Tampa, FL – A federal jury has found Emiro Hinestroza-Newbbooll (48, Colombia) guilty of one count of conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States, and one count of possession with the intent to distribute five kilograms or more of cocaine on that vessel. Hinestroza-Newbbooll faces a maximum penalty of life in federal prison. His sentencing is scheduled for April 30, 2020.

According to evidence presented at trial, Hinestroza-Newbbool was part of an international maritime drug smuggling operation involving at least 600 kilograms of cocaine worth approximately $18 million. Hinestroza-Newbbooll was the captain of a four-man, Colombia-based cocaine smuggling crew. Prior to their interdiction by the U.S. Coast Guard (USCG), Hinestroza-Newbbooll and his crew were transporting approximately 30 to 40 bales of cocaine onboard a go-fast vessel from Colombia to Honduras following a known smuggling route known as the “Honduras Rise.”

On December 1, 2018, a USCG HC-130J aircraft deployed from Air Station Elizabeth City, North Carolina spotted and recorded Hinestroza-Newbbooll and his crew onboard a go-fast vessel traveling at a high rate of speed, approximately 110 nautical miles southwest of Jamaica. In an attempt to destroy evidence and evade capture, Hinestroza-Newbbooll and his crew jettisoned all of the cocaine bales onboard the vessel and sank them to the ocean bottom, by tying the bales to their outboard engines and throwing the engines (their only means of propulsion) overboard. The USCG aircrew thwarted that attempt and was able to observe and record the jettison.

Later that day, Hinestroza-Newbbooll, his crew, and their now engine-less vessel were interdicted and boarded by USCG law enforcement officers from Tactical Law Enforcement Team (TACLET) Pacific. That boarding yielded crucial evidence consistent with cocaine trafficking, including trace amounts of cocaine present on the smuggling vessel and Hinestroza-Newbbooll and his crew.

This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Special Assistant United States Attorneys Nicholas DeRenzo and Toni Goodin.

KANSAS CITY, Mo. – A Kansas City, Missouri woman pleaded guilty in federal court today to a Social Security and bankruptcy fraud scheme.

Carol L. Dille, 67, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of wire fraud and one count of bankruptcy fraud.

Dille married Gerald A. Sanders in November 1988; they separated in 2009. Dille admitted today that she filed an online application for retirement insurance benefits in September 2013, using the identity – including the name, date of birth, and Social Security number – of Sanders.  

Dille, representing herself as Sanders, provided her own address, phone number, and email address as contact information. Dille, while still representing herself as Sanders, indicated benefits should be direct deposited into the bank account of “Alliance of Divine Love Chapel 1202,” of which she was the sole authorized signor on the account.

On May 7, 2015, Dille filed for Chapter 13 bankruptcy. She claimed $500,001 to $1 million in estimated liabilities, but failed to list – effectively concealing – the Alliance of Divine Love bank account. Dille’s bankruptcy case was dismissed on Oct. 5, 2015, because she failed to make required payments.

On March 9, 2016, Dille again filed for bankruptcy. Dille again failed to list – effectively concealing – the Alliance of Divine Love bank account. This case was dismissed on May 5, 2016, because Dille again failed to make required payments.

During the summer of 2016, Dille communicated with Sanders (who had moved to Indonesia) via email about helping him set up his retirement insurance benefits. She told him she had set up his benefits to begin depositing into a credit union. In August 2016, following a move from Indonesia to Guam, Sanders went into a Social Security Administration field office in Guam. Sanders was told the Social Security Administration had been paying retirement benefits for him since 2013. Sanders stated that he was not aware he had been receiving benefits since 2013, and that he had moved to Indonesia in 2009.

From October 2013 through November 2017, the Social Security Administration paid a total of $76,601 in monthly retirement payments earmarked for Sanders. Due to Dille’s fraudulent application and her subsequent concealment of the bank account, she fraudulently obtained at least $54,752 in retirement insurance benefits under Sanders’s name.

Under federal statutes, Dille is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the Social Security Administration, Office of Inspector General.

