Oklahoma City, Oklahoma– Assistant U.S. Attorneys David P. Petermann and Matt Dillon have been recognized as Region 1 Prosecutors of the Year by the Association of Oklahoma Narcotic Enforcers, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.

The Association, also known as A-ONE, has facilitated the exchange of information among Oklahoma narcotics investigators since 1989. Through regional meetings and training sessions, it keeps members informed of current investigative techniques, patterns of drug abuse, changes in the law, and other topics.

Assistant U.S. Attorneys Petermann and Dillon received their awards at the Association’s Annual Training Conference on August 3, 2017. This recognition is the result of the successful prosecution of a large drug-distribution and money-laundering organization. The Drug Enforcement Administration, the Criminal Investigation Division of the Internal Revenue Service, the Oklahoma County District Attorney’s Office, and the Oklahoma City Police Department participated in the investigation, which involved more than a dozen wiretaps.

Mr. Petermann has prosecuted drug and violent crimes in the Oklahoma City U.S. Attorney’s Office since 2007. He also serves as the office’s Senior Litigation Counsel. Before 2007, he was an Assistant U.S. Attorney in the District of Arizona. Mr. Dillon joined the U.S. Attorney’s Office in 2014, after serving as a Team Leader in the Oklahoma County District Attorney’s Office. He is also the office’s liaison to the Joint Terrorism Task Force for the Western District of Oklahoma.

LUFKIN, Texas — A Jasper, Texas couple and their daughter have been found guilty of federal conspiracy violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.

Walter Diggles, 65, his wife, Rosie Diggles, 63, both of Jasper, and their daughter, Anita Diggles, 41, of Houston, have been found guilty of 28 counts including conspiracy to commit wire fraud, wire fraud, theft from programs receiving federal funds and engaging in monetary transactions from unlawful activity. The jury deliberated for 2 ½ hours before returning the guilty verdict late on Aug, 3, 2017, following a nine-day trial before U.S. District Judge Ron Clark.

According to information presented in court, the defendants devised a scheme to obtain and make personal use of federal block grant funds that Congress appropriated following Hurricanes Rita, Katrina, Ike, and Dolly. These funds were made available to the State of Texas, which in turn contracted with several councils of governments within the state to assist in administering and distributing the funds. Walter Diggles was the Executive Director of the Deep East Texas Council of Governments during this time and used his position to approve inflated requests for reimbursement of federal block grant funds while Rosie Diggles and Anita Diggles prepared many of the requests. Additionally, Walter Diggles engaged in activities and approved requests for block grant funds that were fraudulent in nature and all the defendants spent the excess funds on personal expenses. The Diggles were indicted by a federal grand jury on Dec. 2, 2015.

“Our Constitution provides for trial by jury for those who contest criminal charges,” said Acting U.S. Attorney Brit Featherston. “The jury in this case heard, viewed and studied the evidence that was presented over nine days of trial, from both the defense and the government. At the ringing of the bell, the verdict was guilty for all and on all counts. Justice for all of the DETCOG’s 12 counties and for the taxpayers has been done.”

Under federal statutes, the Diggles each face up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Department of Homeland Security / U.S. Immigration and Customs Enforcement, the U.S. Department of Housing and Urban Development, and the Texas State Auditor’s Office. This case was prosecuted by Assistant U.S. Attorneys Tom Gibson and James Noble.

HOUSTON - An e-commerce company and its top executive have agreed to plead guilty to conspiring to fix prices for customized promotional products sold online to customers in the United States. Zaappaaz Inc. (d/b/a WB Promotions Inc., Wrist-Band.com and Customlanyard.net) and its president Azim Makanojiya agreed to plead guilty to a one-count criminal violation of the Sherman Act.

Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division made the announcement.

According to the felony charges filed today in the U.S. District Court for the Southern District of Texas in Houston, the conspirators attended meetings and communicated in person and online. The investigation has revealed that the conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype and Whatsapp, to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands and lanyards. In addition to agreeing to plead guilty, Zaappaaz has agreed to pay a $1.9 million criminal fine.

“As today’s charges show, criminals cannot evade detection by conspiring online and using encrypted messaging,” said Finch. “In addition, today’s charges are a clear sign of the Division’s commitment to uncovering and prosecuting collusion that affects internet sales. American consumers have the right to a marketplace free of unlawful collusion, whether they are shopping at retail stores or online.”

“Schemes like the defendants’ cause financial harm to consumers who purchase goods and services and to businesses who sell goods and services in compliance with the laws of the United States,” said Martinez. “The United States will continue to investigate and prosecute individuals and businesses who seek to gain an illegal unfair advantage.”

“The FBI stands ready to protect consumers from unscrupulous business practices,” said Turner. “Antitrust laws help protect the competitive process for the benefit of all consumers.”

