Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on February 11, 2020, a federal grand jury returned a three-count indictment against a couple allegedly involved in drug trafficking and firearms offenses in the Eastern District of Wisconsin. The indictment charged Marquis Townsend (age: 39), and Silena Washington (age 29) each of Glendale, WI. The indictment charged the defendants as follows:

If convicted, Townsend and Washington face the imposition of fines and terms of supervised release in addition to the imprisonment listed above.

According to the indictment, on January 28, 2020, Townsend and Washington possessed marijuana with the intent to distribute the substance. Townsend and Washington also possessed a Kimber Ultra Carry II .45 caliber pistol; a Glock 22. 40 caliber pistol; a Glock 27 .40 caliber pistol; and a Smith and Wesson .380 caliber pistol in furtherance of drug trafficking. Townsend did so despite knowing he could not legally possess firearms.

This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.

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. For more information about Project Guardian, please see https://go.usa.gov/xpBrs  

This case was investigated by the Glendale Police Department.  Assistant United States Bridget J. Domaszek will prosecute the case.

An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

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Former Detroit Police Officer Michael Mosley, age 48, pleaded guilty today before the Honorable George Caram Steeh to bribery for taking $15,000 in cash bribes from a drug trafficker, announced U.S. Attorney Matthew Schneider.

Joining Schneider in the announcement was Steven M. D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Officer Mosley is a nineteen-year veteran of the Detroit Police Department. As stated during Mosley’s guilty plea, in April 2019, Mosley was a member of the Police Department’s Major Violators Unit.  On April 3, 2019, Detroit police officers, including Officer Mosley, searched a drug trafficker’s house pursuant to a search warrant.  The search uncovered two kilograms of heroin, one kilogram of cocaine, and six firearms.  The drug trafficker confessed to owning the three kilograms of drugs to Officer Mosley, and the trafficker signed a confession.  After the April 3 search, Officer Mosley remained in contact with the drug trafficker in an effort to secure the trafficker’s cooperation concerning other criminal activity.

Subsequently, the drug trafficker offered Officer Mosley a cash bribe of $15,000 in exchange for not pursuing criminal charges based on the three kilogram drug seizure.  Officer Mosley agreed to the deal.  On May 2, 2019, Officer Mosley collected $10,000 in cash that the drug dealer left for Mosley in the backyard of an abandoned house in Detroit.  On May 23, 2019, Officer Mosley accepted another $5,000 in cash left for him by the drug trafficker at the abandoned house.  In exchange, Officer Mosley gave the drug trafficker the original copy of his confession. 

In addition to pleading guilty to one count of bribery, Mosley will be forfeiting the $15,000 he took in bribes.

U.S. Attorney Matthew Schneider commended the outstanding work of the FBI in conducting this criminal investigation of a corrupt police officer.

“It’s rare that a police officer commits a crime, but in this case Officer Mosley betrayed his oath as a police officer, and he betrayed the citizens of Detroit and the vast majority of his fellow officers who seek to protect and serve with integrity,” stated United States Attorney Matthew Schneider.  “This prosecution demonstrates that we will not tolerate public officials who abuse their authority and seek to use their power to line their own pockets.”

 “The citizens of Detroit deserve better from their public servants. Wrongdoing by police officers undermines the public's trust and confidence in law enforcement officers who are sworn to defend and uphold the law,” said Special Agent in Charge D’Antuono. “The men and women of the Detroit Police Department are dedicated to serving this community and misconduct by one of its officers is not a reflection of the entire force. However, the FBI will do everything in its power to bring corrupt police officers to justice and to restore faith in the integrity of law enforcement throughout the city.”

The investigation of this case was conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, David A. Gardey, and Shankar Ramamurthy.

PITTSBURGH - A resident of Freedom, Pennsylvania, has been sentenced in federal court to 60 months’ imprisonment and 5 years of supervised release on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.

United States District Judge Joy Flowers Conti imposed the sentence on Adam Hosie, age 25, of Freedom, Pennsylvania.

According to information presented to the court, on July 12, 2018, Hosie possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.

Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.

United States Attorney Brady commended the Federal Bureau of Investigation, the Indiana County District Attorney’s Office, and the Western Pennsylvania Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of Hosie.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

SACRAMENTO, Calif. — After a six-day trial, Jaquorey Rashawn Carter, 24, of Sacramento, was found guilty today of sex trafficking of a child, and sex trafficking by force, fraud, or coercion, U.S. Attorney McGregor W. Scott announced.

“The defendant targeted vulnerable young women and underage girls to work as prostitutes for him on the streets of California cities and inside seedy motels,” U.S. Attorney Scott stated. “Thanks to the thorough work of the investigating agencies, the defendant’s years-long pimping operation has come to an end. For the next several years, he will be in a place where he cannot harm young females.”

“Traffickers see their victims as mere commodities to be controlled and sold. This case illustrates the cycle of violence and exploitation victims often face and traffickers’ brazen disregard for the law,” said FBI Sacramento Field Office Special Agent in Charge Sean Ragan. “The FBI works with its local and state partners to ensure criminals face justice for their actions and victims of trafficking are connected with the support they need to move forward with their lives.”

“Sex trafficking is a monstrous crime. It has no place in our society, let alone near our children,” said California Attorney General Xavier Becerra. “Those who profit from the detestable exploitation of human beings must pay a high price. We owe many thanks to the multi-jurisdictional law enforcement team that successfully investigated and prosecuted this case.”

According to evidence presented at trial, between 2013 and October 2018, Carter targeted vulnerable young women and underage girls to work as prostitutes for him. Carter used a consistent pattern of behavior in recruiting and keeping close association to the women and girls who worked for his financial benefit. As part of Carter’s pimping operation, he put girls and women in motel rooms and had them engage in prostitution in Sacramento, Stockton, Oakland, Sunnyvale, and Santa Ana, in order to make money from their prostitution activity.

