U.S. Attorney Blader said, “PSN has been an invaluable tool in addressing violent crime within the Dane County area.  Dane County and surrounding areas have seen an increase in violent and gun-related crime, including bank robbery offenses.  By working closely with our state and local partners, we have been successful in holding many of these offenders accountable.”

Madison Police Chief Michael Koval stated, “Violent criminal acts threaten community safety and contribute to negative perceptions about the quality of life that we enjoy in the City of Madison.  Thankfully, we have a willing and robust collaboration with the U.S. Attorney’s Office, as well as a coordinated response with federal law enforcement agencies.  An aggressive, no nonsense approach has led to significant arrests and effective prosecutions which take criminal elements out of the fabric of our daily lives.  I am grateful for the partnerships we have forged and the bottom line results that are being achieved by PSN.”

Jessie Summers, Resident Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms and Explosives, stated, “ATF is proud to be a part of the Project Safe Neighborhoods program, working closely with the U.S. Attorney’s office and our state and local partners.  ATF is dedicated to taking violent criminals off the streets and working with state, local and federal partners under Project Safe Neighborhoods allows us to do just that.”

The FBI’s official crime data for 2017 reflects that in the first year of the Trump Administration the nationwide violent crime rate began to decline, after historic increases in 2015 and 2016.  The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.

The preliminary information for 2018 gives reason for optimism that PSN efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.

            The owner of Blue Moon Coins in Vancouver, Washington was indicted by the grand jury on 11 counts of wire fraud and five counts of mail fraud for his scheme to defraud customers of more than $1.3 million, announced U.S. Attorney Annette L. Hayes.  AARON MICHAEL SCOTT, 40, a resident of Portland, Oregon, is scheduled to be arraigned on the indictment in U.S. District Court in Tacoma at 10:30 on Thursday October 4, 2018.

            According to the indictment, between October 2013 and April 2014, SCOTT repeatedly accepted customer money for the purchase of precious metals and coins, and then used the money for his personal and company expenses.  SCOTT represented to customers that the money would be used to immediately purchase the coins and metals but instead it was used for expenses or to fulfill earlier customer orders in the form of a Ponzi scheme. When customers complained about the delay in receiving their items, SCOTT used a plethora of excuses such as: weather delays; a supplier had gone bankrupt; a corporate buyout; ice and snow; delayed armored truck delivery; and a bad flu season.

            In all more than 139 customers were defrauded of more than $1.3 million.  Losses to individual investors range from just over $2,000 to more than $154,000.

            Wire fraud and mail fraud are punishable by up to 20 years in prison.

            The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

          The case is being investigated by the FBI and the U.S. Commodities Futures Trading Commission (CFTC).   The CFTC has filed a civil enforcement action against SCOTT and Blue Moon Coins seeking restitution for the victims and a permanent registration and trading ban.

          The case is being prosecuted by Assistant United States Attorney David Reese Jennings.

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

BUFFALO, NY – U.S. Attorney James P. Kennedy, Jr. joined the Department of Justice in announcing more than $70,000,000 in grant funding to bolster school security, educate and train students and faculty, and support law enforcement officers and first responders who arrive on the scene of a school violence incident, including $500,000 for Erie 2-Chautauqua-Cattaraugus BOCES, $215,383 for Niagara County, and $150,000 for Wayne County in the Western District of New York.

These grants are in addition to the funding to the National Association of School Resource Officers (NASRO), announced by Attorney General Sessions last week, to expand and update their curriculum to better support training programs. These grants combined will better protect students, teachers, faculty, and first responders across the United States. Additionally, the Department is awarding more than $64,000,000 to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems, which will help law enforcement and increase the effectiveness of background checks.

“President Trump and his administration will ensure the safety of every American school," Attorney General Jeff Sessions said. "Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence. Today I am announcing $70,000,000 in these grants to hundreds of cities and states across America. These grants will go a long way toward giving young people and their families both safety and peace of mind.”

“With this announcement providing our District more than $865,000, the Department of Justice is doing more than simply denouncing school violence—it is providing resources to allow us to take measures to prevent it,” noted U.S. Attorney Kennedy. “Those measures include improved reporting and response systems, increased mental health intervention programs, and additional training and resources to harden targets. Through our Safe Schools initiative, this Office has long been a leader in the community in not only raising awareness of the causes and common characteristics of school violence, but in exploring ways to prevent it. These funds will only enhance that enduring commitment and effort.” 

The Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) and the Office of Community Oriented Policing Services (COPS Office) together are making more than 220 awards to jurisdictions across the country to help make schools more secure. The awards, granted through three funding streams, will provide new technology for reporting systems and other threat deterrent measures and create school safety training and education programs for school administrators, staff, students, and first responders. This includes the support for existing crisis intervention teams and the creation of new ones.

• BJA’s STOP School Violence Threat Assessment and Technology Reporting Program will provide 68 awards valued at more than $19,000,000. This funding supports training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website. Erie 2-Chautauqua-Cattaraugus BOCES will receive $250,000.
• The STOP School Violence Prevention and Mental Health Training Program, also managed by BJA, will provide training and education on preventing violence and effectively responding to related mental health crises. This program will fund 85 awards at nearly $28,000,000. Erie 2-Chautauqua-Cattaraugus BOCES will receive $250,000, and Wayne County will receive $150,000.
• The COPS Office School Violence Prevention Program (SVPP) will provide nearly $25,000,000 to 91 jurisdictions for school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency. Niagara County will receive $215,383.

The grants are authorized by the STOP School Violence Act, which are intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.

The Department also announced that it has awarded more than $64,000,000 to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems. These grants are administered by the Bureau of Justice Statistics, part of OJP. Approximately $43,000,000 in funding will be administered through the National Criminal History Improvement Program (NCHIP), and nearly $21,000,000 will be awarded under the National Instant Criminal Background Check System (NICS) Act Record Improvement Program.  These grant programs help states automate and upgrade records accessed by the firearms background check system.  This year, at the direction of the Attorney General, the Department prioritized funding for projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.

