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27 August 2015
Groton Man Involved in Cocaine Trafficking Ring Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEAN NEGRON, also known “Pollo,” 24, of Groton was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 19 months of imprisonment, followed by five years of supervised release, for his role in a cocaine trafficking ring.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
The investigation revealed that Juan G. Cheverez, known as “Guinchi,” and Juan Hernandez, known as “Johnny,” received kilogram-quantities of cocaine in the mail from Axel Matta Figueroa, known as “Joelito,” in Puerto Rico, and then distributed the drug in southeastern Connecticut. Cheverez and Hernandez used NEGRON and others to transport their cash to Puerto Rico and to package and mail the cocaine back to the Connecticut area. In Connecticut, NEGRON accepted packages that had been delivered from Puerto Rico and, at times, distributed cocaine to Cheverez’s customers.
On November 25, 2014, NEGRON pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
Cheverez, Hernandez and Matta Figueroa also pleaded guilty. On February 18, 2015, Cheverez was sentenced to 77 months of imprisonment and, on November 20, 2014, Matta Figueroa was sentenced to 66 months of imprisonment. Hernandez awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
Gasport Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Christopher Wittcop, 44, of Gasport, NY, who was convicted of possessing child pornography, was sentenced to 84 months of imprisonment and 10 years supervised release, by U.S. District Judge Richard J. Arcara. The defendant will also be required to undergo sex offender treatment and register as a sex offender.Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that Wittcop possessed child pornography on a laptop computer in Lockport, NY on July 18, 2011. A forensic analysis determined the computer contained over 600 images and video files of child pornography. Wittcopp used peer to peer software to share the images with others through the Internet.
The plea is the culmination of an investigation on the part of officers of the Federal Bureau of Investigation Cyber Task Force and the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour.
Gainesville Man Charged in Child Exploitation CaseRead the Press Release
GAINESVILLE, FLORIDA – A federal grand jury returned an indictment charging Jonathan Marshall Taylor, 46, of Gainesville, Florida with sex trafficking of a minor. Taylor was arraigned today in the U.S. District Court in Gainesville. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, on June 13, 2015, Taylor solicited a person, and that he did so knowing or in reckless disregard of the fact that the person was less than 18 years of age and would be caused to engage in a commercial sex act. The trial is scheduled for October 27, 2015, at 8:30 a.m.
This case resulted from investigations by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, Gainesville Police Department, Alachua County Sheriff’s Office, and the North Florida Internet Crimes Against Children Task Force. It is being prosecuted by Assistant United States Attorney Frank Williams.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Four Plead Guilty in Health Care Fraud ConspiracyRead the Press Release
BROOKLYN, NY – Earlier today, Jeffrey Suh, Kang Young Chung, Sophia Lin, and Emily Shim pleaded guilty to conspiring to commit health care fraud in connection with a $4 million health care fraud scheme.
Today’s guilty pleas were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations’ New York Region (HHS-OIG), and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
The defendants were charged as part of a nationwide Medicare Fraud takedown in June 2015.
According to court filings and facts presented during the plea proceeding, from approximately December 2010 through June 2013, the four defendants at Plaza Medi Group, Inc. and New Plaza Group, Inc., located in Flushing, NY, submitted more than $4 million in false claims to Medicare for physical therapy, occupational therapy and chiropractic services that were not medically necessary, were often not provided, and otherwise did not qualify for reimbursement.
“Clinic owner Jeffrey Suh and his employees defrauded Medicare for personal financial gain, and they now will be held to account for their crimes,” stated Acting United States Attorney Currie. “Health care fraud prevention is a priority of the Department of Justice and this office. We are committed to preserving the resources of the Medicare program for truly needy recipients.”
The fraud scheme that Mr. Suh and his employees engaged in was motivated by nothing more than greed,” said HHS-OIG Special Agent-in-Charge Lampert. “HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves by victimizing participants of the Medicare program.”
“Public health insurance programs, such as Medicare, incur staggering financial losses when their programs are exploited. Today, the defendants in this scheme have admitted to their illegal behavior and will now be held accountable for the error of their ways as they face the due process of law,” stated FBI Assistant Director-in-Charge Rodriguez.
Today’s guilty pleas took place before United States Magistrate Judge Steven M. Gold. When sentenced, the defendants face up to 10 years in prison, as well as restitution to reimburse Medicare for the false claims paid, fines and forfeiture of $2,808,190 for Suh, $2,183,012 for Chung, $272,641 for Lin, and $115,136 for Shim.
The government’s case is being prosecuted by the Office’s Business and Security Fraud Unit. Assistant United States Attorneys Sylvia Shweder and Whitman Knapp are in charge of the prosecution, with assistance provided by Assistant United States Attorney Karin Orenstein of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendants:
JEFFREY SUH
Age: 55
Bay Side, New YorkKANG YOUNG CHUNG
Age: 42
Woodside, New YorkSOPHIA LIN
Age: 34
Rocky Point, New YorkEMILY SHIM
Age: 40
Flushing, New YorkE.D.N.Y. Docket No. 15-CR-300 (CBA)
Four Jacksonville Residents Plead Guilty to Immigration FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that four Jacksonville residents who were born in the Philippines have pleaded guilty to immigration fraud offenses. Mark Laurence Barlaan (36) and Winnie Rabaya Barlaan (65) pleaded guilty to marriage fraud and face a maximum penalty of five years each in federal prison. Peter Laforteza Barlaan (63) pleaded guilty to immigration document fraud and Mary Helen Amaba Barlaan (32) pleaded guilty to obtaining U.S. citizenship by fraud. They each face a maximum penalty of 10 years in federal prison. In their plea agreements, Mark and Mary Barlaan have agreed to leave the United States after the completion of the legal proceedings and any prison sentence imposed by the Court. The sentencing dates have not yet been set.
According to court documents, Winnie and Peter Barlaan are naturalized U.S. citizens. Mary Barlaan entered the United States with a temporary visitor’s visa in November 2007, and Mark Barlaan entered the country with a temporary work visa in December 2008.
Mark Barlaan is Peter Barlaan’s son. Before Mark and Mary Barlaan came to the United States, they were involved in a romantic relationship with each other, and that relationship continued after they came to the United States.
On September 9, 2009, the day after Peter Barlaan became a U.S. citizen, he married Mary Barlaan, his son’s girlfriend. On October 25, 2011, Mark Barlaan and Winnie Barlaan were married. Peter Barlaan paid Winnie Barlaan several thousand dollars in exchange for her marrying Mark Barlaan and cooperating in the immigration proceedings.
Under U.S. immigration law, aliens married to U.S. citizens are given priority in the granting of immigration benefits. By marrying U.S. citizens, Mark and Mary Barlaan could obtain these benefits faster and without meeting the requirements applicable to persons who are not married to U.S. citizens. In an attempt to conceal the fact that they had committed marriage fraud, these individuals made false statements on documents they had submitted to immigration authorities, and that made false statements during interviews and other encounters with immigration officials.
On June 5, 2013, Mary Barlaan became a naturalized citizen of the United States. Because she obtained her citizenship by fraud, her conviction will result in a revocation of citizenship by the Court.
"Marriage fraud is a federal crime, and can have grave consequences for national security," said Susan L. McCormick, special agent in charge of HSI Tampa "Defrauding the U.S. government is not a victimless crime."
"As an agency of the U.S. Department of Homeland Security, USCIS has zero tolerance for marriage fraud," said Kathy Redman, USCIS Southeast Regional Director. "We remain vigilant in detecting and assisting in the prosecution of any immigration fraud."
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Four Individuals Sentenced for Biodiesel Production FraudRead the Press Release
Dean Daniels, 52, Richard Smith, 57, Brenda Daniels, 45 and William Bradley, 58, all of Florida, pleaded guilty and were sentenced today in U.S. district court for charges related to a scheme involving the false production of biodiesel.
Dean Daniels was sentenced to 63 months incarceration, Bradley was sentenced to 51 months incarceration, Smith was sentenced to 41 months incarceration and Brenda Daniels was sentenced to 366 days incarceration. In addition, the court sentenced the defendants to pay $23 million in restitution.
Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Carter M. Stewart for the Southern District of Ohio, Acting Special Agent in Charge Troy N. Stemen for the Internal Revenue Service Criminal Investigation (IRS) and Acting Special Agent in Charge Jeffrey Martinez of the Environmental Protection Agency’s (EPA) Criminal Enforcement Program in Ohio and Regional Special Agent in Charge Max D. Smith of the Department of Transportation’s Office of Inspector General announced the sentences handed down today by Senior U.S. District Court Judge James L. Graham.
According to court documents, the defendants profited by unjustly generating and selling biodiesel credits (RINs) and unjustly claiming biodiesel tax credits for the production and blending of fuel that was not actually biodiesel.
“Congress enacted incentives for the production of biofuels to make the United States stronger and more energy independent and to move our energy economy into the 21st century,” said Assistant Attorney General Cruden. “The fraud perpetrated by the defendants threatens these important public policies. The Justice Department will vigorously prosecute those seeking to line their pockets using scams like this one.”
The defendants were all employees and officers of New Energy Fuels LLC, a business in Waller, Texas, that claimed to process animal fats and vegetable oils into biodiesel. The defendants subsequently relocated, operating a similar scheme at Chieftain Biofuels LLC in Logan, Ohio.
The defendants would purchase low-grade feedstock and perform minimal processing to produce a low-grade fuel. The fuel was not biodiesel, however, the defendants would represent to the EPA that they had produced biodiesel. They would generate fraudulent biodiesel RINs and sell them to various third parties. Biodiesel RINs cannot be generated unless the biodiesel produced meets industry standards. In total, the defendants sold over $15 million worth of fraudulent biodiesel RINs.
The defendants also made false claims to the IRS in order to obtain the biodiesel tax credit that they were not eligible to receive. Throughout 2009, 2010 and 2011, refundable tax credits were available for renewable fuel producers. If companies complied with IRS regulations, they could earn one dollar per gallon of biodiesel. It was illegal to claim this tax credit unless the biodiesel was produced, blended and sold in compliance with rules and regulations. Among other requirements, the biodiesel had to meet industry standards, which the defendant’s fuel did not. In total, the defendants claimed over $7 million in false biodiesel tax credits.
In addition, New Energy Fuels’ production process generated substantial hazardous by-products. Defendant Dean Daniels arranged for an employee of New Energy Fuels to transport the wastes off-site at night. That employee, Lonnie Perkins, previously pleaded no-contest in Texas to several charges related to the dumping of hazardous waste in and around the city of Houston.
“The Renewable Fuel Standard helps reduce the climate impact of transportation fuel sold in this country,” said Acting Special Agent in Charge Martinez. “The criminal activity by these defendants has real consequences. The defendants manipulated and utilized federal governmental programs to line their pockets by fraud. These guilty pleas demonstrate EPA’s commitment, working closely with our partners at the Department of Justice, to pursue these criminal cases vigorously. Companies and their managers need to understand there are serious consequences to skirting the rules and undermining the integrity of an EPA program.”
“Today’s sentencings mark the successful end of an investigation that uncovered a complicated fraudulent scheme that generated millions of dollars through false biodiesel tax credits,” said Acting Special Agent in Charge Stemen. “We want everyone to take advantage of the deductions and credits to which they are entitled by law; however, no one is entitled to defraud the government."
“The Office of Inspector General is committed to investigating and seeking prosecution of those who choose to endanger the public by illegally transporting, distributing, or disposing of hazardous materials,” said Regional Special Agent in Charge Smith. “Today’s sentencing should send a clear warning that these fraudulent actions and illegal hazmat violations will not be tolerated.”
Each of the defendants pleaded guilty to conspiracy to commit wire fraud and to defraud the United States. Dean Daniels also pleaded guilty to offering a hazardous material for transport without providing or affixing proper placards.
Assistant Attorney General Cruden and U.S. Attorney Stewart commended the cooperative investigation by law enforcement, including the Houston Police Department, as well as Department of Justice Trial Attorney Adam Cullman and Assistant U.S. Attorney J. Michael Marous, who represented the United States in this case.
Four Individuals Sentenced for Biodiesel Production FraudRead the Press Release
WASHINGTON – Dean Daniels, 52, Richard Smith, 57, Brenda Daniels, 45 and William Bradley, 58, all of Florida, pleaded guilty and were sentenced today in U.S. district court for charges related to a scheme involving the false production of biodiesel.
