HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert T. Donelon, age 55, of Etters, Pennsylvania, was indicted yesterday by a federal grand jury for offenses involving the exploitation of minors.

According to United States Attorney David J. Freed, the indictment alleges that on January 10, 2018, Donelon possessed images of child pornography depicting a minor engaged in sexually explicit conduct, and received child pornography over the internet. The indictment also seeks forfeiture of all electronic equipment connected with the images of child pornography.

This case was investigated by the West York Borough Police Department with the assistance of the Federal Bureau of Investigation.  Assistant United States Attorney James T. Clancy is prosecuting the case. 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit  www.usdoj.gov/psc and click on the tab "resources."

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. 

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for the receipt of child pornography offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.  That charges carries a mandatory minimum term of imprisonment of 5 years.  The possession of child pornography charge is punishable by a maximum of 10 years’ imprisonment and a $250,000 fine.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately on March 14, 2018, by a federal grand jury for illegal re-entry into the United States by a previously deported alien. 

According to United States Attorney David J. Freed, Carmelino Verdugo-Torres, age 30, of Mexico, was previously deported from the United States to Mexico in February 2011.  He is alleged to have illegally re-entered the United States sometime after February 2011, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.

Juan Carlos Munguia, age 29, of Honduras, was previously deported from the United States to Honduras in October 2009.  He is alleged to have illegally re-entered the United States sometime after October 2009, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.

Oscar Cash-Cash, age 29, of Mexico, was previously deported from the United States to Mexico in September 2013.  He is alleged to have illegally re-entered the United States sometime after September 2013, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.

Evaristo Feregrino-Fortanell, age 27, of Mexico, was previously deported from the United States to Mexico in July 2015.  He is alleged to have illegally re-entered the United States sometime after July 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Under federal law, Verdugo-Torres, Munguia, Cash-Cash and Feregrino-Fortanell all face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine. 

These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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ALBUQUERQUE – David Lawrence Krueger, 39, of Farmington, N.M., pled guilty yesterday in federal court to violating the federal firearms laws by unlawfully possessing firearms.  At sentencing, Krueger faces a maximum penalty of ten years of imprisonment unless the court determines that he is an armed career criminal.  In that event, Krueger will face an enhanced sentence of a statutory mandatory minimum penalty of 15 years of imprisonment and a maximum of life imprisonment.

 Krueger is being prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution.  Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing them from communities in New Mexico for as long as possible.

Krueger was arrested on Sept. 28, 2017, on a two-count indictment charging him with being a felon in possession of a firearm on Jan. 25, 2017, in Sandoval County, N.M., and on Feb. 1, 2017, in San Juan County, N.M.  Krueger was prohibited from possessing firearms or ammunition because of his prior felony convictions, which include convictions for armed robbery, aggravated robbery, domestic abuse, assault, and battery.

During yesterday’s change of plea hearing, Krueger pled guilty to the indictment. In entering the guilty plea, Krueger admitted selling four firearms to an undercover law enforcement agent on Jan. 25, 2017.  Krueger also admitted selling two firearms to an undercover law enforcement agent on Feb. 1, 2017.  Krueger acknowledged that he was prohibited from possessing firearms or ammunition because he was a convicted felon.  Krueger remains in custody pending a sentencing hearing, which has yet to be scheduled.

This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.

Five people were added to a now 39-count indictment for their roles in a conspiracy to distribute at least 220 pounds of marijuana and 345 pills of Oxycodone in Northeast Ohio, law enforcement officials said.

Indicted are Amer Jabir, 37; Ahmad Jabir, 22; Aymen Abdelrahim, 28, and Gerald Knox, 37, all of Cleveland.

Added to the indictment are Jaber Hammouda, 33, of North Olmsted, Amran Jabir, 30, of Chicago; Ahmad Abukhalil, 37, of Lakwood; Mohamed Mansour, 27, of Olmsted Falls, and Alaa Hassan, 23, of Westlake. All nine are charged with conspiracy to possess with intent to distribute least 100 kilograms of marijuana and 345 pills of Oxycodone between 2015 and 2018.

There are additional charges for distribution of marijuana, distribution of Oxycodone, and related charges. Knox is charged with possession of a firearm related to drug trafficking and being a felon in possession of a firearm.

