ALBANY, NEW YORK – Michael T. Mann, age 49, of Saratoga County, New York, appeared in federal court today on a criminal complaint charging him with committing a $70 million bank fraud.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

According to the complaint (copy attached), Mann fraudulently obtained at least $70 million in loans from banks and other financial institutions.  He created companies that had no purpose other than to be used in the fraud; fraudulently represented to banks and financing companies that his fake businesses had certain receivables that they did not have; and obtained loans and lines of credit by borrowing against these non-existent receivables.  Mann began the fraudulent scheme in 2010 or 2011.

Mann operates MyPayrollHr, based in Clifton Park, New York. 

Until this month, MyPayrollHR processed payroll and tax payments for approximately 1,000 small-business clients located across the country. 

On September 5, 2019, MyPayrollHR suddenly ceased operations after Mann’s banks froze his accounts, suspecting him of fraud.  This account freeze affected MyPayrollHR’s clients because, as part of the fraudulent scheme, Mann diverted clients’ payroll payments to a bank account he controlled.

The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Mann appeared today before United States Magistrate Judge Daniel J. Stewart.  Mann was released on a financial bond and with pretrial supervision conditions.

If convicted of the charge set forth in the complaint, Mann faces up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by the FBI, with assistance from the New York State Attorney General’s Office, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.

The FBI continues to seek information from people and businesses who may have suffered financial loss due to the alleged activities of Mann, MyPayroll, and affiliated companies.  Information can be sent to the FBI by filling out a form on the FBI’s web site, available at https://forms.fbi.gov/seeking-victim-information-in-mypayrollhr-investigation.

As stated during Haskins’s guilty plea, from January 2013 through April 2015, Haskins was employed as an “estimator” with Adamo. Adamo is a private, “for profit,” company which provides demolition services throughout the United States and Canada, including the City of Detroit. Haskins’s responsibilities at Adamo included assembling bid packages in response to “Requests for Proposals” (RFPs) issued by the City of Detroit. Adamo responded to the RFPs by submitting bids to the City hoping to secure demolition contracts by being the lowest bidder. In assembling the bid packages, Haskins contacted various subcontractors requesting bids for work to be included in Adamo’s submissions. “Contractor A” was one of the subcontractors who received Haskins’s invitation to bid. On several occasions, Contractor A paid Haskins money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Haskins disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts.  Haskins accepted bribes on at least eight occasions while he worked at Adamo totaling approximately $14,000.00.

“The Antitrust Division will aggressively pursue collusion that corrupts the government contracting process, especially where the illicitly shared bid information enables the government contractor to submit anti-competitive bids to the detriment of taxpayer-funded programs,” said Assistant Attorney General Makan Delrahim.

“Anti-competitive corruption by city officials that award contracts in the Hardest Hit Fund’s Blight Elimination Program will be met by justice and accountability,” said Special Inspector General Christy Goldsmith Romero. “Defendant Haskins started taking bribes from subcontractors when he worked for lead contractor Adamo and continued his crimes as a city official. I commend U.S. Attorney Matthew Schneider and Assistant Attorney General for Antitrust Makan Delrahim for standing united with SIGTARP in fighting corruption in this TARP program.”

“Mr. Haskins was sentenced today for corrupting the bidding process both while he was seeking contracts through a federally-funded program and after he became a City of Detroit employee,” said SAC D'Antuono. “The FBI’s Detroit Area Public Corruption Task Force will continue to investigate and fight corruption by those who give illegal, preferential treatment at the expense of honest American business. I would encourage anyone with information about potential public corruption in Michigan to contact FBI Detroit's Public Corruption tipline at 313-965-2222 or our main number at 313-965-2323.”

The case was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, Adriana Dydell, and DOJ Antitrust Trial Attorney Matthew Stegman.

SAN JUAN, Puerto Rico – A federal grand jury returned a one-count indictment against Dennis Cotto-Alvarado for transporting a female minor with the intent to engage criminal sexual conduct, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Cotto-Alvarado was the coach of girls’ softball team called “Las Maratonistas de Coamo.”

The FBI is in charge of the investigation with the collaboration of the Puerto Rico Police Department and the Puerto Rico Department of Justice.

