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17 July 2015
Lake Charles woman pleads guilty to mail fraud in connection with Deepwater Horizon claims schemeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lake Charles woman pleaded guilty Thursday to mail fraud for a scheme to use a seafood restaurant’s employee records to file false Deepwater Horizon settlement claims.
Yvette Kocik, 43, of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi to one count of mail fraud. According to the guilty plea, Kocik approached current and former employees of Steamboat Bill’s seafood restaurant of Lake Charles asking them to use their employee documents so she could file claims on their behalf as part of the Deepwater Horizon BP spill of April 20, 2010. Kocik’s mother owns Steamboat Bill’s, and Kocik performs bookkeeping services for the company. She used the employee documents to fill out forms mailed to the Gulf Coast Claims Facility stating they lost earnings and work hours because of the Deepwater Horizon Oil Spill when they had not. She kept a portion of the proceeds awarded to the employees. The employees received $104,655 for more than 10 claims filed in the course of the scheme, which took place beginning in 2010 to December of 2013.
Kocik faces up to 20 years in prison, one to three years supervised release, a $250,000 fine and restitution. A sentencing date of October 22, 2015 was set.
The FBI investigated the case. Assistant U.S. Attorneys Kelly P. Uebinger and Robert F. Moore are prosecuting the case.
Lake Charles man pleads guilty to wire fraud in 5.8 million Ponzi schemeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lake Charles man pleaded guilty Thursday to wire fraud in connection with a Ponzi scheme used to defraud investors out of more than $5.8 million.
John Steven Blount, 54, of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi to one count of wire fraud. According to the guilty plea, the Financial Industry Regulatory Authority (FINRA) barred Blount from working as an investment advisor in December of 2003. In spite of this prohibition, Blount resumed work illegally as an investment adviser and securities broker from June of 2007 to December of 2014. During that time, he used his company, Professional Consultants LLC, to operate a Ponzi scheme that defrauded at least 73 investors out of approximately $5.8 million. Blount would offer investments in fictitious companies, bonds and IRAs that promised to pay a high rate of return on those investments. Instead of investing the money, Blount transferred the payments into his own bank accounts for his personal use and to support his other business interests.
In order to avoid detection and continue defrauding investors, Blount emailed investors false account statements that purported to show the value of their investments. As necessary, Blount would also provide his victims with monetary payments, which Blount falsely represented to be interest payments or principal withdrawals from the investments. In fact, these “lulling payments” were actually investments Blount received from other victims of the Ponzi scheme. Over the course of the scheme, Blount paid $1,743,198.84 “lulling payments” to investors.
The victims of Blount’s scheme were primarily retirees residing along the Louisiana and Texas Gulf Coast who invested large portions of their retirement savings in Blount’s scheme. Blount recruited his victims through his website, through his own personal and family relationships, and through his involvement in various Lake Charles area charities, including his role as a board member of Moss Bluff Buddy Ball Sports – a 501(c)(3) organization that provides disabled children the opportunity to play sports at no cost to their families.
“Mr. Blount targeted some of the most vulnerable members of our society,” Finley stated. “He has admitted to convincing dozens of retired Gulf Coast residents to invest their life savings or retirement in his Ponzi scheme. He perpetrated his get-rich-quick schemes to circumvent the law and defraud retired residents of their hard-earned money.”
Blount faces up to 20 years in prison, three years of supervised release, a $8,390,283.48 fine and restitution. A sentencing date of October 22, 2015 was set.
The FBI and IRS Criminal Investigations investigated the case. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
Kissimmee Man Pleads Guilty to Dealing in Firearms Without A LicenseRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Colin Knight (54, Kissimmee) yesterday pleaded guilty to dealing in firearms without a license. He faces a maximum penalty of five years in federal prison. Knight has also agreed to forfeit 32 firearms that he possessed or acquired during the commission of the offense. A sentencing date has not been set.
According to the plea agreement, between June 23, 2013, and August 22, 2014, Knight and his adult son, Colin Campbell Joseph Knight, collectively sold 113 firearms and made approximately $63,137 from these firearms sales. During this period, neither Knight nor his son had a Federal Firearms License (FFL) authorizing them to lawfully engage in the business of dealing in firearms. In April of 2014, law enforcement agents visited the Knights at their home in Kissimmee and informed them that their firearms activity appeared to be in violation of federal law. The Knights also signed written notices advising them to cease and desist in the business of dealing in firearms until they obtained the appropriate FFL. Despite these warnings, the Knights continued selling firearms without a license to others, including to an individual that had previously been convicted of a felony.
On August 22, 2014, in a parking lot in Orlando, an undercover agent purchased three firearms from Knight. On this same date, other agents executed a federal search warrant at Knight’s Kissimmee residence and recovered 26 different firearms, along with records and bills of sale confirming that the Knights were engaging in the ongoing sale of firearms without licenses. Knight also admitted to agents that he and his son had acted as partners by purchasing firearms and selling them.
On June 24, 2015, Knight’s son was indicted by a federal grand jury and charged with dealing in firearms without a license and selling a firearm to a convicted felon. He was arraigned in federal court on June 25, 2015. An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Justice Department Reaches Settlement in Civil Rights Lawsuit Against Maricopa County, Arizona, and Maricopa County SheriffRead the Press Release
The Department of Justice’s Civil Rights Division announced today that it has reached a partial settlement in its civil rights lawsuit against Maricopa County, Arizona, and Maricopa County Sheriff Joseph M. Arpaio. The settlement resolves the United States’ claims that the Maricopa County Sheriff’s Office (MCSO) conducted unlawful detentions of Hispanics during worksite raids of local businesses in violation of the Fourth and 14th Amendments, and retaliated against critics of Sheriff Arpaio and MCSO in violation of the First Amendment. The parties have filed a joint motion requesting that the federal district court in Arizona approve and agree to enforce the settlement agreement. The parties also reached a separate settlement resolving the United States’ claim that MCSO failed to provide adequate language access for limited English-proficient Hispanics in MCSO jails in violation of Title VI of the Civil Rights Act of 1964.
“The resolution of these claims, with the important safeguards against future constitutional violations included in these agreements, is in the best interests of the people of Maricopa County,” said Deputy Assistant Attorney General Mark Kappelhoff of the Justice Department’s Civil Rights Division. “The Maricopa County Sheriff’s Office changed many of their practices after the commencement of our litigation, and these agreements ensure that progress continues and the Constitutional rights of the people of Maricopa County will be protected for the long term.”
Under the agreements, MCSO will comply with the following measures, ensuring that its activities comport with federal law and the Constitution:
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Before MCSO may conduct any worksite raids, it must first establish a set of written policies and protocols and submit them to the Civil Rights Division for review, to ensure that the worksite raids comply with all applicable laws and constitutional protections. If MCSO conducts a worksite raid, the Civil Rights Division may request any information and documents to determine whether the operation was conducted consistently with federal law and the Constitution.
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MCSO will prohibit retaliation against individuals engaging in First Amendment protected activity, such as public criticism of Sheriff Arpaio or the MCSO.
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MCSO must ensure that limited English-proficient (LEP) Hispanic inmates in MCSO jails have adequate language access and are protected from unlawful, national origin-based discrimination. These measures include:
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Improving MCSO’s policies and practices for identifying LEP inmates;
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Ensuring that LEP inmates have adequate access to language assistance services, such as bilingual staff, telephonic interpretation services and Spanish-language translations of important written policies and postings in the jails; and
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Requiring that all vital announcements in MCSO facilities be made in both English and Spanish; and
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Requiring MCSO to take reasonable steps to ensure that medical staff are informed if an inmate needing medical attention is LEP and requires language assistance.
As part of today’s agreements, if the Civil Rights Division determines that MCSO is not in substantial compliance with any provision of the agreements, it will attempt to first resolve the issue with MCSO; if the Civil Rights Division is unable to cooperatively resolve the compliance issues, however, it may bring appropriate enforcement actions before the federal district court in Arizona.
Today’s agreements resolve the majority of the claims involved in the division’s lawsuit, filed in May 2013, against Sheriff Arpaio and Maricopa County. That lawsuit alleged four patterns or practices of unconstitutional conduct: (1) discriminatory policing against Hispanic persons in MCSO’s saturation patrols, general traffic enforcement and worksite operations targeting Hispanic immigrants, (2) detentions in violation of the Fourth Amendment during MCSO’s worksite raids targeting Hispanic immigrants, (3) failures in the provision of language access to Hispanic LEP jail inmates and (4) retaliatory police action against critics of Sheriff Arpaio and MCSO. Last month, the federal district court of Arizona granted the United States’ motion for partial summary judgment on its discriminatory policing claim, finding that the United States was entitled to judgment on its claims that MCSO had engaged in discrimination against Hispanics in its enforcement of traffic laws. A remedy on that issue is still to be determined by the court. The parties are in ongoing discussions to resolve the remaining claims in the division’s lawsuit.
The agreements, as well as a description of the division’s previous investigation of and litigation against the Maricopa County Sheriff Arpaio and Maricopa County, will be available at: http://www.justice.gov/crt/about/spl/.
Maricopa Settlement Agreement and Attachment A.pdf (1.03 MB)
Maricopa Proposed Order.pdf (23.54 KB)
Maricopa Joint Motion to Approve.pdf (37.86 KB)
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Judge Sentences Drug Smuggler to 300 Months for Scheme Involving International AirportRead the Press Release
PHILADELPHIA - Edwin Fernandez, 37, of Philadelphia, was sentenced today to 300 months in prison for smuggling cocaine into the United States via Philadelphia International Airport. Fernandez pleaded guilty on January 5, 2015 to all six counts of the indictment including conspiracy to import five kilograms or more of cocaine, importation of five kilograms or more of cocaine, attempted importation of five kilograms or more of cocaine, conspiracy to distribute five kilograms or more of cocaine, and two counts of attempted possession with the intent to distribute five kilograms or more of cocaine. In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered a $5,000 fine, 10 years of supervised release, and a $600 special assessment.
Between December 2011 and July 2012, Fernandez, worked with a Santo Domingo, Dominican Republic drug trafficking organization ("Santo Domingo DTO") to smuggle approximately 150 kilograms of cocaine into the United States through the Philadelphia International Airport. The Philadelphia organization recruited several individuals who worked at US Airways to assist in the operation.
The Santo Domingo DTO employed several individuals, including airport employees in Santo Domingo, to ensure that bags filled with kilograms of cocaine were safely loaded aboard commercial airplanes destined for Philadelphia, PA. After the bags were safely loaded onto the plane in Santo Domingo, members of the Santo Domingo DTO alerted Fernandez who then notified the recruits to assist in the offloading of the bags at the Philadelphia Airport. Once the plane arrived in Philadelphia, the recruited US Airways employees would offload the baggage from the plane and divert the bags with the drugs onto domestic baggage claim belts, rather than the international baggage claim belts. This avoided inspection by United States Customs and Border Protection officials. Fernandez then arranged for those bags to be retrieved from domestic baggage claim belts for distribution to domestic drug organizations.
The case was investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorneys Maureen McCartney and Kishan Nair.
Jefferson Hills Man Sentenced to 14 Years in Federal Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 14 years imprisonment, followed by 15 years of supervised release, on his conviction of distribution of child pornography, United States Attorney David J. Hickton announced today.
Senior United States District Judge Terrence F. McVerry imposed the sentence on Michael Canovali, 50, of Jefferson Hills, Pa.
According to information presented to the court, Canovali was detected distributing images of child pornography. Canovali’s sentence was enhanced because he was found to have engaged in a pattern of sexual activity involving an actual child victim.
Assistant United States Attorney Soo C. Song prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Indiana County District Attorney’s Office, together with Federal Bureau of Investigation for the investigation leading to the successful prosecution of Canovali.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jefferson City Man Indicted for Producing Child Porn, Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was indicted by a federal grand jury today for producing child pornography and for enticing a minor to engage in illicit sex.
Andrew C. Clayton, 37, of Jefferson City, was charged in a three-count indictment returned by a federal grand jury in Jefferson City.
Today’s indictment alleges that Clayton used a minor to produce child pornography on Dec. 18, 2014 and on Dec. 20, 2014. Clayton is also charged with enticing a minor to engage in illegal sexual activity in March 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Cole County, Mo., Sheriff’s Department, the Boone County, Mo., Sheriff’s Department Cyber Crimes Task Force and the Missouri State Technical Assistance Team.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictment Unsealed Charging Five with Child Sex Trafficking in Oklahoma CityRead the Press Release
Oklahoma City, Oklahoma – A federal indictment was unsealed today charging TONYA GUM, TRUNG DUONG, WILLIAM BAKER, RUSSELL EHRENS, and CURTIS ANTHONY with child sex trafficking and conspiracy to commit child sex trafficking, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Defendants were indicted by a federal grand jury on June 16, 2015. The indictment alleges that in October 2014, Ms. Gum, who goes by the name "Carmen," and others operated an escort service that provided females, including 14- and 15-year-old juveniles, to men for prostitution. Mr. Duong, Mr. Baker, Mr. Ehrens, and Mr. Anthony are men who are alleged to have obtained juvenile females for prostitution dates by contacting Ms. Gum.