The indictment also seeks to forfeit more than $2.1 million in cash, five firearms, a 2015 Range Rover, a $5,000 casino poker chip and miscellaneous jewelry seized from locations in Cleveland, North Olmsted and Chicago as part of the investigation.

Amer Jabir was the leader of an organization that brought hundreds of pounds of marijuana from grow operations in California to Chicago and then Cleveland. The marijuana was hidden in secret trap compartments in vehicles that were then placed in the back of car haulers, according to court documents.

Some of the pills and marijuana were sold by Aymen Abdhelrahim, from a gas station on West 25^th Street where Abdelrahim worked as a clerk, according to court documents.

“This case demonstrates how drugs are moved across the country, from California to a gas station on West 25^th Street,” U.S. Attorney Justin Herdman said. “It also exemplifies how drug traffickers use firearms to protect their millions of dollars in drug profits.”

“This group of individuals profited millions of dollars from transporting and selling oxycodone and marijuana in our community,” said FBI Special Agent in Charge Stephen D. Anthony. “They drove fancy cars and utilized an expensive apartment in Chicago to store their illegal narcotics.  The FBI applauds the cooperative efforts by all law enforcement agencies involved in this investigation.” 

If convicted, the defendants’ sentences 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 Federal Bureau of Investigation, the North Olmsted Police Department, the Westlake Police Department, the Ohio State Highway Patrol, U.S. Customs and Border Protection and the Westshore Enforcement Bureau. It is being handled by Assistant U.S. Attorneys Justin Seabury Gould and Robert F. Corts.

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.

Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, pleaded guilty yesterday to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

Solano pleaded guilty yesterday to one count of attempting to provide material support to ISIS, in violation of Title 18, United States Code, Section 2339B(a)(1).  Sentencing is set for May 30, 2018, at 9:15 a.m. before United States District Judge Paul C. Huck in Miami.  Solano faces a statutory maximum sentence of twenty years’ imprisonment and a $250,000 fine.   

According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (“CHS”) for the government, that he was upset with the United States and wanted to conduct an attack in Miami.  Later, Solano told this CHS that he wanted to join ISIS.

Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall.  Solano discussed his plot with the CHS and two undercover FBI employees.  According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments.  Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack.  Unbeknownst to Solano, the device was inert and did not pose a risk to the public.  Solano was taken into custody prior to entering the Mall.   

Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF).  The case is being prosecuted by Assistant United States Attorney Karen E. Gilbert and Department of Justice Counterterrorism Section Trial Attorney Jolie Zimmerman. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Ocala, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Elma Denise Sizelove (40, Silver Springs) to 57 months in federal prison for bank fraud and aggravated identity theft. She pleaded guilty to the offenses on December 18, 2017.

According to court documents, Sizelove was arrested by law enforcement after attempting to pass a fraudulently altered check at a local bank. A subsequent search of her vehicle uncovered 150 letters and 47 additional checks that had been stolen from local residents. The stolen checks had a total face value of $68,208.41. Further investigation revealed that Sizelove had fraudulently altered and deposited other checks that she had stolen from residential and commercial mailboxes into her bank account using mobile and ATM deposits.

This case was investigated by the U.S. Postal Service. It was prosecuted by Assistant United States Attorney William S. Hamilton.

CHICAGO — A former Chicago-based partner in a global consulting firm has been sentenced to two years in federal prison for scheming with a client to bilk their companies out of hundreds of thousands of dollars in purported consulting work that was never performed.

NAVDEEP ARORA, a former partner in the Chicago office of McKinsey & Company Inc., plotted with a former internal consultant at State Farm Mutual Automobile Insurance Co. to defraud both companies out of phony consulting fees.  Arora also fraudulently obtained money from McKinsey, State Farm and other McKinsey clients in the form of purported work-related travel reimbursements for expenses that were actually incurred on Arora’s personal trips.  Arora falsely expensed personal trips to Scottsdale, Ariz.; Vail, Colo.; Las Vegas, Nev.; London, England; Prague, Czech Republic; Munich, Germany; and elsewhere.  He took the State Farm employee, MATTHEW SORENSEN, on two personal vacations – to Napa, Calif. and New York, N.Y. – and expensed them to State Farm as business expenses.  The costs included flights, hotels, meals, car services and other items. 

