United States Attorney Ron Parsons announced that a Winner, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on February 8, 2018, by U.S. District Judge Roberto A. Lange.

Anthony Martinez, age 37, was sentenced to 1 month in custody, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Martinez was indicted by a federal grand jury on September 12, 2017. He pled guilty on November 15, 2017.

The conviction stemmed from an incident on April 1, 2015, wherein Martinez was outside a residence firing a shotgun. Martinez having previously been convicted of a felony, was in possession of a 12-gauge shotgun at the time of his arrest.

This case was investigated by the Federal Bureau of Investigation, the Tripp County Sheriff’s Office, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson prosecuted the case.

Martinez is required to self-report to the U.S. Marshals Service on February 22, 2018 at 2:00 pm.

ALBANY, NEW YORK – Nathaniel P. Lorenz, age 46, of Holley, New York, was arraigned today on charges that he submitted fake invoices to the New York State Department of Transportation (NYSDOT) in order to conceal that he was not buying the materials needed to perform contracts for which his company was ultimately paid more than $1 million. 

The announcement was made by United States Attorney Grant C. Jaquith; Todd A. Damiani, Special Agent in Charge of the New England Regional Office of the United States Department of Transportation, Office of Inspector General (USDOT-OIG); New York State Inspector General Catherine Leahy Scott; and Robert L. Keihm, Chief Investigator for the NYSDOT Investigations Bureau.

Lorenz is charged with 8 counts of wire fraud and 1 count of mail fraud.  The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

According to the indictment, Lorenz’s company, ACME Powerwashing Inc. (ACME) of Holley, New York, contracted with NYSDOT in 2015 and 2016 to clean and seal the road portions of bridges, known as concrete bridge decks.  The work involved powerwashing bridge decks with water and then sealing them with a chemical that makes the concrete more resistant to penetration by water, chlorides and waterborne contaminants, which might cause the deterioration of the bridge deck.  The Federal Highway Administration, part of the United States Department of Transportation, provided most of the money for these contracts. 

Each of these contracts required ACME to purchase a certain amount of sealing chemical, based on how many square feet of concrete bridge deck was sealed.  According to the indictment, on 3 contracts in 2015 and 2016, Lorenz submitted fraudulent invoices to NYSDOT in order to conceal that he was not buying the amount of the sealing chemical required by the contracts.  Lorenz falsely claimed that he was buying sealing chemicals from S.E. Brett, Inc., another company that he owned that does not sell anything. 

On these 3 contracts alone, NYSDOT paid ACME a total of $1,139,119.74 for bridge sealing work, and an additional $759,002.64 for bridge washing and other work.  ACME has been a NYSDOT contractor since 2010. 

Lorenz appeared today in Albany before United States Magistrate Judge Christian F. Hummel, and was released pending a trial scheduled before Senior United States District Judge Norman A. Mordue in Syracuse.  If convicted, Lorenz faces up to 20 years in prison, a maximum $250,000 fine, and up to 3 years of post-imprisonment supervised release.  He may also be ordered to pay restitution to one or more government agencies.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by USDOT-OIG, NYSDOT’s Investigations Bureau, and the Office of the New York State Inspector General, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Shawn Faircloth, age 46, of Albany, was sentenced today to 68 months in prison following his guilty plea to possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. 

The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). 

As part of his guilty plea, Faircloth admitted that in early 2013, in downtown Albany, he traded heroin to a drug addict in exchange for a loaded Smith & Wesson .38-caliber revolver.  On August 9, 2013, while executing a search warrant at Faircloth’s apartment, police found the revolver hidden inside a bathroom.  The gun was loaded.  Also in the bathroom, police found a digital scale and supply of Ziploc bags that Faircloth admitted he used to package heroin and crack cocaine, which he sold in Albany. 

Senior United States District Judge Frederick J. Scullin Jr. also ordered Faircloth to serve 3 years of supervised release upon Faircloth’s release from prison. 

This case was investigated by ATF and the Albany Police Department, and was prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Wayne A. Myers.

Assistant U.S. Attorney Nicholas W. Pilchak and Andrew J. Galvin (619) 546-9709 and (619) 546-9721

NEWS RELEASE SUMMARY– February 8, 2018

SAN DIEGO – A father and son fraud team that won over $4 million of federal contracts using false financial statements and other lies pleaded guilty in federal court today.  The father—a long-time self-described government contracting consultant—also admitted to stealing over a half million dollars from his consulting clients. 

At a hearing today before U.S. Magistrate Judge Barbara Lynn Major, Joseph Glenn Osborne, Sr., 68, pleaded guilty to wire fraud and participating in a wire fraud conspiracy with his son, Joseph Glenn Osborne, II, 31.  Osborne, II pleaded guilty to falsely making a writing to obtain money from the United States. 

