Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 21 May 2015
California Operator of MyRedBook.com Sentenced to 13 Months in Prison for Facilitating ProstitutionRead the Press Release
Defendant Also Ordered to Forfeit More Than $1.28 Million
A California man was sentenced to 13 months in prison today for his operation of the myRedBook.com website to facilitate prostitution. This represents the first federal conviction of a website operator for facilitation of prostitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation (IRS-CI) Oakland Field Office made the announcement.
Eric Omuro, also known as Red, 53, of Mountain View, California, pleaded guilty on Dec. 11, 2014, before U.S. District Judge William H. Orrick of the Northern District of California to using a facility of interstate commerce with the intent to facilitate prostitution. As part of his plea agreement, Omuro agreed to forfeit more than $1.28 million in cash and property, as well as the sfRedBook.com and myRedBook.com domain names.
In connection with his guilty plea, Omuro admitted that from April 2010 until June 25, 2014, he owned, managed and operated a website known as myRedBook.com, which was previously known as sfredbook.com. Omuro admitted that the website hosted advertisements posted by prostitutes containing explicit photos, graphic descriptions of sexual services offered and rates for the sexual services. The advertisements were searchable by geographic location, including cities throughout California, other U.S. states and Canada.
Omuro admitted that members of his website and prostitutes typically used acronyms for sex acts, which were defined in graphic detail in the website’s “Terms and Acronyms” section. While prostitutes could post advertisements for free, myRedBook.com offered additional options for a fee. For example, prostitutes could pay a fee to have their advertisement featured more prominently on the website. Similarly, customers could access myRedBook.com for free. If a customer purchased a membership, however, the customer obtained early and enhanced access to prostitute reviews, enhanced prostitute review search options and access to additional VIP forums, among other things.
According to an affidavit submitted in connection with the sentencing hearing, the FBI identified more than 50 juveniles who were also advertised on myRedBook for the purpose of prostitution.
This case was investigated by the FBI’s San Francisco Field Office, the IRS-CI and the Oakland, California, Police Department. The case is being prosecuted by the Criminal Division’s Child Exploitation and Obscenity Section and U.S. Attorney’s Office of the Northern District of California. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.
California Operator of MYREDBOOK.COM Sentenced to 13 Months in Prison for Facilitating ProstitutionRead the Press Release
SAN FRANCISCO – A California man was sentenced to 13 months today for his operation of the myRedBook.com website to facilitate prostitution announced U.S. Attorney Melinda Haag, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, and Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation (IRS-CI) Oakland Field Office. This represents the first federal conviction of a website operator for facilitation of prostitution.
Eric Omuro, aka Red, 53, of Mountain View, Calif., pleaded guilty on Dec. 11, 2014, before U.S. District Judge William H. Orrick of the Northern District of California to using a facility of interstate commerce with the intent to facilitate prostitution. As part of his plea agreement, Omuro agreed to forfeit more than $1.28 million in cash and property, as well as the sfRedBook.com and myRedBook.com domain names.
In connection with his guilty plea, Omuro admitted that from April 2010 until June 25, 2014, he owned, managed and operated a website known as myRedBook.com, which was previously known as sfredbook.com. Omuro admitted that the website hosted advertisements posted by prostitutes containing explicit photos, graphic descriptions of sexual services offered, and rates for the sexual services. The advertisements were searchable by geographic location, including cities throughout California, other U.S. states and Canada.
Omuro admitted that members of his website and prostitutes typically used acronyms for sex acts, which were defined in graphic detail in the website’s “Terms and Acronyms” section. While prostitutes could post advertisements for free, myRedBook.com offered additional options for a fee. For example, prostitutes could pay a fee to have their advertisement featured more prominently on the website. Similarly, customers could access myRedBook.com for free. If a customer purchased a membership, however, the customer obtained early and enhanced access to prostitute reviews, enhanced prostitute review search options and access to additional VIP forums, among other things.
According to an affidavit submitted in connection with the sentencing hearing, the FBI identified more than 50 juveniles who were also advertised on myRedBook for the purpose of prostitution.
The U.S. Attorney’s Office for the Northern District of California and the U.S. Department of Justice Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case. This case was investigated by the FBI’s San Francisco Field Office, the IRS-CI and the Oakland, California, Police Department. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.
California Man Pleads Guilty to Operating $1.6 Million Internet FraudRead the Press Release
KANSAS CITY, KAN. – A California man pleaded guilty Thursday in federal court in Kansas to operating an Internet fraud scheme that cost more than 200 victims a total of more than $1.6 million, U.S. Attorney Barry Grissom said.
Anthony Renfrow, 57, Folsom, Calif., pleaded guilty to one count of conspiracy to commit wire fraud. In his plea, he admitted he made fraudulent claims to entice people to pay to become “autosurf investors” with 14DailyPlus.com.
Investors paid a membership fee and were promised a 14 percent daily return on their money for clicking on advertisers’ Web sites for a certain period of time each day. To achieve that rate of return, 14DailyPlus.com purportedly pooled the capital investments of members and purchased advertising units on the Internet with Fortune-500 type companies.
Renfrow held regularly scheduled conference calls with investors via telephone and Internet to lull them into believing the program was legitimate and returns on investments were being paid as promised. In truth, there was no investment vehicle and the promise of a 14 percent daily return was completely unrealistic.
Renfrow founded 14DailyPlus.com in March 2006. Co-defendant William Fox, 46, formerly of Olathe, Kan., allegedly was a promoter and recruiter for 14DailyPlus.com in the Kansas City metropolitan area. He is awaiting trial.
Sentencing will be set for a later date. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Internal Revenue Service – Criminal Investigation, the U.S. Postal Inspection Service, the Johnson County District Attorney’s Office, the California Attorney General’s Office and Assistant U.S. Attorney Scott Rask for their work on the case.
Bridgeport Cocaine Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on May 19, DAMONT GEE, also known as “Monty,” 39, of Bridgeport, was sentenced by Chief U.S. District Judge Janet C. Hall in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine
This matter stems from “Operation Slim Fast,” a joint law enforcement investigation that focused on two drug trafficking organizations, one that operated out of Bridgeport and one that operated out of Bridgeport, Puerto Rico, and Springfield, Mass. In 2010, members of the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force initiated an investigation of narcotics trafficking activity in and around the Marina Village Housing Complex in Bridgeport that focused primarily on the Marina Village Bloods, a violent narcotics trafficking organization. Members of the Marina Village Bloods have been responsible for, or connected to, multiple shootings in Bridgeport.
The investigation revealed that members of the Sex, Money, Murder set of the Marina Village Bloods, sold large quantities of narcotics from an abandoned residence at 105/107 Johnson Street, which is located across from the street from the Marina Village Housing Complex.
GEE was believed to have been a member, or close associate, of the Marina Village Bloods, until his brother, Richard Gee, was killed in a gun battle across the street from 105/107 Johnson Street on July 17, 2010.
Between September and November 2010, the Task Force made five controlled purchases of a total of approximately 449 grams of cocaine from GEE. Subsequent intercepted calls and surveillance confirmed that GEE was the source of supply of cocaine for several street-level dealers and customers in the Bridgeport area.
GEE was arrested on January 4, 2011, after he and an associate traveled to a meeting location in Hartford to purchase four kilograms of cocaine. Task Force officers seized the cocaine, as well as more than $100,000 in cash from GEE and his associate.
GEE has been detained since his arrest. On June 6, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
As a result of this investigation, 19 individuals were charged with various narcotics and firearms related offenses, and law enforcement officers seized approximately four kilograms of cocaine, one kilogram of crack cocaine, a quantity of heroin, an SKS assault rifle, five handguns and more than $150,000 in cash.
This matter was investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force, including personnel from the FBI and the Bridgeport, Norwalk and Trumbull Police Departments, with assistance from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Drug Enforcement Administration, Connecticut State Police, and Hartford, Stratford and Stamford Police Departments.
The case was prosecuted by Assistant U.S. Attorneys Tracy Dayton and Doug Morabito.
Bowling Green, Kentucky, Convicted Felon Charged with Violating Federal Firearms LawsRead the Press Release
BOWLING GREEN, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the arrest and initial appearance, in U.S. District Court, of convicted felon Jackie Lee Bowles, Jr., on charges of possession of a firearm and ammunition by a convicted felon.
Bowles, age 26, of Bowling Green, was arrested on federal charges following an alleged high-speed chase and armed standoff with law enforcement yesterday, in Bowling Green, Kentucky. Bowles was charged with the possession of a loaded, General Precision Corp., Model 20, .22 caliber revolver.
According to an affidavit filed with a federal criminal complaint, Bowles pointed a handgun at a self-identified police officer, threatened to shoot additional police officers in the head, and identified himself as a Captain with the Aryan Nation. Bowles is a convicted felon, having previously pled guilty in United States District Court to charges of possession and distribution of crack cocaine (case number 1:08cr40) on January 7, 2009. Bowles is currently on Supervised Release from that conviction.
Bowles was involved in a pursuit by police at a high rate of speed, after failing to stop his vehicle for an alleged traffic violation. He fled that vehicle on foot. Bowles was later approached by law enforcement when the officer recognized him as a passenger in a vehicle at a convenience store on Louisville Road in Bowling Green. A Warren County Sheriff’s Department Sergeant identified himself and at that time, Bowles allegedly raised a handgun and pointed it at the Sergeant. Other officers arrived and established a perimeter around Bowles’ vehicle and evacuated several surrounding businesses and locked down two area schools. During this time, Bowles made several phone calls. During one of the calls, he could be heard by law enforcement officials saying “I’ll have to shoot them in the head.” Bowles is alleged to have made the comment as officers arrived with visible body armor.
Bowles is in the custody of the U.S. Marshals Service.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by ATF, in conjunction with the Warren County Sheriff’s Office and Kentucky State Police.
***
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Boston Man Sentenced to Almost Four Years for Interstate Travel to Promote ProstitutionRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Fritz Blanchard, 28, of Boston, Massachusetts, was sentenced today in U.S. District Court by Judge Nancy Torresen to 46 months in prison and three years of supervised release for aiding and abetting the transportation of women in interstate commerce for prostitution. On August 28, 2014, following a four-day jury trial, a jury found him guilty of the charge.
According to the indictment and trial evidence, on March 27, 2013, Blanchard and Samuel Gravely caused a Presque Isle woman and a Portland woman to work as prostitutes at a Portland hotel, advertising their services on backpage.com. On March 28, Blanchard and Gravely drove the two women, and another Portland woman, from Portland to Boston intending that the three work as prostitutes there. When they arrived in Boston, Blanchard took two of the women to a downtown street and told them how to attract customers and engage in prostitution. One of the two women, upon learning what was expected of her, feigned illness, separated herself, and contacted the police.
U.S. Attorney Delahanty commended the cooperation of federal, state and local law enforcement agencies in Maine and Massachusetts that lead to the rescue of these women and the successful prosecution and conviction of the defendant.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Boston Police Department; the Federal Bureau of Investigation; the Portland, Presque Isle, Old Town, Brunswick and Saco Police Departments; the Maine Drug Enforcement Agency; and Cumberland County Sheriff’s Office.
Bossier City man pleads guilty to receiving child pornography on computerRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Bossier City man pleaded guilty Wednesday to receiving child pornography.
Kenneth Ray Jurls, 40, of Bossier City, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote for one count of receiving child pornography. According to evidence presented at the guilty plea, law enforcement agents detected someone downloading child pornography using a peer-to-peer internet file sharing program. Law enforcement agents searched Jurls’ home on July 16, 2014 and seized his computer. A forensic examination of the computer revealed Jurls had been downloading child pornography for years. More than 1,000 images and videos of child pornography were found on his computer. The images included prepubescent children engaging in sexual and sadistic acts.
Because Jurls has two prior convictions for possession of child pornography in Bossier Parish, he faces 15 to 40 years in prison, not less than five years of supervised release, and a $250,000 fine. He is also required to register as a sex offender. A sentencing date of September 15, 2015 was set.
Homeland Security Investigations, Louisiana Attorney General’s Office and the Bossier City Marshal’s Office investigated the case. Assistant U.S. Attorney Michael O’Mara is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Bismarck Man Sentenced in Sexual Exploitation of a MinorRead the Press Release
BISMARCK - Acting U. S. Attorney Christopher C. Myers announced that on May 21, 2015, Garron Gonzalez, 38, Bismarck, North Dakota, was sentenced before U. S. District Judge Daniel L. Hovland to serve 25 years in prison for attempted exploitation of a minor. Judge Hovland also sentenced Gonzalez to 20 years supervised release and to pay a $100 special assessment to the Crime Victims Fund. Judge Hovland ordered the sentence to run consecutively with Gonzalez’s current state sentence of imprisonment, which is set to expire in 2015.
In December 2010, HSI-ICE began investigating Gonzalez for probation violation and seized two cellular telephones which revealed Gonzalez had been in contact with several juvenile females through various social media including text messaging. During the investigation, nude images of a 15-year-old female victim were found on Gonzalez’s phone along with sexually explicit in messages.
This case was investigated by Homeland Security Investigation ICE and the Yankton Police Department.
Assistant U. S. Attorney Gary Delorme prosecuted the case.
Birmingham Area Doctors Charged with Illegally Supplying Controlled SubstancesRead the Press Release
BIRMINGHAM – As part of the Drug Enforcement Agency's Operation Pilluted, federal authorities today arrested a Midfield doctor and charged a Birmingham doctor for illegally supplying controlled substances, announced U.S. Attorney Joyce White Vance, DEA Assistant Special Agent in Charge Clay A. Morris and Alabama Law Enforcement Agency Secretary Spencer Collier.
DEA agents this morning arrested ERNEST ALBERT CLAYBON, 72, on charges that he distributed methadone without a legitimate medical purpose. A federal grand jury indicted Claybon April 30 on five counts of distributing methadone "outside the scope of professional practice and not for a legitimate medical purpose" between November 2014 and January 2015. Claybon was arrested at his family medicine practice in Midfield.
In a separate case, The U.S. Attorney's Office charged PETER ALAN LODEWICK, 73, a physician at Lodewick Diabetes Center on Montclair Road, in a one-count information filed in U.S. District Court. The information charges that Lodewick assisted someone else in acquiring the narcotic painkiller, oxycodone, by "misrepresentation, fraud, forgery, deception, and subterfuge." Lodewick has entered a plea agreement with the government acknowledging the charges against him and stating his intention to plead guilty. Prosecutors filed the plea agreement in District Court today.
A third physician in north Alabama, MUHAMMAD WASIM ALI, 50, who owns a pain clinic in Jasper, was indicted last month on charges of illegally distributing narcotic painkillers for other than legitimate medical purposes.
Charges against the three doctors resulted from DEA's 15-month Operation Pilluted in Alabama, Arkansas, Louisiana and Mississippi, focused on reducing trafficking and abuse of pharmaceuticals.
"Alabama leads the nation in the number of per capita prescriptions for opioid painkillers, which are extremely addictive and often abused," Vance said. "The proper use of these drugs for pain management is important, but their abuse is deadly. Prescription-drug abusers often shift to heroin abuse and this tragic trend contributes to our epidemic overdose death rates. We must ensure that doctors don’t turn into illegal drug dealers," she said.
