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Upstate Drug Dealer Sentenced to 35 Years in Federal Prison After Offering Cellmate $10,000 to Kill Prosecutor and Witness

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Spartanburg, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Detric McGowan, aka “Fat,” 47, of Piedmont, has been sentenced to 35 years in federal prison after pleading guilty to participating in a drug conspiracy involving cocaine, heroin, fentanyl, and tramadol; possessing a kilogram or more of heroin with the intent to distribute; conspiring to launder money; obstruction of justice/witness tampering; and obstruction of justice/retaliation.

Evidence presented at the change of plea hearing showed that beginning as early as 2016, law enforcement in Greenwood County began to see a rise in the number of opioid-abuse related cases, drug overdose deaths, and overdose non-fatalities attributed particularly to heroin and fentanyl toxicity.  Commonly found at the opioid overdose incidents and routinely seized by local law enforcement were counterfeit 30 milligram-size blue prescription pain pills laced with heroin and/or fentanyl and scored with a “V” on one side and “4812” on the other side.

Based on human intelligence, advanced electronic surveillance, the execution of search warrants, and other investigative techniques, law enforcement determined that McGowan was a member of a drug trafficking organization operating in the Upstate of South Carolina, primarily in Laurens and Greenwood Counties.  The organization was responsible for the distribution of in excess of $1 million dollars’ worth of heroin, cocaine, and/or fentanyl in the Upstate and elsewhere.  Police seized in excess of 20 kilograms of heroin and approximately $1 million during the investigation.  McGowan was indicted along with several co-conspirators in February 2019 and taken into custody.

In July 2019, McGowan began to discuss with a person who was incarcerated with him having his prosecutor and at least one witness killed. This person alerted law enforcement to the threat and an immediate investigation began. The evidence showed McGowan had become frustrated with his legal position and desired to have his prosecutor and a witness killed. McGowan was recorded agreeing to pay the person $10,000 to kill the prosecutor and witness and providing information about how to find the targets. He also provided a telephone number and wrote down the name of the witness, so that upon release the cooperator could carry out the plan. McGowan confessed to the FBI of the plot he had put in motion.

United States District Court Judge Donald C. Coggins, Jr., of Spartanburg, sentenced McGowan to 420 months in federal prison, to be followed by 10 years of court-ordered supervision.  There is no parole in the federal system.

The drug case was investigated by agents of the Drug Enforcement Administration (DEA) and the Internal Revenue Service – Criminal Investigations.  The threat was investigated by the Federal Bureau of Investigation, the United States Marshals Service, and the 7th Circuit Solicitor’s Office.  Assistant United States Attorneys Jim May, Jason Peavy, Sloan Ellis, and Katie Stoughton prosecuted the case.

Area man gets 35 years for sex trafficking adult women by force

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HOUSTON – A 29-year-old former Katy resident has been ordered to prison for conspiring to compel three adult women to engage in sex trafficking by means of force and violence in Houston and other locations across the country, announced U.S. Attorney Ryan K. Patrick.

Marquis Holmes aka Goldie pleaded guilty June 13, 2019, to one count of conspiracy to engage in sex trafficking by means of force, fraud and coercion; two counts of transportation to engage in prostitution; and two counts of enticing and coercing another to travel in interstate commerce for prostitution.

Today, U.S. District Judge Sim Lake sentenced Holmes to 420 months for the conspiracy as well as 120 months and 240 months for the transportation and enticement convictions, respectively. The sentences will all run concurrently for a total 420-month-term of imprisonment. The court also heard from one of Holmes’ victims who described how he forced her to earn $1500 per day or suffer severe consequences. She described how Holmes physically assaulted her, which included kicking and whipping her repeatedly with a thick belt in order to exert his control. She said Holmes was amused during moments when he would physically assault her. The victim also detailed the paranoia, fear and depression she suffered for years after leaving Holmes.

In handing down the sentence, the court noted the heinous and violent nature of Holmes’ crimes. He will serve 20 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Holmes will also be ordered to register as a sex offender.

From June 2015 until his arrest in March 2018, Holmes scoured social media websites to recruit women, often under false pretenses, to work as prostitutes for him. Under threat of violence and actual violence, Holmes prostituted two of these women in Houston and Austin; New Orleans, Louisiana; Memphis, Tennessee; Pittsburgh, Pennsylvania; Mississippi; Alabama; South Carolina and other locations across the country. Holmes coerced the women to pose for pictures used in online advertisements for sex and to engage in commercial sex acts for money. Holmes collected all the money the women earned.

On March 30, 2018, authorities arrested Holmes, at which time they rescued a third victim whom he had kidnapped in his residence along with her infant child. While raping her daily, Holmes forced her to solicit commercial sex dates along the 1.3 mile stretch of Bissonnet Street, commonly referred to as “The Track,” while he kept close tabs on her and her infant child. If she did not meet the monetary quota Holmes had set, he beat her and deprived her of food. 

