HOUSTON - An international businessman and his wife have been arrested and charged with conspiracy and international parental kidnapping, announced U.S. Attorney Ryan K. Patrick.

Carlos Otavio Guimaraes, 67, and Jemima Guimaraes, 65, were arrested at Miami, Florida, International Airport early this morning as they arrived on a flight from Brazil. They are set to make their initial appearances before U.S. Magistrate Judge John J. O’Sullivan at 1:30 p.m. today in Miami, at which time the government expects to request their continued detention pending further criminal proceedings.  

The criminal complaint filed in Houston alleges they and their daughter - Marcelle Guimaraes, 39 - conspired to illegally retain the child in Brazil. The mother and minor child had traveled to Brazil to attend a family event in July 2013, but were supposed to return to Houston no later than July 20, 2013, according to the charges. Marcelle Guimaraes is also charged but not as yet in custody.

As of the filing of the complaint, the child has not returned to the United States.  

If convicted, each faces up to five years in federal prison for the conspiracy as well as a maximum of three years if convicted of the kidnapping charge.

The FI conducted the investigation. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.

A criminal complaint is a formal accusation of criminal conduct, not evidence.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN G. KOUKOURAS, 40, of Eugene, Oregon, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by three years of supervised release, for trafficking marijuana.  Judge Arterton also ordered KOUKOURAS to pay a $4,000 fine.

According to court documents and statements made in court, in the summer of 2017, KOUKOURAS and William Reyes, of Stamford, utilized a residence located at 40 Guernsey Hill Road in Lagrangeville, New York, to grow, process and distribute marijuana.  On July 26, 2017, investigators executed a federal search warrant at the Lagrangeville residence and seized approximately 140 marijuana plants and equipment used to grow, process and distribute marijuana.

On September 14, 2017, KOUKOURAS was arrested at 720 Brookside Drive in Eugene.  On that date, investigators searched the residence and seized approximately 50 marijuana plants and equipment used to grow and process marijuana.

The investigation also revealed that Reyes was being supplied with large quantities of marijuana by Gustavo Garcia, of Queens, New York.  In July 2017, Garcia delivered approximately 40 pounds of marijuana to Reyes in exchange for approximately $80,000.

On November 15, 2017, KOUKOURAS pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana.

Judge Arterton ordered KOUKOURAS to report to prison on March 13, 2018.  He is released on a $25,000 bond.

Reyes and Garcia have pleaded guilty to related charges and await sentencing.

This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police.  The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.

LAS VEGAS, Nev. – A federal indictment was unsealed today charging 36 individuals for their alleged roles in the Infraud Organization, an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.

Following the return of a nine-count superseding indictment by a Las Vegas, Nevada, grand jury alleging racketeering conspiracy and other crimes, federal, state, local, and international law enforcement authorities arrested 13 defendants from the United States and six countries: Australia, the United Kingdom, France, Italy, Kosovo and Serbia.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada, and Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.

“Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,” said Acting Assistant Attorney General Cronan.  “As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale.  Its members allegedly caused more than $530 million in actual losses to consumers, businesses, and financial institutions alike—and it is alleged that the losses they intended to cause amounted to more than $2.2 billion.  The Department of Justice refuses to allow these cybercriminals to use the perceived anonymity of the Internet as a shield for their crimes.  We are committed to working closely with our international counterparts to identify, investigate, and bring to justice the perpetrators of these crimes, wherever in the world they operate.”

“The U.S. Attorney’s Office is steadfastly committed to protecting America’s national and economic security,” said U.S. Attorney Elieson. “Criminals cannot hide behind their computer screens. We are working vigilantly with American and international law enforcement partners to identify and disrupt transnational cybercrime organizations, such as the Infraud Organization.”

“Criminal cyber organizations like Infraud threaten not just U.S. citizens but people in every corner of the globe,” said HSI Acting Executive Associate Director Benner. “The actions of computer hackers and identity thieves not only harm countless innocent Americans, but the threat they pose to our financial system and global commerce cannot be overstated.  The criminals involved in such schemes may think they can escape detection by hiding behind their computer screens here and overseas, but as this case shows, cyberspace is not a refuge from justice.  HSI will continue working with our law enforcement partners in this country and around the world to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”

According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” aka “Rector,” aka “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for carding—purchasing retail items with counterfeit or stolen credit card information—on the Internet.  Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods.  It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members.

According to the indictment, Infraud members held defined roles within the organization’s hierarchy.  “Administrators” managed day-to-day operation of and strategic planning for the organization, approved and monitored membership, and meted out punishments and rewards to members.  “Super Moderators” oversaw and administered specific subject-matter areas within their expertise.  “Moderators” moderated one or two specific sub-forums within their areas of subject-matter expertise.  “Vendors” sold illicit products and services to Infraud members.  Finally, “VIP Members” and “Members” used the Infraud forum to gather information and to facilitate their criminal activities.  As of March 2017, there were 10,901 registered members of the Infraud Organization. 

During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $530 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked. 

The defendants indicted for their alleged roles in the Infraud Organization’s transnational racketeering conspiracy include:

• Svyatoslav Bondarkeno of Ukraine;
• Amjad Ali aka “Amjad Ali Chaudary,” aka “RedruMZ,” aka “Amjad Chaudary,” 35, of Pakistan;
• Roland Patrick N’Djimbi Tchikaya aka “Darker,” aka “dark3r.cvv,” 37, of France;
• Miroslav Kovacevic aka “Goldjunge,” 32, of Serbia;
• Frederick Thomas aka “Mosto,” aka “1stunna,” aka “Bestssn,” 37, of Alabama;
• Osama Abdelhamed aka “MrShrnofr,” aka “DrOsama,” aka “DrOsama1,” 27, of Egypt;
• Besart Hoxha aka “Pizza,” 25, of Kosovo;
• Raihan Ahmed aka “Chan,” aka “Cyber Hacker,” aka “Mae Tony,” aka “Tony,” 26, of Bangladesh;
• Andrey Sergeevich Novak aka “Unicc,” aka “Faaxxx,” aka “Faxtrod” of the Russian Federation;
• Valerian Chiochiu aka “Onassis,” aka “Flagler,” aka “Socrate,” aka “Eclessiastes,” 28, of Moldova;
• John Doe #8 aka “Aimless88;”
• Gennaro Fioretti aka “DannyLogort,” aka “Genny Fioretti,” 56, of Italy;
• Edgar Rojas aka “Edgar Andres Viloria Rojas,” aka “Guapo,” aka “Guapo1988,” aka “Onlyshop,” 27, of Australia;
• John Telusma aka “John Westley Telusma,” aka “Peterelliot,” aka “Pete,” aka “Pette,” 33, of Brooklyn, New York;
• Rami Fawaz aka “Rami Imad Fawaz,” aka “Validshop,” aka “Th3d,” aka “Zatcher,” aka “Darkeyes,” 26, of Ivory Coast;
• Muhammad Shiraz aka “Moviestar,” aka “Leslie” of Pakistan;
• Jose Gamboa aka “Jose Gamboa-Soto,” aka “Rafael Garcia,” aka “Rafael101,” aka “Memberplex2006” aka “Knowledge,” 29, of Los Angeles, California;
• Alexey Klimenko aka “Grandhost,” 34, of Ukraine;
• Edward Lavoile aka “Eddie Lavoie,” aka “Skizo,” aka “Eddy Lavoile,” 29, of Canada;
• Anthony Nnamdi Okeakpu aka “Aslike1,” aka “Aslike,” aka “Moneymafia,” aka “Shilonng,” 29, of the United Kingdom;
• Pius Sushil Wilson aka “FDIC,” aka “TheRealGuru,” aka “TheRealGuruNYC,” aka “RealGuru,” aka “Po1son,” aka “1nfection,” aka “1nfected,” 31, of Flushing, New York;
• Muhammad Khan aka “CoolJ2,” aka “CoolJ,” aka “Secureroot,” aka “Secureroot1,” aka “Secureroot2,” aka “Mohammed Khan,” 41, of Pakistan;
• John Doe #7 aka “Muad’Dib;”
• John Doe #1 aka “Carlitos,” aka “TonyMontana;”
• David Jonathan Vargas aka “Cashmoneyinc,” aka “Avb,” aka “Poony,” aka “Renegade11,” aka “DvdSVrgs,” 33, of San Diego, California;
• John Doe #2;
• Marko Leopard aka “Leopardmk,” 28, of Macedonia;
• John Doe #4 aka “Best4Best,” aka “Wazo,” aka “Modmod,” aka “Alone1,” aka“Shadow,” aka “Banderas,” aka “Banadoura;”
• Liridon Musliu aka “Ccstore,” aka “Bowl,” aka “Hulk,” 26, of Kosovo;
• John Doe #5 aka “Deputat,” aka “Zo0mer;”
• Mena Mouries Abd El-Malak aka “Mina Morris,” aka “Source,” aka “Mena2341,” aka “MenaSex,” 34, of Egypt; and
• John Doe #6 aka “Goldenshop,”aka “Malov.”

In addition, Novak and “Goldenshop” are charged with three counts each and “Deputat” and Musliu one count each of possession of 15 or more counterfeit and unauthorized access devices.

The superseding indictment is the result of an investigation conducted by the Las Vegas Office of Homeland Security Investigations; the Henderson, Nevada, Police Department; the Criminal Division’s Organized Crime and Gang Section; and the U.S. Attorney’s Office for the District of Nevada.

The international operation to dismantle the Infraud Organization would have been impossible without the significant efforts and timely cooperation of the Justice Department’s Office of International Affairs and International Organized Crime Intelligence and Operations Center; Interpol Rome; Interpol Tirana; the Italian National Police (Postal and Communications Police); the Australian Federal Police  and the International Crime Cooperation Central Authority, Australian Government Attorney-General’s Department; the U.S. Diplomatic Security Service, Regional Security Office at U.S. Embassy Tirana, Albania; the City of London Police, DCPCU; the French Ministry of Justice, the Paris Prosecutor, L’Office Central de Lutte contre la Criminalité liée aux Technologies de l’Information et de la Communication; the judicial and police authorities of the Grand Duchy of Luxembourg; the Directorate for Organized Crime Investigation, Sector for Cyber Crime Investigation; the Basic Prosecution Office Pristina, Kosovo; and the Ministry of Justice of the Republic of Kosova, Department for International Legal Cooperation and the Special Prosecution Office for High-Tech Crime of the Republic of Serbia. 

The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Trial Attorneys Kelly Pearson and Chimaobim Nwachukwu of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Chad W. McHenry of the District of Nevada are prosecuting the case.

# # #

ALBANY, NEW YORK – Joshua Lozo, age 36, of Troy, New York, was sentenced today to 120 months in prison for receiving and possessing child pornography.

The announcement was made by 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 (FBI).

As part of his October 16, 2017 guilty plea, Lozo admitted that between December 1, 2015 and December 14, 2016, he used the Internet and file-sharing software to download child pornography videos and still images.  Lozo possessed about 25 child pornography videos and approximately 350 still images of child pornography. 

United States District Judge Mae A. D’Agostino also imposed a lifetime term of supervised release, which will start after Lozo is released from prison.  As a result of his conviction, Lozo will be required to register as a sex offender after leaving prison. 

This case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Rick Belliss.

This case is being 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), and is designed to marshal 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.

NEWNAN, Ga. - Lloyd Christopher Young has been sentenced to 10 years in prison for receipt and possession of child pornography.  Most of the images were of children between five to twelve years old, but Young collected pictures of infants as well.

“The defendant downloaded and viewed disgusting videos and pictures of young children being sexually abused,” said U.S. Attorney Byung J. “BJay” Pak. “His conduct helped further the sexual exploitation of children and cause irreparable harm to these young victims, all for his personal pleasure.”

“Each time Young viewed the unconscionable images of innocent young children, they were re-victimized,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “We strive every day to protect our children and will continue to use every law enforcement resource available to identify and prosecute individuals who exploit them in such a manner.”

According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, the FBI discovered that Young was accessing an underground child pornography website.  They then executed a search warrant at Young’s home in Fayetteville, Georgia, and seized Young’s computer and USB drive, which contained over 950 videos and images of child pornography.  The majority of the children depicted in these images were between five to twelve years old.  Some of the images, however, were of infants.  When interviewed by law enforcement, Young admitted that he had specifically searched for and downloaded child pornography.

Lloyd Christopher Young, 32, of Fayetteville, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to 10 years in prison, to be followed by lifetime supervised release.  He must also register as a sex offender as a condition of his supervised release.  Young was found guilty by a jury on November 7, 2017.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Jolee Porter prosecuted the case.

This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

BROWNSVILLE, Texas – A 21 year old Brownsville resident has been ordered to federal prison for methamphetamine trafficking, announced Acting U.S. Attorney Ryan K. Patrick. Ernesto Alonso Valdez pleaded guilty Aug. 31, 2017.