Dean Daniels was sentenced to 63 months incarceration, Bradley was sentenced to 51 months incarceration, Smith was sentenced to 41 months incarceration and Brenda Daniels was sentenced to 366 days incarceration.
Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Carter M. Stewart for the Southern District of Ohio, Acting Special Agent in Charge Troy N. Stemen for the Internal Revenue Service Criminal Investigation (IRS) and Acting Special Agent in Charge Jeffrey Martinez of the Environmental Protection Agency’s (EPA) Criminal Enforcement Program in Ohio and Regional Special Agent in Charge Max D. Smith of the Department of Transportation’s Office of Inspector General announced the sentences handed down today by Senior U.S. District Court Judge James L. Graham.
According to court documents, the defendants profited by unjustly generating and selling biodiesel credits (RINs) and unjustly claiming biodiesel tax credits for the production and blending of fuel that was not actually biodiesel.
“Congress enacted incentives for the production of biofuels to make the United States stronger and more energy independent and to move our energy economy into the 21st century,” said Assistant Attorney General Cruden. “The fraud perpetrated by the defendants threatens these important public policies. The Justice Department will vigorously prosecute those seeking to line their pockets using scams like this one.”
The defendants were all employees and officers of New Energy Fuels LLC, a business in Waller, Texas, that claimed to process animal fats and vegetable oils into biodiesel. The defendants subsequently relocated, operating a similar scheme at Chieftain Biofuels LLC in Logan, Ohio.
The defendants would purchase low-grade feedstock and perform minimal processing to produce a low-grade fuel. The fuel was not biodiesel, however, the defendants would represent to the EPA that they had produced biodiesel. They would generate fraudulent biodiesel RINs and sell them to various third parties. Biodiesel RINs cannot be generated unless the biodiesel produced meets industry standards. In total, the defendants sold over $15 million worth of fraudulent biodiesel RINs.
The defendants also made false claims to the IRS in order to obtain the biodiesel tax credit that they were not eligible to receive. Throughout 2009, 2010 and 2011, refundable tax credits were available for renewable fuel producers. If companies complied with IRS regulations, they could earn one dollar per gallon of biodiesel. It was illegal to claim this tax credit unless the biodiesel was produced, blended and sold in compliance with rules and regulations. Among other requirements, the biodiesel had to meet industry standards, which the defendant’s fuel did not. In total, the defendants claimed over $7 million in false biodiesel tax credits.
In addition, New Energy Fuels’ production process generated substantial hazardous by-products. Defendant Dean Daniels arranged for an employee of New Energy Fuels to transport the wastes off-site at night. That employee, Lonnie Perkins, previously pleaded no-contest in Texas to several charges related to the dumping of hazardous waste in and around the city of Houston.
“The Renewable Fuel Standard helps reduce the climate impact of transportation fuel sold in this country,” said Acting Special Agent in Charge Martinez. “The criminal activity by these defendants has real consequences. The defendants manipulated and utilized federal governmental programs to line their pockets by fraud. These guilty pleas demonstrate EPA’s commitment, working closely with our partners at the Department of Justice, to pursue these criminal cases vigorously. Companies and their managers need to understand there are serious consequences to skirting the rules and undermining the integrity of an EPA program.”
“Today’s sentencings mark the successful end of an investigation that uncovered a complicated fraudulent scheme that generated millions of dollars through false biodiesel tax credits,” said Acting Special Agent in Charge Stemen. “We want everyone to take advantage of the deductions and credits to which they are entitled by law; however, no one is entitled to defraud the government."
“The Office of Inspector General is committed to investigating and seeking prosecution of those who choose to endanger the public by illegally transporting, distributing, or disposing of hazardous materials,” said Regional Special Agent in Charge Smith. “Today’s sentencing should send a clear warning that these fraudulent actions and illegal hazmat violations will not be tolerated.”
Each of the defendants pleaded guilty to conspiracy to commit wire fraud and to defraud the United States. Dean Daniels also pleaded guilty to offering a hazardous material for transport without providing or affixing proper placards.
Assistant Attorney General Cruden and U.S. Attorney Stewart commended the cooperative investigation by law enforcement, including the Houston Police Department, as well as Department of Justice Trial Attorney Adam Cullman and Assistant U.S. Attorney J. Michael Marous, who represented the United States in this case.
Former police officer indicted for selling firearms to felonsRead the Press Release
A former police officer was indicted for two counts of selling firearms to people he knew were felons, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Kevin R. Lumpkin, 29, of North Olmsted, is accused of selling a Hi-Point .45-caliber rifle and a Ruger .380-caliber pistol on different occassions to people he knew were convicted of felonies and therefore forbidden from possessing a firearm. These sales took place between 2011 and 2013, when Lumpkin was a North Randall police officer, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the FBI.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Plano, Texas, Resident Sentenced to 12 Years in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 37-year-old former resident of Plano, Texas, Wellman Anderson Reyes, was sentenced this morning by U.S. District Judge Barbara M.G. Lynn to 144 months in federal prison following his guilty plea in April 2015 to one count of attempted enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Lynn ordered that his sentence run consecutive to any sentence he may receive in an unrelated, pending online solicitation of a minor case currently pending in the 291st Judicial District in Dallas County. Reyes will be deported to El Salvador after serving his sentence.
The investigation began in 2013 when the Garland Police Department received a tip about an inappropriate text that was sent to a minor girl. The investigation revealed that Reyes had sent that text. To locate Reyes, a detective with the Garland Police Department, acting in an undercover capacity and assuming the persona of a 14-year-old female, sent a friend request to Reyes. Reyes accepted the request, and for two months conversation between the two ensued, with Reyes enticing her to engage in sex acts with him. Reyes sent sexually explicit photos of himself, and he requested the girl send him nude photos of herself. They agreed to meet at an apartment in Garland to engage in sex acts, but when Reyes arrived, he was taken into custody.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Garland Police Department, Plano Police Department and U.S. Secret Service investigated. Assistant U.S. Attorneys Camille Sparks and Lori Walker prosecuted.
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Former Parma housing official sentenced to prison for stealing $232,000Read the Press Release
A former employee at Parma Public Housing Agency was sentenced to more than a year in prison for stealing $232,000 from the agency, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Amy Belz, 34, of Brunswick, Ohio, was sentenced to 16 months in prison. She previously pleaded guilty to theft of government funds.
“This defendant lined her pockets with nearly a quarter of a million dollars that was meant to help poor people,” Dettelbach said. “Public employees who steal from taxpayers will be held accountable for their actions.”
Between 2008 and 2014, while Belz was program manager of the Parma Public Housing Agency, she stole $232,407.48 by writing 138 checks to herself, money which was provided to Parma from the U.S. Department of Housing and Urban Development. In order to conceal her theft of funds from Parma Public Housing Agency and HUD, Belz made the checks out to herself, but typed vendor names on the carbon copies in the Parma Public Housing Agency check registers. Belz then created false invoices from these legitimate Parma Public Housing Agency vendors, attached them to the false carbon copies, and placed them in the Parma Public Housing Agency files to make it appear that the vendor was paid for work, knowing that such was never actually ordered or completed, according to court documents.
The case is being prosecuted by Assistant United States Attorney Adam Hollingsworth after an investigation by the U.S. Department of Housing and Urban Development Office of the Inspector General and the Parma Police Department.
Former Financial Manager of Wayne-White Counties Electric Cooperative and Church Treasurer Receives 18 Months in PrisonRead the Press Release
Bruce L. Johnson, 50, of Wayne City, Illinois, the former Manager of Finance and Office Services for Wayne-White Counties Electric Cooperative and Treasurer of the Wayne City First Christian Church, was sentenced today in United States District Court in Benton to 18 months in prison for defrauding both organizations, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Johnson pled guilty in April to charges that between 2007 and 2013 he used his trusted positions with both organizations to steal over $350,000 in Cooperative and Church funds. Throughout that time period Johnson regularly used the United States mail to send unauthorized, and in many cases forged, checks drawn on the organizations’ respective bank accounts to his personal creditors and others.
In addition to the 18 month term of imprisonment, Johnson was ordered to pay $400 in special assessments to the United States and restitution as follows: 1) a total of $334,871.24 to Wayne-White Electrical Cooperative and its insurer, Federated Rural Electric Insurance Exchange; and 2) a total of $47,876.96 to the First Christian Church of Wayne City and its insurer, Erie Insurance Company. Johnson was also placed on a 3 year term of supervised release to follow his incarceration during which time he will be required to perform 250 hours of community service.
Johnson will remain on bond pending designation by the Federal Bureau of Prisons to the facility where he will begin serving his sentence.
The investigation was a cooperative effort by the Federal Bureau of Investigation, the Fairfield Police Department and the Wayne County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Former Chief of Staff to House GOP Minority Leader Sentenced to Prison for Profiting by Steering Campaign BusinessRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GEORGE GALLO, 47, of East Hampton, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for receiving more than $100,000 from a political campaign direct mail vendor to whom he steered business.
“While he was a well-paid state employee, this defendant took advantage of Connecticut’s public campaign financing system by steering business to campaign vendors with whom he had a business relationship and profited handsomely as a result,” stated U.S. Attorney Daly. “He further abused his position of trust as Chief of Staff to the Minority Leader of the Connecticut House of Representatives by lying and causing others to lie to candidates who were following his directions. This prison term should serve as a warning. Corrupt public employees will be prosecuted.”
According to court documents and statements made in court, GALLO was an employee of the State of Connecticut as the Chief of Staff to the Minority Leader of the Connecticut House of Representatives. As part of his responsibilities, GALLO was responsible for designing and overseeing the campaign program of the House Republican Campaign Committee (“HRCC”), a state-registered political action committee that provides material and strategic support to Republican candidates for the Connecticut House of Representatives.
In 2008, GALLO and others developed a HRCC campaign program in anticipation of the first general election cycle in which candidates seeking election to the Connecticut General Assembly or statewide office would receive public financing through the state’s Citizens’ Election Program (“CEP”). The purpose of the new program, in part, was to enable the HRCC to centrally coordinate CEP funded campaigns by providing Republican House candidates with access to comprehensive campaign related services, including direct mail services, voter information, polling, messaging advice and campaign management. GALLO selected the campaign service vendors that were permitted to participate in the HRCC program.
GALLO informed an employee of a Florida-based company that provided direct mail services to political campaigns of a new business opportunity in Connecticut. GALLO indicated to the employee that the CEP would lead to greater numbers of well-funded Republican House candidates in need of direct mail services, and that the Florida company could serve as a HRCC sponsored vendor with access to CEP funded Republican candidates. In exchange, the company would make payments to GALLO equal to 10 percent of the revenue that the company received from candidates participating in the HRCC program. GALLO indicated to the employee that such an arrangement would be “good for [the company] and good for George Gallo.” The employee agreed to GALLO’s proposal.
As part of the scheme, GALLO and the HRCC hosted “campaign schools” for House Republican candidates where HRCC sponsored vendors, including the Florida company, gave presentations marketing their services. GALLO and others arranged for candidates to meet individually with the Florida company to discuss in greater detail the company’s services, prices and a direct mail plan. These meetings occurred at several locations, including the State Capitol.
During the 2008 and 2012 election cycles, GALLO made false representations to the Minority Leader of the Connecticut House of Representatives that he did not have a financial relationship with or receive any compensation from any of the HRCC sponsored vendors. During the 2008, 2010 and 2012 election cycles, GALLO made additional false representations to others, knowing that his statements would be communicated to House Republican candidates participating in the HRCC campaign program, that he did not receive any compensation from any HRCC sponsored vendor.
From 2008 through 2012, the Florida company mailed checks made payable to the Vinco Group, a Cromwell based limited liability company in which GALLO was the sole member, totaling approximately $117,266.63.
GALLO also made multiple false statements to FBI special agents on October 1, 2013, when he was interviewed about his relationship with HRCC sponsored vendors. In the interview, GALLO denied that either he or the Vinco Group had a business relationship with any vendors utilized by HRCC, and he denied that he had received any income through the Vinco Group since becoming Chief of Staff to the Connecticut House Minority Leader.
Judge Bryant ordered GALLO to pay restitution in the amount of $117,266.63
On April 27, 2015, GALLO pleaded guilty to one count of mail fraud.
