DALLAS— A local tax return preparer who managed a tax preparation business in Dallas, who admitted to filing fraudulent tax returns, was sentenced today, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Arslen Ramin Ayeze was sentenced by U.S. District Judge Ed Kinkeade to serve twelve months and one day in federal prison and ordered to pay $65,000 in restitution to the Internal Revenue Service (IRS). Ayeze pleaded guilty in July 2017 to one count of aiding and assisting in the preparation of a tax return and was remanded to custody following his guilty plea for a violation of his conditions of pretrial release.

According to the plea agreement factual resume filed in the case, from 2008 through 2010, Ayeze was a tax preparer doing business under the name of Universal Tax in Dallas, Texas. On January 20, 2010, Ayeze prepared and electronically filed with the IRS, a 2009 U.S. Individual Income Tax Return, Form 1040, on behalf of K.G. which was false and fraudulent. In preparing the tax return, Ayeze deceived the IRS by falsely including a business loss deduction in the amount of $10,575 for a purported sole proprietorship operated by K.G. Ayeze knew K.G. had not incurred the loss and was not entitled to claim the deduction on the tax return. The false deduction of $10,575 resulted in an actual tax loss to the United States in the approximate amount of $2,557.

The investigation was conducted by Internal Revenue Service Criminal Investigation.  Assistant U.S. Attorney Christopher Stokes prosecuted.

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PITTSBURGH- A former resident of Braddock, Pennsylvania, has been sentenced in federal court in Pittsburgh to 9 years in prison, followed by 3 years of supervised release, on his conviction of robbery and bank robbery, Acting United States Attorney Soo C. Song announced today.

United States District Judge Nora Barry Fischer imposed the sentence on Wallace Banks, age 35, formerly of Braddock, Pennsylvania.

According to information presented to the Court, on August 15, 2016, Banks robbed WesBanco Bank, located at 807 Middle Street, Pittsburgh, PA, of $880. In addition, on August 12, 2016, and again on August 16, 2016, Banks robbed Adult Mart, located at 346 Boulevard of the Allies, Pittsburgh, PA, obtaining a total of $408. Finally, on August 15, 2016, Banks robbed Huntington Bank, located at 650 Smithfield Street, Pittsburgh, PA, of $2,067. As part of his sentence, Banks is required to pay restitution to the victims of his crimes.

Assistant United States Attorneys Troy Rivetti and Rachael L. Dizard prosecuted this case on behalf of the government.

Acting United States Attorney Song commended the Federal Bureau of Investigation and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Wallace Banks.

PITTSBURGH – A resident of Butler, Pennsylvania, has been sentenced in federal court to six months of imprisonment followed by three years of supervised release on a conviction of embezzling from a federally insured bank, Acting United States Attorney Soo C. Song announced today.

United States District Judge Cathy Bissoon imposed the sentence on Keith A. Simpson, 60, of Butler, Pennsylvania.

According to information presented to the court, from around April 2014 until around April 2016, while serving as Chief Accounting Officer of West View Savings Bank, Simpson embezzled approximately $41,806.90 from his employer.

Assistant United States Attorneys David Lew and Lee J. Karl prosecuted this case on behalf of the government.

Acting United States Attorney Song commended the Federal Deposit Insurance Corporation, Office of Inspector General for the investigation leading to the successful prosecution of Simpson.

PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 60 months imprisonment, followed by five years supervised release, on a charge of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.

United States District Judge Nora Barry Fischer imposed the sentenced on Lance G. Gehring, age 48, of Neville Township, Pennsylvania.

According to information presented to the court, on March 10, 2016, Gehring knowingly possessed and knowingly accessed with intent to view images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.

Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.

Acting U.S. Attorney Soo C. Song commended the Federal Bureau of Investigation and the Allegheny County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Gehring.

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

PITTSBURGH - A federal jury of 12 citizens from throughout the Western District of Pennsylvania unanimously found Maurice “Reese” Frezzell guilty of selling heroin, Acting United States Attorney Soo C. Song announced today.

Maurice Frezzell, 34, of Monessen, Pennsylvania, was tried before United States District Judge Arthur J. Schwab in Pittsburgh, Pennsylvania.

According to Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor in the Violent Crime Section of the Office of the United States Attorney, the evidence presented at trial established that the Drug Enforcement Administration (DEA) has joined forces with many local and state law enforcement agencies in order to investigate allegations of heroin and opioid trafficking. These officers learned that Frezzell was selling heroin in the greater Washington County area and developed a Confidential Source to buy heroin directly from Frezzell on November 19, 2015.