Today, U.S. District Judge Andrew Hanen sentenced Valdez to a total of 132 months imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, Judge Hanen stated “So take this to heart. Try to turn this into a positive. You have one advantage that you are young.”

On Nov. 24, 2016, Ernesto Alonso Valdez arrived at the Gateway port of entry in Brownsville driving a Chevrolet HHR. At the time, he claimed to be en route to visit his girlfriend at the hospital. However, agents soon discovered 4.28 kilograms of methamphetamine concealed in the back seats and rear bumper of the vehicle. A small quantity of narcotics was also found in his shoe during a personal search. Valdez admitted knowing the personal use in his shoe was cocaine or methamphetamine.

Valdez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Elena Salinas prosecuted the case.

A Latvian man pleaded guilty yesterday for participating in a lucrative “scareware” hacking scheme that targeted visitors to the Minneapolis Star Tribune’s website. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division; United States Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Richard T. Thornton of the Federal Bureau of Investigation-Minneapolis Field Office made the announcement.

“With this guilty plea, Mr. Sahurovs has taken responsibility for perpetrating a malicious cyber-fraud scheme on visitors of the Minneapolis Star Tribune website,” said U.S. Attorney Greg Brooker. “This Office along with our partners at the FBI are committed to pursuing and prosecuting cyber criminals who use sophisticated schemes such as this to victimize internet users.”

Richard Thornton, Special Agent in Charge at the FBI's Minneapolis Division, added that, “this particular scheme was dangerous on several levels, especially the use of a website belonging to a media institution. In this case, there were thousands of victims who lost millions of dollars, but the use of the media internet site is concerning because it has the potential to undermine the public's access to information, a pillar of American democracy. The FBI is committed to identifying these and other cyber criminals, and, with the help of our domestic and foreign partners, will work tirelessly to catch them no matter where they hide.”

PETERIS SAHUROVS aka “Piotrek” aka “Sagade,” pleaded guilty to one count of conspiracy to commit wire fraud before District Judge Ann D. Montgomery of the District of Minnesota.  SAHUROVS was arrested on a District of Minnesota indictment in Latvia in June of 2011, but was released by a Latvian court and later fled. In November of 2016, SAHUROVS was located in Poland and apprehended by Polish law enforcement and extradited to the United States in June of 2017. SAHUROVS was at one time the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction. He will be sentenced on June 6.

According to admissions made in connection with his plea, from at least May 2009 to June 2011, SAHUROVS operated a “bullet-proof” web hosting service in Latvia, through which he leased server space to customers seeking to carry out criminal schemes without being identified or taken offline. The defendant knew that his customers were using his servers to perpetrate criminal schemes, including the transmission of malware, fake anti-virus software, spam, and botnets to unwitting victims, and he received notices from internet governance entities (such as Spamhaus) that his servers were hosting malicious activity. Nonetheless, he was familiar with these criminal schemes, took steps to protect them from being discovered or disrupted, and hosted them on his servers for financial gain.

SAHUROVS admitted that from in or about February 2010 to in or about September 2010, he registered domain names, provided bullet-proof hosting services, and gave technical support to a “scareware” scheme targeting visitors to the Minneapolis Star Tribune’s website. On February 19, 2010, the Minneapolis Star Tribune began hosting an online advertisement, purporting to be for Best Western hotels, on its website, startribune.com. Two days later, however, the advertisement began causing the computers of visitors to the website to be infected with malware. This malware, also known as “scareware,” caused visitors to experience slow system performance, unwanted pop-ups and total system failure. Website visitors also received a fake “Windows Security Alert” pop-up informing them that their computer had been infected with a virus and another pop-up that falsely represented that they needed to purchase the “Antivirus Soft” computer program to fix their security issues, at a price of $49.95.

Website visitors who clicked the “Antivirus Soft” window were presented with an online order form to purchase a purported security program called “Antivirus Soft.” Users who purchased “Antivirus Soft” would receive a file download that “unfroze” their computers and stopped the pop-ups and security notifications. However, the defendant admitted, the file was not a real anti-virus product and did not perform legitimate computer security functions, and merely caused malware that members of the conspiracy had previously installed to cease operating. Meanwhile, the defendant admitted, victim users who did not choose to purchase “Antivirus Soft” became immediately inundated with so many pop-ups containing fraudulent “security alerts,” that all information, data, and files on their computers were rendered inaccessible. Members of the conspiracy defrauded victims out of substantial amounts of money as a result of the scheme. The defendant admitted that as a result of his participation, he made between 150,000 and 250,000 U.S. dollars.

This case was investigated by the FBI’s Minneapolis Field Office.

The Criminal Division’s Office of International Affairs, as well as the Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice provided substantial assistance. Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Department’s Office of International Affairs also provided substantial assistance in this matter.

Defendant Information:

PETERIS SAHUROVS, 28

Rezekne, Latvia

Convicted:

• Conspiracy to commit wire fraud, 1 count

###

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

GALVESTON, Texas – A 22-year-old Freeport man has been ordered to federal prison following his convictions of distribution, receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Miguel Jimenez Jr. pleaded guilty Jan. 25, 2017.

Today, U.S. District Judge George Hanks handed Jimenez 240 and 120 months for the distribution and possession charges as well as 240 months for the receipt of child pornography. The sentences will run concurrently. Additional information was also presented today, including that besides the victims in the images and videos, Jimenez had contact with four minor females from whom he sought graphic nude images. In handing down the sentence, Judge Hanks noted his obligation to protect the public and the victims. Jiminez will also be on supervised release for rest of his life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender. Restitution will be determined at a later date.

Jimenez came to the attention of authorities after they believed he was uploading and storing child pornography into a virtual storage account. A search warrant was executed at his residence, at which time law enforcement located and seized various computers and cellular phones. Forensic analysis of the phones, computers and virtual storage accounts revealed 658 child pornography images and 634 child pornography videos. The images and videos included minors under the age of 12 engaging in sexual activity, toddlers, instances of sadism, masochism, bondage involving the penetration of the minor, as well as masturbation and the lewd and lascivious display of the children’s genitals.

Jimenez admitted he possessed, received and distributed numerous images of child pornography. Jimenez chatted with unidentified users who shared his sexual interest in children. Further, Jimenez used several different on-line applications to chat with underage girls all over the country. He had an online relationship with one minor female whom he had threatened by saying she had to continue the relationship or he would send naked pictures of her to her friends.

