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Tuesday 20 May 2014
Manhattan U.S. Attorney Announces Indictment of Rikers Island Correction Officer for Civil Rights Offense That Led to the Death of an InmateRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that a federal grand jury returned an Indictment against TERRENCE PENDERGRASS, a correction officer and former captain, on a civil rights charge arising out of his deliberately ignoring the urgent medical needs of a Rikers Island inmate who had ingested a corrosive disinfectant and later died, in violation of the inmate’s rights under the United States Constitution. PENDERGRASS was arrested on March 24, 2014, on a Complaint alleging the same charge.
According to the allegations contained in the Complaint and the Indictment:
Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his death, Jason Echevarria was an inmate incarcerated on Rikers Island in the Mental Health Assessment Unit for Infracted Inmates, a unit housing inmates who have committed infractions while incarcerated and who have been identified as needing mental health treatment.
On the afternoon of August 18, 2012, Echevarria swallowed a powerful disinfectant/detergent combination in powder form, commonly referred to as a “soap ball,” sometimes provided to inmates to assist in the cleaning and disinfecting of cells. The soap ball contained, among other things, ammonium chloride, a corrosive chemical that is life threatening if ingested.
After Echevarria swallowed the soap ball, Echevarria told a correction officer what had occurred and that he needed medical attention. That correction officer in turn informed PENDERGRASS, the captain – a supervisory correction officer – on duty at that time. PENDERGRASS responded that the correction officer should only call on PENDERGRASS if he needed help with the extraction of an inmate from a cell or if there was a dead body. A second correction officer similarly informed PENDERGRASS that Echevarria needed medical help. Notwithstanding these reports, PENDERGRASS failed to contact any medical personnel about Echevarria’s condition. The next morning, Echevarria was found dead in his cell.
PENDERGRASS, 49, of Howard Beach, New York, is charged in the Indictment with one count of deprivation of rights under color of law. He faces a maximum sentence of ten years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PENDERGRASS is scheduled to appear before District Judge Ronnie Abrams, to whom the Indictment has been assigned, on May 29, 2014, at 3:00 p.m.
The case is being handled jointly by the Office’s Civil Rights Unit and Public Corruption Unit. Assistant U.S. Attorneys Lara K. Eshkenazi and Daniel C. Richenthal are in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Man Posing as A Highly Decorated Navy Seal Charged with Defrauding Mchenry County CharityRead the Press Release
ROCKFORD — A California man was indicted today by a federal grand jury in Rockford on fraud charges. WILLIAM J. BURLEY, 34, of Yucaipa, Cal., was charged with three counts of wire fraud in connection with a scheme to defraud International Aid Services – USA, Inc. (“IAS America”), a non-profit charity formed in Idaho and based in Crystal Lake, Ill., and International Aid Services (“IAS”), a charitable international non-governmental organization headquartered in Stockholm, Sweden, of $30,000.
According to the indictment, four IAS employees were assaulted in Somalia, and three of the employees were then kidnaped. Burley, the indictment alleges, claimed he was an experienced operative who would assist IAS in negotiating with the Somalia captors and in rescuing the captured IAS employees. The indictment charges that in order to induce IAS and IAS America into hiring the defendant and his company, Burley falsely claimed to have been a highly decorated Navy SEAL, to have graduated from the Universities of Delaware and Maryland, to have attended numerous training facilities, to have been a consultant for the Navy, Department of Defense, and State Department, and to have been a law enforcement officer.
According to the indictment, as a result of the defendant’s false and fraudulent pretenses, representations, and promises, he received a total of $30,000 in the form of three wire transfers sent from the Crystal Lake Bank and Trust to the Bank of America in Redlands, California. One wire for $5,000 was sent on Aug. 20, 2012, and two wires for a total of $25,000 were sent on Aug. 30, 2012.
Each count of wire fraud carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The government is being represented by Assistant U.S. Attorney John G. McKenzie.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving the defendant’s guilt beyond a reasonable doubt.
Man Charged with Possessing a Firearm at the Rainbow BridgeRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Varapong Ruengvivatanakij, 33, formerly of Washington, D.C., was arrested and charged by criminal complaint with being a convicted felon in possession of a firearm. The charge carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on May 18, 2014, the defendant attempted to enter the United States at the Rainbow Bridge. During a secondary inspection by Customs and Border Protection officers, it was determined Ruengvivatanakij was a convicted felon and in possession of a 9 mm semi-automatic handgun in the trunk of his vehicle.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. on May 19, 2014 and was ordered detained.
The criminal complaint is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and officers of Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
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.Makers of Oxywater Indicted for Wire Fraud, Tax CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted Preston J. Harrison, 42, of Lewis Center, Ohio and his business partner, Thomas E. Jackson, 39, of Powell, Ohio alleging that they defrauded their company’s investors and diverted investors’ funds for their own personal use. Preston Harrison and his wife, Lovena E. Harrison, 41, are also charged with conspiracy and filing a false income tax return.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the indictment today following the defendants’ arrests.
According to court documents, Harrison and Jackson operated Westerville, Ohio-based Imperial Integrated Health Research and Development, LLC and developed a product called OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The indictment alleges that defendants engaged in a scheme to deceive the investors in their company about the structure, composition, finances, sales and profits of OXYwater in order to make the company appear to be a lucrative and profitable financial investment. Preston Harrison and Jackson allegedly produced and sent false and fraudulent statements intended to deceive investors, the ultimate purpose of such false statements being for Jackson and Preston Harrison to obtain money invested in the company and misappropriate it for their own personal use and household expenditures including the purchase of jewelry, an Escalade, a BMW, weapons, clothing and a swimming pool.
Jackson and Preston Harrison allegedly misappropriated more than $2 million of the investors’ funds between August 2010 and spring 2013. The indictment says that defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of defendants’ alleged conduct, investors lost approximately $9 million.
The indictment charges the Harrisons with conspiracy to obstruct the IRS and with filing a false tax return. Preston Harrison allegedly misappropriated approximately $1.1 million from his company. The indictment charges that he and his wife placed the money in an account in the name of Lovena Harrison’s daycare business, used the money for personal expenses, and did not report the money as income on their 2011 income tax return.
The 34-count indictment charges Preston Harrison and Jackson with one count of conspiracy to commit wire fraud and nine counts of wire fraud, each punishable by up to 20 years in prison. They are also charged with one count of conspiracy to commit money laundering and 20 counts of money laundering, each punishable by up to ten years in prison. The indictment charges each of the Harrisons with one count of conspiracy to obstruct the IRS and one count of filing a false tax return. Each count is punishable by up to five years in prison. Lovena Harrison is charged with one count of structuring financial transactions to evade reporting requirements, also punishable by up to five years in prison.
The indictment seeks a total of $1,134,250 in forfeiture from Preston Harrison and Jackson, including two vehicles, eight weapons, cash and the contents of a bank account, alleging that the amount represents the proceeds of the crimes.
The defendants appeared before U.S. Magistrate Judge Elizabeth Preston Deavers in Columbus today and were released on recognizance bonds. Senior U.S. District Judge James L. Graham is presiding over the case and will schedule all future proceedings.
U.S. Attorney Stewart commended the cooperative investigation by the IRS and FBI, and Assistant U.S. Attorney Laura Fulton, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
Machine Shop Worker Charged with Causing $1 Million Loss to Former EmployerRead the Press Release
VICTORIA, Texas - A federal grand jury in Victoria has indicted Jack Kennedy, 55, of Houston, for perpetrating a multi-year mail and wire fraud scheme, announced U.S. Attorney Kenneth Magidson. Kennedy’s fraud is alleged to have resulted in more than a $1 million loss to his former employer, Alcoa World Alumina, aka Alcoa – Point Comfort Operations, located in Calhoun County.
Kennedy was arrested yesterday. The indictment was returned under seal May 14, 2014, and unsealed today as he made his initial appearance before U.S. Magistrate Judge Jason B. Libby in Corpus Christi. At that time, he was ordered into custody pending a detention hearing and arraignment set for Friday, May 23, 2014, at 9:30 a.m.
According to the indictment, Kennedy was employed in the Alcoa machine shop, where he was responsible for inventorying and ordering parts, tools and supplies. For nearly four years, he allegedly ordered large quantities of these expensive items, many of which were not needed. According to the charges, Kennedy would then steal the items and sell them at a wholesale discount to a metalworking supply and salvage company in Tonawanda, N.Y.
The indictment further alleges that between 2008 and 2011, the N.Y. company routinely sent checks to Kennedy’s home address in Victoria via United Parcel Service totaling approximately $650,000. Kennedy would, in turn, mail boxes of the tools, parts and supplies from a Home Depot retail location near his home in Victoria, according to the indictment.
If convicted, Kennedy faces up to 20 years in federal prison without parole and a fine of up to $250,000.
The FBI investigated. Assistant U.S. Attorneys Jeffrey D. Preston and Hugo R. Martinez are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Local Lawyer Pleads Guilty to Felony OffenseRead the Press Release
Defendant Admitted Committing Perjury in Relation to a Bankruptcy Proceeding
DALLAS — Aaron Rene Ramirez, 43, of Plano, Texas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to an indictment charging one count of making a false statement under penalty of perjury, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in January 2009, Ramirez filed a voluntary petition under Chapter 13 of Title 11 in which he forged the signature of the listed debtor. He also falsely represented to the Court that the listed debtor had signed and authorized the filing of the petition and other bankruptcy related documents when he well knew that the petition was completely fraudulent and that the listed debtor did not authorize, nor have any knowledge of, the petition’s filing.
Aaron Ramirez faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. He will remain on bond pending sentencing, for which a date has not yet been set.
The U.S. Postal Inspection Service is investigating, and Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Lawrence Man Pleads Guilty to Stealing Federal Tax Refund ChecksRead the Press Release
BOSTON - A Lawrence man pleaded guilty today to theft of more than $230,000 in U.S. Treasury tax refunds.
Wilson Santana, 40, pleaded guilty to 34 counts of theft of public money. He was indicted in January of 2013 and is scheduled to be sentenced by U.S. District Judge George A. O’Toole on Sept. 4, 2014.
