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Wednesday 10 June 2015
Luxury Car and Boat Seized from Former Head Pharmacist of New England Compounding CenterRead the Press Release
BOSTON – A 2011 BMW M3 automobile and a 2010 luxury boat owned by Barry J. Cadden, former shareholder and head pharmacist of New England Compounding Center (NECC), were seized by federal agents after warrants for the assets were issued by the U.S. District Court in Boston.
The vehicle was seized yesterday from outside Cadden’s residence in Wrentham, Mass., and the boat was seized in North Kingston, R.I. today after both were identified in the indictment against Cadden as forfeitable property.
In December 2014, Cadden was charged in a 131-count indictment related to the 2012 fungal meningitis outbreak caused by contaminated vials of preservative-free methylprednisolone acetate that NECC manufactured. Specifically, Cadden is charged with 25 acts of second-degree murder in Florida, Indiana, Maryland, Michigan, North Carolina, Tennessee, and Virginia, among other violations.
In addition, on May 22, 2015, the U.S. Attorney’s Office filed a civil forfeiture complaint against funds owned by Cadden and his wife, as well as those owned by Carla and Douglas A. Conigliaro. Carla Conigliaro, former shareholder of NECC, and her husband, Douglas Conigliaro, are also charged in the indictment with transferring millions of dollars the same month that NECC surrendered its pharmacy license and one month prior to NECC’s petition for bankruptcy in December 2012. The Conigliaros also allegedly transferred millions of dollars more after the bankruptcy court issued two orders prohibiting NECC shareholders from transferring any assets. The assets named in the civil forfeiture complaint, which exceed $18 million, were seized pursuant to seizure warrants issued in December 2014.
United States Attorney Carmen M. Ortiz; Jeffrey Ebersol, Acting Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts; and Jamie A. Hainsworth, U.S. Marshal of the U.S. Marshals Service, District of Rhode Island, made the announcement today. The forfeiture case is being prosecuted by Assistant U.S. Attorney Veronica M. Lei of Ortiz’s Asset Forfeiture Unit. The criminal investigation is being conducted by the Food and Drug Administration, Office of Criminal Investigations and the Federal Bureau of Investigation with assistance from the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; Department of Veterans Affairs, Office of Inspector General; and U.S. Postal Inspection Service. The criminal case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit, and Justice Department Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch.
Lincoln Couple Sentenced in Connection with Wire Fraud SchemeRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Court Judge John M. Gerrard sentenced Scott Usher, age 46, and Robin Usher, age 53, both of Lincoln, Nebraska, in connection with a wire fraud scheme. Scott Usher was sentenced on June 9, 2015, to 84 months in prison and ordered to pay restitution in the amount of $519,230.02. Robin Usher was sentenced on June 10, 2015, to five years’ probation and ordered to pay restitution in the amount of $85,878.55. As conditions of her probation Robin Usher is required to submit to 8 months of home confinement with location monitoring and 12 consecutive weekends of confinement in a detention facility.
Scott and Robin Usher, husband and wife, were convicted in connection with a wire fraud scheme orchestrated by Scott Usher. Scott Usher was convicted of wire fraud as a result of his taking money from private lenders and investors purportedly for the purpose of developing new technologies which could be sold to large companies and governments. Among the numerous technologies Scott Usher represented he had developed were windmills that could operate with assistance from solar energy and designs that could inexpensively desalinate seawater. Scott Usher continually represented he had been in negotiations with companies and private individuals and that large transactions were about to close which would yield millions, even billions, of dollars in profit. He also represented he had been in personal conversations with prominent people ranging from the President and Vice-President of the United States to actor Matt Damon all of whom were supposedly interested in his inventions. All of Mr. Usher’s representations, in fact, were lies. He had not developed the technologies he said he had created, he had not been in negotiations with any companies or prominent individuals and there were no lucrative deals about to close. Scott Usher had simply made those representations to induce lenders and investors, primarily from the Lincoln area, to give him money which he used to support himself.
Robin Usher was convicted of being an accessory after the fact to wire fraud. The Ushers had travelled to Hawaii, using funds supplied by lenders and investors, purportedly for the purpose of meeting with representatives of the Chinese government. Scott Usher had previously represented that the Chinese government was close to consummating a deal with him to purchase the right to use his desalinization technologies. The deal was represented to be worth billions of dollars. Mr. Usher’s representations were entirely fabricated. Following the trip to Hawaii, Scott and Robin Usher attended dinner parties in Lincoln restaurants where Scott Usher told investors and lenders that his meetings with the Chinese had gone well. Robin Usher never contradicted Scott Usher or told the investors and lenders that no such meetings had taken place. Thereafter, an additional $85,878.55 in monies were provided by investors and lenders to Scott Usher. Robin Usher’s failure to disclose the truth about the trip to the Hawaii was, in part, responsible for those additional losses. Scott Usher was immediately remanded to the custody of the United States Marshal following sentencing.
This case was investigated by the Federal Bureau of Investigation and the Lincoln Police Department.
Latrobe Woman Facing Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Latrobe, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud and obtained controlled substances through fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on June 9 and unsealed today, named Kari Richards, 28.
According to the indictment, Richards received health care benefits through Highmark and, in an attempt to obtain fraudulently various pain medications, caused Highmark to pay more than $600,000 in connection with claims in which she sought treatment over a 16-month period from more than 100 hospitals in eleven states on more than 300 occasions. Through this behavior, Richards obtained approximately 190 prescriptions for pain medications, including prescriptions for Schedule II controlled substances Oxycodone-Acetaminophen, Hydrocodone-Acetaminophen, Hydrocodone, and Oxycodone. As part of the scheme, Ms. Richards falsely represented the circumstances of injuries, which were mainly shoulder dislocations that she intentionally caused. She also misrepresented the medications that she received and her medical history.
The law provides for a maximum total sentence of 14 years of imprisonment, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment: Wichita Man Tried to Broker a Deal for Purchase of a Massage Parlor That Would Offer Sex ServicesRead the Press Release
KANSAS CITY, KAN. - A federal grand jury indictment filed Wednesday alleges a Wichita man tried to broker a deal for the purchase of a massager parlor that would offer sex services, U.S. Attorney Barry Grissom.
Kay Tee, 50, Wichita, Kan., is charged with one count of attempting to entice a person to travel across state lines to engage in prostitution, one count of using a telephone in furtherance of prostitution, two counts of wire fraud and one count of money laundering.
According to court records, Tee was arrested May 28 at the airport in Wichita when he drove there to pick up a person he believed was buying a Wichita massage parlor. In fact, the person Tee had talked with many times on the phone was one of two undercover informants working with federal investigators.
It is alleged Tee tried to collect fees from both undercover informants – one posing as a buyer and the other as a seller – in return for helping to arrange the sale. He also offered to provide additional services including filing city paperwork and doing taxes for the massage parlor. It is alleged Tee talked with the agents about the fact employees of the massage parlor would be performing sex services for customers.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on the money laundering charge, a maximum penalty of five years and a fine up to $250,000 on the phone charge, and a maximum penalty of 20 years and a fine up to $250,000 on each of the three other counts. The Wichita Police Department and Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Houma Man Pleads Guilty to Participating in Fresno-Based Methamphetamine Distribution RingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MANUEL OMAR MINJAREZ, age 27, of Houma, pled guilty today to charges of conspiracy to distribute methamphetamine and having methamphetamine mailed to him from a Fresno, California.
According to court documents, this case arose out of an investigation into methamphetamine trafficking that was being conducted by agents of the Drug Enforcement Administration (DEA) and the United States Postal Inspection Service (USPIS) in Fresno during the summer of 2014. In July 2014, agents learned that members of a Fresno-based methamphetamine trafficking organization were mailing methamphetamine to a drug dealer in Houma. DEA agents and Postal Inspectors in Fresno coordinated with their counterparts in the New Orleans offices for the DEA and the USPIS to further investigate the Houma-based arm of this drug conspiracy. On July 18, 2014, postal Inspectors in Houma subsequently intercepted a package containing almost one pound of methamphetamine. With the assistance of the Louisiana State Police and the Terrebonne Narcotics Task Force, DEA agents and US Postal Inspectors determined that MINJAREZ was the intended recipient of the package.
As the investigation continued, DEA agents learned in July 2014, that MINJAREZ requested more methamphetamine to be mailed from the Fresno cell of this drug trafficking conspiracy. USPS Postal Inspectors also determined that on July 10, 2014, MINJAREZ had received another package of methamphetamine that weighed approximately one pound and eleven ounces. On July 30, 2014, MINJAREZ was arrested by a Texas Department of Public Safety Trooper in Sutton County, Texas. Through the assistance of Texas state authorities, MINJAREZ was removed to federal custody to face the federal indictment in New Orleans to which he pleaded guilty today.
MINJAREZ pleaded guilty as charged to all three counts of the indictment. As to Count 1, conspiracy to distribute and to possess with the intent to distribute 500 grams or more of methamphetamine, MINJAREZ faces a minimum of 10 years in prison and a maximum of life imprisonment, a $10,000,00 fine, and at least five years of supervised release. Count 2 and Count 3 charged MINJAREZ with the use of a phone and the mail in furtherance of a drug trafficking conspiracy. As to Counts 2 and 3, MINJAREZ faces a maximum of four years of imprisonment, a $250,000 fine, and up to one year of supervised release. U.S. District Judge Ivan L.R. Lemelle set sentencing for September 23, 2015.
U.S. Attorney Polite praised the coordinated investigation between the Fresno offices for the DEA and USPIS, the DEA New Orleans Office, the USPIS New Orleans Office, the Louisiana State Police, and the Terrebonne Narcotics Task Force in investigating this matter. U.S. Attorney Polite extended his thanks to the U.S. Attorney’s Office for the Eastern District of California, theTexas Department of Public Safety, the Sutton County, Texas, Sheriff’s Office, the District Attorney’s Office for the Texas 112th Judicial District, and the DEA Office in Del Rio, Texas, for their assistance in prosecuting this case. Assistant United States Attorneys Matthew R. Payne and Theodore R. Carter, III, are in charge of the prosecution.
Manuel Omar Minjarez Factual Basis (1.77 MB)
Honduran Man Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDIN ANTONIO PLEITES-ZAMORA, age 24, a citizen of Honduras pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien.
According to the Indictment, PLEITES-ZAMORA reentered the United States on or about November 4, 2014, after having been previously removed on May 25, 2012.
PLEITES-ZAMORA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for July 15, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, United States Border Patrol in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Edin Antonio Pleites-Zamora Factual Basis (1.24 MB)
Harrisburg Man Indicted on Heroin Trafficking ChargesRead the Press Release
HARRISBURG - A Harrisburg man has been indicted by a federal grand jury in Harrisburg on multiple charges involving the unlawful distribution of heroin.
United States Attorney Peter Smith announced that Joshua Ingram, 20, of Harrisburg, was charged in a five count indictment with unlawfully distributing heroin on three specific occasions, possessing heroin with the intent to distribute on another occasion, and with conspiring with persons known and unknown to the grand jury to distribute heroin since at least January 2014.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Harrisburg Police Department, Dauphin County Drug Task Force and the Dauphin County Probation Office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Federally Indicted for Selling HeroinRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Armani V. Carson, age 21, of Harrisburg, Pennsylvania was indicted by a federal grand jury in Harrisburg, Pennsylvania. The indictment charges Carson with possessing a firearm by a convicted felon, possessing a firearm in furtherance of drug trafficking, and distribution and possession with intent to distribute a controlled substance.
According to United States Attorney Peter Smith, the charges against Carson are a result of allegations that Carson sold heroin on the streets of Harrisburg, PA in December 2014 and January 2015. The Pennsylvania State Police seized a stolen firearm and additional heroin from Carson’s home in the 1900 block of Bellevue Road on January 6, 2015.
This case is being investigated by the Drug Enforcement Administration and the Pennsylvania State Police. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is a lifetime of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greene County Man Pleads Guilty to Conspiracy to Avoid Paying $585,000 in Federal TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Greene County, Mo., man has pleaded guilty in federal court to his role in assisting co-conspirators to avoid paying $585,000 they owed in federal taxes.
Alton Louis Vaughn, Sr., 58, of Greene County, pleaded guilty before U.S. District Judge M. Douglas Harpool on Tuesday, June 9, 2015, to participating in a conspiracy from February 2009 to Sept. 30, 2014, to defraud the United States by impeding the lawful government functions of the Internal Revenue Service in the ascertainment, computation, assessment, and collection of federal taxes.
