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Wednesday 12 August 2015
Former Philadelphia Police Officer Sentenced for Extortion SchemeRead the Press Release
PHILADELPHIA - Christopher Saravello, 38, of Philadelphia, PA, was sentenced today to 96 months in prison for a scheme to extort drugs and money from drug dealers and drug buyers while working as a Philadelphia Police Officer. Saravello pleaded guilty on February 6, 2015 to one count of conspiracy to commit Hobbs Act extortion and five counts of Hobbs Act extortion.
Between November 2011 and June 2012, while employed as a Philadelphia Police Officer assigned to the 6th District, Saravello conspired with others to rob drug dealers and drug buyers of cash and Oxycontin and other controlled substances. Saravello’s co-conspirators would alert him to a drug transaction. Saravello would then interrupt the planned drug transaction, driving up in a marked police vehicle, wearing a police uniform, displaying an official badge and identification, or verbally identifying himself as a police officer. He then extorted drugs or money from his victims. In two extortions, Saravello used his personal car and, rather than wearing a full uniform, wore clothing identifying himself as a police officer. During one extortion, Saravello unholstered his weapon, pointed his gun at the victim, ordered the victim to stand against a wall and threatened to shoot him if the extortion demand was not complied with. Saravello seized the money or narcotics brought to the transaction by the buyer or seller victim and shared the seized proceeds with his co-conspirators. The scheme resulted in the illegal taking of more than $9,800 in drug money and quantities of Oxycontin and other narcotics.
In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered three years of supervised release, and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Arlene Fisk.
Former New Orleans Traffic Court Chief Financial Officer Sentenced to Federal PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that VANDALE THOMAS, age 41, a resident of Prairieville, was sentenced today after being convicted by a federal jury.
U.S. District Judge Stanwood R. Duval, Jr. sentenced THOMAS to thirty-six months in federal prison followed by three years of supervised release to be served upon his release from prison. THOMAS was also ordered to make restitution in the amount of $684,065.53 to the City of New Orleans.
According to court records, after a week-long jury trial in October 2014, the former Chief Financial Officer at New Orleans Traffic Court (“Traffic Court”) was convicted on all 11 counts of theft, money laundering, and structuring transactions to evade reporting requirements. THOMAS was found guilty of three counts of theft concerning programs receiving federal funds resulting from his employment at Traffic Court. Evidence presented at trial established that on November 24, 2008, THOMAS and his accounting firm, Thomas & Thomas Accounting Services, LLC, were hired by Traffic Court to provide accounting and bookkeeping services. THOMAS’s initial agreement with Traffic Court allowed him to bill at a rate of $75.00 an hour and his contract was not to exceed $75,000 for a twelve month period. THOMAS’s billings exceeded $75,000 within the first few months of his agreement. On six additional occasions between November 24, 2008, and April 13, 2011, THOMAS received written authorization from the City of New Orleans and Traffic Court to expand the amount that he could bill. In total, the City and Traffic Court authorized THOMAS to submit invoices and receive compensation for accounting services in an amount not to exceed $627,000. However, subsequent audits by the Louisiana Legislative Auditor’s Office and the Office of the Inspector General for the City of New Orleans, and an investigation by the Federal Bureau of Investigation revealed that THOMAS submitted 174 invoices and was issued 173 checks totaling $1,311,065.53.
THOMAS was also found guilty of three counts of laundering illegal funds obtained from Traffic Court. The jury found that on September 14 and September 24, 2010, THOMAS used illegally obtained money from Traffic Court to purchase casino chips in excess of $10,000 at a New Orleans casino and THOMAS used illegally obtained money from Traffic Court to make a down payment on an $80,000 Bentley GT Coupe.
Additionally, THOMAS was found guilty of five counts of structuring transactions to evade reporting requirements. According to the evidence and testimony presented during the trial, THOMAS used numerous bank branches in order to evade federal currency transaction reporting requirements. Specifically, THOMAS went to multiple bank locations in New Orleans and Baton Rouge to structure cash withdrawals in order to evade the currency transaction reporting requirement that all transactions over $10,000 be reported by financial institutions to the Internal Revenue Service.
“Mr. Thomas has been brought to justice for defrauding our local courts and the City of New Orleans,” stated U.S. Attorney Polite. “Corruption – wherever it is found in Southeast Louisiana – will not be tolerated.”
“The residents of New Orleans and the surrounding areas are fed up with seeing individuals like Thomas steal public funds to support their personal lifestyles of extravagance,” stated Jerome R. McDuffie, Special Agent in Charge, IRS – Criminal Investigations. “The court echoed that sentiment today with the sentence they imposed on Thomas for his actions against the citizens of this great city. IRS-CI will continue to aggressively pursue individuals who engage in the theft of public funds, and will seek to have them prosecuted to the fullest extent of the law."
“Vandale Thomas’ defrauding of the New Orleans Traffic Court was first identified by the OIG as it conducted an evaluation of the Court in 2011,” stated New Orleans Inspector General Ed Quatrevaux. OIG investigators continued to work with our federal partners to bring Mr. Thomas to justice and secure restitution for the City.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations Division, and the New Orleans Office of Inspector General in investigating this matter. Assistant United States Attorneys Brian M. Klebba, Matthew Payne, Marquest Meeks, and Andre Lagarde were in charge of the prosecution.
Former Mail Carrier Sentenced for Obstruction of MailsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brian Jaszczak, 24, of Cheektowaga, NY, who was convicted of obstruction of the mails, was sentenced to time served by U.S. Magistrate Judge Jeremiah J. McCarthy.Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that Jaszczak was formerly employed by the United States Postal Service as a mail carrier. Last December, the defendant discarded mail that had been entrusted to him for delivery. A concerned citizen reported Jaszczak to authorities after capturing him on video surveillance throwing mail into a garbage tote.
The sentencing is the culmination of an investigation by Special Agents of The United States Postal Service, Office of the Inspector General, under the direction of Monica Weyler.
Former Executive Pleads Guilty to Conspiring to Bribe Panamanian OfficialsRead the Press Release
A former regional director of SAP International Inc. pleaded guilty today to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) by participating in a scheme to bribe Panamanian officials to secure the award of government technology contracts for SAP.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Acting Special Agent in Charge Thomas McMahon of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Vicente Eduardo Garcia, 65, of Miami, pleaded guilty to a one-count information charging him with conspiracy to violate the anti-bribery provisions of the FCPA. Sentencing before Senior U.S. District Court Judge Charles R. Breyer of the Northern District of California is scheduled for Dec. 16, 2015.
According to plea documents, in late 2009, SAP sought a multi-million dollar contract to provide a Panamanian state agency with a technology upgrade package. In connection with his guilty plea, Garcia admitted that, to secure the contract, he conspired with others, including advisors and consultants to SAP, to pay bribes to two Panamanian government officials, as well as to the agent of a third government official (with the understanding that at least a portion of the money would be transmitted to the third official). According to Garcia’s admissions, the conspirators used sham contracts and false invoices to disguise the true nature of the bribes. Garcia further admitted that he believed paying such bribes was necessary to secure both the initial contract and additional Panamanian government contracts.
Ultimately, SAP’s Panamanian channel partner secured the technology upgrade contract for $14.5 million, which included $2.1 million in SAP software licenses. Soon thereafter, the Panamanian government awarded SAP’s channel partner additional contracts that included the provision of SAP products.
The investigation is being conducted by FBI and the IRS-CI. The Criminal Division’s Office of International Affairs and the Securities and Exchange Commission’s Division of Enforcement, which separately announced civil charges against Garcia, provided assistance. The case is being prosecuted by Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adam A. Reeves of the Northern District of California.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Executive Pleads Guilty to Conspiring to Bribe Panamanian OfficialsRead the Press Release
SAN FRANCISCO – A former regional director of SAP International Inc. pleaded guilty today to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) by participating in a scheme to bribe Panamanian officials to secure the award of government technology contracts for SAP. U.S. Attorney Melinda Haag, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Division, and Acting Special Agent in Charge Thomas McMahon of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Vicente Eduardo Garcia, 65, of Miami, pleaded guilty to a one-count information charging him with conspiracy to violate the anti-bribery provisions of the FCPA. Sentencing before U.S. District Judge Charles R. Breyer is scheduled for December 16, 2015.
According to plea documents, in late 2009, SAP sought a multi-million dollar contract to provide a Panamanian state agency with a technology upgrade package. In connection with his guilty plea, Garcia admitted that, to secure the contract, he conspired with others, including advisors and consultants to SAP, to pay bribes to two Panamanian government officials, as well as to the agent of a third government official (with the understanding that at least a portion of the money would be transmitted to the third official). According to Garcia’s admissions, the conspirators used sham contracts and false invoices to disguise the true nature of the bribes. Garcia further admitted that he believed paying such bribes was necessary to secure both the initial contract and additional Panamanian government contracts.
Ultimately, SAP’s Panamanian channel partner secured the technology upgrade contract for $14.5 million, which included $2.1 million in SAP software licenses. Soon thereafter, the Panamanian government awarded SAP’s channel partner additional contracts that included the provision of SAP products.
The case is being prosecuted by Assistant U.S. Attorney Adam A. Reeves of the Northern District of California and Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section with the assistance of Phillip Villanueva, Maryam Beros, and Bridget Kilkenny. The investigation is being conducted by FBI and the IRS-CI. The Criminal Division’s Office of International Affairs and the Securities and Exchange Commission’s Division of Enforcement, which separately announced civil charges against Garcia, provided assistance.
Former Chief Financial Officer/Senior Vice President of Paric Construction Convicted of Fraud ChargesRead the Press Release
St. Louis, MO – BRIAN PALUCH, former Chief Financial Officer & Senior Vice President of PARIC Construction was convicted of charges involving his scheme to use the company’s corporate funds to pay his own personal expenses during the period January, 2010 through February, 2014.
According to testimony presented at trial, Paluch used the PARIC-issued American Express card to pay for personal expenses, including personal travel, dining, spa charges, electronics and personal gifts for family and friends. In order to conceal his scheme, Paluch submitted false and altered financial summaries of the monthly American Express statements by deleting and altering his own personal charges. On several occasions, Paluch forged the PARIC President’s signature on these false financial summaries as purported authorization for the payments. Additionally, as part of his employment at PARIC, Paluch was permitted to join the Sunset Country Club, and PARIC paid the monthly membership dues. Paluch, on behalf of PARIC, entered into an agreement with Sunset for the purchase of various types of apparel and golf items containing the PARIC corporate logo. Paluch created sham and inflated Sunset Country Club invoices to pay for personal items at the club unrelated to the legitimate business of PARIC. In his position as CFO, Paluch was responsible for calculating the annual bonuses for PARIC’s employees, including his own. As a further part of his scheme, Paluch inflated his base salary in calculating his own annual bonus for several years. Additionally, during summer, 2011, Paluch directed the payment of $5,000 in PARIC corporate funds to a St. Louis area law firm as an incentive for that law firm to hire his niece as a summer associate.
Paluch, Kirkwood, Missouri, was convicted by a federal jury on three counts of mail fraud. The six-day trial was held before United States District Judge Richard Webber. Sentencing has been set for November 30, 2015.
Each count carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service, the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys John Ware and Dianna Collins are handling the case for the U.S. Attorney’s Office. The victim, PARIC Construction Company, provided assistance in the investigation.
Five Naples Residents Charged for Defrauding Auto Insurance CompaniesRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of two indictments charging five individuals with conspiracy charges related to fraudulently operating chiropractic clinics that defrauded automobile insurance companies. These charges are the culmination of a two-year joint federal and state law enforcement investigation dubbed Operation Fraudulent Pain.
Garry Joseph (36), Nesly Loute (51), Wisler Cyrius (34), Anouce Toussaint (32), and Sijames Melus (32) are charged with conspiracy to commit mail fraud. Cyrius and Toussaint have also been charged with conspiracy to commit money laundering. Each charge carries a maximum penalty of 20 years in federal prison. The indictments also notify the defendants that the United States is seeking money judgments in the amount of the proceeds of the charged criminal conduct.
According to the indictment, Joseph and Melus were the true owners of two chiropractic clinics in Naples, Parkway Medical and Rehab LLC and T&C Consultants d/b/a Collier Chiropractic Center. To circumvent State of Florida licensing requirements, they paid licensed health care practitioners to allow their names to be used on official documents as though they were the true owners of the clinics. Between October 2012 and February 2015, Parkway and Collier Chiropractic submitted claims to automobile insurance companies for payment for services purportedly rendered to accident victims treated at the clinics. The true owners of the clinics caused the insurance companies to be billed for claims that violated Florida law because the clinics were not properly licensed. In addition, they caused the insurance companies to be billed for claims for unnecessary treatments and/or services that had not been actually rendered. Joseph and Melus allegedly defrauded the auto insurance companies of more than $2 million.
