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1 May 2015
10-Count Indictment Unsealed Charging Eight Individuals with Conspiracy to Distribute, Possession of Synthetic CannabinoidsRead the Press Release
SALT LAKE CITY – A federal indictment unsealed Thursday afternoon charges eight individuals with conspiracy to distribute XLR-11, a synthetic cannabinoid commonly known as spice; possession of spice with intent to distribute; and conspiracy to commit money laundering. The indictment was returned by a grand jury Wednesday afternoon.
Charged in the indictment are Issa Haig Babikyan, age 51, of Carlsbad, Calif.; Michael Suliman Haig Babikyan, age 25, of Murray; Fahad Ali Khalil, age 24, of Murray; Ammar Ibrahim Alobaidi, age 35, of Midvale; Yaser Saeed Majeed Al-Najjar, age 46, of Murray; Joseph Lara Paez, age 39, of Fresno, Calif.; Tiffany Nicole Velo, age 32, of Fresno; and Hanan Saeed, age 43, of Salt Lake City.
The case is being investigated by two FBI task forces, the Safe Streets Task Force and the Wasatch Range Task Force. Member agencies involved in the task forces are the FBI, Salt Lake City, West Valley City, West Jordan and Sandy City police departments; the Utah Highway Patrol, the Utah Department of Public Safety, the Utah Department of Corrections; and the Unified Police Department.
The first count of the indictment charges seven defendants with conspiracy to distribute spice from at least Jan. 31, 2015, through April 29, 2015. Counts two through nine charge various defendants in the case with possession of spice with intent to distribute. Count 10 of the indictment charges Khalil and Saeed with conspiracy to commit money laundering, alleging they conducted transactions involving the proceeds of a specified unlawful activity and that the transactions were designed to conceal and disguise the nature, location, source, ownership, and control of the proceeds of the unlawful activity.
Spice is a mixture of herbs and spices that is typically sprayed with a synthetic compound similar to THC, the psychoactive ingredients in marijuana, according to a DEA Drug Fact Sheet. However, spice is commonly more potent than organic marijuana and the dose can be irregular due to a lack of quality control in the manufacturing process. Spice is commonly purchased in; tobacco shops, various retail outlets, and over the Internet. It is often marketed as incense or “fake weed.” Purchasing over the Internet or from a smoke shop can be dangerous because it is not usually known where the products come from or what amount of chemical is on the organic material.
Issa Haig Babikyan and Michael Suliman Haig Babikyan were arrested Thursday in California and had initial appearances in federal court. Khalil, Alobaidi, Al-Najjar, Velo and Seed were arrested in Utah and will have initial appearances Friday at 1 p.m. in U.S. Magistrate Judge Brooke C. Wells’ courtroom. Paez remains a fugitive in California.
Several firearms, vehicles, and cash were seized during the execution of the arrest warrants Thursday. Approximately 2,000 pounds of spice were seized during a two-month period of the investigation.
The potential maximum penalty for each of the nine drug counts alleged in the indictment is 20 years and a $1 million fine. Conspiracy to commit money laundering carries a potential 20 year prison sentence. The fine for the money laundering count is up to $500,000 or two times the dollar amount of the property involved in the alleged money laundering transaction.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
30 April 2015
Yuba City Police Officer and Resident Indicted on Cocaine Conspiracy and Bribery ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Gursharan Phagura, 39, and Harminder Phagura, 35, both residents of Yuba City, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gursharan Phagura and Harminder are accused of conspiring to possess, with intent to distribute, cocaine, as well as accepting and facilitating bribes. The indictment alleges that Harminder Phagura used his authority as a police officer to gather sensitive information, which Gursharan Phagura transmitted to a third party, who was posing as a cocaine trafficker.
Gursharan Phagura is charged separately with possessing, with intent to distribute, cocaine in 2011.
Harminder Phagura and Gursharan Phagura were arrested on April 15, 2015. Harminder Phagura was released on a $100,000 bond. Gursharan Phagura is in pretrial custody.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The Federal Bureau of Investigation also provided resources to the investigation. The Yuba City Police Department has assisted in the investigation. Assistant United States Attorney Paul Hemesath is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Wolcott Man Sentenced to Prison for Participating in Two Criminal SchemesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL MONTEIRO, 36, of Wolcott, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 13 months of imprisonment, followed by three years of supervised release, for participating in two separate criminal conspiracies.
On March 20, 2013, MONTEIRO pleaded guilty to one count of conspiracy to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws. In pleading guilty to this charge, MONTEIRO admitted that participated in a scheme to conceal from the public the true origin of contributions that Roll-Your-Own (“RYO”) smoke shop owners were making to the Chris Donovan for Congress campaign during the 2012 election cycle. During the campaign, MONTEIRO agreed to serve as a conduit for a $2,500 campaign contribution by writing a check in that amount to the campaign and then accepting $2,500 in cash in return. MONTEIRO knew that the purpose of the contributions was to obtain a commitment from Chris Donovan, who at the time was also the Speaker of the Connecticut House of Representatives, to defeat legislation that would strip RYO cigarettes of their tax exempt status. He also understood that the conduit nature of the contribution would prevent the public from drawing a connection between the true source of the contributions and the ultimate failure of any harmful legislation. MONTEIRO further understood that the RYO smoke shop owners had made several additional contributions through other conduits, including his brother and an employee.
On May 21, 2013, MONTEIRO pleaded guilty to one count of conspiracy to commit bank fraud, wire fraud, and money laundering. In pleading guilty to this charge, MONTEIRO admitted that from May to September 2007, he helped recruit two straw borrowers to purchase a total of five houses from co-defendant Filippos Milios, the head of an extensive mortgage fraud conspiracy. MONTEIRO referred these borrowers to Milios knowing that they would not be making down payments on their purchases or living in them as primary residences. Milios used money obtained from the mortgages to pay private lenders. MONTEIRO collected approximately $15,000 in referral fees from Milios, and knew that the fees paid to him were not being disclosed to lenders. Lenders suffered a loss of approximately $783,000 as a result of the five fraudulent transactions in which MONTEIRO was a participant.
MONTEIRO was ordered to forfeit $15,000 and pay restitution in the amount of $783,000.
On January 6, 2015, Milios was sentenced to 97 months of imprisonment for orchestrating the mortgage fraud scheme that involved more than 50 properties and resulted in nearly $5.7 million in losses to lenders.
The conduit campaign contribution conspiracy was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Christopher M. Mattei. The mortgage fraud conspiracy was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.
Wentzville Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – JAMES STALEY pled guilty to charges involving his scheme to defraud investors by making false promises of high rates of return and minimal risk. With his plea, Staley admitted to defrauding sixteen investors/lenders by causing them to invest over $3.3 million, giving him commissions totaling over $570,000.
According to court documents, in 2007, James Staley operated Wealth Financial International. That same year, he became a sales agent for a Premium Financing Company located in California known as B & B Equity. As a sales agent, Staley found individuals to provide loans for life insurance policies. In many instances, several of these investor/lender’s funds were bundled together to provide financing to purchase one life insurance policy. Staley received a commission for each investor/lender that he found to contribute financing for the purchasing of the life insurance policies. B & B required the lender/investor to invest in the insurance policy for a fixed period of time, varying from 18 months to two years. During this period of time, Staley represented to clients of Wealth Financial that B & B Premium Financing Company would sell the bundled insurance policies on the open market with guaranteed returns. However, Staley was well aware that if B & B was unable to secure a buyer for the bundled insurance policies that his clients would lose all their monies invested in the Premium Financing product sold by B & B.
Staley, Wentzville, MO, pled guilty to four felony counts of wire fraud before United States District Judge E. Richard Webber. Sentencing has been set for July 29, 2015.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Michael Spurgeon, 46, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly manufacturing marijuana. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 2/10/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Gary Franklin, 46, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly and intentionally receiving, possessing, concealing, selling, or disposing of stolen vehicles that had crossed state lines after being stolen. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 2/12/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Richard Maxson, 26, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly and intentionally receiving, possessing, concealing, selling, or disposing of stolen vehicles that had crossed state lines after being stolen. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 2/12/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Tad Vandermark, 52, of Syracuse, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of production of child pornography. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has been set for 2/6/2014.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Paul Page, 49, of Indianapolis, Indiana, a defendant in the case US V Bales et al., was sentenced by District Judge Robert L. Miller Jr to 2 years’ probation and to pay $10,000 in fines after pleading guilty to the felony offense of scheming to commit wire fraud.According to documents filed in this case, Page devised a scheme to defraud a bank.When Page learned he needed to make a significant down payment to get a mortgage on a building he intended to buy and rent out to the State of Indiana, another person loaned him the money. Mr. Page promised to repay the loan out of the proceeds when he sold the building. Page knew that banks would require a disclosure of competing loans on a piece of property, and knew how to avoid disclosing this information to the bank. Page “spun” the ownership issue with the bank, and then signed false documents and false certifications.Page failed to inform the bank that a third party had loaned him the down payment in papers Page completed for the mortgage loan. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Thomas Touhey, 56, of Walkerton, Indiana was sentenced by District Judge Robert L. Miller, Jr. to 20 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of unlawful transport of firearms.According to documents filed in this case, law enforcement was investigating complaints of drug trafficking from Touhey’s home as well as two active warrants for Touhey’s failure to register as a sex offender. Officers discovered marijuana and related paraphernalia.Officers also found a loaded shotgun on the premises. Touhey has a prior felony conviction for child molestation. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Webster Parish man sentenced to more than 15 years in prison for child pornography distributionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Minden man was sentenced to 188 months in prison for distributing child pornography.
Michael A. Webb, 26, of Minden, La., was sentenced on Wednesday by United States District Judge S. Maurice Hicks, Jr., on one count of distribution of child pornography. He was also sentenced to serve five years of supervised release. According to evidence presented at the January 21, 2015, guilty plea, Webb responded to a social network online profile for a 13-year-old girl. He sent the girl child pornography, sexually explicit images of himself and arranged to meet the girl in Springhill, La. The online profile for the girl was fake, and Webb actually was communicating with an undercover police officer. Webb was arrested on August 8, 2014 while at work.
The FBI, Webster Parish Sheriff’s Office and the Springhill Police Department investigated the case. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
U.S. Attorney Polite Appointed to AG’s Advisory CommitteeRead the Press Release
Today, Attorney General Loretta E. Lynch announced the appointment of Kenneth A. Polite, U.S. Attorney for the Eastern District of Louisiana, along with five other U.S. Attorneys, to the Attorney General’s Advisory Committee (AGAC).
Created in 1973, the AGAC represents the voice of the 93 U.S. Attorneys across the nation and reports to the Attorney General through the Deputy Attorney General. It provides advice and counsel to the Attorney General and other senior leaders in the U.S. Department of Justice on policy, management and operational issues, helping to shape policies to accomplish the Department’s core mission of serving justice.
“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch. “They help introduce new ideas, formulate innovative policies, and design fresh strategies. They foster collaboration across our U.S. Attorney’s Offices and with Main Justice. And, in all of their work, they seek to strengthen and improve law enforcement efforts at every level. As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”
Two Sacramento Area Methamphetamine Trafficking Cases Indicted TodayRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two separate indictments today charging a total of six defendants with methamphetamine trafficking offenses, United States Attorney Benjamin B. Wagner announced.
