BOSTON – A Dominican national residing in Dorchester was sentenced Wednesday for Social Security fraud.

Saddan Bautista Diaz, 28, was sentenced by U.S. District Court Chief Judge Patti B. Sarris to 18 months in prison after pleading guilty in June 2019 to one count of false representation of a Social Security Number.  Bautista Diaz was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud. 

On June 27, 2014, Bautista Diaz, a citizen of the Dominican Republic, applied for a Massachusetts Identification Card using the name and Social Security number of a Puerto Rican citizen. He presented a Puerto Rican birth certificate and a Social Security card in the other person’s name to the Massachusetts Registry of Motor Vehicles as proof of his identity. Based on the application and supporting identity documents, Bautista Diaz was issued an identification card in the name of the Puerto Rican citizen.

United States Attorney Andrew E. Lelling; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.  
 

BOSTON – A Newton man was sentenced yesterday in federal court in Boston for illegally using the identity of another individual to apply for two business loans.  

Igor Mosieev, 59, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and five years of supervised release. In addition, Mosieev was ordered to pay restitution in the amount of $91,418. 

 In May 2019, Mosieev pleaded guilty to two counts of bank fraud and one count of aggravated identity theft. In June 2018, Mosieev was arrested and charged with co-defendant Alexander Grinis, 47, of Jamaica Plain.  

Grinis was the manager of Eastern Bank in Auburndale where his responsibilities included assisting customers with opening and closing accounts and applying for loans and lines of credit. In approximately February 2015, Grinis assisted Mosieev in opening a checking and savings account at Eastern Bank with the license and Social Security card of another individual, without the knowledge or consent of that person. Later that year, Grinis assisted Mosieev in adding the individual to a business account in the name of TFC Enterprises, LLC. Thereafter, Mosieev forged the individual’s name on applications for two purported business loans. On each loan application, Grinis falsely certified that he had complied with all bank procedures and, as a result, the loans were approved. The proceeds of the two loans were subsequently distributed to the business checking account and Mosieev forged the individual’s name on checks and withdrew money from the account to pay for his own personal expenses. In addition, Mosieev, with Grinis’ assistance, caused proceeds from the business checking account to be wired to Russia, Canada, and elsewhere overseas using the individual’s name. Both loans defaulted and were never paid back to Eastern Bank, resulting in a loss of over $90,000. 

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit prosecuted the case. 

United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer, and Assault with a Dangerous Weapon.

Amos Talks, age 24, was indicted on August 13, 2019.  He appeared before U.S. Magistrate Judge William D. Gerdes on September 3, 2019, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on June 21, 2018, Talks did forcibly assault, resist, oppose, impede, intimidate, and interfere with a federal law enforcement officer, and that such conduct involved the use of a dangerous weapon.

The charges are merely accusations and Talks is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Federal Bureau of Investigation.  Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.   

Talks was released on bond pending trial.  A trial date has not been set.

United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon.

Oscar Lance Whiteman, age 31, was indicted on September 4, 2019.  He appeared before U.S. Magistrate Judge Mark A. Moreno on September 5, 2019, and pled not guilty to the Indictment.

The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on June 28, 2019, Whiteman assaulted a female, which resulted in serious bodily injury, and on August 11, 2019, Whiteman assaulted that same female and a male, which also resulted in serious bodily injury to both victims. The Indictment further alleges that Whiteman assaulted the male victim with a dangerous weapon, that is, shod feet.

The charges are merely accusations and Whiteman is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.   

Whiteman was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Voluntary Manslaughter, Discharging a Firearm During and in Relation to a Crime of Violence, and Child Abuse was sentenced on September 3, 2019, by U.S. District Judge Roberto A. Lange.

Dee Hawk Moran, age 23, was sentenced to a total of 156 months in federal prison.  He was sentenced to 36 months in federal prison for Voluntary Manslaughter and 18 months in federal prison for Child Abuse, with such sentences to be served concurrently, followed by 3 years of supervised release.  He was also sentenced to 120 months in federal prison for Discharging a Firearm During and in relation to a Crime of Violence, with such sentence to be served consecutively to the other sentences.  Moran was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $300.