The Department is also investing over $1,000,000 in research to better understand the factors behind mass shooting incidents. The grant awards, made by the Department’s National Institute of Justice (NIJ), part of OJP, support scientific investigations that will examine factors that contribute to mass violence, identify any patterns in mass shootings, analyze psychological and social life histories of mass shooters and community-level predictors of mass violence, and will examine firearm purchasing patterns of known mass shooters in order to create a risk prediction tool. 

For more information on these grant announcements, visit www.bja.gov or www.cops.usdoj.gov.
 
# # # #

United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.

Garrett Alan Heck, age 23, was indicted on September 11, 2018.  He appeared before U.S. Magistrate Judge Mark A. Moreno on September 28, 2018, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

Heck was convicted of Aggravated Sexual Abuse in July 2012.  As a result of this conviction, he is required to register as a sex offender.  It is alleged that between April 27, 2018, and July 2018, Heck, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.

The charge is merely an accusation and Heck is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the U.S. Marshals Service.  Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.   

Heck was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

SACRAMENTO, Calif. — One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is a nationwide initiative that brings together federal, state, and local law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. The PSN strategy empowers each district to develop targeted, localized violent crime reduction strategies, tailoring solutions to each individual community. PSN has been proven to reduce violent crime since it was launched in 2001, and the revitalized version has been enhanced with new technologies and a redoubling of efforts to strengthen partnerships with local communities.

“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”

U.S. Attorney Scott stated: “Our office has a strong track record of working with our federal, state and local partners to prosecute cases aimed at reducing violent crime in our communities. We have developed a model that targets the most violent street gangs plaguing counties in our district, and we have focused on stemming the tide of illegal firearms flowing into our communities, prosecuting those who manufacture, distribute, and possess those weapons. We have deployed this strategy in the Counties of Fresno, Sacramento, San Joaquin, Shasta, Kern, Solano and Tulare, and we are working to spread this model throughout the district. Project Safe Neighborhoods is alive and well in the Eastern District of California.”

The U.S. Attorney’s Office works regularly with District Attorney’s Offices in Fresno, Sacramento, Kern, Stanislaus, Solano, and Tulare Counties, and partners with local law enforcement and federal agencies to target drivers of violence in those communities, including gang members and those who inject illegal firearms into the hands of criminals. This team collects and analyzes statistical and anecdotal data to refine the targeted use of pooled resources. Since the revitalization of PSN in October 2017, almost 200 defendants have been indicted federally for charges arising from PSN investigations. Sixty-four of those stemmed from investigations in Sacramento, Solano, Shasta, and San Joaquin Counties. In 2018, a total of 60 PSN defendants were sentenced to between two and 15 years in prison in the Eastern District of California.

Project Safe Neighborhoods has helped to reinvigorate existing partnerships in our district, which has a history of successful collaborations with local, state and federal law enforcement agencies. Those collaborations have resulted in several large-scale, long-term, multidefendant gang cases, with many arrests, guilty pleas, and sentencings occurring over the past year. Below are examples.

Operation Silent Night involved a coalition of local, state and federal law enforcement officers who conducted 69 searches at various locations throughout Northern California. Officers arrested 25 defendants on federal charges. In addition, local officials arrested more than 10 individuals on state charges. The investigation, led by the FBI, the California Department of Corrections and Rehabilitation, and the Woodland Police Department, focused on coordinated criminal activity that centered in Yolo County but extended to other Northern California counties and prisons. 

Three Stockton residents were charged with unlawful dealing in firearms in February 2018. One defendant allegedly sold 50 firearms, including machine guns, stolen firearms, firearms with obliterated serial numbers, and assault rifles manufactured from unfinished lower receivers with no serial numbers. At the time of his arrest, he possessed one handgun, eight machineguns, and five machine gun-conversion devices. Another allegedly manufactured and sold approximately 15 assault rifles. The third defendant allegedly sold eight firearms, including five assault rifles manufactured from unfinished lower receivers with no serial numbers. None of the defendants is licensed to deal in firearms.

A Grass Valley man was sentenced to five years in prison for unlawful manufacturing and dealing in firearms. He contacted a firearms vendor on the dark web seeking to sell AR-15-style “ghost” guns. Firearms without serial numbers are sometimes referred to as ghost guns. The firearms vendor was in fact an undercover agent. He manufactured and sold eight AR‑15‑style firearms without serial numbers to the undercover agent in exchange for payment in bitcoin.

A Vallejo man was sentenced to five years in prison for being a felon in possession a firearm. On July 26, 2017, officers executed a search warrant at Andrews’ home in Vallejo and at a hotel in Fairfield where. When officers arrived at the hotel parking lot, they confronted the defendant, who discarded a .40‑caliber semi-automatic handgun under a car. The gun was loaded with 12 rounds of ammunition, including seven rounds of hollow point ammunition. The defendant could not lawfully possess firearms because he has previously been convicted of felony offenses, including a January 2016 conviction in Solano County for assault with a firearm on a police officer.

Improvements to Community Safety

• The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately 1 percent in 2017, while the nationwide homicide rate decreased by nearly 1.5 percent.

• The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities, including Sacramento and Fresno, show that violent crime was down by nearly 5 percent in those cities in the first six months of 2018 compared to the same period a year ago.

These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.

NORFOLK, Va. – A Georgia man was sentenced today to over 15 years in prison for armed robbery of two banks and one credit union.

According to court documents, Marquis Larosa Buckley, 41, of Townsend, conducted an armed robbery of a Fulton Bank and a PNC Bank, both located in Virginia Beach. At the Fulton Bank, Buckley stole $973, and at the PNC Bank he stole $8404. During the PNC Bank robbery a teller secreted a GPS device within the money given to Buckley. The device allowed law enforcement to locate Buckley and his co-conspirator as they were driving away from the robbery. Buckley also conducted an armed robbery of SPE Federal Credit Union in State College, Pennsylvania, wherein they netted $7,177. During each of these robberies, Buckley used a fake bomb in addition to a firearm to enhance his threats and to serve as a diversion for law enforcement while he made his escape.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney William D. Muhr prosecuted 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. 2:18-cr-2.

United States Attorney Ron Parsons announced that three Lower Brule, South Dakota, individuals have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.

