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Tuesday 28 July 2015
Owner of Illegal Online Gambling Website Sentenced to 18 Months in PrisonRead the Press Release
NEWARK, N.J. – A website owner involved in an illegal sports betting conspiracy with the Genovese Crime Family of La Cosa Nostra was sentenced today to 18 months in prison, U.S. Attorney Paul J. Fishman announced.
Joseph Graziano, 78, of Springfield, New Jersey, previously pleaded guilty before District Judge Claire C. Cecchi to an information charging him with one count of racketeering conspiracy. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Graziano was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Dominick J. Barone, 45, of Springfield, New Jersey, worked with Graziano in carrying out the daily activities of the website and both men conspired with the Genovese Crime Family of La Cosa Nostra in the operation of Beteagle.
Joseph Lascala, 83, of Monroe, New Jersey, was the alleged “capo” and a made member of the Genovese family operating in northern New Jersey. He directed the criminal activities of a smaller group of associates, referred to as a crew, whose activities included illegal gambling and the collection of unlawful debt.
As part of the conspiracy, associates of the crew were given access to Beteagle and were considered “agents.” Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Associates of the crew paid out winnings or collected losses in person. If a bettor failed to pay his gambling losses, the crew used their La Cosa Nostra status and threats of violence to collect on these debts.
In addition to the prison term, Judge Cecchi ordered Graziano to serve three years of supervised release and pay a $16,000 fine. As part of his plea agreement, Graziano has forfeited $1 million to the United States.
Barone previously pleaded guilty to his role in the scheme and was sentenced to 18 months in prison on June 16, 2015. Charges against Lascala are still pending. The charges and allegations against him are merely accusations and he is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lawrence S. Lustberg Esq., Newark
New York Man Sentenced for Million Dollar Mortgage Fraud SchemeRead the Press Release
BOSTON – A Skaneateles, N.Y. man was sentenced today in connection with a mortgage fraud scheme which resulted in losses of more than $1 million to lenders.
Michael St. Claire, 36, was sentenced by U.S. District Judge William G. Young to six months in prison, an additional four months of home confinement, and ordered to pay $1,257,945 in restitution. St. Claire previously pleaded guilty to conspiracy to commit wire fraud.
In early to mid-2007, St. Claire and co-defendant Monique Boucher recruited so-called investors to purchase 12 condominium units in a South Boston building that St. Claire had purchased. The recruits were told they would not have to bring any money to the table, even though the HUD-1 Settlement Statements falsely stated that each of them paid substantial down payments. Instead, those down payments came from funds supposedly due to St. Claire’s real estate company for liens that in fact, did not exist. Each recruit also was promised, and received, a significant payment after closing—in the tens of thousands of dollars—that they could use however they saw fit. These fees were paid to the buyers by both St. Claire and Boucher. Together, St. Claire and Boucher pocketed about $975,000 in profits from the loan proceeds. Eleven of the twelve properties went into foreclosure and sold at significant loss to the lenders.
Boucher, 51, of Florida, also pleaded guilty to conspiracy to commit wire fraud. In November 2014, she was sentenced to 10 months in prison and ordered to pay restitution.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
New York Man Admits Supplying Falsely Remarked Computer Chips Used in U.S. Military HelicoptersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY KRANTZ, 50, of New York, N.Y., waived his right to indictment and pleaded guilty today in Hartford federal court to supplying customers with falsely remarked microprocessor chips, many of which were used in U.S. Military and commercial helicopters.
“The distribution of unapproved microprocessor chips and other electronic components for use by the U.S. Military poses a serious threat to the safety of the men and women of our armed services,” said U.S. Attorney Daly. “Individuals who choose profit over public health and safety will be prosecuted. We thank the Defense Criminal Investigative Service and the U.S. Department of Transportation, Office of Inspector General, for their excellent work on this complex investigation.”
“The charge today is demonstrative of the continued dedication of the Defense Criminal Investigative Service (DCIS) and our fellow law enforcement partners to protect the integrity of the Department of Defense’s supply chain,” said Craig W. Rupert, Special Agent in Charge, DCIS, Northeast Field Office. “Distributors who opt for financial gain by introducing inferior products into mission critical equipment create an environment ripe for product failures. Such disregard puts the warfighter at an unnecessary risk, ultimately impacting the mission readiness of our military that the nation depends on. DCIS will continue to engage with prosecutors to address all who attempt to disrupt the reliability of our military’s critical infrastructure.”
“The actions taken today demonstrate the commitment of the Department of Transportation Inspector General's Office to preventing and detecting fraud in the aerospace manufacturing industry,” said Todd Damiani, regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to uncover suspect unapproved parts, prevent their use, and punish those who seek to compromise the integrity of DOT’s safety programs.”
According to court documents and statements made in court, KRANTZ is the CEO and an owner of Harry Krantz, LLC, a New York-based company that bought and sold, among other things, obsolete electronic parts for use by the U.S. Military and commercial buyers. In 2005, KRANTZ entered into a business relationship with Jeffrey Warga, the president and owner of Rhode Island-based Bay Components, LLC, to sell military microprocessor chips to Bay Components, which would in turn sell them to a Connecticut company. KRANTZ knew that the Connecticut company wanted new and original chips, not falsely remarked chips.
Between 2005 and 2008, KRANTZ purchased and sold, and caused to be purchased and sold, over a thousand chips to Bay Components, which, in turn sold them to the Connecticut company. The chips were marked with certain information, including a certain manufacturer’s name and trademark, a date code, and a military part number. In approximately December 2005, the first shipments of about 330 chips that KRANTZ had sold to Bay Components were rejected by the Connecticut company for being the wrong part because the chip contained the wrong die inside. In 2006, KRANTZ replaced those chips with at least some of the replacement chips bearing the date code 9832. Between 2006 and 2008, KRANTZ sold and caused to be sold at least 900 chips with date code 9832 to Bay Components, the majority of which were sold to the Connecticut company. KRANTZ knew that the chips had originated from a parts supplier in China, and there was a high probability that the chips were falsely remarked not the original chips of the certain manufacturer as represented by the markings on the chip. He also avoided engaging in common practices in the industry, including those which Harry Krantz LLC routinely engaged in for other military parts, to avoid confirming that the chips were likely remarked.
The investigation revealed that many of the chips were used in the assembly of U.S. Military and commercial helicopters. The chips have been examined and determined not to be the root cause of any mechanical problems experienced by the helicopters to date.
KRANTZ pleaded guilty to one count of wire fraud, a charge that carries a maximum term of imprisonment of 20 years and a fine of up to approximately $800,000. He is scheduled to be sentenced on November 2, 2015.
KRANTZ has agreed to pay restitution in the amount of $402,650. He also has agreed not to be directly or indirectly involved in the buying or selling of electronic parts, for a period of up to two years, and to give up all control either directly or indirectly over Harry Krantz LLC, and all beneficial and/or financial interest, including ownership interest, in Harry Krantz, LLC and will not reacquire such an interest.
On December 12, 2014, Warga pleaded guilty to one count of conspiracy to commit wire fraud. He awaits sentencing.
This matter is being investigated by the Defense Criminal Investigative Service and the U.S. Department of Transportation, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Felice Duffy and Special Assistant U.S. Attorney Carol Sipperly.
New Port Richey Man Convicted of Child Exploitation OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Mark Joseph Unrein (62, New Port Richey) guilty of possessing child pornography and using a cell phone and computer to attempt to induce a person he believed was a minor to engage in illegal sexual activity. He faces a maximum penalty of life in federal prison. The sentencing hearing has been scheduled for October 23, 2015.
Unrein was originally indicted on June 26, 2014. On January 14, 2015, a superseding indictment was returned that added the possession of child pornography count.
According to evidence presented at trial, the investigation of Unrein began during a Citrus County Sheriff’s Office child exploitation operation seeking to identify individuals who posed a risk to children in the community. On May 8, 2014, an undercover officer posted a personal ad online posing as a mother who would allow her “12-year-old daughter” to have a sex with a stranger. Unrein responded to the ad on the same day, and began communicating with the undercover officer. Through emails and phone calls, Unrein made arrangements to meet to have sex with the “child.” The next day, Unrein drove to Inverness, where he believed the “mother” and “child” resided. He was subsequently arrested.
After the arrest, agents conducted a search of Unrein’s residence and seized the computer that he had used to communicate with the undercover officer. A forensic examination of the computer revealed numerous images of young children engaged in sexually explicit conduct.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Myrtle Beach Man Enters Guilty Plea to Wire FraudRead the Press Release
Contact Person: John C. Potterfield, (803) 929-3000
Florence, South Carolina ---- United States Attorney Bill Nettles stated today that Shayne Harrison Smith, age 47, of Myrtle Beach, South Carolina has entered a guilty plea in federal court in Florence, to Wire Fraud, a violation of 18 U.S.C. § 1343. United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Information presented at the change of plea hearing established that Mr. Smith was involved in a "mortgage rescue scheme." He convinced distressed home owners that he could negotiate better terms of repayment with their lenders. Mr. Smith required the victims to pay him fees which he used for his own benefit. He encouraged some of the home owners to cease communicating with their lenders and stop making payments to the lenders, because he would take care of everything. Mr. Smith never successfully renegotiated any of the mortgages.
Mr. Nettles stated the maximum penalty for Wire Fraud is imprisonment for 30 years and/or a fine of $1,000,000.
The case was investigated by agents of the F.B.I. Assistant United States Attorney John C. Potterfield of the Florence is prosecuting the case.
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Multi-agency Investigation Leads to Charges Against India Internet-Based Rx Drug SupplierRead the Press Release
PITTSBURGH - A resident of Mumbai, India, has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, conspiracy to misbrand and smuggle drugs, conspiracy to import Schedule IV controlled substances and money laundering, United States Attorney David J. Hickton announced today.
The 14-count indictment named Ramesh Buchirajam Akkela, a/k/a Ramesh Bhai, 44, of Mumbai, India, as the sole defendant.
According to the indictment, Akkela, an Indian Internet-based supplier of prescription drugs - without prescriptions - to U.S. consumers, was charged with 10 counts of mail fraud, conspiracy to misbrand and smuggle drugs, conspiracy to import Schedule IV controlled substances and two counts of money laundering.
Except for the conspiracy counts, each of which is punishable by five years’ imprisonment, all the other counts have a maximum penalty of 20 years. Each money laundering count carries a maximum $500,000 fine, while $250,000 is the maximum fine for the remaining counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, Homeland Security Investigations, U.S. Postal Inspection Service, Pennsylvania State Police and the Internal Revenue Service, Criminal 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.
Monroe County Resident Charged with Attempting to Use Weapon of Mass DestructionRead the Press Release
A Monroe County resident was charged with attempting to use a weapon of mass destruction, an explosive device.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Harlem Suarez, a/k/a “Almlak Benitez,” 23, of Key West, Florida, was charged by a criminal complaint with knowingly attempting to use a weapon of mass destruction against a person or property within the United States, in violation of Title 18, United States Code, Section 2332a(a)(2), punishable by up to life in prison.
According to the allegations contained in the complaint, in April 2015, Suarez came to the attention of the FBI due to Facebook postings which contained extremist rhetoric and promoted the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization (FTO).
The complaint further alleges that Suarez told an FBI confidential human source (CHS) that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack, and be remotely detonated by a cellular telephone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
On July 27, 2015, Suarez took possession of an inert explosive device and was arrested.
“The top priority of the Department of Justice is to protect the security of the American people. The U.S. Attorney’s Office, in collaboration with the FBI, works tirelessly to advance this mission by continuing to thwart home-grown acts of terrorism,” stated U.S. Attorney Ferrer.
“According to the complaint, Harlem Suarez, a self-professed ISIL adherent, knowingly attempted to use a weapon of mass destruction - a backpack bomb - in the United States,” said Assistant Attorney General Carlin. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division.”
“There is no room for failure when it comes to investigating the potential use of a weapon of mass destruction,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI and our local, state and federal partners work around the clock to prevent such catastrophic weapons from being used against our citizens. Even so, we ask the public to be vigilant and report suspicious activity to law enforcement.”
Mr. Ferrer commended the investigative efforts of the FBI, JTTF, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Key West Police Department, Monroe County Sheriff’s Office, and Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Marc S. Anton and Karen E. Gilbert and Trial Attorneys Clement McGovern and Michael Dittoe of the Counterterrorism Section of the U.S. Department of Justice.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Michigan Man Convicted of Fraud and Aggravated identity Theft for Using Fake Charitable OrganizationsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on July 27, 2015, a Michigan man was convicted by a jury of making numerous false statements, identity theft, and engaging in a scheme to operate fake charitable organizations.
Alan Michael Bartlett, 46, from Owosso, Michigan, was found guilty of two counts of mail fraud, 20 counts of bank fraud, five counts of wire fraud, five counts of false statements to the United States Postal Service, and five counts of aggravated identity theft.
Bartlett was tried before Chief United States District Court Judge Ralph R. Beistline, in Anchorage, Alaska.
The evidence presented at trial proved that Bartlett had established two businesses, United States Disabled Veterans, LLC, and United States Handicapped-Disadvantaged Services, LLC, whose alleged mission was “to help provide real jobs for disabled & disadvantaged Americans.” The companies claimed to sell products for donations, the orders for which would “provide jobs for the handicapped.” There were no “jobs,” and the donations received did not go to veterans or the disabled and disadvantaged. Instead, these companies were used by Bartlett between July 2011 and January 2012, in a scheme to defraud individuals and a financial institution in Alaska, and obtain additional monies belonging to individual donors.
The evidence at trial further showed that Bartlett solicited donations through telemarketing calls and through the mailing of brochures from his companies. Upon the receipt of small donations by check, Bartlett created counterfeit demand drafts using information printed on the solicited checks, including the financial institution name, financial institution routing number, and associated customer account number. He then negotiated the counterfeit demand drafts via fraudulent electronic payment transactions for his personal financial gain and benefit - investing in his E*Trade accounts, paying credit card bills, paying for Verizon Wireless telephone service, and paying on his defaulted student loan with the United States Department of Education. He also submitted forged power of attorney forms with falsified notary seals to the financial institution in an effort to get transactions that had been reversed by the financial institution for fraud, credited back to him.
