FRESNO, Calif. — After a three day trial, Ashley Starling Thomas, 29, of Atlanta, Georgia, was convicted today by a federal jury of conspiring to launder money, conspiring to structure cash transactions, five counts of money laundering, and four counts of structuring cash transactions, Acting United States Attorney Phillip A. Talbert announced.

According to the evidence presented at trial, Thomas moved more than $200,000 in drug money through her bank accounts in a 22-day period in the summer of 2013. Thomas, who resided in Houston, Texas at the time, flew to Northern California on airline tickets paid for by a drug trafficking organization and made cash withdrawals of drug money from her bank accounts at dozens of bank branches in Sacramento, Eureka, and San Francisco. Thomas also traveled to Fresno where the drug trafficking organization was located. All of the cash withdrawals made by Thomas were in amounts less than $10,000, for the purpose of preventing her banks from filing Currency Transaction Reports on her cash withdrawals.

Following her conviction, U.S. District Judge Lawrence J. O’Neill ordered Thomas remanded into custody.

This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.

This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations in the U.S. by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn and Vincente A. Tennerelli are prosecuting the case.

Thomas is scheduled to be sentenced by Judge O’Neill on August 29, 2015. The maximum statutory penalty for money laundering conspiracy and money laundering is 20 years in prison and a $500,000 fine (or twice the value of the involved property). The maximum statutory penalty for structuring is 10 years in prison and a $500,000 fine. The maximum statutory penalty for structuring conspiracy is five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

            LOS ANGELES– Actor Mark Wayne Salling was charged today in a federal indictment with receiving and possessing child pornography on his laptop computer and a flash memory drive.

            Salling, 33, of Shadow Hills, who is best known for his role as Noah Puckerman on the television show “Glee,” was named in a two-count indictment returned this afternoon by a federal grand jury.

            “Those who download and possess child pornography create a market that causes more children to be harmed,” said United States Attorney Eileen M. Decker. “Young victims are harmed every time an image is generated, every time it is distributed, and every time it is viewed.”

            The indictment specifically alleges that Salling used the Internet to receive a still image and a video depicting child pornography on December 26, 2015. These images depict young girls.

            The second count in the indictment charges Salling with possessing two videos depicting child pornography on December 29, 2015. The image and video also depict young girls.

            “The traditional stereotype about the kinds of people who commit child sexual exploitation crimes simply doesn’t dovetail with reality. As our investigators can attest, the defendants in child pornography cases come in all ages and from all walks of life,” said Joseph Macias, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Los Angeles. “While people are often surprised when high-profile individuals come under scrutiny in such investigations, we hope cases like this will raise awareness about law enforcement’s vigilance to combat the online sexual exploitation of children and hold those involved, regardless of their position, accountable for their actions.”

            The laptop, a hard drive, and a USB flash drive seized from Salling’s residence at the end of 2015 contained thousands of images and videos depicting child pornography, according to investigators, who are continuing to review the material. Salling was initially arrested by the Los Angeles Police Department and HSI on state charges, and he was released on bond. Once investigators realized the scope of the collection of child pornography, the matter was referred to federal authorities for further action, which resulted in today’s indictment.

“It doesn’t matter who you are or what you do, if you hurt a child you will be held accountable,” said Lt. Andrea Grossman, Commander of the LAPD Internet Crimes Against Children Task Force. “These images are more than photographs, they are child abuse.”

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

            The charge of receiving child pornography carries a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years. The charge of possessing child pornography also carries a statutory maximum sentence of 20 years in federal prison.

            Salling, through his attorney, has agreed to surrender to federal authorities on June 3 to face the charges in the indictment. He is expected to be arraigned on the indictment on that date.

            The case against Salling is the product of an investigation by the Los Angeles Police Department and HSI as part of the Child Exploitation Investigations Group, a multi-agency task force that combats all forms of child exploitation. The Beverly Hills Police Department provided substantial assistance.

SACRAMENTO, Calif. — Michael Deshone Mathews, 42, of Elk Grove, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 11 years in prison for conspiracy to distribute oxycodone and possession with intent to distribute heroin, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, law enforcement began investigating reports in 2014 that Mathews was purchasing prescription medications from individuals in the Sacramento area. At the same time, investigators learned that Mathews was receiving cash deposits into various bank accounts from another state.

The investigation revealed that Mathews was meeting individuals with apparently legitimate prescriptions and paying those individuals in exchange for pills obtained from pharmacies. Mathews would then transport the pills to Washington state and receive payment for their resale through bank deposits.

When law enforcement officers searched Mathew’s home, vehicle, and storage locker, they found large quantities of methamphetamine, heroin, and prescription medications. Agents also found a large number of firearms and body armor.

This case was the product of an investigation by the Drug Enforcement Administration, the United States Department of Health and Human Services, the California Highway Patrol, the Sacramento County Probation Department, the Nevada County Sherriff’s Department, the United States Marshals Service, the California Bureau of Medi-Cal Fraud and Elder Abuse, the Sacramento Police Department, and the Elk Grove Police Department. Assistant United States Attorney Paul Hemesath prosecuted the case.

Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718

NEWS RELEASE SUMMARY– May 27, 2016

SAN DIEGO, CA – Three current and former U.S. Navy officers appeared in federal court today to face charges that they secretly worked on behalf of foreign defense contractor Leonard Glenn Francis to advance the interests of his company, including instances in which a highly influential captain allowed Francis to ghostwrite official Navy documents and correspondence and submit them as his own.