Makanojiya is charged with price fixing in violation of the Sherman Act which carries a maximum sentence of 10 years in federal prison and a maximum fine of $1 million for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine.

Both defendants have agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreements are subject to court approval.

This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

PROVIDENCE – Ryan J. Lebrun, 24, of Pawtucket, was sentenced today to 180 months (15 years) in federal prison for possessing and distributing child pornography. According to court records, Lebrun, a registered sex offender, was previously convicted in Rhode Island state court in two unrelated child pornography cases.

At sentencing, U.S. District Judge John J. McConnell, Jr., also ordered Lebrun to serve 10 years supervised upon completion of his prison term. Lebrun pleaded guilty on February 14, 2017, to two counts of distribution of child pornography and one count of possession of child pornography.

The U.S. Sentencing Guidelines range of imprisonment in this matter is 180-188 months. The government recommended the court impose a sentence of 180 months in prison.

Lebrun’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Ann S. Assumpico, Superintendent of the Rhode Island State Police.

According to court records and information presented to the court, in June 2015, while conducting an investigation into the sharing of child pornography, German law enforcement accepted an online solicitation on a Peer to Peer (P2P) file sharing program from an individual later identified as Ryan Lebrun. German authorities were able to access Lebrun’s files and library from which they downloaded several files of child pornography.

 In September 2015, HSI in Rhode Island was notified by HSI Cyber Crimes Center via Interpol, Wiesbaden, Germany, of Lebrun’s online activities. HSI agents in Rhode Island viewed Lebrun’s files and library, and identified approximately 21 images and 3 videos of child pornography.

In October 2015, it was learned that the FBI was also investigating Lebrun’s activities on the P2P file sharing program. The FBI also downloaded images of child pornography from Lebrun’s files and engaged in online chats with Lebrun.

Additionally, in October 2015, the Rhode Island State Police Internet Crimes Against Children (ICAC) task force received information from the National Center for Missing and Exploited Children regarding a Google email account that contained child pornography. The email account, which also contained an image of Lebrun, was determined by Rhode Island State Police to belong to Lebrun.

On November 9, 2015, HSI, FBI and a Rhode Island State Trooper assigned to the ICAC executed a court authorized search warrant at Lebrun’s Pawtucket residence. The search resulted in the seizure of, among other things, numerous electronic devices and digital storage cards. A forensic examination of the devices and storage cards identified more than 200 videos and 90 images of child pornography.

According to court records, Lebrun, a registered sex offender, was twice convicted in Rhode Island state court on child pornography charges. On April 16, 2011, Lebrun was arrested by the Warwick Police Department and charged with possession of child pornography. He pleaded guilty and on November 10, 2011, he was sentenced to 3 years of probation. On April 17, 2013, Lebrun was arrested by Rhode Island State Police and charged with possession and transfer of child pornography. He pleaded guilty and on November 20, 2013, was sentenced to 5 years of incarceration with 2 years to serve.

Lebrun has been detained in federal custody since his arrest on November 10, 2015.

The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Warwick Police Department for their assistance in the investigation of this matter.

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ALBANY, NEW YORK – Jamie Paredes Lojano, 29, of Ecuador (currently living in Colonie, New York), was sentenced today to time served (57 days in jail), followed by a one year period of supervised release, for illegally re-entering the United States.

The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.

As part of his guilty plea, Paredes Lojano admitted that he is an alien, a citizen of Ecuador, and that he illegally returned to the United States after he was previously removed to Ecuador on July 21, 2010.

On June 8, 2017, Paredes Lojano was stopped and arrested by Border Patrol Agents on Interstate 87 near North Hudson, in Essex County New York.

Following the sentencing, Paredes Lojano was remanded to the custody of the Department of Homeland Security, which will place him into removal/deportation proceedings.

The case was investigated by United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

Alleged to have extorted and made death threats to minor victims, and to use explosive devices at Plainfield and Danville High Schools.

PRESS RELEASE

Indianapolis –United States Attorney Josh J. Minkler announced today that a Bakersfield, California, man has been federally charged for his role in threatening to use explosive devices at Plainfield and Danville, Indiana High Schools, making cyber threats to female victims and producing child pornography. Buster Hernandez, 26, was charged with threats to use an explosive device, threats to injure and sexual exploitation of a child.

“Terrorizing young victims through the use of social media and hiding behind the anonymity of the Internet will not be tolerated by this office,” said Minkler. “Those who think they can outwit law enforcement and are above being caught should think again. Mr. Hernandez’s reign of terror is over.”

