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Rapid City Man Sentenced for Escape and Failure to Register as a Sex Offender

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United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Escape and Failure to Register as a Sex Offender was sentenced on November 26, 2018, by U.S. District Judge Roberto A. Lange.

Brady Makes Room For Them, age 34, was sentenced to 20 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.

Makes Room For Them was indicted by a federal grand jury for the Escape charge on April 19, 2016, and on the Failure to Register as a Sex Offender on May 17, 2016.  He pled guilty on September 20, 2018.

The convictions stem from the same incident, the Escape charge occurred on April 4, 2016, and the Failure to Register as a Sex Offender violation occurred on April 7, 2016.  On April 4, 2016, Makes Room For Them escaped from custody of the Bureau of Prisons at the Community Alternatives of the Black Hills (CABH), where he was lawfully confined upon conviction for a federal felony offense.  Makes Room For Them left the CABH and did not return to the facility as required. Makes Room For Them was convicted of Abusive Sexual Contact in September 2005.  As a result of this conviction, he is required to register as a sex offender. Makes Room For Them was aware of his obligation to update his sex offender registration and failed to do so.  Following his escape from CABH, Makes Room For Them did not update his registration.

This case was investigated by the U.S. Marshals Service.   Assistant U.S. Attorney Michael J. Elmore prosecuted the case.

Makes Room For Them was immediately turned over to the custody of the U.S. Marshals Service.


Rapid City Man Sentenced for Internet Crime

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United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Transfer of Obscene Material to a Minor was sentenced on November 19, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.

Christopher James Perry, age 37, was sentenced to 12 months in federal prison, followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.  Perry also may be required to register as a sex offender under the Sex Offender Registration and Notification Act.

Perry was charged on February 21, 2018.  The conviction stems from Perry sending an obscene image of himself to someone he believed to be a 15 year-old girl via the internet, in August 2017 at Rapid City.

The case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.

Rosebud Man Sentenced for Firearm Conviction

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United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person, was sentenced on November 26, 2018, by U.S. District Judge Roberto A. Lange.

Antonio Siers, age 22, was sentenced to 14 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, forfeiture of two firearms, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Siers was indicted by a federal grand jury on May 15, 2018.  He pled guilty on September 5, 2018.

The conviction stemmed from an incident that occurred on July 12, 2017, where Siers, being an unlawful user of and addicted to a controlled substance, knowingly possessed two firearms. Law enforcement made contact with Siers and a co-defendant during the middle of a drug transaction, where the 2 firearms and 14 grams of methamphetamine were seized.

Drug trafficking is an inherently violent activity.  Firearms are tools of the trade for drug dealers.  It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.

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.  The Department of Justice reinvigorated PSN in 2017 as part of its 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.

This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.

Siers was immediately turned over to the custody of the U.S. Marshals Service.

Iowa Man Sentenced for Cyberstalking and Failure to Pay Child Support

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United States Attorney Ron Parsons announced that a Council Bluffs, Iowa, man convicted of Cyberstalking and Failure to Pay Legal Child Support was sentenced on November 19, 2018, by U.S. District Judge Karen E. Schreier.

Daniel Lee Vincent, Jr., age 32, was sentenced to 71 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.

Vincent was indicted by a federal grand jury on November 7, 2017.  He pled guilty on August 30, 2018.

In February 2017, Vincent posted advertisements on the internet website Craigslist for the Sioux Falls location, that included a previous intimate partner’s name, employment location, and cell phone number.  The advertisements depicted nude photos of the female, claimed she wanted to have sex, and requested photos from interested men.  The victim reported the matter to the Sioux Falls Police Department after strange men started sending naked pictures of themselves to her phone and started showing up at her place of employment.

Vincent previously had a child with the victim, but failed to pay court ordered child support, which exceeded $10,000.  At the time of sentencing, the child support arrearages were over $19,000.

This case was investigated by the Sioux Falls Police Department, the Federal Bureau of Investigation.  Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.

Vincent was immediately turned over to the custody of the U.S. Marshals Service.

