Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976

NEWS RELEASE SUMMARY– August 24, 2017

SAN DIEGO– Luis Eudoro Valencia, of Perris, California, was charged yesterday with smuggling a Bengal tiger cub into the United States from Mexico.

According to the complaint, Valencia drove into the Otay Mesa Port of Entry with the tiger cub on the floor of the vehicle. It is alleged that Valencia failed to declare the tiger cub to Customs and Border Protection officers. The tiger cub was discovered in the secondary inspection area.

According to the complaint, the defendant stated that he had purchased the tiger for $300 from an individual he encountered walking a full-sized tiger on a leash in Tijuana. All species of tigers are listed as endangered under the Endangered Species Act, and are protected under Appendix I of the Convention on International Trade in Endangered Species. To legally import an endangered species into the United States requires a permit from the U.S. Fish & Wildlife Service, and the importation must be accompanied by a Declaration Form 3-177 filed with Fish & Wildlife. According to the complaint, the defendant lacked the required permit and did not file the required declaration.

The Bengal tiger (Panthera tigris tigris) is the most populous subspecies of tiger. The Bengal tiger is native to India, Bangladesh, Nepal and Bhutan. According to the World Tiger Recovery Project, there are only 2,500 wild specimens on earth and the population of Bengal tigers is decreasing.

Valencia was released on a $10,000 personal surety bond and ordered to appear for a preliminary hearing on September 5, 2017, at 1:30 pm before U.S. Magistrate Judge Bernard Skomal.

DEFENDANT                                    Case No. 17-MJ-3013

Luis Eudoro Valencia                       Age: 18                 Perris, California

SUMMARY OF CHARGES

Smuggling, 18 U.S.C. § 545

Maximum penalty: 20 years’ prison, fine of $250,000, or twice the gross gain or loss caused by the offense, restitution, forfeiture of proceeds generated from the, five years of supervised release.

Unlawful Importation of Wildlife, 16 U.S.C. §§1538(a)(1)(A) and 1540(b)

AGENCIES

U.S. Fish & Wildlife Service

Homeland Security Investigations

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

RICHMOND, Va. – A federal jury convicted a former University of Virginia football player today of his role in a $10 million fraud scheme.

According to court records and evidence presented at trial, Merrill Robertson, Jr., 36, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth management, LLC, with co-conspirator Sherman Carl Vaughn. From 2009-2016, Robertson and Vaughn solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and in the National Football League, while Vaughn focused on developing investment opportunities.

“Behind every lie is a choice,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Mr. Robertson lied to his friends and mentors, and many times had the opportunity to come clean and tell the truth. Instead, he chose to continue his lies and fraud, which had devastating effects on his victims. I applaud the terrific efforts of the trial team and our law enforcement partners in investigating and prosecuting this important case.”

Robertson and Vaughn led individuals to believe they were experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.

“There are consequences for people's choices,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office. “Today Mr. Robertson was convicted for his scheme of manipulating friends and associates into trusting him with their savings and ultimately using it for his personal gain. I would like to commend the investigative team and the United States Attorney's Office for their dedication to bring justice to the victims associated with this case.”

As a result of this conspiracy, Robertson and Vaughn fraudulently obtained more than $10 million from over 50 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.

“The longevity and scope of Mr. Robertson’s scheme to defraud investors is simply astonishing,” said Kimberly Lappin, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Through the joint efforts of IRS Criminal Investigation and our law enforcement partners, Mr. Robertson has been brought to justice and convicted by a jury of his peers. Today’s verdict is a reminder that IRS-CI will remain vigilant in our investigation of these schemes in order to combat this type of criminal conduct.”

“This case is merely the latest in a long tradition of Postal Inspectors relentlessly pursuing anyone who misuses the nation's mail system to commit fraud and take advantage of the American public.” said Inspector in Charge Robert Wemyss. “I'm proud of the work done by all the agents involved in this investigation, and look forward to the continued efforts of the Richmond Securities Fraud Task Force.”

Robertson was convicted of mail fraud, bank fraud, and money laundering. He faces a maximum penalty of 330 years in prison when sentenced on December 6. 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, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge John A. Gibney, Jr., accepted the verdict. Assistant U.S. Attorneys Katherine Lee Martin and Stephen E. Anthony are prosecuting the case.

