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19 February 2015
Female Howard County Bloods Gang Member Sentenced to Prison for Racketeering Conspiracy and Gun ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Heather Lynn Carter, a/k/a “Hunnilyn,” age 30, of Columbia, Maryland, to 63 months in prison, followed by five years of supervised release, for conspiring to participate in a racketeering conspiracy, and possession of a firearm in furtherance of a crime of violence, in connection with her membership in the Bloods gang operating primarily out of Howard County, Maryland.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
According to her plea agreement, since 2007, Carter was romantically involved with Anthony Preston, a known Bloods leader of the “Swann” set operating in Howard County, Maryland. As a result of this relationship, and at Preston’s behest, Carter became a female member of the Bloods, otherwise known as a “Ruby,” starting in the fall of 2007. Carter has a “Ruby” tattoo, as well as a five-pointed star tattoo, both of which symbolize her association with the Bloods.
Carter and her co-defendants were identified as members of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The investigation included four court ordered wiretaps on gang members’ cell phones. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.
The investigation began with an assault and robbery of an ATF confidential informant (CI) in Columbia, Maryland, on November 8, 2011. The ATF was planning a controlled purchase of firearms from co-defendant and fellow gang member Michael Johnson, a/k/a “Ace,” a/k/a “Bloody Mike” after Johnson provided via text two photos of firearms, an assault rifle and a handgun, available for purchase by the CI. Instead of selling the guns, Johnson directed other gang members, including Bryan Mays, to rob the CI.
Among her gang activities, Carter dealt prescription pills and crack cocaine. She referred oxycodone customers to Preston, as well as sold oxycodone herself. She also sold crack cocaine at Preston’s behest, and later provided crack cocaine to Johnson, who was dealing crack with Preston. Carter was present when Bloods members carried firearms and committed acts of violence. For example, on February 22, 2012, Carter was present when Johnson and co-defendant Giovanni Wright assaulted and robbed at gunpoint a rival gang member outside the home of Johnson’s baby’s mother. Carter continued her association with, and participation in, the Bloods after witnessing this assault. She also subsequently maintained a firearm belonging to a gang member in her home.
In addition, Carter obstructed justice by lying to federal law enforcement to assist Johnson, a fellow gang member, in evading arrest on a federal warrant. On February 28, 2012, agents went to Carter’s residence in an attempt to arrest Johnson on charges related to the 2011 robbery of the ATF CI. Carter told the agents that she last saw Johnson “a few days ago,” and that she had no means of contacting him. Toll records reflect that Carter called Johnson on his cell phone shortly after agents left. That same day, law enforcement went to a motel in Hanover, Maryland to look for Johnson. Law enforcement confirmed with the clerk that Heather Carter had rented a room earlier that day and that Carter was accompanied by Johnson. Johnson never returned to the hotel. Based on the phone records between Carter and Johnson, Carter told Johnson that law enforcement was on the way to the hotel and Johnson was able to evade arrest. Despite daily efforts, law enforcement could not locate and arrest Johnson until over a week later, on March 9, 2012.
As a “Ruby,” Carter was responsible for relaying communications, both online and telephone, from incarcerated Bloods to Bloods on the street. Carter, for example, was responsible for allowing Johnson, once arrested on March 9, 2012, to communicate to other gang members and associates via Facebook, mail, and telephone while he was in jail. These communications related to organizing gang hierarchy, dividing up territory, collecting drug proceeds, and directing gang activity. Carter also encouraged and collected money from other gang members to support Johnson and other incarcerated Bloods. Carter also participated in, and facilitated, conversations between Johnson and other gang members regarding smuggling contraband into the facility.
On May 8, 2013, a search warrant was executed on Carter’s residence and evidence relating to her drug trafficking and gang association was recovered, including a .22 caliber revolver, loaded with six rounds of .22 caliber ammunition, which belonged to Giovanni Wright.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Judge Russell has sentenced co-defendants Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland, and Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, to 205 months in prison and 18 years in prison, respectively. Bloods gang member Bryan Alexander Mays, a/k/a “Bam Bam,” “Boomar,” and “G,” age 24, of Columbia, Maryland was sentenced to102 months in prison for conspiring to commit robbery and using a gun during a crime of violence, for his participation in the robbery of the ATF CI. Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, pleaded guilty to conspiring to participate in a racketeering conspiracy, and using and carrying a firearm during and in relation to a crime of violence, and is awaiting sentencing. Preston and the government have agreed that if the Court accepts the plea agreement, Preston will be sentenced to 20 years in prison.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.
Felon in Possession of Ammunition Sentenced to Five YearsRead the Press Release
Ft. Myers, Florida – United States District Court Judge John A. Steele has sentenced Edward Bergen (29, Cape Coral) to 60 months’ imprisonment, followed by three years of supervised release, for one count of possession of ammunition by a convicted felon and one count of possession with intent to distribute marijuana.
Bergen was indicted on January 22, 2014.
According to court documents, a search warrant was executed at Bergen’s residence in December of 2013. Located inside a locked safe in his bedroom were 81 rounds of ammunition and marijuana. At the time of the offense, Bergen was a previously convicted felon, and therefore was prohibited from possessing a firearm or ammunition under federal law.
Bergen operated a Facebook page entitled “Snitch Stoppers 239” in which he identified individuals cooperating with law enforcement and offered rewards to others who identify “snitches” to him for publication on his webpage. Bergen has remained in custody since his arrest on December 13, 2013.
This case was investigated by the Cape Coral Police Department and the Drug Enforcement Administration – Fort Myers Resident Office. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
Federal Indictment: Atchinson Man Kidnapped ChildRead the Press Release
KANSAS CITY, KAN. – An Atchison man has been indicted on federal charges of kidnapping a child, U.S. Attorney Barry Grissom said today.
Marcas McGowan, 30, Atchison, Kan., was charged Wednesday in U.S. District Court in Kansas City, Kan., with one count of kidnapping a child, one count of discharging a firearm during the kidnapping, one count of unlawfully possessing a firearm following a felony conviction, and one count of unlawful possession of a firearm following a misdemeanor domestic violence conviction.
Assistant U.S. Attorney Scott Rask and Leavenworth County Attorney Todd Thompson will be prosecuting the case. Mr. Thompson has been designated as a Special Assistant U.S. Attorney.
“This is a very serious case and my office will be working closely with the Leavenworth County Attorney to see that it gets the attention it deserves,” U.S. Attorney Barry Grissom said.
“My office has always had a great working relationship with U.S. Attorney Barry Grissom and his staff, so I appreciate the opportunity to work with them to pursue this matter federally,” said Leavenworth County Attorney Todd Thompson. “My office always strives for what is in the best interest of the Leavenworth community, and will continue to do so through our collaboration with the U.S. Attorney’s office.”
The federal indictment alleges that on July 18, 2014, McGowan kidnapped a minor victim. He traveled from Kansas to Missouri and back to Kansas with the child.
Upon conviction, the crimes carry the following penalties:
Kidnapping: Not less than 20 years and not more than life and a fine up to $250,000.
Discharging a firearm in a crime of violence: Not less than 10 years and not more than life, consecutive to any other sentence, and a fine up to $250,000.
Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a firearm following a misdemeanor conviction for domestic violence: A maximum penalty of 10 years and a fine up to $250,000.
The Atchison Police Department, the Platte County (Mo.) Sheriff’s Office, the Weston (Mo.) Police Department, the Leavenworth Police Department, the Kansas Bureau of Investigation and the FBI investigated.
Farmington Man Sentenced to Five Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Brandon Smith, 29, of Farmington, N.M., was sentenced this morning in federal court in Albuquerque, N.M., for his methamphetamine trafficking conviction. Smith was sentenced to five years in federal prison followed by three years of supervised release. He also was ordered to forfeit $3,520.00 in cash found in his possession when he was arrested in Feb. 2014.
Smith was one of 29 individuals charged in Feb. 2014, with drug trafficking charges as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation culminated on Feb. 26, 2014, when 26 of the defendants were arrested during a law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Two other defendants were arrested during the course of the investigation and the final defendant was arrested on March 3, 2014.
The 29 defendants were charged as a result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization led by Isaac Anaya that distributed quantities of methamphetamine throughout San Juan County and expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Thirteen of the defendants, including ringleader Isaac Anaya, 31, of Farmington, N.M., were charged in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants were charged with state drug trafficking and firearms offenses based on criminal complaints. During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. The law enforcement operation on Feb. 24, 2014, included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington businesses and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and the law enforcement operation.
To date, seven of the 13 federal defendants, including Isaac Anaya, have entered guilty pleas and are pending sentencing. Five of the federal defendants have entered not guilty pleas to the indictment; they are presumed innocent unless found guilty beyond a reasonable doubt.
The federal and state cases filed as a result of Operation “Brown Ice” were investigated by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorneys Reeve L. Swainston and Shana B. Long are prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Eugene, Oregon Man Sentenced on Tax ChargeRead the Press Release
DES MOINES, IA – On February 18, 2015, Jackie Pieter Boer, age 67, of Eugene, Oregon, was sentenced to nine months imprisonment by Judge Robert W. Pratt, for failing to file a tax return for the year 1984, announced United States Attorney Nicholas A. Klinefeldt.
Boer was originally indicted in the Southern District of Iowa in 1989, but failed to appear at his scheduled initial appearance and arraignment. For nearly twenty-five years, Boer was a fugitive, until he voluntarily contacted the United States Attorney’s Office to resolve his outstanding case. In addition to a nine month prison sentence, Boer was sentenced to one year of supervised release following his imprisonment. A $25,000 fine was also imposed.
This case was investigated by the Internal Revenue Service – Criminal Investigation, and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Drug Dealer Sentenced to 14 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Rasan Byrd, age 39, of Houston, Texas today to 14 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine and marijuana.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement and court documents, Byrd supervised the Arizona-based activities of a drug conspiracy in which large quantities of cocaine and marijuana were obtained in Arizona and shipped to Maryland. Byrd supervised several workers who weighed the drugs and then wrapped the cocaine and marijuana in plastic containers to avoid detection by law enforcement. He oversaw the delivery of drugs to a shipping company in Scottsdale, Arizona, which forwarded the drugs to his associates in Baltimore and other destinations on the east coast.
As a result of extensive surveillance, on April 22, 2013 law enforcement officers executed a search warrant at the residences of co-conspirators Harold and Josef Byrd, and Jerome Castle, as well as at a commercial building at 5819 Moravia Road in Baltimore that was used to store deliveries of drugs shipped from Arizona. Law enforcement seized 10 kilograms of cocaine from the residences of Josef and Harold Byrd; and approximately 350 pounds of marijuana shipped by Rasan Byrd from Arizona that had just been delivered to the commercial building. Jerome Castle was conducting counter-surveillance during the marijuana delivery at the commercial building and fled from police in a pick-up truck. Castle took the police on a high-speed chase at speeds exceeding 100 miles per hour, and was arrested only after he crashed his vehicle into other vehicles parked in a used car lot in Harford County. Rasan, Harold and Josef Byrd were also arrested, along with Maurice Jones.
In Arizona, over 500 pounds of marijuana and 16 kilograms of cocaine were seized from the shipping company. Between 2009 and April 22, 2013, approximately 88 shipments containing cocaine and marijuana were sent under the supervision of Rasan Byrd and others to the commercial building in Baltimore.
Brothers Harold Alexander Byrd, age 27, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 35, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy and were each sentenced to 10 years in prison.
Jerome Adolfo Castle, a/k/a Dontwon Burris, age 37, a Jamaican citizen residing in Pikesville, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to 14 years in prison. Castle was also ordered to forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.
Maurice Jones, age 60 of Baltimore, also has pleaded guilty to his role in the conspiracy and was sentenced to seven years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation and HSI-Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.