The convictions for Voluntary Manslaughter and Discharging a Firearm During and in Relation to a Crime of Violence stemmed from an incident that occurred in the early morning hours of November 11, 2017.  On that date, Moran was at a house party in Eagle Butte, where the victim was also present.  At approximately 3:00 A.M, the victim was in the garage and got into an argument with another man, who was also attending the party.  The victim took off his jacket and punched the man in the face.  Moran, who was nearby, then produced a .22 caliber pistol and fired multiple shots at the victim, mortally wounding him.  Moran was indicted by a federal grand jury on November 14, 2017.  He pled guilty on May 20, 2019.

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.  The Department of Justice reinvigorated PSN 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.

The conviction for Child Abuse stemmed from conduct that occurred in 2015 and 2017.  Between September 1, 2015, and June 16, 2017, Moran cruelly exposed, tortured, tormented, and cruelly punished a child who had not attained the age of eighteen.  Moran was indicted by a federal grand jury on January 23, 2019.  He pled guilty on May 20, 2019.

These cases were investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation.  Assistant U.S. Attorney Kirk Albertson prosecuted the cases.

Moran was immediately turned over to the custody of the U.S. Marshals Service.

PROVIDENCE – United States Attorney Aaron L. Weisman today urged everyone, particularly online users, to remain vigilant for malicious cyber activity and would-be scammers who may target Hurricane Dorian disaster victims and potential donors.

Fraudulent emails commonly appear after major natural disasters and often contain links or attachments that direct users to malicious websites. Users should exercise caution in handling any email with a hurricane related subject line, attachment, or hyperlink. In addition, users should be wary of social media pleas, texts, or door-to-door solicitations relating to severe weather events.

U.S. Attorney Aaron Weisman commented, “We have all seen the heartbreaking pictures and heard the heart wrenching details of the devastation hundreds of thousands of people are experiencing in the wake of Hurricane Dorian. Sadly, there are always heartless, greedy individuals waiting to pounce on the kindness of others and victimize them.”

 U.S. Attorney’s across the country are encouraging Americans to review the following resources for more information and to take preventative measures to avoid becoming victims of malicious activity.

• Staying Alert to Disaster-related Scams

• Before Giving to a Charity

• Staying Safe on Social Networking Sites

• Avoiding Social Engineering and Phishing Attacks

If you believe you have been a victim of cybercrime, file a complaint with the Federal Bureau of Investigation Internet Crime Complaint Center at www.ic3.gov

###

BOSTON – Jasiel F. Correia II, the Mayor of Fall River, Massachusetts, has been arrested and charged for allegedly extorting marijuana vendors for hundreds of thousands of dollars in bribes; extorting a building owner for cash and a Rolex watch in exchange for activating the water supply to a commercial building; and demanding that his chief of staff give him half of her salary in return for appointing her and allowing her to keep her city job.  Correia’s former Chief of Staff was also charged today on extortion, theft and bribery, and false statement charges.  Both will appear in federal court today.

Correia, 27, has been charged in a superseding indictment with bribery; extortion conspiracy; extortion and aiding and abetting; wire fraud; and filing false tax returns.  Correia was previously arrested and charged in October 2018 for his involvement in a scheme to defraud investors in a company called SnoOwl, which was co-owned by Correia.  Correia was arrested this morning and will appear in federal court today at 2:30 p.m. on the new charges. 

    Genoveva Andrade, 48, of Somerset, was charged in a criminal complaint with extortion conspiracy; extortion; theft and bribery; and false statements.  Andrade served as Correia’s Chief of Staff from November 2017 through December 2018.  She stepped down in January 2019 to run Correia’s March 2019 recall campaign.  Andrade was arrested and will appear in federal court at 2:45 p.m. today.  

Antonio Costa, 51, of Fall River; Hildegar Camara, 58, of Fall River; and David Hebert, 54, of Westport were charged separately in Informations with extortion conspiracy, extortion, and false statements in connection with subsequent false statements to federal agents about their roles in assisting Correia obtain money and property from marijuana vendors.   Costa, Camara and Hebert will appear in court at a later date.

