St. Thomas, USVI – Kelley Hansen, 28, of California, was sentenced today before District Court Judge Curtis V. Gomez, to 2 ½ months incarceration for possession of marijuana with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced. He was credited by the court for time he had served in custody, pending his sentencing. Judge Gomez also sentenced Hansen to 2 years of supervised released, 200 hours of community service, and a $100 special assessment.

According to the plea agreement, Hansen travelled from California to St. Thomas with the intention of distributing marijuana. Hansen arrived on St. Thomas onboard a commercial airline with approximately two kilograms of marijuana. He was apprehended at the Cyril E. King Airport with the drugs.

The case was investigated by the Drug Enforcement Administration (DEA) and the Department of Homeland Security U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.

ALEXANDRIA, Va. – A New York man pleaded guilty today to committing government contracting fraud.

According to court documents, Alter Stesel, aka Herman Stesel, aka Randy Stern, aka Henry Shtaiseel, 41, of Brooklyn, was a government contractor based in Brooklyn. Stesel and his company, A1 4 Electronics Inc., were placed in proposed debarment status by the U.S. Department of Homeland Security for providing counterfeit goods and for a history of failure to perform or unsatisfactory performance on contracts. After learning of his proposed debarment, Stesel created a new company called A1 Tech Pal, Inc., in order to continue obtaining government contracts, including contracts awarded by the General Services Administration and U.S. Department of State, despite his ineligibility due to his proposed debarment status. Stesel used a fake alias to falsely certify to the United States government that he was not currently proposed for debarment. A1 Tech Pal received approximately 37 contracts worth approximately $245,000 as a result of this false certification. Stesel later created another company called Pomegranate Office, Inc., and used another fake alias to falsely certify that he was not presently debarred, although by that time his debarment was in effect.  Pomegranate Office received approximately seven contracts worth approximately $60,000 as a result of this false certification.

Stesel pleaded guilty to six counts of wire fraud and faces a maximum penalty of 20 years in prison when sentenced on September 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Carol Fortine Ochoa, Inspector General, General Services Administration, and Steve A. Linick, Inspector General for the Department of State, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Grace L. Hill and Special Assistant U.S. Attorney Russell Carlberg are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-175.

Dante Starks, a close associate of former City of Opa Locka Commissioner Luis Santiago,pled guilty yesterday, before United States District Judge Jose E. Martinez,to charges arising from his participation in the long-running Opa Locka municipal corruption conspiracy and his failure to file federal income tax returns. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Starks pled guilty to a two-count Superseding Information.  Specifically, Starks pled guilty to conspiring to commit extortion under color of official right and federal programs bribery, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a), and to failing to file his 2015 federal income tax return, in violation of Title 26, United states Code, Section 7203.  Starks is scheduled to be sentenced on August 31, 2018, at 2:00 p.m. before Judge Martinez.

According to the court record, including the stipulated factual basis for the plea, Starks conspired with former Opa Locka City Commissioner Luis Santiago, former Opa Locka City Manager David Chiverton, and former Opa Locka Assistant Public Works Director Gregory Harris, to use the official positions and authority that Santiago, Chiverton, and Harris had with the City of Opa Locka to solicit, demand, and obtain personal payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their official dealings with the City of Opa Locka.

Although Starks was not an official or employee of the City of Opa Locka, he was closely associated with and had great influence over Santiago.  Starks also had, and exercised significant influence over, numerous other city officials and employees, including Chiverton and Harris, and he regularly used that significant influence to pressure and advise city officials and employees to take official actions on matters relating to occupational licenses, code enforcement citations and fines, liens, water service and billing, zoning, and city contracting.  Working together, Santiago and Starks solicited and obtained illegal payments from businesses and individuals in Opa Locka, and in exchange, Santiago would take official actions on their behalf, and Starks and Santiago would pressure and advise Chiverton, Harris, and other City of Opa Locka employees to take official actions on behalf of those businesses and individuals. 

In addition, Starks participated in a conspiracy with Santiago and others to receive bribes in exchange for ensuring that a particular company received a city contract.  In April 2015, Santiago and Starks met with Raul Sosa Sr. (“Sosa Sr.”), who agreed to pay them a $10,000 bribe to ensure that the company Sosa Sr. was associated with, referred to as the “Towing Company,” was selected as one of the companies receiving a city towing contract.  Over the next two months, Starks collected $10,000 in cash payments from Raul Sosa Jr. (“Sosa Jr.”), the Towing Company’s manager, and in exchange, Starks arranged for Opa Locka’s Purchasing Director to assemble and prepare the Towing Company’s bid package.  After this bid was submitted, Starks violated the city’s purchasing Cone of Silence by contacting a member of the city’s committee evaluating the towing bids and directing that individual to rank the Towing Company as the number one company.  To complete the illegal arrangement, at the June 24, 2015, City Commission meeting authorizing the award of the towing contracts, Santiago used his position as a City Commissioner to bring forward and vote in favor of the resolution authorizing the City Manager to enter into a city contract with the Towing Company.

Starks also willfully failed to file federal income tax returns for the tax years 2014, 2015 and 2016. 

Related cases arising from the Opa Locka corruption investigation are the following:

Santiago previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20971-CR).  Santiago was sentenced to 51 months in prison. 

Chiverton previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20596-CR).  Chiverton was sentenced to 38 months in prison.

Harris previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20589-CR-BLOOM).  Harris was the first defendant to plead guilty to charges arising from this investigation, and received a sentence of probation. 

Sosa Sr. and Sosa Jr. previously pled guilty to conspiracy to commit Federal programs bribery (Case No. 18-20256-CR).  They are pending sentencing in August 2018 before Judge Martinez. 

Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force and IRS-CI in this matter.  Mr. Greenberg thanked the Miami-Dade Police Department and Hialeah Police Department for their assistance.   This case is being prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Maurice Johnson.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov

CHARLESTON, W.Va. – A Charleston man caught selling methamphetamine in July 2017 pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Timothy Boggs, 21, entered his guilty plea to an indictment charging him with conspiracy to distribute five grams or more of methamphetamine.  Stuart praised the joint investigation conducted by the Drug Enforcement Administration, the Violent Crime and Drug Task Force West, and the Kanawha County Sheriff’s Department STOP Team.  