District Man Pleads Guilty to Federal Charges in Massive Identity Theft and Tax Fraud Scheme Admits Working with Others to Seek More Than $1.1 Million in Fraudulent RefundsRead the Press Release
WASHINGTON – James Nelson, 31, of Washington, D.C., has pled guilty to various crimes committed in a far-reaching identity theft and tax fraud scheme in which he and others filed fraudulent federal income tax returns seeking more than $1.1 million in refunds, the Justice Department announced today.
Nelson is among approximately a dozen people who have pleaded guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million.
The guilty plea, unsealed today, was announced by U.S. Attorney Ronald C. Machen Jr. of the District of Columbia, Principal Deputy Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington Division, Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of Treasury, and Special Agent in Charge Kathy A. Michalko of the U.S. Secret Service’s Washington Field Office.
Nelson pled guilty to conspiracy to defraud the United States with respect to claims, aiding and abetting in the making of false claims for refund, and aiding and abetting in fraud and related activity involving identification information. Under federal sentencing guidelines, Nelson faces an estimated range of 41 to 51 months in prison and a fine of up to $75,000 at his sentencing before the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia. In addition, as part of his plea agreement, Nelson must pay $636,026 in restitution to the IRS.
“James Nelson now joins numerous others who have pleaded guilty in this prosecution of a D.C.–based scheme involving at least 12,000 fake income tax returns,” said U.S. Attorney Machen. “Honest taxpayers – like those filing their returns this week – are victimized by these scammers who use stolen identities to generate fraudulent tax refunds and drain money from the U.S. Treasury. This prosecution is not over. We will remain aggressive in our efforts to investigate and prosecute tax refund fraud involving identity theft.”
“One of the Tax Division’s highest priorities is prosecuting individuals such as James Nelson and his co-conspirators, who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Principal Deputy Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations, and punish the offenders who view the Federal Treasury as their own personal bank account.”
“Perpetrators of identity theft schemes are motivated by greed, acting as if they are above the law and with total disregard for the consequences to the victims,” said Special Agent in Charge Kelly. “The actions of criminals, such as Mr. Nelson, create distressing hardships for many innocent taxpayers and have a devastating impact on the entire community.”
“Postal Inspectors are proud to join our federal law enforcement partners to bring this case to a successful resolution,” said Acting Inspector in Charge McGinnis. “By joining forces, we are able to bring justice to those who would misuse the U.S. mail in order to defraud innocent citizens and the U.S. government.”
“I am proud of the work done by our Office of Investigations, cooperating with other law enforcement organizations in detecting and deterring this fraud and protecting the integrity of the nation’s tax system,” said Assistant Inspector General Phillips.
“Our success in this case and similar investigations is a result of our close work with law enforcement partners,” said Special Agent in Charge Michalko. “The Secret Service worked closely with the Internal Revenue Service and the Department of Justice to share information and resources that ultimately brought James Nelson to justice. This case demonstrates there is no such thing as anonymity for those engaging in identity theft and fraudulent schemes.”
According to the government’s evidence, Nelson was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought since 2006, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia.
From December 2007 through January 2012, according to the government’s evidence, Nelson used his residential addresses, then in the District of Columbia, for the receipt of some of the fraudulently obtained tax refunds. He also recruited others to receive fraudulent refunds at their addresses. For example, Nelson paid one woman about $150 per check for each refund check delivered to her residential address in the District of Columbia.
Approximately 360 fraudulent federal income tax returns were filed with the IRS listing the addresses that were under Nelson’s control. The returns sought refunds of approximately $908,500. As a result, the IRS sent out 238 checks, totaling about $524,795, and 184 of those checks, totaling $432,804, were ultimately cashed.
Nelson also recruited others to negotiate at least 86 other refund checks, totaling approximately $203,222, causing a total intended loss to the U.S. Treasury of more than $1.1 million.
In announcing the plea, U.S. Attorney Machen, Principal Deputy Acting Assistant Attorney General Ciraolo, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Special Agent in Charge Michalko commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who are prosecuting the case.
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Detroit Real Estate Businessman Pleads Guilty to Tax and Bank FraudRead the Press Release
On Feb. 18, a Detroit man pleaded guilty in the U.S. District Court for the Eastern District of Michigan to obstructing and impeding the Internal Revenue Service (IRS) and conspiring to commit bank fraud, Principal Deputy Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
According to the information and other court documents, Richard Pierce failed to report over $9 million in gross business receipts during 2007 through 2013, derived from the various Detroit-area businesses that he operated and controlled, including Phoenix Real Estate Company, Phoenix Preferred Properties LLC, Detroit Matrix, First Metro Properties LLC, First Metro Real Estate Services LLC, Phoenix Office Plaza-II LLC, Rosedale/Grandmont Properties LLC, and RFP Ventures LLC. In addition, on Nov. 26, 2007, Pierce participated in a bank fraud scheme wherein he caused the submission of a false loan application to a mortgage lender on which he falsely reported that the buyer was paying $77,900 for a residential property without disclosing that the buyer received a $46,340 “kickback” from the seller.
Sentencing is scheduled for July 8 before U.S. District Court Judge Arthur J. Tarnow of the Eastern District of Michigan. Pierce faces a statutory maximum sentence of three years in prison for filing a false tax return and a statutory maximum sentence of 30 years in prison for conspiring to commit bank fraud, with maximum potential fines totaling $1.25 million.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation, who investigated the case, and Trial Attorneys Mark McDonald and Christopher O’Donnell of the Tax Division, who are prosecuting the case. She also thanked the U.S. Attorney’s Office in the Eastern District of Michigan for their assistance.
Deltona Man Indicted on Federal Child Pornography ChargesRead the Press Release
Orlando, Florida - United States Attorney A. Lee Bentley, III announces the return of an indictment charging Andrew Terryll Hudson (51, Deltona) with one count of distributing child pornography, one count of receiving child pornography, and one count of possessing child pornography.
According to the indictment, on December 29, 2014, Hudson distributed images and videos depicting child pornography to an undercover FBI agent using an Internet peer-to-peer network. A federal search warrant was subsequently executed at Hudson’s residence and all of his computer-related media was seized. Forensic analyses of the evidence revealed over 1,000 images and videos of child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Volusia County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dallas Man Sentenced to 14 Years in Prison for Sex Trafficking of a MinorRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Dallas man was sentenced Tuesday to 170 months in prison for transporting a minor to Bossier City, La., for prostitution.
Qualyn D. Mitchell, 31, of Dallas, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of sex trafficking of a minor. He was also sentenced to five years of supervised release. According to evidence presented at the September 16, 2014 guilty plea, law enforcement agents responded in an undercover capacity to an online advertisement for prostitution on November 21, 2013 and found a 16-year-old minor at a Bossier City hotel engaged in prostitution. Mitchell was found in an adjacent hotel room with another prostitute. Upon further investigation, it was learned that Mitchell met the minor a few days earlier and brought her from Dallas to Bossier City. He instructed the minor to give him the money she made from prostitution. Agents found $1,200 on Mitchell at the time of the arrest.
“Human trafficking, especially for the purpose of underage prostitution, is a heinous crime,” Finley stated. “This office is committed to prosecuting individuals who manipulate minors into committing sexual acts, often using the threat of violence, and who profit from this illegal and reprehensible conduct. I want to thank the Assistant U.S. Attorney, the FBI, and the other law enforcement agencies for their vigilance in investigating these crimes, which have resulted not only in criminal convictions, but in the rescue of numerous girls and young women from terrible environments.”
The FBI-Violent Crimes Against Children Task Force, Bossier City Police Department, and the Bossier City Marshal’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg 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 leave tips with the FBI at tips.fbi.gov and may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Columbia Man Pleads Guilty to His Role in Federal Drug ConspiracyRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Raheem Majeed, a/k/a “Mitch,” age 30, of Columbia, South Carolina has entered a guilty plea in federal court. Majeed plead guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Senior United States District Judge Cameron McGowan Currie accepted the plea and will impose a sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that beginning at least in or around June 2006, and continuing to up and including October 2009, Majeed and others conspired to possess with intent to distribute and to distribute cocaine and crack cocaine in the Columbia, South Carolina area. The indictment stemmed from a large investigation by the Federal Bureau of Investigation (FBI) in which over 120 defendants were charged following a series of court-authorized, FBI-monitored wiretaps over dozens of telephones in the Columbia area. The evidence showed that Majeed distributed over 500 grams of cocaine and over 28 grams of crack cocaine while a member of this conspiracy. Majeed was charged, along with a number of co-defendants, in 2011 and remained a fugitive until his arrest in 2014.
Mr. Nettles stated that Majeed, who has a prior felony drug conviction from Louisiana for possession with intent to distribute marijuana, faces a statutory mandatory minimum sentence of ten (10) years imprisonment with a maximum of life, a fine of $8,000,000, and a term of supervised release of at least eight (8) years following the term of imprisonment.
The case was investigated by the FBI Columbia Violent Gang Task Force. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Colombian National Sentenced to 360 Months in Prison for the Kidnapping and Murder of DEA Special Agent James “Terry” WatsonRead the Press Release
Second Colombian National Sentenced To 40 Months In Prison For Obstructing The Investigation
Two Colombian nationals were sentenced to prison yesterday in the Eastern District of Virginia for the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogotá, Colombia, on June 20, 2013, and subsequent concealment of those crimes.
Attorney General Eric Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Bill A. Miller, Director, U.S. State Department’s Diplomatic Security Service made the announcement.
“These two defendants bear responsibility for the kidnapping and murder of a courageous federal agent,” said Attorney General Eric Holder. “With this sentencing, they face justice for their involvement in this brutal crime. Our nation owes a great debt to Special Agent Terry Watson and his loved ones. We will never rest in our determination to honor his profound sacrifices, to pursue all who would threaten our brave men and women in law enforcement, and to carry on the vital work for which he gave his life.”
“Yesterday’s sentencing is another important step in bringing justice to those responsible for the murder of Special Agent Terry Watson,” said DEA Administrator Michele M. Leonhart. “Terry was a respected and dedicated DEA Special Agent and we will not rest until all those involved in this heinous act are sentenced. Our thoughts and prayers continue to go out to the Watson family as this case moves towards a final resolution.”
Edwin Gerardo Figueroa Sepúlveda, 39, of Bogotá, previously pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Yesterday, U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia sentenced Figueroa Sepúlveda to 360 months. Wilson Daniel Peralta-Bocachica, 31, also of Bogotá, previously pleaded guilty to obstruction of justice, and was sentenced to 40 months yesterday.
In the statement of facts filed with his plea agreement, Figueroa Sepúlveda admitted that he conspired to conduct “paseo milionarios” or “millionaire’s rides” in which he and his co-conspirators lured victims into taxi cabs, then kidnapped and robbed them. He admitted that on the evening of June 20, 2013, he was part of a six-person robbery crew that targeted Special Agent Watson. One of the members of the crew picked up Special Agent Watson in his taxi, while another drove a second taxi carrying the assailants. Figueroa Sepúlveda entered the taxi carrying Special Agent Watson and shocked him with a stun gun several times while another defendant stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
In a statement of facts filed with his plea agreement, Peralta-Bocachica admitted that in the days following the kidnapping and murder, he washed the taxi in which Special Agent Watson was stabbed, removing the victim’s blood from the back seat then discarding the cleaning rags, before turning the taxi over to the Colombian National Police.
A total of six defendants were charged for their involvement in the murder and kidnapping of Special Agent Watson, in addition to Peralta-Bocachica who was charged with obstruction of justice. Héctor Leonardo López, 34; Julio Estiven Gracia Ramírez, 32; Andrés Álvaro Oviedo García, 22; Omar Fabián Valdes Gualtero, 28; and Édgar Javier Bello Murillo, 28, previously pleaded guilty to conspiracy to kidnap and aiding and abetting the murder of an internationally protected person. On Dec. 12, 2014, López was sentenced to 25 years in prison, Gracia Ramírez was sentenced to 27 years in prison, and Oviedo García was sentenced to 20 years in prison. Omar Fabián Valdes Gualtero and Édgar Javier Bello Murillo are scheduled to be sentenced on April 15, 2015.
