NEWARK, N.J. – A former candidate for the Hoboken City Council was convicted today of conspiring to promote a voter bribery scheme by use of the mail, U.S. Attorney Craig Carpenito announced. 

Francis Raia, 67, of Hoboken, New Jersey, was a candidate for Hoboken City Council in 2013. He was convicted of one count of conspiracy to violate the federal Travel Act for causing the mails to be used in aid of voter bribery, contrary to New Jersey state law, during that election. The jury deliberated for one day, following a five-day trial before Senior U.S. District Judge William J. Martini in Newark federal court.

“The defendant in this case tried to rig a Hoboken municipal election by voting multiple times, both for himself and for a ballot question that he supported,” U.S. Attorney Carpenito said. “He did so by deploying his loyal foot soldiers to buy votes from people who he thought were in need of money, and then creating a phony cover story to conceal his tracks. Fortunately, neither federal law enforcement nor the jury was fooled. Today’s verdict underscores this Office’s continued dedication to uncovering, investigating and prosecuting acts of corruption at every level of New Jersey government.”

“The health of our democracy relies on the integrity of our electoral system,” FBI-Newark Special Agent-in-Charge Gregory W. Ehrie said. “When people use corrupt methods to work around that system, it deprives every constituent of their right to be heard through their vote.”

According to documents filed in this case and the evidence at trial:

Under New Jersey law, registered voters are permitted to cast a ballot by mail rather than in person. To receive a mail-in ballot, voters must complete and submit to their County Clerk’s Office an Application for Vote By Mail Ballot (VBM Application). After the VBM Application is processed by the County Clerk’s Office, voters receive a mail-in ballot. 

From October 2013 through November 2013, Raia instructed Dio Braxton, Matt Calicchio, Lizaida Camis, and other conspirators who worked for his campaign, to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2013 Hoboken municipal election. The conspirators provided these voters with VBM Applications and then delivered or mailed the completed VBM Applications to the Hudson County Clerk’s office.

After the mail-in ballots were delivered to the voters, at Raia’s direction, the conspirators went to the voters’ residences and instructed them to vote for Raia and in favor of a ballot referendum that Raia supported that would have loosened rent control restrictions in Hoboken. The conspirators promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken.  Raia and his workers, including Braxton, Calicchio, Camis, and others, checked the ballots to ensure that voters had voted the way that they had instructed them to vote. Raia and his workers also had the voters sign declarations falsely stating that they had been paid in exchange for working on the campaign, when in fact the voters had been paid for their vote. After the election, the voters received $50 checks from a political consulting firm that was paid by Raia’s political action committee. Those $50 checks were never disclosed on Raia’s publicly filed political action committee election reports.

Braxton and Camis previously pleaded guilty to their roles in the conspiracy. Braxton is scheduled to be sentenced on Sept. 10, 2019, and Camis’ sentencing date has yet to be scheduled. Calicchio previously pleaded guilty to violating the federal Travel Act and is scheduled to be sentenced on Sept. 12, 2019. Raia, Braxton, Calicchio, and Camis each face a maximum penalty of five years in prison and a $250,000 fine. 

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s verdict. 

The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that MAHER SALIM, age 41, a resident of New Orleans, Louisiana, was sentenced today by United States District Judge Jay A. Zainey to (3) years after previously pleading guilty to trafficking in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1).  Judge Zainey scheduled a hearing to determine restitution owed to the victims for September 24, 2019.

PHILADELPHIA – United States Attorney William M. McSwain announced that Jason Muzzicato, 43, of Bangor, Pennsylvania was charged by Indictment with possession of firearms by a person subject to a court order restraining him from harassing, stalking and threatening an intimate partner (known as a domestic violence protective order, Protection From Abuse order or PFA), and possession of an unregistered destructive device (an improvised explosive device).

The charges against the defendant stem from his possession of homemade bombs and firearms, while subject to the terms of a PFA order issued by the Northampton County Court of Common Pleas. Under federal law, an individual who is subject to a PFA order is prohibited from possessing firearms.  As alleged in the Indictment, the defendant possessed seven improvised explosive devices and nine firearms, including multiple AR-15 rifles and semi-automatic pistols. 

“Protection From Abuse orders are meant to protect individuals before the situation escalates,” said U.S. Attorney McSwain.  “For good reasons, federal law prohibits subjects of PFA orders from possessing firearms.  Here the defendant’s alleged behavior violated the law and threatened public safety.”

If convicted, the defendant faces a maximum possible sentence of 20 years’ imprisonment, three years’ supervised release, a $260,000 fine, and a $200 special assessment.

