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6 August 2014
KC Man Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to steal taxpayers’ identity information in order to receive fraudulent tax refunds.
Michael J. Moore, 27, of Kansas City, Mo., pleaded guilty before U.S. District Judge Howard F. Sachs to the charge contained in a March 18, 2014, federal indictment.
Moore’s girlfriend and co-defendant, Taylor S. Knight, 32, of Kansas City, Mo., pleaded guilty on July 25, 2014, to leading the fraud conspiracy. Knight worked as employee of the Internal Revenue Service at the office at 333 W. Pershing Rd., Kansas City. Knight admitted that she abused her position of trust when she inappropriately accessed the information of three taxpayers as part of a conspiracy to defraud the United States by using the stolen identity information to fraudulently induce the IRS into issuing tax refund payments.
On Sept. 30, 2011, Knight used the information from two of the victim taxpayers (who were married) to submit a bogus online application for three prepaid debit cards. These debit cards were issued and mailed to the residence of Moore’s grandmother. Moore monitored the mail sent to his grandmother’s address and retrieved the three prepaid debit cards. They agreed to use the grandmother’s address rather than use an address associated with Knight in an effort to conceal her role in this conspiracy to defraud the United States.
On Oct. 17, 2011, Knight submitted a 2010 tax return for the same two married victim taxpayers. The IRS approved a $46,572 refund, of which $5,000 was deposited on a debit card that had been obtained by Knight; this amount was spent by Moore and Knight. The IRS attempted to deposit the remaining $41,572 refund on the other debit cards obtained by Knight, but the receiving banks rejected the deposits.
Moore telephoned the IRS and falsely claimed to be the victim taxpayer. He provided the IRS representative with pertinent personal identification information for both victims and requested the IRS to send the remaining tax refund to a new address located in Independence, Mo. He identified this address because it was his former residence and he knew it was unoccupied.
In August 2011, the victim taxpayers filed legitimate amended tax returns. A $46,734 refund check was sent to the Independence address and was obtained by Moore and Knight. Knight admitted that she paid a third co-conspirator $500 to help her cash the refund check. Knight obtained false identification documents – including Social Security cards, credit cards and driver’s licenses – so that they could assume the identity of the victim taxpayers. They attempted to cash the stolen Treasury check at a local convenience store. The clerk was concerned about cashing such a large check and he went to his immediate supervisor for guidance. They told the clerk and his supervisor that, if they would cash the check, they could keep $6,000 of the proceeds. The supervisor decided not to cash the check, but he told them to come back later. When Knight and her co-conspirator returned, the owner reported the incident to law enforcement. Police officers arrived about 10 minutes later and they were arrested.
Knight also admitted that she submitted a bogus online application for a prepaid debit card in the name of another victim taxpayer. The debit card was approved and mailed to an address in Oak Grove, Mo.; this debit card was never used. Knight admitted that she submitted this false online application to test whether her scheme to defraud the IRS was viable.
Under federal statutes, Moore and Knight are each subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Treasury Inspector General for Tax Administration.Judge Gives Bank Robber 10 YearsRead the Press Release
PHILADELPHIA - Mark Labenz, 33, of Philadelphia, PA, was sentenced today to 120 months in prison for robbing four Philadelphia banks between December 2009 and January 2014. Labenz pleaded guilty on March 19, 2014 to the following robberies: December 31, 2009, Citizens Bank at 2102 Cottman Avenue; December 19, 2013, the Republic Bank located at 833 Chestnut Street; December 23, 2013, the Prudential Savings Bank, located at 28 North 3rd Street; and January 3, 2014, the Wells Fargo Bank located at 340-350 South 2nd Street. In the last bank robbery, Labenz physically restrained a bank customer while demanding the money from the bank. He also stole the customer’s $400.
In addition to the prison term, U.S. District Court Judge Juan Sanchez ordered three years of supervised release, $5,889 in restitution, and a $400 special assessment.The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and was prosecuted by Assistant United States Attorney Ewald Zittlau.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Illegal Alien Sentenced for Conspiring to Produce False IDRead the Press Release
BOSTON – An illegal alien was sentenced today in U.S. District Court in Worcester in connection with a conspiracy to produce false identification documents.
Leonardo Burgos Espinal, 42, most recently residing in Springfield, was sentenced by U.S. District Judge Timothy S. Hillman to time served of 14 months. Burgos Espinal was remanded into the custody of U.S. Immigration and Customs Enforcement for deportation. In March 2013, Burgos Espinal was charged with bribing an employee of the Massachusetts Registry of Motor Vehicles.
From January 2011 through June 2012, Burgos would direct his “clients” to present fraudulently obtained, but valid, Puerto Rican identification documents to his co-conspirator at the RMV, who would then issue a valid Massachusetts driver’s license or ID knowing that the Puerto Rican documents belonged to other real people. This sentencing is the most recent development in investigations involving identity theft and public corruption relating to the Massachusetts Registry of Motor Vehicles.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts States Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Idaho Residents Sentenced for Theft of Wood from U.S. Forest ServiceRead the Press Release
BOISE - Terry K. Burton, 46, and his son, Brent L. Burton, 23, both of Wilder, Idaho, were sentenced yesterday to three years of probation for stealing lodgepole pine posts and poles from the Malheur National Forest and selling the wood commercially in Idaho, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered the Burtons to pay $3,880 in restitution to the Malheur National Forest. Both defendants pled guilty to the misdemeanor charge of theft of government property on April 30, 2014.
The Burtons were also ordered to pay a fine of $5,000, which is suspended, so long as they are in compliance with special conditions of their probation. These conditions prohibit the defendants from using a personal use permit to cut, load, remove or haul timber or other forest product from any National Forest Service lands for the full three year term of their probation, and also require the Burtons to obtain appropriate commercial permits or enter into timber sales contracts with the Forest Service before cutting, loading, removing or hauling any timber or other forest product from any United States Forest Service lands.
According to the plea agreement, the Burtons created an illegal trail in the Malheur National Forest which they used to get into the forest for the purpose of illegally cutting lodgepole pine posts and poles without a proper permit. The Burtons then sold this timber commercially to Parma Post and Pole, in Parma, Idaho. While doing this, the Burtons caused approximately $1,380 in environmental damage to the National Forest, by leaving 425 visible stumps, extensive damage to small trees that had been run over and damaged, and ruts in the areas where they had illegally driven the ATV and trailer used to bring the lodgepole pine post and poles out of the forest.
The case was investigated by a U.S. Forest Service Law Enforcement Officer and Special Agent assigned to the Malheur National Forest.
Hartford Man Sentenced to 7 Years in Prison for Role in Armed RobberiesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ELLIS THOMAS, also known as “L” and “Big Homey,” 30, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 84 months of imprisonment, followed by three years of supervised release, for his role in an armed robbery scheme.
According to court documents and statements made in court, on November 18, 2008, two individuals were lured to a house on Case Street in Hartford for the purpose of buying stolen jewelry. When one of the individuals entered the residence, he immediately had a gun pointed in his face, was thrown to the floor, had his head covered and his hands bound. The second individual, who had been waiting in the car, subsequently entered the residence and was also thrown to the floor, blindfolded, and had his hands bound. The second victim was instructed not to move because the kidnappers had guns and they would kill him. Shortly thereafter, the second victim was removed from the house and placed in a vehicle parked at the residence by his kidnappers. While in the vehicle, the kidnappers stole the victim’s cell phone, earrings and a ring.
The kidnappers stated to the first victim that they wanted him to set up his friend, a known cocaine trafficker, so that they could rob him. The victim complied with the kidnappers demand and arranged to meet the intended third victim at a location in East Hartford. The first victim was then ordered by his kidnappers to drive his rented vehicle to the location in East Hartford, and was instructed to enter his friend’s vehicle and remove the keys from the ignition so that the kidnappers could kidnap the third victim. One or two kidnappers exited the car shortly before meeting the intended victim, and a third kidnapper remained in the car. After meeting the third victim and entering his vehicle, the first victim told the third victim to drive off as they were about to be robbed. The third victim drove away to a safe location where the first victim called police.
The kidnappers stole from the first victim jewelry, money, his rental vehicle and several televisions that were in the back of the car. The car was later recovered by police.
The second victim also escaped from the vehicle in which he was being held.
The Case Street residence was owned by THOMAS’ mother and THOMAS was identified as one of the kidnappers.
THOMAS has been detained since his arrest on November 7, 2012. On May 29, 2014, he pleaded guilty to one count of attempt to interfere with commerce by robbery.
THOMAS’ criminal history includes convictions relating to felony assault, unlawful possession and discharge of firearms, burglary, larceny, escape, and fleeing from police.
This matter was investigated by the Drug Enforcement Administration and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Four Indicted for Newton County Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas — Four East Texans have been charged in connection with a violent bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Keith Collins, Jr., 24, of Jasper, Texas, Michael Dwayne Byerly, 20, of Newton, Texas, Xavier Odarius Clark, 21, of Jasper, Texas, and Khadijah Joy De’Inn Adams, 20, of Bon Weir, Texas, were indicted by a grand jury today and charged with federal violations.
According to the indictment, on June 25, 2014, law enforcement authorities were alerted to a robbery at the Sabine State Bank & Trust Company on Highway 63 in Burkeville, Texas. During the robbery, a bank employee was stabbed multiple times sustaining serious injuries. Video surveillance revealed a man wearing a black hooded top confronting the bank employee with a knife and a handgun. The bank employee struggled with the assailant and was stabbed approximately five times resulting in a punctured lung. The assailant fled the scene without taking any money from the bank. Law enforcement officers reviewed security surveillance from nearby businesses and were able to identify Collins as a person of interest. Further investigation revealed the alleged involvement of Byerly, Clark and Adams.
A federal grand jury returned a four-count indictment charging Collins, Byerly and Clark with bank robbery, conspiracy to commit armed bank robbery, possession of a firearm during a crime of violence, and accessory after the fact. Adams was also charged with accessory after the fact.
If convicted, Byerly, Clark and Adams each face up to 20 years in federal prison for the bank robbery charge, up to 5 years for the conspiracy charge, and a minimum of 5 years for the firearms charge. All four defendants face up to 10 years in federal prison for the accessory charge.
This case is being investigated by the Federal Bureau of Investigation, Newton County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Former Rancho Cordova Executive Pleads Guilty to Securities FraudRead the Press Release
SACRAMENTO, Calif. —Matthew Sarad, 40, of Bakersfield, pleaded guilty today to securities fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sarad lived in Folsom and was the founder and chief executive officer of Rancho Cordova-based Telomolecular Corporation. It purported to be a biotechnology startup company and claimed to have developed nanoparticle technology that could eradicate cancer and treat other age-related diseases. Between November 2005 and July 2008, Sarad solicited investors nationwide, offering them stock in Telomolecular. In selling the Telomolecular stock, Sarad made untrue statements, such as telling investors that the company believed its cancer curing products would complete clinical trials, obtain requisite government approval, make it to the market in less than three years, and had a deep management team that had experience taking companies public. Sarad collected about $6.5 million from more than 300 investors.
In addition, according to court documents, between January 2009 and December 2009, Sarad owned Folsom-based Sun Nanosystems. It purported to install solar energy systems for residential and commercial customers. It claimed to have developed nanoparticle technology that vastly increased the efficiency of solar panels. In selling the solar panels, Sarad falsely told customers and prospective customers that Sun Nanosystems worked with state-of-the-art proprietary technology that could increase the efficiency of conventional solar panels by as much as 50 percent. He claimed that Sun Nanosystems had a great deal of experience installing solar panels and had satisfied past customers. Sarad collected approximately $300,000 from customers but failed to complete installation of any solar panels.
This case is the product of an extensive investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Lee Bickley and Chris Hales and Special Assistant United States Attorney David Ward are prosecuting the case.
Sarad is scheduled to be sentenced by Judge Kimberly J. Mueller on November 19, 2014. Sarad faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Philadelphia Traffic Court Judge Sentenced to 30 Months for Scheme That Defrauded Pennsylvania of Grant FundsRead the Press Release
PHILADELPHIA - Former Philadelphia Traffic Court Judge Robert Mulgrew, 56, of Philadelphia, was sentenced today to 30 months in prison for defrauding the Pennsylvania Department of Community and Economic Development (“DCED”). Mulgrew pleaded guilty on September 19, 2013 to mail fraud and conspiracy to commit mail fraud and filing a false tax return.
In addition to the prison term, U.S. District Court Judge Darnell C. Jones ordered restitution to the Commonwealth of Pennsylvania Department of Community and Economic Development in the amount of $199,274, Mulgrew also paid restitution, penalties and interest to the IRS in the amount of $123,314, three years of supervised release, and $200 special assessment.