The indictment charges that from in or about June 2017 through February 2019, Cotto-Alvarado transported a 13-year-old female minor with the intent that the minor engage in unlawful sexual activity for which a person can be charged with a criminal offense under Puerto Rico law, all in violation of Title 18, United States Code, Section 2423(a).

The case is being prosecuted by Special Assistant U.S. Attorney Cristina Caraballo. If convicted, the defendant faces a mandatory minimum sentence of incarceration of ten years and a possible maximum statutory penalty of life imprisonment.

A criminal indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.

ALEXANDRIA, Va. – A Maryland man pleaded guilty today to aiding and abetting the straw purchase of multiple firearms.

According to court documents, between July and September 2018, Lawrence Paul Chambers, 21, of Silver Spring, aided and abetted the straw purchase of five firearms from federal firearm licensees in the Eastern District of Virginia by providing a woman he was dating money and counsel to illegally purchase firearms on his behalf. Police in Washington, D.C. recovered one of the illegally purchased firearms from a co-conspirator, 11 days after it was straw purchased.

Chambers pleaded guilty to making false statements with respect to the purchase of firearms and faces a maximum penalty of five years in prison when sentenced on Jan. 24, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

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 Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Annie Zanobini are prosecuting 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-285.

St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that complaints have been filed against two men for attempting to smuggle approximately $800,000 into St. Thomas by boat. Jose Ernesto Vazquez Colon and Abnel Belordo Colon were arrested Friday evening and made their initial appearances in federal court on Saturday in St. Thomas.

According to court documents, late Friday evening CBP Marine Unit agents noticed a boat traveling without navigational lights about three miles north of Savana Island. When CBP agents attempted to initiate a stop, the two individuals on the boat began throwing bags overboard. The bags were later found to contain roughly $800,000 in U.S. currency. After CBP agents disabled the boat’s motor, they boarded the vessel, apprehended the two defendants, and recovered multiple dumbbells with ropes attached. According to court documents, dumbbells tied to ropes are often used to ensure that contraband materials thrown overboard will sink to the bottom, enabling the contraband to be recovered later, using GPS.

This case is being investigated by the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Nathan Brooks.

United States Attorney Shappert reminds the public that a complaint is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.

St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today a partnership between the USVI Project Safe Neighborhoods Initiative and members of the faith-based community to encourage information-sharing and coordination as a means of combatting gun-related violence. The announcement follows meetings in St. Thomas and St. Croix today, where representatives of various churches and faith-based organizations, the St. Croix Long-Term Recovery Group, the Virgin Islands Police Department, and the U.S. Attorney’s Office discussed how best to address violence in the Territory.

"Today’s meetings represent a concerted effort by faith and community leaders in St. Thomas and St. Croix who are committed to working closely to break the cycle of violence," U.S. Attorney Shappert said. "Speakers at today’s meetings stressed the need to ‘break out of our silos’ and share valuable information about pressing needs and available resources." Building upon the success of a recent St. Croix Long-Term Recovery Group workshop in St. Croix, today’s discussions emphasized the importance of meeting the needs of students who lack afterschool learning and recreational opportunities; persons in correctional facilities who would benefit from education and mental health resources; and unemployed young people who require mentoring and vocational opportunities.

"What became apparent in today’s meetings, is that we all need to focus on identifying what resources are currently available in the Territory and what federal grants and other resources may be available to fill specific needs. One of the faith-based leaders emphasized the need for ‘wrap-around services,’ and that’s exactly what we will be looking for," Shappert said.

According to U.S. Attorney Shappert, "Project Safe Neighborhoods is the centerpiece of our crime reduction strategy. It is a tested and proven program to invest in our communities and foster vital partnerships. PSN enables the United States Attorney’s Office, together with our law enforcement partners, to target and prioritize criminal prosecutions on the most violent people in the most violent areas. Second, we engage with a wide variety of stakeholders—from federal and local law enforcement, to community groups, educators, faith-based organizations, and victims’ advocates—in order to identify the needs specific to our communities and to develop strategies to reduce crime."

Individuals wanting to know more about Project Safe Neighborhoods can check out Project Safe Neighborhoods.  For those wishing to participate in the PSN initiative, please contact the U.S. Attorney’s Office, 340-774-5757.

PITTSBURGH - A physician who operates a private family practice in Perryopolis, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.

