Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID SHALAM pleaded guilty today before U.S. Magistrate Judge Sarah Netburn to a Superseding Information charging him with the production of child pornography.  U.S. District Court Judge Alvin K. Hellerstein will impose sentencing.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “David Shalam paid a woman to perform sex acts via internet video, eventually further urging her to engage in acts of sexual molestation of her own minor children of six and eight years old.  Depraved acts such as this can have profoundly damaging effects on victims, the aftermath often leading to years of suffering psychological torment and anguish.  Today’s plea holds David Shalam accountable for these reprehensible acts.”

According to the allegations in the Superseding Information, and the Complaint filed on March 9, 2017:

Between April and December 2015, SHALAM paid a woman in Romania (referred to in the Complaint as “Jane Doe”) to participate in a series of live video chats over Skype, during which SHALAM directed  Jane Doe to engage in specific sexually explicit conduct with her minor children, who at the time were approximately six and eight years old.  SHALAM referred to Jane Doe’s real time sexual abuse of her children as “shows,” at least one of which SHALAM recorded.

In conjunction with Romanian authorities, the FBI recovered logs of instant messages between SHALAM and Jane Doe over Skype, during which SHALAM and Jane Doe discussed the kinds of sex acts SHALAM wanted to see performed, when the children would be home from school so that the “shows” could take place, and the cost of each “show.” SHALAM wired payments to Jane Doe through a Western Union branch in midtown, Manhattan, a few blocks from the office where SHALAM worked for a retail clothing company.

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SHALAM, 51, of Brooklyn, New York, pled guilty to one count of sexual exploitation of minors, which carries a mandatory minimum sentence of fifteen years in prison, and a maximum sentence of thirty years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the investigative work of the FBI. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Alison Moe and Mollie Bracewell are in charge of the prosecution.  

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JAMEL UPSON, a/k/a “Flynt,” was sentenced today to 40 years in prison for racketeering offenses arising out of his participation in the “Boss Playa Family” or “BPF” street gang based in Mount Vernon, New York, including the murders of two members of a rival gang in 2008.  UPSON pled guilty to a Superseding Information on October 5, 2017, before U.S. District Judge Kenneth M. Karas, who imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “Jamel Upson lead a gang that posed a grave threat to the people of Mount Vernon.  Upson has admitted to personally slaying two rival gang members in the course of gang activities.  Jamel Upson’s disturbing indifference to the lives of others has been met with a fittingly stiff prison sentence that will take him off the streets for 40 years.”

According to the Superseding Information, the Indictment, other documents filed in this case, and statements made during court proceedings:

UPSON was the leader of the BPF street gang, a criminal enterprise that operated in the Mount Vernon area from approximately 2007 to 2014.  BPF members sought to increase the gang’s power, protect and expand its territory, and enrich its members through an array of criminal activities, including shootings, assaults, larcenies, arson, and the distribution of cocaine and marijuana.  In particular, BPF sought to assert its dominance over rival Mount Vernon street gangs, principally the “Goonies” gang, through acts of violence including numerous shootings.

On two occasions in 2008, UPSON murdered a member of the rival Goonies gang.  In the early morning hours of August 13, 2008, UPSON shot and killed 19-year-old Shomari Knox, a Goonies member.  UPSON, on foot, ambushed a vehicle driven by Knox near Ninth Avenue and Third Street in Mount Vernon.  UPSON fired at the vehicle with a handgun, striking Knox in the neck.  When first responders arrived at the scene, Knox was dead.

On December 14, 2008, UPSON shot and killed 21-year-old Cory Cabiness, another member of the Goonies.  UPSON, on foot and armed with a handgun, ambushed Cabiness near Seventh Avenue and Third Street in Mount Vernon, as Cabiness was walking home from a nightclub in the early morning hours.  UPSON shot Cabiness in the head and leg.  Cabiness died from the gunshot wounds about two weeks later.

In addition to the murders of Knox and Cabiness, UPSON committed several other shootings targeting members and associates of the rival Goonies gang between 2008 and 2010.  UPSON, along with multiple other BPF members, also carried out a theft of jewelry valued at over $40,000 from a mall in Bergen County, New Jersey in January of 2009.    

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In addition to the prison term, UPSON, 33, of Mount Vernon, was sentenced to three of supervised release.

To date, five other defendants in this case have been sentenced following guilty pleas to racketeering conspiracy and other offenses arising out of their participation in the BPF gang.  Samuel Carlos, 29, of Mount Vernon, was sentenced to three years in prison and three years of supervised release; Tyrone McCallum, 30, of Mount Vernon, was sentenced to 105 months in prison and five years of supervised release; Portland Ramseur, 33, of Mount Vernon, was sentenced to seven years in prison and three years of supervised release; Gorham Valentine, 33, of Mount Vernon, was sentenced to four years in prison and three years of supervised release; and Jason White, 34, of Mount Vernon, was sentenced to 160 months in prison and five years of supervised release.        

Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and the Mount Vernon Police Department.  He also thanked the Westchester County District Attorney’s Office for its participation and support in this case.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney George D. Turner is in charge of the prosecution.

PITTSBURGH – A resident of Washington County, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, tax evasion, conspiracy to defraud the United States, false bankruptcy declaration, and unlawful possession of a firearm by a felon, United States Attorney Scott W. Brady announced today.