According to the superseding indictment, Correia agreed to issue non-opposition letters to marijuana vendors, which are required in order to operate in Massachusetts, in return for cash bribes and other payments.  The bribes alleged today ranged from approximately $100,000 to $250,000 in cash, campaign contributions and mortgage discharges - in return for non-opposition letters and host community agreements.   Marijuana was also exchanged for resale.  It is alleged that Andrade and Correia met with marijuana vendors and discussed signing non-opposition letters in return for cash.

Under Massachusetts law, non-opposition letters from the head of local government are required in order to obtain a license to operate a marijuana business.  This is true for medical and recreational marijuana businesses.  These letters state that the head of local government has verified that the proposed facility is in a permissible zoning district.  In this instance, Correia was solely responsible for approving all non-opposition letters.  In addition, applicants seeking marijuana licenses are required to enter into host community agreements, between the marijuana company and the local government, stating that the company will give up to 3% of its gross sales to the local government.

To date, Correia has issued at least 14 non-opposition letters for marijuana businesses to operate in Fall River, including two for his current girlfriend’s brother.  On August 12, 2019, the Fall River City Council passed an ordinance to limit the number of marijuana licenses in Fall River to 20% of off-premise liquor licenses or 11, whichever is greater.  On August 19, 2019, Correia vetoed the order, claiming that it would eliminate competition and that a proponent of the ordinance had a conflict of interest.

It is further alleged that Correia obtained a stream of benefits, including cash and a Rolex watch valued at approximately $7,500 – $12,000, in exchange for official action and assistance that was favorable to Middleman #1 and his business(es) in Fall River.  This included directing Fall River public employees to approve and pay for permits and excavating work to activate the water line for the sprinkler system at Middleman #1’s commercial property in Fall River.    

Lastly - according to the indictment, in November 2017, Correia hired Andrade as his Chief of Staff with a salary of approximately $78,780 for a term of one year.  Less than three weeks later, Correia personally approved a $10,000 “snow stipend” to Andrade. She would receive the $10,000 payment in two installments.  After she received the first installment of $5,353, Andrade allegedly gave Correia $4,300.  After she received the second installment - of $5,353, Andrade again paid Correia $4,300.  

This pattern, in which Andrade promptly kicked back a substantial portion of her paychecks to Correia, continued for approximately eight months.  For instance, Andrade received her first paycheck for $2,046. Four days later, Andrade gave Correia $1,200.  In total, between December 2017 and July 2018, Andrade kick back approximately $22,800 to Correia.  Andrade shared information about the kickback scheme with MJ Vendor #5 allegedly saying, “you want to hear something even more f***ed up … I have to give [Correia] half of my salary.”  

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to twice the loss involved and restitution. The charges of filing false tax returns provide for a sentence of up to three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss.  The charges of extortion conspiracy provide for a sentence of up to 20 years, three years of supervised release and a $250,000 fine.  The charges of extortion aiding and abetting provide for a sentence of up to 20 years, three years of supervised release and a $250,000 fine.  The bribery charge provides for a sentence of up to 10 years, three years of supervised release and a $250,000 fine.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General made the announcement. Assistant U.S. Attorney Zachary Hafer, Chief of Lelling’s Criminal Division, is prosecuting the case.

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

Lexington, Ky. – A federal grand jury sitting in London has indicted Douglas M. Edmonson, 36, of Corbin, Kentucky; Dallas Anna Chain Perkins, 25, of Jellico, Tennessee; Bryanna Soper, 25, of Corbin, Kentucky; and Erik Peace, 32, of Corbin, Kentucky for kidnapping.     

The charge stems from a yearlong investigation by the ATF, the Kentucky State Police, and the Williamsburg Police Department.  According to the indictment, the defendants kidnapped Victim 1 on August 10, 2018, for the purpose of assaulting Victim 1.  The defendants used a Facebook account to lure Victim 1 to a prearranged meeting place.  The indictment further alleges that the defendants transported Victim 1 across state lines during the course of the kidnapping.  Pursuant to the indictment, Victim 1 was held against her will into August 11, 2018.  

