McALLEN, Texas – A 25-year-old Mission man has received a 10-year prison sentence for transporting cocaine, announced Acting U.S. Attorney Abe Martinez. Mario Alberto Garrido pleaded guilty to possessing with the intent to distribute 23 kilograms of cocaine on Nov. 8, 2016.  

Today, U.S. District Judge Ricardo H. Hinojosa sentenced Garrido to 120 months in prison to be immediately followed by five years of supervised release.  

On June 2, 2016, authorities stopped Garrido for a traffic violation in Mission. A canine alerted to the presence of narcotics in the vehicle, at which time law enforcement discovered approximately 23 kilograms of cocaine in a hidden compartment in the trunk of the car he was driving.

Garrido admitted he had been involved in transporting and distributing cocaine since he was 12 years old. 

Garrido has been and will remain in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. 

The FBI and Hidalgo County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.

RALEIGH– United States Attorney Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge James C. Dever III sentenced TACARLOS ANTIGO MILLER, 39, of Wilmington, NC to 132 months imprisonment, followed by 3 years of supervised release.

MILLER was found guilty after trial by jury in June 2016, of conspiracy to distribute and possess with the intent to distribute heroin and two (2) counts of distribution of heroin. 

During the investigation, law enforcement used confidential informants (CIs) to make controlled purchases from MILLER.  Based on these controlled purchases and information regarding heroin trafficking by MILLER from 2013, until his arrest in May 2015, the defendant is accountable for at least 100 grams of heroin.  He also possessed a firearm in connection with his drug trafficking activities.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wilmington Police Department, and the New Hanover County Sheriff’s Office.  Assistant United States Attorney Lawrence J. Cameron represented 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 the arrest and unsealing of a complaint charging LISA BERSHAN, BARRY SCHWARTZ, and JOEL MARGULIES with securities fraud, wire fraud, and conspiracy to commit those offenses in connection with a scheme to defraud investors in a company variously called The Awake Company and Starship Snacks (“Starship”). 

BERSHAN and SCHWARTZ were presented earlier today in federal court in Atlanta, and MARGULIES was presented earlier today in federal court in Tennessee. 

In a separate action, the SEC filed civil charges against BERSHAN, SCHWARTZ, and MARGULIES.  

Acting U.S. Attorney Joon H. Kim said:  “As alleged, while promising a sure thing, in the form of guaranteed returns, the defendants were actually selling nothing but lies.  Instead of using investors’ money to grow the business, they allegedly spent it on plastic surgeries, jewelry, and cars.  Thanks to the terrific investigative work of the FBI, the defendants will now have to answer in court for their lies.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “Bershan, Schwartz, and Margulies allegedly led investors to believe their company was on a guaranteed path to success. To further support their claim, as charged today, they promised to buy back any shares that didn’t appreciate within a year, including a supplemental interest payment of five percent. Samples of chocolate intended to represent the caffeinated snack they had supposedly developed were provided to some for good measure, but the chocolate was void of its key ingredient. In the end the numbers didn’t add up as this sweet deal turned sour.”

According to the allegations in the Complaint unsealed in Manhattan federal court:[1]

As alleged, BERSHAN, SCHWARTZ, and MARGULIES created Starship with the stated goal of marketing and selling a caffeinated chocolate snack.  BERSHAN, SCHWARTZ, and MARGULIES subsequently raised over $2 million from investors by telling them that their investments in Starship would be personally guaranteed against any losses; that Starship was on the verge of a lucrative acquisition by another entity, Monster Beverage Corp. (“Monster”); and that Starship’s signature product had been developed successfully.  All of these representations were false and misleading.  Starship had no ability to honor the guarantees that it and BERSHAN made to investors.  It was never in talks with Monster to be acquired.  And it had never developed or engaged a third party to develop its caffeinated snack.  After receiving investor monies, moreover, BERSHAN, SCHWARTZ, and MARGULIES used those funds to maintain their own extravagant lifestyles, spending hundreds of thousands of dollars on things like luxury clothing, plastic surgery, interior decorating, and luxury housing in New York City. 

Beginning in August 2015, BERSHAN, MARGULIES, and SCHWARTZ began soliciting investments in Starship.  In order to assure investors that their investments in Starship would be safe, BERSHAN sent investors images of herself in what appeared to be a mansion with subject lines like, “Just a glimpse – my parents sure as hell didn’t leave me this.”  BERSHAN and MARGULIES also signed investment documents providing that “[t]he Company and Lisa Bershan, its founder, have committed to repurchase” investors’ shares at the price that they had paid for them if they had not appreciated within a year, and further guaranteeing that “Lisa Bershan . . . [would] add an interest payment of 5%” in such an event.  These guarantees were not made in good faith, as neither BERSHAN nor Starship had any significant assets or ability to honor the guarantees they were making.  To the contrary, BERSHAN had unpaid tax liabilities and multiple outstanding civil judgments (and did not actually own the mansion that, as discussed above, she implicitly held out to investors as her own).