“Prescription drug abuse is the fasting-growing drug problem in the country," Morris said. "We trust our doctors to heal our bodies, not poison our communities. We will not tolerate or accept illegal prescribing, and we will bring justice to those who condone or participate in this type of practice," he said.
According to Lodewick's plea agreement, he issued about 390 prescriptions for controlled substances between January 2013 and December 2014 to a group of pill-seekers led by the doctor's housekeeper. In May 2013, Lodewick discovered that three individuals in the group were pharmacy-shopping and wrote them letters terminating their physician-patient relationship, but continued to write them opiate prescriptions, according to the plea agreement.
Lodewick voluntarily surrendered his DEA registration, ending his ability to prescribe controlled substances, in January, according to his plea agreement. He is scheduled to be arraigned on his charges Thursday.
Claybon was arraigned today.
The maximum penalty for the aiding and abetting charge against Lodewick is four years in prison and a $250,000 fine.
The maximum penalty for each distribution charge against Claybon is 20 years and a $1 million fine.
DEA, ALEA and Internal Revenue Service, Criminal Investigation, investigated the cases being prosecuted by the U.S. Attorney's Office for the Northern District of Alabama.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
###
Attorney Charged with Stealing $1.8 Million from Oxford Woman's EstateRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER M. CLARK, 57, of Woodbury, was arrested today on a federal criminal complaint charging him with stealing more than $1.8 million from the estate of an Oxford woman who died in 2010.
According to the criminal complaint, Miriam S. Strong of Oxford died on July 2, 2010. At the time of her death, Strong had a will, which left money, property and other items to a list of individuals, the Town of Oxford, the State of Connecticut, and several religious and other charitable entities. The will also called for the creation of a scholarship fund for college-bound students from Oxford. CLARK drafted the will as Strong’s attorney and served as a witness to Strong’s execution of the will. The will named CLARK and another individual as co-executors. The investigation has revealed that, during the course of the administration of the will, CLARK took at least $1.8 million from Strong’s estate for his own use.
The complaint charges CLARK with one count of mail fraud, which carries a maximum term of imprisonment of 20 years.
CLARK was arrested this morning at his residence. He appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and will be released after he posts a $500,000 bond that will be co-signed by family members.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut State Police – Western District Major Crime Squad. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Assistant Administrator of Riverside General Hospital Sentenced to 40 Years in Prison for $116 Million Medicare Fraud SchemeRead the Press Release
The former assistant administrator of Riverside General Hospital was sentenced today to 40 years in prison for his role in a $116 million Medicare fraud scheme. To date, 10 individuals have pleaded guilty or been convicted for their involvement in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Mohammad Khan, 65, of Houston, the assistant administrator who oversaw many of the partial hospitalization programs (PHPs) at Riverside General Hospital, pleaded guilty in February 2012 to conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks and paying illegal kickbacks. He was sentenced by U.S. District Court Judge Sim Lake of the Southern District of Texas. He was also ordered to pay restitution in the amount of $31,321,200.
According to admissions made in connection with his guilty plea, from January 2008 through February 2012, Khan and others at Riverside General Hospital operated a scheme to defraud Medicare by submitting claims for PHP services that were not medically necessary and, in some cases, never provided. Prior to Khan’s arrest, Riverside submitted over $116 million in claims to Medicare for PHP services purportedly provided to the recruited beneficiaries, when in fact, the PHP services were medically unnecessary or never provided. Khan also admitted that he and his co-conspirators paid kickbacks to patient recruiters and to owners and operators of group care homes in exchange for which those individuals delivered ineligible Medicare beneficiaries to the hospital’s PHPs.
Others involved in the fraudulent scheme already have pleaded guilty and are awaiting sentencing. Earnest Gibson III, the former president of Riverside; his son, Earnest Gibson IV, who operated a Riverside PHP; Regina Askew, a patient file auditor and group home operator; and Robert Crane, a patient recruiter, were all convicted after jury trial in November 2014 and await sentencing. William Bullock, an operator of a Riverside satellite location, as well as Leslie Clark, Robert Ferguson, Waddie McDuffie and Sharonda Holmes, who were involved in paying or receiving kickbacks, also have pleaded guilty to their roles in the scheme.
The case was investigated by the FBI, Internal Revenue Service Criminal Investigation and Texas Attorney General’s Medicaid Fraud Control Unit, with assistance from Health & Human Services’ Office of the Inspector General, Railroad Retirement Board’s Office of Inspector General and Office of Personnel Management’s Office of Inspector General. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who collectively have billed the Medicare program for more than $6.5 billion. In addition, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Army Sergeant Indicted for Accepting Bribes from Afghan Trucking Company in Exchange for Stealing Jet Fuel in AfghanistanRead the Press Release
HONOLULU -- Marvin L. Ware, 46, a Sergeant First Class with the 25th Infantry Division, 325th Brigade Support Battalion, Alpha Company, Schofield Army Barracks, Hawai’i has been indicted and arrested on federal charges arising from his alleged role in a scheme to steal jet fuel from Forward Operating Base Fenty, near Jalalabad, Afghanistan, in exchange for cash bribes from an Afghan trucking contractor.
According to an Indictment returned on May 20, 2015 by the federal grand jury in Hawai’i, during late 2011 and early 2012, FOB Fenty served as a regional fuel depot which supplied outlying U.S. military bases with JP8 jet fuel. Fuel deliveries were made by a local Afghan contractor, which transported the fuel in 3,000 gallon tanker trucks, termed “jingle trucks.” The Indictment alleges that between December 2011 and February 2012, Ware and two other servicemen, Sergeant Regionald Dixon and Specialist Larry Emmons, conspired to accept, and accepted, bribes in return for participating with the contractor in the theft of jet fuel from FOB Fenty. According to the Indictment, Ware and the others agreed to fill and divert jingle trucks, in return for which they received $6,000 for each truckload of stolen fuel.
The Indictment specifically alleges that Ware, Dixon and Emmons filled the jingle trucks with jet fuel, using United States military equipment, at clandestine locations and at times not likely to arouse suspicion. According to the Indictment, Ware and Emmons facilitated their scheme by creating fraudulent official military documents purporting to authorize the movement of fuel from FOB Fenty to other locations. Dixon and Emmons were charged and pled guilty to bribery charges in June 2012 for their participation in the scheme.
Ware was charged yesterday with conspiring to solicit and accept bribes, one count of bribery, one count of theft, and one count of money laundering based on the transfer, from Afghanistan to Wahiawa, Hawaii, of $25,000 which he knew were proceeds of his offenses, and which transfer was designed to conceal the nature, source and ownership of the funds.
Ware was arrested on May 21, 2015, and appeared in federal court, where he pled not guilty to all charges. Trial was scheduled for July 21, 2015 before United States District Judge Leslie E. Kobayashi. If convicted, Ware will face maximum penalties of five years’ imprisonment for the conspiracy offense, 15 years’ imprisonment for the bribery offense, 20 years’ imprisonment for the money laundering offense, and ten years’ imprisonment for the theft offense, as well as the forfeiture of the proceeds of the illegal activity. An indictment is merely an accusation, and Ware is presumed innocent until and unless proven guilty.
Ware is the seventh person charged as part of an ongoing, national investigation into the theft of fuel at FOB Fenty. In addition to Ware, Dixon and Emmons, Sergeant Christopher Weaver, Specialist Stephanie Charboneau, civilian Jonathan Hightower, and Sergeant First Class Kevin Abdullah were prosecuted in the District of Colorado and the Western District of Kentucky, respectively, for a separate scheme to steal fuel from FOB Fenty in 2010.
“It’s very troubling to discover that critical military supplies were stolen by the very people who are supposed to be protecting and serving our country,” said U.S. Attorney for the Southern District of California Laura Duffy. “That such corruption allegedly occurred in a war zone makes it even worse.”
“Today’s arrest again demonstrates our continued resolve to prosecute all corrupt public officials, at whatever level, wherever their conduct occurs,” added Florence E. Nakakuni, U.S. Attorney for Hawai’i.
“SIGAR has been at the forefront of a Southwest Asia theft of fuel initiative, which to date has prosecuted seven individuals, recovered over $1.6 million in illegal criminal proceeds and $20 million in civil penalties, and in the process, improved the safety and security of the supply of fuel to our Warfighters in Afghanistan. With the resources at our disposal, we will continue to identify and protect such strategic priorities through innovative, proactive investigatory measures, such as those that have proven so effective in these cases,” said John Sopko, the Special Inspector General of Afghanistan Reconstruction.
“It is reprehensible when a military service member abandons his ethical responsibilities and violates the sacred public trust for personal enrichment,” said Special Agent in Charge Janice M. Flores, of the Defense Criminal Investigative Service (“DCIS”) Southwest Field Office, Arlington, TX. “Today's arrest demonstrates the continued commitment of the DCIS, along with our law enforcement partners, to aggressively investigate and prosecute anyone who commits this kind of crime in order to protect the integrity of the Department of Defense and the sacrifices of the American public, especially those service members who are serving honorably and selflessly in Southwest Asia.”
The case is being investigated by SIGAR, DCIS, Army CID, and the Defense Contract Audit Agency, with substantial assistance from the FBI, and prosecuted by Assistant U.S. Attorneys Mark W. Pletcher of the Southern District of California and Ken Sorenson of the District of Hawai’i.
Anyone with information relating to fraud or corruption in government contracting should contact the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Arizona Man Sentenced for $10.2 Million Securities Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Globe, Ariz., man was sentenced in federal court today for his role in a $10.2 million securities fraud conspiracy that victimized more than 12,000 investors across the United States and Canada who bought shares in Petro America Corporation, which was purported to be a profitable company with $284 billion in assets.
Brian Langenbach, 46, of Globe, was sentenced by U.S. District Judge Brian C. Wimes to three years and 10 months in federal prison without parole. The court also ordered Langenbach to pay $696,660 in restitution.
Langenbach, the final defendant to be sentenced in this case, pleaded guilty on June 22, 2012. Five co-defendants were convicted at trial and Langenbach is among nine co-defendants who pleaded guilty.
Langenbach admitted that he participated in a conspiracy to commit securities fraud and wire fraud. Contrary to the fraudulent representations Langenbach and others made to victim-investors, Petro America had no oil, no realistic prospects for obtaining, transporting or storing large amounts of oil, no significant assets, no revenue and no employees other than the CEO.
Langenbach, a major figure in the Petro America scheme, was not licensed to sell securities. Langenbach admitted that he sold Petro America stock to at least 180 investors, receiving at least $400,000 in proceeds, from Aug. 20, 2009, to March 2, 2010. Although Langenbach became aware of red flags with the company, including the existence of cease and desist orders in Missouri and Kansas, he continued to sell shares anyway. When he sold shares, he relayed inflated expectations, and he did not disclose material negative information to investors, including the existence of the cease and desist orders.
Langenbach personally spoke on behalf of Petro during business dealings, and he personally attended at least one investor meeting and one update meeting in Arizona. Langenbach spoke on behalf of the company in negotiating business deals, and on multiple occasions entered into purported deals on behalf of his own company in partnership with Petro. Langenbach frequently spoke for Petro and sought out deals in order to bring purported assets into Petro so as to inflate the value of the stock.
This case was prosecuted by Assistant U.S. Attorneys Daniel M. Nelson and Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, the U.S. Postal Inspection Service and the Office of the Missouri Securities Commissioner.
Arizona Man Pleads Guilty to Trafficking Methamphetamine in New MexicoRead the Press Release
ALBUQUERQUE – Emery Lee Begay, 31, of Lakeside, Ariz., pleaded guilty today in federal court in Albuquerque, N.M., to conspiracy to distribute methamphetamine in Socorro and Catron Counties, N.M. Under the terms of his plea agreement, Begay will be sentenced to 60 months in federal prison followed by not less than three years of supervised release.
Begay and his co-defendant Jorge Luis Garcia-Valenzuela, 22, a Mexican national residing in Lakeside, Ariz., were arrested on Oct. 25, 2014, after they traveled to Quemado, N.M., with the intention of selling methamphetamine and marijuana to undercover officers. According to the complaint, on Aug. 19, 2015, Begay delivered approximately 22.6 grams of methamphetamine and approximately three kilograms of marijuana to the undercover officers in Socorro, N.M., after Garcia-Valenzuela allegedly negotiated the drug deal with the officers. The complaint also alleges that Garcia-Valenzuela and Begay were arrested on Oct. 25, 2014, in Quemado when they arrived to consummate a drug deal with the undercover officers. The officers allegedly seized approximately 800 grams of methamphetamine and more than eight kilograms of marijuana when they arrested the two men.
Begay and Garcia-Valenzuela were subsequently indicted on Nov. 19, 2014, and charged with conspiracy to distribute methamphetamine and marijuana, distribution of methamphetamine and marijuana, and possession of methamphetamine and marijuana with intent to distribute. According to the indictment, the offenses were committed between Aug. 19, 2014 and Oct. 25, 2014, in Socorro and Catron Counties.
During today’s proceedings, Begay pled guilty to a felony information charging him with conspiracy to possess methamphetamine with intent to distribute. Begay has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
Garcia-Valenzuela has entered a plea of not guilty to the complaint and indictment. He remains in federal custody pending his trial which is currently scheduled for July 2015. If convicted on the charges in the indictment, Garcia-Valenzuela faces a statutory mandatory minimum of ten years and a maximum of life in prison. Charges in indictments and complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque and Gallup offices of the FBI, the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Ramah Navajo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Anchorage Man Indicted for Conspiracy to Launder $743,000 in Drug ProceedsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a federal grand jury has indicted another individual in connection with the seizure of large quantities of cocaine, methamphetamine, and cash late last fall. Loeffler indicated that this most recent indictment is related to several other drug trafficking cases announced late last year and that this new charge involves the laundering of nearly three quarters of a million dollars in drug proceeds.
The indictment announced today charges David Frazier, 52, of Anchorage, Alaska with one count of conspiring with others to launder the proceeds of drug trafficking. Frazier is the only defendant charged in the indictment.
According to the indictment, over the course of a four month period in 2013, Frazier worked with his co-conspirators to launder the proceeds earned from the sale of controlled substances. Frazier allegedly laundered the cash in order to promote his and his partners’ continued drug sales. In addition, the indictment alleges that, upon conviction, Frazier must forfeit any property involved in the money laundering scheme, including but not limited to the $743,000 in cash that can be linked to his criminal activities.
Assistant United States Attorney Stephanie Courter, who presented the case to the grand jury, indicated that, if convicted, Frazier faces a sentence of up to 20 years in prison, as well as a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the amount of drugs and money involved and any prior criminal history of the defendant.
This case is being prosecuted by Assistant U.S. Attorney Stephanie C. Courter. The case originated as part of a multi-agency investigation involving the Internal Revenue Service Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Anchorage Police Department (APD), and the Alaska State Troopers (AST), and the Anchorage Airport Police Department.
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 United States must prove guilt beyond a reasonable doubt.
Akron men sentenced to prison for having firearms and bringing heroin from Chicago to AkronRead the Press Release
Two Akron men were sentenced to prison for their roles in a conspiracy that brought heroin from Chicago to be sold around Ravenna and Akron, law enforcement officials said.
Rashid Carter, 30 was sentenced to 15 years in prison.
Laverne Fortson, 40, was sentenced to nine years in prison.
