Two Martin County residents were indicted yesterday by a federal grand jury for producing child pornography. One was also charged with the distribution of child pornography.

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ken Mascara, Sheriff, St. Lucie County Sheriff's Office (SLCSO), and William D. Snyder, Sheriff, Martin County Sheriff's Office (MCSO), made the announcement. 

Joshua Lane Rogers, 34, and Richard William Lockley, 34, both of Stuart, were charged in a superseding indictment.  Both defendants have been detained pending trial as a risk of flight and danger to the community.

More specifically, the 10 count superseding indictment charges Rogers with five counts of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e); and five counts of distribution production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, 2252(a)(2) and (b)(1). Lockley is charged together with Rogers in one count of production of visual depictions of sexual exploitation of minors.  If convicted of the production or distribution charges, Rogers and Lockley face a mandatory minimum sentence of 15 years up to 30 years in prison, up to a lifetime of supervised release, and mandatory sex offender registration.

According to the criminal complaints filed in this matter, on September 3, 2017, SLCSO deputies responded to a “Missing Person Juvenile/ Runaway” call for a missing 16-year-old minor.   On September 27, 2017, Rogers was arrested when he was located at a Stuart Dunkin Donuts with the minor victim.  After meeting her online, Rogers offered the minor victim to come live with him.  A forensic analysis of Roger’s cellular smart phone revealed that Rogers had recorded sexually explicit activity with the minor victim on numerous occasions, using his cellular smartphone.  Detectives later discovered that Rogers distributed several of the images and videos to other individuals, via MMS text communications, and a social media networking program. Detectives found that Rogers and another male produced a video of sexually explicit conduct and activity with the minor victim.  MCSO detectives identified this male to be Lockley and arrested him on November 15, 2017.  Detectives executed a federal search warrant on Lockley’s cellular smartphone, locating videos of Rogers and Lockley engaged in sexually explicit activity with the victim, produced inside of Rogers’ Martin County residence.

Mr. Greenberg commended the investigative efforts of the FBI, SLCSO and the MCSO for their work on this case.  The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.

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

ALBANY, NEW YORK – Raul Meza, age 48, and a citizen of Mexico, was sentenced today to time served (113 days jail) for illegally re-entering the United States.

The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.

As part of his guilty plea, Meza admitted that on August 18, 2017, a Border Patrol agent found him walking on a road in Champlain, New York, 250 yards south of the border between the United States and Canada.  Meza had twice been removed from the United States to Mexico, first in 2001 and again in 2010.  Meza did not have authorization to return to the United States.

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

This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Douglas Collyer.

HOUSTON – Two U.S. defendants are in custody on allegations of conspiracy to commit sex trafficking by force, fraud and coercion, as well as visa fraud, announced Acting U.S. Attorney Abe Martinez. 

A grand jury in Houston returned an indictment against purported Houston bounty hunter Luis De Jesus Rodriguez aka Htown Hunter, 26, and his girlfriend Helen Leon Mesa, 28, yesterday, which was unsealed today upon their arrests. They are expected to make their initial appearances before U.S. Magistrate Judge Dena Palarmo on Monday, Dec. 11, 2017 at 10:00 a.m. The indictment remains sealed as to another charged but not as yet in custody.

According to the partially-unsealed indictment, this international criminal network targeted, recruited and exploited young women in Colombia and the United States. They were allegedly given false promises of a better life by working for Rodriguez and Mesa as dancers at a Houston nightclub. During the victims’ recruitment, the defendants also directed them to watch YouTube videos portraying Rodriguez as a bounty hunter, creating the false impression that he was a law enforcement officer, according to the allegations.

The indictment further alleges that once the victims arrived in the United States, Rodriguez and Mesa placed the victims in a strip club in Houston and forced them into signing debt bondage contracts, ranging from $13,200 to $25,000. Rodriguez and Mesa also allegedly required victims to make daily payments of approximately $250 towards their debt. The charges also allege that to compel the victims into paying this daily quota, Rodriguez and Mesa engaged in a coercive scheme which involved threats to harm the victims and their families, constant monitoring and surveillance of their locations and cellphones and the ultimately forcing them into engaging in commercial sex acts.

