Category: United States Attorneys General

Source: United States Attorneys General

Headline: Seven Aliens Indicted on Illegal Reentry Charges, False Representation of a Social Security Account Number, False Claim Of United States Citizenship with Intent to Engage Unlawfully in Employment, and Aggravated Identity Theft

RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging VALENTIN GARCIA-CRUZ, age 21, of Mexico, JUAN ALVAREZ-GUTIERREZ, age 39, of Mexico, ANA ROSA FERNANDEZ, age 53, of Honduras, JUAN LOPEZ-RODRIGUEZ, age 42, of Mexico, and MARCIO SANTOS-PORTILLO, age 44, of Honduras, with Illegal Reentry of a Deported Alien.

Additionally, a federal grand jury in Raleigh has returned an indictment charging JOSE NOEL IZAGUIRRE-INESTROZA, age 42, of Honduras, and WILSON ABAD INESTROZA, age 37, of Honduras, with False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, Aggravated Identity Theft, and Illegal Reentry of a Deported Alien.

If convicted of Illegal Reentry of a Deported Alien, GARCIA-CRUZ, found in Wake County, ALVAREZ-GUTIERREZ, found in New Hanover County, and LOPEZ-RODRIGUEZ, found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.

SANTOS-PORTILLO, found in New Hanover County, is alleged to have been previously deported subsequent to a felony conviction (evading arrest). If convicted, he would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.

FERNANDEZ, found in Onslow County, is alleged to have been previously deported subsequent to an aggravated felony conviction (conspiracy to manufacture marijuana). If convicted she would face maximum penalties of twenty years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.

If convicted of False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, Aggravated Identity Theft, and Illegal Reentry of a Deported Alien, IZAGUIRRE-INESTROZA, found in Sampson County, and INESTROZA, found in Sampson County, would face maximum penalties of twelve years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.

The charges and allegations contained in the indictments are merely accusations.  The defendants are presumed innocent unless and until proven guilty in a court of law. 

The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.

Source: United States Attorneys General

Headline: Albuquerque Man Sentenced to Prison for Federal Methamphetamine Trafficking Conviction

ALBUQUERQUE – Leroy Gallegos, 58, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison for his conviction on a methamphetamine trafficking charge.  Gallegos will be on supervised release for four years after completing his prison sentence.

Gallegos was arrested on Oct. 4, 2017, on a criminal complaint charging him with distribution of methamphetamine.  According to the complaint, Gallegos sold approximately four ounces of methamphetamine to an undercover law enforcement agent on Aug. 31, 2017, in Bernalillo County, N.M. 

Gallegos subsequently was indicted on Oct. 24, 2017, and was charged with distribution of more than 50 grams of methamphetamine.  Gallegos pled guilty to the indictment on Nov. 1, 2017, without the benefit of a plea agreement.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.

Source: United States Attorneys General

Headline: Former Goffstown Youth Coach is Sentenced to 25 Years in Federal Prison for Producing Child Pornography

            CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Matthew Riehl, 25, of Goffstown, New Hampshire, was sentenced to 25 years in federal prison for producing child pornography.

            According to court documents and statements in court, Riehl coached youth sports teams in Goffstown.  Between July of 2015 and August of 2016, while posing as a teenage girl, he contacted his victims using social media accounts, including Instagram, Snapchat and KIK Messenger, and persuaded his victims to take sexually explicit photographs of themselves and send the photographs to him.  When some of the victims sent pictures that were not sexually explicit, Riehl worked to convince them to take photographs showing more sexually explicit conduct.  In some instances, Riehl was able to coerce the victims to send explicit photographs by threatening to post on social media photographs that the victims previously had sent to him. 

            On August 31, 2016, a search warrant was executed at the defendant’s residence in Goffstown and Riehl’s cell phone was seized.  A forensic examination of the phone by the New Hampshire Internet Crimes Against Children (ICAC) Task Force revealed approximately 500 photographs of minor boys, in various states of dress, including examples of child pornography.  Numerous photographs depicted individuals who were members of teams that Riehl had coached.

            Riehl, who previously pleaded guilty, was sentenced to 25 years in federal prison, followed by 15 years of supervised release.  He will also have to register as a sex offender for life. 

