BOSTON – A Fitchburg man was indicted yesterday in federal court in Boston in connection with drug trafficking activities involving fentanyl.

Sebastian Batista, 25, was charged with one count of possession with intent to distribute more than 40 grams of fentanyl. Batista was arrested on state charges on Feb. 28, 2019, and has been in custody since. Batista will appear in federal court in Boston at a later date.

The charge of distribution of more than 40 grams of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Valuable assistance was provided by the Waltham Police Department and the Middlesex County District Attorney’s Office. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

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

PROVIDENCE – A Cranston man is facing a recommended term of incarceration of 42 months in federal prison when he is sentenced in September, after admitting to a federal court judge on Wednesday that he had been in possession of over 40,000 images and 800 videos of child pornography.

According to information presented in court, in January 2018, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force observed an IP address sharing files of suspected child pornography. Law enforcement connected the IP address to Steven Papazian, 32, of Cranston.

On February 8, 2018, members of the ICAC Task Force executed a court-authorized search of Papazian’s residence and seized a computer and multiple digital storage devices. A forensic audit of the computer identified over 40,000 images and 800 videos of child pornography, including several previously identified victims.

Papazian’s guilty plea on Wednesday to possession of child pornography is announced by United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.

Papazian is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 26, 2019. An agreed upon plea agreement filed in this matter recommends the court impose a sentenced of 42 months in federal prison.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.     

The matter was investigated by the ICAC Task Force, with the assistance of Homeland Security Investigations.

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PROVIDENCE – Paul J. Stabile, 39, of Cranston, faces 10 years to life in federal prison when he is sentenced in September, having pleaded guilty on Wednesday to one count of enticement of a minor to engage in sexual activity and one count of possession of child pornography, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.

According to information presented in Court, between October 2017 and December 2017, Stabile used an online persona “Cindi Mennillo” to pretend to be a 16 year-old old girl from Newport, R.I.  Using the online persona, Stabile persuaded numerous young boys between the ages of 13-15 to engage in explicit sexual activity in live stream videos over Facebook Messenger and Skype. 

The investigation began when the mother of a 14 year old boy in Nevada reported to the FBI that her son was the victim of an online enticement. The investigation uncovered chats between Stabile, pretending to be a 16 year-old girl, and the minor victim.  Stabile directed the minor victim to send back live video streams of himself masturbating.  As part of the effort to deceive the minor victim, Stabile falsely claimed technical difficulties were preventing “Cindi” from reciprocating with live video. Instead Stabile sent the Minor Victim images, both pornographic and non-pornographic, of an athletic young female purported to be “Cindi.”

In November 2018, a federal court authorized search warrant was executed at Stabile’s Cranston residence by law enforcement.  Several computers and other media devices seized were found to contain child pornography, including videos of dozens of young teenage boys performing a sex act in a similar manner to the Nevada-based minor victim.  Also found were the images sent by “Cindi” to the minor victim. 

Stabile admitted to law enforcement that he used the “Cindi Mennillo” online persona to communicate with minors as young as 14, sent them sexually explicit and pornographic images, and persuaded them to livestream video of themselves engaged in explicit sexual activity, which he recorded.

At sentencing on September 26, 2019, Stabile faces a statutory mandated minimum prison sentence of 10 years, up to life in federal prison. 

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.     

The case was investigated by the FBI with assistance from members of the Rhode Island State Police Internet Crimes Against Children Task Force, the Warwick and Cranston Police Departments, and the Washoe County, Nevada Sherriff’s Department.

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SPRINGFIELD, Mo. – A Sarcoxie, Missouri man who was earlier charged with illegally possessing firearms and ammunition has been indicted by a federal grand jury on additional charges of illegally possessing an unregistered silencer and selector switches to convert semi-automatic firearms into machine guns.

Leng Lee, 35, was charged in a three-count superseding indictment returned by a federal grand jury in Springfield, Mo., on Wednesday, June 12. The superseding indictment replaces an indictment returned on May 7, which charged Lee with being a felon in possession of firearms and ammunition.

The federal indictment charges Lee with one count of illegally possessing a device designed to convert a semi-automatic Glock-type pistol into an automatic machine gun, and one count of illegally possessing an unregistered silencer. The indictment also contains the original count of being a felon in possession of firearms and ammunition. The indictment alleges that Lee was in possession of a Glock 10mm pistol, two Glock 9mm pistols, and numerous rounds of ammunition.

According to court documents, law enforcement officers participated in the controlled delivery of an international mail package from China addressed to Lee at his residence on April 23, 2019. The parcel contained seven parts (selector switches) that are used to convert a Glock semi-automatic pistol to fire in full-automatic mode.