The 13-count indictment, returned on March 14, 2018, named George Retos, Jr., age 69, of Washington, Pennsylvania, as the sole defendant.

According to the indictment, Retos defrauded a Small Business Administration preferred lender, Preferred Capital BIDCO, Inc., in connection with $2,000,000 in loans to Prime Plastics, Inc. and Branikas Investments LLC, two entities operated and controlled by Retos. In violation of the loan agreements, Retos allegedly misappropriated tens of thousands of dollars of loan proceeds and pledged collateral through, among other expenditures, the financing of a $41,000 BMW for a family member and tens of thousands of dollars in charges at casinos in Western Pennsylvania and Las Vegas, Nevada.

The indictment also alleges that Retos willfully attempted to evade and defeat the payment of income taxes due and owing by him to the United States of America by concealing from the Internal Revenue Service (IRS) the nature and extent of his income and assets as well as the location thereof; placing business interests in the names of nominees; paying personal expenses with funds and bank accounts of Prime Plastics, Inc., Branikas Investments, Inc., and a third entity, Plastic Power, Inc., all companies controlled by Retos; issuing checks drawn on Prime Plastics, Branikas Investments and Plastic Power bank accounts payable to Retos; and making ATM withdrawals and purchases at casinos in the Western District of Pennsylvania, Las Vegas, Nevada, and elsewhere using Prime Plastics, Branikas Investments and Plastic Power funds and bank accounts.

The indictment further alleges that Retos conspired to defraud the IRS when he agreed with another individual not to pay over to the IRS payroll and employer taxes of Prime Plastics, Inc. and Plastic Power, Inc. Specifically, to avoid ongoing collection efforts by the IRS related to unpaid taxes of Prime Plastics, Inc., Retos and his co-conspirator allegedly arranged for employees of Prime Plastics, Inc. to be transferred to Plastic Power, Inc., which, in turn, also failed to pay employer and payroll taxes to the IRS. According to the indictment, the unpaid employer and payroll taxes totaled hundreds of thousands of dollars.

In addition, the indictment charges Retos with wire fraud in connection with a scheme to fraudulently obtain unemployment compensation from the Commonwealth of Pennsylvania for Prime Plastics, Inc. and, later, Plastic Power, Inc. employees. According to the indictment, Retos reduced the salaries of numerous employees and instructed them to seek unemployment from the state to make up the difference, knowing full well that the employees were ineligible for such unemployment compensation. During the execution of the scheme, Retos allegedly continued to siphon company funds for his personal benefit.

The indictment also alleges that at Retos’ direction, Prime Plastics, Inc. filed for bankruptcy and, among other things, falsely stated that there had been no withdrawals from the entity outside the normal course of business during the preceding two years. In fact, as alleged, Retos was responsible for numerous such expenditures, including thousands of dollars belonging to Prime Plastics, Inc. spent by Retos at casinos in Las Vegas, Nevada and elsewhere.

Finally, the indictment also alleges that Retos, after having been convicted in or around December 1992 of income tax evasion, false statements in connection with a credit application, mail fraud, and interstate transportation of stolen property, possessed on June 26, 2013, a Kel Tec handgun, .380 caliber, and 14 rounds of ammunition, .380 hollow point.

U.S. Attorney Brady stated, "George Retos, Jr. is alleged to have used multiple businesses he controlled as his personal slush fund, siphoning money for his use at casinos and for the purchase of a BMW for a relative, among other things. In doing so, the indictment alleges that he committed myriad serious crimes, including engaging in two fraud schemes separately targeting a government-backed lender and the Pennsylvania unemployment compensation system, as well as participating in a conspiracy to defraud the IRS out of significant unpaid business taxes. The U.S. Attorney’s office will continue to investigate and prosecute serious financial crimes, and when a convicted felon is found in possession of a firearm, as is alleged here, we will see that they are held accountable to the full extent of the law."

"Today’s multiple count indictment is the result of the cooperative efforts of IRS-Criminal Investigation and our law enforcement partners," said Acting Special Agent in Charge Ed Wirth. "The Special Agents of IRS-CI remain diligent in their pursuit of those who attempt to undermine the system by committing tax fraud and bankruptcy fraud."

"An important mission of the Office of Inspector General is to investigate allegations of fraud related to the Department of Labor's unemployment insurance program. We will continue to work with our law enforcement partners to safeguard benefits intended for unemployed American workers," stated Richard Deer, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

"The FBI is committed to rooting out these types of fraudulent activities and today’s indictment highlights the continued need for that," said Special Agent in Charge Robert Johnson.

Retos faces a maximum sentence of 20 years imprisonment and a fine of $250,000 for each of the seven counts charging him with wire fraud, a maximum sentence of five years imprisonment and a fine of $250,000 for each of the five counts charging him with income tax evasion, conspiracy and false bankruptcy declaration, and a maximum sentence of ten years imprisonment

and a fine of $250,000 for the felon in possession charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Mary McKeen Houghton and Eric G. Olshan are prosecuting this case on behalf of the government.

The Federal Bureau of Investigation; the Department of Labor, Office of Inspector General; and the Internal Revenue Service, Criminal Investigation, conducted the investigation leading to the indictment in this case.