            “This 25-year sentence demonstrates that those who use the Internet to prey on young victims will be prosecuted to the fullest extent of the law,” said Acting U.S. Attorney Farley.  “It is a sad fact of modern life that some individuals adopt false identities on the Internet in order to manipulate and exploit their young victims.  We will continue to work closely with our law enforcement partners to investigate and prosecute those who create child pornography.  I commend the bravery of the victims and their families who cooperated with this investigation and encourage all parents to speak to their children about the dangers that lurk on the Internet.”

            “This case involves an egregious breach of public trust, given Mr. Riehl’s former position in the community, and today’s significant sentencing ensures that he no longer has access to children,” said Acting Special Agent in Charge Michael Shea of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Boston.  “HSI is proud to stand shoulder-to-shoulder with our law enforcement partners and other stakeholders aggressively engaged in the effort against child predators.”  

            “This investigation is another fine example of the collaborative efforts of state, local and federal law enforcement agencies working to bring to justice those who prey on society’s most innocent victims,” said Detective Sergeant Thomas A. Grella, Commander, New Hampshire Internet Crimes Against Children Task Force. 

            The Goffstown Police Department would like to thank everyone involved in this case for coming forward and providing crucial information that has been instrumental in seeing this case come to a successful conclusion.

            This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Goffstown and Bedford Police Departments, the Hillsborough County Attorney’s Office, and the New Hampshire Internet Crimes Against Children Task Force, which includes members of several other police departments.  The case was prosecuted by Assistant U.S. Attorneys Arnold Huftalen and Georgiana Konesky.

            In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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Source: United States Attorneys General

Headline: Akron man indicted after firing on three officers, attempting two carjackings

An Akron man was indicted in federal court on charges related to shooting at three law enforcement officers as well as attempting to carjack someone and possessing methamphetamine, law enforcement officials said.

Michael P. Johnson, 34, was charged with one count of assault on law enforcement officers with a deadly weapon, two counts of discharging a firearm during a crime of violence, one count of brandishing a firearm during a crime of violence, two counts of attempted carjacking and two counts of possession with intent to distribute methamphetamine.

“This defendant put dozens of people at risk – the officers he fired upon, the innocent people he tried to carjack and the Akron residents simply passing by,” U.S. Attorney Justin E. Herdman said. “This defendant’s violent actions must be answered for, and we are pleased that he is being brought to justice.”

Akron Police Chief Ken Ball said: “This incident is an example of the grave danger that the men and women of the Akron Police Department face every day in service to their community.  We are pleased that the defendant will soon be made to answer for his behavior and will face a mandatory minimum of 65 years in prison for actions that could have cost innocent bystanders, and officers, their lives.” 

Johnson fired a Smith and Wesson .38-caliber revolver at law enforcement officers engaged in the performance of their official duties on Jan. 2. He also fired a firearm in relation to his drug trafficking activity and possessed at least 50 grams of methamphetamine, according to the indictment.

On the same date, Johnson brandished the .38-caliber revolver while attempting to carjack a 2009 Kia Sportage. He also attempted to carjack a 2002 Toyota Camry, according to the indictment.

Prosecutors are seeking to forfeit the firearm as well as approximately $8,672 in cash seized as part of the investigation.

If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case is being prosecuted by Assistant U.S. Attorneys Aaron Howell and Henry F. DeBaggis following an investigation by the Akron Police Department, the U.S. Marshals and the Drug Enforcement Administration. 

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

Source: United States Attorneys General

Headline: Mansfield woman charged with claiming nearly $800,000 in false tax returns

A Mansfield woman was indicted for falsely claiming that she was owed nearly $800,000 in tax refunds, said U.S. Attorney Justin E. Herdman and IRS Special Agent in Charge Ryan L. Korner.

Teresa Flohr, 56, was indicted on two counts of making false claims.

Flohr falsely claimed a refund of $389,966 for tax year 2012 and for $407,649 for tax year 2013, according to the indictment.

If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.  In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the Internal Revenue Service – Criminal Investigations.         

An indictment is only a charge and is not evidence of guilt.  The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.   

Source: United States Attorneys General

Headline: Corbin Man Found Guilty of Devising Murder-for-Hire Scheme

LONDON, Ky. — William Timothy Sutton, 55, of Corbin, Ky., has been convicted of four counts of interstate murder-for-hire and one count of possession of firearms by a convicted felon.  The verdict came yesterday, following six days of trial, which included testimony from all four intended victims of the scheme.  The jury deliberated for less than two hours in reaching its verdict.