Mulgrew and co-defendant Lorraine Dispaldo, who previously pleaded guilty, engaged in a scheme to fraudulently receive and misuse Pennsylvania state grant funds awarded to non-profit groups. Between 1996 and 2008, the DCED awarded hundreds of thousands of dollars in grants to two community groups with which Mulgrew and Dispaldo were associated. DCED awarded more than $450,000 in grants to the Friends of Dickinson Square (“FDS”) with the understanding that the grants were to be used to purchase equipment and materials for the maintenance of Dickinson Square Park at 4th & Tasker Streets, Philadelphia, and surrounding neighborhood revitalization. Mulgrew, the Vice-President of FDS, signed the FDS grant contracts with DCED. DCED also awarded approximately $397,000 in grants to the Community to Police Communications (“CPC”) with the understanding that the grants were to be used to purchase communications equipment for the police and to purchase materials to secure vacant lots and buildings for the protection of the police. Dispaldo signed the CPC grant contracts with DCED.The defendants misrepresented their intentions to DCED, and that - contrary to their agreement to spend grant funds solely to purchase equipment and materials for neighborhood revitalization and improved communications with the police - the defendants used thousands of grant dollars to pay Mulgrew’s relatives and associates. They represented that they were paying for work done on behalf of FDS and CPC. After distributing grant funds to relatives and associates, the defendants supplied false and misleading information to DCED to conceal the actual amount of grant funds which they paid to the relatives and associates contrary to the express purposes of the grant.
Mulgrew conceded that he received almost $70,000 in grant funds for his own personal uses. Mulgrew improperly reimbursed himself from FDS funds for thousands of dollars of expenditures which he claimed were incurred by FDS when they were not and for his expenditures for items not authorized under the terms of the FDS grants. Mulgrew and Dispaldo supplied DCED with false documents to conceal their own use of grant funds and other improper uses of the funds.
Mulgrew did not report the additional income from the fraud scheme on his tax return and claimed false business deductions which improperly reduced his tax liability.
Dispaldo was sentenced in November 2013 to 18 months in prison.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Paul L.Gray.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Hedge Fund Manager Sentenced to Fourteen Months in PrisonRead the Press Release
SAN FRANCISCO – Yesterday afternoon former hedge fund manager Lawrence R. (Larry) Goldfarb was sentenced to 14 months in prison for wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Goldfarb, 55, previously of San Anselmo, Calif., was the managing partner of Baystar Capital II, L.P., a private investment fund. The fund primarily made short-term investments, but it also invested in various illiquid, more difficult-to-value investments referred to as “side pockets.” In approximately 2003, Baystar II made an $8.4 million side pocket investment in Island Fund LLC. Over the next several years, that investment returned more than $16 million. Without consulting or informing the investors in Baystar II, however, Goldfarb used a substantial amount of those funds to invest in other entities, including some in which he had an economic interest. When investors asked whether Island Fund had made distributions, Goldfarb intentionally failed to disclose that distributions had been made and that Goldfarb had used and reinvested the distributions, and he falsely told investors that they were not yet eligible for distributions. According to court documents, Goldfarb’s scheme to defraud investors caused losses of approximately $6 million.
In March 2011, Goldfarb entered into a Deferred Prosecution Agreement (DPA) with the United States Attorney’s Office and a Consent Judgment with the Securities and Exchange Commission. In those documents, Goldfarb promised to pay restitution and disgorgement of approximately $12 million pursuant to a payment schedule. After making some of the payments, Goldfarb failed to make the agreed payments. The Court determined that instead of paying the agreed upon restitution and disgorgement, Goldfarb spent hundreds of thousands of dollars on various personal indulgences, including Golden State Warriors season tickets, private air travel, and vacations. The Court concluded that Goldfarb had breached the DPA, denied defendant’s motion to dismiss the criminal charge against him, and allowed this prosecution to proceed. On April 16, 2014, Goldfarb pleaded guilty to the one count of wire fraud in the Information that had been filed against him in March 2011 in connection with the DPA.
The sentence was handed down by The Honorable William Alsup, United States District Court Judge, following a Goldfarb’s guilty plea to wire fraud, in violation of Title 18, United States Code, Section 1343. Judge Alsup also sentenced the defendant to a three-year period of supervised release to follow his prison sentence. Judge Alsup ordered the defendant to begin serving his prison sentence on Nov. 5, 2014.
Robert Leach and Doug Sprague are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rawaty Yim. The prosecution is the result of an investigation by the FBI, with substantial assistance from the San Francisco Regional Office of the Securities and Exchange Commission.
(Goldfarb information )
Federal Jury Convicts Mexican National on Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – A federal jury returned a verdict earlier today finding Miguel Bustamante-Conchas, 39, a Mexican national with legal permanent resident status in the United States, guilty on heroin trafficking charges after a six-day trial, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Field Division.
Bustamante-Conchas was one of seven men arrested in June 2013 on federal narcotics trafficking charges as a result of a 15-month multi-agency investigation targeting heroin traffickers operating out of Albuquerque’s Northeast Heights, an area that has experienced a growing, wide-spread heroin abuse problem among teens and young adults in recent years. More than 25 pounds of heroin were seized during the course of the investigation.
Two indictments were filed as a result of the investigation. Bustamante-Conchas and four other men were charged in one indictment while two others were charged in a second indictment. The other six defendants entered guilty pleas to heroin trafficking charges while Bustamante-Conchas elected to proceed to trial.
Trial against Bustamante-Conchas began on July 30, 2014, on a three-count superseding indictment charging him with conspiracy to distribute large quantities of heroin in Bernalillo County, N.M., from Oct. 2012 to June 2013; aiding and abetting the possession of heroin with intent to distribute; and aiding and abetting the use of a firearm in relation to a drug trafficking crime. On Aug. 4, 2014, the court dismissed the firearms charge at the conclusion of the United States’ case and submitted the two heroin trafficking charges to the jury yesterday afternoon. The jury returned a verdict of guilty on both heroin trafficking charges late this morning.
The evidence at trial established that Bustamante-Conchas played a leadership role in a major heroin trafficking organization by managing the acquisition, storage and distribution of kilograms of heroin and overseeing the collection of cash proceeds from the sale of heroin. Evidence of Bustamante-Conchas role in the drug trafficking organization was secured from wiretaps on telephones used by his subordinates, evidence seized during a law enforcement operation on June 14, 2013, and evidence seized on June 19, 2013. Evidence obtained on June 14, 2013, included three pounds of heroin, drug ledgers, numerous cellphones and narcotics paraphernalia, which were seized at the residences maintained as stash houses by Bustamante-Conchas and his co-conspirators. An additional 22 pounds of heroin were seized on June 19, 2013 from another of the organization’s stash houses.
Bustamante-Conchas was remanded into federal custody after the jury delivered its verdict and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Bustamante-Conchas faces a prison term of not less than ten years and not more than life followed by a term of supervised release to be determined by the court.
Three of Bustamante-Conchas’ four co-defendants have resolved the charges against them by pleading guilty to participating in a heroin trafficking conspiracy. Angel Miramontes-Cruz, 22, pled guilty on May 29, 2014, and is scheduled for sentencing on Aug. 28, 2014. Under the terms of his plea agreement, he faces a prison sentence within the range of 27 to 33 months. Baltazar Granados, 37, pled guilty on June 17, 2014, and is scheduled for sentencing on Sept. 18, 2014. Under the terms of his plea agreement, he faces a prison sentence within the range of 70 to 84 months. Ramon Cabrales-Guerra, 23, pled guilty on June 23, 2014, and is scheduled for sentencing on Sept. 25, 2014. He faces a statutory maximum penalty of 20 years in prison. Miramontes-Cruz, Granados and Cabrales-Guerra are Mexican nationals illegally present in the United States and will be deported after completing their prison sentences.
The fourth co-defendant, Ruben Garcia Miranda, 48, an Albuquerque resident, pled guilty on June 12, 2014, to using a communications device to facilitate a drug trafficking crime. He is scheduled for sentencing on Sept. 11, 2014, and faces a statutory maximum penalty of four years in prison followed by a term of supervised release to be determined by the Court.
Joel Nunez-Haros, 42, and Pablo Arturo Felix-Sicairos, 20, also were arrested in June 2013, and charged in a separate indictment with possession of heroin with intent to distribute. Both men pled guilty to the indictment in late June 2014 and are scheduled for sentencing on Sept. 25, 2014. Nunez-Haros faces a statutory maximum penalty of 20 years in prison and Felix-Sicairos faces a prison sentence within the range of 37 to 46 months. Both men are Mexican nationals illegally present in the United States and will be deported after completing their prison sentences.
These cases were investigated by the Albuquerque office of the DEA, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office and are being prosecuted by Assistant U.S. Attorneys Sean J. Sullivan and Nicholas J. Ganjei.
The investigation resulting in these cases, which was code-named “Balloon Fiesta” in reference to the multi-colored balloons that heroin often is packaged in for retail distribution, was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is 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.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following:
3 Men Indicted for Kidnapping/Firearms Charges
Juan Manuel Fuentes-Morales, age 26, of Monteray, Mexico; Ruben Ceja-Rangel, age 57, of Mexico; and Luis Castro-Villeda, of Garland, North Carolina were charged in a 5-count indictment. All three defendants were charged with conspiracy to commit kidnapping, a violation of Title 18, U. S. C. §1201(c); substantive kidnapping, a violation of Title 18, U. S. C. §1201(a); hostage taking for ransom, a violation of Title 18, U. S. C. §1203; and two counts each for brandishing a firearm in furtherance of a crimes of violence, violations of Title 18, U. S. C. §924(c)(1)(A)(ii). The defendants face a maximum sentence of life imprisonment on each of the 5 charges in the indictment and a maximum fine of $250,000.00 on each charge of the indictment.
The case was investigated by numerous law enforcement agencies including the Columbia FBI Field Office; FBI Field Offices in Charlotte, Atlanta, Houston, Jacksonville, Newark, New Haven, Norfolk, New York, Philadelphia, Richmond and Washington D.C.; LEGAT Mexico City; the South Carolina Law Enforcement Division (SLED); the Calhoun County Sheriff’s Office; the Orangeburg County Sheriff’s Office; the South Carolina Department of Public Safety; the City of Columbia Police Department; the Richland County Sheriff’s Office; the Spartanburg County Sheriff’s Office; the University of South Carolina Police Department; Bladen County, North Carolina Emergency Services; the Bladen County, North Carolina Sheriff’s Office; the Cumberland County, North Carolina Sheriff's Office; the Sampson County, North Carolina Sheriff's Office; the Durham County, North Carolina Sheriff's Office; the Durham Police Department; the North Carolina Department of Public Safety; the Raleigh Police Department; the Fayetteville, North Carolina Police Department; the Texas Department of Public Safety; the Drug Enforcement Administration; the U.S. Attorney’s Office for the Eastern District of North Carolina; and the U.S. Office for the District of South Carolina. The case is assigned to Assistant United States Attorney JD Rowell of the Columbia, South Carolina office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Elma Man Sentenced on Gun ChargeRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Bernard T. Grucza, 38, of Elma, N.Y., who was convicted of possession of a firearm by a person subject to as domestic violence order of protection, was sentenced to 18 months in prison by Chief U.S. District Court Judge William M. Skretny. The defendant was also ordered to pay $223,000 in restitution to his former employer Toys R Us.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that the defendant made false written statements to Big Daddy Guns in order to obtain a Ruger .380 caliber pistol. Between July 13, 2013 and October 16, 2013, the defendant possessed the pistol despite being the subject of a restraining order issued by Elma Town Court. In addition, Grucza made false statements to Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that he had destroyed the pistol and thrown out the parts when in fact he had not.
The defendant stole over $200,000 worth of merchandise and cash from Toys R Us and sold the merchandise on eBay.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, the Federal Bureau of Investigation, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Hamburg Police Department, under the direction of Michael Williams..
Elkton Drug Dealer Sentenced to 10 Years in PrisonRead the Press Release
Member of Heroin Organization that Operated in Cecil County, Maryland, Delaware, Pennsylvania and New York; Also a Member of a Cocaine Organization That Operated in Delaware and Elsewhere
Baltimore, Maryland – District Judge Catherine C. Blake sentenced Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead,” age 38, of Elkton, Maryland today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin, and cocaine, in connection with two drug distribution rings.
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; Special Agent in Charge David G. Dongilli, Philadelphia Division of the DEA; Cecil County Sheriff Barry A. Janney, Sr.; Chief Matthew Donnelly of the Elkton Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.
