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.

NEWARK, N.J. – A former broker and investment adviser was sentenced today to 70 months in prison for stealing millions of dollars from his clients in order to pay for personal expenses, U.S. Attorney Craig Carpenito announced. 

Gary Basralian, 72, of Springfield, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of wire fraud and one count of investment adviser fraud. Judge Arleo imposed the sentence today in Newark federal court.

According to documents filed in the case and statements made in court:

Basralian was a registered broker who provided investment advisory services to clients and received compensation for advising them about investing in, purchasing, or selling securities. From 1989 until December 2017, he was registered with the Financial Industry Regulatory Authority (FINRA), or its predecessors, as working at “Securities Firm A,” a registered investment adviser and broker-dealer with its principal place of business in Jersey City, New Jersey. Securities Firm A provided a broker-dealer platform for more than 2,000 independent financial advisers across the United States.

From July 2007 through November 2017, Basralian defrauded his clients by falsely telling them that he would invest their money in securities and other investments when, in fact, he misappropriated those funds and used them for his own personal expenditures – including payments on a BMW automobile and tens of thousands of dollars in credit card bills.

In one instance Basralian wired money from at least one victim client’s investment account at Securities Firm A to various accounts that he controlled and used the proceeds for his own benefit. When the victim asked why the account had diminished in value, Basralian sent the victim a phony spreadsheet showing that the money was being invested as loans to various companies and would be paid back with interest. Basralian admitted stealing at least $2 million.

In addition to the prison term, Judge Arleo sentenced Basralian to three years of supervised release.

On May 22, 2018, the N.J. Bureau of Securities in the Office of the N.J. Attorney General issued a summary revocation order against Basralian that revoked his agent and investment adviser representative registrations.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the N.J. Bureau of Securities, under the direction of Bureau Chief Christopher Gerold, for its assistance.

The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office’s Economic Crimes Unit.

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

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

Christian Alvarado Morales; Anderson Garces Lopez. Conspiracy to Transfer Identification Documents; Aggravated Identity Theft; Possession With Intent to Use and Transfer Five or More Documents and Authentication Features; Unlawful Reentry of Removed Alien. Alvarado, 30, and Garces, 29, both of Tulsa, are charged with conspiring to create and sell fraudulent identification cards, including falsified U.S. Permanent Resident Cards and U.S. Social Security Cards. Garces is also charged with two counts of aggravated identity theft. Alvarado is also charged with three counts of aggravated  identity theft, and he is charged with possession with intent to transfer five or more falsified identification documents. Alvarado is further charged with reentry of a removed alien, having returned to the United States unlawfully after being deported March 25, 2008, at or near Laredo, Texas. Immigration and Customs Enforcement’s Homeland Security Investigations and Enforcement and Removal Operations are the investigative agencies.

Ivan Arroyo. Interstate Communication With Intent to Extort. Arroyo, 27, of Broken Arrow, is charged with extortion using social media. Arroyo allegedly threatened to harm the reputation of another individual if the victim did not comply with his demands. The Cherokee Nation Marshal Service and FBI are the investigative Agencies.

Paul B. Bowker. Failure to Account for and Pay Over Withholding and FICA (Social Security and Medicare) Taxes (7 counts); Bank Fraud (100 counts). Bowker, 56, of Lancashire, United Kingdom, was chief financial officer and vice president for finance at a company that maintained offices in the Northern District of Oklahoma. While working in this position, Bowker was living in Tulsa. Per United States tax law, the company was responsible for withholding income taxes and FICA taxes from employees’ paychecks and for paying the monies over to the U.S. Internal Revenue Service (IRS). Bowker is charged with failure to collect and pay more than 3.6 million in income and FICA taxes from April 2014 through January 2016. In addition, Bowker is charged with 100 counts of bank fraud. As chief financial officer, Bowker was entrusted with a company credit card and was responsible for paying the monthly credit card bill by authorizing electronic transfer of funds from the company’s checking account at Mabrey Bank, in Bixby, to the company’s Visa account. From January 2014 through December 2015, Bowker is alleged to have fraudulently used the Visa credit card to make $130,000 worth of purchases for his own benefit then paying for those charges with the company’s checking account at Mabrey Bank. The IRS Criminal Investigation Division and FBI are the investigative agencies.

