Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two members of a violent New Haven street gang were sentenced today in New Haven federal court for committing gang-related murders and other criminal activity.  Chief U.S. District Judge Janet C. Hall sentenced JEFFREY BENTON, also known as “Tall Man,” “Fresh,” and “JT,” 32, to 40 years of imprisonment and ROBERT SHORT, also known as “Santana,” 30, to 30 years of imprisonment.

According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures.  The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.  In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of BENTON and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities.  The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.

On March 17, 2017, BENTON pleaded guilty to one count of engaging in a pattern of racketeering activity, one count of money laundering and one count of conspiracy to distribute 280 grams or more of cocaine base (“crack”).  In pleading guilty, he admitted his involvement in several acts of gang-related violence in New Haven, including the non-fatal shooting of an individual on February 23, 2011; the murder of Kevin Lee on April 20, 2011; the murder of Donnell Allick on June 24, 2011; the murder of Darrick Cooper on September 19, 2011, and the murder of Donald Bolden on March 19, 2012.  He also admitted his participation in the gang-related trafficking of crack cocaine in Connecticut and Maine, and the transferring drug proceeds from Maine to Connecticut by using Western Union.

On March 21, 2017, SHORT pleaded guilty to one count of causing a death through the use of a firearm during and in relation to a crime of violence.  SHORT admitted that he was ordered by BENTON and other RSGB leaders to murder Darrick Cooper, who was a leader of a rival gang and seen as a threat.  On September 19, 2011, SHORT lured Cooper to a location in Hamden and shot Cooper in the back of the head as Cooper walked up a staircase.

As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine.  The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.

“The Red Side Guerilla Brims, under the violent and brutal leadership of Jeffrey Benton, terrorized neighborhoods in New Haven in 2011 and 2012,” said U.S. Attorney Daly.  “Benton and his RSGB cohorts, including Robert Short, were responsible for at least seven murders, multiple attempted murders, armed robberies, and drug and gun running between Connecticut and Maine.  We hope that the lengthy prison terms imposed today bring a measure of solace to the families of the victims and the communities where these violent acts occurred.  I thank our law enforcement partners, notably the ATF, New Haven Police Department and Hamden Police Department, for their tireless dedication to the cause of justice during this investigation, which has made New Haven a safer and more secure place to live.  I also thank our counterparts in the Maine U.S. Attorney’s Office for their coordination in prosecuting a total of 21 individuals in this matter.”

“ATF’s primary mission is to combat violent gun crime committed by criminal organizations or individuals.” said Mickey Leadingham, Special Agent in Charge, ATF Boston Field Division.  “Today’s sentencing is also another example of the importance of law enforcement partnerships and their effectiveness in protecting the citizens in our communities.”

BENTON has been in federal custody since May 17, 2012, and is currently serving a 108-month sentence for distributing heroin.  Chief Judge Hall ordered BENTON to begin serving the 40-year sentence after he completes his previous sentence.

SHORT has been detained since September 20, 2011, when he was arrested on a state offense.  Chief Judge Hall ordered that SHORT not receive federal credit for time served on his state sentence, which concluded in July 2017.

U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.

This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department.  The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.

An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.

This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert Spector, Peter Markle and Jocelyn Kaoutzanis.  A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.

Deirdre M. Daly, United States Attorney for the District of Connecticut,announced that ELLSWORTH ROBERTSON, also known as “S,” 37, of New London, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 36 months of imprisonment, followed by five years of supervised release, for violating the conditions of his supervised release from a 2008 federal conviction.

According to court documents and statements made in court, on May 20, 2008, ROBERTSON was sentenced in Hartford federal court to 70 months of imprisonment, followed by four years of supervised release, for possessing with intent to distribute crack cocaine.  He was released from federal prison in February 2014.

On November 7, 2015, while he was on federal supervised release, ROBERTSON was arrested by the Mohegan Tribal Police Department after he was found in possession of distribution quantities of cocaine and crack cocaine in the wake a stabbing incident at the Mohegan Sun casino.  On that date, ROBERTSON and an associate, who is also a convicted felon, were involved in an altercation with another individual who was stabbed and seriously injured.

In May 2016, a court-authorized search of ROBERTSON’s New London apartment revealed two loaded semi-automatic pistols, more than two kilograms of cocaine, approximately 73 grams of heroin, drug paraphernalia, and thousands of dollars in U.S. currency.

ROBERTSON has been detained since his arrest on May 18, 2016.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New London Police Department and the Connecticut State Police’s Statewide Narcotics Task Force.  The case was prosecuted by Assistant U.S. Attorney John H. Durham.