According to the second indictment, between June 2013 and February 2015, Cyrius, Loute, and Toussaint participated in a scheme to defraud insurance companies by filing fraudulent claims. Cyrius and Toussaint were the actual owners of Tamiami Pain and Rehab LLC and First Choice Pain and Rehab Inc. As part of the conspiracy, they paid a licensed health care practitioner to act as the owner of the clinics. The conspirators fraudulently submitted multiple claims to the insurance companies that were unlawful because the clinics were not properly licensed under Florida law and were not exempt from the Florida licensing statutes. In addition, the conspirators allegedly solicited individuals to participate in staged automobile accidents in exchange for compensation, and caused clinics that they controlled to submit claims for payment by the automobile insurance companies for unnecessary services rendered to the staged accident participants. The indictment further alleges that Cyrius and Toussaint conspired to launder the proceeds of the mail fraud by concealing the nature of the funds and by taking steps to avoid reporting requirements related to financial transactions.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the State of Florida’s Department of Financial Services Division of Insurance Fraud, the Internal Revenue Service - Criminal Investigation, and U. S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was also provided by the Florida Highway Patrol, the National Insurance Crime Bureau, the Florida Department of Health, and the State Attorneys’ Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted with the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. It will be prosecuted by Assistant United States Attorney David G. Lazarus.
Federal Jury Convicts Kurbanov on Terrorism ChargesRead the Press Release
Idaho Man Found Guilty of Conspiracy and Attempt to Provide Material Support and Possession of an Unregistered Destructive Device
A federal jury in the District of Idaho returned guilty verdicts today against Fazliddin Kurbanov, 33, on charges that he conspired and attempted to provide material support to a designated foreign terrorist organization and possessed an unregistered destructive device. The jury found the defendant not guilty on two other charges.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wendy J. Olson of the District of Idaho and Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division made the announcement.
Kurbanov’s conviction followed a 20-day trial before Senior U.S. District Court Judge Edward J. Lodge of the District of Idaho. The jury deliberated two before reaching its verdict.
“Fazliddin Kurbanov conspired to provide material support to the Islamic Movement of Uzbekistan and procured bomb-making materials in the interest of perpetrating a terrorist attack on American soil,” said Assistant Attorney General Carlin. “Thanks to the tremendous efforts of the law enforcement community and its partners, the threat posed by Kurbanov was disrupted and he will now be held accountable for his crimes. The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who provide material support to foreign terrorist organizations and seek to do harm to our country and our citizens.”
“Today’s verdict sends the clear message that where individuals intend to pursue acts of terrorism against the United States – whether in Boise, Idaho, or any other community – they will be brought to justice,” said U.S. Attorney Olson. “Protecting our communities from terrorist activity is the number one priority of this office and of the entire Department of Justice. I commend the men and women at every level of law enforcement, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“The investigation and subsequent trial of Fazliddin Kurbanov represent over three years of unrelenting effort by the FBI Southern Idaho Joint Terrorism Task Force, the U.S. Attorney’s Office for the District of Idaho, the Department of Homeland Security, the Ada County Sheriff’s Office, the Boise Police Department, and others,” said Special Agent in Charge Barnhart. “I commend the sustained dedication and commitment of all those involved in this endeavor, which have now resulted in the conviction of Kurbanov for multiple federal terrorism crimes. The Treasure Valley is a safer place as a result of this investigation and prosecution. Protecting the security of our nation and its citizens is the FBI’s highest priority.”
According to evidence presented at trial:
Between the summer of 2012 and his arrest in May 2013, Kurbanov, an Uzbek national living in Boise, communicated by email and Skype with a person or persons operating a website for the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization. Kurbanov discussed with the website administrator his animosity toward Americans, particularly the military; his desire to build a bomb; possible targets in the United States, including military bases in Idaho and Texas – and his need for instruction on how to construct and remotely detonate a bomb. Additionally, Kurbanov searched for and later discussed with an FBI confidential human source targets including military bases in the United States, specifically West Point Military Academy in New York. The website administrator asked the defendant to obtain a specific anti-virus software to protect the IMU’s website and to obtain and provide any amount of money. The defendant contacted his brother, who lived in Kyrgyzstan, about obtaining the anti-virus software and he sent the software to Kurbanov. Shortly before his arrest, the defendant caused an Idaho corporation to open, through which he intended to funnel money to the IMU.
Between at least Nov. 15, 2012, and May 16, 2013, Kurbanov possessed bomb-making components at his Boise apartment, including a hollow hand grenade, a hobby fuse, ammunition containing smokeless powder, tannerite, aluminum powder, potassium nitrate, charcoal, yellow sulfur powder and fertilizer. He purchased these items during the summer and fall of 2012. FBI special agents observed the bomb-making components during a court-authorized search of Kurbanov’s apartment in November 2012 and seized many of the same items during a second court-authorized search in May 2013.
Kurbanov’s activities were closely monitored by federal agents during the investigation and no terrorist attack occurred.
Sentencing is set for Nov. 10, 2015. Kurbanov faces a maximum of 15 years in prison on each of the conspiracy and attempt counts, and 10 years in prison for possession of an unregistered destructive device.
In addition, Kurbanov faces a separate one-count indictment in federal court in Utah alleging that from about Jan. 14, 2013, continuing through Jan. 24, 2013, he taught and demonstrated how to make explosive devices, and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction. His alleged intent was that the teaching, demonstration and information be used for, and in furtherance of, an activity that would constitute a federal crime of violence. The Utah indictment was returned in May 2013, at the same time as the Idaho indictment.
The case was investigated by the FBI’s Joint Terrorism Task Force with assistance from the Boise Police Department, the Department of Homeland Security, Immigration and Customs Enforcement’s Homeland Security Investigations, the Ada County, Idaho, Sheriff’s Office and the Canyon County, Idaho, Sheriff’s Office.
The case is being prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco of the District of Idaho and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
Federal Inmate Convicted of Assaulting a Correctional OfficerRead the Press Release
PANAMA CITY, FLORIDA – Late yesterday, a federal trial jury convicted Kenneth Hobson, 33, of Memphis, Tennessee, of knowingly assaulting and injuring a correctional officer at the Federal Correctional Institution in Marianna. The verdict was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in July 2014, Hobson forcibly assaulted a corrections officer after the officer attempted to search him for possession of contraband. During the assault, Hobson delivered multiple punches to the officer’s face and body, punching and kicking the officer as he was rendered unconscious. The officer fell to the ground, and Hobson continued to punch and kick him. The officer sustained contusions to his face and jaw, a fractured cheek bone, and a loose tooth.
Hobson faces a maximum of 20 years in prison. Sentencing has been scheduled for November 10, 2015, at 9:00 a.m. at the United States Courthouse in Panama City, Florida. The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Kathryn D. Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Father of Former Investment Bank Managing Director Pleads Guilty to Insider Trading ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT STEWART, the father of former investment bank managing director Sean Stewart, pled guilty today to participating in a conspiracy to trade on inside information about several mergers and acquisitions announced between 2011 and 2014. ROBERT STEWART was arrested on May 14, 2015, and Sean Stewart surrendered to federal authorities that same day. Charges against Sean Stewart remain pending before U.S. District Judge Laura Taylor Swain. A third member of the charged conspiracy, cooperating witness Richard Cunniffe, pled guilty before Judge Swain on May 12, 2015, and awaits sentencing. ROBERT STEWART is scheduled to be sentenced by Judge Swain on November 12.
Manhattan U.S. Attorney Preet Bharara said: “Instead of teaching his son lessons of right and wrong, Robert Stewart worked with him to break the law by trading on nonpublic information and sharing in the benefits with him. Robert Stewart’s criminal actions – to which he has pled guilty today – perpetuate the unfortunate perception that the markets are rigged in favor of those with connections.”
According to the agreement pursuant to which ROBERT STEWART entered his plea of guilty today, the underlying criminal Complaint filed May 13, 2015, the Superseding Indictment filed July 15, 2015, and statements made during court proceedings:
In early 2011, Sean Stewart, who at the time held the position of Vice President in the Healthcare Investment Banking Group of a global bank headquartered in Manhattan (“Investment Bank A”), began tipping his father, ROBERT STEWART, with nonpublic information about upcoming mergers and acquisitions. The first of these deals involved the acquisition of Kendle International Inc. (“Kendle”) by INC Research, LLC, which was announced publicly on May 4, 2011. Sean Stewart worked on the deal, representing Kendle. ROBERT STEWART made about $7,900 in profits on purchases of Kendle stock executed in February and March of 2011. When questioned by the Securities and Exchange Commission about his Kendle trades in May 2013, ROBERT STEWART reported that he used the proceeds of those trades to pay expenses related to Sean Stewart’s June 2011 wedding.
The second deal about which Sean Stewart tipped ROBERT STEWART was the acquisition of Kinetic Concepts Inc. (“KCI”) by Apax Partners, announced on July 13, 2011. Although ROBERT STEWART purchased some stock in KCI based on Sean Stewart’s tip, he sold that stock before the acquisition was announced, around the same time that Sean Stewart learned the Financial Industry Regulatory Authority was conducting an inquiry into ROBERT STEWART’s Kendle trading.
Also around this time, in the spring of 2011, ROBERT STEWART expressed a concern to co-conspirator and cooperating witness Richard Cunniffe that ROBERT STEWART was “too close to the source” to be trading in KCI stock in his own account, and asked Cunniffe to make purchases of KCI call options for ROBERT STEWART in Cunniffe’s brokerage account. Cunniffe agreed to do so, and also mirrored for his own benefit the KCI trades that ROBERT STEWART was directing.
When the KCI/Apax Partners deal was announced, ROBERT STEWART and Cunniffe reaped profits totaling approximately $107,790. At around this time, ROBERT STEWART told Cunniffe that the source of the KCI tip and the earlier Kendle tip had been ROBERT’s son. Later, around the spring of 2012, ROBERT STEWART clarified for Cunniffe that the son in question was Sean Stewart, who worked on the “sell side” on Wall Street.
In October 2011, Sean Stewart left Investment Bank A. A few months later, he joined an investment banking advisory firm headquartered in Manhattan (“Investment Bank B”) as a Managing Director.
During Sean Stewart’s tenure with Investment Bank B, based on tips concerning nonpublic acquisition-related information supplied by Sean Stewart, ROBERT STEWART had Cunniffe conduct options trading in advance of the public announcements of three more deals: (1) the acquisition of Gen-Probe Inc. by Hologic Inc., announced on April 30, 2012; (2) the acquisition, by tender offer, of Lincare Holdings Inc. (“Lincare”) by Linde AG, announced on July 1, 2012; and (3) the acquisition of CareFusion Corp. (“CareFusion”) by Becton, Dickinson & Co. (“Becton”), announced on October 5, 2014. Investment Bank B represented Hologic Inc. in connection with its acquisition of Gen-Probe Inc.; Linde AG in connection with its acquisition of Lincare; and CareFusion in connection with its acquisition by Becton. The profits that ROBERT STEWART and Cunniffe reaped from illegal insider trading in advance of the announcements of these three deals totaled approximately $1.1 million. In the midst of the scheme, in December 2012, ROBERT STEWART transferred at least $15,000 to Sean Stewart.
To try to avoid detection for their crimes, ROBERT STEWART and Cunniffe refrained from speaking explicitly about their trading over the phone or e-mail, sometimes using “golf”-related code. For example, shortly after the announcement of Lincare’s proposed acquisition by Linde AG, a German company, ROBERT STEWART wrote to Cunniffe that he had seen a news story about the “high cost of golf reservations since a foreign company purchased all-even more expensive than imagined.” Other steps ROBERT STEWART and Cunniffe took to avoid detection included trying to discuss their trading at face-to-face meetings and adopting a profit-splitting mechanism that had Cunniffe paying ROBERT STEWART his portion of the illegal proceeds in small increments, over time, typically in cash.
In March and April of 2015, Cunniffe recorded meetings he had with ROBERT STEWART. During one such meeting, ROBERT STEWART accepted a payment of $2,500 cash from Cunniffe, which was the balance of the proceeds owed to ROBERT STEWART for profitable trading executed in Cunniffe’s account in advance of the CareFusion acquisition announcement. Also during this meeting, ROBERT STEWART admitted that Sean Stewart once chastised him for failing to make use of a tip, saying, “I can’t believe I handed you this on a silver platter and you didn’t invest in it.”
* * *
ROBERT STEWART, 60, of North Merrick, New York, pled guilty to Count One of a nine-count Superseding Indictment. Count One charges a conspiracy to commit insider trading and carries a maximum term of five years in prison. As part of his guilty plea, ROBERT STEWART agreed to forfeit $150,000. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the investigative work of the FBI and also thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Sarah E. McCallum and Brooke E. Cucinella are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and Sean Stewart is presumed innocent unless and until proven guilty.
FCI Gilmer inmate convicted, sentenced for unlawful possession of heroinRead the Press Release
CLARKSBURG, WEST VIRGINIA – Parker Breckenridge, 39, an inmate at the Federal Correctional Institution at Gilmer, was convicted and sentenced today for unlawful possession of heroin inside the prison, United States Attorney William J. Ihlenfeld, II, announced.