Neville David Ewell and Larry Latwan Walker. Possession of Cocaine With Intent to Distribute; Maintain Drug-Involved Premises; Felon in Possession of Firearms and Ammunition; Destruction or Removal of Property to Prevent Seizure; Unlawful User of Controlled Substances in Possession of Firearm and Ammunition; Drug Conspiracy; Possession of Methamphetamine With Intent to Distribute; Possession of Firearm in Furtherance of Drug Trafficking Crimes; and Destruction or Removal of Property to Prevent Seizure (Superseding Indictment).  Ewell, 45, of Broken Arrow, is charged with possessing with intent to distribute cocaine and maintaining a drug-involved premises. Ewell is alleged to have used and maintained a premises in Tulsa for the purpose of manufacturing, distributing, and using cocaine. He is also charged with being a felon in possession of a Pietro Beretta 9x19mm caliber semi-automatic pistol and ammunition. Walker, 29, of Tulsa, is charged with being a felon in possession of a Smith & Wesson .40 caliber semi-automatic pistol and ammunition; and he is charged with possessing the Smith & Wesson pistol knowing he was an unlawful user of a controlled substance.  Walker is further charged with possessing the Smith & Wesson pistol in furtherance of drug trafficking crimes. Ewell and Walker are both charged with conspiring to distribute and to possess with intent to distribute methamphetamine. Both men are further charged with possessing methamphetamine with intent to distribute; and they are charged with destroying, damaging, or removing property to prevent its seizure by law enforcement. The Tulsa Police Department, FBI, and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Richard Blake Holbrook. Attempted Coercion and Enticement of a Minor. Holbrook, 23, of Bristow, is charged with attempting to persuade and entice an individual whom he believed to be a minor to engage in sexual activity.  The Bristow Police Department is the investigative agency.

Edward Leiva-Alvarez. Drug Conspiracy. Leiva-Alvarez, 37, residing at the Oklahoma State Penitentiary in McAlester, is charged with conspiring to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. The Drug Enforcement Administration, FBI, Oklahoma Highway Patrol, Grand River Dam Authority and Miami Police Department are the investigative agencies.

Early Livestock. Failure to Register as a Sex Offender. Livestock, 48, of Tulsa, is charged with failing to register as a sex offender since July 2, 2018.  The U.S. Marshals Service and Tulsa Police Department are the investigative agencies.

Clinton Eugene Rose. Felon in Possession of a Firearm. Rose, 43, of Cleveland, is charged with being a felon in possession of a Hi-Point .45ACP caliber semi-automatic pistol. According to the Indictment, Rose has previously been convicted of 24 different felonies. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative authorities.

Lucas Shane Vann. Sexual Exploitation of a Child (Superseding Indictment).  Vann, 19, of Salina, is charged with knowingly producing an image of a minor engaging in sexually explicit conduct. The Delaware County Sheriff’s Office and FBI are the investigative agencies.

Jalil Charles Edward West. Felon in Possession of Firearm and Ammunition. West, 30, of Tulsa, is charged with being a felon in possession of a Zastava 7.62X39mm semi-automatic pistol and 70 rounds of associated ammunition. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

A Youngstown physician was indicted in federal court on sex trafficking charges involving minors as young as 12 years old.

Albert Aiad-Toss, 52, was indicted on four counts of sex trafficking of a minor and one count of production of child pornography.

Aiad-Toss is allegedly to have used force, threats of force, fraud or coercion to cause three minor victims to engage in commercial sex acts at various points in June 2019. The victims ranged in age from 12 to 14 years old, according to the indictment.

Aiad-Toss is also alleged to have induced a 15-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. This took place on June 29, 2019, according to the indictment.

“This defendant is accused of sexually assaulting children as young as 12 years old,” said U.S. Attorney Justin Herdman. “Those who prey upon children and other vulnerable victims will be held accountable for their actions.”

“The abuse of a child is despicable and incomprehensible. Individuals such as Dr. Toss who allegedly choose to engage in sex acts with minors and sharing sexually explicit photos of children will face a court of law,” said FBI Special Agent Eric B. Smith. “Law enforcement will continue our unceasing efforts to protect our most precious resource, our children."

