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Wednesday 26 March 2014
Ferndale Doctor Pleads Guilty to Prescription Drug TraffickingRead the Press Release
Dr. Joel Milliner, M.D., age 45, of Ferndale pleaded guilty yesterday to distribution of controlled substances including prescription pain killers, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division, and Lamont Pugh, III, Special Agent in Charge, Department of Health and Human Services, Office of Inspector General.
Milliner entered his guilty plea during a hearing today before U.S. District Judge Gerald E. Rosen in Detroit.
Milliner pleaded guilty to distribution of controlled substances outside of the course of legitimate medicine. Over the course of several months, Milliner wrote prescriptions for Opana and Oxycondone that he knew would be diverted for illicit purposes
U.S. Attorney stated, “Diversion of prescription drugs causes significant harm. The number of fatal overdoses from prescription drugs in the United States last year was more than six times the number of fatal overdoses from all other illegal drugs combined.”Milliner is facing a maximum penalty of up to 20 years’ imprisonment. A sentencing hearing is scheduled for July 9, 2014.
U.S. Attorney McQuade congratulated the hard work of the FBI and HHS for their efforts in pursuing this case. The case is being prosecuted by Assistant U.S. Attorney Philip A. Ross.Federal Grand Jury Indicts Man Who Flew into Birmingham Airport and Attempted to Fly Out Under Assumed NamesRead the Press Release
BIRMINGHAM -- A man who flew into the Birmingham-Shuttlesworth International Airport under an assumed name on March 16 now faces a federal grand jury indictment for violating airport security and presenting false identification documents, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The three-count indictment filed in U.S. District Court charges ROBERT ANTHONY RICKS, 30, with the felonies of entering an airport area in violation of security requirements, and with using someone else's identification to illegally enter an aircraft or secure airport area. The indictment also charges Ricks with entering a secure airport area by false pretenses, a misdemeanor.
Ricks was arrested at the airport and initially charged in a federal complaint under the name Robert Quran Hick. His indictment lists that name, along with four others, as aliases. The other aliases included are Robert Harris, Quran Kendrick, Sage Malik and Wise. The investigation is ongoing and Ricks' last place of residence has not been confirmed.
Count 1 of the indictment charges that Ricks got off Delta Flight 1535 in Birmingham and entered the "secure and sterile area of the terminal" under the identity of "U.W." Thereafter, he assumed the identity of another person, identified in the indictment by the initials, M.M. A March 17 FBI affidavit supporting Ricks' arrest complaint identifies Flight 1535 as flying to Birmingham from Atlanta.
Count 2 of the indictment, the misdemeanor, charges that Ricks attempted to go through security screening at the Birmingham airport using a boarding pass in the name of M.M.
Count 3 charges that Ricks illegally possessed a document identifying him as M.M. and intended to use the document to enter an aircraft or a secure airport area.
According to the arrest affidavit, Ricks obtained United Airlines boarding passes from Birmingham to Chicago, and from Chicago to Colorado Springs by telling a United representative in Birmingham that he was M.M. Ricks made the claim at a United boarding gate after hearing a public address system message for M.M.
Hicks was arrested after he left the secure area of the Birmingham airport, twice tried to re-enter the area by going up the down escalator, and then tried to go through a Transportation Security Agency checkpoint using one of the United boarding passes, according to the arrest affidavit.
The affidavit also reports that Ricks provided a false name and birth date to the FBI agent who interviewed him when he was arrested.
The maximum penalty for entering an airport area in violation of security requirements is 10 years in prison and a $250,000 fine; and the maximum penalty for possessing false identification documents with the intent to use them illegally is five years in prison and a $250,000 fine. The misdemeanor charge of entering a secure airport area by false pretenses carries a maximum sentence of six months in prison and a $5,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Elizabeth Holt is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on March 26, 2014:
Beau A. Eldridge, 28, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about February 22, 2014. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Effingham, Illinois, Doctor Indicted on Charges of Health Care Fraud and Illegal Dispensation of Controlled SubstancesRead the Press Release
Follow @SDILNewsA Federal Grand Jury sitting in East St. Louis, Illinois, returned a 15 count Indictment against an Effingham County doctor, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The indictment was opened today upon the arrest and arraignment of the doctor in Benton, Illinois.
Naeem Mahmood Kohli, 59, of Effingham, Illinois, operated the Kohli Neurology and Sleep Center, located on North Maple in Effingham, Illinois. The indictment alleges that, for some patients, Kohli did not operate a legitimate medical practice, but instead was engaged in a scheme to illegally distribute controlled substances by running what was in essence a prescription service for drug addicts, commonly known as a “Pill Mill.” The indictment also alleges that Kohli defrauded Health Care Benefit Programs, namely, Medicare, Medicaid, and Blue Cross Blue Shield of Illinois, by billing for services not provided.
In the Indictment, Kohli is charged with the following offenses: (1) health care fraud in Counts 1 through 3, which carry penalties of a maximum of 10 years in prison, a maximum fine of $250,000, a maximum of three years supervised release; (2) illegal distribution of a Schedule II controlled substances (Oxycodone, Hydromorphone, and Methadone) in Counts 4 through 13, which carry penalties of a maximum of 20 years in prison, a maximum fine of $1,000,000, no less than three years supervised release; and (3) money laundering in Counts 14 and 15, which carry penalties of a maximum of ten years in prison, a maximum fine of $250,000, and one year of supervised release. A $100 special assessment must be imposed on each count.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigation; the Federal Bureau of Investigation, and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being handled by Assistant United States Attorneys Michael J. Quinley and Ranley R. Killian.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1-800-447-8477.
Drug Trafficker in Guam Sentenced to 10 YearsRead the Press Release
(HAGATNA, GU) - ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on March 24, 2014, in the U.S. District Court of Guam, Chief Judge Frances M. Tydingco-Gatewood sentenced RODNEY D. TAITANO, age 45, to 10 years in prison followed by five years of supervised release based upon his conviction for conspiracy to distribute over 50 grams of methamphetamine. Chief Judge Tydingco-Gatewood also ordered TAITANO to perform 50 hours of community service.
The defendant was receiving methamphetamine from California. The drugs were inside air impact wrenches whose motors had been removed. On May 4, 2013 Guam Customs Officers intercepted a suspicious package at the Guam Customs Air Cargo Facility and discovered methamphetamine concealed inside of two air impact wrenches which belonged to the defendant.
U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, Alicia A.G. Limtiaco, stated, “Our community is not immune from the poison of methamphetamine. This case illustrates the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam.”The case was investigated by the Drug Enforcement Administration, Guam Customs & Quarantine Agency, Guam Police Department, Superior Court of Guam Probation Office, and United States Postal Inspectors. The United States was represented by Assistant U.S. Attorneys Karon V. Johnson and Clyde Lemons, Jr.
District Man Found Guilty of Assault with Intent to Kill and Other Charges in 2012 Shooting Outside RestaurantDefendant Sought Revenge After Fight, Shot Three MenRead the Press Release
WASHINGTON – Matthew Bullock, 30, of Washington, D.C., has been found guilty of a total of 24 charges stemming from the shooting of three men in December 2012 behind a restaurant in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
The verdicts, returned by a jury on March 19, 2014, followed a trial in the Superior Court of the District of Columbia. The jury found Bullock guilty of three counts of assault with intent to kill while armed, three counts of aggravated assault while armed, three counts of assault with a dangerous weapon, and 15 additional charges. The Honorable John McCabe scheduled sentencing for May 30, 2014.
According to the government’s evidence, shortly after midnight, early on Dec. 3, 2012, Bullock and one of the victims were involved in a fistfight inside the Indulj Lounge, a bar/restaurant in the 1200 block of U Street NW. After the fight was broken up, Bullock was ushered out of the front door and the victims were ushered out of the back door.
Bullock hurried to his car, which was parked in front of the restaurant. He then drove to the alley behind the restaurant to intercept the man with whom he had been fighting. Once he saw the man in the alley, Bullock unleashed at least six rounds from a semi-automatic weapon, striking his intended target in the shoulder. In the barrage, Bullock also struck the two men accompanying his main target. One of these other men was struck by two bullets in the groin and leg. The final victim was struck in the back as he ran away from Bullock, and left paralyzed. Bullock fled the scene and was apprehended on an arrest warrant in January 2013.
In announcing the verdict, U.S. Attorney Machen commended the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialists Leif Hickling and Aneela Bhatia; Victim/Witness Advocate Jennifer Clark; and Paralegal Specialists Anthony Griffith and Kalisha Johnson-Clark. Finally, he thanked former Assistant U.S. Attorneys Andrew Finkelman and Nicholas Cannon, who investigated and indicted the case, and Assistant U.S. Attorney Kevin Andrew Chambers, who prosecuted the case at trial.
14-071Distributor of Dietary Supplements Pleads Guilty in Manhattan Federal Court to Misbranding Weight-Loss PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Dragonetti, Special Agent in Charge of the New York Field Office of the United States Food and Drug Administration (“FDA”) Office of Criminal Investigations (“OCI”), announced that BALANCED HEALTH PRODUCTS (“BHP”), the United States distributor of “StarCaps” weight-loss pills, and its sole owner, NIKKI HASKELL, pled guilty today to distributing misbranded pills which failed to list Bumetanide, a prescription drug, as an ingredient. BHP and HASKELL pled guilty before United States Magistrate Court Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “For years, Nikki Haskell and Balanced Health Products distributed weight-loss pills throughout the United States that they sold as ‘all-natural’ when in fact the pills contained a prescription drug banned by the National Football League and other major sports organizations. Consumers are entitled to know, when they buy a product, what they are putting in their bodies. With today’s pleas, the defendants begin to face the consequences of their unlawful conduct.”
FDA-OCI Special Agent in Charge Mark Dragonetti said: “The FDA Office of Criminal Investigations is fully committed to investigating and supporting the prosecution of those who may endanger the public’s health and safety by manufacturing and selling unsafe products. We will continue to aggressively pursue manufacturers, distributors and other responsible persons who fail to protect consumers from harmful products and we commend the United States Attorney’s Office for their prosecution of this matter.”
According to the Information filed today, and statements made in Court:
The FDA is a federal agency responsible for enforcing the provisions of the Federal Food, Drug, and Cosmetic Act, Title 21, United States Code, Section 301, et seq. The FDA’s responsibilities include, among other things, ensuring the safety, efficacy, and accurate labeling of prescription and non-prescription drugs shipped, delivered, and received in interstate commerce.
From at least in or about November 2006 through December 2008, BHP was a Delaware corporation headquartered in New York, New York. BHP’s primary business was the distribution across the United States of a purportedly all-natural weight-loss pill known as Nikki Haskell’s StarCaps (“StarCaps”). At all times, HASKELL was the President and Chief Executive Officer of BHP and resided in New York, New York.
As alleged, according to its product label, StarCaps contained only all-natural ingredients including, for example, papaya extract. In truth and fact, however, while not reflected on its label, from at least approximately November 2006 through approximately December 2008, StarCaps also contained a prescription drug, Bumetanide, a diuretic drug used clinically to treat heart failure, acute renal failure, high blood pressure, and edema, and available in the United States only by prescription issued by a licensed physician.
In addition to being available only by prescription, Bumetanide was banned by certain professional sports organizations including the National Football League (“NFL”). Among other things, Bumetanide was banned by the NFL because it can be used to mask the presence in the human body of steroids and other banned doping agents.
HASKELL, 72, of New York, New York, pled guilty to one count of misbranding, a misdemeanor which carries a maximum term of one year in prison, a maximum term of supervised release of one year, and a maximum fine of $100,000. BHP pled guilty to one count of misbranding, a misdemeanor which carries a maximum fine of $200,000 or twice the gross pecuniary gain derived from the offense. Both defendants are scheduled to be sentenced before U.S. Magistrate Court Judge Netburn on June 30, 2014. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FDA.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Robin W. Morey is in charge of the prosecution.
U.S. v. Nikki Haskell and Balanced Health Products Information
Defendant Found Guilty of Possessing Heroin and MethamphetamineRead the Press Release
TULSA, Okla. — A Tulsa man with three prior felony convictions was found guilty in federal court Tuesday for possessing a firearm and ammunition, and possessing heroin and methamphetamine with intent to distribute, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Reco D. Manning, 31, of Tulsa, was found guilty of possessing a Smith and Wesson .38 caliber revolver and ammunition; and possessing approximately 22 grams of methamphetamine and 9.5 grams of heroin with the intent to distribute. Manning was previously convicted in Arkansas for Second Degree Battery, Possession of Powder Cocaine with Intent to Deliver, and Possession of Xanax with Intent to Deliver.
Manning was indicted on November 5, 2013. A formal sentencing date has been set for July 2, 2014.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department. Assistant United States Attorney Gary L. Davis II prosecuted the case on behalf of the United States.
Crownpoint Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Jimmie Edward Augustine, Sr., 69, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., Pueblo, pleaded guilty this morning to an abusive sexual contact charge under a plea agreement with the U.S. Attorney’s Office.
Augustine was arrested on Nov. 6, 2013, on a two-count indictment charging him with aggravated sexual abuse and abusive sexual contact with a child who had not attained the age of 12 years. According to the indictment, Augustine committed the offenses between May 2011 and Sept. 2011, in a location within the Navajo Indian Reservation.
Today, Augustine pleaded guilty to Count 2 of the indictment charging him with abusive sexual contact. Augustine admitted engaging in a sexual act with a child who was under 12 years of age by intentionally touching the child’s genitals and buttocks.
Under the terms of his plea agreement, Augustine will be sentenced to 24 months in prison to be followed by a term of supervised release to be determined by the court. Augustine will be required to register as a sex offender after he completes his prison sentence. The sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Gallup Police Department with assistance from the New Mexico Children, Youth and Families Department and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Chicago Tax Preparer Indicted for Causing More Than 150 Fraudulent Tax Returns Seeking over $1 Million in RefundsRead the Press Release
CHICAGO ― A Chicago tax return preparer was indicted on federal charges alleging that he was responsible for submitting more than 150 false federal individual income tax returns seeking over $1 million in refunds for individuals whom he knew were not entitled to them. The defendant, PHILLIP SMITH, allegedly was paid a portion of the tax refunds his clients received. The case is typical of federal tax prosecutions that occur throughout the year, but it serves as a reminder to taxpayers of the importance of voluntary compliance with their tax obligations as the April 15 filing deadline approaches.
Smith, 51, was charged with 11 counts of wire fraud and two counts of making a false claim to the Internal Revenue Service in an indictment returned yesterday by a federal grand jury. The indictment also seeks forfeiture of approximately $840,706 in fraudulently obtained refunds. Smith will be arraigned on a date to be determined in U.S, District Court.
“One of our top priorities is to maximize revenue by investigating abusive tax return preparers,” said James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “IRS Criminal Investigation investigates tax fraud year round, not just at tax time. Taxpayers who might be thinking about cheating with next month’s deadline looming should think twice or they risk literally paying the consequences. We are committed to assuring honest taxpayers that everyone pays their fair share.” Mr. Lee also cautioned that taxpayers should choose carefully when hiring a tax preparer.