Between November 2011 and March 2012, Santana provided Robert Montero, a bank teller at Metro Credit Union in Lawrence, with 30 U.S. Treasury checks containing fraudulently obtained tax refunds to be negotiated through various bank accounts controlled by or associated with Santana. The U.S. Department of Treasury had issued the checks based on tax returns that later were determined to contain false information. For example, although the tax returns contained biographical information of real people in Puerto Rico, their addresses were falsely listed in New York and Massachusetts. The tax returns also contained false employment information. Santana, knowing that the tax return checks had been issued based on false information, negotiated them with Montero’s help at Metro West Credit Union in return for a fee. The 30 tax refund U.S. Treasury checks were worth $211,214.
Between March and April 2012, Santana sold four more U.S. Treasury checks containing fraudulently obtained tax refunds to Montero. Unbeknownst to Santana, those transactions were monitored by federal agents. The four U.S. Treasury checks contained $26,227 in tax refunds. In total, Santana stole or attempted to steal $237,227 of fraudulently obtained tax refunds. Montero pleaded guilty to theft of public money last September.
The maximum sentence under the statute is 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Stephen Marks, Acting Special Agent in Charge of the U.S. Secret Service, made the announcement today. The case is being prosecuted by Maxim Grinberg of Ortiz’s Health Care Fraud Unit.
Law School Admission Council Agrees to Systemic Reforms and $7.73 Million Payment to Settle Justice Department’s Nationwide Disability Discrimination LawsuitRead the Press Release
The Justice Department filed a joint motion today for entry of a landmark consent decree to resolve allegations that the Law School Admission Council (LSAC) engaged in widespread and systemic discrimination in violation of the Americans with Disabilities Act (ADA). Under the proposed consent decree, LSAC will pay $7.73 million in penalties and damages to compensate over 6,000 individuals nationwide who applied for testing accommodations on the Law School Admission Test (LSAT) over the past five years. The decree also requires comprehensive reforms to LSAC’s policies and ends its practice of “flagging,” or annotating, LSAT score reports for test takers with disabilities who receive extended time as an accommodation. These reforms will impact tens of thousands of test takers with disabilities for years to come.
The United States intervened in DFEH v. LSAC Inc., which was originally brought on behalf of California test takers in the U.S. District Court for the Northern District of California. The United States’ intervention expanded the case to ensure comprehensive and nationwide relief under Title III of the ADA for individuals with disabilities who request testing accommodations for the LSAT – a required examination for anyone seeking admission to an American Bar Association approved law school in the United States. The allegations in the complaint detail LSAC’s routine denial of testing accommodation requests, even in cases where applicants have a permanent physical disability or submitted thorough supporting documentation from qualified professionals and demonstrated a history of testing accommodations since childhood. Without the necessary accommodations, test takers with disabilities are denied an equal opportunity to demonstrate their aptitude and achievement level. The lawsuit further alleged that LSAC engages in discrimination prohibited by the ADA through its practice of flagging the LSAT score reports of individuals who received extended time as a testing accommodation, thereby identifying to law schools that the test taker is a person with a disability.
“This landmark agreement compels systemic reforms to LSAC’s treatment of test takers with disabilities and brings an end to LSAC’s stigmatizing practice of flagging the score reports of individuals with disabilities who require certain testing accommodations,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “If entered by the court, this decree will impact tens of thousands of Americans with disabilities, opening doors to higher education that have been unjustly closed to them for far too long. We congratulate LSAC for signing this agreement, which will compensate victims of past discrimination and provide a model for the provision of testing accommodations to test takers with disabilities on standardized examinations.”
“The participation of the U.S. Attorney’s Office in this important litigation sends a strong message that no discrimination of any kind will be tolerated in this district,” said U.S. Attorney Melinda Haag for the Northern District of California. “We are fully committed to ensuring equal access to all opportunities society has to offer, including education.”
Under the consent decree, LSAC has agreed to:
- put a permanent end to the practice of flagging the LSAT score reports of individuals with disabilities who take the LSAT with the common testing accommodation of extended time;
- pay $7.73 million to be allocated for a civil penalty, compensation to individuals named in the United States’ and other plaintiffs’ complaints, and a nationwide victims’ compensation fund;
- streamline its evaluation of requests for testing accommodations by automatically granting most testing accommodations that a candidate can show s/he has previously received for a standardized exam related to post-secondary admissions (such as the SAT, ACT or GED, among others); and
- implement additional best practices for reviewing and evaluating testing accommodation requests as recommended by a panel of experts (to be created by the parties).
Individuals who applied for testing accommodations from LSAC between Jan. 1, 2009, and May 20, 2014, may be eligible to receive a monetary award from a nationwide victims’ compensation fund. The claims administrator for the fund has not yet been determined; this information will be posted on LSAC’s website following entry of the consent decree by the court. Questions about the victims’ compensation fund should be directed to the claims administrator.
For more information or for a copy of the consent decree, please visit the ADA website. Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD).
Law School Admission Council Agrees to Systemic Reforms and $7.73 Million Payment to Settle Justice Department’s Nationwide Disability Discrimination LawsuitRead the Press Release
SAN FRANCISCO – The Justice Department filed a joint motion today for entry of a landmark consent decree to resolve allegations that the Law School Admission Council (LSAC) engaged in widespread and systemic discrimination in violation of the Americans with Disabilities Act (ADA). Under the proposed consent decree, LSAC will pay $7.73 million in penalties and damages to compensate over 6,000 individuals nationwide who applied for testing accommodations on the Law School Admission Test (LSAT) over the past five years. The decree also requires comprehensive reforms to LSAC’s policies and ends its practice of “flagging,” or annotating, LSAT score reports for test takers with disabilities who receive extended time as an accommodation. These reforms will impact tens of thousands of test takers with disabilities for years to come.
The United States intervened in DFEH v. LSAC Inc., which was originally brought on behalf of California test takers in the U.S. District Court for the Northern District of California. The United States’ intervention expanded the case to ensure comprehensive and nationwide relief under Title III of the ADA for individuals with disabilities who request testing accommodations for the LSAT – a required examination for anyone seeking admission to an American Bar Association approved law school in the United States. The allegations in the complaint detail LSAC’s routine denial of testing accommodation requests, even in cases where applicants have a permanent physical disability or submitted thorough supporting documentation from qualified professionals and demonstrated a history of testing accommodations since childhood. Without the necessary accommodations, test takers with disabilities are denied an equal opportunity to demonstrate their aptitude and achievement level. The lawsuit further alleged that LSAC engages in discrimination prohibited by the ADA through its practice of flagging the LSAT score reports of individuals who received extended time as a testing accommodation, thereby identifying to law schools that the test taker is a person with a disability.
“This landmark agreement compels systemic reforms to LSAC’s treatment of test takers with disabilities and brings an end to LSAC’s stigmatizing practice of flagging the score reports of individuals with disabilities who require certain testing accommodations,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “If entered by the court, this decree will impact tens of thousands of Americans with disabilities, opening doors to higher education that have been unjustly closed to them for far too long. We congratulate LSAC for signing this agreement, which will compensate victims of past discrimination and provide a model for the provision of testing accommodations to test takers with disabilities on standardized examinations.”
“The participation of the U.S. Attorney’s Office in this important litigation sends a strong message that no discrimination of any kind will be tolerated in this district,” said U.S. Attorney Melinda Haag for the Northern District of California. “We are fully committed to ensuring equal access to all opportunities society has to offer, including education.”
Under the consent decree, LSAC has agreed to:
- put a permanent end to the practice of flagging the LSAT score reports of individuals with disabilities who take the LSAT with the common testing accommodation of extended time;
- pay $7.73 million to be allocated for a civil penalty, compensation to individuals named in the United States’ and other plaintiffs’ complaints, and a nationwide victims’ compensation fund;
- streamline its evaluation of requests for testing accommodations by automatically granting most testing accommodations that a candidate can show s/he has previously received for a standardized exam related to post-secondary admissions (such as the SAT, ACT or GED, among others); and
- implement additional best practices for reviewing and evaluating testing accommodation requests as recommended by a panel of experts (to be created by the parties).
Individuals who applied for testing accommodations from LSAC between Jan. 1, 2009, and May 20, 2014 may be eligible to receive a monetary award from a nationwide victims’ compensation fund. The claims administrator for the fund has not yet been determined; this information will be posted on LSAC’s website following entry of the consent decree by the court. Questions about the victims’ compensation fund should be directed to the claims administrator.
For more information or for a copy of the consent decree, please visit the ADA website. Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD).
Assistant U.S. Attorney Melanie Proctor prosecuted the case, with the assistance of Tiffani Chiu and Jonathan Birch. The U.S. Attorney’s Office partnered with attorneys from the Disability Rights Section of the Civil Rights Division in the U.S. Department of Justice to achieve this landmark settlement.
(LSAC joint motion )
(LSAC consent decree )
Knoxville Man Sentenced to Twelve Years Imprisonment for Workers' Compensation FraudRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that Carlos Perry, 58, Knoxville, Tenn. was sentenced last week in the United States District Court for the Western District of Virginia in Abingdon to twelve years in federal prison.
Perry was also ordered to pay restitution in the amount of $324,914.70. Perry had previously pleaded guilty to one count of mail fraud.
According to evidence presented at the sentencing and guilty plea hearings by Assistant United States Attorney Zachary T. Lee, between January 2011 and February 2014, Perry developed a scheme in which he defrauded six different insurance companies of workers’ compensation benefits using false business and fictitious employees. An investigation by the United States Secret Service determined that Perry’s scheme entailed Perry impersonating an owner of six fictitious businesses located in Wise, Va., Johnson City, Tenn., Bristol, Va., and Abingdon, Va., in order to obtain workers’ compensation insurance. Perry then filed false injury claims on behalf of the fictitious employees.Perry received the checks sent by the insurance companies and impersonated the fictitious employees at doctor’s visits and in communications with the insurance companies. The United States Secret Service discovered that Perry utilized nineteen fictitious identities in the course of his scheme and used the social security numbers of numerous real persons to execute his fraud. On January 29, 2014, Perry was arrested by the United States Secret Service and the United States Marshals Service at a doctor’s office in Kingsport, Tenn., where he was impersonating one of the fictitious employees. As a result of Perry’s scheme, six separate insurance companies sustained a combined loss of $401,649.66.