In his plea agreement, Osborne, Sr. admitted that he stole $588,489 from three different small businesses that retained him as a government contracting consultant.  According to court documents and his admissions, Osborne, Sr. promised to represent the victims in obtaining and fulfilling contracts with the U.S. Department of Agriculture (USDA).  Instead, he used his position as the sole holder of their web passwords to change their banking information in the online federal system controlling where their contract payments would be sent.  When USDA paid on his clients’ contracts, the money was diverted to Osborne, Sr. instead of the victims. 

Osborne, Sr. also admitted to lying to his clients when they questioned the missing payments.  For example, when one client repeatedly pressed him to attend a conference call to explain the missing money and passwords, Osborne, Sr. repeatedly told the client he couldn’t take the client’s calls because he had been seated on a state court jury for a multiple murder trial.  In fact, according to court filings, Osborne, Sr. has never reported for jury duty. 

According to the plea agreement, Osborne, Sr. used a portion of the stolen money to put a down payment on a $2.7 million mansion in Rancho Santa Fe, California.  Osborne, Sr. forged further emails to conceal the source of the money by falsely claiming that it was an early retirement withdrawal from a benefits account at an agency where he had never worked.

In 2013, after Osborne, Sr. was terminated by his clients, the Osbornes agreed to submit fraudulent financial statements to qualify Osborne, II’s new business—Worldwide Connect LLC (WWC)—as an approved USDA contractor.  As set out in their guilty pleas, the Osbornes recruited Osborne, II’s friend and bookkeeper to prepare false financial statements which substantially overstated WWC’s financial health.  For example, the statements fraudulently converted WWC’s 2013 year-end cash position from a $5,546 deficit to a $37,954 surplus. 

The Osbornes also admitted to falsely certifying to the USDA that none of WWC’s principals was suspended or debarred from federal contracting.  In fact, according to documents filed in the case, Osborne, Sr. was suspended and debarred from November 2013 to October 2016 for conduct associated with his prior business, Global Health & Safety.

As a result of these fraudulent submissions, WWC was approved for federal contracting and won over $4 million of USDA food supply contracts.  Four of the five contracts were terminated for contractor default, after WWC failed to deliver over 100,000 cases of fruit juice and raisins to community food banks and lunch programs.  The Osbornes admitted that WWC caused its suppliers and financing company over $1.5 million in losses.  Meanwhile, as set out in the plea agreements and court filings, the Osbornes paid themselves approximately $285,245 of WWC funds in little more than a year.  They also used other company money for personal expenses—including almost $10,000 of nightclub charges, luxury hotel stays, and over $9,000 of new flooring in Osborne, Sr.’s personal residence. 

After their contracts were terminated, the plea documents explain that the Osbornes applied to the Small Business Administration (SBA) to be readmitted to federal contracting.  As part of that application, Osborne II misstated Osborne, Sr.’s military history, telling the SBA he was a retired colonel in the Marine Corps when in fact Osborne, Sr. had retired as a first lieutenant.  Osborne II also supplied a variety of falsified tax returns to the SBA for himself and WWC, including an altered (signed) tax return that converted his real $14,870 tax liability into a fake $5,427 tax overpayment. 

In addition to pleading guilty, each defendant agreed to pay restitution to their victims in the amounts of approximately $1.7 million for Osborne, Sr. and $1.5 million for Osborne II.    

A sentencing hearing for both defendants is scheduled for May 7, 2018 at 9:00 a.m. before Judge Roger T. Benitez.

“Businesspeople who lie, cheat and steal have no place in federal contracting systems funded with American tax dollars,” said U.S. Attorney Adam L. Braverman. “We will be sure that white collar criminals manipulating the system from behind the scenes are held accountable.” 

Special Agent-in-Charge Lori Chan, United States Department of Agriculture (USDA), Office of Inspector General (OIG), Western Region, stated, “The USDA OIG has the responsibility for protecting the integrity of the Agriculture Marketing Service, Commodity Procurement Program.  OIG conducts investigations in each region of the U.S. to deter and uncover criminal activity that undermines the Commodity Procurement Program.  Contractors who engage in financial fraud exploit the public’s trust.  The OIG at USDA works to ensure the integrity of USDA programs.”

FBI Special Agent in Charge John Brown commented, “This comprehensive investigation revealed a continued pattern of theft, deceit, and fraud—all for personal greed and self-promotion.  Working closely with our law enforcement partners, the FBI will continue to pursue and bring to justice those who seek to perpetrate these fraudulent financial schemes and take advantage of victim clients, the federal contracting process, and the American tax payers."

This case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak and Andrew J. Galvin.

DEFENDANT                                                                   Case Number 16CR2546-BEN                  

Joseph Glenn Osborne, Sr.                       Age: 68                                               Carlsbad, California

Joseph Glenn Osborne, II                         Age: 31                                               Carlsbad, California                      

SUMMARY OF CHARGES

Wire Fraud, in violation of Title 18 U.S.C. § 1343; term of custody including 20 years in prison, $250,000 fine, 3 years of supervised release, and mandatory restitution. 