Vaughn, who is self-employed, derived a portion of his income from assisting in the preparation of federal income tax returns, advising taxpayers regarding their dealings with the IRS, and representing others in their dealings with the IRS.
Vaughn admitted that he assisted a co-conspirator in an attempt to avoid paying taxes on approximately $4.7 million in business receipts. Vaughn advised and assisted the co-conspirator’s attempts to avoid IRS efforts to ascertain, compute, assess, and collect federal income taxes, and sometimes acted as his representative in dealings with the IRS.
Vaughn admitted that he attempted to impede a federal criminal investigation by falsely reporting to the Treasury Inspector General for Tax Administration that an IRS revenue officer and an IRS criminal investigator had coerced, intimidated and threatened this co-conspirator. Vaughn also attempted to impede a federal grand jury in its investigation by refusing to comply with federal grand jury subpoenas for tax and business records and by sending correspondence to the U.S. Attorney’s Office falsely stating that an IRS revenue officer had personally seized and collected documents. Vaughn admitted that he falsely testified before the grand jury that an IRS revenue officer had seized those records.
Vaughn further attempted to impede a federal grand jury in its investigation by counseling another person to refuse to testify before the grand jury, and by providing her with a written statement (which contained an inaccurate statement of the law) to read to the grand jury in lieu of complying with her legal obligation to testify.
Vaughn also admitted that he assisted another couple to impede IRS efforts to collect the taxes the couple owed. They refused to comply with IRS requests and summonses for documents and records. Instead, they presented an explanation they knew to be false when they claimed their documents and records had already been provided to an IRS revenue officer. Vaughn told them that, because this IRS revenue officer had died, there was no way the IRS could prove the statement was untrue. This client also testified in a summons enforcement hearing in federal court and falsely stated that he had provided all of the personal tax records to the IRS revenue officer.
Additionally, while not admitting the allegations, Vaughn acknowledges the government could prove that he engaged in a scheme to defraud another taxpayer, who was his client. Under the terms of the plea agreement, the government will not separately charge Vaughn for this conduct, and Vaughn must pay the client $3,595 in restitution, which is the amount Vaughn received from the client as compensation for his services.
Under the terms of the plea agreement, Vaughn must pay the government approximately $585,710 in restitution, which is the amount of taxes he attempted to aid his co-conspirators to avoid.
Under federal statutes, Vaughn is subject to a sentence of up to five years 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 Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration.
Former Youth Minister Pleads Guilty to Child Enticement OffenseRead the Press Release
DALLAS — A former youth minister in Garland, Texas, pleaded guilty yesterday to a federal child enticement offense, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Derek Hutter, 37, appeared before U.S. Magistrate Judge David L. Horan and pleaded guilty to a superseding information charging one count of enticement of a minor. He faces a statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. Hutter has been in custody since his arrest in December 2014. A sentencing date was not set.
According to plea documents filed in the case, Hutter worked as a youth minister at the South Garland Baptist Church. He used the Internet, his cell phone and email, as well as person-to-person contact at youth group, to communicate with Jane Doe, a minor girl in his youth group. During these conversations, he convinced Jane Doe to have a sexual relationship with him. Hutter sexually assaulted Jane Doe on several occasions between January 1, 2014, through approximately September 15, 2014.
In addition, according to the filed factual resume, Hutter emailed Jane Doe and asked that she send him explicit and lewd photos of herself.
Hutter admitted that he knew Jane Doe was between age 13 and 14.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Sachse Police Department, the Garland Police Department and the FBI investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Former Owner of Madison Wholesale Distributor Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
Scott Lumley, 47, of Hendersonville, Tennessee, pleaded guilty yesterday to wire fraud and money laundering, announced David Rivera, United States Attorney for the Middle District of Tennessee. Lumley was the owner of Bluebuyyou, a wholesale distributor company based in Madison, Tennessee.
During a hearing before U.S. District Court Chief Judge Kevin H. Sharp, Lumley admitted making misrepresentations to a customer to which Bluebuyyou had sold a large quantity of Red Bull energy drink for $176,000. Lumley acknowledged that he falsely told the customer that Red Bull had been shipped to an agreed-upon location in Texas and that he provided forged bills of lading. Bluebuyyou, in fact, had not shipped any Red Bull to the customer and did not possess a sufficient quantity of the product to satisfy the sale. Lumley also admitted that a Bluebuyyou employee pretended to be a trucking dispatcher involved in the shipment of Red Bull and falsely reported to the customer that Red Bull had been shipped to Texas.
Lumley faces up to 20 years in prison in connection with his wire fraud conviction and up to 10 years in prison in connection with his money laundering conviction. He will be sentenced by Judge Sharp on September 18, 2015. Lumley has agreed to pay full restitution to the defrauded customer.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service- Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former Deputy Sheriff Sentenced to 13 Years for Mail Fraud and Using Fire to Commit a Federal FelonyRead the Press Release
A former deputy sheriff and volunteer firefighter who submitted a fraudulent insurance claim after deliberately setting fire to his vacant home was sentenced today to 13 years in federal prison.
James Marvin Plower, age 50, from Olin, Iowa, received the prison term after a February 20, 2015, guilty plea to one count of mail fraud and one count of using fire to commit a federal felony.
At his guilty plea hearing, Plower admitted that, between about July 2013 and August 2014, he made up a scheme to defraud his insurance company. Plower admitted that, as part of the scheme, he deliberately set fire to his vacant home in Martelle, Iowa, and then submitted an insurance claim in which he falsely claimed the fire was accidental.
Plower was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Plower was sentenced to 13 years’ imprisonment to be followed by 3 years’ supervised release. He was ordered to make $152,874.58 in restitution to the victim insurance company. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Iowa Division of Criminal Investigation, the United States Postal Inspection Service, the Iowa State Fire Marshal Division, and the Jones County Sheriff’s Department.
Plower was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-12-LRR.
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Federal Grand Jury Indicts Andrew Steven Romero for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – A federal grand jury has returned an indictment charging Andrew Steven Romero, 28, of Albuquerque, N.M., with violating the federal firearms laws by unlawfully possessing a firearm and ammunition. The indictment was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Romero initially was charged with violating the federal firearms laws in a criminal complaint filed on May 29, 2015. The complaint alleged that Romero unlawfully possessed a firearm and ammunition on May 25 and May 26, 2015, in Bernalillo County, N.M. At the time, Romero was prohibited from possessing either firearms or ammunition because he previously has been convicted of multiple felony offenses, including voluntary manslaughter, tampering with evidence, aggravated assault with a deadly weapon, contributing to the delinquency of a minor, possession of a destructive device by a felon, heroin trafficking, and receiving or transferring a motor vehicle.
The single count indictment filed by the federal grand jury on June 9, 2015, charges Romero with being a felon in possession of a firearm on May 25, 2015, in Bernalillo County.
Romero was arrested on May 26, 2015, on related State charges and currently is in State custody. He will be transferred to federal custody to answer to the federal indictment.
If convicted of the charge in the criminal complaint, Romero faces up to ten years in federal prison. If the court determines that Romero is an armed career criminal, he faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment.
Charges in criminal complaints and indictments are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the federal case, which was investigated by a multi-jurisdictional team that includes the Albuquerque offices of the FBI and ATF and the Multi-Agency Officer Involved Shooting Task Force, which is comprised of officers from the Albuquerque Police Department, the Bernalillo County Sheriff’s Office, the New Mexico State Police and the Rio Rancho Police Department. The 13th Judicial District Attorney’s Office assisted in the investigation of the federal case.
Romero is being 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.
Farmville Man Sentenced for Drugs and Firearm ChargesRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced JOHNNY TYRONE HOPKINS, 44,of Farmville, North Carolina, to 60 months in prison and 5 years of supervised released for conspiracy to distribute and possession with the intent to distribute 500 grams or more of cocaine, 28 grams or more of cocaine base (crack), and a quantity of marijuana, and to 60 months in prison and 5 years of supervised release for possession of a firearm in furtherance of a drug trafficking crime. The 60 month sentence for the firearm charge will run consecutively to the 60 month sentence for the drug conspiracy producing a total term of 120 months. HOPKINS previously pled guilty to these charges on October 21, 2014.
The investigation revealed that between March 2010 and April 2014, HOPKINS conspired with others to distribute approximately 1 kilogram of cocaine, 135 grams of cocaine base (crack), 5 kilograms of marijuana and 52 grams of oxycodone. The investigation also revealed that HOPKINS sold firearms and possessed numerous firearms in connection with his drug trafficking.
The investigation of this case was conducted by the Farmville Police Department, the Pitt County Sheriff’s Office, the Greenville Police Department and the Drug Enforcement Administration. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Employee of Yonkers Dollar Store Sentenced in White Plains Federal Court to Two Years in Prison for Million-Dollar Food Stamp FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that KHALIL MOUGHAWECH was sentenced yesterday in White Plains federal court to a term of 24 months in prison and ordered to pay $1 million in restitution and $1 million in forfeiture for committing food stamp fraud from September 2010 to August 2013 at the Peso Value Plus store in Yonkers, New York. MOUGHAWECH was found guilty at a jury trial in February 2015. United States District Judge Vincent L. Briccetti imposed the sentence yesterday.
According to the Superseding Indictment and the evidence presented at trial:
MOUGHAWECH was the manager of the Peso Value Plus store between 2010 and August 2013, and often operated the store’s cash register. Peso Value Plus participated in the Supplemental Nutrition Assistance Program (“SNAP”), also known as the Food Stamp Program, where food stamp recipients could redeem their SNAP benefits using an electronic benefits transfer card to purchase eligible food items. Between approximately September 2010 and August 2013, MOUGHAWECH conspired with others to exchange SNAP benefits for cash illegally. The fraud resulted in a loss of $1 million to the SNAP Program.
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In addition to the prison sentence, MOUGHAWECH, 42, of the Bronx, New York, was ordered to pay $1,000,000 in restitution to the United States Department of Agriculture and to forfeit $1,000,000.
Mr. Bharara praised the outstanding investigative work of the Department of Agriculture’s Office of Inspector General and the Yonkers Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Daniel Filor and Benjamin Allee are in charge of the prosecution.
Eddy County Man Pleads Guilty to Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Ernesto Flores, 43, of Hagerman, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating federal drug trafficking laws.
Flores was arrested on March 12, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute on Feb. 4, 2015, in Eddy County, N.M. According to the criminal complaint, on that day, the Pecos Valley Drug Task Force, the Chaves County Metro Narcotics Task Force and the Eddy County Sheriff’s Office executed a search warrant on a storage room and garage belonging to Flores. The officers seized an AK-47, two handguns, a stolen handgun, $4,900.00 in cash, drug paraphernalia and approximately 296.52 grams of methamphetamine.
During today’s proceedings, Flores pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. Flores admitted that he possessed approximately 296.52 grams of methamphetamine on Feb. 4, 2015.
At sentencing, Flores faces a statutory minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. Flores remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA, the Pecos Valley Drug Task Force, the Chaves County Metro Narcotics Task Force and the Eddy County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Deputy Sheriff Convicted for Withholding Evidence Favorable to a DefendantRead the Press Release
Three Deputies Also Convicted of Obstructing Justice by Covering Up a Fellow Officer’s Use of Force
A federal jury in Albany, Georgia, today convicted three sheriff’s deputies on various federal offenses related to the cover-up of a 2012 incident in which a fourth deputy used force during the arrest of a civilian. The charges against Decatur County Captain Elizabeth Croley, Decatur County Deputy Christopher Kines and Decatur County Deputy Robert Wade Umbach related to a September 2012 incident in which former Grady County Deputy Sheriff Wiley Griffin, IV—who is the son of Decatur County Sheriff Wiley Griffin, III— used force against Aaron Parrish during an arrest at the Bainbridge BikeFest. The jury found that Croley, Kines and Umbach obstructed justice when they later helped cover up defendant Griffin’s actions. Specifically, the jury convicted Croley of obstructing justice by writing a false report and convicted Kines and Umbach of engaging in misleading conduct by lying to an FBI agent about the incident. Croley was also convicted of violating Aaron Parrish’s constitutionally protected right to a fair trial by intentionally withholding material exculpatory evidence from the District Attorney’s Office, and, in turn from Aaron Parrish’s criminal defense attorney, during a criminal prosecution of Parrish arising out of the same BikeFest incident.