Ocala, Florida – United States Attorney Maria Chapa Lopez announces that three men charged with the 2019 robberies of two central Florida Rural King locations—Carlos Eduardo Hampton, Jr. (22, Tampa), Quintin Eugene Augustus (18, Cocoa), and Jonathan Arthur Floyd (21, Cocoa) have each entered guilty pleas to two counts of interference with commerce by robbery. Hampton also pleaded guilty to possessing a firearm as a convicted felon. Each faces up to 20 years in prison on each of the robbery counts; Hampton also faces up to 10 years’ imprisonment for the firearm offense.

The individuals had been indicted on October 2, 2019.

According to the plea agreements, on July 26 and August 16, 2019, Hampton, Augustus, and Floyd used a sledgehammer to break into two Rural King locations in Ocala and Zephyrhills. The men then used the sledgehammer to smash open display cases and steal a total of 28 firearms. They were apprehended by the Zephyrhills Police Department after the second robbery. Hampton, a convicted felon, is prohibited from possessing firearms or ammunition under federal law.

A fourth individual, Christopher Hooker (24, Orlando), has also been charged in this case. He is currently awaiting trial.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ocala Police Department, and the Zephyrhills Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted his role in a conspiracy to operate a gambling enterprise, U.S. Attorney Craig Carpenito announced.

John Dougherty, 55, of Keyport, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to use facilities in interstate commerce to carry on a business enterprise involving gambling in violation of New Jersey law.

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

From January 2011 to October 2017, Dougherty conspired with an unnamed New Jersey resident (“Individual 1”). Acting as Individual 1’s agent for their gambling business, Dougherty had his own group of bettors who, with Individual 1’s knowledge and assistance, were given access to a website to conduct sports betting with their own usernames and passwords.

Dougherty used money provided by Individual 1 to pay bets won by Dougherty’s bettors. Dougherty also collected money from his bettors for bets they lost and then met with Individual 1 in various locations in New Jersey to share that money.

Dougherty and Individual 1 agreed to use various facilities in interstate commerce to carry on their gambling business, including the internet, cellular telephones used for interstate calls and text messaging, and an overnight delivery service. At various times, Individual 1 changed the cell phone number that he used to communicate with Dougherty and referred to himself in text messages by a code name. After being informed by Dougherty about an expected delivery of “35K” from one of Dougherty’s bettors, Individual 1 sent Dougherty a text message, “Let me know when the eagle has landed.” Later that same day, Dougherty sent Individual 1 a text message with a photograph of the UPS Express Box containing a substantial amount of cash sent by his bettor and with the note, “Eagle has landed. Gonna count now.”

The charge of conspiring to use facilities in interstate commerce to carry on a gambling business in violation of local state law carries a maximum potential penalty of five years in prison and a $250,000 fine. Dougherty forfeited $80,000 to the United States. Sentencing is scheduled for May 6, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney J Imbert of the U.S. Attorney’s Office’s Special Prosecutions Division.

Defense counsel: Keith G. Oliver Esq., Middletown, New Jersey

DES MOINES, Iowa – On January 30, 2020, following a four-day trial, a jury found Daeron Johnson Merrett guilty of conspiracy to distribute 500 grams or more of cocaine, 8 counts of distribution of a controlled substance, one count of possession with intent to distribute cocaine, and one count of possessing a firearm as a felon. The case was presided over by United States District Court Judge Rebecca Goodgame Ebinger. Sentencing is scheduled for May 29, 2020, at 9:00 a.m.

Merrett was arrested on March 27, 2019, during the coordinated execution of search and arrest warrants in Des Moines. Merrett was identified from the criminal complaint affidavit as a leader of C-Block, a criminal street gang based in Des Moines. In December 2018, law enforcement obtained authorization to intercept Merrett’s telephone communications, which led to the identification of Merrett’s cocaine trafficking network.

During trial, the government presented evidence that Merrett began traveling to Chicago, Illinois in January 2019 to obtain cocaine for distribution in Des Moines. Over the course of a one-month period, Merrett made four separate trips to Chicago to obtain cocaine, totaling over 500 grams. The evidence also showed that Merrett developed a Texas-based cocaine source of supply, from which he arranged to receive a kilogram of cocaine. Merrett had numerous cocaine customers and co-conspirators in Des Moines, many of whom were charged in the same Indictment and have entered guilty pleas.

On March 27, 2019, during a search warrant executed at Merrett’s Des Moines residence, law enforcement located cocaine, numerous digital scales, packaging materials, a loaded firearm, and various rounds of ammunition.