In addition to making bogus guarantees, BERSHAN, SCHWARTZ, and MARGULIES also told investors that Starship was in discussions to be acquired by Monster, and that this transaction would take place through a one-to-one exchange of Starship stock for Monster stock.  In October 2015, for example, MARGULIES sent an email to multiple investors that sought additional investments and expressly stated, “[t]he deal as I am certain you have heard is done thanks in no small part to the extraordinary talents and skills of our CEO, Lisa Bershan.  If you are not aware of the deal, it is a one to one --- share for share exchange of [Starship] for Monster after a six month holding period of [Starship] shares.”  Given that Monster’s stock was, at the time, trading at many multiples of the $3 per share that Starship’s investors initially paid at the time, this purported transaction would result in tremendous gains for Starship investors.  But there was no basis for the claim that the “deal . . . [was] done.”  Starship was never acquired by Monster or any other entity, and, indeed, was never in negotiations with Monster. 

Finally, BERSHAN, SCWHARTZ, and MARGULIES misrepresented the nature and progress of Starship’s purported business to investors.  BERSHAN, SCHWARTZ, and MARGULIES told investors that Starship had developed its caffeinated chocolate snack, when, in reality, it had not done so.  Indeed, in order to mislead investors into thinking that the product was further along than it actually was, BERSHAN, SCHWARTZ, and MARGULIES actually provided samples of normal chocolates to certain investors, falsely telling them that the chocolates were caffeinated as per Starship’s business plan. 

In total, BERSHAN, SCHWARTZ, and MARGULIES raised over approximately $2 million from investors based on these false representations.  Much of this amount was simply misappropriated by BERSHAN and SCHWARTZ (or paid to MARGULIES).  Between August 2015 and July 2017, for example, BERSHAN and SCHWARTZ spent over $39,000 on plastic surgery; over $209,000 on retail purchases, including jewelry, clothes, and interior decorating; over $11,900 at a Mercedes dealership; and hundreds of thousands of dollars on luxury housing. 

*                      *                      *

MARGULIES, 72, of Murfreesboro, Tennessee, BERSHAN, 65, and SCHWARTZ, 71, are each charged with one count of conspiring to commit securities and wire fraud, which carries a maximum prison sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.  The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.           

Mr. Kim praised the exceptional work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant United States Attorney Robert Allen is in charge of the prosecution.  

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

United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman, has been indicted by a federal grand jury for violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act.

Wanda Dupris, age 44, was indicted on August 22, 2017.  She appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to two years in custody and/or a $250,000 fine, one year of supervised release, and up to $125 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on June 30, 2015, Dupris did knowingly, and with wanton disregard for the consequences of her actions, possess, sell, barter, and offer to sell and barter a bald eagle and a golden eagle and parts thereof, and other migratory birds and parts thereof.

The charges are merely accusations and Dupris is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the U.S. Fish & Wildlife Service.  Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.   

Dupris was released on bond pending trial.  A trial date has not been set.

RUSSELLVILLE—Cody Hiland, United States Attorney for the Eastern District of Arkansas, Anthony Lemons, Acting Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), William McCrary, Assistant Special Agent in Charge, New Orleans Field Division, Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), and David Gibbons, Prosecuting Attorney for the Fifth Judicial District of Arkansas, announced today the unsealing of a federal indictment charging 44 defendants in a major operation aimed at disrupting drug and gun crime in Pope and Yell Counties. The indictment was returned by a federal grand jury on October 3, 2017, and was unsealed today following a coordinated roundup of the charged defendants.

In total, including defendants charged in state courts, law enforcement obtained arrest warrants for 70 defendants associated with the case, and arrested 27 individuals early Wednesday morning. Eighteen federal and two state defendants were already in custody. Twenty-three defendants, including 11 federal fugitives and 12 state fugitives, remain at large.

During Wednesday morning’s arrest operation law enforcement also seized 46 guns, bringing the total number of firearms seized in the investigation to 69.

“Targeting violent, armed drug dealers will be a priority for my office, as well as for all law enforcement agencies in central Arkansas,” Hiland said. “Law enforcement at all levels is committed to working together to help rid these communities of drugs and those who are responsible for their distribution. Today’s operation is a perfect example of that coordination. Our collective goal is to return these communities to their law-abiding citizens, and taking these criminals off the streets has made Pope and Yell Counties safer places to live and work. Today’s arrests are a victory against these dangerous criminals, but know that our commitment to finding and stopping gun and drug crime all across the Eastern District of Arkansas will continue long after today.”

