PITTSBURGH - A resident of Lower Burrell, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute a mixture of fentanyl and tramadol, United States Attorney Scott W. Brady announced today.

Amber Doller-Smith, age 33, pleaded guilty to one count before United States District Judge Nicholas Ranjan.

In connection with the guilty plea, the court was advised that on September 13, 2018, officers from Lower Burrell and New Kensington Police Departments stopped Doller-Smith’s SUV for reckless and erratic driving. During the stop, the officers smelled the odor of burnt marijuana emanating from Doller-Smith’s car. A canine unit was summoned to the scene. The canine examined on the exterior and interior of the vehicle and alerted on a purse situated on the front seat. The officers searched the purse and discovered a number of pills and a bankcard bearing Doller-Smith’s name. Based on this discovery, the officers decided that a frisk of Doller-Smith’s person was warranted. Since all of the officers at the scene were males, a female officer from a neighboring jurisdiction was dispatched to conduct the frisk. While the officers and Ms. Doller-Smith were waiting for the female officer to arrive, Ms. Doller-Smith informed the canine’s handler that she had heroin concealed in her bra. After the female officer arrived, Doller-Smith surrendered the drugs to her. Laboratory analysis revealed that the substance consisted of a mixture of fentanyl and tramadol and had a net weight of 46.53 grams.

Judge Ranjan scheduled sentencing for June 9, 2020 at 10:00 am. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court took the government’s request that Doller-Smith’s be revoked under advisement.

Assistant United States Attorney Michael Leo Ivory is prosecuting this case on behalf of the government.

The Drug Enforcement Administration, the Lower Burrell Police Department, and the New Kensington Police Department conducted the investigation that led to the prosecution of Doller-Smith.

CAMDEN, N.J. – A Camden woman was sentenced today to 46 months in prison for accessing a protected computer without authorization, stealing money from her employer and then laundering the proceeds of her theft, U.S Attorney Craig Carpenito announced.

Dilcia Mercedes, 38, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of unauthorized access of a computer with intent to defraud and one count of money laundering. Judge Bumb imposed the sentence today in Camden federal court.

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

From April 2014 to May 2017, Mercedes worked for a mortgage lender as a payment processor and had access to the company’s computer system. She discovered that some escrow checks were returned to the company as undeliverable. Mercedes admitted that she would monitor those funds by checking monthly reports to see if the funds were ever claimed. If the money was not claimed, Mercedes recruited various family members and friends to allow her to use their bank accounts. With that information, Mercedes used her family members’ and friends’ identities to open reloadable debit/credit accounts. She accessed the company’s computer system and made it appear as if the customer requested that the money be sent via wire transfer into the fraudulent accounts. After creating the request, Mercedes then accessed the company’s computer and approved the transfer using a co-worker’s login and password.

Mercedes caused approximately 580 fraudulent wire transfers, totaling more than $2 million, from her company’s bank account to bank accounts and reloadable debit/credit accounts controlled by Mercedes’ relatives, friends or associates. She then used the money to pay personal expenses.

In addition to the prison term, Judge Bumb sentenced Mercedes to three years of supervised release and ordered her to pay $2,087,697 in restitution.

U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Wyatt Achord, and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Carroll, with the investigation leading to today’s sentencing.

The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.

Defense counsel: Michael Kahn Esq., Cherry Hill, New Jersey

            CONCORD – Marvin Morrison, 37, of Nashua, pleaded guilty in federal court to participating in a conspiracy to distribute crack cocaine, United States Attorney Scott W. Murray announced today.

            According to court documents and statements made in court, Morrison was a member of a drug trafficking organization that distributed crack cocaine and other drugs to various customers in the Nashua area.

            Morrison is scheduled to be sentenced on May 13, 2020. 

            In addition to Morrison, six defendants in this case have pleaded guilty and are awaiting sentencing.  Another defendant, Donald Johnson, was sentenced to 42 months in prison.  Three other defendants are awaiting trial.

            “Drug trafficking destroys lives and damages the quality of life in Nashua and communities throughout New Hampshire,” said U.S. Attorney Murray.  “Stopping the distribution of crack cocaine and other illegal drugs requires the close cooperation of law enforcement at all levels. Working together, we can break up the networks that funnel these dangerous substances into our state. I commend the FBI Safe Streets Task Force and Nashua Police Department for their excellent work.”

            “Marvin Morrison’s guilty plea, and those of his co-conspirators, should show others pushing drugs for ruthless organizations that they, too, will fall when the FBI and our law enforcement partners dismantle their trafficking trade,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The citizens of Nashua deserve to be safe, healthy, and free of criminals making a living by putting them at risk of addiction and in some cases, death.”

            This matter was investigated by the Federal Bureau of Investigation and the Nashua Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Anna Krasinski.

            This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF).  The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.

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          SANTA ANA, California– A Long Beach man was sentenced today to 272 months in federal prison for leading a crew that committed 13 robberies of Verizon stores across Southern California and Arizona, netting approximately $340,000 worth of smartphones and other merchandise.

          Zachary David Wade, 42, was sentenced by United States District Judge David O. Carter, who ordered him to pay $360,236 in restitution. Wade pleaded guilty in March 2019 to conspiracy to interfering with commerce by robbery, attempted interference with commerce by robbery, and brandishing a firearm in furtherance of a crime of violence.