Officers executed a search warrant at Lee’s residence and found numerous firearms, ammunition, firearm suppressors, suspected methamphetamine, marijuana, suspected stolen farm equipment, and a large amount of cash. According to court documents, Lee told officers that a couple of the firearms were given to him by his deceased father, but the others were purchased by him at gun shows or during hand-to-hand transactions. None of the firearms were purchased from a licensed firearms dealer. Lee also told officers that he had 10-15 past deliveries of the selector switches, and that he was able to convert and successfully fire a Glock pistol as a fully automatic firearm.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lee has two prior felony convictions for burglary, and prior felony convictions for vandalism, criminal conspiracy, grand theft, and being a felon in possession of a firearm.

The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Newton, Mo., Sheriff’s Department.

Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Michael Leavitt, age 54 of Warden, Washington, was sentenced today after having pleaded guilty on March 14, 2019, to receipt of child pornography. Chief United States District Judge Thomas O. Rice sentenced Leavitt to a 10-year term of imprisonment, to be followed by a 10-year term of court supervision after he is released from federal prison. Chief Judge Rice imposed restitution in the amount of $3,000 for one of the child pornography victims whose picture Leavitt had in his collection. Chief Judge Rice also required Leavitt to register as a sex offender upon completion of his prison sentence.

According to information disclosed during court proceedings, Leavitt received over 600 images of child pornography via the internet. The images were discovered on his digital devices, which were searched pursuant to federal search warrants. The investigation began when a 9-year-old student reported to authorities that Leavitt attempted to take photographs under her skirt while he was substitute teaching in her class at Warden Elementary. Investigators discovered Leavitt possessed numerous images of other students. During an interview with law enforcement, Leavitt admitted he had taken pictures of the students without their knowledge.

Chief Judge Rice noted that the lives of the child victims depicted in child pornography images will never be the same and Leavitt was not the type of child pornography defendant who only acted alone in front of a computer without access to children. The Court ruled that Leavitt’s attempted interactions with young children merited a more serious sentence, and his conduct was very close to the kinds of child exploitation conduct that often merits a life sentence.

U.S. Attorney Harrington said, “This case sends a strong message that the United States Attorney’s Office for the Eastern District of Washington and our federal, state and local law enforcement partners are firmly committed to protecting the public from individuals with a sexual interest in children who receive and collect child pornography. The United States Attorney’s Office commends the law enforcement officers with the Warden Police Department and Federal Bureau of Investigation who investigated this case. Their partnership during the investigation resulted in the successful outcome of this case.”

This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:

· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;

· Participation of PSC partners in coordinated national initiatives;

· Increased federal enforcement in child pornography and enticement cases;

· Training of federal, state, and local law enforcement agents; and

· Community awareness and educational programs.

For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation and the Warden Police Department. This case was prosecuted by David M. Herzog, an Assistant United States Attorney for the Eastern District of Washington.

CHICAGO — The former Chief Executive Officer of a northwest suburban nutrition company has pleaded guilty to securities fraud for engaging in a market manipulation scheme to artificially inflate the company’s stock price.

ANDREW J. KANDALEPAS, 67, of Schaumburg, pleaded guilty Tuesday to one count of securities fraud.  U.S. District Judge Gary Feinerman set sentencing for Sept. 5, 2019.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI.  The U.S. Securities and Exchange Commission provided valuable assistance.  The government is represented by Assistant U.S. Attorneys John D. Mitchell and William Hogan.

Kandalepas was the CEO, President and Chairman of the Board for Wellness Center USA Inc., whose principal place of business was in Hoffman Estates.  The company raised more than $19 million from investors through the sale of common stock, and Kandalepas himself held more than three million shares.  Kandalepas admitted in a plea agreement that from December 2012 to June 2015, he bought and sold Wellness Center shares for the purpose of artificially inflating the stock price. 

Many of his trades occurred at or near the close of normal trading hours in a form of market manipulation known as “marking the close.”  According to an example cited in the plea agreement, Kandalepas, using a brokerage account in the name of an acquaintance, executed a trade to buy 300 Wellness Center shares within the last five seconds of the trading day on May 4, 2015.  The trade artificially raised Wellness Center’s share price by 4%, from $0.27 to $0.28, causing a profit for Kandalepas of approximately $30,000.

In all, Kandalepas netted at least $136,176 in trading profits for his personal use.

Securities fraud is punishable by up to 20 years in prison.  The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

BOSTON – Three Brockton men were indicted yesterday in federal court in Boston on charges of conspiring to manufacture and distribute controlled substances.

