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26 March 2014
Malvern, Iowa, Resident Sentenced to 132 Months in Prison for Manufacturing Methamphetamine Next to A SchoolRead the Press Release
COUNCIL BLUFFS, IA - On March 25, 2014, Jesse R. Salmons-Rice, a 31 year-old resident of Malvern, Iowa, was sentenced by United States District Court Judge John Jarvey to 132 months in prison for manufacturing methamphetamine within 1,000 feet of a school, announced U.S. Attorney Nicholas A. Klinefeldt. Salmons-Rice was also ordered to serve eight years of supervised release following the period of imprisonment.
On September 4, 2013, Salmons-Rice pled guilty to manufacturing methamphetamine within 1,000 feet of the real property of a school. The guilty plea was the result of an investigation by law enforcement into the manufacturing and distribution of methamphetamine in and around Mills County, Iowa. Salmons-Rice was found to have been manufacturing methamphetamine on or about November 6, 2012, in the loft of his garage which was located within twenty-eight feet of an elementary school in Malvern, Iowa.
The investigation was conducted by the Southwest Iowa Narcotics Task Force, the Mills County Sheriff’s Office, the Iowa State Patrol, and the Iowa Division of Narcotic Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Knoxville Resident Sentenced to 100 Months in Prison for Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn.– On Mar. 26, 2014, James Dale Parker, Jr., 41, of Knoxville, Tenn., was sentenced to serve 100 months in prison for possession of child pornography. Upon his release from prison he will be subject to 15 years of supervised release.
Parker pleaded guilty in August 2013, to possession of child pornography. Through the execution of a search warrant by agents with the Federal Bureau of Investigation 92 images and 265 videos of child pornography were found on a personal computer belonging to Parker.
Assistant U.S. Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jury Convicts Gunman of Beaumont CarjackingsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 22-year-old Beaumont man has been convicted of multiple crimes related to an armed carjacking spree in April 2012 in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Timothy Wayne Harris, Jr. a/k/a “J” was found guilty by a jury following a three-day trial before U.S. District Judge Thad Heartfield.
According to information presented in court, on April 17-18, 2012, Harris and Jerry Lee Edwards, 38, went on a crime spree outside a Beaumont restaurant and convenience store, Carl’s Jr. and the Calder Food Mart. On May 2, 2012, a federal grand jury indicted Harris and Edwards and charged them with two counts of carjacking, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit carjacking. The men have been detained since their arrests on April 24, 2012. The case was delayed for 17 months by psychiatric examinations of Harris, who was the gunman and leader of the offenses. Late last year, Harris was determined to be competent to stand trial
The jury today convicted Harris of all five counts. Harris faces a sentence of between 50 years and life in federal prison. Edwards pleaded guilty in January to conspiracy to commit carjacking, admitting that he knowingly joined in the crimes. Edwards faces up to 5 years in federal prison. Sentencing dates have not been set.
This case was prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case was investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John B. Ross and Special Assistant U.S. Attorney Catherine Cockrell. ####Isleta Pueblo Man Sentenced to Ten Years for Discharging a Firearm During a Crime of ViolenceRead the Press Release
ALBUQUERQUE – Paul Martin, 29, a member and resident of Isleta Pueblo, was sentenced this morning to 10 years in federal prison followed by three years of supervised release for discharging a firearm during a crime of violence.
Martin was arrested in April 2013, on an indictment charging him with assault with intent to commit murder, assault with a dangerous weapon, assault resulting in serious bodily injury, and using a firearm during a crime of violence. He has been in federal custody since that time.
According to the indictment, Martin committed these crimes on Oct. 17, 2012, by assaulting another Isleta Pueblo man within Isleta Pueblo.
Court filings reflect that Martin assaulted the victim by shooting the unarmed man multiple times at close range with a handgun.On Oct. 3, 2013, Martin pled guilty to count 4 of the indictment charging him with using a firearm in relation to a crime of violence. In entering his guilty plea, Martin admitted shooting the victim with a firearm on Oct. 17, 2013.
This case was investigated by the Albuquerque office of the FBI and the Isleta Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Huntington Man Convicted of Possessing and Attempting to Distribute Child PornographyRead the Press Release
Defendant was previously convicted of sexually assaulting a ten year old
HUNTINGTON, W.Va. –A 66-year-old Cabell County resident was convicted of possessing and attempting to distribute child pornography after a three-day bench trial in Huntington, West Virginia, United States Attorney Booth Goodwin announced today. Chief United States District Judge Robert C. Chambers found that John D. Hayes, of Huntington, West Virginia, knowingly possessed child pornography on computer equipment located in his residence and attempted to distribute child pornography via a file-sharing program.
