BILLINGS—Stephen Phillip Casher, a former Rocky Mountain Bank official, pleaded not guilty to multiple crimes in an alleged scheme to defraud the bank, U.S. Attorney Kurt Alme said today.

An indictment charges Casher, 45, of Billings, with two counts of bank fraud, one count of money laundering and one count of blackmail. The indictment is merely an accusation, and Casher is presumed innocent until proven guilty.

U.S. Magistrate Judge Timothy J. Cavan presided and continued Casher’s release pending further proceedings.

If convicted of the most serious crime, Casher faces a maximum 30 years in prison, a $1 million fine and five years of supervised release.

The indictment alleges Casher, who was Rocky Mountain Bank’s market president, defrauded the bank in September 2014 by approving a bank loan to Larry “L.J.” Price, for which Price was a guarantor, without disclosing the existence to the bank of other outside loans that Casher had arranged and was aware of. The indictment further alleges that Casher in February 2016 approved a bank loan to an entity controlled by Price without disclosing to the bank additional outside loans he and others had made to Price and without disclosing information concerning Price’s true net worth and cash liquidity.

The indictment also alleges Casher engaged in a monetary transaction that involved property derived from the bank fraud and that he demanded and received interest in real estate from an individual under a threat of informing about a violation of the law.

Pacer case reference. 19-65.

The progress of this may monitored through the U.S. District Court calendar and the PACER system. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the indictment of ROLAND MATHYS for his participation in a scheme to trade on material, nonpublic information (the “Inside Information”) regarding a tender offer by Sanofi, S.A (“Sanofi”) for Bioverativ, Inc. (“Bioverativ”).  After the tender offer was announced, MATHYS’s trading yielded over $4.7 million in illegal profits.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Roland Mathys engaged in insider trading, and profited to the tune of nearly $5 million – until his scheme was exposed.  He allegedly used confidential information about a pending acquisition of a company to purchase call options in that company, knowing that the value of these options would balloon after the acquisition was publicly announced.  Working with the FBI and the SEC, we remain committed to policing the marketplace to take the profit out of cheating.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “Every time someone engages in insider trading, they illegally stack investment odds in their favor.  Mathys’s alleged behavior is not only dishonorable, but illegal.  While this type of activity might initially prove profitable, in the long run there’s nothing to be gained.”

According to the allegations contained in the Indictment filed today in Manhattan federal court[1]:

Background of Sanofi’s Tender Offer for Bioverativ

On November 3, 2017, Sanofi, a multinational pharmaceutical company headquartered in Paris, France, delivered to Bioverativ, a multinational biotechnology company headquartered in Waltham, Massachusetts, a non-binding proposal offering to acquire all outstanding shares of Bioverativ at a price of $98.50 per share in cash.  Bioverativ specialized in the development and commercialization of therapies for the treatment of hemophilia, and its stock was traded under the ticker symbol “BIVV” on the NASDAQ Stock Exchange.  On December 5, 2017, Sanofi and Bioverativ entered into a confidentiality agreement regarding the acquisition negotiations.  On December 18, 2017, representatives of Sanofi and Bioverativ met in New York, New York, for a management presentation, which included a review of Bioverativ’s business, products and pipeline, operations, and projections.  On January 4, 2018, Sanofi indicated that it would be willing to pursue an acquisition of Bioverativ at a price of $105 per share, subject to Sanofi’s successful completion of due diligence and Bioverativ’s agreement to engage exclusively with Sanofi.  On January 6, 2018, Sanofi and Bioverativ executed an exclusivity agreement, which provided Sanofi with the right, through January 26, 2018, to negotiate exclusively the potential acquisition of all the outstanding shares of Bioverativ at the price of $105 per share.

The Sanofi Executive Acquires Inside Information About the Acquisition of Bioverativ and Discloses it to his Family Member

By January 7, 2018, Individual-1, in connection with his employment as an executive vice president at Sanofi, learned that an acquisition of Bioverativ by Sanofi was being negotiated, that such an acquisition was likely to happen, and that such an acquisition would take place in the near future, which Inside Information he had a duty to keep confidential.  On or about January 8, 2018, during a telephone conversation, Individual-1 disclosed to his family member, Individual-2, Inside Information regarding Sanofi’s planned acquisition of Bioverativ. Specifically, Individual-1 told Individual-2, in sum and substance, that Sanofi was acquiring a Boston-based biotech company involved in developing a hemophilia drug.

Individual-2 Discloses Inside Information about the Acquisition of Bioverativ to MATHYS

Between January 8, 2018, and January 12, 2018, Individual-2 disclosed to his friend MATHYS Inside Information regarding Sanofi’s planned acquisition and the fact that Individual-2 had learned the Inside Information from Individual-1.  Based on MATHYS’s prior dealings with Individual-1, MATHYS knew that Individual-1 was an executive vice president at Sanofi.

From January 12, 2018, through on January 19, 2018, MATHYS purchased approximately 1,607 Bioverativ call option contracts, all with an expiration date of February 16, 2018, for a total purchase price of approximately $170,071.  MATHYS’s purchases constituted a significant percentage of the trading in Bioverativ call options on each day, as shown in the table below.