Croley, Kines and Umbach will be sentenced by the Honorable W. Louis Sands, Senior U.S.District Court Judge for the Middle District of Georgia, at a later date to be set by the court.
The same jury that convicted the three Decatur County officers of obstruction acquitted Griffin on a civil rights count charging him with having used excessive force against Parrish and acquitted Kines and Umbach of obstructing justice by writing false reports.
During a trial that lasted more than two weeks, the jury heard evidence that Griffin struck Parrish in the eye with a metal flashlight while Parrish was being restrained on the ground by other deputies, including Kines and Umbach. The government presented evidence that Captain Croley and Deputies Kines and Umbach then helped cover up the incident by, among other things, Croley writing a false report and Kines and Umbach misleading the FBI by stating that they did not see Griffin at the scene.
The government also presented evidence that, after Parrish complained to the Decatur County Sheriff’s Office about the abuse he had suffered at BikeFest, the Sheriff’s Office opened a criminal investigation led by Croley that eventually resulted in felony criminal charges against Parrish. During that investigation, Croley took a witness statement from a civilian eyewitness who provided information that would have been materially helpful to Parrish’s defense. However, rather than providing that statement to the District Attorney so that it could then be provided to Parrish’s defense attorney for use at trial, Croley intentionally removed the exculpatory statement from the case file. This conduct formed the basis of the civil rights charge on which defendant Croley was convicted.
At sentencing, Croley will face a maximum sentence of 20 years for her false report and one year for the civil rights violation involving hiding exculpatory evidence. Kines and Umbach face maximum sentences of 20 years for making misleading statements to the FBI.
“As the jury recognized through its verdict, there are serious consequences when law enforcement officers lie to cover up the misconduct of a fellow officer and when an officer intentionally stacks the deck against an accused person by hiding evidence that could show the person’s innocence,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “When officers engage in this type of outrageous behavior, the Department of Justice stands ready to enforce the law and protect the civil rights of all Americans.”
“This case reflects that the rule of law applies to all and that the FBI will present for prosecution the facts as it finds them,” said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “Today's verdicts conclude an extensive investigation and prosecution that needed to be heard and the FBI is satisfied that it was."
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.
Deputy Sheriff Convicted for Withholding Evidence Favorable to A DefendantRead the Press Release
WASHINGTON – A federal jury in Albany, Georgia, today convicted three sheriff’s deputies on various federal offenses related to the cover-up of a 2012 incident in which a fourth deputy used force during the arrest of a civilian. The charges against Decatur County Captain Elizabeth Croley, Decatur County Deputy Christopher Kines and Decatur County Deputy Robert Wade Umbach related to a September 2012 incident in which former Grady County Deputy Sheriff Wiley Griffin, IV—who is the son of Decatur County Sheriff Wiley Griffin, III— used force against Aaron Parrish during an arrest at the Bainbridge BikeFest. The jury found that Croley, Kines and Umbach obstructed justice when they later helped cover up defendant Griffin’s actions. Specifically, the jury convicted Croley of obstructing justice by writing a false report and convicted Kines and Umbach of engaging in misleading conduct by lying to an FBI agent about the incident. Croley was also convicted of violating Aaron Parrish’s constitutionally protected right to a fair trial by intentionally withholding material exculpatory evidence from the District Attorney’s Office, and, in turn from Aaron Parrish’s criminal defense attorney, during a criminal prosecution of Parrish arising out of the same BikeFest incident.
Croley, Kines and Umbach will be sentenced by the Honorable W. Louis Sands, Senior U.S.District Court Judge for the Middle District of Georgia, at a later date to be set by the court.
The same jury that convicted the three Decatur County officers of obstruction acquitted Griffin on a civil rights count charging him with having used excessive force against Parrish and acquitted Kines and Umbach of obstructing justice by writing false reports.
During a trial that lasted more than two weeks, the jury heard evidence that Griffin struck Parrish in the eye with a metal flashlight while Parrish was being restrained on the ground by other deputies, including Kines and Umbach. The government presented evidence that Captain Croley and Deputies Kines and Umbach then helped cover up the incident by, among other things, Croley writing a false report and Kines and Umbach misleading the FBI by stating that they did not see Griffin at the scene.
The government also presented evidence that, after Parrish complained to the Decatur County Sheriff’s Office about the abuse he had suffered at BikeFest, the Sheriff’s Office opened a criminal investigation led by Croley that eventually resulted in felony criminal charges against Parrish. During that investigation, Croley took a witness statement from a civilian eyewitness who provided information that would have been materially helpful to Parrish’s defense. However, rather than providing that statement to the District Attorney so that it could then be provided to Parrish’s defense attorney for use at trial, Croley intentionally removed the exculpatory statement from the case file. This conduct formed the basis of the civil rights charge on which defendant Croley was convicted.
At sentencing, Croley will face a maximum sentence of 20 years for her false report and one year for the civil rights violation involving hiding exculpatory evidence. Kines and Umbach face maximum sentences of 20 years for making misleading statements to the FBI.
“As the jury recognized through its verdict, there are serious consequences when law enforcement officers lie to cover up the misconduct of a fellow officer and when an officer intentionally stacks the deck against an accused person by hiding evidence that could show the person’s innocence,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “When officers engage in this type of outrageous behavior, the Department of Justice stands ready to enforce the law and protect the civil rights of all Americans.”
“This case reflects that the rule of law applies to all and that the FBI will present for prosecution the facts as it finds them,” said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “Today's verdicts conclude an extensive investigation and prosecution that needed to be heard and the FBI is satisfied that it was."
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.
Defendants Sentenced for Roles in Marijuana Distribution ConspiracyRead the Press Release
ABILENE, Texas — Four defendants who have been convicted for their respective roles in a marijuana distribution conspiracy have been sentenced this week, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Three of those defendants, who were convicted after a five-day jury trial in February 2015, were sentenced yesterday, and one, who pleaded guilty to his role, was sentenced today.
Chief U.S. District Judge Jorge A. Solis sentenced Abilene, Texas, residents Jose Cavazos, 51, to 108 months in federal prison; Travis Kyndall Longoria, 22, to 120 months in federal prison; and David Rodriguez, 25, to 30 months in federal prison. Today, Judge Solis sentenced Brandon Johnson, 35, of Sweetwater, Texas, to 90 months in federal prison.
Daniel Longoria, 49, of Abilene, who was also convicted at trial, will be sentenced later, as will Fabricio Abelardo Perez, 43, of Abilene, who pleaded guilty to his role in the conspiracy.
Daniel Longoria, Cavazos, and Travis Longoria were each convicted at trial on an indictment charging one count of conspiracy to distribute and possess with intent to distribute 100 kilograms or more of marijuana. Rodriguez was found guilty at trial of the lesser charge of conspiracy to distribute and possess with intent to distribute less than 50 kilograms of marijuana. In January 2015, Perez and Johnson each pleaded guilty to the indictment.
According to evidence presented at trial and filed court documents, the investigation into the Daniel Longoria Drug Trafficking Organization (DTO) began when the Abilene Police Department learned that, since 2004, Daniel Longoria had been distributing marijuana from his business, Abilene Automotive and Performance. Daniel Longoria concealed marijuana in speaker boxes, and placed the speakers in vehicles so that the marijuana could be distributed throughout Abilene. Daniel Longoria also used vehicles that had been left at his business to conceal and transport large sums of bulk cash back to the DTO’s supply source in Mexico. All six defendants conspired together and worked together to transport and distribute large quantities of marijuana in Abilene.
The Abilene Police Department, the Texas Department of Public Safety and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Juanita Fielden and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Defendants Plead Guilty to Defrauding Local UniversityRead the Press Release
PHILADELPHIA - Kenneth Kapikian, 57, of Wayne, Pennsylvania, and Dennis Gagliardi, 60, of Chester Springs, Pennsylvania, pleaded guilty today to conspiring to defraud the University of Pennsylvania. Kapikian pleaded guilty to six counts of wire fraud and one count of conspiracy to commit money laundering; Gagliardi pleaded guilty to four counts of wire fraud and one count of conspiracy to commit money laundering. Sentencing hearings are scheduled for September 14, 2015 for both defendants.
The defendants, engaged in a scheme to fraudulently obtain monies from the University of Pennsylvania by falsely billing the University for services the defendants never provided to the Sheraton University City Hotel. They directed vendors of the Sheraton University City Hotel to inflate their invoices submitted to the hotel and then pay them the fraudulently inflated amounts as kickbacks.
Kapikian faces a maximum possible sentence of 140 years in prison; Gagliardi faces a maximum statutory sentence of 100 years in prison; special assessments, supervised release, and possible fines.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
Covington Man Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROY JOSEPH BUSIERE, age 67, of Covington, pled guilty today to conspiracy to commit bank fraud.
According to court documents, BUSIERE, who worked as a comptroller for A & H Armature Works, Inc., embezzled from the company’s bank account at First American Bank. BUSIERE conspired with another to steal from A & H Armature Works, Inc. by using PayPal and American Express accounts to transfer the funds.
BUSIERE faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Kurt D. Engelhardt set sentencing for September 16, 2015.
U.S. Attorney Polite praised the work of the United States Secret Service, New Orleans Field Division in investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen is in charge of the prosecution.
Roy Joseph Busiere Factual Basis (348.39 KB)
Correctional Officers Charged with Conspiracy to Violate Civil RightsRead the Press Release
TALLAHASSEE – A federal grand jury returned an indictment, unsealed today, charging that correctional officers William J. Ray, 40, of Carrabelle, Florida, and Corry B. Fletcher, 43, of Bristol, Florida, conspired to violate the civil rights of a state inmate and deprived the inmate of constitutional rights at the Franklin Correctional Institution, a state prison in the Northern District of Florida. Fletcher was additionally charged with obstruction of justice. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in July 2014, Ray and Fletcher, while acting as state correctional officers, conspired to intimidate a state prison inmate in the free exercise and enjoyment of the constitutional right not to be subjected to cruel and unusual punishment by correctional officers. The indictment further charges that Ray and Fletcher physically assaulted an inmate at the Franklin Correctional Institution without justification and caused the inmate bodily injury. The indictment finally charges that, in April 2015, Fletcher obstructed justice by intentionally misleading FBI and FDLE agents through false statements.
Ray and Fletcher were arrested this morning and arraigned in federal court today. The trial is scheduled for July 13, 2015, in Tallahassee.
The case is being investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement, with the assistance of the Florida Department of Corrections – Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Stephen M. Kunz.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Correctional Officers Charged with Conspiracy to Violate Civil RightsRead the Press Release
TALLAHASSEE – A federal grand jury returned an indictment, unsealed today, charging that correctional officers William J. Ray, 40, of Carrabelle, Florida, and Corry B. Fletcher, 43, of Bristol, Florida, conspired to violate the civil rights of a state inmate and deprived the inmate of constitutional rights at the Franklin Correctional Institution, a state prison in the Northern District of Florida. Fletcher was additionally charged with obstruction of justice. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in July 2014, Ray and Fletcher, while acting as state correctional officers, conspired to intimidate a state prison inmate in the free exercise and enjoyment of the constitutional right not to be subjected to cruel and unusual punishment by correctional officers. The indictment further charges that Ray and Fletcher physically assaulted an inmate at the Franklin Correctional Institution without justification and caused the inmate bodily injury. The indictment finally charges that, in April 2015, Fletcher obstructed justice by intentionally misleading FBI and FDLE agents through false statements.
Ray and Fletcher were arrested this morning and arraigned in federal court today. The trial is scheduled for July 13, 2015, in Tallahassee.
The case is being investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement, with the assistance of the Florida Department of Corrections – Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Stephen M. Kunz.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Office
(850) 216-3854, [email protected]
Columbus Man Sentenced for Role in Marijuana Distribution RingRead the Press Release
COLUMBUS, Ohio – Kevin Whitely, 33, of Columbus, Ohio, was sentenced in U.S. District Court to 84 months in prison for distributing marijuana and money laundering.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, and Columbus Police Chief Kim Jacobs announced the sentence handed down today by Senior U.S. District Judge George C. Smith.
According to court documents, in April 2010, DEA, IRS and Columbus Division of Police initiated an investigation into a marijuana trafficking organization. The investigation revealed that from December 2009 through September 2013 Whitely was involved with a large scale narcotics organization responsible for importing and distributing multiple kilograms of marijuana throughout central Ohio. Through surveillance, cooperating defendants, shipping documents and narcotic seizures, it was determined that this organization utilized various Ohio residences, business fronts, commercial freight, semi tractor-trailers and vehicles to store and transport narcotics and currency.
