMAN faces a possible maximum sentence of five years imprisonment, and/or a fine of $250,000, and up to three years of supervised release.
U.S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Small Business Administration, Office of Inspector General in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Schuele Boys Gang Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Tywone Smothers, 36, of Buffalo, pleaded guilty to conspiracy to distribute marijuana before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison, and $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June 2013 and July 2014, Smothers conspired with Damario James and others to distribute marijuana in the City of Buffalo.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Smothers is one of 28 Schuele Boys Gang members and associates arrested in this case. To date, 11 of the defendants have been convicted.
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.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Smothers will be sentenced on December 10, 2015 at 1:00 p.m. before Judge Arcara.
San Antonio Businessman Admits Role in Multi-Million Dollar Investment ScamRead the Press Release
In San Antonio today, 53-year-old Armando Jesus Hernandez Leal of Shavano Park, TX, pleaded guilty to a federal money laundering charge in connection with a multi-million dollar investment fraud scam announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
Appearing this afternoon before United States Magistrate Judge Henry Bemporad, Hernandez admitted responsibility for managing an estimated $66 million investment portfolio of a Mexican businessman and his family from 2005 to 2014, but had not invested his clients’ money like he had agreed. Hernandez spent their money to purchase homes, planes and other assets for his personal use.
Hernandez, who faces up to 20 years in federal prison, is scheduled for sentencing on November 16, 2015.
This investigation was conducted by special agents from the FBI and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
Rochester Man Charged with Firebombing StoreRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Taj Williams, 30, of Rochester, NY, was arrested and charged by criminal complaint with causing or attempting to cause malicious damage or destruction, by means of fire or explosives, of a building used in interstate commerce. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that according to the complaint, on January 18, 2015, the defendant set fire to the Chili Express convenience store at 989 Chili Avenue in Rochester using a Molotov cocktail. A fire previously occurred at the store on November 5, 2012, which ruined much of the merchandise and caused structural damage.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson and is being detained pending a court appearance on October 2, 2015, at 9:00 a.m.
The complaint is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the Rochester Fire Department, Fire Investigation Unit, under the direction of Chief John Schreiber, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rigby Men Plead Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
POCATELLO – Carlos Beltran-Vega, 56, and Francisco Vega, 40, both of Rigby, Idaho, pleaded guilty today to possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on February 16, 2015, law enforcement received information that the defendants had a large amount of methamphetamine in a cooler at a hotel in Idaho Falls, Idaho. Officers conducted surveillance on the hotel room and observed the defendants exit the hotel room and get into a vehicle. The two men had possession of a red cooler when they went from the hotel room into the vehicle. A short time later the vehicle was stopped, and a canine alerted to the presence of drugs in the cooler, where methamphetamine was found. A subsequent search of the hotel room revealed a larger amount of methamphetamine.
The charge is punishable by up to twenty years imprisonment, a term of supervised release of at least three years, and a maximum fine of $1,000,000.
Sentencing is scheduled for November 23, 2015, in Pocatello before Chief United States District Judge B. Lynn Winmill.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Idaho Falls Police Department, and Bonneville County Sheriff’s Department, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service. The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Prior Felon from Eunice Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Ramon Perez, Sr., 34, of Eunice, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 72 months in prison followed by three years of supervised release for violating federal firearms laws.
Perez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.
Perez was arrested on Nov. 17, 2014, on an indictment charging him with unlawfully possessing firearms and ammunition on Dec. 31, 2013, in Lea County, N.M. At the time, Perez was prohibited from possessing firearms and ammunition because he previously had been convicted of numerous felony offenses including possession of cocaine, discharging a firearm, possession of narcotics with intent to distribute, possession of a firearm during the commission of a felony and possession of a controlled substance.
On March 25, 2015, Perez pled guilty to the indictment and admitted possessing three pistols, two of which had obliterated serial numbers, and multiple rounds of ammunition.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lea County Drug Task Force and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Pocatello Man Sentenced for Fort Hall Casino TheftRead the Press Release
POCATELLO – Cory Hugues, 44, of Pocatello, Idaho, pleaded guilty today in United States District Court to theft of funds by an employee from a gaming establishment on Indian lands, U.S. Attorney Wendy J. Olson announced. Hugues was indicted by a federal grand jury on March 24, 2015.
According to the plea agreement, Hugues was employed at the Fort Hall Sage Hill Casino as a uniformed security guard. On January 27, 2015, he was in the cash room at the casino with another employee. The other employee, a banker, counted the money in the safe. It was then Hugues’ duty to spin the dial on the safe to ensure it was locked. Hugues did a partial spin, which appeared to lock the safe, but did not actually do so.
Surveillance video showed Hugues returning to the cash room later, opening the safe and reaching into it. He made a movement toward his left pocket area, then shut the safe, spun the dial and left the cash room.
A cash count the following day showed $2,600 missing from the safe. Hugues was interviewed on a later date by law enforcement and he ultimately confessed to taking the $2,600 from the casino safe and using it to pay bills.
The charge of theft by an employee of a gaming establishment on Indian lands is punishable by up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000.
Hugues is scheduled to be sentenced on December 1, 2015, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Pocatello Police Department.
North Miami Resident Sentenced in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A North Miami resident was sentenced to 31 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $18,469 for his participation in a stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Alexander Paul, 23, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, from February 2, 2014 to May 20, 2014, fifty-three (53) tax returns were filed from Paul’s residence claiming federal tax refunds of $109,322. The IRS paid out $18,469 in refunds on those tax returns.
A search warrant was executed at the defendant’s residence where law enforcement found and seized evidence relating to identity theft and the filing of false tax returns. Personal identification information (PII) of other individuals was found in a notebook, computer, and two cellular telephones in Paul’s bedroom. The computer also contained copies of tax returns filed in the names of other individuals.
Paul admitted to law enforcement that he possessed the PII found in the residence, that he prepared and filed the 53 tax returns electronically submitted to the IRS, and that he loaded the refunds obtained onto debit cards. The defendant did not have permission or authority to use the PII, belonging to other individuals, to prepare the tax returns.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys Daya Nathan and Brooke C. Watson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Niagara Falls Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ronald Carter, 60, of Niagara Falls, NY, who was convicted of conspiracy to distribute over 500 grams of cocaine, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between December 2010 and April 4, 2011, Carter distributed multiple quantities of cocaine in the Niagara Falls area. On April 4, 2011, officers executed a search warrant at the defendant’s 10th Street residence and seized 1.3 kilograms of cocaine, three kilograms of marijuana and $51,913 in United States currency.
The defendant was arrested along with four others. Carter is the fourth defendant to be convicted.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.