Bartlett used personal identifying information obtained from people who sent donations thinking they were giving to charitable organizations, to submit false change of address requests to the United States Postal Service. He forged the signatures on the change of address requests and listed the street address of his residence in Owosso, MI, as the forwarding address. As a result, he received investment and financial information which should have gone directly to donors/victims.
Using the fabricated persona of a municipal law enforcement detective, Bartlett contacted one victim by telephone to dissuade the victim from reporting or providing additional information about Bartlett’s scheme to law enforcement.
Bartlett learned about the telemarketing business and obtained donor call lists when employed by telemarketing companies in Arizona in 2008; those companies were shut down in 2009 by the Federal Trade Commission for making false representations that that they were charities and that donations/purchases would go to help handicapped or disabled people.
Sentencing has been scheduled for October 19, 2015. The law provides for a maximum total sentence of 30 years in prison, and a fine of $250,000 on the fraud and false statement charges. The crime of aggravated identity theft requires a mandatory consecutive two year sentence upon each count of conviction, and a fine of $250,000. Under the federal sentencing statutes, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Ms. Loeffler commends the United States Postal Inspection Service for the investigation of this case.
Miami Resident and ISIL Sympathizer Sentenced to 10 Years in Prison for Illegally Possessing a FirearmRead the Press Release
Miguel Moran Diaz, 45, of Miami, was sentenced yesterday by U.S. District Judge Joan A. Lenard of the Southern District of Florida to the statutory maximum term of 120 months in prison, to be followed by three years of supervised release, following his guilty plea for being a felon in possession of a firearm.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement.
“The U.S. Attorney’s Office is committed to using our law enforcement resources in order to disrupt potential terroristic plots and prosecute those individuals who seek to jeopardize our security,” said U.S. Attorney Ferrer. “Individuals who unlawfully possess firearms and advocate for violent extremism will continue to be identified, prosecuted and brought to justice under the federal sentencing guidelines.”
“Miguel Moran Diaz was an armed, convicted felon who harbored sympathies for the Islamic State of Iraq and Syria,” said Special Agent in Charge Piro. “He called himself a ‘Lone Wolf’ for ‘ISIS.’ This is not a scenario where law enforcement can afford to wait and see what happens next. The FBI and our partners in the Joint Terrorism Task Force investigated and disrupted this threat to South Florida.”
According to court documents and statements made in court, in late January 2015, Diaz came to the attention of the FBI due in part to Facebook postings in the name of “Azizi Al Hariri,” a photo of Diaz possessing a firearm and articles regarding the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization. Thereafter, during a subsequent undercover operation, Diaz told an FBI confidential source that he was a convicted felon and could not purchase a firearm. Diaz asked the confidential source to purchase him a “baby Glock” (a small concealable semi-automatic firearm) and other weapons, in exchange for $500. Diaz proposed that he would arrange to have the guns “stolen” from the confidential source’s vehicle.
Diaz also advised that he already owned a number of weapons, including a rifle, handgun and a Ket Tec 2000 with a collapsible stock that he would use to conceal the firearm. Diaz showed the confidential source photographs of him holding firearms and also displayed a gun that was concealed in his vehicle.
On Jan. 30, 2015, during a meeting with the confidential source in Miami, Diaz described himself as a “Lone Wolf” for ISIS. Diaz indicated that he wanted to acquire a .308 caliber bolt action rifle and intended to scratch “ISIS” into the shell casings. Diaz claimed that after he killed people, authorities would find the shell casings and put the city on lockdown as they attempted to locate the sniper. Diaz also used his iPhone to view Al-Qaida in the Arabian Peninsula’s (AQAP’s) Inspire Magazine website in order to learn how to build bombs.
On Feb. 8, 2015, the confidential source again met with Diaz in Miami in order to conduct target practice with loaded firearms.
On March 20, 2015, the confidential source asked Diaz if he would like to purchase any additional ammunition. Diaz stated that he had approximately 500 rounds of ammunition at his residence, but wanted to purchase 500 additional rounds if the price was good.
On April 2, 2015, the FBI executed a warrant and found Diaz driving a vehicle while in possession of a .40 caliber handgun loaded with 15 rounds of ammunition and a magazine containing 15 addition rounds. A search of Diaz’s residence revealed an additional Kel-tec 2000, .40 caliber rifle and approximately 200 to 300 rounds of .40 caliber ammunition.
U.S. Attorney Ferrer commended the investigative efforts of the FBI and JTTF. The case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert of the Southern District of Florida.
A copy of this press release may be found on the website of the U.S. Attorney’s Office of the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the U.S. District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident and Isil Sympathizer Sentenced to 10 Years in Prison for Illegally Possessing A FirearmRead the Press Release
Miguel Moran Diaz, 45, of Miami, Florida, was sentenced yesterday by United States District Judge Joan A. Lenard to the statutory maximum term of 120 months in prison, to be followed by three years of supervised release, following his guilty plea for being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
According to court documents and statements made in court, in late January 2015, Diaz came to the attention of the FBI due in part to Facebook postings that included a photo of Diaz possessing a firearm and articles regarding the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization.
Thereafter, Diaz told an FBI confidential human source (CHS) that he was a convicted felon and could not purchase a firearm. Nevertheless, Diaz asked the CHS to purchase a handgun and other weapons in exchange for $500. Diaz also advised that he already owned a number of firearms. Diaz showed the CHS photographs of him holding the weapons and displayed a gun that was concealed in his vehicle.
On January 30, 2015, during a meeting with the CHS, Diaz described himself as a “Lone Wolf” for “ISIS.” Diaz indicated that he wanted to acquire a rifle and intended to scratch “ISIS” into the shell casings so that, after an attack, the authorities would find the shell casings and know what group was responsible.
On February 8, 2015, the CHS again met with Diaz in Miami, in order to conduct target practice with loaded firearms.
On March 20, 2015, the CHS asked Diaz if he would like to purchase additional ammunition. Diaz stated that he had approximately 500 rounds of ammunition at his residence, but wanted to purchase 500 additional rounds.
On April 2, 2015, the FBI arrested Diaz while in possession of a .40 caliber handgun, loaded with fifteen rounds of ammunition, and a magazine containing fifteen additional rounds. A search of Diaz’s residence uncovered more firearms and ammunition.
“The U.S. Attorney’s Office is committed to using our law enforcement resources in order to disrupt potential terroristic plots and prosecute those individuals who seek to jeopardize our security. Individuals who unlawfully possess firearms and advocate for violent extremism will continue to be identified, prosecuted and brought to justice under the federal sentencing guidelines,” stated U.S. Attorney Wifredo A. Ferrer.
“Miguel Moran Diaz was an armed, convicted felon who harbored sympathies for the Islamic State of Iraq and Syria. He called himself a ‘Lone Wolf’ for ‘ISIS,’” said George L. Piro, Special Agent in Charge, FBI Miami. “This is not a scenario where law enforcement can afford to wait and see what happens next. The FBI and our partners in the Joint Terrorism Task Force investigated and disrupted this threat to South Florida.”
Mr. Ferrer commended the investigative efforts of the FBI and JTTF. The case was prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert.
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.
Member of Lucchese Organized Crime Family Sentenced to 360 Months in Prison for Racketeering and Other CrimesRead the Press Release
A member of the Lucchese organized crime family of La Cosa Nostra (LCN) was sentenced today to serve 360 months in prison for participating in a racketeering conspiracy and related offenses. Three other members of the conspiracy are scheduled to be sentenced later this week.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District New Jersey made the announcement.
“Nicodemo Scarfo and his associates tried to take La Cosa Nostra corporate, using traditional, strong-arm mob tactics to take over a publicly traded company and loot it like a personal piggy bank,” said Assistant Attorney General Caldwell. “The Justice Department will fight organized crime wherever it may surface – from back alleys to public board rooms – to ensure that crime does not pay.”
“Scarfo and his crew gave new meaning to the term ‘corporate takeover,’ pushing out the legitimate leadership of a publicly traded company and then looting it,” said U.S. Attorney Fishman. “They used false SEC filings, phony consulting agreements and more traditional mob methods to steal $12 million from the company’s shareholders. That’s a risk that investors should never have to take.”
Nicodemo S. Scarfo, 50, of Galloway, New Jersey; Salvatore Pelullo, 48, of Philadelphia, an associate of the Philadelphia and Lucchese LCN families; William Maxwell, 56, of Houston, a Texas attorney; and John Maxwell, 63, of Dallas, were convicted in July 2014, after a six-month trial, of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice.
In addition to sentencing Scarfo to prison, U.S. District Judge Robert B. Kugler ordered Scarfo to forfeit his interest in certain properties and to pay restitution in the amount of approximately $14 million. Pelullo, William Maxwell and John Maxwell are scheduled to be sentenced later this week.
According to evidence presented at trial, since 1989, Scarfo has been a member of the Lucchese family. As a member, he was required to earn money and participate in the affairs of the Lucchese family.
The trial evidence showed that, in April 2007, Scarfo, Pelullo and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly-held company in Texas, by using threats of economic harm to intimidate and remove FPFG’s management and board of directors, and to replace them with persons beholden to Scarfo and Pelullo, including William Maxwell and his brother, John Maxwell. The evidence introduced at trial further demonstrated that, once the takeover had occurred, FPFG’s new board of directors named William Maxwell as “special counsel” to FPFG and John Maxwell as the company’s CEO, positions that they used to funnel approximately $12 million to themselves, Scarfo and Pelullo through fraudulent legal services and consulting agreements. According to evidence presented at trial, Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht, a luxury home, a Bentley automobile and thousands of dollars in jewelry.
The indictment also named as co-conspirators Nicodemo D. Scarfo, or Scarfo Sr., the imprisoned former boss of the Philadelphia LCN family, and Vittorio Amuso, the imprisoned boss of the Lucchese LCN family. Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark and Scarfo’s wife, Lisa Murray-Scarfo – previously pleaded guilty to various charges related to their roles in the conspiracy.
The case was investigated by the FBI’s Newark, New Jersey, Division, with assistance from the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey.
Member of Lucchese Organized Crime Family Sentenced to 30 Years in Prison for Racketeering and Other CrimesRead the Press Release
Three Conspirators to be Sentenced This Week
CAMDEN, N.J. – A member of the Lucchese organized crime family of La Cosa Nostra (LCN) was sentenced today to 30 years in prison for participating in a racketeering conspiracy and related offenses. Three other members of the conspiracy are scheduled to be sentenced later this week.
U.S. Attorney Paul J. Fishman of the District New Jersey and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and made the announcement.
Nicodemo S. Scarfo, 50, of Galloway, New Jersey was sentenced today by U.S. District Judge Robert B. Kugler to 360 months in prison. Scarfo was convicted in July 2014, along with Salvatore Pelullo, 48, of Philadelphia, an associate of the Philadelphia and Lucchese LCN families; William Maxwell, 56, of Houston, a Texas attorney; and John Maxwell, 63, of Dallas, of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before Judge Kugler in Camden federal court.
“Scarfo and his crew gave new meaning to the term ‘corporate takeover,’ pushing out the legitimate leadersip of a publicly traded company and then looting it,” U.S. Attorney Fishman said. “They used false SEC filings, phony consulting agreements and more traditional mob methods to steal $12 million from the company’s shareholders. That’s a risk that investors should never have to take.”
“Nicodemo Scarfo and his associates tried to take La Cosa Nostra corporate, using traditional, strong-arm mob tactics to take over a publicly traded company and loot it like a personal piggy bank,” Assistant Attorney General Caldwell said. “The Justice Department will fight organized crime wherever it may surface – from back alleys to public board rooms – to ensure that crime does not pay.”
According to documents filed in this case and the evidence presented at trial:
Since 1989, Scarfo has been a member of the Lucchese family. As a member, he was required to earn money and participate in the affairs of the Lucchese family.
In April 2007, Scarfo, Pelullo and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas, by using threats of economic harm to intimidate and remove FPFG’s management and board of directors, and to replace them with people beholden to Scarfo and Pelullo, including the Maxwell brothers. Once the takeover had occurred, FPFG’s new board of directors named William Maxwell as “special counsel” to FPFG and John Maxwell as the company’s CEO, positions that they used to funnel $12 million to themselves, Scarfo and Pelullo through fraudulent legal services and consulting agreements. Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht, a luxury home, a Bentley automobile and thousands of dollars in jewelry.
The indictment also named as conspirators Scarfo’s father, Nicodemo D. Scarfo, or Scarfo Sr., the imprisoned former boss of the Philadelphia LCN family; and Vittorio Amuso, the imprisoned boss of the Lucchese LCN family. Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark and Scarfo’s wife, Lisa Murray-Scarfo – previously pleaded guilty to various charges related to their roles in the conspiracy.
In addition to the prison term, Judge Kugler sentenced Scarfo to five years of supervised release and ordered him to forfeit his interest in certain properties and to pay restitution of $14 million. Pelullo, William Maxwell and John Maxwell are scheduled to be sentenced later this week.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. They also thanked the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their roles in the case.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey and Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section.
Defense counsel: Michael E. Riley Esq., Mount Holly, New Jersey
McAllen Man Sentenced for Using Government Vehicle to Deliver CocaineRead the Press Release
McALLEN, Texas ‐ Mario Guadalupe Saenz, 28, of McAllen, has been ordered to federal prison following his conviction of attempting to possess with intent to distribute approximately nine kilograms of cocaine, announced U.S. Attorney Kenneth Magidson. Saenz pleaded guilty Jan. 28, 2015.