Starting in 2013, Carter recruited two 14-year-olds to work as prostitutes for him in Oakland. Ultimately, the girls were returned home to Sacramento, but Carter continued to transport, harbor and maintain one of the underage girls in connection with prostitution activity through 2018.

Evidence presented at trial also showed that Carter has been arrested or contacted by law enforcement on multiple occasions on the streets or in high-crime areas while he was transporting his victims to or from his illegal business opportunities. In September 2018, a federal judge authorized the wiretap of Carter’s cellphone. Sacramento-based task force agents then intercepted calls demonstrating that Carter was actively recruiting, harboring, transporting, and managing several women engaged in prostitution throughout California. During the calls, Carter discussed his pimping operation and his involvement in violence, and he threaten to physically beat one of his victims.

Task force agents identified at least five different women that Carter was either recruiting or actively managing in ongoing prostitution. On Sept. 19, 2018, law enforcement intervened during an intercepted call when Carter described his plan to hurt a woman. At the time of the call, Carter was driving to Oakland with four women in his car. A California Highway Patrol officer conducted a traffic stop and arrested Carter for falsely impersonating someone. A short time later, while out on bail, Carter assisted a fellow pimp who savagely beat a woman inside a car. The victim tried to exit the car, but Carter stood outside the car and attempted to prevent her from escaping.

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice’s Special Operations Unit, and the Sacramento Police Department. The California Highway Patrol, Sacramento Sheriff’s Department, and the Sacramento District Attorney’s Office assisted in the investigation. Assistant U.S. Attorneys Brian A. Fogerty and Jason Hitt are prosecuting the case.

Carter is scheduled to be sentenced on May 4, 2020, by U.S. District Judge William B. Shubb. Carter faces a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison for sex trafficking of a child. Carter also faces a mandatory minimum sentence of 15 years in prison and a maximum statutory penalty of life in prison for sex trafficking by force, fraud, or coercion. Both counts of conviction carry a maximum fine of $250,000. 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.

            WASHINGTON - Moureen Masika, 31, was found guilty on Monday, February 10, 2020, of one count of Financial Exploitation of an Elderly Person or Vulnerable Adult and three counts of Second-Degree Theft after a jury trial.  The incidents were part of a fraud scheme perpetrated by Masika, a home health aide, on her patient, an 88-year-old man with dementia, announced U.S. Attorney Timothy J. Shea.  This trial is the first involving the charge of Financial Exploitation of an Elderly Person or Vulnerable Adult in D.C. since the crime was passed into law in 2016. Sentencing is scheduled for March 9, 2020.

            According to the government’s evidence, over the course of five months in 2018, Masika made 49 trips to CVS during which she obtained over $3,000 in cash using the victim’s debit card.  To maximize the cash obtained, Masika would make multiple transactions back-to-back and request cash back at each transaction.  Her fraud came to an abrupt end when the victim’s family confronted her.  

            In announcing the verdict, U.S. Attorney Shea commended the work of the Metropolitan Police Department, including the Financial and Cyber Crimes Unit, which investigated the case.  He also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Special Assistant U.S. Attorney Jennifer Mika, who is detailed from the Office of the Attorney General for the District of Columbia to handle financial crime cases involving elderly victims; Assistant U.S. Attorneys Beth Kelley and Stephanie Miller; and paralegals Chad Byron and Antoinette Sakamsa. 

            This prosecution is part of the Office’s wider efforts to combat crimes against seniors. In 2018, the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia simultaneously launched initiatives to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. This prosecution marks the first time that the U.S. Attorney’s Office and the Office of the Attorney General have together prosecuted a case of this kind, and this collaboration is continuing.

STATESVILLE, N.C. – U.S. District Judge Kenneth D. Bell sentenced yesterday Ronnie Dean Brown, 36, of North Wilkesboro, N.C., to 121 months in prison on child pornography charges, announced the U.S. Attorney’s Office for the Western District of North Carolina. Brown was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender after he is released from prison.

Ronnie Martinez, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in North Carolina, and Sheriff Chris Shew of the Wilkes County Sheriff’s Office, join the U.S. Attorney’s office in making today’s announcement.

According to filed documents and statements made in court, in September 2018, law enforcement became aware that an individual, later identified as Ronnie Brown, was accessing child pornography online. In October 2018, law enforcement approached Ronnie Brown, who was at Charlotte Douglas Airport on his way to Las Vegas.  Court records show that Ronnie Brown refused to cooperate with law enforcement, and afterwards contacted his wife, Kelly Brown, and instructed her to “get rid of his laptop.”  Kelly Brown did as instructed and gave the laptop to another individual, who later turned it over to law enforcement.

Law enforcement executed a search warrant at Ronnie Brown’s residence and seized a computer and portable storage media.  According to court records, a forensic examination of the seized items revealed that Ronnie Brown possessed more than 4,100 images of children, including infants and toddlers, engaging in sexually explicit conduct.  Some of the child pornography depicted sadistic and masochistic conduct.

On October 3, 2019, Ronnie Brown pleaded guilty to receipt of child pornography. He is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.  Federal sentences are served without the possibility of parole.

Kelly Brown previously admitted to giving her husband’s laptop to another individual according to his instructions, in an attempt to prevent law enforcement from seizing it.  Kelly Brown further admitted that when she followed Ronnie Brown’s instructions, she and her husband were both aware that law enforcement were conducting an investigation into child pornography.  Kelly Brown has pleaded guilty to a federal felony related to her obstruction of the investigation and is currently awaiting sentencing.

HSI and the Wilkes County Sheriff’s Office conducted the investigation.

Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children.  By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

WASHINGTON – A superseding indictment was returned yesterday in federal court in Brooklyn, New York, charging HuaweiTechnologies Co., Ltd. (Huawei), the world’s largest telecommunications equipment manufacturer, and two U.S. subsidiaries with conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO).

The 16-count superseding indictment also adds a charge of conspiracy to steal trade secrets stemming from the China-based company’s alleged long-running practice of using fraud and deception to misappropriate sophisticated technology from U.S. counterparts.

The indicted defendants include Huawei and four official and unofficial subsidiaries — Huawei Device Co., Ltd. (Huawei Device), Huawei Device USA Inc. (Huawei USA), Futurewei Technologies, Inc. (Futurewei) and Skycom Tech Co. Ltd. (Skycom) — as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).^[1]  The new superseding indictment also contains the charges from the prior superseding indictment, which was unsealed in January 2019.

Richard P. Donoghue, United States Attorney for the Eastern District of New York; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; John C. Demers, Assistant Attorney General of the Justice Department’s National Security Division; and Christopher A. Wray, Director, Federal Bureau of Investigation (FBI), announced the charges.

Mr. Donoghue thanked the FBI, Homeland Security Investigations (HSI), U.S. Department of Commerce Office of Export Enforcement (OEE) and the Defense Criminal Investigative Service (DCIS) agents who are investigating this case for their tireless work and dedication.

As revealed by the government’s independent investigation and review of court filings, the new charges in this case relate to the alleged decades-long efforts by Huawei, and several of its subsidiaries, both in the U.S. and in the People’s Republic of China, to misappropriate intellectual property, including from six U.S. technology companies, in an effort to grow and operate Huawei’s business.  The misappropriated intellectual property included trade secret information and copyrighted works, such as source code and user manuals for internet routers, antenna technology and robot testing technology.  Huawei, Huawei USA and Futurewei agreed to reinvest the proceeds of this alleged racketeering activity in Huawei’s worldwide business, including in the United States.

The means and methods of the alleged misappropriation included entering into confidentiality agreements with the owners of the intellectual property and then violating the terms of the agreements by misappropriating the intellectual property for the defendants’ own commercial use, recruiting employees of other companies and directing them to misappropriate their former employers’ intellectual property, and using proxies such as professors working at research institutions to obtain and provide the technology to the defendants.  As part of the scheme, Huawei allegedly launched a policy instituting a bonus program to reward employees who obtained confidential information from competitors.  The policy made clear that employees who provided valuable information were to be financially rewarded.

Huawei’s efforts to steal trade secrets and other sophisticated U.S. technology were successful.  Through the methods of deception described above, the defendants obtained nonpublic intellectual property relating to internet router source code, cellular antenna technology and robotics.  As a consequence of its campaign to steal this technology and intellectual property, Huawei was able to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage.  

When confronted with evidence of wrongdoing, the defendants allegedly made repeated misstatements to U.S. officials, including FBI agents and representatives from the U.S. House Permanent Select Committee on Intelligence, regarding their efforts to misappropriate trade secrets.  Similarly, the defendants engaged in obstructive conduct to minimize litigation risk and the potential for criminal investigations, including the very investigation that led to this prosecution.

The superseding indictment also includes new allegations about Huawei and its subsidiaries’ involvement in business and technology projects in countries subject to U.S., E.U. and/or U.N. sanctions, such as Iran and North Korea – as well as the company’s efforts to conceal the full scope of that involvement.  The defendants’ activities, which included arranging for shipment of Huawei goods and services to end users in sanctioned countries, were typically conducted through local affiliates in the sanctioned countries.  Reflecting the inherent sensitivity of conducting business in jurisdictions subject to sanctions, internal Huawei documents allegedly referred to such jurisdictions with code names.  For example, the code “A2” referred to Iran, and “A9” referred to North Korea. 

Huawei employees also allegedly lied about Huawei’s relationship to Skycom, falsely asserting it was not a subsidiary of Huawei.  The company further claimed that Huawei had only limited operations in Iran and that Huawei did not violate U.S. or other laws or regulations related to Iran.  In fact, the indictment alleges Skycom was Huawei’s unofficial subsidiary that, among other services, assisted the Government of Iran in performing domestic surveillance, including during the demonstrations in Tehran in 2009.

The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The government’s investigation is ongoing.  Individuals with knowledge of misconduct by Huawei, its subsidiaries, employees or agents should contact the FBI’s New York Field Office at 1-800-CALL-FBI.

The investigation is being jointly conducted by the FBI’s New York Field Office, HSI’s New York Field Office, OEE’s New York Field Office and DCIS’s Southwest and Northeast Field Offices.  Agents from the FBI, HSI and OEE offices in Dallas provided significant support and assistance.  The government’s case is being handled by the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the Justice Department National Security Division’s Counterintelligence and Export Control Section (CES). 

Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler and Sarah Evans, MLARS Trial Attorneys Laura Billings and Christian Nauvel and CES Trial Attorneys Thea D. R. Kendler and David Lim are in charge of the prosecution, with assistance provided by Assistant U.S. Attorney Brendan G. King of the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorneys Margaret O’Malley and John Riesenberg of DOJ’s Office of International Affairs.  Additional Criminal Division and National Security Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Northern District of Texas, the Northern District of Illinois, the Eastern District of Texas, the Western District of Washington and the Northern District of California have provided valuable assistance with various aspects of this investigation.

The Defendants:

HuaweiTechnologies Co. Ltd.

Huawei Device Co., Ltd.

Huawei Device USA Inc.

Futurewei Technologies, Inc.

Skycom Tech Co. Ltd.