"These two used guns to protect their pipeline of heroin, and used drug houses to spread that heroin throughout Akron," said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“ATF’s primary mission is to reduce violent crime,” said Donald Soranno, Special Agent in Charge for ATF’s Columbus Field Division. “The sentencing of these individuals, who brought guns and drugs into their community, sends the strong message that ATF, with our federal, state, and local partners, will not accept violence as the status quo.”
“These individuals collaborated to deliver poison to our streets and we collaborated to bring them to jail,” said Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office. “This case was another outstanding example of what can be accomplished when local, state and federal agencies work together to protect our community.”
Fortson and Carter received heroin shipments in 2013 and 2014. In turn, they provided the heroin to another dealer distribution in and around Akron and Ravenna, according to court documents.
Carter also purchased heroin from a supplier in the Chicago area for distribution in and around Akron. He and Fortson supplied heroin to several dealers in Akron, some of whom in turn distributed the drug to other dealers. Carter played a role in transporting the heroin and drug proceeds between Chicago and Akron. Fortson provided cash to facilitate the Chicago drug transactions, according to court documents.
Fortson and Carter owned and rented properties in Akron that they used to store, process, and distribute heroin, according to court documents.
It was part of the conspiracy that Fortson and Carter illegally use firearms to protect themselves and their drug proceeds, according to court documents.
Carter illegally possessed a Firestar, .45-caliber pistol, a Taurus, model 85, .38 special revolver and ammunition on June 6, 2014, despite previous convictions for possession of cocaine in Portage County and failure to comply with a police officer in Summit County.
Fortson illegally possessed a Harrington and Richardson 16-gauge shotgun and ammunition on June 18, 2014, despite a previous conviction for aggravated trafficking in Portage County.
This investigation was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Summit County Drug Unit, the Akron Police Department and the Portage County Drug Unit, with assistance from the U.S. Marshal’s Service, the Ohio State Highway Patrol and the Portage County Prosecutor’s Office. The matter is being prosecuted by Assistant U.S. Attorneys David M. Toepfer and M. Kendra Klump.
Wednesday 20 May 2015
Yakama Tribal Member Sentenced for Selling Eagle FeathersRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Benjamin Blue Arquette, age 25, was sentenced following his entry of a guilty plea earlier this year to one count of Commercializing in Eagles in violation of the Bald and Golden Eagle Protection Act (16 U.S.C. § 668(a)). A first offense of Commercializing in Eagles is a Class A misdemeanor, which carries a maximum penalty of one year in jail. Senior District Court Judge William Fremming Nielsen sentenced Arquette to 30 days in jail to be followed by one year of court supervision following his release from incarceration.
On January 12, 2015, Arquette admitted to selling tail feathers from two golden eagles to an undercover officer working with the United States Fish and Wildlife Service. As part of his plea agreement, Arquette admitted telling the officer that he took the eagles while hunting when he came upon a location where someone had been shooting wild horses. Arquette arranged the sale for $1,200 through telephonic and email contacts. As a member of the Confederated Tribes of the Yakama Nation, Arquette can lawfully possess eagle feathers for non-commercial purposes. All members of federally recognized Indian tribes can obtain eagle feathers from a national repository maintained by the United States Fish and Wildlife Service for that purpose. However, it is unlawful for anyone to offer eagle feathers for sale or to sell eagle feathers.
Michael C. Ormsby stated, “Arquette’s guilty plea and sentence added to a growing list of cases involving the commercialization of eagles in the Eastern District of Washington. Similar investigations in recent years have led to convictions in United States v. Maldonado, 14-CR-2065-SMJ, which is scheduled for sentencing on July 29, 2015; United States v. Hawk, 09-CR-02034-001; and United States v. Wahchumwah, 09-CR-02035-001. The United States Attorney’s Office has, and will continue to support the efforts of the United States Fish and Wildlife Service.”
This case was investigated by the United States Fish and Wildlife Service with participation from the Washington Department of Fish and Wildlife, the Washington State Gambling Commission, and the Yakama Nation Tribal Police. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney in the Eastern District of Washington.
Woodstock Woman Pleads Guilty to False Statements in BankruptcyRead the Press Release
ROCKFORD —SOULA APOSTOLOPOULOS, 46, of Woodstock, Ill., formerly of Barrington Hills, Ill., pled guilty today before U.S. District Judge Philip G. Reinhard to making false statements in her bankruptcy case. She was indicted on October 21, 2014, along with her husband, DANIEL APOSTOLOPOULOS.
According to the plea agreement, on March 13, 2010, Soula Apostolopoulos filed a Chapter 7 bankruptcy Petition, and made false statements on the Statement of Financial Affairs that she signed under penalty of perjury. According to the indictment, Soula Apostolopoulos fraudulently concealed income she received from her interest in a Chicago restaurant she previously purchased with her husband, as well as her interest in Wisconsin real estate and in financial accounts during the year preceding the filing of her bankruptcy.
Providing material false statements or documents under penalty of perjury in a bankruptcy case carries a maximum penalty of 5 years in prison, a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. The Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of each defendant beyond a reasonable doubt.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Webster Man Pleads Guilty to Downloading Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that Preston Field, 23, of Webster, NY, pleaded guilty to possession of child pornography before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that from November 2012 to March 2014, the defendant downloaded and stored more than 600 images child pornography, including images portraying sadistic conduct and violence. Field also made his collection available for others to view and download.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Sentencing is scheduled for August 5, 2015, at 9:30, before Judge Geraci.
Tygart valley inmate sentenced for threatening the PresidentRead the Press Release
ELKINS, WEST VIRGINIA – Robert Dale Tasker, 44, an inmate at the Tygart Valley Regional Jail in Belington, West Virginia, was sentenced today to an additional 12 months in prison for threatening the President, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the United States Secret Service revealed that in December 2013, while incarcerated at the Tygart Valley Regional Jail, Tasker wrote a letter threatening to kill the President of the United States. He pled guilty in December 2014 to one count of “Threats Against the President of the United States.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Two Pocahontas County residents sentenced for role in manufacturing methamphetamineRead the Press Release
ELKINS, WEST VIRGINIA – Christina Lee Kimble, 31, and Krystal Eileen Sisler, 27, both of Bartow, West Virginia, were sentenced today for their role in manufacturing methamphetamine in Pocahontas and Randolph Counties., United States Attorney William J. Ihlenfeld, II, announced.An investigation by the Mountain Region Drug and Violent Crime Task Force, the United States Forest Service, the Pocahontas County Sheriff's Office, and the West Virginia State Police revealed that the defendants had each purchased medications containing pseudoephedrine, an ingredient commonly used to produce methamphetamine.
The defendants each pled guilty in December 2014 to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.” Kimble was sentenced today to twelve months and one day prison. Sisler was sentenced today to five years of probation.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Two Mobile Pain Doctors Arrested on Drug and Fraud ChargesRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama, along with FBI-Mobile Special Agent in Charge Robert Lasky, and DEA-Mobile Special Agent in Charge Keith Brown, New Orleans Field Division, announce the arrests of Dr. John Patrick Couch and Dr. Xiulu Ruan.
Dr. Couch and Dr. Ruan are both physicians licensed to practice medicine in the State of Alabama. The doctors jointly own and operate a medical practice named Physician’s Pain Specialists of Alabama (“PPSA”), which has two clinic locations in Mobile — one located at 2001 Springhill Avenue and the other at 4682 Airport Boulevard. Dr. Couch and Dr. Ruan also co-own C&R Pharmacy, which is located adjacent to the PPSA location on Airport Boulevard.
In April 2015, a grand jury in the Southern District of Alabama returned an Indictment charging Dr. Couch and Dr. Ruan with (1) conspiracy to distribute controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, and (2) conspiracy to commit healthcare fraud.
According to the Indictment, Dr. Couch and Dr. Ruan conspired with each other and others to knowingly and willfully distribute and dispense Schedule II controlled substances outside the usual course of professional practice and not for a legitimate medical purpose. The Indictment identifies some of these Schedule II drugs as: oxycodone (brand name: Oxycontin), oxycodone hydrochloride (brand name: Roxicodone), oxymorphone (brand name: Opana), hydromorphone (brand name: Dilaudid), morphine, fentanyl, and methadone.
The Indictment also alleges Dr. Couch and Dr. Ruan engaged in a conspiracy to commit healthcare fraud to increase the health insurance reimbursements received by PPSA. Two means of healthcare fraud are identified in the Indictment. First, the Indictment alleges the doctors routinely ordered extremely expensive secondary urine drug tests, which were billed to patients’ insurance providers under the false pretense that they were necessary tests. However, the Indictment alleges these tests were ordered primarily because of the extremely high rate of reimbursement paid by insurance providers for these tests. Furthermore, the Indictment alleges Dr. Couch and Dr. Ruan engaged a conspiracy to fraudulent up-code, which is where a patient service performed by a physician extender, such as a nurse, is fraudulently billed under the physician’s national provider identifier number. Fraudulent up-coding results in a medical practice receiving more money than it was entitled to, because health insurance providers reimburse patient services at a higher rate when performed by a physician.
In addition to the criminal allegations, the Indictment contains forfeiture notices stating that the United States intends to seek the forfeiture of numerous bank accounts, exotic vehicles, and real property if the defendants are convicted of one or both of these conspiracy offenses.
Along with the arrests of the two doctors and the seizures of assets subject to forfeiture, the FBI and DEA jointly executed search and seizure warrants at five locations, including both PPSA clinics, C&R Pharmacy, a warehouse where Dr. Ruan stored his exotic cars, and Dr. Couch’s house.
“We will remain vigilant in prosecuting doctors who place greed over their Hippocratic Oath to help their patients and are otherwise willing to defraud and undermine the health care programs of the nation,” said United States Attorney Kenyen R. Brown.
“This national organized crime enterprise fleeced the health care system through a wide range of money making criminal fraud schemes,” said FBI SAC Robert F. Lasky. “ The FBI, working in conjunction with our federal agency partners, is resolute in its commitment to stop those who would illegally manipulate the health care system.”
"Prescription drug abuse is the fasting growing drug problem in the country. It is particularly troubling to find doctors so complicit in this epidemic. We trust our doctors to heal our bodies, not poison our communities. We will not tolerate or accept this illegal behavior, and we will bring justice to those that condone this type of practice," said DEA Assistant Special Agent in Charge Clay A. Morris.
As in all criminal cases, an Indictment is only an allegation made by a grand jury. Both Dr. Couch and Dr. Ruan are presumed innocent until proven guilty.
This matter was jointly investigated by FBI-Mobile and DEA-Mobile, and the case will be prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Two Former Watch Manufacturer Employees Charged with Using False Invoicing Scheme to Steal Company MerchandiseRead the Press Release
NEWARK, N.J. – Two former employees of a Bergen County, New Jersey, watch manufacturer were charged today with orchestrating a scheme to defraud their employer out of hundreds of thousands of dollars of watches and watch parts using falsified documents and doctored corporate records, U.S. Attorney Paul J. Fishman announced.
Cynthia Espejo, 49, of Kissimmee, Florida, and Lissette Delarosa, 36, of Woodland Park, New Jersey, are each charged by criminal complaint with one count of conspiracy to commit mail fraud. Espejo is scheduled to appear this afternoon before U.S. Magistrate Judge Karla R. Spaulding in Orlando, Florida, federal court. Delarosa is scheduled to appear this afternoon in Newark federal court.
According to the criminal complaint:
From May 2003 through July 2010, Espejo and Delarosa abused their positions in the manufacturer’s Bergen County customer service department to fraudulently obtain company merchandise. Espejo and Delarosa created hundreds of fictitious invoices for watch parts in the manufacturer’s invoice system and directed those parts to be sent to addresses associated with Espejo, Delarosa, and others. The watch manufacturer received no payment related to these invoices and no legitimate basis existed for providing the parts free of charge.
Espejo and Delarosa also created dozens of fictitious customer complaints in the watch manufacturer’s invoice system, which resulted in “replacement” watches being shipped to addresses associated with Espejo and Delarosa.
The mail fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount of loss caused by the offense.
U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation.
The government is represented by Special Assistant U.S. Attorney Andrew R. Tyler of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Tulsa Woman Sentenced to 36 Months Probation, $5,200 Restitution for Embezzlement and Theft from Indian Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that LaDONNA JANE BURNS, age 44, Tulsa, Oklahoma, was sentenced to 3 years of probation for Embezzlement and Theft From An Indian Tribal Organization. Burns was also ordered to pay $5258.40 in restitution to the victim.
The charges are a result from an investigation by the Creek Nation Lighthorse Police and the Federal Bureau of Investigation. The defendant was indicted in November 2014 and pled guilty in December 2014.
The Indictment alleged that from on or about April 1, 2013, until on or about September 17, 2013, in the Eastern District of Oklahoma, the defendant, being an employee of the Checotah Muscogee Indian Community, an Indian Tribal Organization, did embezzle, steal, willfully misapply and willfully and knowingly convert to her own use more than $1,000.00 of the moneys, funds and credits belonging to the said Indian Tribal Organization.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
Tucson AZ Man Sentenced to 87 Months for Methamphetamine and Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ISMAEL COBIAN MENDOZA, age 42, of Tucson, Arizona, was sentenced to 87 months imprisonment, followed by 3 years of supervised release for Possession with Intent to Distribute Methamphetamine and Marijuana.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration. The defendant was indicted in November, 2014 and pled guilty in January, 2015.
The Indictment alleged that on or about November 3, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute five hundred (500) grams or more of methamphetamine, a Schedule II controlled substance and less than fifty (50) kilograms of marijuana, a Schedule I controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Three MS-13 Gang Members Indicted on Racketeering ChargesRead the Press Release
A 29-count superseding indictment was unsealed yesterday in federal court in Central Islip, New York, charging MS-13 members Edwin Acosta-Martinez (“Scarface”), Sergio Cerna (“Taz” and “Lechon”), and Arnolvin Umanzor Velasquez (“Momia” and “Lito”), with the November 2, 2011 murder of Brandon Sotomayor in Baywood, NY, the December 18, 2011 double-murder of two brothers, Enston and Ricardo Ceron, in Brentwood, NY, four attempted murders which took place between May and December 2011, and multiple racketeering offenses related to those murders and attempted murders. The superseding indictment was returned under seal by a federal grand jury on May 13, 2015.
Velasquez was arrested yesterday morning in Flowery Branch, Georgia, by a Federal Bureau of Investigation SWAT team, and he was arraigned before United States Magistrate Judge E. Clayton Scofield, III, at the federal courthouse in Atlanta, where he was ordered to be removed in custody to the Eastern District of New York. Cerna and Acosta-Martinez are already in federal custody and will be arraigned this afternoon and next week, respectively, before United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip.
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, FBI, New York Field Office.
“The execution-style killings of Brandon Sotomayor and the Ceron brothers, as well as the attempted murders charged in this superseding indictment, demonstrate the callous depravity of the MS-13,” stated Acting United States Attorney Currie. “This Office and the FBI’s Long Island Gang Task Force will continue to investigate and prosecute the MS-13 to ensure that the gang members are held accountable for their brutal acts.” Mr. Currie expressed his appreciation for the assistance provided by the United States Attorney’s Office for the Northern District of Georgia and the FBI’s Atlanta Field Office.