“Excellent teamwork by law enforcement resulted in the conviction of this meth dealer,” said United States Attorney Mike Stuart.  “We continue to address the resurgence of meth throughout southern West Virginia communities with aggressive prosecution.”

Boggs admitted that from at least June 2017 to September 2017, he distributed methamphetamine for Melody Legg in Kanawha County.  As part of the plea agreement, Boggs admitted to distributing approximately 13 grams of methamphetamine to a confidential informant in July 2017.   

Boggs faces at least 5 years but not more than 40 years in federal prison when he is sentenced on October 4, 2018.

The plea hearing was held before United States District Judge Joseph R. Goodwin.  Assistant United States Attorney Stephanie S. Taylor handled the prosecution.

The drug prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. 

Follow us on Twitter:SDWVNews

  
 
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Both defendants had  prior misdemeanor convictions for illegally entering the United States

BECKLEY, W.Va. –  Jeyson Francisco Sanchez-Castillo and Olvin Alexis Ramos-Diaz both were sentenced  to time served for the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart.   Sanchez-Castillo, 19, of  and Ramos-Diaz, 21, both of Honduras, pleaded guilty on May 2, 2018 and had been in custody since February 28, 2018—nearly four months of federal incarceration.  United States District Judge Irene C. Berger remanded both men for deportation proceedings as immigration authorities had placed a detainer on them.   United States Attorney Mike Stuart praised the work of Immigration and Customs Enforcement (ICE). 

“The revolving door must end,” said United States Attorney Mike Stuart.  “If we want a country, we must have a border.  If people want to come here, they should get in line and enter legally.  Otherwise, they can expect to be prosecuted and deported in every case.” 

On February 28, 2018,  both Sanchez-Castillo and Ramos-Diaz were arrested by ICE agents, who were conducting targeted law enforcement operations in the Beckley area.  Agents observed defendants leaving a home on their way to work to at a restaurant in Beckley, West Virginia.  After stopping the cars and confirming their identity, both men admitted they were not in the United States legally and were placed under arrest.  ICE agents submitted Sanchez-Castillo’s and Ramos-Diaz’s  fingerprints, forensically matching both of them to prior removals from the United States in 2017.  They both also forensically matched Texas misdemeanor convictions of Illegal Entry into the United States.  After being deported, Sanchez-Castillo and Ramos-Diaz both illegally reentered the United States without lawful permission from the Secretary of Homeland Security. Sanchez-Castillo and Ramos-Diaz are citizens of Honduras.

Assistant United States Attorney Erik S. Goes handled both prosecutions.

Follow us on Twitter: @SDWVNewsand @USAttyStuart 

 
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PENSACOLA, FLORIDA– Elvin Castron-Murcia, 19, a Honduran native residing between Louisiana and Tennessee, was arraigned today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with traveling for illicit sexual conduct, transportation of a minor for criminal sexual activity, and false claim of U.S. citizenship.  The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.

The indictment alleges that, in May 2018, Castron-Murcia traveled for the purpose of engaging in illicit sexual conduct and also transported a minor under age 18 for sexual activity.  The indictment further alleges that, on May 25, 2018, Castron-Murcia falsely represented himself to be a U.S. citizen.

The defendant was detained pending trial.  The trial date is scheduled for August 7, 2018, at 8:00 a.m. at the U.S. Courthouse in Pensacola.

If convicted, Castron-Murcia faces a maximum of 30 years in prison for the sex traveling charge, a minimum of 10 years and a maximum of life in prison for the sex transportation charge, and a maximum of 3 years in prison for the false claim of U.S. citizenship.

The case is being investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Alabama Law Enforcement Agency, and the United States Immigration and Customs Enforcement Homeland Security Investigations.  The case is being prosecuted by Assistant United States Attorney David Goldberg.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt.  All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

PEORIA, Ill. – A federal indictment unsealed today charges 15 alleged members of the Peoria street gang Bomb Squad with organized violent gang activity including murder and attempted murder. The indictment alleges that those charged are participants in a racketeering conspiracy that has committed numerous shootings and acts of violence, including the April 8, 2018, murder of a rival gang member and a bystander, a Bradley University student.

U.S. Attorney John E. Childress; ATF Resident Agent in Charge Tom Dart, Springfield Field Office; Peoria Interim Chief of Police Loren Marion III; DEA Assistant Special Agent in Charge Glenn Haas, Chicago Field Division; Peoria County State’s Attorney Jerry Brady; and Peoria Mayor Jim Ardis made the announcement.

The indictment charges the defendants with federal racketeering conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO). Under the RICO statute, the indictment alleges that from 2013 to the present, the defendants functioned as a criminal enterprise to achieve its objectives, including activities that affect interstate commerce. Members and associates of Bomb Squad allegedly engaged in acts of violence, including murder, attempted murder, assault with a dangerous weapon, arson, and drug trafficking. The enterprise used violence to protect itself, its members and associates from rival gangs and to protect the standing and reputation of Bomb Squad.

All of the 15 defendants named in the indictment are charged with one count of RICO conspiracy, an offense which carries a statutory penalty of up to life in prison, if convicted. Those charged include: Eugene Haywood, aka “Nunu,” 24; Raevaughn Rogers, aka “Lil Poppi,” 18; Kenwan Crowe, 19; Terry Moss, aka “Lil Man,” 23; Ezra Johnson, aka “Lil Wody,” 22; Jovan McCree, aka “Vano,” 36; Jahlin Wilson, aka “BD,” 21; Andre Neal-Ford, aka “Monkey Man,” 20; Lance Washington, 22; Torieuanno White, aka “T.A.,” 24; Sherman Williams, aka “Shady,” 26; Lloyd Dotson, 27; Keith Gregory, aka “Kilo,” 19; Mytrez Flora, aka “Trez,” 24; and Kentrevion Watkins, aka “Tutu,” 19.   

