INDIANAPOLIS –United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced to 10 years and 1 day in federal prison for robbing a cell phone store in Indianapolis, Indiana. The sentence was handed down on July 11, 2019, after Andre Hamilton, 24, was found guilty of one count of Interference with Commerce by Means of Robbery and one count of discharging a Firearm during a Crime of Violence. The case was heard by U.S. District Judge Sarah Evans Barker.

“Cell phone store robberies have declined since federal and local law enforcement involvement,” said Minkler. “It is imperative that individuals contemplating such heinous crimes know that these acts will not be tolerated and that they will be held accountable for their actions.”

The 10-year sentence in this case followed an investigation by the Indianapolis Metropolitan Police Department and the Federal Bureau of Investigation. That investigation revealed that on February 9, 2018, Hamilton entered a Boost Mobile cell phone store located on North Michigan Road in Indianapolis, Indiana. He wore a mask over the lower portion of his face and was armed with a revolver. Hamilton demanded cash from the store’s register. When the victim-clerk hesitated, Hamilton fired his revolver into the ceiling of the store before fleeing in a vehicle. Thanks to the quick response of the Indianapolis Metropolitan Police Department and assisting officers with the Indiana State Police, Hamilton was apprehended shortly thereafter in the getaway car.

“Robberies – particularly those, like this one, in which the perpetrator discharges a firearm – inject fear into our community,” Minkler stated. “Law enforcement must continue to aggressively investigate such cases in order to protect the public. The safety of shoppers, employees, and all citizens is of paramount importance.”

“Violent crime remains a significant priority for the FBI and we are committed to identifying and pursuing individuals who utilize firearms for criminal purposes and put residents in danger,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This sentence highlights the partnerships the FBI has and the dedication of everyone involved in this investigation to ensure this individual is no longer a threat to our community.”

“We’ve made tremendous strides in the number of cell phone robberies as indicative in today’s announcement,” said Chief Bryan Roach. “IMPD will continue to leverage federal partnerships and the cell phone co-op to identify ways in increasing safety.” 

This case was prosecuted by Assistant United States Attorneys Pamela Domash and Kendra Klump.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3

PITTSBURGH, PA. - After deliberating less than three hours, a federal jury of nine men and three women found Gary E. Mills guilty of three counts of filing false tax returns following a three-week trial, United States Attorney Scott W. Brady announced today.

Mills, of Dubois, PA, was tried before Senior United States District Judge Nora Barry Fischer in Pittsburgh, Pennsylvania.

"People who lie about their income on their taxes steal from the citizens of western Pennsylvania who work hard and play by the rules," said U.S. Attorney Brady. "My office is strongly committed to promoting compliance with federal tax laws, and will draw on all available law enforcement tools to identify, prosecute and punish tax cheats."

"This guilty verdict confirms that all income is taxable, no matter what the source of the income is" said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation. "The verdict should also be a message to others who may be considering not reporting all of their income and paying their fair share of taxes that they too could face criminal prosecution by doing so. The Special Agents of IRS-CI will continue to investigate and recommend prosecution against those who cheat the tax system and victimize the honest taxpayers."

The evidence presented at trial established that on April 15, 2015, April 15, 2014, and August 1, 2014, Mills filed false joint tax returns by intentionally under-reporting his and his wife’s income to the IRS. During the trial, evidence was presented that the Defendant’s wife embezzled $12.9 million from Matthews International from 1999 to 2015. The Defendant’s wife embezzled more than $4 million during the 2012-2014 tax years. The Defendant allegedly believed the monies came from gambling. However, in April 2012, the Defendant received a Notice of Deficiency from an IRS civil audit focused on the 2003-2007 tax years. The Notice of Deficiency informed the Defendant and his wife that he owed more than $930,000 in back taxes, penalties, and interest for the years in question. While litigating and settling this civil audit, the Defendant offset gambling winnings with gambling losses resulting in approximately $100,000 in taxable income for each of 2012, 2013, and 2014 tax years, which resulted in approximately $15,000 in taxes per year. During these years, the Defendant spent approximately $2.7 million dollars, which included a $600,000 yacht, another large recreational boat, various luxury and recreational vehicles, and lavish vacations.

Judge Fischer scheduled sentencing for December 12, 2019 at 9:00 a.m. The law provides for a total sentence of nine years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Shardul Desai prosecuted this case for the government.

Pending sentencing, the court continued Mills on bond.

The Internal Revenue Service and the U.S. Postal Inspection Service conducted the investigation that led to the prosecution of Mills.

The United States today extradited Andres Felipe Arias Leiva, who served as Colombia’s Minister of Agriculture and Rural Development from 2005 to 2009, to face a prison sentence in that country based on a 2014 conviction by the Supreme Court of Colombia for two offenses committed while Arias served in public office.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Assistant Attorney General Brian A. Benczkowski of the U.S. Department of Justice’s Criminal Division made the announcement.

“Assistant U.S. Attorneys for the Southern District of Florida, alongside attorneys for the Department’s Office of International Affairs, have worked hard to ensure that former Colombian government official Andres Arias would be extradited back to his home country to serve a sentence imposed by that nation’s highest court,” said U.S. Attorney Fajardo Orshan.  “We are grateful to the dedication of Assistant U.S. Attorney Robert J. Emery and Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs of the U.S. Department of Justice for their work in making this possible. Our Office is committed to upholding the rule of law and ensuring that justice is appropriately carried out for all parties.”

“Andres Arias’s extradition is a testament to the United States’ commitment to our extradition treaty obligations and the strength of our law enforcement partnership with Colombia,” said Assistant Attorney General Benczkowski.  “I thank the team from the Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Florida for their tireless, years-long efforts to ensure that Arias serves his prison sentence in Colombia.”

Arias, a citizen of Colombia who entered the United States in 2014 and was residing in Weston, Florida, was convicted on July 16, 2014, by the Criminal Cassation Division of the Supreme Court of Colombia on two offenses, Embezzlement for Third Parties, in violation of Article 397 of the Colombian Criminal Code, and Conclusion of Contract Without Fulfilling Legal Requirements, in violation of Article 410 of the same code.  Arias was present and represented by counsel at his trial in Colombia, and following his conviction, the Colombian court sentenced him to serve 209 months in prison.  As detailed in the 193-page decision issued by the Supreme Court of Colombia, Arias’s criminal conduct related to the diversion of funds within the Colombian government’s Argo Ingreso Seguro program, which he was responsible for implementing during his term as Minister of Agriculture and Rural Development, a cabinet-level position in Colombia’s executive branch, from 2005 to 2009.  