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

FOR IMMEDIATE RELEASE                                          ContactELIZABETH MORSE

www.justice.gov/usao/md                                                   at (410) 209-4885

Greenbelt, Maryland – A federal grand jury returned an indictment yesterday charging an alleged MS-13 member residing in Arlington, Virginia with conspiracy to participate in a racketeering enterprise, conspiracy to distribute controlled substances, and conspiracy to interfere with interstate commerce by extortion.

The indictment was announced by Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Acting Assistant Attorney General John P. Cronan; Special Agent in Charge Andre Watson of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Director in Charge Andrew W. Vale of the FBI Washington Field Office; Special Agent in Charge Karl C. Colder of the U.S. Drug Enforcement Agency (DEA); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.

Luis Arnoldo Flores-Reyes, a/k/a “Maloso” and “Lobo”, 37, is charged in a four-count superseding indictment that alleges that from at least 2015 through January 2018, he was a member and associate of the Sailors Clique of MS-13 and that he engaged in a racketeering conspiracy that included extortion, drug trafficking, murder and a conspiracy to commit murder. The defendant is also charged with drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion. Flores-Reyes is in custody. 

According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.  Eleven other individuals were previously charged in this case with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, drug trafficking conspiracy and conspiracy to interfere with interstate commerce by extortion.

For a period of time beginning at least in 2015 through in or about 2017, members of the Sailors Clique, including Flores-Reyes, are alleged to have extorted owners of illegal businesses in the Langley Park and Wheaton areas of Maryland, with the extortion proceeds being sent to El Salvador to benefit MS-13.  In addition, between 2015 and 2018, members of the Sailors clique, including Flores-Reyes, are alleged to have trafficked narcotics, including marijuana and cocaine in Langley Park, Maryland, with the proceeds benefiting the gang.

More specifically, in January 2018, Flores-Reyes gave directions to members of MS-13 in Houston, Texas that they should purchase a gun and shoot rival gang members who were believed to have killed a member of MS-13.  On or about Jan. 28, 2018, members of MS-13 in Houston, Texas shot at and attempted to kill suspected rival gang members while Flores-Reyes and other MS-13 members, including MS-13 members in El Salvador, monitored the shooting by phone.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent until proven guilty at some later criminal proceedings.

Acting United States Attorney Stephen M. Schenning commended the HSI, FBI, DEA and Prince George’s County, Hyattsville, and Montgomery County Police Departments for their work in the investigation.  Mr. Schenning thanked Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section who are prosecuting this case.

St. Louis, MO – Dustin Lockwood, 23, of Arnold, was indicted today on charges of possessing firearms in a school zone and possession of a silencer.

On February 20, 2018, Lockwood was sitting in his vehicle in the parking lot of Fox High School in Arnold, Missouri.  Arnold Police Department and ATF responded after a school staff member contacted them and advised them of a rifle case in the rear of Lockwood’s black 2001 Toyota Corolla.  Search of the vehicle revealed a .22 caliber rifle, .22 caliber revolver, multiple spent shell casings throughout the vehicle, a suspected homemade silencer, and multiple bags and boxes in the trunk of the vehicle containing explosive related material, multiple knives, a machete, and .22 and 9mm caliber ammunition.  Lockwood indicated that he was at the school to pick up his sister.  He was taken into federal custody and charged on a criminal complaint.

If convicted, the charge of possession of a firearm in a school zone carries a maximum penalty of 5 years in prison and a $250,000 fine and the charge of possession of a silencer carries a maximum penalty of 10 years in prison and a $10,000 fine.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Arnold Police Department, St. Louis County Bomb Squad and the Jefferson County Police Department.  Assistant United States Attorney Rodney H. Holmes is handling the case for the U.S. Attorney’s Office.

As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty. 

SAVANNAH, GA: On March 13, 2018, members of the Federal Bureau of Investigation’s Southeast Georgia Violent Crimes Task Force arrested Robert Kimble, also known as “Bam” and “Ibn Yusuf,” on federal charges of armed bank robbery, brandishing a firearm during a crime of violence, and possession of a firearm by a convicted felon.  According to a superseding indictment that the federal grand jury returned last week, Kimble brandished a nine-millimeter semiautomatic pistol and used force, violence, and intimidation to steal $15,647.00 from a Navy Federal Credit Union branch on October 11, 2017.

Kimble is the second of two individuals to be charged with offenses related to the Navy Federal Credit Union robbery.  On January 10, 2018, the federal grand jury charged Jerrell Antonio Roberts, also known as “Zaiky Abdul Nabil,” with the same offenses for which Kimble was indicted more recently.  Savannah-Chatham Metropolitan Police Department detectives and officers apprehended Roberts within approximately 30 minutes of the robbery.  Roberts was arrested in the backyard of Kimble’s home in the Forest Park neighborhood of Savannah after Roberts ran from a vehicle that he had crashed while attempting to flee from police.  From Roberts’s vehicle, police officers recovered $15,647.00 in cash and a loaded nine-millimeter semiautomatic pistol.

If convicted of armed bank robbery, Kimble could be sentenced to 25 years in prison and a $250,000 fine.  In addition, the defendant faces a consecutive sentence of seven years’ imprisonment for brandishing a firearm during a crime of violence.  Possession of a firearm by a convicted felon is punishable by 10 years in prison.  All federal sentences must be served without the possibility of parole.