The indictment alleges that Ms. Gum arranged "dates" for Mr. Duong and Mr. Baker with a 14-year-old girl at their respective residences in October 2014. After each date, the 14-year-old was driven to deliver personally a portion of the proceeds of the commercial sex act to Ms. Gum. The indictment alleges Ms. Gum provided Mr. Anthony with 14- and 15-year-old juveniles in late October 2014. Both girls took off their clothes for Mr. Anthony, and he completed a commercial sex act with the 15-year-old girl. According to court records, Ms. Gum arranged for a 14-year-old girl to go to the residence of Mr. Ehrens on October 15, 2014. After the commercial sex transaction was completed, the girl then delivered the proceeds of the commercial sex transaction with Mr. Ehrens to Ms. Gum.
The indictment was unsealed today after Ms. Gum, Mr. Duong, Mr. Baker, and Mr. Anthony were arrested at their homes yesterday. For child sex trafficking, each of the charged defendants faces a mandatory minimum of ten years and up to life in prison and a fine of $250,000. For conspiracy to commit child sex trafficking, each of the charged defendants faces up to life in prison and a fine of $250,000. Further, the indictment seeks forfeiture from each defendant, including the residences at which the “dates” took place.
This case is the result of an investigation by the Department of Homeland Security and the Oklahoma Bureau of Narcotics Human Trafficking Division. The case is being prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Julia E. Barry.
Reference is made to the indictment and other public filings for further information. An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Idaho Falls Man Pleads Guilty to Federal Drug Related ChargesRead the Press Release
POCATELLO – Gerardo Botello, of Idaho Falls, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement on May 23, 2011, an undercover officer met with Botello at his residence in Idaho Falls, Idaho. At that meeting the undercover officer purchased 53.7 grams of actual methamphetamine from Botello.
Botello’s charge is punishable by ten years to life in prison, a maximum fine of ten million dollars, and at least five years of supervised release.
Sentencing is set for October 21, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led jointly by the Idaho State Police and the Federal Bureau of Investigations, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Alcohol Tobacco and Firearms (ATF), Bonneville County Sherriff’s Office, Idaho Falls Police Department, Idaho State Police, and the Bonneville County Prosecutor’s Office.
The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Gladstone Man, Woman Charged with Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man and woman were charged in federal court today with illegally possessing firearms.
Michael Bellinghausen, 32, and his girlfriend, Tara Childress, 30, both of Gladstone, were charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Bellinghausen and Childress, unlawful users of controlled substances, aided and abetted each other to possess firearms.
According to an affidavit filed in support of today’s criminal complaint, law enforcement officers were investigating the robberies of several Walgreens pharmacies in which oxycodone was stolen. Officers executed a search warrant at the residence shared by Bellinghausen and Childress on Thursday, July 16, 2015. Among the items seized during the search was heroin, methamphetamine, drug paraphernalia and packaging materials, computers and a printer with specialty paper used to print medical prescriptions, two combat-style shotguns, three handguns and ammunition.
During a review of Bellinghausen’s social media accounts that are open and accessible to the general public, investigators found pictures of Bellinghausen and Childress posing with various firearms, including assault weapons and one handgun that appeared to be fitted with a sound suppressor. One such photograph is labeled with the word “HITMAN” as Bellinghausen poses menacingly with a pistol in each hand.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Charles E. Ambrose, Jr. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Independence, Mo., Police Department.
Former United States Congressman Michael Grimm Sentenced to Eight Months for Tax FraudRead the Press Release
Earlier today in federal court in Brooklyn, former United States Congressman Michael Grimm was sentenced to a term of incarceration of eight months of incarceration in connection with his conviction for aiding and assisting the preparation of a false tax return. Grimm served as a member of the United States House of Representatives representing New York’s 11th Congressional District, which includes the borough of Staten Island and parts of the borough of Brooklyn, from January 2011 to January 2015. Grimm was sentenced by the Honorable Pamela K. Chen, United States District Judge, Eastern District of New York. The Court also sentenced the defendant to 200 hours of community service.[1]
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Richard Weber, Chief, IRS- Criminal Investigation.
“This prosecution and sentence should be a reminder to those in positions of trust that we and our partners in the FBI and IRS will vigorously pursue whomever commits fraud,” said Acting U.S. Attorney Currie. Mr. Currie expressed his grateful appreciation to the Public Integrity Section of Department of Justice, the Northern Criminal Enforcement Section of the Tax Division of the Department of Justice, the New York State Insurance Fund, the New York State Department of Taxation and Finance, and the New York State Department of Labor for their assistance in the investigation.
FBI Assistant Director-in-Charge Rodriguez stated, “Grimm didn’t serve his community with honor; he instead engaged in criminal activity to the detriment of the public trust. Today’s sentence should send a message that this type of behavior will not be tolerated, especially when public officials break the law. The FBI and our partners at the IRS will continue our efforts to identify fraudulent practices carried out by elected representatives and free the system from the consequences of their actions.”
“Former Congressman Grimm made a conscious decision to break the law and benefit personally by underreporting $900,000 in restaurant gross receipts and lowering payroll taxes through 'off-the-book' payments, then lying under oath to conceal his criminal activity,” said IRS-Criminal Investigation Chief Weber. “Tax crimes are not victimless crimes and Grimm’s actions harmed the very citizens he was elected to serve. We expect all taxpayers to follow the law—whether you are a business owner, individual, or elected official—we all must play by the same rules.”
In connection with his guilty plea on December 23, 2014, Grimm entered into a stipulation of facts acknowledging the scope of his criminal conduct. As part of that stipulation of facts, Grimm admitted that:
- From 2007 through 2009, Grimm was a member in Healthalicious, a Manhattan restaurant. During that time period, Grimm oversaw the day-to-day operations of the restaurant, which included the reporting and distribution of the restaurant’s payroll.
- Grimm under-reported the true amount that Healthalicious earned, using a portion of those unreported receipts to pay the restaurant’s workers “off the books” in cash. With Grimm’s knowledge, the restaurant employed those who were not lawfully admitted to the United States and who were not authorized to work in this country.
- In total, Grimm concealed over $900,000 in Healthalicious’ gross receipts from the accountant who prepared and filed the restaurant’s tax returns. That accountant used the false information provided by Grimm to prepare and file false federal and state tax returns for Healthalicious.
- Grimm also failed to report the “off the books” cash wages he was paying to Healthalicious workers, which resulted in the restaurant paying lower federal and state payroll taxes. Some Healthalicious employees received at least half of their wages in cash, while other workers were paid entirely in cash. Grimm tracked these payments in electronic spreadsheets, but failed to provide accurate information about the restaurant’s payroll to the payroll processing companies employed by the restaurant. As a result, Grimm caused the payroll processing companies to report to the IRS and the NYS Tax Department less than half of the wages Healthalicious actually paid its employees.
- Additionally, Grimm under-reported Healthalicious’ payroll to the New York State Insurance Fund (“NYSIF”), lowering the monthly workers’ compensation premium the restaurant paid to NYSIF.
- As part of his scheme, Grimm caused numerous false documents to be filed with federal and state tax authorities between 2007 and 2010. In total, Grimm’s conduct caused federal and New York State tax and NYSIF premium losses between $80,000 and $200,000.
- While a Member of Congress in January 2013, Grimm was deposed under oath by the attorney of a former employee in connection with a civil lawsuit relating to the labor practices at Healthalicious in which Grimm was a defendant. The lawsuit was pending in the United States District Court for the Southern District of New York. Grimm admitted to testifying during the deposition to things that, at the time, he knew to be false. Specifically, Grimm testified during the deposition that Healthalicious employees had not been paid in cash, when he knew that restaurant employees had in fact been paid “off the books” in cash. Similarly, Grimm testified that, to the extent he used email in operating Healthalicious, he used a Yahoo account to which he no longer had access. Grimm also admitted that, at the time of the deposition, he in fact had access to an AOL account which he had used for Healthalicious related business and which contained many emails related to the restaurant.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys James Gatta and Nathan Reilly are in charge of the prosecution.
The Defendant:
MICHAEL GRIMM
Age: 45
Staten Island, New YorkE.D.N.Y. Docket No. 14-CR-248 (PKC)
[1]In addition to the term of incarceration, the Court ordered Grimm to pay restitution to the Internal Revenue Service (IRS), the New York State Department of Taxation and Finance, and the New York State Insurance Fund (NYSIF) in a total amount to be determined after sentencing.
Former U.S. Marine Charged with Stealing Identities of Fellow Service Personnel in Scheme to Defraud Navy Federal Credit Union of More Than $138,000Read the Press Release
CHICAGO — A former United States Marine from Calumet City stole the identities of several fellow Marines and used their information to illegally procure more than $138,000 from Navy Federal Credit Union, according to an indictment returned this week in federal court in Chicago.
While serving in Combat Logistics Regiment 3 at Camp Foster in Okinawa, Japan, LEONARD E. PARKER JR. obtained a Marine roster containing the personal information of several fellow Marines stationed at the camp, according to the indictment. After returning to the United States, Parker and a co-defendant, DONTREAL S. EVANS, allegedly used the Marines’ information to transfer approximately $138,798 from the Marines’ accounts into bank accounts belonging to individuals Parker and Evans had recruited into the scheme.
Parker and Evans offered to pay those individuals to allow Parker and Evans to control and access the accounts, the indictment states. The pair later withdrew funds and made purchases from the accounts they controlled, and kept the proceeds from the scheme, according to the indictment. Parker also allegedly filed false tax returns in the names of Marines whose personal information was on the roster.
The indictment, which was returned Thursday, charged Parker, 24, of Calumet City, with five counts of financial institution fraud; one count of aggravated identity theft; and four counts of filing false claims against the United States. Evans, 21, of Lansing, was charged in the indictment with three counts of financial institution fraud. The defendants’ arraignment in U.S. District Court in Chicago has not yet been scheduled.
Each count of financial institution fraud carries a maximum sentence of 30 years in prison, a $1 million fine and mandatory restitution. If convicted of aggravated identity theft, Parker also would face a mandatory, consecutive term of two years in prison. Each count of filing false claims carries a maximum sentence of five years in prison, a $250,000 fine, and mandatory restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Stephen Boyd, Special Agent in Charge of the Internal Revenue Service Criminal Investigation in Chicago.
The investigation is ongoing.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Special Assistant U.S. Attorney Heidi Manschreck.
Indictment
Former Loan Officer Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – JOSEPH BROGAN was sentenced to 14 months in prison on multiple fraud charges related to a scheme involving applications for home loans.
According to court documents, Joseph Brogan was employed as a loan officer for USA Mortgage, Inc. where he handled both conventional mortgages and FHA loans. Michael Wallis owned and operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses. Brogan, Wallis and others conspired to obtain loan funds by making false and fraudulent representations on home loan documents, including misrepresenting the source of down payments and misrepresenting remodeling expenses on HUD-1 forms and related loan documents. Brogan admitted that on at least one occasion he provided $8,000 in funds toward a down payment, while knowing the loan forms and supporting documents falsely represented that the funds came from the nominal purchaser or a relative of the nominal purchaser. Wallis’ company, Missouri Builders, received disbursements of loan funds based on the false HUD-1 forms and based on false invoices for remodeling expenses. Wallis then paid Brogan from the illegally obtained loan funds. Over the course of the conspiracy, Brogan received approximately $94,948 in payments from Wallis.
Brogan, St. Louis, Missouri, pled guilty in January before U.S. District Judge Audrey G. Fleissig to one felony count of conspiracy to commit bank fraud and two felony counts of bank fraud. He was also ordered to pay more than $350,000 in restitution.
This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Former IRS Employee and Three Others Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
PENSACOLA, FLORIDA – Four Pensacola residents, including a former IRS tax examiner, have been sentenced to prison for conspiring to file false claims for payment in connection with the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. The sentences were announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
On June 30, 2015, Rosa M. Bonner, 52, and Ariyanna S. Lampley, 33, were sentenced to 27 months and 48 months in prison respectively. Both pled guilty on April 8, 2015. On July 16, 2015, Jimmie A. McCorvey, 41, and Marcia D. McCorvey, 42, were sentenced to 72 months and 12 months and one day in prison respectively. Jimmie McCorvey pled guilty on April 30, 2015, and Marcia McCorvey pled guilty on May 7, 2015.