The United States acted on a request for Arias’s extradition submitted by the Republic of Colombia, which Arias vigorously contested in both the Southern District of Florida and the U.S. Court of Appeals for the Eleventh Circuit.  On Sept. 28, 2017, a U.S. magistrate judge in the Southern District of Florida ruled that Arias could be extradited to Colombia to serve the sentence based on his conviction.  Arias then filed a petition for a writ of habeas corpus, which the district court for the Southern District of Florida denied on Oct. 5, 2018.  Arias appealed that decision to the Eleventh Circuit.  Following extensive briefing and argument, the litigation culminated on July 8, 2019, when the court of appeals rejected Arias’s arguments against extradition.  Consistent with the views of the U.S. Department of State and 40 years of extradition practice between the United States and Colombia, the court of appeals affirmed that the extradition treaty between the two countries remains in full force and effect.

Following a thorough review of Arias’s case, the Department of State issued a warrant ordering Arias’s surrender to Colombian authorities.  Today, the U.S. Marshals Service executed that warrant, transported Arias to Colombia, and delivered him to the custody of Colombian authorities.  Arias’s extradition is now complete.

The extradition proceedings and subsequent appellate litigation were handled by Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs, and Assistant U.S. Attorneys Robert J. Emery and Emily M. Smachetti of the Southern District of Florida with the support of myriad attorneys and international affairs specialists in the Office of International Affairs of the Department’s Criminal Division.

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.

A former employee of the United States Army Corps of Engineers pled guilty to making false statements to law enforcement agents.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Colonel Andrew D. Kelly, Jr., Jacksonville District Commander, U.S. Army Corps of Engineers, Cyndy A. Bruce, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Manny Antonaras, Deputy Special Agent in Charge, National Oceanographic and Atmospheric Administration (NOAA), Southeast Office of Enforcement, Andres Castro, Special Agent in Charge, Environmental Protection Agency Criminal Investigations Division (EPA- CID), Atlanta Area Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command Major Procurement Fraud Unit (MPFU), made the announcement. 

            Tracey Jordan Sellers, 49, of Duval County, pled guilty to an Information containing one count of making a false official statement to federal law enforcement agents, in violation of 18 U.S.C. § 1001(a)(2).  Sellers faces a maximum statutory penalty of five years and is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on September 19, 2019, in Miami.

“Tracey Jordan Sellers’s conduct undermined the integrity of the U.S. Army Corps of Engineers,” said U.S. Attorney Fajardo Orshan.  “Together with our partner law enforcement agencies, we remain committed to defending the institutions of federal government.”

“We take this matter very seriously,” said Col. Andrew D. Kelly.  “We have assisted the U.S. Attorney’s Office and federal investigators throughout their investigation.  The defendant is no longer employed with the Corps.  Her actions are not representative of the Corps and its values.  Such conduct is never tolerated.”

            According to the criminal Information and Joint Factual Statement filed with the Court, Sellers was a civilian employee of the U.S. Army Corps of Engineers’ Jacksonville District.  A biologist, Sellers coordinated and advised on environmental issues related to Army Corps projects.  Part of her responsibilities included planning and coordinating environmental requirements related to Army Corps projects and reviewing products from environmental consulting companies.   

Federal ethics laws and regulations prohibit federal employees from engaging in outside employment that conflicts with employees’ official duties.  From 2014 through February 8, 2019, while employed with the Army Corps, Sellers violated these laws and regulations by engaging in outside employment with a consulting company despite being part of a team that oversaw that company’s work for the Army Corps in relation to large dredging projects in South Florida.   

In secret from her colleagues and management at the Army Corps, Sellers accepted offers of part-time employment from the consulting company.  In November 2014, in October 2018, and in January 2019, the consulting company offered Sellers part-time work on three different projects with the company.  Sellers accepted the offers from the consulting company, provided them her resume, entered into an independent consulting contract with them, and performed work on the projects for them.  In an interview occurring in February 2019, Sellers falsely and willfully misled federal agents about her outside involvement with the consulting company.  One of those false statements comprises the offense in the criminal Information. 

Sellers no longer works for the Army Corps.

“Sellers ignored her oath and instead pursued personal profit from the same contractor whose work she reviewed,” said Cyndy Bruce Special Agent in Charge of the Defense Criminal Investigative Service, Southeast Field Office.  “DCIS and its law enforcement partners are committed to strike against those who undermine and jeopardize the integrity of the DoD’s procurement process.”

“Ms. Sellers not only violated federal ethics laws but also the trust and confidence the U.S. Army places in our soldiers, civilian employees and contractors,” said Frank Robey, the director of the Major Procurement Fraud Unit for the U.S. Army Criminal Investigation Command.  “The work that our Army does on a daily basis is vital to the success and security of our nation.  Anyone who violates that trust by committing criminal acts will be fully investigated by our agents and our fellow law enforcement professionals.”

“Federal employees who oversee the environmental compliance of government contractors must be free of any conflicts of interest,” said Andres Castro, Special Agent in Charge of EPA’s criminal enforcement program in Florida. “This case shows that EPA and our federal partners are committed to protecting the integrity of federal contracts and safeguarding our nation’s natural resources.”

            U.S. Attorney Fajardo Orshan commended the investigative efforts of the DCIS, NOAA, EPA-CID, and the MPFU.  U.S. Attorney Fajardo Orshan also thanked the U.S. Army Corps of Engineers for its assistance.  This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.

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.

Tentlogix, Inc., a Florida corporation headquartered in Fort Piece, Florida and three of its corporate officers, Gary Hendry, Dennis Birdsall and Kent Hughes of Martin County, have been charged by indictment with conspiring to conceal and harbor aliens for the purpose of commercial advantage.  Hendry and Birdsall are also charged with making false statements to a federal agency. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge for U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.

According to the indictment, beginning as early as January 2016, and continuing through March 2018, TentLogix, Hendry, and Birdsall recruited and employed aliens to work for TentLogix knowing and in reckless disregard of the fact that many of the aliens had entered and remained in the United States unlawfully, and were not authorized to work in the United States (Case No. 19-14035-CR-ROSENBERG/MAYNARD).  During the course of the conspiracy, a large portion of TentLogix’s workforce in the Southern District of Florida was comprised of aliens who were not authorized to work in the United States.  While TentLogix was being investigated by HSI, Hendry, Birdsall, and Hughes devised a scheme to “transfer” the aliens employed by TentLogix to KH Services, LLC, a company owned by Hughes, so that they no longer appeared on TentLogix’s payroll.  Hughes formed KH Services, LLC for the sole purpose of concealing, harboring, and shielding the aliens employed by TentLogix from HSI’s investigation.  Birdsall directed wire transfers to be sent from TentLogix’s bank account to KH Services, LLC’s bank account on a bi-weekly basis to cover the payroll expenses for the aliens who worked for TentLogix but were purportedly employed by KH Services, LLC.  Between May 2017 and March 2018, TentLogix transferred over $3,000,000 to KH Services, LLC in 23 separate wire transfers for the express purpose of paying aliens employed by TentLogix who were not authorized to work in the United States.