The forensic analysis results indicated that Jimenez searched the Internet using the phrase, “how much trouble can you be in for sending naked photos of ex.”

Jimenez has been detained since his arrest on May 5, 2016, at which time U.S. Magistrate John R. Froeschner found him to be a flight risk and danger to the community. Jimenez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations, Galveston Division, conducted the investigation.

This case, prosecuted by Assistant U.S. Attorney Sherri Zack, 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."

BILLINGS – Rian Lee Kvernes, a 28-year-old resident of Livingston, was sentenced today to 78 months in prison followed by 4 years supervised release after pleading guilty to conspiracy to possess with intent to distribute methamphetamine in October.  U.S. District Judge Susan Watters handed down the sentence. 

Kvernes and his associates possessed and sold methamphetamine in early 2016. They also traded stolen firearms for methamphetamine. Specifically, he and an associate traded 10 to 15 stolen long guns for an ounce of methamphetamine in Butte. During the investigation, law enforcement executed a search warrant at his residence and found 12 additional stolen firearms. They also found methamphetamine, drug distribution supplies, and a short-barreled shotgun behind his bedroom door.

The case was prosecuted by Assistant U.S. Attorneys Thomas Godfrey and Paulette Stewart and investigated by the Missouri River Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

GREAT FALLS - The United States Attorney’s Office announced today that 53-year old Michael Lira of Billings was sentenced to 150 months in prison, five years of supervised release, and a $100 special assessment.  U.S. District Judge Brian M. Morris presided over the hearing.  

In the fall of 2016, the Russell Country Drug Task Force began investigating the defendant, Michael Lee Lira, for trafficking methamphetamine in Montana.  Through further investigation, law enforcement became aware that the defendant, who lived in Billings, Montana, distributed methamphetamine for Great Falls resident, Robert Linn, Jr.  Linn was previously sentenced to 276 months in prison for his role in this offense. 

On April 8, 2017, law enforcement learned that the defendant planned to pick up methamphetamine from Linn that day.  Agents also learned the defendant and Linn arranged to meet at a gas station near Lewistown, Montana.  Law enforcement followed Linn throughout the early morning as he traveled around Great Falls.  Linn eventually began to drive eastbound out of Great Falls toward Lewistown.  Meanwhile, agents followed the defendant as he left Billings and drove toward Lewistown. 

Around mid-morning, agents observed the defendant park next to Linn’s truck in the gas station parking lot.  The defendant got out of his car and went to speak with Linn.  A few minutes later, the defendant left Linn’s truck, retrieved a bag from his car, and placed the bag in the back passenger seat of Linn’s truck.  Approximately 20 minutes later, the defendant and Linn got out of Linn’s truck.  The defendant grabbed a black bag from Linn’s truck and placed it in the defendant’s car.  Linn then drove back to Great Falls, while the defendant drove east and entered a neighboring colony outside of Lewistown. 

Agents waited outside of a colony building for the defendant but eventually knocked on the door.  A woman came to the door and stated that the defendant was in a trailer behind the building.  Agents proceeded to the trailer and the defendant opened the door.  Based on the gathered information, agents arrested the defendant and initially located a small baggie of methamphetamine in the defendant’s coat.

Soon thereafter, law enforcement searched the defendant’s car for the suspected methamphetamine.  The defendant stated the contraband was located in a red toolbox in the back of the car.  Agents located a large plastic bag inside the box, and seized four large bundles of methamphetamine contained in the bag.  The DEA laboratory analyzed the methamphetamine seized from the defendant and determined the methamphetamine had a net weight of 1793 grams and a substance purity of 99%.  This resulted in 1775 grams, or approximately four pounds, of actual methamphetamine.  The methamphetamine seized from the defendant’s coat had a net weight of 4.264 grams and a substance purity of 99%.  This resulted in 4.221 grams of actual methamphetamine. 

During a subsequent interview, the defendant explained that he began by only selling an ounce of methamphetamine at a time.  However, he quickly moved up to dealing more significant amounts of methamphetamine.  The defendant believed he received a pound of methamphetamine from Linn by August and September of 2016.  The defendant then recounted that he got two pounds of methamphetamine in December 2016, and an additional two pounds of methamphetamine in January and February 2017. 

Lira has an extensive criminal history that include prior felony convictions for narcotics, burglaries, assaults, and firearms.

The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by Homeland Security Investigations, the Drug Enforcement Administration, and the Russell Country Drug Task Force.

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

LAREDO, Texas – A 41-year old resident of Apodaca, Nuevo Leon, Mexico, has been ordered to prison following his conviction of conspiracy to import 50 kilograms or more of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Sergio Aguilar-Hernandez pleaded guilty Aug. 31, 2017.  

Today, visiting U.S. District Judge Hilda G. Tagle ordered him to prison for 90 months. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.

On June 15, 2017, Aguilar-Hernandez arrived at the Columbia bridge driving a tractor trailer. Inside the vehicle was a  box of aloe vera drinks that were found to contain approximately 10.26 kilograms of liquid methamphetamine. 

Aguilar-Hernandez had entered the country two days prior with the same box of aloe vera drinks, but was unable to locate his contact in Laredo. He then continued to Stafford to deliver a legitimate load, picked up a new one in Victoria and returned to Mexico.

Aguilar-Hernandez entered again on June 15 in a second attempt to meet his contact, but was apprehended at the bridge prior to delivering the methamphetamine.

Aguilar-Hernandez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Jose Angel Moreno prosecuted the case.

LAREDO, Texas – A 26-year-old undocumented alien from Nuevo Laredo, Tamaulipas, Mexico, has been ordered to prison following his conviction of conspiracy to import methamphetamine, announced U.S. Attorney Ryan K. Patrick. Eduardo Sanchez-Obregon pleaded guilty Oct. 3, 2017, to one count each of conspiracy to import more than 50 grams of methamphetamine and more than 500 grams of a mixture of methamphetamine. 

Today, U.S. District Judge Marina Garcia-Marmolejo sentenced him to 70 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his prison term.

On July 28, 2017, Sanchez-Obregon took part in a conspiracy to smuggle 7.5 kilograms of methamphetamine. He was traveling from Mexico on a Turimex commercial passenger bus with the drugs contained inside a small suitcase in the luggage compartment. Authorities searched the bus as it arrived at the IH-35 U.S. Border Patrol Checkpoint. He was arrested shortly thereafter.

He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.

United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Misprision of a Felony was sentenced on February 5, 2018, by U.S. District Judge Roberto A. Lange.

