Keyport, Aberdeen residents among 15 charged in heroin, 'Molly' ring

SOMERVILLE — Fifteen people have been arrested in a seven-month investigation into the distribution of heroin and the party drug “Molly” in Watchung and Franklin.

The investigation, dubbed Operation Raw Deal, resulted in the seizure of $7,500 worth of heroin and $9,112 worth of Molly, the street name for methylone, Somerset County Prosecutor Geoffrey Soriano said Thursday.

Operation Raw Deal started in August after detectives in the Somerset County Prosecutor’s Office Organized Crime and Narcotics Task Force received information that one of the defendants was selling Molly in Somerset County.

That led detectives to discovery that four defendants were dealing heroin and Molly in Somerset County as well as Middlesex, Union, Monmouth and Essex counties and Luzerne County in Pennsylvania.

The investigation first targeted Jakai Jones, 30, of Keyport, who sold Molly to an undercover detective in Franklin, Soriano said.

Detectives than discovered that Jones was being supplied with drugs by Scott Carson, 29, of West Orange.

On Sunday, Somerset County detectives, along with detectives from the Essex County Prosecutor’s Office, Hudson County Prosecutor’s Office, West Orange Police Department, Sayreville Police Department and the U.S. Drug Enforcement Agency, executed search warrants on the residences and vehicles belonging to Carson, Jones and Andrea Lunetta, 26, of Sayreville and Semih Demir, 25, of Berkeley Heights.

Detectives found Carson at his home with approximately one ounce of heroin, 40 vials of cocaine, a 9mm handgun, a .40 caliber handgun, .22 caliber assault rifle and packaging materials, Soriano said.

Carson was charged with first-degree maintaining a heroin production facility, second-degree unlawful possession of an assault rifle, second-degree endangering the welfare of a child, fourth-degree flight, second-degree conspiracy to distribute heroin, three counts of second-degree possession of a firearm while committing a drug offense, third-degree conspiracy to distribute controlled dangerous substance third-degree, possession of cocaine with with intent to distribute and possession of drug paraphernalia.


Lunetta was charged with conspiracy to distribute Molly and heroin, third-degree conspiracy to distribute Molly, second-degree distribution of Molly and second-degree endangering the welfare of a child.


Jones was charged with second-degree distribution of Molly, third-degree conspiracy to distribute a controlled dangerous substance and second-degree conspiracy to distribute Molly.


Demir was charged with first-degree maintaining a heroin production facility, third-degree distribution of Molly, third-degree distribution of marijuana and third-degree conspiracy to distribute controlled dangerous substance.


Charged with third-degree conspiracy to distribute a controlled dangerous substance for allegedly making arrangements to sell narcotics were Samantha Simonson, 18, of Keansburg and Antonio Rivera, 28, of Perth Amboy.


Charged with attempting to possess a controlled dangerous substance or conspiracy to possess controlled dangerous substance for allegedly buying heroin and other drugs were Daniel Amadio, 39, of Keyport; Christen Reinglas, 23, of Aberdeen; Elijah Duplessis, 23, of West Orange; Zachary Robbins, 27, of Summit; Romeo Vergara, 26, of West Orange; Helena Freeman, 37, of West Orange; Chris Gamba, 23, of West Orange and Jessie Casanovas, 30, of West Orange.

San Jose Man Pleads Guilty to Impersonating DEA Agent and to Securities Fraud

SAN JOSE—Jonathan Hoang, of San Jose, California, pleaded guilty in federal court in San Jose on September 16, 2013, to impersonating a U.S. Drug Enforcement Agency (DEA) Agent securities fraud, announced United States Attorney Melinda Haag.
Hoang, 48, was indicted on July 25, 2012, by federal grand jury charging him with use of a counterfeit seal of an agency of the United States, in violation of18 U.S.C. § 506(a)(2); pretending to be an officer of the United States, in violation of 18 U.S.C. § 912; and possession of a counterfeit seal of an agency of the United States, in violation of 18 U.S.C. § 506(a)(3). He was also charged in a superseding information filed on September 12, 2013, with securities fraud in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. §§ 240.10b-5.
Hoang pleaded guilty to all four counts in the indictment and superseding information without a plea agreement with the United States. During the plea hearing, Hoang admitted to the factual basis for the guilty pleas to all charges.
The charges to which Hoang pleaded guilty involving impersonating a DEA special agent are based on the following, among other evidence: during the early morning of July 20, 2012, San Jose Police Department Officers found Hoang in a parked truck and discovered law enforcement type equipment in the truck. Upon investigation, the DEA determined that Hoang had indicated to his landlord that he worked for DEA. Hoang also indicated to his landlord that in order to do to his job with the DEA, the landlord could not run a credit check on Hoang. Hoang also provided his landlord with a drug screening report, credit check, and verification of employment from the DEA. The documents Hoang provided to his landlord included documents on purported DEA letterhead containing a DEA seal. In addition, when Hoang was arrested on July 20, 2012, the officers found a counterfeit DEA employee identification card. This document identified “Vu H. Hoang,” “Agent ID# 860501” as a special agent of the U.S. Department of Justice Drug Enforcement Administration. The false Identification card contained a DEA seal and a photograph of Hoang.
Hoang has never been employed as a law enforcement officer with the DEA nor has he ever been authorized by the DEA to hold himself out as a special agent of the DEA.
The charge to which Hoang pleaded guilty involving securities fraud is based on the following, among other evidence: on or about November 8, 2012, Hoang sold purported stock to an investor. Hoang offered to the investor 2,500 shares of stock in Utherverse Digital Inc. that Hoang claimed to own. The investor signed a purported “Subscription Agreement” to document the sale and gave Hoang a check for $2,500 as the purchase money for the stock. Hoang represented to the investor that Utherverse Digital operated a website called Redlight Center, Utherverse Digital was in the process of being acquired by another company, and the shares of Utherverse Digital would dramatically increase in value after the acquisition. At the time Hoang made these representations, he did not own stock issued by Utherverse Digital. Also, Utherverse Digital was not involved in negotiations with another person or entity for the acquisition of Utherverse Digital. Federal Bureau of Investigation agents found the purchase money check and purported Subscription Agreement in Hoang’s car on November 9, 2013, while executing a search warrant.
Hoang has been in custody since November 9, 2012.
Hoang’s sentencing hearing is scheduled for December 10, 2013, at 9:00 a.m., before The Honorable Edward J. Davila, U.S. District Court Judge, in San Jose. The following are the maximum statutory penalties for each count:
Count one of the indictment: 18 U.S.C. § 506(a)(2)-use of a counterfeit seal of an agency of the United States
Statutory penalties: a maximum prison sentence of five years, a maximum fine of $250,000, a maximum period of supervised release of three years, and a $100 special assessment.
Count two of the indictment: 18 U.S.C. § 912-pretending to be an officer of the United States
Statutory Penalties: a maximum prison sentence of three years, a maximum fine of $250,000, a maximum period of supervised release of one year, and a $100 special assessment.
Count three of the indictment: 18 U.S.C. § 506(a)(3)-possession of a counterfeit seal of an agency of the United States
Statutory penalties: a maximum prison sentence of five years, a maximum fine of $250,000, a maximum period of supervised release of three years, and a $100 special assessment.
Count one of information: 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. §§ 240.10b-5-securities fraud
Statutory penalties: a maximum prison sentence of 20 years, a maximum fine of $5,000,000, a maximum period of supervised release of three years, and a $100 special assessment.
However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the FBI, the DEA, the San Jose Police Department, and Internal Revenue Service-Criminal Investigation.
A copy of this press release may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.