The investigation began when it was discovered that child pornography was being shared via Frostwire between March 17 and April 28, 2012. The associated IP address was traced back to the Huntington residence of Hayes. Computer evidence subsequently seized from the Hayes’ home pursuant to a search warrant executed on May 24, 2012, including a portable USB drive, was forensically analyzed and determined to contain images and videos of child pornography. The forensic examination further revealed that one of the computers possessed by Hayes was loaded with the Frostwire program and had a unique user identification number (known as a GUID) that matched the GUID found to be sharing child pornography in March and April of 2012.
Hayes was previously convicted in the circuit court of Putnam County, West Virginia, in 1979 for two counts of second degree sexual assault, one of which involved a 10-year-old female.
Hayes faces a minimum mandatory 15 years and up to 60 years imprisonment, as well as a lifetime of supervised release. He is scheduled to be sentenced on July 7, 2014, in Huntington, West Virginia.
The investigation of Hayes was conducted by the West Virginia Internet Crimes Against Children Task Force, with the assistance of the Huntington Police Department and the West Virginia State Police. Assistant United States Attorneys Jennifer Rada and Lisa Johnston were in charge of the prosecution.
This case was prosecuted as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims.
Hot Springs Man Charged with Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hot Springs, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Jesse D. Grimm, age 32, was indicted on March 18, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 21, 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.
On January 20, 2014, Grimm, having been convicted of a previous felony, was in possession of a firearm, Glock Model 27, and the firearm had been shipped and transported in interstate commerce.
The charge is merely an accusation and Grimm is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Grimm was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Hazleton Man Charged in Drug Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton resident was arrested yesterday by federal agents for allegedly participating in a drug trafficking conspiracy that distributed cocaine and crack cocaine from January 2011 to the present.
According to United States Attorney Peter Smith, a federal grand jury sitting in Scranton indicted Jose Angeles, also known as “Catalino Rivera-Felix” and “Tito,” age 53, in January 2014. The grand jury alleges that Angeles conspired with others to distribute and possess with intent to distribute crack cocaine and powder cocaine in the Hazleton area during a three-year time period.
The Indictment also alleges that Angeles distributed and possessed with intent to distribute crack cocaine on May 25, 2012; October 19, 2012; September 4, 2013; and October 9, 2013.
The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation, the Pennsylvania State Police, Hazleton Police and Sugarloaf Police.
If the defendant is convicted of the charges, he faces up to 20 years in prison and a $1 million fine for each charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Habitual Batterer Sentenced to Federal PrisonRead the Press Release
MARQUETTE, MICHIGAN – Bradley Joseph Hase, 43, of Marquette, Michigan, was sentenced to the statutory maximum of 60 months in federal prison for domestic assault by an habitual offender, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Hase to serve three years of supervised release following his release from prison, and to pay a $100 special assessment.
On November 6, 2013, Hase pleaded guilty to count two of a federal indictment charging him with domestic assault by an habitual offender. The assault charge arose from an incident at a residence in Marquette County, Michigan, on Keweenaw Bay Indian Community reservation land on February 3, 2013. During this incident, Hase, a non-Indian, assaulted his girlfriend, a member of the Keweenaw Bay Indian Community, grabbing her by the face and throat and pulling out her hair. Hase had been convicted twice of domestic violence offenses in the 96th District Court, Marquette County, and was on probation for one of those offenses at the time of the assault in this case.
The Keweenaw Bay Indian Community Tribal Police, the Chocolay Township Police Department and the FBI investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case..
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Guam and Nevada Area Drug Traffickers Indicted in Joint Federal InvestigationRead the Press Release
(HAGATNA, GU) ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that a federal grand jury returned an indictment charging twelve (12) individuals as follows:
- FRANCISCO C. ARIAS, 38, EDER J. CORTEZ-ZELAYA, 31, DAVID G. QUINATA, 52, BRIAN G. QUINATA, 37, JOSEPH S.N. MANSAPIT, 43, JOHNNY J.S. QUENGA, 36, KEN J. NANGAUTA, 49, CORINNA M. CONCEPCION, 42, LAWRENCE P. CONCEPCION, 49, FLORENTINA P. DEPAMAYLO, 60, JOSHUA E. MOYE, 26, and RICHARD J. BORJA, 42, were charged with conspiracy to distribute more than 50 grams of methamphetamine. A conviction for conspiracy to distribute more than 50 grams of methamphetamine carries a mandatory minimum sentence of ten (10) years imprisonment and a maximum sentence of life imprisonment.