GALLO was ordered to report to prison on November 30, 2015.
This matter was investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with the assistance of the Connecticut Public Corruption Task Force and the State Election Enforcement Commission. The case was prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Florida Businessman Sentenced to 17 Years in Prison for Conspiring to Defraud InvestorsRead the Press Release
Dozens of Investors Lost More Than $13 Million in Scheme
A Florida businessman was sentenced today to 17 years in prison for his role in an investment fraud scheme resulting in over $13 million in losses to dozens of investors.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Special Agent in Charge Kimberly A. Lappin of the IRS-Criminal Investigation’s Tampa Field Office made the announcement.
Donovan G. Davis Jr., 34, of Palm Bay, Florida, was found guilty by a jury on May 14, 2015, of one count of conspiracy to commit mail/wire fraud, one count of mail fraud, six counts of wire fraud and eight counts of money laundering. He was sentenced by U.S. District Judge Carlos E. Mendoza of the Middle District of Florida, who ordered him to pay $10,520,005 in restitution jointly and severally with his co-defendants.
“Donovan Davis Jr. and his co-conspirators lied to persuade victims to invest their retirement savings and children’s college funds, and then concealed the investment fund’s extreme losses so that the victims would stay invested,” said Assistant Attorney General Caldwell. “The investors lost everything, while Davis and others running the scam looted the fund to pay their own six-figure salaries, purchase luxury cars and travel in private planes. This sentence will help hold Davis accountable for his crimes, but the investors he deceived will suffer for decades because of his greed and deceit.”
“Dozens of investors and their families lost millions of dollars because they put their trust in an investment firm that lied about its performance,” said Acting U.S. Attorney Cohen. “The deception of Donovan Davis Jr. and the others involved in this scheme caused great personal and financial harm to people, including many who lost their retirement savings. Today’s sentence reflects the seriousness of the defendant’s greedy, deceptive conduct and underscores our commitment to prosecuting those who commit financial crimes. I commend the prosecutors from here in D.C. who held these criminals accountable for their deception in a Florida courthouse.”
“Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors to unjustly enrich themselves,” said Special Agent in Charge Lappin. “IRS Criminal investigation and our law enforcement partners will relentlessly pursue those who mastermind and perpetrate investment fraud schemes.”
According to evidence presented at trial, Davis was the managing member of Capital Blu Management LLC, a Florida-based corporation that purported to offer investment and managed account services for investors in the off-exchange foreign currency, or “forex,” marketplace. In 2007 and 2008, Davis solicited relatives, friends and associates to invest in Capital Blu.
In or about September 2007, according to evidence presented at trial, Davis and his co-conspirators formed the CBM FX Fund LP, which pooled investors’ money into a common fund to be traded by Capital Blu Management. Many of Capital Blu’s managed-account investors transferred their investments into the CBM FX Fund.
According to the evidence presented at trial, CBM FX Fund had sustained significant trading losses, resulting in large losses for its investors. Nevertheless, the evidence demonstrated that Davis and his co-conspirators made a series of misrepresentations to the investors about Capital Blu’s trading performance, the value of the fund and the risks of the fund.
For example, according to the evidence presented at trial, the Davis and his co-conspirators informed CBM FX Fund’s investors of positive monthly returns from January through August of 2008, even though the fund and its investors had sustained net losses of millions of dollars. In addition, they diverted investors’ money from the fund to pay for Capital Blu’s operational expenses and personal expenses, including their own six-figure salaries and payments for the use of private airplanes and luxury cars.
In or about September 2008, the National Futures Association, an independent self-regulatory organization that oversees commodities and futures trading in the United States, conducted a surprise audit of Capital Blu and suspended its operations. As of September 2008, investors had invested over $16.9 million into the CBM FX Fund and lost over $13 million.
Co-defendant Blayne S. Davis (no relation to Donovan Davis Jr.), 34, formerly of Naples, Florida, pleaded guilty in July 2014 to conspiracy to commit mail and wire fraud, and was sentenced to nine years in prison and ordered to pay $13,215,874 in restitution. Co-defendant Damien L. Bromfield, 39, of Ocoee, Florida, pleaded guilty in November 2013 to conspiracy to commit wire fraud and is awaiting sentencing.
The case was investigated by a task force consisting of agents from the Internal Revenue Service-Criminal Investigation; U.S. Secret Service; Florida Department of Law Enforcement; and Brevard County, Florida, Sherriff’s Office. Attorneys, agents and accountants from the U.S. Commodity Futures Trading Commission (CFTC), National Futures Association, Bureau of Prisons and U.S. Immigration and Customs Enforcement also provided assistance to the investigation. A related civil litigation was pursued by the CFTC, which resulted in a civil judgment against the defendants after a trial in 2011.
The case was prosecuted by Trial Attorneys David M. Fuhr and Ephraim Wernick of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jonathan P. Hooks of the District of Columbia. Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler of the District of Columbia provided invaluable assistance on asset forfeiture matters.
Florida Businessman Sentenced to 17 Years in Prison for Conspiring to Defraud InvestorsRead the Press Release
WASHINGTON – A Florida businessman was sentenced today to 17 years in prison for his role in an investment fraud scheme resulting in over $13 million in losses to dozens of investors.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Special Agent in Charge Kimberly A. Lappin of the IRS-Criminal Investigation’s Tampa Field Office made the announcement.
Donovan G. Davis Jr., 34, of Palm Bay, Florida, was found guilty by a jury on May 14, 2015, of one count of conspiracy to commit mail/wire fraud, one count of mail fraud, six counts of wire fraud and eight counts of money laundering. He was sentenced by U.S. District Judge Carlos E. Mendoza of the Middle District of Florida, who ordered him to pay approximately $10,520,005 in restitution jointly and severally with his co-defendants.
“Donovan Davis Jr. and his co-conspirators lied to persuade victims to invest their retirement savings and children’s college funds, and then concealed the investment fund’s extreme losses so that the victims would stay invested,” said Assistant Attorney General Caldwell. “The investors lost everything, while Davis and others running the scam looted the fund to pay their own six-figure salaries, purchase luxury cars and travel in private planes. This sentence will help hold Davis accountable for his crimes, but the investors he deceived will suffer for decades because of his greed and deceit.”
“Dozens of investors and their families lost millions of dollars because they put their trust in an investment firm that lied about its performance,” said Acting U.S. Attorney Cohen. “The deception of Donovan Davis Jr. and the others involved in this scheme caused great personal and financial harm to people, including many who lost their retirement savings. Today’s sentence reflects the seriousness of the defendant’s greedy, deceptive conduct and underscores our commitment to prosecuting those who commit financial crimes. I commend the prosecutors from here in D.C. who held these criminals accountable for their deception in a Florida courthouse.”
“Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors to unjustly enrich themselves,” said Special Agent in Charge Lappin. “IRS Criminal investigation and our law enforcement partners will relentlessly pursue those who mastermind and perpetrate investment fraud schemes.”
According to evidence presented at trial, Davis was the managing member of Capital Blu Management LLC, a Florida-based corporation that purported to offer investment and managed account services for investors in the off-exchange foreign currency, or “forex,” marketplace. In 2007 and 2008, Davis solicited relatives, friends and associates to invest in Capital Blu.
In or about September 2007, according to evidence presented at trial, Davis and his co-conspirators formed the CBM FX Fund LP, which pooled investors’ money into a common fund to be traded by Capital Blu Management. Many of Capital Blu’s managed-account investors transferred their investments into the CBM FX Fund.
According to the evidence presented at trial, CBM FX Fund had sustained significant trading losses, resulting in large losses for its investors. Nevertheless, the evidence demonstrated that Davis and his co-conspirators made a series of misrepresentations to the investors about Capital Blu’s trading performance, the value of the fund and the risks of the fund.
For example, according to the evidence presented at trial, the Davis and his co-conspirators informed CBM FX Fund’s investors of positive monthly returns from January through August of 2008, even though the fund and its investors had sustained net losses of millions of dollars. In addition, they diverted investors’ money from the fund to pay for Capital Blu’s operational expenses and personal expenses, including their own six-figure salaries and payments for the use of private airplanes and luxury cars.
In or about September 2008, the National Futures Association, an independent self-regulatory organization that oversees commodities and futures trading in the United States, conducted a surprise audit of Capital Blu and suspended its operations. As of September 2008, investors had invested over $16.9 million into the CBM FX Fund and lost over $13 million.
Co-defendant Blayne S. Davis (no relation to Donovan Davis Jr.), 34, formerly of Naples, Florida, pleaded guilty in July 2014 to conspiracy to commit mail and wire fraud, and was sentenced to nine years in prison and ordered to pay $13,215,874 in restitution. Co-defendant Damien L. Bromfield, 39, of Ocoee, Florida, pleaded guilty in November 2013 to conspiracy to commit wire fraud and is awaiting sentencing.
This case was transferred from the Middle District of Florida to the U.S. Attorney’s Office for the District of Columbia and the Department of Justice, Criminal Division.
The case was investigated by a task force consisting of agents from the Internal Revenue Service-Criminal Investigation; U.S. Secret Service; Florida Department of Law Enforcement; and Brevard County, Florida, Sherriff’s Office. Attorneys, agents and accountants from the U.S. Commodity Futures Trading Commission (CFTC), National Futures Association, Bureau of Prisons and U.S. Immigration and Customs Enforcement also provided assistance to the investigation. A related civil litigation was pursued by the CFTC, which resulted in a civil judgment against the defendants after a trial in 2011.
The case was prosecuted by Trial Attorneys David M. Fuhr and Ephraim Wernick of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jonathan P. Hooks of the District of Columbia. Former Assistant U.S. Attorney Catherine K. Connelly and Assistant U.S. Attorney Anthony Saler of the District of Columbia provided invaluable assistance on asset forfeiture matters.
Five Men Plead Guilty to Bank Fraud and Identity Theft SchemeRead the Press Release
ALEXANDRIA, Va. – Five men have pleaded guilty to multiple felonies arising from a five-year conspiracy to defraud banks by manufacturing fraudulent checks using compromised account information and to deposit the checks into bank accounts under false identities.
The following men have pleaded guilty to felonies arising from this conspiracy: Ray Ekobena, 27, of Alexandria; Stefan Ekobena, 24, of Atlanta; Rodney Hardy, 25, of Hyattsville, Maryland; Alan Lamin, 25, of Washington, D.C.; and Jerome Johnson, 32, of Washington, D.C.
According to statements of fact filed with the plea agreements, Ray Ekobena and his younger brother, Stefan Ekobena, printed fraudulent checks using victims’ bank account information. The Ekobenas’ obtained this information by enlisting bank tellers and other insiders who had access to sensitive personal information through their employment. Co-conspirators such as Hardy, Lamin, and Johnson furthered the conspiracy by depositing the fraudulent checks into bank accounts under false names and withdrawing the resulting funds before the banks discovered the fraud. Ray Ekobena also obtained loans in the names of his identity theft victims to buy luxury vehicles, including a Mercedes-Benz, a Porsche, and an Audi. In total, the conspiracy victimized over 200 individuals, small businesses, and charities, including the Leukemia & Lymphoma Society and the Children’s National Medical Center.
The defendants were indicted by a federal grand jury on June 25, 2015. For the bank fraud conspiracy, they each face a maximum penalty of 30 years in prison when sentenced in November 2015. Ray and Stefan Ekobena will also receive a mandatory two-year sentence for their convictions for aggravated identity theft. 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; David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after the final plea was accepted by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Joseph V. Longobardo 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. 1:15-cr-180.
Felon Sentenced to Federal Prison for Impersonating an Armed Federal AgentRead the Press Release
ATLANTA - Daniel M. Harbison has been sentenced to one year, nine months in federal prison for impersonating an armed DEA agent, after having previously been convicted of a felony.
“The impersonation of a federal agent undercuts the validity of a genuine law enforcement officer’s mission to protect the public,” said U.S. Attorney John Horn. “Thankfully, Harbison made the mistake of pulling over a Doraville police officer who questioned Harbison’s authority and took quick action that resulted in Harbison being arrested that day, and today being sentenced for his crime.”