The evidence at trial established that, in March of 2017, while incarcerated in the Whitley County Detention Center, Sutton offered to pay a fellow inmate forty thousand dollars ($40,000) to murder the Whitley County Attorney, the Whitley/McCreary County Commonwealth’s Attorney, and two ex-girlfriends. The evidence further established that Sutton mailed a letter to a relative from jail, asking the relative to provide the would-be hitman with one of Sutton’s own firearms to further the scheme.  Law enforcement became aware of the plan, interceded, and ultimately arrested Sutton.

  “The despicable conduct in this case not only victimized four individuals, but was a brazen attack upon the judicial process and the rule of law,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.  “Protecting the public from violence and ensuring the integrity of our system of justice are core principles of the Department of Justice and central priorities of our Office.  In our efforts to make our community safer, we will continue to confront and prosecute criminal conduct that undermines these principles.  I want to commend the work of our valued law enforcement partners, whose efforts made this prosecution possible.”

Sutton is scheduled to be sentenced on May 30, 2018. He faces up to ten years on each offense.  However, any sentence would be imposed only after the Court has considered the U.S. Sentencing Guidelines and the applicable statutes.    

US Attorney Duncan; Stuart Lowrey, Special Agent In-Charge, ATF; and Commissioner Rick Sanders of the Kentucky State Police, jointly announced the jury’s verdict.

The ATF and the Kentucky State Police conducted the investigation preceding the indictment.  Assistant United States Attorney W. Samuel Dotson represented the United States.

Source: United States Attorneys General

Headline: National Retailer Sentenced for Shipping Hazardous Materials Without Required Labeling

          LOS ANGELES – Glow Industries, Inc., a tobacco related product distributor headquartered in Perrysburg, Ohio, was sentenced on Monday in United States District Court after pleading guilty to a felony violation for shipping hazardous materials in packaging that did not display a required hazardous material label or marking on the package. United States District Judge Stephen V. Wilson sentenced Glow to a five-year term of probation and a fine of $250,000.

          On July 18, 2012, Glow shipped a package containing 72 butane cartridges from its Riverside, California facility to a smoke shop in Anchorage, Alaska. Butane is a highly flammable liquid used in lighters. The package containing the cartridges did not display any hazardous material warning. After being transported by air to Anchorage, the package was damaged; consequently, the butane cartridges were found inside. Investigation later revealed that a Glow employee had inverted the package so that the hazardous material marking originally placed on the package would not be visible.

          According to the plea agreement, Glow admitted that it had directed and instructed various managers and employees, who were responsible for packaging and/or shipping products, to conceal the hazardous nature of Glow’s hazardous material products from its shippers. Pursuant to that policy, butane cartridges, which were originally shipped by suppliers to Glow in boxes containing a hazardous material warning, were intentionally removed from the marked boxes and inserted into boxes that had no hazardous material marking or labeling. Glow further admitted that ozium, another hazardous material product sold by Glow, would be delivered to Glow in a box that displayed a hazardous material warning. However, prior to shipping the ozium to its customers, Glow employees would razor out the hazardous material warning and then provide the box to its shipper without the box displaying any hazardous material warning.

          Shipping companies rely upon hazardous material products bearing required labeling in order to properly handle and transport such items. Among the conditions of probation ordered by the Court, Glow is required to maintain an extensive compliance program which includes in person training for its employees or contractors and periodic audits to assure that Glow complies with any federal or local requirements for the labeling and shipping of hazardous materials.

          The matter was investigated by the U.S. Department of Transportation, Office of the Inspector General. The case was prosecuted by Assistant United States Attorney Dennis Mitchell and Assistant United States Attorney Amanda Bettinelli of the Environmental and Community Safety Crimes Section.

Source: United States Attorneys General

Headline: Social Security Employee Charged with Making a False Statement to Qualify for Low-Income Housing Subsidies Sentenced Today

U.S. Attorney Duane A. Evans announced that PERNEITA PRICE, age 31, of New Orleans, Louisiana, was sentenced today after previously pleading guilty to making a false statement to the government.

U.S. District Kurt D. Engelhardt sentenced PRICE to three years of probation and  ordered her to pay over $35,000 in restitution to the government.

According to documents filed in federal court, PERNEITA PRICE falsified federal affordable housing applications to qualify for low-income housing subsidies.