The indictment further alleges that in 2016, TentLogix generated more than $21,000,000 in gross receipts and $10,000,000 in gross profit from its business operations.  In 2017, Tentlogix allegedly generated more than $36,000,000 in gross receipts and $14,000,000 in gross profit from its business operations.  During the course of the conspiracy, a large portion of Tentlogix’s workforce in the Southern District of Florida was comprised of aliens who were not authorized to work in the United States. 

If convicted of the conspiracy charge, Hendry, Birdsall, and Hughes face up to 10 years in prison and a maximum fine of $250,000 or twice the loss or twice the gain caused by the offense.  TentLogix faces a maximum fine of $500,000 or twice the loss or twice the gain caused by the offense. If convicted of making false statements to a federal agency, Hendry and Birdsall face up to 5 years in prison and a maximum fine of $250,000 or twice the loss or twice the gain caused by the offense.

An indictment merely contains allegations.  A defendant is presumed innocent unless and until proven guilty in a court of law.

U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI in this matter.  This case is being prosecuted by Assistant U.S. Attorney Michael D. Porter.

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.

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

BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Kevin James Fox, 63, of Limestone, NY, who was convicted of receipt of child pornography, was sentenced to serve 220 months in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.

Assistant U.S. Attorney, Aaron J. Mango, who handled the case, stated that in May 2016, the defendant persuaded an adult female, identified as T.M., to find a minor male and engage in sexual activity with him for the purpose of producing a visual depiction. T.M. met a 16-year-old male (Victim 1) through Craigslist and began communicating with Victim 1 via text messaging that was sexual in nature. On June 1, 2016, T.M. picked up Victim 1 and drove to her residence, where she engaged in sexual activity with Victim 1.  T.M. used her cellular telephone to take approximately five photographs. T.M. then drove Victim 1 home and texted the images to a telephone number controlled by Fox. 

The defendant also persuaded T.M. to engage in sexual activity with a 17-year-old minor male (Victim 2) who was known to T.M. Between May 26 and June 21, 2016, T.M. engaged in sexual activity with Victim 2, at Fox’s request. T.M. also took photographs once again and sent the images to the defendant.

The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, Buffalo Office, under the direction of Gary Loeffert, Special Agent-in-Charge along with the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb.  

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Laugen also told the undercover agents that he had fake VGM machine-generated tickets created to support the numbers on the handwritten collection tickets in case there was an audit.  Laugen explained to the undercover agent that, “you got to steal in this business or you ain’t going to make any money.”

Sentencing is set for October 4, 2019, at 10:30 a.m., before Chief U.S. District Judge James D. Peterson at the U.S. Courthouse in Madison, Wisconsin.

The charges against these defendants are the result of an ongoing investigation being conducted by IRS Criminal Investigation and the Wisconsin Department of Revenue, Office of Criminal Investigation.  The prosecution of this case is being handled by Assistant U.S. Attorney Daniel Graber and Special Assistant U.S. Attorney Chadwick Elgersma.

United States Attorney Ron Parsons announced today that past and present Crow Creek Sioux Tribe councilmembers were indicted by a federal grand jury for embezzlement & theft from an Indian tribal organization, and aiding and abetting.

Roland Robert Hawk, Sr., age 50, Francine Maria Middletent, age 55, Roxanne Lynette Sazue, age 62, and Jacquelyn Ernestine Pease, age 34, all from Ft. Thompson, South Dakota, were indicted on July 9, 2019.  All four defendants appeared before U.S. Magistrate Judge Veronica Duffy on July 12, 2019, and pled not guilty to the Indictment.

According to the Indictment, in about March 2014 through February 2019, Hawk, Middletent, Sazue, and Pease embezzled, stole, willfully misapplied, willfully permitted to misapply, and converted to their own use over $1,000 of monies, funds, credit, goods, assets, and other property belonging to the Crow Creek Sioux Tribe.  During the timeframe, Hawk served as the elected Treasurer of the tribe, and all of the other defendants worked for Hawk in the tribe’s finance office.  In their respective leadership roles and employment positions, the defendants had the opportunity to access the funds that were embezzled from the tribe.  

The maximum penalties for each defendant upon conviction are as follows: 5 years imprisonment and/or a $250,000 fine; 3 years of supervised release; $100 to the Federal Crime Victims Fund; and restitution may be ordered. 

The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty. 

The investigation is being conducted by the U.S. Attorney’s Office and the Federal Bureau of Investigation.  Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.   

Hawk, Sr. was remanded to the custody of the U.S. Marshals Service.  Defendants Pease, Middletent, and Sazue were released on bond.  A trial date has not been set.

The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities.  The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities.  Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.

For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400.  To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.

GREAT FALLS – A Fort Belknap man admitted on Thursday to sexually abusing a girl on the Fort Belknap Indian Reservation, U.S. Attorney Kurt Alme said.

James Edward Snell, Jr., 42, pleaded guilty to aggravated sexual abuse. Snell faces a minimum mandatory 30 years in prison, a $250,000 fine and five years to life of supervised release.

U.S. District Judge Brian Morris presided and set sentencing for Oct. 24. Snell remains in custody.

Prosecutors said in court records that an investigation of Snell, and defendant Geneva Marie Nadeau, found photographs and videos of them in 2015 sexually abusing a girl, who was under the age of 12. Nadeau confirmed that Snell was in a photograph of a sex act involving the victim. Nadeau was sentenced in February to 22 years in prison and 15 years of supervised release after pleading guilty to aggravated sexual abuse.

Assistant U.S. Attorneys Ryan Weldon and Jared Cobell prosecuted the case, which was investigated by the FBI.

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After a lengthy investigation into the criminal conduct of various street gangs operating in and around Miami Gardens, Florida, a federal grand jury indicted 22 people in Miami on charges that include drug trafficking, armed drug trafficking, dealing in firearms, and firearm possession by convicted felons.  Some of the defendants are members and known associates of the Zone 3 gang, a Miami Gardens based gang.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office, Delma Noel-Pratt, Chief of the City of Miami Gardens Police Department, and Gadyaces S. Serralta, U.S. Marshal for the U.S. Marshals Service (USMS) Miami Field Office, made the announcement. 

Today’s operation involved approximately 200 federal and local law enforcement officers.  During the course of the operation, law enforcement officers arrested 17 of the 22 indicted defendants and seized over 40 firearms, approximately 220 rounds of assorted ammunition, cash, cocaine, crack, heroin, fentanyl, Alprazolam, marijuana, other drugs, and drug paraphernalia.

“As demonstrated by these charges and the arrests this morning, our commitment to combatting violent crime and drug trafficking in the City of Miami Gardens is unrelenting,” said U.S. Attorney Ariana Fajardo Orshan.  “Thanks to the collaboration of federal and local law enforcement, the armed sale of drugs and firearms by these Zone 3 gang members and associates in the City of Miami Gardens has come to an end.  We will continue to use all the tools at our disposal to combat violence, drug distribution, and the illegal sale and possession of firearms to ensure safety in our communities.”