“MS-13 is a scourge on our communities. As alleged, the three defendants charged today with murder demonstrate the extraordinary violence of this gang. We continue to work with prosecutors and local law enforcement on Long Island to arrest and prosecute members of MS-13,” stated Assistant Director-in-Charge Rodriguez.
Cerna was charged in the underlying indictment with racketeering and firearms offenses relating to the May 12, 2011 and September 11, 2011 attempted murders of two suspected rival gang members, and an October 23, 2011 conspiracy to murder rival gang members which resulted in two men being shot and wounded. The superseding indictment adds charges against Cerna and Velasquez in connection with the December 18, 2011 murders of the Ceron brothers, Enston and Ricardo. As set forth in prior court filings and a detention letter, the Brentwood clique of the MS-13 (“BLS”) killed Enston Ceron because he was distancing himself from the gang by not attending meetings or “putting in work” for the gang, and they were concerned that he might cooperate with law enforcement authorities if he were arrested. The BLS clique also murdered his brother, Ricardo Ceron, who belonged to the Western clique of the MS-13, because they were concerned he would retaliate if he learned that the BLS killed his brother. On December 18, 2011, Cerna and Velasquez, who volunteered to carry out the murders and were armed with 9mm and .22 caliber semi-automatic handguns, asked Enston and Ricardo Ceron for a ride home from a party. When the car stopped in the vicinity of Lincoln Avenue and Stockton Streets in Brentwood, Cerna and Velasquez executed them, shooting them in the head and torso at close range. Cerna and Velasquez exited the car and when another vehicle approached the murder scene and stopped, Cerna fired multiple shots at the driver, striking him once in the chest. The driver survived the shooting.
Following the Ceron brothers’ murders, the BLS clique blamed the killings on the rival Latin Kings street gang and plotted a retaliation shooting with members of the Huntington clique of the MS-13, including Acosta-Martinez. On December 22, 2011, Acosta-Martinez and two other MS-13 members observed two suspected members of the Latin Kings in Brentwood. Acosta-Martinez, who was armed with a 9mm semi-automatic handgun, is charged with shooting one of the men in the arm before the suspected Latin Kings members fled. The victim survived that shooting.
Acosta-Martinez was also indicted in connection with his participation in the November 2, 2011 murder of Brandon Sotomayor and a series of armed robberies in 2011 and 2012. On the night of the Sotomayor murder, Acosta-Martinez and another MS-13 member, who was a juvenile at the time, agreed to “put in work” for the MS-13 by killing a rival gang member. Acosta-Martinez and his co-conspirator were armed with the same 9mm and .22 caliber semi-automatic handguns used to murder the Ceron brothers. While in the vicinity of Reilly Street in Baywood, Acosta-Martinez and his co-conspirator saw a car with three people, including Sotomayor, who was wearing a red hat and who they believed to be a member of the rival Bloods street gang. Acosta-Martinez and his co-conspirator approached the car and fired numerous shots at Sotomayor, striking him multiple times in the neck and torso and killing him.
The defendants are also charged with additional racketeering offenses, including assaults, obstruction of justice, armed robbery, and related firearms and conspiracy counts.
The superseding indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador and Honduras. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2003, more than 250 MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 150 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 25 murders in the Eastern District of New York, and has convicted dozens of MS-13 members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, and Rockville Centre Police Department.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face life in prison or the death penalty.
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham and Raymond A. Tierney of the Long Island Criminal Division.
The Defendants:
EDWIN ACOSTA-MARTINEZ (“Scarface”)
Age: 26
Huntington Station, New York
SERGIO CERNA (“Taz” and “Lechon”)
Age: 31
Brentwood, New York
ARNOLVIN UMANZOR VELASQUEZ (“Momia” and “Lito”)
Age: 22
Brentwood, New York and Flowery Branch, Georgia
E.D.N.Y. Docket No. 15-CR-087 (S-1)(JFB)
Thirty-seven MS-13 Gang Members Indicted on Racketeering Conspiracy Charges ; Some Also Charged with Murder, Attempted Murder, and Firearms ViolationsRead the Press Release
CHARLOTTE, N.C. – Thirty-seven members of the street gang “La Mara Salvatrucha,” or “MS-13,” have been indicted by a federal grand jury on racketeering conspiracy charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Twenty-two defendants have also been charged variously with additional offenses, including murder, attempted murder, assault, and firearms violations.
This morning, law enforcement arrested 16 of the alleged gang members during an early morning round-up. Five remain at large and are subject to active arrest warrants. Another 16 are currently in state custody on various state charges.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Ryan L. Spradlin, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta; Mark Senter, Branch Head of the North Carolina Alcohol Law Enforcement; Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department; and Mecklenburg County District Attorney Andrew Murray join Acting U.S. Attorney Rose in making today’s announcement.
“As outlined in today’s indictment, the alleged MS-13 gang members have committed numerous violent crimes, including armed robberies, assaults, and murders, for the benefit of the criminal enterprise. Today’s charges send a clear message to gangsters who think their gang affiliation puts them beyond the law’s reach. Prosecutors and law enforcement officers will continue to work hand-in-hand to identify and prosecute gang offenders whose violent acts create mayhem in our streets and devastate communities,” said Acting U.S. Attorney Rose.
“The arrest of these MS-13 gang members is part of a coordinated law enforcement effort to eradicate gang violence in North Carolina. Innocent families should not suffer because of the callous and violent actions of others. The FBI will pursue those criminal offenders who impact the safety and stability of our neighborhoods, no matter their gang affiliation,” said John Strong, Special Agent in Charge of FBI Charlotte.
“Transnational criminal gangs like MS-13 inflict untold damage in our communities by engaging in violence and trafficking in drugs, weapons and even human beings,” said Ryan L. Spradlin, Special Agent in Charge of ICE Homeland Security Investigations (HSI) in Atlanta. “This lengthy investigation has uncovered alleged crimes ranging from petty drug deals to capital murder. There is no doubt that North Carolina communities will be safer as a result of these arrests.”
“The partnerships between my office, the U.S. Attorney’s Office and both federal and local law enforcement reflect our dedication to ensuring that collaborative investigations and prosecutions target violent crime on our streets,” said Mecklenburg County District Attorney Andrew Murray. “We’ll continue to work together as we pursue justice for those affected by crime and protect the community from future harm.”
“The success of this roundup should be attributed to the strength of these law enforcement partnerships and send a clear message to gang members that all of us are working together in our pursuit to put the criminals out of business for the betterment of our communities,” said Mark Senter, NC Alcohol Law Enforcement branch head.
The indictment charges each of the 37 alleged gang members with one count of Racketeering Influenced Corrupt Organization (RICO) conspiracy. The named defendants are:
- Carlos Almote a/k/a “Rabioso,” 25, of Charlotte. (in state custody)
- Jose Danny Argueta a/k/a “Shadow,” 23, of Charlotte. (in state custody)
- Miriam Barilles-Escamilla a/k/a “Gata,” 26, of El Salvador. (not arrested)
- Juan Bergamasco-Suarez a/k/a “Temper” or “Kilo,” 21, of Charlotte. (in state custody)
- Milton Chavarria a/k/a “Syko,” 23, of Charlotte. (in state custody)
- Raul Contreras a/k/a “Smoke,” 24, of Charlotte. (in state custody)
- Luis Erazo a/k/a “Joker,” 24, of Honduras. (arrested)
- Marvin Fuentes-Canales a/k/a “Crazy,” 22, of El Salvador. (not arrested)
- Luis Funes-Rivera a/k/a “Demonio,” 20, of Charlotte. (in state custody)
- Jorge Garcia a/k/a “Shorty,” 25, of Charlotte. (arrested)
- Cesar Garcia-Perez a/k/a “Vikingo,” 35, of Charlotte. (in state custody)
- Saul Gavidia a/k/a “Scrappy,” 20, of Landis, N.C. (arrested)
- William Gavidia a/k/a “Duro,” 23, of Kannapolis, N.C. (arrested)
- Raul Guardado a/k/a “Guanaco,” 42, of Charlotte. (arrested)
- Neris Gutierrez a/k/a “Oso” or “Furioso,” 26, of Guatemala. (not arrested)
- Angel Hernandez a/k/a “Taz” or “Magic,” 24, of Rock Hill, S.C. (arrested)
- Jose Manuel Linares a/k/a “Chepito,” 21, of Charlotte. (arrested)
- Rene Lopez-Ventura a/k/a “Mafioso,” 32, of Charlotte. (arrested)
- Jose Moran-Celis a/k/a “Lil Silent,” 20, of Charlotte. (arrested)
- Daniel Navarro a/k/a “Lunatico,” 21, of Charlotte. (in state custody)
- Jonathan Noble a/k/a “Ghost,” 22, of Charlotte. (arrested)
- Luis Ordonez-Vega a/k/a “Big Boy,” 36, of Concord, N.C. (in state custody)
- Christian Pena a/k/a “Pitbull,” 19, of Charlotte. (in state custody)
- Jorge Perez a/k/a “JP Bukie,” 30, of Charlotte. (arrested)
- Victor Pineda a/k/a “Chele,” 23, of Charlotte. (arrested)
- Rosendo Rivas a/k/a “Jester,” or “Demonio” or “Nene” 24, of Rock Hill. (in state custody)
- Fec Rodriguez-Vareal a/k/a “Chelito,” 28, of Charlotte. (arrested)
- Salvador Ruiz a/k/a “Chava,” 26, of Kannapolis. (not arrested)
- Jorge Sosa a/k/a “Koki” or “Loco,” 23, of Charlotte. (in state custody)
- Oscar Trejo a/k/a “Trigger” or “Maliente,” 23, of Charlotte. (in state custody)
- Jaime Turcios a/k/a “Pitufo” or “Smurf,” 24, of Charlotte. (arrested)
- Jose Vasquez a/k/a “Muneco,” 26, of El Salvador. (arrested)
- Marlon Vasquez-Maldonado a/k/a “Gangster,” 23, of Charlotte. (in state custody)
- Albert Vela-Garcia a/k/a “Conejo,” 25, of Landis. (arrested)
- Luis Villalta a/k/a “Little Psycho,” 25, of El Salvador. (not arrested)
- Alexis Villalta-Morales a/k/a “Rikichi,” 23, of Charlotte. (in state custody)
- Miguel Zelaya a/k/a “Most Wanted,” 19, of Charlotte. (in state custody)
In addition to the RICO conspiracy charge, three defendants face murder in aid of racketeering and related charges, Zelaya for the murder of Jose Orlando Ibarra, and Ordonez-Vega and Pena for the murder of Noel Navarro Hernandez. Ten defendants – Argueta, Garcia, Linares, Funes-Rivera, Ruiz, Sosa, Trejo, Vasquez, Vela-Garcia, and Villalta-Morales – are also charged with attempted murder in aid of racketeering and related charges.
According to the allegations contained in the 41-count indictment:
From at least in or about 2009 to present in Mecklenburg County and elsewhere, the defendants were members of the MS-13 gang, a criminal organization with over 6,000 members in the United States and 30,000 members internationally. MS-13 originated in Los Angeles, California, and has spread to states across the country, including in North Carolina. The gang’s members are mostly immigrants or descendants of immigrants from El Salvador and other Central and Latin American countries. MS-13 in North Carolina is divided into different groups, or “cliques,” identified by names such as “Charlotte Locotes Salvatrucha,” and “Centralles,” among others. The different cliques work together to carry out criminal acts, to protect the interests of the criminal enterprise, and to assist each other in avoiding law enforcement detection. The group leaders are often called “shot callers” or “voices,” and they are tasked with passing down information and orders from leaders higher in the gang hierarchy. Group leaders also act to resolve disputes, address organizational issues, and to participate in gang decisions, including the assault or murder of those suspected of cooperating with law enforcement, known as “green light.”
MS-13 members adhere to a set of gang rules and pay dues which fund the gang’s criminal activities and support other gang members or their families in the U.S and abroad. Gang members are also expected to protect the name, reputation, and status of the gang and its members, and to punish through acts of violence and intimidation those who disrespect the gang. Some MS-13 members signify their affiliation with the gang by wearing blue, black and white color clothing and certain “Mara Salvatrucha,” or “MS-13” tattoos.
As alleged members of MS-13, the defendants charged in the indictment held multiple meetings at various times, to discuss gang-related matters and to plan the commission of future crimes for the benefit of the gang. As outlined in the indictment, over the relevant time period, the defendants allegedly were responsible for numerous criminal acts including drug distribution, armed robberies, extortion, illegal possession of weapons, the assault of individuals suspected of cooperating with law enforcement and murder.
Specifically, the indictment alleges that on December 18, 2013, Zelaya allegedly murdered Jose Orlando Ibarra in Charlotte, whom he believed to be a member of a rival gang, and on or about June 6, 2014, also in Charlotte, Pena and Ordonez-Vega allegedly murdered Noel Navarro Hernandez. According to the indictment, on April 23, 2011, Contreras murdered Rigoberto Castillo in Rock Hill, S.C., and on June 23, 2013, in Charlotte, Garcia-Perez shot and killed Alejandro Sebastian Alvarez, a rival gang member. Contreras and Garcia-Perez were prosecuted on state charges for those murders.
The indictment contains a notice of special sentencing factors, which provides for a greater sentence for those defendants charged with offenses related to the murders. A chart identifying each defendant’s charges and maximum penalties is attached below. The defendants’ sentences will be determined by the Court, after considering the federal sentencing guidelines and statutory sentencing factors.
The defendants arrested today have begun making their initial appearances in Charlotte before a U.S. Magistrate Judge. The defendants currently in state custody will be transferred to the custody of the U.S. Marshals to appear in court on the federal charges.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Acting U.S. Attorney Rose praised the outstanding investigative work of the FBI, HSI, CMPD and ALE and noted that the investigation is still ongoing.Ms. Rose also thanked the Mecklenburg County District Attorney’s Office for their continued support and cooperation with this case.
Assistant U.S. Attorneys Elizabeth Greene and William Miller are in charge of the prosecution.
Telemarketer Sentenced for Role in Marketing Non-FDA Approved Drugs in United StatesRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Naresh Kumar Chintala (33, India) to 30 months in federal prison for conspiracy to commit wire fraud and to dispense prescription drugs without a prescription. He pleaded guilty on February 23, 2015.
According to court documents, Chintala worked for an India-based company that marketed drugs, both prescription and otherwise, to customers in the United States by means of telemarketing. The representations made by the marketers about these drugs claimed that the drugs were made in the United States and FDA-approved. In reality, the drugs were neither. In some instances, the drugs sold through this marketing scheme were prescription medications, but the company required no medical prescription for the sale. The medications ordered by the customers were shipped to them from India, in parcels bearing false labels as to the nature of their contents. Chintala traveled to the United States in late 2014 on company business and was arrested in Jacksonville, Florida.
This case was investigated by the United States Food and Drug Administration. It was prosecuted by Assistant United States Attorneys Jay L. Hoffer and Mark Bini.
