FOR IMMEDIATE RELEASE                                           ContactELIZABETH MORSE

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

Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Erron Deon Robinson, age 32, of District Heights, Maryland today to ten years in prison, followed by five years of supervised release, for possession with intent to distribute 100 grams or more of a substance containing a detectable amount of fentanyl and being a felon in possession of a firearm.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Field Division; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; and Chief Peter Newsham of the Metropolitan Police Department, Washington D.C.

According to his plea agreement, in August 2017, law enforcement officers attempted to execute an arrest warrant for Robinson, which had been issued by the Superior Court for the District of Columbia. After apprehending Robinson, officers searched his residence and found a loaded Sig Sauer 9mm handgun, a loaded Glock 10mm handgun, a box of ammunition, approximately 175 grams of a substance containing a detectable amount of several substances, including furanyl fentanyl, fentanyl, and heroin, digital scales, a large bag of Mannitol powder, and $6,825.00 United States currency. 

Prior to August 23, 2017, Robinson had been convicted of a felony, which prohibited him from legally possessing firearms or ammunition.

United States Attorney Robert K. Hur praised the ATF, the Prince George Police Department, and the D.C. Metropolitan Police for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Michael Packard, who prosecuted the case.

Memphis, TN – Damenion Richmond, 36, was sentenced to 110 months in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant of the Western Division of Tennessee announced the sentence today.

According to information presented in court, on February 19, 2017, Mrs. Sheris Richmond called 911 to report her husband, Dameion A. Richmond, fired shots at her on the expressway after a verbal altercation at her home. Mrs. Richmond said she and her husband argued at the residence when he drew a handgun and pointed it at her face. He then fled the scene in his vehicle; Mrs. Richmond pursued him in her vehicle until he stuck a gun out of the window and fired shots at her along the way. Mrs. Richmond called 911 for police assistance and pulled into the parking lot of Click’s Pool Hall at 3705 Malco Way, in Memphis, Tenn.

U.S. Attorney D. Michael Dunavant said: "Reducing violent crimes committed with firearms is the top priority of this office and the Department of Justice. Prohibited persons in possession of firearms, such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to their families and the community at large. This is exactly the type of dangerous offender that the PSN Task Force is designed to target, and I commend their work in holding Richmond responsible and removing him from our streets."

When law enforcement arrived on the scene, Mr. Richmond was questioned and asked to step out of the vehicle. While searching the vehicle, Memphis Police Department officers discovered a Mauser .32 pistol where the defendant had been sitting. The magazine was empty, but the chamber still held one live round. Mr. Richmond admitted to possessing the gun but stated he only fired shots in the air. He also confessed to being a convicted felon. A further search of the vehicle yielded another weapon, a Smith and Wesson .22 caliber pistol with three magazines. Two of the magazines had 12 live rounds each and the third magazine had six live rounds.

Several small bags of drugs containing crack cocaine, marijuana, ecstasy and other pills were located in the vehicle. The defendant admitted to law enforcement that the guns and drugs were his property and did not belong to the passengers in the car.

The case was investigated by Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through aggressive investigation and prosecution. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

Assistant U.S. Attorney Raney Irwin prosecuted this case on the government’s behalf.

NEWARK, N.J. –Three men from New Jersey and another from Nevada were indicted today on additional charges stemming from their alleged advance-fee scheme that defrauded four victims of over $1 million, U.S. Attorney Craig Carpenito announced.

James Adkins, 65, of Hillside, New Jersey, Jerrid Douglas, 44, of Freehold, New Jersey, Roy Gillar, 45, of Las Vegas, Nevada, and Harold Mignott, 55, of Voorhees, New Jersey, were originally charged by indictment in December 2017 with one count of conspiracy to commit wire fraud and four counts of wire fraud, with Douglas and Gillar also being charged with one count of transacting in criminal proceeds. Today’s superseding indictment adds three counts of wire fraud against Adkins, two counts of wire fraud against Douglas, and one count of wire fraud against Mignott.

All four defendants are currently out on bail and will be arraigned at a later date before U.S. District Court Judge John Michael Vazquez in Newark federal court.

According to the superseding indictment:

From March 2016 through June 2016, Mignott, Adkins, Douglas, and Gillar allegedly agreed to defraud an entity identified in the superseding indictment as “Victim Company A” out of approximately $1 million.

As part of the scheme, the defendants convinced two individuals who ran Victim Company A to enter a joint-venture agreement with the defendants’ New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide Victim Company A with a “standby letter of credit” backed by Mexican gold bonds. A standby letter of credit is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.

Victim Company A wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint-venture agreement, Victim Company A agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.

In order to cover up the scheme and acquire Victim Company A’s funds, the defendants made numerous verbal and written misrepresentations, including providing a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion standby letter of credit to the defendants’ shell company.