If convicted the defendants face up to life in prison.  Soper had her initial appearance on September 4, 2019.  Edmonson, Perkins, and Peace will have initial appearances scheduled.   

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge ATF; Kentucky States Police Commissioner Richard Sanders; and Chief Wayne Bird, Williamsburg Police Department, jointly made the announcement. 

The investigation was conducted by the ATF London Office, the Kentucky State Police, and Williamsburg Police Department.  The United States is represented by Assistant United States Attorney Jenna E. Reed.    

An indictment by a grand jury is an accusation only, and individuals charged in an indictment are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

– END –

RALEIGH– Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge James C. Dever, III, sentenced JERMILL BLACKNALL,31, of Henderson, North Carolina, to 81 months’ imprisonment, followed by 5 years of supervised released. 

On June 6, 2019, BLACKNALL, pled guilty to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.  On January 21 and 28, 2018, officers of the Henderson Police Department (HPD) conducted controlled purchases of heroin using a confidential informant from BLACKNALL’S residence.  Subsequently, a search warrant was executed at that location where officers recovered a loaded assault rifle with two extended magazines and a 50-round magazine “drum.”  HPD also found raw heroin, a blender with heroin residue, digital scales, and packaging materials. 

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.  Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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 is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina.  This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement.

The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Henderson Police Department.  Assistant United States Attorney Robert J. Dodson prosecuted the case for the government.

     TUCSON, Ariz. – Last week, Ricardo Alberto Ruiz Pelayo, 24, of Nogales, Sonora, Mexico, was sentenced by Senior U.S. District Judge Raner C. Collinsto 30 months in prison followed by three years’ supervised release. Ruiz Pelayo previously pleaded guilty to an indictment charging one count of unlawful smuggling goods from the United States.

     On September 13, 2018, Ruiz Pelayo attempted to cross from Nogales, Arizona into Nogales, Sonora via the Mariposa port of entry.  An inspection of his vehicle located three AR-15 style assault rifles and two Glock handguns in addition to three magazine clips.  Although he was residing lawfully in the U.S. at the time, he will be deported to Mexico upon completion of his prison sentence.

     The investigation in this case was conducted by ICE/HSI Nogales agents and the prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.

Gulfport, Miss – William Lance Chaney, 27, of Biloxi, was sentenced yesterday by U.S. District Judge Sul Ozerden to 63 months in prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Chaney was also ordered to pay a $5,000 fine.    

During the course of an investigation, the Bureau of Alcohol Tobacco Firearms and Explosives discovered that Chaney was buying and selling firearms to known felons and Simon City Royals gang members.  Agents determined that Chaney offered at least three firearms for sale in March, 2018.  Chaney has a previous conviction for possession with intent to distribute a controlled substance in Harrison County in 2010 and is pending trial on a new drug charge in Harrison County.  He was on parole with MDOC at the time of the federal charge. 

Chaney pled guilty before Judge Ozerden on May 31, 2019 to being a felon in possession of a firearm.

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.  It was prosecuted by Assistant United States Attorney Annette Williams.

United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on September 4, 2019, Kyle D. Sanderson (age: 19) of Kewaunee, Wisconsin, was sentenced to 60 months in federal prison by Chief District Judge William C. Griesbach. 

In April of 2018, the Department of Homeland Security was notified by a Canadian-based social media company that an individual known online as “Rp.Destiny” was sending pornographic images and videos of children to another user.  Based on that information local law enforcement sought a search warrant and were able to identify “Rp.Destiny” as Kyle D. Sanderson.

Further investigation revealed that Sanderson exchanged passcodes with another individual online.  These passcodes allowed them to access each other’s child pornography libraries utilizing a cloud storage application based in New Zealand.  In total, investigators located approximately 4,400 images or videos depicting pornography on Sanderson’s smart phone, many involving the abuse of toddlers and infants. 

