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26 August 2015
Two Ohio-Based Tax Return Preparation Business Executives Indicted for Nationwide Conspiracy and Other Tax-Related CrimesRead the Press Release
Two Ohio residents were arrested today after being indicted on Aug. 25 by a federal grand jury sitting in Dayton, Ohio, for conspiracy and tax-related crimes, announced Acting Deputy Assistant Attorney General Bruce M. Salad of the Justice Department’s Tax Division.
According to the 23-count indictment, Fesum Ogbazion, of Beavercreek, Ohio, and Kyle Wade, formerly of West Chester, Ohio, were indicted on one count of impeding the administration of the Internal Revenue Code, one count of conspiracy to commit wire fraud and five counts of wire fraud. Ogbazion is also charged with six counts of money laundering, one count of evasion of payment of employment taxes, eight counts of failure to collect and pay over employment taxes and one count of bank fraud.
According to the allegations in the indictment, Ogbazion owned and controlled ITS Financial LLC, which was the national franchisor of Instant Tax Service (ITS), a tax preparation business Ogbazion founded that claimed to have more than 1,100 franchise locations throughout the United States in 2009. Wade was the vice president of financing for ITS and owned multiple ITS franchises.
From about January 2004 through November 2012, Ogbazion and Wade executed a scheme to obstruct the Internal Revenue Service (IRS), wherein numerous ITS franchises filed false federal income tax returns without valid Forms W-2 and without the permission of their taxpayer clients. The false returns included false and inflated sole proprietorship Schedule C income in an attempt to increase the Earned Income Tax Credit. Over the course of several years, Ogbazion also instructed an ITS employee to electronically file large volumes of unsigned tax returns on the first day of the “tax filing season,” then falsely backdated customer filing authorizations. In an attempt to obstruct IRS civil compliance audits, ITS maintained and filed false documents with the IRS, including fabricated Forms W-2 created by ITS employees using tax preparation software, and forged client signatures on various false IRS forms.
From about December 2009 through November 2012, Ogbazion and Wade also conspired to generate loan and tax return preparation fees for ITS and its franchises by luring low-income and unsophisticated taxpayers into ITS franchises through a nationwide advertising campaign that offered customers tax refund anticipation loans. Despite the fact that ITS did not have an independent lender that could fund the promised loans, ITS collected loan application and tax preparation fees from its customers. For the 2011 tax filing season, Ogbazion and Wade represented to ITS staff, franchises and customers that refund anticipation loans were obtained through an independent lender, even though Ogbazion owned the purported lender, which had limited lending capabilities. Ogbazion knew that the overwhelming majority of loan applications would be denied. In total, the indictment alleges that ITS generated more than $12.5 million in fees in 2010, and more than $3.1 million in fees in 2011 from this loan scheme.
The indictment also alleges that Ogbazion was responsible for ITS’ and TaxMate LLC’s federal employment payroll taxes. He failed to pay over approximately $1.26 million in payroll taxes due from these businesses during four tax quarters in 2009 and 2010. Ogbazion also evaded the IRS’ attempts to collect ITS and TaxMate federal payroll taxes by directing business revenue to nominee accounts, placing assets in the names of nominee entities and making false statements to an IRS revenue officer during the course of collection activity, among other acts of concealment.
If convicted of impeding the administration of the Internal Revenue Code, the defendants face a statutory maximum sentence of three years in prison and a fine of up to $250,000. If convicted of conspiracy to commit wire fraud and wire fraud, the defendants face a statutory maximum sentence of 30 years in prison and a fine of up to $1 million for each count. If Ogbazion is convicted of money laundering, he faces a statutory maximum sentence of 20 years in prison and a fine of up to $500,000. If convicted of tax evasion and failure to pay over employment taxes, Ogbazion faces a statutory maximum sentence of five years in prison and up to a $250,000 fine for each count. Finally, Ogbazion faces a statutory maximum sentence of 30 years in prison and up to a $1 million fine if he is convicted of bank fraud.
The Tax Division commended the special agents of IRS-Criminal Investigation, who investigated the case, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark S. McDonald of the Tax Division and Assistant U.S. Attorney Jessica Knight of the Southern District of Ohio, who are prosecuting the case.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two Ohio-Based Tax Return Preparation Business Executives Indicted for Nationwide Conspiracy and Other Tax-Related CrimesRead the Press Release
WASHINGTON – Two Ohio residents were arrested today after being indicted on Aug. 25, by a federal grand jury sitting in Dayton, Ohio, for conspiracy and tax-related crimes, announced Acting Deputy Assistant Attorney General Bruce M. Salad of the Justice Department’s Tax Division.
According to the 23-count indictment, Fesum Ogbazion, of Beavercreek, Ohio, and Kyle Wade, formerly of West Chester, Ohio, were indicted on one count of impeding the administration of the Internal Revenue Code, one count of conspiracy to commit wire fraud and five counts of wire fraud. Ogbazion is also charged with six counts of money laundering, one count of evasion of payment of employment taxes, eight counts of failure to collect and pay over employment taxes and one count of bank fraud.
According to the allegations in the indictment, Ogbazion owned and controlled ITS Financial LLC, which was the national franchisor of Instant Tax Service (ITS), a tax preparation business Ogbazion founded that claimed to have more than 1,100 franchise locations throughout the United States in 2009. Wade was the vice president of financing for ITS and owned multiple ITS franchises.
From about January 2004 through November 2012, Ogbazion and Wade executed a scheme to obstruct the Internal Revenue Service (IRS), wherein numerous ITS franchises filed false federal income tax returns without valid Forms W-2 and without the permission of their taxpayer clients. The false returns included false and inflated sole proprietorship Schedule C income in an attempt to increase the Earned Income Tax Credit. Over the course of several years, Ogbazion also instructed an ITS employee to electronically file large volumes of unsigned tax returns on the first day of the “tax filing season,” then falsely backdated customer filing authorizations. In an attempt to obstruct IRS civil compliance audits, ITS maintained and filed false documents with the IRS, including fabricated Forms W-2 created by ITS employees using tax preparation software, and forged client signatures on various false IRS forms.
From about December 2009 through November 2012, Ogbazion and Wade also conspired to generate loan and tax return preparation fees for ITS and its franchises by luring low-income and unsophisticated taxpayers into ITS franchises through a nationwide advertising campaign that offered customers tax refund anticipation loans. Despite the fact that ITS did not have an independent lender that could fund the promised loans, ITS collected loan application and tax preparation fees from its customers. For the 2011 tax filing season, Ogbazion and Wade represented to ITS staff, franchises and customers that refund anticipation loans were obtained through an independent lender, even though Ogbazion owned the purported lender, which had limited lending capabilities. Ogbazion knew that the overwhelming majority of loan applications would be denied. In total, the indictment alleges that ITS generated more than $12.5 million in fees in 2010, and more than $3.1 million in fees in 2011 from this loan scheme.
The indictment also alleges that Ogbazion was responsible for ITS’ and TaxMate LLC’s federal employment payroll taxes. He failed to pay over approximately $1.26 million in payroll taxes due from these businesses during four tax quarters in 2009 and 2010. Ogbazion also evaded the IRS’ attempts to collect ITS and TaxMate federal payroll taxes by directing business revenue to nominee accounts, placing assets in the names of nominee entities and making false statements to an IRS revenue officer during the course of collection activity, among other acts of concealment.
If convicted of impeding the administration of the Internal Revenue Code, the defendants face a statutory maximum sentence of three years in prison and a fine of up to $250,000. If convicted of conspiracy to commit wire fraud and wire fraud, the defendants face a statutory maximum sentence of 30 years in prison and a fine of up to $1 million for each count. If Ogbazion is convicted of money laundering, he faces a statutory maximum sentence of 20 years in prison and a fine of up to $500,000. If convicted of tax evasion and failure to pay over employment taxes, Ogbazion faces a statutory maximum sentence of five years in prison and up to a $250,000 fine for each count. Finally, Ogbazion faces a statutory maximum sentence of 30 years in prison and up to a $1 million fine if he is convicted of bank fraud.
The Tax Division commended the special agents of IRS – Criminal Investigation, who investigated the case, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark S. McDonald of the Tax Division and Assistant U.S. Attorney Jessica Knight of the Southern District of Ohio, who are prosecuting the case.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two Charged with Sex Trafficking MinorsRead the Press Release
PITTSBURGH - Two residents of Allegheny County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit sex trafficking, sex trafficking of a child, and conspiracy to distribute and possess with intent to distribute heroin, United States Attorney David J. Hickton announced today.
The 11-count indictment, returned on August 11 and unsealed today, named Robert Allen Middlebrook, 40, of Clairton, Pennsylvania, and Kiari Nicole Day, 26, of Rankin, Pennsylvania, as the defendants.
According to the indictment, in February 2015, Middlebrook and Day knowingly entered into an agreement to conspire to recruit for sex trafficking four female minors who had not attained the age of 18 years. Also, in February 2015, Middlebrook and Day knowingly recruited, enticed, harbored, transported, provided and obtained four female minors, Minors A, B, C, D, to engage in commercial sex acts. The indictment further charges that in February 2015 Middlebrook conspired with others to distribute and possess with intent to distribute a quantity of heroin.
For Middlebrook, the law provides for a maximum total sentence of life imprisonment, a fine of $2,750,000, and a term of supervised release for any term of years not less than 5, and up to life, or any or all. For Day, the law provides for a sentence of not less than 10 years, nor more than life, a fine of $1,250,000, and a term of supervised release for any term of years not less than five, and up to life, or any or all. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Jessica Lieber Smolar and Katherine A. King are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tulsa Man Pleads Guilty to Possession of A Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CHELBI GEORGE, age 42, of Tulsa, Oklahoma, pled guilty to POSSESSION OF A COUNTERFEIT OBLIGATION, in violation of Title 18, United States Code, Section 472.
The charge arose from an investigation by the Muskogee Police Department and the United States Secret Service.
The Indictment alleges that on or about May 5, 2015, in the Eastern District of Oklahoma, the defendant, CHELBI GEORGE, did with intent to defraud, possess counterfeit obligations of the United States.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 20 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Melody Nelson represented the United States.
Truck Driver Sentenced to Federal Prison for Agreeing to Transport Women for ProstitutionRead the Press Release
In Waco today, 28-year-old Anthony Wayne Farrior of Paducah, KY, was sentenced to 51 months in federal prison for agreeing to transport women for prostitution announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Farrior pay a $1,000 fine and be placed on supervised release for a period of three years after completing his prison term.
On July 2, 2015, Farrior pleaded guilty to one count of violating the Mann Act. By pleading guilty, Farrior admitted to using the Internet and a cell phone in March 2015 to facilitate the promotion or execution of a prostitution scheme. According to court records, in February 2015, while seeking to have sexual relations with women at a truck stop in Waco, Farrior answered an advertisement placed by an undercover officer. During subsequent communications with the undercover officer, Farrior noted that he was a truck driver who traveled all over the country. Ultimately, Farrior agreed to transport and oversee women working as prostitutes at various truck stops in exchange for a portion of the money they earned for sex acts. Authorities arrested Farrior upon his arrival at a truck stop in Waco on March 6, 2015, where he previously had agreed to have sex with prostitutes and oversee them working at the truck stop for the evening.
This case was investigated by the McLennan County Sheriff’s Office. Assistant United States Attorney Mary Kucera prosecuted this case on behalf of the Government
Three Carroll County Men Plead Guilty to Role in Theft of 55 Firearms from Kings River New & Used GunsRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Timothy Brown, age 51, of Eureka Springs, Arkansas, Taz G. Bibey, age 19, of Eureka Springs, Arkansas, and Andrew T. Davis, age 26, of Eureka Springs, Arkansas, each entered a guilty plea to one count of Aiding and Abetting the Theft of Firearms from a Federal Firearms Licensee. The Honorable Chief Judge P.K. Holmes, III presided over the change of plea hearings in the United States District Court in Fort Smith.