According to the indictment, in exchange for fees, Smith fabricated false Forms W-2 that purported to be issued by fictitious companies, knowing that his clients would use them to support false tax returns that would be submitted to the IRS. The bogus W-2s stated false annual wage and tax withholding amounts designed to fraudulently generate significant Earned Income Credits and tax refunds from the IRS. Smith fraudulently obtained employer identification numbers for the fictitious companies from the IRS, which he included on the bogus W-2s.
Between January 2010 and April 2013, Smith allegedly prepared and caused to be submitted to the IRS more than 150 false tax returns seeking more than $1 million in refunds.
In some instances, Smith directed clients to provide the bogus W-2s to reputable tax preparation businesses knowing that the tax preparers would rely on the false information and submit false returns on behalf of his clients, the indictment alleges. In other instances, Smith prepared the false returns and submitted them electronically for his clients, it adds.
At times, Smith posed as the employer during telephone calls with IRS representatives to verify his clients’ purported employment, and he created false employment verification letters and paystubs for his clients to submit to the IRS when it sought additional records, the charges allege.
The indictment details 11 examples of false returns in which Smith caused taxpayers to seek and obtain fraudulent refunds ranging from $5,292 to $9,864.
Each count of wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine, and each count of making a false claim on the United States carries a maximum penalty of five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced the indictment with Mr. Lee. The government is being represented by Assistant U.S. Attorney Michelle M. Petersen.
The public is reminded that an indictment contains merely charges 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 guilt beyond a reasonable doubt.
Indictment
Charlotte Mayor Arrested on Federal Public Corruption ChargesRead the Press Release
CHARLOTTE, N.C. – Charlotte Mayor, Patrick DeAngelo Cannon, was arrested today by FBI agents for alleged violations of federal public corruption laws, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The federal criminal complaint filed in U.S. District Court, charges Cannon, 47, of Charlotte, with theft and bribery concerning programs receiving federal funds, honest services wire fraud and extortion under color of official right.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Tompkins in making today’s announcement.
According to allegations contained in the charging document and the affidavit filed in support of the criminal complaint, during the course of a separate criminal investigation, the FBI received reliable information that Cannon was potentially involved in illegal activities associated with his position as an elected official, and began an undercover investigation in or about August 2010. The complaint and affidavit allege that during the course of that investigation, Cannon allegedly solicited and accepted money bribes and things of value from undercover FBI agents, posing as commercial real estate developers and investors wishing to do business in Charlotte. As alleged in the filed documents, Cannon solicited and accepted such bribes and things of value in exchange for the use of his official position as Charlotte Mayor, Mayor Pro Tem and/or as a City Council Member.
The complaint and law enforcement affidavit allege that Cannon accepted the bribes from the undercover FBI agents on five separate occasions. On the last occasion, on February 21, 2014, Cannon allegedly accepted $20,000 in cash in the Mayor’s office. According to the complaint and the affidavit, between January 2013 and February 2014, Cannon allegedly accepted from the undercover agents over $48,000 in cash, airline tickets, a hotel room, and use of a luxury apartment in exchange for the use of his official position.
Cannon had his initial appearance today and has been released on bond, pending indictment. The charge of theft and bribery concerning programs receiving federal funds carries a statutory maximum sentence of 10 years in prison and a $250,000 fine; the charge of honest services wire fraud carries a statutory maximum sentence of not more than 20 years in prison and a $1,000,000 fine; and the charge of extortion under color of official right carries a statutory maximum sentence of not more than 20 years in prison and a $250,000 fine.
The charges contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorney Michael E. Savage of the U.S. Attorney’s Office for the Western District of North Carolina. The case is being investigated by the Federal Bureau of Investigation.
A copy of this press release and the filed complaint as well as case updates can be found on the website of the United States Attorney’s Office for the Western District of North Carolina at: Case Calendar.
cannon_complaint.pdf
Charleston Woman Pleads Guilty to Firearms ChargesRead the Press Release
Defendant had previously pled guilty to distribution of heroin
Charleston, W.Va. – Chandra Ross, 30, of Charleston, West Virginia, pled guilty today in federal court to possessing firearms in furtherance of a drug trafficking crime, and to possession of a firearm with an obliterated serial number. In August of 2013, a federal grand jury sitting in Charleston, returned a three-count indictment against Ross charging her with possession with intent to distribute heroin, possession of firearms in furtherance of a drug trafficking crime and possession of a firearm with an obliterated serial number. Ross entered into a plea agreement, in which she agreed to plead guilty to the heroin charge and cooperate with law enforcement officers. In return, the United States agreed to dismiss the two gun charges. Ross, however, failed to provide the required cooperation and thereby breached the plea agreement. As a result, the district court ruled that the United States was no longer bound by the plea agreement and was not obligated to dismiss the remaining counts in the indictment. Ross pled guilty to those two remaining counts today.
Based on her plea today, Ross faces a mandatory minimum five years imprisonment, and up to life imprisonment, on the charge of possessing the firearms in furtherance of a drug trafficking crime. Her conviction on that charge mandates that the sentence be consecutive to (added on to) the sentence on the other drug and gun charges. Sentencing has been scheduled for June 26, 2014.
The investigation was conducted by the Kanawha Bureau of Investigations.
Case Update: Central Valley Marijuana TraffickersRead the Press Release
FRESNO, Calif. — Marijuana cultivators from Inyo, Fresno, Kern and Stanislaus Counties entered guilty pleas today in three cases and sentenced in two for their involvement in separate large-scale marijuana cultivation operations, according to U.S. Attorney Benjamin B. Wagner.
Mexican Nationals Plead Guilty to Forest Marijuana Operation (1:13CR340 LJO)
Jose Aguilar Santoyo (“Aguilar”), 27, of Michoacàn, Mexico, and Jose Salvador Garcia Rodriguez (“Garcia”), 23, of Guanajuato, Mexico both entered guilty pleas to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land. According to court documents, U.S. Forest Service agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, including uFuran or Carbofuran, and 2,200 pounds of trash from a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest. Agents found Garcia at the grow site. Agents found Aguilar at a stash house associated with the grow site in Romoland in Riverside County. Marijuana shake and residue, shipping labels associated with the shipment of marijuana to Chicago, and a firearm were also found at the stash house. In pleading guilty, Aguilar and Garcia both agreed to pay $6,572.14 to the U.S. Forest Service for Hazmat removal and dumping fees associated with eradication of the grow site.Aguilar and Garcia are scheduled for sentencing on June 16, 2014. Aguilar faces a mandatory minimum prison term of five years and a maximum term of forty years, along with a fine of $5 million. Garcia faces a maximum prison term of twenty years and a fine of $1 million. Both are also subject to deportation to Mexico, upon completion of any prison term imposed. Their actual sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was investigated by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations of Immigration and Customs Enforcement (ICE), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office. The Environmental Protection Agency (EPA) also assisted in the investigation.
Fresno Man Pleads Guilty in River Marijuana Operation (1:12CR342 AWI)
Sam Kounhavong, 51, of Fresno, Calif., also entered a guilty plea to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown beside the San Joaquin River in the vicinity of Newman in Stanislaus County. In pleading guilty, Kouhnavong acknowledged that he and four other men cultivated 907 marijuana plants under the guise of compliance with California medical marijuana law. Although federal law does not recognize a medical purpose for marijuana, Kounhavong admitted that the marijuana was grown for profit without any medical purpose. During the execution of a search warrant at the grow site, agents also found a firearm and saw that water from the San Joaquin River had been diverted to irrigate the marijuana plants.
Kounhavong faces a maximum prison term of 20 years and a fine of up to $1 million. His actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables. He is scheduled for sentencing on June 2, 2014.
The case was investigated by federal agents from the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
Fresno Man Sentenced for Ag Grow (1:12CR2341 LJO)
Phonepaseuth Phaphilom, 27, of Fresno, was sentenced to 46 months in prison followed by 36 months supervised release for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno. During the execution of a federal search warrant there, narcotics agents found Phaphilom with four other men from out of the area, 2,932 marijuana plants, and a firearm. The men claimed the plants were being grown for medical reasons. While federal law does not recognize the medical use of marijuana, several of the men acknowledged that the operation was for profit, in violation of California law. Phaphilom, who was detained pretrial based in part on a criminal history that included weapons and narcotics violations, said he was going to sell the marijuana “up North” for $800 a pound. Based on a conservative one pound per plant yield, the cultivation operation was valued at over $2.3 million. In addition, court records indicate that some of the marijuana was destined for Las Vegas. The State of Nevada does not recognize the medical use of marijuana.
The case against Phaphilom was investigated by the DEA and Fresno County Sheriff’s Office.
Assistant United States Attorney Karen A. Escobar prosecuted the above cases.
Career Criminal Sentenced to 10 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Damien Gouse, 35, described at sentencing by the government as a career criminal with nearly 50 arrests who is currently serving a lengthy prison sentence in Massachusetts on felony assault charges, was sentenced by U.S District Court Judge John J. McConnell, Jr, on Tuesday to 10 years in federal for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
A federal court jury convicted Gouse in December 2013 on one count of being a felon in possession of a firearm. At trial, the government presented evidence that on November 29, 2007, at approximately 9:50 p.m., two Providence Police officers in a marked police cruiser conducted a routine traffic stop after observing a vehicle make two turns without using a turn signal. As the officers approached the vehicle they observed Gouse, who was alone in the vehicle, reach across the middle console of the vehicle toward the passenger side floor attempting to conceal an item. One of the officers illuminated the passenger area floor with a flashlight where he observed and then seized a .22 caliber handgun.
At sentencing, a prosecutor told the court that by his count Gouse had been arrested previously 47 times on a total of 99 charges.
The case was prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan, Richard B. Myrus and Lee H. Vilker.
The matter was investigated by the Providence Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Contact: 401-709-5357
[email protected]Canadian Businessman Ordered to Prison in $3 Million Telemarketing FraudRead the Press Release
LAREDO, Texas - Ragavan Thamby, 53, a Canadian citizen, has been sentenced to federal prison following his conviction of one count of conspiracy to commit telemarketing fraud, announced United States Attorney Kenneth Magidson along with Acting Special Agent in Charge Aaron C. Rouse of the FBI. Thamby pleaded guilty Aug. 15, 2012.
Today, U.S. District Judge George P. Kazen handed Thamby a sentence of 192 months in federal prison. At the hearing, additional testimony from family members of victims was presented including the effect the telemarketing scheme had on those elderly persons targeted. He was further ordered to pay restitution in the amount of $1,356,576 to the victims of his crime. In handing down the sentence, Judge Kazen noted, “the scheme was specifically to select older people because they were gullible and more vulnerable.” Judge Kazen further noted Thamby “did real damage.”
“This case demonstrates the FBI's commitment to investigate and prosecute those who are motivated by greed and who seek personal enrichment by defrauding investors,” said Rouse. “This behavior destroys the financial security of hard working individuals in our community.”
According to the plea agreement, between 2003 and 2007, Thamby and his associates contacted elderly Americans via telephone falsely representing to them that they or their deceased spouse had won a lottery or sweepstakes or that they had unclaimed funds. The organization’s telemarketers attempted to befriend these persons through numerous calls and detailed stories. To obtain the winnings, the individuals were informed they would have to send money to pay for taxes, fees and other costs. These identified individuals would send cash or checks, varying from a few hundred dollars to thousands of dollars without ever receiving their winnings.
This scheme was uncovered when FBI agents identified one such person in Zapata who was asked to send money to a mailbox in Canada. The FBI and Canadian law enforcement tracked this package and Canadian law enforcement observed Thamby pick up the package in Toronto, Canada. At the time of his arrest, Canadian law enforcement seized from Thamby target lists with contact information for individuals, “sucker lists,” checks mailed by targets of the scheme and complaint letters.
As a result of his fraudulent scheme, Thamby or his organization netted approximately $3 million from more than 600 victims.
Thamby will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by various Canadian and U.S. law enforcement agencies including, the Ontario (Canada) Provincial Police and the FBI. The case was prosecuted by Assistant United States Attorney (AUSA) Elizabeth Rabe and former AUSAs Sam Sheldon and Don J. Young.
California State Senator and Chee Kung Tong Drangonhead Among Twenty-Six Defendants Charged in Federal Criminal ComplaintRead the Press Release
SAN FRANCISCO – A federal criminal complaint, filed on March 24, 2014, was unsealed in San Francisco today, charging twenty-six defendants with firearms trafficking, money laundering, murder-for-hire, drug distribution, trafficking in contraband cigarettes, and honest services fraud, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
The defendants include Raymond “Shrimpboy” Chow, the current Dragonhead, or leader, of the San Francisco-based Chee Kung Tong organization (CKT), and State Senator Leland Yee, who represents San Mateo County and part of San Francisco County in the California Senate.
With respect to Chow, according to the Complaint, as FBI undercover agents infiltrated the CKT through introductions made by Chow and others, a pattern of alleged racketeering activity was uncovered.
According to the Complaint, as the relationship developed among the primary undercover agent, Chow, and other defendants, the undercover agent informed the defendants that he was interested in generating income from illegal schemes. The undercover agent was inducted into the CKT as a “Consultant.” Thereafter, during the course of multiple undercover operations, the undercover agent was allegedly introduced to a number of the defendants in order to launder money, traffic narcotics, traffic in firearms, traffic purportedly stolen cigarettes and liquor, and engage in murder-for-hire schemes.
Chow also introduced Keith Jackson to the undercover agent. Jackson, the owner and operator of “Jackson Consultancy,” a San Francisco based consulting firm, is a “Consultant” to the CKT. Jackson and his son, Brandon Jackson, allegedly responded to a request for weapons by the undercover agent, by indicating that Brandon Jackson, and an associate would be able to accommodate his request. Subsequently, Jackson, Brandon Jackson, and Marlon Sullivan sold various types of firearms, and two ballistic vests, to the undercover agent. Additionally, Jackson, Brandon Jackson, and Sullivan allegedly conspired to commit a purported murder for hire scheme requested by the undercover agent, in addition to other illegal activity, including the sale of stolen credit cards and the purported sale of cocaine to Jackson, Brandon Jackson, and Sullivan from the undercover agent.
Brandon Jackson introduced the undercover agent to Rinn Roeun, one of Brandon Jackson’s sources of supply for firearms. Roeun sold multiple firearms to the undercover agent and, during a series of conversations, told the undercover agent that he was willing to commit murder for a fee.
According to the Complaint, in addition to his relationship with Chow, and the CKT, Keith Jackson is also a close associate of Senator Leland Yee. From at least May 2011 through the present, Jackson has been involved in raising campaign funds for Yee.
With respect to Yee, the Complaint alleges that over the course of 2012 and continuing to the present time, Yee and Keith Jackson allegedly raised money and campaign funds for Yee’s Secretary of State campaign by soliciting donations from FBI undercover agents, in exchange for multiple official acts, and that Yee and Jackson were involved in a conspiracy to traffic firearms.