This case was investigated by the FBI, DEA and the Diplomatic Security Service, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
Collin County Man Sentenced for Foreign Currency Trading Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 55-year-old Plano, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Kevin G. White pleaded guilty on Dec. 11, 2013, to committing mail fraud in connection with a commodity trading fraud scheme and was sentenced to 97 months in federal prison on Feb. 18, 2015 by U.S. District Judge Marcia A. Crone. White was also ordered to pay restitution in the amount of $3,926,870.According to information presented in court, White operated Revelation Forex Fund (RFF), which was a fund that conducted foreign exchange currency trading. RFF had its offices in Plano. In order to lure investors to purchase partnership interests in RFF, White falsely overstated the past rate of return on investment for RFF, that RFF returns had been audited, and the length of time RFF had actually been in existence. RFF received investments totaling over $7.4 million. White admitted to using approximately $1.8 million of investor funds for non-investment purposes. The loss to investors was approximately $4 million.
White was ordered to surrender to the Bureau of Prisons on Apr. 6, 2015 to begin his sentence.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Charleston man pleads guilty to federal drug chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Jermain Santell Hill, 35, of Charleston pleaded guilty to possession of crack cocaine with the intent to distribute.
Hill admitted that on March 2, 2014, he was in possession of crack cocaine that he intended to distribute. He also admitted to possessing a loaded semi-automatic pistol while in possession of the crack cocaine.
Hill faces up to 20 years in federal prison and a fine of $1 million. He is scheduled to be sentenced on May 20, 2015.
United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
The case is being investigated by the Dunbar Police Department and United States Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
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Carmen Dozier Pleads Not Guilty to Inn Embezzlement and Bank FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Carmen Dozier, 38, of Middletown Springs, pleaded not guilty today in United States District Court in Burlington to federal fraud charges. U.S. Magistrate Judge John M. Conroy released Dozier on conditions pending trial, which has not been scheduled.
Last week, a federal grand jury in Rutland returned a two-count indictment charging Dozier with wire fraud and bank fraud. According to the indictment, in May 2013 Dozier was hired as the front desk manager at the Brandon Inn in Brandon, Vermont. Dozier prepared payroll records which were sent to the Inn's payroll processing company. She also took and confirmed reservations and paid vendors for goods and services for the Inn. The indictment charges that, beginning in July 2013 and continuing until mid-May 2014, Dozier embezzled about $70,000 from the Inn. She did this by falsifying the Inn's payroll records to inflate the regular and overtime hours she ostensibly worked, thereby causing the Inn's payroll processor to issue her paychecks or electronic direct deposits in amounts that exceeded her earned income. The indictment further charges that Dozier caused fraudulent transfers of Inn funds to her personal bank account at Lake Sunapee Bank. In addition, Dozier fraudulently used credit cards issued to the Inn's owners to make personal purchases, and fraudulently opened and used a BillMeLater PayPal service account.
The indictment accuses Dozier of also defrauding Lake Sunapee Bank by depositing, and attempting to deposit, about $20,000 worth of checks which were made payable to Dozier and which were purportedly signed by family members. In fact, the checks were written against out-of-state accounts which either were closed or did not contain sufficient funds. Dozier attempted to withdraw the apparent proceeds of the checks from Lake Sunapee Bank before the checks were dishonored.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty.If convicted, Dozier faces up to 30 years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Brandon Police Department and the Federal Bureau of Investigation.
Dozier is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
CEO of North Jersey Biotechnology Company Admits Violating Securities LawsRead the Press Release
NEWARK, N.J. – The president and CEO of Proteonomix Inc., a biotechnology company in Paramus, New Jersey, today admitted misleading the U.S. Securities and Exchange Commission (SEC) about his business dealings with his father-in-law, U.S. Attorney Paul J. Fishman announced.
Michael M. Cohen, 49, of West Orange, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of certifying false statements with the SEC.
According to documents filed in this case and statements made in court: Proteonomix performed stem cell research and developed cosmeceutical products. Cohen’s father-in-law was the president of Nancyco of NY Inc., Joe & Sam of New York Inc., Mollyco of NY Inc., and JSMNM Inc. (collectively, the “FIL Companies”) that purportedly performed work for Proteonomix in exchange for Proteonomix shares.
As the president, CEO, and chief financial officer for Proteonomix, Cohen was required to accurately disclose the company’s financial information to the investing public. SEC regulations require disclosure of “related-party transactions” involving immediate family members with a direct or indirect material interest. Cohen admitted he exercised control over the FIL Companies’ bank and brokerage accounts and failed to disclose they were related parties under SEC regulations. In a September 2012 filing with the SEC, Proteonomix and Cohen knowingly failed to disclose that an agreement between Proteonomix and Mollyco, in which $2 million in debt was converted into shares of Proteonomix stock, was a related-party transaction.
The false statements count to which Cohen pleaded guilty carries a maximum potential penalty of 10 years in prison and a $1 million fine. Sentencing is scheduled for May 27, 2015.
The SEC today filed a civil complaint against Cohen.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and SEC’s Division of Enforcement, under the direction of Associate Director Antonia Chion, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Economic Crimes Unit in Newark.
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Defense counsel: Jacob Frenkel Esq., Baltimore, Maryland.
Broward Resident Convicted for his Involvement in Extensive Tax Refund Fraud SchemeRead the Press Release
After a seven-day trial, a federal jury yesterday convicted Vory V. Copeland, 40, of Miramar, Florida, for his involvement in a tax refund fraud scheme that resulted in the filing of over 150 fraudulent tax returns and the cashing of numerous fraudulently-obtained tax refund checks.
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.
As shown at trial, between January 2010 and April 2010, Copeland and his co-conspirators filed numerous fraudulent tax returns, including tax returns based on stolen personal identification information, and cashed many of the resulting fraudulently-obtained tax refund checks at a Wachovia bank in Miami Gardens, Florida. Victims testified at trial that they were not aware that tax returns had been filed by the defendant on their behalf, using their personal information, and that they had not authorized the defendant nor his co-conspirators to file the fraudulent tax returns or cash the resulting tax refund checks.
At sentencing, which is currently set for April 29, 2015, at 3:00 p.m., before U.S. District Judge Joan A. Lenard, Copeland faces a maximum term of 86 years in prison.
Mr. Ferrer commended the investigative efforts of the IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorneys John Gonsoulin and John Byrne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn Man Charged with Conspiracy to Bring over 100 Grams of Crack Cocaine and 40 Grams of Heroin to Rutland for DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Alvin Kinard (a.k.a. (“Baby”)), 25, of Brooklyn, New York, has been charged in a conspiracy to distribute heroin and 28 grams or more of crack cocaine in the Rutland, Vermont area. Kinard pled not guilty before U.S. Magistrate Judge John Conroy to the charges against him. Judge Conroy ordered that Kinard be detained pending trial in light of Kinard’s prior criminal record and record of failing to appear for prior hearings.
According to the government’s motion for pre-trial detention, on September 9, 2013, the New York State Police stopped a vehicle for a seat belt violation in which Kinard was a passenger. The New York State Police seized over 100 grams of crack cocaine and approximately 40 grams of heroin from the driver and another passenger in the vehicle. The government alleges that these drugs actually belonged to Kinard and he intended to take them to the Rutland, Vermont area to distribute them.
The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If Kinard is convicted, he faces a mandatory minimum five years of imprisonment and a maximum possible term of imprisonment of forty years.
The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella. Kinard is represented by Mary Kehoe, Esq. of Burlington. The investigation was conducted by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration.
Brattleboro Man Sentenced for Heroin SaleRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on February 17, 2015, Lamar James, 24, of Brattleboro, was sentenced in United States District Court to seven months imprisonment on his guilty plea to a charge of distribution of heroin. United States District Judge Geoffrey W. Crawford also ordered James to serve three years supervised release following his incarceration. James had been detained since his July 1, 2014 arrest.
According to court records, the Vermont Drug Task Force used a confidential informant to make three controlled purchases of heroin from James in Brattleboro during April 2014. On June 18, 2014, a federal grand jury returned an indictment charging defendant with distribution of heroin based on two of the controlled purchases. On December 15, 2014, James entered a guilty plea to Count Two of the Indictment arising out of his sale of fifty bags of heroin on April 29, 2014 to the informant working for the Task Force.
Acting United States Attorney Eugenia A.P. Cowles commended the Task Force for its investigation and its ongoing efforts to combat drug trafficking. Cowles added, “This office will continue to work with the federal, state and local law enforcement agencies to investigate and aggressively prosecute those who poison our children and neighbors with heroin and other illicit drugs.” Burlington Attorney David J. Williams represented James. The case was prosecuted by Assistant United States Attorney Craig S. Nolan.
Blue Springs Man Pleads Guilty to Producing Child Porn After Being Caught on Nanny CamRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man who was caught sexually assaulting a toddler on a nannycam pleaded guilty in federal court today to producing child pornography.
Jeffrey Laurence Treta, 47, of Blue Springs, pleaded guilty before U.S. District Judge Beth Phillips to two counts of producing child pornography, two counts of producing child obscenity, one count of possessing child pornography and one count of obstructing justice.
Treta was living with his estranged wife and babysitting a 21-month-old child identified as Jane Doe #1 while his wife was away from the house on Jan. 29, 2013. Treta’s wife had installed a nannycam in the master bedroom, which was triggered whenever anyone entered the room. The nannycam recorded Treta bringing Jane Doe #1 into the bedroom, laying the toddler down on the bed, and using his cell phone to record himself sexually assaulting the child victim while he lay in bed with her.
Treta’s wife and son gave law enforcement investigators a SIM card they had innocently retrieved from Treta’s cell phone on a prior occasion. The SIM card contained a video and images of similar child pornography dated 10 days prior to Treta’s recorded assault of Jane Doe #1. Some of the images of this assault were transferred from Treta’s cell phone to his laptop computer.
Treta’s laptop also contained images of two more victims, about 10 years old, identified as Jane Doe #2 and Jane Doe #3. Those images were Photoshopped to make it appear as though the children were engaged in sexually explicit conduct.
Treta’s laptop contained hundreds of images from child modeling, nudist and other Web sites, many of which constituted child pornography. Many of the images were of prepubescent children (including toddlers) and a few depict sadistic activity. Other images on Treta’s laptop resembled the Photoshopped images of Jane Doe #2 and Jane Doe #3.
Treta destroyed evidence in anticipation of a police investigation of sexual abuse and child pornography. During the few minutes after police officers had been called, but before they arrived at his residence, Treta deleted a large number of items from his laptop, including images and videos.
Under federal statutes, Treta is subject to a mandatory sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Belle Chasse Man Pleads Guilty to Misuse of a Mariner LicenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WILLIE ENGLISH, age 41, of Belle Chasse, pled guilty today to one-count Indictment, charging him with misuse of a federal license.
According to the court record, in November 2008, ENGLISH used a fake U.S. Coast Guard Merchant Mariner’s License purporting to be a Master of vessels not more than 100 gross tons, to maintain employment as a vessel captain at Bud’s Boat Rental in Belle Chase, Louisiana. ENGLISH admitted he made the license while he was a deckhand onboard another vessel for another employer.
ENGLISH faces not more than five years imprisonment and a $250,000 fine. U.S. District Judge Mary Ann Vial Lemmon set sentencing for May 14, 2015.
U.S. Attorney Polite praised the work of the Coast Guard Investigative Service in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Baltimore Woman Sentenced to 4 Years in Prison in Credit Card Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Wanisha D. Coates, age 25, of Baltimore, today to four years in prison followed by five years of supervised release for bank fraud conspiracy and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; U.S. Marshal Johnny Hughes; Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police; Fairfax County, Virginia, Police Chief Edwin C. Roessler, Jr.; Easton Police Department Chief David A. Spencer; Anne Arundel County Police Chief Tim Altomare; and Talbot County State’s Attorney Scott G. Patterson.