          Between July 2017 and February 2018, Wade planned, organized and supervised the armed robberies of Verizon stores in Tarzana, Torrance, Fullerton, Long Beach, Corona, San Pedro, Corona del Mar, and the Arizona cities of Tucson and Glendale.

          Wade selected which Verizon stores would be robbed and instructed his co-conspirators on how the robberies should occur, including identifying entrance and exit routes. He also provided equipment such as duffle bags and loaded firearms, which his co-defendants used during the robberies.

          Wade also exclusively determined how much each robbery participant would get paid. The typical robbery netted tens of thousands of dollars’ worth of smartphones and other merchandise, which Wade later sold to a buyer in Glendale, California.

          On January 31, 2018, Wade planned and organized the robbery of a Verizon retailer in Tucson, Arizona. He was arrested the next day in Glendale, California while attempting to sell the stolen smartphones and other merchandise for cash.

          Eight of Wade’s co-defendants have pleaded guilty to felony conspiracy, robbery, and firearms charges. They are: Daniel Joseph Smith, 31, of Long Beach; Sean Keith Rivers, Jr., 26, of Long Beach; Marques Alphonse Petty-Wright, 32, of Long Beach; Randall Lee Tate, Jr., 31, of Long Beach; Andre Dierre Stovall II, 25, of Long Beach; Drae Tamar Wright, 28, of Long Beach; Sylvester Edwards, Jr., 30, of Lancaster; and Jeffrey Kevin Duran, 51, of Bellflower.

          Tate was sentenced in September 2018 to 51 months in federal prison. In September 2019, Petty-Wright was given a two-year federal prison sentence. The other defendants are expected to be sentenced in the coming weeks.

          Francisco Javier Neri, 32, of Van Nuys, a former employee of an authorized Verizon retailer in Tarzana, pleaded guilty to a federal robbery charge in December 2019. Neri admitted in his plea agreement that he conspired with Wade to rob his former employer, Verizon Tarzana. Neri is scheduled to be sentenced on April 6.

          This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

          This case was prosecuted by Assistant United States Attorneys Scott D. Tenley and Daniel S. Lim of the Santa Ana Branch Office.

TRENTON, N.J. – A Monroe County, Pennsylvania, man today admitted that he conspired to distribute more than one kilogram of heroin as part of a conspiracy responsible for distributing significant quantities of heroin and cocaine in and around the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced.

Guy Jackson, 47, of Effort, Pennsylvania, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Jackson also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine.

Also today, Jackson’s wife, Lashawn Mealing, 48, of Manchester, New Jersey, (formerly of Effort, Pennsylvania), pleaded guilty before Judge Martinotti to an information charging her with one count of obstructing and attempting to obstruct justice with respect to the charges against Jackson and others, while Mealing was herself on federal pretrial release in the present case.

In November 2018, Jackson, Mealing, and 13 others were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Mealing and Jackson are the 10th and 11th defendants to plead guilty. Defendant Deberal Rogers has been indicted.

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

From May 2017 to November 2018, the defendants and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Jackson regularly obtained large quantities of heroin and cocaine for further distribution from co-defendant Gregory Gillens. The complaint alleged that Mealing also engaged in the conspiracy to distribute these narcotics. Gillens previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on June 2, 2020.

Members of the conspiracy sold the narcotics to other conspirators, distributors, sub-dealers, and end-users. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid.

Following the filing of the complaint in November 2018, Mealing obstructed justice and attempted to do so by orchestrating, at Jackson’s request, the break-in of a rental vehicle that had been used as part of the narcotics trafficking conspiracy and the removal of evidence of the narcotics offense from the rental vehicle.

The heroin conspiracy count to which Jackson pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. If accepted by the court at the time of sentencing, Jackson’s plea agreement would result in Jackson serving a stipulated total sentence between 12 and 17½ years in prison. Sentencing is scheduled for June 23, 2020.

The obstruction of justice while on federal pretrial release count to which Mealing pleaded guilty carries a maximum potential penalty of 30 years in prison, and a maximum fine of $250,000. Sentencing is scheduled for June 23, 2020.

Jackson has been in custody since his arrest on November 28, 2018.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff's Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Acting Special Agent in Charge Tara McMahon; the New Jersey State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.

The charges and allegations against the remaining four defendants are merely accusations and they are presumed innocent unless and until proven guilty.

Defense counsel:
Jackson: Lorraine S. Gauli-Rufo Esq., Verona, New Jersey
Mealing: David E. Schafer Esq., Princeton, New Jersey

A superseding indictment and criminal complaint were unsealed today in federal court in Brooklyn charging 11 members of the 5-9 Brims, a violent set of the Bloods street gang, with crimes related to their participation in a criminal enterprise that made money through narcotics trafficking and financial scamming, and maintained its power through acts of violence, including murder.  The arraignments and initial appearances of six defendants arrested today are scheduled for this afternoon before United States Magistrate Judge Vera M. Scanlon. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the superseding indictment.

“The 5-9 Brims is a violent criminal organization that has terrorized residents of Brooklyn and Queens by committing brutal acts of violence in public places, trafficking narcotics on the streets and defrauding victims through financial schemes,” stated United States Attorney Donoghue.  “This Office is working closely with our federal and local partners to dismantle criminal street gangs and prosecute their members to the fullest extent of the law.”  Mr. Donoghue thanked Homeland Security Investigations, New York, and the New York City Department of Investigation for their work on the case.

