United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin announced today that three defendants agreed to plead guilty to an Information charging them with federal crimes related to a long-term fraud scheme led by Brian L. Ganos involving government-funded contracts intended to benefit small businesses.  The three defendants are James E. Hubbell (age: 50) of Sussex, WI, Jorge Lopez (age: 57) of Worthington, Minnesota, and Telemachos Agoudemos (age: 43) of Big Bend, WI. 

According to the charges, the scheme involved Ganos, Hubbell, and others operating construction companies with straw owners who qualified as a disadvantaged individual or as a service-disabled veteran, but who did not actually control the companies.  The scheme participants fraudulently obtained small business program certifications to win millions of dollars in government-funded contracts to which they were not entitled.  Specifically, the following is alleged: 

• Nuvo Construction Company, Inc. (Nuvo”) was misrepresented to be majority-owned and controlled by Lopez to obtain certifications as a Small Disadvantaged Business from the U.S. Small Business Administration and as a Disadvantaged Business Enterprise from Milwaukee County.  In reality, Lopez worked full-time for a different entity in Minnesota and did not actually control Nuvo.

• C3T, Inc. was misrepresented to be majority owned and controlled by Agoudemos to obtain verification as a Service-Disabled Veteran-Owned Small Business.  In reality, for long stretches, Agoudemos had virtually no involvement in C3T.

Hubbell and Lopez agreed to plead guilty to conspiring to defraud the United States by virtue of the scheme in violation of 18 U.S.C. § 371.  Agoudemos agreed to plead guilty to making false statements to federal agents in order to conceal that C3T, Inc. did not qualify as a Service-Disabled Veteran-Owned Small Business in violation of 18 U.S.C. § 1001.  The maximum penalties for these offenses is five years in prison and a $250,000 fine.

Earlier this month, on April 3, 2018, charges were filed against four defendants in two cases that are related to today’s charges.  First, in Case No. 18-CR-62, an indictment was filed charging Brian L. Ganos (age: 57) of Muskego and Mark F. Spindler (age: 56) of Menomonee Falls, and the business Sonag Company, Inc. with crimes related to the fraud scheme.  The indictment also alleged that Ganos engaged in money laundering with proceeds from the scheme. The indictment included a forfeiture notice indicating that the United States seeks to forfeit a condominium located in Winter Park, Colorado; the office building used by the companies at 5500-5510 West Florist Avenue, Milwaukee, Wisconsin; a 2014 Chevrolet Corvette Stingray Convertible; and more than $2.2 million seized from two bank accounts.  Each of those assets is subject to civil forfeiture actions filed by the United States.  

Second, in Case No. 18-CR-64, Nicholas Rivecca agreed to plead guilty to an Information charging him with conspiring with Ganos and others to use Nuvo’s DBE status to win government-funded concrete orders.  Rivecca and Ganos were the co-owners of Sonag Ready Mix, LLC, which is alleged to have filled the concrete orders in Nuvo’s name.  

The following agencies are participating in the investigation that led to these charges: the Federal Bureau of Investigation; U.S. General Services Administration, Office of Inspector General; Department of Veterans Affairs, Office of Inspector General; Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; U.S. Department of Transportation, Office of Inspector General; U.S. Small Business Administration, Office of Inspector General, Investigations Division; Defense Contract Audit Agency; and U.S. Army Criminal Investigations Command Major Procurement Fraud Unit.      

The cases are being prosecuted by United States Attorney Matthew D. Krueger and Assistant United States Attorney Zachary J. Corey.  The related civil forfeiture cases are being prosecuted by Assistant United States Attorney Scott J. Campbell.

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For Additional Information Contact:

Public Information Officer Dean Puschnig 414-297-1700

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Patrick Hynes, age 21, of Tobyhanna, Pennsylvania, pleaded guilty on April 17, 2018, before U.S. District Court Judge A. Richard Caputo to conspiracy to distribute heroin and cocaine.  

According to United States Attorney David J. Freed, Hynes admitted to participating in a conspiracy to distribute between 40 and 60 grams of heroin (which is equivalent to 1,600 to 2,400 individual doses of heroin), as well as additional quantities of cocaine, in the Monroe County area between May and July 2015.  Davis was one of eleven individuals indicted by a grand jury in July 2015, and charged with conspiring to distribute heroin and cocaine in the Monroe County area.

Judge Caputo ordered a presentence report to be completed.  Sentencing will be scheduled at a later date.

The investigation was conducted by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department.  Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  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.  

This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

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

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

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The charges against these four defendants are the result of an investigation by the West Central Drug Task Force, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of this case is being handled by Assistant U.S. Attorney Aaron Wegner. 