Arora, 53, of London, England, and formerly of Chicago, was arrested in 2016 at JFK International Airport in New York after arriving on an overseas flight.  He pleaded guilty last year to one count of wire fraud.  U.S. District Judge Ronald A. Guzman imposed the sentence Wednesday in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. 

Arora and Sorensen “concocted a fraudulent scheme to benefit themselves during their employment,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum.  “The defendants’ actions have caused both companies to undertake time and expense uncovering this fraud, destroyed a longstanding relationship between these two companies, and caused reputational harm.”

Sorensen, of Bloomington, Ill., also pleaded guilty to a wire fraud charge.  Judge Guzman in September 2017 sentenced Sorensen to one year and one day in prison.

Arora and Sorensen had a longstanding business relationship through Arora’s work overseeing the consulting services McKinsey provided to State Farm.  At State Farm, Sorensen provided input and recommendations about whether to hire outside consultants for company projects and who to retain. 

According to the charges, their fraud scheme began in 2007.  Arora and Sorensen used two corporate entities – “Gabriel Solutions” and “Andy’s BCB” – to defraud their employers out of the phony fees.  Sorensen billed McKinsey for the bogus work purportedly performed by the companies, while Arora allocated the fees to the State Farm projects to which he was assigned.  As a result, McKinsey and State Farm paid $38,265 for consulting services purportedly performed by “Andy’s BCB,” and $452,710 in fees billed by “Gabriel Solutions.” 

Sorensen pocketed a large majority of the money, while Arora received a substantial salary and benefits from McKinsey for maintaining its business relationship with State Farm.

A federal grand jury yesterday, returned a superseding indictment against a former Nashville, Tennessee judge on obstruction and other charges stemming from a scheme in which he abused his official position for personal gain.  U.S. Attorney Don Cochran for the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.

Cason “Casey” Moreland, 60, of Nashville, Tennessee, was originally indicted in April 2017 on five counts of obstruction of justice. The superseding indictment adds five additional counts: two counts related to theft from a program receiving federal funds; two additional obstruction of justice counts relating to witness tampering and destruction of documents; and one count of committing an offense while on pretrial release.  Moreland was arrested again on March 1, 2018, pursuant to a criminal complaint charging him with obstruction charges. 

According to the superseding indictment, Moreland was a General Sessions Judge in Nashville and Davidson County, Tennessee and heard civil, criminal and traffic cases.  Moreland also presided over the General Sessions Drug Treatment Court, which was a specialized court program designed to provide alternatives to incarceration for certain defendants.  The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”).  Although Moreland did not have an official position with the Drug Court Foundation, he exercised de facto authority over the Drug Court Foundation’s operations.  Beginning in Spring 2016, Moreland is alleged to have begun embezzling cash from the Drug Court Foundation.  According to the indictment, Moreland directed the Drug Court Foundation’s director to deliver envelopes of the Drug Court Foundation’s cash to his office in exchange for allowing the director to increase the compensation that she received from the Drug Court Foundation.

According to the superseding indictment, Moreland became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury in February 2017. The superseding indictment alleges that after learning of the investigation, Moreland took steps to obstruct and interfere with the investigation by directing the Drug Court Foundation’s director to destroy documents that would show the amount of cash that had been paid to the Foundation and ultimately stolen by Moreland.  In February 2018, Moreland is alleged to have attempted to tamper with a witness by suggesting that she lie to the grand jury investigating his conduct.

An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section.

Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on March 14, 2018, Amalia Gamboa (age 41), of Milwaukee, Wisconsin, was sentenced in federal court to 5 years in prison for fraudulently obtaining over $4.6 million in tax refund checks. The sentence followed her guilty plea to mail fraud, in violation of Title 18 United States Code, Section 1341, theft of government money, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.  Gamboa was also ordered to pay $4,681,690.42 in restitution to the Internal Revenue Service.  Gamboa additionally agreed to be voluntarily deported after her prison sentence to Mexico due to her lack of legal status in the United States.

Gamboa committed her theft by fraudulently obtaining Individual Tax Identification Numbers (“ITINs”) from the IRS.  An ITIN is what the IRS issues to individuals who cannot, due to their immigration status, obtain a Social Security number.  Individuals who obtain an ITIN use it to file their income tax returns.  