“Today is truly a good day for our community, parts of which that have been terrorized by this group of violent individuals who have long-created chaos within the City of Miami Gardens.  I am proud of our partnerships to include the Miami Gardens Police Department.  This collaboration has led to the seizure of considerable evidence against this group to include more than 40 firearms,” said Special Agent in Charge Ari Shapira, ATF, Miami Field Division.  As we all know, even one firearm in the wrong hands can destroy countless lives.  This investigation proves that collaboration works, and demonstrates our commitment to combat gun violence and improve the communities of South Florida.  We all want our communities in South Florida to be filled with the sounds of happy children playing outside, not the noise of stray gunfire that strikes fear in the hearts of parents.  The people in Miami Gardens deserve no less.”

“Drug dealing and violent crime associated with gang activity have an insidious impact on our communities.  They take a toll on our citizens through street violence, increased law breaking, and addiction.  The vicious armed gangs pushing this poison into the streets tear apart the fabric of our communities,” said Scott A. Rottman, Assistant Special Agent in Charge, FBI Miami.  “It is a complex problem that requires effective partnerships between law enforcement agencies at the local, state and federal level.  Our combined efforts aim to disrupt and dismantle the criminal organizations involved in the illegal drug trade.  Removing drug traffickers and violent gang members from the streets means they can no longer threaten the health and safety of our communities.  We will continue to target these criminal organizations and their violent activities to ensure they are held responsible for the harm they cause.”

“I’m extremely proud of the hard work and dedication of my lead detectives, as well as other departmental personnel.  As a result of the strong partnerships that have been established with our federal, state and local partners, we are able to bring this case to a successful conclusion, said Miami Gardens Police Department Chief Delma Noel-Pratt.  “This case reaffirms the Miami Gardens Police Department’s commitment to building a safer community.” 

“Today, in Miami Gardens, the strong partnership between police officers and federal agents resulted in a successful operation that makes the City of Miami Gardens safer,” said Chief Deputy Darin D. Cooper for the U.S. Marshals Service.  “We remain committed to combatting violent crime.”

“Today is a win for residents of Miami Gardens, South Florida, as well as the many law enforcement agencies that worked together to say collectively, we will not tolerate crimes of any nature,” says Mayor Oliver Gilbert. “We are thankful to everyone involved in this operation and for the collaboration with agencies like the ATF, FBI and DOJ who provided access to expanded resources during the course of this investigation. Our combined efforts and activities have resulted in dangerous individuals, drugs, and illegal guns being taken off our streets.”

THE INDICTMENTS:

(1) United States of America v. Ernest Renard Smith, et al., Case No. 19-20415-CR-Gayles/Otazo-Reyes.

The first indictment, containing 21 counts, names: Ernest Renard Smith (“E. Smith”), 35; Ernest Smith, Jr. (“E. Smith Jr.”), 62; Thaddeus Auguast Smith, Jr. (“T. Smith”), 28; Denico Lynden Dudley McSweeney (“McSweeney”), 30; and Ivan Lewis Harris (“Harris”), 38, all of Miami Gardens.  According to the indictment, from at least as early as May 2018, and continuing through January 29, 2019, the defendants engaged in a conspiracy to possess with intent to distribute heroin, crack cocaine, marijuana, and ecstasy.  E. Smith, E. Smith Jr., T. Smith, and Harris each face up to 20 years in prison if convicted on the conspiracy count.  McSweeney faces up to 40 years in prison if convicted on the conspiracy count. 

The first indictment also charges E. Smith with seven counts of possession with intent to distribute a controlled substance, such as heroin, crack cocaine, and/or fentanyl, three counts of dealing in firearms and ammunition, one count of possession of a firearm in furtherance of a drug trafficking crime, and three counts of being a felon in possession.  If convicted on all counts, E. Smith faces up to 20 years in prison on each count of possession with intent to distribute charge, five years in prison on each count of the dealing in firearms and ammunition charge, life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five year mandatory minimum term in prison on this charge, and 10 years in prison on each felon in possession charge. 

The first indictment also charges T. Smith with possession with intent to distribute a heroin.  If convicted on this count, T. Smith faces up to 10 years in prison. 

The first indictment also charges McSweeney with three counts of dealing in firearms and ammunition and four counts of possession with intent to distribute heroin.  If convicted on all counts, McSweeney faces up to five years in prison on each dealing in firearms charge, and 20 years in prison on each possession with intent to distribute charge. 

(2) United States of America v. Sonya Anita Spivey, et al., Case No. 19-20417-Altonaga/Goodman.

The second indictment, containing 10 counts, names: Sonya Anita Spivey (“S. Spivey”), 49, of Miami Gardens; Jacqueline Renee Spivey (“J. Spivey”), 53, of Miami Gardens; Janie Spivey Bryant (“J. Bryant”), 68, of Miami Gardens; Charlie Billy Herman Taylor (“Taylor”), 25, of Miami Gardens; Keno Reuben Teveris Burton (“Burton”), 31, of Miami Gardens; Tekieya Nicole Aldridge (“Aldridge”), 41, of Opa Locka; and Alton Claude Hammonds (“Hammonds”), 38, of Miami.  According to the indictment, from at least as early as August 2018, and continuing through April 11, 2019, the defendants engaged in a conspiracy to possess with intent to distribute N-Ethypentylone, Alprazolam, cocaine, crack cocaine, eutylone, and ecstasy.  The defendants face up to 20 years in prison if convicted on the conspiracy count. 

The second indictment also charges S. Spivey with seven counts of possession with intent to distribute a controlled substance, such as, N-Ethypentylone, cocaine, Alprazolam, eutylone, and marijuana. If convicted on all counts, S. Spivey faces up to 5 years in prison for the possession with intent to distribute Alprazolam count and 20 years on each remaining possession with intent to distribute charge.

The second indictment also charges J. Spivey with possession with intent to distribute a controlled substance, such as fentanyl, eutylone, and marijuana.  If convicted on this count, J. Spivey faces up to 20 years in prison. 

The second indictment also charges J. Bryant with possession with intent to distribute a controlled substance, such as fentanyl, eutylone, and marijuana.  If convicted on this count, J. Bryant faces up to 20 years in prison. 

The second indictment also charges Taylor with possession with intent to distribute Alprazolam and possession of a firearm in furtherance of a drug trafficking crime.  If convicted on both counts, Taylor faces up to five years in prison on the possession with intent to distribute count and life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five year mandatory minimum term in prison on this charge. 

The second indictment also charges Burton with possession with intent to distribute a controlled substance, such as cocaine, eutylone, Alprazolam, and marijuana, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted on all counts, Burton faces up to 20 years in prison on the possession with intent to distribute count and life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five-year mandatory minimum term in prison on this charge.

(3) United States of America v. Michael Anthony Hardaway, et al., Case No. 29-20416-CR-Williams/Torres.