According to court documents, the Brownsburg Police Department contacted the FBI in December 2015, asking for assistance with a cyber-threat case involving a minor female victim (Victim 1), a resident of Plainfield Indiana. The threats came from a person known only at the time as “Brian Kil” who used Facebook to communicate with Victim 1 to extort sexually explicit pictures from her. This pattern continued for approximately 16 months with Victim 1 sending sexually explicit images of herself under threat by “Brian Kil.” This technique is commonly referred to as “sextortion.”

When Victim 1 refused to provide additional images as demanded, Hernandez is alleged to have made physical threats to Victim 1, stating “I am coming for you. I will slaughter your entire class and save you for last.” He further made threats to law enforcement saying, “I will add a dozen dead police to my tally…Try me pigs, I will finish you off as well.” These threats caused school administrators to close the Plainfield and Danville High Schools. The Shops at Perry Crossing in Plainfield was also closed December 19, 2015, but reopened the following day after law enforcement insured there were no credible threats.

Hernandez is also alleged to have sexually exploited and threatened two other minor victims (Victims 2 and 3). When Victim 2 stopped complying with Hernandez’s demands, he posted sexually explicit images and videos of Victim 2 that she sent to Hernandez against her will. According to the complaint affidavit, Hernandez asked Victim 3 to attend a community forum held in Plainfield, Indiana, and record law enforcement’s statements about the investigation into “Brian Kil.”

In addition, Hernandez is alleged to have “sextorted” a number of victims in at least 10 federal districts.

“This was a unique and complex investigation that highlights the tenacity, perseverance, expertise and dedication of the FBI Indianapolis’ Crimes Against Children Task Force and was a top priority. Innovative techniques were utilized, solutions to roadblocks created and partnerships with key private sector partners were developed,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “I stood in front of concerned parents and community members and told them we would find the person who had been victimizing these young girls and, with the tireless work of our agents and partners, we never gave up.”

Hernandez had his initial appearance in the Eastern District of California on Friday, August 4, 2017, and will be transported by the United States Marshal Service to federal court in Indianapolis where he will face charges from the criminal complaint.

This investigation was jointly conducted by the Federal Bureau of Investigation, the Indiana State Police, the Plainfield Police Department and the Brownsburg Police Department.

Indiana State Police Superintendent Doug Carter said, “I have no doubt Buster Hernandez had forgotten all about Plainfield, Indiana and the terror he inflicted; but none of us here forgot.” Carter concluded, “We said we’d keep looking until we found you, and we did.”

“The FBI told us that this would be a long investigation and they were right,” said Plainfield Police Chief Darel Krieger. “However, with dogged determination they have apprehended a person who they believe is the person who posed as Brian Kil. We are grateful not only to the FBI but to all the agencies involved in this investigation (federal state and local) and the great partnership that was shown over the past 20 months.”

“The Brownsburg Police Department is grateful for the opportunity to have personnel from our agency assigned to such a specialized criminal enforcement division such as the Internet Crimes Against Children,” said Chief Joe Grimes. “These partnerships between federal and local agencies allow for a vast availability of resources to safeguard our communities and demonstrate law enforcement’s commitment to protecting the innocent.”

According to Assistant United States Attorney Tiffany J. Preston who is prosecuting this case for the government, Hernandez faces a mandatory minimum sentence of 15 years’ imprisonment, and a maximum of 30 years’ imprisonment if convicted on all counts.

A criminal complaint is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.

If you believe you have been a victim of sextortion by Buster Hernandez, a/k/a Brian Kil, please contact the Indianapolis FBI Office at https://tips.fbi.gov/ or call 317-595-4000, Option 2, to make a report.

PLATTSBURGH, NEW YORK – Kirkland Smith, 55, of Witherbee, New York, was sentenced yesterday to serve 212 months in prison for possessing child pornography, announced Acting United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach II; and James C. Spero, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.

As part of his guilty plea, Smith admitted to possessing hundreds of videos and images of child pornography on a memory card seized from his car and on five hard drives seized from his home. Smith was discovered passed out at the wheel of his car on Rt. 73 in Keene, New York by a New York State Trooper on October 30, 2014, and arrested for driving while intoxicated. Seized from Smith’s vehicle was a memory card containing child pornography inserted in an electronic tablet device. A court-authorized search warrant of the defendant’s residence resulted in the seizure of additional media containing child pornography. Smith, who was previously convicted of second-degree child molestation in Rhode Island, admitted that the child pornography involved prepubescent minors and minors under the age of 12.

At sentencing, Senior United States District Judge Norman A. Mordue determined that the defendant had engaged in a pattern of activity involving the sexual abuse or exploitation of minors by sexually abusing two children under the age of 12. Judge Mordue also imposed a lifetime term of supervised release and ordered the defendant to pay $4,000 in restitution.