In the first case, Jose Acosta, 34, Jorge Rios, 39, Jose Luis Aguilar, 49, Diego Velazquez, 29, and Feliciano Ochoa Reyes, 30, all Mexican nationals, were charged with conspiring to traffic methamphetamine and use of a communications facility (cellular telephone) in furtherance of a drug trafficking crime. According to court documents, between September 10, 2014, and April 16, 2015, the defendants were engaged in conspiracy to traffic methamphetamine in and around the Sacramento area. Docket # 2:15-cr-092 JAM
In the second case, Alex Velasquez Rangel, of Sacramento, was charged with distribution of methamphetamine between February 12, 2014, and April 22, 2014. Docket # 2:15-cr-093 GEB
Both cases were the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Christiaan Highsmith is prosecuting both cases.
All defendants have been detained pending trial. If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $1 million fine on the conspiracy charge and four years in prison and a $250,000 fine on the use of a communications facility in a furtherance of a drug trafficking offense charge. 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; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Two Phelps County People Sentenced on Methamphetamine ChargesRead the Press Release
St. Louis, MO – Two Edgar Springs people have been sentenced involving their methamphetamine distribution activities in March 2014 in Phelps County.
RANDY E. KARNES was sentenced today to 72 months in prison; SHANTELLE M. LIBHART was sentenced last week to 84 months in prison. They appeared in St. Louis before United States District Judge E. Richard Webber.
This case was investigated by the South Central Drug Task Force.
Three Warrensburg Residents Among Six to Plead Guilty to Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six defendants have pleaded guilty in federal court for their roles in a conspiracy to distribute methamphetamine and to illegally possessing a firearm.
Phuoc Hong, also known as Tony Hong, 32, of Warrensburg, pleaded guilty before U.S. District Judge Stephen R. Bough on Wednesday, April 29, 2015, to participating in a conspiracy to distribute methamphetamine from December 2013 to May 2014.
Co-defendants Garrett D. Statler, 21, and Alyce M. Maher, 27, both of Warrensburg, Mo.; Dylan K. Avery, 19, of Clinton, Mo.; and Arturo-Lorenzo Roldan, 34, of Independence, Mo., have also pleaded guilty earlier this month to their roles in the drug-trafficking conspiracy. Co-defendant Tony D. Meyer, 42, of Sedalia, Mo., recently pleaded guilty to being a felon in possession of a firearm.
Hong admitted that he sold methamphetamine from his Warrensburg residence and from other locations. During the investigation, an undercover agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives purchased methamphetamine from Hong on 11 occasions and purchased cocaine or crack cocaine from Hong on four occasions.
Hong purchased his methamphetamine from Roldan and purchased his cocaine from a different source. Roldan admitted that he sold Hong approximately one to ounces of methamphetamine per week, later increasing to two to three ounces per week. Hong also supplied methamphetamine to Meyer, Statler, Avery and Maher, who then supplied others.
The investigation resulted in the purchase or seizure of a total of 424.6 grams of methamphetamine, 68.3 grams of cocaine and 65.7 grams of crack cocaine. In addition to the methamphetamine actually purchased from Hong, it is believed that he is responsible for at least another pound of methamphetamine that he sold to Meyer.
Law enforcement officers conducted a search of Roldan’s residence and seized 88.5 grams of methamphetamine and $12,000 that came from the sale of a pound of methamphetamine to another individual. Based on this, Roldan is responsible for approximately 1.65 kilograms of methamphetamine (an estimated two ounces a week for five months (1120 grams), 88.5 grams found during the search and a pound sale (448 grams) represented by the $12,000).
Meyer admitted that he was in possession of a Hi-Point 9mm pistol when his vehicle was stopped by Kansas City, Mo., police officers on Jan. 18, 2014. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Meyer has two prior felony convictions for assaulting a law enforcement officer, four prior felony convictions for possession of a controlled substance, two prior felony convictions for distributing a controlled substance, and prior felony convictions for trafficking in drugs, possessing drug paraphernalia, robbery, assault, and leaving the scene of an accident.
Under federal statutes, Hong and Roldan are each subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10 million. Meyer is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $250,000. Statler is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. Avery and Maher are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million.
Sentencing hearings have been scheduled for Aug. 27 and 28, 2015.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Warrensburg, Mo., Police Department, the Johnson County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Knob Noster, Mo., Police Department, the Sedalia, Mo., Police Department, the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Three Senior Executives of For-Profit Schools Plead Guilty in Manhattan Federal Court to Participating in Student Visa and Financial Aid Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SURESH HIRANANDANEY, LALIT CHABRIA, and ANITA CHABRIA, three senior executives of privately owned for-profit schools, pled guilty yesterday in Manhattan federal court to criminal conspiracy charges for their involvement in student visa fraud and financial aid fraud schemes. Specifically, the defendants each pled guilty to one count of conspiracy to commit student visa fraud and one count of conspiracy to commit student financial aid fraud, agreed to forfeit $7,440,000 of proceeds of the student visa fraud conspiracy to the United States Government, and agreed to pay $1,000,000 in restitution to the United States Department of Education (“ED”) for losses from the student financial aid fraud conspiracy. The defendants were arrested in May 2014, along with co-defendants Samir Hiranandaney and Seema Shah, following a long-term investigation by the United States Immigration and Customs Enforcement’s Homeland Security Investigations (“ICE-HSI”), the United States Department of State’s Diplomatic Security Service (“DOS-DSS”), and ED’s Office of the Inspector General (“ED-OIG”). SURESH HIRANANDANEY, LALIT CHABRIA, and ANITA CHABRIA entered their guilty pleas yesterday before United States District Judge J. Paul Oetken.
Manhattan U.S. Attorney Bharara stated: “Suresh Hiranandaney, Lalit Chabria, and Anita Chabira turned their for-profit schools into instruments of fraud to exploit our nation’s foreign student visa and domestic student financial aid programs for their own personal financial gain. Education fraud remains a high-priority focus of ours and we will prosecute all those who make a self-serving sham out of education.”
According to the Indictment filed in this case, the Complaint previously unsealed in this case, and other statements made at public court proceedings, including yesterday’s guilty pleas:
Each of the defendants who pled guilty yesterday was associated with the Micropower Career Institute (“MCI”), a for-profit school with five campuses in New York and New Jersey, or the Institute for Health Education (“IHE”), a for-profit school located in New Jersey. SURESH HIRANANDANEY was MCI’s President; his brother-in-law, LALIT CHABRIA, was MCI’s Vice President and IHE’s President; and his sister, ANITA CHABRIA, was MCI’s Vice President.
Foreign citizens are granted F-1 student visas to remain in the United States as long as they are pursuing full courses of study at approved schools. If a student fails to attend classes as required, the school is required to inform immigration authorities so that the authorities may terminate that student’s visa. SURESH HIRANANDANEY, LALIT CHABRIA, and ANITA CHABRIA failed to report to immigration authorities that foreign citizens were not attending classes at MCI and IHE as required.
The defendants and others fraudulently portrayed MCI and IHE to immigration authorities as legitimate institutes of higher learning where foreign students carried full course loads. In reality, the majority of foreign students at MCI and IHE did not attend the required number of classes. SURESH HIRANANDANEY, LALIT CHABRIA, and ANITA CHABRIA failed to report this to immigration authorities as required, while MCI and IHE continued to collect millions of dollars in tuition from foreign students with delinquent attendance. When a campus of MCI came under regulatory scrutiny, the defendants and others transferred foreign students with delinquent attendance to affiliated schools (such as another MCI campus or IHE) that were not under scrutiny.
In another scheme, SURESH HIRANANDANEY, LALIT CHABRIA, ANITA CHABRIA, and others falsified documents in student financial aid files at MCI in order to hide MCI’s failure to timely return financial aid funds received by MCI for domestic students who had dropped out of MCI. In violation of federal laws and regulations governing the administration of financial aid payments to eligible low-income students, MCI failed to return to ED substantial sums of financial aid funds that ED had disbursed to MCI for domestic students who dropped out of MCI without an authorized leave of absence. Specifically, the defendants and others falsified student files by altering documents in the files, or in some cases creating entirely fabricated documents, to conceal MCI’s failure to return such funds to ED and ensure that ED would not terminate MCI’s eligibility for future financial aid funds.
SURESH HIRANANDANEY, 61, LALIT CHABRIA, 54, and ANITA CHABRIA 50, each pled guilty to one count of conspiracy to commit student visa fraud and one count of conspiracy to commit student financial aid fraud, agreed to pay $7,440,000 of proceeds of the student visa fraud conspiracy in forfeiture to the U.S. Government, and agreed to pay $1,000,000 in restitution to ED for losses from the student financial aid fraud conspiracy. Each count carries a maximum of five years in prison. The defendants’ sentencing date is scheduled for September 10, 2015. The penalties described here are prescribed by Congress and provided for informational purposes only, as any sentence imposed on each of these defendants will be determined by Judge Oetken.
The remaining defendants, Samir Hiranandaney, 28, and Seema Shah, 42, face pending criminal conspiracy charges that are contained in the Indictment in this case. The charges against Samir Hiranandaney and Seema Shah are merely accusations and these defendants are presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Bharara praised ICE-HSI, DOS-DSS, and ED-OIG for their work in the investigation this case.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorneys Samson Enzer and Margaret Graham are in charge of the prosecution. Assistant United States Attorney Andrew Adams is in charge of the forfeiture aspects of the case.
Three Defendants Sentenced for Their Involvement in Extensive Tax Refund Fraud SchemeRead the Press Release
Three defendants were sentenced by U.S. District Judge Joan A. Lenard for their involvement in an extensive tax refund fraud scheme. Vory V. Copeland, of Miramar, was sentenced to 111 months in prison, followed by 3 years of supervised release, and ordered to pay joint and several restitution in the amount of $911,539. Marlan L. Copeland, of Miramar, was sentenced to 72 months in prison, followed by three years of supervised release. Brannoc K. Rudd, of Miami Gardens, was sentenced to 60 months in prison, followed by 3 years of supervised release. The three defendants were held jointly and severally liable for restitution. Vory Copeland was ordered to pay restitution in the amount of $911,539. Marlan Copeland and Brannoc Rudd were each ordered to pay restitution in the amount of $285,834.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
After a seven-day trial, a federal jury convicted Vory Copeland of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
After a separate ten-day trial, a federal jury convicted Marlan Copeland and Brannoc Rudd of one count of conspiracy, in violation of Title 18, United States Code, Section 371. Marlan Copeland was also convicted of five counts of theft of government property, in violation of Title 18, United States Code, Section 641, and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Evidence presented at the trials revealed that between January 2010 and April 2010, Vory Copeland and his co-conspirators filed over 150 fraudulent tax returns, including tax returns that included stolen personal identification information. The co-conspirators then cashed many of the fraudulently obtained tax refund checks at a Wachovia Bank in Miami Gardens, Florida. Marlan Copeland and Rudd brought more than twenty checks into the bank, each check reflecting a tax refund issued by the U.S. Department of the Treasury. At the bank, Marlan Copeland and Rudd cashed the checks and fraudulently obtained more than $100,000.00. Although each check had been purportedly signed by the taxpayer, at trial the taxpayers identified the signatures at forgeries.
During the trials, individual victims whose personal identification information had been compromised testified that they had not authorized the defendants to file the fraudulent tax returns or cash the resulting tax refund checks.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys John Gonsoulin and John Byrne.
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.
Thirteen Current and Former Law Enforcement Officers and Two Others Indicted for their Alleged Participation in a Drug Trafficking ConspiracyRead the Press Release
Thirteen current and former law enforcement officers and two other individuals have been indicted and arrested for allegedly protecting narcotics shipments and cash proceeds during transit along the east coast for what they believed was a large-scale drug trafficking organization that was actually an undercover operation by the FBI.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division made the announcement.
“Corruption in local government – especially involving law enforcement – threatens the social compact that binds our communities together,” said Assistant Attorney General Caldwell. “When the officer with a gun and a badge is no different from the trafficker peddling drugs in the street, we all suffer. That is why the Criminal Division of the Department of Justice and our law enforcement partners in North Carolina and throughout the country are determined to root out corruption, wherever and in whatever form it may be found.”