- ARIAS, CORTEZ-ZELAYA, QUENGA, CORINNA M. CONCEPCION, NANGAUTA, DAVID G. QUINATA, BRIAN G. QUINATA, MANSAPIT, and MOYE were also charged with conspiracy to commit money laundering which carries a maximum sentence of twenty (20) years imprisonment.
- ARIAS and CORTEZ-ZELAYA were charged with separate counts of unlawful use of the mail to facilitate the conspiracy to distribute methamphetamine which carries a maximum sentence of five (5) years imprisonment.
Defendants ARIAS and CORTEZ-ZELAYA were arrested in Las Vegas, Nevada. Other defendants were arrested in Guam. Initial appearances for the defendants have been held.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
This OCDETF investigation involved federal agents and local law enforcement officers of the U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA), U.S. Department of Homeland Security Investigations (HSI), Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. National Oceanic Atmosphere Administration (NOAA), and U.S. Coast Guard Criminal Investigative Service (CGIS). The case is being prosecuted by Assistant U.S. Attorney Clyde Lemons, Jr.
The public is reminded that an indictment contains only allegations 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.Georgia Man, Christopher Jamieson, Pleads Guilty to Receipt of Child PornographyRead the Press Release
CHRISTOPHER JAMIESON, age 31, a resident of Douglasville, Georgia, pled guilty today to receipt of child pornography, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, in November 2013, JAMIESON was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) and the United States Postal Inspection Service after they determined that JAMIESON was responsible for receiving videos depicting the sexual exploitation of children on the Internet. Today, JAMIESON entered a plea of guilty to knowingly receiving several videos depicting the sexual exploitation of children from Jonathan Johnson, the administrator of a multi-national child pornography website.
Sentencing is scheduled for June 25, 2014, before U.S. District Judge Martin L.C. Feldman. Receipt of child pornography carries a mandatory minimum sentence of not less than five (5) years and a maximum penalty of twenty (20) years imprisonment, supervised release of not less than five years up to life, and JAMIESON will have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
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Franklin and Cumberland County Drug Trafficking Conspirators Charged Federally in Connection with Local Man’s DeathRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Ashley Gries, 19, of Shippensburg, Pennsylvania; Danny Guy Forrester, 48, of Shippensburg; Gabriel John Stouffer, 30, of Newburg, Pennsylvania; Michael Anthony DeCarlo, 31, of Shippensburg; and Jeffrey Lynn Wright, Jr., 31, of Shippensburg, have been arrested and arraigned by Chief Magistrate Judge Martin C. Carlson on drug trafficking charges in federal court in Harrisburg today.
Gries, Forrester, Stouffer, DeCarlo and Wright were charged by indictment on March 19, 2014 by a grand jury in Harrisburg. According to U.S. Attorney Peter Smith, the indictment made public today, alleges that the defendants engaged in heroin trafficking in the Franklin and Cumberland County areas from October 2013 through March 2014. Gries, Forrester, and Stouffer were also charged with drug trafficking offenses that led to the death of 21-year-old Kyle Andrew Golter in Lurgan Township, on February 7, 2014.
Forrester, DeCarlo and Wright were detained pending trial. Gries and Stouffer were temporarily detained pending a detention scheduled for April 2, 2014.
According to the U.S. Attorney’s Office, Franklin County Coroner Jeffrey R. Conner determined that the cause of Mr. Golter’s death was the result of heroin toxicity.
“This case was initiated as the result of the heroin overdose death in Franklin County. Heroin overdoses are an all too common occurrence. Between 2009 and mid-2013, Franklin County had 5 heroin related overdose deaths, and there were 25 in Cumberland County during the same period,” said Drug Enforcement Administration Special Agent in Charge David G. Dongilli. “This is due in part to its availability and the fact that it has never been cheaper or more potent. Heroin doesn’t just kill people; it causes serious health problems, breaks up families, and destroys communities. DEA will continue to aggressively target traffickers and distributors bringing heroin and other drugs, including highly addictive prescription pain medications, into our communities.”