During the nearly two-year coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as the 69 firearms and more than $70,000 in drug proceeds.

Among the 44 federal defendants are nine people who are avowed white supremacists, including eight members of the New Aryan Empire (NAE) and one member of the White Aryan Resistance (WAR). The NAE slogan is “To The Dirt,” which is in reference to the rule that members must remain in the NAE until they die. These groups are Arkansas white supremacist organizations, which began as prison gangs.

This Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, named “To The Dirt,” began in early 2016, when local law enforcement officials started investigating various crimes being committed by the NAE, including the distribution of methamphetamine. It soon became apparent that the methamphetamine trafficking in this area went far beyond only NAE members, and the Fifth Judicial District Drug Task Force enlisted the help of the DEA and ATF.

“The DEA is committed to working with our federal, state and local law enforcement partners to target all levels of drug trafficking organizations that are responsible for drug trafficking and related violence in our communities,” said Stephen G. Azzam, Special Agent in Charge of the DEA’s New Orleans Field Division, which includes the Eastern District of Arkansas. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs, including the New Aryan Empire. Today’s arrests should significantly impact the violent drug related activity that has wreaked havoc throughout the Eastern District of Arkansas.”

From January 2016 through October 2017 multiple agencies at the local, state, and federal level coordinated dozens of controlled purchases of methamphetamine from individuals associated with the NAE, as well as others distributing drugs in Russellville. While more than 25 pounds of methamphetamine were actually seized in Arkansas, the investigation revealed that hundreds of pounds of methamphetamine had been trafficked from California for distribution in central Arkansas in the course of this conspiracy. Arrest warrants have been issued for two of the main methamphetamine suppliers in California, who lived in Sacramento and Los Angeles and remain fugitives at this time.

Early Wednesday morning 200 law enforcement officers, including more than 150 tactical officers, helped execute the arrest warrants for those defendants in Arkansas in a targeted takedown that resulted in arrests on multiple charges, including conspiracy to possess with intent to distribute and to distribute meth, distribution of methamphetamine, use of a firearm in relation to a drug trafficking crime, and felon in possession of a firearm. Most of the defendants are residents of Pope County (see attachment for complete list of defendants and charges).

A majority of the 44 federal defendants are convicted felons, many with violent histories. Among the 69 guns seized include handguns, rifles, shotguns, and several high-capacity assault-style rifles.

“This almost two-year collaborative effort between ATF, DEA, U.S. Postal Inspectors, Pope County Sheriff’s Office, Arkansas State Police, Arkansas Highway Police, Russellville Police Department, 5th Judicial Drug Task Force, and other state and local law enforcement partners is a shining example of ATF’s commitment to reducing violence in our communities,” ATF Asst. Special Agent in Charge McCrary. “The armed drug trafficking conspiracy dismantled today was a plague on Russellville and the surrounding communities, and the prosecution and incarceration of its leaders and participants will make these communities safer.”

“The present operation is just the latest example of the long history of successful cooperation between federal agencies and the state, county, local, and DTF law enforcement personnel of the Fifth District,” said Fifth Judicial District Prosecuting Attorney David Gibbons said. “From the criminal histories of most of those arrested during this operation, it is clear that in some cases state prosecution alone does not have the resources or reach to eliminate those who make a living from drug distribution. This operation will subject those individuals who have made a career of criminal activity to federal prosecution and prison time. As a result, our communities should be safer, healthier, and more pleasant places in which to raise our families.”

In addition to the methamphetamine and firearms recovered, during the investigation agents with the U.S. Postal Inspection Service and the Conway Police Department seized approximately $65,000 from this drug trafficking organization, which conspirators attempted to ship through the U.S. mail from Arkansas to California for payment for methamphetamine. All told, agents seized more than $70,000 in drug proceeds, as well as a Porsche Carrera seized in California that was used to aid methamphetamine distribution in California.

Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Patricia S. Harris beginning at 10 a.m. on Friday.

The investigation was conducted by DEA and ATF, in partnership with the Pope County Sheriff’s Office, Yell County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, and United States Postal Inspection Service.

Wednesday’s arrest operation included the assistance of DEA, ATF, U.S. Postal Inspection Service, United States Marshal’s Service, Arkansas Highway Police, Arkansas National Guard Counter Drug Unit, Arkansas State Police, Arkansas Community Corrections, Pope County Sheriff’s Office, Yell County Sheriff’s Office, Fifth Judicial Drug Task Force, and the Russellville Police Department.

The case is being prosecuted by Assistant United States Attorneys, Liza Jane Brown and Kristin Bryant. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.

# # #

To The Dirt defendant list

STATUTORY SENTENCES

Conspiracy to possess with intent to distribute and to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.