Specifically, Whitely and others received approximately 2,400 kilograms of marijuana that was transported from suppliers in Houston, Texas, to various fraudulent businesses in Columbus, Ohio. In order to conceal the identity of the marijuana, the marijuana shipments were disguised as hair care products, beauty supplies and whole grain rice in tightly wrapped packaging. During the course of the drug operation, the organization generated a significant amount of illegal proceeds from the sale of marijuana.
On September 11, 2013, DEA, IRS and Columbus Division of Police executed a search warrant at a warehouse located on North Hamilton Road in Columbus, Ohio, and a residence utilized by Whitely located on Ilene Road in Columbus, Ohio.
Upon entering the warehouse, agents observed Whitely and three other individuals removing numerous packages concealed inside approximately 12-15 pool tables. The packages contained approximately 500 kilograms of marijuana. It was determined that the marijuana originated in Texas and was delivered by commercial freight to the North Hamilton Road warehouse. Whitely and the co-conspirators intended to repackage the marijuana for the purpose of selling it to other drug traffickers in the Columbus area. In addition to the marijuana seized at the warehouse, law enforcement also seized $65,255 in U.S. currency from Whitley’s Ilene Road residence.
During the course of the drug conspiracy, Whitely earned substantial income from the sale of narcotics. Whitely used his drug proceeds to purchase assets and fund bank accounts through the use of nominees. Specifically, in March 2012 Whitley used a nominee to purchase a 2012 Infinitity G37 for approximately $44,000. Initially, Whitley paid the nominee $5,000 in cash to purchase the vehicle, and then paid the nominee $500 in cash per month until the vehicle was paid off.
Whitely also used a credit card obtained in a nominee name as his personal credit card. Whitely paid the nominee with cash earned from his drug sales for the charges he made on this credit card. In addition, Whitely deposited cash directly into the nominee’s bank account to reimburse the nominee for expenditures made by Whitley. Some of the transactions made by Whitely with this credit card included renting vehicles used to facilitate his drug trafficking activities.
Whitley pleaded guilty on October 28, 2014 to conspiracy to possess with the intent to distribute more than 1,000 kilograms of marijuana and money laundering.
He was ordered to forfeit $65,255 in cash that was seized during the execution of a search warrant on Ilene Road, Columbus, Ohio on September 11, 2013.
“All financial transactions leave a trail and we have the unique expertise to follow those leads,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Not only is a criminal going to jail for his crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture.”
U.S. Attorney Stewart commended the cooperative investigation by the DEA, IRS-Criminal Investigation and the Columbus Division of Police, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.
Coeur d'Alene Man Sentenced for Meth DistributionRead the Press Release
COEUR D'ALENE - Sean Ryan Hanich, 30, of Coeur d’Alene, Idaho, was sentenced yesterday to 77 months in prison followed by five years of supervised release for his involvement in a conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered forfeiture in the amount of $20,000. Hanich pleaded guilty to the charge on October 22, 2014.
According to court documents, Hanich admitted that on eight occasions, between December 2013, and March 2014, he distributed methamphetamine to an informant. In total, Hanich delivered approximately one half-pound of methamphetamine. Hanich has been in federal custody since his arrest in July 2014.
The case was investigated by Drug Enforcement Administration (DEA) and Idaho State Police (ISP), with the assistance of the North Idaho Violent Crimes Task Force.
Clear Lake Felon Sent to Prison for Possessing AmmunitionRead the Press Release
A twice convicted felon who possessed an assortment of ammunition was sentenced yesterday to more than six years in federal prison.
David Kuhlemeier, age 50, from Clear Lake, Iowa, received the prison term after a March 12, 2015, guilty plea to one count of possessing ammunition as a felon.
At the guilty plea hearing, Kuhlemeier admitted that he possessed a large assortment of ammunition. Further, he admitted to being a twice convicted felon guilty of burglaries in Pocahontas and Emmet Counties. The ammunition was found in his residence pursuant to a search warrant. During sentencing, the Court noted the numerous aggravating factors warranting Kuhlemeier’s sentence including numerous convictions, six of which involved theft and the two burglaries, and over 100 traffic violations.
Kuhlemeier was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 77 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kuhlemeier is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Steve Young and investigated by the Clear Lake Police Department.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR15-3001.
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Charlotte-Area Appliance Repairman Pleads Guilty to $576,000 Fraudulent Warranty Claim Scheme, Filing False Tax ReturnRead the Press Release
CHARLOTTE, N.C. – The owner and operator of Charlotte-area appliance repair companies pleaded guilty today to wire fraud and filing a false tax return, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. John Wesley Clark, 42, of Charlotte, N.C., appeared before U.S. Magistrate Judge David S. Cayer and admitted to submitting false and fraudulent warranty work order claims to an electronics company and to filing a false income tax return.
Thomas J. Holloman, III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service join Acting U.S. Attorney Rose in making today’s announcement.
According to the filed court documents and today’s plea hearing, beginning in at least 2010 and continuing through 2012, Clark, also known as John Isaacs, Jonathan Fitzgerald, and JA Adams, engaged in a scheme to defraud a major electronics company based in New Jersey by submitting false and fraudulent warranty work order claims, resulting in payments of $576,000 for warranty work that was not performed. Clark was the owner and operator of various Charlotte area appliance repair companies, including JA Appliance Co; Fitzgerald Appliance Co; BR Appliance; C&A Appliance Co.; D&L Appliance Co.; and J&S Appliance Co. Court records indicate that Clark, sometimes using an alias, established his companies as authorized service centers for the major electronics company. He then submitted fraudulent warranty work orders that listed, among other things, false customer information, false addresses, false part numbers, and false repair dates.
For tax years 2010 through 2012, Clark failed to report all of the income he obtained through the fraudulent warranty claims on his federal tax returns. Additionally, Clark filed fraudulent forms W-2 with his federal tax returns that falsely stated that tax withholding had been paid over to the IRS.
Clark pleaded guilty to one count of wire fraud and one count of filing a false tax return. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The filing a false tax return charge carries a maximum penalty of three years in prison and a $250,000 fine. As part of today’s plea agreement, Clark has agreed to pay restitution, the amount of which will be determined by the Court at Clark’s sentencing hearing, which has not been scheduled yet. Clark was released on bond following his plea hearing.
The investigation of the case was handled by IRS-CI and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Cedar Rapids Felon and Meth User Sent to Prison for Eight Years for Possessing a Firearm and AmmunitionRead the Press Release
A convicted felon and methamphetamine user who possessed a firearm and ammunition within the City of Cedar Rapids, Iowa, was sentenced today to eight years in federal prison.
Ricky Joe Vaughn, age 36, of Cedar Rapids, Iowa, received the prison term after a March 4, 2015, guilty plea to one count of possessing a firearm and ammunition as a felon.
At the guilty plea hearing, Vaughn admitted that he knowingly possessed a Ruger SR1911 Commander .45 caliber pistol and Winchester .45 ammunition on October 6, 2014, in Cedar Rapids. Vaughn also admitted to prior felony convictions in state court for manufacturing methamphetamine and theft.
Vaughn was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 96 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Vaughn is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the FBI’s Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR15-0005.
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CFO Sentenced to Prison for Check Kiting Scheme, Tax EvasionRead the Press Release
ERIE, Pa. - A resident of Bradenton, Florida, has been sentenced in federal court to 27 months in jail, and ordered to make restitution to Thayer Power and Communication in the amount of $202,789 and to the Internal Revenue Service in the amount of $87,840 on his conviction of bank fraud and tax evasion, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Brian M. Quimby,
According to information presented to the court, while Quimby was employed as CFO of Thayer Power and Communications, he engaged in an extensive check kiting scheme defrauding Key Bank and Thayer Power and Communication. In addition, Quimby failed to file his income tax return for calendar year 2007.
Prior to imposing sentence, Judge Cohill stated that he was troubled that Quimby had falsely told the IRS that he had mailed his tax return knowing that he had not filed the return with the IRS.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Quimby.
Beaufort Resident Sentenced for Making False Distress Calls to the U.S. Coast GuardRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced BRANDON PAUL GARNER , 32, of Beaufort, North Carolina, to 28 months of imprisonment and 3 years supervised release and was ordered to pay $18,994.00 in restitution. On March 10, 2015 GARNER entered a guilty plea to making false distress calls to the United States Coast Guard.
"The Coast Guard has a long and proud history of Search and Rescue, often at great personal risk to those who chose to devote their life to the service of others. False distress calls incur significant cost to the public by obligating search resources and vast amounts of tax payer dollars. More importantly, they risk the very lives of responders for cases where no actual distress exists. Additionally, these false distress calls take search and rescue resources away from those who may be in real distress," said Captain Sean Murtagh, commander of Sector North Carolina. “Through the vigilance of the public, our strong partnerships with the Department of Justice, the U.S. Attorney's Office, and our Coast Guard Investigative Service, this case affirms our collective commitment to holding accountable those individuals who make hoax calls."
According to information in the public record, on October 20, 2013, the United States Coast Guard received a “MayDay” call in which the caller claimed a vessel with five adults and two children was taking on water and sinking near the Core Creek Bridge in Beaufort, North Carolina. The calls indicated that one child was stuck on the vessel and could not be seen. Upon receipt of the distress call, small boats from Coast Guard Station Fort Macon, North Carolina; a helicopter from the Marine Corps Air Station at Cherry Point, North Carolina; a towboat from a local salvage company; and emergency responders from the sheriff’s office and two fire departments were deployed to assist in the search and rescue of the vessel. However, response crews found no vessel or persons in distress. Ultimately, the Coast Guard determined that the call was a hoax, but not until after $18,994.00 worth of resources were expended.
The search and rescue efforts were led by United States Coast Guard – 5th District and Coast Guard Sector North Carolina. The criminal investigation of this case was conducted by the United States Coast Guard Investigative Service. Assistant United States Attorney Susan B. Menzer prosecuted the case.
Arizona Woman Arrested on Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Bethzabeth Guadalupe Castro-Gallegos, 32, of Phoenix, Ariz., made her initial appearance this morning in federal court in Albuquerque, N.M., on a criminal complaint charging her with possession of methamphetamine and heroin with intent to distribute. Castro-Gallegos remains in federal custody pending a preliminary hearing and a detention hearing which are scheduled for tomorrow.
Castro-Gallegos was arrested yesterday after DEA agents allegedly seized approximately 5.28 pounds of methamphetamine and 4.84 pounds of heroin from her baggage during a consensual search at the Amtrak Train Station in Albuquerque.
If convicted on the charges in the criminal complaint, Castro-Gallegos faces a statutory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Anderson County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 22-year-old Palestine, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Abel Estrada Jr. pleaded guilty on Feb. 19, 2015, to possession of methamphetamine with the intent to distribute and was sentenced to 33 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Oct. 25, 2013, in Palestine, Texas, Estrada Jr. delivered approximately 28 grams of methamphetamine to an individual in Palestine, Texas. The court also found that from October 1, 2013 through September 24, 2014, Estrada distributed at least 40 grams of a methamphetamine and that during that time period, Estrada Jr. and received at least $10,000.00 from the delivery of methamphetamine.
This case was investigated by the Palestine City Police Department, the Anderson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant U.S. Attorney Jim Noble.
Alabama man, Shreveport woman sentenced for methamphetamine distribution conspiracyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that an Alabama man was sentenced to 168 months in prison and a Caddo Parish woman was sentenced to 120 months in prison for conspiracy to distribute methamphetamine.
Mazda Rasasy, 37, of Daphne, Ala., and Angela Dawn Hardin, 46, of Shreveport, were sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to distribute methamphetamine. They were also sentenced to four years of supervised release. According to evidence presented at the guilty pleas, Rasasy and Hardin conspired to possess with intent to distribute more than 50 grams or more of methamphetamine in August of 2013. Law enforcement agents seized 69.6 grams of methamphetamine on August 9, 2013 from Rasasy’s vehicle after he became a target in a local methamphetamine trafficking investigation. Agents later searched Hardin’s residence, where another 141.9 grams of methamphetamine and 17 firearms were seized. Agents learned during the investigation that Rasasy occasionally drove methamphetamine from Alabama to Shreveport, and Hardin allowed him to use her home as a base while he sold the methamphetamine in the area. Rasasy has a prior federal conviction for distributing methamphetamine.