“These violent street gangs simply want to make money with as little effort as possible, which is why they’re venturing into unique criminal territory for gangs such as credit card fraud while maintaining their tried and true drug trafficking and murder activity,” stated FBI Assistant Director-in-Charge Sweeney.  “The work our FBI New York Metro Safe Streets Task Force is doing is extremely important to the communities where these gangs are terrorizing people.  Those people don’t deserve to fear bullets flying by their homes while they sleep, or seeing people killed in the streets.  They deserve peaceful neighborhoods and safe places to live.”

“The members of the 5-9 Brims are alleged to have engaged in a host of illegal activity including acts of violence and murder,” stated ATF Special Agent-in-Charge DeVito.  “Thanks to great coordination and leveraging of resources with our local, state and federal partners these individuals will be brought to justice. I would like to thank the United States Attorney’s Office for their diligent work in prosecuting this case.

“Today’s takedown highlights our relentless work in stopping the violence carried out by large, established gangs and their ruthless offshoots. I commend our detectives, and federal partners, for their sustained focus on this case until all the major defendants could be arrested,” stated NYPD Commissioner Shea.

According to the indictment and other court filings, the 5-9 Brims is a set of the Bloods street gang that operates in Brooklyn, Queens, Manhattan, the Bronx and elsewhere.  Gang members have committed acts of violence, including murder, robbery and assault, and engaged in drug-trafficking and fraud.  Between January 2012 and December 2019, the defendants committed crimes to further the interests of the gang, including earning money for the gang’s members, and enhancing the gang’s position with respect to rival criminal organizations. 

During the charged period, the 5-9 Brims were feuding with a rival faction of the 5-9 Brims, known as the “Real Ryte,” whose members also operated in Brooklyn.  The feud led to a series of violent confrontations and, as alleged, during this period several members of the 5-9 Brims conspired to murder members of Real Ryte.  Defendant Marvin Pippins, a 5-9 Brims member, allegedly shot and killed Sean Peart, a Real Ryte member, on December 19, 2015 in broad daylight while the victim was sitting in his car in Bedford Stuyvesant, Brooklyn. 

On August 15, 2018, members of the 5-9 Brims carried out a violent assault against a bartender at Angels night club in Flushing, Queens, who had not shown proper respect for another member of the gang.  Defendant Yonette Respass, who was serving a sentence in a federal prison at the time, commissioned her younger female members, referred to as “drops,” to “pop that bottle” on the bartenders, stating “I want hands put on them.  I don’t even want no talking.”  That night, Defendants Jeffrey Bush, Louis Love, Rodolfo Zambrano and three of Respass’s “drops” met at Angels where they lured one of their bartender targets across the bar, and, while holding her by the hair, beat her head and threw a bottle at her. Bush recorded the assault on his cell phone, and the video was sent to the gang member on behalf of whom Respass allegedly ordered the attack.

Throughout the period charged in the superseding indictment, members of the gang supplemented their illegal drug business by committing numerous financial frauds, including  possession and use of stolen identities, fraudulent checks and access devices such as credit cards and bank account information.

Defendants Jeffrey Bush, Tyshawn Atkins, Louis Love, Marvin Pippins, James Sease, Montel Shuemake and Rodolfo Zambrano are charged in the superseding indictment with racketeering conspiracy for agreeing to commit crimes on behalf of the gang, including drug trafficking, identification and access device fraud, as well as multiple acts involving murder.  Defendant Marvin Pippins is also charged with murder in-aid-of racketeering in a retaliatory act of gang-related violence for killing Sean Peart; Marvin Pippins, James Sease and Montel Shuemake are charged with conspiring to murder additional members of a rival faction of the gang.  Defendants Jeffrey Bush, Louis Love, Rondolfo Zambrano, India Lane and Yonette Respass are charged with conspiracy to commit assault in-aid-of racketeering.  A number of the defendants are variously charged with narcotics and firearms-related offenses.  Pippins is a fugitive.

Two additional 5-9 Brims members, Jose Battle and Brian Jackson, were arrested on a complaint charging them with financial fraud.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. 

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Jennifer M. Sasso, Drew G. Rolle and Nicholas J. Moscow are in charge of the prosecution.

The Defendants:

JEFFREY BUSH (also known as “Chuck” and “Chuck Taylor”)
Age:  35
Brooklyn, New York

TYSHAWN ATKINS (also known as “Breeze”)
Age:  25
Brooklyn, New York

INDIA LANE (also known as “Gorgeous Gangsta”)
Age:  29
Brooklyn, New York

LOUIS LOVE (also known as “Scoobz” and “Scoobie”)
Age:  29
Brooklyn, New York

MARVIN PIPPINS (also known as “Mukk”)
Age:  29
Brooklyn, New York

JAMES SEASE (also known as “Chop Whop”)
Age:  32
Brooklyn, New York

MONTEL SHUEMAKE (also known as “Buzzo”)
Age:  29
Brooklyn, New York

RODOLFO ZAMBRANO (also known as “Latinn Dinero”)
Age:  26
Brooklyn, New York

JOSE BATTLE (also known as “Strizzy”)
Age:  25
Brooklyn, New York

BRIAN JACKSON (also known as “Grape” and “Maxx Millii”)
Age:  29
Brooklyn, New York

YONETTE RESPASS
Age:  28
Bronx, New York

E.D.N.Y. Docket No. 19-CR-378 (S-1)(DLI)

Earlier today, in federal court in Brooklyn, Steven Bynum pleaded guilty before United States District Judge Ann M. Donnelly to firing a handgun into a group of people in furtherance of a drug distribution dispute, wounding a pregnant innocent bystander.  When sentenced, Bynum faces up to life in prison.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty plea.

