PROVIDENCE – A Westerly man will continue to be held in federal custody following his arraignment on a superseding indictment charging him with receipt, possession and distribution of child pornography, enticement of a minor to engage in illicit sexual activity, and transferring obscene material to a minor.

Jonathan Breslin, 32, of Westerly, pleaded not guilty on Monday before U.S. District Court Magistrate Judge Patricia A. Sullivan to a five-count superseding indictment charging him with the one count each of possession, receipt and distribution of child pornography, transfer of obscene material to a minor, and enticement of a minor to engage in illicit sexual activity. The superseding indictment was returned on December 6, 2017.

Breslin has been detained since his arrest on August 9, 2017, after a court authorized search of his residence by agents from Homeland Security Investigations (HSI), the Rhode Island State Police Internet Crimes Against Children Task Force, and members of the Westerly and Warwick Departments resulted in the seizure of a computer, a digital media storage device and cell phone allegedly containing child pornography. 

Breslin’s arraignment and detention are announced by Acting United States Attorney Stephen G. Dambruch; Michael S. Shea Acting Special Agent in Charge of Homeland Security Investigations for New England; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Westerly Police Chief Richard G. Silva; and Warwick Police Chief Colonel Stephen M. McCartney.

According to court documents, it is alleged that in late March 2016, a law enforcement officer in Saskatchewan, Canada, arrested an individual in an unrelated matter. A search of a cell phone belonging to the individual resulted in the discovery of an online mobile chat application allegedly used to discuss and share child pornography images and videos to a network of users. Saskatchewan law enforcement agents identified 78 unique users who allegedly shared and/or communicated about child pornography. The information was provided to Homeland Security Investigations, who, through further investigation, identified IP addresses in the United States that were allegedly used to participate in some of the conversations, and/or to upload and view child pornography. Among the IP address identified was one allegedly belonging to Breslin.

Further investigation by an HSI agent in Rhode Island included online chats between Breslin and the agent posing as an individual interested in discussing, viewing and sharing child pornography. It is alleged that Breslin discussed viewing, possessing and attempted production of child pornography. Additionally, according to the superseding indictment, it is alleged that Breslin transferred obscene material to a person under the age of 16 and attempted to entice a minor to engage in illicit sexual activity.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Possession of child pornography and transfer of obscene material to a person under the age of 16 are punishable by statutory penalties of up to 10 years in federal prison. Receiving and distribution of child pornography are punishable by statutory penalties of 5-20 years in federal prison. Enticing a minor to engage in illicit sexual activity is punishable by statutory penalties of between 10 years- life in federal prison.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

The Rhode Island ICAC Task Force is comprised of law enforcement personnel from the Rhode Island State Police, Homeland Security Investigations, United States Postal Inspection Services, and the Warwick, Cranston, East Providence, Newport, Pawtucket, North Kingstown, Portsmouth, and Woonsocket Police Departments.

###

John H. Durham, United States Attorney for the District of Connecticut, announced thatRYAN BUDD, 27, of Branford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to time served and three years of supervised release for distributing heroin that contributed to a non-fatal overdose last year.  Judge Meyer ordered BUDD to perform 150 hours of community service during his term of supervised release.

This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to court documents and statements made in court, on March 1, 2016, at approximately 11:39 p.m., Danbury Police responded to a service station on the report of a woman in medical distress in a restroom.  At the location, officers observed the victim on her knees, with her face on the floor, taking a deep gasping breath every 20 seconds.  The victim also was holding a syringe. 

The victim was transported to the hospital, where she was placed on life support.  She has since recovered from the overdose.

At the service station, officers collected various items as evidence, including a second syringe, three folds of heroin and two cell phones.

The investigation identified BUDD as the heroin source of supply in this overdose case.

BUDD, who resided in Bethel at the time of the offense, was arrested on a federal criminal complaint on March 9, 2016, and has been released on a $100,000 bond since March 16, 2016.  On July 7, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.

This investigation was conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, the Danbury Police Department and the Wilton Police Department.  The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that 13 individuals have been sentenced in connection with their involvement in an international heroin distribution conspiracy. During this investigation, investigators seized approximately 6.5 kilograms of heroin, 9 firearms, and approximately $600,000 in drug proceeds.