The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Reading Field Office, the Washington Township Police Department, the Pennsylvania State Police, and the Bethlehem Fire Department, and is being prosecuted by Assistant United States Attorney John Gallagher.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

Memphis, TN – A local man has pleaded guilty to possession of firearm and drug trafficking. U.S. Attorney D. Michael Dunavant announced the sentence today.

This case was set for a jury trial on June 24, 2019. However, halfway through the first day of trial, the defendant decided to plead guilty after the judge granted a pretrial motion in the favor of the United States and the United States subpoenaed a crucial eyewitness to the defendant's arrest and had him present outside the courtroom ready to testify.

According to information presented in court, on February 12, 2018, Memphis Police Department patrol officers saw a dark green Nissan Maxima parked and running in a stall of a car wash at 539 East Mallory. It was approximately 30 degrees outside and the car was not being washed. Two officers approached the car and smelled marijuana coming from the vehicle. As officers approached, they saw the driver, later identified as Marcus Franklin, 46, with a plastic bag of marijuana in his hand. He attempted to put the bag in his pocket. Officers asked him to give them the bag of marijuana, and he complied. Franklin was asked to step out of the vehicle and he initially complied.

As the officer placed one handcuff on Franklin, he fled from the scene. The two officers were able to catch the defendant a short distance away, but he resisted arrest and tried to grab the service weapon out of the holster of one of the officers. Franklin then fought his way back to the Maxima and grabbed a Smith & Wesson .40 caliber pistol he kept on the driver's side floorboard. Officers gave commands to comply and the suspect was finally handcuffed and arrested.

The bag of marijuana weighed 16.3 grams. Officers also found a folded $1 bill containing a small amount of cocaine in the pants of one of the other occupants of the vehicle.

The defendant was a convicted felon at the time of these events. A special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) reviewed a description of the firearm seized in this case and determined that it was manufactured outside the State of Tennessee, and therefore at some point entered into interstate commerce.

U.S. Attorney D. Michael Dunavant said: "Convicted felons who possess firearms are an inherent danger to the community, and in this case, Franklin continued to possess a firearm and illegal narcotics despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more armed offender that will be removed from our streets. Gun Crime is Max Time."

Sentencing is set for September 19, 2019 before U.S. District Court Judge Thomas L. Parker, where the defendant faces a maximum sentence of 10 years in federal prison.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

This case was investigated by the Memphis Police Department and Project Safe Neighborhoods.

Assistant U.S. Attorneys J. William Crow and Wendy Cornejo are prosecuting this case on behalf of the government.

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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 William C. Read, 33, of Bath, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci to the online enticement of a minor. The charge carries a minimum penalty of 10 years in prison, a maximum of life, a lifetime period of supervised release, and a $250,000 fine. 
 
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that Read utilized a social media application in an attempt to meet a nine year-old child for sex.  The defendant was intercepted by members of the New York State Police and Department of Homeland Security on October 1, 2018 while on his way to meet the child. Upon his arrest, Read was found to be in possession of condoms and candy, which he intended to give to the child. The defendant also distributed and possessed images of child pornography from a cell phone in his possession.   

The plea is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.

Sentencing is scheduled for September 20, 2019, before Judge Geraci.  

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BOSTON – A Lynn man was sentenced today in federal court in Boston for multiple drug convictions associated with his distribution of heroin and fentanyl that led to the 2017 overdose death of a Melrose resident.

Yeffry Reynoso, a/k/a Chris, 27, was sentenced by U.S. District Judge Nathaniel M. Gorton to 150 months in prison and four years of supervised release. In January 2019, Reynoso pleaded guilty to one count of conspiring to distribute at least 100 grams of heroin and at least 40 grams of fentanyl in 2016 and 2017. Reynoso also pleaded guilty to six counts of distributing heroin or fentanyl on various dates in 2017.

According to court documents, Reynoso admitted that he sold and directed others to sell on his behalf small, retail quantities (typically approximately .25 to .30 grams in a plastic baggie) of heroin, heroin mixed with fentanyl, and/or fentanyl to individuals in Lynn, Melrose, Saugus, Peabody, Malden, and the surrounding areas. Reynoso admitted that he sold the drugs to his customers on an almost daily basis and that he directed others who worked for him to deliver the drugs. Reynoso further admitted that he sold heroin and heroin mixed with fentanyl to a customer in Melrose after being told by her friend not to do so and that his customer fatally overdosed from the drugs he provided.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Melrose Police Chief Michael Lyle made the announcement today. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit prosecuted the case. 