According to his plea agreement, since at least December 2012, Garnett obtained bulk quantities of heroin from co-defendant Luis Lugo-Santiago and his associates for re-distribution to associates and customers in Maryland. Garnett would meet with a courier in Philadelphia where he would obtain a new supply of heroin. Garnett and associates had vehicles with hidden compartments where they could store either heroin or money. Often to exchange drugs, money or both, they would simply switch vehicles when they met. Over the course of a seven month wiretap, investigators identified 59 money deliveries from Garnett totaling $1,668,510, for the purchase of approximately 8.98 kilograms of heroin.On August 15, 2013, investigators arrested Garnett and executed search warrants at his residence, and on a Honda Odyssey that Garnett had been using to transport narcotics and proceeds. Officers recovered $31,700 from the residence, $18,430 from a hidden compartment in the vehicle and $5,649 from Garnett.
Garnett also admitted that from at least February 6, 2013 until March 14, 2013, he obtained at least 924 grams of cocaine from other supply sources, which he re-distributed to customers in Delaware and elsewhere.
Seven defendants, including Garnett and Lugo-Santiago, have pleaded guilty to their participation in the heroin conspiracy. Judge Blake sentenced Abel Nunez-Reyes, age 30, of Philadelphia yesterday to two years in prison. Barry Jenkins, Jr., age 24, of Elkton, is scheduled to be sentenced tomorrow. Luis Lugo-Santiago, a/k/a “Papi,” and “Andres Galvez,” age 39, of New York, New York is scheduled to be sentenced on September 24, 2014.
United States Attorney Rod J. Rosenstein praised the DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who prosecuted this Organized Crime Drug Enforcement Task Force case.Electric Company Owner Pleads Guilty in Navy Exchange Procurement Fraud SchemeRead the Press Release
Greenbelt, Maryland – Noe Rodriguez, age 34, of Boyds, Maryland, pleaded guilty today to making false statements, and illegal possession of a firearm by an alien, arising from a scheme in which he failed to comply with federal wage, hour and records regulations under the Davis-Bacon Act.The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Bill Jones, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Washington Regional Office; Special Agent in Charge Rocco Pierri of the Naval Criminal Investigative Service, Washington Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to his plea agreement, Rodriguez was a citizen of Mexico who entered the United States illegally in the late 1990s. He moved to Maryland in 2003, and began operating an electrical contracting business in the Washington, D.C. metropolitan area under various corporate guises, including RDZ Electric, RCM Services, Rodriguez Electric and O&G Electric. Rodriguez provided electrical work on numerous construction projects in the Washington, D.C. metropolitan area as an electrical subcontractor.
Rodriguez, on behalf of RDZ, provided electrical work during the construction of the Navy Exchange (NEX) at the National Military Medical Center located in Bethesda, Maryland. The NEX was owned by the Department of the Navy. Rodriguez was required to comply with federal wage, hour and records regulations under the Davis-Bacon Act. The Act required subcontractors to pay workers employed at the project site wages determined by the Department of Labor. The Department of Labor determined that the electrician’s prevailing wage rate at the NEX project was $49.88 an hour.
Between August 2011 and June 2012, Rodriguez provided no fewer than 30 electrical workers at the NEX project. Rodriguez, however, listed no more than eight workers on RDZ=s certified payrolls and falsely stated that he paid the workers the prevailing wage. Rodriguez in fact paid his electrical workers between $12 and $20 per hour, and failed to pay them overtime, despite the fact that many worked more than 40 hours a week. Rodriguez did not pay benefits to any of the workers. The certified payrolls, of which he submitted at least 17, also contained other material misstatements regarding the names, wages and hours of RDZ employees performing work. Over the lifespan of the NEX project, the difference between the wages actually paid to RDZ employees and the wages due under the Davis-Bacon prevailing wage rate, exceeded $1 million.
Rodriguez used the social security numbers assigned to another person and to his minor son to open bank accounts for his business and obtain his Maryland driver’s license.
On November 20, 2013, law enforcement executed a search warrant at Rodriguez’s residence and seized numerous fraudulent identification documents, some of which contained his picture and fraudulent identifiers. Law enforcement also seized a revolver and ammunition.
Rodriguez faces a maximum sentence of five years in prison for making a false statement, and 10 years for the illegal possession of a firearm by an alien. Rodriguez has agreed to forfeit funds in two bank accounts, a pick-up truck, $989,969 and a revolver. U.S. District Judge Roger W. Titus scheduled sentencing for October 30, 2014 at 2:30 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorney’s Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice's commitment to helping ensure the integrity of the government procurement process.United States Attorney Rod J. Rosenstein praised the U.S. Department of Labor - OIG, Naval Criminal Investigative Service and Social Security Administration - OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Bryan E. Foreman, who are prosecuting the case.
Douglas Dey, Owner of Former Major Supplier of Aeropostale, Inc., Sentenced to 42 Months in Prison for $25 Million Bribery SchemeRead the Press Release
Douglas Dey, the owner of South Bay Apparel, Inc. (“South Bay”), a former major supplier of t-shirts and fleece merchandise for national teenage clothing retailer Aéropostale, Inc., was sentenced today in federal court in Brooklyn, New York, to 42 months in prison, to be followed by 3 years’ supervised release. Dey and was also ordered to forfeit $7.5 million to the government, and pay $13,690,822.94 in restitution to Aéropostale, a publicly traded company on the New York Stock Exchange.
On September 27, 2012, Dey pled guilty to conspiracy to violate the Travel Act through commercial bribery for paying more than $25 million in kickbacks to Christopher Finazzo, Aéropostale’s former Executive Vice President and Chief Merchandising Officer, to obtain over $350 million in business. Finazzo was convicted on all 16 counts of fraud and commercial bribery for his role in the scheme following a three-week jury trial in April 2013, and is scheduled to be sentenced on August 20, 2014.
Dey’s sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For over a decade, Dey used bribes and kickbacks to gain an unfair and illegal advantage for his t-shirt and fleece business. By doing so, he fleeced Aéropostale and its investors out of tens of millions of dollars and damaged the financial well-being of a publicly-traded retail company. Today’s sentence sends a strong message to those who commit corporate fraud that they will be held accountable for their crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the FBI and the Securities and Exchange Commission for their assistance.
Shortly after Finazzo was hired by Aéropostale in July 1996, he and Dey entered into a fraudulent scheme whereby Finazzo directed Aéropostale’s graphic t-shirt business to South Bay in exchange for splitting South Bay’s profits with Dey. From 1996 to 2006, Finazzo caused Aéropostale to buy more than $350 million in t-shirt and fleece merchandise from South Bay, often for significantly higher prices and lower quality than was available from other suppliers. In exchange, Dey paid Finazzo more than $25 million in bribes and kickbacks, equaling approximately 50% of South Bay’s profits. In 2005 alone, at the peak of the business between Aéropostale and South Bay, Dey paid Finazzo more than $13 million in kickbacks. The kickbacks from Dey to Finazzo were paid through C&D Retail Consultants, a shell consulting corporation set up by Finazzo, and through companies jointly-owned by Finazzo and Dey.
The sentence was imposed by United States District Judge Roslynn R. Mauskopf.
The government’s case was prosecuted by Assistant United States Attorneys Winston M. Paes and Claire Kedeshian.
This prosecution was the result of efforts 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 is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
DOUGLAS DEY
Age: 57
New York, New York
E.D.N.Y. Docket No. 10-CR-457
Doctor Who Illegally Prescribed Narcotics Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that Dr. JAMES W. MARSHALL, JR., 59, of Orange, who pleaded guilty in 2011 to conspiring to illegally distribute prescription narcotics, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport.
According to court documents and statements made in court, MARSHALL, a doctor of osteopathic medicine, operates Immediate Medical Care, a walk-in clinic in Monroe. MARSHALL’s associate, Francisco Carbone, had been licensed to practice medicine until March 2005 when his license was revoked by the State of Connecticut. After his license was revoked, Carbone continued to act as a treating physician for patients. Between November 2006 and January 2012, at Carbone’s request, MARSHALL wrote prescriptions for pain medication, including oxycodone and hydrocodone, for Carbone’s patients without personally meeting, examining, or consulting with the patients. MARSHALL wrote 144 prescriptions for more than 4400 pills for Carbone’s patients.
On March 1, 2011, MARSHALL pleaded guilty to one count of conspiring to distribute controlled substances outside the scope of the usual course of professional practice. Yesterday, MARSHALL was ordered to pay a fine in the amount of $5,000. Although the government argued for a term of incarceration, Judge Underhill indicated that leniency was appropriate in light of significant collateral consequences suffered by MARSHALL as a result of his conviction, and that he had been under court supervision for more than three years without incident.
MARSHALL has surrendered his license to prescribe narcotics.
Carbone pleaded guilty to his role in this scheme and a related insurance fraud scheme and, on July 18, 2014, he was sentenced to 24 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the National Insurance Crime Bureau, the Metropolitan Property and Casualty Insurance’s Special Investigation Unit and the Travelers Insurance Company.
The case was prosecuted by Assistant U.S. Attorneys Christopher W. Schmeisser and David J. Sheldon.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Denver Attorney Pleads Guilty to Conspiracy to Defraud the IRSRead the Press Release
DENVER – Eva Melissa Sugar, age 61, of Aurora, Colorado, pled guilty yesterday before U.S. District Court Judge John L. Kane to Conspiracy to Defraud the United States in connection with the collection of taxes, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Judge Kane is scheduled to sentence Sugar on October 29, 2014. Sugar and two co-defendants, Jerry L. Roberts and Gregory N. Laurence, were indicted by a federal grand jury in Denver on May 8, 2013. Roberts pled guilty to failure to file tax returns on July 15, 2014 and is scheduled to be sentenced by Judge Kane on November 18, 2014. Laurence pled guilty to attempting to obstruct the administration of internal revenue laws on February 6, 2014 and is scheduled to be sentenced by Judge Kane on September 4, 2014.
According to information contained in the indictment and plea agreements, Sugar was a practicing attorney in Denver, Colorado and obtained an L.L.M. in Taxation from the University of Denver. Around 1999, Sugar began receiving referrals from a group called Financial Fortress Associates (FFA). FFA promoted the use of so-called Constitutional Pure Trust Organizations (PTOs) as a part of various schemes to avoid tax reporting requirements, including transferring ownership of most or all assets belonging to a taxpayer or a taxpayer’s business to trusts and treating payments to the same trusts as business deductions. FFA further advised clients not to file tax returns or any other documents with the IRS on behalf of the trusts. FFA recruited clients through the internet and in seminars or “meetings” conducted in hotel conferences rooms around the country, including locations in Colorado, Georgia, Texas, and elsewhere. At some of these meetings, Sugar explained how the FFA’s banking program worked, and others associated with FFA explained other aspects of FFA’s program.
Sugar charged her clients fees for her services, including an initial fee to set up bank accounts and associated unincorporated business organizations (UBOs), as well as annual maintenance fees. For additional fees, Ms. Sugar allowed her clients to control funds in the UBO bank accounts through the use of blank checks that she would sign, for a fee, as the account signer or trustee. The clients would then fill in the checks, spending the money from the accounts in whatever manner they desired. Sugar provided these services for more than 150 clients, and in so doing, performed various overt acts in furtherance of the conspiracy. The tax loss resulting from Sugar’s activities as part of the conspiracy is between $2.5 million and $7 million.
Roberts and Laurence were clients of Sugar. Roberts was a resident of Polk County, Florida and worked for Roberts Enterprises, a family business which assisted charitable organizations, primarily religious ones, with fundraising. Beginning in 2001 through at least May of 2007, Roberts used the services of Sugar, to take steps to prevent the IRS from learning his true income and assessing taxes on that income. Roberts then failed to file tax returns reporting his income.
Laurence was a resident of Germantown, Tennessee and practiced medicine through two entities in which he was the sole physician, Germantown Family Care and Obstetrics, LP and Germantown Aesthetics, LP. Beginning in 2002 through the end of 2007, Dr. Laurence used the services of Melissa Sugar to disguise his true income from the IRS and to support the false business and personal tax returns he filed during the relevant period.
Another client of Sugar’s, Jerold Sorensen, was charged in a separate indictment with attempted obstruction of the administration of the internal revenue laws and was found guilty by a jury in Denver in June of 2014. Sorensen is scheduled to be sentenced by U.S. District Court Judge Raymond P. Moore on September 8, 2014.
The charge to which Sugar pled guilty, conspiracy to defraud the United States, carries a penalty of not more than 5 years in federal prison and a fine of up to $250,000. Failing to file income tax returns, the charges to which Roberts pled guilty, carry a penalty of not more than 1 year in federal prison and a fine of up to $100,000 per count. Attempted obstruction of the administration of the internal revenue laws, the charged to which Laurence pled guilty and of which Sorensen was convicted at trial, carries a penalty of not more than 3 years in federal prison and a fine of up to $250,000 per count.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service and prosecuted by Assistant U.S. Attorneys Matthew T. Kirsch, Anna Edgar, Pegeen Rhyne, and J. Chris Larson.