Wastewin Jonnie Waukechon, age 39, was sentenced to 9 months in custody, 1 year of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.

Waukechon was indicted by a federal grand jury on March 15, 2017, for Conspiracy to Distribute a Controlled Substance, Distribution of a Controlled Substance, and Possession with Intent to Distribute a Controlled Substance. Waukechon pled guilty to Misprision of a Felony on November 13, 2017.

On February 8, 2017, Waukechon accompanied Richard Neiss from Rapid City to Eagle Butte, South Dakota, where Neiss intended to distribute methamphetamine. Waukechon was present and watched while Neiss sold 11.1 grams of methamphetamine to another individual in Eagle Butte. Waukechon, having knowledge of the methamphetamine distribution transaction, concealed that fact from federal law enforcement and did not otherwise report the incident to a judge or other person in civil authority.

This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.

Waukechon was immediately turned over to the custody of the U.S. Marshals Service.

Earlier today, in federal court in Brooklyn, Dr. Syed Imran Ahmed, a licensed medical doctor who practiced at hospitals in Brooklyn and on Long Island, was sentenced by United States Chief Judge Dora L. Irizarry of the Eastern District of New York to 13 years’ imprisonment for submitting millions of dollars in false and fraudulent claims to Medicare.  The Court also ordered Dr. Ahmed to pay $7,266,008.95 in restitution, to forfeit $7,266,008.95, and to pay a $20,000 fine.  Dr. Ahmed was convicted by a federal jury after an 11-day trial of one count of health care fraud, three counts of making false statements related to health care matters, and two counts of money laundering.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) Office of Investigations, New York Region, announced the sentence.

“Dr. Syed Ahmed treated Medicare like a personal piggy bank, stealing over $7.2 million by making fraudulent claims for medical procedures he never performed,” stated United States Attorney Donoghue.  “Dr. Ahmed will now pay the price for violating the trust that Medicare places in doctors.  His 13-year prison sentence and the heavy payments imposed should send a powerful message of deterrence to other medical professionals who would seek to defraud vital taxpayer-funded programs like Medicare for personal enrichment.  This Office, together with our law enforcement partners, will remain vigilant in rooting out health care fraud.”

“Medicare is a crucial program for many of the most vulnerable people in our society – American seniors and those with disabilities,” stated Acting Assistant Attorney General Cronan.  “In this case, Syed Ahmed put his own greed ahead of the trust we put in our medical professionals, draining over $7 million in precious funding from our Medicare program.  His conviction and the sentence imposed in this case demonstrate the Department of Justice’s unwavering commitment to protecting public funds and the integrity of our health care system.”

“Health care fraud is often billed as a victimless crime, but that couldn’t be further from the truth,” stated FBI Assistant Director-in-Charge Sweeney.  “Someone is always left to foot the bill. Insurers, the insured, and others are the ones who pay the price. Those who employ these schemes will most certainly be brought to justice, as we’ve proven here today.”

“The fraud scheme that Dr. Ahmed engaged in was motivated by pure greed,” stated HHS OIG Special Agent-in-Charge Lampert.  “HHS OIG and our law enforcement partners will continue to aggressively pursue all those who seek to unlawfully enrich themselves by victimizing participants of the Medicare program.” 

According to evidence presented at trial, Dr. Ahmed, a surgeon who practiced at Kingsbrook Jewish Medical Center and Wyckoff Heights Medical Center in Brooklyn, Franklin Hospital in Valley Stream, and Mercy Medical Center in Rockville Centre, New York, billed the Medicare program for incision-and-drainage and wound debridement procedures that he did not perform.  Dr. Ahmed wrote out lists of phony surgeries and sent the lists to his billing company in Michigan, with instructions that the procedures be billed to Medicare.  Dr. Ahmed also directed that the surgeries be billed as though they had taken place in an operating room in order to increase the payout for the fraudulent scheme.  The evidence introduced at trial showed that Medicare paid over $7 million to Dr. Ahmed for his fraudulent claims.

The FBI and HHS OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.  Assistant U.S. Attorney F. Turner Buford, formerly a Fraud Section trial attorney, Senior Litigation Counsel Patricia Notopoulos of the United States Attorney’s Office for the Eastern District of New York, and Trial Attorney Debra Jaroslawicz of the Fraud Section are prosecuting the case. 

The Defendant:

Syed Imran Ahmed
Age: 51
Residence: Glen Head, New York

E.D.N.Y. Docket No. 14-CR-277 (DLI)

LAREDO, Texas – A man and woman from Laredo have been ordered to prison following their convictions of conspiracy to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. Roberto Rodriguez, 30, and his girlfriend Maria Del Carmen Sarabia, 33, pleaded guilty July 6 and Sept. 7, 2017, respectively.

Today, visiting U.S. District Judge Hilda G. Tagle found Rodriguez to be a leader, organizer or supervisor and ordered him to serve 121 months in prison, while Sarabia received a 70-month-term of imprisonment. They will serve three and two years of supervised release following their sentences, respectively.  

On Jan. 12, 2017, police officers conducted a traffic stop of a vehicle Rodriguez was driving. Sarabia was riding as a passenger. Inside the vehicle were methamphetamine crystals scattered on and around the driver’s seat after a failed attempt to toss the package out of  the window. Rodriguez was taken into custody. Following his arrest, authorities also searched their apartment which resulted in the discovery of a bag of methamphetamine which was packaged for distribution. 

Authorities later reviewed calls between Rodriguez and Sarabia which revealed discussions of distributing additional methamphetamine still hidden at their apartment. A subsequent search of the apartment resulted in the recovery of additional narcotics. Sarabia was then taken into custody and also charged in the conspiracy.

Law enforcement eventually recovered a total of 228 grams of methamphetamine between Jan. 12 and Jan. 19, 2017.

The couple have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department and the Webb County Sheriff’s Office. Assistant U.S. Attorney José Angel Moreno prosecuted the case.

Assistant U.S. Attorneys Daniel C. Silva (619) 546-9713, Mark W. Pletcher (619) 546-9714, and David J. Rawls (619) 546-7966

NEWS RELEASE SUMMARY– February 7, 2018

SAN DIEGO – Rabobank National Association, a California subsidiary of the Netherlands-based Coöperatieve Rabobank U.A., pleaded guilty in federal court today to a felony conspiracy charge and agreed to forfeit $368,701,259 – the largest financial penalty in the Southern District of California – for obstructing regulators and hiding deficiencies in its anti-money laundering program.