The Acquisition is Announced, and Bioverativ’s Share Price Increases by Approximately 62%

On the evening of Sunday, January 21, 2018, Sanofi and Bioverativ entered into a merger agreement (the “Merger Agreement”).  Pursuant to the Merger Agreement, Sanofi would commence a tender offer no later than 15 business days after the date of the Merger Agreement, to acquire all of the outstanding shares of common stock of Bioverativ, at a purchase price of $105.00 per share (the “Tender Offer”), which represented a premium of approximately 64% over Bioverativ’s closing price the prior trading day.

On the morning of Monday, January 22, 2018, prior to the opening of the financial markets in Paris and New York, Sanofi and Bioverativ issued a joint press release announcing the signing of the Merger Agreement (the “Announcement”).

On January 22, 2018, following the Announcement, Bioverativ shares opened trading at $104.21 per share, reached an intra-day high of $104.30 per share, and closed at $103.79 per share, an increase of approximately 62% over the closing price on the prior trading day.  Since Bioverativ shares had begun trading on the NASDAQ in January 2017, they had never closed at or above $64.12.

MATHYS’s Insider Trading Generates an Illicit Profit of Over $4.7 Million

On January 22, 2018, MATHYS sold all the Bioverativ call option contracts that had a strike price of $65 or $70, for a net profit of approximately $2,518,622.70.  On January 23 and 26, 2018, he sold 325 Bioverativ call option contracts with a strike price of $75, for a net profit of approximately $711,000.81.

On January 26, 2018, at the request of his relationship manager at Credit Suisse, Ltd. (the “Relationship Manager”), MATHYS executed a declaration in which he represented that his transactions in Bioverativ call options were based only on publicly available information and/or personal market analysis, and that no Inside Information was used.  MATHYS also stated to the Relationship Manager that MATHYS was extremely surprised by the developments relating to Bioverativ, that he had nothing to do with Bioverativ or Sanofi, and that he did not have any information relating to Bioverativ’s acquisition when he purchased Bioverativ options.  

On February 8, 2018, the Securities and Exchange Commission (the “SEC”) obtained a preliminary injunction freezing the approximately $3,229,623.51 in proceeds that MATHYS had generated from selling a portion of the Bioverativ call options (the “Preliminary Injunction”).  On February 16, 2018, pursuant to a court order, the SEC directed the liquidation of the remaining 550 Bioverativ call option contracts, which resulted in net profits of approximately $1,568,732.47, which were also frozen pursuant to the Preliminary Injunction.

Between February 8, 2018, and February 10, 2018, MATHYS acknowledged to Individual-2, in sum and substance, that MATHYS had traded in Bioverativ based on the Inside Information that MATHYS had obtained from Individual-2.

*                    *                    *

MATHYS, 32, is a citizen and resident of Switzerland.

MATHYS is charged with one count of fraud in connection with a tender offer, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.  The case has been assigned to U.S. District Judge Denise Cote.

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

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

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

WASHINGTON – Jody Lambert, 24, was sentenced today in the Eastern District of Louisiana to 120 months imprisonment for conspiring with members of his family to prevent D.P., a woman with cognitive disabilities, from exercising her right to rent and occupy a dwelling without injury, intimidation, and interference because of her cognitive disabilities.

“Lambert and his co-defendants conspired to deprive a vulnerable victim of a safe and secure place to live, forcing her to live outside in a padlocked cage, because of her disability,” said Assistant Attorney General Eric Dreiband. “This disgraceful conduct is a hate crime, and the Department of Justice will continue to make combatting hate crimes a high priority. Today’s sentencing reflects our commitment to seeking justice for victims.”

“Ensuring the Civil Rights of all citizens, especially the most vulnerable is paramount to our country,” said Peter G. Strasser U.S. Attorney for the Eastern District of Louisiana. “The sentencing of Mr. Lambert sends a clear message that anyone who denies a citizen her rights will be held accountable.”

"Today's sentencing of Jody Lambert, for his inhumane treatment of a family member, serves as a stark reminder that justice does prevail,” said Eric Rommal, FBI New Orleans Special Agent in Charge.  “As the primary federal agency charged with enforcing federal civil rights statutes, the FBI New Orleans Field Office will continue to aggressively investigate all credible civil rights allegations in Louisiana."

On Oct. 18, 2018, Lambert pleaded guilty to one count of civil rights conspiracy. At the plea hearing, Lambert admitted that for several months prior to June 30, 2016, in Amite, Louisiana, he conspired with other members of his family to force D.P. to live in a locked cage in their backyard because of her cognitive disabilities and because they did not want her living in the family’s mobile home. Lambert admitted that he and his family members locked D.P. in the cage at night with a metal chain and padlock, and that he and other family members had placed branches and a tarp over the cage to hide it from view. Lambert further admitted that while locked inside the cage, D.P. was required to use a five-gallon bucket as a toilet. Lambert also admitted that, prior to forcing D.P. to live in the cage, he and his family had forced D.P. to live in their backyard in a locked tent and in a locked shed. Lambert admitted that throughout the time D.P. lived with the family in Amite, Louisiana, Lambert and his conspirators subjected D.P. to routine physical violence and threats of physical violence in order to intimidate D.P. into these living conditions.

This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office, and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.

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WASHINGTON – Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that 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 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, and 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.”