According to her plea, from at least the winter of 2012 to July 2014, Coates and others created counterfeit credit cards, using stolen or otherwise compromised credit and debit card numbers belonging to others. They encoded the stolen account information onto credit and stored value cards which were then used to obtain money and credit from banks and credit unions. These proceeds were used to buy consumer products, including designer shoes by Gucci, Louis Vuitton and Christian Louboutin, and designer clothes from Neiman Marcus.
On November 2, 2012, Coates and her co-conspirators used altered credit cards to make fraudulent purchases at a Target in Fairfax, Virginia. Coates was arrested and prosecuted in Fairfax County, Virginia for credit card fraud. She failed to appear for her court hearing, and a bench warrant was issued for her arrest.
On April 2, 2013, Coates was stopped by a Maryland State trooper for a traffic violation in Centreville, Maryland. The Trooper smelled burnt marijuana and searched the vehicle, seizing several gift cards, credit cards and “ReloadIt” stored value cards that were altered and rewritten with compromised account information.
On January 11, 2014 Easton Police officers arrested co-conspirator Domenique Miller and another co-conspirator after they tried to buy multiple gift cards at a Staples store in Easton. A number of credit cards fraudulently re-encoded with stolen or compromised account information were seized, along with a small amount of marijuana. Miller advised police that his girlfriend was staying at an Easton motel. Officers arrived at the motel room and were overwhelmed by the odor of raw and burnt marijuana as they entered. Present inside the room were the girlfriend and Coates. Coates identified herself as “Wanda C. Redd,” who is in fact her mother. Coates was arrested. Officers seized 44 credit or stored value cards, many of which had been fraudulently altered. Coates appeared at the Talbot County District Court for a hearing relating to this incident, and again assumed the identity of Wanda Redd.
On March 13, 2014, Anne Arundel County Police responded to a call from a man at a motel in Linthicum, Maryland who said he had been cut in the face with a knife by Coates. Police found Coates and the man outside of their motel room. Police seized approximately 27 credit and gift cards, some visibly altered, and a device for reading, erasing and writing data on magnetic strips of credit cards.
On May 22, 2014, the Virginia state case against Coates was dismissed and Coates was taken into federal custody on charges of access device fraud. She was transported to federal court in Baltimore for an initial appearance, and ordered released on the condition that she reside at a halfway house awaiting additional court proceedings. She was also ordered not to leave Maryland. However, on June 4, 2014, Coates left the halfway house for a physical examination and never returned. A federal arrest warrant was issued, based on her absconding from court ordered supervision at the halfway house.
On July 23, 2014 the U.S. Marshals Service Regional Fugitive Task Force located Coates at a motel in Belleville, New Jersey. Task force officers arrived at the motel room, which smelled strongly of burnt marijuana, and arrested Coates. Officers seized marijuana, a credit card embossing device, electronics, and approximately 100-150 stored value cards or credit cards, some of which had been fraudulently re-encoded with stolen credit card information.
The loss attributable to Coates during the course of the conspiracy is between $120,000 and $200,000 and involves up to 49 victims.
Domenique R. Miller, age 20, of Newnan, Georgia, previously pleaded guilty to his participation in the scheme and awaits sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, U.S. Secret Service, U.S. Marshals Service, Easton Police Department, Maryland State Police, Anne Arundel County Police Department, Fairfax (Virginia) County Police Department, Talbot County State’s Attorney’s Office and the U.S. Marshals Service Regional Fugitive Task Force for their work in the investigation and related prosecution. Mr. Rosenstein praised the Fairfax County (Virginia) Commonwealth’s Attorney’s Office and Lyndhurst (New Jersey) Police Department for their assistance in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
Arlington Heights, Illinois, Company and its Owner and Employee Charged with Illegal Export and Import of Military ArticlesRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Gary Hartwig of Homeland Security Investigations Chicago, Special Agent in Charge James C. Lee of the Internal Revenue Service’s (IRS) Chicago Office and Special Agent in Charge Brian Reihms of the Department of Defense Criminal Investigative Service in Chicago announced today that an Arlington Heights, Illinois, company, its president and a former employee were indicted on federal charges for unlawfully exporting and importing military articles, including components used in night vision systems and an M1A1 Abrams tank, which is the main battle tank used by the U.S. Armed Forces. The defendants were charged in an indictment returned by a federal grand jury in January and made public this week.
Vibgyor Optical Systems Inc., a company located in Arlington Heights, purported to manufacture optics and optical systems, including items that were to be supplied to the U.S. Department of Defense (DOD). Instead of manufacturing the items in Illinois, as it claimed, Vibgyor illegally sent the technical data for, and samples of, the military articles to manufacturers in China, then imported the items from China to sell to its customers—including DOD prime contractors. Bharat “Victor” Verma, 74, of Arlington Heights, Vibgyor’s president, and Urvashi “Sonia” Verma, 40, of Chicago, a former Vibgyor employee and owner of a now-defunct company that operated as a subcontractor for Vibgyor, were also charged in the indictment.
According to the indictment, between November 2006 and March 2014, the defendants conspired to defraud the United States and violate the Arms Export Control Act (AECA) and International Traffic in Arms Regulations. The AECA prohibits the export or import 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. Under the International Traffic in Arms Regulations, any person seeking to import items designated as defense articles on the United States Munitions Import List is required to obtain a permit to do so from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Vibgyor won subcontracts to supply optical components and systems to DOD prime contractors by misrepresenting the location of manufacture of the items it supplied. Bharat Verma falsely claimed that the items Vibgyor supplied were manufactured in domestically, when they actually had been manufactured in China, based on information illegally exported to Chinese manufacturers. In addition to illegally providing technical data for a military item to China, Urvashi Verma attempted to ship an example of one of the military items to the Chinese manufacturer.
“The Arms Export Control Act and the International Traffic in Arms Regulations are vital to preventing embargoed countries from gaining access to our sensitive military technology, and to ensuring that our armed forces are not issued substandard equipment,” said U.S. Attorney Fardon. “Where companies and individuals seek to violate the AECA and the International Traffic in Arms Regulations, we will not hesitate to act."
Vibgyor, Bharat Verma and Urvashi Verma are charged with one count of conspiracy to violate both the AECA and the International Traffic in Arms Regulations; one count of conspiracy to defraud the United States—each offense is punishable by up to five years’ imprisonment—and one count of violating the AECA, with a maximum possible penalty of 20 years in prison and a fine up to $1,000,000. Vibgyor and Bharat Verma were also charged with international money laundering, an offense with a maximum possible sentence of 20 years’ imprisonment and a fine up to $500,000. The defendants are scheduled to be arraigned Friday, Feb. 20, 2015, before U.S. Magistrate Judge Sidney I. Schenkier.
The case is being prosecuted by Trial Attorney Casey Arrowood of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Diane MacArthur, Bolling W. Haxall and Shoba Pillay of the Northern District of Illinois.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Arlington Heights Company and Its Owner and Employee Charged with Illegal Export and Import of Military ArticlesRead the Press Release
CHICAGO — An Arlington Heights company, its president, and a former employee were indicted on federal charges for unlawfully exporting and importing military articles, including components used in night vision systems and on the M1A1 Abrams tank, which is the main battle tank used by the U.S. Armed Forces. The defendants were charged in an indictment returned by a federal grand jury in January and made public this week.
VIBGYOR OPTICAL SYSTEMS, INC., a company located in Arlington Heights, purported to manufacture optics and optical systems, including items that were to be supplied to the U.S. Department of Defense (DOD). Instead of manufacturing the items domestically, as it claimed, VIBGYOR illegally sent the technical data for, and samples of, the military articles to manufacturers in China, then imported the items from China to sell to its customers—including DOD prime contractors. BHARAT “Victor” VERMA, 74, of Arlington Heights, VIBGYOR’s president, and URVASHI “Sonia” VERMA, 40, of Chicago, a former VIBGYOR employee and owner of a now-defunct company that operated as a subcontractor for VIBGYOR, were also charged in the indictment.
According to the indictment, between November 2006 and March 2014, the defendants conspired to defraud the United States and violate both the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR). The Arms Export Control Act prohibits the export or import 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. Under the International Traffic in Arms Regulations, any person seeking to import items designated as defense articles on the United States Munitions Import List is required to obtain a permit to do so from the Bureau of Alcohol, Tobacco, Firearms and Explosives. VIBGYOR won subcontracts to supply optical components and systems to DOD prime contractors by misrepresenting the location of manufacture of the items it supplied. BHARAT VERMA falsely claimed that the items VIBGYOR supplied were manufactured domestically, when they actually had been manufactured in China, based on information illegally exported to Chinese manufacturers. In addition to illegally providing technical data for a military item to China, URVASHI VERMA attempted to ship an example of one of the military items to the Chinese manufacturer.
“The Arms Export Control Act and the International Traffic in Arms Regulations are vital to preventing embargoed countries from gaining access to our sensitive military technology, and to ensuring that our armed forces are not issued substandard equipment,” stated Zachary T. Fardon, United States Attorney, after the charges were announced. “Where companies and individuals seek to violate AECA and the ITAR, we will not hesitate to act.”
VIBGYOR, BHARAT VERMA, and URVASHI VERMA are charged with one count of conspiracy to violate both the Arms Export Control Act and the International Traffic in Arms Regulations; one count of conspiracy to defraud the United States—each offense punishable by up to five years’ imprisonment—and one count of violating the Arms Export Control Act, with a maximum possible penalty of 20 years in prison and a fine up to $1,000,000. VIBGYOR and BHARAT VERMA were also charged with international money laundering, an offense with a maximum possible sentence of 20 years’ imprisonment and a fine up to $500,000. The defendants are scheduled to be arraigned Friday, February 20, at 1:00 p.m. before U.S. Magistrate Judge Susan E. Cox at the Everett McKinley Dirksen United States Courthouse in Chicago.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Gary Hartwig, Special Agent-in-Charge of Homeland Security Investigations Chicago, James C. Lee, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service, and Brian Reihms, Special Agent-in-Charge of the Department of Defense Criminal Investigative Service in Chicago.
The government is being represented by Assistant United States Attorneys Diane MacArthur, Bolling W. Haxall, and Shoba Pillay and Trial Attorney Casey Arrowood of the Justice Department’s National Security Division.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Annual African American Heritage Celebration at the Baton Rouge Federal CourthouseRead the Press Release
BATON ROUGE, LA – Chief Judge Brian A. Jackson, Judge Shelly D. Dick, Judge John W. deGravelles, and Judge James J. Brady of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Twentieth Annual Federal Courthouse African-American History Month Program. The program will be held at 10:00 a.m. on Thursday, February 26, 2015, in Courtroom 1, on the third floor of the federal courthouse.
The featured guest speaker will be the Honorable Chief Justice Bernette Joshua Johnson of the Louisiana Supreme Court. Chief Justice Johnson grew up in New Orleans, Louisiana and was elected Associate Justice of the Louisiana Supreme Court in 1994. She was re-elected, without opposition, in 2000 and 2010.
Musical entertainment will be provided by Mr. Everrett Parker and the Greater Mount Carmel Male Quartet.
Members of the public and the press are invited to attend. For further information, please contact Michael J. Jefferson, Assistant United States Attorney, at (225) 389-0443.
Angolan National Pleads Guilty to Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Lorena Midia, 33, most recently a resident of Toronto, Ontario, Canada, and a native of Angola, pleaded guilty before Chief U.S. District Court Judge William M. Skretny to aggravated identity theft. The charge carries a mandatory minimum penalty of two years in prison.Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that the defendant applied for a United States Passport on October 29, 2010, at the Buffalo Passport Office Agency. Midia fraudulently claimed to a United States citizen named Tabitha Humber by presenting a social security card, New York State birth certificate, and New York State Benefit ID Card issued in the name of Humber. After being indicted, Midia was arrested in Toronto by Canadian authorities on August 1, 2013 and formal extradition proceedings led to the defendant being brought to the United States for prosecution.