Merrett has a prior conviction for a serious drug felony, that is, a 2011 conviction in the Iowa District Court for Polk County for delivery of a controlled substance.

Conspiracy to distribute more than 500 grams of cocaine following a conviction for a serious drug felony carries a mandatory minimum term of imprisonment of ten years and a
maximum term of imprisonment of life.

The case was investigated by the Federal Bureau of Investigation’s Central Iowa Gang Task Force, Des Moines Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, Dallas County Sheriff’s Office, Polk County Sheriff’s Office, Story County Sheriff’s Office, and the Altoona Police Department. The case was prosecuted by Assistant United States Attorneys Mikaela J. Shotwell and Adam J. Kerndt.

John H. Durham, United States Attorney for the District of Connecticut, announced that WILIAN ALEXANDER ORELLANA-LUNA, 40, a citizen of El Salvador last residing in West Haven, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to reentry of a removed alien.

According to court documents and statements made in court, Orellana-Luna had encounters with the U.S. Border Patrol in Texas in March 2013, November 2015 and February 2019.  He was removed to El Salvador after each encounter.

On October 22, 2019, Orellana-Luna was arrested by West Haven Police and charged with evading responsibility resulting in injury or property damage.  A biometric match alerted Immigration and Customs Enforcement (ICE) that Orellana-Luna, who had been released after his arrest, was present in Connecticut.  ICE arrested Orellana-Luna on December 5, 2019.

Immediately following the guilty plea proceeding, Judge Underhill sentenced Orellana-Luna to time served.  Orellana-Luna was then released into ICE custody for removal to El Salvador.

This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE).  The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.

ATLANTA - Benjamin Jenkins has been convicted by a jury of multiple counts of producing and distributing child pornography. Jenkins lured numerous young girls into sending him sexually explicit photos and videos, and then retaliated against the girls who refused to send him more.

“Jenkins is a predator who used various social media sites to lure and coerce young girls into sending him child pornography,” said U.S. Attorney Byung J. “BJay” Pak. “He terrorized his young victims by threatening to post their photographs online if they did not comply, and he frequently made good on these threats. A jury has now held Jenkins accountable for his horrific crimes, and he faces a lengthy prison sentence.”

“Sextortion is a growing threat that traps our youth in a horrific situation they aren’t able to get out of.  The removal of Jenkins from our community makes us all safer,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “With studies showing that over half of children over 11 years old have a cellphone, I urge parents to educate themselves and their kids about the dangers that exist on their phones.  Parents need to know and monitor their children’s social media usage and ensure their children are only ‘friending’ people they personally know.   Unfortunately, once the child decides to hit send on a photograph, there is no way to pull it back or remove it from the internet.   HSI Atlanta will continue to prioritize our investigations to protect our youth from these online predators.”

According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in 2015, Jenkins targeted girls between the ages of 13 and 16 years. To lure the girls, he used different aliases and profiles to trick the girls into sending him sexually suggestive photos of themselves. After a girl sent him a photo, Jenkins coerced the child into sending him more photos and videos by threatening to post the photos online or to send the images to the girl’s family and friends.  Jenkins instructed the girls on what body parts to show, what poses to make, and what objects to insert into their bodies.  Jenkins further humiliated his victims by forcing them to send him videos showing them drinking their own urine or licking toilets. He also humiliated many of his victims by making them watch him masturbate.

Once a girl blocked Jenkins online, he sent her explicit photos to her parents and friends with demands that the girl resume communications with him.  Jenkins also posted his victim’s nude photos and contact information online with messages instructing men on how to contact the girls directly for more photos or for sex.

Benjamin Jenkins, a/k/a “Rei,” a/k/a “Reithe8th,” a/k/a “Dani Domo, 25, of Mableton, Georgia, was charged with nine counts of producing child pornography and three counts of distributing child pornography.  Nine of his victims testified at trial.  Jenkins was convicted of all of these charges by a federal jury on January 16, 2020.

Sentencing is scheduled for April 2, 2020, at 10:00 a.m. before U.S. District Judge Michael L. Brown.

The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating this case.