In exchange, Francis plied the now-retired Captain Michael Brooks, 57, of Fairfax Station, Virginia, with prostitutes, luxury travel, a days-long party in a presidential suite and other gifts. Also charged this week in the massive bribery and fraud scheme were Commander Bobby Pitts, 47, of Chesapeake, Virginia; and Lieutenant Commander Gentry Debord, 47, who is based in Singapore.

The charging documents allege that in return for lavish entertainment and travel expenses, the services of prostitutes and other illicit gifts, the defendants brazenly used their public offices to foist benefit after benefit upon Francis and GDMA, including passing on sensitive, internal U.S. Navy information to advance GDMA’s business interests and advocating for GDMA at every turn.

Brooks and Debord were each charged with one count of conspiracy to commit bribery; Pitts was charged with one count of conspiracy to defraud the United States and two counts of obstruction of official proceedings.  All of the charges relate to the defendants’ interactions with Francis, the former CEO of Glenn Defense Marine Asia (GDMA), a defense contracting firm based in Singapore with a decades-long relationship with the U.S. Navy.

Brooks and Pitts made their initial appearances today in the U.S. District Court for the Eastern District of Virginia. Brooks and Pitts made their initial appearances today in the U.S. District Court for the Eastern District of Virginia; Debord appeared in U.S. District Court for the Southern District of California. Brooks was allowed to post a $50,000 bond; Pitts was granted a $5,000 bond, ordered to be subject to electronic monitoring and to appear in the Southern District of California on June 10; Debord was granted a $40,000 bond secured by real property. He is scheduled to appear for a preliminary hearing before U.S. Magistrate Judge David Bartick on June 9, 2016.

According to the indictment, from June 2006 to July 2008, Brooks served as the U.S. Naval Attaché at the U.S. Embassy in Manila, Philippines. In this position, Brooks served as the representative of the Secretary of Defense, the Chairman of the Joint Chiefs of Staff and the United Forces of the United States in Manila and also as the military advisor to the United States Ambassador.

The indictment alleges that in exchange for travel and entertainment expenses, hotel rooms and the services of prostitutes – which Brooks and Francis referred to in code as “chocolate” or “mocha shakes” or “high tea” -- Brooks used his office to benefit GDMA and Francis. In one instance on May 25, 2008, Brooks attended a days-long party Francis hosted for U.S. Navy officials during a port visit to Manila by the USS Blue Ridge with alcohol, prostitutes and lavish hotel accommodations in the presidential suite of the Makati Shangri-La, among other luxuries.

According to the indictment, Brooks secured quarterly diplomatic clearances for GDMA vessels, which allowed GDMA vessels to transit into and out of the Philippines under the diplomatic imprimatur of the U.S. Embassy; he limited the amount of custom fees and taxes that GDMA was required to pay in the Philippines; and enabled GDMA to avoid inspection of any quantity or type of cargo that it transported.

The indictment also alleges that Brooks used his position and influence to advocate for and advance GDMA’s interest and that Brooks allowed Francis and others inside GDMA to ghostwrite U.S. Navy documents and correspondence, which Brooks then submitted as his own, objective work product. 

According to the indictment, from August 2009 to May 2011, Pitts was the Officer in Charge of the Navy’s Fleet Industrial Supply Command (FISC), which was charged with meeting the logistical needs of the U.S. Navy’s Seventh Fleet. The indictment alleges Pitts conspired with Francis and others to deprive the Department of the Navy with its right to have its affairs conducted free from corruption, fraud, and obstruction.  

In particular, in an effort to obstruct and impede the Department of the Navy’s ability to properly oversee and administer its ship husbanding contracts with GDMA, Pitts allegedly provided Francis with a hard copy of an NCIS report marked “for official use only,” which detailed an investigation by NCIS into GDMA for contract fraud and other improprieties. According to the indictment, the report detailed NCIS’s investigative actions and the witnesses that NCIS had interviewed. The indictment further alleged that in November 2010, Pitts forwarded to a GDMA employee an internal Navy email discussing details of FISC’s efforts to investigate whether GDMA was improperly charging the U.S. Navy for force protection services.

On November 23, 2010, Pitts gave GDMA an internal U.S. Navy email discussing FISC’s intention to contact Thai officials to determine whether GDMA had billed the U.S. Navy for force protection services – such as guards to protect U.S. ships while in port - that the Royal Thai Navy had provided free of charge.

According to a criminal complaint, from November 2007 to August 2013, Debord served in several logistical and supply positions in the Western Pacific. In exchange for cash, hotel stays and the services of prostitutes, Debord allegedly provided Francis with inside Navy information and documents, including information on an investigation into GDMA billing practices.

Debord further instructed GDMA to fraudulently increase its invoices to the U.S. Navy in order to cover the value of cash, hotel rooms, and other things of value provided to Debord. To conceal the true nature of his relationship with Francis, Debord referred to prostitutes as “cheesecake” or “bodyguards.”  For example, on October 13, 2008, Debord emailed a GDMA executive with pictures of a woman, commenting: “This is the cheesecake I want…” In November 2008, Debord wrote to a GDMA employee demanding a three-bedroom furnished apartment in Hong Kong: “I need a 3BDR one if you can. Away from sailors but near bars/clubs/cheesecakes.”

