St. Louis, MO – Cory Hutcheson, 35, of East Prairie, MO, pled guilty to wire fraud and to illegally possessing and transferring the means of identification of others, in this case mobile telephone numbers, without lawful authority, and in connection with the commission of the state felony crime of Forgery.  Sentencing has been set for February 28, 2019.

In his plea, Hutcheson admitted from April of 2014 through March 2017, he devised a scheme to obtain hundreds of individual’s location data.  The defendant submitted thousands of Securus LBS requests and obtained the location data of individual phone subscribers without valid legal authorization, and, often, without the consent or even knowledge of the targeted individual.  The defendant obtained the location data of mobile telephone users, including law enforcement officers, personal associates and friends, as well as a judge, without required legal process or authorization.  He would routinely upload false and fraudulent documents to the Securus LBS platform.  The location information request was submitted using wire communications transmitted in interstate.

Hutcheson faces a maximum penalty of 20 years and a fine of $250,000 on the wire fraud charge and not more than 5 years and a fine of $250,000 on the transfer of identification information charge.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  As part of the plea, Hutcheson agreed to resign as Sheriff not later than November 24, 2018.

“Sheriff Hutcheson simply misused an important law enforcement tool for his own purposes and, as a result, invaded the privacy of hundreds without the appropriate legal process,” said U.S. Attorney Jeff Jensen.   

This case was investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol and was prosecuted in cooperation with the Missouri Attorney General’s Office.  Assistant United States Attorneys Gwen Carroll and Lindsey McClure-Hartman are handling the case for the U.S. Attorney’s Office.

NEWARK, N.J. – An Albuquerque, New Mexico, man has been convicted on federal dog fighting charges, stemming from a case brought by federal authorities in the U.S. District Court in the District of New Mexico. Robert Arellano, 65, pleaded guilty on Nov. 15, 2018, in federal court in Trenton, New Jersey, to three felony counts (Counts 1-3 of the indictment) of possessing a dog intended for use in an animal fighting venture at his home in Albuquerque. U.S. Attorney for the District of New Jersey Craig Carpenito, Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division, and U.S. Attorney for the District of New Mexico John C. Anderson made the announcement.

“Dog fighting is vicious and cruel. And beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “The message from this conviction is simple: if you fight dogs in New Jersey, you will face prosecution and imprisonment.”

“Dog fighting is a cruel and brutal practice that has no place in a civilized society,” said Assistant Attorney General Jeffery Bossert Clark. “The Department of Justice is aggressively pursuing those who engage in this inhumane spectacle, which is often linked with many forms of violent and organized criminal activity. Today’s sentencing demonstrates our firm commitment to fight back against those who would abuse these animals, in clear violation of federal law.”

Yesterday’s conviction is separate from and in addition to a verdict rendered against Arellano and three others by a federal jury in Trenton in October. In that case, the jury convicted the four defendants on all 23 counts of violating and conspiring to violate the animal fighting prohibitions of the federal Animal Welfare Act, following a near month-long trial before Judge Sheridan.

From 2012 through June 1, 2016, Arellano possessed dogs at his home in Albuquerque for dog fighting purposes, and trafficked in dogs with other dog fighters in Indiana and New Jersey so that those dogs could be used in fights. He also maintained a collection of dog fighting videos, records, how-to materials, and photographs. Arellano meticulously recorded the dogs’ fighting pedigrees and histories, previous fights and kills, serious injuries they inflicted on other dogs or sustained themselves, and future planned fights for the dogs. He also kept veterinary drugs and equipment to shield the dogs from professional veterinary scrutiny and care, including a used I.V. line containing canine DNA, injectable horse steroids, and injectable veterinary medicines manufactured in Mexico.

This case is part of Operation Grand Champion, an ongoing multi-state dog fighting investigation. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 123 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government, and eleven defendants have been convicted or indicted in four different states. The case was prosecuted in New Jersey by Assistant U.S. Attorney Kathleen O’Leary of the Health Care and Government Fraud Unit, and in New Mexico by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorneys Letitia Simms and Paul Mysliwiec. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.

Each count of conviction carries a maximum of five years in prison and a criminal fine of up to $250,000. Five other defendants in the case previously pleaded guilty to dog fighting and firearms charges and were sentenced to a total of 153 months in prison.

Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Jeffrey Rodriguez, a/k/a Jefry Francisco Portillo Corvera, or “Hyper,” age 22, a citizen of El Salvador residing in Hyattsville, Maryland, today to 90 months in prison, followed by 3 years of supervised release, for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13.  Rodriguez is expected to be deported following completion of his federal prison sentence.