“The charges brought against the defendant, Albert Aiad-Toss, are the product of the cooperation between Ashland law enforcement agencies, my office and the federal authorities,” said Ashland County Prosecutor Christopher Tunnell. “This case is prime an example of what happens when all the relevant criminal justice agencies act with the singular focus of keeping our children safe from predatory exploitation.”   

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.  In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case was investigated by the Federal Bureau of Investigation, the Ashland Police Department and the Mansfield Police Department. It is being prosecuted by Assistant U.S. Attorney Ranya Elzein and First Assistant U.S. Attorney Bridget M. Brennan with the assistance of Ashland County Prosecutor Christopher Tunnell.

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

John Shedd and Terry Tooley Filled Controlled Substance Prescriptions They Knew Were Written For No Legitimate Medical Purpose and Fraudulently Billed Health Insurers

          GRAND RAPIDS, MICHIGAN— U.S. Attorney Andrew Birge announced today that John Shedd, 71, of Albion, Michigan, and Terry Tooley, 64, of Spring Arbor, Michigan, were each sentenced to 15 months in prison on federal drug trafficking and healthcare fraud charges. Chief Judge Robert J. Jonker, who imposed the sentences, also ordered them to pay more than $465,000 in restitution to Medicare, Medicaid, and the other health insurers they defrauded. He also imposed a two-year term of supervised release and ordered them never to obtain a pharmacy license or practice again as a pharmacist. Separately, Shedd and Tooley forfeited $1.3 million in cash to the United States.

          Shedd and Tooley, who previously owned Parks Drug Store in Albion, admitted they filled prescriptions written by former Albion doctor Horace J. Davis and dispensed 50,000 dosage units of methadone, even though they knew those prescriptions had been written for no legitimate medical purpose. Davis was convicted in 2017 of federal drug trafficking crimes and healthcare fraud. Shedd and Tooley also admitted they billed Medicare, Medicaid, and Blue Cross Blue Shield of Michigan more than $465,000 for prescriptions that were never written, and forged documents in connection with their false healthcare billings.

          "Shedd and Tooley contributed to the opioid epidemic, but thanks to the good work of our law enforcement partners, they’ll spend time in prison and never work as pharmacists again," said U.S. Attorney Birge. "They put lives in danger by filling prescriptions they knew they shouldn’t have. Now they’ll pay the price," he said.

          "It is a DEA priority to aggressively pursue healthcare professionals who violate our trust and illegally distribute controlled prescription drugs," said Special Agent in Charge Keith Martin, of the DEA Detroit Field Division. "Outcomes like these demonstrate the commitment federal, state and local law enforcement officials have to protect our communities during a very serious public health crisis."

          The investigation was conducted by the Albion Department of Public Safety, Calhoun County Sheriff, DEA, and IRS Criminal Investigation. Assistant United States Attorney Clay Stiffler prosecuted the case.

END

           CONCORD, N.H. – United States Attorney Scott W. Murray announced that on Thursday a federal jury found Nelson Alexander Fuentes-Lopez, 32, a citizen of Guatemala, guilty of reentering the United States after having been previously deported.            

          According to trial exhibits and witness testimony during the two-day jury trial, Fuentes-Lopez was found in Seabrook in May of this year when he was a passenger in a vehicle that was stopped for speeding.

          Fuentes-Lopez was subsequently arrested by U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations Officers when it was discovered that he had been deported in July of 2014 after illegally crossing the border in Texas. 

          Fuentes-Lopez was convicted of one count of reentry after deportation.  He is scheduled to be sentenced on December 17, 2019.  U.S. Immigration and customers Enforcement will seek his removal following the service of his sentence.

          “Those who have been deported from the United States must follow the law if they wish to return to this country,” said U.S. Attorney Murray.  “If they choose to return to the United States unlawfully, they are subject to federal prosecution.”

          “Illegally re-entering the United States after being previously removed from the U.S. is a serious violation of our immigration law”, said Marcos D. Charles, acting Field Office Director U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations, Boston. “When an individual violates these laws, that person shows contempt for our long established immigration system. These actions also disrespect the hundreds of thousands of immigrants who have followed the lawful process of entry into our country.”                          