Shanna St. Cloud, age 20, Alisha Flute, a/k/a Alisha Pretty Sounding Flute, age 20, and Teresa Jandreau, age 39, were indicted on September 11, 2018.  Flute appeared on September 14, 2018, St. Cloud appeared on September 21, 2018, and Jandreau appeared on October 2, 2018, before U.S. Magistrate Judge Mark A. Moreno.  All three pled not guilty to the Indictment.

The maximum penalty upon conviction is up to life in prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each count.  Restitution may also be ordered. 

The Indictment alleges that between December 1, 2015, and September 11, 2018, St. Cloud, Flute, and Jandreau knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota. 

The charges are merely accusations and St. Cloud, Flute, and Jandreau are presumed innocent until and unless proven guilty. 

This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.   

St. Cloud was remanded to the custody of the U.S. Marshals Service pending trial.  Jandreau and Flute were released on bond pending trial.  A trial date is set for November 27, 2018.

NOTE: The Revised FY 2018 PSN Funding Allocation Amounts can be found here. 

 WASHINGTON – Attorney General Sessions today commemorated the reinvigoration of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  In support of the Department’s PSN programs throughout the country, the Attorney General also announced awards of almost $28 million in grant funding to combat violent crime through PSN and another $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime. Over the past year, the Department has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make American neighborhoods safer.

The Eastern District of Kentucky received $185,994 in grant funding to support PSN efforts. 

“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face.  Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”  

PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Through the enhanced PSN, the Department is targeting the most violent criminals in the most violent areas, utilizing policing tools that did not exist even a few years ago. Tools like crime gun intelligence centers (CGIC), which combine intelligence from gunshot detection systems, ballistics, gun tracing, and good old-fashioned police work, help to develop real-time leads on the “traffickers and trigger pullers” who are fueling the violence in their communities. By using modern technologies and cutting-edge police work, the Justice Department is deploying resources strategically to provide the greatest return on our community-based anti-violence efforts. 

United States Attorneys across the country are using powerful federal laws against the criminals driving the violent crime in their communities. In fiscal year 2018, the Department brought cases against more violent criminals than ever before—increasing by approximately 15 percent than the Department’s previous record set just last year. Additionally, in 2018 the Department set another record by charging approximately 20 percent more criminals with federal firearms offenses than it had in 2017, which is the most in the Department’s history. 

The Department has already started to observe positive signs of progress. The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent. The preliminary information for 2018 shows that the Department’s efforts are continuing to pay off. Public data from 60 major cities show that violent crime decreased by nearly five percent in those cities in the first six months of 2018 compared to the same period one year earlier. 

The grants announced today build on Attorney General Sessions’ commitment to reducing violent crime in America, as directed by President Trump’s February 2017 Executive Order. The Department has distributed additional resources and built up strong partnerships with local law enforcement in communities plagued by violent crime. Since the announcement of the reinvigoration of the PSN program in October 2017, the Department of Justice has increased the number of federal prosecutors focused on violent crime by over 300, directed its resources to improving cooperation between federal and local law enforcement agencies, restored local control of police agencies by reining in excessive use of consent decrees, reformed civil asset forfeiture and restored asset-sharing with state and local law enforcement, and helped fund over 800 hundred officers in police departments across America.

LEXINGTON, Ky.– One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Jeff Sessions has made the centerpiece of the Department’s violent crime reduction strategy.  PSN is an evidence-based program proven effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs.  I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face.  Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”  

Throughout the past year, the United States Attorney’s Office for the Eastern District of Kentucky has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make neighborhoods safer for everyone. 

In January 2018, federal, state, and local law enforcement agencies created the Fayette County Violent Crime Task Force.  The Task Force focuses investigative and prosecutorial resources on those individuals responsible for violent crime and significant drug trafficking in this area, particularly those who commit acts of violence while armed with a firearm and those who commit armed drug trafficking.  The Agencies participating in this effort include the ATF, DEA, FBI, Lexington Police Department, the Fayette County Sheriff’s Office, the Fayette County Detention Center, the Fayette County Public Schools Law Enforcement Division, the Fayette Commonwealth’s Attorney’s Office, and the United States Attorney’s Office.   

“Combatting violent crime is a cornerstone priority for the Department of Justice and our Office,” said United States Attorney Robert M. Duncan, Jr.  “As part of the enhanced PSN efforts, federal, state, and local law enforcement personnel are working in partnership to reduce violent crime in Lexington and throughout the Eastern District of Kentucky.  These law enforcement partnerships have been effective and have resulted in innumerous violent offenders being removed from our streets, making our communities safer.  While we are encouraged by the successes thus far, we recognize there is more work to be done.  We are committed to continuing in this important endeavor; it truly benefits us all.”       

“Local, state and federal law enforcement and prosecutors are communicating and coordinating like never before in Fayette County and we are seeing some good results,” stated Lou Anna Red Corn, Fayette Commonwealth’s Attorney.

“The partnerships fostered by the Project Safe Neighborhoods initiative, greatly enhances the total community public safety philosophy of the Lexington Police Department and the Lexington Fayette Urban County Government,” said Lawrence Weathers, Lexington Chief of Police.  “Through partnering with the U.S. Attorney, the Commonwealth’s Attorney, the Fayette County Sheriff’s Department, the Fayette County Public School Police, as well as other Federal Law Enforcement agencies, concrete plans and actions have been developed that have led to effective and efficient enforcement measures which have had a direct impact on, not just violent crime, but overall crime as well.”

“Working with our law enforcement partners, ATF continues to drive the reduction of violent firearm crimes through technical expertise and by focusing investigations on trigger-pullers and traffickers who pose the greatest threat to our communities,” stated Stuart Lowrey, Special Agent in Charge of the ATF Louisville Division.  “ATF remains committed to the continued success of Project Safe Neighborhoods and this comprehensive approach to public safety.”

“The PSN program has a proven track record of bringing together law enforcement agencies to share information, share resources, and work together to apprehend and prosecute the most violent offenders,” said Kathy Witt, Sheriff of Fayette County.  “The revitalization and enhancement of PSN is a positive development for our community and communities across America.” 

“The message should be clear; the FBI is fully committed to eliminating violent crime in the Commonwealth of Kentucky,” said Michael A. Christman, Acting Special Agent in Charge of Louisville Division, FBI.  “As part of the Project Safe Neighborhoods, the FBI will continue to work with our law enforcement partners at the federal, state, and local levels to bring those who have not received this message to justice.”