 E.D.N.Y. Docket No. 18-CR-457 (AMD)

NEW ORLEANS, LOUISIANA – On February 11, 2020, United States District Judge Susie Morgan sentenced GARRETT ROTH, age 27, a resident of Kenner, to fifty-one months in the Bureau of Prisons for being a felon in possession of a firearm, in violation of the Federal Gun Control Act announced U.S. Attorney Peter G. Strasser.

Roth was charged on August 13, 2018 in a one-count bill of information with possessing a Taurus, 9 mm semi-automatic pistol while being an unlawful user of and addicted to heroin.  ROTH will serve 51 months in prison to be followed by three years of supervised release 

This case was brought as 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.

U. S. Attorney Peter Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution is being handled by Assistant United States Attorney David Haller.

                                                                   *    *     * 

AUGUSTA, GA:  A criminal complaint filed in U.S. District Court in Augusta charges two men with using fraudulent and stolen credit cards to steal from hotels and a limousine company.

Aaron Barnes-Burpo, 28, of Crestview, Fla., and Walker Washington, 51, who is listed as homeless, are charged with one count of Conspiracy to Commit Wire Fraud and Aggravated Identity Theft, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.

“Thanks to alert citizens in Augusta who acted on their suspicions, this crime spree across the country came to an abrupt halt in the Southern District of Georgia,” said U.S. Attorney Christine.

The complaint alleges that Barnes-Burpo and Washington organized a group of men and women who portrayed themselves as affiliated with the Roc Nation production company and the hip-hop group Wu-Tang Clan, and used those fictitious representations along with fraudulent and stolen credit cards to rent luxury limousines, including a Rolls-Royce, and defraud hotels of thousands of dollars in goods and services in cities including Atlanta, Macon and Nashville.

The scam unraveled when staff at the Fairfield Inn and Suites in Augusta became suspicious and alerted authorities.

“The FBI would like to thank the staff of the Fairfield Inn in Augusta for their awareness that helped end the run of these alleged fraudsters,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The arrests should serve as a warning that no matter how elaborate fraud schemes are, the FBI is determined to protect American citizens who fall victim to them.”

A criminal complaint contain only charges; defendants are presumed innocent unless and until proven guilty.

The case is being investigated by the FBI and the Richmond County Sheriff’s Office, and is being prosecuted for the United States by Assistant U.S. Attorney Patricia Rhodes.

PORTLAND, Ore.—Timothy Ray Vance, 54, of Salem, Oregon, was sentenced to 90 months in federal prison and five years’ supervised release for distributing large quantities of methamphetamine throughout Marion County.

Vance has a long criminal history dating back to 1983. Vance served more than 20 years in prison after being convicted in Marion County Circuit Court in 1994 on two counts of robbery, two counts of burglary, and one count each of kidnapping and theft.

Two months after completing post-prison supervision, in August 2018, Vance was found to be involved in a large methamphetamine distribution network. By October 2018, investigators discovered the network’s source of supply and at least one informant who revealed they had purchased methamphetamine from Vance on ten different occasions.  A different informant told investigators that on one occasion, Vance sold them one pound of methamphetamine for $3,200.

In February 2019, Salem Police Department executed a search warrant on Vance’s residence. Investigators located 62.7 grams of methamphetamine, $2,780 in cash, drug packaging materials, and two handguns. Vance was placed under arrest and later released.

In March 2019, investigators learned that Vance was dealing methamphetamine out of a Salem hotel room. Officers conducted a traffic stop of Vance after obtaining a search warrant on his vehicle. During the search, they found 443 grams of methamphetamine, $1,500 in cash, and two additional firearms.

On November 11, 2019, Vance pleaded guilty to one count of possession with intent to distribute methamphetamine. As part of his plea agreement, Vance agreed to abandon four firearms used to facilitate his crime.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Salem Police Department. It was prosecuted by Lewis S. Burkhart, Assistant U.S. Attorney for the District of Oregon.

The 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.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty plea of VICTOR PHILLIPS for conspiracy to commit bank bribery.  PHILLIPS pled guilty before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court. 

U.S. Attorney Geoffrey S. Berman said:  “As he admitted in court today, banker Victor Phillips conspired to facilitate the laundering of what he believed were the proceeds of criminal activity.  Thanks to the FBI, Phillips now awaits sentencing for his crime.”

According to the allegations in the Indictment, court filings, and statements made during court proceedings:

Between at least June 2019 and September 2019, PHILLIPS, who was employed at an Atlanta-area branch of a national bank (“Bank-1”), opened bank accounts in the names of shell companies and fictitious persons in exchange for a percentage of fraud proceeds that others laundered through those accounts.  PHILLIPS, in exchange for bribe payments, opened one of these laundering accounts at the behest of a codefendant, who plotted to move approximately $2 million in fraud proceeds through PHILLIPS’s corruptly established account.  PHILLIPS, along with his co-conspirators, were ultimately identified and arrested in the course of a money laundering investigation overseen by the Federal Bureau of Investigation’s (“FBI”) New York Money Laundering Investigation Squad.    

PHILLIPS, 39, pled guilty to one count of conspiracy against the United States, which carries a maximum punishment of five years 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 a judge.  Sentencing is scheduled for June 4, 2020, at 2:00 p.m., before U.S. District Judge William H. Pauley III, to whom the case is assigned.

Mr. Berman praised the outstanding investigative work of the FBI.  

This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.

Bismarck – United States Attorney Drew H. Wrigley announced that two co-defendants have been indicted and detained on federal child exploitation charges. On February 11, 2020 Katie Heidinger of Velva, ND made her initial court appearance on Six Counts of Producing Sexually Explicit Images of Minors and One count of Distribution of Sexually Explicit Images of Minors. Today in federal court, Magistrate Judge Hochhalter ordered that Heidinger be detained without bond, pending trial. Co-defendant Derrick Walker of Minot, ND is charged by the grand jury with the same six counts of production and is also charged in separate count of Receipt of Images Depicting the Sexual Exploitation of Minors. On February 10, 2020, Walker was ordered to be detained, pending trial on the matter. An Indictment is an accusation and notice of charges, and the defendants are presumed innocent until proven guilty.