Assistant U.S. Attorneys Paul R. Jones and L. Skye Davis, Coordinator of the U.S. Attorney’s Office’s Project Safe Childhood and Anti-Human Trafficking programs, are prosecuting the case.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the U.S. Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Greeneville, Tenn. – On January 24, 2020, Juan Moreno-Pantiga, 30, of Bulls Gap, was sentenced before the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.

Moreno-Pantiga plead guilty to an indictment charging him with conspiracy to distribute methamphetamine and conspiracy to commit money laundering.  Moreno-Pantiga was sentenced to 262 months in prison and will be deported to Mexico after completion of his term of incarceration.

Moreno-Pantiga operated a used car lot from which he and his associates sold methamphetamine and laundered drug proceeds.  Additionally, Moreno-Pantiga owned a stash-house where law enforcement recovered over 3 kilograms of methamphetamine, 450 grams of cocaine, 41 kilograms of marijuana, and five firearms during the execution of a search warrant.  Moreno-Pantiga admitted he was part of a methamphetamine distribution network responsible for trafficking multiple kilograms of methamphetamine supplied by large trans-national criminal organizations.  Moreno-Pantiga and 23 others were charged in an indictment returned by a federal grand jury on January 8, 2019. All defendants have plead guilty. 

The multi-agency investigation included Greene County Sheriff’s Department, Greeneville Police Department, Hawkins County Sheriff’s Department, Hamblen County Sheriff’s Department, Jefferson County Sheriff’s Department, Washington  County Sheriff’s Department, Tusculum Police Department, Baileyton Police Department, Elizabethton Police Department, Third Judicial Drug Task Force, Fourth Judicial Drug Task Force, Tennessee Bureau of Investigation (TBI), Tennessee National Guard Counter-drug Task Force, Tennessee Highway Patrol, United States Marshal Service, Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI)..

Assistant U.S. Attorneys J. Christian Lampe and Andrew C. Parker represented the United States.

The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy.  OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations.  Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

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KANSAS CITY, Mo. – An Independence, Missouri, financial advisor pleaded guilty in federal court today to a fraud scheme in which he stole more than $1 million from two elderly clients.

“A trusted financial advisor greedily preyed on two unsuspecting elderly clients to illegally enrich himself,” said U.S. Attorney Tim Garrison. “It’s criminal, but even more contemptible when those granted positions of trust take advantage of vulnerable victims, such as their elderly clients.”

Kraig Gier, 59, pleaded guilty before U.S. District Judge Greg Kays to two counts of wire fraud.

Gier, who operated a business called Security Planning Corporation, admitted that he stole a total of $1,087,964 from a 96-year-old client and an 84-year-old client. Through his scheme to defraud, Gier caused losses to one victim client of $879,602 and to another victim client of $208,362.

Gier began making fraudulent withdrawals from the various investment accounts of these clients in February 2015, and had the money deposited into either his personal checking account or his business account. This fraud scheme continued until July 2018.

Gier sometimes forged the signature of the client victims on the paperwork associated with a particular withdraw request. At other times, Gier would contain with the withdrawal paperwork a fraudulent voided check with the victim’s name on it but with his personal or business account number as the intended recipient of the requested funds.

In order to cover up his fraudulent scheme, Gier admitted, he prepared false and fictitious documentation purportedly from the financial company holding the victim clients’ investment. This documentation would fraudulently represent they were making a significant profit even though he had often significantly depleted their account.

Under federal statutes, Gier is subject to a sentence of up to 20 years in federal prison without parole on each of the two counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Executive Assistant U.S. Attorney David Ketchmark. It was investigated by the FBI and the Independence, Mo., Police Department.

John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL A. STEVENS, 26, of Brooklyn, New York, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of conspiracy to falsely make, forge, counterfeit and pass Federal Reserve Notes.

According to court documents and statements made in court, on May 7, 2019, Enfield Police arrested Stevens and another individual after they attempted to pass counterfeit currency at a Dick’s Sporting Goods store in Enfield.  A subsequent search of their vehicle revealed more than $600 in counterfeit currency, 33 pages of paper with uncut $50 and $20 counterfeit notes, an unopened box of paper, and a printer.

The investigation revealed that, in late April 2019, Stevens and others passed hundreds of dollars in counterfeit currency at retail locations in New Britain and Vernon.

