LAS VEGAS, Nev. — A Las Vegas resident who admitted to committing nine bank robberies after escaping from a correctional facility was sentenced today to 15 years in prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.

William Etheridge, 57, pleaded guilty in October 2019, to 11 counts of bank robbery, carjacking, and escape. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Etheridge to three years of supervised release and ordered him to pay $18,397.90 in restitution.

According to court documents, on May 18, 2017, Etheridge escaped from the Northwest Regional Reentry Center, a contracted correctional facility of the Federal Bureau of Prisons in Oregon, where he was in custody for a federal bank robbery conviction. Shortly after his escape, between June 2, 2017 and July 19, 2017, Etheridge robbed nine banks in Oregon and Washington, and attempted to rob another bank in Oregon.

On July 25, 2017, Etheridge, who was armed, stole $18,120 from a credit union in Las Vegas. He demanded that one of the tellers leave the credit union with him, then carjacked a vehicle with two victims inside. At Etheridge’s request, the victims dropped him off at a motorcycle dealership to purchase a motorcycle for use as a getaway vehicle. Law enforcement arrested Etheridge while he was at the dealership.

This case was the product of an investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Nicholas Dickinson prosecuted the case.

Etheridge was investigated in three federal jurisdictions for his crimes: the District of Nevada, the Western District of Washington, and the District of Oregon.

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Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a superseding federal indictment charging EDWIN CORTORREAL, a/k/a “Crazy Ed,” with the October 27, 2006, murder of Kelly Diaz in the Washington Heights neighborhood of New York, and other crimes.  CORTORREAL, 33, was extradited to the United States from the Dominican Republic to face the charges in the superseding indictment.  CORTORREAL was presented and arraigned today before U.S. District Judge Valerie E. Caproni, to whom the case is assigned.

U.S. Attorney Geoffrey Berman said:  “As alleged, the defendant shot and killed Kelly Diaz in his home.  We thank the FBI and the NYPD for their outstanding work investigating this terrible murder.  We will continue our efforts with our law enforcement partners to prosecute such senseless acts of violence.”

NYPD Commissioner Dermot Shea said:  “Edwin Cortorreal was brought to justice as a result of unrelenting investigative work by NYPD officers and FBI agents in partnership with our law enforcement colleagues here and overseas and the outstanding team of prosecutors assembled by U.S. Attorney Berman. I applaud the efforts to bring justice in this case.”

According to the superseding indictment and statements made in related court filings and proceedings[1]: 

The Hot Boys were a crew of professional home invaders active in Washington Heights and elsewhere from at least 2006 through 2017.  On October 27, 2006, CORTORREAL and four others used a hydraulic pump to silently force open the door of Diaz’s apartment.  CORTORREAL and two others then burst into Diaz’s home, subdued Diaz and his wife, and forced Diaz onto the ground.  CORTORREAL, armed with a gun, stood over Diaz while the rest of the crew ransacked the apartment.  As the crew began to leave, CORTORREAL shot and killed Diaz.

*                      *                     *

CORTORREAL is charged with conspiring to commit racketeering through the commission of various criminal acts, including murder, in violation of Title 18, United States Code, Section 1962(d); murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(1); conspiracy to distribute narcotics, in violation of Title 21, United States Code, Section 846; use of a firearm, resulting in death, during a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(j); and other uses of firearms during a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c).  Each of these crimes carries a maximum term of life in prison, and murder in aid of racketeering carries a mandatory minimum term of life in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the FBI and the NYPD.  Mr. Berman also thanked the Dominican authorities, the Office of International Affairs of the Justice Department’s Criminal Division, and the United States Marshals Service for their assistance in the extradition.

The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Hagan Scotten and David W. Denton Jr. are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless proven guilty.

United States Attorney Erica H. MacDonald today announced a federal indictment charging YURIDIA HERNANDEZ LINARES, 36, with conspiracy to commit visa fraud. LINARES made her initial appearance earlier today before Magistrate Judge Tony N. Leung in U.S. District Court in Minneapolis, Minnesota.

According to the allegations in the indictment, between August 20, 2019, and September 30, 2019, LINARES conspired with other individuals to defraud the United States by making false statements to fraudulently obtain U Nonimmigrant Visas (“U-Visas”), for four individuals. Victims of certain criminal activities that occur in the United States may be eligible to apply for and obtain a U Visa. A victim who obtains a U Visa may subsequently apply to U.S. Citizenship and Immigration Services (USCIS) to adjust their status to become a lawful permanent resident of the United States.