Enforcement Actions 

In marking the one-year anniversary of the revitalized PSN program, here are a few examples of law enforcement successes in Lexington, during the past year:

• Antoine Lamar Burns, 36, of Lexington, was sentenced on June 26, 2018, to 10 years in federal prison, for being a convicted felon in possession of a firearm.  In his guilty plea, Burns admitted to possessing a .380 caliber pistol, firing shots at someone he believed was cooperating with law enforcement, and pointing the firearm at a former girlfriend.  
• Melvin Mahone, 31, of Lexington, was sentenced on June 29, 2018, to 15 years in federal prison, for trafficking in over 40 grams of fentanyl and possession of firearms in furtherance of drug trafficking. 
• Michael D. Jackson, 37, and Brandi Stamper, 30, both of Lexington, were sentenced in July 2018, for their roles in conspiring to distribute over 40 grams of fentanyl and possession of firearms in furtherance of drug trafficking.  Jackson was sentenced to 25 years in federal prison, and Stamper was sentenced to 15 years.
• Devvin Anglen, 28, of Lexington, a convicted felon, pled guilty in Fayette Circuit Court to possession of a firearm and Persistent Felony Offender charges, after a traffic stop led to the discovery of a weapon in the car and social media video of him firing two handguns at a local range.
• Billy Lane, 36 of Lexington, pled guilty in Fayette Circuit Court to trafficking in controlled substances and Persistent Felony Offender charges, and was sentenced to serve 15 years in March of 2018.  The execution of a search warrant in hotel room led to the discovery of heroin, cocaine, and other contraband that Lane was trying to destroy. 
• Akeem Lyvers, 22, of Lexington, pled guilty in Fayette Circuit Court to felony trafficking charges, including forfeiture of approximately $3,000 and a handgun with a “drum” magazine that held dozens of rounds, and was sentenced to serve 8 years in prison.

Community Partnerships

“We recognize that enforcement alone is not enough, and sustained success requires a comprehensive approach,” said U.S. Attorney Duncan.  “As part of that approach, Fayette County Violent Crime Task Force participants have engaged neighborhood organizations, to help us deter violent crime and prevent recidivism.  As part of the PSN initiative, Fayette County Violent Crime Task Force participants have also worked in prevention and re-entry efforts, and are working with the Fayette County Public Schools’ after-school programs to provide tutoring and mentorship to children.  This truly community effort is essential to combatting the threat.”

“As a prosecutor, holding offenders accountable is always my first priority, which usually means incarceration in gun violence cases,” said Commonwealth’s Attorney Red Corn.  “But my office, and other Task Force participants, are also very involved in PSN’s prevention, intervention, and re-entry work.  Recently, in support of our PSN efforts, I attended a meeting of parolees and probationers who are beginning community supervision.  The Public Library and a local mental health non-profit were also in attendance, sharing information about available education and mental health services.  It is PSN’s comprehensive approach to violent crime reduction that I believe will make a long term difference in public safety in our community.”

“The Project Safe Neighborhoods partnership initiative has helped remove several violent offenders from our streets, while also helping to improve existing community relationships and create new ones,” said Chief Weathers.  “This helps build community trust and government accountability by letting everyone in the community know that Project Safe Neighborhoods and its partners are serious about public safety.”

Improvements to Community Safety

Statistically, both nationally and locally, the PSN program is achieving positive results.  For example:

• The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline.  The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
• The preliminary information we have for 2018 gives reason for optimism and evidences that our efforts are continuing to pay off.  Specifically, public data from 60 major cities shows that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
• According to publicly available crime data from the Lexington Police Department, for the period of January 1 – August 31, 2018, robberies, aggravated assaults, breakings and entering, larcenies, and auto thefts are all down, when compared to January 1 – August 31, 2017. 
• Through September 15, 2018, there have been 62 assaults with firearms reported in Lexington.  There were 94 assaults with firearms reported in 2017.
• In 2018 through, August 31, there have been 19 homicides in Lexington.  In 2017, there were 28 homicides. 

“The PSN program is based on strong partnerships,” said U.S. Attorney Duncan.  “We will strive to build on our shared successes, recognizing there is still work to be done,” said U.S. Attorney Duncan.  “We look forward to continued partnerships, to developing new ones, and to making further progress.  This endeavor truly advances everyone’s interests.”

Learn more about Project Safe Neighborhoods.

PITTSBURGH, PA - A resident of McKees Rocks, Pennsylvania, pleaded guilty in federal court to a charge of aiding and abetting the possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.

Talaya Thompkins, 36, pleaded guilty to one count before United States District Judge David Cercone.

In connection with the guilty plea, the court was advised that from on or about August 27, 2016, and continuing thereafter to on or about August 7, 2017, Talaya Thompkins unlawfully aided and abetted Vincent Eggleton’s possession of firearms. Thompkins purchased the two firearms in August 2016 and February 2017 and made them available to Eggleton. Thompkins was aware that Eggleton had a prior felony conviction, which prohibits Eggleton from possessing any firearm.

On March 1, 2018, Eggleton pleaded guilty to possession of a firearm and ammunition by a felon, as well as conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and a related drug-trafficking charge. On August 1, 2018, Eggleton was sentenced to a total of 121 months’ imprisonment on those charges.

Judge Cercone scheduled sentencing of Thompkins for February 13, 2019. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

The court continued Talaya Thompkins on bond pending sentencing.

Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as a federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police.

This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.

TRENTON, N.J. – Three New Jersey men – a real estate investor, a builder, and a real estate settlement attorney – were arraigned today on multiple charges in connection with their alleged roles in a mortgage fraud scheme, U.S. Attorney Craig Carpenito announced. 

Victor Santos, a/k/a “Vitor Santos,” 58, of Wachtung, New Jersey; Arsenio Santos, a/k/a “Gaspar Santos,” 51, of Warren, New Jersey; and Fausto Simoes, 65, of Millington, New Jersey, were charged on Sept. 24, 2018, in a 19-count indictment. They were each charged with one count of conspiring to commit bank fraud. Victor Santos was charged with nine counts of bank fraud and nine counts of making false statements in an application for credit. Arsenio Santos was charged with four counts of bank fraud and four counts of making false statements in an application for credit. Simoes was charged with seven counts of bank fraud and seven counts of making false statements in an application for credit.