Distribution of 50 grams or more of actual methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.

Distribution of 5 grams or more of actual methamphetamine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.

Distribution of a mixture containing a detectable amount of methamphetamine is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.

Possession of a firearm by a felon is punishable by not more than 10 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.

Use of a firearm in relation to a drug-trafficking crime is punishable by not less than 5 years’ incarceration, not more than life, in the Bureau of Prisons, consecutive to any other conviction, with a possible fine of up to $250,000, and not more than 3 years supervised release.

“TO THE DIRT” FEDERAL FUGITIVE LIST

1. TROY R. LOADHOLT, aka Tricky, 36, Russellville
2. APRIL M. TEETER, aka April Crain, 37, Russellville
3. BRITTANY FERGUSON, aka Brittany Gideon, 26, Russellville
4. RALPH A. ROSS, aka R.A., 53, Atkins
5. BRITANNY S. CONNER, 32, San Pedro, California
6. KATHRINE R. ROSS, aka Katie, 26, Russellville
7. CHRISTOPHER S. HELMS, 34, Dardanelle
8. PAULA S. ENOS, 44, Russellville
9. WESLEY W. PIERSON, 53, Charleston
10. JAMES NICHOLAS GEORGE, aka Nick, 37, Dardanelle
11. KEITH C. SAVAGE, aka K.C., 36, Belleville

United States Attorney Randolph J. Seiler announced that two Mobridge, South Dakota, residents, a man and a woman, have been indicted by a federal grand jury for a violation of the Migratory Bird Treaty Act.

Jeffrey Jensen, age 53, and Amanda Silbernagel, age 30, both d/b/a Jerry’s Pawn Shop, were indicted on September 12, 2017.  They appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.

The maximum penalty upon conviction for this felony offense is up to two years in custody and/or a $250,000 fine, one year of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that between August 19, 2014, and August 21, 2014, Jensen and Silbernagel, d/b/a Jerry’s Pawn Shop, knowingly offered for sale, sold, offer to barter, bartered, delivered for transportation, transported, and caused to be transported, a migratory bird and parts thereof of any such bird.

The charge is merely an accusation and Jensen and Silbernagel are presumed innocent until and unless proven guilty. 

The investigation is being conducted by the U.S. Fish & Wildlife Service.  Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.   

Jensen and Silbernagel were released on bond pending trial.  A trial date has not been set.

CHARLOTTE, N.C. – Today, a Charlotte woman pleaded guilty to wire fraud for embezzling money from a non-profit organization that provides charitable assistance to individuals experiencing financial hardships, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Leah S. Belk, 48, of Charlotte, entered a plea of guilty before U.S. Magistrate Judge David S. Cayer.

Thomas J. Holloman, III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigations (IRS-CI) joins U.S. Attorney Rose in making today’s announcement.

According to the filed plea agreement and other court documents, from August 2010 to March 2017, Belk engaged in a scheme to defraud her employer (the Company), and an affiliated non-profit organization (the Foundation), of which she was a board member, by embezzling funds intended to provide charitable assistance to employees faced with financial hardships.  According to court records, the Foundation received funding primarily from donations made by the Company’s employees through payroll deductions.

Court records show that members of the Foundation’s board of directors, which was comprised of Company employees, evaluated applications received from Company employees to determine whether to award financial assistance based on the employee’s need and the events that contributed to the hardship.  The Foundation typically paid an approved employee’s expenses directly by issuing checks payable to the employee’s mortgage or utility companies to cover the employee’s bills.  The Foundation also purchased Company gift cards to provide to awarded applicants in times of need.

According to court records, Belk was an employee of the Company from 1992 until her termination in March 2017.  From 2006 until her termination, Belk was also a member of the Foundation’s board of directors and acted as the Foundation’s secretary.  Court records show that Belk performed administrative tasks in connection with the Foundation’s operations, including: assembling and logging applications reviewed by the board; communicating directly with applicants; coordinating the initiation and processing of checks to be paid on behalf of awarded applicants; and maintaining control over Company gift cards purchased by the Foundation to provide employees in need. 

Belk admitted in plea documents and in court today that, beginning in August 2010 through March 2017, she used Foundation funds intended for needy Company employees to pay for personal expenses, including her mortgage and utility bills.  Belk also admitted to falsifying and modifying applications and other Foundation documents to cover the fraud. Specifically, Belk admitted to modifying approved applications and documents after payments had been made to awarded applicants, to cause the issuance of additional checks to cover her own personal expenses using Foundation funds.  Belk also diverted applications from the board, and falsified and reused board approval forms, to approve payments and the issuance of checks to cover personal expenses.  Belk also modified rejected applications to falsely reflect that they had been approved, and, based on the falsified approvals, Belk directed the issuance of checks to pay for her personal expenditures.  Court records also show that Belk used Company gift cards intended for needy employees to make purchases for herself.