          This matter was investigated by the Department of Homeland Security, Immigration and Customs Enforcement.  Assistance also was provided by United States Border Patrol and United States Citizenship and Immigration Services. The case is being prosecuted by Assistant U.S. Attorney Helen White Fitzgibbon.

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            WASHINGTON – Antoine Little, 26, of Washington, D.C., was sentenced yesterday to 17 years in prison for the 2018 murder of Southeast resident Curtis Barnum, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Little pled guilty in April, 2019, in the Superior Court of the District of Columbia, to second-degree murder while armed. He was sentenced by the Honorable Danya Dayson on September 6, 2019, to 17 years in prison, to be followed by 5 years of supervised release. 

            According to the government’s evidence, on October 9, 2018, the defendant, Antoine Little, approached the Valero gas station at 3710 Minnesota Avenue, Northeast, where he encountered the decedent, Curtis Barnum, who had stopped to put gas in his white pickup truck.  After shouting at the decedent, the defendant walked over to the decedent’s pickup truck and entered it through the passenger side door. Within moments, the defendant stabbed the decedent in the chest with a knife.  The defendant then opened the driver’s side door and pushed the decedent out of the truck. While the decedent lay on the ground, the defendant rifled through the decedent’s pockets and robbed the decedent of some of his belongings.  The defendant then kicked the decedent’s feet out of the truck, closed the driver’s side door, and fled the scene.

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Meridith McGarrity; Victim Advocates Karina Hernandez and Jennifer Allen; and Supervisory IT Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorney Gilead Light, who investigated and prosecuted the case.

John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a grand jury in New Haven returned an indictment yesterday charging DERON D. FREEMAN, 45, of Glastonbury, with two counts of filing false tax returns. 

As alleged in the indictment, Freeman is attorney who owns and operates The Law Offices of Deron Freeman in Hartford.  Freeman has practiced primarily in the areas of personal injury and criminal law.  In 2011 and 2012, Freeman filed false tax returns that understated his income and, in turn, his tax liability.

If convicted of the charges, Freeman faces a maximum term of imprisonment of three years on each count.

Freeman’s arraignment is scheduled for September 10 at 1:30 before U.S. Magistrate Judge William I. Garfinkel in Bridgeport.

The case is assigned to U.S. District Judge Victor A. Bolden.

U.S. Attorney Durham stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This investigation is being conducted by the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.

RICHMOND, Va. – A Norfolk man was sentenced today to 28 years in prison for committing a series of armed robberies in Petersburg, Henrico, and Richmond.

“Spencer, an armed criminal, used an AK-47 style long gun to rob and victimize, innocent, hard-working employees of small businesses in the Richmond area,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “His 28 year sentence reflects the seriousness of his despicable conduct, and thank God no one was killed during one of his brazen armed robberies. Spencer is a clear danger to the community, a threat to public safety, and the Eastern District is a safer place with him off of the streets. My thanks to the prosecutors and investigators for their commitment to this case and our Project Safe Neighborhoods mission of removing violent criminals from the community.”

According to court documents, Peonte Shamar Spencer, 39, armed himself with an AK-47 style long gun to rob three convenience stores and used a handgun to rob a bank. On Dec. 2, 2018, Spencer entered a Qwik Shop in Petersburg and demanded the register’s cash from the convenience store clerk while pointing an AK-47 style long gun at the clerk. Later that night, Spencer entered a Rite Aid in Henrico and once again brandished an AK-47 style long gun while demanding the store’s cash from its clerk. On Dec. 6, 2018, Spencer robbed a 48 Hour Convenience Store in Richmond using the same gun and similar tactics from the previous two robberies. During this robbery, Spencer threatened to shoot the store’s clerk. On Dec. 18, 2018, Spencer robbed the South State Bank in Richmond using a black starter pistol and fled with nearly $4,000 in a car driven by his girlfriend.

“The FBI and its partners will continue to aggressively investigate violent crimes such as the ones committed by Spencer,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office. “We are grateful for the partnership of the United States Attorney’s Office, and its successful prosecution of this case which removed a violent criminal from the community.”