According to the indictment, the defendants also engaged in widespread visa fraud to facilitate the international transportation of the victims. The traffickers and their conspirators allegedly assisted the victims in obtaining fraudulent visas by creating fictitious background and occupations to increase the likelihood that their visa applications would be approved. They also coached the victims as to what to say during the visa application interviews, according to the indictment.

If convicted of sex trafficking, the defendants face a minimum of 15 years and up to life imprisonment. The visa fraud charges carry a maximum of 10 years of federal imprisonment.

The Department of State - Diplomatic Security Service, Houston Police Department Vice Division – Human Trafficking Unit and IRS - Criminal Investigation conducted the investigation with assistance from the FBI as part of the Human Trafficking Rescue Alliance (HTRA). The General Attorney’s Office of Colombia, Harris County Sheriff’s Office and Harris County District Attorney’s Office also assisted with the overall investigative effort.

Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.In 2016, the Human Trafficking Rescue Alliance received $1.5 million in federal funds from the Bureau of Justice Assistance and the Office for Victims of Crime through the Enhanced Collaborative Model Anti-Human Trafficking Task Force Program, which provides funding to investigate and prosecute cases of human trafficking and provide services to victims.

Assistant U.S. Attorneys Eun Kate Suh and Zahra Jivani Fenelon are prosecuting the case with assistance from the Department of Justice Civil Rights Division, including the Human Trafficking Prosecution Unit.

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

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

Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced former Florida House of Representatives member Dwayne L. Taylor (50, Daytona Beach) to 13 months in federal prison for wire fraud. The Court also ordered him to pay $62,834.55 in restitution and to serve 18 months of supervised release.

On August 31, 2017, a federal jury found Taylor guilty of nine counts of wire fraud. 

According to evidence presented at trial, during Taylor’s 2012 and 2014 re-election campaigns, he falsely reported thousands of dollars of expenditures to the State of Florida in order to conceal his misappropriation of over $60,000 in campaign funds through a series of unreported cash withdrawals, checks written to himself, and checks written to petty cash. Taylor then used the misappropriated funds for personal expenditures unrelated to his re-election campaigns. 

According to Florida law, all campaign contributions and expenditures must be reported to the State of Florida, and neither a candidate nor the spouse of any candidate may use funds deposited in a campaign account to defray normal living expenses for the candidate or the candidate’s family, other than expenses actually incurred for transportation, meals, and lodging during travel in the course of the campaign.

"Corrupt public officials undermine the integrity of our government and violate the public’s trust," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division.  "This case is another example of the FBI's commitment to rooting out public corruption for the people of Florida."

 This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Embry J. Kidd and Roger B. Handberg.

KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.

Andre B. Hill, 45, of Kansas City, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole. Hill was sentenced as an armed career criminal. The court ordered Hill’s sentence be served consecutively to his sentence in an unrelated state conviction for drug trafficking.

On Aug. 3, 2017, Hill pleaded guilty to being a felon in possession of a firearm. He admitted that he was in possession of a loaded EAA .38-caliber revolver on June 16, 2016.

Kansas City police officers were dispatched to suspicious prostitution activity in the area of East 44th Street and Troost Avenue on June 16, 2016. They encountered Hill and placed him under arrest on two outstanding warrants. After he was placed under arrest, an officer saw the revolver laying in the grass. Three glass pipes that later tested positive for cocaine were found in Hill’s possession at the time of his arrest.

Under federal law, it is illegal or anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hill has two prior felony convictions for sale of a controlled substance, two prior felony convictions for possession of a controlled substance, and prior felony convictions for distributing or manufacturing a controlled substance, tampering and insufficient funds checks.
 
This case was prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Kansas City, Mo., Police Department.
 

Orlando, Florida – U.S. District Judge Carlos E. Mendozahas sentenced James Arthur Van Meerten (35, Palm Bay) to 17 years and 6 months in federal prison for conspiracy to distribute methamphetamine and for possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on September 7, 2017.

According to court documents, from February 2016 through his arrest on April 27, 2017, Van Meerten entered into an agreement with several individuals whereby he would purchase large amounts of crystal methamphetamine from an out-of-state supplier and then resell the drugs. Some of the individuals who purchased the drugs resold them to their own customers for profit. As part of this investigation, law enforcement seized more than 1.8 kilograms of crystal methamphetamine containing an average purity of 99.5%. At the time of his arrest, Van Meerten possessed a firearm while attempting to distribute a large amount of the drugs.