Colombian Narcotics Kingpin Sentenced to 360 Months in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that U.S. District Judge Patricia A. Seitz sentenced Diego Perez Henao, a/k/a “Diego Rastrojo,” 43, a Colombian national, to 360 months in prison. Perez Henao was also ordered to forfeit $1,000,000.00 to the United States.
Perez Henao had been indicted by a federal grand jury on February 8, 2011, and previously pled guilty on January 24, 2014, to a single count of conspiring with others to manufacture and distribute five or more kilograms of cocaine from 1993 until February 2011, knowing that the cocaine would be imported into the United States.
Perez Henao acknowledged that he was involved in the manufacture, investment or shipment of in excess of 81,100 kilograms of cocaine during the timeframe of his conspiracy. He further acknowledged that he controlled numerous armed workers in his organization and used both airplanes and semi-submersibles to ship the cocaine north from South America to points in Central America and Mexico – en route to its eventual destination of the United States.
Following Perez Henao’s indictment, the U.S. Department of State offered a reward of up to $5 million for information leading to his capture. Perez Henao was ultimately captured by Venezuelan authorities in Venezuela on June 3, 2012. The Venezuelan authorities sent Perez Henao to Colombia, which in turn extradited Perez Henao on August 28, 2013, to the United States to face the current charges.
“For over a decade, Perez Henao – one of the most powerful and prolific drug lords in recent history – controlled dozens of heavily-armed workers in his drug trafficking organization and oversaw the manufacture and distribution of over 80 tons of cocaine into the United States,” said U.S. Attorney Ferrer. “Perez Henao will now spend the next three decades of his life in prison. With this sentence, one of the largest cartel heads in Colombian history was brought to justice.”
DEA Special Agent in Charge Mark R. Trouville stated, “Diego Perez-Henao, one of the last leaders of the North Valley Cartel, was responsible for smuggling more than 80 tons of cocaine into the United States. He used violence and intimidation to line his greedy pockets at the expense of his own people and had no regard for those who would consume this addictive poison. Today’s sentencing is a reminder that there is no place to hide, the DEA along with our domestic and international law enforcement partners will continue to pursue and prosecute those who engage in drug trafficking into our borders.”
“Diego Perez-Henao was a notorious, international drug kingpin who for years profited from the shipment and sale of illegal drugs,” said Ken Sena, Acting Assistant Special Agent in Charge, FBI Miami. “His illicit career was brought to an end through close cooperation with our law enforcement partners.”
The indictment of Perez Henao is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA and FBI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commends the outstanding investigative efforts of DEA, FBI, the DEA Andean Region and their Colombian law enforcement partners. The case was prosecuted by Assistant U.S. Attorneys Adam Fels and Daren Grove.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Clifton, N.J., Bank Robber Sentenced to 55 Months in PrisonRead the Press Release
Newark, N.J. – A man who admitted using a note to rob the Valley National Bank in Clifton, New Jersey, was sentenced today to 55 months in prison, U.S. Attorney Paul J. Fishman announced.
Wayne Winner, 50, of Nutley, New Jersey, pleaded guilty on April 8, 2014, to an information charging him with robbing the bank on Jan. 4, 2013. U.S. District Judge William H. Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Winner admitted to entering the Valley National Bank in Clifton, New Jersey on Jan. 4, 2013, and handing a bag and a note to a bank teller which read, “No joke, loose bills, no dye, in a hurry.” He also admitted he intended to intimidate the teller, who placed cash in the bag before Winner left the premises.
Winner was sentenced to 40 months in prison for the April bank robbery. Judge Walls imposed the additional 15 months, to run consecutively for a total of 55 months, because Winner violated the terms of his supervised release following a prior federal bank robbery conviction – by robbing the Clifton bank. In addition to the prison term, Judge Walls sentenced Winner to a year of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, along with the Passaic County Prosecutor’s Office and the Clifton Police Department for their work leading to Winner’s conviction.
The government is represented by Assistant U.S. Attorneys Josh Hafetz and Courtney Oliva of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Assistant Federal Public Defender Peter Carter Esq., Newark
Charleston Pedophile Sentenced to 15 Years in Federal PrisonRead the Press Release
Defendant possessed images of child pornography including ones he took himself
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Stephen Wayne Laton, Jr., 40, of Charleston, W.Va., was sentenced to 15 years of imprisonment followed by 20 years of supervised release for possession of child pornography. The sentence was handed down by United States District Judge John T. Copenhaver, Jr., in Charleston.
Laton admitted to possessing sexually explicit photographs of a minor under the age of 12, including photos that he took of himself engaging in sexual contact with the child. He kept the pornographic images on a computer and USB drive at his residence in Charleston.
“This defendant’s crimes are horrific,” said U.S. Attorney Goodwin. “Adults who prey on and victimize children in this most horrible way must be identified, arrested, prosecuted and punished. We will not stand by and allow this kind of perversion to go undetected or unpunished. This conviction and the imposition of the sentence today is a victory for justice and for the safety of our children.”
The Federal Bureau of Investigation and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
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 http://www.justice.gov/usao/wvs/PSCpage.html.
Buffalo Man Pleads Guilty to Gun ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Alexy Diaz, 31, of Buffalo, N.Y., pleaded guilty to possession of a firearm by an armed career criminal, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum sentence of 15 years in prison, a maximum of life, a fine of $250,000 or both.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that on November 22, 2011, the defendant possessed a firearm at 1160 Kensington Avenue in Buffalo. Diaz was previously convicted of three violent felony or serious drug offenses in state court making him and armed career criminal.The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation’s Safe Streets Task Force.
Sentencing is scheduled for November 25, 2014 at 1:30 p.m. before Judge Arcara.Atlantic County, N.J., Man Sentenced to 57 Months in Prison for Trafficking over $100,000 Cartons of Contraband CigarettesRead the Press Release
Charges Include Participation in Separate $2 Million Mortgage Fraud Scheme
CAMDEN, N.J. - An Egg Harbor Township, New Jersey, man was sentenced today to 57 months in prison for trafficking millions of dollars in contraband cigarettes, laundering the proceeds through his South Jersey store and participating in a $2 million mortgage scheme in New York, U.S. Attorney Paul J. Fishman announced.
Muhammad Shafique, 44, previously pleaded guilty before U.S. District Judge Noel L. Hillman to charges of conspiracy to traffic contraband cigarettes, conspiracy to commit money laundering and conspiracy to commit wire and bank fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From June 2010 through February 2012, Shafique engaged in a large-scale operation to traffic 149,668 cases of contraband cigarettes and defraud New Jersey of more than $4 million dollars in tax revenue. Shafique purchased the cigarettes from undercover officers and then laundered the proceeds through the bank account of Get & Go Supermarket in Pleasantville, New Jersey, a store he purchased in part with funds from the scheme.
Shafique was also involved in a separate conspiracy to use stolen identities to fraudulently obtain mortgage loans on properties in New York. Using falsified identification documents and straw buyers posing as the actual homeowners, Shafique and other conspirators defrauded various banks and lenders out of almost $2 million.
In addition to the prison term, Judge Hillman sentenced Shafique to serve five years of supervised release and ordered him to pay restitution of $4,046,382 for the cigarette trafficking and an additional $1,405,000 for the mortgage fraud
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Robin Shoemaker, and special agents of the FBI in New Jersey and New York, under the direction of Special Agent in Charge Aaron T. Ford and Assistant Director in Charge George Venizelos, respectively.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden, New Jersey.
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Defense counsel: Jose Luis Ongay Esq., Philadelphia
Armed Career Criminal from Albuquerque Pleads Guilty to Firearms Charges Arising out of Armed Robbery in Santa FeRead the Press Release
ALBUQUERQUE – Elias Atencio, 37, of Albuquerque, N.M., pleaded guilty this morning to federal firearms charges under a plea agreement that requires the imposition of a 22 year prison sentence. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 1st Judicial District Attorney Angela R. “Spence” Pacheco, and Acting Special Agent in Charge Mark Murray of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
U.S. Attorney Damon P. Martinez said that Atencio was being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Firearms in the hands of convicted felons are a serious threat to public safety,” said 1st Judicial District Attorney Angela R. “Spence” Pacheco. “The District Attorneys’ partnership with the U.S. Attorney’s Office is integral to reducing violence throughout New Mexico by removing armed felons from our communities.”
Acting Special Agent in Charge Mark Murray stated, “The reduction of firearms violence is a priority for ATF. Anytime we can take a prohibited possessor and crime guns off the streets, our communities are safer places.”
Atencio was charged in March 2013, in a three-count indictment with being a felon in possession of a firearm and ammunition; committing commercial robbery in violation of the Hobbs Act; and brandishing a firearm during a crime of violence. According to the indictment, Atencio committed the three offenses on Feb. 23, 2012, in Santa Fe County, N.M. At the time, Atencio was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including armed robbery, forgery, aggravated assault with a deadly weapon, and burglary.
During today’s proceedings, Atencio entered guilty pleas to the two firearms offenses charged in Counts 1 and 3 of the indictment. In his plea agreement, Atencio admitted that on Feb. 23, 2012, he unlawfully possessed a .45 caliber semiautomatic pistol. Atencio admitted brandishing the firearm when he robbed the Walgreens store located at 1096 St. Francis Drive in Santa Fe, N.M.
Atencio was arrested in this case in April 2013, after he was transferred to federal custody from state custody. Atencio remains detained pending his sentencing hearing, which has yet to be scheduled.This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Santa Fe Police Department with assistance from the 1st Judicial District Attorney’s Office. Assistant U.S. Attorneys Lynn W.Y. Wang and Linda Mott are prosecuting the case.
Albuquerque Woman Pleads Guilty to ATM Robbery Spree in Summer 2013Read the Press Release
ALBUQUERQUE – Dominique Dickens, of Albuquerque, N.M., pleaded guilty this morning to committing a series of robberies in the summer of 2013.
Dickens and her co-defendant, Kelvin L. Dickerson, also of Albuquerque, were arrested in Dec. 2013, on an eight-count indictment charging them with conspiracy and seven Hobbs Act robberies. According to the indictment, between June 2013 and early Sept. 2013, the duo engaged in a scheme to rob employees of businesses engaged in interstate commerce in Bernalillo County, N.M. Dickens drove Dickerson to automatic teller machines (ATMs) where he robbed individuals who were making deposits. Dickens picked up Dickerson after he committed the robberies and drive him away.
Dickerson entered a guilty plea to all eight counts of the indictment on July 2, 2014, and admitted that between June 28, 2013 and Sept. 5, 2013, he conspired with Dickens to rob individuals as they were making deposits into ATMs. Dickerson admitted robbing seven individuals during this time period. His victims were employed by One Main Financial, Loan Max Title Loans, Church’s Chicken, National Insurance, Sonic and Radio Shack, all of which are businesses engaged in interstate commerce.
Today Dickens pled guilty to a conspiracy charge and three Hobbs Act robbery charges and admitted conspiring with Dickerson to interfere with interstate commerce by robbing individuals who were making deposits at ATMs on behalf of their business employers. Dickens specifically admitted aiding and abetting Dickerson in robbing the victims by driving him to the vicinity of the ATMs and then driving him away from the crime scenes on three occasions.
Sentencing hearings have not been scheduled for Dickens and Dickerson. Each faces a maximum statutory penalty of 20 years in prison on each charge to which they pleaded guilty.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the worst of the worst anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from our communities for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Admitted Armed Career Offender Pleads Guilty to Illegally Possessing Multiple Stolen FirearmsRead the Press Release
SHREVEPORT, La. –A Bossier Parish man pleaded guilty to illegally possessing multiple firearms, U.S. Attorney Stephanie A. Finley announced today.
Donald W. “Duck” Reyenga, 49, of Bossier City, La., pleaded guilty before U.S. District Judge S. Maurice Hicks to one count of possession of a firearm by a person previously convicted of a felony. According to evidence presented at the guilty plea, members of the Bossier Combined Narcotics Task Force learned Reyenga was attempting to sell stolen firearms. On April 17, 2014, agents scheduled a controlled purchase at a Bossier City hotel. There Reyenga sold a Hi-Standard, model Double 9, .22 caliber revolver; a Savage model 93 .22LR caliber rifle; and ammunition. His sale of these stolen firearms was recorded and he was immediately arrested. Agents later recovered another stolen rifle that Reyenga had sold that morning along with other items stolen from residences in Red River Parish. During the guilty plea hearing, Reyenga admitted he was an Armed Career Offender. Reyenga has numerous previous felony convictions in Bossier and Caddo parishes including attempted manslaughter, burglary, attempted aggravated burglary, distribution of marijuana, possession of cocaine, and illegal possession of stolen things.
Reyenga faces 15 years to life in prison, a maximum of five years of supervised release and up to a $250,000 fine. Sentencing was set for December 15, 2014.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bossier Combined Narcotics Task Force conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case as part the Department of Justice Project Safe Neighborhoods initiative. This initiative is designed to reduce firearm crimes by using federal statutes to remove dangerous and persistent felons from the community.