The sentencing was announced by United States Attorney for the District of Maryland Robert K. Hur, Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Interim Chief Amal Awad of the City of Hyattsville Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks, and Montgomery County State’s Attorney John McCarthy.

According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States.  Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement.  MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs.  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. 

As detailed in his plea agreement, Rodriguez admitted that from about August 2016, he was a member and associate of the Sailors clique of MS-13.  Rodriguez admitted that on August 9, 2016, he and other MS-13 members and associates planned and conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.

Specifically, Rodriguez admitted that on August 9, 2016, Rodriguez and an MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims.  Rodriguez and his co-conspirator were armed with a firearm and a knife.  Upon attempting to rob the victims, and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims, who sustained serious injuries, including gunshot and stab wounds.  Rodriguez and his co-conspirator also sustained gunshot wounds.  After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, got into another vehicle in which another MS-13 member was waiting and drove to a local hospital, where Rodriguez was admitted for treatment.

United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski praised HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the City of  Hyattsville Police Department, the Prince George’s State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation.  Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Daniel C. Gardner, and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.

# # #

A federal judge sentenced two men today in U.S. District Court for conspiring to brandish a firearm during a Dec. 26, 2017, carjacking, and for firing at a Tulsa police officer during the resulting pursuit, announced U.S. Attorney Trent Shores.

U.S. District Judge John E. Dowdell sentenced Brandon Mendinghall, 24, of Stillwater, to 16 years in federal prison. As part of his guilty plea on Aug. 20, Mendinghall admitted to conspiring to rob a woman at gun point, steal the car she was driving and assist his co-conspirator during a police pursuit.

At a separate hearing, Judge Dowdell sentenced his co-conspirator, Michael Newlin, 19, of Owasso, to 32 years in federal prison for multiple charges, including conspiracy to carry, brandish and use a firearm during a crime of violence; carjacking; brandishing a firearm in furtherance of a crime of violence, obstruction of justice by attempting to kill a witness; and discharging a firearm at an officer. 

On Aug. 9, Newlin pleaded guilty to the charges, admitting that he brandished the firearm during the carjacking and fired at the officer while evading arrest. 

“Project Safe Neighborhoods was designed to prosecute violent criminals like Newlin and Mendinghall. These two defendants bought a ticket to federal prison the moment they decided to carjack the victims and then shoot at a police officer,” said U.S. Attorney Trent Shores. “The facts of this case are a stark reminder of the frequent dangers encountered by police officers as they risk their lives to protect our community. Tulsa is a safer place with these two behind bars. Thanks to the joint local-federal investigations and prosecutions in this case, these defendants will face serious consequences for their acts.”

Both men have been and will remain in custody until transferred to a U.S. Bureau of Prison’s facility.

The FBI, Tulsa Police Department, and Tulsa County Sheriff’s Office were the investigative agencies.  Assistant U.S. Attorneys Ryan M. Roberts and Christopher J. Nassar represented the United States in this prosecution. Law enforcement, the U.S. Attorney’s Office and the Tulsa County District Attorney’s Office partnered in this case as part of the Justice Department’s Project Safe Neighborhoods. 

Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools.  The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.

United States Attorney Erica H. MacDonald announced the sentencing of DAVID THOMAS ROUGIER, 46, to 88 months in prison for one count of wire fraud. ROUGIER, who pleaded guilty on July 18, 2018, was sentenced on November 19, 2018, before Chief Judge John R. Tunheim, in U.S. District Court in Minneapolis, Minnesota.

"The defendant callously preyed on several victims who were at or nearing retirement age – a population that not only lives on a tight budget, but is also trusting of those who claim to help them live out their golden years with security. David Rougier abused that trust and we are satisfied that today's sentence ensures that he will not only pay for his crimes, but will not be able to harm again," said FBI Special Agent in Charge Jill Sanborn. "The men and women of the FBI will continue doggedly go after those who lie, cheat and swindle their way into stealing the hard earned savings of our senior citizens." 

According to the defendant’s guilty plea and documents filed in court, between November 2010 and June 2017, more than a dozen individuals paid ROUGIER approximately $835,000 based upon his promises that he was using their money to buy gold and silver and, in some cases, that their investments were protected through guaranteed buyback contracts. ROUGIER promised his victim-investors that precious metals would be a safe investment and that the value would increase every year. Instead of purchasing the gold and silver, ROUGIER spent hundreds of thousands of dollars of victims’ money on shopping trips, entertainment, travel, strip clubs and other personal expenses.