Operator of Sports Merchandise Company Sentenced to Three Years in Prison for Running Fraud Scheme

PITTSBURGH—A resident of Allegheny County, Pennsylvania has been sentenced in federal court to serve 37 months’ imprisonment, to be followed by three years’ supervised release, and ordered to pay restitution in the amount of $601,470.31, on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Andrew A. Demasi, 63, of Natrona Heights, Pennsylvania.
According to information presented to the court, Demasi and his partner, Ronald Halpern, operated a business known as A&R Services, Inc., from an apartment at Washington Place, Pittsburgh, Pennsylvania. On behalf of A&R Services, Demasi and Halpern negotiated the purchase, sale, and delivery of sports-related merchandise and novelty items. During the period April 2007 through September 2007, Demasi and Halpern devised and executed a scheme to defraud manufacturers, wholesale distributors, and interstate shipping companies of money and property valued at more than $600,000. The fraud scheme included obtaining merchandise for resale by applying for extensions of credit from the various manufacturers, wholesalers, and shipping companies based on false, financial information provided by Demasi.
On August 3, 2007, Demasi and Halpern, in executing the scheme, obtained merchandise, delivered by interstate carrier FedEx, from Pro Specialities Group, Inc., in San Diego, California, based upon credit extended upon materially false financial information about the financial health and history of A&R Services, Inc. Demasi and Halpern had no intention of paying for the merchandise or its shipment after receipt.
Ronald Halpern entered a guilty plea before Judge Arthur Schwab and was sentenced in May 2013 to serve a 24-month term of imprisonment.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Office of the United States Trustee for the investigation leading to the successful prosecution of Demasi.

Grand Jury Returns Superseding Indictments in Homestead-Area Drug and Gun Cases

PITTSBURGH—On August 6, 2013, a federal grand jury issued superseding indictments in six related cases involving drug trafficking and violence in Homestead, Pennsylvania, United States Attorney David J. Hickton announced today. The superseding indictments added new firearms and drug trafficking counts and one additional defendant, to drug and gun charges filed against 34 people on March 14, 2013. The original indictments followed a year-long federal, state, and local law enforcement investigation.
The Superseding Indictments
The first superseding indictment, containing seven counts, named:

• Brandon Thompson, 30, of Homestead, Pennsylvania;
• Antonio Hardin, 32, of Monroeville, Pennsylvania;
• James Walker, 44, of Homestead;
• Joseph Thompson, II, 25, of Homestead;
• Richard Wood, 34, of Homestead;
• Gregory Harris, Jr., 24, of Homestead; and
• Luther Harper, 27, of Homestead.

According to the indictment, from in and around April 2012, to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Brandon Thompson, Hardin, Walker, Joseph Thompson, II, Wood, Harris, and Harper, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment also charges that on or about August 12, 2012, Brandon Thompson used, carried, possessed in furtherance of, brandished, and discharged firearms during and in relation to that heroin trafficking conspiracy. The indictment further charges Antonio Hardin with, on or about February 11, 2013, possessing with the intent to distribute a quantity of heroin, possessing a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Last, on or about January 26, 2013, the indictment charges Richard Wood with possession with intent to distribute a quantity of heroin, and charges Walker and Hardin with distribution and possession with intent to distribute a quantity of heroin. There were no new charges added. However, Brandon Thompson and Antonio Hardin were both named in additional forfeiture allegations. Ed Cook was charged in the initial indictment for discharging a firearm during and in relation to a drug trafficking crime, and he has since pled guilty to that charge.
The second superseding indictment, containing two counts, named:

• Troy Anderson, 24, of Braddock, Pennsylvania;
• Mark Felder, 25, of Duquesne, Pennsylvania; and
• Dorianne Harris, 20, of Wilkinsburg, Pennsylvania.

According to the indictment, from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Anderson, Felder, and Harris, conspired with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. In terms of new charges, Anderson was charged with possession of a firearm in furtherance of a drug trafficking crime on or about March 14, 2013.
The third superseding indictment, containing three counts, named:

• Sterling Marshall, 18, of Munhall, Pennsylvania;
• Tireal Wheeler, 19, of Homestead; and
• Jordan Murphy, 21, of Homestead.

According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Marshall, Wheeler and Murphy conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. Additionally, the indictment charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. In terms of new charges, Marshall was charged with possession with the intent to distribute a quantity of heroin on or about March 14, 2013. Andre Corbett was charged in the initial indictment, and he has since pled guilty to both counts contained within that indictment.
The fourth superseding indictment, containing six counts, named:

• Jay Germany, 22, of Pittsburgh;
• Brady Hall, 19, of Pittsburgh;
• Jaquan Washington, 23, of Homestead;
• Hector Guadalupe, Jr., 36, of Brooklyn, New York;
• Santino Drew, 34, of New Brunswick, New Jersey;
• Thomas Martinez, 34, of Edison, New Jersey; and
• Louis Spinnenweber, Jr., 34, of Canonsburg, Pennsylvania.