These cases were investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Eureka Springs Police Department, the Branson, Missouri Police Department, and the Arkansas State Police. Assistant United States Attorney David Harris prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Texas Man Sentenced to 70 Months for Role in International Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Texas man has been sentenced by Chief United States District Court Judge Ralph R. Beistline to serve 70 months in prison for his role in a conspiracy to launder drug money out of the United States and into Mexico.
Jose Ramon Canales, 37, of El Paso, Texas, previously pled guilty to conspiring with others to launder the proceeds of drug trafficking internationally. As part of his plea, Canales admitted that he received nearly $100,000 in drug money, which he then worked with co-conspirators to secretly transport out of the country. Upon being released from prison, Canales will be on supervised release for two years.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, Canales was involved in longstanding conspiracies to distribute heroin and methamphetamine to Anchorage, Alaska based drug dealers and then transport the profits from those drug sales out of the United States to co-conspirators operating in Mexico. Canales joined the conspiracy by at least October 2013, when he received $70,000 in drug money from an Alaska co-conspirator. Canales then worked with Mexican co-conspirators to ship three kilograms of heroin from El Paso, Texas to Alaska for distribution.
Several months later, in March 2014, Canales received an additional $28,000 in cash sent as payment for the purchase of one kilogram of heroin. Canales later drove the funds, which he knew were the proceeds of drug trafficking, over the border into Mexico.
During the sentencing hearing, Judge Beistline described Canales’ role in the conspiracy as “integral,” noting that Canales chose to become part of a team of drug traffickers whose goals are adverse to everything Americans hold dear. In announcing the sentence, Judge Beistline also focused on the need to deter others from committing similar crimes, the need to punish people involved in criminal activity, and the need to encourage respect for societal norms.
Canales’s sentencing is one of the first related to a string of indictments returned in late 2014 and early 2015 as part of ongoing efforts to dismantle and prosecute several large scale drug trafficking rings with ties to Alaska, California, Texas, Arizona, and Mexico. An Anchorage drug distributor, Daniel Harris, was sentenced in July 2015 to serve 135 months in prison for related drug, guns, and money laundering crimes. Several other defendants are set to be sentenced in the coming months for their roles in trafficking heroin, cocaine, and methamphetamine to Alaska and then transporting the cash proceeds of their trafficking activities back to Mexico.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). In announcing the sentence, Ms. Loeffler praised the work of the law enforcement agencies involved, including the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Anchorage Police Department (APD), the Alaska State Troopers (AST), and the Anchorage Airport Police Department. Additional assistance was provided by the U.S. Attorney’s Offices for the Western District of Texas, the Eastern and Central Districts of California, and the District of Arizona, as well as federal agents in all three states.
St. Thomas Man Charged in District Court with Bulk Cash SmugglingRead the Press Release
St. Thomas, USVI – Kevin Greaves, 43, made his initial appearance on August 26, 2015, before U.S. Magistrate Judge Ruth Miller after being charged in a Complaint with bulk cash smuggling, United States Attorney Ronald W. Sharpe announced. Greaves was placed on home confinement pending further proceedings in this matter.
According to the Complaint filed on August 25, 2015, Greaves was found in possession of $118,000 in cash on August 22, 2015. The Complaint alleges that Greaves had picked up the cash from a vessel that had traveled from the British Virgin Islands to Haulover Bay on the east end of St. John. Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations (HSI) agents took Greaves into custody and seized the cash which had been stuffed into two duffle bags
Under federal law if convicted of bulk cash smuggling, Greaves faces a maximum sentence of five years in prison and forfeiture of the cash seized. This case is the result of a joint investigation by HSI and the Royal Virgin Islands Police Force. It is being prosecuted by Assistant United States Attorney Delia Smith.
United States Attorney Sharpe reminds the public that a Complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
St. Croix Man Charged in District Court with Marijuana SmugglingRead the Press Release
St. Thomas, USVI – Alva Nicholas, 56, made his initial appearance on August 23, 2015, before U.S. Magistrate Judge Ruth Miller after being charged in a Complaint with possession of 3.4 kilograms of marijuana with intent to distribute, United States Attorney Ronald W. Sharpe announced. Nicholas has been detained pending further proceedings in this matter.
According to the Complaint filed on August 23, 2015, Nicholas was arrested by Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations (HSI) agents at the Cyril E. King Airport in St. Thomas after his arrival on August 21, 2015. Agents were screening bags arriving at the airport when they detected an anomaly inside a suitcase bearing Nicholas’s name and flight tag. After further inspection, agents found 3.4 kilograms of marijuana wrapped in plastic inside the suitcase. The bag was repacked and placed on the conveyor belt. Nicholas was taken into custody after he collected the suitcase from the conveyor belt.
Under federal law if convicted of possession of marijuana with intent to distribute, Nicholas faces a maximum sentence of 5years in prison and fine of not more than $250,000. This case is the result of a joint investigation by the HSI and U.S. Customs and Border Protection (CBP). It is being prosecuted by Assistant United States Attorney Delia Smith.
United States Attorney Sharpe reminds the public that a Complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Slidell Woman Charged with Lying to Federal AgentsRead the Press Release
U.S. Attorney Kenneth Polite announced that TRACY C. HARTMAN, 49, of Slidell, was charged today in a Bill of Information with one count of making false statements.
According to the Bill of Information, on or about January 4, 2006, HARTMAN and her husband were approved for a Small Business Administration (“SBA”) disaster loan in the amount of $182,700.
TRACY HARTMAN and her husband defaulted on the SBA disaster loan. As a result of the loan default, in or about June 2010, the SBA began garnishment proceedings for Mr. Hartman’s payroll checks from St. Bernard Parish. In or about December 2011, the SBA stopped receiving the HARTMAN’s garnishment payments from St. Bernard Parish. A letter, purporting to be from the SBA, was received by St. Bernard Parish claiming the debt had been paid and to stop the garnishment. The letter was a forgery and was not prepared by the SBA. On or about April 20, 2012, TRACY HARTMAN made a false statement to federal authorities that she did not know the origin of the fraudulent letter which was hand delivered to the St. Bernard Parish government by her husband on or about November 29, 2011. After further investigation, it was determined that TRACY HARTMAN composed the letter.
If convicted, HARTMAN faces a possible maximum sentence of five years imprisonment, and/or a fine of $250,000, and up to three years of supervised release.
U.S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Small Business Administration, Office of Inspector General in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Schuele Boys Gang Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Tywone Smothers, 36, of Buffalo, pleaded guilty to conspiracy to distribute marijuana before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison, and $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June 2013 and July 2014, Smothers conspired with Damario James and others to distribute marijuana in the City of Buffalo.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Smothers is one of 28 Schuele Boys Gang members and associates arrested in this case. To date, 11 of the defendants have been convicted.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Smothers will be sentenced on December 10, 2015 at 1:00 p.m. before Judge Arcara.
San Antonio Businessman Admits Role in Multi-Million Dollar Investment ScamRead the Press Release
In San Antonio today, 53-year-old Armando Jesus Hernandez Leal of Shavano Park, TX, pleaded guilty to a federal money laundering charge in connection with a multi-million dollar investment fraud scam announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
Appearing this afternoon before United States Magistrate Judge Henry Bemporad, Hernandez admitted responsibility for managing an estimated $66 million investment portfolio of a Mexican businessman and his family from 2005 to 2014, but had not invested his clients’ money like he had agreed. Hernandez spent their money to purchase homes, planes and other assets for his personal use.
Hernandez, who faces up to 20 years in federal prison, is scheduled for sentencing on November 16, 2015.
This investigation was conducted by special agents from the FBI and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
Rochester Man Charged with Firebombing StoreRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Taj Williams, 30, of Rochester, NY, was arrested and charged by criminal complaint with causing or attempting to cause malicious damage or destruction, by means of fire or explosives, of a building used in interstate commerce. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that according to the complaint, on January 18, 2015, the defendant set fire to the Chili Express convenience store at 989 Chili Avenue in Rochester using a Molotov cocktail. A fire previously occurred at the store on November 5, 2012, which ruined much of the merchandise and caused structural damage.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson and is being detained pending a court appearance on October 2, 2015, at 9:00 a.m.
The complaint is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the Rochester Fire Department, Fire Investigation Unit, under the direction of Chief John Schreiber, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rigby Men Plead Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
POCATELLO – Carlos Beltran-Vega, 56, and Francisco Vega, 40, both of Rigby, Idaho, pleaded guilty today to possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on February 16, 2015, law enforcement received information that the defendants had a large amount of methamphetamine in a cooler at a hotel in Idaho Falls, Idaho. Officers conducted surveillance on the hotel room and observed the defendants exit the hotel room and get into a vehicle. The two men had possession of a red cooler when they went from the hotel room into the vehicle. A short time later the vehicle was stopped, and a canine alerted to the presence of drugs in the cooler, where methamphetamine was found. A subsequent search of the hotel room revealed a larger amount of methamphetamine.
The charge is punishable by up to twenty years imprisonment, a term of supervised release of at least three years, and a maximum fine of $1,000,000.
Sentencing is scheduled for November 23, 2015, in Pocatello before Chief United States District Judge B. Lynn Winmill.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Idaho Falls Police Department, and Bonneville County Sheriff’s Department, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service. The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Prior Felon from Eunice Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Ramon Perez, Sr., 34, of Eunice, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 72 months in prison followed by three years of supervised release for violating federal firearms laws.
Perez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.
Perez was arrested on Nov. 17, 2014, on an indictment charging him with unlawfully possessing firearms and ammunition on Dec. 31, 2013, in Lea County, N.M. At the time, Perez was prohibited from possessing firearms and ammunition because he previously had been convicted of numerous felony offenses including possession of cocaine, discharging a firearm, possession of narcotics with intent to distribute, possession of a firearm during the commission of a felony and possession of a controlled substance.
On March 25, 2015, Perez pled guilty to the indictment and admitted possessing three pistols, two of which had obliterated serial numbers, and multiple rounds of ammunition.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lea County Drug Task Force and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Pocatello Man Sentenced for Fort Hall Casino TheftRead the Press Release
POCATELLO – Cory Hugues, 44, of Pocatello, Idaho, pleaded guilty today in United States District Court to theft of funds by an employee from a gaming establishment on Indian lands, U.S. Attorney Wendy J. Olson announced. Hugues was indicted by a federal grand jury on March 24, 2015.
According to the plea agreement, Hugues was employed at the Fort Hall Sage Hill Casino as a uniformed security guard. On January 27, 2015, he was in the cash room at the casino with another employee. The other employee, a banker, counted the money in the safe. It was then Hugues’ duty to spin the dial on the safe to ensure it was locked. Hugues did a partial spin, which appeared to lock the safe, but did not actually do so.
Surveillance video showed Hugues returning to the cash room later, opening the safe and reaching into it. He made a movement toward his left pocket area, then shut the safe, spun the dial and left the cash room.
A cash count the following day showed $2,600 missing from the safe. Hugues was interviewed on a later date by law enforcement and he ultimately confessed to taking the $2,600 from the casino safe and using it to pay bills.
The charge of theft by an employee of a gaming establishment on Indian lands is punishable by up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000.
Hugues is scheduled to be sentenced on December 1, 2015, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Pocatello Police Department.
North Miami Resident Sentenced in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A North Miami resident was sentenced to 31 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $18,469 for his participation in a stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Alexander Paul, 23, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, from February 2, 2014 to May 20, 2014, fifty-three (53) tax returns were filed from Paul’s residence claiming federal tax refunds of $109,322. The IRS paid out $18,469 in refunds on those tax returns.