“Thanks to the vigilance of a New York State Trooper, Kirkland Smith will spend the next 17 years in prison. We will continue to work with our federal, state, and local law enforcement partners to hold those who view child pornography accountable and make sure our communities are safe for our children," said Acting United States Attorney Grant C. Jaquith.

"I want to commend the outstanding work of our state police members and our federal partners in bringing this case to a successful conclusion. Thanks to this collaboration, we have taken a dangerous individual off the streets. We will not tolerate this type of illegal behavior," said State Police Superintendent George P. Beach II.

“As a convicted sex offender, this defendant has demonstrated a depraved predilection for child exploitation,” said Russell Linstad, Resident Agent in Charge of the Massena, New York office of Homeland Security Investigations. “This prison term will ensure he no longer has access to children or to child exploitative materials.”

This case was investigated by the New York State Police and Homeland Securities Investigations, and was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.

Nicholas Baldwin, 35, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.

Kenneth Gooch, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.

Cedric Jennings, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of one or more firearms.

Marlon Williams, 45, was indicted by a federal grand jury for felon in possession of a firearm.

Anthony Young, 44, was indicted by a federal grand jury for felon in possession of a firearm.

Joseph A. Tolcou, 26, pled guilty to one felony count of felon in possession of a firearm.

Robert Earl Davis, 28, pled guilty to one felony count of felon in possession of a firearm.

Carl L. Winston, 51, pled guilty to one felony count of felon in possession of a firearm.

Sandy Griffin, 19, pled guilty to one felony count of transferring a firearm, knowing that the firearm would be used in a crime of violence that is, armed robbery.

Deangelo H. Young, 24, pled guilty to one felony count of felon in possession of a firearm.

Lorenzo Waller, 40, was sentenced to 120 months in prison for possession of a stolen firearm.

Melvin C. Christian, 35, was sentenced to 102 months in prison for felon in possession of a firearm and possession with intent to distribute cocaine base and heroin.

PROVIDENCE, R.I. – Paul Monteiro, a/k/a Peezy, 32, of Providence, was sentenced today to 144 months (12 years) in federal prison for transporting a 14-year-old Rhode Island girl to New Jersey for the purpose of engaging in commercial sexual activity.

Monteiro and the minor female were located in a hotel room in Franklin Township, New Jersey, on April 6, 2015, by agents and officers from Homeland Security Investigations (HSI), the FBI and Franklin Township police, five months after she was reported missing from a group home in Rhode Island.

At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Monteiro to serve 5 years supervised release upon completion of his term of incarceration. The court deferred ruling on restitution to the victim to a later date. Monteiro pleaded guilty on October 6, 2016, to sex trafficking of a child.

The mandatory minimum sentence in this matter is 120 months imprisonment. The U.S. Sentencing Guidelines range of imprisonment in this matter is 151-188 months. The government recommended the court impose a sentence of 188 months in prison.

Monteiro’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann S. Assumpico, Superintendent of the Rhode Island State Police; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.

In March 23, 2015, Rhode Island State Police detectives received information from the National Center for Missing and Exploited Children of a report of a juvenile female from Rhode Island who had allegedly been sexually molested by an adult male she met on Facebook. The investigation determined that the victim was a 14-year-old girl reported missing on November 20, 2014, from a group home in Rhode Island.

According to court documents, on April 6, 2015, Rhode Island State Police tracked a cell phone in the possession of the missing teenager to Franklin Township, New Jersey. Agents from HSI and the FBI, and police officers from Franklin Township located the missing girl and Paul Monteiro in a hotel room in Franklin Township. Monteiro was arrested by Franklin Township police on New Jersey state charges and detained.

 As a result of information provided to investigators by the victim, an HSI agent located a Backpage.com advertisement depicting the young girl and a solicitation for male companionship. The girl later confirmed for investigators that she was the person in the picture and that Monteiro arranged for her to participate in sex acts with at least two individuals who responded to the advertisement.

The case was prosecuted by Assistant U.S. Attorney John P. McAdams.

The United States Attorney’s Office acknowledges and thanks the Somerset County, New Jersey, Prosecutor’s Office for their assistance in ensuring the quick return of Paul Monteiro to Rhode Island for prosecution in U.S. District Court in Providence.

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ALBUQUERQUE – Santiago Aveles, 31, of Las Cruces, N.M., pled guilty on Aug. 4, 2017, in federal court to charges arising out of a scheme to obtain immigration status for foreign nationals through fraudulent marriages.

On April 19, 2017, Aveles and five co-defendants – Yi Lee, 44, a naturalized U.S. citizen residing in Santa Fe, N.M., and Chia-Jung Chang, 39, Dan Zheng, 32, Lian Xiang Deng, 42, and Xiao-Yin Le, 50, all Chinese nationals illegally in the United States – were indicted and charged with participating in a conspiracy to commit marriage fraud. The indictment also charged Aveles and Zheng with committing marriage fraud for the purpose of evading the federal immigration laws.