“Through the cooperation of multiple agencies, Dunwoody Police, FBI, DEA and The Department of Justice, Harbison will be getting the just sentence he deserves. He only serves as a reminder to the community that they should always be aware of what is going on around them. I am thankful that our officer was alert and took the appropriate steps to ensure this successful, peaceful conclusion,” said Chief John King, Doraville Police Department.
According to U.S. Attorney Horn, the charges, and other information presented in court: In the spring of 2015, Harbison began impersonating a Drug Enforcement Administration (“DEA”) agent. Specifically, on April 3, 2015, in Doraville, Georgia, Harbison conducted a traffic stop of a Chevrolet Suburban by engaging green and white flashing light-emitting diode (“LED”) lights. Unbeknownst to Harbison, the vehicle was being driven by an off-duty Corporal with the Doraville Police Department. During the unauthorized traffic stop, Harbison wore a T-shirt printed with the letters “DEA,” carried a .45 caliber handgun in a thigh holster, and possessed an identification card purportedly issued by the DEA. The Doraville Corporal also saw that Harbison possessed a realistic gold and blue badge engraved with the letters “US.”
The Corporal told Harbison that he was a Doraville Police Officer and asked Harbison why his LED lights were green and white (as opposed to the blue and white lights used by genuine police officers). In response to the question, Harbison replied that his LED lights were green and white because he was a federal agent. The Doraville Corporal then stated that other police officers were in route to check the validity of Harbison’s law enforcement credentials. At that point, Harbison returned to his car and fled from the scene.
Doraville and Dunwoody Police Officers then went to Harbison’s residence and arrested Harbison. From Harbison’s residence, police officers recovered several items, including: (a) a Springfield .45 caliber handgun, (b) a DEA T-shirt, (c) LED lights, (d) an identification card purportedly issued by the DEA, and (e) a gold and blue badge engraved with the letters “US.” Harbison has previously been convicted of at least two felonies, and as a result, could not legally possess the gun. Harbison had been impersonating a federal agent for several weeks before he was caught.
On April 23, 2015, a grand jury charged Harbison, 40, of Dunwoody, Georgia, with being a felon in possession of a firearm. Harbison pleaded guilty to that charge on June 9, 2015. He was sentenced to one year, nine months in federal prison and ordered to serve three years of supervised release and pay a special assessment of $100.
This case was investigated by the Federal Bureau of Investigation, Doraville Police Department, and Drug Enforcement Administration.
Assistant U.S. Attorney Jeffrey W. Davis and Special Assistant U.S. Attorney Erin E. Sanders prosecuted 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal law enforcement leaders collaborate in Detroit to combat regional heroin, painkiller traffickingRead the Press Release
WHEELING, WEST VIRGINIA – United States Attorney William Ihlenfeld, II, joined federal law enforcement leaders this week at a summit in Michigan to finalize plans for an initiative designed to enhance interstate collaboration in order to slow the southward flow of drugs from Detroit to the Appalachian Region.
Federal agents and prosecutors, led by Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, met on Wednesday to develop a strategic initiative designed to disrupt the flow of heroin and opioids from the Detroit region to West Virginia, Ohio, Pennsylvania, Kentucky and Tennessee. Under the initiative, law enforcement and prosecutors across the region will identify key transportation routes and concentrate resources to target the criminal organizations that use those routes, sometimes referred to as the “Southern Pipeline.” The goal of the initiative is to dismantle drug trafficking organizations by enhancing coordination, data gathering, targeting and information sharing.
“We need to take more of a data-driven approach to the investigating heroin and painkiller trafficking in West Virginia and elsewhere,” said U.S. Attorney Ihlenfeld. “The demand for illegal drugs does not stop at arbitrary borders between jurisdictions. As long as drug dealers can profit from this demand, they will continue to find creative ways to transport drugs cross state lines using intricate distribution networks. Collaboration among law enforcement agencies across the Midwest will allow us to more clearly understand and quickly respond to drug trafficking patterns.”
United States Attorneys from Michigan, Kentucky, Ohio, Pennsylvania, Tennessee, and West Virginia participated in the summit. The meeting was also attended by Directors of the Ohio, Appalachia, and Michigan High Intensity Drug Trafficking Areas, as well as Special Agents in Charge from the Drug Enforcement Administration, the Federal Bureau of Investigation, and Homeland Security Investigations.
Federal Jury Finds Junction City Man Was Not War Hero He Claimed to BeRead the Press Release
KANSAS CITY, KAN. –A federal jury Thursday returned a guilty verdict in the case of a Junction City man who stole his father’s identity to apply for a loan to buy a $490,000 house, U.S. Attorney Barry Grissom said.
Matthew Williams, 47, Junction City, Kan., was convicted on one count of bank fraud and one count of aggravated identity theft. During trial, prosecutors presented evidence that Williams filled out a loan application with Pulaski Bank using his father’s name, Social Security number and other identifying information in an attempt to get a loan to buy a house in Shawnee, Kan. The defendant was in bankruptcy proceedings at the time.
The government presented evidence that Williams claimed to be an Army veteran and recipient of a Purple Heart award for valor in Vietnam. In fact, Williams’s father, Earl, fought in both Vietnam and Desert Storm and earned a Purple Heart, as well as other commendations.
Sentencing will be set for a later date. He faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on the bank fraud charge, and a penalty of 2 years consecutive to any other sentence on the identity theft charge. Grissom commended the Veterans Administration – Office of Inspector Genera, Special Agent Tim Mugrage and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Federal Jury Finds Former Owner of Albuquerque Smoke Shop Guilty on Synthetic Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – This afternoon a federal jury sitting in Santa Fe, N.M., found Firas Abuzuhrieh, 38, of Albuquerque, N.M., guilty on federal synthetic drug trafficking charges after a four-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Abuzuhrieh, then the owner of the Ace Smoke Shop & Hookah Lounge (Smoke Shop) located on Juan Tabo Blvd. NE in Albuquerque, and his employee Islam Kandil, 40, were arrested on Sept. 23, 2014, and charged by criminal complaint with trafficking in synthetic cannabinoids, more commonly known as “spice.” The two men were subsequently charged in a three-count indictment with conspiracy to distribute “spice.” The indictment also charged each man with distributing spice.
According to the indictment, the two men conspired to sell “spice” in Bernalillo County from Aug. 14, 2014 to Aug. 18, 2014. It also alleged that Kandil sold “spice” to an undercover DEA agent at the Smoke Shop on Aug. 14, 2014, and that Abuzuhrieh sold “spice” to an undercover DEA agent at the Smoke Shop on Aug. 18, 2014.
The indictment was superseded in July 2015 to expand the time frame of the conspiracy to cover the period between Aug. 14, 2014 and Sept. 22, 2014. The superseding indictment also added three counts of possession of “spice” with intent to distribute against Abuzuhrieh.
Kandil pled guilty on Aug. 19, 2015, to a misdemeanor information charging him with simple possession of “spice,” and admitted possessing 2.3 grams of “spice” on Aug. 14, 2014.
Abuzuhrieh elected to proceed to trial on the five-count superseding indictment. The trial began on Aug. 24, 2015, and concluded this afternoon when the jury returned a verdict finding him guilty on all five counts. The evidence at trial established that Abuzuhrieh sold “spice” to an undercover DEA agent on Aug. 18, 2014. It also established that on Sept. 22, 2014, when DEA agents arrested Abuzuhrieh, he was in possession of a key that opened a suite located in the same complex as the Smoke Shop. When the agents searched the Smoke Shop and the suite, they found approximately 62 kilograms of “spice.”
Abuzuhrieh is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a statutory maximum penalty of 20 years in prison.
Under the terms of his plea agreement, Kandil will be sentenced to 360 days in prison followed by up to one year of supervised release. He remains in custody pending a sentencing hearing which is scheduled for Sept. 17, 2015.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorneys Jennifer M. Rozzoni and Shana B. Long.
The controlled substance analogues charged in the complaints and indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Federal Grand Jury Indicts Supervisory Customs and Border Protection Officer and Wife in Alleged Alien Smuggling ConspiracyRead the Press Release
In El Paso, a federal grand jury has charged a Supervisory U.S. Customs and Border Protection Officer, his wife and a third individual for their alleged roles in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
The seven-count indictment, returned on August 19 and unsealed yesterday, charges 53–year-old SCBPO Lawrence Madrid, his 38-year-old wife, Odet Madrid-Corchado, and Maria Guadalupe Jaime-Hernandez, a 45-year-old undocumented alien residing in Las Cruces, NM, with one count of conspiracy to commit alien smuggling for financial gain and one substantive count of alien smuggling for financial gain. Lawrence Madrid is also charged with two counts of accepting a bribe. Odet Madrid and Maria Jaime-Hernandez are also charged with one count of bribery of a public official.
The indictment alleges that from August 2010 to September 2011, the defendants conspired to encourage/induce undocumented aliens to come to, enter, and reside in the United States without proper authorization. As part of the conspiracy, Lawrence Madrid allegedly accepted money for using his official position to allow undocumented aliens to be smuggled through the ports of entry in El Paso. Odet Madrid and Maria Guadalupe Jaime-Hernandez allegedly aided and abetted in offering a sum of money to CBPO Madrid to allow an undocumented alien to enter the United States without proper authorization.
The indictment was unsealed following yesterday’s arrests and Initial Appearances for Madrid-Corchado and Jaime-Hernandez. Jaime-Hernandez remains in federal custody pending a detention hearing Monday morning. Madrid-Corchado was released on a $10,000 bond. Lawrence Madrid is currently on a $20,000 bond following his arrest on July 24, 2015, on a criminal complaint filed last month in this case.
Upon conviction, the defendants face not more than ten years imprisonment on the conspiracy charge, between three and ten years imprisonment for the substantive alien smuggling charge, and not more than 15 years imprisonment for each bribery charge.
This case was investigated by the Homeland Security Investigations (HSI) together with the Department of Homeland Security Office of Inspector General Investigations. Assistant United States Attorneys Greg McDonald and Robert Almonte are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Court Says Long Wharf Pavilion May Not Be Converted into a RestaurantRead the Press Release
BOSTON – A federal court in Boston has rejected efforts by the Boston Redevelopment Authority (BRA) to convert an open-air pavilion on the end of Long Wharf into a restaurant. Siding with the National Park Service (Park Service), the court held that the end of Long Wharf is protected by a federal law requiring the land to be used for public outdoor recreation.
The case concerned the federal Land and Water Conservation Fund (LWCF) program, which is administered by the National Park Service. Since Congress enacted the LWCF Act in 1965, the Park Service has awarded over 42,000 grants totaling over $3.7 billion. A LWCF-assisted park is located in over 98 percent of counties in the United States.
Under the LWCF program, a municipality, state, or county can apply for federal money to acquire or develop a piece of land, but, in exchange, it must agree to use all or part of that land for public outdoor recreation forever. The land subject to that perpetual restriction is called the “6(f) area.” The entity applying for an LWCF grant must enclose with its application a boundary map showing the 6(f) area, and the Park Service must agree on that boundary before it awards the grant. After the boundary is agreed upon, the grant recipient may not convert the 6(f) area into something other than public outdoor recreation use unless it offers, and the Park Service accepts, substitute property of at least equal fair market value and reasonably equivalent recreation usefulness and location.
In 1980 the BRA, which owns Long Wharf, applied for a LWCF grant to help develop Long Wharf, which was then a dilapidated pier. The Park Service awarded the grant in 1981, and the BRA used the money for construction work on the wharf. Long Wharf Pavilion was later built on the northern half of the seaward tip of Long Wharf. It is an open-sided structure made of granite, brick, copper, and slate. Construction ended in 1988.
Decades later, the BRA sought to convert the pavilion into a restaurant called Doc’s Long Wharf. BRA argued that such a conversion would be permissible because, it said, the pavilion was located outside the 6(f) boundary on Long Wharf. The Park Service disagreed based upon its decision in the documents in its grant file, including a 6(f) boundary map dated 1980, which the Park Service said the BRA had enclosed with its application. The BRA denied enclosing the 1980 map with its application and claimed it had never seen that map.
The BRA sued the Park Service, challenging the Park Service’s reliance on the 1980 map. The BRA argued that a different map, dated 1983, was the 6(f) boundary map for Long Wharf.