Law enforcement officers were able to locate the vehicle and apprehend Spencer and his girlfriend along with the bank’s stolen money, the black starter pistol, and an AK-47 with additional magazines. Spencer also admitted to law enforcement that he was involved in two previous bank robberies of the same bank earlier that year.

The 28 year sentence will be served consecutively to a sentence of eight years that Spencer received in Richmond Circuit Court.

This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Janet Jin Ah Lee and Angela Mastandrea-Miller 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. 3:19-cr-12.

BILLINGS—Former U.S. Fish and Wildlife Service employee Shawn Thomas Conrad was sentenced today to 84 months in prison followed by 20 years supervised release, U.S. Attorney Kurt Alme said. Conrad also was ordered to pay $15,000 restitution, $5,000 Justice for Victims of Trafficking Act assessment, and $100 special assessment.

Conrad, 49, of Billings, pleaded guilty in May to possession of child pornography.

U.S. District Judge Susan P. Watters presided.

“Exploiting children for sexual gratification is a serious crime and will not be tolerated. Every person who possesses child pornography re-injures the victim,” Attorney Alme said. “This sentence sends a strong message that whoever commits child pornography crimes will be prosecuted to the fullest extent of the law.  I want to thank Assistant U. S. Attorney Cyndee Peterson, the Internet Crimes Against Children Task Force, the FBI, the Billings Police Department and the U.S. Fish and Wildlife Service for their good work in this case.”

“Child pornography is a crime that leaves profound and long-lasting effects on the victims,” said Paul Haertel, Special Agent in Charge of the FBI’s Salt Lake City Field Office.  “The FBI would like to thank the Internet Crimes Against Children Task Force, Billings Police Department and U.S. Fish and Wildlife Services for their assistance in bringing a child predator to justice.”

The prosecution said in court documents filed in the case that an investigation of Conrad, an agent for the U.S. Fish and Wildlife Service, for a child pornography crime that began in early August 2018 by the Billings Police Department, which is a member of the Montana Internet Crimes Against Children Task Force.   Having heard of the underlying police department investigation, Conrad’s supervisor went to Conrad’s home and seized an agency vehicle.  Conrad said his personal hard drive was in the vehicle and asked for the hard drive. The supervisor did not return it. Conrad asked his supervisor again that evening for his hard drive.

The USFWS obtained a search warrant for the hard drive, which was examined. The BPD also served a search warrant at Conrad’s residence and seized a laptop computer, which was examined. Both the hard drive and laptop contained child porn images of children engaged in sexually explicit conduct.

Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Montana Internet Crimes Against Children Task Force, FBI, BPD and USFWS.

The Office of the United States Attorney for the District of Vermont stated that Troy McIlwain, 31, of St. Albans, Vermont, was sentenced today for possession with intent to distribute cocaine base and violations of conditions of supervised release.  United States District Judge Christina Reiss sentenced McIlwain to 24 months based on the drug conviction, and 24 months based on the supervised release violation, for a total sentence of 48 months.  Judge Reiss also ordered that McIlwain serve a three-year period of supervised release upon his release from prison.

According to court records, McIlwain’s criminal history includes a 2013 federal conviction in Vermont for possession of firearms as a convicted felon.  He was placed on supervised release on April 13, 2018, after his release from a term of imprisonment in connection with a previous violation of release conditions.  The court issued a warrant for his arrest in June 2018 due to his non-compliance with release conditions.  On September 9, 2018, the Burlington Police Department encountered McIlwain as he was driving in Burlington and arrested him on the warrant.  During processing at the Chittenden Regional Correctional Facility later that night, corrections officers recovered from McIlwain’s pocket a plastic bag containing 36 baggies of cocaine base.  As a result, McIlwain was federally charged with possession with intent to distribute cocaine base. 

The government and McIlwain entered into a plea agreement in which McIlwain admitted to the cocaine possession and the violations of supervised release conditions.  The court accepted the parties’ agreement providing for a 48-month sentence and sentenced him accordingly.

The government was represented by First Assistant U.S. Attorney Kevin J. Doyle.  McIlwain was represented by Paul S. Volk, Esq.