Over the course of the scheme, Belk falsified documents and diverted payments for her own benefit in approximately 45 separate incidents.  In total, Belk fraudulently diverted more than $77,000 in Foundation funds.

Belk pleaded guilty today to one count of wire fraud and was released on bond. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine.  A sentencing date has not been set yet.

IRS-CI led the investigation.  Assistant United States Attorney William Miller, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.

United States Attorney Randolph J. Seiler announced that a Selby, South Dakota, man, has been indicted by a federal grand jury for a violation of the Migratory Bird Treaty Act.

Steven Marin, age 46, d/b/a Mobridge Pawn, was indicted on September 12, 2017.  He appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.

The maximum penalty upon conviction for this misdemeanor offense is up to six months in custody and/or a $15,000 fine, and $10 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that between June 11, 2014, and June 18, 2014, Marin, d/b/a Mobridge Pawn, possessed, offered for sale, sold, offer to barter, bartered, delivered for transportation, transported, and caused to be transported, a migratory bird and parts thereof of any such bird.

The charge is merely an accusation and Marin is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the U.S. Fish & Wildlife Service.  Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.   

Marin was released on bond pending trial.  A trial date has not been set.

United States Attorney Randolph J. Seiler announced that a Chamberlain, South Dakota man, a Fort Thompson, South Dakota man, and a Box Elder, South Dakota woman have been indicted by a federal grand jury for violations of the Bald and Golden Eagle Protection Act and Lacey Act.

Christopher Pomani, age 37, Michael Pomani, age 40, and Arvella Pomani, age 35, were indicted on August 22, 2017.  They appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to two years in custody and/or a $250,000 fine, one year of supervised release, and up to $175 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on October 27, 2014, Christopher Pomani and Michael Pomani did knowingly, and with wanton disregard for the consequences of their actions, possess, sell, barter, and offer to sell and barter, a bald eagle and a golden eagle and parts thereof.

The indictment also alleges that between October 28, 2014, and October 30, 2014, Michael Pomani and Arvella Pomani also did knowingly, and with wanton disregard for the consequences of their actions, possess, sell, barter, and offer to sell and barter a bald eagle and a golden eagle and parts thereof, as well as knowingly transported, sold, received, acquired, and purchased bald eagles, golden eagles, and various species of hawks and owls.

The charges are merely accusations and all three defendants are presumed innocent until and unless proven guilty. 

The investigation is being conducted by the U.S. Fish & Wildlife Service.  Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.   

Christopher Pomani was remanded to the custody of the U.S. Marshals Service pending trial.  Michael Pomani and Arvella Pomani were released on bond pending trial.  A trial date has not been set.

United States Attorney Randolph J. Seiler announced that a Mandan, North Dakota, man has been indicted by a federal grand jury for violations of the Lacey Act and Bald and Golden Eagle Protection Act.

Sheldon Tree Top, age 43, was indicted on August 22, 2017.  He appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 2 years in custody and/or a $250,000 fine, 1 year of supervised release, and up to $150 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that between August 7, 2014, and August 14, 2014, Tree Top knowingly transported, sold, received, acquired, and purchased bald eagle, golden eagle, and various species of hawks, when Tree Top should have known the protected birds were taken, possessed, transported, and sold in violation of, and in a manner unlawful under the laws and regulations of the United States.  

The charges are merely accusations and Tree Top is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the U.S. Fish & Wildlife Service.  Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.   

Tree Top was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

Jose Perez, 52, of Philadelphia, PA was sentenced today after pleading guilty to one count of conspiracy to defraud the United States announced Acting United States Attorney Louis D. Lappen.  Perez was sentenced to 51 months’ imprisonment and ordered to pay $814,981 in restitution.

Perez admitted that he participated in a scheme that defrauded the United States by filing false income tax returns using stolen identities of Puerto Rico residents.  Perez collected the tax refund checks from addresses he and others controlled and then he gave the checks to another member of the scheme to be cashed.  Between April 2009 and June 2009, Perez and others in the scheme cashed over $800,000 of fraudulently obtained United States Treasury tax refund checks.

The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney David Ignall.

Acting U.S. Attorney Gregory G. Brooker today announced the guilty plea of DONALD THOMAS PERRIN, 57, a registered sex offender, to child pornography charges. PERRIN, who was charged in a criminal complaint on November 9, 2016, pleaded guilty yesterday morning before Judge Wilhelmina M. Wright, moments before his jury trial was set to begin in U.S. District Court in St. Paul, Minn.