According to the allegations in the indictment, LINARES devised and participated in a detailed scheme, whereby the four individuals each falsely reported to the Eden Prairie Police Department that they were victims of robberies committed in Eden Prairie, Minnesota. LINARES directed the individuals to file a police report stating that they were a victim of a fabricated assault, and to corroborate each other’s account of the assault. LINARES used a box cutter or other sharp object to cut the four individuals before they filed their false report with the Eden Prairie Police Department.  In exchange, LINARES collected a $2,000 fee from each individual.

This case is the result of an investigation conducted by Homeland Security Investigations and the Eden Prairie Police Department.

Assistant U.S. Attorney Angela M. Munoz is prosecuting the case.

Defendant Information:

YURIDIA HERNANDEZ LINARES, 36

City of residence unknown

Charges:

• Conspiracy to commit visa fraud, 1 count

###

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PITTSBURGH - A Westmoreland County physician has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of conspiracy to violate the Anti-Kickback Statute, conspiracy to distribute fentanyl, health care fraud, and conspiracy to distribute phentermine hydrochloride and diethylpropion, United States Attorney Scott W. Brady announced today.

The four-count Indictment, returned on January 16, and unsealed on January 30, named Thomas Whitten, 69, of Greensburg, PA, as the defendant.

According to the Indictment, from May 2013 to November 2015, in the Western District of Pennsylvania, Whitten conspired to receive kickbacks from Insys Therapeutics in exchange for prescribing fentanyl, in the form of Subsys, to his patients, and that Whitten conspired to distribute fentanyl, in the form of Subsys. The Indictment also alleges that from May 2013 to March 2017, Whitten committed health care fraud by causing insurers to pay for unlawful Subsys prescriptions. Finally, the Indictment alleges that from November 2017 through December 12, 2019, Whitten conspired to distribute phentermine hydrochloride and diethylpropion.

The law provides for a sentence of not less than five years in prison and a maximum of 40 years in prison, a fine not to exceed $5,000,000, or both. 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 Cindy K. Chung and Karen Gal-Or are prosecuting this case on behalf of the government.

The Drug Enforcement Administration, Federal Bureau of Investigation, Department of Health and Human Services, and the Pennsylvania State Attorney General’s Office, conducted the investigation that led to the prosecution of Thomas Whitten. An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

The investigations leading to the filing of charges in these cases were conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: 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, 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 and the Pennsylvania Bureau of Licensing.

RALEIGH– United States Attorney Robert J. Higdon, Jr. announced that today in federal court, a consent judgment and permanent injunction was entered requiring a North Carolina pharmacy, FARMVILLE DISCOUNT DRUG, INC., as well as its owner and pharmacist-in-charge, ROBERT L. CROCKER, to pay $600,000.00 in civil penalties and to never again dispense opioids or other controlled substances.  Under the Court’s order, CROCKER will also surrender his license to practice pharmacy and never seek its renewal, and FARMVILLE DISCOUNT DRUG will permanently surrender its registration with the U.S. Drug Enforcement Administration (DEA).CONSENT JUDGMENT AND PERMANENT INJUNCTION

The consent order resolves a complaint filed by the United States alleging that FARMVILLE DISCOUNT DRUG and CROCKER repeatedly filled prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act.  The United States alleged that, for years, defendants ignored well-known “red flags” of drug diversion and drug-seeking behavior when filling prescriptions for controlled substances.  These prescriptions often involved well-known, highly addictive, and highly abused painkillers such as oxycodone, hydrocodone, hydromorphone, and methadone, along with other “potentiator” drugs—drugs that heighten the euphoric effects of opioids, like diazepam (i.e., Valium), alprazolam (i.e., Xanax), and zolpidem (i.e., Ambien).  Those potentiators also increase the risk of abuse and overdose. 

As detailed in the complaint, many prescriptions raised multiple red flags, but CROCKER and FARMVILLE DISCOUNT DRUG failed to take the required steps to resolve those red flags and ensure the prescriptions’ legitimacy before filling them.  The red flags ignored by CROCKER and FARMVILLE DISCOUNT DRUG were numerous:

• CROCKER and his pharmacy filled prescriptions for dangerous, highly abused prescription-drug cocktails for long-distance patients who saw a doctor an hour away and lived an hour away;
• The pharmacy filled hundreds of opioid prescriptions for multiple members of the same family;
• The pharmacy filled prescriptions for a prescriber that CROCKER knew had been cut off from other pharmacies;
• The pharmacy filled controlled-substance prescriptions for patients who hopped from doctor to doctor or pharmacy to pharmacy.