At sentencing, Chief Judge Griesbach noted the serious nature of the crime and the need to send a message of deterrence to both Sanderson and the community.  Chief Judge Griesbach also ordered Sanderson to spend 5 years on supervised release after his discharge from federal prison. Sanderson also will have to register as a sex offender.

This case was investigated by the Department of Homeland Security, Homeland Security Investigations, and the Wisconsin Department of Justice, Division of Criminal Investigations, with the assistance of the Kewaunee County Sheriff’s Office and the City of Kewaunee Police Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. 

#    #    #    #

DENVER – United States Attorney Jason R. Dunn announces that Pueblo business owner Mary Catherine Grasmick pled guilty to falsifying records with the intent to obstruct a federal investigation.  The plea was accepted by U.S. District Court Judge Daniel D. Domenico yesterday in United States District Court in Denver.  Sentencing is scheduled for December 17, 2019.

In addition to the guilty plea in the criminal case, Ms. Grasmick and her company MASS Service and Supply, LLC also agreed to pay a combined $500,000 to settle civil allegations that they made false statements to the Small Business Administration in connection with government contracts awarded to MASS under the SBA’s Historically Underutilized Business Zone program (“HUBZone”).

The HUBZone program provides federal contracting assistance to qualified small businesses located in historically underutilized business zones.  One of the requirements to qualify is that at least 35 percent of a business’s employees must reside in a HUBZone.  If a business qualifies, it’s eligible to bid on contracts specifically set aside for HUBZone businesses and gets a price preference when bidding on federal contracts subject to open competition.  In order to remain in the HUBZone program, a small business must apply for recertification by the Small Business Administration every three years. 

As part of the civil settlement, MASS and Ms. Grasmick acknowledged that between 2009 and 2012, MASS engaged in a scheme to deceive the SBA with the intent to influence the SBA’s effort to determine if MASS was eligible to continue participating in the HUBZone program.  Ms. Grasmick directed the scheme, created false documents, and allowed others to create false documents.  MASS falsely claimed that some of its employees resided in HUBZones when in fact those employees lived elsewhere in non-HUBZone areas.  During that same period, MASS applied for and was awarded a HUBZone set aside contract and a federal contract on which MASS benefited from the HUBZone program’s pricing preference.

The Small Business Administration decertified MASS from the HUBZone program in 2012.  The government then conducted an investigation into MASS’s previous representations to the Small Business Association.  During the course of that investigation, a special agent of the Defense Criminal Investigative Service requested that MASS provide information relating to MASS’s employees and their HUBZone residency status.  According to the facts contained in the plea agreement, Ms. Grasmick caused spreadsheets with false information to be created and sent to the special agent.  Ms. Grasmick knew that information in the spreadsheets was false and that the spreadsheets contained false entries, but she intentionally submitted the spreadsheets to the special agent with the intent to impede and obstruct the government’s investigation.

 “Obstructing a federal investigation is a crime,” said United States Attorney Jason R. Dunn.   “Getting to the truth matters in every case.  We are grateful that our prosecutors and excellent law enforcement partners work tirelessly to get to the truth in every investigation -- especially those that concern how our taxpayer dollars are spent.”

“Individuals that provide false information to gain access to SBA’s HUBZone Program harm eligible small businesses and undermine economic development in HUBZone areas,” said Inspector General Hannibal ‘Mike’ Ware.  “OIG will continue to aggressively pursue individuals that undermine Americans’ confidence in federal contracting programs designed to assist small businesses.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication to pursuing justice.”

 "Today's outcome is a clear example of the continued dedication by the U.S. Army's Criminal Investigation Command's Major Procurement Fraud Unit (MPFU)  and our law enforcement partners who work diligently every single day to root out fraud and criminal deception," said Frank Robey, Director of MPFU.  "Our reach and capabilities are far and wide."

"This case demonstrates the commitment of the Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue those who attempt defraud the United States Government and the Department of Defense," said Michael Mentavlos, Special Agent-in-Charge of the DCIS Southwest Field Office.  "This type of criminal activity undermines the integrity of the Small Business Program and demonstrates the commitment of DCIS and our investigative partners in holding those accountable for their actions."