Breckenridge was discovered in December 2014 in unlawful possession of heroin while incarcerated at FCI Gilmer. He was sentenced today to an additional two months in prison.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Special Investigative Services Unit at FCI Gilmer led the inquiry.
U.S. District Judge Irene M. Keeley presided.
Emory Professor Arraigned on Child Pornography ChargesRead the Press Release
ATLANTA – Kevin M. Sullivan, a professor in Emory University’s Epidemiology Department, has been arraigned on federal charges of receiving and possessing child pornography.
“Sullivan is charged with downloading images that record the sexual abuse of children,” said U.S. Attorney John Horn. “We remain committed to the primary goal of Project Safe Childhood, which is to protect children by finding and prosecuting those who exploit children through child pornography.”
“HSI special agents are dedicated to tracking down the consumers of child pornography wherever they might be in an effort to stop the senseless rape of children that supplies this perverse demand,” said Special Agent in Charge Nick S. Annan, head of ICE Homeland Security Investigations in Atlanta. “Child predators come from all walks of life, as the accused in this case clearly demonstrates. This investigation is a credit to the close working relationships HSI has built with law enforcement agencies around the world, including the Georgia Bureau of Investigation and the Swiss Fedpol in this case, to protect innocent children.”
“This case demonstrates the need for law enforcement to remain vigilant in the pursuit of people who exploit children. Dr. Sullivan’s life took a turn from helping people through his work in Epidemiology to exploiting children, utilizing the Wi-Fi at Emory University. The GBI’s top priority continues to be working crimes against children, regardless of who the offenders are,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Horn, the charges, and other information presented in court: In October 2014, Swiss law enforcement seized a server that was hosting child pornography. Login information from the server showed that someone at Emory University Rollins School of Public Health was using Emory’s Wi-Fi to access child pornography. With cooperation from Emory University’s Information Technology Department, agents were able to determine that Dr. Kevin Sullivan, a professor in Emory University’s Epidemiology department, was the person accessing child pornography from a Swiss website.
Based on this information, agents obtained and then executed a search warrant on June 15, 2015, at the defendant’s office. Sullivan was present when the agents arrived, but left before agents found child pornography on his personal laptop and external hard drive. When agents went to Sullivan’s house later the same day to arrest him, they found him attempting to erase the hard drive from his home desktop computer.
Kevin M. Sullivan, 60, of Atlanta, Georgia, was indicted by a federal grand jury on August 5, 2015. Today he was arraigned before U.S. Magistrate Judge Alan J. Baverman on those charges.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation.
Assistant U.S. Attorney Paul R. Jones and Special Assistant U.S. Attorney Erin E. Sanders are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Drug Courier Guilty of Moving Meth LoadRead the Press Release
LAREDO, Texas – A Laredo man has entered a guilty plea to possessing with intent to deliver 3.26 kilograms of methamphetamine, announced U.S. Attorney Kenneth Magidson. Manuel Mendoza, 35, pleaded guilty today before U.S. Magistrate Judge J. Scott Hacker.
At the hearing, Mendoza admitted his guilt. He confirmed that while driving in Laredo on June 4, 2015, he was pulled over by a police officer for not having an operating brake light. Mendoza gave the officer consent to search the interior of his vehicle, at which time the officer discovered three packages totaling approximately 3.27 kilograms (approximately seven pounds) of methamphetamine in a backpack. He then admitted to special agents with Homeland Security Investigations (HSI) that he was a drug courier taking the drug load to another person and that he expected to be paid.
Mendoza has been in custody since his arrest on June 4, 2015, where he will remain pending his sentencing hearing to be set in near future before Senior U.S. District Judge Kazen. At the time of that hearing, Mendoza faces a minimum of 10 years and up to life in federal prison as well as a possible fine of up to $10 million.
The investigation leading to the charges was conducted by HSI with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez is prosecuting the case.
Davis Man Sentenced to 87 Months, $3.2 Million Restitution and $3.2 Million Judgment for Bank FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ROY LYNN WESBERRY, age 55, of Davis, Oklahoma, was sentenced to 87 months imprisonment, $500 Special Monetary Assessment, $3,216,031.22 in restitution, and $3,200,000 Money Judgment in federal court.
The defendant was indicted in February 2014 and charged with Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Section 1349 and 4 counts of Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 2. A jury found WESBERRY guilty of the charges in October 2014.
The jury also found that the defendant should forfeit $3,200,000.00 in assets as part of any sentence imposed.
The Indictment alleged that from on or about February 1, 2011, through February 28, 2011, the exact dates unknown to the Grand Jury, ROY LYNN WESBERRY, defendant herein, and others unknown and known to the Grand Jury, knowingly conspired, agreed and confederated to execute and attempt to execute, a scheme and artifice to defraud First National Bank of Davis, a federally insured national bank.
Testimony at the trial established that WESBERRY and W.A. “Dub” Moore, President of First National Bank of Davis (FNB), committed bank fraud in an attempt to hide from bank examiners, large amounts of loans to WESBERRY from First National Bank of Davis.
Additional evidence proved that during a bank examination on February 7, 2011, the Office of Comptroller of Currency (OCC) discovered the WESBERRY loans. Those loans caused the bank to be critically undercapitalized and on March 11, 2011 FNB was closed and the Federal Deposit Insurance Corporation was named receiver of the bank.
W.A. “Dub” Moore pled guilty to bank fraud on February 24, 2014, and was sentenced to 24 months imprisonment.
The charges are a result from an investigation by the United States Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over hearing. The defendant will report to the Bureau of Prisons on September 29, 2015, where he will serve his nonparolable sentence.
Assistant United States Attorney’s Melody Nelson represented the United States.
Coral Springs Resident Pled Guilty to Stealing Government MoneyRead the Press Release
A Coral Springs resident has pled guilty to stealing government money.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.
Lenord Williams, 28, of Coral Springs, Florida, pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641. At sentencing, Williams faces a maximum statutory sentence of ten years in prison and forfeiture of stolen funds.
According to court documents, on August 25, 2012, probation officers conducted a planned compliance search of Williams’ residence and discovered eight United States Treasury checks, worth $41,638.40, in Williams’ nightstand in other individuals’ names. Seven of the checks were payments of tax refunds, and the other check was a monthly Social Security payment. The defendant admitted that he has someone cash the unauthorized checks for him.
Williams is scheduled to be sentenced on October 23, 2015 at 10:00 a.m. before United States District Judge James I. Cohn.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department. This case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
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.
Cleveland women indicted for stealing identities and filing false taxesRead the Press Release
Two Cleveland women were indicted for a conspiracy in which they stole other people’s identities and collected more than $326,000 in false tax returns, law enforcement officials said.
Named in the 43-count criminal indictment are Michelle D. Pugh, a/k/a Michelle Morman, 38, and Joi C. Tate, 37. They are charged with conspiracy to defraud the government, making false, fictitious and fraudulent claims for income tax refunds, theft of public funds and aggravated identity theft.
“This duo is charged with stealing money from the government and identifying information from customers,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“These defendants stole identities and enriched themselves as if the IRS was their personal ATM,” said Troy Stemen, Acting Special Agent-in-Charge, IRS-Criminal Investigation, Cincinnati Field Office. “Our agents remain vigilant and will continue to work with the U.S. Attorney’s Office to root out these bad actors and bring them to justice.”
The indictment alleges that Pugh and Tate, acting together and with others, engaged in a false tax refund scheme in which they prepared at least 25 false income tax returns for the years 2010 and 2011, for approximately 20 people including Pugh, which claimed income tax refunds that were greater than the actual refunds, if any, to which the taxpayers were entitled.
Pugh, Tate and others gathered personal identification information used in filing the returns either by posing as legitimate tax preparers working through Pugh’s company, MP Tax Services, or through a network of associates. In some cases, Pugh and Tate obtained and used personal identification information of individuals without their knowledge of consent. Pugh and Tate did not list themselves as the actual tax preparer on any of the tax returns they filed in others’ names.
On each return, Pugh, Tate and their cohorts generated false refund claims, at least in part, by reporting a falsely inflated or fictitious wage income and a resulting false earned income credit. On some returns, Pugh, Tate and their confederates also claimed false dependents and/or reported false education and child tax credits, as reflected on fictitious Forms 8863 and 8812 filed with the IRS.
Pugh and Tate filed the returns electronically on behalf of taxpayers, through private and public internet connections. Generally, they did not provide a copy of the return to the taxpayer, and the taxpayer did not know the amount of the refund claimed or was told an incorrect amount. In the case of those individuals whose identities were used without their knowledge or permission, Pugh and Tate did not inform them that they received funds from the IRS and instead kept the proceeds for themselves.
The electronic filings included requests that the IRS direct-deposit refunds into bank accounts owned or controlled by Pugh. After receiving the refunds, Pugh, Tate and their co-conspirators paid only a portion of the refund, if any, to the taxpayer.
According to the indictment, Pugh’s, Tate’s and their co-conspirators’ falsely inflated refund claims on the returns filed in the scheme resulted in the delivery of approximately $326,265 in illicit refunds to the conspirators.
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, the defendants’ roles in the offense and the characteristics of the criminal conduct. In all cases, the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the IRS – Criminal Investigations.
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 the defendant guilty beyond a reasonable doubt.
Cleveland man indicted for cocaine conspiracyRead the Press Release
A Cleveland man was indicted for conspiring to possess with intent to distribute at least five kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Milner, 31, was named in the two-count indictment. He is accused of conspiring with others to distribute at least five kilograms of cocaine between March and May 2015, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the U.S. Postal Service’s Office of Inspector General.
If convicted, the defendant’s sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
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.
Burnell Allen, Leader of the Allen Gang, Sentenced to Life in PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BURNELL ALLEN, age 35, and SONNY ALLEN, age 32, both of New Orleans, were sentenced today after being convicted by a federal jury.
U.S. District Judge Stanwood R. Duval, Jr. sentenced BURNELL ALLEN to life imprisonment for conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base “crack.” SONNY ALLEN was sentenced to 240 months imprisonment for being a member of that crack conspiracy and four 120 concurrent sentences for distributing crack.
Evidence was presented at trial that the defendants grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years. The majority of this activity took place near an older relative’s home.
“As we did in the prosecution of the Allen gang, our Office will continue to pursue the harshest penalties possible against those who terrorize our communities through violence,” stated U.S. Attorney Polite.
ATF Special Agent in Charge Constance Hester stated, “The Citizens of New Orleans, in particular Central City, can be assured that ATF will continue to utilize all available resources to pursue the most violent offenders who use firearms to conduct criminal activity.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.
Assistant U.S. Attorneys Sean Toomey and Andre Lagarde were in charge of the prosecution.
Buffalo Police Officer Facing Another Civil Rights 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 Corey Krug, 40, of Buffalo, NY, was who was recently charged by criminal complaint with deprivation of rights under color of law, has now been indicted by a federal grand jury on another charge of deprivation of rights under color of law involving a separate incident. The defendant was also charged with filing a false report. These new charges carry a maximum penalty of 10 years in prison and fine of $250,000.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that according to the indictment, on August 29, 2010, while on duty, the defendant used unreasonable and excessive force against an individual identified as M.W. Later that day, Krug filed a use of force report but failed to disclose that he struck the victim during the incident with an “impact weapon” causing bodily injury.
On August 12, 2015, Krug was charged by criminal complaint with deprivation of rights under color of law. According to that complaint, in the early morning hours of November 27, 2014 (Thanksgiving Day), the defendant pushed an individual known as D.F. to the ground on Chippewa Street, pushed his knee onto D.F’s chest and used his night stick to strike the victim repeatedly in the legs causing pain, swelling and bruising.
Krug will make an initial appearance on the complaint on August 28, 2015 at 2:00 p.m. at which time he will also be arraigned on the charge included in the indictment.
Today’s indictment is the culmination of an investigation by the Federal Bureau of Investigation and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.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.
Buffalo Police Officer Charged with Using Excessive Force on Chippewa Street Early Thanksgiving MorningRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Corey Krug, 40, of Buffalo, NY, was charged by criminal complaint with deprivation of rights under color of law. The charge carries a maximum penalty of 10 years in prison and fine of $250,000.Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that according to the complaint, in the early morning hours of November 27, 2014 (Thanksgiving Day), an individual known as D.F. was standing in a parking lot on Chippewa St. in downtown Buffalo when he was accosted by a uniformed police officer identified as the defendant.
The complaint states that Krug grabbed D.F., pushed the victim against a car parked in the lot, and pushed D.F. to the ground. While the victim was on the ground, the defendant pushed his knee onto D.F’s chest and used his night stick to strike the victim repeatedly in the legs causing pain, swelling and bruising.