“We continue to uncover far-reaching, troubling levels of corruption as this investigation expands,” said U.S. Attorney Laura Duffy. “We will keep going until we are sure we have held accountable every person who traded integrity and honor for parties and prostitutes.”

“Today's charges and arrests are yet another example of the continued dedication by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the Department of Justice to identify and

prosecute those individuals who would abuse their positions of trust within the Department of Defense,” said James B. Burch, Director, Defense Criminal Investigative Service. “The conduct alleged in this investigation is deeply troubling. Defense Criminal Investigative Service and our law enforcement partners will

continue to investigate and seek to prosecute any individual, regardless of position, who would put our mission of 'Protecting America's Warfighters' at risk.”

“The GDMA investigation is moving forward with these arrests but much work remains to be done,” said Andrew Traver, Director of the Naval Criminal Investigative Service. “As we've stressed from the outset of this investigation, NCIS is committed to following the evidence wherever it leads and regardless of who is found to have violated the trust placed in them.”

Including those charged yesterday, 13 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including U.S. Navy Capt. Daniel Dusek, U.S. Navy Captain (Select) Michael Misiewicz, Lieutenant Commander Todd Malaki, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense civilian employee Paul Simpkins awaits trial.

On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 18, 2016, Alex Wisidagama, a former GDMA employee, was sentenced to 63 months and $34.8 million in restitution to the Navy; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to forfeit $95,000 in proceeds for the scheme.

NCIS, DCIS and DCAA are conducting the investigation. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.             

Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.

DEFENDANT                                                          Case Number: 16-CR-1206                                     

U.S. Navy Captain Michael Brooks, retired               Age 57                        Fairfax Station, Virginia

SUMMARY OF CHARGES

Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371

Maximum Penalty: 5 years in prison, a $250,000 fine,

DEFENDANT                                                          Case Number: 16-CR-1207                                     

Commander Bobby Pitts                                            Age 47                        Chesapeake, Virginia

SUMMARY OF CHARGES

Conspiracy to Defraud the United States, in violation of 18 U.S.C. § 371

Maximum Penalty: 5 years in prison, a $250,000 fine,

Obstruction of Proceedings, in violation of 18 U.S.C. § 1505

Maximum Penalty:  5 years in prison, a $250,000 fine,

DEFENDANT                                                          Case Number: 161510                                             

Lieutenant Commander Gentry Debord                     Age 47                        Singapore                   

SUMMARY OF CHARGES

Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371

Maximum Penalty: 5 years in prison, a $250,000 fine,

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

SANTA ANA, California – An associate of the Orange County Mexican Mafia criminal enterprise, who pleaded guilty to federal racketeering charges related to his role in the Orange County Mexican Mafia, has been sentenced to serve over five years in federal prison.

Danny “Big Shotgun” Rodriguez, 41, of Orange, was sentenced on Monday to 64 months in prison by United States District Judge Andrew J. Guilford. Rodriguez pleaded guilty last year to conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.

According to a plea agreement filed in federal court, Rodriguez’s role in the RICO conspiracy included extortion – or collecting “taxes” – from criminal street gang members and others, which enabled the Orange County Mexican Mafia to continue trafficking narcotics and to exert influence over neighborhoods. Rodriguez also distributed messages on behalf of the gang, including messages that ordered “green lights” – assaults – on gang members. The plea agreement notes that Rodriguez wrote a message ordering an assault, which led associates of the Orange County Mexican Mafia to attack an individual in custody.

The Mexican Mafia is a powerful and violent prison gang that controls drug distribution and other illegal activities within the California penal system and on the streets of Southern California by organizing Latino street gang members for the purpose of establishing a larger network for the Mexican Mafia’s illegal activities. If a street gang does not comply with the demands of the Mexican Mafia, the prison gang will order the assault or murder of the offending gang’s members, whether they are in custody or on the streets.

“Defendant Rodriguez helped the Mexican Mafia by collecting ‘taxes’ and passing directives,” said United States Attorney Eileen M. Decker. “Rodriguez, and others like him, enabled the Mexican Mafia to carry out its criminal activities, which involved narcotics trafficking and the use of violence, and this sentence appropriately recognizes that fact.”

Rodriguez was one of 25 defendants named in a RICO indictment brought as part of Operation “Smokin’ Aces,” which was a multi-agency operation that targeted the Orange County wing of the Mexican Mafia and led to charges against more than 80 defendants in federal court and about four dozen people in state court. In addition to Rodriguez, 16 other defendants named in the RICO indictment have been sentenced, with one defendant receiving a prison term of nearly 10 years.

            The investigation was jointly conducted by special agents of the Santa Ana Gang Task Force, which consists of agents and officers with the Federal Bureau of Investigation; the Santa Ana Police Department; the Orange County Sheriff’s Department; the Bureau of Alcohol, Tobacco and Firearms and Explosives; and the California Department of Corrections and Rehabilitation-Special Service Unit.

FRESNO, Calif. — After a four–day trial, a federal jury found Robert Wallace Smith, 37, of Lemoore, guilty today of one count of receipt and distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced. The trial was held before U.S. District Judge Dale A. Drozd.

According to evidence presented at trial, Smith’s laptop computer, which was seized pursuant to a federal search warrant on December 23, 2011, contained a collection of 388 videos and pictures of children being sexually abused.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Megan A. S. Richards and John R. Edwards are prosecuting the case.

