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18 June 2015
Montana Drug Operation Convicts 20 Defendants, Seizes 25 Guns and More Than Half a Million Dollars in MethRead the Press Release
GREAT FALLS – The U.S. Attorney’s Office announces today the completion of a Montana operation that convicted 20 defendants for methamphetamine, firearm and money laundering charges, resulting in the seizure of more than half a million dollars worth of meth. Operation Highline Crystal Highway joined more than a dozen law enforcement agencies in Montana and California and resulted in the seizure of an estimated 13 pounds of meth, and also identified another estimated 50 pounds of meth involved in the drug conspiracy. Law enforcement also seized 25 guns as part of the operation. The guns were either traded directly for meth or traded as payment for debt owed for meth. The defendants are also responsible for a monetary judgment totaling approximately $2.4 million for the money gained from the methamphetamine trafficking conspiracy, which includes nearly $56,000 in money laundering proceeds.
“This multi-agency collaboration is a testament to the power of strength in numbers,” said U.S. Attorney Michael W. Cotter of the District of Montana. “This operation dismantled an acute and violent threat to the people of Great Falls, Montana, and surrounding communities and I am pleased to announce the conviction of the 20th defendant in this operation.”
“It was a great investigative effort between local, state and federal agencies targeting a very significant drug distribution network in the Great Falls area and a Mexican source of supply based in California,” said Resident Agent in Charge Joe Kirkland of the Drug Enforcement Administration (DEA). “By dismantling a criminal organization of this size, the task force has had a huge impact on the distribution of methamphetamine in Montana.”
The 20th defendant who was sentenced today in Great Falls was Joshua Alberto Rodriguez, 29, of Los Angeles, California. He was sentenced after pleading guilty to crimes involving methamphetamine, firearm and money laundering conspiracies. U.S. District Court Judge Brian Morris of the District of Montana sentenced Rodriguez to over 22 years in prison, followed by five years supervised release. The court also ordered that Rodriguez was liable, along with the other defendants, for approximately $2.4 million in proceeds and nearly $56,000 in money laundering proceeds.
Operation Highline Crystal Highway is a major, multi-agency drug investigation first launched in late 2013. Law enforcement discovered a large-scale drug and firearm trafficking organization in north central Montana and beyond, which included suppliers out of Los Angeles, routinely bringing pounds of meth to Great Falls. Once in Great Falls, the meth would be distributed in Great Falls, Havre, Montana and Butte, Montana. In the final arrest that took place outside a Great Falls restaurant, law enforcement found one defendant with a loaded 9 mm semi-automatic pistol in his waistband, as well as a loaded .40 caliber, semi-automatic pistol in one of the take out bags with approximately 70 rounds of ammunition. Agents also seized approximately five pounds of meth from the defendant’s hotel room. The DEA tested the meth and its purity level was 100 percent. Meth seized during earlier parts of the operation also resulted in extremely high purity levels—ranging from 97 to 100 percent.
Law enforcement seized 25 guns, 19 of which were handguns and monetary judgments against defendants totaling approximately $2.4 million. Based on evidence collected during the investigation, other guns discussed by defendants or used in trade for drugs, but not recovered, included the FN Five Seven (referred to as the “Cop Killer”), AR-15 and AK-47. These weapons were likely attractive to this group because they are capable of piercing body armor. A large-caliber handgun, the Desert Eagle .50 caliber pistol, was also seized.
“These convictions serve to put criminals on notice that if you bring illegal drugs into this community, we will employ whatever means necessary to find you and bring you to justice, wherever you are,” said Police Chief David Bowen of the Great Falls Police Department.
To assist in investigating the Great Falls meth influx, law enforcement began to use a variety of investigative techniques, including physical surveillance, obtaining phone records, financial documents and search warrants in order to ascertain the location information on cellular phones and vehicles and utilizing undercover agents to infiltrate the organization. Over the course of the investigation, agents obtained 49 search warrants and a wiretap to monitor phone calls and the location of suspects.
A Montana grand jury ultimately indicted 20 defendants responsible for the drug trafficking organization. Nineteen of the defendants pleaded guilty and one was convicted at trial.
The case was prosecuted by Assistant U.S. Attorneys Jessica Betley and Tara Elliott of the District of Montana. The case was investigated by the Russell County, Montana, Drug Task Force, which includes representation from the Great Falls Police Department, Cascade County, Montana, Sheriff’s Office, Teton County, Montana, Sheriff’s Office, the DEA, U.S. Border Patrol, Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms. The task force also collaborated with the Havre Tri-Agency Task Force, IRS, the Montana Division of Criminal Investigation, Montana National Guard Counter Drug Task Force, the California Highway Patrol and the Orange County, California, Sheriff’s Office.
Montana Drug Operation Convicts 20 Defendants, Seizes 25 Guns and More Than Half a Million Dollars in MethRead the Press Release
The U.S. Attorney’s Office announces today the completion of a Montana operation that convicted 20 defendants for methamphetamine, firearm and money laundering charges, resulting in the seizure of more than half a million dollars worth of meth. Operation Highline Crystal Highway joined more than a dozen law enforcement agencies in Montana and California and resulted in the seizure of an estimated 13 pounds of meth, and also identified another estimated 50 pounds of meth involved in the drug conspiracy. Law enforcement also seized 25 guns as part of the operation. The guns were either traded directly for meth or traded as payment for debt owed for meth. The defendants are also responsible for a monetary judgment totaling approximately $2.4 million for the money gained from the methamphetamine trafficking conspiracy, which includes nearly $56,000 in money laundering proceeds.
“This multi-agency collaboration is a testament to the power of strength in numbers,” said U.S. Attorney Michael W. Cotter of the District of Montana. “This operation dismantled an acute and violent threat to the people of Great Falls, Montana, and surrounding communities and I am pleased to announce the conviction of the 20th defendant in this operation.”
“It was a great investigative effort between local, state and federal agencies targeting a very significant drug distribution network in the Great Falls area and a Mexican source of supply based in California,” said Resident Agent in Charge Joe Kirkland of the Drug Enforcement Administration (DEA). “By dismantling a criminal organization of this size, the task force has had a huge impact on the distribution of methamphetamine in Montana.”
The 20th defendant who was sentenced today in Great Falls was Joshua Alberto Rodriguez, 29, of Los Angeles, California. He was sentenced after pleading guilty to crimes involving methamphetamine, firearm and money laundering conspiracies. U.S. District Court Judge Brian Morris of the District of Montana sentenced Rodriguez to over 22 years in prison, followed by five years supervised release. The court also ordered that Rodriguez was liable, along with the other defendants, for approximately $2.4 million in proceeds and nearly $56,000 in money laundering proceeds.
Operation Highline Crystal Highway is a major, multi-agency drug investigation first launched in late 2013. Law enforcement discovered a large-scale drug and firearm trafficking organization in north central Montana and beyond, which included suppliers out of Los Angeles, routinely bringing pounds of meth to Great Falls. Once in Great Falls, the meth would be distributed in Great Falls, Havre, Montana and Butte, Montana. In the final arrest that took place outside a Great Falls restaurant, law enforcement found one defendant with a loaded 9 mm semi-automatic pistol in his waistband, as well as a loaded .40 caliber, semi-automatic pistol in one of the take out bags with approximately 70 rounds of ammunition. Agents also seized approximately five pounds of meth from the defendant’s hotel room. The DEA tested the meth and its purity level was 100 percent. Meth seized during earlier parts of the operation also resulted in extremely high purity levels—ranging from 97 to 100 percent.
Law enforcement seized 25 guns, 19 of which were handguns and monetary judgments against defendants totaling approximately $2.4 million. Based on evidence collected during the investigation, other guns discussed by defendants or used in trade for drugs, but not recovered, included the FN Five Seven (referred to as the “Cop Killer”), AR-15 and AK-47. These weapons were likely attractive to this group because they are capable of piercing body armor. A large-caliber handgun, the Desert Eagle .50 caliber pistol, was also seized.
“These convictions serve to put criminals on notice that if you bring illegal drugs into this community, we will employ whatever means necessary to find you and bring you to justice, wherever you are,” said Police Chief David Bowen of the Great Falls Police Department.
To assist in investigating the Great Falls meth influx, law enforcement began to use a variety of investigative techniques, including physical surveillance, obtaining phone records, financial documents and search warrants in order to ascertain the location information on cellular phones and vehicles and utilizing undercover agents to infiltrate the organization. Over the course of the investigation, agents obtained 49 search warrants and a wiretap to monitor phone calls and the location of suspects.
A Montana grand jury ultimately indicted 20 defendants responsible for the drug trafficking organization. Nineteen of the defendants pleaded guilty and one was convicted at trial.
The case was prosecuted by Assistant U.S. Attorneys Jessica Betley and Tara Elliott of the District of Montana. The case was investigated by the Russell County, Montana, Drug Task Force, which includes representation from the Great Falls Police Department, Cascade County, Montana, Sheriff’s Office, Teton County, Montana, Sheriff’s Office, the DEA, U.S. Border Patrol, Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms. The task force also collaborated with the Havre Tri-Agency Task Force, IRS, the Montana Division of Criminal Investigation, Montana National Guard Counter Drug Task Force, the California Highway Patrol and the Orange County, California, Sheriff’s Office.
Modesto Real Estate Attorney Indicted on Fraud Charges in a Short Sale SchemeRead the Press Release
FRESNO, Calif. — Robert Farrace, 51, of Modesto, was indicted today on three counts of wire fraud in connection with a fraudulent short-sale scheme, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Farrace was an attorney specializing in real estate transactions. He owned two investment properties in Modesto with substantial mortgage loans. In early 2010, he received foreclosure notices for the two properties. Farrace then created an entity called “Dignitas LLC” that he controlled but used a friend’s name as the company’s registered agent to conceal his control. Through Dignitas, Farrace submitted short sale offers to the bank that serviced the loans on both properties. During the process, Farrace misrepresented his relationship with Dignitas, and because the servicing bank did not know of the true relationship, it went forward and completed one of the short sales. The other sale was stopped by law enforcement and the bank.
This case is the product of an investigation by the Federal Housing Finance Agency–Office of Inspector General, the Federal Bureau of Investigation, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
If convicted, Farrace faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Miami Dade Police Department Detective Charged with Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
Today, the Justice Department announced that a grand jury in the Southern District of Florida charged Miami Dade Police Department (MDPD) Detective William Kostopoulos, 47, with using his law enforcement authority to violate motorists’ civil rights.
The indictment charges Kostopoulos with making traffic stops of three motorists in order to steal their money and property, in violation of the motorists’ rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. The indictment also charges Kostopoulos with making misleading statements in order to prevent the communication of information about his alleged crimes to federal law enforcement officers.
This case is being investigated by the Federal Bureau of Investigation (FBI), with assistance from the Homestead, Florida, Police Department. The matter is being prosecuted by Special Litigation Counsel Gerard Hogan and Trial Attorney Samantha Trepel of the Civil Rights Division as well as Assistant U.S. Attorney Tonya Long of the Southern District of Florida.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Miami Dade Police Department Detective Charged with Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
Today, the Justice Department announced that a grand jury in the Southern District of Florida charged Miami Dade Police Department (MDPD) Detective William Kostopoulos, 47, with using his law enforcement authority to violate motorists’ civil rights.
The indictment charges Kostopoulos with making traffic stops of three motorists in order to steal their money and property, in violation of the motorists’ rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. The indictment also charges Kostopoulos with making misleading statements in order to prevent the communication of information about his alleged crimes to federal law enforcement officers.
This case is being investigated by the Federal Bureau of Investigation (FBI), with assistance from the Homestead, Florida, Police Department. The matter is being prosecuted by Assistant U.S. Attorney Tonya Long of the Southern District of Florida, Special Litigation Counsel Gerard Hogan and Trial Attorney Samantha Trepel of the Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Nationals Indicted for Forest Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Garcia-Villa (Garcia), 46, and Uriel Silva-Garcia (Silva), both Mexican nationals, charging them with conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced. The men were also charged with damaging public land and natural resources as a result of cultivating marijuana near Little Poso Creek, which drains into the Kern National Wildlife Refuge.
According to court documents, Garcia and Silva were found at the cultivation site in May 2015. Agents removed 8,596 marijuana plants from the site, along with pesticides, fertilizer, trash, water lines, and equipment. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana.
This case is the product of an investigation by the U.S. Forest Service, Kern County Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Karen Escobar is prosecuting the case.
Garcia and Silva are in custody and are scheduled for arraignment on the indictment on June 24, 2015, in federal court in Fresno. If convicted of the drug offenses, the men face a statutory penalty of 10 years to life in prison and a $10 million fine. If convicted of the environmental crime, the men face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Meth Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Thomas Jason Strickland, 33, of Wilmer, Alabama, was sentenced in federal court today to 10 years imprisonment for his involvement in a conspiracy to possess with intent to distribute methamphetamine ice. Strickland pled guilty to the charge in September of 2014.
At the sentencing hearing this afternoon before United States District Court Judge Callie V. S. Granade, Strickland produced evidence that he suffered from chronic depression since his teenage years, which was exacerbated by his long-term drug abuse. Judge Granade imposed the 10-year sentence, which will be followed by a five-year term of supervised release. The judge ordered as a condition of his supervision that he receive mental health counseling and treatment as deemed necessary by the probation office. The judge did not impose a fine, but ordered that Strickland pay a $100 special mandatory assessment.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Gloria A. Bedwell.