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

BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Joshua A. Schohn, 29, of Akron, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 20 years in prison.

Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, in March 2019, the FBI received a call from the mother of two girls (complainant) who stated that she recently discovered child pornography on a laptop computer belonging to her ex­boyfriend, the defendant. In addition, the complainant stated that Schohn took nude videos of her daughters, then eight and six years old (Victim 1 and Victim 2). The defendant was arrested by the New York State Police on charges of assault and possession of a sexual performance by a child.

During the course of the investigation, state and federal investigators determined that Schohn’s laptop contained thousands of images and videos of child pornography. Other videos found on the laptop were sexual in nature and were produced by Schohn during a visit to a water park in Erie, Pennsylvania, in the presence of Victims 1 and 2.

Investigators also learned from the complainant that she discovered YouTube searches relating to getting children ready for baths and nude religious rituals with children. The searches were done by the defendant.

The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is detained pending a preliminary hearing scheduled for July 3, 2019, at 2:00 p.m. 

The complaint is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Gary Loeffert, and the New York State Police, under the direction of Major Edward Kennedy. 

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.

# # # #

BOSTON - A Holyoke man was sentenced today in federal court in Boston for threatening to murder a federal prosecutor. 

Carlos Maldonado, 30, was sentenced by U.S. District Court Judge Denise J. Casper to 50 months in prison, 30 months to be served concurrent to a federal sentence he is currently serving, and 20 months to be served consecutively, and three years of supervised release. The government recommended a sentence of 84 months to be served consecutively. 

U.S. Attorney Andrew E. Lelling said, “Anyone who threatens a federal prosecutor will be aggressively prosecuted. Threats against prosecutors - like threats against judges, defense attorneys, or other actors in the court system - are an attack on the criminal justice system itself, and so we will never let them stand.”

“Threatening anyone in the law enforcement family, whether it be a police officer, Special Agent, analyst or prosecutor, is not only an attack on an individual but the entire criminal justice system,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office. “The FBI takes all threats against law enforcement extremely seriously and we will work with our partners to bring those who set out to undermine their safety to justice.”

“The United States Marshals Service will not tolerate anyone who threatens any of our protectees to include members of the United States Attorney’s Office,” said United States Marshal John Gibbons of the District of Massachusetts. “Our office is committed to the integrity and preservation of the judicial process and we will continue to vigorously investigate such threats.”   

In May 2019, Maldonado pleaded guilty to threatening to murder an Assistant U.S. Attorney in retaliation for the federal prosecutor’s performance of his official duties. Maldonado was charged on April 26, 2019.  Maldonado admitted that, in March 2018, he had written and sent a letter from a federal detention facility, where he was awaiting trial on federal charges for cocaine distribution, to the federal prosecutor responsible for prosecuting the charges against him. In that letter, Maldonado threatened to murder the Assistant U.S. Attorney, as well as the prosecutor’s family. 

Maldonado is presently serving a 42-month federal sentence, a compilation of a 30-month sentence for cocaine distribution in 2016, and a consecutive 12-month sentence for his violation of supervised release conditions related to a prior conviction for distributing heroin in 2014. 

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office prosecuted the case.

SACRAMENTO, Calif. — John Michael Herron II, 38, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to six years and three months in prison for conspiracy to commit mail fraud and identity theft, U.S. Attorney McGregor W. Scott announced.

According to court documents, from at least December 2014 through January 2018, Herron participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Herron and his co-defendant, Robert Maher, formerly of Stockton, created fictitious companies and fictitious employees (by using the real identities of persons with and without their knowledge), and filed claims with EDD, falsely stating that the employees had been laid off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Herron, Maher, or their associates. ATM cameras captured Herron withdrawing unemployment benefit funds using a debit card registered to an identity theft victim. Herron was connected to approximately $578,185 in fraudulent claims to EDD, of which approximately $485,685 was paid out by EDD.

“John Michael Herron II conspired with his co-defendant to defraud EDD by filing for unemployment insurance benefits in the names of identity theft victims who were not entitled to such benefits. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs,” said Abel Salinas, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.

“Today’s sentencing sends a clear message that fraud will not be tolerated,” said EDD Director Patrick W. Henning. “EDD proudly works alongside our law enforcement partners to safeguard these vital public benefits and pursue aggressive action against fraud whenever possible.”

This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.

The charges against Maher are pending. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A criminal complaint was unsealed today against four individuals, including the president of the Modesto Hells Angels Motorcycle Club, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.