Wire Fraud Conspiracy, in violation of Title 18 U.S.C. § 1349; term of custody including 20 years in prison, $250,000 fine, and 3 years of supervised release, and mandatory restitution. 

Falsely Making a Writing to Obtain Money From the United States, in violation of Title 18 U.S.C. § 495; term of custody including 10 years in prison, $250,000 fine, 3 years of supervised release, and mandatory restitution. 

AGENCIES

U.S. Department of Agriculture, Office of Inspector General

Federal Bureau of Investigation

Executive Assistant U. S. Attorney Linda Frakes (619) 546-6793  and Assistant U.S. Attorney Dylan Aste (619) 546-7621 

NEWS RELEASE SUMMARY– February 8, 2018

SAN DIEGO – U.S. Attorney Adam Braverman has appointed two Opioid Coordinators – one to handle criminal matters and the other civil – to manage the office’s strategy for combatting the deadly opioid epidemic in the Southern District of California.

The criminal coordinator, Linda Frakes, will focus on stopping the illegal importation of heroin, fentanyl and fentanyl analogues as well as targeting dark web vendors who distribute illicit opioids. The civil coordinator, Dylan Aste, will focus on the unlawful prescribing and illegal diversion of these highly addictive drugs.

“This multifaceted approach to enforcing our drug laws will save lives by keeping drugs off our streets and help prevent Americans from becoming addicted to prescription drugs,” Braverman said. “The ongoing opioid epidemic in our district is destroying lives and communities and I’m committed to combatting this crisis with every available asset.”

Attorney General Jeff Sessions issued a directive to all U.S. Attorneys to designate an Opioid Coordinator to work closely with prosecutors, and with other federal, state, tribal, and local law enforcement to coordinate and optimize federal opioid prosecutions in every district.

Braverman took the unique approach of adding an opioid coordinator for civil as well as criminal matters.

As a part of the U.S. Attorney’s strategy to combat the opioid epidemic, the newly designated Opioid Coordinators will make prosecution of all prescription opioids, heroin and fentanyl a top priority, including civil cases involving illegal diversion and unlawful prescribing of these drugs.

Frakes, a 27-year veteran who also serves as the third-highest-ranking prosecutor in the office, was previously supervisor of the Criminal Enterprises section. Her job involved overseeing prosecutions of transnational criminal organizations, including major Mexican drug cartels.

“Our strategy is to hit the opioid crisis hard with every tool we have - from prevention, education and treatment to enforcement,” Frakes said. “We will investigate and prosecute criminals who import fentanyl, distribute fentanyl, or cause death resulting from fentanyl distribution.  If you possess chemicals intending to illegally manufacture fentanyl, you will be prosecuted. Our law enforcement partners are fighting alongside our prosecutors to investigate criminal organizations, here and abroad, who traffic in fentanyl. We will use our federal resources to bring you to justice.”  

Aste, a civil litigator in the U.S. Attorney’s Office, specializes in investigating and prosecuting allegations of fraud against the United States.  He has recovered over $11 million on behalf of the United States.

“Opioid addiction often begins with overprescribing by health care providers and illegal dispensing by pharmacies, and this needs to stop,” Aste said. “I will use the full force of the law to prosecute the prescribers and pharmacies that are contributing to the opioid epidemic.”

Aste has managed several complex opioid-related investigations.  He recently settled two cases involving pharmacies. Medical Center Pharmacy paid $750,000 to resolve allegations under the Controlled Substances Act that included diversion of a significant amount of oxycodone and hydrocodone, failure to control the pharmacies’ inventory of controlled substances, and failure to maintain required records of the pharmacies’ distribution of controlled substances. Sixth Avenue Pharmacy in downtown San Diego paid $147,500 to resolve similar allegations.

Opioids are drugs that include illegally obtained heroin and fentanyl and pain relievers available legally by prescription, such as fentanyl, oxycodone (OxyContin), hydrocodone (Vicodin), codeine, morphine, etc. Opioid pain relievers are generally safe when taken for a short time as prescribed by a doctor, but because they produce euphoria, they can be misused. Regular use—even as prescribed by a doctor—can lead to dependence and, when misused, opioid pain relievers can lead to addiction, overdose incidents and deaths.

Opioids have become a significant and growing problem in this district and throughout the nation. In FY 2017, fentanyl seizures at the California ports of entry increased 266 percent in just one year – from 260 kilograms in FY 2016 to 952.

In April 2017, the U.S. Attorney’s Office and its law enforcement partners created a local Fentanyl Working Group. This multi-dimensional group includes local, state and federal investigative agencies, toxicologists, the Medical Examiner’s Office, DEA Lab chemists and first responders, plus local, county and federal prosecutors.

The Fentanyl Working Group has held two educational Fentanyl Forums, one in June of 2017 and one in November 2017. More than 200 local and federal law enforcement officers attended each meeting where they learned about the dangers of encountering fentanyl in the field; the local smuggling trends from Mexico and China to the U.S.; parcel interdiction cases, prosecution of overdose cases in state and federal courts; and prosecution collaboration with our office and that of the District Attorney.