“The actions by these individuals are particularly troubling due to their current and past affiliation with law enforcement,” said U.S. Attorney Walker. “Their alleged conduct was reprehensible and my office will not tolerate this kind of corruption in our district. I am grateful for the outstanding work of the FBI Special Agents who investigated this case.”
“They vowed to protect and serve, but instead these deputies and correctional officers sold their badges and used their law enforcement positions to line their own pockets,” said Special Agent in Charge Strong. “Public corruption at any level is the number one criminal priority of the FBI and we will work aggressively to protect the public trust.”
The following individuals were indicted in the Eastern District of North Carolina and arrested today in a coordinated operation by the FBI:
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Lann Tjuan Clanton, 36, a correctional officer with the Virginia Department of Corrections;
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Ikeisha Jacobs, 32, a deputy with the Northampton County Sheriff’s Office;
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Jason Boone, 29, a deputy with the Northampton County Sheriff’s Office;
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Wardie Vincent Jr., 35, formerly of the Northampton County Sheriff’s Office;
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Adrienne Moody, 39, a correctional officer with the North Carolina Department of Public Safety;
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Cory Jackson, 43, formerly of the Northampton County Sheriff’s Office;
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Jimmy Pair Jr., 48, a deputy with the Northampton County Sheriff’s Office;
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Curtis Boone, 31, a deputy with the Northampton County Sheriff’s Office;
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Antonio Tillmon, 31, a police officer with the Windsor City Police Department;
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Alaina Kamling, 27, a correctional officer with the North Carolina Department of Public Safety;
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Kavon Phillips, 25, a correctional officer with the North Carolina Department of Public Safety;
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Crystal Pierce, 31, of Raleigh, North Carolina;
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Alphonso Ponton, 42, a correctional officer with the Virginia Department of Corrections;
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Thomas Jefferson Allen II, 37, a deputy with the Northampton County Sheriff’s Office; and
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Tosha Dailey, 31, a 911 dispatch operator for Northampton County.
All 15 defendants are charged with conspiring to distribute controlled substances and conspiring to use and carry firearms during and in relation to drug trafficking offenses. Other charges against certain defendants include attempted extortion, attempted possession with intent to distribute controlled substances, money laundering, federal programs bribery and use and carry of firearms during and in relation to crimes of violence and drug trafficking offenses.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Charlotte Division, Raleigh Resident Agency and the North Carolina Department of Public Safety, with assistance from the Halifax County Sheriff’s Office. The case is being prosecuted by Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Brian S. Meyers of the Eastern District of North Carolina.
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Thirteen Current and Former Law Enforcement Officers and Two Others Indicted for Their Alleged Participation in A Drug Trafficking ConspiracyRead the Press Release
WASHINGTON – Thirteen current and former law enforcement officers and two other individuals have been indicted and arrested for allegedly protecting narcotics shipments and cash proceeds during transit along the east coast for what they believed was a large-scale drug trafficking organization that was actually an undercover operation by the FBI.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division made the announcement.
“Corruption in local government – especially involving law enforcement – threatens the social compact that binds our communities together,” said Assistant Attorney General Caldwell. “When the officer with a gun and a badge is no different from the trafficker peddling drugs in the street, we all suffer. That is why the Criminal Division of the Department of Justice and our law enforcement partners in North Carolina and throughout the country are determined to root out corruption, wherever and in whatever form it may be found.”
“The actions by these individuals are particularly troubling due to their current and past affiliation with law enforcement,” said U.S. Attorney Walker. “Their alleged conduct was reprehensible and my office will not tolerate this kind of corruption in our district. I am grateful for the outstanding work of the FBI Special Agents who investigated this case.”
“They vowed to protect and serve, but instead these deputies and correctional officers sold their badges and used their law enforcement positions to line their own pockets,” said Special Agent in Charge Strong. “Public corruption at any level is the number one criminal priority of the FBI and we will work aggressively to protect the public trust.”
The following individuals were indicted in the Eastern District of North Carolina and arrested today in a coordinated operation by the FBI:
- Lann Tjuan Clanton, 36, a correctional officer with the Virginia Department of Corrections;
- Ikeisha Jacobs, 32, a deputy with the Northampton County Sheriff’s Office;
- Jason Boone, 29, a deputy with the Northampton County Sheriff’s Office;
- Wardie Vincent Jr., 35, formerly of the Northampton County Sheriff’s Office;
- Adrienne Moody, 39, a correctional officer with the North Carolina Department of Public Safety;
- Cory Jackson, 43, formerly of the Northampton County Sheriff’s Office;
- Jimmy Pair Jr., 48, a deputy with the Northampton County Sheriff’s Office;
- Curtis Boone, 31, a deputy with the Northampton County Sheriff’s Office;
- Antonio Tillmon, 31, a police officer with the Windsor City Police Department;
- Alaina Sue Kamling, 27, a correctional officer with the North Carolina Department of Public Safety;
- Kavon Phillips, 25, a correctional officer with the North Carolina Department of Public Safety;
- Crystal Pierce, 31, of Raleigh, North Carolina;
- Alphonso Ponton, 42, a correctional officer with the Virginia Department of Corrections;
- Thomas Jefferson Allen II, 37, a deputy with the Northampton County Sheriff’s Office; and
- Tosha Dailey, 31, a 911 dispatch operator for Northampton County.
All 15 defendants are charged with conspiring to distribute controlled substances and conspiring to use and carry firearms during and in relation to drug trafficking offenses. Other charges against certain defendants include attempted extortion, attempted possession with intent to distribute controlled substances, money laundering, federal programs bribery and use and carry of firearms during and in relation to crimes of violence and drug trafficking offenses.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Charlotte Division, Raleigh Resident Agency and the North Carolina Department of Public Safety, with assistance from the Halifax County Sheriff’s Office. The case is being prosecuted by Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Brian S. Meyers of the Eastern District of North Carolina.
Texas man sentenced to 20 years in prison for methamphetamine distribution conspiracyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Texas man was sentenced to 240 months in prison for conspiring to sell methamphetamine in the Winn Parish area.
Alwyn Nord Stewart Jr., 35, of Houston, Texas, was sentenced by U.S. District Judge Donald E. Walter on one count of conspiracy to distribute methamphetamine. He was also sentenced to five years of supervised release. According to evidence presented at the January 12, 2015, guilty plea, Alwyn Stewart, David Lamont Mangum, 38, and Altomio Kente Phillips, 29, both of Winnfield, and Demetrius Marie Jackson, 31, of Deridder, La., conspired to distribute methamphetamine transported from Houston to the Winnfield area from the beginning of 2011 until September 2012. Stewart was the supplier of methamphetamine to Mangum. Stewart and Mangum would arrange transport of the drugs to Louisiana, and other co-conspirators assisted with the delivery and distribution.
The other conspirators were sentenced on January 27, 2015. Mangum was sentenced to 204 months in prison for the conspiracy count and for one count of possession of a firearm in relation to drug trafficking. He was also sentenced to 10 years of supervised release. Phillips was sentenced to 90 months in prison and 5 years of supervised release for one count of possession with intent to distribute methamphetamine. Jackson was sentenced to one day in prison and five years of supervised release for one count of possession with intent to distribute methamphetamine. Stewart and the other conspirators forfeited the property seized during the case, which includes $29,067 in cash, two plots of land in Winnfield, seven vehicles, and other seized items.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation named “Trend Setters.” The DEA conducted the investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt and dismantle these organizations and to seize their assets.
Assistant U.S. Attorneys James G. Cowles Jr., Brandon B. Brown and Joseph G. Jarzabek prosecuted the case.
Ten Chinese Nationals Charged with Violating Court Orders to Remain in U.S. as Witnesses for ‘Maternity House’ InvestigationsRead the Press Release
A Total of 11 who Fled U.S. Face Charges that include Obstruction of Justice, Lying on Visa Applications, and Violating ‘Material Witness’ Court Orders
SANTA ANA, California – Ten Chinese nationals who fled the United States earlier this month were charged today with violating federal court orders to remain in the country during investigations into “Chinese maternity houses” that allegedly helped women come to the U.S. on fraudulent visas so they could give birth to children who would become U.S. citizens.
Criminal complaints filed in United States District Court this afternoon accuse 10 of the defendants with obstruction of justice and contempt of court for leaving the United States after being ordered to remain in the country and provide information in an investigation into businesses that allegedly helped mainly Chinese women come to the U.S. to give birth.
In addition to the charges related to the alleged violations of the court orders designating them as material witnesses, 10 of the defendants are also charged with making false statements on visa applications for allegedly lying to federal immigration authorities about the true purpose of their trips to the United States.
An eleventh defendant who had not been formally ordered to remain in the United States as a material witness is charged only with visa fraud.
All but one of the defendants were customers of Chinese maternity house operations in Southern California who paid up to $50,000 to obtain temporary visitor’s visas for authorization to travel to the United States by fraudulently claiming their stay was only for several days, according to court documents.
Ten of the defendants are among 29 individuals who were designated by United States Magistrate Judges as material witnesses after they were encountered by federal law enforcement authorities who executed 37 federal search warrants in March across Orange, Los Angeles, and San Bernardino counties. As detailed in the affidavits in support of those search warrants, federal agents are investigating multiple Chinese maternity operations in Southern California for suspected immigration fraud and tax fraud, as well as failing to report foreign bank accounts in China and Hong Kong.
Federal arrest warrants have been issued for all 11 defendants named in the criminal complaints filed today. All but one of the defendants are charged with obstruction of justice and criminal contempt of court, and 10 of them are also charged with making a false statement on a visa application.
The defendants charged today are:
Dongjiang He (贺东江), 46, who last resided in Rancho Cucamonga, allegedly fled with his wife on April 16. On his visa application, Dongjiang He listed his occupation as “Government” and his position as “Project Manager and Secretary General” for the China Nonferrous Metals Techno Economic Research Institute, which is located in the Haidian District in Beijing.
He’s wife, Zhichan Yu (余芝婵), 40, who last resided in Rancho Cucamonga, is a graduate of the Beijing University of Chinese Medicine who allegedly made a false statement on her visa application when she listed that she would be visiting Hawaii for only 15 days, when she actually intended to be in Southern California for several months and give birth.
Jun Xiao (肖俊), 30, and LongJing Yi (易珑静), 30, who last resided in Irvine, allegedly fled on April 4. According to the affidavit in support of the criminal complaint against them, Xiao and Yi made false statements on their visa applications, namely that they would be staying in the United States for only 15 days. Moreover, Xiao and Yi paid only $4,600 of the $32,291 in hospital charges from Yi’s giving birth at an area hospital, according to court documents. In this case, Yi is charged only with visa fraud as she had not yet appeared before a judge in relation to the government’s application to have her designated as a material witness.
Jia Luo (罗佳), 30, who last resided in Rancho Cucamonga, allegedly fled on April 12. According to the affidavit written by a special agent with IRS - Criminal Investigation in support of the criminal complaint against Luo, Luo lied on her visa application and lied to U.S. customs officers in Hawaii when asked her if she was planning on having a baby in the United States.
Renlong Chen (陈人龙), 34, and his wife Wei Wang (王伟), 33, who last resided in Rancho Cucamonga, allegedly fled on April 12. Chen and Wang are accused of making false statements on their visa applications by stating they would be visiting the United States for only eight days, when they actually made arrangements to stay at a Chinese maternity house for three months so that Wang could give birth in the United States.
