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19 June 2015
Members of Drug Trafficking Organization Sentenced to Combined 46.5 Years in Federal PrisonRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced the final defendants tied to a large-scale drug trafficking organization that operated in the Fort Smith area were sentenced this week. The Honorable P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
U.S. Attorney Eldridge commented, “These defendants brought a significant amount of methamphetamine into the Western District of Arkansas where they sold and distributed it into our communities. The drug trafficking organization responsible has now been dismantled, and its members have been held responsible for their actions. We remain committed to working with our partners in law enforcement to identify and aggressively prosecute those who bring drugs and crime into our communities.”
“Methamphetamine has the ability to destroy entire communities,” stated DEA Assistant Special Agent in Charge, David Downing. “The victims are often children and families who live in neighborhoods where meth dealers pedal their poison. This investigation is a prime example of law enforcement working together to halt those responsible for and profiting from the spread of this vicious drug. DEA is proud to be a part of the law enforcement efforts that have helped free this area of these drug dealers who tried to take this community as their own,” said Downing.
According to court records, as early as November of 2013, agents with the Drug Enforcement Administration (DEA) learned that large quantities of methamphetamine were being distributed out of the Fort Smith area by a multi-state drug trafficking organization led by William Alexander. During the course of the investigation agents made more than ten controlled buys and executed at least five search warrants, which resulted in the seizure of approximately nine pounds of methamphetamine.
The defendants were sentenced as follows:
William Joseph Alexander, aka “Weenie”, age 33, of Fort Smith, Arkansas, was previously sentenced to two hundred and ten months in prison followed by five years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute.
Randall Jernigan, age 31, of Fort Smith, Arkansas, was previously sentenced to eighty four months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Bobby Chanthavong, age 32, of Fort Smith, Arkansas, was sentenced to thirty seven months in prison followed by five years of supervised release on one count of Possession of Methamphetamine with the Intent to Distribute.
Blake Bronson Wright, age 28, of Van Buren, Arkansas, was sentenced to twenty four months followed by three years of supervised release on one count of Distribution of Methamphetamine.
Gary Nathaniel Rogers, age 29, of Huntington, Arkansas, was sentenced to twenty one months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Gentry Alan Rainwater Sr., age 55, of Fort Smith, Arkansas, was sentenced to fifty seven months in prison followed by three years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute.
Kevin Dale Hatley, age 35, of Fort Smith, Arkansas, was sentenced to thirty three months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Joshua Wade Russell, age 30, of Jonesboro, Arkansas, was sentenced to twenty one months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Larry Dale Batt, aka “Spooky”, age 32, of Fort Smith, Arkansas, was sentenced to twenty one months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine.
Theresa Susan Thompson, age 51, of Fort Smith, Arkansas, was sentenced to fifteen months in prison followed by three years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute.
Rosa Sharon, age 50, of Fort Smith, Arkansas, was sentenced to thirty seven months in prison followed by one year of supervised release on one count of Conspiracy to Distribute Methamphetamine.
These cases were investigated by the Drug Enforcement Administration (DEA) and the Fort Smith Police Department. Assistant United States Attorney Clay Fowlkes prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Maryland Real Estate Businessman Indicted for Failing to File Income Tax ReturnsRead the Press Release
A Berwyn Heights, Maryland, resident was indicted by a grand jury sitting in Greenbelt, Maryland, on four counts of failure to file federal individual and corporate federal income tax returns, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
David J. Simard purchased and sold real estate in the Maryland and Virginia areas, according to the superseding indictment filed in the District of Maryland. Simard failed to file income tax returns for tax years 2006 and 2009, and failed to file corporate tax returns for tax years 2009 and 2010. According to the superseding indictment, Simard was the owner, operator and president of Pegasus Home Corporation. From 2009 through 2010, Pegasus sold more than 100 real estate properties.
If convicted, Simard faces a statutory maximum penalty of one year in prison and a $100,000 fine for each count.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Christopher O’Donnell and Michael Vasiliadis of the Tax Division, who are prosecuting the case.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Man found guilty of first degree murder at ADX sentenced to serve life in prisonRead the Press Release
DENVER – Silvestre Rivera, age 57, an inmate at ADX in Florence, Colorado, was sentenced today by U.S. District Court Judge Robert E. Blackburn to serve life in prison for the murder of Manuel Torrez. The life sentence was mandatory based on his First Degree Murder conviction. Rivera, and co-defendant Richard Santiago, murdered fellow inmate Torrez on April 21, 2005 while the three were exercising in the recreation area that is part of the ADX’s general population unit.
Rivera was convicted of First Degree Murder following a two week jury trial. The jury delivered the guilty verdict on April 21, 2015. During testimony at Rivera’s trial, it was determined that Rivera, Santiago and Torrez were all part of the Mexican Mafia. Torrez and Santiago arrived at ADX in 2000. Shortly after Rivera’s arrival, Torrez was killed.
Defendant Richard Santiago, age 55, also an inmate at ADX, is pending trial before Judge Blackburn, although no trial date has yet been set. Santiago is presumed innocent unless and until proven guilty.
The Rivera case was investigated by the FBI. Rivera and Santiago are being prosecuted by Assistant U.S. Attorney’s Valeria Spencer and M.J. Menendez.
Man Pleads Guilty to Defrauding FedEx of More Than $600,000Read the Press Release
Memphis, TN – A 32-year-old Canadian man who maintained a lucrative scheme that defrauded FedEx of over half-a-million dollars has pled guilty to mail fraud.
According to statements made in court, between October 2009 and August 2013, Andre Grizzle, through his Pittsburgh, Pennsylvania-based shipping company, LDM International, participated in a scheme to create fraudulent FedEx customer accounts in the names and addresses of legitimate businesses without their consent. FedEx, a private and commercial interstate carrier, then made shipments on these fraudulent accounts.
FedEx allows an individual or business to create a "shipper" account to ship items. The established account is assigned a unique account number, and the account is billed for the shipping services it’s provided. Aware of this, Grizzle utilized U-Ship, an online marketplace for shipping services, to solicit FedEx customers to LDM International. U-Ship provides shippers with the comfort of uploading a listing, indicating what type of freight they have, where it needs to be picked up and delivered, and the size and weight of the shipment. Shipping companies who utilize U-Ship can bid on the listed jobs. The shipper selects the bidder it’s most comfortable with.
Through LDM International, Grizzle placed bids for contracts on U-Ship, offering to ship merchandise at favorable rates. According to the indictment, after receiving the shipping contract, Grizzle would utilize FedEx accounts, which were opened under the name of a legitimate business or a nonexistent business, to ship the merchandise.
As the indictment states, Grizzle, or another party to the scheme, would call FedEx’s customer service center pretending to be a representative of an established business. He would then fraudulently create a new shipping account under the name of the business, and subsequently receive a new account number. Weekly or monthly invoice billing was set up for the account.
Grizzle would use these new shipping accounts to ship packages throughout the country on behalf of himself or customers who contracted with LDM International. He would incur large bills on these accounts and provide fraudulent bank account numbers and/or routing numbers to pay the shipping invoices, according to the indictment.
Unaware that the transaction was fraudulent, FedEx would then send the payment information to its financial institution, and within a few days the payments were charged back to FedEx as fraudulent, according to the indictment. Due to unknowingly providing shipping services under fraudulent accounts, the corporation suffered more than $600,000 in losses.
Today, Grizzle pled guilty to one count of mail fraud. If convicted, he faces up to 20 years in prison and up to a $250,000 fine.
Grizzle is slated to be sentenced on September 24 at 9 a.m. by Judge Sheryl H. Lipman.
This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney David Pritchard is prosecuting the case for the government.
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Lorain County man charged with conspiring to provide support to ISILRead the Press Release
Amir Said Abdul Rahman Al-Ghazi, 38, a U.S. Citizen, was arrested this morning in North Olmsted, Ohio, on charges that he attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL), possessed a firearm as a convicted felon, and trafficked marijuana.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven D. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
“According to the allegations in the complaint, Al-Ghazi attempted to provide material support to ISIL and committed other federal weapon and drug offenses,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Today’s charges are a stark reminder that the radical and dangerous philosophies espoused by groups such as ISIL can be spread in our community through computers and social media,” said U.S. Attorney Dettelbach. “Law enforcement will remain vigilant in combating violent extremism in all its forms.”
“This arrest demonstrates law enforcement’s number one priority – to keep our communities and our nation safe,” said Special Agent in Charge Anthony. “It is clear that no area is immune from the influence of ISIL and its recruitment machine. We hope this arrest will serve as a strong message to others who may consider providing support to terrorists. The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”
According to the complaint, Al-Ghazi, who changed his name from Robert McCollum earlier this year, is alleged to have pledged his support to ISIL and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIL in the Middle East and took steps to create propaganda videos for ISIL.
Al-Ghazi was also charged with distributing a schedule 1 controlled substance – marijuana. From the period of February 2014 through June 2015, Al-Ghazi sold almost two kilograms of marijuana to a confidential informant. He was also charged with possessing a firearm even though he had multiple prior felony convictions. On multiple occasions Al-Ghazi expressed his interest in purchasing an AK-47, eventually purchasing one from an undercover agent on June 19, 2015.
This case is being investigated by the FBI’s Cleveland Division’s Joint Terrorism Task Force. This case is being prosecuted by the U.S. Attorney’s Office of the Northern District of Ohio and the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Leader of Howard County Bloods Gang Sentenced to 19 Years in Prison for Racketeering Conspiracy and Gun ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Anthony Preston, a/k/a “40,” or “Tone,” age 29, of Laurel, in Howard County Maryland, today to 19 years in prison, followed by five years of supervised release, for conspiring to participate in a racketeering conspiracy, and using and carrying a firearm during and in relation to a crime of violence, in connection with his membership in the Bloods gang operating primarily out of Howard County, Maryland.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
According to his plea agreement, Preston was a member of the Bloods since at least 2007. Preston is a leader of the “Swann” set, a sub-group of the Bloods. Preston achieved the rank of “O.Y.G” or “O.G.,” (Original Young Gangster or Original Gangster), terms used for a leader in the gang with authority over other Bloods members.
Preston and his co-defendants were identified as members of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The investigation included four court ordered wiretaps on gang members’ cell phones. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.
The investigation began with an assault and robbery of an ATF confidential informant in Columbia, Maryland, on November 8, 2011. The ATF was planning a controlled purchase of firearms from co-defendant and fellow gang member Michael Johnson, a/k/a “Ace,” a/k/a “Bloody Mike” after Johnson provided via text two photos of firearms, an assault rifle and a handgun, available for purchase by the CI. Instead, Johnson directed other gang members to rob the CI. Investigation revealed that Preston had been in contact with Johnson on the day of the robbery and was photographed holding the same rifle pictured in the texts sent to the ATF CI.
Among his criminal activities as a gang member, Preston admitted that he: attended gang meetings, supported incarcerated gang members, participated in discussion regarding gang sanctions, and planned and executed retaliation against others who he felt undermined his authority within the gang. Preston also planned, participated and approved of acts of violence, and was a leader in drug trafficking to and with fellow gang members. Preston, and his Bloods associates, regularly carried firearms in connection with and in furtherance of their unlawful acts. Preston admitted to directing or participating in at least 4 assaults, including a March 18, 2012, assault over a drug debt during which Preston threatened to later return and “shoot up the place,” a February 21, 2013, attempted assault of an individual causing problems with members and associates of Preston’s set, an April 12, 2013, attempted assault of someone Preston described as a “fake Blood,” and an April 20, 2013, assault of a former gang member with a knife and mace in a convenience store. The convenience store assault was captured on video, and Preston is seen hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Citizens, including a young child, were injured by the mace sprayed by Preston during the assault. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun with him Preston would have killed the man.
Preston also admitted that he began selling drugs, including crack cocaine and oxycodone, as early as 2007. Between February and May 2013, Preston was intercepted on numerous wiretap calls with other co-defendants discussing narcotics sales. Two co-defendants each supplied Preston with at least 9000 mg of Oxycodone.
On May 8, 2013, law enforcement executed multiple search warrants and arrested approximately 20 individuals connected with the Bloods gang, including Preston. A search warrant executed at Preston’s residence recovered, among other things, a .22 caliber revolver, with one live round of ammunition, brass knuckles, various prescription pills, marijuana, $1,222 in cash, and several cellular telephones. Preston has prior convictions for armed robbery and attempted armed robbery, and, as a result, was prohibited from possessing a firearm.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Judge Russell has also sentenced co-defendants: Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, to 18 years in prison; Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland to 205 months in prison; Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, to 193 months in prison; Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., to 10 years in prison; Christopher Lloyd McGann, a/k/a “Toker,” age 23, of Columbia, Maryland, to eight years in prison; Ryan Gladden, a/k/a "Fats," age 27, of Wilkes Barre, Pennsylvania, was sentenced on January 7, 2015, to 92 months in prison; and David Jerome Robertson, age 23, of Columbia, Maryland to 81 months in prison.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.
Laurel Man Sentenced to over 8 Years in Prison for Robbery, Abduction and Sexual Assault ff ProstitutesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Ajibola Erogbogbo, age 19, of Laurel, Maryland, today to 97 months in prison, followed by three years of supervised release, for robbery.
The sentence 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; Anne Arundel County Police Chief Tim Altomare; Chief Richard McLaughlin of the Laurel Police Department; Anne Arundel County State’s Attorney Wes Adams; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, Erogbogbo was a security guard at Six Flags amusement park in Largo, Maryland, and a student at Anne Arundel Community College.
On January 9, 2014, a prostitute posted an ad for sex on the internet and Erogbogbo arranged a “date” at a hotel in Linthicum Heights, Maryland. Erogbogbo arrived wearing a vest that read “POLICE,” and had a metallic badge in one hand and a gun in the other. He told the prostitute that she was under arrest and instructed her to write her name and personal information on a yellow notepad he brought with him. Erogbogbo then handcuffed the woman, took her driver’s license and asked about her involvement in prostitution. Erogbogbo removed the handcuffs and demanded money. The woman responded that she did not have any cash. While Erogbogbo searched her belongings and the hotel room, the woman secretly sent a text message to another prostitute working in the same hotel, who knocked on the hotel door.
Erogbogbo answered the door, took out his gun and pointed it at the second prostitute. He handcuffed both women. When he couldn’t find any money, Erogbogbo ordered the second prostitute to write down her phone number and leave the hotel, leaving the initial prostitute with him.
Erogbogbo took the prostitute out to the side entrance of the hotel, telling her that she was going to jail. As they headed towards his parked vehicle, the prostitute broke free and ran back to the front desk yelling for help. The front desk attendant called 911. Erogbogbo fled in his vehicle. Anne Arundel County Police responded and recovered surveillance video footage from the hotel showing Erogbogbo arriving at the hotel, entering the lobby wearing a vest and attempting to take the prostitute away from the hotel.