Men Charged in $3.5 Million Grant Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Three Las Vegas men have been indicted by the federal grand jury on charges that they fraudulently obtained more than $3.5 million from small business owners for grant funding and services which were never provided and never intended to be provided, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada.
Michael Jones, 35, Jason Demko, 38, and Mike Guariglia, 47, all of Las Vegas, are charged with one count of conspiracy to commit mail fraud and wire fraud, four counts of wire fraud, and criminal forfeiture. They are scheduled to appear before U.S. Magistrate Judge Cam Ferenbach at 3:00 p.m. today for an initial appearance and arraignment.
“Advance fee fraud schemes are common and perpetrated for the sole purpose of enriching the fraudsters,” said U.S. Attorney Bogden. “We are currently prosecuting a number of these cases in which the defendants prey on unsuspecting business owners who are seeking grants for their businesses. If you think you have been victimized by persons committing this sort of crime, please contact the FBI.”
“These indictments highlight the FBI’s unrelenting commitment to investigate financial crimes and serve as a reminder for consumers to be vigilant and protect themselves,” said Special Agent in Charge Bucheit.
According to the indictment, from about December 2010 to the spring of 2013, the defendants and their coconspirators allegedly induced small business owners to give them money in exchange for services, such as business plans and other paperwork that would help them obtain grant funding. The defendants knew that the services were not necessary or likely to produce grants, and knew that the true purpose of the money was to personally enrich the defendants. The defendants and coconspirators received numerous complaints from the clients. In order to prevent and delay the clients from reporting them to law enforcement, the defendants made false promises and representations, told them their funding was forthcoming, operated under several business names, including Summit Business Consultants Inc., Inner Circle Corporation LLC, Sierra Investment Group, Inc. and Valley Business Development, and changed the physical locations of the businesses. Using this fraud scheme, the defendants allegedly fraudulently obtained more than $3.5 million from the victims.
If convicted, the defendants face a maximum of 20 years in prison and a $250,000 fine on all counts.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Sarah E. Griswold.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Member of Pima Salt River Tribe Pleads Guilty in New Mexico to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Patrick Watuema, 55, an enrolled member of the Pima Salt River Tribe in Ariz., pleaded guilty this morning to a felony information charging him with aggravated sexual abuse. Under the terms of his plea agreement, Watuema will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. Watuema also will be required to register as a sex offender.
Watuema was arrested on May 5, 2014, on a criminal complaint alleging that he engaged in a sexual act with a child who had not attained the age of 12 years. Watuema subsequently was indicted on May 21, 2014, on an aggravated sexual abuse charge. According to court filings, Watuema sexually assaulted a six-year-old Navajo child on April 30, 2014, in To’hajiilee, N.M., which is located in the Navajo Indian Reservation.
In entering his guilty plea, Watuema admitted sexually assaulting the six-year-old child victim on April 30, 2014. He also admitted to having unlawful sexual contact with the child victim on other occasions. Watuema acknowledged that the victim was under the age of 12 years at the time he committed the offense.
Watuema has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque Office of the FBI with assistance from Albuquerque Sexual Assault Nurse Examiners (SANE) at the University of New Mexico Hospital, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Media Firm Owner Sentenced to 135 Months in Prison in Scheme to Defraud Louisiana Car DealershipsRead the Press Release
A Louisiana media firm owner was sentenced yesterday to 135 months in prison for orchestrating an elaborate $1.2 million scheme to bill car dealerships in the Baton Rouge, Louisiana, and New Orleans areas for fictitious advertising services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Jerome R. McDuffie of the IRS-Criminal Investigation (IRS-CI) New Orleans Field Office made the announcement.
Raymond C. Reggie, 52, of Mandeville, Louisiana, pleaded guilty on Oct. 27, 2014, to five counts of wire fraud. Some of the conduct to which Reggie pleaded guilty he committed while on supervised release from a prior fraud conviction. In addition to imposing the prison sentence, U.S. District Court Judge Shelly D. Dick of the Middle District of Louisiana ordered Reggie to pay $1,217,657 in restitution, and to forfeit the same amount.
Reggie owned and operated Nexlevel Group, a firm that purchased and managed advertising for car dealerships in Southeast Louisiana. According to admissions made in connection with his guilty plea, Reggie billed the dealerships for fictitious advertising expenses, falsely representing that such expenses were actually incurred. Reggie admitted that once the dealerships issued the checks for the bogus expenses, he diverted the funds for his personal use and enjoyment. In total, the car dealerships issued 138 checks for more than $1.2 million for fictitious advertising services.
This case was investigated by the IRS-CI New Orleans Field Office. The case was prosecuted by Senior Litigation Counsel Jack Patrick of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rene Salomon and Ryan Crosswell of the Middle District of Louisiana.
Massachusetts Man and Rhode Island Man Indicted for Conspiracy to Provide Support to Islamic StateRead the Press Release
BOSTON – David Daoud Wright, a/k/a Dawud Sharif Wright, a/k/a Dawud Sharif Abdul Wright, a/k/a Dawud Sharif Abdul Khaliq, 25, of Everett, Mass. and Nicholas Alexander Rovinski, a/k/a Nuh Amriki, a/k/a Nuh al Andalusi, 24, of Warwick, R.I., were indicted today on a charge of conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Wright was also charged with conspiracy to obstruct justice and with obstruction of justice. On June 12, 2015, Wright and Rovinski were charged in a criminal complaint with conspiracy to provide material support to ISIL. Wright had previously been charged on June 3, 2015, with conspiracy to obstruct justice. Both men have been detained since their respective arrests, and a detention hearing is scheduled for both men on Friday, June 19, 2015, at 2:00 p.m.
Wright and Rovinski are alleged to have conspired with each other, with known and unknown co-conspirators, and also with Usaamah Abdullah Rahim, 26, Wright’s uncle, who lived in Roslindale until his death on June 2, 2015. Rahim was shot and killed after he attacked Boston Police Officers and FBI agents in a Roslindale parking lot. The indictment charges that Wright, Rovinski, and Rahim agreed to a plan to commit attacks and kill persons inside the United States, which they believed would support ISIL’s objectives. The indictment further charges that the attack plan included the beheading of at least one person, a New York woman, whom ISIL had identified for murder through a “fatwah,” or religious decree, to ISIL supporters.
The charge of conspiracy to provide material support provides a sentence of no greater than 15 years in prison, a lifetime of supervised release, and a fine of $250,000. The charge of conspiracy to obstruct justice provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of obstruction of justice provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement.
This investigation is being conducted by the Boston Joint Terrorism Task Force and the Rhode Island Joint Terrorism Task Force with critical assistance from the Rhode Island State Police, the Warwick, R.I. Police Department, the Rhode Island Fusion Center, the Boston Police Department, the Boston Regional Intelligence Center, the Massachusetts State Police, the Commonwealth Fusion Center, the Everett Police Department, Homeland Security Investigations, the Naval Criminal Investigative Service, and member agencies of the JTTF. This case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and Nadine Pellegrini of Ortiz’s Anti-Terrorism and National Security Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Marijuana Cultivator Indicted for Growing Marijuana in Mendocino National Forest and Environmental DestructionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Pablo Barreto-Cruz, 40, of Michoacán, Mexico, charging him with marijuana cultivation and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement conducted a month-long investigation of a suspected drop point for a marijuana grow in the Mendocino National Forest in Glenn County. On May 12, agents encountered Barreto-Cruz on a remote Forest Service road near the suspected drop point. Close by, investigators discovered nearly 3,000 marijuana plants and a camp area.
A Forest Service fisheries biologist estimated that the resource damage, rehabilitation, and repair of the site would cost far more than $1,000. The report concluded that the marijuana grow represented a threat to water quality and aquatic resources due to their use of fertilizer and pesticides that will likely reach water in the wet winter months. Further, the report noted that the chemicals at the site include labeled fertilizers, labeled rodenticides and unlabeled pink powder believed to be a toxic pesticide (carbofuran).
This case is the product of an investigation by the U.S. Forest Service and the Glenn County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Barreto-Cruz faces a minimum statutory penalty of five years in prison, a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mansfield man indicted for sale of counterfeit prescription pillsRead the Press Release
A grand jury returned a two-count indictment charging a Mansfield man with crimes related to the purchase and sale of counterfeit prescription drugs, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Tamacio Walls, 23, was indicted on one count of introducing misbranded drugs into interstate commerce and one count of trademark violations.
Walls purchased, warehoused, dispensed and offered for sale, counterfeit versions of Viagra (active ingredient Sildenafil), Cialis (active ingredient Tadalafil) and Levitra (active ingredient Vardenafil) to consumers without requiring consumers to provide any form of prescription from a licensed medical practitioner, as required by law, according to the indictment.
The indictment also charges that Walls did not inform consumers that said drugs were prescription drugs and that they should seek medical advice before consuming the drugs, and that Walls failed to provide any warnings to consumers concerning potential dangers associated with taking the drugs. Walls obtained the drugs from unauthorized sources in China and India. The customs declarations for the shipments to Walls typically misrepresented the package contents in an attempt to avoid detection and seizure by U.S. Customs officials, according to the indictment.
Walls intentionally trafficked in and attempted to traffic in goods, specifically counterfeit Viagra pills, while knowingly using on or in connection with said items certain counterfeit trademarks such as pill color, pill shape and other identifying characteristics which were identical to, or substantially indistinguishable from marks that were in use and registered for Viagra with the U.S. Patent and Trademark Office, and the use of which was likely to cause confusion or mistake, and which was likely to deceive others, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Robert W. Kern, following an investigation by the Department of Homeland Security and the United States Postal Inspection Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces Return to Brazil of Two Masterpieces Linked to Bank FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Deputy Special Agent in Charge Michael Shea of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations New England, announced today that a painting by Jean-Michel Basquiat called “Hannibal” (the “Basquiat”), as well as a Roman Togatus statue, were returned to Brazil at a repatriation ceremony at the United States Attorney’s Office in Manhattan, New York. The painting and the statue were smuggled into the United States in violation of customs law and were forfeited to the government as a result of civil forfeiture action brought by the United States.
Manhattan U.S. Attorney Preet Bharara stated: “Art and antiquities have special value and meaning that cannot readily be quantified. As a result, they have long been the subject of theft and deception, as well as a means to launder illicit proceeds. Art should serve to inspire the mind and nourish the soul, and not be allowed to become a conduit for crime.”
HSI Deputy Special Agent in Charge Michael Shea stated: "It is always a pleasure to return cultural artifacts to the people of another nation. I would like to thank our special agents and partners at INTERPOL for their diligence in this investigation. ICE will do everything in its power to help preserve and safeguard a nation's history by identifying, locating, and recovering stolen antiquities."
In related repatriation ceremonies held on September 21, 2010, and May 9, 2014, the U.S. Attorney’s Office for the Southern District of New York returned to Brazil three paintings – “Modern Painting with Yellow Interweave” by Roy Lichtenstein (the “Lichtenstein”), “Figures dans une structure” by Joaquin Torres-Garcia (the “Torres-Garcia”), and “Composition abstraite” by Serge Poliakoff (the “Poliakoff”) – that were smuggled into the United States.
The Basquiat and the Togatus once belonged to Brazilian banker Edemar Cid Ferreira. Ferreira, the founder and former president of Banco Santos, S.A. (“Banco Santos”), was convicted in Brazil of crimes against the national financial system and money laundering. In December 2006, Ferreira was sentenced in Brazil to 21 years in prison.
As part of the case, a Sao Paulo Court judge also ordered the search, seizure, and confiscation of assets that Ferreira, his associates, and members of his family had acquired with unlawfully obtained funds from Banco Santos. Those assets included the Basquiat, the Togatus, the Lichtenstein, the Torres-Garcia, the Poliakoff, and other artwork valued at $20 million to $30 million. The artwork was kept in several locations, including Ferreira’s home in the Morumbi neighborhood of Sao Paulo, the main offices of Banco Santos, and at a holding facility. When Brazilian authorities searched these locations, they found that several of the most valuable works of art were missing, including the Basquiat and the Togatus.
The Sao Paulo Court sought INTERPOL’s assistance after searching museums and institutions in Brazil for the missing artwork. In October and November 2007, INTERPOL and the Government of Brazil sought the assistance of the United States to locate and seize the missing works on behalf of the Brazilian government. The ensuing Southern District of New York and HSI investigation revealed that the Basquiat and the Togatus were shipped from the Netherlands to a secure storage facility in New York on August 21, 2007, and September 11, 2007, respectively. The invoices, however, failed to comply with U.S. customs laws in a number of respects. For example, the shipping invoices did not identify the pieces and falsely claimed that their value was $100 each. In fact, the Basquiat alone was recently appraised at $8 million.
HSI special agents based in New Haven, Connecticut, located and seized the Basquiat in November 2007, and the U.S. Attorney’s Office for the Southern District of New York filed a civil forfeiture Complaint alleging that the Basquiat had been brought into the United States illegally. Since the filing of the original Complaint in February 2008, the United States seized additional works of art and filed two amended Complaints seeking the forfeiture of the Lichtenstein, the Torres-Garcia, the Poliakoff, and the Togatus.
After extensive litigation, United States District Court Judge Richard J. Sullivan granted the government’s motion for summary judgment and entered an order forfeiting the Basquiat and the Togatus on May 10, 2013. The Second Circuit Court of Appeals affirmed Judge Sullivan’s order on September 9, 2014.