“Schemes that target elderly and vulnerable victims are unconscionable,” stated Richard P. Donoghue, United States Attorney for the Eastern District of New York. “The Transnational Elder Fraud Strike Force will use every resource available to ensure that, no matter where they are, perpetrators of elder fraud will be stopped and prosecuted.”

“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.”

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 three 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.

An Akron man pleaded guilty to leading a conspiracy to bring large amounts of fentanyl and carfentanil into the United States from China, then sell the drugs in Akron and Lorain, then launder the profits.

Donte L. Gibson, 40, is scheduled to be sentenced September 23. He pleaded guilty to conspiracy to possess with intent to distribute fentanyl and carfentanil and conspiracy to launder money.

This took place between May 2016 and February 2018, according to court documents.

Donte and Audrey Gibson purchased fentanyl and carfentanil from China over the internet, and had the drugs shipped to locations in the Akron-Canton area through the U.S. Postal Service. They directed others to open post office boxes throughout the area, and Audrey Gibson retained control of all the post office box keys, according to court documents.

Co-conspirators picked up the packages containing fentanyl and carfentanil at the P.O. boxes and brought the packages to the Gibsons’ home on Popham Street. Donte Gibson cut the drugs with other white powder, turning 70 or 80 grams of pure fentanyl or carfentanil into seven kilograms of saleable product, according to court documents.

The Gibsons then distributed the drugs to others for sale in Akron and Lorain. The Gibsons used various residences and storage units to store the drugs and cash. They stored the drugs at their home on Popham Street, according to court documents.

Audrey Gibson in 2015 formed JayT AllServices LLC, which purported to be in the business of remodeling, painting homes and cleaning out homes. Donte Gibson later stated that he was an employee of the his wife’s company and that he helps do home improvement work, according to court documents.

In 2016, Audrey Gibson formed Pound Cake Entertainment LLC, which used the web site IAmPoundCake.com. The web site purported to sell clothing and “one of a kind items” as well as offering access to a members-only Snapchat account featuring Audrey Gibson “being flirty or nasty depending on the day,” according to court documents.

In 2017, Dontaysha Gibson formed G’s Car Care and Detail LLC, with the stated purpose of the company being car care sales and detailing. Donte Gibson later stated it was his daughter’s company but that he managed it for her, according to court documents.

The Gibsons opened bank accounts in connection to all three companies, according to court documents.

Audrey Gibson in 2017 opened a Saks Fifth Avenue Store Card and between April and December 2017 made payments on her card totaling $208,504 by using cash in store in Beachwood. She made purchases from Saks Fifth Avenue totaling $686,850 between July 2016 and February 2018 and paid for them with a combination of cash, credit cards and her Saks card. The purchases included handbags from Burberry, Chanel and Gucci, various Louis Vuitton items, Saint Laurent shoes, as well as cosmetics, fragrances and sunglasses, according to court documents.

Prosecutors are seeking to forfeit more than $280,000 in cash, two firearms and ammunition seized as part of the investigation, as well as the home at 2946 Popham Street in Akron.

Audrey Gibson previously pleaded guilty to related crimes and is awaiting sentencing.

“This defendant brought huge quantities of deadly fentanyl and carfentanil into Akron, threatening the lives of so many of our neighbors, friends, and family,” U.S. Attorney Justin Herdman said. “They set up fake companies to launder their dirty drug money and now will have to answer for his crimes”

“This case demonstrates the lengths drug dealers will go to in order to obtain deadly drugs to feed the addiction of their customers,” said FBI Special Agent in Charge Eric B. Smith. “This group flaunted their lucrative drug trafficking organization proceeds by purchasing homes, cars and other items in an attempt to hide their cash.  The FBI will continue working with our law enforcement partners to help rid our communities of the individuals that bring poison to our streets.”

“The harm inflicted by opioids is matched only by the profit potential for those who sell them,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "This is an important victory for the citizens of Northern Ohio. These defendants not only fueled the opioid drug problem in Northern Ohio, but they supported addiction in several parts of the country. IRS-CI worked with the U.S. Attorney’s Office and its law enforcement partners to disrupt the flow of money -- the lifeblood that allows these organizations to proliferate. The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations.”

“Fentanyl and carfentanil are by far the deadliest illegal drugs that we are up against in the law enforcement community,” said HSI Acting Special Agent in Charge Angie Salazar. “As this indictment clearly demonstrates, HSI is fully committed to bringing to justice all of the criminal groups and individuals who distribute this lethal poison in our community.”

Akron Police Chief Kenneth Ball said: “I feel a strong sense of relief knowing that a group of criminals that had a major role in the city's battle against drugs, and the companion, devastating effects of addiction, will be held accountable. I am proud of the work of Akron's team and our partners with the Safe Streets Task Force. Gibson and his conspirators have been justly charged, they now need to be justly tried and sentenced.”

This case was investigated by the FBI’s Safe Streets Task Force -- which is comprised of agents and officers from the Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service, Internal Revenue Service and the Akron Police Department. It is being prosecuted by Assistant U.S. Attorney Mark S. Bennett.

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that NICHOLAS ROTUNDA ALLEN, age 39, an inmate in Jimmy Autry State Prison in Pelham, Georgia, pleaded guilty yesterday before United States District Judge Martin L.C. Feldman to conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 371, for his role in perpetrating a grand jury fraud scam and victimizing a resident of the Eastern District of Louisiana.