After the verdict, Judge Schwab was informed that Frezzell has 15 separate convictions that include a prior federal drug dealing conviction and two other state drug dealing convictions. Frezzell’s criminal career began at the age of 12 with a sexual assault and has included two assaults on law enforcement and the illegal possession of a handgun with an obliterated serial number. Court records show that Frezzell is currently being supervised by the United States Probation Office after serving a previous federal prison sentence of 80 months and that Frezzell has additional drug charges pending as a result of a recent federal search warrant that revealed multiple different drugs in his residence.

Judge Schwab scheduled sentencing on this conviction for April 17, 2018 at 9:00 a.m. The law provides for a total sentence of 30 years in prison, a fine of up to $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based on the seriousness of the offense and the prior criminal history of the defendant.

Pending sentencing, the court ordered that Deputy United States Marshals return the defendant to a federal holding facility. The defendant has also been ordered to remain incarcerated pending a violation hearing for committing his new drug crimes while he was on federal supervision.

A group of law enforcement officers from the DEA, the Monessen Police Department, the Canonsburg Police Department, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, the Washington County Sheriff’s Office and the IRS conducted the investigation that led to the arrest and conviction of Frezzell.

SACRAMENTO, Calif. — Earlier today, a federal jury found two men guilty in a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, U.S. Attorney Phillip A. Talbert announced.

George B. Larsen, 56, formerly of San Rafael, was found guilty of conspiracy and four counts of bank fraud. Larry Todt, 65, formerly of Malibu, was found guilty of conspiracy and one count of bank fraud.

According to court documents, between April 22, 2010, and November 18, 2011, Larsen and Todt were members of a conspiracy that ran a “mortgage elimination program” purporting to help distressed homeowners avoid foreclosure.  The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.

As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators indicated to the homeowners these entities would offer protection against the banks.

Larsen and Todt each ran branches of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Larsen and Todt would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.

The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.

With title appearing to be clear, the conspirators caused the sale of the home, with the proceeds split between the co-conspirators and the homeowners.

In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.

Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations. On May 26, 2017, Michael Romano, of Benicia, pleaded guilty to conspiracy, and on July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations. They are scheduled to be sentenced on February 23, 2018.     Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are still awaiting trial. The charges against DiChiara and Castle are only allegations:  both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

In related cases, on September 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges before U.S. District Judge Garland E. Burrell, Jr. They are scheduled to be sentenced on February 9, 2018.

Larsen and Todt are scheduled to be sentenced by U.S. District Judge Garland E. Burrell, Jr. on March 16, 2018, at which time they each face a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

CHARLESTON, W.Va. – A Charleston man was sentenced today to a year and a day in federal prison for a gun charge, announced United States Attorney Carol Casto. Leon Mitchell, III, 25, previously pleaded guilty to possessing a firearm with an obliterated serial number.

In the early morning hours of March 8, 2016, a Charleston Police Department officer was patrolling in the area of Park Avenue and Simms Street in Charleston when he encountered Mitchell. The officer asked Mitchell if he had any weapons, and he replied that he did not. Shortly after this conversation, an unidentified woman ran screaming behind the officer. As the officer turned away to check on the sudden commotion, he heard the sound of metal hitting the ground. The officer looked back to the area where Mitchell was standing and saw what was later identified as a Sig Sauer, Model P220, .45 caliber semiautomatic handgun with the serial number scratched off. When the officer asked what was lying on the ground, Mitchell said it was his gun. In a search of Mitchell incident to arrest, the officer recovered approximately eight grams of marijuana and half a gram of heroin.

The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.

This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.

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SAN FRANCISCO – Liang Chen, Donald Olgado, Wei-Yung Hsu, and Robert Ewald were charged for their respective roles in an alleged scheme to steal trade secrets from a Bay Area semiconductor chip equipment manufacturer, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.  The charges were issued in an indictment handed down on November 30, 2017, by a federal grand jury.  