However, after Victim Company A transmitted $800,000 to the defendants, they failed to provide Victim Company A with a standby letter of credit or anything of value. Instead, the defendants misappropriated Victim Company A’s money for their personal use on items like luxury cars, expensive watches, mortgage payments on their personal residences, and large cash withdrawals.

In addition, Adkins and Mignott allegedly defrauded a farmer from Iowa – identified in the superseding indictment as “Individual Victim 3” — out of $90,000 in 2013. As part of the scheme, Adkins and Mignott induced Individual Victim 3 to enter into a joint-venture agreement with their shell company and told the victim that if he provided them $90,000, they would provide him with a standby letter of credit so he could access financing for his pork business.

In order to persuade Individual Victim 3 to transfer the money, Adkins and Mignott told him that their company was going to complete lucrative oil and gas transactions that would yield significant revenues. However, after Individual Victim 3 transmitted $90,000, Adkins and Mignott did not provide him with money, a standby letter of credit, or anything of value.

Lastly, Adkins and Douglas allegedly defrauded an entity identified in the superseding indictment as “Victim Company B” out of approximately $250,000 in 2015. Adkins and Douglas induced the founder and owner of Victim Company B to enter a joint-venture agreement with their shell company. Adkins and Douglas falsely represented that their company could acquire and provide Victim Company B with a standby letter of credit, which would provide financing for Victim Company B’s biotech business operations.

Victim Company B wanted to obtain the standby letter of credit so it could fund business operations for cancer research as part of its biotech business. As part of the joint-venture agreement, Victim Company B agreed to pay Adkins and Douglas $1 million for the bank fee associated with the standby letter of credit.

However, after Victim Company B transmitted $250,000 of the $1 million to Adkins and Douglas’s shell company, Adkins and Douglas failed to provide Victim Company B with a standby letter of credit or anything of value. Instead, Adkins, Douglas, and others misappropriated the money for their personal use.

The conspiracy to commit wire fraud charge and the wire fraud charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The money laundering charges each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.

The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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Defense counsel:

Adkins: Kevin Buchan Esq., Holmdel, New Jersey

Douglas: Joseph Corazza Esq., Sparta, New Jersey

Gillar: Thomas Ashley Esq., Newark

Mignott: Eric Breslin Esq., Newark

MARTINSBURG, WEST VIRGINIA – Steven Robinson, of Baltimore, Maryland was sentenced today to 144 months incarceration for distributing heroin, United States Attorney Bill Powell announced. 

Robinson, also known as “H,” age 32, pled guilty to one count of “Conspiracy to Distribute Heroin” in January 2018. Robinson admitted to conspiring with others to distribute more than one kilogram of heroin with an illegal street value of more than $300,000 in Berkeley and Jefferson Counties and elsewhere from August 2015 to December 2016.

Assistant United States Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Elizabeth D. Grant, also with the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. 
 
Chief U.S. District Judge Gina M. Groh presided. 
 

FOR IMMEDIATE RELEASE                                          ContactELIZABETH MORSE

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

Baltimore, Maryland – A federal jury convicted Tynisha Martin Kadiri, age 39, of Baltimore, Maryland, on charges of assisting in the filing of false income tax returns and failure to file corporate tax returns.

The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

Evidence presented at the six-day trial showed that Kadiri, who owned three tax preparation businesses in west Baltimore, filed false and fraudulent tax returns for her client-taxpayers. These false returns included business receipts that the taxpayers did not receive, business losses that the taxpayers did not incur and false or fictitious businesses. These false statements resulted in the clients receiving larger refunds than they were entitled to. In addition, evidence presented at trial proved that Kadiri had not filed federal corporate income tax returns for her businesses for tax years 2014 and 2015.

Kadiri faces a maximum sentence of up to three years in prison per count and a fine of $250,000 for aiding or assisting in the filing of false income tax returns and one year in prison for willful failure to file a return.

United States Attorney Robert K. Hur commended the IRS for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Phil Selden and Matthew Maddox, who prosecuted the case.

MARTINSBURG, WEST VIRGINIA – Stephanie Edmonds, of Baltimore, Maryland, was sentenced today to two years probation for money laundering, United States Attorney Bill Powell announced. 

Edmonds, age 31, pled guilty to one count of “Conspiracy to Launder Monetary Instruments” in January 2018. Edmonds admitted to conspiring with others to conduct unlawful financial transactions in Berkeley and Jefferson Counties and elsewhere from August 2015 to December 2016.

Assistant United States Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Elizabeth D. Grant, also with the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. 
 
Chief U.S. District Judge Gina M. Groh presided. 

LAREDO, Texas – Three persons alleged to have been involved in engaging in the business of dealing in firearms without a license have made their initial appearances in federal court, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Fred Milanowski of the  Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Shane Folden, of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).

Authorities arrested Alejandro Rodriguez, 26, Alejandro Hernandez, 27, and Lewis Rodriguez, 28, all of Laredo, Thursday, April 12. Today, they made their appearance in Laredo federal court. They are set for a preliminary examination hearing on April 20, at 10:00 a.m. before U.S. Magistrate Judge Diana Song Quiroga.