On November 6, 2017, and November 7, 2017, ALLEN used a contraband cellular telephone to contact Victim A, a resident of Metairie, Louisiana, from inside the state prison.  Although he was not permitted to have a phone inside the jail, ALLEN obtained the phone from a non-incarcerated co-conspirator.  The cellular telephone ALLEN used was associated with two Georgia-based phone numbers, but heattempted to avoid detection and make it appear as though he was located within the New Orleans area by utilizing a “spoofing” application that made it appear to Victim A that someone with a local phone number, (504) XXX-5237, was contacting him.

ALLEN pretended to be a Deputy United States Marshal and informed Victim A that he had unlawfully failed to report for jury duty service for the United States District Court for the Eastern District of Louisiana.  ALLEN further told Victim A that because he had failed to appear for jury duty, a warrant had been issued out of the Eastern District of Louisiana for Victim A’s arrest.  ALLEN said that Victim A had the choice of either being arrested on the warrant or paying a $5,500 fine to have the arrest warrant dismissed. Victim A paid the fine by buying a series of pre-paid cash cards and giving the account numbers to ALLEN.  Thereafter, Victim A paid ALLEN by buying a total of eleven (11) pre-paid cash cards and giving the cards’ account numbers to ALLEN. 

DAYTON – A Dayton man was sentenced today in U.S. District Court to 180 months in prison and 25 years of supervised release for attempting, and conspiring, to join the Islamic State of Iraq and al-Sham (ISIS).  U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Assistant Attorney General for National Security John C. Demers and Special Agent in Charge Todd A. Wickerham of the FBI’s Cincinnati Division made the announcement.

“Alebbini was prepared to kill soldiers and citizens of the United States, the Kingdom of Jordan, and coalition partners fighting against ISIS.  Indeed, Alebbini was prepared to kill any person who did not accept ISIS as the Islamic Caliphate,” said U.S. Attorney Glassman. “Prison is the right place for him.”

“Alebbini was determined to travel overseas for the purpose of joining ISIS and engaging in violence in support of the foreign terrorist organization,” said Assistant Attorney General Demers.  “Notwithstanding pleas from others close to him, Alebbini declared that he is a terrorist and decided to move forward with his plan to join ISIS.  Thanks to the great work of the agents, analysts, and prosecutors who are assigned to this case, Alebbini’s plans were thwarted and he is being held accountable for his crimes.”

Laith Waleed Alebbini, 28, was convicted following a bench trial in November and December 2018 before U.S. District Judge Walter H. Rice.

Alebbini attempted, and conspired, to provide material support and resources to ISIS in the form of personnel, namely himself.

Alebbini, a citizen of Jordan and a U.S. legal permanent resident, was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint.

Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding pass in hand for a flight to Amnan, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to forego the flight to Jordan and instead make his way from Turkey into Syria to join ISIS.

According to court documents and testimony, on April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “The Islamic State is fighting a survival war . . . I, cousin, want to go to be an inghimasi soldier.”  

As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation.  

On April 26, 2017, about one hour before Alebbini arrived at the Cincinnati/Kentucky International Airport, several relatives pleaded with Alebbini not to join ISIS.  Alebbini responded in three separate back-to-back text messages:  “Do you think I am a criminal”  “I am a terrorist”  “I am mujahid.”

U.S. Attorney Glassman and Assistant Attorney General Demers commended the investigation of this case by the Joint Terrorism Task Force, which includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.

First Assistant Vipal J. Patel and Assistant U.S. Attorney Dominick S. Gerace of the Southern District of Ohio and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted this case.

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

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Raul Everado Ledesma Abarca, 36, of San Diego, California of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, possession with intent to distribute five kilograms or more of cocaine, and maintaining a drug-involved premises. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.   

Assistant U.S. Attorneys Michael J. Adler and Jeremiah E. Lenihan, who are handling the prosecution of the case, stated that between September 2014 and September 2016, the defendant, along with co-defendant Armando Ernesto Abarca and others, conspired to possess and distribute cocaine. The defendants rented a storage unit in Amherst, NY, to store the cocaine. The unit was rented on the same day that a 104 kilogram shipment of cocaine arrived in Buffalo. A total of 43 kilograms of cocaine were discovered after the unit was purchased at an auction due to delinquent rent payments. The fingerprints of both the defendant and Armando Abarca were discovered on items in the unit. 

Prior to the discovery of the cocaine in Amherst, the Abarcas were investigated for cocaine trafficking in Ohio. The Government presented evidence at trial of the seizure of 55 kilograms of cocaine in Dayton, OH, in a vehicle registered to a Buffalo, NY address. Approximately half of the 55 kilograms was intended for the defendant’s distribution operation based out of Columbus, OH. 

Armando Ernesto Abarca, 22, of Modesto, California, was previously convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, and sentenced to serve 168 months in prison.

The verdict is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Internal Revenue Service, Criminal Investigations Division, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; and the Amherst Police Department, under the direction of Chief John Askey. Additional assistance was provided by ICE-HSI in Los Angeles, California; DEA in Columbus, OH; and DEA in Dayton, OH. 