The federal court sided with the Park Service, finding that the BRA indeed had submitted the 1980 map with its application. Because Long Wharf Pavilion is within the 6(f) boundary on Long Wharf, the BRA may not convert the pavilion into a restaurant unless it offers, and the Park Service accepts, substitute property of at least equal fair market value and reasonably equivalent recreation usefulness and location.
United States Attorney Carmen Ortiz and Michael Caldwell, Regional Director of the National Park Service made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division.
Fayette County Public Schools and U.S. Attorney’s Office Partner on Anti-Bullying Education for High School StudentsRead the Press Release
As part of its ongoing commitment to ensuring a safe and welcoming learning environment for all students, Fayette County Public Schools partnered with community leaders, law enforcement officials and the U.S. Attorney’s Office to kick-off the 2015-16 school year with an anti-bullying summit for high school students.
“Our school campuses must be safe places for all students,” said Fayette County Public Schools Superintendent Manny Caulk. “There is no room for discrimination, bullying or hate in our school district.”
The goal of Thursday’s event was to raise awareness about the harmful impact of bullying and to promote tolerance in schools. The summit specifically focused on equipping students to know how to respond if they witness bullying or are a victim of bullying.
While Fayette County Public Schools has strong policies to protect students against harassmentand bullying, national statistics from the Centers for Disease Control and Prevention report that roughly 1 in every 5 high school students has experienced bullying.
Increased education and attention to the issue has had an impact in FCPS. In the past five years, while our enrollment has risen by more than 3,000 students, the number of reported incidents of bullying or harassment in Fayette County schools has been cut nearly in half – from 1,019 incidents in the 2010-11 school year to 533 last year.
Elyria man indicted for possessing images of child sex abuseRead the Press Release
A grand jury returned a two-count indictment charging Mario Lopez Lopez, 34, of Elyria, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing child pornography, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Cleveland Field Office, Elyria Resident Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Elyria man faces child pornography chargesRead the Press Release
Fredrick Alston Thomas, 35, of Elyria, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about December 4, 2014, through on or about February 1, 2015, Thomas knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On July 23, 2015, images of child pornography were also found on his smartphone, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Elyria Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Eldorado Man Sentenced to 14 Years in Prison for Possessing Methamphetamine and A Gun in Saline CountyRead the Press Release
Joseph Scott Robertson, 45, of Eldorado, Illinois, was sentenced on August 26, 2015, in United States District Court in Benton to 14 years in prison for possessing with intent to distribute four ounces of highly pure methamphetamine (commonly known as "crystal" or "ice") and for being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The offenses occurred on August 19, 2014, in Eldorado.
Evidence introduced in support of the guilty plea and sentence showed that in August 2014 Robertson took delivery of four ounces of methamphetamine that had been sent to him through a commercial carrier service, but was intercepted by law enforcement before its delivery. The delivery to Robertson was made by an undercover law enforcement agent. A subsequent search of the residence Robertson was living in revealed $18,845 in cash which Robertson admitted was obtained from the sale of methamphetamine, delivery receipts for numerous other shipments of methamphetamine he had previously received, and a .38 caliber revolver Robertson admitted he possessed to protect his drugs and cash. Robertson had previously been convicted of several felony offenses. Laboratory tests conducted by the United States Drug Enforcement Administration showed that the methamphetamine Robertson possessed was 100% pure.
In addition to the 14 year prison sentence, Robertson was ordered to pay fines and special assessments totaling $400 to the United States and was placed on a 4 year term of supervised release to follow his incarceration. Following his sentencing, Robertson was returned to the custody of the United States Marshal, where has been held without bond since his arrest on the federal charges in December, to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the DEA. The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Deported Guatemalan Charged with Illegal Re-entry into U.S., Failing to Register as a Sex OffenderRead the Press Release
PITTSBURGH - A citizen of Guatemala was indicted on August 25, 2015, by a federal grand jury in Pittsburgh on charges of Illegal Re-Entry after Deportation and Failing to Register as a Sex Offender, United States Attorney David J. Hickton announced today.
The two-count indictment named Edward Jacinto Garcia, 30, of Guatemala, as the sole defendant.
According to the indictment, on July 6, 2015, Jacinto Garcia, an alien who, on October 6, 2011, had been deported and removed from the United States, and having unlawfully reentered the United States, was found in Butler County, Pennsylvania. The indictment also charges Jacinto Garcia with traveling in interstate commerce and failing to register as a sex offender, as required by the Sex Offender Registration and Notification Act. Jacinto Garcia’s registration requirement stems from a 2009 conviction for the crime of Sexual Assault of a Minor, 1st degree, in Platte County, Nebraska.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement, and the United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Davenport Woman Sentenced on Charge of Making False Statements in Purchase of FirearmsRead the Press Release
DAVENPORT, IA – On August 26, 2015, Jenifer Tran, age 41, was sentenced by United States District Court Chief Judge John A. Jarvey to time-served and three years of supervised release, with six months of home confinement, on a charge of making false statements during the purchase of firearms, announced United States Attorney Nicholas A. Klinefeldt. Tran was also ordered to pay $100 towards the Crime Victims Fund.
On August 14, 2014, the Davenport Police responded to a 911 call at the residence of Charles Bryan Ewert in Davenport, Iowa, in reference to a domestic disturbance. The caller related she had been physically and emotionally abused by Ewert, he had threatened to kill her, and he had multiple firearms at the residence. Davenport Police surrounded the residence and attempted to make contact with Ewert. He was uncooperative and the situation was handled as a barricaded suspect who was possibly armed. Ewert was observed by officers entering and leaving the garage during the stand-off. After about an hour, Ewert was arrested.
A search warrant was obtained for the residence and a search was conducted. Eight firearms were recovered in the garage along with a large amount of ammunition for various types and calibers of firearms including a Springfield Armory M1A, 7.62 caliber rifle, a Ruger P95, 9mm semiautomatic pistol, and a Remington 870, 12 gauge shotgun. These firearms were traced to Tran, and it was determined that the firearms were purchased by Tran for Ewert, at Ewert’s request.
When purchasing the firearms on December 11, 2011, Tran completed a federal firearm transaction form required by law. In so doing, Tran falsely answered "yes" to the question: "Are you the actual transferee/buyer of the firearms(s) listed on this form? Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual buyer, the dealer cannot transfer the firearm(s) to you.", when in fact Tran purchased the firearms for Charles Bryan Ewert.
This case was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced for Possession of FirearmsRead the Press Release
DAVENPORT, IA – On August 26, 2015, Charles Bryan Ewert, age 36, was sentenced by United States District Court Chief Judge John A. Jarvey to 84 months in prison for being a felon in possession of eight firearms and for making false statements during the purchase of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Ewert was also ordered to serve three years supervised release following the imprisonment and to pay $200 towards the Crime Victims Fund. Ewert agreed to forfeit his interest in the firearms and ammunition he illegally possessed.
On August 14, 2014, the Davenport Police responded to a 911 call at the residence of Charles Bryan Ewer in Davenport, Iowa, in reference to a domestic disturbance. The caller related she had been physically and emotionally abused by Ewert, he had threatened to kill her, and he had multiple firearms at the residence. Davenport Police surrounded the residence and attempted to make contact with Ewert. He was uncooperative and the situation was handled as a barricaded suspect who was possibly armed. Ewert was observed by officers entering and leaving the garage during the stand-off. After about an hour, Ewert was arrested. A search warrant was obtained for the residence, and a search was conducted. Eight firearms were recovered in the garage along with a large amount of ammunition for various types and calibers of firearms. The firearms include: (1) a Bushmaster Carbon 15 (AR15) .223 caliber semiautomatic rifle, (2) a Springfield 87A, .22 caliber rifle, (3) a Glock Model 22 .40 caliber semiautomatic pistol, (4) a Springfield Armory M1A, 7.62 caliber rifle, (5) a Winchester 50, 12 gauge shotgun, (6) a Winchester 12, 12 gauge shotgun, (7) a Ruger P95, 9mm semiautomatic pistol, and (8) a Remington 870, 12 gauge shotgun. Ewert was convicted in 2002 of felony eluding, a crime punishable by imprisonment for a term exceeding one year.
The Glock pistol was traced to a federal firearms licensee, who produced copies of a gun permit, driver’s license, and Form 4473 for a person with the name of a Davenport businessman. The police interviewed the Davenport businessman, who said he provided a copy of his driver’s license and copy of his gun permit to Ewert as they were jointly purchasing the firearm. He said it was Ewert who purchased the firearm using these copies. The businessman sold the Bushmaster Carbon 15 to Ewert in a separate transaction. The police re-interviewed the federal firearms licensee, who admitted that he sold the Glock pistol to Ewert after being provided the identification documents in the name of the businessman.
This case was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Clinton County Man Charged with Child Pornography OffensesRead the Press Release
Miguel Angel Vasquez Torres, 34, from Beckemeyer, Illinois, was charged in federal court by a two-count criminal complaint with distribution and receipt of child pornography, United States Attorney Stephen R. Wigginton announced today. After a detention hearing held today, Vasquez Torres was held without bond pending trial.
The offenses charged in the complaint allege that on May 4, 2015, Vasquez Torres received and distributed multiple video files containing child pornography. A trial date has not yet been set.
If convicted of distribution and/or receipt of child pornography, Vasquez Torres faces a term in federal prison of not less than five years, up to twenty years, a fine up to $250,000, and a term of supervised release of not less than five years up to life on each count.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, and the Clinton County Sheriff’s Department. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Cleveland man sentenced to more than 15 years in prison for armed robberiesRead the Press Release
A Cleveland man was sentenced to more than 15 years in prison for multiple armed robberies of Family Dollar and Dollar General stores in Northeast Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Quentin Blade, 31, was sentenced to 190 months in prison. He previously pleaded guilty to multiple counts of conspiring to interfere with commerce by means of robbery, interference with commerce by means of robbery and brandishing a firearm during and in relation to a crime of violence.
Nicholas Daniel, 24, of Cleveland, also pleaded guilty to several counts related to his role in the conspiracy. Daniel is scheduled to be sentenced next month.
Between August 6, 2014, and September 24, 2014, Blade and Daniel conspired to rob numerous retail stores in Cleveland and East Cleveland. These stores include the Dollar General at 13741 Euclid Ave., Dollar General at 5133 Superior Ave., Dollar General at 2966 E. 116 Street, Dollar General at 2272 E. 55 Street (twice), Family Dollar at 1250 E. 105 Street and Dollar General at 9111 Miles Ave, according to court documents.
Blade and Daniel carried and brandished firearms during the incidents, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, the Cleveland Division of Police, and the East Cleveland Police Department and with the assistance of the Cuyahoga County Prosecutor’s Office.
Charlotte Area Club Owner and Promoter Sentenced for Filing A False Tax Return and Money LaunderingRead the Press Release
CHARLOTTE, N.C. –U.S. District Judge Robert J. Conrad, Jr., sentenced a Charlotte area club owner and entertainment promoter on tax fraud and money laundering charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Adolph R. Shiver, 52, of Charlotte, was sentenced to nine months in prison followed by three years of supervised release, during which he will serve an additional nine months of home confinement. Shiver was also ordered to pay $28,635 as restitution to the Internal Revenue Service, and a $25,000 fine. Additionally, Judge Conrad ordered Shiver to perform 50 hours of community service. Finally, Shiver must close his nightclub, Club 935, and must not own or manage another nightclub for the duration of his sentence.
Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CID), join Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Shiver is the owner and operator of two Charlotte-based party promotion businesses, “L.A. Inc.” and “Adof Entertainment Group,” and the owner and operator of Club 935, also located in Charlotte. Court records indicate that in or about December 2013, Shiver knowingly conducted a financial transaction involving $50,000, represented to be the proceeds of unlawful activity. According to court records, Shiver planned to launder those illegal proceeds through his businesses. In addition to engaging in money laundering, in or about October 2013, Shiver filed a false tax return for tax year 2012, which understated his taxable income. According to court records, Shiver omitted from his personal and corporate tax returns gross receipts totaling $102,270, with a corresponding tax loss of $28,635.
Shiver pleaded guilty in December 2014 to one count of filing a false tax return for tax year 2012 and one count of money laundering. At today’s sentencing hearing, Shiver was ordered to report to the Federal Bureau of Prisons upon designation of federal facility. All federal sentences are served without the possibility of parole.