According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Germany, Hall, Washington, Guadalupe, Jr., Drew, and Martinez, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, Germany, Hall, and Washington knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Additionally, on or about January 30, 2013 and January 31, 2013, Drew and Martinez possessed with the intent to distribute 100 grams or more of heroin. Also, on or about November 21, 2012, Spinnenweber, Jr., possessed with the intent to distribute a quantity of a heroin. Last, on or about October 30, 2013, Germany and Hall possessed with the intent to distribute and did distribute a quantity of heroin, and, in a new charge, Washington engaged in that same conduct on or about March 11, 2013.
The fifth superseding indictment, containing 11 counts, named:

• Bryce Harper, 26, of Homestead;
• Diamantia Serrano, 19, of McKeesport, Pennsylvania;
• acie Harper, 24, of Homestead;
• Ryan Harper, 36, of Munhall; Jamar Harper, 32, of Homestead;
• Ronnell Robinson, 19, of Duquesne;
• Seth Lindsey, 18, of Duquesne; and
• Diassandai Serrano, 18, of McKeesport.

According to the indictment, from in and around July, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Bryce Harper, Diamantia Serrano, Lacie Harper, Ryan Harper, Jamar Harper, Ronnell Robinson, and Seth Lindsey conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Also, the indictment charges that on or about September 19, 2012, Bryce, Ryan, and Jamar Harper, together with Diamantia Serrano, possessed with the intent to distribute a quantity of heroin.
The indictment added the following eight new counts. On or about February 27, 2013, Diamantia Serrano possessed with the intent to distribute a quantity of heroin, and on that same day, his brother, Diassandai Serrano, a new defendant, possessed a firearm in furtherance of a drug trafficking crime. On March 13, 2013, Ryan Harper distributed a quantity of heroin, and on February 13 and 19, 2013, Ronnell Robinson distributed a quantity of heroin. On September 17, 2012, Ronnell Robinson possessed a firearm in furtherance of a drug trafficking crime, and Bryce Harper was charged with that same crime on March 14, 2013. Also on March 14, 2013, Bryce Harper was charged with being a felon in possession of a firearm.
The sixth superseding indictment, containing five counts, named:

• Thomas Hopes, 21, of Pittsburgh;
• Keith Harris, 22, of Homestead;
• Anthony Smith, 21, of Homestead,;
• Hakeem Kirby, 19, of Homestead;
• William McDonald, 68, of Homestead;
• Ronnell Robinson, 19, of Duquesne;
• Gregory Harris, Jr., 24, of Homestead;
• Sterling Marshall, 18, of Munhall; and
• Diamantia Serrano, 19, of McKeesport.

According to the indictment, from in and around May, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Hopes, Harris, Smith, Kirby, and McDonald conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. The indictment also charges that on or about December 18, 2012, Hopes and Kirby possessed with the intent to distribute and did distribute a quantity of heroin. Also, on March 14, 2013, Kirby possessed with the intent to distribute a quantity of heroin. Last, the indictment charges that on or about January 3, 2013, Robinson, Keith, and Gregory Harris, Marshall, Serrano and Hopes used, carried, possessed in furtherance of, brandished and discharged firearms during and in relation to a drug trafficking crime and a crime of violence.
Penalties
On the conspiracy to distribute one kilogram or more of heroin count, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both, for a first-time drug trafficking conviction. For those with one prior felony drug trafficking conviction, the law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $20,000,000 or both, and for those with two prior felony drug trafficking convictions, the law provides for a mandatory minimum sentence of life in prison.
On the firearms’ counts charging possession, use, brandishing or discharge of a firearm in furtherance of a crime of violence or a drug trafficking crime, the law provides for a mandatory minimum sentence of five years if the gun is possessed in furtherance of the crime, seven years if the gun is brandished in furtherance of the crime, and 10 years if the gun is discharged in furtherance of the crime. These sentences, by law, must run consecutively to any sentence imposed for the narcotics counts. In addition, the law imposes a fine of up to $250,000. For second or consecutive counts of this nature, the law provides for a mandatory minimum consecutive sentence of 25 years.
For the firearms count charging possession of a firearm by a felon, the law provides for a maximum total sentence of up to ten years in prison, a fine of $250,000, or both. However, if the court determines that the defendant has three previous convictions for either crimes of violence or serious drug offenses, the law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Pennsylvania Office of the Attorney General; City of Pittsburgh Bureau of Police; Pennsylvania State Police; Allegheny County Sheriff’s Office; McKeesport Police Department; Munhall Police Department; and the West Homestead Police Department conducted the investigation that led to the prosecution of the above-mentioned individuals.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Suitland PCP Dealer Sentenced to 12 Years in Prison

GREENBELT, MD—U.S. District Judge Roger W. Titus sentenced Shareef Muhammad, age 34, of Suitland, Maryland, today to 12 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine, and heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration-Washington Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Muhammad’s guilty plea, from at least June 2010 through February 2012, he was a part of a drug trafficking conspiracy led by Samuel Braxton based in and around Temple Hills, Maryland. Braxton regularly received multi-ounce to quarter-gallon quantities of PCP as well as heroin, crack, and powder cocaine from his sources of supply. Braxton sold the PCP, heroin, and crack to Muhammad and other drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.
In August 2011, law enforcement made two purchases of PCP from co-conspirator Cortez Winston, totaling about 16 ounces of PCP. Muhammad had supplied Winston with the PCP, which he had obtained from Braxton. On September 9, 2011, law enforcement arrested Muhammad in Southeast Washington, D.C. and seized from Muhammad’s vehicle approximately 31 ounces of PCP which he had obtained from Braxton.
Over the course of the conspiracy, Muhammad was responsible for the distribution of at least three kilograms of PCP, 28 grams of crack cocaine, and 100 grams of heroin.
Judge Titus also found that Muhammad attempted to obstruct justice. According to Muhammad’s plea agreement, on August 3, 2012, while he was in prison, Muhammad mailed a letter to an associate instructing that person to bring a second enclosed letter to another individual. Muhammad instructed that the second individual should deliver the second letter to Muhammad’s co-defendant, have Muhammad’s co-defendant re-write the letter, and have it notarized. The second letter appeared to have been drafted by Muhammad and had the co-defendant denying that he/she had ever obtained drugs from or discussed drugs with Shareef Muhammad.
A total of 15 members of the conspiracy have been convicted, including Samuel Braxton, age 44, of Temple Hills, Maryland; Mac “Easy” Holland, age 40, of Upper Marlboro, Maryland; and Norman Lee, Jr., age 36, of Washington, D.C., who were sentenced to 27 years in prison, 15 years in prison and 188 months in prison, respectively. Cortez Winston, age 22, of Suitland, Maryland, also pleaded guilty and is scheduled to be sentenced on October 21, 2013.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Metropolitan Police Department, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule, Steven E. Swaney, and Arun Rao, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Clinton Woman Pleads Guilty in $2.3 Million Government Contract Fraud Scheme