The complaint further states that according to D.F., the victim heard another police officer tell Krug to stop. The defendant stopped hitting D.F. and did not arrest the victim. Once D.F. stood up, he realized his cell phone fell out of his pocket on the ground near Krug. The defendant stomped on the phone before kicking it towards D.F.
The confrontation was captured on video by WKBW Channel 7 and was reviewed by FBI Special Agents.
The defendant will make an initial appearance at a later date. Krug is currently suspended by the Buffalo Police Department.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
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.
Buffalo Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Mica Donadelle, 43, of Buffalo, NY, pleaded guilty to conspiracy to distribute five kilograms or more of cocaine before U.S. District Judge William M. Skretny. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life, and a $10,000,000 fine.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that on January 27, 2011, the defendant, along with co-defendants Kevin Liburd and James Phillips, conspired to avoid the detection of $162,300 at the Buffalo Niagara International Airport. The defendants met at parking lot across the street from the airport at which time, Donadelle gave the money to Phillips. An airport employee at the time, Phillips bypassed screening procedures and stored the money in an airport bathroom which was later picked up by Liburd.
In addition, between 2006 and December 2012, Donadelle conspired with Liburd, Phillips, and Renwick Samuel and Angel Gonzalez, to distribute cocaine in the City of Buffalo.
Phillips, Liburd, Samuel and Gonzalez have been convicted and are awaiting sentencing.Today’s plea is the culmination of an investigation on the part of the Safe Streets Task Force of the Federal Bureau of Investigation which includes the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cheektowaga Police Department; Erie County Sheriff’s Office; Hamburg Police Department; Lancaster Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; U.S. Border Patrol; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
Brownwood, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Michael Thomas Franks, 43, of Brownwood, Texas, appeared this afternoon before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to an indictment charging one count of possession of prepubescent child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Franks, who remains on bond, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to plea documents filed in the case, Franks used computers at his residence to search the Internet for images and videos of child pornography. In the course of his searches, Franks located, downloaded, and viewed numerous images and videos of child pornography. He also transferred some of the child pornography from his computer to a computer disk that bore the handwritten label, “Pictures Videos,” which contained one or more images of prepubescent child pornography.
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 (ICE) Homeland Security Investigations (HSI); the U.S. Marshals Service; U.S. Customs and Border Protection’s (US CBP) Office of Air and Marine; and the Brown County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
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Bogalusa Chiropractor Sentenced for Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID LEE KILLEN, age 44, a resident of Covington and a former chiropractor, was sentenced today after previously pleading guilty to health care fraud.
U.S. District Judge Sarah S. Vance sentenced KILLEN to 44 months imprisonment, to be followed by 3 years of supervised release. KILLEN is presently in state custody serving 60 months on charges of domestic abuse battery involving strangulation. Judge Vance ordered that all but 24 months of the federal sentence be served concurrently with the state sentence. The Court ordered restitution in the amount of $183,674.14 to five different insurance companies.
According to court documents, KILLEN owned and operated Back on Track Clinic, LLC, a chiropractic clinic in Bogalusa. KILLEN billed insurers for chiropractic services, back braces, and X-rays that he did not provide. KILLEN also billed insurers for expensive allergy tests, the antigen leukocyte antibody test, otherwise known as an “ALCAT.” KILLEN either did not render the ALCATs or used it to incentivize his patients, bartering for reduction in co-payments or erasing co-payment balances if the patient would agree to the test. KILLEN also fraudulently billed insurers for services using physician provider numbers without authorization, or on days when the physicians were not working in his clinic.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the United States Department of Health and Human Service’s Office of Inspector General in investigating this matter. The case was prosecuted by Assistant United States Attorney Patrice Harris Sullivan.
Beckley man sentenced in federal court for heroin distributionRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that a Beckley man was sentenced in federal court in Beckley distribution of heroin. John Lee Jenkins, 51, of Beckley, was sentenced to a 14-month term of imprisonment, followed by a 3-year term of supervised release. Jenkins previously pled guilty in April, 2015, to distributing heroin.
On November 11, 2014, Jenkins sold heroin to a person who was cooperating with law enforcement authorities. The drug deal took place on Stanaford Road in Beckley, West Virginia.
This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force and is being prosecuted under the Beckley Pill Initiative directed by the United States Attorney’s Office.
This case is 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 pills and heroin in communities across the Southern District.
Beckley man sentenced in federal court for distributing cocaineRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that a Beckley man was sentenced in federal court in Beckley for distribution of cocaine. Bryan Cross, 31, of Beckley, was sentenced to twelve years and seven months in prison, followed by a 3-year term of supervised release. Cross previously pled guilty in April of 2015, to distributing a quantity admitting that he had sold cocaine to a person who was cooperating with law enforcement authorities. The drug deal took place on Canterbury Drive in Beckley, Raleigh County, West Virginia. This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force.
Baltimore Co-Conspirator Admits to Robbing Seven StoresRead the Press Release
Baltimore, Maryland – Darryl Norris, age 36, of Baltimore, pleaded guilty today to robbing a video game store, and admitted to six other robberies.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on September 24, 2014, Norris and two co-conspirators entered the Game Stop at 8067 Liberty Road in Baltimore, pointing fake guns which appeared to be real weapons at an employee. The robbers demanded that the employee open the register, from which they took money. The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as $7,833.79 in cash and merchandise.
Norris admitted to committing six other robberies with co-conspirators from August 26 to September 27, 2014, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; Cappy Cleaners on Belair Road in Baltimore; The Summit at Owings Mills, in Owings Mills, Maryland; Royal Farms on Wilkens Avenue and another Royal Farms on Keswick Road, both in Baltimore; and 7-Eleven on Pleasant Plains Road in Towson, Maryland. The total loss from these robberies was $5,650.36.
Norris and the government have agreed that if the Court accepts the plea agreement, Norris will be sentenced to 108 months in prison. U.S. District Judge George L. Russell III has scheduled sentencing for October 16, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Bakken Organized Crime Strike Force' Leads to Indictment of 29 Defendants for Drug Related Offenses in ND and CaliforniaRead the Press Release
BISMARCK - Acting U. S. Attorney Christopher C. Myers, in conjunction with U. S. Attorney Benjamin B. Wagner (Eastern District of California); ND Attorney General Wayne Stenehjem; Special Agent in Charge (SAC) Richard Thornton (Minneapolis FBI), and Chief Greg Williamson, Bakersfield Police Department, announced the indictment of 22 individuals in western North Dakota and 7 defendants in Bakersfield, California.
On June 3, 2015, the "Bakken Organized Crime Strike Force," was formally announced by Acting U.S. Attorney Myers, Attorney General Stenehjem, Organized Crime and Drug Enforcement Task Force (OCDETF) Director Bruce Ohr and Montana U.S. Attorney Mike Cotter. The indictments are a result of ‘Operation Western Edge’, an OCDETF investigation into the trafficking of methamphetamine and heroin from Bakersfield, California to Bakken region.
Acting U.S. Attorney Chris Myers noted: "The Strike Force was designed to work as one unit to identify, target and dismantle criminal organizations working in the Bakken and reach beyond the borders of North Dakota to ensure the entire criminal organization is brought to justice. After only a few months we are seeing the efficiency, strength and extended reach provided by the Strike Force model. The results here are exactly what we hoped for when we designed the Strike Force."
U.S. Attorney Benjamin Wagner remarked: "Cross-jurisdictional cooperation is essential for effective narcotics enforcement. We are grateful to the U.S. Attorney’s Office for the District of North Dakota for its leadership in this case, and to our state and federal law enforcement colleagues in both states for their professionalism and assistance."
Attorney General Wayne Stenehjem stated: "These are the results we can expect with the cooperative efforts as exemplified by the Bakken Strike Force. This investigation involved over two years of diligent efforts by various state, local and federal enforcement agencies, including the Bureau of Criminal Investigation under my authority. I am committed to continuing our joint efforts with the US Attorney’s office and the FBI, not just through the Bakken Strike Force but on other enforcement operations."
SAC Richard Thornton said: "The FBI is committed to the security of the Bakken area of North Dakota. We will continue to aggressively investigate organized crime wherever it may be found. We will work with our law enforcement partners, through the ‘Bakken Organized Crime Strike Force’, to ensure that those who engage in this type of criminal activity pay a high price."
Greg Williamson, Chief of Police, Bakersfield, CA: "The Bakersfield Police Department is proud to have been a part of this investigation. Criminals pay no attention to jurisdictional lines, and when a criminal enterprise crosses several states it can quickly exceed the resources of local agencies. That’s when the capabilities of the federal authorities become invaluable in making a difference in our city’s streets and neighborhoods. We are happy to have had this opportunity to work with our law enforcement partners in North Dakota and the Federal Bureau of Investigation. We are looking forward to assisting the United States Attorney’s office in North Dakota in following through and seeing justice done in this matter."
Defendants Indicted in North Dakota:
Ronnie Ray Taylor, 43, Bakersfield, CA
Terrance Darshay Lynn Peterson, a/k/a Turtle, 42, Minot, ND
Victor Murillo, a/k/a Vic, 32, Bakersfield, CA
Debra Meladore Davis, 49, Minot, ND
Bryan Keith Davis, 48, Minot, ND
Regina Rose Lehman, 43, Minot, ND
Michael John Gietl, 43, (currently in federal custody)
Robert Raymond Althaus, 44, Minot, ND
Peggy Lee St. Claire, 53, Minot, ND
Jade Marie Backman, 33, Minot, ND
Jody Lee Deharty, 25, Minot, ND
Ricky Dean Strahan, 56, Minot, ND
Gerald Wayne Osby Jr., 22, Minot, ND
James Alex Locklear, 27, Minot, ND
Alyssa Jo Schlienz, 21, Minot, ND
Audra Dezzari Harris, 39, Minot, ND
Gilbert Eugene Graim, Jr., 21, Bakersfield, CA
Teoshalashanae M. Songcuan, 24, Bakersfield, CA
Deandre Trayvon Peterson, 24, Minot, ND
Jimmy Dale Price, 42, Minot, ND
Miranda Leigh Grant, 30, Minot, ND
Rodney Lee Jackson, 49, Carson, CA
AUSA Rick Volk is prosecuting these cases for the District of North Dakota.
Defendants Indicted in the Eastern District of California:
Ricardo Cruz Gomez, 23, Bakersfield, CA
Marquiz Demitric Tucker, 44, Bakersfield, CA
Labrea Leshawn Davis, 29, Bakersfield, CA
Robin Lee, 25, Bakersfield, CA
Nina Johnson, 35, Bakersfield, CA
Michael Muniz, 43, Bakersfield, CA
Ruben Valdez, Jr., 37, Bakersfield, CA
AUSA Brian Delaney is prosecuting these cases for the Eastern District of California.
The indictments from both Districts, recently unsealed, are merely accusations and the defendants are presumed innocent unless proven guilty.
The case is being investigated by the Federal Bureau of Investigation, North Dakota Bureau of Criminal Investigation, Bakersfield Police Department, Minot Police Department, Ward County Sheriff’s Office, Ward County Narcotics Task Force, Drug Enforcement Administration, Metro Area Narcotics Task Force, North Dakota Highway Patrol, and United States Border Patrol.
Bakken Organized Crime Strike Force Leads to Indictment of 29 Defendants for Drug-Related Offenses in North Dakota and CaliforniaRead the Press Release
Acting U. S. Attorney Christopher C. Myers of the District of North Dakota, in conjunction with U.S. Attorney Benjamin B. Wagner of the Eastern District of California, Attorney General Wayne Stenehjem of North Dakota, Special Agent in Charge Richard Thornton of the FBI’s Minneapolis Division and Chief Greg Williamson of the Bakersfield Police Department, announced the indictment of 22 individuals in western North Dakota and seven defendants in Bakersfield, California.
On June 3, 2015, the Bakken Organized Crime Strike Force was formally announced by Acting U.S. Attorney Myers, North Dakota Attorney General Stenehjem, Director Bruce Ohr of the Organized Crime and Drug Enforcement Task Force (OCDETF) and U.S. Attorney Mike Cotter of the District of Montana. The indictments are a result of Operation Western Edge, an OCDETF investigation into the trafficking of methamphetamine and heroin from Bakersfield to the Bakken region.
“The strike force was designed to work as one unit to identify, target and dismantle criminal organizations working in the Bakken, and reach beyond the borders of North Dakota to ensure the entire criminal organization is brought to justice,” said Acting U.S. Attorney Myers. “After only a few months we are seeing the efficiency, strength and extended reach provided by the strike force model. The results here are exactly what we hoped for when we designed the strike force.”
“Cross-jurisdictional cooperation is essential for effective narcotics enforcement,” said U.S. Attorney Wagner. “We are grateful to the U.S. Attorney’s Office for the District of North Dakota for its leadership in this case, and to our state and federal law enforcement colleagues in both states for their professionalism and assistance.”