The conviction is the result of an investigation on the part of Special Agents of the United States Department of State, Diplomatic Security Service, under the Direction of Special Agent In-Charge William Ferrari, and the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan.
Sentencing is scheduled for June 24, 2015 before Judge Skretny.
Andrews Pleads Guilty to Production of Child Pornography; Plea Agreement Includes Stipulated 25-Year SentenceRead the Press Release
ST. GEORGE - Brenton Andrews, age 27, of St. George, pled guilty Tuesday in U.S. District Court in St. George to one count of production of child pornography. Andrews admitted that he persuaded a child under the age of 18 to engage in sexually explicit conduct which he recorded.
The plea agreement includes an agreed upon sentence of 25 years in federal prison. The prison sentence will be followed by a term of supervised release of not less than 20 years. The sentencing agreement is subject to the approval of U.S. District Judge Ted Stewart, who will impose sentencing in the case on July 7, 2015, at 10 a.m. in St. George.
Andrews was charged with one count of production of child pornography in a Felony Information filed in December following an investigation by the St. George Police Department and U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations special agents.
According to the plea agreement, Andrews made video recordings of the child while the child was nude and produced lewd images of the child.
As a part of the plea agreement, Andrews agreed to forfeit a laptop computer, other computer equipment, and photographs, videos and other visual depictions.
State charges involving alleged conduct with the child are pending.
Anchorage Woman Charged with 20 Counts of Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman has been charged with 20 counts of Bank Fraud and Aggravated Identity Theft for falsely altering stolen checks and cashing them at banks around Anchorage.
Denae Sullivan, 32, of Anchorage, is charged in a 20-count indictment with a scheme to defraud banks using checks stolen from the mail and from vehicle break-ins. She is further charged, as part of the scheme, with stealing the identities of individuals in Anchorage and Illinois. The investigation is one of several targeted by the United States Postal Inspection Service to address a recent increase in mail theft rings in the Anchorage area.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Sullivan cashed checks at banks around Anchorage that had been stolen from victims’ mailboxes in Anchorage. She then altered the payee to match a driver’s license she obtained from a victim, and used that stolen identification to negotiate the stolen checks. The stolen checks included payments for rent, charitable donations to a church, and blank checks stolen during vehicle break-ins. Sullivan victimized more than 10 individuals and organizations for a total loss of more than $20,000.
The law provides for a maximum sentence of 30 years in prison and a fine of $1 million or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service and the Anchorage Police Department conducted the investigation leading to the indictments in the case.
Albuquerque Man Pleads Guilty to Federal Identity Theft ChargeRead the Press Release
ALBUQUERQUE – David William Welbig, 66, of Albuquerque, N.M., pleaded guilty this morning in Albuquerque federal court to an aggravated identity theft charge. The charge to which Welbig pleaded guilty today arose out of his efforts to evade arrest on interstate transportation of stolen securities charges filed April 1991 in the U.S. District Court for the District of Colorado.
Welbig was indicted on Nov. 4, 2014, and charged with using a passport obtained by a false statement, and aggravated identity theft. The indictment alleged that in July 2014, Welbig concealed his identity and sought to evade arrest by using a passport issued to a person who was deceased. It also alleged that Welbig committed aggravated identity theft by using the identification, namely, a passport, of another person. Welbig was charged with committing these offenses in Bernalillo County, N.M.
During this morning’s proceedings, Welbig pled guilty to Count 2 of the indictment, charging him with aggravated identity theft. Welbig admitted that in order to evade arrest by law enforcement officials on an outstanding indictment and arrest warrant issued in the District of Colorado in 1991, he used the identification information of a deceased person to obtain a U.S. passport. At sentencing, Welbig faces a statutory penalty of two years in federal prison and a year of supervised release following his term of imprisonment. His sentencing hearing has yet to be scheduled.
The indictment filed against Welbig in the District of Colorado was transferred to the District of New Mexico in Sept. 2014. In Oct. 2014, Welbig entered guilty pleas to all three counts of interstate transportation of stolen securities in the indictment. Welbig is scheduled to be sentenced on those charges on April 14, 2015, and faces a maximum statutory penalty of ten years in prison followed by three years of supervised release on each of the three counts.
This case was investigated U.S. Department of State’s Diplomatic Security Service and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Accounting Firm Bookkeeper Sentenced to Prison for Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 27 months imprisonment, followed by three years supervised release, and $270,085.46 in restitution to Cybergenetics Corporation, on her conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Mary L. Schneir, 42, of Bethel Park, Pa.
Schneir was employed as the bookkeeper and office manager at Karna C. Goldsmith, C.P.A., an accounting firm located at Summerfield Commons Office Park, Suite 611, 2555 Washington Road, in Upper St. Clair, Pa. Schneir devised and executed a fraud scheme during her tenure as an employee of Goldsmith, whereby she used funds of Goldsmith clients to make online payments to her personal credit card and mortgage accounts. To hide her activity, Schneir would regularly move money between the bank accounts of Goldsmith’s clients, to which she had access. Specifically, on Feb. 28, 2013, Schneir caused an electronic transfer of funds in the amount of $54,145.36, from the account of Cybergenetics Corporation, to an A.L. Brourman Associates, Inc. account maintained at Citizen’s Bank. At the time Schneir’s scheme was detected, Cybergenetics accounts were the only ones remaining affected. The total loss to the business was in excess of $270,000.
In imposing the sentence, the Court admonished Schneir for causing significant financial harm to Cybergenetics, which threatened the viability of the business and the work of its employees.
Assistant United States Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and detectives of the Allegheny County District Attorney’s Office for the investigation leading to the successful prosecution of Schneir.
7th Street Gang Member Pleads Guilty to Rico Conspiracy; Admits Role in Murder of Rival Gang MemberRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Uda Hidalgo, 31, of Buffalo, pleaded guilty to racketeering conspiracy before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison and a $250,000 fine.Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2012, Hildalgo was a member of the Cheko’s Crew/7th Street Gang which was responsible for drug trafficking and violent crime on Buffalo’s West Side. During this time, as a part of the rivalry with the 10th Street Gang, the defendant participated with others in the murder of 10th Street Gang associate Eric Morrow. Hildalgo provided one of the firearms used by other gang members to shoot and kill Morrow on August 11, 2009. The defendant also sold illegal narcotics on Buffalo’s West Side.
The please is the culmination of an investigation on the part of Special Agents of the FBI, New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge James S. Higgins, New York Field Division.
Sentencing is scheduled for May 26, 2015 at 12:30 p.m. before Judge Arcara.
25 Individuals Indicted for Drug Trafficking at Villa Envangelina Public Housing ProjectRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, February 18, a federal grand jury in the District of Puerto Rico returned an indictment against 25 defendants charged with conspiracy to possess with intent to distribute controlled substances in the municipality of Manatí, PR, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation is in charge of the investigation, with the collaboration of the Puerto Rico Police Department, specially the Arecibo Strike Force, and the US Postal Inspection Service.
The 25 defendants are: Héctor Omar Figueroa-Quiñonez, aka “Omaki”; Juan Serpa- Candelaria, aka “Pablo”; Ángel M. Ortiz-De Jesús, aka “El Gallo”; Miguel Torres-Cruz, aka “Black Tattoo”; Jonathan J. Ortiz-Salgado, aka “Cochi”; Luis E. Rivera-Pares, aka “Bebo”; Francisco J. Martínez-Moreno, aka “Mickey Bay”; Christian Mercado-Figueroa, aka “Gordo”; José M. Pizzaro-Mezquita; Clem J. Martínez-Natal, aka “Clen”; Mirna Liz Torres-Pérez, aka “Lizzi”; Elvin Omar Millàn-Huertas; José M. Rodríguez-Lugo, aka “Bizcocho”; Adonis Rivera Carrero, aka “Lobo”; David Ortero-Lugo, aka “Davo”; Jorge A. Torres-Figueroa, aka “Jorgie”; Victor Manuel Ortiz-Salgado, aka “El Viejo”; Billy Rosario-Maldonado, aka “Billi”; Ángel Xavier Gonzàlez-Nieves, aka “Xavi”; Melvin Leonardo Sepa-Sepulveda, aka “Hueso”; Hiram Díaz-Meléndez; Kelvin Candelaria-Ortiz, aka “Kelvin Gordo”; John Félix Gonzàlez-Pérez, aka “Palleta”; Juan Carlos Matos-Santos, aka “Cani”; and Félix Aldea Ferrer, aka “Chino Milla”.
The indictment alleges that beginning in 2010, the organization distributed cocaine, heroin, crack, marihuana, Oxycodone (commonly known as “Percocet”), and Alprazolam (commonly known as “Xanax”) within 1,000 feet of a real property comprising housing facility owned by a public housing authority, at the Villa Evangelina Public Housing Project, all for financial gain and profit.The 25 co-conspirators had many roles in order to further the goals of the conspiracy. According to the indictment this organization had up to six leaders/drug point owners/enforcers, one narcotics supplier, at least four runners, a facilitator and firearms supplier, eleven sellers, an armed look-out and one facilitator. Six of the individuals are facing one count of possessing firearms in furtherance of a drug trafficking crime. The defendants would use force, violence, threats and intimidation in order to discipline members of their own organization.
“I commend our law enforcement partners for their hard work and efforts in this investigation,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to pursue the prosecution of members of drug trafficking organizations, in order to provide a safer environment for the law abiding families residing in Puerto Rico’s public housing projects.”
“The FBI’s message is clear and unequivocal. We will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
Eliezer Julian, Domicile Coordinator, US Postal Inspection Service stated: “The US Postal Inspection Services seeks to identify, disrupt, and dismantle drug trafficking organizations that attempt to utilize the US Mails. We have strengthened our relationship with our federal and state law enforcement partners. This inter-agency cooperation has had an impact on DTO's operating in Puerto Rico.”Assistant U.S. Attorney Edward Veronda is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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18 February 2015
“Enforcer” for Cherry Hill Gang Sentenced to 18 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Antione White, age 26, of Baltimore, today to 18 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, White is a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
White was known as an “enforcer” in the UDH group who was responsible for committing robberies on behalf of the group, possessing firearms and shooting at rivals. White admitted that he committed armed robberies with fellow UDH members and possessed firearms which were used by the UDH organization to shoot rivals and protect their territory. On May 25, 2012, White was pulled over while driving a vehicle with his girlfriend and two other UDH members. Officers found a 380 semi-automatic handgun loaded with five 9mm rounds with an obliterated serial number under the driver’s seat. Ballistics comparisons revealed that this gun matched the cartridge casings recovered from the May 11, 2012 scene of the shooting of Little Spelman member Warren Jones a/k/a Pluck, in the 800 block of Bridgeview Road in Cherry Hill. White admitted to two shootings in which the victims, one of whom was a rival gang member, were wounded.
White admitted that as a member of UDH he also sold crack cocaine, heroin and other narcotics with UDH members. White sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill, where White and others also stored firearms, which were used communally by UDH members. On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.
During his participation in the UDH drug conspiracy, White was responsible for distributing in excess of 840 grams of crack cocaine.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Seema Mittal, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Westchester Man Sentenced to 50 Years in Prison for Engaging in, and Videotaping, Sexual Activity with Minors and for Transporting His Homemade Videotapes to Recipients Outside of New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that RICHARD DINIZO was sentenced in White Plains federal court to 50 years in prison for engaging in sexual activity with seven different minors, all under the age of 11 at the time of the sexual activity, for videotaping the sexual abuse, and for transporting videos depicting DINIZO engaging in sexual activity with minors to recipients outside of New York. DINIZO pled guilty in May 2014 before United States District Judge Vincent Briccetti, who also imposed today’s sentence.