Gries, Forrester and Stouffer each face a mandatory minimum of 20 years’ imprisonment and a statutory maximum of life imprisonment for the drug trafficking offenses. DeCarlo and Wright face a statutory maximum of 40 years’ imprisonment.
This case is being jointly investigated by the Drug Enforcement Administration, the Shippensburg Police Department, the Pennsylvania State Police, the Cumberland County Drug Task Force, the Cumberland County District Attorney’s Office, the Franklin County District Attorney’s Office and the Office of the Franklin County Coroner. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Smith County Deputy Sentenced for Federal Drug ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 39-year-old Tyler, Texas former sheriff’s deputy has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kimbrick Bernard Jones pleaded guilty on Oct. 8, 2013, to conspiracy to possess with intent to distribute and distribution of more than 50 grams of methamphetamine and less than 28 grams of crack cocaine and was sentenced to 72 months in federal prison on Mar. 25, 2014 by U.S. District Judge Leonard E. Davis.
According to information presented in court, from 2012 up until July 10, 2013, jones, who had been employed by the Smith County Sheriff’s Office for about 10 years, admitted to having distributed over 50 grams of methamphetamine and less than 28 grams of crack cocaine while on duty as a Smith County Deputy Sheriff. Jones was indicted by a federal grand jury on July 25, 2013.
This case was investigated by the Federal Bureau of Investigation, Smith County Sheriff’s Office and the Texas Rangers and prosecuted by Assistant U.S. Attorneys Richard Moore and Jim Middleton.
####Former Real Estate Broker Arrested on Fraud ChargesRead the Press Release
BOSTON – A Mansfield man was arrested Monday and arraigned in U.S. District Court in Boston on Tuesday, March 24 on charges that he defrauded a married couple out of nearly $200,000 in connection with alleged real estate transactions.
Michael David Scott, 48, was indicted on five counts of wire fraud. Scott is currently awaiting a June 2, 2014 trial in federal court involving unrelated mortgage frauds charges. U.S. District Court Magistrate Judge Marianne B. Bowler ordered Scott detained pending further proceedings.
The Indictment alleges that from 2001 to 2013, while Scott was a real estate broker, he collected $199,000 as deposits for the purchases of three properties by a husband and wife. Although Scott promised to hold the funds in escrow, he instead spent them for his own use. It is also alleged that Scott knew two of the deals fell through and personally participated in the sale of the third property to someone else, but refused to refund the deposits to the victims.
If convicted, Scott faces a statutory maximum sentence for wire fraud of 20 years in prison, five years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. The case is being prosecuted by Victor A. Wild and Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Police Officer from Oklahoma Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
ALBUQUERQUE – Robert Mullen, 60, a former officer with the Lawton, Okla., Police Department who now resides in Albuquerque, N.M., pleaded guilty this morning to distribution and possession of visual depictions of minors engaged in sexually explicit conduct.
Mullen was arrested on Dec. 17, 2013, by Special Agents of Homeland Security Investigations (HSI) on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. On Jan. 15, 2014, Mullen was indicted and charged with distribution of child pornography and possession of child pornography. The indictment alleged that Mullen committed these two offenses between Aug. 2013 and Dec. 2013, in Bernalillo County, N.M. During today’s proceedings, Mullen entered a guilty plea to both counts of the indictment
According to court filings, in Aug. 2013, a special agent with the New Mexico Attorney General’s Office (NMAGO) identified an IP address that was being used to share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Mullen at a residential address in west side of Albuquerque.On Dec. 11, 2013, HSI, the Albuquerque Police Department (APD) and other agencies participating in the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a state search warrant at the residence and seized a computer and computer-related media. A preliminary forensic examination of a computer taken from a bedroom used by Mullen recovered images and videos consistent with child pornography.
Mullen has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Mullen faces a federal prison sentence of not less than five years and not more than 20 years. Mullen will be required to register as a sex offender after he completes his prison sentence.