On January 11, 2014, Erogbogbo again phoned the prostitute after she posted a new commercial sex ad and attempted to arrange another “date.” Based on the information provided by the prostitute, members of the Maryland Child Exploitation Task Force (MCETF) arrived in the area of the hotel and set up surveillance. Erogbogbo, however, never appeared.
A third prostitute told MCETF members that she had arranged a “date” with Erogbogbo who called her after she had posted an online prostitution ad. A fourth prostitute hid in the closet as a precaution. When Erogbogbo arrived in the hotel room, he identified himself as a police officer and placed the prostitute in handcuffs. Erogbogbo was wearing a vest that read “POLICE”, a law enforcement belt, a holstered gun on the right side and a second gun in a left-side drop holster. Erogbogbo also showed her a metallic badge. When the fourth prostitute emerged from the closet, Erogbogbo demanded that they give him their prostitution money. The prostitutes gave Erogbogbo a total of $1,400. Erogbogbo returned $600 to the fourth prostitute and took $800 from the third prostitute. Erogbogbo wrote a phone number on a piece of yellow paper, told the victims to call him if they needed future assistance from the police, removed the handcuffs and left.
On February 19, 2014, MCETF personnel met another prostitute who said that she too had been recently robbed by Erogbogbo. Erogbogbo had made a “date” with this fifth prostitute from her online post. When he arrived at her hotel room, he said that he was a police officer in the “Human Trafficking Unit.” He showed a badge, and wore a ballistic vest with a “POLICE” patch, and carried a radio that he periodically spoke into. He also carried a handcuff pouch, handcuffs and a gun in a leather holster. After asking the woman several questions regarding her involvement in prostitution, Erogbogbo said that the “only way” to avoid arrest was to have sex with him. The woman at first refused. When she would not take off her clothing, Erogbogbo threatened to put handcuffs on her. He began having sex with her, but stopped when she became unresponsive.
The next day, the prostitute posted a new online prostitution ad under the direction of MCETF. Erogbogbo contacted her to make a “date.” Although she had not told Erogbogbo her exact location, Erogbogbo soon walked into the hotel lobby en route to the “date.” When Erogbogbo encountered the Laurel City Police in the lobby, he attempted to flee. He was stopped by the police as he was attempting to re-enter his vehicle parked outside of the hotel. Erogbogbo was wearing a gold Six Flags Loss Prevention badge and a Smith and Wesson replica BB gun, holstered on his belt.
Police searched Erogbogbo’s residence and vehicle and recovered handcuffs, radios, pepper spray, badge holders and a yellow notepad that contained names, driver’s license numbers, phone numbers and addresses of women, including the prostitutes previously described.
United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County and Prince George’s County Police Departments, Laurel Police Department, Anne Arundel County and Prince George’s County State’s Attorney’s Offices and Maryland Child Exploitation Task Force for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner and James A. Crowell IV, who prosecuted the case.
Kansas City Man Charged with Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A federal bank robbery charge was filed Friday against a Kansas City man, U.S. Attorney Barry Grissom said.
A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges Darrell Hunter, 50, Kansas City, Mo., robbed United Missouri Bank at 6900 Mission Road in Prairie Village, Kan. on Dec. 26, 2014.
The complaint alleges that in the Dec. 26 robbery, Hunter entered the bank and asked for a deposit slip. He wrote on the slip, “This is a robbery I got a gun put the money in the bag.”
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 The FBI investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Justice Department seeks suggestions for who should serve panel to select Community Police CommissionRead the Press Release
On June 12, 2015, the United States District Court approved an agreement between the United States Department of Justice and the City of Cleveland to reform the way police services are delivered by the Cleveland Division of Police. One of the important goals of the agreement is to increase community input into the policies and practices of the police department.
To leverage the experience and expertise of the people of Cleveland, the agreement creates a Community Police Commission that will be responsible for: making recommendations on policies and practices of the police department, including by helping to develop important policies and trainings; working with the communities that make up Cleveland to develop the recommendations; and reporting to the community on the status of police department reforms.
The members of the commission will be chosen by a Selection Panel. The Selection Panel must include representation from each of the following groups:
(a) faith based organizations;
(b) civil rights advocates;
(c) the business/philanthropic community;
(d) organizations representing communities of color;
(e) advocacy organizations;
(f) youth or student organizations;
(g) academia; and
(h) individuals with expertise in the challenges facing people with mental illness or the homeless.
The Justice Department is seeking your suggestions into who should be on the Selection Panel. If you are interested in serving as a member of the Selection Panel, or if you would like to recommend someone to serve on the Selection Panel, please send the following information by June 26, 2015 at 5:00 pm to [email protected]:
- the name and contact information of the person you suggest
- why you believe that person should be considered
Please remember that anyone who serves on the Selection Panel will not be eligible to serve on the Community Police Commission.
Justice Department and City of Cleveland request proposals for monitor in police caseRead the Press Release
Re: Independent Monitor of the Cleveland Division of Police
Dear Applicant,
We are in receipt of the information that you submitted in response to our Request for Information for an independent monitor for the Cleveland Division of Police (“CDP”). As contemplated in that Request for Information, on May 26, 2015, the City of Cleveland and the United States of America (the “Parties”) filed a joint motion and memorandum seeking the entry of a Consent Decree. The matter, which is pending before United States District Court Judge Solomon Oliver, is United States of America v. City of Cleveland, 1:15-CV-01046-SO. Attached is a copy of the Consent Decree as entered by the Judge, which details the applicable timetables, duties, and responsibilities of the independent monitor.
We recognize that your initial submission was made without the benefit of the terms of the proposed Consent Decree. If you remain interested in serving as an independent monitor for the Cleveland Division of Police, please submit any additional information and formal proposals that you wish to have considered by the Parties who will be selecting the monitor.
This request is not part of, and shall not be governed by, any formal municipal, state, or federal procurement process. The Parties will not pay for any information or administrative costs incurred in response to the request. All costs associated with responding to the request will be solely at the interested party’s expense. Candidates considered for monitor or as a subject-matter expert on the monitor’s team must disclose all actual and potential conflicts of interest. All information submitted may become a matter of public record.
A description of the scope of work required by this project, along with the information that must be included in the application, is set out below. The exact requirements and terms of monitoring, as well as the designation of the monitor, are included in the Decree. The ultimate term of the monitorship is to be determined by the Parties and the Court, but is expected to be at least five years. Respondents should carefully consider this multi-year commitment in developing their monitoring teams and plans. As further described below, applications must include a projection of estimated costs and expenses, including yearly estimates, an estimated overall total amount, and a cost-cap above which fees and costs will not be billed.
Scope of Work
The following descriptions of the monitoring team’s expected responsibilities and duties are illustrative and non-exclusive. Generally, the monitoring team will be responsible for independently and objectively assessing and reporting on whether the requirements of the Decree are being implemented, and whether implementation is resulting in constitutional policing by and increased community trust in the Cleveland Division of Police.
The monitoring team’s duties are expected to include the following:
- Development and implementation of an organizational plan, including appropriate staffing and scheduling, for auditing and reviewing CDP’s compliance with the requirements and purpose of the Decree;
- Development of methodologies for conducting reliable audits and reviews of CDP’s compliance with the Decree;
- Recommendation and review of metrics for assessing police practices and their effects during the pendency of the Decree;
- Conducting reliable assessments to determine whether the Agreement has resulted in Constitutional policing;
- Reviewing and commenting on policies, training, and initiatives developed pursuant to the Decree;
- Conducting, analyzing, and reporting on methodologically sound surveys of community members and police officers regarding CDP police practices;
- Reviewing use of force and misconduct investigations to assess their quality, reliability, and adherence to the requirements of the Decree;
- Providing or facilitating technical assistance to CDP, including recommending strategies to improve CDP’s implementation of the Decree;
- Receipt from and provision of information to the Cleveland community, including civilian oversight entities, related to implementation of the Decree;
- Regularly communicating with the City and the United States regarding CDP’s progress implementing the Decree, any obstacles to implementation, and as otherwise necessary to facilitate effective implementation;
- Regularly producing public reports on CDP’s progress implementing the Decree and any obstacles to implementation;
- Maintaining all documents related to this project in a confidential manner as required by the Decree;
- Testifying in proceedings only as provided by the Decree;
- Making public statements only as permitted by the terms of the Decree; and
- Maintaining the highest ethical standards.
The substantive requirements of the Decree are generally grouped into the following areas:
- Community Engagement and Building Trust
- Community and Problem-Oriented Policing
- Bias-Free Policing
- Use of Force
- Crisis Intervention
- Search and Seizure
- Accountability
- Transparency and Oversight
- Officer Assistance and Support
- Supervision
- Policies
Requirements of Monitoring Team
The application to serve as or on the court-appointed monitoring team should clearly demonstrate the respondent’s qualifications to perform the requested scope of work. The application to monitor the Decree should include the following:
- Executive Summary
A brief description of how the team would complete the project.
- Personnel
- The names of the individuals and/or subcontractor consultants who would comprise the team;
- A summary of the relevant background of each team member;
- The internal organization of the team including the areas of responsibility for each member; and
- A description of all other current employment, projects, or other professional undertakings for each team member, noting the team member’s time commitments for each.
- Qualifications
Each team member’s qualifications, addressing the following areas as applicable:
- Monitoring, auditing, evaluating, or otherwise reviewing performance of organizations, including experience in monitoring settlements, consent decrees, or court orders;
- Law enforcement practices, including training, community and problem-oriented policing, complaint and use of force investigations, and constitutional policing;
- Evaluating the breadth and depth of organizational change, including the development of outcome measures;
- Development of effective quality improvement practices;
- Mediation and dispute resolution;
- Statistical and data analysis;
- Information technology;
- Data management;
- Working with government agencies, municipalities, and collective bargaining units;
- Language skills and experience working with limited English proficient persons and communities, in particular communities whose primary language is Spanish;
- Familiarity and understanding of local issues and conditions;
- Effective engagement with diverse communities;
- Creation and evaluation of meaningful civilian oversight;
- Familiarity with federal, Ohio, and local laws, including civil rights laws and policies and rules governing police practices;
- Completing projects within anticipated deadlines and budget;
- Preparing for and participating in court proceedings; and
- Report writing for a broad variety of stakeholders.
- Prior Experience and References
List current or recent (within the past 10 years) project experience for members of the team relevant to the monitoring duties and responsibilities; references for each project listed, including the name of the organization, contact person, title, address, e-mail address, and telephone number; and, if available, examples of non-confidential work product that is similar to the reports required for this project.
- Proposed Activities
Describe (in as specific detail as possible and using illustrations as necessary) the activities proposed to perform the Scope of Work. This discussion may address, but is not limited to:
- Methods of obtaining information;
- Methods of analyzing information;
- Methods of reporting information;
- Frequency of proposed activities;
- Personnel responsible for the various activities described in the Scope of Work and the number of hours anticipated to be devoted to specific aspects of the project by month or quarter, including the number of hours that would be spent on site in Cleveland;
- Coordination with the City and CDP to arrange visits, on-site records reviews, and interviews; and
- Coordination of monitoring activities, information gathering, and communications with the City, the United States, and members of the community.
- Potential Conflicts of Interest or Bias
Disclose any potential or perceived conflicts of interest involving team members, associated firms or organizations, and any employee(s) assigned to the project, or proposed subcontractor(s), including current or former employment, contracts or grants with the City, CDP, or the United States, and any involvement in the last eight years (whether paid or unpaid) with a claim or lawsuit by or against the City, CDP, or the United States or any of their officers, agents, or employees. Any close, familial, or business relationships with any of the mentioned entities, or their agents or employees, must be disclosed. Disclose whether any member of the team has been the proponent or subject of any complaint, claim, or lawsuit alleging police misconduct. To the extent a conflict or potential bias exists, explain why it does not bar the individual’s or the team’s selection, including any legal or ethical opinions or waivers upon which the team relies.
- Estimated Costs
Provide a Cost Estimate for this project based on the above Scope of Work and requirements of the Decree:
- Include a projected budget for all costs including, but not limited to: hourly billing rates, travel costs, whether travel time is billed, sub-consultant/contractor services, overhead, and supplies.
- Break down the different activities that members of the team will perform (e.g., policy review, technical assistance, training assessment, report writing, and/or incident review).
- Include a projected allocation of hourly commitments by each team member, broken down by the number of hours projected for both on-site and off-site work.
- Take into account the uncertainty of the duration of the Decree and include both onetime or fixed costs that are expected regardless of the duration of the contract, and annual costs that are expected for each year the contract is in effect.
- Include an estimate of total costs and a cost-cap above which fees and costs will not be billed.
Application Materials as a Public Record
Under the laws of the State of Ohio, all parts of the application, other than trade secret or proprietary information, may be considered a public record which, if properly requested, the City must make available to the requester for inspection and copying. Additionally, the Parties may choose to share all or some of the submissions with the public. Therefore, to protect trade secret or proprietary information, the Responder should clearly mark each portion of each page—but only that portion of each page—of its application that contains that information. The City will notify the Responder if such information in its application is requested, and will make every attempt to protect trade secret or proprietary information by citing to the applicable exemption in Ohio’s Public Records Laws. Blanket marking of the entire application as “proprietary” or “trade secret” is not acceptable and will not protect the entire application unless each part of the entire application is in fact trade secret or proprietary information. The City is not obligated to protect information that is obviously not a trade secret, obviously not proprietary, and obviously public, even if labeled as such. Upon submission of an application that contains clearly marked trade secret or proprietary information, the Responder is agreeing to defend and indemnify the City against any lawsuit or claim that the City improperly withheld a public record based upon the Responder marking it as a trade secret or proprietary information.
All formal proposals or other additional information must be submitted by close of business Wednesday, July 8, 2015, in electronic format (preferably pdf) to the Parties as follows:
For the United States Department of Justice:
Carole S. Rendon Rashida J. Ogletree
First Assistant U.S. Attorney Trial Attorney
U.S. Attorney’s Office U.S. Department of Justice
Northern District of Ohio Civil Rights Division
801 West Superior Avenue Special Litigation Section
Suite 400 950 Pennsylvania Avenue, NW
Cleveland, Ohio 44113 Washington, D.C. 20530
[email protected] [email protected]
For the City of Cleveland:
Barbara A. Langhenry
Director of Law
City of Cleveland
Department of Law
601 Lakeside Avenue. Suite 106
Cleveland, Ohio 44114
Justice Department Settles Immigration-Related Discrimination Claim Against Staffing CompanyRead the Press Release
The Justice Department reached an agreement today with Accountemps, a division of Robert Half International Inc., a company based in Menlo Park, California, resolving claims that the company engaged in citizenship status discrimination in violation of the Immigration and Nationality Act (INA).