Jie He (何洁), 29, who last resided in Rancho Cucamonga, allegedly fled on April 13. Jie He allegedly made false statements on her visa application, including that she planned to stay in the United States for only 20 days, when she actually entered into a contract to pay approximately $50,000 to obtain a visa and stay in the United States for several months to give birth. According to the affidavit in this case, Jie He told investigators that she flew into Las Vegas, rather than Los Angeles, because the Chinese maternity operator had advised her that it was easier to enter through Las Vegas, according to an affidavit in the case.
Eryun Zhang (张尔芸), 25; her husband, Liang Ni (倪梁), 25; and her mother, Ji Xu (徐激), 50, who last resided in Rancho Cucamonga, allegedly fled on April 14. According to the criminal complaint, Ni admitted that during an interview conducted at the U.S. Consulate in China, he falsely stated that the purpose of their trip was for their honeymoon, rather than the true reason, which was for Zhang to give birth in the United States. Xu is charged with violating the court’s order to remain in the U.S., but she is not charged with visa fraud.
All of the defendants are fugitives and are believe to be in China at this time.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted, the defendants face statutory maximum sentences of 25 years in federal prison for the charge of false statement on a visa application and five years in federal prison for the charge of obstruction of justice. There is no maximum penalty for the charge of criminal contempt of court.
These cases are the product of a joint investigation conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS - Criminal Investigation.
Release No. 15-040
Sumter Man Sentenced in Federal Court on Drug ChargesRead the Press Release
Contact Person: William Witherspoon (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Kevin Lamont Loney, age 38, of Sumter County, South Carolina was sentenced today in federal court in Columbia, South Carolina, for possession with the intent to distribute 28 grams or more of crack cocaine, 500 grams or more of cocaine and a quantity of marijuana, a violation of 21 U.S.C. §§ 841(a) (1) 841(b) (B) and 841(b)(1)(D). Senior United States District Judge Margaret B. Seymour of Columbia sentenced Loney to 300 months imprisonment (25 years) followed by 8 years of supervised release and a special assessment of $100.
Evidence presented at the change of plea hearing established that a search warrant was executed at Loney’s residence. The search warrant was based upon the purchase of half a kilogram of cocaine from Loney by the police. Based upon this purchase and other information, the officers obtained the search warrant for Loney’s home. During the search, they found more than 500 grams of cocaine, 96 grams of crack cocaine and 20 kilograms of marijuana in Loney’s home. Loney was arrested.
The case was investigated by agents of the Drug Enforcement Administration Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and Sumter County Sheriff's Department. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
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Statement by Acting Assistant Attorney General Leslie Overton on Court's Remedy to Address American Express's Antitrust ViolationRead the Press Release
Acting Assistant Attorney General Leslie Overton of the Department of Justice’s Antitrust Division provided the following statement today after the U.S. District Court of the Eastern District of New York issued an order regarding a remedy to address American Express’s illegal conduct:
“We are pleased that the court has ordered American Express to eliminate its illegal anti-steering rules. These rules have stifled competition among credit card networks by blocking merchants from encouraging their customers to use particular credit cards. The court’s remedy will benefit merchants, who pay more than $50 billion in credit card ‘swipe fees’ annually, as well as the consumers who ultimately bear these costs. Merchants’ ability to encourage the use of particular credit card networks will incentivize American Express and its competitors to compete to earn a greater share of a merchant’s business. The court’s order reinforces the victory the department has won for consumers.”
The court’s order prohibits American Express from adopting rules or entering contracts that block merchants from encouraging their customers to use a particular credit card. Under the order, merchants must be permitted to: offer discounts for the use of particular cards; express a preference for particular cards; disclose to customers the cost merchants incur when the customer uses particular credit cards; and engage in other conduct to encourage use of favored credit cards. The order also requires American Express to: repeal any rules that block merchant steering; notify merchants of their freedom to engage in steering activities; and adopt compliance measures to ensure that its employees understand that they cannot continue to block steering by merchants that accept American Express cards.
The U.S. Department of Justice and 17 state attorneys general sued American Express, Visa Inc. and MasterCard International Inc., in 2010 to eliminate restrictions that the three credit card networks imposed on merchants. The civil case, brought under Section 1 of the Sherman Antitrust Act, sought to end the violation and to restore competition.
Settlements with Visa and MasterCard were filed at the same time the case against American Express was begun; the settlements, like the court’s order concerning American Express’s conduct, prohibit Visa and MasterCard from continuing their rules and practices that had obstructed competition. The court approved the settlements on July 20, 2011, and they applied immediately to Visa and MasterCard. American Express was not a party to the settlements, and the litigation against American Express continued.
Over the course of a seven week trial during the summer of 2014, the department presented evidence that these restrictions obstruct merchants from using competition to try to keep credit card fees from increasing.
On Feb. 19, 2015, Judge Nicholas G. Garaufis of the Eastern District of New York issued a decision finding that American Express violated Section 1 of the Sherman Act. The court also entered a scheduling order instructing the parties to submit, within 30 days, a joint proposed remedial order. Today’s order follows the parties’ briefing concerning the proposed remedy.
Amex Remedy Opinion
Amex Injunction Order
St. Petersburg Drug Trafficker Sentenced to PrisonRead the Press Release
Tampa, Florida– U.S. District Judge Steven D. Merryday has sentenced Altwan L. Holloway (36, St. Petersburg) to 17 years and six months in federal prison for conspiring with others to possess with intent to distribute five kilograms or more of cocaine. He pleaded guilty on December 9, 2014.
According to court documents, Holloway and others were involved in a years-long drug conspiracy that was responsible for the distribution of at least 149 kilograms of cocaine in St. Petersburg, Florida. Additionally, a search of a St. Petersburg residence used as a “stash house” by this drug trafficking organization for narcotics and money revealed digital scales, mixing agents, containers with cocaine residue, and a “kilo” press. Agents also located 850 grams of cocaine and $71,930 inside the stash house.
This case was investigated by the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
This case was prosecuted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) “Operation High Cargo.” 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.
St. Louis Man Pleads Guilty to Fraud and Arson ChargesRead the Press Release
April 30, 2015
St. Louis, MO – MARDELL McGEE pled guilty to charges relating to an insurance fraud scheme which included burning a residential property in the City of St. Louis.
According to court documents, McGee owned numerous businesses involved in real estate, whose activities included buying, rehabbing, selling and renting residential properties in the St. Louis area. In 2009, McGee bought a house in the City of St. Louis for $10,000, using one of his business names. In 2010, McGee borrowed money against the property, and in 2011 he claimed to have sold it for $100,000 to a woman. The woman, however, was the mother of his child. McGee provided the financing for the purported sale using another business known as Nationwide Lending Services. The buyer obtained a homeowner’s insurance policy from State Farm that covered the property in the event of a fire. In the early morning hours of February 27, 2012, McGee set a fire in the property. The owner was not home at the time, and McGee was observed by the St. Louis Metropolitan Police Department in the vicinity at the time of the fire. McGee was involved in the insurance claim, and in October 2012, a check for $88,265 was sent to the owner of the property. That check was used to pay an insurance adjuster, leaving about $80,265 in proceeds. The adjuster gave McGee and the owner a check for $80,265, which was payable to the owner and Nationwide Lending. On that same day, McGee opened an account in the name of Nationwide Lending Services and deposited the entire $80,265 into the new account.
McGee, St. Louis, Missouri, pled guilty to one felony count of mail fraud and one felony count of arson in furtherance of mail fraud. He appeared before United States District Judge Henry Autrey. Sentencing has been set for August 3, 2015.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. The arson count carries a ten-year mandatory sentence consecutive to the mail fraud sentence. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service, St. Louis County Police Department, St. Metropolitan Police Department and the U.S. Secret Service. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney's Office.
St. Francis Man Receives 18 Months for Making False Statement to Federal AgencyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Making False Statement to Federal Agency was sentenced on April 27, 2015, by U.S. District Judge Roberto A. Lange.
Luke Two Eagle, age 20, was sentenced to 18 months in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Two Eagle was indicted for Sexual Abuse of a Minor and Making False Statement to Federal Agency by a federal grand jury on July 15, 2014. He pled guilty to Making False Statement to Federal Agency on November 24, 2015.
On May 1, 2014, a Federal Bureau of Investigation (FBI) Special Agent went to Two Eagle’s house, looking for the minor who had ran away from her custodian and started living with Two Eagle. While the agent was at Two Eagle’s house, Two Eagle lied about the minor’s whereabouts and said she had packed up her belongings and left his house about a week prior. Thereafter, the agent searched for the minor and found her hiding inside a utility room behind a laundry machine. The agent removed the runaway minor from the home and re-interviewed Two Eagle, who acknowledged he had made false statements to the agent.
This case was investigated by the FBI and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Two Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Springhill woman sentenced to 60 months in prison for possession with intent to distribute methRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Webster Parish woman was sentenced to 60 months in prison for possessing methamphetamine with intent to distribute at a Springhill retail store.
Reiny L. Ratliff, 22, of Springhill, La., was sentenced on Wednesday by United States District Judge S. Maurice Hicks, Jr., on one count of possession with intent to distribute methamphetamine. She was also sentenced to five years of supervised release. According to evidence presented at the January 15, 2015, guilty plea, Springhill Police responded on March 12, 2014, to a complaint that someone was illegally parked in a handicapped spot at a local retail store. While questioning Ratliff, the officer saw drug paraphernalia in the car, arrested her, and impounded the vehicle. A search of her purse revealed 229.7 grams of methamphetamine, a pair of brass knuckles, and $5,347 in cash.
The DEA and Springhill Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles, Jr. prosecuted the case.
Springfield Men Indicted on Charges of Computer Hacking, Wire Fraud, and Identity TheftRead the Press Release
ALEXANDRIA, Va. – Twin brothers Muneeb and Sohaib Akhter, 23, of Springfield, Virginia, were indicted by a federal grand jury today on charges of aggravated identity theft, conspiracy to commit wire fraud, conspiracy to access a protected computer without authorization, access of a protected computer without authorization, conspiracy to access a government computer without authorization, false statements, and obstruction of justice.
According to the indictment, beginning in or about March 2014, the Akhter brothers and coconspirators hacked into the website of a cosmetics company and stole its customers’ credit card and personal information. They used the stolen information to purchase goods and services, including flights, hotel reservations, and attendance at professional conferences. In addition, the brothers and coconspirators devised a scheme to hack into computer systems at the U.S. Department of State to access network traffic and to obtain passport information.
Muneeb Akhter faces a maximum penalty of 59 years in prison if convicted on all counts, and Sohaib Akhter faces a maximum penalty of 39 years in prison if convicted on all counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Gregory Marshall, Chief Security Officer, Department of Homeland Security (DHS); Gregory Starr, Assistant Secretary for the U.S. Department of State’s Bureau of Diplomatic Security; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the indictment was returned.
This case was investigated by the Internal Security and Investigations Division of the Office of the Chief Security Officer, DHS Headquarters; the U.S. Department of State’s Bureau of Diplomatic Security, and FBI’s Washington Field Office. Special Assistant U.S. Attorneys John Taddei and Jennifer Clarke are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-124.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Six New Members Appointed to Attorney General’s Advisory CommitteeRead the Press Release
Attorney General Loretta E. Lynch announced today the appointment of six new members to the Attorney General’s Advisory Committee. The following appointments became effective April 29, 2015:
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U.S. Attorney Deirdre Daly for the District of Connecticut;
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U.S. Attorney Steven Dettelbach for the Northern District of Ohio;
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U.S. Attorney Conner Eldridge for the Western District of Arkansas;
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U.S. Attorney Paul Fishman for the District of New Jersey;
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U.S. Attorney Booth Goodwin II for the Southern District of West Virginia; and
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U.S. Attorney Kenneth Polite for the Eastern District of Louisiana.