Sentencing is scheduled for October 21, 2019, before U.S. District Judge Elizabeth A. Wolford, who presided over the trial.

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NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that JOHN ANTHONY MARSH, age 55, of Atlanta, Georgia pled guilty yesterday to a one-count bill of information charging him with identity theft in violation of Title 18, United States Code, Section 1028(a)(7). 

According to court documents, in 2016, MARSH opened a business in New Orleans called Magazine Medical Group & Associates, LLC (“Magazine Medical”) that provided ophthalmological services.  MARSH opened Magazine Medical at the same location as another medical clinic that had provided ophthalmological services, Business 1.  Between June 2016 and September 2016, MARSH used Business 1’s name when submitting claims for medical services to Medicare and other health care benefit programs to make it appear that those purported medical services were performed at Business 1.  

Additionally, according to court documents, during that same time period, MARSH used the National Provider Identifier of Physician 1, who previously worked for Business 1, to submit claims to Medicare and other health care benefit programs making it appear as though Physician 1 performed medical services at Magazine Medical.  Physician 1 neither worked for MARSH or Magazine Medical nor treated any patients for ophthalmological services at that clinic.

As reimbursement for the fraudulent claims that MARSH was responsible for submitting through Magazine Medical, Medicare and other health care benefit programs issued checks to Business 1 and Physician 1.  MARSH received and deposited these checks into his bank account.  In total, between June 2016 and September 2016, MARSH fraudulently caused billings to Medicare and other health care benefit programs totaling approximately $77,198 for medical services that were not provided by Physician 1, and received approximately $20,669.67 for these fraudulent claims.

MARSH faces a possible maximum sentence of 15 years imprisonment and a $250,000 fine. 

U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Department of Health and Human Services for their work investigating the case.   

The case is being prosecuted by Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Duane A. Evans.

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

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Wright, 56, of New York, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to commit wire fraud and aggravated identity theft. The charges carry a minimum penalty of two years in prison, a maximum of 22 years, and a $500,000 fine.

Assistant U.S. Attorneys Jonathan P. Cantil and Stephanie Lamarque, who are handling the case, stated that December 2016 and September 2018, the defendant conspired with Jeriel Slay, Angela Slay, Sirr Wright, and others to defraud multiple victims. As a part of their scheme, Jeriel and Angela Slay, who are siblings, stole the identities of unsuspecting individuals and created fictitious Limited Liability Companies (LLCs), with company names indicating ownership by the victims. The defendants then opened bank accounts under the names of the LLCs and fraudulently transferred money from a victim’s actual bank account to the LLC bank account.  

For example, Jeriel Slay fraudulently obtained Victim 1’s name, address, birthdate, social security number, and other information, and then opened an LLC, and a bank account in the name of the fraudulent LLC. Jeriel Slay then contacted Victim 1’s legitimate financial institution and transferred money from Victim 1’s legitimate account via wire transfer to the fraudulent LLC bank account. Jeriel Slay, using device-making equipment, then created fraudulent driver’s licenses, fraudulent utility bills, and other identification documents in the name of Victim 1. The fraudulent driver’s license had Victim 1’s information but Michael Wright’s, image on the card. Using these fraudulent identification documents, Wright went to the bank that serviced the fraudulent LLC bank account and withdrew the funds from that fraudulent account. Wright executed this scheme against approximately 10 victims, one of whom resides in the Western District of New York. The financial loss totaled $161,100.

Charges remain pending against co-defendants Jeriel Slay, Angela Slay, and Sirr Wright. 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 an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert.

Sentencing is scheduled for October 10, 2019, at 12:30 p.m. before Judge Arcara.

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

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew A. Urquhart, 32, of Seneca Falls, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of child pornography. The charge carries a maximum penalty of 20 years in prison, a lifetime term of supervised release, and a $250,000 fine.

Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that FBI Special Agents identified the defendant actively trading child pornography from a trailer residence in Seneca Falls. Subsequently, agents, with assistance from the Seneca Falls Police Department and Seneca County Sheriff’s Office, searched two residences that Urquhart occupied during the period in question. Digital items belonging to Urquhart were seized. A forensic analysis determined that the defendant possessed multiple images and videos of child pornography, including images that depicted the sexual abuse of prepubescent minors. 

The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Seneca Falls Police Department, under the direction of Chief Stuart W. Peenstra, and the Seneca County Sheriff’s Office, under the direction of Sheriff W. Timothy Luce. 

Sentencing is scheduled for September 18, 2019, before Judge Wolford.

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

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Demetrius Jackson, 43, of Rochester, NY, pleaded guilty today before U.S. District Judge Charles J. Siragusa to possession with intent to distribute cocaine, and possession of a firearm and ammunition by a convicted felon. The charges carry a maximum penalty of 20 years in prison, and a fine of $1,000,000.

Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that Jackson was arrested after police officers served a court-authorized search warrant at his residence on Wadsworth Street in Rochester, and found controlled substances and a loaded firearm. 

While searching the location, police officers found a green container with 10 small ziplock bags of cocaine in a bedroom which Jackson later admitted belonged to him.  In the same bedroom, secreted in a crawl space, officers found a Taurus .45 caliber semiautomatic handgun which was loaded with 11 rounds of ammunition. In the living room, officers found a black container with additional quantities of cocaine, heroin and marijuana.  A digital scale, typically used to weigh drugs for distribution, was located on a kitchen counter.