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

The Human Trafficking Rescue Alliance (HTRA) conducted the investigation.

HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Coast Guard and sheriff’s offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.

Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.

Assistant U.S. Attorneys Sebastian Edwards and Carrie Wirsing prosecuted this case.

Raleigh Man Sentenced to 10 Years Imprisonment on Child Pornography Charges

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RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III, sentenced DUSTIN LEE BISHOP, 32, of Raleigh, NC to 120 months’ imprisonment, followed by an eight-year term of supervised release.  BISHOP was also ordered to pay more than $19,000 in restitution to known child pornography victims identified through the investigation.  BISHOP pled guilty pursuant to a plea agreement on November 12, 2019 to one count of receipt of child pornography.

In September 2017, investigators with the National Center for Missing and Exploited Children (NCMEC) received information from Google regarding a user account that had uploaded multiple files of child pornography.  The cyber tip was forwarded to the North Carolina Internet Crimes Against Children (NCICAC) task force and investigated by the Federal Bureau of Investigation (FBI) in Raleigh, North Carolina, and the Raleigh Police Department.

Investigators confirmed that that the account identified in the cyber tip belonged to BISHOP and later obtained a search warrant for BISHOP’s residence that was executed on February 20, 2018.  Investigators with the FBI executed the warrant and seized 19 electronic devices and 6 DVDs from BISHOP.  A forensic review was conducted and revealed over 9,300 images and more than 840 videos containing child pornography.  BISHOP agreed to speak with investigators at the time of the search and admitted to receiving, trading, and possessing child pornography.  

This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.  For more information about this important national initiative, go to www.projectsafechildhood.gov.

The Federal Bureau of Investigation (FBI) in Raleigh, North Carolina and the Raleigh Police Department conducted the investigation of this case.  Assistant United States Attorney Bryan M. Stephany represented the government.

Duo Convicted of Conspiracy to Distribute Crack Cocaine After Jury Trial

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HAMMOND- Antonio Walton, age 43, and Charles Gould, age 36, both of Gary, Indiana, were convicted, late last night, after a jury trial in the Hammond District Court of conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base, commonly known as crack cocaine, announced United States Attorney Thomas L. Kirsch II.

U.S. District Court Judge Philip P. Simon presided over this 6-day jury trial.

According to documents in this case, from July 2015 through November 2016, Walton and Gould conspired with other individuals in Gary, Indiana, to distribute and possess with intent to distribute crack cocaine.   As part of the conspiracy, cocaine was cooked into crack cocaine, packaged for sale, and distributed by members of the conspiracy in Gary’s Glen Park neighborhood, with armed individuals serving as security for the twenty-four hour a day drug operation.  During the investigation, law enforcement executed search warrants at five separate locations and recovered approximately 300 grams of crack cocaine packaged for sale, packaging materials, money, paraphernalia used to cook cocaine into crack cocaine, and a 33-page drug ledger.  It is estimated that gross drug sales ran into the hundreds of thousands of dollars.  Walton has prior felony convictions for dealing in cocaine, distribution of marijuana, and possession of ammunition as a felon.   

To date, seventeen other charged members of the conspiracy have been convicted of drug-related offenses in this case.  

This case was investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team with the assistance of the Gary and Hobart Police Departments.  This case was prosecuted by Assistant United States Attorneys Thomas R. Mahoney and Alexandra McTague.

Washington Man Sentenced to 30 Years in Prison for Engaging in Child Exploitation Enterprise

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PHILADELPHIA – United States Attorney William M. McSwain announced that Sharif El-Battouty, 45, of Puyallup, WA, was sentenced by United States District Court Judge Harvey Bartle III to 30 years’ imprisonment and a lifetime of supervised release for engaging in a child exploitation enterprise and conspiracy to advertise child pornography.

El-Battouty – using the online alias “Fritos” – posted videos and images of child pornography in various text channels on the online-sharing platform Discord. Discord is a public communications service that permits users to create “servers,” or collections of chat rooms. These servers are capable of hosting numerous Discord users who communicate with each other through text chat messages visible to all other users present in that room, post video and image files for other users to download, and send links to material stored elsewhere on the Internet for retrieval by those users.

El-Battouty also actively produced child pornography by communicating directly with scores of minor children over the Internet using manipulation and deception to entice them into transmitting sexually explicit video and images of themselves, which the defendant and his co-conspirators would then record. Two of the Discord servers utilized in this conspiracy, titled “Camgirls” and “Thot Counselors,” facilitated the acquisition and dissemination of child pornography over various video-streaming platforms including Omegle, live.me, Periscope, and Skype.

“Child exploitation offenses are some of the most appalling crimes that we see in our society,” said U.S. Attorney McSwain. “Through his heinous scheme, El-Battouty perpetually victimized children by using Discord to download and share images of their abuse with others. Our community is much safer with the defendant behind bars for decades to come.”