This case was investigated by the Albuquerque office of HSI, the NMAGO, APD and other agencies affiliated with the New Mexico ICAC Task Force. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga 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/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former JCCEO Executive Director Sentenced to Two Years in Prison for Stealing from Non-profit Community AgencyRead the Press Release
BIRMINGHAM – U.S. District Judge L. Scott Coogler today sentenced the former executive director of the Jefferson County Committee for Economic Opportunity to two years in prison for stealing close to $500,000 from the non-profit organization, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
RUTH GAYLE CUNNINGHAM, 64, was executive director of JCCEO for more than 20 years before resigning the job last March. She pleaded guilty in September to theft from a government program that received more than $10,000 in federal funding or assistance. Her daughter, Kelli E. Caulfield, 31, pleaded guilty last year to conspiring with her mother to defraud JCCEO. Cunningham paid $492,195 in restitution to JCCEO, which was part of her plea agreement with the government, before today's sentencing. She must report to prison April 28.
JCCEO is a community action agency that administers programs, including Head Start, for low-income and disadvantaged residents. Between late 2008 and April 2010, while Cunningham and her daughter were running fake invoices through the agency and using agency funds to pay mortgages on personal investment properties, JCCEO was paying Cunningham a salary of as much as $150,000, plus bonuses, benefits and retirement contributions.
"At the same time Cunningham was being showered with accolades, benefits, and praise for her work at the JCCEO, she was stealing funds which could have been used for community programs," the government said in its sentencing memorandum.
"Gayle Cunningham was able to steal money intended to help some of the most vulnerable members of our community because she traded on her long tenure at JCCEO to receive broad discretionary powers from its board," Vance said. "She and her daughter exploited that authority to steal nearly a half million dollars from the agency. As a result, training programs lagged, Head Start buses were not replaced, and classroom computers were running on obsolete, unsupported operating systems," she said. "Prison is deserved for this type of abuse of trust and misuse of federal funds."
"Today's sentence should send the message that regardless of who you are or the position that you hold, you cannot abuse the public trust and steal federal funds," Schwein said. "The public can expect that the FBI will continue to aggressively investigate public corruption at all levels."
According to court records, Cunningham used JCCEO funds in 2009 and 2010 to make monthly mortgage payments on at least three residential properties she owned, and at least five residential properties her daughter owned, in Jefferson and Shelby counties. Cunningham also used JCCEO funds to pay property taxes on one of those properties, a house in Chelsea that she bought in 2007 with a mortgage loan of more than $1 million.
Cunningham also paid $293,413 in JCCEO funds to companies her daughter owned, and to other contractors, for claimed repairs or renovations to the women's properties. Caulfield created the invoices for repair services that never were performed, and she disguised her ownership in many of the companies, according to the government's sentencing memorandum. The checks were drawn from the JCCEO operating account and allocated to the agency's Housing Revitalization Program.
Caulfield crafted the invoices for amounts less than $5,000 to prevent the need for a second signature by a member of the JCCEO board. As executive director, her mother had check-signing authority up to $5,000.
The FBI discovered the fraud at JCCEO while investigating allegations of a mortgage fraud scheme. That investigation led to federal prosecutors' charges against Cunningham and Caulfield, as well as to charges against a real estate investor and a mortgage broker of conspiracy to defraud federally insured financial institutions. Cunningham and Caulfield bought most of the properties that later became part of their scheme to defraud JCCEO from the investor, Robert Paul Hollman.
Hollman pleaded guilty in September and is scheduled for sentencing April 2.
The government's sentencing memorandum argues that Cunningham and Caulfield have "improperly characterized themselves as victims in the real estate transactions with Hollman." Cunningham has a history of buying real estate and, on all the purchases from Hollman, the loan applications and mortgage documents show Cunningham and her daughter signed and willingly entered the contracts, the memo states.
It also challenges a claim in Cunningham's own sentencing memorandum that, during meetings she had with JCCEO Board Chairman T.L. Lewis, it was suggested she use the agency's Housing Revitalization Program funds to pay her personal mortgages.
Lewis told investigating agents that Cunningham and Caulfield never were authorized to use JCCEO money to pay personal mortgages.
"Cunningham's statement that she had approval from the chairman of the board is a completely self-serving statement that is unsupported by the evidence," the government memorandum states. "These attempts by Cunningham to legitimize her actions and mitigate the need for a custodial sentence by pointing the finger at Dr. Lewis are contrary to the facts and evidence and furthermore are contrary to her acceptance of responsibility," it states.