Binh Thanh Le, 22, Steven McCall, 23, and Allante Pires, 22, were each charged with conspiring to manufacture and distribute MDMA, Ketamine and Xanax. All three men were previously charged by criminal complaint and were detained following an initial appearance in federal court in May 2019. 

According to the charging documents, Le, McCall, and Pires received wholesale quantities of controlled substances in the mail. The three men then processed and manufactured those controlled substances at an office space they rented in Stoughton. To distribute the drugs, the men allegedly created a vendor site entitled “EastSideHigh” on Dark Net Market websites, where they advertised various drugs for sale, including cocaine, MDMA, Ketamine and Xanax.

More than 20 kilograms of MDMA, more than seven kilograms of Ketamine, more than 10,000 Xanax pills, more than $200,000 worth of Bitcoin, and more than $100,000 in cash were seized by authorities. During the execution of a search warrant at the office space in Stoughton, agents encountered and arrested McCall, who was wearing latex gloves and a respirator, and was believed to be in the process of filling drug orders.  During the search of that office space, a computer with the “EastSideHigh” vendor page open, and numerous packages containing MDMA and Ketamine, various shipping and packaging materials, and a pill press were recovered. 

During the investigation, an undercover federal agent ordered MDMA from one of the “EastSideHigh” vendor sites on a Dark Net Marketplace, and later observed Le allegedly deposit the envelope containing the agent’s order into a United States Postal Service collection box in Stoughton.  Pursuant to federal search warrants, numerous other envelopes containing MDMA and Ketamine, which are connected to this drug distribution scheme, were intercepted 

On March 27, 2019, Le allegedly met with undercover law enforcement officers at a hotel in Norwood for the purpose of exchanging $200,000 worth of Bitcoin for cash. Le was arrested after he transferred the bitcoin to the agents.  

United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; and Norfolk County District Attorney Michael W. Morrissey made the announcement today. Agents from Homeland Security Investigations in Colorado, Postal Inspectors from around the country, and the Stoughton, Norwood, and Brockton Police Departments assisted in the investigation. Assistant U.S. Attorneys James E. Arnold of Lelling’s Narcotics & Money Laundering Unit and Rachel E. Goldstein of Lelling’s Asset Recovery Unit are prosecuting the case.

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

CHICAGO — The former president of the village of Posen pleaded guilty in federal court today to charges he embezzled money from the south suburb and spent it at casinos.

DONALD W. SCHUPEK, 79, of Posen, pleaded guilty to one count of embezzlement.  The conviction carries a maximum penalty of ten years in prison and a fine of up to $250,000, plus mandatory restitution.  U.S. District Judge Robert W. Gettleman set sentencing for Sept. 12, 2019, at 10:30 a.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI.  The government is represented by Assistant U.S. Attorney Terry Kinney.

According to his plea agreement, Schupek, while serving as Posen president, directed the village bookkeeper to issue checks on the village’s checking account made payable to Schupek.  From June 2014 to August 2016, Schupek directed the issuance of nine checks, totaling $27,000, the plea agreement states.  At the time, Schupek did not inform the village treasurer nor the village board that he had issued these checks to himself.

Schupek admitted in the plea agreement that he converted the funds to his own use, including gambling expenses at two casinos in Joliet.

HAMMOND-Robert Nieto, also known as “Cowboy,” 45, of Gary, Indiana, and a member of the Chicago-based Latin Kings, was sentenced by U.S. District Judge Phillip Simon following his conviction at trial last May of conspiracy to participate in racketeering activity and conspiracy to distribute and possess with intent to distribute cocaine and marijuana, announced U.S. Attorney Kirsch.    

Nieto was sentenced to Life in prison followed by 5 years of supervised release.                

U.S. Attorney Kirsch said, “Long sentences, such as the sentence imposed in this case, should send a strong message of deterrence to those engaged in these activities.  My office has amplified its efforts to reduce violent crime, and we will use all our resources to prosecute those who commit these senseless acts of violence.  I am dedicated to working together with law enforcement partners to reduce violent crime.” 

According to evidence presented at trial, as part of the racketeering conspiracy, on December 2, 2013, Rolando Correa, 22, of Gary, Indiana, was killed in Gary.  Mr. Correa was coming to the aid of his next door neighbors, who were victims of a home invasion robbery.  Robert Nieto assisted in setting up the home invasion and listened to a police scanner to assist in the escape of the robbers.  The jury found Nieto responsible for Correa’s death in addition to finding that Nieto conspired to distribute or possess with intent to distribute at least five kilograms of cocaine as part of the racketeering conspiracy.  The jury also found that Nieto conspired to distribute or possess with intent to distribute at least five kilograms of cocaine and at least 100 kilograms of marijuana as part of the drug conspiracy.