Parmelee Man Indicted for Failure to Register as a Sex Offender

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

Lionel Eugene Roubideaux, age 55, was indicted on October 16, 2018.  He appeared before U.S. Magistrate Judge Mark A. Moreno on November 27, 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.

Roubideaux was convicted of Aggravated Sexual Abuse in December 1987.  As a result of this conviction, he is required to register as a sex offender for his natural life.  It is alleged that between March 17, 2018 and August 14, 2018, Roubideaux, 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 Roubideaux 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.   

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

Eagle Butte Woman Sentenced for Larceny and Failure to Appear

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United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Larceny and Failure to Appear was sentenced on November 26, 2018, by U.S. District Judge Roberto A. Lange.

Angel Taylor, age 32, was sentenced to 9 months in federal prison on the Larceny charge, and an additional month in prison on the Failure to Appear charge.   After being released from custody, Taylor will be on supervised release for 2 years.  She was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.

Taylor was indicted by a federal grand jury on August 16, 2017, for the Larceny charge, and on June 12, 2018, for the Failure to Appear charge.  She pled guilty to both charges on September 5, 2018.

The Larceny conviction stemmed from an incident on February 5, 2017, when Taylor stole a pickup and personal property with a value of more than $1,000.00, from an individual.

The Failure to Appear conviction stemmed from an incident on March 21, 2018, when Taylor was summoned to appear before U.S. Magistrate Judge Mark A. Moreno for a scheduled hearing on her Larceny charge and failed to appear for court as directed.

This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the U.S. Marshals Service.  Assistant U.S. Attorney Jay Miller prosecuted the case.

Taylor was immediately turned over to the custody of the U.S. Marshals Service.

Sioux Falls Man and Woman Charged with Distribution Of a Controlled Substance Resulting in Serious Bodily Injury

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United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man and a Sioux Falls, South Dakota, woman have been indicted by a federal grand jury for Distribution of a Controlled Substance Resulting in Serious Bodily Injury.

Michael Wayne Cooper, age 57, was indicted on November 6, 2018.  He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 27, 2018, and pled not guilty to the Indictment.

Darcy Ranee Hoff, age 43, was indicted on November 6, 2018.  She appeared before U.S. Magistrate Judge Veronica L. Duffy on November 20, 2018, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to life in federal prison and/or a $1,000,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on or about August 11, 2018, Cooper and Hoff knowingly and intentionally distributed fentanyl which resulted in serious bodily injury to a victim.  Fentanyl is a Schedule II controlled substance.

The charge is merely an accusation and Cooper and Hoff are presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Drug Enforcement Administration.  Assistant U.S. Attorney John E. Haak is prosecuting the case.   

Cooper and Hoff were remanded to the custody of the U.S. Marshals Service pending trial, which has been set for January 29, 2019.

Former Richwood correctional officer pleads guilty to covering up physical assault of inmates

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MONROE, La. The Justice Department and U.S. Attorney David C. Joseph announced today that former Richwood Correctional Center officer Demario Shaffer pleaded guilty Monday in federal court for his role in a conspiracy to cover up the physical assault of five inmates by himself and other correctional officers in violation of the Constitutional prohibition against cruel and unusual punishment. 

Shaffer, 33, of Delhi, Louisiana, pleaded guilty to conspiring to falsify documents with the intent to obstruct and influence a matter within federal jurisdiction. Assistant Attorney General Eric Dreiband for the Civil Rights Division and David C. Joseph, U.S. Attorney for the Western District of Louisiana, made the announcement.

“A correctional officer who uses excessive force against an inmate and then falsifies official reports violates the Constitution and its provision to protect all incarcerated offenders from cruel and unusual punishment,” said Assistant Attorney General Eric Dreiband.  “The Justice Department will continue to aggressively prosecute such misconduct to ensure the integrity of our civil rights laws.”

“Correctional officers are not allowed to abuse prisoners,” said U.S. Attorney David C. Joseph.  “They must follow the law and not use their position of authority to assault those under their supervision.”