“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch. “They help introduce new ideas, formulate innovative policies, and design fresh strategies. They foster collaboration across our U.S. Attorney’s Offices and with Main Justice. And, in all of their work, they seek to strengthen and improve law enforcement efforts at every level. As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”
Attorney General Lynch also thanked U.S. Attorney Ronald Sharpe for the District of the Virgin Islands for serving on the Attorney General’s Advisory Committee for the past two years.
A brief bio on each new appointee is below:
Deirdre Daly was presidentially appointed and sworn in as the U.S. Attorney for the District of Connecticut on May 28, 2014. Daly previously served as the U.S. Attorney in an acting or interim capacity since May 14, 2013. Between July 2010 and May 2013, she was the First Assistant U.S. Attorney during which time she assisted in the oversight of both the Criminal and Civil Divisions. From 1985 to 1997, Daly was an Assistant U.S. Attorney in the Southern District of New York, where she prosecuted a wide range of cases from racketeering and murder to corruption and fraud and later served as the Assistant-In-Charge of White Plains Office for three years. After leaving the Justice Department, Daly was a partner at Daly & Pavlis LLC, a Connecticut law firm with a practice focused on corporate and commercial litigation, white-collar criminal investigations, SEC enforcement actions and corporate internal investigations and monitoring.
Steven Dettelbach was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Ohio in September 2009. Dettelbach previously served for over 12 years as a career federal prosecutor. During those years, he worked at the Department of Justice, Civil Rights Division, Criminal Section, U.S. Attorneys Offices in Maryland and Washington, D.C. and from 2003 to 2006 in the Northern District of Ohio, as a member of the Organized Crime and Corruption Strike Force. Dettelbach also was detailed to serve as Counsel for the U.S. Senate Committee on the Judiciary from 2001 to 2003. Formerly, Dettelbach was a partner at the law firm of Baker & Hostetler LLP.
Conner Eldridge was presidentially appointed and sworn in as the U.S. Attorney for the Western District of Arkansas on December 21, 2010. Eldridge is the youngest U.S. Attorney in the country. Eldridge serves as co-chair of the Domestic Terrorism Executive Committee, which is composed of twenty law enforcement agencies and Department of Justice components and works to increase collaboration in addressing the threat of Domestic Terrorism. While serving as U.S. Attorney, Eldridge has tried five cases to jury verdict. He previously served as a Deputy Prosecuting Attorney in Arkadelphia (Clark County), Arkansas, as Counsel and, later, Chief Executive Officer of Summit Bank, a community bank then serving central and southwest Arkansas, also in Arkadelphia, as a clerk to federal District Judge G. Thomas Eisele and as a legislative assistant to former U.S. Senator Blanche Lincoln and former U.S. Congressman Marion Berry, both of Arkansas.
Paul Fishman was presidentially appointed and sworn in as the U.S. Attorney for the District of New Jersey on October 14, 2009. Fishman previously served as a member of the Attorney General's Advisory Committee of U.S. Attorney's (AGAC) from 2009-2013. He served as Vice-Chair of the AGAC from 2009-2011 and Chair from 2011-2012. After graduating from law school, he clerked for the Honorable Edward R. Becker of the U.S. Court of Appeals for the Third Circuit. He was an Assistant U.S. Attorney from 1983 to 1994. From 1994 to 1997, he was a senior adviser to the Attorney General and Deputy Attorney General of the U.S. on a variety of law enforcement, policy, legislative, national security and international matters, as well as on specific investigations and prosecutions. In addition to his public service, from 1998 - 2009 Fishman was a partner in the law firm of Friedman Kaplan Seiler & Adelman.
Booth Goodwin II was presidentially appointed and sworn in as U.S. Attorney for the Southern District of West Virginia on May 27, 2010. From January 2001 until he was sworn in as U.S. Attorney, Goodwin was an Assistant U.S. Attorney for the Southern District of West Virginia. Prior to that, Goodwin practiced for five years with the Charleston law firm of Goodwin & Goodwin, LLP where he engaged in commercial and personal injury litigation, closed multi-million dollar bond transactions, filed reports with the U.S. Securities and Exchange Commission and handled numerous commercial and residential real estate transactions.
Kenneth Polite was presidentially appointed and sworn in as U.S. Attorney for the Eastern District of Louisiana on September 20, 2013. Polite currently serves as a member of the AGAC's Violent and Organized Crime Subcommittee and Smart on Crime Working Group. Prior to becoming U.S. Attorney, Polite was a shareholder at Liskow & Lewis, where he headed the white collar criminal defense group and served as the Firm's hiring partner. From 2007 to 2010, Polite served as an Assistant U.S. Attorney for the Southern District of New York. There, he prosecuted a wide range of federal criminal offenses, including organized crime, public corruption, narcotics and firearms trafficking, money laundering and identity theft. Polite was an associate at Skadden, Arps, Slate, Meagher & Flom LLP, first in the Delaware office's corporate litigation practice from 2000 to 2001, and later, in the New York office's white collar criminal defense group from 2002 to 2006.
The Attorney General’s Advisory Committee will now include the following individuals:
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U.S. Attorney John F. Walsh for District of Colorado, Chair;
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U.S. Attorney Richard S. Hartunian for the Northern District of New York, Vice Chair;
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U.S. Attorney Michael W. Cotter for the District of Montana;
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U.S. Attorney Deirdre Daly for the District of Connecticut;
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U.S. Attorney Thomas E. Delahanty, II for the District of Maine;
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U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio;
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U.S. Attorney Conner Eldridge for the Western District of Arkansas;
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U.S. Attorney Zachary T. Fardon for the Northern District of Illinois;
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U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida;
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U.S. Attorney Paul J. Fishman for the District of New Jersey;
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U.S. Attorney R. Booth Goodwin II for the Southern District of West Virginia;
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U.S. Attorney Barry R. Grissom for the District of Kansas;
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U.S. Attorney Kerry B. Harvey for the Eastern District of Kentucky;
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U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan;
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U.S. Attorney Zane D. Memeger for the Eastern District of Pennsylvania;
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U.S. Attorney Wendy J. Olson for the District of Idaho;
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U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana;
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U.S. Attorney Vincent Cohen, Jr. for the District of Columbia, ex officio
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Criminal Chief Thomas Eicher for District of New Jersey, ex officio
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Appellate Chief Sandra Glover for District of Connecticut, ex officio; and
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Civil Chief Thomas Walsh for the Northern District of Illinois, ex officio
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.
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Sitka Couple Indicted and Arraigned in Federal Court on Drug Conspiracy and Firearms ChargesRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that Luke Roderick Lowe, 36, and Marguarite Jean Keicher, 38, of Sitka, Alaska, were indicted by a federal grand jury in Anchorage on April 21, 2015, on drug conspiracy and firearms offenses that occurred in Ketchikan, Alaska. Keicher was arraigned on April 24, 2015, in U.S. District Court in Juneau and Lowe was arraigned yesterday in U.S. District Court in Ketchikan before Chief Magistrate Judge Deborah M. Smith.
According to the indictment, Lowe and Keicher conspired with each other and others to distribute and to possess with the intent to distribute methamphetamine in Ketchikan, Alaska, between December 19, 2014, and January 27, 2015. The indictment further alleges that Lowe and Keicher knowingly and intentionally possessed, used, and carried several firearms in furtherance of the underlying drug trafficking crime. The United States is also seeking forfeiture of $1,524 in U.S. Currency and nine firearms in two separate forfeiture allegations.
Assistant U.S. Attorney Jack S. Schmidt, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of life in prison, a fine of $10,000,000, or both, for the drug conspiracy charge and a mandatory minimum sentence of five years, consecutive to the drug trafficking crime to life in prison for the possession of a firearm in furtherance of a drug trafficking crime, a fine of $250,000, or both. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant. Both defendants are currently detained pending trial.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Ketchikan Police Department conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Seven Indicted for Trafficking Cocaine and Marijuana into Minnesota from California and Arizona via FedExRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging ANTHONY CURTIS HARRIS, 33, and six others with conspiring to traffic cocaine and marijuana into Minnesota from California and Arizona via FedEx and the United States Postal Service.1 Additionally, some members of the conspiracy were also charged with possession with intent to distribute cocaine and others with conspiracy to commit money laundering. Six defendants have already made initial appearances in U.S. District Courts in San Diego, Calif., and in St. Paul, and Minneapolis, Minn.
“This case is an excellent example of the power of partnerships and exceptional police work,” said William Martinez, a Saint Paul Police Department assistant chief who oversees major crimes. “Any day we stop a major drug smuggling operation in its tracks is a good day. Thanks to the fine work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and our officers, today is a good day for Saint Paul.”
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge James C. Modzelewski said, “The great success of this investigation is a direct result of the strong partnership between ATF and the St. Paul Police Department. I commend the agents and officers involved in this case for their unwavering tenacity and determination in shutting down this organization that is responsible for some of the illegal drugs and firearms in the streets of St. Paul.”
According to the indictment and documents filed in court, between December 2012 and April 2, 2015, HARRIS made multiple trips from Minnesota to San Diego, California and Phoenix, Arizona to obtain drugs and arrange for their shipment to Minnesota. HARRIS and other members of the conspiracy distributed drugs and deposited the proceeds from drug sales into bank accounts and onto prepaid debit cards.
According to the indictment and documents filed in court, KEVIN BROWN, TOUSSAINT STARKS, LOPEZ WALTERS, SIMON MASON, DONALD WILLIAMS, and DARION ESTIS each participated in the drug trafficking scheme. The defendants sent, received, and distributed drugs, or laundered money on HARRIS’ behalf. On December 20, 2013, law enforcement intercepted a package containing 24.9 pounds of marijuana which was sent to the FedEx Office in Maplewood, Minn. from a FedEx account used by HARRIS. On June 20, 2014, a package containing approximately one kilogram of cocaine was shipped from a FedEx Office in San Diego, Calif. and was picked up the next day by STARKS at a FedEx Office in Eden Prairie, Minn. Between December 2012 and September 2014, hundreds of packages containing a total of more than 1,000 kilograms of marijuana were shipped through the U.S. Postal Service and multiple FedEx accounts linked to HARRIS.
According to the indictment and documents filed in court, during the indicted period, the defendants used multiple bank accounts to promote and conceal the drug trafficking conspiracy. As part of a money laundering scheme, more than $1.2 million dollars in cash was deposited in Minnesota, in bank accounts linked to HARRIS. The deposited funds, which ranged from approximately $2,000 to $9,000 per deposit, were almost immediately withdrawn from the accounts from locations in California.
The indictment is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department, the United States Postal Service Inspections, and the Internal Revenue Service. This case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
Defendant Information: ANTHONY CURTIS HARRIS, 33
San Diego, Calif.
Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
• Possession with Intent to Distribute Cocaine, 1 count
• Conspiracy to Commit Money Laundering, 1 count
KEVIN TERRELL BROWN, 38
Eagan, Minn.
Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
• Conspiracy to Commit Money Laundering, 1 count
TOUSSAINT DAVID STARKS, 46
Bloomington, Minn.
Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
• Possession with Intent to Distribute Cocaine, 1 count
LOPEZ MORRIS WALTERS, 33
New Brighton, Minn.
Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
SIMON LEE MASON, 33
St. Paul, Minn.
Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
• Conspiracy to Commit Money Laundering, 1 count
DONALD BERNARD WILLIAMS, JR., 26
Inver Grove Heights, Minn.
Charges: • Conspiracy to Distribute Marijuana and Cocaine, 1 count
DARION SCOTT ESTIS, 33
Shoreview, Minn.