Starting in May 2011, according to the Complaint, and continuing for several months, Jackson solicited an undercover agent with the FBI to make contributions to Yee’s San Francisco mayoral campaign. These solicitations allegedly included asking the agent for donations in excess of the $500 individual donation limit. The agent declined to make any donations to Yee, but introduced Jackson and Yee to a purported business associate, another undercover FBI agent. Jackson and Yee then solicited the second undercover agent for campaign contributions. This solicitation resulted in at least one personal donation in the amount of $5,000 to Yee’s mayoral campaign.
After Yee lost the November 8, 2011, election, according to the Complaint, he had at least $70,000 in debt from that campaign. In connection with efforts to retire the mayoral campaign debt, according to the complaint, Yee and Jackson allegedly agreed that Yee would make a telephone call to a manager with the California Department of Public Health in support of a contract under consideration with the second undercover agent’s purported client, and would provide an official letter of support for the client, in exchange for a $10,000 campaign donation. Yee allegedly made the call on October 18, 2012, and provided the letter on or about January 13, 2013. On November 19, 2012, Jackson accepted the $10,000 cash donation.
According to the Complaint, in a further attempt by Jackson and Yee to gain money from one of the undercover agents, in August 2013, Jackson told the undercover agent that Yee had a contact who deals in arms trafficking. Jackson requested that the undercover agent provide a campaign donation on behalf of Yee, for Yee to facilitate a meeting with the arms dealer with the intent of the undercover agent to purportedly purchase a large number of weapons. During a meeting with the undercover agent, Yee and Jackson allegedly discussed details of the specific types of weapons the undercover agent was interested in buying and importing.
The defendants are charged as follows:
LELAND LIN YEE
- Conspiracy to Traffic in Firearms Without a License, and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
- Scheme to Defraud Citizens of Honest Services, in violation of 18 U.S.C. § § 1343, 1346, 2 (six counts)
KEITH JACKSON
- Conspiracy to Traffic in Firearms Without a License and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Scheme to Defraud Citizens of Honest Services, in violation of 18 U.S.C. § § 1343, 1346, 2 (six counts)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
KWOK CHEUNG CHOW, a/k/a RAYMOND CHOW, a/k/a SHRIMPBOY
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3) (three counts)
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315 (two counts)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
GEORGE NIEH
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3) (three counts)
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315 (two counts)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (two counts)
- Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1) (two counts)
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § § 841 and 846.
KEVIN SIU
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
ALAN CHIU
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
KONGPHET CHANTHAVONG
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § § 841 and 846 (two counts)
- Possession With Intent to Distribute Narcotics, in violation of 21 U.S.C. § 841
- Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (three counts)
- Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1)(three counts)
XIAO CHENG MEI, a/k/a MICHAEL MEI- Possession With Intent to Distribute Narcotics, in violation of 21 U.S.C. § 841
BRANDON JACKSON
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
MARLON SULLIVAN
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
RINN ROEUN
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
ANDY LI
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (two counts)
- Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1) (two counts)
LESLIE YUN
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
YAT WAH PAU, a/k/a JAMES PAU- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
JANE MIAO XHEN LIANG, a/k/a JANE LIANG
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315
TINA YAO GUI LIANG, a/k/a TINA LIANG
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
BRYAN TILTON
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
HUAN MING MA
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2315
HON KEUNG SO
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2315
NORGE MASTRANGELO
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
ALBERT NHINGSAVATH
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
SERGE GEE
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (three counts)
XIU YING LIANG, a/k/a ELAINE LIANG
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (three counts)
GARY KWONG YIU CHEN
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
ANTHONY LAI
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
WILSON SY LIM
- Conspiracy to Traffic in Firearms Without a License, and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
In a related case, a complaint filed on March 25, 2014, charging defendant BARRY HOUSE with one count of trafficking in firearms without a license, in violation of 18 U.S.C. § 922(a)(1), and one count of felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
The maximum penalties for the violations are as follows:
- 18 U.S.C. § 1956(a)(1) Twenty years in prison
Three years supervised release
$500,000 fine
$100 special assessment- 18 U.S.C. § 1956(a)(3) Twenty years in prison
Three years supervised release
$500,000 fine
$100 special assessment- 18 U.S.C. § § 371, Five years in prison
2314, 2315 Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § § 371, 2315, Five years in prison
2342(a), 2344 Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § 922(a)(1) Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § 922(g)(1) Ten years in prison
Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. §§ 371, Five years in prison
922(a)(1), 922(l) Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § 924(c) From five years to life
Five years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § 1958 Ten years in prison
Three years supervised release
$250,000 fine
$100 special assessment- 18 U.S.C. § § 1343, Twenty years in prison
1346, 2 Three years supervised release
$250,000 fine
$100 special assessment- 21 U.S.C. § 841 From five years to forty years in prison
Four years supervised release
$5 million fine
$100 special assessment- 21 U.S.C. § 841, 846 Five years in prison,
with five or ten year mandatory minimum
in some instances
Three to five years supervised release
$250,000 to $10 million fine
$100 special assessmentThe defendants, with the exception of Brandon Jackson, Sullivan, Liang, Nhingsavath, Mastrangelo, Gee, Yun, and Pau, were arrested today and made their initial appearances in federal court in San Francisco in front of United States Magistrate Judge Nathanael M. Cousins.
Yun and Pau were arrested yesterday in New York. Sullivan was arrested this morning in New Jersey and Brandon Jackson was arrested in Connecticut. Liang, Nhingsavath, Mastrangelo, and Gee are fugitives.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants are subject to the maximum penalties stated above. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
William Frentzen, Susan Badger, and Waqar Hasib are the Assistant U.S. Attorneys who are prosecuting the case. The prosecution is the result of a five-year investigation by the FBI, Internal Revenue Service-Criminal Investigations Division, San Francisco Police Department, Oakland Police Department, and Antioch Police Department.
Further Information:
Case #:CR-3-14-70421 NC
A copy of this press release may be found on the website of the U.S. Attorney's Office at http://www.justice.gov/usao/can/index.html.
Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.
Judges' calendars with schedules for upcoming court hearings can be viewed on the court's website at www.cand.uscourts.gov.
Press inquiries to the U.S. Attorney's Office should be directed to Lili AraúzHaase at (415) 436-6811 or by e-mail at [email protected].Criminal Complaint
California State Senator and Chee Kung Tong Dragonhead Among Twenty-Six Defendants Charged in Federal Criminal ComplaintRead the Press Release
SAN FRANCISCO – A federal criminal complaint, filed on March 24, 2014, was unsealed in San Francisco today, charging twenty-six defendants with firearms trafficking, money laundering, murder-for-hire, drug distribution, trafficking in contraband cigarettes, and honest services fraud, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
The defendants include Raymond “Shrimpboy” Chow, the current Dragonhead, or leader, of the San Francisco-based Chee Kung Tong organization (CKT), and State Senator Leland Yee, who represents San Mateo County and part of San Francisco County in the California Senate.
With respect to Chow, according to the Complaint, as FBI undercover agents infiltrated the CKT through introductions made by Chow and others, a pattern of alleged racketeering activity was uncovered.
According to the Complaint, as the relationship developed among the primary undercover agent, Chow, and other defendants, the undercover agent informed the defendants that he was interested in generating income from illegal schemes. The undercover agent was inducted into the CKT as a “Consultant.” Thereafter, during the course of multiple undercover operations, the undercover agent was allegedly introduced to a number of the defendants in order to launder money, traffic narcotics, traffic in firearms, traffic purportedly stolen cigarettes and liquor, and engage in murder-for-hire schemes.
Chow also introduced Keith Jackson to the undercover agent. Jackson, the owner and operator of “Jackson Consultancy,” a San Francisco based consulting firm, is a “Consultant” to the CKT. Jackson and his son, Brandon Jackson, allegedly responded to a request for weapons by the undercover agent, by indicating that Brandon Jackson, and an associate would be able to accommodate his request. Subsequently, Jackson, Brandon Jackson, and Marlon Sullivan sold various types of firearms, and two ballistic vests, to the undercover agent. Additionally, Jackson, Brandon Jackson, and Sullivan allegedly conspired to commit a purported murder for hire scheme requested by the undercover agent, in addition to other illegal activity, including the sale of stolen credit cards and the purported sale of cocaine to Jackson, Brandon Jackson, and Sullivan from the undercover agent.
Brandon Jackson introduced the undercover agent to Rinn Roeun, one of Brandon Jackson’s sources of supply for firearms. Roeun sold multiple firearms to the undercover agent and, during a series of conversations, told the undercover agent that he was willing to commit murder for a fee.
According to the Complaint, in addition to his relationship with Chow, and the CKT, Keith Jackson is also a close associate of Senator Leland Yee. From at least May 2011 through the present, Jackson has been involved in raising campaign funds for Yee.
With respect to Yee, the Complaint alleges that over the course of 2012 and continuing to the present time, Yee and Keith Jackson allegedly raised money and campaign funds for Yee’s Secretary of State campaign by soliciting donations from FBI undercover agents, in exchange for multiple official acts, and that Yee and Jackson were involved in a conspiracy to traffic firearms.
Starting in May 2011, according to the Complaint, and continuing for several months, Jackson solicited an undercover agent with the FBI to make contributions to Yee’s San Francisco mayoral campaign. These solicitations allegedly included asking the agent for donations in excess of the $500 individual donation limit. The agent declined to make any donations to Yee, but introduced Jackson and Yee to a purported business associate, another undercover FBI agent. Jackson and Yee then solicited the second undercover agent for campaign contributions. This solicitation resulted in at least one personal donation in the amount of $5,000 to Yee’s mayoral campaign.
After Yee lost the November 8, 2011, election, according to the Complaint, he had at least $70,000 in debt from that campaign. In connection with efforts to retire the mayoral campaign debt, according to the complaint, Yee and Jackson allegedly agreed that Yee would make a telephone call to a manager with the California Department of Public Health in support of a contract under consideration with the second undercover agent’s purported client, and would provide an official letter of support for the client, in exchange for a $10,000 campaign donation. Yee allegedly made the call on October 18, 2012, and provided the letter on or about January 13, 2013. On November 19, 2012, Jackson accepted the $10,000 cash donation.
According to the Complaint, in a further attempt by Jackson and Yee to gain money from one of the undercover agents, in August 2013, Jackson told the undercover agent that Yee had a contact who deals in arms trafficking. Jackson requested that the undercover agent provide a campaign donation on behalf of Yee, for Yee to facilitate a meeting with the arms dealer with the intent of the undercover agent to purportedly purchase a large number of weapons. During a meeting with the undercover agent, Yee and Jackson allegedly discussed details of the specific types of weapons the undercover agent was interested in buying and importing.
The defendants are charged as follows:
LELAND LIN YEE
- Conspiracy to Traffic in Firearms Without a License, and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
- Scheme to Defraud Citizens of Honest Services, in violation of 18 U.S.C. § § 1343, 1346, 2 (six counts)
KEITH JACKSON
- Conspiracy to Traffic in Firearms Without a License and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Scheme to Defraud Citizens of Honest Services, in violation of 18 U.S.C. § § 1343, 1346, 2 (six counts)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
KWOK CHEUNG CHOW, a/k/a RAYMOND CHOW, a/k/a SHRIMPBOY
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3) (three counts)
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315 (two counts)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
GEORGE NIEH
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3) (three counts)
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315 (two counts)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (two counts)
- Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1) (two counts)
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § § 841 and 846.
KEVIN SIU
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
ALAN CHIU
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
KONGPHET CHANTHAVONG
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § § 841 and 846 (two counts)
- Possession With Intent to Distribute Narcotics, in violation of 21 U.S.C. § 841
- Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (three counts)
- Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1)(three counts)
XIAO CHENG MEI, a/k/a MICHAEL MEI
- Possession With Intent to Distribute Narcotics, in violation of 21 U.S.C. § 841
BRANDON JACKSON
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
MARLON SULLIVAN
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
RINN ROEUN
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
- Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
ANDY LI
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
- Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (two counts)
- Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1) (two counts)
LESLIE YUN
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
YAT WAH PAU, a/k/a JAMES PAU
- Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
- Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
JANE MIAO XHEN LIANG, a/k/a JANE LIANG
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315
TINA YAO GUI LIANG, a/k/a TINA LIANG
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
BRYAN TILTON
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2314, and 2315
- Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § 846
HUAN MING MA
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2315
HON KEUNG SO
- Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2315
NORGE MASTRANGELO
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
ALBERT NHINGSAVATH
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
SERGE GEE
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (three counts)
XIU YING LIANG, a/k/a ELAINE LIANG
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (three counts)
GARY KWONG YIU CHEN
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
ANTHONY LAI
- Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
WILSON SY LIM
- Conspiracy to Traffic in Firearms Without a License, and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
In a related case, a complaint filed on March 25, 2014, charging defendant BARRY HOUSE with one count of trafficking in firearms without a license, in violation of 18 U.S.C. § 922(a)(1), and one count of felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
The maximum penalties for the violations are as follows:
18 U.S.C. § 1956(a)(1)
Twenty years in prison
Three years supervised release
$500,000 fine
$100 special assessment18 U.S.C. § 1956(a)(3)
Twenty years in prison
Three years supervised release
$500,000 fine
$100 special assessment18 U.S.C. § § 371,
2314, 2315Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment18 U.S.C. § § 371, 2315,
2342(a), 2344Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment18 U.S.C. § 922(a)(1)
Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment18 U.S.C. § 922(g)(1)
Ten years in prison
Three years supervised release
$250,000 fine
$100 special assessment18 U.S.C. §§ 371,
922(a)(1), 922(l)Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment18 U.S.C. § 924(c)
From five years to life
Five years supervised release
$250,000 fine
$100 special assessment18 U.S.C. § 1958
Ten years in prison
Three years supervised release
$250,000 fine
$100 special assessment18 U.S.C. § § 1343,
1346, 2Twenty years in prison
Three years supervised release
$250,000 fine
$100 special assessment21 U.S.C. § 841
From five years to forty years in prison
Four years supervised release
$5 million fine
$100 special assessment21 U.S.C. § 841, 846
Five years in prison,
with five or ten year mandatory minimum
in some instances
Three to five years supervised release
$250,000 to $10 million fine
$100 special assessmentThe defendants, with the exception of Brandon Jackson, Sullivan, Liang, Nhingsavath, Mastrangelo, Gee, Yun, and Pau, were arrested today and made their initial appearances in federal court in San Francisco in front of United States Magistrate Judge Nathanael M. Cousins.
Yun and Pau were arrested yesterday in New York. Sullivan was arrested this morning in New Jersey and Brandon Jackson was arrested in Connecticut. Liang, Nhingsavath, Mastrangelo, and Gee are fugitives.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants are subject to the maximum penalties stated above. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
William Frentzen, Susan Badger, and Waqar Hasib are the Assistant U.S. Attorneys who are prosecuting the case. The prosecution is the result of a five-year investigation by the FBI, Internal Revenue Service-Criminal Investigations Division, San Francisco Police Department, Oakland Police Department, and Antioch Police Department.
(CKT Criminal Complaint )
California Man Sentenced in Drug Conspiracy and Money Laundering SchemeRead the Press Release
United States Attorney Brendan V. Johnson announced that an Arcata, California, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on March 24, 2014, by U.S. District Judge Karen E. Schreier.