Strip Club Operators Charged with Conspiring to Promote Prostitution and to Defraud the IRSRead the Press Release
PORTLAND, Ore. – Today a federal grand jury returned a superseding indictment charging Lawrence George Owen, 73, of La Paz, Mexico, and Gary Bryant, 67, of Estacada, Oregon, with conspiring to defraud the IRS of more than $1.5 million in unpaid income and payroll taxes stemming from the operation of strip clubs and other adult-oriented businesses in the Portland metropolitan area between January 2006 and June 2010. The grand jury also charged Owen with conspiring to use facilities of interstate commerce to promote illegal acts of prostitution at the businesses throughout that period. The U.S. Attorney also filed a criminal Information charging Kandace Desmarais, 63, and Gilbert “Mace” Desmarais, 50, both of Milwaukie, Oregon, with participating in both conspiracies.
The superseding indictment and information allege that, by January 2006, Lawrence Owen and Gary Bryant, along with Kandace Desmarais and Gilbert Desmarais (two of Owen’s stepchildren) managed eleven adult-oriented businesses. The businesses, which accepted cash only, included eight strip clubs (the Landing Strip, Dillinger’s Pub, the Oh! Zone, Sugar Shack, Sugar Shack Too, Peek-a-Boos, Tommy’s, and Tommy’s Too), two stores offering pornographic videos and sex toys (Video Visions and Video Visions Plus), and a restaurant featuring Oregon Lottery games (Pelican Bay).
The strip clubs featured totally nude female dancers who paid the management “stage fees” of $15 for every shift they worked. In addition, most of the strip clubs either had enclosed rooms for “private shows” with the dancers or were adjacent to affiliated businesses with such rooms. Customers could arrange for 30-minute “private shows” with the dancers by paying $60 to the house and at least $100—often several times that amount—to the dancers. In fact, the “private shows” frequently involved illegal acts of prostitution paid for with cash from the conspirators’ ATMs.
The grand jury and U.S. Attorney alleged that the conspirators concealed more than five million dollars in receipts from the IRS—and fraudulently avoided $1.5 million in income taxes—between January 2006 and June 2010, largely by failing to report income from dancers’ “stage fees” and the payments for “private shows.” The businesses also failed to pay payroll taxes for numerous employees who were paid only in cash without any record of employment or wages.
The charges culminate an investigation by the Internal Revenue Service Criminal Investigation (IRS-CI) spanning more than five years. In June 2010, IRS-CI agents executed search warrants at all of the businesses and the homes of many of the conspirators. The agents seized more than $800,000 in cash and records of more than 35,000 “private shows” at the businesses over the course of the charged conspiracy.
Each charge carries a maximum sentence of five years in prison. If convicted, defendants Lawrence Owen, Kandace Desmarais, and Gilbert Desmarais face a maximum of ten years in prison, and Gary Bryant faces a maximum of five years in prison.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The Portland Police Bureau assisted IRS-CI with this investigation. Assistant U. S. Attorneys Seth D. Uram and Ryan W. Bounds are prosecuting the case.
Strategy to Reduce District of Columbia’s Sewer Overflows will Include Green InfrastructureRead the Press Release
The Department of Justice, the Environmental Protection Agency (EPA), the District of Columbia and DC Water today announced an agreement to modify a 2005 federal consent decree allowing DC Water to incorporate green infrastructure in its long-term strategy for curtailing combined sewer overflows (CSOs).
The modification, filed yesterday in federal district court in Washington, D.C., gives DC Water the go-ahead to pursue an integrated green/gray infrastructure approach to address water quality issues in the Rock Creek and Potomac watersheds resulting from combined sewer overflows. This integrated approach utilizes green infrastructure in a targeted and sound engineering manner to reduce combined sewer overflows. Green infrastructure uses vegetation, soils and natural processes that mimic nature, to soak up and store rainwater water where it falls to control wet weather pollution and create healthier urban environments.
“This innovative plan will significantly reduce sewer overflows into our rivers and capture rainwater in the area’s ecologically important watersheds,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This plan puts Washington, D.C. among America’s green city innovators, and it reflects the Justice Department’s and EPA’s commitment to work with cities to safeguard public health, adapt to climate change, and improve aging sewer infrastructure using smart and environmentally sound solutions.”
“This modification represents significant efforts by all the parties to make green infrastructure an integral part of the solution to curtailing sewer overflows and protecting urban waters,” said Regional Administrator Shawn M. Garvin for EPA. “We expect that the green infrastructure components of this modification will provide a model of sustainability for others to follow.”
The green infrastructure projects in Rock Creek and Potomac watersheds are slated to begin in 2015 and 2016 respectively, providing more immediate pollution reductions, enhancements to community livability and green jobs opportunities.
Specifically the consent decree modification includes:
- Using green infrastructure to retain the first 1.2 inches of rainwater on 365 acres in the Rock Creek area and 133 acres in the Potomac watershed.
- Potentially eliminating the Rock Creek storage tunnel and significantly decreasing the size of the Potomac tunnel depending upon the success demonstrated by green infrastructure.
- The district providing the public space necessary for DC Water to construct the proposed green infrastructure projects and making changes to district regulations, codes, standards, guidelines and policies needed for implementation.
- Requiring the district and DC Water to work together to coordinate capital projects and expenditures for implementing green infrastructure, enabling the efficient use of resources and minimizing costs to rate-payers and taxpayers.
As part of the agreement, DC Water will have an additional five years to complete implementation in the Potomac and Rock Creek watersheds beyond those provided for in the original 2005 consent decree, which established a compliance schedule to construct tunnels in the Anacostia, Potomac and Rock Creek watersheds. The schedule for completing the Anacostia tunnel remains unchanged.
Under this consent decree, DC Water will continue moving forward under this consent decree on the construction of the overall CSO control project which is known as the Clean Rivers Program. This program involves completion of, in addition to the components described above, control structures and tunnels for the Anacostia watershed, which contributes more than 65 percent of the sewage discharged to District waters annually. Major portions of this tunnel system are scheduled for completed and in operation in 2018. When the Anacostia tunnel complex is fully completed in 2025, it will nearly eliminate combined sewer overflows to the Anacostia in an average rainfall year.
In November 2011, DC Water proposed to EPA to incorporate green infrastructure into its overflow control strategies for the Potomac and Rock Creek watersheds. As part of the request, DC Water submitted analysis demonstrating that modified CSO controls in the Potomac and green infrastructure in Rock Creek could provide equivalent pollution reductions to those in the original plan and were economically feasible.
In early 2014, after conducting a public participation process, DC Water filed a request to EPA to modify the plan for CSO controls and deadlines set forth in the 2005 consent decree. During the consent decree modification discussions, DC Water has continued to move forward in a timely fashion to enhance its nutrient reduction treatment systems at the Blue Plains Advanced Wastewater Treatment Plant. This is an important element of the Chesapeake Bay watershed restoration effort because the Blue Plains facility is the largest point source of nutrient pollution in the Chesapeake Bay drainage area.
The proposed consent decree modification is subject to a 30-day public comment period once it is published for public notice in the federal register and must be approved by the court. The proposed consent decree modification will be available at: www.justice.gov/enrd/consent-decrees
- Using green infrastructure to retain the first 1.2 inches of rainwater on 365 acres in the Rock Creek area and 133 acres in the Potomac watershed.
Statement by U.S. Attorney John Walsh Regarding Heroin RoundupRead the Press Release
DENVER – Today U.S. Attorney John Walsh issued the following statement and list of those indicted and arrested as part of the announcement of federal and state indictments and arrests of the Ruelas-Torres Drug Trafficking Organization:
“This operation represents the gold standard for federal state cooperation and investigation of drug trafficking organizations. The Colorado Attorney General’s Office and the United States Attorney’s Office worked hand–in hand with the federally funded Denver OCDETF Strike Force, most importantly teaming up with the DEA, IRS, FBI, HSI, Colorado State Patrol and other key agencies.
“The federal indictment has a specific goal: Through these federal money laundering and financial charges, we aim to strangle this heroin-trafficking organization both in Colorado and in Mexico by depriving it of the oxygen it needs – money.
“Let’s not understate the pain, suffering and death that heroin traffickers are causing here in Colorado. Colorado is in the midst of a heroin epidemic – the number of heroin overdose deaths skyrocketed from 2003 to 2012 by 600%. In 2013 alone, at least 118 Coloradans died of overdoses in which heroin played a role. In 2014, the situation was even worse: 147 Coloradans died of heroin-related overdoses, a 25% increase in one year. Since 2010, the Colorado Department of Health believes that nearly 500 [481] Coloradans have died from heroin overdoses. This is a disaster hiding in plain sight.
“The U.S. Attorney’s Office has obtained federal grand jury indictments charging 17 defendants. The federal charges focus on the large scale criminal enterprise and the illegal money laundering activities. Of those named in the federal indictment, 6 are in custody, and 11 remain at large, of which we believe 6 are in Mexico.
“I’d like to thank the Colorado Attorney General’s Office – including the Attorney General and her prosecutors, along with our team at the U.S. Attorney’s Office. And critically, Colorado owes special thanks and appreciation to the Organized Crime & Drug Enforcement Task force-funded Denver Strike Force team, including the DEA, IRS Criminal Investigation, FBI, Homeland Security Investigations, Colorado State Patrol, Northern Colorado Drug Task Force, West Metro Drug Task Force, the Denver Police Department and the Aurora Police Department. Together, we have disrupted a well-organized highly sophisticated drug trafficking organization.”
Those named in the federal indictment:
JOEL EFREN RUELAS-AVILA, a/k/a “Efren,” (fugitive in Mexico)
JOSE LUIS RUELAS-TORRES, (fugitive in Mexico)
MARIA DE JESUS ESPINOZA-RODRIGUEZ, a/k/a “Maria,” (fugitive in Mexico)
BETITO LAST NAME UNKNOWN, (fugitive in Mexico)
JOSE CARLOS BARRAZA-ACEVES, a/k/a “Luis 2525,” (fugitive in Mexico)
HECTOR LIBRADO RIVERA-SANDOVAL, (fugitive in Mexico)
LEO DELFIN, (fugitive)
PEDRO ARMANDO GUTIERREZ-NUNEZ, a/k/a “Carlos 4109,” (arrested)
RAUL ESTRADA-CASTILLO, a/k/a “Javier Rios,” a/k/a “Irvin,” a/k/a “Ramon,” (arrested)
IVAN HARO-PEREZ, a/k/a “Ivan,” (fugitive)
JOSE VIDAL LEON-PENUELAS, a/k/a “Vidal,” (fugitive)
CARLOS ALBERTO PEREZ-GARCIA, (arrested)
PABEL ERBEY BERNAL-LOPEZ, (fugitive)
YAJAHIRA MELISSA LOPEZ-CALIDONIO, a/k/a “Melissa,” (arrested)
LIGIA LOPEZ-PEREZ, (fugitive)
NELI YANIRA CALIDONIO-MEZA, a/k/a “Neli.” (arrested)
MARTIN RODRIGUEZ-SANCHEZ (fugitive)South Euclid woman sentenced to five years in prison for identity theft and fraudRead the Press Release
A South Euclid woman was sentenced to five years in prison for identity theft, wire fraud and bank fraud related to a $70,000 scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service, Cincinnati Field Office.
Keauna Smith, 29, pleaded guilty to seven counts earlier this year.
She stole the identities of 16 people between 2012 and 2104. She used these stolen identities to file 18 false tax claims of approximately $44,306. She had the money loaded onto prepaid debit cards and then withdrew the money at various ATMs, according to the court documents.
Smith also illegally obtained approximately $26,300 this year by taking checks from her employer, made them payable to herself and then forged the owner’s signature on the checks, according to court documents.
“This defendant is accused of stole from private citizens, the federal government and her employer,” Dettelbach said. “Her ride of theft ends in federal prison.”
“Individuals who commit identity theft and refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” Enstrom said. “Keauna Smith caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by the Internal Revenue Service – Criminal Investigations.
Slidell Man Sentenced to 30 Months for Money LaunderingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICHARD ZANCO, age 44, of Slidell, was sentenced today after previously pleading guilty to money laundering.
U.S. District Judge Susie Morgan sentenced ZANCO to thirty months imprisonment to be followed by three years of supervised release.
According to court documents, in about May 2012, ZANCO learned that someone had opened a brokerage account in his name and used that account to acquire collateralized mortgage obligations (CMOs), a type of bond, by fraudulent means. Even though he knew that the CMOs did not belong to him, ZANCO gained control of the accounts and arranged for the interest proceeds of the CMOs to be diverted to other financial accounts under his control. Between March 11, 2013, and September 19, 2013, ZANCO illegally used the funds, in the amount of approximately $343,998.82, to engage in a variety of financial transactions, including the purchase of multiple automobiles and one or more boats.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Six Indicted for Jewelry Store Heist that Included a Carjacking and KidnappingRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted six men in connection with a conspiracy to rob a jewelry store that included a carjacking and kidnapping. The indictment was returned on May 12, 2015 and unsealed today.
The following individuals are charged in the indictment:
Stanislav (Steven) Yelizarov, age 25, of Pikesville, Maryland;
Alexsey (Losha) Sosonko, age 34, of Owings Mills, Maryland;
Igor Yasinov, age 25, of Baltimore;
Grigoriy (Greg) Zilberman, age 24, of Owings Mills;
Peter Magnis, age 27, of Hydes, Maryland; and
Marat (Mike) Yelizarov, age 26, of Pikesville.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the six count indictment, from November 2012, through February 2013, the defendants planned and organized the robbery of an Owings Mills jewelry store, in order to sell the stolen goods for cash.
The indictment alleges that the defendants gathered intelligence, including conducting surveillance and the use of a GPS device that was attached to the car of an employee of the jewelry store, prior to the robbery in order to learn the employee’s travel routine and habits. According to the indictment, on January 16, 2013, as the employee was driving from Zilberman’s home, S. Yelizarov, Sosonko, Yasinov, and Magnis drove a rented SUV and used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the defendants allegedly removed the employee from his car, taking his car keys and the keys to the jewelry store. S.Yelizarov, Sosonko, Yasinov, and Magnis allegedly bound and blindfolded the employee, put him into the trunk of his own car and drove him to a predetermined location. According to the indictment, once at the location, S.Yelizarov, Sosonko, Yasinov, and Magnis brandished firearms and demanded the code to the jewelry store’s alarm system. During the abduction and robbery the defendants allegedly wore masks and gloves to conceal their identities.
At approximately 3:52 a.m., the indictment alleges that S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, where M. Yelizarov and another person were stationed nearby to act as “look-outs.” S. Yelizarov and Sosonko allegedly used the employee’s key and the alarm code forcibly obtained from the employee to enter the jewelry store. Jewelry, stones and watches, valued at about $500,000, were stolen from the store.
The indictment alleges that over the next few days, S. Yelizarov sold a portion of the items stolen from the jewelry store, both in Maryland and in Brooklyn, New York, receiving in excess of $129,000 in cash, which S. Yelizarov divided among the conspirators and others. According to the indictment, at the direction of S. Yelizarov, M. Yelizarov, Sosonko, and others removed guns and other evidence of the crimes from S. Yelizarov’s residence.
The defendants each face a maximum sentence of life in prison for the kidnapping conspiracy and the kidnapping and for carrying and brandishing a firearm in relation to a crime of violence. The defendants each face 15 years in prison for the carjacking. Initial appearances were held today for Sosonko and M. Yelizarov in U.S. District Court in Baltimore and they were detained pending detention hearings scheduled for May 26, 2015 and May 21, 2015, respectively. Zilberman is scheduled to have his initial appearance on May 21, 2015. S. Yelizarov, Yasinov and Magnis are currently detained on unrelated state charges. Their initial appearances on the federal indictment will be scheduled for some time in June.