According to the criminal complaint, on four separate occasions, federal agents purchased 11 AR-type rifles from the three men. Last week, agents seized another 12 AR-type rifles as part of an undercover operation. The charges allege two of those weapons were fully automatic firearms. None of the firearms had any identifying markings or serial numbers, according to the complaint.  

“ATF targets firearms smuggling organizations, because stopping the flow of weapons illegally exported from the United States is a top priority," said Milanowski. “These offenders and their networks must be dismantled, as they remain a serious threat here in the United States.” 

“Stopping the flow of weapons illegally exported into Mexico is an urgent priority for HSI,” said Folden. “HSI along with its federal partners will continue to target firearms smuggling organizations and dismantle the networks responsible for supplying these egregious offenders before they fall into the hands of drug cartels which pose a threat here in the United States and abroad.”

If convicted, each faces up to five years imprisonment and a possible $250,000 maximum fine.

ATF and HSI are conducting the investigation with the assistance of Border Patrol, U.S. Marshals Service and the Laredo Police Department. Assistant U.S. Attorney Giselle S. Guerra is prosecuting the case. 

 A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law. 

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ALBANY, NEW YORK – William C. Ruff, age 43, of Clifton Park, New York, pled guilty today to distributing child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Ruff admitted that on eight occasions between October 10, 2016 and December 17, 2016, he used file-sharing software to distribute child pornography over the Internet.  The pornographic videos and images depicted children as young as 3 years old. 

Ruff, who has been in custody since his arrest on December 21, 2016, is scheduled to be sentenced on August 15, 2018 by Senior United States District Judge Norman A. Mordue.  He faces at least 5 years and up to 20 years in prison, at least 5 years and up to lifetime post-imprisonment supervised release, and a maximum $250,000 fine.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Ruff will also have to register as a sex offender when he is released from prison.

This case was investigated by the FBI, with assistance from the Saratoga County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti. 

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ 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 about Project Safe Childhood, please visit http://www.justice.gov/psc/.

ALBANY, NEW YORK – Deloyd M. Lesane, age 38, of Syracuse, New York, pled guilty today to possession with intent to distribute crack cocaine and fentanyl.

The announcement was made by United States Attorney Grant C. Jaquith; Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Gouverneur Chief of Police Laurina Greenhill.

Lesane was selling crack cocaine and fentanyl from an apartment in Gouverneur in April 2017.  During a search of that apartment, agents recovered approximately 57.5 grams of crack cocaine, approximately 2.5 grams of fentanyl, approximately 19.7 grams of cocaine, a digital scale with cocaine residue, drug packaging material and $2,708 in U.S. currency.

If accepted by Senior United States District Judge Norman A. Mordue, the plea calls for Lesane to serve 120 months in prison when sentenced on August 27, 2018.

This case was investigated by members of the St. Lawrence County Drug Task Force, Gouverneur Police Department, and HSI.  The case is being prosecuted by Assistant U.S. Attorney Douglas G. Collyer.

ALBANY, NEW YORK – Jose Fontanez, age 36, of Schenectady, New York, pled guilty today to stealing firearms from Target Sports, Inc., a federally licensed firearms dealer in Glenville, New York.  Fontanez, whose criminal history includes a prior felony conviction, also pled guilty to possessing, concealing, and storing stolen firearms and being a felon in possession of firearms. 

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

As part of his guilty plea, Fontanez admitted that on the night of October 22, 2017, he and a co-conspirator broke into Target Sports while it was closed and stole more than 25 firearms from inside the gun store located on Saratoga Road.  The firearms included pistols, shotguns, and rifles.  With the assistance of various accomplices, Fontanez and his co-conspirator spent the following two days moving the stolen firearms between various locations in Schenectady and Amsterdam, New York, including private residences, a self-storage unit, and a motel.  Finally, as Fontanez further admitted, on October 24, 2017, he and his co-conspirator, with the help of yet more accomplices, transported the stolen firearms to Rochester, New York.  

Fontanez is scheduled to be sentenced on August 15, 2018 by Senior United States District Judge Norman A. Mordue.  He faces up to 10 years in prison on each count of conviction, for a total of 30 years; a maximum $750,000 fine; and up to 3 years of post-imprisonment supervised release.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. 

This case is being investigated by the ATF, New York State Police, and the Glenville Police Department, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joseph A. Giovannetti.

United States Attorney Ron Parsons announced that a Rockford, Illinois, woman has been indicted with Distribution of Heroin Resulting in Death in the District of South Dakota as part of a concerted national effort by the U.S. Department of Justice, working closely with state and local law enforcement, to combat opioids by prosecuting drug dealers to hold them accountable for the deaths and serious injuries of overdose victims.  Under federal law, anyone who illegally provides a controlled substance to another person who then overdoses from using that substance is subject to a mandatory minimum sentence of at least twenty years in federal prison.