According to the defendant’s guilty plea and documents filed in court, ROUGIER also collected yearly fees for “storage” and “management” from his victim-investors, purportedly to store and manage the gold and silver he claimed to have purchased on their behalf. Additionally, between 2013 and 2014, ROUGIER began telling his victim-investors that he had found a company, which he identified as “TAUG Limited” (“TAUG”) that would guarantee to purchase their gold and silver for a set price on a designated future date, making their investment virtually risk free. ROUGIER presented some of his victim-investors with a purported contract between them and TAUG, under which they were charged between $1,000 and $2,000 in order to avail themselves of this guaranteed future purchase price. These funds were paid directly to ROUGIER, who spent them on personal expenditures.

This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.

Assistant United States Attorney Amber M. Brennan prosecuted the case.

Defendant information:

DAVID THOMAS ROUGIER, 46

Lakeville, Minn.

Convicted:

• Wire Fraud, 1 count

Sentenced:

• 88 months in prison
• 3 years supervised release

###

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Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced today that IVAN NIEVES has been charged with vandalism and disorderly conduct. NIEVES was arrested this morning and will be presented before United States Magistrate Judge Henry Pitman in Manhattan later this afternoon.

U.S. Attorney Geoffrey S. Berman said:  “The protections of the First Amendment allow all Americans to express their opinions without fear of retaliation, censorship, or legal sanction. However, those protections do not apply when you deface federal property in the name of hate. Today’s arrest of Ivan Nieves for allegedly defacing the African Burial Ground National Monument aptly demonstrates the sanctity of those protections; and that those who do not follow the law while expressing their freedom of speech will be charged with federal crimes.”

As alleged in the Information,^[1] on or about November 1, 2018, NIEVES defaced a sign on the grounds of the African Burial Ground National Monument by writing a threatening racial slur on it. 

*                *                *

NIEVES, 57, of the Bronx, New York, is charged with one count of vandalism and one count of disorderly conduct.  Each charge carries a maximum penalty of six months 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.

Mr. Berman praised the outstanding investigative work of the New York Regional Office of the Federal Protective Service, the New York Field Office of the United States Park Police, and the New York City Police Department.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorney Jacob R. Fiddelman is in charge of the prosecution.

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

BOISE – Jerry Lynn Moore, 43, of Weiser, Idaho, was sentenced yesterday in U.S. District Court to 180 months in prison followed by 10 years supervised release, for attempted sexual exploitation of children, U.S. Attorney Bart M. Davis announced.  Moore was sentenced by U.S. District Court Judge David C. Nye.  Moore pleaded guilty on August 14, 2018.

According to the plea agreement, in December 2017, Moore posted a Craigslist advertisement seeking an individual to have sexual contact with “Daddy.”  A detective with the Idaho Internet Crimes Against Children (ICAC) task force responded to the ad in an undercover capacity, posing as a 15- year-old girl.  Between December 4, 2017 and March 15, 2018, Moore communicated with the undercover officer using the Google voice text application and voicemails.  During the online communications, Moore sent numerous messages attempting to persuade, induce, and entice the person he believed to be a 15-year-old child to meet him for the purpose of engaging in sexual activity.  Moore also requested the 15-year-old produce and send him videos and images of the child engaged in sexually explicit conduct.  On three occasions, Moore sent explicit images of his genitalia to the undercover detective.

On March 18, 2018, the undercover agreed to meet Moore for sexual activity and gave him the address of a residence where she was located.  Moore arrived at the location and was arrested by law enforcement.  Moore admitted he had arrived at the location to meet up with the 15-year-old for sexual contact, but claimed he could not recall her age.

At sentencing, Judge Nye also ordered Moore to forfeit the desktop computer, cell phone, and tablet used in the commission of the offense.  As a result of his conviction, Moore will be required to register as a sex offender.

This case was investigated by the Idaho Internet Crimes Against Children (ICAC) Task Force, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.

For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. 

For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

# # #

RALEIGH– The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, WOODIE LAMONT HERRING, 47, of Raleigh, was sentenced by United States District Judge James C. Dever, III for felon in possession of a firearm.  Judge Dever sentenced HERRING to 120 months imprisonment followed by 3 years of supervised release. 

HERRING was charged in a two-count Superseding Indictment on April 19, 2018, and pleaded guilty on July 23, 2018, to felon in possession of a firearm. 

On November 20, 2017, officers of the Raleigh Police Department (RPD) conducted a traffic stop on a vehicle that HERRING was driving.  A firearm sat on the passenger’s seat.  HERRING initially reached for the gun; however, after officers told him to move away from the gun, HERRING complied. HERRING later was released on bond on state charges, and federal charges were then filed against him.