Investigators also learned that there was an active federal warrant for Stevens’ arrest in the Eastern District of Virginia.  On February 21, 2019, a federal grand jury in Richmond, Virginia, returned as indictment charging Stevens and four other individuals with counterfeiting offenses.  The case against Stevens was transferred to the District of Connecticut for further prosecution.

In pleading guilty, Stevens admitted that, in January 2019, he and others passed approximately $21,800 in counterfeit currency at locations in Fredericksburg and Richmond, Virginia.

Judge Shea scheduled sentencing for April 24, 2020, at which time Steven faces a maximum term of imprisonment of five years.  Stevens who had been detained since May 7, 2019, was released today on a $50,000 bond.

This investigation is being conducted by the U.S. Secret Service with the assistance of several local police departments.  The case in the District of Connecticut is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.

TOPEKA, KAN. – Harcros Chemicals, Inc., of Kansas City, Kan., pleaded guilty today to violating a federal clean air law in connection with a toxic chlorine gas cloud that formed over Atchison, Kan., in 2016, U.S. Attorney Stephen McAllister said.

According to the company’s plea agreement, Harcros is expected to pay a $1 million fine. The co-defendant in the case, MGP Ingredients, Inc., of Atchison pleaded guilty in November in the same case. That company also is expected to pay a $1 million fine.

Harcros pleaded guilty to negligently violating the federal Clean Air Act. In its plea, the company admitted that on Oct. 21, 2016, a greenish-yellow chlorine gas cloud formed when 4,000 gallons of sulfuric acid were mistakenly combined with 5,800 gallons of sodium hypochlorite. The Atchison County Department of Emergency Management ordered community members to shelter in place and to evacuate in some areas. Approximately 140 individuals including members of the public, first responders, employees of MGP Ingredients and Harcros Chemicals sought medical attention.

“The chemicals involved in this case posed serious public health and environmental dangers,” said Assistant Director Justin Oesterreich of EPA’s Criminal Investigation Division in Kansas.  “EPA and its law enforcement partners are committed to holding responsible parties accountable for actions that put an entire community at risk.”

Harcros is set for sentencing May 27. The company could be sentenced to a term of probation up to five years.

McAllister commended the Environmental Protection Agency and Assistant U.S. Attorney Rich Hathaway for their work on the case.

Victims can get more information on US v. Midwest Grain Products, Inc., by visiting https://www.justice.gov/usao-ks/victim-witness and filling out a victim questionnaire, leaving a message on a designated phone line at 913-551-6543 or emailing questions to usaks.victim.witness@usdoj.gov

McAllister commended the Environmental Protection Agency and Assistant U.S. Attorney Rich Hathaway for their work on the case.

Victims can get more information on US v. Midwest Grain Products, Inc., by visiting https://www.justice.gov/usao-ks/victim-witness and filling out a victim questionnaire, leaving a message on a designated phone line at 913-551-6543 or emailing questions to usaks.victim.witness@usdoj.gov .

            WASHINGTON – Hybrid Tech Holdings, LLC, Hybrid Technology, LLC, and Ace Strength International, LTD, have agreed to resolve allegations that they violated the False Claims Act by colluding to rig the bidding of an auction to purchase the United States Department of Energy’s non-performing loan to Fisker Automotive, Inc. and Fisker Automotive Holdings, Inc., the Department of Justice announced today. 

            “The Department is committed to ensuring a level playing field for those who seek to do business with the government,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “As today’s settlement demonstrates, the Department will take appropriate action where it determines that this principle has been violated.”

            The government alleged that the defendants exerted pressure on the two other competing bidders to suppress their bids during the live auction, thereby depriving the Department of Energy of a fair bidding process and reducing the amount ultimately recovered in the auction. As a result, the defendants were able to acquire the non-performing loan secured by the assets of Fisker Automotive for far less than the fair market value of the loan.

            “This settlement reflects our Office’s commitment to hold accountable those who exploit the system for their own personal gain,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “Companies working with the federal government must perform their obligations with transparency and fairness and we will continue to work with our law enforcement partners to pursue and penalize those who violate the False Claims Act.”

            The settlements resolve allegations originally filed in a lawsuit by William R. Baldiga and the FAH Liquidating Trust, the successor to the Official Committee of Unsecured Creditors of Fisker Automotive Holdings, Inc.  The suit was filed in federal court in the District of Columbia pursuant to the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  Mr. Baldiga’s and the Trust’s share of the settlement will be $5,220,000.  