United States Attorney Bobby L. Christine praised the FBI and Savannah Police Department for working together to combat firearms-related violence: “This Office remains committed to protecting the citizens of this community through its partnerships with federal law enforcement and local police to ensure that armed robbers and those who abet them are brought to justice swiftly.”

Savannah Police Chief Mark Revenew stated, “This is an excellent example of our partnership with federal counterparts who join us in our commitment to remove armed criminals from our community.”

U.S. Attorney Christine emphasized that an indictment is only an accusation and is not evidence of guilt.  Both defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.

Assistant United States Attorney Theodore S. Hertzberg is prosecuting the case on behalf of the United States. FBI Task Force Officer Michael Rowan is leading the federal investigation. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.

HUNTINGTON, W.Va. – United States Attorney Mike Stuart issued the following statement this morning during a press conference held at the Sidney L. Christie Federal Building in Huntington:

Remarks as prepared for delivery

“Good morning.

Attorney General Sessions and this Administration is wholly committed to working with our federal, state and local partners to ensure the safety of our streets, our families and our children.  Frankly, we will no longer tolerate drug dealers, drug traffickers, violent criminals, or illegal guns on the streets of the City of Huntington. 

Our goal is simple- To make Huntington the “Safest City in America.” 

In what we are calling, “PROJECT HUNTINGTON”, I have ordered a surge of federal prosecutors in Huntington – doubling the number of prosecutors and, within weeks, tripling our office and we will add even more prosecutors as circumstances require.  My team is led by Assistant United States Attorney Monica Coleman, a veteran prosecutor with a record of aggressive, fearless prosecution and she will lead a team wholly dedicated to this effort.  The instructions to my team cannot be more clear – “Put violent criminals and bad guys behind bars, off our streets, and away from the public as long as possible.” 

I want to personally thank Mayor Williams, Huntington Interim Police Chief Dial, and Prosecutor Hammers for their partnership in this effort.  “PROJECT HUNTINGTON”would not be possible without their commitment and support.

In addition to Mayor Williams, Chief Dial, and Prosecutor Hammers, with me today are:

Supervisory Special Agent Wes Quigley, FBI

Assistant Special Agent in Charge David Gourley, DEA

Resident Agent in Charge Adam Black, ATF

Sharon Frazier, Cabell County Assistant Prosecutor

Monica Coleman, Assistant United States Attorney

With the assistance and commitment of our federal partners, “PROJECT HUNTINGTON” and a surge of prosecutionensures that every federal resource possible will be dedicated to working with our state and local partners to “Take Back These Streets” from those that bring havoc, chaos and despair to the Greater Huntington area. 

“PROJECT HUNTINGTON”ensures that Huntington’s “greatest days” lay ahead.

Thank you.”

Follow us on Twitter: @SDWVNewsand @USAttyStuart 
 
 
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BOSTON – A Boston man was sentenced today in federal court in Boston for selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.

Dominique Dozier, 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to 50 months in prison and six years of supervised release, during which time Dozier must stay away from the Orchard Gardens Housing Development area. In December 2017, Dozier pleaded guilty to two counts of distribution of cocaine base within 1,000 feet of a school.

On July 13, 2016, Dozier sold four bags of crack cocaine, which he described as “some fat ones,” to a cooperating witness in the lobby of his apartment building, which is near the Edna W. Bynoe Community Park in Roxbury. According to court documents Dozier has been convicted on nine separate occasions for 20 offenses that include violence, threats, weapons, and trafficking of drugs. Dozier is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to the Edna W. Bynoe Community Park.

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 Boston Police Commissioner William Evans made the announcement. 

A Cleveland man was indicted for two separate firearms crimes, as well as one involving drugs, U.S. Attorney Justin E. Herdman said.

Darren M. Monroe, Jr., 30, was indicted on one count of illegal possession of ammunition and by a felon and possession of crack cocaine with intent to distribute. In a separate indictment, he was charged with being illegal possession of a firearm by a felon.

Monroe had five rounds of .22 caliber ammunition and crack cocaine base on November 1, 2016.  He also possessed an H&R .22 caliber revolver and ammunition on January 27, 2018, according to the indictments.

Monroe is prohibited from possessing a firearm or ammunition because of three prior felony convictions for drug trafficking, according to the indictments.

The Cleveland Division of Police’s Neighborhood Impact Community Enforcement Unit, the Ohio State Highway Patrol, the RTA Transit Police, the Cuyahoga County Prosecutor’s Office, and ATF participated in the investigations.  Both cases are being prosecuted by Assistant U.S. Attorney James P. Lewis.

If convicted, the defendant’s sentence will be determined by the court after review of 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.

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

CINCINNATI – Fred Aundraus Gaston III, 44, of Cincinnati, pleaded guilty in U.S. District Court to a crime related to using a fake identity since 1999.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ben Sides, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service, Chicago Field Office announced the plea entered into before U.S. District Judge Timothy S. Black.

According to the Statement of Facts, beginning in 1999, Gaston created the identity and assumed the alias “Brandon Jordan Thomas.” Specifically, on May 18, 1999, he applied for a delayed birth certificate in Illinois using the made-up name. In June of that year, the state of Illinois issued the delayed birth certificate.