All three were arraigned today before U.S. District Judge Michael Shipp in Trenton federal court. 

According to documents filed in this case:

From September 2007 through November 2008, Victor Santos, a real estate investor; Arsenio Santos, a builder; and Simoes, a real estate settlement attorney, and others allegedly conspired to fraudulently obtain mortgage loans with a total value of more than $4 million.

Victor Santos, Arsenio Santos, and their conspirators allegedly recruited “straw buyers” –individuals who purchase a property for another in order to conceal the identity of the actual purchaser, usually in exchange for a fee – to purchase properties in Newark. 

In exchange for the use of the straw buyers’ identity and credit history, Victor Santos, Arsenio Santos, and others allegedly agreed to pay each of the straw buyers a fee of at least $5,000, provide the straw buyer’s down payment and cash required for closing, secure tenants to lease the purchased property, and make the mortgage payments on each of the fraudulently obtained mortgages. These secret agreements were not disclosed to the bank. Shortly after the properties were acquired the mortgages went into default. 

For the three representative schemes highlighted in the indictment, Victor Santos, Arsenio Santos, and their conspirators prepared and submitted mortgage applications containing false information to the bank and obtained loans totaling more than $1.3 million. The conspirators allegedly arranged transactions for the Newark properties whereby the straw buyers would nominally purchase the properties for far more than the sellers had agreed to sell them, and the conspirators diverted excess loan proceeds for their own benefit and to further the conspiracy. 

Simoes was the closing attorney on approximately 10 of the fraudulent transactions and signed and certified the final settlement statements. These statements falsely stated that the cash required for closing for each transaction came from the straw buyer. In fact, Victor Santos and his conspirators provided those funds to Simoes and the funds were deposited into Simoes’ attorney trust account. For certain transactions, a shell company – whose bank account was controlled by Victor Santos and a conspirator – and to which funds from fraudulently obtained mortgage loans were disbursed – was the source of the cashier’s checks given to Simoes to fund the straw buyer’s cash required at closing. For other transactions, down payments came from an account owned and controlled by Arsenio Santos or from the proceeds of a previously obtained fraudulent loan.

The conspiracy to commit bank fraud count, the bank fraud counts, and the false statement counts, each carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others whichever is greater.

U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Acting Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie of the Newark office, with the investigation leading to the charges.

The government is represented by Special Assistant U.S. Attorneys Charlie Divine and Kevin DiGregory of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and the Federal Housing Finance Agency, Office of Inspector General.
 

            Montgomery, Alabama– A federal grand jury unsealed an indictment today charging Michael Brandon Smirnoff, 25, a former officer at the Tallassee Police Department in Tallassee, Alabama, with federal civil rights and obstruction offenses, announced U.S. Attorney Louis V. Franklin, Sr. Smirnoff is charged with two counts of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and one count of obstruction of justice, in violation of Title 18, United States Code, Section 1519.

            The indictment alleges that Smirnoff twice used unlawful force on arrestees and submitted a false report to cover up one of the incidents. In the first incident, on March 29, 2016, Smirnoff slammed a handcuffed man to the ground, then used unreasonable force while placing him into a police vehicle. In a second incident on July 5, 2015, Smirnoff tased a man who had already been placed in handcuffs and was not physically resisting. As a result of these unjustified uses of force, both victims sustained bodily injuries. The indictment further charges that Smirnoff obstructed justice by submitting a false report about the second incident.

            If convicted, Smirnoff faces a maximum sentence of 10 years in prison for the deprivation of rights charges and 20 years in prison for the obstruction charge, three years of supervised release, and a fine of up to $250,000.

            An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.

            This case was investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Denise Simpson of the Middle District of Alabama and Civil Rights Division Trial Attorney Michael J. Songer.

CLARKSBURG, WEST VIRGINIA – Four Florida residents were sentenced today to a combined 297 months incarceration for their involvement with a gas station skimming fraud scheme, United States Attorney Bill Powell announced.

Meylan Montalvo Gomez, of Hialeah, Florida, age 27, was sentenced to 57 months incarceration. Gomez pled guilty to one count each of “Conspiracy to Commit Access Device Fraud” and one count each of “Access Device Fraud-Use of Unauthorized Access Device” in June 2018.
 
Yosan Pons Sosa, of Miami, Florida, age 29, was sentenced to 46 months incarceration. Sosa pled guilty to one count each of “Conspiracy to Commit Access Device Fraud” and one count each of “Access Device Fraud-Use of Unauthorized Access Device” in June 2018.

Lazaro Serrano Diaz , of Miami, Florida, age 27, was sentenced to 57 months incarceration. Diaz pled guilty to one count each of “Conspiracy to Commit Access Device Fraud” and one count each of “Access Device Fraud-Use of Unauthorized Access Device” in June 2018.

Naudi Reyes Fernandez, of Miami, Florida, age 37, was sentenced to 51 months incarceration. Fernandez pled guilty to one count of “Conspiracy to Commit Access Device Fraud” and one count of “Access Device Fraud-Possession of Device-Making Equipment” in June 2018. 

Each admitted to their roles in a conspiracy spanning four states that involved using skimming devices at gas pumps, using technology to upload the account information, and creating fraudulent cards with said accounts to make unauthorized transactions at different businesses in West Virginia and elsewhere.

The court calculated the intended loss as approximately $1,000,000 based upon the fact that when the defendants were arrested, they were found with a laptop containing over 2,000 different debit and credit card numbers.

The court applied a sentencing enhancement based upon the sophistication of the offense. This was based in part on the use of blue tooth capable skimming devices which they had placed inside gas pumps to remotely obtain the card numbers.

The judge also ordered each defendant to pay $33,750. The judge also ordered restitution in the amount of $61,844.56.