Jackson spoke with officers after he was arrested and admitted he was selling cocaine through a window in the residence. He said he had been selling cocaine for several weeks to earn money and acquired the handgun by exchanging cocaine for it.

The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative.  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.

The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.

Sentencing is scheduled for October 1, 2019, at 10:00 a.m. before Judge Siragusa.

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CHARLESTON, W.Va. – A man from Detroit, Michigan, pled guilty to a federal drug trafficking charge, announced United States Attorney Mike Stuart.  Eddie Riago-Javone Bryant, 27, pled guilty to possession with intent to distribute heroin before Senior United States District Judge John T. Copenhaver, Jr.  Stuart commended the investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT), the Charleston Police Department, the West Virginia State Police, and the Drug Enforcement Administration.

“Another Detroit drug dealer is convicted,” said United States Attorney Mike Stuart.  “They are not welcome in the Southern District of West Virginia.”

According to public court hearings and Bryant’s plea agreement, Bryant sold drugs to a police undercover confidential informant in Charleston and Cross Lanes, West Virginia, on February 8, 2018; February 12, 2018; and February 14, 2018.  Bryant sold drug mixtures containing heroin, fentanyl, and phencyclidine (PCP).  On February 15, 2018, investigators arrested Bryant at the Cross Lanes Motel 6 and found that he was carrying around 30 grams of a heroin mixture, $688 in drug proceeds, and a digital scale.

After Bryant’s release from jail, he again sold a mixture of heroin and fentanyl to a confidential informant on April 18, 2018, in Charleston.  Investigators arrested Bryant and executed a search warrant at his apartment on West Washington Street.  They recovered approximately 12 grams of a heroin and fentanyl mixture and found a .22 caliber revolver hidden in a cereal box in the kitchen cabinets.

Bryant faces up to 20 years in federal prison when he is sentenced on September 10, 2019.  Assistant United States Attorneys Drew O. Inman and Joshua C. Hanks are handling the prosecution.

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SYRACUSE, NEW YORK – Naven Conley, age 75, of Cazenovia, New York, pled guilty today to three counts of sexual exploitation of a child, announced United States Attorney Grant C. Jaquith, Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and New York State Police Acting Superintendent Keith Corlett.

In entering his guilty plea today in United States District Court, Conley admitted that on three separate occasions he engaged in sexually explicit conduct with a minor under seven years of age  and produced video recordings of that conduct over the course of three years.

As part of his guilty plea, Conley admitted that from 2016 through 2018 he used a cellular telephone to record sex acts that he engaged in with a child who was under the age of seven. In addition, to that conduct, Conley also admitted that he possessed 21 images and 15 video files depicting child pornography that he received over the internet.  Conley further admitted that he showed those images and videos to the child victim as part of his efforts to convince the child to engage in sex acts with him.

United States Chief District Judge Glenn T. Suddaby will sentence Conley on October 23, 2019. He faces a mandatory minimum term of 15 years imprisonment on each count, with a maximum penalty of 30 years imprisonment per count. He will be required to serve a term of supervised release of a minimum of 5 years, and up to life, following his term of imprisonment.  Conley will also be required to register as a sex offender.

Conley’s case was investigated by U.S. Homeland Security Investigations (HSI) and the New York State Police, Troop D, Computer Crimes Unit.  The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown

SYRACUSE, NEW YORK – Timothy J. Oravec, age 60, formerly an employee at the United States Department of Housing and Urban Development (HUD) in Albany, New York, was sentenced yesterday afternoon to serve four months imprisonment and three years of supervised release by Senior United States District Judge Frederick J. Scullin, Jr. for committing wire fraud as part of a scheme to defraud the United States and HUD employees by falsely claiming that he had cancer and receiving and using leave time donated to him by his coworkers.  The announcement was made by United States Attorney Grant C. Jaquith and Christina Scaringi, Special Agent in Charge for HUD’s Office of Inspector General (OIG), Northeast Region.

As part of his previous guilty plea, Oravec admitted that in 2013 he created a number of letters that purported to be from medical providers at two facilities that treat cancer patients and provided those fabricated letters to his management at HUD to support his assertion that he was then under care and treatment for cancer when that was not the case.  He also admitted that he applied for and was accepted into HUD’s Voluntary Leave Transfer Program (“VLTP”), which permits HUD employees with a qualifying medical condition to receive donations of annual leave from other HUD employees and use that leave to take paid time off.  Oravec received leave donations from HUD employees through the VLTP and used that donated time to take paid leave, resulting in salary payments to which he was not entitled. Oravec’s scheme was discovered after a HUD supervisor in 2018 questioned a subsequent fraudulent doctor’s note in support of a request for sick leave. 

This case was investigated by HUD’s Office of Inspector General (HUD-OIG) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.

OKLAHOMA CITY – A federal grand jury has returned an indictment charging PATRICK LEE AMADORE TRAVIS,25, and MIRANDA NICHOLE RHYNARD, 26, both of Ponca City, with illegal distribution of steroids, announced United States Attorney Timothy J. Downing.