Twelve of the defendants are also charged with one or more counts of Violent Crimes in Aid of Racketeering (VICAR) that include assault with a dangerous weapon and attempted murder, and with using firearms during the commission of a violent crime. In addition, the indictment includes charges of drug trafficking in marijuana, crack cocaine, and heroin, and possession of firearms by felons.

To further the conspiracy and achieve its objectives, the indictment alleges 46 overt acts in which gang members and associates engaged in murder, drug trafficking, witness tampering, arson, and robbery. Included among the overt acts alleged are the following:

• June 23, 2013, Haywood murdered Eric “Greedy” Brown, who he believed to be a rival gang member;
• July 15, 2013, Haywood, Flora, Dotson and deceased Bomb Squad leader Raheem Wilson, aka “Boosie,” conspired to shoot and murder Tyrann Chester, whom they believed to be supplying drugs to a dealer operating independently of Bomb Squad in Bomb Squad territory;
• May 12, 2016, Wilson robbed and shot unnamed victim during a dice game because he believed the victim was dealing drugs in Bomb Squad territory and not sharing the proceeds;
• June 13, 2016, McCree shot a .308 caliber rifle at a car he believed was occupied by rival gang members driving on Arago Street, in Bomb Squad territory. One of the bullets passed through the wall of a residence and struck an 11-year-old girl in the leg as she slept on a couch;
• Feb. 12, 2017, Moss attempted to set fire to the home of an individual he believed to be a rival gang member, in retaliation for the murder of deceased Bomb Squad leader Raheem Wilson, aka “Boosie;”
• Aug. 9, 2017, Williams, Crowe and other Bomb Squad members burglarized a house and stole a safe containing 12 guns which were then distributed to other Bomb Squad members;
• April 4, 2018, Johnson attempted to persuade a witness from testifying in a trial wherein Haywood is charged with shooting an individual with a firearm. When the witness refused to accept a bribe, Johnson threatened the witness;
• April 8, 2018, Watkins provided a juvenile Bomb Squad member with Crowe’s handgun which the juvenile then allegedly used to shoot and kill Anthony Polnitz and Nasjay Murry.

The indictment was returned by the grand jury on June 20, and sealed pending today’s arrests. ATF agents were assisted by the U.S. Marshals Service to make the arrests. Those arrested this morning are expected to make their respective initial appearances in federal court this afternoon. Five of the defendants already in state custody, in Peoria county for state cases or serving a sentence at the Illinois Department of Corrections, are expected to appear in federal court for their initial appearances later this week and early next week.

Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.

The charges are the result of an ongoing investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a partnership of federal, state and local law enforcement agencies working together to identify, disrupt and dismantle drug trafficking organizations and violent street gangs.

Law enforcement agencies conducting the investigation include ATF, the Peoria Police Department, and DEA, in coordination with the Office of Peoria County State’s Attorney Jerry Brady. Assistant U.S. Attorney Ron Hanna is coordinating the investigation and prosecuting the case on behalf of the government in the Peoria Division, Central District of Illinois.

In addition, this case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The program was reinvigorated in 2017 as part of the Department of Justice’s renewed focus on targeting each community’s most violent criminals.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of JOEL DAVIS on charges of enticement of a minor to engage in sexual activity, attempted sexual exploitation of a minor, and possession, receipt, and distribution of child pornography.  DAVIS was arrested today and will be presented today in Manhattan federal court before the Honorable Kevin N. Fox.

U.S. Attorney Geoffrey S. Berman said:  “Joel Davis started an organization devoted to stopping sexual violence, while allegedly engaged in the duplicitous behavior of sharing explicit images of infants engaged in sexual activity.  Davis also allegedly solicited an undercover officer – whom he thought to be a willing participant – to send sexually explicit videos of his nine-year-old daughter, and even to set up a sexual encounter between himself and a two-year-old.  The conduct alleged against Joel Davis is as unfathomable as it is sickening, and as this case demonstrates, law enforcement will keep its watchful eye on the darkest corners of the internet to bring predators to justice.” 

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “Having started an organization that pushed for the end of sexual violence, Davis displayed the highest degree of hypocrisy by his alleged attempts to sexually exploit multiple minors. As if this wasn’t repulsive enough, Davis allegedly possessed and distributed utterly explicit images of innocent infants and toddlers being sexually abused by adults. Crimes against children such as those alleged are taken very seriously by the FBI, and we continue to work tirelessly to investigate those who place the most helpless members of the American public at risk.”

According to the allegations in the Complaint sworn out today in Manhattan federal court and statements made during court proceedings:^[1]

Over the course of several weeks in June 2018, DAVIS, who started an organization devoted to ending sexual violence, exchanged text messages with law enforcement officers operating in an undercover capacity.  During the course of these conversations, DAVIS told the undercover officers that he was sexually interested in children of all ages.  DAVIS sent the undercover officers sexually explicit photographs of infants and toddlers, including photographs in which the infants and toddlers were engaged in sexual activity with adults.  During the course of text conversations with one of the undercover officers, DAVIS described explicit sexual activity that he intended to engage in with the purported nine-year-old daughter of the undercover officer and with the purported two-year-old daughter of the undercover officer’s girlfriend.  DAVIS also repeatedly asked that undercover officer to take naked and sexually explicit pictures and videos of his purported daughter and his purported girlfriend’s toddler daughter and to send the pictures and videos to DAVIS. 

*                      *                     *

DAVIS, 22, of Manhattan, New York, is charged with one count of enticement of a minor under the age of 18 to engage in sexual activity, which carries a mandatory minimum term of 10 years in prison and a maximum of life in prison; one count of attempted sexual exploitation of a minor, which carries a mandatory minimum term of 15 years in prison and a maximum of 30 years in prison; one count of possession of child pornography, which carries a mandatory minimum term of 5 years in prison and a maximum of 20 years in prison; and one count of receipt and distribution of child pornography, which carries a maximum term of imprisonment of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorney Juliana N. Murray is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Baltimore, Maryland – A federal grand jury has indicted Ryan Farace, age 34, of Reisterstown, Maryland, and Robert Swain, age 34, of Freeland, Maryland, on charges related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.”  The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds.  The superseding indictment was returned on February 22, 2018, and unsealed on June 22, 2018.faraceryan.swainrobertssindictment.pdf

The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don Hibbert of the Drug Enforcement Administration-Washington; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service – Washington Division; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service (IRS) – Criminal Investigation; Maryland U.S. Marshal Johnny Hughes; and Chief Terrence B. Sheridan of the Baltimore County Police Department.