GREENBELT, MD—Larayne Whitehead, age 34, of Clinton, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina, and Tennessee which they incorporated to bid on contracts to provide goods—such as books, snowmobiles, plants, and paint—to federal, state, and local government agencies. Most of the contracts were awarded using the FedBid online marketplace, which contractors use to compete for federal contracts through a reverse auction process. The conspirators’ businesses often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to act as subcontractors and supply the goods required by contract by providing fake references and by falsely promising that the subcontractors would be paid after the government paid Whitehead. After the subcontractors delivered the goods required by the contracts, government agencies paid Whitehead, typically by electronic transfers to bank accounts set up in the business names but controlled by Whitehead. Whitehead fraudulently retained these proceeds for her own personal benefit and did not pay the subcontractors.
The conspirators typically operated under a particular business name for a period of six to 12 months until the business was either disqualified from the FedBid marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly registered business name. The conspirators initially used their true names and addresses to register their businesses, but later attempted to conceal their true identities by using aliases.
Whitehead has agreed to forfeit $2,393,579 and a car.
Whitehead faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Alexander Williams, Jr. scheduled her sentencing for January 14, 2014 at 12:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force—chaired by Assistant Attorney General for the Criminal Division Lanny A. Breuer—includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney Christen A. Sproule, who is prosecuting the case.

Westlake Man Sentenced to More Than 21 Years in Prison for Meth and Gun Possession Charges

LAKE CHARLES, LA—United States Attorney Stephanie A. Finley announced Anthony Frederick “Tony” Giaimis, 48, of Westlake, Louisiana, was sentenced Thursday by U.S. District Judge Patricia Minaldi to 262 months in prison and five years of supervised release for conspiring to distribute methamphetamine, 262 months in prison and four years of supervised release for possessing with intent to distribute methamphetamine, and 262 months in prison and six years of supervised release for felony weapon possession. He will serve prison and supervised release terms for all three counts concurrently.
On April 10, 2013, after a three-day trial, a jury found Giaimis guilty of conspiring to distribute 50 grams of methamphetamine, possession of methamphetamine with intent to distribute, and a felon in possession of 14 firearms. According to witness testimony and evidence presented at trial, during the dates of the conspiracy, Giaimis obtained more than 80 ounces of methamphetamine from two men in the Houston area, which he sold to people living in and around Calcasieu Parish. On January 6, 2012, police found 14 firearms during a search of the marina where Giaimis was living, the Bridge Point Yacht club, which is owned by his mother. Giaimis had been previously convicted of a felony in June of 2011 in the 253rd District Court of Texas in Chambers County for possession with intent to deliver more than 200 grams of methamphetamine.
Justin W. Brewer, 42, and Ricky Martinez, 43, both of Houston, Texas, were also charged in the same indictment with Giaimis in August 2012. Brewer was sentenced on July 25, 2013 by Judge Minaldi to 60 months in prison and five years of supervised release for possession with intent to distribute more than 50 grams of methamphetamine. According to evidence presented at Brewer’s guilty plea, he was arrested on December 28, 2011, after a Westlake police officer found 51.1 grams of pure methamphetamine in the trunk of his car. An informant told authorities that Brewer was in the Westlake area and was transporting a large quantity of methamphetamine. After the officer pulled Brewer over for a traffic violation, the officer found a drug smoking pipe and other drug paraphernalia in the console of the car, and a box containing methamphetamine in the trunk. He pleaded guilty on April 8, 2013.
Martinez is scheduled for a change of plea hearing on August 7, 2013. He is charged with one count of conspiracy to distribute more than 50 grams of methamphetamine and one count of possession of more than 50 grams of methamphetamine with intent to distribute.
“It took the work of police, sheriff’s deputies, and federal agents, along with witnesses, to bring the defendants in this drug distribution operation to justice,” Finley stated. “I want to thank all of those who put their time and lives on the line to remove harmful and illegal drugs from our streets.”
The Westlake Police Department, Calcasieu Parish Sheriff’s Office, Lake Charles Police Department, FBI Safe Streets Task Force, Combined Anti-Drug Team (CAT) Task Force, and the Drug Enforcement Administration Laboratory conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.

Three Northeast Alabama Residents Indicted for Distributing Methamphetamine

BIRMINGHAM—A federal grand jury late Tuesday indicted three northeast Alabama residents for conspiracy to distribute methamphetamine in Marshall County, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
An indictment filed in U.S. District Court charges Angela Nicole Holland, 39; Chester Lynn Davidson, 60; both of Albertville, and Robert Bradley Fussell, 38, of Boaz, with conspiring to distribute and to possess with intent to distribute at least 50 grams of the controlled substance, methamphetamine, between November 2012 and February.
The indictment also charges Davidson with two individual counts of distributing methamphetamine on January 29 and January 30. It charges Fussell with one count of possessing methamphetamine with intent to distribute the drug on January 30 and charges Holland with one count of distributing methamphetamine on February 15 and with possessing with intent to distribute five grams or more of the drug on that date.
The conspiracy charge carries a penalty of 10 years to life in prison and a fine of up to $10 million. The charges of possessing with intent to distribute or distributing methamphetamine carry a maximum penalty of 20 years in prison and a $1 million fine. Possessing with intent to distribute at least five grams of methamphetamine carries a possible prison sentence of five to 40 years and a maximum $5 million fine.
The FBI investigated the case, which Assistant U.S. Attorney Laura D. Hodge is prosecuting.
The public is reminded that an indictment contains only charges. It will be the government’s responsibility to prove the charges beyond a reasonable doubt at trial.

Steinauer Woman Charged with Conspiracy to Distribute Methamphetamine

United States Attorney Deborah R. Gilg announced that on July 16, 2013, an indictment was unsealed charging Angie Ray Shera, age 38, of Steinauer, with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing methamphetamine between January 2011 and February 2013.
The possible penalty is not less than 10 years and up to life in prison and a fine of up to $10,000,000. Following any prison term, there would be a term of supervised release of not less than five years.
Shera appeared in federal court in Lincoln on July 17, 2013, and was ordered held without bond. Trial is scheduled to begin on September 10, 2013.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff’s Department, the Federal Bureau of Investigation (FBI), the University of Nebraska-Lincoln Police Department, and by the Nebraska State Patrol.