"The Federal grand jury has issued indictments alleging numerous counts of child sexual exploitation against Katie Heidinger of Velva, ND and Derrick Walker of Minot, ND," said U.S. Attorney Drew Wrigley "and we are preparing to move toward trial and justice for the multiple child victims in this case."

The federal grand jury indictment alleges that Katie Heidinger possessed numerous videos and images depicting the sexual exploitation of minor children "John Doe One", "John Doe Two", "John Doe Three", "John Doe Four", "Jane Doe One", and "Jane Doe Two". Federal and State investigators allege that Katie Heidinger was involved in a romantic relationship with Derrick Walker and that Heidinger produced and distributed the videos and images, using the internet, at Walker’s request. Heidinger was initially arrested and charged in McHenry County, ND, and remains charged there with multiple counts of Gross Sexual Imposition. Walker was arrested and initially charged in Ward County and currently has no state charges pending.

This case was investigated by the McHenry County Sheriff’s Office, Ward County Sheriff’s Office, North Dakota Bureau of Criminal Investigation, and the Department of Homeland Security, Minot Office.

Assistant United Sates Attorney Gary Delorme is prosecuting the case.

JOHNSTOWN, Pa. – A resident of DuBois, Pa. has been sentenced in federal court in Johnstown to 3 years’ probation with 180 days of home detention on his conviction of conversion of government funds, United States Attorney Scott W. Brady announced today.

United States District Judge Kim R. Gibson imposed the sentence on Daniel P. McIntosh, 41. 

According to information presented to the court, from Aug. 1, 2014, to July 31, 2016, McIntosh did receive and convert falsely to his own use a total of $41,529.70, which represents approximately 115 separate Social Security Administration benefit payments made to him and also to him as representative payee for his wife and minor children, to which he or they were not entitled.

Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.

Mr. Brady commended the Social Security Administration, Office of Inspector General for the investigation that led to the successful prosecution of McIntosh.

PROVIDENCE – A Providence woman who admitted to working directly with the local leader of a far-reaching multi-state fraud scheme that defrauded banks, finance companies, car dealerships, and retailers, was sentenced today in U.S. District Court to two years and one day in federal prison.

Yenesia Pujols, 48, worked alongside Octavio Andres Difo-Castro, 29, of Edgewater, N.J., the admitted leader of an organization with roots reaching into the Dominican Republic, that purchased stolen personal identifying information from the Dark Web, including Social Security numbers, and used the information to create fraudulent driver’s licenses, open bank accounts, apply for and receive financing for automobiles, and open retail credit accounts used to purchase clothing, electronic devices, and furniture – some of which was shipped to the Dominican Republic and displayed on Instagram accounts.

At the time of his guilty plea, Difo-Castro admitted that at his direction several individuals opened bank accounts using fraudulent IDs he provided to deposit and withdraw fraudulently obtained funds; to pose as both the seller and the buyer of vehicles to fraudulently secure bank and/or credit union financing from financial institutions in several states; and to obtain retail store credit to make purchases at clothing, furniture, and cellphone retailers in Rhode Island, Massachusetts, Connecticut, and Pennsylvania.

According to information presented to the court, Pujols willingly agreed to play the role of bank and retail store customers by opening bank accounts to be used exclusively for the purpose of depositing fraudulently obtained car loan checks and quickly siphoning off cash, and to pose as customers at Sprint retailers from which she fraudulently obtained numerous high-end smart phones to be sold by Difo-Castro.

Pujols also admitted to obtaining and using stolen personal identifying information of an American citizen, including her Social Security number and date of birth, to apply for and gain employment. Pujols did so despite claims to Social Security that she was disabled and unable to work, all the while fraudulently collecting Social Security disability benefits.

Additionally, Pujols admitted to using stolen personally identifying information and fraudulent documents provided by Difo-Castro to improve her personal appearance through cosmetic surgery.

Pujols pleaded guilty on October 15, 2019, to aggravated identity theft, conspiracy to commit wire fraud, wire fraud, conspiracy to commit bank fraud, and Social Security fraud.

At sentencing today, United States District Court Chief Judge John J. McConnell, Jr., imposed a sentence of 24 months and one day imprisonment, 3 years’ supervised release, and ordered Pujols to pay restitution totaling $86,144, announced United States Attorney Aaron L. Weisman, Stephen Marks, Special Agent in Charge of the U.S. Secret Service, and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.

Difo-Castro pleaded guilty on September 19, 2019, to one count each of conspiracy to commit wire fraud and conspiracy to access device fraud, two counts of aggravated identity theft, and nineteen counts of wire fraud. He is scheduled to be sentenced on March 17, 2020.

The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Zachary A. Cunha.

The investigations were led by the U.S. Secret Service, with the assistance of the Social Security Administration, Office of the Inspector General/Office of Investigations.

United States Attorney Aaron L. Weisman acknowledges and thanks the United States Postal Inspection Service and East Providence, Seekonk and Mansfield Police Departments for their assistance in the investigations.

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Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced two MS-13 gang members, Jose Alberto Sibrian Garcia, a/k/a Chango, age 28, and Carlos Hernandez Diaz, a/k/a Positivo, age 29, both of Silver Spring, Maryland, to 27 years each in federal prison, followed by five years of supervised release, on a federal racketeering charge related to their participation in a violent racketeering conspiracy, specifically MS-13, including murders.  Hernandez Diaz was sentenced today and Sibrian Garcia was sentenced yesterday.