Charges: • Conspiracy to Commit Money Laundering, 1 count
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The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sentencings for April 20 - April 30, 2015Read the Press Release
Royce E. Mortiz, 46, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 30, 2015, for conspiracy to distribute 500 grams or more of methamphetamine and for conspiracy to launder money. Mortiz was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $400.00 fine and a $200.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mario R. Garza, 33, of Pueblo, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 28, 2015, for conspiracy to distribute 500 grams or more of methamphetamine and for conspiracy to launder money. Garza was arrested in Cheyenne, Wyoming. He received 240 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $2,300.00 fine and a $200.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Ignacio Moreno, 39, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 28, 2015, for possession of child pornography. Moreno was arrested in Cheyenne, Wyoming. He received time served, to be followed by five years of supervised release, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This cases was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Ernie Petersen, 34, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 28, 2015, for being a felon in possession of a firearm. Petersen was arrested in Gillette, Wyoming. He received 27 months imprisonment, to be followed by two years of supervised release. This case was investigated by the National Park Service with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Tracy Alshurafa, 28, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 24, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Alshurafa was arrested in Cheyenne, Wyoming. He received 180 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
Armando Carabajal, 39, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 24, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Carabajal was arrested in Cheyenne, Wyoming. He received 151 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
Wesley Wayne Leech, 48, of Cody, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 20, 2015, for being a felon in possession of a firearm. Leech was arrested in Thermopolis, Wyoming. He received 18 months of probation and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sanford Man Indicted on Drug Trafficking ChargesRead the Press Release
Contact: Benjamin M. Block
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Adam Hill, 34, of Sanford, Maine, was indicted by a federal grand jury in Portland on Tuesday and charged in two counts with possession with intent to distribute heroin and cocaine.
Hill faces up to 20 years in prison and a $250,000 fine on each count.
The case was investigated by the Maine Drug Enforcement Agency, the Sanford Police Department, and the Office of the Maine Attorney General, with assistance from the Maine State Police and South Berwick Police Department.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Round O Man Sentenced for Manufacturing MarijuanaRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Michael R. Rea, age 63, of Round O, South Carolina was sentenced today in federal court in Charleston, South Carolina, for manufacturing and possessing with intent to distribute marijuana, a violation of 21 U.S.C. § 841. United States District Judge Richard M. Gergel of Charleston sentenced Rea to 5 years imprisonment, to be followed by 4 years supervised release.
Evidence presented at the change of plea hearing established that Rea was arrested after law enforcement executed a search warrant at his residence on January 3, 2014. During the search, law enforcement confiscated approximately 1,800 marijuana plants and 65 pounds of harvested marijuana. After his arrest, Rea told officers that he had been growing marijuana since 1989.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Colleton County Sheriff’s Office, the Walterboro Police Department and the South Carolina Law Enforcement Division (SLED). Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Rosebud Woman Sentenced for Concealing Person from ArrestRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, woman convicted of Concealing Person from Arrest was sentenced on April 28, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Samantha Spotted War Bonnet, age 24, was sentenced to one year probation, and a $25 special assessment to the Federal Crime Victims Fund.
Spotted War Bonnet was indicted for on November 13, 2014 by a federal grand jury. She pled guilty on April 28, 2015.
Between June 12, 2014, and June 13, 2014, Spotted War Bonnet harbored and concealed a person who had an active warrant for arrest.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher prosecuted the case.
Spotted War Bonnet was released on probation.
Richard Borja Sentenced to 41 Months PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that RICHARD BORJA, age 33, of Santa Rita, was sentenced on April 29, 2015, before Senior Judge Alex R. Munson, in the District Court of Guam, to 41 months imprisonment, three years supervised release and 200 hours community service.
Defendant BORJA received ice in the mail from his co-defendant Francisco Arias. He pled guilty on June 6, 2014, to Conspiracy to Distribute Methamphetamine.
U.S. Attorney Limtiaco stated, “Our community is not immune from the poison of methamphetamine. This case illustrates the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam.” This conviction resulted from the concerted efforts of law enforcement partners in the OCDETF investigation, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
This OCDETF investigation involved federal agents and local law enforcement officers of the U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA), U.S. Department of Homeland Security Investigations (HSI), Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. National Oceanic Atmosphere Administration (NOAA), and U.S. Coast Guard Criminal Investigative Service (CGIS). The case was prosecuted by Assistant U.S. Attorney Clyde Lemons, Jr.
Rapid City Man Sentenced to 27 Months for Failure to Register as A Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 27, 2015 by U.S. District Judge Roberto A. Lange.
David Eagle Bear, age 31, was sentenced to 27 months in custody, 6 years of supervised release, a $100 fine, a $100 special assessment to the Federal Crime Victims Fund, and $527.24 for restitution.
Eagle Bear was indicted for Failure to Register as a Sex Offender by a federal grand jury on November 13, 2014. He pled guilty on January 26, 2015.
Eagle Bear was previously convicted of a sex offense that required him to register as a sex offender, and he signed paperwork acknowledging that requirement. Between August 4, 2014, and October 19, 2014, Eagle Bear moved and failed to change and update his sex offender registration as required by law.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher prosecuted the case.
Eagle Bear was immediately turned over to the custody of the U.S. Marshals Service.
Randolph County Business, Management Members IndictedRead the Press Release
GREENSBORO, N.C. – A Randolph County business, the company’s current president, and the company’s former president have been indicted for conspiring to import merchandise by means of fraudulent invoices and conspiring to commit international money laundering, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Branco Enterprises, Inc., a North Carolina-incorporated business, located in Asheboro, N.C., as well as Chad Franklin Branson and Larry Wayne McKenzie, both of Randolph County, are alleged to have conspired and agreed to defraud the United States by filing false entry documents with United States Customs. The alleged false documents were associated with the importation of foreign-manufactured clothing in an alleged attempt to underpay import duties. The Indictment charges further that the defendants promoted this fraudulent underpayment of import duties by wiring money to Chinese clothing manufacturers. Branson and McKenzie face up to 25 years in federal prison and $750,000 in fines if convicted of both counts. The company faces fines up to $1 million if convicted of both counts.
The case is being investigated by the United States Department of Homeland Security (including Customs and Border Protection and Immigration and Customs Enforcement, Homeland Security Investigations), and the Internal Revenue Service.
An Indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Puerto Rican Woman Admits Smuggling Cocaine into New JerseyRead the Press Release
NEWARK, N.J. – A woman from Puerto Rico today admitted trying to smuggle 2.9 kilograms of cocaine through Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Kenia Diaz, 24, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an indictment charging her with one count of possessing cocaine with intent to distribute.
According to documents filed in this case and statements made in court:
On May 22, 2013, Diaz arrived at Newark Liberty International Airport on a flight from Puerto Rico. During a routine inspection, a canine detected a controlled substance inside Diaz’s suitcase. After searching the suitcase, agents recovered approximately 2.9 kilograms of cocaine.
The narcotics charge to which Diaz pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Aug. 11, 2015.
U.S. Attorney Fishman praised special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Kevin Carlucci Esq., Newark
diaz_kenia_plea_indictment.pdf
Prison Sentence Imposed on "Mr. Big" - Final Defendant in $15.5 Million Dollar Decade Long Psychic SwindleRead the Press Release
PORTLAND, Ore. – On April 30, 2015, U.S. District Judge Robert E. Jones sentenced Blancey Lee, 40, of Portland, to 24 months in prison for his role in a conspiracy to commit money laundering and his filing of false personal income taxes for 2012. Judge Robert E. Jones also ordered Blancey Lee to pay $2,599,809.07 in restitution to the victim. In addition to the prison sentence, the defendant must also serve three years of post-prison supervised release. The co-defendant, Rachel Lee, 44, of Canby, Oregon was sentenced on February 19th, 2015 by U.S. District Judge Jones to serve 100 months in federal prison, and pay $15,490,978.65 in restitution. Co-defendant, Porsha Lee, 25, of Northern California, was sentenced on March 15, 2015, by U.S. District Judge Jones to serve 33 months in federal prison and pay $12,822,262.25. The co-defendants restitution obligations are joint and several.
“Individuals who knowingly steal from the vulnerable or benefit and turn a blind eye to these predatory acts will be prosecuted to the fullest extent of the law,” said Acting U. S. Attorney Billy J. Williams. “Due to the combined efforts of federal, state, and local law enforcement, and the effective use of federal forfeiture, the victim is now safe and financially stable. We will continue to work tirelessly with our law enforcement partners to hold self-serving crooks accountable, protect victims, and seek full restitution.”
The victim met codefendant Rachel Lee in 2004 when he visited her Psychic Shop in Bend, Oregon. At the time, Blancey Lee and Rachel Lee lived together as a couple at the Psychic Shop and presented themselves as husband and wife. Between 2004 and 2006, Rachel Lee fostered a friendship with the victim for the purpose of extracting money from him. As a result of her lies and the trust she established with the victim, Rachel Lee assumed a role as paid care giver to the victim’s elderly father by 2007. Trusting her to act in his best interest, the victim also turned over all personal and business account control to Rachel Lee. While controlling the victim’s finances, Rachel Lee, Blancey Lee, and their families lived in a million-dollar home in the Portland West Hills purchased with the victim’s money.
Rachel Lee recruited members of her family to play key roles in the fraud scheme. Rachel Lee and her daughter Porsha Lee created a fake persona and introduced this character to the victim. They named the character Mary Marks. This character wore a blond wig, glasses, a hat and sported a British accent. Porsha Lee as Mary Marks met the victim and used information her mother provided her to connect with the victim. Porsha Lee as Marks claimed to be a bookkeeper, and soon after began assisting Rachel Lee with the management of the victim’s accounts.
By 2011 the victim believed he and Marks married and had a child. The child presented to the victim as his son is actually one of Rachel Lee’s grandchildren. Digital images reveal years of holidays, birthdays and events with the victim, Rachel Lee, Porsha Lee as Marks, and their purported child.
Between 2007 and 2011 Rachel Lee directed the victim to incrementally liquidate investments accounts totaling approximately $3.8 million dollars. After depleting the victim’s investment account, Rachel Lee convinced the victim he owed substantial taxes and needed to sell his family’s Tree Farm. At Rachel Lee’s direction, the Tree Farm properties were sold for a total of approximately $12.3 million dollars.
Rachel Lee, Blancey Lee, and Lee family members spent the victim’s fortune on a luxury lifestyle. Rachel Lee and Blancey Lee spent funds on high-roller trips to Las Vegas, trips to California, and a first class trip to Europe in 2013. Rachel Lee also spent her ill-gotten gains on luxury clothing and jewelry, including a $64,000 Rolex watch for Blancey Lee. While selling off the victim’s property, Rachel Lee and Blancey Lee purchased a 2012 Bentley Mulsanne and 2012 Ferrari on a single day, and plated those vehicles “MRBIG” and “MRBIG1”. Finally, between 2010 and 2013, Rachel Lee and Blancey Lee used the victim’s money to purchase at least ten properties at a cost of approximately $3.3 million dollars. Rachel Lee and Blancey Lee used four of the properties – in Bend, Portland, Canby, and Scappoose – as Psychic Shops.
As a result of investigators’ foresight, before the defendants were arrested or charged, bank accounts worth approximately $1.9 million dollars and assets including a 2012 Ferrari California and 1955 Chevy Bel-Air were identified and immediately seized to be forfeited and returned to the victim before they could be dissipated by the defendants.
By the time of Rachel Lee’s arrest and indictment in May 2014, the victim held less than $250,000 in accounts under his control. Through the initiation of forfeiture proceedings, the Bentley, the Ferrari, the Bel-Air, and 10 real properties have already been returned to the victim, and efforts are underway to restore to the victim the $1.9 million in cash seized and forfeited from bank accounts. The government is initiating civil forfeiture proceedings to liquidate numerous Rolexes and other designer goods purchased by the defendants and will provide those proceeds to the victim.