Today, U.S. District Judge Randy Crane, who accepted the guilty plea, handed Saenz a 135-month sentence to be immediately followed by five years of supervised release. The sentence was enhanced because the defendant possessed a dangerous weapon in the course of committing the offense and because he used Facebook to advertise he could use a vehicle with U.S. government license plates to bring drugs north of the border fence.
On Oct. 9, 2014, Saenz was observed driving a white Dodge Ram registered to the U.S. Department of Agriculture (USDA). He drove through an opening in the border fence and retrieved a bag from the brush near the Rio Grande River in Hidalgo County. He then used the government vehicle to transport the bag to a business parking lot in McAllen where Saenz bragged to an undercover officer that he had waived at the Border Patrol agents during the transport.
Saenz was subsequently arrested as investigators discovered the bag contained approximately 9.39 kilograms of a suspected controlled substance, 1.1 kilograms of which tested positive for the properties of cocaine.
Saenz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by Homeland Security Investigations, USDA-Office of Inspector General and the McAllen Police Department. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Man Pleads Guilty to Using Firearm During Carjacking at St. Croix Educational ComplexRead the Press Release
St. Croix, USVI –James Cruz, 20, pleaded guilty today in District Court on St. Croix to Using a Firearm during a Crime of Violence, United States Attorney Ronald W. Sharpe announced. As part of the plea, Cruz admitted that on February 21, 2015 at the St. Croix Educational Complex, he and an accomplice ordered two people onto the ground at gun point, and then drove off with their pick-up truck. Virgin Islands Police Department (VIPD) officers pursued Cruz and his accomplice, who abandoned the truck and fled on food in the Longpoint area. The officers quickly captured them.
The accomplice is a juvenile and has been adjudicated through the Office of the Attorney General of the Virgin Islands.
A sentencing hearing for Cruz is set for November 24, 2015. Cruz faces a mandatory minimum sentence of seven years in prison. He is detained pending sentencing.
This case was investigated by the VIPD and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Christian H. Stringer.
Man Charged for Failing to Comply with Sex Offender Registration RequirementsRead the Press Release
SCRANTON - The United States Attorney's Office for the Middle District of Pennsylvania announced today that an indictment was returned by a grand jury charging a Wilkes-Barre man with failing to comply with sex offender registrations requirements.
According to United States Attorney Peter Smith, Joseph Brant, age 55, a current resident of the Sherman Hills Apartments in Wilkes-Barre, is charged with being a person required to comply with the Sex Offender Registration and Notification Act by reason of a sexual abuse conviction under the laws of the State of New York. It is alleged that Brant traveled interstate to Pennsylvania and established a residence in Wilkes-Barre but failed to register and update his sex offender registration information in Pennsylvania.
The charges are the result of an investigation by the United States Marshals Service - Scranton and New York offices. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Local Man Sentenced to Prison for Credit Card Fraud and Identity TheftRead the Press Release
Tampa, FL – United States District Judge James D. Whittemore has sentenced Dariel Sardinas Lopez (22, Tampa) to four years in federal prison for credit card fraud and identity theft. He pleaded guilty on April 22, 2015.
According to court documents, Sardinas Lopez produced and trafficked in counterfeit credit cards. These fraudulent credit cards were encoded with the numbers and information of victims whose cards had been “skimmed” at local gas stations. The victims were often unaware their information had been stolen. Sardinas Lopez sold these counterfeit credit cards and also used them to purchase merchandise for himself.
This case was investigated by the Financial Crimes Task Force, which includes the United States Secret Service, the Florida Department of Law Enforcement, the Hillsborough Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
KC Area Man Sentenced to 12 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a homeless man was sentenced in federal court today for illegally possessing a firearm and ammunition.
Shain D. Sohl, 36, with no legal address, was sentenced by U.S. Chief District Judge Greg Kays to 12 years and six months in federal prison without parole.
On Feb. 18, 2015, Sohl pleaded guilty to being a felon in possession of a firearm and to being a felon in possession of ammunition.
On July 15, 2014, Sohl’s ex-wife reported to law enforcement that Sohl had fired a pistol at her while she was driving him in a truck. During the trip, Sohl became verbally abusive toward her and started grabbing the steering wheel. She attempted to pull the truck over and Sohl grabbed her and with his other hand drew a small pistol from his right front pocket and fired one round from it. The bullet grazed the right side of her face near her ear. A Jackson County sheriff’s deputy later located a single bullet that passed through the driver’s seat and then into the rear of the passenger door handle.
According to court documents, Sohl threatened his ex-wife with death and physically assaulted her on multiple occasions, although he had a protective order lodged against him.
On Feb. 25, 2014, the clerk of the Drury Inn Hotel reported suspicious activity to the Independence, Mo., Police Department. The clerk informed police officers that he smelled marijuana in the hallway outside of Sohl’s room and that he wanted the occupants evicted. A records check revealed an outstanding warrant for Sohl. The officers knocked on the door and, after an extended period, Sohl answered. The officers arrested Sohl on his outstanding warrant and received consent to search the room. They found a portable safe that contained a loaded Beretta pistol, 17 syringes, a notepad with dollar figures and $5,709 in cash.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sohl has a prior felony conviction for possession of a controlled substance.
According to court documents, Sohl engaged in a course of conduct over a term of several months that involved multiple instances of aggressive, violent and stalking behavior, including threats to kill his ex-wife and threats to kill her child. He has been found with different firearms on multiple occasions.
This case was prosecuted by Assistant U.S. Attorney Bruce Clark. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Announces Departure of Criminal Division Leader Marshall L. MillerRead the Press Release
After more than 13 years of service as a federal prosecutor, including 16 months as Principal Deputy Assistant Attorney General and Chief of Staff of the Criminal Division, Marshall L. Miller will leave the Justice Department. His last day will be Friday, July 31, 2015. David Bitkower has been selected to assume the position following Miller’s departure.
“Marshall Miller is an outstanding attorney, a remarkable public servant, and an unwavering advocate for the principles of justice,” said Attorney General Loretta E. Lynch. “Throughout his career in law enforcement – from the Eastern District of New York to Washington, D.C. – he has taken on some of America's most pressing challenges. He has strengthened our country and empowered our communities. And he has demonstrated his commitment to fair application of the law. I commend him for his extraordinary service to the Department of Justice and to the American people, and I look forward to all that he will continue to achieve in the days and years ahead.”
“Throughout his career as a prosecutor, Marshall has inspired his colleagues with his unfailing commitment to the pursuit of justice,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “He has been a real force in the Criminal Division, and has had a strong voice in all the key decisions we have made during my tenure. While Marshall’s departure is a great loss to the department, I am grateful to have someone with David’s experience, intellect and dedication to help guide me in leading the Criminal Division.”
Miller was appointed to his current position on April 17, 2014, from the U.S. Attorney’s Office of the Eastern District of New York, which Miller joined in 1999 as an Assistant U.S. Attorney. While in the U.S. Attorney’s Office, Miller served as Chief and Deputy Chief of the Criminal Division, Chief and Deputy Chief of the Violent Crimes and Terrorism Section and Deputy Chief of the General Crimes Section. He conducted and supervised numerous significant and complex investigations and prosecutions, including cases involving terrorism, organized crime, violent crime, political corruption and financial fraud.
For his work, Miller received a number of the department’s highest awards, including the Attorney General’s Award for Excellence in Furthering the Interests of National Security and the Director’s Award for Superior Performance. He also received the Henry L. Stimson Medal from the New York City Bar Association, the National Intelligence Merit Award from the Director of National Intelligence and a Federal Prosecutor of the Year Award from the Federal Law Enforcement Foundation. In 2009, Miller was recognized for the most outstanding performance by an Assistant U.S. Attorney by the National Association of Former U.S. Attorneys.
Miller has also significantly engaged in the teaching of law. He has served as a professor at New York University (NYU) School of Law, where he founded the NYU Federal Prosecution Clinic at the Eastern District of New York. He also served as an adjunct professor at Fordham University School of Law.
Before joining the department, Miller clerked for U.S. District Judge Allyne R. Ross of the Eastern District of New York. He earned both his undergraduate and law degrees from Yale University.
Since April 2013, David Bitkower has served as a Deputy Assistant Attorney General of the Criminal Division, overseeing the Computer Crime and Intellectual Property Section, the Human Rights and Special Prosecutions Section and the Organized Crime and Gang Section. He has represented the Department of Justice at Congressional hearings and in international fora, including the United Nations Committee against Torture in Geneva.
Prior to joining the Criminal Division, Bitkower was an Assistant U.S. Attorney in the Eastern District of New York. He served most recently as the first Chief of the National Security and Cybercrime Section, and previously served as Chief and Deputy Chief of the Violent Crimes and Terrorism Section. From 2008 to 2009, Bitkower also served on detail to the Justice Department’s Counterterrorism Section of the National Security Division and to the President’s Guantanamo Bay Review Task Force.
Bitkower has received several notable awards, including the Attorney General’s Award for Exceptional Service. Before joining the Department of Justice, Bitkower was a law clerk for U.S. Circuit Judge Pierre N. Leval of the Second Circuit Court of Appeals and for U.S. District Judge Leonard B. Sand of the Southern District of New York. He is a graduate of Yale University and Harvard Law School, where he served as an editor of the Harvard Law Review.
Jury Convicts Norfolk Man of Tax Fraud SchemeRead the Press Release
NORFOLK, Va. – Ronald Chisholm, 53, of Norfolk, was convicted today by a federal jury on charges of conspiracy, mail fraud, and aggravated identity theft in connection with a scheme to defraud the IRS.
Chisholm originally pleaded guilty on Oct. 6, 2014, and later withdrew his plea. According to court records and evidence presented at trial, Chisholm’s scheme was discovered in 2013 after a local check cashing business noticed one of its employees had cashed over $2 million in U.S. Treasury checks. The employee of the check cashing business identified Ronald Chisholm as the person who paid her $200 per check to cash the treasury checks in violation of the company’s policies. A subsequent IRS investigation determined that Chisholm, along with unidentified co-conspirators, stole the personal identifying information of numerous people and filed at least 810 fraudulent income tax returns. As a result of these false returns, Chisholm and his co-conspirators received a total of $2.6 million in fraudulent income tax refunds.
Chisholm faces a maximum penalty of 128 years in prison when sentenced on Nov. 9, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the verdicts were accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-132.
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Indictment Unsealed Charging Three New Orleans East Residents with Federal Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced the unsealing of an eleven-count Indictment yesterday charging LEROY SMITH, age 31, JAMIE JONES, age 32, and KENNETH MIXON, age 31, all of New Orleans East, with violations of federal drug and firearms laws. All of the defendants face the lead charge of conspiracy to distribute and possess with intent to distribute heroin, along with other substantive drug offenses. All of the defendants were charged with using a telephone in furtherance of their drug conspiracy. Defendants SMITH and JONES were also charged with possessing firearms in furtherance of the drug offenses. Finally, SMITH was charged with being a convicted felon in possession of a firearm.
If convicted of the drug conspiracy, SMITH and JONES face a minimum sentence of 5 years incarceration, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, and a minimum of four years of supervised release. On the drug conspiracy, MIXON faces a maximum sentence of 20 years incarceration, a fine of not more than $1,000,000, and a minimum of three years of supervised release. On the telephone counts, the defendants face a maximum sentence of 4 years incarceration, a fine of not more than $250,000, and a maximum of three years of supervised release. For possessing the firearms in furtherance of the drug offenses, SMITH and JONES face a minimum sentence of 5 years incarceration, a fine of not more than $250,000, and a maximum three years of supervised release. Lastly, on the felon in possession charge, SMITH faces a maximum sentence of 10 years incarceration, a fine of not more than $250,000, and a maximum three years of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.
Indictment Charges Philadelphia Resident with Illegal ReentryRead the Press Release
Joel Junior Lantigua-Lora, 28, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about June 24, 2015, Lantigua-Lora, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about August 23, 2012.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Independence Man Sentenced to 15 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for attempting to produce child pornography by secretly recording videos of unsuspecting victims in restrooms and changing rooms in various businesses at Independence Center and elsewhere.
Nicholas A. Braile, 26, of Independence, was sentenced by U.S. District Judge Gary A. Fenner to 15 years in federal prison without parole.
On Feb. 18, 2015, Braile pleaded guilty to two counts of attempting to produce child pornography. Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
Braile was arrested at a Walmart store in Independence on May 15, 2014, when a Walmart security guard caught him taking an “up skirt” photo of a female customer with his cell phone. Law enforcement officers arrested Braile and obtained search warrants for his cell phone and residence, where they seized a desktop computer and a laptop computer.
Investigators located video files on the desktop computer of women and girls changing in store dressing rooms, videos taken in the restroom at Braile’s work place (Harbor Freight Tools in Independence) and “up skirt” video files from several businesses at Independence Center. All of the businesses involved in the investigation cooperated fully with law enforcement officers.
The store manager at Harbor Freight Tools identified photographs of two teenage victims as store employees. The photographs were taken from videos that depicted the teens using the restroom and changing clothes at Harbor Freight Tools. Braile also filmed customers who used the restroom, including adults and small children. Detectives observed the restroom where the videos had been produced. There was a small section of the ceiling where the ceiling tile was missing. This restroom was next to a janitor closet. Located in the ceiling of the janitor closet was a paint roller, without the brush, that was positioned over the hole in the ceiling tile in the restroom. Detectives surmised that the paint roller was used to hold Braile’s cell phone over the hole in the ceiling tile so that he could film the teens in the restroom without their knowledge.
Detectives determined that a victim in one of the “up-skirt” videos located on Braile’s computer worked at a store in Independence Center. The store manager identified the 16-year-old victim. The video depicts Braile asking the victim for assistance and then, because of his close proximity to her, Braile is able to maneuver his phone into a position to film up the victim’s skirt.
Braile’s cell phone contained several “up skirt” and dressing room videos from dates shortly prior to his arrest. In several videos, Braile followed females around stores until he was able to get his phone under their skirt. In one video he looked under a dressing room stall and moved to another dressing room to get closer to a female victim. In another instance a prepubescent girl was standing next to her father when Braile took a video up her skirt.