Smith was remanded into custody after the jury reached its verdict.

Smith is scheduled to be sentenced by Judge Drozd on September 12, 2016. Smith faces a mandatory minimum statutory penalty of five years in prison, a maximum statutory penalty of 20 years in prison, and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about internet safety education.

Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of DAVID HOBSON, who served as an investment adviser in the Providence, Rhode Island, offices of two different national broker-dealer and investment advisers (“Brokerage Firm-1” and “Brokerage Firm-2”), for engaging in a scheme to commit insider trading in connection with deals involving a pharmaceutical company (the “Pharma Company”) at which MICHAEL MACIOCIO, HOBSON’s friend and client, worked.  In addition, Mr. Bharara announced the unsealing of charges against MACIOCIO, who pled guilty and admitted to his participation in the scheme in May.  MACIOCIO, who had been employed by the Pharma Company, regularly possessed material, nonpublic information (“Inside Information”) concerning pending acquisitions and transactions under consideration by the Pharma Company.  From at least 2008 through April 2014, MACIOCIO breached his duty of confidentiality to the Pharma Company by providing Inside Information about potential acquisitions and transactions to his friend and long-time broker, HOBSON.  HOBSON, in turn, used the Inside Information to execute profitable securities trades for himself, for MACIOCIO, and for other clients of HOBSON’s.  

HOBSON was arrested this morning in Providence, Rhode Island, and was presented today before a magistrate judge in Providence.  The case against HOBSON and MACIOCIO is before United States District Judge Laura Taylor Swain.  On Friday, May 20, 2016, MACIOCIO pled guilty before United States Magistrate Judge Barbara Moses to an Information charging him with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and securities fraud.           

In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against HOBSON and MACIOCIO.

U.S. Attorney Preet Bharara said:  “As alleged, Michael Maciocio abused his position at a major pharmaceutical company to feed insider information to his friend and broker, David Hobson, who allegedly helped both benefit from trades based on that illegal edge.  Unfortunately, illegal insider trading remains a blight on our securities markets and we will continue to work with the FBI to investigate and prosecute it.”

FBI Assistant Director-in-Charge Diego Rodriguez said:  “Having material, nonpublic information on public companies is a trusted privilege that should be used to carry out business matters, not used as advantage on which to trade and profit. As alleged, Michael Maciocio used his position at a pharmaceutical company to share nonpublic information with his friend and long-time broker, David Hobson. Hobson allegedly used traded on the information, for both Maciocio and other clients, profiting all parties $370,000.  Keeping our markets fair for all investors remains a top priority for the FBI and we will continue to work with our law enforcement partners to bring charges against those who use illegal and unfair advantages in our securities markets.”

According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Information and Indictment[1], and statements made in court proceedings:

From in or about May 2008 through in or about April 2014, MACIOCIO and HOBSON participated in a scheme to commit insider trading in advance of and in connection with acquisitions and transactions under consideration by the Pharma Company.  MACIOCIO and HOBSON were childhood friends and HOBSON had served as MACIOCIO’s investment adviser and broker for many years.

MACIOCIO learned about the impending transactions through his role as a Master Planner in the Active Pharmaceutical Ingredient Supply Chain Group at the Pharma Company.  In that role, MACIOCIO was tasked with evaluating manufacturing demands and capacity within the Pharma Company and was consulted about potential acquisitions to assist in determining whether the Pharma Company would be able to manufacture any new product in-house.  Although MACIOCIO was not typically provided with the name of the target acquisition, he used the Inside Information he received – including the Pharma Company’s code name of the acquisition, the drug indication, the dosage, the phase of any clinical trial, and the chemical structure of the drug – to uncover the true identity of the target company.  He was at times aided in this task by HOBSON.

Having learned the Inside Information about these impending transactions, MACIOCIO, in breach of fiduciary duties and other duties of trust and confidence owed to the Pharma Company, traded on his own behalf and tipped HOBSON so that HOBSON could use the information to trade for both himself and for MACIOCIO.  HOBSON also used the Inside Information to trade in other of his clients’ accounts, first at Brokerage Firm-1 and later at Brokerage Firm-2.

HOBSON used the Inside Information that he received from MACIOCIO to make profitable trades in, among other securities: Medivation, Inc., Ardea Biosciences, Inc., and Furiex Pharmaceuticals, Inc.  As a result of the scheme, HOBSON reaped approximately $180,000 in ill-gotten gains for himself, $40,000 for MACIOCIO, and nearly $150,000 for certain of HOBSON’s other clients.  

*                *                *

HOBSON, 47, is charged with one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, and two counts of securities fraud.  Count One carries a maximum sentence of five years in prison.  Counts Two through Four each carry a maximum sentence of 20 years in prison.  The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. 

On May 20, 2016, MACIOCIO, 46, pled guilty before Judge Moses to one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, and two counts of securities fraud.  Count One carries a maximum sentence of five years in prison.  Counts Two through Four each carry a maximum sentence of 20 years in prison.  The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.  

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences for the defendants will be determined by the judge.

Mr. Bharara praised the work of the FBI, and thanked the SEC.

The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Aimee Hector and Rebecca Mermelstein are in charge of the prosecution.  