* * *
Mr. Bharara praised the investigative work of HSI in helping to locate and seize the painting. He was grateful for the assistance of the Department of Justice’s Office of International Affairs. Mr. Bharara thanked Brazilian authorities for their assistance in the case. He also acknowledged the assistance of the U.S. Department of State and the U.S. Embassy in Brazil for its assistance in the investigation.
The case is being handled by the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office. Assistant U.S. Attorney Alexander Wilson is in charge of the litigation.
Man Responsible for Three-Day Armed Carjacking Spree in Newark, New Jersey, Sentenced to More Than 19 Years in PrisonRead the Press Release
NEWARK, N.J. – A Newark man who committed three armed carjackings in a three-day period was sentenced today to 235 months in prison, U.S. Attorney Paul J. Fishman announced.
Jihad Brown, 29, previously pleaded guilty before U.S. District Judge Katherine S. Hayden to four counts of an indictment charging him with carjacking (Counts One, Three and Five) and using a firearm in furtherance of a crime of violence (Count Two). Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On May 5, 2011, Brown carjacked a family at gunpoint as they were picking up their three children at a relative’s home in Newark. During the carjacking, Brown walked up as the woman was securing her infant into the car-seat. Brown physically pressed the barrel of his gun against the woman’s head and shouted for everyone to get out of the car. Afterwards, Brown and his associates fled in the victims’ car.
The following day, on May 6, 2011, Brown carjacked a Newark resident at gunpoint as the man was backing out of his driveway. Brown fled in the victim’s car.
On the third day, May 7, 2011, Brown carjacked four individuals, including two nursing students and a two-year old girl. During the carjacking, Brown jumped onto the hood of the SUV and pointed a revolver at one of the victims through the open sunroof. Brown and his associates fled in the carjacked car.
Less than an hour later, Brown and an associate were in a different car when Newark police officers attempted to conduct a motor-vehicle stop. Brown and his associate fled. The ensuing police chase ended when Brown’s car ran a stop sign and collided with another car. Inside Brown’s car, officers found the revolver that Brown had used during the carjacking.
In addition to the prison term, Judge Hayden sentenced Brown to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Director Eugene Venable, with the investigation leading to today’s sentencing.
The government is represented Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Newark
Man Pleads Guilty to Civil Rights Charge in Connection with Rope Tied Around Neck of James Meredith Statue on Ole Miss CampusRead the Press Release
The Justice Department announced that Graeme Phillip Harris pleaded guilty today in federal court to threatening African-American students and employees at the University of Mississippi by helping place a rope around the neck of the James Meredith statue on campus.
According to documents filed in connection with the plea, Harris admitted to joining with others to use the cover of darkness to hang a rope and an outdated version of the Georgia state flag—which prominently depicts the Confederate battle flag—around the neck of the statue, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African-American student after its contentious 1962 integration. The incident occurred in the early morning hours of Feb. 16, 2014.
Harris was indicted by a federal grand jury on March 27 on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African-American students because of their race or color. This plea resolves all charges against Harris in the matter.
“We will not tolerate threats of racial violence intended to intimidate students and university employees,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “No one should have to endure threats or intimidation at our nation’s universities because of their race or the color of their skin.”
“The reprehensible actions of the defendant evoke painful memories of a shameful period in our past when some American citizens were subjected to threats and intimidation by lynching solely because of the color of their skin,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “Attempts to categorize the defendant’s offense conduct as a mere college prank only serve as a hollow denial of our collective history and a repudiation of the legacy of those who fought to obtain and preserve our historic civil rights. The U.S. Attorney’s Office, in conjunction with the DOJ Civil Rights Division, will aggressively prosecute hate crimes and other civil rights violations which occur in our district. I sincerely appreciate the assistance of the FBI and the University of Mississippi in the investigation and prosecution of this case.”
“What these individuals did was not a prank,” said Special Agent in Charge Donald Alway of the FBI Jackson, Mississippi, Division. “It was an intentional effort to belittle and intimidate persons of a particular race, and was exactly the type of action the federal civil rights statutes were enacted to prevent. The FBI is committed to the protection of the civil rights of all citizens and will continue to investigate allegations of crime motivated by hate.”
The investigation, which is ongoing, is being conducted by the FBI Jackson Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Man Pleads Guilty to Civil Rights Charge in Connection with Rope Tied Around Neck of James Meredith Statue on Ole Miss CampusRead the Press Release
WASHINGTON – The Justice Department announced that Graeme Phillip Harris pleaded guilty today in federal court to threatening African-American students and employees at the University of Mississippi by helping place a rope around the neck of the James Meredith statue on campus.
According to documents filed in connection with the plea, Harris admitted to joining with others to use the cover of darkness to hang a rope and an outdated version of the Georgia state flag—which prominently depicts the Confederate battle flag—around the neck of the statue, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African-American student after its contentious 1962 integration. The incident occurred in the early morning hours of Feb. 16, 2014.
Harris was indicted by a federal grand jury on March 27 on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African-American students because of their race or color. This plea resolves all charges against Harris in the matter.
“We will not tolerate threats of racial violence intended to intimidate students and university employees,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “No one should have to endure threats or intimidation at our nation’s universities because of their race or the color of their skin.”
“The reprehensible actions of the defendant evoke painful memories of a shameful period in our past when some American citizens were subjected to threats and intimidation by lynching solely because of the color of their skin,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “Attempts to categorize the defendant’s offense conduct as a mere college prank only serve as a hollow denial of our collective history and a repudiation of the legacy of those who fought to obtain and preserve our historic civil rights. The U.S. Attorney’s Office, in conjunction with the DOJ Civil Rights Division, will aggressively prosecute hate crimes and other civil rights violations which occur in our district. I sincerely appreciate the assistance of the FBI and the University of Mississippi in the investigation and prosecution of this case.”
“What these individuals did was not a prank,” said Special Agent in Charge Donald Alway of the FBI Jackson, Mississippi, Division. “It was an intentional effort to belittle and intimidate persons of a particular race, and was exactly the type of action the federal civil rights statutes were enacted to prevent. The FBI is committed to the protection of the civil rights of all citizens and will continue to investigate allegations of crime motivated by hate.”
The investigation, which is ongoing, is being conducted by the FBI Jackson Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Man Pleads Guilty in Manhattan Federal Court in Connection with Veteran’s Day Armed Robbery of Diamond District StoreRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LEON FENNER pled guilty yesterday to the armed robbery of a store in the Diamond District of Manhattan on November 11, 2014. FENNER pled guilty before United States District Judge William H. Pauley III.
According to the allegations contained in court documents previously filed in federal court, and statements made in Court during the plea of FENNER:
On November 11, 2014, FENNER carried out an armed commercial robbery of a jewelry store (the “Store”) on the 8th floor of a building on 47th Street in the Diamond District of Manhattan. The Store is not open to the public but is a space where clients can view and purchase jewelry. At the time of the robbery, the owner of the store (the “Owner”) and three other individuals were present inside the Store. At approximately 2:20 in the afternoon – in broad daylight as the Veteran’s Day Parade proceeded nearby – LEON FENNER, the defendant, dressed in a suit, carrying a bag, and appearing to be a messenger, came to the door of the Store. After entering, FENNER first said that he was there to serve the Owner of the Store with papers, and took two envelopes out of his bag before placing them on a desk. FENNER then took out a weapon that appeared to be a gun and pointed it at the Owner and the others present and demanded that they give him all the jewelry in the Store. As the robbery was occurring, a relative of the Owner arrived and was let into the Store. FENNER hit the Owner’s relative, using the weapon, as he entered the Store. The Owner and the others present in the Store emptied more than $600,000 worth of jewelry from a safe and other locations and placed it into FENNER’s bag, before he left the scene.
FENNER was identified based on fingerprint analysis of the envelopes left in the store and surveillance images.
FENNER, 58, of New York, New York, pled guilty to one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
FENNER is scheduled to be sentenced October 16, 2015, before Judge Pauley.
Mr. Bharara praised the investigative work of the New York City Police Department (“NYPD”) and the Joint Robbery Task Force, consisting of members of the NYPD, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Russell Capone and Gina Castellano are in charge of the prosecution.
Mail Carrier Charged with Taking Bribes to Deliver Packages Containing MarijuanaRead the Press Release
BIRMINGHAM – Federal Authorities today arrested a mail carrier on charges that he took bribes to deliver packages containing marijuana, announced U.S. Attorney Joyce White Vance, Assistant Special Agent in Charge Christopher Nugent, U.S. Postal Service - Office of Inspector General, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, and Alabama Law Enforcement Agency Secretary Spencer Collier.
The arrest of EARL JERON WHITE, 33, of Pleasant Grove, follows his indictment by a federal grand jury on May 28. The grand jury returned an indictment charging White with one count of possessing with intent to distribute marijuana in Jefferson County between March 2013 and April 2014. It also charged White with one count of being a public official who demanded or accepted payment for delivery of the U.S. mail within that same time. White appeared before a federal magistrate judge today for a formal reading of the charges against him.
The maximum penalty for the drug distribution charge is five years in prison and a $1 million fine. The maximum penalty for the bribery count is two years in prison and a $250,000 fine.
“Corruption of postal employees is a significant vulnerability and a serious breach of public trust,” Gonzalez said. "With the coordinated efforts of the U.S. Postal Inspection Service and our law enforcement partners, postal inspectors will continue their vigilant watch against anyone receiving bribes to transport illegal drugs through the U.S. Mail.”
The U.S. Postal Inspection Service, the U.S. Postal Service – Office of Inspector General, in conjunction with ALEA's State Bureau of Investigation, investigated the case, which Assistant U.S. Attorney John B. Felton is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Longmont man is sentenced to 84 months in prison for investment fraud schemeRead the Press Release
DENVER – Gary Snisky, age 49, of Longmont, Colorado was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 84 months in federal prison, for mail fraud and money laundering, federal authorities announced. Following his prison sentence, Snisky was ordered to serve 3 years each on supervised release. He was also ordered by Judge Moore to pay $2,531,032.22 in restitution to the victims.
Snisky plead guilty on January 5, 2015 and was indicted by a federal grand jury in Denver on November 19, 2013. Snisky’s co-conspirator, Richard Greeott, plead guilty on October 7, 2013 to mail fraud and money laundering charges and was sentenced by Judge Phillip A. Brimmer on April 27, 2015 to six months in federal prison for his significantly smaller role in the scheme.
According to information contained in court documents for both cases, including the plea agreements and indictment, from 2009 through 2011, Snisky operated Colony Capital in Colorado, which purported to be a private equity firm offering investment opportunities in bonds, futures trading, and other offerings. In 2011, Snisky shut down Colony Capital and formed Arete in Longmont, Colorado, which operated in a similar manner. As part of his scheme, Snisky repeatedly falsely told financial advisors and investors that he was an “institutional trader” who was “on Bloomberg,” which Snisky claimed made him part of an elite group of people who could “make markets” and who had access to lucrative opportunities to which ordinary investors did not have access.
From July of 2011 through January 2013, Snisky offered investors a “proprietary value model” which was based on using the investors’ money to purchase Ginnie Mae bonds. Throughout 2012, Snisky continued to make false assurances about the safety of investing in the Bond Program despite the fact that Snisky knew that he had not purchased any Ginnie Mae bonds as promised. Throughout the scheme, Snisky sent fabricated account statements to investors that falsely reflected that their money had been invested in the bonds as promised.
Additionally, in 2010, Snisky asked Greeott to develop an algorithm to support a fully-automated trading system for trading in the futures market. In 2011, Greeott believed that he had developed an algorithm for trading in the futures market that he tested in a simulated environment for several months. However, at all times, the algorithm was still in a developmental phase. At no time did anyone at Colony Capital or Arete trade a significant amount of money or make any real profit in the futures market. However, starting in 2010, Snisky falsely led investors, potential investors, and financial advisors to believe the algorithm was being used by Colony Capital, and later Arete, to profitably trade in the futures market. Based on these false representations, several victims invested money in Snisky’s futures trading program.
The net loss Snisky caused to investors in the bond and futures trading programs was $5,226,965.54. To date, as a result of asset forfeiture proceedings, victims are in the process of being paid restitution in the amount of $2,695,913.31. The remaining amount of restitution is $2,531,032.22, most of which is jointly liable between Snisky and Greeott.
“The defendant took advantage of investors through a completely fraudulent scheme,” said U.S. Attorney John Walsh. “The prison sentence handed down serves not only as a deterrent to would-be fraudsters, but also as reassurance to victims of this financial crime.”
"The FBI will continue to protect the financial markets by working closely with its law enforcement and regulatory partners,” said FBI Denver Division Special Agent in Charge Thomas Ravenelle. ‘We trust that the outcome of this investigation will deter others who are seeking to engage in similar criminal activity, and attempting to defraud innocent investors.”
“All too often we hear of hard working Americans who lose their life savings to investment schemes; their trust was violated when they were lied to about the success and profitability of the investments,” said Gilbert R. Garza, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
“Investment Schemes, like many financial crimes, erodes the integrity of our financial industries, and can threaten the economic and emotional health of our investors,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “It is critical we make every effort to protect the public from investment fraud schemes and its effect on our consumers by ensuring the integrity of the U.S. Mail.”
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case was prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne, with Assistant U.S. Attorney Tonya Andrews handling the forfeiture proceedings.