The forensic examination of Braile’s computers and phone also located approximately 468 photographs he had taken of prepubescent female children. These images were taken at Braile’s work place and at Independence Center. The images depict children shopping with their parents. There is no nudity in the images but they focus on the buttocks and crotch area of the children.
The forensic examiner also located child pornography that had been downloaded from the Internet. The collection, most of which was located on a laptop computer, included 138 video files of child pornography. There were also so-called “modeling images” of young girls approximately 9 to 14 years of age.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hospice Company Owner Sentenced to Serve Three Years in Prison and Pay over $2.5 Million in Restitution for Medicare FraudRead the Press Release
Oklahoma City, Oklahoma – PAULA KLUDING, 39, from Chandler, Oklahoma, the owner of Prairie View Hospice, Inc., an Oklahoma corporation located in Chandler, was sentenced by United States District Judge Robin Cauthron to serve three years in prison for committing Medicare fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. As part of her sentence, Kluding was also ordered to pay $2,519,813.33 in restitution to Medicare. Kluding will also spend three years on supervised release following her release from prison.
According to evidence presented at trial, Prairie View Hospice was in business to provide hospice care to Medicare beneficiaries. Hospice care consists of providing health care, medication, medical equipment, and other goods and services to terminally ill patients. From July of 2010 through July of 2013, Kluding conspired with others to conceal the true medical condition of Prairie View Hospice’s patients and the true quality and quantity of health care services they were receiving in order to "pass" a Medicare audit and to fraudulently obtain money from Medicare. Specifically, certain medical documents were falsified to make it appear that nurses had visited patients or conducted necessary assessments when such visits and assessments had not, in fact, been made. Nursing notes were also falsified to make it appear that patients were in worse health than they actually were in order to justify to Medicare the patient’s continued hospice care. In addition, Prairie View Hospice, acting through Kluding, sent the falsified documents to a Medicare subcontractor in response to requests to audit patient files and in support of claims for Medicare reimbursement.
The trial lasted for four and half days and the jury deliberated about six hours before returning a guilty verdict on 39 separate counts relating to Medicare fraud, conspiracy, obstruction of a federal audit, and making false statements in health care matter. Kluding was ordered to report on August 28, 2015, to the U.S. Bureau of Prisons to begin serving her sentence.
This case is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Amanda Maxfield Green and Jessica Perry.
Grand Junction business owner pleads guilty to income tax evasionRead the Press Release
DENVER – Michael E. Ho, age 69, of Grand Junction, Colorado, pled guilty today before U.S. District Court Judge Christine M. Arguello to income tax evasion, United States Attorney John Walsh, IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. Judge Arguello is scheduled to sentence Ho on October 28, 2015 at 3:00 p.m. Ho was indicted by a federal grand jury in Denver on October 28, 2014, and was arrested on November 13, 2014.
According to the indictment and plea agreement, Ho owned and managed a dental clinic formerly known as Skyline Dental located in Grand Junction, Colorado from approximately 1999 through at least 2004 in which he employed licensed dentists to provide dental services to patients. Skyline Dental operated as a “d/b/a” for the parent corporation “Five-O Enterprises” which HO owned and controlled starting in the year 2001. In February of 2004, the State Board of Dental Examiners enjoined the Ho from owning and operating Skyline Dental Clinic based as Ho was never licensed to practice dentistry and the State Board took the position that only licensed dentists are permitted to own Dental Clinics.
Ho sold the practice in December 2004 to a licensed Dentist and Ho was hired to manage the clinic. In 2006, Ho and the owner had a business dispute which resulted in the dentist defaulting on his purchase agreement with Ho. Ho then sold the practice to a different dentist in November of 2006 for $3.5 million hereby Ho was paid a salary for managing the dental practice. In 2010, the Dentist rescinded his contracts with H. Ho in turn converted Skyline Dental clinic to a non-profit corporation, Colorado Community Dental Services “CCDS”, which allowed it to operate under state law without a dentist as its owner An Asset Purchase Agreement was executed between Five-O Enterprises and CCDS in the amount of $2 million. HO continued to manage Colorado Community Dental Services but did not receive a salary and did not hold a position on the Board of Directors.
During this same period, Ho also operated Preventative Dental as a d/b/a of Five-O Enterprises which sold dental plans to individuals and were then able to receive discounted dental services by the designated provider, Skyline Dental and later Colorado Community Dental Services. Ho received the income from Preventative Dental.
Ho evaded income tax due and owing by committing affirmative acts of evasion. Between 2006 and 2011, the Government has determined that $235,450 is the total tax due and owing by Ho. In an attempt to evade assessment of taxes by the IRS, Ho took a series of steps to include, but are not limited to, utilized multiple bank accounts (a personal account and business accounts) which he commingled funds from his various income producing activities making the assessment of tax difficult; he received interest income from the sale of Skyline Dental and did not report the interest income to his accountant in the years 2008 and 2009 when he received interest income of $156,005 and $67,225, respectively; he did not report the income from the sale of discount dental plans to his accountant and thus the income from Preventative Dental was not reported on his tax returns; he deposited cash receipts from Skyline Dental and Colorado Community Dental Services to his personal bank accounts in 2010 and 2011 and did not report the income on his tax returns.
Ho pled to one count of income tax evasion which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Tim R. Neff.
Godfather of Portsmouth Bloods Gang Pleads Guilty to Drug and Gun ChargesRead the Press Release
NORFOLK, Va. – The “Godfather” of the Portsmouth-based Imperial Gangsta Bloods, a set affiliated with the United Blood Nation, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute over one kilogram of heroin.
Christopher Smith, aka Killa, 32, of Portsmouth, Virginia, also pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime. Over the course of the conspiracy, Smith and the Imperial Gangsta Bloods trafficked multiple kilograms of heroin in the Hampton Roads region, and numerous guns were seized during the investigation of the case.
In a statement of facts filed with the plea agreement, from early 2014 until September 2014, Smith and others working at his direction traveled to New York City, where they bought bulk quantities of heroin from Imperial Gangsta Bloods member Ricky Jackson, aka Sosa. The heroin was transported from New York City back to the Hampton Roads area where it was cut and prepared for street-level distribution by other members of the gang, including high-ranking members Junious Whitaker, aka Redd, and Howard Foust, aka Lil’ Howard. (Case details on Jackson, Whitaker, Foust and Stigger are in the table presented below).
In August 2014, Smith and other members of the gang were involved a series of violent altercations with twin brothers Jason and Jeremy Saunders, who ran a separate heroin trafficking organization in Portsmouth. On August 18, 2014, a member of the Imperial Gangsta Bloods gang shot Jeremy Saunders multiple times. Saunders survived the shooting. Days later, Smith, Whitaker and another gang member were involved in a separate shooting incident with the Saunders brothers (both of whom were later convicted in a separate federal drug prosecution). Several weeks after the second August shooting, Smith, Foust and two other individuals were stopped on the Eastern Shore of Virginia on their way back from New York City, where they had purchased approximately 275 grams of heroin.
Smith was indicted by a federal grand jury on April 22, 2015. He faces a maximum penalty of life in prison and a mandatory minimum of 25 years in prison when he is sentenced on October 30, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Name
Age, Hometown
Charges
Status
Christopher Smith
32, Portsmouth
Conspiring to distribute narcotics; possession of firearms in furtherance of a drug trafficking crime
Pleaded guilty July 28. Sentencing October 30, 2015.
Ricky Jackson
37, Hempstead, New York
Conspiracy to distribute narcotics
Pleaded guilty May 28, 2015. Sentencing Oct. 23, 2015.
Junious Whitaker
28, Portsmouth
Conspiracy to distribute narcotics; possession of firearms in furtherance of a drug trafficking crime
Pleaded guilty March 18, 2015. Sentenced June 23, 2015 to 25 years in prison.
Howard Foust
31, Portsmouth
Conspiracy to distribute narcotics
Pleaded guilty Feb. 2, 2015. Sentencing Oct. 23, 2015.
Jermarrieo Stigger
30, Virginia Beach, Virginia
Conspiracy to distribute narcotics; possession of firearms in furtherance of a drug trafficking crime
Pleaded guilty on June 15. Sentencing Sept. 22, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the guilty plea was accepted by U.S. Magistrate Judge Douglas Miller.
This case was investigated by the FBI’s Norfolk field office in conjunction with the ATF, the Portsmouth, Virginia Beach, and Norfolk Police Departments, and the Virginia State Police. This investigation was part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Assistant U.S. Attorneys Andrew Bosse and Joseph DePadilla are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr7.
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Georgia Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISILRead the Press Release
Leon Nathan Davis, 37, of Augusta, Georgia, was sentenced today to 15 years in federal prison by U.S. District Judge J. Randal Hall of the Southern District of Georgia for attempting to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). Davis pleaded guilty to an information charging him with attempting to provide material support to ISIL on May 27, 2015. His prison term will be followed by a lifetime of supervised release.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Edward J. Tarver of the Southern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
“It is the obligation of all nations to serve as responsible global citizens and stem the flow of their residents from traveling abroad as foreign terrorist fighters engaged in the violence and oppression that ISIL is inflicting everywhere it operates,” said Assistant Attorney General Carlin. “One of the National Security Division’s top priorities remains stemming the flow of foreign fighters and bringing to justice those who seek to provide material support to foreign designated terrorist organizations.”
“This defendant planned for over a year to join, assist and fight alongside an enemy of the United States,” said U.S. Attorney Tarver. “His actions were criminal and he now faces a lengthy federal prison sentence. I commend the hard work of the federal and local agents who work to keep our nation safe from terrorist organizations such as ISIL.”
“The details and federal charges in this case provide a clear illustration of the problems that we face as a nation when our own citizens become radicalized in support of a foreign terrorist organization such as ISIL,” said Special Agent in Charge Johnson. “Today’s sentencing of Mr. Davis in federal court, however, clearly illustrates the consequences. The FBI will continue to partner with its various local, state and other federal law enforcement and intelligence agencies as we remain vigilant in identifying, investigating and presenting for prosecution those individuals who would pose a threat to our national security in this manner.”
Evidence produced at the guilty plea and sentencing hearings revealed that for more than a year, an FBI-led team investigated Davis’ attempts to join an overseas designated foreign terrorist organization. Davis was arrested at the Atlanta Hartfield-Jackson Airport in October 2014 on a parole violation, after he had purchased a ticket to fly to Turkey and then traveled from Augusta to the Atlanta airport. Davis has been in custody since his arrest.
Assistant Attorney General Carlin and U.S. Attorney Tarver commended the FBI-led Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Georgia Board of Pardons and Paroles for their work on this case. Carlin and Tarver also expressed gratitude to the U.S. Customs and Border Protection Service and the Atlanta Police Department for their contributions to the investigation.
The case was prosecuted by Assistant U.S. Attorneys Charlie Bourne and Nancy Greenwood of the Southern District of Georgia and Trial Attorney Clement McGovern of the Justice Department’s National Security Division.
Georgia Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISILRead the Press Release
WASHINGTON – Leon Nathan Davis, 37, of Augusta, Georgia, was sentenced today to 15 years in federal prison by U.S. District Judge J. Randal Hall of the Southern District of Georgia for attempting to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). Davis pleaded guilty to an information charging him with attempting to provide material support to ISIL on May 27, 2015. His prison term will be followed by a lifetime of supervised release.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Edward J. Tarver of the Southern District of New York and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
“It is the obligation of all nations to serve as responsible global citizens and stem the flow of their residents from traveling abroad as foreign terrorist fighters engaged in the violence and oppression that ISIL is inflicting everywhere it operates,” said Assistant Attorney General Carlin. “One of the National Security Division’s top priorities remains stemming the flow of foreign fighters and bringing to justice those who seek to provide material support to foreign designated terrorist organizations.”
“This defendant planned for over a year to join, assist and fight alongside an enemy of the United States,” said U.S. Attorney Tarver. “His actions were criminal and he now faces a lengthy federal prison sentence. I commend the hard work of the federal and local agents who work to keep our nation safe from terrorist organizations such as ISIL.”
“The details and federal charges in this case provide a clear illustration of the problems that we face as a nation when our own citizens become radicalized in support of a foreign terrorist organization such as ISIL,” said Special Agent in Charge Johnson. “Today’s sentencing of Mr. Davis in federal court, however, clearly illustrates the consequences. The FBI will continue to partner with its various local, state and other federal law enforcement and intelligence agencies as we remain vigilant in identifying, investigating and presenting for prosecution those individuals who would pose a threat to our national security in this manner.”
Evidence produced at the guilty plea and sentencing hearings revealed that for more than a year, an FBI-led team investigated Davis’ attempts to join an overseas designated foreign terrorist organization. Davis was arrested at the Atlanta Hartfield-Jackson Airport in October 2014 on a parole violation, after he had purchased a ticket to fly to Turkey and then traveled from Augusta to the Atlanta airport. Davis has been in custody since his arrest.
Assistant Attorney General Carlin and U.S. Attorney Tarver commended the FBI-led Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Georgia Board of Pardons and Paroles for their work on this case. Carlin and Tarver also expressed gratitude to the U.S. Customs and Border Protection Service and the Atlanta Police Department for their contributions to the investigation.
The case was prosecuted by Assistant U.S. Attorneys Charlie Bourne and Nancy Greenwood of the Southern District of Georgia and Trial Attorney Clement McGovern of the Justice Department’s National Security Division.
Gautier Man Pleads Guilty to Aggravated Indentity TheftRead the Press Release
Gulfport, Miss – Edgardo Batiz Medina, 33, a resident of Gautier and a native of Puerto Rico, pled guilty today before Chief District Judge Louis Guirola to aggravated ID theft in a case involving the sale of birth certificates and social security cards, U. S. Attorney Gregory K. Davis announced.
Batiz Medina will be sentenced on October 22, 2015 and faces a maximum penalty of two years in federal prison and a $250,000 fine.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Annette Williams is prosecuting the case.