SYRACUSE, NEW YORK – Cayla Wujek, age 25, formerly of Lewis County, was sentenced yesterday to serve 66 months imprisonment for possessing pseudoephedrine knowing it would be used to manufacture methamphetamine, announced Acting United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division and New York State Police Superintendent George P. Beach II.

As part of her previous guilty plea, Wujeck admitted that between January 2014 and July 2016, she purchased pseudoephedrine pills with an aggregate weight of 94 grams from different drug stores in and around Lewis County. Wujek knew there were restrictions on the sale of pseudoephedrine, and so, to avoid scrutiny, often rotated the stores from which she bought the pills. Wujek purchased the pseudoephedrine knowing it would be used to illegally manufacture methamphetamine, and gave the pills she had purchased to others for that purpose.  In return, Wujek received finished methamphetamine from the methamphetamine “cooks,” or, in some cases, received heroin in exchange for the pills.

Wujek, who has been detained since her arrest on April 21, 2017, entered her guilty plea on May 31, 2017. After completing her 66-month term of imprisonment, Wujek will serve a term of supervised release of at least 3 years. 

This case was investigated by the New York State Police (NYSP), including the NYSP Contaminated Crime Scene Emergency Response Team (CCERT), the Lewis County Sheriff’s Office, and the U.S. Drug Enforcement Agency, and was prosecuted by Assistant U.S. Attorney Carl Eurenius.

ALBANY, NEW YORK – Kenneth R. Carte, Jr., age 27, of Keeseville, New York, was sentenced today to 12 months and 1 day in prison for possessing a firearm as a felon.

The announcement was made by Acting United States Attorney Grant C. Jaquith; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Office; and New York State Police Superintendent George P. Beach II.

As part of his guilty plea on June 1, 2017, Carte admitted that on November 17, 2016, he sold a Remington Model 870 Express shotgun and a box of Remington .410 shotgun shells to another person.  At the time, he was a felon, having been convicted of criminal possession of stolen property.  Investigators also recovered from Carte’s house a loaded Remington Model 742 semi-automatic rifle.

Chief Judge Glenn T. Suddaby also sentenced Carte to 3 years of post-imprisonment supervised release.

This case was investigated by the New York State Police Troop B Gun Unit and the ATF, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.

ALBANY, NEW YORK – Filiberto Moran Vasquez, age 50, and a citizen of Mexico, was sentenced today to time served (23 days in jail) for illegally re-entering the United States. 

The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).

As part of his guilty plea, Moran Vasquez admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on June 6, 2007.  Moran Vasquez had also previously been removed on February 7, 2007.

On September 11, 2017, Moran Vasquez was arrested by ICE officers in Saratoga Springs, New York. 

Following the sentencing, Moran Vasquez was remanded to the custody of the Department of Homeland Security, for removal proceedings.

The case was investigated by ICE-ERO in Albany and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

SYRACUSE, NEW YORK – Steven Doty, 53, of Mattydale, New York, was sentenced yesterday in federal court to serve 15 years in prison to be followed by a 15 year term of supervised release in connection with his previous plea of guilty to two counts of distribution of child pornography, one count of receipt of child pornography and one count of possession of child pornography.As a result of his conviction, Gonyea will be required to register as a sex offender upon his release from prison. 

The announcement was made by the Acting United States Attorney Grant C. Jaquith and Vadim Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

In pleading guilty, Doty admitted to using peer-to-peer software to distribute videos of child pornography on July 6, 2015 and from July 16, 2016 through July 29, 2016.  Doty also admitted to downloading a file directory containing approximately one-thousand (1000) images of child pornography and possessing thirty-two (32) “hard core” videos.

This case was investigated by the Albany Division of the FBI (Syracuse Resident Agency) and the New York State Police, and was prosecuted by Assistant U.S. Attorney Robert Levine.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.

ALBANY, NEW YORK - A jury today convicted Oniel McKenzie, age 37, of Brooklyn, New York, of possession with intent to distribute large quantities of cocaine and marijuana found in Rensselaer County. 

The announcement was made by Acting United States Attorney Grant C. Jaquith and James J. Hunt, Special Agent in Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA).

The jury’s verdict followed a 3-day trial before United States District Judge Mae A. D’Agostino. The evidence at trial showed that on October 4, 2013, McKenzie possessed 60 kilograms of cocaine in an apartment in North Greenbush, and more than 100 kilograms of marijuana in a storage unit he rented in Rensselaer, New York, and in a Jeep he was driving.