According to evidence presented at trial and case documents, Nieto was also a local leader of the Latin Kings who has been involved in the gang since at least approximately 2007, distributed cocaine and marijuana, possessed firearms, and ordered fellow gang members to shoot at rivals.  He has a prior felony conviction for aggravated battery.            

Approximately 43 defendants have been charged with racketeering conspiracy as members of the Latin Kings in a criminal conspiracy extending back to 2003.  The racketeering conspiracy charge alleges that gang members and associates were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated assault, sex trafficking, and narcotics distribution. 

This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents.  The Lake County Prosecutor’s Office and the U.S. Attorney’s Office, Northern District of Illinois, has also provided assistance.  The Latin King racketeering conspiracy case is being prosecuted by Northern District of Indiana Assistant U.S. Attorneys David J. Nozick, Nicholas J. Padilla, Dean R. Lanter, and Joseph A. Cooley, formerly of the Criminal Division’s Organized Crime and Gang Section.

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HAMMOND –Alan Piwowar, 34, of Highland, Indiana was sentenced today by U.S. District Court Judge Joseph S. Van Bokkelen after pleading guilty to production and possession of child pornography, announced U.S. Attorney Kirsch.   

Piwowar was sentenced to serve a total of 360 months in prison, 15 years of supervised release and ordered to pay $50,000 in restitution.

According to his plea agreement, in October 2008, Piwowar knowingly caused a 2-year-old child in his custody, care, or supervisory control to engage in sexually explicit conduct and took photographs. Piwowar admitted that he touched the child with the intent to sexually arouse or gratify himself. In April 2018, Piwowar also possessed depictions of other minors under the age of 18 being caused to engage in sexually explicit acts with adults. After learning he was under investigation for child pornography offenses, Piwowar sought to destroy evidence of his crimes. 

This case was investigated by the Federal Bureau of Investigation. The case was handled by Assistant U.S. Attorney Jill R. Koster.

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United States Attorney Trent Shores announced today the results of the June 2019 Federal Grand Jury B.

The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Ken Lee, Veng Xiong, Xiongkou Her, and Kosh Kash Cannady Lor- Superseding Indictment. Drug Conspiracy; Possession of Firearms in Furtherance of a Drug Trafficking Crime (2 Counts); Felon in Possession of a Firearm. Ken Lee, 24; Veng Xiong, 32; Xiongkou Her, 23; and Kosh Kash Cannady Lor, 24, all of Tulsa, are charged with conspiring to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. Lee and Her are also charged with possessing a Glock .40 caliber semi-automatic pistol and a Taurus .38 caliber special revolver in furtherance of their drug trafficking crimes. Xiong and Lor are charged with possessing a Winchester 12 gauge shotgun and associated ammunition in furtherance of their drug trafficking crimes. Xiong is further charged with being a felon in possession of a Winchester 12 gauge shotgun, a ROMARM/CUGIR 7.62x39 mm semi-automatic rifle, a Glock .40 caliber semi-automatic pistol, and a Taurus .38 caliber special revolver. The investigative agencies are the Osage Nation Tribal Police, Osage County Sheriff’s Office; FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Oklahoma Bureau of Narcotics and Dangerous Drugs, and Oklahoma Highway Patrol.

Krishna Parchuri, Christopher Parks, Gary Lee, and Jerry Keepers- Superseding Indictment. Conspiracy to Offer and Pay, and Solicit and Receive Health Care Kickbacks; Conspiring to Commit Health Care Fraud; Soliciting and Receiving Health Care Kickbacks; Obstruction of Criminal Investigations of Health Care Offense. Parchuri, 44, of Tulsa, Parks, 57, of Tulsa, Lee, 58, of Tulsa, and Keepers, 65, of Kingwood, Texas, are charged with conspiring to offer and pay, and solicit and receive health care kickbacks; and conspiring to commit health care fraud. Keepers and Parchuri are also charged with soliciting and receiving illegal bribes and kickback payments. Parchuri is further charged with obstructing the criminal investigation into the health care offenses. The Department of Labor- Office of Inspector General (OIG), IRS- Criminal Investigation, U.S. Postal Service- OIG, Department of Veterans Affairs- OIG, FBI, the Department of Health and Human Services- OIG, and Defense Criminal Investigative Service conducted the investigation.

SOUTH BEND – Jaronna Groves, age 22, of South Bend, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr. upon her plea of guilty to possession of a firearm in furtherance of a drug trafficking crime and possessing with intent to distribute fentanyl, announced U.S. Attorney Kirsch. 