The investigation of this case was conducted by United States Secret Service, United States Marshals Service, and the Virginia State Police. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Kankakee Man Sentenced to 13 Years in Federal Prison for Distribution of Crack CocaineRead the Press Release
Urbana, Ill. -- U.S. District Judge Michael P. McCuskey today sentenced Deshawn Lewis, 36, of Kankakee, Ill., to 157 months (13 years, 1 month) in the federal Bureau of Prisons for distribution of crack cocaine. Lewis was also ordered to serve eight years of supervised release upon his release from prison.
Lewis faced a mandatory minimum sentence of 10 years to life in prison based on two prior felony drug convictions. In 1997, Lewis was convicted in Kankakee County Circuit Court for unlawful delivery of a controlled substance and was sentenced to four years in the Illinois Department of Corrections. In 2004, Lewis was convicted for armed violence and sentenced to 20 years in the Illinois Department of Corrections. Lewis was released from state prison in September 2011 and remained on state parole when he was arrested on federal charges in January 2013.
Since Lewis was arrested on Jan. 16, 2013, by agents of the Kankakee Area Metropolitan Enforcement Group (KAMEG), he has remained in the custody of the U.S. Marshals Service. A federal grand jury indicted Lewis in February 2013, and on Dec. 18, 2013, Lewis pled guilty to one count of distribution of crack cocaine. Lewis admitted that on May 15, 2012, he distributed 49.8 grams of crack cocaine at a Kankakee gas station.
The charges resulted from an investigation conducted by the Kankakee Area Metropolitan Enforcement Group (KAMEG) and the Illinois State Police, with assistance from the Kankakee County State’s Attorney's Office. The case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
Justice Department Requires ConAgra, Cargill, CHS, Horizon Milling <br /> to Divest Four Significant Flour Mills to Go Forward with <br /> Ardent Mills Joint VentureRead the Press Release
The Department of Justice announced today that it will require ConAgra Foods Inc., Cargill Inc., CHS Inc., and Horizon Milling LLC to divest four competitively significant flour mills in order to proceed with the formation of Ardent Mills, a flour milling joint venture. The department said that the divestitures will preserve flour milling competition in four regions of the country encompassing large cities such as Los Angeles, Dallas, Minneapolis and the San Francisco/Oakland Bay Area, resulting in more competitive prices for wheat flour purchasers and ultimately lower prices for consumers who purchase wheat flour-based products, such as bread, cookies and crackers.
Ardent Mills would combine the flour milling assets of ConAgra Mills, a subsidiary of ConAgra Foods, and Horizon Milling, a joint venture between Cargill and CHS.
The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed joint venture. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit. The department was assisted in its investigation by the California Attorney General’s Office.
“Without the Antitrust Division’s required divestitures, the creation of Ardent Mills would have resulted in less competition in the sale of wheat flour, resulting in customers, such as industrial bakers and food service companies, paying higher prices for wheat flour and ultimately consumers paying more for products they enjoy in their everyday lives, such as bread, cookies and crackers,” said Deputy Assistant Attorney General for the Antitrust Division Renata B. Hesse. “The divestitures will ensure that competition for hard and soft wheat flour sales is preserved in regions surrounding Los Angeles, Dallas, Minneapolis and the Bay Area.”The department said that, without the divestitures, hard wheat flour prices would be higher in Northern and Southern California, as well as Northern Texas and the Upper Midwest. Hard wheat, which has high gluten content, is well suited for baking bread, rolls, bagels, pizza dough and similar hearty baked goods.
The department also said that prices would be higher for soft wheat flour in Southern California and Northern Texas if the deal proceeded unchanged. Soft wheat flour, which has low gluten content, is well suited for baked goods that are lighter and flakier, such as cakes, cookies and crackers. Both types of flour are made and sold by flour millers – including ConAgra Mills and Horizon Milling – to industrial bakers, food processors, food service companies, distributors and retail sellers of flour for home use.
The department’s complaint alleges that, in the relevant markets, the proposed joint venture would eliminate head-to-head competition between ConAgra Mills and Horizon Milling, increase the likelihood that flour milling capacity would be closed, and increase the likelihood of anticompetitive coordination among flour millers, which would raise flour prices for customers in the relevant markets. The proposed settlement requires the companies to divest to Miller Milling Company LLC, four mills: ConAgra Mills’ Oakland, California; Saginaw, Texas; and New Prague, Minnesota mills; and Horizon Milling’s Los Angeles mill. Miller Milling has only a minimal presence in the regions of concern; its acquisition of the divestiture mills will create a substantial, independent and economically viable competitor in each relevant market. The proposed settlement also prohibits the companies from exchanging information related to wheat purchases or use by customers to which the companies have sold wheat.
ConAgra Foods is a Delaware corporation with its principal place of business in Omaha, Nebraska. ConAgra Mills is one of the three largest flour millers in the country, operating 21 mills in the United States. In 2012, ConAgra reported revenues of $13.3 billion; ConAgra Mills reported revenues of $1.8 billion.
Horizon Milling is a joint venture that is 76 percent owned by Cargill and 24 percent owned by CHS. It is headquartered in Wayzata, Minnesota, and is one of the three largest flour millers in the country, operating 20 wheat flour mills in the United States. In 2012, Horizon reported revenues of approximately $2.5 billion.
Cargill is a privately held company incorporated in Delaware, with its headquarters in Wayzata. Cargill produces agricultural products and food ingredients; it also markets wheat to flour mills. Horizon Milling currently operates 15 former Cargill wheat flour mills, which Cargill contributed to Horizon when it was formed in 2002. In 2012, Cargill reported revenues of $133.8 billion.
CHS is a Delaware corporation headquartered in Inver Grove Heights, Minnesota. Its lines of business include the sale of grains and grain marketing services, animal feed, and food and food ingredients; it also markets wheat to flour mills. CHS owns five wheat flour mills in the United States, which it leases to the Horizon Milling joint venture. In 2012, CHS reported revenues of $40.1 billion.
Miller Milling Company LLC, which is headquartered in Minneapolis, is a subsidiary of Nisshin Seifun Group Inc., which is headquartered in Tokyo.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning this proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed settlement upon a finding that it is in the public interest.
Jordanian Shipping Company Pleads Guilty to Illegally Discharging Oily WasteRead the Press Release
Jordan-based Arab Ship Management Ltd. pleaded guilty today in federal court in Wilmington, Delaware, to one count of violating the Act to Prevent Pollution from Ships, the Justice Department and the U.S. Coast Guard announced.
In accordance with the terms of the plea agreement, Arab Ship Management Ltd. was sentenced to pay a criminal penalty totaling $500,000 and be placed on probation for two years, during which time ships operated by the company will be banned from calling on ports of the United States.
“The defendant violated environmental laws that protect our marine environment from harmful pollution,” said U.S. Attorney for the District of Delaware Charles M. Oberly III. “This conviction ensures that the defendant is held accountable with a criminal fine and a contribution to conservation efforts in coastal Delaware, as well as a two-year ban from United States ports. The message to the shipping industry is clear: environmental crimes at sea will not be tolerated.”
“This case demonstrates one way the Coast Guard acts to protect the environment,” said Captain Kathy Moore, U.S. Coast Guard Commander of Sector Delaware Bay. “Marine Inspectors detected serious problems with the ship’s operations. They dove into the details and worked with the Department of Justice and the Coast Guard Investigative Service to bring this case to an appropriate resolution.”
According to court documents and statements made in court, Arab Ship Management Ltd. operated the M/V Neameh, a 6,398 gross ton ocean-going livestock carrier. On March 28, 2013, the U.S. Coast Guard boarded the vessel in the Delaware Bay Big Stone Anchorage to conduct an inspection. The inspection and subsequent criminal investigation revealed heavy oil sludge inside the piping on the discharge side of the pollution prevention equipment leading directly overboard, where no oil sludge should be if the pollution prevention equipment is operated properly. Inspectors also discovered that the vessel’s piping arrangement had been modified in a prohibited manner so as to allow oil sludge to be pumped directly overboard. This prohibited piping arrangement was removed prior to the vessel’s arrival in Delaware. Also during the inspection, Coast Guard officers were presented with two oil record books which are required by law to be accurately maintained onboard the vessel. These two oil record books contained different and contradictory entries for the time period of Nov. 30, 2011, through Jan. 2, 2012, as well as fake oily waste disposal receipts.
This case was investigated by the U.S. Coast Guard Sector Delaware Bay, Coast Guard Marine Safety Detachment Lewes and the Coast Guard Investigative Service. The case is being prosecuted by Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice and Assistant U.S. Attorney Edmond Falgowski from the U.S. Attorney’s Office for the District of Delaware.Jordanian Shipping Company Pleads Guilty to Illegally Discharging Oily WasteRead the Press Release
WASHINGTON – Jordan-based Arab Ship Management Ltd. pleaded guilty today in federal court in Wilmington, Delaware, to one count of violating the Act to Prevent Pollution from Ships, the Justice Department and the U.S. Coast Guard announced.
In accordance with the terms of the plea agreement, Arab Ship Management Ltd. was sentenced to pay a criminal penalty totaling $500,000 and be placed on probation for two years, during which time ships operated by the company will be banned from calling on ports of the United States.
“The defendant violated environmental laws that protect our marine environment from harmful pollution,” said U.S. Attorney for the District of Delaware Charles M. Oberly III. “This conviction ensures that the defendant is held accountable with a criminal fine and a contribution to conservation efforts in coastal Delaware, as well as a two-year ban from United States ports. The message to the shipping industry is clear: environmental crimes at sea will not be tolerated.”
“This case demonstrates one way the Coast Guard acts to protect the environment,” said Captain Kathy Moore, U.S. Coast Guard Commander of Sector Delaware Bay. “Marine Inspectors detected serious problems with the ship’s operations. They dove into the details and worked with the Department of Justice and the Coast Guard Investigative Service to bring this case to an appropriate resolution.”