U.S. Attorney Preet Bharara said: “This case underscores the urgent need for law enforcement to continue its efforts to protect children from those who prey on them. Today’s 50-year sentence is a measure of how reprehensible is the conduct of those who will sexually exploit children. We will use every tool available to law enforcement to investigate, prosecute and punish those who sexually abuse children.”
According to documents filed in this case and statements made in related court proceedings:
In March of 2013, a witness provided a camera memory card, discarded by DINIZO in or about August 2012, to law enforcement. The memory card contained a series of videos made in 2009 and 2010 depicting DINIZO and a girl under the age of 11 (“Victim 1”) engaging in sexually explicit activity. DINIZO used trickery and deceit in order to manipulate Victim 1 into engaging in the sexual activity captured on the videos.
Thereafter, during the course of the investigation, additional evidence was recovered from DINIZO revealing additional videos – made by DINIZO between 2007 and 2010 – and additional victims. Ultimately, law enforcement identified seven different victims, all under the age of 11at the time of the abuse. With all seven victims, DINIZO used trickery and deceit. In many instances, DINIZO recorded the sexual abuse using multiple cameras simultaneously. The different cameras captured the abuse from different vantage points.
DINIZO transported his homemade videos to recipients outside New York. His video files have been recovered in numerous law enforcement investigations throughout the country and internationally. Until DINIZO’s arrest, the National Center for Missing and Exploited Children (“NCMEC”), which receives child pornography files recovered by law enforcement, had not been able to identify the girls depicted in the videos and had not been able to identify the place at which the abuse occurred.
In addition to the 50-year prison term, DINIZO, 60, of Cortlandt Manor, New York, was
sentenced to a life term of supervised release.
On December 12, 2013, DINIZO pleaded guilty to three counts of Predatory Sexual Assault Against a Child in Westchester County Supreme Court. On February 18, 2014, DINIZO was sentenced to 25 years to life in prison.
Mr. Bharara praised the efforts of Immigration and Customs Enforcement’s Homeland Security Investigations, the Putnam County District Attorney’s Office, the Putnam County Sherriff’s Office, the Westchester County District Attorney’s Office, the New York State Police, and NCMEC in connection with this investigation.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
West Salem Man Sentenced to 14 Years in Prison for Methamphetamine OffenseRead the Press Release
Follow @SDILNewsDillion Wayne Bailey, 30, of West Salem, Illinois, was sentenced today in United States District Court in Benton to a 14 year term of imprisonment for possessing with intent to distribute 2 ounces of highly pure methamphetamine (commonly known as “crystal” or “ice”), announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Bailey was charged with that offense by a Federal Grand Jury on July 8, 2014, and pled guilty to it on October 23rd. The offense occurred on June 13, 2014, in White County.
Evidence introduced in support of the guilty plea and sentence showed that on June 13th Bailey was stopped by a Grayville, Illinois, Police Department officer for a traffic violation. After an Edwards County Sheriff’s Department drug detection dog alerted to the presence of narcotics in Bailey’s vehicle, Bailey attempted to flee the scene in his vehicle. Bailey struck the officer with his car which forced the officer onto the hood to avoid being ran over. Bailey proceeded across a 2 block long parking lot with the officer still on his hood. Bailey ignored the officer’s commands to stop until the officer was able to draw and point his service weapon. Bailey continued to resist arrest, forcing officers to deploy the canine. After Bailey was subdued, 2 ounces of ice, a bag of glass smoking pipes, numerous small unused plastic baggies, and a digital scale were found in Bailey’s vehicle. Subsequent laboratory testing revealed that the methamphetamine was 100% pure. A search of Bailey’s pockets revealed $2,131 in cash.
In addition to the 14 year prison sentence, Bailey was ordered to pay fines and special assessments totaling $300 to the United States and was placed on a 3 year term of supervised release to follow his incarceration. Following his sentencing, Bailey was returned to the custody of the United States Marshal, where has been held without bond since his arrest on the federal charges in July, to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Grayville Police Department, with the assistance of the Edwards County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney James M. Cutchin.
U.S. Attorney John Walsh Attends White House Summit on Countering Violent ExtremismRead the Press Release
DENVER -- Today, U.S. Attorney John Walsh, along with six other U.S. Attorneys, are participating in the White House’s Summit on Countering Violent Extremism.
The purpose of the Summit is to highlight domestic and international efforts to prevent violent extremists and their supporters from radicalizing, recruiting, or inspiring individuals or groups in the United States and abroad to commit acts of violence, efforts made even more imperative in light of recent, tragic attacks in Ottawa, Sydney, and Paris. This summit will build on the strategy the White House released in August of 2011, Empowering Local Partners to Prevent Violent Extremism in the United States, the first national strategy to prevent violent extremism domestically.
Our partners around the world are actively implementing programs to prevent violent extremism and foreign terrorist fighter recruitment. The summit will also include representatives from a number of partner nations, focusing on the themes of community engagement, religious leader engagement, and the role of the private sector and tech community.
Through presentations, panel discussions, and small group interactions, participants will build on local, state, and federal government; community; and international efforts to better understand, identify, and prevent the cycle of radicalization to violence at home in the United States and abroad.
U.S. Attorney Brendan V. Johnson to Step DownRead the Press Release
Sioux Falls, South Dakota – Brendan V. Johnson announced this morning that he will step down as the United States Attorney for the District of South Dakota effective March 11, 2015. Johnson was unanimously confirmed by the United States Senate on October 15, 2009. He is among the longest serving U.S. Attorneys in the history of South Dakota.
“I am proud of what we have accomplished during my tenure,” said U.S. Attorney Brendan Johnson. “We attacked the horrific crime of human trafficking on a scale that is unprecedented for a state our size, and we worked shoulder-to-shoulder with our tribal partners to reduce violence against Native American women and children. Our efforts helped put away some of South Dakota’s most violent drug dealers and notorious tax cheaters. In short, this office upheld the public trust at all times and distinguished itself as a national leader within the United States Department of Justice. I leave comforted with the knowledge that our tremendously skilled First Assistant United States Attorney Randy Seiler will continue to build on this record of accomplishment. Finally, I want to thank President Barack Obama and Attorney General Eric Holder for the opportunity to serve the people of South Dakota.”
"During Brendan Johnson's tenure as United States Attorney for South Dakota, he has distinguished himself as an exemplary leader, a passionate advocate for his fellow citizens, and an extraordinarily dedicated public servant," said Attorney General Holder. "As a lawyer and as a leader, Brendan has set a standard of excellence that will not soon be surpassed. Particularly with regard to public safety challenges on tribal lands, he has served as a key advisor to senior Justice Department officials—including me. As past Chair of the Native American Issues Subcommittee, he is not only a respected champion for tribal justice in his own right, but a critical national leader—offering sound guidance, wise counsel, and candid advice on a host of pressing issues. In standing against violent crime, fraud, drug trafficking, violence against women, and countless other threats, Brendan's fierce and determined service, on behalf of the people of South Dakota, has been without equal. Although he will be greatly missed, his many contributions will endure. I thank him for his outstanding service—to South Dakota, and to our nation—and wish him all the best as he takes on new challenges and opportunities."
Mr. Johnson is a graduate of the University of South Dakota and the University of Virginia School of Law. Shortly after his confirmation in 2009, Johnson was selected by the Attorney General of the United States to chair the Department of Justice’s Native American Issues Subcommittee. In this capacity, Mr. Johnson strengthened relationships between the Department of Justice and tribal communities across the country. He has been a national leader in implementing the reauthorization of the Violence Against Women Act (VAWA) which contains provisions that significantly improve the safety of Native women, and allows federal and tribal law enforcement to hold more perpetrators of domestic violence accountable for their crimes. Since the passage of VAWA, federal prosecutors nationwide have convicted more than 140 defendants under the law’s enhanced federal assault statutes.
Mr. Johnson’s leadership also brought national attention to the District of South Dakota’s efforts to strengthen relationships with tribes in the state. During Johnson’s tenure, the Attorney General of the United States, the Deputy Attorney General, and the Associate Attorney General of the United States all visited South Dakota tribes to review the innovative programs implemented in the state. Some of the programs Johnson implemented include a juvenile diversion program to keep Native American children out of the federal criminal justice system, designated tribal prosecutors as Special Assistant United States Attorneys, arranged the first in the nation state-wide tribal listening session, organized the first in the nation state-wide conference on violence against Native women, conducted town-hall meetings on public safety on South Dakota reservations, and assigned a prosecutor to each reservation tasked with the responsibility of building trust and confidence with tribal members. The efforts produced results. On South Dakota’s largest reservations, the number of criminal prosecutions increased by approximately 131 percent on the Rosebud Reservation, and 82 percent on the Pine Ridge Reservation, while the office’s declination rate dropped dramatically.
Mr. Johnson also led South Dakota’s response to the growing epidemic of human trafficking. During Johnson’s time in office, more than 30 men were prosecuted for human trafficking. Of that number, there was more life sentences handed down in the District of South Dakota than any other federal district in the country. South Dakota also leads the nation in the number of men who have received federal mandatory minimum sentences for attempting to purchase sex with a child. Johnson created the state’s first law enforcement human trafficking task force, and in 2014, he convened one of the nation’s largest anti-human trafficking conferences in Sioux Falls, SD. He also personally argued the case of United States v. Jungers to the Eighth Circuit Court of Appeals, obtaining the precedent setting decision that buyers of sex acts with minors are committing crimes of sex trafficking under federal law.On October 12, 2014, Johnson received the prestigious Pathbreaker Award from Shared Hope International for his Anti-Trafficking Leadership. “Brendan Johnson is a force of determination, initiative, and skill that should leave buyers terrified to purchase sex with a minor in South Dakota,” Shared Hope International President and Founder Linda Smith said in announcing the award. “By creating a threshold for buyer accountability, he sets a national precedent that, if applied, will make significant strides in reducing tolerance for purchasing sex with a minor.”
In 2012, Johnson was also selected by Attorney General Holder to serve as one of thirteen United States Attorneys on the Attorney General Advisory Committee (“AGAC”). The AGAC advises the Attorney General on criminal justice matters throughout the nation. Johnson also served on the Department of Justice Terrorism-National Security Subcommittee and the Child Exploitation Subcommittee. He co-chairs the South Dakota Law Enforcement Coordinating Committee and is a member of the Midwest High Intensity Drug Trafficking Area Executive Board.
Mr. Johnson also brought the issue of synthetic drugs to the forefront by raising public awareness across the state, through educational presentations to various groups, organizations, and classrooms. As synthetic drug use was on the rise nationally, in 2012 he held a press conference with law enforcement partners reflecting a shared commitment to take analogue drugs and the people who sell them off the street. Approximately 14 people were prosecuted for this crime under Johnson’s watch. Health care fraud was another area of focus for Johnson, with the creation of a Health Care Fraud Task Force aimed at educating providers, as well as prevention. Another example of how crime does not pay was reflected in the District Office’s Financial Litigation Unit (FLU) collections. FLU is responsible for activities related to the collection of civil judgment debts owed to federal agencies, as well as the collection of restitution. In FY 2013 alone, FLU collected $24.6 million in civil judgments and criminal payments, averaging $2 million per month.
According to the Administrative Office Statistics Division of the U.S. District Courts, the District of South Dakota was ranked among the top 20 most productive Federal District Courts in America in 2013. Also released in the FY 2013 data, the District had the second highest number of criminal trials in the country.
Mr. Johnson’s determined efforts to make South Dakota a safer place were recognized by several organizations. He was honored with the University of South Dakota Women in Law 2013 Attorney of the Year award. Johnson’s nomination by the group was driven by his successful efforts in creating a South Dakota Domestic Violence Coordinating Committee, sponsoring and participating in regional Native American Youth Leadership listening conferences, spearheading the creation of a special domestic violence prosecutor on the Standing Rock reservation, sponsoring a Civil Rights Conference, and bringing human trafficking to the forefront. Also in 2013, the South Dakota Domestic Violence Coordinating Committee chose Johnson as its Prosecutor of the Year, citing his leadership on human trafficking, domestic and sexual abuse, and increasing prosecution rates in these areas.