According to court documents, during the course of the conspiracy, Felix Mejia Lagunas oversaw the importation of at least 30 kilograms of heroin into the United States from Mexico, and the subsequent transportation of the narcotics to Jesus Alberto Bermudez Caraballo in Orlando. Bermudez Caraballo provided a portion of the heroin to Jose Carlos Polanco Vasquez, Raul Vicente Espada Ortiz, and Deyvis Lee Echevarria for redistribution in the Orlando area. Angel Alexis Alicea transported the remaining amount of the heroin from Orlando to the Tampa Bay area where Jose Leonardo Jimenez, Jose Leonardo Jimenez, and Jose Antonio Crespo Negron mixed the narcotics with cutting agents, packaged it for distribution, and then provided the drugs to street level distributors Freddie, Resto, Juan Carlos Lopez, Robert Kelly, and Rachel Augustine Thomas. These street level distributors then sold the heroin in Tampa, St. Petersburg, and elsewhere.

“Multi-agency cooperation is critical in combating the expansive opiate threat,” stated Special Agent in Charge Eric W. Sporre of the FBI’s Tampa Field Office. “By combining federal, state and local resources, a major heroin trafficking ring was dismantled; removing large quantities of a dangerous drug off the streets.”

FDLE Commissioner Rick Swearingen said, “The hard work of our partners at the federal, state and local level helped to bring these violent offenders to justice and get them off our streets. The sentences handed down should send a clear message to traffickers and help to make Florida safer.”         

“This is a perfect example of the kind of multi-agency teamwork necessary to dismantle these complex conspiracies and bring criminals to justice,” said Tampa Police Chief Brian Dugan. “Our communities are safer today as a result of the work of this task force.” 

           These cases were investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Federal Bureau of Investigation, the Tampa Police Department, the Florida Department of Law Enforcement, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Hillsborough County Sheriff’s Office. They were prosecuted by Assistant United States Attorney Carlton C. Gammons.

             Acting United States Attorney Corey R. Amundson announced that yesterday Chief U.S. District Judge Brian A. Jackson sentenced QUINTON HALL, age 33, of Baton Rouge, Louisiana, to serve fifteen (15) years in federal prison based on the defendant’s convictions for trafficking methamphetamine in Ascension and Livingston Parishes and possessing a firearm in furtherance of such trafficking. 

            A federal jury unanimously convicted HALL following a three-day trial in July 2017.  At trial, the evidence established that HALL obtained kilogram and multi-ounce quantities of methamphetamine from suppliers in Texas and California through the mail and other means.  HALL and others would then distribute the methamphetamine to customers in Livingston and Ascension Parishes.  HALL used a hidden compartment behind the stereo of his vehicle to conceal a Smith & Wesson 9mm pistol that he used to further his drug trafficking business. 

            Acting U.S. Attorney Corey Amundson stated, “Armed drug traffickers contribute significantly to the threat of violence in our communities and must not be tolerated.  The defendant’s fifteen-year sentence – which was mandatory under federal law – reflects our dedication to pursuing those who endanger our community with all the tools at our disposal.  We do not seek to fill the prisons, but to deter others inclined to follow the same path and to spare the honest and descent members of our communities from further harm.  I commend the agents and prosecutors whose dedicated work brought this defendant to justice.” 

            This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the United States Drug Enforcement Administration, the United States Postal Inspection Service, the Livingston Parish Sheriff’s Office, and the Ascension Parish Sheriff’s Office.  The investigation received valuable assistance from the Louisiana State Police.  This matter was prosecuted by Assistant United States Attorneys J. Brady Casey and Ryan Crosswell.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent in Charge of the New York Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), announced yesterday’s arrest of SCOTT McKINNEY, a flight attendant, for conspiracy to violate airport security requirements and operation of an unlicensed money transmitting business.  McKINNEY will be presented later today in federal court in San Diego, California, before United States Magistrate Judge Andrew G. Schopler.

Acting U.S. Attorney Joon H. Kim said:  “As alleged, Scott McKinney abused his privileges as an airline employee, misusing the Known Crewmember lane to smuggle hundreds of thousands of dollars through security, in furtherance of an illegal money transmitting business.  Thanks to the dedicated investigative work of HSI, McKinney’s illegal money transmitting business has been grounded.”

HSI Special Agent in Charge Melendez said:  “As a Known Crewmember, McKinney allegedly took advantage of the security access allowed with his position by transmitting large sums of money across the country without a license. Those who choose to use their position’s security clearance at our airports to smuggle cash, narcotics, or any other unlawful good, pose a significant threat to our national security and our efforts are centered to shut down that vulnerability.”