17 Schuele Boys Gang Members and Associates Indicted on Drug Trafficking ChargesRead the Press Release
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has handed down an indictment charging 17 members and associates of the Schuele Boys Gang, a group which operated in the Schuele Street area of the East Side of Buffalo, with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and 28 grams or more of crack cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
In the indictment, the Government is also seeking the forfeiture of $250,000 in United States currency, money believed to be the proceeds of drug trafficking activities, as well as firearms and ammunition.
Named in the indictment are:
• Antwan Garner, 29, Buffalo
• Aaron Glenn, 41, North Tonawanda
• Jerome Grant, 33, Buffalo
• James Hicks, 44, Buffalo
• Xavier Hill, 42, Buffalo
• Demetrius Holmes, 23, Buffalo
• Damario James, 32, Buffalo
• Fred Johnson, 21, Buffalo
• Ikeem Lyons, 21, Buffalo
• Benjamin Peoples, 25, Buffalo
• Demario Robbins, 23, Buffalo
• Michael Robertson, 24, Buffalo
• Spencer Rogers, 50, Buffalo
• Antwon Steward, 31, Buffalo
• Shawntorrian Travis, 34, Buffalo
• Andre Wise, 36, Buffalo
• Marcel Worthy, 30, BuffaloAssistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the original complaint that was filed in the case, the investigation utilized wire and electronic communications, confidential sources, controlled purchases of narcotics, and physical and video surveillance, to identify conspirators associated with the Schuele Boys Gang distribution network. The complaint further states that in addition to buying and selling illegal narcotics, the defendants were also involved in committing acts of violence including shootings.
The members and associates are alleged to have attempted to thwart law detection by law enforcement officers through the frequent changing of cellular telephones. The defendants also are alleged to have used other counter-surveillance techniques, including utilizing and frequently changing rental vehicles, employing evasive driving techniques, and speaking in coded language.
The indictment is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
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.
5 August 2014
Wisconsin Man Sentenced to Prison for violating food, drug and cosmetic actRead the Press Release
United States Attorney James L. Santelle announced that Shon Tay Dessart (age: 46) of Reedsville, Wisconsin was sentenced in federal court to one year in prison after being convicted in June following a jury trial of violating the Food, Drug, and Cosmetic Act.
Dessart operated a business known as EDS Research Supplies out of a residence he owned in Reedsville, Wisconsin. At the residence, Dessart manufactured and sold prescription drugs using raw materials he purchased from China and then marketed the drugs over the Internet. Among the products Dessart sold were drugs containing the active ingredients found in prescription drugs approved to treat erectile dysfunction (such as Viagra, Cialis, and Levitra), hair-loss (such as Propecia), as well as albuterol and anti-estrogen drugs. Other products included clenbuterol, a FDA-approved drug for use only in horses, not humans.
Trial testimony provided by several United States Food and Drug Administration (FDA) doctors described the potential harmful effects of using these drugs without a prescription. The FDA witnesses also described potentially harmful effects of merely handling some of the drugs in the forms sold by Dessart, including certain powder forms.
Dessart claimed that the drugs were “for research only” and not intended for human consumption but marketed the drugs on websites dedicated to body building and sold the drugs in various colors and flavors (including sugar-free flavors). Dessart was convicted of 23 felony violations of the Food, Drug, and Cosmetic Act, including operating an unregistered manufacturing facility and distributing prescription drugs without a prescription. The jury found that, in committing these offenses, Dessart had acted with the intent to defraud or mislead the FDA
In announcing this sentence, United States Attorney James L. Santelle stated: "the United States Department of Justice pursued this important prosecution to protect our residents from the significant danger posed by the unauthorized manufacture and sale of drugs. In addition to defrauding the Food and Drug Administration in its beneficial, public-oriented function, the defendant misled consumers of his unapproved drugs and threatened their physical health and condition. I commend the FDA's Office of Criminal Investigations, the United States Postal Inspection Service, and our state and local law enforcement partners in Manitowoc for their excellent investigative work in bringing this fraudulent operation to an end."
“The manufacture and sale of potentially dangerous unapproved prescription drugs poses a serious threat to the public’s health,” said John J. Redmond, Special Agent in Charge of the Chicago Field Office of the FDA’s Office of Criminal Investigations. “We will continue to guard against those who would seek to defraud and mislead the FDA and endanger the public.”
This case was investigated by the FDA’s Office of Criminal Investigations, and the United States Postal Inspection Service, with substantial assistance from the Manitowoc County Metro Drug Unit, the Manitowoc County Sheriff’s Department, and the Two Rivers Police Department.
The case was prosecuted by Assistant U.S. Attorney Matthew L. Jacobs of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Clint Narver of the FDA’s Office of Chief Counsel.
Wichita Man Pleads Guilty to Bank RobberyRead the Press Release
WICHITA, KAN. A Wichita man pleaded guilty Tuesday to bank robbery, U.S. Attorney Barry Grissom said.
Craig E. Applebee, 59, Wichita, Kan., pleaded guilty to one count of bank robbery. Charges filed in May in federal court in Wichita alleged that on May 15, 2014, he robbed the Credit Union of America at 212 S. Ridge Road. He gave the teller a note demanding money. After the teller put the money in a white plastic trash bag, Applebee fled the bank.
Police used a GPS tracking device hidden in the money stolen from the bank to locate Applebee’s car. They stopped the car and arrested him in the 3800 block of West Central.
Sentencing is set for Oct. 23. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Westminster Business Owner Pleads Guilty to Tax EvasionRead the Press Release
Baltimore, Maryland – Ramon Anthony Jadra, age 47, of Westminster, Maryland pleaded guilty today to tax evasion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.“The longevity and scope of Mr. Jadra’s scheme to embezzle corporate funds from the Raloid Corporation is simply astonishing,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Mr. Jadra cheated both his own company by illegally diverting corporate funds to himself and the American taxpayer by evading paying taxes on the substantial income he earned from these actions. Today’s plea is an important step in finally bringing this defendant to justice after so many years of engaging in illegal activity.”
According to his plea agreement, Jadra was the president and majority shareholder of Raloid Corporation, a family-owned business located in Reisterstown, Maryland. Raloid manufactured parts for the defense and aerospace industries. Beginning in 2008, Jadra fraudulently diverted company funds to himself.Jadra carried out his scheme by causing checks to be written on Raloid’s bank account in the names of actual companies with which Jadra or Raloid had business dealings with in the past, but which were not owed the amounts shown on the checks. These checks totaled $495,950 between 2008 and 2011. In an effort to avoid triggering the requirement that banks are required to file a currency transaction report in connection with financial transactions involving more than $10,000 in cash, Jadra caused all of the checks to be issued in amounts of $9,500 or less.
As part of this scheme, Jadra established a check cashing account at a liquor store in Reisterstown, where he cashed fraudulently obtained checks totaling $368,350. Jadra then deposited $316,585 of these funds in a checking account he had established in the name of DIA Solutions, a shell company that did not actually conduct any business, again in amounts less than $10,000.
In the spring of 2010, Jadra implemented a new aspect of his scheme. He hired an attorney to incorporate a company named DIA Solutions in Georgia, and established a bank account under DIA Solutions’ name. Jadra then falsely advised his father and Raloid’s controller that DIA Solutions, an independent consulting firm, was entitled to receive 5% of the payments Raloid received on a contract DIA Solutions had helped it obtain that was worth over $6 million. Jadra instructed Raloid’s controller that he should issue a check to DIA Solutions for 5% of the amount of every payment that Raloid received on this contract. DIA Solutions had not in fact provided any goods or services to Raloid and had played no role in obtaining the contract in question. Once Jadra received these checks, totaling $313,218.02, he deposited them into the DIA Solutions bank account and then converted the money to his personal use.
Finally, in 2010 and 2011, Jadra implemented a third aspect of his fraudulent scheme. Raloid’s manufacturing processes generated quantities of scrap metal, which it sold to two other companies. However, Jadra withheld this information from Raloid’s controller, who was left under the impression that Raloid had to pay a company to haul away the scrap materials from the plant. This enabled Jadra to intercept checks from the two companies that were tendered to Raloid to pay for scrap metal it had sold, deposit the funds in the DIA Solutions bank account, and convert these funds to his own use. In all, Jadra derived $91,249.75 from this aspect of his scheme.
Jadra used the majority of the embezzled funds for largely unsuccessful on-line stock trading. Other embezzled funds were used as follows: $50,000 down payment on a new 2012 BMW 535i costing $73,775.70; $14,512.58 for home renovations; $7,500 to buy a boat trailer; $31,295 to buy a watercraft; and a $15,929 down payment on a new Harley Davidson MC Screamin’ motorcycle costing $48,416.82.
As a result of the schemes, from 2008 to 2011, Jadra fraudulently converted $900,418 from Raloid, and failed to pay $283,481 in taxes on this fraudulently obtained money.
Jadra faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Catherine C. Blake scheduled sentencing for December 5, 2014 at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the IRS- Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.Warren Man Sentenced to Nearly 13 Years in Prison for Firearms and Narcotics ViolationsRead the Press Release
A Warren man was sentenced to nearly 13 years in prison for illegally selling firearms, heroin and cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Lewis Powell, 37, was sentenced to 155 months in federal prison by U.S. District Judge Donald Nugent. Powell pleaded guilty in April to one count of conspiracy to possess with intent to distribute heroin and cocaine and one count of being an unlicensed dealer willfully engaged in the business of dealing firearms.
"This defendant trafficked in drugs and guns, including some with obliterated serial numbers," Dettelbach said. "This sentence will hopefully make the Mahoning Valley a bit safer."
Powell sold heroin to undercover officers on multiple occassions. He also sold 20 firearms, including three with obliterated serial numbers, according to statements made in court.
This case was prosecuted by Assistant U.S. Attorneys Daniel J. Riedl and David M. Toepfer, following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the TAG Task Force, the Ohio Bureau of Criminal Investigation and Identification, the Warren Police Department, the Trumbull County Sheriff’s Office, the U.S. Marshal’s Service, the Youngstown Police Department and the Ravenna Police Department.
Two Milwaukee Men Indicted in Sex Trafficking Conspiracy and Related Trafficking OffensesRead the Press Release
Today, a federal grand jury in Milwaukee returned a 15-count superseding indictment charging two Milwaukee men, Paul Carter aka “Pimpin’ Paul” and David Moore aka “King David” with conspiracy, sex trafficking and related offenses spanning from the years 2007 to 2013.
Carter, 44, and Moore, 46, both of Milwaukee, were each previously indicted, Carter for two counts of sex trafficking and Moore for sex trafficking, conspiracy and solicitation of a crime of violence. The 15-count indictment returned today charges the two defendants jointly in four additional counts of conspiracy, sex trafficking, and labor trafficking, and charges each defendant with additional sex trafficking offenses, for a total of six additional counts against defendant Carter and eight additional counts against defendant Moore. Both defendants are charged with sex trafficking of both adults and minors.
If convicted, Carter and Moore each face a sentence of up to life imprisonment.
The case was investigated by the Human Trafficking Task Force for the Eastern District of Wisconsin, which includes law enforcement officers from FBI, Homeland Security Investigations, Wisconsin Division of Criminal Investigation and the Milwaukee Police Department. The case is being prosecuted by Assistant United States Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division’s Human Trafficking Prosecution Unit.
An indictment is merely an accusation, and each defendant is presumed innocent until proven guilty.
Two Men Sentenced to Prison, Third Pleads Guilty, for Racketeering Conspiracy/Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man who is a reputed associate of the Genovese Crime Family was sentenced today to prison for his role in a racketeering conspiracy and tax evasion conspiracy, U.S. Attorney Paul J. Fishman announced. Also today, a New York man was sentenced to prison and a Hudson County, New Jersey, man pleaded guilty in connection their respective parts in the scheme.
John Breheney, a/k/a “Fu,” 49, of Little Egg Harbor, New Jersey, was sentenced to 38 months in prison. He previously pleaded guilty before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court, to an information charging him with conspiracy to violate the Racketeer Influenced and Corrupt Organizations, or RICO, statute by participating in the activities of the Genovese Crime Family of La Cosa Nostra through a pattern of racketeering activity and through the collection of unlawful debt. He also pleaded guilty to tax evasion.
Patsy Pirozzi, 75, of Suffern, New York, was also sentenced today to 22 months in prison. Pirozzi previously pleaded guilty before Judge Cecchi to an information charging him with conspiracy to violate the RICO statute.
And Eric Patten 37, of Bayonne, New Jersey, pleaded guilty today before Judge Cecchi to an information charging him with conspiracy to violate the RICO statute.