This case was investigated by the Drug Enforcement Administration and the Palm Bay Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.

WHEELING, WEST VIRGINIA – Four people from Florida are scheduled to appear next week in court after being indicted by a federal grand jury in Wheeling on December 5, 2017, on fraud charges, United States Attorney Bill Powell announced.

Each is charged with one count of “Conspiracy to Commit Access Device Fraud,” and several other fraud-related charges. They are accused of a conspiracy spanning four states that involved using skimming devices at gas pumps, using technology to upload the account information, and creating fraudulent cards with said accounts to make unauthorized transactions at different businesses in West Virginia and elsewhere.  Those appearing in court and named in the indictment are:

•    Meylan Montalvo Gomez, of Hialeah, Florida, age 27
•    Yarai Fuentes Quinones, of Hialeah, Florida, age 26
•    Naudi Reyes Fernandez, of Miami, Florida, age 36
•    Yosan Pons Sosa, of Miami, Florida, age 28

Lazaro Serrano Diaz , of Miami, Florida, age 27, is also named in the indictment, and a warrant has been issued for his arrest.

The crimes are alleged to have occurred from August 28, 2017 to December 5, 2017 in Monongalia County, West Virginia and elsewhere. The United States is also seeking forfeiture of the following:

• approximately $41,140.00 in United States Currency
• approximately $28,498.00 worth of Western Union money orders
• approximately $10,300.00 worth of MoneyGram money orders
• approximately $29,350.00 in funds previously contained on approximately sixty (60) gift cards seized in Huntington, West Virginia on or about October 23, 2017
• approximately $1,510.73 remaining in TD Bank Account

Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Federal Bureau of Investigation, United States Secret Service, West Virginia State Police and the Monongalia County Sheriff’s Office are investigating. 
 
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

John H. Durham, United States Attorney for the District of Connecticut, announced that FRANKLIN OMAR RODRIGUEZ, 36, a citizen of Honduras last residing in Norwalk, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of reentry of a removed alien.

According to court documents and statements made in court, in December 2005, RODRIGUEZ was convicted in Carroll County, Georgia, of statutory rape and was sentenced to time served and three years of probation.  In February 2009, RODRIGUEZ was convicted in Carroll County, Georgia, of failure to register as a sex offender and two counts of false identification documents and was sentenced to 10 years of incarceration, execution suspended after two years, followed by eight years of probation.  In February 2011, RODRIGUEZ was deported from the U.S. to Honduras.

RODRIGUEZ illegally reentered the U.S. and, on January 13, 2017, was arrested by Stamford Police for the sale of illegal drugs, possession of narcotics with intent to sell and interfering/resisting arrest.

Judge Shea scheduled sentencing for March 6, 2018, at which time RODRIGUEZ faces a maximum term of imprisonment of 20 years.

The state case is pending in Stamford Superior Court.

This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.  The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.

KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Lathrop, Mo., man has pleaded guilty in federal court to a $1.7 million fraud scheme related to the sale of his business.

Todd Edwin Rood, 46, of Lathrop, waived his right to a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner on Wednesday, Dec. 6, 2017, to a federal information that charges him with one count of loan application fraud.

Rood is the former owner of Rood Machine & Engineering (RME). By pleading guilty, Rood admitted that he made false statements to the purchaser’s bank about his assets and liabilities during the sale of his business.

Rood falsified documents in 2015 and 2016 outlining the assets and liabilities of his business in a scheme to defraud RME’s buyers and their financial institution. The total loss amount resulting from Rood’s criminal conduct is $1,347,608.

The purchasers agreed to pay $1,975,208 for Rood’s business and borrowed $1,744,000 from United Community Bank (based in Georgia). But for Rood’s false statements, the bank would not have made a $1,744,000 loan because RME’s value, including its business value and real estate, did not support that loan amount. By altering his bookkeeping, Rood inflated his income by approximately $583,827 prior to the sale.

The court will determine restitution at Rood’s sentencing hearing or at a restitution hearing. Under the terms of his plea agreement, Rood must pay the purchasers $262,000 in restitution for their closing costs and cash infusion into RME, which they made in reliance on the information underlying Rood’s false certification to which he is pleading guilty.
 
Under federal statutes, Rood is subject to a sentence of up to 30 years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the FBI.
 