When other employees expressed concern to CROCKER about FARMVILLE DISCOUNT DRUG’s practices, he dismissed them, saying that if a doctor wrote the prescription, the pharmacy would fill it. 

For example, as set forth in the complaint, FARMVILLE DISCOUNT DRUG dispensed thousands of high-strength opioid pills to Individual A, a person who lived approximately 60 miles from FARMVILLE DISCOUNT DRUG.  A doctor located approximately 53 miles from the pharmacy wrote individual A’s prescriptions.  Approximately 77% of the prescriptions Individual A filled at FARMVILLE DISCOUNT DRUG were for 30-mg oxycodone tablets, the highest strength immediate-release oxycodone tablet available.  At one point, FARMVILLE DISCOUNT DRUG dispensed four thirty-day supplies of 30-mg oxycodone tablets (720 tablets) for Individual A in just 66 days.  And to make matters worse, FARMVILLE DISCOUNT DRUG often dispensed oxycodone to Individual A in combination with other opioids (such as 5-mg or 10-mg methadone) or muscle relaxers (such as 350-mg carisoprodol), increasing the risk of abuse or overdose.  For example, although the Centers for Disease Control and Prevention urge caution when an individual receives an opioid dosage greater than 90 morphine milligram equivalents (MME) per day, at times, FARMVILLE DISCOUNT DRUG dispensed oxycodone and methadone pills to Individual A totaling more than 300 MME per day, before adding the additional depressant effects of the muscle relaxer. 

During the same period, FARMVILLE DISCOUNT DRUG also filled more than thirty prescriptions for Individual B, who shared the same last name as Individual A and who resided at the same address as Individual A for at least a portion of the time they were both filling prescriptions at FARMVILLE DISCOUNT DRUG.  Notably, approximately 97% of the prescriptions that FARMVILLE DISCOUNT DRUG filled for Individual B were for 30-mg oxycodone tablets—the same drug and strength that Individual A was receiving. 

The claims resolved by the consent order remain allegations only, and there has been no judicial determination or admission of liability.  Rather, the court adopted the parties’ agreement to resolve the case without further litigation and entered a consent order ensuring, among other things, that CROCKER and FARMVILLE DISCOUNT DRUG will never dispense opioids or other controlled substances again.

“The Department of Justice has made combating the opioid crisis one of its top priorities,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division.  “We will work hand-in-hand with the DEA and other law enforcement partners to ensure that pharmacies that fail to uphold their obligation to dispense controlled substances lawfully will be held accountable.”

“Opioid addiction and abuse have devastated communities across our nation, and eastern North Carolina is no exception,” said United States Attorney Robert J. Higdon.  “As the last line of defense between these dangerously addictive substances and our communities, pharmacists and pharmacies play a critical role in stemming the tide of the opioid epidemic.  The turn-a-blind-eye approach to pharmacy practice on display at Farmville Discount Drug did just the opposite; it made matters worse.  Today’s order demonstrates our office’s unwavering commitment to hold all those who had a role to play in this crisis—from distributors, to prescribers, to the pharmacies who ultimately put the pills in patients’ hands—responsible for their actions.”

Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “DEA Diversion Investigators will continue to aggressively pursue the unlawful dispensing practices of healthcare providers. These providers should be in compliance with a set standard of rules and regulations. This civil suit and permanent injunction shows that DEA, its law enforcement partners and the U.S. Attorney’s Office are committed to making sure that healthcare providers are abiding by its mandates.”

The investigation and prosecution of this case were a joint effort by the U.S. Drug Enforcement Administration, the U.S. Attorney’s Office for the Eastern District of North Carolina, and the Consumer Protection Branch of the U.S. Department of Justice.  Assistant United States Attorneys C. Michael Anderson and John E. Harris and Consumer Protection Branch Trial Attorney James W. Harlow represented the government.

***

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

LAREDO, Texas – A 32-year-old Laredo man has entered a guilty plea to conspiring to transport undocumented aliens, announced U.S. Attorney Ryan K. Patrick. 

On Nov. 12, 2019, Roy Andy Olivares arrived at the Border Patrol Checkpoint located on U.S. Highway 83 north of Laredo. There, a K-9 alerted to the possible presence of concealed humans in the trailer. Authorities conducted a search and found 27 undocumented aliens, three of whom were minors.