This prosecution is part of “Operation Jailhouse Productions,” an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The case was investigated by DEA and IRS-CID. Assistant U.S. Attorney Steven R. Kaufman coordinated on the investigation and handled the prosecution in this case.
Charleston heroin dealer pleads guilty to federal chargeRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Michael Ealm, 36, of Charleston, pleaded guilty today in federal court in Charleston to distribution of heroin. On three occasions in January, February, and March of 2015, Ealm sold heroin to an individual working as a confidential informant for the Metropolitan Drug Enforcement Network Team (MDENT). On March 4, 2015, MDENT officers executed a search warrant at Ealm’s residence in Charleston. When the officers entered the residence, Ealm was trying to flush some of the heroin down the toilet. Officers recovered additional heroin from the residence, and Ealm gave a statement admitting that he had been selling heroin in the Charleston area since January of 2015.
Ealm faces up to 20 years in federal prison when he is sentenced on December 7, 2015. United States District Judge John T. Copenhaver, Jr. is presiding over the case. MDENT conducted the investigation. Assistant United States Attorney Haley Bunn is responsible for the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Chambersburg Man Sentenced to 30 Months Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney=s Office for the Middle District of Pennsylvania announced today that U.S. District Court Chief Judge Christopher C. Conner sentenced Jerome Knight, age 35, of Chambersburg, Pennsylvania today to 30 months imprisonment in federal court in Harrisburg. Knight pleaded guilty on March 26, 2015 to distribution and possession with intent to distribute a controlled substance.
According to United States Attorney Peter Smith, Knight obtained cocaine in New York and distributed it in Chambersburg and in Maryland. When he was arrested by the Pennsylvania State Police, bags containing more than 200 grams of powder cocaine were seized from his vehicle.
This case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Meredith A. Taylor.
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California Man Sentenced for Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Darmarvis Marquel Lee, 30, of San Bernardino, Calif., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 27 months in prison followed by two years of supervised release for his heroin trafficking conviction.
Lee was arrested on Aug. 22, 2014, at the Amtrak Train Station in Albuquerque after a consensual search of his baggage by DEA agents revealed that he was in possession of 2.28 kilograms of heroin. Lee subsequently was indicted on Sept. 9, 2014, and charged with possession of heroin with intent to distribute.
On May 5, 2015, Lee pled guilty to the indictment. In his plea agreement, Lee admitted that on Aug. 22, 2014, while he was on an Amtrak train and during a stop in Albuquerque, law enforcement officers found two wrapped bundles containing heroin in his baggage. He also admitted that he was paid $4,000.00 to transport and deliver the drugs.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Rumaldo Armijo prosecuted the case.
This case was prosecuted as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
CEO of Kentwood Pharmacy, Kim Duron Mulder, Sentenced to Ten Years in Prison for Health Care FraudRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr. announced that Kim Duron Mulder, 56, formerly of East Grand Rapids, was sentenced today to ten years in prison. Mulder, the CEO of Kentwood Pharmacy, pled guilty to a conspiracy to commit health care fraud based on billing Medicare Part D Plans, Medicaid, and private insurance plans for misbranded and adulterated drugs. At a sentencing hearing in Grand Rapids, Chief U.S. District Judge Robert Jonker also ordered that Mulder serve three years of supervised release following his prison term
Following the execution of federal search warrants on November 2, 2010 and the execution of an Immediate Suspension Order by the DEA, Kentwood Pharmacy ceased operations. As a result of the subsequent investigation, a total of 18 employees at Kentwood Pharmacy were convicted of criminal offenses stemming from the practices at Kentwood Pharmacy, including the felony convictions of six licensed pharmacists. The sentences for these defendants included 14 years in prison for Richard Clarke, formerly Kentwood Pharmacy’s Vice President of Sales, for his involvement in the health care fraud conspiracy and a separate charge of possession of child pornography. Judge Jonker also sentenced chief pharmacist Lawrence Harden to six years’ imprisonment for his role in the conspiracy.
The process by which Kentwood Pharmacy returned drugs to pharmacy stock resulted in the cross-contamination of drugs, improper labeling of drugs, the placement of different drug dosages into stock bottles, and the placement of the altogether wrong drugs into stock bottles. These practices also allowed Vice President Richard Clarke to remove returned controlled substances from the pharmacy, including Vicodin and OxyContin, and sell the drugs on the street in northern Michigan.
Judge Jonker found that public and private insurers paid more $79,000,000.00 for adulterated and misbranded drugs that were sent to patients at more than 800 nursing and adult foster care homes serviced by Kentwood Pharmacy from 2006 to 2010. Based on the licensing of Kentwood Pharmacy in the name of Mr. Mulder’s wife, who had nothing to do with running the pharmacy, Judge Jonker found that the business was "conceived in fraud" and, given Mulder’s felony convictions, "should never have received a [pharmacy] license." Judge Jonker commented that Mulder "created a culture of chaos" that "created real dangers associated" with cross-contamination and generally taking controlled substances out of the traceable regulatory schemes. Judge Jonker concluded that "this was fraud, pure and simple, from the top" and "perpetrated by a person with a history of fraud."
U.S. Attorney Patrick Miles said, "The public must be able to rely on those who own and run pharmacies to operate in compliance with the federal and state laws regulating the handling, packaging, and distribution of drugs. When health care providers violate regulations meant to protect the public and then bill public and private health care insurers for such drugs, my office will pursue serious charges, including health care fraud."
"A key element of FDA’s mission to protect the public’s health is to ensure that safe and effective prescription drugs are properly distributed and accounted for via the supply chain and dispensed to the ultimate consumer. The sentence imposed today reflects the seriousness of the harm that could have been inflicted on innocent victims by the defendant’s criminal acts," said Special Agent in Charge John J. Redmond of the FDA’s Office of Criminal Investigations, Chicago Field Office. "We will continue to pursue and bring to justice those who would put the public’s health at risk by compromising the prescription drug supply chain."
"This sentence reflects the seriousness of the crimes committed by Mr. Mulder and should serve as a significant deterrence to those who may be contemplating the execution of similar healthcare fraud schemes", said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. "The OIG will continue to work diligently with our law enforcement partners to root out those who would put the public’s health and safety at risk through the commission of healthcare fraud and ensure that they are held accountable."
The investigation of this matter involved the FDA, HHS-OIG, FBI, DEA, IRS, the Michigan Attorney General’s Office and the Michigan State Police. Assistant U.S. Attorneys Ray Beckering and Adam Townshend prosecuted the case on behalf of the United States.
The investigation of this case was initiated by confidential tips. If Michigan residents or medical professionals suspect possible violations of law or other dangerous practices involving pharmacies or prescription drugs, they can contact the FDA at http://www.fda.gov/ICECI/criminalInvestigations/default.htm. To report health care fraud generally, persons can contact 1-800-HHS-TIPS.
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Buffalo Man Arrested for Retrieving Cocaine Mailed from Puerto Rico in A Lego BoxRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Alexis Javier Centeno-Baez, 21, of Buffalo, NY, was arrested and charged by criminal complaint with conspiracy and attempt to possess with intent to distribute 500 grams or more of cocaine. Each count carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the complaint, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Buffalo. A search warrant was executed and revealed two individually wrapped kilograms of cocaine stuffed inside a LEGO box. During a controlled delivery, Centeno-Baez went to the address and retrieved the package. When Drug Enforcement Administration Agents approached to arrest him, the defendant left the package in his car and fled on foot. Agents pursued Centeno-Baez and apprehended him about three blocks away.
The defendant made an initial appearance today before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being held pending a detention hearing on September 2, 2015 at 10:00 a.m.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Brunswick Man Sentenced to over One Year on Tax ChargesRead the Press Release
Contact: Karen E. Kelly
Assistant Chief, U.S. Department of Justice, Tax Division
James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II and Acting Assistant Attorney General of the U.S. Department of Justice, Tax Division, Caroline D. Ciraolo, announced that F. William Messier, 71, of Brunswick, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to one year and a day in prison and three years of supervised release for conspiracy to defraud the U.S. by impeding and impairing the Internal Revenue Services (IRS) and corruptly endeavoring to impede the lawful administration of the tax laws. He was also fined $15,000 and ordered to file tax returns and to pay income taxes going back to 2005, which was estimated by the government to be $168,376, not including interest and penalties. The defendant and co-conspirator David E. Robinson were convicted on April 3, 2015, after a five-day jury trial.
According to trial testimony, Messier, doing business as Oak Hill Communications, earned income generated on leases from telecommunication towers located on his Brunswick property. From 1999 through 2014, Messier engaged in conduct intended to obstruct the enforcement of the Revenue laws, including providing false tax documents to customers, obstructing IRS collection activities and the extensive use of cash. In 2012, the IRS assessed taxes and interest against Messier totaling $172,094 for the tax years 2000 to 2004. Robinson claimed to be the “Interim Attorney General” of the “Maine Republic Free State” and advocated that people not pay federal and state taxes. According to the testimony of witnesses, after the IRS sent Notices of Levy to Messier’s customers, Robinson and Messier took a number of steps to obstruct and impede the IRS in the collection of the assessment, including presenting the IRS with a fake and worthless money order for the amount due by Messier. According to witness testimony, Messier and Robinson urged customers not to honor the levies or to pay the IRS, and further urged customers to pay Messier in cash to conceal their payments from the IRS, sent false documents to the IRS and sent threatening and misleading correspondence to customers of Messier’s business urging them not to cooperate with the IRS. The two also filed civil lawsuits against some of Messier’s customers and employees of the IRS, which were dismissed in separate proceedings.
In imposing the sentence, Judge Hornby said that the notion that people do not have to pay federal taxes unless they live in the District of Columbia or a federal territory or are federal employees “is a fantasy.” People who believe this notion need to understand that their conduct is wrong and deserves a prison sentence and a fine.
The case was investigated by IRS Criminal Investigation. Assistant United States Attorney James W. Chapman, and Karen E. Kelly, Assistant Chief at the Tax Division prosecuted the case.Brevard County Man Pleads Guilty to Producing PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Daniel Lester Jackson (34, Brevard County) has pleaded guilty to two counts of producing child pornography. He faces a mandatory minimum sentence of 15 years, up to 30 years, in federal prison on each count. His sentencing hearing is scheduled for November 16, 2015.
According to the plea agreement, on June 17, 2015, officers from the Palm Bay Police Department executed a search warrant at Jackson’s residence. Forensic analyses of the electronic media revealed images and videos depicting child pornography. Subsequent investigation determined that on at least two separate occasions Jackson had used his cellphone to record explicit images of a 6-year-old girl.
This case was investigated by the Federal Bureau of Investigation and the Palm Bay Police Department. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Arizona Man Indicted for Providing Material Support to Isil by Facilitating New York Man’s Travel to Syria to Receive Terrorist TrainingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that AHMED MOHAMMED EL GAMMAL, a/k/a “Jammie Gammal,” was indicted today for providing, and conspiring to provide, material support to the Islamic State of Iraq and the Levant (“ISIL”), a designated foreign terrorist organization, as well as for aiding and abetting the receipt of military-type training from ISIL and conspiring to receive such training. EL GAMMAL was arrested on Monday in Avondale, Arizona, and presented in federal court in the District of Arizona, pursuant to a criminal complaint that was unsealed yesterday in Manhattan federal court. The case is assigned to Judge Edgardo Ramos of United States District Court for the Southern District of New York.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ahmed Mohammed el Gammal actively touted online his support for ISIL and its terrorist ways, ultimately meeting and assisting a New York college student to travel to Syria to obtain military training from ISIL. Individuals like Gammal who allegedly serve as facilitators for ISIL fuel the hatred and radicalization that keep terrorist organizations like ISIL alive.”
Assistant Attorney General John P. Carlin said: “Ahmed Mohammed El Gammal is charged with conspiring to provide and providing material support to ISIL. The National Security Division’s highest priority is counterterrorism, and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
FBI Assistant Director in Charge Diego Rodriguez said: “As alleged, Gammal helped a college student in New York receive terrorist training in Syria through a contact in Turkey, in order to support ISIL. These relationships were allegedly made and solidified through the internet while Gammal was in Arizona. This is another example of how social media is utilized for nefarious and criminal purposes around the world. The identification of the conspiracy, and arrest today, demonstrate how federal and local law enforcement continue to work together to mitigate such threats globally and protect the United States.”