According to the indictment, the defendants were employed at a Silicon Valley-based semiconductor manufacturer as follows: Chen, 52, of Saratoga, Calif., was a corporate vice president and general manager of the alternative energy products division; Olgado, 54, of Palo Alto, was a managing director of engineering within the product business group; Hsu, 57, of San Jose, was a vice president and general manager within the semiconductor LED division; and Ewald, 60, of Aptos, was a director of the energy and environmental systems within the alternative energy products division. The indictment alleges that in September of 2012, while the defendants were still employed by the semiconductor equipment manufacturer, they conspired to steal their employer’s trade secrets and use them in a competing company to be based in the United States and the People’s Republic of China.

According to the indictment, the technology at issue was developed by the semiconductor equipment manufacturer through years of research and testing, and through millions of dollars in investment. The technology related to the high-volume manufacturing of semiconductor wafers to be used in lighting and electronic devices, such as flat screen televisions and smart phones.  The indictment explains that the production of the wafers is highly sophisticated and must occur under “clean room” conditions by a fully automated process controlled by computers.  The defendants allegedly downloaded information relating to this technology from their employer’s confidential internal engineering database, including over 16,000 drawings; shared plans in multiple emails describing their plans to use the technology in a new startup company; and attempted to recruit investors in order to fund the new startup which would operate in the United States and China.  In sum, each defendant was charged with one count of conspiracy to commit theft of trade secrets, in violation of 18 U.S.C. § 1832(a)(5), and eleven counts of possessing stolen trade secrets, in violation of 18 U.S.C. § 1832(a)(3) & 2.  

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  The maximum sentence for a violation of 18 U.S.C. § 1832(a)(5) is 10 years’ imprisonment and a $250,000 fine.  The maximum sentence for a violation of 18 U.S.C. §§ 1832(a)(3) & 2 is 10 years’ imprisonment and a $250,000 fine.  

Any sentence following conviction would 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.  

The defendants are scheduled to be arraigned on the indictment on December 15, 2017, before the Honorable Susan van Keulen, United States Magistrate Judge.  

Assistant United States Attorney Susan Knight is prosecuting this case with assistance from Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation. 
 

ALBANY, NEW YORK – Jose Alberto Villa Pilamunga, age 28, and a citizen of Ecuador, was sentenced today to time served (27 days in jail) for illegally re-entering the United States. 

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

As part of his guilty plea, Villa Pilamunga admitted that he is a citizen of Ecuador, and that he illegally returned to the United States after he was removed to Ecuador on July 15, 2011. 

On November 9, 2017, ICE Officers arrested Villa Pilamunga in Cobleskill, New York. 

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

This case was investigated by ICE-ERO and prosecuted by Assistant United States Attorney Edward P. Grogan

BOSTON – Two associates of the Genovese La Cosa Nostra (LCN) crime family pleaded guilty yesterday in federal court in Worcester to extortion-related charges.

Francesco Depergola, 61, of Springfield, Mass., and Gerald Daniele, 52, of Longmeadow, Mass., each pleaded guilty to federal charges related to extortion.  Depergola pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence and one count of interference with commerce by threats or violence.  Depergola also pleaded guilty to charges brought by the U.S. Attorney’s Office in the Southern District of New York of making an extortionate extension of credit. Daniele pleaded guilty to one count of using extortionate means to collect an extension of credit. U.S. District Court Judge Timothy S. Hillman scheduled their sentencings for March 9, 2018.

According to admissions in their plea agreements, Depergola, Daniele and co-defendants Ralph Santaniello, John Calabrese, and Richard Valentini were associates of the New York-based Genovese LCN crime family and engaged in various criminal activities in Springfield, Mass., including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses and the collection of unlawful debts. Depergola and Daniele admitted that they used violence, exploited their relationship with LCN, and implied threats of murder and physical violence to instill fear in their victims.

In addition, Depergola also admitted that in 2013, he, Santaniello, Calabrese, and Valentini attempted to extort money from a Springfield businessman.  Santaniello assaulted the businessman and threatened to cut off his head and bury his body if he did not comply. Over a period of four months, the businessman paid $20,000 to Santaniello, Calabrese, Depergola and Valentini to protect himself and his business.

Daniele further admitted that during a six-month period in 2015, he extended two extortionate and usurious loans to an individual, and then, along with Santaniello and Calabrese, threatened the individual if he did not make payments on the loans.

Santaniello and Calabrese previously pleaded guilty to extortion-related crimes. Their sentencings are scheduled respectively for Jan. 29, 2018, and Jan. 30, 2018.  Valentini pleaded not guilty. His trial is scheduled to start Dec. 11, 2017.