To obtain an ITIN, an applicant has to provide the IRS certain personal identifying documents, such as national identifications or voter cards.  Gamboa obtained personal identifying documents from citizens of Mexico, fraudulently applied for ITINs in their names, and then filed false tax returns using the ITINs she obtained. 

In the fraudulent tax returns that she filed, Gamboa claimed the Additional Child Tax Credit (“ACTC”).  The ACTC reduces tax liability dollar for dollar, and the unused portion of a refundable credit is still payable to the taxpayer.  Accordingly, even someone who has no tax liability may qualify to receive the ACTC.  Gamboa falsely claimed dependents in the tax returns that she filed to fraudulently receive the ACTC.

From November 2010 through March 2017, Gamboa received at least $4,681,690.42 in U.S. Treasury refund checks from her scheme.  When handing down the sentence, United States District Judge Pamela Pepper said that anyone who commits tax fraud “steals from every hard working person who pays taxes in the country,” and Judge Pepper stated that her sentence must “send a message” to others that tax fraud offenses are serious crimes that require significant sentences.  Judge Pepper also said, referring to tax fraud cases over which she has presided, that she had “never seen a single person responsible for this much loss in my time as a judge,” and further described the amount that Gamboa stole as “mind blowing.”

“IRS Criminal Investigations is sworn to protect the tax system and bring to justice those who steal from the U.S. Treasury,” said St. Paul Acting Special Agent in Charge Hubbard Burgess. “The IRS and Department of Justice remain determined and vigilant in ferreting out these types of identity theft cases and holding those who engage in similar behavior fully accountable.”

“This case sends a clear warning:  Tax fraud and identity theft are serious crimes and will be prosecuted aggressively.  The honest taxpayers that fund our government deserve to know that cheaters face real punishment.  We commend IRS Criminal Investigation for its excellent work in this case.”  

This case was investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorney Keith Alexander.

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For further information contact:

Public Information Officer Dean Puschnig at (414) 297-1700

John H. Durham, United States Attorney for the District of Connecticut, announced that ANDREW DEME, 52, of Fort Lauderdale, Florida, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a conspiracy charge stemming from an investment fraud scheme.

According to court documents and statements made in court, DEME was the President and sole Director of Waters Club Worldwide, Inc. (“WCW”).  In November 2016, WCW completed a merger with Petrus Resources Corporation and the merged company subsequently changed its name to Waters Club Holdings, Inc. (“Waters Club”).  DEME became President, Chief Executive Office and Chief Financial Officer of Waters Club.  According to a Waters Club document used to solicit investors and business partners, Waters Club sought to “introduce a revolutionary Sharing Economy model to yachting” by “form[ing] a membership-based Club with a fleet of yachts strategically located in the world’s leading cruising regions that members can share and use interchangeably for their yachting vacations.”

In pleading guilty, DEME admitted that promoters he hired made certain misrepresentations to prospective investors in Waters Club, including that money would be used to develop the business and fund the operations of Waters Club, and that promoters were not being paid commissions for recruiting investors.  In truth, DEME knew that approximately half of all the money paid by investors for shares of Waters Club was paid to the promoters as sales commissions.  Due in part to the payments to promoters, which totaled approximately $605,204, Waters Club lacked the capital to develop its membership-based club, did not pursue an IPO, and the shares purchased by investors were unsalable.

One of the victims of this investment scheme was a Connecticut resident who invested $475,000 in Waters Club.

DEME pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years.  Judge Meyer scheduled sentencing for June 7, 2018.

DEME has been released on a $100,000 bond since his arrest on December 5, 2017.

Two Waters Club promoters, Thomas Heaphy, Jr. and Brian Ferraioli, both of New York, previously pleaded guilty to the same charge.  Heaphy and Ferraioli recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock.  Heaphy’s total gain from the scheme was $307,658, and Ferraioli’s total gain was $297,546.

This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Mario Almaraz-Juarez, age 23, of Mexico, entered a guilty plea in federal court in Columbia, to Illegal Re-Entry, a violation of 8 U.S.C. § 1326(a).  United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Almaraz was encountered by DHS/ICE agents on December 31, 2017, at the Lexington County Detention Center, in Lexington, after he was arrested for Hit and Run, Driving Under Suspension and No Insurance. An investigation revealed that Almaraz is a citizen of Mexico who had been deported pursuant to an order of removal. U.S. Attorney Drake stated the maximum penalty for Illegal Re-Entry is imprisonment for 2 years and/or a fine of $250,000.