According to documents filed in this case and statements made in court:Joseph Lascala, 80, of Monroe, New Jersey, was the alleged “capo” and a made member of the Genovese family operating in northern New Jersey. He directed the criminal activities of a smaller group of associates, referred to as a crew, whose activities included illegal gambling and the collection of unlawful debt.
Joseph Graziano, 77, of Springfield, New Jersey, was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Dominick J. Barone, 44, also of Springfield, New Jersey, worked with Graziano in carrying out the daily activities of the website. Both men conspired with the Genovese Crime Family of La Cosa Nostra in the operation of Beteagle. Graziano and Barone pleaded guilty on July 29, 2014, to their roles in the racketeering conspiracy, each admitting that they were associates of the Genovese Crime Family. Beteagle, through the individuals that owned, operated, and controlled it, was a “criminal enterprise” that operated in interstate and foreign commerce.Lascala’s organized crime crew and the criminal enterprise joined forces to allow traditional organized crime members and associates to use the Internet and current technology to conduct traditional organized crime by engaging in and profiting from illegal sports betting through the website. Associates of the crew were given access to Beteagle and were considered “agents.” Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” or bookies, under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Associates of the crew paid out winnings or collected losses in person. If a bettor failed to pay his gambling losses, the crew used their LCN status and threats of violence to collect on these debts.The agent or sub-agent paid a fee to the website for each bettor added to a package. Barone and others made weekly collections of cash in furtherance of the scheme.
Breheney, Pirozzi and Patten each pleaded guilty to being associates of and conspiring with the Genovese crime family.
Mark Sanzo, Robert Scerbo, William Bruder, Michael O’Donnell, Graziano, Barone, Salvatore Turchio, 48, of Little Egg Harbor, New Jersey and Jose Gotay, 76, New Milford, New Jersey have also pleaded guilty to their role in this racketeering conspiracy and await sentencing.
As to the remaining defendants, the charges and allegations contained in a criminal complaint sworn in May 2012 are merely accusations and they are presumed innocent unless and until proven guilty.
In addition to the prison terms, Judge Cecchi sentenced Breheney three years of supervised release, fined him $16,000 and ordered him to pay forfeiture of $400,000. Pirozzi was also sentenced to three years of supervised release and ordered to pay forfeiture of $31,400.
The conspiracy count to which Patten pleaded guilty carries a maximum potential punishment of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Dec. 3, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant United States Attorneys Serina M. Vash and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
14-281
Defense counsel:
Breheney: Anthony J. Pope Jr. Esq., Newark
Pirozzi: Michael D’Alessio Jr. Esq., Roseland, New Jersey
Patten: Alan Dexter Bowman Esq., NewarkPatten, Eric Information
Two Men Sentenced to Prison for Producing and Selling False Identification DocumentsRead the Press Release
STATESVILLE, N.C. – Two men involved in a ring that produced and sold false identification documents were sentenced to prison today by U.S. District Judge Richard L. Voorhees in Statesville, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The ring leader, Crescencio Lopez-Cruz, 28, of Newton, N.C. was sentenced to 48 months in prison, followed by one year of supervised release. His brother, Wilber Lopez-Cruz, 25, also of Newton was sentenced to 24 months in prison, followed by one year of supervised release.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Guy Fallen, Special Agent in Charge of the Social Security Administration, Office of the Inspector General (SSA-OIG), Atlanta Field Division; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); Steven M. Watkins, Director of the North Carolina Division of Motor Vehicles License and Theft Bureau (NC DMV L&T); Sheriff Coy Reid of the Catawba County Sheriff’s Office and Chief Bob Lane of the Sparta Police Department.
Crescencio and Wilber Lopez-Cruz pleaded guilty in July 2013 to conspiracy to produce and transfer fraudulent identification documents, producing fraudulent identification documents and aggravated identity theft. Crescencio Lopez-Cruz also pleaded guilty to transferring fraudulent identification documents, falsely representing a Social Security number and making false immigration documents.
Three other members involved in the conspiracy have already been sentenced. The defendants’ brother, Sixto Lopez-Cruz, 20, of Newton pleaded guilty to conspiracy to produce and transfer fraudulent identification documents and was sentenced in May 2014 to time-served and to one year of supervised release. The defendants’ sister, Rosalba Lopez-Cruz, 21, of Newton, pleaded guilty to conspiracy to produce and transfer fraudulent identification documents and falsely representing a social security number. She was sentenced in May 2014 to time-served plus one year of supervised release. The defendants’ brother-in-law, Mario Tercero-Cruz, 34, also of Newton, pleaded guilty to conspiracy to produce and transfer fraudulent identification documents and was sentenced in May 2014 to time-served and to one year of supervised release.
According to filed documents and today’s sentencing hearings, in September 2012, law enforcement began investigating the conspirators for their involvement in an illegal scheme to produce and sell false identification documents, in Newton and elsewhere. The false documents included alien registration cards, immigration residency cards, Social Security cards, and State licenses, among others. According to court records, some of the false identification documents contained fictitious information and some contained “real” information of individuals whose identities had been stolen. Court records show that, typically, the defendants took photographs of their customers and incorporated them into the counterfeit documents. Depending on the type and quality of documents, customers paid anywhere from $200 to $650 per transaction. According to court records, while executing a search warrant at Crescencio and Wilber Lopez-Cruz’s residence, law enforcement seized equipment used to produce the fraudulent documents, including a computer, a printer and a laminator.
Crescencio and Wilber Lopez-Cruz have been in custody since March 2013. Upon designation to a federal facility they will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was handled by HSI, SSA-OIG, NC SBI, NC DMV L&T, the Catawba County Sheriff’s Office and Sparta Police Department. The prosecution was handled by Assistant United States Attorney Kenneth M. Smith.
Title Goes HereFairfax Man Pleads to Creating and Selling Counterfeit Postage StampsRead the Press Release
ALEXANDRIA, Va. – Brian Kim, 38, of Fairfax, Virginia, pleaded guilty today to defrauding the U.S. Postal Service by counterfeiting and selling approximately $76,000 in postage stamps at two packaging centers he owned and operated in northern Virginia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Kim pleaded guilty to a criminal information containing one count of mail fraud. He faces a maximum penalty of 20 years in prison when he is sentenced on Nov. 7, 2014. Kim also has agreed to pay restitution in the amount of $76,000, representing the total amount of illicit gains from the fraud.
In a statement of facts filed with the plea agreement, Kim admitted that from January to October 2013, he counterfeited postal stamps that had been originally printed on a USPS-authorized postage meter, and he then affixed those stamps to packages and letters that customers brought to his packaging centers. Neither the customers who purchased the stamps nor the USPS employees who picked up the packages were aware of Kim’s scheme.
Kim’s packaging centers were located in Fairfax and Arlington, Virginia. On one representative day (Aug. 12, 2013), Kim caused the mailing of letters and packages bearing 80 counterfeit stamps, with a total value of $395.70. On Oct. 15, 2013, postal inspectors seized approximately $23,974.59 worth of counterfeit stamps while executing search warrants at Kim’s businesses.
This case was investigated by the U.S. Postal Inspection Service. Special Assistant U.S. Attorney William E. Johnston and Assistant U.S. Attorney Kosta S. Stojilkovic are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-239.
Three Charged in Connection with Stock Manipulation SchemeRead the Press Release
Three men who allegedly manipulated penny stocks, and then laundered the proceeds by purchasing precious metals, were charged today in U.S. District Court in Tacoma with conspiracy to commit securities fraud and conspiracy to launder monetary instruments, announced U.S. Attorney Jenny A. Durkan. MIKHAIL GALAS, 24, of Vancouver, Washington was arrested in Long Beach, California after he arrived on a flight from Portland, Oregon. He will make his initial appearance in U.S. District Court in Los Angeles. CHRISTOPHER MROWCA, 24, was arrested in Bradenton, Florida and will make his initial appearance in Tampa. ALEXANDER HAWATMEH, 23, of Salem, Oregon is incarcerated in Oregon on an unrelated charge and will appear in federal court at a later date. In addition to the arrests, searches were conducted in Vancouver, Washington, Bradenton, Florida, Salem, Oregon and Boulder, Colorado.
“Manipulative trading in penny stocks can lead to big profits for swindlers at the expense of small investors who buy the hype,” said U.S. Attorney Jenny A. Durkan. “The Securities and Exchange Commission is working closely with our office to hold these market manipulators accountable.”
In addition to the criminal complaint filed today, the Securities and Exchange Commission also filed a civil case against the men.
According to the criminal complaint, between December 2011 and April 2012, the men engaged in a scheme to make it appear that a particular penny stock was being actively traded. During that period the men accounted for 85% of the trades in the particular stock related to a purported flea market business in Florida. The conspirators allegedly engaged in “matched trades” where one sold shares and the other bought shares to make it appear investors were interested in the company. In fact the penny stock had little value and no business that would generate significant revenue or income. In addition to the trades to make it appear there was interest in the stock, the men sent fraudulent and misleading “blast” e-mails through promotional websites and email addresses under their control with the intent of increasing demand for the stock. The blast emails enticed other unknowing investors to buy the stock – then the men sold their shares, earning a profit of more than $223,000. CHRISTOPHER MROWCA and ALEXANDER HAWATMEH then engaged in a scheme to launder the proceeds of the illegal stock manipulation scheme by passing the money through third party accounts and ultimately purchasing gold and silver bars.
Conspiracy to commit securities fraud is punishable by up to five years in prison and a $250,000 fine. Conspiracy to launder monetary instruments is punishable by up to 20 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Katheryn Kim Frierson.
Texan Pleads Guilty to Kidnapping Arkansas ManRead the Press Release
MONROE, La. –A Texan pleaded guilty to his part in kidnapping an Arkansas man and lying to an FBI agent, U.S.Attorney Stephanie A. Finley announced today.
Aldo Cantu, 20, of Lufkin, Texas, entered a conditional guilty plea to one count of kidnapping and one count of lying to an FBI Special Agent to U.S. Magistrate Judge Karen L. Hayes. The plea will become final when accepted by U.S. District Court Judge Robert G. James. According to evidence presented at the guilty plea hearing, Cantu conspired with Anthony Segura, also of Lufkin, Texas, and others, to kidnap a man from his Pine Bluff, Ark., home at gunpoint on November 16, 2014. They drove the victim to a Lake Providence, La., service station and there the victim escaped. East Carroll Parish Sheriff’s deputies responded. The defendants later lied to FBI Special Agents saying they had not traveled to Arkansas that night and did not participate in the kidnapping. Anthony Segura pleaded guilty to kidnapping and lying to an FBI Special Agent on July 30, 2014.
Cantu and Segura face a maximum of life in prison and five years of supervised release for kidnapping, and a maximum of five years in prison and three years of supervised release for lying to an FBI Special Agent. They both also face a $250,000 fine. The defendants’ sentencing date is scheduled for November 4, 2014.
The Federal Bureau of Investigation conducted this investigation with the assistance from the East Carroll Parish Sheriff’s Department. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case as part of Project Safe Neighborhoods, a nationwide Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
Stockton Man Sentenced to 10 Years in Prison for Drug and Gun ChargesRead the Press Release
SACRAMENTO, Calif. — Erik Moreno, 19, of Stockton, was sentenced today by United States District Judge Lawrence K. Karlton to 10 years in prison for distributing methamphetamine in a case resulting from the Operation Gideon IV investigation, United States Attorney Benjamin B. Wagner announced.
Operation Gideon IV was an ATF surge that targeted violent criminals in an effort to dismantle criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into some of the most violent criminals in Stockton and surrounding areas. Operation Gideon IV ran from January to April 19, 2013, charging 55 individuals and seizing 84 firearms.
“This lengthy prison sentence will remove a dangerous criminal who has plagued our neighborhoods by selling drugs,” stated Special Agent in Charge Joseph M. Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “The success of this investigation is attributed to the excellent undercover work that was conducted and the solid partnership between ATF, the Stockton Police Department, and the United States Attorney’s Office.”
According to court documents, law enforcement conducted an extensive investigation into the drug and gun dealing activities of Moreno and his co-defendants, Luis Magana and Juvenal Junez. On March 11, 2013, Moreno and Magana met an undercover ATF agent at the Kmart parking lot at 2181 East Mariposa Road in Stockton. During the meeting, Moreno sold the undercover agent approximately one-quarter pound of methamphetamine for $2,200. During a second meeting, on March 22, 2013, Moreno met an undercover ATF agent at the same parking lot and sold the undercover agent approximately one-quarter pound of methamphetamine for $1,920 and a HI-Point semi-automatic pistol for $350.
In April 2014, Judge Karlton sentenced Luis Magana to 10 years in prison and sentenced Juvenal Junez to four years and nine months in prison.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Christiaan Highsmith prosecuted the case.