Juneau County Man Charged with Child Pornography Crimes

Steven M. Brown, 65, Camp Douglas, Wisconsin, is charged with two counts of receiving a visual depiction of a minor engaging in sexually explicit conduct.  The indictment alleges that on January 5, 2017, Brown received such a depiction in an image sent via Facebook, and on February 23, 2018, Brown downloaded a video containing such a depiction.  The indictment also charges Brown with possessing a hard drive containing visual depictions of child pornography, and that at least one of the depictions involved a minor who had not attained 12 years of age.  The indictment alleges that Brown possessed the hard drive on April 4, 2018. 

Brown previously was charged with one count of receiving child pornography in a federal complaint filed on April 4.  He made his initial appearance in U.S. District Court in Madison that day, and his arraignment is scheduled for April 19.  He has been held in federal custody since his arrest on April 4.

If convicted, Brown faces a mandatory minimum penalty of five years and a maximum penalty of 40 years in federal prison on each charge of receiving child pornography, and a maximum of 20 years on the charge of possession of child pornography.  The charges against him are the result of an investigation by the FBI Child Exploitation Task Force and the Monroe County Sheriff’s Department.  The prosecution of this case is being handled by Assistant U.S. Attorney Elizabeth Altman.

Prison Inmate Charged with Assault

Carl Richardson, 39, an inmate of the Federal Correctional Institution at Oxford, Wisconsin, is charged with assaulting an individual with the intent to commit murder, and with assaulting the individual with a dangerous weapon and with intent to do bodily harm.  The indictment alleges that the assault occurred on November 5, 2017 at FCI-Oxford. 

If convicted, Richardson faces a maximum penalty of 20 years in federal prison for the assault with intent to commit murder, and 10 years for the assault with a dangerous weapon.  The charges against him are the result of an investigation by the Federal Bureau of Investigation and the Federal Bureau of Prisons.  The prosecution of this case is being handled by Assistant U.S. Attorney Darren Halverson.

Marlon P. Bush, 47, formerly the Director of the East St. Louis Public Library, was charged in a six-count Indictment with three counts of Wire Fraud and three counts of Embezzlement from the City of East St. Louis Public Library, A Unit of Government That Received Federal Funds, Don Boyce, United States Attorney for the Southern District of Illinois, announced today. Counts One through Three of the Indictment, Wire Fraud, each carry a maximum penalty of up to 20 years in prison, while Counts Four through Six, Embezzlement, each carry a maximum penalty of up to 10 years in prison. Each of the offenses is punishable by a fine of up to $250,000, with mandatory restitution.

The Indictment charges that from September 2014 through December 2016, Bush took excess salary and charged personal purchases to the East St. Louis Public Library’s credit card that included professional sports tickets, concert tickets, personal apparel, jewelry, firearm accessories, and personal travel expenses. Specific counts of the Indictment charge Bush with using the Library’s credit card to purchase tickets for the Dallas Mavericks and the entertainer Bootsy Collins, as well as throwing knives, a machete, and an axe.

An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.

The investigation was conducted by the Metro-East Public Corruption Task Force, consisting of the Federal Bureau of Investigation, Internal Revenue Service/Criminal Investigations, and the Illinois State Police. Anyone with information concerning public corruption can call the Southern Illinois Public Corruption Task Force Tip Line: 618-589-7353. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.

TRENTON, N.J. – Four women appeared in federal court this week to admit their respective roles in an oxycodone distribution conspiracy in Flemington, New Jersey, and elsewhere, U.S. Attorney Craig Carpenito announced.

Alicia Balaban, 35, of Wellington, Florida; Marie DeJulia, 42, of Lodi, New Jersey; and Michele Call, 63, and Nelida Rios, 55, both of Flemington, were previously charged by complaint. They entered their guilty pleas – to informations charging them each with one count of conspiracy to distribute and possess with intent to distribute oxycodone – before U.S. District Judge Freda Wolfson in Trenton federal court.

According to the documents filed in the case and statements made in Court:

Balaban, is Call’s daughter and DeJulia’s friend. From April 2016 through December 2017, Balaban, Call, and Rios worked together to secure prescriptions for oxycodone, fill them at pharmacies in Flemington, and then distribute the pills to DeJulia from Call’s and Rios’ Flemington residences for resale. The conspirators distributed thousands of 30 mg oxycodone pills.

Each defendant faces a maximum penalty of 20 years in prison and a fine of up to $1 million or twice the gross gain or loss caused by the offense. Sentencing for Rios and Balaban is scheduled for July 20, 2018, and for Call and DeJulia, July 24, 2018.