Boise Man Sentenced in Aryan Knights Meth Investigation

BOISE—Jose Silva, 31, of Boise, Idaho, was sentenced today to 52 months in prison, followed by three years of supervised release, for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Silva appeared today before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. He pleaded guilty to the charge on March 6, 2013.
According to the plea agreement, Silva admitted that on January 10, 2012, he sold one-quarter ounce of methamphetamine to a confidential informant for $450. Forensic analysis of the methamphetamine by the Drug Enforcement Administration (DEA) laboratory determined the substance contained more than four grams of actual methamphetamine.
Silva is one of 23 people charged as a result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the Aryan Knights, a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine. The 23 defendants have all pleaded guilty, 19 have been sentenced, and four are awaiting sentencing.
The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Corrections. The Organized Crime and Drug Enforcement Task Force (OCDETF) also contributed to the investigation, including the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
Silva was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is composed of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.

Investigation Leads to Indictment of 11 People on Federal Gun and Drug Charges

BOISE—U.S. Attorney Wendy J. Olson announced the arrests earlier today of Jeramie Ethan Mahler, 26, of Star, Idaho; Michelle Christina Ritch, 35; Nearia “Nick” William Pinnell, 42; Wendy Demirdjian Harrison, 52; and Daniel Eric Vaughan, 51, all of Nampa, Idaho; and Scott Vicente Hernandez, 42, of Oakland, California, on federal charges of conspiring to distribute methamphetamine. The Treasure Valley Metro Violent Crimes Task Force, assisted by FBI SWAT, executed the federal arrest warrants today at four Treasure Valley locations.
On July 9, 2013, a federal grand jury in Boise returned a superseding indictment charging 11 defendants, including the six named above, with conspiracy to distribute over 500 grams of methamphetamine; two defendants also face charges for illegally possessing firearms. Hernan Gomez-Gutierrez, 30, a Mexican national, and Carlos Eberardo Tovar, 28, of Nampa, charged in the original indictment filed on May 16, 2013, were arrested previously. Both are set for trial on September 10 before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. Two defendants, Darrell Ray Zirschry, 32, of Nampa, and Bobbi Eileen Woolsey, 35, of Boise, are currently in custody on state charges. The final defendant, Juan Luis Mojica-Barragan, 24, a Mexican national, has an outstanding warrant for his arrest.
The charge of conspiracy to distribute over 500 grams of methamphetamine is punishable by a minimum term of 10 years and up to life in prison and a maximum fine of $10 million. Two defendants, Gomez-Gutierrez and Mojica-Barragan, were also indicted for distributing methamphetamine and cocaine, which is punishable by up to 20 years in prison and a maximum fine of $1 million. Zirschry is charged with unlawfully possessing a firearm, which is punishable by up to 10 years in prison and a maximum fine of $250,000. Mahler is charged with brandishing and discharging a firearm in furtherance of a drug trafficking crime, which is punishable by a minimum term of 10 years up to life in prison and a maximum fine of $250,000.
The indictment is the result of an investigation by the Treasure Valley Metro Violent Crimes Task Force and the Drug Enforcement Administration. The Treasure Valley Metro Violent Crimes Task Force is composed of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the state of Idaho to address gang crimes. The Treasure Valley Partnership is composed of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Former Marion Police Chief Pleads Guilty to Drug Conspiracy Charge

ABINGDON, VA—United States Attorney Timothy J. Heaphy announced today that the former chief of police in Marion, Virginia pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to a charge involving the distribution of methamphetamine, cocaine, oxycodone, and hydrocodone.
Michael Dean Roberts, a.k.a., “Fireball,” age 54, of Saltville, Virginia, entered a plea of guilty to a one-count nformation charging conspiracy to distribute methamphetamine, cocaine, oxycodone, and hydrocodone. Roberts faces a potential maximum sentence of up to 20 years’ imprisonment and a potential fine of $1,000,000.
According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary Lee, Roberts was involved in the distribution of cocaine, methamphetamine, oxycodone, and hydrocodone between 2006 and June 2013, all while employed as the chief of police of the Marion, Virginia Police Department. As part of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; the Drug Enforcement Administration; the Virginia State Police; and the Washington County Sheriff’s Department, law enforcement officers utilized a confidential informant to obtain hydrocodone pills from Roberts on three separate occasions in May and June 2013.
The investigation determined that Roberts was involved in the distribution of at least 7,331 hydrocodone pills, 365 grams of methamphetamine, and small amounts of cocaine and oxycodone. The investigation further determined that Roberts used his position as chief of police to obtain some of these drugs from the Marion Police Department evidence room.
Sentencing has been set for October 9, 2013, in the United States District Court for the Western District of Virginia in Abingdon.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; the Virginia State Police; the Drug Enforcement Administration; and the Washington County Sheriff’s Department. Assistant United States Attorney Zachary Lee is prosecuting the case for the United States.

FBI Seeks Fugitive Gerardo Garcia in Connection with Drug Trafficking Investigation

The FBI issued a wanted poster (at the conclusion of this release) on Friday, July 12, 2013, for Gerardo Garcia, age 64 or 63, of Vado, New Mexico, on a federal arrest warrant charging him with conspiracy to distribute cocaine.
Garcia avoided arrest on May 8, 2013, when a multi-agency investigation in Doña Ana County, New Mexico, arrested 22 people on federal drug trafficking charges.
A total of 29 residents of Doña Ana County, New Mexico, and El Paso County, Texas, face charges in connection with this investigation.
Garcia, a white Hispanic male, is described as 5’6” to 6’0” tall, weighing approximately 120 to 155 pounds, and having brown hair and brown or hazel eyes.
Garcia is a Mexican national.
He is known to drive a red Ford pickup truck.
Garcia should be considered armed and dangerous.