McKenzie faces at least 10 years and up to life in prison, at least 5 years and up to lifetime post-imprisonment supervised release, and a fine of up to $10,000,000 when he is sentenced on February 1, 2018 by Judge D’Agostino.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the DEA and its Capital District Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorney Daniel Hanlon.

PITTSBURGH – Individuals and entities associated with Med-Fast Pharmacy, Inc. (“Med-Fast”) have agreed to resolve criminal and civil charges associated with Med-Fast’s improper submission of claims to the Medicare and Medicaid programs, Acting United States Attorney Soo C. Song announced today.

As part of this global resolution, the former Vice President of Store Operations for Med-Fast, defendant Gino Cordisco, 47, of Mars, Pennsylvania, has been charged with one count of conspiracy related to his participation in a scheme to fill prescriptions for nursing homes with recycled unused drugs that were commingled with drug stocks on hand at Med-Fast’s Institutional Pharmacy. Defendant Iserve Technologies, Inc., which is co-located with and operated out of Med-Fast, participated in the same scheme, and was similarly charged with conspiracy. These criminal charges follow the earlier guilty plea on related charges of Correna Pfeiffer, 37, of Monaca, Pennsylvania, who previously served as the manager of the Med-Fast Institutional Pharmacy.

Med-Fast Pharmacy, Inc., its owner Douglas Kaleugher, and related entities also have agreed to pay the United States $2,666,300.00 to settle civil False Claims Act allegations. The civil settlement resolves allegations in two separate whistleblower lawsuits filed in federal court in Pittsburgh, Pennsylvania. The settled claims contended that Med-Fast violated the False Claims Act by distributing and submitting claims to Medicare for medication that it had either recycled from long-term care facilities serviced by its institutional pharmacy, or that otherwise differed from the medications identified as part of the claims submitted to the United States. The settlement also resolves allegations that Med-Fast violated the False Claims Act by submitting claims to Medicare and Pennsylvania Medicaid that sought reimbursement for the retail-packaged version of diabetes testing strips, while actually supplying patients with cheaper mail-order-packaged version of the same strips.

“These criminal and civil agreements demonstrate our commitment to safeguarding the integrity of federal health care programs and the safety and well-being of the public,” said Acting U.S. Attorney Song. “Pharmacists and pharmacies must deal fairly and honestly with federal health care programs, and this U.S. Attorney’s Office will hold accountable those who do not.”

These matters were investigated by The U.S. Food and Drug Administration-OCI, the Drug Enforcement Administration-Diversion Investigators, the Office of Inspector General of the Department of Health and Human Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Nelson P. Cohen prosecuted the criminal cases on behalf of the government and Assistant U.S. Attorney Colin J. Callahan litigated the civil cases on behalf of the Affirmative Civil Enforcement Section of the United States Attorney’s Office.

The civil cases resolved by this settlement are captioned United States ex rel. Darla Reid v. Med-Fast Pharmacy, Inc., Civil Action No. 13-715 (WDPA); and United States ex rel. Bryan Bisceglia v. Med-Fast Pharmacy, Inc. et al., Civil Action No. 13-0368 (WDPA). The claims resolved by the civil settlement are allegations only, and there has been no determination of liability. The conspiracy charge against Cordisco carries a maximum total sentence of 5 years in prison, a fine of $250,000 or both. The conspiracy charge against Iserve Technologies, Inc. carries a maximum total sentence of 5 years probation, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

LONDON, Ky. – On Monday, a federal indictment was unsealed, charging two Laurel County men and a Pulaski County couple with drug, kidnapping, and firearms offenses.

On September 28, 2017, a federal Grand Jury, sitting in London, charged that Robert “Bobby” Hurley, III, of East Bernstadt, Ky.; Ronald Brandon “Hubcap” Hubbard, of London, Ky.; Roger Creech, of Somerset, Ky.; and Tracy Amanda Hamblin, also known as Tracy Creech, of Somerset, Ky., aided and abetted each other in the kidnapping of an unidentified victim, in May of this year.  The indictment alleges that the group kidnapped the victim, for the purpose of assaulting them, and utilized a facility or instrumentality of interstate commerce to commit the crime.  The indictment further charges the group with brandishing, using, and carrying a firearm, during commission of the crime.

The indictment has also charged each of the four with conspiracy to distribute methamphetamine, along with a fifth subject, Brian McDonald, who was not charged as part of the kidnapping.  Additionally, Roger Creech, Brian McDonald, and Robert Hurley, III, were each charged with illegally possessing firearms.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Richard Sanders, Commissioner of the Kentucky State Police (KSP); and Greg Speck, Pulaski County Sheriff, jointly announce the indictment.  The case was investigated by the ATF, KSP, and Pulaski County Sheriff’s Office.

Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

A Lake Worth resident pled guilty yesterday before U.S. Magistrate Judge William Matthewman to production and transmission of child pornography.

Benjamin Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey Katz, Chief, Boynton Beach Police Department (BBPD), made the announcement.

Kevin Scott Mitchell, a/k/a “kev_bear1@yahoo.com,” 62, of Lake Worth, pled guilty yesterday to the Indictment, which charged him with one count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and (e), and one count of transmission of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2) and (b)(1).  During the plea hearing, the facts relayed were that Mitchell had sex with the 16-year-old victim since January 2016 at a hotel in Boynton Beach, Florida.  He took photographs and videos during the sexual encounters, when his trucking route brought him to South Florida. 

In May 2017, the victim, then 17, reported the sexual abuse to law enforcement when Mitchell emailed a threat to release the photos to the victim’s friends and family.  When Mitchell later texted to the victim, undercover detectives from the Boynton Beach Police Department responded as the victim.  Mitchell proceeded to send child pornography of the victim to the detective.  He was apprehended several days later in upstate New York.  Found in his possession were digital devices that contained child pornography of the victim.

Mr. Greenburg commended the investigative efforts of ICE-HSI and BBPD.  The case is being prosecuted by Assistant U.S. Attorney Greg Schiller.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that seven previously deported aliens were indicted separately on October 4, 2017, by a federal grand jury with illegal re-entry into the United States by a previously deported alien. 

According to United States Attorney Bruce D. Brandler, Jose Alvarez-Lemus, age 37, of Honduras, was previously deported from the United States to Honduras in June 2008.  He is alleged to have illegally re-entered the United States sometime after June 2008, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.

Placido Hernandez-Hernandez, age 47, of Mexico, was previously deported from the United States to Mexico in September 1997.  He is alleged to have illegally re-entered the United States sometime after September 1997, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Sulpicio Bello-Guerrero, age 64, of Mexico, was previously deported from the United States to Mexico in December 2008.  He is alleged to have illegally re-entered the United States sometime after December 2008, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Calixto Roblero-Ortiz, age 34, of Mexico, was previously deported from the United States to Mexico in April 2009 and May 2010.  He is alleged to have illegally re-entered the United States sometime after May 2010, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.

Sigifredo Sandoval-Arteaga, age 43, of Mexico, was previously deported from the United States to Mexico in August 2013.  He is alleged to have illegally re-entered the United States sometime after August 2013, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Wilmar Renoj-Chan, age 40, of Guatemala, was previously deported from the United States to Guatemala in April 2011.  He is alleged to have illegally re-entered the United States sometime after April 2011, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.

Under federal law, Alvarez-Lemus, Hernandez-Hernandez, Bello-Guerrero, Roblero-Ortiz, Sandoval-Arteaga, and Renoj-Chan face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.  

Luis Saldana-Figueroa, age 33, of Mexico, was previously deported from the United States to Mexico on three occasions, March 2011, September 2013, and January 2014.  He is alleged to have illegally re-entered the United States sometime after January 2014, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers. In January 2013, he was convicted in the Middle District of Pennsylvania of illegal reentry by a previously deported alien, an offense which subjects him to enhanced penalties in the current case.

Because of Saldana-Figueroa’s previous conviction, under federal law he faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.

These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO).  Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.

Indictments and Criminal Informations 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.

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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ALEXANDRIA, La. –Acting U.S.Attorney Alexander C. Van Hook announced today that 11 defendants were indicted for a methamphetamine distribution conspiracy in the Winn Parish area.

Those named in the 13-count indictment are:

Cristina Daniela Santos, 25, of Inglewood, Calif.

Ladarrius James Street, 34, of Winnfield, La.

Dexter Jerome Sapp, 38, of Winnfield, La

Destiney Hamilton, 32, of Winnfield, La.

Kendrick Lamont Davenport, 43 of Winnfield, La.

Stephen Duncan Jr., 25, of Winnfield, La.

Delano C. Hall, 48, of Winnfield, La.

Michael Deangelo Hall, 32, of Winnfield, La.

Jeremy Laraun Mamon, 35, of Winnfield, La.

Rafael M. Powell, 34, of Atlanta, La.

Xavier Deandre Powell, 28, of Atlanta, La.

According to the indictment, the defendants conspired to distribute more than 50 grams of methamphetamine from October 2015 to October 2017 in the Winn Parish area.