The 29-count indictment, returned on September 19 and unsealed today, named Emilio Ramon Navarro, 58, of Coal Center, Pennsylvania, as the sole defendant.

According to Counts 1 – 28 of the Indictment, from April 2018 until April 2019, Navarro, a licensed physician, unlawfully distributed Oxymorphone and Oxycodone, Schedule II substances, to a person identified as "A.W." in return for sexual favors, either physically or by electronic communications, outside the usual course of professional practice and not for a legitimate medical purpose. Navarro is also charged in Count 29 with health care fraud for causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed controlled substances.

Navarro was arrested this morning and made an initial appearance in federal court today before U.S. Magistrate Judge Patricia Dodge. The government is seeking the defendant’s detention pending trial and a hearing on that matter is scheduled for September 24, 2019 at 2 p.m.

The law provides for a maximum per count sentence of 20 years in prison, a fine of $1,000,000, or both, for the controlled substances offenses. Navarro faces an additional maximum term of imprisonment of 10 years and fines of $250,000 for the health care fraud charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting this case on behalf of the government.

The investigation leading to the indictment in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.

The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Earlier today, in federal court in Central Islip, an indictment was unsealed charging Benjamin Conde, Chief Executive Officer of Essex Global Investments and President of Facultas Capital Management, and Lawrence Isen, the owner of Marketbyte, LLC, a purported stock promotion firm, with conducting a “pump and dump” scheme to defraud investors in Renewable Energy and Power, Inc. (RBNW).  ​The charges include conspiracy to commit securities fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering and substantive securities fraud.  The defendants were arrested this morning and Conde will be arraigned this afternoon before United States District Judge Joanna Seybert at the United States Courthouse in Central Islip.  Isen’s appearance for removal to the Eastern District of New York is scheduled for this afternoon at the federal courthouse in San Diego, California.       

​​Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

“As alleged, Conde and Isen joined forces with a ‘boiler room’ crew to defraud investors, many of them elderly, and enrich themselves at the expense of their victims,” stated United States Attorney Donoghue.  “The Department of Justice has made it a priority to hold accountable those who use our financial markets as a venue to lie, cheat and steal.”  Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission for its significant cooperation and assistance in the investigation. 

​​As alleged in the indictment, between March 2017 and July 2017, Conde and Isen hired a purported financial services business in Melville, New York, known by a number of names including My Street Research, that operated as a high pressure “boiler room.”  The boiler room engaged in a pump and dump scheme to defraud investors in RBNW.  As part of the scheme, the defendants and their co-conspirators artificially controlled the price and volume of traded shares and made misrepresentations to victim investors, many of whom were senior citizens, relating to the advisability of purchasing RBNW stock and its profitability.  The scheme generated over $3.1 million in trading profits for the defendants and their co-conspirators and losses for the victim investors when the stock price plummeted.

The defendants attempted to conceal the scheme by laundering approximately $2.8 million in fraudulently obtained proceeds.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, Conde and Isen each face up to 20 years’ imprisonment.

​​The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorney Erin E. Argo is in charge of the prosecution.

The Defendants:

BENJAMIN CONDE
Age: 56
Fairfield, New Jersey

LAWRENCE ISEN
Age: 66
San Diego, California

E.D.N.Y. Docket No. 19-CR-432 (JS)

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Shyniquah Lightner, 27, of Philadelphia, Pennsylvania, was sentenced today to twenty years’ incarceration and fifteen years’ supervised release by United States District Judge C. Darnell Jones II for her role in a scheme to sex traffic minor children.

In 2016 and 2017, Lightner recruited two children, ages 14 and 15, to engage in commercial sex acts at a house in Philadelphia.  She advertised the children on the website Backpage.com, and she collected money from the sex buyers who came to the residence for sexual encounters with the minors.  Her co-defendant, Malik Hudson, participated in the trafficking of the 15-year-old.

“Lightner’s crimes were devastating to her minor victims,” said First Assistant U.S. Attorney Williams. “Today’s sentence of twenty years’ incarceration reflects the seriousness of her crimes and the irrevocable damage she caused, all in pursuit of financial gain. We will continue to work collectively to investigate these destructive crimes against vulnerable children.”

The case was investigated by the Department of Homeland Security - Homeland Security Investigations, with assistance from the Philadelphia Police Department Special Victims Unit, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.