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In San Antonio today, a federal judge sentenced 33-year-old Ashak Victor Nasief Wesa to 150 months in federal prison followed by three years of supervised release for his role in a synthetic marijuana distribution scheme based in San Antonio, announced United States Attorney John F. Bash, Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.

On October 31, 2017, Wesa, an Egyptian National who was residing in Houston at the time of the offense, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substance analogues.  By pleading guilty, Wesa admitted that from March 2013 to June 2013, he and others comprised the San Antonio-based Jaffer Drug Trafficking Organization (Jaffer DTO) that was responsible for the production and distribution of synthetic marijuana and bath salts in San Antonio, Houston, Austin, and Dallas as well as Tulsa, Oklahoma City, and Kansas City.  During the course of the enterprise, the Jaffer DTO manufactured, caused to be manufactured, attempted to manufacture, distributed and possessed with intent to distribute over 40,000 pounds (or 18,500 kilograms) of synthetic cannabinoids.

In June 2017, Wesa was extradited from Germany to the Western District of Texas.  He since has remained in federal custody.

Wesa is the last of 16 defendants to be convicted and sentenced in connection with this federal grand jury indictment. In April 2017, ringleader Muhammed Jaffer Ali was sentenced to 16 years in federal prison.  Other sentences imposed ranged from five months incarceration to 150 months incarceration.

This prosecution resulted from the efforts of the Federal Bureau of Investigation, the Drug Enforcement Administration and the San Antonio Police Department together with the Internal Revenue Service-Criminal Investigation, the Immigration and Customs Enforcement - Homeland Security Investigations, the U.S. Border Patrol, the Texas Department of Public Safety, and the Live Oak Police Department.  Assistant United States Attorney Mark Roomberg is prosecuting this case.

LEXINGTON, Ky. - A couple from Fresno, Cal. has been sentenced to federal prison for drug and firearm offenses.  Chief U.S. District Judge Karen K. Caldwell formally sentenced the couple on Wednesday, February 7, 2018.   

Jessica Acosta, 29, and Luis R. Morales-Montanez, 27, were each sentenced to 15 years in prison, for possession with the intent to distribute 500 grams or more of methamphetamine, cocaine, and marijuana.  Both were also convicted of possessing nine firearms, during and in furtherance of the drug crimes.  Both forfeited ownership of the firearms, $42,507 in cash, and a 2013 Chevy pickup truck.

In their guilty pleas, Acosta and Morales-Montanez previously admitted that they traveled from Fresno, to Lexington and established a residence on Larkin Road in early 2017.  They then possessed with intent to distribute marijuana and cocaine from the residence.  They also admitted that the cash found was proceeds of the distribution of drugs and that the 2013 truck and nine firearms were used in furtherance of the distribution of drugs.  Additionally, on October 25, 2017, a federal jury convicted both of possessing with the intent to distribute more than half a kilogram of crystal methamphetamine, which they had concealed in another apartment near their Larkin Road address. 

Under federal law, both Acosta and Morales-Montanez must serve 85 percent of their prison sentences; and upon release, they will each be under the supervision of the United States Probation Office for five years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Christopher Evans, Special Agent in Charge, DEA; and Acting Chief of Police Ron Compton, Lexington Police Department, jointly announced the sentences.

These cases were prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. 

U.S. Attorney Duane A. Evans announced that U.S. District Judge Jane Triche Milazzo sentenced JEREMY DORMAN, age 31, of Baton Rouge, Louisiana, and JUSTIN SWANK, age 37, of New Orleans, Louisiana, to 65 months and 40 months imprisonment, respectively, after pleading guilty to one count of conspiracy to distribute and possess with intent to distribute a quantity of methamphetamine.

According to court documents, on September 24, 2015, a confidential source informed Jefferson Parish law enforcement officers that DORMAN was traveling eastbound on Interstate 10 near Kenner, Louisiana with a large quantity of methamphetamine.  A stop and search of the vehicle revealed that DORMAN was in possession of 912 grams of methamphetamine.  In a post-arrest statement, DORMAN acknowledged possession of the methamphetamine and identified SWANK, a New Orleans resident, as his drug trafficking associate who was also in possession of methamphetamine.  Special Agents from the Drug Enforcement Administration went to SWANK’S residence at 2410 Daneel Street and arrested him on an outstanding warrant.  During a search of SWANK’S residence, agents recovered 19 grams of methamphetamine from SWANK’S pocket and recovered another 421 grams of methamphetamine from a safe in SWANK’S bedroom. 

            U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Louisiana State Police in investigating this matter.  Assistant United States Attorney André Jones was in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that WAYNE SONIAT, age 61, of New Orleans, pled guilty today after previously being charged with a two-count Bill of Information for wire fraud and making false statements on federal income tax returns. 

                BEAUMONT, Texas – A 27-year-old federal prison inmate has been indicted for escaping from prison and returning with contraband announced U.S. Attorney Alan R. Jackson today.