In Waco today, a federal judge sentenced a Dripping Springs man to 18 months in federal prison for making threats to kill individuals on Fort Hood in back in February announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, United States District Judge Robert Pitman ordered that 29-year-old Thomas Anthony Chestnut, Jr., be placed on supervised release for a period of three years after completing his prison term.  Chestnut has remained in federal custody since being arrested by FBI agents on February 24, 2017.

On September 19, 2017, jurors found Chestnut guilty of one count of threatening to assault or murder a uniformed service member and one count of interstate communications with threat to injure.  Testimony during the two-day trial revealed that on February 22, 2017, Chestnut made verbal threats when he called and spoke with a sergeant at the US Army 1st Calvary Division at Fort Hood.  Chestnut threatened to go to Fort Hood, kill the sergeant, take hostages, start a mass killing spree and then kill himself if he was not allowed to speak with someone of rank.  Chestnut then spoke with a major and advised that he was a former soldier wrongly accused of a crime and eventually released from prison in 2016.  Chestnut further advised if he was unable to speak with a U.S. Army III Corps Commander or a Sergeant Major regarding back pay, or did not receive the money he believed was owed to him, that he planned to shoot soldiers on Fort Hood.

The FBI together with the U.S. Army Military Police Investigations at Fort Hood and the Hays County Sheriff’s Office conducted this investigation.   Special Assistant U.S. Attorney/Active Duty U.S. Army Major Benjamin Hogan and Assistant U.S. Attorney Chris Blanton prosecuted this case on behalf of the government.

In Midland today, 47-year-old bookkeeper Mary Elisa “Lisa” Salazar pleaded guilty to stealing over $1.5 million from her employer, an oil well leasing company in Midland, announced United States Attorney Richard L. Durbin, Jr.; Internal Revenue Service-Criminal Investigation Acting Special Agent in Charge Troy Caldron; and, Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division.

Appearing before U.S. Magistrate Judge David Counts, Salazar pleaded guilty to a two-count Information charging her with one count of wire fraud and one count of making and filing a false Income Tax return. 

By pleading guilty, Salazar admitted that from 2011 to 2016, she embezzled funds from the business by writing unauthorized company checks to herself.  She further admitted to concealing her actions by either falsifying bank reconciliation statements or omitting the checks in the internal accounting system.  The estimated loss to the company because of her illegal scheme is $1,588,518.

Salazar also admitted to filing false Income Tax returns for calendar years 2011 to 2016 in which she substantially understated her total income, adjusted gross income and taxable income.  According to court records, Salazar owes the Internal Revenue Service an estimated $540,000 in unpaid taxes due to her underreporting.

Salazar remains on bond pending sentencing.  No sentencing date has been scheduled.  Salazar faces up to 20 years in federal prison for the wire fraud charge and up to three years in federal prison for the tax charge.

The Internal Revenue Service-Criminal Investigation and Federal Bureau of Investigation conducted this investigation. 

SACRAMENTO, Calif. — Earnest Marshall Badman, 31, of Marysville, was sentenced today to two years in prison by U.S. District Judge Garland E. Burrell Jr. for aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail and Identity theft crimes committed against the public.”

According to court documents, in January and February of 2016, Badman executed a scheme to defraud banks by using credit cards and checks and identification documents of others obtained from stolen mail and burglaries.

On February 9, 2016, Badman was arrested after a high speed chase in a stolen vehicle in Colusa County. The vehicle pursuit ended in the backyard of an Arbuckle home. Badman attempted to flee on foot but was arrested. At the time of his arrest, Badman possessed burglary tools, credit cards in the names of others, and stolen mail. He possessed the mail and identity information of over 40 victims and over 15 different credit cards for fraudulent use.

This case was the product of an investigation of the U.S. Postal Inspection Service with assistance from the Yuba County Sheriff's Office, California Highway Patrol, Butte County Sheriff’s Office, and the Yuba County Probation Department. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.

            WASHINGTON –Twelve people have been on indicted on federal charges stemming from an ongoing investigation into a drug trafficking organization that distributed large amounts of heroin, methamphetamine, and cocaine in the Washington, D.C. metropolitan area.  To date, more than 300 grams of crack cocaine and 200 grams of methamphetamine have been seized as a result of the investigation, along with seven firearms.