According to the Complaint filed today in Manhattan federal court:[1]

Between July and November 2017, McKINNEY, a flight attendant based in California, conspired with others to operate an unlicensed money transmitting business and to violate airport security requirements.  On several occasions, McKINNEY flew from California to New York to pick up packages containing $50,000 or more in cash at JFK Airport or other locations in New York City.  McKINNEY then flew back to California with the cash.  On some of these occasions, McKINNEY was on the ground at JFK Airport for two hours or less before flying back to California.  At the time of these trips, McKINNEY did not have a money transmitting license in New York or California, and was not registered as a money transmitter with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network.  In a statement to HSI agents on or about September 15, 2017, McKINNEY admitted that he was aware of the licensing requirement and lacked such a license.

To facilitate the operation of his illegal money transmitting business, McKINNEY used the Known Crewmember (“KCM”) lane to bypass regular airport security screening.  The KCM lane allows approved airline crewmembers to pass through security more quickly and, typically, without having their carry-on luggage screened.  On several occasions, McKINNEY wore his crewmember uniform and used the KCM security lane – even though he was not working on those occasions – to smuggle bulk cash through airport security. 

For example, on September 15, 2017, McKINNEY flew from Los Angeles, landed at JFK Airport not wearing his crewmember uniform, entered the terminal, changed into his uniform, and retrieved a package from a co-conspirator in the airport parking garage.  McKINNEY then used the KCM lane to smuggle the package through security.  HSI agents subsequently approached McKINNEY while he was waiting to board a return flight to Los Angeles.  During a search of McKINNEY’s carry-on luggage, agents found the package that he had just received in the parking garage, which contained approximately $54,000 in cash.  McKINNEY told the agents that, on several prior trips, he had transported bulk cash from New York to California and then given the cash to a co-conspirator at the airport in Los Angeles.

*              *             *

McKINNEY, 49, of San Diego, California, was arrested on December 18, 2017, in San Diego.  McKINNEY is charged with one count of conspiracy to enter an aircraft or airport area in violation of security requirements and one count of conspiracy to operate an unlicensed money transmitting business.  Each count carries a maximum sentence of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Kim thanked HSI for its outstanding work on this investigation.  He added that the investigation is continuing.

This matter is being handled by the Office’s Narcotics Unit.  Assistant United States Attorney Michael D. Neff is in charge of the prosecution.

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

Earlier today, in federal court in Brooklyn, Gerald Tighe and Stephen Kalinoski, were sentenced by United States District Court Judge I. Leo Glasser to six months’ home confinement, four years’ probation, and 300 hours of community service, for wire fraud conspiracy in connection with their operation of Med Prep Consulting, Inc. (Med Prep), a now-defunct Tinton Falls, New Jersey-based medical drug repackager and compounding pharmacy, which sold adulterated and contaminated drug products to healthcare providers across the country.  As part of their sentences, Kalinoski will forfeit $140,000 of criminal proceeds to the government. The amount of forfeiture owed by Tighe and the amount of restitution both defendants must pay to Yale-New Haven Hospital, which discovered it had received drug products from Med Prep contaminated with mold, will be determined by the Court at a later date.  The defendants pleaded guilty to the charges on July 14, 2017.

Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Mark McCormack, Special Agent-in-Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigations, Metropolitan Washington Field Office (FDA OCI), announced the sentence. 

According to court filings and facts presented during the sentencing, Med Prep processed numerous drugs, including oncology and dialysis drugs, pain medications, anesthesia drugs and operating room drugs, in purportedly aseptic conditions.  In an effort to gain market share, Med Prep repeatedly misrepresented to its customers, who were hospitals and other healthcare providers, that it adhered to, and in some areas exceeded, industry standards and laws applicable to sterile drug preparation.  In fact, Med Prep produced drugs in a facility that fell far short of even the most basic industry standards of cleanliness, creating a risk to the health of already ill patients.  Tighe, as Med Prep’s president and owner, and Kalinoski, as its director of pharmacy and registered pharmacist-in-charge, lied to healthcare providers about Med Prep’s failures to comply with basic sterility practices.  Med Prep halted its production of drug products in the summer of 2013, following an incident in which it had distributed intravenous drugs containing visible mold to Yale-New Haven Hospital.