The United States Attorney’s office thanks the Defense Criminal Investigative Service, the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, the Air Force Office of Special Investigations, the Department of Defense Office of Inspector General, the U.S. General Services Administration Office of the Inspector General, the SBA Office of Inspector General, and the Defense Contract Audit Agency for their diligent work on this investigation.

Assistant United States Attorney Bryan Fields is prosecuting the criminal case.  Assistant United States Attorney Jasand Mock handled the civil investigation.

Case No. 19-cr-00308

####

Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews

Sign up for news releases USACO.PublicAffairs@usdoj.gov

St. Louis, MO – William Miller, 54, of Richmond Heights, was sentenced to 15 months and three years supervised release for aiding and abetting former St. Louis County Executive Steve Stenger’s honest services wire fraud/bribery scheme.  Miller appeared in front of U.S. District Court Judge Rodney W. Sippel. 

According to court documents and in Court statements, Miller was hired as Chief of Staff by then County Executive Stenger during December, 2017, and was responsible for primarily assisting Stenger in managing the day to day operations of St. Louis County Government, and supervising Stenger’s Executive Staff.  Stenger also appointed Miller to the Board of the St. Louis Economic Development Partnership during 2018.  Stenger pled guilty on May 3, 2019 to 3 counts of honest services mail fraud/bribery relative to his scheme to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services through bribery and the concealment of material information.  The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from individuals and their companies in exchange for favorable official action, including the awarding of County contracts and grants, and for individuals and their companies to enrich themselves and their companies by secretly obtaining favorable action for themselves and for their companies, through corrupt means. 

The charge against Miller relates to his aiding and abetting Stenger’s criminal scheme, having taken official action to ensure that “Company One” and its principal owner obtained a 2019 state lobbying contract valued at approximately $200,000 from the St. Louis Economic Development Partnership.  In aiding and abetting Stenger’s criminal scheme, Miller communicated with, and personally met with Sheila Sweeney, then the CEO of the St. Louis Economic Development Partnership, in order to persuade and ensure that Sweeney and the Partnership Board, of which Miller was a member, awarded the lobbying contract to Company One, over a second lobbying firm which had also bid on the lobbying contract.  In taking such official action in aid of Stenger’s criminal scheme, Miller deprived the citizens of St. Louis County of their right to his honest services as the County’s Chief of Staff and as a member of the Board of the St. Louis Economic Development Partnership.  Throughout his tenure as Chief of Staff, Miller actively participated in and aided and abetted Stenger’s criminal scheme relative to a number of Stenger’s political donors in order to maintain his position as Chief of Staff within Stenger’s administration.

The Federal Bureau of Investigation and the Postal Inspection Service are investigating this case with the assistance of the Internal Revenue Service Criminal Investigations.  Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.

LEXINGTON, Ky. – A federal grand jury sitting in Lexington has charged four men for their involvement in a kidnapping that resulted in the deaths of two Lexington men.  Rosario Diaz Barraza, 29, Ramon Camacho Zepeda, 51, Josė Felix Tlatenchi, 37, and Tomás Tlatenchi, 37, were each indicted Thursday for offenses related to the kidnapping and homicide of Josė Olascoaga, 29, and Marco Antonio Tunai Ortiz, 27, both of Lexington.  

The grand jury charged all four defendants with one count of conspiracy to commit kidnapping that resulted in death, and one count of interstate transportation of stolen vehicles.  The indictment alleges that the charged offenses occurred on or about September 11, 2017, at a business located on Blue Sky Parkway in Lexington.  The victims were discovered on September 14, 2017, in the trunk of a Volkswagen Jetta at the Blue Sky Parkway crime scene.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Daniel Dodds, Acting Special Agent in Charge, DEA Louisville; and Lawrence Weathers, Chief of Police, Lexington Division of Police, jointly announced the indictment.  Assistant United States Attorney Todd Bradbury presented the indictment to the grand jury.