The indictment alleged that from June 2016 through March 2017, the six defendants conspired to obtain immigration status for foreign nationals by committing marriage fraud. The scheme involved having U.S. citizens enter into fraudulent marriages with foreign nationals in return for financial gain. Lee allegedly facilitated the conspiracy by arranging meetings between foreign nationals and U.S. citizens and assisting them in obtaining marriage licenses, working permits and green cards for the foreign nationals who paid Lee and the U.S. citizens. According to the indictment, Lee allegedly attempted to arrange fraudulent marriages between certain of his co-defendants and undercover law enforcement agents.

On Aug. 4, 2017, Aveles pled guilty to a felony information charging him with conspiracy and marriage fraud. In entering the guilty plea, Aveles admitted that from Jan. 2016 through April 30, 2017, he and others conspired to commit marriage fraud. Aveles also admitted that he entered into a sham marriage for the purpose of evading immigration laws and in exchange for a monetary payment.

At sentencing, Aveles faces a maximum penalty of five years in federal prison and a fine of up to $250,000. A sentencing hearing has yet to be scheduled.

Aveles’ co-defendants have entered pleas of not guilty to the charges in the indictment. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.

This case was investigated by the Las Cruces office of HSI and is being prosecuted by Assistant U.S. Attorneys Dustin C. Segovia and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office.

ALBANY, NEW YORK - Robert J. Seifert, age 59, of Canandaigua, New York, was sentenced on August 3 to time served (about 12.5 months in jail), as well as 3 years of supervised release, for threatening to commit a mass shooting at the Stratton VA Medical Center in Albany.

The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent in Charge Donna L. Neves of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Northeast Field Office.

On March 31, 2017, Seifert pled guilty to a charge of making an interstate threat to injure another. He admitted that on June 15, 2016, he made a phone call to a Veterans Crisis Line operator in Portland, Oregon, in which he stated “I got an Uzi and I wanna kill everybody at the Albany VA,” “Watch what happens when I get to the Albany VA with my Uzi and I start shooting people up,” and “I’m going to [expletive] kill everybody there.”

This case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General and prosecuted by Assistant U.S. Attorney Michael Barnett.

SACRAMENTO, Calif. — Maurice Antoine Jefferson, 42, of American Canyon, was arrested today charged with possessing marijuana and cocaine for distribution within 1,000 feet of the Will C. Wood High School on Marshall Road in Vacaville and for possessing a firearm as a felon, U.S. Attorney Phillip A. Talbert announced. A federal grand jury returned a three-count indictment against him on August 3, 2017.

According to court documents, Jefferson was the sole proprietor of Shredders Federation clothing store in Vacaville and allegedly used the business as a cover to distribute marijuana and cocaine to high school students and others and as a front for money laundering. When law enforcement officers executed a search warrant at the store in August 2016, they found 6.4 pounds of marijuana, 129 grams of cocaine, and other indicia of drug distribution. Jefferson was carrying a 9 mm pistol with him when Vacaville Police Officers arrived at the business. Jefferson has a felony conviction and is not allowed to possess any firearms.

This case is the product of an investigation by the Vacaville Police Department and the Napa Special Investigations Bureau with assistance from the Solano County District Attorney’s Office. Assistant U.S. Attorneys Timothy H. Delgado and Jason Hitt are prosecuting the case.

If convicted of possessing marijuana with intent to distribute near a school zone, Jefferson faces a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of possessing cocaine with intent to distribute near a school zone, Jefferson faces a maximum statutory penalty of 60 years in prison and a $20 million fine. If convicted of possessing a firearm as a felon, he faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Field Division (“DEA”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), George Beach, the Superintendent of the New York State Police (“NYSP”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and George Beach, Superintendent, New York State Police, announced charges against five defendants for allegedly possessing and conspiring to possess with the intent to distribute over 2,000 kilograms of cocaine, in violation of the maritime drug enforcement laws of the United States.  IVAN CORTES MOLINERO, FRANCISCO JAVIER OCHOA JOAQUIN, MIGUEL CHAVEZ DELGADO, ENEDINO GATAN VARGAS, and FERNANDO MORENO HERNANDEZ were transported to and arrived in the Southern District of New York on August 4, 2017, and are expected to be presented later today, before Magistrate Judge Ronald L. Ellis in Manhattan federal court.

Manhattan Acting U.S. Attorney Joon H. Kim said:  “These five defendants allegedly made a brazen attempt to ship nearly 5,000 pounds of cocaine to the U.S., packing the drugs in a speedboat and then trying to outrun authorities in the waters off of Mexico. I want to thank our law enforcement partners, who stopped this massive shipment of narcotics from arriving at our shores.”