The third indictment, containing eight counts, names: Michael Anthony Hardaway, Jr. (“Hardaway”), 42; Clementa Leaford Johnson, Jr. (“Johnson”), 42; Eric Ransom (“Ransom”), 49; Erin Meil Williams (“Williams”), 39; and James Earl Cammon (“Cammon”), 40, all of Miami Gardens.  According to the indictment, from at least as early as October 2018, and continuing through April 11, 2019, the defendants engaged in a conspiracy to possess with intent to distribute eutylone, heroin, fentanyl, cocaine, crack cocaine, ecstasy, Percocet, and marijuana.  The defendants face up to 20 years in prison if convicted on the conspiracy count. 

The third indictment also charges Hardaway with four counts of possession with intent to distribute a controlled substance, such as heroin, fentanyl, and crack cocaine.  If convicted on all counts, Hardaway faces up to 20 years in prison on each count.

The third indictment also charges Williams with possession with intent to distribute a controlled substance, such as marijuana, crack cocaine, cocaine, eutylone, and heroin, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted on all counts, Williams faces up to 20 years in prison on each possession with intent to distribute charge and life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five-year mandatory minimum term in prison on this charge.

The third indictment also charges Cammon with possession with intent to distribute a controlled substance, such as marijuana, crack cocaine, cocaine, eutylone, and heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.  If convicted on all counts, Cammon faces up to 20 years in prison on each possession with intent to distribute charge, life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five-year mandatory minimum term in prison on this charge, and 10 years in prison on the felon in possession charge. 

(4) United States of America v. Dana De Von Smith, Case No. 19-20420-CR-King/Becerra.

The fourth indictment charges Dana De Von Smith (“D. Smith”), 49, of Miami Gardens, with two counts of possession with intent to distribute cocaine.  If convicted on both counts, D. Smith faces up to 20 years in prison on each count. 

(5) United States of America v. Theothis Rogers, Case No. 19-20419-CR-Gayles/Otazo-Reyes.

The fifth indictment charges Theothis Rogers (“Rogers”), 37, of Miami Gardens, with two counts of possession with intent to distribute N-Ethylpentylone.  If convicted on both counts, Rogers faces up to 20 years in prison on each count. 

(6) United States of America v. Jason Adam Dulman, Case No. 19-20422-CR-Bloom/Louis.

The sixth indictment charges Jason Adam Dulman (“Dulman”), 40, of Dania Beach, with possession with intent to distribute heroin and use of communications facility.  If convicted on both counts, Dulman faces up to 20 years in prison on the possession with intent to distribute charge and four years in prison on the use of communications charge. 

(7) United States of America v. Anthony Maurice Smith, Case No. 19-20418-CR-Ungaro/O’Sullivan.

The seventh indictment charges Anthony Maurice Smith (“A. Smith”), 29, of Miami Gardens, with possession with intent to distribute cocaine.  If convicted, A. Smith faces up to 20 years in prison. 

(8) United States of America v. Steven Alcime, Case No. 19-20421-CR-Scola/Torres

The eighth indictment charges Steven Alcime (“Alcime”), 30, of Miami, with dealing in firearms and being a felon in possession.  If convicted on both counts, Alcime faces up to five years in prison on the firearms charge and 10 years in prison on the felon in possession charge. 

Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants. 

Through the collaborative Southern District of Florida’s Violence Reduction Partnership (“VRP”), the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. Through these Partnerships, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities in Miami-Dade, Broward and Palm Beach Counties.  The VRP strives to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations.  The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at usafls.vrp@usdoj.gov (link sends e-mail) or by calling (305) 961-9134.

The members of the VRP who participated or assisted in this investigation include the United States Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Miami Field Office,   Federal Bureau of Investigation, United States Marshals Service Fugitive Task Force, Miami Gardens Police Department, Miami-Dade Police Department, Miami Field Office, Miami-Dade Police Department.

This investigation, Operation End Zone, is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

U.S. Attorney Fajardo Orshan commended the FBI, ATF, City of Miami Gardens Police Department, and USMS for their dedicated efforts to combat violent crime and drug trafficking in South Florida.  She thanked the Miami-Dade Police Department for their assistance.  These cases are being prosecuted by Assistant U.S. Attorneys Rilwan Adeduntan and Stephanie Hauser.  Assistant U.S. Attorney William Zloch is handling the forfeiture aspects of this case.

An indictment is a charging instrument containing allegations. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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.

St. Louis, MO – William Timothy Hopmeier, 48, of Des Peres, pled guilty to two counts of Production of Child Pornography.  Hopmeier appeared before United States District Judge Audrey G. Fleissig and set sentencing for October 23, 2019.

According to court documents, from June 2017 to January 31, 2018, Hopmeier and co-defendant Kayla Bridges used a cell phone to video record two minor females engaging in sexually explicit conduct on several occasions.

Hopmeier faces a mandatory minimum term of imprisonment of at least 15 years.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

The case was investigated by the St. Louis County Police Department and the Federal Bureau of Investigation.  Assistant U.S. Attorney Rob Livergood is handling the case for the U.S. Attorney’s Office.

Ryan David Green, age 27 of Midland, faces up to life in federal prison time after pleading guilty this week to firearm and drug trafficking charges in connection with the murder of two Midland residents in July 2015, announced U.S. Attorney John F. Bash, Midland Police Chief Seth Herman and DEA Special Agent in Charge Kyle Williamson, El Paso Division.

Appearing before U.S. District Judge David Counts on Wednesday, Green pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine; one count of discharging a firearm in furtherance of a drug trafficking crime; and, one count of murder resulting from the discharge of a firearm during and in relation to a drug trafficking crime.

By pleading guilty, Green admitted that on July 17, 2015, he and his co-defendants—Sean Blake Jobe and Trace Ryan Roland—conspired to murder a Midland man because of drug money the man owed to Roland. 

According to court records, in the early morning hours of July 17, 2015, Green and Jobe went to a home in Midland and shot and killed the man and his girlfriend, who were living in a shed behind the home.  Then they set fire to the shed and burned the victims beyond recognition. 

Earlier this year, both Jobe and Roland pleaded guilty to the same three federal charges.  All of the defendants remain in federal custody.  Sentencing for all three defendants is scheduled for October 10, 2019, before Judge Counts in Midland.

The Midland Police Department and the Drug Enforcement Administration investigated this case.  Assistant U.S. Attorneys Brandi Young and Glenn Harwood are prosecuting this case on behalf of the Government.

SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell, Jr., sentenced Bar Shani, 27, of San Francisco, to 20 months in prison for conspiring to launder money, U.S. Attorney McGregor W. Scott announced.