“It has been an honor to serve as United States Attorney. My goal when I started was to make South Dakota a safer place. I believe that goal has been achieved. But make no mistake, nobody does this job alone, and I’ve had the benefit of great partners. The credit for any accomplishments during my tenure is shared with South Dakota’s law enforcement officers and the career professionals in this office who did great work before I arrived, and will continue to do great work long after I’m gone,” stated Johnson.
Following his resignation, Mr. Johnson will return to private practice in Sioux Falls, South Dakota, where he will establish a new South Dakota office for a national law firm.
U.S. Attorney Attending the White House Summit on Countering Violent ExtremismRead the Press Release
SACRAMENTO, Calif. – United States Attorney Benjamin Wagner is pleased to be in attendance at a Summit on Countering Violent Extremism being hosted by the White House today in Washington, D.C. The Summit will highlight domestic and international efforts to prevent violent extremists and their supporters from radicalizing, recruiting, or inspiring individuals or groups in the United States and abroad to commit acts of violence, efforts made even more imperative in light of recent, tragic attacks in Ottawa, Sydney, Paris, and Copenhagen. It is expected that Summit participants will include President Barack Obama, Vice-President Joe Biden, Secretary of State John Kerry, Attorney General Eric Holder, and many others deeply involved in the efforts to prevent such acts of violence.
Individual United States Attorney Offices play a role in these efforts, as a critical part of President Obama’s national strategy to prevent violent extremism domestically focuses on partnering on a local level with social service providers, religious leaders, community members and law enforcement agencies to address violent extremism as part of the broader mandate of providing public safety and crime prevention in each of our communities. A focus of the Summit, and of efforts by U.S. Attorneys, is developing ways to empower local communities by raising awareness and providing them with useful information so that they are better equipped to protect young people from the lure of radicalization.
“Protecting our citizens and our communities means more than simply finding effective ways to respond to terrorist incidents,” said U.S. Attorney Wagner. “It requires working hand-in-hand with people of all faiths to help further our understanding and ability to identify and address the various factors that can lead to radicalization and violence. I am honored to participate in this Summit, and I look forward to working with the people of our community at home to carry out this very important work.”
Additional information concerning efforts to prevent violent extremism can be found in an editorial by President Obama, published in today’s edition of the Los Angeles Times.
Two sentenced for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Samuel J. Pete, 29, of Youngstown, Ohio, and Patrick A. Groves, 24, of Wheeling, were sentenced today for distributing crack cocaine near a protected location, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Marshall County Drug and Violent Crime Task Force and the Ohio Valley Drug and Violent Crime Task Force revealed that Pete and Groves sold crack cocaine in July 2014 near a protected location. Both task forces are HIDTA-funded initiatives.
The defendants each pled guilty in December 2014 to one count of “Distribution of Cocaine Base Near a Protected Location.” Pete was sentenced today to 60 months in prison. Groves was sentenced today to three years of probation.
Assistant U.S. Attorney Robert McWilliams prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Two Smugglers Sentenced for Leaving A Pregnant Woman to Die in the Otay Mountain WildernessRead the Press Release
SAN DIEGO – Two alien smugglers who left a pregnant woman to die in the rugged Otay Mountain wilderness during an ill-fated border-crossing attempt were sentenced in federal court today for actions that ultimately resulted in her death.
With the woman’s widower and three children in the courtroom, U.S. District Judge Cathy A. Bencivengo sentenced Carlos Hernandez-Palma to 84 months in prison, and Fernando Armenta-Romero to 57 months. Hernandez and Armenta pleaded guilty in October 2014 to Bringing in an Illegal Alien Resulting in Death and Bringing in an Illegal Alien for Financial Gain.
According to court records, the woman’s husband, Baltazar Razo-Barreto, repeatedly pleaded with the smugglers to use their cellular phone to call for assistance when his wife became gravely ill in the craggy, remote terrain. The smugglers refused. Ultimately the husband was forced to leave his wife, Jaqueline Capistran-Ochoa, to seek help, and the smugglers eventually abandoned her.
“These smugglers showed a profound lack of humanity when they refused to call for help and left a dying woman alone in the middle of nowhere,” said U.S. Attorney Laura Duffy. “This tragic case serves as a brutal reminder that attempting to cross into the United States illegally – and putting your faith, hope and future in the hands of mercenaries - is a very dangerous proposition and not worth the gamble. My office will aggressively prosecute those who smuggle illegal aliens into the United States for financial gain, place vulnerable people in grave danger, and needlessly cause deaths.”
On or about December 29, 2013, at approximately 7:10 PM, the Border Patrol Search Trauma and Rescue unit responded to a report of a 32-year-old undocumented alien female abandoned in the Otay Mountain Wilderness near the U.S.-Mexico border in southeastern San Diego County. This is a rugged and isolated area, with limited access to roads and no development.
Border Patrol agents contacted the reporting party, later identified as Razo, who identified himself as the husband of the missing woman. He told the agents that Ms. Capistran had been in medical distress when he left her in the care of others while he sought help.
After an extensive search of the mountainous area over a period of two days, the husband eventually led Border Patrol agents to an area where they discovered Ms. Capistran’s body. According to the medical examiner, Ms. Capistran’s death was attributed to hyperglycemia and ketoacidosis due to diabetes mellitus and hypothermia from environmental exposure. The medical examiner reported that Ms. Capistran was pregnant and estimated the gestational age of the fetus at approximately 11 to 12 weeks.
As indicated in court documents, Mr. Razo and his wife made arrangements with the smugglers in Mexico to be brought illegally into the United States in December 2013. The smugglers identified themselves to Mr. Razo as “CARLOS” (Hernandez) and “ARMENTA.” The smugglers told Mr. Razo that they would smuggle him and Ms. Capistran into the United States in exchange for a total smuggling fee of $12,000.
During their discussion, the smugglers explained that the journey from Mexico into the United States would take 1.5 to 2 days, including frequent breaks. The smugglers added that it was not particularly arduous as the terrain was mostly flat. The smugglers told Mr. Razo that the hardest part was climbing the U.S.-Mexico border fence. Mr. Razo relayed this information to Ms. Capistran. She had developed diabetes after the birth of their second child and was on diabetes medication. They also suspected that she might be pregnant.
Before leaving Tijuana, Mexico, for their journey into the United States, the smugglers took Ms. Capistran for walks around the park to determine whether she was fit to make the trip, especially since she appeared overweight and tired. Ms. Capistran walked with the smugglers through the park, but often grew tired and repeatedly required rest stops. The smugglers argued amongst themselves as to whether she could make the smuggling trek and even tried to recruit others to replace Mr. Razo and Ms. Capistran. Despite their misgivings and given their inability to recruit anyone else willing to pay them $12,000, they decided to take a chance on Mr. Razo and Ms. Capistran. On or about December 26, 2013, Hernandez and Armenta smuggled Mr. Razo and Ms. Capistran into the United States by climbing over the U.S./Mexico boundary fence in Tijuana, Mexico.
Notwithstanding the smugglers’ description of the terrain as mostly flat, the hike was mountainous, covered with large boulders and difficult to traverse. After approximately two days, Ms. Capistran began to slow down and required more frequent rest stops. Ms. Capistran told Mr. Razo that she felt like there was water in her lungs, and she was having a hard time breathing. Soon she was unable to walk at all.
Mr. Razo repeatedly pleaded with the smugglers to seek help and to use their cellular phone. The smugglers refused. They claimed the phone did not work and that it had been destroyed. After the third day, on December 29, 2013, Ms. Capistran was unresponsive. Since the smugglers refused to seek help, Mr. Razo left his wife in the smugglers’ care and hiked into the wilderness on his own. Mr. Razo eventually was able to contact his brother. The brother picked up Mr. Razo and called 911, and dispatchers connected them to the Border Patrol for assistance.
By the time Border Patrol agents and Mr. Razo found Ms. Capistran in the Otay Mountain wilderness, it was too late. Ms. Capistran had been left to die on a trail in the mountains. The smugglers were gone. They had hiked out of the mountains two days before and called Armenta’s brother to pick them up.
In addition to the prison sentences, Judge Bencivengo ordered that CARLOS and ARMENTA each serve a term of three years of supervised release.
DEFENDANTS Case Number: 14CR02766-CAB Fernando Armenta-Romero Age: 43 Carlos Hernandez-Palma Age: 35 CHARGESCount 1: Title 18, United States Code, Section 1324 – Bringing in Illegal Alien Resulting in Death – statutory maximum of death or life imprisonment, a maximum fine of $250,000, a 5-year term of supervised release, and $100 special assessment.
Count 2: Title 18, United States Code, Section 1324 - Bringing in Illegal Alien for Financial Gain – statutory minimum of three years, statutory maximum of 10 years, a maximum fine of $250,000, a 3-year term of supervised release, and $100 special assessment. INVESTIGATING AGENCIESBorder Patrol - Chula Vista Intelligence Division
Two More Florida Telemarketers Plead GuiltyRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 18, 2015, Nathan Christian, 31, of Boynton Beach, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Christian was a manager at C&G Marketing Associates, LLC, a Florida corporation that in 2009 defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). Working out of an office building in West Palm Beach, Florida, PTS targeted owners of timeshares throughout the United States. In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada, including dozens of victims within the Southern District of Illinois. Sentencing is set for May 29, 2015, at 10:00 a.m. Christian will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
In a separate case, United States Attorney Wigginton announced today that on February 18, 2015, Gemma Tzen, 26, of Orlando, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Tzen was a telemarketer for National Solutions and related companies located in Orlando, Florida, corporations that defrauded consumers across the continent using the fictitious names, Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timeshares MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International. National Solutions targeted owners of timeshares throughout the United States and Canada. In various court filings related to the National Solutions scam, the government has alleged that the overall scam bilked over 2,500 consumers out of at least $6 million, including eight victims within the Southern District of Illinois. Sentencing is set for May 29, 2015, at 9:00 a.m. Tzen will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
These prosecutions are two of nearly 75 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Assistant United States Attorneys William Coonan and Michael Hallock.
Three Charged in Fraud SchemeRead the Press Release
HOUSTON – Stefano Guido Vitale, 39, Alan Leschyshyn, 51, and Bree Ann Davis, 38, have been arrested following the return of a federal indictment alleging a conspiracy to commit wire fraud and a conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson.
The indictment alleges the scheme produced approximately $2.5 million in fraudulently obtained proceeds which the defendants agreed to launder through various bank accounts. The defendants are accused of using and establishing various business entities during their scheme to sell, at a discount, nonexistent commercial accounts receivable.
They allegedly approached factoring companies as sellers of customized gaming vault bundles and presented fabricated invoices as evidence the defendants were owed a certain amount of money for goods provided to another one of their business entities. To establish creditworthiness of these companies and to convince the factoring company the credit risk was minimal, documents were fabricated and/or altered and provided to the factoring company by the defendants, according to the charges.
“Engaging in financial transactions comprised of criminally derived funds in order to conceal the true nature and source of the proceeds is money laundering,” said Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI). “We will continue to work with our federal law enforcement partners to investigate those who engage in fraudulent conduct.”
Vitale and Leschyshyn, of Scottsdale and Cave Creek, Ariz., respectively, will make their initial appearances in Phoenix, while Davis, of Lakewood, Colo., will appear before a U.S. magistrate judge in Denver. They are expected to make appearances in Houston in the near future.
If convicted, they each face up to 20 years in federal prison on each charge.
The criminal investigation was conducted by IRS-CI and the FBI. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Tennessee man sentenced for possession of firearms by a convicted felonRead the Press Release
Evansville – Josh J. Minkler, Acting United States Attorney, announced today that Jacob Roy Hammond, 23, Dover, Tennessee, was sentenced to 180 months (15 years) in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to two counts of being a felon in possession of a firearm.