The Virginia State Corporation Commission Division of Securities and Retail Franchising assisted with the investigation.

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. 3:16-cr-33.

Nashville based Employment & Assessment Solutions, Inc. (“EASI”), and its principal, Chris Manus, have agreed to pay $550,000 to settle allegations that they violated the False Claims Act, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. The alleged conduct involved the submission of false claims for payment to TennCare, Tennessee’s Medicaid Program, for the provision of transportation services to TennCare beneficiaries. Mr. Manus and EASI have each also agreed to a nine-year exclusion from Medicaid, Medicare, and all Federal Health Care programs.

“Enforcement of the False Claims Act is a priority of the Department of Justice and this Office,” said Acting U.S. Attorney Jack Smith. “The already overburdened Medicaid Program simply cannot withstand making payments for services that were never rendered. Anytime we discover violations of the False Claims Act, where corporations are seeking to enrich themselves through dishonest methods, we will seek the appropriate remedy for the offending corporation and its principals.”

The settlement resolves allegations by the United States and State of Tennessee that EASI and Manus, caused the submission of false claims to TennCare for transportation services which were never provided, including claims for patients who were actually incarcerated or hospitalized at the time of the purported transport. The alleged conduct occurred between January 2, 2010, and April 30, 2014.

Under the terms of the settlement, the United States will receive $302,775 and the State of Tennessee will receive $247,225.

"This company allegedly billed TennCare for ghost transports where the program was paying for an empty seat as if it contained a patient," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. "This is the most egregious type of False Claims Act violation - where no service was actually provided and the company got paid for doing nothing."

“The public rightfully expects funds to go to those patients who need these services,” said TBI Director Mark Gwyn. “We are fortunate to have a strong relationship with our federal and state law enforcement partners in continuing to pursue allegations of false claims.”

“Pursuing violations of the False Claims Act protects Tennessee tax dollars and sends a strong message to individuals attempting to take advantage of the system,” Attorney General Herbert H. Slatery III said. “Our office will continue to work with our state and federal partners to combat healthcare fraud.”

This matter was investigated by the Tennessee Bureau of Investigation, Department of Health and Human Services Office of Inspector General, Tennessee Attorney General’s Office, and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Sarah K. Bogni. The claims settled by this agreement are allegations only, and there has been no determination of liability.

If convicted, McDavid faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Rita Rumbelow.

Chicago Man Charged with Gun Crime

Jelani Faulk, 21, Chicago, is charged with being a felon in possession of a firearm. The indictment alleges that on August 16, 2017, he possessed a 9mm handgun.

If convicted, Faulk faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Aaron Wegner.

Rusk County Man Charged with Theft from the Mail

Kenneth Grunewald, 50, Bruce, Wis., is charged with two counts of stealing items from the U.S. Mail while an employee of the U.S. Postal Service in Winter, Wis. The indictment alleges that in January and May 2015, Grunewald stole two rebate cards from mail entrusted to him.

If convicted, Grunewald faces a maximum penalty of five years in federal prison. The charges against him are the result of an investigation by the U.S. Postal Service, Office of Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Antonio Trillo.

MARTINSBURG, WEST VIRGINIA – A Gwynn Oak, Maryland man pled guilty today to heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.

Dennis Royster, age 41, pled guilty to one count of “Distribution of Heroin.” Royster admitted to distributing heroin in Berkeley County in August 2014.

Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney Carrie Lehman prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
 
U.S. Magistrate Judge Robert W. Trumble presided.

ATLANTA - Joseph J. Erves, MARTA’s former Senior Director of Operations, has been charged with conducting a false invoice scheme that resulted in MARTA paying more than $500,000 for maintenance work that was never performed and for funneling most of the money back into his personal bank accounts.

“Erves was entrusted to safeguard the taxpayer funds used to run our public transportation authority, and instead he is charged with stealing a half million dollars to buy a Porsche and other high-end purchases. This is a classic case where a public official’s short-term gain in stealing from taxpayers comes crashing down and ends with criminal charges,” said U.S. Attorney John A. Horn.