U.S. Attorney Evans praised the work of the U.S. Department of Housing and Urban Development, Office of Inspector General and the U.S. Social Security Administration, Office of the Inspector General in investigating this matter. Assistant United States Attorney, Richard R. Pickens, II is in charge of the prosecution.

Source: United States Attorneys General

Headline: Rhode Island Man Sentenced to 90 Months for Robbing Banks in Connecticut and Massachusetts

John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT CHADRONET, 41, formerly of East Providence, R.I., was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 90 months of imprisonment, followed by three years of supervised release, for committing three bank robberies in 2015, and for violating the conditions of his supervised release following a previous federal conviction.

According to court documents and statements made in court, CHADRONET used force, violence and intimidation to rob approximately $1,000 from a branch of TD Bank located at 1003 West Main Street in Branford, Conn., on July 27, 2015; approximately $2,329 from a branch of Citizens Bank located at 1187 Boston Post Road in Westbrook, Conn., on August 27, 2015, and approximately $697 from a branch of Citizen’s Bank located at 2991 Cranberry Highway in Wareham, Mass., on September 9, 2015.

At the time of this criminal conduct, CHADRONET was on federal supervised release for a prior bank robbery conviction in the District of Rhode Island.

On October 4, 2016, CHADRONET pleaded guilty in federal court to one count of bank robbery.

CHADRONET has been detained since September 10, 2015, when he was arrested on state charges related to a bank robbery that occurred in Milford, Connecticut, on August 18, 2015.  CHADRONET pleaded guilty in state court for the Milford robbery and was sentenced to 10 years of incarceration.

Judge Bryant ordered CHADRONET to pay $4,026 in restitution.

This matter was investigated by the Federal Bureau of Investigation, Connecticut State Police, Branford Police Department, Milford Police Department and Wareham (Mass.) Police Department.  The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Source: United States Attorneys General

Headline: Former Fannie Mae Employee Arraigned on Charges of Accepting Bribes and Approving Below-Market Sale of Foreclosed Homes

          LOS ANGELES – A Riverside woman who worked at Fannie Mae offices in Irvine faces fraud charges alleging that she earned more than $1 million from a scheme in which she took bribes and approved discounted sales of Fannie Mae-owned properties to herself and to brokers in exchange for cash kickbacks.

          Shirene Hernandez, 45, of Corona, was arraigned Friday afternoon on two counts of wire fraud.  After entering a plea of not guilty and being released on a $65,000 bond, Hernandez was ordered to stand trial on March 20, 2018.

          As alleged in the indictment, at all relevant times Hernandez was a real estate owned (REO) foreclosure specialist at the Federal National Mortgage Association (Fannie Mae). Fannie Mae is a government-sponsored entity under conservatorship of the Federal Housing Finance Agency (FHFA). As part of its operations, Fannie Mae acquires properties – sometimes called REO properties – through foreclosure and otherwise, and it then manages and sells those properties for Fannie Mae’s benefit. Under FHFA’s conservatorship, since at least 2012 Fannie Mae’s profits have gone to the United States Treasury Department, for the benefit of the American taxpayer.

          As an REO foreclosure specialist, Hernandez’s duties included assigning Fannie-Mae owned properties to listing brokers and approving sales of those properties based on offers submitted by those brokers. During the scheme, which is alleged to have begun no later than April 2011 and continued through at least July 2016, Hernandez allegedly approved sales of Fannie Mae-owned properties at discounted prices to herself and to brokers who paid her cash kickbacks, and she allegedly received bribes, in the form of cash payments, gifts, and other things of value, from brokers in exchange for listing opportunities and the resulting commissions that brokers earned on sales.

          According to the indictment, one of the Fannie-Mae owned properties that Hernandez purchased was purchased through intermediaries and alter egos who rented out the property and provided rent proceeds to Hernandez.

          The indictment alleges that Hernandez’s profits from the fraud exceeded $1 million.

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

          If Hernandez were to be convicted of the two charges in the indictment, she would face a statutory maximum sentence of 20 years in federal prison on each count.

          The case is being investigated by the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG).  Agents continue to investigate this case and other allegations of bribes accepted by other Fannie Mae employees.  If you believe you have information relevant to this investigation, please contact FHFA-OIG Senior Special Agent James Shields at 202-730-4013.

          The prosecution of Hernandez is being handled by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.