According to the indictment, Travis and Rhynard conspired to distribute anabolic steroids, which are Schedule III controlled substances, from March 2018 until November 1, 2018.  The charges also include unlawful importation of pharmaceuticals with a counterfeit Viagra trademark, manufacturing anabolic steroids, trafficking in counterfeit goods, and possession of anabolic steroids with intent to distribute.  In addition, Travis is charged with possessing a Kel-Tec PMR-30 pistol in furtherance of anabolic steroid trafficking.

An affidavit in support of a search warrant issued on June 11, 2019, alleges that Travis and Rhynard own an internet-based company called Swolescriptz Research Lab and Swole-RX.  According to the affidavit, investigators found three pill presses, bags of powder from China, and a firearm in a cargo trailer when they visited the defendants’ Ponca City property on November 1, 2018.  The affidavit states laboratory tests have confirmed the presence of anabolic steroids.

The affidavit further reports the defendants continued operating their business after the November 2018 visit from investigators.  During this time, they allegedly offered for sale substances they claimed would cause "increase in muscle mass," although they included a disclaimer that "[a]ll products listed on this website are for research purposes only and are not for human consumption."

Travis and Rhynard were arrested in Ponca City on the morning of June 11 and appeared for arraignment in Oklahoma City that afternoon.  Rhynard was released subject to conditions pending trial.  Travis has been temporarily detained in advance of a detention hearing scheduled for June 14.

If convicted of conspiracy, manufacturing anabolic steroids, or possession of anabolic steroids with intent to distribute, both defendants could be imprisoned for ten years on each count and be subject to a fine of $500,000 per count.  These charges also call for a term of supervised release of not less than two years and up to life.  Trafficking in counterfeit goods could carry a prison term of twenty years and a $5,000,000 fine.  Unlawful importation could result in a prison term of twenty years and a fine of $250,000.  Finally, a conviction on the gun count against Travis would trigger a five-year mandatory minimum sentence, consecutive to any other imprisonment imposed.

This case is the result of an investigation by the Drug Enforcement Administration and the 8th District Attorney’s Drug and Major Crime Unit, with assistance from the Ponca City Police Department and U.S. Homeland Security Investigations.  The case is being prosecuted by Assistant U.S. Attorney Matthew P. Anderson.

The public is reminded that these charges are merely allegations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.  Reference is made to public filings for more information.

A former Miramar Police Department employee was sentenced to prison today for participating in a fraud scheme.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Brian M. Chen, 39, of Weston, Florida, a former Information Technology Analyst with the police department for the city of Miramar, Florida, was sentenced today to 37 months in prison by U.S. District Judge William P. Dimitrouleas, after previously pleading guilty to a three-count Information charging him in each count with mail fraud, in violation of Title 18, United States Code, Section 1341.  Chen was order to pay $343,797.02 in restitution to the City of Miramar.   After sentencing, Chen was remanded to the custody of the Bureau of Prisons to begin serving his prison sentence.

According to the court record, including stipulated statements of fact,the State of Florida had a contract with Verizon Wireless for a cellular telephone service plan, which included the acquisition by state and local agencies of cellular telephones and devices.  The contract allowed state and local agencies in Florida to obtain iPhones and Android cellular telephones for free or at a discounted rate, provided that the cellular telephones were obtained for official use and that Verizon Wireless was utilized as the service provider.  In his position as Information Technology Analyst, Chen was the administrator of the plan and was in charge of overseeing the purchase and use of cellular telephones and service.

Beginning in or about 2013, Chen, through his position as Information Technology Analyst with the Miramar Police Department, ordered cellular telephones online through the Verizon “My Business” portal for free or at a substantial discount with the intent to unlawfully resell those cellular telephones. Upon ordering the cellular telephones, Chen caused Verizon to initiate a monthly service plan for each line of service.   Chen attempted to suspend the monthly service plan for each cellular telephone in order to conceal his illegal acquisition of them.

Chen offered the illegally obtained telephones for sale individually through an online auction and resale provider and also sold the illegally obtained telephones in bulk to persons in the business of reselling cellular telephones.   Due to the volume of telephones illegally purchased and the associated lines of service plans, some service plans could not be continuously suspended. Miramar Police Department incurred a loss of approximately $350,000 by paying for service plans for telephones purchased by Chen pursuant to the fraudulent scheme.   From in or about 2013, through on or about November 29, 2018, Chen illegally profited, from the scheme, by receiving approximately $800,000 through the sale of over a thousand illegally obtained cellular telephones.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in connection with this matter.  She thanked the Miramar Police Department for their assistance.  The case was prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul F. Schwartz.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Wilmer Flores Mejia, age 44, a naturalized citizen of the United States residing in Cheverly, Maryland, to 14 years in federal prison, followed by 25 years of supervised release, for coercion and enticement of a minor to produce child pornography.  Judge Grimm also ordered that, upon his release from prison, Flores Mejia must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).  The sentence was imposed on June 13, 2019.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.

According to his plea agreement, in December 2015, Flores Mejia used a messaging application to communicate with the victim, who was a 15-year-old boy living in El Salvador.  During the course of a sexually explicit conversation, Flores Mejia agreed to pay the victim to send Flores Mejia a sexually explicit photograph of himself, which the victim did.