According to court filings and facts presented during court proceedings, in early 2017, Bynum and his co-conspirators stole drugs from another drug dealer (“John Doe”) and then distributed those drugs at the Kingsborough Houses in Crown Heights, Brooklyn.  In June 2017, “John Doe” retaliated by assaulting and pistol-whipping Bynum.  On September 10, 2017, Bynum drove to Dean Street in East New York, where he spotted “John Doe” standing with a group of people.  Bynum fired multiple shots at the group, but missed “John Doe” and instead hit a five-month pregnant bystander twice in the head.  The victim still suffers from partial paralysis and permanent cognitive damage from the bullet wounds.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. 

The government’s case is being is handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Francisco J. Navarro and Temidayo Aganga-Williams are in charge of the prosecution.

The Defendant:

STEVEN BYNUM (also known as “Nitty”)
Age:  38
Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-0255 (AMD)

COLUMBUS, Ohio – A Columbus man was sentenced in federal court today to 11 years in prison for distributing child pornography.

Michael D. Moore, 29, posed as a minor female on Facebook and sent child pornography files to a 14-year-old female.

Moore was a registered sex offender in Franklin County, as the result of a 2012 conviction for pandering sexually oriented matter involving a minor and importuning. In that case, Moore posed as a minor male on Facebook. After initially receiving a state community control sentence, Moore violated probation and was sentenced to nearly five years in prison.

Moore engaged in the federal offense conduct in this case seven months after being released from state custody, while he was still on state parole.

According to court documents, in September 2018, the Ohio Internet Crimes Against Children (ICAC) Task Force forwarded two CyberTipline reports it had received from the National Center for Missing and Exploited Children (NCMEC) to the Franklin County ICAC Task Force.

Facebook and Google had each submitted tips to NCMEC regarding the uploading of child pornography images from Moore’s accounts.

Search warrants revealed explicit conversation between Moore (who was posing as a 12-year-old girl) and a 14-year-old on Facebook. Moore claimed to be the child in the pornography he shared with the victim.

During a search of Moore’s residence, investigators discovered four cell phones. One cell phone contained child pornography images. Three of the phones had password protection that initially prevented forensic examination and Moore refused to provide password information for the phones. Later access to two of those phones revealed additional child pornography files and a different online conversation with a victim who was 15 years old.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Ohio Attorney General Dave Yost; and Franklin County Sheriff Dallas Baldwin announced the sentence imposed by U.S. District Court Judge Sarah D. Morrison. Assistant United States Attorney Heather A. Hill is representing the United States in this case.

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PITTSBURGH, PA – Stephen Barnes was sentenced to 75 months in federal prison for heroin and crack cocaine trafficking, United States Attorney Scott W. Brady announced today.

Barnes, age 51, previously resided in the Pittsburgh area and in Philadelphia. United States District Judge Nora Barry Fischer imposed the sentence. Judge Fischer also ordered Barnes to serve four years of supervised release upon his release from prison.

From March 2018 to May 2018, while Barnes was on state parole following a prior murder conviction, he distributed large quantities of fentanyl, crack cocaine, and heroin in Western Pennsylvania. Barnes’s drug distribution came to an end in May 2018 when he got caught while driving 296 bricks of heroin to Western Pennsylvania. He intended to distribute the heroin in Western Pennsylvania.

Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.

The Drug Enforcement Administration, the Office of the Pennsylvania Attorney General, and the Pennsylvania State Police conducted the investigation leading to the conviction and sentence in this case.

PHILADELPHIA – United States Attorney William M. McSwain announced that Craig Alex Levin, 64, of King of Prussia, PA was charged by Indictment with child exploitation offenses related to his travel to the Philippines. The Indictment was filed in December 2019 and unsealed today. The defendant is currently in custody in the Philippines and awaiting deportation back to the United States.

Levin was originally charged through a Criminal Complaint and Warrant in July 2019. The Indictment unsealed today alleges that the defendant used the internet to persuade, induce, entice and coerce a child into sex trafficking (count one), and that he travelled internationally from the United States to the Philippines for the purposes of engaging in illicit sexual conduct with minor children (count two).

“As alleged in the Indictment, the defendant is a dangerous predator who targeted vulnerable children in a foreign country. This is reprehensible,” said U.S. Attorney McSwain. “Indeed, at the time of the defendant’s arrest last year in the Philippines, he was escorting a 15 year-old girl to his hotel room. Holding child sexual offenders accountable, no matter where they prey on children, will continue to be a top priority of my Office and the entire Department of Justice.”

“Craig Levin felt safe in the Philippines. He traveled there repeatedly, stayed for months at a time, and sexually exploited numerous underage girls, as alleged,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “If Mr. Levin thought no one in the U.S. would know or care about the abuse because it took place on the other side of the world, he was badly mistaken. Child sexual exploitation is abhorrent anywhere, and the FBI won’t hesitate to go after these offenders wherever we find them. Protecting vulnerable underage victims and aggressively investigating predators who prey on them continues to be one of the FBI’s highest priorities.” 