For a list of counts the defendants face, see graphic below:

*Count One is conspiracy to possess with intent to distribute methamphetamine. Counts 2-5 and 7-13 are distribution of methamphetamine, and Count Six is possession with intent to distribute methamphetamine.

The defendants each face between 10 years to life in prison, a $10 million fine, and forfeiture of seized property.  They also face at least four years of supervised release. 

The FBI Central Louisiana Safe Streets Gang Task Force, U.S. Marshals Service Violent Offender Task Force of Alexandria and Shreveport, DEA Task Force of Shreveport, Louisiana State Police, Louisiana National Guard Counter Drug Unit, Louisiana Probation and Parole, Winn Parish Sheriff’s Department, Winn Parish District Attorney’s Office, and the Hawthorne, Calif., Police Department participated in the investigation. Assistant U. S. Attorney Earl M. Campbell is prosecuting the case.

An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

PITTSBURGH - A resident of Indiana, Pennsylvania, pleaded guilty in federal court to a charge of embezzling from a federally insured bank, Acting United States Attorney Soo C. Song announced today.

Madeline Isenberg, 37, of Indiana, Pennsylvania, pleaded guilty on Tuesday to one count before United States District Judge David S. Cercone.

In connection with the guilty plea, the court was advised that from in or around February 2012 until in or around August 2015, Isenberg, while employed as an Assistant Manager for First Commonwealth Bank, embezzled approximately $88,000.

Judge Cercone scheduled sentencing for Thursday, February 22, 2018. The law provides for a total sentence of thirty years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Madeline Isenberg.

CINCINNATI – Omar Israel-Griffin, 27, of Cincinnati, also known as Deuce, was sentenced in U.S. District Court to 235 months in prison for dealing fentanyl and heroin that resulted in at least one death.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and members of the Hamilton County Heroin Drug Task Force announced the sentence handed down yesterday by U.S. District Judge Michael R. Barrett.

According to the Statement of Facts in this case, law enforcement agents began the investigation into a drug overdose death on November 19, 2015, after a man was found dead in his Anderson Township home.

The investigation revealed that Israel-Griffin had been the supplier of a fentanyl and heroin mix and an autopsy confirmed that the drugs sold by Israel-Griffin caused the death.

Israel-Griffin pleaded guilty in April 2017 to one count of distribution of a controlled substance. The defendant then moved to withdraw the plea, which was summarily denied by Judge Barrett. Israel-Griffin was also sentenced to eight years of supervised release.

“Dealers must recognize that they perpetuate tragedy when they distribute narcotics like fentanyl and heroin,” U.S. Attorney Glassman said. “They are playing a direct role in the deaths of others.”

U.S. Attorney Glassman commended the cooperative investigation by the DEA and Hamilton County Heroin Drug Task Force, as well as Assistant United States Attorney Timothy D. Oakley, who is representing the United States in this case. 

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BOSTON – The president and founder of a Falmouth mortgage company pleaded guilty yesterday in federal court in Boston in connection with defrauding the Government National Mortgage Association (Ginnie Mae) out of approximately $2.5 million.

Robert Pena, 68, of Falmouth, pleaded guilty to one count of conspiracy and six counts of wire fraud.  U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Jan. 5, 2018.

Pena was president and founder of the now-defunct mortgage company, Mortgage Security Inc. (MSI), which contracted with Ginnie Mae, a government-run corporation charged with making housing more affordable by injecting capital into the U.S. housing market. Ginnie Mae guarantees the timely payment of principal and interest to investors in bonds backed by government-sponsored mortgage loans, such as those offered by the Federal Housing Administration and the U.S. Department of Veterans Affairs. 

MSI contracted with Ginnie Mae to pool eligible residential mortgage loans and then sell Ginnie Mae-backed mortgage bonds to investors.  MSI was responsible for servicing the loans in the pools it created, including collecting principal and interest payments from borrowers, as well as loan payoffs, and placing those funds into accounts held in trust by Ginnie Mae, which would ultimately pass them along to investors.  Among other things, Ginnie Mae required issuers like MSI to provide regular reports concerning the status of the loans in the pools.

Beginning in 2011, Pena began diverting money that borrowers were sending to MSI.  Specifically, Pena deposited high-dollar, loan-payoff checks into bank accounts unknown to Ginnie Mae and then used those funds for personal and business expenses.  Pena also diverted borrowers’ escrow funds and mortgage-insurance premiums for his own use.  In total, Pena took approximately $2.5 million, which Ginnie Mae then had to pay to the investors whose investments it had guaranteed.  Pena also attempted to cover up his scheme by providing false reports to Ginnie Mae about the status of the loans MSI was servicing. 