A search warrant was executed at the defendant’s residence where law enforcement found and seized evidence relating to identity theft and the filing of false tax returns. Personal identification information (PII) of other individuals was found in a notebook, computer, and two cellular telephones in Paul’s bedroom. The computer also contained copies of tax returns filed in the names of other individuals.
Paul admitted to law enforcement that he possessed the PII found in the residence, that he prepared and filed the 53 tax returns electronically submitted to the IRS, and that he loaded the refunds obtained onto debit cards. The defendant did not have permission or authority to use the PII, belonging to other individuals, to prepare the tax returns.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys Daya Nathan and Brooke C. Watson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Niagara Falls Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ronald Carter, 60, of Niagara Falls, NY, who was convicted of conspiracy to distribute over 500 grams of cocaine, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between December 2010 and April 4, 2011, Carter distributed multiple quantities of cocaine in the Niagara Falls area. On April 4, 2011, officers executed a search warrant at the defendant’s 10th Street residence and seized 1.3 kilograms of cocaine, three kilograms of marijuana and $51,913 in United States currency.
The defendant was arrested along with four others. Carter is the fourth defendant to be convicted.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
Nebraska Man Sentenced for Using the Internet to Attempt to Entice a MinorRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Nebraska man convicted of Attempted Enticement of a Minor Using the Internet was sentenced on August 18, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Phillip Holden, age 24, was sentenced to 12 years of imprisonment, followed by 10 years of supervised release, was ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and is to forfeit a Motorola cell phone and $108 in U.S. currency.
Holden was one of five men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2014 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls. All five men were indicted for Commercial Sex Trafficking.
The conviction stemmed from Holden responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several messages with a person Holden believed to be associated with a 12-year old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was $100.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Holden was immediately turned over to the custody of the U.S. Marshals Service.
Monroe County Man Sentenced to 270 Months (22.5 Years) in Prison for Producing Child PornographyRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 45-year-old Tobyhanna man who admitted to producing child pornography was sentenced today to 270 months (22.5 years) in prison by U.S. District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney Peter Smith, the defendant, Robert Ferraro, previously pleaded guilty in May 2015 to using and persuading a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. Ferraro committed the offense between August 2013 and January 2015. The criminal conduct involved Ferraro sexually abusing a six-year-old child, videotaping the abuse, and uploading the video to the internet.
Ferraro was indicted by a federal grand jury in March 2015, as a result of an investigation by Homeland Security Investigations, the Pennsylvania State Police, and the Monroe County District Attorney’s Office.
Judge Mannion ordered Ferraro to serve 10 years on supervised release following his prison sentence. Ferraro must also register as a sex offender and comply with all of the requirements of the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative
launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
# # #
Mexican national pleads guilty to reentering the United States illegallyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Mexican national pleaded guilty to charges that he reentered the United States multiple times illegally.
Hugo Campuzano Cuellar, 37, of Mexico, pleaded guilty before U.S. District Judge Richard T. Haik to one count of illegal reentry of a deported alien. According to the guilty plea, immigration officers encountered Cuellar in the St. Mary Parish jail on April 8, 2015. He admitted that he was a citizen of Mexico. He was previously removed from the United States on May 23, 2002, May 16, 2005 and May 7, 2009.
Cuellar faces 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date was not set.
Homeland Security Investigations and the St. Mary Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Dominic A. Rossetti is prosecuting the case.
Mexican National Pleads Guilty to Federal Narcotics Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Maria Marcelina Cardoza-Burciaga, 39, a Mexican national, pleaded guilty this afternoon in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Cardoza-Burciaga, and co-defendant Joel Dominguez-Morales, 40, a Mexican national, were arrested in May 2015, on a criminal complaint charging them with possession of methamphetamine with intent to distribute. The criminal complaint charged the duo with negotiating the sale of eight pounds of methamphetamine to an undercover agent in early May 2015, in Lea County, N.M. It also alleged that they were arrested on May 6, 2015, when they attempted to complete the drug deal.
Cardoza-Burciaga and Dominguez-Morales were subsequently indicted on July 23, 2015, in a one-count indictment that also charged three other defendants: Jose Manuel Trujillo, 40, a Mexican national, Myrna Orozco, 31, of Denver City, Texas, and Javier Amador Flores, 48, of Hobbs, N.M. According to the indictment, the five defendants conspired to distribute methamphetamine from May 1, 2015 through May 6, 2015, in Lea County.
During today’s proceedings, Cardoza-Burciaga pled guilty to the indictment and admitted that on May 6, 2015, she conspired with her co-defendants to distribute methamphetamine. She also admitted delivering methamphetamine to one of her co-defendants at an abandoned bar in Hobbs. She acknowledged that she delivered the methamphetamine for the purpose of distributing it to other individuals.
At sentencing, Cardoza-Burciaga faces a maximum statutory penalty of 20 years in prison followed by not less than three years of supervised release. She remains in custody pending a sentencing hearing which has yet to be scheduled.
Dominguez-Morales, Orozco and Flores have entered not guilty pleas to the indictment and are awaiting trial. Charges in criminal complaints and indictments are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt. Trujillo has yet to be arrested and is considered a fugitive.
This case was investigated by Homeland Security Investigations, U.S. Customs and Border Protection, and the Lea County Drug Task Force. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mexican Drug Kingpin Sentenced to 11 Years in Prison for Trafficking Black Tar HeroinRead the Press Release
CHARLOTTE, N.C. – The head of a Mexican drug trafficking organization (DTO) responsible for producing and distributing vast quantities of heroin into the United States was sentenced today by U.S. District Judge Robert J. Conrad, Jr., announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Carlos Ramon Castro-Rocha, a/k/a “Cuate,” 41, of Sinaloa, Mexico, was handed down a 135-month sentence, followed by a five-year term of supervised release.
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 Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD), join Acting U.S. Attorney Rose in making today’s announcement.
According to court documents and court proceedings, between 2005 and 2008, Castro-Rocha, a Mexican drug kingpin, ran an extensive drug trafficking network and oversaw all aspects of his drug operation, from production in Mexico, to smuggling the narcotics across the border, to distribution in cities throughout the U.S. In September 2007, law enforcement seized more than two and a half kilograms (approximately six pounds) of black tar heroin that had been trafficked to Charlotte through Castro-Rocha’s drug distribution network, as well as over $110,000 in cash and a handgun. Court records indicate that in August 2008, law enforcement made two additional seizures of approximately one kilogram of black tar heroin each. According to court records, between 2005 and 2008, Castro-Rocha’s network trafficked up to 10 kilograms of black tar heroin in the Charlotte area alone, with an approximate street value of $1.2 million.
The U.S. Department of Justice designated Castro-Rocha as a Consolidated Priority Organization Target, or “CPOT,” a designation reserved for the highest command and control level drug traffickers, who run organizations that smuggle large quantities of narcotics into the United States. There are only 42 individuals in the world designated as a CPOT.
Castro-Rocha was charged by a criminal complaint and later formally indicted in the Western District of North Carolina in June 2009. The indictment was unsealed after Mexican authorities arrested Castro-Rocha in Mexico, on May 30, 2010, pursuant to extradition proceedings initiated by the Justice Department. Castro-Rocha filed several unsuccessful appeals in the Mexican judicial system, and was eventually extradited to the United States in October 2012.
In April 2014, Castro-Rocha pleaded guilty to one count of conspiracy to import heroin and one count of conspiracy to possess with intent to distribute heroin. In addition to prosecution of the organization’s leader, this investigation has resulted in the prosecution of 11 defendants associated with Castro-Rocha’s DTO. Following today’s sentencing in the Western District of North Carolina, Castro-Rocha will be transferred to Arizona to face federal drug trafficking and related charges pending against him in that district.
Castro-Rocha’s prosecution stems from “Operation Dirty Girl II,” which is the local portion of a national anti-drug initiative, “Project Deliverance,” aimed at stemming the flow of illegal narcotics into the U.S. Led by the DEA and other members of the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), Dirty Girl II focused on disrupting and dismantling the infrastructure of Castro-Rocha’s drug trafficking network, which was responsible for producing and smuggling in the U.S. vast quantities of heroin, including a highly dangerous form, black tar heroin. “Dirty Girl” is the street name for black tar heroin.
In making today’s announcement Acting U.S. Attorney Rose commended the DEA and CMPD for handling the investigation. She also thanked the FBI, the Gastonia Police Department and the Union County Sheriff’s Office for their assistance. Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte coordinated in the investigation and prosecuted the case.
Meriden Hotel Agrees to Make Changes to Comply with Americans with Disabilities ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a voluntary compliance agreement with the Comfort Inn & Suites of Meriden, Connecticut, to resolve allegations that the hotel was not being operated in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
Under federal law, private entities that own or operate “places of public accommodation,” which includes hotels, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and to undertake periodic reviews of compliance of covered entities. The Department of Justice is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
The Comfort Inn & Suites of Meriden is in the process of making the changes required by the compliance agreement, including improvements to accessible rooms, public areas and the parking lot. The improvements will continue over the next 18 months.
The hotel’s owners and management worked cooperatively with the U.S. Attorney’s Office to address the ADA issues without litigation.
“The Americans with Disabilities Act ensures that individuals are able to access and enjoy the state’s hotels and other public accommodations,” stated U.S. Attorney Daly. “Our Office is committed to enforcing the ADA, which requires businesses to appropriately serve the diverse population of patrons who live, work, and visit Connecticut. We appreciate the willingness of Comfort Inn & Suites to make the necessary changes.”
Any member of the public who wishes to file a complaint alleging that a hotel or any other place of public accommodation in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice’s Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney David C. Nelson of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Meraux Man Sentenced to 5 Years in Prison for Conspiracy Related to Falsifying Records for Gun PurchaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICKEY COLEMAN, age 26, of Meraux, was sentenced today after previously pleading guilty to one count of conspiring to falsify ATF records related to the purchase of a firearm.
U.S. District Judge Sarah S. Vance sentenced COLEMAN to 60 months in prison to be followed by 3 years of supervised release.
According to court records, COLEMAN enlisted the help of two other individuals to aid in the purchase of a firearm from Academy Sports in Elmwood on June 9, 2013. COLEMAN was a previously convicted felon and prohibited from buying a firearm. The female who purchased the firearm falsified an ATF form regarding the true ownership of the firearm.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in investigating this matter along with the assistance of the St. Bernard Sheriff’s Office. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.
Members and Associates of Violent Mount Vernon Street Gang Known as “Boss Playa Family” or “BPF” Charged in Federal Court with Racketeering Offenses, Including Two Murders of Rival Gang MembersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Janet DiFiore, the District Attorney for Westchester County, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging seven members and associates of a Mount Vernon-based street gang, “Boss Playa Family” or “BPF,” with participation in a racketeering conspiracy and firearms offenses, and charging certain of those BPF members and associates with murder in aid of racketeering and narcotics conspiracy.
Two of the defendants charged in the Indictment were arrested today. ANTOINE LITTLE was arrested in Bedford, Texas, and will be presented today in federal court in Fort Worth, Texas. GORHAM VALENTINE was arrested today in Norwalk, Connecticut and will be presented this afternoon along with RAMSEUR in White Plains federal court before U.S. Magistrate Judge Lisa Margaret Smith. Four of the seven defendants charged in the Indictment unsealed today, JAMEL UPSON, TYRONE McCALLUM, PORTLAND RAMSEUR, and JASON WHITE, were previously in state custody.
U.S. Attorney Preet Bharara said: “Members of the BPF gang allegedly unleashed a terrifying wave of violence on the streets of Mount Vernon. Over the course of several years, BPF gunfire erupted in and around the gang’s territory with shocking and tragic frequency. On two of those occasions, the defendant Jamel Upson, one of BPF’s leaders, allegedly shot and killed members of a rival gang. The charges brought today serve as a reminder that we and our law enforcement partners are determined to combat the scourge of gang and drug violence in Mount Vernon.”
