BOSTON – A former teller at Lenox National Bank pleaded guilty today in U.S. District Court in Springfield in connection with embezzling more than $375,000 from the bank and concealing the theft with false bank records.  

Melissa J. Scolforo, 47, of Lee, Mass., pleaded guilty to one count of conspiracy to embezzle bank funds and make false entries in bank records.  U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 15, 2016. 

Scolforo was a teller at Lenox National Bank for 24 years.  From 2009 to November 2013, Scolforo and co-defendant Bernadine Powers took cash from the bank’s teller drawers and bank vaults and used the money for personal expenses including traveling, shopping, dining at restaurants, and paying household bills.  In addition, Powers made false entries in bank records to conceal their theft of $378,000 from the bank.

Earlier this month, Bernadine Powers, 40, of Becket, Mass., was indicted on the same charge.

The maximum sentence under the statute is five years in prison, followed by three years of supervised release and a $250,000 fine.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation in Boston made the announcement today.  The case is being prosecution by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.

BOSTON – Seven Brockton residents were indicted in U.S. District Court in Boston with trafficking fentanyl and with firearms-related charges. 

Luis DaCosta, 21, aka “Jesse” and “Slu;” Gilvan Monteiro, 25, aka “G;” Edson Gomes, 19, aka “E” and “Evil;” Seidica Monteiro, 27; Jeffrey Oliveira, 21, aka “Chubbs;” and Justin Marceline, 33, were charged with one count of conspiracy to possess with intent to distribute fentanyl.  Gomes and DaCosta are also charged with possession of a firearm in furtherance of a drug trafficking crime.  Gabriel Nieves, 24, is also charged with one count of being an unlawful user of controlled substance in possession of a firearm and ammunition.

DaCosta, Gomes and Monteiro were already in federal custody following their arrests on a criminal complaint on April 4, 2016.  Monteiro was arrested this morning and detained pending a detention hearing scheduled for May 24, 2016.  Marceline is scheduled to appear in U.S. District Court in Boston tomorrow.  Oliveira remains a fugitive and information on his whereabouts, should be directed to the Brockton Police Department.  Nieves was already in state custody on related state charges. 

According to charging documents, from December 2015 to March 2016, the defendants sold fentanyl on numerous occasions in the Brockton area, and several times the drug was seized by law enforcement officers from the defendants’ associates.  In addition, on Feb. 11, 2016, law enforcement officers seized a loaded Smith and Wesson .40 caliber handgun from an associate of Gomes’s during a vehicle stop, and seized a loaded Smith and Wesson 9mm handgun and more than 30 grams of fentanyl from the hotel room in which both Monteiro and DaCosta were staying when they were arrested on April 5, 2016.

According to the complaint affidavit, the defendants are alleged to have violent histories and gang associations.  Monteiro has a lengthy criminal record which includes narcotics and firearms offenses and assault and battery with a dangerous weapon.  According to the affidavit, law enforcement seized fentanyl from Monteiro’s customers on numerous occasions.  Gomes, who also has a violent criminal history, is alleged to have engaged in gang-related shootings and a car chase with police as recently as December 2015.  According to the affidavit, DaCosta was recently released on bail after he allegedly shot a person in Rhode Island on March 19, 2016.  DaCosta also allegedly sold fentanyl to a person that overdosed in February 2016. 

This case is brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states.  A recent surge in overdose deaths has been attributed in part to the addition of Fentanyl to heroin.  Fentanyl is a powerful synthetic opiate that is 50 to 100 times more potent than morphine and, when added to heroin, creates a toxic mixture substantially more potent, and more dangerous, than heroin alone.

The conspiracy charge provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release and a fine of $1 million.  The charge of firearm possession in furtherance of drug trafficking provides an additional five years in prison to the sentence.  The charge of unlawful user of a controlled substance in possession of a firearm and ammunition carries a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley, made the announcement today.  The case was investigated by the Federal Bureau of Investigation, the Massachusetts State Police assigned to the Plymouth Country District Attorney’s Office, MSP CAT Team, MSP Gang Unit, the New England High Intensity Drug Trafficking Area (HIDTA), and the Brockton and Randolph Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Glenn A. MacKinlay of Ortiz’s Organized Crime and Gang Unit.

The details contained in the charging documents are allegations.  The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

CHARLOTTE, N.C. – U.S. District Judge Martin Reidinger sentenced today Robert Joseph Lamb, 30, of Brevard, N.C., to 207 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Lamb, a/k/a “Ezra,” was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.           

U.S. Attorney Rose is joined in making today’s announcement by Special Agent in Charge Alan K. Flora of SBI Computer Crimes Unit and Commander of the North Carolina Internet Crimes Against Children Task Force, Sheriff David Mahoney of the Transylvania County Sheriff’s Office and Chief Tammy Hooper of the Asheville Police Department. 

According to filed documents and statements made in court, on or about January 7, 2014, the Transylvania County Sheriff’s Office received a tip that Lamb possessed images and videos of child pornography.  A deputy with the sheriff’s office acting in an undercover capacity first contacted Lamb via the Internet.  In a subsequent phone conversation, Lamb told the officer that he possessed child pornography and the two arranged to meet after the undercover officer expressed an interest in viewing Lamb’s child pornography collection.  According to court records, Lamb met the undercover officer and the two went to Lamb’s residence, where Lamb proceeded to show the officer numerous images and videos of child pornography. 

Court records show that Lamb had an extensive collection of child pornography, some of which depicted children under the age of five being sexually abused by adults.  According to court records, over the course of the meeting, Lamb expressed an interest in engaging in sexual contact with young children.  Lamb discussed with the undercover officer the idea of kidnapping, sexually abusing and murdering a child.  According to court records, when the undercover officer told Lamb that he had a six-year-old daughter, Lamb offered to pay the officer to engage in sexual contact with her, and gave the officer $100 as “down payment.” 

