The former owner and chief executive officer of a Nashville, Tennessee-based telemarketing company pleaded guilty this morning to overseeing a fraudulent scheme in which limited-benefit health plans were sold to consumers as traditional health insurance, and to violating a federal court order that in 2010 froze his assets and shut down the company, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.

Timothy Thomas, 55, of Brentwood, Tennessee, pleaded guilty to one count of mail fraud and one count of contempt before U.S. District Judge David Lawson, sitting by designation in the Middle District of Tennessee.  He is scheduled to be sentenced by Judge Lawson on June 25, 2018.  Thomas was charged in a 15-count indictment filed in October 2014.

According to admissions made as part of his plea, Thomas operated and controlled United Benefits of America (UBA) LLC, which was known at various times as United States Benefits (USB) and Health Care America.  From at least 2007 to 2010, Thomas hired salespeople to sell over the phone so-called “association memberships” created by third-party companies such as International Association of Benefits and Consumer Driven Benefits of America.  These memberships included bundled benefits, such as limited benefit health plans, prescription drug discount cards, accidental death and dismemberment benefits and lifestyle benefits, such as rental car discounts.  Thomas targeted his sales to customers who had been denied traditional health insurance because of preexisting conditions, he admitted.  The sales script used by Thomas attempted to portray the memberships as equal in quality to traditional health insurance, omitting the fact that limited benefit health plans left customers with the vast majority of the financial risk.

Thomas admitted that salespeople working for him made even more flagrant misrepresentations and omissions and used terms such as “deductibles” and “copays” to make customers believe they were buying traditional health insurance.  Customer service employees and the Better Business Bureau routinely notified Thomas about customers complaining that they had been deceived into believing the plans were similar to traditional health insurance.  Thomas oversaw a lax compliance program that was understaffed, with usually one employee monitoring up to 60 or 70 salespeople, and levied only occasional fines to salespersons who misrepresented or omitted key details of the plans.  Despite knowing of the rampant misrepresentations and omissions, Thomas rarely fired salespeople for lying to customers, but routinely fired salespeople for low sales numbers, he admitted.   When in 2009 a local news station, WSMV, ran a critical story on UBA featuring undercover footage of salespeople discussing misleading sales tactics, Thomas did not institute any meaningful changes in business practices.  He merely changed the name of his company from UBA to USB and instructed a subordinate to sign a letter to the Better Business Bureau falsely claiming that the companies had nothing to do with each other.

When the Federal Trade Commission (FTC) filed a lawsuit against Thomas and his company in August 2010, a federal judge in the Middle District of Tennessee issued an order freezing Thomas’s assets and placing his company into receivership.  Immediately after being informed of the court’s order, Thomas violated it by withdrawing more than $100,000 from a brokerage account and convincing a friend to deposit checks totaling $528,647, constituting proceeds of the scheme, into the friend’s bank account, he admitted.

As part of his plea agreement, Thomas agreed to forfeit $1.5 million, representing the amount he personally gained through the fraudulent scheme.

The case was investigated by the FBI, the U.S. Postal Inspection Service, the Department of Labor’s Office of Inspector General and the Department of Labor’s Employee Benefits Security Administration.  The FTC and Tennessee Division of Insurance provided substantial assistance.  Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section are prosecuting the case.

DALLAS— Three defendants charged with offenses stemming from their roles in a six year bank fraud scheme that caused $29,000,000 in fraudulent funding of loans, credit lines, and/or credit cards, have pleaded guilty to their respective roles in the scheme, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.

Yesterday, the lead defendant, Eddie Contreraz, 48, of Frisco, Texas, pleaded guilty before U.S. Magistrate Judge Renee Harris Toliver to one count of bank fraud.  The maximum penalty for that offense is 30 years in federal prison, a $1 million fine and restitution.  Sentencing is set for June 11, 2018.

Last week, co-defendants Stephanie Loraine Contreraz, 27, of Frisco, Texas, and Abraham Valdez, 53, of Frisco, Texas, each pleaded guilty to one count of conspiracy to commit bank fraud.  The maximum penalty for that offense is 5 years in federal prison, a $250,000 fine and restitution.  