During their guilty pleas, the defendants admitted their participation in a conspiracy to commit mail fraud. The conspiracy involved the filing of false claims with the Gulf Coast Claims Facility (“GCCF”) alleging lost income as a result of the 2010 Deepwater Horizon spill. Between 2010 and 2012, the defendants agreed to have Jimmie McCorvey file false GCCF claims in their names and other names provided by Lampley, seeking more than $327,000 in payments for alleged lost earnings and profits as a result of the spill. Jimmie McCorvey fraudulently used Pensacola addresses to indicate that all claimants lived and worked in Pensacola. As a result of these false claims, GCCF paid $95,200 to the defendants.
Jimmie McCorvey, who was an IRS employee at the time, also admitted to conspiring with Lampley and others to prepare and file approximately 25 fraudulent federal income tax returns between 2009 and 2011, resulting in the issuance of more than $62,000 in tax refund checks. The fraudulently obtained tax refund checks were deposited in bank accounts controlled by Lampley, who paid Jimmie McCorvey a portion of each check. Jimmie McCorvey also pled guilty to aggravated identity theft for fraudulently using other people’s identities in both schemes.
This case resulted from investigations by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and was prosecuted by Assistant United States Attorney Alicia Kim.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Former Health Care Center Nursing Supervisor Sentenced for Selling Fentanyl and Other Pain KillersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul announced today that Catherine Vitello, 42, of Elma, NY, who was convicted of possession with intent to distribute and distribution of hydrocodone and fentanyl, was sentenced to three years probation to include one year home detention by U.S. District Judge Richard J. Arcara.“As this case demonstrates, high potency and highly dangerous prescription drugs can enter the stream of illegal commerce in a number of ways, including from those in the healing professions,” said U.S. Attorney Hochul. “This Office will continue to prosecute all who traffic in such sometimes lethal substances, regardless of title or position.”
Assistant U.S. Attorney John M. Alsup, who handled the case, stated that the defendant was the Director of Nursing at the St. Catherine Laboure Health Care Center in Buffalo. Vitello sold un-used prescription drugs from her office. These drugs were prescribed for patients but were no longer needed for various reasons, including the death of the patient in some cases. The prescription narcotics included hydrocodone and fentanyl. On at least two separate occasions in October 2013, the defendant sold hydrocodone and fentanyl to a confidential source working with the Drug Enforcement Administration.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Office, the Lackawanna Police Department, under the direction of Chief James Michel, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Former Gates Mills postmaster charged with stealing more than $55,000Read the Press Release
The former postmaster of the Gates Mills Post Office was charged today with theft of property used by the U.S. Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service -- Office of Inspector General, Eastern Area Field Office.
Ann Apana, 66, of Maple Heights, Ohio, was charged by criminal information with a single count of theft of property used by the U.S. Postal Service.
The information charges that from at least June 12, 2009 until June 15, 2014, as part of a continuing course of conduct, Apana stole approximately $38,741.42 in money and merchandise from the Postal Service and made approximately $18,341.08 in unauthorized purchases of postage using customers’ credit card information.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Miranda E. Dugi following an investigation by special agents of the U.S. Postal Service -- Office of Inspector General.
Former Buffalo Employee Sentenced for Theft of Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Tasha Collier, 39, of Buffalo, NY, who was convicted of theft and conversion concerning programs receiving federal funds, was sentenced to three years probation and directed to make restitution to the City of Buffalo in the amount of $22,292.50 by Chief U.S. District Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Joseph M. Guerra, who handled the case, stated that the defendant was employed as a clerk in the Licensing Department of the City of Buffalo between July 2013 and August 25, 2014. As part of her duties as a clerk, Collier was responsible for collecting payments in cash and by check for licenses issued by the City of Buffalo. Between September 2013 and August 2014, the defendant stole approximately $22,000 in cash, funds that were supposed to be remitted to the City Treasury Department.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Five People Sentenced to Federal Prison for Meth-Distribution ConspiracyRead the Press Release
Five men have been sentenced to federal prison for their roles in a methamphetamine distribution conspiracy.
Billy Lee Jaime Huerta, age 31, of Mason City, Iowa, received his prison term after a December 10, 2014, guilty plea; David Luiz Lee Huerta, age 27, of Mason City, Iowa, received her prison term after a March 25, 2015, guilty plea, Steven Andrew Davis, age 32, of Stockton, California, received his prison term after a January 26, 2015, guilty plea, Michael Angelo Sanchez Moreno, age 25, of Stockton, California, received his prison term after a December 3, 2014, guilty plea, and Francisco Mora-Martinez, age 29, of Stockton, California, received his prison term after a February 2, 2015, guilty plea. Billy Huerta, David Huerta, Davis, Moreno, and Mora-Martinez each pled guilty to conspiracy to distribute methamphetamine. David Huerta and Steven Davis each also pled to Distributing a Controlled Substance. Billy Huerta was previously convicted of a felony drug offense in Cerro Gordo County, on July 7, 2008.
Information provided by the United States at the sentencing’s and change of plea hearings show the defendants were involved in a conspiracy in which David Huerta and Steven Davis were bringing from California and/or mailing pound quantities of methamphetamine to the Mason City area and along with Billy Huerta and Michael Moreno reselling it to others. During his involvement in the conspiracy, Francisco Mora-Martinez was responsible for facilitating the distribution of more than 150 grams of pure methamphetamine. The conspiracy lasted from August 2010 to October 2014, in the Mason City and Clear Lake, Iowa area.
Billy Huerta, David Huerta, Davis, Mora-Martinez, and Moreno, were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Billy Huerta was sentenced to 240 months’ imprisonment, David Huerta was sentenced to 135 months’ imprisonment, Davis was sentenced to 121 months’ imprisonment, and Mora-Martinez and Moreno were each sentenced to 120 months’ imprisonment. Billy Huerta must serve a 10-year term of supervised release after the prison term. David Huerta, Davis, Mora-Martinez, and Moreno must each serve a 5-year term of supervised release after prison. David Huerta, Steven Davis, and Michael Moreno, were each ordered to pay a $200 special assessment. Billy Huerta and Mora-Martinez were each ordered to pay a $100 special assessment. There is no parole in the federal system.
All five are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, Clear Lake Police Department, and Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-3054.
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Five Defendants Convicted of Conspiring to Obtain Commercial Driver’s Licenses from the Department of Motor Vehicles Through Fraud and BribesRead the Press Release
Earlier today, after a three-day trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Dale Harper, Joachim Pierre Louis, Luc Desmangles, Beayeah Kamara, and Tanael Daniel for their participation in a scheme to enable applicants for commercial driver’s licenses (CDLs) to cheat on required tests for those licenses in exchange for money. When sentenced by United States District Judge Raymond J. Dearie, the defendants each face a sentence of up to 20 years in prison.
The guilty verdicts were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, New York State Inspector General Catherine Leahy Scott, Raymond R. Parmer, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York (HSI), and Douglas Shoemaker, Department of Transportation, Office of the Inspector General (DOT-OIG), Regional Special Agent-in-Charge.
The evidence at trial demonstrated that drivers of certain commercial vehicles, such as school buses, tractor trailers, vehicles transporting hazardous waste, ambulettes, and heavy transportation trucks, must possess a CDL, which is issued by the DMV, pursuant to the regulations set forth by the United States Department of Transportation. Before obtaining a CDL, all applicants must pass tests covering various subjects related to safely driving such large vehicles. The defendants Daniel, Harper, Pierre Louis, and Desmangles brought CDL applicants to the DMV office on Greenwich Street in Manhattan. After applicants entered the testing area, the defendant Kamara, who was employed as a security guard, signaled to the applicants to leave the testing area with their answer sheets. Upon leaving the testing area, those applicants were met by Daniel, Pierre Louis, and Desmangles, who took the exam to be completed by another co-conspirator, Marie Daniel, outside the DMV office.[1] The test was then returned to the applicant, who re-entered the DMV office and submitted the exam for grading. Kamara received cash bribes for his role in the scheme. The applicants were charged approximately $1,400 to $2,500 for the defendants’ assistance with cheating on the CDL exam. The evidence further showed that the defendants enabled over 40 people to fraudulently obtain or attempt to obtain CDLs, during the period April 1, 2013 through September 25, 2013.
“Today’s verdict demonstrates our commitment to aggressively prosecute and investigate anyone who compromises public safety,” stated Acting United States Attorney Currie. “The greed of these defendants jeopardized passengers and pedestrians on our roads. Together with our law enforcement partners, we will bring to justice those who endanger the public by committing such crimes.”
“These individuals chose corruption and greed over the safety of the general public,” said Inspector General Leahy Scott. “These convictions send a message to those who put innocent people at risk as a result of their criminal acts … they will be investigated and prosecuted. I will use the full force of my office to relentlessly pursue anyone who violates the public trust and resorts to criminal measures to circumvent laws intended to ensure that those who are licensed by the State of New York are properly qualified to drive on our highways.”
“These individuals convicted today jeopardized public safety by using fraudulent means to obtain commercial driver’s licenses that would have given the defendants the ability to drive school buses and other large vehicles,” said HSI New York Special Agent-in-Charge Parmer. “HSI will work with our law enforcement partners and use every tool at our disposal to arrest those who threaten public safety of any variety."
“As evidenced by the guilty verdicts handed down against Dale Harper, Joachim Pierre Louis, Luc Desmangles, Beayeah Kamara, and Tanael Daniel, ensuring safety on the Nation’s roadways remains a high priority for both the Office of Inspector General (OIG) and the Department of Transportation,” said DOT OIG Regional Special Agent-in-Charge Shoemaker. “Working with our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to prevent, detect, and prosecute violations of laws and regulations, CDL and otherwise, designed to ensure the public’s safety.”
Mr. Currie expressed his grateful appreciation to the Office’s partners in the investigation, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), the U.S. Department of Transportation-Office of Inspector General (DOT-OIG), and the Office of the New York State Inspector General (NYS-OIG). In addition, Mr. Currie thanked the New York State Attorney General’s Office; the New York City Police Department, Internal Affairs Bureau; New York County District Attorney’s Office; and the New York State Department of Motor Vehicles for their cooperation and assistance in the investigation.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Michael Warren and Lauren Howard Elbert are in charge of the prosecution.
The Defendants:
DALE HARPER
Age: 49
Residence: Bronx, New YorkJOACHIM PIERRE LOUIS
Age: 33
Residence: Brooklyn, New YorkLUC DESMANGLES
Age: 28
Residence: Brooklyn, New YorkBEAYEAH KARMARA
Age: 26
Residence: Staten Island, New YorkTANAEL DANIEL
Age: 37
Residence: Brooklyn, New York
[1] In January 2015, Marie Daniel pled guilty for her role in this scheme.
Federal Grand Jury Files Indictment Charging Kevin Folse with Firearms and Carjacking ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD) announced today that a federal grand jury has filed an indictment charging Kevin Folse, 30, of Albuquerque, N.M., with firearms and carjacking charges.
Folse made his initial appearance in federal court on the three-count indictment this morning. He was remanded into the custody of the U.S. Marshals Service and will be detained pending trial.
Folse initially was charged on July 6, 2015, by criminal complaint with being a felon in possession of a firearm and ammunition. The indictment subsequently was filed on July 14, 2015, and charged Folse with (1) being a felon in possession of a firearm, (2) carjacking, and (3) brandishing a firearm during a crime of violence. The indictment alleges that Folse committed the three crimes on July 2, 2015, in Bernalillo County, N.M.
Court filings allege that between June 30, 2015 and July 2, 2015, Folse committed a number of violent crimes as he eluded arrest by APD officers. On the morning of July 2, 2015, Folse allegedly threw a semiautomatic pistol out of a vehicle he was driving while being pursued by APD officers. APD officers subsequently recovered the firearm from an individual who was working in the vicinity of the area that the firearm was thrown. Folse allegedly wrecked the vehicle he was driving and continued his flight on foot. APD officers then observed Folse allegedly commit a carjacking and flee in the carjacked vehicle.
According to court records, Folse was prohibited from possessing firearms or ammunition on July 2, 2015, because he was a convicted felon. Court records reflect that Folse had been convicted for receiving or transferring a stolen vehicle, marijuana trafficking, and aggravated battery with a deadly weapon and being a felon in possession of a firearm.
Folse was arrested in the late night hours of July 3, 2015, by officers of the Isleta Pueblo Tribal Police Department. Folse remained in state custody on related state charges until today when he was transferred to federal custody. The state charges against Folse will be dismissed in favor of federal prosecution.
If convicted of the charges in the indictment, Folse faces a statutory maximum penalty of ten years in federal prison for unlawfully possessing a firearm and ammunition and ten years on the carjacking charge. If convicted for brandishing a firearm during a crime of violence, Folse faces a statutory mandatory minimum of seven years in prison which must be served consecutive to any sentence imposed on the felon in possession and carjacking charges. Charges in criminal complaints and indictments are mere accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the ATF office in Albuquerque and APD with assistance from the Isleta Pueblo Tribal Police Department and the Second Judicial District Attorney’s Office. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
This case 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. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Douglas D. Jackson Found Guilty by Jury TrialRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Douglas D. Jackson, 26, of South Bend, Indiana, was found guilty on July 16, 2015, after four-day jury trial, of six counts of sex trafficking a minor and one count of possessing a firearm in furtherance of a crime of violence.