On April 20, 2018, RPD officers again conducted a traffic stop on a vehicle that HERRING was driving.  During the stop, officers learned that HERRING had an active federal warrant and attempted to arrest HERRING.  HERRING fled.  Officers caught up to HERRING, who resisted arrest, fought with officers, and tried to pull a firearm out of his waistband.  HERRING ignored repeated commands to stop resisting, and eventually it took numerous officers to arrest HERRING.

This case is 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.   Since 2017 the United States Department of Justice has reinvigorated the PSN program and is 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.

That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina.  This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.

The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).

RALEIGH– The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, LYCURTIS QUAMAE LEON THOMPSON, 25, of Raleigh, was sentenced by United States District Judge James C. Dever, III for felon in possession of a firearm.  Judge Dever sentenced THOMPSON to 48 months’ imprisonment followed by 3 years of supervised release. 

THOMPSON was charged in a one-count Indictment on June 6, 2018, and pleaded guilty on August 23, 2018, to felon in possession of a firearm. 

On December 28, 2017, officers of the Raleigh Police Department conducted a traffic stop on a vehicle that THOMPSON was driving.  After observing THOMPSON making quick movements in the vehicle, officers searched him and found a loaded magazine, a digital scale, and money.  Inside the vehicle’s glove box officers found a .45 caliber handgun and a jar containing marijuana and cocaine.

This case is 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.   Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.

That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina.  This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.

The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).

United States Attorney Erica H. MacDonald today announced the arrest and extradition of IGOR VOROTINOV, 54. The defendant made his initial appearance on November 19, 2018, before United States Magistrate Judge Kate Menendez, in U.S. District Court, in Minneapolis, Minnesota. IGOR VOROTINOV was federally indicted on February 19, 2015, on one count of mail fraud.^[1] He was arrested on November 14, 2018 in the Republic of Moldova, and extradited to the United States, arriving on United States soil on November 17, 2018.

According to the indictment and documents filed in court, in March 2010, IGOR VOROTINOV obtained a $2 million life insurance policy on his own life from Mutual of Omaha Insurance Company (Mutual of Omaha), and designated his wife, IRINA VOROTINOV, as the primary beneficiary.

According to the indictment and documents filed in court, on October 1, 2011, police in Moldova received a phone call reporting a dead body at the entrance of the Cojusna village in central Moldova. Documents recovered from the body, including a passport, hotel cards, and contact phone numbers, identified the man as IGOR VOROTINOV. IRINA VOROTINOV traveled to Moldova to identify the body. After positively identifying the corpse as IGOR, IRINA obtained a death certificate from Moldovan authorities and had the corpse cremated. Returning to the United States with the death certificate and an urn with ashes claiming to be that of IGOR’s remains, IRINA submitted the death claim to Mutual of Omaha for the $2 million policy. A funeral was held where the urn was placed in a niche at Lakewood Cemetery in Minneapolis.

According to the indictment and documents filed in court, on March 23, 2012, Mutual of Omaha sent a proceeds check in the amount of $2,048,414.09, via United States mail, to IRINA’S home in Maple Grove, Minnesota.

According to documents filed in court, IRINA recruited a third party to open an account at a local branch of U.S. Bank and to deposit the insurance check into the account. She then caused the third party to transfer $1.5 million to another account at U.S. Bank in the name of her son, ALKON VOROTINOV. Between March 29, 2012 and January 2015, more than $1.5 million of the life insurance proceeds were transferred to accounts located in Switzerland and Moldova.

According to documents filed in court, on November 27, 2013, ALKON was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of IGOR VOROTINOV taken on April 19, 2013 and on May 12, 2013, in which IGOR is alive.

On May 16, 2016, IRINA VOROTINOV pleaded guilty to one count of mail fraud and one count of engaging in a monetary transaction in criminally derived property. On November 15, 2016, IRINA VOROTINOV was sentenced to 37 months in federal prison, by Judge Patrick J. Schlitz, in U.S. District Court in Minneapolis. She is currently serving her sentence.

ALKON VOROTINOV pleaded guilty on March 24, 2015, to one count of misprision of a felony. On September 27, 2016, ALKON was sentenced to three years of probation and $2,056,554.09 in restitution (to be paid jointly) by Judge Patrick J. Schlitz, in U.S. District Court in Minneapolis.

This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Justice Department’s Office of International Affairs handled the extradition in this matter.

Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.

Defendant Information:

Igor Vorotinov, 54

No Known Address

Charged:

• Mail Fraud, 1 count

Irina Vorotinov, 51

Plymouth, Minn.