All three defendants will remain on bond pending sentencing. Later this month, three additional defendants charged in the same case are also scheduled to plead guilty to one count of conspiracy to commit bank fraud.  The seventh defendant, Kwanghee Anh, remains a fugitive with an outstanding arrest warrant.

According to the factual resume filed in the case, from January 2011 through March 2016, Contreraz was the owner and operator of Preferred Marketing Group, Inc. (PMG), also known as PMG Business Solutions. PMG assisted its clients with credit repair and obtaining funding from lenders in the form of loans, lines of credit, and credit cards. The majority of PMG’s clients were unable to obtain funding on their own due to insufficient income and/or employment; as well as the client’s inability to provide certain documents required by lenders.

Beginning in about 2011, according to the factual resume, Contreraz produced and used many fraudulent documents to obtain loan approvals. Contreraz created consistently high quality fraudulent documents that Contreraz knew banks and other lending institutions accepted as valid and genuine documents. Contreraz and his employees then electronically transmitted these fraudulent documents to lenders.

During the period from about January 2011 through March 2016, approximately 95 percent or more of PMG’s clients obtained funding while using false and fictitious documents. Contreraz normally met with the clients and reviewed the information in their loan applications. Some clients did not have jobs, some did not have the necessary documents that banks required in the loan applications, and some did not have high enough income levels to qualify for a loan. When a client had such issues that might prevent loan approval by the bank, Contreraz told these clients that their loan would not be approved unless the client/borrower was willing to submit false information to the bank. False information provided included, inflated false income figures; false representations that the loan applicant's position was the manager of a company; false and fraudulent corroborating pay stubs, W- 2 tax documents, and/or utility bills.

Contreraz caused PMG employees Stephanie Contreraz, Abraham Valdez, Bryce Armijo, and Elizabeth Flint to use false financial information when clients applied for loans and credit cards over the telephone and the internet. These four co­defendants worked with clients to insure that the clients reported the agreed-upon false information. These defendants also escorted clients to obtain the maximum number of loan approvals in a short period of time on the same day. The employees would take clients to meet with specific lender representatives that Contreraz already had established a relationship with and who agreed to help PMG clients.

Contreraz admitted that he caused all six of his co-defendant employees to assist borrowers fraudulently obtain at least 2,300 loans, credit lines, and/or credit cards from at least ten FDIC insured banks and at least another 140 loans, credit lines, and/or credit cards from three non-FDIC insured consumer lenders. During this period, all seven defendants participated in this bank fraud scheme that resulted in the fraudulent funding of loans, credit lines, and/or credit cards in the total amount of at least $29,000,000.

The Federal Bureau of Investigation, Fort Worth Division is investigating this fraud. Assistant U.S. Attorney David Jarvis is prosecuting.

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BOSTON – Luis Alberto Solano-Pimental, 51, was arrested yesterday in Rhode Island after eluding law enforcement for 20 years. He appeared in federal court in Boston before U.S. Magistrate Judge Jennifer C. Boal, who ordered him detained.

In 1997, Solano-Pimental pleaded guilty to passport fraud in federal court in Boston, but failed to appear on his scheduled sentencing date. Solano-Pimental remained a fugitive until he was arrested yesterday in Warwick, R.I.

The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; John Gibbons, United States Marshal for the District of Massachusetts; and Jamie A. Hainsworth, United State Marshal for the District of Rhode Island, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.

FOR PLANNING PURPOSES ONLY

WEDNESDAY, MARCH 7, 2018  

*******MEDIA ADVISORY*******

The U.S. Attorney for the Northern District of Alabama, FBI, Madison County District Attorney’s Office and Huntsville Police Department will hold a press conference Thursday afternoon to announce developments in a material support of terrorism case.

WHAT:   Press conference

WHEN:  Thursday

March 8, 2018

3 p.m.

WHERE:  FBI Huntsville Resident Agency

4700 Whitesburg Drive SE

Huntsville, AL 35802

Media should arrive about 30 minutes before the press conference to set up.

NOTE: All media must have photo identification and valid media credentials. For additional information, contact Peggy Sanford at 205-244-2020, or peggy.sanford@usdoj.gov, or Paul Daymond at 205-533-0600, or pedaymond@fbi.gov.