According to the six-count indictment, from no later than November 2013 through June 2017, Farace purchased narcotics manufacturing equipment, including pill presses and counterfeit “Xanax” pill molds, which he used to press loose alprazolam powder into tablet or pill form, and which he intended to resemble legitimate Xanax pills.  The indictment alleges that Farace solicited orders for the alprazolam pills on dark web marketplaces and sold alprazolam pills directly to buyers in exchange for Bitcoin.  Farace allegedly communicated with his customers through encrypted electronic messages and shipped the completed pill orders through the U.S. Postal Service.  According to the indictment, postage for these packages was often paid using pre-paid debit cards that Farace obtained in the names of, and with the personal identifying information of, other people.  The indictment alleges that between May 10, 2016 and January 31, 2017, Farace distributed and possessed with the intent to distribute more than 6,900 alprazolam pills.

Further, the indictment alleges that Farace and Swain laundered the proceeds of the illegal drug sales by conducting financial transactions designed to conceal and disguise the nature, source, ownership and control of the illegal drug proceeds.  To date, law enforcement has seized assets from the defendants and their co-conspirators valued at over $22 million at the time of the seizures, including approximately $17 million in Bitcoin and other cryptocurrencies, $2.5 million in computer equipment, and more than $1.5 million in cash.

As part of the indictment, the government seeks the forfeiture of no less than $5,665,000, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and two vehicles used to facilitate the drug distribution.

Farace faces a maximum sentence of five years in prison for conspiracy to manufacture, distribute, and possess with the intent to distribute alprazolam; five years in prison for each of three counts of distributing and possessing with intent to distribute alprazolam; and 20 years in prison for maintaining drug-involved premises.  Farace and Swain face a maximum of 20 years in prison for money laundering conspiracy.  An arraignment on the superseding indictment has been scheduled for July 13, 2018, in U.S. District Court in Baltimore.  Farace is currently detained and Swain is released under the supervision of U.S. Pretrial Services.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. 

This case was part of Operation Dark Gold, a year-long, coordinated national operation involving the collective participation of the Department of Homeland Security, the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division, the United States Secret Service, the United States Postal Inspection Service, the Drug Enforcement Administration, and 51 United States Attorney’s Offices, which used the first nationwide undercover action to target vendors of illicit goods on the darknet. Since its inception more than one year ago, Operation Dark Gold has led to the opening of more than 90 active cases around the country.  Numerous individuals have been arrested and charged, and the operation has resulted in the seizure of weapons, drugs, virtual currency proceeds, United States currency, and computer equipment. https://www.justice.gov/opa/pr/first-nationwide-undercover-operation-targeting-darknet-vendors-results-arrests-more-35

United States Attorney Robert K. Hur commended the DEA, HSI, the U.S. Postal Inspection Service, the IRS-Criminal Investigation; the U.S. Marshals Service, and the Baltimore County Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Dana J. Brusca, Zachary B. Stendig, and Seema Mittal, who are prosecuting the case.

ALBUQUERQUE – Richard Fierro, 43, of Carlsbad, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 15 years of imprisonment for his conviction on kidnapping and firearms charges.  Fierro will be on supervised release for three years after completing his prison sentence.  U.S. Attorney John C. Anderson, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Shane Skinner of the Carlsbad Police Department (CPD) announced the sentence.

Fierro was prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution.  Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.

The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Fierro in Nov. 2016, on a criminal complaint charging him with violating the federal firearms laws on Oct. 28, 2016, in Carlsbad, in Eddy County, N.M.  According to the complaint, Fierro forced two children into his vehicle at gunpoint, crashed the vehicle, and attempted to flee the scene before CPD officers arrested him.  Officers found a firearm, ammunition, and marijuana in Fierro’s vehicle during a search incident to the arrest.

Fierro was indicted on Feb. 15, 2017, and was charged with kidnapping two victims, and with being a felon in possession of a firearm and ammunition on Oct. 28, 2016, in Eddy County.  According to the indictment, Fierro was prohibited from possessing firearms or ammunition because he previously had been convicted on cocaine trafficking, aggravated battery, possession of a firearm by a felon, and possession of cocaine base with intent to distribute.

On Oct. 17, 2017, Fierro pled guilty to the indictment.  In entering the guilty plea, Fierro admitted that on Oct. 28, 2016, he forced the two juveniles into his vehicle based on the belief that he needed to kidnap them in order to protect his daughter from harm.  He later realized that this was not true.  Fierro admitted driving around Carlsbad with the two kidnapped victims until he crashed into another vehicle and fled the scene.  Fierro also admitted possessing a firearm and ammunition during the kidnapping even though he was prohibited from possessing firearms and ammunition due to his status as a convicted felon. 

This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Carlsbad Police Department and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.

BOSTON – A former executive vice president of State Street Corporation was convicted today by a federal jury in Boston in connection with engaging in a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades. 

Ross McLellan, 47, of Hingham, Mass., was convicted of one count of conspiring to commit securities fraud and wire fraud, two counts of securities fraud and two counts of wire fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 10, 2018.

“Mr. McLellan defrauded State Street clients, violating his fiduciary duties and abusing his clients’ trust along the way,” said Andrew E. Lelling, United States Attorney for the District of Massachusetts. “With systematic precision, Mr. McLellan and his conspirators added secret commissions to securities trades and took steps to conceal the scheme. In doing so, beyond directly defrauding institutional investors, Mr. McLellan chipped away at the savings of thousands of retirees whose pensions he was supposed to safeguard. After only five hours of deliberations, a jury found Mr. McLellan guilty of five of six counts in the indictment.” 