DEA Special Agent in Charge James J. Hunt said:  “From digging border tunnels to using go-fast boats, drug cartels will stop at nothing to get their illicit product into America. This seizure was a significant profit loss to the traffickers with a sobering effect to drug users in the U.S. I would like to thank our law enforcement partners in the U.S, Mexico and Colombia for their diligent work and collaboration on this investigation.”

HSI Special Agent-in-Charge Angel Melendez said:  “This team of perpetrators allegedly attempted to bring more than two tons of cocaine though U.S. borders.  It is the collaborative effort with the DEA and other federal and local agencies that law enforcement was able to interdict this action and keep deadly drugs off American streets.”
 

NYPD Commissioner James P. O’Neill said:  “As alleged, this criminal enterprise attempted to import a significant amount of cocaine to the United States by boat but law enforcement intercepted this shipment, five individual were taken into custody, and were subsequently charged. This investigation demonstrates the commitment of the NYPD to work alongside our federal partners to stop illegal drugs from entering our communities and hold responsible those who work to profit from illegal narcotics.”

State Police Superintendent George P. Beach II said: “We simply will not tolerate this type of alleged illegal drug trafficking activity in New York State. The valuable partnerships developed through the New York Organized Crime Drug Enforcement Strike Force were instrumental in these arrests and the seizure of these lethal narcotics. I want to thank our federal, state and local partners for their ongoing hard work and collaboration on this case, which has resulted in the arrests and removal of five alleged dangerous criminals who profit at the expense of our communities.”

As alleged in the criminal Complaint,[1] filed earlier this week in Manhattan federal court:

The DEA has been investigating a Colombian drug cartel (the “Cartel”) that sends shipments of cocaine to various points around the world by, among other methods, panga boats or “go-fasts.”  Go-fasts are small boats, typically similar in size to speed boats, with hulls of approximately 20 to 50 feet and a maximum capacity of approximately five passengers. 

On or about July 8, 2017, a United States Navy Aircraft (the “Aircraft”) was on routine patrol off the western coast of Mexico and approximately 590 nautical miles south of Mexico.  While there, an occupant of the Aircraft observed what appeared to be a go-fast boat (the “Go-Fast”).  The Aircraft communicated this information to the command of the United States Coast Guard (the “Coast Guard”), which dispatched a Coast Guard cutter (the “Cutter”) to intercept and board the Go-Fast.

The Cutter approached the Go-Fast and launched a helicopter and a patrol boat (the “Patrol Boat”), which proceeded to intercept the Go-Fast.  Occupants of the Patrol Boat (the “Boarding Team”) boarded and gained control of the Go-Fast, where they found CORTES MOLINERO, OCHOA JOAQUIN, CHAVEZ DELGADO, GATAN VARGAS, and MORENO HERNANDEZ. 

The Boarding Team observed numerous bales or large bundles wrapped in black plastic and brown tape on the deck of the Go-Fast.  The bales were in plain sight and occupied a substantial portion of the deck of the Go-Fast.

The Boarding Team recovered approximately 107 bales and one loose brick from the Go-Fast.  Two samples from the bales were field-tested, and tested positive for the presence of cocaine.  In total, the contents of the 107 bales and brick weighed approximately 2,141 kilograms or approximately 4,720 pounds.

*                      *                      *

CORTES MOLINERO, 30, OCHOA JOAQUIN, 40, CHAVEZ DELGADO, 46, GATAN VARGAS, 51, and MORENO HERNANDEZ 31, are citizens of Mexico.  Each defendant is charged with one count of conspiring to violate maritime drug enforcement laws and one count of violating maritime drug enforcement laws by possessing with the intent to distribute cocaine.  Each defendant faces a maximum sentence of life imprisonment and a mandatory minimum sentence of ten years’ imprisonment.  The statutory maximum penalties and mandatory minimum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Kim praised the outstanding efforts of the DEA’s New York Drug Enforcement Strike Force, which is comprised of officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations, the New York State Police, and the U.S. Marshal Service, among other agencies.  Mr. Kim also praised the outstanding efforts and assistance provided by the Coast Guard, United States Customs and Border Protection, the United States Navy, and the Naval Criminal Investigative Service.

This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorney Jane Kim is in charge of the prosecution. 

The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.           

NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to charges of conspiracy, bank fraud, and identity theft.