“Sharif El-Battouty manipulated underage girls into sharing explicit images of themselves,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He then passed that child pornography to other online predators, furthering his victims’ sexual exploitation. The FBI is gratified to bring him to justice and to know he’ll be behind bars for some time, where he can’t continue to perpetrate such abhorrent acts against innocent children.”

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kevin Jayne and Department of Justice Child Exploitation and Obscenity Section Attorneys Lauren Britsch and Kaylynn Shoop.

Gang Member Charged with Selling Fentanyl and Crack in East Hartford

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John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE RESTREPO, also known as “Crack Baby,” 38, of East Hartford, was arrested today on a criminal complaint charging him with distributing fentanyl and crack cocaine.

As alleged in court documents, the FBI’s Northern Connecticut Violent Crimes and Gang Task Force has been investigating drug trafficking and related criminal acts being committed by members and associates of the Los Solidos and Latin Kings street gangs.  Restrepo is a member of Los Solidos.  The investigation has revealed that Restrepo and other gang members are distributing fentanyl and crack cocaine in Hartford and surrounding communities.  Earlier this month, law enforcement learned that Restrepo was feuding with other members of Los Solidos and was selling narcotics in East Hartford.  In the past week, investigators made three controlled purchases of crack and one controlled purchase of fentanyl from Restrepo in East Hartford.

At the time of his arrest, it is alleged that Restrepo possessed approximately 200 bags of suspected fentanyl.

Restrepo is charged with possession with intent to distribute, and distribution of, fentanyl and cocaine base (“crack cocaine”), an offense that carries a maximum term of imprisonment of 20 years.

Restrepo appeared today before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was ordered detained.

U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt.  Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The FBI’s Northern Connecticut Violent Crimes and Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.

Career Offender Sentenced To Over Eighteen Years In Federal Prison For Bank Robbery

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Tampa, Florida – U.S. District Judge James S. Moody has sentenced Derrick Coleman (41, New Port Richey) to 18 years and 4 months in federal prison for bank robbery. As part of his sentence, the court also entered a money judgment in the amount of $5,000, the proceeds of the bank robbery.

A jury found Coleman guilty on November 19, 2019.

Evidence presented at trial showed that, on June 30, 2018, Coleman visited a Chase Bank in Tarpon Springs and spoke to a teller about opening a new account. As the teller explained the process, Coleman placed a bag on the counter, told the teller that he had a gun, and demanded money from the teller. The teller complied and Coleman fled the bank with $5,000.

The Tarpon Springs Chase bank robbery was Coleman’s thirteenth bank robbery. From February 2007 through December 2007, Coleman engaged in a bank robbery spree, where he robbed or attempted to rob twelve banks in Illinois.

This case was investigated by the Federal Bureau of Investigation and the Tarpon Springs Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

New York Man On Parole Sentenced To Prison For Possessing Credit Card Manufacturing Equipment

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Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Changa Bush (41, New York) to 15 months in federal prison for possession of credit card manufacturing equipment. The court ordered that Bush serve his federal prison sentence prior to extradition to New York for a parole violation. Bush is currently on parole out of New York State for assault causing serious physical injury and served 10 years in state prison before being paroled. He remains detained following his arrest on September 6, 2019. 

According to court records, on April 12, 2019, a Flagler County Sheriff’s Office (FCSO) deputy began following a stolen vehicle being driven by Bush, who eventually pulled the car into a gas station and parked, where FCSO deputies made contact with him. Bush refused to identify himself or provide any form of identification. Subsequent to his arrest, law enforcement located the names of various individuals, and counterfeit drivers licenses, matching those on the credit cards in Bush’s possession. A fingerprint check determined that Bush’s identity and that he was wanted out of New York on a parole violation. A search of Bush’s vehicle located a magnetic stripe card writer and reader, two laptops, three thumb drives, a long range wireless adapter, and nine cell phones. A forensic examination of the items seized from the stolen vehicle revealed 37 credit card account numbers, software used to encode and decode the magnetic stripe of a credit card, and evidence of the installation of printers designed for printing identification cards.

This case was investigated by the United States Secret Service (Jacksonville Field Office) and the Flagler County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.

Fort Belknap Agency man sentenced for domestic abuse

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GREAT FALLS—A Fort Belknap Agency man who admitted to being an habitual domestic abuse offender after beating his partner was sentenced on Wednesday to three years in prison and two years of supervised release, U.S. Attorney Kurt Alme said.

Zachary Shawn Kendall, 27, pleaded guilty in November to domestic abuse by habitual offender.

U.S. District Judge Brian M. Morris presided.

The prosecution said in court documents filed in the case that Kendall assaulted his intimate and dating partner in March 2019 on the Fort Belknap Indian Reservation. Kendall had a prior domestic violence conviction involving the same victim from an assault in January 2019 and a previous domestic violence conviction involving a different victim in 2012.