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

If convicted, the defendant faces a maximum possible sentence of lifetime imprisonment with a mandatory minimum of ten years, lifetime supervised release, a $500,000 fine, and an additional $10,000 mandatory special assessment.

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Daniel Velez.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

Amhad Jones, 26, pleaded guilty to five counts of interfering with commerce by robbery and three counts of using a firearm during and in relation to a crime of violence for a series of armed robberies in Cleveland, Ohio last year. 

According to court records and Jones’ acknowledgements during the change of plea hearing:

On January 18, 2019, Jones entered the Metro PCS store located at 9312 Harvard Avenue, Cleveland, Ohio.  He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee.  The employee gave him approximately $900 and Jones fled.

On February 6, 2019, Jones entered the Metro PCS store located at 10959 Kinsman Road, Cleveland, Ohio.  He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee.  The employee gave him approximately $250 and Jones fled.

On February 13, 2019, Jones entered the Metro PCS store located at 14701 Kinsman Road, Cleveland, Ohio.  He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee.  The employee gave him approximately $350 and Jones fled.

On April 19, 2019, Jones entered the Metro PCS store located at 14701 Kinsman Road, Cleveland, Ohio.  He walked up to the counter, then he pulled out a pistol and brandished it at the employee.  The employee gave him approximately $300-$800 and Jones fled.

On April 23, 2019, Jones entered the Metro PCS store located at 9312 Harvard Avenue, Cleveland, Ohio.  He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee.  The employee, a concealed carry permit holder, retrieved his own pistol and shot Jones three times.  Jones received medical attention and was later arrested.  A pistol was recovered from Jones. 

This prosecution is part of Project Guardian, the Justice Department’s signature initiative to reduce gun violence and enforce federal firearms laws. 

This case is also part of Project Safe Neighborhoods, a program that surges federal and local law enforcement resources to communities’ most violent neighborhoods in order to root out offenders and build positive relationships with victims, witnesses and community members. 

This case was investigated by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Cuyahoga County Prosecutor’s Crime Strategies Unit, and prosecuted by Assistant U.S. Attorney Kelly L. Galvin.

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United States Attorney Richard P. Donoghue announced today that the Eastern District of New York collected over $1.1 billion in criminal and civil actions in fiscal year 2019.  Of this amount, $24,687,372 was collected in criminal actions, and $1,093,836,145 was collected in civil actionshandled solely by the Eastern District. Additionally, $1,012,187 resulted from cases handled in conjunction with other U.S. Attorney’s Offices and litigating divisionsof the Department of Justice, including the forfeiture of $215,491,403 in assets tainted by crime. 

“The Eastern District’s recoveries in fiscal year 2019 are notable for having achieved economic justice on behalf of those who were harmed by individuals and corporate entities that put profits ahead of individuals and their well-being,” stated United States Attorney Donoghue.  “This Office is committed to vigorously pursuing civil and criminal penalties from wrongdoers.”

FY 2019 Collections Highlights

In October 2018, the Eastern District of New York recovered $480 million in civil penalties from Nomura Holding America Inc. and several of its affiliates to resolve claims that Nomura misled investors in connection with the marketing, sale and issuance of residential mortgage-backed securities between 2006 and 2007.

Also in October 2018, AmerisourceBergen Corporation, one of the nation’s largest wholesale drug companies, and its subsidiaries AmerisourceBergen Specialty Group, AmerisourceBergen Drug Corporation, Oncology Supply Company and Medical Initiatives, Inc. (collectively “ABC”), entered into a settlement agreement with the United States in which ABC agreed to pay $625 million to resolve civil liability under the False Claims Act.  The claims against ABC arose from its repackaging and distributing of pre-filled syringesthat were not approved for sale or use by the U.S. Food and Drug Administration.  The drugs involved in the scheme were supportive drugs for cancer patients undergoing chemotherapy treatment.

Collections Overview

The U.S. Attorneys’ Offices, along with the Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victims, criminal fines and felony assessments are paid to the Department of Justice Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.  Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund, and are used to restore funds to crime victims and for a variety of law enforcement purposes.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

TOPEKA, KAN. – A California man was sentenced today to 52 months in federal prison for smuggling 18 pounds of cocaine to Kansas, U.S. Attorney Stephen McAllister said.

Jesus Gonzalez-Molina, 30, pleaded guilty to one count of possession with intent to distribute cocaine. In his plea, he admitted he was driving eastbound on I-70 through Shawnee County when he was stopped by the Kansas Highway Patrol. Troopers searched the 2007 Toyota 4Runner he was driving and found a hidden compartment containing the drugs.

McAllister commended Assistant U.S. Attorney Skip Jacobs, the Kansas Highway Patrol and Drug Enforcement Administration for their work on the case.

            CONCORD - Heath Palmer, 39, of Manchester, was sentenced in federal court to 12 months and 1 day of imprisonment for possessing an unlawful synthetic cannabinoid product with intent to distribute, United States Attorney Scott W. Murray announced today.