According to court documents, between October 2016 and November 2017, Shani conspired to launder the proceeds of an illegal gambling business with Atir Dadon, 34, of Sherman Oaks, and Orel Gohar, 28, of San Francisco. Orel Gohar and Yaniv Gohar, 35, of Berkeley, operated an illegal gambling business that placed and maintained video slot machines at businesses in Northern California, including locations in the Eastern District of California. Shani, Dadon, and Orel Gohar agreed that Orel Gohar would give cash proceeds from the Gohars’ gambling business to Shani and Dadon, who would use the cash to pay the workers in their cosmetics business. They agreed that Orel Gohar would give cash to Shani and Dadon, and in return, they would arrange for Orel Gohar to receive checks from the cosmetics business. To conceal the fact that the financial transactions involved the proceeds of illegal activity, Shani, Dadon, and Orel Gohar used code words in their conversations about the transactions, referring to the money as bottles of alcohol or other non‑cash items. Dadon also put false memo lines on the checks, indicating that Orel Gohar had provided consulting and training services, when in fact he had not done so. Between October 2016 and November 2017, Shani and Dadon laundered $159,900 from the Gohars’ gambling business.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.

On July 12, co-defendant Dadon was sentenced by U.S. District Judge Garland E. Burrell, Jr., to 22 months in prison. Co-defendant Adam Atari, 35, of Sherman Oaks, pleaded guilty to conspiring to launder money and witness tampering. Sentencing for Atari is set for Aug. 30. Co-defendant May Levy, 28, of Walnut Creek, pleaded guilty to operating an illegal gambling business, and on May 10, 2018, was sentenced to two years of probation.

Co-defendants Yaniv Gohar and Orel Gohar fled the United States upon their release in December 2017 and remain at large. Anyone with information about their whereabouts should call the Federal Bureau of Investigation at (916) 746-7000.

Co-defendant Raz Razla, 48, of Sherman Oaks, is charged with making false statements to the grand jury. Co-defendant Eran Buhbut, 33, of Oakland, is charged with operating an illegal gambling business. These charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, these remaining defendants face a statutory maximum penalty of 5 years in prison and a fine of up to $250,000, or both. The actual sentences, however, will 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.

SAN FRANCISCO - Kia Zolfaghari pleaded guilty today to charges regarding his role in a conspiracy to distribute fentanyl, as well as to related weapons and money laundering charges, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Chris Nielsen.  The plea was accepted by the Honorable Susan Illston, Senior United States District Judge.

In the plea agreement, Zolfaghari, 42, of San Francisco, admitted that from May of 2014 until June of 2016 he agreed with others to distribute and possess with intent to distribute fentanyl.  Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that attempt to mimic the effects of oxycodone, and can typically be obtained at a lower cost than genuine oxycodone.   However, small variations in the amount or quality of fentanyl can have significant effects on the potency of the counterfeit pills, raising the danger of overdoses.  In this case, Zolfaghari admitted that his role in the conspiracy included buying a pill press, using it to manufacture pills, and selling the pills, principally online.  Zolfaghari admitted he stamped the pills in a manner consistent with genuine oxycodone and advertised the pills as oxycodone, but that the pills did not contain oxycodone and instead contained fentanyl.  

In his plea agreement, Zolfaghari also described the roles of two of his co-conspirators in the drug trafficking conspiracy.  For example, Zolfaghari acknowledged that one of his co-conspirators assisted him in the operation by packaging and mailing pills as well as cleaning up after he manufactured the pills.  Additionally, Zolfaghari explained that another co-conspirator assisted him by maintaining a post office box for the delivery of fentanyl powder that he used to make pills and by delivering the powder that arrived in that post office box.  Zolfaghari admitted that over the course of the conspiracy he made over $400,000 through his sales, and sold at least 13,000 fentanyl pills.

Zolfaghari also pleaded guilty to conspiring to launder the proceeds of the drug trafficking operation.  Specifically, Zolfaghari admitted that sometime before May 1, 2014, he agreed with others to engage in several financial transactions to conceal the of those proceeds of his drug sales. For example, he arranged to be paid in the digital currency bitcoin, he used unlicensed bitcoin brokers to exchange the bitcoin for cash, and he directed a co-conspirator to purchase gift cards with the cash.  Zolfaghari further admitted that these transactions were intended to conceal the source and ownership of the proceeds of his drug transactions.  Zolfaghari also admitted he used the proceeds from his drug trafficking operation to make a $40,000 down payment (and additional monthly payments) on a 2015 Audi RS5 Coupe; to make payments on an apartment in San Francisco; and to make purchases of luxury goods such as high-end watches, designer shoes, and jewelry.

Zolfaghari was arrested on June 10, 2016.  At the time of his arrest, Zolfaghari was found in possession of a Smith & Wesson handgun and 500 pills containing fentanyl.  

On November 29, 2016, a federal grand jury returned a superseding indictment against Zolfaghari, charging him with four counts of distribution and possession with intent to distribute fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B); four counts of distribution and possession with intent to distribute 40 grams or more of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B); and one count each of conspiracy to manufacture, to possess with intent to distribute, and to distribute 400 grams or more of fentanyl, in violation of 21 U.S.C. § 846; using, carrying, or possessing a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c); conspiracy to launder drug proceeds, in violation of 18 U.S.C. § 1956(h); and engaging in money laundering in violation of 18 U.S.C. § 1957.  Today, Zolfaghari pleaded guilty to the drug trafficking and money laundering conspiracies, as well as to the weapons charge.    

Judge Illston scheduled Zolfaghari’s sentencing for November 22, 2019.  Zolfaghari faces a maximum sentence of life in prison and a $10,000,000 fine for the conspiracy to manufacture and distribute fentanyl charge.  The charge also carries a minimum 10 years in prison. The statutory maximum for the money laundering conspiracy charge is 20 years in prison, and a fine of $500,000 or twice the gain or loss from the criminal activity.  The statutory maximum for the weapons charge is life in prison and a $250,000 fine.  This charge carries a minimum five years in prison, which term must run consecutive to any other sentence imposed.  Additional terms of supervised release and monetary assessments also may be ordered; however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  

In April 2017, Zolfaghari jumped bail and failed to appear for a hearing in this case.  On February 9, 2018, Judge Illston sentenced his wife and co-defendant, Candelaria Dagandan Vazquez, 43, who was also a fugitive, to 151 months imprisonment.  In February 2019, the United States Marshals Service, together with the Mexican Federal Police, located Zolfaghari and Vazquez in Mexico.  Vazquez is currently serving her sentence in the custody of the Federal Bureau of Prisons.  Also prosecuted for his role in the drug distribution scheme was King Edward Harris, II, 37, of Oxnard.  On September 22, 2017, Judge Illston sentenced Harris to five years in prison for possession and distribution of 40 grams or more of fentanyl.

Assistant U.S. Attorney Nikhil Bhagat is prosecuting the case with the assistance of Linda Love.  The prosecution is the result of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Internal Revenue Service Criminal Investigation Division, the United States Postal Inspection Service, and U.S. Customs and Border Protection, with assistance from the United States Marshals Service, the San Francisco Police Department, the San Francisco Fire Department, and the Mexican Federal Police.  This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. 
 