Each charge provides for a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $250,000 and forfeiture.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney William D. Weinreb; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Hampden County District Attorney Anthony Gulluni; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Kevin O’Regan, Chief of Weinreb’s Springfield Branch Office; Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section; and Katherine Wagner of Weinreb’s Springfield Branch Office are prosecuting the case.

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

Kevino Graham, 36, of Philadelphia was sentenced  yesterday to 100 years in federal prison for sex trafficking by the Honorable C. Darnell Jones, II, United States District Court Judge, announced United States Attorney Louis D. Lappen. In addition, Judge Jones imposed a fine of $1000, a $300 special assessment, lifetime supervised release, and restitution of $641,900.

According to court documents, the defendant ran a striptease club, known as “Club Passions,” and brothel, known as “Passionate Touch,” at a property he leased in the Cathedral Park section of Philadelphia.  Along with his three co-defendants, the defendant engaged in acts of force, threats, fraud and coercion to cause young women to engage in prostitution, including subjecting them to repeated acts of sadistic sexual torture. 

The defendant and co-defendant Raffael Robinson were convicted by a jury on February 5, 2016. Defendant Graham was convicted of two counts of sex trafficking by force and one count of attempted sex trafficking by force. Robinson was convicted of one count of sex trafficking by force, and awaits sentencing.  Co-defendant Brian Wright pled guilty and was previously sentenced to 262 months’ incarceration. Co-defendant Renato Teixeira pled guilty and was previously sentenced to 102 months’ incarceration.

The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department Special Victims’ Unit and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Morgan.

CINCINNATI – A federal grand jury has charged two individuals – Ciera Richter, 25, of Cincinnati, and Jason Fletcher, 40, of Franklin, Ohio – with charges related to the selling of a child and creating child pornography in an indictment returned here yesterday afternoon.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), announced the charges.

According to court documents, Fletcher was previously convicted by the state of Ohio of importuning a minor, among other crimes. Under the terms of his probation, he was not to possess pornography of any kind.

In May 2017, during a visit with his probation officer, the officer noticed Fletcher had two mobile devices and, after having Fletcher provide access to the devices, started to review the phones’ contents. The probation officer found pornography of a minor female on one of the phones and Fletcher was subsequently arrested.

Search of the phone revealed, among a collection of child pornography, child pornography videos made with the phone. Some of the videos on the phone involve Fletcher, Richter and a two-year-old.

In the videos, Richter helps hold, entertain and position the toddler, while Fletcher records himself sexually abusing the child.

According to the indictment and other court documents, Richter procured a two-year-old for the purpose of making the videos and intended to sell the videos. 

“The indictment alleges that Richter provided the toddler to Fletcher with the knowledge that as a consequence of the transfer, the two-year-old would be portrayed in child pornography,” U.S. Attorney Glassman said. “Offenses like those alleged here are among the most heinous, and most important, that we prosecute. We take seriously our duty and responsibility to keep children safe from those who would prey upon them.”

“Child pornography is the permanent record of a child being sexually exploited, and this victimization continues every time that image is transmitted, downloaded, shared or viewed,” said Steve Francis, Special Agent in Charge of HSI for Michigan and Ohio. “HSI special agents take special pride in their role of seeking justice on behalf of those who have been sexually exploited and victimized.”

Each defendant is charged with one count of conspiracy to produce child pornography and production of child pornography. Those crimes generally carry a potential sentence of 15 to 30 years in prison. Fletcher faces a potential range of 35 years to life in prison, because he has at least two prior state convictions for crimes involving children.

Richter is also charged with one count of selling a child, which is punishable by a range of 30 years to life in prison.

U.S. Attorney Glassman commended the investigation of this case by HSI and the Warren County Sheriff’s Department, as well as Assistant United States Attorney Megan Gaffney, who is prosecuting the case.

An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.

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CORPUS CHRISTI, Texas – A total of 12 Corpus Christi men are now in custody following enforcement actions resulting from Operation City Shield, a joint venture to identify violent offenders, stop gun violence and protect the community, announced Acting U.S. Attorney Abe Martinez.

Each defendant has been charged in separate and unrelated indictments for federal firearms and/or narcotics violations.

A federal grand jury charged Adam Flores, 36, Joe Parker, 30, Justin Moreno, 27, Jessie Zuniga, 36, Cruz Gonzalez, 29, Fred Corona, 24, Akeem Olajuwon Edwards, 30, Gavino Flores, 24, and Adam Rodriguez, 35, for being felons in possession of firearms and ammunition.