            According to statements made in court, on April 18, 2019, Palmer was observed by police officers conducting hand-to-hand sales from a car.  The Manchester Police stopped Palmer and he voluntarily turned over the product he was selling.  Palmer claimed that the product did not contain illegal substances.  Testing by the New Hampshire State Police Forensic Laboratory confirmed, however, that the product contained an illegal substance, 5F-MDMB-PICA.

            On May 7, 2019, Palmer was informed by the Manchester Police that the substance he was selling was in fact illegal under federal law.  Three days later, the Manchester Police observed Palmer continuing to make hand-to-hand sales from a car.  The police stopped the car and seized the product that Palmer was selling.  The product was again tested, and it contained the same illegal substance, 5F-MDMB-PICA. 

            Palmer previously pleaded guilty on October 10, 2019.

            According to the DEA, synthetic cannabinoids, which commonly are referred to by names such as “Spice” or “K2,” are designer drugs that are made in laboratories.  The chemicals often are sprayed onto plant substances and then smoked in order to obtain a high.  These substances have severe adverse effects and have often led to overdoses.  In addition to the dangers associated with the chemical substances themselves, the lack of manufacturing standards may lead to increased health risks. 

            The DEA issued a regulation on April 16, 2019, that made 5F-MDMB-PICA and several other synthetic cannabinoids Schedule I controlled substances.  In its order, the DEA noted that this drug had been associated with over 47 overdoses in Connecticut and at least 244 overdoses in Washington, D.C.  Further information is available at https://www.deadiversion.usdoj.gov/fed_regs/rules/2019/fr0416.htm and https://www.dea.gov/sites/default/files/sites/getsmartaboutdrugs.com/files/publications/DoA_2017Ed_Updated_6.16.17.pdf#page=88.

            “Synthetic cannabinoids are extremely dangerous substances that can cause great physical harm,” said U.S. Attorney Murray.  “Those who refer to these dangerous drugs as synthetic marijuana help to create confusion that can mislead users about the real hazards associated with these substances.  Those who distribute synthetic cannabinoids are endangering public health and safety and breaking federal law.  As this case shows, we will not hesitate to prosecute and incarcerate those who are profiting from selling these dangerous drugs.”

            “There is a misconception that synthetic cannabinoids, known on the street as synthetic marijuana, K2, and Spice, are safe.  Synthetic cannabinoids are anything but safe,” said DEA Special Agent in Charge Brian D. Boyle.  “They are a toxic cocktail of lethal chemicals with serious health and safety risks. This investigation represents local, state and federal law enforcement’s efforts to combat this public threat.”

            “I’m very pleased that we were able to see Palmer prosecuted,” says Manchester Chief Carlo Capano. "His repeated behavior involving the sales of 'Spice' will not be tolerated in the city.  The Manchester Police Department has been dealing with 'Spice' for some time now and these cases can be very difficult. I’d like to acknowledge the outstanding job our investigators did in putting this together.”

            The case was investigated by the Manchester Police Department and the Drug Enforcement Administration.  The case was prosecuted by Assistant United States Attorney Seth R. Aframe.

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CAMDEN, N.J. – A New Jersey man was arrested today for allegedly robbing a Camden barbershop and for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.

Benjamin Daye, 33, is charged by complaint with one count of Hobbs Act robbery and one count of unlawful possession of a firearm by a convicted felon. Daye is scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.

“This case is prime example of the renewed focus on prosecuting gun crimes that was announced by the Department of Justice last fall,” U.S. Attorney Carpenito said. “We are working with our partners at Alcohol, Tobacco, Firearms and Explosives and local law enforcement to investigate gun crimes and bring offenders to justice swiftly. Today’s complaint describes a defendant who not only was prohibited from possessing a gun, but who allegedly was all too quick to use one in furtherance of a violent crime.”

“The arrest today and development of this investigation is a great example of collaboration at its best,” ATF Special Agent in Charge Charlie J. Patterson said. “ATF is proud to partner with the U.S. Attorney’s Office and the Camden County Police Department to stop the City’s most violent offenders, especially those who use firearms to commit senseless acts of crime. ATF will continue to be on the front line alongside our partners to ensure our communities remain safe places to live, work, and play.”

“Eliminating illegal firearms, and the carnage they create, in our community is my number priority,” Camden County Police Chief Joseph Wysocki said. “The violent crime tied to these guns has a destabilizing impact on our neighborhoods and residents. Furthermore, crimes committed with these weapons and the individuals that carry them will have our agency’s undivided attention. I want to thank all of our partners, local, state and federal, for their assistance in this arrest and forthcoming prosecution.”

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

On Nov. 23, 2019, Daye entered a barbershop in Camden armed with a loaded handgun. He grabbed a juvenile customer, pointed the gun at the customer’s head, and demanded cash and belongings from employees and customers. Daye was apprehended shortly thereafter next to a bag containing the handgun and the stolen items. Daye previously was convicted of three crimes, each punishable by imprisonment for a term exceeding one year.

The Hobbs Act charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of being a felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

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 ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian

U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Patterson; the Camden County Police Department, under the direction of Chief Wysocki; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s charges. This investigation was a joint efforts of the ATF Camden Field Office and the Camden County Police Department (CCPD) Shooting Response Team (SRT). ATF and CCPD have formulated a partnership composed of special agents, detectives, and intelligence analysts that investigate shooting incidents in real time.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.