Forfeiture of the following was also ordered:

a.    approximately thirty-three (33) gift cards containing an unknown value; 
b.    approximately $72,495.73 in United States Currency;
c.    approximately $28,498.00 worth of Western Union money orders;
d.    approximately $10,300.00 worth of MoneyGram money orders; 
e.    one magnetic stripe card reader-writer-encoder
f.    two laptops
g.    six cell phones

Assistant U.S. Attorney Jarod J. Douglas prosecuted the cases on behalf of the government. The Federal Bureau of Investigation, United States Secret Service, West Virginia State Police and the Monongalia County Sheriff’s Office investigated. 
 
Senior U.S. District Judge Irene M. Keeley presided.

WASHINGTON – A Honduran man was sentenced in federal court today to 46 months in prison for his role in a conspiracy to launder into the United States more than $1.3 million in foreign bribe payments and public funds from the Republic of Honduras, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Deputy Director and Acting Director Ronald D. Vitiello of U.S. Immigration and Customs Enforcement (ICE) announced.

On June 27, Carlos Zelaya, 47, a citizen of Honduras who was residing in the New Orleans area, pleaded guilty to one count of conspiracy to commit money laundering before U.S. District Judge Martin L.C. Feldman of the Eastern District of Louisiana, who imposed today’s sentence and ordered Zelaya to serve three years of supervised release following his prison sentence.  The defendant consented to the forfeiture of his interest in over one million dollars in real estate obtained through the scheme as part of his plea.

According to admissions made as part of the plea agreement, Carlos Zelaya conspired with his brother, the former Executive Director of the Honduran Institute of Social Security, and others to launder over $1.3 million in bribe payments.  These bribes were paid by two Honduran businessmen for the benefit of the Executive Director.  The funds were then laundered into the New Orleans area through international wire transfers and used to purchase real estate, including a commercial property.  Carlos Zelaya collected and spent the rental income derived from the properties, even after a federal judge ordered him to preserve the funds pending resolution of a federal civil forfeiture suit.  During the course of the civil case, he also made false statements to the U.S. government in written discovery responses and to a federal judge in the Eastern District of Louisiana while testifying under oath.  As part of the conspiracy, Carlos Zelaya also used his brother’s high-ranking official position to profit from lucrative Honduran government contracts and then laundered the misappropriated funds into the New Orleans area.

The investigation was conducted by ICE Homeland Security Investigations New Orleans and Miami.  The case is being prosecuted by Trial Attorneys Stephen A. Gibbons, Marybeth Grunstra, and Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section with assistance from the U.S. Attorney’s Office for the Eastern District of Louisiana.  Valuable assistance was provided by the Justice Department’s Office of International Affairs.

This case was brought under the Department of Justice’s Kleptocracy Asset Recovery Initiative by a team of prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section.  These prosecutors partner with federal law enforcement agencies to prosecute those who engage in and facilitate foreign official corruption which has effects on the U.S. financial system, to forfeit assets purchased with the proceeds of that corruption, and, where appropriate, to repatriate the recovered funds for the benefit of the people of the country harmed by such abuse of public office.  Individuals with information about possible proceeds of foreign corruption located in, or laundered through, the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov.

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18-1288

BEAUMONT, Texas – Two Beaumont brothers have been indicted on federal violations in connection with a shooting in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.                 

Brandon Oneal Dodd, 33, was indicted by a federal grand jury on Oct. 3, 2018, and charged with conspiracy to commit a Hobbs Act robbery, attempted Hobbs Act robbery, and aiding and abetting the discharge of a firearm during a crime of violence. 

Darryl James Dodd, 36, was indicted and charged with being a felon in possession with a firearm.

According to information presented in court, on Aug. 25, 2018, Brandon Dodd and two co-conspirators approached the Valero Fuel Mart located at 1481 IH-10 East in Beaumont with intentions of robbing it.  The men found an employee of the convenience store in the parking lot near his car and forced him back into the store at gunpoint.  One of the men jumped on the counter, pointed a gun at the store clerk and demanded money.  The clerk resisted and was shot in the chest as the three men fled the scene.  Although it is not believed Darryl Dodd was present during the shooting, it was revealed during the investigation that Darryl Dodd, a convicted felon, had possessed the firearm that was used in the attempted robbery.

If convicted, Brandon Dodd faces up to 20 years in federal prison.  Darryl Dodd faces up to 10 years in federal prison.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Jefferson County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Russell E. James.

It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

            WASHINGTON – David Tipton, 52, of Alexandria, Va., was sentenced today to a year and a day in prison for defrauding lenders who provided him with nearly $710,000 towards the purchase and renovation of a residential property in Northeast Washington.

            The announcement was made by U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.

            Tipton pled guilty in May 2018, in the U.S. District Court for the District of Columbia, to a charge of mail fraud. He was sentenced by the Honorable Senior Judge Paul L. Friedman. Following his prison term, he will be placed on three years of supervised release. He also must pay $448,994 in restitution, as well as an identical amount in a forfeiture money judgment.

            According to the government’s evidence, Tipton owned a company that was created to purchase, renovate, and sell residential real estate in the District of Columbia and Virginia. He signed a contract in January 2013 to purchase a property in the 500 block of 14^th Street NE for $450,000 in cash, planning to renovate and sell the property for a profit. He falsely represented that he had the required funds available to close the cash transaction and created a false bank statement to back up the claim. In fact, almost all of the money for the purchase was coming from two unrelated private individuals whom he had met at a real estate investment seminar. Each of them provided Tipton with $224,497, for a total of $448,994, in return for Deeds of Trust securing their interest in the property.  Tipton did not tell the settlement company about the loans.  As a result, the Deeds of Trust were not recorded.

            Additionally, Tipton later obtained $260,000 from a private money lender to renovate the property.  Tipton did not disclose to the lender that two other individuals held Deeds of Trust in the property.   

            In announcing the sentence, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including former Assistant U.S. Attorney John P. Marston, former Criminal Investigator Juan Juarez, Paralegal Specialist Aisha Keys, and former Paralegal Specialist Kristy Penny. Finally, they commended the work of Assistant U.S. Attorney Anthony Saler, who investigated and prosecuted the case.