Anyone with information on Garcia’s whereabouts is asked to contact the FBI in Albuquerque (505-889-1300) or send a tip online at https://tips.fbi.gov.
The charges in this operation were the result of an intensive four-month multi-agency investigation led by the FBI’s Las Cruces Cross-Border Drug Violence Hybrid Squad and Southern New Mexico Gang Task Force that targeted known drug dealers in southern Doña Ana County.
The U.S. Border Patrol and the Las Cruces-Doña Ana County Metro Narcotics Agency, which is composed of officers from the New Mexico State Police, the Doña Ana County Sheriff’s Office, and the Las Cruces Police Department, participated in the investigation, which was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Resources:
- Gerardo Garcia FBI wanted poster
- Press release concerning multi-agency investigation

Seven Arrested, Charged with Selling Illegal Drugs to Veterans Treated at VA Medical Centers in New Jersey

NEWARK, NJ—Seven men with access to two VA medical centers in New Jersey were arrested this morning by special agents of the U.S. Department of Veterans Affairs-Office of Inspector General and the FBI on federal charges alleging they sold illegal drugs to veterans being treated at the centers, U.S. Attorney Paul J. Fishman announced.
The seven defendants were each charged in separate criminal complaints with various counts of distributing controlled substances—including heroin, crack, and hydromorphone—at the VA medical centers in East Orange and Lyons, New Jersey. Five of the men were arrested this morning at the Lyons facility, one was arrested at the East Orange facility, and one was arrested at his home. All are expected to make their initial appearances this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
“According to our charges, these seven men abused their access to VA medical facilities to peddle dangerous drugs to other veterans undergoing treatment,” said U.S. Attorney Fishman. “It is tragic that those who have served their country would exploit their fellow veterans.”
“This investigation was initiated by VA OIG two years ago in response to the fatal heroin overdose of a veteran at the VA medical center in Lyons, New Jersey,” said Jeffrey G. Hughes, Special Agent in Charge, U.S. Veterans Affairs, Officer of Inspector General, Northeast Field Office. “Subsequently, the FBI and VA OIG jointly launched an operation, which focused on combating the sale of heroin and crack cocaine to patients at Lyons. VA management at Lyons, including VA Police, provided invaluable support during the course of this investigation. We hope anyone selling drugs at VA treatment facilities will realize that we will vigorously pursue them to protect veterans seeking treatment.”
“The Federal Bureau of Investigation-Newark Division and the Department of Veterans Affairs Office of Inspector General conducted a joint investigation targeting the distribution of narcotics on the grounds of VA Hospitals in New Jersey,” said FBI Special Agent in Charge Aaron T. Ford. “As a result of this joint investigation, the FBI and VA OIG have been successful in disrupting the criminal activity occurring on the VA grounds. The Newark Division will continue to work in conjunction with our federal, state, and local partners to combat the drug problem.”
The VA medical centers provide a wide range of medical and rehabilitation treatment services to veterans, including drug abuse and additional rehabilitation services, along with vocational training and other social services. According to the complaints, the defendants, each of whom is a veteran with privileged access to the buildings and grounds of the medical centers, sold controlled substances to other veterans receiving services from the centers.
Each count with which the defendants are charged carries a maximum potential penalty of 20 years in prison and a fine of $1 million, or twice the gross gain or loss from the offense. The defendants and counts with which they are charged are as follows:

Defendant	Charges
Phillip Johnson, 52, of Basking Ridge, New Jersey	count one—heroin distribution; count two—cocaine base distribution
Robin Merritt, 55, of Hackensack, New Jersey	count one—heroin distribution count two—cocaine base distribution count three—hydromorphone distribution
Abdul Kareem Muhammad, 50, of Boundbrook, New Jersey	count one—heroin distribution count two—cocaine base distribution
Yusef Muhammad, 59, of North Plainfield, New Jersey	count one—heroin distribution
Thomas Pearson, 66, of Dover, New Jersey	count one—heroin distribution
Christopher Shalaby, 31, of Somerville, New Jersey	count one—heroin distribution
John Stuckey, 49, of Newark	count one—heroin distribution

U.S. Attorney Fishman praised special agents of the Veterans Administration Office of Inspector General, under the direction of Special Agent in Charge Hughes in Newark; and the FBI, under the direction of Special Agent in Charge Ford in Newark, with the investigation leading to the charges. He also thanked the VA Police for their assistance.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Federal Jury Convicts Providence Man on Heroin Trafficking Charges

PROVIDENCE, RI—Cristian Jimenez, a/k/a Alacran, 32, of Providence, faces between 10 years to life in federal prison at sentencing after a federal court jury on Monday convicted him of one count of conspiracy to possess and distribute heroin and three counts of possession and distribution of heroin, announced Unites States Attorney Peter F. Neronha; Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office; and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
Jimenez was one of 11 individuals identified by law enforcement as being members of a Dominican organization that trafficked heroin into Rhode Island. The other 10 individuals charged and arrested in this matter previously pled guilty in U.S. District Court in Providence.
The jury acquitted Jimenez of one count of possession of a firearm in furtherance of drug trafficking crimes.
An investigation by the Federal Bureau of Investigation Safe Streets Gang Task Force, the Drug Enforcement Administration Drug Task Force, Rhode Island State Police, and local law enforcement officers assigned to the task forces resulted in the execution of federal search warrants and arrest warrants in May 2012 in Providence, Cranston, North Providence, Pawtucket, and West Warwick, Rhode Island. More than three kilos of heroin, approximately 200 grams of cocaine, approximately $450,000 in cash, a substantial quantity of high-end jewelry, five firearms (four of them loaded), and 12 vehicles (several of which contained “hides”) were seized by law enforcement.
According to the government’s evidence presented at trial, on numerous occasions Jimenez bought and sold significant quantities of heroin and directed the packaging and distribution of the drugs. The government’s evidence showed that Jimenez’s Providence residence was one of the primary locations used by the drug trafficking organization to package and distribute significant quantities of heroin.
Jimenez, who has been detained since his arrest on September 26, 2012, is scheduled to be sentenced by U.S. District Court Judge William E. Smith on September 13, 2013.
The case was prosecuted by Assistant U.S. Attorney Adi Goldstein and First Assistant U.S. Attorney Kenneth P. Madden.
The FBI’s Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI; Providence, Cranston, and Woonsocket Police Departments; and the Rhode Island National Guard.
The DEA Drug Task Force consists of agents and law enforcement officers from the DEA; Rhode Island State Police; and the Cranston, East Providence, Pawtucket, Providence, Warwick, Newport, and Woonsocket Police Departments.
Agents from the U.S. Department of State Diplomatic Security Service and Internal Revenue Service-Criminal Investigation also played significant roles in the investigation.