According to court documents and statements made in court, Arab Ship Management Ltd. operated the M/V Neameh, a 6,398 gross ton ocean-going livestock carrier. On March 28, 2013, the U.S. Coast Guard boarded the vessel in the Delaware Bay Big Stone Anchorage to conduct an inspection. The inspection and subsequent criminal investigation revealed heavy oil sludge inside the piping on the discharge side of the pollution prevention equipment leading directly overboard, where no oil sludge should be if the pollution prevention equipment is operated properly. Inspectors also discovered that the vessel’s piping arrangement had been modified in a prohibited manner so as to allow oil sludge to be pumped directly overboard. This prohibited piping arrangement was removed prior to the vessel’s arrival in Delaware. Also during the inspection, Coast Guard officers were presented with two oil record books which are required by law to be accurately maintained onboard the vessel. These two oil record books contained different and contradictory entries for the time period of Nov. 30, 2011, through Jan. 2, 2012, as well as fake oily waste disposal receipts.
This case was investigated by the U.S. Coast Guard Sector Delaware Bay, Coast Guard Marine Safety Detachment Lewes and the Coast Guard Investigative Service. The case is being prosecuted by Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice and Assistant U.S. Attorney Edmond Falgowski from the U.S. Attorney’s Office for the District of Delaware.
Johnson County Man Sentenced for Tampering with Federal WitnessRead the Press Release
KANSAS CITY, KAN. – A Johnson County man was sentenced Tuesday to 36 months imprisonment for tampering with a witness in a federal criminal case, U.S. Attorney Barry Grissom said.
A jury found Gary Sparks, 61, Edgerton, Kan., guilty of one count of tampering with a witness. During trial, prosecutors presented evidence that Sparks attempted to persuade a thirteen-year-old child to lie to investigators who were investigating his daughter, Stacy Ashley, on drug charges. Ashley pleaded guilty to one count of distributing Oxymorphone. In her plea, she admitted that on July 30, 2011, she distributed Oxymorphone to Joshua Auclair, who died from a drug overdose. Ashley was sentenced to 60 months imprisonment.
Grissom commended the Kansas Bureau of Investigation and Assistant U.S. Attorney Sheri McCracken for their work on the case.Jackson County Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsOn May 15, 2014, Willie Joe Strayhorn, a/k/a “Jo Jo,” 47, of Murphysboro, pled guilty to a one-count indictment charging Failure to Register as a Sex Offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between November 1, 2010, and September 4, 2013, in Jackson County. Evidence at the plea hearing established that Strayhorn was required to register as a sex offender under both Illinois law and the Sex Offender Registration and Notification Act (SORNA), because of a 1993 conviction for Aggravated Criminal Sexual Abuse in Jackson County Circuit Court. In July 2011, members of the United States Marshals Service Task Force found Strayhorn hiding in a closet in a Dyersburg, Tennessee, residence. Strayhorn had not registered in Illinois since August 2010 and never registered in Tennessee.
The offense carries a penalty of up to 10 years’ imprisonment, to be followed by a term of supervised release from 5 years to life, and a fine of $250,000. Strayhorn is currently being held without bond pending his September 12, 2014, sentencing hearing.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and the Murphysboro Police Department. The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
International Round-up Has Fifteen Arrested on Mississippi Federal Fraud ChargesRead the Press Release
Gulfport, Miss – Fifteen individuals were arrested today in South Africa, Canada, California, Wisconsin, and Indiana, pursuant to an eight-count federal indictment filed in the Southern District of Mississippi, announced U.S. Attorney Gregory K. Davis and Raymond Parmer, Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans. Another individual was arrested today in New York on a related Southern District of Mississippi complaint. Both the indictment and complaint were unsealed today.
The indictment alleges a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The Department of Justice Organized Crime Gang Section has filed a related indictment against three individuals in Charleston, South Carolina, and the U.S. Attorney’s Office for the Northern District of Georgia has a related complaint in Atlanta against two additional defendants.
The investigation was initiated in October, 2011, by HSI agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
Today’s arrests were the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The Department of Justice Office of International Affairs assisted in the provisional arrests of ten defendants in Pretoria, South Africa. Another defendant was arrested in Toronto, Canada, and the remaining defendants were arrested in the United States.
“Financial fraud is a danger to all Americans and a threat to everyone,” said U.S. Attorney Gregory K. Davis. “This round-up is continuing and powerful evidence of our commitment in federal law enforcement to aggressively identify, investigate and prosecute those who, through violation of federal criminal laws, pose a threat to the financial security of our citizens, communities and financial institutions. It is also evidence of the cooperation and partnership that exists between federal law enforcement and their international partners. Our special thanks go out to the various federal and international officers who not only assisted in the arrests of these individuals, but contributed significantly to the investigation that led us to this prosecution.”
“Financial crimes that threaten the health of our national economy and criminals who attempt to cheat law-abiding citizens out of their hard-earned money will continue to be a major investigative priority for HSI,” said Special Agent in Charge Raymond R. Parmer Jr. “This case illustrates HSI's practice of leveraging to the fullest extent possible domestic and international law enforcement partnerships in pursuit of justice.” Parmer oversees a five-state area of operations to include Mississippi, Alabama, Arkansas, Louisiana and Tennessee.
“Postal Inspectors have relentlessly pursued operators of illegal lotteries for more than 140 years, so these arrests are not the first and certainly won't be the last in our efforts to protect the public from these scams," said Inspector in Charge Robert Wemyss. Wemyss oversees a four-state area of operations to include Mississippi, Alabama, Louisiana and Texas.
The case in Mississippi will be prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert, and will be scheduled for trial after extradition of the defendants to Mississippi.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty.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.
Indictment Unsealed Charging Eight Individuals with Conspiracy to Distribute Oxycodone, Money LaunderingRead the Press Release
Aaron Peila Charged With Engaging In A Continuing Criminal EnterpriseSALT LAKE CITY - A federal indictment unsealed Monday afternoon in U.S. District Court in Salt Lake City charges eight individuals with conspiracy to distribute oxycodone, conspiracy to commit money laundering and money laundering. The indictment is the fifth and final indictment following a significant oxycodone distribution investigation. Including the defendants charged in the indictment unsealed Monday, 31 individuals have been charged as a part of the case.
Aaron Peila, age 31, who has lived in Utah and Nevada, is charged with engaging in a continuing criminal enterprise in the first count of the indictment. The indictment alleges Peila obtained substantial income and resources through his violations of federal drug and money laundering laws and that his actions were undertaken in concert with at least five other persons over whom he occupied a position of organizer, supervisor, or any other position of management.
Peila, who is serving a federal prison sentence for a firearms conviction, allegedly set up a distribution network for oxycodone in Utah. Many of the distributors involved in the network were previously indicted as a part of the ongoing investigation.
Also charged in the indictment unsealed Monday are Jonas Newell, age 29, of Provo; Candace Newman, age 27, of Las Vegas; Mark Jaffe, age 33, of Salt Lake City; Carolyn Barrera, age 30, of Salt Lake City; Kevin Lynch, age 53, of Las Vegas; and Jason Junior, age 45, and Syndi Junior, age 33, both of Pleasant Grove. Jaffe, Barrera, and Newell appeared in federal court Monday in Salt Lake City. Barrera was released on conditions. A detention hearing will be held Wednesday for Jaffe. Newell’s detention hearing will be Friday. Other defendants are making appearances in Idaho and Las Vegas this week.
The majority of counts in the indictment charge Peila and others named in the indictment with conspiracies to distribute oxycodone and conspiracy to commit money laundering from about May 2007 through various periods of time up to June 2012.
The continuing criminal enterprise charge carries a mandatory-minimum 20- year penalty with a maximum penalty of life and a maximum fine of $2 million. The drug trafficking conspiracy counts each have 20-year potential penalties with fines of $2 million. The money laundering counts carry a maximum penalty of 20 years and fines of up to $500,000.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being investigated by special agents of the DEA and IRS and Salt Lake City police officers. It is being prosecuted by the U.S. Attorney’s Office in Utah.
Huntington Man Pleads Guilty in Major Federal Drug SweepRead the Press Release
Huntington, W.Va. – George Antonio Newman, 37, of Huntington, pleaded guilty today to possession of cocaine with intent to distribute, United States Attorney Booth Goodwin announced. On April 15, 2013, as part of a larger investigation of Huntington-area drug activity, agents of the Drug Enforcement Administration (DEA) conducted a search of Newman’s residence, located at 1302 18th Street in Huntington. During the search, agents seized approximately an ounce of cocaine from the top of Newman’s refrigerator. Newman intended to distribute the cocaine. Agents also seized a loaded Taurus .410 handgun found on top of the cocaine.
As a result of the DEA investigation, Newman, his brother Kenneth Dewitt Newman (also known as “K-Kutta”), and 13 other individuals were indicted for their various roles in the distribution of cocaine, crack cocaine, prescription pills, heroin, MDMA (commonly known as Ecstasy) and marijuana. George Newman faces up to 20 years’ imprisonment and a $1 million fine when he is sentenced on August 18, 2014.
Chief United States District Judge Robert C. Chambers conducted today’s plea hearing.
Hudson County, N.J., Contractor Arrested, Charged with Paying Bribes to Fire OfficialRead the Press Release
NEWARK, N.J. – The owner of a general contracting company in West New York, N.J., was arrested at home in North Bergen, N.J., this morning by special agents of the FBI and charged with bribing a fire official to eliminate more than $8 million in outstanding fines on buildings with fire code violations, U.S. Attorney Paul J. Fishman announced.
Victor Coca, 48, of North Bergen, is charged by criminal complaint with one count of paying a bribe to a local government agent. He is scheduled to appear before U.S. Magistrate Judge Joseph A. Dickson this afternoon in Newark federal court.
According to the complaint filed today:
Two West New York buildings – one owned by Coca and one owned by a friend of his – had outstanding fines for fire code violations. Coca’s friend’s building – called “Building 1” in the complaint – had approximately $14,500 in fines, and Coca’s building – called “Building 2” in the complaint – had approximately $8.73 million in outstanding fines and penalties.
Coca paid a West New York Bureau of Fire Prevention official – who is cooperating with the government – cash bribes to reduce or eliminate the outstanding fines, paying $2,000 to eliminate the $14,500 debt on Building one. For Building 2, Coca paid a $5,000 cash bribe to the official, making the amount due to the West New York Bureau of Fire Prevention only the initial fine amount of $5,000.
The charge carries maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the ongoing investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-181Defense counsel: Zak Aljaludi, Union City, N.J.
Coca, Victor Complaint
Houston Man Pleads Guilty to Conspiring to Smuggle and to Traffic in Counterfeit Viagra TabletsRead the Press Release
HOUSTON - A Houston man pleaded guilty today to conspiring to smuggle and to traffic in counterfeit and misbranded pharmaceuticals, including Viagra tablets, from China, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division.