On October 31, 2014, law enforcement executed a search warrant at Lamb’s residence.  A forensic analysis of devices seized from Lamb’s residence revealed that Lamb possessed an extensive collection of child pornography, consisting of 816 images and 72 videos.  According to court records, Lamb had also distributed at least 314 times some of his child pornography images and videos via video and photo sharing applications and the Internet.

“Lamb had a sick appetite for watching horrific videos depicting the sexual abuse of very young children.  His extensive child pornography collection included images that were among the worst ever described to the court.  Thanks to the excellent investigative efforts of our law enforcement partners we have secured a long prison sentence against Lamb and have successfully removed this dangerous child predator from our community,” said U.S. Attorney Rose.

“Men like Lamb are the reason that the ICAC Task Force exists.  Lamb epitomizes the type of dangerous predator we hunt.  Even though we deal with this subject matter every day, the Lamb case was particularly horrific to those of us involved.  We learned on the morning of Halloween that Lamb was fantasizing about kidnapping, raping and murdering a child.  Thanks to the quick response by our partners in the ICAC Task Force, we were able to obtain and execute a search warrant at the home that afternoon, a short time before the first trick-or-treaters appeared on the streets of Brevard.  We are very grateful that this case has resolved in such a way that no children were harmed, and a true predator has been removed from that community,” said Special Agent in Charge Flora.

Lamb pleaded guilty in October 2015 to one count of transportation of child pornography and one count of possession of child pornography.     He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.  Federal sentences are served without the possibility of parole.

The investigation was handled by the SBI, the Transylvania Sheriff’s Office and the Asheville Police Department.  These agencies are all members of the North Carolina Internet Crimes Against Children Task Force.  The U.S. Attorney’s Office in Asheville prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children.  By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

ASHEVILLE, N.C. – James Timothy Wilson, 66, of Marion, N.C. was sentenced today to 45 months in prison on passport fraud and aggravated identity theft charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Wilson was also ordered to serve two years under court supervision after he is released from prison.

Thomas Haycraft, Special Agent in Charge of the Washington Field Office, U.S. Department of State, Diplomatic Security Service and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) join U.S. Attorney Rose in making today’s announcement.

According to filed plea documents and today’s sentencing hearing, in June 2009, Wilson stole the identities of two individuals who were employed by Henderson-based Quality Rubber Manufacturing Company Inc. (QRMC), a company previously owned by Wilson.  Using the stolen information, Wilson obtained North Carolina Driver’s Licenses and birth certificates in each of the victim’s name, which he then used as proof of identity to apply for and fraudulently obtain U.S. passports.  According to court records, Wilson used the fraudulent passports to fly internationally, including to Colombia and Mexico. 

According to court records, Wilson accessed and used without permission a third individual’s passport to fly internationally.  The victim, who also worked at QRMC, discovered his passport was missing after he had left it on his desk at work.  Later, the victim discovered his passport had been returned, and noticed the pages were stamped, indicating international travel.  Wilson had used that victim’s passport to fly to Colombia and to Costa Rica.

In announcing today’s sentence, U.S. District Judge Martin Reidinger said that Wilson engaged “in a pattern of dishonesty,” and ordered Wilson to pay $3,000 fine in addition to the prison term imposed.

Wilson pleaded guilty in February 2016 to three counts of making a false statement on an application and two counts of aggravated identity theft.

The investigation was handled by the U.S. Department of State’s Diplomatic Security Service and IRS-CI.

Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.

NORFOLK, Va. – Eugene Deandre Tillery, 20, of Suffolk, was indicted by a federal grand jury yesterday on seven counts of distributing Fentanyl, which is a very potent pain killer used in the medical profession. 

According to the indictment, from Nov. 14, 2015 through Dec. 2, 2015, the DEA with assistance from the Suffolk Police Department conducted a series of controlled purchases from Tillery. The agents thought they were purchasing heroin from Tillery, but an analysis of the drugs by a laboratory revealed that the drugs were Fentanyl.  The agents made six purchases from Tillery which ranged from 45 to 100 capsules per purchase.

“Even a small amount of fentanyl can be lethal,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “There is a disturbing trend across the nation, including here in the Tidewater area, of heroin dealers adding fentanyl to their heroin to increase the potency.  As a result, we have seen an alarming increase in overdoses, many of which have resulted in death. Arrests and criminal prosecutions alone will not solve this problem. We must continue to strive for increases in education, treatment, and prevention.” 

“Drug dealers selling heroin-laced fentanyl or replacing the heroin entirely with fentanyl is an alarming trend and a tremendous threat to public safety,” said Karl C. Colder, Special Agent in Charge of the DEA’s Washington Field Division.  “There is no safe amount of fentanyl that can be bought on the street. We are seeing fentanyl and heroin related overdose deaths in record numbers across Virginia, as people from all walks of life are becoming addicted to these highly dangerous drugs. DEA will continue to work with our law enforcement partners, as exemplified in this investigation, to aggressively pursue those who ruthlessly traffic these drugs.”

“Like most cities across the nation, Suffolk has seen a dramatic increase in the number of heroin and fentanyl overdoses and deaths,” said Thomas Bennett, Chief of Police, Suffolk Police Department.  “Addressing this issue has become a priority for our agency, not only from an enforcement perspective but also from an emergency treatment standpoint.”

Tillery faces a maximum penalty of 20 years in prison, if convicted.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the DEA’s Washington Field Division; and Thomas E. Bennett, Chief of Police, Suffolk Police Department, made the announcement after his arrest and initial appearance today.  Assistant U.S. Attorney William D. Muhr is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16cr77.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

ALEXANDRIA, Va. – Ernest Xavier Taylor, Jr., 31, and Tracie Laverne Mixon, 34, both of Hammond, Louisiana, were indicted by a federal grand jury today on charges relating to stealing the identities of four people to fraudulently obtain federal student loans from Northern Virginia Community College (NVCC) and other schools. 