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

NEWARK, N.J. – A New Jersey man who allegedly lured commercial sex workers to travel from out of state to engage in prostitution and other sexual acts by use of force, violence and threats in and around Middlesex County, New Jersey, will appear in court today, U.S. Attorney Craig Carpenito announced.

Jose Torres, 42, is charged by complaint with two counts of coercion and enticement. The defendant is scheduled to appear this afternoon before U.S. Magistrate Judge M. Page Kelly in Boston federal court. Torres was arrested on Feb. 14, 2020, in Boston.

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

From May 2015 to October 2019, Torres persuaded, induced and enticed commercial sex workers to travel from various out of state locations, including Canada and New York, in order to engage in prostitution. Torres lured commercial sex workers to New Jersey with promises of large payments. When the commercial sex workers asked for payment, Torres became aggressive, often assaulting and raping them. Torres never paid the sex workers.

The coercion and enticement charges each carries a maximum term of 20 years’ imprisonment and a potential $250,000 fine.

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

The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; the Middlesex County, New Jersey, Prosecutor’s Office, under the direction of Acting Prosecutor Christopher L. C. Kuberiet; and the Peabody, Massachusetts, Police Department, under the direction of Chief Thomas Griffin, with the investigation leading to the charges.

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

CORPUS CHRISTI, Texas – Eight Corpus Christi residents have been ordered to federal prison following their convictions for conspiracy to possess with intent to distribute synthetic cannabinoids, announced U.S. Attorney Ryan K. Patrick.

James Roye Bryan Townzen, 30, Victoria Martinez, 24, Michael Llamas, 29, Benjamin Llamas, 35, Raymond Reyes, 38, John Perez, 28, Raymond Shane Townzen, 29, and Joe McNabb, 30, pleaded guilty April 16, 2019, while Charles Warren Callis, 42, entered his plea Aug. 19, 2019.  

Today, Senior U.S. District Judge John D. Rainey sentenced Callis to serve 226 months in federal prison for his involvement with the synthetic cannabinoid offense. He also pleaded guilty to an unrelated possession with intent to distribute cocaine charge, but proceeded to trial on a related possession of a firearm in furtherance of cocaine trafficking. A jury convicted him of that charge July 30, 2019. He received a sentence of 166 months for the cocaine trafficking to be served consecutively to another 60 months for the firearm. That total sentence will be served concurrently to the 166-month sentence imposed in the synthetic cannabinoids case for a total 226-month sentence.

In December 2019, James Townzen received a sentence of 222 months in prison. Raymond Townzen was sentenced to 150 months, while Reyes, Perez and McNabb were ordered to serve respective terms of 84, 72 and 156 months in federal prison. Martinez and Michael Llamas received 160 and 200 months, respectively, for the drug charge in addition to another 60 months for possessing a firearm which must be served consecutively. Their total 220 and 260-month-terms of imprisonment will also be immediately followed by three years of supervised release.

Callis was ordered to serve five years of supervised release while the remaining defendants will serve three-year-terms following their respective sentences. 

The final defendant - Benjamin Llamas - will be sentenced next month.

At the sentencing hearings, the court heard from an expert witness from the Drug Enforcement Administration (DEA) who provided testimony about how the DEA handles newly emerging synthetic narcotics, their adverse effects and the imminent hazard they present to the public safety. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) also testified as to the impact synthetic cannabinoids have on the local community.

In handing down the sentences, the court acknowledged the significant danger of synthetic cannabinoids as well as the large scale of the operation, specifically the steps taken to import the chemicals and produce such a large quantity of product that was distributed within the community.

In January 2018, officials intercepted an international package from China sent to Corpus Christi that contained a kilogram of the synthetic cannabinoid 5F-MDMB-PINACA, a Schedule I controlled substance.

The investigation determined James Townzen was ordering illegal chemicals from overseas and using them to manufacture synthetic marijuana, or Kush, inside a room at Callis’ business Done Right AC. The finished product was then provided to Michael Llamas and others who would advertise and sell the illegal substance through online social media platforms, such as Facebook.

Further, authorities discovered that after James Townzen was taken into custody for unrelated state violations, he continued to run and direct the operation. While in custody, he provided detailed instructions to Martinez who continued to order the chemicals, manufacture the products inside Done Right AC and distribute them through Llamas. Other members of the conspiracy were responsible for picking up the international packages or purchasing the material and equipment needed to complete the process.

Law enforcement officials estimate the organization produced and sold more than 300 pounds of the illegal substance.             

Synthetic cannabinoids are chemical compounds that mimic the psychoactive ingredient in marijuana. These chemical compounds can be applied to carrier mediums such as plant material and ingested using rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and is marketed as incense that can be smoked. It is commonly sold and known on the street as synthetic marijuana, fake weed, legal and by its popular brand names such as Spice, K2, Kush, Klimaxx and many others.

All defendants have been and will remain in custody.

HSI led the year-long investigation known as Operation Done Wrong with the assistance of DEA. Assistant U.S. Attorney Lance Watt is prosecuting the case.

BOSTON – The former CEO and co-founder of a Boston-based mobile phone music streaming service has pleaded guilty to charges of engaging in a scheme to embezzle hundreds of thousands of dollars from his employer and filing false tax returns.  

David John, who recently changed his name from David Fondots, 56, pleaded guilty on Friday, Feb. 14, 2020, to one count of wire fraud and one count of filing false tax returns. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 15, 2020.