“The federal investigation and resulting federal charges against Mr. Erves will hopefully send a message to others that such ill-conceived schemes to redirect corporate or public funds to their own accounts is a criminal act with tough consequences. The FBI would like to thank the MARTA Police and their investigators for their invaluable assistance in getting this matter advanced for prosecution,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

According to U.S. Attorney Horn, the charges, and other information presented in court: the Metropolitan Atlanta Rapid Transit Authority (“MARTA”) is the principal public transportation operator in the Atlanta metropolitan area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed in 1965, MARTA is a multi-county governmental agency with a 2016 annual budget of more than $880 million.

From 1993 to 2017, Erves worked for MARTA, ultimately serving as its Senior Director of Operations. In that position, Erves oversaw the maintenance of all of MARTA’s buses and rail cars and had the authority to approve payments up to $10,000 to vendors for work performed on behalf of MARTA.

Beginning in or about 2010, Erves retained three different vendors purportedly to perform maintenance projects for MARTA, including repairing brake testing equipment and fixing various MARTA tools and equipment. From approximately June 2010 to December 2016, Erves had fake invoices prepared on behalf of the three vendors for more than 40 maintenance projects for which no work was performed.

Erves then used the false invoices as bases to authorize payments to the three vendors. In many cases, Erves personally approved payments to the vendors knowing that the vendors had not performed any work for MARTA.

After being paid, the three vendors funneled most of the money received from MARTA into Erves’s personal bank accounts. Subsequently, Erves used the money deposited into his accounts to pay personal expenses, such as multiple purchases at high-end department stores and the purchase of a Porsche 911. Based on Erves’s authority and representations, MARTA paid the three vendors more than $500,000 for maintenance projects where no worked was actually performed.

Erves, 52, of Lithonia, Georgia, has been charged in a criminal information with one count of Federal Program Theft. Erves is expected to plead guilty to the charge shortly after arraignment.

This case is being investigated by the Federal Bureau of Investigation and the MARTA Police Department.

Assistant U.S. Attorneys Jeffrey W. Davis and Alison Prout are prosecuting the case.

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

KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man was sentenced in federal court today for a nearly $460,000 bank fraud scheme that involved stolen checks and false identities, with much of the illegal proceeds used to purchase gold coins that remain hidden.

Michael Keefe White, 61, of Winnetka, Calif., was sentenced by U.S. District Judge Beth Phillips to nine years and three months in federal prison without parole. The court also ordered White to pay $288,769 in restitution.

On Feb. 9, 2017, White pleaded guilty to bank fraud, aggravated identity theft and money laundering. White admitted that he obtained checks stolen from the mail, then used counterfeit identification (such as driver’s licenses with his photo and the name of a victim) to open bank accounts in Missouri and other states in which to deposit the stolen checks as well as counterfeit checks modeled from the stolen checks. White then withdrew or wire transferred the money out of the account.

According to court documents, White laundered his bank fraud proceeds through gold coin companies in California; he wired the proceeds of his fraud to purchase at least $227,628 in gold coins in May and June 2016. The court earlier found White breached his plea agreement when he did not truthfully account for the gold coins he bought with proceeds of the bank frauds.

White used numerous counterfeit driver’s licenses to open bank accounts in both Kansas City and Portland, Ore., in a total attempted fraud amount of at least $977,441.

The specific bank fraud to which White pleaded guilty involved an account at a Parkville, Mo., bank in which White deposited a $48,700 counterfeit check. White was arrested at Bank Liberty while trying to redeem a $167,728 check payable to another victim whose identity White had also stolen.

In addition to this case, according to court documents, White committed similar bank frauds in Portland from 2014 to 2016, in which he opened accounts in the names of other men, deposited fraudulent checks, and withdrew $40,614 before the checks were discovered to be counterfeit. White intended to defraud the Portland banks of $517,545. Including his criminal activity in both Kansas City and Portland, the total actual loss from White’s bank frauds is $288,769 and the total intended loss is $977,441.

Court documents note that White, who has never held legitimate employment, has an extensive and uninterrupted criminal history.

This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, U.S. Department of Treasury – Office of Inspector General and the U.S. Postal Inspector Service.