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MARTINSBURG, WEST VIRGINIA – After nearly a two-year investigation into a drug trafficking operation that spanned multiple states, ten people, including two MS-13 gang members, have been indicted on a variety of federal charges, United States Attorney Bill Powell announced. 

Authorities in West Virginia and Virginia searched more than a dozen properties, seizing 12.5 kilos of cocaine with an estimated street value of more than $300,000, eleven firearms, hundreds of rounds of ammunition, and more than $100,000 in cash. Those indicted on multiple counts in connection with the drug distribution operation are:

• Rogelio Santacruz Godinez, also known as “Tramposo,” also known as “Trampa,” age 36, of Axton, Virginia, Citizen of Mexico
• Jose Alfredo Santacruz Godinez, also known as “Sandoval,” of Axton, Virginia, Citizen of Mexico
• Guadalupe Ibarra-Ayon, also known as “Lupe,” age 30, of Winchester, Virginia, Citizen of Mexico
• Eduardo Hernandez Sanchez, also known as “Lalo,” age 42, of W, West Virginia, Citizen of Mexico
• Suspected MS-13 Gang Member Jose Santiago Cruz-Delcid, also known as “Trucko,” also known as “Truckito,” age 38, of Bunker Hill, West Virginia, Citizen of El Salvador
• Confirmed MS-13 Gang Member Miguel Angel Cruz-Polanco, age 34, of Martinsburg, West Virginia, Citizen of El Salvdaor
• Adam Gunn, II, age 30, of Martinsburg, West Virginia
• Adam Bensaid, age 19, of Martinsburg, West Virginia
• Rogelio Martinez-Rojas, age 34, of Martinsburg, West Virginia, Citizen of Mexico
• Kenneth Biermann-Ruz, also known as “Ruz,” also known as “Chile,” age 29, of Martinsburg, West Virginia

“This investigation lasted nearly two years and involved the cooperative efforts of federal, state and local law enforcement agencies.  When those efforts were combined with the work of our Assistant U.S. Attorneys the stage was set for results, including the indictments that have now been returned by the Grand Jury.  This cooperative effort, through the use of a task force, is the perfect example of how such an investigation should be run.  These agencies worked together, were not worried about who got credit, combined resources, and got big results.  We are a small district and task forces, like the one that worked this investigation, are a force multiplier.   I can’t thank the task force, its leaders, and participating agencies enough for their dedicated work in this investigation.

“The task forces across the district, the federal, state and local law enforcement, the Assistant U.S. Attorneys and our colleagues in county prosecutor offices across will continue to aggressively pursue all of those who come into this district thinking they can distribute poison in our communities.  Whether that poison is the form of cocaine, like in these indictments, heroin, fentanyl, or methamphetamine, we will relentlessly pursue them. This investigation has shown that violent gangs like MS-13 are attempting infiltrate our state.   If you are MS-13, do not come here.  We know what you stand for, we will find you, and we will prosecute you for violations of the law.   

It is important to state that we have a number of ongoing investigations, and I expect we will continue to work together towards successful conclusions in all of them,” said Powell.   

Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher are prosecuting the cases on behalf of the government. The U.S. Attorney’s Office of the Western District of Virginia assisted. The investigation is led by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department. Other agencies assisting in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.

The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

     PHOENIX – This week, Juan Carlos Burns, 20, of the Salt River Pima-Maricopa Indian Community was sentenced by U.S. District Judge David G Campbell to 34 years in prison. A federal jury had found Burns guilty of second degree murder and discharging a firearm causing death.

     On Sept. 25, 2017, at the Auk Mor 2 gas station located on the Salt River Pima-Maricopa Indian Community, Burns, a member of the Salt River Pima-Maricopa Indian Tribe, shot the victim one time in the back of the head with a 9 mm handgun. The victim died within minutes. Evidence showed that Burns shot the victim as a result of a derogatory comment made by the victim toward Burns.