Four Sentenced for Filing over 1100 Fraudulent Tax Returns in South GeorgiaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that the three following defendants were sentenced on July 27, 2015 in United States District Court by the Honorable W. Louis Sands, Senior U.S. District Court Judge.
Patrice Taylor, age 34, of Ashburn, Georgia, was sentenced today to serve 84 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Mrs. Taylor was also ordered to pay restitution in the amount of $1,107,802.00 to the Internal Revenue Service.
Mrs. Taylor pled guilty to the charges on February 11, 2015. As a part of her plea agreement, Mrs. Taylor admitted that she conspired with her husband, Antonio Taylor, and Jarrett Jones to file over 1,100 fraudulent tax returns between January 2011 and February 2013. At least 1,089 of the returns were filed electronically from two IP addresses registered to Mrs. Taylor, both located at their home. From January 2012 to October 2012, a cell phone subscribed to Mrs. Taylor was used to call the Internal Revenue Service’s Automated Electronic Filing PIN Request 114 times.
Evidence presented by the United States at the sentencing hearing further showed that the identities, including the Social Security Numbers of 5 persons who were patients at Tift Regional Hospital were used by Mrs. Taylor to file fraudulent federal income tax returns. Mrs. Taylor was employed at Tift Regional Hospital during the time of the conspiracy. In addition, the Government’s evidence showed that the identities of 531 sixteen year olds were also used to file fraudulent federal income tax returns.
In January 2012, Mrs. Taylor filed her own fraudulent federal income tax return requesting a refund in the amount of $6,776. She claimed a dependent that she was not authorized by law to claim.
Jarrett Jones, aged 38, of Ty-Ty, Georgia, pled guilty to conspiracy to commit wire fraud and aggravated identity theft on October 9, 2014. He was sentenced by Judge Sands to 20 months imprisonment and ordered to pay restitution in the amount of $94,959.00.
Victoria Davis, aged 26, of Cordele, Georgia, entered her guilty plea on July 9, 2014 to one count of theft of government property and one count of aggravated identity theft. She was sentenced to serve 12 months in the Bureau of Prisons and pay restitution in the amount of $6,256.00.
Antonio Taylor was sentenced by Judge Sands on July 28, 2015 to serve 147 months in the Bureau of Prisons for his participation in the conspiracy. He was also ordered to pay restitution in the amount of $1,107,802 to the Internal Revenue Service. Mr. Taylor pled guilty to one count of conspiracy to commit wire fraud and aggravated identity theft on March 13, 2015. He has been in custody since the time of his arrest on March 12, 2014 and remains in custody.
“The stealing of a person’s identity to take money from the United States Treasury wreaks havoc not just on the individual victim, but also on every law-abiding taxpayer. These folks aren’t stealing from nameless, faceless people; they are stealing from each of us,” said U.S. Attorney Michael Moore.
“Identity theft is an ongoing problem in the United States. It is our duty as IRS Criminal Investigation to investigate identity theft and refund fraud and vigorously pursue those individuals who undermine the integrity of the U.S. tax system,” stated Special Agent in Charge Veronica F. Hyman-Pillot. “This case is a good example of solid investigative work on everyone’s part. We are proud to have prevented additional people from being victimized by these individuals, and causing further financial damage and personal inconvenience.”
The case was investigated by the Internal Revenue Service, assisted by the Ashburn Police Department. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Fort Myers Man Sentenced to Prison for Methylone Drug ConspiracyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Titus Lamar Bellot (28, Fort Myers) to five years in federal prison for conspiracy to possess with the intent to distribute the controlled substance methylone. He was convicted by a federal jury on February 13, 2015.
According to the testimony presented during the three-day trial, on April 21, 2014, United States Customs and Border Protection officials at an international mail facility in New York encountered an International Express Mail parcel from the People’s Republic of China. After searching the parcel, they determined that it contained methylone. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations agents made a controlled delivery of the package to an address in Lehigh Acres. Deena Williams, who was convicted after a jury trial on February 5, 2015, accepted the package. Agents then entered the house and discovered that Williams had opened the package and removed the drugs. Bellot came to the house a short time later to pick up the drugs. Further investigation revealed that the package belonged to him.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former Ringleader of Albuquerque-Based Drug Trafficking Organization Sentenced to Fourteen Years in Federal PrisonRead the Press Release
ALBUQUERQUE – Christopher Roybal, 35, the former leader of an Albuquerque-based drug trafficking organization, was sentenced this morning in federal court to 168 months in prison followed by five years of supervised release for his conviction on cocaine trafficking and money laundering charges. Roybal also is required to pay a $184,080.00 money judgment under the terms of his plea agreement.
Roybal was one of the 19 defendants charged in Dec. 2012, with drug trafficking and money laundering charges in a 60-count indictment. The indictment was superseded twice; first in Feb. 2014, to add a 20th defendant and a witness tampering charge, and again in Sept. 2014, to add another witness tampering charge and a heroin trafficking charge.
The charges filed in the case were the result of a 16-month multi-agency investigation into a drug trafficking organization headed by Roybal by which was led by the FBI, IRS and Albuquerque Police Department with assistance from the DEA, the HIDTA Region I Narcotic Task Force and the Bernalillo County Sheriff’s Office. The investigation, code-named “Operation Rain Check,” was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The original indictment charged Christopher Roybal and ten others, with conspiracy to distribute large quantities of cocaine in New Mexico between Aug. 2011 and Dec. 2012. It also charged Christopher Roybal and nine others with conspiracy to distribute marijuana between Oct. 2011 and Dec. 2012. Additionally, the indictment included three separate money laundering conspiracies, 22 money laundering offenses, and 18 “telephone counts,” offenses alleging the use of a communications device to facilitate a drug trafficking offense. The indictment was superseded in May 2014, to add a new charge against George Roybal, 53, of Albuquerque, alleging that he threatened an FBI informant to prevent the informant from testifying at the trial of this case which was then scheduled to begin on May 19, 2014. It was superseded again in Sept. 2014, to add two new charges alleging another defendant attempted to murder an FBI informant to prevent that informant from testifying at the trial of this case which was then scheduled to begin on Nov. 10, 2014, and with distributing heroin in Bernalillo County, N.M., in May 2014.
On Feb. 25, 2015, Christopher Roybal pled guilty to Counts 1, 37, 38, 39 and 40 of the second superseding indictment, charging him with participating in a cocaine trafficking conspiracy, three money laundering conspiracies, and a substantive money laundering offense. In entering his guilty plea, Christopher Roybal admitted that between Aug. 2011 and Dec. 2012, he conspired with others to distribute kilogram quantities of cocaine in Albuquerque and Las Vegas, N.M. He also admitted participating in three conspiracies that laundered the proceeds of his drug trafficking organization. One conspiracy involved the transportation of drug proceeds from Albuquerque to California to pay for marijuana that was distributed by Christopher Roybal’s organization. The second and third conspiracies involved the laundering of Christopher Roybal’s drug proceeds through accounts at a bank and a credit union. As part of his plea agreement, Roybal agreed to forfeit his Albuquerque residence and a 1967 Chevrolet Camaro.
With the exception of one defendant who is participating in a pretrial diversion program under the supervision of the U.S. Probation Office, all 18 defendants have entered guilty pleas.
This case was investigated by the Albuquerque office of the FBI, IRS Criminal Investigation and the Albuquerque Police Department, with assistance from the DEA, the HIDTA Region I Narcotics Task Force and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Joel R. Meyers and Shana B. Long prosecuted the case. Assistant U.S. Attorney Stephen R. Kotz is responsible for litigating the related civil asset forfeiture actions.
The HIDTA Region I Narcotics Task Force is comprised of the Albuquerque Police Department, Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office and the Valencia County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Former Nightclub Owner Sentenced to 12 Years in Prison for Drug and Gun CrimesRead the Press Release
A 40-year-old Olympia, Washington man was sentenced today in U.S. District Court in Seattle, for drug distribution and illegal gun possession announced United States Attorney Annette L. Hayes. STEVEN ASIR THOMAS was convicted of Conspiracy to Distribute Controlled Substances, Money Laundering, Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime and being a Felon in Possession of a Firearm following a six day jury trial in April 2015. At sentencing U.S. District Judge John C. Coughenour said the sentence was driven by the amount of drugs involved and THOMAS’ intent to have an attorney assaulted because of a business dispute involving his nightclub.
“This defendant was brazen in his criminal conduct, bragging about his plans to distribute methamphetamine and cocaine, and launder money through a Seattle nightclub,” said U.S. Attorney Annette L. Hayes. “While he plotted assaults and ways to trade guns for drugs, he didn’t know law enforcement was listening to every word. Now instead of enriching himself at the expense of public safety, he will pay his debt to society by serving time in prison.”
According to records in the case and testimony at trial, THOMAS had owned various nightclubs in the Seattle area, and sought to open a new nightclub near the Seattle Center called “Ice Nightclub”. THOMAS discussed his plans with a person working with law enforcement as well as with an undercover agent. THOMAS claimed the club would be a cover to launder drug money, and would generate cash for additional drug purchases. In October 2013, THOMAS worked to set up a drug deal trading methamphetamine for assault rifles. On three other occasions, law enforcement seized drugs that were either delivered or ordered by THOMAS. In October 2013, THOMAS picked up a pound of methamphetamine from a source and then “sold” it to an undercover agent in Portland, Oregon. About a week later, another two pound load of methamphetamine was seized on a bus headed to Portland – the courier was bringing it to THOMAS. Finally, in March 2014, THOMAS arranged another one pound sale in Portland of highly pure methamphetamine to an undercover agent.
THOMAS used bank accounts set up in the name of Ice Nightclub to launder money he believed to be the proceeds of drug dealing. Some of the money was provided to THOMAS by undercover agents acting as drug dealers in order to ferret out the nature and extent of THOMAS’ wrongdoing. The plan that THOMAS came up with was for drug dealers to give him cash disguised as an investment in the club. Then THOMAS would write a check from Ice Nightclub accounts to an entity connected to the drug dealers to make it appear that the Ice Nightclub was paying for services rendered. THOMAS collected a fee from the “drug dealers” for his assistance in disguising the criminal source of the funds.
Finally, on March 27, 2014, law enforcement executed a search warrant at THOMAS’s residence. They found a loaded Glock 9 mm Model 19 firearm next to his bed. Also in the residence was evidence of drug dealing including cocaine, 14 cell phones, scales, currency bands and evidence of a previous marijuana grow. THOMAS is prohibited from possessing guns due to a felony drug conviction in 2006 in Arkansas.
“Individuals who create businesses that launder profits for drug trafficking organizations should understand that they will actually be the ones paying the price when they forfeit their freedom and the proceeds of their criminal acts,” said Brad Bench, Special Agent in Charge of ICE HSI in Seattle. “The sentencing of this defendant sends a clear message that law enforcement will not tolerate the actions of those who use the cover of legitimate business to conceal cash obtained from drug trafficking and associated acts of violence in order to bring dangerous narcotics into our communities.”
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department.
The case was prosecuted by Assistant United States Attorneys Jerrod Patterson, Nicholas Manheim, and Lisca Borichewski.
Former HUD-OIG Special Agent in Charge Convicted of Making False Statements to Obtain a LoanRead the Press Release
ATLANTA - Herschell Harvell, Jr., a former Special Agent in Charge with the Office of Inspector General for the Department of Housing and Urban Development, has been convicted of two counts of making false statements to First Tennessee National Bank, N.A., to obtain a loan, after a one week jury trial.
“Harvell, who was a federal law enforcement officer with supervisory responsibility for mortgage fraud investigations and other matters involving false statements, violated the law he was sworn to enforce by making false statements to obtain a loan to finance his own private business interests,” said Acting U.S. Attorney John Horn.
“Mr. Harvell’s conviction demonstrates our commitment to bringing to justice all bad actors, even when that misconduct occurs within our very own organization. I am profoundly disappointed at the break down of trust and the violation of laws of this former employee. As this conviction shows, these ethical lapses are neither tolerated nor condoned,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: The Office of Inspector General (OIG) for the Department of Housing and Urban Development (HUD) investigates and prevents fraud and abuse in HUD programs. Harvell began his career with HUD-OIG as a Special Agent and in 2003, was promoted to Assistant Special Agent in Charge for HUD-OIG’s Region 9, which is based in Los Angeles, California, and encompasses several western states. Harvell was promoted in 2008 to Special Agent in Charge for the HUD-OIG region based in Fort Worth, Texas, and later served as the Special Agent in Charge of HUD-OIG’s Region 4, based in Atlanta, Georgia. As a Supervisory Special Agent, Harvell oversaw and supervised mortgage fraud investigations, as well as other matters involving false statements affecting HUD programs.
In 2008, while stationed in Los Angeles, Harvell maintained a portfolio of six rental homes in the Atlanta area, all of which were mortgaged, with monthly payments in various amounts. In addition, between January and March 2008, Harvell acquired and opened a Precision Tune automobile care franchise, also in the Atlanta area. The start-up costs for the owner of a new franchise location, such as Harvell’s, ranged from $100,000 to over $200,000. To fund the costs of his new business, in February 2008, Harvell cashed in a certificate of deposit that he held worth approximately $70,000. Over the next five weeks, Harvell spent this amount and more on his Precision Tune business and other expenses, including payments on his rental homes.
On March 25, 2008, Harvell obtained additional cash by refinancing one of his rental homes. Harvell attended closing and signed a loan application and other documents to obtain a refinance loan for $165,000 from First Tennesse Bank, N.A. Harvell received approximately $23,000 from this loan. Although he had cashed in and spent the certificate of deposit and additional funds, Harvell’s loan application falsely stated that he still owned this certificate of deposit. In addition, Harvell’s loan application falsely stated that he received a total of $6,180 per month in rental income from his portfolio of investment homes. Although some of Harvell’s houses were rented, he was receiving roughly half that amount, or less, on a monthly basis when he closed the loan. Harvell’s loan application also failed to disclose his Precision Tune business and associated costs and liabilities that he was incurring to open that business.