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MICHAEL FERRARIE EUBANKS, age 58, of Atoka, Oklahoma, and HYDIE ROYLENE EUBANKS, age 59, of Atoka, Oklahoma were sentenced to 3 months imprisonment, and 3 years of supervised release respectively, for THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Sections 641 and 2; CONCEALMENT OF A MATERIAL FACT, in violation of Title 42, United States Code, Section 408(a)(4) and Title 18, United States Code, Section 2, and FALSE STATEMENT, in violation of Title 42, United States Code, Section 408(a)(2) and Title 18, United States Code, Section 2. They were also ordered to pay $67,633.00 to the Social Security Administration.

Evidence at trial proved that from in or about September 2010, and continuing through March 10, 2016, within the Eastern District of Oklahoma, defendants, MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, did knowingly and willfully embezzle, steal, and convert to their own use, money and things of value from the Social Security Administration (“SSA”), a department or agency of the United States, which money had been paid to the defendants as Social Security disability payments for the benefit of MICHAEL FERRARIE EUBANKS to which the defendants knew MICHAEL FERRARIE EUBANKS was not entitled, and having a value in excess of $1,000.00.

Evidence at trial further proved that from on or about September 2010, and continuing through March 10, 2016, in the Eastern District of Oklahoma, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, in a matter within the jurisdiction of Social Security Administration, having knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments, concealed and failed to disclose such event with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS intentionally concealed that MICHAEL FERRARIE EUBANKS secured gainful employment in order to receive and continue to receive Disability Income payments made by the Social Security Administration to them. By such action, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS took approximately $67,633.00 in Social Security Disability Income payments to which they were not entitled.

Evidence at trial further proved that on or about November 30, 2015, in the Eastern District of Oklahoma, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, did knowingly make or cause to be made any false statement or representation of a material fact to the Social Security Administration in any application for any payment or for a disability determination. Specifically, MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS jointly completed a Continuing Disability Review Report wherein MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS stated that MICHAEL FERRARIE EUBANKS had not worked since the date of MICHAEL FERRARIE EUBANKS last medical disability determination.

The verdict obtained was the result of an investigation by the Social Security Administration’s Office of Inspector General.

The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendants will report to a federal facility at which the nonparoleable sentences will be served.

Assistant United States Attorney Melody Nelson and Assistant United States Attorney Rob Wallace represented the United States.

TRENTON, N.J. – A Trenton man was sentenced today to 84 months in prison for his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, Acting U.S. Attorney William E. Fitzpatrick announced.

Thomas Rogers, a/k/a “Herb,” a/k/a “T-Rod,” 23, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part of his guilty plea, Rogers admitted possessing at least one firearm during the conspiracy. Judge Wolfson imposed the sentence today in Trenton federal court.

In December 2016, Rogers and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah. Since then, six of the 10 defendants, including Abdullah, have pleaded guilty.

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

From June 2015 through December 2016, Rogers and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton. Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that defendant Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including from defendants Jose Joaquin Torres-Mezquita and Ileana Sanchez. Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Rogers.

Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with their narcotics conspiracy, Rogers and other members of the Abdullah DTO maintained joint access to multiple firearms.

In addition to the prison term, Judge Wolfson sentenced Rogers to five years of supervised release.

Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.

He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.

The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

Defense counsel: David R. Oakley Esq., Princeton

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on August 9, 2017, Kerry L. Boltz, Sr., age 54, of Jonestown, Pennsylvania, and Chester L. Hubler, III, age 38, of Lykens, Pennsylvania, were indicted by a federal grand jury in a superseding indictment for multiple drug trafficking crimes. Boltz was also indicted on firearms charges. The case was unsealed on August 23, 2017.

According to United States Attorney Bruce D. Brandler, the superseding indictment alleges that Boltz and Hubler conspired to distribute five grams or more of methamphetamine between February 2017 and April 2017, and that the two distributed methamphetamine on multiple occasions during that time period. The superseding indictment also alleges that Boltz distributed heroin and fentanyl, unlawfully possessed firearms (Marlin Firearms Company 336CS 30-30 caliber rifle, a Mossberg Model 46M 22-caliber rifle, and Weatherly Orion 12-guage shotgun) as a previously convicted felon, and possessed a short-barreled shotgun (Remington Wingmaster Model 870 12-gauge shotgun) that was not properly registered.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury returned a 22-count indictment charging 15 individuals from Pennsylvania, New York and Connecticut with various narcotics trafficking and firearms offenses. All 15 defendants are alleged to have conspired to distribute heroin, crack cocaine and fentanyl from on or about March 2015 through March 2017. The indictment was returned on June 20, 2017, but remained under seal until all 15 defendants were apprehended.