According to the indictment, Taylor Jr. and Mixon are charged with conspiracy, mail fraud, wire fraud, financial aid fraud, and aggravated identity theft. In 2015, Taylor Jr. and Mixon engaged in a conspiracy to use the identity of four different people to fraudulently obtain federal student aid from NVCC and other schools. The four different people included three who were in prison at the time their identities were used, and the fourth person was recovering in a military hospital after suffering injuries while deployed as a member of the U.S. Army in Afghanistan.

The indictment alleges that Taylor Jr. and Mixon would use the names, dates of birth, and social security numbers of these four different people on various submissions, but Taylor Jr. and Mixon would supply their own addresses, emails, and telephone numbers to ensure that communications from the Department of Education, NVCC, and the other schools would be directed to Taylor Jr. and Mixon. The indictment also alleges that recorded telephone calls captured Taylor Jr. pretending to be the four different identities when calling to check on the status of financial aid from NVCC. Taylor Jr. and Mixon’s fraudulent actions allegedly caused NVCC and other schools to offer approximately $67,000 in federal student aid to the various identities used by Taylor Jr. and Mixon.

In addition to NVCC, the other schools targeted by Taylor Jr. and Mixon are: Front Range Community College; Community College of Denver; Portland Community College; and Black Hills State University.

Special Assistant U.S. Attorneys Brian D. Harrison and Edward P. Sullivan are prosecuting the case.  The case is being investigated by the Department of Education, Office of Inspector General and the FBI.  The investigation received assistance from the Northern Virginia Community College Police Department.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-CR-118.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., in conjunction with U.S. District Court Judge David J. Hale, U.S. District Court Magistrate Judge Colin H. Lindsay, Chief U.S. Probation Officer Kathryn B. Jarvis, Chief of Staff Robley Rex VA Medical Center Dr. Mary Lee Rothchild, and Chief Federal Defender Scott Wendelsdorf, today announced the newly established Veterans Treatment Court (VTC) Program for the Western District of Kentucky.

“Our nation is indebted to our veterans for their service and sacrifice," stated U.S. Attorney Kuhn. "Many return from combat with serious mental health and substance abuse issues that often go untreated. We have learned that these challenges sometimes lead to criminal behavior,” stated U.S. Attorney John Kuhn. “We expect this program will curb recidivism in our veteran community and promote sober and crime-free lives that our veterans deserve.”

"Our agency is committed to helping connect those on our case loads with the opportunities, skills, and resources for change. To that end, the Veteran Treatment Court allows us to more intentionally target and tailor our efforts to better serve justice involved veterans.  Developing this program also helped us identify new veteran specific community resources which will allow us to better serve all veterans, not just those who are eligible for the treatment court," stated Kathryn Jarvis, Chief U.S. Probation Officer. 

“The Robley Rex VAMC and Veterans Justice program is proud and honored to be a partner with the Western District Federal court, the U.S Attorney’s Office and the U.S. Probation and Parole office in the implementation of the Western District Federal Veterans treatment court. The Veterans treatment court is a model for assisting our Veteran population who have found themselves legally involved due to their often times untreated co-occurring mental health and substance abuse treatment issues or their difficulties with adjusting  to civilian life.   This partnership will include matching the legally involved Veteran with a mentor as well as identifying and addressing their housing, employment and pro-social needs, in order to empower their continued service to our community post military as they work within this partnership to resolve their criminal offense,” stated Sonny Hatfield, U.S. Department of Veterans Affairs.

The VTC allows qualified veterans charged with certain non-violent federal crimes to enroll in an intensive court-managed treatment program as an alternative to prison.  This program was made possible through a collaborative agreement between the U.S. District Court, the U.S. Attorney's Office, the U.S. Probation Office, and the U.S. Department of Veterans Affairs.  The mission of the VTC is to promote community safety and reduce recidivism by helping justice-involved veterans obtain needed mental health and addiction treatment.  Voluntary participants will be monitored and held accountable by the Court-managed program to insure participants attain treatment and rehabilitation.

Veterans who have not been convicted of or charged with violent or sexual offenses may enter the VTC Program in one of three ways: as defendants facing federal misdemeanor charges; as defendants facing federal felony charges; or as felons facing revocation of supervised release after having served any sentence of incarceration.

Veterans Treatment Court requires enrollees to engage in intensive multi-stage professional counseling and treatment for issues involving substance abuse, mental health, disability, finances, and other difficulties, including those related to their military service. They must also abide by strict conditions, follow rigorous treatment plans, and attend scheduled hearings before a judge. 

Most participants will be required to participate in the program for 18 months.  Upon successfully completion of the voluntary program, veterans can expect the U.S. Attorney’s Office to reduce the charges to a lesser offense, refer the Veteran-Participant to Pretrial Diversion, or dismiss the charges entirely. Most importantly, Veteran-Participants will receive treatment that may help them regain hope for a sober and crime-free life.

The VTC program is only possible due to the availability of rehabilitative programs offered by the VA.  Because the VTC program's essential treatment and counseling services are furnished by the VA Medical Center, veterans must be eligible to receive VA benefits in order to participate.

According to a report by the Bureau of Justice Statistics, the number of military veterans in jails and prisons continues to drop since 1978, when 24 percent of prisoners were veterans. Currently veterans make up 8 percent of the inmate population in local jails, state facilities and federal prison. The increasing number of Veterans’ Courts is partly credited for the lower incarceration rate. However, a Department of Veterans Affairs study determined that from 1999 through 2010, between 18 and 22 veterans commit suicide each day in the United States.