The next month, Gaston applied for a Social Security card using the name “Brandon Jordan Thomas” and was issued a new Social Security number. He obtained replacement Social Security cards in the fake name in August 1999, April 2007, November 2009 and June 2015.

Gaston also obtained an Ohio driver’s license under the alias and compiled a credit history in that name as well.

In February 2015, Gaston applied for a U.S. Passport at the post office in Milford, Ohio under the false identity and his own photograph. The application was ultimately denied because Gaston failed to respond to a follow-up request from the State Department to submit additional documentation to support the application.

In August 2017, when federal agents visited Gaston’s home, he identified himself as “Shawn Carter.” He was wearing a Rich Snob Entertainment t-shirt, the same company identified as the place of employment on both the “Brandon Jordan Thomas” passport application and a passport application that Gaston submitted under his true identity on a different date.

Gaston pleaded guilty to one count of making a false statement in a passport application. The parties involved in this case have recommended a sentence of one year of probation, and Judge Black will consider that recommendation at a future sentencing hearing. The defendant also agrees to forfeit the Ohio driver’s license, State of Illinois Delayed Record of Birth and Social Security card all in the name of “Brandon Jordan Thomas.”

U.S. Attorney Glassman commended the investigation of this case by the State Department and Special Assistant United States Attorney Timothy Landry, who is representing the United States in this case.

# # #

Three men were indicted in federal court for their roles in a counterfeiting conspiracy in which they passed more than $20,000 in counterfeit currency in nearly three dozen stores throughout Northeast Ohio, U.S. Attorney Justin E. Herdman said.

Named in the eight-count indictment are Labrawn Revelle Gullatt, Jr., 23, of Euclid; Yul Ardon Martin, Jr., 39 and Meco L. Shaw, 22, both of Cleveland.

“These defendants are accused of stealing tens of thousands of dollars from stores across Northeast Ohio,” Herdman said. “Whether it was buying merchandise from large stores, making relatively small purchases in an effort to get change or buy debit cards with fake cash, they broke the law and will now be held accountable for their actions.”

Gullat, Martin and Shaw conspired together between April 2017 through February 2018 to use counterfeit $50 bills to purchase merchandise from locations including Walmart in Sandusky, Mansfield and Cleveland, Home Depots in Highland Heights, Mentor and Euclid and Babies R Us in Mentor, according to the indictment.

They also made or attempted to make relatively small purchases with the counterfeit $50 bills, including a milkshake from Arby’s in Mentor and a sandwich from Chick-fil-A in Willoughy, according to the indictment.

They also made purchases in January 2018 with the counterfeit $50 bills from several stores in Aurora, including Adidas, Calvin Klein and Home Depot, a Dick’s Sporting Goods in Bainbridge. They also purchased or attempted to purchase several Master Card and American Express gift cards and debit cards using the counterfeit $50 bills, according to the indictment.

Keith Abrams, 42, of Cleveland, was indicted for passing $1,000 worth of counterfeit $50 bills at a Gap Store in Westlake on Nov. 21, 2017, according to the indictment

Assistant U.S. Attorney Brian S. Deckert is prosecuting the case following an investigation by the U.S. Secret Service.

If convicted, the defendants’ sentence will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ 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.

DAYTON – Lord Tyrone Al-Ahmin, 43, was sentenced in U.S. District Court to 180 months in prison and a seven-year term of supervised release for transporting women interstate to engage in prostitution.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Dayton Police Chief Richard S. Biehl announced the sentence handed down today by U.S. District Judge Timothy S. Black.

According to court documents, the FBI received information that a number of women engaged in prostitution at Al-Ahmin’s direction and control since 2005. Victims told law enforcement they were physically assaulted and threatened by Al-Ahmin.

One victim said she met Al-Ahmin in Dayton, when Al-Ahmin told the female he was a pimp and traveled around the country with women who engaged in prostitution. He told the victim she could work for him but she would be required to provide him with all of her prostitution proceeds. In exchange, he would provide her with food, clothing and heroin.

Al-Ahmin regularly carried a handgun and threatened to kill the female on a daily basis. He pointed the gun at her head and hit her in the face with the gun. He also told the female he had killed somebody in the past.

A second female victim met Al-Ahmin when he posed as a prostitution client and responded to her Backpage.com advertisement. Al-Ahmin picked the female up in his vehicle in Dayton, but rather than engage in any sexual activity, he purchased crack cocaine for the victim to use and drove her to Wisconsin.

He physically assaulted her on nearly a daily basis and threatened to kill her. He hit her, fractured her ribs, held a knife to her face and urinated in her mouth. Al-Ahmin also had non-consensual and aggressive sex with her. He told this victim he had killed four people in the past.

The Statement of Facts details that from August to October 2014, Ah-Ahmin transported at least three adult females from Dayton to other cities in Ohio, Minnesota, Wisconsin, Iowa, Texas and elsewhere to engage in prostitution.

In many of these cities, Al-Ahmin posted advertisements on Backpage.com to solicit prostitution clients. He sometimes paid for hotel rooms for use in servicing prostitution clients. Al-Ahmin was paid the money that the females received for sexual acts during their travels.

“The horrible facts of this case illustrate the reality of sex trafficking,” said U.S. Attorney Glassman.