Earlier this month, Stephanie Broecker, age 26, was indicted by a federal grand jury in Sioux Falls for selling the heroin that led to the death of a 30-year-old man in Miner County, South Dakota.  The man, identified as K.P. in court documents, was found dead from an apparent heroin overdose at a residence in rural Miner County on November 19, 2017.  Broecker was located and arrested in Illinois.  She appeared before a federal magistrate judge in the Northern District of Illinois on April 10, 2018, and is currently in the custody of the U.S. Marshals awaiting transfer to South Dakota to face the federal charges.  If convicted, Broecker faces a minimum of twenty years and a maximum of life in prison.

“It is a senseless tragedy that we have lost another life because of illegal drugs,” said U.S. Attorney Parsons.  “The opioid epidemic has inflicted an unprecedented toll of addiction, suffering and death on communities throughout our nation, and South Dakota has not been untouched.  By holding drug dealers directly accountable for the devastation they cause, we help bring some measure of justice to their victims' loved ones and send a powerful message that these crimes will not be tolerated.”

The United States currently faces the deadliest drug crisis in history.  In 2016, approximately 64,000 Americans – the equivalent of almost one-third of the population of Sioux Falls – lost their lives to drug overdoses, the fastest increase and highest drug death toll in American history.  For Americans under the age of 50, drug overdose is now the leading cause of death.  This plague is being driven primarily by opioids – prescription painkillers, heroin, and synthetic drugs like fentanyl, which is 50 times more potent than heroin.  Ingesting even a small amount of fentanyl can result in death.

In 2016, 67 South Dakotans died of drug overdoses, more than half of which were classified as opioid poisoning.  In 2017, 10 people died from opiate-related overdoses in Minnehaha County alone and it is on track to exceed that number this year.  There have been at least three heroin or fentanyl overdose deaths in Sioux Falls in the past month.

Attorney General Jeff Sessions has directed all United States Attorneys to use every available tool to combat this deadly epidemic.  The United States Attorney’s Office is committed to this mission and actively working with state, local, and tribal law enforcement to prevent and combat all drug-related deaths in South Dakota.  As part of that effort, our District has designated an Assistant United States Attorney to serve as the Opioid Coordinator to implement our strategy in combatting opioids, with a strong focus on prosecuting cases involving prescription opioids, heroin and fentanyl.

Over the past several months, federal prosecutors have been meeting and working with law enforcement agencies across the state to help investigate incidents of overdose, trace the source of the drugs up the chain of distribution, and bring either federal or state charges against those responsible for selling or providing the drugs.

Broecker is the most recent individual to be indicted on federal charges in South Dakota since this initiative began.  The United States Attorney’s Office is working closely with the South Dakota Division of Criminal Investigation, the Miner County Sheriff’s Office, the Minnehaha County Coroner’s Office, and the United States Postal Inspection Service in prosecuting this case.  Many more such investigations are in progress across the state.

“Every overdose should be considered a crime scene,” said U.S. Attorney Parsons.  “Dealers or anyone else who illegally diverts or provides drugs to another should know that any time there is an overdose, we are going to come looking for you.  You will be arrested, you will be charged, and you will be held accountable.”

On Wednesday of this week, U.S. Attorney Parsons will be appearing at the joint conference of the South Dakota Police Chiefs’ Association and South Dakota Sheriffs’ Association in Deadwood to discuss coordinated strategies to combat this drug epidemic.  “Our state, local, and tribal law enforcement partners do a tremendous job in investigating these crimes,” he said.  “My orders are to do everything we can to support them at the federal level and provide additional tools for ensuring that these criminals who are poisoning our communities are stopped.”

The charges and allegations contained in an indictment are merely accusations and defendants are considered innocent unless and until proven guilty.

SPRINGFIELD, Ill. – The manager of a Springfield, Ill., establishment known as Mystic Enchantments has been arrested and charged by complaint in an ongoing investigation of distribution of synthetic cannabinoids, known as Spice or K2. Letha Dean, 71, of Salisbury, Ill., was arrested on April 13, and was ordered detained in the custody of the U.S. Marshals Service. Dean appeared this afternoon before U.S. District Judge Sue E. Myerscough and waived preliminary hearing. The complaint charges Dean with possession with intent to distribute a controlled substance.

Dean is the eighth defendant charged in a continuing task force investigation of the distribution of synthetic cannabinoids in Central Illinois. This task force, part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, is led by the DEA with the Illinois Attorney General Investigations; Illinois State Police; FBI; Decatur Police Department; Springfield Police Department; Illinois Department of Revenue; and IRS-Criminal Investigation. OCDETF is a Department of Justice program that supports multi-jurisdictional task forces of federal, state and local law enforcement agencies to conduct long-term and complex investigations and prosecutions of drug-related crimes. Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases on behalf of the U.S. Attorney’s Office for the Central District of Illinois.