On March 31, 2019, tribal officers were dispatched to the couple’s residence, where Kendall was fighting with another man, whom he accused of having a relationship with the victim. Kendall also struck the victim multiple times in the face and body with his fists.

Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Fort Belknap Law Enforcement Services.

City Of Margate Police Officer Charged With Soliciting A Minor For Visual Depictions Of Sexually Explicit Conduct

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Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the arrest and charging by criminal complaint of Andrew Christian Hammock (46, Boca Raton) with soliciting visual depictions of a minor engaged in sexually explicit conduct. If convicted, Hammock faces a mandatory minimum penalty of 15 years, and up to, 30 years in federal prison and a potential life term of supervised release.

According to the complaint, Hammock was employed by the Margate Police Department as a police officer. From February 14 through March 17, 2020, Hammock engaged in chats using a social media application with whom he believed to be a 14-year-old female child. Hammock solicited the child to produce and send him child pornography on multiple occasions and indicated his desire to engage in sexual conduct with the “child,” who was actually an undercover FBI agent. Hammock was arrested at the City of Margate Police Department on March 17, 2020.

This case was investigated by the Federal Bureau of Investigation (Jacksonville Office), with assistance from the Margate Police Department. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.

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

Ex-Stockbrokers Convicted of Conspiring with Long Island Boiler Rooms to Dump Stock on Unsuspecting Investors

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Defendants Orchestrated Stock Manipulation Scheme That Cost Elderly Victims Millions

Following a six-week trial, a federal jury in Central Islip, New York returned a guilty verdict today on all counts against former registered stock brokers Jeffrey Chartier and Lawrence Isen for their roles in a conspiracy to manipulate and fraudulently promote shares of publicly traded companies Hydrocarb Energy Corp. (HECC), CES Synergies, Inc. (CESX), National Waste Management Holdings, Inc. (NWMH) and Intelligent Content Enterprises, Inc. (ICEIF).  Specifically, the defendants were convicted of money laundering conspiracy, wire fraud conspiracy, securities fraud conspiracy, securities fraud and money laundering.  Chartier was additionally convicted of attempted obstruction of an official proceeding based upon lies he told to the Federal Bureau of Investigation (FBI) after his arrest in this case. 

When sentenced by United States District Judge Joanna Seybert, the defendants each face a maximum sentence of more than 20 years’ imprisonment.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.

“Chartier, Isen and their co-conspirators lied to investors, including elderly victims, but the jurors here saw the truth – that these defendants were brazenly stealing money through fraudulent investment schemes,” stated United States Attorney Donoghue.  Mr. Donoghue thanked the FBI for leading the investigation, and expressed his appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.

From 2013 to 2017, Chartier, Isen and two boiler rooms located in Plainview and Melville, New York – known as, among other names, Elite Stock Research and Power Traders Press – artificially inflated the price and trading volume of the four stocks.  They did so through a cold-calling campaign that used lies and high-pressure sales tactics to lure victims, many of whom were elderly, into purchasing stock.  The conspiracy’s market manipulation fraudulently inflated the stock price of the four stocks by more than $147 million.  

Chartier, who became a major shareholder in CESX and NWMH after persuading those companies to retain him to help take them public, used the boiler rooms to dump nearly $2 million worth of those companies’ shares on unsuspecting victims.  He also sold stock to individuals in private transactions without telling them that the stock had been manipulated to trade at an artificially high price and volume.  Using some of the proceeds from his fraudulent scheme, he purchased a $350,000 luxury RV equipped with a flat screen television and a fireplace, which he used as a traveling office.

After Chartier was arrested in July 2017, and after waiving his Miranda rights, he lied to FBI Special Agents about his and others’ involvement in the scheme, including that he sold NWMH shares only via purchase agreements.

Isen, who was barred from acting as a broker by FINRA in 1996 and convicted of wire fraud conspiracy in the Southern District of New York in 2000, orchestrated the manipulation of stock belonging to, among others, major HECC shareholder Michael Watts and major ICEIF shareholders located in India.  Watts was previously convicted in October 2019 for his role in the stock manipulation scheme following a month-long jury trial and is awaiting sentencing.

Chartier and Isen are the 15th and 16th defendants convicted in this case.  Four defendants have been sentenced for their roles in the scheme:  Ronald Hardy was sentenced to 10 years’ imprisonment; Dennis Verderosa was sentenced to six years’ imprisonment; McArthur Jean was sentenced to four years’ imprisonment; and Emin Cohen was sentenced to two years’ imprisonment.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution.  Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Forfeiture Section is handling the forfeiture matters.