Al-Ahmin pleaded guilty in June 2016 to three counts of transporting interstate for the purpose of prostitution. He was arrested by FBI agents in Las Vegas in January 2015.

U.S. Attorney Glassman commended the cooperative investigation by the FBI and Dayton Police Department, as well as Assistant United States Attorney Kyle J. Healey, who is representing the United States in this case. 

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A former bookkeeper pled guilty today in federal court for failing to report to the Internal Revenue Service (“IRS”) millions of dollars that she embezzled from her employers.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Lauren Ransom, 58, of Deerfield Beach, pled guilty to three counts of making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1).  The defendant’s sentencing hearing is scheduled for May 22, 2018 at 10:00 a.m., before U.S. District Judge Federico A. Moreno in Fort Lauderdale.  At sentencing, Ransom faces a maximum possible statutory sentence of three years in prison for each count, a $100,000 fine for each count and restitution.

According to stipulated facts filed with the court, for 33 years, the defendant worked as a bookkeeper at two South Florida insurance companies.  Ransom embezzled money from one of the company’s business accounts where she used her signatory authority on the accounts and wrote unauthorized company checks payable to “Cash” and “Lauren Ransom.”  She then cashed these checks or deposited them into her personal checking account.  Court information revealed that the defendant used the money to pay for her credit cards, mortgage and auto loans, insurance, and other personal living expenses.  Casino records also revealed that the defendant gambled and lost approximately $1,410,276.95 from December 1, 2008 to January 31, 2014 by playing slot machines.  The defendant concealed the embezzlement by altering numerous copies of these cancelled checks by “whiting out” and then changing the payee sections to create so-called legitimate business expenses for the insurance companies.  The defendant created false hand-written entries in the companies’ cash disbursement journals to further conceal the fraud.

In the stipulated facts filed with the court, Ransom admitted she filed false individual tax returns, Forms 1040, for tax years 2011, 2012, and 2013 because she knowingly failed to report to the IRS the money she had unlawfully obtained through her embezzlement scheme. The false statements resulted in tax losses.  As part of the plea agreement filed with the court, the defendant has further agreed to pay the tax losses and restitution to her former employers. 

Mr. Greenberg commended the investigative efforts of IRS-CI.  This case was prosecuted by Assistant United States Attorney Randy Katz.

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.

          SANTA ANA, California– An Orange County man has been indicted on wire fraud charges that allege a $6 million scheme that bilked investors who were promised large profits from the resale of tickets to high-profile sporting events.

          Seyed Reza Ali Fazeli, 49, a professional poker player who resides in Aliso Viejo, was named in a two-count indictment returned Wednesday by a federal grand jury.

          The indictment alleges that Fazeli ran a Las Vegas-based ticket business called Summit Entertainment, which also operated under the names onlinetickets.com and pacertickets.com. From May 2016 through at least May 2017, Fazeli solicited investors in Orange County, Houston and Las Vegas, Nevada to send approximately $6.2 million to Summit to purchase tickets to the 2017 Super Bowl and the 2018 World Cup. Fazeli allegedly told investors that Summit would resell the tickets at a substantial profit and share the proceeds with the investors.

          Investors wired more than $6 million to Summit to purchase tickets for last year’s Super Bowl, but after the event Fazeli failed to provide any profit distribution to investors, according to the indictment. Fazeli allegedly falsely told the victims that the ticket sales did not go well because the NFL prohibited their resale and that he was working on a settlement with the NFL.

          According to court documents, Fazeli never purchased large amounts of Super Bowl or World Cup tickets as promised. Instead, he used the money for gambling expenses at the Aria and Bellagio casinos in Las Vegas and for personal expenses.

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

          If he were to be convicted of the two charges in the indictment, Fazeli would face a statutory maximum penalty of 40 years in federal prison.

          Fazeli was arrested in this case by the FBI on February 14 pursuant to a criminal complaint. During a court hearing the next day, he was released on a $120,000 bond and was ordered to appear in United States District Court for an arraignment on March 26.

          Anyone who may have been victimized by Summit or Fazeli is encouraged to contact the FBI’s Los Angeles Field Office at 310-477-6565.

          The investigation into Fazeli is being conducted by the Federal Bureau of Investigation.

          This case is being prosecuted by Assistant United States Attorney Joseph T. McNally.

JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to illegally possessing a firearm.

Lorenzo Dwayne Kemp, 20, of Columbia, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a felon in possession of firearms. 

By pleading guilty today, Kemp admitted that he was in possession of a Smith and Wesson .380-caliber semi-automatic handgun and a Rohm .22-caliber revolver on Oct. 25, 2017.

Columbia police officers located a stolen vehicle, occupied by Kemp in the driver’s seat and another person in the passenger’s seat, on the morning of Oct. 25, 2017. The vehicle’s owner had reported earlier that morning that her 2003 Ford Expedition was stolen from her residence after she left the vehicle running and unlocked prior to going to work so that it would be warm for her commute.

Kemp and the passenger of the stolen vehicle both fled from police officers on foot. After a short pursuit, both men were arrested. As the officer who handcuffed Kemp assisted him off the ground, he noticed a black bag that was directly underneath him. The bag contained both firearms as well as 16 baggies of marijuana, which weighed approximately 28.75 grams.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Kemp has a prior felony conviction for forgery. He was sentenced in that state case on Oct. 23, 2017 (two days prior to his arrest in this federal case) to four years with a suspended execution of sentence and five years of probation.