The individuals charged in the indictment are:

1. Charles Gibson, Jr. of the Bronx, NY, age 38;

2. Victoria Kraynak of Plymouth, PA, age 26;

3. Amanda Romano of Wilkes-Barre, PA, age 43;

4. John Maybank of the Bronx, NY, age 24;

5. Luis Nevarez of the Bronx, NY, age 19;

6. Adam Gottstein of Kingston, PA, age 30;

7. Cara Dubaskas of Kingston, PA, age 25;

8. Kassandra Martin of Wilkes-Barre, PA, age 36;

9. Tanay Jones of the Bronx, NY, age 25;

10. William Waring of the Bronx, NY, age 26;

11. Siobhan Daniels of Wilkes-Barre, PA, age 30;

12. Josh Lenchick of Luzerne, PA, age 28;

13. Chad Eckrote of Plymouth, PA, age 24;

14. Adonis Smith of New London, CT, age 37;

15. Kristyna Shotwell of Plymouth, PA, age 29.

According to United States Attorney Bruce D. Brandler, in addition to the conspiracy charge against all defendants, the indictment charges Gibson, Kraynak, Romano, Maybank, Nevarez, Dubaskas, Gottstein, Daniels, Waring, Jones, Martin, and Smith with a combined 18 counts of distributing and possessing with intent to distribute heroin, crack cocaine, and fentanyl. Defendants Cara Dubaskas, Adam Gottstein, and Kristyna Shotwell also are charged with maintaining drug premises. Amanda Romano is charged with possessing a firearm in furtherance of her trafficking activities.

Several of the defendants are charged with conspiring to distribute drug weights that trigger mandatory minimum sentences:

• Defendants Gibson and Kraynak are charged with conspiring to distribute in excess of one kilogram of heroin, which is the equivalent of at least 40,000 individual doses of heroin, and carries a 10-year mandatory minimum term of imprisonment.

• Defendants Maybank, Nevarez, Gottstein, Dubaskas, Martin, Jones, Waring, Daniels, and Lenchick are charged with conspiring to distribute in excess of 100 grams of heroin, which is the equivalent of at least 4,000 individual doses of heroin, and carries a five-year mandatory minimum term of imprisonment.

• Defendants Gibson, Kraynak, Romano, Maybank, Gottstein, and Dubaskas are charged with conspiring to distribute in excess of 280 grams of crack cocaine, which carries a 10-year mandatory minimum term of imprisonment.

• Defendants Nevarez, Martin, Jones, Waring, Daniels, and Lenchick are charged with conspiring to distribute in excess of 28 grams of crack cocaine, which carries a five-year mandatory minimum term of imprisonment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kingston Police Department, and by the Luzerne County Drug Task Force. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.

The case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.

The case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for the most serious offenses is up to life in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RICHARD PISKE, 34, of Norwalk, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of distribution of heroin.

This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to court documents and statements made in court, early in the morning of June 29, 2016, Bridgeport Police and emergency medical personnel responded to a report of an apparent overdose and found a 25-year-old female dead on a bedroom floor

The investigation revealed that, on June 28, 2016, the victim’s boyfriend purchased a quantity of heroin from PISKE. Later that day, the victim and her boyfriend ingested some of the heroin that had been purchased from PISKE.

The boyfriend reported that he passed out from the heroin that he had ingested and, when he awoke, his girlfriend was dead.

The Office of the Chief Medical Examiner has determined that the victim died from acute heroin, cocaine and alcohol intoxication.

PISKE was arrested on a criminal complaint on September 29, 2016.

PISKE is scheduled to be sentenced by U.S. District Judge Jeffrey Alker Meyer on November 15, 2017, at which time he faces a maximum term of imprisonment of 20 years. He is released on a $25,000 bond.

This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Bridgeport Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.

This case is being prosecuted by Assistant U.S. Attorney Michael E. Runowicz.

ALBUQUERQUE – Felipe T. Castillo, 38, of Hobbs, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to assaulting a federal law enforcement officer under a plea agreement with the U.S. Attorney’s Office.