Convicted:

• Mail Fraud, 1 count
• Engaging in a Monetary Transaction in Criminally Derived Property, 1 count

Sentenced:

• Mail Fraud, 37 months (served concurrently)
• Engaging in a Monetary Transaction in Criminally Derived Property, 37 months (served concurrently)
• 2 years each, supervised release (served concurrently)
• $2,056,554 in restitution to be paid jointly
   

Alkon Vorotinov, 28

Plymouth, Minn.

Convicted:

• Misprision of a Felony, 1 count

Sentenced:

• 2 years of probation
• $2,056,554 in restitution to be paid jointly

###

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

BOSTON – A Boston woman pleaded guilty yesterday in federal court in Boston for her role a scheme to embezzle more than $2.7 million from Bank of America using fraudulent donations to non-profit organizations. 

Brianna Alexis Forde, 36, pleaded guilty to one count of conspiracy to commit wire fraud and two counts of wire fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 2, 2019. In May 2017, Forde was indicted with co-conspirators Palestine Ace, a/k/a Pam Ace, 46, a former Senior Vice President of Bank of America’s Global Wealth & Investment Management Division, and her husband, Jonathan R. Ace, 46.

From approximately October 2010 to April 2015, the defendants engaged in an embezzlement and kickback scheme to defraud Bank of America of approximately $2.7 million using fraudulent donations to non-profit organizations. As part of the scheme, Palestine Ace used her position as a Senior Vice President at Bank of America to misappropriate funds from a marketing budget and transfer the money to non-profit organizations. Specifically, Palestine Ace authorized 75 transactions, each under $50,000, to non-profit organizations in Boston and Atlanta. Then, the defendants, either directly or indirectly, informed the non-profit organizations that a substantial portion of the donated funds must be returned in order to ensure that Bank of America would continue to fund the organization. The non-profit organizations either wrote a check to Jonathan Ace or Forde, or they returned funds to a Bank of America account, to which the defendants had access. On various occasions, Jonathan Ace pressured the recipients of the donated funds to return a higher percentage of the funds to him, by using intimidation and threats of public humiliation.

Palestine and Jonathan Ace used a portion of the funds they embezzled from Bank of America to support their lifestyle and pay for personal expenses, including lavish birthday parties and the purchase of a $17,000 Kawasaki motorcycle. 

On Nov. 14, 2018, Palestine Ace was sentenced to one year and one day in prison, two years of supervised release and ordered to pay restitution of $2,778,000 after pleading guilty in February 2018 to one count of conspiracy to commit bank fraud, five counts of wire fraud, and 12 counts of bank fraud. On Nov. 15, 2018, Jonathan Ace was sentenced to two years in prison, two years of supervised release and ordered to pay restitution of $1,855,000 after previously pleading guilty to one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of engaging in an unlawful monetary transaction.

The charges of wire fraud and conspiracy each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Gross; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Neil J. Gallagher of Lelling’s Securities and Financial Fraud Crimes Unit prosecuted the case.

KANSAS CITY, KAN. – A former banker who lives in Johnson County was sentenced today to 3 years probation and banned from working as a banker, U.S. Attorney Stephen McAllister said.

Michael W. Yancey, 59, Olathe, Kan., pleaded guilty to one count of conspiracy to make false statements on a loan application. In his plea, he admitted the crime took place while he was working as a senior vice president and commercial lender at Farmers Bank & Trust, N.A., in Overland Park. Farmers Bank is headquartered in Great Bend, Kan.

Yancey conspired with another person to obtain and maintain a business loan of $850,000 from Farmers Bank for two companies by falsely representing the terms of a real estate purchase in Basehor, Kan. He falsely represented to the bank that the property’s purchase price was $1.1 million when in fact it was $850,000. The false information made it appear the loan conformed to a maximum 75 percent loan-to-value ratio when in truth the loan was approximately 97 percent of the purchase price. He also falsely stated that the loan involved a seller carryback of $150,000 and a borrower equity injection of $125,000.

McAllister commended SIG-TARP (Office of Inspector General for the Troubled Asset Relief Program), the FBI, the U.S. Department of Labor - Office of the Inspector General, the U.S. Department of Labor - Employee Benefits Security Administration and Assistant U.S. Attorney Jabari Wamble for their work on the case.

CAMDEN, N.J. – A Trenton, New Jersey, man was sentenced today to 48 months in prison for robbing Metro PCS stores in Willingboro, New Jersey, Lumberton, New Jersey, and Levittown, Pennsylvania, in September and October 2016, U.S. Attorney Craig Carpenito announced.