A Memorandum of Understanding (MOU) was signed today by officials from each participating agency during a ceremony held in the Gene Snyder United States Courthouse. The MOU establishes the rights and responsibilities of each stakeholder involved in the VTC program and outlines the expectations for the program's veteran-participants. 

DALLAS— The U.S. Attorney’s Office for the Northern District of Texas’s Mock Trial Academy, conducted as part of the District’s ongoing Crime Prevention and Community Outreach component of the Justice Department’s Smart on Crime initiative, concluded this week with fifth grade students from Gabe Allen Elementary School in West Dallas participating in a mock trial held in a federal courtroom in Dallas.

“Establishing a positive relationship with today’s youth is vital to the prevention of crime and violence in our communities,” said U.S. Attorney John Parker of the Northern District of Texas.  “Through this Mock Trial Academy, these students directly interacted with professionals in law and law enforcement, gaining not only an insider’s perspective of our legal system, but an opportunity to explore career opportunities in law enforcement and criminal justice.”

Approximately 30 fifth-graders met with representatives from the U.S. Attorney’s Office throughout the academy to learn about our criminal justice system.  The students were guided through the trial process and had an opportunity to further develop their listening, problem solving, and communication skills.

All of the participants in this week’s mock trial were students who played the roles of judge, court security officers, lawyers, witnesses and jurors in the case of U.S. v. Mary Witch, in which defendant Witch was accused of kidnapping Hansel and Gretel.  The court was brought to order by the young judge and young bailiffs ensured courtroom procedures were followed.  After hearing the evidence presented, the group of 12 young jurors, who had not heard about the case prior to trial, had the opportunity to deliberate, decide on a verdict, and present that verdict to the court. 

Following the mock trial, a graduation ceremony, where the students were presented certificates and junior U.S. Attorney badges, and a reception were held in the U.S. Attorney’s Office.

Smart on Crime, a DOJ initiative announced in 2013, acknowledges that while aggressive enforcement of federal criminal statutes remains necessary, we cannot arrest and incarcerate our way to becoming a safer nation.  To be effective, federal efforts must also focus on other components of criminal justice, like crime prevention and reentry.  In fact, during last month’s Smart on Crime’s National Reentry Week in north Texas, the District sponsored and coordinated several events to raise awareness of the importance of reentry work.

More information about Smart on Crime may be found here.  Information regarding Reentry efforts in the Northern District of Texas may be found here and resources regarding the Department’s Reentry efforts may be found here. 

# # #

On Friday, May 20, 2016, a complaint was unsealed in Brooklyn federal court charging Djevair Ametovski, a Macedonian citizen also known as “codeshop,” “sindrom,” and “sindromx,” with crimes related to his operation of the website Codeshop.su, a website allegedly created for the sole purpose of selling illegally obtained credit and debit card data and personal identification information for financial gain.  The charges include aggravated identity theft, access device fraud conspiracy, and wire fraud conspiracy.  The defendant is scheduled to be arraigned at 11 a.m. tomorrow, May 21, 2016, before United States Magistrate Judge Roanne L. Mann at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and David E. Beach, Special Agent in Charge, United States Secret Service, New York Field Office.

“Cybercriminals who create and operate online criminal marketplaces in which innocent victims’ financial and personal information are bought and sold erode consumer trust in modern-day payment systems and cause millions of dollars in losses to financial institutions and unsuspecting individuals.  Today marks a major step in bringing the alleged operator of one such criminal marketplace to justice, and should serve as a warning to others who seek to profit from perpetuating these fraudulent schemes,” stated United States Attorney Capers.  Mr. Capers cited the extraordinary efforts of the Secret Service, the agency responsible for leading the government’s investigation, and also thanked the Slovenian Ministry of the Interior and Ministry of Justice, for their assistance in the investigation and effecting the defendant’s extradition, the United States Marshals Service, for their assistance in transporting the defendant to the United States, and the U.S. Department of State Regional Security Officers in Slovenia and the Netherlands, for their assistance in facilitating the defendant’s extradition.   

“Today’s extradition of alleged cybercriminal Djevair Ametovski from Central Europe is the culmination of a seven-year investigation and demonstrates the relentless pursuit by the Secret Service and its international partners to bring cybercriminals to justice.  Multinational cyber investigations require establishing critical partnerships with our international law enforcement partners.  The immeasurable assistance provided to our New York Electronic Crimes Task Force by the Slovenian Authorities in this case illustrates that our investigative reach will continue to expand beyond the borders of the United States,” said Special Agent in Charge Beach of the United States Secret Service New York Field Office.

As detailed in the complaint, Ametovski obtained valuable data from hackers, who stole it from financial institutions and other businesses or from individuals using “phishing” tactics.[1]  Ametovski then sold the data on his website, a fully indexed and searchable website that allowed users to search through databases of stolen data by bank identification number, financial institution, country, state, and card brand to find the precise data that they wished to buy.  Individuals who bought data from the website generally used it to make online purchases and to encode plastic cards with the data and use the cards to withdraw cash at ATMs.  Ametovski used a network of online money exchangers and digital currencies to pay the hackers who fed him data and to receive payments from the website users who bought data in order to conceal all participants’ identities, including his own.  Over the course of the scheme, Ametovski obtained and sold credit and debit card data for more than 181,000 different cards.  In many instances, the data included personal details associated with the account holder, including email address, billing address, phone number, and account holder name.  The charged scheme resulted in millions of dollars in financial losses to thousands of victims around the world. 

Ametovski was arrested in Ljubljana, Slovenia, on January 22, 2014, and was extradited to the United States today.