In a separate indictment, Andrew Hernandez, 34, is charged with knowingly and intentionally possessing with intent to distribute a synthetic cannabinoid mixture and a substance containing a detectable amount of a schedule I controlled substance analogue. Hernandez is also charged with using a firearm in furtherance of a drug trafficking crime and with being a felon in possession of a firearm and ammunition.

Zuniga, Parker, Andrew Hernandez, Moreno, Adam Flores and Corona were taken into custody yesterday and made their initial appearance before U.S. Magistrate Judge Jason Libby. At that time, they were ordered temporarily into custody pending detention hearings set for Friday, Dec.. 8, at 9:00 a.m. Edwards, Gavino Flores, Rodriguez and Gonzalez had already been in custody and are expected in federal court on the new charges in the near future.

Both Cody Hernandez, 27, and Timothy Allen, 38, were indicted previously for being felons in possession of a firearm and ammunition. Allen was also charged with possessing with intent distribute methamphetamine. Allen has already pleaded guilty to both of his charges and is pending sentencing in January 2018. Cody Hernandez’s case is still pending.

The felon in possession of firearms charge carries a maximum penalty of 10 years imprisonment and a possible $250,000 maximum fine. Those charged with possession with intent to distribute controlled substances face up to 20 years of imprisonment and a possible $1 million maximum fine. Hernandez and Allen further face up to five years in prison for using a firearm in furtherance of a drug trafficking crime which must be served consecutively to any other prison term imposed.

The Bureau of Alcohol, Tobacco, Firearms and Explosives; Corpus Christi Police Department; Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Marshals Service and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

Savannah, GA– Tracy Wayne Crosby, 42, of Waycross, Georgia, was indicted by a federal grand jury for his role in sex trafficking of a minor.  The indictment alleges that, from at least August 2017 to November 29, 2017, Crosby recruited, enticed, harbored, transported, provided, obtained, maintained, patronized, and solicited a minor to engage in commercial sex acts. 

Crosby is further alleged to have used facilities of interstate commerce, namely a cellular telephone and the internet, to persuade, induce, entice and coerce a minor to engage in prostitution and sexual activity, and to have possessed one or more images depicting a minor engaged in sexually explicit conduct.   

United States Attorney Bobby L. Christine said, “Those who solicit children online and pay to have sex with them are a horrible, driving force behind the dark underground of child sex trafficking.  By holding these people accountable for their actions, we can help end this scourge.  We continue to relentlessly work with our law enforcement partners to strike blows against this sick industry, to rescue children, and to put traffickers and customers behind bars.”

“Sexual exploitation steals the innocence of children, and the criminals who engage in these acts often inflict life-long trauma on their victims,” said Acting Special Agent in Charge Greg Wiest of the Atlanta field office of Homeland Security Investigation (“HSI”), a directorate of U.S. Immigrations and Customs Enforcement (“ICE”).  “As this case shows, ICE HSI is committed to investigating and seeking prosecution of child exploitation cases as one of the agency’s highest priorities.” 

The indictment against Crosby charges three counts:  sex trafficking of a minor, coercion and enticement of a minor to engage in sexual activity, and possession of child pornography.  If convicted, Crosby faces not less than 10 years’ imprisonment and up to life imprisonment. 

Mr. Christine emphasized that an indictment is only an accusation and is not evidence of guilt.  The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt. 

The indictment of Crosby arises out of an ongoing investigation led by ICE HSI.  Anyone who suspects instances of child sexual exploitation is encouraged to call 1-800-843-5678, which is operated by the National Center for Missing and Exploited Children in partnership with HSI, the Federal Bureau of Investigation, and other law enforcement agencies. 

Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States.  For any questions, please contact Appellate Chief R. Brian Tanner at (912) 652-4422.

WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Sean Moore, age 44, of New Castle, Del., was sentenced by U.S. District Court Judge Richard G. Andrews to 18 months of imprisonment, which was the sentence requested by the government. The sentencing came after Moore pleaded guilty to three counts of federal program theft on November 2, 2016.

According to court records and statements made in open court, between 2011 and 2015, while serving as the Director of Finance and Operations for the Family Foundations Academy, a charter school in New Castle, Del., Moore embezzled $161,871 from the school. Moore accomplished this embezzlement in a number of ways, to include opening an unauthorized credit card in the school’s name, buying iPads with school funds and then selling them online for cash, and skimming the school’s fundraising account. Moore used the embezzled money to buy personal items such as food, entertainment, electronics, gas, travel, shoes, jewelry, and hotels.