“These are the results we can expect with the cooperative efforts as exemplified by the Bakken Strike Force,” said North Dakota Attorney General Stenehjem. “This investigation involved over two years of diligent efforts by various state, local and federal enforcement agencies, including the Bureau of Criminal Investigation under my authority. I am committed to continuing our joint efforts with the U.S. Attorney’s Office and the FBI, not just through the Bakken Strike Force, but on other enforcement operations.”
“The FBI is committed to the security of the Bakken area of North Dakota,” said Special Agent in Charge Thornton. “We will continue to aggressively investigate organized crime wherever it may be found. We will work with our law enforcement partners, through the Bakken Organized Crime Strike Force, to ensure that those who engage in this type of criminal activity pay a high price.”
“The Bakersfield Police Department is proud to have been a part of this investigation,” said Chief Williamson. “Criminals pay no attention to jurisdictional lines and when a criminal enterprise crosses several states it can quickly exceed the resources of local agencies. That’s when the capabilities of the federal authorities become invaluable in making a difference in our city’s streets and neighborhoods. We are happy to have had this opportunity to work with our law enforcement partners in North Dakota and the FBI. We are looking forward to assisting the U.S. Attorney’s Office in North Dakota in following through and seeing justice done in this matter.”
Defendants indicted in North Dakota:
- Ronnie Ray Taylor, 43, of Bakersfield;
- Terrance Darshay Lynn Peterson, aka Turtle, 42, of Minot, North Dakota;
- Victor Murillo, aka Vic, 32, of Bakersfield;
- Debra Meladore Davis, 49, of Minot;
- Bryan Keith Davis, 48, of Minot;
- Regina Rose Lehman, 43, of Minot;
- Michael John Gietl, 43, in federal custody;
- Robert Raymond Althaus, 44, of Minot;
- Peggy Lee St. Claire, 53, of Minot;
- Jade Marie Backman, 33, of Minot;
- Jody Lee Deharty, 25, of Minot;
- Ricky Dean Strahan, 56, of Minot;
- Gerald Wayne Osby Jr., 22, of Minot;
- James Alex Locklear, 27, of Minot;
- Alyssa Jo Schlienz, 21, of Minot;
- Audra Dezzari Harris, 39, of Minot;
- Gilbert Eugene Graim Jr., 21, of Bakersfield;
- Teoshalashanae M. Songcuan, 24, of Bakersfield;
- Deandre Trayvon Peterson, 24, of Minot;
- Jimmy Dale Price, 42, of Minot;
- Miranda Leigh Grant, 30, of Minot; and
- Rodney Lee Jackson, 49, Carson, California.
Assistant U.S. Attorney Rick Volk is prosecuting these cases for the District of North Dakota.
Defendants Indicted in the Eastern District of California:
- Ricardo Cruz Gomez, 23, of Bakersfield;
- Marquiz Demitric Tucker, 44, of Bakersfield;
- Labrea Leshawn Davis, 29, of Bakersfield;
- Robin Lee, 25, of Bakersfield;
- Nina Johnson, 35, of Bakersfield;
- Michael Muniz, 43, of Bakersfield; and
- Ruben Valdez Jr., 37, of Bakersfield.
Assistant U.S. Attorney Brian Delaney is prosecuting these cases for the Eastern District of California.
The indictments from both districts were recently unsealed and are merely accusations; the defendants are presumed innocent unless proven guilty.
The case is being investigated by the FBI, the North Dakota Bureau of Criminal Investigation, the Bakersfield Police Department, the Minot Police Department, the Ward County, North Dakota, Sheriff’s Office, the Ward County Narcotics Task Force, the Drug Enforcement Administration, the Metro Area Narcotics Task Force, the North Dakota Highway Patrol and the U.S. Border Patrol.
Arrests Target Methamphetamine Trafficking from Bakersfield to Oil Fields in North DakotaRead the Press Release
SACRAMENTO, Calif. — U. S. Attorney Benjamin B. Wagner, Acting U. S. Attorney Christopher C. Myers (District of North Dakota), North Dakota Attorney General Wayne Stenehjem, Special Agent in Charge Richard Thornton (Minneapolis FBI), Special Agent in Charge Monica M. Miller (Sacramento FBI) and Bakersfield Chief of Police Greg Williamson announced indictments of 22 individuals in western North Dakota and seven defendants in Bakersfield on drug trafficking charges.
The indictments are a result of an investigation by the North Dakota-based Bakken Organized Crime Strike Force, which was formed to address organized crime arising from the oil boom in the Bakken region in North Dakota.
According to court documents, from June 2014 until June 2015, defendants in Bakersfield and Minot, North Dakota conspired to bring methamphetamine and heroin from Bakersfield and distribute it in Minot. The seven defendants charged in the Eastern District of California were all arrested in the Bakersfield area by FBI agents and Bakersfield police officers Tuesday morning.
Acting U.S. Attorney Chris Myers stated: “The Strike Force was designed to work as one unit to identify, target and dismantle criminal organizations working in the Bakken and reach beyond the borders of North Dakota to ensure the entire criminal organization is brought to justice. After only a few months we are seeing the efficiency, strength and extended reach provided by the Strike Force model. The results here are exactly what we hoped for when we designed the Strike Force.”
U.S. Attorney Benjamin Wagner remarked: “Cross-jurisdictional cooperation is essential for effective narcotics enforcement. We are grateful to the U.S. Attorney’s Office for the District of North Dakota for its leadership in this case, and to our state and federal law enforcement colleagues in both states for their professionalism and assistance.”
Greg Williamson, Chief of Police, Bakersfield stated: “The Bakersfield Police Department is proud to have been a part of this investigation. Criminals pay no attention to jurisdictional lines, and when a criminal enterprise crosses several states, it can quickly exceed the resources of local agencies. That’s when the capabilities of the federal authorities become invaluable in making a difference in our city’s streets and neighborhoods. We are happy to have had this opportunity to work with our law enforcement partners in North Dakota and the Federal Bureau of Investigation. We are looking forward to assisting the United States Attorney’s office in North Dakota in following through and seeing justice done in this matter.”
Two indictments charge seven Bakersfield residents in the Eastern District of California as follows:
Ricardo Cruz Gomez Jr., 23, conspiracy, distribution of methamphetamine;
Marquiz Demitric Tucker, 44, conspiracy, possession with the intent to distribute methamphetamine, racketeering;
Labrea Leshawn Davis, 29, possession with the intent to distribute methamphetamine, racketeering;
Robin Lee, 25, possession with the intent to distribute methamphetamine, racketeering;
Nina Johnson, 35, possession with the intent to distribute methamphetamine, racketeering; (Docket # 1:15-cr-209 LJO); and
Michael Muniz, 43, and Ruben Valdez Jr., 37, conspiracy to distribute methamphetamine and distribution of methamphetamine.
(Docket # 1:15-cr-211 LJO)Assistant United States Attorney Brian Delaney of the Bakersfield office is prosecuting these cases in the Eastern District of California.
If convicted, the defendants face a statutory penalty of 10 years to life in prison and a $10,000,000 fine for the conspiracy, up to 20 years in prison and a $1 million fine for possession with the intent to distribute methamphetamine, and up to five years in prison and a $250,000 fine for racketeering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The indictment unsealed on Tuesday in North Dakota charges the following 22 defendants with trafficking methamphetamine and heroin, firearms offenses and money laundering:
Ronnie Ray Taylor, 43, Bakersfield;
Terrance Darshay Lynn Peterson, aka Turtle, 42, Minot, North Dakota;
Victor Murillo, aka Vic, 32, Bakersfield;
Debra Meladore Davis, 49, Minot;
Bryan Keith Davis, 48, Minot;
Regina Rose Lehman, 43, Minot;
Michael John Gietl, 43, Minot;
Robert Raymond Althaus, 44, Minot;
Peggy Lee St. Claire, 53, Minot;
Jade Marie Backman, 33, Minot;
Jody Lee Deharty, 25, Minot;
Ricky Dean Strahan, 56, Minot;
Gerald Wayne Osby Jr., 22, Minot;
James Alex Locklear, 27, Minot;
Alyssa Jo Schlienz, 21, Minot;
Audra Dezzari Harris, 39, Minot;
Gilbert Eugene Graim Jr., 21, Bakersfield;
Teoshalashanae M. Songcuan, 24, Bakersfield;
Deandre Trayvon Peterson, 24, Minot;
Jimmy Dale Price, 42, Minot;
Miranda Leigh Grant, 30, Minot;
Rodney Lee Jackson, 49, Carson, California.
Assistant United States Attorney Rick Volk is prosecuting these cases for the District of North Dakota.
These cases are being investigated by the Federal Bureau of Investigation, the Kern County Violent Crime and Gang Task Force, North Dakota Bureau of Criminal Investigation, Bakersfield Police Department, Minot Police Department, Ward County Sheriff’s Office, Ward County Narcotics Task Force, Drug Enforcement Administration, Metro Area Narcotics Task Force, North Dakota Highway Patrol, and United States Border Patrol, with assistance from the Kern County Probation Department.
Arkansas Trucker Guilty of Transporting 9 Aliens from LaredoRead the Press Release
LAREDO, Texas - A commercial truck driver from Kensett, Arkansas, has entered a guilty plea to transporting undocumented aliens, announced U.S. Attorney Kenneth Magidson. Marcus Randall Johnston, 42, pleaded guilty this afternoon before U.S. Magistrate Judge J. Scott Hacker.
According to court records, Johnston was driving north on Interstate Highway 35 until reaching the Border Patrol checkpoint near mile marker 29 on May 25, 2015. Although denying having any persons hidden within the semi-tractor he was driving, agents discovered nine undocumented aliens - eight of whom were from Mexico and one from Ecuador - hiding within the cab behind and above the driver’s chair. All of the transported aliens admitted they had entered the Rio Grande River from Mexico illegally. They furthered that they had paid up to $2,000 in advance to the smugglers of the total $6,000-$6,500 required for the illegal transportation from their native countries.
Upon his arrest Johnston immediately confessed. He related having agreeing to smuggle the aliens from Laredo and would be paid $4,000 for smuggling them from Laredo to Cotulla. He expected to receive more specific instructions upon arrival in Cotulla with the aliens.
Johnston faces a maximum sentence of up to 20 years in federal prison and a possible fine of up to $250,000. He has been in custody since his arrest on May 25, 2015, where he will remain pending sentencing before U.S. District Judge George P. Kazen to be set at a later date.
The investigation leading to the charges was conducted by Border Patrol and Homeland Security Investigations. Assistant U.S. Attorney Jose Homero Ramirez is prosecuting the case.
Alleged Pyramid Scheme Promoter Indicted on Visa Fraud ChargesRead the Press Release
BOSTON – A Florida man connected to two notable pyramid schemes was indicted on visa fraud charges today.
Sanderley Rodrigues De Vasconcelos, 43, of Davenport, Fla., was indicted on fraud and misuse of visas, permits, and other documents.
According to the indictment, Rodrigues presented his green card to U.S. Customs and Border Protection Officers on May 3, 2015, at Logan International Airport, knowing that he obtained that document based on false statements to immigration officials. Rodrigues was arrested at Newark International Airport on May 16, 2015 upon returning to the United States after a trip abroad. He was detained until July 13, 2015, but has since been released by the Court on strict conditions pending trial.
Rodrigues came to the attention of federal authorities in 2006 when the U.S. Securities and Exchange Commission (SEC) sued him in connection with his ownership of Universo Fone Club and defrauding investors of millions of dollars. More recently Rodrigues was cited by the SEC for his role in promoting TelexFree, a pyramid scheme that purported to sell a voice over Internet service. In July 2014, the owners of TelexFree were charged with conspiracy to commit wire fraud and several counts of wire fraud. In addition to the instant indictment, Brazilian authorities have obtained a warrant for Rodrigues’ arrest, charging him with leaving Brazil in violation of a court order.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assisted U.S. Attorney Cory S. Flashner of Ortiz’s Worcester Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
70-Year-Old Lubbock Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — John Everette Murdock, 70, of Lubbock, Texas, appeared today before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to an indictment charging one count of access with intent to view child pornography, announced John R. Parker, U.S. Attorney for the Northern District of Texas.
Murdock, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to plea documents filed in the case, Murdock used a computer to access, with intent to view, various images of child pornography. He used file-sharing software to search for material that was likely to result in his access to child pornography, which he would view and then delete. Law enforcement seized that computer and hard drive during the execution of a search warrant at his residence in late August 2014.
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 (ICE) Homeland Security Investigations (HSI) is conducting the investigation. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
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Tuesday 11 August 2015
Wilkinsburg Man Pleads Guilty in Safe Streets Task Force Investigation into Drug TraffickingRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of crack cocaine, United States Attorney David J. Hickton announced today.
Larry Washington, 64, of Wilkinsburg, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, co-conspirators were intercepted over the wire brokering crack cocaine deals on behalf of Washington. Also during that timeframe, agents were able to establish surveillance of Washington conspiring with others to possess with intent to distribute and distribute crack cocaine, which was shipped, in powder form, from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Dec. 2, 2015. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued Washington’s bond and conditions of release.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Larry Washington.