At a hearing today before U.S. Magistrate Judge Diana Song Quiroga, Olivares admitted he knowingly attempted to smuggle the undocumented aliens past the checkpoint.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Olivares faces a possible 10-year prison term as well as a possible $250,000 maximum fine.

He has been and will remain in custody pending that hearing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Michael Makens is prosecuting the case. 

United States Attorney Erica H. MacDonald today announced the guilty plea of OLGA MARINA FRANCO DEL-CID, 36, to one count of illegal re-entry after removal and one count of false representation of social security account number. FRANCO DEL-CID, who was charged on December 12, 2019, entered her guilty plea earlier today before Judge Susan Richard Nelson in U.S. District Court, in St. Paul, Minnesota. A sentencing date has been set for June 11, 2020.

According to the defendant’s guilty plea and documents filed in court, FRANCO DEL-CID was previously removed from the United States on May 4, 2016, following a felony conviction on August 8, 2008, in Lyon County, for criminal vehicular homicide. On November 26, 2019, FRANCO DEL-CID was found in the United States in violation of the previous removal. FRANCO DEL-CID also admitted to falsely representing a social security number on an Employment Eligibility Verification Form I-9.    

This case is the result of an investigation conducted by U.S. Immigration and Customs Enforcement. 

Assistant U.S. Attorney Laura M. Provinzino is prosecuting the case.

Defendant Information:

OLGA MARINA FRANCO DEL-CID, 36

Inver Grove Heights, Minn.

Charges:

• Illegal re-entry after removal, 1 count
• False representation of social security account number, 1 count

###

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LAREDO, Texas – A 34-year-old citizen of Mexico has pleaded guilty to importing a large quantity of marijuana into the United States, announced U.S. Attorney Ryan K. Patrick.

On Nov. 30, 2019, Juan Antonio Hernandez-Zapata attempted to enter into the United States in a commercial tractor trailer at the World Trade Bridge in Laredo. There, a K-9 alerted to the possible presence of narcotics. Following a subsequent x-ray examination, authorities located 214 bundles in his trailer which tested positive for marijuana.

The drugs weighed approximately 5,360 pounds (approximately 2.5 tons) and have a street value of over $1 million.

Sentencing will be set before U.S. District Judge Diana Saldana at a later date. At that time, Hernandez-Zapata faces up to life in federal prison and a possible $10 million maximum fine.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Jennifer Day is prosecuting the case.

Orlando, Florida – A federal jury has found Tanya Firmani (47, Jacksonville) guilty of one count of conspiracy to commit bankruptcy fraud and six counts of bankruptcy fraud. Firmani faces a maximum penalty of five years’ imprisonment on each count. Her sentencing hearing is scheduled for April 21, 2020.

According to testimony and evidence presented at trial, Firmani conspired with others in a foreclosure rescue/bankruptcy fraud scheme. Firmani solicited homeowners whose mortgages were in default and offered to rescue their homes from foreclosure. To prevent the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal Housing Administration (“FHA”), and multiple financial institutions from lawfully foreclosing on homeowners’ properties, Firmani filed or caused the filing of fraudulent bankruptcy petitions in the homeowners’ names just prior to the scheduled foreclosure sale dates. The fraudulent bankruptcies triggered the Bankruptcy Code’s automatic stay provision, preventing Fannie Mae, Freddie Mac, FHA, and the financial institutions from conducting foreclosure sales and obtaining the titles to the properties. The fraudulent bankruptcy petitions enabled Firmani to collect fees and allowed her co-conspirators to obtain ill-gotten commissions for short-sales causing losses to creditors. 

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the U.S. Department of Housing and Urban Development – Office of Inspector General. The Office of United States Trustee for the Middle District of Florida provided substantial investigative assistance. The case is being prosecuted by Special Assistant United States Attorney Chris Poor.

WHEELING, WEST VIRGINIA – Rolland Kwame Owens, of Steubenville, Ohio, has admitted to his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
 
Owens, also known as “Buster,” age 30, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Owens admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.

Owens faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated. 

The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

U.S. Magistrate Judge James P. Mazzone presided.

WHEELING, WEST VIRGINIA – Shannon Terill Loveless, of Steubenville, Ohio, has admitted to his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
 
Loveless, age 42, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Loveless admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.

Loveless faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated. 

The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

U.S. Magistrate Judge James P. Mazzone presided.
 

John H. Durham, United States Attorney for the District of Connecticut, announced that DOMINQUE PERRY, 24, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for stealing a federal law enforcement vehicle and equipment.  Judge Chatigny also ordered Perry to serve four months of home confinement while on supervised release.