Jaymar Stanton Adams, age 30, was sentenced to 60 months in prison, to be followed by 4 years of supervised release. He will also forfeit $50,000 to the United States, which he acquired as a result of his illegal activities.
Adams is the last of seven defendants to be sentenced in this drug conspiracy and money laundering case, in which they all received prison time.
Adams was indicted on September 10, 2013, for Conspiracy to Distribute More Than 100 Kilograms of Marijuana and Conspiracy to Commit Money Laundering. He pled guilty to the distribution conspiracy charge on November 12, 2013, and the other charge was dismissed at sentencing.
Between the summer of 2008 and July 2012, Adams joined a conspiracy to illegally distribute marijuana in South Dakota and elsewhere. During his involvement, he personally grew, harvested, obtained, and illegally distributed marijuana. Throughout the course of the defendant’s involvement, marijuana was exchanged for cash and Adams personally accepted at least $50,000 in cash payments.
This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in both South Dakota and California, the Internal Revenue Service - Criminal Investigations, the South Dakota Division of Criminal Investigation, and the Humboldt County Sheriff’s Office in California. Assistant U.S. Attorney Connie Larson prosecuted the case.
Adams was remanded to the custody of the U.S. Marshals Service.
Brooklyn Man Sentenced to 59 Months in Prison for Conspiring to Distribute Crack Cocaine and Heroin in Rutland, VermontRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Eshone Williams, 33, of Brooklyn, New York, was sentenced yesterday by Chief U.S. District Court Judge Christina Reiss, to 59 months in prison for conspiring to distribute crack cocaine and heroin in February and March of 2013 in Rutland, Vermont. The Court also sentenced Williams to three years of supervised release after he completes his prison term.
According to Court records, in February of 2013, the Vermont State Police learned that several males were selling crack cocaine in Rutland from an apartment on Park Street. After a confidential informant purchased drugs from a person living in the apartment, law enforcement obtained a state court search warrant. During the search, Eshone Williams fled from the apartment on foot but was apprehended. When Williams was searched, law enforcement found 15 grams of crack cocaine, 62 bags of heroin, and $5,670 in his pants pockets. Back at the apartment, investigators located 300 bags of heroin and approximately 75 grams of crack cocaine in a coat belonging to Williams. A total of $13,676 in U.S. currency was seized from Williams’ person and from the apartment.
Williams was arrested on March 1, 2013 by Vermont State Police for state prosecution. Due to the serious nature of the offence, however, his case was later adopted by the Office of the United States Attorney, Tristram J. Coffin. On July 17, 2013, a federal grand jury indicted Williams for federal drug crimes. Williams pled guilty on December 9, 2013 to conspiracy to distribute cocaine base (crack cocaine) and heroin between approximately February, 2013 and March 1, 2013. Williams has been detained in prison since his arrest.
This case was investigated by the Vermont State Police. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Williams was represented by David McColgin, Assistant Federal Public Defender.Blairsville Man Sentenced to 20 Years in Prison for Producing Sexually Explicit Images of ChildrenRead the Press Release
PITTSBURGH - A resident of Blairsville, Pa., has been sentenced in federal court to 240 months in prison, followed by lifetime supervised release, on his conviction of sexually exploiting children by producing sexually explicit images, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Charles Joseph Payson, 46.
According to information presented to the court, an online undercover investigation detected Payson using a neighbor’s wireless internet connection to distribute sexually explicit images of children online. Following the seizure of computers and cameras from Payson’s home, investigators recovered sexually explicit images of prepubescent children, some of which had been produced by Payson.
Assistant United States Attorney Soo C. Song prosecuted this case on behalf of the government.
The Indiana County District Attorney’s Office, together with the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Payson.
Aurora, Colorado, Resident Sentenced to 63 Months in Prison for Money Laundering and Felon in Possession of A FirearmRead the Press Release
COUNCIL BLUFFS, IA - On March 25, 2014, Matthew Corey Cummings, a 31 year-old resident of Aurora, Colorado, was sentenced by United States District Court Judge John Jarvey to 63 months in prison for money laundering and for being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Cummings to serve two years of supervised release following his term of imprisonment.
On November 1, 2013, Cummings pled guilty to both charges as a result of an investigation being conducted by the Southwest Iowa Narcotics Task Force into the distribution of controlled substances being distributed in Pottawattamie County from Colorado. Money from the sale of these controlled substances was being returned to Colorado through a bank account which was set up for that purpose. In addition, when arrested while transporting marijuana into Pottawattamie County, Cummings was found to have a handgun in his possession.
The investigation was conducted by the Southwest Iowa Narcotics Task Force, Pottawattamie County Sheriff’s Office, Aurora Colorado Police Department, and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Antitrust Division Issues 2014 Edition of Its Annual NewsletterRead the Press Release
The Department of Justice’s Antitrust Division today issued the 2014 edition of its annual newsletter on its website. The newsletter highlights the Antitrust Division’s civil and criminal enforcement actions, international cooperation efforts and competition advocacy over the last year.
The newsletter includes a message from Assistant Attorney General Bill Baer, which focuses on the strong return on investment that antitrust enforcement provides, the division’s continued focus on litigation effectiveness and the division’s commitment to enforcing the antitrust laws and promoting competition in all sectors of the American economy. “We remain steadfast in our efforts to ensure that markets are free of anticompetitive restraints and consumers benefit from robust competition,” Assistant Attorney General Baer stated in his message.
This year’s update highlights the division’s criminal enforcement matters, including criminal fines, which totaled more than $1 billion for the third time since 2009, and incarceration for culpable executives. The division won trial victories in its ongoing real estate foreclosure auction investigation and its investigation into anticompetitive behavior at Environmental Protection Agency Superfund sites, and secured multiple guilty pleas in its automotive parts, tax liens and ocean shipping investigations.
Other newsletter articles describe the division’s civil enforcement program–including its trial victories against both Apple Inc. and BazaarVoice Inc. in the e-book and online ratings and review software industries, respectively. The division also reached civil settlements to protect consumers and preserve competition in the airline, broadcasting and deepwater oil well chemical industries.
The newsletter also features articles about the division’s use of new document production techniques and mergers that increase bargaining leverage.
Al Qaeda Spokesman Sulaiman Abu Ghayth Convicted in Manhattan Federal Court of Conspiring to Kill Americans, Providing Material Support to TerroristsRead the Press Release
Eric Holder, the Attorney General of the United States, Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, the Acting Assistant Attorney General for National Security, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Police Commissioner of the City of New York (“NYPD”), announced today that SULAIMAN ABU GHAYTH, a/k/a “Salman Abu Gayth,” Usama Bin Laden’s son-in-law and spokesman for al Qaeda, was found guilty today in Manhattan federal court of conspiracy to kill U.S. nationals, conspiracy to provide material support to terrorists, and providing material support to terrorists. GHAYTH is scheduled to be sentenced on September 8, 2014, at 2:30 p.m., before U.S. District Judge Lewis A. Kaplan, who presided over the three-week trial.
Attorney General Eric Holder said: “This verdict is a major milestone in the government’s unrelenting efforts to pursue justice against those involved with the September 11 attacks. I can imagine no more fitting outcome, and no stronger message to those who would harm our nation and its people: that no amount of distance or time can weaken America’s resolve to pursue, capture, and hold them accountable to the fullest extent of the law. I want to especially note that this verdict has proven that proceedings such as these can safely occur in the city I am proud to call home, as in other locations across our great nation. It was appropriate that this defendant, who publicly rejoiced over the attacks on the World Trade Center, faced trial in the shadow of where those buildings once stood. We never doubted the ability of our Article III court system to administer justice swiftly in this case, as it has in hundreds of other cases involving terrorism defendants. It would be a good thing for the country if this case has the result of putting that political debate to rest. This outcome vindicates the government’s approach to securing convictions against not only this particular defendant, but also other senior leaders of al Qaeda. I want to personally congratulate U.S. Attorney Bharara, his team in the Southern District of New York, and those who assisted in our National Security Division, for successfully prosecuting this case with the utmost integrity and professionalism. I also wish to thank the Federal Bureau of Investigation, the New York City Police Department, the U.S. Marshals Service, and Mayor de Blasio and the City of New York. This was truly a team effort.”
Manhattan U.S. Attorney Preet Bharara said: “Sulaiman Abu Ghayth arrived in the United States to face American justice on March 1, 2013, and in barely over a year he has been tried and convicted, and faces a possible life sentence. A jury unanimously found that Abu Ghayth not only conspired to provide, and actually provided, material support to al Qaeda, but also conspired to kill Americans. He was more than just Usama bin Laden’s propaganda minister. Within hours after the devastating 9/11 attacks, Abu Ghayth was using his position in al Qaeda's homicidal hierarchy to persuade others to pledge themselves to al Qaeda in the cause of murdering more Americans. Like the others who have faced terrorism charges in Manhattan’s federal courthouse before him, Abu Ghayth received a fair trial, after which a unanimous jury rendered its verdict, justly holding him accountable for his crimes. We hope this verdict brings some small measure of comfort to the families of the victims of al Qaeda’s murderous designs.”
Acting Assistant Attorney General John Carlin said: “This case highlights our resolve to find and bring to justice those who plot to attack our citizens and our interests around the world. As the face and voice of al Qaeda in the days and weeks after the 9/11 attacks, Abu Ghayth conspired with Usama Bin Laden and al Qaeda and announced to the world al Qaeda’s deadly intentions to continue to attack America. Today, he stands convicted and he will face justice for his role in al Qaeda’s lethal plot to kill Americans. I want to thank all of the agents, analysts, and prosecutors who are responsible for this result.”
FBI Assistant Director-in-Charge George Venizelos said: “A Manhattan jury found Abu Ghayth guilty for not only supporting a terrorist organization, but conspiring to kill Americans. Like a consigliere for the mob or the chief of staff to a corrupt foreign leader, Abu Ghayth was the spokesman, confidant, and senior adviser to Bin Laden's organization. Abu Ghayth looked to better al Qaeda's reputation at every turn –even just minutes after the 9/11 attacks - offering advice and counsel to the organization’s senior leadership. He encouraged others to abandon the true tenets of their faith, swearing bayat to the twisted ideology. The FBI's Joint Terrorism Task Force will relentlessly pursue anyone who supports this radical, violent terrorist agenda.”
NYPD Commissioner William Bratton said: “I applaud the members of the jury who wasted no time when coming to a decision to convict this preacher of hate for his involvement in attacks to kill Americans. I hope this verdict will bring some comfort to the families of the victims of September 11th, 2001.”
According to the evidence presented at trial, and other public proceedings in Manhattan federal court:
Since around 1989, al Qaeda has been an international terrorist organization, dedicated to opposing non-Islamic governments with force and violence. Usama Bin Laden served as the leader or “emir” of al Qaeda until his death on or about May 2, 2011. Members of al Qaeda typically have pledged an oath of allegiance, called bayat, to Bin Laden and to al Qaeda.
The core purpose of al Qaeda, as stated by Bin Laden and other leaders, is to support violent attacks against property and nationals, both military and civilian, of the United States and other countries. Between 1989 and 2001, al Qaeda established training camps, guest houses, and business operations in Afghanistan, Pakistan, and other countries for the purpose of training and supporting its agenda of violence and murder. Members and associates of al Qaeda have executed a number of terrorist attacks, all in furtherance of the organization’s stated conspiracy to kill Americans, including the attacks on the United States on September 11, 2001 in New York, Virginia, and Pennsylvania, which killed approximately 2,976 people.
From at least May 2001 up to around 2002, GHAYTH served alongside Usama Bin Laden, appearing with Bin Laden and his then-deputy Ayman al-Zawahiri, speaking on behalf of the terrorist organization and in support of its mission, and warning that attacks similar to those of September 11, 2001 would continue.
In particular, around May 2001, GHAYTH urged individuals at a guest house in Kandahar, Afghanistan, to swear bayat to Bin Laden. On the evening of September 11, 2001, immediately after the terrorist attacks on the United States, Bin Laden summoned GHAYTH and asked for his assistance, which he agreed to provide. On the morning of September 12, 2001, GHAYTH, appeared with Bin Laden and Zawahiri, and spoke on behalf of al Qaeda, warning the United States and its allies that “[a] great army is gathering against you” and called upon “the nation of Islam” to do battle against “the Jews, the Christians and the Americans.” Also, after the September 11, 2001, terrorist attacks, GHAYTH delivered a speech in which he addressed the then-U.S. Secretary of State and warned that “the storms shall not stop, especially the Airplanes Storm,” and advised Muslims, children, and opponents of the United States “not to board any aircraft and not to live in high rises.” At this time, in Afghanistan, Bin Laden and others within al Qaeda were plotting to detonate shoe bombs aboard flights within or en route to the United States.
Thereafter, GHAYTH arranged to be, and was, successfully smuggled from Afghanistan into Iran in 2002.
GHAYTH, 48, was convicted of one count of conspiring to kill United States nationals, in violation of Title 18, United States Code, Section 2332(b); one count of conspiring to provide material support to terrorists, in violation of Title 18, United States Code, Section 2339A; and one count of providing material support to terrorists, in violation of Title 18, United States Code, Section 2339A. The offenses carry a maximum term of life in prison. The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The convictions of Abu Ghayth are the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which principally consists of agents and detectives of the FBI and the NYPD – the United States Marshals Service and the National Security Division of the U.S. Department of Justice. The Justice Department’s Office of International Affairs and the U.S. Department of State also provided assistance.
The prosecution is being handled by Assistant United States Attorneys John P. Cronan, Nicholas J. Lewin, and Michael Ferrara of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance from Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section, Tara M. LaMorte of the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and Diane Gujarati, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office for the Southern District of New York.
U.S. v. Sulaiman Abu Ghayth S14 Indictment
Akron Physician and Three Employees Indicted for Illegally Prescribing Hundreds of Thousands of Painkillers and Other PillsRead the Press Release
An Akron physician and three of his employees were indicted for illegally prescribing hundreds of thousands of doses of painkillers and other pills to customers for no legitimate medical purpose, even after he learned some customers had died from overdose-related deaths, law enforcement officials announced today.
Adolph Harper, Jr., 63, of Akron, Adria Harper, 34, of Akron, Patricia Laughman, 51, of Barberton, Ohio, and Tequilla Berry, 35, of Akron, are all named in the 134-count indictment.
The charges include conspiring to traffic pharmaceutical drugs, drug trafficking and health care fraud. Together, they distributed hundreds of thousands of doses of prescription medications -- including Oxycontin, Percocet, Roxicet, Opana and others – from Adolph Harper’s medical officers in Akron between 2009 and 2012, according to the indictment.
Count 1 of the indictment charges all four defendants with conspiring to distribute addictive controlled substances, including prescription painkillers and anti-anxiety medication, outside the usual course of professional practice and without any legitimate medical purpose.
Adolph Harper’s customers, many of who were drug addicts exhibiting clear signs of drug addiction during their visits to his office, came to his office and received “prescriptions” for addictive prescription medications without being examined by Harper and often without seeing him at all, according to the indictment.
Harper continued to distribute “prescriptions” for controlled substances after he learned that some of his customers had died from overdose-related deaths, according to the indictment.