The case was investigated by officers of the ICE-Enforcement and Removal Operations.  Assistant United States Attorney William E. Day, II of the Columbia is prosecuting the case.

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BOSTON – A member of La Mara Salvatrucha, or MS-13, pleaded guilty yesterday in federal court in Boston to charges of racketeering conspiracy and drug conspiracy.

Rutilio Portillo, a/k/a “Pantera,” 34, a Salvadoran national who resided in Chelsea, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, as well as conspiracy to distribute marijuana. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for June 7, 2018.

After a three-year investigation, Portillo was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. Portillo was a “homeboy,” or full member, of MS-13’s Everett Locos Salvatrucha (ELS) clique. During the investigation, law enforcement officers recorded conversations between Portillo and a cooperating witness in which Portillo discussed ongoing MS-13 activities in Massachusetts and admitted to conspiring with MS-13 members to distribute marijuana. 

Portillo is the 34th defendant to be convicted in this case. The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of conspiracy to distribute marijuana provides for a sentence of no greater than five years in prison, a minimum of two years of supervised release, and a fine of no greater than $250,000. Portillo will be subject to deportation upon the completion of their sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.

Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Hugo Rolando Canenguez-Montes, age 52, of El Salvador, entered a guilty plea in federal court in Columbia, to  Illegal Re-Entry, a violation of 8 U.S.C. § 1326(a).  United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Canenguez was encountered by DHS/ICE agents on December 10, 2017, at the Lexington County Detention Center in Lexington after he was arrested for Kidnapping and Criminal Sexual Conduct 1^st Degree. An investigation revealed that Canenguez is a citizen of El Salvador who had been deported five times pursuant to an order of removal. U.S. Attorney Drake stated the maximum penalty for Illegal Re-Entry is imprisonment for 2 years and/or a fine of $250,000.

The case was investigated by officers of the ICE – Enforcement and Removal Operations.  Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.

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Columbia, South Carolina---- United States Attorney Beth Drake stated today that Dennis Michael Martin, age 51, of Columbia, South Carolina, pled guilty in federal court in Columbia, South Carolina, for Distributing Child Pornography, a violation of 18 U.S.C. § 2252S(a)(5)(B).  United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Martin was on supervised release after serving a seventy-eight month sentence for possessing child pornography when the Bureau of Immigration and Customs Enforcement (ICE) received notice from the National Center for Missing and Exploited Children (NCMEC) that Martin might be sharing child pornography on the internet. Further investigation revealed that Martin had been distributing and receiving child pornography for approximately one year while on supervised release. U.S. Attorney Drake stated the maximum penalty Martin could receive is a sentence of imprisonment not less than 15 years nor more than 40 years plus a fine of $250,000 and supervised release of not less than 5 years.

The case was investigated by agents of ICE.  Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.

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Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Stanley Fard Harper, age 33, of Charlotte, was sentenced to 24 months in prison for committing Aggravated Identity Theft, a violation of Title 18, United States Code, § 1028A.  United States District Judge J. Michelle Childs, of Columbia, also ordered Harper to pay over $57,000 in restitution to various financial institutions. 

 Harper was an employee of The Lash Group, a health care consulting firm located in Ft. Mill, SC, since 2010.  Harper had access to the personal identification information (PII) of Lash’s customer pool.  Harper stole this information and used it to open bank and credit card accounts at Founders Federal Credit Union, also located in Ft. Mill.

Harper used Lash client files to set up fraudulent accounts at Founders using his personal cell phone.  He would then go to the Founders branch in Ft. Mill, deposit a nominal sum to show activity, then apply for a credit card linked to that account.  He would then use a fake North Carolina identification and a fake social security card matching the stolen identity to make cash advances and purchases.  He would then deposit additional money into the account to increase the credit limit on his card.  He used the fraudulent cards until they were suspended for nonpayment, and then he would get rid of all the documents.  He opened thirteen accounts.  He received his false identification documents from a website for $60 per set.  All of the cash advances and purchases were for personal items.

Harper also opened fraudulent accounts at Charlotte Metro Federal Credit Union, Truliant Federal Credit Union, and Chase Bank USA. 

The United States Secret Service investigated the case.  Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.