Prior to sentencing, Moore claimed that he was suffering from a “severe level of sexual addiction and shopping addiction,” which contributed to his commission of the offense.

Acting U.S. Attorney Weiss said, “Acting out of self-interest and greed, Mr. Moore stole money intended for the children he promised to serve. That is egregious. The sentence imposed today holds him accountable for cheating children, their families, and the taxpayers.”

“Mr. Moore knowingly and willfully abused his position of trust for personal gain and did so at the expense of the educational development of children. That is unacceptable,” said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Mid Atlantic Regional Office. “I’m proud of the work of OIG special agents and our law enforcement partners for holding Mr. Moore accountable for his criminal actions. The OIG will continue to aggressively pursue those who steal Federal education funds for their own purposes. America’s students and taxpayers deserve nothing less.”

This case is the result of an investigation conducted by the FBI, the U.S, Department of Education – Office of the Inspector General, and the Delaware Attorney General’s Office, with assistance from the Delaware Office of Auditor of Accounts. Assistant U.S. Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.

LAFAYETTE, La. –Acting U.S.Attorney Alexander C. Van Hook announced that a Houston man was sentenced Wednesday to five years in prison for possessing with intent to distribute cocaine after the drug was found in his car.

Isidro Badillo, 22, of Houston, Texas, pleaded guilty before U.S. District Judge Jay C. Zainey to one count of possession with intent to distribute controlled substances. He was also sentenced to five years of supervised release. According to the July 11, 2017 guilty plea, Lake Charles police officers stopped Badillo’s vehicle August 8, 2016 on Interstate 10. Police officers searched the vehicle and found 9.282 kilograms of powder cocaine in the trunk. Badillo knew of the cocaine and said he was driving to an unspecified location outside of New Orleans for delivery and later distribution.

Homeland Security Investigations and the Lake Charles Police Department conducted the investigation.  Assistant U.S. Attorney Dominic Rossetti prosecuted the case.

SHREVEPORT, La. – Acting U.S.Attorney Alexander C. Van Hook announced that a man from California was sentenced Wednesday to 12 years in prison for conspiring to transport methamphetamine.

Maquel L. Shelby, 37, of Hawthorne, Calif., was sentenced by U.S. District Judge Donald E. Walter on one count of conspiracy to possess with intent to distribute methamphetamine. He was also sentenced to three years of supervised release.  According to the August 30, 2017 guilty plea, a Louisiana State trooper conducted a traffic stop on a Dodge Durango Shelby was driving January 31, 2017 on Interstate 20 in Bossier Parish. Codefendant Bryanna Warren, 27, also of California, was riding in the car along with two children, ages 5 and 2. After being questioned, Shelby admitted there was a pistol in the vehicle’s glove compartment. As the trooper walked over to the vehicle to speak to Warren who was seated in the front passenger seat, she pulled out a loaded S&W .40 caliber pistol from a diaper bag and handed it to the trooper. She admitted to trying to hide the firearm after taking it from the glove compartment. The vehicle was also searched, and troopers found 2 pounds of methamphetamine in a backpack. After the arrest, Shelby admitted he had picked up the methamphetamine from Shreveport and was instructed to bring it to Monroe, La.

Warren pleaded guilty on May 25, 2017 to one count of possession of a firearm in furtherance of drug trafficking and was sentenced on October 19, 2017 to five years in prison and three years of supervised release.

The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.

ALBUQUERQUE – Joseph Vallejos, 25, of Roswell, N.M., was sentenced yesterday in federal court in Las Cruces, N.M., to 60 months in prison for his conviction on methamphetamine trafficking charges.  Vallejos will be on supervised release for four years after completing his prison sentence.

Vallejos and co-defendant Renee Rodriguez, 33, also of Roswell, were charged in a criminal complaint filed in Sept. 2015, with conspiracy, distribution of methamphetamine, and firearms offenses in Chaves County, N.M.  According to the criminal complaint, Vallejos and Rodriguez sold an aggregate of 157.7 grams of methamphetamine to undercover law enforcement officers during nine separate transactions between July 2015 and Sept. 2015.   The complaint further charged Rodriguez with brandishing a handgun during a methamphetamine transaction on July 8, 2015.