ALBUQUERQUE – Jason Christopher Davis, 46, of Las Cruces, N.M., pled guilty today in federal court to a child pornography charge.  Davis entered the guilty plea under a plea agreement that recommends a 15-year prison sentence followed by 20 years of supervised release.  Davis will also be required to register as a sex offender

Davis was arrested in May 2018, on a criminal complaint charging him with receiving child pornography in April 2018, in Dona Ana County, N.M.  According to the complaint, the Las Cruces Police Department executed a search warrant on an email account subscribed to Davis that was used to upload a video file containing child pornography.  The complaint further stated that on May 15, 2018, Homeland Security Investigations and the Las Cruces Police Department seized numerous items including digital media containing child pornography while executing a state search warrant at Davis’ residence.  At the time of these events, Davis was employed as a Supervisory U.S. Border Patrol Agent.

During today’s proceedings, Davis pled guilty to a felony information charging him with production of a visual depiction of a minor engaged in sexually explicit conduct.  In entering the guilty plea, Davis admitted that on May 17, 2015, he produced a child pornography video of a five-year-old minor child and uploaded the video onto his laptop computer.

Davis has been in federal custody since his arrest and will remain detained pending a sentencing hearing, which has yet to be scheduled.

The case was investigated by the Las Cruces office of HSI, the Office of Inspector General of the U.S. Department of Homeland Security, and the Las Cruces Police Department with assistance from the Office of Professional Responsibility of the U.S. Customs and Border Protection, the Management Inquiry Team of the U.S. Border Patrol, the FBI, and the New Mexico Attorney General’s Office. 

Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case 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 information about Project Safe Childhood, please visit http://www.justice.gov/psc/.  Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437, or to contact Homeland Security Investigations at 1-866-DHS-2-ICE.

The case also was brought as a part of the New Mexico Internet Crimes Against Children (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 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office.  Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.

PORTLAND, Ore.—One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the department’s violent crime reduction strategy.

PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”

“Keeping our communities safe is the most sacred duty of law enforcement officials at all levels of government. It remains a key focus of the U.S. Attorney’s Office and the entire federal law enforcement community,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The revitalized PSN program focuses federal resources in support of our state, local and tribal partners’ ongoing effort to reduce violent crime in Oregon. Over the past year, we’ve seen many of the district’s most violent criminals brought to justice as a result of this program.”

As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:

Enforcement Actions

The U.S. Attorney’s Office for the District of Oregon works in partnership with federal, state, local and tribal law enforcement agencies to investigate and prosecute the district’s most violent offenders under the PSN program. Recent prosecutions include:

U.S. v. Dencklau et al.

On June 28, 2018, a federal grand jury in Portland returned a four-count indictment charging three members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering, kidnapping and murder.

Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 37, of Portland were charged with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death. Between June 30 and July 1, 2015, the defendants are alleged to have kidnapped, tortured, and murdered Robert Huggins, a resident of southeast Portland.

Huggins was a former treasurer of a local GJOMC chapter. The indictment alleges Dencklau, Fisher and Pribbernow engaged in the violent actions leading to Huggins’ death for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.

A 10-day jury trial is scheduled for December 11, 2018.

Read More

U.S. v. Brockner

On August 14, 2018, Jesse Lee Brockner, 32, of Portland, was sentenced to 120 months in prison and three years’ supervised release for armed bank robbery and possessing a firearm in furtherance of a crime of violence.

In August 2017, three men burglarized and stole a vehicle from a barn in Yamhill County, Oregon. Two of the suspects fled in a moving truck and a third in the stolen vehicle. After Yamhill County Sheriff deputies located, arrested and interviewed the two suspects who fled in the moving truck, they identified Brockner as the third suspect. During a search of the moving truck, deputies found a backpack containing approximately $4,000, drug paraphernalia, and Brockner’s driver’s license.

Later the same morning, Brockner robbed a U.S. Bank branch in Beaverton, Oregon wearing a welding mask and holding a firearm. During the robbery, Brockner made numerous threats of physical violence and pointed a handgun at the teller. A witness observed Brockner walk through a parking lot adjacent to the bank and enter a vehicle matching the description of the stolen vehicle.

Approximately two hours later, an FBI Task Force Officer with the Portland Police Bureau (PPB) observed a vehicle matching the stolen vehicle’s description in Southeast Portland. After confirming Brockner’s identity, multiple marked PPB patrol units responded to assist the Task Force Officer. A high risk traffic stop was attempted and led to a vehicle pursuit. The pursuit ended in a crash and an officer involved shooting in Northeast Portland. Brockner was arrested and transported to a local hospital to receive medical attention.

Read More

U.S. v. Manzo

On August 27, 2018, Gonzalo Manzo, Jr., 33, of Fresno, California, pleaded guilty to one count each of conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.

In 2017, Manzo coordinated the shipment of a kilogram of cocaine from California to Southern Oregon. Manzo and his co-conspirators sold the cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Oregon in exchange for firearms and $21,000 in cash. Manzo intended for the firearms and cash to be transported back to California but agents arrested Manzo and his co-conspirators and the firearms were seized by law enforcement.

Manzo will be sentenced on December 11, 2018.

Read More

U.S. v. Fleet

On September 4, 2018, Christopher James Fleet, 23, of Portland, was sentenced to 84 months in federal prison and five years of supervised release for possessing distribution quantities of methamphetamine and two firearms.

On August 23, 2017, deputies from the Multnomah County Sheriff’s Office Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.

During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.

Read More

These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.

LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Thomas L. Noyes, Inspector in Charge, Fort Worth Division, U.S. Postal Inspection Service, announced today the indictment of Stephen Gregory Potts, 46, of Conway, after he allegedly fired multiple shots in a Conway post office.

A federal complaint charging Potts was first issued on Monday. A federal grand jury then returned an indictment against Potts on Tuesday for one count of assaulting a United States Postal Service employee, one count of using a firearm during and in relation to a crime of violence, and one count of possessing a firearm in a federal facility. Potts is currently in custody and will be seen by a United States Magistrate Judge at a later date.

According the allegations in the complaint affidavit, on September 29, 2018, Potts, armed with a handgun, entered the Conway Main Post Office around 12 p.m. when there were four employees on duty. According to witnesses at the scene, Potts initially appeared to be filling out a mailing label. Potts then tried to follow two employees through a workroom door, past the counter. When told he could not go through the door, Potts pulled out a gun and climbed over the counter. At that point, a supervisor stepped between Potts and the two employees, who left to call 9-1-1 and then hid in a bathroom.