According to publicly disseminated DEA drug fact information, K2 and Spice are two of the many trade names or brands for synthetic cannabinoids which are human-made, mind-altering chemicals developed to mimic the effects of THC, the main active ingredient of marijuana. They are often marketed under the guise of “herbal incense” or “potpourri.” The synthetic cannabinoids are typically marketed in rectangular, heat-sealed packets with brightly colored wording and street names to appeal to a youthful crowd, such as “Scooby Snax,” “Mr. Happy,” California Dream,” “Hayz,” “AK47,” “OMG,” “Down2Earth,” etc.

Dean was arrested on April 13, at Mystic Enchantments’ current location, 1020 W. Lawrence Ave. in Springfield. Mystic Enchantments previously operated at 2828 E. Clear Lake Ave., Springfield, in the same building with The Crossing II, a liquor store. According to the affidavit filed in support of the criminal complaint, Dean was employed by the manager of The Crossing II to manage the distribution of synthetic cannabinoids from Mystic Enchantments.

As alleged in the complaint affidavit, on April 13, an undercover law enforcement officer met with Dean at Mystic Enchantments, and purchased 520 packets of suspected synthetic cannabinoids for $5,000. As the undercover officer exited the store carrying the packets in a black plastic garbage bag, agents entered the store and arrested Dean. Immediately after her arrest, agents searched the location and recovered approximately 1,445 additional packets from the back room. As a result of the undercover purchase and search of the store, agents recovered a total of approximately 1,967 packets, containing approximately 11,800 grams or 11.8 kilograms of suspected synthetic cannabinoids.

In February 2018, four men were charged by indictment with conspiracy to possess with intent to distribute and to distribute a controlled substance, namely synthetic cannabinoids or K-2. Trial is currently pending for Mohanad Al-Matarneh, of Chicago; Walid Alanasawi and Jamal Nasir, both of Decatur, Ill.; and Abdulrhamn Saleh of Hamtramck, Mich.

The indictment alleges that Alanasawi, Nasir, Saleh, and others, agreed to distribute and did distribute K-2 containing controlled substances and controlled substance analogues, from retail stores in Decatur, including JB’s, United Discount, Gold Star, Handy Pantry, Cigar Outlet, Tobacco Express, and BJ’s Mini-Mart. As part of the alleged conspiracy, Alanasawi, Nasir and Saleh agreed to obtain synthetic cannabinoids from Al-Matarneh in St. Louis, where he and others allegedly operated a clandestine laboratory. As alleged in the indictment, on Nov. 13, 2015, after departing the St. Louis laboratory, Al-Matarneh possessed with intent to distribute and attempted to distribute to the three co-defendants more than 100 kilograms of synthetic cannabinoids.

Trial is scheduled in June 2018, for Abdu Saleh Mohamed, of Decatur. The indictment, returned by the grand jury on Jan. 3, 2018, alleges that Mohamed agreed to distribute and did regularly distribute synthetic cannabinoids or K-2 from his retail store, BJ’s Mini-Mart, in Decatur. As part of the conspiracy, the defendant agreed with other store owners / operators to obtain synthetic cannabinoids from a source in St. Louis. On or about July 16, 2014, the indictment alleges Mohamed possessed with intent to distribute more than nine kilograms of synthetic cannabinoids at his storage facility in Decatur.

Two additional men have pleaded guilty and are awaiting sentencing related to the ongoing investigation. Noman Hizam, of Decatur, pleaded guilty on March 2, 2018, to attempted possession with intent to distribute and possession with intent to distribute synthetic cannabinoids.

According to court documents, Hizam owns multiple stores in the Decatur area, including Handy Pantry, 3715 N. Woodford; the Cigar Outlet at 1247 E. Mound; and Tobacco Xpress 1101 N. Route 48. Sentencing for Hizam is scheduled on July 6, 2018.

Mohamed Ali Saleh, of Hamtramck, Mich., pleaded guilty in May 2017, to conspiracy to distribute synthetic cannabinoids or K-2 from January 2015 to May 2016. Saleh is scheduled to be sentenced on May 10, 2018.

Each defendant, if convicted, faces the same statutory penalty of up to 20 years in prison.

Members of the public are reminded that complaints and indictments are merely accusations; the defendants are presumed innocent unless proven guilty.

          The former President & CEO and the former vault manager of Northwest Territorial Mint, a now-bankrupt company dealing in precious metals, were indicted last week for 20 federal felonies resulting from a Ponzi-like scheme that defrauded customers of millions of dollars, announced U.S. Attorney Annette L. Hayes.  BERNARD ROSS HANSEN, 57, aka Ross B. Hansen and DIANE RENEE ERDMANN, 45, aka Diane Renee, both of Auburn, Washington will make their initial appearances on the indictment at 2:00 Monday, April 16, 2018.