Adria Harper, Patricia Laughman, and Tequilla Berry distributed “prescriptions” to these customers when Adolph Harper was out of the office and also used Adolph Harper’s prescription pad to distribute “prescriptions” for addictive painkillers to themselves, according to the indictment.
Counts 2 through 83 charge Adolph Harper with individual distributions of Schedule II controlled substances including oxycodone, oxymorphone and methadone.
Counts 84 through 109 charge Adria Harper with individual distributions of “prescriptions” for Schedule II controlled substances that she wrote out for herself using Adolph Harper’s prescription pad and for “prescriptions” that she distributed to customers when Adolph Harper, Jr. was not in the office.
Counts 110 through 123 charge Patricia Laughman with individual distributions of “prescriptions” for Schedule II controlled substances that she wrote out for herself using Adolph Harper’s prescription pad.
Counts 124 through 130 charge Tequilla Berry with individual distributions of “prescriptions” for Schedule II controlled substances that she wrote out for herself in the name of an unknowing third party using Adolph Harper’s prescription pad.
Counts 131 through 134 charge Adolph Harper with health care fraud. Specifically, these counts charge him with executing four separate schemes to defraud health insurance providers by (1) submitting insurance claims for services using a higher billing code than the service justified; (2) submitting insurance claims for unperformed services; (3) billing an insurance provider for a service after collecting a cash payment for the same service; and (4) causing the submission of insurance claims for “prescriptions” for controlled substances that were issued outside the usual course of professional practice and not for a legitimate medical purpose.
“The charges describe a defendant who is simply a drug dealer with a stethoscope who happens to work from a medical office instead of a street corner,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “His actions destroyed families and lives.”
Steven D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “Just because you have a prescription pad does not give you a license to deal drugs. Not only did this doctor violate the physician’s oath but he also allowed others in his office to abuse his medical privileges.”
“DEA is pleased to acknowledge the indictment of Dr. Adolph Harper,” said Geno Corley, Resident Agent in Charge of the Drug Enforcement Administration’s Cleveland office. “This case was initiated by the Akron Police Department and investigated by FBI, Health and Human Services with assistance from the DEA Cleveland Resident Office, Ohio State Board of Pharmacy and the State of Ohio Medical Board. This arrest of Dr. Harper and his co-conspirators is another important step forward in the fight against the improper prescribing of dangerous and addictive prescription drugs.”
“This is great example of how state and federal collaboration can work to combat prescription drug abuse,” said Kyle Parker, executive director of the Ohio State Pharmacy Board.
This case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney, Edward F. Feran, and Rebecca C. Lutzko following an investigation by the Federal Bureau of Investigation, the Department of Health and Human Services -- Office of the Inspector General, the Drug Enforcement Administration, the Ohio Board of Pharmacy, and the Akron Police Department.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
ALBANY, NEW YORK - Richard S. Hartunian, United States Attorney for the Northern Districtof New York, makes statement regarding New York State Assembly Member William Scarborough.Read the Press Release
ALBANY, NEW YORK - Richard S. Hartunian, United States Attorney for the Northern District of New York, said, “The searches today of locations associated with New York State Assembly Member William Scarborough are part of an ongoing investigation about which there will be no further comment at this time. Mr. Scarborough has not been charged and is presumed innocent.”
17 Defendants Indicted in International ATM Skimming and Money Laundering Scheme; Two Arrested in BulgariaRead the Press Release
CHICAGO — Seventeen defendants are facing federal fraud or related charges for their alleged roles in an international ATM skimming and money laundering scheme involving hundreds of thousands of dollars. Two defendants were arrested in Sofia, Bulgaria, and 13 defendants were arrested yesterday in Chicago and several suburbs by FBI agents following a lengthy international investigation.
The alleged scheme involved using ATM and debit card numbers and the personal identification numbers associated with them, which were fraudulently obtained in Europe, to withdraw money from victims’ accounts using automated teller machines at various locations in the Chicago area. The charges were brought in a 29-count indictment, which was returned by a federal grand jury on March 12 and was unsealed following the arrests and made public today.
“These charges are the result of the hard work of dedicated law enforcement personnel both here and abroad to address a transnational crime problem that can affect virtually anyone with a bank account and carries significant financial consequences. Cooperation with international law enforcement agencies was crucial to the investigation, and we are grateful for the assistance that led to these arrests,” said Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The arrests and charges were announced by Mr. Holley and Zachary T. Fardon, United States Attorney for the Northern District of Illinois. They praised the cooperation of the State Agency National Security and the Supreme Prosecutor’s Office of Cassation in Bulgaria. The investigation is continuing, they said.
Two defendants, RADOSLAV PAVLOV, 36, of Sofia, Bulgaria, also known as “Radi,” charged with wire fraud, and MIHAIL PETROV, 41, of Sofia, charged with wire fraud, money laundering conspiracy and money laundering, were arrested in Sofia. The United States intends to seek their extradition to face the charges in U.S. District Court in Chicago. The indictment alleges that Pavlov, Petrov, and DOMENIKO EVITMOV, 46, of Chicago, who was arrested here, were located outside the United States and fraudulently obtained ATM and debit card numbers and PINs from locations in Europe and elsewhere without the actual account-holders’ knowledge.
Pavlov, Petrov, Evitmov, ALEXANDER SAVOV, 47, of Carol Stream, and others they directed, then transferred the fraudulently obtained information, often by Skype or email, to GHEORGUI MARTOV, also known as “Mitsubishi” and “Mitsu,” 39, of Schiller Park, who allegedly directed the scheme in the Chicago area. Martov gave the information to numerous codefendants to make the fraudulent withdrawals from area ATMs, the charges allege, and the defendants divided the money they obtained.
Martov and his wife, TEMENUGA KOLEVA, aka “Nushka,” 37, also of Schiller Park, were each charged with obstruction of justice for allegedly destroying computer files and internet browsing history during the course of the FBI’s investigation. KOLEVA was also charged with being an accessory after the fact to wire fraud.
Martov, Petrov, and EMIL GOSPODINOV, 44, of Chicago, who owned and operated BG Center Rodina, located 4828 N. Cumberland Ave., in Norridge, a business that transmitted funds via MoneyGram, among other things, were charged with money laundering conspiracy for allegedly transmitting the fraudulently obtained funds from the United States to Bulgaria and elsewhere. After receiving funds from Martov, Gospodinov transmitted the funds to Martov’s alleged co-schemers outside the United States using nominee senders and receivers on the transactions to disguise the true identities of those sending and receiving the funds.
The indictment seeks forfeiture of approximately $200,000 from 15 defendants as alleged proceeds of the fraud, and it also seeks approximately $50,000 from Martov, Petrov and Gospodinov as alleged proceeds of the money laundering.
The indictment alleges that once Martov obtained the ATM and debit card and PIN information he gave it to the following defendants to fraudulently withdraw money from area ATMs: IVAN KOTSELOV, 32, of Schiller Park; GEORGI VANGELOV, aka “Zhoro,” 26, of Schiller Park; SVETOSLAV NEDELCHEV, aka “Svetlyo,” 28, of Chicago; DANIEL YORDANOV, aka “Dani,” 29; DEYAN SLAVCHEV, aka “Dido,” 28, of Schiller Park; KARL POPOVSKI, aka “Kiro Papata,” 23, of Chicago; NIKOLAY TODOROV, aka “Niketsa,” 35, of Schiller Park; MLADEN GUEORGUIEV, 25, of Chicago; NEDISLAV GABOV, 33, of Chicago; and DIMO DESHKOV, 28, of Chicago.
After receiving the fraudulently obtained account data, defendants Kotselov, Vangelov, Nedelchev, Yordanov, Slavchev, Popovski, Todorov, Gueorguiev, and Gabov allegedly encoded the data onto the magnetic strip of blank or recycled cards. Once in possession of the encoded cards, various defendants traveled to Chicago area ATMs to withdraw funds. The defendants, acting at Martov’s direction, made ATM withdrawals shortly before and after midnight in the time zone of the issuing bank in an attempt to circumvent the daily withdrawal limits on the victims’ accounts. The defendants also coordinated ATM transactions to withdraw money before the issuing banks could detect the fraud and deactivate the ATM and debit card numbers.
Martov was charged with 22 counts of wire fraud and four counts of money laundering in addition to the money laundering conspiracy and obstruction counts. Fourteen other defendants were each charged with one or more counts of wire fraud. Gospodinov was charged with four counts of money laundering in addition to the money laundering conspiracy.
Martov, his wife and 11 other defendants were arraigned yesterday and pleaded not guilty to the charges against them before U.S. Magistrate Judge Daniel Martin. Two defendants, Gueorguiev and Gabov were released on bonds, while the other 11 defendants who appeared in court yesterday remain in federal custody pending detention hearings scheduled for tomorrow and Friday. Yordanov is a fugitive and a warrant was issued for his arrest. Todorov is in state custody and will be arraigned on the federal charges on a date to be determined.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. Money laundering conspiracy and each count of money laundering carry a maximum penalty of 20 years in prison and a $500,000 fine, or a fine totaling twice the value of the funds involved in the money laundering. The obstruction of justice count against Martov and Koleva carries a maximum of 20 years in prison and a $250,000 fine, and the accessory count against Koleva carries a maximum of 10 years in prison and a $125,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorneys Scott Edenfield, Matthew Getter, and Timothy Chapman. Assistant U.S. Attorney Matthew Burke guided the investigation before he transferred last week from the U.S. Attorney’s Office in Chicago to the Eastern District of Virginia. The Office of International Affairs of the Justice Department’s Criminal Division provided assistance with this case.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
14 “bloods” Street Gang Members---“macballers” Set---charged in A Federal Felony Complaint with Engaging in A Drug Trafficking Conspiracy in Binghamton, New YorkRead the Press Release
Federal Search Warrants Executed At 9 Locations In The Binghamton, New York Area.
BINGHAMTON, NEW YORK - United States Attorney Richard S. Hartunian announced that 14 members and associates of the Bloods Street Gang known as the “MacBallers” were charged today by way of a felony criminal complaint in federal court in Binghamton, New York with Engaging in a Drug Trafficking Conspiracy, pursuant to Title 21, United States Code, Sections 841(a)(1) and 846. Federal, state and local law enforcement teams executed arrest warrants in the greater Binghamton, New York area as well as in New York City. Defendants will make their appearances later today before a federal magistrate judge in federal court. Additionally, law enforcement also executed federal search warrants at 9 locations in the Binghamton, New York area including at the nightclub called “17 East”, located at 348 Clinton Street, Binghamton, New York, which was utilized and frequented by members of the MacBallers gang.
The investigation leading to today’s arrests and charges was conducted by members of a task force comprised of the U.S. Attorney’s Office, Binghamton, New York; FBI Albany Field Office and FBI New York Field Office; Broome County District Attorney’s Office; Binghamton Police Department; New York State Police; Broome County Sheriff’s Office; Johnson City Police Department; Endicott Police Department; and the U.S. Marshal’s Service.
The federal felony complaint charges that starting in September of 2009 and continuing up to the present, members and associates of the “MacBallers” set of the “Bloods” Street Gang operated in Binghamton, New York and were responsible for distributing large quantities of controlled substances including cocaine base (crack cocaine), powder cocaine, heroin, and marijuana in the greater Binghamton area. The complaint also charges that MacBaller members utilized rental vehicles and rental apartments to facilitate their drug trafficking conspiracy in order to “cook”, package, store, and transport controlled substances; utilized prepaid cellular telephones to contact drug customers and gang associates, both affiliated and unaffiliated to the MacBallers, in order to distribute controlled substances; engaged in gang meetings at various locations in the Binghamton area; utilized firearms including handguns to commit assaults, shootings, and to threaten others in furtherance of the MacBallers’ drug trafficking conspiracy.
The federal felony complaint also charges as follows as to each defendant:
a. DEREK CARR a/k/a “Jinx”, 29 years old, is affiliated to the Bloods Street Gang and believed to a member of the MacBallers. DEREK CARR is a close, personal associate of SAQUAN JOHNSON and who supplied SAQUAN JOHNSON with controlled substances including crack cocaine and heroin. DEREK CARR communicated with SAQUAN JOHNSON regarding the cooking, packaging, acquisition, and distribution of controlled substances including crack cocaine and heroin.
b. COURTNEY DOUGLAS a/k/a “Poppy”, 32 years old, is a member of the MacBallers who received supplies of crack cocaine and heroin from SAQUAN JOHNSON as well as crack cocaine from CHAD EDWARDS, JUAN PENA, and REGINALD SIMMONS, JR. and then distributed those controlled substances to drug customers. COURTNEY DOUGLAS communicated with other members of the MacBallers’ drug trafficking conspiracy including SAQUAN JOHNSON, CHAD EDWARDS, and JUAN PENA regarding the acquisition, distribution, and resale of controlled substances including crack cocaine and heroin.
c. LAMONT CLEMONS a/k/a “Stime”, 39 years old, is believed to be a family relative (cousin) of CALVIN JOHNSON and who transported supplies of controlled substances and distributed controlled substances on behalf of CALVIN JOHNSON. LAMONT CLEMONS also supplied SAQUAN JOHNSON with controlled substances including crack cocaine, heroin, powder cocaine, and marijuana. LAMONT CLEMONS communicated with SAQUAN JOHNSON regarding the acquisition, storage, transportation, distribution, and resale of controlled substances including crack cocaine, powder cocaine, heroin, and marijuana.
d. CHAD EDWARDS a/k/a “Chaddy O”, 31 years old, is a high ranking member of the MacBallers who was responsible for distributing large quantities of crack cocaine in Binghamton, New York. CHAD EDWARDS worked closely with JUAN PENA AND REGINALD SIMMONS, JR. to distribute controlled substances and shared the same cellular telephones with these individuals. CHAD EDWARDS communicated with other members of the MacBallers’ drug trafficking conspiracy including SAQUAN JOHNSON, JUAN PENA, REGINALD SIMMONS, JR., SHARELL HOLTON, and COURTNEY DOUGLAS regarding the acquisition, packaging, and distribution of controlled substances.
e. SHARELL HOLTON a/k/a “Rell”, 35 years old, is a known controlled substances distributor in Binghamton, New York who is believed to have been supplied by members of the MacBallers’ drug trafficking conspiracy including JOHN MELVILLE, CHAD EDWARDS, JUAN PENA, and REGINALD SIMMONS, JR. She allowed members of the MacBallers’ drug trafficking conspiracy, including JOHN MELVILLE and BRIAN WEST, to utilize her residence in Endicott, New York and distribute controlled substances from her residence. SHARELL HOLTON communicated with other known members of the MacBallers’ drug trafficking conspiracy including SAQUAN JOHNSON, CHAD EDWARDS, and JUAN PENA regarding the acquisition, storage, and distribution of controlled substances as well as the collection of drug proceeds.