John H. Durham, United States Attorney for the District of Connecticut, and Administrator Carmen Rottenberg, U.S. Department of Agriculture’s Food Safety and Inspection Service, announced that DEBBIE L. SMITH, 60, of Ellington, waived her right to be indicted and pleaded guilty today in Hartford federal court to a charge related to a Connecticut meat processing business’s falsification of numerous E. coli test results.

According to court documents and statements made in court, New England Meat Packing, LLC, located in Stafford Springs, is a federally inspected business engaged in the slaughtering, processing, selling and transporting of meat and meat food products for human consumption.  Pursuant to the U.S. Department of Agriculture’s (USDA) approved Hazard Analysis and Critical Control Point (HACCP) plan for New England Meat Packing, the company is required to perform one generic E. coli carcass swab for every 300 animals slaughtered and to periodically collect ground beef samples for E. coli testing.

Memet Bequiri is the owner and general manager of New England Meat Packing, and Smith is/was the HACCP Coordinator/Quality Control Officer for the company.  Between November 3, 2016 and September 9, 2017, Smith prepared and submitted in the company’s Lab Sample Report binder, which the USDA’s Food Safety Inspection Service (FSIS) reviews, a total of 36 documents relating to 52 separate carcass swabs and ground beef samples on behalf of New England Meat Packing.  The 36 documents were each on the letterhead of a certified laboratory that tests food product samples to ensure safety and wholesomeness and signed by the laboratory director.  The documents stated that the required E. coli testing of samples submitted by New England Meat Packing had been conducted and completed, and that all 52 samples tested negative for E. coli.  In fact, none of the 52 carcass swabs and samples had been submitted or tested by the identified laboratory, or any other laboratory, and the 36 documents were fraudulently prepared using laboratory letterhead obtained from previous testing that New England Meat Packing had conducted with that laboratory.

The investigation revealed that Beqiri authorized the preparation and submission of the fabricated E. coli test results.  During an interview with a USDA’s FSIS investigator, Beqiri admitted that the documents were fraudulent, and that his business did not collect and submit the samples to the certified laboratory because he did not correlate the potential impact on food safety with his sampling program and wanted to create the appearance he was compliant with all USDA HACCP testing requirements.

There have been no known instances of illnesses reported by anyone who consumed the meat in any of the states where the meat was distributed.

Smith pleaded guilty to one count of making and using a false document, a charge that carries a maximum term of imprisonment of five years. 

Smith is released on bond pending sentencing, which is scheduled for December 10, 2019.

On August 20, 2019, Beqiri pleaded guilty to one count of making and using a false document and aiding and abetting.  He awaits sentencing.

The investigation was conducted by the U.S. Department of Agriculture, Food Safety and Inspection Service, Office of Investigations, Enforcement and Audit.  The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.

United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on September 19, 2019, the Honorable Pamela Pepper, United States District Court Judge for the Eastern District of Wisconsin, sentenced Chris Kubiak, 60, of Milwaukee, to 30 months in prison following his conviction for a fraud scheme that targeted elderly victims.  The prison sentence will be followed by three years of supervised release.  Kubiak also will be required to make restitution in the amount of $379,977 to the six victims named in the indictment.  

Kubiak had earlier pleaded guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343.  As admitted in his plea agreement, Kubiak worked as a financial advisor through Freedom Investors Corp, and Calton & Associates, Inc.  In that role, Kubiak arranged to have funds withdrawn from several elderly clients’ investment accounts and mailed to their homes or wired to their bank accounts.  Kubiak falsely told the clients that the funds were bonuses or dividends that he would reinvest for them.  He solicited personal checks from the clients, but rather than reinvesting the money as promised, Kubiak deposited the funds into his own checking account and used the money for gambling and other personal expenses.  The scheme spanned a period of five years and was ultimately discovered by a victim’s relative, who reported Kubiak to authorities.

Speaking for one of the victims, a relative described the debilitating emotional and mental distress suffered by her loved one who had long known and trusted Kubiak to grow her small nest egg.  In sentencing Kubiak, the Court emphasized the need for punishment and deterrence, both for Kubiak and for others who might be similarly tempted to prey upon the elderly.           