The department’s investigation, based on a charge by a naturalized U.S. citizen, concluded that Accountemps refused to refer the charging party for a federal government contract position because, as a naturalized citizen, the charging party was not born in the United States. Under the INA, employers cannot discriminate against U.S. citizens based on their citizenship status, including refusing to hire them based on whether they were born in or outside the United States.
Under the settlement, Accountemps will continue to refer the charging party for positions for which she is qualified, pay a $2,500 civil penalty, train its staff on the anti-discrimination provision of the INA, and be subject to a one-year monitoring period.
“The INA’s anti-discrimination provision does not recognize different classes of U.S. citizens when it comes to the right to work in the United States,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We applaud Accountemps for its cooperation in addressing the concerns raised in this matter.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination in hiring, firing, recruitment and referral for a fee based on citizenship or immigration status. For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact the worker hotline above for assistance.
Justice Department Settles Immigration-Related Discrimination Claim Against Memphis Staffing CompaniesRead the Press Release
The Justice Department announced today that it reached a settlement agreement with three Memphis-area staffing agencies: Prestigious Placement; PFSWeb Inc.; and its subsidiary, Priority Fulfillment Services Inc. The agreement resolves two complaints alleging discrimination under the Immigration and Nationality Act (INA).
The Justice Department’s investigation found that the companies refused to hire two qualified, Puerto Rican-born individuals because the companies believed that they were born in a foreign country. The companies rejected the workers’ valid Puerto Rican birth certificates and demanded that the workers present naturalization certificates, even though Puerto Ricans are U.S. citizens by birth. Under the anti-discrimination provision of the INA, employers cannot discriminate in hiring or place additional documentary burdens on workers during the employment eligibility verification process based on their citizenship or perceived citizenship.
Under the settlement agreement, the companies will compensate the charging parties for lost wages; pay civil penalties to the United States; undergo training on the anti-discrimination provision of the INA; revise their employment policies and training materials; and be subject to monitoring of their employment eligibility verification practices for two years.
“Puerto Ricans are native-born U.S. citizens who have the same right to work as any other U.S. citizen,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “They should not have to face these types of discriminatory barriers, and the Justice Department is committed to ensuring equal employment opportunities.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
Justice Department Reaches Settlement Agreements to Address Unconstitutional Youth Arrest and Probation Practices in Meridian, MississippiRead the Press Release
The Justice Department announced today that, jointly with the state of Mississippi and city of Meridian, Mississippi, it has reached settlement agreements to prevent and address unconstitutional youth arrests and probation practices by the Meridian Police Department and the Mississippi Division of Youth Services, and submitted them to the court for approval.
In 2012, the department filed a lawsuit against the city of Meridian, the state of Mississippi, the Lauderdale County, Mississippi, Youth Court and the Youth Court Judges, alleging systematic violations of youths’ due process rights, in the matter of United States v. City of Meridian, et al. If approved by the U.S. District Court in Jackson, Mississippi, the proposed agreements will resolve the department’s claims against the city of Meridian and state of Mississippi. The agreements incorporate and build on reforms the city and state began during the United States’ investigation and subsequent litigation.
The department’s allegations that defendants Lauderdale County and the Lauderdale County Youth Court Judges failed to provide basic due process protections for children have not been resolved, and remain in litigation.
The agreement with the city of Meridian addresses the Meridian Police Department’s prior practice of arresting students referred by the school district without assessing whether there was sufficient probable cause to justify the arrest. The settlement agreement prohibits the city police department from arresting youth for behavior that is appropriately addressed as a school discipline issue, and requires documented probable cause determinations for any youth arrested for criminal offenses. The agreement also requires the city police department to uphold constitutional protections following a youth’s arrest, mandating Miranda warnings as soon as a youth reasonably believes he or she is not free to leave and prohibiting officers from interviewing detained youth unless a guardian or attorney is present.
The agreement with the state of Mississippi addresses the department’s claims of unconstitutional youth probation practices by the Mississippi Division of Youth Services. The settlement agreement requires state probation officers to implement measures to protect youths’ privilege against self-incrimination, including providing youths with age-appropriate explanations of their rights and the probationary process. The agreement also includes requirements for the contracts that establish the restrictions and rules that youth on probation must comply with. These contracts must be written in terms that are easily understandable to youths and that prevent arbitrary and discriminatory enforcement, and include a clear explanation of the youth’s rights. The agreement prohibits probation officers from recommending incarcerating youths for violations of their probation contracts that would not otherwise amount to detainable offenses, unless and until all other reasonable alternatives to incarceration have been exhausted.
“We commend the city of Meridian and the state of Mississippi’s Department of Human Services and Division of Youth Services for taking these important steps toward ensuring that school disciplinary issues are not inappropriately criminalized, ” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Going forward, the Department of Justice expects to work with Meridian and the state of Mississippi to ensure that children’s constitutional rights are protected in police and probation practices.”
“These agreements will help protect the children of Meridian from deprivations of educational opportunity as well as due process,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.
Each agreement will be monitored by an independent auditor who will report publicly to the federal court.
Under the agreements, the city and state will work with the United States and independent auditors to establish community input programs. These programs shall include semiannual open meetings, to be held in a publicly-accessible location, where the state and city will inform the public about progress in implementing the agreements and address community concerns related to the substantive areas covered by the agreements.
These agreements also build on reforms that the department’s Educational Opportunities Section obtained in a 2013 settlement with the Meridian Public School District to address school discipline claims in a long-standing desegregation case. To see the consent order, visit http://www.justice.gov/crt/about/edu/documents/classlist.php#race.
The department filed this complaint under the Violent Crime Control and Law Enforcement Act of 1994, which gives the department the authority to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youths in the administration of juvenile justice. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
The Justice Department will be hosting a telephonic community conference call open to members of the public on Monday, June 22, 2015, at 6:30 p.m., CDT. The purpose of this call is to provide community members with information about the investigation and complaint. To participate in the call, dial the following toll-free number: 877-675-0879. When prompted by the operator, provide your name and the pass code: 4611051.
Jury Finds Edmond Man Guilty of Seven Counts of Engaging in Illicit Sexual Conduct with Children in KenyaRead the Press Release
Oklahoma City, Oklahoma – Today, a federal jury found MATTHEW LANE DURHAM, 20, from Edmond, Oklahoma, guilty on seven counts of engaging in illicit sexual conduct with Kenyan children, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Comments from U.S. Attorney Sanford C. Coats on the verdict:
"I first want to recognize and commend the prosecution team, led by Assistant United States Attorneys Robert Don Gifford and David Petermann and Special Assistant United States Attorney Steven Creager. They and their team worked extraordinarily hard in this challenging case. The lawyers, paralegals, legal assistants, and victim witness professionals from my office, along with the exemplary Special Agents from the FBI, combined to present an excellent case to the jury. These public servants should be an example for all who investigate and prosecute criminal cases. I also want to recognize and thank the Kenyan government for their assistance and cooperation with us in seeking justice for these children."
"As for the result, this is not a verdict to celebrate. The only winner here is justice. Yes, justice was sought and obtained for the victims of this abominable crime. However, even a guilty verdict cannot bring back the innocence of the children that was taken by Mr. Durham. Their lives will never be the same, and we can all merely hope and pray that this verdict will someday give them some comfort and peace. The jury has determined that while in Kenya, Mr. Durham committed sexual acts with children. This is simply a sad situation for all involved. The bottom line is that Mr. Durham is a threat to children and it will be our position that he should be extricated from society for a significant period of time. We protect children, no matter where they are from."
According to evidence at trial, Durham was a volunteer at the Upendo Children’s Home, located in Juja, Kenya. Upendo specializes in assisting neglected Kenyan children by providing them with food, housing, clothes, school and religion. Evidence showed that between April 30, 2014, and June 17, 2014, Durham traveled from Oklahoma City to Nairobi, Kenya, and while in Kenya he engaged in illicit sexual conduct with seven children under 18 years of age.
The trial lasted for six and a half days and the jury deliberated for approximately nine hours before finding Durham guilty. Durham was found not guilty on 10 other counts. After the verdict was read, Durham was remanded to the custody of the U.S. Marshals.
At sentencing, Durham faces up to 30 years in prison for each of the guilty counts. A sentencing date will be set by the court. Reference is made to the court record for further information.
This case was the result of an investigation by the Federal Bureau of Investigation, who was assisted by the United States Embassy in Kenya, the U.S. Department of State Diplomatic Security Service, and the Kenyan National Police Directorate of Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Robert Don Gifford II, Assistant U.S. Attorney David P. Petermann, and Special Assistant U.S. Attorney Steven W. Creager.
June Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 11 indictments charging 12 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Juan Arturo Bahena Arce, age 31, of Omaha, is charged with illegal reentry into the United States on or about June 1, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ramiro Bautisa Martinez, age 37, of Omaha, is charged with illegal reentry into the United States on or about May 21, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Roberto Garcia Aquino, age 26, of Omaha, is charged with illegal reentry into the United States on or about May 21, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Rodrigo Jordan Gastelum-Flores, age 25, of San Ysidro, California, is charged with possession with intent to distribute 1 kilogram or more of a mixture containing heroin on or about June 7, 2015. The maximum possible penalty if convicted is 10 years to Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Ruben Hernandez-Arellano, age 39, of Fremont, is charged with illegal reentry into the United States on or about May 19, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Joshua J. Just, age 38, of Funk, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt of child pornography from on or about December 22, 2014, and continuing to on or about April 9, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Just with possession of child pornography on or about April 9, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the said violation, should be forfeited to the United States.
* Rochelle L. Klug, age 29, of Niobrara, Nebraska, is charged with federal program theft. The defendant was an agent of the Santee Indian Reservation Housing Authority and allegedly took cash from the Santee Housing Authority totaling more than $20,000. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Paul D. Martin, age 45, of Kearney, is charged in a thirty-six count Indictment. Counts 1–12 of the indictment charge the defendant with delivery of misbranded drugs on various dates from on or about August 23, 2013, and to on or about July 25, 2014. The maximum possible penalty if convicted is 3 years imprisonment, a $10,000, fine, a 1 year term of supervised release, and a $100 special assessment for each count. Counts 13-24 of the Indictment charge Martin with mail fraud beginning as early as September 1, 2010, and continuing to July 30, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Counts 25-36 of the Indictment charge the defendant with wire fraud beginning as early as September 1, 2010, and continuing to July 30, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Zenia Miller, age 56, of Omaha and Home Care Services, Inc., Omaha, Nebraska, are charged in a seventeen-count Indictment. Counts 1-10 of the Indictment charge the defendants with health care fraud from on or about September 1, 2012, and continuing until on or about September 30, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count for defendant Miller and a $500,000 fine and $400 special assessment for Home Care Services, Inc. Counts 11-17 of the Indictment charge Miller and Home Care Services, Inc., with wire fraud from on or about September 1, 2012, and continuing until on or about September 30, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count for defendant Miller and a $500,00 fine and $400 special assessment for each count for Home Care Services, Inc. According to the indictment the defendants allegedly billed Medicaid for services that were never rendered.
* Gerry L. Pierce, age 54, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt and distribution of child pornography from at least on or about November 30, 2013, to on or about April 7, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Pierce with possession of child pornography from at least on or about November 30, 2013 to on or about February 18, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the said violation, should be forfeited to the United States.
* Juan C. Reyes-Ramos, age 31, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine and cocaine on or about October 14, 2013. The maximum possible penalty if convicted is 10 years to Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Reyes-Ramos with possession with intent to distribute a mixture containing methamphetamine on or about May 22, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property, that constitutes or is derived, from proceeds of the violations or used to facilitate the commission of the violations should be forfeited to the United States.
Inmate housed at Florence Correctional Complex sentenced for threatening to assault and murder correctional officers and their familiesRead the Press Release
DENVER – Theron Maxton, age 60, an incarcerated inmate, was sentenced today by U.S. District Court Judge Philip A. Brimmer to serve 100 months in federal prison followed by 3 years of supervised release for retaliating against a federal officer by threats to the officer and/or the officer’s family member, U.S. Attorney Office John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. The prison sentence is to be served consecutive to his current prison sentence for threatening federal officers out of South Carolina.
On January 22, 2015, Maxton was found guilty following a three day jury trial of four counts of retaliating against a federal officer by threats to the officer and/or the officer’s family member. Maxton was an inmate at the Florence Correctional Complex, in both the United States Penitentiary and the Federal Correctional Institution at the time he made the threats.
According to the Second Superseding Indictment, obtained on May 8, 2014, and facts presented at trial, in November of 2012, the defendant threatened to assault or murder prison correctional officers, and in some cases, their families, in retaliation of the officers performing their official duties. The threats were made in letters, either to the correctional officer directly, or in one instance to a former now released cellmate. In that letter, Maxton attempted to persuade the former inmate to kill the Prison staff members and their families. In December of 2012, Maxton also said directly to an FBI special agent that if given the opportunity he would try to kill prison staff members.
This case was investigate by the Federal Bureau of Investigation.
The defendant was prosecuted by Assistant U.S. Attorneys Valeria Spencer and David Tonini.
Idabel Man Found Guilty of Murder During Perpetration of Child Abuse of Two Year OldRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAKOTA LANE WILLISTON, age 20, of Idabel, Oklahoma was convicted by a federal jury for the charge of Murder in the First Degree in Indian Country Committed During the Perpetration of Child Abuse, in violation of Title 18, United States Code, Sections 1111, 1151 and 1153, punishable by imprisonment for life and/or up to $250,000.00 fine.
After seven days of trial, the jury deliberated approximately three and one-half hours and found beyond a reasonable doubt that on about July 23, 2013, in the Eastern District of Oklahoma, in Indian country, DAKOTA LANE WILLISTON, an Indian, did unlawfully kill Payton Cockrell, a 2 year old female human being, during the perpetration of child abuse, as defined by Title 18, United States Code, Section 1111(c)(3), against Payton Cockrell.
The charges are a result of an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the McCurtain County Sheriff’s Office and the Choctaw Nation Tribal Police.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial. The defendant was remanded into the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorneys Dean Burris and Linda Epperley represented the United States.
Howell Resident Charged in Federal Child Pornography ProbeRead the Press Release
Dennis Fraser, 44, of Howell, Michigan, was arrested on charges alleging he distributed, possessed and received child pornography, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge, Marlon Miller, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations.
The affidavit supporting the criminal complaint states that ICE agents executed a search warrant on Fraser’s email account and found images of children engaging in sexually explicit conduct. A forensic search of Fraser’s personal computer revealed 211 images of child pornography and multiple link files with titles consistent with child pornography.
Fraser will appear in federal court today at 1:00 p.m. where it will be determined whether he will be detained or released pending trial. If convicted, Fraser faces not less than 15 years in prison and up to 40 years maximum.