“This defendant, a registered sex offender who repeatedly exploited minors, has admitted his guilt and will now face the consequences of his egregious crimes,” said Assistant U.S. Attorney Kate Buzicky. “I am grateful for the dedication and hard work put forth by the FBI and the Carver County Sheriff’s Office throughout the investigation process and in preparation for trial.”

According to his guilty plea and documents filed in court, in the summer of 2014, PERRIN, a registered sex offender, began engaging in sexually explicit online chats with a fifteen-year-old minor. In the fall of 2014, PERRIN was arrested and jailedat Carver County Jail following a violation of his sex offender registration requirement. After he was released from Carver County Jail, PERRIN continued his online communications with the minor and made screen captures of their video chat sessions depicting sexually explicit activity. On February 12, 2016, PERRIN was again arrested and jailed as a result of his non-compliance with his sex offender registration requirements. Following his arrest, law enforcement executed search warrants at PERRIN’S home and recovered several digital devices containing thousands of child pornography files. PERRIN was scheduled to begin trial on October 10, before U.S. District Judge Wilhelmina M. Wright in St. Paul, Minn.

This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.  In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.

This case is the result of an investigation conducted by the FBI and the Carver County Sheriff’s Office.

Assistant United States Attorneys Katherine T. Buzicky and Angela Munoz-Kaphing are prosecuting this case.

Defendant Information:

DONALD THOMAS PERRIN, 57

Sherburne County Jail

Convicted:

• Production of child pornography, 1 count
• Commission of a felony while being required to register as a sex offender, 1 count

###

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

HOUSTON - A former congressional staffer pleaded guilty today for his role in  orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to pay for personal expenses and to illegally finance a former congressman’s campaigns for public office, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.

Jason T. Posey, 46, formerly of Houston and currently residing in Mississippi, pleaded guilty to one count of mail fraud, one count of wire fraud and one count of money laundering before Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. Sentencing is set for March 29, 2018.

According to admissions made in connection with Posey’s plea, Posey served as director of special projects for former U.S. Congressman Stephen E. Stockman, 60, of the Houston area, from in or around January 2013 until in or around November 2013. Posey admitted that, at Stockman’s direction, he and another congressional staffer, Thomas Dodd, 38, also of the Houston area, illegally funneled $15,000 of charitable proceeds into Stockman’s campaign bank account and caused the campaign to file reports with the Federal Election Commission (FEC) that falsely stated that the money was a contribution from their parents and from the staffers themselves. According to Posey’s admissions, Stockman also directed Posey to send a letter to a charitable donor that falsely stated the donor’s $350,000 donation had been used to support a charitable endeavor, when the funds were actually used for other purposes to include Stockman’s campaigns for public office.

In connection with his plea, Posey also admitted he and Stockman raised $450,571.65 to support Stockman’s 2014 Senate campaign by falsely representing to a donor that the funds would be used to support a legitimate independent expenditure by an independent advocacy group Posey headed. In fact, according to Posey, Stockman personally directed and supervised the activities of the purportedly independent group, including the printing and mailing of hundreds of thousands of copies of a pro-Stockman publication to Texas voters. Posey also admitted he submitted a false affidavit to the FEC in order to conceal the scheme.

Dodd pleaded guilty on March 20 to conspiracy to commit mail and wire fraud and conspiracy to make illegal conduit contributions and false statements to the FEC. 

Stockman’s trial is scheduled to begin on Jan. 29, 2018. The charges and allegations against him are merely accusations. He is presumed innocent until and unless proven guilty.

The FBI and IRS-CI are investigating the case. Assistant U.S. Attorney Melissa Annis is prosecuting the case along with Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section.  

Acting United States Attorney Gregory G. Brooker today announced the sentencing ofSENG XIONG, 49, to 87 months in prison for operating an affinity scheme targeting members of the Hmong community. XIONG, who was found guilty on January 26, 2017, following an eight-day jury trial, was sentenced today before Judge Susan Richard Nelson in U.S. District Court in Saint Paul, Minn.

As proven at trial, from at least mid-2014 through approximately March 2016, XIONG conducted a fraud scheme through his organization “Hmong Tebchaws,”which translates to “Hmong Country,” in which members of the Hmong community were directed to deposit $3,000 to $5,000 into a bank account held in the name of SENG XIONG. In exchange for the payments, victims were promised 10 acres of land, a house, and many other benefits in a future country that would be established as a Hmong homeland somewhere in Southeast Asia.

As proven at trial, XIONG claimed to be working closely with the United States government and the United Nations to establish the new Hmong country somewhere in Southeast Asia. Through a series of YouTube videos and nationwide conference calls, XIONG promoted his scheme in the Hmong language, claiming that he was working with high-ranking officials who had “approved” or “authorized” his proposal and had arranged for land to be set aside for XIONG and his followers.