RENO, Nev. – A federal jury found a felon guilty of stealing a car at gunpoint, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.

After a four-day trial, a jury found Eric Romero-Lobato, 39, guilty of one count of carjacking, one count of use of a firearm during and in relation to a crime of violence, and one count of felon in possession of a firearm. Romero-Lobato has prior convictions for unlawful reentry by a deported person and for eluding a police officer.

United States District Judge Larry R. Hicks presided over the trial and scheduled a sentencing hearing on November 19, 2019. The maximum penalty is life imprisonment.

According to court documents and evidence presented at trial, Romero-Lobato, armed with a 9mm semi-automatic pistol, stole a car from an individual at gunpoint. Reno Police Department officers located the stolen vehicle within hours of the carjacking. Romero-Lobato lead the police on a high speed chase before wrecking the stolen car. He was then apprehended. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Reno Police Department.

Romero-Lobato is in custody and is awaiting a jury trial for the remaining counts in the indictment. The charges are related to the attempted robbery of a bar and grill in Sparks. The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sparks Police Department. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Assistant United States Attorneys Megan Rachow and Steven Myhre are prosecuting both cases.

This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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SACRAMENTO, Calif. — Cody Patrick Cannon, 31, a transient, pleaded guilty yesterday to bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced.

According to court documents, between January and August 2018, Cannon engaged in a scheme in which he used counterfeit U.S. Postal Service keys to open apartment complex mailboxes throughout Northern California and steal mail. Cannon and others involved in the scheme then harvested personally identifiable information, financial information, and credit and debit cards. They defrauded banks by using the stolen cards to purchase goods and withdraw cash from ATMs in Vacaville, Folsom, Rocklin, and Rancho Cordova.

On August 2, 2018, Cannon and his co-defendant, Candice Freitas, were arrested at their RV parked in a hotel parking lot in Rancho Cordova. They were found to be in possession of stolen mail, checks, multiple stolen and fake California driver’s licenses, at least two passports bearing the names of others, and at least seven counterfeit U.S. Postal Service mail keys.

This case is the product of an investigation by the United States Postal Inspection Service, Sacramento County Sheriff’s Department, Folsom Police Department, and Vacaville Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Cannon remains in custody pending sentencing. Cannon’s co-defendant, Candice Freitas, has pleaded not guilty to the charges in the indictment and she remains in custody pending trial. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Cannon is scheduled to be sentenced by Judge Troy L. Nunley on October 3, 2019. He faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine for bank fraud. He also faces a mandatory two-year consecutive sentence for aggravated identity theft. The actual sentence, however, will 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.

          LOS ANGELES– A former Beverly Hills stockbroker who worked with fugitive hedge fund manager Florian Homm was found guilty by a jury late this afternoon of 18 federal criminal charges for participating in a stock manipulation scheme designed to pump up the reported profits of hedge funds that fraudulently caused investors approximately $200 million in losses.

          Todd Ficeto, 52, of Marion, Ohio, was found guilty after a 17-day jury trial. The jury found Ficeto guilty of one count of conspiracy to commit securities fraud and wire fraud, seven counts of securities fraud, two counts of investment adviser fraud, one count of money laundering conspiracy, five counts of unlawful money transactions, one count of obstruction of justice, and one count of making false statements.

          Ficeto was the president of a Beverly Hills-based broker-dealer, Hunter World Markets, which he co-owned with Florian Wilhelm Jürgen Homm, who was first indicted in March 2013 on charges of securities fraud and wire fraud after he was arrested in Italy. Homm later fled to Germany and is a fugitive from justice. Homm was the founder and chief investment officer of Absolute Capital Management Holdings (ACMH), a Cayman Islands-based investment advisor that operated from Palma de Majorca in Spain and managed eight hedge funds (the Absolute Funds).

          Between September 2004 and September 2007, Homm directed the Absolute Funds to buy billions of shares of thinly traded, United States-based “penny stocks” through Hunter World Markets that Ficeto located and brought to Homm through investment banking deals. Ficeto then facilitated the manipulative stock purchases and caused millions of shares of the same penny stocks to be given to Homm, Hunter World Markets, and CIC Global Capital, which was controlled by co-defendants Colin Heatherington, of Port Alberni, British Columbia, Canada; and Craig Heatherington, of Queensland, Australia.

          Ficeto, Homm, and other co-conspirators fraudulently manipulated the penny stocks to inflate and artificially prop up their prices to exaggerate the purported profitability of the Absolute Capital hedge funds. As a result, the co-conspirators were able to sell their own shares of the penny stocks at the inflated prices to the hedge funds. The stock price inflation also served to fraudulently overstate the performance of the hedge funds which, in turn, generated substantial performance fees and other compensation for defendant Homm and his co-conspirators. The co-conspirators then used the inflated performance figures to induce investments from unsuspecting victim-investors.

          Ficeto and his co-conspirators worked together in an elaborate conspiracy to launder the illicit proceeds throughout the world.

          Ficeto also engaged in unlawful monetary transactions by sending nearly $10 million of illicit proceeds to an account in the Cook Islands days before his testimony before the Securities and Exchange Commission, and then lied to the SEC about the Cook Islands account. Ficeto also used a hedge fund called the Hunter Fund, in which the Absolute Funds invested and also was used to conceal investments by the Absolute Funds in the penny stocks and to manipulate the stock market.

          As the scheme unraveled, Homm abruptly resigned from the firm in the middle of the night on September 18, 2007, according to court documents.

          In March 2013, Homm was taken into custody in Italy after being arrested at the Uffizi Gallery in Florence. Homm was arrested pursuant to a provisional arrest warrant sought by federal prosecutors in Los Angeles after they filed a criminal complaint containing charges related to the alleged fraud scheme. The United States sought Homm’s extradition to the United States and he was ordered extradited by the Italian Ministry of Justice, but Homm ultimately was released and is believed to have fled to Germany, where he remains a fugitive.

          Colin Heatherington is in Canada and facing extradition to the United States.

          United States District Judge Virginia A. Phillips has scheduled an October 7 sentencing hearing for Ficeto. Each charge of conspiracy to commit securities fraud and securities fraud carry a statutory maximum penalty of 25 years in federal prison. The money laundering charges each carry a maximum penalty of 10 years in federal prison. Each charge of investment adviser fraud, obstruction of justice, and false statements carry a maximum statutory penalty of five years in federal prison.

          This matter was investigated by Federal Bureau of Investigation. The United States Securities and Exchange Commission, and the Financial and Regulatory Authority provided assistance to the FBI’s investigation.

          This case is being prosecuted by Assistant United States Attorneys Cassie D. Palmer of the Public Corruption and Civil Rights Section, Scott Paetty of the Major Frauds Section, and Ian V. Yanniello of the General Crimes Section.