            The charges are contained in two indictments unsealed today in the U.S. District Court for the District of Columbia. The charges were announced by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            All 12 defendants are charged with taking part in a conspiracy to distribute and possess with intent to distribute drugs. The indictment also includes a forfeiture count against all of those now charged in the investigation, which seeks all proceeds from the crimes.  Nine defendants were arrested yesterday, and three were already in custody.

            The defendants began making their first court appearances today. They include 11 men and one woman from the District of Columbia, Maryland, and Virginia.

            “This investigation demonstrates our unwavering determination to disrupt and dismantle drug trafficking organizations that operate in the District of Columbia,” said U.S. Attorney Liu. “Working with our law enforcement partners, we were able to remove dangerous drugs and guns from the streets and make our neighborhoods safer.”

            “The FBI works tirelessly with its partners to protect our communities and to hold accountable those who threaten our safety,” said Assistant Director in Charge Vale. “This week's arrests demonstrate our continuous efforts to dismantle drug trafficking organizations.”

            “The District of Columbia is a safer place today as a result of the hard work and collaboration between the agencies involved,” said Chief Newsham. "We will continue to seize illegal drugs found in our city and ensure the individuals involved in narcotics distribution are held accountable.”  

            The charges arose from a long-term investigation into people suspected of acting as wholesale distributors of heroin and cocaine in the Washington, D.C., metropolitan area. The investigation determined that from at least January 2016 through December 2017, the defendants maintained a drug trafficking organization that supplied distribution amounts of crack cocaine, methamphetamine, and heroin to drug dealers in the District of Columbia, Maryland and Virginia. Much of the activity took place in the Birney Place area of Southeast Washington. In particular, the investigation showed that several of the defendants regularly sold crack cocaine and heroin in the 2600 block of Birney Place SE.

            The prosecution grew out of the efforts of the FBI/MPD Safe Streets Task Force, a multi-agency team that conducts comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The prosecution was sponsored and supported by the federal Organized Crime Drug Enforcement Task Force (OCDETF).

            The U.S. Attorney’s Office is working with MPD, the FBI, and other law enforcement partners on a Justice Department initiative called Project Safe Neighborhoods that is expected to generate additional cases targeting drug organizations. Under Project Safe Neighborhoods, the U.S. Attorney’s Office is committed to a coordinated law enforcement approach and identifying and addressing the most violent locations in the District of Columbia and the offenders.

            An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.

            In announcing the charges, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the Safe Streets Task Force, including the FBI, MPD, U.S. Park Police, Prince George's County, Md. Police, and the U.S. Bureau of Alcohol, Tobacco, and Firearms (ATF). They also expressed appreciation for the assistance provided by the U.S. Attorney’s Office for the District of Maryland. Finally they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Nihar Mohanty and Kevin Rosenberg, as well as Assistant U.S. Attorney Thomas Swanton, who assisted with the forfeiture aspects of the investigation.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that former Hoboken, New Jersey, City Council president and attorney CHRISTOPHER CAMPOS was sentenced today in Manhattan federal court to 30 months in prison for fraudulently obtaining millions of dollars in car loans.  CAMPOS used approximately 20 straw buyers to purchase more than 200 new automobiles based on false representations that, among other things, the straw buyers would use the cars for their personal use when, in fact, CAMPOS and his co-conspirators obtained the vehicles in order to lease them as livery cabs.  After a week-long trial, CAMPOS was found guilty on June 22, 2017, of bank and wire fraud and conspiracy to commit bank and wire fraud.  U.S. District Judge Valerie E. Caproni presided over that trial and imposed today’s sentence.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “Christopher Campos, an attorney and former Hoboken City Council president, defrauded lenders out of millions of dollars.  He put up straw buyers to obtain loans for ‘personal use’ cars that in fact comprised a fleet of over 200 vehicles leased to livery drivers.  Campos has now received the significant sentence his crimes merit.”

According to the allegations contained in the Complaint, Indictment, and the evidence presented in Court during the trial:

Between approximately October 2012 and September 2013, CAMPOS and his co-conspirator Julio Alvarez, among others, orchestrated a scheme to fraudulently obtain new automobiles that they intended to lease to livery cab drivers.  In order to secure financing in connection with the purchase of these new cars, CAMPOS and other co-conspirators enlisted and aided individuals with good credit histories (“straw buyers”) to submit fraudulent car loan applications to numerous lenders.  In order to obtain the new vehicles, CAMPOS and other co-conspirators sent straw buyers to several car dealerships located throughout the New York City area, where dealership employees helped straw buyers submit fraudulent loan applications. 