The charging statues provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement.  Valuable assistance was provided by the U.S. Department of Veterans Affairs, Office of Inspector General; the U.S. Department of Agriculture, Office of Inspector General; and the Falmouth Police Department.  Assistant U.S. Attorney Brian LaMacchia of Weinreb’s Civil Division is prosecuting the case.

The Department of Justice has awarded more than $18 million in grants to Oklahoma tribal governments to enhance public health and safety, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma; R. Trent Shores, U.S. Attorney for the Northern District of Oklahoma; and Brian J. Kuester, U.S. Attorney for the Eastern District of Oklahoma.

These grants are part of more than $100 million in grants to 125 American Indian tribes, Alaska Native villages, tribal consortia, and tribal designees, announced today by Associate Attorney General Rachel Brand.  Many of these awards were made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.

CTAS grants are designed to enhance law enforcement practices, expand victim services, and sustain crime prevention and intervention efforts.  Awards cover nine areas: public safety and community policing, justice systems planning, alcohol and substance abuse, corrections and correctional alternatives, children’s justice act partnerships, services for victims of crime, violence against women, juvenile justice, and tribal youth programs.

“Reducing violent gang and gun crimes in Indian Country is crucial to protecting citizens who live in and around tribal communities.  The justice community must also look to help those with mental health and substance abuse issues to re-enter society as productive citizens.  These Federal grant allocations will help to further those goals,” said U.S. Attorney Shores of the Northern District of Oklahoma.  U.S. Attorney Kuester of the Eastern District of Oklahoma said, “I am pleased and excited about DOJ’s awards to the tribal governments in Oklahoma.  These grants will fund programs that will assist victims of crimes, reduce crime against women, and enhance the resources available for tribal governments to combat violent crime, increase public awareness, and provide prevention programs for youth.  The U.S. Attorney’s Office looks forward to assisting in any way possible as these programs are implemented.”  U.S. Attorney Yancey of the Western District of Oklahoma said, “I join my fellow United States Attorneys in welcoming the federal law enforcement assistance to our Oklahoma tribes.  I look forward to working with all tribes in the Western District to reduce crime and aid victims.”

The Oklahoma CTAS recipients are:

Cherokee Nation (total: $3,087,900)

Public Safety and Community Policing: $565,241
Comprehensive Tribal Justice Systems Strategic Planning: $74,995
Justice Systems and Alcohol and Substance Abuse: $749,993
Violence Against Women Tribal Governments Program: $898,100
Comprehensive Tribal Victim Assistance Program: $449,925
Tribal Youth Program: $349,646

Choctaw Nation of Oklahoma (total: $1,994,588)                  

Violence Against Women Tribal Governments Program: $897,851
Comprehensive Tribal Victim Assistance Program: $449,999
Juvenile Healing to Wellness Courts: $350,000
Tribal Youth Program: $296,738

Citizen Potawatomi Nation (total: $1,098,106)

Justice Systems and Alcohol and Substance Abuse: $749,593
Tribal Youth Program: $348,513

Comanche Nation (total: $749,348)

Justice Systems and Alcohol and Substance Abuse: $749,348

Delaware Tribe of Indians (total: $424,845)

Violence Against Women Tribal Governments Program: $424,845

Muscogee Creek Nation (total: $803,912)

Violence Against Women Tribal Governments Program: $803,912

Pawnee Nation (total: $700,000)

Violence Against Women Tribal Governments Program: $700,000

Ponca Tribe of Oklahoma (total: $1,800,000)    

Corrections and Correctional Alternatives: $1,000,000
Comprehensive Tribal Victim Assistance Program: $450,000
Tribal Youth Program: $350,000

Quapaw Tribe of Oklahoma (total: $4,590,422)

Public Safety and Community Policing: $232,929
Justice Systems and Alcohol and Substance Abuse: $446,714
Corrections and Correctional Alternatives: $3,910,779

Seminole Nation of Oklahoma (total: $900,000)

Violence Against Women Tribal Governments Program: $900,000

Seneca Cayuga Nation (total: $825,000)

Violence Against Women Tribal Governments Program: $825,000

Wyandotte Nation (total: $200,189)

Public Safety and Community Policing: $200,189

In addition to CTAS grants, the Department awarded $889,975 to four Oklahoma tribes under the Adam Walsh Act Implementation grant program, part of the Office of Justice Program’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking.  These grant awards enable states, the District of Columbia, territories, and tribal jurisdictions to develop and enhance programs that implement the requirements of the federal Sex Offender Registration and Notification Act.  Funding supports staff, information-sharing technology, infrastructure development, law enforcement training, and stakeholder collaboration.