The DEA and ATF conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Abilene Couple Sentenced on Methamphetamine Conspiracy and Distribution ConvictionsRead the Press Release
ABILENE, Texas — A married couple from Abilene, Texas, was sentenced today following their guilty pleas earlier this year to drug distribution and conspiracy charges, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Chief U.S. District Judge Jorge A. Solis sentenced Juan Jose Torres a.k.a. “Nano”, 39, to 168 months in federal prison, and he sentenced Anna Lisa Torres, 30, to 24 months in federal prison. Each pleaded guilty earlier this year to one count of conspiracy to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. Juan Torres has been in custody since his arrest in September 2014. Judge Solis ordered Anna Torres to surrender to the Bureau of Prisons on July 15, 2015.
According to documents filed in their case, Juan and Anna Torres conspired with each other, and with others, to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. On May 16, 2014, Juan and Anna Torres met an individual at an agreed-upon parking lot where Juan Torres provided the buyer with two clear plastic baggies of methamphetamine. Then, on May 21, 2014, Juan Torres told a buyer who had asked for a full ounce of methamphetamine that he did not have that amount, but he could get him an “8-ball.” Juan Torres advised that his son (age 13) got out of school at 3:30 p.m., and the buyer could get it from him. That afternoon, the buyer went to the Torres’ home, and the son sold the buyer 3.8 grams of methamphetamine in exchange for $160.
The Texas Department of Public Safety, the Abilene Police Department and the FBI investigated. Assistant U.S. Attorney Juanita Fielden prosecuted.
77-Year Sentence Imposed on Anchorage Man for Conviction for Drug Trafficking, Kidnapping, and Using Firearms in Furtherance of Those CrimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that United States Chief District Court Judge Ralph R. Beistline sentenced an Anchorage man, Phosavan Khamnivong, a.k.a. “P.K.,” 34, to 77 years’ imprisonment following his February 2015 convictions on drug trafficking conspiracy, two kidnapping charges, and two firearm charges.
According to court documents, Khamnivong has a prior conviction for Murder in the Second Degree, for the 1997 killing of a Kodiak cab driver. Khamnivong served approximately ten years of a 25-year sentence in that case. Shortly after his release, he immersed himself in the world of drug trafficking, becoming a large scale distributor of heroin and methamphetamine. One of the people he distributed drugs to was “Victim A,” a friend that Khamnivong met while he was prison. In late 2012 to early 2013, the defendant became associated with Stuart Seugasala. The men started bringing nearly pure methamphetamine, as well as other drugs, into Alaska from California. On March 13, 2013, Seugasala, Khamnivong, Timothy Miller, a.k.a. “Lil Tone,” and Anoai Sialofi, a.k.a. “A-Loc,” kidnapped, tortured, and sexually assaulted Victims A and B, because Victim A owed Khamnivong a past due heroin debt. At Seugasala’s direction, the sexual assault of one of the victims was videotaped so that he could intimidate others that owed the group money. The victims were released after over three hours and only after Victim A agreed to repay the drug debt to Khamnivong.
On May 16, 2013, an Anchorage Police Officer attempted to pull over Khamnivong’s vehicle after Khamnivong met with Seugasala in Anchorage. Khamnivong provided his license and registration, but fled when the officer expressed an interest in searching Khamnivong’s vehicle. As he fled, Khamnivong hit two police cars and then threw a loaded firearm from his vehicle. The firearm was found by a citizen on the sidewalk near Steller Secondary School, and turned into police.
Khamnivong was indicted in the federal case in August 2013, and remained a fugitive until December 2013, when he was arrested by the U.S. Marshals Fugitive Task Force. At arrest, agents recovered more drugs, guns and money.
Judge Beistline previously sentenced Stuart Seugasala to life imprisonment after a jury trial. Judge Beistline also sentenced Stacy Laulu, who went to trial with Seugasala and was convicted of HIPAA violations, to two years imprisonment. Co-defendant Anoai Sialofi was sentenced to 235 months imprisonment and co-defendant Timothy Miller was sentenced to a term of 12 years imprisonment.
In imposing the 77-year sentence on Khamnivong, Judge Beistline noted the defendant’s long criminal history, beginning when he was a juvenile, which culminated with the murder of the innocent cab driver for seven dollars. Judge Beistline noted that “he would have paid more than seven dollars for a chance at life.”
Judge Beistline then noted that when Khamnivong was released, he set himself up as a “big time heroin dealer” in Anchorage, who associated with “Seugasala and other criminals.” In comparison to Seugasala, Judge Beistline stated that Khamnivong was “equally evil in his desires and designs,” noting that he showed no mercy to Victim A, but rather “showed sick cruelty” that “didn’t stop until he promised to pay.” After the crime, Judge Beistline commented that Khamnivong “ran and hid, surrounding himself with an arsenal of weapons and drugs.”
Judge Beistline noted that a 77-year sentence was appropriate because Khamnivong was a “heartless career criminal and a danger to the community,” and stated that he did not think “there was any chance” that Khamnivong would change.
Ms. Loeffler commends the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Anchorage Police Department, the Alaska State Troopers, and the Valdez Police Department for the investigation that led to the convictions in this case.
18 Waco Area Aryan Brotherhood Members and Associates Sentenced to Federal Prison for Role in Methamphetamine Distribution OperationRead the Press Release
In Waco today, a federal district judge sentenced 18 Aryan Brotherhood (AB) members and associates to federal prison for their roles in a methamphetamine distribution conspiracy announced Acting United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
United States District Judge Walter S. Smith sentenced:
David Aguilar, age 35, of Belton, TX, to 188 months imprisonment followed by 5 years of supervised release;
Oscar Walker (aka “Country”), age 30, of Temple, TX, to 188 months imprisonment followed by 5 years of supervised release;
Ronnie Johnson, age 49, of Belton, to 151 months imprisonment followed by 5 years of supervised release;
Christopher Breckenridge, age 39, of Gatesville, to 130 months imprisonment followed by 5 years of supervised release;
Robert Morgan (aka “Hopper”), age 45, of Temple, to 121 months imprisonment followed by 5 years of supervised release;
John McLaughlin, age 34, of Temple, to 120 months imprisonment followed by 5 years of supervised release;
William Hubert Brackett, age 24, of Temple, to 108 months imprisonment followed by 5 years of supervised release;
Lucas West, age 29, of Lampasas, TX, to 84 months imprisonment followed by 5 years of supervised release;
James Malady, age 28, of Belton, to 84 months imprisonment followed by 5 years of supervised release;
Ricky Levy, age 54, of Nolanville, TX, to 84 months imprisonment followed by 5 years of supervised release;
Joshua Wilkins, age 27, of Gatesville, TX, to 60 months imprisonment followed by 5 years of supervised release;
Michelle Johnson, age 47, of Belton, to 60 months imprisonment followed by 5 years of supervised release;
Nicole Marshall, age 35, of Gatesville, TX, to 60 months imprisonment followed by 5 years of supervised release;
Farron Russell, age 34, of Belton, to 48 months imprisonment followed by 3 years of supervised release;
Thomas Clifton, age 46, of Waco, to 48 months imprisonment followed by 3 years of supervised release;
Jeremiah Jones, age 37, of Gatesville, to 37 months imprisonment followed by 3 years of supervised release;
Larry Wayne Jeremiah, age 33, of Belton, to 24 months imprisonment followed by 3 years of supervised release; and,
Robert Blake Doty, age 32, of Temple, to 21 months imprisonment followed by 3 years of supervised release.
In addition to the prison and supervised release terms, Judge Smith ordered each defendant to pay a $1,000 fine.
Sentencing for three defendants, originally set for today, was continued. Loren Swanson, age 40, of Belton, is now set for 1:00 tomorrow afternoon. Vicki Kay Levy, age 52, of Belton, is now set for 1:00pm on June 17, 2015. Amanda Petrie, age 35, of Temple, is now set for 1:00pm on August 12, 2015.
Seven other defendants are scheduled to be sentenced at 1:00pm on June 24, 2015. They are: 40-year-old Robert Eaton (aka “Compound Rob”) of Kempner, TX; 52-year-old Henry David Walker (aka “Stalker”) of Temple; 55-year-old Wayne Martin Huisinger of Belton; 40-year-old Eric Ganos of Temple; 49-year-old Kirt Easter of Belton; 30-year-old Robert Helms of Temple; and, 23-year-old Sonya Whitenburg of Flat, TX.
Ronnie Knepler, age 54, of Belton, and Jose Rodriguez, age 25, a resident alien living in Dallas, are scheduled to be sentenced on July 8, 2015. Sylvia O’Neal, age 41, of Temple, is scheduled to be sentenced on August 5, 2015, and Colby Warren, age 40, of Gatesville, is scheduled to be sentenced on September 2, 2015.
All of the defendants named above pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. Robert Eaton also pleaded guilty to one count of possession of a firearm during a drug trafficking crime and one count of felon in possession of a firearm. David Henry Walker also pleaded guilty to two counts of felon in possession of a firearm. During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
“These sentences resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”
Derrick Cooper (aka “Red”), age 35, of Temple, and Chris Voerhis (aka “Lurch”), age 50, of Moffat, TX, were also charged by federal grand jury indictment as a result of this investigation. On June 5, 2015, Cooper withdrew his guilty plea to one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine. He is scheduled for jury selection and trial on August 3, 2015, in Waco before Judge Smith. Voerhis, who was arrested on Monday, is scheduled to have his detention hearing tomorrow at 2:00pm before U.S. Magistrate Judge Jeffrey C. Manske in Waco. He is charged with one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine. Cooper and Voerhis face between five and 40 years imprisonment upon conviction.
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
This case is the result of a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department, Austin Police Department and the United States Marshals Service. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris are prosecuting this case on behalf of the Government.
14 Alleged Members of “Black Guerilla Family” Gang Charged with Participation in Violent Racketeering EnterpriseRead the Press Release
Baltimore, Maryland - A federal grand jury returned a racketeering indictment charging 14 defendants for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF). The indictment, which was returned on June 3, 2015 and unsealed today, charges 14 alleged BGF gang members with conspiring to violate federal racketeering and drug trafficking laws. Two defendants also are charged with conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering. Four defendants are also charged with using a gun in relation to violent crimes; and one defendant also faces charges of drug trafficking, possession of a gun in furtherance of drug trafficking and illegal possession of a gun.
This brings to 118 the total number of alleged BGF members and associates indicted in federal court since April 2009.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt, Federal Bureau of Investigation; Acting Assistant Special Agent in Charge Shawn R. Ellerman of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts, Baltimore Police Department; Chief Gary Gardner of the Howard County Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Federal, state and local agencies have joined to target leaders and key members of violent gangs operating in Baltimore City,” said U.S. Attorney Rod J. Rosenstein. “Today’s indictment alleges that the Black Guerilla Family gang is an organized criminal enterprise with leaders and members who deal drugs and commit violent crimes. Anyone who joins a criminal gang can be held accountable for all crimes committed by fellow gang members.”
The following defendants, all of Baltimore unless otherwise specified, are charged in the indictment unsealed today:
Timothy Michael Gray, a/k/a “Mike Gray,” “Uncle Mike,” “MG,” and “M”, age 47,
Robert Nedd, a/k/a “Pizza,” and “P,” age 44,
Mark Bazemore, a/k/a “Uncle Mark,” age 30,
Marshall Spence, “a/k/a “Uncle M,” age 33,
Irvin Vincent, a/k/a “O,” and “O-dog,” age 26, of Hanover, Maryland;
Glendrict Frazier, a/k/a “Glen” and “Uncle Glen,” age 51,
Timothy Hurtt, a/k/a “Uncle Tim,” and “Tim,” age 44,
William Harrington, a/k/a “Boosie” and “Boosey,” age 34,
Tyrone Franklin, a/k/a “Bones,” age 35,
Troy Kellam, a/k/a “G,” age 29,
Calvin Palmer, a/k/a “C,” age 21,
Davon Robinson, a/k/a “Veeto,” age 26,
Michael Smith, Jr., a/k/a “Mikey,” “Lil Mike,” and “Mik,” age 29, and
Daquan Burman, a/k/a “Day-Day,” age 20.