Eight Indicted for Stealing Money from ATMs and Prescription Drugs from Pharmacies

MINNEAPOLIS—A federal indictment unsealed recently charges eight individuals in connection with a string of burglaries during which money was stolen from ATMs and prescription drugs were stolen from pharmacies. The indictment, which was filed under seal on June 10, 2013, was unsealed on June 18, 2013, following the defendants’ initial appearances in federal court. It charges Derek Edward Benedict, age 41, of Hugo; Lyle Robert Carpenter, age 40, of Hastings; Julia Jean Julien, age 35, of St. Cloud; Timothy Michael Kielb, age 45, of Fridley; Cherilyn Ann Mayotte, age 35, currently incarcerated in Superior, Wisconsin; Jason Michael Mussehl, age 42, currently incarcerated at the Stanley Correctional Institution in Stanley, Wisconsin; Jennifer Suzann Stanley, age 37, no known address; and Jonathan Roger Quast, age 28, of Lexington, Minnesota, with one count of conspiracy to commit bank burglary, bank larceny, and interstate transportation of stolen money.
In addition, Benedict, Carpenter, Julien, Kielb, Mayotte, Mussehl, and Quast were charged with one count of conspiracy to steal controlled substances. Carpenter, Kielb, Mussehl, and Stanley were also charged with one count of bank burglary and two counts of bank larceny. Benedict, Carpenter, Julien, Kielb, Mayotte, and Mussehl were also charged with one count of burglary involving controlled substances. Carpenter, Kielb, Mussehl, and Quast were also charged with one count of credit union burglary, one count of bank burglary, and one count of burglary involving controlled substances. Benedict, Carpenter, Julien, and Mussehl were also charged with one count of interstate transportation of stolen property.
More specifically, the indictment alleges that between October 2009 and February 2013, the defendants conspired with each other and others to enter and attempt to enter buildings that operated in whole or in part as banks or credit unions, because they housed ATMs. In addition, it alleges that the defendants conspired to transport stolen merchandise and cash between the states of Minnesota and Wisconsin, and Iowa and Minnesota. The indictment also alleges that Benedict, Carpenter, Julien, Kielb, Mayotte, Mussehl, and Quast conspired with each other and others to steal controlled substances from pharmacies.
In addition to those conspiracy charges, the indictment alleges that Benedict, Carpenter, Mussehl, and Stanley stole money from a Bank of America ATM located inside a Robbinsdale Walgreens store on October 24, 2009, and from a Bank of America ATM located inside a Golden Valley Walgreens on November 29, 2009. The indictment further alleges that on July 15, 2012, Benedict, Carpenter, Julien, Kielb, Mayotte, and Mussehl stole various drugs from the Bloomington Drug Store. In addition, Carpenter, Kielb, Mussehl, and Quast allegedly stole money from a credit union ATM located inside the Dakota Convenience store in Prior Lake on August 19, 2012, and money from a U.S. Bank ATM located inside a Circle Pines Walgreens on August 23, 2012. Carpenter, Kielb, Mussehl, and Quast also stole drugs from the Circle Pines Walgreens pharmacy. On September 9, 2012, Benedict, Carpenter, Julien, and Mussehl allegedly drove from Iowa to Minnesota carrying money stolen from a safe and ATM located inside a Walgreens store in Des Moines, Iowa.
If convicted, the potential maximum penalties are 20 years in prison for conspiracy to commit burglary involving controlled substances, bank burglary, credit union burglary, and burglary involving controlled substances; 10 years for bank larceny and the interstate transportation of stolen property; and five years for conspiracy to commit bank burglary, bank larceny, and interstate transportation of stolen property. If convicted, the defendants’ sentences will be determined by a federal district court judge.
This case is the result of an multi-agency investigation conducted by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Hennepin County Sheriff’s Office, the U.S. Secret Service, the Centennial Lakes Police Department, and the Prior Lake Police Department, with cooperation from the Minnesota Bureau of Criminal Apprehension and the Minnesota Financial Crimes Task Force. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

Arden Hills Man Pleads Guilty to Conspiring to Distribute 11 Pounds of Methamphetamine

MINNEAPOLIS—Earlier today in federal court, a 35-year-old Arden Hills man pleaded guilty to distributing approximately 11 pounds of methamphetamine. Marcelino Garcia pleaded guilty to one count of conspiracy to distribute 500 or more grams of methamphetamine. Garcia, who was indicted on March 20, 2013, entered his plea before United States District Court Judge John R. Tunheim.
In his plea agreement, Garcia, also known as Moreno Marcelino Garcia and Marcelino Garcia-Moreno, admitted that on March 15, 2013, he made arrangements to sell approximately 11 pounds of methamphetamine to an undercover federal agent at a Target parking lot in Shoreview. Garcia also admitted that during the subsequent execution of a search warrant at his residence, authorities seized a 9mm, semi-automatic pistol and five additional pounds of methamphetamine. According to a law enforcement affidavit filed in the case, authorities learned about Garcia during routine narcotics’ investigations in the Twin Cities.
For his crime, Garcia faces a potential maximum penalty of life in prison. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case is being prosecuted by Assistant United States Attorney Julie E. Allyn.

Mexican National Sentenced to More Than 17 Years in Federal Prison for Methamphetamine Trafficking and Firearms Convictions