U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.

Defense counsel:
DeJulia: John Azzarello Esq., Morristown, New Jersey
Balaban: Clifford Lazzaro Esq., Elizabeth, New Jersey
Call: Jason LeBoeuf Esq., Newark
Rios: Michael Pedicini Esq., Chatham, New Jersey

PITTSBURGH, PA. – A former resident of Coraopolis, Pennsylvania, pleaded guilty in federal court to charges of carjacking, armed robbery of a pharmacy and violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.

Joshua Williams, age 37, pleaded guilty to three counts before United States District Judge Arthur J. Schwab.

In connection with the guilty plea, the court was advised that on May 29, 2017, Williams climbed through the open passenger window of a Chevrolet Malibu vehicle and attempted to poke the driver with a knife. The driver of the car was able to jump out of the vehicle and crawl onto the sidewalk as the defendant fled in the vehicle.

Shortly thereafter, Onstar tracked the vehicle to Noblestown Road. When police responded to the area, they learned that the defendant had just robbed a Rite Aid pharmacy. The defendant jumped over the counter, pointed a large serrated knife at the pharmacist, and demanded Oxycodone, Fentanyl and Adderall. Williams fled the pharmacy with a trashcan full of medications with a street value of nearly $200,000. Onstar continued to track the vehicle and the defendant was apprehended minutes later with the prescription pill bottles stolen from the pharmacy, as well as a knife.

The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.

The Drug Enforcement Administration and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.

McALLEN, Texas ‐ The former director of the La Joya Housing Authority and another man have been ordered to federal prison for a bid rigging scheme, announced U.S. Attorney Ryan K. Patrick. Juan Jose Garza, 50, of La Joya, and Mexican national Armando Jimenez, 53, pleaded guilty to wire fraud May 3, 2017.  

Today, U.S. District Judge Ricardo H. Hinojosa ordered Garza to serve 37 months in prison, while Jimenez received an 18-month-prison term. In imposing the sentence, the court ruled Garza abused his position of trust to facilitate the wire fraud scheme, commenting that “the public trusts people in public office to do the right thing.” Judge Hinojosa further noted in regard to Garza “that trust was broken.” Garza will also serve two years of supervised release. Not a U.S. citizen, Jimenez is expected to face deportation proceedings following his sentence.

From 1999 through 2016, Garza was the executive director of the La Joya Housing Authority. From July 2013 through March 2013, Garza and Jimenez engaged in bid rigging for construction contracts with the Alamo and Donna Housing Authorities. They submitted false bids to guarantee Jimenez Construction would be the low bidder and then awarded construction projects. Jimenez then falsely submitted invoices for work he claimed his construction company did, but that had been completed by subcontractors working for Garza.

Garza and Jimenez were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The Department of Housing and Urban Development - Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Kristen Rees prosecuted the case. 

McALLEN, Texas – A 22-year-old woman from Guadalajara, Mexico, has been ordered to federal prison following her conviction of importing methamphetamine into the country, announced U.S. Attorney Ryan K. Patrick. Yezel Eunice Nevarez-Martell pleaded guilty Aug. 30, 2017.

Today, U.S. District Judge Micaela Alvarez ordered Nevarez to serve 168 months in federal prison. Not a U.S. citizen, Nevarez is expected to face deportation proceedings following the sentence. At the hearing, the court took into consideration that the methamphetamine had a 90% purity level which is commonly referred to as “ice.” In handing down the sentence, Judge Alvarez noted that there are many young people that come before the court, sadly, on a regular basis and also expressed concern with the significant amount of such a significant drug which, once distributed, effects people at all levels of life.

At the time of her guilty plea, Nevarez admitted that on April 2, 2017, she drove a vehicle from Mexico and attempted to enter the United States at the Hidalgo port of entry, knowing the vehicle contained a controlled substance. Upon inspection, Customs and Border Protection (CBP) officers discovered methamphetamine hidden in a false compartment within the rear cargo area of the vehicle. Agents seized 23 packages weighing approximately 22 kilograms of methamphetamine.

Nevarez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations and CBP conducted the investigation. Assistant U.S. Attorney Linda Requénez prosecuted the case.