Groves was sentenced to 72 months in prison followed by 2 years of supervised release. 

During several months in 2018, Groves participated in the distribution of drugs in South Bend.  Several of her acquaintances distributed heroin, fentanyl, and other drugs. Sometimes they used their own phones to do so, while other times they shared a common drug phone that customers would call.  On numerous occasions during June and July, 2018, she personally conducted drug sales to customers who had contacted the common drug phone.  Groves obtained a house on South Illinois Street in May, 2018, to allow her acquaintances to meet and discuss drug distribution.  She allowed them to store drugs, guns and cash in her house.  On July 13, 2018, investigators searched her house and found over 100 grams of fentanyl in her bedroom, along with cash, a money counter, scales, and 2 loaded handguns. 

This case was investigated by ATF with assistance from the South Bend Police Department.  The case was handled by Assistant U.S. Attorneys Joel R. Gabrielse and Molly E. Donnelly.

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SOUTH BEND – Mario Ward II, age 23, of LaPorte, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr. upon his plea of guilty to 2 counts of being a felon in possession of a firearm, announced U.S. Attorney Kirsch. 

Ward was sentenced to 60 months in prison followed by 2 years of supervised release. 

According to documents in this case, in July 2018, Ward possessed a firearm after being convicted of a felony offense.  Ward was in a car that led police on a high speed chase while he had a stolen 9 millimeter firearm.  The car crashed in a residential neighborhood, after which a second stolen 9 millimeter firearm was found in the car as well as over 50 grams of marijuana. While criminal charges from that incident were pending, Ward was released under court supervision.  While on release, investigators went to arrest Ward at his home for a pre-trial release violation.  During that arrest, investigators found a firearm that Ward admitting to handling as well as over 50 grams of marijuana and over $1,000.00 cash.

This case was investigated by ATF with assistance from the Michigan City Police Department, LaPorte County Drug Task Force and US Marshals Fugitive Apprehension Street Team.  The case was handled by Assistant U.S. Attorney Molly E Donnelly.

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Kelly Thornton (619) 546-9726

NEWS RELEASE SUMMARY– June 13, 2019

SAN DIEGO – Margaret E. Hunter admitted in federal court today that she and her husband, U.S. Rep. Duncan D. Hunter, knowingly and willfully used campaign funds as their personal bank account for years, spending lavishly on things they could not otherwise afford, such as expensive trips to Italy, Las Vegas, Laguna Beach, Disneyland and elsewhere, plus golf outings, a bachelor party, private school for their children, dinners in Del Mar and Coronado, and even plane tickets for their family pet, Eggburt the rabbit.

Margaret Hunter’s plea agreement indicates that she has agreed to provide “substantial assistance to the United States in the investigation and prosecution of others” and to “tell everything (she) knows about every person involved” in the crime.

U.S. District Judge Thomas J. Whelan set Ms. Hunter’s sentencing for September 16, 2019 at 9 a.m.  The Hunters both remain free on bond.  A motions hearing relating to defendant Duncan Hunter is scheduled for July 1, 2019, and his trial is scheduled to begin on September 10, 2019.

As detailed in her plea agreement, beginning no later than 2010 and continuing up to and including at least 2016, Margaret and Duncan Hunter agreed to knowingly use campaign funds for their own personal benefit and enjoyment, and for that of friends and family.  Throughout this period, the Hunters both recognized that many of their personal outings with family or friends (including trips to Del Mar, dinners or drinks with friends, family and “couples” vacations, golf outings, and a bachelor’s party) should not have been paid for with campaign funds. Nevertheless, Ms. Hunter admitted that the Hunters continued to improperly use campaign funds on these and many other occasions.

Among the improper expenses, Margaret Hunter acknowledged that the Hunters improperly spent $2,448.27 in campaign funds in August 2011 on a personal “couples” Las Vegas vacation in Las Vegas, Nevada, and concealed the personal expenditures by falsely reporting to the campaign treasurer that the expenses were all  “campaign related.” Similarly, later that same month, knowing that their family bank account had a negative balance, the Hunters improperly used $113.73 in campaign funds to pay their half of the bill during another couples’ “date night” out with good friends at Jake’s Del Mar; improperly used $156.22 in campaign funds during a “couples” day at the Del Mar Racetrack; and improperly used $511.03 in campaign funds at the Hotel del Coronado to celebrate their child’s birthday. They once again falsely told the campaign treasurer that all the charges were “campaign related.”