All four defendants are scheduled to appear in federal court, for their arraignment on the charges, on September 10, 2019 at 2:30 p.m.  Each defendant faces a maximum sentence of life imprisonment.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the United States Sentencing Guidelines and applicable federal statutes.

An indictment is an accusation only. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 – END –

HAMMOND- The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II and the Assistant Attorney General for the Environment and Natural Resources Division, Jeffrey Bossart Clark, announce that Kenneth Morrison, age 69, of Whiting, Indiana, was sentenced before United States District Court Judge Philip P. Simon on September 5, 2019.  Morrison was sentenced to 24 months imprisonment, 2 years supervised release, and ordered to pay over $54,000 in restitution to the City of Hammond.

Morrison was found guilty of interstate transportation of stolen property.  According to documents and testimony in this case, Morrison was convicted of stealing the Monon Bridge, located in Hammond, Indiana, and transporting the stolen metal parts across state lines, which he sold those metal parts for his personal benefit.  The former bridge had spanned the Grand Calumet River.  Morrison’s sentence was enhanced due to the eligibility of the bridge for the National Register of Historic Places.

The case was the result of an investigation by the U.S. Environmental Protection Agency-Criminal Investigation Division, U.S. Environmental Protection Agency-Office of Inspector General, Environmental and the U.S Coast Guard Criminal Investigative Service with the assistance of the Indiana Department of Natural Resources and the Indiana Department of Environmental Management.  This case was prosecuted by Trial Attorney Richard J. Powers, U.S. Department of Justice, Environmental Crimes Section and Assistant United States Attorney Toi Denise Houston.

###

HOUSTON – A 23-year-old El Salvadorian citizen has been ordered to federal prison for his role in a horrific gang slaying – the murder of a teenager in the Sam Houston National Forest in 2013, announced U.S. Attorney Ryan K. Patrick. Jose Leonel Bonilla-Romero aka Jose Tupapa, who resided in Houston, pleaded guilty April 19, 2019.

Today, U.S. District Judge Ewing Werlein Jr. handed Bonilla-Romero a 460-month term of imprisonment and ordered him to pay $13,000 in restitution. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. If that occurs, the court ordered he must remain outside the country unless lawfully allowed to return. 

At the hearing, evidence established the crime was unusually heinous, cruel and degrading. The court also heard Bonilla-Romero’s conduct in detention was clearly inconsistent with acceptance of responsibility. He has continued his allegiance to the MS-13 gang and continued the use of gang signs.

The victim’s family also spoke today, mentioning how they took in Bonilla-Romero and let him share a room with the victim. They commented that they had given Bonilla-Romero support for two weeks, allowing him to share clothes with their son and giving him food. The victim’s father asked Bonilla-Romero to repent and accept God. As the judge pronounced the sentence, the victim’s mother wept in back of courtroom.  

In handing down the lengthy prison term, Judge Werlein noted Bonilla-Romero was the victim’s friend. However, he supplied him with alcohol and coerced him to come to the federal land in Huntsville, knowing he was going to be killed. The court further noted Bonilla-Romero even struck the first blow. He took a metal baseball bat, concealing it from the victim, and then hid behind him, rushed him and hit him with such force that he fractured his skull. 

At the time of his plea, Bonilla-Romero admitted to aiding and abetting two others in the murder of the 16-year-old victim Sept. 22, 2013.   

Those others - Cristian Alexander Zamora aka Christian Zamora, Alex or Pollo, 28, and Ricardo Leonel Campos Lara aka La Muerte, 24, both also of El Salvador, who resided in Huntsville and Houston, respectively -  previously pleaded guilty and are currently serving their federal prison sentences of 420 months each.

At the time of Bonilla-Romero’s hearing, the court heard that when officers found the mutilated victim’s body they observed gaping wounds on his knees and ankles with his head nearly severed from his body. The investigation led police to Zamora who ultimately confessed his role in the crime, implicating Romero and Lara. All three admitted to being members of the transnational MS-13 gang. They explained that a gang leader had ordered them to kill the victim, because he had supposedly cooperated with police in El Salvador, leading to the arrests of several MS-13 gang members. 