The Office of the United States Attorney for the District of Vermont stated that, on April 18, 2018, Richard Monroe, age 25, pleaded guilty in United States District Court in Rutland, Vermont, to possessing firearms in furtherance of his cocaine trafficking and to discharging a handgun and killing Kevin DeOliveira on January 2, 2015. At the time of his death, DeOliveira was 23 years old and enrolled at the University of Vermont. Specifically, Monroe pleaded to two federal crimes in front of Chief Judge Geoffrey Crawford. He admitted to conspiring with Zachery Hust and others to distribute over 500 grams of cocaine during the second half of 2014. He also pleaded guilty to a firearms charge that he carried, used and possessed firearms during, and in furtherance of, the cocaine conspiracy, and, in particular, that he discharged a handgun on January 2, 2015, resulting in the death of Kevin DeOliveira.

In court, Monroe admitted participating in the cocaine conspiracy. During 2014, Monroe regularly obtained quantities of cocaine from DeOliveira and redistributed part of that cocaine to various customers in the Burlington area. In late 2014, Hust joined the conspiracy. For example, Hust and Monroe planned to obtain a kilogram of cocaine to sell to a marijuana customer of Hust, though that deal never came to fruition. During 2014, the conspiracy involved well over 500 grams of cocaine.

Monroe also admitted carrying, using, and possessing firearms in furtherance of this cocaine conspiracy. In 2014, the defendant possessed several firearms, including two handguns, a Glock and a Browning Buckmark .22. He regularly carried the Glock or displayed it in his residence when distributing cocaine. Monroe also admitted shooting DeOliveira and killing him on January 2, 2015. In late 2014, Monroe had a financial dispute with DeOliveira over several ounces of cocaine that had been damaged. DeOliveira claimed that the defendant owed him several thousand dollars for the cocaine. Monroe disputed this debt. On the morning of January 2, 2015, Monroe approached the door of DeOliveira's residence at 58 Green Street in Burlington. When DeOliveira opened the door of his apartment, the defendant discharged his Browning Buckmark .22 pistol, firing one bullet into DeOliveira’s eye. This shot killed Kevin DeOliveira.

The charges Monroe pleaded guilty to carry a mandatory minimum of 15 years, with a maximum sentence of life. Monroe, however, pleaded guilty pursuant to a binding plea agreement in which the parties agreed to a sentence of 25 years in prison. The court accepted the plea but deferred acceptance of the plea agreement until after the court’s consideration of the presentence investigation by the United States Probation Office. If the court rejects the plea agreement, Monroe will have the option of withdrawing his guilty plea.

The arrest of Monroe was the culmination of a multi-agency investigation that began in early 2015. The collaborative effort was led by the Burlington Police Department, U.S. Marshal Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chittenden County State’s Attorney’s Office also assisted extensively with the investigation of the case, particularly in its early stages.

U.S. Attorney Christina E. Nolan commended the extraordinary investigative work of the Burlington Police Department and the ATF and the contributions of the Chittenden County State’s Attorney’s Office. She stated: “this was a dogged investigation involving local and federal law enforcement and local and federal prosecutors that spanned years and entailed extensive cooperation. I commend the top-notch team effort that resulted, finally, in justice for the victim’s family and closure for them and our community. This kind of senseless violence in connection with the drug trade is abhorrent and we will continue to come together to put a stop to it. Those who would use violence, or carry or discharge firearms, to further their drug business, must understand that law enforcement will unite and work tirelessly to show zero tolerance and achieve justice. You will be priority targets for federal prosecution.”

State’s Attorney Sarah George commented: “Our office is extremely grateful to the many agencies who played a part in the investigation, prosecution, and resolution of this heinous and senseless murder. We are incredibly relieved that both justice and closure have finally come for Mr. DeOliveira and his family.”

“We will investigate this city’s homicides until every lead is exhausted or an arrest is made, and we are reassured by the knowledge that our partners in the US Attorney’s office are just as determined and relentless,” said Brandon del Pozo, Burlington’s Chief of Police. “The city owes a debt of gratitude to this top-notch team of detectives and prosecutors. They have given closure to the family of the victim and made sure justice was served to Mr. Monroe.”

United States Attorney Christina E. Nolan and Assistant United States Attorney Paul J. Van de Graaf are prosecuting the case. Monroe is represented by Attorneys Mark Kaplan and Natasha Sen.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.

COVINGTON, Ky.– On Tuesday, Nathan W. Balser, 31, of Campbell County, Kentucky, was sentenced to nearly 22 years in prison, by United States District Judge David Bunning, for Production of Child Pornography. 

Balser previously admitted that, in January 2017, he took sexually explicit videos of his daughter, who was only 11 years old at the time.  Balser pleaded guilty to the charges in December 2017. 