As proven at trial, XIONG offered several investment options that purported to represent varying levels of return that “founders” would be able to receive on their investment in the new country. Investments between $3,000 and $5,000 would guarantee the investor and his or her future generations, land, a house, free healthcare, free education, and government financial assistance for people over 65 years of age, as well as a return on that investment equal to a percentage of the income generated by the new Hmong country.  Those who could not afford the $3,000 - $5,000 “founders” option could pay $20 per month, or $240 per year. This lesser investment would secure a spot in the new Hmong country along with some of the benefits.

This case was the result of an investigation conducted by the Saint Paul Police Department, United States Secret Service, Federal Bureau of Investigation, Minnesota Financial Crimes Task Force, and Appleton Police Department.

Special assistance was provided by the United States Attorney’s Offices for the Eastern District of California.

Assistant United States Attorneys Amber M. Brennan and Surya Saxena prosecuted this case.

Defendant Information:

SENG XIONG, 49

Maplewood, Minn.

Convicted:

• Wire fraud, 1 count
• Mail fraud, 1 count

 
Sentenced:

• 87 months in prison
• Three years supervised release
• $1,226,466.00 in restitution to victims
   

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

HOUSTON – A partial owner of several Florida-based energy companies pleaded guilty today to foreign bribery charges for his role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).

Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston office made the announcement.

Fernando Ardila Rueda (Ardila), 49, of Miami, Florida, pleaded guilty in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Gray H. Miller accepted the guilty plea. Sentencing is scheduled for Feb. 8, 2018.   

According to admissions made in connection with his plea, Ardila conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. The bribes were paid to ensure that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels and in order to obtain or retain business with PDVSA. From 2008 through 2014, while he was sales director, manager and partial owner of several of Shiera’s companies, Ardila provided entertainment and offered bribes to PDVSA officials based on a percentage of the value of contracts the officials helped to award to Shiera’s companies.  

Including Ardila, the Justice Department has announced a total of 10 individuals have pleaded guilty and are pending sentencing as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.

ICE-HSI is conducting the ongoing investigation with assistance from IRS - Criminal Investigation. Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case along with Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case. 

The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance. 

The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

             WASHINGTON – A congressional staffer was charged today with filing a false security clearance form, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Jessie K. Liu for the District of Columbia, and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office.

            According to the indictment, Issac Lanier Avant, a resident of Arlington, Va., was a staff member employed by the House of Representatives since approximately 2000.  Since 2002, Avant has been the Chief of Staff for a member of Congress.  In approximately December 2006, he began an additional position for the House Committee on Homeland Security, including Deputy Staff Director and Staff Director.  The indictment charges that from 2008 through 2012, Avant earned wages of approximately $170,000 and failed to file an individual income tax return with the Internal Revenue Service (IRS) during those years.  Avant allegedly had no federal income withheld during those years because in May 2005, he caused a form to be filed with his employer that falsely claimed he was exempt from federal income taxes.  According to the indictment, Avant did not have any federal tax withheld from his paycheck until the IRS mandated that his employer begin withholding in January 2013. 

            In 2008 and again in 2013, for his position with the Committee on Homeland Security, Avant allegedly completed a Standard Form 86, “Questionnaire for National Security Positions” (SF-86), in order to receive a Top Secret security clearance.  The indictment charges that on Sept. 18, 2013, Avant willfully made a false statement by responding “no” to the following question on a SF-86: “In the past seven (7) years have you failed to file or pay federal, state, or other taxes when required by law or ordinance?” 

            If convicted, Avant faces a statutory maximum prison term of five years, as well as a term of supervised release and monetary penalties. 

            An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.

            Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Liu thanked special agents of the FBI, who conducted the investigation, and Assistant U.S. Attorney John Marston and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.

            Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

 Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that LAQUAN PARRISH, a/k/a “MadDog,” a/k/a “Quanzaa,” a leader of a violent street gang in the Bronx called the “2Fly YGz” (“2Fly”), was sentenced today to 195 months in prison on racketeering and firearms charges.  PARRISH was sentenced by United States District Judge Lewis A. Kaplan.  

Acting U.S. Attorney Joon H. Kim said:  “Laquan Parrish led the violent 2Fly street gang, and participated in the gang’s violence.  In August 2012, Parrish and other 2Fly members opened gunfire at a group of rival gang members sitting in a playground.  By good fortune, no one was killed, but a bullet struck one rival gang member in the chest and another in the leg, and a 14-year-old girl was wounded in the crossfire.  Today’s sentence holds Parrish accountable for this senseless violence.”