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

The government’s case is being handled by the Office’s National Security & Cybercrime Section.  Assistant United States Attorneys Una Dean, Saritha Komatireddy, and Hilary Jager are in charge of the prosecution.  Substantial assistance was provided by Marcus Busch of the Justice Department’s Office of International Affairs.

The Defendant:

DJEVAIR AMETOVSKI
Alias:  Codeshop, Sindrom, Sindromx
Age: 29
Nationality:  Macedonian E.D.N.Y. Docket No. 14 M 058

Preet Bharara, United States Attorney for the Southern District of New York, announced today that ROBERT LEES, a former senior executive of Universal Forest Products, Inc. (“UFP”) was convicted a jury of conspiracy, mail fraud, money laundering and making false statements in a loan application following a seven-day trial in White Plains before United States District Judge Kenneth M. Karas.

Manhattan U.S. Attorney Preet Bharara said: “Today, a jury unanimously found that Robert Lees, a senior executive at Universal Forest Products, participated in a kickback scheme that defrauded both HUD and a mortgage lender.  This verdict should serve as a warning to other corporate executives tempted by fraud.”

The evidence at trial proved that, in or about 2009, Michael Barnett, a real-estate developer, hired JK Scanlan Company, Inc. (“Scanlan”) to be the general contractor on Vineyard Commons, a senior housing community in Ulster County.  In or about 2009, Scanlan entered into falsely inflated contracts with Shawnlee Construction, LLC (“Shawnlee”), a subsidiary of UFP for which LEES had responsibility, to be the subcontractor on Vineyard Commons responsible for framing and rough carpentry.

In or about 2009, a private lender (the “Mortgagor”), agreed to provide financing to Vineyard Commons, which financing would be insured by HUD.  The Mortgagor and the borrower agreed that the proceeds would be disbursed incrementally after the borrower submitted draw requests based upon its completion of phases of the project.

On or about January 19, 2009, Shawnlee provided Scanlan a final bid to supply labor and materials for Vineyard Commons.  In or about March and April 2009, representatives of UFP – including LEES – Shawnlee, and Scanlan entered into an agreement by which UFP and Shawnlee agreed to provide labor and materials in an amount approximately $865,000 greater than the final bid.  LEES and others intended for the approximately $865,000 difference between the final bid and the inflated contract price to be returned to Barnett as a kickback, and further intended that the Mortgagor would unwittingly finance the kickback by disbursing HUD-insured funds on the basis of inflated draw requests.

In or about early 2009, Scanlan’s owner agreed to provide Barnett and Vineyard Commons with a million-dollar loan.  In order to obtain this loan, Barnett informally pledged the anticipated $865,000 kickback to Scanlan’s owner as collateral.

In or about June 2009, Barnett needed additional funds in order to secure HUD-insured financing from the Mortgagor.  UFP provided a $650,000 letter of credit to the Mortgagor.  Barnett informally pledged the anticipated approximately $865,000 kickback to UFP as collateral, even though it was already pledged to Scanlan’s owner.

On or about July 2, 2009, Barnett and others provided HUD with a written estimate of the cost of Shawnlee’s work (the “Final Framing Price”) that exceeded Shawnlee and UFP’s actual price for labor and materials by approximately $865,000.

Beginning in or about July 2009, and continuing until in or about January 2012, Barnett and Scanlan submitted contractor’s requisitions (the “Contractor Requisitions”) on forms provided by HUD to the Mortgagor, which the Mortgagor then sent to HUD.  These Contractor Requisitions included a certification by a representative of Scanlan that “all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.”  Each of these forms set forth the Final Framing Price as the actual cost of rough carpentry.  Each month, the Mortgagor disbursed HUD-insured funds on the basis of the Contractor Requisitions.  UFP set aside the “extra” from the Shawnlee/Scanlan contract in an accrual account falsely labeled as a rebate accrual.

In or about January 2010, LEES agreed with Barnett to pay Scanlan’s owner $200,000, which payment they understood would be guaranteed by part of Barnett’s interest in the approximately $865,000 difference between the contract price and the actual price for labor and materials provided by Shawnlee and UFP.  Barnett sought this payment, and LEES agreed to make this payment, as a partial payment of Barnett’s obligation to Scanlan’s owner.  LEES arranged for UFP to send a $200,000 check to a company controlled by Barnett that was not involved in the development of Vineyard Commons – which would then pass the money on to Scanlan’s owner.  On or about January 15, 2010, UFP issued a check for $200,000 to Barnett’s company and mailed it from Michigan to Barnett in Dutchess County, New York.

On or about January 20, 2010, Barnett sent to Scanlan’s owner in Massachusetts a $200,000 check that he drew on the account into which Barnett had deposited the check he received from UFP.

Later in 2010, Barnett sought a five-million-dollar loan from UFP.  Among other incentives, Barnett offered to surrender the remainder of his kickback to UFP, allowing UFP to take that money into its own profit.  With LEES’s encouragement, UFP issued the loan to Barnett.

The developer of Vineyard Commons defaulted on the loan after the project failed. HUD assumed the loan and sold the project, losing $28 million.

LEES, 62, of Lititz, Pennsylvania, is scheduled to be sentenced by Judge Karas on November 4, 2016.  LEES faces a maximum sentence of five years in prison on the conspiracy count, 20 years in prison on the mail fraud count, 30 years in prison for making false statements in a loan application, and 10 years in prison on the money laundering count.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes, as any sentencing of the defendant will be determined by the judge.

*              *              *

Mr. Bharara praised the investigative work of the HUD-OIG. 

 The prosecution is being handled by the Office's White Plains Division.  Assistant U.S. Attorneys Michael D. Maimin and Won S. Shin are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that SIDNEY PATTERSON, a/k/a “Duda Man” age 24,of New Orleans, was sentenced today after having previously been found guilty of violating the Racketeer Influenced Corrupt Organization Act “RICO,” as well as drug conspiracy, firearms conspiracy and murder charges.