Under federal statutes, Kemp is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
 

          SANTA ANA, California– A Laguna Beach man has pleaded guilty to a federal wire fraud charge and admitted that he stole $6.8 million from victims of three investment fraud schemes.

          Peter Heinrich Conrad Reinert, 63, pleaded guilty Wednesday before United States District Judge Josephine L. Staton.

          When he pleaded guilty, Reinert admitted running three separate schemes. In one scam, Reinert, who operated the Irvine-based Fazer Technologies, claimed he was developing, among other things, a product that could increase gas mileage for any car up to 150 miles per gallon. In another fraud, this one related to Global Encryption Imaging Corporation, Reinert claimed the company was developing, among other things, anti-counterfeiting technology to be used on state-issued identification documents. In the third scheme, Reinert told victims that another company he ran, Income from Waste Corporation, was developing a technology to convert used tires into oil.

          As part of the schemes, to gain legitimacy with victims, Reinert falsely claimed to be a United States Secret Service agent and a United States Marine. Reinert also falsely claimed that companies such as Tesla and General Electric were interested in Fazer’s product – and that Tesla had stolen Fazer’s technology and used it in their cars.

          Through various false claims, Reinert induced victims to send him approximately $6.8 million. The victims from these schemes came from around the nation and included farmers from Missouri.

          Instead of spending the victims’ money to develop the purported technologies, Reinert used the money to pay for personal expenses, luxury automobiles, sales commissions, purchases at Apple’s iTunes store, and wire transfers to an account in Poland.

          Judge Staton is scheduled to sentence Reinert on June 8, at which time he will face a statutory maximum sentence of 20 years in federal prison.

          As part of his plea agreement, Reinert agreed to forfeit approximately $300,000 that the FBI had seized in 2015, as well as a 2009 Mercedes Benz S63 AMG and a 2011 Mercedes Benz. 

          The investigation into Reinert was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The Department of Defense, the United States Secret Service, U.S. Customs and Border Protection, the State Department, and the Laguna Beach Police Department provided substantial assistance. 

          The case is being prosecuted by Assistant United States Attorneys Vibhav Mittal and Daniel Lim of the Santa Ana Branch Office.

As part of his office’s “prevention, preservation and prosecution” efforts, U.S. Attorney Andrew Birge encouraged the public to attend an upcoming community presentation at Grandville Public High School and announced the arrival in West Michigan of additional resources for the Drug Enforcement Administration.

            GRAND RAPIDS, MICHIGAN —   U.S. Attorney Andrew Birge invited the media to meet today with him and several partners from the community and law enforcement on how they are addressing the opioid crisis.

            “It’s a matter of saving lives,” U.S. Attorney Birge declared as he recounted the staggering statistics recently released:

•           Since 2009, drug overdose deaths have outpaced traffic accidents as the leading cause of injury death in the United States.

•           Life expectancy in the United States dropped for two years in a row after more than a century of steady progress.

•           The number of children admitted to hospitals for opioid overdose has nearly doubled since 2004, according to a study recently published in   the journal Pediatrics.

•           More people died of an overdose in 2016 than ever before-- and more than died in the entire Vietnam War.

•           The Centers for Disease Control identified Michigan as one of the states experiencing a significant increase in its drug overdose death rates through 2016; and up over 24% for women just last year, according to the United Health Foundation. 

•           Emergency Department visits for opioid overdoses rose 30% in all parts of the country from July of 2016 through September of 2017. Opioid overdoses were up 70% in the Midwest during that period.

•           Preliminary numbers from the Medical Examiner in Kent County for 2017 indicate that we lost at least 137 community members in this County to drug overdose deaths—a 50% increase over the preceding year, with more cases pending.                                                           

          U.S. Attorney Birge explained: “We also know that this trend started with prescription drugs.  Addiction to these drugs leads to heroin and worse, including fentanyl bought off the street.  About 80% of heroin users report using prescription drugs prior to heroin.”

          U.S. Attorney Birge then discussed the three ways his office is addressing the epidemic:

•           Prevention, educating the public and community members—especially our youngest—to discourage the new use of these dangerous drugs;

•           Preservation, furthering information about what can be done to protect those currently suffering from Substance Abuse disorders, teaming with medical and treatment professionals and those that provide overdose antidotes to the community; and

•           Prosecution, investigating and charging those that would profit from the spread of these dangerous substances in our community.

          In the area of prevention, the U.S. Attorney’s Office is teaming with Grandville Public Schools to host a community presentation on the epidemic in the Grandville High School Auditorium on March 19, 2018. “I cannot stress enough how important it is for parents and teenagers to understand this epidemic.  Teenagers learn and grow by making the occasional poor choice, but they can’t afford to make poor choices with opioids,” explained U.S. Attorney Birge.

          The Superintendent of Grandville Public Schools, Roger Bearup, spoke with the media about the upcoming presentation and discussion. “Grandville Public Schools is honored to partner with our state and national officials to provide this opportunity to raise public awareness of this very unfortunate crisis that plagues West Michigan and our country,” he offered.  In addition, Grandville Police Chief, Dan Steere, addressed the effect that opioids have had in his community.