f. LESLIE HUGHES a/k/a “Les”, 41 years old, is a Bloods Street Gang member and a known controlled substances distributor in Binghamton, New York who supplied SAQUAN JOHNSON with controlled substances including crack cocaine. LESLIE HUGHES worked for CALVIN JOHNSON and supplied SAQUAN JOHNSON with controlled substances to include crack cocaine. LESLIE HUGHES communicated with SAQUAN JOHNSON regarding the acquisition, cooking/mixing, packaging, and distribution of controlled substances, including crack cocaine, and the collection of drug proceeds.
g. CALVIN JOHNSON a/k/a “Cal”, 38 years old, is a known controlled substances distributor in Binghamton, New York who operated the nightclub, “17 East”, which was utilized and frequented by members of the MacBallers’ drug trafficking conspiracy. He also supplied SAQUAN JOHNSON, LAMONT CLEMONS, LESLIE HUGHES, and others with controlled substances including crack cocaine, powder cocaine, and marijuana. CALVIN JOHNSON communicated with SAQUAN JOHNSON regarding the acquisition, distribution, and storage of controlled substances including crack cocaine, powder cocaine, and marijuana, as well as the acquisition of a handgun/firearm.
h. SAQUAN JOHNSON a/k/a “Banga” a/k/a “Sa”, 23 years old, is a member of the MacBallers gang and is known as an enforcer/shooter who was responsible for the distribution of large amounts of crack cocaine, powder cocaine, heroin, and marijuana to other members of the MacBallers’ drug trafficking conspiracy including GERALD NORFLEET and COURTNEY DOUGLAS. SAQUAN JOHNSON was supplied with controlled substances from CALVIN JOHNSON, LAMONT CLEMONS, DEREK CARR, CHAD EDWARDS, JUAN PENA, REGINALD SIMMONS, JR., and DAYNELL ROWLAND. SAQUAN JOHNSON also communicated with other members of the MacBallers’ drug trafficking conspiracy including DEREK CARR, COURTNEY DOUGLAS, LAMONT CLEMONS, CHAD EDWARDS, SHARELL HOLTON, LESLIE HUGHES, CALVIN JOHNSON, GERALD NORFLEET, JUAN PENA, DAYNELL ROWLAND, and REGINALD SIMMONS, JR. regarding the acquisition, distribution, transportation, and cooking/mixing of controlled substances including crack cocaine, powder cocaine, heroin, and marijuana, as well as robberies, assaults, and firearms violations.
i. JOHN MELVILLE a/k/a “Flip” a/k/a “Fat Boy”, 29 years old, is a high ranking member of the MacBallers gang. JOHN MELVILLE was known to traffic large quantities of controlled substances including crack cocaine and powder cocaine into Binghamton, New York in order to distribute controlled substances and supply additional members of the MacBallers’ drug trafficking conspiracy including SHARELL HOLTON, CHAD EDWARDS, JUAN PENA, and REGINALD SIMMONS, JR.
j. GERALD NORFLEET a/k/a “G”, 55 years old, purchased controlled substances from SAQUAN JOHNSON and distributed controlled substances including crack cocaine. Additionally, he collected drug proceeds derived from controlled substance sales on behalf of SAQUAN JOHNSON AND LAMONT CLEMONS. GERALD NORFLEET also provided transportation for SAQUAN JOHNSON in order to facilitate drug transactions in furtherance of the MacBallers’ drug trafficking conspiracy. GERALD NORFLEET communicated with SAQUAN JOHNSON regarding the acquisition, packaging, and distribution of controlled substances, and the collection of drug proceeds derived from the sales of controlled substance including crack cocaine.
k. JUAN PENA a/k/a “John John”, 30 years old, is a high ranking member of the MacBallers who was responsible for distributing large quantities of crack cocaine. At one time, JUAN PENA also paid CALVIN JOHNSON an amount of United States currency to control and operate various illegal gambling games at CALVIN JOHNSON’S nightclub, “17 East.” JUAN PENA also communicated with other members of the MacBallers’ drug trafficking conspiracy including SAQUAN JOHNSON, CHAD EDWARDS, REGINALD SIMMONS, JR., SHARELL HOLTON, COURTNEY DOUGLAS, and others regarding the acquisition and distribution of controlled substances.
l. DAYNELL ROWLAND a/k/a “Daylo”, 31 years old, is a suspected member of the MacBallers who resides in Syracuse, New York and was responsible for supplying SAQUAN JOHNSON and others with large amounts of controlled substances including marijuana and heroin. DAYNELL ROWLAND introduced SAQUAN JOHNSON to his (DAYNELL ROWLAND’S) heroin supplier residing in the New York City area so SAQUAN JOHNSON could obtain large quantities of heroin directly from this individual. DAYNELL ROWLAND also expressed a desire for SAQUAN JOHNSON to become his main heroin distributor in Binghamton, New York. DAYNELL ROWLAND communicated with SAQUAN JOHNSON regarding the acquisition, cooking, packaging, and distribution of controlled substances, and the collection of drug proceeds derived from the sales of controlled substances.
m. REGINALD SIMMONS, JR. a/k/a “Reg” a/k/a “Moe”, 30 years old, is a member of the MacBallers who was responsible for distributing large quantities of crack cocaine. REGINALD SIMMONS, JR. worked with JUAN PENA AND CHAD EDWARDS to distribute controlled substances and shared the same cellular telephones with them for the purpose of distribution of controlled substances. REGINALD SIMMONS, JR. also communicated with other additional members of the MacBallers’ drug trafficking conspiracy including SAQUAN JOHNSON, JUAN PENA, CHAD EDWARDS, SHARELL HOLTON, and COURTNEY DOUGLAS regarding the demand, acquisition, packaging, and distribution of controlled substances.
n. BRIAN WEST a/k/a “West”, 27 years old, is a member of the MacBallers who was responsible for distributing large quantities of crack cocaine.
BRIAN WEST trafficked controlled substances into the Binghamton, New York area with JOHN MELVILLE and who supplied other members of the MacBallers’ drug trafficking conspiracy including SHARELL HOLTON, CHAD EDWARDS, JUAN PENA, and REGINALD SIMMONS, JR. BRIAN WEST also utilized SHARELL HOLTON’S residence to distribute controlled substances.
If convicted, each defendant faces an imprisonment term of at least 10 years and up to life.
All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in court.
10th Street Gang Member Sentenced on Racketeering ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Charles Watkins, 33, of Buffalo, who was convicted of RICO conspiracy, was sentenced to 65 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2010, the defendant was a member of the 10th Street Gang. As a part of his involvement in the gang, Watkins, along with other members and associates of the gang, sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
The defendant is among 44 10th Street Gang members and associates charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
10th Street Gang Member Pleads Guilty to RICO Conspiracy Involving a Murder; Five Others Also Plead Guilty to RICO ConspiracyRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Miguel Moscoso, 23, of Buffalo, N.Y., pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) before U.S. District Judge Richard J. Arcara. The defendant murdered Christian Portes, a member of the rival 7th Street Gang, on June 13, 2009 at the corner of Whitney Place and Maryland Street. Moscoso faces a maximum sentence of life in prison and a $250,000 fine.
In addition, five other members of the 10th St. Gang pleaded guilty to Racketeering charges. Defendants Matthew Deynes, 32, David Deynes, 32, Charles Watkins, 32, and Nourooz Ali, 30, all of Buffalo, face a maximum sentence of 20 years in prison and a $250,000 fine. Defendants Desmond Ford, 32, also of Buffalo, faces a maximum sentence of life in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2010, the defendants were members of the 10th Street Gang. As a part of their involvement in the gang, the defendants, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
The defendants are among 44 10th Street Gang members and associates charged in this case. A total of 37 have been convicted.
The pleas are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
Matthew Deynes and David Deynes will be sentenced on July 18, 2014; Desmond Ford will be sentenced on July 24, 2014; Charles Watkins will be sentenced on July 25, 2014; Nourooz Ali, will be sentenced on July 28, 2014, and Miguel Moscoso will be sentenced on July 30, 2014 at 12:30 p.m., all before Judge Arcara.
Tuesday 25 March 2014
William Birch “Bill Bill” Gudger Sentenced to Serve 125 Months in Prison for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – William Birch Gudger, a.k.a. “Bill Bill”, 35, of Greeneville, Tenn., was sentenced on Mar. 24, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 125 months in federal prison for his involvement in a crack cocaine conspiracy.
In April 2013, Gudger was arrested on an unrelated charge and placed in the Greene County Detention Center. While incarcerated, Gudger contacted Misty Lee Millar, 34, of Greeneville, Tenn., and asked her to go to his houses and “secure everything,” meaning for her to move his drugs so the police and/or rival drug dealers would not find them. Law enforcement officers subsequently searched Millar’s residence and recovered over 113 grams of crack cocaine, which she had moved from Gudger’s residences.
Search warrants were executed at both of Gudger’s residences in Greeneville, during which officers located digital scales, ammunition, paraphernalia and other miscellaneous items. Gudger was interviewed by law enforcement officers and admitted that he had asked Millar to remove his crack cocaine from his residences for him. He also admitted to cooking and dealing crack cocaine. Gudger told officers he had received three ounces of cocaine the previous week and cooked it into crack cocaine at one of his residences.
In May 2013, Gudger sold approximately 2.3 grams of crack cocaine to an individual working on behalf of law enforcement at one of his residences. In August 2013, Gudger was arrested again with to two to three grams of crack cocaine on his person.
Millar was previously sentenced by U.S. District Court Judge J. Ronnie Greer to serve 60 months in federal prison for her role in the conspiracy.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Gudger include the Third District Judicial Drug Task Force, Greene County Sheriff’s Office, Greeneville Police Department, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Wayne Taylor represented the United States.
Waycross Man Sentenced to 210 Months in Prison for Firearms ViolationRead the Press Release
WAYCROSS, GA -- DERECK JEROME BROWN, 33, of Waycross, Georgia, was sentenced last week before Chief United States District Court Judge Lisa Godbey Wood to 210 months in prison for possessing a firearm as a convicted felon.
Evidence presented during Brown’s guilty plea and sentencing hearings revealed that in October 2012, a search warrant was conducted at Brown’s home, which resulted in the discovery of a Lorcin 9mm pistol, crack cocaine, marijuana, and a significant amount of cash. At the time, Brown was prohibited from possessing the firearm and qualified as an Armed Career Criminal as a result of four prior felony convictions involving cocaine trafficking and the obstruction of law enforcement officers.
United States Attorney Edward J. Tarver said, “The United States Attorney’s Office must, and will, continue to aggressively prosecute those who endanger the safety of our communities. Successful investigations like these are the result of cooperation between federal, state, and local law enforcement agencies.”
Brown’s case resulted from a joint investigation by ATF and the Waycross Police Department. Assistant United States Attorney Jennifer G. Solari prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201 2547.
Wagoner Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that on March 25, 2014, MAURICIO ORTIZ-VARGAS, a/k/a MAURICIO ORTIZ, a/k/a MAURICIO HERNANDEZ-CHAVEZ, a/k/a MAURICIO HERNANDEZ, age 36, of Wagoner, Oklahoma, pled guilty to Conspiracy to Possess with intent to Distribute and Distribute 500 grams or more of a methamphetamine mixture, in violation of Title 18, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A).
The charge is a result from an investigation by the Oklahoma Highway Patrol, the Drug Enforcement Administration and the Department of Homeland Security Investigations – Immigration and Customs Enforcement. The defendant was indicted in June, 2013.
The Indictment alleged that beginning in or about 2009 until on or about April 18, 2013, the defendant conspired with others to possess with intent to distribute and distribute 500 grams or more of a methamphetamine mixture.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the defendant’s plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 10 years imprisonment, and/or up to a $10,000,000.00 fine. Assistant United States Attorney Shannon Henson represented the United States.
Vero Beach Resident Charged in Armed RobberyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Deryl Loar, Indian River County Sheriff, announce the arrest of Glenn Thomas Carvajal, 34, of Vero Beach. Carvajal made his initial appearance in federal court yesterday before U.S. Magistrate Judge Frank J. Lynch Jr. in Ft. Pierce. After a detention hearing, Carvajal was detained, pending trial, as a risk of flight and danger to the community.
More specifically, the complaint charges the defendant with interfering with commerce by threats or violence (robbery), in violation of Title 18, United States Code, Section 1951(a), and possessing and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). If convicted of interfering with commerce by threats or violence (robbery), the defendant faces a possible statutory maximum sentence of up to 20 years in prison. If convicted of possessing and brandishing a firearm in furtherance of a crime of violence, the defendant faces a consecutive seven year term in prison.
According to the allegations in the criminal complaint, on October 10, 2013, Carvajal entered the Game Stop store located in Vero Beach. Carvajal handed the employee a hand written note, which read “I have a gun, please empty the register as soon as possible” and showed the employee a black semi-automatic handgun. Carvajal took hundreds of dollars’ worth of inventory and property from the employee. Before Carvajal exited the store, he warned the employee that he had someone monitoring the phones, to wait 15 minutes before calling the police and threatened that if the employee failed to comply, he knew who he was, where he lived, and would kill or hurt him or one of his family members. Investigators have confirmed that Carvajal was previously employed by Game Stop as a manager.
Mr. Ferrer commended the investigative efforts of ATF and the Indian River County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A complaint is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. and Canada Antitrust Agencies Issue Best Practices for Coordinating Merger ReviewsRead the Press Release
The Department of Justice, the Federal Trade Commission (FTC), and the Competition Bureau Canada today issued a set of “best practices” to make more transparent how they coordinate merger reviews that affect the United States and Canada.Assistant Attorney General for the Department of Justice’s Antitrust Division Bill Baer, FTC Chairwoman Edith Ramirez and Canadian Commissioner of Competition John Pecman praised the long record of successful cooperation between the two jurisdictions, and noted that cross-border coordination and cooperation in merger matters have steadily increased over the last decades.
The best practices set forth how effective day-to-day cooperation works between the two U.S. agencies and the Competition Bureau, including how the agencies communicate with each other, benefit from the similarity of their respective merger review timetables, cooperate in the analysis of evidence, use waivers of confidentiality provided by the parties and address remedies and settlements. The best practices also seek to promote cooperation and coordination between the U.S. and Canadian agencies in order to enhance the likelihood of consistent outcomes when the same merger is reviewed in both countries. In addition, the best practices acknowledge the contribution that merging parties can make in facilitating cooperation, and provide guidance to firms about how to work with the agencies to coordinate and facilitate the reviews of their proposed transactions.
“The strong relationship between the U.S. and Canadian competition agencies has allowed us to cooperate closely and effectively on many merger investigations,” said Assistant Attorney General Baer. “The best practices we are issuing today are a testimony to our agencies’ long-standing and productive working relationship and the importance all of our agencies place on transparency.”
“We have developed a very close working relationship with our Canadian colleagues based on our shared approach to the implementation of our competition laws and policies,” said FTC Chairwoman Ramirez. “These best practices exemplify our commitment to cooperation and convergence, benefiting our agencies, merging parties, and ultimately consumers.”
The best practices, which do not modify existing law, build upon the framework of the 1995 antitrust cooperation agreement between the United States and Canada and the experience gained under that framework.Related Materials:
U.S. and Canada Antitrust Agencies Best Practices
Two Carbondale Residents Charged with Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn February 4, 2014, Heather L. Richey, 38, and Leeann M. Simmerman, 20, both of Carbondale, were charged by indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. The two co-defendants made their initial appearances in federal court on March 25, 2014. They are currently being held without bond pending a March 28, 2014, detention hearing.