Wichita Man Who Tried to Run from Police Gets 5+ Years in Federal PrisonRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to 63 months in federal prison for a firearm violation, U.S. Attorney Barry Grissom said.
Aaron M. Belcher, 33, Wichita, Kan., already is serving time in state prison for a 2013 case in which he shot at police who were chasing him from the scene of a burglary. He will serve the federal consecutively to the sentence in the state case.
In the federal case, Belcher pleaded guilty to one count of unlawful possession of ammunition following a felony conviction. In his plea, he admitted that on Oct. 29, 2012, he was driving a stolen Corvette when a Wichita police officer tried to pull him over. After a high speed chase, he pulled into a driveway of a home in the 100 block of Alexander in Haysville. When the owner of the home heard police sirens, he confronted Belcher. The home owner wrestled Belcher to the ground and held him until police arrived. Police found the ammunition in the stolen car.
Grissom commended the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Matt Treaster for their work on the case.
West Roxbury Man Previously Convicted for Ponzi Scheme Sentenced to Prison for Violating Court OrdersRead the Press Release
BOSTON – A West Roxbury man was sentenced today for violating an asset freeze and other court orders entered in a civil case brought by the Securities and Exchange Commission (SEC).
Steven Palladino, 57, was sentenced by U.S. District Court Judge Douglas P. Woodlock to two years in prison, which he will not begin serving until after he completes the ten to twelve-year sentence imposed by the Commonwealth of Massachusetts for his conviction in the state Ponzi scheme case. In May 2015, Palladino pleaded guilty to twenty-five counts of criminal contempt in U.S. District Court in Boston.
From May through November 2013, Palladino violated court orders which were imposed as a result of the SEC’s civil case when he incurred thousands of dollars in credit card charges and cash advances – including charges at high-end restaurants and department stores – and did not deposit the proceeds of cash advances into an escrow account established by the Court. In addition, Palladino violated the same court orders in June 2013 when he sold a truck he owned and did not deposit the proceeds into the escrow account. Furthermore, Palladino violated another court order by not undoing his transfers of luxury vehicles to his wife, and the subsequent encumbrance of those luxury vehicles with $137,000 in new loans, by November 2013.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. U.S. Attorney Ortiz also expressed appreciation for the significant assistance provided by the Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Undocumented Alien with Guns ConvictedRead the Press Release
LAREDO, Texas – A Mexican national living illegally in Laredo has been convicted of having a firearm in violation of federal law, announced U.S. Attorney Kenneth Magidson.
Jose Angel Villarreal-Sanchez, 42, entered his guilty plea this morning before U.S. District Judge Marina Garcia Marmolejo.
Following a tip, law enforcement went to Villarreal-Sanchez’s home in Laredo on May 14, 2015, where he had been living illegally for some time. It was there that agents with Homeland Security Investigations (HSI) discovered he possessed a pistol and a firearm in his bedroom. A criminal complaint was filed the following day which further detailed that agents had also found three baggies of cocaine hidden in some chicken feed in Villarreal-Sanchez’s back yard.
Villarreal-Sanchez has been in custody since his arrest on May 14, 2015, where he will remain pending his sentencing hearing, set for Dec. 7, 2015. At that time, he faces a maximum of 10 years in federal prison and a possible $250,000 fine.
The investigation leading to the charges was conducted by HSI with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez is prosecuting the case.
U.S. Government Files Civil Suit Involving Lincoln Area Mining ClaimsRead the Press Release
HELENA – The United States Attorney’s Office announces today that a civil suit has been filed in federal court against George Kornec, Philip Nappo, and Intermountain Mining and Refining, LLC, in relation to alleged unauthorized illegal actions on mining claims in the Helena National Forest. Kornec and Nappo are the managers or members of Intermountain Mining and Refining, LLC, according to a business entry on the Montana Secretary of State’s website. The civil suit is being brought by attorneys in the Montana United Attorney’s Office on behalf of the United States Forest Service.
“The miners will have their day in court. These disputes will be resolved by the rule of law in a federal courtroom,” said Montana U.S. Attorney Mike Cotter.
“The Forest Service has worked with the owner and operator of White Hope mine for decades,” said T. David Smith, Director of Public and Government Relations for the Forest Service’s Northern Region. “It is unfortunate that today’s action has become necessary. However, we have an obligation to ensure that all activities conducted on National Forest System lands are done so in accordance with the law and federal regulations.”
According to court documents filed today, the United States government asks the federal district court to find that Kornec, Nappo and Intermountain Mining and Refining, LLC, have failed to comply with regulations governing their unpatented mining claims and to find that they are illegally interfering with property of the United States, which is managed by the United States Forest Service. Court filings further state that the government requests that the court permanently enjoin Kornec, Nappo and Intermountain Mining and Refining from such activity in the future until and unless a plan of operation authorizing mining activities has been approved by the United States Forest Service. The Complaint requests that if a plan is not approved, that the building and roads that were constructed without approval be removed and reclaimed, and that Kornec, Nappo and Intermountain Mining and Refining, LLC, be ordered to cease and desist with interfering with public access across the unpatented mining claims.
To access further details and court filings related to this case, please see PACER case reference 15-78, at www.pacer.gov.
Tyler County woman convicted in methamphetamine manufacturing operationRead the Press Release
WHEELING, WEST VIRGINIA – Kate Lynn Baker, 20, of Friendly, West Virginia, was convicted in federal court for her role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Baker was one of six individuals charged in a 19-count federal indictment in June 2015. Baker was discovered in Wetzel County, West Virginia in possession of matches and pseudoephedrine, both commonly used to manufacture methamphetamine.
Baker pled guilty to a criminal Information charging her with one count of “Possession of Materials to be used in the Manufacture of Methamphetamine.” She faces up to four years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The West Virginia State Police and the Pleasants Count Sheriff’s Department investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Two Plead Guilty in Scheme to Bribe DMV Employees to Issue Commercial Driver’s Licenses; Four More ChargedRead the Press Release
SACRAMENTO, Calif. — Two defendants, including a DMV employee, pleaded guilty today to their roles in a conspiracy to sell Class A commercial driver’s licenses (CDLs) without the buyer having to take or pass the required tests, announced United States Attorney Benjamin B. Wagner; Tatum King, Acting Special Agent in Charge for Homeland Security Investigations (HSI) San Francisco; FBI Special Agent in Charge Monica M. Miller; and Frank Alvarez, Chief of Investigations Division, California Department of Motor Vehicles. Four more persons, including two other DMV employees, were charged in a 17‑count indictment unsealed Friday.
According to court documents, between June 2011 and March 2015, three owners of truck driving schools acted as brokers who accepted money from individuals who wanted Class A CDL without having to take and pass the required written and behind-the-wheel driving tests. The brokers used the money to bribe DMV employees to access the DMV’s computer database to submit false information that the individuals had passed the tests. This resulted in the DMV issuing official driver’s licenses to individuals who were not qualified to receive such licenses.
Emma Klem, 45, of Salinas, a DMV employee who worked in a Salinas DMV branch, and trucking school owner Kulwinder Dosanjh Singh, aka Sodhi Singh, 58, of Turlock, were charged earlier in separate criminal pleadings and entered guilty pleas this morning to conspiracy to commit bribery and to commit identity fraud. The indictment, returned Thursday and unsealed Friday, charges trucking school owners Pavitar Dosangh Singh, aka Peter Singh, 55, of Sacramento; and Mangal Gill, 55, of San Ramon; and DMV examiners Andrew Kimura, 30, of Sacramento; and Robert Turchin, 65, of Salinas, with conspiracy, bribery, and fraud in connection with identification documents. The indictment specifically references the involvement of Klem and Sodhi Singh.
“Public corruption is always a high priority for the U.S. Department of Justice, but our mission is particularly crucial when the conduct not only violates the public trust, but endangers public safety,” said U.S. Attorney Wagner. “We depend on the Department of Motor Vehicles to keep the roads of this state safe, and individuals who undermine that function for personal gain must not expect leniency from the justice system. I am pleased that DMV Investigations worked so closely with FBI, HSI, and my office to expose and prosecute this conduct.”
“These investigations and the criminal charges they produced send a very clear and loud message that the Department of Motor Vehicles takes fraud and illegal activity very seriously, and it is absolutely not tolerated,” stated Frank Alvarez, Chief Investigator, California Department of Motor Vehicles. “DMV has already taken action and cancelled or revoked a number of licenses that appear to have been obtained through fraudulent means. The department will continue to work with our federal partners to ensure that justice is served.”
“Public corruption undermines the integrity of government, compromises safety, and damages our trust in public officials and employees,” said Special Agent in Charge Monica M. Miller of the FBI Sacramento field office. “The FBI is grateful for the collaboration of the California DMV and HSI during this complex, multi-year investigation. We are committed to working with our federal and state partners to identify and investigate public corruption at any level and urge the public to contact us with any information regarding corruption in government.”
“This scheme enabled unqualified drivers to obtain licenses to operate all types of commercial vehicles,” said Tatum King, acting special agent in charge for HSI San Francisco. “The implications of putting untrained drivers behind the wheel in such cases is frankly chilling. HSI will continue to work closely with its federal and state law enforcement partners to target schemes like this that serve to enrich the perpetrators at the expense of the public’s safety.”
In order to obtain a Class A CDL to operate a commercial truck, such as an 18-wheel cargo truck, applicants must pass both a written test, which is offered in many DMV locations including Sacramento, and a behind-the-wheel test that is offered in a limited number of DMV locations including Salinas. The charges announced today are the result of investigations conducted by the Federal Bureau of Investigation, Homeland Security Investigations (HSI), and DMV Investigations which originated separately, but which combined in the course of the investigation.
The indictment charges three conspiracies. The first began in approximately June 2011 and involved Kimura, Peter Singh, and Gill, who conspired with Klem and Sodhi Singh to obtain Class A CDLs for individuals who had not taken or passed the necessary DMV examinations in return for the payment of money to employees of the DMV (bribery), and to produce identification documents without lawful authority (ID fraud). The indictment alleges that Kimura was a Licensing Registration Examiner who worked in the DMV’s office in Sacramento. He processed applications for Class A and Class B commercial and Class C non‑commercial driver’s licenses. Peter Singh owned and operated a truck driving school in Sacramento and acted as a broker to assist individuals in obtaining Class A, Class B, and Class C driver’s licenses. Gill owned and operated trucking schools in Fremont, Lathrop, Fresno, and Salinas and acted as a broker to assist individuals in obtaining Class A, Class B, or Class C licenses. Sodhi Singh owned and operated a truck-driving school in Turlock and also acted as a broker to assist individuals in obtaining Class A, Class B, and Class C licenses. Klem was a Motor Vehicle Representative who worked in the DMV’s office in Salinas. Part of her job duties included processing applications for Class A, Class B, and Class C licenses.
The second alleged conspiracy to commit bribery and ID fraud involved Gill, Klem, and DMV employee Robert Turchin, who was a Licensing-Registration Examiner working at the DMV facility in Salinas. According to the indictment, from July 2012 until April 2015, Gill acted as a broker for individuals who desired to obtain Class A or Class B CDLs without taking the requisite DMV examinations. He paid Turchin and Klem and other DMV employees to alter DMV records so that Class A and Class B CDLs would be issued to individuals who were not qualified to receive such licenses.
According to the indictment, the third conspiracy began in April 2013 and continued until July 2015 in Sacramento. It is alleged that Peter Singh paid money to Kimura to access the DMV’s computer database and alter individuals’ electronic DMV records to fraudulently and incorrectly indicate that applicants had passed examinations for Class C licenses, had passed the written examination for Class A CDLs, or had fulfilled the requirements for a Class A or Class B CDL renewal. These incorrect and fraudulent entries in the DMV database caused the DMV to issue licenses to unqualified individuals.
As part of the guilty pleas entered this morning, Sodhi Singh admitted accepting money to bribe DMV employees to obtain CDLs for individuals, and DMV employee Emma Klem admitting changing DMV data to indicate that those individuals had passed behind-the-wheel tests, when in fact they had never appeared to take the test.
Court documents indicate that the number of CDLs issued as a result of the scheme could number over 100. The investigation is continuing. DMV has already cancelled or revoked a number of licenses that appear to have been fraudulently procured, and will be reviewing the evidence to determine what additional actions may be appropriate.
These cases are the product of investigations by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Motor Vehicles’ Investigations Division, Office of Internal Affairs. Assistant United States Attorneys Todd Pickles and Rosanne L. Rust are prosecuting the cases.