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.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.
Sidney Man Sentenced to Seven Years on Pharmacy Robbery ChargesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Dominic J. Pomerleau, 22, of Sidney, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to seven years in prison and three years of supervised release for pharmacy robbery and attempted pharmacy robbery. He pleaded guilty to the charges on January 23, 2015.
Court records show that on the evening of September 2, 2014, Pomerleau attempted to rob the Rite Aid Pharmacy located on North Belfast Avenue in Augusta, Maine. He approached the pharmacy counter and handed the pharmacist a note that read, “I Have a gun don’t push the button or I’ll shoot give me Oxycodone 30 mg & 15 mg and Ridilin 20 mg Hurry make it a minute or less act normal.” As the pharmacist was getting the pills, the phone rang and another employee answered it. Pomerleau left the pharmacy before the pharmacist had time to give him any pills. About 20 minutes later, Pomerleau robbed the Rite Aid Pharmacy located on Hospital Street in Augusta. He approached the pharmacy counter with a note that demanded oxycodone and absconded with three bottles of oxycodone. Both encounters were captured on surveillance video and witnesses provided descriptions of Pomerleau and his distinctive arm and neck tattoos.
The investigation was conducted by the Augusta Police Department and the Federal Bureau of Investigation.
Seventy-One Defendants Charged in Long-Running Investigation of Grape Street Crips Street GangRead the Press Release
Seventy-one people have been charged in connection with a long-running, coordinated federal, state and local investigation into the New Jersey set of the Grape Street Crips, a street gang allegedly responsible for violence and wide-spread drug trafficking in the northern New Jersey, announced U.S. Attorney Paul J. Fishman of the District of New Jersey.
Today’s charges and arrests culminate three waves of arrests that started May 6, 2015, and resulted in 14 federal complaints charging 50 members and associates of the Grape Street Crips in that two-week span. These 50 defendants and their associates, along with another 21 defendants arrested previously and facing federal and state charges, actively controlled drug trafficking and other illegal activities in various neighborhoods and public-housing complexes in Newark, New Jersey.
The charges are the result of a long-running investigation led by the Drug Enforcement Administration (DEA) and the FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. The defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judges Steven C. Mannion, Mark Falk and James B. Clark III in federal court in Newark.
“As this investigation demonstrates, the New Jersey Grape Street Crips are allegedly one of the largest and most dangerous street gangs in Newark as well as a prolific narcotics trafficking organization that floods the streets New Jersey with heroin, cocaine and crack cocaine,” said U.S. Attorney Fishman. “The narcotics activities that the gang and its associates allegedly engage in directly affect the quality of life of law-abiding citizens who reside in cities and suburbs of northern New Jersey.”
“This criminal gang used violence and intimidation to maintain their drug enterprise in Newark,” said Special Agent in Charge Carl J. Kotowski of the DEA’s New Jersey Division. “The residents of Newark can be assured that the DEA will continue to pursue those people and organizations that cause them to live in fear.”
“Gangs are the mechanism by which drugs are transmitted to the ‘bad seeds’ in our cities, and are at the root of the violent crime problem,” said Assistant Special Agent in Charge Bradley W. Cohen of the FBI’s Newark Division. “The FBI Newark Field Office is committed to making Newark and its surrounding communities, a safe place to be. The most effective way to combat this epidemic of violence is through cooperation; the efforts of all law enforcement agencies with the support and understanding of the citizens to whom we protect and serve.”
In addition to controlling drug trafficking across large swaths of Newark, the Grape Street Crips routinely engaged in acts of violence — including murder, shootings, aggravated assaults and witness intimidation. A federal grand jury has returned a second superseding indictment charging two of the defendants – Kwasi Mack also known as Welchs, 26, of Belleville, New Jersey, and Corey Batts, also known as C-Murder and Cee, 30, of Newark, two leaders of the Grape Street Crips – with numerous violent crimes in aid of racketeering, including attempted murder and conspiracy to commit murder. Batts and other gang members controlled drug trafficking and other criminal activities near the Oscar Miles public-housing complex located on Court Street. Batts is charged by complaint with plotting to murder one of the FBI special agents investigating the gang.
According to documents filed in this case and statements made in court, the Grape Street Crips are a nationwide street gang, founded in Los Angeles and operating in New Jersey. In addition to engaging in drug trafficking and other criminal activities to enrich themselves and fellow gang members, the rules governing the gang provide that members must retaliate against individuals who cooperate with law enforcement. As a result, gang members routinely engage in acts of intimidation and violence against witnesses, individuals who are believed to be cooperating with law enforcement and law enforcement officers themselves.
In March 2015, during the lawful wiretap of a cell phone used by Ahmed Singleton, 25, also known as Gangsta-Mu and Mooshie, a member of the Grape Street Crips, the DEA intercepted Singleton detailing his efforts to intimidate a witness against him. Singleton was facing trial for aggravated assault in connection with a shooting. Singleton bragged about how he had “beat trial” by intimidating the main witness against him, saying he “had the goons in the back seat so, so he [the witness] recognized all the goons…lined up in the back, like, ‘Oh he got them goons in here, like,’ word up.” As a result, Singleton explained, the witness “ain’t wanna look at nobody eyes, you heard son?” Singleton also said that the attorney for the witness had told Singleton and Singleton’s attorney that the witness would “do the right thing,” meaning refuse to testify against Singleton, so that Singleton would not “take that [expletive] shit off when he come home for telling.” Singleton went on to brag, “I walked out of court free, [expletive], who you know do that?...Who you know cause ruckus on these [expletive] streets, come home, do whatever the [expletive] they want, and still be out here son?” As a result of Singleton’s witness intimidation, the state charges against Singleton had to be dismissed.
In late 2013, a senior member of the New Jersey Grape Street Crips used a social media account to identify an individual as having previously cooperated with a murder investigation conducted by the Essex County Prosecutor’s Office. Several days after that social media post, several members of the Grape Street Crips repeatedly shot and nearly killed the individual who had been identified as having cooperated.
In late 2013, following the arrest of numerous gang members, law enforcement officials learned that members of the Grape Street Crips on the street had directed those members of the enterprise who were incarcerated at a county correctional facility to physically harm an individual who was believed to have cooperated with the law enforcement investigation.
On Oct. 2, 2014, a federal grand jury returned an 18-count second superseding indictment charging Mack and Batts with a variety of violent crimes in aid of racketeering, including attempted murder, conspiracy to commit murder, aggravated assault with a deadly weapon, conspiracy to commit aggravated assault with a deadly weapon — multiple counts of using firearms in furtherance of drug trafficking crimes and crimes of violence, conspiracy to distribute heroin and possessing firearms after previously having been convicted of felony offenses.
The attempted murder charges stem from a dispute between the leadership of the Grape Street Crips and a long-time rival of the enterprise.
Batts was charged by federal criminal complaint with plotting to kill an FBI special agent and with solicitation of a crime of violence against the special agent. Batts was attempting to smuggle images of the special agent — obtained from the pretrial discovery turned over to Batts in connection with the above charges — to another gang member in order to kill the special agent.
To protect their gang and drug territory, the Grape Street Crips operating in the Sixth Avenue and North Fifth Street area of Newark used “community guns” that were easily accessible to gang members. DEA special agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle and numerous semi-automatic handguns.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the charges. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, Jose Almonte and Barry Kamar of the District of New Jersey’s Criminal Division in Newark.
The case against Batts for plotting to murder and soliciting a crime of violence against a special agent of the FBI is being handled by Assistant U.S. Attorney Dennis Carletta and Chief Zach Intrater of the Criminal Division’s General Crimes Unit.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the federal criminal complaints and indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Seventy-One Defendants Charged in Long-Running Investigation of Grape Street Crips Street GangRead the Press Release
Charges Include Plot to Kill FBI Agent, Attempted Murders, Shootings in Aid of Racketeering, Drug Trafficking, and Witness Intimidation
NEWARK, N.J. –Seventy-one people have been charged in connection with a long-running, coordinated federal, state, and local investigation into the New Jersey set of the Grape Street Crips, a street gang allegedly responsible for violence and wide-spread drug-trafficking in the northern New Jersey, U.S. Attorney Paul J. Fishman announced today.
Today’s charges and arrests culminate three waves of arrests that started May 6, 2015, and resulted in 14 federal complaints charging 50 members and associates of the Grape Street Crips in that two-week span. These 50 defendants and their associates, along with another 21 defendants arrested previously and facing federal and state charges, actively controlled drug-trafficking and other illegal activities in various neighborhoods and public-housing complexes in Newark.
The charges are the result of a long-running investigation led by the Drug Enforcement Administration and the FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. The defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judges Steven C. Mannion, Mark Falk and James B. Clark III in Newark federal court.
“As this investigation demonstrates, the New Jersey Grape Street Crips are allegedly one of the largest and most dangerous street gangs in Newark as well as a prolific narcotics trafficking organization that floods the streets New Jersey with heroin, cocaine, and crack cocaine,” U.S. Attorney Fishman said. “The narcotics activities that the gang and its associates allegedly engage in directly affect the quality of life of law-abiding citizens who reside in cities and suburbs of northern New Jersey.”
“This criminal gang used violence and intimidation to maintain their drug enterprise in Newark,” Carl J. Kotowski, Special Agent in Charge for the Drug Enforcement Administration’s New Jersey Division said. “The residents of Newark can be assured that the DEA will continue to pursue those people and organizations that cause them to live in fear.”
“Gangs are the mechanism by which drugs are transmitted to the ‘bad seeds’ in our cities, and are at the root of the violent crime problem,” FBI Assistant Special Agent in Charge Bradley W. Cohen said. “The FBI Newark Field Office is committed to making Newark, and its surrounding communities, a safe place to be. The most effective way to combat this epidemic of violence is through cooperation; the efforts of all law enforcement agencies with the support and understanding of the citizens to whom we protect and serve.”
In addition to controlling drug-trafficking across large swaths of Newark, the Grape Street Crips routinely engaged in acts of violence — including murder, shootings, aggravated assaults, and witness intimidation. A federal grand jury has returned a second superseding indictment charging two of the defendants – Kwasi Mack, a/k/a “Welchs,” 26, of Belleville, New Jersey, and Corey Batts, a/k/a “C-Murder,” a/k/a “Cee,” 30, of Newark, two leaders of the Grape Street Crips – with numerous violent crimes in aid of racketeering, including attempted murder and conspiracy to commit murder. Batts and other gang members controlled drug-trafficking and other criminal activities near the Oscar Miles public-housing complex located on Court Street. Batts is charged by complaint with plotting to murder one of the special agents of the FBI investigating the gang.
According to documents filed in this case and statements made in court:
The Grape Street Crips are a nationwide street gang, founded in Los Angeles, California, and operating in New Jersey. In addition to engaging in drug-trafficking and other criminal activities to enrich themselves and fellow gang-members, the rules governing the gang provide that members must retaliate against individuals who cooperate with law enforcement. As a result, gang members routinely engage in acts of intimidation and violence against witnesses, individuals who are believed to be cooperating with law enforcement, and law enforcement officers themselves.
In March 2015, during the lawful wiretap of a cell phone used by Ahmed Singleton, 25, a/k/a “Gangsta-Mu,” a/k/a “Mooshie,” a member of the Grape Street Crips, the DEA intercepted Singleton detailing his efforts to intimidate a witnesses against him. Singleton was facing trial for aggravated assault in connection with a shooting. Singleton bragged about how he had “beat trial” by intimidating the main witness against him, saying he “had the goons in the back seat so, so he [the witness] recognized all the goons … lined up in the back, like, ‘Oh he got them goons in here, like,’ word up.” As a result, Singleton explained, the witness “ain’t wanna look at nobody eyes, you heard son?” Singleton also said that the attorney for the witness had told Singleton and Singleton’s attorney that the witness would “do the right thing,” meaning refuse to testify against Singleton, so that Singleton would not “take that [expletive] shit off when he come home for telling.” Singleton went on to brag: “I walked out of court free, [expletive], who you know do that? . . . . Who you know cause ruckus on these [expletive] streets, come home, do whatever the [expletive] they want, and still be out here son?” As a result of Singleton’s witness intimidation, the state charges against Singleton had to be dismissed.
In late 2013, a senior member of the New Jersey Grape Street Crips used a social media account to identify an individual as having previously cooperated with a murder investigation conducted by the Essex County Prosecutor’s Office. Several days after that social media post, several members of the Grape Street Crips repeatedly shot and nearly killed the individual who had been identified as having cooperated.
In late 2013, following the arrest of numerous gang members, law enforcement officials learned that members of the Grape Street Crips on the street had directed those members of the enterprise who were incarcerated at a county correctional facility to physically harm an individual who was believed to have cooperated with the law enforcement investigation.
On Oct. 2, 2014, a federal grand jury returned an 18-count second superseding indictment charging Mack and Batts with a variety of violent crimes in aid of racketeering, including attempted murder, conspiracy to commit murder, aggravated assault with a deadly weapon, conspiracy to commit aggravated assault with a deadly weapon — multiple counts of using firearms in furtherance of drug trafficking crimes and crimes of violence, conspiracy to distribute heroin, and possessing firearms after previously having been convicted of felony offenses.
The attempted murder charges stem from a dispute between the leadership of the Grape Street Crips and a long-time rival of the enterprise. (The attached table sets forth the charges and potential penalties.)
Batts was charged by federal criminal complaint with plotting to kill an FBI special agent and with solicitation of a crime of violence against the special agent. Batts was attempting to smuggle images of the special agent — obtained from the pretrial discovery turned over to Batts in connection with the above charges — to another gang-member in order to kill the special agent.
To protect their gang and drug territory, the Grape Street Crips operating in the 6th Avenue and North 5th Street area of Newark used “community guns” that were easily accessible to gang members. DEA special agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the charges. Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, Jose Almonte, and Barry Kamar of the Criminal Division in Newark.