Potts then fired the first shot and attempted to light some mail on fire. According to the complaint affidavit, Potts eventually fired five or six shots, striking no one, but missing the supervisor’s shoulder by six inches. When Potts walked behind some equipment, the supervisor ran out of the building. Eventually Conway Police officers arrived and took Potts into custody, where he remains.

The maximum penalty for assaulting a United States Postal Employee, a violation of 18 U.S.C. § 111(a)(1), is not more than 20 years in prison, not more than three years of supervised release, and a $250,000 fine. The maximum penalty for discharging a firearm during and in relation to a crime of violence, a violation of 18 U.S.C. § 924(c), is not less than 10 years in prison, consecutive to the underlying charge, not more than five years supervised release, and a $250,000 fine. The maximum penalty for possession of a firearm in a federal facility, a violation of 18 U.S.C. § 930(b), is not more than five years in prison, not more than three years of supervised release, and a $250,000 fine.

This case was investigated by U.S. Postal Inspection Service and the Conway Police Department. The case is being prosecuted by Assistant United States Attorney Jordan Crews. An indictment or complaint contains only allegations. A defendant is presumed innocent unless and until proven guilty.

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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar

Twitter:
@EDARNEWS

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ABELL OUJADDOU pled guilty to participating in a scheme to trade in the stock of the Valspar Corporation (“Valspar”) based on material nonpublic information relating to another’s company’s efforts to acquire Valspar.  OUJADDOU pled guilty to one count of conspiracy to commit securities fraud before U.S. District Judge Jed S. Rakoff.

U.S. Attorney Geoffrey Berman said: “Abell Oujaddou, a salon owner and hairstylist, pled guilty today to receiving favorable material nonpublic information about Valspar’s stock, and then trading on that information before it became public, netting nearly $200,000 in illegal gains.  As he admitted today, Oujaddou – who had never previously traded Valspar stock – was given the tip by his co-defendant, who worked at a rating agency and had access to inside information about the acquisition of Valspar.  Our Office will continue to fight insider trading and ensure that those who cheat in our financial markets are held to account.”

According to the allegations contained in the Complaint and Indictment filed against OUJADDOU and his co-conspirators, and statements made in related court filings and proceedings:[1]

Rating Evaluation Services and the Insider

When a company announces an acquisition, the acquiring company’s credit rating agency often evaluates, and ultimately issues a press release relating to, the impact that the acquisition could have on the acquiring company’s credit rating.  Therefore, companies often contact rating agencies before an acquisition is publicly announced in order to secure the rating agency’s views on how a possible acquisition could impact a company’s credit rating.  All the major rating agencies offer a service – sometimes known as a Rating Evaluation Service (“RES”) – that provides the company with a rating committee decision with respect to a proposed acquisition.

In March 2016, a credit rating agency in Manhattan (the “Firm”) assigned Sebastian Pinto-Thomaz, a credit ratings analyst, to work on an RES for the Sherwin-Williams Company (“Sherwin-Williams”) in advance of its contemplated but unannounced acquisition of the Valspar Corporation (“Valspar”).  In connection with this assignment, Pinto-Thomaz had access to confidential information about Sherwin-Williams’ acquisition of Valspar prior to the public announcement of the acquisition.  The Firm’s written policies prohibited the unauthorized disclosure of confidential information, which included the information about the possible acquisition of Valspar (the “Inside Information”).  During his tenure at the Firm, Pinto-Thomaz reviewed and certified his duties of loyalty and confidentiality to the Firm and its clients.

The Insider Trading Scheme

In March 2016, Pinto-Thomaz misappropriated the Inside Information about Sherwin-Williams’ acquisition of Valspar and passed it to OUJADDOU and Jeremy Millul so that they could use it to make profitable trades.  On March 21, 2016, the first trading day after the public announcement of the acquisition, the price of Valspar stock increased approximately 23 percent over the prior day’s close.

OUJADDOU is a Manhattan hairstylist and salon owner who has a close relationship with Pinto-Thomaz, as well as with a member of Pinto-Thomaz’s immediate family (the “Relative”).  Pinto-Thomaz repeatedly provided OUJADDOU with Inside Information about the Valspar acquisition, oftentimes shortly after Pinto-Thomaz became aware of the Inside Information through his work at the Firm.  From March 10, 2016, through March 18, 2016, OUJADDOU, who had never previously purchased Valspar or Sherwin-Williams’ securities, used the Inside Information he had received from Pinto-Thomaz to purchase 8,630 shares of Valspar stock.  After the acquisition was publicly announced, OUJADDOU sold his Valspar shares for approximately $192,080 in profits.  OUJADDOU admitted that he agreed to give Pinto-Thomaz a portion of OUJADDOU’s trading profits in exchange for the Inside Information.

Millul is a Manhattan jeweler who has a close personal friendship with Pinto-Thomaz and the Relative.  Pinto-Thomaz also provided Millul with Inside Information about the Valspar acquisition.  Although Millul had never owned a brokerage account in the United States and had never traded in U.S. securities prior to March 2016, he opened a brokerage account on March 13, 2012, and shortly thereafter purchased 480 shares of Valspar common stock.  On March 18, 2016, the last trading day before the acquisition was publicly announced, Millul also purchased 75 Valspar out-of-the-money call options. After the acquisition was publicly announced, Millul sold his Valspar stock and options for approximately $106,806 in profits. In December 2016, Millul gave Pinto-Thomaz $3,500 in cash.

Pinto-Thomaz Makes False Statements About OUJADDOU and Millul in Connection with a FINRA Inquiry

In June 2016, the Financial Industry Regulatory Authority (“FINRA”) sent the Firm a list of individuals and entities that had traded in Valspar in advance of the public announcement of the acquisition (the “List”).  The Firm forwarded the List to its employees who had worked on the Sherwin-Williams RES, including Pinto-Thomaz, asking the employees to respond by stating whether they had a past or present relationship with any individual or entity on the List. Although both OUJADDOU and Millul were on the List, Pinto-Thomaz denied having a relationship with anyone on the List. 

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ABELL OUJADDOU, 55, of New York, New York, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.  The maximum potential sentence in this case is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.

OUJADDOU is scheduled to be sentenced on February 5, 2019 at 4 p.m.

Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.