“Greed and deceit led to incredible financial harm to the victim in this case,” said Special Agent in Charge Teri Alexander of Internal Revenue Service Criminal Investigation. “While the recovery of funds and assets could never fully heal the wounds he sustained from being robbed of earnings derived over several generations, we successfully salvaged a significant portion of the money syphoned off by the Lee’s treachery. I am pleased that we will be able to return all the recovered funds and proceeds from the sale of assets to the victim.”
Canby Police Chief Bret Smith, said: “The Canby Police would like to express our appreciation and acknowledgement to the U.S. Attorney’s Office and to the Internal Revenue Service for their support and the many extra hours of hard work it took to bring this criminal investigation to a successful resolution”.
This case was investigated by the Internal Revenue Service, Criminal Investigations and the Canby Police Department with assistance from the Multnomah County Sheriff’s Office, Social Security Administration - Office of Inspector General, the Oregon Department of Justice, and the Portland Police Department. The case is being prosecuted by Assistant U.S. Attorney Donna Brecker Maddux and Assistant U.S. Attorney AnneMarie Sgarlata.
Portion of State Highway Route 140 Named in Honor of Rick Oules, Former Law Enforcement Coordinator for the U.S. Attorney’s OfficeRead the Press Release
SACRAMENTO, Calif. — Earlier today in Merced in the presence of his family and many friends and former colleagues, a ceremony was held in honor of Rick Oules, former Law Enforcement Coordinator for the United States Attorney’s Office for the Eastern District of California, that included the unveiling of the Rick K. Oules Memorial Highway sign. Pursuant to a bill introduced in the state legislature earlier this year by Senator Anthony Canella (Ceres), the portion of State Highway Route 140 from Arboleda Drive to Plainsburg Road in Merced County will now be known as the Rick K. Oules Memorial Highway.
Rick began his career in law enforcement in 1977 with the Merced County Sheriff’s Office, where he served as a Patrol Deputy, a Narcotics Detective, and a Patrol Sergeant. In 1987, he joined the California Department of Justice as a Special Agent and was assigned to the Bureau of Narcotic Enforcement, where he worked on and supervised a clandestine lab enforcement team resulting in the investigation and dismantling of approximately 300 methamphetamine laboratories. In 2005, he was appointed as the Director of the California Department of Justice’s Division of Law Enforcement, one of the largest state investigative law enforcement agencies in the United States. During his career with the State of California, Rick served as President of the California Narcotic Officers’ Association (CNOA), served on the CNOA Executive Board of Directors and the Executive Board of Directors of the California Peace Officers’ Association, and was appointed to the California Council on Criminal Justice.
In January of 2008, Rick joined the United States Attorney’s Office as our Law Enforcement Coordinator. As LEC, Rick represented our office and the United States Department of Justice as the primary point of contact for the 34 county sheriffs’ offices, more than 100 police departments, and multiple other state local and tribal law enforcement agencies that serve the Eastern District of California. He served as LEC with great distinction until his untimely death in 2011, after a courageous battle with lung cancer that was determined to be a result of his frequent long-term exposure to the chemicals and solvents found in the methamphetamine laboratories he dismantled over the course of his career.
“Rick Oules was a dedicated, skilled and effective lawman, who spent years making California a safer place to live,” said United States Attorney Benjamin B. Wagner. During the all too brief time that we were fortunate to have with him, he represented the U.S. Attorney’s Office with dignity and grace, and to great effect. We miss all the great work that he did, but we miss him more as a friend. We are so pleased to see the establishment of this memorial in his name.”
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Pittsburgh-area Men Indicted on Drug, Firearms and Money Laundering ChargesRead the Press Release
Defendants with prior felony convictions face potential life sentences if convicted
PITTSBURGH - Four Pittsburgh-area residents have been indicted by a federal grand jury in Pittsburgh on charges of violating the federal narcotics, firearms and money laundering laws, United States Attorney David J. Hickton announced today.
The six-count superseding indictment, returned on April 14, named Price Montgomery, 34, formerly of Pittsburgh, Pa., (currently incarcerated); James Perrin, 36, formerly of Pittsburgh, Pa., (currently incarcerated); Charles Cook, 48, of Pittsburgh, Pa.; and Andre Avent, 37, of Homestead, Pa., as the defendants.
According to the superseding indictment, from April 2013 and continuing to June 2014, in the Western District of Pennsylvania and elsewhere, Montgomery and Perrin conspired to distribute one kilogram or more of heroin, and possessed with intent to distribute that heroin. The indictment also charges that on June 8, 2014, Montgomery and Perrin, who both have prior felony convictions, possessed 16 firearms in furtherance of that drug trafficking crime. Federal law prohibits a convicted felon from possessing firearms. Montgomery, Cook and Avent are charged with conspiring to commit money laundering.
Based upon their prior convictions, the law provides for mandatory minimum sentences of 25 years (Montgomery) or life (Perrin), and a maximum sentence of life. Cook and Avent face a maximum sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The Pennsylvania Attorney General’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service – Criminal Investigation conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Technician Indicted for Mail Fraud in Prescription Reimbursement SchemeRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a former Madison County pharmacy technician for mail fraud in connection with a prescription drug insurance reimbursement scheme, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
A five-count indictment filed in U.S. District Court charges HOLLY L. CHAMPION, 29, of Madison, with five counts of mail fraud between February 2011 and June 2012 when she worked for Star Discount Pharmacy in Meridianville in Madison County. According to the indictment, Champion submitted false prescription information to her insurance provider, Blue Cross and Blue Shield of Alabama, causing the company to mail her checks totaling about $7,600 as reimbursement for prescription drugs she never purchased.
Champion entered false prescription information on herself and family members into the pharmacy's automated prescription dispensing system so it would generate a claim number, which she then submitted to Blue Cross seeking up to 80 percent reimbursement for the cost of the fake prescriptions, according to the indictment.
The maximum penalty for each mail fraud count is 20 years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Davis A. Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Pakistan National Indicted in Multi-National Cybercrime InvestigationRead the Press Release
CONCORD, N.H. –Mustafa H. Arif, an individual with dual citizenship in Pakistan and the United Kingdom, has been indicted for his alleged role in a large-scale international scheme to defraud individuals of over $12 million. Arif is alleged to have operated a series of websites promoting a variety of drugs and claiming these products would cure many serious diseases. These websites targeted individuals from New Hampshire as well as throughout the world, announced Acting United States Attorney Donald Feith.
Arif has been charged in a three count indictment, including one count of wire fraud and two counts of shipping misbranded drugs in Interstate Commerce. The charges relate to hundreds of websites controlled by Arif while operating in Pakistan. The websites promoted the sale of drugs claiming to cure, mitigate, and treat numerous diseases and included materially false and misleading information about the efficacy of these drugs.
The websites, many of which included allegedly falsified clinical research, promoted drugs for a numbers of serious and sometimes incurable illnesses including anemia, mental retardation, ADHD, Bell’s palsy, and bulimia.
Arif, who appeared in United States District Court today for arraignment, was previously arrested in February 2014 in New York City pursuant to a criminal complaint. He was thereafter transported to New Hampshire to answer those charges and he has remained in custody since then.
This case is scheduled for trial on June 16, 2015. If convicted on the pending charges, Arif faces up to twenty (20) years in prison for the wire fraud count and up to three (3) years in prison for each count of introducing misbranded drugs into interstate commerce.
This investigation was led by the FDA/Office of Criminal Investigations, Cybercrime Investigations Unit along with Homeland Security Investigations. Assistance during the investigation was provided by the New Hampshire Attorney General’s Office, Portsmouth New Hampshire Police Department, the United States Consulate, Diplomatic Security Service Lagos, Nigeria office, New Zealand Ministry of Health, United Kingdom Medicines and Healthcare Products Regulatory Agency, and the Department of Justice, Office of International Affairs. The investigation is being prosecuted by Assistant United States Attorney Arnold Huftalen and SAUSA Sarah Hawkins of the FDA/Office of Chief Counsel.
An indictment is a method for alleging criminal charges against an individual. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Operation Rockfish Press ConferenceRead the Press Release
MEDIA ADVISORY
WHEN: Thursday, April 30, 2015 at 1:00 pm
WHERE:
Terry Sanford Federal Building
U.S. Attorney’s Office
310 New Bern Avenue, 3rd Floor Main Conference Room
Raleigh, NC 27601-1461
Re: Operation Rockfish Press ConferenceRALEIGH – The United States Attorney’s Office announces a press conference to discuss the Public Corruption Operation Rockfish arrests today. The case involves a major undercover investigation of current and former law enforcement and corrections officers. The following dignitaries are scheduled to join U.S. Attorney Thomas G. Walker. Acting Chief of the Department of Justice Public Integrity Section Raymond Hulser, and the Special Agent in Charge of the Charlotte Division of the FBI John A. Strong, and Frank Perry, Secretary, North Carolina Department of Public Safety .
Credentialed members of the media are invited to attend. For additional information please e-mail Michelle Solomon-Brown at [email protected].Ocean County, New Jersey, Man Admits Conspiring to Export Firearms Parts from the United StatesRead the Press Release
CAMDEN, N.J. – A Toms River, New Jersey, man today admitted his role in a conspiracy to smuggle more than $200,000 worth of firearms parts out of the United States, U.S. Attorney Paul J. Fishman announced.
Abelardo Delmundo, 53, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws.
According to the documents filed in this case, other cases and statements made in court:
Delmundo admitted that from 2008 through October 2013, he and other conspirators he met through an internet forum agreed to ship firearms and firearms parts from the United States to the Philippines. Kirby Santos, 38, of the Republic of the Philippines and others allegedly used credit cards and other forms of payment to purchase firearms parts from suppliers in the United States. Knowing that they would not ship to the Philippines, Santos and others arranged for the suppliers to send the firearms parts to Delmundo’s Toms River address in order to make it appear as if it were a domestic sale.
Delmundo also admitted that after receiving the firearms parts, he falsely labeled the contents of the package as food or other home goods and exported the firearms parts to the Philippines for ultimate delivery to the other conspirators. To disguise his role in the conspiracy, Delmundo used the alias “Teng Flores”when sending the packages containing prohibited items. Upon receiving the firearms parts, Delmundo was paid through cash payments and wire transfers to Delmundo’s relatives in the Philippines.
During the course of the nearly five-year long conspiracy, Delmundo and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to the Philippines without the required export license.
Santos is charged by criminal complaint with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws. He made his initial appearance in Camden federal court on April 22, 2015 and was detained. The charges and allegations against Santos are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The conspiracy charge to which Delmundo pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 7, 2015.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky Jr., with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden and Trial Attorney Nathan M. F. Charles of the Counterespionage Section of the Justice Department’s National Security Division.
Defense counsel: David Schlendorf Esq., Toms River
North Charleston Man Sentenced to 15 Years in Federal PrisonRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Horace E. Green, age 25, of North Charleston, South Carolina was sentenced today in federal court in Charleston, South Carolina, for discharging of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Judge Richard M. Gergel of Charleston sentenced Green to 15 years imprisonment, to be followed by 4 years supervised release.
Evidence presented at the change of plea hearing established that Green approached an individual about selling marijuana to him. Green then attempted to rob the individual, and as the individual fled, Green fired multiple shots from a .38 revolver at the individual. The individual was not hit by any of the shots fired by Green.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the North Charleston Police Department. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Norristown Resident Charged with Illegal Reentry After DeportationRead the Press Release
Lamberto Lorenzo-Santos, a/k/a “Jose Hernandez-Santos,” a/k/a “Alfredo Perez,” 35, of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 8, 2015, Lamberto-Santos, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 13, 2005 and September 19, 2006.