At today’s hearing before U.S. Magistrate Judge Jill L. Burkhardt, Rabobank admitted to conspiring with several former executives to defraud the United States by unlawfully impeding an examination of its operations throughout California, including its Calexico and Tecate bank branches, by its primary regulator, the Department of the Treasury’s Office of the Comptroller of the Currency (OCC).

Rabobank admitted that its deficient anti-money laundering program resulted in hundreds of millions of dollars in untraceable cash, sourced from Mexico and elsewhere, to be deposited into its rural bank branches in Imperial County, and transferred via wire transfers, checks and cash transactions, without notifying federal regulators as required by law. And when the OCC was on the verge of discovering such grave deficiencies in 2013, Rabobank executives actively sought to deceive the regulators as to the true state of its operations, in the hope of avoiding regulatory sanctions that had previously been imposed on Rabobank in 2006 and 2008 for nearly identical failures.

According to the plea agreement, Rabobank admitted it was aware that the suspicious transactions made by certain customers were indicative of international narcotics trafficking, organized crime and money laundering. Despite this risk, the bank solicited businesses and individuals conducting these transactions, and failed to adequately monitor and conduct adequate investigations into these suspicious transactions.

Rabobank’s guilty plea comes less than two months after a former Rabobank vice president, George Martin, entered into a deferred prosecution agreement with the United States for his role in aiding and abetting Rabobank’s failure to maintain an anti-money laundering program that met Bank Secrecy Act requirements. Martin admitted his conduct in federal court in San Diego on Dec. 14, 2017, and is cooperating with the continuing investigation. As part of its guilty plea, Rabobank also agreed to cooperate with the United States’ continuing investigation of additional criminal conduct.

“Rabobank had an obligation to shine light on suspected drug traffickers, money launderers and organized crime,” said U.S. Attorney Adam L. Braverman. “Instead, this bank deliberately allowed hundreds of millions of dollars of suspicious cash transactions and wire transfers to flow through its branches and took measures to hide this activity from regulators. We will vigorously protect the integrity of the banking system, and we will not allow the financial institutions in our communities to play any role in facilitating international money laundering or financing transnational criminal organizations.”

“When Rabobank learned that substantial numbers of its customers’ transactions were indicative of international narcotics trafficking, organized crime, and money laundering activities, it chose to look the other way and to cover up deficiencies in its anti-money laundering program,” said Acting Assistant Attorney General John P. Cronan. “Worse still, Rabobank took steps to obstruct an examination by its regulator into those same deficiencies.  The integrity of our financial system depends on prompt reporting by banks and other financial institutions of suspicious, potentially criminal transactions, and on these entities’ truthfulness and transparency with their regulators.  Rabobank’s guilty plea today and forfeiture of more than $360 million is a warning to financial institutions that there are significant consequences for banks that engage in obstructive conduct in an effort to hide their anti-money laundering program failures from their regulators.”

“It is the responsibility of Homeland Security Investigations (HSI) to monitor and investigate activity which exploits the global infrastructure, to include financial systems. This complex investigation revealed, and Rabobank admits, that Rabobank was aware of the extreme risk that it was processing hundreds of millions of dollars related to transnational crime and international money laundering – activity which plagues the Southwest Border,” said Dave Shaw, Special Agent in Charge for HSI in San Diego.  “This plea and significant forfeiture sends a strong message to financial institutions that this activity will not be tolerated.”

“Today, Rabobank is being held accountable for its illegal actions involving the movement of more than $360 million through the U.S. financial system on behalf of high risk customers,” stated IRS Criminal Investigation’s Special Agent in Charge R. Damon Rowe.  “In today’s environment of increasingly sophisticated financial markets, it’s critical that global institutions follow U.S. law and abide by our anti-money laundering regulations. The IRS is proud to share its world-renowned financial investigative expertise in this and other complex financial investigations.”

The Bank Secrecy Act (“BSA”), located at Title 31 of the United States Code, requires financial institutions to implement and maintain an anti-money laundering compliance program (“BSA/AML program”) reasonably designed: (i) to detect suspicious activity indicative of money laundering and other crimes and (ii) to assure and monitor compliance with the BSA’s recordkeeping and reporting requirements, including to report to the Department of the Treasury any suspicious transactions (through the filing of “suspicious activity reports” or  “SARs”) indicative of a possible violation of the law.  In its plea agreement, Rabobank admitted knowing of significant BSA/AML program failures between 2009 and 2012. Some of these failures were caused by Rabobank’s policies and procedures that suppressed any investigation into suspicious transactions that occurred at its branches, by its accountholders, or by individuals conducting transactions on behalf of its accountholders that had all the indications of being involved in, derived from, or promoting illegal conduct.

According to admissions in its plea agreement, Rabobank received regular alerts of transactions by “High-Risk” customers, or through accounts deemed to be “High-Risk,” and that had been the subject of prior SARs filed by Rabobank.  These High-Risk customers and accounts included those controlled and managed by Mexican businesses, nonresident aliens and U.S.-based accountholders who transacted hundreds of millions of dollars in untraceable cash, sourced from Mexico and elsewhere, into and through Rabobank accounts.  

Rabobank also admitted in its plea agreement to creating and implementing policies and procedures to prevent adequate investigations into these suspicious transactions, customers, and accounts.  Among those policies and procedures, Rabobank came up with the “Verified List” – a tool that effectively allowed Rabobank to execute an end-run the BSA/AML and SAR requirements.  Rabobank instructed its employees that if a customer was on the “Verified List,” no further review of that customer’s transactions was necessary -- even if the transactions generated an internal alert, or the customer’s activity had changed dramatically from when it was “verified.”  Rabobank’s BSA/AML staff were further instructed to aggressively increase the number of bank accounts on the Verified List.  In 2009, Rabobank had less than ten “verified” customers; by 2012, as a result of Rabobank’s defective BSA/AML policies and procedures, it had more than 1,000 “verified” customers.

Additionally, Rabobank admitted failing to monitor and conduct adequate investigations into these transactions and submit SARs to the Financial Crimes Enforcement Network (“FinCEN”), as required by the BSA.  Rabobank’s border branches, including those located in Calexico and Tecate in Imperial County, were heavily dependent on cash deposits from Mexico.  Rabobank knew that millions of dollars in cash deposits at these branches were likely tied to illicit conduct.  In particular, the Calexico branch, located about two blocks from the U.S.-Mexico border, was the “highest performing” branch in the Imperial Valley region due to the abundance of cash derived from Mexico.  Throughout the time period, Rabobank continued this practice of soliciting cash-intensive customers from Mexico and elsewhere, all the while employing the foregoing inadequate BSA/AML policies and procedures to address the obvious, known “High Risks” associated with these accounts, transactions, and transactors.