In addition, Harvell’s loan application stated that his permanent residence was in Georgia. During the course of approving the loan, First Tennessee Bank’s underwriter asked Harvell to explain a Los Angeles post office box that appeared on Harvell’s bank statements. The underwriter posed this question to determine whether Harvell had living expenses in Los Angeles that were not disclosed on his loan application. In response to the underwriter’s question, Harvell wrote a letter falsely stating that his employment required him to work in California during the weekdays and that he resided with relatives while on work assignments there. In truth, Harvell lived in Los Angeles and paid rent there, which was not disclosed to the underwriter.
While in Atlanta to close the loan from First Tennessee Bank on March 25, 2008, Harvell applied to a different lending institution for a cash-out refinance loan on a different investment property. When this second loan closed on April 14, 2008, Harvell received over $17,000. Harvell’s loan application contained the same false statements and omissions as his March 25, 2008, loan application to First Tennessee Bank.
Sentencing for Harvell has been scheduled for 2:30 p.m. on October 1, 2015, before United States District Judge William S. Duffey, Jr.
This case is being investigated by the Department of Housing and Urban Development, Office of Inspector General, Special Investigations Division, Washington, DC.
Assistant United States Attorney Douglas W. Gilfillan is prosecuting the case.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Department of Defense Contractor Charged with Making a False Statement and Damaging Army ComputersRead the Press Release
BOSTON – Charges were unsealed today in federal court against a former Department of Defense (DOD) contractor for the U.S. Army in Kuwait for making a false statement on his security clearance form and for damaging Army computers.
Wei Chen, 61, of Westfield, Mass., was charged with one count of making a false statement and one count of damaging computers. The indictment, which was filed on July 23, 2015, was unsealed today after Chen’s arrest.
According to the indictment, Chen, a computer system administrator, applied for a job as a DOD contractor – a job that required him to have a Secret-level security clearance. To obtain that clearance, he needed to complete a questionnaire called the SF86, on which he acknowledged that he knew that a false statement on the form could be punished by imprisonment. Nonetheless, in response to the form’s question about whether he had ever served in a foreign country’s military, Chen falsely answered, “no.” In fact, Chen, who is a naturalized U.S. citizen, served from approximately 1971 to 1976 in an anti-aircraft unit in China’s People’s Liberation Army.
After making this false statement on the SF86, the indictment charges, Chen was hired as a DOD contractor and worked as a system administrator at Camp Buehring, a large U.S. Army base in Kuwait. Chen knew that Army policy prohibited personnel from connecting personally-owned thumb drives to Army computer systems. Chen also knew that personnel were prohibited from connecting even government-owned thumb drives to Army computer systems unless they had received a specific exemption from this policy. Chen had not received such an exemption.
The indictment charges, on approximately June 15 and 16, 2013, in violation of Army computer security policy, Chen connected one or more personally-owned thumb drives to computers at Camp Buehring that were connected to the Army’s unclassified network and the classified Secret-level network. After connecting his personally-owned thumb drive to the Secret-level network server, Chen made an effort to cover his tracks and hide his security violation. Specifically, he deleted network logs on the server that would have documented his connection of the personally-owned thumb drive to the network server. Chen also copied a computer file, containing saved e-mail and documents, from his Secret-level workstation onto his personally-owned thumb drive, in violation of Army computer security policy.
“National events over the past several years have highlighted the critical role that cyber security plays in protecting our national security,” said United States Attorney Carmen M. Ortiz. “Military employees and DOD contractors must understand that, if they lie to obtain a security clearance or intentionally violate computer security policies and then destroy evidence of that violation, they are committing crimes and we will prosecute them.”
“As charged, Mr. Chen lied about his background, violated Army security policies, and attempted to destroy the evidence,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division. “Being granted and appropriately maintaining a Secret or Top Secret security clearance by the U.S. Government to safeguard information on our military bases is a tremendous privilege and responsibility. Failure to uphold that responsibility threatens our national security.”
"Mr. Chen allegedly abused his position as a system administrator to circumvent U.S. Army cybersecurity controls, improperly access classified information, and delete evidence of his wrongdoing," said Daniel Andrews, Director of the Computer Crime Investigative Unit of the U.S. Army Criminal Investigation Command. "Insider threats pose a serious risk to national security and military operations, and we will continue to work closely with our partners to prosecute those who engage in this type of criminal activity."
On the charge of damaging a computer, Chen faces a maximum sentence of 10 years in prison to be followed by three years of supervised release, a fine of $250,000 and forfeiture. On the false statement charge, the maximum sentence is five years in prison to be followed by three years of supervised release, a fine of $250,000 and forfeiture. 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.
U.S. Attorney Ortiz, Special Agent in Charge Lisi and Director Andrews made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Adam Bookbinder, of Ortiz’s Cybercrime Unit, and Stephanie Siegmann, of Ortiz’s Anti-Terrorism and National Security Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Chippewa Cree Official Pleads Guilty to Bribery, TheftRead the Press Release
GREAT FALLS – Former Chippewa Cree Tribal official Timothy Warren Rosette, 52, of Box Elder, pleaded guilty today to two counts of bribery and one count of theft of tribal funds, according to the United States Attorney’s Office. Rosette had been charged in three indictments handed down by a federal Grand Jury investigating corruption in Indian Country. Rosette appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.
Rosette’s sentencing is set for October 29, 2015, at the Missouri River Courthouse in Great Falls.
The maximum sentence on the two counts of bribery is 10 years imprisonment, a $250,000 fine, and three years of supervised release. On the charge of theft from an Indian tribal organization, Rosette faces a maximum sentence of 5 years imprisonment, a $250,000 fine, and three years supervised release. All sentences could be imposed consecutively. Rosette will also be responsible for restitution to repay the tribe for losses associated with his crimes.
Rosette has occupied positions of tribal authority at Rocky Boy’s for several years. During the period of the indictments—April 2009 to December 2012—Rosette served as the Director of the Rocky Boy Health Clinic’s Environmental Health Unit, with authority to select contractors, award contracts and approve contract payments relating to the tribe’s community water supply (lagoons, pipes, sewers, storm drains, etc.). During the same period, Rosette was also the Director of the tribe’s Roads Division with authority to select contractors, award contracts, and approve contract payments relating to the roads, highways, easements, and bridges on the reservation.
The Grand Jury had charged Rosette with accepting hundreds of thousands of dollars in bribes and gifts from Hunter Burns Construction and Dr. James Eastlick, Jr, who held a 49% ownership interest in Hunter Burns Construction. Rosette was also alleged to have received cash kick-backs from Havre businessman Shad Huston, who was acting on behalf of a local trucking company—K Bar K Trucking—and that Rosette facilitated fraudulent claims on behalf of other Huston companies such as TMP Services and K & N Consulting. In Tuesday’s hearing, Rosette admitted taking bribes or gratuities from Eastlick and Huston and accepting and submitting a fraudulent claim from TMP Services in 2012 resulting in a $30,000 loss to the tribe.
Dr. Eastlick previously pleaded guilty to several felonies related to bribery, embezzlement, and tax evasion and was sentenced on March 18 to six years in prison. Huston is currently facing 15 felony charges contained in five separate indictments. He is awaiting trial. Huston’s companies, TMP Services and K & N Consulting, were also indicted and will be tried with Huston.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and Environmental Protection Agency, as well as by the Internal Revenue Service’s Criminal Investigation Division.
Additional details about the crimes to which Rosette entered guilty pleas can be found on PACER in the Government’s Offer of Proof.
Florida Resident Charged with Attempting to Use Weapon of Mass DestructionRead the Press Release
Defendant, Allegedly Inspired by ISIL, Attempted to Obtain Weapons and Explosives to Conduct Attacks
Harlem Suarez, also known as Almlak Benitez, 23, of Key West, Florida, was charged by a criminal complaint with attempting to use a weapon of mass destruction against a person or property within the United States.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
“According to the complaint, Harlem Suarez, a self-professed ISIL adherent, knowingly attempted to use a weapon of mass destruction - a backpack bomb - in the United States,” said Assistant Attorney General Carlin. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division.”
“The top priority of the Department of Justice is to protect the security of the American people,” said U.S. Attorney Ferrer. “The U.S. Attorney’s Office, in collaboration with the FBI, works tirelessly to advance this mission by continuing to thwart home-grown acts of terrorism.”
“There is no room for failure when it comes to investigating the potential use of a weapon of mass destruction,” said Special Agent in Charge Piro. “The FBI and our local, state and federal partners work around the clock to prevent such catastrophic weapons from being used against our citizens. Even so, we ask the public to be vigilant and report suspicious activity to law enforcement.”
According to the complaint, in April 2015, Suarez came to the attention of the FBI due to Facebook posts that contained extremist rhetoric and promoted the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The complaint further alleges that Suarez told the confidential source that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack and be remotely detonated by a cellphone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
On July 27, 2015, Suarez took possession of an inert device and was arrested.
Assistant Attorney General Carlin and U.S. Attorney Ferrer commended the investigative efforts of the FBI, members of the South Florida Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives , U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), the Key West Police Department, the Monroe County Sheriff’s Office and the Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert and Trial Attorneys Clement McGovern and Michael Dittoe of the Justice Department’s Counterterrorism Section.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Florida Man Charged with Bribing Officials at Georgia Military BaseRead the Press Release
A former agent for a large national trucking company was indicted for paying bribes to officials at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, in order to obtain lucrative freight hauling business from the base. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Ivan Dwight Brannan, 60, of Jupiter, Florida, is charged by indictment with one count of conspiracy to bribe a public official and three counts of bribery of a public official.
From 1999 to 2013, Brannan worked as a broker for a national trucking company that delivers both commercial and military freight. According to the indictment, he was paid a commission for each delivery that he arranged.
According to the allegations in the indictment, from 2006 to 2012, Brannan provided cash and other items of value to Mitchell Potts, a former Traffic Office Supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, for the purpose of ensuring that Brannan’s trucking company client was awarded business at MCLB-Albany. The indictment also alleges that Brannan directed truck driver David Nelson to provide cash to both Potts and Jeffrey Philpot, another official in the DLA Traffic Office at MCLB-Albany, to ensure that the trucking company continued to receive MCLB-Albany’s business. According to the indictment, over the course of the conspiracy Nelson paid at least $120,000 in bribes to Potts and Philpot at Brannan’s behest.
In October 2014, Philpot, Nelson and Potts each pleaded guilty to one count of bribery of a public official. They are scheduled to be sentenced on Sept. 29, 2015.
The charges and allegations in an indictment are merely accusations. A defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service and the Defense Criminal Investigative Service. The case is being prosecuted by Trial Attorney John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
Five Charged with Paying and Accepting Bribes and GratuitiesRead the Press Release
Federal charges were filed, by information, against five individuals for paying and accepting bribes and gratuities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Pamela Bondi, Florida Attorney General, and Margaret Moore-Jackson, Special Agent in Charge, United States Social Security Administration, Office of Inspector General (SSA-OIG), Shimon R. Richmond, Special Agent in Charge, Miami Region, United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Irma Davidian, 52, of Boca Raton, is charged with conspiracy to commit bribery in programs receiving federal funds and commit health care fraud; and conspiracy to give a gratuity to a public official, both, in violation of Title 18, United States Code, Section 371.
Gladys Roman, 47, and George Lopez, 35, both of Pompano Beach, are charged in a separate information, with conspiracy to commit bribery in programs receiving federal funds and commit health care fraud, in violation of Title 18, United States Code, Section 371.
Maria Sanchez, 50, of Pembroke Pines, is charged with conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.
Alejandro Lomoso, 56, of Southwest Ranches, is charged with conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.
According to allegations contained in documents filed with the court, Davidian was in the business of representing persons who sought to obtain government benefits, including Social Security, Medicaid and Food Stamp benefits. Davidian would claim that, for a payment ranging from $2,000-$5,000, she could obtain those benefits for individuals regardless of their personal circumstances. Roman was employed by the Florida Department of Child and Family Services (DCF) as an interview clerk and inputted information from those persons applying for Medicaid and Food Stamps benefits into a DCF computer. The Medicaid applications would then be assigned to a DCF case worker whose job title was an Economic Self-Sufficiency Specialist (ESS).
The court documents allege that, in or about April 2009, Roman submitted applications to DCF on behalf of Davidian’s clients and did so from her home or a public library and would add or change information to enhance the application.Davidian repeatedly asked Roman if there was an ESS worker at DCF who Davidian could pay to approve DCF applications.Lopez was an ESS for DCF.His duties included approving or denying requests for Medicaid and Food Stamp benefits.In or about 2012, Lopez agreed that, in exchange for money, he would approve applications submitted by Davidian on behalf of her clients.
In addition, court records allege that every other week, Davidian submitted applications on behalf of her clients to Roman so that they could be forwarded to DCF.Davidian submitted fraudulent documents with some of the applications in order to make it appear that her clients met the benefit requirements. Davidian instructed Roman to assign Lopez as the ESS worker in order to ensure that some of the fraudulent applications would be approved.
According to allegations, Roman would then fraudulently approve benefits for applicants who were not otherwise qualified.If benefits for Medicaid or Food Stamps were properly denied by another DCF employee, Lopez logged into the DCF computer system and overrode the denial and approved the benefits. Beginning in or about 2012 through in or about January 2014, every other week, Davidian paid Roman and Lopez each $500.As a result of the scheme, Roman and Lopez assisted Davidian to seek more than $5,000,000 in fraudulent benefits.
Court records further allege that Sanchez and Lomoso worked as claims representatives for the SSA.From in or about 2008 through in or about early 2011, Sanchez and Lomoso would periodically receive applications from Davidian on behalf of persons seeking SSA benefits.In exchange for payment, Sanchez and Lomoso would expedite and/or modify the application process.Davidian gave, offered, and promised approximately $9,500 in U.S. currency to Lomoso and approximately $13,000-$15,000 to Sanchez in exchange for performing their official acts.