“State Street’s clients, including institutional investors managing pensions for retirees, entrusted McLellan and his subordinates to transition billions of dollars in assets,” said Acting Assistant Attorney General John Cronan.  “Rather than living up to the responsibility to act in their clients’ best interests, McLellan and his coconspirators stole from these victims by charging hidden commissions and then lying about the scheme to cover their tracks.  This conviction is a testament to the dedication of the FBI and prosecutors in the Criminal Division and U.S. Attorney’s Office to protecting innocent investors by investigating and prosecuting complex financial crimes.”

“Motivated by sheer greed, Mr. McLellan devised an elaborate bait and switch scheme to defraud State Street’s clients out of millions of dollars, and now he’s finally being held accountable for his actions,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office. “This case should serve as a warning to others, the FBI and our law enforcement partners will aggressively pursue and bring to justice those who undermine our financial markets.”

In April 2016, McLellan, a former executive vice president of State Street who served as global head of its Portfolio Solutions Group and president of its U.S. broker-dealer unit, was indicted with Edward Pennings, 47, of Surrey, England, a former senior managing director of State Street and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa. In June 2017, Pennings pleaded guilty and is scheduled to be sentenced on July 18, 2018. Also in June 2017, Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street, was charged separately and pleaded guilty in July 2017 to one count of conspiracy to commit securities fraud and wire fraud. Boomgaardt is scheduled to be sentenced on July 31, 2018.

Between February 2010 and September 2011, McLellan, Pennings, and Boomgaardt conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees the clients had agreed to pay the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions. McLellan, Pennings, and Boomgaardt took steps to hide the commissions from the clients and others within the bank, including by directing that the commissions not be broken out in post-trade reports. 

For example,

• In a telephone call in March 2010, Pennings instructed Boomgaardt not to talk about the plans to charge hidden commissions on one transaction “with anyone . . . because it’s not going to help our story. Don’t even share it with the rest of the team, to be honest.”
• In June 2010, McLellan and Boomgaardt requested that the bank’s traders provide them with the reported daily high and low prices of securities the bank had traded for the client so that they could determine the amount of the commissions to be applied to each security without attracting the client’s attention. 
• In March 2011, McLellan instructed a U.S. fixed income trader to charge a commission of one basis point (0.01%) of yield to each trade conducted for another client – notwithstanding that the written trading instructions for the transaction said to charge zero commissions – and subsequently instructed the trader to delete any reference to the commissions from the trading results he sent to the transition manager assigned to the project.

In June 2011, when one of the affected clients inquired about whether it had, in fact, been charged commissions in breach of its agreement with the bank, Pennings initially denied that any commissions had been charged. Later, at McLellan’s direction, Pennings acknowledged only that “inadvertent commissions” had been applied to securities traded in the United States, but did not disclose that they had, in fact, been intentionally charged in both the United States and in Europe. McLellan and Pennings sought to mislead the bank’s compliance staff into believing that the commissions had been charged in error and that the amount of the overcharges was limited to the commissions applied on U.S. securities.

The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. The charge of wire provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $ 5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Lelling, Acting Assistant Attorney General Cronan, and FBI SAC Shaw made the announcement today. Valuable assistance was provided by the Securities & Exchange Commission and the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Economic Crimes Unit and Trial Attorney William Johnston of the Criminal Division’s Fraud Section are prosecuting the case.

PHILADELPHIA - U.S. Attorney William M. McSwain announced today that the United States filed a civil complaint against John Paul Ryan and Mary Motz Ryan, a married couple in Bucks County, Pennsylvania, and a telemarketing company that they operate together, Scholars in Print. The civil complaint alleges that they violated the False Claims Act by shipping unordered textbooks to the Federal Bureau of Prisons and demanding payment. Also today, the government filed a joint motion asking the court to enter a stipulated order and consent judgment to resolve the matter. The proposed resolution will require the court’s approval before it takes effect.  

The government’s complaint alleges that Scholars and Print, acting through the Ryans, made unsolicited telemarketing calls to Bureau of Prisons facilities throughout the country in an attempt to sell textbooks for use in prison libraries. According to the complaint, most facilities said no, but Scholars in Print shipped textbooks anyway and then sent unpaid bills to collection agencies. When confronted, Scholars in Print allegedly stated that the facilities had ordered the textbooks during the telemarketing calls. The complaint alleges that those assertions were false. Other times, Scholars in Print allegedly offered to send the facilities a free sample, and then invoiced them—a classic bait and switch.

The complaint contains several examples of false claims. In one of them, a Bureau of Prisons official allegedly refused to purchase textbooks from Scholars in Print during an unsolicited telemarketing call. John Ryan allegedly hung up on him, prompting the official to email the company to confirm his refusal to order textbooks. A few weeks later, the company allegedly sent textbooks to the same official. During a subsequent call to report the delivery, Ryan allegedly described himself, falsely, as “Dr. Ryan, one of the volunteers here,” and falsely claimed to be “reading from a conversation” presumably documenting that the official had ordered the textbooks.

On another occasion, Ryan allegedly identified himself as Edward Teach—more famously known as Blackbeard, the eighteenth century pirate—and offered a free sample of textbooks to a prison psychologist. The complaint alleges that Ryan then invoiced the prison $331 for these “free” textbooks. According to the complaint, Ryan told investigators that he sometimes identified himself as Edward Teach during telemarketing calls because “you don’t want people to know your name.”

On still another occasion, Scholars in Print demanded that a prison facility pay $680.90 for textbooks that the facility did not order. This demand prompted the facility to send a letter asking the company to stop shipping books for review. Scholars in Print then sent the same facility additional books and an invoice demanding another $435.00.

If approved by the court, defendants will pay a civil penalty of $75,689 for submitting false claims. They will also refrain from marketing products to any federal agency through unsolicited communications or telemarketing.

“The False Claims Act is a powerful tool to stem the tide of fraud against the government, and the allegations in this complaint fall squarely in that category,” said U.S. Attorney William M. McSwain. “Those who try to cheat a federal agency out of taxpayer money will not get away with it, and this case demonstrates our Office is ready, willing, and able to put a stop to this kind of behavior.”