Ms. Hunter acknowledged in her plea agreement that these types of improper expenses went on for years and included: (1) the Hunters’ improper use of $371.51 in campaign funds on September 2, 2012 at the Loew’s Resort in Coronado for a family lunch in connection with their child’s Irish Dance competition; (2) the Hunters’ improper use of $100.69 in campaign funds on November 16, 2013 at Casa De Pico in La Mesa to take their family and close friends out to dinner before attending a sporting event featuring one of the Hunters’ children; (3) the Hunters’ improper use of $1,489 in campaign funds on June 28, 2014 to treat their good friends to dinner at the Studio restaurant in the Montage Laguna Beach resort, and for room service, drinks, and meals the next day for the Hunters by themselves; (4) the Hunters’ improper use of campaign funds on September 26, 2015 for a family trip to Disneyland, in which Ms. Hunter used Duncan D. Hunter’s campaign card to spend $229.44 in campaign funds at Disneyland’s Star Trader shop for gifts for the Hunters’ children, including two Minnie Mouse ear headbands, a Star Wars droid knit beanie, and a raglan-sleeve black-and-gray Star Wars girls T-shirt; and (5) the Hunters’ improper use of $669.07 in campaign funds on March 27, 2016 at the Hotel del Coronado for a family Easter Sunday brunch in the Crown Room that the Hunters recognized was well outside their budget.

In her plea, Ms. Hunter also admitted improperly using campaign funds on a number of family vacations, including: (1) a July 2014 vacation to Washington, D.C. and a resort in Pennsylvania (which included personal items and activities such as purchasing cigarettes, $399 for ziplining for Hunter and two of his children, and $250 in airline travel charges for the family’s pet rabbit, Eggburt); (2) a February 2015 family trip to Minnesota, during which they improperly paid for personal family expenses including $250 in airline travel charges for Eggburt, and $132 in Uber rides to take the Hunter family to the Mall of America; (3) a June/July 2015 family vacation involving Hunter’s cousin’s wedding in Boise, Idaho, and a stopover in Las Vegas on the way there in which the Hunters, among other things, spent $205.62 in campaign funds for personal items at the North Face store, which included a new pair of sunglasses for Duncan Hunter and a T-shirt; and (4) a November 2015 family vacation to Italy, in which the Hunters improperly used more than $10,000 in campaign funds, and attempted to justify the impermissible use of these funds by setting up a one-day tour of a U.S. Navy facility in Italy.

Margaret Hunter also admitted communicating with Hunter and with the campaign treasurer about the fact that it was only appropriate to pay expenses with campaign funds when an outing or event was for a bona fide campaign or political purpose. Nevertheless, Ms. Hunter admitted that she and her husband both knowingly violated these restrictions and other rules the treasurer implemented to track legitimate expenses (such as instructing the Hunters not to purchase gas using campaign funds, instructing the Hunters that withdrawing cash from ATMs and using “petty cash” required records of how money was spent, and requiring receipts which listed the names of donors and volunteers with whom the Hunters claimed to be spending campaign funds). 

Ms. Hunter also acknowledged that she and Duncan Hunter both were aware that the other spent, and could spend, campaign funds on personal activities and purchases without having to inform one another about the nature of specific “campaign” expenses.  According to Ms. Hunter, this understanding allowed the Hunters to spend campaign funds on certain personal matters they wished to conceal from the other.  For example, she hid from Duncan Hunter certain purchases she made with campaign funds for items like children’s school lunches.

On the other hand, when they improperly spent funds when they were together, they both recognized that campaign funds were being spent on personal activities. For example, after returning home from their personal Boise and Las Vegas vacation, Duncan Hunter and Ms. Hunter discussed how the campaign card had been declined as the family had “racked up a $600 minibar…and more charges at Caesars…” as well as a $200 family breakfast, the “kids room service” and pool drinks, and gift shop vacation expenses. 

Even after Duncan Hunter’s chief of staff questioned several expenses the Hunters had made using campaign funds, Ms. Hunter admitted that the Hunters falsely insisted to campaign staff and on public reports that the personal expenses were in fact appropriate campaign-related charges.  Moreover, Ms. Hunter acknowledged that she and Duncan Hunter continued using campaign funds to secretly make thousands of dollars in improper personal purchases (including family vacations, household goods and groceries, restaurants and bar tabs, a bachelor party, gas, fast food, retail shopping, cash withdrawals, a garage door, and personal Uber rides, among others) which they continued to disguise as campaign-related expenses.

DEFENDANTS                                            Case Number 18cr3677-W                          

Margaret E. Hunter                                         Age: 44                       Alpine, CA

SUMMARY OF CHARGE

Conspiracy to Defraud the United States – Title 18, U.S.C., Sec. 371

AGENCY

Federal Bureau of Investigation

WASHINGTON – Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, the U.S. Attorneys’ Offices for six federal districts, the FBI, the U.S. Postal Inspection Service, and other organizations. The Strike Force will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.