Westchester County District Attorney Janet DiFiore stated: “The allegations in this indictment describe the frightening and brazen hold these defendants had on neighborhoods in and around the City of Mount Vernon. Over the past several years we have worked tirelessly to pursue members and associates of this gang and now as a result of the collaborative efforts of federal, state and local law authorities these defendants will be held accountable for the crimes they now stand accused of. Our priority is and will continue to be enhancing the safety and quality of life for all of the hard working residents of the City of Mount Vernon.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “As alleged, the Mount Vernon-based street gang ‘Boss Playa Family’ used violence and an array of criminal activities to enhance the gang’s power and protect its territory. It’s gang related activity like this that infects our communities with an illness that kills our neighborhoods’ safety and growth. However, there is an antidote to this that is made of law enforcement working at both the federal and local level to get gangs like this off the street.”
According to the allegations in the Indictment and other documents in the public record:[1]
The BPF street gang was a criminal enterprise that operated principally in and around the City of Mount Vernon, New York, from at least in or about 2007 up to and including 2014. BPF members and associates sought to enhance the gang’s power, protect and expand its territory, and enrich its members through a wide array of criminal activities, including murder, attempted murder, larceny, arson, and the distribution of cocaine and marijuana. BPF members and associates expressly acknowledged and celebrated their gang affiliation through various means, including by wearing clothing emblazoned with “Boss Playa Family” and “BPF,” and by creating and posting on the Internet rap videos that promoted BPF.
One of BPF’s principal objectives was to maintain and exercise control over its territory, the area of Seventh Avenue and Sandford Boulevard in Mount Vernon. To that end, BPF sought to assert its dominance over rival gangs, particularly the “Goonies,” a gang based in a neighboring area of Mount Vernon. During the time period relevant to the Indictment, BPF members and associates were responsible for numerous acts of violence targeting members of the rival Goonies gang, including multiple murders and many other shootings. In furtherance of such violence, firearms were maintained in stash locations by certain BPF members and associates for shared use by other members and associates of the gang when guns were needed to strike or retaliate against the Goonies.
The violence perpetrated by BPF turned deadly on two occasions in 2008. On or about August 13, 2008, JAMEL UPSON, one of BPF’s lead enforcers or “shooters,” aided and abetted by others known and unknown, murdered Shomari Knox, a member of the Goonies, by shooting Knox in the area of Ninth Avenue and Third Street in Mount Vernon. Several months later, on or about December 14, 2008, UPSON, again aided and abetted by others known and unknown, murdered another member of the Goonies, Cory Cabiness, by shooting him in the vicinity of the Ebony Gardens apartment complex in Mount Vernon. As alleged in the Indictment, UPSON committed these murders in order to maintain and increase his position in the BPF gang.
* * *
Counts One and Two of the Indictment charge all seven defendants, JAMEL UPSON, SHAWN EVANS, ANTOINE LITTLE, TYRONE McCALLUM, PORTLAND RAMSEUR, GORHAM VALENTINE, and JASON WHITE, with a BPF racketeering conspiracy and firearms offenses in connection with that conspiracy. As alleged, various combinations of those defendants committed, among other acts of racketeering, at least eight shootings in furtherance of the BPF conspiracy. Counts Three and Four of the Indictment charge UPSON with murder in aid of racketeering activity and a related firearms offense in connection with the August 2008 murder of Shomari Knox, and Counts Five and Six charge UPSON with murder in aid of racketeering activity and a related firearms offense in connection with the December 2008 murder of Cory Cabiness. Finally, Count Seven of the Indictment charges UPSON, RAMSEUR, and WHITE with conspiring to distribute cocaine and marijuana in and around BPF territory.
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and the Mount Vernon Police Department. He also thanked the Westchester County District Attorney’s Office for its participation and support in this ongoing investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys George Turner and Daniel Filor are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
15-221
United States v. Jamel Upson, et al., 15 Cr. 570
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
JAMEL UPSON
SHAWN EVANS
ANTOINE LITTLE
TYRONE McCALLUM
PORTLAND RAMSEUR
GORHAM VALENTINE
JASON WHITE
UPSON: Life in prison
Other Defendants: 20 years in prison
2
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
18 U.S.C. § 924(c)
JAMEL UPSON
SHAWN EVANS
ANTOINE LITTLE
TYRONE McCALLUM
PORTLAND RAMSEUR
GORHAM VALENTINE
JASON WHITE
Life in prison
Mandatory minimum of 10 years in prison
3
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
JAMEL UPSON
Death penalty, or mandatory life in prison
4
Murder through use of a firearm
18 U.S.C. §§ 924(j), 924(c)(1)(A)(iii), 924(c)(1)(C)(i)
JAMEL UPSON
Death penalty, or life in prison
Mandatory minimum of 25 years in prison
5
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
JAMEL UPSON
Death penalty, or mandatory life in prison
6
Murder through use of a firearm
18 U.S.C. §§ 924(j), 924(c)(1)(A)(iii), 924(c)(1)(C)(i)
JAMEL UPSON
Death penalty, or life in prison
Mandatory minimum of 25 years in prison
7
Narcotics conspiracy
21 U.S.C. §§ 846, 841(b)(1)(C), 841(b)(1)(D)
JAMEL UPSON
PORTLAND RAMSEUR
JASON WHITE
20 years in prison
Defendant
Age
Residence
JAMEL UPSON
31
Mount Vernon, NY
SHAWN EVANS
27
Mount Vernon, NY
ANTOINE LITTLE
32
Bedford, TX
TYRONE McCALLUM
28
Mount Vernon, NY
PORTLAND RAMSEUR
30
Mount Vernon, NY
GORHAM VALENTINE
30
Mount Vernon, NY
JASON WHITE
32
Mount Vernon, NY
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Member of Colombian Terrorist Organization Pleads Guilty to Hostage-Taking of U.S. CitizensRead the Press Release
Three Hostages Were Held in Colombia for More than Five Years
Diego Alfonso Navarrete Beltran, 43, a member of the Fuerzas Armadas Revolucionarias Colombianas (FARC) terrorist organization, pleaded guilty today in the U.S. District Court of the District of Columbia to hostage-taking charges stemming from the 2003 kidnappings of three U.S. citizens in Colombia.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Special Agent in Charge George L. Piro of the FBI’s Miami Division.
Navarrete Beltran was extradited from Colombia to the United States in November 2014 to face charges in a superseding indictment that was returned in February 2011. He pleaded guilty to three counts of hostage-taking. The offense carries a maximum sentence of life in prison. Senior U.S. District Judge Royce C. Lamberth of the District of Columbia scheduled sentencing for Nov. 10, 2015. Two other FARC leaders were convicted for their roles in the hostage-taking.
“This case underscores our resolve to hold accountable those who target our citizens with violence anywhere in the world,” said Assistant Attorney General Carlin. “With this guilty plea, Diego Alfonso Navarrete Beltran has admitted his participation in the hostage taking and captivity of three Americans by the FARC, a Colombian terrorist organization. I want to thank all of the prosecutors, agents and analysts who made this result possible.”
“Today’s guilty plea is another step toward obtaining justice for the three U.S. citizens who were brutally held captive in Colombia for over five years,” said Acting U.S. Attorney Cohen. “This defendant is now the third member of a Colombian terrorist organization convicted of charges for his role in the hostage-taking. This case demonstrates the determination of law enforcement to investigate and prosecute terrorism against our citizens here and abroad.”
“Marc D. Gonsalves, Thomas R. Howes and Keith Stansell were held hostage in the jungles of Colombia for over five years by the FARC,” said Special Agent in Charge Piro. “The conditions they endured while held prisoner were horrendous. Today, another member of this terrorist organization has admitted to taking part in this despicable crime. Despite the passage of time, our commitment to hold these individuals accountable for harming U.S. citizens does not waiver.”
According to a statement of facts submitted as part of the plea hearing, the FARC is an armed, violent organization in Colombia, formed in 1964 as the armed wing of the Colombian Communist Party. It has evolved into a major armed force financed by drug trafficking, hostage-taking and extortion. International human rights organizations have repeatedly accused the FARC of serious crimes, including kidnapping, murder, use of land mines, threats, the recruitment of minors, forced displacement and hostage-taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
As described in the statement of offense, Navarrete Beltran was a member of the First Front in the FARC’s Southern Block.
In his plea, he admitted taking part in the hostage-taking of three U.S. citizens, Marc D. Gonsalves, Thomas R. Howes and Keith Stansell. These three individuals, along with Thomas Janis, a U.S. citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC after their single engine aircraft made a crash landing near Florencia, Colombia. Janis and Cruz were murdered at the crash site by members of the FARC.
For the next five and a half years, according to the statement of offense, Gonsalves, Howes, Stansell and many others were held prisoners by the FARC and used to bargain with the Colombian government. Along with about a dozen Colombian hostages, they were forced to march from one site to another to prevent their rescue. They were threatened, chained and forced to participate in proof-of-life videos. In early October 2006, the hostages were delivered to the FARC’s Southern Block’s First Front and were held prisoners by the First Front of the FARC.
From October 2006 through mid-June 2008, according to the statement of offense, Navarrete Beltran and other guerillas kept the hostages under the control of the FARC’s First Front. In particular, Navarrete Beltran often served as an armed guard of the American hostages.
In July 2008, the Colombian military conducted an operation which resulted in the rescue of the hostages. All told, members of the FARC held the Americans hostage for 1,967 days.
This investigation is being led by the FBI’s Miami Field Division. The prosecution is being handled by Assistant U.S. Attorneys Kenneth Kohl and Fernando Campoamor-Sanchez of the District of Columbia, and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
Substantial assistance in the case was provided by the Justice Department’s Office of International Affairs, the department’s Judicial Attachés in Colombia, the FBI’s Office of the Legal Attaché in Colombia and the FBI’s Washington, D.C., Field Office.
Navarrete Beltran Plea Agreement
Member of Colombian Terrorist Organization Pleads Guilty to Hostage-Taking of Three U.S. CitizensRead the Press Release
WASHINGTON – Diego Alfonso Navarrete Beltran, 43, a member of the Fuerzas Armadas Revolucionarias Colombianas (FARC) terrorist organization, pleaded guilty today in the U.S. District Court for the District of Columbia to hostage-taking charges stemming from the 2003 kidnappings of three U.S. citizens in Colombia.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia and Special Agent in Charge George L. Piro of the FBI’s Miami Division.
Navarrete Beltran was extradited from Colombia to the United States in November 2014 to face charges in a superseding indictment that was returned in February 2011. He pleaded guilty to three counts of hostage-taking. The offense carries a maximum sentence of life in prison. Senior U.S. District Judge Royce C. Lamberth of the District of Columbia scheduled sentencing for Nov. 10, 2015. Two other FARC leaders were convicted for their roles in the hostage-taking.
“This case underscores our resolve to hold accountable those who target our citizens with violence anywhere in the world,” said Assistant Attorney General Carlin. “With this guilty plea, Diego Alfonso Navarrete Beltran has admitted his participation in the hostage taking and captivity of three Americans by the FARC, a Colombian terrorist organization. I want to thank all of the prosecutors, agents and analysts who made this result possible.”
“Today’s guilty plea is another step toward obtaining justice for the three U.S. citizens who were brutally held captive in Colombia for over five years,” said Acting U.S. Attorney Cohen. “This defendant is now the third member of a Colombian terrorist organization convicted of charges for his role in the hostage-taking. This case demonstrates the determination of law enforcement to investigate and prosecute terrorism against our citizens here and abroad.”