“Gerald Tighe and Stephen Kalinoski, motivated by a desire to increase profits and cut costs, put patients already suffering from serious illnesses at further risk by distributing drugs that were contaminated or mislabeled,” stated Acting United States Attorney Rohde.  “We will continue to investigate and prosecute those drug repackagers and compounding pharmacies that would place corporate greed ahead of patient safety.”  Ms. Rohde gratefully acknowledged the assistance and cooperation of the FDA’s Office of Criminal Investigations; the United States Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the United States Office of Personnel Management, Office of the Inspector General; the Department of Justice, Civil Division, Consumer Protection Branch and Commercial Litigation Branch; the FDA’s Office of the Chief Counsel; the Office of the Attorney General of New Jersey; and the New Jersey Board of Pharmacy.           

“When people place profits over the public health and distribute unsafe and contaminated drugs, it is the U.S. consumer who is put at risk,” stated FDA OCI Special Agent-in-Charge McCormack. “The FDA will continue to pursue and bring to justice those who endanger the public’s health by distributing adulterated drugs.”

 
The case is being prosecuted by Assistant United States Attorneys Alixandra E. Smith, Ameet B. Kabrawala and Erin E. Argo, with assistance provided by Assistant United States Attorney Tanya Hill of the Office’s Civil Division.   

The Defendants:

GERALD TIGHE
Age:  59
West Long Branch, New Jersey

STEPHEN KALINOSKI
Age:  53
Middletown, New Jersey

E.D.N.Y. Docket No. 15 CR 62 (ILG)

PHILADELPHIA – The Justice Department today announced settlements with Physician’s Alliance Ltd. (PAL), for allegedly receiving illegal remuneration in exchange for patient referrals to hospitals owned by the now-defunct Health Management Associates (HMA).

PAL, headquartered in Lancaster, Pennsylvania, and three of its executives, Lee Meyers, Michael Warren, M.D. and Wallace Longton, M.D., agreed to resolve allegations that, from 2009 until 2012, PAL accepted illegal remuneration from HMA to refer patients to two HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center.  Under the settlement, PAL and its executives will pay $4 million plus a percentage of proceeds from the sale of PAL’s interest in a joint venture with HMA.       

“These physicians and executives prioritized their own financial interests over the needs of their patients,” said United States Attorney Louis D. Lappen. “Such conduct compromises patient care and undermines the integrity of our nation’s federal health care programs. This settlement should serve as a warning to all providers who allow financial incentives to displace their medical judgment.”

 “The Hippocratic oath enjoins physicians to do no harm, not maximize profits by pocketing illegal referral bribes,” said Nicholas DiGiulio, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Physicians that stray from their oath should not be surprised when they come under law enforcement scrutiny.” 

Under the qui tam, or whistleblower, provisions of the False Claims Act, private individuals may sue on behalf of the government for false claims and share in any recovery.   George E. Miller and Michael J. Metts, former HMA hospital executives, filed suit in the Eastern District of Pennsylvania alleging the scheme between PAL and HMA. Miller’s and Metts’ share of the settlement has not yet been determined.

The settlement was the result of a civil prosecution by the United States Attorney’s Office for the Eastern District of Pennsylvania led by Assistant United States Attorneys Charlene Keller Fullmer and Veronica Finklestein. The investigations were conducted by the Office of Inspector General of the United States Department of Health and Human Services and the Federal Bureau of Investigation. 

The case is captioned United States ex rel. Miller & Metts v. HMA, et al, Case No. 14-00339 (D.D.C.).  

The claims resolved by the settlements are allegations only, and there has been no determination of liability.

Bradenton, Florida – Acting United States Attorney W. Stephen Muldrow, Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration, and Manatee County Sheriff Rick Wells announce drug trafficking charges against 34 individuals as a result of “Operation Hot Batch.” This joint law enforcement effort began in November 2016, to target drug trafficking organizations engaged in the illicit distribution of fentantyl, carfentanil, and other controlled substances. The chart below outlines the charges against each individual. 

“The Department of Justice is committed to combatting the opioid epidemic,” said Acting United States Attorney Muldrow. “The charges announced today demonstrate that commitment, as well as the strength of our federal, state, and local law enforcement partnerships. Together, we will continue to use all available law enforcement tools to dismantle drug trafficking organizations.”

“Our goal for this investigation is to find drug traffickers who are destroying lives in this community, and hold them accountable,” said Sheriff Wells.