            Northwest Territorial Mint (NWTM) operated both a custom business that involved the manufacturing of medallions, coins, and other awards, and a bullion business that involved the selling, buying, exchanging, storing, and leasing of gold, silver, and other precious metals.  The company had offices in Federal Way and Auburn, Washington, but declared bankruptcy on April 1, 2016.

          The indictment alleges that between 2009 and 2017, HANSEN and ERDMANN defrauded NWTM customers in a variety of ways.  HANSEN and ERDMANN lied about shipping times for bullion, improperly used customer money to expand the business to other states, and used customer money to pay their own personal expenses.  By at least 2012, the company lacked enough assets to fulfill customer orders and used new customer money to pay off older customers in a Ponzi-like scheme.  In total, over 3000 customers paid for orders, or made bullion sales or exchanges, that were either never fulfilled or never refunded.  The total loss to these customers was more than $25,000,000.  

            In addition to the customer fraud, in April 2016, more than fifty people who stored their bullion with NWTM found all of part of their bullion worth $4.9 million was missing; twenty customers involved in a bullion leasing program were also defrauded of more than $5 million; and a Canadian silver bullion producer was defrauded of more than $1 million in silver bullion.  

            Between 2012 and 2016, HANSEN and ERDMANN took more than $1 million dollars out of the company accounts for their own use.  In addition, during this time frame, they transferred some $120,000 in cash from the company to ERDMANN’s checking account and used $400,000 in company funds to pay their personal credit card bills.  Finally, between March 2016 and June 2017, ERDMANN sold more than $700,000 worth of precious metals, including gold and silver bullion, and used the proceeds for the benefit of herself and HANSEN.

            The indictment charges the pair with ten counts of mail fraud and ten counts of wire fraud.  Each of the charges are punishable by up to 20 years in prison.

            The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

            The case is being investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI).  The case is being prosecuted by Assistant United States Attorney Brian Werner.

CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today a Wood County man was sentenced in connection with a federal methamphetamine charge.  Timothy Waldron, 31, of Mineral Wells, was sentenced by United States District Court Judge John T. Copenhaver, Jr.  to 12 years in federal prison for  possession with intent to distribute 500 grams or more of methamphetamine.  Stuart praised the work of the Parkersburg Drug Task Force.

“This sentence should send a message to anyone thinking about distributing methamphetamine in the Southern District of West Virginia,” said United States Attorney Mike Stuart.  “Unless you want to be locked up, it’s just not a good idea.”

Waldron previously pled guilty in January admitting that he possessed methamphetamine seized from a safe in his Mineral Wells residence for distribution. The approximately 1300 grams of methamphetamine had been found during execution of a search warrant at defendant’s residence by agents of the Parkersburg Drug Task Force on November 20, 2016. 

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

Follow us on Twitter: @SDWVNewsand @USAttyStuart 

 
 
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HUNTINGTON, W.Va. – A Detroit man who was caught with heroin in Huntington in 2015 was sentenced to 49 months in federal prison today, announced United States Attorney Mike Stuart.  JaJuan Thrasher, 30, previously pled guilty in January to possession with intent to distribute heroin. Stuart commended the work of the Huntington FBI Drug Task Force.

“Detroit drug dealers are soon to be a mere footnote in Huntington’s history,”  said United States Attorney Stuart.  “Thrasher is just the latest to be going to federal prison as a result of our efforts.”

On September 14, 2015, members of the Huntington FBI Drug Task Force executed a search warrant at 2317 Lincoln Avenue, Apartment A in Huntington.  When investigators executed the warrant, they located Thrasher and two additional individuals inside the residence.  Investigators subsequently seized approximately 18 grams of heroin, which was packaged for distribution, from Thrasher’s pocket.  Thrasher admitted to investigators that he had been engaged in distributing heroin in the Huntington area.  As part of his plea, Thrasher also admitted that he and others used the Lincoln Avenue apartment to distribute heroin between the summer of 2015 and September 14, 2015.

Assistant United States Attorney Joseph F. Adams handled the prosecution.  United States District Court Judge Robert C. Chambers imposed the sentence.

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

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Defendant had a felony child abuse conviction in Florida and a prior removal

HUNTINGTON, W.Va. –  Alan Lopez-Salazar pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Mr. Lopez-Salazar, 29, of Mexico, faces up to 10 years of incarceration, a 250,000 dollar fine, supervised release for three years, and a special assessment when he is sentenced on May 21, 2018 by United States District Judge Robert C. Chambers.  He also faces removal proceedings at the conclusion of any sentence of incarceration.   United States Attorney Mike Stuart praised the work of  the Cabell County Sheriff’s Department and Immigration and Customs Enforcement (ICE). 

“We are committed to prosecuting every single individual who enters the United States illegally,” said United States Attorney Mike Stuart.    “Legally entering the United States is not complicated.  Get in line and follow the rules, and if you don’t, we’re sending you back home.”