U.S. District Judge Susie Morgan sentenced PATTERSON to serve the remainder of his life in prison.

In August 2015, PATTERSON, DELOYD JONES and BYRON JONES were convicted following an eight-day trial.  According to evidence presented at trial, the defendants were members of the “Ride or Die” gang, which they also referred to as “R.O.D.”  The Ride or Die gang was initially formed in or about 2007 and continued to exist through in or about 2013.  During the course of the federal investigation into the gang, agents learned that the defendants used a house, located at 1632 Mandeville Street, among other locations, as a base of operations to package, sell, and store narcotics, as well as store firearms.  The gang controlled the St. Roch neighborhood for its narcotics distribution activities through violence and threats of violence, to include murder, attempted murder, and assaults.  The jury found PATTERSON guilty of one murder and two attempted murders.

The defendants were three of twelve defendants charged with conspiring to distribute cocaine base and possess firearms in furtherance of their drug trafficking crimes.  DELOYD JONES and BYRON JONES were previously sentenced to life in prison.  Prior to trial, nine defendants pled guilty to various charges. ANDREALIE LEWIS was previously sentenced to 48 months incarceration; TYONE BURTON was previously sentenced to 121 months of incarceration; ERVIN SPOONER and PERRY WILSON were each previously sentenced to 108 months of incarceration; TRE CLEMENTS was previously sentenced to 96 months of incarceration; NYSON JONESwas previously sentenced to 87 months of incarceration; ROMALIS PARKER was previously sentenced to 70 months of incarceration; TYRONE BURTON and MORRIS SUMMERS were each previously sentenced to 60 months of incarceration.

 U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter.  As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.  Assistant United States Attorneys Nolan D. Paige and Marquest Meeks, along with former Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office, were in charge of the prosecution.

Greenbelt, Maryland – A federal jury today convicted Jorge Enrique Moreno-Aguilar, aka “Flaco,” and “Castigato,” age 22; Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 27, both of District Heights, Maryland; and Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias,” age 25, of Hyattsville, Maryland, on charges related to a racketeering enterprise known as La Mara Salvatrucha, or MS-13.

The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.

All three defendants were found guilty of conspiracy to participate in a racketeering enterprise and murder in aid of racketeering. Moreno-Aguilar and Ortiz-Orellana were each convicted of conspiracy to commit murder in aid of racketeering.  Ortiz-Orellana was also convicted of discharge of a firearm during a crime of violence, and murder resulting from the brandishing/discharge of a firearm during a crime of violence.  Perez-Chach was also convicted of unlawful possession of a firearm and ammunition by an alien, and unlawful possession of a firearm and ammunition by a felon.

MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.

According to evidence presented at the three-week trial, from at least 2009 through October 2014, MS-13 members planned and committed murders, attempted murders, assaults, and robberies in Prince George’s, Montgomery, and Frederick Counties. Gang members also extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes. Moreno-Aguilar and Ortiz-Orellana were members and associates of the MS-13 Sailors Locotes Salvatrucha Westside (SLSW) Clique and Perez-Chach was a member of the MS-13 Langley Park Salvatrucha (LPS) Clique.

In January 2013, defendants Moreno-Aguilar and Ortiz-Orellana targeted an individual associated with the rival 18th Street gang, obtaining photographs of the victim from Facebook and conspiring to murder him with other members of MS-13. On March 12, 2013, Moreno-Aguilar and Ortiz-Orellana went to Capitol Heights, Maryland and Ortiz-Orellana shot the victim multiple times outside his home, killing him.

In the early morning hours of February 23, 2013, Perez-Chach met a man in a restaurant whom he believed to be a member of MS-13 who had previously testified against MS-13 members in federal trials in Greenbelt, Maryland. In fact, the victim was not the witness from the previous MS-13 trials, according to trial evidence. Perez-Chach followed the victim to his home in Hyattsville, Maryland where he stabbed the victim to death while another member of MS-13 attacked the victim with a machete. During his arrest on May 20, 2013, Perez-Chach was found in illegal possession of a firearm and ammunition.

All three defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise, and a mandatory sentence of life in prison for murder in aid of racketeering. Moreno-Aguilar and Ortiz-Orellana face a maximum of 10 years imprisonment for conspiracy to commit murder in aid of racketeering.  Ortiz-Orellana also faces a mandatory sentence of life in prison for murder resulting from the use and discharge of a firearm during a crime of violence; and a minimum of ten years for discharging of a firearm during a crime of violence. Perez-Chach also faces a maximum sentence of 10 years in prison for being a felon in possession of firearm and ammunition, and 10 years for being an alien in possession of firearm or ammunition. Moreno-Aguilar was acquitted of brandishing/discharge of a firearm during a crime of violence, and murder resulting from the brandishing/discharge of a firearm during a crime of violence. 

U.S. District Judge Roger W. Titus has scheduled sentencing for all three defendants on October 12, 2016.

In addition to these convictions, 8 of the other 13 defendants charged in this investigation have pleaded guilty to their roles in the racketeering conspiracy. 

United States Attorney Rod J. Rosenstein commended HSI Baltimore, Prince George’s County and Montgomery County Police Departments, and Prince George’s and Montgomery Counties State’s Attorney’s Offices for their work in the investigation and proceedings.  Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan as well as Trial Attorneys Kevin Rosenberg and Catherine K. Dick with the Justice Department’s Organized Crime and Gang Section.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter.  Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Polite reiterated that the charges in the Seventh Superseding Indictment are merely charges, and that the guilt of the defendants must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter.  Assistant United States Attorneys Michael M. Simpson and Michael E. McMahon are in charge of the prosecution. 