As a result of a committed collaboration between the DEA and its law enforcement partners, a criminal and dangerous drug trafficking organization that distributed deadly drugs such as fentanyl has been successfully dismantled,” said DEA Special Agent in Charge Wright.  “Along with our partners at all levels of government, we will continue to stay committed and dedicate all our efforts and all our resources to ridding communities of this poison so that they are better able to live safe and drug free lives.”

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

These cases were investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, U.S. Customs and Border Protection, the Manatee County Sheriff’s Office, the Bradenton Police Department, and the Sarasota Police Department as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation known as Operation Hot Batch. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. 

These cases will be prosecuted by Assistant United States Attorneys Natalie Adams, Callan Albritton, Dan Baeza, Carlton Gammons, Michael Gordon, Shauna Hale, Frank Murray, James Preston, Michael Sinacore, and Taylor Stout. 

James Williams, 30, of Philadelphia, PA, and Aisha Jones, 28, of Bristol, PA, were charged today by Indictment^[1] with one count of distribution of heroin, one count of possession of heroin with intent to distribute, one count of possession of a firearm in furtherance of a drug trafficking crime, and, as to Williams only, one count of possession of a firearm as a convicted felon, announced United States Attorney Louis D. Lappen.

If convicted, Williams faces a maximum possible sentence oflife imprisonment, a mandatory minimum five years’ imprisonment consecutive to any other sentence imposed, a mandatory minimum three years of supervised release up to lifetime supervised release, a $2,500,000 fine, and a $400 special assessment.  Jones, if convicted, faces a maximum possible sentence of life imprisonment, a mandatory minimum five years’ imprisonment consecutive to any other sentence imposed, a mandatory minimum three years of supervised release up to lifetime supervised release, a $2,250,000 fine, and a $300 special assessment.

The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and the Bensalem Township Police Department, and is being prosecuted by Assistant United States Attorney Andrew J. Schell.

PROVIDENCE, RI –A U.S. District Court Magistrate Judge in Rhode Island today ordered a New Jersey maritime captain to surrender his United States Coast Guard 100-ton Merchant Marine license to the Court, and to refrain from piloting or operating any vessel, as conditions of his release on unsecured bond while awaiting trial on a charge of seaman’s manslaughter in the death of an 81-year-old Connecticut boater in waters off Rhode Island.

At his arraignment today in U.S. District Court in Providence before U.S. District Court Magistrate Judge Patricia A. Sullivan, Cooper “Chick” Bacon, 78, of Cape May, N.J., through his attorney, entered a plea of not guilty and was released on $50,000 unsecured bond. In addition to surrendering his Merchant Marine license, Bacon was ordered to surrender his passport and is prohibited from travelling outside of the United States.

 A federal indictment returned on December 6, 2017, alleges that Bacon failed to take precautions required of the ordinary practice of a seaman when he was at the helm of a yacht on September 22, 2015, which collided with a 23-foot power boat, the Peggy K, in waters off Westerly, killing its sole occupant, Walter S. Krupinski, 81, of Stonington, Conn. It is alleged that, among other things, Bacon failed to take precautions required by the ordinary practice of seamen; adequately assess the risk of collision; proceed at a safe speed; post his First Mate to look-out; and properly overtake, give-way and steer well clear of the Peggy K.

The collision occurred in Fishers Island Sound, on the waters off Naptree Point in the town of Westerly, Rhode Island. 

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. Seaman’s manslaughter is punishable by statutory penalties of up to 10 years imprisonment, 3 years supervised release and a fine of up to $250,000.

Cooper Bacon’s arraignment is announced by Acting United States Attorney Stephen G. Dambruch; Admiral Steven Poulin, Commander of the First Coast Guard District, United States Coast Guard; and Richard Cox, Special Agent in Charge, Coast Guard Investigative Service, New England Region.

The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

The matter was investigated by the Coast Guard Investigative Service.

Acting United States Attorney Stephen G. Dambruch thanks the many local and state agencies in Rhode Island and Connecticut that provided assistance and information to the United States Attorney’s Office in Rhode Island and to the Coast Guard Investigative Service during the investigation of this matter.

###

     PHOENIX – On Dec. 18, 2017, Marvin Benally, 47, of Leupp, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge David G. Campbell to 264 months in prison followed by lifetime supervised release and sex offender conditions.  Benally had previously pleaded guilty to abusive sexual contact of a child.