            The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the District of Columbia, and the United States Department of Energy Office of General Counsel and Office of Inspector General.     

            The case is captioned United States ex rel. Baldiga et al v. Hybrid Tech Holdings, LLC et al, No. 15-00019 (D.D.C).  The claims resolved by the settlements are allegations only. 

            This case was investigated by Assistant U.S. Attorneys John Truong and Heather Graham-Oliver from the U.S. Attorney’s Office for the District of Columbia and Trial Attorney John W. Black with the Department of Justice’s Commercial Litigation Branch.

John H. Durham, United States Attorney for the District of Connecticut, announced that JULIAN DE JESUS CASTILLO, 35, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for possessing weapons while incarcerated at the Federal Correctional Institution in Danbury, Connecticut (FCI Danbury).

According to court documents and statements made in court, on February 8, 2018, Castillo, while an inmate at FCI Danbury, possessed a razor blade and a 7.5 inch piece of flat metal that had sharpened edges and a point at one end.  The razor blade was discovered taped to the underside of Castillo’s assigned bunk and the metal blade was concealed at the base of a pillar adjacent to Castillo’s bunk.  The objects were designed or intended to be used as weapons.

On September 24, 2019, Castillo pleaded guilty to possession of contraband in a federal prison.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Anastasia E. King.

CHICAGO — Two former employees of the Chicago White Sox schemed with a ticket broker to fraudulently sell thousands of tickets to White Sox baseball games, according to an indictment returned in federal court in Chicago.

While working as ticket sellers for the White Sox, JAMES COSTELLO and WILLIAM O’NEIL fraudulently generated complimentary and discount game tickets without the team’s authorization and gave them to the broker, BRUCE LEE, in exchange for cash payments, the 14-count indictment states.  Lee, who owned the Chicago-based ticket brokerage Great Tickets, then sold the tickets on the online marketplace StubHub at prices below face value, the indictment states. 

During the 2016 to 2019 baseball seasons, Lee earned approximately $868,369 by selling approximately 34,876 tickets that he fraudulently obtained from Costello and O’Neil, the charges allege.  As a result of the scheme, the White Sox suffered a loss of approximately $1 million, the indictment states.

The indictment was returned Thursday in U.S. District Court in Chicago.  It charges Lee, 34, of Chicago, with eleven counts of wire fraud and two counts of money laundering, while Costello, 66, of New Lenox, is charged with one count of wire fraud, and O’Neil, 51, of New Lenox, is charged with one count of making a false statement to the FBI.  Arraignments have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI.  The government is represented by Assistant U.S. Attorney Matthew Schneider.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of wire fraud is punishable by up to 20 years in federal prison, while each money laundering count carries a maximum sentence of ten years.  The false statement charge is punishable by up to five years.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

BOISE – Ubaldo Soto-Diaz, an illegal alien from Mexico, but residing in Portersville, California, was sentenced to 25 years in prison for conspiracy to distribute methamphetamine and heroin, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge David C. Nye also ordered Soto-Diaz to pay a $2,000 fine and serve five years of supervised release following his prison sentence. Soto-Diaz pleaded guilty to the charge on July 18, 2019.

According to court records, Soto-Diaz admitted that between August 28, 2018, and January 28, 2019, he conspired with six other defendants to distribute methamphetamine and heroin. Soto-Diaz was found to be the leader and organizer of an extensive criminal organization that was responsible for distributing high potency methamphetamine, manufactured in Mexico and then transported from California to Idaho. During their investigation of Soto-Diaz and his organization, DEA agents seized over thirty pounds of 100% pure methamphetamine and almost two pounds of black tar heroin.

According to court records, Soto-Diaz had previously been convicted of transporting a controlled substance in 2000 and possession of controlled substances for sale in 2009. He was deported to Mexico on May 17, 2010. He was found to be illegally present in the United States on May 26, 2010, and was convicted of illegal entry. He again illegally returned to the United States and was convicted of possession of controlled substances for sale and unlawful possession of a firearm in 2012. At the time Soto-Diaz conspired to distribute methamphetamine and heroin to Idaho, he was illegally living in Portersville, California.