The Oklahoma recipients of Adam Walsh Act Implementation grants are:

Caddo Nation: $200,000
Cheyenne and Arapaho Tribes: $400,000
Seneca Cayuga Nation: $198,181
United Keetoowah Band of Cherokee Indians: $91,794

Finally, through the Office of Justice Programs, the University of Oklahoma Health Sciences Center will receive $1.5 million under the Office of Juvenile Justice and Delinquency Prevention’s Fiscal Year 2017 Tribal Youth Program Training and Technical Assistance grant.  This program provides culturally-sensitive, trauma-informed and developmentally-appropriate training, support, resources, information, and related technical assistance to help tribes meet the needs of their youth.

The Department of Justice’s national press releases on these and related grants are available at https://www.justice.gov/opa/pr/justice-department-awards-more-130-million-improve-public-safety-address-violence-against.

       Montgomery, Ala. –    State Representative Micky Ray Hammon, 60 years old, of Decatur, Alabama, pleaded guilty on Monday, September 25, 2017 to devising a scheme to commit mail fraud, announced United States Attorney Louis V. Franklin, Sr.  Hammon has represented the Fourth District in the Alabama House of Representatives since 2003.  Until earlier this year, Hammon served as the House of Representative’s majority leader.

       According to court documents, Hammon, through his mail fraud scheme, used campaign money to pay his own personal expenses.  Specifically, in 2013, Hammon created a principal campaign committee through the Secretary of States Office.  This principal campaign committee allowed Hammon to begin raising money for his reelection campaign.  Alabama law strictly limits the ways that Hammon’s campaign could use that money.  Generally speaking, the campaign could use donations only to support Hammon’s reelection or legislative work.  He was not supposed to use the money for his own personal expenses.  After registering with the Secretary of State, Hammon’s campaign raised money from various donors.  Some of these donors mailed their donations to Hammon’s campaign office.   

       Upon receiving a campaign donation check, Hammon would endorse the check and deposit it into his campaign’s bank account.  Hammon would then write a check drawn on the campaign account to himself.  After doing so, Hammon would deposit that check into his own personal bank account and use the money to pay for his own personal expenses. 

       In the coming months, United States District Myron H. Thompson will sentence Hammon.  At sentencing, Hammon faces a maximum sentence of 20 years in prison, as well as monetary penalties. 

       “Self-dealing by elected officials erodes society’s confidence in its governmental institutions,” stated Untied States Attorney Louis V. Franklin, Sr.  “Self-dealing is precisely what occurred here.  Those who donated to Representative Hammon’s campaign expected that the campaign would use those resources lawfully and to foster an informative public debate.  Instead, Representative Hammon placed those funds into his own personal piggy bank.  I am proud of my office’s efforts to root out this corruption and I am most grateful for the tireless work of the United States Postal Inspection Service, which investigated this case.  I hope that this prosecution will, in some small way, restore Alabamians’ trust in their state legislature.” 

       This case was investigated by the United States Postal Inspection Service.  Assistant United States Attorney Jonathan S. Ross is prosecuting the case.

NEW BERN– The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announced that today in federal court, United States District Judge Louise W. Flanagan sentenced CALVIN TERRANCE DAVIS, 46, of Spring Lake, N.C., to 13 months of imprisonment followed by 5 years of supervised release.

DAVIS was named in a one-count Criminal Information on May 18, 2017.  On June 15, 2017, he pled guilty to one count of Criminal Sexual Abuse of a Ward.

On May 19, 2016, a Bureau of Prison (BOP) inmate, housed at the Federal Correctional Institution in Butner, North Carolina (FCI Butner), informed staff that she had been sexually assaulted by Correctional Officer CALVIN TERRANCE DAVIS on May 18, 2016. According to the victim, DAVIS forced the victim to perform oral sex on him.

Investigators collected clothing that belonged to the victim and sent it to the Federal Bureau of Investigation (FBI) lab for processing. A lab test confirmed that semen was present on the clothing, and a subsequent DNA test resulted in a positive match for DAVIS’s DNA.

The criminal investigation of this case was conducted by the U.S. Department of Justice, Office of the Inspector General.  Assistant U.S. Attorney Scott A. Lemmon prosecuted the case for the government.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that MICHAEL SCRONIC, a hedge fund manager in Westchester County, was arrested this morning and charged with securities fraud and wire fraud arising out of his execution of a $19 million Ponzi scheme through the Scronic Macro Fund.  SCRONIC will be presented before United States Magistrate Judge Lisa Margaret Smith in White Plains federal court later today.