The Defendants:

JEFFREY CHARTIER
Age: 56
Los Angeles, California

LAWRENCE ISEN
Age: 66
San Diego, California

Defendants Who Were Previously Convicted:

RONALD HARDY
Age:  44
Port Jefferson, New York

MCARTHUR JEAN (also known as “John McArthur”)
Age:  37
Dix Hills, New York

STEPHANIE LEE
Age: 48
St. Petersburg, Florida

ERIK MATZ
Age:  46
Mt. Sinai, New York

BRIAN HEEPKE (also known as “Brian Targis”)
Age:  39
Farmingdale, New York

DENNIS VERDEROSA
Age:  79
Coram, New York

EMIN L. COHEN (also known as “Ian Grant”)
Age:  36
Coram, New York

PAUL EWER
Age:  39
Massapequa, New York

ASHLEY ANTOS
Age:  28
Central Islip, New York

SERGIO RAMIREZ
Age:  46
East Meadow, New York

ROBERT GILBERT
Age:  53
Cold Spring Harbor, New York

ANTHONY VASSALLO
Age:  56
Farmingdale, New York

MICHAEL WATTS
Age:  63
Sugarland, Texas

Docket No. 17-CR-372 (S-3) (JS)

Fort Belknap Agency man sentenced for domestic abuse

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GREAT FALLS—A Fort Belknap Agency man who admitted to being an habitual domestic abuse offender after beating his partner was sentenced on Wednesday to three years in prison and two years of supervised release, U.S. Attorney Kurt Alme said.

Zachary Shawn Kendall, 27, pleaded guilty in November to domestic abuse by habitual offender.

U.S. District Judge Brian M. Morris presided.

The prosecution said in court documents filed in the case that Kendall assaulted his intimate and dating partner in March 2019 on the Fort Belknap Indian Reservation. Kendall had a prior domestic violence conviction involving the same victim from an assault in January 2019 and a previous domestic violence conviction involving a different victim in 2012.

On March 31, 2019, tribal officers were dispatched to the couple’s residence, where Kendall was fighting with another man, whom he accused of having a relationship with the victim. Kendall also struck the victim multiple times in the face and body with his fists.

Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Fort Belknap Law Enforcement Services.

Two Passaic County Men Charged with Conspiracy and Bank Robbery

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NEWARK, N.J. – Two Passaic County men are scheduled to appear today in connection with the robbery of the Valley National Bank in Little Falls, New Jersey, on Feb. 27, 2020, U.S. Attorney Craig Carpenito announced.

Nicholas Ortiz, 37, of Paterson, New Jersey, and Jose Soto, 49, of Passaic, New Jersey, are each charged by complaint with one count of bank robbery and one count of conspiracy to commit bank robbery. Soto is also charged with an additional count of bank robbery in connection with the robbery of a PNC Bank branch in Passaic on Feb. 6, 2020. Both defendants were arrested today and are scheduled to have their initial appearances this afternoon with U.S. Magistrate Judge Cathy Waldor in Newark federal court by telephonic conference.

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

On Feb. 6, 2020, two suspects wearing ski masks and holding umbrellas entered the PNC Bank in Passaic, New Jersey, and allegedly began ordering everyone to get down on the floor. One of the suspects pointed a silver and black handgun customers and employees. The other suspect entered the bank and jumped over the teller counter, demanding that the teller turn over all cash in the drawers.

On Feb. 27, 2020, two suspects allegedly entered the Valley National Bank in Little Falls, New Jersey. One of the suspects pointed a silver and black gun at customers and employees.  The second suspect jumped over a teller counter and began rifling through various drawers. The suspects then forced the bank employees at gunpoint to open the vault, and began retrieving cash from the bank vault. The suspects forced all employees into the bank vault and then fled through the rear door.

Law enforcement officers were subsequently able to identify Soto as the owner of the getaway car from the PNC Bank robbery. They were also able to place Soto’s phone in the vicinity of the PNC Bank on the day of the robbery.

Law enforcement were able to identify Ortiz as the owner of the getaway car from the Valley National Bank Robbery. They were also able to place both Soto’s and Ortiz’s phone in the vicinity of the Valley National Bank on the day of the robbery. 

Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Little Falls Police Department, under the direction of Chief Steven Post; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; the Passaic County Sheriff’s Department, under the direction of Sheriff Richard Berdnik; and the Paterson Police Department, under the direction of Police Director Jerry Speziale, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office in Newark.

The charge and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Man from Oklahoma faces federal bank robbery charge

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            ALBUQUERQUE, N.M. – Randy Matthew Peraza, 47, of Oklahoma City, Oklahoma appeared in federal court in Roswell, New Mexico today for an initial appearance on a criminal complaint charging him with bank robbery.

            According to the criminal complaint, Peraza allegedly robbed a bank in Roswell on Mar. 13.  He allegedly went inside the bank, announced the robbery, and demanded money.  A teller handed over cash.  Peraza allegedly left the bank, walked across the street, and sat in the grass where police arrested him a short time later.  There were no injuries.

            Peraza is currently in custody awaiting a detention hearing.  He faces up to 20 years in prison if convicted.  A criminal complaint is only an accusation.  A defendant is presumed innocent until proven guilty.