Lead Defendant in Blytheville Drug Conspiracy, Kenneth Brown, II, Is Sentenced to 151 MonthsRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Gregory Gant, Special Agent in Charge of the Alcohol, Tobacco, Firearms, and Explosives (ATF) Kansas City Field Division, announced today the conclusion of a three-year case involving the large-scale distribution of methamphetamine in Blytheville, Ark. United States District Court Judge J. Leon Holmes today sentenced Kenneth Brown, II, aka “Iceman,” the lead defendant in a 11-defendant indictment, to 151 months imprisonment for his role as the leader of the drug conspiracy. Brown, II, age 29, of Blytheville, is the final defendant to be sentenced in the case, which was comprised of 11 Blytheville defendants indicted by a federal grand jury on March 6, 2013, in Case No. 4:13-cr-00068 JLH.
Brown, II, was the lead defendant in the original 53-count indictment that involved a drug trafficking organization responsible for selling hundreds of pounds of methamphetamine. He pleaded guilty on December 1, 2014, to a superseding indictment charging him in nine drug or firearms counts. There is no parole in the federal system. Brown, II’s, sentence also includes five years of supervised release and the forfeiture of multiple firearms, and $7,530 in drug proceeds. Brown, II, entered into a plea agreement with the United States in which he pleaded guilty to conspiracy to distribute methamphetamine, with enhancements for using a firearm in connection with the offense and maintaining a drug premises. The United States dismissed the remaining eight counts of the superseding indictment.
“The commitment this office has made to eradicating drug trafficking and violent crime in Northeast Arkansas and the entire Arkansas Delta has never wavered,” Thyer said. “The citizens of Blytheville will not have to deal with these 11 individuals, who were bringing drugs, guns, and violence into the community, for many years. Kenneth Brown, II, in particular, was responsible for importing many kilograms of methamphetamine into Northeast Arkansas, and today’s sentence is the end result of that behavior. Let the sentences in this case be a warning: If you traffic in guns or drugs, you will serve time in prison.”
All members of the conspiracy pleaded guilty pursuant to plea agreements, and most were sentenced in April 2014. Renaldre Jackson was sentenced in September 2014. The other sentences in this case include:
• Tyrone McCray, 200 months, for possession with intent to distribute methamphetamine and felon in possession of a firearm (also qualified as a career offender under United States Sentencing Guideline § 4B1.1)
• Andre Robinson, 151 months, distribution of methamphetamine (also qualified as a career offender)
• Derrick Rhodes, 151 months, distribution of methamphetamine (also qualified as a career offender)
• Renaldre Jackson, 120 months, conspiracy to distribute methamphetamine
• Tremayne Brown, 120 months, conspiracy to distribute methamphetamine
• Kenneth Brown, Sr., 120 months, distribution of methamphetamine
• Brian Robinson, 120 months, possession with intent to distribute methamphetamine and possessing a firearm in connection with a drug-trafficking crime
• Bobby Knight, 72 months, possession with intent to distribute methamphetamine and possessing a firearm in connection with a drug-trafficking crime
• Issac Black, 60 months, possession with intent to distribute methamphetamine
• Rashead Staton, 60 months, distribution of methamphetamine
The investigation into Brown, II’s, organization, which included his father, Brown, Sr., brother, Tremayne Brown, and cousins Knight and McCray, began in early 2012. During the course of the investigation more than 15 controlled purchases of methamphetamine were made from members of the conspiracy resulting in the seizure of more than one kilogram of methamphetamine from these controlled purchases. Including other seizures during the execution of search warrants and traffic stops, approximately 1.7 kilograms of methamphetamine was recovered by law enforcement from this organization.
On January 18, 2013, law enforcement agents executed a search warrant at 1305 Dogwood, Blytheville, Ark., a drug stash house used by Brown, II, and others. Inside the home agents located Brown, II, in a bedroom that contained multiple firearms, 228.5 grams of methamphetamine and 26 pounds of marijuana. In Brown, II’s, pocket was a drug ledger that detailed more than $100,000 in drug debts owed to him.
The investigation was conducted by ATF, in partnership with the 2nd Judicial Drug Task Force, which includes officers from the Blytheville Police Department, the Osceola Police Department and the Mississippi County Sheriff’s Office.
Law Enforcement Officials Announce Results of Heroin InvestigationsRead the Press Release
HARRISONBURG, VIRGINIA – Acting United States Attorney Anthony P. Giorno, along with officials from the Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force, announced today three significant case results in the ongoing effort to combat the rising use and abuse of heroin.
In separate hearings today in the United States District Court, two local defendants were sentenced for distributing heroin that led to fatal overdoses while a third defendant, a Baltimore man who authorities identified as a major source of heroin in the Winchester region, pled guilty to a drug trafficking conspiracy that led to at least six heroin overdoses, three of which were fatal.
“The positive outcomes in these cases highlight the tireless efforts by law enforcement in this area to combat the epidemic of heroin overdoses that continues to torment the region and that has been spreading across the country,” Acting United States Attorney Anthony P. Giorno said today. “We will continue to pursue these important cases and will target the sources of this heroin both locally and elsewhere. These efforts supplement our continuing support for education, prevention and treatment programs that are similarly necessary to the success of our endeavors to combat heroin use and abuse in the region.”
“Heroin is not just a “big city” problem as evident in today’s sentencing announcements. Mr. Giles led a complex heroin trafficking network, controlling numerous drug dealers and drug users. Mr. Giles brought this lethal drug into the community of peaceful Winchester, Virginia, robbing people of their lives,” said Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration. “I say to drug dealers like Mr. Giles, there are no winners in this life and death game you have chosen to play. You will lose and pay a severe price for your actions. The announcement today is the result of the partnership between DEA agents, the Northwest Virginia Regional Drug and Gang Task Force and the United States Attorney’s Office of the Western District of Virginia. We will continue our work with our law enforcement partners and the community, every day, combating these dangerous drug trafficking organizations.”
“These cases were investigated from overdoses in the Northern Shenandoah Valley Region that are continuing to lead to significant suppliers in Baltimore, Maryland, thanks to a cooperative effort with the DEA, the United States Attorney’s Office and the Northwest Virginia Regional Drug and Gang Task Force,” Virginia State Police Special Agent Jay Perry, Coordinator of the Task Force, said today. “Our combined efforts are bringing and will continue to bring large scale dealers from Baltimore, Maryland, that are putting heroin on our local streets, to justice. We want Baltimore heroin dealers to take notice; when you sell to Virginia registered vehicles, and our citizens, we will track you down.”
Today in District Court, Christopher Rojuan Giles a.k.a. “C” and “Charlie,” 27, of Randallstown, Maryland, pled guilty to a one count information charging him with conspiracy to distribute heroin which resulted in six overdoses. Giles admitted today that between February 2013 and October 2014, he and other members of the conspiracy conspired to distribute more than 1,000 grams of heroin, resulting in overdoses, more than 280 grams of cocaine base (“crack”), and powder cocaine.
Evidence presented at today’s hearing by Assistant United States Attorney Elizabeth G. Wright showed the Giles, who operated in various locations in and around Baltimore, was a major source of heroin for smaller dealers and heroin users in the Winchester area. Evidence presented also proved that the heroin Giles distributed led to at least six heroin overdoses, including three fatal overdoses. The overdoses include the death of T.R.C. on November 17, 2013, the death of R.F.L. on March 19-20, 2014, the overdose of J.H.H. on March 21, 2014, the overdose of B.D.W. on April 5, 2014, the overdose of G.R.F. on September 5, 2014, and the death of B.E.W. on October 10, 2014. At sentencing, Giles faces a statutory penalty of between 20 years and life in prison.
As part of this plea, Giles admitted he provided the heroin that led to the non-fatal overdoses of J.H.H. and B.D.W. in March and April 2014, respectively. Three other defendants have previously been sentenced in federal court based upon the overdose of J.H.H. Two defendants, Stephanie Diane Alkire, 23, of Winchester, Virginia, and Donna Jean Jenkins, 37, of Winchester, Virginia, have previously entered pleas of guilty to distribution of heroin in connection with the overdose of B.D.W.
In a separate hearing, Scott Matthew Pierce, 44, of Stephens City, Virginia, who previously pled guilty to distributing heroin that led to an overdose, was sentenced to 210 months in federal prison. Pierce, who routinely purchased heroin from Giles in Baltimore and transported it back to Winchester, previously admitted to distributing heroin to victim R.F.L. on March 19, 2014. R.F.L. subsequently used the heroin purchased from Pierce, overdosed and died.
In May 2015, Brandy Dawn Kelly, 36, of Winchester, Virginia, pled guilty to one count in an indictment charging her and Giles with conspiracy to distribute heroin which resulted in the overdose of R.F.L., based upon their distributions with Pierce.
In a third hearing today, Danielle Nicole Orndorff, 27, of Winchester, Virginia, who previously pled guilty to distributing heroin that led to two overdoses, was sentenced to 163 months in federal prison. Combined with time she is serving for a state sentence pertaining to the first of the two overdoses, the total sentence is 15 years. Orndorff previously admitted to distributing heroin to victims B.M.B. and J.W.S., who both used the heroin and subsequently overdosed and died.
The investigation of these cases was conducted by the Drug Enforcement Administration and the Northwest Virginia Regional Drug Task Force. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg, and the Virginia State Police. Assistant United States Attorney Elizabeth G. Wright prosecuted the cases for the United States.
Lakewood man indicted on child pornography chargesRead the Press Release
Daniel Nieberding, 25, of Lakewood, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about September 6, 2010, through on or about February 8, 2011, Nieberding knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On March 31, 2011, images of child pornography were also found on his Dell laptop computer and external hard drive.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Cleveland Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Labor Union Treasurer Pleads Guilty to EmbezzlementRead the Press Release
BOISE - Helen Herold-Roden, 49, of Boise, Idaho, pleaded guilty today to embezzlement and theft of labor union assets, U.S. Attorney Wendy J. Olson announced. Herold-Roden pleaded guilty pre-indictment to a one-count criminal information filed by the U.S. Attorney’s Office.
According to the plea agreement, from 2002, until July 2014, Herold-Roden was the secretary-treasurer of the Communication Workers of America (CWA) Local Union (LU) 7603 in Meridian, Idaho. CWA LU 7603 members are employed in the telecommunications industry, and include employees of Century Link, AT&T, and the Idaho Statesman. Membership dues are based on a percentage of each member’s individual hourly wage and are electronically deposited into the CWA LU 7603 checking account at DL Evans Bank twice each month.
According to the plea agreement, from 2008, through 2014, Herold-Roden embezzled approximately $138,658 of funds belonging to CWA LU 7603 for her personal use. Herold-Roden accomplished this in two ways. First, as secretary-treasurer, she had check-signing authority for the CWA LU 7603’s checking account at DL Evans Bank. On approximately 28 occasions, she wrote duplicate checks to herself and vendors to pay personal bills. Second, as secretary-treasurer, she had an ATM/debit card for CWA LU 7603’s checking account at DL Evans Bank. On approximately 740 occasions, using the ATM/debit card, she made cash withdrawals, VISA debit card payments, and wire transfers to make personal payments to vendors such as Farmers Insurance, GEICO Insurance, Qwest, Intermountain Gas, Idaho Power, Verizon Wireless, GM Financial, Capital One, Chevron, Purchasing Power, HamLib, Experian, Starbucks, Fred Meyer, Albertson’s, Target, among others.
The charge of embezzlement and theft of labor union assets is punishable by up to five years in prison, a maximum fine of $10,000, and up to three years of supervised release.
Sentencing is set for September 8, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
“This defendant occupied a position of trust for workers in the telecommunications industry,” said Olson. “When individuals betray that trust for their own personal gain, this office will work closely with its law enforcement partners to investigate and prosecute.”
The case was investigated by the United States Department of Labor, Office of Labor-Management Standards.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Kentuckiana Physician Charged with Prescribing Pain Medications That Resulted in the Deaths of Five Patients Faces Additional Charges Including Conspiracy, Money Laundering and Health Care FraudRead the Press Release
LOUISVILLE, Ky. – A Kentuckiana physician charged with prescribing pain medications that resulted in the deaths of five patients, unlawful distribution or dispensing of controlled substances and health care fraud, has been charged with conspiracy, money laundering and an additional count of health care fraud announced Acting United States Attorney John E. Kuhn, Jr.
Jaime Guerrero, age 47, formerly a medical physician with offices in Louisville, Kentucky, and Jeffersonville, Indiana, was charged by superseding indictment on June 16, 2015.
According to the superseding indictment, beginning no later than November 1, 2009, and continuing through January 1, 2013, Guerrero conspired with others to knowingly and intentionally distribute and dispense, schedule II and III controlled substances to patients, without a legitimate medical purpose and beyond the bounds of professional medical practice.
Further, beginning in December, 2009, and continuing through May 2014, Guerrero allegedly unlawfully prescribed and dispensed schedule II and schedule III pain medications to 30 patients, without a legitimate medical purpose and beyond the bounds of professional medical practice.
Further, the superseding indictment charges Guerrero with dispensing Oxycodone, a schedule II controlled substance, to K.J., between June 6, 2011, through August 25, 2011, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in K.J.’s death on or about August 29, 2011. That Guerrero intentionally distributed and dispensed, Methadone, a schedule II controlled substance, to D.N., between December 15, 2009, through April 1, 2010, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in D.N.’s death on or about April 5, 2011. That Guerrero knowingly and intentionally distributed and dispensed, Oxycodone, to R.S., between December 10, 2009, through February 9, 2010, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in R.S.’s death on or about February 18, 2010. That Guerrero dispensed Oxycodone, to P.F. December 28, 2009, and continuing through February 20, 2012, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in P.F.’s death on or about March 3, 2012. That Guerrero knowingly and intentionally distributed and dispensed, Hydrocodone, a schedule III controlled substance, to S.O., between January 6, 2010, and continuing through September 16, 2011, without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in S.O.’s death on or about September 24, 2011.