When the OCC began conducting its periodic examination of Rabobank in 2012, Rabobank, acting through three of its executives, agreed to, among other things, knowingly obstruct the OCC’s examination.  Rabobank responded to the OCC’s February 2013 initial report of examination with false and misleading information about the state of Rabobank’s BSA/AML program.  Rabobank made false and misleading statements to the OCC regarding the existence of reports developed by a third-party consultant, which detailed the state of disrepair and resulting ineffectiveness of Rabobank’s BSA/AML program. 

To further conceal the inadequate nature of its BSA/AML program and to avoid “others contradicting our findings” and statements to the OCC, Rabobank demoted or terminated two RNA employees who were raising questions about the adequacy of Rabobank’s BSA/AML program.

The case is being prosecuted by Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, and David J. Rawls from the Southern District of California, and Trial Attorneys Kevin G. Mosley and Maria Vento of the Criminal Division’s Money Laundering and Asset Recovery Section.  The investigation team included HSI, IRS, and the Financial Investigations and Border Crimes Task Force (the “FIBC”), a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture (“TEOAF”).  The investigation occurred in parallel with regulatory investigations by the OCC, Office of General Counsel, and FinCEN, Enforcement Division.

DEFENDANT                                  

RABOBANK, NATIONAL ASSOCIATION

Roseville, California

SUMMARY OF CHARGES

Conspiracy to Defraud the United States, and to Corruptly Obstruct an Examination of a Financial Institution – Title 18, United States Code, Section 371

Maximum penalties: $500,000 fine; a mandatory special assessment of $400; and a term of probation of at least one year, but not more than five years.

AGENCIES

Homeland Security Investigations

Internal Revenue Service – Criminal Investigation

TEOAF’s Financial Investigations and Border Crimes Task Force

BILLINGS - A jury handed down guilty verdicts today in the sex-trafficking trial of Terrance Tyrell Edwards and Francine Joann Granados.  The verdicts against Edwards were guilty on all charges, including three counts of Sex Trafficking by Force, Fraud, or Coercion; three counts of Transportation of a Minor with Intent to Engage in Prostitution; one count of Obstruction of a Sex Trafficking Investigation; one count of Transportation of a Person with Intent to Engage in

Criminal Sexual Activity; one count of Distribution of Marijuana to Person under 21 Years of

Age; and one count of Tampering with a Witness, Victim, or Informant.  The jury found defendant Granados guilty of Tampering with a Witness, Victim, or Informant.

Beginning in March of 2016, shortly after he was released from prison on prostitution charges, Edwards began forcing his first female victim in this case to engage in commercial sex in Missoula, Montana. Edwards physically and emotionally abused her, and threatened her life and the lives of her family members.  Edwards took all of the money from the commercial sex encounters.  As time progressed, Edwards added other women, as many as five.  He followed the same pattern of grooming and abuse each time.  Some of the abuse was well-documented, such as when Edwards struck one victim in his car with such force that her blood splattered on the seat belt, which was later identified as the victim’s blood. 

Edwards advertised his victims on Backpage.com.  They traveled from place to place in Montana and Utah, conducting commercial sex transactions where Edwards received the lion’s share of the money. 

In September of 2016, Edwards convinced three minor females from Fargo, North Dakota, ages 15, 16, and 17, to join his group.  Edwards drove them to Billings, and on the way, he supplied the underage girls with marijuana.  Edwards was arrested in Billings shortly after arriving with the minor girls from North Dakota. 

After Edwards was arrested, he and Granados began trying to influence the testimony of the various victims.  In recorded jail calls played for the jury, Edwards and Granados discussed how Granados would reach out to the victims in an effort to influence their testimony.  Despite warnings from the FBI to have no contact with the victims, Granados persisted.  In other recorded jail calls, Edwards reached out to victims himself to influence their testimony. 

In response to the verdicts, U.S. Attorney Kurt Alme noted that today’s verdicts serve to emphasize comments from the Department of Justice last week, when the Attorney General stated:

“Bringing traffickers like this one to justice is one of the top priorities of the U.S. Department of Justice. We are using every tool at our disposal to eradicate human trafficking. We vigorously investigate and prosecute offenders. We fund training for local law enforcement officers in how to identify trafficking victims. We provide millions of dollars in grants to organizations that assist trafficking victims. And we take every opportunity to raise public awareness of the problem.”

Mr. Alme stated, “We are committed to bringing human traffickers like Edwards to justice  I want to thank prosecutors Cyndee Peterson and Zeno Baucus, the FBI agents, and the victim/witness specialists and the staff of the FBI and our office for their good work in pushing this case through to a verdict.  We will continue to do whatever we can to protect the vulnerable victims of these crimes, who in this case included three minor girls from North Dakota.  I ask people from across Montana to help us spot these human trafficking crimes and report them to law enforcement.”

John H. Durham, United States Attorney for the District of Connecticut, today announced that two New York men have been sentenced in New Haven federal court for their roles in a credit card fraud scheme.

On February 5, Chief U.S. District Judge Janet C. Hall sentenced YANG-SHI LIN, 31, of Flushing, to 12 months and one day of imprisonment, followed by two years of supervised release.  Today, Chief Judge Hall sentenced MEI BAO LU, 31, of Flushing, to 18 months of imprisonment, followed by three years of supervised release.

According to court documents and statements made in court, between 2014 and September 2015, LU was the ringleader of a group of individuals from New York that engaged in counterfeit credit card transactions at retail stores along the East Coast.  LIN was LU’s second-in-command.  As part of the scheme, LU provided several individuals (“buyers”) with counterfeit credit cards, which had been produced from credit card information skimmed from cardholders, and directed the buyers to purchase gift cards and luxury merchandise using the counterfeit cards.  LU then sold the items to other individuals at a discount in order to be fenced or sold on the black market.  The group engaged in fraudulent credit card transactions at retail stores in Connecticut, Florida, Maine, Massachusetts, New York, New Jersey, Pennsylvania and West Virginia. 

In total, the group members collectively used 120 counterfeit credit cards, issued by 18 victim financial institutions, to make a total of approximately $179,000 in fraudulent purchases.  Investigators discovered an additional 333 stolen card numbers on thumb drives belonging to LU and LIN that had not been used at the time of their arrests.