The FBI investigated the case. Assistant U.S. Attorney Robin Beardsley Mark is prosecuting the case.Former Eldersburg Postal Worker Guilty of Falsely Claiming Injuries to Obtain Federal Worker’s Compensation BenefitsRead the Press Release
False Disability Claims Exposed by Diligent Investigators
Baltimore, Maryland – Christopher Michael O’Brien, age 40, of Eldersburg, Maryland pleaded guilty today to making false statements to obtain federal employee’s compensation.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General (USPS-OIG ), Capital Metro Area Field Office.“Diligent federal agents brought Christopher O’Brien’s long-running disability scam to an end by following him on several occasions to determine that his injury claims were fraudulent,” said U.S. Attorney Rod J. Rosenstein. “Government employees who make false disability claims must be held accountable for defrauding taxpayers.”
According to his plea agreement, from 1998 through 2014, O’Brien worked for the U.S. Postal Service as a letter carrier. On March 25, 2008, O’Brien signed a form stating that he had injured his lower back when picking up a tub containing mail at the Derwood Branch of the Rockville, Maryland post office where he worked as a carrier technician. From that date through November 2013, O’Brien received over $212,420.12 in lost wages benefits from the alleged injury. During this period, O’Brien represented that he was unable to perform household chores, such as lawn maintenance, or resume full duty work due to severe pain and physical limitations resulting from his injury. Medical documents submitted to the Labor Department by physicians and medical professionals treating O’Brien’s injury indicated that he wore a back brace, used a cane, consistently limped and complained of persistent pain during medical examinations.From May 2012 through August 2013, USPS-OIG agents periodically observed and video recorded O’Brien walking briskly; jogging; bending; twisting; kneeling; squatting; lifting items weighing over 100 pounds; driving family members; performing household chores and yard maintenance, such as dog walking, pushing/pulling and turning a lawn mower, carrying and operating a weed line trimmer, carrying and operating a leaf blower; and regularly using dumbbells, barbells, stationary cycles and treadmills at a gym located in Eldersburg. During this time, except for the interview on July 30, 2013 described below, agents did not observe O’Brien wearing a back brace or using a cane.
The Postal Service periodically contacts claimants concerning their capability to return to full or limited duty. On July 30, 2013, O’Brien was interviewed at the Baltimore Post Office. Prior to the interview, agents saw O’Brien walking with no apparent disability from his house to his vehicle parked in front of his house, and driving to the interview. When O’Brien arrived at the post office, agents saw him walk slowly with a limp as he entered the building. O’Brien completed a form in which he maintained that he could not kneel, squat, climb and bend, and that he could not stand and walk for more than 10 minutes and could not sit for more than 15 minutes.
During the interview, O’Brien said that: he wears a back brace all the time when outside of his house; his wife drove him to the interview; he does not go to a gym; he has not lifted more than 15 pounds; he cannot twist or bend at the waist; and he needs to hold onto something when squatting to lift an object from the floor. O’Brien further stated he has difficulty walking, does not jog, does not usually walk the dog, does no lawn work, cannot push a mower and does not operate a power trimmer.
Following the interview, O’Brien was observed walking slowly with a limp from the post office to his vehicle, and driving away. Agents later observed O’Brien park in front of his house and walk into his home without a limp, carrying a back brace in his hand. On the day before and after the interview, agents saw O’Brien exercising at his gym, lifting dumbbells and walking on the treadmill.
On November 7, 2013, O’Brien admitted to USPS-OIG agents during an interview that he has not needed a cane since March 2010 and has not used a back brace when driving, exercising at the gym and performing yard work. O’Brien further admitted that he could have returned to work at the Postal Service in some capacity in March 2010 and that he misled his treating physicians and medical professionals in order to avoid returning to work.
The loss suffered by the Postal Service from May 2012 through November 2013 by O’Brien’s false statements is $80,647.25.
O’Brien and the government have agreed that if the Court accepts the plea agreement O’Brien will be sentenced to six months in prison and six months of home detention as a condition of supervised release. O’Brien also agrees to pay restitution of $80,647.25, and to resign from employment, and not to seek future employment, with the U.S. Postal Service. U.S. District Judge Richard D. Bennett scheduled sentencing for May 15, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service OIG for its work in the investigation and thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.Former Bank Teller Convicted of “inside Job” in Three Bank RobberiesRead the Press Release
PHOENIX –Joel Leon Thomas, Jr., 23, of El Mirage, Ariz., was found guilty of three counts of conspiracy to commit bank robbery, two counts of aid and abet armed bank robbery, one count of aid and abet bank robbery, and two counts of using a firearm in furtherance of a crime of violence by a federal jury in Phoenix. The case was tried before U.S. District Judge David G. Campbell from March 12-24, 2014. Thomas is being held in custody after trial. Sentencing is set before Judge Campbell on July 7, 2014.