The methamphetamine offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Three New London Men Charged with Federal Offenses Stemming from 2012 HomicideRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, New London Police Chief Margaret Ackley and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Havenreturned an indictment yesterday charging three New London men with various offenses stemming from the September 2012 homicide of Javier Reyes, 36, of New London.
As alleged in the indictment, OSCAR VALENTIN, also known as “Tato,” 40, operated and managed a narcotics distribution enterprise at the “Green Garages,” a series of garage bays located as 12/14 Walker Street in New London. In the summer of 2011, VALENTIN was the intended victim of a murder-for-hire plot orchestrated by former members of his enterprise in an attempt to take over narcotics distribution at the Green Garages. In September 2012, VALENTIN hired NESTOR PAGAN, also known as “Ernie” and “Naeem Medina,” 31, ANDREW AVILES, also known as “P.A.” and “Papo,” 26, and others, to assault Javier Reyes in an attempt to maintain his position as head of the Green Garages conspiracy. On the evening of September 12, 2012, Reyes was stabbed multiple times outside of his apartment at 187 Huntington Street in New London, and died a short time later.
“This indictment alleges that Oscar Valentin orchestrated the brutal attack of Javier Reyes as part of his criminal drug dealing enterprise, while Nestor Pagan, Andrew Aviles and others executed Valentine’s order,” stated U.S. Attorney Daly. “The investigation and prosecution of violent offenders is a top priority of the U.S. Attorney’s Office and our law enforcement partners. I commend our partners, the New London State’s Attorney’s Office, the New London Police Department, the FBI, the State Police, the Department of Correction, HSI and Secret Service, for their thorough investigation that has led to these serious charges.”
“The New London Police Department is thankful to the FBI and U.S. Attorney’s office for their close working relationship on this case, and the combined effort of the Connecticut State Police Major Crime Squad, Homeland Security and Secret Service for their efforts leading to this indictment,” stated New London Police Chief Ackley. “New London Detective Curcuro has been quietly working on this case with the FBI and U.S. Attorney’s office since September 2012 and we look forward to a continued working relationship.”
“Narcotics trafficking and the inescapable violent crimes associated with it plague our cities,” stated FBI Special Agent in Charge Ferrick. “Holding those accountable for crimes which impact quality of life for city residents is important to the FBI and to all our law enforcement partners. We stand shoulder-to-shoulder with the New London Police Department in working to bring some sense of relief to the victim’s family and the residents of New London. I’d like to thank the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations and the U.S. Secret Service, and the hard-working officers and agents assigned to this investigation, for they remain resolute in their pursuit of justice.”
The four-count indictment charges VALENTIN, PAGAN and AVILES with one count of conspiracy to commit a violent crime in aid of racketeering, specifically an assault that resulted in serious bodily injury, and one count of committing a violent crime in aid of racketeering. The three defendants are also charged with using a facility in interstate commerce, namely a cellular telephone, with the intent to commit a crime of violence.
The indictment also charges VALENTIN and PAGAN with one count of conspiracy to distribute and to possess with intent to distribute cocaine.
If convicted of the charges, each defendant faces a maximum term of imprisonment of life.
VALENTIN has been in federal custody since his arrest on narcotics charges on April 3, 2013. PAGAN has been in federal custody since his arrest on unrelated firearms charges on December 13, 2012. AVILES is in state custody on unrelated charges.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the New London Police Department and the Federal Bureau of Investigation, with the assistance of the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, the U.S. Secret Service and the New London State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Sarah Karwan, and Senior Assistant State’s Attorney Paul Narducci.
A principle of the Justice Department’s Smart on Crime initiative is the prioritization of prosecutions to focus on the most serious cases. To learn more about the Smart on Crime initiative, click here: http://www.justice.gov/ag/smart-on-crime.pdf.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Tax Preparer Pleads Guilty to Filing False ReturnsRead the Press Release
Claimed False Deductions, Business Losses and First Time Homebuyer Credits
on Federal Tax ReturnsBaltimore, Maryland - Judianne Horn, age 43, of Owings Mills, Maryland pleaded guilty today to aiding in the preparation of false tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to her plea agreement, from 2007 to at least 2010, Horn was a tax return preparer who prepared approximately 3,000 tax returns for clients. Horn was self-employed and operated a tax preparation business out of her home in 2007 and again in 2010. In 2008 to 2009, Horn was employed at two other tax preparation businesses located in Owings Mills and Randallstown, Maryland. In all these years, Horn filed federal tax returns which she knew included false deductions and/or false business losses, thus generating a larger tax refund than the client was otherwise lawfully entitled. The total tax loss generated by these false tax returns is $281,764.Additionally, Horn also filed numerous false tax returns which claimed that the client was entitled to the first time home buyer credit. The credit was designed for persons who purchased a new home after April 8, 2008, and before May 1, 2010 and who did not own a home in the prior three years. A qualified taxpayer could receive a credit of up to $8,000. On at least five tax returns involving a false home buyers credit, Horn claimed that the taxpayer qualified for this credit, when in fact the taxpayer had not purchased a home at all. Horn directed the full $8,000 credit to a bank account she controlled.
Horn has agreed to pay restitution to the IRS of up to $281,764.
Horn faces a maximum sentence of three years in prison followed by a year of supervised release and a fine of $250,000. U.S. District Judge Marvin J. Garbis scheduled sentencing for July 14, 2014 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for their work in the investigation and thanked Assistant U.S. Attorneys David I. Sharfstein and Gregory R. Bockin, who are prosecuting the case.Suspended Sacramento Attorney Sentenced to 46 Months for Tax CrimesRead the Press Release
SACRAMENTO, Calif. — Donald M. Wanland, 56, resident of El Dorado Hills, was sentenced today by United States District Judge Lawrence K. Karlton to 46 months in prison for convictions on 28 criminal counts, including tax evasion, failing to file tax returns, and removing, depositing, and concealing assets from the IRS in defiance of a levy, United States Attorney Benjamin B. Wagner announced.
Wanland is a Sacramento-area attorney who was convicted of the 28 tax-related counts on September 26, 2013, after a two week jury trial. During sentencing today, Judge Karlton noted that lawyers have a “special duty” and stated, “it is particularly distressing when a lawyer just disregards the law.” On February 19, 2014, the California State Bar placed Wanland on interim suspension as a result of his convictions, and he is currently not eligible to practice law.
Wanland stated to the Court at sentencing today that his conduct was driven by “greed, selfishness, and contempt.” According to evidence introduced at trial, Wanland evaded paying taxes for years. For tax years 2000 through 2003, he filed tax returns showing gross income of more than $1.5 million, for which he admitted owing taxes of $448,451. But he paid nothing. When the IRS tried to collect, Wanland concealed the bank accounts that he used to receive and spend his income, and then filed no tax returns at all for years 2004 through 2007. He continued working for his law firm and received more than $1 million total during those years. When the IRS placed levies on his income in April 2005, Wanland repeatedly defied the levies by continuing to funnel his income to the concealed nominee accounts. He spent the money on various items including a $2,700 weekend at Squaw Valley Ski Resort, payments on a Mercedes Benz and a Cadillac Escalade, gambling at Las Vegas casinos, vacations to Mexico and Hawaii, limousine services, and expenses for the pool at his home in El Dorado Hills. He also withdrew hundreds of thousands of dollars in cash and wrote hundreds of thousands of dollars in checks out of the concealed accounts.
“One of the obligations of American citizenship is to pay federal income taxes, and most people recognize that obligation” said U.S. Attorney Wagner. “It is particularly offensive when someone who has profited from the bounty of this society, like Don Wanland, shirks that duty. The fact that he will be contemplating his crimes from prison should send a message to others that no one is too busy, too clever, or too wealthy to comply with the tax code.”
“This is not a case of someone who simply fell behind in a good faith effort to keep up with their taxes,” said José M. Martínez, Special Agent in Charge, IRS Criminal Investigation. “Mr. Wanland is a lawyer who refused to obey the law and used his legal knowledge to cheat the federal and state governments out of more than $2.2 million. Those who intentionally undermine our tax system should know they will not go undetected and will be held accountable.”
According to court documents, Wanland tried to challenge the amount of tax loss connected to his by claiming his tax debts had been later discharged in a bankruptcy. The Court rejected this argument, noting that federal bankruptcy law automatically precluded Wanland’s tax debts from being discharged in bankruptcy because he engaged in willful tax evasion.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Matthew D. Segal and Christopher S. Hales prosecuted the case.
Wanland has been in custody since the date of his conviction on September 26, 2013. Following sentencing, he was remanded into the custody of the United States Marshal to serve the remainder of his sentence.St. Thomas Man Arrested and Detained for CarjackingRead the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe stated today that Troy J. Normil, 18, of St. Thomas, has been arrested and charged in a federal criminal complaint with Carjacking. Normil was arrested on March 20 and has been in custody pending a preliminary and detention hearing, which was held today before Magistrate Judge Ruth Miller. At the conclusion of today’s hearing, Magistrate Judge Miller found Normil was a flight risk and a danger to the community and ordered him detained pending trial. A trial date has not yet been scheduled.
According to the affidavit accompanying the criminal complaint, on November 23, 2013, Troy J. Normil and another individual blocked the roadway with a SUV as the victim traveled on the roadway. When the victim stopped because the roadway was blocked, Normil demanded money. When the victim stated he had none, Normil and his accomplice then stole the victim’s s cellular telephone and his Honda Elite Scooter at gunpoint. If convicted of the carjacking offense as alleged in the criminal complaint, Normil faces up to 15 years in federal prison.
United States Attorney Sharpe reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Nelson L. Jones.
St. Croix Man Indicted on Carjacking and Related ChargesRead the Press Release
St. Croix, USVI – United States Attorney Ronald W. Sharpe stated today that a federal grand jury in St. Croix has returned a seven-count indictment charging Abdallah Abdallah, 23, of St. Croix, with Carjacking, Using a Firearm During Crime of Violence, Robbery First Degree, Unauthorized Possession of Firearm During Violent Crime, Possession of Stolen Property, Unauthorized Possession of Ammunition and Felon in Possession of Ammunition. The indictment was returned on March 19, 2014.
According to the Indictment, on December 24, 2013, Abdallah and another individual carjacked a red Ford Focus at gunpoint from the victim. If convicted of the carjacking offense as alleged in Count One of the Indictment, Abdallah faces up to 15 years in federal prison. In addition, if Abdallah is convicted of using a firearm in connection with the carjacking offense, as alleged in Count Two of the indictment, he faces a mandatory term of imprisonment of 7 years in federal prison, which by law must be served consecutively to any sentence he receives for the carjacking offense.
Abdallah appeared today before U.S. Magistrate Judge George W. Cannon for a detention hearing and was ordered detained pending trial. A trial date has not yet been scheduled. United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
The case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Rhonda Williams-Henry and Alphonso Andrews.
Schenectady Woman Sentenced to 41 Months Imprisonment for Sending the Irs More Than $3.6 Million in Bogus PaymentsRead the Press Release
ALBANY, NEW YORK – PATRICIA ALFIERI, 53, of Schenectady, New York, was sentenced by Chief United States District Judge Gary L. Sharpe to 41 months imprisonment for mail fraud and filing a false return, announced United States Attorney Richard S. Hartunian and Internal Revenue Service Criminal Investigation Division Acting Special Agent in Charge Shantelle P. Kitchen. ALFIERI was also ordered to pay restitution to the Internal Revenue Service in the amount of $47,484.
As part of her December 4, 2013, guilty plea, AFLFIERI admitted that she mailed 65 bogus checks totaling more than $3.6 million to the IRS while she was a New York State Department of Taxation and Finance employee. ALFIERI’S actions caused the IRS to issue her more than $87,000 in bogus “overpayment refunds”. ALFIERI also admitted that she filed a false income tax return, over-reporting her federal income tax withholding and fabricating home mortgage interest and real estate tax payments.
The case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation Division, and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Remarks as Prepared for U.S. Attorney Paul J. Fishman at 2014 Anti-Violence SummitRead the Press Release
RUTGERS, LIVINGSTON CAMPUS, PISCATAWAY, N.J.
Good morning. Thank you, Andrew [Carey], for that introduction. During the three and a half years we worked together in the US Attorney’s Office, I got to see first-hand your dedication to the fight against violent crime and am delighted to have you as a partner. I want to thank John [Farmer], whom I have known now for more than 20 years. He has had a remarkable career in public service and I am proud to call him a close friend. And thank you to Rutgers – and by that, I mean all of you who work so hard here – for hosting this very important gathering.
Exactly three months ago, on Christmas Day, Zainee Hailey – a 13-year-old girl, an honor student, a cheerleader, a member of her church’s youth choir – took out the garbage and never came back. She was an innocent bystander, shot and killed by a bullet meant for a boy who was only a year or two older than she was.
One Saturday night, in early August, Barry Church was sitting on his front stoop with his son, enjoying a warm summer night. A stray bullet struck him in the side of his chest and killed him. That same night, Carmen Wright was crossing a street in Trenton when she was struck by a car that was out of control because the driver had been shot in the neck and his foot was stuck on the accelerator.
Ten days before Christmas, Dustin Friedland was gunned down in front of his new wife during a carjacking in the parking garage of the Short Hills Mall.
And on a September afternoon, three men in Camden, armed with an AK-47, sprayed 14 rounds across a park toward a housing project and hit a school bus filled with 35 preschoolers.
These stories resonate because they are the tales of the innocent – a young, teenage girl; a newly married husband Christmas shopping; a group of preschoolers on a bus. And even to a public that is used to hearing reports of violence almost every night on the news, hardened because those acts are so frequent, these stories shock us – the acts are so senseless, the consequences so stunning, that they stop us in our tracks. We are here for them.
But, as awful as those crimes are, everyone here knows they are the tip of the iceberg. There were 37 homicides last year in Trenton – a record for that city. There were 111 in Newark – the highest number in a quarter of a century – not to mention the almost 400 carjackings in and around that city, which is a level that exists nowhere else in the country. While some cities like Elizabeth, Atlantic City, and Camden did better than in 2012, Camden’s homicides still numbered 57 – a ridiculously high count for a city of that size. We don’t always – or maybe even often – hear about all of those victims. We are here for them too.
And all across the state – in communities like Asbury Park, Jersey City, Bridgeton and Plainfield – honest, hardworking mothers and fathers – and kids – live every day with an unacceptable level of violence. We are here for them.
Over the last four years, we have brought some very successful cases in federal court, and we will continue to focus relentlessly on the most violent offenders who are causing the most harm and wreaking the most havoc. The Dirty Block case in Atlantic City, the MS-13 case in Plainfield, the Southside Cartel case in Newark are just three examples of major ongoing prosecutions of gangs responsible for serious violence and the drug dealing that fuels it. We have worked with every county prosecutor in this room and with the local police in their jurisdictions to identify the most dangerous criminals in those communities and to try to take them off the streets. We have collaborated with every level of law enforcement – including, of course, Attorney General Hoffman and his office – to meet this challenge, using innovative methods and new ideas to complement old-fashioned police work. I have seen extraordinary things from what we call C-4, our unprecedented fusion center in Camden; from the various VEST (that’s Violent Enterprise Source Target) efforts around the state; and from the other inventive policing strategies you will hear more about today. And I want to thank all of the members of federal, state, county and local law enforcement who have made time to be here today; I am proud of you and their colleagues for your dedication and hard work.