     The investigation in this case was conducted by the Salt River Police Department and the Mesa Police Department and Crime Lab, to include the Safe Trails Task Force. The prosecution was handled by Thomas Simon and Robert Brooks, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:            CR-17-00445-PHX-DGC 

RELEASE NUMBER:    2018-023_Burns

# # #

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

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

DENVER --  The United States Attorney’s Office for the District of Colorado today announces that Jorge Loya-Ramirez was sentenced to life imprisonment for his role in a conspiracy to distribute methamphetamine throughout northern Colorado and southwestern Kansas.  The sentence was pronounced by United States District Judge, Robert E. Blackburn, in United States v. Amaya, et al, 15-cr-272-REB, on March 6, 2018.  Loya-Ramirez was indicted by a grand jury on June 23, 2015, as part of a 28 person drug conspiracy operating in Colorado, California, and Kansas.  He was the last remaining defendant in the case to be tried before a jury, and he was convicted on August 23, 2017, for distribution and possession with the intent to distribute methamphetamine, as well as the drug conspiracy. 

At trial, the evidence showed Loya-Ramirez was the leader of a methamphetamine syndicate and used a team of employees to distribute hundreds of pounds of methamphetamine.  To facilitate drug distribution, Loya-Ramirez used violence, intimidation and deadly weapons.  When he was stopped near Lamar, Colorado, in May, 2015, he had over a kilogram of cocaine and just under a half-pound of methamphetamine in his possession.  

“Poison and pain are what this defendant cultivated in Colorado,” said U.S. Attorney, Bob Troyer.  “Thanks to the FBI, Colorado State Patrol, many other law enforcement partners, and our tireless prosecution team, this dope dealer’s day is done.”

“This investigation illustrates the FBI’s commitment to work with its partners to address violent crime,” said FBI Denver Special Agent in Charge Calvin Shivers. “We extend our gratitude to our law enforcement partners and prosecutors for dismantling this drug trafficking organization and bringing charges forward.”

Loya-Ramirez is the last of the defendants to be sentenced in the case, closing out a multi-year investigation and the prosecution of a large-scale drug trafficking operation in the Denver metropolitan area and beyond.  The United States Attorney’s Office Organized Crime Drug Enforcement Task Force prosecuted this case.  Agents from the Federal Bureau of Investigation led the investigation, with assistance from other agencies working at the Metro Gang Task Force and the Colorado State Patrol.

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Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews

CHARLESTON, W.Va. – A Parkersburg man was sentenced today to two years in federal prison for a drug charge, announced United States Attorney Mike Stuart. Nathaniel Pittman, 27, previously pled guilty to possession with intent to distribute heroin and cocaine. U.S. Attorney Stuart commended the investigative efforts of the Wood County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

“The citizens of Parkersburg are some of the finest folks in West Virginia,” said U.S. Attorney Stuart. “We won’t tolerate drug dealers in Parkersburg or anywhere in this district, and we will continue working to keep them off the streets and locked up for their crimes.”

On July 7, 2016, members of the Wood County Sheriff’s Office conducted a traffic stop of Pittman’s vehicle and seized heroin and cocaine. Pittman admitted that he possessed the drugs found in his vehicle, and that he intended to sell the drugs. Lab testing confirmed that the drugs law enforcement recovered were over 80 grams of heroin and over 90 grams of cocaine.

Assistant United States Attorney John Frail handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.

This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.

• Follow us on Twitter:SDWVNewsandUSAttyStuart 

BOSTON – A Chelsea man, dubbed the “Spelling Bee Bandit,” was sentenced today in federal court in Boston for four bank robberies.

Jason S. Englen, 34, was sentenced by U.S. District Court Judge Richard G. Stearns to 84 months in prison and three years of supervised release. In November 2017, Englen pleaded guilty to four counts of bank robbery.

On Oct. 31, 2016, a man, later identified as Englen, entered a branch of TD Bank in Arlington, approached a teller and presented a note written on a deposit slip indicating a robbery and demanding cash. On the note, the word “robbery” was misspelled. The teller handed Englen money from the drawer and Englen fled the bank leaving the demand note behind. 