     The case involved Benally repeatedly sexually abusing a child, who was then between the ages of 11 and 12 and also a member of the Navajo Nation.   

     The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department.  The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:            CR-17-8130-PCT-DGC

RELEASE NUMBER:    2017-123_Benally

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

     PHOENIX – Today, Yomtov Scott Menaged, 40, of Phoenix, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 17years in prison for orchestrating multiple fraud schemes resulting in more than $30 million in losses.  Menaged had previously pleaded guilty to bank fraud, money laundering, and aggravated identity theft.  The Court also ordered Menaged to pay the various victims $33,558,407.76 in restitution.  

     Menaged, who operated a real estate investment business as well as retail furniture stores, embezzled millions in loans meant for real estate purchases and provided fake real estate purchase documents to conceal the fraud.  Menaged used the embezzled money to support his lavish lifestyle that included travel, million dollar homes, and luxury vehicles. 

     When Menaged no longer had access to the embezzled funds, he orchestrated an elaborate identity theft scheme involving purported customers of his various retail furniture stores.  Menaged obtained the names and personal identification information of recently deceased individuals and used their information to submit fake credit applications from his furniture stores to various banks.  In fact, no real furniture purchases ever took place.  The ID theft scheme resulted in more than $2 million losses to the banks. 

     “Menaged engaged in a multi-year fraud scheme and brazenly stole from his victims -- their money, their identities, and ultimately their trust,” stated First Assistant United States Attorney Elizabeth A. Strange.  “Today’s lengthy sentence is a fitting punishment for his egregious crimes.”

     “While the harm and damage the defendant caused by swindling more than $33 million from innocent investors can never be repaired, the 200 plus victims can now take some small measure of satisfaction that he is now looking at 17 years in federal prison and a substantial forfeiture as repayment for his crimes.” said Scott Brown, special agent in charge of Homeland Security Investigations (HSI) in Phoenix. “HSI special agents dedicated to uncovering financial fraud will continue to aggressively investigate those who seek to profit by taking advantage of others.”

     “The criminal conduct by defendant Menaged was extensive.  His actions caused personal and financial harm to many individuals, including his former business partner,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “The sentence is very appropriate based on the $33 million loss from his fraud scheme and the tragic human suffering he caused.”

     The investigation in this case was conducted by the Department of Homeland Security, Homeland Security Investigations and Internal Revenue Service-Criminal Investigation.  The prosecution was handled by Monica B. Edelstein and Kevin M. Rapp, Assistant U.S. Attorneys, and Jennifer A. Giaimo, Special Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:            CR-17-000680-PHX-GMS           

RELEASE NUMBER:    2017-122_Menaged

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

MONROE, La. –Acting U.S.Attorney Alexander C. Van Hook announced today that a man from Mexico pleaded guilty to being an illegal alien in possession of a rifle.

Gerardo C. Rodriguez, 53, of Mexico, pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of possession of a firearm by an illegal alien. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Union Parish Sheriff’s deputies responded to a disturbing-the-peace call on December 11, 2016 in Bernice, La. The deputies found Rodriguez intoxicated, arrested him and towed his vehicle. Deputies noticed a gunshot wound in his leg. Rodriguez told deputies in an interview the next day that he had shot himself with a .22 caliber pistol while drinking heavily. He also told deputies that he owned the Savage rifle (Model 110E in .270 caliber), which was seized from his vehicle. He admitted to reentering the United States illegally and possessing the rifle as a convicted felon. Rodriguez was removed to Mexico on December 21, 2004 as an aggravated felon.

Rodriguez faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for April 11, 2017.

Homeland Security Investigations and the Union Parish Sheriff’s Office conducted the investigation.  Assistant U.S. Attorney Mike O’Mara is prosecuting the case.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that OLIVER SOHNGEN, a/k/a “Helmuth Moss,” a/k/a “Stephan Weierbach,” was sentenced today to 135 months in prison for sex trafficking of minors.  SOHNGEN pled guilty on August 10, 2017, before U.S. Magistrate Judge Ronald L. Ellis, and was sentenced today by U.S. District Judge Lewis A. Kaplan.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “Oliver Sohngen, a teacher at a music school for children, was a sexual predator.  He paid to have sex with minor girls at least twice, and attempted to engage in sex trafficking of girls under the age of 14.   His significant sentence will ensure that he is no longer a threat to our community, in particular, our children.  We remain committed to prosecuting all those who, like Sohngen, prey on our most innocent and vulnerable victims.”