If convicted, Davidian faces a statutory maximum term of imprisonment of 10 years’ imprisonment and/or a fine of up to $500,000 and may be ordered to pay restitution.If convicted, defendants Roman, Lopez, Sanchez, and Lomoso each face a statutory maximum term of imprisonment of 5 years’ imprisonment and/or a fine of up to $250,000 and may be ordered to pay restitution.
In conjunction with the federal charges, the following individuals were arrested and charged by the Florida Attorney General’s Medicaid Fraud Control Unit:
Alexey Mesiatsev, 61, of Wellington, FL
Ilya Massarsky, 38, of Sunny Isles Beach, FL
Lyudmila Ustakova, 46, of Boca Raton, FL
Maryna Makhnyeva, 37, of Boca Raton, FL
Natalya Krichevskaya, 49, of Ft. Lauderdale, FL
Olga Maximova, 53, of Sunny Isles Beach, FL
Sergei Berezin, 43, of Boca Raton, FL
Lyudmila Pereverzeva, 56, of Hallandale Beach, FL
The total loss to the Florida Medicaid program as a result of the defendants alleged conduct is more than $2.7 million.
Mr. Ferrer commended the investigative efforts of the FBI, Florida Attorney General’s Office, SSA-OIG, HHS-OIG, MFCU and the Florida Department of Children and Families OIG.Attorney General Pam Bondi’s Office of Statewide Prosecution will handle the state law violations.The federal matters are being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Thomas P. Lanigan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Suspected Medicaid fraud can be reported to the Department of Justice through www.stopmedicarefraud.gov or 800-447-8477, or the Florida Attorney General’s Office by calling the hotline telephone at 866-966-7226 or by filing a complaint at http://myfloridalegal.com.
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 http://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 http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Convicts Texas Couple of Drug and Money Laundering ConspiraciesRead the Press Release
Aldo Villarreal, 46, of McAllen, Texas, was found guilty today by a federal jury of conspiracy to possess and distribute cocaine and marijuana, and conspiracy to commit money laundering, announced David Rivera, United States Attorney for the Middle District of Tennessee. Villarreal’s wife, Juana Edith Vela-Salinas, 41, also of McAllen, Texas was found guilty of conspiracy to commit money laundering,
The jury returned its verdict following a two-week trial before Senior U.S. District Judge William J. Haynes, Jr.
The evidence at trial showed that, between 2008 and 2011, Villarreal was a manager in an extensive drug operation that distributed hundreds of kilograms of cocaine in Nashville and Atlanta, and distributed hundreds of kilograms of marijuana in Nashville. The evidence at trial was that the drugs were imported from Mexico into Texas before being transported to Atlanta and Nashville. The evidence also showed that Villarreal and Vela-Salinas conspired to launder the proceeds of that drug operation through a variety of methods, including the purchase of used vehicles in Nashville and the subsequent sale of vehicles at El Shadai, a used car lot the defendants owned and operated in Edinburg, Texas.
The underlying federal wiretap investigation was the same investigation about which former Wilson County Sheriff’s Office Deputy John Edwards sought to sell information to targets of the investigation in 2011. Edwards was indicted for obstruction of justice on April 20, 2011, and Judge Haynes sentenced Edwards to serve 220 months in prison on May 2, 2012.
Villarreal faces a maximum penalty of life in prison, and a maximum fine of $10,000,000, for his conviction on the drug conspiracy charge. Both defendants face up to 20 years in prison, and a fine of up to the value of the funds they laundered, for their convictions on the money laundering charge. The parties agreed that the two forfeiture counts alleged in the indictment will be resolved at sentencing by Senior Judge Haynes. A sentencing date has not yet been set.
The case was investigated by the FBI; the DEA; the Internal Revenue Service-Criminal Investigation; the Department of Homeland Security; the Metropolitan Nashville Police Department; the Wilson County Sheriff’s Office, and the Lebanon Police Department. The case was prosecuted by Assistant U.S. Attorneys Brent A. Hannafan and Ben Schrader.
Federal Jury Convicts Florida Man in Resort Timeshare Telemarketing Fraud Conspiracy that Victimized Persons over Age 55Read the Press Release
DALLAS — Following a nine-day jury trial before U.S. District Judge Sidney A. Fitzwater, a federal jury has found one of the ten conspirators in an estimated $10 million resort timeshare telemarketing fraud conspiracy that victimized at least 5000 individuals, many of whom were over age 55, guilty on all 26 counts of an indictment returned in the Northern District of Texas in October 2012. John Parker, U.S. Attorney for the Northern District of Texas, made the announcement today.
Fabian C. Fleifel, 45, of Winter Springs, Florida, was convicted late yesterday on one count of conspiracy to commit mail fraud, wire fraud, and bank fraud; nineteen counts of mail fraud telemarketing; and six counts of wire fraud telemarketing. The jury also found that the conspiracy count affected a financial institution and that the wire fraud and mail fraud counts were in connection with the conduct of telemarketing that victimized ten or more persons over the age of 55. He faces a maximum statutory penalty of 30 years in federal prison and a $1 million fine on the conspiracy conviction and 20 years in federal prison and a $250,000 fine on each of the other 25 convictions. Additionally, the telemarketing enhancements permit the Judge to impose up to an additional 10 years imprisonment. Judge Fitzwater temporarily remanded him into custody following yesterday’s verdict.
The following eleven coconspirators have pleaded guilty to their respective roles in the scheme and are awaiting sentencing, Edmond Charles Burke, 34, of Sanford, Florida; Kari Lynn Cash, 46, of Winter Park, Florida; Kevin Jacob Frater, 35, of Longwood, Florida; Bradley James Gomez, 36, of Longwood, Florida; Rani F. Khoury, 40, of Lake Mary, Florida; Courtney Darrell Lister, 39, of Midland, Texas; Joseph Bud Ramos, 27, of Tennessee; Armanda Nadine Rizkallah, 32, of Oviedo, Florida; Eric Rosado, of Orlando, Florida, Kevin Sanchez of Orlando, Florida, and Cesar Trinidad of Apopka, Florida.
The government presented evidence during trial that Fleifel conspired with others to make unsolicited interstate telephone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. Fleifel and others opened bank accounts and entered into merchant account agreements to process and collect funds raised in the scheme, and they set up phony mailing addresses to collect funds mailed in by timeshare owners.
Fleifel hired and trained telemarketers to work in boiler rooms he set up. These telemarketers were instructed to call timeshare owners using scripted sales pitches that falsely represented, for example, that a bona fide buyer was interested in buying their property, that the buyer had paid money into an escrow account, and that the buyer was ready to close on the property. The telemarketers falsely advised timeshare owners that they would receive all the funds from the sale within days, they must pay a one-time fee to cover the title search and other closing costs, and they would be refunded all fees paid if the sale did not close within 90 days.
After the conspirators obtained money from the timeshare owners, they made additional false and fraudulent statements to lull them and to keep them from investigating the transactions, complaining to law enforcement, or requesting charge backs to their credit cards
The case was investigated by the U.S. Postal Inspection Service and the Orlando Police Department. Assistant U.S. Attorneys C.S. Heath and Joseph M. Revesz are prosecuting.
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Eleven People Indicted in Monroe County Drug ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Scranton has charged ten men and one woman with conspiring to distribute cocaine, cocaine base (crack) and heroin in Monroe County.
According to United States Attorney Peter Smith, the indictment alleges that from at least May 2015 to July of this year, Joseph Morales, age 24, Humberto Morales-Delgado, age 52, both of Pocono Summit, PA, Matthew Morales, Age 22, Mount Pocono, PA, Myles Davis, age 27, Kyme Ashby, age 26, Patrick Hynes, age 18, Sherquille Ernest, age 21, all of Tobyhanna, PA,
Steven Silva-Lugo, age 28, Henryville, PA, Andrew Perez, age 27, Bronx, NY, Nick Monteforte, age 29, Monroe County, PA, and Jayce Bradley, age 54, Shawnee on Delaware, PA conspired to distribute more than half a kilogram of cocaine, more than 280 grams of cocaine base and more than 100 grams of heroin to consumers in multiple locations, in and around Monroe County.
Eight of the defendants, Joseph Morales, Matthew Morales, Morales-Delgado, Silva-Lugo, Ernest, Ashby, Bradley and Hynes were arrested on July 22, 2015 and are in custody. Three remain at large at this time. Anyone with information regarding the whereabouts of Myles Davis, Andrew Perez or Nick Monteforte is asked to contact the Drug Enforcement Administration at (570) 496-1020.
The investigation was the result of a long term cooperative effort of the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the United States Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Peter Hobart.
The defendants face a minimum term of 10 years in prison and a maximum of life imprisonment and fines of up to one million dollars.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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East St. Louis Woman Sentenced for Firearm Violation and Conspiracy to Obstruct JusticeRead the Press Release
An East St. Louis woman, convicted of Transfer of a Firearm to a Felon and Conspiracy to Obstruct Justice, was sentenced to 12 months and 1 day in federal prison on July 27, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Loletha Eckford, 34, of East St. Louis, IL, had previously pled guilty to those offenses on April 2, 2015. Following release from imprisonment, Eckford will serve a 1 year term of supervised release. Eckford was also ordered to pay a $400 fine and a $200 special assessment.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service, Criminal Investigations, Illinois State Police, and East St. Louis, Illinois, Police Department. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Durant Woman Pleads Guilty to Theft by Officer or Employee of Gaming Establishment on Indian LandsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CRYSTAL DEANN AIRINGTON, age 40, of Durant, Oklahoma, pled guilty to THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS, in violation of Title 18, United States Code, Sections 1168(b) and 2, punishable by not more than 20 years imprisonment, up to a $1,000,000.00 fine or both.
The Indictment alleged that from in or about January, 2012 to on or about December 15, 2012, in the Eastern District of Oklahoma, CRYSTAL DEANN AIRINGTON, defendant herein, while an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain on bond pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Desai Sentenced for Distribution of "Ice" and Possession of Multiple FirearmsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Nimesh Vijay Desai, age 33, of Columbus, Georgia was sentenced today by the Honorable Clay D. Land, Chief United States District Judge in Columbus, Georgia. Mr. Desai was sentenced to serve 130 months in prison for distribution of methamphetamine and possession of a firearm during a drug trafficking crime.
On April 13, 2015, Mr. Desai pled guilty to distribution of methamphetamine and possession of a firearm during a drug trafficking crime. He made several sales of methamphetamine, also known as “ice.”, to an undercover agent. A search warrant of Mr. Desai’s residence in June 2012 revealed 15 weapons of various makes and models. He attempted to flee but was captured by the U.S. Marshal’s Service in East Point, Georgia. At that time, he was in possession of methamphetamine and a Colt .45 caliber handgun. Mr. Desai in total is responsible for 26.2 grams of “ice” which he intended to distribute.
“I commend the cooperation of the federal and local authorities in bringing this investigation. Their collaborative efforts took at least one drug dealer and his guns off the streets,” said U.S. Attorney Michael Moore.
The case was investigated by the Muscogee County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Melvin E. Hyde prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Defendant Sentenced for Sexual Abuse on Lake Powell in 2002Read the Press Release
PHOENIX – Yesterday, Blain Arno Pannell, 44, of Taylorsville, Utah, was sentenced by U.S. District Judge Susan R. Bolton to 30 months’ imprisonment and required to register as a sex offender. Pannell previously pleaded guilty to one count of sexual abuse.
“Today’s outcome is a testament to the dedicated work of the National Park Service in diligently investigating a pattern of misconduct that had occurred many years earlier,” said U.S. Attorney John S. Leonardo. “The conviction and sentence should help bring some measure of justice to the victims.”
The evidence presented at sentencing indicated that, beginning around 2002, the defendant engaged in a sexual relationship with his then 16-year-old niece. On one occasion in June 2002, the defendant took his niece and a 17-year-old nephew out on his boat on Lake Powell, provided them with alcohol and marijuana, and then engaged in sexual contact with both of them. The matter was not reported to law enforcement until 2010.
The investigation in this case was conducted by the National Park Service, Investigative Services Branch. The prosecution was handled by Assistant United States Attorneys Patrick Schneider and Dimitra Sampson.
CASE NUMBER: CR-14-08158-SRB
RELEASE NUMBER: 2015-057_Pannell
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Columbus Woman Sentenced to Serve 65 Months for Filing over 180 False Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Danielle Wallace, age 36, of Columbus, Georgia, was sentenced July 28, 2015 to 65 months imprisonment for wire fraud, aggravated identity theft and filing false income tax returns before the Honorable Clay D. Land, Chief U.S. District Court Judge, in Columbus, Georgia. She was also ordered to pay $100,186 in restitution.
Ms. Wallace pled guilty to the charges on May 5, 2015. As a part of her plea agreement, Ms. Wallace admitted she filed over 180 fraudulent tax returns between January 1, 2014 and March 24, 2014. During this time, Ms. Wallace was employed by Blue Cross/Blue Shield fielding telephone calls from customers. She would obtain personal information from the customers during the calls and then file false income tax returns through “Simple Cash 1,” a tax preparation business she owned and operated in Columbus for the sole purpose of filing false claims. The attempted and actual loss, or the amount of funds which was obtained by fraud, is approximately $494,000.
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 is 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 investigations and prosecutions 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.
“In the Middle District of Georgia, we have made fighting financial fraud a priority. These cases require intensive and detailed investigations, and often involve a number of defendants. My advice to the fraudsters is simple – stop breaking the law. If you don’t, we are going to catch you and make every effort to give you a unique personal identification number – one that is found only on a federal prison inmate’s uniform,” said U.S. Attorney Michael Moore.