Guerrero is further charged with three counts of health care fraud for fraudulently billing various health care benefit programs and for submitting fraudulent claims for patient health care counseling. Specifically, on May 26, 2011, June 15, 2011, and June 22, 2011, Guerrero allegedly saw more than 100 patients on each of the dates, by himself, and spent approximately 3 minutes or less with each patient, and fraudulently billed various health care benefit programs, for office visits at a higher code than the service provided. And for directing a staff member, who was not a licensed counselor, to provide drug education classes to patients, and falsely and fraudulently, bill various health care benefit programs, by submitting claims for 15-30 minute counseling sessions while the defendant was out of the office. In addition, the superseding indictment charges Guerrero with falsely and fraudulently submitting over 100 claims to various health care benefit programs for office visits at a higher code than the service provided; for office visits that were not medically necessary or within the course of usual medical practice; submitting claims for services that were not sufficiently documented in the patient’s medical record; and making claims for office visits as though a physician saw the patient, when in fact, a nurse practitioner saw the patient.
The superseding indictment includes a money laundering charge. Guerrero is accused of redeeming (paying the taxes) a building located at 1201 West Wall Street in Jeffersonville, Indiana, with $89,556.25 in cash derived from unlawful activity - the unlawful dispensing and distribution of controlled substances and health care fraud.
If convicted at trial, Guerrero faces up to life in prison, a financial fine and a period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the U.S. Drug Enforcement Administration (DEA), Indiana and Kentucky Medicaid Fraud Control Units, and Louisville Metro Police Department (LMPD).
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Kanawha County man pleads guilty to federal firearm offenseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Kanawha County man pleaded guilty today in federal court in Charleston to being a felon in possession of a firearm. Travis Lee Hudnall, 30, of Hansford, West Virginia entered a guilty plea to possessing a Remington 12 gauge shotgun that he pawned in Charleston on March 13, 2014. Hudnall had previously been convicted in 2008 in Kanawha County of daytime entering without breaking, a felony offense that made it illegal for Hudnall to possess a firearm.
Hudnall faces up to 10 years in federal prison when he is sentenced on September 17, 2015.
The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
KC Woman Sentenced for $3 Million Fraud Scheme That Forced Employer to CloseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for a nearly $3 million fraud scheme that forced her employer out of business.
Irene Marie Brooner, 52, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to five years in federal prison without parole. The court also ordered Brooner to pay $2,963,914 in restitution and to forfeit to the government a 2004 Lexus and numerous assorted jewelry.
On Oct. 22, 2014, Brooner pleaded guilty to bank fraud. Brooner, a certified public accountant, worked at Galvmet, Inc., a sheet metal fabrication facility and steel service center located in Kansas City, from 2001 until her termination in February 2014. At its peak in 2008, the company had 26 employees and $14 million in annual sales. Galvmet filed for bankruptcy and ceased operations in 2014. At the time of closing, the company had 18 to 20 employees and $10 million in annual sales.
Brooner’s duties as controller included managing payroll, accounts receivable and payable, and maintaining the ledger at Galvmet.
Brooner admitted that, over a period of more than 10 years (January 2004 until February 2014), she created a total of 389 unauthorized Automated Clearing House (ACH) transactions from Galvmet’s bank account to her personal bank accounts. (An ACH is a batch-oriented funds transfer system that includes direct deposits of payroll from companies.) Those unauthorized ACH transactions included 148 payments to her checking account and 133 payments to her savings account. Brooner also defrauded Galvmet by inflating her salary. From March 2004 to December 2011, Brooner manipulated the payroll account to increase her net pay on approximately 108 payroll checks.
Brooner’s fraud scheme resulted in a loss of at least $1,863,914 to Galvmet. As a result, Galvmet ceased operations. While reviewing bank records during the filing of Galvmet’s Chapter 13 bankruptcy in February 2014, the company’s president noticed unauthorized transfers from Galvmet’s payroll account to Brooner’s personal account. He reported the apparent embezzlement to the FBI.
To keep the scheme going, Brooner also falsified documents to support Galvmet’s operating loan with Missouri Bank & Trust, causing an additional loss to the bank of $1.1 million. The total loss from Brooner’s fraud scheme was $2,963,914.
Brooner spent the embezzled funds on personal items. Brooner spent some of the proceeds to remodel, stock, furnish and decorate the ornately-finished bar in the basement of her new home. The bar, which she called “the Dirty Duck,” includes seating for approximately 15, a granite bar top, four or five tap lines, a refrigeration system, three flat-screen televisions, a smoke machine at the entrance, two couches and stained wainscoting around the room approximately eight feet tall. Mannequins, positioned throughout the bar, are outfitted with authentic U.S. and German uniforms and weaponry from the World War II era, including a Thompson sub-machine gun and multiple M-1 Garands with attached bayonets. Brooner told FBI agents that her husband, a carpenter, remodeled the bar in 2003 and 2004. From 2004 to 2014, Brooner spent $18,383 on alcohol.
Brooner’s spending included paying off her mortgage for $289,290, buying $81,686 in jewelry, and spending at least $400,392 on clothing and other retail, $97,180 on restaurants, $78,439 on vehicles, $169,389 on furniture and home decor, $62,003 on travel, $38,317 on electronics, $21,346 in ATM withdrawals, $59,571 on spa visits and beauty items, $68,745 on tuition for her children, $18,383 on alcohol, $104,060 to her children, $216,377 in assorted checks under $500, $64,557 in donations, $254,168 in other credit cards, and by purchasing other items.
Brooner purchased a 2004 Lexus R33 sport utility vehicle, on which she made 64 payments totaling $51,813. Brooner also bought 69 pieces of jewelry and accessories from Meierotto’s Midwest Jewelers totaling approximately $29,701 and 82 pieces of jewelry and accessories from Tivol Jewelers totaling approximately $51,984.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.
Jury Convicts Pittsburg, Kan., Man on Federal Firearms, Drug ChargesRead the Press Release
WICHITA, KAN. - A jury has convicted a Pittsburg, Kan., man on federal firearms and drug charges, U.S. Attorney Barry Grissom said.
James D. Russian, 57, Pittsburg, Kan., was convicted June 17 on one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of ammunition after a felony conviction, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of possession with intent to distribute marijuana.
During trial, prosecutors presented evidence that on March 27, 2013, Russian led police on a car chase from Barton County, Mo., to Crawford County, Kan., when they tried to stop him to investigate a report he threatened two people with a machete and a gun. Russian abandoned his car and hid in a wooded area before he was arrested. Investigators found marijuana, firearms and ammunition in his possession. Because of a prior felony conviction, Russian was prohibited by federal law from possessing firearms or ammunition.
Sentencing is set for Sept. 3. The crimes carry the following penalties:
Unlawful possession of a firearm or ammunition following a felony conviction: A maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and not more than life and a fine up to $250,000.
Possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Grissom commended the Crawford County Sheriff’s Office, the Barton County Sheriff’s Office, the Liberal (Mo.) Police Department, the Pittsburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Debra Barnett for their work on the case.
Joint ATF, GBI and Athens Clarke County Police Violent Crime Reduction Partnership Leads to Nineteen Defendants' ArrestsRead the Press Release
MACON, GEORGIA – The Bureau of Alcohol, Tobacco, Firearms and Explosive’s (ATF), the Georgia Bureau of Investigation and the Athens Clarke County Police Department (ACCPD) are working jointly on an initiative aimed at the prevention and reduction of violent crime which has resulted in fifteen (15) indictments charging nineteen (19) defendants with a variety of federal firearms and drug offenses announced United States Attorney Michael J. Moore of the Middle District of Georgia. All of these charges are brought within the Athens Division of the Middle District of Georgia.
Those charged in the referenced indictments include the following, to-wit:
Shamier O’Neal Berry, age 21, of Athens, Georgia, was arrested today as a result of an indictment charging distribution of cocaine.
Steven Maurice McKinley, age 22, of Athens, Georgia, was detained today as a result of an indictment charging distribution of methylphenidate and marijuana.
Terrance Jerome Clarke, age 27, of Athens, Georgia, was detained today as a result of an indictment charging two (2) counts of possession of a firearm by a convicted felon, three (3) counts of distribution of drugs and two (2) counts of possession of a firearm in furtherance of a drug trafficking crime.
Cicognac Octavius Rivers, age 25, of Athens, Georgia, was detained today as a result of an indictment charging possession of a firearm by a convicted felon.
Frederick Mitchell, Sr., age 82, of Athens, Georgia, was arrested today as a result of an indictment charging conspiracy to possess with intent to distribute cocaine and distribution of cocaine.
Frederick Mitchell, Jr., age 45, of Athens, Georgia, was arrested today as a result of an indictment charging conspiracy to possess with intent to distribute cocaine and two (2) counts of distribution of cocaine.
Christopher Randall Boss, age 31, of Athens, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Tirrell Deon Bush, age 41, of Athens, Georgia, was arrested today as a result of an indictment charging two (2) counts of distribution of cocaine.
Chasity Caldwell age 33, of Athens, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Dontavous Malcom, age 22, of Athens, Georgia, was arrested today as a result of an indictment charging three (3) counts of distribution of cocaine.
Quometric Quashaun Smith, age 28, of Athens, Georgia, was arrested today as a result of an indictment charging possession of an unregistered firearm and possession of a firearm with an obliterated serial number.
Shammar D. Whitehead, age 26, of Athens, Georgia, was arrested today as a result of an indictment charging distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime.
Jamie Lee Bowen, age 31, of Maysville, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Royce Van Court, Jr., age 32, of Winder, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Cherry Whatley, age 47, of Winder, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Demarcus Ellison, age 21, of Athens, Georgia, was detained today as a result of an indictment charging two (2) counts of distribution of cocaine.
Xavier Chavez Johnson, age 24, of Athens, Georgia, was arrested today as a result of an indictment charging possession with intent to distribute methamphetamine.
More arrests are expected.
“This initiative demonstrates how committed ATF, along with ACCPD and the GBI, are to reducing violent crime that affects the community. It truly is a joint effort, bringing all resources to a common goal, which is to reduce violent crime,” said ATF Assistant Special Agent in Charge Aldino Ortiz.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The cases were investigated by the ATF and Athens Clarke County Police Department.
Jamaican National Sentenced to 10 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Sophia Jones, age 40, a Jamaican citizen residing in Montgomery Village, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute heroin and marijuana, possession with intent to distribute heroin, and using a phone in furtherance of drug trafficking. Jones was convicted on January 24, 2014, after a 12-day jury trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police.
According to testimony at her trial, Jones was a member of a drug conspiracy which involved at least one kilogram of heroin and 100 kilograms or more of marijuana. As part of the drug conspiracy, Jones’ co-conspirators transported drugs from Mexico into Texas and then on to Maryland. For example, beginning in late July 2012, co-defendants Amir Ali Faraz and Javier Escobar-Bucerra, traveled from Texas to Maryland with heroin to sell. A marijuana customer of Faraz’ introduced them to Harold Bartrum. Bartrum was only interested in purchasing marijuana, but located a customer for the heroin. Faraz and Escobar-Bucerra sold nine ounces of heroin through Bartrum to this individual and discussed with Bartrum returning to Maryland with marijuana.
In September 2012, Faraz and Escobar-Bucerra traveled to Maryland from Texas with at least one kilogram of white powder heroin and between 9 ounces and 2.2 pounds of black tar heroin. Bartrum again assisted them in selling the heroin, arranging sales to several people, including Cecil McCalla. According to trial testimony, McCalla contacted his niece, Sophia Jones, who agreed to sell the heroin. During the investigation, Jones was intercepted in telephone conversations arranging for the distribution of heroin on at least four occasions. On October 7th and 11th Jones distributed a total of approximately 14 grams of heroin. On October 9th Jones distributed 50 grams of heroin and on October 15th she distributed between100 and 110 grams of heroin. Jones was also intercepted discussing efforts to obtain marijuana and Bartrum’s efforts to get marijuana from the Texas sources (Faraz and Escobar-Bucerra).
Amir Ali Faraz, age 46, of Laredo, Texas, was also convicted after trial and was sentenced to 20 years in prison for conspiracy to distribute heroin and marijuana, possession with intent to distribute heroin, using a phone in furtherance of drug trafficking and interstate travel to promote drug trafficking activities.
Javier Escobar-Bucerra, age 30, of Laredo, Texas; Harold Bartrum, age 44, of Hyattsville, Maryland; and Cecil Rex McCalla, age 50, of Adelphi, Maryland, pleaded guilty to their roles in the conspiracy. Escobar Bucerra and Bartrum were each sentenced to 64 months in prison; and McCalla was sentenced to 140 months in prison.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Prince George’s County Police Department, Maryland State Police and Virginia State Police, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Jacksonville Man Indicted for Attempting to Entice A Child to Engage in Illegal Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Jon Christopher Stoune (43, Jacksonville) has been indicted by a federal grand jury and charged with attempted enticement, via the Internet, of a person he believed to be a minor child for the purpose of engaging in illegal sexual activity. If convicted, he faces a mandatory minimum penalty of 10 years, up to life, in federal prison. Stoune was arrested on April 21, 2015, in St. Augustine, Florida and remains in custody on related state charges.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Highland Heights man indicted for alleged murder-for-hire plotRead the Press Release
A grand jury indicted a Highland Heights man for charges related to a murder-for-hire plot, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
James A. Martino, 65, was indicted on one count of use of interstate commerce facilities in the commission of murder-for-hire and one count of financing extortionate extensions of credit.