“The victims in this case entrusted Kubiak with savings they had earned through honest, hard work over their lifetimes,” said U.S. Attorney Krueger.  “Kubiak exploited that trust and now faces years in federal prison.  Let this case be a warning to anyone who would prey on elderly members of our community.”

The charges against Kubiak were announced as part of the U.S. Department of Justice’s largest-ever nationwide elder fraud sweep on March 7, 2019.  The case was investigated by detectives from the Waukesha County Sheriff Department and the Franklin Police Department and Special Agents from the United States Secret Service Financial Crimes Task Force.  The case was prosecuted by Assistant United States Attorney Carol L. Kraft.

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Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Jason Kiser, age 40, of Taneytown, Maryland, to eight years in federal prison, followed by 36 months of supervised release, for witness retaliation and illegal possession of firearms.  Kiser admitted that he burned the vehicle of an individual in retaliation for that person providing information to law enforcement concerning Kiser’s illegal possession of firearms.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; Carroll County Sheriff James T. DeWees; and Maryland State Fire Marshal Brian S. Geraci.

“We take witness tampering and witness retaliation very seriously,” said U.S. Attorney Robert K. Hur.  “Those who tamper with or retaliate against a witness will face federal prosecution and federal prison, where there is no parole—ever.”

According to his plea agreement, on May 8, 2018, Kiser went to a gunsmithing store in Taneytown, Maryland, which was located in a building next to the owner’s home.  The store was in the process of moving to a new location on West Baltimore Street in Taneytown.  Kiser asked the owner if he could take the parts from a firearm that Kiser had brought into the store with him, and place them on a stripped receiver that Kiser planned to obtain from another store.  The owner of the store knew Kiser and believed that Kiser had previously been convicted of theft of a motor vehicle and possibly other crimes and was therefore prohibited from possessing firearms or ammunition.  On May 9, 2018, an ATF investigator conducted a compliance check at the gunsmithing store and the owner advised the investigator of Kiser’s request.  The ATF investigator opened a criminal investigation of Kiser. 

On May 10, 2018, Kiser arrived at the gunsmithing store’s new location on West Baltimore Street in Taneytown, and provided the owner with an AR-556 rifle; a PWA, Model Commando receiver; and a Model A-15 receiver.  Kiser asked the owner to place a forward grip on the AR-556 rifle and take the parts off of the PWA Commando and place them on the A-15 receiver.  In coordination with investigators, on May 11, 2018, the owner advised Kiser that the firearms were ready.  Law enforcement arrested Kiser as he walked towards the store.  Kiser was charged in the Circuit Court for Carroll County with illegal possession of firearms.  In the charging documents, the officer identified the store owner as a witness. 

In the early morning hours of July 17, 2018, the store owner awoke at his house to the sound of a car horn.  The store owner looked out of his bedroom window and saw his vehicle, which was parked in the carport adjacent to his residence, on fire.  Firefighters extinguished the fire and called Maryland State Fire Marshals to determine the cause of the fire.  Investigators located a glove from behind the carport and recovered a plastic can cover and bolt cutters from next to the driveway.  They also recovered pieces of burned debris from the vehicle.  DNA evidence recovered from the glove and bolt cutters revealed a high stringency match to Kiser’s DNA, which was submitted to the Combined DNA Index System (CODIS) during Kiser’s previous arrests.  Investigators categorized the fire as an arson, based on the DNA evidence.

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 ATF, the Carroll County Sheriff’s Office, and the Office of the Maryland State Fire Marshal for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Patricia C. McLane and Mark Gurzo, formerly a Special Assistant U.S. Attorney in Maryland and now an Assistant U.S. Attorney in the Western District of Pennsylvania, who prosecuted the case.

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John H. Durham, United States Attorney for the District of Connecticut, announced that CRUZ FERNANDEZ, also known as “Blood,” 28, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 37 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and heroin.

According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford.  The investigation revealed that Wilson Velez, also known as “Wiso,” a member of the Almighty Latin Kings Nation (“Latin Kings”), was distributing heroin and fentanyl.  Velez employed family members and other Latin Kings members and associates to process, package and distribute the drugs from apartment buildings on Hamilton Street and Elliot Street in Hartford.  During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Velez and other members of the drug trafficking organization.

Fernandez, who is originally from New York, is a member of the Bloods, not the Latin Kings.  He relocated to Springfield, Massachusetts, and then to Hartford, where he began distributing fentanyl/heroin that he had acquired from Velez and other Latin Kings members.