Vallejos and Rodriguez subsequently were charged in a nine-count indictment that was filed on Dec. 17, 2015.  The indictment charged Vallejos and Rodriguez with conspiring to distribute methamphetamine from July 1, 2015 through July 30, 2015.  It also charged Rodriguez with distributing methamphetamine on three occasions in July 2015, and Vallejos and Rodriguez with distributing methamphetamine on four occasions in July 2015.  Rodriguez also was charged with brandishing a firearm during a drug trafficking crime on July 8, 2015.  According to the indictment, Vallejos and Rodriguez committed the nine crimes in Chaves County.

On Aug. 3, 2016, Vallejos pled guilty to a conspiracy charge and four methamphetamine distribution charges.  In entering the guilty plea, Vallejos admitted that he was responsible for distributing approximately 52.6 grams of methamphetamine in Chaves County in July 2015.

On Aug. 12, 2016, Rodriguez pled guilty to two of the distribution of methamphetamine charges and to brandishing a firearm during a drug trafficking crime.  In entering the guilty plea, Rodriguez admitted that on July 8, 2015, she distributed approximately 15 grams of methamphetamine to an undercover law enforcement officer, and during that transaction she used and carried a firearm.  Rodriguez further admitted that she distributed approximately 11.9 grams of methamphetamine to an undercover law enforcement officer on July 30, 2015.  Rodriguez was sentenced on Oct. 31, 2017, to 63 months in prison followed by three years of supervised release.

This case was investigated by the Roswell office of the FBI and the New Mexico State Police.  Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.

Roanoke, VIRGINIA – A Mexican citizen, who had previously been deported from the United States on two occasions, pleaded guilty earlier this week to illegally reentering the United States, United States Attorney Rick A. Mountcastle announced.

Edi Jose Manuel, 37, a.k.a. “Edy Manuel,” “Edi Jose-Martinez,” “Edy Manuel Jose,” “Jose Manuel Ramos,” “Jose Manuel,” “Manuel Rams,” “Manuel Perez-Perez,” pleaded guilty this week to being a convicted felon who illegally reentered the United States after being previously deported.

According to evidence presented at Manuel’s guilty plea hearing, the defendant was convicted in 2004 in the Circuit Court of Franklin County for four counts of forging public documents. Manuel was sentenced to prison time and was deported following his prison sentence.

At an unknown time after being deported in 2008, Manuel illegally reentered the United States a second time. On or about August 31, 2017, while incarcerated in the Martinsville City Jail on a driving while intoxicated charge, a fingerprint card for the defendant was submitted and revealed the prior convictions for the defendant. Martinsville Jail officials contacted officials with Immigration and Customs Enforcement to alert them of the defendant’s presence in the jail. 

The investigation of the case was conducted by the United States Immigration and Customs Enforcement, Homeland Security Investigations.  Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.

AMARILLO— Following a three-day trial, a federal jury has convicted Jose Santillan, 25, of Amarillo, Texas, on one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of pure methamphetamine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

The conspiracy conviction carries a statutory penalty of at least ten years and not more than life in federal prison and a $10,000,000 fine.  Santillan is scheduled to be sentenced on March 26, 2018, by U.S. District Judge Sidney A. Fitzwater.

According to evidence presented at trial, on February 2, 2016, a Texas Department of Public Safety agent working in an undercover capacity arranged to purchase eight ounces of methamphetamine from Guadalupe Vargas-Mayorga.  Through surveillance and recorded telephone calls between the undercover agent and Vargas-Mayorga, law enforcement learned that Vargas-Mayorga obtained the eight ounces of methamphetamine from Jose Santillan and then delivered that methamphetamine to the undercover agent.  Laboratory results confirmed that Vargas-Mayorga and Santillan delivered 192 grams of pure methamphetamine to the undercover agent on February 2, 2016.  The evidence presented at trial also showed that Santillan had been supplying Vargas-Mayorga with methamphetamine for further distribution since approximately 2014. 

The Drug Enforcement Administration, Department of Homeland Security, Texas Department of Public Safety, Amarillo Police Department, Potter County Sheriff’s Office, and Randall County Sheriff’s Office investigated.  Assistant U.S. Attorneys Sean Taylor and Joshua Frausto and Deputy Criminal Chief Assistant U.S. Attorney Jeffrey Haag are prosecuting the case.

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