Castillo was arrested on June 13, 2017, on a criminal complaint charging him with being a felon in possession of a firearm. According to the complaint, Castillo pointed a firearm at a DEA Task Force Officer on May 31, 2017, in Lea County, N.M. The complaint further indicates that Castillo was on parole for a prior firearms offense when he assaulted the Task Force Officer by pointing a firearm at him. Court documents indicate that Castillo was previously convicted in Texas of engaging in organized criminal activity in 2000, and discharging a firearm in 2002.

During yesterday’s change of plea hearing, Castillo pled guilty to a felony information charging him with assault on a federal officer. In entering the guilty plea, Castillo admitted that on May 31, 2017, he pointed a firearm at a DEA Task Force Agent who was engaged in his official duties.

At sentencing, Castillo faces a maximum penalty of eight years in federal prison. Castillo remains in custody pending a sentencing hearing, which has yet to be scheduled.

This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and FBI and the Hobbs Police Department. Assistant U.S. Attorneys Terri J. Abernathy and Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.

GREENSBORO, N.C. – An individual who pleaded guilty to receipt of child pornography was sentenced today, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.

HAROLD WAYNE LAIL, 75, of Burlington, North Carolina, pleaded guilty on June 5, 2017, to one count of receipt of child pornography. He was sentenced by United States District Judge Loretta C. Biggs to 60 months imprisonment followed by 10 years supervised release. LAIL was also ordered to pay $30,500 in restitution and forfeit an Apple iMac and several storage devices containing child pornography.

Investigators searched LAIL’s home on June 30, 2016, after discovering that someone tried to access child pornography using LAIL’s IP address. They found thousands of images and videos of child pornography on a computer and storage devices in LAIL’s home.

This case was investigated by members of the North Carolina Internet Crimes Against Children (ICAC) Task Force, including Homeland Security Investigations and the Burlington Police Department.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.

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GREENSBORO, N.C. – An individual who pleaded guilty to receipt of child pornography was sentenced today, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.

DANTRE DAVIS, 28, of Greensboro, North Carolina, pleaded guilty on June 5, 2017, to one count of receipt of child pornography occurring from February 2016 to April 2016. He was sentenced by United States District Judge Loretta C. Biggs to 72 months imprisonment followed by 15 years supervised release. DAVIS was also ordered to forfeit a laptop computer and two external storage drives containing child pornography.

Investigators searched DAVIS’ home on April 5, 2016, after observing child pornography being shared online from DAVIS’ IP address. They found thousands of images and videos of child pornography on the computer and storage devices in DAVIS’ home. At the time, Davis was a licensed physician assistant in North Carolina.

The investigation was led by the Guilford County Sheriff’s Office, a member of the North Carolina Internet Crimes Against Children (ICAC) Task Force.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.

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Matthew McAlpin, 41, of Elkins Park, Pennsylvania was charged today by Information with one count of possession of child pornography, announced Acting United States Attorney Louis D. Lappen.

It is alleged that on December 10, 2015, McAlpin possessed over five thousand images or videos of child pornography, or visual depictions of minors engaged in sexually explicit conduct, and that his collection included depictions involving the sexual victimization of minors under the age of 12 years.

If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, a term of supervised release, $250,000 fine, mandatory restitution, forfeiture, a $100 special assessment, and a $5,000 additional special assessment under the Justice for Victims of Trafficking Act.

The case was investigated by Homeland Security Investigations, Abington Township Police Department, and the Montgomery County Detective Bureau. It is being prosecuted by Assistant United States Attorney Priya T. De Souza.

BROOKLYN, N.Y. – Two French bank managers were indicted today for participating in a scheme to transmit false and misleading information related to the London Interbank Offered Rate (LIBOR), a global benchmark interest rate to which trillions of dollars of financial transactions are tied.

Acting United States Attorney Bridget M. Rohde of the Eastern District of New York, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and Assistant Director-in-Charge Andrew Vale of the Federal Bureau of Investigation’s (FBI) Washington Field Office made the announcement.

“The integrity of our global financial markets relies upon each of its participants providing complete and accurate information,” stated Acting United States Attorney Rohde. “As alleged, the defendants acted in contravention of this principle and the laws designed to uphold it by causing their employer, Société Générale, to submit falsified USD LIBOR rates, which in turn effected financial transactions across markets worldwide. We will continue to vigorously root out and prosecute such crimes.”