Acting U.S. Attorney Joon H. Kim said: “Michael Scronic allegedly stole more than $19 million from investors by lying about the performance of his investment fund, and then spent much of that money on his own lavish lifestyle.  Hedge fund managers who lie to their investors and steal their money, as Scronic is alleged to have done, will always be in our sights as targets for federal prosecution.”

FBI Assistant Director William F. Sweeney Jr. said:  “Scronic’s alleged get-rich-quick scheme was, in fact, a plan to deceive investors, luring them into a false sense of security about their investments by overselling the reliability and success of the fund. The FBI will continue to identify and investigate those who defraud investors. We ask anyone who has information related to investor fraud submit a tip at https://tips.fbi.gov/.”

According to the allegations contained in the Complaint[1] unsealed today in White Plains federal court:

SCRONIC, a graduate of Stanford University and the University of Chicago’s business school, raised more than $19 million from 45 investors in the Scronic Macro Fund (the “Fund”) from April 2010 to the present.  SCRONIC told investors that the Fund had positive returns in all but one of the 22 quarters from January 2012 through June 2017, with the highest reported quarterly return being 13.4 percent in the fourth quarter of 2014.  In reality, the Fund lost money in 28 out of 29 quarters of its operation, with a total net loss of about $15.7 million before commissions.  The Fund’s only positive quarter was its first quarter of operation in 2010.

As a result of these trading losses, the total assets SCRONIC claimed the Fund had in each quarter far exceeded its actual assets.  For example, SCRONIC sent account statements to investors that together showed total fund assets of $21.7 million as of June 30, 2017.  On that date, the combined balance of SCRONIC’s brokerage and bank accounts was $102,376.

In addition to losing money on trades, SCRONIC used investor money for personal expenses.  His personal expenditures averaged more than $500,000 a year since January 2012 and included monthly rent of $12,275 on his primary residence in Westchester, mortgage payments on a vacation home in Stratton, Vermont, fees for multiple beach and country clubs, including a $30,000 payment to the Stratton Mountain Club in July 2017, and miscellaneous items charged to credit cards in amounts averaging more than $15,000 a month.

In recent months, SCRONIC has been unable to pay redemptions requested by existing Fund investors.  Between June and August of this year, four Fund investors requested redemptions totaling about $1.5 million.  SCRONIC has not had sufficient funds on hand to pay these redemptions.  He instead has told these investors that the Fund would pay redemptions only at quarter end, that he was too busy and preoccupied with a relative’s medical condition to pay redemptions, and that he was unavailable to pay redemptions because he was on vacation.  In some cases, SCRONIC ignored redemption requests.

*                *                *

SCRONIC, 46, of Westchester County, New York, is charged with one count of securities fraud and one count of wire fraud.  Each charge carries a maximum sentence of 20 years in prison. 

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

Mr. Kim praised the investigative work of the FBI.  Mr. Kim also thanked the Securities & Exchange Commission for its assistance in the investigation.

In a related case, the Securities & Exchange Commission brought a civil action today against SCRONIC in U.S. District Court in White Plains.

The criminal case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorney James McMahon and Special Assistant U.S. Attorney Daniel Loss are in charge of the prosecution.

FOR IMMEDIATE RELEASE                                                                  Contact ELIZABETH MORSE
www.justice.gov/usao/md                                                                            at (410) 209-4885

Greenbelt, Maryland – Jayron Khalil Foster, age 21, of Riverdale, Maryland, was charged by federal criminal complaint on April 26, 2017 with production of child pornography. The complaint was unsealed today.

The complaint was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.

According to the affidavit filed in support of the complaint, between at least August 2016 through January 2017, Foster allegedly engaged in sexually explicit conduct with a 7-year-old female, in order to produce visual depictions documenting the abuse. In April 2017, Maryland State Police (MSP) began investigating ten Cyber tips that were sent to the MSP Internet Crimes Against Children (ICAC) task force from the National Center for Missing and Exploited Children in reference to possible child pornography. On April 25, 2017, investigators executed a search warrant at Foster’s residence and seized a hard drive, which contained numerous images and videos depicting Foster engaged in sexually explicit conduct with the minor victim.

If convicted, Foster faces a mandatory minimum of 15 years in prison and up to 30 years in prison for each count of production of child pornography. Foster is currently detained in Prince George’s County on related state charges.

A complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. 

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

Acting United States Attorney Stephen M. Schenning commended HSI, Maryland State Police, Prince George’s County Police Department, and Prince George’s County Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Kelly O’Connell Hayes, who is prosecuting the federal case.