According to court documents and statements made in court, on January 29, 2019, Perry and another individual stole a 2016 Honda Accord from a residence in Newington.  The vehicle was the property of a federal law enforcement agency, and contained fully loaded firearm magazines for multiple weapons, ammunition, handcuffs and other restraints, a ballistic vest and its component parts, and raid jackets.  After stealing the vehicle, Perry drove the Accord to a location in Bloomfield where he and his associate removed the vehicle’s tires and rims.  Perry and his associate subsequently sold the tires and rims, and advertised the sale of loaded firearm magazines, ammunition, ballistic vest and other items.

The vehicle and its tires and rims have been recovered, but some of the law enforcement equipment that was in the car has not been located.  Judge Chatigny ordered Perry to pay $1,560 in restitution for the missing equipment.

Perry was arrested on a federal criminal complaint on February 6, 2019, and was released on bond.  He has been detained in state custody on unrelated auto theft charges since August 2019.

On October 18, 2019, Perry pleaded guilty in federal court to one count of theft of government property.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Newington and Hartford Police Departments.  The case is being prosecuted by U.S. Attorney Durham.

SAN DIEGO ­– Bing Han and Lei Zhang pleaded guilty in federal court today for operating unlicensed money transmitting businesses. Their guilty pleas are believed to be the first in the United States for a developing form of unlawful underground financial institution that transfers money between the United States and China, thereby circumventing domestic and foreign laws regarding monetary transfers and reporting, including United States anti-money laundering scrutiny and Chinese capital flight controls. 

Special Agents from Homeland Security Investigations, IRS Criminal Investigation Las Vegas Financial Crimes Task Force, and the Drug Enforcement Administration led the investigation into Han’s and Zhang’s financial operations. As admitted in the plea agreements entered today before U.S. Magistrate Judge William V. Gallo, Han and Zhang would collect U.S. dollars (in cash) from various third-parties in the United States and deliver that cash to a customer, typically a gambler from China who could not readily access cash in the United States due to capital controls that limit the amount of Chinese yuan an individual can convert to foreign currency at $50,000 per year. Upon receipt of the U.S. dollars, the customer (i.e., the gambler) would transfer the equivalent value of yuan (using banking apps on their cell phones in the United States) from the customer’s Chinese bank account to a Chinese bank account designated by defendant Han or Zhang. For facilitating these transactions, Zhang and Han were paid a commission based on the monetary value illegally transferred. 

U.S. Attorney Robert S. Brewer, Jr. said, “The United States stands vigilant against the constantly evolving ways in which individuals and organizations seek to operate outside the conventional financial system. Violating United States anti-money laundering laws not only endangers the integrity of the global financial system, but doing so hinders the ability of law enforcement officers to confront criminal conduct including money laundering and narcotics trafficking.”

Han and Zhang further admitted today that they were regularly introduced to customers by casino hosts, who sought to increase the gambling play of the casino’s customers. By connecting cash-starved gamblers in the United States with illicit money transmitting businesses, like those operated by Han and Zhang, the casinos increased the domestic cash play of their China-based customers. All a gambler needed was a mobile device that had remote access a China-based bank account. As a result, Han and Zhang managed to transmit and convert electronic funds in China into hard currency in the United States; all while circumventing the obstacles imposed both by China’s capital controls, and the anti-money laundering scrutiny imposed on all United States financial institutions. For their efforts, the casino hosts often received a cut of Han’s or Zhang’s commission.  

“This case demonstrates that those who attempt to use underground or unregulated money transfer systems cannot evade detection and punishment,” said Cardell T. Morant, acting Special Agent in Charge for HSI San Diego. “HSI and our domestic and foreign partners will continue to work together aggressively to investigate and prosecute those who seek to hide their involvement in transnational crime by employing such international money laundering schemes.”

“Criminals keep trying to find ways to circumvent our financial system by laundering money,” said Tara Sullivan, Special Agent in Charge of IRS Criminal Investigation Las Vegas. “Unfortunately for Han and Zhang, the IRS Criminal Investigation Las Vegas Financial Crimes Task Force was relentless in seeking out and disrupting their underground banking network and will continue to work with our law enforcement partners to uphold anti-money laundering laws”.

“Although Mr. Han and Mr. Zhang did not admit to transacting narcotics proceeds in their unlicensed money transmitting businesses, we know that drug trafficking organizations are willing to use a variety of businesses to launder proceeds from the sales of drugs,” said DEA Special Agent in Charge John W. Callery. “DEA and our outstanding partners will continue to investigate illicit financial transactions and anyone who may operate businesses that stand to profit from illegal drug sales.”