This case is being prosecuted by Mollie O’Rourke and investigated by special agents with U.S Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Houston Woman Convicted for Sex Trafficking of a Minor in Two-Day Bench TrialRead the Press Release
HOUSTON – A bench trial concluded late yesterday ultimately convicting Luisa Vargas, 53, a legal permanent resident residing in Houston of sex trafficking of a minor and conspiracy to harbor illegal aliens, announced U.S. Attorney Kenneth Magidson.
The evidence at trial proved that in or about February 2012 until approximately May 2013, Vargas employed women and a girl less than age 18 as prostitutes in the Westview apartments used as a brothel. These women and young girl were instructed as to how much money to charge their clients for commercial sex. Approximately half of the proceeds were given to Vargas. As a general practice, the price paid was $40 for 15 minutes of sex. Vargas knew that most, if not all, of the ladies employed for the purpose of prostitution were aliens illegally within the United States.
United States District Judge Lynn N. Hughes handed down the conviction and set sentencing for Sept. 21, 2015. At that time, she faces at least 10 years and up to life in prison and a possible $250,000 maximum fine.
Co-defendants Dolores Vargas, Blasina Vargas and Ignacio Escandon pleaded guilty in March 2015 to conspiracy to engage in sex trafficking of minors and will be sentenced Oct. 19, 2015.
All will remain in custody pending their sentencing hearings.
The charges were the of an investigation by Homeland Security Investigations, FBI, Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorneys Doug Davis and Julie Searle prosecuted the case.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAROL DAVID SOSA-PALMA, age 34, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, JAROL DAVID SOSA-PALMA reentered the United States after having been previously deported on June 21, 2013. If convicted, JARONL DAVID SOSA-PALMA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Jarol David Sosa-Palma Indictment (732.89 KB)
Highland Resident Pleads Guilty to Securities Fraud in Connection with HelpMed, Inc., A Company He OwnedRead the Press Release
SALT LAKE CITY – Ryan Lynn Cook, age 35, of Highland, Utah, pleaded guilty Thursday morning in federal court to one count of securities fraud in connection with an investment scheme involving his company, HelpMed, Inc.
Cook was president and owner of HelpMed, a Utah company organized in April 2011 in Utah. He represented to potential investors that HelpMed provided medical recruiting services for medical facilities to hire temporary doctors and other medical providers.
According to a Felony Information filed Wednesday, Cook represented to potential investors that he was willing to sell a 10 percent ownership interest in his company through the issuance of company stock in exchange for $2 million. The Felony Information alleges that starting around February 2015 and continuing to May 11, 2015, Cook devised a scheme to defraud investors and took steps to execute the scheme through the use of materially false representations.
As a part of the his guilty plea Thursday, Cook admitted that he represented to investors that HelpMed earned approximately $3.8 million in revenue in January and February 2015, when in fact, HelpMed had no revenue. He represented there were more than 12,000 health care providers in HelpMed’s system ready to be connected with hospitals and clinics, when in fact, the system contained approximately 100 health care providers. He also represented there were more than 8,000 hospitals and clinics in the company’s system, when in fact, the system contained about five hospitals.
He also represented to potential investors that HelpMed’s software developer had signed a non-disclosure agreement with a senior official from the Department of Labor and was being paid $40,000 per month on the agreement, when in fact, there was no such agreement.
As a part of the plea agreement, Cook admitted sending an email in early March to potential investors containing an untrue statement of material facts with willful intent to defraud them saying, “We are continuing to grow more clients everyday so as jobs get filled new ones come in as hospital systems now have to use us to remain competitive . . . At our current rate we will hit more than 11,000 provider openings this year.”
Documents filed in court allege Cook directly solicited two investors and received approximately $2 million from about five individuals who invested in his scheme.
According to a complaint filed in the case, investors demanded Cook provide them access to HelpMed’s server. Once they obtained server access, associates of the investors determined there were not thousands of hospitals and doctors in the system, but only a few hospitals and a few dozen doctors.
According to the complaint, an investor confronted Cook about the lack of purported clients. Cook claimed the data had been moved from the server. Cook also told the investor that FBI agents had shown up at his door, that his office had been bugged and that his cell phone had been tapped by the federal government.
Cook was arrested on a federal warrant after a May 11, 2015, incident in the west desert. Cook drove to the west desert and called one of his investor victims claiming he was being followed, a person identified in the complaint as the “Software Developer” had been kidnapped by the government, and that the government had stolen his truck. Later, Cook asked the investor to come out to the west desert and take his (Cook’s) gun from him or he was going to do something drastic, according to the complaint. The investor called 911 and Cook was subsequently arrested.
As part of the plea agreement executed in court Thursday morning, federal prosecutors and Cook agreed to recommend the court impose a 24-month sentence to be followed by two years of supervised release. Cook agreed to pay restitution in the amount of $1,974,250 to the victims in the case. He also agreed to forfeit a 2015 Lexus RC; cash seized from a bank account; and real property located in Highland, Utah, in addition to a money judgment of $1,974,250. He acknowledged that the money, car, and property were proceeds of illegal conduct or helped to facilitate illegal conduct.
U.S. Magistrate Judge Dustin Pead, who presided at the change of plea hearing, set sentencing in the case for Sept. 9, 2015, at 2:30 p.m.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by the FBI.
Gulf Breeze Attorney Indicted for Bank Fraud and Money Laundering ChargesRead the Press Release
PENSACOLA, FLORIDA – Richard Michael Colbert, 54, of Pensacola Beach, was charged by a federal grand jury with 15 felony counts, including one count of conspiracy to commit bank fraud and/or mail fraud affecting a financial institution, four counts of false statement to a federally insured financial institution, one count of theft, embezzlement or misapplication by a person connected with a financial institution, and nine counts of money laundering. The indictment, unsealed today, was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that Colbert, while the manager of Beach Title Services, a subsidiary of Beach Community Bank, participated in a scheme to defraud and obtain money and/or property by fraudulent means from federally insured financial institutions. As a part of the scheme, Colbert allegedly signed and submitted false settlement statements to Bank of America and Beach Community Bank. The indictment also alleges that Colbert signed and submitted a false settlement statement to the now defunct GulfSouth Private Bank, so former builder Lawrence Wright could obtain a loan. The indictment further alleges that Colbert, while acting as an escrow agent for Beach Community Bank, embezzled and misapplied funds being held at Beach Community Bank. Thereafter, Colbert allegedly conducted a series of financial transactions thereby laundering the embezzled funds.
Colbert was arrested this morning, and his initial appearance was this afternoon at the U.S. Courthouse in Pensacola, Florida. Trial will be scheduled at Colbert’s arraignment next Wednesday, June 24.
The case is being investigated by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation-Office of Inspector General, and the Okaloosa County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Office
(850) 216-3854, [email protected]Grand Jury Returns 45-Count Rico Indictment Against Violent New Orleans GangRead the Press Release
U.S. Attorney Kenneth A. Polite announced that yesterday, an Indictment was unsealed charging members of a violent New Orleans street gang known as “the 39ers” with violating federal racketeering statutes and committing twelve homicides as well as multiple violations of federal drug and firearm laws. The defendants include: LEROY PRICE, a/k/a “Lee,” age 29; ASHTON PRICE, a/k/a “Pound,” age 24; ALONZO PETERS, a/k/a “Woo-dee,” age 25; JASMINE PERRY, a/k/a “J-Real,” a/k/a “Rell,” age 24; McCOY WALKER, a/k/a “Rat,” age 25; TERRIOUES OWNEY, a/k/a “T-Red,” age 28; EVANS LEWIS, a/k/a “Easy,” age 23; CURTIS NEVILLE, a/k/a “Pooney,” a/k/a “Poonie,” age 22; RICO JACKSON, a/k/a “Freaky,” age 33; TYRONE KNOCKUM, a/k/a “T-Bone,” age 24; SOLOMON DOYLE, a/k/a “Black,” a/k/a “Sol,” age 29; WASHINGTON McCASKILL, a/k/a “Big Wash,” age 36, and DAMIAN BARNES, a/k/a “AD,” age 27.
The 45-count indictment charges that the “39ers” gang was formed through an alliance between the “G-Strip gang,” which operated in the Ninth Ward on Gallier Street, and the “3NG” gang, which operated on or near the corner of Third Street and Galvez Street in the City of New Orleans, with the purpose of increasing their drug trafficking and ability to commit crimes of violence. Each defendant is alleged to have participated in at least one homicide.
All defendants are facing a mandatory life sentence if convicted of committing a murder in furtherance of racketeering activity, in violation of Title 18, United States Code Section 1959.
The Indictment is a product of an ongoing investigation into the drug trafficking and violent crime by this and other New Orleans gangs. It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigations’ New Orleans Gang Task Force, the New Orleans Police Department, the Bureau of Alcohol, Tobacco, and Firearms, and the Orleans Parish District Attorney’s Office.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
Assistant United States Attorneys Maurice Landrieu, Myles Ranier, and Sharan Lieberman are in charge of the prosecution.
39ers Indictment.pdf (2.31 MB)
Glen Burnie Man Sentenced to 18 Months in Prison for Stealing $4 Million from a CharityRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced William Peters, age 64, of Glen Burnie, Maryland, today to 18 months in prison followed by three years of supervised release for conspiring to commit mail and wire fraud, and conspiring to commit money laundering. Judge Motz also entered an order that Peters forfeit and pay restitution of $4 million.
The sentence 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; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea, Peters was a board member of a charity that provided financial support to Native American communities and individuals. Peters and coconspirator Brian Brown, the former president of the charity, falsely represented that if the charity funded Charity One, Inc., a nonprofit corporation Brown created and controlled to effectuate the fraud scheme, Charity One would use the funds for scholarships for American Indians. Peters and Brown, however, intended to use the funds for their own benefit.
Peters used his board membership position to cause the charity to execute a series of endowment agreements in which the charity agreed to fund Charity One with $1 million per year for five years. Charity One purportedly agreed to maintain and invest the funds for scholarships for American Indians.
In fact, however, Peters and Brown distributed the proceeds of their fraud scheme to themselves. To do so, Peters created and controlled a corporation called August First, Inc., which he used to receive and distribute to himself $950,244 of the fraud proceeds. Brown created and controlled a corporation called Aria Inc. to receive and distribute to himself $3,011,751 of the proceeds. Peters and Brown falsely characterized the funds as consulting fees on their federal income tax returns filed for 2006 to 2009 in order to conceal the source of these funds.
Peters has agreed that the actual loss to the charity is $4 million.
Brian J. Brown, age 58, of Beaverton, Oregon previously pleaded guilty to his participation in the conspiracy and was sentenced in federal court in Oregon on May 7, 2015 to 37 months in prison.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI and IRS Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Seth D. Uram for the District of Oregon and Jefferson M. Gray for the District of Maryland, who prosecuted the case.
Former Tamaulipas Governor Indicted in Money Laundering Scheme with Brother-in-LawRead the Press Release
CORPUS CHRISTI, Texas – An indictment has been officially unsealed charging Eugenio Hernandez Flores, the former governor of Tamaulipas, Mexico, with conspiring to launder monetary instruments and aiding and abetting the operation of an unlicensed money transmitting business, announced U.S. Attorney Kenneth Magidson.
Hernandez Flores, 57, was indicted along with Oscar Gomez Guerra, 43, on May 27, 2015. Following a motion filed by the United States, the court officially unsealed that indictment late yesterday.
Hernandez Flores was the governor of the Mexican State of Tamaulipas from 2005 to 2010. Gomez Guerra is married to his sister.
The U.S. government intends to seek a personal money judgment from both men in the amount of $30 million. Also included in the indictment is a notice of criminal forfeiture regarding four real properties, three of which are located in McAllen and are valued at more than $2 million. The other property is located in Austin.
If convicted of the money laundering conspiracy, the two face up to 20 years in federal prison and a fine of up to $500,000 (or twice the value of the monetary instrument or funds involved in the transactions or both). They will also face up to five years in federal prison and a $250,000 maximum fine if convicted of operating an unlicensed money transmitting business.
Both men are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the Drug Enforcement Administration (DEA) at 713-693-3000.
The investigation leading to the indictment was conducted through OCDETF in Houston, San Antonio, Brownsville, Laredo, McAllen and Corpus Christi. The DEA, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, FBI, and the U.S. Marshals Service conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Jesse Salazar and Julie K. Hampton.
Former State Employee Sentenced 13 Years for Receiving Child PornographyRead the Press Release
LONDON — A former state employee in London, Ky., who previously admitted to downloading images of child pornography from the internet while at work, has been sentenced to 13 years in federal prison.
On Thursday, U.S. District Judge Gregory Van Tatenhove sentenced 51 year-old Gordon Bowers for receiving child pornography. Under federal law, Bowers must serve at least 85 percent of his prison sentence, and following his release, he will be under the supervision of the U.S. Probation Office for 15 years. Judge Van Tatehove also ordered Bowers to pay $35,000, in restitution to multiple victims, for costs associated with psychological counseling services.
According to his plea agreement, in February of 2014, law enforcement identified several child pornography images and videos online. Authorities traced the source of the images to a computer at the London State Office Building. Agents executed a search warrant at Bowers’ office and found over 40,000 images of child pornography on his state-issued computer and other electronic storage devices. The images depicted children engaged in sexually explicit conduct.
Bowers pleaded guilty in January of this year. He worked as an environmental scientist.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky;, Jack Conway, Kentucky Attorney General;, and Gary Hartwig, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), jointly made the announcement.
The investigation was conducted by the Office of the Kentucky Attorney General and HSI. Assistant U.S. Attorney Kathleen Coffey prosecuted this case on behalf of the federal government.
Former Restaurant Owner Convicted at Trial for Arson and Insurance FraudRead the Press Release
Owner’s Son Convicted of Conspiracy and Arson
ALEXANDRIA, Va. – Lawrence Wayne Reese, 56, formerly of Ft. Belvoir, Virginia, was convicted by a jury yesterday of nine separate offenses, including arson, use of fire in commission of another federal offense, and multiple counts of fraud related to the submission of Reese’s fraudulent insurance claim. Lawrence Reese’s son, Lance Terrell Reese, 28, formerly of Ft. Belvoir, Virginia, was also convicted of arson and conspiracy to commit arson following a jury trial in which he was a co-defendant with his father.
The Reeses were indicted on February 12, 2015, for their respective roles in the February 6, 2013, arson of the “Sub Shop,” which was located on Richmond Highway in Lorton, Virginia. Lawrence Reese owned and operated the business. Through over five hundred hours of financial analysis performed by an ATF Senior Forensic Auditor, the United States proved at trial that the business was financially insolvent. Specifically, Lawrence Reese’s business reported losses of approximately $60,000 on its 2012 U.S. income tax return. Due to financial strain, Lawrence Reese recruited his son, co-defendant Lance Reese, and Horace Thompson to burn down the Sub Shop. Horace Thompson was previously tried and convicted in the Eastern District of Virginia.