            The FBI investigated this case with the Roswell Police Department.  Assistant U.S. Attorney Jacob Wishard is prosecuting the case.

Man Charged with Being a Felon in Possession of Firearm in New Mexico

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Carlton Craig Sandoval, 38, of Window Rock, Arizona, has been charged federally with being a felon in possession of a firearm and ammunition.

The FBI arrested Sandoval in Gallup, New Mexico, on March 16, 2020.

Sandoval is accused of having a firearm in a vehicle in Navajo, New Mexico, on January 1, 2020.

Sandoval had an initial appearance via teleconference in U.S. District Court in Albuquerque on Wednesday, March 18, 2020, with a preliminary/detention hearing set for March 20.

The Navajo Police Department Window Rock District assisted with the investigation.

The public is reminded all defendants are considered innocent unless convicted in a court of law.

(The FBI does not release mugshots of defendants in custody).

Rochester-Area Man Indicted for Fraud and Money Laundering

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Michael Bartusek was Chief Financial Officer of A New Hartford, New York Company

SYRACUSE, NEW YORK – Michael Bartusek, age 57, of Fairport, New York, was arrested yesterday on an indictment alleging wire fraud and money laundering stemming from his work as Chief Financial Officer (“CFO”) for a business in New Hartford, New York.  The announcement was made by United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The indictment alleges that Bartusek was formerly the CFO of a company based in New Hartford, New York, and covertly diverted approximately $776,000 of the firm’s money for personal expenses and to make a high-risk investment in African diamonds for his own benefit.   

The charges filed against Bartusek carry a maximum sentence of 20 years in prison, a fine of up to $250,000 or twice the loss suffered by the victim, and a term of supervised release of up to 3 years.  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.

Bartusek was arraigned yesterday in Syracuse, before United States Magistrate Judge Thérèse Wiley Dancks and was released pending a trial before Senior United States District Court Judge Thomas J. McAvoy.

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

This case is being investigated by the Federal Bureau of Investigation (FBI) and is being prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Nico Commandeur.

Supplier to Trenton Drug Trafficking Conspiracy Admits Heroin Distribution and Firearms Offenses

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Second Defendant Also Pleads Guilty to Facilitating Drug Trafficking Conspiracy from Prison

TRENTON, N.J. – A Trenton man today admitted his role as a supplier to a significant drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced today.

David Antonio, a/k/a “Pop,” a/k/a “Papi,” a/k/a “Santiago Ramirez,” 32, pleaded guilty today before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of a third superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Another Trenton resident, Wayne K. Bush, 42, pleaded guilty today before Judge Wolfson to Count Ten of the third superseding indictment charging him with using a telephone to facilitate a drug trafficking crime.

In October 2018, Antonio, Bush, and 24 other individuals were charged by criminal complaint with conspiracy to distribute heroin. On Feb. 27, 2020, a grand jury returned a 10-count third superseding indictment charging Antonio, Bush, and five other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Of the 26 defendants originally charged in the criminal complaint, Antonio and Bush are the 20th and 21st defendants to plead guilty. The charges remain pending against five defendants.

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

From October 2017 to October 2018, the defendants and others engaged in a large drug trafficking conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, Chambers Street, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that conspirators Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from Antonio. Intercepted communications among Taylor, Roberts, Antonio, and other conspirators revealed that Taylor and Roberts agreed to obtain from Antonio, and that Antonio agreed to supply, a “motherlode” of as many as 1,400 bricks of heroin in a single delivery – equating to approximately 1.5 kilograms of heroin. Taylor told Antonio that he intended to “flood the streets” of Trenton with this large supply, and Antonio agreed to supply a sufficient amount of heroin to Taylor that would allow him to do so. In communications with Taylor, Antonio indicated that he was “filling the bags” up with heroin and fentanyl. During coordinated arrests on Oct. 25, 2018, law enforcement arrested Antonio at a residence in Trenton, and recovered more than 1.4 kilograms of heroin, in addition to a significant amount of paraphernalia used to package heroin for distribution.

Telephonic communications intercepted pursuant to the wiretap order also revealed that Bush, who was incarcerated during the conspiracy on a related conviction, facilitated Taylor’s plan by providing specific advice and recommendations to Taylor on pricing and quantity, ensuring loyalty from his subordinates, and maintaining relationships with heroin suppliers.

The drug conspiracy count to which Antonio pleaded guilty carries a statutory mandatory minimum term of 10 years in prison, a maximum potential penalty of life years in prison, and a maximum fine of $10 million. Because Antonio admitted during his plea to having previously been convicted of a federal drug trafficking offense for which he served more than a year in prison, he may be eligible for a statutory enhanced penalty, which would increase the statutory mandatory minimum term of imprisonment to 15 years, and a maximum fine of $20 million. The facilitation charge to which Bush pleaded guilty carries a statutory maximum term of imprisonment of four years, and a maximum fine of $250,000. Antonio’s sentencing is scheduled for June 30, 2020, and Bush’s sentencing is scheduled for June 29, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the  direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s guilty pleas. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of

Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the investigation and prosecution of the case.