Klem and Sodhi Singh are scheduled to be sentenced on November 17, 2015. They face a maximum statutory penalty of five years in prison and a $250,000 fine for each count. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Peter Singh and Andrew Kimura were arraigned on August 7, 2015, and entered pleas of not guilty. Turchin and Gill are scheduled to be arraigned on Friday, August 14, 2015. If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two New York City Residents Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
Knife-Wielding Defendants Allegedly Attacked Federal Law Enforcement Officers
Yesterday, a federal grand jury in the Eastern District of New York returned an indictment charging Munther Omar Saleh, 20, of Queens, New York, with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), and assault and conspiracy to assault federal officers. The same indictment also charges Fareed Mumuni, 21, of Staten Island, New York, with conspiring and attempting to provide material support to ISIL, assault and conspiracy to assault federal officers and attempted murder of federal officers.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD).
The defendants’ arraignments are scheduled for Aug. 20, 2015, at 11:00 a.m. EDT, before U.S. Magistrate Judge James Orenstein of the Eastern District of New York at the U.S. Courthouse in Brooklyn, New York.
As alleged in the indictment and in other court filings, during the conspiracy, the defendants expressed fervent support for ISIL. Saleh and Mumuni conspired to conduct an attack in the United States, including plotting to use a pressure cooker bomb in the New York metropolitan area on behalf of ISIL. On June 13, 2015, Saleh and another individual were arrested in Queens after they approached a federal agent while armed with knives. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after repeatedly stabbing an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s body armor. During a search of the vehicle used by Mumuni, investigators recovered a second large knife.
“According to the indictment, Munther Omar Saleh and Fareed Mumuni conspired to provide material support to ISIL and devised a plan to conduct an attack in New York. During his arrest, Mumuni stabbed an FBI agent numerous times, but thankfully the agent’s body armor protected him from the defendant’s attack and the defendant was safely apprehended by law enforcement,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to seek justice against those who conspire to provide material support to designated foreign terrorist organizations – and we will relentlessly pursue any individuals who attempt to harm the brave law enforcement officials who risk their lives to protect us.”
“Both Munther Omar Saleh and Fareed Mumuni allegedly conspired to provide material support to ISIL. Both men also attacked law enforcement officers who work to keep our communities safe,” said Acting U.S. Attorney Currie. “The officers exercised extraordinary skill and restraint in safely subduing the defendants, who will now face the full force of justice in federal court.”
“These indictments remind us of the dangers faced by law enforcement and the community alike,” said Assistant Director in Charge Rodriguez. “The FBI remains vigilant in its pursuit against violence and restrained in its apprehension of such offenders. We are grateful for the safety of our agents and will continue to work to eliminate threats to our country with the help of our law enforcement partners.”
“Stabbing an FBI agent and providing material support to a designated terrorist organization are a recipe for indictment, as alleged,” said Commissioner Bratton. “I commend the agents and detectives from the Manhattan-based Joint Terrorism Task Force and prosecutors in the Eastern District for their work on this case.”
If convicted, Mumuni faces a maximum sentence of 85 years’ imprisonment and Saleh faces a maximum sentence of 65 years’ imprisonment. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda and Ian C. Richardson of the Eastern District of New York, with assistance provided by Trial Attorney Robert Sander of the Justice Department’s Counterterrorism Section.
Saleh and Mumuni Indictment
Two New York City Residents Charged with Conspiracy to Provide Material Support to IsilRead the Press Release
WASHINGTON – Yesterday, a federal grand jury in the Eastern District of New York returned an indictment charging Munther Omar Saleh, of Queens, New York, with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), and with assaulting and conspiring to assault federal officers. The same indictment also charges Fareed Mumuni, of Staten Island, New York, with conspiring and attempting to provide material support to ISIL, assaulting and conspiring to assault federal officers, and with attempted murder of federal officers. The defendants’ arraignments are scheduled for August 20, 2015 at 11 a.m. EDT before United States Magistrate Judge James Orenstein at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI New York Field Office, and Commissioner William J. Bratton of the New York City Police Department (NYPD).
As alleged in the indictment and in other court filings, during the conspiracy, the defendants expressed fervent support for ISIL. Saleh and Mumuni conspired to conduct an attack in the United States, including plotting to use a pressure cooker bomb in the New York metropolitan area on behalf of ISIL. On June 13, 2015, Saleh and another individual were arrested in Queens after they charged at a federal officer while armed with knives. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after repeatedly stabbing an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s body armor. During a search of the vehicle used by Mumuni, investigators recovered a second large knife.
“According to the indictment, Munther Omar Saleh and Fareed Mumuni conspired to provide material support to ISIL and devised a plan to conduct an attack in New York. During his arrest, Mumuni stabbed an FBI agent numerous times, but thankfully the agent’s body armor protected him from the defendant’s attack and the defendant was safely apprehended by law enforcement,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Both Munther Omar Saleh and Fareed Mumuni allegedly conspired to provide material support to ISIL. Both men also attacked law enforcement officers who work to keep our communities safe,” said Acting U.S. Attorney Currie. “The officers exercised extraordinary skill and restraint in safely subduing the defendants, who will now face the full force of justice in federal court.”
“These indictments remind us of the dangers faced by law enforcement and the community alike. The FBI remains vigilant in its pursuit against violence and restrained in its apprehension of such offenders. We are grateful for the safety of our agents and will continue to work to eliminate threats to our country with the help of our law enforcement partners,” said FBI Assistant Director in Charge Rodriguez.
“Stabbing an FBI agent and providing material support to a designated terrorist organization are a recipe for indictment, as alleged. I commend the agents and detectives from the Manhattan-based Joint Terrorism Task Force and prosecutors in the Eastern District for their work on this case,” said Police Commissioner Bratton.
If convicted, Mumuni faces a maximum sentence of 85 years’ imprisonment and Saleh faces a maximum sentence of 65 years’ imprisonment. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda, and Ian C. Richardson of the Eastern District of New York, with assistance provided by Trial Attorney Robert Sander of the Justice Department’s Counterterrorism Section.
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15-CR-393 (EDNY)
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Two Caldwell Men Admit to Unlawfully Possessing FirearmsRead the Press Release
BOISE – Gustavo Collado Rodriguez, 19, and David Angel Prieto, 22, both of Caldwell, Idaho, pleaded guilty today in United States District Court to unlawfully possessing firearms, U.S. Attorney Wendy J. Olson announced.
According to information presented in court, police officers responded to a residence in Caldwell, Idaho, after a person called 911 for help. The person told officers that two men came to the residence and one of the men pointed a handgun at an occupant of the home. Police officers followed footprints in the snow to a nearby shed. Inside the shed, officers found Rodriguez and Prieto along with a sawed-off 12 gauge shotgun and a 9 millimeter pistol with a high capacity magazine loaded with hollow point ammunition. Rodriguez is prohibited from possessing firearms because he is an alien illegally and unlawfully in the United States. Prieto is prohibited from possessing firearms because he was previously convicted of the felony crime of possession of a controlled substance. As part of the plea agreements, Rodriguez and Prieto agreed to forfeit the firearms involved in the offense.
The charge of unlawfully possessing firearms is punishable by up 10 years of imprisonment, three years of supervised release, and a maximum fine of $250,000. Rodriguez and Prieto are scheduled for sentencing on November 4, 2015 by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Caldwell Police Department and the Treasure Valley Metro Violent Crimes Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Canyon County Prosecutor’s Office, the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Three Sentenced to Lengthy Federal Prison Sentences for Roles in December 2014 Armored Car HeistRead the Press Release
AMARILLO, Texas — Three men who pleaded guilty to their respective roles in a December 2014 armored car heist in Amarillo, Texas, have been sentenced to lengthy federal prison sentences, announced U.S. Attorney John Parker of the Northern District of Texas.
Britt Michael Gresham, 24, and Brian Keith Hodge, 43, were sentenced today by U.S. District Judge Mary Lou Robinson to 78 months and 63 months, respectively, in federal prison. Last week, co-conspirator Trent Michael Cook, 24, was sentenced by Judge Robinson to 97 months in federal prison. Each pleaded guilty in May 2015 to one count of conspiracy to interfere with commerce by robbery.
According to documents filed in the case, Cook purchased firearm that he, Gresham, and Hodge planned to use to rob the vault of Rochester Armored in Amarillo on December 20, 2014. The plan involved Cook using his status as an employee of Rochester Armored to gain access to the company vault that contained millions of dollars in U.S. currency, so that the three defendants could commit the armed robbery of the business. Cook and Gresham also purchased a van to load and transport bags of U.S. currency taken in the robbery.
Hodge further attempted to obtain a location in Colorado for the defendants to hide after the robbery; in fact, Cook and Gresham were arrested in Colorado Springs, Colorado. When questioned by a Colorado Springs Police Department detective, Cook admitted that he and Gresham stole the money from the Rochester armored car on December 22, 2014. Cook also admitted to initially agreeing with Gresham and Hodge to rob the Rochester vault on December 20, 2014. Cook admitted they were all armed with Smith and Wesson, Model M&P, 9-millimeter caliber pistols when they went to Rochester on December 20, 2014, to attempt the robbery. Cook said they were not able to complete the robbery because there were additional employees at Rochester that he did not expect to be there, and he notified Gresham and Hodge who were parked outside. Cook also said the white Ford van was to be used to load the money and other items to take to Colorado.
Court documents further state that after the defendants were unable to rob to vault, Cook and Gresham decided to steal money from a Rochester armored car, which they did.
The Amarillo Police Department, the Colorado Springs Police Department, the Potter County District Attorney’s Office and the FBI investigated the case. Assistant U.S. Attorney Tim Hammer prosecuted.
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Third Defendant Pleads Guilty to Wire Fraud and Possession of Counterfeit Credit CardsRead the Press Release
BOISE – Rafael Perez, 31, of Guaymas, Mexico, pleaded guilty today in federal court to one count of wire fraud and one count of possession of fifteen or more counterfeit credit cards, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Perez and his co-defendants, Javier Miranda-Molina and Irving Gonzalez-Bocanegra, were present and traveling together in Boise on March 31, 2015, for the purpose of using counterfeit credit cards to make fraudulent purchases of merchandise and gift cards. The defendants engaged in a number of transactions, at a variety of stores, using credit cards the defendants knew to be counterfeit. The defendants fraudulently obtained merchandise valued at approximately $5,117.63.
Prior to arriving in Boise, on March 29 and 30, 2015, the defendants engaged in similar fraudulent transactions in Montana and obtained merchandise valued at approximately $8,184.01.
When arrested in Boise, the defendants were working together to package and ship a variety of merchandise purchased with counterfeit credit cards, such as GoPro Hero 4 Cameras, Samsung Galaxy Nooks, and video game systems. They had in their joint possession a number of counterfeit credit cards. These included: approximately eighty-four counterfeit credit cards taped into the pages of a magazine; three counterfeit credit cards recovered from the trash, and three counterfeit credit cards found in the driver’s side door pocket of their rental car. Each of these counterfeit cards contained one of the defendant’s names embossed on the front of the card and a real but unauthorized account number encoded to the magnetic strip on the back of the card. Perez agreed to the forfeiture of, and to abandon any interest in, all credit cards, gift cards, merchandise, and other items seized at his arrest.
The defendants were charged with wire fraud because all of the described transactions resulted in wire communications that were foreseeable to the defendants, in particular, interstate transmissions by wire of information from the point of sale terminals in the stores to the credit card payment processers and to the account-issuing banks located in different states.
“This case demonstrates how federal and local law enforcement cooperate with Idaho businesses to protect business integrity and consumer confidence from the costs and victimization imposed by fraud,” said Olson.
Wire fraud is punishable by a term of imprisonment of up to twenty years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100. Possession of 15 or more counterfeit and unauthorized access devices is punishable by a term of imprisonment of up to ten years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100.
Perez’s sentencing is set before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise on October 29, 2015.
Co-defendant Javier Miranda-Molina, 22 of Sonora, Mexico, pleaded guilty on August 4, 2015 and is set for a sentencing hearing on October 14, 2015. Co-defendant Irving Gonzalez-Bocanegra, 25, of Hermosillo, Mexico pleaded guilty on August 6, 2015 and is set for sentencing on October 27, 2015.
The case was investigated by the United States Secret Service and the Boise Police Department.
Technology Integration Group Agrees to Pay $5.9 Million to Settle False Claims Act AllegationsRead the Press Release
Company Previously Paid $4.6 Million in Restitution as Part of Non-Prosecution Agreement in Related Criminal Investigation
PC Specialists Inc., doing business as Technology Integration Group (TIG), has agreed to pay the United States $5.9 million to settle allegations that the company inflated the price of computers sold through another company to the National Nuclear Security Administration (NNSA) for use at Sandia National Laboratories in Albuquerque, New Mexico. TIG, headquartered in San Diego, buys computers and other technology products for resale to other purchasers.
“The resources available to achieve the important goals carried out by our national laboratories are precious and limited,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that diverting funds from the critical mission of the laboratories by inflating costs and making false claims or causing others to make false claims for government funds will not be tolerated.”
From 2003 to 2013, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA. The NNSA purchased the computers for use at Sandia National Laboratories. The United States alleged that TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract and causing false claims to the government for the inflated prices.