At the time of the offense, Fernandez was on probation following a heroin related arrest in Springfield.

On May 1, 2018, a grand jury returned a 41-count indictment charging Velez, Fernandez and eight other members and associates of the Latin Kings.  Fernandez was arrested on May 7, 2018.  On February 26, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin and fentanyl.

Velez was arrested on federal narcotics offenses on December 7, 2017, and was subsequently released on bond.  He has been detained since April 5, 2018, when his bond was revoked.  On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and/or 400 grams or more of fentanyl, and one count of conspiracy to use and carry a firearm in relation to, and furtherance of, a drug trafficking crime.  He awaits sentencing.

The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Salim Davis, 34, of Philadelphia, PA was convicted at trial of one count of being a felon in possession of a firearm, one count of possession of a firearm in connection with a drug trafficking offense, one count of possession with intent to distribute a controlled substance, and one count of aiding and abetting the making of a false statement to a federal firearms licensee.

At trial, the government presented evidence that, on December 29, 2017, at approximately 3:25 p.m., an off-duty Philadelphia Police Inspector was driving his unmarked police car in the area of 2500 Island Avenue when he heard gunshots.  Minutes later, he observed defendant Salim Davis and another man carrying firearms while walking in an alleyway near the Inspector’s car.  The Inspector commanded that they stop and put their hands up, but Davis fled and discarded his jacket.  Police eventually caught up with Davis, placed him in custody, and recovered from him money, a bottle containing 72 Alprazolam pills, and several loose pills in Davis’s pocket.  In addition, upon picking up Salim’s discarded jacket, officers recovered a Smith & Wesson, .40 caliber, semi-automatic handgun loaded with 10 live rounds.  Police later determined that the weapon they recovered was purchased by a third party on Davis' behalf at Double Action, a federal firearm licensee, in Yeadon, PA.

“This guilty verdict is another important step towards protecting our communities from drug and gun offenders who bring violence to our communities,” said First Assistant U.S. Attorney Williams. “The United States Attorney’s Office, with our law enforcement partners, will aggressively investigate, prosecute, and hold these offenders accountable. We deeply appreciate the cooperation of all of our federal, state, and local partners in defending our communities and bringing Davis to justice.”

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 case was investigated by ATF and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Kate Driscoll.

United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced Raul Burden, a 27-year-old resident of Baton Rouge, Louisiana, to 60 months in federal prison following his conviction of possessing a firearm by a convicted felon.  The Court further sentenced Burden to 3 years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.

According to admissions made as part of his guilty plea, on December 24, 2018, EMS dispatchers received three 911 calls reporting shots being fired outside of an apartment complex located on Manson Drive in Baton Rouge.  East Baton Rouge Parish Sheriff’s deputies responded to the scene.  Upon arrival, deputies identified Burden from the emergency calls and ordered him to remove his hands from his pockets and place them on his head.  Burden did not comply.  When deputies again ordered Burden to remove his hands, he threw the firearm away from himself.  The firearm, a Charter Arms “Off Duty” .38 special caliber revolver, was recovered at the scene. 

Prior to possessing the firearm, Burden was convicted of intimidating, impeding, or injuring witnesses in May 2009, in East Baton Rouge Parish and attempted introduction of contraband at a municipal or parish prison or jail in October 2015, in Ouachita Parish.

U.S. Attorney Fremin stated, “This office remains committed to upholding the rule of law by investigating and prosecuting convicted felons, such as this defendant, who illegally possess firearms.  I want to commend the East Baton Rouge Sheriff’s Officers whose rapid response to an unsafe situation resulted in a dangerous criminal being disarmed.  I also want to thank my prosecutor, as well as the ATF, and the East Baton Rouge Sheriff’s office for their work in this case. Notably, I would like to recognize the members of the community who had the courage to dial 911 and report the incident which allowed first responders to quickly respond and make a lawful arrest.”

“This individual disregarded both the law and the safety of others,” stated ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn.  “The sentence imposed today sends a strong message to criminals that they will be held accountable for their actions.”