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BOSTON – A New Bedford man was indicted today in federal court in Boston on drug and gun charges.

Ryan Holleran, 26, was charged with one count of possession with intent to distribute cocaine, oxycodone, and 28 grams or more of cocaine base; one count of possession of an unregistered firearm; one count of possession of a firearm with an obliterated serial number; and one count of possession of a short-barreled shotgun in furtherance of a drug trafficking crime.

On Nov. 10, 2017, law enforcement arrested Holleran after executing a search warrant at his apartment. Police recovered an unregistered firearm – a 12-gauge Remington model 870 Express Magnum pump action shotgun with a barrel length of less than 18 inches; a firearm with an obliterated serial number – a 5.56mm caliber Stag Arms model Stag-15 semi-automatic rifle; as well as an M-11 pistol and a Smith & Wesson revolver, over 700 rounds of assorted caliber ammunition, and 11 high capacity magazines.

The charge of possession with intent to distribute cocaine and oxycodone provides for a sentence of no greater than 20 years in prison, at least three years and up to a lifetime of supervised release, and a $1 million fine. The charge of possession with intent to distribute 28 grams or more of cocaine base provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, at least four years and up to a lifetime of supervised release, and a fine of up to $5 million. The charge of possession of an unregistered firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a $10,000 fine. The charge of possession of a firearm with an obliterated serial number provides for no greater than five years in prison, three years of supervised release, and a $250,000 fine. The charge of possession of a short barreled shotgun in furtherance of a drug trafficking crime provides for a minimum sentence of 10 years and up to life in prison, up to five years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

            WASHINGTON – A Clinton, Md. man was sentenced today to 12 years in prison for his involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; U.S. Attorney Jessie K. Liu for the District of Columbia; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.

            Tony Bryant, 56, was convicted by a jury on Feb. 17, 2017, of one count of conspiracy to commit theft of government funds and to defraud the United States and five counts each of theft of public money and aggravated identity theft. Two co-defendants also were found guilty at trial. They include Bryant’s son, Brian Bryant, 30, formerly of Mount Rainier, Md., and Tarkara Cooper, 37, of Washington, D.C. The verdicts followed a trial in the U.S. District Court for the District of Columbia. Brian Bryant was sentenced earlier this month to a 100-month prison term, and Cooper was sentenced in July 2017 to a 63-month prison term.

            Bryant was part of a massive sophisticated stolen identity refund fraud scheme that involved a network of more than 130 people, many of whom were receiving public assistance.  Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners.  Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme.  The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.  According to court documents, the overall case involved the filing of at least 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds. 

            Conspirators played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks.  The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes.  To date, approximately two dozen participants in this scheme have pleaded guilty.  

            According to the evidence presented at trial, from approximately April 2010 through June 2012, Bryant, his son, Cooper, and others collectively claimed $4,959,310 in fraudulent refunds, of which the IRS paid out approximately $2,285,717.  Specifically, Tony Bryant used bank accounts under his control to negotiate federal income tax refund checks, often with assistance from bank employees who were compensated for their services.  The proceeds were usually transferred within a day or two to other bank accounts.

            In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Bryant to serve three years of supervised release and to pay $2,118,139 in restitution to the IRS.  She also ordered a forfeiture money judgment of $244,262.

            Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Liu, Special Agent in Charge Lappin, Inspector in Charge Wemyss and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Aisha Keys and Donna Galindo; former Paralegal Specialists Jessica Mundi and Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Advocate Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.

            Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial AttorneyKimberly G. Angof the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Deanna Tallo, age 29, of Throop, Pennsylvania, and Thomas Coss, age 36, currently an inmate in state prison, were indicted on March 13, 2018,  by a federal grand jury for smuggling suboxone and tobacco into the Lackawanna County Prison during July 2015 and April 2016. The case was unsealed today following the arrest of Tallo.

According to United States Attorney David J. Freed, the indictment alleges that Tallo provided and attempted to provide suboxone and tobacco to inmates at the prison between July 2015 and April 2016, and that during that same time period Coss, then an inmate at the prison, obtained and possessed suboxone and tobacco.

In December 2017, Jerry Defazio, a former contract employee at the prison, pleaded guilty to providing and attempting to provide drugs and tobacco to inmates at the prison. He is awaiting sentencing.