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

CHICAGO — The owner of a Lombard weight-loss center and a Burr Ridge physician have been charged with conspiracy and other crimes related to dispensing appetite-suppressant drugs without a legitimate medical purpose.

According to a 17-count federal indictment, MICHAEL JENNINGS, the owner of Results Weight Loss Center, made cash payments to the doctor in exchange for using the physician’s federal registration number to order and dispense hundreds of thousands of dosages of Phendimetrazine and Phentermine.  The physician, WILLIAM MIKAITIS, was rarely present at the weight-loss center, according to the indictment.  Instead, Jennings, who is not a doctor and lacks medical training, identified himself to patients as “Dr. Mikaitis” and ordered the prescriptions without conducting meaningful examinations or tests, the indictment states.

The indictment alleges that between approximately February 2013 and January 2015, Jennings made cash deposits of approximately $75,000 into Mikaitis’ bank account.  The indictment seeks a total forfeiture from the defendants of approximately $790,000 in illegal proceeds from the scheme.

The indictment was returned yesterday in federal court in Chicago.  It charges Jennings, 48, of Naperville, and Mikaitis, 72, of Burr Ridge, with one count of conspiracy to distribute controlled substances outside the course of professional practice and without a legitimate medical purpose, seven counts of distributing controlled substances outside the course of professional practice and without a legitimate medical purpose, seven counts of dispensing prescription drugs without a valid prescription, and one count of conspiracy to conduct a financial transaction involving the proceeds of unlawful activity.  The counts are punishable by a maximum combined sentence of 95 years in prison.

Mikaitis, who maintains a medical practice in Lockport, is also charged individually with one count of engaging in a monetary transaction involving criminally derived property valued at more than $10,000.  This count carries a maximum sentence of ten years in prison.

Jennings and Mikaitis will be arraigned before U.S. District Judge Virginia M. Kendall on June 9, 2016, at 9:30 a.m.

The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.  The U.S. Food and Drug Administration’s Chicago Office and the Naperville Police Department assisted in the investigation, which was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).  

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. 

The government is represented by Assistant U.S. Attorney Matthew Schneider.

Indictment

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport returned an indictment today charging DERRICK WHITE, also known as “Fly,” 51, of Hamden, MALCOLM HAYNES, also known as “Black,” 25, of New Haven, and HOWARD BOOKERT, 18, of Hamden, with one count of armed robbery of a postal employee.  The indictment also charges WHITE and HAYNES with one count of armed bank robbery.

The indictment alleges that, on April 21, 2016, WHITE, HAYNES, and BOOKERT entered the U.S. Post Office located at 75 Farwell Avenue in West Haven, stole money and other government property, and put the life of a postal employee and others in jeopardy by the use of a dangerous weapon.

The indictment further alleges that, on April 21, 2016, WHITE, HAYNES, and another person known to the grand jury used force, violence and intimidation to rob $9,287 from a branch of Wells Fargo Bank located at 1647 Whitney Avenue in Hamden, putting in jeopardy the life of a person by the use of a dangerous weapon.

WHITE and BOOKERT have been detained since April 21, 2016, when they were apprehended in New Haven and arrested on related state charges.  HAYNES has been detained since his arrest on related state charges on May 23, 2016.

If convicted, the defendants face a maximum term of imprisonment of 25 years and a fine of up to $250,000 on each count.

U.S. Attorney Daly stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the West Haven Police Department, Hamden Police Department, New Haven Police Department, Federal Bureau of Investigation, and U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.

            WASHINGTON - Hassain Smart, 20, of Washington, D.C., was sentenced today to 33 years in prison on charges stemming from sexual assaults he committed against two women in an alley in Northwest Washington, U.S. Attorney Channing D. Phillips announced.

            Smart pled guilty in December 2015, in the Superior Court of the District of Columbia, to charges of first-degree sexual abuse while armed, first-degree sexual abuse with aggravating circumstances, robbery while armed, and kidnapping while armed.  The plea, which was contingent upon the Court’s approval, called for a prison term of 27 to 33 years.  The Honorable Jennifer Anderson accepted the plea today and sentenced the defendant accordingly. Following his prison term, Smart will be placed on supervised release for the rest of his life. Smart also will be required to register as a sex offender for the remainder of his life.

            According to the government’s evidence, at about 1 a.m. on June 25, 2015, the two victims began to open the door to their home in the unit block of T Street NW when Smart, a stranger, approached from behind and brandished what appeared to be a black handgun.  He led both women through a dark alley into a muddy area between a fence and a vacant house under construction.  Smart raped both women in the alley while continuing to brandish the weapon.

            After the sexual assaults, Smart refused to allow the victims to leave until they surrendered their cell phones and a debit card to him.  When he finally left, the victims contacted law enforcement, and detectives from the Sexual Assault Unit of the Metropolitan Police Department (MPD) responded and immediately began an investigation.

            An MPD patrol officer in the Seventh District spotted the defendant, who matched the description given by the victims. Smart was arrested after police found the victims’ cell phones and debit card and the weapon in his possession.  Smart then confessed to kidnapping, robbing, and sexually assaulting both women while brandishing the weapon.

            After reporting the assault to the police, the victims were transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE), which included collection of forensic evidence.  Bode Technologies later conducted DNA testing and concluded that the major male profile found on intimate swabs from a victim’s SANE kit matched the DNA profile of the defendant.