NYPD Commissioner William Bratton said: “This investigation demonstrates how easily people can support a terrorist organization without ever meeting, from the anonymity of their own computer and hidden behind obscure social media accounts and the veil of the internet. I commend the detectives and agents on the Manhattan based Joint Terrorism Task Force and the prosecutors of the U.S. Attorney’s Office for the Southern District for their unwavering commitment to keeping our city safe.”
As alleged in the criminal Complaint unsealed yesterday and the Indictment filed today in Manhattan federal court[1]:
In August 2014, a 24-year-old New York City resident (“CC-1”) who was growing increasingly radicalized learned via social media that EL GAMMAL had posted social media comments supportive of ISIL. Minutes later, CC-1 contacted EL GAMMAL. Over the next several months, CC-1 and EL GAMMAL continued corresponding over the Internet, although CC-1 deleted many of these exchanges.
In the midst of these communications, in October 2014, EL GAMMAL traveled to Manhattan, where CC-1 was enrolled in college, and contacted and met with CC-1. While in New York City, EL GAMMAL also contacted another co-conspirator (“CC-2”), who lived in Turkey, about CC-1’s plans to travel to the Middle East. EL GAMMAL later provided CC-1 with social media contact information for CC-2. Thereafter, EL GAMMAL and CC-2 had multiple social media exchanges about CC-1 traveling to the Middle East. In addition, CC-1 began communicating with CC-2, introducing himself as a friend of “Gammal’s.”
In late January 2015, CC-1 abruptly left New York City for Istanbul, Turkey. After CC-1 arrived in Turkey, EL GAMMAL continued to communicate with him over the Internet, providing advice on traveling toward Syria and on meeting with CC-2. After CC-1 arrived in Syria, he received military-type training from ISIL between early February and at least early May 2015.
On May 7, 2015, CC-1 reported to EL GAMMAL that “everything [was] going according to plan.”
* * *
EL GAMMAL, 42, of Avondale, Arizona, is charged with one count of providing material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison; one count of receiving military-type training from a designated foreign terrorist organization, which carries a mandatory sentence of 10 years in prison; and one count of conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the NYPD. Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the U.S. Attorney’s Office for the District of Arizona, and the Phoenix Field Office of the FBI for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Brendan F. Quigley, Negar Tekeei, and Andrea L. Surratt are in charge of the prosecution, with assistance from Trial Attorney Ranganath Manthripragada of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the Indictment and the descriptions of the Complaint and the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Arizona Man Charged with Providing Material Support to ISILRead the Press Release
Ahmed Mohammed El Gammal, aka Jammie Gammal, 42, of Avondale, Arizona, was indicted today for providing and conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, as well as for aiding and abetting the receipt of military-type training from ISIL and conspiring to receive such training.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) made the announcement.
“Ahmed Mohammed El Gammal is charged with conspiring to provide and providing material support to ISIL,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism, and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“As alleged, Ahmed Mohammed el Gammal actively touted online his support for ISIL and its terrorist ways, ultimately meeting and assisting a New York college student to travel to Syria to obtain military training from ISIL,” said U.S. Attorney Bharara. “Individuals like Gammal who allegedly serve as facilitators for ISIL fuel the hatred and radicalization that keep terrorist organizations like ISIL alive.”
“As alleged, Gammal helped a college student in New York receive terrorist training in Syria through a contact in Turkey, in order to support ISIL,” said Assistant Director in Charge Rodriguez. “These relationships were allegedly made and solidified through the internet while Gammal was in Arizona. This is another example of how social media is utilized for nefarious and criminal purposes around the world. The identification of the conspiracy, and arrest today, demonstrate how federal and local law enforcement continue to work together to mitigate such threats globally and protect the United States.”
“This investigation demonstrates how easily people can support a terrorist organization without ever meeting, from the anonymity of their own computer and hidden behind obscure social media accounts and the veil of the internet,” said Commissioner Bratton. “I commend the detectives and agents on the Manhattan based Joint Terrorism Task Force and the prosecutors of the U.S. Attorney’s Office for the Southern District for their unwavering commitment to keeping our city safe.”
As alleged in the indictment returned today and the complaint unsealed yesterday in the Southern District of New York:
In August 2014, a 24-year-old New York City resident (CC-1) learned via social media that El Gammal had posted social media comments that supported ISIL. Minutes later, CC-1 contacted El Gammal. Over the next several months, CC-1 and El Gammal continued corresponding over the Internet, although CC-1 deleted many of these exchanges.
In the midst of these communications, in October 2014, El Gammal traveled to Manhattan, New York, where CC-1 was enrolled in college, and contacted and met with CC-1. While in New York City, El Gammal also contacted another co-conspirator (CC-2), who lived in Turkey, about CC-1’s plans to travel to the Middle East. El Gammal later provided CC-1 with social media contact information for CC-2. Thereafter, El Gammal and CC-2 had multiple social media exchanges about CC-1 traveling to the Middle East. In addition, CC-1 began communicating with CC-2, introducing himself as a friend of “Gammal’s.”
In late January 2015, CC-1 abruptly left New York City for Istanbul. After CC-1 arrived in Turkey, El Gammal continued to communicate with him over the Internet, providing advice on traveling toward Syria and on meeting with CC-2. After CC-1 arrived in Syria, he received military-type training from ISIL between early February and at least early May 2015.
On May 7, 2015, CC-1 reported to El Gammal that “everything [was] going according to plan.”
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El Gammal is charged with one count of providing material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison; one count of receiving military-type training from a designated foreign terrorist organization, which carries a mandatory sentence of 10 years in prison; and one count of conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence, if any, will be determined by a judge.
El Gammal was arrested on Aug. 24, 2015, in Avondale, and presented in federal court in the District of Arizona, pursuant to a criminal complaint. The case is assigned to U.S. District Judge Edgardo Ramos of the Southern District of New York.
Assistant Attorney General Carlin joins U.S Attorney Bharara in praising the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force. The FBI’s Phoenix Field Office also provided valuable assistance.
The case is being prosecuted by Assistant U.S. Attorneys Brendan F. Quigley, Negar Tekeei and Andrea L. Surratt of the Southern District of New York, with assistance from Trial Attorney Ranganath Manthripragada of the National Security Division’s Counterterrorism Section. The U.S. Attorney’s Office of the District of Arizona also provided significant assistance.
The charges contained in the indictment and the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
El Gammal Indictment
Albuquerque Man Sentenced to Prison for Federal Armed Bank Robbery and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Jeremy Gabriel Trujillo, 35, of Albuquerque, N.M. was sentenced today in federal court to 130 months in prison followed by five years of supervised release for his conviction on armed bank robbery and firearms charges. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Trujillo was arrested on July 28, 2014, on a criminal complaint charging him with robbing the Bank of Albuquerque branch on Wyoming Blvd. NE in Albuquerque, N.M. The criminal complaint alleged that Trujillo robbed the bank at gunpoint that day. On Aug. 26, 2014, Trujillo was indicted and charged with being a felon in possession of a firearm and ammunition; armed bank robbery; and brandishing a firearm during a crime of violence. Court records reflect that in July 2014, Trujillo was prohibited from possessing firearms or ammunition because he previously had been convicted of at least two felony offenses.
On Dec. 11, 2014, Trujillo entered guilty pleas to Counts 2 and 3 of the indictment charging him with armed bank robbery and brandishing a firearm during a crime of violence. Trujillo admitted entering the Bank of Albuquerque branch and brandished a firearm in the direction of three bank tellers while demanding that they give him cash. After the bank tellers complied with his demands, Trujillo left the bank.
During today’s sentencing hearing, Trujillo was ordered to pay restitution to the Bank of Albuquerque. Trujillo also was ordered to pay restitution to two other Albuquerque-area banks which were robbed at gunpoint in April 2014 and May 2014.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney David M. Walsh prosecuted the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Abilene Man Sentenced to 102 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — Charles Coci, 26, of Abilene, Texas, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 102 months in federal prison, following his guilty plea in April 2015 to one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
After sentencing, Judge Solis remanded Coci, who had been on bond, into the custody of the U.S. Marshal.
According to documents filed in the case, Coci used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Coci located, downloaded and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and the U.S. Air Force Office of Special Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
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26 August 2015
West Seneca Man Pleads Guilty to Oxycodone DistributionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Fred Suchan, 33, of West Seneca, NY, pleaded guilty to distribution of oxycodone, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on three dates in September and October 2010, the defendant sold or attempted to sell OxyContin and Opana tablets to an undercover police officer in a commercial parking lot on Abbott Road in Orchard Park. On the last occasion, officers seized a 9 mm rifle, a loaded 9 mm magazine, and additional 9 mm ammunition from Suchan’s vehicle.
The plea is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the Orchard Park Police Department, under the direction of Chief Mark Pacholec.
Sentencing is scheduled for December 10, 2015, at 12:30 p.m. before Judge Arcara.
Virginia Man Sentenced to Two Years in Prison for Multi-State Scheme to Obtain Driver’s Licenses for Illegal AliensRead the Press Release
NEWARK, N.J. - An Alexandria, Virginia, man was sentenced today to 24 months in prison for his role in a multi-state scheme to unlawfully obtain driver’s licenses for illegal aliens, U.S. Attorney Paul J. Fishman announced.
Ho-Man Lee, 43, previously pleaded guilty before U.S. Magistrate Judge James B. Clark III to Count One of a superseding indictment charging him with conspiring to unlawfully produce identification documents. U.S. District Judge Kevin McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:Young-Kyu Park, 59, also known as “Oscar,” a former resident of Fort Lee, New Jersey, and later a resident of Los Angeles, was the leader of a criminal enterprise that operated in New Jersey, California, Nevada and Virginia (the “Park Criminal Enterprise”). The Park Criminal Enterprise provided a range of illicit services to individuals who were residing illegally in the United States, including obtaining driver’s licenses. In furtherance of the scheme, Park maintained a network of brokers in various states who helped illegal residents obtain driver’s licenses. Lee was Park’s Virginia broker.
The Park Criminal Enterprise illegally obtained driver’s licenses genuinely issued by New Jersey, New York, Virginia, Nevada, and elsewhere. To do so, it obtained, created and counterfeited a variety of documents and sold them to customers. Conspirators also escorted customers to various state motor vehicle agencies and coached them on obtaining licenses. Customers typically paid the Park Criminal Enterprise $3,000 to $4,500 for the unlawful services.
Park fraudulently obtained and sold genuine I-797 forms used by the federal government B including the U.S. Citizenship and Immigration Services (“USCIS”), a division of the Department of Homeland Security B to communicate with others or convey an immigration benefit. State agencies that issue driver’s licenses rely on the forms to verify the authenticity of an applicant’s foreign passport and to verify the applicant’s lawful presence in the United States.
Park obtained blank I-797 forms from Martin Trejo, 48, of Rialto, California, a former USCIS employee who stole batches of the forms. After obtaining the stolen forms, Park and other conspirators used a computer to print a customer’s information on the form. The Park Criminal Enterprise also altered and counterfeited other immigration documents, including passports, and created and provided fictitious documents to customers B such as fictitious utility bills and bank statements used to establish residency requirements.
Lee worked in northern New Jersey as Park’s Virginia broker. In exchange for cash, Lee met with customers, provided them with the fraudulent documents, including the fraudulent I-797 forms, and then escorted them to Virginia Department of Motor Vehicle offices to obtain licenses. Afterwards, Lee deposited the funds into bank accounts controlled by Park and kept a portion for his services.
In addition to the prison term, Judge McNulty sentenced Lee to three years of supervised release.
Park was sentenced to 72 months in prison on Jan. 8, 2015. Trejo was sentenced to 26 months in prison on Sept. 17, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly; the Department of Homeland Security, Office of Inspector General, Special Agent in Charge Gregory K. Null of the Philadelphia field office; and U.S. Citizenship and Immigration Services, under the direction of New Jersey District Director John E. Thompson, with the investigation leading to today’s sentencing.
U.S. Attorney Fishman noted the work of the N.J. Motor Vehicle Commission, under the direction of Chief Administrator Raymond P. Martinez; the Bergen County Prosecutor=s Office, under the direction of Prosecutor John L. Molinelli; and the N.J. State Police, under the direction of Colonel Joseph R. Fuentes, for their assistance.