“Marc D. Gonsalves, Thomas R. Howes and Keith Stansell were held hostage in the jungles of Colombia for over five years by the FARC,” said Special Agent in Charge Piro. “The conditions they endured while held prisoner were horrendous. Today, another member of this terrorist organization has admitted to taking part in this despicable crime. Despite the passage of time, our commitment to hold these individuals accountable for harming U.S. citizens does not waiver.”
According to a statement of facts submitted as part of the plea hearing, the FARC is an armed, violent organization in Colombia, formed in 1964 as the armed wing of the Colombian Communist Party. It has evolved into a major armed force financed by drug trafficking, hostage-taking and extortion. International human rights organizations have repeatedly accused the FARC of serious crimes, including kidnapping, murder, use of land mines, threats, the recruitment of minors, forced displacement and hostage-taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
As described in the statement of offense, Navarrete Beltran was a member of the First Front in the FARC’s Southern Block.
In his plea, he admitted taking part in the hostage-taking of three U.S. citizens, Marc D. Gonsalves, Thomas R. Howes and Keith Stansell. These three individuals, along with Thomas Janis, a U.S. citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC after their single engine aircraft made a crash landing near Florencia, Colombia. Janis and Cruz were murdered at the crash site by members of the FARC.
For the next five and a half years, according to the statement of offense, Gonsalves, Howes, Stansell and many others were held prisoners by the FARC and used to bargain with the Colombian government. Along with about a dozen Colombian hostages, they were forced to march from one site to another to prevent their rescue. They were threatened, chained and forced to participate in proof-of-life videos. In early October 2006, the hostages were delivered to the FARC’s Southern Block’s First Front and were held prisoners by the First Front of the FARC.
From October 2006 through mid-June 2008, according to the statement of offense, Navarrete Beltran and other guerillas kept the hostages under the control of the FARC’s First Front. In particular, Navarrete Beltran often served as an armed guard of the American hostages.
In July 2008, the Colombian military conducted an operation which resulted in the rescue of the hostages. All told, members of the FARC held the Americans hostage for 1,967 days.
This investigation is being led by the FBI’s Miami Field Division. The prosecution is being handled by Assistant U.S. Attorneys Kenneth Kohl and Fernando Campoamor-Sanchez of the District of Columbia, and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
Substantial assistance in the case was provided by the Justice Department’s Office of International Affairs, the department’s Judicial Attachés in Colombia, the FBI’s Office of the Legal Attaché in Colombia and the FBI’s Washington, D.C., Field Office.
Mastermind of Arson-for-Profit Scheme Sentenced to PrisonRead the Press Release
PROVIDENCE, R.I. – Kormahyah Karmue, 40, of Providence, was sentenced today to 78 months in federal prison, having been convicted by a federal court jury of being the mastermind behind an arson-for-profit scheme to set fire to an occupied multi-family dwelling he owned in Providence in an effort to collect more than $725,000 in insurance payments.
Karmue was also sentenced for defrauding the government of $61,250 in unemployment compensation he was not entitled. Prior to the start of his trial on charges of masterminding the arson-for-profit scheme, Karmue admitted to the court that beginning in July 2009 he repeatedly filed false documents and collected unemployment compensation from the Rhode Island Department of Employment and Training while self-employed. On his application, Karmue denied he was unemployed. He pleaded guilty to theft of government funds.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Karmue to serve three years supervised release upon completion of his prison term and to pay $72,420 restitution: $35,000 to U.S. Treasury, $26,250 to State of Rhode Island and $11,200 to Allstate Insurance. A jury convicted Karmue on May 14, 2015, of conspiracy to commit arson and three counts each of wire fraud and mail fraud.
Three co-defendants who pleaded guilty to charges related to their participation in the scheme were sentenced earlier this month. Gbabia Kollie, 27, of Johnson City, Tenn., was sentenced on July 15 to three years in federal prison to be followed by three years supervised release, and ordered restitution in the amount of $2,800; Nakele Freeman, 21, of Providence, was sentenced on July 16 to three years in federal prison to be followed by three years supervised release, and ordered to pay restitution in the amount of $2,800; and Abraham Kerkula, 21, of Pawtucket, who was arrested and detained on November 15, 2013, was sentenced on July 16, 2015 to time served in federal prison and three years supervised release. He was ordered to pay restitution in the amount of $2,800.
The sentences are announced by United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Providence Public Safety Commissioner Steven M. Paré.
The government’s evidence showed that on November 2, 2013, an individual working at the direction of Karmue and others, intentionally spread gasoline around a third floor apartment inside 31-33 Ida Street. The gasoline was inadvertently ignited by a flame from a gas heater before the individual could strike a match. Several occupants in the building, including a family with five young children inside a second floor apartment, fled from the building. Karmue orchestrated the scheme from Liberia.
According to the government’s evidence, beginning in early October 2013, Karmue communicated from Liberia with Kollie, convincing him to travel to Rhode Island to set fire to the Ida Street building in an effort to avoid foreclosure and to collect insurance payments. Karmue promised to pay Kollie between $15,000 and $30,000 for his role in the arson-for-profit scheme.
According to the government’s evidence, after arriving in Rhode Island in late October, Kollie changed his mind and decided that he would not set fire to the tenement and returned home to Tennessee. After returning home, Kollie contacted a brother-in-law in Rhode Island, Nakelee Freemen, and enlisted his assistance to help to carry out the arson-for profit scheme in exchange for $7,500.
On November 1, 2013, Freeman contacted Abraham Kerkula and asked him to drive him to a location where he, Freeman, was going to set fire to a building for “a lot of money.” Freeman and Kerkula traveled together to at least two retail outlets where Freeman purchased several items, including a five-gallon gasoline storage container, a one-gallon liquid storage container and gloves. They then traveled to a local supermarket where Freeman filled the larger storage container with gasoline.
According to the government’s evidence, in the early morning hours of November 2, 2013, Kerkula and Freeman drove to the target property. A surveillance camera attached to a nearby building captured images of the vehicle Kerkula was driving as it arrived at the targeted property, drove past the building, then returned and stopped in front of a driveway. Freeman can be seen in the video exiting the vehicle, removing the gasoline container and other items from the vehicle and then entering the property through a side door using keys the evidence showed that he and Kerkula retrieved earlier in the day.
According to the government’s evidence, once inside the building Freeman entered a third floor apartment where he spread gasoline on the floor of a bedroom which was being used for storage and in the kitchen. Before Freeman could finish spreading the gasoline and striking a match to ignite the fuel, the gasoline was ignited by a flame from a gas heater. Freeman fled the building to Kerkula’s vehicle which had moved to at a pre-determined location on a nearby side street. Once inside the vehicle Freeman stated to Kerkula that the fire had not gone as planned, and they fled the area.Members of the Providence Fire Department’s Arson Squad who responded to the Ida Street property shortly after Providence Fire Department firefighters quickly determined that the fire likely was deliberately set.
As the Providence Fire Department, joined by investigators and agents from ATF, continued to investigate the cause of the fire and who was responsible, Karmue began communicating with his insurance carrier seeking payment for damages to the building and for relocation expenses. Over the course of the next several months Karmue was provided three insurance payments for relocation expenses. The building was insured for $725,583.
As a result of information developed by the Providence Fire Department’s Arson Squad and ATF, Freeman and Kerkula were arrested on federal criminal complaints on November 15, 2013, and ordered detained. Gbabia Kollie was removed from an outbound international flight leaving Atlanta for Liberia and arrested by ATF agents on a federal criminal complaint on December 5, 2013. He was returned to Rhode Island and ordered detained.
Karmue, who returned to the United States from Liberia within days of the fire being set, was arrested in Providence on May 27, 2014, and detained in federal custody.
The case was prosecuted by Assistant U.S. Attorneys William J. Ferland and Richard B. Myrus.
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Mandeville Postal Worker Pleads Guilty to Stealing Gift Cards from the MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHNNY BAHAM, age 53, of Mandeville, entered a plea of guilty today to stealing the United States mail.
According to the court documents, BAHAM was employed as a contract letter carrier in Mandeville. A federal investigation revealed that in December 2014, BAHAM stole first class mail containing two $75.00 Master Card gift cards from his mail route.
BAHAM faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Helen G. Berrigan set sentencing for December 2, 2015.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office of Inspector General in investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Manchester Man Convicted of Operating Continuing Criminal EnterpriseRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith today announced that Alkis Nakos (“Nakos”), age 36, was convicted by a federal jury of operating a Continuing Criminal Enterprise, in violation of Title 21, United States Code, Section 848, and of engaging in a conspiracy to distribute, and possess with intent to distribute, MDMA (a/k/a Ecstasy) and in excess of 1000 kilograms of marijuana, in violation of Title 21, United States Code, Section 846.
Testimony and other evidence during the week-long trial established that between 2008 and 2014 Nakos was part of a Drug Trafficking Organization (“DTO”) centered in Canada and led by Mihail Leventis, a Canadian citizen. The DTO was responsible for the transportation of large quantities of marijuana into the United States by various methods, including 1000-pound loads delivered by tractor trailers. The marijuana destined for New Hampshire was packaged in Home Depot boxes or black hockey bags and typically labeled “NH,” a reference Nakos, the intended recipient of the marijuana.
The investigation revealed that Nakos obtained and distributed significant quantities of marijuana and MDMA (a/k/a Ecstasy). Nakos directed one of his coconspirators, Kosmas Koustas, to obtain marijuana for distribution from DTO members located in Worcester and Millbury, Massachusetts. After Koustas obtained the marijuana he transported it to New Hampshire and then distributed it to numerous coconspirators for further distribution.
On March 30, 2014, law enforcement executed a search warrant at the residence of Kosmas Koustas. During the search, law enforcement seized a shoebox containing approximately two pounds of MDMA, firearms, and one pound, vacuum-sealed package containing marijuana. The packaging of the one pound of marijuana contained the letters “NH” and “Grand Master” written across the top.
Alkis Nakos is scheduled to be sentenced on December 18, 2015. Each of the counts contained in the Indictment carry a 20 year minimum mandatory term of incarceration. The investigation was conducted by the Drug Enforcement Administration, the Immigration and Customs Enforcement, the US Customs and Border Patrol, the New Hampshire State Police, the Massachusetts State Police, the Manchester, New Hampshire, Police Department, the New Hampshire Liquor Commission, the Oklahoma State Police, and the Pittsburg, New Hampshire, Police Department. The prosecution was handled by Assistant United States Attorney Terry L. Ollila.
Man Found Guilty of Trafficking Crack CocaineRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced today that a jury convicted DONALD JEROME PARKER, also known as “DP”, 27, of Rocky Mount, North Carolina, of two counts of distributing a quantity of cocaine base (crack) and two counts of distributing 28 grams or more of cocaine base (crack). The jury returned its verdict following a trial in federal court before Senior United States District Judge Malcolm J. Howard.
PARKER was named in a Superseding Indictment on August 4, 2015. He was originally indicted on March 3, 2015. The defendant was the target of an investigation which was a collaborative effort among several law enforcement agencies, to include the Nash County Sheriff’s Office, Rocky Mount Police Department, and the Drug Enforcement Administration.
At trial, the Government presented evidence that on five separate instances PARKER sold over 189 grams of crack cocaine to a confidential informant between March 5, 2013 and March 11, 2013 in Rocky Mount, North Carolina. In addition to being visible on videos selling crack cocaine, during one of the controlled buys PARKER could also be heard cooking crack cocaine in the presence of the confidential informant.
At sentencing, PARKER faces a maximum of 40 years imprisonment followed by 4 years of supervised release.
The case was investigated by the Drug Enforcement Administration, Nash County Sheriff’s Office and the Rocky Mount Police Department and prosecuted by Assistant U.S. Attorneys Dena J. King and Dennis Duffy.