            On April 2, 2016, while incarcerated pending sentencing, Smart attempted to escape from the Correctional Treatment Facility (CTF) in Washington, D.C., but his escape attempt was thwarted by correctional officers.  During his attempt, Smart first jumped over the jail recreation yard’s inner perimeter fence.  After jumping that fence, he pulled a white bed sheet that he had hidden in his pants leg. Smart spent several minutes surveying the outer perimeter fence while holding the sheet, until he was ordered by correctional officers to drop the sheet and lay on the ground.  On May 13, 2016, Smart pled guilty to a charge of escape. He was sentenced today to six months in prison for that offense, to run consecutively to his other prison sentence.

            In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit, the Fifth and Seventh Police Districts, and crime scene technicians.  He also expressed appreciation to Bode Technologies. He also commended those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan and Paralegal Specialists Tierra Nanches and Jason Manuel.  Finally, he acknowledged the efforts of Assistant U.S. Attorneys Amy Zubrensky and Julianne Johnston, who prosecuted the case.

U.S. Attorney Polite praised the work of the United States Diplomatic Security Service in investigating this matter.  Assistant United States Attorney Irene González is in charge of the prosecution.

NEWARK, N.J. – Four people have been arrested and charged with stealing more than $900,000 from a New Jersey-based trucking company, U.S. Attorney Paul J. Fishman announced today.

Lisa Popewiny, 53, of Clifton, New Jersey, and brothers Angel D. Vidal, 24, and Angel Gabriel Vidal, 22, of Paterson, New Jersey, and Miguel Vidal, 22, of Jersey City, New Jersey, are each charged by complaint with one count of wire fraud. Federal authorities arrested Popewiny, Angel D. Vidal and Angel Gabriel Vidal on June 2, 2016. Miguel Vidal was arrested today. All four defendants appeared before U.S. Magistrate Judge Stephen C. Mannion in Newark federal court; Miguel Vidal appeared today and the remaining defendants appeared yesterday. 

According to the complaint:

Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc, a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, Angel D. Vidal, Angel Gabriel Vidal, and Miguel Vidal – a former truck driver for the Company – allegedly engaged in a scheme to defraud the company out of $920,380. 

Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees. Angel D. Vidal, Angel Gabriel Vidal, and Miguel Vidal then converted the paychecks, many of which were deposited into their bank accounts and then funneled out in cash. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, six paychecks remained that turned out to be fraudulently issued. Further investigation revealed that Popewiny input false hours for at least 12 different individuals.

The count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.

U.S. Attorney Fishman credited criminal investigators in the U.S. Attorney’s Office, postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner, and members of the U.S. Marshals’ Fugitive Task Force, under the direction of U.S. Marshal Juan Mattos Jr., with the investigation leading to the arrests and charges.

The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The government is represented by Assistant U.S. Attorney Cari Fais of the Special Prosecution Division in Newark.finkle_trucking_complaint.pdf

Deputy AG Sally Yates, EOUSA Director Monty Wilkinson recognize select employees at event in Washington, D.C.
WASHINGTON – An Assistant U.S. Attorney with the Southern District of Mississippi along with two DOJ Civil Rights Division attorneys, a DOJ Civil Rights Division Paralegal, and two FBI agents were among 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony held in Washington D.C. on June 1, 2016.

The Southern District of Mississippi was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”

“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.

The award for “Superior Performance by a Litigative Team” was given to Assistant U.S. Attorney Glenda R. Haynes, DOJ Trial Attorney Sheldon L. Beer, Deputy Chief Paige M. Fitzgerald of the DOJ Civil Rights Division, Paralegal Specialist Steven Harrell of the DOJ Civil Rights Division, FBI Agent Bradley Hentschel, and FBI Agent Robert H. Ruby for their hard work on U.S v. Dedmon case.

The Dedmon case was a federal hate crime case involving an assault which culminated in the death of James Craig Anderson, an African-American man, in the summer of 2011. The case was historic as it marked the first time that the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act had been used in a case where the defendants’ actions resulted in a victim’s death.

“We are pleased that the U.S. Department of Justice has recognized this trial team for their outstanding contribution to the Department and its mission,” said U.S. Attorney Davis.

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROMAN KITROSER was sentenced in Manhattan federal court to 25 years in prison for conspiring to distribute heroin, cocaine, MDMA, crack cocaine, and marijuana.  KITROSER, who pled guilty to one count of narcotics conspiracy on November 2, 2015, was also found to have possessed dangerous weapons in connection with the conspiracy, including firearms and hand grenades.  KITROSER pled guilty before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence. 

U.S. Attorney Preet Bharara stated:  “In Roman Kitroser’s drug dealing operations, customers could literally pick their poison: he trafficked in heroin, cocaine, crack, MDMA, and marijuana.  To protect his illicit trade, Kitroser armed himself with an arsenal of dangerous weapons, including guns, silencers and even hand grenades.  Thanks to the work of the DEA, NYPD and New York State Police, Kitroser’s dangerous business is finished.”

According to the Indictment and other documents filed in federal court, statements made at various proceedings in this case, and evidence presented at the sentencing hearing:

From December 2013, to December 2014, KITROSER conspired to distribute heroin, cocaine, and marijuana as a member of a drug trafficking organization.  In connection with his arrest, KITROSER was found in possession of nine firearms, two silencers, high-capacity magazines, and a large press used to form loose narcotics into kilogram-sized bricks.  Law enforcement officers also seized more than $2 million, as well as two hand grenades, in connection with the investigation.