This case was a result of a joint investigation with Drug Enforcement Administration, Nampa Police Department, Canyon County Narcotics Unit, and Ada County Sheriff’s Office.

This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.

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Earlier today, in federal court in Brooklyn, Maurice Brown, a member of the “Bushwick Crew,” a drug-trafficking enterprise based in Brooklyn and Queens, pleaded guilty before United States District Judge Kiyo A. Matsumoto to participating in a racketeering conspiracy and murdering Gary Lopez and Rudy Superville on March 5, 2013 at an apartment in Brooklyn used by one of crew’s heroin distributors.  Brown is the last of seven defendants to plead guilty to charges in the third superseding indictment.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty pleas.

“As a result of the outstanding work by the Federal Bureau of Investigation, the New York City Police Department and our Office’s prosecutors, seven members of this gang have been brought to justice for the wanton violence they carried out in furtherance of their drug trafficking enterprise,” stated United States Attorney Donoghue.  “We hope this prosecution brings a measure of closure for the victims’ families.”

As detailed in the indictment and other court filings, the Bushwick Crew was a large-scale heroin trafficking organization with connections to Mexican drug cartels.  Various members of the crew armed themselves to escort drug traffickers, forcibly collected drug debts and committed murders and other acts of violence against anyone who interfered with the crew’s operations or offended its members. 

Previously, Luis Lopez and Peter Vasquez pleaded guilty to racketeering conspiracy for their roles in the murders of Gary Lopez and Superville; Tyquan Griem pleaded guilty to racketeering conspiracy and the murder of Kelvin Johnson at a nightclub in Queens; Jaquan Cooper pleaded guilty to brandishing a firearm during a robbery of a barbershop in Queens; Lance Goodwin pleaded guilty to causing the death of Donte Williams by discharging a firearm; and Norman Marrero pleaded guilty to brandishing a firearm during an extortion.  The previous guilty plea proceedings were held before United States District Judge Raymond J. Dearie.

When sentenced, each defendant faces a maximum sentence of life imprisonment. 

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 its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ 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 government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Lindsay K. Gerdes and Andrey Spektor are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit.

Defendant Who Pleaded Guilty Today:

MAURICE BROWN (also known as “Spaz”)
Age: 28
Brooklyn, New York

Defendants Who Have Previously Pleaded Guilty:

JAQUAN COOPER (also known as “J-Gunna”)
Age: 31
Brooklyn, New York

NORMAN MARRERO (also known as “Tito”)
Age: 36
Harrisburg, Pennsylvania

LANCE GOODWIN (also known as “Ty Mucka”)
Age: 30
Brooklyn, New York

TYQUAN GRIEM (also known as “Ty Goon”)
Age: 29
Brooklyn, New York

LUIS LOPEZ (also known as “Lou”)
Age: 37
Brooklyn, New York

PETER VASQUEZ (also known as “Pete”)
Age: 31
Brooklyn, New York

E.D.N.Y. Docket No. 17-CR-390 (S-3) (RJD)

BOISE - James O'Keith Mason, 37, of Mountain Home, Idaho, was sentenced in U.S. District Court to 137 months in prison for distributing five grams or more of pure methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Mason to pay a $2,000 fine and serve 5 years of supervised release following his prison sentence. A federal grand jury indicted Mason on November 15, 2018. Mason pleaded guilty to the charge on July 17, 2019.

According to court records, law enforcement used a confidential informant to purchase methamphetamine from Mason on two separate occasions and to purchase a firearm on a third occasion. Mason has a lengthy criminal history that includes robbery, drug-related offenses, domestic violence, witness intimidation, and burglary. In announcing the sentence. Judge Nye noted that Mason was under the supervision of the Idaho Department of Correction when he distributed methamphetamine and that he had threatened someone with a gun during the same time period.

This case was investigated by Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state, and local agencies, including Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.

This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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.

This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.

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NEWARK, N.J. – Two Irvington, New Jersey, men, one of whom is currently attending the Irvington Fire Academy in order to become a firefighter, have been charged for operating a “mill” for the manufacture of illegal narcotic pills in an Irvington residence, U.S. Attorney Craig Carpenito announced.