          A 39- year-old Ferndale, Washington resident was arrested as he approached the U.S./Canadian border this morning as he sought to travel to British Columbia to have sexual contact with a person he believed to be a 12-year-old girl, announced U.S. Attorney Annette L. Hayes.  CHRISTOPHER DAVID JOHNSTON was arrested as he attempted to illegally enter Canada.  He made his initial appearance in U.S. District Court in Seattle today where he is charged by complaint with Attempted Enticement of a Minor.  He will remain in custody pending a detention hearing next week.

          According to the criminal complaint, in early May 2016, JOHNSTON began communicating with a person who responded to a personal ad he had placed on Craigslist.  The ad said JOHNSTON was seeking a “young lady to spoil.”  An undercover agent responded to the ad, indicating that she was not yet 13 years old.  Despite knowing that young age, JOHNSTON engaged in increasingly sexualized emails, texts and chats with the agent, ultimately arranging to meet the ‘child’ in Abbotsford, BC for sex.  He was arrested in the U.S. as he rode his bicycle as he approached the border near Sumas, Washington.  Via text message he told the ‘girl’ that he was planning on crossing the border illegally to meet her in Canada.

          Attempted enticement of a minor is punishable by a mandatory minimum ten years to life in prison.

            The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

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

          The case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).  The case is being prosecuted by Assistant United States Attorney Matthew Hampton.

SAN FRANCISCO – A federal jury convicted Michael Lindsay of traveling with intent to engage in illicit sexual conduct, engaging in illicit sexual conduct in foreign places, attempted witness tampering, and obstruction of justice announced United States Attorney Brian J. Stretch and Homeland Security Investigations (“HSI”) Special Agent in Charge Ryan Spradlin.

In its verdict, handed down late yesterday, the jury found that defendant traveled from San Francisco to Manila, the capital of the Republic of the Philippines, intending to have sex with a minor, and had sex with a minor while there.  The jury also found that defendant attempted to tamper with a witness and obstructed justice.  The guilty verdict followed a 4-day jury trial before the Honorable Charles R. Breyer, U.S. District Judge.

The evidence at trial established that Lindsay, 56, of San Jose, owned a condominium in the Manila area, and frequently traveled there.  During trips in May and August of 2012, Lindsay had sex with a 13-year-old girl.  Evidence at trial showed that defendant used instant messaging to communicate with the girl’s mother and arrange meetings for sex.  After meetings, defendant paid the girl’s mother.  In addition, defendant’s later email communications established that after a federal grand jury charged him, he engaged in attempted witness tampering and obstruction of justice.

On December 13, 2012, a grand jury returned an indictment charging defendant with traveling with intent to engage in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(b), and one count of engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c).  On February 9, 2016, a federal grand jury returned a second superseding indictment, adding charges of attempted witness tampering, in violation of 18 U.S.C. § 1512(b), and obstruction of justice, in violation of 18 U.S.C. § 1503.

The investigation began when the HSI received a report in the Philippines that defendant had sex with a minor while in the Philippines, and that he paid the minor’s mother.  HSI arrested defendant on November 8, 2012, at San Francisco International Airport, when he attempted to return to the Philippines for another visit.

Assistant U.S. Attorneys Laura Vartain and Katherine Wawryzniak are prosecuting the case with the assistance of Helen Yee, Theresa Benitez, and Patricia Mahoney.  This prosecution is the result of HSI investigations in both the Philippines and the United States.  

Defendant is currently in custody.  Defendant's sentencing hearing is scheduled for August 3, 2012, before Judge Breyer in San Francisco.  The maximum statutory penalty for each count in violation of 18 U.S.C. § 2423(b) and 18 U.S.C. § 2423(c) is 30 years, the maximum penalty for attempted witness tampering in violation of 18 U.S.C. § 1512(b) is 20 years, and the maximum penalty for obstruction of justice in violation of 18 U.S.C. § 1503 is 10 years.  In addition, the maximum fine is $250,000 for each count, plus restitution.  However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

ALBUQUERQUE – Raiff Harland Hayes, 25, of Albuquerque, N.M., pleaded guilty in federal court this morning to discharging a firearm during the robbery of a commercial business.  Under the terms of his plea agreement, Hayes will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.

Hayes was arrested on Aug. 18, 2015, on a criminal complaint charging him with violating the Hobbs Act and federal firearms laws.  According to the complaint, Hayes robbed ABQ Interlock, a business located at 2444 Menaul Blvd. NE in Albuquerque, on the afternoon of July 27, 2015.  According to surveillance video, Hayes pointed a firearm at two employees, fired a shot into the ceiling, placed a bag on the counter, and demanded that the employees put cash into his bag.  On July 28, 2015, one of the employees identified Hayes as the robber from a photo array.  Thereafter Hayes was arrested on state charges that were later dismissed in favor of federal prosecution.    

Hayes was indicted on Sept. 10, 2015, and charged with violating the Hobbs Act and discharging a firearm during a crime of violence on July 27, 2015, in Bernalillo County, N.M. 

During today’s proceedings, Hayes pled guilty to Count 2 of the indictment and admitted discharging a firearm during the armed robbery of a business engaged in interstate commerce.  Hayes remains in custody pending a sentencing hearing which has yet to be scheduled.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in Albuquerque and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office.  Assistant U.S. Attorney Norman Cairns is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution.  Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.  Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.

FARGO - US Attorney Christopher C. Myers announced that on May 23, 2016, Jade Shilo OldRock, 42, of Fort Totten, ND, was sentenced before US District Judge Ralph R. Erickson after a federal jury found him guilty on July 17, 2015, of Sexual Abuse of a Child and Commission of a Federal Sex Offense by a Registered Sex Offender. OldRock was sentenced to a total of 40 years on the two counts, plus 10 years of supervised release. OldRock was also ordered to pay a $200 special assessment to the Crime Victims’ Fund.