Las Vegas Men Convicted of Transporting Two Minor Girls from Nevada to California to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – Two men who were arrested last year as part of a joint law enforcement operation to catch child predators in southern Nevada, “Operation Protect the Powerless,” have been convicted in federal court of sex trafficking and prostitution crimes for transporting two minor girls from Nevada to southern California to work as prostitutes, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“We will continue to aggressively investigate and prosecute cases involving the exploitation of minors as part of our implementation of the Project Safe Childhood initiative in Nevada,” said U.S. Attorney Bogden. “This case demonstrates the excellent and effective partnerships that have been developed between local and federal law enforcement officers and agents to identify and prosecute these sexual predators.”
Following a five-day jury trial, Sha-Ron Haines, 20, was convicted on Tuesday, Aug. 25, 2015, of one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, one count of conspiracy to transport a minor for prostitution or other illegal sexual activity, and one count of transportation of a minor for prostitution. Haines is scheduled to be sentenced on Dec. 8, and faces a minimum of 10 years to life in prison and a $250,000 fine.
Tyral Edward King, 19, pleaded guilty on Aug. 14, 2015, to one count of transportation of an individual for the purpose of prostitution. He is scheduled to be sentenced on Dec. 10, and faces up to 10 years in prison and a $250,000 fine.
According to the court records and evidence introduced at trial, the investigation commenced on June 24, 2014, when a Clark County probation officer notified a Las Vegas Metropolitan Police Department officer that a 15-year-old female might be involved in prostitution. Further investigation revealed that in May 2014, Haines and King had driven the 15-year-old female, identified in the court filings as “JC,” and a 17-year-old female, identified in the court filings as “AS,” from Las Vegas to Pomona, Calif. and Los Angeles, Calif., with the intent that they engage in prostitution. King’s name and credit card were used to purchase online advertisements on an internet site commonly used by prostitutes and pimps called, “Backpage,” to set up prostitution dates for JC and AS in California. During May, JC and AS then engaged in prostitution acts in California, and all of the money they earned was turned over to Haines and King. On May 22, 2014, AS was arrested by an undercover Los Angeles police officer who had responded to one of the advertisements on “Backpage,” and had met AS at a hotel for sex. JC later returned home to Las Vegas on a bus.
A federal criminal complaint was filed against King on July 24, 2014. Haines and King were then indicted by the federal grand jury on Aug. 6, 2014.
Operation Protect the Powerless was organized and led by the Project Safe Childhood (PSC) Task Force in southern Nevada, and targeted child traffickers, persons who were coercing and enticing minors for sex, child pornographers, child molesters and child rapists. Members of the PSC Task Force include the FBI, Homeland Security Investigations, the Las Vegas Metropolitan Police Department, Henderson Police Department, Clark County D.A.’s Office and the U.S. Marshals Service. Operation Protect the Powerless occurred from June 1 to Dec. 31, 2014, and resulted in the prosecution and conviction of 219 persons, the execution of 100 search warrants, and the recovery of over 500,000 images and 2,700 videos of child rape and pornography. The surge also resulted in prosecutions are being handled jointly by the U.S. Attorney’s Office and Clark County District Attorney’s Office, and resulted in distinct charges in federal and state court.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Cartier-Giroux and Susan Cushman.
PSC is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about PSC, please visit www.usdoj.gov/psc.
Jury Convicts Odessa Brothers on Federal Drug and Firearms ChargesRead the Press Release
In Midland today, a jury convicted two Odessa brothers on federal drug and firearms charges announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division, Ector County Sheriff Mark Donaldson and Odessa Police Chief Timothy Burton.
The jury convicted 40-year-old Pedro Saucedo Madrid (aka “Kiko”) of one count of conspiracy to possess with intent to distribute a controlled substance; three counts of possession of a firearm during and in relation to a drug trafficking crime; and, two counts of felon in possession of a firearm. The jury also convicted 38–year-old Elizar Saucedo Madrid (aka “Chiquito”) of one count of conspiracy to possess with intent to distribute a controlled substance; two counts of possession of a firearm during and in relation to a drug trafficking crime; and, one count of felon in possession of a firearm.
On December 5, 2014, HSI special agents, Ector County Sheriff’s deputies and Odessa Police officers executed a search warrant at the defendants’ residence and seized distribution quantities of methamphetamine, heroin and cocaine along with two semi-automatic weapons. During a traffic stop on February 7, 2015, Ector County authorities seized cocaine, methamphetamine, a sawed-off 12-gauge shotgun and three 9mm semi-automatic pistols from inside Pedro Madrid’s vehicle. Testimony revealed that both defendants had prior felony convictions; Pedro in 1993 for Arson in Ector County; and Elizar, in 2008 for Obstruction and Retaliation in Ector County. Courtroom testimony also revealed that Pedro threatened the life of his co-defendant, 34-year-old Albert Prieto of Odessa, in an attempt to prevent Prieto from testifying during trial.
Pedro Madrid and Elizar Madrid face between ten years and life in federal prison. Sentencing is scheduled for November 2015, before Senior U.S. District Judge Robert A. Junell in Midland. Prieto, who pleaded guilty to the drug conspiracy charge prior to jury selection, faces between ten years and life in federal prison. Prieto is scheduled for sentencing at 10:00am on October 7, 2015, before Judge Junell in Midland.
This case was investigated by the Homeland Security Investigations (HSI) together with the Ector County Sheriff’s Department and the Odessa Police Department. Assistant United States Attorney LaTawn Warsaw is prosecuting this case on behalf of the Government.
Jury Convicts KC Man of Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of illegally possessing firearms.
Thomas L. Lynch, 50, of Kansas City, was found guilty of being a felon in possession of firearms.
Evidence introduced during the trial indicated that Lynch was in possession of a Desert Eagle .380-caliber pistol that had been reported as stolen, a Smith & Wesson .38-caliber revolver and a Lorcin .22-caliber pistol on May 11, 2015.
Kansas City, Mo., police officers responded to a local motel on May 11, 2015, on a report of a suspicious party armed with a gun. The person who called the police told officer that he was in the parking lot when he saw the front door of Lynch’s motel room standing open. When Lynch saw him, he came to the door with two guns in his hands. Lynch held the guns up to his mouth and kissed the tip of both barrels while staring at him, which the caller perceived as a threat.
Lynch, who was on parole for assaulting a law enforcement officer and receiving stolen property, had four outstanding Kansas City warrants as well as an outstanding Independence, Mo., stop order for robbery. Officers had a motel employee call Lynch’s room and request that he respond to the office. When Lynch arrived at the office he was placed under arrest for his numerous outstanding warrants.
Officers also contacted two women who were in the motel room. One of them had the three firearms in her purse.
Under federal statutes, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lynch has two prior felony convictions for assault on a law enforcement officer, six prior felony convictions for tampering with a motor vehicle, three prior felony convictions for receiving stolen property, two prior felony convictions for possession of a controlled substance and prior felony convictions for stealing, leaving the scene of a motor vehicle accident, resisting arrest and resisting arrest by creating a substantial risk of death or serious injury.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdict to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, Aug. 24, 2015.
Under federal statutes, Lynch may be subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Iowa Railroad Safety SymposiumRead the Press Release
ANKENY, IOWA –Federal, state and local public safety agencies are meeting today at the Des Moines Area Community College-Ankeny Campus for an all-day Railroad Safety Symposium. The program is providing a national overview of rail transportation issues as well as railroad safety issues specific to Iowa. The first of its kind conference is hosted by Kevin W. Techau, U.S Attorney for the United States Attorney’s Office for the Northern District of Iowa.
Federal and State agencies participating as presenters include United States Attorney’s Office for the Northern District of Iowa, Federal Railroad Administration (FRA), Iowa Homeland Security & Emergency Management, Iowa DOT Office of Rail Transportation, and the Pipeline & Hazardous Materials Safety Administration (PHMSA). The purpose of the Symposium is to bring together members of agencies that work in all aspects of public safety at the federal, state and local level, to better understand and be better prepared to address safety challenges connected to railroad, and hazardous materials railroad transportation. The primary audience attending the meeting is comprised of Iowa law enforcement, Iowa fire fighters and Iowa county emergency management personnel.
Primary topics presented at the symposium include:
- Making clear what agency is responsible for monitoring and regulating railroad traffic in the United States and Iowa. Discussing Federal Railroad Administration’s and other federal/state agency responsibilities specific to railroads and railroad traffic.
- Describing how the Federal Railroad Administration & PHMSA conducts railroad inspections.
- Presenting an overview of prevention initiatives related to railroad derailments, train accidents, rail trespass, and sabotage for rail transportation.
- Detailing emergency preparation and incident management for rail transportation and to include response and recovery and environmental clean-up related to rail incidents.
- Discussing issues around rail trespass, railroad crossing safety, quiet zones and community livability issues.
United States Attorney Kevin W. Techau stated, “Safe and efficient rail transportation is vital to the day-to-day lives of all Iowans. The purpose of the Iowa Railroad Safety Symposium is to bring together federal, state and local level public safety officials to facilitate the best preparation possible for all of the safety challenges connected to railroad transportation and specifically rail hazardous materials transportation.”
“At the Federal Railroad Administration, safety is our number one priority,” said FRA Regional Administrator Steve Fender. “The 2015 Iowa Rail Safety Symposium offers us a great opportunity to underscore FRA's safety message, and we look forward to sharing information about our organization and developing lasting relationships with safety professionals in the State of Iowa.”
Iowa partners also weigh in on the importance and timeliness of the symposium. “With the shipment of hazardous cargo on the rise, it is more important than ever to work closely with all of our stakeholders,” said Iowa Department of Homeland Security and Emergency Management Director Mark Schouten. “Events such as this symposium help us to be better prepared to respond to protect life, safety, property and the environment, and to more quickly recover from any and all hazardous materials incidents.”
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Indian River County Resident Sentenced to 24 Years in Prison for Enticing Minors over the InternetRead the Press Release
An Indian River County resident was sentenced by U.S. District Judge Jose E. Martinez in Fort Pierce, Florida on August 25, 2015, to 24 years and 5 months in prison for enticing minors over the internet.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Deryl Loar, Sheriff, Indian River County Sheriff’s Office (IRCSO), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Jay Frederick Nagel, 26, of Indian River County, was sentenced to concurrent terms of 292 months’ imprisonment following his guilty plea to three counts of enticement of a minor, in violation of Title 18, United States Code, Section 2422(b). Following his term of imprisonment, the defendant will be placed on supervised release for 20 years and be required to register as a sex offender.
According to court records, Nagel created a Facebook account using the alias “Jonathan Langley” and purported to be between 21 and 23 years of age. In the fall of 2013, Nagel used Facebook’s private messaging service in order to communicate with 12 to 17 year old minor females in Indian River County. Search warrant records for Nagel’s Facebook account produced the message content data of the defendant’s communications with the minor victims. Nagel targeted emotionally vulnerable minors. Nagel would befriend, compliment and express his interest in the minors, over the internet. After establishing a connection with the minors over the internet, Nagel would meet the victims in person and on occasion provide them with alcohol or marijuana. Nagel also enticed the minors to engage in sexual acts with him at his place of employment, at his apartment, or at the victims’ residences.
Mr. Ferrer commended the investigative efforts of the Indian River County Sheriff’s Office and ICE-HSI for their work on this case. The case is being prosecuted by Special Assistant U.S. Attorney Ryan Butler.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Independence Man Indicted for Filling in Wetlands AreaRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was indicted by a federal grand jury today for violating the Clean Water Act by filling in a wetlands area near Shoal Creek at the River Bend Development site.