The government is represented by Attorney-in-Charge J. Brendan Day and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.

The charges and allegations pending against the remaining five defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

Two Men Sentenced for Attempted Enticement and Receipt of Child Pornography

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This week in federal court, two men were sentenced for attempting to sexually exploit minors and a third man was sentenced for failing to register as a sex offender, announced U.S. Attorney Trent Shores.

“The sexual predation of children by adults is perverse and sickening. Social media platforms are the primary means of communication by America’s youth, and, in turn, how predators hunt and seek to exploit vulnerable children,” said U.S. Attorney Trent Shores. “The immutable nature of child sex predators underscores the important work by cybercrimes detectives. From outreach and education to investigation and enforcement, our local, state, and federal law enforcement officers are working day and night to protect Oklahoma’s children. I commend their work and assure you we will continue to bring child predators to justice.”

Arthur James Mann, 34, of Bristow, was sentenced to 121 months in federal prison to be followed by 10 years of supervised release. A federal jury convicted Mann of attempted coercion and enticement of a minor on Dec. 17, 2019. Mann communicated with an individual he believed to be 13 years of age but instead was an undercover officer. From July 29 to Aug. 17, 2018, Mann communicated with the “girl” on Facebook, telling her that his name was Andrew Mason and that he was 16 years old. Mann initiated multiple sexual conversations with the “girl” and requested nude photos. Mann further suggested the two meet in order to have sex on Aug. 17, 2018. Mann arrived that night in his pajamas and slippers to meet the 13-year-old girl. Instead, he was met by officers from the Bristow Police Department and taken into custody. The Bristow and Sapulpa Police Departments conducted the investigation. Assistant U.S. Attorneys Edward Snow and Scott Proctor prosecuted the case.

Casey Adam Parker, 40, of Afton, was sentenced to 87 months in federal prison to be followed by seven years of supervised release. Parker pleaded guilty Dec. 11, 2019, to attempted receipt of child pornography. On July 2, 2019, Parker used a social media app to engage with an individual he believed to be a minor. In actuality, he was speaking to a law enforcement officer. Parker knowingly attempted to persuade the “minor” to engage in sexual activity and to send him sexually explicit pictures. Parker was arrested July 2, as part of Operation Independence Day, a month-long operation to apprehend child predators and recover victims of child exploitation and sex trafficking. The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Richard M. Cella prosecuted the case.

Additionally, a third man was sentenced this week for failing to register as a sex offender. Kacey J. Hamilton, 29, of Tulsa, aka Brandon Bickford, was sentenced to 12 months in federal prison to be followed by five years of supervised release. Hamilton pleaded guilty Dec. 11, 2019, to failure to register as a sex offender. Hamilton resided in Oklahoma since August 2018, and knowingly failed to register and update his registration as a sex offender. The Tulsa Police Department and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Victor A.S. Régal prosecuted the case.

Armored Truck Guard Is Charged For Stealing $325,000

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The Guard Allegedly Stole Cash Intended to Restock Bank ATMs

 CHARLOTTE, N.C. – A federal grand jury has returned a criminal indictment charging Shomarley Lockhard Hodge, 33, of Charlotte, with embezzlement, bank larceny, and transactional money laundering for stealing $325,000 in cash intended to restock bank ATMs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Hodge turned himself in to FBI agents this morning.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.

According to allegations contained in the indictment, in December 2019, Hodge began working as an armed guard for an armored truck company identified in the indictment as “Company L.” In that capacity, the indictment alleges, Hodge was responsible for the safe delivery of cash entrusted to Company L’s custody on behalf of a bank, to the bank’s branches and ATMs in the Charlotte area.

According to allegations in the indictment, on or about January 30, 2020, Hodge abused his position of trust and stole approximately $325,000 from the armored truck, which was supposed to be delivered to several bank ATMs. As alleged in the indictment, the following day, on January 31, 2020, and continuing through on or about February 6, 2020, Hodge began making large cash deposits into the bank account of an acquaintance. During the relevant time period, Hodge made more than 95 such cash deposits, totaling at least $139,000. Hodge also used some of the money to pay for personal expenses, and to make a $40,000 down payment on a 2020 BMW x7 vehicle, with a purchase price of more than $118,000.

Hodge had his initial appearance this morning before U. S. Magistrate Judge David C. Keesler. The embezzlement charge carries a maximum penalty of 30 years in prison and a $1 million fine.  The bank larceny charge carries a maximum penalty of 10 years in prison and a $250,000 fine.  The maximum penalty for transactional money laundering is 10 years in prison and a $250,000 fine.

The charges in the indictment are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.

The FBI in Charlotte investigated the case. Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.