The auto loan applications submitted by the straw buyers falsely represented that the vehicles would be used for the buyers’ personal use, rather than as part of the defendants’ leasing business.  In addition, in many cases, the car loan applications misrepresented personal information about the straw buyers, including their incomes and assets.  CAMPOS also caused financing applications to be sent to multiple financial institutions at the same time so that the lenders would not know that the straw buyers were incurring obligations to other lenders in connection with the purchase of multiple new automobiles.

In total, the scheme carried out by CAMPOS, Alvarez, and others involved approximately 20 straw buyers, the purchase of approximately 200 new vehicles, and ultimately resulted in lenders disbursing over $7,000,000 in fraudulently obtained car loans.  Most of those loans ultimately went into default.

*                *                *

Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation.  Mr. Kim also thanked theNational Insurance Crime Bureau (“NICB”), the New York Automobile Insurance Plan (“NYAIP”), and the New York State Department of Motor Vehicles for their substantial assistance in the investigation and trial.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys Dina McLeod, Sagar K. Ravi, and Niketh Velamoor are in charge of the prosecution.

BOSTON – A Milton man and a Connecticut woman were arrested today and charged in federal court in Boston with federal sex trafficking crimes.  

Duhamel Cassagnol, 30, of Milton, was charged in an indictment with committing sex trafficking by force, fraud, or coercion; engaging in a conspiracy to commit sex trafficking; and transporting an individual for prostitution. Geneiva Whaley, 23, of Connecticut, was charged in a criminal complaint with transporting an individual for prostitution. The defendants were detained following an initial appearance in federal court in Boston this afternoon.

The indictment charging Cassagnol alleges that, between approximately July 2014 and February 2016, he conspired to recruit and transport victims across state lines for the purpose of engaging in commercial sex acts, knowing that the women would be induced to engage in those acts through force, fraud, or coercion. The indictment also charges Cassagnol with transporting the victims between states with the intent that they engage in prostitution.

The complaint charging Whaley alleges that, in October 2015, she knowingly transported one of Cassagnol’s victims from Massachusetts to Connecticut with the intent that the victim would engage in prostitution. Specifically, Whaley allegedly recruited the victim, who had just been released from a detox facility, and worked with Cassagnol to keep the victim in various motels or hotels in Connecticut, which were rented in Whaley’s name. While at the motels, Whaley assisted in prostituting the victim. Cassagnol and Whaley also allegedly supplied the victim with drugs while she stayed at the motels.

The charge of sex trafficking through force, fraud, or coercion provides for a sentence of no less than 15 years and up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. For first-time offenders, the charge of transporting an individual for prostitution provides for a sentence of up to 10 years in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistance was provided by the Massachusetts State Police, Lexington and Needham Police Departments, and Vernon (Connecticut) Police Department. Assistant U.S. Attorney Brian A. Pérez-Daple of Weinreb’s Civil Rights Enforcement Team is prosecuting the case.

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

BOSTON – Seven Romanian nationals pleaded guilty yesterday in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina. 

Constantin Denis Hornea, 23; Maria Lazar, 19; Ludemis Hornea, 20; Claudiu Florea, 25; Denisa Bonculescu, 27; and Anamaria Margel, 23, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly known as RICO conspiracy, and conspiracy to use counterfeit access devices. Constantin Hornea, Lazar, and Ludemis Hornea also pleaded guilty to aggravated identity theft and money laundering conspiracy; Constantin and Ludemis Hornea also pleaded guilty to possession of device making equipment; and Florea also pleaded guilty to money laundering conspiracy. Ion Trifu, 25, pleaded guilty to conspiracy to use counterfeit access devices and money laundering conspiracy.  U.S. District Court Judge William G. Young scheduled sentencing for March 15, 2018.

In May 2017, the defendants were indicted along with five others whose whereabouts remain unknown.

The defendants, except for Trifu, were members of the Hornea Crew (“Crew”), led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts. Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts.  In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C.  The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.

Members of the Hornea Crew and Trifu transferred money throughout the United States and to Romania and the People’s Republic of China.  Some of those transfers were for the purchase of skimming devices and related components from abroad.