The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office.

“Fraud against the elderly is on the rise,” said Attorney General Barr.  “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”

“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”

“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”

“Florida is home to millions of our nation’s seniors, who are often targeted for fraud through unscrupulous means,” said U.S. Attorney Maria Chapa Lopez, Middle District of Florida. “The Transnational Elder Fraud Strike Force will enhance our ability to coordinate resources beyond our borders, and pursue and prosecute those who seek to prey upon one of our most vulnerable populations.

Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement, and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.

The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect, and financial exploitation.

The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least 3 million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.

More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.

Geoffrey S. Berman, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a federal indictment charging VANCE COLLINS, a/k/a “Big AK,” 50, and RAMON RAMIREZ, a/k/a “Obendy,” 48, with hiring a hitman to murder an individual believed to be having an affair with RAMIREZ’s wife.  COLLINS was arrested this morning in the Bronx and RAMIREZ was arrested this morning in Staten Island.  The target of their murder-for-hire plan was not killed.  Both defendants were presented this afternoon before United States Magistrate Judge Katharine H. Parker and detained.  The case has been assigned to United States District Judge P. Kevin Castel.

U.S. Attorney Geoffrey S. Berman said:  “As alleged in the indictment, Vance Collins and Ramon Ramirez put a price on another human’s life when they hired someone to kill a person believed to be having an affair with Ramirez’s spouse.  Thanks to the work of our remarkable law enforcement partners, Collins and Ramirez now stand charged in federal court for their alleged roles in this terrible crime.”

FBI Assistant Director William F. Sweeney Jr. said:  “Murder-for-hire cases are more common than one might think, and the FBI has a number of investigative resources and federal laws we can tap into to help us prevent these potential crimes.  But the fact that the plan allegedly concocted by Collins and Ramirez was ultimately unsuccessful shouldn’t overshadow the gravity of this situation – the intent was the same, regardless of the outcome.”    

According to the allegations in the Indictment[1]:

In or about late 2017, COLLINS and RAMIREZ hired another person to murder a man believed to be having an affair with RAMIREZ’s wife, and conspired to carry out this murder-for-hire plot from 2017 through 2018, in violation of 18 U.S.C. §§ 1958 and 2.  Each charge in the two-count indictment carries a maximum penalty of 10 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

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Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, New York State Police, New York City Police Department, Mount Vernon Police Department, Yonkers Police Department, Greenburgh Police Department, Peekskill Police Department, Westchester County Police Department, and Westchester County District Attorney’s Office. 

This case is being handled by the Office’s Violent and Organized Crime Unit and White Plains Division.  Assistant United States Attorneys Christopher Brumwell and Celia V. Cohen are in charge of the prosecution.               

BOSTON – A Dominican national was indicted today in federal court in Worcester on drug and identity theft charges.

Jonathan Francisco Bobadilla Rosa, 30, a Dominican national residing in Worcester, was indicted on possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl, false representation of a Social Security number and aggravated identity theft.

According to court documents, on Dec. 14, 2018, law enforcement seized approximately 138 grams of a substance containing both heroin and fentanyl from a backpack carried by Bobadilla Rosa. In addition, on Feb. 14, 2018, Bobadilla Rosa falsely represented that the Social Security number of another person belonged to him in an application for a Massachusetts identification card from the Massachusetts Registry of Motor Vehicles.

The charge of possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. The charge of false representation of a Social Security number carries a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of aggravated identity theft carries a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, three years of supervised release, and a fine of $250,000. Bobadilla Rosa will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Valuable assistance was provided by the Massachusetts Attorney General’s Office and the Massachusetts State Police. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division are prosecuting the case.

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

PHILADELPHIA – United States Attorney William M. McSwain announced today that Omar Faruq, 37, of Pennsauken, New Jersey, and co-conspirator Omar Ali, 36, also of Pennsauken, New Jersey, both entered pleas of guilty before United States District Court Judge Nitza I. Quiñones on one count each of conspiracy to defraud the Internal Revenue Service, aiding another in the filing of a false tax return, and filing a false tax return.

According to a criminal Information filed in April 2019, Faruq and Ali conspired to file false tax returns on behalf of their clients at Omar Consultancy Inc., a tax service operated by them with offices in Pennsylvania and New Jersey.