According to the Complaint and Information filed against SOHNGEN, other court documents publicly filed in this case, and statements made in court proceedings, including today’s sentencing:

Between March 2013 and November 2013, SOHNGEN exchanged text messages with a co-conspirator to arrange paid sexual encounters with minor girls ranging in age from 8 to 17.  On at least two occasions, SOHNGEN engaged in sexual contact with minor girls at the co-conspirator’s apartment in the Bronx, New York.  In addition, between November 2015 and January 2016, SOHNGEN participated in recorded telephone conversations with an undercover NYPD officer who was posing as a 15-year-old girl.  SOHNGEN proposed to meet with the purported 15-year-old girl in order to engage in sexual conduct.

*                      *                     *

In addition to the prison term, SOHNGEN, 52, of Queens, New York, was sentenced to 10 years of supervised release.

Mr. Kim praised the outstanding investigative work of HSI and the NYPD, and expressed gratitude for the efforts of HSI’s New York Trafficking in Persons Unit and the NYPD’s Vice Enforcement Division Major Case Team.  Mr. Kim also expressed gratitude to the Bronx County District Attorney’s Office for its partnership in this investigation.   

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Frank Balsamello and Michael Krouse are in charge of the prosecution, with assistance from Bronx County Assistant District Attorney Meagan Powers.

ELKINS, WEST VIRGINIA – Adonai Wilfredo Parada, of El Salvador, was indicted by a federal grand jury today on an illegal re-entry charge, United States Attorney Bill Powell announced.

Parada, age 39, was indicted on one count of “Reentry of Removed Alien.” Parada is accused of being in the United States illegally after being removed as an alien in 2015. Parada was allegedly found in Ranson, West Virginia on December 7, 2017.

Parada faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. 

Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Department of Homeland Security, Immigration and Customs Enforcement is investigating. 
 
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man was sentenced in federal court today for distributing child pornography over the Internet.

Cody Lee Davidson, 20, of Raytown, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole, which is the statutory maximum penalty. The court also sentenced Davidson to supervised release for the rest of his life following incarceration.

On May 2, 2017, Davidson pleaded guilty to distributing child pornography over the Internet. Davidson admitted that he took pornographic photos of a 7-year-old child victim, identified as Jane Doe, and posted those images on a Web site. Davidson also took a video of the child victim, which federal agents located on his cell phone. Davidson also admitted he took photos of an 8-year-old child victim, identified as Jane Doe 2.

The investigation began when agents with Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in Boston discovered the images of child pornography posted on a website that is often used by traders of child pornography to distribute to one another. Law enforcement officers executed a search at Davidson’s residence and seized three cell phones and a camera. Analysis located photos and videos of child pornography on each of the seized cell phones, including pornographic photos and video of Jane Doe.

 Analysis of Davidson’s cell phones located approximately 1,900 images and 400 videos that contain child pornography, including images and videos that depict adult males sexually assaulting female prepubescent children ranging in age from infants to 12 years old.

This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
 
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
 

Boston – An Everett man was sentenced today to ­­­28 years in prison for conspiring with others to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and kill persons in the United States.

David Daoud Wright, a/k/a Dawud Sharif Abdul Khaliq, a/k/a Dawud Sharif Abdul Khaliq, 28, of Everett, Mass., was sentenced by U.S. District Court Judge William G. Young to 28 years in prison and a lifetime of supervised release. In October 2017, Wright was convicted by a federal jury of conspiracy to provide material support to ISIS, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to obstruct justice, and obstruction of justice.

“Mr. Wright plotted to kill innocent Americans on behalf of ISIS,” said Acting United States Attorney William D. Weinreb. “Despite the fact that he was born in Massachusetts, Mr. Wright turned against his country and joined a radical terrorist organization. He became a soldier of ISIS and recruited U.S citizens to commit attacks within the United States aimed at killing civilians and police officers. Today’s sentence affirms our commitment to protecting the public and prosecuting those who pledge alliance to our enemies.”

“David Wright conspired with others to commit violent attacks here in the United States at the direction of ISIS,” said Acting Attorney General Boente. “This successful prosecution demonstrates that the Department of Justice will not waver in its commitment to bring justice to those who provide support and encourage violence on behalf of ruthless terrorist organizations.”