*                *                *

In addition to the prison sentence, KITROSER, 39, of Brooklyn, New York, was sentenced to five years of supervised release.

United States Attorney Bharara praised the investigative work of the Drug Enforcement Administration, the New York City Police Department, and the New York State Police.

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Megan Gaffney and Alex Rossmiller are in charge of the prosecution.

PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 72 months’ imprisonment on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.

United States District Judge Mark R. Hornak imposed the sentence on Devonte White, 23, of Pittsburgh, PA.

According to information presented to the court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Devonte White was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.

Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.

Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Devonte White.

SAN JOSE – Robert Saunders was sentenced to twelve months in prison and ordered to pay $124,003.79 in restitution for attacking a corporate computer network, announced United States Attorney Brian J. Stretch and FBI Special Agent in Charge John F. Bennett.

Saunders, 30, of San Jose, pleaded guilty on February 24, 2016, to one count of intentional damage to a protected computer. As part of his plea agreement, Saunders admitted he intentionally accessed the computer network of a Silicon Valley corporation based in San Mateo that provides integrated business management solutions over a web-based architecture.  On numerous occasions between July 26, 2012, and August 31, 2012, Saunders accessed the computer network of the publicly-traded corporation without authorization and caused losses with an aggregate value of approximately $189,000.

Saunders admitted that on one occasion he changed information for a demonstration account belonging to a retail business customer of the corporation and that his actions prevented potential customers from accessing the test account. On other occasions, Saunders obtained information through his unlawful access to a database and posted offensive content in the corporation’s test account. The corporation incurred approximately $189,000 in costs responding to the offense and restoring its systems.
           
Saunders was originally indicted by a federal grand jury on April 30, 2014. A Second Superseding Indictment was filed on February 24, 2016, charging him with one count of Intentional Damage to a Protected Computer, in violation of 18 U.S.C. § 1030(a)(5)(A) and (c)(4)(B)(i); four counts of Obtaining Information from a Protected Computer without Authorization, in violation of 18 U.S.C. § 1030(a)(2)(C) and (c)(2)(B)(i); and two counts of Possession of a Firearm in Interstate Commerce while Unlawfully Using A Controlled Substance, in violation of 18 U.S.C. § 922(g)(3).  Pursuant to his plea agreement, he pleaded guilty to the intentional damage to a protected computer charge. 

The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge on June 1, 2016. Judge Koh also sentenced the defendant to a three-year period of supervised release and ordered him to forfeit property seized during the execution of a search warrant at his apartment, including computer equipment used to facilitate the offense. FBI agents arrested the defendant on May 8, 2014, in Portland, Oregon. On September 12, 2014, he was ordered released on bond and remains out of custody. The defendant will begin serving the sentence on July 29, 2016.

Assistant U.S. Attorneys Michelle J. Kane and Susan Knight are prosecuting the case with the assistance of Melissa Dorton and Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

In Del Rio today, 50-year-old Carl Wayne Wiley was sentenced to 571 months in federal prison for attempted murder of a Border Patrol agent announced United States Attorney Richard L. Durbin, Jr., Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol, and Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.

In addition to the prison term, United States District Judge Ivan L.R. Lemelle ordered that Wiley be placed on supervised release for three years after completing his prison term. 

In February 2016, a jury convicted Wiley of one count of attempting to kill one or more United States Border Patrol Agents who were engaged in the performance of their official duties; one count of assaulting, resisting, opposing, impeding, or interfering with one or more United States Border Patrol Agents using a deadly or dangerous weapon; two counts of using and discharging a .45 caliber Ruger revolver during and in relation to the commission of the aforementioned crimes of violence; and, one count of assaulting, resisting, or impeding United States Border Patrol Agents.

According to court records, in 2014, Wiley was wanted on State charges for Murder and Attempted Murder in Midland, TX, and was fleeing prosecution.  In the early morning hours of June 29, 2014, Wiley was spotted by Border Patrol agents in Sanderson, TX.  Wiley took the agents on a high speed pursuit before crashing his vehicle.  He fled on foot into the brush and avoided arrest by stealing an ATV, then a pickup truck, as well as several firearms from nearby ranches.

On June 30, 2014, an off duty Comstock Border Patrol Agent observed Wiley traveling East on Highway 90 near the Comstock Border Patrol checkpoint.  Approximately four miles north of Comstock, an agent attempted to conduct a vehicle stop.  When the agent activated the emergency equipment, Wiley crashed through a ranch fence and continued driving across the pasture further into the ranch.  The vehicle came to a stop after colliding with a tree and Wiley absconded on foot into the brush. 

Wiley led responding agents on a foot pursuit and shot at one agent who was closing in on him.  As he continued to evade agents, Wiley fired his weapon again at a group of approaching agents. When the agents were eventually able to surround Wiley, he ultimately dropped his weapon and was arrested.

This case was investigated by special agents of the Federal Bureau of Investigation with assistance from the United States Border Patrol, Val Verde Sheriff’s Office and the Midland Police Department.  Assistant United States Attorneys Ralph Paradiso and Katherine Griffin prosecuted this case on behalf of the Government.