According to the Indictment and other documents filed in the case, as well as statements made during the public proceedings in this case:

PARRISH was a leader of 2Fly, a subset of the “Young Gunnaz,” or “YGz” street gang, which operates throughout New York City.  2Fly is based in the Bronx, within and around the Eastchester Gardens public housing development (“ECG”) and in an area called the “Valley” or the “V,” which is in the vicinity of Gun Hill Road.  ECG is a rectangular complex of residential buildings bordered by Burke, Adee, Yates, and Bouck Avenues, in the middle of which is a playground.  The gang war between 2Fly and rival street gangs has led to an enormous amount of fatal and non-fatal violence between 2007 and 2016 in the Northern Bronx, including shootings, stabbings, slashings, beatings, and robberies.  Members and associates of 2Fly controlled the narcotics trade at ECG, which took place in the open air at the playground and in apartments at ECG.  2Fly primarily sold marijuana and crack cocaine, but also sold powder cocaine and prescription pills, such as oxycodone.  2Fly members and associates stored guns at the playground or in nearby apartments or cars in order to protect the narcotics business and for protection against rival gangs.

In addition to leading 2Fly, PARRISH personally participated in a number of acts of violence with the Gang, including a shootout with rival gang members on August 7, 2012, in a public park in the Bronx.  Three victims were shot, including a 14-year-old girl caught in the crossfire.

*                      *                     *

PARRISH, 27, of the Bronx, New York, was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx.  On April 27, 2016, the Indictment captioned United States v. Laquan Parrish et al., 16 Cr. 212 (LAK) was unsealed, charging 57 members and associates of 2Fly with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and/or firearms charges.  To date, 54 of these defendants have pled guilty.

Mr. Kim praised the outstanding work of NYPD’s Bronx Gang Squad, HSI, DEA, and ATF.  He also thanked the Bronx County District Attorney’s Office, the Department of Investigation, NYCHA Inspector General’s Office, and the New York State Department of Parole for their ongoing support in this investigation.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Skinner are in charge of the prosecution.

SAN JOSE – Hung Ha was sentenced today to 36 months’ imprisonment for threatening IRS employees at the San Jose Taxpayer Assistance Center, announced United States Attorney Brian J. Stretch.  The sentence was handed down by the Honorable Lucy Koh, U.S. District Judge, following a jury trial resulting in Ha’s conviction of the crime.

Ha, 41, of San Jose, was indicted by a federal grand jury on April 22, 2015.  He was charged with threatening a federal official.  Ha was convicted on July 17, 2017, by a jury after a four day trial.  During the trial, evidence showed that Ha threatened to bomb the San Jose IRS Taxpayer Assistance Center.  Specifically, Ha demanded a tax refund he believed he was owed and said that if the IRS refused to give him the refund, he would bomb the office.  Ha was charged with two counts of threatening federal officials, in violation of 18 U.S.C. § 115(a)(1)(B).  The jury convicted Ha of one count.  

In addition to the prison term, Judge Koh sentenced the defendant to a three year period of supervised release.  The defendant is in custody and will begin serving the sentence immediately.

Assistant U.S. Attorney Scott Simeon and Special Assistant U.S. Attorney Christopher Vieira prosecuted the case with the assistance of Mimi Lam and Ryka Barghi.  The prosecution is the result of an investigation by the Treasury Inspector General for Tax Administration.
 

ALBANY, NEW YORK – Celso Diaz Ramirez, 39, of Guatemala, was sentenced today to time served (34 days), for illegally re-entering the United States. 

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

As part of his guilty plea, Diaz Ramirez admitted that he was an alien, a citizen of Guatemala, and that he illegally returned to the United States after he was removed to Guatemala on July 8, 2014.

Diaz Ramirez was previously removed on May 27, 2011, February 1, 2012, April 9, 2012 and May 13, 2013.

On September 7, 2017, Diaz Ramirez was encountered and arrested by ICE officers in Middleburgh, New York. 

Following the sentencing, Diaz Ramirez was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.

The case was investigated by United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

BINGHAMTON, NEW YORK - Nicholas Feminella, 21, formerly of Danby, New York, was sentenced today to serve 72 months in prison for transporting and possessing child pornography,  announced Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent-in-Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). 

As part of his guilty plea, Feminella admitted that he transported videos of child pornography by uploading them from his computer to a Drop Box account. On November 3, 2015, investigators searched Feminella’s residence in Danby, New York and recovered thousands of images and hundreds of videos depicting child pornography.

Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Feminella is released from prison, and ordered him to pay $20,000.00 in restitution to the victims, and a $200 special assessment. As a result of his conviction, Feminella will be required to register as a sex offender upon his release from prison.

This case was investigated by the FBI, the New York State Police-Computer Crime Unit and Investigators from the New York State Police, Troop C.

This case was prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.

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.