The evidence presented at trial established that Lawrence Reese and Horace Thompson, through the use of the accelerant gasoline, caused an explosion followed by a fire at Lawrence Reese’s business. The fire destroyed the business and left Lawrence Reese and Horace Thompson badly burned. Following the fire, Lawrence Reese submitted a claim for approximately $200,000 to his insurance company. His submission of this claim, for an intentionally set fire, resulted in his commission of multiple counts of mail and wire fraud.
Lawrence and Lance Reese will be sentenced on September 25, 2015. Lawrence Reese faces a mandatory minimum of ten years and a maximum of twenty years of imprisonment and Lance Reese faces a mandatory minimum of five years and a maximum of ten years in prison at sentencing. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the verdict was accepted by U.S. District Judge Liam O’Grady.
This case was investigated by the Fairfax County Police Department’s Homicide Unit and the Arson Group in ATF’s Washington Field Division, with special assistance from ATF’s Financial Investigative Services Division. Assistant U.S. Attorneys Michael Rich and Zachary Terwilliger are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-32.
Former President of Law Enforcement Labor Union Pleads Guilty in Manhattan Federal Court to Defrauding Union of FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Andriana Vamvakas, the New York District Director of the U.S. Department of Labor’s Office of Labor‑Management Standards (“DOL-OLMS”), announced today that JOHN EARVIN, the former president of the United Federation of Law Enforcement Officers (“UFLEO” or the “Union”), pled guilty to an Indictment charging him with wire fraud. The UFLEO represents Special Inspectors employed by the Metropolitan Transportation Authority of New York (“MTA”). EARVIN pled guilty before U.S. District Judge Paul A. Engelmayer.
According to the allegations in the Indictment and statements made in court:
From February 2007 through April 2010, EARVIN was the Union’s president, supervising the affairs of the Union and managing the Union’s finances, including through sole control of the Union’s bank account (the “Account”). Through his presidency, EARVIN perpetrated a scheme to defraud the Union by diverting Union dues payments deposited into the Account for his own benefit, principally by making hundreds of ATM withdrawals at off-track betting facilities and other locations and making personal use of the funds. In perpetuating the scheme and preventing its discovery, EARVIN repeatedly lied to Union members about the Account by, for example, claiming that he could not provide an accounting of funds to Union members because an independent auditor was reviewing the Union’s finances. As a result of the scheme, EARVIN defrauded the Union and its members of approximately $28,012.
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EARVIN, 67, of New Rochelle, New York pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The Indictment also seeks forfeiture of crime proceeds. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
EARVIN is scheduled to be sentenced before Judge Engelmayer on October 22 at 10 a.m.
U.S. Attorney Preet Bharara thanked the DOL-OLMS for its work in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Carrie H. Cohen and Jennifer Gachiri are in charge of the prosecution.
Former Deputy Mayor of the Village of Spring Valley Sentenced to Three Years in Prison for Role in Bribery SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOSEPH DESMARET was sentenced yesterday in White Plains federal court to three years in prison for his participation in a scheme in which he accepted over $10,000 in cash bribes in exchange for his votes, as a member of the Spring Valley Board of Trustees, to sell Village land and steer a state-funded transportation contract to a real estate development company. DESMARET was sentenced before U.S. District Judge Kenneth M. Karas, before whom DESMARET pled guilty on January 29, 2014.
Manhattan U.S. Attorney Bharara stated: “Joseph Desmaret’s sentence is a reminder that every politician, no matter how high the office he holds, must act only in the interest of the public he serves.”
According to the Indictment and other documents filed in this case:
DESMARET accepted approximately $10,500 in cash bribes from an undercover FBI agent (“UC”) and a cooperating witness in exchange for his vote in favor of a sale of land owned by Spring Valley to a company he believed was controlled by the UC. In addition, DESMARET agreed to steer to the UC’s company New York State funding for road work associated with the project that he believed the UC’s company was developing.
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In addition to the prison term, DESMARET, 57, formerly of Monsey, New York, was also sentenced to two years of supervised release, and ordered to forfeit $10,500. Noramie Jasmin, DESMARET’s co-defendant and the then-mayor of Spring Valley, New York, was convicted for her role in the bribery scheme in April 2015 and is currently scheduled to be sentenced by Judge Colleen McMahon on August 7, 2015.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation and Rockland County District Attorney’s Office.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant U.S. Attorneys Douglas B. Bloom and Justin Anderson are in charge of the prosecution.
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Former CEO Pleads Guilty to Bribery and Fraud Scheme Involving Red Light Camera ContractsRead the Press Release
A former chief executive officer of a red light camera vendor pleaded guilty today to participating in an eight-year bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
Karen L. Finley, 55, of Cave Creek, Arizona, pleaded guilty before U.S. Magistrate Judge Terence P. Kemp of the Southern District of Ohio to a one-count information charging her with conspiracy to commit federal programs bribery and honest services wire and mail fraud. Finley’s sentencing hearing will be scheduled at a later date.
From December 2005 to February 2013, Finley served as CEO of a red light camera enforcement company. As part of her plea agreement, Finley admitted that, between 2005 and 2013, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus and Cincinnati through a consultant retained by the company. According to admissions made in connection with her plea, Finley and others, including another executive of the company, agreed to provide the conduit campaign contributions with the understanding that the elected public officials would assist the company in obtaining or retaining municipal contracts, including a photo red light enforcement contract with the City of Columbus. Finley also admitted she and her co-conspirators concealed the true nature and source of the payments by the consultant’s submission and the company’s payment of false invoices for “consulting services,” which funds the consultant then provided to the campaigns of the elected public officials.
The case was investigated by the FBI’s Cincinnati Field Office, Columbus Resident Agency, with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.
Finley Plea Agreement
Former CEO Pleads Guilty to Bribery and Fraud Scheme Involving Red Light Camera ContractsRead the Press Release
WASHINGTON – A former chief executive officer of a red light camera vendor pleaded guilty today to participating in an eight-year bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
Karen L. Finley, 55, of Cave Creek, Arizona, pleaded guilty before U.S. Magistrate Judge Terence P. Kemp of the Southern District of Ohio to a one-count information charging her with conspiracy to commit federal programs bribery and honest services wire and mail fraud. Finley’s sentencing hearing will be scheduled at a later date.
From December 2005 to February 2013, Finley served as CEO of a red light camera enforcement company. As part of her plea agreement, Finley admitted that, between 2005 and 2013, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus and Cincinnati through a consultant retained by the company. According to admissions made in connection with her plea, Finley and others, including another executive of the company, agreed to provide the conduit campaign contributions with the understanding that the elected public officials would assist the company in obtaining or retaining municipal contracts, including a photo red light enforcement contract with the City of Columbus. Finley also admitted she and her co-conspirators concealed the true nature and source of the payments by the consultant’s submission and the company’s payment of false invoices for “consulting services,” which funds the consultant then provided to the campaigns of the elected public officials.
The case was investigated by the FBI’s Cincinnati Field Office, Columbus Resident Agency, with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.
Former Army Contracting Official Sentenced in Pentagon Bribery SchemeRead the Press Release
Manassas man, a retired Army Sergeant Major, was working as a civilian contracting official for the Army at the Pentagon
ALEXANDRIA, Va. – James Glenn Warner, 44, of Manassas, Virginia, was sentenced today to 42 months in prison, followed by three years of supervised release, for soliciting a $500,000 bribe from executives working for a private company on a contract that Warner managed out of the Pentagon. Warner was also ordered to pay $50,000 in forfeiture.
According to court documents, in October 2014, Warner made arrangements to meet with two executives of Company A, a Virginia-based company which held a five-year contract with the Department of the Army worth up to $120 million. At the meeting, which took place at a restaurant located in the Pentagon Centre in Arlington, Virginia, Warner instructed the two executives to communicate with him by typing messages into his cell phone, which was passed around the table. Warner then passed a menu to the two executives. Inside the plastic covering for the center section of the menu was a piece of paper which outlined a bribe and extortion solicitation, suggesting that if Company A paid $500,000 it would secure a contract renewal from the Department of the Army and that alleged damaging information about Company A would be destroyed. The Company A executives declined Warner’s solicitation, reported the conduct and began cooperating with law enforcement agents. Acting at the direction of law enforcement, a Company A executive then met with Warner on five subsequent occasions, paying Warner a total of $150,000 cash bribes out of the total $500,000 solicited by Warner. On Jan. 28, 2015, at the last of these meetings, Warner was arrested while in possession of $100,000 in bribe payments.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service; and Frank Robey, Director, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the FBI’s Washington Field Office, the Defense Criminal Investigative Service, and the U.S. Army Criminal Investigative Command. Assistant U.S. Attorneys Kosta S. Stojilkovic and Mark D. Lytle are prosecuting the case.
Any person who believes they may have information regarding public corruption or fraud in the Northern Virginia area is encouraged to call the FBI's Northern Virginia Public Corruption Hotline at 703-686-6225, or the Defense Criminal Investigative Service Hotline at 800-424-9098, or the U.S. Army Criminal Investigative Command Hotline at 844-276-9243.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-77.
Federal Court Sentences Man as Armed Career CriminalRead the Press Release
DAVENPORT, IA - On June 18, 2015, Jonathon Adam Lamb, age 36, formerly of Bettendorf, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 180 months in prison, after pleading guilty to felon in possession of a firearm and being found an armed career criminal, announced United States Attorney Nicholas A. Klinefeldt. Lamb was also ordered to serve three years of supervised release following imprisonment, and to pay $100 towards the Crime Victims Fund.
On May 8, 2014, Lamb knowingly possessed a stolen Colt .45 caliber semi-automatic pistol. As a result of two prior Michigan convictions for unarmed robbery in 2000 and a Wisconsin conviction for burglary of a building in 2006, Lamb qualified as an armed career criminal under federal law. On May 8, 2014, Lamb knowingly possessed this same .45 caliber pistol and fired a shot breaking the front window of the Expo Mart Liquor Store on State Street in Bettendorf, Iowa. Later that morning, Lamb was found in possession of the firearm as he sat in a Dodge mini-van in Le Claire, Iowa and was arrested.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rock Island County Sheriff’s Department, the Bettendorf, Iowa, Police Department, and the Le Claire, Iowa, Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhoods initiative.
Federal Court Sentences Colorado Man for Conspiracy to Manufacture and Distribute MarijuanaRead the Press Release
DAVENPORT, IA - On June 18, 2015, George Peter Podes, age 44, formerly of Denver, Colorado, was sentenced by Chief United States District Court Judge John A. Jarvey to 96 months in prison, after pleading guilty to conspiracy to distribute at least 100 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Podes was also ordered to serve four years of supervised release after the imprisonment, and to pay $100 towards the Crime Victims Fund.
From approximately May 2011 to March 6, 2013, Podes agreed with several individuals, including Jared Fromknecht, Morgan Hermiston, Charles Williams, Harrison Summers, Jacob Aldrich, Michael Wood and Austin Iossi to manufacture and distribute marijuana. Podes was involved in the growing and manufacturing of multiple pounds of marijuana in Colorado that were provided to Jared Fromknecht for distribution in Iowa. Podes also acted as a middleman for marijuana transactions involving 20 to 40 pounds of marijuana at a time. In furtherance of this conspiracy, Podes obtained equipment and plant materials to manufacture multiple marijuana grows, for a total of in excess of 500 plants, at his Colorado residence. Podes admitted that he was responsible for at least 100 kilograms of marijuana and/or 100 marijuana plants.
This case was investigated by the Drug Enforcement Administration, the Iowa Department of Public Safety-Division of Narcotics Enforcement, the United States Postal Inspections Service, and the Davenport, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Federal Corrections Officer Arrested for Accepting BribesRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Robert L. Brown (32, Clermont) on a criminal complaint charging him with receipt of a bribe by a public official. If convicted, he faces up to 15 years in federal prison. Brown was arrested late yesterday, and he has been released on a $25,000 bond pending resolution of the matter. Brown is employed as a corrections officer at the Coleman Federal Correctional Institution in Sumter County, Florida.
According to court documents, beginning in January 2015, Brown allegedly used his position as a corrections officer to begin accepting illegal monetary payments to smuggle contraband to inmates. On June 18, 2015, federal agents monitored a meeting between Brown and a cooperating witness. During that meeting, Brown accepted a $2,600 bribe for illegal items that he had already smuggled into the prison. When confronted by investigators, Brown admitted that he had illegally negotiated for $7,100 in cash payments, in return for smuggling cellular telephones, prescription pills, tobacco, and other items to federal inmates.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the U.S. Department of Justice - Office of the Inspector General, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Federal Charges Filed Against Armed Man Arrested in Penn North After Baltimore RiotsRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Robert “Meech” Tucker, age 23, of Baltimore, yesterday for being a felon in possession of a gun.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Anthony W. Batts.
“Police officers save lives when they detect, investigate and arrest armed criminals, and we are thankful for their proactive work,” said U.S. Attorney Rod J. Rosenstein. “People who throw bricks and bottles at police officers should be arrested and go to jail, just as they would if they attacked any other human being.”
According to the allegations in the federal indictment and documents filed in state court, on May 4, 2015, police, who were patrolling in the Pennsylvania Avenue/North Avenue section of Baltimore, the same area impacted by street riots several days earlier, noticed that Robert “Meech” Tucker was displaying characteristics of an armed gunman. When police approached Tucker, he ran and threw a Ruger Blackhawk .357 handgun to the ground, causing it to fire. Fortunately no one was hit by the bullet. When police caught Tucker, he repeatedly screamed as if he had been injured, but Tucker was not injured. Bystanders then threw bricks and bottles at police officers.
The U.S. Attorney’s Office sponsors statewide training seminars for police officers to identify characteristics of armed gunmen and safely investigate them.
Tucker faces a maximum sentence of 10 years in prison. Tucker is presently in state custody. His initial appearance in U.S. District Court in Baltimore has not yet been scheduled.