"The allegations in today’s indictment suggest complete and total disregard for the integrity of the financial markets and for innocent consumers and everyday people whose personal finances hinge on the interest rates they pay on various loans,” said Acting Assistant Attorney General Blanco.  “Cases like this demonstrate the crucial role of the Department in protecting people and their hard earned money, securing our financial markets for economic growth and prosperity, and for fighting white collar crime to protect our nation from bad actors, wherever they may reside.”

“Fraudulently manipulating the LIBOR and deceiving the financial market to affect world-wide financial transactions have far reaching consequences, and such criminal activity will not be tolerated,” said Assistant Director in Charge Vale.  “Today’s indictment should stand as a warning that the FBI remains committed to holding those accountable who flout the law in their attempts to take advantage of international financial markets.  The FBI Washington Field Office has dedicated significant time and resources, to include the expertise of special agents, forensic accountants and analysts, to investigating these complex financial schemes, and I want to thank the tireless investigative team as well as our colleagues at the Department of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York for their hard work.”

Danielle Sindzingre, and Muriel Bescond, both of France, were charged in the Eastern District of New York with one count of conspiring to transmit false reports concerning market information that tends to affect a commodity and four counts of transmitting such false reports.  Sindzingre and Bescond were, respectively, the global head of treasury and the head of the Paris treasury desk at French financial institution Société Générale, S.A.

According to the indictment, LIBOR was a benchmark interest rate that was calculated for various currencies and maturities.  The U.S. Dollar LIBOR was constructed by compiling submissions from leading banks around the world (“contributor panel banks”), excluding the four highest and lowest submissions, and averaging the remainder to obtain each day’s LIBOR “fix.”  Each contributor panel bank was required under the rules of the British Bankers’ Association (BBA) to submit the rate at which it believed it would be charged if it sought offers to borrow money from other banks in the London interbank market.  LIBOR was used to price futures contracts, interest rate swaps and other financial products worldwide.  It was also used to calculate some consumer interest rates, like certain home mortgage and credit card interest rates.  In February 2009, Société Générale joined the contributor panel for U.S. Dollar LIBOR.

As alleged in the indictment, between approximately May 2010 and approximately October 2011, Sindzingre and Bescond knowingly instructed their subordinate employees at Société Générale’s Paris treasury desk to submit inaccurately low LIBOR contributions in an effort to make it appear that Société Générale was able to borrow money at more favorable rates than it actually was.  This was allegedly done with knowledge that the true rates at which Société Générale was borrowing money were higher than the rates it was submitting as part of the LIBOR calculation.  On numerous occasions, the false information submitted at the direction of Sindzingre and Bescond altered the day’s final U.S. Dollar LIBOR calculation, thus affecting all financial transactions tied to U.S. Dollar LIBOR on that day, the indictment alleges.  Among the affected financial products were Eurodollar futures, a commodity that was traded on the Chicago Mercantile Exchange.  In total, it is estimated that the defendants’ misconduct caused over $170 million in harm to the global financial markets, according to the indictment. 

An indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI is investigating this matter.  Assistant Chief Carol Sipperly and Trial Attorneys Gary A. Winters and Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Amatruda of the United States Attorney’s Office for the Eastern District of New York are prosecuting the case.

The Defendants:

DANIELLE SINDZINGRE
Age:  54
Country: France

MURIEL BESCOND
Age: 49
Country: France

E.D.N.Y. Docket No. 17-CR-464 (JS)

RICHMOND, Va. – A Henrico man who distributed a combined total of more than 20 kilograms heroin and cocaine into the Richmond area in 2016 was sentenced today to 262 months in prison.

Alphonso Jones, 43, pleaded guilty on May 23. According to court documents, Jones, who has multiple previous drug related convictions, admitted that he been involved in the distribution of more than seven kilograms of heroin and 15 kilograms of cocaine. These quantities convert to over 220,000 individual doses. Jones also admitted to possessing a .38 caliber handgun and ammunition as a convicted felon. In addition to his prison sentence, Jones was ordered to forfeit the firearm, and a monetary judgment was entered in the amount of $1.05 million, which represented the proceeds of Jones’ drug trafficking activities.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division,Alfred Durham, Chief of Richmond Police, and Colonel Thierry Dupuis, Chief of Chesterfield County Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-34.