Spice and Bath Salts Dealer SentencedRead the Press Release
NEWPORT NEWS, Va. – Ryan Fernandes, age 30 of Gloucester, Va., was sentenced today to 204 months imprisonment and three years of supervised release. This followed his November 12, 2013 guilty plea to Conspiracy to Distribute Analogues.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, made the announcement after the sentence was imposed by United States District Judge Mark S. Davis in Newport News.
Fernandes was indicted by a federal grand jury on April 10, 2013, for his activities as the owner/operator of the Treasure Box on George Washington Highway in Gloucester, Virginia.
In a statement of facts filed with his plea agreement, the defendant admitted to conspiring with others to distribute and possess with intent to distribute a variety of analogue drugs, commonly referred to as “Spice” and “Bath Salts,” between January 2012 and July 2012.This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigations, the United States Postal Inspection Service, the Virginia State Police Tri-Rivers and Peninsula Task Forces the United States Air Force Office of Special Investigations and the Gloucester County Sheriff’s Office. Assistant United States Attorney Eric M. Hurt prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Shiprock Woman Sentenced to Federal Prison for Aiding Brother who set Fire to Former Girlfriend's ResidenceRead the Press Release
ALBUQUERQUE – Christina Thompson, 33, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this afternoon to 15 months in federal prison followed by two years of supervised release for aiding and abetting her brother in committing arson. She also was ordered jointly with her brother to pay $57,415.02 in restitution to the Navajo Housing Authority to pay for damage caused by their criminal conduct.
Christina Thompson and her twin brother Dan Curtis Thompson were arrested in Oct. 2013, on an indictment charging them with maliciously setting fire to an occupied rental unit at the Navajo Housing Authority in Ojo Amarillo, located on the Navajo Indian Reservation, on Jan. 9, 2013.
On Feb. 18, 2014, Dan Thompson pled guilty to the indictment and admitted setting fire to his former girlfriend’s residence on Jan. 9, 2013. Court filings reflect that Thompson resided in the victim’s apartment until she ejected him following a “forceful physical interaction” with him. As Thompson’s resentment towards the victim grew, he began putting into place plans to burn her residence. Christina Thompson drove Thompson to the victim’s residence on Jan. 9, 2013, where he shattered a window so he could unlock the door and enter the residence. Once inside, Thompson poured gasoline in the residence. After igniting the gasoline, Thompson fled from the residence with his sister’s assistance. Thompson admitted that he did not check to see if anyone was in the residence when he lit the fire, and that he burned the victim’s residence to retaliate against her.
Christina Thompson entered a guilty plea to the indictment on April 11, 2014, and admitted helping her brother set fire to the victim’s residence by driving him to the residence. She also admitted helping her brother flee after he set the victim’s residence on fire.
Dan Thompson was sentenced on June 24, 2014, to 35 months in federal prison followed by five years of supervised release. Thompson, together with his sister, must pay $57,415.02 in restitution to the Navajo Housing Authority.
This case was investigated by the Shiprock Division of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.Seven South Florida Residents Charged in Conspiracy to Distribute Performance Enhancing Drugs to Underage High School and Professional AthletesRead the Press Release
In Separate Case, Three Miami-Dade County Residents Charged in Conspiracy to Distribute and Attempted Possession of Molly
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce that seven individuals have been charged with conspiring to distribute anabolic steroid testosterone to underage high school and professional athletes.
Charged in this investigation are Anthony Publio Bosch, 50, of Key Biscayne, Carlos Javier Acevedo, 35, of Miami, Yuri Sucart, 52, of Miami, Jorge Augustine Velazquez, a/k/a “Ugi,” 43, of Miami, Christopher Benjamin Engroba, 25, of Miami, Lazaro Daniel Collazo, a/k/a “Lazer” and “Laser,” 50, of Hialeah, and Juan Carlos Nuñez, 48, of Fort Lauderdale. The charges stem from an over 21-month-long investigation by DEA, which focused on the illegal distribution of testosterone by the charged defendants in Miami-Dade County, and elsewhere. Specifically, the investigation focused on the operators of several anti-aging clinics in Miami, recruiters of these clinics, and a black market distributor of testosterone. These anti-aging clinics were incorporated under several different corporate names: Biogenesis of America, LLC; Biokem, LLC; Revive Miami, LLC; and others by the same group of people who occasionally worked together from 2008 through 2012.
In addition, the investigation also uncovered a separate conspiracy which involved Acevedo and the alleged illegal distribution of 3,4-Methylenedioxy-N-Methylcathinone Hydrochloride, a Schedule I controlled substance. The controlled substance 3,4-Methylenedioxy-N-Methylcathinone Hydrochloride is commonly referred to as “molly.” Charged in a separate case with conspiring to distribute molly are Giovanny Brenes, 35, and Jorge Canela, Jr., 25; and charged with attempted possession of molly is Carlos Luis Ruiz, 34, all of Miami.
“The defendants charged today are alleged to have provided easy access to dangerous concoctions of performance enhancing drugs (PEDs) to impressionable high school kids and professional athletes on the promise of playing better, recovering faster from injury and having more energy,” said U.S. Attorney Wifredo A. Ferrer. “Bosch and his network of recruiters and black market suppliers ignored the serious health risks posed to their so-called “patients,” all for a profit. Simply put, doping children is unacceptable – it is not only wrong and illegal, but dangerous. Cheating doesn’t pay and individuals like Bosch and his co-defendants, who distributed PEDs to athletes and, more importantly, to our children, will be held accountable for their actions.”
“Anthony Bosch, the self-acclaimed “Best Fake Doctor Ever” has turned in his lab coat for an orange jumpsuit,” said DEA Special Agent in Charge Mark R. Trouville. “Mr. Bosch’s alleged actions were a danger to the minors and adults who consumed his concoctions. I’m so proud of the men and women of the DEA and our law enforcement partners who conducted this investigation, which focused on greedy drug traffickers, who exploited athletes of all ages for their personal gain.”
The cases announced today include:
1. United States v. Anthony Publio Bosch, Case No. 14-20555-CR-Gayles
Bosch was charged by information with conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846. The conspiracy charge against Bosch alleges that beginning in at least October 2008 through December 2012, Bosch operated various anti-aging clinics in Miami. Through these anti-aging clinics, the defendant conspired with recruiters of high school and professional athletes, as well as a black market distributor of testosterone, to distribute testosterone in Miami-Dade County, and elsewhere. Many of Bosch’s clients thought he was a doctor. However, Bosch did not have a license to practice medicine in the State of Florida, or anywhere else, nor did he have any kind of license or authorization from the DEA to dispense or prescribe Schedule III drugs, like testosterone. Bosch is expected to be arraigned today.
If convicted, Bosch faces a maximum possible statutory sentence of 10 years in prison.
2. United States v. Carlos Javier Acevedo, Case No. 14-20556-CR-Gayles
Acevedo was charged by information with conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846; and with conspiracy to distribute molly, in violation of Title 21, United States Code, Section 846. Acevedo is expected to be arraigned today.
If convicted, Acevedo faces a maximum possible statutory sentence of 10 years in prison for the conspiracy to distribute testosterone count and 20 years in prison on the conspiracy to distribute molly count.
3. United States v. Yuri Sucart, et al., Case No. 14-20550-CR-Altonaga
Yuri Sucart, Jorge Augustine Velazquez, a/k/a “Ugi,” Christopher Benjamin Engroba, Lazaro Daniel Collazo, a/k/a “Lazer” and “Laser,” and Juan Carlos Nuñez, were charged in an eight count indictment for their participation in a conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846. In addition, Sucart has been charged with five counts of distribution of testosterone; Engroba has been charged with one count of distribution of testosterone; and Velazquez has been charged with six counts of distribution of testosterone, all in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2. Velazquez was also charged with one count of obstruction of justice, in violation of Title 18, United States Code, Sections 1503 and 2. The defendants are expected to be arraigned today.
If convicted, the defendants face a maximum possible statutory sentence of 10 years in prison for the conspiracy to distribute testosterone count. As to the substantive distribution of steroids counts, Sucart, Velazquez and Engroba face a maximum possible statutory sentence of 10 years in prison as to each count. Velazquez faces a maximum possible statutory sentence of 10 years in prison on the obstruction of justice count.
4. United States v. Giovanny Brenes, et. al., Case No. 14-20551-CR-Moreno
Giovanny Brenes and Jorge Canela, Jr. were charged in a four count indictment for their participation in a conspiracy to distribute molly, in violation of Title 21, United States Code, Section 846. In addition, Brenes has been charged with one count of distribution of molly, in violation of Title 21, United States Code, Section 841(a)(1); Canela, Jr. has been charged with one count of possession with intent to distribute molly, in violation of Title 21, United States Code, Section 841(a)(1); and Carlos Luis Ruiz was charged with one count of attempted possession of a controlled substance, in violation of Title 21, United States Code, Section 844(a) and Title 21, United States Code, Section 846.
If convicted, Brenes and Canela, Jr. face a maximum possible statutory sentence of 20 years in prison for each of the following counts: conspiracy to distribute; distribution and possession with intent to distribute. Ruiz faces a maximum possible statutory sentence of one year in prison on the attempted possession of a controlled substance count.
Mr. Ferrer commended the investigative efforts of the DEA Miami Tactical Diversion Squad, which consists of the DEA, Miami-Dade Police Department, Hollywood Police Department, Fort Lauderdale Police Department and the City of Miami Police Department. These cases are being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Sharad A. Motiani.
An information and indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachments: Acevedo, Carlos Javier - Information (PDF)
Bosch, Anthony - Information (PDF)
Brenes, Giovanny et al - Indictment (PDF)
Sucart, Yuri et al - Indictment (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Rochester Man Indicted for Threatening to Kill the President, Governor, and Lieutenant GovernorRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Brandon Correa, 30, of Rochester, N.Y., with making a direct threat to kill the President of the United States, Barack Obama. The defendant is also accused of making online threats to kill New York Governor Andrew Cuomo and New York Lieutenant Governor Robert Duffy. Each count is punishable by five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the indictment, the defendant posted online threats to kill President Obama. Correa also posted threats to kill Governor Cuomo and Lieutenant Governor Duffy. The defendant was interviewed shortly after posting the threats to kill the President and told a Secret Service Agent that the President was “evil” and that he had to “die”.
The defendant was arraigned before U.S. Magistrate Judge Jonathan W. Feldman this afternoon. Correa was released and is due back in court on August 8, 2014 at 2:00 p.m. before U.S. Magistrate Judge Marian W. Payson.
The Indictment is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, and Investigators from the New York State Police, Protective Services Unit, under the direction of Major Stephen Nevins.
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.Portland Woman Sentenced for Bank FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Sharon Conley, 56, of Portland, Maine, was sentenced by United States District Judge D. Brock
Hornby to 3 years imprisonment, 3 years supervised release and $72,282.03 restitution for one count of wire fraud, one count of mail fraud, one count of Social Security fraud and one count of aggravated identity theft. Conley pleaded guilty on April 3, 2014.According to court documents, Paul Bridges and Susan Winslow lived on Peaks Island where Paul Bridges owned and operated a handyman business called “Call Paul” which provided repair services to the residents of Peaks Island. In about 2005, Bridges employed their friend and neighbor on Peaks Island, Sharon Conley, as a contract cleaner for Call Paul, and later, as a bookkeeper for Call Paul. In this way, Conley gained access and control of Bridges’ and
Winslow’s personal and business information and financial accounts.
In November of 2009, without Susan Winslow’s knowledge or permission, Sharon
Conley obtained a Chase Bank credit card issued in Susan Winslow’s name. In order to do so, Conley pretended to be Winslow and provided Chase Bank with Winslow’s identifying information including Winslow’s date of birth, Social Security number, and mother’s maiden name in order to confirm her identity. Conley used the card to purchase personal items for herself and to pay bills such as her monthly telephone bill. Between about February 2010 until about October of 2010 when Paul Bridges and Susan Winslow discovered Conley’s fraud and confronted Conley about it, Conley made approximately $15,585 worth of unauthorized, personal purchases using the Chase Bank credit card.
At sentencing, the government presented information that Conley also made unauthorized use of other Call Paul business accounts, Susan Winslow’s personal bank account, a home equity line of credit on the Bridges/Winslow home, and of US Air Mastercard convenience checks. Conley also double-billed one of Call Paul’s customers.
In pronouncing sentence, Judge Hornby observed that, sadly, the court has been seeing more case of financial fraud, some in banks; others in small businesses. Such cases cause a serious breach of trust. They affect the social fabric of a community and cause divisions, especially on a small island such as Peaks. He affirmed that the evidence made clear that the defendant was guilty, and that any belief that she was an innocent person railroaded was mistaken.