If convicted the defendant faces a maximum possible penalty of twenty years imprisonment, a three year period of supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nigerian Witch Doctor Sentenced for East Texas Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 58-year-old Lafayette, LA, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher Omigie, a Nigerian native and naturalized U.S. citizen, pleaded guilty on Oct. 28, 2014 to conspiracy to distribute cocaine was sentenced to 168 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, Omigie presented himself to drug traffickers as a witch doctor and was paid hundreds of thousands of dollars to provide supernatural protection from law enforcement. Omigie was consulted by drug traffickers in the Cesar Barrera and David Bazan drug trafficking organizations on a daily basis and before, during and after each drug transaction. The supernatural protections rendered involved card readings, massages (by Omigie) with magic ointments, cutting of the skin with razor blades and the topical application of magic powder, the use of magic amulets, magic belts, magic coconuts and magic rocks (that those being treated were required to talk to). Drug traffickers were required by Omigie to go without bathing and intercourse for a period of time following magic treatments so as not to diminish the potency of those ministrations. Magic “law stay away” candles were also burned in order to protect drug traffickers from law enforcement detection. Omigie would regularly return to Africa, at drug traffickers’ expense, to re-new his supernatural powers. Omigie was indicted by a federal grand jury on Sep. 5, 2013.
Cesar Barrera and David Bazan have since both pleaded guilty to schemes involving the trafficking of more than 1,000 kilograms of cocaine each.
This case was investigated by the U.S. Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney John Craft.
New Orleans Woman Pleads Guilty to Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SYLVIA CHESTNUT, age 37, of New Orleans, pled guilty today to a one-count Bill of Information for stealing property from a Navy Exchange Store in Florida.
According to court records, between November 12, 2011 and December 18, 2011, CHESTNUT wrote 43 worthless checks, totaling $20,549.36, to two Naval Exchange Stores located at the Naval Air Station in Jacksonville, Florida, and Naval Station Mayport, Florida. CHESTNUT used the worthless checks to purchase clothing, household items, pre-paid Visa cards, and other personal items.
CHESTNUT faces a maximum of 10 years imprisonment, to be followed by three years of supervised release, and a fine of $250,000. U.S. District Judge Lance M. Africk set sentencing for July 23, 2015.
U.S. Attorney Polite praised the work of the Naval Criminal Investigative Service in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis and Assistant U.S. Attorney Kevin Frein of the United States Attorney’s Office for the Middle District of Florida are in charge of the prosecution.
Sylvia Chestnut Factual Basis
New Jersey Woman Charged with Stealing Government FundsRead the Press Release
PHILADELPHIA - Maria Houck, 59, of Cherry Hill, New Jersey, was charged by indictment, unsealed yesterday, with 12 counts of mail fraud, two counts of theft of government funds, and one count of Social Security fraud, announced United States Attorney Zane David Memeger. According to the indictment, the defendant received retirement and pension benefits from the Social Security Administration and the Department of Veterans Affairs that were intended for her deceased mother, after her mother’s death in June 2005. The defendant’s alleged actions resulted in a loss to the Social Security Administration of approximately $54,399 and a loss to the Department of Veterans Affairs of approximately $110,354, for a total loss to the government of approximately $164,753.
If convicted, the defendant faces a substantial period of incarceration, restitution of $164,753 to the government, three years of supervised release, and possible fines.
The case was investigated by the Social Security Administration Office of Inspector General and the Department of Veterans Affairs Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
New Hampshire Man Pleads Guilty to Possession of an Unregistered FirearmRead the Press Release
CONCORD, N.H. –Ryan Howe, 52, of Hanover, plead guilty today in United States District Court for the District of New Hampshire to Possession of an Unregistered Firearm, announced Acting United States Attorney Donald Feith.
On September 15, 2011, members of ATF New Hampshire and Vermont field offices and the Hanover Police Department executed a search warrant at Howe’s residence. During the execution of the search warrant, law enforcement seized eight firearms and a quantity of ammunition from Howe’s bedroom, including a Winchester Model 120 20-gauge short-barreled shotgun. The shotgun had a barrel length of 16 inches, less than the required 18 inches. In order to legally possess such a short-barreled shotgun, Howe was required to register the firearm and his ownership with the National Firearms Registration and Transfer Record. Howe never registered the short-barreled shotgun.
Howe is scheduled to be sentenced on August 12, 2015. He is facing a maximum sentence of ten years in prison. He was released on conditions pending sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Debra M. Walsh.
Navajo Man from Thoreau, N.M., Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Bronson Ranger, 36, an enrolled member of the Navajo Nation who resides in Thoreau, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a felony information charging him with aggravated sexual abuse. Under the terms of his plea agreement, Ranger will be sentenced in the range of 120 to 140 months in federal prison followed by a term of supervised release to be determined by the court. Ranger will be required to register as a sex offender after completing his prison sentence.
Ranger was arrested on Dec. 12, 2012, on an indictment alleging that he sexually abused a child under the age of 12 from Aug. 1, 2008 through Oct. 30, 2008. The indictment alleged that Ranger violated the young victim in a location within the Navajo Indian Reservation in McKinley County, N.M.
During today’s plea hearing, Ranger entered a guilty plea to a felony information charging him with aggravated sexual abuse. In entering his guilty plea, Ranger admitted sexually molesting the victim between Aug. 1, 2008 and Oct. 30, 2008, in McKinley County, N.M., which is within the Navajo Indian Reservation.
Ranger has been in the custody of the U.S. Marshals Service since his arrest and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback 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/.
Monroe County, Kentucky, Tobacco Farmer Guilty of Crop Insurance FraudRead the Press Release
Fraud totaled $711,958
BOWLING GREEN, Ky. - A Monroe County, Kentucky tobacco farmer pleaded guilty in U.S. District Court in Bowling Green yesterday, before District Judge Greg N. Stivers, to charges of crop insurance fraud totaling $711,958 announced Acting U.S. Attorney John E. Kuhn, Jr.
According to the plea agreement, Tracy E. Dillard, 45 of Fountain Run, Kentucky aided and abetted by others, admitted in court today of knowingly making false statements and reports on insurance claims submitted to Producers Agriculture Insurance Company, a company insured by the Federal Crop Insurance Corporation (FCIC).
“The federal crop insurance program ultimately exists to provide a safety net for our farming community,” stated Acting U.S. Attorney John Kuhn. “Fraud undermines the entire program. This U.S. Attorney’s Office is committed to working with our partner federal agencies to ensure that every penny of taxpayer money is fully restored.”
The violations occurred between 2009 and March 10, 2011, in the Western District of Kentucky, including Allen, Barren, Hart and Monroe Counties in Kentucky, and Macon County in Tennessee.
Specifically, in 2009 Dillard had four separate crop insurance policies on four different crops, two in Barren County, and two in Monroe County. Aided and abetted by others, Dillard intentionally overstated crop damage for each crop by forty percent (40%) on a crop insurance claim form, resulting in a loss of $125,339.20.
Additionally, in 2010 Dillard had twelve separate tobacco crop insurance policies on twelve different crops. Dillard, aided and abetted by others, intentionally overstated crop damage by forty percent (40%) for each crop on a crop insurance claim form, resulting in a loss of $504,454.80.
Finally, in 2011 Dillard had a crop insurance policy on a crop located in Allen County. Aided and abetted by others, Dillard intentionally falsified the crop plant date on a crop insurance claim form, resulting in a loss of $82,164.
The FCIC indemnifies insurance companies for crop insurance claims.
For the 2009, 2010, and 2011 policies listed above, Dillard caused fraudulent claims to be submitted to the United States government, through claims made to ProAg and paid by the FCIC, resulting in a $711,958 loss to the United States. Dillard agreed to pay full restitution under the terms of his plea agreement.
Dillard faces no more than 30 years in prison, a fine of $1,000,000 and a five year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Department of Agriculture (USDA) Office of Inspector General (OIG) and the Risk Management Agency, Special Investigation Branch.
Mississippi Man Sentenced for His Role in a Conspiracy to Commit Racially Motivated Assaults, Culminating in the Killing of an African-American Man Run over by TruckRead the Press Release
The Justice Department announced today that John Louis Blalack, 21, of Brandon, Mississippi, was sentenced today in U.S. District Court of the Southern District of Mississippi in Jackson for his role in a federal hate crime conspiracy involving racially motivated assaults, culminating in the death of James Craig Anderson, an African-American man, in the summer of 2011. Blalack had previously pleaded guilty to two counts of commission of a hate crime for his role in the conspiracy and the cover-up. Blalack was sentenced to 240 months in prison.
Eight other defendants in related cases, Deryl Paul Dedmon, 22, John Aaron Rice, 22, Dylan Wade Butler, 23, Jonathan Kyle Gaskamp, 22, and Joseph Paul Dominick, 23, all of Brandon, Mississippi; William Kyle Montgomery, 25, of Puckett, Mississippi, Sarah Adelia Graves, 22, of Crystal Springs, Mississippi; and Shelbie Brooke Richards, 21, Pearl, Mississippi, were previously sentenced to 600 months, 220 months, 78 months, 48 months, 48 months, 224 months, 60 months and 96 months, respectively, for their roles in the conspiracy. Robert Henry Rice is awaiting sentencing.
“The Justice Department will always fight to hold accountable those who commit racially motivated assaults,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope that the prosecution of those responsible for this horrific crime will help provide some measure of closure to the victim’s family and to the larger community affected by this heinous crime.”
“This prosecution sends a clear message that this office, in partnership with the DOJ Civil Rights Division, will prioritize and aggressively prosecute hate crimes and other civil rights violations in the Southern District of Mississippi,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.
“The FBI takes very seriously its responsibility to uphold the civil rights of all citizens,” said Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division. “Together with its law enforcement partners, the FBI will continue its efforts to aggressively pursue and bring to justice all those individuals who conspire to deprive others of their civil rights merely because of the color of their skin.”
In prior court hearings, the defendant admitted that beginning in the spring of 2011, he and others conspired with one another to harass and assault African Americans in and around Jackson. On numerous occasions, the co-conspirators used dangerous weapons, including beer bottles, sling shots and motor vehicles, to cause, and attempt to cause, bodily injury to African Americans. They would specifically target African Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault. The co-conspirators would often boast about these racially motivated assaults.
Blalack admitted his involvement in the conspiracy and to his role in the beating and killing of James Craig Anderson. Specifically, he admitted that in the early morning hours of June 26, 2011, he and six other co-conspirators agreed to carry out their plan to find, harass and assault African Americans. At around 4:15 a.m., Blalack, Montgomery, John Aaron Rice and Butler drove to Jackson in Montgomery’s white Jeep with the understanding that Richards, Graves and Dedmon would join them a short time later.
At approximately 5:00 a.m., the four occupants of the Jeep spotted Anderson in a motel parking lot off Ellis Avenue. They decided that Anderson would be a good target for an assault because he was African-American and appeared to be intoxicated. Blalack and J. Rice got out of the Jeep to distract Anderson while they waited for Richards, Graves, and Dedmon to arrive. After Richards, Graves and Dedmon arrived in a Ford F250 truck, Rice and Dedmon physically assaulted Anderson. After the assault, the four occupants of the Jeep left the motel parking lot in the Jeep. Dedmon then deliberately used his truck to run over Anderson, causing injuries which resulted in Anderson’s death. Blalack also admitted that prior to Anderson's death he and his co-conspirators threw beer bottles at African American and also used a sling shot to shoot metal ball bearings at victims in Jackson.
This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Mississippi, District Attorney’s Office. This case was investigated by the Jackson Division of the FBI and the Jackson Police Department. It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division of the Department of Justice, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.