The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Office; Chief Edward G. Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief Timothy J. Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

“MS-13 members are committing horrifying acts of violence in Maryland.  We must not allow these criminals to ravage our communities, spreading fear in their wake,” said U.S. Attorney Robert K. Hur.  “Federal, state, and local law enforcement will use all the tools at our disposal to arrest and prosecute gang members who prey on our neighbors.  We will not rest until we dismantle this organization to make Maryland safer.”

“Today’s sentence takes out a small part of the plague that has spread throughout our communities. And while it means these defendants will be off the streets for decades, our work is not done,” said Jennifer Boone, Special Agent in Charge of the Baltimore Field Office of the FBI. “Together, working with our civic and community partners, the law enforcement community will be relentless in our pursuit of these gang members until our streets are safe from the scourge of MS-13.”

“MS-13 perpetuates senseless violence in our communities,” said HSI Baltimore Special Agent in Charge John Eisert. “Through coordination with our local and federal partners, domestically and abroad, we will continue in our mission to disable and dismantle MS-13.”

MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other Central American countries.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland.  From 2016 and 2017, respectively, Sibrian Garcia and Hernandez Diaz were members and associates of the Fulton Locotes Salvatrucha clique of MS-13.

At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons.  To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence.  MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”

MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members.  Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position.  One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible. 

According to their plea agreements, Sibrian Garcia and Hernandez Diaz conspired with other MS-13 members and associates to engage in racketeering activity including murders, conspiracies to commit murder, attempted murders, extortion, robbery, and drug trafficking, in order to further the interests of the gang.

Attempted Murder in Wheaton Specifically, in July 2016, another MS-13 gang member identified Victim 9 as a suspected rival gang member and directed Sibrian Garcia and other MS-13 members to arrange to lure Victim 9 to a secluded area in Wheaton Park in order to murder him, however, Victim 9 refused to go to the secluded area.  After that, another MS-13 member found Victim 9 on the street and shot him.  Victim 9 survived.

Murder in Wheaton Sibrian Garcia also admitted that in March 2017, he and other MS-13 gang members brought Victim 13 from Annapolis to Wheaton Regional Park in Wheaton, Maryland, where other MS-13 gang members had dug a grave and gathered weapons.  When Victim 13 arrived, Sibrian Garcia and other MS-13 gang members attacked him with a machete and knives, killing him.  Victim 13’s body was then dismembered and buried in the grave.  In September 2017, investigators recovered Victim 13’s body from the grave in Wheaton.  As detailed in the plea agreement, the medical examiner found that the cause of death was homicide.  The body had suffered numerous blunt and sharp force traumas, the victim’s head had been severed, and his heart had been removed.        

Murder in Frederick As detailed in Hernandez Diaz’s plea agreement, in April 2017, MS-13 gang members found Victim 14 in Silver Spring, Maryland, and called Hernandez Diaz and others to confirm that Victim 14 was a rival gang member.  After receiving confirmation that Victim 14 was a rival gang member, they arranged with other gang members to identify a place in Frederick, Maryland where the victim could be killed and contacted other gang members to arrange to transport Victim 14 to Frederick.  Victim 14 was transported by MS-13 members to Frederick City Watershed off Gambrill Park Road in Frederick, where they had dug a grave and gathered weapons.  When Victim 14 arrived, some gang members hit him with a tree branch and then Hernandez Diaz and other gang members attacked him with a machete and knives until he was dead.  Victim 14’s body was then dismembered and buried in the grave.  Victim 14’s remains were found in June 2017. 

Assaults in Wheaton According to his plea agreement, on June 14, 2017, Sibrian Garcia and other MS-13 gang members were at Wheaton Regional Park in Wheaton, Maryland when they saw Victim 15 and Victim 16, who they suspected were rival gang members.  Sibrian Garcia and other gang members found Victims 15 and 16 in a bathroom and forced them out at knife-point.  Sibrian Garcia and the other gang members hit Victims 15 and 16 with branches, fists, and feet and talked about killing them with the knife.  When bystanders approached, Sibrian Garcia and the other gang members ran away.  The victims’ cell phones were stolen.  Both victims were transported to the hospital for their injuries.

The defendants admitted that the murders, attempted murder and assault of these victims was intended to maintain and increase the status of MS-13 and allow members to maintain or increase their status within the gang.

Drug Distribution Finally, as stated in their plea agreements, members of the Fulton clique, including Sibrian Garcia and Hernandez Diaz, also conspired to distribute marijuana.  As a part of that conspiracy, gang members would obtain bulk quantities of marijuana and then break it up for distribution.  At least a portion of the proceeds from the drug sales would go to the gang to further its objectives.  It was reasonably foreseeable to Sibrian Garcia and Hernandez Diaz that the conspiracy would distribute at least five kilograms of marijuana.

A total of 29 defendants have been charged in this case with participating in a racketeering conspiracy and/or other crimes related to their association with MS-13, including 18 defendants charged in the fifth superseding indictment filed on October 21, 2019.  A total of 13 defendants have pleaded guilty to crimes related to their participation in MS-13 gang activities.

Anyone with information about MS-13 is encouraged to provide their tips to law enforcement.  The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know.  You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE. 

United States Attorney Robert K. Hur commended the FBI; HSI; the Frederick Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance.  Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark, Catherine K. Dick, and Matthew DellaBetta, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

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          SANTA ANA, California– A federal grand jury has charged three top administrators of a Philippines-based church with overseeing a labor trafficking scheme that forced church members to solicit donations for a bogus charity after the defendants illegally obtained visas and other immigration documents that allowed the workers to enter and remain in the United States.

          The one-count indictment returned by the grand jury late Wednesday alleges a conspiracy to commit a series of offenses, including trafficking with respect to forced labor, document servitude, immigration fraud and marriage fraud.