U.S. Attorney Brewer commended the diligence and dedication of Assistant U.S. Attorneys Daniel Silva and Mark W. Pletcher, the prosecutors on this case.  Sentencing for Mr. Han is scheduled to occur on May 1, 2020 before Hon. Janis L. Sammartino. Sentencing for Mr. Zhang is scheduled to occur on May 4, 2020 before Hon. William Q. Hayes. Han and Zhang both face a maximum of 5 years in prison.  

DEFENDANTS                                              Case Numbers 20-CR-369-JLS (Han)

Case Number  20-CR-370-WQH (Zhang)                                               

Bing Han                                                         Las Vegas, NV                       Age: 44

Lei Zhang                                                       Las Vegas, NV                       Age: 40

SUMMARY OF CHARGES*

Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960

Maximum penalty: Five years in prison and $250,000 fine

AGENCIES

Homeland Security Investigations

IRS Criminal Investigation Las Vegas Financial Crimes Task Force

Drug Enforcement Administration

*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that MICHAEL MAGNALDI, a former Pelham resident and an owner and operator of a Bronx-based tax preparation business, pled guilty to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count of subscribing to a false tax return for tax year 2016.  MAGNALDI pled guilty before U.S. Magistrate Judge Paul E. Davison. 

U.S. Attorney Geoffrey S. Berman said:  “After serving in the New York City Department of Finance for 15 years, Michael Magnaldi betrayed the public’s trust by engaging in a years-long pattern of preparing false returns for clients and falsely understating his own income the same year he bought a $705,000 home in Pelham.  Magnaldi’s fraudulent conduct undermined the government’s ability to fund its mandates and cost the government $476,184 in tax revenue.  As we enter tax filing season, Magnaldi now stands convicted of two counts of criminal tax charges and awaits sentencing for his crimes.”

IRS-CI Special Agent-in-Charge Jonathan D. Larsen said:  “As the tax season heats up, this is an important reminder to taxpayers to beware of unscrupulous tax return preparers. Fraudulent tax return preparers harm taxpayers, legitimate businesses, and the American public. IRS-CI is steadfast in its commitment to ending such tax fraud and today’s guilty plea shows the serious consequences for violating this nation’s tax laws.”

According to the allegations contained in the Information to which MAGNALDI pled guilty, MAGNALDI’s plea agreement, and statements made in court:           

MAGNALDI has years of audit experience in the New York City Department of Finance.  Since at least 2014, MAGNALDI owned and operated MGM Tax Solutions, a tax preparation business located in the Bronx, New York. 

As charged in Count One of the Information, for the 2014 through 2017 tax years, MAGNALDI prepared for clients 37 false Forms 1040 containing, among other false information, false Schedule D capital losses, false Individual Retirement Account (“IRA”) contribution deductions, and false Education Tax credits.  MAGNALDI unsuccessfully attempted to conceal his role in preparing these fraudulent tax returns by not listing his or any name as the return preparer, to make it seem as if the returns were self-prepared.  In response to IRS correspondence audits, MAGNALDI caused additional false forms to be sent to the IRS, in an attempt to substantiate the false losses, deductions, and credits claimed on the tax returns.  The total tax loss for the 37 false individual income tax returns of MAGNALDI’s clients is $232,767. 

As charged in Count Two of the Information, in addition to the false filings prepared on behalf of his clients, MAGNALDI also falsely understated his own and his business’s income on their 2016 tax returns, the same year he bought a roughly $705,000 home in Pelham.  Specifically, MAGNALDI falsely understated income on MGM Tax Solutions’ 2016 Form 1120S, which understated flow-through income on MAGNALDI’s 2016 Form 1040.  The tax loss for MAGNALDI’s understatement of flow-through income is $243,417.

The total tax loss resulting from both schemes is $476,184.  

*                      *                      *

MAGNALDI, 54, formerly of Pelham, New York, and currently living in St. Augustine, Florida, pled guilty to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count of subscribing to a false tax return for tax year 2016, each of which carries a maximum sentence of three years in prison.  As part of the plea agreement, MAGNALDI has agreed to pay restitution to the IRS in the amount of at least $476,184 plus interest and penalties.  Sentencing is scheduled for May 8, 2020, at 10:00 a.m., before U.S. District Judge Vincent L. Briccetti.

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 the judge.