                Joshua Randall Hansen was charged in the two-count indictment with escape from a federal facility and possession with intent to distribute a controlled substance.  The indictment was returned by a federal grand jury on Feb. 7, 2018.

                According to the indictment, on Jan. 24, 2018, law enforcement officers arrested Hansen outside the perimeter of the prison camp at the Federal Correctional Complex in Beaumont, Texas.  Hansen is a federal inmate and was not authorized to be outside the facility.  At the time of his arrest, it is alleged that Hansen was on his way back to the prison camp and was in possession of marijuana and alcohol that he intended to distribute within the compound. 

If convicted, Hansen faces up to an additional five years in federal prison.

This case is being investigated by the U.S. Marshals Service, the Jefferson County Sheriff’s Office and the Bureau of Prisons.  This case is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.

A grand jury indictment is not evidence of guilt.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

DES MOINES, IA – On January 23, 2018, Roger Duane Goodwin, age 59, of Windsor Heights, Iowa, was charged with seven counts of mail fraud announced United States Attorney Marc Krickbaum.

According to the Indictment, Goodwin owned and operated “Goodwin Network of Advisors, Inc.” which was also referred to as “Goodwin Network”, “GN of A”, and “GNA Corp.” and sold life insurance, annuities, and similar investment products to individuals in the Des Moines and Houston, Texas areas. From at least February 2013 and continuing through at least August 2016, Goodwin advised several of his clients to purchase insurance products from him. Instead of purchasing insurance policies or contracts for these clients, Goodwin deposited the clients’ checks into a bank account associated with Goodwin Network of Advisors – which only Goodwin and his spouse could access. The indictment alleges Goodwin kept all or large portions of the funds and used the money for unauthorized purposes that were not for the benefit of the affected clients. Goodwin used his clients’ money, unbeknownst to them, for his personal expenses, directly repaying other clients of Goodwin’s, and making payments to the insurance companies for the benefit of other clients whose money Goodwin had failed to earlier send to the insurance company.

Goodwin has a preliminary trial date of April 2, 2018, before United States District Court Judge Rebecca Goodgame Ebinger, at the Des Moines Federal Courthouse. Mail Fraud is punishable by a maximum prison term of twenty years and a maximum fine of $250,000.
The public is reminded that an indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.

The Federal Bureau of Investigation investigated this matter. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

SAN JUAN, Puerto Rico – On February 8, 2018, a federal grand jury returned a  13-count indictment charging three individuals for trafficking firearms without a license, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is in charge of the investigation of the case.

The indictment charges Helmer Colón-Figueroa, Erick Cotto-Romero, and Luis Estrada-Rivera with conspiracy to engage in firearms trafficking without a license. The object of the conspiracy was to purchase firearms in the State of Florida, transport them to Puerto Rico, and sell them to other individuals in Puerto Rico, for profit.

 Helmer Colón-Figueroa is also facing charges for possession of a firearm and ammunition by a convicted felon. Defendants are facing a forfeiture allegation of nine pistols, seven rifles and a money judgment of $47,300. If convicted, the defendants face up to five years in prison for engaging in the business of dealing firearms without a license, and up to 10 years for possession of a machine gun and for possession of a firearm by a convicted felon.

In an unrelated case, Puerto Rico Police Department officers arrested Adriel Carrasquillo-Carmona for carjacking. On Saturday, February 3, 2018, Carrasquillo-Carmona, with the intent to cause death or serious bodily harm, took a gray 1988 Oldsmobile Cutlass vehicle from the presence of a 70-year-old male victim causing him serious bodily injury. The defendant struck the victim in the head and body with a sledgehammer several times. The victim struggled with Carrasquillo-Carmona, who after beating him reached inside the victim’s pockets and took a cell phone, $800 and the vehicle. The defendant was arrested on February 4 and the FBI assumed jurisdiction. If convicted, Carrasquillo-Carmona faces up to 25 years in prison.

“We will continue to work tirelessly with all the law enforcement agencies, federal and state, to fight the wave of crime that is alarming our communities in Puerto Rico,” said United States Attorney Rosa Emilia Rodríguez-Vélez.

Assistant U.S. Attorney Victor Acevedo-Hernández is in charge of the prosecution of the firearms case and AUSA Marie Christine Amy is in charge of the prosecution of the carjacking case. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.

# # #

St. Thomas, USVI – Betel Paulino, 18, of the Dominican Republic, was sentenced Thursday for his role in the armed robbery of the McDonald’s restaurant in Lockhart Shopping Center, United States Attorney Gretchen C.F. Shappert announced.

District Court Judge Curtis V. Gomez sentenced Paulino to 90 months in prison for conspiracy to commit Hobbs Act robbery, and 84 months for discharge of a firearm during a federal crime of violence. Judge Gomez also sentenced Paulino to five years of supervised release, and ordered him to pay a $200 special assessment and perform 400 hours of community service.