TULSA, Okla.—Dustin Scott Ross, 22, Fort Gibson, Oklahoma, was sentenced to 52 months in prison for robbing the Arvest Bank on 4548 East 51^st Street and the CVS Pharmacy on 4107 South Harvard Avenue, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. Chief United States District Court Judge Gregory K. Frizzell also sentenced Ross to three years of supervised release following his prison sentence and ordered him to pay restitution to the victims of his crimes.

On November 4, 2015, Ross robbed the Arvest bank by handing a teller a threatening note. After the bank robbery, Ross was quickly identified because of a tip from Crime Stoppers. On November 19, 2015, Ross robbed the CVS using another threatening note. He was quickly apprehended by the Tulsa Police Department that day.

Judge Frizzell also sentenced Ross to eight months in prison, to be served consecutive to his robbery sentence, for violating the conditions of his supervised release. After release from the Federal Bureau of Prisons, offenders are often placed on supervised release, which imposes certain conditions and restrictions. The primary purpose of supervised release is to help recently released offenders reintegrate back into society. Ross was on supervised release for Bank Fraud when he committed the two robberies. 

This case was investigated by the Tulsa Police Department and the Federal Bureau of Investigation.  Assistant United States Attorney Neal C. Hong prosecuted the case.

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Preet Bharara, the United States Attorney for the Southern District of New York, announced today the return of a stolen 11^th or 12^th Century bronze statue of Ganesha to the Republic of India, pursuant to an agreement between the U.S. Attorney’s Office for the Southern District of New York and the Toledo Museum of Art.  The Ganesha was returned today along with several other stolen antiquities at a repatriation ceremony with Indian Prime Minister Narendra Modi and U.S. Attorney General Loretta Lynch at Blair House in Washington, D.C.

Manhattan U.S. Attorney Preet Bharara said: “A decade ago, a valued piece of India’s cultural heritage was stolen and sold in the United States.  We are proud to have played a role in returning this treasure to the Indian people, and reaffirm our commitment to ensuring that the United States does not become a marketplace for stolen art and antiquities.”

The statue of Ganesha, also known in Tamil Nadu as Vinayagar, is a bronze statue dating from the Chola dynasty period (1080-1150 A.D.).  The Ganesha was stolen from the Sivan temple at Sree Puranthan Village in the Ariyalur District of Tamil Nadu in 2006, and obtained by Subhash Kapoor, an antiquities dealer in Manhattan.  Kapoor has been charged with various offenses by both Indian authorities and the New York County District Attorney’s Office for his alleged involvement in trafficking in stolen antiquities, and is currently awaiting trial in Tamil Nadu.  Kapoor sold the Ganesha to the Toledo Museum of Art (the “Museum”) in 2006.

Working with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), the Office identified the Ganesha as stolen, and contacted the Museum.  Upon being presented with the evidence of the Ganesha’s illicit origin, the Museum voluntarily agreed to turn over the Ganesha to HSI for return to the Republic of India.

Mr. Bharara thanked HSI for their outstanding work in connection with this matter.  He also thanked the Manhattan District Attorney’s Office for their assistance.  Mr. Bharara also thanked the Toledo Museum of Art for their willingness to voluntarily return the Ganesha to the Republic of India.

The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit.  Assistant U.S. Attorney Alexander J. Wilson is in charge of the case.

ALBUQUERQUE – Rolando Cantu, 40, of Hobbs, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 151 months in federal prison followed by five years of supervised release for his conviction on a methamphetamine trafficking charge. 

Cantu was one of five defendants charged as the result of an investigation primarily targeting a drug trafficking organization operating in Lea County, N.M., allegedly headed by co-defendant Leroy Castillo, 34, of Hobbs, N.M.  The investigation was led by the FBI and Lea County Drug Task Force (LCDTF) with assistance from the DEA and New Mexico State Police.  It was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.

Cantu was arrested in July 2014, and charged in a seven-count indictment filed in June 2014.  The indictment also charged co-defendants Castillo, Joe Padilla, 34, of Hobbs, Mario Flores, 30, of Artesia, N.M., and Anthony Pisana, 30, of Roswell, N.M.  Count 1 charged the four men with participation in a methamphetamine trafficking conspiracy from Feb. 2014 through May 2014, in Lea County.  Counts 2 and 3 charged certain defendants with possession of methamphetamine with intent to distribute in Eddy and Lea Counties in March 2014, and Counts 4 through 7 charged certain defendants with using telephones to facilitate drug trafficking crimes in Feb., March and April 2016. 

Cantu pled guilty on March 24, 2015, to County 3 of the indictment charging him with possession of methamphetamine with intent to distribute.  In his plea agreement, Cantu admitted that on March 8, 2014, law enforcement officers seized 76.2 grams of methamphetamine from inside a truck parked at his residence.  Cantu further admitted that he intended to distribute the methamphetamine that was found inside the truck. 

With the exception of Castillo, all defendants charged in this case have pleaded guilty.  Castillo has yet to be arrested and is considered a fugitive.  Individuals with information regarding the whereabouts of Castillo are asked to call the FBI at 505-622-6001.  Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.

This case was investigated by the Las Cruces, Roswell and Albuquerque offices of the FBI and the LCDTF, with assistance from the Las Cruces office of the DEA, the New Mexico State Police and the Phoenix Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Terri L. Abernathy and Shaheen P. Torgoley.

The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force.  The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988.  HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.