The indictment alleges that between January and June 2013, Martino and another individual conspired to use interstate-commerce facilities with the intent that a murder be committed in exchange for a promise to pay approximately $40,000. It further alleges that Martino advanced approximately $5,000 to another individual for the purposes of making extortionate extensions of credit between November 2014 and January 2015.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases the sentence will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown and M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Health Care Fraud Sentence Handed DownRead the Press Release
PHILADELPHIA - Jermaine Hairston, 40, of Philadelphia, PA, was sentenced today to 38 months in prison and three years of supervised release, for health care fraud and aggravated identity theft. Hairston stole the personal identifying information of an emergency room physician and used it to call in fake prescriptions for expensive medications in the names of individuals on medical assistance. Hairston, and others, would pick up the prescription medication, generating a claim to the patient's health insurance, and then sell the medication for cash.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered Hairston to pay restitution in the amount of $13,386.63.
The case was investigated by the Food and Drug Administration's Office of Criminal Investigations, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General. It was prosecuted by Assistant United States Attorney Elizabeth Abrams.
Harrisburg Man Sentenced to Five Years Imprisonment on Child Pornography ChargesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge Sylvia H. Rambo sentenced Robert K. Gallmann, Jr., age 56, of Harrisburg yesterday to five years in prison for receipt and distribution of child pornography, and ordered the defendant to serve 10 years in supervised release following completion of the sentence.
According to U.S. Attorney Peter Smith, Gallmann was indicted by a federal grand jury in Harrisburg in September 2013. He pled guilty in November 2014 pursuant to a plea agreement.
This case was investigated by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Georgia Man Sentenced to More Than 21 Years in Prison for Sexually Exploiting Minors in ThailandRead the Press Release
A Georgia man was sentenced today to 262 months in prison for engaging in sexually explicit conduct with minors and producing images and videos of that conduct during trips to Thailand, and transporting the child pornography into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Florence Nakakuni of the District of Hawaii and Executive Associate Director Peter Edge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) made the announcement.
Ronny Lee Waldrip, 64, of Douglasville, Georgia, pleaded guilty on Nov. 7, 2014, before U.S. Magistrate Judge Richard L. Puglisi to one count of sexual exploitation of a minor outside the United States for the purpose of producing visual depictions of such conduct. Senior U.S. District Court Judge Helen Gillmor of the District of Hawaii presided over Waldrip’s sentencing, and also ordered that he pay $45,000 in restitution.
In connection with his guilty plea, Waldrip admitted that he traveled to Thailand on numerous occasions to engage in sexual conduct with minor females. Specifically, he admitted that he traveled to Thailand in 2010 and 2011 for the purpose of inducing and enticing minors into engaging in sexual acts, and to photographing or recording such conduct without the victims’ knowledge or permission.
Waldrip also admitted that, on Feb. 13, 2012, he traveled from Bangkok to Honolulu knowingly transporting a laptop computer containing images and videos of child pornography, including videos of him engaging in sexual acts with minor females, including three victims who were 14 and 15 years old at the time. Waldrip further admitted to using the Internet to distribute the images and videos of the three minor victims to another U.S. citizen whom Waldrip knew was interested in child pornography.
This case was investigated by ICE-HSI in Honolulu and Bangkok. The Royal Thai Police and the Justice Department’s Office of International Affairs also provided assistance. This case was prosecuted by Trial Attorneys Sarah Chang and Michael Grant of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Ron Johnson of the District of Hawaii.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
Four Defendants Indicted in Drug Trafficking Ring That Shipped Methamphetamine and Marijuana to Hawaii and New YorkRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Epati Malauulu, 40, of Suisun City; John Ortiz, 43, of Vallejo; Algernon Tamasoa, 26, of Sacramento; and Francisco Poloai, 43, of Dixon, charging them with conspiracy to distribute methamphetamine, attempted distribution of methamphetamine, distribution of marijuana, and use of a communications facility to facilitate a drug trafficking crime, United States Attorney Benjamin B. Wagner announced.
According to court documents, beginning in August 2014 and continuing to June 4, 2015, the defendants were involved in shipping packages of methamphetamine from Vallejo and elsewhere to Honolulu, Hawaii, using the U.S. Postal Service and FedEx. On at least four occasions, investigators in Hawaii seized packages containing approximately 12 pounds of methamphetamine. On a separate occasion, investigators seized a package containing one pound of marijuana destined for Brooklyn, New York. On June 4, 2015, Malauulu, Ortiz, Tamasoa, and Poloai were arrested. Malauulu, Ortiz, and Tamasoa are in custody.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the IRS-Criminal Investigation, the Solano County Sheriff’s Office, the Fairfield Police Department, the Vallejo Police Department, and the Contra Costa County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
The investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) that was established in 1982. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, Malauulu, Ortiz, and Tamasoa each face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Poloai faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Forty Eight Columbia Point Dawgs Charged in Federal SweepRead the Press Release
BOSTON – Over 500 federal, state, and local law enforcement officers carried out arrests and executed more than 30 federal search warrants early this morning as a result of a two-year federal, state, and local wiretap investigation dubbed, “Operation Rising Tide.” Six federal indictments charging 48 leaders, members, and associates of the Columbia Point Dawgs (CPD) with drug trafficking and firearm charges were unsealed today in connection with the sweep.
According to documents filed in court, the CPD, also known on the street as “the Point,” is Boston’s largest and most influential city-wide gang. The criminal organization started in the 1980s in the former Columbia Point Housing Development (now Harbor Point) and, over the years, gang members established drug trafficking crews throughout Boston. Over time, the group also trafficked drugs from Boston to Maine. It is alleged that, during the course of the investigation, the CPD was responsible for the distribution of multiple kilogram quantities of heroin, cocaine, crack cocaine, and oxycodone throughout Boston and Maine.
Court documents allege that the CPD established its dominance in the Boston gang drug distribution business through a pattern of violence and intimidation, and that members of CPD have been responsible for numerous shootings of rival gang members over the years. In particular, in the past year and a half, the CPD has been engaged in a violent gang war with the Greenwood Street Posse, and other gangs aligned with Greenwood, which has resulted in numerous shootings. Law enforcement officers seized 14 firearms during the course of the investigation. On several occasions, guns were seized after investigators heard through court-authorized cellphone wiretaps that an individual was about to engage in a shooting.
Of the 48 persons charged in the indictments, 41 are in custody. The investigation has resulted in the seizure of, among other things: 31 firearms; multiple boxes of ammunition; heroin, cocaine, crack cocaine, oxycodone pills, and marijuana, as well as drug trafficking paraphernalia; 15 vehicles, including a Maserati, a Mercedes Benz, and an Audi; and $1.5 million in cash.
United States Attorney Carmen M. Ortiz; Suffolk County District Attorney Daniel F. Conley; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner Evans; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; and Commissioner Carol Higgins O’Brien of the Massachusetts Department of Correction, made the announcement today. The cases are being prosecuted by Assistant United States Attorneys Emily Cummings and Michael Crowley of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former U.S. Army Contractor in Iraq Sentenced to Federal Prison for Stealing in Excess of $2.6 Million in U.S. Military EquipmentRead the Press Release
In Waco, 47-year-old Stacey B. Hines of Lacey, WA, a former contractor for the U.S. Army employed by Raytheon and assigned to Camp Taji in Iraq as an advisor to the Iraqi Army, was sentenced to 46 months in federal prison for stealing U.S. government property valued at more than $2.6 million and selling it on the black market in Iraq announced Acting United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Walter Smith, Sr., ordered that Hines pay $2,638,736.34 restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Smith sentenced Hines yesterday afternoon.
On April 9, 2015, Hines pleaded guilty to one count of conspiracy to defraud the United States and one count of theft of Government property. By pleading guilty, Hines admitted that from December 2012 to September 2013, he and others conspired to steal eight cargo containers full of U.S. goods from Camp Taji. Those containers were primarily filled with vehicle parts, machine parts, computers and communications equipment. According to court records, in January 2013, Iraqi officials in Baghdad recovered multiple cargo containers full of U.S. Government property while in the possession of two Iraqi citizens. It was determined that those containers were among eight unaccounted for containers from Camp Taji. Furthermore, investigators discovered that Hines agreed to sell the containers and their contents to the two Iraqi citizens for approximately $210,000.
On April 9, 2014, Judge Smith sentenced 34–year-old co-defendant David Rodriguez of Killeen, TX, to 27 months in federal prison for his role in the scheme. During the scheme, Rodriguez was a Department of Defense employee serving as the Director of Logistics at Camp Taji. Rodriguez admittedly helped arranged for the loading of the containers and their transportation off of Camp Taji.
The case resulted from an investigation by the United States Army Criminal Investigation Division (Army CID), Defense Criminal Investigative Service (DCIS) and the Special Inspector General for Iraq Reconstruction (SIGIR). The United States Air Force Office of Special Investigations (USAFOSI), Force Protection Detachment in Iraq assisted in this investigation. This case was prosecuted by Assistant United States Attorney Greg Gloff.
Former Rikers Island Correction Officer Sentenced to Five Years in Prison for Deliberately Ignoring Urgent Medical Needs of Inmate Who DiedRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TERRENCE PENDERGRASS, a former correction officer and captain, was sentenced today in federal court to five years in prison for deliberately ignoring the urgent medical needs of a Rikers Island inmate who had ingested a corrosive disinfectant and later died, in violation of the inmate’s rights under the United States Constitution. The sentence was imposed by U.S. District Judge Ronnie Abrams. PENDERGRASS was convicted of one count of deprivation of rights under color of law in Manhattan federal court on December 17, 2014, after a one-week trial.
U.S. Attorney Bharara said: “Even as we seek to reform and transform Rikers Island –and ensure an environment that protects the constitutional rights of its inmates – it is important that individuals who cruelly trample on those rights be held responsible. Terrence Pendergrass was the Captain on duty, responsible for the well-being of the inmates under his charge, but he stood deaf to Jason Echevarria’s pleas for help as he was succumbing to a toxic chemical, unwilling to help or let others help Echevarria, who died painfully, alone in his cell. Today’s sentence is an important step in our sustained efforts to change the culture on Rikers Island. The sentence is an appropriate punishment for Pendergrass’s crime. Pendergrass now himself will be an inmate and will expect, and be entitled to, better treatment than what he gave Mr. Echevarria.”
According to the Complaint, Indictment, evidence presented at trial, and information presented in connection with sentencing:
Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his death, Jason Echevarria was an inmate incarcerated on Rikers Island in the Mental Health Assessment Unit for Infracted Inmates (known as “MHAUII”), a unit housing inmates who had committed infractions while incarcerated and who were identified as needing mental health treatment.
On the afternoon of August 18, 2012, Echevarria swallowed a powerful disinfectant/detergent combination in powder form, commonly referred to as a “soap ball,” used to clean and disinfect cells. Echevarria had been given the soap ball by a new correction officer for the purpose of cleaning Echevarria’s cell following a sewage backup. The soap ball contained, among other things, ammonium chloride, a corrosive chemical that is life-threatening if ingested.
After Echevarria swallowed the soap ball, he began banging on his cell door and asking for help. Echevarria also told a correction officer that he had swallowed a soap ball and needed help. That correction officer in turn informed PENDERGRASS, the captain on duty at that time. As the captain on duty, PENDERGRASS was responsible for arranging for medical treatment for the inmates in his unit. Rather than arrange for that care, however, PENDERGRASS responded that the correction officer should only call on PENDERGRASS if he needed help with the extraction of an inmate from a cell or if there was a dead body. A short time later, the same correction officer told PENDERGRASS that he saw vomit in Echevarria’s cell, and PENDERGRASS responded that Echevarria should be told to “hold it.” Soon after, another correction officer told PENDERGRASS that Echevarria had swallowed a soap ball and that a pharmacy technician had told that officer that Echevarria needed a doctor. Despite what he had been told, and despite going to Echevarria’s cell himself after Echevarria had vomited, PENDERGRASS did not call for medical help. He also ordered an officer who was trying to call for help to hang up the phone.
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PENDERGRASS, 51, of Howard Beach, New York, was convicted after trial of one count of deprivation of rights under color of law. In addition to his prison term, PENDERGRASS was sentenced to one year supervised release, and fined $5,000. He was ordered to surrender by August 18, 2015.
United States Attorney Bharara praised the work of the Federal Bureau of Investigation, and expressed his appreciation for the assistance of the New York City Department of Correction, Investigation Division, the Bronx County District Attorney’s Office, and the New York City Department of Investigation in the investigation of this matter.
This case is being prosecuted jointly by the Office’s Civil Rights Unit and Public Corruption Unit. Assistant U.S. Attorneys Lara K. Eshkenazi and Daniel C. Richenthal are in charge of the prosecution.
Former Political Operative Sentenced to over 11 Years in Prison for Defrauding Louisiana Car DealershipsRead the Press Release
BATON ROUGE, LA – A previously convicted political operative was sentenced yesterday to over 11 years in prison for using his advertising firm to orchestrate a scheme to defraud car dealerships in southeast Louisiana out of over $1,200,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Walt Green of the Middle District of Louisiana, and Special Agent in Charge Jerome R. McDuffie of the New Orleans Field Office of IRS-Criminal Investigation (IRS-CI) made the announcement.