According to the evidence presented at trial, Jackson transported a minor female to Atlanta, Georgia; Louisville, Kentucky; and Grand Rapids, Michigan for purposes of prostitution in June, 2014. He was arrested in Grand Rapids, Michigan on June 14, 2014 and charged with state offenses in Michigan. That state prosecution was dropped in favor of the Indiana federal prosecution when the investigation revealed that Jackson had transported the minor to other states from South Bend, Indiana
Sentencing for Jackson is scheduled for October 22, 2015. The six counts of sex trafficking a minor each carry 10 year mandatory minimum sentences, and the firearm count is a five year mandatory minimum consecutive sentence. Any specific sentence to be imposed will be determined by the judge after a consideration of the federal sentencing statutes and federal sentencing guidelines.
This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of the Michigan State Police and the Wyoming Michigan Police. This trial was handled by Assistant United States Attorney John M. Maciejczyk
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District Man Sentenced to 94 Months in Prison for Armed Robbery and Failing to Register as a Sex OffenderRead the Press Release
WASHINGTON – Jamal Skinner, a.k.a. Shakir Skinner, 22, of Washington, D.C., was sentenced today to 94 months in prison on charges stemming from an armed robbery, as well as for failing to register as a sex offender, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Skinner pled guilty in November 2014, in the Superior Court of the District of Columbia, to armed robbery, unlawful possession of a firearm, and failure to register as a sex offender. He was sentenced by the Honorable Milton C. Lee. Following his prison term, Skinner will be placed on five years of supervised release. He remains obligated to register as a sex offender in the District of Columbia for the rest of his life.
According to the government’s evidence, Skinner was convicted in 2009 of aggravated sexual battery in Prince William County, Va., based on his sexual assault of a five-year-old child. Following his release in that case, he moved to Maryland. He was obligated to register as a sex offender in Maryland, but failed to do so, and he was convicted of failure to register as a sex offender in Prince George’s County, Md., in 2011 and 2013. Skinner thereafter moved to the District of Columbia and in March of 2013, he was notified of his obligation to register as a sex offender there. However, he failed to provide the registry with his actual home address.
The robbery took place on April 20, 2014. At about 2 a.m., Skinner approached a couple while they were parking their car in the 2600 block of Jasper Street SE. He brandished a gun and ordered the couple out of the car and onto the ground. He took their cellphones and jewelry, as well as the female victim’s purse and the keys to the vehicle. He then stole their car and fled, but was apprehended a short time later.
The Adam Walsh Child Protection and Safety Act of 2006 designated the U.S. Marshals Service as the federal agency responsible for assisting state and local authorities in the apprehension of non-compliant sex offenders. The U.S. Marshals Service National Sex Offender Targeting Center collaborates with the National Center for Missing and Exploited Children and the Department of Justice’s Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking Office to support all levels of law enforcement in pursuing unregistered and non-compliant sex offenders.
In announcing the sentence, Acting U.S. Attorney Cohen, Chief Lanier, and U.S. Marshal Hughes praised the work of Senior Inspector Floriano Whitwell and other members of the D.C. Superior Court Sex Offender Investigations Section of the U.S. Marshals Service, as well as members of the Metropolitan Police Department’s Sixth and Seventh Districts, who investigated the robbery case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donhue Troy Griffith and Daphne Nelson, Victim/Witness Advocate Jennifer Clark, and Witness Security Specialist Supervisor Michael Hailey. Finally, they commended the work of former Assistant U.S. Attorney Melinda Williams and Assistant U.S. Attorney Emily Miller, who assisted with the investigation, as well as Assistant U.S. Attorneys Mark Aziz and Sarah McClellan, who prosecuted the case.
District Man Pleads Guilty to Sexually Abusing and Assaulting Former GirlfriendRead the Press Release
WASHINGTON – Nicholas White, 26, of Washington, D.C., pled guilty today to sexually assaulting his former girlfriend earlier this year in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
White pled guilty in the Superior Court of the District of Columbia to one count of third-degree sexual abuse, one count of contempt, and one count of assault. The Honorable Lynn Leibovitz scheduled sentencing for Sept. 11, 2015. In addition to facing prison time, White will be required to register as a sex offender for 10 years.
According to the government’s evidence, White and the victim began dating while in college and moved in together following the victim’s graduation. During the course of their relationship, White physically assaulted the victim on several occasions, with the nature of the domestic violence escalating over time. The victim eventually ended their relationship on March 11, 2015, and began making efforts to move out of the apartment in Northwest Washington. An argument took place two days later on March 13, 2015, that culminated in White physically and sexually assaulting the victim inside the apartment.
On that day, White and the victim were involved in an argument over the use of the victim’s car. During the argument, White kicked the victim twice on her leg, smashed her work laptop across his knees, and took her cell phone and placed it on top of a kitchen cupboard in an attempt to prevent the victim from accessing it. While White was in another room, the victim took the phone and reported the assault to a friend.
White then discovered that the victim had used her phone, at which point he pushed her onto a bed and began striking her in the head and pressing his leg into her knee with such force that the victim’s kneecap slid to the side of her leg. Seeing this, White then grabbed the victim’s kneecap and attempted to place it back into its original position. As the victim lay in the bed, White removed her clothing and raped her. The victim attempted to push him away during the sexual assault but was unsuccessful. She ultimately left the apartment to call the police for help.
During the pendency of this case, White was ordered not to contact the victim in any manner, including through a third party. Despite this judicial order, he directed his father to provide the victim with a “sob story” in the hopes that she would no longer cooperate with the authorities. The defendant’s father sent the victim a text message later that same day, stating that White was, among other things, “frightened,” “alone,” “sad,” and “sorry.” The text message did not dissuade the victim from cooperating in the investigation, and her involvement helped secure the defendant’s guilty plea in this case.
In announcing the guilty plea, Acting U.S. Attorney Cohen commended the work performed by those who investigated the case from the Metropolitan Police Department’s Second District and Sexual Assault Unit. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Troy Griffith and Erica Vample; Victim/Witness Advocates Meshall Thomas and Maria Shumar; Criminal Investigator John Marsh, and Legal Intern Emma McArthur. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Danny Nguyen and Natasha Smalky, who investigated and prosecuted the matter.
Derry Man Indicted on Charges Related to Sales of Synthetic CannabinoidsRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced today that a federal Grand Jury has returned a five-count indictment against Tony Aoude, 44, of Derry, New Hampshire that charges him with various offenses related to the sales of synthetic cannabinoid products.
The indictment charges Aoude with Distributing a Controlled Substance (AB-FUBINACA), Conspiracy to Violate the Travel Act, and Conspiracy to Receive Misbranded Products, as well as separate violations the federal Travel Act and the federal misbranding statute.
According to the indictment, in 2013 and 2014 Aoude sold synthetic cannabinoid products at stores in Londonderry and Hooksett, New Hampshire. The indictment alleges that the products contained XLR11 and AB-FUBINACA, which are illegal controlled substances. The indictment alleges that these products were sold in packages with false and misleading labels that stated that the products were “not for human consumption” or were “legal in 50 states.” Additionally, the indictment alleges that Aoude was advised by a co-conspirator that the products were unlawful in Florida. According to the indictment, Aoude and a co-conspirator arranged to sell quantities of synthetic cannabinoids to individuals who planned to sell the products in Florida.
Synthetic cannabinoids are green leafy materials that have been sprayed with chemicals. These products (commonly referred to as “spice” or “K2”) are often marketed as incense or potpourri. As in this case, the packaging materials often contain attractive logos that are designed to appeal to young people. Although the products are often identified as “not for human consumption,” the products are smoked in order to obtain a high. The chemicals that are sprayed on the products to produce the high are often illegal controlled substances or analogues of illegal controlled substances. The ingestion of these types of illegal products has caused some users to experience a variety of medical side effects and has led to numerous hospitalizations.
An arraignment date has not yet been scheduled.
The charge of distributing controlled substances is subject to a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine. The misbranding charge is subject to a maximum penalty of three years in prison, one year of supervised release, and a fine of up to $250,000. The remaining three charges each carry a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Drug Enforcement Administration’s Tactical Diversion Squad led the investigation in collaboration with the U.S. Postal Inspection Service and Homeland Security Investigations. The investigators also received the invaluable assistance of DEA-NH/HIDTA and DEA’s Air Wing, the New Hampshire and Massachusetts State Police, the U.S. Marshals Service, Portsmouth Police Department, Somersworth Police Department, Kingston Police Department, the Dover Police Department, the Londonderry Police Department, and the York and Kittery, Maine Police Departments. It is being prosecuted by Assistant United States Attorney John J. Farley.
DeRidder woman sentenced to 51 months in prison for stealing more than $1.3 million from companyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a DeRidder woman was sentenced Thursday to 51 months in prison for stealing more than $1.3 million from her former employer.
Lisa H. Ernst, 52, of DeRidder, La., was sentenced by U.S. District Judge Patricia Minaldi on one count of wire fraud. She was also sentenced to three years of supervised release and ordered to pay $1,351,259.86 in restitution. According to evidence presented at the March 31, 2015 guilty plea, Ernst stole $1,351,259.86 from a company located in Deridder where she worked from May 13, 2003 to March 4, 2014 in various capacities in the accounting department, including as an assistant manager. She made approximately 142 direct interbank transfers from the company’s bank account to her personal bank accounts. In addition to taking the money, she made false representations to her subordinates and supervisors in order to secure approval for the bank transfers, and then after transferring the money, she fabricated documents to conceal fraudulent transactions.
“Ms. Ernst abused the position of trust that was given to her by her employer, a company that made significant contributions to our community,” Finley stated. “Now she will spend the better part of the next five years in prison paying for her crime. This sentence should serve as a deterrent to others tempted to make easy money through corporate theft.”
The FBI and the DeRidder Police Department conducted the investigation. Assistant U.S. Attorneys Joseph T. Mickel and David C. Joseph prosecuted the case.
Couple Indicted for Sinkhole FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Glenn (64) and Kathryn (63) Jasen, both of Spring Hill, with wire fraud, a federal felony. If convicted, they each face a maximum of 20 years in prison.
According to the indictment, the Jasens owned a home in Spring Hill, Florida. They detected a sinkhole on the property and made a sinkhole claim to their insurer, Citizens Insurance. Instead of repairing the sinkhole with the funds received from the insurer, the Jasens accepted the insurer’s check and deposited it into a bank account. Thereafter, the Jasens put the home up for sale. In the real estate disclosures given to the purchaser of the house, the Jasens lied about the existence of the sinkhole, and the fact that they had previously made a sinkhole claim on the property.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
“The Florida Department of Law Enforcement is committed to investigating financial crimes that personally impact the citizens of the State of Florida. We will continue to work with the prosecutorial team to bring these criminals to justice,” said Special Agent in Charge Rick Ramirez, Tampa Bay Regional Operations Center.
This case was investigated by the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Thomas N. Palermo.
Colombo Crime Family Captain and Two Associates Charged in Racketeering Conspiracy IndictmentRead the Press Release
A ten-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Luca DiMatteo and his nephew, Lukey DiMatteo, with racketeering conspiracy, extortion, loansharking, and operating an illegal gambling business. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on July 9, 2015, and relates to the defendants’ alleged criminal activities in Brooklyn and elsewhere between January 2009 and June 2015.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As alleged in the indictment and detention memorandum, Luca DiMatteo is a long-time member of the Colombo organized crime family of La Cosa Nostra, and has served for several years as the acting captain in charge of a crew of the crime family’s members and associates.
As alleged, both Luca DiMatteo and Lukey DiMatteo participated in the extortion of a local business owner for more than ten years that lasted until the business owner closed down the business last month. The business owner paid the DiMatteos $100 to $200 every two weeks based on his fear of these defendants and the potential consequences of not paying. The DiMatteos are also charged separately in loansharking counts. Lukey DiMatteo is separately charged in an additional extortion count, as well as in counts alleging the operation of illegal gambling businesses – based on his operation of a gambling club in Brooklyn, along with co-defendant John Shields and others – and sports betting.
“Along with our partners at the FBI, we are committed to defeating organized crime,” stated Acting United States Attorney Currie. “We will not tolerate the use of violence or threats of violence to extort local business people, and we will shut down illegal gambling businesses in our neighborhoods.”
“As alleged, Luca DiMatteo and Lukey DiMatteo picked up a check every couple of weeks from a local business for more than ten years, but it wasn’t a paycheck—rather they picked up a shakedown check. In addition to facing charges of racketeering conspiracy, extortion, and loansharking, Lukey DiMatteo and John Shields are charged with allegedly operating an illegal gambling business. The FBI will continue to work to protect victims and root out any and all organized crime activity—wherever we may find it,” stated FBI Assistant Director-in-Charge Rodriguez.