Under federal law, Balser must serve 85 percent of his prison sentence; and upon release, he will be under the supervision of the United States Probation Office.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Steven L. Igyarto, Resident Agent in Charge, Homeland Security/ICE and Chief Craig Sorrell, Campbell County Police Department, jointly made the announcement.

The Department of Homeland Security Investigation, Immigration and Customs Enforcement and the Campbell County Police Department conducted the investigation.  Former Assistant United States Attorney Robert K. McBride and Assistant United States Attorney Wade T. Napier represented the United States.

St. Thomas, USVI – Tommy Ramirez, 29, of the Dominican Republic and Ramon Clavel, 55, of Haiti, plead guilty today in District Court before District Court Judge Curtis V. Gomez, to possession of cocaine with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced.

According to court documents, on February 12, 2018, Ramirez instructed Clavel to present himself at the Emancipation Gardens post office to claim a package that contained a white powdery substance. The white powdery substance was sent to the Drug Enforcement Administration (DEA) laboratory and testing confirmed to be one kilogram of cocaine, a controlled substance.

Ramirez and Clavel face a minimum sentence of five years and a fine of $250,000.00. Sentencing is scheduled for August 23, 2018.

The Drug Enforcement Administration (DEA), the United States Postal Inspection Services (USPIS), and the Department of Homeland Security Investigations U.S. Customs and Border Protection (CBP), and the Federal Bureau of Investigations (FBI) investigated the case. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.

The Office of the United States Attorney for the District of Vermont stated today that Leon Russell, 36, of Castleton was sentenced to five years imprisonment by Chief Judge Geoffrey Crawford in U.S. District Court in Rutland. Judge Crawford also sentenced Russell to three years supervised release, which is a period of supervision by the U.S. Probation Office, which will begin upon Russell’s release from prison.

According to court records, Russell previously pled guilty to possession of a firearm by a felon and distributing heroin. The firearm charge stems from Russell’s theft of a .380 caliber Bersa semiautomatic pistol from a vehicle parked in a Fair Haven driveway on December 6, 2016. Later that day, Russell traded that firearm in exchange for four small bags of heroin from another heroin dealer in the Walmart parking lot in Rutland. The firearm was subsequently recovered. Russell was disqualified from possessing a firearm under federal law because he was previously convicted of a 2009 burglary of American Legion Post #50 in Castleton, Vermont. Possession of a firearm by a felon is subject to a maximum sentence of ten years. Federal law also makes it a crime to knowingly possess a stolen firearm, regardless of whether a person has a prior felony conviction. This offense is also subject to a maximum ten years imprisonment.

The heroin offense to which Russell also pled guilty, concerned Russell’s sale of a bundle of heroin (ten small bags) in Castleton on May 27, 2015. The maximum sentence for this offense is twenty years.

In July 2017, with the support of the U.S. Attorney’s Office, the Court released Russell from jail to allow him to participate in residential drug rehabilitation and then the Federal Drug Court program in Rutland. If Russell had successfully completed the Drug Court program he would have received no further jail time; that is, a time-served sentence. In November 2017, however, Judge Crawford revoked Russell’s conditions of release based on the government’s allegations that Russell had resumed distributing heroin and crack cocaine and that he had continued to use drugs while in Drug Court.

At sentencing, the government argued that instead of proving through Drug Court that he could be trusted to be a law-abiding citizen, Russell proved just the opposite; that is, he remained a danger to the community. In sentencing Russell to 60 months imprisonment, Judge Crawford emphasized the potential dangerous consequences of trading guns for drugs.

U.S. Attorney Christina E. Nolan commended the collaboration of federal and local law enforcement in the investigation and prosecution of Russell, citing specifically the substantial contributions of the Fair Haven and Rutland Police Departments and the DEA and ATF. She added, “trading firearms to drug dealers is inherently dangerous and creates an unacceptable public safety risk. The U.S. Attorney’s Office will work closely with our law enforcement partners to prioritize identification and prosecution of those who mix unlawful firearms activity with the drug trade. Further, federal prosecutors will pursue appropriate sanction for those who brazenly violate Court orders, as occurred in this case.”

This prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: http://www.projectsafeneighborhoods.gov/

This case was investigated jointly by the Vermont State Police Drug Task Force, the Fair Haven Police Department, the Rutland Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This matter was prosecuted by Assistant U.S. Attorney Joe Perella. Russell is represented by Richard Bothfeld, Esq. of Burlington.

John H. Durham, United States Attorney for the District of Connecticut, announced that ALEA CRUZ, 20, formerly of Waterbury, was sentenced today by U.S. Magistrate Judge Sarah A. L. Merriam in New Haven to six months of imprisonment, followed by one year of supervised release, for violating the conditions of her probation.