According to the plea memorandum filed for today’s court appearance, Faruq and Ali consistently used false filing status, false Schedule A deductions and expenses, false Schedule C business income and losses, and fictitious credits to decrease clients’ tax liabilities, all of which resulted in increased refunds for many of their clients. Faruq diverted portions of his clients’ returns to his own bank account as part of the conspiracy, totaling more than $300,000, and Ali diverted over $170,000 to his own bank accounts. 

Faruq and Ali both also pled guilty to filing a false income tax return for themselves and their respective spouses for tax year 2014. In filing the false returns, Faruq and Ali omitted gross receipts from their tax preparation business on the 2014 tax returns and failed to report diverted funds from taxpayer-clients as income on their personal returns.

“Our tax system depends on the honesty of all citizens to truthfully file their tax returns, many of whom rely on professionals to represent their interests and to do the work honestly,” said U.S. Attorney McSwain. “Tax preparers like Faruq and Ali undermine the tax system when they prepare and file false tax returns for their clients. My Office will aggressively investigate and prosecute tax preparers like the defendants who profit by turning their tax preparation services into fraud factories.”

“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients,” stated John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office.  “Tax practitioners and return preparers have a duty to their clients to prepare tax returns that comply with the law and are complete and accurate.  IRS Criminal Investigation will investigate and hold accountable abusive tax preparers who attempt to defraud our nation’s tax system.”

The case was investigated by the Criminal Investigation Division of the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Richard P. Barrett.

PROVIDENCE – A Lincoln, R.I., wholesale businessman pleaded guilty in federal court in Providence today to selling more than 500,000 capsules of a misbranded drug that contain the commonly known active ingredient in Viagra, purporting that the drug was an all-natural herbal supplement designed for male sexual enhancement.

Jeffrey Guzman, 34, of Providence, operator of Tony’s Enterprise, LLC, in Lincoln, today pleaded guilty to fraudulent introduction of a misbranded drug. Guzman admitted to distributing to various retail and wholesale businesses throughout New England and New York a product called Golden Night, which falsely was represented to be an all-natural herbal supplement designed for male sexual enhancement. In fact, U.S. Food and Drug Administration (FDA) laboratory tests demonstrated Golden Night contained the prescription drug sildenafil, commonly known as the active ingredient in Viagra. 

Guzman’s guilty plea is announced by United States Attorney Aaron L. Weisman and Jeffrey Ebersole, Special Agent in Charge of the FDA, Office of Criminal Investigations.

According to information presented in court, in 2015, an FDA inspection of a wholesaler in New York revealed quantities of Golden Night for sale at convenience stores and gas stations in the New York area.  The FDA subsequently issued a public notification advising consumers not to purchase Golden Night. The notice explained that FDA analysis confirmed the presence of sildenafil, the active ingredient in Viagra and that these ingredients were not declared on the label. The notice warned the undeclared ingredients may lower blood pressure to dangerous levels and other potential health consequences.

An undercover FDA agent emailed the notice to Guzman and asked whether Golden Night contained Viagra.  Guzman falsely replied that Golden Night did not contain Viagra, and claimed the product was safe to take.  Guzman subsequently sent the FDA notice to his supplier in China and asked what to do about the FDA notice.  The supplier in China advised changing the brand name of the product and continuing to sell it. Guzman admitted continuing to sell Golden Night as usual. An FDA agent subsequently purchased Golden Night which again tested positive for sildenafil.

A court-authorized search of Tony’s Enterprise in June 2018, revealed additional inventory of Golden Night, packaging and marketing materials, and various business records. In addition, email search warrants revealed numerous instances in which Guzman falsely answered customer inquiries about Golden Night by stating it was all-natural and did not contain Viagra or require FDA approval.

Laboratory tests of Golden Night also detected the presence of oxytetracycline HCI, also known as Terramycin, a discontinued prescription antibiotic that was used to treat specific diseases in humans. It is currently used in livestock feed to prevent diseases and infections in cattle and poultry.

Guzman admitted that between 2013 and 2018, Tony’s Enterprise sold more than 500,000 Golden Night capsules totaling over $1 million in sales.

Guzman is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on September 9, 2019. Fraudulent introduction of a misbranded drug is punishable by statutory penalties of up to 3 years imprisonment and a $250,000 fine.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.     

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KANSAS CITY, KAN. - A Miami County man who pleaded guilty to possessing child pornography was sentenced today to 70 months in federal prison, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay $5,000 to the Justice for Victims of Trafficking Act Fund and $3,000 to each of 15 victims who requested restitution.

Joel Haines, 61, Paola, Kan., pleaded guilty to one count of possessing child pornography. At sentencing, the prosecutor said investigators found 1,433 digital child pornography images on Haines’ computer. The images included children under the age of two being sexually abused as well as images of girls ages 6 to 12.

McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.