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 commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew Hoff, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Federal Authorities Arrest Four Individuals for Possession of Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, a federal grand jury indicted four individuals in four separate indictments for possession of child pornography, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
The first indictment alleges that, in or about the month of November 2013, William Camacho-Ríos, from San Juan, did knowingly possess materials which contained an image of child pornography, as defined in Title 18, United States Code, Section 2256(8)(A). Camacho-Ríos, did knowingly possess in his Acer laptop computer and a red thumb drive, which were not manufactured in Puerto Rico and which had been transported in interstate and foreign commerce, at least 44 images and 39 videos depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
The second indictment alleges that, on or about April 15, 2015, Luis Caraballo, from Carolina, did knowingly possess in his Hewlett Packard laptop computer, which was not manufactured in Puerto Rico and which had been transported in interstate and foreign commerce, at least 15 images and 120 videos depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
The third indictment alleges that, on or about June 10, 2015, Carlos Colón-Rivera, from Toa Baja, did knowingly possess in his Western Digital hard drive, which was not manufactured in Puerto Rico and which had been transported in interstate and foreign commerce, at least 200 gigabytes of images and videos depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
The fourth indictment alleges that, on or about November 12, 2014, Donato Ruiz-Rivera, from Quebradillas, did knowingly possess in his Gateway laptop computer and his Western Digital 320 gigabyte hard drive, which were not manufactured in Puerto Rico and which had been transported in interstate and foreign commerce, at least eighty-four (84) videos depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
“People need to understand that the minors depicted in those images and videos are re-victimized every time someone downloads and/or watches them,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The U.S. Attorney’s Office for the District of Puerto Rico will continue to investigate and prosecute sexual predators who possess child pornography, in order to protect the vulnerable victims of these crimes, our children.”
“The FBI is committed in detecting, investigating and criminally processing these sexual deviants who rob our children of their innocence,” said Carlos Cases, Special Agent in Charge of the FBI, San Juan Field Office.
The cases are being prosecuted by Assistant U.S. Attorney Ginette Milanes. If convicted, the defendants face a mandatory minimum sentence of incarceration of ten years.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Eleven Defendants Charged in Nationwide Conspiracy to Manufacture and Distribute Counterfeit 5-Hour ENERGY DrinkRead the Press Release
Defendants Sold Millions of Bottles of Counterfeit 5-Hour ENERGY Drink
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 Lisa L. Malinowsk of the U.S. Food and Drug Administration’s (FDA) Los Angeles Field Office of Criminal Investigations announced today that 10 people were arrested after being charged with conspiracy to traffic in counterfeit goods, conspiracy to commit criminal copyright infringement and conspiracy to introduce misbranded food into interstate commerce. The defendants were arrested on charges stemming from the illegal distribution and counterfeit of the liquid dietary supplement 5-Hour ENERGY. One further defendant was not arrested but remains subject to an arrest warrant.
According to the indictment that was unsealed yesterday, all 11 defendants were involved in the illegal repackaging and eventual counterfeiting of 5-Hour ENERGY. The supplement is owned by a group of entities referred to in the indictment as Living Essentials, which manufactured all 5-Hour ENERGY at factories in Wabash, Indiana. Living Essentials has registered and owns all 5-Hour ENERGY trademarks and a copyright, including the “5-Hour ENERGY” name and various graphical elements of the product’s labeling and packaging. The 5-Hour ENERGY trademarks and copyrighted material are displayed on every bottle of 5-Hour ENERGY and display boxes. Living Essentials does not provide licenses to any individual or entity to manufacture 5-Hour ENERGY.
According to the indictment, defendants Joseph Shayota and Adriana Shayota, his wife, through their company Baja Exporting LLC, agreed with Living Essentials to distribute 5-Hour ENERGY in Mexico. Living Essentials manufactured the liquid 5-Hour ENERGY product and provided Spanish-language labeling and display boxes to Baja Exporting. Living Essentials additionally provided Baja a complete product package under the agreement that the 5-Hour ENERGY with Spanish-language labeling was only to be distributed by Baja in Mexico. Nevertheless, according to the indictment, rather than distributing authentic 5-Hour ENERGY with Spanish-language labeling in Mexico, the defendants attempted instead to divert the product and to sell it in the United States at a higher price. After initial efforts to sell the product failed because of the Spanish-language labeling and display boxes, the defendants replaced the labeling and display boxes with counterfeit labels and boxes designed to imitate Living Essentials’ packaging in the United States. The defendants repackaged over 350,000 bottles of 5-Hour ENERGY and sold them in the United States at a price that was 15 percent lower than what Living Essentials charged for authentic United States 5-Hour ENERGY. By December 2011, Joseph and Adriana Shayota had sold off Baja’s remaining stock of the repackaged/relabeled 5-Hour ENERGY.
Also according to the indictment, by early 2012, the defendants had moved into counterfeiting the entire 5-Hour ENERGY product. The defendants manufactured the counterfeit 5-Hour ENERGY liquid at an unsanitary facility using untrained day workers. The defendants mixed unregulated ingredients in plastic vats while attempting to mimic the real 5-Hour ENERGY products.
From December 2011 through October 2012, the defendants allegedly ordered more than seven million counterfeit label sleeves and hundreds of thousands of counterfeit display boxes and placed false lot and expiration codes on the bottles and boxes. The defendants often changed the lot and expiration codes on the counterfeit bottles and boxes to parallel the valid codes being used on the authentic product.
The indictment further alleges that the defendants travelled to Guadalajara, Mexico, and hired manufacturers for the blank plastic bottles and plastic bottle caps imprinted with the Living Essentials-trademarked “Running Man” logo. They also purchased equipment, including a steam tunnel machine, to shrink-wrap the counterfeit 5-Hour ENERGY labels on the counterfeit bottles and an inkjet printer to place false lot numbers and expiration dates on the bottoms of the counterfeit bottles.
The defendants also allegedly used code words in purchase orders and invoices for counterfeit 5-Hour ENERGY. For example, defendants Walid Jamil, Juan Romero and Leslie Roman referred to the counterfeit 5-Hour ENERGY liquid contents as “michelada,” “juice blend” and “spices.”
In addition, the indictment alleges that from May 2012 to October 2012, Midwest Wholesale Distributors, a company owned by Jamil, distributed more than four million bottles of counterfeit 5-Hour ENERGY into commercial channels throughout the United States. Midwest sold approximately 508,032 counterfeit 5-Hour ENERGY bottles to Baja Exporting and 3,521,232 counterfeit 5-Hour ENERGY bottles to the Dan-Dee Company, which was owned by defendants Kevin Attiq and Raid Attiq. A partial list of retail vendors and wholesale distributors to whom the alleged counterfeit product was sold is attached.
“The defendants’ alleged conduct demonstrates a complete disregard of the health and safety of consumers,” said U.S. Attorney Haag. “My office will continue to vigorously prosecute those individuals who place greed over the well-being of the community by distributing counterfeit dietary products.”
“The business of trafficking in counterfeit merchandise harms victims in many ways," said Special Agent in Charge Johnson. “Intellectual property crimes are anything but victimless. Intellectual property crimes can destroy jobs, suppress innovation and jeopardize the public health and safety. In this complex case, the suspects allegedly produced a product to counterfeit a popular dietary supplement that was ultimately consumed by the public. The FBI and its partners will continue to bring these types of criminals to justice.”
“U.S. consumers rely on FDA oversight of foods to ensure that they are safe and wholesome,” said Special Agent in Charge Malinowski. “Criminals who produce and sell counterfeit and misbranded dietary supplements put the public health at risk by utilizing unknown and unregulated ingredients that could put the consumer in danger of serious illness or death. This alleged counterfeit operation was especially egregious as the investigation revealed this product was sold, distributed and placed on the shelves of numerous retailers throughout the United States. We will continue to investigate violators of our laws and work to bring them to justice.”
The 11 indicted defendants, all of whom are charged with conspiracy to traffic in counterfeit goods, conspiracy to commit criminal copyright infringement and conspiracy to introduce misbranded food into interstate commerce, include:
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Joseph Shayota, 63, of El Cajon, California. Shayota was arrested yesterday at his residence. He made an initial appearance before the Honorable U.S. Magistrate Judge Nita L. Stormes in the Southern District of California, who ordered him released on $250,000 bond and to surrender his passport. Shayota’s next scheduled court appearance will be on July 9, 2015, at 1:30 p.m., before the Honorable U.S. Magistrate Judge Howard R. Lloyd to schedule further proceedings in U.S. District Court in San Jose, California.
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Adriana Shayota, 44, also of El Cajon. Shayota was arrested yesterday at her residence. She made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who ordered her released on $100,000 bond and to surrender her passport. Shayota’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Justin Shayota, 32, of Troy, Michigan. Shayota was arrested yesterday at his residence. He made an initial appearance before the Honorable U.S. Magistrate Judge David T. Grand in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and to surrender his passport by noon tomorrow. Shayota’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Walid Jamil, aka Wally Jamil, 65, also of Troy. Jamil self-surrendered to the FBI yesterday. He made an initial appearance before U.S. Magistrate Judge Grand in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and to surrender his passport by noon tomorrow. Jamil’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before the U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Raid Jamil, aka Brian Jamil, 46, of West Bloomfield, Michigan. Jamil surrendered to the FBI yesterday. He made an initial appearance before U.S. Magistrate Judge Grand in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and to surrender his passport by noon tomorrow. Jamil’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Kevin Attiq, 51, of El Cajon. Attiq was arrested yesterday at his residence. He made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who released him on $100,000 bond and to surrender his passport. Attiq’s next scheduled court appearance is on July 9, 2015, before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Fadi Attiq, 57, of El Cajon. Attiq was arrested yesterday at his residence. He made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who released him on $100,000 bond and to surrender his passport. Attiq’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Leslie Roman, 61, of Rancho Cucamonga, California. Roman was arrested yesterday at his residence. He made an initial appearance before the Honorable U.S. Magistrate Judge David T. Bristow in the Central District of California, who released him on $50,000 bond after he surrendered his passport. Roman’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Mario Ramirez, 55, of San Diego.Ramirez was arrested yesterday at his residence. He made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who released him on $100,000 cash via cashier’s check and ordered him to surrender his passport. Ramirez’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Camilo Ramirez, 30, of San Diego. Ramirez was arrested yesterday at his residence. He made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who released him on $100,000 cash via cashier’s check and ordered him to surrender his passport. Ramirez’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Juan Romero, 68, of Upland, California. An arrest warrant remains outstanding for Romero.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum statutory penalties:
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For each count of conspiracy to traffic in counterfeit goods: 10 years imprisonment, a $2 million fine, three years of supervised release and a $100 special assessment.
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For each count of conspiracy to commit criminal copyright infringement: five years imprisonment, a $250,000 fine, three years of supervised release and a $100 special assessment.
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For each count of conspiracy to introduce misbranded food into interstate commerce: five years imprisonment, a $250,000 fine, three years of supervised release and a $100 special assessment.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.
Assistant U.S. Attorneys Matt Parrella and Susan Knight of the Northern District of California are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI and the FDA’s Office of Criminal Investigations.
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Eleven Defendants Charged in Nationwide Conspiracy to Manufacture and Distribute Counterfeit 5-Hour ENERGY DrinkRead the Press Release
SAN JOSE – United States Attorney Melinda Haag, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office, and Lisa L. Malinowski, Special Agent in Charge, FDA Los Angeles Field Office of Criminal Investigations, announced that ten people were arrested after being charged with conspiracy to traffic in counterfeit goods, conspiracy to commit criminal copyright infringement, and conspiracy to introduce misbranded food into interstate commerce. The defendants were arrested on charges stemming from the illegal distribution and counterfeiting of the liquid dietary supplement 5-Hour ENERGY. One further defendant was not arrested, but remains subject to an arrest warrant.
According to the indictment that was unsealed yesterday, all 11 defendants were involved in the illegal repackaging and eventual counterfeiting of 5-Hour ENERGY. The supplement is owned by a group of entities referred to in the indictment as Living Essentials, which manufactured all 5-Hour ENERGY at factories in Wabash, Indiana. Living Essentials has registered and owns all 5-Hour ENERGY trademarks and a copyright, including the “5-Hour ENERGY” name and various graphical elements of the product’s labeling and packaging. The 5-Hour ENERGY trademarks and copyrighted material are displayed on every bottle of 5-Hour ENERGY and display boxes. Living Essentials does not provide licenses to any individual or entity to manufacture 5-Hour ENERGY.
According to the indictment, defendant Joseph Shayota and his wife Adriana Shayota, through their company Baja Exporting, LLC, agreed with Living Essentials to distribute 5-Hour ENERGY in Mexico. Living Essentials manufactured the liquid 5-Hour ENERGY product and provided Spanish-language labeling and display boxes to Baja Exporting. In addition, Living Essentials provided Baja a complete product package under the agreement that the 5-Hour ENERGY with Spanish-language labeling was only to be distributed by Baja in Mexico. Nevertheless, according to the indictment, rather than distributing authentic 5-Hour ENERGY with Spanish-language labeling in Mexico, the defendants attempted instead to divert the product and to sell it in the United States at a higher price. After initial efforts to sell the product failed because of the Spanish-language labeling and display boxes, the defendants replaced the labeling and display boxes with counterfeit labels and boxes designed to imitate Living Essentials’ packaging in the United States. The defendants repackaged over 350,000 bottles of 5-Hour ENERGY and sold them in the United States at a price that was 15 percent lower than what Living Essentials charged for authentic United States 5-Hour ENERGY. By December 2011, Joseph and Adriana Shayota had sold off Baja’s remaining stock of the repackaged/relabeled 5-Hour ENERGY.
Also according to the indictment, by early 2012, the defendants moved into counterfeiting the entire 5-Hour ENERGY product. The defendants manufactured the counterfeit 5-Hour ENERGY liquid at an unsanitary facility using untrained day workers. The defendants mixed unregulated ingredients in plastic vats while attempting to mimic the real 5-Hour ENERGY products.
From December 2011 through October 2012, the defendants allegedly ordered more than seven million counterfeit label sleeves and hundreds of thousands of counterfeit display boxes, and placed false lot and expiration codes on the bottles and boxes. The defendants often changed the lot and expiration codes on the counterfeit bottles and boxes to parallel the valid codes being used on the authentic product.
The indictment further alleges that the defendants travelled to Guadalajara, Mexico and hired manufacturers for the blank plastic bottles and plastic bottle caps imprinted with the trademarked “Running Man” logo. They also purchased equipment, including a steam tunnel machine, to shrink-wrap the counterfeit 5-Hour ENERGY labels on the counterfeit bottles, and an inkjet printer to place false lot numbers and expiration dates on the bottoms of the counterfeit bottles.
The defendants also allegedly used code words in purchase orders and invoices for counterfeit 5-Hour ENERGY. For example, defendants Walid Jamil, Juan Romero, and Leslie Roman referred to the counterfeit 5-Hour ENERGY liquid contents as “michelada,” “juice blend,” and “spices.”
In addition, the indictment alleges that from May 2012 to October 2012, Midwest Wholesale Distributors, a company owned by defendant Walid Jamil, distributed more than four million bottles of counterfeit 5-Hour ENERGY into commercial channels throughout the United States. Midwest sold approximately 508,032 counterfeit 5-Hour ENERGY bottles to Baja Exporting and 3,521,232 counterfeit 5-Hour ENERGY bottles to the Dan-Dee Company, which was owned by defendants Kevin Attiq and Raid Attiq. A partial list of retail vendors and wholesale distributors to whom the alleged counterfeit product was sold is attached.