Zeldrick Nance, 31, of Trenton, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to commit Hobbs Act robberies. Judge Rodriguez imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

On Sept. 29, 2016, Nance, Rodney Day, 27, of Trenton, and Lisa Anderson, 35, of Griffithville, Arkansas, drove to the Willingboro Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped the store occupants and placed them into a store bathroom. Meanwhile, Anderson stole cellular telephones and money from the cash registers. During the robbery, Day demanded the keys to a car owned by one of the victims. Day, Nance, and Anderson fled with the stolen cellular telephones and money in that stolen car.

On Oct. 7, 2016, Day, Nance, and Anderson drove to the Lumberton Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped a store occupant, put that victim in a storage room, and took the victim’s wallet and keys. Meanwhile, Anderson stole cellular telephones and money from the cash registers.

On Oct. 12, 2016, Day, Nance, and Anderson drove to the Levittown Metro PCS Store. Day once again brandished what appeared to be a firearm while Nance duct taped the victims inside the store and put them in a store bathroom. Anderson subsequently entered the store and stole cellular telephones and money from the cash registers.

In addition to the prison term, Judge Rodriguez sentenced Nance to three years of supervised release and ordered him to pay restitution of $26,307.

Day previously pleaded guilty and was sentenced Nov. 1, 2018, to 100 months in prison. Anderson has previously pleaded guilty to her role in the robberies and is currently scheduled for sentencing on Dec. 6, 2018.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the Willingboro, Lumberton, and Levittown police departments, as well as the Burlington and Mercer County Prosecutor’s Offices for their assistance in this case.

The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel: Peter A. Levin Esq., Philadelphia

John H. Durham, United States Attorney for the District of Connecticut, announced that SHAQUILLE RICHARDSON, 25, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 117 months of imprisonment, followed by five years of supervised release, for robbery and firearm offenses.

According to court documents and statements made in court, on June 30, 2016, at approximately 1:41 a.m., New Haven Police officers were dispatched to Ferry Street after a report that a person had been shot.  At the scene, officers found two victims.  One victim had been shot in the left elbow and was bleeding heavily, and the other victim was bleeding from the nose. 

The investigation, which has included witness interviews, DNA evidence, ballistics evidence and footage from a surveillance video, revealed that Richardson and Thomas Johnson attacked the two victims after they exited a convenience store in an attempt to steal marijuana and money from the victims.  Johnson shot one of the victims in his elbow and Richardson struck the other victim in the face with a gun.

Officers apprehended Richardson near the scene of the robbery.  When Richardson was found, he was bleeding from a gash to his hand where one of the victims had slashed him with a knife in self-defense.  Johnson was arrested on July 28, 2016, during a motor vehicle stop.  At the time of his arrest, Johnson possessed the firearm he used during the robbery.

Richardson has been detained since his arrest.  On January 31, 2018, he pleaded guilty to one count of Hobbs Act Robbery and one count of carrying a firearm in furtherance of a crime of violence.

Johnson, of New Haven, pleaded guilty to related charges on April 4, 2018.  On October 11, 2018, he was sentenced to 156 months of imprisonment.

This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Firearms, Tobacco and Explosives.  The case was prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.

         GRAND RAPIDS, MICHIGAN – Shaun Michael Cook, 31, of Lansing, Michigan, was sentenced to 102 months in federal prison for his role in a series of Lansing area robberies, U.S. Attorney Andrew Birge announced today. Cook and his codefendants, Donald Charles Westmoreland and Shackeem Louis Jones, committed a series of armed robberies of various businesses in the Lansing metropolitan area from November 2016 through May 2017. Cook, Jones and Westmoreland each pleaded guilty earlier this year to interference with commerce by robbery and brandishing a firearm. United States District Judge Janet T. Neff, who sentenced Cook, sentenced Westmoreland to 87 months in prison and Jones to 96 months. She ordered Cook to pay $2,139.21 in restitution and Jones and Westmoreland to pay $4,739.21.

          "Reducing violent crime rates is a priority for this office as well as the Department of Justice," said U.S. Attorney Andrew Birge. "Repeated violent behavior involving firearms will be met with increased law enforcement attention, swift justice, and severe punishment."