Over the next few weeks, three additional banks were robbed in the same fashion: a branch of TD Bank in Reading on November 5, a branch of Salem Five in Burlington on November 7, and a branch of TD Bank in Peabody on November 13. Based on the similarity of the robberies and the physical description of the robber, law enforcement, seeking help from the public, identified Englen, who was already in state custody on unrelated charges, as the bank robber. On Dec. 12, 2016, Englen was arrested by federal authorities and charged.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Suffolk County Sheriff Steven Tompkins; Arlington Police Chief Frederick Ryan; Reading Police Chief Mark D. Segalla; Burlington Police Chief Michael Kent; and Peabody Police Chief Thomas Griffin made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.

TOPEKA, KAN. – A federal grand jury returned an indictment Wednesday against a Topeka man who is accused of driving a getaway car in two armed robberies, U.S. Attorney Stephen McAllister said.

 Justin Alexander McClelland, 30, Topeka, Kan., is charged with two counts of aiding and abetting robbery and two counts of aiding and abetting the use of a firearm during a robbery. The first robbery count alleges McClelland took part in a robbery on Jan. 6, 2017, at Plato’s Closet, 1580 S.W. Wanamaker Road in Topeka. The second robbery count alleges he took part in a robbery on Jan. 20, 2017, at Kentucky Fried Chicken, 1812 N.W. Topeka Boulevard in Topeka.

Joshua Alexander Musgraves, 24, Topeka, was charged in the same robberies. He pleaded guilty and he is set for sentencing May 14. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

OTHER INDICTMENTS

Dominic M. Bosworth, 24, who is in custody, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Nov. 16, 2017, in Shawnee County, Kan.

If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

Gwyndell B. Declerck, Jr., 31, who is in custody, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Sept. 27, 2017, in Shawnee County, Kan.

If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

Kenneth Lee Wade, 29, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 28, 2018, in Shawnee County, Kan.

If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

John H. Durham, United States Attorney for the District of Connecticut, announced that MILES PRICE, also known as “Molly Rock,” 29, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 144 months of imprisonment, followed by five years of supervised release, for racketeering, firearm possession and drug distribution offenses.

According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures.  The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.  In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities.  The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.  PRICE was an associate of RSGB.

On April 20, 2011, Benton recruited PRICE to assist in the robbery of money and marijuana from Kevin Lee of New Haven.  On that date, Benton, PRICE, Luis “Chewie” Padilla and Rodrigo “Rico” Ramirez drove to the vicinity of Lee’s residence.  Benton, PRICE and Padilla walked to the residence and Ramirez stayed in the car.  Benton handed PRICE a .45 caliber handgun as they approached the back door.  After Lee answered the door, Lee tried to grab PRICE’s gun and lunged at PRICE with a knife.  Padilla then shot Lee once in the stomach, once in the back, and finally in the head.

PRICE also traveled to Maine at Benton’s request to assist in RSGB’s crack distribution enterprise.

In 2014, as part of an unrelated investigation, law enforcement conducted seven controlled purchases of crack from PRICE.  On April 12, 2014, PRICE sold a .44 caliber revolver and a .22 caliber pistol to an individual working with law enforcement.

PRICE has been detained since his arrest on June 18, 2014.  On October 6, 2015, he pleaded guilty to one count of engaging in a pattern of racketeering activity, one count of possession with intent to distribute, and distribution of cocaine base (“crack”), and one count of possession of a firearm by a previously convicted felon.

As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine.  The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.

Benton, Padilla and Ramirez pleaded guilty to various offenses stemming from this investigation, and admitted to participating in the murder of Kevin Lee.  Benton also admitted that he participated in three other gang-related murders and one attempted murder, and Padilla admitted that he participated in two other gang-related murders and two attempted murders.

On October 4, 2017, Benton was sentenced to 480 months of imprisonment.  Padilla and Ramirez await sentencing.

U.S. Attorney Durham noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.

This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department.  The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.

An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.

This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter Markle and Jocelyn Kaoutzanis.  A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.

BILLINGS—Ronald Andrew Smith, a 36-year old resident of Selma, California, was sentenced today to 240 months in prison and 5 years of supervised release after pleading guilty to possession with intent to distribute methamphetamine.  United States District Judge Susan P. Watters handed down the sentence.