According to court documents and statements made in court, in July 2016, as part of a DEA New Haven Task Force investigation that followed an overdose death, law enforcement officers made two controlled purchases of heroin from CRUZ’s boyfriend, Teddy Stuart Lopez, Jr., in Waterbury.  On July 5, 2016, at Lopez’s direction, CRUZ delivered 20 bags of heroin to an individual for $100.  CRUZ and Lopez were arrested on July 19, 2016.

On December 1, 2016, CRUZ pleaded guilty to one count of possession of a controlled substance, a misdemeanor offense.  On February 27, 2017, Judge Merriam sentenced CRUZ to three years of probation and ordered her to pay a $1,000 fine at a rate of $40 per month.

Lopez pleaded guilty to a related heroin distribution offense and was sentenced to 15 months of imprisonment.

While on probation and under the supervision of U.S. Probation officers in Virginia and, most recently, Rhode Island, where she was residing, CRUZ tested positive for marijuana nine times and, on one occasion, provided a diluted urine specimen.  She also failed to report to probation officers and failed to submit to drug screenings on multiple occasions, and failed to participate in substance abuse treatment as ordered.  In addition, CRUZ violated her probation by associating with Lopez, a convicted felon, through email and the telephone.  She also failed to make any installment payments on her court-ordered fine even though she had the ability to do so, and had made more than 50 payments totaling more than $1,800 to Lopez’s prison account.

At the conclusion of today’s court proceeding, CRUZ was remanded to the custody of the U.S. Marshals Service to begin serving her sentence.

This case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

JOHNSTOWN, Pa. – A resident of Johnstown, Pa. pleaded guilty in federal court to charges of filing false income tax returns, United States Attorney Scott W. Brady announced today.

James E. Book, Sr., pleaded guilty to four counts before United States District Judge Kim R. Gibson.

In connection with the guilty plea, the court was advised that Book knowingly filed false income tax returns for 2010, 2011, 2012, and 2013, in which he understated his income and overstated his expenses, for a total tax loss of $239,940.

Judge Gibson scheduled sentencing for August 9, 2018, at 1 p.m. The law provides for a maximum total sentence of 12 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.

The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Book.

Charleston, South Carolina ---- United States Attorney Beth Drake stated today that Delano McPherson, 29, from Charleston, South Carolina, was sentenced in federal court by United States District Court Judge Richard M. Gergel, who imposed the maximum possible sentence under federal law. McPherson was sentenced to 10 years in the federal penitentiary.  He was convicted of being a felon in possession of a firearm after pleading guilty on October 24, 2017. 

McPherson’s case illustrated the effectiveness of the surveillance cameras installed in the city’s high-crime and densely populated areas of Charleston, South Carolina.  These have been very beneficial in not only preventing crime but also helping to solve crimes after they happen.

Evidence presented during the sentencing hearing showed that on September 7, 2015, the CPD Camera Room Operator called dispatch to advise that he had seen an individual shooting a gun from the location of the intersection of America Street and South Street, about three blocks from East Bay Street. This happened around 11:15pm in the late evening.  From witnessing the incident on the surveillance camera, the operator was able to provide a description of the individual.  He also was able to fully describe the car (a silver Nissan Altima) and its license tag.  He informed dispatch that the shooter left the scene in the vehicle as a passenger, fleeing towards East Bay Street on South Street.  City of Charleston Police Department Officers responded immediately and spotted the car.  They made a felony stop at a gas station, two blocks from the scene of the shooting.  The driver was found to be Desmond Campbell.  In the rear passenger’s seat was the driver’s brother, Delano McPherson.  An officer looked in the back seat area and saw the grip and hammer of a revolver beneath the front passenger seat.   This was where McPherson had been sitting.  The officer retrieved the gun, which was a silver Smith and Wesson .357 magnum caliber revolver.  It had six spent shell casings.

The car was further searched.  The glove box held a Glock magazine, loaded, with 16 rounds of 9mm ammunition.  The car itself was damaged.  The officer observed a gouge in the roof of the vehicle, which was visible from the outside.

The video surveillance tapes were reviewed and showed the full sequence of events.  McPherson, the aggressor, got into a confrontation moments before the shooting, on America Street.

He walked away, and down South Street. 

About fifteen minutes later, he returned, carrying what appeared to be a silver revolver, in his right hand. 

He then turned away and walked down South Street.  An Altima pulled up and the driver, his brother, got out and walked away, down South Street.

The operator noticed that after the individual shot the gun, he walked west on South Street, while leaving the car running and the lights on. 