But as talented as they and their colleagues are, and as successful as they’ve been, we all understand that law enforcement, acting alone, is not the answer. As my friend (and my boss), Attorney General Eric Holder, is fond of saying, we will never arrest our way out of this problem. Every great cop or agent, and every experienced prosecutor, knows that we just can’t do our jobs – we can’t win this fight – without the help, support and partnership of the community members we serve. While it is true that the violence is fueled by gangs, drugs and guns, we all recognize that towns with inadequate housing, communities with too few jobs, schools that are underperforming and dangerous and parks that are littered with needles and shell casings are not going to nurture a culture that is safe and secure. We know that there are thousands of law abiding, good people in those communities, aching for streets that they can walk in, schools that are safe and playgrounds where their children can actually play. But to help them reclaim the neighborhoods that they deserve – to give the children of those neighborhoods hope – we need to work with them, and they need to work with us.
This isn’t a new idea – not in New Jersey, and not to federal law enforcement officials. Back in my last tour in the U.S. Attorney’s Office, in the early 1990s, Trenton was the pilot project for a program called Weed and Seed. Funded by the Department of Justice, we developed a real partnership among my office, the State Attorney General, and the City of Trenton. We combined intensive community policing and stepped up drug enforcement in areas around three schools, which stayed open late into the evening so they could function like real community centers. Those neighborhoods were also the focus of extra housing rehabilitation and enhanced cultural activities. We called those schools “Safe Havens” – and we wanted to turn them into exactly that for the people in that community.
While that program is over, the concept – that those of us in law enforcement must seek out those in local government, non-profits, health and religious institutions, schools and treatment centers – the idea that we will achieve more together – that is what today is all about.
Today’s program is designed to emphasize that strategy and some of its pieces. First, we’re going to talk about enforcement strategies around the state – what’s working and what’s not. And I suspect what you’ll hear is that we have been most successful when we share intelligence, work hand-in-hand, and figure out together where each agency can most effectively deploy its resources in combination with everyone else. The goal is to be smart, and nimble, and efficient – making sure that violent and career offenders will continue to receive tough penalties.
There needs to be an emphasis on real community policing. From my days working on Weed and Seed, I know how vital it is for people in a neighborhood to have a real relationship with the cop on the beat. I know my good friend Scott Thompson, the Chief of the Camden County Police Department, will have a few things to say about that.
And we need to constantly think about crime prevention in a comprehensive way. An after school program for at-risk kids is crime prevention. Midnight basketball is crime prevention; and so is drug treatment; and the new inspiring federal reentry court we’re running in Newark. The various ceasefire programs that are being implemented in various forms in Newark, Trenton and Camden are exactly what we should be talking about.
But it’s broader than that too. The Choice Neighborhood grants that HUD gives out to places like Jersey City and Camden are a form of prevention – creating safe, affordable housing, while encouraging stable and responsible residents. And the grants from the Department of Education for Promise Neighborhoods in the Fairmount section of Newark and Cooper Lanning in Camden are targeted at kids in distressed communities who need better opportunities and a guiding hand. And that’s crime prevention.
But let me tell you something you already know: this is hard work. It is hard for law enforcement officers to work long hours investigating homicides and gang activity and to arrest the people responsible, only to have a new group take over and continue the violence.
It is hard for community groups to attract investment into their neighborhoods and clean up parks so their children can have a safe place to play, only to have drug dealers take over those parks and investors leave because a neighborhood is too dangerous.
It is hard, in a time of real fiscal challenge, to find the money to do what we need and accomplish what we want. Layoffs, tight budgets, reduced endowments – all make it that much more difficult to put boots on the ground and shovels in the ground.
And it is hard to break out of our silos, to try to figure out how other organizations work, and to decipher how people from other disciplines think and approach the same problems from different angles. There are personalities to mesh; priorities to work out; money to tussle over; and – yes – other acronyms to learn.
But this work is too important, the mission too critical, and the stakes too high for any of us to be frustrated by those obstacles.
So today, we will – I hope – make some real strides to overcome them. We will talk about ways to engage the people in our communities – to build their trust so that they are willing to help law enforcement identify and remove the worst offenders from their neighborhoods. We will discuss how law enforcement can improve lines of communication with the people, businesses and other institutions we serve so that we can focus our resources on where they can make the biggest difference. We’ll listen while service providers explain what they need from each other to reinforce their respective goals. And we’ll brainstorm about ways in which to come up with money to make it all just a little bit easier to accomplish.
I don’t know everyone here. But the many I do know come to the table, come to this room, come to this fight with energy, with commitment, with passion, with dedication and with insight. And I also know that everyone who is here understands that developing partnerships with other people and organizations – working for the same goals in the same neighborhoods – provides a new richness, diversity and thoughtfulness to our programs, and dramatically improves our chances of success. We can combat these problems so much more effectively by working together. And I am thrilled that so many of you are willing to join us.
Thank you for coming.14-101
Readout of Assistant Attorney General Bill Baer’s Meeting <br /> with International Competition Network MembersRead the Press Release
Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division today met with 35 international antitrust enforcement agencies and dozens of private antitrust practitioners in Washington, D.C., to emphasize the need for procedural fairness and transparency for parties in antitrust investigations.
At the International Competition Network (ICN) roundtable on investigative process, Baer applauded the progress that already has been made in the international competition community toward shared values of due process and transparency in antitrust investigations and stressed the importance of continuing that effort.Baer said that process and transparency matter. They help ensure that enforcers’ views are exposed to informed reaction and that parties understand the processes used to reach a particular outcome. Baer also said that when fair and transparent decision-making processes are in place, the legitimacy of the agency’s outcome is enhanced.
Baer encouraged newer antitrust enforcement agencies to adopt practices that would provide greater transparency and procedural fairness to parties in antitrust investigations. Some of the practices recommended include providing parties under investigation with information about the timing of antitrust agency’s decision-making, allowing parties to submit white papers and meet with investigating staff and decision-makers to present their views, and providing parties in investigations with regularly updated information about the agency’s concerns.
The ICN roundtable was co-hosted by the Department of Justice and the Federal Trade Commission. FTC Chairwoman Edith Ramirez also presented remarks.
Rapid City Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on March 14, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Damian Antonia Quintana, age 30, was sentenced to 120 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Quintana was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on May 21, 2013. He pled guilty on November 6, 2013.
From 2008 through May 2013, Quintana would receive ounce quantities of methamphetamine in Rapid City and further distribute it in South Dakota. Quintana distributed more than 1.5 kilograms of methamphetamine during the course of the conspiracy.
This case was investigated by the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Quintana was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Theft of Government PropertyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Theft of Government Property.
Harold Compton, age 56, was indicted on March 18, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 20, 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 charge relates to Compton illegally taking overtime payments in an amount greater than $1,000 while working as a Deputy Superintendent for the Bureau of Indian Affairs in 2009.
The charge is merely an accusation and Compton is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of Inspector General, U.S. Department of the Interior. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Compton was released on bond pending trial. A trial date has not been set.
Queens, N.Y., Tax Return Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
Williesteina Jacobs was indicted in the Eastern District of New York on March 21, 2014, and charged with 27 counts of aiding in the preparation of false returns, the Justice Department and Internal Revenue Service (IRS) announced today following her arrest.
According to the indictment, Jacobs owned and operated a tax preparation business called International Professional Business Services, which was located in South Richmond Hill, N.Y., and Jamaica, N.Y. The indictment charges that Jacobs prepared false personal income tax returns for clients for tax years 2007 through 2009. Jacobs allegedly attached false schedules that reported business losses the taxpayers did not incur and attached schedules that reported inflated or fictitious deductions.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jacobs faces a statutory maximum sentence of three years in prison and a fine of up to $250,000 on each count.
The case was investigated by special agents of IRS – Criminal Investigation. Trial Attorneys Jennifer Laraia and Stephen Descano of the Justice Department’s Tax Division are prosecuting the case .
Penn Hills Man Indicted on Heroin Possession ChargeRead the Press Release
PITTSBURGH – A Penn Hills man has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment named David Jerome Scott a/k/a David Jerome Alford, 40, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, the defendant possessed heroin with the intent to distribute it during February of 2014.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both, for first time felony drug offenders. Second and subsequent offenders face enhanced potential penalties of up to 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Palisade Man Pleads Guilty to Attempted Armed Bank RobberyRead the Press Release
DENVER – Jose O. Jimenez, age 27, of Palisade, Colorado, pled guilty last week to attempted armed bank robbery, United States Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Jimenez was one of three people indicted for their involvement in, or knowledge of, the attempted armed robbery of the Palisades National Bank. Jimenez pled guilty before U.S. District Court Judge R. Brooke Jackson on March 20, 2014. He is scheduled to be sentenced on July 23, 2014.
Co-defendant Bryan Morrow, age 22, of Palisade, Colorado, pled guilty before Judge Jackson on October 8, 2013. He is scheduled to be sentenced on April 30, 2014. Finally, Nicole Kozic, age 25, of San Bernardino, California, who knew that Jimenez and Morrow were involved in the attempted bank robbery, pled guilty to a Class A misdemeanor, interfering with an extradition agent before U.S. District Court Judge Robert E. Blackburn also on March 20, 2014. Kozic lied to an FBI agent who was working on locating Jimenez to extradite him to Washington State to face earlier criminal charges there. She is scheduled to be sentenced by Judge Blackburn on May 28, 2014.
According to the stipulated facts in Jimenez’s plea agreement, as well as other court documents, on Saturday morning, August 20, 2011, co-defendant Bryan Morrow drove defendant Jose Jimenez from Morrow’s home in Palisade, Colorado, to the Palisades National Bank, just a few blocks away. Morrow was driving a yellow Nissan XTerra. At approximately 8:20 a.m., Morrow dropped off Jimenez near the bank and positioned himself so he could watch the outside of the bank building. He and Jimenez had two-way radios to communicate with each other. At 8:25 a.m. the Manager of the Palisades National Bank entered the bank by the side door before it opened to the public. As per his usual routine, he checked the bank for security, and then let in the two waiting tellers through the front door. He then went back to the side entrance and opened the door, with the intent to go back to his car to retrieve items. The tellers were setting up their stations. When the bank manager opened the door, he saw work boots underneath the apricot trees by the back door. He was then confronted by Jimenez, who was carrying a gun in his right hand, wearing a black hoodie covered by a reflective work vest, a camouflage mask over half his face, jeans and work boots. He ordered the manager back into the bank. When one of the tellers realized a man with a gun was in the bank, she discretely pushed the silent alarm.
Jimenez ordered the bank manager to call the tellers to his location. He ordered the tellers to kneel, and place their hands on the wall. A third teller arrived and knocked on the door, and Jimenez ordered that she be let in. She joined the other two tellers kneeling at the wall. Jimenez went through her purse and pulled out her car keys. He asked that teller what kind of car she drove, and she responded that she drove a white mini-van.
Jimenez ultimately got the bank manager and a teller to open the bank’s vault. He ordered a teller to spread the money out on the counter to ensure it contained no dye packs. The tellers then put the money into a backpack Jimenez had found behind the counter in the bank and had emptied. The backpack belonged to a teller. Jimenez had a two-way radio, with which he spoke to Morrow. Morrow told Jimenez that someone was coming. Jimenez cocked the weapon and took the manager to the front door while the tellers continued with the money. A Palisade Police Officer arrived at the front door and knocked. Jimenez told the manager to meet the police officer. The bank door was opened, and the officer asked, “Is everything ok?” The manager discretely shook his head “no” and the officer saw Jimenez. Jimenez ordered the officer onto the floor and touched the muzzle of his gun to the officer’s head. Jimenez then obtained the officer’s weapon. The officer’s radio was on, and dispatch was requesting a status check. Jimenez told him to tell dispatch everything was fine, which he did.
When Jimenez went to check on the tellers’ progress, the officer leapt up and ran out of the bank. He immediately called for backup. Jimenez ran out of the bank after the officer. Because the bank was not yet open to the public, the door of the bank locked behind Jimenez and he could not get back into the bank after he broke off pursuit of the officer, who escaped unharmed. Jimenez, who could not access the substantial sum of money being prepared for him inside, entered the white mini-van and then met up with Morrow. Jimenez abandoned the mini-van and got into the front passenger seat of Morrow’s XTerra, and Morrow drove away from the bank.
“This violent attempted bank robbery victimized many innocent people and was thwarted by the resourceful actions of a police officer on the scene,” said U.S. Attorney John Walsh. “We are aggressively pursuing all those involved in this robbery to obtain justice for those victims.”
“The convictions of those who participated in this violent crime illustrate the ongoing relationship with our partners to ensure justice is served and our communities are protected,” said FBI Denver Division Special Agent in Charge Thomas P. Ravenelle.
Attempted armed bank robbery carries a penalty of not more than 25 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI and the Palisade Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Michelle Heldmyer.
Operator of Two Convenience Stores Sentenced to 2 Years in Prison for Food Stamp FraudRead the Press Release
Four Other Retailers Have Been Sentenced to Between Two and 38 Months in Prison
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Ahmed Ayedh Al-Jabrati, age 58, a citizen of Yemen residing in Baltimore, today to two years in prison, followed by three years of supervised release, for wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Quarles also ordered that Al-Jabrati pay restitution of $1.2 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Al-Jabrati operated two convenience stores, Second Obama Express and D&M Deli and Grocery, located next door to each other at 901 Harlem Avenue in Baltimore. According to their plea agreements and court documents, the stores participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Al-Jabrati knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from October 2010 to July 2013, Al-Jabrati exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves.
Judge Quarles determined today that Al-Jabrati obtained at least $1.5 million in payments for food sales that never occurred.
Eight of the 10 convenience store owners or operators who were indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud. Amara Cisse, age 50, of Windsor Mill, Maryland, was sentenced to 27 months in prison and ordered to pay restitution of $654,349.24, and his wife, Fanta Keita was sentenced to two months in prison. Retailer Hyung Cho, age 40, was sentenced to 38 months in prison, and his mother Dae Cho, age 67, was sentenced to 18 months in prison. The Chos were also ordered to forfeit $371,439.21 and pay restitution of $1.4 million. Two more retailers were indicted in January 2014.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who prosecuted the case.
Oacoma Man Charged with Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oacoma, South Dakota, man has been indicted by a federal grand jury for Lacey Act Violations.
Anthony Nogy, age 35, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 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 between September 24, 2013, and September 30, 2013, Nogy knowingly imported, transported, received, acquired and purchased in foreign commerce one gray wolf, when Nogy knew that said wildlife was taken without a valid hunting license and exported from Canada without the required permits.
The charge is merely an accusation and Nogy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Nogy was released on bond pending trial. A trial date has not been set.