Charged in the criminal complaint are Modesto residents Randy Picchi, 61, president of the club; his wife Tina Picchi, 51; Michael Mize, 61; and Michael Pack, 32, a prospect with the club. Randy Picchi, Tina Picci, and Mize were arrested today and are in custody. They will appear in federal court on Wednesday in Fresno.

According to court documents, Randy Picchi led a drug conspiracy and directed Tina Picchi to regularly deliver drugs to Mize and other individuals in Ceres. Randy Picchi also enlisted Pack to help obtain methamphetamine on at least one occasion. Pack was stopped by law enforcement and found to have 499 grams of methamphetamine in his possession.

On another occasion, Randy Picchi directed Tina Picchi to drive from Modesto to Redding to deliver methamphetamine to a customer. On the way, Tina Picchi was stopped by law enforcement and found with approximately 4 ounces of methamphetamine, which she had wrapped in a plastic glove and hidden in a cup of soda.

As part of the investigation, officers executed search warrants on Tuesday in seven locations in Stanislaus County, including the clubhouse of the Hells Angels Motorcycle Club in Modesto.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS Criminal Investigation, the Central Valley Gang Impact Task Force, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.

If convicted, each defendant faces a maximum statutory penalty of life in prison, a mandatory minimum 10 years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

DENVER – John Van Wu, age 49, of Golden, pleaded guilty today to one count of distributing oxycodone outside the usual course of medical practice and for no legitimate purpose, announced U.S. Attorney Jason Dunn and DEA Denver Division Special Agent in Charge William McDermott.  The plea was accepted by U.S. District Court Judge R. Brooke Jackson.  Sentencing is scheduled for September 24, 2019 at 8:30 a.m.  The defendant was remanded into custody at the end of the plea hearing. 

The judge bifurcated the case for trial, and John Van Wu was previously convicted by a jury of mail fraud and obstruction of justice following a one-week trial in April 2018.  The illegal prescriptions were the second part of the case.  Pursuant to the plea agreement filed in court today, Wu pleaded guilty to the additional charge of distributing oxycodone.  According to the facts contained in that plea agreement, Wu illegally prescribed oxycodone to a patient based upon false documentation that a fall down some stairs caused lower back pain so bad that the patient could “barely stand” and was “moving around in his wheelchair.”  However, the patient had never used or been confined to a wheelchair and had never used oxycodone.  All the prescriptions to that patent (a total 462 oxycodone 30 mg pills) were illegitimate and outside the usual course of medical practice. 

The plea agreement contains two provisions designed to ensure that the defendant never again uses his medical training to defraud insurers or put people in harm’s way through the illegitimate distribution of controlled substances.  First, the defendant agreed to never again apply for a medical license in any jurisdiction.  Second, the defendant agreed to forfeit his medical degree.  This latter provision, a first-of-its-kind in a plea agreement, will prevent the defendant from obtaining another medical license even if he violated the first provision.

The case was jointly investigated by the Drug Enforcement Administration and the U.S. Department of Labor Employee Benefits Security Administration.  The defendant is being prosecuted by Assistant United States Attorneys Bryan D. Fields and Conor Flanigan. 

NEWS RELEASE SUMMARY– June 25, 2019

SAN DIEGO – Maxwell Joseph Gaffney, aged 25, of Ramona, California, was convicted by a federal jury late yesterday of distributing the heroin that resulted in the death of Kyle J. Rodriguez, who was 23 years old when he overdosed.   The verdict, delivered after two hours of jury deliberations, followed a week-long trial before U.S. District Judge Michael M. Anello.  

            Evidence at trial revealed that on February 17, 2017, after months of sobriety confirmed by regular random drug screenings,  Rodriguez was found by his girlfriend collapsed in the bathroom of his parents’ Ramona home, surrounded by burned aluminum foil, a plastic straw and lighter.  These were familiar signs of Rodriguez’s former life wrestling with substance use disorder.  But in February 2017, Rodriguez had made positive inroads: he had a full-time job in construction, a girlfriend he was considering marrying, and a rekindled relationship with his father that was formerly splintered by his prior heroin use. When he was found, Rodriguez’s mother, a former cardiac nurse, immediately performed CPR to resuscitate her son.  Her efforts and the subsequent efforts of paramedics failed.  At 3:03 a.m. that morning, Kyle Rodriguez was gone.