Flores Mejia’s messaging account showed that he had engaged in other sexually explicit conversation with minor boys on several occasions.  Cellular phones seized from Flores Mejia contain conversations with minor boys, including regarding sexual topics.  A federal search warrant executed at the residence of Flores Mejia in Maryland also recovered a notebook which contained the names and ages of boys from a village in El Salvador, including the name and age of the victim.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.       

United States Attorney Robert K. Hur commended the FBI for its work in the investigation and thanked the Prince George’s County Police Department, U.S. Customs and Border Protection, and the Policia Nacional Civil of El Salvador for their assistance.  Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the federal case.

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Yesterday, following a four-week trial before U.S. District Court Judge Marcia G. Cooke, a federal jury convicted a former Federal Aviation Administration (FAA) Safety Inspector Manuel R. Fernandez, 42, of Miami, of twenty-one criminal counts for his participation in a bribery and fraud scheme.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Todd Damiani, Regional Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General (DOT-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

According to the evidence at trial, from 2010 through June 28, 2013, Fernandez served as a FAA Aviation Safety Inspector with the FAA South Florida Flight Standards District Office (“FSDO”). Patricia Suarez and Rolando Suarez were the co-owners, officers, and directors of AVCOM, a Miami aviation repair company, which was subject to the jurisdiction and official responsibility of the FAA South Florida FSDO.  The evidence showed that, at the same he was working for the FAA, Fernandez held various positions at AVCOM, including Vice President of Operations.

In exchange for Patricia Suarez and Rolando Suarez corruptly providing over $150,000 in cash, as well as jewelry, a cruise, clothing, and approximately $15,000 funneled to Fernandez’s mother, Fernandez violated his lawful and official duties as an FAA Aviation Safety Inspector.  Fernandez provided AVCOM with advanced notice and warnings as to pending FAA inspections of AVCOM, disclosed financial information about AVCOM’s competitors, and provided AVCOM with improperly obtained aviation repair manuals produced by original equipment manufacturers such as Honeywell and Delta, saving AVCOM from paying vast sums of money for this proprietary information.  The evidence further showed that Fernandez provided materially false statements to the FAA and DOT in order to hide his participation in these AVCOM-related activities. Additionally, Fernandez submitted a fraudulent sick leave request to the FAA, utilizing a forged doctor’s note.

Fernandez was convicted of one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C) and (b)(2)(C); fifteen counts of bribery, in violation of Title 18, United States Code, Section 201(b)(2)(C); one count of providing false statements to a federal agency, in violation Title 18, United States Code, Section 1001(a)(2); two counts of wire fraud, in violation Title 18, United States Code, Section 1343; and two counts of aggravated identity theft, in violation Title 18, United States Code, Section 1028A.  Fernandez faces a maximum statutory sentence of 5 years in prison for the conspiracy count of conviction, 15 years in prison for each for the bribery counts, five years in prison for the false statement count, 20 years in prison for each wire fraud count, and a 2-year consecutive mandatory minimum sentence for the aggravated identity theft counts.  In addition, he faces a fine of up to $250,000 or triple the bribery proceeds. 

Rolando Suarez previously pled guilty and was sentenced to 24 months in prison.  Patricia Suarez previously pled guilty and was sentenced to 5 years’ probation with 240 days of electronic monitoring.  Rolando and Patricia Suarez were ordered to jointly pay $711,940.46 in restitution.

Fernandez is scheduled to be sentenced by Judge Cooke on August 28, 2019, at 10:30 a.m. (Case No. 17-20780-Cr-Cooke).

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOT-OIG and FBI in this matter.  She also thanked the Hialeah Police Department, Miami Beach Police Department, and Miami-Dade Police Department for their assistance.  This case is being prosecuted by Assistant U.S. Attorneys Michael Davis and Yeney Hernandez.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

Jackson, Miss. – Valentin Camacho-Alvarez, 27, an illegal alien from Mexico, was sentenced yesterday by United States District Judge Henry T. Wingate to 16 months in federal prison, followed by three years of supervised release, for illegally reentering the United States after being convicted of a felony and deported, announced U.S. Attorney Mike Hurst and Scott Sutterfield, Acting Field Office Director of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) in New Orleans. The defendant pled guilty before Judge Wingate on March 13, 2019. In sentencing to the defendant to serve 16 months, the Court accepted the recommendation of the United States that the defendant be sentenced to the maximum sentence under the applicable guidelines.

On July 24, 2018, an officer with the U.S. National Park Service conducted a traffic stop on the Natchez Trace Parkway in Ridgeland. The passenger, Camacho-Alvarez, provided the officer with a Mexican voter registration card for identification purposes. He was also in possession of a Mexican driver’s license, which he admitted belonged to him. He advised the officer that he was born in Mexico and his parents are citizens of Mexico. ICE agents were requested to the scene for further assistance. Camacho-Alvarez admitted he is a citizen of Mexico and that he was illegally present in the United States. He also admitted to having previously been deported from the United States. He claims he has been living in Fredericksburg, Texas, for the last three years.

Camacho-Alvarez was convicted of driving while intoxicated with a child passenger, in February 2012, and removed from the United States the following month. He was then convicted of illegally re-entering the United States in June 2013, in Texas federal court. He has been deported from the United States on three prior occasions, in May 2009, March 2012, and October 2013.

The case was investigated by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.