United States Attorney Melinda Haag stated, “The defendants’ alleged conduct demonstrates a complete disregard of the health and safety of consumers. My office will continue to vigorously prosecute those individuals who place greed over the well-being of the community by distributing counterfeit dietary products.”
"The business of trafficking in counterfeit merchandise harms victims in many ways," said Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office. "Intellectual property crimes are anything but victimless. Intellectual property crimes can destroy jobs, suppress innovation, and jeopardize the public health and safety. In this complex case, the suspects allegedly produced a product to counterfeit a popular dietary supplement that was ultimately consumed by the public. The FBI and its partners will continue to bring these types of criminals to Justice."
“U.S. consumers rely on FDA oversight of foods to ensure that they are safe and wholesome. Criminals who produce and sell counterfeit and misbranded dietary supplements put the public health at risk by utilizing unknown and unregulated ingredients that could put the consumer in danger of serious illness or death. This alleged counterfeit operation was especially egregious as the investigation revealed this product was sold, distributed, and placed on the shelves of numerous retailers throughout the United States,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to investigate violators of our laws and work to bring them to justice.”
The eleven indicted defendants - all of whom are charged with conspiracy to traffic in counterfeit goods, in violation of 18 U.S.C. § 2320(a); conspiracy to commit criminal copyright infringement, in violation of 18 U.S.C. § 371; and conspiracy to introduce misbranded food into interstate commerce, in violation of 18 U.S.C. § 371 - include:
- Joseph Shayota, 63, of El Cajon, California. Shayota was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who ordered him released on $250,000 bond and ordered to surrender his passport. Shayota’s next scheduled court appearance will be on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Adriana Shayota, 44, of El Cajon, California. Shayota was arrested yesterday at her residence. She made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who ordered her released on $100,000 bond and ordered to surrender her passport. Shayota’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Justin Shayota, 32, of Troy, Michigan. Shayota was arrested yesterday at his residence. He made an initial appearance before the Honorable David T. Grand, United States Magistrate Judge, Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and ordered to surrender his passport by noon tomorrow. Shayota’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Walid Jamil, a/k/a Wally Jamil, 65, of Troy, Michigan. Jamil self-surrendered to the FBI yesterday. He made an initial appearance before the Honorable David R. Grand, United States Magistrate Judge in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and ordered to surrender his passport by noon tomorrow. Jamil’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Raid Jamil, a/k/a Brian Jamil, 46, of West Bloomfield, Michigan. Jamil surrendered to the FBI yesterday. He made an initial appearance before the Honorable David R. Grand, United States Magistrate Judge in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and ordered to surrender his passport by noon tomorrow. Jamil’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Kevin Attiq, 51, of El Cajon, California. Attiq was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who released him on $100,000 bond and ordered to surrender his passport. Kevin Attiq’s next scheduled court appearance is on July 9, 2015 before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Fadi Attiq, 57, of El Cajon, California. Attiq was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who released him on $100,000 bond and ordered to surrender his passport. Fadi Attiq’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Leslie Roman, 61, of Rancho Cucamonga, California. Roman was arrested yesterday at his residence. He made an initial appearance before the Honorable David T. Bristow, United States Magistrate Judge in the Central District of California, who released him on $50,000 bond after he surrendered his passport. Roman’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Mario Ramirez, 55, of San Diego, California. Ramirez was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Central District of California, who released him on $100,000 cash via cashier’s check and ordered to surrender his passport. Ramirez’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Camilo Ramirez, 30, of San Diego, California. Ramirez was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who released him on $100,000 cash via cashier’s check and ordered to surrender his passport. Ramirez’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Juan Romero, 68, of Upland, California. An arrest warrant remains outstanding for Romero.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum statutory penalties:
- Count One: Conspiracy to Traffic in Counterfeit Goods, in violation of 18 U.S.C. § 2320(a): 10 years imprisonment, $2,000,000 fine, 3 years supervised release, $100 special assessment.
- Count Two: Conspiracy to Commit Criminal Copyright Infringement, in violation of 18 U.S.C. § 371: 5 years imprisonment, $250,000 fine, 3 years supervised release, $100 special assessment.
- Count Three: Conspiracy to Introduce Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371: 5 years imprisonment, $250,000 fine, 3 years supervised release, $100 special assessment.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Matt Parrella and Susan Knight are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Food and Drug Administration Office of Criminal Investigations.
Eleven Charged in White Plains Federal Court with Cocaine Trafficking in Orange, Rockland, and Bronx CountiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge, New York Division of the Drug Enforcement Administration (“DEA”), and Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), announced the unsealing yesterday of an indictment and two complaints charging a total of 11 defendants with allegedly engaging in the distribution of cocaine in and around Orange, Rockland, and Bronx Counties, New York. Ten defendants were taken into custody on June 17 and June 18, 2015, and were presented in White Plains federal court on June 18 and June 19, 2015, before U.S. Magistrate Judge Paul E. Davison.
U.S. Attorney Preet Bharara stated: “These arrests strike at the heart of an entrenched group of alleged drug dealers. Their alleged sales of narcotics in public locations affected communities in Orange County and surrounding areas. We thank the Drug Enforcement Administration, the New York State Police, and our many local law enforcement partners for their extraordinary efforts on this case.”
DEA Special Agent in Charge James J. Hunt stated: “Wherever this alleged drug trafficking crew went, drug addiction allegedly followed. By joining forces and using investigative resources, law enforcement has arrested those responsible for selling cocaine throughout Orange County and our neighboring towns.”
NYSP Superintendent Joseph A. D’Amico said: “The partnership between the Drug Enforcement Administration, New York State Police and U.S. Attorney's Office has resulted in the arrests of these allegedly dangerous individuals. For more than a decade, these people allegedly sold large quantities of cocaine in our New York communities – a crime that we won't tolerate. The dedication of these law enforcement agencies and our local partners, the City of Middletown and Town of Warwick Police Departments, resulted in these charges and the seizure of cocaine, crack cocaine, heroin, and cash. I applaud our partners for the hard work that brought this operation, and its supply of drugs, to an end.”
As alleged in the Indictment and the Complaint unsealed today in White Plains federal court[1]:
United States v. Cheyenne Simpson, et al., 15 Cr. 370
Between 2009 and 2015, CHEYENNE SIMPSON, MICHAEL BRANDS, LASHANTA MENDOZA, and EDWIN DELMORAL conspired to sell cocaine in Middletown, Goshen, and elsewhere. During the course of the conspiracy, law enforcement officers observed the defendants selling cocaine to multiple buyers, some of whom were confidential informants working with the police. Law enforcement officers using court-authorized wiretaps also recorded numerous conversations in which the defendants discussed trafficking in cocaine.
Similarly, between 2013 and 2015, EDWIN DELMORAL, PEDRO BARBOSA, JAMES CHRISTIANO, GENNARO COSTAGLIOLA, JASON KEATING, and ROSA BARBOSA conspired to sell cocaine in Middletown and elsewhere. During the course of the conspiracy, law enforcement also observed these defendants selling cocaine to multiple buyers, some of whom were confidential informants working with the police, and used court-authorized wiretaps to record numerous conversations in which these defendants discussed trafficking in cocaine.
United States v. Eliseo Llanos, 15 Mag. 2086
Between 2012 and 2015, ELISEO LLANOS sold over five kilograms of cocaine operating out of Mountaindale, New York. LLANOS sold as much as a quarter kilogram to a single buyer every two to four weeks. Law enforcement officers using court-authorized wiretaps also recorded conversations in which Llanos agreed to supply another cocaine trafficker who supplied street-level cocaine dealers.
United States v. Thomas Garcia, 15 Mag. ___
Since in or about 2001, THOMAS GARCIA sold over five kilograms of cocaine in Bronx and Rockland Counties. On or about June 18, 2015, DEA agents and NYSP investigators seized approximately 1.5 kilograms of cocaine, over one kilogram of heroin, and a loaded firearm from GARCIA’s car and apartment in the Bronx.
The defendants in United States v. Simpson, et al. face maximum terms of life in prison and mandatory minimum terms of 10 years in prison. The defendant in United States v. Llanos also faces a maximum term of life in prison and a mandatory minimum term of 10 years in prison. The defendant in United States v. Garcia faces a maximum term of life in prison and a mandatory minimum term of 15 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
A chart containing the names of the defendants who were arrested today, and the charges and maximum penalties they face, is attached.
Mr. Bharara praised the outstanding investigative work of the Drug Enforcement Administration, the New York State Police, the City of Middletown Police Department, the New Jersey State Police, and the Town of Warwick Police Department.
This investigation was conducted by the DEA’s Westchester Task Force, the New York State Police CNET Campbell Hall, and the U.S. Marshals Service. Assistance was provided by Town of Warwick Police Department, the Vernon Police Department, the New Jersey State Police, Sussex County Drug Trask Force, City of Middletown Police Department, Sullivan County District Attorney's Office, and Fallsburgh Police Department. The DEA’s Westchester Resident Office comprises agents and officers of the DEA, Westchester Police Department, New Rochelle Police Department, Yonkers Police Department, Mount Vernon Police Department, White Plains Police Department and Port Chester Police Department..
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jessica K. Feinstein and Hagan Scotten are in charge of the prosecution.
The charges contained in the Indictment and the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.)
CHEYENNE SIMPSON MICHAEL BRANDS
LASHANTA MENDOZA a/k/a “LA,” a/k/a “Lynn,” EDWIN DELMORAL
PEDRO BARBOSA a/k/a “Pete,” a/k/a “P,”
JAMES CHRISTIANO, a/k/a “Jimmy,”
GENNARO COSTAGLIOLA
a/k/a “Gerry,” a/k/a “Big Nose,”
JASON KEATING
ROSA BARBOSA
Life in prison
Mandatory minimum: 10 years in prison
Distribution and possession with intent to distribute over five kilograms of cocaine
ELISEO LLANOS, a/k/a “Eli,”
THOMAS GARCIA, a/k/a “Biggz”
Life in prison
Mandatory minimum: 10 years in prison
Distribution and possession with intent to distribute over one kilogram of heroin
THOMAS GARCIA, a/k/a “Biggz”
Life in prison
Mandatory minimum: 10 years in prison
Possession of a firearm in furtherance of a narcotics trafficking offense
THOMAS GARCIA, a/k/a “Biggz”
Life in prison
Mandatory minimum: five years, to be imposed consecutively to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaints, and the description of the Indictment and the Complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
El Departamento de Justicia Resuelve una Queja de Discriminacion Relacionada a Inmigración en Contra de una Agencia de EmpleoRead the Press Release
WASHINGTON – El Departamento de Justicia llego a un acuerdo hoy con Accountemps, una división de la empresa Robert Half International, Inc., una compañía con sede en Menlo Park, California, resolviendo alegaciones de que la compañía estaba involucrada en discriminación a base del estatus de cuidadania en violación del Acto de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento, basada en una queja por una cuidadana Estadounidense naturalizado, concluyo que Accountemps se rehusó a referir a la denuciante para una posición de contrato con el gobierno federal por que, como cuidadana naturalizada, la denuciante no había nacido en los Estados Unidos. Bajo el INA, los empleadores no pueden discriminar en contra de cuidadanos Estadounidenses basado en su estatus de cuidadania, incluyendo reuirse a contratarlos a causa de que hayan sido nacidos fuera de los Estados Unidos.
Bajo el acuerdo, Accountemps continuará refiriendo a la denunciante a posiciones para las cuales ella califíque, pagará $2,500 en sanciones civiles, proveerá adistramiento para su personal acerca de la provision anti-discriminación del INA, y será sujeto a monitoreo por un periodo de un año.
“La provision anti-discriminación del INA no reconoce diferencias en clases de cuidadanos Estadounidenses cuando se trata de su derecho a trabajar en los Estados Unidos,” dijo la Principal Deputada Assistente Procuradora General Vanita Gupta para la Divisiόn de Derechos Civiles. “Nosotros aplaudimos a Accountemps por su cooperación en resolver las preocupaciones planteadas por este asunto.”
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración es la oficina responsable por hacer cumplir con la provisión antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe discriminación por estatus de ciudadanía o del origen nacional durante la contrataciόn, el despido, el reclutamiento o la referencia por comisiόn, las prácticas injustas de documentación, represalias, e intimidación. Para más información sobre las protecciones contra discriminación en el empleo según las leyes migratorias, llame a la línea directa de OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidad auditiva), llame a la línea directa de OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidad auditiva), o para registrarse para un seminario gratis ofrecido a través del internet visite www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico al [email protected], o visite el sitio de Internet www.justice.gov/crt/about/osc.
Los solicitantes o empleados que consideren que fueron sujetos a (1) diferentes requisitos de verificación por su estatus de ciudadanía, estatus migratorio u origen nacional, o (2) discriminación por estatus de ciudadanía, estatus migratorio, u origen nacional con relación a la contratación, el despido y el reclutamiento o la referencia por comisión, deberán comunicarse a la línea dedicada a los trabajadores anteriormente citada para poderlos ayudar.
El Departamento de Justicia Resuelve Quejas de Discriminacion Contra Tres Agencias de Empleo en MemphisRead the Press Release
WASHINGTON – El Departamento de Justicia anunció que llegó a un acuerdo hoy con tres agencias de trabajo en Memphis: Prestigious Placement; PFSWeb, Inc.; y su sucursal, Priority Fulfillment Services, Inc. El acuerdo resuelve dos quejas alegando discriminación bajo la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del Departamento de Justicia encontró que las compañías se rehusaron a contratar a dos individuos de Puerto Rico quienes tenían suficientes cualificaciones porque las compañías creían que ellas nacieron en un país extranjero. Las compañías negaron los certificados de nacimiento validos de Puerto Rico de las trabajadoras y exigieron que presentaran certificados de naturalización aunque los puertorriqueños son estadounidenses de nacimiento. Bajo la provisión anti-discriminación de la INA, los empleadores no pueden discriminar durante la contratación o ponerle barreras adicionales a los trabajadores durante el proceso de verificación de elegibilidad de empleo basado en su ciudadanía o la ciudadanía percibida.
Bajo del acuerdo, las compañías recompensarán a los denunciantes sus sueldos perdidos; pagarán sanciones civiles as los Estados Unidos; se someterán a adiestramiento sobre la provisión anti-discriminación de la INA; cambiarán sus políticas de empleo y materiales de adiestramiento; y serán sujetos a monitoreo de sus prácticas de verificación de empleo por dos años.