RICHMOND, Va. – A federal jury convicted a former University of Virginia football player today of his role in a $10 million fraud scheme.

According to court records and evidence presented at trial, Merrill Robertson, Jr., 36, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth management, LLC, with co-conspirator Sherman Carl Vaughn. From 2009-2016, Robertson and Vaughn solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and in the National Football League, while Vaughn focused on developing investment opportunities.

“Behind every lie is a choice,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Mr. Robertson lied to his friends and mentors, and many times had the opportunity to come clean and tell the truth. Instead, he chose to continue his lies and fraud, which had devastating effects on his victims. I applaud the terrific efforts of the trial team and our law enforcement partners in investigating and prosecuting this important case.”

Robertson and Vaughn led individuals to believe they were experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.

“There are consequences for people's choices,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office. “Today Mr. Robertson was convicted for his scheme of manipulating friends and associates into trusting him with their savings and ultimately using it for his personal gain. I would like to commend the investigative team and the United States Attorney's Office for their dedication to bring justice to the victims associated with this case.”

As a result of this conspiracy, Robertson and Vaughn fraudulently obtained more than $10 million from over 50 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.

“The longevity and scope of Mr. Robertson’s scheme to defraud investors is simply astonishing,” said Kimberly Lappin, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Through the joint efforts of IRS Criminal Investigation and our law enforcement partners, Mr. Robertson has been brought to justice and convicted by a jury of his peers. Today’s verdict is a reminder that IRS-CI will remain vigilant in our investigation of these schemes in order to combat this type of criminal conduct.”

“This case is merely the latest in a long tradition of Postal Inspectors relentlessly pursuing anyone who misuses the nation's mail system to commit fraud and take advantage of the American public.” said Inspector in Charge Robert Wemyss. “I'm proud of the work done by all the agents involved in this investigation, and look forward to the continued efforts of the Richmond Securities Fraud Task Force.”

Robertson was convicted of mail fraud, bank fraud, and money laundering. He faces a maximum penalty of 330 years in prison when sentenced on December 6. 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, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge John A. Gibney, Jr., accepted the verdict. Assistant U.S. Attorneys Katherine Lee Martin and Stephen E. Anthony are prosecuting the case.

The Virginia State Corporation Commission Division of Securities and Retail Franchising assisted with the investigation.

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. 3:16-cr-133.

ALBUQUERQUE – Mario Moreno, Jr., 35, of El Paso, Tex., was sentenced today in federal court in Las Cruces, N.M., to 36 months in prison for his conviction on a cocaine trafficking charge. Moreno will be on supervised release for three years after completing his prison sentence.

Moreno and his six co-defendants, Jesus Armendariz, 33, of Anthony, N.M., Erubiel Esquivel, 30, of Kansas City, Kan., Abdon Armendariz, 45, of Canutillo, Texas, Rafael Portillo, 27, a Mexican national, and Luis Daniel Villegas, 32, of Las Cruces, N.M., were charged with cocaine trafficking offenses in a three-count indictment filed on July 20, 2016. The indictment charged all six co-defendants with conspiring to distribute cocaine between Oct. 27, 2015 and Nov. 26, 2015. It also charged Jesus Armendariz and Villegas in individual counts with possessing cocaine with intent to distribute. According to the indictment, the defendants committed the crimes in Dona Ana County, N.M.

On Feb. 8, 2017, Moreno pled guilty to Count 1 of the indictment charging him with participating in a cocaine trafficking conspiracy. In entering the guilty plea, Moreno admitted that from Oct. 27, 2015 to Nov. 26, 2015, he conspired with his co-defendants to distribute cocaine in Dona Ana County. Moreno further admitted that on Nov. 10, 2015 he negotiated the sale of one kilogram of cocaine and on Nov. 11, 2015, he sold one kilogram of cocaine for $22,000.

Two of Moreno’s co-defendants have entered guilty pleas: Armendariz-Ruiz pled guilty on June 7, 2017, and Villegas pled guilty on Feb. 17, 2017. Armendariz and Esquivel have entered pleas of not guilty to the indictment and are awaiting trial. Portillo has yet to be arrested and is considered a fugitive. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.

This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorneys Dustin Segovia and Terri Abernathy of the U.S. Attorney’s Las Cruces Branch Office.