Two of the defendants, Luca DiMatteo and John Shields, were arraigned yesterday before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn. The third defendant, Lukey DiMatteo, is scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Elizabeth A. Geddes and Allon Lifshitz are in charge of the prosecution.
The Defendants:
LUCA DIMATTEO
Age: 70
Merrick, New YorkLUCA DIMATTEO (“Lukey Dimatteo”)
Age: 46
Brooklyn, New YorkJohn Shields (“Scott Greco”)
Age: 46
East Atlantic Beach, New YorkE.D.N.Y. Docket No. 15 CR 334 (ILG)
Chief Judge Young sentences Arizona woman to 2 and ½ years in federal prison for white collar crimeRead the Press Release
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that Drula Faye Fields, 62, Buckeye, Arizona, was convicted of stealing over $1 million from multiple health insurance providers. She was sentenced to 30 months in federal prison by U.S. District Chief Judge Richard L. Young.
“Health care fraud gets into the pockets of all of us through waste, theft and abuse,” said Minkler. “Ms. Fields and others like her should know, the U.S. Attorney’s Office will hold you accountable for this type of behavior.”
Fields was a medical biller for multiple doctors in the Chicago and Central Illinois area. She worked as the record keeping agent for Doctor’s Billing Service. One of the doctors she billed for had a practice in Peoria, Illinois, who primarily performed medical physicals for pilots. The doctor was certified by the FAA to perform the physicals for pilots who needed the examination to retain their license.
Beginning in December of 2010 and continuing until 2012, Fields sent approximately 68 false claims for pilot physical examinations which were never rendered. Two pilot visited the doctor three times each but Fields billed the health care providers for nearly ten times those visits. All total, health insurance companies were billed for over $1 million in fraudulent claims and diverted to an account controlled by Fields. She then squandered this money at casinos and on home and internet shopping.
This case was investigated by the Federal Bureau of Investigation, Anthem Insurance, and the Indiana State Police.
According to Assistant United States Attorney Bradly Shepard who prosecuted the case for the government, Fields was ordered to pay over $1,000,000 in restitution to victims and serve three years of supervised release after her sentence.
Canadian Citizen Pleads Guilty to Leading an International Fraud SchemeRead the Press Release
Earlier today, Sandy Winick pleaded guilty at the federal courthouse in Brooklyn, New York, to conspiring to commit wire fraud for running an international advance fee scheme. According to court filings and facts presented during the plea proceeding, Winick was the leader of the multi-million dollar scheme, which used call centers around the world to defraud victims. Winick, a Canadian citizen, was extradited from Thailand to face charges here.
The guilty plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
In announcing the guilty plea, Mr. Currie extended his grateful appreciation to the FBI, which led the government’s investigation, and thanked the Internal Revenue Service, Criminal Investigation, New York; Homeland Security Investigations, Department of Homeland Security, Buffalo; Treasury Inspector General for Tax Administration; and the Royal Canadian Mounted Police and law enforcement authorities in England, Thailand, and China for their assistance.
Winick is the seventh defendant to plead guilty in this case to date. Nine defendants were charged in two related schemes that Winick led from 2008 through 2013. In the first scheme, several defendants, including Winick, were charged with engaging in an international “pump and dump” operation, fraudulently inflating the share price of worthless penny stocks, and then dumping billions of shares on unsuspecting victim investors across the globe. In the second scheme, the defendants, including Winick, were charged with operating boiler rooms in four countries, inducing investors in penny stocks, including many of the victims in the first scheme, to pay advance fees that the defendants promised would enable them to sell the stocks and recover any losses they incurred. In reality, Winick and his co-conspirators simply stole the fees without providing any services, fraudulently extracting more than five million dollars from their victims. As part of this scheme, Winick established and operated boiler rooms or call centers in various locations around the world, including Canada, Thailand, and China, to solicit fees from the victims. Winick also planned to open a call center in Brooklyn.
When sentenced by United States District Judge Eric N. Vitaliano, Winick faces a maximum sentence of 20 years.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by the Office’s Business and Security Fraud Section. Assistant United States Attorneys Christopher A. Ott and Sylvia Shweder are in charge of the prosecution, with assistance provided by Assistant United States Attorney Melanie Hendry of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
SANDY WINICK
Citizenship: Canada
Age: 57
Ontario, CanadaE.D.N.Y. Docket No. 13-CR-452 (S-2)(ENV)
Broward County Bank Robber SentencedRead the Press Release
Craig Joseph Naughtin, 43, of Broward County was sentenced to 52 months imprisonment by United States District Judge Beth Bloom for robbing the Wells Fargo Bank in Pompano Beach. Following his release from prison, the defendant will be placed on supervised release for three years and is ordered to pay restitution.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
According to court records, on February 3, 2015, Naughtin walked into the Wells Fargo Bank in Pompano Beach and handed the bank teller a demand note. The teller read the note and then gave Naughtin a stack of money. After receiving the money, Naughtin fled the bank. The robbery was recorded on the bank’s video surveillance system. In a search incident to Naughtin’s arrest, law enforcement officers found $3,561.00, on the defendant as well as the demand note which stated “no this is not a joke all the money in the cash draw, no GPS, no dye packs, I’ll be on my way no problems.”
Mr. Ferrer commended the investigative efforts of the FBI, BSO and the South Florida Violent Crimes Task Force for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Randy Katz.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bath Man Pleads Guilty to Firearms ChargeRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Johnny Ray Johnson, 57, of Bath, Maine pleaded guilty on Tuesday in U.S. District Court to possession of firearms by a felon.
According to court documents, on October 13, 2013, while Johnson was on probation for a 2013 domestic violence assault felony conviction in Maine state court, his probation officers conducted a home visit and found him in possession of three firearms.The defendant faces up to 10 years in prison, a $250,000 fine and three years of supervised release. His prior felony convictions may also subject him to an enhanced sentence as an Armed Career Criminal requiring a sentence of at least of 15 years in prison and five years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine Department of Corrections (Probation and Parole); the Bath Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Baltimore Man Indicted for Sex Trafficking of a Minor and Other Charges Related to His Alleged Prostitution BusinessRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Steven B. Boyd, a/k/a “Gotti,” age 36, of Baltimore, yesterday on charges of sex trafficking of a minor, sexual exploitation of a minor, and other charges related to his operation of an alleged prostitution business.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the seven count indictment, beginning in at least July 2013, Boyd was a pimp who caused girls and women to engage in commercial sex acts for his own financial benefit. The indictment alleges that Boyd recruited girls and women whom he met at hotels, other public places and online to work for him as prostitutes, including two girls who Boyd knew were under 18 years of age. Five other women over the age of 18 worked for Boyd, including two women whom Boyd persuaded to travel from Ohio and California, to Maryland to work for Boyd.
The indictment alleges that Boyd would routinely take some or all of the money from the girls and women and keep it for himself. Boyd provided the women with drugs, including “molly” and marijuana, as well as alcohol. Boyd had the girls and women walk the “track,” also called the “blade” or the “strip,” areas of Baltimore and other city streets frequented by commercial sex workers and customers. Boyd paid for online ads for the women and girls to engage in commercial sex acts. Boyd transported the girls and women on “outcalls,” taking to them to hotel rooms and residences to engage in prostitution. Boyd provided the girls and women with telephones to communicate with him about their commercial sex activities.
The indictment also alleges that Boyd used one of the minor girls to engage in sexually explicit conduct so that he could record a video. In addition, the indictment alleges that on January 12, 2015, Boyd transported three of the women from Maryland to Georgia to engage in prostitution, returning to Maryland on January 14, 2015 to continue working for Boyd.
Boyd faces a mandatory minimum sentence of 10 years and up to life in prison for each of two counts of sex trafficking of a minor; a mandatory minimum of 15 years and up to 30 years in prison for sexual exploitation of a minor; a maximum of 20 years in prison for each of two counts of enticement to travel interstate to engage in prostitution; and a maximum of 10 years in prison for each of two counts of interstate transportation to engage in prostitution. An initial appearance is scheduled for Boyd today at 1:30 p.m. before U.S. Magistrate Judge J. Mark Coulson in U.S. District Court in Baltimore. Boyd is currently detained on state charges.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Rachel M. Yasser, who are prosecuting the case.
Bakersfield Man Charged with Manufacturing Hashish Oil in His HomeRead the Press Release
BAKERSFIELD, Calif. — Following the arrest earlier today of August Davison, 26, of Bakersfield, an indictment has been unsealed charging him with maintaining a drug-involved premises, conspiracy, and manufacturing and distributing marijuana in the form of hashish oil, United States Attorney Benjamin B. Wagner announced.
According to court documents, from approximately January 2014 to April 2015, Davison manufactured hashish oil, a concentrated form of marijuana, in a tetrahydrocannabinol (THC) extraction laboratory at his residence using a potentially combustible method. Separately, at a local Bakersfield business, Davison grew marijuana plants from which he manufactured some of the hashish oil that he made. Davison distributed the hashish oil in Kern County.
This case is the product of an investigation by the Drug Enforcement Administration, the Bakersfield Police Department, the Kern County Sheriff’s Office and personnel from the DEA’s Western Regional Lab. Assistant United States Attorney Angela Scott is prosecuting the case.
If convicted, Davison faces a maximum statutory penalty of 20 years in prison and a $500,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
THC extraction laboratories are a public safety hazard and have resulted in numerous explosions and injuries. According to the California Drug Endangered Children Training and Advocacy Center (DEC-TAC), from December 2010 until April 6, 2015, 441 THC extraction laboratories were located in California; 291 in 2014 and 53 during the first three months of 2015. DEC-TAC reports children were present at 72 THC extractions laboratories found during this 4.5-year period, resulting in the injury of 12 and the death of three children. Further, during this same time frame, DEC-TAC reports 140 adults were injured and 41 adults died as a result of THC extraction laboratory explosions.
16 July 2015
Wellington man indicted for possessing images of child sexual abuseRead the Press Release
A grand jury returned a two-count indictment charging Ryan P. Reynolds, 29, of Wellington, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and possessing child sexual abuse images, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Akron FBI.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Two men indicted for bank fraud involving short sales of Youngstown gas stationsRead the Press Release
A man from Warren, Ohio, and an Indiana man were named in 10-count federal indictment for their roles in a conspiracy to defraud banks out of millions of dollars through fraudulent short sales of gas stations in the Youngstown area and other means, law enforcement officials said.
Shaukat Sindhu, 56, of Warren, and Tahir Iqbal, 48, of Crown Point, Indiana, were each indicted on two counts of conspiracy to commit bank fraud, two counts of bank fraud, one count of making false statements to a financial institution. Sindhu is also charged with one count of corrupt interference with the administration of the IRS and four tax counts.
Sindhu owned several gas stations and other commercial property, but at times failed to make mortgage payments on these properties. Sindhu, Iqbal and others defrauded First Midwest and Consumers National banks by making false and misleading omission and representations about ownership of the properties between 2008 and 2013. Iqbal acted as a straw buyer for Sindhu in a short sale, enriching Sindhu by reducing or eliminating the principle owned on the properties, according to the indictment.
Iqbal also served as a straw buyer for Sindhu for a 16,800-square foot, nine-bedroom home in Oak Park, Illinois, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Chelsea Rice following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Reading Men Indicted on Gun ChargeRead the Press Release
PHILADELPHIA - Miguel Angel Castillo, 38, and Noel Alberto Manon, 29, both of Reading, PA, were charged by indictment, unsealed today, with dealing in firearms without a license, unlawful possession of firearms, and related offenses. Manon is additionally charged with distribution of methamphetamine, announced United States Attorney Zane David Memeger and Berks County District Attorney John T. Adams.
If convicted the defendants each face a maximum statutory sentence of 110 years in prison, a fine of up to $6.52 million, three years supervised release, and a special assessment.
The case was investigated by the Federal Bureau of Investigation Allentown Office, the Reading Police Department, and the Berks County District Attorney’s Office, with assistance from the Pennsylvania State Police and the U.S. Marshals Service. It is being prosecuted by Assistant United States Attorney Joseph A. LaBar and Special Assistant United States Attorney Jesse Leisawitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two New York Salesmen Sentenced to Prison in Business Opportunity Fraud SchemeRead the Press Release
Scheme Defrauded More than 330 Victims Across the Country
A federal judge in the Eastern District of New York sentenced two sales representatives to prison today for their roles in a vending machine business opportunity fraud scheme, the Department of Justice announced today.
Howard S. Strauss, 66, of Jericho, New York, was sentenced to serve 28 months in prison by U.S. District Court Judge Joan M. Azrack, who also ordered him to pay $2,291,844 in restitution to 230 victims. Mark Benowitz, 68, of Midlothian, Virginia, was sentenced to serve 24 months in prison and ordered to pay $997,210 in restitution to 103 victims.