McPherson stood on the corner of America and South Street with the pistol in his hand.

After looking around, and using the Altima for cover, he walked up to the car and began shooting. 

He started to leave, again down South Street, and there was return fire.

He hid the gun on top of the wheel well of an adjunct car, then retrieved it and got into the passenger’s seat of the Altima.  His brother also returned and the two drove off. 

Police immediately responding to the 911 calls turned from America Street onto South Street.

The 911 calls were from neighborhood residents.  Rounds from the shooting penetrated several homes.

During the sentencing hearing, McPherson testified that he was trying to defend himself.  While being cross-examined by Assistant United States Attorney, Sean Kittrell, he admitted that he shot at a person during the course of the incident.  He also admitted to having sold drugs at the same corner that McPherson shot from, a crime of which he had previously been convicted.  In this case, Judge Gergel found that McPherson had used the firearm in an attempted murder and imposed the maximum sentence.

United States Attorney Drake recognized the work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, which investigated the case, “The U.S. Attorney’s Office and ATF are working with our state and local law enforcement partners to identify violent offenders who are tearing our communities apart. One of the quickest and most effective ways to reduce street violence is to take violent repeat felons who use guns off of the street using the federal law that prohibits a convicted felon from possessing a firearm. It’s all about protecting our communities.”

The resident agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, praised the fast work of the City of Charleston Police Department and said that, “This investigation is another example of the outstanding partnership between ATF, the Charleston Police Department and the U.S. Attorney’s Office working collaboratively to target violent crime in the City of Charleston.”     

McPherson was convicted of violating the felon in possession of a firearm statute.  This is Title 18, United States Code, Section 922(g)(1).    

McPherson is prohibited under federal law from possessing firearms based upon his prior separate state conviction for distribution of crack cocaine (3 counts), possession of crack cocaine (two convictions), a federal conviction

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the City of Charleston Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Sean Kittrell and Special Assistant Solicitor Stephanie Linder, who is an Assistant Solicitor for the 9th Judicial Circuit, prosecuted the case for the government. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

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NEWARK, N.J. – The former executive director of a Newark-based childcare and community program and a partner in a political fundraising and consulting company was sentenced today to 38 months in prison for wire fraud and tax evasion, U.S. Attorney Craig Carpenito announced.  

Kiburi D. Tucker, 43, of Newark, previously pleaded guilty before Chief U.S. District Judge Jose L. Linares to an information charging him with one count of wire fraud and four counts of tax evasion. Judge Linares imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

As the executive director of The Centre Inc., Tucker embezzled its funds through ATM, debit card and bank withdrawal transactions to fund personal expenditures, including gambling, travel, and furnishing his home. Tucker defrauded The Centre of $332,116 from 2012 through 2015.  

 In addition, Tucker, who was also receiving an annual salary from his employment at the Passaic Valley Sewerage Commission, filed false personal income tax returns in which he intentionally under-reported both the proceeds that he embezzled from The Centre and income from his partnership in Elite Strategies, a political fundraising and consulting company. Tucker admitted that he was responsible for underreporting $177,040 in income from these sources for the 2015 tax year, resulting in a tax loss of $56,509.

In addition to the prison term, Judge Linares sentenced Tucker to three years of supervised release and ordered him to pay restitution of $133,624 to the IRS and forfeit $334,116.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation.  

The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the Special Prosecutions Division in Newark. 

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Defense counsel: Timothy M. Donohue Esq., West Orange, New Jersey and Alfred C. Decotis Esq., Teaneck, New Jersey

ALBUQUERQUE – Vinson Six, 39, an enrolled member of the Navajo Nation who resides in Smith Lake, N.M., pled guilty today in federal court to assault charges.

Six was arrested on Dec. 13, 2017, on a three-count indictment charging him with assault with a dangerous weapon, a knife, assault resulting in serious bodily injury, and robbery.  According to the indictment, Six committed the crimes on April 14, 2016, on the Navajo Indian Reservation in McKinley County, N.M.

During today’s proceedings, Six pled guilty to assault with a dangerous weapon and assault resulting in serious bodily injury.  In entering the guilty plea, Six admitted that on April 14, 2016, he forced himself into the victim’s home, and threatened and cut the victim with a knife.  Six acknowledged that the victim suffered lacerations to his head and arm, which required medical attention, as the result of the assault.

At sentencing, Six faces a maximum penalty of ten years in federal prison.  He remains in custody pending a sentencing hearing, which has yet to be scheduled.

This case was investigated by the Gallup office of the FBI and the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Elisa Dimas.