David Obermeyer, 60, of Independence, was charged in an indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Obermeyer operated earth-moving equipment and authorized and/or directed the placement of fill materials into wetlands adjacent to Shoal Creek and adjacent to the Missouri River in Jackson County, Mo., from Sept. 29, 2011, through Sept. 30, 2014.
According to the indictment, Obermeyer is developing the property but is not the property owner. Approximately 6.6 acres of wetlands east of the levee was filled without authorization. Obermeyer had not applied for, and had not been issued, a permit for this activity.
On July 3, 2013, the U.S. Army Corps of Engineers issued a violation notice and cease and desist order to Obermeyer. The order stated the grading, excavation, and placement of fill material in wetlands east (riverward) of the existing levee was done without authorization and might be referred to EPA for civil or criminal enforcement action. The letter further stated Obermeyer and others involved were “hereby directed to cease and desist all unauthorized work in Corps jurisdiction.”
A federal agent, while hand-delivering the cease and desist notice to Obermeyer, observed trucks dumping fill material at the site. Obermeyer denied the trucks were dumping material east of the levee. On March 10, 2014, EPA Criminal Investigation Divison special agents conducted surveillance at the site, the indictment says, and saw trucks entering the site with loads of dirt and debris and exiting after emptying the loads. They allegedly saw trucks dumping material and a Bobcat pushing the piles of material over the edge of the fill area. The activities allegedly occurred on the east side of the levee in the wetlands area.
During the morning of March 11, 2014, an EPA-CID special agent conducted surveillance at the site and, in less than four hours, allegedly observed trucks bringing debris into the site 23 times. On June 5, 2014, the EPA issued an administrative compliance order to Obermeyer requiring him to immediately cease placing fill material into the wetlands and submit a work plan addressing the removal of the fill.
According to the indictment, investigators observed dumping continuing at the site in August and September 2014. On one day in September 2014, for example, 15 trucks allegedly dumped material at the site. According to the indictment, Google Earth aerial photographs of the site corroborate the violations documented by investigators. The pictures, say the indictment, show the expansion of unauthorized fill activities in the wetland area east of the levee over time.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Environmental Protection Agency Criminal Investigation Division and the Environment and Natural Resources Division of the Department of Justice.
Honduran Man Indicted for Knowingly Transporting Illegal Aliens in U.S.Read the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Honduran man on charges he knowingly transported illegal aliens within the United States for personal financial gain, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Raymond R. Parmer Jr. of the Department of Homeland Security's Immigration and Customs Enforcement Agency.
A four-count indictment filed in U.S. District Court charges JULIO ALBERTO BALDARES-GARCIA, 23, with transporting four individuals through Jefferson County on Aug. 5 who he knew were in the United States illegally. According to the indictment, Baldares-Garcia was transporting the individuals for private financial gain.
The maximum penalty for alien smuggling is 10 years in prison and a $250,000 fine.
ICE investigated the case, which the U.S. Attorney's Office for the Northern District of Alabama is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Holyoke Man Sentenced to 11 Years in Prison for Distributing HeroinRead the Press Release
BOSTON – A Holyoke man was sentenced today in U.S. District Court in Springfield for distributing heroin at a strip mall in Holyoke and outside a bank in Springfield.
Luzander Montoya, 29, was sentenced by U.S. District Judge Timothy S. Hillman to 11 years in prison and four years of supervised release. In April 2015, Montoya was convicted following a four-day jury trial of possession with intent to distribute and distribution of heroin on three separate occasions in 2012.
Montoya was caught on video selling heroin three times to a cooperating witness in August and September 2012. During the third deal, Montoya exchanged 200 bags of heroin for $750 in cash. Montoya did the deal in his car as his young child sat in a car seat behind him.
U.S. Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Deepika Bains Shukla and Kevin O’Regan of Ortiz’s Springfield Branch Office.
Heroin User Sentenced to Incarceration for Straw Purchasing HandgunsRead the Press Release
WILMINGTON, Del. – United States District Court Judge Richard G. Andrews sentenced Michael Nolting, age 25, of Newark, Delaware to 36 months in prison followed by three years of supervised release. Nolting had pled guilty to making false statements to a licensed firearms dealer in the acquisition of a firearm.
The sentence was announced by United States Attorney for the District of Delaware Charles M. Oberly, III and William McMullan, Special Agent in Charge of the Baltimore Office of the Bureau of Alcohol, Tobacco and Firearms (ATF).
According to statements made at the sentencing hearing and documents filed in court, over an approximate four week period beginning in July 2014, Nolting, then a heroin user, straw purchased a total of five semi-automatic pistols for his several heroin suppliers, falsely denying that he was a drug user, and fraudulently purporting that he was the actual purchaser, when, in fact, he knew the drug dealers were the actual purchasers.
A “straw purchase” occurs when an individual who is not eligible to lawfully purchase a firearm solicits another person to conduct the transaction. Among other requirements, ATF Form 4473 required Nolting to certify that he was the actual buyer of the firearms and that he was not using any unlawful drugs.
“It is a violation of federal law to make a false statement in order to purchase a firearm. It is even more egregious to supply illegally obtained firearms to drug dealers,” said U.S. Attorney Charles M. Oberly, III.
William McMullan, Special Agent in Charge of the Baltimore Office of the Bureau of Alcohol, Tobacco and Firearms said, “ATF’s primary mission is to target violent criminals who illegally possess firearms as well as those who help to arm criminals. This case is an example of ATF’s commitment to identifying individuals who illegally purchase firearms for prohibited persons and then holding them accountable for their actions.”
This case was prosecuted by Edmond Falgowski and investigated by the special agents and task force officers of the Wilmington Office of the ATF.
Hartford Man Sentenced to 54 Months in Federal Prison for Role in Coast-to-Coast Drug Trafficking RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERNEST OPRECHT, 32, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 54 months of imprisonment, followed by four years of supervised release, for his role in a narcotics trafficking ring.
This matter stems from a joint law enforcement investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Drug Enforcement Administration into a drug trafficking organization that involved individuals in California using the U.S. Mail and commercial carriers to send large quantities of cocaine to co-conspirators in the Hartford area who sold the narcotics for profit.
According to court documents and statements made in court, Joseph Miller of Los Angeles, formerly of East Hartford, sent kilogram parcels of cocaine from California to Luther Nance, Jermaine Jenkins and their associates in Connecticut. Nance, Jenkins and their associates then distributed the cocaine in Connecticut, or converted the cocaine into crack for street sale. The investigation revealed that certain co-conspirators traveled to California with a large amount of cash to finance the purchase of cocaine. Co-conspirators also made numerous cash deposits into local bank accounts, as well as wire transfers. The cash deposits were made at several branches of the same bank in the Hartford area in amounts of less than $10,000 in order to evade the bank’s currency transaction reporting requirements.
OPRECHT assisted Nance’s and Jenkins’ narcotics trafficking activities. On three occasions, OPRECHT traveled to California to deliver drug proceeds to Miller, to check the quality of cocaine that Miller was supplying, and to oversee Miller’s shipment of the cocaine parcels back to Connecticut. Certain parcels containing cocaine were shipped to OPRECHT in Connecticut, and also to OPRECHT’s girlfriend’s house and to the residence of one of OPRECHT’s family members.
In addition, OPRECHT drove to New York with Nance to obtain narcotics, helped Nance package heroin, and traveled to Vermont with another member of the conspiracy who was purportedly selling crack cocaine in Vermont.
On June 27, 2013, a federal grand jury returned a 51-count superseding indictment charging Nance and 14 other individuals with narcotics conspiracy and related offenses stemming from the sale of crack cocaine and heroin in several communities throughout Connecticut. On November 14, 2013, a federal grand jury returned a two-count indictment charging OPRECHT, Nance, Jenkins, Miller and four other defendants.
On October 7, 2014, JENKINS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine, and one count of conspiracy to commit money laundering.
Miller, Nance and Jenkins have pleaded guilty. On February 3, 2015, Jenkins was sentenced to 72 months of imprisonment. Miller and Nance await sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation Division, the U.S. Marshals Service, the Office of the Chief State’s Attorney, the State’s Attorney for the Judicial District of Hartford, and the Hartford, Willimantic, East Hartford, Enfield and Middletown Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Hardy County, WV man charged with manufacturing methamphetamineRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury returned an indictment today charging Johnny Biggs, 36, of Moorefield, West Virginia, with methamphetamine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Biggs allegedly attempted to manufacture methamphetamine in May 2015 in Hardy County, West Virginia. In May and June 2015, Biggs was discovered in Hardy and Pendleton Counties in possession of materials commonly used to manufacture methamphetamine. These materials included bottles, jars, coffee filters, drain cleaner, lithium batteries, cold medicine, acid, a cold pack, and a hot plate. Following an investigation by the West Virginia State Police, Biggs is charged with: • One count of “Attempted Manufacture of Methamphetamine,” for which he faces up to 20 years in prison and a fine of up to $1,000,000, and
• Two counts of “Possession of Material used in the Manufacture of Methamphetamine.” He faces up to 10 years in prison and a fine of up to $250,000 on each count.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Jury Indicts Local Daycare Worker for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – The daycare worked arrested earlier this month on allegations she produced child pornography has been indicted by a federal grand jury, announced U.S. Attorney Kenneth Magidson. Christina Cortez, 38, of Corpus Christi, allegedly produced the graphic images while working at a daycare facility in Corpus Christi and further distributed them to Matthew Harbin, 29, of Brownsville. Harbin was also indicted.
Cortez was ordered into custody following a detention hearing held after the filing of a criminal complaint. At that hearing, the court found probable cause she committed the crimes alleged and a danger to the community and ordered she be detained pending further criminal proceedings. Harbin was already in state custody on related charges and has been transferred to federal custody. Both are expected to make an initial appearance on the indictment returned today in the near future.
The indictment charges both with production of child pornography.
According to the criminal complaint, the case began after Harbin was identified as providing images to an undercover officer in England. Using the email address [email protected], Harbin allegedly first provided three photos of a child clothed and not sexually posed, but that appeared to be taken at a daycare facility. The complaint alleges that he stated he had more pictures, wanted to trade and asked the person if they had a daughter and how young they were “in to.” Harbin later allegedly sent five more pictures of what appears to be the same female child, but that were sexually explicit in nature. One image depicts the child laying down on a blue mat with her dress lifted and her lower body exposed, according to the charges. Other images allegedly depict an adult female’s hand making contact with a child’s private area.
Further investigation revealed Harbin had previously received the images from Cortez in July 2014, according to the complaint. In their communications, Cortez claimed to work at a daycare facility where she allegedly obtained the images. Cortez allegedly sent images of the same female child involved in sexually explicit conduct. The child’s genitals appear to be the focus of all three of the aforementioned images, according to the complaint, one of which includes the child fondling herself.
In their communications, both Harbin and Cortez allegedly indicate a desire to engage with children. During one conversation, the complaint alleges Cortez told Harbin “I would love to watch us with her. 2 & half.”
If convictedboth face a minimum of 15 and up to 30 years in federal prison
The charges are the result of an investigation by Homeland Security Investigations and the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Four Men Named in Federal Child Pornography Indictment that Alleges Filming of 15-Year-Old Girl Engaged in Sex ActsRead the Press Release
LOS ANGELES – Three men were taken into custody this morning after being indicted by a federal grand jury on a host of federal charges related to the sexual exploitation of a 15-year-old girl. A fourth defendant named in the indictment is expected to be taken into custody later today.
The indictment alleges that the defendants participated in the production of child pornography involving the 15-year-old victim. The three arrested this morning are:
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Darrius Marques Sutton, also known as “Biz,” 25, of Compton;
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Darius Dajohn Burks, 26, of Los Angeles;
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Edwin Donnell Franklin, 28, of Bellflower.
These defendants are expected to be arraigned on the federal charges this afternoon in United States District Court.