“The East Baton Rouge Sheriff’s Office is committed to working with all of our local, state and federal counterparts to get dangerous criminals with weapons off the streets of our community,” Sheriff Sid Gautreaux said. “We are grateful for the U.S. Attorney’s Office’s commitment to prosecute these cases on the federal level to ensure the continued safety of our community.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the East Baton Rouge Parish Sheriff’s Office.  The case is being prosecuted by Assistant United States Attorney Kristen Craig.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ANDREI TYURIN, a/k/a “Andrei Tiurin,” pled guilty in Manhattan federal court to computer intrusion, wire fraud, bank fraud, and illegal online gambling offenses in connection with his involvement in a massive computer hacking campaign targeting U.S. financial institutions, brokerage firms, financial news publishers, and other American companies.  These hacks included one of the largest thefts of customer data from a U.S. financial institution in history.  TYURIN is charged with committing these crimes with Gery Shalon, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham”; Joshua Samuel Aaron, a/k/a “Mike Shields”; and Ziv Orenstein, a/k/a “Aviv Stein,” a/k/a “John Avery,” in furtherance of securities market manipulation, illegal online gambling, and payment processing fraud schemes perpetrated by Shalon, Aaron, Orenstein, and their co-conspirators.  TYURIN pled guilty before U.S. District Judge Laura Taylor Swain. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Andrei Tyurin’s extensive hacking campaign targeted major financial institutions, brokerage firms, news agencies, and other companies.  Ultimately, he gathered the customer data of more than 80 million victims, one of the largest thefts of U.S. customer data from a single financial institution in history.  With today’s plea, Tyurin’s global reign of computer intrusion is over and he faces significant time in a U.S. prison for his crimes.”

According to the allegations contained in the Indictments to which TYURIN pled guilty, other filings in this case, and statements made during court proceedings, including TYURIN’s guilty plea hearing:

From approximately 2012 to mid-2015, TYURIN engaged in an extensive computer hacking campaign targeting financial institutions, brokerage firms, and financial news publishers in the U.S., including the theft of personal information of over 100 million customers of the victim companies.  TYURIN’s hack of one financial institution headquartered in Manhattan resulted in the theft of personal information of over 80 million customers, making it one of the largest theft of customer data from a U.S. financial institution in history.  TYURIN engaged in these crimes at the direction of Shalon and in furtherance of other criminal schemes overseen and operated by Shalon and his co-conspirators, including securities fraud schemes in the United States.  For example, in an effort to artificially inflate the price of certain stocks publicly traded in the U.S., Shalon and his co-conspirators marketed the stocks in a deceptive and misleading manner to customers of the victim companies whose contact information TYURIN stole in the intrusions.

In addition to the U.S. financial sector hacks, TYURIN also conducted cyberattacks against numerous U.S. and foreign companies in furtherance of various criminal enterprises operated by Shalon and his co-conspirators, including unlawful internet gambling businesses and international payment processors.  Nearly all of these illegal businesses, like the securities market manipulation schemes, exploited the fruits of TYURIN’s computer hacking campaigns.  Through these various criminal schemes, TYURIN, Shalon, and their co-conspirators obtained hundreds of millions of dollars in illicit proceeds.

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TYURIN, 35, of Moscow, Russia, pled guilty to one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to violate the Unlawful Internet Gambling Enforcement Act, which carries a maximum sentence of five years in prison; and one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison.  In addition, TYURIN pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 30 years in prison; and one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years prison, which was transferred from the Northern District of Georgia for purposes of his plea. 

TYURIN is scheduled to be sentenced by Judge Swain on February 13, 2020.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Swain.

Mr. Berman praised the investigative work of the FBI and the U.S. Secret Service, and expressed his sincere gratitude to the Chief Prosecutor’s Office of Georgia and the Ministry of Justice of Georgia for their support and assistance with the extradition proceedings.  He also thanked the Securities and Exchange Commission, Homeland Security Investigations, the Financial Industry Regulatory Authority, the Office of International Affairs of the U.S. Department of Justice for its assistance with the extradition, and the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information-sharing among the victim institutions.

The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Eun Young Choi, Noah Solowiejczyk, and Sarah Lai are in charge of the prosecution.