“Fraud involving government contracts will be zealously pursued in New Mexico,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “The U.S. Attorney’s Office and its law enforcement partners are committed to recovering losses, preventing fraud, holding accountable those who exploit government contracts and ensuring that the taxpayers’ monies are properly spent.”
In a separate but related matter, in April 2015, TIG entered into a non-prosecution agreement with the U.S. Attorney’s Office of the District of New Mexico regarding allegations that three employees in TIG’s Albuquerque branch office engaged in a scheme to defraud the United States by inflating the amounts it charged Sandia for computers. The non-prosecution agreement in that matter required TIG to terminate the employment of the three employees in its Albuquerque branch office – a vice president, a senior account executive and an accounts executive – who participated in and profited from the scheme. The non-prosecution agreement also required TIG to retain and pay for an independent monitor selected by the U.S. Attorney’s Office who is responsible for monitoring TIG’s compliance with the agreement, and TIG policies, procedures and training relating to federal government contracts over the agreement’s three-year term.
The allegations resolved by the civil settlement announced today arose from a lawsuit filed by Maverick Granger, a former TIG executive in Albuquerque, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and share in the recovery. Mr. Granger’s share of the settlement has not yet been determined.
These resolutions were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of New Mexico and the U.S. Department of Energy’s Office of Inspector General (DOE-OIG). The criminal investigation was conducted by DOE-OIG, the FBI’s Albuquerque Division and the Albuquerque Office of the Internal Revenue Service-Criminal Investigation.
The False Claims Act lawsuit is captioned United States ex rel. Granger v. PC Specialists, Inc. d/b/a/ Technology Integration Group, No. 14-cv-00633 (D.N.M.). The claims resolved by today’s civil settlement and the earlier non-prosecution agreement are allegations only; there has been no determination of guilt or liability.
Technology Integration Group Agrees to Pay $5.9 Million to Settle False Claims Act AllegationsRead the Press Release
ALBUQUERQUE – PC Specialists Inc., doing business as Technology Integration Group (TIG), has agreed to pay the United States $5.9 million to settle allegations that the company inflated the price of computers sold through another company to the National Nuclear Security Administration (NNSA) for use at Sandia National Laboratories in Albuquerque, New Mexico. TIG, headquartered in San Diego, buys computers and other technology products for resale to other purchasers.
“The resources available to achieve the important goals carried out by our national laboratories are precious and limited,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that diverting funds from the critical mission of the laboratories by inflating costs and making false claims or causing others to make false claims for government funds will not be tolerated.”
From 2003 to 2013, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA. The NNSA purchased the computers for use at Sandia National Laboratories. The United States alleged that TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract and causing false claims to the government for the inflated prices.
“Fraud involving government contracts will be zealously pursued in New Mexico,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “The U.S. Attorney’s Office and its law enforcement partners are committed to recovering losses, preventing fraud, holding accountable those who exploit government contracts and ensuring that the taxpayers’ monies are properly spent.”
In a separate but related matter, in April 2015, TIG entered into a non-prosecution agreement with the U.S. Attorney’s Office of the District of New Mexico regarding allegations that three employees in TIG’s Albuquerque branch office engaged in a scheme to defraud the United States by inflating the amounts it charged Sandia for computers. The non-prosecution agreement in that matter required TIG to terminate the employment of the three employees in its Albuquerque branch office – a vice president, a senior account executive and an accounts executive – who participated in and profited from the scheme. The non-prosecution agreement also required TIG to retain and pay for an independent monitor selected by the U.S. Attorney’s Office who is responsible for monitoring TIG’s compliance with the agreement, and TIG policies, procedures and training relating to federal government contracts over the agreement’s three-year term.
The allegations resolved by the civil settlement announced today arose from a lawsuit filed by Maverick Granger, a former TIG executive in Albuquerque, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and share in the recovery. Mr. Granger’s share of the settlement has not yet been determined.
These resolutions were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of New Mexico and the U.S. Department of Energy’s Office of Inspector General (DOE-OIG). The criminal investigation was conducted by DOE-OIG, the FBI’s Albuquerque Division and the Albuquerque Office of the Internal Revenue Service-Criminal Investigation.
The False Claims Act lawsuit is captioned United States ex rel. Granger v. PC Specialists, Inc. d/b/a/ Technology Integration Group, No. 14-cv-00633 (D.N.M.). The claims resolved by today’s civil settlement and the earlier non-prosecution agreement are allegations only; there has been no determination of guilt or liability.
Tallulah man sentenced to 10 years in prison for selling methamphetamineRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Tallulah man was sentenced Monday to 120 months in prison for selling methamphetamine.
Marvin Brown, 45, of Tallulah, La., was sentenced by U.S. District Judge Robert G. James on one count of distribution of methamphetamine. He was also sentenced to five years of supervised release. According to evidence presented at the May 1, 2015 guilty plea hearing, law enforcement agents recorded Brown selling 109.1 grams of methamphetamine on July 9, 2014 for $6,000 in cash in Tallulah. As agents approached to arrest him, Brown fled. He was later captured after abandoning his vehicle and fleeing on foot.
The DEA conducted the investigation. Assistant U.S. Attorney F. Michael O’Mara prosecuted the case.
South Side Resident Charged with Interstate StalkingRead the Press Release
PITTSBURGH- A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of interstate stalking, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on August 5, named Frederick H. Banks, 47, as the sole defendant.
According to the indictment Banks harassed an individual through telephone calls and a Craigslist posting.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 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.
Magistrate Judge Keith A. Pesto ordered Banks detained pending trial.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
Sixth Person Indicted for Role in Federal Feeding Program FraudRead the Press Release
LITTLE ROCK— Another feeding program sponsor has been indicted for his role in a scheme to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Reuben Nims, age 51, of Little Rock, has been arrested after the filing of a 10-count indictment.
The indictment, returned by a Federal Grand Jury on August 5, 2015, charges Nims with mail fraud as part of a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds. Following his arrest Tuesday Nims was arraigned and released on bond by Judge Joe J. Volpe.
The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The indictment states that Nims operated as a sponsor for a feeding program through an organization called Blessed Thru Success. It alleges that a relative of Nims worked for DHS and processed applications from sponsors applying to participate in the feeding programs.
The indictment alleges that Nims applied with DHS to participate as a sponsor and that his relative at DHS approved his applications. The indictment states that he falsely represented his average daily attendance and the number of meals provided; no children were actually fed. In this way, Nims stole over $182,000 of federal funds, according to the indictment.
"With reportedly over 200,000 children at risk of hunger in Arkansas because they are not getting nutritious food, this indictment is a small step toward ensuring the funding for nutritious feeding programs in Arkansas is actually feeding children," Thyer said. "This is the third indictment and sixth person charged in connection to feeding programs in Arkansas. In December 2014, my office indicted three individuals for their roles in a conspiracy to steal federal money through feeding programs administered by the Department of Agriculture. I expect that as the investigation into Arkansas’ feeding programs continue, there will be additional indictments. We will not tolerate the blatant disregard of the welfare of Arkansas’ children by those who steal the very money meant to alleviate the burgeoning need to put nutritious food in the mouths of hungry children. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to my office at [email protected]."
The statutory penalty for mail fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture – Office of the Inspector General, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg.
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Seventy Defendants Facing Multiple Drug and Gun Charges in 40 Separate Indictments Following Major Investigation in Mississippi CountyRead the Press Release
BLYTHEVILLE, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Scott Ellington, Prosecuting Attorney for the Second Judicial District of Arkansas, announced today the simultaneous unsealing of 40 federal indictments charging 70 defendants in a major operation aimed at curbing drug trafficking and gun violence in Blytheville and Mississippi County. The indictments were returned by the Grand Jury on August 5, 2015, and were unsealed today following a coordinated roundup of the charged defendants.
The Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, named Blynd Justus, began in 2013, with a goal to target steadily increasing drug and gun crime in Mississippi County. Early Tuesday morning 574 law enforcement officers, including more than 300 tactical officers, helped execute the arrest warrants in a targeted takedown that resulted in the arrests of 50 defendants on various federal firearm and drug charges, including eleven defendants who were already in state custody. Twenty defendants are now fugitives. Most of the defendants are residents of Blytheville (see attachment for complete list of defendants and charges).
"When I was confirmed as U.S. Attorney for the Eastern District of Arkansas five years ago I made a commitment to help clean up the Arkansas Delta," Thyer said. "It has been evident for some time that drugs and guns are overrunning the entire Arkansas Delta in general, and Mississippi County in particular. Today’s operation is a signal to those criminals that the law enforcement community at all levels will find you and stop you. Our collective goal is to return these communities to their law-abiding citizens. And while the 40 indictments announced today are a huge step toward this goal, our commitment to helping our friends in this part of the state will continue long after today."
From January 2014 through June 2015, agents with the FBI and Second Judicial District Drug Task Force coordinated more than 160 controlled purchases of drugs and/or firearms, resulting in the acquisition of more than 19 pounds of methamphetamine and 89 illegally possessed firearms, several of which were stolen. Also, more than 10 ounces of crack cocaine was purchased in the investigation. A majority of the 70 defendants are convicted felons.
"The arrests that were carried out today show our unwavering determination to disrupt violent gang activity and dismantle illegal sales of firearms and drugs in our state," Resch said. "Today’s operation, which includes 40 indictments and 70 defendants, combined with the 72 arrests during Delta Blues and the 24 arrests during Delta Crossroads represent the significant commitment of the FBI and the USAO to target violent criminals in eastern Arkansas. We appreciate the concentrated efforts made by our partners, USAO, ATF, U.S. Marshals, DEA, IRS, 2nd Judicial DTF, Arkansas State Police, Arkansas National Guard Counter Drug Unit, Mississippi County Sheriff’s Office, the Blytheville and Osceola Police Departments, and the SE Missouri Drug Task Force."
"On behalf of our local law enforcement agencies and the cities of Blytheville and Osceola, I want to thank U.S. Attorney Chris Thyer and FBI Special Agent In Charge David Resch for their commitment to help the good people of Mississippi County take back our community from those destroying it with crime and violence," prosecuting attorney Ellington said. "Lieutenant Bobby Ephlin, Lieutenant Roy Coleman, Deputy Prosecutor Corey Seats and all the officers of the Second Judicial District Drug Task Force worked hard in conjunction with FBI Special Agent Ed Jernigan to make this operation successful. Sheriff Dale Cook, Chief Ross Thompson and Chief David Gladden deserve thanks for their continued support of the Task Force.
"Our community is worth fighting for, and I believe in Blytheville and Osceola. Cleaning up this community begins with holding people accountable for their actions. Today, with the help of the FBI and the Arkansas State Police, we took a big step toward taking back our community from the thugs and criminals who choose to sell drugs and guns, rather than contribute to it in a positive manner."
This is the third major operation centered in Mississippi County that the United States Attorney’s office for the Eastern District has been involved in since 2013, and the largest. In March 2013, the Grand Jury returned seven indictments naming 19 defendants, and in January 2014, the Grand Jury returned an indictment naming 25 defendants. Delta Blues was an operation centered in Helena-West Helena, and Delta Crossroads was centered in West Memphis. All indictments included multiple drug charges.
"This type of investigation shows the great teamwork and commitment of the federal, state and local agencies, and the Arkansas State Police in combating drug and gun trafficking in the State of Arkansas," Arkansas State Police Colonel Bill Bryant said. "All of these agencies combined their assets and resources to disrupt and dismantle these drug trafficking organizations."
In addition to the arrest warrants served today, the IRS served two search warrants at properties owned by another individual not indicted, and a financial investigation continues.
"The role of IRS CI (Criminal Investigation) in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations," said Christopher A. Henry, IRS Special Agent in Charge. "We are proud to work with our law enforcement partners by providing our financial investigative expertise. Today’s enforcement actions are an example of how the various law enforcement agencies in this district work together to stop the flow of illegal drugs into our communities."
The counts in today’s unsealed indictments include conspiracy to possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, distribution of crack cocaine and cocaine, use of a firearm in relation to a drug trafficking crime, felon in possession of a firearm, and use of a telephone to facilitate a drug trafficking crime. (See attached defendant/indictment list)
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Joe J. Volpe beginning at 10 a.m. on Thursday, August 13, 2015. Defendants already in custody will be arraigned on August 27, 2015, at 2 p.m.
The investigation was conducted by FBI, in partnership with the 2nd Judicial District Drug Task Force, which includes officers from the Blytheville Police Department, the Osceola Police Department and the Mississippi County Sheriff’s Office. Agencies assisting in today’s arrest operation include the Arkansas State Police, the Drug Enforcement Administration (DEA), the Arkansas National Guard Counter Drug Unit, the Southeast Missouri Drug Task Force (SEMO DTF), and the Internal Revenue Service-Criminal Investigations. The 40 indictments are being prosecuted by a team of multiple Assistant United States Attorneys, headed by Chris Givens and Kristin Bryant.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
(Blynd Justus Defendant List)