“Los puertorriqueños son ciudadanos nativos y tienen el mismo derecho a trabajar como cualquier otro estadounidense,” dijo la Principal Deputada Asistente Procuradora General Vanita Gupta para la División de Derechos Humanos “No deberían tener que enfrentar estos tipos de barreras discriminatorias, y el Departamento de Justicia está comprometido en asegurar la igualdad de oportunidades de empleo.”
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC por sus siglas en inglés) es la oficina responsable por hacer cumplir con la provisión anti-discriminación de la INA. La ley prohíbe, entre otras cosas, discriminación basada en el estatus de ciudadanía y en el origen nacional en la contratación, el despido, o el reclutamiento o la referencia por comisión, las prácticas injustas de documentación, y represalia e intimidación.
Para obtener más información acerca de las protecciones contra la discriminación en el empleo según las leyes de inmigración, o para registrarse para un seminario gratis ofrecido a través del Internet, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 o al 1-800-237-2515, TTY (para personas con problemas de audición); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con problemas de audición); o visite el sitio web de la OSC en www.justice.gov/crt/about/osc.
Solicitantes o trabajadores que creen que fueron sometidos a: (1) requisitos diferentes de documentación o discriminación por causa de su estatus de ciudadanía, estatus migratorio o su origen nacional; o (2) discriminación por causa de su estatus de ciudadanía, estatus migratorio o el origen nacional en la contratación, el despido o el reclutamiento o referencia por comisión, deben comunicarse a la línea del trabajador de la OSC para obtener ayuda.
Dorchester Man Sentenced to 29 ½ Years for Role in Postal Letter Carrier ShootingRead the Press Release
BOSTON – A Dorchester man was sentenced today to 29 ½ years in prison in connection with the assault, robbery and kidnapping of a U.S. Postal letter carrier that took place just before Christmas, 2013.
Keyon Taylor, 22, was sentenced today by U.S. District Court Judge Denise J. Casper to 29½ years in prison and five years of supervised release after a federal jury convicted him in March 2015 of assault, robbery, kidnaping and firearm charges following a two-week trial. Taylor was also ordered to pay restitution to the victim in the amount of $625,000.
Taylor’s co-defendant Maurice Williams Miner-Gittens, 24, previously pleaded guilty to robbery and conspiracy, and possession of a firearm and was sentenced in May 2015 to 10 years in prison and three years of supervised release.
On Dec. 20, 2013, Taylor and Gittens rented a U-Haul van and followed a U.S. Postal delivery truck as a letter carrier was delivering holiday packages. When the letter carrier returned to his truck after making a delivery, Taylor confronted him with a gun pointed inches away from his head and demanded his wallet. While handing Taylor his wallet, the victim tried to move the gun away from his temple and was shot. The bullet entered his wrist, shattering a bone, and lodging in his forearm.
Taylor then repeatedly demanded the “drawer,” presumably in reference to a cash drawer. When the letter carrier told Taylor that the truck had no cash drawer, Taylor repeatedly pistol-whipped him. Taylor struck the victim so hard that a piece of the pistol grip broke off. Taylor then ordered the letter carrier into the back of the truck, and continued to beat him. He demanded the keys to the postal truck and the letter carrier’s postal uniform which Taylor then used to try to wipe up some of the victim’s blood.
Taylor, who was partially disguised, told the letter carrier not to look at him and threatened to kill him if the carrier did so. Moments later, frightened for his life, the letter carrier jumped out of the moving postal truck through the back cargo door. At the time, Taylor had carjacked the postal truck with the bleeding carrier inside. The victim ran for his life, in long johns and stocking feet. Civilians in the area provided assistance and called the police.
While the assault took place, Gittens was in the U-Haul van right behind the postal truck. In fact, Gittens got out and was directing traffic around the van and postal truck while Taylor was assaulting the letter carrier and then followed closely in the U-Haul van when Taylor drove off in the postal truck.
When the letter carrier jumped out of the postal truck, Taylor lost control of the truck and crashed into a snowbank. Taylor then fled through four backyards, carrying the victim’s pants and vest, as well as the revolver. His flight path, which led to two chair link fences, was marked by a trail of boot prints in the snow. While jumping over one of the fences, Taylor punctured his hand leaving blood and a piece of a purple nitrile glove on the top of the fence. He also left more blood on a second fence and on the handle of a recycling bin. The blood was matched to Taylor by DNA analysis. Taylor dumped the victim’s pants and vest in the bin; further DNA analysis showed that both the letter carrier and Taylor had bled on the uniform. The victim’s blood was also found on a black jacket which Taylor wore. The jacket was recovered days later from a coat closet outside Taylor’s mother’s house in Attleboro, some 34 miles away from where the shooting took place.
Around 10:00 p.m. on the night of the robbery, Gittens was stopped in the U-Haul van. Inside were two pairs of purple nitrile gloves that matched the one found on the fence along Taylor’s escape path. On the outside of the van was a smear of the victim’s blood.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William B. Evans made the announcement today. The Attleboro Police Department also assisted in the investigation. The case was prosecuted by Assistant U.S. Attorneys William F. Bloomer and Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
District Man Sentenced to 10 Years in Prison for Sexually Assaulting 17-Year-Old Victim in Broad Daylight Attack in Northwast WashingtonRead the Press Release
WASHINGTON - Gerald Canty, 24, of Washington, D.C., was sentenced today to a 10-year prison term, to be served after he completes a 21-year term he already is serving, for sexually assaulting a 17-year-old woman in a mid-morning attack that took place in December 2013 in Northeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Canty pled guilty in April 2015, in the Superior Court of the District of Columbia to one count of attempted first-degree sexual abuse. The plea, which was contingent upon the Court’s approval, called for the 10-year prison sentence to be served consecutively to a 21-year prison term Canty already is serving. The Honorable Lynn Leibovitz accepted the plea today.
In the other case, Canty earlier pled guilty in May 2014 to sexually assaulting an 18-year-old woman and attempting to kidnap three additional young women in a series of other incidents that took place between February and March of 2014, near the Minnesota Avenue Metro Station. In those matters, he pled guilty to one count of first-degree sexual abuse, one count of attempted kidnapping while armed, and two counts of attempted kidnapping. He was sentenced in July 2014 by the Honorable Jennifer Anderson to 21 years in prison.
Following his prison terms, Canty will be placed on supervised release for the rest of his life. He also must register as a sex offender for the rest of his life.
Today’s sentence involved an attack that took place on Dec. 17, 2013. According to the government=s evidence, at approximately 9:20 a.m. that day, the 17-year-old victim was walking alone in the 4600 block of Nannie Helen Burroughs Avenue NE. Canty approached her, brandished an object that she believed was a gun, and said, “Hey! Don’t move.” He demanded the victim’s property, reached his hand into her pocket and removed $3. Canty then told the victim to follow him, and walked her under a footbridge a short distance away. Under the footbridge, Canty demanded that the young woman perform a sexual act on him. She initially refused, but ultimately submitted to the defendant’s demand.
After the assault, the victim made an immediate report to the Metropolitan Police Department (MPD). Officers and detectives with MPD’s Sixth District, Youth Investigations Division, and Mobile Crime Division, responded immediately. The victim was taken to Washington Hospital Center, where she received a Sexual Assault Nurse Examination. DNA later linked Canty to the attack.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the Metropolitan Police Department, including officers and detectives from the Youth Division and the Sixth District, as well as mobile crime scene officers and technicians. He also expressed appreciation for the work of MPD’s Sexual Assault Unit and the Sixth District, which investigated the crimes that led to Canty’s earlier plea. He acknowledged the work of the District of Columbia Department of Forensic Sciences. Finally, he praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jason Manuel and Erica Vample; Victim/Witness Advocate Tracey Hawkins, and Assistant U.S. Attorney Amy H. Zubrensky, who investigated and prosecuted the case.
Cumberland Woman Pleads Guilty to Filing a False Tax ReturnRead the Press Release
Kathy Cullen admitted to failing to report funds to the IRS that she embezzled from her employer.
DES MOINES, IA – On June 17, 2015, Kathy Joan Cullen appeared in United States District Court, before the Honorable Celeste F. Bremer, and pled guilty to filing a false 2009 tax return, announced United States Attorney Nicholas A. Klinefeldt.
According to the plea agreement, Cullen embezzled money from her employer, 21st Century Cooperative. Over a period of six years, Cullen wrote over $1.3 million in checks to herself and deposited the proceeds into a personal bank account. Cullen admitted that she failed to account for the embezzled funds in her 2009 tax return.
Cullen is scheduled to be sentenced before the Honorable John A. Jarvey on October 1, 2015, at 3:30 p.m., in Des Moines, IA. Filing a false tax return carries a maximum term of three years imprisonment, up to a $100,000 fine, and up to one year of supervised release. Cullen is also required to pay restitution, in an amount ordered by the Court.
This case was investigated by the Internal Revenue Service – Criminal Investigation, and the Cass County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Chesterfield Man Sentenced on Embezzlement ChargesRead the Press Release
St. Louis, MO – JOEL WISHNE was sentenced to 30 months in prison involving his embezzlement of approximately $825,500 from SafeVision, LLC, during a three year period. In addition to the prison sentence, he was ordered to pay $782,500 restitution.
According to court documents, Wishne was a managing member of SafeVision, LLC, a company in the business of providing optical and optometry services. SafeVision also manufactured, sold and distributed eyewear products, including safety, industrial, sport, dress and other eyewear products both nationally and internationally. Wishne served as the accountant for the company and ran the day-to-day operations, which included the deposit of funds received, as well as payment of the company’s expenses. He maintained the account records and prepared the yearly financial statements, which were emailed to the other managing members of SafeVision. Unbeknownst to the managing members, Wishne inflated certain expenses and the cost of goods within the annual financial statement, while underreporting certain income that the company received in order to conceal the fact that he was embezzling money from the company and using these stolen funds for his own personal benefit.
Wishne, Chesterfield, MO, pled guilty in February to two felony counts of wire fraud. He appeared Thursday afternoon for sentencing before United States District Judge Catherine D. Perry.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney’s Office.
Bridgeport Man Charged with Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport returned an indictment yesterday charging LORENZO CARTER, 20, of Bridgeport, with possession of a firearm by a convicted felon.
The indictment alleges that, on April 8, 2015, CARTER possessed a .22 caliber handgun.
Prior to April 2015, it is alleged that CARTER had sustained felony convictions for carrying a pistol without a permit and illegally receiving a pistol. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted, CARTER faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
CARTER has been detained in state custody since his arrest on April 8, 2015.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI Safe Streets Task Force and the Bridgeport Police Department. This case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Benld Physician Indicted for Unlawfully Writing Prescriptions and for Making False StatementsRead the Press Release
A Benld physician was indicted by a federal grand jury on Tuesday, June 16, 2015, for use of a suspended or revoked DEA registration number when prescribing a controlled substance and for making false statements or material omissions from a DEA registration application, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Prescription medications are lawfully dispensed through a closed distribution system. The closed system begins with the importer who brings raw material into the United States, and extends to the manufacturer, distributor, physician, and finally to the dispensers or practitioners who provide the controlled substances to the customer or ultimate user. The Controlled Substances Act is designed to eliminate the diversion of drugs from legitimate channels to illegitimate channels by requiring strict registration and documentation requirements for all persons, including physicians, who are authorized by state law to dispense controlled substances. Federal law states that a prescription may only be issued by a practitioner who is (a.) authorized by a licensing state; and (b.) is also properly registered with the US Drug Enforcement Administration (DEA).
The Indictment explains that Larry Leone was a medical doctor licensed by the state of Illinois, until his state licenses to practice medicine and to prescribe controlled substances were suspended for one year in 2010. After serving his suspension, Leone was placed on probation by the Illinois Department of Professional Regulation. At the time that his Illinois medical license and his state license to prescribe controlled substances were suspended, Leone also voluntarily surrendered his federal DEA registration that authorized him to prescribe medications. That federal license was never renewed. Leone is charged in nine counts for unlawfully issuing nine (9) prescriptions for 1,260 Zolpidem Tartrate (Ambien) pills and 540 Diazepam (Valium) pills that were dispensed under the authority Leone’s DEA registration number, which had been surrendered and was revoked at the time the prescriptions were written.
Leone is also charged with one count of making a false statement. That count alleges that on November 11, 2014, the Defendant completed DEA Form 224 and applied for a DEA registration that would have authorized him to lawfully dispense controlled substances again. On that form, Leone was asked the following question,
"Has the applicant ever surrendered (for cause) or had a state professional license or controlled substance registration revoked, suspended, denied, restricted, or placed on probation, or is any such action pending?"Leone was charged for falsely answered "No" to that question and omitting material information from his application by failing to disclose prior disciplinary proceedings against his Illinois Physician and Surgeon License and his Illinois Controlled Substance License.
If convicted, Leone faces a maximum of 4 years in federal prison, not more than a $250,000 fine, and not more than 1 year of supervised release on each count. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing.
The investigation is being conducted by agents from the Drug Enforcement Administration (DEA) Office of Diversion Control. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Baton Rouge Man Convicted of Possessing Child Pornography and Making False Statements to the FBIRead the Press Release
BATON ROUGE, LA - United States Attorney J. Walter Green announced today that PIERRE A. MOOSEBROKER, JR., age 46, of Baton Rouge, Louisiana, has pled guilty before U.S. District Judge James J. Brady to possession of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B), and making false statements to Special Agents with the Federal Bureau of Investigation, in violation of Title 18, United States Code, Section 1001(a)(2).
During the guilty plea hearing yesterday, the defendant admitted to obtaining and possessing images of prepubescent child pornography and to lying to the FBI about, among other things, having never planned to force a female child to engage in sexual activity with him. In the plea agreement, which remains subject to Court approval, the parties agree that the defendant will be sentenced to 25 years imprisonment, followed by a lifetime term of supervised release.
The investigation is being handled by the FBI and the United States Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Chris Dippel.
Baltimore Heroin Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ronald Ross, age 27, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from January to June 24, 2014, members of the conspiracy obtained bulk quantities of heroin and packaged the heroin for retail distribution. The prepackaged heroin was provided to Ross on a daily basis, who then sold the heroin to retail customers at an open-air drug “shop” in the vicinity of the intersection of Baltimore and Bentalou Streets in Baltimore.
During his participation in the drug conspiracy, Ross admitted that he and others distributed between 100 and 400 grams of heroin of heroin.
Co-defendants Eric Johnson, age 38, Keith Gilliam, age 21, Sara Jones, age 29 and Nicholas Jones, age 23, all of Baltimore, previously pleaded guilty to their participation in the conspiracy. Johnson, Gilliam and Sara Jones are scheduled to be sentenced on July 23, 2015. Nicholas Jones is scheduled to be sentenced on August 31, 2015.
United States Attorney Rod J. Rosenstein praised ATF, the Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.