“Today's sentencing of David Wright finally holds him accountable for betraying his country, obstructing justice, and conspiring to support a brutally violent terrorist organization,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The spread of the ISIS ideology and it’s savagery against innocents around the world, was found right here at home, by an extremely unpredictable and dangerous person who radicalized to support an imprudent call to jihad. Through the dogged efforts of the FBI and our partners within the Massachusetts and Rhode Island Joint Terrorism Task Forces, who tirelessly work day-in and day-out to identify and thwart those who pose a serious threat, we clearly showed Mr. Wright was a soldier of ISIS, and a very real threat to national security and public safety.  This case truly highlights the importance of law enforcement collaboration here and around the world, and I'm grateful for the dedication of those committed to keeping the Commonwealth safe.”
 

Beginning in at least February 2015, Wright began discussing ISIS’ call to kill non-believers in the United States with his uncle, Usaamah Abdullah Rahim, and co-defendant Nicholas Alexander Rovinski. Specifically, Wright created a “martyrdom” operation cell in Massachusetts.  In April 2015, he created a Twitter page for the “Lions of America” and published a document entitled, Internal Conquest, on the internet in which Wright called on the “Lions of Allah” to kill Americans. Wright also plotted with Rahim and Rovinski to behead U.S. citizens at the direction of ISIS, and identified a New York woman as the first beheading target. Rahim purchased three knives for this plot.  In addition, Wright knew Rahim was communicating with an ISIS member in Syria, Junaid Hussain, who provided Rahim with an encrypted document containing details about the intended victim. In August 2015, Hussain was killed in an airstrike in Raqqah, Syria. 

In preparation for their attack, Wright conducted extensive research on weapons, knives, machetes, bombing making components, and methods to subdue their victims. Wright also conducted research on “how to start a secret militia in the United States.”   

On June 2, 2015, Rahim was shot and killed after he attacked law enforcement officers in a Roslindale, Mass., parking lot. Two hours before Rahim attacked the police, Wright had encouraged and motivated Rahim to pursue martyrdom by attacking the “boys in blue.”  Within minutes of learning of his uncle’s death from a family member, Wright deleted data from his laptop computer by restoring it to factory settings and deleted call logs on his cellphone that showed that he had spoken to Rahim that morning.

In September 2016, Rovinski pleaded guilty to conspiring to provide material support to ISIS and conspiring to commit acts of terrorism transcending national boundaries, and will be sentenced tomorrow.

Acting U.S. Attorney Weinreb, Acting AAG Boente and FBI SAC Shaw made the announcement today. This investigation was conducted by the Boston Joint Terrorism Task Force (JTTF); Boston Police Department; Massachusetts State Police; Everett Police Department; and Customs and Border Protection. The Suffolk District Attorney’s Office; Rhode Island State Police; Warwick, R.I. Police Department; and police in the United Kingdom also provided valuable assistance. The case was prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of the District of Massachusetts’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.

ELKINS, WEST VIRGINIA – Matthew Dean Smith, of Great Cacapon, West Virginia, was indicted by a federal grand jury today on illegal firearms charges, United States Attorney Bill Powell announced.

Smith, age 39, was indicted on one count of “Possession of an Unregistered Firearm,” one count of “Unlawful Possession of Firearms,” and one count of “Unlawful Possession of Explosives.” Smith is accused of possessing an unregistered silencer, unlawfully possessing a .9mm pistol and .223 caliber rifle, and possessing explosive materials that had been shipped to him from another state. The crimes allegedly took place in Morgan County in October and December 2017.

Smith faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. 

Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police are investigating. 
 
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
 

SYRACUSE, NEW YORK – Harry McCarthy, age 57, of Ogdensburg, New York, pled guilty today to sexually exploiting a child.

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

McCarthy admitted that in 2013 and 2014, he used a child to engage in sexually explicit conduct for the purpose of producing images of that conduct.  At the time of his crime, McCarthy was an officer at the Ogdensburg Police Department.

Sentencing is scheduled for April 18, 2018 in Syracuse before Chief United States District Judge Glenn T. Suddaby.  McCarthy pled guilty as part of an agreement that, if accepted by Chief Judge Suddaby, would require him to serve 15 years in prison, to be followed by a lifetime term of supervised release.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.  McCarthy would also be required to register as a sex offender. 

This case was investigated by the FBI and the New York State Police, and is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Geoffrey Brown.

This case was prosecuted as part of Project Safe Childhood.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.