“The OIG is committed to investigating individuals who attempt to defraud taxpayers and the Bureau of Prisons. We will work tirelessly with our law enforcement partners to ensure those who try to cheat the system are held accountable,” stated Lewe F. Sessions, Special Agent-in-Charge of the U.S. Department of Justice Office of the Inspector General’s Fraud Detection Office.   

Assistant U.S. Attorney Michael S. Macko handled the case, which arose from an investigation led by the U.S. Department of Justice, Office of the Inspector General.

The allegations against the Ryans and Scholars in Print are allegations only and not findings of liability.

In San Antonio today, a federal judge sentenced San Antonio attorney and former District 19 Texas State Senator Carlos I. Uresti to 12 years in federal prison, announced U.S. Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge D. Richard Goss, San Antonio Field Office. 

In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Uresti pay $6,345,441 restitution and be placed on supervised release for a period of three years after completing his prison term. 

“As Judge Ezra said, this is a sad day for the community.  The judge imposed a just sentence of 12 years in prison that accounts for the fact that former Senator Uresti used his position of trust in the community to lure his victims to the fraudulent scheme at the heart of the case.  I hope that this sentence sends the message to others that this office will not tolerate such outrageous abuses of power,” stated U.S. Attorney Bash.

“Today's sentence sends a strong message to those who would defraud and harm others for their own personal gain,” said FBI Special Agent in Charge Combs. “As an elected official, this individual took advantage of his position and power to personally enrich himself at the expense of those who trusted him. It is imperative that all individuals, but especially those who hold elected office, do so with honesty and integrity. The public can have confidence that the defendant is being held accountable for the crimes of which he has been convicted.”

“Today's sentencing of former Texas Senator Carlos Uresti exemplifies IRS Criminal Investigation’s intense focus on rooting out corruption.” said IRS-CI Acting Special Agent in Charge Goss. “No matter what your profession, it is unacceptable to help yourself to other people’s money and violate their trust.  Honest taxpayers have been reassured today that no one is above the law.”

In February, a jury found Uresti and FourWinds Logistics, Inc., (FourWinds) consultant Gary L. Cain, guilty on all charges for their roles in a Ponzi scheme that defrauded investors out of millions of dollars.  Charges against Uresti included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, five substantive counts of wire fraud, two counts of securities fraud, one count of engaging in monetary transactions with property derived from specified unlawful activity, and one count of being an unregistered securities broker.  Charges against Cain included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering and seven counts of engaging in monetary transactions with property derived from specified unlawful activity.  Prior to jury selection, former FourWinds Chief Executive Officer Stanley P. Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering.

Evidence presented during trial revealed that from February 2014 to December 2015, the defendants developed an investment Ponzi scheme to buy and sell hydraulic fracturing (fracking) sand for oil production.  Evidence showed that the defendants made false statements and representations while soliciting investors in FourWinds.  Collected funds were then used to pay earlier investors and for personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes. 

Evidence also showed that Uresti recruited investors under false pretenses by lying about investing his own money in FourWinds as well as failing to disclose his receipt of a commission and a percentage of the profits resulting from investments in FourWinds.  Evidence also revealed that Uresti was not registered as a broker with the Securities and Exchange Commission (SEC).

Evidence and testimony also revealed that Uresti, Cain and Bates engaged in money laundering with the proceeds of wire fraud.

Cain and Bates remain on bond pending sentencing.  Cain is scheduled to be sentenced tomorrow at 1:30pm in front of Judge Ezra.  Bates is scheduled to be sentenced at 1:30pm on August 6, 2018, in front of Judge Ezra.  For each fraud related charge, the defendants face up to 20 years in federal prison upon conviction.  For each money laundering charge, the defendants face up to ten years in federal prison upon conviction. 

Uresti remains on bond awaiting a second federal trial on unrelated charges.  Uresti and Vernon C. Farthing, III, of Lubbock, TX, are charged by a federal grand jury indictment with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.  The indictment alleges that from January 2006 to September 2016, the defendants conspired with others to pay and accept bribes in order to secure a Reeves County Correctional Center medical services contract for Farthing’s company.  The indictment specifically alleges that Farthing paid Uresti $10,000 a month as a marketing consultant and that approximately half of that sum was then given to a Reeves County official for his support and vote to award the contract to Farthing’s company.  Upon conviction of the charges contained in this indictment, Uresti and Farthing face up to five years in federal prison for conspiracy to commit bribery and up to 20 years in federal prison for conspiracy to commit money laundering. Jury selection is scheduled for October 22, 2018, in San Antonio before Judge Ezra.

The FBI’s Public Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General.  Assistant U.S. Joseph E. Blackwell, William R. Harris, Mark Roomberg, Erica Giese and Sean O’Connell are prosecuting this case on behalf of the Government.   

ALBANY, NEW YORK – Corey J. White, aka “Stacks,” age 35, of Schenectady, New York, pled guilty today to conspiring to distribute heroin.

The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.

White admitted that between August 1, 2016 and May 10, 2017, he worked with another person to distribute heroin in Schenectady.  He also admitted that on May 11, 2017, he possessed, in his Schenectady residence, about 100 green-colored envelopes, each of which contained heroin packaged for sale, as well as 2 digital scales, drug packaging materials, and $4,462 in cash.

Sentencing is scheduled for October 25, 2018 before United States District Judge Mae A. D’Agostino.  White faces up to 30 years in prison, and a term of post-imprisonment supervised release of at least 6 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. 

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

U.S. Attorney Duane A. Evans announced that U. S. District Judge Nannette Jolivette Brown sentenced TOMMY WAYNE THOMPSON, age 32, of Labadieville, Louisiana, to 85-months imprisonment and four years of supervised release after THOMPSON pled guilty to conspiracy to distribute and possess with intent to distribute cocaine hydrochloride, distribution of 28 grams or more of cocaine base (“crack”), and being a felon in possession of a firearm.