Raymond C. Reggie, 52, of Mandeville, Louisiana, pled guilty on October 27, 2014, to all five counts of a 2013 superseding indictment charging him with engaging in a wire fraud scheme to defraud various car dealerships in southeast Louisiana from September 2008 through July 2012. In addition to the prison sentence, U.S. District Court Judge Shelly D. Dick of the Middle District of Louisiana ordered Reggie to serve 2 years of supervised release following imprisonment and to pay more than $4.4 million in restitution and forfeiture, including $968,556 to the Supreme Automotive Group and $249,100 to Super Chevy Dealers of Baton Rouge, a local marketing group. Reggie was immediately remanded into custody following the sentencing.
According to government filings in the case, Reggie owned and operated Nexlevel Group, an advertising firm that assisted car dealerships in obtaining advertising from vendors in Southeast Louisiana. Reggie submitted fictitious advertising expenses for payment to the vendors by the dealerships, falsely representing that such expenses were actually incurred and should be paid to vendors. Once the dealerships issued the checks for the bogus expenses, Reggie deposited the checks into an account he controlled, diverting the funds to his personal use and enjoyment.
Reggie was previously convicted in November 2005 for scheming to defraud three banks in Louisiana in 1999 and 2000. In that case, he pled guilty in the Eastern District of Louisiana and was sentenced to one year in prison, followed by a term of supervised release.
U.S. Attorney Green stated: “The defendant earned every day of the sentence he received yesterday. He stood before the Court as a twice convicted federal felon and seemingly blamed everything and everyone for his wrongdoing, with the glaring exception of himself. Fortunately, justice was guided by the two things the defendant feared most – the law and the facts. I greatly appreciate the tremendous efforts of the prosecutors and agents who handled this important matter, as well as our excellent partnerships with IRS-CI and the Fraud Section.”
Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated: “We are pleased with today’s sentence. Mr. Reggie used his position and reputation in the business community to engage in a sophisticated fraud scheme for personal gain. IRS-CI and the U.S. Attorney’s office remain fully committed to prosecution of those who engage in illegal business practices. Today’s sentence should serve as a reminder that our agency will continue to investigate complex financial crimes and assist in the prosecution of those individuals who engage in such activities.”
This case was investigated by the New Orleans Field Office of IRS-CI. The case is being prosecuted by Assistant United States Attorneys Rene Salomon and Ryan Crosswell of the Middle District of Louisiana and Senior Litigation Counsel Jack Patrick of the Criminal Division’s Fraud Section.
Former Manager of Louisville Medical Office Charged with Health Care Fraud and Identity TheftRead the Press Release
LOUISVILLE, Ky. – Acting U.S. Attorney John E. Kuhn, Jr. today announced the indictment of a former medical office manager on charges of health care fraud and aggravated identity theft.
Kelly Lenning, age 44, of Jefferson County, Kentucky, was charged on June 17, 2015, in a six count federal indictment with scheming to defraud a health care benefit program, in connection with the delivery of and payment for health care benefits, items, and services.
Specifically, while manager of Injury Rehab Specialists of Lou., PLLC a medical practice that treated motor-vehicle-accident patients, Lenning is accused of unlawfully using former employees’ (nurse practitioners) DEA numbers to order controlled substance prescriptions, namely Hydrocodone by directing two individuals to fill Hydrocodone prescriptions between May and August of 2013. The individuals allegedly provided the filled Hydrocodone prescriptions to Lenning, for her own personal use, while she knew the individuals used Humana insurance, to pay for the unlawful prescriptions.
Further, Lenning is charged with using the identification of another person without lawful authority. Lenning is charged with identity theft of two nurse practitioners in relation to the health care fraud.
If convicted at trial, Lenning could be sentenced to no more than 36 years in prison, fined $1.5 million and a serve a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI) and Louisville Metro Police Department.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Little Rock Tax Preparer Sentenced to 46 Months for Preparation of Fraudulent Tax ReturnsRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office announced today that United States District Judge Kristine G. Baker sentenced former Little Rock tax preparer Christopher T. Craig, age 48, to 46 months in prison to be followed by one year of supervised release. Craig was also ordered to pay $1,092,177.79 in restitution to the IRS.
On August 25, 2014, Craig pleaded guilty to two counts of aiding and assisting in the preparation of fraudulent income tax returns. According to court documents, Craig, in his capacity as a paid return preparer, prepared false employment tax returns on behalf of other taxpayers for tax years 2010 and 2011. Unknown to the taxpayers, Craig filed the returns in a way that reduced the amount of taxes owed to the IRS by the taxpayers. Craig collected tax payments from the taxpayers for the correct amount of taxes and diverted to himself the difference between the correct amount owed and the amount paid to the IRS. As a result of Craig’s fraudulent conduct, which affected more than 50 victims, the total loss to the government was $1,092,177.79.
“Tax violations have been erroneously referred to as victimless crimes, but it’s the honest law-abiding citizen who is harmed when someone tries to manipulate our nation’s tax system,” Henry said. “The courts have overwhelmingly and consistently shown that you will be held accountable for such actions, and today’s sentencing is a costly reminder.”
This investigation was conducted by IRS Criminal Investigation.
Former Employee of Injury Rehab Specialist and Others Charged in A Conspiracy to Commit Health Care FraudRead the Press Release
Scheme included staging an accident to receive pain medications
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the indictment and arrest of three Louisville co-conspirators charged with a single count of health care fraud.
Cynthia Allen, age 27, Terry Cotton, age 36, and Terry Jenkins, age 36, are charged with conspiring with each other to recruit individuals to participate in a November 27, 2012, staged automobile accident, where one vehicle intentionally struck another vehicle. The object and purpose of the conspiracy was to obtain money and property under the custody and control of health care benefit programs, and to receive controlled substances.
In furtherance of the conspiracy, Allen directed staged, accident passenger participants to seek chiropractic treatment at the clinic at which she was employed. Allen and Cotton then directed passenger participants to seek pain management treatment, including receiving pain medication, at Injury Rehab Specialists of Lou., PLLC, where Allen subsequently became employed. As a result of these acts, among others, automobile insurance companies were billed for and paid for unnecessary treatment at the chiropractic clinic, Injury Rehab Specialists of Lou., PLLC, and other medical providers.
Further, Jenkins is charged with health care fraud for fraudulently submitting a settlement demand for $14,882.29 to Safe Auto Insurance Company for alleged injuries he sustained in a staged automobile accident, and receiving a settlement of $11,000.00.
Further, Terry Cotton is charged with unlawful distribution of a controlled substance. According to the indictment, between June 20, 2012, and continuing through January 17, 2014, Cotton and others, conspired with each other to knowingly and intentionally distribute and dispense, a mixture and substance containing a detectable amount of Hydrocodone, a schedule III controlled substance.
If convicted at trial, the defendants could be sentenced to no more than 20 years in prison, and 3 years of supervised release and fined $500,000.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Louisville Metro Police Department and the FBI.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former DeKalb Detention Officer Charged with Using Excessive Force on County InmatesRead the Press Release
Hamilton Allegedly Tased Inmates Without Justification and Wrote False Reports to Cover Up Abuse
Dwight Hamilton, 51, of Atlanta, Georgia, a former sergeant with the DeKalb County Sheriff's Office, was arraigned today on charges of using excessive force against inmates at the DeKalb County Jail and for writing false reports about the incidents, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney John Horn of the Northern District of Georgia and Special Agent in Charge Britt Johnson of the Federal Bureau of Investigation (FBI).
According to the indictment and other information presented in court, Hamilton worked as a supervisory officer at the DeKalb County jail from 2005 to 2012, where, on two separate dates in January 2012, he used his taser multiple times on inmates without justification. The indictment charges that in both instances, Hamilton’s use of excessive force violated the inmates’ constitutional rights and resulted in bodily injury. The indictment also alleges that, following each of the tasing incidents, Hamilton wrote a false report with the intent to impede an investigation.
Hamilton was arraigned before Magistrate Judge Janet F. King.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI and is being prosecuted by Trial Attorney Christopher Perras of the Civil Rights Division and Assistant U.S. Attorney Brent Alan Gray.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016.
Former Corrections Officer Gets 20 Year Prison Sentence for Violent Home Invasion RobberyRead the Press Release
PHILADELPHIA - Tyreek Styles, 27, of Philadelphia, PA, was sentenced today to 20 years in prison for his role in a conspiracy to commit home invasion robberies. At the time of the crimes, Styles was working as a correctional officer at Curran Fromhold Prison. On September 26, 2014, a federal jury found Styles guilty of conspiracy, Hobbs Acts robbery, and using and carrying a firearm during a crime of violence.
On December 3, 2011, Styles and his co-defendants, Tyrone Styles and Jeramiah Stokes, committed the violent home invasion robbery of the owner of an Upper Darby business. The defendants waited for the owner home to come home and brutally assaulted him in the front yard. They made their way into the home at gunpoint, and forced the business owner=s family to give them money, some of which were business proceeds. Defendant Tyrone Styles fired the gun as the three defendants fled the scene.
In addition to the prison term, U.S. District Court Judge Petrese Tucker ordered three years of supervised release and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Upper Darby Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry and Thomas Zaleski.
Former Catholic Priest SentencedRead the Press Release
SAN JUAN, Puerto Rico – Israel Berríos-Berríos, a former Catholic priest, was sentenced today to 11 years in prison for transporting a minor with the intent to engage criminal sexual conduct, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Berríos-Berríos pled guilty on August 21, 2014.
According to the government’s version of facts, from on or about July 21, 2008, through on or about July 25, 2008, the defendant did knowingly transport an individual, who had not attained the age of 18 years, in interstate and foreign commerce, with the intent to engage in any sexual activity for which a person could be charged with a criminal offense. According to the Government’s version of facts, the defendant did transport a then 15 year-old male minor identified as “John Doe” to the City of Miami, Florida, where together they took a four-day cruise to the Bahamas. While on the cruise the defendant engaged in lewd acts with John Doe, in violation of Title 18, USC, Section 2423(a).
“The USAO for the District of Puerto Rico is committed to taking full advantage of our investigative tools in order to protect our children from sexual predators,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “We commend our team of prosecutors and investigators who worked tirelessly in this case and today achieved this sentence. The public should be reminded to report all inappropriate behavior with children to their local authorities and together, local and federal law enforcement, will see that justice is carried out.”
The case was prosecuted by Assistant U.S. Attorney Marshal D. Morgan, Coordinator of the Project Safe Childhood initiative, and Assistant U.S. Attorney Elba Gorbea.
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.
Florida Lobster Divers & Company Sentenced for Illegal Harvesting ActivitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, Sean Morton, Superintendent of the Florida Keys National Marine Sanctuary (FKNMS), and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service (FWS), Miami, announced that Charles Veach, 39, of Coppitt Key, Ryan Veach, 41, formerly of Bay Point, and Tyson Veach, 36, of Stock Island, were sentenced yesterday before Senior U.S. District Judge James Lawrence King.
Charles Veach, Ryan Veach, and Tyson Veach were each sentenced to serve a term of imprisonment of six months, followed by a one year period of supervised release. Additionally, the Court ordered the forfeiture the fishing vessel used in the offense, including its engines, tackle, and appurtenances as instrumentalities of the crimes. Each of the three defendants was also sentenced to pay a $25,000 fine.
Each defendant was sentenced based on their prior guilty pleas to the offense of knowingly transporting, selling, receiving, acquiring, and purchasing lobster violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(2) and Title 18, United States Code, Section 2. Additionally, the corporate entity operated by the defendants, Super Grouper, Inc., was sentenced based on its previous conviction for knowingly engaging and attempting to engage in conduct that involved the offer, sale and intent to purchase spiny lobster in interstate commerce in violation of the laws and regulations of the State of Florida, specifically, Florida Administrative Code, Sections 68B-24.006(10), all in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4), and 3373(d)(1)(B), and Title 18, United States Code, Section 2.
According to court documents and information, Charles Veach was the President and Director of Super Grouper, Inc., and the company was the registered owner of the fishing vessel, the “SUPER GROUPER.”
On August 10, 2009, Charles and Ryan Veach operated the vessel and harvested lobster in the FKNMS. During that voyage, aircraft operated by the Florida Fish & Wildlife Conservation Commission (FWCC) videotaped their diving activities. NOAA Special Agents documented the vessel return to Charles Veach’s home, where a significant amount of spiny lobsters were unloaded and subsequently sold to a wholesale dealer in Key West.
On August 15, 2014, the Super Grouper, operated by Charles and Tyson Veach, was located in the FKNMS by Customs and Border Protection (CBP) aircraft. FWS agents subsequently documented multiple locations where a diver deployed from the Super Grouper and CBP video captured spiny lobster harvesting activities on board the Super Grouper. NOAA Special Agents later witnessed the landing and sale of a part of the harvest at Stock Island to a wholesale dealer. An additional sale was made to a Key West dealer.
On August 19, 2014, NOAA Special Agents observed Charles and Tyson Veach aboard the Super Grouper harvesting lobsters in the FKNMS. During that trip, CBP documented multiple locations at which Tyson Veach engaged in diving activities. A later survey of the locations by the FWS Region 4 Dive Team verified the presence of illegal “casitas,” or artificial habitats, at the sites. Charles and Tyson Veach later landed the vessel and sold the spiny lobsters at a wholesaler dealer in Stock Island.
Creating or harvesting from “casitas,” or artificial habitat, is illegal under state and federal law. As part of their agreement to cooperate, the defendants surrendered a list of all their illegal harvesting sites to the Government, and were required to remove all the sites at their own expense from federal and State waters, prior to sentencing. The defendants were also required to surrender their various lobster and dive endorsements to the State of Florida.