The charges against Tallo and Coss stem from an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.  Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Verkitus, age 53, of Scranton, Pennsylvania, was indicted on March 13, 2018, by a federal grand jury for importing into the United States synthetic canaboids, which are controlled substance analogues.  The case was unsealed on March 14, 2018, following Verkitus’ plea of not guilty entered before United States Magistrate Judge Karoline Mehalchick. 

According to United States Attorney David J. Freed, the indictment alleges that Verkitus obtained the drugs from China during 2015 and 2016. The indictment identifies the synthetic canaboid as “Naphthalen-1-yl 1-(5-fluoropentyl)-1H-indole-3carboxylate,” also known as NM-2201.

Under federal law, controlled substance analogues, which are chemically similar to controlled substances in Schedules I or II, to the extent they are intended for human consumption, are treated as controlled substances

The charge against Verkitus stems from an investigation by special agents of the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Scranton Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.

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.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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CHARLOTTE, N.C. – Stanley Reginald Barron, 37, of Cornelius, N.C. and his co-conspirator, Kimberlie L. Flemings, 49, of Mt. Holly, N.C., were indicted on federal charges in connection with a $1 million bank loan scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  A third person, Brian Lyles, 46, formerly of Jersey City, New Jersey, was also charged separately for his role in the conspiracy. 

U.S. Attorney Murray is joined in making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), and Steven Perez, Special Agent in Charge of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG).

According to the charging documents and court proceedings, from at least 2012 to 2015, Barron, Flemings, Lyles and others executed a fraudulent scheme to obtain automobile and personal loans from at least 19 financial institutions. The co-conspirators submitted dozens of fraudulent loan applications in their names, and the names of at least 30 other individuals, to at least 19 banks and credit unions.  As a result of the fraudulent scheme, the indictment alleges that the three defendants obtained more than $1 million in fraudulent loan proceeds.

According to allegations contained in the charging documents, Barron, Flemings and Lyles submitted the fraudulent loan applications for individuals they had recruited, falsely stating the loans would be used to purchase automobiles, among other things.  Many of the recruited loan applicants had negative information in their credit histories which made getting legitimate loans difficult. Because of this, Barron and others fraudulently “cleaned” or “repaired” the credit reports of certain loan applicants to improve the chances of obtaining a loan from the banks and credit unions. For example, the indictment alleges, Barron and Flemings filed police reports online in the names of certain loan applicants, falsely claiming that the loan applicants were victims of identity theft and that the negative items on their credit reports were due to the identity theft.  Barron, Flemings and others also submitted falsified supporting documents with the loan applications, including false employment and income information.

The indictment alleges that to further execute the scheme, Barron and his co-conspirators created fake automobile dealerships that purported to be the sellers of vehicles purchased with the fraudulent loans. They also set up bank accounts, websites, and addresses associated with these fake automobile dealerships and created fictitious purchase orders which were submitted to the financial institutions as part of the loan application. 

According to allegations contained in court documents, Barron, Flemings and Lyles deposited the fraudulently-obtained checks from the financial institutions into accounts Barron controlled. After keeping a portion of the fraudulent loan proceeds, Barron distributed the rest to his co-conspirators. In this manner, Barron and others obtained more than 25 checks, totaling more than $1 million, from at least 12 financial institutions.

Court documents allege that after Barron and others obtained the proceeds from the fraudulent loans, the majority of the loans defaulted, causing losses to the impacted financial institutions.  To cover up the fraud, Barron and others made false statements to the defrauded banks and credit unions that attempted to collect on the debts, including that borrowers had been the victims of identity theft and that they had not authorized the loans.

Baron, Flemings and Lyles are charged with one count of conspiracy to commit wire and bank fraud.  Barron and Flemings are also each charged with wire fraud affecting financial institutions and nine counts of financial institution fraud.  Barron also faces a money laundering conspiracy charge.

An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.  The wire and bank fraud conspiracy charge carries a maximum sentence of 30 years in prison and a $1,000,000 fine. The wire fraud affecting financial institutions charge carries a maximum prison term of 20 years in prison and a $250,000 fine.  Each of the nine financial institution fraud charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine. The money laundering conspiracy charge carries a maximum penalty of 10 years in prison and a $250,000 Fine.

USPIS and FHFA-OIG led the investigation.  Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.