According to court documents, between November 2012, and June 2013, Special Agents of the Drug Enforcement Administration, using undercover agents and confidential sources, made several purchases of cocaine hydrochloride and crack cocaine from THOMPSON in Labadieville, Louisiana.  In May 2013, agents obtained a wiretap of THOMPSON’S telephone and intercepted several telephone calls between THOMPSON and another individual, with whom THOMPSON discussed obtaining and purchasing drugs.  On June 6, 2013, agents executed search warrants at THOMPSON’S residence in Napoleonville, Louisiana and a second residence frequented by THOMPSON in Labadieville.  In the Napoleonville residence, agents located and seized a Lorcin 9mm handgun in a cabinet in the residence.  THOMPSON, who had previously been convicted of a felony, was prohibited from possessing a firearm.  In that same residence, agents seized $68,617.00 in cash from a utility room.  In the Labadieville residence, agents located and seized $5,500.00 in cash from the top of a refrigerator.  In THOMPSON’S vehicle located at the residence, agents found and seized a clear plastic bag containing cocaine hydrochloride.

            U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, and the Assumption Parish Sheriff’s Office Narcotics Division.  Assistant United States Attorney André Jones was in charge of the prosecution.

OKLAHOMA CITY –  DANIELLE DANA LAYMAN, 38, of Ponca City, Oklahoma,has been sentenced to 37 months in prison for possessing the toxin ricin, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.  

According to a complaint filed on July 1, 2017, Layman used craigslist to locate someone interested in a "10 day gig overseas."  On May 9, 2017, she met in Ponca City with a person who responded to the craigslist post.  According to the affidavit, Layman gave that person written instructions on traveling to Tel Aviv, Israel, and using ricin to poison a specific taxi driver in exchange for $4,000 plus expenses.  The affidavit states that Layman also gave the person a baggie that she claimed contained the ricin to be used in the murder.  Ricin is an extremely hazardous substance derived from castor beans.

On June 30, 2017, the FBI executed a search warrant at Layman’s residence in Ponca City and found castor beans in the kitchen.  The complaint alleges agents also found a mortar and pestle with residue that could be remnants of ground castor beans, along with instructions on how to make ricin.  Layman was arrested later that day.

On August 1, 2017, a grand jury indicted Layman on one count of using interstate communications with the intent to hire someone to commit murder.  On October 3, a grand jury returned a superseding indictment that added one count of possessing ricin without the required registration.

On February 8, 2018, Layman pleaded guilty to possessing ricin illegally.  The government agreed to dismiss the murder-for-hire count at sentencing.

At today’s sentencing, United States District Court Judge Robin J. Cauthron ordered Layman to serve 37 months in prison, the top of the advisory range under the U.S. Sentencing Guidelines.  The court noted that because she prepared ricin in her home, she put her own children at risk.  After release from prison, Layman will be under supervision for three years.

"Keeping citizens safe is a top priority for federal law enforcement.  I appreciate the FBI’s diligence in its thorough investigation of cases involving ricin and other substances that can be used as weapons," said Acting U.S. Attorney Troester.

This sentence is the result of an investigation by the FBI.  FBI Special Agent-in-Charge Kate Peterson said: "Through the careful and methodical investigation conducted by agents of the FBI Oklahoma City Division, we were able to show the true callous and malicious nature to Ms. Layman’s crimes."

This case was prosecuted by Assistant U.S. Attorneys Ashley L. Altshuler and David P. Petermann, with assistance from the National Security Division’s Counterterrorism Section.

Reference is made to court records for further information.

Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Keith R. Hudson, 70, from Charleston, South Carolina, pled guilty in federal court before United States District Court Judge Richard M. Gergel.  He had been indicted for defrauding the VA by receiving $197,237 in benefits after falsely claiming to be a military veteran of combat in Vietnam. This is a violation of Title 18, United States Code, § 1347(a)(1). He faces a potential ten year sentence.

Court documents presented during the hearing established that in 2015, Mr. Hudson applied to the VA in Charleston for benefits.  He used a falsified form from the Department of Defense, called a DD-214, (“Report of Separation from Active Duty”) which is a Department of Defense form given to members of the military who are separating from service.  In the form, he said that was a veteran of the war in Vietnam.  He represented that he was in the Navy and saw combat as a medic, suffering wounds and other trauma.  He claimed that he served from August 1, 1967 through October 31, 1971 and said that he received two Purple Hearts.

The investigation conducted by the Veterans Affairs Office of Inspector General (OIG) showed that this DD-214 was forged and false.  For instance, Mr. Hudson’s rank was listed as HN and E-4 (in the United States Navy, HN is actually the equivalent of E-3).  In the awards section, it stated that he received a Combat Medic Badge.  However, this is an award which is only given for service in the United States Army.  It also did not list the proper citation for a Purple Heart.   And the form stated Mr. Hudson received the Fleet Marine Force Medal with Marine Device.  There is no such medal.  It also had a stamp from the Alaska State Defense Force, which is suspicious as that group is not an official military organization, being comprised of volunteers.  Additionally, the service branches do not permit their records to be combined with or loaned to other entities, including National Guard units.  And, the typeset of the Social Security number on the DD-214 was different from the rest of the document.

In fact, Mr. Hudson never was in the military.  The investigation conclusively showed that there were no records in the National Personnel Records Center in St Louis, Missouri for him from any branch of service. 

Additionally, employment records for him from 1967 through 1971 established that he worked at a variety of jobs in New York and in Maine.  In two of them, he applied for employment and was fingerprinted.  These fingerprints were still on file and matched his prints.  As such, he was in the United States during the years 1967 through 1971.  Therefore, Mr. Hudson was never in the United States Navy nor did he ever see combat in Vietnam.

The investigation also showed that he had previously been prosecuted for the same scheme using the same DD-214 form in 2005 in Connecticut, where he had been placed in a pretrial diversionary program.   

United States Attorney Lydon said that these cases are very important for our country and for our community.  “This is a particularly awful type of white collar crime.  Veteran health benefits are for those who served our nation in the military.  The VA has limited numbers of physicians and resources.  There is not much to spare.  Every dollar and every minute of time stolen from the VA is something that is stolen from a veteran. VA fraud is on the increase and so we are grateful for the work of the Veterans Affairs Office of Inspector General for their investigative work on the case.”