Nasif Baqla, 26, of Houston, pleaded guilty before U.S. District Judge Nancy F. Atlas to one count of conspiracy to traffic in counterfeit goods, to introduce misbranded prescription drugs into interstate commerce and to import such goods contrary to U.S. law.
Baqla was indicted on Aug. 22, 2012, as were two other individuals – Jamal Khattab, 49, of Katy, and Fayez Al-Jabri, 45, of Chicago – in a separate, but related case. Khattab and Al-Jabri each pleaded guilty on Dec. 3, 2013, and March 21, 2014, respectively, to the same conspiracy charge as Baqla, as well as trafficking in counterfeit goods and introducing counterfeit drugs into interstate commerce in violation of the Food, Drug and Cosmetic Act.
According to court documents, in July 2010, a package of counterfeit Viagra tablets was shipped from China to Houston, intended for Baqla and Khattab. The package was intercepted by Customs and Border Protection officers. Baqla claimed the pills were his and that he received them on behalf of a friend. Although the tablets were marked with trademarks substantially indistinguishable from the genuine marking on a legitimate Viagra pill, the drugs in the package were counterfeit and misbranded.
This matter was investigated by Homeland Security Investigations, the Food and Drug Administration - Office of Criminal Investigations, Diplomatic Security Service and police departments in Houston and Chicago. The case is being prosecuted by Assistant U.S. Attorney Kebharu Smith and Assistant Deputy Chief for Litigation John Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section.
Georgia Man Admits Cashing Fraudulently Obtained IRS Refund ChecksRead the Press Release
PITTSBURGH - A resident of the state of Georgia pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Edward Claude Hammitt, 67, of Summerville, Ga., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Hammitt agreed to accept and negotiate for cash fraudulently obtained IRS refund checks for tax years 2010 and 2011 from conspirators, which were obtained from a larger stolen identity refund fraud scheme.
Judge Fischer scheduled sentencing for Sept. 29, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Hammitt.
Gentleman’s Club Owner Indicted on Tax Evasion ChargesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Fred Bedran (61, Jacksonville) with tax evasion. If convicted on all counts, Bedran faces a maximum penalty of three years in federal prison and a $100,000 fine.
According to the indictment, Fred Bedran is the owner and operator of J.R. Cocktails, Inc., a Gentleman’s club in Jacksonville, Florida. From 2007 through 2010, Bedran, underreported his personal income and the gross receipts/sales being generated from his business, to avoid paying the full amount of his personal and corporate income taxes.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Malisa Chokshi.
Gates Man Pleads Guilty to Child PornographyRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Gino A. Sava, 53, of Gates, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to possession of child pornography. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant came to the attention of law enforcement in April 2013, following a referral from the Enfield, Connecticut Police Department. According to the referral, an individual in Connecticut was found to be trading and discussing images of child pornography with another individual in the Western District of New York via Yahoo! Instant Messenger. As a result of the investigation, members of the FBI’s Cyber Task Force conducted a search warrant at the defendant’s residence and seized numerous items of digital media, including computers and CDs. The images included prepubescent minors and minors being subjected to violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sentencing is scheduled for September 4, 2014 at 10:00 a.m. before Judge Larimer.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation Cyber Task Force, comprised of FBI Special Agents, as well as members of the Monroe County Sheriff’s Department, under the direction of Patrick O’Flynn and the Rochester Police Department, under the direction of Chief Michael Ciminelli.Four Arlington, Texas, Residents, Including A Social Security Administration (SSA) Employee, Arrested on Federal Charges Including Conspiracy to Defraud the SSARead the Press Release
DALLAS — Four Arlington, Texas, residents have been charged in a federal indictment, returned by a grand jury in Dallas earlier this month and unsealed yesterday, with conspiracy to defraud the United States, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lead defendant Carwin Shaw, 33, along with co-defendants Amanda Johnson, 35, and April Harvey, 36, were arrested on May 8, 2014, by special agents with the Social Security Administration – Office of Inspector General (SSA-OIG) and appeared before a U.S. Magistrate Judge. Each defendant pleaded not guilty and was released on bond. Deputy U.S. Marshals arrested the fourth defendant named in the indictment, Lanusha Lemmons, 25, on Friday. She made her initial appearance in federal court yesterday afternoon and pleaded not guilty. She was released on bond.
Specifically, each defendant is charged with one count of conspiracy to defraud the United States and one count of theft of government funds. A trial date of July 28, 2014, before Chief U.S. District Judge Sidney A. Fitzwater, has been set.
The indictment alleges that Shaw, a Service Representative employed by SSA in the Mid-Cities Field Office in Grand Prairie, Texas, accessed the SSA’s system, cut additional checks to the co-conspirators by alleging their initial check had been lost or stolen, split the second check with the co-conspirator and then accessed the system and waived the overpayment so that it would not be recovered from any future benefits. Each co-conspirator was the representative payee for one minor Social Security beneficiary. Other co-conspirators not named in the indictment are expected to plead guilty in the near future.
“The SSA-OIG will vigorously investigate and bring to justice those SSA employees and other individuals who intentionally defraud the SSA programs,” said Robert Feldt, Special Agent in Charge, SSA-OIG, Dallas Field Division.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine, and the theft of government funds count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered.
The case is being prosecuted by Special Assistant U.S. Attorney Nicole Dana.
(Download Factual Basis)
Fort Hall Man Sentenced for Assaulting A Federal OfficerRead the Press Release
POCATELLO – Cody Preacher, 20, of Fort Hall, Idaho, was sentenced today in United States District Court to five months in prison, followed by six months in a residential rehabilitation center and three years of supervised release, for assaulting a federal officer, U.S. Attorney Wendy J. Olson announced. He was indicted on October 22, 2013 and pleaded guilty to the charge on March 10, 2014.
On July 17, 2013, Preacher was arrested on the Fort Hall Indian Reservation for intoxication and for an active arrest warrant from the Fort Hall Tribal Court. He was being placed in a police car for transport to the Fort Hall Jail when he kicked the arresting officer, Jeremy Ball of the Fort Hall Police Department, in the groin. Officer Ball was treated at the hospital.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Fort Hall Man Sentenced for Abusive Sexual Contact of MinorRead the Press Release
POCATELLO — Austin Del Broncho-Timbana, 21, of Fort Hall, Idaho, was sentenced today in United States District Court to 15 months in prison, followed by five years of supervised release, for abusive sexual contact, U.S. Attorney Wendy J. Olson announced. Broncho-Timbana was charged by information on January 17, 2014, and pleaded guilty to the charge on February 27, 2014.
According to the plea agreement, Broncho-Timbana admitted that on January 20, 2013, he had abusive sexual contact with a 14-year-old girl at a residence on the Fort Hall Indian Reservation. According to the plea agreement, a relative contacted police after finding the girl partially unclothed in a back bedroom. Broncho-Timbana left the house through the bedroom window. He was later contacted by police at his home.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former White Sulphur Springs Mail Carrier Admits to Distributing Drugs on the JobRead the Press Release
Shady Spring man pleads guilty to separate drug offenses
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Jack Edwin Morris, 30, of White Sulphur Springs, West Virginia, and Douglas Edward Morris, 42, of Shady Spring, West Virginia, entered guilty pleas in federal court in Charleston to separate drug offenses. McCoy pleaded guilty to using a communication facility to facilitate a felony drug offense. He admitted that on February 20, 2014, he used a telephone in or near Lewisburg to have a conversation with a person to set up a drug transaction. Later that day, McCoy carried out the drug transaction at Ronceverte, distributing a suboxone strip to the person, who was cooperating with law enforcement authorities. McCoy was working a shift as a mail carrier with the United States Postal Service when he engaged in this conduct. He is no longer employed by the Postal Service. McCoy faces up to four years in prison and a $250,000 fine. The case was investigated by the United States Postal Service Office of Inspector General and the Greenbrier Valley Drug and Violent Crime Task Force.
Morris pleaded guilty to traveling in interstate commerce to facilitate a crime and also to possession of a controlled substance, admitting that on or about April 9 and April 10, 2013, he traveled from Shady Spring to Camden, New Jersey, where he obtained heroin and returned with it to his residence in Shady Spring. He admitted distributing some of the heroin and hiding some of it, intending to distribute it later. Morris also admitted that on May 15, 2013, he possessed a quantity of heroin in his residence with the intent to use it. Morris faces up to seven years in prison and a fine of between $2,500 and $500,000. The case was investigated by the West Virginia State Police Bureau of Criminal Investigations, the Raleigh County Sheriff’s Department Drug Unit, and the Federal Bureau of Investigation.
United States District Judge Irene Berger has scheduled sentencing hearings for both defendants for August 28, 2014.
Former Navy Nuclear Systems Administrator Pleads Guilty to Hacking into U.S. Navy and over 50 Other Computer SystemsRead the Press Release
WASHINGTON - Two leaders of a massive computer hacking conspiracy today pleaded guilty in federal court to participating in a plan to hack into the U.S. Navy, the National Geospatial-Intelligence Agency (NGA), and over 50 public and private computer systems to steal thousands of individuals’ personal information, obstruct justice, and damage protected computers, announced U.S. Attorney Danny C. Williams Sr.
Nicholas Paul Knight, 27, of Chantilly, Virginia, and Daniel Trenton Krueger, 20, of Dix, Illinois, pleaded guilty to a one-count information containing the allegations, and each face up to five years in prison, a fine of $250,000, and restitution to the victims. Sentencing is scheduled for August 27, 2014 before U.S. District Judge James H. Payne.
“Cybercriminals think the anonymity of the Internet can obscure their illegal activities and make it impossible to find and apprehend them. That is not true,” said U.S. Attorney Williams. “Criminals cannot hide in cyberspace. We will find you, charge you, and prosecute you to the fullest extent of the law.”
Records indicate that investigators with the Naval Criminal Investigative Service (NCIS), later joined by the Defense Criminal Investigative Service (DCIS), identified Knight and Krueger as the co-founders of a hacking group known as Team Digi7al (pronounced “Digital”), which was responsible for hacking into the U.S. Navy’s Smart Web Move (SWM) database. Prior to this breach, the SWM database stored sensitive personal records, including Social Security numbers, names, and dates of birth, for approximately 220,000 service members. As a result of the breach, over 700 deployed members of the military could not access logistical support for transfers for more than 10 weeks. The servers that stored these records were located in Tulsa, giving rise to the venue in the Northern District of Oklahoma.