          The three defendants were arrested last month after being named in a criminal complaint that alleged a conspiracy to commit immigration fraud. Today’s indictment expands the scope of the alleged scheme and includes new details about the immigration fraud portion of the scheme.

          The core allegations of the case are that representatives of the church – the Kingdom of Jesus Christ, The Name Above Every Name (KOJC) – obtained visas for church members to enter the U.S. by claiming, for example, they would be performing at musical events. But once the church members arrived in the United States, they were required to surrender their passports and work long hours as “FTWs” (full-time workers), who solicited donations for a church non-profit called the Children’s Joy Foundation USA (CJF). While the workers raised funds by telling donors their money would benefit impoverished children in the Philippines, the indictment alleges that most or all of the money raised was used to finance KOJC operations and the lavish lifestyles of church leaders.

          While some KOJC workers knew they were entering the U.S. to be fundraisers, the indictment alleges “other KOJC workers were unaware of the actual purpose until they were forced…to solicit on the streets nearly every day, year-round, working very long hours, and often sleeping in cars overnight, without normal access to over-the-counter medicine or even clothes.”

          The defendants confiscated the victims’ passports and other immigration documents “to prevent and restrict…KOJC workers’ liberty to move and travel in order to maintain the labor and services of KOJC workers, some of whom were and had been a victim of a severe form of trafficking,” according to the indictment.

          The three defendants charged in the indictment are:

• Guia Cabactulan, 59, the lead KOJC administrator in the United States who maintained direct communication with KOJC leadership in the Philippines;
• Marissa Duenas, 41, who allegedly secured the passports immediately after workers entered the U.S. and handled fraudulent immigration documents for KOJC workers; and
• Amanda Estopare, 48, who allegedly was in charge of tracking and reporting the money raised in the U.S. to KOJC officials in the Philippines.

          All three defendants – who were arrested on January 29 and remain in federal custody – are scheduled to be arraigned on the indictment on February 20 in United States District Court in Santa Ana.

          As part of the long-running scheme, the three defendants kept productive workers in the U.S. by obtaining student visas or by arranging sham marriages with KOJC workers who were U.S. citizens, the indictment alleges. To create the illusion of legitimate marriages, Duenas allegedly possessed ATM cards to show immigration officials that workers in the sham marriages had joint bank accounts. Furthermore, Cabactulan and Duenas possessed wedding rings for KOJC workers to use during their fraudulent marriage ceremonies, according to the indictment. Immigration records summarized in the criminal complaint indicate there were 82 marriages involving KOJC administrators and FTWs over the past two decades.

          When authorities searched the KOJC compound in Van Nuys on January 29, Cabactulan and Duenas possessed approximately 72 Filipino passports, seven United States passports, and one Ukrainian passport that belonged to other people, according to the indictment, which also notes that Duenas possessed four male wedding rings and three female wedding rings in an office at the KOJC compound.

          The search also revealed that Duenas possessed a file titled “Traitor” that contained information on KOJC members who fled the church, the indictment alleges.

          An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

          The conspiracy charge alleged in the indictment carries a statutory maximum penalty of five years in federal prison.

          As part of the ongoing investigation, the FBI is encouraging potential victims or anyone with information about KOJC activities to contact investigators. Those with information are asked to call the FBI’s Los Angeles Field Office at (310) 477-6565. Individuals may also contact the FBI through its website at https://www.fbi.gov/tips.

          The ongoing investigation into KOJC is being led by the FBI, which is receiving substantial assistance from Homeland Security Investigations, U.S. Citizenship and Immigration Service’s Fraud Detection and National Security Unit, the U.S. Department of State’s Diplomatic Security Service, and IRS Criminal Investigation.

          This matter is being prosecuted by Assistant United States Attorneys Daniel Ahn and Jake Nare of the Santa Ana Branch Office.

PHILADELPHIA – United States Attorney William M. McSwain announced that Fred Arena, 41, of Salem, New Jersey, was sentenced to six months’ imprisonment and two years’ supervised release by United States District Court Judge John R. Padova for making false statements to government agents.

Arena, who was an employee of a federal contractor at the Philadelphia Navy Yard and as such was required to obtain a federal security clearance, lied to obtain the clearance. He also subsequently lied to federal investigators who asked him about his answers to questions on the security clearance paperwork. He was arrested and detained in October 2019, and pleaded guilty to the charges in December 2019.

On January 10, 2019, Arena completed the standard Form SF-86 to obtain a federal security clearance for his employment. On that form, he was required to disclose whether he had ever been a member of an organization that used (or advocated the use of) force or violence to prevent others from exercising their constitutional rights. He falsely answered that he had not. In fact, Arena was an avowed member of Vanguard America, a white supremacist group that fits that description. His membership in Vanguard America and his participation in their activities were demonstrated by his many admissions and photos on social media, including events surrounding the 2017 ‘Unite the Right’ rally in Charlottesville, Virginia. On the same application, Arena was asked whether he had had property repossessed within the past seven years. He falsely answered that he had not. In fact, Arena had previously defaulted on a car loan, and his car was repossessed within the seven year window.

As part of his sentence, the Court specifically ordered that Arena shall, during the period of supervised release, be barred from membership and participation in any organization that advocates or practices unlawful acts of force or violence to discourage others from exercising their rights under the United States Constitution or any state of the United States.

“Lying on federal security clearance forms and to government agents are very serious matters,” said U.S. Attorney McSwain. “Further, no employee working for the federal government, being paid with taxpayer dollars, has any business being a member of a white supremacist group or espousing white supremacist views. Under the terms of today’s sentence, Arena’s activities will be closely monitored by the Court and Probation after he finishes his jail term in order to prevent him from engaging in new criminal behavior that may violate the civil rights of others and endanger the public.”