Both Strauss and Benowitz pleaded guilty last year to fraud charges in connection with Multivend LLC, doing business as Vendstar, a company based in Deer Park, New York, that sold vending machine business opportunities to consumers throughout the United States until 2010. Strauss and Benowitz were Vendstar sales representatives who misrepresented the business opportunity’s likely profits, the amount of money that Vendstar’s prior customers were earning, how quickly customers were likely to recover their investment, the quality of locations that were available for the vending machines, and the level of location assistance that customers would receive from locating companies recommended by Vendstar. Both Strauss and Benowitz also falsely told potential customers that they operated profitable candy vending machine routes themselves.
“These defendants promised the American dream, but knew that what they in fact were offering was a worthless business opportunity,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to prosecute those who seek to scam out of everyday Americans the hard-earned money in their retirement accounts and life savings.”
Twenty-two individuals have been charged with fraud in connection with Vendstar, including Vendstar managers and sales representatives, and the operators of locating companies recommended by Vendstar. Three of those defendants have now been sentenced; 13 defendants are awaiting sentencing; and six defendants are scheduled to stand trial in September.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service for its thorough investigation. The case is being prosecuted by Trial Attorneys Patrick Jasperse and Alan Phelps of the Civil Division’s Consumer Protection Branch.
Twenty Arrested as Federal and Local Authorities Dismantle Violent Set of Crips GangRead the Press Release
A 75-count superseding indictment was unsealed today in United States District Court for the Eastern District of New York charging alleged members and associates of the Outlaw Gangsta Crips (OGC) with crimes including racketeering conspiracy, murder conspiracy, attempted murder, bank fraud, narcotics trafficking, and firearms offenses. The indictment was returned under seal by a federal grand jury on July 15, 2015, and charges the defendants with crimes committed in New York, Connecticut, and West Virginia between August 9, 2013 and May 12, 2015.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), William J. Bratton, Commissioner, New York City Police Department (NYPD), and Kenneth P. Thompson, District Attorney, Kings County District Attorney’s Office (KCDA).
“This prosecution effectively ends OGC’s reign of terror over East Flatbush,” stated Acting United States Attorney Currie. “We are committed to dismantling these criminal gangs and making our communities safe.” Mr. Currie thanked the FBI, NYPD, U.S. Marshal Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Inspection Service, Martinsburg, West Virginia Police Department, and the Norwich, Connecticut Police Department for their assistances in the investigation.
FBI Assistant Director-in-Charge Rodriguez stated, “The FBI remains committed to working with our law enforcement partners to eliminate violent criminal gangs like OGC while protecting our communities. The profits OGC allegedly obtained by peddling poison and committing bank fraud allowed them to purchase weapons in support of their illegal operations. Their crimes, alleged herein, run the gamut from racketeering conspiracy and drug distribution to robbery, assault, murder conspiracies, and attempts. We would like to thank all the agencies noted above for their participation in this investigation.”
Police Commissioner Bratton stated, “The members of OGC and their associates allegedly operated their violent gang on the streets of Brooklyn and beyond the borders of New York City, but with these arrests and indictments we send a message–the NYPD and our law enforcement partners will work tirelessly to bring you to justice and remove you from our communities. I want to commend the hard work of the investigators of Gang Squad Brooklyn South and the many law enforcement agencies who contributed to this investigation.”
District Attorney Thompson stated, “With this indictment, we are returning the streets of East Flatbush to the people of East Flatbush – who should not have to live in the midst of gun violence, murder plots, and drug dealing.”
OGC was based in and around the East Flatbush neighborhood of Brooklyn, and comprised a set, or subgroup, of the Crips street gang that included an offshoot known as Shoota Gang, which in turn included members and associates of OGC as well as members and associates of other gangs, including the Eight Trey Gangsta Crips (Eight Trey), Bosses In Business, and the Bloods. As alleged in the superseding indictment and the government’s detention memorandum, 16 of the defendants – including the leaders of OGC, Conell Brogdon, Courtney Coy, and Parris Desuze – participated in the affairs of OGC through a variety of crimes. The charged crimes of violence included robberies, gang shootouts, and displays of power over gang turf:
- On October 9 and 10, 2013, Solomon Artis and others conspired to break into and rob at gunpoint a check-cashing store at 1446 Nostrand Avenue. They entered a vacant apartment above the check-cashing business and began cutting a hole in the floor. Their plan was to enter the store during the day and to force an employee – at gunpoint – to open the safe. The plan was thwarted when an employee noticed damage to the ceiling.
- On October 12, 2013, Brogdon shot victims identified in the indictment as John Doe #2 and John Doe #3 in front of 1404 Nostrand Avenue. The shootings were part of an ongoing dispute with rivals of OGC.
- On June 3, 2014, Brogdon, Malik Campbell, Brandon Greenidge, Jeffrey Joseph, and Stephon Rene attempted to murder a victim identified as John Doe #1. The defendants surrounded John Doe #1 inside of the Big Boy Deli at 1452 Nostrand Avenue in Brooklyn and attempted to steal his chain. During the confrontation, Brogdon handed Campbell a gun, and Campbell shot John Doe #1 multiple times.
- On July 19, 2014, Cordero Passley and others assaulted and stabbed – in the torso, throat, and neck – a victim identified as John Doe #4 in front of 116 Lenox Road. The incident began when Passley ordered a woman to stop playing a song by alleged rival gang member Ackquille Jean Pollard, better known as the rapper “Bobby Shmurda.” When John Doe #4 defended the woman, which Passley viewed as disrespectful, Passley and others attacked him, sending him to the hospital.
Significantly, the government’s investigation, which included a judicially-authorized wiretap, thwarted a conspiracy to murder two individuals. In January 2014, a member of OGC named Kareem Mitchell, also known as “Pop,” was murdered. OGC members believed that John Doe #5 and John Doe #6, and a third individual, were responsible for the murder. On May 12, 2015, Artis, Leonard Barletto, Coy and Desuze discussed in a series of intercepted telephone calls their belief that John Does #5 and #6 were in a specific location in East Flatbush, and Barletto, Coy, and Desuze confirmed that they had guns. Later that day, law enforcement observed Barletto, Coy, and Andre Holman in a car parked on the block where they expected to find the intended victims. After the three defendants stepped out of the car and walked around the corner, Barletto and Coy were arrested along with Desuze, who was with them; Artis was arrested one block away in his home. A search of the car revealed three firearms. Holman was arrested on May 24, 2015.
The members and associates of OGC also profited by narcotics trafficking and bank fraud. The bank fraud charges allege that Derrick Bienaime, Davon Brown, Passley, Gabriel Patterson, and Akeem Watson conspired to defraud financial institutions between January 6, 2014 and January 20, 2015, and that they participated in schemes to defraud Bank of America, Citibank, JPMorgan Chase, and TD Bank. The schemes involved numerous transactions in New York and elsewhere and, conservatively, caused losses in excess of $500,000. In each instance a scheme began with a member or associate of OGC – including Eight Trey members Brown and Passley, who were closely affiliated with OGC – obtaining a paycheck and then using the information on that check to create phony checks that appeared to be written by business entities. The phony checks were deposited into various individuals’ bank accounts, and money was then quickly withdrawn before the checks could be determined to be fraudulent.
If convicted of the charges in the superseding indictment, Artis, Barletto, Derrick Bienaime, Brogdon, Campbell, Stanley Cherenfant, Steven Cherenfant, Coy, Desuze, Greenidge, Cory Harris, Jamar Harry, Holman, Silbert Nicholson, Joseph, and Rene each face a maximum sentence of life.
Thirteen of the defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn. Greenidge was arraigned earlier today at the federal courthouse in Martinsburg, West Virginia, and Passley will be arraigned this afternoon at the federal courthouse in Atlanta, Georgia. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the office’s Organized Crime & Gangs Section. Assistant United States Attorneys Allon Lifshitz and Rena Paul are in charge of the prosecution.
The Defendants:
SOLOMON ARTIS
Age: 25
Residence: Brooklyn, New YorkLEONARD BARLETTO
Age: 27
Residence: Brooklyn, New YorkDERRICK BIENAIME
Age: 20
Residence: Brooklyn, New YorkCONELL BROGDON
Age: 28
Residence: Brooklyn, New YorkDAVON BROWN
Age: 21
Residence: Brooklyn, New YorkMALIK CAMPBELL
Age: 27
Residence: Brooklyn, New YorkSTANLEY CHERENFANT
Age: 24
Residence: Brooklyn, New YorkSTEVEN CHERENFANT
Age: 23
Residence: Brooklyn, New YorkCOURTNEY COY
Age: 28
Residence: Brooklyn, New YorkPARRIS DESUZE
Age: 26
Residence: Brooklyn, New YorkBRANDON GREENIDGE
Age: 29
Residence: Brooklyn, New YorkCORY HARRIS
Age: 26
Residence: Brooklyn, New YorkJAMAR HARRY
Age: 26
Residence: Brooklyn, New YorkANDRE HOLMAN
Age: 27
Residence: Brooklyn, New YorkJEFFREY JOSEPH
Age: 30
Residence: Brooklyn, New YorkSILBERT NICHOLSON
Age: 23
Residence: Brooklyn, New YorkCORDERO PASSLEY
Age: 20
Residence: Brooklyn, New YorkGABRIEL PATTERSON
Age: 20
Residence: Brooklyn, New YorkSTEPHON RENE
Age: 18
Residence: Brooklyn, New YorkAKEEM WATSON
Age: 23
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 15 CR 287 (S-1) (WFK)
Three Southern Illinois Residents Charged with Crack Cocaine OffenseRead the Press Release
Three southern Illinois residents were indicted on July 7, 2015, in a one-count indictment, charging conspiracy to distribute 28 or more grams of crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Tommy T. Langston, a/k/a "G," 35, of Herrin, Tammy R. Whitton, 45, of Mt. Vernon, and Jeffery L. Cain, a/k/a "Fatz," 35, of Carbondale, are charged with conspiracy to distribute 28 or more grams of crack cocaine. The indictment alleges that the offense occurred between October 2014 and March 2015, in Williamson and Jackson Counties. Langston and Cain made their initial appearances in federal court in Benton on July 9, 2015. Whitton made her initial appearance in federal court on July 13, 2015, and appeared at a detention hearing on July 16, 2015. All three co-defendants are currently being held without bond pending their September 14, 2015, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, the crack cocaine offense carries a penalty of 5-40 years in federal prison, to be followed by 3 years’ supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Drug Enforcement Administration, Jackson County Sheriff’s Office, and Carbondale Police Department. The Williamson and Jackson County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Three Charged in Investment Schemes that Victimized over 20 and Caused Losses Totaling more than $2 MillionRead the Press Release
RIVERSIDE, California – Three people, including a Coachella Valley man who allegedly posed as a war hero and a successful attorney, have been charged by a federal grand jury for their roles in a variety of fraudulent schemes that victimized at least 20 investors and caused losses of more than $2 million.
The case was announced today by United States Attorney Eileen M. Decker; David Bowdich, the Assistant Director in Charge of the FBI’s Los Angeles Field Office; and Norm Embry, Special Agent in Charge of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
The three defendants were charged in a superseding indictment filed on July 8, and one of the defendants was arrested this week. The 24-count indictment alleges that they lied to investors in a series of schemes, and then used investor money for personal expenses rather than investing the funds as promised. The defendants named in the indictment are:
• Jerome Whittington, 65, of La Quinta, California, who was initially charged in June 2014 in this case, and who is charged in a separate case with posing as a former federal prosecutor in a case involving a former DEA agent (see: http://www.justice.gov/usao-cdca/pr/former-dea-agent-arrested-lax-fraud-and-passport-charges);
• Patricia Torres Zavala, 42, of Benicia, California, who was arrested on Tuesday in Northern California, subsequently released on bond, and ordered to appear for an arraignment in federal court in Southern California on August 4; and
• Kathleen Moore, 68, of Olympia, Washington, who has agreed to surrender to federal authorities on August 5.
The superseding indictment alleges that Whittington and his two codefendants made false statements and misrepresentations to induce victims to invest money in various business ventures and real estate purchases. Among other misrepresentations detailed in the indictment, Whittington falsely claimed to be a wealthy real estate investor, a Purple Heart recipient and an attorney to gain the admiration of victims and add legitimacy to the scheme. In one instance, Whittington told a victim he owned a private jet and movie company as he solicited an investment in a company known as “Sesma.” Whittington claimed Sesma had developed an Internet browser that was being used in China, and while Whittington told the victim his investment would be used to purchase stock in Sesma, he instead used the money for personal expenses.