The case was investigated by the United States Postal Inspection Service and Portland
Police Department.Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
Vanessa Clay, a/k/a “Vanessa Hatcher,” 61, of Philadelphia, PA, was charged by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant applied for Supplemental Security Income from the Social Security Administration, and Housing Benefits from the Department of Housing and Urban Development, under her true Social Security Number, while working, and concealing her ownership of the home for which she was receiving HUD benefits, under a second Social Security Number and alias. The defendant’s alleged actions resulted in a loss to the government of over $117,000.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, a three year period of supervised release, restitution to the government of $117,471.09, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the Philadelphia Housing Authority Office of Audit and Compliance. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with False Statements to BanksRead the Press Release
Matthew Amato, 31, of Philadelphia, PA, was charged today in an information with one count of making false statements to banks, announced United States Attorney Zane David Memeger.
If convicted, Amato faces a maximum possible sentence of 30 years imprisonment, five years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service is being prosecuted by Assistant United States Attorney Paul L. Gray.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Businessman Indicted on Fraud and Tax ChargesRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging Chaka Fattah, Jr., 31, of Philadelphia, in a scheme to defraud banks and the Internal Revenue Service of hundreds of thousands of dollars. The indictment charges that between 2005 and 2012, Fattah, Jr.: made false statements to banks to obtain loans; made false statements to banks and the Small Business Administration to settle loans for less than what was owed; filed false federal income tax returns; failed to pay federal taxes; and stole from the Philadelphia School District, which had received federal funds for its operations.
The charges were announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward Hanko, and IRS Special Agent-in-Charge Akeia Connor.
According to the indictment, Fattah, Jr., obtained numerous business lines of credit from banks through false and fraudulent statements to local banks and used the funds primarily for personal expenses - including car payments, gambling debts, restaurant and club expenses, utilities, clothing, electronics, retail purchases, charitable donations, jewelry, legal fees, and personal credit card expenses - rather than business expenses, as the loan terms required. The indictment alleges that these false statements involved fictitious earnings information that Fattah, Jr., supplied for entrepreneurial companies which Fattah claimed he operated, including 259 Strategies, LLC (“259 Strategies”) and Chaka Fattah, Jr. & Associates. Fattah, Jr., claimed that 259 Strategies provided educational consulting, diversity consulting & audit services, technical assistance, and community relations, and organizational development services to a select group of clients. He claimed that Chaka Fattah, Jr. & Associates performed research and consulting concerning the development of computer centers.
According to the indictment, Fattah, Jr., received a loan from United Bank in 2011 for $50,000 intended for "working capital to support business operations." Instead, it is alleged that he used the funds to make car payments, to pay down over $15,000 in personal credit card debt, and to pay in excess of $33,000 in gambling debts at area casinos. The charges total approximately $206,000 in bank loans received through false misrepresentations or fraud.
The indictment also alleges that Fattah, Jr., defaulted on several lines of credit and provided false information to two banks, to the United States Small Business Administration, which had insured the bank loans, and to a Small Business Administration investigator, to attempt to settle the debts for less than what was owed. The indictment charges that Fattah, Jr., falsely claimed that 259 Strategies was out of business at the time he was attempting to settle his debts in 2010, and that he was earning only $2,500 per month. The indictment charges that, in fact, during 2010, Fattah, Jr.’s 259 Strategies was intact and, through this company, he was earning between $6,250 per month and approximately $37,500 per month.
Fattah, Jr.’s, is also charged with theft from a program receiving federal funds, that is, stealing funds supplied by the federal government to the Philadelphia School District. The indictment alleges that, at times, Fattah, Jr.’s, was the Chief Operating Officer of a Philadelphia company which provided educational services to "at risk" and other students through contracts with the school district. The indictment charges that Fattah, Jr.’s, provided false expense information and inflated salary figures for teachers and administrative staff on budgets submitted to the school district, which made payments consistent with the budgets provided. Thus, the charges allege, Fattah concealed the theft of the funds from the school district.
Finally, the indictment charges that Fattah, Jr.’s, filed false federal income tax returns for tax years 2005, 2006, 2008, 2009, and failed to timely pay federal income tax of approximately $51,141 on reported income in excess of $150,000 during 2010.
If convicted of all charges, Fattah, Jr., faces a substantial term of imprisonment, restitution to the IRS, a fine of up to $13,000,025, a special assessment of $2,300, and up to five years of supervised release.
The case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Paul L. Gray.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pearl Resident Pleads Guilty to Theft of Government FundsRead the Press Release
Jackson, Miss - Former attorney Jason Zebert, 45, of Pearl, was sentenced today by U.S. District Judge Carlton W. Reeves, Jr. to 24 months in prison followed by three years of supervised release for theft of government funds, U.S. Attorney Gregory K. Davis announced. He was also ordered to repay $198,669.14 to the Department of Veterans Affairs.
Zebert worked as an attorney and fiduciary representing veterans. He pled guilty to stealing funds from the Department of Veterans Affairs which had been entrusted to him for spending solely on behalf of the veterans he represented.
The case was investigated by the Department of Veterans Affairs Office of Inspector General and prosecuted by Assistant U.S. Attorney Pat Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Pair of Brothers Among Five Charged in Conspiracy to Traffic Guns to New Jersey from South CarolinaRead the Press Release
Sixth Defendant Charged With Related Firearms Offense in Investigation That Intercepted at Least 22 Weapons Bound for South Jersey
CAMDEN, N.J. – Five Camden County, N.J., men and a woman from South Carolina are charged with federal firearms violations following an investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that resulted in multiple arrests last night and this morning and the confiscation of numerous guns bound for the streets of Camden, Clementon and Lawnside, New Jersey, U.S. Attorney Paul J. Fishman announced.
Marcus Rutling, 32, of Camden and Saluda, South Carolina; Joseph Rutling, 23, of Camden; Katelynn Schippnick, 24, of Greeleyville, South Carolina: Shawn Tribbett, 32, of Camden, and Anthony Gilmore, 24, of Lawnside, are each charged with conspiracy to traffic in firearms without a license. Tribbett and a sixth defendant: Lewis DiMatessa, 37, of Clementon, are also each charged with being a felon in possession of a firearm.
Tribbett was arrested late yesterday and Gilmore, Schippnick and DiMatessa were arrested this morning by ATF special agents. The Rutlings were already in statecustody on unrelated charges.
Tribbett, Gilmore and DiMatessa made their initial appearance in federal court today before U.S. Magistrate Judge Joel Schneider. All three were remanded to custody. Schippnick made her initial appearance in U.S. District Court for the District of South Carolina before U.S. Magistrate Judge Kay West and was released on bond. She has been ordered to appear in New Jersey before Judge Schneider on Aug. 12, 2014. Joseph and Marcus Rutling will make their initial appearances on Aug. 26, 2014.
According to documents filed in this case and statements made in court: Over the course of the investigation, ATF special agents used a confidential informant to purchase at least 22 firearms from illegal gun brokers and dealers, including an assault rifle, shotguns, handguns and ammunition, as well as a bullet-proof vest.
The Rutlings sold guns – including the assault rifle – and ammunition out of several locations in Camden and Lawnside. The complaints charging them detail several transactions, including a sale in which the defendants provided the informant with a short-barreled shotgun out of their house in Camden. The men said they obtained the firearms in South Carolina and brought them to New Jersey on a weekly basis, at times using Amtrak trains to transport the guns.
Gilmore sold handguns, shotguns and a bullet proof vest, mostly from a house on LaPierre Avenue in Lawnside, with Tribbett and Schippnick serving as brokers for the transactions. Tribbett, a previously convicted felon, brokered a deal in which DiMatessa, also a convicted felon, sold a rifle to the informant.
U.S. Attorney Fishman credited the ATF special agents, under the direction of ATF Special Agent in Charge George Belsky in Newark, with the ongoing investigation, and thanked special agents from the Drug Enforcement Administration, under the direction of DEA Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon Police Departments, for their work leading to the arrests.
The conspiracy to traffic in firearms without a license charge carries a maximum potential penalty of five years in prison, and the felon-in-possession of a firearm charge carries a maximum potential penalty of 10 years in prison. Each count also carries a maximum $250,000 fine.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jason Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations and the defendants are considered innocent unless and until proven guilty.14-282
Defense counsel:
Shawn Tribbett: Brian O’Malley Esq., Haddon Heights, New Jersey
Lewis DiMattesa: Michael Riley Esq., Mount Holly, New Jersey
Anthony Gilmore: Assistant Federal Public Defender Christopher O’Malley Esq., Camden
Marcus Rutling: Edward Borden Esq., Cherry Hill, N.J.
Joseph Rutling: Mark Catanzaro Esq., Moorestown, N.J.Rutling, Marcus Complaint
Rutling, Joseph Complaint
Tribbett, Shawn Complaint
Gilmore, Anthony Complaint
DiMatessa, Lewis Complaint
Schippnick, Katelyn ComplaintPair Face up to 30 Years Each in Federal Prison for Committing Armed Robberies of Dallas-Area BusinessesRead the Press Release
DALLAS — Two Dallas men, who admitted committing the armed robberies of several businesses in the Dallas area in 2012-2013, have pleaded guilty to federal charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Christopher Washington, 48, pleaded guilty, before U.S. Magistrate Judge Irma C. Ramirez to two counts of interference with commerce by robbery and one count of carrying and brandishing a firearm during and in relation to a crime of violence. In May, Darren Lewis, 45, pleaded guilty to three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
If the Court accepts the defendants’ plea agreements, the parties agree that a total range of 300 to 360 months’ imprisonment is appropriate for each defendant. Both are scheduled to be sentenced by U.S. District Judge Jane J. Boyle on September 25, 2014.
According to documents filed in the case, on October 30, 2012, Lewis entered a Hampton Inn and Suites in Desoto, Texas, inquired about room rates, looked around the lobby, and then left the hotel. Immediately afterwards, Washington entered the lobby and requested a room. He then pulled out a firearm, pointed it at the desk clerk, and demanded cash. Fearing for her life, the clerk complied. Washington then left the hotel and got into a waiting Ford expedition, driven by Lewis.
On November 6, 2012, Washington entered a La Quinta Inn in Cedar Hill, Texas, approached a desk clerk, displayed a shotgun, and while pointing it at the clerk, demanded money. The clerk complied and Washington left and got into a dark colored car, parked outside of the hotel lobby, driven by Lewis.
On November 6, 2012, Washington entered a La Quinta Inn in Cedar Hill, Texas, approached a desk clerk, displayed a shotgun, and while pointing it at the clerk, demanded money. The clerk complied and Washington left and got into a dark colored car, parked outside of the hotel lobby, driven by Lewis.
On January 28, 2013, Lewis entered a 7-Eleven store in Dallas, grabbed a candy bar from a shelf and then pulled out a silver handgun, pointed it at the clerk, and demanded money from the cash register. In fear for his life, the clerk complied. Lewis then fled the store and drove away in a maroon Ford Expedition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dallas, Duncanville, Desoto and Cedar Hill Police Departments investigated. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.
Ohio Man Sentenced for Credit Card Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 29-year-old Columbus, Ohio man has been sentenced for his part in a credit card scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mohamed Laye Dioubate, a naturalized citizen from Guinea, was sentenced to 33 months in prison today during a hearing before Judge Marcia Crone. In December 2013, Dioubate was found guilty by a jury of possessing 15 or more unauthorized access devices in December.
According to information presented in court, on June 27, 2012, Dioubate was stopped on Interstate-10 in Beaumont for a traffic violation. A search of the vehicle revealed 158 fraudulent credit cards, a laptop computer and a credit card encoder. The credit cards contained various names and account numbers and had been used in multiple fraudulent purchases throughout the country. In November 2012, Dioubate was stopped on two separate occasions, once in Missouri and once in Indiana. During each of those stops, he was again found in possession of multiple fraudulent credit cards. Dioubate was indicted by a federal grand jury in the Eastern District of Texas and charged with federal violations in April 2013.Citizens can visit the Federal Trade Commission’s website to learn more on how to protect themselves from identity theft schemes: http://www.consumer.ftc.gov/features/feature-0014-identity-theft.
This case was investigated by the Beaumont Police Department, U.S. Secret Service, St. Charles County, Missouri, Sheriff’s Office, and the Henry County, Indiana, Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Brit Featherston.
Monroe County Man Pleads Guilty to Participating in A Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 40-year-old Effort man pleaded guilty yesterday before U.S. Magistrate Judge Karoline Mehalchick to conspiring with others to distribute heroin in the Monroe County area during a six-month time period.
According to United States Attorney Peter Smith, the defendant, Kerion Johnson, admitted to committing the crime between November 2013 and April 22, 2014.
Johnson was charged in a criminal Information filed by the United States Attorney on June 4, 2014, following an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Johnson faces a potential maximum sentence of 20 years in prison and a $1 million fine. Johnson will be sentenced by Senior U.S. District Court Judge Richard P. Conaboy at a future date. Johnson was ordered to be detained in prison pending sentencing in the case.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.