            Authorities charged Gaffney after an investigation revealed text messages that established the following: Gaffney had supplied heroin to Rodriguez hours before his collapse; Gaffney had directed Rodriguez to put the money for the heroin into Gaffney’s mailbox; and Rodriguez’s blood contained heroin metabolites at the time of his death.  At trial, the defense contended that Rodriguez had another source of heroin supply and that the heroin in Rodriguez’s blood was not the heroin supplied by Gaffney.  Further, the defense contended that Rodriguez’s alcohol consumption prior to and during the concert he attended the evening of his death, which resulted in a blood alcohol level of .12, and a combination of other factors, including but not limited to heroin, caused his death. 

            Both the San Diego Deputy Medical Examiner, Dr. Abubakr Marzouk, and a Board Certified Medical Toxicologist/Emergency Medicine doctor testified for the United States that the actual cause of Rodriguez’s death was the heroin and that, but for his use of heroin, Rodriguez would not have died.  In explaining the difference between the impact of the heroin and the alcohol consumed by Rodriguez, the United States’s expert likened the heroin to a “shotgun blast to the heart” and the alcohol to a “pin-prick.”  As to the source of the heroin, the email exchange between Gaffney and Rodriguez showed that Gaffney supplied Rodriguez with approximately a half of a gram plus “a little extra B” -- black tar heroin.  Neither a search of Rodriguez’s cellular telephone nor other evidence introduced at trial revealed any another consummated heroin transaction by Rodriguez with any other supplier near the time of Rodriguez’s death.   

            “The U.S. Attorney’s Office will zealously work to hold dealers accountable for overdose deaths that result from their actions,” said U.S. Attorney Robert S. Brewer, Jr. “These purveyors of poisons are killing our citizens and tearing apart the fabric of our families.  We must continue to combat the opioid crisis by every possible means at our disposal.”   

“The results in this case are a testament to the collaborative efforts of the San Diego County Sheriff's Department and the U.S. Attorney’s Office,” said Lt. Ken Jones of the Sheriff's Ramona Substation.  “This is a significant victory as we partner to fight the opioid crisis in our community."

            Gaffney is set to be sentenced on September 23, 2019 before Judge Anello.  This case was handled in court by Assistant United States Attorneys Timothy Coughlin and Larry Casper.

DEFENDANT                                    Case Number 17-cr-3330-MMA                                                    

Maxwell Joseph Gaffney                    Age: 25                       Ramona, California

SUMMARY OF CHARGE TO WHICH GUILTY PLEA ENTERED

Distribution of Heroin Resulting in Death – Title 21 U.S.C. Section 841(b)(1)(C)

Maximum Penalty – Mandatory Minimum of 20 years and a maximum of life

INVESTIGATING AGENCIES

San Diego Sheriff’s Department

San Diego Sheriff’s Department Regional Crime Lab

San Diego Medical Examiner’s Office

San Diego District Attorney’s Office

United States Attorney’s Office

NEWS RELEASE SUMMARY– June 25, 2019

The U.S. Attorney’s Office for the Southern District of California and the U.S. Department of Justice (DOJ) Civil Rights Division hosted a roundtable today for community organizations, U.S. Attorney Robert S. Brewer, Jr. announced.  The event included local law enforcement agencies, legal aid offices, fair housing organizations, and community groups that work with individuals who use transitional housing. Each organization invited has regular contact with Southern California’s most vulnerable populations, who could also become victims of sexual harassment in housing.

“Sexual harassment in housing can be even more egregious than harassment in the workplace,” U.S. Attorney Brewer said. “Landlords and property managers cannot be permitted to use their power over housing as a weapon to extort sexual favors from tenants. We’re extremely proud to be holding a meaningful discussion with community partners about how to combat this serious problem.”

While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in the housing context, and the Fair Housing Act prohibits it. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations - single mothers, women who are financially unstable, and women who have suffered sexual violence in their past. And these women often do not know where to turn for help.

The U.S. Attorney’s Office is working closely with the DOJ Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Often it is community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers, that are in the best position to identify housing abuses and recommend that victims report sexual harassment to DOJ’s Civil Rights Division. By increasing awareness and building strong partnerships, we can better combat this problem in our community.

Each year DOJ brings cases involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.  The case filed against San Diego landlord Larry Nelson earlier this month is illustrative. The lawsuit, filed in the U.S. District Court for the Southern District of California, alleges that Nelson engaged in sexual harassment and retaliation of female tenants from at least 2005 to the present, by, among other things, engaging in unwelcome sexual touching, offering to reduce monthly rental payments in exchange for sex, making unwelcome sexual comments and advances, making intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicting or threatening to evict female tenants who objected or refused his sexual advances.

The roundtable is an integral part of a DOJ initiative that seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts - both among victims and those they may report to - and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: fairhousing@usdoj.gov.

Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

BAKERSFIELD, Calif. — Leonard Velazquez-Martinez, 50, of Minnesota, and Joseph Andrade, 38, of Bakersfield, were arrested Monday for conspiring to possess with intent to distribute cocaine and methamphetamine, U.S. Attorney McGregor W. Scott announced.

At the time of his arrest, Andrade was employed as a Correctional Officer at Wasco State Prison in Wasco, California.

According to court documents, in June 2019, in Kern County, the defendants conspired to purchase approximately 40 pounds of methamphetamine and two kilograms of cocaine from an individual who defendants believed was a narcotics supplier, but who was actually an undercover law enforcement officer. On June 24, 2019, the defendants arrived at a location in Kern County to purchase the methamphetamine and cocaine from the undercover officer. Andrade was driving a vehicle registered to him, and Velazquez occupied the front passenger seat. Velazquez directed the undercover officer’s attention to a grocery bag containing money, which was on the passenger-side floorboard of the vehicle. The defendants were arrested shortly thereafter.

This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorney Angela Scott is prosecuting the case.

If convicted, defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

In San Antonio today, a federal judge sentenced 55-year-old Ryan Glenn Martinez to 76 months in federal prison for embezzling over $800,000 from his employer and his failure to pay the IRS over $300,000, announced U.S. Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.

In addition to the prison term, Senior U.S. District Judge Fred Biery ordered that Martinez pay $813,822.91 in restitution to his fraud victims as well as $305,247 in restitution to the IRS for the tax offense.

On October 3, 2018, Martinez pleaded guilty to one count of wire fraud and one count of making and filing a false income tax return.  According to court documents, from January 2012 until May 2014, the defendant was the Controller of San Antonio company called Southern Folger Detention Equipment Company, LLC (a subsidiary of Phelps Tointon, Inc.) that manufactured and marketed detention equipment and electronics for correctional facilities.  By pleading guilty, Martinez admitted that he embezzled funds from Southern Folger by stealing checks issued in payment of Southern Folger accounts; stealing checks and money orders from customer payments of Southern Folger products; stealing checks issued by health care insurers to Southern Folger; and, submitting fraudulent vendor invoices to Southern Folger for payment on scrap material purchases, then pocketing the Southern-Folger-paid-money.  Martinez further admitted to making false and fraudulent entries in the books of Southern Folger and Phelps Tointon to cover up his scheme.  Following his guilty plea, Martinez was remanded to the custody of the U.S. Marshals Service.  He has since remained in federal custody.

Martinez also admitted that he underreported to the IRS his income and income tax due for calendar years 2010, 2011, 2012, 2013, and 2014.

IRS-Criminal Investigation special agents investigated this case.  Assistant U.S. Attorney William F. Lewis, Jr., prosecuted this case on behalf of the Government.

SAN FRANCISCO – Taj Armon Reid was sentenced to 12 months in prison for conspiracy and receiving bribes, announced United States Attorney David L. Anderson; Federal Bureau of Investigation Special Agent in Charge John F. Bennett; and Department of Energy Office of the Inspector General, Inspector General Teri L. Donaldson.  The sentence was handed down today by the Honorable Charles R. Breyer, U.S. District Court Judge.

After a four-day jury trial, a federal jury found Reid, 48, of Oakland, guilty of the crimes on May 24, 2018.  Reid was a construction consultant and business partner with Eric Worthen, 46, of Pleasant Hill, who, at the time, was also an employee of the California Department of Veterans Affairs (CalVet).  The evidence at trial demonstrated Reid received bribes on two occasions in connection with business being offered by CalVet.  The jury also concluded Reid conspired with Worthen to receive the bribes. 

The evidence at trial showed that Reid accepted cash from a source on April 18, and again on May 8.  In April, Reid offered a developer an inside advantage on two CalVet construction projects in exchange for $10,000 cash.  Specifically, Reid offered to use Worthen’s position at CalVet to circumvent the normal bidding process for a residential home project in Ventura, Calif.  The May transaction involved a kitchen remodel project at the veterans’ home in West Los Angeles.  On this occasion, Reid and Worthen accepted $2,000 cash in exchange for providing to the developer inside information that the co-conspirator took from the CalVet office.  Unbeknownst to Reid and Worthen, the “developer” to whom they were providing an inside track on the CalVet contracts was a source working under the direction of the FBI and posing as a developer willing to pay bribes in order to obtain contracts with public agencies.  At the conclusion of the trial, the jury found Reid guilty of conspiracy to defraud the Department of Energy, in violation of 18 U.S.C. § 371, and two counts of receiving a bribe or reward, in violation of 18 U.S.C. § 666(a)(1)(B).  