In another scheme, Zavala, a former Bank of America employee, purported to be a short-sales expert working with Whittington in order to help victims obtain real estate properties at very low rates, according to the indictment. Zavala, who allegedly used her position at the bank to coerce victims to send money, was paid by Whittington from the proceeds of the fraud.
Moore purported to be Whittington’s accountant and, in that capacity, handled all finances and received money from various victims. The indictment alleges that Moore promised investors returns of up to $25 for every $2 invested in Sesma.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If convicted of the charges in the indictment, Whittington faces a statutory maximum penalty of 480 years in federal prison. If convicted, Moore faces a maximum of 240 years, and Torres faces up to 200 years. The government will also seek forfeiture of real estate and money derived from the scheme if the defendants are convicted. This investigation was conducted by the Federal Bureau of Investigation and SIGTARP, with the assistance of the Bossier Parish Sheriff’s Office in Bossier City, Louisiana, and the Ventura County Sheriff’s Department. During Tuesday’s arrest of Zavala, SIGTARP agents were assisted by the Federal Housing and Finance Agency and the Benicia Police Department.
Three Alleged Indiana Gang Members Charged with Murder in Aid of RacketeeringRead the Press Release
In two separate cases, two members of the Two Six nation and one member of the Latin Kings were indicted for murder in aid of racketeering and other offenses, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.
“Prosecutions, like the one announced here, demonstrate the effectiveness of the task force approach to fighting gang violence,” said Assistant Attorney General Caldwell. “Along with our partners, the Criminal Division will aggressively work to release the grip that gangs hold on many neighborhoods across this country.”
“If you are a member of a violent street gang and you committed a murder or other violent act last week or last decade, we are coming at you,” said U.S. Attorney Capp. He also reiterated his office’s continuing commitment to removing all members of these violent street gangs from the streets on northwest Indiana.
Marcus Lovell Jenkins, 26, of East Chicago, Indiana, and Charles Garcia-Berrios, 22, of Hammond, Indiana, were charged by superseding indictment with murder in aid of racketeering and use of a firearm in connection with a crime of violence for their alleged roles in the killing of Kemond Coleman. Jenkins also is charged with possession of a firearm by a prohibited person.
According to the allegations in the indictment, Jenkins and Garcia-Berrios are members of the Two Six Nation street gang. The indictment alleges that, on July 26, 2014, Jenkins and Garcia-Berrios shot and killed Coleman for the purpose of maintaining and enhancing their positions within the gang. Garcia-Berrios and Two Six member Julio Ivan Cartagena previously were charged with the attempted murders of two individuals in this case. All three defendants are in federal custody.
In a separate case, Anton James, 19, of Hammond, was charged by indictment with murder in aid of racketeering and murder resulting from the use of a firearm during a crime of violence for his alleged role in the murder of Martin Hurtado Sr. According to the allegations in the indictment, James is a member of the Latin Kings street gang. The indictment alleges that, on Oct. 28, 2014, James shot and killed Hurtado Sr. believing that he was Martin Hurtado Jr., whom James believed was a rival gang member. James made his initial appearance in federal court this afternoon before Magistrate Judge Andrew Rodovich of the Northern District of Indiana.
An charges and allegations in the indictments are merely allegations. The defendants are presumed innocent until and unless proven guilty.
These cases are the result of the investigative efforts of the FBI, the ATF, the East Chicago Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. The Jenkins case is being prosecuted by Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney David Nozick of the Northern District of Indiana. The James case is being prosecuted by Assistant U.S. Attorney Nozick.
Jenkins Superseding Indictment
James Indictment
Three Alleged Indiana Gang Members Charged with Murder in Aid of RacketeeringRead the Press Release
WASHINGTON – In two separate cases, two members of the Two Six nation and one member of the Latin Kings were indicted for murder in aid of racketeering and other offenses, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.
“Prosecutions, like the one announced here, demonstrate the effectiveness of the task force approach to fighting gang violence,” said Assistant Attorney General Caldwell. “Along with our partners, the Criminal Division will aggressively work to release the grip that gangs hold on many neighborhoods across this country.”
“If you are a member of a violent street gang and you committed a murder or other violent act last week or last decade, we are coming at you,” said U.S. Attorney Capp. He also reiterated his office’s continuing commitment to removing all members of these violent street gangs from the streets on northwest Indiana.
Marcus Lovell Jenkins, 26, of East Chicago, Indiana, and Charles Garcia-Berrios, 22, of Hammond, Indiana, were charged by superseding indictment with murder in aid of racketeering and use of a firearm in connection with a crime of violence for their alleged roles in the killing of Kemond Coleman. Jenkins also is charged with possession of a firearm by a prohibited person.
According to the allegations in the indictment, Jenkins and Garcia-Berrios are members of the Two Six Nation street gang. The indictment alleges that, on July 26, 2014, Jenkins and Garcia-Berrios shot and killed Coleman for the purpose of maintaining and enhancing their positions within the gang. Garcia-Berrios and Two Six member Julio Ivan Cartagena previously were charged with the attempted murders of two individuals in this case. All three defendants are in federal custody.
In a separate case, Anton James, 19, of Hammond, was charged by indictment with murder in aid of racketeering and murder resulting from the use of a firearm during a crime of violence for his alleged role in the murder of Martin Hurtado Sr. According to the allegations in the indictment, James is a member of the Latin Kings street gang. The indictment alleges that, on Oct. 28, 2014, James shot and killed Hurtado Sr. believing that he was Martin Hurtado Jr., whom James believed was a rival gang member. James made his initial appearance in federal court this afternoon before Magistrate Judge Andrew Rodovich of the Northern District of Indiana.
An charges and allegations in the indictments are merely allegations. The defendants are presumed innocent until and unless proven guilty.
These cases are the result of the investigative efforts of the FBI, the ATF, the East Chicago Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. The Jenkins case is being prosecuted by Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney David Nozick of the Northern District of Indiana. The James case is being prosecuted by Assistant U.S. Attorney Nozick.
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Three Additional Defendants Sentenced in Large A-PVP ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On July 14, 2015, Desera Jade Allen, 27, and David Michael Stallard, 20, both of Kingsport, Tenn., were sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 151 months and 56 months in prison respectively for their roles in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy in the Sullivan County, Tenn., area. Additionally, William Aope Ward, 35, of Kingsport, Tenn., was sentenced on July 9, 2015, to serve 80 months in prison for his involvement in the a-PVP conspiracy.
A-PVP is a synthetic drug, primarily ordered from China, which is commonly referred to on the street as “gravel” or “flakka.” Common effects on users include: extreme paranoia; hallucinations; elevated blood pressure; extremely high body temperature; excited delirium; staying awake for days; hostility and having exceptional strength without apparent fatigue. These are many of the characteristics of the drug that make it very dangerous for the user but also for law enforcement responding to people who are high on it.
According to plea agreements on file with the US District Court Clerk, Allen, Stallard and Ward conspired to distribute a combined aggregate total of approximately 11,400 grams of a-PVP.
Others who were previously sentenced in this a-PVP trafficking investigation include Austin Michael Stallard, Johnny Michael Stallard, Phillip Wayne Mullins, Johnny White, Evelyn Vickers and Michael Ray Mangum, who were sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge to 121 months, 180 months, 151 months, 120 months, 110 months and 120 months in federal prison respectively.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Allen, Stallard and Ward and their co-defendants include the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; Sullivan County Sheriff’s Office; Kingsport Police Department; Hawkins County Sheriff’s Department; Johnson City Police Department; Greeneville Police Department; Hendersonville, North Carolina Police Department; and Scott County, Virginia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Tallahassee Woman Sentenced for Sex Trafficking of a MinorRead the Press Release
TALLAHASSEE, FLORIDA – Christine Thurman, 29, of Tallahassee, was sentenced to 126 months in prison yesterday, to be followed by 20 years of supervised release, for sex trafficking of a minor and conspiracy to transport a minor for prostitution. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During her guilty plea on January 15, 2015, Thurman admitted that, between November 2013 and May 2014, she knowingly conspired with others to transport an individual less than 18 years of age for prostitution. This sex trafficking organization posted online advertisements offering underage girls as escorts. Upon discovering the advertisements in January 2014, an undercover investigator attempted to arrange a meeting at a local motel with a girl featured in one of the online ads. While surveilling the motel, investigators observed Thurman leave a motel room adjacent to the room where the undercover investigator had arranged to meet the minor. Investigators then obtained documentation indicating that Thurman had been involved in the payment for both motel rooms. When investigators obtained access to the rooms, they found evidence of prostitution, Thurman’s and the victim’s personal belongings, and an online advertisement offering escort services under Thurman’s alias. Investigators were also able to establish that Thurman was connected to prepaid debit cards that had been used to pay for online advertisements offering minors as escorts. In May 2014, investigators discovered another online advertisement featuring another underage victim, whom Thurman had transported from Georgia to Tallahassee, and Thurman was arrested.
The case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, the Tallahassee Police Department, and the Leon County Sheriff’s Office, whose joint investigation led to the charges in this case. It was prosecuted by Assistant United States Attorney Eric K. Mountin.
“The safety and well-being of our children is a top priority for this U.S. Attorney’s Office and the Department of Justice,” said U.S. Attorney Marsh. “We will continue to aggressively prosecute these cases to protect the community and children, who are our most innocent victims. Great praise is deserved by all of our law enforcement partners who contributed to the success of this investigation.”
“HSI remains committed to protecting the most vulnerable members of society, our youth,” said Susan L. McCormick, Special Agent in Charge of HSI Tampa. “This sentencing is the result of the hard work of HSI, FBI, Tallahassee Police Department, and the Leon County Sheriff’s Office, working together to make our communities safer.”
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Superseding Indictment Adds Charges and Members of the Pagans to Pill Mill Case Against Pennsylvania DoctorRead the Press Release
Distribution Resulting in Death also Added to Indictment
A superseding indictment was unsealed today charging William J. O’Brien III, a doctor of osteopathic medicine, with causing a death through the illegal distribution of a controlled substance and charges eight new defendants with O’Brien in a second conspiracy to distribute controlled substances. The superseding indictment also charges O’Brien with 95 additional counts of distribution of controlled substances - oxycodone, methadone and amphetamines and charges O’Brien and his ex-wife, a ninth defendant, Elizabeth Hibbs, 54, with money laundering, bankruptcy fraud and making false statements under oath in a bankruptcy proceeding.
Charged in the conspiracy with O’Brien are: Michael Thompson, 49, Peter Marrandino, 48, Joseph Mehl, 48, Patrick Treacy, 47, Charles Johnson, 46, Frank Corazo, Jr, 52, Jennifer Lynn Chambers, 21, all of Philadelphia, and Joseph Mitchell, Sr, 39, of West Deptford, New Jersey, some of whom are members of the Pagans Motorcycle Club. Thompson and Corazo are also charged with health care fraud for allegedly using Medicaid health insurance to pay for the medically unnecessary controlled substances prescribed by O’Brien. Federal agents arrested six defendants this morning. According to the indictment, between March 2012 and January 2015, O’Brien dispensed and his coconspirators unlawfully obtained for resale, approximately 378,914 pills which contained 10 mg, 15 mg or 30 mg of oxycodone and approximately 160,492 methadone pills. The estimated street value of the controlled substances sold by the conspiracy was estimated at approximately $5 million. O’Brien generated for himself an estimated $2 million in cash proceeds from the alleged drug trafficking conspiracy.
The Conspiracy
According to the indictment, defendants Thompson, Marrandino, Mehl, Mitchell and Treacy were members or associates of the Pagans and conspired with O’Brien to distribute large quantities of dangerous and addictive controlled substances for profit. Through their connection to the Pagans, the defendants had access to illegal drug distributors. O’Brien and the defendants allegedly developed a scheme whereby so-called “patients,” who were recruited by the defendants, would typically pay O’Brien a $200 “co-pay” in cash in exchange for medically unnecessary prescriptions for controlled substances. With cash-paying “patients,” O’Brien could conceal money from creditors and the U.S. Bankruptcy Court where he had filed for Chapter 11 protection for his company WJO Inc., a group of medical practices which he owned. The indictment further alleges that after filling the prescriptions they got from O’Brien, the “patients” would turn the pills over to the defendants who would sell the pills to drug dealers. Certain controlled substances, such as oxycodone (30 mg), were in high demand.
Distribution of Controlled Substances Resulting in Death
According to the indictment, in addition to medically unnecessary controlled substances, O’Brien prescribed other drugs for “patients” to create the appearance that he was operating a legitimate medical practice. Among the other drugs he prescribed was cyclobenzaprine, a muscle relaxant aka Flexeril. The indictment alleges that on or about Dec. 17, 2013, in Levittown, O’Brien intentionally distributed, for no legitimate medical purpose, oxycodone, methadone and cyclobenzaprine, to Person #21 and the death of Person #21 resulted from the combined use of these substances.