          During most of these robberies, two of the men would enter a business, point a gun at the employees and customers, demand money, and order everyone to the ground. During some of the robberies, the men destroyed the businesses’ telephones or stole cell phones from employees in order to prevent calls for help. At sentencing, Judge Neff attributed the following robberies to this group (all occurred in the Lansing area unless otherwise indicated):

• November 16, 2016: Cook and Jones robbed a Subway restaurant on Saginaw Highway;

• December 18, 2016: Cook, Jones, and Westmoreland robbed a Subway restaurant on Larch Street;

• December 24, 2016: Cook and Jones robbed a Subway restaurant on Grand River Avenue;

• December 27, 2016: Cook, Jones, and Westmoreland robbed a Beauty Max beauty supply store on West Saginaw Highway;

• December 27, 2016: Cook, Jones, and Westmoreland robbed a Citgo Gas Station near Wildwood Avenue in the Jackson, Michigan area;

• December 28, 2016: Cook, Jones, and Westmoreland robbed a Subway on East Saginaw Highway;

• December 29, 2016: Jones and Westmoreland robbed a Biggby coffee shop on Elmwood Road;

• January 10, 2017: Jones and Westmoreland robbed a Subway on East Lake Lansing Road;

• January 23, 2018: Jones and Westmoreland robbed a Family Dollar store on South Pennsylvania Avenue;

• March 13, 2017: Jones and Westmoreland robbed an Admiral gas station on West Saginaw Highway;

• March 15, 2017: Jones and Westmoreland robbed a Quality Dairy convenience store on Waverly Road;

• March 27, 2017: Jones and Westmoreland robbed a Little Caesars pizzeria on East Grand River;

• April 27, 2017: Jones robbed a Jimmy John’s restaurant on East Grand River Avenue; and

• May 1, 2017: Jones robbed a Little Caesar’s pizzeria on East Grand River Avenue.

          The case was investigated by the Federal Bureau of Investigation, with assistance from the Eaton County Sheriff’s Office, the Lansing Police Department, the Lansing Township Police Department, the Meridian Township Police Department, and the Michigan State Police. Assistant U.S. Attorney Alexis M. Sanford handled the prosecution.

END

SALT LAKE CITY – A federal indictment unsealed Friday charges Daron Howell Fordham, age 49, of Las Vegas with six counts of mail fraud in connection with what the indictment alleges was a direct mail fraud scheme that defrauded hundreds of investors across the country, including many elderly and disabled individuals.

According to the indictment, Fordham, aka Southboy, Daron Destiny, Paul Park, James Parker, Daron Howell and Darren Fordham, set up a mailbox at a UPS Store in Park City using the name Park Publishers and Distributors.  He paid a printing service in California to send out hundreds of mailers soliciting people to invest in his direct mail program which had several variations.  The mailers offered an opportunity to make money through a “direct partner program” called “Paul Park’s Profit Program,” listing a Park City address as the company address for responses. 

The indictment alleges Fordham’s mailer induced individual investors to send money to the address with fraudulent claims and guarantees, including telling individuals they could make a 976 percent return (or more) in less than 90 days without doing any work. “All you have to do is invest in the printing and mailing of our hot-selling FREE CRUISE FOR TWO VOUCHERS (like the one included with this letter) that are used by businesses all across the country.  WE DO ALL THE WORK! You decide how many Mailing Spots you want now and you’ll receive your Principal Check sand PROFIT Check in less than 90 days.  Trust me.  You’ll be upset if you miss this one.”

He told investors, the indictment alleges, they could invest $500 and get a “whopping gross return of $5,570 with $5,070 of it being PURE PROFIT FOR You.” 

The indictment further alleges that between January and November 2014, Fordham negotiated or caused to be negotiated at least $1,596,642.14 in checks and money orders related to eight fraudulent promotional schemes, including at least $203,866.25 through the Park Publishers fraudulent promotional mailer scheme.

When investors requested refunds or on the date of the promised dividend payment, Fordham provided customers a previously unmentioned gift card voucher equal to the investment, which could only be used toward an additional business venture by Park Publishers or its affiliate partners.  He also provided a full credit refund certificate, which investors could not redeem for any monetary value, good or service.  Eventually, Fordham closed the Park City mailbox so that victims’ letters requesting a refund or inquiring about their promised return on their investment were returned as undeliverable.  An 800-number was also disconnected, leaving victims unable to contact Fordham, the indictment alleges.

Fordham is charged with six counts of mail fraud in the indictment.  He was arrested in Las Vegas where he had an initial appearance on the charges and was released on conditions.  Fordham was arraigned on the charges Tuesday morning in federal court in Salt Lake City.  Chief Magistrate Judge Paul M. Warner presided at the hearing.  He entered a plea of not guilty to the six counts in the indictment.  Trial was set for Jan. 28, 2019.

Federal prosecutors are seeking detention in the case and are asking U.S. District Judge Dee Benson to review the Nevada magistrate’s decision to release Fordham.  Judge Benson will hear the appeal Tuesday at 2 p.m.