On February 19, 2017, Smith was pulled over by a Montana Highway Patrol trooper outside of Big Timber, Montana.  While speaking to Smith during the course of the traffic stop, the trooper suspected that Smith was engaged in criminal activity.  When the trooper informed Smith that he would be impounding his vehicle and applying for a search warrant, Smith attempted to start his car and flee.  In the process, he punched and kicked an officer assisting with the stop and four Tasers had no effect on Smith as he was able to get the car in gear and flee. 

During his flight on Interstate 90, Smith drove at upwards of 100 miles per hour, forced a number of cars off the road, and tried to wreck a semi-truck in an attempt to stop the pursuit.  Eventually, Smith’s car got stuck in the snow on a side road, and he fled on foot into the mountains where he avoided arrest until the following day.  While searching for Smith, law enforcement officers came upon two plastic-wrapped packages containing approximately 937 grams of methamphetamine.  Smith confessed to trafficking methamphetamine after his arrest and drew a map for investigators to a location where he hid an additional 1188 grams of methamphetamine the night before while avoiding capture.  Smith was held responsible for just shy of two kilograms of pure methamphetamine, which converts to nearly 16,000 individual dosage units of the drug that would have reached drug users in Montana absent the timely efforts of law enforcement.

The case was investigated by the Drug Enforcement Administration in conjunction with the Montana Highway Patrol and the Sweetgrass County Sheriff’s Office.  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.

If convicted, Helding and Flores face a mandatory minimum of five years and a maximum penalty of 40 years in federal prison on the marijuana charge.  Helding faces a mandatory minimum five years on the charge of possessing firearms in furtherance of a drug trafficking crime.   Federal law requires that any penalty imposed for this charge be served consecutive to any sentence imposed on the drug charge. 

The charges against Helding and Flores are the result of an investigation by the Marathon County Special Investigations Unit, which includes the Marathon County Sheriff’s Office and the Wausau and Everest Metropolitan Police Departments, the Drug Enforcement Administration, and the Wisconsin State Patrol.  The prosecution of this case is being handled by Assistant U.S. Attorney Robert A. Anderson.

Madison Man Faces Additional Drug & Gun Charges

Marquise S. Howard, 23, Madison, Wis., is charged in a superseding indictment with possessing cocaine with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition.  The indictment alleges that Howard possessed the cocaine and a 9mm handgun and ammunition on January 18, 2018.

Howard was previously charged in an indictment returned by the grand jury on the felon in possession charge only.

If convicted, Howard faces a maximum penalty of 20 years in federal prison on the cocaine charge, a mandatory minimum five years on the charge of possessing a firearm in furtherance of a drug trafficking crime, and 10 years on the felon in possession of a firearm and ammunition charge.  Federal law requires that any penalty imposed for possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any sentence imposed on the other charges. 

The charges against Howard are the result of an investigation by the Madison Police Department, Dane County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of this case is being handled by Assistant U.S. Attorney Meredith P. Duchemin.

The cases against Darren E. Johnson, Joel J. Helding, Valerie A. Flores, and Marquise S. Howard were brought 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.

South Beloit Woman Charged with Drug Crime

Cheryl Barrera, 50, South Beloit, Illinois, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute.  The indictment alleges that she possessed the methamphetamine on October 17, 2016.

If convicted, Barrera faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison.  The charges against her are the result of an investigation by the FBI’s Safe Streets Task Force, which includes the FBI, Rock County Sheriff’s Office, Rock County District Attorney’s Office, Beloit Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of this case is being handled by Assistant U.S. Attorney David Reinhard.

Two Mexican Citizens Charged with Illegally Reentering U.S.

In separate, unrelated indictments, two citizens of Mexico have been charged with illegally reentering the United States after previously being deported.  Roberto Reynoso-Sanchez, 39, was found in Abbotsford, Wisconsin, on January 29, 2018.  Juan Salgado-Ballena, 39, was found in Dorchester, Wisconsin, on February 10, 2018. 