PHILADELPHIA – United States Attorney William M. McSwain announced that Dino Paolucci, 41, of Mississauga, Ontario, entered a plea of guilty to four counts of securities fraud before United States District Judge Eduardo C. Robreno.

The charges resulted from the defendant’s participation in a scheme to manipulate the price and trading volume of the stocks of LiveWire Ergogenics (“LVVV”), YaFarm Technologies (“YFRM”), Resource Ventures (“REVI”), and Medical Cannabis Payment Solutions (“REFG”). This type of scheme is commonly referred to as a “pump-and-dump.”

During the course of the scheme, Paolucci, a stock promoter, worked with others to artificially increase the price and volume of the stocks through the use of false and misleading press releases, email blasts, radio advertisements and tweets, often in coordination with planned trading by other participants in the scheme. The misleading promotion in concert with planned trading was designed to control the price and volume of the stock. In order to hide their scheme from investors and regulators, Paolucci and his fellow schemers used offshore corporations and brokerage accounts, intermediaries, and even fake names, causing tens of millions of dollars of losses to investors while gaining millions in profits for themselves.

“Stock fraud is a danger to free markets and to individual investors, and our securities laws must be vigorously enforced to protect the public,” said U.S. Attorney McSwain. “Those who defraud investors and harm our securities markets will be tracked down and brought to justice, just as Paolucci was here.”

The case was investigated by the Federal Bureau of Investigations, with assistance from the Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorneys Patrick Murray and Judy Smith.

CHARLOTTE, N.C. – Two North Carolina members of the United Blood Nation (UBN or Bloods) street gang have pleaded guilty to Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving multiple murders. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’ Charlotte Field Office, made the announcement.

Tyquan Ramont Powell, aka Savage, 24, of Charlotte, North Carolina, and Lamonte Kentrell Lloyd, aka Murda Mo and Moo, 25, of Scotland Neck, North Carolina, both admitted their membership in the UBN and participation in the racketeering enterprise through acts involving murder and robbery.

According to court documents, Powell and Lloyd committed two murders and three attempted murders over the course of less than a month.  Powell and Lloyd committed the first murder in Scotland Neck, North Carolina, in January 2016 by shooting into a car with three occupants because they believed that one of the occupants was cooperating with law enforcement and intended to testify in a criminal case against a close associate of the defendants.  Bullets struck all three occupants and the intended target of the shooting was killed.  The Defendants then fled to, among other places, Charlotte, North Carolina, where they sought and received refuge and resources from UBN members and associates while attempting to evade arrest.

Also according to court documents, Powell and Lloyd committed murder in Gastonia, North Carolina, in February 2016.  The Defendants attempted to rob four victims using handguns. When the victims resisted the defendants’ robbery attempt, Powell fired his firearm and killed one of the victims.  Also in February 2016, according to court documents, Powell and Lloyd attempted to rob another victim.  Lloyd shot the victim in the back of the head, but the victim was effectively treated for his injuries at the hospital and lived. 

According to court documents and evidence presented at a May 2018 trial against the godfathers of the UBN, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993.  UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks.  Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star and the five-pointed crown.  UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.

Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders.  Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93.  UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies and wire fraud, among other forms of illegal racketeering activity. 

In May 2017, 83 members of the UBN were indicted in the Western District of North Carolina for crimes including RICO conspiracy.  Seventy-eight defendants have now either pleaded guilty or been convicted at trial due to this investigation, and 68 have been sentenced.  A jury convicted three top leaders of the UBN of racketeering conspiracy in May 2018, and one defendant was convicted of racketeering conspiracy and wire fraud conspiracy at trial in July 2019.  Seventy-four defendants have pleaded guilty in this investigation, including four who participated in the racketeering conspiracy by, among other crimes, committing a murder in July 2016 in Chapel Hill, North Carolina.

The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command and the New York Department of Corrections and Community Supervision, Office of Special Investigations. 

Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program.  OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Delroy Williams, Jr. age 32, of Baltimore, Maryland, to 135 months in federal prison, followed by five years of supervised release, for a conspiracy to distribute five kilograms or more of cocaine, and for possession with intent to distribute cocaine and marijuana.  Judge Hollander imposed the sentence on September 5, 2019. 