Each count of mail fraud carries a potential 20-year sentence.

An indictment is not a finding of guilt.  Individuals charged in indictments are presumed innocent unless or until proven guilty in court.

BOSTON – A Dominican national pleaded guilty today in federal court in Boston to her role in a widespread heroin and fentanyl conspiracy.

Isis Y Lugo-Guerrero, 46, a Dominican national residing in Dorchester, pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and cocaine. U.S. District Court Judge Indira Talwani scheduled sentencing for March 6, 2019. Lugo-Guerrero was arrested on Feb. 14, 2017, and released from custody on March 2, 2017, on $10,000 unsecured bond. The first day of her week-long trial was scheduled to begin on Sept. 10, 2018, but she failed to appear in court, and a warrant was issued for her arrest. She was arrested on Oct. 3, 2018.

Lugo-Guerrero is the sister of Jose Antonio Lugo-Guerrero, the convicted leader of a Boston-based heroin and fentanyl trafficking organization. Isis Lugo-Guerrero conspired with her brother and others by regularly obtaining heroin and cocaine from him and by supplying him with substances to cut his drugs to make additional profit.

Jose Antonio Lugo-Guerrero pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, more than 400 grams of fentanyl, and more than five kilograms of cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime. He faces a mandatory minimum sentence of 15 years and up to life in prison. He is scheduled to be sentenced on Nov. 27, 2018.

 The charge of conspiring to distribute heroin, fentanyl, and cocaine provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Fall River Police Chief Albert F. Dupere; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William Gross; Bridgewater Police Chief Christopher Delmonte; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

Bangor, Maine:  United States Attorney Halsey B. Frank announced that Frankie Dejesus, 28, of Rochester, New York, pled guilty in U.S. District Court to conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.” 

According to court records, between June 2015 and March 2017, Dejesus conspired with others to acquire heroin, fentanyl and crack in Rochester and to distribute it in Central Maine. The defendant was sent to Central Maine to distribute the drugs while residing with several Central Maine residents who were paid in heroin and crack for their participation.

The defendant faces up to 20 years in prison, a $1,000,000 fine, and between three years and life on supervised release.

The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.

Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Kaycee White, 22, of Camden, South Carolina, was sentenced to 20 years in federal prison for kidnapping, carjacking, robbery, and firearm offenses.

Evidence presented to the court showed that White was responsible for a home invasion and armed robbery in Kershaw County in April and May 2016. During the home invasion, White entered a home with a sawed-off shotgun, held residents at gunpoint, and forced them into their vehicle. Once in the vehicle, White forced the victims to drive him to an ATM, where he demanded that a victim withdraw money and provide it to him. Fortunately, White left the scene after receiving the money and none of the victims were physically harmed.

Approximately two weeks later, White robbed a gas station located in Camden. During the robbery, White entered the station and held the clerk at gun point with a sawed-off shotgun, threatening to kill the clerk if he did not receive money. Ultimately, the clerk provided money to White and White ran from the store. 

On January 10, 2018, White pled guilty to Kidnapping, Carjacking, Hobbs Act Robbery, and Use of a Firearm in Furtherance of a Crime of Violence.  Senior United States District Judge Joseph F. Anderson sentenced White to 240 months in federal prison, to be followed by a 3-year term of court-ordered supervision.  There is no parole in the federal system.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Camden Police Department, the Kershaw County Sherriff’s Office, and the South Carolina Law Enforcement Division. Assistant United States Attorney Will Lewis of the Columbia office prosecuted the case.

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BOSTON - A Salvadoran national pleaded guilty today in federal court in Boston to failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA).

Melvin Velasquez, 34, pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Feb. 28, 2019. Velasquez was charged by complaint in August 2018 and has been in custody since.  

In 2007, Velasquez was convicted in New York of one count of rape in the third degree and sentenced to eight months in jail. Velasquez was subsequently required to register as a sex offender in any jurisdiction where he resided or worked. Velasquez, who was determined to be illegally present in the United States, was sentenced on the rape charge, and, upon completion of his sentence in 2008, deported to El Salvador.

Sometime thereafter, Velasquez returned to the United States and assumed a false identity. In May 2018, Velasquez, using his alias, was arrested and charged with various motor vehicle violations. Velasquez’s fingerprints were obtained and found to match the prints in his A-file and from his 2007 New York rape conviction. Law enforcement then queried the Massachusetts Sex Offender Registry Board and determined that Velasquez had not registered, as required by law, in Massachusetts.

The charge of failure to register provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000 fine. Velasquez will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; United States Marshal John Gibbons of the District of Massachusetts; and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.