TULSA, Okla. –Three individuals were sentenced this week in U.S. District Court for crimes associated with stealing money, gift cards and credit cards from the mail, announced U.S. Attorney Trent Shores.

“The mail is regarded as sacred. It’s personal. Unfortunately, unscrupulous thieves see the mail as a source of income. They steal credit cards, checks, and personal financial information from mailboxes and then proceed to plunder individual bank accounts and cheat merchants,” said U.S. Attorney Trent Shores.  “The impact on individual victims can be devastating, costing countless hours of backtracking on fraudulent spending and fixing personal credit. Vigilance is key to thwarting these criminals. So are enforcement and accountability. When you see someone raiding a neighbor’s mailbox or notice suspicious activity in your financial accounts, immediately make a report to the U.S. Postal Inspection Service at 918-732-6616 as well as local law enforcement. The criminals investigated will be vigorously prosecuted by this U.S. Attorney’s Office.”

Christopher Jacob Froehlich, 33, of Salisaw, was sentenced to two years in federal prison for aggravated identity theft. Froehlich purchased items using a stolen credit card, therefore assuming the owner’s identity. Following his prison sentence, he will serve one year on supervised release. Froehlich was arrested on Nov. 30, 2018 after Broken Arrow police officers attempted to initiate a traffic stop. Instead of stopping, Froehlich accelerated and led officers on a 17-minute pursuit, running stoplights at major intersections and reaching speeds of 90 mph. The driver and two passengers also threw multiple items from the car until they crashed into a fire hydrant. Upon their arrest and subsequent investigation, officers discovered several grams of methamphetamine and a Walmart receipt totaling $1,058.29 on Froehlich’s person. The corporate credit card, previously stolen from a mailbox, was used to purchase the items at Walmart just before the traffic stop. Froehlich admitted to stealing checks and credit cards from mailboxes over a 30-day period and fraudulently utilizing the credit card.

The United States Secret Service and Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorney Richard M. Cella prosecuted the case.

Cory Blake Ackley and Jennifer Kathryn Steffen were sentenced this week for possession of stolen mail as well as a revocation of supervised released in a previous mail theft case from 2016. Ackley, 29, of Tulsa, was sentenced to a total of 17 months in federal prison to be followed by three years of supervised release. Steffen, 35, of Tulsa, was sentenced to a total of 33 months in federal prison to be followed by three years of supervised release. On Dec. 27, 2018, Tulsa Police Department officers initiated a traffic stop after observing Ackley and Steffen stealing mail from multiple residential mailboxes in South Tulsa. After searching the vehicle, officers found 391 pieces of unopened mail that originated from 51 separate addresses and included billing statements, credit card applications, gift cards, financial and bank statements, insurance and tax information, Amazon packages and other documents. Ackley and Steffen have multiple convictions related to stealing mail.

The Tulsa Police Department and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin prosecuted the case.

Protecting yourself from mail theft and related crimes:

• Never put outgoing mail in your residential mailbox for pick up.
• Promptly remove incoming mail from your residential mailbox.
• Rent a post office box.
• Consider purchasing a locking residential mailbox.
• Don’t send cash in the mail.
• File a change of address if you move.
• Have packages held at the post office for pick up.
• Have the recipient sign for important mailed items.
• Deposit outgoing mail in collection locations inside the post office.

Report mail fraud, mail theft, and identity theft to the U.S. Postal Inspection service at https://www.uspis.gov/report/.

CHARLESTON, W.Va. – A New Jersey man pleaded guilty for his participation in a drug trafficking operation in Fayette County, announced United States Attorney Mike Stuart. James Terry, 38, of East Orange, New Jersey, entered his guilty plea to conspiracy to distribute oxycodone.  Stuart commended the cooperative investigative efforts of the Drug Enforcement Administration and the Central West Virginia Drug Task Force, with the support of the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fayette County Sheriff’s Department, the Beckley/Raleigh County Drug Task Force, the Southern Regional Drug and Violent Crime Task Force, the Fayetteville Police Department, and the Oak Hill Police Department. 

“Operation Mountaineer Highway shut down a significant DTO responsible for bringing large amounts of oxycodone, heroin, fentanyl, meth and cocaine into our central and southern counties,” said United States Attorney Mike Stuart.  “Terry is one of the 12 defendants charged by federal indictment as a result of the very thorough investigation conducted by law enforcement.”

Terry admitted that between October 2017 and September 2018, he worked with other members of a drug trafficking organization operating between Fayette County, West Virginia and New Jersey to distribute oxycodone pills.  It was established that on May 31, 2018, Terry distributed over 500 oxycodone pills to another member of the drug trafficking organization in Fayette County, West Virginia.  Terry obtained the oxycodone tablets in New Jersey and transported them to West Virginia.  It was further established that on June 20, 2018 he was driving a car again transporting oxycodone pills from New Jersey to West Virginia.  It was the plan to deliver the pills to the same member of the drug trafficking organization in West Virginia to be redistributed and sold illegally in the Southern District of West Virginia for profit.  Prior to delivering the pills to West Virginia, the car Terry was driving was stopped by the Pennsylvania State Police.  During the traffic stop, approximately 997 oxycodone pills were recovered.  The pills were hidden in a secret compartment, commonly referred to as a trap.         

Terry faces up to 20 years in prison and a $1,000,000.00 fine when he is sentenced on October 3, 2019.

Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.

Follow us on Twitter:SDWVNewsandUSAttyStuart 

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CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that a Charleston woman was sentenced in federal court on her convictions for possession with the intent to distribute heroin and fentanyl.  Amy Wilkinson, 44, of St. Albans, was sentenced to 35 months in federal prison.  Stuart commended the investigative efforts of the Kanawha County Sheriff’s Department STOP Team and the DEA Task Force.

“Another peddler of deadly heroin and fentanyl goes to federal prison,” said United States Attorney Mike Stuart.  “Law enforcement and prosecution play critical roles in addressing the opioid epidemic.”   

At Wilkinson’s plea hearing earlier this year, it was established that Wilkinson possessed controlled substances with the intent to distribute on two different dates.  On February 22, 2017, officers with the Kanawha County Sheriff’s Department and DEA Task Force officers executed a search warrant on Empire Drive near St. Albans.  During the execution of the search warrant, officers found Wilkinson inside the residence in possession of fentanyl that was individually packaged for distribution.  Wilkinson admitted on that date that she intended to distribute the fentanyl in and around Kanawha County. 

On March 2, 2017, Wilkinson was caught again in possession of a controlled substance with the intent to distribute.  On this date, an investigation by the Kanawha County Sheriff’s Department discovered that Wilkinson had been selling drugs from a motel room in St. Albans.  A search of the motel room revealed that Wilkinson was in possession of 23 grams of heroin that she admitted she intended to distribute in the Southern District of West Virginia.      

Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.

Follow us on Twitter:SDWVNewsandUSAttyStuart 

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