SACRAMENTO, Calif. — Today, U.S. District Judge William B. Shubb sentenced William Lamar Blessett, 40, of North Highlands, to 20 years in prison for possession of child pornography, U.S. Attorney McGregor W. Scott announced. The 20-year sentence includes 18 years for Blessett’s December 5, 2018, jury trial conviction, and an additional 2 years for violating his terms of supervised release. Particularly, while on federal supervised release for a 2008 child pornography conviction, Blessett was caught and convicted again in this case for possessing child pornography.

According to evidence presented during a two-day trial in December 2018, between mid-2016 and October 2017, Blessett possessed over 2,000 electronic images and videos of child pornography in a Dropbox cloud storage account and on at least five electronic devices, including a laptop computer, two smartphones, and two tablet computers. Blessett possessed these images knowing that at least some of them showed minors engaged in sexually explicit conduct. Blessett accessed the pornographic images on the internet, at least in part by using links he obtained on an instant messenger application called Kik. Blessett viewed the images and downloaded them to a Dropbox account that he owned and operated. Blessett then used the account to organize and view the images and transfer them to his electronic devices.

During sentencing, Judge Shubb also relied on additional evidence showing that Blessett was using the internet to contact and communicate with minors. This evidenced showed that Blessett engaged in online communications with several minors and encouraged them to exchange sexually suggestive messages.

This case was the product of an investigation by the Sacramento County Sheriff’s Department, Central Investigative Division, Hi-Tech Crimes Bureau; the Sacramento Valley Internet Crimes Against Children Task Force; and the Federal Bureau of Investigation. Assistant U.S. Attorneys Grant Rabenn and Amy Hitchcock, and Special Assistant U.S. Attorney Robert Artuz prosecuted the case.

Bangor, Maine:  United States Attorney Halsey B. Frank announced that Eric Tracy, 30, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr., to four years in prison and three years of supervised release for conspiracy to distribute heroin and cocaine base, commonly known as “crack.”  He pled guilty on July 19, 2018.  

According to court records, between January 2016 and February 2017, Tracy conspired with others to acquire heroin and crack in Waterbury, Connecticut and to distribute it in Penobscot County.  The defendant distributed the drugs in the Bangor area and facilitated the drug dealing activities of other conspirators.

The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.

John H. Durham, United States Attorney for the District of Connecticut, announced that ZIMER KALICI, 55, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of theft of public money related to his illegal receipt of Social Security benefits.

U.S. Attorney Durham noted that individuals are not eligible for Social Security benefits when they permanently relocate to live outside of the U.S., and eligibility for Social Security benefits terminates upon death.

According to court documents and statements made in court, Kalici’s father, a Social Security benefits recipient, relocated from the U.S. to Macedonia in 2009, and died in January 2010.  Kalici did not report his father’s death to the Social Security Administration and, between 2009 and 2018, deposited approximately $52,417.84 worth of Social Security checks intended for his father into his own personal bank account.

In November 2018, Kalici was interviewed by investigators with the Social Security Administration Office of Inspector General (“SSA OIG”).  During the interview, Kalici stated that his father was still alive and had left the U.S. for Macedonia in May 2018.  Kalici subsequently provided SSA OIG with a false funeral internment certificate that represented his father had died on November 26, 2018.

Judge Meyer scheduled sentencing for February 28, 2020, at which time Kalici faces a maximum term of imprisonment of 10 years.

Kalici is released on a $25,000 bond pending sentencing.

This matter is being investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.

John H. Durham, United States Attorney for the District of Connecticut, announced that RAFAEL ARROYO, 34, of Hartford, pleaded guilty today in Hartford federal court to narcotics distribution and firearm possession offenses.

According to court documents and statements made in court, on July 26, 2018, a court-authorized search of Arroyo’s Broad Street apartment revealed approximately 400 bags of packaged heroin, a distribution quantity of cocaine, a Star S.A. 9mm semiautomatic pistol, an H&R “Sportsman” .22 caliber long rifle revolver, a Group Industries 9mm firearm, assorted ammunition, and three bulletproof vests.

Arroyo pleaded guilty to one count of possession with intent to distribute heroin and cocaine, which carries a maximum term of imprisonment of 20 years, and one count possession of firearms in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years.  He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on December 18, 2019.

Arroyo’s criminal history includes state felony convictions for drug and firearm offenses.  Arroyo has been detained since his arrest on July 26, 2018.

This matter has been investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force.  The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.

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 neighborhoods safer for everyone.