On July 27, 2017, Paulino pleaded guilty to conspiracy to commit Hobbs Act robbery and discharge of a firearm during a federal crime of violence. According to documents filed in court, on March 25, 2017, members of the Virgin Islands Police Department (VIPD) responded to reports of a robbery at the McDonald’s restaurant in Lockhart Shopping Center. After an exchange of gunfire, the armed individuals inside the McDonald’s restaurant surrendered to law enforcement and were taken into custody. Paulino was arrested after the investigation revealed that he was involved in the planning, execution, and attempted cover-up of the robbery.

The case was investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco and Firearms, and VIPD. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte and former Criminal Chief Christian A. Fisanick.

DALLAS— Michael Cornelious, 27, and Larry Solomon, 43, both of Houston, Texas, were sentenced this week by U.S. District Judge Ed Kinkeade to lengthy prison sentences for their role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Cornelious pleaded guilty in October 2017 to one count of conspiracy to interfere with commerce by robbery. Judge Kinkeade sentenced Cornelious to 150 months in federal prison and ordered him to pay $370,718.72 in restitution.  Solomon pleaded guilty in June 2017 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Solomon was sentenced to 130 months in federal prison and also ordered to pay $370,718.72 in restitution. 

Cornelious and Solomon were charged along with ten other individuals in an indictment in February 2016.  Afraybeom Traverom Jackson, Dominique Pearson, Hilton Murdock Aitch, Irving Tyrone Flanagan, Terrence Lynn Thompson, Anthony Ray Turner, Jr, Treveon Dominique Anderson, Xavier Rashad Ross, Joshua Deunte Caldwell and Vanlisa Scott were each charged with one count of one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence.  On October 12, 2017, Jimmy Hatchett was charged for the same robbery.  Out of the thirteen, eleven have pleaded guilty and two are set for trial on January 29, 2018. 

According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch,Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas, area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas.  They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.

Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery.  Aitch,Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.

Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing long­sleeved clothing, long pants, gloves, and items covering their faces.  Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer.  After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.

After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van.  They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan.  Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle.  Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement.  Scott, who had traveled from Houston, met Pearsonand the other co­conspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.

The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case.  Assistant U.S. Attorneys Keith Robinson and John de la Garza were in charge of the prosecution.

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LAREDO, Texas – A  27-year-old man has been sent to federal prison for his participation in a smuggling scheme that involved dangerous and life-threatening conditions, announced U.S. Attorney Ryan K. Patrick. Zachery Steven Blizzard pleaded guilty Sept. 5, 2017.  

Today, U.S. District Judge Hilda G. Tagle sentenced Blizzard, of Kingport, Tennessee, to 48 months in prison, followed by a three-year-term of supervised release.

On June 15, 2017, Blizzard instructed three undocumented aliens - one of whom was a minor - to hide themselves in two aftermarket wooden boxes built into the back of his white 2008 Chevrolet work van. Authorities discovered the aliens as Blizzard attempted to pass through a U.S. Border Patrol Checkpoint on Highway 59 approximately 15 miles west of Laredo.

Blizzard is one of eight defendants apprehended since April 2017 for transporting undocumented aliens in wooden boxes built into the back of vehicles. In some instances, the boxes were nailed or screwed shut with temperatures inside often reaching more than 100 degrees.

Yesterday, Judge Tagle sentenced Ricky Lee Parker, 51, of Calhoun, Georgia, to 24months in prison for transporting eight undocumented aliens - found sweating and thirsty - in two cramped wooden boxes. In addition, U.S. District Judge Diana Saldana previously sentenced Jason Allen North, 39, of Ashland, Kentucky; Richard Jordan Lamar Defoor, 32, of Calhoun, Georgia; Allan Ray Collins, 32, of Isom, Kentucky; and Donna Lynn Williams, 46, of Chatsworth, Georgia, while U.S. District Judge Marina Garcia Marmolejo ordered Sean Michael McKinney, 46, of Steger, Illinois, to prison for transporting between 5-10 undocumented aliens each in the same manner. North and Collins each received 24 month, while Defoor and Collins were sentenced to 18 months. McKinney received a 30-month-term of imprisonment.

Travis Dean McKelroy, 48, of San Antonio, pleaded guilty last week and is awaiting sentencing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigations with the assistance of U.S. Border Patrol. Special Assistant U.S. Attorney Lisa M. Ezra prosecuted the cases.

HOUSTON – Two fraud conspirators have entered guilty pleas to participating in a mortgage fraud conspiracy that fraudulently obtained mortgage loans to purchase homes in Houston and Surfside, announced U.S. Attorney Ryan K. Patrick.

David Lee Morris, 55, and Derwin Jerome Blackshear, 50, pleaded guilty to one count each of conspiracy to commit wire fraud and bank fraud, while Blackshear pleaded to bank fraud and also admitted to operating a tax preparation business at various locations throughout the Houston area that prepared fraudulent tax returns.