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.

“Drug traffickers must know that gun crime will lead to federal time, which has no parole—ever,” said United States Attorney Robert K. Hur.  “Delroy Williams did not heed that message and will now serve more than 11 years in federal prison.  We will continue to work with our law enforcement partners to remove those who would commit violence from our community.”

According to the testimony presented at his five-day trial, from at least October 2016 through December 12, 2016, Williams distributed cocaine and marijuana in the Baltimore area.  On the evening of December 12, 2016, Williams encountered an associate at a nightclub in Baltimore County.  Believing that the associate owed him money, Williams assaulted, robbed, and shot at the individual before ramming the victim’s car and then fleeing the scene.  Realizing that the associate knew where Williams lived, Williams took his drugs from his residence and took them to his girlfriend’s home in Glen Burnie, Maryland. 

Law enforcement executed a search warrant at the Glen Burnie residence the next day and recovered almost five kilograms of cocaine, several pounds of marijuana, and two guns from the house.  Witnesses testified that several more pounds of marijuana, more than $213,000 in cash, scales, and pistol ammunition were recovered from Williams’s truck. 

A federal jury convicted Williams on May 20, 2019.  Williams was originally scheduled for trial in November 2018, but fled and was a fugitive until his arrest on January 11, 2019.  Williams has been detained since that time. 

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.  Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

United States Attorney Robert K. Hur commended the DEA, the Baltimore County Police Department, and the Anne Arundel County Police Department for their work in the investigation, and thanked the FBI, the ATF, and the U.S. Marshals Service for their assistance.  Mr. Hur thanked Assistant U.S. Attorneys Zachary B. Stendig and John W. Sippel, Jr. who prosecuted the case.

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SACRAMENTO, Calif. — Today, U.S. District Judge William B. Shubb sentenced Stephen J. Dougan, 57, formerly of Granite Bay, now residing in Utah, to three years in prison and one year of supervised release for corruptly endeavoring to impede the due administration of the Internal Revenue Laws, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at trial, during an Internal Revenue Service audit of his 2006 and 2007 tax returns, Dougan made false statements, including falsely representing that he was redacting checks to protect client confidentiality when in fact, he also redacted his own name from checks he wrote to himself; withheld documents from the IRS; and provided false and misleading documents to the IRS that substantially underrepresented his income in 2006 and 2007. He also made false statements and provided false and misleading documents to the IRS in order to substantiate various business expenses he claimed on Schedule C of his 2006 tax return, including submitting a false advertising invoice and falsely claiming that his personal divorce attorney was his assistant or paralegal.

U.S. Attorney Scott stated: “This defendant is a lawyer who refused to obey the law. As determined by the trial judge and jury, he did not make an impulsive error in judgement, but rather his conduct was long-term, complex, and deliberate. This sentence reflects the discredit he brought to the legal profession.”

“The defendant used his legal knowledge and his lies to organize a complex scheme to hide over $1.4 million of income,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “When the IRS audited his tax returns, he concealed more than $650,000 in back taxes in an effort to obstruct the audit. Today’s sentencing sends a clear message that those involved in these types of schemes will be held accountable for their crimes.”

This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Michael M. Beckwith, Chi Soo Kim, Matthew D. Segal, Matthew M. Yelovich, and Amy S. Hitchcock prosecuted the case.

PIKEVILLE, Ky. - A South Carolina man admitted in federal court Friday that he knowingly produced and received child pornography.

Jonathan Edward Manigault, 34, pleaded guilty to one count of production of child pornography and one count of knowingly receiving child pornography, before U.S. District Judge Karen K. Caldwell.  

Manigault admitted he directed Christina B. Mitchell, of Pike County, to take photographs of a 3-year-old victim, engaging in sexually explicit conduct. Manigault provided Mitchell with specific, detailed instructions on what types of explicit photographs to produce and provide.  According to the plea agreement, Mitchell transmitted the photographs of the minor to Manigault using the Facebook Messenger application. After receipt, Manigualt had Mitchell agree to produce additional images of underage victims.