The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and fine of $250,000. The charge of conspiracy to use counterfeit access devices provides for a sentence of no greater than five years in prison, three years of supervised release, and fine of $250,000. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison.  The charge of possession of device making equipment provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of $250,000.  The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years or supervised, and a fine of $500,000, or twice the value of the property involved in the crime, whichever is greater.  The defendants will face deportation proceedings upon completion of their sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today.  Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations (IRS-CI) in Boston; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut Financial Crimes Task Force, consisting of the U.S. Secret Service, U.S. Postal Service, IRS-CI, Connecticut State Police, and Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties.  Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit is prosecuting the case.

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

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that, on Dec. 6, 2017, a federal jury in Juneau convicted Zerisenay Gebregiorgis, 35, a Washington resident, of conspiracy to distribute and to possess with the intent to distribute heroin and methamphetamine.

The evidence presented at trial showed that, between June 1, 2016, and August 16, 2016, Gebregiorgis and others planned to distribute large quantities of heroin and methamphetamine in the communities of Ketchikan and Sitka.  Gebregiorgis supplied drugs to drug couriers, who carried the drugs inside their bodies to other co-conspirators in Ketchikan and Sitka for subsequent distribution.  Drug proceeds were then given to the couriers to be carried back to Seattle to be delivered to the defendant or deposited into bank accounts controlled by Gebregiorgis. 

According to evidence presented at trial, Gebregiorgis trafficked at least 100 grams or more of heroin and 50 grams or less of methamphetamine.  Gebregiorgis directed every aspect of the conspiracy, to include directing the amounts of drugs sent to Alaska, the couriers who carried the drugs, the travel for those couriers, and delivery of drug proceeds of the conspiracy back to him via couriers and bank accounts deposits.

Sentencing is scheduled for March 5, 2018, at 11:00 a.m. in Juneau.  The law provides for a mandatory minimum sentence of five years up to a maximum of 40 years in prison, a fine of up to $5 million dollars, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the criminal history, if any, of the defendant.  The defendant is detained pending sentencing.

Mr. Schroder commends the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the members of the Southeast Alaska Cities Against Drugs Taskforce (SEACAD), specifically the members from the Alaska State Troopers (AST), Ketchikan Police Department (KPD), and the Sitka Police Department (SPD) for the investigation of this case.

PITTSBURGH – Brad Lanese, 52, of Pittsburgh, Pennsylvania, has been arrested and charged in a criminal complaint with one count of Using Interstate Commerce Facilities with the Intent to Commit a Murder for Hire, Acting United States Attorney Soo C. Song announced today.

According to the criminal complaint, unsealed yesterday, defendant Brad Lanese and two associates – identified as C.B and his wife, L.D. - ran a large marijuana grow operation in Northern California. When Lanese and L.D. began having difficulties, Lanese was asked to leave the property. Back in Pittsburgh, Lanese contacted a confidential source for the Drug Enforcement Agency and enlisted that source to travel with him to Northern California in order to rob C.B. and L.D. of the profits from the marijuana grow operation.

On October 31, 2017, Lanese and the confidential source travelled to California. The next day, Lanese and the confidential source met with “Deeds,” a DEA operative acting in an undercover capacity who was to provide firearms and logistical support for the robbery. Lanese told “Deeds” that he no longer wanted to rob C.B., but wanted “Deeds” to murder someone instead. Lanese then hired “Deeds” to kill L.D. by suggesting that he inject L.D. with a fatal dose of heroin/fentanyl mix in the marijuana fields, and push L.D.’s body and car over the cliffs and into the Pacific Ocean. Lanese told “Deeds” that once L.D. was dead, he would be able to return to the marijuana grow operation and pay “Deeds” for the murder.

On November 14, 2017, back in Pittsburgh, Lanese confirmed to “Deeds” that he wanted L.D. to be murdered and agreed to pay $30,000 for the murder.

The defendant appeared on December 7 in federal court before U.S. Magistrate Judge Maureen P. Kelly. The government is seeking detention of the defendant pending trial. Lanese’s detention hearing is scheduled for December 12, 2017, at 10 a.m. in front of Judge Kelly.