After Bonilla-Romero struck the first blow, the other two butchered the victim’s body with machetes. 

The medical examiner noted that the victim suffered deep cutting and chopping wounds, some all the way to the spinal cord with others causing partial decapitation.

Bonilla-Romero has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in near future.

The FBI, Houston Police Department, Texas Rangers, Walker County Sheriff’s Office and the U.S. Forest Service conducted the investigation. Assistant U.S. Attorneys Mark E. Donnelly and Casey MacDonald prosecuted the case.

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

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pablo Rentas-Torres, 35, and Jesus Fernandez, 25, both of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, quantities of fentanyl, cocaine and crack cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.

Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that the defendants were members of a drug trafficking organization led by co-defendant Jose Casado. The organization distributed large quantities of fentanyl, cocaine and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester between December 2017 and May 15, 2019.

Jose Casado would obtain bulk quantities of fentanyl, heroin and crack cocaine, then he and other members of the conspiracy would “bag-up” or package the various substances to be sold to individual drug users. Drug users would contact Casado directly via cellular phone to order quantities of drugs and Casado would then routinely direct other members of the conspiracy, including the defendants, to obtain a particular quantity of drugs from the Casado organization’s drug stash, and deliver it to the customer at a pre-arranged location. The drug runners then met with the customer and provided the drugs in exchange for cash. Casado or another member of the organization would collect the proceeds of the drugs sales from the drug runners periodically throughout the day. Between December 2017 and April of 2019, investigators conducted 13 undercover purchases from the organization.

On March 14, 2019, a search warrant was executed at the Clifford Avenue drug house. Members of the Drug Enforcement Administration and Rochester Police Department recovered 18 baggies of fentanyl, nine baggies of powder cocaine, nine baggies of crack cocaine, numerous materials used to package controlled substances, 1,800 rounds of .22 caliber ammunition, and 50 shotgun shells. On May 15, 2019, a second search warrant was executed at the Clifford Avenue residence where investigators recovered a .22 caliber pistol.

Rentas-Torres and Fernandez were arrested along with five other defendants, including Jose Casado. A total of three have been convicted. Charges remain pending against Jose Casado, Whitney Casado, Ricardo Casado and Gamalliett Rosario-Martinez. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.  

The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division and the Rochester Police Department, under the direction of Chief La’Ron Singletary.

Rentas-Torres and Fernandez are scheduled to be sentenced on December 13, 2019, at 11:00 a.m. and 11:30 a.m. respectively, both before Judge Geraci.

# # # #

ALEXANDRIA, Va. – Two Alexandria men were sentenced today to two and a half years in prison for distribution of heroin and pure methamphetamine.

According to court documents, Jose Castro, 23, and Martin Vitela, 25, assisted co-conspirator Fabian Rodriguez Sandoval in the transportation and distribution of kilograms of heroin and pure methamphetamines from Woodbridge to Pennsylvania. Castro, Vitela and Sandoval received the illegal narcotics from couriers traveling from California before distributing the drugs along the east coast.

Sandoval was sentenced to six years in prison on August 23 for his role in the offense.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Mark R. Herring, Attorney General of Virginia, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney and Virginia Assistant Attorney General Lena Munasifi and Assistant U.S. Attorney Michael P. Ben’Ary prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-169.

     TUCSON, Ariz. – Last week, Ricardo Alberto Ruiz Pelayo, 24, of Nogales, Sonora, Mexico, was sentenced by Senior U.S. District Judge Raner C. Collinsto 30 months in prison followed by three years’ supervised release. Ruiz Pelayo previously pleaded guilty to an indictment charging one count of unlawful smuggling goods from the United States.

     On September 13, 2018, Ruiz Pelayo attempted to cross from Nogales, Arizona into Nogales, Sonora via the Mariposa port of entry.  An inspection of his vehicle located three AR-15 style assault rifles and two Glock handguns in addition to three magazine clips.  Although he was residing lawfully in the U.S. at the time, he will be deported to Mexico upon completion of his prison sentence.

     The investigation in this case was conducted by ICE/HSI Nogales agents and the prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.