Health Care Fraud
Defendants Thompson and Frank Corazo were each Medicaid beneficiaries. According to the indictment, Thompson and Corazo each used Keystone First benefits to pay for medically unnecessary prescriptions for oxycodone pills that they obtained from O’Brien for the purpose of resale to drug dealers. It is further alleged that Thompson and Corazo falsely represented to Keystone First that the prescriptions were medically necessary.
Money Laundering and Bankruptcy Fraud
Defendants O’Brien and Hibbs were also charged with conspiring to launder the proceeds of O’Brien’s drug distribution operation, and conspiring to commit fraud on the U.S. Bankruptcy Court by hiding income, including income from O’Brien’s drug distribution operation. On or about Nov. 15, 2010, O’Brien filed for bankruptcy protection for WJO Inc. Defendant Hibbs, who was married to O’Brien when the bankruptcy petition was filed, was, at various times, the Chief Operating Officer and the Chief Executive Officer for WJO Inc. The indictment charges that on or about July 10, 2012, O’Brien and Hibbs were fired from WJO Inc., by the trustee appointed by the U.S. Bankruptcy Court. O’Brien and Hibbs legally divorced in October 2012 but continued to reside and work together and continued to act as husband and wife. The indictment charges that O’Brien and Hibbs diverted assets from WJO Inc. to their personal accounts and to accounts controlled by them. In addition, it is alleged that O’Brien and Hibbs concealed other assets from the trustee and from creditors of WJO Inc. Both were also charged with knowingly making a false statement under oath during the bankruptcy proceedings.
If convicted of all charges, O’Brien faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life. The remaining defendants face substantial prison terms and fines and are subject to criminal forfeiture proceedings.
The case was investigated by the FBI, the Food and Drug Administration Office of Criminal Investigations and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney Mary Beth Leahy.
Superseding Indictment Adds Charges and Members of the Pagans to Pill Mill Case Against DoctorRead the Press Release
Distribution resulting in death also added to indictment
PHILADELPHIA – A superseding indictment was unsealed today charging William J. O’Brien III, a doctor of osteopathic medicine, with causing a death through the illegal distribution of a controlled substance, and charges eight new defendants with O’Brien in a second conspiracy to distribute controlled substances. The superseding indictment also charges O’Brien with 95 additional counts of distribution of controlled substances - oxycodone, methadone, and amphetamines; and charges O’Brien and his ex-wife, a ninth defendant, Elizabeth Hibbs, 54, with money laundering, bankruptcy fraud, and making false statements under oath in a bankruptcy proceeding.
Charged in the conspiracy with O’Brien are: Michael Thompson, 49, Peter Marrandino, 48, Joseph Mehl, 48, Patrick Treacy, 47, Charles Johnson, 46, Frank Corazo, Jr., 52, Jennifer Lynn Chambers, 21, all of Philadelphia, and Joseph Mitchell, Sr., 39, of West Deptford, NJ, some of whom are members of the Pagans Motorcycle Club. Thompson and Corazo are also charged with health care fraud for allegedly using Medicaid health insurance to pay for the medically unnecessary controlled substances prescribed by O’Brien. Federal agents arrested six defendants this morning. According to the indictment, between March 2012 and January 2015, O’Brien dispensed, and his coconspirators unlawfully obtained for resale, approximately 378,914 pills which contained 10 mg, 15 mg or 30 mg of oxycodone; and approximately 160,492 methadone pills. The estimated street value of the controlled substances sold by the conspiracy was estimated at approximately $5 million. O’Brien generated for himself an estimated $2 million in cash proceeds from the alleged drug trafficking conspiracy.
The Conspiracy
According to the indictment, defendants Thompson, Marrandino, Mehl, Mitchell, and Treacy were members or associates of the Pagans and conspired with O’Brien to distribute large quantities of dangerous and addictive controlled substances for profit. Through their connection to the Pagans, the defendants had access to illegal drug distributors. O’Brien and the defendants allegedly developed a scheme whereby so-called “patients,” who were recruited by the defendants, would typically pay O’Brien a $200 cash “co-pay” in exchange for medically unnecessary prescriptions for controlled substances. With cash-paying “patients,” O’Brien could conceal money from creditors and the United States Bankruptcy Court where he had filed for Chapter 11 protection for his company WJO, Inc., a group of medical practices which he owned. The indictment further alleges that after filling the prescriptions they got from O’Brien, the “patients” would turn the pills over to the defendants who would sell the pills to drug dealers. Certain controlled substances, such as oxycodone (30 mg), were in high demand.
Distribution of Controlled Substances Resulting in Death
According to the indictment, in addition to medically unnecessary controlled substances, O’Brien prescribed other drugs for “patients” to create the appearance that he was operating a legitimate medical practice. Among the other drugs he prescribed was cyclobenzaprine, a muscle relaxant also known as Flexeril®. The indictment alleges that on or about December 17, 2013, in Levittown, O’Brien intentionally distributed, for no legitimate medical purpose, oxycodone, methadone, and cyclobenzaprine, to Person #21, and the death of Person #21 resulted from the combined use of these substances.
Health Care Fraud
Defendants Michael Thompson and Frank Corazo, Jr., were each Medicaid beneficiaries. According to the indictment, Thompson and Corazo each used Keystone First benefits to pay for medically unnecessary prescriptions for oxycodone pills that they obtained from William J. O’Brien III for the purpose of resale to drug dealers. It is further alleged that Thompson and Corazo falsely represented to Keystone First that the prescriptions were medically necessary.
Money Laundering and Bankruptcy Fraud
Defendants O’Brien and Hibbs were also charged with conspiring to launder the proceeds of O’Brien’s drug distribution operation, and conspiring to commit fraud on the United States Bankruptcy Court by hiding income, including income from O’Brien’s drug distribution operation. On or about November 15, 2010, O’Brien filed for bankruptcy protection for WJO, Inc. Defendant Hibbs, who was married to O’Brien when the bankruptcy petition was filed, was, at various times, the Chief Operating Officer and the Chief Executive Officer for WJO, Inc. The indictment charges that on or about July 10, 2012, O’Brien and Hibbs were fired from WJO, Inc., by the Trustee appointed by the United States Bankruptcy Court. O’Brien and Hibbs legally divorced in October of 2012 but continued to reside and work together and continued to act as husband and wife. The indictment charges that O’Brien and Hibbs diverted assets from WJO, Inc. to their personal accounts and to accounts controlled by them. In addition, it is alleged that O’Brien and Hibbs concealed other assets from the Trustee and from creditors of WJO, Inc. Both were also charged with knowingly making a false statement under oath during the bankruptcy proceedings.
If convicted of all charges, O’Brien faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life. The remaining defendants face substantial prison terms and fines, and are subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Mary Beth Leahy.
Shooter Sentenced to 20 Years in Federal PrisonRead the Press Release
DALLAS — A Grand Prairie man who fired at law enforcement during the February 2015 multi-agency takedown of the violent “Goon Squad,” whose members were involved in illegal narcotics-trafficking and other criminal offenses including burglaries, robberies and other acts of violence, was sentenced yesterday, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Guillermo Perez, 19, was sentenced by U.S. District Judge Barbara M. G. Lynn to 20 years in federal prison. He pleaded guilty in March 2015 to two counts of assault on a federal officer.
According to documents filed in the case, on the morning of February 10, 2015, at approximately 6:00 a.m., law enforcement sought to arrest Jose Pedro Maya, a/k/a “Little Maya,” 21, who had been living at a residence on Brook Lane in Grand Prairie, where Perez also resided. Perez had been assisting Maya with Maya’s drug trafficking operations. Maya had been one of the members of the Goon Squad, but later split from them and began leading his own drug trafficking organization. Maya was arrested and later pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine and cocaine; his sentencing is set in mid-September 2015.
When law enforcement arrived at the Brook Lane residence, they were dressed in distinct clothing identifying themselves as FBI agents. Prior to entry into the residence, the emergency lights of FBI vehicles and marked Grand Prairie Police department vehicles were activated, making law enforcement’s presence clear. An announcement was also made over a loud speaker to identify their presence. Perez heard the announcement.
As FBI SWAT team members began to make entry into the residence, Perez located an AK-47 and fired two shots toward the front door where law enforcement was entering. Fortunately, the shots did not hit the agents.
The FBI and the Grand Prairie Police Department investigated. Assistant U.S. Attorney P. J. Meitl prosecuted.
Sheffield Lake man indicted for providing material support to ISILRead the Press Release
A 28-count indictment was filed charging a Sheffield Lake man with providing material support to Islamic State of Iraq and the Levant (ISIL), as well as firearms and narcotics violations.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven D. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
Indicted is Amir Said Rahman Al-Ghazi, 38, also known as Robert C. McCollum. He was arrested last month after he attempted to buy an AK-47 from an undercover agent.
“The charges in this case should remind us that ISIL does not simply present a far-away threat,” U.S. Attorney Dettelbach said. “Through social media and other means, ISIL and its mantra of violence can seek to radicalize people of all backgrounds in prisons and communities right here in Ohio. We must keep up our guard.”
“This indictment demonstrates law enforcement’s number one priority -- to keep our communities and our nation safe,” said Special Agent in Charge Anthony. “It is clear that no area is immune from the influence of ISIL and its supporters. We hope this indictment will serve as a strong message to others who may consider providing support to terrorists. The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”
Al-Ghazi, who changed his name from Robert McCollum earlier this year, is alleged to have pledged his support to ISIL and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIL in the Middle East and took steps to create propaganda videos for ISIL, according to court documents.
Count one of the indictment charges Al-Ghazi with attempting to provide material support to ISIL. Counts two and three charge Al-Ghazi with being a felon in possession of a firearm. Counts four through 28 pertain to his sale of marijuana from February 2014 through last month.
This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Christos N. Georgalis following an investigation by the FBI’s Joint Terrorism Task Force.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sentencings for July 10 - July 16, 2015Read the Press Release
Javier Vargas-Romo, 50, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on July 16, 2015, for illegal re-entry of a previously deported alien into the United States. Vargas-Romo was arrested in Worland, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Pedro Gonzalez-Navarrez, 44, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on July 16, 2015, for illegal re-entry of a previously deported alien into the United States. Gonzalez-Navarrez was arrested in Cheyenne, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Caitlin Villa, 37, of Loveland, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on July 15, 2015, for conspiracy to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Villa was arrested in Adams County, Colorado. She received 69 months and six days imprisonment, to be followed by four years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
Benjamin Medina, 58, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 10, 2015, for being a felon in possession of a firearm. Medina received 180 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Schuele Boys Gang Drug Supplier Arrested at the Texas-Mexico BorderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Julio Contreras, 31, of McAllen, Texas, who was named in a 15 count superseding indictment involving the Schuele Boys Gang, has been arrested by federal law enforcement officers at the Anzalduas Port of Entry in Mission, Texas as he attempted to return to the United States from Mexico. The defendant is charged with racketeering conspiracy, narcotics conspiracy and possession of firearms in furtherance of a drug trafficking crime.U.S. Attorney Hochul made the announcement at the Delavan Grider Community Center, located in the immediate area where the gang’s activities were conducted. The U.S. Attorney spoke to students attending summer camp at the community center, as well as senior citizens. He stated that Buffalo residents are entitled to a safe and healthy environment, and urged the public to continue to report any indications of criminal activity.
Students also heard from a former Schuele Boys Gang associate who was convicted in this case. He shared his experience in the criminal justice system and urged the students to make good, positive choices in their lives.
Assistant U.S. Attorney Wei Xiang, who is handling the latest Schuele Boys case, stated that according to the superseding indictment, Contreras was the main source of supply of cocaine for the Schuele Boys Gang in Buffalo. The gang operated in the Schuele Avenue area of the East Side of Buffalo and is alleged to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
The Government alleges that Contreras supplied the Schuele Boys with upwards of $1,000,000 of cocaine on a monthly basis. In addition, the defendant purchased and built assault rifles in Texas that he then sold or traded to Mexican sources in exchange for cocaine. Contreras traveled to Buffalo on multiple occasions to meet with co-defendants Aaron Hicks and Letorrance Travis. On December 18, 2010, Hicks and the defendant were arrested by police outside a residence belonging to Travis on Courtland Avenue.
A total of 28 defendants have been charged in the case, nine defendants having been convicted to date.The superseding indictment is the culmination of an investigation by Federal Bureau of Investigation Safe Streets Task Force, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, the New York State Police, under the direction of Major Michael Cerretto, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Edinboro, Pennsylvania Police Department, under the direction of Chief Jeff Craft, and the Edinboro University Police Department, under the direction of Chief Angela Vincent. Additional assistance was provided by FBI Offices in Texas and Mississippi and U.S. Immigration and Customs Enforcement–Homeland Security Investigations Offices in Texas. The Buffalo FBI Safe Streets Task Force includes the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Erie County Sheriff’s Office; Hamburg Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.