The case against Batts for plotting to murder, and soliciting a crime of violence against, a special agent of the FBI is being handled by Assistant U.S. Attorney Dennis Carletta and Chief of the General Crimes Unit Zach Intrater, both of the Criminal Division.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the federal criminal complaints and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Name
Gang / Street Name(s)
Age
Residence
Date Charged
Charge(s) (Potential Term of Imprisonment)
Federal Prosecutions
Kwasi Mack
Welchs
26
Belleville
10/2/2014
- Attempted murder (2 counts) (10 years each)
- Conspiracy to commit murder (10 years)
- Assault with a deadly weapon (3 counts) (20 years each)
- Heroin conspiracy (5 year man. min up to 40 years)
- Using firearm during a crime of violence and a drug trafficking crime (2 counts) (30 year man. min. up to life)
- Felon in possession of a firearm (10 year)
Corey Batts
C-Murder, Cee
30
Newark
10/2/2014
- Solicitation to murder FBI agent (20 years)
- Retaliation against a federal official (10 years)
- Attempted murder (2 counts) (10 years each)
- Conspiracy to commit murder (10 years)
- Assault with a dangerous weapon (2 counts) (20 years each)
- Heroin conspiracy (10 year man. min. up to life)
- Heroin distribution (3 counts) (30 years each)
- Using a firearm during a crime of violence and a drug trafficking crime (2 counts) (35 year man. min. up to life)
- Felon in possession of a firearm (10 year)
Hakeem Vanderhall
Keem
31
East Orange
5/5/2015
- Running a continuing criminal enterprise (20 year man. min. up to life)
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Eric Concepcion
E-Wax, Wax, Eddie Arroyo
28
Clifton
5/5/2015
- Running a continuing criminal enterprise (20 year man. min. up to life)
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Jamar Hamilton
Gunner
26
Tottowa
5/5/2015
- Running a continuing criminal enterprise (20 year man. min. up to life)
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Tyquan Clark
Tah
28
Newark
5/5/2015
- Running a continuing criminal enterprise (20 year man. min. up to life)
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Justin Carnegie
Dew Hi
27
East Orange
5/5/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Ahmed Singleton
Gangsta-Moo
25
Newark
5/5/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Hanee Cureton
City
30
Springfield
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Khalil Stafford
Homicide, Stod
30
Newark
5/13/2015
- Distribution of heroin (up to 20 years)
Toma Williams
T-Dubs
38
Newark
10/4/2014
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Dennis Wright
Hersh
32
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Leonardo Arroyo
Leo
31
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack-cocaine (10 year man. min. up to life)
- Conspiracy to distribute 500 grams or more of cocaine (5 year man. min. up to 40 years)
Ahmad Mann
P.O., P-Easy
36
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
James S. Gutierrez
Bad News, Stevie G
24
Newark
5/5/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Sharod Caraway
Hot Rod
29
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to 40 years)
Larry D. Coleman
LA
27
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to 40 years)
Hakim S. Thomas*
Dollar
34
Newark
5/20/2015
- Distribution of heroin (20 years)
Antonio Foye*
Steel
29
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Darrell Johnson
Scrilla
26
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Ernest Valentine
Bop
30
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Trae K. Roberts*
Trae Pound
22
Irvington
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Christopher Coelho
Brazil
27
Newark
5/5/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Tauheed Satchell*
Tah
26
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Willie T. Brooks
Animal
23
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Rakeem Hankerson
Rocco
24
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Max LaRue*
Max
25
East Orange
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Jarod Ravenell*
Roddy
27
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Louis Coston
Real Rell
25
Newark
5/7/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Tamir White*
Trauma
19
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Milton Latham
Murder
40
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Gabriel Henderson*
Gabe
35
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Vincent Carter
Vince, Vin
NA
Newark
5/20/2015
- Conspiracy to distribute 100 grams or more of heroin (5 year man. min. up to life)
Raheem Powell
Nutty
32
Newark
5/20/2015
- Distribution of heroin (20 years)
Brian Mitchell
Slash
25
Newark
5/20/2015
- Distribution of heroin (20 years)
Earl Bullock
Ish
30
Newark
5/20/2015
- Distribution of heroin (20 years)
Eugene Clemons*
65
Newark
5/20/2015
- Distribution of heroin (20 years)
Hyshawn Butler
S-Dot
40
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Fatimah Johnson*
Faddy
25
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Vincent Livingston*
Double O
49
Irvington
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Samuel Cureton
Sammy
24
Irvington
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Jafforn Rock
Two Times
34
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Anthony Mosely
Stretch
20
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Freddy Brown*
Freddy
35
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Tyrone Dunson*
Rudy
28
Orange
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Oneil Concepcion
Bori
33
Newark
5/20/2015
- Conspiracy to distribute 500 grams or more of cocaine (5 year man. min. up to 40 years)
Wilfred Mendez*
Will
47
Newark
5/20/2015
- Conspiracy to distribute 500 grams or more of cocaine (5 year man. min. up to 40 years)
Monesha Johnson*
Smoove
35
Newark
5/20/2015
- Conspiracy to distribute 280 grams or more of crack cocaine (10 year man. min. up to life)
Keith Bowens*
Weefy
42
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Tarence Burks
Barack
42
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Jerome Lewis*
Pete
37
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Tequan Small
Tequan
29
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
George Bell*
Nino
37
Jersey City
5/13/2015
- Conspiracy to distribute 1 kilogram or more of heroin (10 year man. min. up to life)
Todd Carter
Oink
29
Newark
- Distribution of heroin (20 years)
Tedmond Ashe
Wild Boy
34
Newark
12/31/2013
- Felon in possession of a firearm (10 years)
Dwayne Harper
Buck
31
Newark
5/28/2014
- Smuggling contraband into federal prison (sentenced to 1 year and 1 month in federal prison)
Mookadeen Cheeseboro
28
Newark
2/20/2014
- Felon in possession of a firearm (sentenced to 5 years and 10 months in federal prison)
Bernard Anderson
BA
31
Newark
6/4/2014
- Distribution of heroin (20 years)
Jihad Coles
Half Dead
30
Newark
11/18/2014
- Conspiracy to distribute 280 grams or more of crack-cocaine (10 year man. min. up to life)
Marvin Eure
Man Man
21
Newark
2/11/2015
- Distribution of heroin (20 years);
- Felon-in-possession of a firearm (10 years)
Haneef Sanders
22
Newark
10/7/2014
- Felon in possession of a firearm (sentenced to 4 years and 2 months in federal prison)
Talib-Deen Kennedy
Tabills
21
Newark
6/20/2014
- Use of a firearm in furtherance of drug trafficking crime (sentenced to 5 years in federal prison)
Prosecution by Essex County Prosecutor’s Office
Ahmad Manley
Fresh, Moddi-G
29
Summit
3/18/2014
- Murder
Kevin Francis
Tweakset
21
Newark
5/20/2015
- Distribution of heroin
Rashan Washington
Shoota
25
Newark
4/6/2014
- Aggravated assault with deadly weapon
Timothy Wright
Tim Tim
49
Newark
5/20/2015
- Distribution of heroin
Terrence King
D-Bo
25
Newark
5/20/2015
- Distribution of heroin
Alfatier Ward
Bones
30
Newark
5/30/2014
- Distribution of heroin
Yasim Greene
Ya-Ya
23
Newark
05/20/2015
- Distribution of heroin
Olajuwon Tillery
Chance
26
Newark
05/20/2015
- Distribution of heroin
Devon Logan
Duncan
27
Newark
5/20/2015
- Distribution of heroin
*Denotes federal defendant at-large
Schuele Boys Gang Associate Pleads Guilty to G ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Demetrius Holmes, 24, of Buffalo, NY, pleaded guilty to being a felon in possession of a weapon before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that on July 23, 2014, law enforcement officers executed a search warrant at the residence of Holmes on Schuele St. in Buffalo. Officers recovered a 20 gauge shotgun. The defendant was previously convicted on a state robbery charge which prevented him from legally possessing a firearm.
Holmes was an associate of the Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo. The gang is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Holmes was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. He is the fourth to be convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Sentencing is scheduled for September 4, 2015 at 12:30 p.m. before Judge Arcara.
San Antonio Man Indicted for String of Bank Robberies Along Interstate-35Read the Press Release
Willie James Cleveland, age 34, stands charged by federal grand jury indictment for a string of bank robberies earlier this year along the Interstate 35 corridor between Austin and San Antonio announced Acting United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
A federal grand jury indictment returned yesterday charges Cleveland with nine counts of bank robbery. According to the indictment, Cleveland is responsible for the following bank robberies:
- February 12, 2015 – Woodforest National Bank – 1500 block of N. Loop 1604 East in San Antonio;
- February 18, 2015 – Woodforest National Bank – 9300 block of IH-35 South in Austin;
- February 26, 2015 – Wells Fargo Bank – 1000 block of Texas Highway 80 in San Marcos;
- March 14, 2015 – Wells Fargo Bank – 1200 block IH-35 South in New Braunfels;
- March 16, 2015 – Chase Bank – 5400 block of IH-35 North in Austin;
- March 26, 2015 and April 7, 2015 – Air Force Credit Union – 3100 block of Wurzbach in San Antonio;
- April 16, 2015 – BBVA Compass Bank – 7500 block of Wurzbach in San Antonio; and,
- April 18, 2015 – BBVA Compass Bank – 5700 block of Cameron Road in Austin.
The indictment also alleges that during the April 7th, April 16th and April 18th bank robberies, Cleveland assaulted, or put into jeopardy the life of, a bank employee while carrying out the incidents. Authorities estimate that Cleveland stole a total of more than $50,000 as a result of the bank robberies.
Cleveland has remained in federal custody since his arrest by San Antonio Police Department Robbery detectives on April 20, 2015. Upon conviction, Cleveland faces up to 25 years in federal prison for each of the three bank robberies where an assault is alleged; and, up to 20 years in federal prison for each of the remaining bank robbery counts.
The case resulted from a joint investigation by the FBI, San Antonio Police Department, Austin Police Department, San Marcos Police Department and the New Braunfels Police Department. This case is being prosecuted by Assistant United States Attorneys Michael Galdo and Grant Sparks.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Rio Rancho Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Richard A. Archuleta, 38, of Rio Rancho, N.M., pleaded guilty today to being a felon in possession of firearms and ammunition. Under the terms of the plea agreement, the United States will recommend that Archuleta be sentenced to not more than eight years in federal prison.
Archuleta was arrested in Aug. 2014, based on an indictment filed on Sept. 25, 2013, charging him with unlawfully possessing firearms and ammunition on June 3, 2013, in Bernalillo County, N.M. The indictment subsequently was superseded on Oct. 7, 2014, to include an additional charge of being a felon in possession of firearms and ammunition on Aug. 7, 2014, in Bernalillo County. According to court filings, Archuleta was prohibited from possessing firearms or ammunition because he previously had been convicted of aggravated battery, attempted kidnapping, false imprisonment, and failure to register as a sex offender.
During today’s proceedings, Archuleta pled guilty to unlawfully possessing a firearm and ammunition on June 3, 2013. In entering the guilty plea, Archuleta admitted possessing a firearm and ammunition in the console of the vehicle he was driving when he was stopped by officers on June 3, 2013. He acknowledged that as a convicted felon, he was prohibited from possessing either the firearm or the ammunition.
Archuleta has been in federal custody since his arrest and remains detained pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney David M. Walsh is prosecuting this case.
Reisterstown Company Owner Sentenced for Failing to Pay over $1.6 Million to the U.S. Postal Service for Bulk MailingsRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Michael P. Scudder, age 32, of Reisterstown, Maryland today to 18 months in prison followed by three years of supervised release for mail fraud in connection with a scheme in which he forged bulk mail forms, allowing him to mail over $1.6 million in bulk mail through the U.S. Postal Service for which postage had not been paid. Chief Judge Blake also entered an order that Scudder pay restitution to the U.S. Postal Service of $1,639,912.89.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division.
Scudder owned and operated Precision Solutions, Inc., an Owings Mills-based company engaged in bulk mail marketing. Precision Solutions brought its mail to a U.S. Postal Service mail entry facility, where the mail was weighed and counted to determine the total cost of postage. The Postal Service then debited the cost from Precision Solutions’ advance deposit account.
Precision Solutions then obtained an additional discount on postage by transporting the mail from the mail entry facility to the Postal facility which is closest to the delivery addresses. To do so, Precision Solutions was required to: bring a postage statement to the initial mail entry facility which details the type and weight of the mail, and the total number of pieces and containers in the mailing; and fill out a verification form for each mailing to be transported to the destination postal facility after verification, detailing among other things, the weight of the mail and number of containers. A copy of the verification form is kept at the initial mail entry facility, and the original is provided to Precision Solutions to present to the destination Postal facility as proof of payment. When Precision Solutions transports the mail to the destination Postal facility, it provides the mail and the original verification form to a Postal employee as proof of payment.
According to his plea agreement, Scudder executed his scheme to defraud the U.S. Postal Service by bringing only a small amount of mail to the initial mail entry facility for which a stamped and verified verification form was obtained. Scudder would then modify the stamped, verification form to reflect that a much larger amount of mail had been paid for and was ready for shipment. Scudder and his employees would use the forged verification form to present the larger amount of mail to the destination facility.
Scudder forged at least 120 verification forms, and he or his employees presented the forged forms at several Postal facilities in Maryland, Virginia, Pennsylvania and New Jersey. From January to December 2012, the alterations allowed Precision Solutions to mail a total of over 8,860 trays of mail for which postage had not been paid, resulting in a loss of revenue to the U.S. Postal Service of $1,639,912.89.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.
Press ConferenceRead the Press Release
United States Attorney Hartunian has also invited Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, United States Marshal David McNulty, IRS Supervisory Special Agent Thomas Fattorusso, Albany County District Attorney David Soares, Albany County Sheriff Craig Apple, Sr., and Saratoga County District Attorney Karen Heggen.
DATE: Wednesday, May 20, 2105
TIME: 2 PM
LOCATION: U.S. Attorney’s Office, 445 Broadway, Albany, NY 12207. 2nd Floor
Media has permission to bring cameras into the U.S. Attorney’s Office.
Press packets will be provided at the press conference. No further information will be provided at this time.
President of Florida Auction House Sentenced to 36 Months for Wildlife Smuggling ConspiracyRead the Press Release
Christopher Hayes, the President and owner of a Florida auction house was sentenced today in federal court in West Palm Beach, Florida, to 36 months in prison followed by two years of supervised release for his role in the illegal wildlife smuggling conspiracy in which he bought, sold and smuggled rhinoceros horns and objects made from rhino horn, elephant ivory and coral that were smuggled from the United States to China. Hayes’ corporation, Elite Estate Buyers Inc., located in Boynton Beach, Florida, was ordered to pay a $1.5 million criminal fine to the Lacey Act reward fund. The court also banned the corporation from trading wildlife during a five year term of probation.
The sentences were announced today by Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Director Dan Ashe for the U.S. Fish and Wildlife Service (FWS).
“Those involved in the auction business have a special responsibility to make sure that their business does not further the illegal trade in wildlife,” said Assistant Attorney General Cruden. “Each illegally-traded horn or tusk represents not an antique object but a dead animal. Wildlife trafficking entails poaching, bribery, smuggling and organized crime.”
“Illegal wildlife trade threatens the survival of many endangered species,” said U.S. Attorney Ferrer. “The Department of Justice has made it a priority to protect our natural resources. Our enforcement efforts are in place to stop illegal trade practices that endanger the conservation of nature.”
“This case highlights the part seemingly legitimate auction houses and other businesses can play in the illegal trafficking of wildlife and wildlife products – as well as the direct connection U.S. businesses and citizens have to this international crisis,” said Director Ashe. “This conviction of Elite Estate Buyers – the first of such a company and its president – demonstrates our resolve in going after all those involved in the illegal wildlife trade and should serve as a warning to similar operations, both here in the United States and abroad, that they are on our radar screen and will be brought to justice for their role in the destruction of these animals.”
According to a factual statement filed in court at the time of their guilty plea, Hayes and Elite admitted to being part of a felony conspiracy in which the company helped smugglers traffic in endangered and protected species in interstate and foreign commerce and falsified records and shipping documents related to the wildlife purchases in order to avoid the scrutiny of the FWS and U.S. Customs and Border Protection. Elite aided foreign buyers by directing them to third-party shipping stores that were willing to send the wildlife out of the country with false paperwork. Charges were brought after Hayes purchased endangered black rhinoceros horns from an undercover special agent with the U.S. Fish & Wildlife Service.