          As for preserving the lives of those caught in the addiction spiral, Dr. Jeanne Kapenga talked about Families Against Narcotics (FAN) and how FAN educates the public and provides support for families facing addiction.  Dr. Kapenga will also present about the basics of addiction and recovery at the Grandville event.

          “My office, of course, enforces the law,” U.S. Attorney Birge said. “Enforcing the law deters the suppliers and saves lives.” He gave as an example his office’s prosecution last year of a physician from Albion, Dr. Horace Davis, for illegally prescribing opioid painkillers and committing healthcare fraud. And he highlighted the heroin trafficking conspiracy his office charged last fall against 28 people.  “We used the tools at our disposal to build that case, including wiretaps and the secrecy of the grand jury.  During the initial takedown, we seized over 21 kilograms of heroin, over 13 kilograms of cocaine and over $1.3M in cash.”  He added that his office prosecuted 50% more heroin cases and defendants last year than the year before and that he expects that rate to keep rising. “The federal penalties for drug trafficking are heavy; trafficking offenses can carry mandatory minimum penalties of five, ten, and twenty years and even life in prison, depending on the amount of drugs involved and criminal history. So my message for those who would turn people into addicts or take advantage of those who are already addicted, is the following: we’re going to use every tool we have to come looking for you and to prove your guilt and the federal sentences you will face if convicted are severe.

          On the subject of enforcement, Bruce McColley, the Assistant Special Agent in Charge of the Detroit Field Office of the Drug Enforcement Administration, and Cathy Gallagher, the Detroit Diversion Program Manager, addressed additional resources the DEA is bringing to West Michigan.  The Grand Rapids office of the DEA will have more agents installed to investigate diversion of prescription drugs to non-medical uses, which fuels the epidemic. U.S. Attorney Birge explained that the additional resources “will substantially improve our ability to deter and prevent prescription drugs from ending up in the wrong hands.”

Link to: Flyer - 2018 OPIOID Summit at Grandville Public Schools

END

JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., man pleaded guilty in federal court today to illegally possessing a firearm.

Justin Lee Denny, 27, of Sedalia, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a felon in possession of a firearm.

By pleading guilty today, Denny admitted that he was in possession of a Kel-Tec .380-caliber semi-automatic pistol on Nov. 21, 2017.

A Sedalia police officer was conducting a traffic stop on Nov. 21, 2017, but when the officer activated his emergency lights, Denny accelerated away from the patrol car. The officer activated his sirens and pursued Denny for about two blocks before Denny abruptly pulled over.

During the pursuit, the officer could see that Denny appeared to be moving something with his hands in the middle of the seat. When the officer approached his truck, Denny was nervous and his hands were visibly shaking. The officer noticed that Denny appeared to be attempting to conceal something under a bag next to him.

After the officer told Denny to step out of the truck, he admitted that there was a gun in the seat. The officer searched the truck and recovered the pistol, which had been reported stolen out of Sedalia, as well as a black pouch that contained several plastic Ziploc bags, including one baggie with suspected methamphetamine.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Denny has three prior felony convictions for possession of a controlled substance and two prior felony convictions for driving with a revoked/suspended license.

Under federal statutes, Denny is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Sedalia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
 

ALBUQUERQUE – This morning, a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Edgardo Torres-Ruvalcaba, 32, a Mexican national, with a cocaine trafficking offense arising out of the seizure of more than 40 pounds of cocaine at the Santa Teresa, N.M., Port of Entry on March 10, 2018.  Torres-Ruvalcaba was remanded into custody pending trial, which has yet to be scheduled.

U.S. Customs and Border Protection officers arrested Torres-Ruvalcaba on March 10, 2018, after seizing approximately 18.4 kilograms (40.4 pounds) of cocaine allegedly concealed in Torres-Ruvalcaba’s vehicle.  According to the criminal complaint, the agents found the cocaine while inspecting the vehicle at the Santa Teresa, N.M., Port of Entry.

If convicted of the charges in the criminal complaint, Torres-Ruvalcaba faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison.  Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.

This case was investigated by the Las Cruces office of Homeland Security Investigations.  Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.

Two people – one from Chardon, the other from Cleveland – were indicted for unrelated child pornography crimes.

Joshua A. O’Brian, 28, of Chardon, was charged with receiving visual depictions of minors engaged in sexually explicit conduct and transferring obscene materials to minors.

O’Brian knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between March and November 2017. O’Brian also knowingly transferred obscene matter to a minor female in Pennsylvania during the same time period, according to the indictment.

David M. Richards, 61, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.

Richards in October 2017 knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. On Feb. 21, 2018, Richards possessed an HP Pavilion laptop computer that contained child pornography, according to the indictment.

If convicted, the defendant’s sentence will be determined by the Court after review of 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.

Both cases are being prosecuted by Assistant U.S. Attorney Carol M. Skutnik. The O’Brian case was investigated by the FBI while the Richards case was investigated by the Department of Homeland Security, Homeland Security Investigations.

If convicted, the defendant’s sentence will be determined by the Court after review of 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 is being prosecuted by Assistant United States Attorney Carol M. Skutnik. 

A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.