On January 31, 2018, Mr. Lopez-Salazar was arrested by the Cabell County Sheriff’s department for disturbing the peace and destruction of property.  After giving a Mexican identification document, ICE agents were contacted and responded to the scene. Immigration and Customs Enforcement agents confirmed that Mr. Lopez-Salazar was not in the United States legally and he was taken into federal custody.  Fingerprints taken from the defendant matched him to a felony conviction and a prior removal in 2011.   The felony conviction occurred on August 23, 2011 in Collier County, Florida where, defendant was convicted of felony child abuse.  After this conviction Mr. Lopez-Salazar was removed from the United States on October 11, 2011   Mr. Lopez-Salazar then reentered the United States without legal permission from the Secretary of Homeland Security.  Mr. Lopez-Salazar is a citizen of Mexico.

Assistant United States Attorneys Erik S. Goes and Stephanie Taylor are handling the prosecution.

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          The owner of Orient Seafood Production of Fife, Washington, pleaded guilty today in U.S. District Court in Seattle to conspiracy to violate the Lacey Act, announced U.S. Attorney Annette L. Hayes. HOON NAMKOONG admits that between August 2014, and November 2016, he conspired with others to underreport the amount of sea cucumbers purchased for processing by approximately 250,000 pounds.  The post-processing market value of the sea cucumbers is nearly $1.5 million.  HOON NAMKOONG is scheduled for sentencing in front of Chief U. S. District Judge Ricardo S. Martinez on July 20, 2018.

            According to records filed in the case, HOON NAMKOONG purchased sea cucumbers from both tribal and non-tribal fishers in the Puget Sound region.  Sea cucumbers are classified as shellfish, and harvests are regulated by both Washington State and Tribal authorities.  To protect the resource, the harvests are tracked by fish tickets signed by both the fisher and the purchaser.  HOON NAMKOONG admits that he falsified fish tickets, failed to prepare fish tickets or retain confirmation of fish tickets submitted by third parties, and frequently paid fishers in cash for their sea cucumbers so there would be no financial record of the total amount of sea cucumbers taken.  Falsifying fish tickets, and processing and selling in interstate or foreign commerce illegally obtained shellfish is a violation of the Lacey Act, the federal law that prohibits illegal trafficking in wildlife, fish, and plants. 

                HOON NAMKOONG’s company processed the sea cucumbers and sold and transported them to wholesale seafood buyers in both the U.S. and in Asia, for a gain of nearly $1.5 million.  

                Under the terms of the plea agreement, HOON NAMKOONG will pay up to $1,499,999 in restitution.  Prosecutors agreed to recommend no more than 30 months in prison for HOON NAMKOONG.  The ultimate sentence will be up to Chief Judge Martinez.

            Conspiracy to Violate the Lacey Act is punishable by up to 5 years in prison and a $250,000 fine.

            The case was investigated by the NOAA Office of Law Enforcement and the Washington State Department of Fish and Wildlife.

            The case is being prosecuted by Assistant United States Attorneys Matthew Diggs and Seth Wilkinson.

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Jennifer Marie Trengove, 41, of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve 105 months in federal prison for committing three bank robberies in Anchorage last May.  Trengove previously pleaded guilty in August 2017 to three counts of bank robbery.

According to court documents, Trengove robbed three different branches of Alaska USA Federal Credit Union during a spree between May 24 and May 26, 2017.  Trengove committed the robberies at the E. Dimond Blvd. branch on May 24, at the E. Northern Lights Blvd. branch on May 25, and at the Hartzell Road branch on May 26.  At each robbery, Trengove walked up to a teller station and presented a demand note to the teller.  It was later determined by law enforcement officers that Trengove had not been carrying a firearm during the robberies. 

At the sentencing hearing, Judge Burgess noted that Trengove had a long history of committing serious crimes dating back to when she was 13 years old.  The previous convictions included a 2012 federal conviction for bank robbery in Oregon.  Judge Burgess also noted that Trengove had a long history of substance abuse and mental health issues, and had been through multiple treatment programs, which had not prevented her from continuing to commit more crimes to support her drug dependency issues.  Judge Burgess commented that there was little he could do at this point other than to protect the public by sentencing Trengove to a lengthy prison sentence.

The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case.  This case was prosecuted by Assistant U.S. Attorney Joseph W. Bottini.

LONDON, Ky.– On April 11, 2018, a federal jury convicted London physician Dr. Anis Chalhoub of health care fraud.  The jury returned its guilty verdict after twelve days of trial, during which it heard evidence that Dr. Chalhoub defrauded Medicare, Medicaid, and other insurers by implanting medically unnecessary pacemakers in his patients and causing the unnecessary procedures and follow-up care to be billed to health insurance programs.