Mr. Berman praised the outstanding work of IRS Criminal Investigation in this case.

This case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorney David R. Felton is in charge of the prosecution.

MARTINSBURG, WEST VIRGINIA – Alan Williams, of Hillsboro, Virginia, was sentenced today to 327 months incarceration for producing child pornography, U.S. Attorney Bill Powell announced.

“The production of child pornography is a heinous act and victims our most vulnerable—our children. The sentence is warranted and demonstrates our commitment to aggressively prosecuting these crimes,” said Powell.

Williams, age 55, pled guilty to one count of “Production of Child Pornography by Person Having Custody or Control” on September 2019. Williams admitted to permitting a minor to engage in sexually explicit conduct to produce child pornography to be shared in February 2019 in Jefferson County.

Williams was also ordered to pay $30,000 in restitution to the victim in this case.

Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Department of Homeland Security Investigations investigated. 

Chief U.S. District Judge Gina M. Groh presided.

Daniel Davis, 44, a former major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty by a jury yesterday in federal court for his participation in the beating of an inmate who was handcuffed, shackled, and not resisting and for failing to intervene to stop his subordinates from participating in the same beating. In a previous trial in January 2018, Davis was convicted of conspiring with other officers to cover up the beating by devising a false cover story, submitting false reports documenting that cover story, tampering with witnesses, and lying under oath. Davis was also previously convicted of this beating in November 2018, but was granted a new trial based on juror misconduct.

Four other officers—former LSP Captains James Savoy, John Sanders, and Scotty Kennedy, and former Sergeant Willie Thomas—have all previously pleaded guilty for their roles in the beating and cover up.  At Davis’s trial, Captains Sanders and Kennedy testified for the government and described the abuse and the extensive cover up.

After hearing testimony over the course of three days, the jury convicted Davis of willfully depriving the inmate of his right to be free from cruel and unusual punishment. The evidence showed that Davis initiated the beating by yanking the inmate’s leg chains, causing the inmate to fall face-first onto the concrete breezeway. At that point, Davis and the other officers punched, kicked, and stomped on the inmate, leaving the inmate with a dislocated shoulder, a hematoma, a collapsed lung, and broken ribs. 

“The Constitution and its Bill of Rights protect all people in our nation from unlawful abuse by the government, and the Department of Justice will continue to prosecute officers who willfully violate the Constitution by abusing their power over those in custody,” said Attorney General Eric Dreiband for the Civil Rights Division. “This officer violated his oath and the law, and the Department of Justice will not tolerate this kind of criminal misconduct by correctional officers.”

U.S. Attorney Brandon Fremin stated, ““Corrections officers are charged with the duty of protecting the public, not abusing those who have been lawfully incarcerated.  This district contains several penal institutions, and this should serve as a warning to those who would abuse their power that federal, state, and local law enforcement agencies will relentlessly pursue those who violate the public trust.  I commend all of the agencies responsible for this conviction, and want to thank them for their partnership in this important matter.”

“Correctional officers have an obligation to protect inmates serving their sentences as ordered by the court,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “Daniel Davis abused his authority by inflicting physical harm upon an inmate that was restrained and non-combative.  His actions are a disgrace to all correctional officers who serve ethically and continue to maintain high moral standards throughout our correctional facilities. I commend the men and women of the FBI’s Baton Rouge Resident Agency Office, Louisiana Office of the State Inspector General, and the Department of Justice Civil Rights trial attorneys for their commitment to uphold the constitution and protect all Americans.”

“This is a just verdict,” said Louisiana Inspector General Stephen Street. “We cannot and will not tolerate the abuse of the considerable power afforded corrections officers. Whenever it does occur, it is critical to hold offenders criminally accountable in order to protect the integrity of the system. The jury did exactly that with Mr. Davis, and it was worth the time and effort to obtain this result. Thanks again to our federal partners at the FBI and DOJ.”

No date has been set for Davis’s sentencing. He faces a maximum penalty of five years of imprisonment on the conspiracy and perjury counts, 10 years of imprisonment on the excessive force count, and 20 years of imprisonment on each of the remaining obstruction counts.

This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General.  It was prosecuted by Trial Attorneys Zachary Dembo and Anita Channapti of the Civil Rights Division’s Criminal Section.  Trial Attorney Christopher J. Perras of the Civil Rights Division and Assistant U.S. Attorney Frederick A. Menner Jr., of the Middle District of Louisiana also assisted in the case.

NORFOLK, Va. – A Norfolk man was sentenced today to 20 years in prison for distributing fentanyl, and for carrying and possessing a firearm during multiple drug-trafficking crimes.