According to the nine count indictment, the 14 defendants are members and associates of the BGF, or “Jamaa,” the Swahili word for family, “J” for short, a nationwide gang operating in prisons and on the streets of cities throughout the United States. Founded in California in the 1960s, BGF appeared in the Maryland correctional system in the 1990s. Although still a prison gang, BGF is involved in criminal activity, including murder, robbery, extortion, narcotics trafficking, obstruction of justice, and witness intimidation throughout communities in Baltimore City, in Maryland, and elsewhere.
All 14 defendants are charged in the superseding indictment with conspiring to conduct the affairs of BGF through a pattern of criminal activity from at least 2012 to the present, including: narcotics trafficking, murder; extortion; robbery, and retaliation against a witness or informant. All 14 defendants are also charged with conspiracy to distribute heroin, cocaine base (crack), cocaine and oxycodone. The defendants are alleged to have distributed drugs to customers in the Baltimore area, including the area of Pratt and Payson Streets, a BGF-controlled drug shop at Baltimore and Catherine Streets, and on Lemmon Street, all in Baltimore City. Vincent is also alleged to have distributed wholesale quantities of heroin to a coconspirator, who then sold the heroin for Vincent to customers in Howard County, Maryland.
More specifically, the indictment alleges that Gray was the city-wide commander of BGF on the streets of Baltimore since 2013. Gray and Hurtt collected money from BGF gang members and commanders who controlled BGF drug shops throughout Baltimore. Between September and December 2013, Gray sanctioned the murder of a BGF gang member, then watched as another BGF gang member fired several shots at the victim attempting to kill him. Gray also sanctioned the murder of second BGF member, a/k/a “Newbie.” In May of 2014, Gray allegedly authorized the shooting of Victim 3, and in June of 2014, authorized the murder of “Gutter,” an unknown person.
The indictment further alleges that on three separate occasions, Vincent distributed heroin to other heroin distributors which caused the death of three of the distributors’ customers, who died from “heroin and oxycodone intoxication” on November 14, 2013; “heroin intoxication” on December 4, 2013; and “morphine and fentanyl intoxication” on May 1, 2014.
According to the indictment, on March 10, 2014, after confirming with Bazemore that an order still existed to kill Victim 3, Harrington shot the victim in Baltimore, and was driven from the location by Burman. On May 25, 2014, Harrington advised Palmer that Victim 3 was trying to have Harrington sanctioned, while in jail, for shooting him. On May 27, 2014, Harrington was assaulted in jail by other BGF members for shooting Victim 3.
The indictment alleges that on June 15, 2014, Robinson ordered an unindicted coconspirator to assault Palmer who was being sanctioned by Victim 5. The next day, Kellam and Franklin murdered Victim 5.
The indictment further alleges that on September 11, 2014, Spence murdered BGF gang member Victim 6, a minor, by firing multiple gun shots, including one to the victim’s face, in Baltimore. From September to November 2014, in a telephone conversation between Spence and a minor, Spence allegedly threatened and intimidated the minor, who was a witness in the investigation into the homicide of Victim 6. Spence and a fellow BGF gang member discussed the murder of witnesses who were involved with the investigation into the homicide of Victim 6.
The defendants face a maximum sentence of life in prison on the racketeering and drug conspiracies. Harrington and Bazemore also face a maximum sentence of 10 years in prison for conspiring to commit murder in aid of racketeering and attempted murder in aid of racketeering; and a mandatory minimum of 10 years in prison consecutive to any other sentence and a maximum sentence of life in prison for using a gun to conspire to commit murder in aid of racketeering and attempted murder in aid of racketeering. Gray, Bazemore, Frazier and Hurtt also face a maximum sentence of 20 years in prison for conspiring to use and carry a gun in relation to a crime of violence and drug trafficking. Vincent faces a maximum sentence of 20 years in prison for possession with intent to distribute heroin, a mandatory minimum of 10 years in prison consecutive to any other sentence and a maximum sentence of life in prison for possessing a gun in furtherance of a drug trafficking crime and 10 years in prison for being a felon in possession of a gun.
The defendants are expected to have their initial appearance in U.S. District Court in Baltimore this afternoon.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Mr. Rosenstein praised the FBI, DEA, Baltimore City and Howard County Police Departments and Baltimore State’s Attorney’s Office for their assistance in this investigation and prosecution. Mr. Rosenstein also commended the Anne Arundel County and Baltimore County Police Departments for their assistance in the investigation.
United States Attorney Rod J. Rosenstein thanked Baltimore City Assistant State’s Attorneys Traci Robinson, Charles Blomquist and Matthew Hoff for their work in the investigation and prosecution, and Assistant United States Attorneys James T. Wallner and Clinton J. Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Tuesday 9 June 2015
Universal Aryan Brotherhood Member and Associates Plead Guilty to Racketeering ChargesRead the Press Release
One member of the Universal Aryan Brotherhood (UAB) prison gang pleaded guilty today to an indictment charging him with conspiracy to participate in a racketeering enterprise and conspiracy to possess with intent to distribute methamphetamine, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Anthony Ramon Hall, 39, of Tulsa, Oklahoma, pleaded guilty before U.S. District Court Judge Claire V. Eagan of the Northern District of Oklahoma. In addition, on June 2, 2015, UAB associate Carl Matthew Smith, 37, of Tulsa, pleaded guilty to conspiracy to participate in a racketeering enterprise and conspiracy to possess with intent to distribute methamphetamine. On June 4, 2015, UAB associate Robert Allen Paul Bryan, 40, of Tulsa, pleaded guilty to one count of violence in aid of racketeering connected to the maiming of a former UAB member. Hall’s sentencing is set Sept. 24, 2015, Smith’s sentencing is set for Sept. 3, 2015. Bryan’s sentencing is set for Sept. 22, 2015.
In connection with their guilty pleas, Hall and Smith acknowledged their membership in or association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma. Hall also admitted that he held a leadership position in the UAB’s “main council,” which is the supreme governing body of the UAB. The main council has the authority to issue direct orders, vote on the admission of new members or prospects, declare war on rival gangs and mete out punishment for violation of UAB bylaws.
Hall and Smith further admitted to advancing the UAB enterprise by selling methamphetamine. Specifically, Hall admitted to using smuggled cell phones to coordinate the delivery, receipt and sale of methamphetamine from prison by UAB members and associates outside of prison who would then return profits to him. Hall also admitted to coordinating the firebombing of a car belonging to a person he believed had stolen from UAB’s methamphetamine enterprise. Smith admitted to selling methamphetamine and marijuana for the benefit of the UAB as well, and to delivering drug proceeds to UAB members in prison.
During his plea proceedings, Bryan admitted to participating in the May 2013 maiming of a former UAB member. Specifically, Bryan admitted that he and UAB members, operating on orders from the main council, restrained the victim while additional gang members used a heated knife to burn off the victim’s UAB neck tattoo.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Tulsa, Oklahoma, Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigations Division; FBI; Tulsa County Sheriff’s Office; and the Oklahoma Department of Corrections. The case is being prosecuted by John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma.
Universal Aryan Brotherhood Member and Associates Plead Guilty to Racketeering ChargesRead the Press Release
TULSA, Okla.-One member of the Universal Aryan Brotherhood (UAB) prison gang pleaded guilty today to an indictment charging him with conspiracy to participate in a racketeering enterprise and conspiracy to possess with intent to distribute methamphetamine, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Anthony Ramon Hall, 39, of Tulsa, pleaded guilty before U.S. District Court Judge Claire V. Eagan of the Northern District of Oklahoma. In addition, on June 2, 2015, UAB associate Carl Matthew Smith, 37, of Tulsa, pleaded guilty to conspiracy to participate in a racketeering enterprise and conspiracy to possess with intent to distribute methamphetamine. On June 4, 2015, UAB associate Robert Allen Paul Bryan, 40, of Tulsa, pleaded guilty to one count of violence in aid of racketeering connected to the maiming of a former UAB member. Hall’s sentencing is set Sept. 24, 2015, Smith’s sentencing is set for Sept. 3, 2015. Bryan’s sentencing is set for Sept. 22, 2015.
In connection with their guilty pleas, Hall and Smith acknowledged their membership in or association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma. Hall also admitted that he held a leadership position in the UAB’s “main council,” which is the supreme governing body of the UAB. The main council has the authority to issue direct orders, vote on the admission of new members or prospects, declare war on rival gangs and mete out punishment for violation of UAB bylaws.
Hall and Smith further admitted to advancing the UAB enterprise by selling methamphetamine. Specifically, Hall admitted to using smuggled cell phones to coordinate the delivery, receipt and sale of methamphetamine from prison by UAB members and associates outside of prison who would then return profits to him. Hall also admitted to coordinating the firebombing of a car belonging to a person he believed had stolen from UAB’s methamphetamine enterprise. Smith admitted to selling methamphetamine and marijuana for the benefit of the UAB as well, and to delivering drug proceeds to UAB members in prison.
During his plea proceedings, Bryan admitted to participating in the May 2013 maiming of a former UAB member. Specifically, Bryan admitted that he and UAB members, operating on orders from the main council, restrained the victim while additional gang members used a heated knife to burn off the victim’s UAB neck tattoo.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Tulsa Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigations Division; FBI; Tulsa County Sheriff’s Office; and the Oklahoma Department of Corrections. The case is being prosecuted by John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma.
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United States Settles Kickback Allegations with Georgia HospitalRead the Press Release
WASHINGTON – The Department of Justice announced today that the United States has settled a False Claims Act lawsuit with Health Management Associates (HMA) and Clearview Regional Medical Center for $595,155. The lawsuit filed in the Middle District of Georgia alleged that from 2008 to 2009 the hospital paid kickbacks to an obstetric clinic that served primarily undocumented Hispanic women, in return for referral of those patients for labor and delivery at the hospital. The hospital then billed the Medicaid program in Georgia for the services provided to the referred patients. Clearview, located in Monroe, Georgia, was named Walton Regional Medical Center and was owned by hospital operator HMA during the time period relevant to the lawsuit. Clearview is now owned by Community Health Systems (CHS), which purchased HMA in January 2014.
“This resolution illustrates our commitment to ensuring that health care providers who pay kickbacks in return for patient referrals are held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Schemes such as this one corrupt the health care system and take advantage of vulnerable patients.”
“The Medicaid program is a vital part of the government’s efforts to make sure that everyone has access to health care,” said U.S. Attorney of the Middle District of Georgia Michael Moore. “Instead of providing health care services to expectant mothers in its area and receiving payment for those services from Medicaid, the hospital participated in a scheme to pay kickbacks in exchange for having pregnant women from outside its market funneled to its facility with the goal of increasing the amount of Medicaid money the hospital could claim.”
The United States’ complaint alleges that HMA’s Walton Regional Medical Center paid kickbacks to Hispanic Medical Management doing business as Clinica de la Mama (Clinica) and related entities, in return for Clinica’s agreement to send pregnant women to Walton Regional for deliveries paid for by Medicaid, in violation of the federal Anti-Kickback Statute. The kickbacks were disguised as payments for a variety of services allegedly provided by Clinica.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“Hospitals that pay kickbacks to clinics for referrals of undocumented pregnant patients are taking advantage of both these vulnerable women and the taxpayer-funded Medicaid program,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Atlanta Regional Office. “Our agency is dedicated to investigating such corrosive kickback schemes, which undermine the public’s trust in medical institutions and the financial health of government health care programs.”
“The FBI is proud of the role it played in bringing forward today’s settlement, said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “The FBI will continue to provide significant investigative assets and resources to ensure that the integrity of federally funded health care programs such as Medicaid are protected from providers who would abuse them.”
As part of the settlement, HMA and Clearview will pay the State of Georgia an additional $396,770 to settle Georgia’s claims under the Georgia False Medicaid Claims Act. The Medicaid program is a jointly funded federal-state program that provides health care to the poor and disabled. Although undocumented aliens are not eligible for regular Medicaid coverage, the Medicaid program provides coverage for emergency conditions, including childbirth, for undocumented aliens.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it did in this case against Walton Regional, as well as several other defendants, including Clinica de la Mama and four hospitals owned by Tenet Healthcare Corporation. The litigation against the non-settling defendants is ongoing. The relator, Ralph D. Williams, the chief financial officer of Walton Regional from April 2009 to October 2009, will receive $119,031 from the United States’ portion of the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Middle and Northern Districts of Georgia, HHS-OIG, FBI and the Office of the Attorney General for the State of Georgia.