The mortgage fraud scheme ran from 2005 to 2009. Morris, Blackshear and others associated with the A. Cole Realty Group in Houston caused mortgage lenders to loan excessive amounts of money for the purchase of residential real estate in the Houston and Surfside areas. The scheme focused primarily on the purchase of Beach homes in Surfside. Mortgage lenders were induced to loan far more money than the properties were actually worth. The conspirators then skimmed the excess loan funds from the real estate transactions.  

Morris and Blackshear’s primary role in the scheme was to recruit and pay individuals known as “straw buyers” to sign mortgage loan documents. However, the loan applications contained numerous misrepresentations about the straw buyers’ financial status and ability to repay the loans. Co-conspirators obtained inflated appraisals of the properties to be purchased that supported the excessive lending. Once the loans funded, Morris and Blackshear pocketed a portion of the fraudulently obtained loan funds themselves and then distributed the rest of the funds to other participants in the scheme, including the straw buyers. Ultimately, all the homes purchased through the scheme went into foreclosure, resulting in millions of dollars of losses to the mortgage lenders.

In addition to the mortgage fraud scheme, Blackshear engaged in tax fraud. He owned and operated a tax return preparation business under the name “Level One Tax Services” during 2012 through 2015. Blackshear admitted he willfully placed numerous false items on his clients’ income tax returns in an attempt to generate excessive refunds. As part of his plea, Blackshear admitted he prepared dozens of fraudulent tax returns, causing a loss of $251,323.

Sentencing has been set before Chief U.S. District Judge Lee Rosenthal for May 17, 2018. At that time, each faces up to 30 years in prison as well as a $1 million maximum fine. Blackshear also faces another three years for the tax fraud and a $250,000 fine.

As part of their plea agreements, both have agreed to pay restitution and forfeiture. Morris agreed to pay $4,468,151 in restitution to the defrauded banks and agreed to forfeit $1,460,170.51 in proceeds he earned from the scheme. Blackshear agreed to pay $251,323 in restitution to the U.S. Treasury, $1,995,273 restitution to the defrauded banks and $629,774 in forfeiture of illegal proceeds.

The FBI and the Texas Department of Public Safety conducted the mortgage fraud investigation. Assistant U.S. Attorney (AUSA) Robert S. Johnson is prosecuting the case. IRS – Criminal Investigation conducted the criminal tax investigation. AUSA Attorney Jimmy Sledge Jr. is prosecuting that case.

A Toledo man was charged in federal court in relation to the production of false identification documents, law enforcement officials said.

Mark A. Simon, 34, was charged with production of false identification documents, transfer of false identification documents and possession of equipment used to produced false identification documents.

Investigators seized 18 gold coins, 215 silver coins, 21 gold and silver bars, $7,000 in cash, numerous computers, hard drives and USB storage devices, latex gloves, photo paper, six modems, a photo printer and approximately $4.7 million in bitcoin taken from approximately 30 wallets stored on a USB thumb drive, and other items.

According to a 31-page affidavit filed in U.S. District Court, investigators were originally contacted by an employee of a pub in Springfield, Ohio, about fake IDs collected at the bar. A Wittenburg University student said he and a friend obtained the fake ID off reddit.com.

Agents identified the purported seller by the reddit username of TedDanzigSr, who posted on a daily basis on subjects related to fake IDs. Agents eventually ordered fake IDs from TedDanzigSr and were asked to pay in bitcoin.

Further investigation revealed prior to posting and advertising his manufacture and sale of false identifications on reddit, username TedDanzigSr sold fake IDs on the dark web marketplace Silk Road. Investigators determined that TedDanzigSr’s true identity was Mark Simon, who lives on Stengel Road in Toledo, according to the affidavit.

If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case was investigated by the Ohio Department of Public Safety and United States Secret Service, Toledo Resident Agency, with assistance from the FBI, Ohio Bureau of Criminal Investigation, the Toledo Police Department and the Lucas County Prosecutor’s Office. It is being handled by Assistant U.S. Attorneys Noah P. Hood and Robert Kern.

An charge is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

ASHEVILLE, N.C. – Seth Willis Pickering, 38, of Leicester, N.C. pleaded guilty today to first-degree murder for killing his daughter, Lila Pickering, within the boundaries of the Blue Ridge Parkway, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. 

 “Our hearts go out to Lila’s family.  No action by the criminal justice system can soothe the pain of their loss,” said U.S. Attorney Murray in announcing today’s guilty plea. “This is an outcome reached after consideration of all the facts and circumstances of this case.  By allowing the defendant to plead guilty and serve a life sentence without the possibility of parole, we will spare the family the trauma of a lengthy trial and decades of appeals.  We hope this resolution brings some comfort to the family of Lila Pickering.”

Seth Pickering appeared before U.S. District Judge Max. O. Cogburn, Jr. and admitted to killing his daughter on September 9, 2016, within the boundaries of the Blue Ridge Parkway.  Pickering further admitted that he killed Lila Pickering, who had not attained the age of 18 years and was under his care and control, willfully, deliberately, maliciously and with premeditation.  Pickering’s plea agreement, which the Court has accepted, provides that the defendant will receive a sentence of life in prison without any possibility of parolefor his crime.    