The United States advised the court that the defendants, and at least three minors and a citizen of Canada, coordinated their hacking activities over email, IRC chat, and Facebook private messages, including one message in which Knight told Krueger “if anything happens . . . send me a message saying goodbye so we know one of us is caught.” After discovering that Knight regularly accessed the Team Digi7al Twitter account from within the Navy’s network, NCIS cyber investigators conducted a sting operation in a controlled environment aboard the USS Harry S. Truman, the aircraft carrier on which Knight worked as a systems administrator in the nuclear reactor department. During the sting, Knight hacked into a fake database, which he believed to be real while NCIS monitored his activity.
According to the United States, Knight and Krueger later confessed to leading the Team Digi7al conspiracy. Victims of the Team Digi7al conspiracy include the following organizations:
- U.S. Navy
- U.S. National Geospatial-Intelligence Agency
- U.S. Department of Homeland Security
- MobiTv
- Autotrader.com
- Harvard University
- Johns Hopkins University
- Kawasaki
- Library of Congress
- Los Alamos National Laboratory
- Louisville University
- MeTV Network
- Montgomery Police Department (Alabama)
- Peruvian Ambassador’s email (in Bolivia)
- San Jose State University
- Stanford University
- Toronto Police Service (Canada)
- Ultimate Car Page
- University of Alabama
- University of British Columbia (Canada)
- University of Nebraska-Lincoln
- World Health Organization
The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk with the cooperation and assistance of the DCIS Cyber Field Office and other federal, state, and local agencies. The case is being prosecuted by Assistant U.S. Attorney Ryan Souders.
Former Bank Manager Sentenced to Federal Prison for Conspiring to Steal Government FundsRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele yesterday sentenced Emmanuel Marty (32, Lehigh Acres) to two years in federal prison for his role in a conspiracy to commit theft of government funds. The Court also ordered Marty to pay $1,460,063.16 in restitution to the Internal Revenue Service. The sentence also included a money judgment in that same amount, $1,460,063.16, representing the proceeds of the offense.
Marty pleaded guilty on January 7, 2014.
According to court documents, Marty was employed as a bank manager at a bank in Fort Myers. While employed at that bank, he used his position to override internal controls and cash approximately $1,460,063.16 worth of United States Treasury Checks that were generated as refund checks, as a result of fraudulent tax returns filed with the Internal Revenue Service. The tax returns were filed utilizing stolen personal identification information.
This case was investigated by the Internal Revenue Service - Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney David G. Lazarus.
Former Auburn City Clerk Charged with EmbezzlementRead the Press Release
TOPEKA, KAN. – The former city clerk of Auburn, Kan., was charged in federal court here Tuesday with embezzling from the city, U.S. Attorney Barry Grissom said.
Alice Riley, 61, Topeka, Kan., is charged with one count of interstate transportation of stolen funds. A criminal information alleges the embezzlement began in 2009 while Riley was city clerk of Auburn, Kan., a town of 1,200 in Shawnee County. She issued duplicate payroll checks to herself and other unauthorized checks which she deposited into her personal accounts. She covered up the embezzlement by creating false entries in the city’s books and bank statements. She is alleged to have embezzled at least $186,000 from the city.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
Florida Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
MINNEAPOLIS— Last week in federal court in St. Paul, a 59-year old Leesburg, Florida man
pleaded guilty to defrauding investors and investment fund managers out of more than $2,500,000.
Gary Richard Vibbard, formerly of Wayzata, pleaded guilty to Mail Fraud. Vibbard, who was indicted
on August 21, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.In his plea agreement, Vibbard admitted that from 2008 to 2010, he engaged in a scheme to defraud
investors and investment fund managers through the sale of investments in R. Capital Advisors
(RCA), a Minnesota company created, owned, and managed by Vibbard. Vibbard admitted that, instead
of paying investors their profits as planned, RCA resorted to repaying earlier investors with
funds provided by later investors. In the plea agreement, Vibbard acknowledged that the scheme
defrauded more than 10 victims of funds totaling between $2,500,000 and $7,000,000.The U.S. Attorney’s Office and Vibbard have agreed to recommend a 63-month prison sentence to Judge
Magnuson. In addition, Vibbard will be ordered to pay restitution and could be ordered to pay a
fine. A sentencing hearing is yet to be scheduled.This case is the result of an investigation by the United States Postal Inspection Service and the
Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.Five in Meigs County Indicted for Crop Insurance FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, Ohio – A federal grand jury has indicted five people living in Meigs County, Ohio on charges of conspiracy, theft of public money, and money laundering for allegedly defrauding the federal Non-Insured Crop Assistance Program (NAP).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service and Derrick Hurst, Acting Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General announced the indictment today.
Named in the indictment are
Christopher T. Wolfe, 43, Racine, Ohio
Michael L. Johnson, 62, Portland, Ohio
Terry J. McNickle, 51, Racine, Ohio
Mark D. Wolfe, 41, Racine, Ohio
Joey L. Jerrell, 43, Racine, OhioNAP provides financial assistance to producers of non-insurable crops when low yields, loss of inventory or prevented planting occur due to a natural disaster. Payments are limited to $100,000 per crop year per individual or entity. The indictment alleges that Christopher T. Wolfe recruited co-conspirators to enroll in NAP. The co-conspirators would allegedly apply for payments and turn them over to Christopher T. Wolfe after keeping a portion for themselves.
All five are charged with conspiracy, which is punishable by a term of imprisonment of up to five years, and theft of public monies, which is punishable by up to ten years in prison. The indictment also charges conspiracy to commit money laundering and money laundering, crimes punishable by up to ten years in prison. Not all defendants are charged in each count of money laundering or money laundering conspiracy. The indictment seeks forfeiture of $1,563,337.30 which allegedly represents the proceeds traceable to the commission of the crimes.
The defendants will receive summonses to appear in federal court in Columbus at a time and date to be set by the court.
U.S. Attorney Stewart commended the cooperative investigation of this case by Secret Service agents and the USDA-OIG, and Assistant U.S. Attorney David J. Bosley, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #Enervest Computer Attack Draws Four-year Federal SentenceRead the Press Release
Former Charleston network engineer intentionally mounted devastating attack on employer’s computer system
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a former network engineer at Charleston-based EnerVest Operating, LLC (“EnerVest”), was sentenced to four years in federal prison for intentionally causing severe damage to his employer’s computer system. Ricky Joe Mitchell, 35, of Charleston, West Virginia, admitted that in June 2012, shortly after he learned he was going to be fired, he remotely accessed EnerVest’s computer system and reset the company’s network servers to factory settings, essentially eliminating access to all of the company’s data and applications for its eastern United States operations. Before his access to EnerVest’s offices could be terminated, Mitchell entered the offices after business hours, disconnected critical pieces of computer-network equipment, and disabled the equipment’s cooling system. As a result of Mitchell’s destructive acts, EnerVest was unable to fully communicate or conduct business operations for approximately 30 days. The company spent hundreds of thousands of dollars attempting to recover historical data from its network servers, and some of its data were lost forever.
“Imagine having your company’s computer network knocked out for a month,” said U.S. Attorney Goodwin. “In this day and age, that kind of attack is devastating. And this defendant didn’t just hurt EnerVest. He hurt his former co-workers, he hurt EnerVest’s customers, and, ultimately, he hurt consumers. The only good news here is that he didn’t get away with it.”
EnerVest manages oil and gas exploration and production operations for its parent company, EnerVest Ltd.—a major national oil and gas holding company—and for various affiliates of EnerVest Ltd.
In addition to his four-year prison sentence, Mitchell was ordered to pay $428,000 in restitution to EnerVest, plus a $100,000 fine. United States District Judge John T. Copenhaver, Jr., imposed today’s sentence.
The United States Secret Service conducted the investigation. United States Attorney Goodwin and Assistant United States Attorney Thomas C. Ryan handled the prosecution.
The case was prosecuted under U.S. Attorney Goodwin’s Business Protection Initiative, which fights fraud and other crimes against West Virginia businesses.
El Paso Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Carlos Jesus Carrasco, 24, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Carlos Carrasco and his co-defendant and cousin, Bernabe Carrasco, 34, also of El Paso, were arrested on Dec. 20, 2013, and charged by criminal complaint with conspiracy and possession of methamphetamine with intent to distribute. The two men subsequently were indicted on the same two charges. According to the indictment, Carlos Carrasco and Bernabe Carrasco conspired to distribute methamphetamine on Dec. 19, 2013, and possessed methamphetamine with intent to distribute on Dec. 20, 2013. The indictment alleges that the two men committed these offenses in Otero County, N.M.
During today’s proceedings, Carlos Carrasco pled guilty to the indictment. In his plea agreement, Carlos Carrasco admitted possessing 2.07 kilograms of methamphetamine on Dec. 20, 2013, which he intended to distribute. Carlos Carrasco further admitted boarding a bus in El Paso with two packages containing methamphetamine strapped to his body which he intended to deliver to Amarillo, Texas, in exchange for $1200.
According to court filings, Carlos Carrasco and Bernabe Carrasco, who also allegedly had a package of methamphetamine strapped to his body, were apprehended by U.S. Border Patrol agents at the Border Patrol traffic checkpoint on U.S. Highway 54 near Alamogordo, N.M., during a routine immigration check of passengers.
Carlos Carrasco has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Carrasco faces a sentence of not less than ten years and not more than life in prison.
Bernabe Carrasco has entered a not guilty plea to the indictment and remains in federal custody pending trial. If convicted, he also faces a sentence of not less than ten years and not more than life in prison.
This case was investigated by the Las Cruces office of the DEA and the U.S. Customs and Border Protection, with assistance from the Doña Ana County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.Eight Arrested in Funnel Account Conspiracy Related to Marijuana TraffickingRead the Press Release
CORPUS CHRISTI, Texas - Five men and three women have been arrested today as a result of an the efforts of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Prototype,” announced United States Attorney Kenneth Magidson.