The case is captioned United States ex rel. Williams v. Health Mgmt. Assocs. Inc., et al., No. 3:09-CV-130 (M.D. Ga.).
The claims resolved by this settlement are allegations only and there has been no determination of liability.
UPMC Claims Department Employee Charged in Fraud SchemeRead the Press Release
PITTSBURGH - An Armstrong County woman has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and health care fraud, United States Attorney David J. Hickton announced today.
The eleven-count indictment named Francine Ann Priestas, 47, as the sole defendant.
According to the indictment presented to the court, Francine Ann Priestas was employed as a supervisor in the UPMC Health Plan Claims Department. Priestas generated billing statements which falsely represented that she and others known to the grand jury received medical services. She submitted 156 false statements on the UPMC system and received payments totaling $184,835.
The law provides for a maximum total sentence of 210 years in prison, a fine of $2,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney's Office Obtains Two Guilty Pleas from Gang Members with GunsRead the Press Release
DENVER – The U.S. Attorney’s Office, working closely with its law enforcement partners, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced that two unrelated gang members who committed firearm crimes have recently pled guilty to those crimes. Both defendants now await sentencing.
Colton Field, age 32, of Metro Denver, a Crenshaw Mafia Gangster Blood, who was indicted by a federal grand jury in Denver on February 11, 2015 and then pled guilty on June 5, 2015 before U.S. District Court Judge Christine M. Arguello to being a felon in possession of a firearm, is scheduled to be sentenced on October 7, 2015 by Judge Arguello. According to the stipulated facts contained in Field’s plea agreement, on December 11, 2014 an Aurora Police officer heard the stereo of a blue PT Cruiser from 50 feet away. The officer stopped the car based on a noise violation. Field was driving the vehicle.
After pulling the vehicle over, the officer noticed a tattoo and clothing that stated “104,” consistent with the Crenshaw Mafia Gangster Bloods. When asked to provide his identification, Field, gave a false name. After the officer asked him to step out of the car, Field drove off recklessly. Responding officers found an empty PT Cruiser. An inventory search of the vehicle revealed ammunition and a 9 mm firearm. The defendant was then located hiding under a car near where the PT Cruiser was found. Further investigation revealed that the defendant had been handling the firearm, including loading it. The defendant’s girlfriend purchased the firearm at a pawn shop. Field faces not more than 10 years in federal prison, and up to a $250,000 fine. This case was investigated by the Aurora Police Department and the ATF. The defendant is being prosecuted by Assistant U.S. Attorney Beth Gibson.
Jonathan Thomas Fricks, age 34, of Denver, an Oldies 13 gang member, who was indicted by a federal grand jury in Denver on December 16, 2014 and then pled guilty yesterday before U.S. District Court Judge Christine M. Arguello to possession with intent to distribute at least 5 grams of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, is scheduled to be sentenced on September 22, 2015 by Judge Arguello. According to the stipulated facts contained in the plea agreement, between August 14 and 15, 2014, a Colorado Department of Corrections Community Parole Officer (CPO) was investigating the whereabouts of Fricks, who was wanted on a parole violation. The CPO was able to locate the defendant at a Motel 6 in Denver. At the motel the CPO observed the defendant loading items into a car in the parking lot. The defendant and a woman then departed the Motel 6. The CPO called for backup from the Denver Police Fugitive Team and followed the defendant and the woman to Edgewater, Colorado. The defendant was arrested inside a local grocery store. Upon his arrest, officers found $3,755 in cash in the defendant’s pants pocket.
The CPO searched the car in which defendant was riding. Within the car, the CPO unzipped a black and white bag and observed a magazine with ammunition loaded in it and the butt of a gun. Upon discovering the firearm, the CPO called for agents from the ATF to assist with the search. A full search of the car by ATF agents revealed a 9 mm pistol loaded with seventeen rounds; a second magazine containing five rounds of ammunition; three baggies containing 47 grams of methamphetamine; and other drug trafficking related items. The methamphetamine Fricks possessed was at least 95 percent pure. Fricks faces a minimum sentence of 10 years, and up to life in federal prison, and up to a $5,000,000 fine. This case was investigated by the Colorado Department of Corrections, the Denver Police Department, and the ATF. The defendant is being prosecuted by Assistant U.S. Attorney Peter McNeilly.
These cases arise out of the Project Safe Neighborhood initiative, a partnership which includes the Aurora, Denver and Lakewood Police Departments (among others), working in concert with the ATF and the U.S. Attorney’s Office.
Tyshawn Mack and Thomas Parker Sentenced on Drug and Firearms ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Thomas Parker of Brooklyn, New York was sentenced today to 39 months in prison. Chief Judge Christina Reiss also ordered Parker to serve a three-year period of supervised release following his term of imprisonment. Parker also agreed to the forfeiture of $2,495 as proceeds of drug distribution. On February 3, 2015, Parker pled guilty to conspiracy to distribute heroin and cocaine base and conspiracy to possess firearms in furtherance of a drug trafficking crime. On May 28, 2015, Chief Judge Reiss sentenced Tyshawn Mack of Brooklyn, New York to 10 years in prison to be followed by four years of supervised release. Mack had earlier pled guilty to conspiracy to distribute at least 28 grams of cocaine base and 100 grams of heroin.
According to court records, from approximately November 2013 until January 2014, Mack and Parker were involved in the distribution of significant quantities of heroin and cocaine base in the Burlington and Winooski areas. Investigation revealed that drug users were stealing property from area residences to trade for drugs from Mack and Parker. Mack and Parker also traded drugs for firearms and regularly carried firearms in the course of drug dealing. This drug and firearm conspiracy ended on January 24, 2014 when law enforcement arrested Mack, Parker, and other local associates. On that day, a search warrant was executed at a residence on Hickock Street in Burlington where Parker and Mack were known to deal drugs. The residence was rented by Guillaume Etienne, who allowed Mack and Parker to use the apartment to deal drugs. Etienne was federally convicted for his role in this case. Law enforcement seized five firearms and approximately $33,495 in cash from the Hickock Street residence. Simultaneous to the execution of the search warrant on Hickock Street, law enforcement conducted a traffic stop of a truck in which Mack and Evan Blum were riding. The truck had just left the Hickock Street residence and was traveling to the residence of Deirdre Hey, who herself was selling drugs for Mack and Parker. Hey was also federally convicted for her role in this conspiracy. During the course of the traffic stop, Mack got into the driver’s seat of the truck and sped off at high speed through the streets of downtown Winooski. Mack struck several parked cars and eventually came to a stop, after which he fled on foot. Law enforcement apprehended Mack a short time later. A search of Mack incident to his arrest revealed a large amount of cash. A search of the truck yielded two loaded handguns, approximately 100 grams of heroin, 41 grams of ecstasy, 36 grams of cocaine base, and a quantity of marijuana. Blum was also federally convicted for his role in the drug conspiracy.
As a result of these prosecutions, three firearms were forfeited to the United States and three firearms were returned to their lawful owner. The cash seized from the Hickock Street residence was also forfeited.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, the Winooski Police Department, and the Burlington Police Department. The government was represented by Assistant U.S. Attorneys Nancy Creswell and Kevin J. Doyle. Mack was represented by Mark A. Kaplan, Esq. of Kaplan and Kaplan in Burlington. Michael J. Straub, Esq. of Burlington represented Parker.
Two More Banks Reach Resolutions under Justice Department's Swiss Bank ProgramRead the Press Release
Société Générale Private Banking Will Pay $17.807 Million Penalty and Berner Kantonalbank AG Will Pay $4.619 Million Penalty; Both Continue to Cooperate With Department of Justice
The Department of Justice announced today that two banks, Société Générale Private Banking (Suisse) SA (SGPB-Suisse) and Berner Kantonalbank AG (BEKB), have reached resolutions under the department’s Swiss Bank Program.
“As the agreements reached today confirm, Swiss banks that helped U.S. taxpayers to hide foreign accounts and evade their U.S. tax obligations are providing a detailed account of their cross-border banking activities. The banks are naming officers, employees and others who facilitated this conduct, and providing information that helps us track assets that accountholders moved to other banks and other countries,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “Using information gathered from the banks in this program, we have identified and are investigating individuals, both domestic and foreign, who helped U.S. taxpayers dodge their obligations.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
SGPB-Suisse has had a presence in Switzerland since 1926, and had a U.S.-licensed representative office in Miami from the early 1990s until it closed on Aug. 26, 2013. SGPB-Suisse opened and maintained accounts for accountholders who had U.S. tax reporting obligations, and was aware that U.S. taxpayers had a legal duty to report to the Internal Revenue Service (IRS) and pay taxes on all of their income, including income earned in SGPB-Suisse accounts. SGPB-Suisse knew that it was likely that certain U.S. taxpayers who maintained accounts at the bank were not complying with their U.S. income tax obligations.
SGPB-Suisse’s U.S. cross-border banking business aided and assisted some U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income the clients held in their accounts from the IRS. SGBP-Suisse used a variety of means to assist U.S. clients in hiding their assets and income, including opening and maintaining accounts for U.S. taxpayers in the name of non-U.S. entities, including sham entities, thereby assisting such U.S. taxpayers in concealing their beneficial ownership of the accounts. Such entities included Panama and British Virgin Island corporations, as well as Liechtenstein foundations. In two instances, an SGPB-Suisse employee acted as a director of entities that had U.S. taxpayers as beneficial owners. In another instance, upon the death of the beneficial owner of an entity, the heirs opened accounts held by sham entities at SGPB-Suisse to receive their shares of the assets from the entity account.
SGPB-Suisse further provided numbered accounts, allowing the accountholder to replace his or her identity with a code name or number on documents sent to the client, and held statements and other mail at its offices in Switzerland, rather than sending them to the U.S. taxpayers in the United States. In addition to these services, SGPB-Suisse:
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Processed requests from U.S. taxpayers for cash or gold withdrawals so as not to trigger any transaction reporting requireents;
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Processed requests from U.S. taxpayers to transfer funds from U.S.-related accounts at SGPB-Suisse to accounts at subsidiaries in Lugano, Switzerland, and the Bahamas;
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Opened accounts for U.S. taxpayers who had left UBS when the department was investigating that bank;
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Processed requests from U.S. taxpayers to transfer assets from accounts being closed to other SGPB-Suisse accounts held by non-U.S. relatives and/or friends; and
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Followed instructions from U.S. beneficial owners to transfer assets to corprate and individual accounts at other banks in Switzerland, Hong Kong, Israel, Lebanon, Liechtenstein and Cyprus.
Throughout its participation in the Swiss Bank Program, SGPB-Suisse committed to full cooperation with the U.S. government. For example, SGPB-Suisse described in detail the structure of its U.S. cross-border business, including providing a list of the names and functions of individuals who structured, operated or supervised the cross-border business at SGPB-Suisse; a summary of U.S.-related accounts by assets under management; written narrative summaries of 98 U.S.-related accounts; and the circumstances surrounding the closure of relevant accounts holding cash or gold. SGPB-Suisse also provided information to make treaty requests to the Swiss competent authority for U.S. client account records.
Since Aug. 1, 2008, SGPB-Suisse held and managed approximately 375 U.S.-related accounts, which included both declared and undeclared accounts, with a peak of assets under management of approximately $660 million. SGPB-Suisse will pay a penalty of $17.807 million.
BEKB was founded in 1834 as Kantonalbank von Bern, the first Swiss cantonal bank. BEKB is based in the Canton of Bern and presently has 73 branches in Switzerland. BEKB knew or had reason to know that it was likely that some U.S. taxpayers who maintained accounts at BEKB were not complying with their U.S. reporting obligations. BEKB opened, serviced and profited from accounts for U.S. clients who were not complying with their income tax obligations.
BEKB provided services that facilitated some U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets in those accounts and related income. These services included opening and maintaining numbered accounts, allowing clients to use code names rather than full account numbers and providing hold mail services. BEKB opened accounts for account holders who exited other Swiss banks and accepted deposits of funds from those banks. BEKB also processed standing orders from U.S. persons to transfer amounts under $10,000 from their U.S.-related accounts. In one instance, a relationship manager asked an accountholder, who was a dual Swiss-U.S. citizen living in the United States, about the Foreign Account Tax Compliance Act (FATCA) and voluntary disclosure. When the accountholder failed to execute FATCA-related documents, BEKB took steps to close the account. In connection with that closing, the accountholder withdrew $70,000 and approximately 500,000 Swiss francs in cash.