If convicted, Reynoso-Sanchez faces a maximum penalty of two years in federal prison and Salgado-Ballena faces 10 years in federal prison.  The charges against them are the result of investigations by U.S. Immigration and Customs Enforcement.  The prosecution of Reynoso-Sanchez is being handled by Assistant U.S. Attorney David Reinhard and the prosecution of Salgado-Ballena is being handled by Assistant U.S. Attorney Corey Stephan. 

ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the ATF concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses.  To date, 85 of these defendants have been convicted, including 84 who have entered guilty pleas, and 65 of them have been sentenced.

The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution.  Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.

Today, Albuquerque resident Benjamin Marquez, 46, was sentenced in Santa Fe, N.M., federal court to 60 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.

Marquez and co-defendant Richard Lucero, 38, were arrested in Aug. 2016, on a five-count indictment alleging drug trafficking offenses.  Marquez was charged individually with distribution of heroin on May 5, 2016, and Marquez and Lucero were charged with conspiring to distribute methamphetamine from May 6, 2016 through June 1, 2016, and distribution of methamphetamine on May 6, 2016, May 18, 2016, and June 1, 2016.  On May 1, 2017, Marquez pled guilty to distributing methamphetamine, and admitted that on June 1, 2016, he sold approximately 60 grams of methamphetamine to an undercover law enforcement agent.  Lucero pled guilty on Jan. 5, 2017, and was sentenced on Aug. 10, 2017, to 41 months in prison followed by three years of supervised release.

Fifteen of the defendants charged as the result of the ATF investigation have entered not guilty pleas.  Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.  The charges against two defendants have been dismissed.

These cases were investigated by the Albuquerque office of ATF.  This case was prosecuted by Assistant U.S. Attorney Eva Fontanez.

Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that,Miguel Angel Galicia-Canseco, age 33, of Clarksville, Tennessee was sentenced today to 84 months in federal prison followed by two years of supervised release on one count possession with intent to distribute methamphetamine.  The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.

According to court records, in June of 2017, Arkansas State Police observed a truck suddenly slow down and cross over the white fog line on Interstate 40 in Crawford County, Arkansas. An officer with the Arkansas State Police initiated a traffic stop and identified the driver as Galicia-Canseco. The officer discovered that Galicia-Canseco had a felony arrest warrant out of Tennessee for a drug offense. During the course of the stop, the State Police utilized a K-9 to sniff around the exterior of the truck. The dog alerted the officer to the odor of narcotics near the back of the truck. Officers then searched the truck, and found approximately 19 pounds of methamphetamine.  The drugs were sent to the Drug Enforcement Administration laboratory for analysis and the results indicated the substances totaled 8.5 kilograms of a mixture of methamphetamine at 98% purity or 8.3 kilograms of actual methamphetamine.

Galicia-Canseco pled guilty to possession with intent to distribute methamphetamine in November 2017.

This case was investigated by the Arkansas State Police, and the Drug Enforcement Administration. Assistant United States Attorney Amy M. Driver prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Pablo Jacinto-Torres,age 24, of Springdale, was sentenced today to 84 months in federal prison followed by three years of supervised release on one count of Possession With Intent To Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.

According to court records, in 2017, the Springdale Police Department conducted several controlled purchase of methamphetamine from Pablo Jacinto-Torres. On May 15, 2017, Jacinto-Torres was stopped and arrested for an outstanding warrant.  During the search of Jacinto-Torres vehicle, officers located digital scales, a large amount of cash and marijuana.  A search of Jacinto-Torres residence resulted in officers locating approximately 178 grams of methamphetamine.  The Arkansas State Crime Lab results reflect that the substance recovered tested positive for methamphetamine.

Jacinto-Torres was indicted by a federal grand jury in June 2017 and entered a guilty plea in November 2017.

This case was investigated by the Springdale Police Department. Assistant United States Attorney David Harris prosecuted the case for the United States.

Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that William Joshua Stowe, age 27, of Madison, Georgia, was sentenced to 70months imprisonment for possession with intent to distribute heroin and possession of a firearm by a convicted felon. The sentence was imposed by Senior United States District Court Judge C. Ashley Royal in Athens, Georgia on March 7, 2018.

There is no parole in the federal system.