The law provides for a maximum sentence of 10 years in prison and of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Timothy M. Lanni is prosecuting this case. The Drug Enforcement Agency - Pittsburgh Division, Bureau of Alcohol, Tobacco, Firearms and Explosives - Pittsburgh Division, and the Pittsburgh Bureau of Police, with assistance from the Drug Enforcement Agency - Santa Rosa, California Division, conducted the investigation that led to the complaint against Lanese. The United States Attorney’s Office for the Northern District of California is also assisting in the prosecution of this case.

A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.

Larry Westby swindled friends and acquaintances out of nearly $1 million

PRESS RELEASE

Indianapolis - United States Attorney Josh J. Minkler announced today the sentencing of a former Indiana man who stole nearly one million dollars from unsuspecting investors. Larry M. Westby, 65, currently residing in Vanderbilt, Michigan, was sentenced to 90 months (7.5 years) imprisonment by Chief U.S. District Judge Jane Magnus-Stinson after pleading guilty to wire fraud, securities fraud and fraud in the offer or sale of securities.

“Perpetrators of fraud crimes not only jeopardize their victims’ financial security, but they also rob their victims of the trust they once had in their own judgment and in others,” said Minkler. “When a person or business intentionally deceives Indiana investors with promises of financial benefits that do not exist, were never intended to be provided, or were misrepresented, they will be prosecuted by this office to the fullest extent of the law.”  

Westby was a licensed respiratory therapist and president of LMW, Inc., a company purported to be selling respiratory therapy protocols to doctors. The protocols allowed doctors to perform treatments inside their own offices, rather than in a hospital.

In January 2010, Westby began using the LMW website to communicate with current and potential LMW investors indicating he was exploring selling his company for a substantial profit. In these communications, Westby made false statements about the nature of LMW, its financial condition, and the risk and status of investments in LMW.  For example, Westby told potential investors that LMW was about to be sold for $36.5 million to a company called Global Spot in an effort to convince investors to buy LMW common stock.  Unbeknownst to investors, Global Spot was a non-existent, sham entity.  Westby also concealed from his investors that he had not registered LMW with the Indiana Secretary of State as a company properly registered to engage in the issuing of stock certificates. Further Westby did not tell investors that he had failed to properly register LMW common stock certificates with the Secretary of State.

  Through these false communications, Westby took in more than $985,000 from his investors, then used the funds to purchase two vehicles, repay a personal loan, pay personal credit card bills, and buy a vintage basketball court for his home.

This case was jointly investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Indiana Secretary of State.

IRS Criminal Investigation Special Agent in Charge, Gabriel Grchan, stated, “Mr. Westby told convincing stories to cover his tracks; however, at the end of the day his lies didn’t add up and IRS special agents solved the problem.  Together with our federal partners we work vigorously to shut down corrupt, illegal behaviors that threaten honest and lawful investment practices.”

"This sentence sends a clear message that illegal business practices will not be tolerated," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "The FBI and our law enforcement partners will continue to aggressively pursue individuals who steal money from the pockets of hardworking Hoosiers."

"Mr. Westby was not registered to sell securities with my office," said Secretary of State Connie Lawson. "This is often the number one warning sign that the investment may be a scam. I encourage all investors to do their homework and research investment professionals before making a deal. Hoosiers can ensure their investment professional is registered by looking on our website or by calling our office."

According to Assistant United States Attorney Tiffany J. Preston who is prosecuted this case for the government, Westby must make restitution of over $985,000 and serve three years of supervised release following his sentence.

          CONCORD, N.H. - Michael Roman Burghardt, 33, of Manchester, pleaded guilty in federal court on Friday to illegal firearm possession, Acting United States Attorney John J. Farley of the District of New Hampshire announced today.

          According to court documents and statements made in court, law enforcement agents began an investigation after receiving information from a reliable source that Burghardt was regularly carrying a .380 caliber handgun. At the time, Burghardt had a prior felony conviction, and could not legally possess any firearms.  After arresting Burghardt on an unrelated warrant, agents found in his coat pocket a handgun consistent with the information they had received.

          Burghardt is scheduled to be sentenced on March 21, 2018.

          “Gun violence threatens the safety of our communities,” said Acting U.S. Attorney Farley.  “One important way to prevent gun violence is to enforce our firearms laws to ensure that criminals do not possess dangerous weapons.  This case is one example of how the U.S. Attorney’s Office is working closely with our law enforcement partners to keep guns out of the hands of criminals.”

         This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms, & Explosives.  The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.

          The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. 

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