In or about May 2014, OldRock was temporarily residing at the residence of the victim, who had not yet attained the age of 12, when he and the victim’s father came home from a night of drinking. The victim testified at trial that she woke up when OldRock began performing a sexual act on her while she was asleep.

OldRock has a previous conviction for Sexual Abuse of a Minor in 1998. Because he committed this offense while he was a registered sex offender, a consecutive 10 years was imposed along with the underlying 30-year minimum mandatory sentence for the sexual abuse of a child under the age of 12.

This case was investigated by the Federal Bureau of Investigation (FBI) and the Bureau of Indian Affairs - Fort Totten Agency.

Assistant US Attorneys Janice Morley and Matt Greenley prosecuted this case.

BOSTON – An inmate at Old Colony Correctional Center in Bridgewater, Mass. was charged today with threatening to kill the President of the United States.

Alex Hernandez, 31, of Worcester, was charged in U.S. District Court in Boston with two counts of threatening to kill and inflict bodily harm upon the President of the United States. 

According to the complaint, in March 2015, agents learned that Hernandez told another inmate who was working as a cooperating witness in the investigation, that he was upset about the way his people were being treated, wanted to become a mujahedeen, had the ability to obtain weapons upon release from prison, and wanted to kill the President in a lone-wolf style attack.  Hernandez also allegedly expressed an interest in obtaining false travel documents so he could flee the country after his attack. 

Based on these allegations, agents decided to introduce Hernandez to an undercover agent posing as an embassy contact who could assist Hernandez with obtaining false travel documents.  In November 2015, at the direction of federal agents, the cooperating witness provided Hernandez with a mailing address for his purported embassy contact.  In actuality, the mailing address was that of an undercover law enforcement post office box.  From that point on, Hernandez allegedly wrote two letters to the embassy contact.  In the second letter, Hernandez stated, “I am writing to you now to ask that you come see me.  I am a brother in faith, a martyr; and as a martyr I wish to fulfill Allah’s wishes and not to live among infidels.  The mujahedeen movement is hard but pure.  I need your help and I hope to meet you in person.”

According to the complaint, on Dec. 22 2015 and Feb. 12, 2016, the undercover agent posing as the embassy contact met with Hernandez at Old Colony Correctional Center.  During the first meeting, Hernandez allegedly stated he wanted to attack, “the house with the big people there.”  The agent inquired whether Hernandez meant the White House and Hernandez said he did.  When asked for additional details about his plan, Hernandez explained, “there is always a head.  He’s the one who’s always in charge.  So if you attack the head, everything will go down a little bit.”  Hernandez went on to say that he wanted to learn how to shoot “like a sniper,” and that he had a contact in Florida that had a firearm ready for him.  He also stated that he was studying how to make explosives that could be placed around government buildings to “create chaos.”  During the second meeting with the undercover agent, Hernandez allegedly discussed the motivation for his planned attacks – telling the agent that his brothers are “fighting to uphold the laws and structure of the caliphate in the Middle East” and that “this government . . . is painting it like they are the bad guys[.]”  Hernandez also allegedly explained that he wanted to target the President because “he’s the one that gives the orders[.]”   

Court documents also allege that over the course of the investigation, searches of Hernandez’s jail cell revealed several items of concern such as a document listing the former U.S. Presidents and containing the handwritten notation “kill” underneath all the U.S. Presidents that have been assassinated while in office, and images of the September 11, 2001 attacks, Osama Bin Laden, and members of the Islamic State of Iraq and the Levant (ISIL) holding assault weapons and the ISIL flag.

The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service; and Thomas Turco, Commissioner of the Massachusetts Department of Correction, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.

BOSTON – Two men were sentenced today in U.S. District Court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 in new cell phones. 

David Hul, 34 of North Arlington, NJ, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 21 months in prison.  Judge Wolf also sentenced Curtis Peebles, 26 of Boston and New York, NY to 18 months in prison.  In February 2016, they pleaded guilty to wire fraud conspiracy.  Co-defendants Jimmy Phan and Lee Tran previously pleaded guilty.  Tran is scheduled to be sentenced on Sept. 12, 2016, and Phen’s hearing has yet to be scheduled.

Hul, Peebles and their co-conspirators gained access to T-Mobile customer records, including customer names, phone numbers, and information regarding those customers’ eligibility for free phone upgrades.

From at least January 2014 through October 17, 2014, Phan, Hul, Peebles, and other co-conspirators called T-Mobile customer service centers and, impersonating T-Mobile employees, used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts.  They then recruited “runners”, including Tran and others, to go into T-Mobile stores and impersonate the customers.  Phan, Hul, and Peebles used the dealer codes, among other methods, to cause either the runners’ real names or false identities to be added the customer accounts, sometimes using false names that closely matched the runners’ real names to reduce the likelihood of T-Mobile detecting the fraud.

Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere, presented identification in the real or assumed names, and acquired one or more new cell phones on accounts that were eligible for upgrades.  Runners then returned the new phones to Phan, Hul, Peebles, and others, who paid them a portion of the phone’s value.  Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones.

Phan, Hul, and others re-sold the cell phones to other coconspirators for distribution in the United States and abroad.  In total, Phan, Hul, Peebles, Tran, and other co-conspirators obtained at least $330,000 worth of new cell phones by defrauding T-Mobile.

Co-defendants Kevin Johnson, 24, of New York, NY, and Khoa Doan, 32 of Manchester, NH, are currently scheduled to stand trial on a date to be set by the Court.

United States Attorney Carmen M. Ortiz; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement today.  The U.S. Attorney’s Office acknowledges T-Mobile for its assistance with the investigation.  The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto of Ortiz’s Cybercrime Unit.