The investigation began in February 2015 when the Clinton Police Department and other police departments in nearby Connecticut towns received several complaints from citizens about unauthorized charges on their credit and debit cards.  The investigation revealed that many of the complaining citizens had all dined at the same Clinton restaurant during a two-week period in early February 2015.

A federal arrest warrant for LU was issued on August 18, 2015.  LU was arrested on September 3, 2016, in West Virginia, after he and three other individuals were caught buying gift cards and merchandise with counterfeit credit cards at a mall in Barboursville, West Virginia.  On February 17, 2017, LU pleaded guilty to one count of access device fraud and aiding and abetting. 

LIN was arrested on August 20, 2015, and pleaded guilty to the same charge on June 22, 2017.

LU and LIN, who are released on bond, were ordered to report to prison on March 7, 2018.

Several other members of LU’s group were charged and convicted for credit card related offenses in state and federal courts in Maine, New Jersey, New York, and West Virginia.

This matter was investigated by Homeland Security Investigations and the Clinton Police Department.  The U.S. Secret Service, Millburn (N.J.) Police Department, New York Police Department, New York State Police, Acton (Mass.) Police Department, and Barboursville (W. Va.) Police Department assisted with the investigation.  The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”), and James J. Hunt, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced charges today against 25 members and associates of the “Hooly Gang,” a crew operating primarily in the vicinity of Fox Street and Leggett Avenue in the Bronx, New York.  The defendants are charged with narcotics conspiracy in Superseding Indictment S1 17 Cr. 449 (KPF).

Manhattan U.S. Attorney Geoffrey S. Berman said:  “The defendants are charged with narcotics conspiracy.  What they allegedly did was annex a residential neighborhood, including two playgrounds, and make it a virtual open-air bazaar for dangerous and potentially lethal drugs.  We commend our partners at the NYPD, HSI, ATF, and DEA for working together to restore our neighborhoods to the law-abiding people who deserve to live without fear of gangs and the violence they often bring.”

NYPD Commissioner James P. O’Neill said:  “As alleged, the defendants in this case plied their poison, including heroin and oxycodone, across two Bronx playgrounds, endangering the lives of many in the neighborhood.  Our focus on crime—and violence—is unwavering.  And it is exhibited clearly in today’s action.  I am thankful for the efforts of detectives, agents, and prosecutors whose work resulted in the arrest of dozens this morning and the unsealing of this superseding indictment.”

HSI Special Agent-in-Charge Angel M. Melendez said:  “The individuals arrested during this operation are alleged to sell crack and heroin around playgrounds.  They have a clear disregard for law enforcement and clearly no regard for the communities in which they live.  HSI and its law enforcement partners will continue to arrest and remove gang members, like those today, off our city streets.”

ATF Special-Agent-in-Charge Ashan M. Benedict said:  “The Hooly Gang and its members, as alleged, turned playgrounds into open air drug markets where narcotics were more common than the sights and sounds of children laughing and playing.  Thank you to all of the federal, state and local partners that helped create a force multiplier effect to help rid the streets of violent narcotics traffickers thus sending a message to the community that the rule of law runs the streets. I would like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.” 

DEA Special Agent-in-Charge James J. Hunt said:  “Allegedly, the Hooly Gang was a feared drug supplier in the Longwood section of the Bronx.  Their products - ranging from crack, heroin, marijuana, and oxycodone - invited gang wars into the surrounding communities and enabled drug addiction.  This unique law enforcement partnership, targeting gang violence in our city, led to today’s arrests.” 

According to the Superseding Indictment[1] unsealed today in Manhattan federal court and other publicly filed documents:

The Superseding Indictment arises from a joint investigation, beginning in 2017, by the NYPD, HSI, DEA, and ATF into a crew operating in the vicinity of Fox Street and Leggett Avenue in the Bronx called the “Hooly Gang.”  Members and associates of the Hooly Gang operated an open-air drug market in this residential neighborhood – including within and around two playgrounds – and sold, among other things, crack, heroin, oxycodone, and marijuana.  In order to protect its drug turf and advance its aims, members and associates of the Hooly Gang also committed acts of violence, including shootings.

*                   *                  *

Defendants arrested in New York yesterday and early this morning will be presented later this afternoon in Manhattan federal court.  Defendant MELVIN ALSTON is presently in custody on state charges and will be transferred to federal custody.  Defendants ANTHONY RODRIGUEZ, a/k/a “Ant,” ROBERTO JORGE, and GIOVANNI TORRES are already in federal custody on related charges.

Each defendant is charged with one count of narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.

The case is assigned to U.S. District Judge Katherine Polk Failla. 

Mr. Berman praised the outstanding investigative work of the NYPD’s Bronx Gang Squad, HSI’s Violent Gang Unit, ATF’s Joint Firearms Task Force, and the New York Field Division of the DEA, as well as the United States Marshals’ Service and the New York State Division of Parole for their assistance in today’s arrests.  He also thanked the Bronx County District Attorney’s Office and the New York City Department of Investigation for their support in the investigation of this matter.

The Office’s Violent and Organized Crime Unit is overseeing the case.  Assistant U.S. Attorneys Rachel Maimin, Jessica Feinstein, and Danielle Sassoon are in charge of the prosecution.

The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

PROVIDENCE, RI – A registered sex offender serving lifetime federal supervised release, having been convicted of possession and distribution of child pornography in 2011, and sentenced to 84 months in federal prison followed by lifetime supervised release, was ordered detained in federal custody today, less than 5 months after completing his term of incarceration on a criminal complaint charging him with possession child pornography.

Robert L. MacGregor, 55, of Providence, was arrested by Homeland Security Investigations (HSI) agents and members of the Rhode Island State Police Internet Crimes Against Children ( RI ICAC) task force earlier today, following an investigation that determined that MacGregor was allegedly in possession of approximately 100 images of child pornography.

According to court documents, during a routine home visit on January 24, 2018, a United States Probation Officer allegedly observed inappropriate materials on MacGregor’s cell phone.  A subsequent forensic examination of the phone by members of the RI ICAC task force allegedly revealed approximately 100 images of child pornography. 

MacGregor’s arrest and detention are announced by United States Attorney Stephen G. Dambruch; Michael S. Shea, Acting Special Agent in Charge of HSI for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.

Possession of child pornography in this matter (2^nd offense) is punishable by statutory penalties of a mandatory minimum of 10 years in prison, with a maximum penalty of 20 years of incarceration; lifetime supervised release; and a fine of up to $250,000.

A criminal complaint 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.

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

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