HONOLULU – Garrett Okubo, of Honolulu, Hawaii, pled guilty today in federal court to four counts of health care fraud in violation of Title 18, United States Code, Section 1347.

According to court documents and information presented in court, Okubo was the owner and operator of a physical therapy business in Honolulu. From January 2011 through October 2017, Okubo submitted false claims for payment for physical therapy services to TRICARE, Medicare, Medicaid, and HMSA. Okubo submitted claims to these health care benefit programs using his unique provider number, thereby falsely stating that Okubo himself had personally provided the physical therapy services to his patients, when in reality the services were provided by Okubo’s unlicensed staff members, including at times when Okubo was travelling on the U.S. mainland or in a foreign country. The government alleges that Okubo billed approximately $5.5 million of false claims for services provided by his unlicensed staff members, of which approximately $3.7 million was actually paid. Okubo reserved the right to challenge the loss amount in his plea agreement.

Okubo’s sentencing is scheduled for August 6, 2018 before U.S. District Judge J. Michael Seabright. For each count, Okubo faces up to 10 years in prison, a fine of up to $250,000, and a period of supervised release of up to three years. Okubo agreed to pay restitution, and agreed to forfeit the proceeds of his unlawful activity, in amounts to be determined by the Court.

The case was jointly investigated by the Defense Criminal Investigative Service; the Federal Bureau of Investigation; the Department of Health and Human Services, Office of Inspector General; and the State of Hawaii, Department of the Attorney General, Medicaid Fraud Control Unit; and was prosecuted by Assistant United States Attorney Marc A. Wallenstein.

SACRAMENTO, Calif. — Gregory Jerome Brown, 28, of Bountiful, Utah, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years and three months in federal prison, to be followed by three years of supervised release, for robbing three banks, U.S. Attorney McGregor W. Scott announced.

According to court documents, Brown robbed three banks in three different states. Brown wrote his demands on index cards, and in two instances, Nevada and Utah, he threatened tellers in demand notes with a gun. After the robberies, Brown rode away on his motorcycle. After the Utah bank robbery, Brown fled south and was apprehended in Phoenix, Arizona. At his guilty plea, Brown admitted that he robbed the following banks:

• On October 13, 2017, he robbed the Wells Fargo Bank at 338 Elm Avenue, Auburn, California;
• On October 14, 2017, he robbed the Wells Fargo Bank at 2895 Northtowne Lane, Reno, Nevada;
• On November 8, 2017, he robbed the America First Credit Union at 2928 East Mall Drive, Saint George, Utah.

This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Auburn Police Department, the Reno Police Department, the Saint George Police Department, and the Pleasant Grove Police Department. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.

PENSACOLA, FLORIDA– Five defendants were sentenced to federal prison this week after having pled guilty to conspiracy to distribute marijuana and conspiracy to commit money laundering.  The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.

Yesterday, the following defendants were sentenced on both charges:

• Charles Zachariah Sindylek, 32, of Pensacola, 90 months in prison and
• David DelGiacco, 56, of Lake Forest, California, 30 days in custody of the Bureau of Prisons.

Today, the following defendants were sentenced on both charges:

• Brandon Craig Remeyer, 35, of Trabuco Canyon, California, 72 months in prison and
• Andrew Paul Marcelonis, 32, of Pensacola, 18 months in prison.

Also today, Steven Ryan Michael Sholly, 31, of Milton, was sentenced to 59 months in prison on conspiracy to distribute marijuana.

Co-defendants Sanford Eugene Johnson III, William Brett Brownell, and his father William Ezra Brownell had previously pled guilty and were sentenced last November.

Between 2014 and 2017, the defendants conspired to distribute more than 100 kilograms of marijuana in the Northern District of Florida.  Johnson, William Brett Brownell, Sholly, and others in the Pensacola area ordered the marijuana from Sindylek and Remeyer, who shipped packages of marijuana from California to Florida with the assistance of DelGiacco.  Johnson, William Brett Brownell, and Sholly then sold the marijuana in Florida with the assistance of Marcelonis, William Ezra Brownell, and others.  The cash proceeds of the marijuana distribution were laundered through bank accounts, and later mailed to addresses in California.  More than $3.5 million in cash proceeds from the sale of marijuana was laundered during the time frame of the conspiracy.

This case resulted from an investigation by the Drug Enforcement Administration, the Internal Revenue Service–Criminal Investigation, the Pensacola Police Department, the Mobile Police Department, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Okaloosa County Sheriff’s Office, the Gulf Breeze Police Department, and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) program.  Assistant United States Attorney Alicia H. Forbes prosecuted the case.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.