Elijah Lee, 27, who was in training to become a firefighter with the Irvington Fire Department, and Immanuel Majerska, 37, were arrested Jan. 30, 2020, and charged with conspiring to distribute methylenedioxymethamphetamine, commonly referred to as “ecstasy,” or “MDMA.” The two defendants made their initial appearance today before U.S. Magistrate Judge Joseph A. Dickson.  Lee was released on bail and Majerska was detained.     

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

The defendants allegedly manufactured MDMA pills in the basement of Lee’s residence. Law enforcement officers recovered two “presses” capable of producing pills from raw ingredients, multiple kilograms of bulk suspected MDMA powder, and numerous pills of suspected MDMA. Law enforcement officers also recovered a loaded firearm at Lee’s residence in a dresser in Majerska’s room. Majerska was in possession of approximately 1,000 suspected MDMA pills. 

The conspiracy charge carries a maximum penalty of twenty years in prison and a $1 million fine.      

This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

U.S. Attorney Craig Carpenito credited special agents of the U.S. Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge James Buthorn; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York, under the direction of Peter C. Fitzhugh,  with the investigation leading to today’s charges. He also thanked the Essex County Sheriff’s Department the Irvington and Union police departments for their assistance.

The government is represented by Assistant U.S. Attorney Andrew Macurdy and Special Assistant U.S. Attorney Keith Travers of the U.S. Attorney’s Office ODETF Unit in Newark.

PITTSBURGH - After deliberating for two hours, a federal jury found Donte Taylor guilty of one count of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.

Taylor, 37, formerly of Duquesne, was tried before Senior United States District Judge David S. Cercone in Pittsburgh, Pennsylvania.

According to Assistant United States Attorney Shanicka L. Kennedy, who prosecuted the case, the evidence presented at trial established that on May 10, 2018, Donte Taylor was on parole. When parole agents went to his house for a routine visit, they smelled marijuana. Agents tested Taylor, and he tested positive for marijuana and cocaine. He also had $540.00 on his person. Parole agents noticed that his girlfriend, Ericka Smith, appeared to be extremely nervous. Parole agents then contacted the local police.

When the police responded, Smith advised that there was a small amount of marijuana in the house and gave verbal and written consent to search. Smith provided a conflicting statement about Taylor’s drug trafficking activities. Smith admitted that it was her house and that it was Taylor’s approved residence with parole.

Officers recovered approximately 279 grams of crack cocaine with a street value of $22,000 to $28,000. They also discovered cocaine, heroin, fentanyl and marijuana, as well as $14,466.00 in a safe, scales and other drug packaging materials.

Judge Cercone scheduled sentencing for June 5, 2020. The law provides for a total sentence of not less 10 years in prison and up to life, a fine not to exceed $8,000,000.00, a term of supervised release of at least eight years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court ordered Taylor to remain in custody.

The Drug Enforcement Administration and the City of Duquesne Police Department conducted the investigation that led to the prosecution of Donte Taylor.

BOSTON – A Springfield man was sentenced today in federal court in Springfield in connection with various fraud schemes.

Talal H. Soffan, 46, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 30 months in prison, five years of supervised release and ordered to pay $573,624 in forfeiture. In February 2019, Soffan pleaded guilty to making false statements to a federally insured financial institution, wire fraud, aggravated identity theft, conspiracy and bank fraud.

In March 2007, Soffan applied for two bank loans totaling $45,000 for his company, All Waste Management LLP. In the process of securing the loans, Soffan concealed his and an associate’s prior felony convictions. After receiving the loans, Soffan then misspent the loan proceeds, defaulted on the loans, and exploited both accounts in connection with a series of credit card bust-out schemes. In those schemes, Soffan defrauded various banks and credit card companies through 27 different accounts obtained in his name, the name of his business, other businesses, and other individuals, resulting in an overall loss of approximately $528,624.

In addition, Soffan conspired with a local real estate broker to defraud various banks relating to foreclosed properties owned by the banks. Soffan sent the broker e-mails containing his company’s genuine bid and false bids from other companies to ensure that his company received contracts to perform repair and maintenance work on the foreclosed properties. In exchange for receiving approximately $75,186 in contracts for his company, Soffan allowed the broker to keep approximately five percent of his company’s invoiced amounts. 

United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office prosecuted the case.