Immediately before sentencing Hammond admitted that on February 22, 2014, he was in possession of two loaded firearms that were later determined to have been stolen. The first, a Springfield Arms, model XD, .40 caliber semi-automatic pistol, the second, a Walther, model P22, .22 caliber semi-automatic pistol. Hammond also admitted that he had sustained multiple felony convictions in the state of Tennessee before his possession of these firearms.
On February 22, 2014, agents working with the Evansville United States Marshal Service conducted a fugitive search for Hammond at the request of Montgomery County, Tennessee, law enforcement officials. The defendant had an outstanding warrant in Tennessee for attempted murder after fleeing from local police officers. As a result of their search, the defendant was located in an Evansville hotel parking lot on North First Avenue with the two loaded firearms.
“My office has no tolerance for individuals who choose to break the law and illegally carry firearms,” said Minkler. “Those who do, should plan to spend time in federal prison.”
This case was the result of an investigation by United States Marshal Service, the Evansville Police Department and the Bureau of Alcohol, Tobacco and Firearms.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 3 years of supervised release following Hammond’s release from prison. Hammond must submit to drug testing and treatment while on supervision.
Tarrant County Man Sentenced for Using Drug Money to Purchase PropertyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 61-year-old Colleyville, Texas man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Donald Cagle pleaded guilty on Nov. 19, 2013 to conspiracy to engage in monetary transactions in property derived from the sale of cocaine and was sentenced to 57 months in federal prison today by U.S. District Judge Marcia A. Crone. Cagle was also ordered to pay a fine of $10,000.
According to information presented in court, from May 19, 2008, through April 28, 2010, Cagle knowingly conspired with Jose Vasquez, Sr., a large-scale distributer of cocaine in Texas. Knowing that Vasquez was involved in some form of illegal activity, Cagle financed and purchased real and personal property in Cagle's name or in the names of Vasquez' family members on behalf of Vasquez. Cagle received payments for these properties from Vasquez in cash that had been transported from Richardson, Texas to Cagle in Colleyville, Texas.
Vasquez was indicted by a federal grand jury in Dec. 2010 and pleaded guilty to conspiracy to possess with intent to distribute cocaine in Feb. 2013. He was sentenced to 147 months in federal prison by Judge Crone on Nov. 19, 2014.
This case was investigated by the U.S. Drug Enforcement Administration and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.St. Louis County Area Landscape Company and Its Owner Indicted on Immigration ChargesRead the Press Release
St. Louis, MO – MICHAEL O'HARA, O'HARA LANDSCAPE/LAWN CARE and PRO CARE ENVIRONMENTAL were indicted on visa fraud charges by setting up a shell company to double up on the number of H-2B visa workers.
The H-2B non-immigrant visa program permits employers to hire aliens to come to the United States and perform temporary, non-agricultural services or labor on a one-time, seasonal, peak-load or intermittent basis. There is a set limit on the number of aliens who may receive H-2B visa status during each government fiscal year. The H-2B visa classification requires the Secretary of Homeland Security to consult with appropriate agencies before admitting H-2B non-immigrants.
O’Hara Landscape/Lawn Care, Inc. performs residential and commercial landscaping and lawn care. The main company office is located in the 1000 block of North Lindbergh, St. Louis, Missouri. According to the indictment, Michael O’Hara created Pro Care as a shell company as a means to facilitate and enhance O’Hara Landscape’s access to H-2B visa workers. Pro Care was supposedly an independent landscape and lawn care company, with its own employees, office space (leased from Michael O’Hara), equipment, financing and client list, when in fact Pro Care had none of the above, but simply represented O’Hara Landscape assets as its own. O’Hara falsified statements on behalf of Pro Care in the supporting documentation for temporary labor certifications asserting that Pro Care had a bona fide need for H-2B visa workers, and that the client list of O’Hara Landscape was actually the client list of Pro Care. The H-2B visa workers approved for employment at Pro Care actually worked for O’Hara Landscape, thus allowing Michael O’Hara and O’Hara Landscape access to H-2B visa workers to which they were not otherwise entitled. Finally, the indictment alleges that Michael O’Hara and O’Hara Landscape took steps to conceal from authorities the unlawful nature of Pro Care.
Michael O’Hara, residing in St. Louis County, O’Hara Landscape/Lawn Care, Inc. and Pro Care Environmental, LLC , were each indicted by a federal grand jury on one felony count of conspiracy to commit visa fraud.
If convicted, this charge carries a maximum penalty of five 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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Department of Labor, Office of Inspector General. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Social Worker Sentenced for Defrauding Blue Cross Blue ShieldRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nina Jafari, a licensed clinical social worker, 64, of Amherst, N.Y., who was convicted of health care fraud, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorneys Michael DiGiacomo and Aaron J. Mango, who handled the case, stated that the defendant defrauded Blue Cross Blue Shield of Western New York. Jafari submitted reimbursement claim forms to the insurance provider for services that were not rendered. The Government’s evidence included tape recorded conversations between the defendant and a patient. In those conversations, Jafari instructed the patient not to share any information with Blue Cross Blue Shield regarding dates of service.
The amount that the defendant defrauded the insurance carrier totaled approximately $138,000.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Health Care Fraud Task Force.
Sheepsprings, N.M., Man Pleads Guilty to Federal Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Jeremiah Ray Johnson, 39, an enrolled member of the Navajo Nation who resides in Sheepsprings, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a misdemeanor assault charge.
Johnson was indicted on Aug. 12, 2014, and charged with assault resulting in serious bodily injury. The indictment alleged that Johnson assaulted the victim in San Juan County, N.M, on April 3, 2013.
During today’s proceedings, Johnson pled guilty to an information charging him with a misdemeanor assault charge. Johnson admitted that on April 3, 2013, while at a residence in Sheepsprings, N.M., he punched and stabbed a Navajo man with a knife during a fight. The victim required hospitalization as a result of his injuries.
At sentencing, Johnson faces a statutory maximum penalty of one year in federal prison and a maximum of five years of probation. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Jacob Wishard is prosecuting this case.
Seven Individuals Charged by Complaint WithRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that seven defendants have been charged in four separate criminal complaints with sex trafficking of a minor and conspiracy to sex traffic minors. The charges carry a mandatory minimum penalty of 10 years in prison for each victim, a maximum of life, and a $250,000 fine.
Charged by complaint are:
- Stephen Jones, 27
- Kasandra Weeks, 22
- Leeosha Allen, 21
- Martin Pullin, 23
- Thaddeus Grice, 36
- Maraida Echevarria, 25
- Christian Nartey, 23
In addition, Stephen Jones and Kasandra Weeks are charged with trafficking of an adult through the use of force. Maraida Echevarria and Christian Nartey are charged with transporting a minor across state lines to engage in sex trafficking.
“These defendants stand accused of seeking out and preying upon some of the more vulnerable victims in our community,” said U.S. Attorney Hochul. “Coming from difficult circumstances, victims were lured by the promise of money and drugs, or coerced with violence. Law enforcement will continue its efforts to abolish this modern day form of slavery.”
“It’s a story of threats, intimidation, violence and slavery where young girls are being forced into a world of sex for money,” said James Spero, Special Agent in Charge of HSI Buffalo. “Human trafficking is not something that is happening far away. Young girls and women in your neighborhood are being victimized every day. The threat is everywhere. The allegations in this case are particularly troubling because of the volume of defendants who were accessing these young girls, but it underscores HSI’s commitment to working with our law enforcement partners to search out exploiters who work to victimize very young women and children."
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, between June 2013 and March 2014, the defendants targeted and manipulated seven minor victims and two adult victims, many of whom were at-risk and vulnerable, to engage in prostitution activities.
According to the complaints, some victims were located through social media accounts. Defendant Stephen Jones, meanwhile, went to the Department of Social Services or women shelters and waited until girls appearing young in age came outside. According to the complaint, victims were promised quick money and drugs, and on other occasions, threatened with violence. The victims lived with the defendants at hotels and various houses associated with the defendants.
Regarding the sex trafficking, defendants posted daily advertisements using fake photos for the victims on backpage.com and myprovider.com. One advertisement read: “ITS KRISTEN AND ASHLEY!! Ur 2 favorite young GODDESS up all day READY2play!! :-) CALL NOW!! Victims were taken from the Rochester area to Buffalo, Syracuse, Albany, Utica, and New Jersey to engage in prostitution activities and avoid detection by law enforcement. To keep control over the victims, the defendants kept the money victims earned from prostitution activities, and limited the victims’ communications with family and friends.
U.S. Attorney Hochul also provided warnings to both children and parents. “The best protection lies in recognizing the scope of the problem. Children and parents should remember common sense tips – all of which begin with ‘T.’”
“Young people, watch your TECH, including internet-connected phones, computers, on-line games and social media sites. The THREAT does not come solely from men, women also may be predators and lookouts for victims. Watch your TALK – strangers look and listen for vulnerable children. TRUST your gut, and always TURN to parents, counsellors and loved ones at any sign of danger.”
“For parents, recognize the THREAT, TALK to your child, and be aware that traffickers most often TARGET the young, lonely, alienated or those who have no one to protect them.”
The criminal complaints are the culmination of an investigation on the part of the Immigration and Customs Enforcement, Homeland Security Investigation, under the direction of Special Agent in Charge James C. Spero, the Federal Bureau of Investigation, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Brighton Police Department, under the direction of Chief Mark Henderson, and the Gates Police Department, under the direction of Chief James Vanbrederode. Additional assistance provided by the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Savannah Business Owner Pleads Guilty to $2 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a now-defunct Savannah, Mo., business pleaded guilty in federal court today to a scheme to defraud U.S. Bank in St. Joseph, Mo., of more than $2 million.
Wilbur L. Duncan, 71, of Savannah, waived his right to a grand jury and pleaded guilty before U.S. District Judge Brian C. Wimes to a federal information that charges him with four counts of loan application fraud.
Duncan was the owner of Duncan Agri Service, which is no longer in business. By pleading guilty today, Duncan admitted that he made materially false statements on inventory reports that were used by U.S. Bank to secure a line of credit for his business. Duncan admitted that he overvalued property or security and falsely represented the value of business inventory on those reports.
Duncan made dozens of false statements regarding the inventory over the life of the loans. The inventory was substantially less that Duncan reported and U.S. Bank would not have continued to extend a line of credit, or would have substantially reduced the line of credit to Duncan Agri Service, had the bank known of the actual level of inventory.
As a result of this scheme, Duncan defrauded U.S. Bank in the amount of $2,160,085 and created a loss of $1,459,455 for the bank after liquidation of Duncan Argi Service assets.
Under the terms of today’s plea agreement, Duncan must forfeit to the government residential property in Gravois Mills, Mo., a 2008 Chevrolet pickup truck, a 2008 Chevrolet Trailblazer, a 2000 Xpres 16-foot aluminum bass boat, a 1996 Chris 27-foot fiberglass boat and a 2000 Mercury motor.
Under federal statutes, Duncan is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Senior Litigation Counsel Gregg Coonrod. It was investigated by the FBI.
San Carlos Man Sentenced to 15 Years for Second Degree MurderRead the Press Release
PHOENIX– On Feb. 9, 2015, Ricardo Lee Polk, 20, a member of the San Carlos Apache Indian Community, was sentenced by U.S. Senior District Judge Roslyn O. Silver to 180 months in prison as a result of pleading guilty on Sept. 26, 2014, to second degree murder.
On Jan. 6, 2011, Polk was with the victim and others on the San Carlos Apache Indian Community. Without apparent provocation, Polk recklessly pointed a handgun at the victim and fired one time from close range striking the victim in the head and causing her death. Polk fled the area, but was later arrested after a thorough investigation.
The investigation in this case was conducted by Bureau of Indian Affairs. The prosecution was handled by Thomas Simon, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-01202
RELEASE NUMBER: 2015-018_Polk
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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