In addition to the prison term, Judge Breyer ordered Reid to serve 3 years of supervised release.  

Worthen pleaded guilty in August of 2017 to his part in the conspiracy and for taking bribes.  Judge Breyer scheduled his sentencing for November 6, 2019.  

The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office and the FBI, with assistance from the Department of Energy, Office of Inspector General.
 

OAKLAND - Job Torres Hernandez was sentenced to 103 months in prison and was also ordered to pay $919,738.64 of unpaid wages in restitution, after being convicted earlier this year on charges that he obtained forced labor from victims and harbored illegal aliens for commercial advantage or private financial gain, announced United States Attorney David L. Anderson and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.  The sentence was handed down today by the Honorable Jeffrey S. White, U.S. District Judge.

Torres, 38, of Hayward, Calif., was convicted of the charges on March 18, 2019, after a 10-day jury trial. The evidence at trial demonstrated that since at least May 2015, Torres owned construction companies in Northern California at which he employed workers to whom he paid little to nothing for their labor.  Torres recruited workers from Mexico to work for his construction companies and then refused to pay them the wages they had earned.  Further, Torres knew the workers had come to, entered, and remained in the United States in violation of law; he kept the workers in squalid conditions and shielded them from detection while making them work as long as 24 consecutive hours at a time.  Many victims testified at trial, with the assistance of an interpreter, about how Torres treated them.  Witnesses testified that Torres paid them far less than what he had promised to pay them, and when they complained, Torres threatened them or their family members.  Specifically, the evidence demonstrated Torres warned his victims that if they reported him, then he would harm them physically, have associates in Mexico harm their family, or have them deported.  The evidence also demonstrated that Torres told his victims that if they went to police or filed suit against him, no one would believe them.  In addition, Torres housed dozens of workers on makeshift beds in a commercial warehouse in Hayward and other properties including a garage in Hayward.  The workers had limited access to toilets and showers, and at times, the properties were locked, preventing the workers from leaving.  The evidence demonstrated Torres harbored these individuals for the purpose of obtaining an advantage in the construction industry and for his private financial gain.  

On December 6, 2018, a federal grand jury handed down a superseding indictment, charging Torres with one count of harboring illegal aliens for commercial advantage or private financial gain, in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iii) and (B)(i), and one count of forced labor, in violation of 18 U.S.C. § 1589(a).  The jury convicted Torres of both counts.

Torres was remanded into custody on the day the jury rendered its verdict, and he remains in custody pending assignment to a Bureau of Prisons facility. He was also sentenced to a three year term of supervised release to begin at the conclusion of his prison term.

Assistant U.S. Attorneys Ravi T. Narayan and Jonathan U. Lee are prosecuting the case with the assistance of Vanessa Quant, Jessica Rodriguez Gonzalez, and Kimberly Richardson.  The prosecution is the result of an investigation by the Department of Homeland Security’s Human Trafficking Unit; Department of Labor’s Wage and Hour Division; and the San Francisco Police Department’s Special Victims Unit.  
 

SAN FRANCISCO – A federal arrest warrant was issued for the arrest of Lixiong Chen, also known as John Chen, a defendant in an eighteen-count superseding indictment who failed to appear at what was supposed to be the first day of a jury trial, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge (San Francisco and Northern California) Ryan L. Spradlin.  The warrant was signed by the Honorable James Donato, U.S. District Judge. 

On April 25, 2019, a federal grand jury returned a superseding indictment charging Chen, 45, a citizen of China, with conspiracy, trafficking in counterfeit goods, and smuggling goods into the United States.  According to court documents, the government intended to prove that over the course of at least six years, the defendant illegally imported and sold small electronics, such as power adapters, that bore counterfeit trademarks.  The criminal trial in Chen’s case was scheduled to begin yesterday morning.  Nevertheless, on Sunday, June 23, 2019, Chen’s counsel filed a document with the Court stating, “defense counsel has just learned that Defendant Lixiong Chen will not be present for Court tomorrow morning, June 24, 2019, at 9 am.”  

At a hearing held in lieu of jury selection, Chen’s lawyers confirmed they did not anticipate the defendant would be present for trial at any point.  Further, attorneys for the United States informed the Court that they had received information indicating someone with Chen’s name boarded a flight to Beijing, China, that landed Sunday, June 23, 2019.  At the close of the hearing, Judge Donato issued a bench warrant for the defendant’s arrest.