According to the statement of facts filed with the plea agreement, Bryan Lewis, 28, was employed as Sales Consultant at Priority Chevrolet in Chesapeake from 2011 until June 2016. In late 2014, Lewis agreed to provide an associate, Joseph Edmonds, with his customers’ personal identifying information for use in an account opening and takeover scheme through which the two planned to obtain money from bank, credit, retail, and phone accounts opened in those customers’ names. Between December 2014 and January 2016, Lewis provided Edmonds with the names, dates of birth, and social security numbers of at least 20 actual and potential Priority Chevrolet customers with whom Lewis had dealt during that same period. Neither the customers nor Priority Chevrolet knew of or consented to Lewis’s transfer of this information to Edmonds. Edmonds used the information that Lewis provided to apply for, open, and access accounts through at least 12 financial institutions and retailers. Edmonds then used these accounts to conduct transactions through which he attempted to obtain nearly $60,000. For his participation in the scheme, Lewis received approximately $1,500, all of which derived from the proceeds Edmonds obtained through his use of the information Lewis had provided.

Lewis pleaded guilty to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Trial of his case was set to begin tomorrow morning in Newport News. Lewis faces a maximum penalty of 30 years in prison, along with a mandatory, consecutive penalty of 2 years in prison when sentenced on November 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Richard W. Myers, Chief of Newport News Police, made the announcement after U.S. District Judge Mark S. Davis accepted the plea. Assistant U.S. Attorney Kaitlin C. Gratton and Special Assistant United States Attorney Alexander B. Gottfried are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-20.

MARTINSBURG, WEST VIRGINIA – Two Kearneysville, West Virginia residents were indicted by a federal grand jury on July 25, 2017 on drug distribution charges, Acting United States Attorney Betsy Steinfeld Jividen announced.

Gerald Gibbs, age 29, was indicted on one count of “Conspiracy to Distribute a Controlled Substance,” two counts of “Distribution of a Controlled Substance,” and two counts of “Possession with Intent to Distribute a Controlled Substance.”

Jennifer Gibbs, age 31, was indicted on one count of “Conspiracy to Distribute a Controlled Substance,” two counts of “Distribution of a Controlled Substance,” and two counts of “Possession with Intent to Distribute a Controlled Substance.”

The crimes are alleged to have taken place from June 2016 to March 2017 in Jefferson County, West Virginia.

Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, is investigating. 

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

FRESNO, Calif. — David Ryan Burchard, 40, of Merced, pleaded guilty today to conspiracy to distribute and to possess with intent to distribute marijuana on dark web marketplaces, U.S. Attorney Phillip A. Talbert announced.

According to the criminal complaint, Burchard, using the moniker “Caliconnect,” was a major narcotics vendor on the Silk Road and other dark web marketplaces, including Agora, Abraxas, and AlphaBay. Dark-web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. In addition, dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly in bitcoin. While not inherently illegal, digital currency is used by dark web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.

According to the complaint, Burchard accepted orders for marijuana and cocaine on dark web marketplaces and then mailed the narcotics from post offices in Merced and Fresno County to his customers throughout the United States. Burchard was paid primarily in bitcoin. Burchard conducted sales in excess of $1.4 million on Silk Road before that dark web marketplace was closed. The complaint alleges that after federal law enforcement shut down the Silk Road website and arrested its founder in October 2013, Burchard transferred his narcotics business to Agora and then to AlphaBay, which are other dark web marketplaces.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service-Criminal Investigation, the U.S. Postal Inspection Service, and the Fresno Police Department. Assistant U.S. Attorney Grant Rabenn is prosecuting the case.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

Burchard is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on October 30, 2017. Burchard faces a maximum statutory penalty 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

PROVIDENCE – Gregory Lee, 48, of Provincetown, MA, was ordered detained in federal custody following an initial appearance today in U.S. District Court in Providence on a criminal complaint charging him with possession with intent to distribute methamphetamine.

Lee was arrested by Warwick Police on Saturday after they allegedly seized more than 230 grams of methamphetamine from his vehicle.

According to an affidavit in support of a criminal complaint, it is alleged that Warwick Police received a call Saturday morning reporting that an individual was passed out in a vehicle parked in a retail store parking lot. After several attempts, an officer was able to roust Lee, who appeared nervous and then began to look around his vehicle, under his body and legs, and grab various items within the vehicle. An officer ordered Lee to exit the vehicle.

According to the affidavit, after Lee exited the vehicle, at least twice he allegedly attempted to the shield the interior of the vehicle from police. After allegedly denying he was in possession of any illegal narcotics, Lee agreed to allow the officers to search his vehicle. It is alleged in the affidavit that inside a backpack located on the front seat of the vehicle officers seized two large plastic bags, which tested positive for methamphetamine.  The bags of methamphetamine weighed 115.9 and 115.6 grams respectively. 

Lee’s arrest and detention are announced by Acting United States Attorney Stephen G. Dambruch and Warwick Police Chief Colonel Stephen M. McCartney.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.