According to court documents, in January 2019, Jermaine Curtis Parker, 36, a five-time felon, sold pure fentanyl to an undercover police officer six times, although Parker marketed the drugs as heroin. During at least three of those deals, he was armed with a 9mm handgun.

After the sixth purchase, ATF agents and police officers executed search warrants on three of Parker’s properties and recovered an AR pistol, an AR-type rifle, and other handguns. Distribution amounts of marijuana, cutting agents, and drug-packaging materials for heroin were also found at these residences. One of the handguns had been reported stolen during a vehicle theft in Norfolk. Parker was arrested outside one of these properties after engaging in a standoff with the police during which he refused to leave the residence. He later admitted to using the delay to hide one of his guns in the HVAC system.

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.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William B. Jackson prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-141.

SACRAMENTO, Calif. — Eric Friccero, 29, of Arbuckle, pleaded guilty today to possessing with intent to distribute a controlled substance, U.S. Attorney McGregor W. Scott announced.

According to court documents, Fricerro, operating under the name “BudgetBudsExpress,” distributed marijuana to customers throughout the United States through darkweb marketplaces. On Jan. 31, 2019, law enforcement officers searched Friccero’s residence and found marijuana that was offered for sale on the darkweb, along with bitcoin and cash.

This case is the product of an investigation by the Northern California Illicit Digital Economy Task Force (NCIDE), composed of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and IRS Criminal Investigation. The NCIDE Task Force is a federal task force focused on targeting all forms of darkweb and cryptocurrency activity in the Eastern District of California. Assistant U.S. Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.

Friccero is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Aug. 17. Friccero faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

An armed carjacker who led police on a wild chase across Northeast Dallas was sentenced today to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Austin David Reed, 27, pleaded guilty in September to carjacking and brandishing a firearm during a crime of violence.

According to plea papers, Mr. Reed admitted that while armed with a pistol, he used force and violence to steal a 2006 Acura in February 2019.  

Law enforcement encountered Mr. Reed, who was wearing a bullet proof vest, at a hotel room in Dallas after receiving about a domestic disturbance.

According to an indictment, Mr. Reed stated he was “not going down like this,” and fled the scene, running through a wooded area and into a nearby neighborhood, where he carjacked the Acura.

He then led police on a high-speed chase, crashing the car through a neighborhood gate in an attempt to reach the road.  After wrecking the Acura on a light pole, Mr. Reed exited the vehicle and ran into a nearby home. Inside, he brandished a knife and demanded car keys.  When one of the home’s occupants confronted Mr. Reed with a firearm, he fled through the garage.

The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Ryan Raybould prosecuted the case. U.S. District Judge Samuel A. Lindsay handed down the sentence.

A man who conspired to distribute methamphetamine while possessing guns was sentenced January 31, 2020, to more than 11 years in federal prison.

Matthew Guthrie, 34, from Fort Dodge, Iowa, received the prison term after an August 15, 2019, guilty plea to one count of conspiracy to distribute methamphetamine and one count of possession of firearms in furtherance of a drug trafficking crime.

At the guilty plea, Guthrie admitted that from January 2019 through April 16, 2019 he and others distributed more than 500 grams of methamphetamine in the Fort Dodge area.  On three separate occasions Guthrie distributed a total of more than 100 grams of pure methamphetamine to an individual cooperating with law enforcement.  During a later search of Guthrie’s residence, law enforcement seized four guns (two of which were loaded), methamphetamine, drug paraphernalia, scales, a drug ledger, and other items indicative of drug distribution. Law enforcement later seized two more guns in a consent search.

Guthrie was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Guthrie was sentenced to 135 months’ imprisonment.  He must also serve a 4-year term of supervised release after the prison term.  There is no parole in the federal system.  Guthrie is being held in the United States Marshal’s custody until he can be transported to a federal prison.

This case was brought as part of Project Safe Neighborhoods (PSN).  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 is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Iowa Division of Narcotics Enforcement, Webster County Drug Task Force, Carroll County, Iowa Sheriff’s Office, and the Iowa Division of Criminalistics Laboratory. For more information about Project Guardian, please see https://www.justice.gov/ag/page/file/1217186/download.

The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Division of Narcotics Enforcement, Webster County Drug Task Force, Carroll County, Iowa Sheriff’s Office, and the Iowa Division of Criminalistics Laboratory.   

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 19-3019.  Follow us on Twitter @USAO_NDIA.