The four-count indictment was returned under seal April 23, 2014, and unsealed today upon the arrest of Francisco R. Canchola, 39, Antonio Medina Soto, 24, Efren Amescua, 39, Brenda Amescua, 19, Luz Medina, 36, Carlos Flores, 26, Maria D. Amescua, 43, all of Mission, and Prudencio Villalobos, 45, of Jackson, Ga.
The defendants have or will make their initial appearances before U.S. magistrate judges in Atlanta, McAllen and Houston, at which time the U.S. expects to seek the continued detention of all defendants without bond pending further criminal proceedings.
All are charged with conspiracy to launder monetary instruments and two counts of conspiracy to structure transactions to avoid currency reporting requirements. If convicted of the money laundering conspiracy, they each face up to 20 years in prison as well as a maximum of 10 years in federal prison for each of the structuring counts.
Canchola and Soto are charged with conspiracy to possess with intent to distribute more than 1000 kilograms of marijuana. If convicted, they will face no less than 10 years and up to life in federal prison.
Also included in the indictment is a notice of the government’s intent to seek the forfeiture of eight bank accounts held at Wells Fargo Bank and Bank of America as well as a the intent to seek personal money judgments in the amount of $700,000 against all defendants.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Mission Police Department, Border Patrol, Customs and Border Protection and the U.S. Marshals Service. Assistant U.S. Attorney Julie K. Hampton is prosecuting.
Defendants are presumed innocent unless and until convicted through due process of law.Eagle Butte Man Charged with Assault with Intent to Commit Murder and Assault by StrangulationRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with Intent to Commit Murder and Assault by Strangulation.
Harold Picotte, III, age 40, was indicted on May 13, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 20, 2014, Picotte unlawfully assaulted an adult female victim with the intent to commit murder by strangulation and suffocation.
The charge is merely an accusation and Picotte is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Cheyenne River Agency. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Picotte was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Kola Eagle Hunter, age 29, was indicted on May 13, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 20, 2013, Eagle Hunter unlawfully assaulted an adult male victim with a club or bat, with intent to do bodily harm to the victim.
The charge is merely an accusation and Eagle Hunter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Cheyenne River Agency. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Eagle Hunter was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dinesh D’Souza Pleads Guilty in Manhattan Federal Court to Campaign Finance FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the guilty plea of DINESH D’SOUZA to violating the federal election campaign law by making illegal contributions to a United States Senate campaign in the names of others. D’SOUZA, whose trial was scheduled to start today, pled guilty this morning in Manhattan federal court before U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Preet Bharara stated: “Following the Court's ruling denying Dinesh D'Souza's baseless claim of selective prosecution, D'Souza now has admitted, through his guilty plea, what we have asserted all along – that he knowingly and intentionally violated federal election laws. As our Office's record reflects, we will investigate and prosecute violations of federal law, particularly those that undermine the integrity of the democratic electoral process, without regard to the defendant's political persuasion or party affiliation. That is what we did in this case and what we will continue to do.”
According to the Indictment, prior court filings, and statements made in court:
The Federal Election Campaign Act (the “Election Act”) is designed to limit financial influence in the election of candidates for federal office, including the Office of United States Senator, and provides for the public disclosure of the financing of federal election campaigns. In particular, the Election Act limits the amount and source of money that may be contributed to a federal candidate or that candidate’s authorized campaign committee. The Election Act specifically prohibits any person from making any contribution in the name of another, including reimbursing a third person, before or after that third person’s contribution, as inducement to make that contribution.
In 2012, the Election Act limited campaign contributions to $5,000 from any individual to any one candidate. In March 2012, D’SOUZA contributed $10,000 to the Senate campaign of Wendy Long on behalf of himself and his wife, agreeing in writing to attribute that contribution as $5,000 from his wife and $5,000 from him. In August 2012, D’SOUZA directed other individuals with whom he was associated, namely his assistant and a woman with whom he was romantically involved (the “Straw Donors”), to make contributions to Wendy Long’s campaign for the United States Senate (the “Long Campaign”) on behalf of themselves and their spouses that totaled $20,000 with the promise that he would reimburse them for the contributions. Later that same day or the next day, D’SOUZA, as promised, reimbursed the Straw Donors $10,000 each in cash for the contributions. When confronted by Ms. Long, D’SOUZA initially misled the candidate before admitting what he had done.
During the plea proceeding today, D’SOUZA admitted before the Court that he caused two close associates to contribute $10,000 each to the Long Campaign with the understanding that he would reimburse them for their contributions and that he did reimburse them. D’SOUZA also admitted that he knew that what he was doing was wrong and something the law forbids. The Court then accepted the guilty plea.
Last week, Judge Berman denied a pretrial motion by D’SOUZA to dismiss the indictment for selective prosecution, ruling that there was “no evidence” to support D’SOUZA’s allegation.
D’SOUZA, 53, of San Diego, California, faces a maximum sentence of two years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by the Court. He is scheduled to be sentenced by Judge Berman on September 23, 2014, at 11:00 a.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being prosecuted by the Office's Public Corruption Unit. Assistant United States Attorneys Carrie H. Cohen and Paul M. Krieger are in charge of the prosecution.
Dallas Man Faces up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
DALLAS — Donald Record, 52, of Dallas, appeared in federal court today and pleaded guilty to an Information charging one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, law enforcement received information from the Homeland Security Investigations (HSI) Cyber Center identifying an offender in the Dallas area. The investigation led law enforcement to secure and execute a search warrant at Record’s residence on March 6, 2014. Record admitted that he used his laptop computer to trade images of child pornography on the Internet, and that he looked at child pornography when he was at his home in Dallas and at work at SMU. He admitted his age preference was 8 – 10 year olds. He further admitted that he had approximately 100 images and one video of child pornography in his email account that he had received from others.
Record faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. He will remain on bond pending sentencing, which is set for September 3, 2014, before U.S. District Judge Ed Kinkeade.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) HSI conducted the investigation. Assistant U.S. Attorney Camille Sparks is prosecuting.
D'Hanis Man Charged with Manufacturing Pipe BombsRead the Press Release
Earlier today, federal agents arrested 20-year-old Michael Keich, of D’Hanis, TX, for manufacturing an unregistered weapon and manufacture of an explosive without a license announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
While executing a search warrant at the defendant’s residence this morning, FBI and ATF special agents recovered a pipe bomb as well as materials used in the production of explosive devices. According to the criminal complaint filed in this case, Keich admitted that he manufactured pipe bombs despite knowing that such activity was illegal.
Upon conviction, Keich faces up to ten years in federal prison. He remains in federal custody pending a detention hearing later this week.
This investigation is being conducted by agents with the Federal Bureau of Investigation with assistance from the Bureau of Alcohol, Tobacco Firearms and Explosives, Uvalde County Sheriff’s Office, and the Medina County Sheriff’s Office. Bombs squads from the FBI and San Antonio Police Department rendered the suspected device safe outside the defendant’s residence. Special Assistant United States Attorney Carah Helwig is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Commercial Armed Robbers Arrested in Multi-Agency InvestigationRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Shamorcus Brandan Nesbitt (27, Tampa) and England Alexander Wilson (32, Tampa) have been charged in a criminal complaint with conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and brandishing a firearm during and in relation to and in furtherance of a crime of violence. If convicted, each faces a maximum sentence of 20 years’ imprisonment for each robbery, and mandatory minimum consecutive sentences of 7 years, up to life imprisonment for each related firearms offenses.
After being arrested on May 20, 2014, Nesbitt and Wilson made their initial appearances in federal court, before United States Magistrate Judge Thomas B. McCoun, III in Tampa. They were detained pending further proceedings.
According to the criminal complaint, multiple law enforcement agencies have been investigating a series of 19 commercial armed robberies that have occurred in the Tampa Bay area between December 2013 and May 20, 2014. The robberies were unique in that they occurred around closing time and that the robbers would smash the stores’ glass with a brick or rock to gain access to the store. Once inside the store, the robbers would hold the employees at gunpoint, while demanding money. Based on the patterns of the armed robberies, investigators identified Nesbitt and Wilson as the potential perpetrators and identified the vehicles that they were believed to be using to commit the robberies. At approximately 12:40 a.m. on May 20, 2014, Nesbitt and Wilson used one of those vehicles to commit an armed robbery of a pizza chain on West Waters Avenue in Tampa. Further investigation led law enforcement to Nesbitt’s residence, in Tampa, where both individuals were ultimately taken into custody.
A criminal complaint is merely an informal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is a joint investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco Firearms & Explosives, the Citrus County Sheriff’s Office, Hernando County Sheriff’s Office, Pasco County Sheriff’s Office, Hillsborough County Sheriff’s Office, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Josephine W. Thomas.
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Cherokee County Man Guilty in Armed Robbery Crime SpreeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 22-year-old Jacksonville, Texas man has pleaded guilty in connection with a violent crime spree targeting area businesses in the Eastern District of Texas announced U.S. Attorney John M. Bales today.
Jonathan Roshard Brown pleaded guilty to interfering with interstate commerce by robbery (Hobbs Act conspiracy) and possessing a firearm during a crime of violence today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, Brown and three co-defendants conspired to commit robbery, which unlawfully obstructed, delayed and affected commerce in violation of federal law. Specifically, they committed four armed robberies in Jacksonville during a crime spree which began on Oct. 2, 2011 when Brown and two others stole $9,465 from the Wal-Mart Supercenter in Jacksonville. On Nov. 2, 1012, Brown and two others robbed the Razorback Grocery on Hwy 69 in Jacksonville. Brown brandished a handgun and demanded money from the owner. Razorback Grocery suffered a loss of approximately $16,000 in cash and $6,900 in Texas lottery tickets. On Nov. 16, 2012, Brown and two others again robbed the owner of the Razorback Grocery while he was waiting in the commercial drive-thru line at the Austin Bank on West Commerce Street in Jacksonville. During the robbery Brown fired a handgun, striking the victim. The bullet passed through the victim’s hand, throat and shoulder. The victim survived after being airlifted to a Tyler hospital. The defendants obtained an undetermined amount of cash from the victim’s vehicle. The armed robbery resulted in the closure of Razorback Grocery and the temporary closure of Austin Bank. On Nov. 23, 2012, Brown and another person attempted to rob the owner of the Fast Fuel on Hwy 69 in Jacksonville. The owner was able to strike Brown and flee.