According to his guilty plea, Shaffer worked as a Sergeant at the Richwood Correctional Center in Monroe, where on October 30, 2016, he and other officers inflicted cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone.  Shaffer admitted that he conspired with the other officers to hide their conduct by submitting a false story in their official reports concerning the incident.

The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000. Shaffer is scheduled to be sentenced on May 1, 2019 by U.S. District Judge Terry A. Doughty of the Western District of Louisiana, who accepted the plea.

This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office, Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.


President And CEO Of Las Vegas Investment Company Convicted Of $1.5 Billion Ponzi Scheme

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LAS VEGAS, Nev.The former president and CEO of MRI International Inc. (MRI), a purported investment company and medical collections business located in Las Vegas, Nevada, and Tokyo, Japan, was convicted yesterday for his role in a $1.5 billion Ponzi scheme.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division made the announcement.

After a five-week jury trial before Chief Judge Gloria Navarro of the U.S. District Court for the District of Nevada, Edwin Fujinaga, 72, of Las Vegas, was found guilty of eight counts of mail fraud, nine counts of wire fraud and three counts of money laundering in connection with his Ponzi scheme. Sentencing is set for March 9, 2019. The jury returned the guilty verdict in under three hours.

Evidence presented during trial showed that from 2000 until 2013, Fujinaga fraudulently solicited over $1 billion in investments in MRI from over 10,000 Japanese residents, who wired their funds from Japan to bank accounts in Las Vegas under Fujinaga’s control. Fujinaga approved and disseminated marketing materials that promised investors that their funds would only be used for purchasing medical claims and that an escrow agent would ensure that MRI used investor funds for only that purpose. In truth, Fujinaga spent less than two percent of investor funds to purchase medical claims. Instead, Fujinaga used the vast majority of new investors’ funds to pay off old investors. He used the balance of investors’ funds for impermissible business and lavish personal expenses, such as a private jet; a mansion on a Las Vegas golf course; real estate in Beverly Hills, California wine country, and Hawaii; and luxury cars from Bentley, McLaren and Bugatti. When the Japanese government revoked MRI’s license to market securities in April 2013, MRI owed its investors more than $1.5 billion.

The case was investigated by the FBI. The Criminal Division’s Office of International Affairs, the Securities and Exchange Commission, the Japanese Financial Services Agency, the Ministry of Justice of Japan and the Ministry of Foreign Affairs of Japan provided substantial assistance in this matter. The case is being prosecuted by Trial Attorneys William Johnston and Danny Nguyen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez of the District of Nevada.

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Mexican National Man Pleads Guilty to Immigration Crime

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Defendant had one prior deportation to Mexico

BECKLEY, W.Va. – A Mexican national man entered a guilty plea to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Heriberto Tadeo faces up to two years of incarceration when he is scheduled to be sentenced on March 13, 2019.  Tadeo is also subject to deportation proceedings at the conclusion of any sentence.   Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).

“Our immigration laws must be enforced,” said United States Attorney Mike Stuart.  “Those who want to remain in this great country, must enter it legally, and abide by our laws.”

On October 17, 2018, Tadeo was found in Ronceverte, Greenbrier County, West Virginia by members of ICE after receiving a tip that individuals were in the country illegally and working in the area.  Pursuant to this investigation,  ICE agents approached Tadeo and he surrendered to them. Agents immediately confirmed that Tadeo was not in the United States legally, and took him into federal custody.

Tadeo’s fingerprints matched a prior encounter where he was found near Hidalgo, Texas and deported from the United States to Mexico in 2016.  Tadeo illegally reentered the United States prior to his capture in 2018.  Tadeo had not obtained permission to legally enter the United States and had not sought legal status or citizenship.  Tadeo also admitted to ICE agents that he was a Mexican citizen.

Assistant United States Attorney Erik S. Goes is responsible for the prosecution. United States District Judge Irene Berger presided over the hearing.

 

Follow us on Twitter:SDWVNewsandUSAttyStuart 

 
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Six MS-13 Members Charged with RICO Conspiracy

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BOSTON – Six members of the violent, transnational organization known as “La Mara Salvatrucha” or “MS-13” were indicted today in federal court in Boston with racketeering.

As alleged in the indictment, as part of the racketeering conspiracy, five of the six defendants participated in the murder of a teenage boy in Lynn, Mass., on or about July 30, 2018.    

The indictment charges the following members of the Sykos Locos Salvatrucha clique:

  1. Erick Lopez Flores, a/k/a “Mayimbu,” 29, of Lynn;
  2. Henri Salvador Gutierrez, a/k/a “Perverso,” 19, a Salvadoran national previously residing in Somerville;
  3. Eliseo Vaquerano Canas, a/k/a “Peligroso,” 19, a Salvadoran national previously residing in Chelsea;
  4. Jonathan Tercero Yanes, a/k/a “Desalmado,” 21, a Salvadoran national previously residing in East Boston;
  5. Marlos Reyes, a/k/a “Silencio,” 22, a Salvadoran national previously residing in Chelsea; and
  6. Djavier Duggins, a/k/a “Haze,” 29, of Lynn.

The indictment also mentions an unnamed juvenile, who has been separately charged in a sealed information, as required by federal law.

Duggins was arrested today and will appear in federal court on Nov. 29, 2019, at 3:30 p.m. The five defendants accused of murder are currently detained on state charges or in immigration custody, and will appear in federal court in the days ahead.

As alleged in court documents, on Aug. 2, 2018, law enforcement officers responded to Henry Avenue Playground in Lynn, where a civilian had encountered the dead body of a young boy lying in a wooded area. Based on the condition of the body, it appeared that the victim had been murdered a few days prior to when the body was discovered.

It is alleged that Lopez, Salvador, Vaquerano, Tercero, and Reyes murdered the victim with premeditated malice, and with extreme atrocity and cruelty. The evidence includes a recording of Salvador allegedly describing the murder in graphic detail, including how he, Vaquerano, Tercero, and Yanes stabbed the victim numerous times while Lopez assisted. The recording also described Duggins as being a leader of the clique. The victim was allegedly targeted because the gang believed the victim had been cooperating with law enforcement. 

“MS-13 is a ruthless, transnational gang operating in our backyard,” said United States Attorney Andrew E. Lelling. “This group routinely commits senseless acts of violence, including murder, to maintain control and instill fear. Dismantling MS-13 in Massachusetts and elsewhere is a top priority of the Department of Justice. Federal, state, and local law enforcement agencies will continue working together to investigate and hold MS-13 members responsible for these heinous crimes.”

“The murder of 17-year old Herson Rivas is another sobering example of the savagery of MS-13, the ruthlessness of its members, and the utter disregard they have for law and order, our communities, and the opportunities afforded to them while here in the United States. This barbaric behavior cannot and will not be tolerated, and law enforcement at all levels will continue to use all available resources, aggressively exploit all available intelligence, and work as one integrated team with the sole intention of preventing additional murders or future acts of violence,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “I commend the FBI's North Gang Task Force for their unwavering pursuit of MS-13, the tremendous work conducted by our federal, state and local law enforcement partners regarding this threat, and the proactive efforts undertaken to move and share intelligence, all in an effort to stem the flow of violence. There is no place in society for MS-13---their violence and tactics need to be stopped---and this gang must be dismantled at all levels.”

“Today’s enforcement action demonstrates our continued unrelenting commitment to take the fight to MS-13,” said Peter C. Fitzhugh, Special Agent in Charge, Homeland Security Investigations, Boston. “Working closely with our state, local and federal partners, HSI is determined to dismantle this organization to make our communities in Massachusetts a safer place to live.”

“The brutal violence that is the hallmark of MS-13 is well-documented, and this case was yet another example of the gang’s ruthlessness,” said Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police. “I am extremely proud of the superb work done by the MSP Gang Unit, the State Police Detective Unit for Essex County, and the North Shore Gang Task Force, in conjunction with our federal and local partners, to speak for Herson Rivas and to seek justice for his family by developing the evidence that led to these indictments.”

“These indictments represent an extraordinary collaboration among local, state and federal law enforcement officers who worked tirelessly to identify and apprehend those responsible for the brutal murder of a 17-year old in a city park where children play.” Essex District Attorney Jonathan Blodgett said. “This combined effort should serve as notice to those who engage in gang activity and indiscriminate violence, that we will not rest in our pursuit of justice on behalf of victims and our duty to protect the community from this scourge.”

“I would like to commend the members of the Lynn Police Criminal Investigation Division, the Essex County State Police Detectives Unit, and the FBI for their work on this investigation,” said Lynn Police Chief Michael Mageary. “This was a very sensitive investigation from the beginning and because of the efforts of the investigators those responsible will be brought to justice. Our condolences go out to the Rivas family for their loss.”

According to court documents, MS-13 is a violent street gang whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence against rival gang members to gain promotions and to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder rival gang members whenever possible, and to attack and murder those suspected of cooperating with law enforcement. MS-13 often recruits younger members from schools and communities with large immigrant populations from Central America.

The charge of RICO conspiracy typically provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000.  However, Lopez, Salvador, Vaquerano, Tercero, and Reyes face up to life in prison because their racketeering activity involved murder.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Lelling; FBI Boston SAC Shaw; HSI Boston SAC Fitzhugh; MSP Colonel Gilpin; Essex DA Blodgett; and Lynn Police Chief Mageary made the announcement today. The  Boston, Chelsea, and Peabody Police Departments provided assistance with the investigation.

The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.         

Queens Man Pleads Guilty to Stolen Identity Refund Fraud

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SYRACUSE, NEW YORK – Miles Bailey, age 53, of Queens, New York, and formerly of Albany, pled guilty today to conspiring to commit theft of public money, theft of public money, and aggravated identity theft.  Bailey was set to stand trial beginning today in Syracuse.

The announcement was made by United States Attorney Grant C. Jaquith and James Robnett, Special Agent in Charge of the New York Field Office of Internal Revenue Service (IRS)-Criminal Investigation.

As part of his plea, Bailey admitted that between March 2011 and July 2014, he and others knowingly submitted fraudulent income tax returns to the IRS on behalf of at least 50 individual victims.  The returns falsely claimed that these individuals were entitled to income tax refunds from the federal government.  The conspirators obtained the resulting fraudulent tax refund checks from the Department of the Treasury by mail.  Bailey then deposited the checks into his various bank accounts and spent or distributed the proceeds. 

Bailey faces at least 2 years and up 10 years in prison, and up to 3 years of post-imprisonment supervised release, when Senior United States District Judge Frederick J. Scullin Jr. sentences him on May 20, 2019.  Bailey will also be required to pay a forfeiture money judgment of approximately $1,963,991, which was the amount of fraudulent proceeds that he deposited into his bank accounts.

Two co-conspirators, Eric Thorne, age 50, of Albany, and James Simmons, age 50, of Rensselaer, previously pled guilty to conspiracy to commit theft of public funds and will be sentenced on May 21, 2019. 

This case was investigated by IRS-Criminal Investigation, the Town of Colonie Police Department, the Town of Niskayuna Police Department, the City of Albany Police Department, the New York State Police, and the United States Postal Inspection Service. 

This case is being prosecuted by Assistant U.S. Attorney Megan Kistler.

Indictment Charges New Haven Man with Firearm and Drug Offenses

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John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a three-count indictment charging KEVIN McFARLANE, also known as “Jabari McBurn” and “Dexter Creque,” 41, of New Haven, with firearm possession and crack cocaine distribution offenses.

The indictment was returned on November 19, 2018.  McFarlane appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.  He has been detained since his arrest on related state charges on July 11, 2018.

The indictment alleges that, on July 8, 2018, in New Haven, McFarlane possessed crack cocaine that he intended to distribute, and a Glock model 43 9mm semiautomatic handgun.

The indictment further alleges that McFarlane was convicted in Connecticut state court, in October 2004, of sale of a hallucinogen/narcotic, and in Florida state court, in October 2007, of murder in the second degree.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

The indictment charges McFarlane with one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”), an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; one count of possession of a firearm by a convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory consecutive term of imprisonment of at least five years.

U.S. Attorney Durham stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the New Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.

This prosecution has been brought though Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.

Former New Jersey Lawyer Admits Role In Money Laundering Scheme

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CAMDEN, N.J. – A former New Jersey lawyer today admitted his role in a money laundering scheme, U.S. Attorney Craig Carpenito announced.

Michael W. Kwasnik, 49, of North Miami Beach, Florida, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count 12 of a superseding indictment, charging him with money laundering.

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

Kwasnik was previously associated with a law firm, Kwasnik, Rodio, Kanowitz and Buckley P.C. – and its successor firm, Kwasnik, Kanowitz and Associates P.C. – with offices in Cherry Hill, New Jersey, and Philadelphia. His father, and co-defendant, William M. Kwasnik, of Marlton, New Jersey, owned and operated an insurance company, Abby Grant, with offices in Cherry Hill and Lakewood, New Jersey.

In April 2011, Michael Kwasnik induced a client to establish an irrevocable family trust to settle his mother’s estate, with promises that any money deposited in the trust would not be invested, but rather held for the client’s benefit. With the client’s consent, Michael Kwasnik established the trust and named himself as the trustee. Based on Michael Kwasnik’s promises, the client gave Michael Kwasnik $125,774, which the client received after his mother’s death, to deposit in the trust account. Michael Kwasnik deposited the money into the trust account and the next day, transferred $125,000 to Abby Grant’s bank account, and then to the Kwasnik, Rodio, Kanowitz and Buckley P.C. bank account, without the client’s knowledge or permission. Michael Kwasnik admitted that he did so to conceal and disguise the source of the money and that it was the proceeds of a mail fraud or wire fraud scheme.

The money laundering offense to which Michael Kwasnik pleaded guilty carries a maximum penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense. Under terms of the plea agreement, he must also forfeit $125,000 and pay restitution.

The charges against William Kwasnik remain pending, and he is presumed innocent unless and until proven guilty.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster, Philadelphia Division, and special agents of IRS Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, Newark Division, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Deborah Prisinzano Mikkelsen and Jason Richardson of the U.S. Attorney’s Office in Camden.

Defense counsel:
Michael Kwasnik: Richard Klineburger Esq., Haddonfield, New Jersey
William Kwasnik: Daniella Gordon Esq., Moorestown, New Jersey

Felon Convicted of Threatening U.S. Postal Service Letter Carrier and Firearm Possession in Milwaukee

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Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on November 27, 2018, a jury found David E. Polnitz, Jr., (age: 39) of Milwaukee, guilty of illegally possessing a firearm and forcibly assaulting, impeding, intimidating or interfering with a United States Postal Service (USPS) Letter Carrier.

On June 27, 2017, a USPS Letter Carrier was attempting to deliver mail when Polnitz’s unrestrained pit bull charged the Letter Carrier. Fearing for his safety, the Letter Carrier followed procedure and sprayed the pit bull with USPS-issued dog spray. Polnitz upon being notified by his spouse of the incident, ultimately pointed a Taurus, model PT738, semi-automatic .380 pistol at the Letter Carrier. The Letter Carrier identified Polnitz, among other ways, by his distinctive “Pepsi blue” contact lenses.

Polnitz was previously convicted of second degree recklessly endangering safety and robbery with use of force. He is awaiting sentencing by United States District Court Judge Pamela Pepper. He faces a maximum term of imprisonment of 30 years, a maximum term of supervised release of six years, and a maximum fine of $500,000 for being a convicted violations of Title18 United States Code §§ 111, 922(g)(1), and 924(a)(2).

“Letter Carriers should not have to fear violence as they deliver mail in our neighborhoods,” said United States Attorney Krueger.  “The Department of Justice will aggressively prosecute anyone who threatens harm to federal employees.  We commend the law enforcement agencies for their excellent work in bringing justice to this matter.”

“The safety and protection of postal employees is one of our highest priorities,” said Inspector in Charge Craig Goldberg of the Chicago Division of the U.S. Postal Inspection Service. “The guilty convictions in this case send a strong message that threatening or intimidating a postal worker will not be tolerated.”

The case was investigated by the Milwaukee Police Department and the U.S. Postal Service Inspector General’s Office of Investigations, and prosecuted by Assistant United States Attorneys Zachary Corey and Benjamin Taibleson.

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For additional information contact:

Public Information Officer Dean Puschnig, 414-297-1700


New Jersey Man Sentenced To 30 Months’ Imprisonment For Straw Purchasing Of Firearms

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SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Laquan Hassan Croswell, age 25, of Paterson, New Jersey, was sentenced today by U.S. District Court Judge James M. Munley to 30 months’ imprisonment on charges related to straw purchase of firearms.

According to United States Attorney David J. Freed, the investigation began when a firearm purchased by Croswell was recovered in Paterson, New Jersey, in connection with an armed robbery.  Agents determined that Croswell had purchased in excess of thirty firearms from firearms dealers both in Pennsylvania and Florida.  Croswell then sold many of the firearms without filing the required transfer paperwork for each firearm transaction.  In essence, Croswell lied when he purchased these firearms, stating on the ATF Form 4473 purchase documents that he was the true purchaser of the firearms when he knew that he was purchasing them to be resold to unidentified persons.  Several of the firearms have yet to be recovered.

Judge Munley also ordered Croswell to pay a $100 special assessment, and be placed on two years of supervised release once released from federal prison.  All the firearms purchased by Croswell have been forfeited to the government. 

The case was investigated by the ATF and is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley

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. 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.         

 

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New Jersey Man Sentenced To 46 Months’ Imprisonment For Bank Fraud

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SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Patrick Sutherland, age 29, of Roselle, New Jersey, was sentenced on November 27, 2018, by U.S. District Court Judge Malachy E. Mannion to 46 months’ imprisonment for bank fraud.

According to United States Attorney David J. Freed, from December 2014 through August 2016, Sutherland was involved in a scheme during which $1 postal money orders were purchased from post offices in the Scranton, Pennsylvania area, and altered to reflect $1,000.  The postal money orders were then deposited into bank accounts controlled by members of the conspiracy, and the cash withdrawn before the banks could identify the fraud.  Judge Mannion also ordered Sutherland to pay $282,779 in restitution, a $100 special assessment, and to be placed on 3 years of supervised release upon his release from prison.

The case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Todd K. Hinkley

           

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Russian National Charged in Hacking Scheme Targeting Pittsburgh National Golf Course

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PITTSBURGH - A Russian national has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, computer fraud and money laundering, United States Attorney Scott W. Brady announced today.

The five-count indictment, returned on Nov. 27, named Ilya Kulkov, of Barnaul, Russia, as the sole defendant.

According to the indictment presented to the Court, between January 22, 2017 and February 2, 2017, Kulkov hacked into a desktop computer located at the Pittsburgh National Golf Course in Gibsonia, Pennsylvania, from his home in Russia. Once Kulkov had control of Pittsburgh National’s computer, he engaged in a systematic pattern of internet fraud by buying and exporting products from the United States to Barnaul, Russia.

"Over the past year, we have aggressively investigated and prosecuted cyber criminals, both foreign and domestic," said U.S. Attorney Brady. "The use of computers and the internet is now part of everyone’s daily life. From our prosecution of officers of the Russia intelligence directorate to the hacking of routers in 43 countries to internet fraud targeting our elderly residents, our office will go to the ends of the earth to hold cyber criminals accountable and protect the citizens of western Pennsylvania."

The law provides for a sentence of not more than twenty years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.

The Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Jackson Man Sentenced to 15 Years in Prison under Project EJECT for Being an Armed Career Criminal Possessing a Firearm

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Jackson, Miss – Loucious Collins, 37, of Jackson, was sentenced Tuesday, by U.S. District Judge David C. Bramlette III, to 15 years in prison followed by five years of supervised release for being an armed career criminal in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI) in Mississippi. Collins was also required to forfeit the firearm.

On June 8, 2017, the FBI assisted the Mississippi Alcohol Beverage Control in executing a search warrant a V Live Club in Jackson. During the search of the business, Collins, an employee of the club, was questioned by a Mississippi Alcohol Beverage Control officer and admitted to being in possession of a firearm and to being a convicted felon. Because Collins has four previous felony convictions for house burglary, one previous conviction for business burglary, and one previous conviction for possession of a deadly weapon while an inmate at the Delta Correctional Facility, he is classified as an Armed Career Criminal under the Federal Sentencing Guidelines. On February 6, 2018, he was charged in a federal indictment with being a convicted felon in possession of a firearm in violation of 18 U.S.C. §922(g)(1). He pled guilty on August 28, 2018.

The Federal Bureau of Investigation and the Mississippi Alcohol Beverage Control investigated the case. It is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for"Empower Jackson Expel Crime Together." PSN is 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. Former 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.

 

University Of Puerto Rico Settles Misuse Of Grant Funds Case

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SAN JUAN, Puerto Rico– On November 21, 2018, the United States Government recovered the sum of $1,772,790.00 from the University of Puerto Rico (UPR) as part of a settlement agreement reached in connection to claims of misuse of grant funds provided to the UPR by the National Aeronautics and Space Administration (NASA), Department of Energy (DOE), and the National Science Foundation (NSF). The investigation revealed that the UPR did not comply with the time and effort reporting requirements of salaries and wages to ensure that payroll for the various grants was correctly and appropriately charged for the 2011 calendar year. The UPR provided various certifications asserting compliance with grant rules, when in fact, their records failed to reconcile the budget amounts reported to NASA, DOE, and NSF. Under the False Claims Act, Title 31, United States Code, Sections 3729, et seq., for the period of the covered conduct, the United States can recover up to three times the amount of loss and civil monetary penalties ranging from $5,500.00 to $11,000.00 per claim, in addition to debarment from future participation in federal funding. 

The Office of the Inspector General of NASA, DOE and NSF involved in this investigation are deeply committed to fighting fraud, waste and abuse, and ensuring that federal funding is used for its intended purposes and recipients. 

“The NASA Office of Inspector General will continue to aggressively investigate any attempt to defraud NASA grants, contracts, and operations,” said NASA Inspector General Paul Martin. “The NASA OIG appreciates the cooperative efforts of the entire investigative and prosecution team during this multi-year investigation and congratulates the team for reaching a final civil settlement in this matter.”

“It is imperative that federal award recipients use grant money appropriately, and that they track and support their award expenditures using effective accounting systems and accurate time and effort reports,” said Allison Lerner, Inspector General of the National Science Foundation. “The NSF Office of Inspector General is committed to vigorously pursuing oversight of taxpayer funds devoted to scientific research and I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”

“The U.S. Department of Energy Office of Inspector General is committed to ensuring the integrity of our grant recipients by holding accountable those who choose to engage in false claims and mischarging schemes. This settlement is the result of a joint investigation which protected the government from inflated claims. We appreciate the efforts of the Department of Justice in pursuing this matter and will continue to work collaboratively with our investigative partners to aggressively investigate those who seek to defraud government programs,” said Acting Inspector General April G. Stephenson.

“The United States Attorney’s Office will continue to investigate grant fraud matters on both Criminal and Civil grounds and will aggressively pursue actions against those who submit false claims to the United States,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “I commend the hard work and dedication of the Office of Inspector General and the prosecutorial team that handled the case.”

The matter was prosecuted by Assistant U.S. Attorney David O. Martorani-Dale, Affirmative Civil Enforcement Coordinator, and Assistant U.S. Attorney Hector E. Ramírez-Carbó, Chief of Civil Division.

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