He also thanked the FBI field offices in Los Angeles, Las Vegas, New York, Atlanta, and Richmond, Va., as well as U.S. Attorney's Offices for the District of Nevada and the Central District of California for their support.
The government is represented by Assistant U.S. Attorneys Anthony Moscato and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.Defense counsel: Paul Brickfield Esq., River Edge, New Jersey, and Joseph Horn Esq., Ridgefield Park, New Jersey
- Unsealed Indictment of Main Suspect in Khobar Towers Bombing, Ahmed Al-Mughassil, et al
Union County Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – A Union County man was sentenced today in U.S. District Court to 25 years in federal prison for producing child pornography, announced Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. Chad Landon Blume, 34, of Waxhaw, N.C., was also ordered to serve a lifetime of supervised release and to register as a sex offender. The sentence was imposed by U.S. District Judge Robert J. Conrad, Jr. of the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Union County Sheriff Eddie Cathey join Acting U.S. Attorney Rose in making today’s announcement.
According both to admissions made in connection with Blume’s guilty plea and to information introduced at sentencing, law enforcement recovered an SD Card that contained visual depictions of a minor engaging in sexually explicit conduct. Court records indicate that law enforcement determined the SD Card came from Blume’s cellular phone, which he had used to produce the child pornography on or about November 2012. During a subsequent search of Blume’s residence, agents seized Blume’s computer and other devices. A forensic analysis of those devices revealed that Blume had produced numerous sexually explicit pictures of a female minor under the age of 10. After Blume’s arrest, a second minor female came forward and disclosed that she had been molested by Blume. Blume pleaded guilty to one count of production of child pornography in December 2013.
Blume has been in federal custody since April 2013. Upon designation of a federal facility, he will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The FBI’s Crimes Against Children Squad investigated the case, assisted by the Union County Sheriff’s Office. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorneys and Federal Law Enforcement Leaders Conduct Summit to Target Heroin and Opioid Trafficking and Overdose EpidemicRead the Press Release
United States Attorneys and leaders of federal law enforcement agencies from across six states met in Detroit on August 26, 2015, to share strategies to combat the heroin and prescription pill epidemic across the region. The effort was announced jointly by United States Attorneys Barbara L. McQuade (Eastern District of Michigan), Kerry Harvey (Eastern District of Kentucky), Patrick A. Miles, Jr. (Western District of Michigan), Steven Dettelbach (Northern District of Ohio), Carter Stewart (Southern District of Ohio), John Kuhn, Jr. (Western District of Kentucky), David J. Hickton (Western District of Pennsylvania), William C. Killian (Eastern District of Tennessee), David Rivera (Middle District of Tennessee), Edward L. Stanton (Western District of Tennessee), William Ihlenfeld, II (Northern District of West Virginia), and R. Booth Goodwin, II (Southern District of West Virginia), Directors of High Intensity Drug Trafficking Areas (“HIDTA”) Abraham Azzam (Michigan), Derek Siegle (Ohio) and Frank Rapier (Appalachia), Drug Enforcement Administration (“DEA”) Special Agents in Charge Joseph P. Reagan (Detroit Division), Karl Colder (Washington, D.C., Division), Gary Tuggle (Philadelphia Division) and Daniel Salter (Atlanta Division), Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation (“FBI”), Detroit Field Office, Special Agent in Charge Marlon Miller, Homeland Security Investigations (“HSI”) in Detroit and Special Agent in Charge Howard Marshall, Federal Bureau of Investigation for Kentucky. Hickton co-chairs the national Heroin Task Force. The summit was called in response to the national epidemic of heroin and prescription pill abuse that has hit Michigan, Ohio, Kentucky, Tennessee, Pennsylvania and West Virginia, particularly hard. Heroin overdose deaths in the United States have tripled from 2010 to 2013. Nationally, the number of deaths from all drug overdoses exceeded 43,000 last year, more deaths than from traffic accidents. Heroin use in the United States has doubled from 2007 to 2012. In the Midwest, opioid deaths have increased 62 percent. Just since January 1, more than 60 people have died by overdose of heroin and fentanyl in Wayne and Washtenaw counties alone. The number of heroin overdose deaths in Oakland County doubled from 2013 to 2014. The summit seeks to target this national and regional problem by dismantling drug trafficking organizations that distribute heroin and prescription pills and by increasing prevention and educational efforts. One of the purposes of the summit is to discuss a regional strategic initiative as part of the federal Organized Crime Drug Enforcement Task Force program. Under this initiative, law enforcement and prosecutors across the region will investigate and prosecute the movement of heroin and prescription pills from Michigan and Ohio into Kentucky, Tennessee, West Virginia and western Pennsylvania. This effort includes action by the U.S. Attorneys’ Offices, DEA, FBI, HSI, the Bureau of Alcohol Tobacco, Firearms and Explosives (“ATF”) and the Internal Revenue Service Criminal Investigations (“IRS-CI”). As part of the initiative, the three HIDTA programs in the region (Michigan, Ohio, and Appalachia) will work with their federal, state and local partners to increase enforcement of heroin and pill trafficking and to target drug distribution that results in overdoses and deaths. The initiative also includes a commitment by each United States Attorney to engage in district-wide anti-heroin and prescription pill programs. For example, in the Eastern District of Michigan, United States Attorney Barbara McQuade has enacted Project HOPE (Heroin, Opioid Prevention and Enforcement). Project HOPE includes the targeting of drug traffickers whose distribution results in the death or overdose of the purchasers of the drugs. Project HOPE also dedicates more resources towards prosecuting heroin and pill traffickers generally. The initiative includes educational and outreach efforts to educate the public about the dangers of heroin and prescription pill abuse. United States Attorney McQuade said, “The epidemic of overdose deaths from heroin and prescription pill abuse is startling and needs to be met with an intense response by law enforcement. This summit is intended to strengthen and better coordinate our efforts to disrupt heroin and pill trafficking across the region. We also seek to raise public awareness about addiction, treatment and prevention.” Joseph Reagan, Special Agent in Charge, Drug Enforcement Administration, Detroit Division, which is responsible for Michigan, Ohio, and Kentucky, said, “The DEA welcomes this opportunity to examine best practices with our law enforcement partners and coordinate enforcement efforts. Equally important to DEA is working to increase the level of public awareness regarding the dangers of prescription drug abuse, not the least of which is the very realistic path to heroin use.”U.S. Attorneys and Federal Law Enforcement Leaders Conduct Summit to Target Heroin and Opioid Trafficking and Overdose EpidemicRead the Press Release
DETROIT – U.S. Attorneys and leaders of federal law enforcement agencies from across six states met in Detroit on August 26, 2015, to share strategies to combat the heroin and prescription pill epidemic across the region.
The effort was announced jointly by U.S. Attorneys Barbara L. McQuade, Eastern District of Michigan, Kerry Harvey, Eastern District of Kentucky, Patrick A. Miles, Jr.; Western District of Michigan, Steven Dettelbach, Northern District of Ohio, Carter Stewart, Southern District of Ohio, John Kuhn, Jr., Western District of Kentucky, David J. Hickton, Western District of Pennsylvania, William C. Killian, Eastern District of Tennessee, David Rivera, Middle District of Tennessee, Edward Stanton, Western District of Tennessee, William Ihlenfeld, II, Northern District of West Virginia, and R. Booth Goodwin, II, Southern District of West Virginia; Directors of High Intensity Drug Trafficking Areas (HIDTA) Abraham Azzam, Michigan, Derek Siegle, Ohio, and Frank Rapier, Appalachia; Drug Enforcement Administration (DEA) Special Agents in Charge Joseph P. Reagan, Detroit Division, Karl Colder, Washington, D.C. Division, Gary Tuggle, Philadelphia Division, and Daniel Salter, Atlanta Division; Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation (FBI), Detroit Field Office; and Special Agent in Charge Marlon Miller, Homeland Security Investigations (HSI), Detroit. U.S. Attorney Hickton also co-chairs the national Heroin Task Force.
The summit was called in response to the national epidemic of heroin and prescription pill abuse that has hit Michigan, Ohio, Kentucky, Tennessee, Pennsylvania and West Virginia, particularly hard. Heroin overdose deaths in the United States have tripled from 2010 to 2013. Nationally, the number of deaths from all drug overdoses exceeded 43,000 last year, more deaths than from traffic accidents. Heroin use in the United States has doubled from 2007 to 2012.
In the Midwest, opioid deaths have increased 62 percent. The summit seeks to target this national and regional problem by dismantling drug trafficking organizations that distribute heroin and prescription pills and by increasing prevention and educational efforts.
One of the purposes of the summit is to discuss a regional strategic initiative as part of the federal Organized Crime Drug Enforcement Task Force (OCDETF) program. Under this initiative, law enforcement and prosecutors across the region will investigate and prosecute the movement of heroin and prescription pills from Michigan and Ohio into Kentucky, Tennessee, West Virginia and western Pennsylvania. This effort includes action by the U.S. Attorneys’ Offices, DEA, FBI, HSI, the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF) and the Internal Revenue Service Criminal Investigations (IRS-CI). As part of the initiative, the three HIDTA programs in the region, Michigan, Ohio, and Appalachia, will work with their federal, state and local partners to increase enforcement of heroin and pill trafficking and to target drug distribution that results in overdoses and deaths.
The initiative also includes a commitment by each U.S. Attorney to engage in district-wide anti-heroin and prescription pill programs.
U.S. Attorney Killian said, “Tennessee has one of the highest rates of prescription drug abuse in the country. However, like many other states, we are now seeing a rise in heroin use as the prescription drugs are becoming more expensive and difficult to obtain. This summit was convened to help find ways to strengthen the coordinated efforts of local, state and federal law enforcement in their fight against these growing addictions and the resulting rise in overdose deaths.”
Daniel Salter, Special Agent in Charge, DEA, Atlanta Division, said, “The abuse of prescription pills, heroin, and fentanyl, an opioid 30 to 50 times more potent than heroin, has become a problem of epidemic proportions across the United States. This epidemic affects people of all backgrounds with no respect to race, gender, age, or socio-economic class. DEA and our federal, state and local law enforcement partners are committed to attacking the drug trafficking organizations that distribute these poisons in our communities without regard to the deadly consequences of their actions.”
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U.S. Attorney's Office Sponsors Fresh Start Reentry Resource FairRead the Press Release
TULSA, Okla.—The United States Attorney’s Office hosted a Fresh Start Reentry Program Resource Fair today for individuals with felony convictions to help connect them with community resource agencies and employment opportunities. Participating vendors provided information related to housing, employment, food, clothing, counseling and legal services offered in Tulsa County.
“The Fresh Start Reentry Resource Fair offered individuals with felony convictions valuable resources to help them find success in the community,” said U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. “One of the barriers to reentry is the difficulty in finding employment. A steady source of income provides stability and decreases the risk of recidivism. Today, through the collaboration with our reentry partners and local businesses, the participants took a step forward toward a “Fresh Start” in the community.”
The Resource Fair was a partnership with the United States Probation Office; Tulsa County District Attorney’s Office; the Oklahoma Department of Corrections; and the Oklahoma Department of Career and Technology Education.
In October 2013, the United States Attorney’s Office launched the Fresh Start Reentry Program. Fresh Start is dedicated to reducing criminal recidivism in the Northern District, including Tulsa, by helping individuals with felony convictions gain access to resources, and also to provide them with the necessary motivation for success when reintegrating into the community. Fresh Start is a result of the Department of Justice’s Smart on Crime Initiative.
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Two St. Thomas Residents Plead Guilty to Drug Trafficking ConspiracyRead the Press Release
St. Thomas, USVI – Hugo Ogando, 37, and Mario De Los Santos, 39, pleaded guilty in District Court on St. Thomas to conspiracy to possess cocaine with the intent to distribute, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for December 18, 2015.
According to the plea agreement filed with the court, on April 21, and 22, 2015, Ogando and De Los Santos agreed to sell 4.5 kilograms of cocaine. Members of the U.S. Drug Enforcement Administration (DEA) arrested them when they attempted the sale. The drug trafficking conspiracy charge to which they pleaded guilty carries a sentence of not less than five years and up to a maximum of 40 years in prison and a fine of $5 million.
This case is the result of an investigation by the DEA and it is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.