According to records filed in court, Hayes and his company sold six endangered black rhino horns. Two of the horns were sold for $80,500 to Ning Qiu, a Texas resident involved in smuggling the horns to China. Qiu has pleaded guilty to being part of a broader conspiracy to smuggle rhinoceros horns and items made from rhinoceros horns to Zhifei Li, the owner or an antique business in China and the ringleader of a criminal enterprise that smuggled 30 rhinoceros horns and numerous objects made from rhinoceros horn and elephant ivory worth more than $4.5 million from the United States to China. Qiu was sentenced to serve 25 months in prison on May 14, 2015, in Frisco, Texas, and Li was sentenced in June 2014 to a prison term of 70 months in New Jersey.
Elite and Hayes also admitted to selling items made from rhinoceros horn, elephant ivory and coral to the President of an antiques business in Canada, who they then directed to a local shipper that agreed to mail the items in Canada without required permits. That individual, Xiao Ju Guan, was sentenced to 30 months in prison on March 25, 2015 in New York.
The prosecution of Elite and Hayes is part of Operation Crash, a continuing effort by the Special Investigations Unit for the FWS’ Office of Law Enforcement in coordination with the Department of Justice to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns and elephant ivory.
The investigation is continuing and is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the U.S. Department of Justice’s Environmental Crimes Section. The prosecution of Hayes and Elite was conducted by Assistant U.S. Attorney Thomas Watts-Fitzgerald for the Southern District of Florida and Trial Attorney Gary N. Donner of the Environmental Crimes Section.
President of Florida Auction House Sentenced to 36 Months for Wildlife Smuggling ConspiracyRead the Press Release
Christopher Hayes, the President and owner of a Florida auction house was sentenced today in federal court in West Palm Beach, Florida, to 36 months in prison followed by two years of supervised release for his role in the illegal wildlife smuggling conspiracy in which he bought, sold and smuggled rhinoceros horns and objects made from rhino horn, elephant ivory and coral that were smuggled from the United States to China. Hayes’ corporation, Elite Estate Buyers Inc., located in Boynton Beach, Florida, was ordered to pay a $1.5 million criminal fine to the Lacey Act reward fund. The court also banned the corporation from trading wildlife during a five year term of probation.
The sentences were announced today by U.S. Attorney Wifredo Ferrer for the Southern District of Florida, Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, and Director Dan Ashe for the U.S. Fish and Wildlife Service (FWS).
“Illegal wildlife trade threatens the survival of many endangered species,” said U.S. Attorney Ferrer. “The Department of Justice has made it a priority to protect our natural resources. Our enforcement efforts are in place to stop illegal trade practices that endanger the conservation of nature.”
“Those involved in the auction business have a special responsibility to make sure that their business does not further the illegal trade in wildlife,” said Assistant Attorney General Cruden. “Each illegally-traded horn or tusk represents not an antique object but a dead animal. Wildlife trafficking entails poaching, bribery, smuggling and organized crime.”
“This case highlights the part seemingly legitimate auction houses and other businesses can play in the illegal trafficking of wildlife and wildlife products – as well as the direct connection U.S. businesses and citizens have to this international crisis,” said Director Ashe. “This conviction of Elite Estate Buyers – the first of such a company and its president – demonstrates our resolve in going after all those involved in the illegal wildlife trade and should serve as a warning to similar operations, both here in the United States and abroad, that they are on our radar screen and will be brought to justice for their role in the destruction of these animals.”
According to a factual statement filed in court at the time of their guilty plea, Hayes and Elite admitted to being part of a felony conspiracy in which the company helped smugglers traffic in endangered and protected species in interstate and foreign commerce and falsified records and shipping documents related to the wildlife purchases in order to avoid the scrutiny of the FWS and U.S. Customs and Border Protection. Elite aided foreign buyers by directing them to third-party shipping stores that were willing to send the wildlife out of the country with false paperwork. Charges were brought after Hayes purchased endangered black rhinoceros horns from an undercover special agent with the U.S. Fish & Wildlife Service.
According to records filed in court, Hayes and his company sold six endangered black rhino horns. Two of the horns were sold for $80,500 to Ning Qiu, a Texas resident involved in smuggling the horns to China. Qiu has pleaded guilty to being part of a broader conspiracy to smuggle rhinoceros horns and items made from rhinoceros horns to Zhifei Li, the owner or an antique business in China and the ringleader of a criminal enterprise that smuggled 30 rhinoceros horns and numerous objects made from rhinoceros horn and elephant ivory worth more than $4.5 million from the United States to China. Qiu was sentenced to serve 25 months in prison on May 14, 2015, in Frisco, Texas, and Li was sentenced in June 2014 to a prison term of 70 months in New Jersey.
Elite and Hayes also admitted to selling items made from rhinoceros horn, elephant ivory and coral to the President of an antiques business in Canada, who they then directed to a local shipper that agreed to mail the items in Canada without required permits. That individual, Xiao Ju Guan, was sentenced to 30 months in prison on March 25, 2015 in New York.
The prosecution of Elite and Hayes is part of Operation Crash, a continuing effort by the Special Investigations Unit for the FWS’ Office of Law Enforcement in coordination with the Department of Justice to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns and elephant ivory.
The investigation is continuing and is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the U.S. Department of Justice’s Environmental Crimes Section. The prosecution of Hayes and Elite was conducted by Assistant U.S. Attorney Thomas Watts-Fitzgerald for the Southern District of Florida and Trial Attorney Gary N. Donner of the Environmental Crimes Section.
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.
elite_and_hayes_sentencing_memo.pdf (240.25 KB)
elite_and_hayes_joint_factual_statement.pdf (562.32 KB)
elite_and_hayes_information.pdf (1.1 MB)
Portsmouth Man Pleads Guilty to Conspiracy to Distribute NarcoticsRead the Press Release
NORFOLK, Va. – Allen Andre Brown, 36, of Portsmouth, pled guilty today to conspiracy to distribute narcotics.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office, made the announcement after the plea was accepted by U.S. District Judge Mark S. Davis.
Brown was charged with the narcotics conspiracy in a criminal information that was filed on April 27, 2015. He faces a maximum penalty of life in prison when he is sentenced on September 2, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the statement of facts filed with the plea agreement, Brown manufactured, distributed and possessed cocaine and heroin from approximately November of 2013 to November of 2014. After an investigation into Brown’s involvement in the cocaine and heroin distribution throughout the City of Portsmouth, and a controlled purchase, a search warrant was executed at Brown’s residence. During the execution of the warrant, Brown waived his Miranda rights, admitted his involvement in the conspiracy and directed officers to the recovery of heroin, cocaine, and a firearm from his bedroom. Brown bought and sold in excess of 13 kilograms of cocaine and 478 grams of heroin, worth an estimated value of $555,850.
This case was investigated by the DEA Norfolk Resident Office with the assistance of the Portsmouth Police Department. Assistant U.S. Attorney Joseph E. DePadilla and Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-54.
###
Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud SchemeRead the Press Release
A licensed physician and former owner of a Detroit-area medical practice pleaded guilty today for his role in a $4.2 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Hicham Elhorr, M.D., 47, of Dearborn, Michigan, pleaded guilty before U.S. District Judge Nancy G. Edmunds of the Eastern District of Michigan to one count of conspiracy to commit health care fraud. A sentencing hearing is scheduled for Oct. 20, 2015.
Elhorr owned House Calls Physicians P.L.L.C., which was located in Allen Park, Michigan. According to admissions in his plea agreement, from approximately August 2008 to September 2012, Elhorr conspired with others to commit health care fraud by billing Medicare for purported in-home physician services that were not provided by licensed physicians. Elhorr admitted that he employed unlicensed individuals who held themselves out as licensed physicians and purported to provide physician home visits and other services to Medicare beneficiaries in Michigan. The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, Elhorr and the other licensed physicians had not treated the beneficiaries. The visits were then billed as if performed by the licensed physicians.
According to court documents, between approximately March 2008 and September 2012, House Calls Physicians billed Medicare more than $11.5 million for the cost of physician home services. Of that amount, Elhorr admitted that he caused the submission of approximately $4.2 million in false and fraudulent claims.
This case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. This case is being prosecuted by Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen and F. Turner Buford of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Perry County Man Charged with Federal Firearms ViolationsRead the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg returned an Indictment charging David Auman, age 37, of Liverpool, with being a convicted felon in possession of a firearm.
According to U.S. Attorney Peter Smith, Auman was also charged with trading the stolen handgun for heroin and being a user of illegal drugs while in possession of a firearm.
The matter was investigated by the Harrisburg Police Department, the Pennsylvania State Police and the Harrisburg Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney William A. Behe has been assigned to prosecute the case.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a $ 750,000 fine. Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Pennsylvania Contractor Sentenced to 33 Months in Prison for Extorting Kickbacks from Employees and Authorizing the Hit-And-Run of A Site ManagerRead the Press Release
CAMDEN, N.J. – A Pennsylvania construction company supervisor was sentenced today to 33 months in prison for extorting kickbacks from employees and giving the “go ahead” for the vehicular assault of a site manager critical of his company’s performance on a reconstruction project at the Ft. Dix military base in Burlington County, New Jersey, U.S. Attorney Paul J. Fishman announced today.
Richard Cottone, 40, of Windsor, Pennsylvania, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to obtain kickbacks from public works employees and one count of travel in interstate commerce to commit a crime of violence. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Cottone is the son-in-law of Leonard Santos, 68, of Yardley, Pennsylvania, who owned Sands Mechanical Inc. of Bristol, Pennsylvania. Between November 2009 and September 2010, Sands Mechanical was a subcontractor on the restoration and rehabilitation of the Marine Corps Reserve Training Center at Joint Base-McGuire-Dix-Lakehurst in Burlington County. Sands Mechanical provided HVAC and plumbing services. The general contractor was a company headquartered in Marriotsville, Maryland.
In order to increase the profitability of the project, Santos, with the aid of Cottone and Michael Featherston, 45, of Bridgeton, New Jersey, demanded that certain employees kickback a percentage of their weekly paychecks or face termination. In February 2010, the U.S. Department of Labor’s Wage and Hour Division (WHD) was tipped off that the Sands Mechanical employees were being forced to kickback portions of their salary and were not being paid the prevailing wage for Burlington County. Santos conceded that Sands Mechanical failed to pay the proper prevailing wage to its employees and agreed to repay $80,000 to those deprived employees. Santos cut settlement checks to those employees who were owed back wages. However, Cottone and Featherston warned those employees not to cash their settlement checks. Instead, Cottone and Featherston took the employees to a nearby check cashing business, where they endorsed their checks over to Cottone, who cashed them and returned the funds to Santos.
The general contractor’s site manager was routinely critical of the work performance of Sands Mechanical’s employees, which, at times, necessitated that work be done over. Cottone was told to physically incapacitate the site manager so that he could no longer supervise the work site. Afterwards, Cottone recruited an assailant to physically attack the site manager. On June 10, 2010, the assailant opted instead to hit the site manager with his car and called Cottone for permission to carry out the deed. After Cottone gave the “go-ahead” the assailant and two friends ran down the site manager while he was riding his bike. The victim sustained multiple serious injuries.
In addition to the prison term, Judge Rodriguez sentenced Cottone to serve three years of supervised release.
Santos pleaded guilty on April 14, 2014 and awaits sentencing. Featherston pleaded guilty on Jan. 10, 2012 and was sentenced to one year in prison on Feb. 10, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia; the Department of Labor-Wage and Hour Division, under the direction of Acting Regional Administrator Mark Watson Jr.; the Naval Criminal Investigative Service, under the direction of Special Agent in Charge Leo S. Lamont, Northeast field office; and the Air Force Office of Special Investigations, under the direction of Special Agent Seth Neville, detachment commander, Joint Base McGuire-Dix-Lakehurst.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Andrew Bruck of the U.S. Attorney’s Office Organized Crime-Gangs Unit in Newark.
Defense counsel: Richard Sparaco Esq., Cherry Hill, New Jersey
Norton man indicted for travelling to Honduras to sexually assault childrenRead the Press Release
Corey L. Bryant, 25, of Norton, Ohio, was indicted on charges of traveling in foreign commerce and engaging in illicit sexual conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that between on or about August 10, 2011 and May 21, 2012, Bryant, a citizen of the United States, traveled in foreign commerce, from the United States to Honduras, and engaged and attempted to engage in illicit sexual conduct with Minor #1, a person who was under 18 years of age. The indictment also charges that between on or about February 13, 2013 and November 26, 2014, Bryant, a citizen of the United States, traveled in foreign commerce, from the United States to Honduras, and engaged and attempted to engage in illicit sexual conduct with Minor #2, a person who was under 18 years of age. The indictment also charges that between on or about February 13, 2013 and November 26, 2014, Bryant, a citizen of the United States, traveled in foreign commerce, from the United States to Honduras, and engaged and attempted to engage in illicit sexual conduct with Minor #3, a person who was under 18 years of age.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan and Trial Attorney Amy Larson of the Criminal Division’s Child Exploitation and Obscenity Section. The case was investigated by the Cleveland Office of Department of Homeland Security, Homeland Security Investigations (HSI), with assistance from HSI Tegucigalpa and the HSI Transnational Criminal Investigative Unit.
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.
Nigerian Man Sentenced to Three Years in Prison for Role in Computer Hacking Scheme That Targeted Government EmployeesRead the Press Release
NEWARK, N.J. - A Nigerian man was sentenced today to 36 months in prison for his role in a computer hacking and identity theft scheme that defrauded vendors of nearly $1 million of office products after “phishing” e-mail login information from government employees, New Jersey U.S. Attorney Paul J. Fishman announced.
Abiodun Adejohn, a/k/a “James Williams,” a/k/a “Olawale Adeyemi,” a/k/a “Abiodun Ade John,” a/k/a “Abiodun Ade-John,” 31, of Nigeria, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of wire fraud conspiracy. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The scheme employed “phishing” attacks, which used fraudulent e-mails and websites that mimicked the legitimate e-mails and web pages of U.S. government agencies, such as the U.S. Environmental Protection Agency (EPA). Employees of those agencies visited the fake web pages and provided their e-mail account usernames and passwords.
Adejohn and his conspirators used these stolen credentials to access the employees’ e-mail accounts in order to place fraudulent orders for office products, typically printer toner cartridges, in the employees’ names from vendors who were authorized to do business with U.S. government agencies. Adejohn and his conspirators directed the vendors to ship the fraudulent orders to individuals in New Jersey and elsewhere to be repackaged and ultimately shipped to overseas locations controlled by Adejohn and his conspirators. Once the orders were received in Nigeria, Adejohn and his conspirators sold the toner cartridges to another individual on the black market for profit.
Adejohn was arrested in Arizona on Sept. 24, 2013, and has been detained since his arrest. In addition to the prison term, Judge Walls sentenced Adejohn to three years of supervised release and ordered him to pay $630,806.48 in resitution.
U.S. Attorney Fishman credited special agents of the EPA Office of Inspector General (OIG), under the direction of Special Agent in Charge Thomas Muskett; General Services Administration OIG, under the direction of Special Agent in Charge Paul Walton; Department of Commerce OIG, under the direction of Todd J. Zinser; Department of Defense, Criminal Investigative Service, under the direction of Director James Burch; and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shana W. Chen, of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark