CHARLESTON, W.Va. –  United States Attorney Mike Stuart issued the following statement after meeting with Attorney General William Barr:

“Today, I had the honor of meeting with Attorney General Barr at his office in Washington to discuss matters of critical importance to the people of West Virginia.  He understands West Virginia and our unique challenges. This Attorney General truly appreciates West Virginia and is committed to ending the opiate crisis, supporting law enforcement, and reducing crime for our families and communities. He is very supportive of my efforts in West Virginia to aggressively attack the drug scourge, violent crime, public corruption, health care fraud and other critical priorities. I look forward to working directly with Attorney General Barr and his team to advance the priorities of the Department of Justice and this Administration throughout the great state of West Virginia.  I believe it is fair to say that the people of West Virginia have a great friend and champion in Attorney General Barr.”

Follow us on Twitter:SDWVNewsandUSAttyStuart 

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Earlier today, in federal court in Central Islip, Brian Newton was sentenced to 19 years’ of imprisonment by United States District Judge Joseph F. Bianco following the defendant’s guilty plea on May 3, 2018 to transportation of child pornography in interstate and foreign commerce.  As part of his sentence, Newton must serve five years’ supervised release following his imprisonment, during which time he must remain registered as a sex offender and not have unsupervised contact with minors. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Newton, despite being a registered sex offender, again chose to victimize children by sharing images of their abuse with others online, conduct that is deserving of a substantial prison sentence and underscores a message of deterrence to others,” stated United States Attorney Donoghue.  “The protection of innocent children is a priority of utmost importance for this Office and our law enforcement partners.  We will continue to work tirelessly to ensure that those who victimize children will be arrested and prosecuted to the full extent of the law.”  Mr. Donoghue extended his grateful appreciation to the FBI New York Crimes Against Children Task Force for its investigative work and assistance. 

“Child pornography is not an abstract crime. It is a direct byproduct of the sexual abuse of innocent children – in this instance, including infants and toddlers,” stated FBI Assistant Director-in-Charge Sweeney. “And though he was already on probation for a prior child pornography conviction, Newton continued and even escalated his depraved actions, sharing child pornography while sexually soliciting minor children online. Today’s sentence provides a measure of justice for Newton’s victims, and protects those he sought to victimize. The FBI’s Human Trafficking and Child Exploitation Task Force and our partners are committed to investigating and prosecuting anyone who seeks to harm children.”

Newton, who at the time of the charged offense was on probation from a conviction in Suffolk County in 2014 for possession of child pornography, was caught trading child pornography including sadistic depictions of the sexual abuse of infants and toddlers.  During the execution of a search warrant at his residence, law enforcement seized Newton’s large collection of child pornography, including hundreds of videos and thousands of images.  After his arrest, Newton admitted engaging in conversations with minors over internet chat platforms, as well as sending nude images of himself to minors and soliciting nude images from minors.    

This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse.  Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. 

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Lara T. Gatz and Michael R. Maffei are in charge of the prosecution. 

The Defendant:

BRIAN JOSEPH NEWTON
Age:  38
East Northport, New York

E.D.N.Y. Docket No. 17-CR-341 (JFB)

Portland, Maine:  United States Attorney Halsey B. Frank announced that the First Circuit Court of Appeals yesterday affirmed the conviction and 20 years plus life in prison sentence of Gregory Owens, 62, formerly of Londonderry, New Hampshire, imposed in July 2016 in U.S. District Court by Judge Nancy Torresen. After a 10-day jury trial in February 2016, Owens was convicted of interstate domestic violence and using and discharging a firearm during and in relation to a crime of violence in connection with a home invasion shooting in Saco, Maine on December 18, 2014.

According to trial testimony, Owens drove from New Hampshire to Maine intending to kill his wife who was an overnight guest at the home of friends living in Saco. During the home invasion, Owens shot his wife and the male home owner with a 9mm pistol. Both survived their injuries.   

On appeal, Owens primarily challenged the district court’s suppression rulings, the sufficiency of the evidence at trial, and his sentence.

“This was an egregious crime by a remorseless criminal,” said U.S. Attorney Halsey B. Frank.  “As the First Circuit recognized, it was solved by great police work.  The Saco (ME) Police Department; the Londonderry (NH) Police Department; the Maine and New Hampshire State Police; the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine State Police Crime Laboratory are all to be commended for their great work in solving this difficult case.”

This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Portland, Maine:  United States Attorney Halsey B. Frank announced that Travis Jonathon Card, 38, of Westbrook, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to five years and ten months in prison and three years of supervised for interfering with commerce by robbery.  The charges arose from a series of robberies and attempted robberies in the greater Portland area in March and April, 2018. Card pled guilty to the charges in August, 2018.

According to court records, the defendant, brandishing a pellet gun, robbed the Riverton Gas Station, in Portland, on March 20; robbed the Lil’ Mart Gas Station, in Falmouth, on March 21; robbed Good Things Variety, in Westbrook, on March 22; robbed Express Mart, in Cumberland, on March 22; robbed the Daily Grind, in Westbrook, on March 24; attempted to rob China Taste, in Portland, on March 25; robbed Subway, in Westbrook, on March 26; attempted to rob Aroma Joe’s, in South Portland, on March 27; robbed China Eatery, in Old Orchard Beach, on March 29; robbed Gulf Mart, in Westbrook, on April 6; and attempted to rob Moby Dick Variety, in Old Orchard Beach, on April 11. 

“For weeks in 2018, the defendant terrorized the greater Portland area,” said U.S. Attorney Frank.  “There was no excuse for his behavior. Thanks to the outstanding work of law enforcement agencies, he has now been held accountable.”

The investigation leading to today’s sentencing was conducted by the FBI’s Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Portland, South Portland, and Lewiston Police Departments; in conjunction with the Westbrook, Falmouth, Cumberland, and Old Orchard Beach Police Departments. 

Portland, Maine:  Two individuals were charged in an indictment filed today for their roles in a multimillion-dollar scheme involving purported investments in a start-up financial technology company.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Halsey B. Frank of the District of Maine, Special Agent in Charge Joseph Bonavolonta of the FBI’s Boston Field Office and Special Agent in Charge Kristina O’Connell of the IRS Criminal Investigation (IRS-CI) in Boston made the announcement.

Michael A. Liberty, 58, of Windermere, Florida, and Paul E. Hess, 63, of Braintree, Massachusetts, were each charged in an indictment filed in the District of Maine with one count of conspiracy to commit wire fraud, four counts of wire fraud and one count of securities fraud.  In addition, Liberty was charged with one count of conspiracy to commit money laundering and three counts of money laundering.

The indictment alleges that, beginning in 2010, Liberty and Hess solicited investments in Mozido, a privately held financial technology start-up company that offered users an ability to make payments using their mobile phones.  Liberty and Hess allegedly raised millions of dollars from investors telling them, among other things, that their money would be used to fund Mozido’s business operations and that Hess was not being paid to raise the money.  The indictment alleges that a substantial amount of the money did not go to Mozido, that a portion of the money was diverted to pay Liberty’s personal expenses, and that Hess received commissions and other payments in return for the money he raised from investors.

The defendants face up to 20 years in prison and a fine of the greater of $250,000 or twice the gain or loss on the wire fraud charges and up to 20 years in prison and a $5,000,000 fine on the securities fraud charge.  Liberty faces up to 10 years in prison and a fine of the greater of $250,000 or twice the amount of criminally derived property involved in the transactions on the money laundering charges.  The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The FBI’s Portland, Maine Resident Agency and IRS-CI are investigating the case.  Trial Attorneys Michelle Pascucci and Matthew Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Donald Clark of the District of Maine are prosecuting the case. 

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.

Individuals who believe they may be a victim in this case should contact the Victim Witness Services Unit of the U.S. Attorney’s Office for the District of Maine at (207) 780-3257 for more information.

United States Attorney Richard W. Moore of the Southern District of Alabama announced today that Matthew Joshua Green of Clayton County, Georgia was sentenced to 96 months imprisonment for Possession of a Firearm by a Prohibited Person before Judge William H. Steele. Green had prior felony convictions which include aggravated battery, vehicular homicide, receiving stolen property, felony willful obstruction of law enforcement officers by use of threats or violence and possession of cocaine prior to possess of a firearm.

According to court documents, on April 18, 2018, a Baldwin County Sheriff’s Deputy conducted a traffic stop along Interstate 10 on Green for failing to maintain his lane of travel.  Green was on his cell phone and not following the deputy’s request to hang up and step out of the car. The deputy smelled the odor of marijuana coming from the car and witnessed loose marijuana in the car.  Because of Green’s behavior, the deputy attempted to conduct a pat down on Green for safety reasons.  While attempting to place handcuffs on Green, he began resisting arrest and tried to push the deputy into oncoming traffic. Due to Green’s behavior and what was witnessed by the deputy, a probable cause search was conducted of the vehicle wherein digital scales and marijuana were found in the car along with a loaded firearm. 

Due to Green’s attempts to resist arrest and push the deputy into interstate traffic, the Court applied a sentencing enhancement for reckless endangerment during flight.

Special Agents of the Federal Bureau of Investigation along with deputies of the Baldwin County, Alabama Sheriff’s office investigated the case and brought it to the U. S. Attorney=s Office for prosecution.  The prosecutor assigned to the case is Assistant United States Attorney Michael D. Anderson.

Orlando, Florida – A federal jury yesterday found Keith Kirchoff (41, Key West) guilty of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Kirchoff faces a maximum penalty of life in federal prison. A sentencing date has not yet been set. Kirchoff is the nineteenth person to be found guilty as a result of a joint FBI and DEA investigation into drug-trafficking organizations that supplied outlaw motorcycle clubs with distribution amounts of methamphetamine in the Middle District of Florida.

Kirchoff was indicted on August 9, 2018.

According to testimony presented at trial, in March 2018, Kirchoff conspired with members of the Pagans motorcycle club to deliver ounce quantities of methamphetamine to Pagans members located in Daytona Beach and Key West, Florida. On March 21, 2018, members of the Florida Highway Patrol pulled over a vehicle being driven by Kirchoff and found nearly ten ounces of methamphetamine and a loaded firearm.

This case was investigated by the FBI, the DEA, the Florida Highway Patrol, the Volusia Bureau of Investigation, the Volusia County Sheriff’s Office, and the Daytona Beach Police Department. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Geraldine Hart, Commissioner of the Suffolk County Police Department, announced today the unsealing of an indictment charging 11 defendants with 15 counts of participating in the sex trafficking of, and related conduct victimizing, at least 10 young women.  Nine defendants were arrested today and will be presented this afternoon before the Honorable Ona T. Wang, United States Magistrate Judge.  Two additional defendants are in state custody and will be presented in federal court on a future date.

U.S. Attorney Geoffrey S. Berman said:  “The alleged conduct of these 11 defendants against women is as callous as it is alarming.  Today’s indictment alleges they operated a pay-for-sex business with their clients, while they threatened, intimidated, and coerced their female ‘employees’ to participate in commercial sex acts for money.  The unconscionable crime of sex trafficking is a societal problem that disproportionally preys upon our communities’ most vulnerable: women and children.  If you have knowledge of sex trafficking crimes, you should immediately call 212-384-5000.”

FBI Assistant Director William F. Sweeney Jr. said:  “There is a common belief that the victims of human sex trafficking aren’t truly victims.  However evidence in this investigation shows the suspects allegedly used whatever means necessary to control and abuse these victims just to make money.  The FBI New York Child Exploitation and Human Trafficking Task Force not only goes after the pimps and others involved in human trafficking, but we do all we can to help those girls who are being sold to start their lives again.”

Suffolk County Police Commissioner Geraldine Hart said:  “The takedown of this alleged sex trafficking ring in Suffolk County is crucial in stopping predators who target the vulnerable for financial gain as well as support the victims in getting the necessary assistance they deserve.   The success of this operation is why we work with our law enforcement partners and I commend the commitment of our department’s Human Trafficking Investigations Unit, NYPD, and the FBI, which led the investigation.” 

As alleged, defendants LORENZO RANDALL, JUSTIN RIVERA, DWAYNE ANTHONY CONLEY, RICARDA DIAMOND, and BRIAN SMITH conspired to commit sex trafficking through force, threats of force, fraud, or coercion.  In furtherance of the conspiracy, RANDALL allegedly punched, choked, and spit on certain of the victims.  The indictment further alleges that RIVERA physically assaulted and brandished a dangerous weapon at a second victim. Allegedly knowing that this second victim was addicted to heroin, RIVERA withheld heroin from her unless she engaged in commercial sex acts at his direction and for his profit.  Similarly, CONLEY is alleged to have physically assaulted a third victim, who was also a heroin addict, and provided her with heroin in exchange for her engagement in commercial sex acts on his behalf.

DIAMOND allegedly conspired with RANDALL to transport a victim to locations where she engaged in commercial sex acts caused by RANDALL’s force and threats of force.  And SMITH allegedly arranged for hotels rooms to be used by women, including the first victim, who were engaging in commercial sex acts on RANDALL’s behalf.

Defendants RANDALL, CARL ANDREWS, GERALDINE FAUSTIN, and FRANKLYN FRANCISCO are alleged to have been members of a second conspiracy to commit sex trafficking through force, threats of force, fraud, or coercion.  As alleged, FRANCISCO recruited a victim to engage in commercial sex acts on behalf of ANDREWS, knowing that the victim was addicted to controlled substances.  ANDREWS is alleged to have falsely represented to that victim that ANDREWS would compensate her financially for engaging in commercial sex acts on his behalf.  ANDREWS is also alleged to have withheld from that victim the controlled substances to which she was addicted unless she engaged in commercial sex acts at his direction and for his profit.  RANDALL allegedly reserved a hotel room for the purpose of the fourth victim engaging in a commercial sex act, and FAUSTIN allegedly transported the fourth victim to locations where she engaged in commercial sex acts.

In addition, RANDALL is charged with four separate counts of sex trafficking by force, threats of force, fraud, or coercion, in connection with the trafficking of three victims.  ANDREWS is also charged with one count of sex trafficking of a victim by force, threats of force, fraud, or coercion.

Defendants ANTHONY DARBY and KARI PARKER are charged with two counts of violating the Mann Act for knowingly transporting two victims to multiple states, including New York and Connecticut, with the intent that those victims engage in prostitution.  DIAMOND is also charged with a violation of the Mann Act for knowingly transporting a victim to multiple states, including New York and Connecticut, with the intent that the victim engage in prostitution.

Along with defendant MAGEN MOREAU, DARBY is further charged with conspiracy to violate the Travel Act.  Specifically, MOREAU and DARBY allegedly published advertisements on the Internet offering commercial sex acts in the Southern District of New York and elsewhere.

DARBY and PARKER are also charged with conspiracy to violate the Travel Act.  As alleged, DARBY and PARKER used an account held by PARKER with a classifieds website to publish advertisements on the Internet offering commercial sex acts in the Southern District of New York and elsewhere.

In addition to the six charges against him discussed previously, RANDALL is charged with two counts of conspiring to violate the Travel Act.  With respect to the first of those conspiracies, RANDALL allegedly used a telephone to direct a co-conspirator not named in the indictment to promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of prostitution.  Regarding the second, RANDALL allegedly instructed ANDREWS – who is also charged in the second Travel Act conspiracy – how to purchase and publish an advertisement for a commercial sex act on the Internet, which ANDREWS ultimately did.  Lastly, in the ninth charge filed against him in the indictment, RANDALL is charged with violating the Travel Act, with respect to illegal prostitution.

According to the indictment, at least 10 young women were victims of the defendants’ crimes.  The charged conduct occurred, as detailed in the indictment, between 2012 and 2018. 

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Charts containing the names, charges, and maximum penalties for the defendants are set forth below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Berman praised the outstanding investigative work of Special Agents from the U.S. Attorney’s Office for the Southern District of New York, detectives from the Suffolk County Police Department, and Special Agents from the FBI’s New York Child Exploitation and Human Trafficking Task Force. 

The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Daniel H. Wolf and Benjamin Woodside Schrier are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. 

GREAT FALLS—Harlem resident Tristen Jace Gone, who admitted hitting his domestic partner, was sentenced today to three years in federal prison and two years of supervised release, U.S. Attorney Kurt Alme said.

Gone, 19, pleaded guilty in November to domestic abuse by a habitual offender.

U.S. District Judge Brian M. Morris presided.

Prosecutors said evidence showed that Gone punched the victim in the face and arm and threw her down after she received a court subpoena on July 9, 2018 in Newtown on the Fort Belknap Indian Reservation. Gone has two prior domestic convictions from Fort Belknap Tribal Court.

Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Fort Belknap Tribal Police and FBI.

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Natchez, Miss. - Today, Mike Hurst, the United States Attorney for the Southern District of Mississippi, along with the Natchez Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Adams County Sheriff’s Office, the local District Attorney’s Office, and other federal, state and local law enforcement agencies, announced the expansion of an initiative to combat violent crime called "Project EJECT" into Adams County and the City of Natchez.

Launched by the U.S. Attorney’s Office for the Southern District of Mississippi in December 2017 in the City of Jackson under the U.S. Department of Justice’s Project Safe Neighborhoods ("PSN") initiative, Project EJECT is designed as an enhanced violent crime reduction program that incorporates decades of experience in bringing various levels of law enforcement together with stakeholders in the community, with the overall goal of producing a long-term, meaningful reduction in and prevention of violent crime.

In expanding the initiative into other parts of the Southern District of Mississippi, Project EJECT now stands for: "Empower Justice Expel Crime Together."

Joined by law enforcement in Natchez, U.S. Attorney Hurst described the project as a multi-disciplinary, holistic approach that combines law enforcement arrests and prosecutions of violent criminals with prevention efforts, rehabilitation and reentry, educational initiatives, and improved communication.

"Project EJECT will serve as a force multiplier in the City of Natchez and Adams County, bringing federal agents, prosecutors, training and additional services to help the citizens of Natchez tackle and prevent violent crime. We have a simple messages to criminals: if you violate our laws and terrorize our neighbors, you will be ejected from our community. But, we also intend to work with offenders to help them get back on their feet before they are released, and we will work with the youth to educate them on making the right choices. At the end of the day, we all want safer communities," said U.S. Attorney Hurst.

The mission of Project EJECT is to reduce violent crime and make Natchez neighborhoods safer for all to enjoy. Part of the project will include discussions with the public and encouraging communities to help law enforcement in this effort, as well as communicating to the criminals that they will be prosecuted and punished for gun crimes and violent crimes. The Project will also seek to support locally-based efforts to stop violence and crimes before they occur and to help those who have been punished to reenter society as law-abiding citizens.

Project EJECT is comprised of a number of federal law enforcement agencies, as well as task force officers from various state and local investigative agencies, who will interact regularly with the Natchez Police Department and the District Attorney’s Offices to identify and respond to violent crimes when they occur. Cases arising from these crimes will then be presented to the local District Attorney’s Offices and the U.S. Attorney’s Office for prosecution.

For the first time ever, the U.S. Attorney’s Office is specifically dedicating an Assistant United States Attorney to prosecute violent crime in the City of Natchez under this project.

Project EJECT follows a directive from former U.S. Attorney General Jeff Sessions to the U.S. Department of Justice to reinvigorate DOJ’s Project Safe Neighborhoods with the intent to reduce the rising tide of violent crime in America. Project EJECT is the Southern District of Mississippi’s PSN initiative specifically tailored to address violent crime throughout the district.

In December 2018, at the 2018 Project Safe Neighborhoods (PSN) National Conference, Acting Attorney General Matthew Whitaker presented the U.S. Attorney’s Office for the Southern District of Mississippi and its law enforcement partners with the award for Outstanding Overall Partnership/Task Force for Project EJECT. Only 16 awards were given during the annual PSN National Conference, which recognize individuals and groups for their dedication and contribution to the success of PSN. Project EJECT was one of only two recognized as the best partnerships or task forces in the nation.

In expanding Project EJECT into Natchez, the U.S. Attorney’s Office continues to lead the Project, with First Assistant U.S. Attorney Darren LaMarca and Criminal Chief Courtney Coker guiding the task force initially, Assistant U.S. Attorney Bert Carraway serving as the primary prosecutor for violent cases under Project EJECT in Natchez, and Assistant U.S. Attorney Candace Mayberry in Jackson serving as the Project Safe Neighborhoods Coordinator for the entire Southern District of Mississippi.

          The former Chief Executive Officer of a Pacific Northwest community bank pleaded guilty today in U.S. District Court in Wisconsin to filing a false tax return, announced U.S. Attorney Brian T. Moran.  VICTOR KARPIAK, 64, now of La Crosse, Wisconsin, admits that between 2010 and 2016 he failed to report more than $2.3 million in income on his taxes.  KARPIAK previously served as President and CEO of First Savings Bank Northwest based in Renton, Washington.  He retired in 2013 and moved from the Seattle area. KARPIAK was charged in the Western District Washington, but chose to have the case resolved near his new home in Wisconsin.  Sentencing by U.S. District Judge William M. Conley is scheduled for May 17, 2019.

          According to the facts admitted as part of his plea, between 2010 and 2016, KARPIAK served as a trustee and consultant for a woman who was the beneficiary of a family and a marital trust.   Over those years KARPIAK paid himself fees of $3,265,072 but on his taxes KARPIAK reported less than a third of that income ($943,322).  The tax loss on more than $2,321,750 in income is $867,540.  In the plea agreement KARPIAK agreed to pay $867,540 to the IRS as well as any interest or civil penalties the IRS imposes in the case.   The interest alone in this case could total more than $143,647.

          Filing a false tax return is punishable by up to three years in prison and a $250,000 fine or twice the gross tax gain or loss.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

          The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorneys Steven Masada of the Western District of Washington and Elizabeth Altman of the Western District of Wisconsin.

LAS VEGAS, Nev.– The leader of a large-scale timeshare resale scam was sentenced today to 63 months in federal prison for defrauding more than 1,000 victims, many of them elderly, out of more than $3.3 million, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

“Today’s sentence demonstrates law enforcement’s commitment to protecting vulnerable elder populations in Nevada,” said U.S. Attorney Trutanich. “Elder fraud and exploitation can have a crippling effect on victims, and federal prosecutors will pursue financial fraudsters who exploit our most vulnerable for personal and financial gain.”

Daniel Martin Boyar, aka “Wolf,” 64, of Orlando, Florida, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, and two counts of wire fraud. In addition to the prison term, U.S. District Judge James C. Mahan sentenced Boyar to three years of supervised release and ordered him to pay $3.37 million in restitution to the victims of the fraud scheme.

Between October 2010 to April 2012, Boyar, the admitted leader of the scheme, and his 20 co-conspirators devised and participated in a telemarketing scam to defraud more than 1,000 timeshare owners out of more than $3.3 million dollars. Using stolen data to identify timeshare owners, the defendants promised to sell the timeshares in return for the owner paying in advance half of the costs associated with the purported sales. There were no buyers and the timeshare sales never occurred. This is a common criminal telemarketing scheme known as “the buyer’s pitch.” Boyar was directly responsible for more than $3.3 million in losses to the victims.

The scam operated out of Orlando, Florida, under numerous business names including Holiday Advertising, First Capital Financial Services Corporation, Professional Concepts LLC, TeleTeton Corporation, Redline Funding LLC, Great West Funding Incorporated, Equity Financial Services LLC, Beneficial Business Solutions, Eastern Enterprises LLC, Vacation Funding Partners LP, Property, People, Travel, and Community Funding Corporation, using fake front companies in various cities across the United States, including Las Vegas, Nevada. Boyar and his co-conspirators would use false identities and lease temporary office spaces around the country. This allowed them to establish front companies using inactive companies which made the scam appear legitimate. Using voice-over-internet phone systems, they spoofed telephone numbers that made it appear that they were calling from the location of the fake front company. Callers in the scheme pretended to be in the distant office, using the internet to track the weather and local news in the location of the fake front company and inviting victims to view the leased building on mapping websites. The conspirators created websites with materially false and misleading information to include customer testimonials, company officers, and press releases. 

Twenty of Boyar’s co-conspirators were charged and have pleaded guilty for their involvement in this fraud scheme. Six, in addition to Boyar, have been sentenced. The remainder await sentencing.

The case was investigated by the FBI, the U.S. Postal Inspection Service, and the Florida Department of Agriculture and Consumer Services. Assistant U.S. Attorney Dan Cowhig prosecuted the case.

Consumers should use caution when previously unknown telemarketers offer unsolicited services. It is relatively easy for scam artists to create the appearance of legitimacy for a fraudulent business front by manipulating information available through the Internet. Fraudsters frequently are able to buy or steal information related to their intended victims that the victim believed was confidential, helping the fraudster trick the victim into believing the fraudster is part of a legitimate business.

Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.

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PHILADELPHIA – United States Attorney William M. McSwain announced that Bakary Camara, 32, of Philadelphia, was convicted today by a jury of one count of conspiracy to produce identification documents without lawful authority, one count of bribery of an agent from PennDOT, two counts of misuse of a Social Security number, and one count of aggravated identity theft.

The defendant bribed his co-conspirator Henry Gibbs (a former PennDOT agent) in order to unlawfully obtain Pennsylvania learner’s permits and non-commercial and commercial driver’s licenses for foreign nationals and others. Some of the individuals for whom the defendant assisted in getting a driver’s license did not speak English and could not pass the DMV knowledge tests. The defendant obtained and attempted to obtain licenses for at least one individual who entered the country illegally. In return for the bribes, Gibbs entered false information into the PennDOT system indicating the individuals passed the required tests, even though they had never taken them.

Moreover, the defendant falsified documents (including utility bills, cellular phone bills, tax notices, and insurance documents) to make it appear that some non-Pennsylvania residents lived in Pennsylvania. The defendant gave the individuals the falsified documents to provide to Gibbs, who accepted the falsified documents and uploaded them into the PennDOT system. The defendant unlawfully assisted at least 30 immigrants and foreign nationals in obtaining Pennsylvania learner’s permits and driver’s licenses through Gibbs. The defendant charged these individuals $300 to $7,000 to assist them with obtaining a Pennsylvania driver’s license and provided Gibbs at least $5,000 in bribes. 

“This kind of bribery and fraud will never be tolerated,” said U.S. Attorney McSwain. “It is incredibly dangerous to provide driver’s licenses to those who have not even passed a driving test. In his scheme, the defendant committed a fraud on the government and created a true danger to public safety. We are grateful that the jury held him accountable for his crimes.”

“Today’s guilty verdict highlights Homeland Security Investigations Philadelphia continued vigilance against corruption schemes that damage the trust the public places in our state institutions,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “This case is another excellent example of federal, state and local cooperation to combat fraud in our community.”

The case was investigated by Homeland Security Investigations and the Social Security Administration, with special assistance from the Pennsylvania Department of Transportation. The case is being prosecuted by Assistant United States Attorney Tiwana Wright.

BOISE - This week, two more former IDOC correctional officers were sentenced for committing drug trafficking crimes as part of a public corruption sting operation, U.S. Attorney Bart M. Davis announced.  U.S. District Judge B. Lynn Winmill sentenced Richard McCollough, 37, to 97 months in prison and Timothy Landon, 36, to 41 months in prison.  Both will be placed on supervised release for three years after their release from prison.

The case stems from a sting operation initiated by the FBI at IDOC’s request to weed out corruption among IDOC correctional officers.  The FBI was able to locate corrupt prison guards by using undercover agents who invited the guards to commit crimes outside of IDOC’s facilities.  The defendants believed that the undercover agents they were assisting were large‑scale drug traffickers.  The guards provided security and completed other tasks for the undercover agents during staged deliveries of drug loads and drug money.  No drugs were in the sole possession of the defendants, and no drugs or other contraband were brought into any IDOC facility as part of these operations.

McCollough pleaded guilty to two counts of possession of a firearm in furtherance of a drug trafficking crime.  He joined Landon and co-defendant Erik Thompson, 37, in several operations for the purported drug trafficking organization.  This included participating in moving large quantities of drugs and counting large amounts of cash that were delivered to the purported drug trafficking organization.

Landon pleaded guilty to one count of conspiracy to aid and abet drug trafficking.  He participated in one major operation with McCollough and Thompson before splitting off to conduct other operations with co-defendant Robert Wallin, 36, who was sentenced to 37 months in prison on February 21, 2019.

Thompson is scheduled to be sentenced on April 7, 2019 before Judge Winmill at the federal courthouse in Boise.

In addition to the FBI, the Boise Police Department, the Meridian Police Department, IDOC’s Special Investigations Unit, and the Ada County Prosecutor’s Office participated in the investigation.

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United States Attorney Ron Parsons announced that a Belle Fourche, South Dakota, woman convicted of Theft of Government Property, Supplemental Security Income Benefits Fraud, and False Statement was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.

Cindy Lou Geib, age 49, was sentenced on February 20, 2019, to 10 months in federal prison, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund on each of the three felony charges.  The time in federal prison is to run concurrently on each conviction.  Geib was also ordered to pay $112,468.10 in restitution.

The conviction stems from Geib knowingly and willfully making false statements to the United States Social Security Administration and the South Dakota Department of Social Services, to obtain Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP) benefits, Medicaid, and Low Income Energy Assistance Program (LIEAP) benefits, to steal $112,468.10 in money and benefits for herself for herself and her children between 2017 and 2017.

This case was investigated by the Social Security Administration Cooperative Disabilities Investigation Unit, with assistance from the U.S. Department of Health and Human Services Office of the Inspector General and the South Dakota Department of Social Services Office of Recoveries and Fraud Investigations.  Assistant U.S. Attorney Benjamin Patterson prosecuted the case.   

Geib was ordered to self-surrender to the custody of the U.S. Marshals Service on March 20, 2019, to begin serving her sentence.

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

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pablo Lugo III, 23, of Lockport, NY, who was convicted of possession with intent to distribute, and distribution, of fentanyl, was sentenced to serve 168 months in prison by U.S. District Judge Elizabeth A. Wolford. 

Assistant U.S. Attorneys Meghan A. Tokash and Joseph M. Tripi, who handled the case, stated that on March 29, 2015, Lockport Police Officers responded to 152 Caledonia Street and found an individual, K.R., deceased. Officers recovered four reddish paper wrappers in the bathroom, one of which was tested at the Niagara County Sheriff’s Office Forensic Laboratory and determined to contain fentanyl. An autopsy determined that K.R. died of acute fentanyl intoxication.

Text messages recovered from K.R.’s cellular phone revealed that on March 28, 2015, K.R. communicated with Lugo between 12:22 p.m. and 12:51 p.m. K.R. died shortly after the text message exchange. The defendant admits that K.R.’s death resulted from the drugs he gave to K.R.

Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Voutour; and the Lockport Police Department, under the direction of Acting Chief Steven Preisch.

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

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Chansen Diaz, 30, of Rochester, NY, pleaded guilty to conspiracy to steal mail before U.S. Magistrate Judge Marian W. Payson.  The charge carries a maximum penalty of five years in prison and a $250,000 fine.

Assistant U.S. Attorney John J. Field, who is handling the case, stated that Diaz was employed by a U.S. Postal Service contractor at the Greater Rochester International Airport. While performing his job, the defendant conspired with two other individuals, co-defendants Cordell James and Michael Harris, to steal gift cards and cash from the mail. The three men then used the stolen items to finance their lifestyles.

Charges remain pending against Cordell James and Michael Harris. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

The plea is the result of a joint investigation by the United States Postal Service Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and Inspectors with the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.

Sentencing is scheduled for May 29, 2019, at 2:30 p.m. before U.S. District Judge David G. Larimer.

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

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Aaron Hicks, a/k/a Boog, a/k/a Boogy, 34, of Buffalo, NY, who was convicted of racketeering conspiracy and conspiracy to distribute marijuana, was sentenced to serve 30 years in prison by U.S. District Judge Richard J. Arcara. In addition, Judge Arcara ordered the defendant to forfeit $10,400,000 in proceeds from illegal drug trafficking activity.

Assistant U.S. Attorneys Paul Parisi and Wei Xiang, who handled the prosecution of the case, stated that Hicks was a member of the Schuele Boys Gang which operated in the Schuele Street area of the East Side of Buffalo. The gang is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.

As a member, the defendant was the Buffalo-based main point of contact for the gang’s cocaine and marijuana supplier, Julio Contreras of McAllen, Texas. Hicks’s co-defendant, Roderick Arrington, was previously convicted following a jury trial in 2017 of the shooting murder of Quincy Balance, a/k/a Shooter, at the intersection of Northland and Stevens in Buffalo on August 30, 2012. Hicks, Arrington, and other Schuele Boys members believed that Balance was involved in the shooting murder of one of their associates on nearby Carl Street four days earlier. Arrington was sentenced to life in prison for murder in aid of racketeering.

“This defendant is the last, of more than two dozen individuals, to be sentenced in our prosecution of a violent street gang that terrorized the East Side of Buffalo and its citizens for a number of years, “ said U.S. Attorney Kennedy. “Our office is determined to bring the leaders, members, and associates of these street gangs to justice. We realize that these gangs spread something much more ruinous to our communities than large amounts of drugs and countless acts of violence. These gangs spread despair. By taking them on, we hope to restore the community’s faith not only in the rule of law but in the possibility for a more productive and positive future.”      

Hicks is one of 28 Schuele Boys Gang members and associates to be charged and convicted in this case and the final defendant to be sentenced. 

Today’s sentencing is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the New York State Police, under the direction of Major Edward Kennedy. Additional assistance was provided by the Erie County District Attorney’s Office, the Edinboro University Police Department in Pennsylvania, the West Tennessee Judicial Drug Task Force, the City of McAllen, Texas Police Department, HSI Harlingen, Texas, and the FBI offices in Houston, Texas and Jackson, Mississippi.

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SHREVEPORT, NEW ORLEANS, LAFAYETTE, La. – U.S. Attorney David C. Joseph announced today that a former Justice of the Peace for the Second Justice Court of Jefferson Parish was convicted by a federal jury in New Orleans for using his position to illegally obtain wage garnishments and loans.  The jury returned its guilty verdict after deliberating for approximately three hours, ending a trial that began Tuesday, February 19, 2019.

Patrick Hale Dejean, 40, was found guilty this afternoon, of 13 counts of mail fraud and three counts of making false statements to a bank.

“Public corruption by our elected officials will not be tolerated in Louisiana,” said Joseph.  “In this case, the Justice of the Peace targeted some of the most vulnerable members of our society and stole their hard earned wages, defrauded banks, and abused the trust placed in him by the public.  This verdict should serve as a warning to other Louisiana public officials who may intend to use elected office to line their own pockets.”

Evidence presented at trial proved that from May 2009 through August 2016, Dejean diverted money from a Second Justice Court bank account for his personal use and made false statements to a bank to improperly borrow money on behalf of the court, which he later spent on himself. 

During the trial, jurors heard evidence that Dejean systematically abused the Second Justice Court’s garnishment procedures to defraud creditors and debtors with business before the court.  As a Justice of the Peace, Dejean judged small claims civil cases for creditors seeking payment from customers who were behind in their payments.  If a judgment was obtained by the creditor, Dejean issued garnishment judgments instructing employers of the debtors to send wage garnishments to the Second Justice Court.

Evidence presented at trial proved that Dejean improperly used this process to enrich himself by failing to forward the proper amounts of the wage garnishments collected to the creditors and instead spent the money on himself, primarily to gamble at local casinos.  In order to facilitate his scheme, Dejean would continue to garnish the wages on unsuspecting debtors after they had already paid the amount owed under the judgment.  

The jury also found that Dejean lied on bank applications in 2012 and 2013 to influence First Bank and Trust to lend over $50,000 to the Second Justice Court.  Dejean applied for bank loans on behalf of the court despite knowing that the court was prohibited by Louisiana law from borrowing money.  Rather than using the loan proceeds for expenses related to the court, Dejean gambled with the money and otherwise used it for personal expenses.    

Dejean faces up to 20 years in prison for each mail and wire fraud count and up to 30 years in prison for each count related to making a false statement to a bank.  United States District Judge Mary Ann Vial Lemmon set Patrick Dejean’s sentencing for May 23, 2019.

The case is being prosecuted by the U.S. Attorney’s Office for the Western District of Louisiana because the U.S. Attorney’s Office for the Eastern District of Louisiana is recused from the case.           

The FBI and the Louisiana Legislative Auditor conducted the investigation.  U.S. Attorney David C. Joseph and Assistant U.S. Attorneys John Luke Walker and David J. Ayo prosecuted the case.

PORTLAND, Ore.—Harold Blackwolf Jr., 35, of Warm Springs, Oregon, pleaded guilty today to two counts of involuntary manslaughter and one count of possession of a firearm as a convicted felon.

According to court documents, on September 28, 2017, Blackwolf was at a friend’s house on the Warm Springs Indian Reservation. While under the influence of alcohol, Blackwolf left his friend’s house and entered his Dodge Durango, a sport utility vehicle. Blackwolf drove away at a high rate of speed with his headlights off. As he was departing, he struck two adult men who were in the road, killing both. Blackwolf, a convicted felon, was arrested on April 20, 2018 and found to be in possession of a single firearm, a Taurus .38 special revolver.

Involuntary manslaughter is punishable by up to eight years in prison, a $250,000 fine and three years’ supervised release. Possessing a firearm as a felon is punishable by up to 10 years in prison, a $250,000 fine and three years’ supervised release. Blackwolf will be sentenced on June 11, 2019 before U.S. District Court Judge Anna J. Brown.

The government will seek an order of restitution on behalf of Blackwolf’s victims at sentencing.

This case was investigated by the FBI and the Warm Springs Tribal Police Department. It is being prosecuted by Benjamin Tolkoff, Assistant U.S. Attorney for the District of Oregon.