Pickering remains in federal custody.  A sentencing date has not been set. 

In making today’s announcement U.S. Attorney Murray thanks the FBI, the National Park Service and the Buncombe County Sheriff’s Office for their investigation of the case. 

Assistant U.S. Attorneys David Thorneloe and John Pritchard of the U.S. Attorney’s Office in Asheville are in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that DARREN RUFFIN, age 26, of New Orleans, was charged in a one-count Indictment with being a felon in possession of a firearm.

U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department in investigating this matter.  Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.

ALBANY, NEW YORK – Five men have pled guilty to their involvement in a transnational drug trafficking and money laundering ring that moved substantial quantities of drugs and money through Upstate New York and Canada.

The announcement was made by United States Attorney Grant C. Jaquith; James J. Hunt, Special Agent in Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA); James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation; and Special Agent in Charge Kevin Kelly of Homeland Security Investigations (HSI), Buffalo Field Office.

In connection with their guilty pleas, the defendants admitted that:

Between August 2014 and March 30, 2016, Iraklis Haviaropoulos led a money laundering and drug trafficking organization based in Montreal, Canada, which purchased and distributed more than 300 kilograms of cocaine and laundered more than $1 million. 

In connection with the cocaine conspiracy, Haviaropoulos purchased cocaine from, among other sources, Carlos Alberto Ocampo Garcia in Piura, Peru, on the northern coast of Peru.  Pilots working for Haviaropoulos picked up the cocaine at a clandestine airstrip outside of Piura, flew it to Guatemala, and then on to Mexico.  In Mexico, truck drivers picked up the cocaine, smuggled it into the United States by crossing the Mexican border, and then smuggled it into Quebec, Canada.  Some of the cocaine crossed through the Northern District of New York.  During the investigation more than 337 kilograms of cocaine were seized, as well as fentanyl and marijuana. 

The organization collected cash from selling marijuana in the United States and cocaine in Canada.  The cash was delivered to couriers in, among other places, Albany County, Ulster County, and Montreal so that the cash could be delivered, either by a courier or by wire, to the cocaine suppliers, to pay for more cocaine.  At least $1 million was sent to Chicago, Los Angeles, Peru, and Colombia; money was also wired to China.  During the investigation, more than $1 million was seized. 

“This sophisticated organization, which used transnational networks to move huge amounts of cocaine and illegal money through our communities, has now been dismantled thanks to the cutting-edge work of federal agents and their effective collaboration with our law enforcement partners in other states and countries, particularly our Canadian counterparts,” said United States Attorney Grant C. Jaquith.  “As this case demonstrates, we will use all of our resources to pursue foreign-based drug traffickers and bring them to justice.” 

DEA Special Agent in Charge James J. Hunt said: “This highly significant trafficking organization was established in strategic positions around the globe to profit off the sale of cocaine, marijuana and fentanyl.  Law enforcement’s investigation identified the organization’s circuitous route sending money from Quebec to South America Countries and China; and in return, sending drugs back to major cities in North America like Los Angeles, Chicago and Montreal.   Law enforcement is committed to identifying, arresting and prosecuting those whose criminal actions enable drug addiction and inevitable drug overdoses.” 

IRS-Criminal Investigation Special Agent in Charge James D. Robnett said: “IRS-CI is united with the rest of the law enforcement community in our resolve to financially dismantle organizations that commit crimes against our society.  We will target the profits of international narcotics traffickers and secure evidence that exposes their criminal activities.”

HSI Special Agent in Charge Kevin Kelly said: “This case is an effective demonstration of the combined power that federal, state, and foreign law enforcement agencies possess when working together as one. No matter how sophisticated or how large, working collectively, we possess the resources and the will to ensure that operations such as these get taken down as fast as they emerge.”

All of the following people have pled guilty to conspiracy to commit international or promotional money laundering, and Haviaropoulos, Garcia, and Ortiz Bolanos have also pled guilty to conspiracy to possess with intent to distribute 5 kilograms or more of cocaine, before United States District Judge Mae A. D’Agostino:

This case is the result of the close, cooperative efforts of the DEA, led by the Albany District Office and including DEA offices in Peru, Mexico, Colombia, Guatemala, Chicago, Detroit, Los Angeles, and Worcester, Massachusetts; IRS-Criminal Investigation, and HSI.  These federal agencies worked closely with the Sûreté du Québec, the Canada Border Services Agency, the Peruvian National Police, and the Colombian National Police.  U.S. Border Patrol, the Malone Police Department, the New York State Police, the Chicago Police Department, the Massachusetts State Police, and the Watervliet Police Department also provided assistance.

This case is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.  Three of the five defendants were extradited to face charges in the Northern District of New York with the assistance of the U.S. Department of Justice’s Office of International Affairs.