In his plea agreement, Mr. Stowe admitted that on December 14, 2016, Morgan County Sheriff’s Office deputies served a search warrant at his house in Madison after a confidential source bought heroin there.  In executing the warrant, the police seized 6 grams of heroin, two shotguns, a rifle, a 9mm pistol, and various drug paraphernalia.  On the date of his arrest, Mr. Stowe had two prior felony convictions for burglary and a felony theft conviction.  The police also arrested Mr. Stowe’s half-brother, Edward Vance Tallon, for possession of a firearm by a convicted felon.  Mr. Tallon has pled guilty, and his sentencing is scheduled for April 11, 2018.

This case was brought 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.

“Guns and drugs are a recurring theme in our local communities and in our nation. It is the goal of my office to make substantial penitentiary sentences for those who deal in these items a recurring part of that theme as well,” said United States Attorney Peeler.

The case was investigated by the Morgan County Sheriff’s Office, the Jasper County Sheriff’s Office, and the Putnam County Sheriff’s Office.  Assistant United States Attorney Peter D. Leary prosecuted the case for the Government.

Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.

Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Andrew Whittington, age 40, of Myrtle Beach, South Carolina, was sentenced to 110months imprisonment for possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon. The sentence was handed down by Senior United States District Court Judge C. Ashley Royal in Athens, Georgia on March 7, 2018.

There is no parole in the federal system.

In his plea agreement, Mr. Whittington admitted that on December 18, 2016, he was stopped for speeding on Interstate 20 in Morgan County, Georgia by a Georgia State Patrol Trooper.  Mr. Whittington gave consent for a search of his person, but when suspected methamphetamine was found, Mr. Whittington began a physical struggle that lasted several minutes before he was ultimately handcuffed.  A subsequent search of Mr. Whittington’s car revealed 234.15 grams of methamphetamine, 14.476 grams of heroin, and a stolen .22 pistol.  On the date of his arrest, Mr. Whittington had five prior felony convictions.

This case was brought 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.

“A career criminal dealing in the poison of illegal drugs, violently resisting apprehension and carrying a deadly weapon to protect his stash, Andrew Whittington is the exact person Congress had in mind when it passed the law making it illegal for a felon to possess an firearm.  He richly deserves the hefty sentence he received today,” said United States Attorney Peeler.

The case was investigated by the Georgia State Patrol and the Morgan County Sheriff’s Office.  Assistant United States Attorney Graham A. Thorpe prosecuted the case for the Government.                                                

Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.

SOUTH BEND – Stephan Howard, age 55, of Rochester, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possessing methamphetamine with the intent to deliver, announced U.S. Attorney Kirsch. 

Howard was sentenced to 168 months imprisonment followed by 5 years of supervised release. 

According to documents in this case, on January 17, 2017, Howard possessed over 500 grams of methamphetamine in his home in Rochester which he intended to distribute to others.   He also agreed to forfeit 18 firearms that were taken from his home by law enforcement on that day.    

This case is being investigated by the Drug Enforcement Administration with the assistance of Indiana State Police, Rochester Police Department, Fulton County Police Department and the Fulton County Prosecuting Attorney.  The case was handled by Assistant U.S. Attorney Frank Schaffer.

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RENO, Nev.– A Reno man pleaded guilty yesterday to robbing a US Bank located inside a Safeway, announced U.S. Attorney Dayle Elieson of the District of Nevada.

Mathew Eugene Hovious, 47, pleaded guilty to one count of bank robbery. United States District Judge Larry R. Hicks accepted the guilty plea. Sentencing is scheduled for June 4, 2018.

According to court documents, Hovious admitted that, on October 23, 2017, he approached a bank teller and said, “Sorry, I have to do this,” then proceeded to give the teller a note that read: “I have a gun and a friend outside. We will use it. Do not pursue. $50s, $20s, $10s only. No dye packs or Transponders. I will kill you.” The teller put money in an envelope for Hovious and he left the bank. He stole approximately $2,600.

At the time of sentencing, Hovious faces the maximum statutory penalty of 20 years in prison and a $250,000 fine.

The case was investigated by the FBI. Assistant U.S. Attorney Megan Rachow is prosecuting the case.

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