For more information on the task force, please visit www.StopFraud.gov.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service and the Harris County Sheriff’s Office. Assistant United States Attorneys Melvin E. Hyde, Jr. and Chuck Byrd prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Colombian National Charged in North Dakota with Operating a Continuing Criminal Enterprise from Canadian PrisonRead the Press Release
Acting U.S. Attorney Christopher C. Myers for the District of North Dakota announced today that on July 17, 2015, Daniel Vivas Ceron, 34, of Colombia, North Dakota, was taken into custody in Panama City, Panama, in connection with an indictment from the District of North Dakota charging him with conspiracy to distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, conspiracy to import controlled substances and controlled substance analogues in to the United States resulting in serious bodily injury and death, aiding and abetting the distribution of a controlled substance resulting in death, money laundering conspiracy and continuing criminal enterprise.
Ceron appeared in a Panamanian court on July 20, 2015, and is awaiting extradition to the United States.
The arrest comes as part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs and was significantly aided by the national and international coordination led by the Special Operations Division (S.O.D.), which is a multi-agency near Washington D.C., as part of “Operation Deadly Merchant.” The investigation started in North Dakota on Jan. 3, 2015, with the overdose death of Bailey Henke, 18, of Grand Forks, North Dakota.
The indictment alleges Ceron operated a continuing criminal enterprise while imprisoned in Canada that moved fentanyl and other similar substances from Canada and China into the United States and that those drugs resulted in serious bodily injury and death. If convicted, Ceron faces a maximum sentence of life in prison.
“The cooperation of law enforcement in North Dakota, Oregon, Florida and Canada has been exemplary in this case – these agencies worked tirelessly as one unit to target, identify and dismantle this organization in an effort to prevent additional deaths,” said Acting U.S. Attorney Chris Myers. “The fact that in just a few months this law enforcement team has been able to take this investigation from Grand Forks, across the United States and into Canada is a tribute to the dedication of these agents to public safety in both the United States and Canada.”
“The illegal distribution of fentanyl, as the number of drug overdoses tied to this investigation show, has wreaked havoc across the country,” said Acting U.S. Attorney Billy J. Williams for the District of Oregon. “National problems such as this require a coordinated national response – and that is exactly what our offices have done to hold the perpetrators of this destruction accountable.”
Additional defendants charged in federal court as part of this investigation include:
District of North Dakota
- Jameson Robert Sele, 20, Grand Forks, North Dakota, pleaded guilty to conspiracy to distribute controlled substances and was sentenced on July 27, 2015, to 36 months imprisonment.
- Ryan Jon Jensen, 20, Grand Forks, North Dakota, pleaded guilty on Feb. 27, 2015, to conspiracy to distribute controlled substances resulting in serious bodily injury and death; two counts of distribution of a controlled substance resulting in death and distribution of a controlled substance resulting in serious bodily injury and money laundering conspiracy. Currently awaiting sentencing.
- David Todd Noye Jr., 18, Grand Forks, North Dakota, pleaded guilty on May 4, 2015, to conspiracy to distribute controlled substances. Currently awaiting sentencing.
- Joshua Tyler Fulp, 20, Grand Forks, North Dakota, pleaded guilty on June, 23, 2015 to conspiracy to distribute controlled substances resulting in serious bodily injury and death and money laundering conspiracy. Currently awaiting sentencing.
- Kain Daniel Schwandt, 19, Grand Forks, North Dakota pleaded guilty on July 24, 2015, to conspiracy to distribute controlled substances. Currently awaiting sentencing.
- Brandon Corde Hubbard, 40, Portland, Oregon was indicted for conspiracy to distribute controlled substances resulting in serious bodily injury and death, distribution of a controlled substance resulting in death and money laundering conspiracy. Trial is currently set for Sept. 15, 2015.
District of Oregon
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Steven Fairbanks Locke with conspiracy to distribute and possess with intent to distribute a controlled substance.Trial set for Sept. 15, 2015.
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Channing Lacey with conspiracy to distribute a controlled substance resulting in serious bodily injury, distribution of a controlled substance resulting in death and possession of a controlled substance with intent to distribute.Trial set for Sept. 22, 2015.
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Carissa Marie Laprall with three counts of distribution of a controlled substance resulting in serious bodily injury and possession of a controlled substance with the intent to distribute.Trial set for Sept. 22, 2015.
This case is being investigated by Homeland Security Investigations, Drug Enforcement Administration, Grand Forks Narcotics Task Force, Royal Canadian Mounted Police, Portland Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police, the Grand Forks Police Department and Multnomah County Sheriff's Office.
Acting U.S. Attorney Myers and Assistant U.S. Attorney Scott Schneider are prosecuting the cases in North Dakota; Assistant U.S. Attorney Scott Kerin is prosecuting the cases in the District of Oregon and will be assisting as a Special Assistant U.S Attorney in North Dakota as the investigation moves forward.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
- Jameson Robert Sele, 20, Grand Forks, North Dakota, pleaded guilty to conspiracy to distribute controlled substances and was sentenced on July 27, 2015, to 36 months imprisonment.
Colombian National Charged in ND with Operating a Continuing Criminal Enterprise from Canadian PrisonRead the Press Release
FARGO - Acting United States Attorney Christopher C. Myers announced today that on July 17, 2015, Daniel Vivas Ceron, 34, of Colombia, was taken into custody in Panama City, Panama in connection with an indictment from the District of North Dakota charging him with: (1) Conspiracy to Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death; (2) Conspiracy to Import Controlled Substances and Controlled Substance Analogues in to the United States Resulting in Serious Bodily Injury and Death; (3) Aiding and Abetting the Distribution of a Controlled Substance Resulting in Death (4) Money Laundering Conspiracy and (5) Continuing Criminal Enterprise.
Vivas Ceron appeared in a Panamanian court on July 20th, 2015 and is awaiting extradition to the United States.
The arrest comes as part of “Operation Denial”, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs and was significantly aided by the national and international coordination lead by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of “Operation Deadly Merchant.” The investigation started in North Dakota on January 3, 2015 with the overdose death in Grand Forks of 18-year-old Bailey Henke.
The indictment alleges Vivas Ceron operated a Continuing Criminal Enterprise while imprisoned in Canada that moved fentanyl and other similar substances from Canada and China into the United States and those drugs resulted in serious bodily injury and death. If convicted, Vivas Ceron faces a maximum of sentence of life in prison.
Acting U.S. Attorney Chris Myers stated: “The cooperation of law enforcement in North Dakota, Oregon, Florida and Canada has been exemplary in this case – these agencies worked tirelessly as one unit to target, identify and dismantle this organization in an effort to prevent additional deaths. The fact that in just a few months this law enforcement team has been able to take this investigation from Grand Forks across the United States and into Canada is a tribute to the dedication of these agents to public safety in both the United States and Canada.”
Acting U.S. Attorney Billy J. Williams, District of Oregon, added: “The illegal distribution of fentanyl, as the number of drug overdoses tied to this investigation show, has wreaked havoc across the country. National problems such as this require a coordinated national response – and that is exactly what our offices have done to hold the perpetrators of this destruction accountable.”
Additional defendants charged in Federal court in this investigation include:
District of North Dakota
1. Jameson Robert Sele, 20, Grand Forks, North Dakota – Plead guilty to Conspiracy to Distribute Controlled Substances and was sentenced on 7/27/15 to 36 months imprisonment.
2. Ryan Jon Jensen, 20, Grand Forks, North Dakota – Plead guilty on 2/27/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Two counts of Distribution of a Controlled Substance Resulting in Death;
Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Money Laundering Conspiracy. Currently awaiting sentencing.
3. David Todd Noye Jr., 18, Grand Forks, North Dakota – Plead guilty on 5/4/15 to Conspiracy to Distribute Controlled Substances. Currently awaiting sentencing.
4. Joshua Tyler Fulp, 20, Grand Forks, North Dakota – Plead guilty on 6/23/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death and Money Laundering Conspiracy. Currently awaiting sentencing.
5. Kain Daniel Schwandt, 19, Grand Forks, North Dakota - Plead guilty on 7/24/15 to Conspiracy to Distribute Controlled Substances. Currently awaiting sentencing.
6. Brandon Corde Hubbard, 40, Portland, Oregon - Indicted for Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Distribution of a Controlled Substance Resulting in Death and Money Laundering Conspiracy. Trial is currently set for September 15, 2015.District of Oregon
1. Steven Fairbanks Locke – Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance. Trial set for September 15, 2015.
2. Channing Lacey – Conspiracy to Distribute a Controlled Substance Resulting in Serious Bodily Injury; Distribution of a Controlled Substance Resulting in Death; Possession of a Controlled Substance with Intent to Distribute. Trial set for September 22, 2015.
3. Carissa Marie Laprall - Three counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Possession of a Controlled Substance with the Intent to Distribute. Trial set for September 22, 2015.This case is being investigated by Homeland Security Investigations, Drug Enforcement Administration, United States Postal Inspection Service, Grand Forks Narcotics Task Force, Royal Canadian Mounted Police, Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police, and the Grand Forks Police Department.
Acting United States Attorney Christopher C. Myers and AUSA Scott Schneider are prosecuting the cases in North Dakota. AUSA Scott Kerin is prosecuting the cases in the District of Oregon and will be assisting as a Special Assistant U.S Attorney (SAUSA) in North Dakota as the investigation moves forward.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Cockeysville Youth Group Volunteer Pleads Guilty to Distribution of Child PornographyRead the Press Release
Baltimore, Maryland –Gregory Wayne Gibson, age 63, of Cockeysville, Maryland pleaded guilty today to distribution of child pornography. For the past three to four years, Gibson was a volunteer youth group leader at a church in Baltimore County, working with children ages nine through eighteen. Gibson also assisted with childcare at his wife’s unlicensed home daycare, which included infants.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Gibson’s plea agreement, he has been involved in the collection and distribution of child pornography. In July 2014, a detective from the Baltimore County Police Department (BCPD) downloaded a file containing child pornography that Gibson had made available using a file sharing program. The video file depicted a prepubescent female engaged in sexually explicit conduct with an adult male. On February 24, 2015, a BCPD detective again downloaded a video file made available by Gibson using a file sharing program, which depicted a minor female engaging in sexually explicit conduct. On April 16, 2015, a search warrant was executed at Gibson’s residence and at his employer’s location in Baltimore City. During the searches, investigator’s seized Gibson’s laptops and external hard drives, as well as two flash drives, all of which contained images and/or videos of child pornography.
Gibson voluntarily spoke to investigators admitted to using file sharing software to download child pornography. Child pornography was found during a forensic examination of Gibson’s laptops, external hard drives and flash drives, including the videos downloaded by the BCPD detectives during the investigation. The electronic media contained in excess of 260,000 images and videos. A preliminary review of those files revealed that the majority of these files depicted minors engaging in sexually explicit conduct. There were also a significant number of images of child erotica and of images and videos depicting infants and toddlers engaging in sex acts with adults, including images and videos depicting bondage and anal penetration.
The forensic analysis of the digital evidence seized from Gibson’s residence and place of employment revealed that Gibson was acquiring images of child pornography as recently as five days before the state search warrant was executed.
As part of his plea agreement, Gibson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Gibson faces a minimum mandatory sentence of five years in prison and a maximum of 20 in prison followed by up to lifetime of supervised release for distribution of child pornography. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 26, 2015 at 3:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, the Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Arkansas man sentenced to 15 years in federal prison for traveling to Colorado with the intent to engage in illicit sexual conduct with childrenRead the Press Release
DENVER – Donnie Waldo, Jr., age 48, of Dover, Arkansas, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 180 months (15 years) in federal prison for traveling with intent to engage in illicit sexual conduct with children, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David Thompson announced. Following his prison term, Judge Moore also ordered Waldo to serve 10 years on supervised release. The defendant, who appeared at the hearing in custody, was remanded at its conclusion.
Waldo was charged by Criminal Complaint on November 10, 2014. He was indicted by a federal grand jury in Denver on November 17, 2014. The defendant pled guilty on March 20, 2015.
According to court documents, starting in October of 2014, an undercover HSI agent initiated an investigation targeting individuals using a specific website to sexually exploit children. The free website allows users to create profiles and post pornographic videos and pictures based on their sexual interests. The website included groups called “incest,” “jailbait” and “teen”. Members can post advertisements in the “classified” section seeking to meet members with the same sexual interests, such as incest and rape.
During the course of the investigation the undercover agent came across an advertisement on the website, which stated: “I am a 47 year old man I am 6’3” tall weight 220 lbs at the present time I am married but me and my wife cant have children together I am interested in finding a woman to have an incest relationship with I want to start an incest family with a nice woman who is seeking the same thing I want a woman who is interested in me breeding her if this is you then lets talk” (sic).
On October 2, 2014, an undercover HSI agent working in an online undercover capacity in Greeley as a single mother with two young daughters responded to the advertisement. The undercover agent in the single mother persona and the target conducted numerous chats online – mostly involving the prospect of him having a sexual relationship with the undercover agent’s persona and her two daughters, ages 10 and 14. During one of the chats, the target allegedly stated that he wanted a “very open relationship . . . openly having sex with you (the single mother persona) and both daughters” and further discussed that he wanted to impregnate the single mother’s persona and both daughters.
Further investigation revealed that the ad was posted by Arkansas resident Donnie Waldo. Waldo made arrangements with the single mother persona to travel to Denver to meet and engage in sexual relations with the mother and her two daughters. On November 10, 2014, Waldo boarded a flight from Little Rock, Arkansas to Atlanta. In Atlanta, he boarded a flight to Denver, where he was arrested by HSI agents.
“Defendant’s chilling conduct – he travelled to Colorado with the hope and intention of sexually abusing two young children – earned him every minute of the 15 year sentence imposed by the Court,” said U.S. Attorney John Walsh.
“HSI special agents aggressively pursue sexual predators who target children, which preemptively rescues untold future victims,” said David A. Thompson, special agent in charge of HSI Denver. “This significant prison sentence awarded to Donnie Waldo will undoubtedly save some children the horror of being sexually victimized.”
This case was investigated by HSI. The defendant was prosecuted by Assistant U.S. Attorney Alecia L. Riewerts.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."