Las Vegas and Tennessee Residents Sentenced to Prison for Roles in Fraudulent Scheme Targeting Small Business Owners

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LAS VEGAS, Nev. – Jason Demko, a Canadian national currently residing in Las Vegas, and Michael Guariglia, of Buffalo Valley, Tennessee, were sentenced today to 46 months in prison and five years of probation, respectively, for defrauding small business owners of nearly 12 million dollars, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.

“Small businesses are an important part of all communities in Nevada and across the country,” said U.S. Attorney Trutanich. “Among other things, they create meaningful jobs, support local neighborhoods, and provide opportunities for entrepreneurs. We appreciate the opportunity to partner with the FBI in bringing these defendants, who targeted small business owners, to justice.”

“The FBI will pursue those who plan, scheme and defraud innocent people for their own personal gain,” said Special Agent in Charge Rouse. “I'd like to thank the men and women of the FBI who work hard every day to identify and apprehend those responsible for taking advantage of trusting citizens; in this case small business owners."

Demko, 43, pleaded guilty on February 14, 2018, and Guariglia, 53, pleaded guilty on March 20, 2018. In addition to the prison term, U.S. District Judge Kent J. Dawson ordered both men to pay restitution (jointly and severally) in the amount of $11,509,087. Demko was also ordered to pay a criminal forfeiture money judgment in the amount of $307,060, and Guariglia was ordered to pay a criminal forfeiture money judgment in the amount of $68,666.

According to court documents, from about December 2009 to February 2014, Demko, Guariglia, their co-defendants, and others operated a telemarketing scam commonly known as the “grant-fee scam” targeting small business owners. In the grant-fee scam, criminals contact small business owners claiming to act as a broker for corporations, charitable foundations, or government agencies looking to give money away. The criminals ask the victims about their businesses, then claim to have found high dollar grants matching the victims’ businesses. For a substantial fee, the criminals offer to file the paperwork needed to obtain the grants, promising that the cost of their services will be covered by the grants the victims will assuredly receive. In reality, no such grants exist. The criminals simply take the victims’ money.

Often, criminals carrying out grant-fee scams then embark on a campaign of “lulling” and “reloading.” Lulling is a series of excuses and distractions designed to make the victims believe that the promised grants are imminent, if only this bit of paperwork or that action were completed. The main purpose of lulling is to delay the victims’ actions to recover the funds and delay the victims’ reports of the crime to law enforcement. Lulling is often done hand-in-hand with reloading, thus scamming more money from victims to pay additional sums for “unanticipated” documents or tax charges to obtain the promised grants. In reality, no such documents or tax charges are needed because no grants exist. Again, the criminals simply take the victims’ money. 

Demko, sometimes using the alias Jeff Ross, together with Guariglia, their co-defendants, and others, defrauded hundreds of individuals and families out of nearly 12 million dollars. To carry out their scheme, Demko, Guariglia, their co-defendants, and others made false representations and promises to small business owners to persuade and induce them to pay initial fees, usually between $2,500 and $5,000, for goods and services the victims thought would help them obtain grants for their businesses. The small business owners were told that the total cost for obtaining a grant was between $10,000 and $15,000, depending on the total amount of funding requested, and that the remaining fees would not be charged until the owners received 100 percent of the grant funding. Among other things, Demko, Guariglia, and their co-defendants falsely stated that they had obtained grants for other clients, when in fact they had not done so. The defendants also re-solicited clients for additional fees, including fees for business plans, when they knew that the plans were not going to assist the clients in obtaining any grants. They knew that the true purpose of their solicitations was to obtain funds to personally enrich themselves.

Demko, Guariglia, and their co-defendants operated their scam under JCD Business Services; Foundation Processing Center; Summit Business Consultants, Inc.; Inner Circle Corp., LLC; Sierra Investment Group, Inc.; Valley Business Development;  Quid Corp.; Interlan Charitable Foundation; Interlan Financial Corporation; Compass National, LLC; Compass National, Inc.; Direct Business Company, Inc.; Goldcom LLC; and Company Planning LLC.

Co-defendants Lorraine Riddiough (Demko’s mother, a Canadian national residing in Las Vegas who also goes by the name Lorraine Ann Mader) and Lissette Alvarez (a Las Vegas resident) have pleaded guilty. Alvarez was sentenced to three years probation. Riddiough is scheduled to be sentenced by U.S. District Judge Dawson on March 19, 2020.

The U.S. Attorney’s Office and the FBI urge the public to be alert to potential scams. If something sounds too good to be true, it probably is. The Federal Trade Commission posts alerts describing many different types of scams on its website at https://www.consumer.ftc.gov/features/scam-alerts. If you or someone you know has been the victim of a scam, please contact law enforcement without delay.

The case is a result of an investigation by the FBI. Assistant U.S. Attorneys Daniel Cowhig and Kimberly Frayn prosecuted the case.
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