The evidence at trial showed that Thomas, a bank teller at the time of the robberies, provided inside information to his co-conspirators about bank security measures and bank layouts to craft plans to rob three banks in January – February 2012. The conspiracy targeted banks Thomas worked at in the Surprise, Sun City, and Peoria areas. Thomas orchestrated two bank robberies at gunpoint, and in one of those robberies, he posed as a victim bank teller as he loaded $246,000 from the vault into a duffel bag for the armed gunman, his friend. In a third bank robbery, the conspiracy recruited two homeless men to commit a “note job” where they demanded money from a victim bank teller inside a busy grocery store and turned over the money to Thomas and other conspirators. After obtaining search warrants, police seized approximately $150,000 in stolen bank money, firearms, ammunition, bank robbery demand notes, and a hand-drawn diagram of a bank from the residences and cars of Thomas and others charged in the conspiracy. Five others were charged and pleaded guilty in the conspiracy.
The jury specifically found that in two of the bank robberies, a co-conspirator moved a victim bank employee against his consent, and that the co-conspirator brandished guns during the robbery.
A conviction for conspiracy to commit bank robbery carries a maximum penalty of five years, a $250,000 fine or both. A conviction for aid and abet armed bank robbery carries a minimum penalty of 10 years and a maximum penalty of 25 years, a $250,000 fine, or both. A conviction for aid and abet bank robbery carries a maximum penalty of 20 years, a $250,000 fine, or both. A first conviction for use of a firearm in furtherance of a crime of violence contains a minimum penalty of seven years in prison to a maximum penalty of life in prison, and a second conviction carries a minimum penalty of 25 years to a maximum penalty of life in prison, and both must be served consecutively to any prison term Thomas receives for the other crimes.
The investigation in this case was conducted by the Federal Bureau of Investigation and the FBI’s Bank Robbery Task Force, the Peoria Police Department, the Surprise Police Department, and the Tempe Police Department. The prosecution was handled by Jennifer E. Green and Tracy Van Buskirk, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-00523-002-PHX-DGC
RELEASE NUMBER: 2014-018_ThomasFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Former Albuquerque Police Department Officer Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Nelson Begay, 32, of Albuquerque, N.M., pleaded guilty today to a receipt of visual depictions of minors engaged in sexually explicit conduct charge. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and New Mexico Attorney General Gary K. King.
Begay was arrested on Nov. 13, 2013, on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. Shortly before his arrest, Begay resigned from his position as an officer of the Albuquerque Police Department.
On Dec. 4, 2013, Begay was indicted and charged with two counts of receipt of child pornography and one count of possession of child pornography. The indictment alleged that Begay received child pornography in Nov. 2012 and April 2013, and that he possessed child pornography in Nov. 2013, in Bernalillo County, N.M.
According to court filings, in Sept. 2013, a special agent with the New Mexico Attorney General’s Office (NMAGO) identified an IP address that was being used share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Begay at a residential address in northeast Albuquerque.
Court records reflect that on Nov. 7, 2013, HSI and other agencies participating in the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a federal search warrant at Begay’s residence and seized computers and computer-related media. A forensic examination of a laptop computer taken from a bedroom used by Begay recovered images consistent with child pornography.
During today’s hearing, Begay entered a guilty plea to count 1 of the indictment charging him with receipt of child pornography. In his plea agreement, Begay admitted that on Nov. 1, 2012, he used file-sharing software to download and share child pornography, including a video that was almost 30 minutes in duration that was a compilation of many video clips of minors performing various sexual acts.
Begay has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Begay faces a maximum federal prison sentence of not less than five years and not more than 20 years. Under the terms of his plea agreement, Begay will be required to pay $1000 in restitution to one of the victims whose image appears in the aforementioned video. Begay also will be required to register as a sex offender after he completes his prison sentence.
This case was investigated by the Albuquerque office of HSI, the NMAGO, and other members of the New Mexico ICAC Task Force, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard 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/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
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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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
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, 2315
Five years in prison
Three years supervised release
$250,000 fine
$100 special assessment18 U.S.C. § § 371, 2315, 2342(a), 2344
Five 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, 2
Twenty 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.
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.