Brown faces up to 20 years in federal prison for the Hobbs Act violation and a minimum of 10 years in federal prison for the firearms violation. A sentencing date has not been set.
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This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the FBI East Texas Gang Initiative and the Jacksonville Police Department with assistance from the Cherokee County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Richard Moore.Cheektowaga Man Sentenced for Bank RobberyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jeffrey Turner, 24, of Cheektowaga, N.Y., who was convicted of bank robbery, was sentenced to 33 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $4,639 in restitution.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on June 13, 2013, Turner entered M&T Bank, located at 788 Tonawanda Street in Buffalo. The defendant passed the teller a demand note threatening the use of a weapon. The teller gave Turner a specific amount of money.
On July 1, 2013, the defendant entered the M&T Bank, located at 1580 Hertel Avenue in Buffalo. Turner passed the teller a demand note threatening the use of a weapon. The teller gave him a specific amount of money.
The plea is the culmination of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force.Charleston Man Indicted for Impersonating A Federal Law Enforcement OfficerRead the Press Release
CHARLESTON, W. Va. – A federal grand jury today charged John E. Swain II, of Charleston, with falsely assuming and pretending to be a federal law enforcement officer. According to the grand jury’s indictment, Swain impersonated a United States Deputy Marshal on April 14, 2014, in Charleston.
If convicted, Swain faces up to three years’ incarceration and a $250,000 fine.
The United States Marshals Service and the Kanawha County Sheriff’s Department conducted theinvestigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
Note: An indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Chapmanville Meth Dealer Sentenced to Federal PrisonRead the Press Release
Charleston, W.Va. – Chad Randall Davis, 20, of Chapmanville, Logan County, West Virginia, was sentenced today to six months in federal prison for distributing methamphetamine, United States Attorney Booth Goodwin announced. Davis previously pleaded guilty in January 2014, admitting that he sold methamphetamine to what proved to be a confidential informant working with the U.S. 119 Drug Task Force. The drug sale occurred at Davis’ Chapmanville residence on November 16, 2012. Davis was arrested on January 21, 2013, and provided a statement to law enforcement admitting he sold approximately $3000 worth of methamphetamine during the three- to four-month period prior to his arrest.
United States District Judge John T. Copenhaver, Jr., imposed today’s sentence, which includes a three-year term of supervised release following Davis’ prison term.
Cape Canaveral Man Sentenced to 25 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Travis Garrett Robinson (27, Cape Canaveral) to 25 years in prison for two counts of production of child pornography and one count of possession of child pornography. As part of his sentence, Robinson was also ordered to serve a life-term of supervision and register as a sex offender, following his release from prison.
Robinson pleaded guilty on February 26, 2014.
According to court documents, this investigation began when an Internet website reported to the National Center for Missing and Exploited Children (NCMEC) that a specific Internet Protocol (IP) address was engaged in downloading child pornography. Law enforcement determined the location of the IP address and interviewed Robinson. Robinson not only admitted to downloading and possessing child pornography, but also admitted to producing child pornography. While Robinson was a guest in a friend’s home, he exploited young boys. Robinson waited until the boys were sleeping, and on different occasions, exposed them and took several pictures with his cell phone and camera.
Robinson’s computer, external hard drive and cameras were seized and searched pursuant to a search warrant. The investigation revealed that Robinson, using a peer-to-peer software program (“Shareaza”), had downloaded and viewed child pornography for approximately ten years. The forensic examination of his cell phones showed that Robinson produced more than ten images of child pornography of minor victims. The forensic examination further revealed that his computer, external hard drive, and cell phones contained a total of 992 image files and 261 movie files of child pornography. Included in these additional images were images involving bondage and/or penetration of children who were under 12 years old.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement, Orlando Regional Operations Center. It is being prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Baltimore Crack Cocaine Dealer Exiled to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Karl McDonald, age 30, of Baltimore, today to 151 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute crack cocaine. Judge Quarles enhanced McDonald’s sentence upon finding that he is a career offender based on two previous drug convictions.
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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to McDonald's plea agreement, from at least 2010 through June 2013, McDonald conspired with others to obtain cocaine from suppliers in Arizona and Texas. Once the cocaine arrived in Baltimore, McDonald converted the powder cocaine to crack cocaine for street level distribution. McDonald operated a distribution shop in Baltimore where the crack cocaine was sold. During the spring of 2013, DEA agents intercepted phone calls of members of the drug trafficking organization, including McDonald. On June 6, 2013, law enforcement executed search warrants at locations used by the organization in the Baltimore metropolitan area. DEA seized approximately 250 grams of cocaine, as well as packaged crack cocaine, from the main stash house of the organization.
McDonald admits that he is responsible for the distribution of between 28 and 112 grams of crack cocaine.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
A Federal Jury Convicts A Boston Man of Sex Trafficking of A MinorRead the Press Release
BOSTON – A federal jury today convicted a Boston area man of sex trafficking a 16-year-old girl.
Following a five-day trial, Michael Gemma, 30, of Dorchester was convicted of using force, fraud and coercion to cause a minor to engage in prostitution and transporting a minor across state lines for the purpose of prostitution. He was indicted in May 2012. Sentencing is scheduled for September 9, 2014.
The investigation into the defendant’s sex trafficking activities began in 2011 when a Trooper with the Massachusetts State Police stopped Gemma for speeding. During the stop, the Trooper recovered the 16-year-old female victim who reported that the defendant had driven her to New York and New Jersey for purposes of prostitution.During the trial, the jury heard testimony from the trafficking victim who testified about how the defendant and another pimp took suggestive pictures of her which they used in advertisements that offered sex with her for a fee. Gemma posted those advertisements on various Internet sites including Backpage.com. Gemma and another pimp drove the minor victim and other young women to motels in Massachusetts, New York and New Jersey, where they were prostituted. The victim testified how Gemma and the other pimps would control the prostitutes by threatening them and, at times, beating them.
Gemma faces a minimum sentence of 15 years in prison and a maximum of a lifetime, five years of supervised release, a $250,000 fine, and restitution.
United States Attorney Carmen M. Ortiz, Special Agent in Charge Vincent B. Lisi of the Federal Bureau of Investigation’s Boston Field Division and Colonel Timothy Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Leah Foley and Miranda Hooker who are members of Ortiz’s Civil Rights Enforcement Team.
24 Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 24 defendants charged with conspiracy to possess with intent to distribute controlled substances. The Drug Enforcement Administration (DEA) the Puerto Rico Police Department (PRPD) are the agencies in charge of the investigation.
The indictment returned by a federal grand jury on May 15, 2014, and unsealed in federal court today, charges 24 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine. Beginning on a date unknown, but not later than the year 2009, the object of the conspiracy was to possess and distribute kilogram quantities of controlled substances, mainly cocaine, in Puerto Rico for further distribution in the continental United States, all for significant financial gain and profit.
As part of the manner and means by which the defendants and their associates accomplished the objects of the conspiracy, they recruited individuals to use them as “mules” or couriers in order to transport kilograms of cocaine from the Luis Muñoz Marín International Airport (“LMMIA”), located in San Juan, Puerto Rico, to the continental United States. The defendants used residences located within the area of Orlando and Kissimmee, Florida, in order to stash large amounts of U.S. Currency and drugs.The co-defendants and their co-conspirators concealed kilogram quantities of cocaine using the children’s toy “Lite Brite” and DVD players of different brands. It was further part of the manner and means of the conspiracy that the co-defendants and their co-conspirators would travel, or cause others to travel in commercial airline flights, from Puerto Rico to the continental United States, carrying kilogram quantities of cocaine hidden in suitcases; and their co-conspirators would receive kilogram quantities of cocaine in the continental United States for further distribution.
The co-defendants and their co-conspirators often used the recruited couriers and the same containers to transport the profits generated from the drug sales back to Puerto Rico. They invested part of the profits of the sales in the purchase of more narcotics, to further their drug trafficking activities. The leaders of the conspiracy used part of the proceeds of the illegal activity to purchase legitimate assets and services, including but not limited to, real estate properties, nightclubs, motor vehicles, vessels, clothing, trips, hotel accommodations, private parties and plastic surgery.
The defendants are: Heriberto Burgos-Martínez, aka “Spowell;” Saul Guzmàn-Font, aka “Saul Peluca;” Michael Aponte-Pinto, aka “Lito;” Hector Tapia-Rodríguez, aka “Hugo;” Roberto Ramírez-Rodríguez, aka “Rockero;” Xavier Rodríguez-Casado, aka “Bebo Gran;” Roberto Baez-Figueroa, aka “Potro;” Lonnie Tapia-Rodríguez, aka “Cascote;” José W. Telleria-Arriaga, aka “Gordo;” Max J. Acevedo-Andino, aka “Max Joel;” Victor Rivera-Mercado, aka “Poke;” Mecsac Ramírez-Rodríguez, aka “Messak;” Ángel García-Trinidad, aka “Angelito;” Paulette Concepción-Díaz, aka “Pao;” Yamira Díaz-Algarín; Landy Y. Castro-Flores; Luis F. Villegas-Nieves, aka “Blon Blon;” Neftali Galindo-Isaac, aka “Fifty;” Allan Rodríguez-Crispin, aka “Love;” Jesús E. Miranda-Lugo, aka “Shaka;” José Oliveras-Ruiz, aka “Cascara;” Hector M. Robles-Alvira; Lefty Méndez-Valentin, aka “Zurdo;” and Edwin M. Rosario-Rodríguez, aka “Toto.”
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Today we have stopped a criminal organization from funneling significant quantities of cocaine into the continental United States using commercial airlines from Puerto Rico to the state of Florida. This operation will have significant effects, not only in Puerto Rico, but in the streets and communities in Florida which were used by this organization to further their drug distribution activities.”
“The continuous interdiction efforts of the DEA at the Luis Muñoz Marin International Airport led to the investigation the Heriberto BURGOS-Martinez Drug Trafficking Organization and subsequent arrest of 24 members of his drug trafficking organization,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA Caribbean Division. “Also our HIDTA partners were essential in the success of this investigation. We will continue using the HIDTA resources to target other criminal organizations engaged in drug transportation activities.”
Assistant U.S. Attorneys Alberto R. López-Rocafort and Teresa Zapata-Valladares are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation. 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.