Between 2007 and 2011, Dr. Chalhoub implanted approximately 234 pacemakers in patients at St. Joseph London hospital.  The evidence at trial showed that dozens of those patients’ pacemakers were medically unnecessary, under well-established national guidelines and Medicare coverage rules.  A number of patients testified at trial that Dr. Chalhoub pressured them into getting the procedures and told them misleading information about their health conditions.  For instance, several patients recalled Dr. Chalhoub telling them that they might die without a pacemaker.  Sinus node dysfunction, the diagnosis Dr. Chalhoub gave the patients, is a non-fatal condition.  The jury also heard evidence that Medicare, Medicaid, and other insurers suffered hundreds of thousands of dollars in losses from Dr. Chalhoub’s unnecessary procedures.

United States Attorney Robert M. Duncan, Jr., Derrik L. Jackson, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Division; and Amy Hess, Special Agent in Charge for the Federal Bureau of Investigation, Louisville Field Division, jointly announced the verdict. 

The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the U.S. Attorney’s Office for the Eastern District of Kentucky.  Assistant United States Attorneys Andrew E. Smith and Paul C. McCaffrey represented the United States in the case.

Chalhoub is currently scheduled to be sentenced on August 14, 2018 in London, Kentucky, by U.S. District Court Judge Gregory F. Van Tatenhove.  He faces a maximum of 10 years imprisonment.

A three-count indictment was unsealed today in federal court in Central Islip, New York, charging Blake Kantor, also known as “Bill Gordon,” with conspiracy to commit wire fraud, obstruction of an official proceeding and making false statements to Special Agents of the Federal Bureau of Investigation.  Kantor was arrested by federal authorities today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and James McDonald, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), announced the charges. 

As alleged in the indictment, in March 2014, Kantor established a company known as Blue Bit Banc or Blue Bit Analytics, Ltd. (“BBB”) that sold binary options, a type of investment in which investors are promised an opportunity to be paid predetermined amounts based upon the particular price of securities, commodities or other investments at particular points in time.  To establish Blue Bit Banc, Kantor used approximately $10,000 drawn from a bank account established at a TD Bank branch located in Suffolk County within the Eastern District of New York.  From approximately 2014 to 2017, Kantor and others solicited and took in approximately $2.1 million from approximately 713 investors in BBB’s binary options.  Kantor did not inform those investors, however, that a computer software used by BBB allowed BBB to fraudulently alter data associated with binary options investments so that the probability of investors earning a profit favored BBB and disadvantaged investors.  To further the scheme, Kantor directed the opening of bank accounts—including one in the island nation of St. Kitts and Nevis—using aliases and the identifying information of other people.  Kantor further converted monies that investors invested into ATM Coin, a worthless cryptocurrency that Kantor misleadingly told investors was worth substantial sums of money. 

As also alleged in the Indictment, in October 2017, Kantor directed a co-conspirator to alter lists of BBB customers after FBI agents informed Kantor that they were investigating his involvement in binary options.  Thereafter, Kantor met with FBI agents and falsely stated in substance that he had not been involved in binary options since August 2013 when, in reality, he had established BBB around March 2014 and was employed there until around October 2017.

“As alleged, Kantor used a computer program to generate manipulated data to cheat hundreds of investors out of their hard-earned savings,” stated United States Attorney Donoghue.  “To cover-up his fraudulent scheme, Kantor then lied to the FBI and ordered the alteration of documents that would assist agents in identifying his victims.  We will continue to work closely with our law enforcement partners to vigorously prosecute individuals who defraud the investing public and obstruct law enforcement’s ability to detect and prosecute financial crimes.”

“The all-or-nothing option Kantor’s victims were offered at the onset of their investment had a predetermined ending, one in which they stood to face significant financial losses, as alleged,” stated FBI Assistant Director-in-Charge Sweeney.  “The odds were stacked against them from the beginning, while Kantor had everything to gain.  The FBI will continue to be a major force in confronting those who think they can evade the law and make an easy profit off the misfortune of others.”

“In addition to enforcing the nation’s tax laws, the Special Agents of IRS-Criminal Investigation take particular interest in cases where our expertise is warranted to uncover allegations of financial fraud,” stated IRS-CI Special Agent-in-Charge Robnett.  “The allegations outlined in this indictment detail acts of deceit and offshore money movement in the evolving world of cryptocurrency, which impacts the trust investors have with our financial system.”

“The CFTC is committed to working in parallel with our law enforcement partners to ensure that fraudsters in our markets are brought to justice and customers are protected,” stated CFTC Division of Enforcement Director McDonald.  “This type of coordination is particularly important in cases like this one, where the alleged scheme stretched across multiple markets, including the market for virtual currencies.”

If convicted, Kantor faces a maximum term of imprisonment of 20 years on each of the conspiracy to commit wire fraud and obstruction of an official proceeding charges and five years on the false statements charge. 

The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Bradley T. King and Madeline M. O’Connor are in charge of the prosecution.

The Defendant:

BLAKE KANTOR (also known as “Bill Gordon”)
Age:  42
Residence: Manhattan, New York

E.D.N.Y. Docket No. 18-CR-177 (SJF)