The fourth defendant – Leprinceton Dewon Burks, also known as “Dapper P” and “Pete Williams,” 31, of Carson – is expected to be taken into custody later this afternoon and to be arraigned tomorrow afternoon in federal court.
The indictment alleges four counts of conspiracy to produce child pornography. Those charges relate to four incidents:
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Sutton and Franklin are charged in a conspiracy to produce child pornography of the victim on July 18, 2011 in an incident in which both men “directed” and engaged in sex acts with the victim that were recorded;
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All four defendants are charged in a conspiracy count in which all four of them filmed the victim participating in various sex acts on July 25, 2011;
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Sutton and Darius Burks are charged in a third conspiracy in relation to an incident the night of August 16, 2011 in which they filmed “themselves and each other performing sexual acts on [the] intoxicated and unconscious [victim],” which included an act that involved an empty liquor bottle; and
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All four defendants are charged in a conspiracy to produce child pornography related to the filming of sexually explicit conduct involving the victim on August 20, 2011.
The indictment also alleges 12 substantive counts of producing child pornography involving the 15-year-old victim. Each of the four defendants is charged in at least two of these substantive counts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The child pornography production charges alleged in the first 16 counts of the indictment each carry a mandatory minimum penalty of 15 years in federal prison and a maximum sentence of 30 years in prison.
In addition, Sutton and Leprinceton Burks are each charged with one count of possession of child pornography, an offense that carries a potential penalty of 10 years in federal prison.
The indictment follows a state court prosecution of the men, who were convicted of charges that include conspiracy to pimp a minor, sexually assaulting an unconscious victim and statutory rape. They previously received sentences of up to four years and four months in state prison.
This case was investigated by the FBI’s Innocence Lost Task Force and the Los Angeles Police Department Detective Support and Vice Division, Human Trafficking Unit.
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Fort Bend County Man Indicted on Child Pornography ChargesRead the Press Release
HOUSTON – A 63-year-old Missouri City man has been indicted on federal child pornography charges, announced U.S. Attorney Kenneth Magidson. The three-count indictment charges Louis Clifford Smith Jr. with one count each of receipt, access with intent to view and possession of child pornography.
The indictment was returned today. He is expected to make his initial appearance before a U.S. magistrate judge in the near future.
Court documents allege that Smith came to the attention of law enforcement after investigators found evidence he was accessing files from a website known to contain child pornography. According to the criminal complaint originally filed in the case, a search warrant was executed on Smith’s Missouri City residence on July 31, 2015, at which investigators found a voluminous number of images of prepubescent girls with their genitals lasciviously displayed and being penetrated in a variety of ways.
Smith appeared in court at a hearing on the initial charges on Aug. 6, 2015. At that time, the government presented evidence that he had more than 60,000 images and more than 4,500 videos of child pornography.
If convicted, Smith faces a minimum of five and up to 20 years imprisonment for the receipt of child pornography, while the other two charges carry a possible term of up to 10 years in federal prison.
The charges are the result of an investigation by the FBI and the Pearland Police Department.
This case, prosecuted by Assistant U.S. Attorney Sherri Zack and Kimberly Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former TSA Agent Indicted on Multiple Counts Related to Child PornographyRead the Press Release
HOUSTON – A federal grand jury has returned a four-count indictment against as 27-year-old man from the North Houston area in relation to the sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Christopher Lynn Persky is charged with one count each of production, distribution, receipt and possession of child pornography.
The indictment was returned today. Persky is expected to make his initial appearance before a U.S. magistrate judge in the near future.
According to the criminal complaint originally filed in the case, Persky first came to the attention of law enforcement after an individual identified online as CHRISPYTWEAK had sent images of child erotica to an undercover agent using the chat feature on a known child pornography site. At that time, Persky allegedly provided his full name and further claimed to work for TSA, according to the criminal complaint. He is no longer employed by TSA.
Court documents allege that Persky took sexually explicit photographs of a minor male under the age of five. According to the complaint, Persky took the images and was to send them to another individual with whom he was communicating in exchange for more images of child pornography.
The criminal complaint further alleges that while at his previous residence in Spring, Persky allegedly took partially nude images of a minor relative’s female friend while she was sleeping. Persky also allegedly took photos of a female relative as she was getting out of the shower to show to his online child pornography community.
If convicted, Persky faces a minimum of 15 and up to 30 years in federal prison for the production of child pornography. He further faces a minimum of five and up to 20 years imprisonment for the distribution and receipt allegations, while the possession of child pornography carries a possible punishment of up to 10 years in federal prison.
The charges are the result of an investigation by Homeland Security Investigations.
This case, prosecuted by Assistant U.S. Attorneys Sherri Zack and Kimberly Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Rancho Cordova Executive Sentenced to 4 Years in Prison for Securities FraudRead the Press Release
SACRAMENTO, Calif. —Matthew Sarad, 42, of Bakersfield, was sentenced today to four years in prison for securities fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sarad lived in Folsom and was the founder and chief executive officer of Rancho Cordova-based Telomolecular Corporation. It purported to be a biotechnology startup company and claimed to have developed nanoparticle technology that could eradicate cancer and treat other age-related diseases. Between November 2005 and July 2008, Sarad solicited investors nationwide, offering them stock in Telomolecular. In selling the Telomolecular stock, Sarad made untrue statements, such as telling investors that the company believed its cancer curing products would complete clinical trials, obtain requisite government approval and make it to the market in less than three years. He also claimed Telomolecular had a deep management team with experience taking companies public. Sarad collected about $6.7 million from approximately 400 investors. Telomolecular never developed a marketable cancer-curing product, never conducted any clinical trials, never had a deep management team with experience taking companies public, and never went public.
Between January 2009 and December 2009, Sarad also owned a Folsom-based company called Sun Nanosystems. It purported to install solar energy systems for residential and commercial customers. It claimed to have developed nanoparticle technology that vastly increased the efficiency of solar panels. In selling the solar panels, Sarad falsely claimed that Sun Nanosystems worked with state-of-the-art proprietary technology that could increase the efficiency of conventional solar panels by as much as 50 percent. He claimed that Sun Nanosystems had a great deal of experience installing solar panels and had satisfied past customers. Sarad collected approximately $300,000 from customers but failed to complete installation of any solar panels.
In sentencing, United States District Judge Kimberly J. Mueller found that Sarad had engaged in a “pattern of purveying false information” and that a “significant sentence is warranted.”
“The FBI is committed to identifying and investigating corporate fraud cases and encourage those who have information about such illegal activity, wherever it may be found, to come forward,” said Supervisory Special Agent David Hanzal of the FBI's Sacramento field office. “Approximately 400 people fell victim to Sarad’s inaccurate claims and false promises regarding his company’s investment opportunities and products, resulting in significant and unacceptable losses.”
This case was the product of an extensive investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Lee S. Bickley and Christopher Hales prosecuted the case.
Former Ohio Deputy Treasurer Extradited from Pakistan to Serve 15-Year Sentence for BriberyRead the Press Release
A former deputy treasurer of Ohio has been extradited from Pakistan to the United States to serve a 15-year prison sentence for his role in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, Attorney General Mike DeWine of Ohio and U.S. Marshal Peter C. Tobin of the Southern District of Ohio made the announcement.
Amer Ahmad, 40, of Chicago, pleaded guilty in December 2013 to federal program bribery and conspiracy to commit federal program bribery, honest services wire fraud and money laundering. Following his guilty plea, Ahmad fled the United States and was arrested by Pakistani authorities while attempting to illegally enter that country. He has remained in custody and the U.S. government requested his extradition. On Dec. 1, 2014, Ahmad was sentenced in abstentia by U.S. District Judge Michael H. Watson of the Southern District of Ohio to 15 years in prison and ordered to forfeit $3.2 million in illicit proceeds.
A remand hearing has been scheduled for 10:00 a.m. on Friday, August 28, before U.S. District Judge Watson.
According to admissions in connection with his guilty plea, from January 2009 through January 2011, Ahmad used his position as deputy treasurer to direct official state of Ohio business to securities broker Douglas E. Hampton in return for bribes. Ahmad and Chicago businessman Joseph Chiavaroli concealed the payments they received from Hampton by passing them through the accounts of their landscaping business. Hampton also funneled more than $123,000 to Mohammed Noure Alo, an attorney and lobbyist who was Ahmad’s close personal friend and business associate. Over the course of the scheme, Hampton paid in excess of $500,000 in bribes and received, in exchange, approximately $3.2 million in commissions for 360 securities trades on behalf of the Ohio Treasurer’s Office.
In November 2014, Hampton and Alo were sentenced to 45 months and 48 months in prison, respectively, for their roles in the scheme. Chiavaroli was sentenced in December 2014 to 18 months in prison.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The U.S. Marshals Service joined the investigation after Ahmad fled the United States. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The case is being prosecuted by Trial Attorneys Eric L. Gibson and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio.
Former Ohio Deputy Treasurer Extradited from Pakistan to Serve 15-Year Sentence for BriberyRead the Press Release
WASHINGTON – A former Deputy Treasurer of Ohio has been extradited from Pakistan to the United States to serve a 15-year prison sentence for his role in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, Attorney General Mike DeWine of Ohio and U.S. Marshal Peter C. Tobin of the Southern District of Ohio made the announcement.
Amer Ahmad, 40, of Chicago, pleaded guilty in December 2013 to federal program bribery and conspiracy to commit federal program bribery, honest services wire fraud, and money laundering. Following his guilty plea, Ahmad fled the United States and was arrested by Pakistan authorities while attempting to illegally enter that country. He has remained in custody and the U.S. government requested his extradition. On Dec. 1, 2014, Ahmad was sentenced in abstentia by U.S. District Judge Michael H. Watson of the Southern District of Ohio to 15 years in prison and ordered to forfeit $3.2 million in illicit proceeds.
“Today’s extradition demonstrates the never-ceasing efforts by investigators at home and abroad to bring to justice those who abuse positions of power to defraud,” said First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio.
“Amer Ahmad abused the public’s trust and ran halfway across the globe to hide,” stated FBI Cincinnati Special Agent in Charge Angela L. Byers. “Tenacious FBI Special Agents and investigators continued to pursue Ahmad until he could be returned to face justice. Now he will have plenty of time to reflect on his corrupt actions while serving out his lengthy prison sentence.”
“Deputy U.S. Marshals and FBI Special Agents worked hand in hand to track fugitive Ahmad and return him to justice,” said Pete Tobin, U.S. Marshal, Southern District of Ohio. “If you violate the trust of the American public and the laws of the land, we will pursue you wherever you may be found.”
According to admissions in connection with his guilty plea, from January 2009 through January 2011, Ahmad used his position as Deputy Treasurer to direct official state of Ohio business to securities broker Douglas E. Hampton in return for bribes. Ahmad and Chicago businessman Joseph Chiavaroli concealed the payments received from Hampton by passing them through the accounts of their landscaping business. Hampton also funneled more than $123,000 to Mohammed Noure Alo, an attorney and lobbyist who was Ahmad’s close personal friend and business associate. Over the course of the scheme, Hampton paid in excess of $500,000 in bribes and received, in exchange, approximately $3.2 million in commissions for 360 securities trades on behalf of the Ohio Treasurer’s Office.
Hampton and Alo were sentenced in November 2014 to 45 months in prison and 48 months in prison, respectively, for their roles in the scheme. Chiavaroli was sentenced in December 2014 to 18 months in prison.
A remand hearing is being scheduled to be held at 10am on Friday in front of U.S. District Court Judge Michael H. Watson.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The U.S. Marshals Service joined the investigation after Ahmad fled the United States. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The case is being prosecuted by Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio and Trial Attorneys Eric L. Gibson and Menaka Kalaskar of the Criminal Division’s Public Integrity Section.