John misappropriated company funds which he used for his personal benefit. From 2014 to 2016, John caused his company to pay significant sums of money directly to himself, to a family member, and to companies controlled by a family member. John used the embezzled funds to pay personal expenses for himself and his family, including car payments, legal fees, and travel, among other things. John is also charged with failing to report the illegal income to the IRS over the period of his embezzlement scheme.

The charge of wire fraud carries a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, restitution, and forfeiture.  The charge of filing false tax returns carries a sentence of up to three years in prison, one year of supervised release and a fine of $ 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent In Charge of the Federal Bureau of Investigation, Boston Field Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities & Financial Fraud Unit is prosecuting the case.

BOSTON – A Worcester man pleaded guilty today to being a felon in possession of a firearm and ammunition. 

Christopher Brown, 35, pleaded guilty to being a felon in possession of a firearm before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for June 8, 2020. In February 2019, Brown was charged by federal criminal complaint.

On Nov. 25, 2018, Brown was arrested in Worcester for possession of a loaded Taurus .38 revolver and 4 rounds of ammunition. Brown is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.

The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York and Brian A. Benczkowski, Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced today that HARALD JOACHIM VON DER GOLTZ, a/k/a “H.J. von der Goltz,” “Johan von der Goltz,” “Jochen von der Goltz,” “Tica,” “Tika,” pled guilty today before U.S. Magistrate Judge Barbara Moses to wire fraud, tax fraud, money laundering, false statements, and other charges.  VON DER GOLTZ, a former U.S. resident and taxpayer, is charged along with Ramses Owens, Dirk Brauer, and Richard Gaffey, a/k/a “Dick Gaffey,” in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and its related entities. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Harald Joachim von der Goltz went to extraordinary lengths to circumvent U.S. tax laws in order to maintain his wealth and hide it from the IRS.  Using the specialized criminal services of global law firm Mossack Fonseca, von der Goltz set up shell companies and off-shore accounts to conceal millions of dollars.  Now, after years of concealment from the United States, von der Goltz has admitted guilt in a U.S. court and awaits sentencing that could result in a term in a U.S. prison.”

AAG Brian A. Benczkowski said:  “Over nearly two decades, von der Goltz conspired to keep his income hidden from U.S. tax authorities and law enforcement.  Today’s guilty plea demonstrates the Department’s steadfast commitment to prosecute taxpayers who use offshore structures to obscure their wealth and evade their tax obligations.”According to the allegations contained in the Indictments[1], other filings in this case, and statements during court proceedings, including VON DER GOLTZ’s guilty plea hearing:

Since at least 2000 through 2017, VON DER GOLTZ conspired with others to conceal his assets and investments, and the income generated by those assets and investments, from the Internal Revenue Service (“IRS”) through fraudulent, deceitful, and dishonest means.  During all relevant times, VON DER GOLTZ was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts.  Nevertheless, VON DER GOLTZ evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS.  These shell companies and bank accounts made investments totaling tens of millions of dollars.  VON DER GOLTZ was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at Mossack Fonseca, and by Richard Gaffey, a partner at a U.S.-based accounting firm.  Specifically, in furtherance of VON DER GOLTZ’s efforts to conceal his assets and income from the IRS, VON DER GOLTZ engaged the services of Mossack Fonseca, including Owens, to create a sham foundation and shell companies formed under the laws of Panama and the British Virgin Islands to conceal from the IRS and others the ownership by VON DER GOLTZ of accounts established at overseas banks, as well as the income generated in those accounts.  VON DER GOLTZ, Gaffey, and Owens also falsely claimed that VON DER GOLTZ’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike VON DER GOLTZ – was not a U.S. taxpayer. 

*                *                *

VON DER GOLTZ, 82, a citizen of Germany and Guatemala who resided in Needham, Massachusetts, and Key Biscayne, Florida, pled guilty to one count of conspiracy to commit tax evasion, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; four counts of willful failure to file Reports of Foreign Bank and Financial Accounts, FINCEN Reports 114, each of which carries a maximum sentence of five years in prison; and two counts of false statements, each of which carries a maximum sentence of five years in prison. 

VON DER GOLTZ is scheduled to appear before Judge Richard M. Berman on February 24, 2020, at 9:30 a.m., at which time it is anticipated Judge Berman will set a sentencing date.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.

Gaffey is scheduled to proceed to trial on March 9, 2020, before Judge Berman. 

*                *                *

U.S. Attorney Berman praised the outstanding investigative work of IRS - Criminal Investigation and HSI, and thanked the Justice Department’s Tax Division and the Federal Bureau of Investigation for their significant assistance in the investigation.  Mr. Berman also thanked the Criminal Division’s Office of International Affairs, which provided significant assistance in securing the defendant’s extradition from the United Kingdom.  He also thanked law enforcement partners in France, the United Kingdom, Panama, and Germany for their assistance in the case.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, working in partnership with the Money Laundering and Asset Recovery Section of the Criminal Division.  Assistant United States Attorneys Eun Young Choi and Thane Rehn, along with Trial Attorneys Michael Parker and Parker Tobin of the Money Laundering and Asset Recovery Section, are in charge of the prosecution.

The charges as to Owens, Brauer, and Gaffey are merely accusations, and they are presumed innocent unless and until proven guilty.