Manigault and Mitchell were indicted on October 24, 2018.

Mitchell pleaded guilty to two counts of producing child pornography on August 26, 2019. According to her plea agreement, Mitchell produced sexually explicit images of a 3-year-old and 8-year-old victims.

“Protecting children from this unconscionable conduct is of the utmost importance to all law enforcement,” said United States Attorney Robert M. Duncan, Jr. “The defendant’s guilty plea today, and his co-defendant’s guilty plea in August, ensure that they will not have the opportunity to victimize other innocent children. I commend the efforts of law enforcement for their work in removing these dangerous individuals from our streets.”   

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI Louisville Field Division, jointly announced the guilty plea.

The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed. 

Mitchell’s and Manigault’s sentencing hearings are scheduled for December 16, 2019, in Pikeville. Mitchell faces up to 60 years in prison and Manigault faces up to 50 years in prison.  Both defendants face a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement regarding recent allegations of sexual assault at the Beckley Veterans Affairs Medical Center (VAMC):

“My office has been made aware of the sexual assault allegations at the Beckley VAMC.  My office takes these allegations very seriously and is working closely with federal, state and local law enforcement agencies to ensure this matter is investigated thoroughly and quickly.”

Follow us on Twitter:SDWVNewsand USAttyStuart
 

 
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Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KIFANO JORDAN, a/k/a “Shotti,” was sentenced to 15 years in prison in connection with a robbery and a non-fatal shooting carried out as part of his participation in the Nine Trey Gangsta Bloods (“Nine Trey”).  JORDAN pled guilty on March 28, 2019, before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.

As alleged in the underlying Indictment and statements made in open court:

Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn.  Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business.  Members and associates of Nine Trey enriched themselves by committing robberies and selling drugs, such as heroin, fentanyl, furanly fentanyl, MDMA, dibutylone, and marijuana. 

JORDAN, a member of Nine Trey, pled guilty to one count of using and possessing a firearm in furtherance of a crime of violence, for an assault with a dangerous weapon that occurred in Manhattan on April 3, 2018; he also admitted to discharging a firearm in furtherance of a crime of violence for a shooting that occurred in Brooklyn on April 21, 2018.

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In addition to the prison term, JORDAN, 36, of Brooklyn, New York, was sentenced to 5 years of supervised release.   

Mr. Berman praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Michael Longyear, Jacob Warren, Jonathan Rebold, and Sebastian Swett are in charge of the prosecution.

Bailey Colletta, 26, a former police officer with the St. Louis Metropolitan Police Department (SLMPD) pleaded guilty today in federal court in the Eastern District of Missouri to one count of making false statements to a federal grand jury about her knowledge of the arrest and assault of a fellow SLMPD police officer, who was working undercover in downtown St. Louis during protests following the 2017 acquittal of a former SLMPD officer on a state murder charge. Colletta’s co-defendants, SLMPD officers Dustin Boone, Randy Hays, and Christopher Myers, remain under indictment on federal charges related to the assault and subsequent cover-up. They have pleaded not guilty.

According to the plea agreement, in addition to facing a maximum of five years in prison, Colletta must forfeit her law enforcement certification. A sentencing date has been set for December 13, 2019. 

The trial of Boone, Hayes, and Myers is set for Dec. 2, 2019.

This case is being investigated by the St. Louis Division of the FBI and is being prosecuted by Assistant United States Attorney Reginald Harris of the U.S. Attorney’s Office and Special Litigation Counsel Fara Gold and Trial Attorney Janea Lamar of the Department of Justice Civil Rights Division Criminal Section.

John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL VADAKIN, 28, of Derby, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession of child pornography.

According to court documents and statements made in court, Vadakin was arrested on December 13, 2018, after an investigation revealed that he had used the Kik smartphone application to possess and share videos of child pornography.  Forensic analysis of a tablet seized during a search of Vadakin’s residence revealed additional images of child pornography.

Judge Arterton scheduled sentencing for December 4, 2019, at which time Vadakin faces a maximum term of imprisonment of 20 years.

Vadakin is released on a $50,000 bond pending sentencing.

This investigation is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with assistance from the Derby Police Department.  The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.