“Fred Arena lied about being a white supremacist to land a security clearance and government job he never should have had,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “When the FBI questioned him about his background, he continued this pattern of deception. There must be serious consequences for actively deceiving federal agents. Otherwise, critical investigations would grind to a halt, hobbling our justice system and giving criminals and terrorists the upper hand.”

The case was investigated by the Federal Bureau of Investigation – Joint Terrorism Task Force, the Defense Counterintelligence and Security Agency, the Gloucester County Prosecutor’s Office, the Salem County Prosecutor’s Office, the New Jersey State Police, the Camden County Police Department, the Naval Criminal Investigative Service (NCIS), and the New Jersey Office of Homeland Security and Preparedness, with assistance from the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney for the Eastern District of Pennsylvania Joseph LaBar and Assistant United States Attorney for the District of New Jersey Martha Nye.

          LOS ANGELES– The former president of a Colton-based labor union has been found guilty by a jury of 14 felony charges for stealing nearly $800,000 from the union’s health plan fund, which he used to pay for personal expenses including legal bills and a car loan for his son’s Ford Mustang Shelby GT500.

          John S. Romero, 73, of Loma Linda, was found guilty late yesterday afternoon of one count of conspiracy, 12 counts of theft in connection with health care, and one count of making a false statement to a government agency. United States District Judge Virginia A. Phillips scheduled an April 27 sentencing hearing, at which time Romero will face a statutory maximum sentence of 130 years in federal prison.

          According to evidence presented at his five-day trial, Romero appointed himself president of United Industrial Services Workers of America (UISWA) and the trustee of the UISWA health care plan. Money paid into the plan was supposed to be used exclusively for health care benefits to its participants. Instead, Romero stole the union’s health plan funds for the benefit of himself and his immediate family.

          In furtherance of his scheme, Romero appointed a sham trustee who had no prior experience with unions. He also actively misled the third-party administrators of the health plan into making improper payments from the health plan.

          From 2008 to 2014, Romero embezzled health plan funds to pay a $110,000 personal civil judgment against himself and his son, John J. Romero, 55, also of Loma Linda. He also embezzled $40,000 to pay criminal defense lawyers who represented Romero in a separate case. Romero funneled more than $310,000 to himself by disguising them as rent payments on two properties he owned and held under a shell company. In addition, he stole more than $300,000 in union health care plan money to make “salary” payments to his family. He also used plan funds to pay off $25,000 loan on his son’s Ford Mustang.

          Romero also was convicted of filing a false financial report with the U.S. Department of Labor in which he concealed the existence of more than $100,000 in union receipts and disbursements that Romero held in a secret bank account and from which he made regular payments to his mistress.

          Following the guilty verdicts, Judge Phillips ordered Romero into custody, citing the danger he posed in light of evidence that Romero had attempted to intimidate witnesses who testified against him at trial.

          Romero advanced his scheme by appointing his son the secretary and treasurer of the union, and his ex-wife, Evelyn Romero, 71, the UISWA president and trustee after 2010. At this time, Romero was serving a two-year federal prison sentence related to making false statements to federal officials made while he was president of a different labor union. Romero’s son, ex-wife, and daughter, Danae Romero, 42, of Loma Linda, have pleaded guilty to criminal charges in the current matter. They are scheduled to be sentenced in the coming months.

          This case was investigated by the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; and the U.S. Department of Labor, Office of Labor Management Standards.

          This matter is being prosecuted by Assistant United States Attorneys Susan S. Har and Aaron B. Frumkin of the General Crimes Section.

SOUTH BEND - Maurice Sylvester, age 32, of South Bend, Indiana, was sentenced before United States District Court Judge Jon E. DeGuilio for conspiracy to possess with intent to deliver over 500 grams of methamphetamine and over 100 grams of heroin, announced United States Attorney Thomas L. Kirsch II.

Mr. Sylvester was sentenced to 130 months in prison followed by 5 years of supervised release. 

According to documents in this case, Mr. Sylvester was charged along with two others with conspiracy to distribute methamphetamine and heroin.  Law enforcement found Mr. Sylvester and over four pounds of methamphetamine in a home when they served a search warrant in South Bend.  Mr. Sylvester also had over $1200 of currency hidden on his body that had been used to purchase drugs.  Phone records, text messages and fingerprints all linked Mr. Sylvester to the drug business.  Mr. Sylvester has previously been convicted of six felonies, most involving drugs. 

Kenneth Sanders, a co-defendant, was previously sentenced to 120 months imprisonment followed by five years of supervised release.  A third defendant awaits sentencing. 

This case was investigated by the Bureau of Alcohol, Tobacco and Firearms with the assistance of the LaPorte County Drug Task Force and the Drug Enforcement Administration.  The case was handled by Assistant U.S. Attorneys Frank Schaffer and Kimberly Schultz.

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PITTSBURGH - A McKees Rocks, Pennsylvania resident has pleaded guilty in federal court to violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.

Joseph Alexander, 38, pleaded guilty to two counts before Senior United States District Judge David Stewart Cercone.

In connection with the guilty plea, the court was advised that September 11, 2018, members of the FBI Western District of Pennsylvania Opioid Task Force executed a federal search warrant at a residence on Saint John Street, in McKees Rocks, Pennsylvania. Mr. Alexander was located throwing objects from the rear window of the residence. Agents responded to the backyard of the residence and recovered quantities of heroin, fentanyl, acetyl fentanyl, tramadol, and N–Ethylpentylone. Agents then searched the residence and recovered five firearms, an assortment of ammunition, and a bulletproof vest.

Judge Cercone scheduled sentencing for June 17, 2020 at 11:00 a.m. The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine not to exceed $1250,000 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 Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, McKees Rocks Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.