Statistics bear out what the United States Attorney said.  Between April of 2017 and October of 2017 alone, the VA Office of Investigations made 80 arrests, and recovered $2.9 million in restitution, fines and penalties relating to things like VA health-care benefits fraud. This is more than twice the amount recovered in the same period a decade ago.

The Resident Agent in Charge for the IG in Asheville is G. Scott Bailey, who said “we aggressively investigate cases where individuals defraud the VA and take benefits meant for our nation’s veterans.”  He noted that the VA Office of Inspector General has a hotline, staffed weekdays between 8:30 a.m. .and 2 p.m. Eastern time, at 1-800-488-8244.  He said “If anyone has any knowledge of fraud going on at the VA, please call.  We’ll investigate.”

Assistant United States Attorney Sean Kittrell of the Charleston office prosecuted the case.

#####

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051

BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Alicia Raynor, 40, of Westfield, NY, was arrested and charged by criminal complaint with embezzlement. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.

Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that according to the complaint, in 2012, the defendant was hired by Compassion at Home, Inc. as the Business Manager. Between November 2012 and August 2015, the defendant had access to the payroll processing service of Compassion at Home, which was used to deposit pay directly into employee bank accounts. Raynor used the service to divert funds from the company's bank account to accounts under her control. In August 2015, the President of the company terminated the defendant for using company funds to pay personal expenses.

In the middle of 2016, the President noticed that, although Raynor was no longer employed by Compassion at Home and was no longer entitled to any payments from the company, numerous wire transfers were being sent from a company bank account to the defendant. Realizing that Raynor had maintained access to the payroll processing service, the President eliminated the defendant's access to the payment processing service, which ceased the wire transfers to Raynor.

Between September 24, 2015, and June 30, 2016, Alicia Raynor received 139 electronic funds transfers from the company bank account into bank accounts under her control. The transfers involved variations of the defendant's name, bank names, credit card names, and names of employees of Compassion at Home. Raynor is accused of embezzling a total of $227,000.                                   

The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.

The complaint is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

On June 21, 2018, a grand jury in Miami indicted three individuals for their alleged participation in an investment fraud scheme that targeted investors throughout the Nation, defrauding them out of approximately $2 million.  The main office operated out of Broward County, Florida. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Florida Office of Financial Regulation (OFR), West Palm Division, made the announcement.

Thomas Michael White,59, of Parkland, Florida, John Kevin Reech, 56, of Delray Beach, Florida, and Joseph Mario Genzone,53, of Boca Raton, Florida, were all charged with conspiracy to commit mail fraud and wire fraud, as well as substantive mail fraud charges.  In addition to those charges, Whitewas also charged with wire fraud.  The defendants had their initial appearances in U.S. Magistrate Court today.  

The indictment charges the defendants with participating in an alleged conspiracy involving the sale of stock and debt equity in First Call Ventures, LLC and its subsidiaries, all of which were owned and operated by Thomas Michael White.  According to the Indictment, from January 2012 to November 2014, the defendants solicited investors located throughout the United States to buy shares or ownership units in First Call Ventures, LLC and its subsidiaries, which included, First Call Auto Transport, Frist Call Freight and First Call List.

The indictment alleges that the defendants made materially false statements which included, but were not limited to, that First Call Ventures would provide a “safe and profitable investment” where “you won’t lose your money,” that investors would receive a guaranteed return on investments, that no fees would be charged to investors unless First Call Ventures turned a profit, that the value of the investment would increase significantly, that First Call Ventures was successful and profitable, and that investor funds would be used for sales and marketing, working capital and general corporate purposes.

In fact, over 80% of all First Call Ventures’ investor funds went to White for salaries, fees and other monetary distributions to himself, Reech, Genzone, and others.

Mr. Greenberg commended the investigative efforts of the FBI and the Florida Office of Financial Regulation, West Palm Division.  This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.

Individuals who believe that they may be a victim in this case should contact the FBI at www.fbi.gov for more information.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty in a court of law. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

       Montgomery, Ala. –  - James Calvin Talley, Jr., 37, of Verbena, Alabama, was sentenced to life in prison for possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute marijuana, using a phone to facilitate a drug crime, and being a felon in possession of a firearm, announced U.S. Attorney Louis Franklin.  Talley’s conviction for distribution of methamphetamine carried a mandatory life sentence because he had two prior felony drug convictions.  There is no parole in the federal system. 

       Evidence presented at trial showed that on December 3, 2016, a drug courier delivered more than 100 pounds of marijuana to Talley’s home in Verbena. When the courier arrived at Talley's home, he got out of the car and Talley drove the car alone to another house in Marbury, Alabama. There, Talley backed the car up to the front door of the house and opened the trunk. Law enforcement, who had knowledge of the drug delivery, followed Talley from his home to the house in Marbury.  Talley ran into the house when law enforcement arrived but was arrested as he was running out of the backdoor. Inside the house, which belonged to co-defendant Richie Dale Murphy, law enforcement officers found two pistols, more than 3 pounds of methamphetamine, over $20,000 in cash, marijuana, and drug paraphernalia used for packaging and selling narcotics.

       Following the search at Murphy's house, law enforcement searched Talley's home and found two more pistols, along with more than $50,000 in cash, a currency counter, drug ledgers and receipts for wire transfers of large amounts of money.

       Murphy, who previously pled guilty to possession with intent to distribute marijuana, possession with intent to distribute methamphetamine, and possessing a firearm in furtherance of a drug trafficking crime, testified at trial that he and Talley were in business together, and that Talley used Murphy's home as his stash house for marijuana and methamphetamine.  Murphy is facing at least 15 years in prison for his charges.  A date for his sentencing has not yet been set.

       The case was investigated by the Drug Enforcement Administration (DEA), the Autauga County Sheriff’s Office, and the Chilton County Sheriff’s Office. The Alabama Attorney General’s Office, Millbrook Police Department, Montgomery Police Department, and Prattville Police Department all assisted with this case. Assistant U.S. Attorneys John Geer and Kevin Davidson prosecuted the case.