BEKB committed to full cooperation with the U.S. government throughout its participation in the Swiss Bank Program. As part of its cooperation, BEKB provided a list of the names and functions of 16 individuals who structured, operated or supervised its cross-border business. These individuals served as the chairman of the board of directors, members of the executive board, regional managers, heads of departments or heads of divisions. BEKB additionally provided information concerning its relationship managers and external asset managers, and it described in detail the structure of its cross-border business with U.S. persons, including narrative descriptions of high-value U.S.-related accounts and U.S.-related accounts held by entities.
Since Aug. 1, 2008, BEKB held approximately 720 U.S.-related accounts, which included both undeclared and not undeclared accounts, with total assets of approximately $176.5 million. BEKB will pay a penalty of $4.619 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
“These two resolutions with Société Générale Private Banking (Suisse) SA and Berner Kantonalbank AG represent the ongoing commitment by the IRS and the Department of Justice to ensure that U.S. taxpayers report foreign bank accounts and pay taxes on all income earned from those accounts,” said Deputy Commissioner Douglas O’Donnell of the IRS Large Business & International Division. “We are encouraged by the Justice Department’s program success and look forward to additional information to further our investigations of those who have evaded detection and reporting as well as those who have aided them.”
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“The bank agreements announced today continue to change the landscape in the offshore banking world,” said Chief Richard Weber of IRS-Criminal Investigation. “With each additional agreement, the world where criminals can hide their money is becoming smaller and smaller. Those who circumvent offshore disclosure laws have little room to hide.”
Acting Assistant Attorney General Ciraolo thanked the IRS, in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance, as well as Karen M. Quesnel, who served as counsel on these matters, Senior Litigation Counsel Nanette L. Davis, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Two from Minneapolis Sentenced for Sex TraffickingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that David Nance, age 31, and Ashley Crayton, age 26, of Minneapolis, were sentenced by U.S. District Judge Karen E. Schreier for sex trafficking.
Nance pled guilty to the charge of Transportation for Prostitution on March 19, 2015. He was sentenced on June 8, 2015, to 37 months in custody, followed by 3 years of supervised release.
Crayton pled guilty to the charge of Interstate Travel or Transportation in Aid of Racketeering Enterprise on February 6, 2015. She was sentenced on May 21, 2015, to time served and 2 years of supervised release.
In September of 2014, Sioux Falls police responded to a call from the Red Roof Inn regarding a complaint of possible prostitution activity at the hotel. Several men were observed entering and leaving a specific room in the hotel. Further investigation was completed and the two defendants were subsequently arrested for working together to promote prostitution.
Crayton posted prostitution advertisements on Backpage.com, while Nance provided the transportation, paid for the hotel room, and took all of the money from the prostitution victim in this case.
The case was investigated by the Sioux Falls Police Department and Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Nance was immediately turned over to the custody of the U.S. Marshals Service.Tulare Man Sentenced for Weapon and Drug OffensesRead the Press Release
FRESNO, Calif. — Valentin Aispuro, 38, of Tulare, was sentenced today by United States District Judge Anthony W. Ishii to four years and three months in prison for possession with intent to distribute marijuana and possession of a firearm by a felon, United States Attorney Benjamin B. Wagner announced.
According to court documents, in January 2013, Tulare Police Department detectives obtained search warrants for two residences in Tulare believed to be used by Aispuro and co-defendant Imelda Martin for narcotics sales. During the search, officers found four firearms, 130 pounds of marijuana and cash. Aispuro was a convicted felon and not entitled to possess a firearm.
Both defendants pleaded guilty, and on March 3, 2014, Martin was sentenced to one year and eight months in prison for her role in the offense.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Tulare Police Department. Assistant United States Attorney Michael S. Frye prosecuted the case.
Trafficker Sentenced for Methampthetamine ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced FELIPE DE JESUS JARAMILLO-ROSAS, 29,of Gwinnett County, Georgia, to 56 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine. JARAMILLO-ROSAS previously pled guilty to this charge on February 10, 2015. On May 13, 2015, a co-defendant, LESLIE FAVIOLA-ALVARADO, pled guilty to the same charge and her sentencing hearing is pending.
The investigation revealed that on June 25, 2013, JARAMILLO-ROSAS and FAVIOLA-ALVARADO took possession of 907 grams of methamphetamine from a source of supply in the Atlanta, Georgia, area and began driving to Johnston County, N.C., to deliver the methamphetamine to traffickers. JARAMILLO-ROSAS and FAVIOLA-ALVARADO arrived in Johnston County on June 26, 2013. However, the traffickers decided not to accept the methamphetamine. As JARAMILLO-ROSAS and FAVIOLA-ALVARADO and FAVIOLA-ALVARADO were attempting to deliver the methamphetamine back to the suppliers, the North Carolina Highway Patrol stopped their car in Graham, N.C. The trooper discovered that the driver, JARAMILLO-ROSAS, did not have a valid driver’s license and smelled a strong odor of marijuana from the car. The trooper asked for and received consent to search the car. Troopers located the methamphetamine in two plastic containers in the back seat of the car during the consent search.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office and the North Carolina Highway Patrol. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Southbridge Couple Charged with Manufacturing and Distributing Anabolic SteroidsRead the Press Release
BOSTON –Two Southbridge residents were arrested today for manufacturing and distributing anabolic steroids out of their apartment which doubled as a small laboratory.
Kurt Moisan, 36, and Bobbijo Clark, 42, were each charged with distribution of anabolic steroids, possession with the intent to distribute anabolic steroids, and conspiracy to distribute anabolic steroids. Moisan was additionally charged with manufacturing anabolic steroids. Both were arrested at their Southbridge residence this afternoon.
According to court documents, on three occasions from December 2014 to January 2015, an undercover federal agent purchased anabolic steroids from a website maintained by Moisan and Clark. In February 2105, law enforcement officers executed a search warrant at Moisan and Clark’s Southbridge residence and discovered that they were operating a small laboratory out of their second floor apartment. Agents seized thousands of grams of suspected powdered steroids and hundreds of vials containing suspected liquid steroids. Moisan and Clark admitted to importing raw steroids from China, cooking them into injectable steroid compounds in their apartment, and distributing the steroid compounds through online sales throughout the United States.
The charging statutes provide a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Southbridge Police Chief Daniel Charette, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Ortiz’s Worcester Branch Office.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sixteen Defendants Charged in Federal Court & Six Defendants Charged in State CourtRead the Press Release
United States Attorney James L. Santelle announced today that four indictments were unsealed in federal court charging the following 16 defendants with conspiracy to distribute controlled substances, including crack cocaine and cocaine:
Deron P. GILBERT, age 33
Steven T. HARRIS, age 34
James D. ASHFORD, age 23
Terrence C. JAMISON, age 34
Ronald L. PARKER, age 32
Xavier G. POSTON, age 19
Devon K. THOMAS, age 26
Jerrold A. EZELL, age 26
Julius D. GONZALEZ, age 23
Devonte E. GUERCY, age 22
Rodney L. ROWSEY, age 25
Anthony D. WALTON, age 29
Monta T. BEAMON, age 42
Michael W. THOMAS, age 27
Kyeonta L. AMES, age 20
Jemarcus T. WILLIAMS, age 32All of the defendants except Ames, Beamon, Michael Thomas, and Williams, are charged with offenses punishable by up to life imprisonment, with a mandatory minimum sentence of ten years in prison. Beamon and Michael Thomas are charged with offenses punishable by up to forty years in prison, with a mandatory sentence of five years in prison. Ames and Williams are charged with offenses punishable by up to twenty years in prison. The majority of the suspects arrested were members of the HPT/ATK Street Gang, and all of them operated in Milwaukee County.
On June 9, 2015, law enforcement officers arrested four of these defendants. Six were already in custody. Six are still at large, including: Deron Gilbert, Devonte Guercy, Ronald Parker, Devon Thomas, Michael Thomas, and Jemarcus Williams.
In addition, the following defendants were charged by the Milwaukee County District Attorney’s Office with narcotics and firearms offenses: Kareen Hayes, age 23; Sean Barbosa, age 25; Mitchell Anderson, age 21; Darryl Agnew, age 31; Orell Davis, age 32; and Larrenzo Willis, age 35. All six defendants facing state charges reside and operate in Milwaukee. On June 9, 2015, law enforcement officers arrested two of these defendants. One was already in custody. Three are still at large, including: Larrenzo Willis, Mitchell Anderson, and Darrell Agnew. These cases are being prosecuted by Milwaukee County Assistant District Attorney Megan Williamson.
In making today’s announcement, United States Attorney Santelle stated: “These charges, arrests, and seizures are a part of our continuing work to dismantle drug organizations that threaten the safety and security of neighborhoods in the Eastern District of Wisconsin and elsewhere. These efforts reflect the importance of ongoing collaboration between federal, state, and local law enforcement.” Santelle commended all of the law enforcement officers involved in the investigation.
Acknowledging the collaborative efforts necessary to make today’s roundup a success, Milwaukee County District Attorney John Chisholm commented: “As we have in the past, our local, state, and federal public safety organizations continue to work closely together to identify violent offenders and effectively remove them from our community.”
Milwaukee Police Chief Edward A. Flynn provided the following remarks regarding today’s takedown: “Targeting violent gangs is a core element of our multi-pronged strategy to reduce violence in Milwaukee by focusing on high-hazard groups, individuals, and locations.”
Continuing with the theme of cooperation among law enforcement agencies, FBI Special Agent in Charge Robert Shields provided the following comment: “This case is an outstanding example of multi-jurisdictional cooperation, enabled by the FBI’s Southeastern Wisconsin Regional Gang Task Force, which resulted in the disruption of two violent criminal gangs. The citizens of Milwaukee have the right to feel safe and live free of violence from gangs in their neighborhood.”
The case was investigated by the Federal Bureau of Investigation, Milwaukee Police Department, and the Drug Enforcement Administration. The following agencies also assisted with today’s arrests and search warrants: Bureau of Alcohol, Tobacco, Firearms, and Explosives, Milwaukee County District Attorney’s Office – Investigators and Analyst, Oak Creek Police Department, and West Allis Police Department.
These cases are being prosecuted federally by Assistant U.S. Attorneys Brian Resler and Elizabeth Monfils.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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Short North Posse Fugitive Arrested in North CarolinaRead the Press Release
COLUMBUS, Ohio – Andre M. Brown, aka ‘Paco’, 33, of Columbus, Ohio was arrested this morning by FBI agents in Charlotte, North Carolina. Brown had been a fugitive since October 2014 when he was charged with nine counts in a superseding indictment that related to his role in the Short North Posse. With the arrest of Brown, there are no longer any indicted Short North Posse members at large.
Seventeen individuals were originally indicted in the racketeering case in July 2014. All of the defendants were accused of being an organized criminal enterprise known as the Short North Posse.
Brown was one of three more people indicted in October 2014 in connection with a series of violent crimes including 13 previously unsolved murders as well as other attempted murders, drug trafficking, weapons trafficking, extortion and robbery. The addition to the indictment included an additional 23 felonies, including one murder and nine attempted murders.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs announced the arrest.
The superseding indictment which names Brown alleges that beginning in 2005, members of the enterprise originally referred to themselves solely as the Short North Posse. Later some members began subsets of the Short North Posse referring to themselves as the Cut Throat Committee and later the Homicide Squad. Still within the Short North Posse, Cut Throat Committee and Homicide Squad specialized in murders and robberies of rival gang members, other drug dealers, and targets thought to have large sums of cash or firearms. The Short North Posse also identified themselves nationally with the Crips street gang.
The superseding indictment was a result of a two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, and Franklin County Prosecutor Ron O’Brien’s Office. Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction joined U.S. Attorney Stewart in announcing the original charges.
Brown was charged in the superseding indictment with one count of racketeering conspiracy and three counts of use and discharge of a firearm during and in relation to a crime of violence, each crimes punishable by up to life in prison; one count of attempted possession with intent to distribute cocaine, a crime punishable by up to 20 years in prison; and three counts of possession with intent to distribute and one count of attempted possession with intent to distribute a detectable amount of marijuana, each crimes punishable by up to five years in prison.
Stewart commended Assistant United States Attorneys David DeVillers and Kevin Kelley and Special Assistant United States Attorney Brian Martinez, as well as Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Charges contained in an indictment are allegations. All defendants should be presumed innocent until and unless proven guilty in court.