Documents submitted to the court in anticipation of the trial describe the case against Chen.  While residing in China, Chen operated businesses, known as CBK Auto, CBK Holdings, CBK Wholesale, CBK USA, bestcompu.com, and Silicon Electronics, among other names, through employees in the United States.  Chen’s various businesses sold millions of dollars in electronic goods each year through online platforms such as Amazon and eBay.  The government alleges that a significant percentage of Chen’s business involved the sale of counterfeit goods. Further, the government alleges that Customs and Border Protection (CBP) agents repeatedly seized goods that violated U.S. law and could not legally be brought into the United States, but the defendant nevertheless continued to import counterfeit merchandise from China.  In sum, the superseding indictment charges Chen with nine counts of smuggling goods into the United States, in violation of 18 U.S.C. §  545; eight counts of trafficking counterfeit goods, in violation of 18 U.S.C. § 2320(a), and one count of conspiracy, in violation of 18 U.S.C. § 371. 

If convicted, the defendant faces the following maximum penalties:

• 18 U.S.C. § 371: 5 years of imprisonment, $250,000 fine, 3 years of supervised release, $100 special assessment, restitution.
• 18 U.S.C. § 545: 20 years of imprisonment, $250,000 fine, 3 years of supervised release, $100 special assessment, forfeiture, and restitution.
• 18 U.S.C. § 2320: 10 years of imprisonment, $2,000,000 fine, 3 years of supervised release, $100 special assessment, forfeiture, and restitution.

However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Following his arrest in January 2019, Chen was released by United States Magistrate Judge Kandis Westmore on a $1,000,000 bond secured by real property. He was also ordered not to travel outside of the Northern District of California, not to change residence without prior approval of Pretrial Services, and not to apply for any passports or other travel documents.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Anyone with information regarding the defendant’s whereabouts should contact Homeland Security Investigations at 1-866-347-2423. Callers outside the United States should call 802-872-6199.

Assistant United States Attorneys Michelle Kane and Matthew Parrella are prosecuting this case with assistance from Rebecca Shelton, Elise Etter, and Sarah Lamparelli.  The prosecution is the result of an investigation by HSI.
 

ALBANY, NEW YORK – Jose Cortes-Cruz, aka “Bimbo,” age 28, of Schenectady, New York, pled guilty today to conspiring to possess with intent to distribute and to distribute heroin.

The announcement was made by 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 Superintendent Keith M. Corlett. 

In pleading guilty, Cortes-Cruz admitted to being a member of a drug trafficking organization that distributed heroin in Schenectady between 2017 and December 20, 2018.  As a member of the organization, the defendant picked up heroin and delivered thousands of dollars in cash as payment.  The heroin was then sold in and around Schenectady. 

Cotes-Cruz faces up to 20 years in prison, a term of supervised release of at least 3 years and up to life, and a maximum fine of $1 million.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Cortez-Cruz was charged with eight other defendants in an indictment alleging a conspiracy to distribute heroin in Schenectady.  Four of Cortes-Cruz’s co-defendants, Leamzy Soto Calderon, aka “Lee,” aka “Gordo,” Linette Marie Soto, Kristen Jansen, and Gregory Insogna, have pled guilty.  Co-defendants Jean Carlos Rivera-Perez, aka, “Tego,” Esteban Ressy, aka “The Boss,” and Patrick McNamara are pending trial.  The final defendant, Daniel Garcia, aka “Danny,” is at large.  The charges in the indictment are merely accusations.  Rivera-Perez, Ressy, Garcia and McNamara, are presumed innocent unless and until proven guilty.

This case is being investigated by HSI, the New York State Police, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck. 

ALBANY, NEW YORK – James Haskins, age 43, of Schenectady, New York, was sentenced on Friday, June 21 to 15 years in prison for possessing and intending to distribute crack cocaine, and for possessing a firearm in furtherance of a drug trafficking crime.

The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge John B. DeVito of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.

In pleading guilty, Haskins admitted that on April 11, 2018, he possessed 152 grams of crack cocaine and a .380 caliber pistol and ammunition in Schenectady.  He further admitted that he intended to distribute the crack cocaine to others in exchange for cash, and he possessed the firearm to protect his crack and drug proceeds from potential robbers.

Senior United States District Judge Norman A. Mordue sentenced Haskins to 10 years in prison on the drug charge and 5 years in prison on the firearm charge, to be run consecutively.  He also sentenced Haskins to 5 years of supervised release to begin following his term of imprisonment.

This case was investigated by the ATF and Schenectady County Sherriff’s Office, and was prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.