Mr. Ferrer commended the joint investigative efforts of the Special Agents of the NOAA Office of Law Enforcement, and the FWS who led the long-term investigation into the illegal harvesting and sale of spiny lobster known as Operation Quick Peek. Mr. Ferrer also thanked Customs and Border Protection Office of Air & Marine, the FWCC, the crew of the Patrol Vessel Peter Gladding, and the FWS Region 4 Dive Team who also assisted in the investigative effort. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonio Barnes.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Men Now Charged in Connection with the Armed Robbery of Two Grocery Stores in CahokiaRead the Press Release
A Federal Grand Jury sitting in East St. Louis has indicted Byron "Josh" Holton, 26, LaMarcus D. Jackson, 28, and Undray C. Webb, 25, with Conspiracy to Interfere with Commerce by Robbery and Interference with Commerce by Robbery, which are both violations of the Hobbs Act, and with Use and Carry of a Firearm During a Crime of Violence in connection with the armed robbery of the Alps Grocery Store that occurred in Cahokia, Illinois on December 11, 2014, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today. These charges are in addition to the charges Holton, Jackson and Webb were already facing for the January 11, 2015 armed robbery of the Shop ‘n Save in Cahokia. On February 19, 2015, a Federal Grand Jury indicted Holton, Jackson and Webb, along with two others, Durand Harper, 26, and Devante Hodges, 22, for Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery, and Use and Carry of a Firearm During a Crime of Violence in connection with the Shop ‘n Save armed robbery.
Documents filed in the U.S. District Court allege that on December 11, 2014, Holton, Jackson and Webb entered the Alps Grocery Store, located at 800 Upper Cahokia Road, in Cahokia, Illinois, masked and armed with three firearms. Holton, Jackson and Webb pointed the firearms at the store employees and demanded money. Holton, Jackson and Webb all took money from two registers and a safe located within the office and fled the store.
The documents further allege that on January 11, 2015, Holton, Jackson, Webb, and Hodges entered the Shop ‘n Save, located at 1028 Camp Jackson Road in Cahokia, Illinois, masked, gloved and armed with four firearms. Holton, Jackson, Webb, and Hodges pointed the firearms at employees and customers within the store. Holton jumped the service counter and demanded the employees place money from the safe into a black book bag while Jackson, Webb and Hodges stood guard at the door with their firearms. Holton, Jackson, Webb and Hodges then left the store and fled the area in a vehicle being driven by Harper.
If convicted of any of the Hobbs Act violations, the defendants all face a term in prison of up to 20 years on each count, a fine of up to $250,000, or both, and a term of supervised release of up to 3 years. If convicted of the offense of Use of a Firearm During a Crime of Violence in connection with the armed robbery of the Shop ‘n Save, all five defendants face a minimum term in prison of 7 years up to a maximum term of Life, consecutive to, meaning in addition to, any term of imprisonment imposed on the Hobbs Act violations, as well as a fine of up to $250,000 and a term of supervised release of up to 5 years. Additionally, if Holton, Jackson and Webb are convicted of a second offense of Use of a Firearm During a Crime of Violence in connection with the armed robbery of Alps Grocery Store, the three face a minimum term in prison of 25 years up to a maximum of Life, consecutive to the term of imprisonment imposed on all other counts of conviction.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The case is being investigated by the Cahokia Police Department, the Sauget Police Department and the Federal Bureau of Investigation as part of the Metro East Armed Robbery Initiative. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Federal, state authorities disrupt Pennsylvania to West Virginia heroin trafficking networkRead the Press Release
WHEELING, WEST VIRGINIA – Multiple individuals were arrested today in connection with a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, and Marshall County Prosecuting Attorney Rhonda Wade announced.
Christopher T. Gyorko, 30, of Pittsburgh, Pennsylvania, is alleged to have orchestrated and managed a drug trafficking operation in which quantities of heroin were transported across state lines from Pittsburgh, Pennsylvania into Ohio and Marshall Counties in West Virginia, as well as locations in the state of Ohio, for redistribution and sale. Gyorko has been named in an 18-count federal indictment, along with Jeff R. Andlinger, 34, of Benwood, West Virginia, John D. McKee, 30, Joseph P. McKee, 25, Doug Nolte, 35, and George L. LaShare, 34, all of Wheeling.
Additionally, George N. Sidiropolis, 35, of McMechen, West Virginia, was charged in a one-count federal Information with “Conspiracy to Distribute Heroin.”
All six defendants named in the indictment are charged with “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” They each face up to 20 years in prison and a fine of up to $1,000,000.Andlinger is further charged with: • Three counts of “Use of a Telephone to Facilitate the Distribution of Heroin.” He faces up to four years in prison and a fine of up to $250,000 on each count, • One count of “Aiding and Abetting the Distribution of Heroin Within 1,000 Feet of a Protected Location,” for which he faces between one and forty years in prison and a fine of up to $2,000,000, • One count of “Distribution of Heroin Within 1,000 Feet of a Protected Location,” for which he faces between one and forty years in prison and a fine of up to $2,000,000, and
• One count of “Distribution of Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.
Nolte is further charged with: • Two counts of “Use of a Telephone to Facilitate the Distribution of Heroin.” He faces up to four years in prison and a fine of up to $250,000 on each count, • Two counts of “Distribution of Heroin Within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000 on each count, and
• One count of “Distribution of Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.
LaShare is further charged with: • Three counts of “Use of a Telephone to Facilitate the Distribution of Heroin.” He faces up to four years in prison and a fine of up to $250,000 on each count, • Two counts of “Aiding and Abetting the Distribution of Heroin Within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000 on each count, and
• One count of “Aiding and Abetting the Distribution of Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.
McKee is further charged with: • Two counts of “Aiding and Abetting the Distribution of Heroin Within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000 on each count, and
• One count of “Aiding and Abetting the Distribution of Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.
The following individuals have been charged in state court in connection with the heroin trafficking operation: • Jonathan M. Novick, 24, of Glendale, West Virginia faces one count of “Delivery of a Controlled Substance – Heroin,” and one count of “Conspiracy to Distribute a Controlled Substance,”
• William A. Novick, 33, of McMechen, West Virginia, faces one count of “Delivery of a Controlled Substance – Heroin,” and one count of “Conspiracy to Distribute a Controlled Substance,”
• Madelyn A. Dziorney, 21, of Moundsville, West Virginia, faces one count of “Delivery of a Controlled Substance – Heroin,”
• Rosa I. Ruskin, 21, of Moundsville, West Virginia, faces one count of “Delivery of a Controlled Substance – Heroin,”
• Steven E. Holmes, 25, of Cameron, West Virginia, faces three counts of “Conspiracy to Distribute a Controlled Substance,” and three counts of “Delivery of a Controlled Substance – Heroin,” and
• Terry P. Davis, 33, of McMechen, West Virginia was previously charged with one count of “Introduction of a Controlled Substance into a Regional Jail – Heroin,” and “Possession of a Controlled Substance with Intent to Distribute – Heroin.”Assistant U.S. Attorney Stephen Vogrin is prosecuting the defendants charged in federal court. Marshall County Prosecuting Attorney Rhonda Wade is prosecuting the defendants charged in state court. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, is leading the Investigation. The Task Force is comprised of officers and agents from the Marshall County Sheriff’s Office, Moundsville Police Department, the West Virginia State Police, and the Drug Enforcement Administration.
The federal and state charges announced today are merely accusations, and all defendants are presumed innocent unless and until proven guilty.
Federal Racketeering Indictment Targets Mexican Mafia-Orchestrated Coalition of Three Latino Street Gangs in Northeast Los AngelesRead the Press Release
LOS ANGELES – Federal, state and local authorities this morning arrested 15 defendants named in a federal racketeering indictment that describes the development and implementation of a coalition of three criminal street gangs in the Northeast Los Angeles area that were brought together under a truce ordered by a Mexican Mafia member for the purpose of controlling criminal activity in the neighborhoods where the trio of gangs operated
Unlike previous federal racketeering cases in this region that targeted long-established street gangs, the indictment that was returned yesterday by a federal grand jury outlines how Mexican Mafia member Arnold Gonzales created a criminal enterprise by unifying three gangs that had traditionally been rivals. According to the 27-count indictment, the “peace treaty” imposed by Arnold Gonzales brought together the Frogtown, Toonerville and Rascals gangs, which then worked “in concert to control the narcotics trafficking and other illicit activities committed in their territories,” which run along the Los Angeles River from Elysian Park nearly to Burbank.
The indictment alleges a conspiracy to violate the Racketeer-Influenced and Corrupt Organizations Act (RICO) and accuses a total of 22 defendants of being “members and associates of a criminal organization engaged in, amongst other things, conspiracy to traffic in narcotics, narcotics trafficking, extortion, and crimes of violence, including conspiracy to commit murder, murder, attempted murder, and robbery.”
Exploiting a power vacuum created by previous federal RICO cases targeting Northeast Los Angeles gangs and the Mexican Mafia members who controlled them, Arnold Gonzales allegedly assumed control of the three street gangs in the fall of 2010. Because he was incarcerated in Pelican Bay State Prison after being convicted of murder, Arnold Gonzales anointed another Frogtown member – Jorge Grey, also known as “Bouncer” – to be his emissary on the streets, according to the indictment. Acting as the so-called shotcaller, Grey convened a meeting of representatives of Northeast Los Angeles gangs in September 2010. At this meeting, Grey informed the gang representatives that he was Arnold Gonzales’s “mouthpiece” and that he had orders to broker a truce among the rival gangs of Frogtown, Toonerville, and the Rascals so that they could work together to control illegal activities in the area on behalf of, and for the benefit of, Arnold Gonzales.
The investigation showed that nearly two years after its formation, the criminal organization had achieved its goal of unifying the three longstanding rival gangs into a single criminal enterprise. Less than two years after Arnold Gonzales imposed the truce on the gangs, one of the Toonerville shot-callers, Manuel Vallejo, was talking about the “United Nations,” “New World Order” and “United Neighborhoods,” which he said was the “game plan.” Just a few months ago, Vallejo was boasting about the execution of that “game plan,” noting that he was part of something that had ended more than 50 years of fighting between Frogtown, Toonerville and the Rascals.
“For the past two decades, federal authorities have been fighting the influence of the Mexican Mafia both inside prison facilities and on the streets of Southern California,” said Assistant United States Attorney Robert Dugdale, Chief of the office’s Criminal Division. “We sought to ensure that being a shotcaller in such a gang is a job whose only reward will be many, many years in federal custody. The indictment announced today is the latest salvo in this battle, and we will continue our crackdown on criminal organizations like the Mexican Mafia and street gangs that do its bidding as long as they threaten our communities.”
The RICO indictment targeting the Arnold Gonzales Organization is the result of Operation “Gig ‘em,” which was a 2½-year investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Violent Crime Impact Team; the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit; the Glendale Police Department; and the Los Angeles Police Department.
This morning, authorities arrested 14 of the defendants named in the RICO indictment. Four other defendants were already in custody, and law enforcement continues to search for three defendants, including Grey. (Two other individuals named in separate one-defendant, one-count drug trafficking indictments were also arrested this morning.)
ATF Special Agent in Charge Carlos A. Canino said, “Many of these defendants are previously convicted felons. We will continue to send the message, continued engagement in gang violence and violent crime has no place in our community.”
The investigation centered on Arnold Gonzales taking control of the three gangs; exercising his authority through Grey and his criminal associates; and generating revenue through extortion, specifically the imposition of taxes on the gangs and others who distributed narcotics in the territory controlled by the criminal enterprise. Members of the racketeering conspiracy allegedly implemented the orders of Arnold Gonzales, imposed discipline on those who attempted to violate the orders or contest the power of the enterprise, and collected firearms that were used to enforce their authority. The indictment details numerous transactions involving narcotics and firearms, and also contains charges related to two shootings, one allegedly perpetrated by Vallejo against a fellow Toonerville gang member whom he believed was attempting to wrest control of the enterprise, and another shooting of a neighborhood drug dealer ordered by Grey due to his failure to pay “taxes” to Arnold Gonzales.
“There is a path of lives ruined, and families devastated by the violence, extortion, and addictions that were created by this gang alliance,” said Bill Kunz, Special Agent in Charge, California Department of Corrections and Rehabilitation, Office of Correctional Safety. “So, those who join with the Mexican mafia should be on notice: law enforcement is also banded together. We will track you down, and take you down.”
Glendale Police Chief Chief Rob Castro stated, “The Glendale Police Department recognizes that gang crimes have no borders and the City of Glendale is not immune to the impact of gang violence. Our participation in a multi-jurisdictional operation such as this ensures the safety of our community.”
Members of the organization also implemented plans to expand operations into the greater Lancaster, California area, where they hoped to engage in drug trafficking and collect “taxes” on behalf of, and for the benefit, of Arnold Gonzales.
As part of the scheme, several participants in the enterprise allegedly deposited money into Arnold Gonzales’s prison account, with one individual depositing over $133,000 on her own.
The indictment alleges that Grey and other members of the enterprise engaged in narcotics and weapons transactions at Homeboy Industries, and one defendant allegedly planned to use Homeboy Industries as an “alibi” if he was accused of associating with other gang members in violation of a gang injunction.
In addition to the RICO charge in the indictment, various defendants are charged with narcotics and weapons offenses, including, in one instance, the possession of a machinegun.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If they are convicted of charges contained in the indictment, all of the defendants would face potential sentences of decades in federal prison.
Release No. 15-062