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TOPEKA, KAN. - A Wabaunsee County woman who pleaded guilty to fraud while serving as executor of her mother’s estate was sentenced Monday to two years in federal prison, U.S. Attorney Tom Beall said.

Julie D. Woodland, 56, Maple Hill, Kan., pleaded guilty to one count of interstate transportation of funds obtained by fraud. In her plea, she admitted she served as trustee of trusts set up by her parents, Stephen W. Dibble and Elaine R. Dibble. It was her parents’ intent that proceeds of the trusts be shared equally among Woodland and her siblings, Lance A. Dibble and Stan Dibble. Woodland also was executor of her mother’s estate.

Woodland sold a condo in Texas belonging to the trust for $270,000. She distributed half the proceeds to her brother, Stan Dibble, and she kept the rest. Her brother, Lance Dibble, requested an accounting of the trust funds, but she refused to provide the information.

Beall commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.

WICHITA, KAN. - A Wichita man was sentenced Monday to 11 years in federal prison for a series of armed robberies, U.S. Attorney Tom Beall said.

Brandon V. Wells, 23, Wichita, Kan., pleaded guilty in April to five counts of robbery and one count of brandishing a firearm during a robbery.

In his plea, Wells admitted to the following robberies:

• Jan. 27, 2017, Circle K, 1250 S. Rock Road, Wichita.

• Jan. 28, 2017: O’Reilly Auto Parts, 4818 E. Lincoln, Wichita.

• Jan. 30, 2017: O’Reilly Auto Parts, 4636 S. Broadway, Wichita.

• Feb. 4, 2017: O’Reilly Auto Parts, 4130 W. Central, Wichita

• Feb. 5, 2017: O’Reilly Auto Parts, 3220 N. Rock, Wichita.

During the robberies, Wells and an accomplice threatened employees with a weapon and demanded money. The firearm charge is tied to a Feb. 6, 2017, robbery at O’Reilly Auto Parts, 3109 E. Pawnee.

Beall commended the Wichita Police Department, the FBI Safe Streets Task Force and Assistant U.S. Attorney Lanny Welch for their work on the case.

DENVER – Brandi Leonard, age 20, of Colorado Springs, Colorado, was sentenced last week by U.S. District Court Judge Philip A. Brimmer to serve 240 months (20 years), followed by 10 years on supervised release for production of child pornography, Acting U.S. Attorney Bob Troyer, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced. Co-defendant Richard Hennis, age 41, of Colorado Springs, Colorado, was previously sentenced also by Judge Brimmer to serve 324 months (27 years) in federal prison for the production and transportation of child pornography. Following his prison sentence, Hennis was also ordered to serve 10 years of supervised release. Defendant Leonard, who appeared at the hearing in custody, was remanded at its conclusion.

Leonard and co-defendant Hennis were first charged by criminal complaints on March 11, 2016. They were then indicted by a federal grand jury in Denver on April 5, 2016. Leonard pled guilty on April 13, 2017, and was sentenced on August 3, 2017. Hennis pled guilty before Judge Brimmer on November 21, 2016, and was sentenced on April 19, 2017.

According to evidence presented in open court, as well as information contained in public filings, including the stipulated facts contained in Leonard’s plea agreement, Leonard and Hennis engaged in online chats spanning approximately one month. Leonard told Hennis that she had sexually abused an infant. Hennis encouraged Leonard to sexually abuse the infant again, to take pictures or video of the abuse, and to send them to him. Leonard did exactly what Hennis had asked. Law enforcement recovered the pictures that were produced of the infant from Hennis’s phone. Hennis then sent the sexual abuse images of the infant to another individual he was communicating with online.

During their chats, the two defendants discussed in graphic detail kidnapping, raping, killing and dismembering a child between the ages of 4 and 8 years old. Leonard twice during the chat indicated that she didn’t intend to go through with it.

“Understand this: federal law enforcement has highly motivated, expert teams standing ready to present the harshest possible punishment if you victimize an infant,” said Acting U.S. Attorney Bob Troyer.

“Crimes perpetrated against children are especially heinous,” said John Eisert, acting special agent in charge of HSI Denver. “I’m proud of the work HSI and our law enforcement partners did to identify these malicious predators and rescue the victim in this egregious case — as well as prevent potential future crimes against other children.”

“The Colorado ICAC would like to thank all individuals that assisted with this investigation,” said ICAC Commander for Colorado, Lieutenant Christina Sheppard of the Colorado Springs Police Department. “Due to their tireless efforts a conviction was obtained and the defendant was sentenced appropriately.”

This case was investigated by HSI and the Colorado Springs Police Department’s ICAC Unit, with support provided by the Limon Police Department.

The defendants were prosecuted by Assistant U.S. Attorney Alecia L. Riewerts, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Criminal Division.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.