ALBUQUERQUE—Jesus Omar Lopez-Valle, 28, a Mexican national from Culiacan, Sinaloa, Mexico, was sentenced this morning to 210 months in federal prison, announced U.S. Attorney Kenneth J. Gonzales and Carol K.O. Lee, Special Agent in Charge of the FBI’s Albuquerque Division. Lopez-Valle will be deported after he completes his prison sentence.
Jesus Lopez-Valle; his brother Hector Manuel Lopez-Valle, 24, a Mexican national also from Culiacan, Sinaloa, Mexico; and Adaucto Chavez-Meza, 20, a legal permanent resident from Chihuahua, Mexico, were arrested on criminal complaints in March 2012, after they attempted to sell approximately four pounds of methamphetamine to an undercover officer. At the time, the three men were living in Belen, New Mexico, and the Lopez-Valle brothers were illegally in the United States.
The three men were indicted on March 28, 2012, and charged with conspiracy and possession of methamphetamine with intent to distribute. Jesus Lopez-Valle also was charged with being an illegal alien unlawfully in possession of a firearm. Jesus Lopez-Valle entered a guilty plea to all three charges on March 8, 2013.
According to court filings, on February 21, 2012, Chavez-Meza and the undercover officer discussed the prospect of a methamphetamine deal. Thereafter, on February 23, 2012, Chavez-Meza met the undercover officer at the Sandia Resort and Casino and agreed to sell the officer three pounds of methamphetamine at a price of $14,500 per pound. Chavez-Meza arrived at the meeting site with Jesus Lopez-Valle, who did not participate in the meeting. On March 1, 2013, Chavez-Meza met the undercover officer at a gas station in the vicinity of Montgomery Blvd. NE and Interstate 25 in Albuquerque with the intention of selling four pounds of methamphetamine to the officer. Chavez-Meza arrived in a vehicle driven by Hector Lopez-Valle and Jesus Lopez-Valle arrived at the meeting site in a separate vehicle. After retrieving a package containing methamphetamine from the truck, Chavez-Meza entered the undercover officer’s vehicle, and the officer drove to a nearby apartment complex, followed by Jesus Lopez-Valle and Hector Lopez-Valle. Shortly thereafter, FBI agents arrested Jesus Lopez-Valle, Chavez-Meza, and Hector Lopez-Valle.
On February 25, 2013, Chavez-Meza pleaded guilty to conspiracy and possession of methamphetamine with intent to distribute; he is scheduled for sentencing on July 8, 2013. Hector Lopez-Valle pleaded guilty to the same two charges on March 8, 2013, and is scheduled for sentencing on July 22, 2013. Each faces a mandatory minimum 10 years in prison and a maximum of life in prison. They remain in custody pending their sentencing hearings.
This case was investigated by the Cross Border Drug Violence Squad of the FBI’s Albuquerque Division and the Las Cruces Metro Narcotics Agency, and it is being prosecuted by Assistant U.S. Attorneys Samuel A. Hurtado and Nicholas Jon Ganjei.
The FBI’s Cross Border Drug Violence Squad is a hybrid squad composed of agents with various investigative backgrounds, including narcotics, white-collar, public corruption, and gang expertise, to promote more comprehensive investigations. The FBI created hybrid squads along the Southwest Border that are dedicated to combating Mexican drug cartels and the violent crime threat along the border after Congress passed the Border Security Appropriations Bill in August 2010, which directed and funded the FBI to create these squads. The Albuquerque Division’s Cross Border Violence Squad focuses its investigative efforts on Mexican drug cartels and the major Mexican Drug Trafficking Organizations in New Mexico that support the cartels.

Wilmington Man Sentenced for Heroin Distribution

RALEIGH—United States Attorney Thomas G. Walker announced that in federal court on June 21, 2013, Chief United States District Judge James C. Dever sentenced Terrance Goodman, 23, of Wilmington, North Carolina, to 125 months’ imprisonment (concurrently on each charge), followed by three years’ supervised release.
On March 18, 2013, Goodman pled guilty to conspiracy to possession with the intent to distribute and distribution of a quantity of heroin and four counts of distribution of a quantity of heroin.
During the course of the investigation, the New Hanover County Sheriff’s Office, the Wilmington Police Department, and the Federal Bureau of Investigations Safe Streets Task Force made four undercover purchases of heroin from Goodman between September and December 2012.
The investigation and testimony from the sentencing hearing revealed that Goodman was one of the leaders of a street gang in Wilmington with approximately 40 to 50 members. The gang has been associated with violence and narcotics distributions in the Wilmington, North Carolina area.
This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation entitled WoofPack, investigating importers and multi-level distributors of heroin, cocaine, crack cocaine, and gang activity associated with this distribution. So far, 37 persons have been sentenced in federal court as a part of this operation.
Investigation of this OCDETF case is being conducted by the Federal Bureau of Investigation (Safe Streets Task Force); the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshal Service; the North Carolina State Bureau of Investigation; the Wilmington, Greensboro, and Greenville Police Departments; the New Hanover and Onslow County Sheriff’s Offices; and the Florence County, South Carolina Sheriff’s Office. Special Assistant United States Attorney Timothy Severo represents the government. Mr. Severo is a prosecutor with the New Hanover County District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.

Hells Angels Members and Associates Convicted and Sentenced After Joint Investigation Uncovers Racketeering Conspiracy Dealing in Guns, Drugs, Armed Robbery, Arson, and Money Laundering

COLUMBIA, SC—As part of a cooperative federal, state, and local investigation, 16 members and associates of the Hells Angels were convicted in federal court of crimes related to a racketeering conspiracy (Racketeer Influenced and Corrupt Organizations Act, also known as RICO Act, 18 U.S.C. §1962). Today, three full-patch members of the Hells Angels—Hells Angels Charter President Mark “Lightning” Baker, as well as “Gravel” Dave Oiler and Bruce “Bruce-Bruce” Long—were sentenced after having been convicted by a jury of racketeering conspiracy, drug trafficking, money laundering, and firearm offenses. United States District Judge Cameron Currie sentenced Baker to 188 months, Oiler to 200 months, and Long to 168 months. Previously, 12 other members and associates of the Hells Angels were sentenced after having pleaded guilty. One defendant, Carlos Hernandez, remains to be sentenced. United States Attorney Bill Nettles said, “We are pleased to partner with federal, state, and local law enforcement in response to community concerns about outlaw motorcycle gangs. Removing machine-guns, silencers, assault rifles, other illegal firearms, and drugs from our streets while disrupting the trafficking activities of violent gangs, such as the Hells Angels, is and will remain a priority of the United States Attorney’s Office.”
Members and associates of the Hells Angels South Carolina Nomads Charter operated from Lexington to Rock Hill, South Carolina. As part of the coordinated criminal activity, the group engaged in drug dealing, money laundering, firearms trafficking, use of firearms in relation to crimes of violence and drug dealing, attempted armed robbery, arson, and other offenses. The Hells Angels’ leadership coordinated the criminal activity and received kickbacks or cuts of the illicit proceeds generated by members and associates of the Hells Angels. During the investigation, the gang’s leadership transitioned from long-time Hells Angels member “Diamond” Dan Bifield to recent inductee Mark “Lightning” Baker after the charter’s members voted Bifield out as president. Throughout, as Baker and Bifield explained in recorded conversations, members of the Hells Angels were to pay a cut of their profits from illegal activity to the Hells Angels and its leadership.
Though professing to live outside the structure of society’s laws as so-called “outlaws” or “one-percenters” (denoting that they are the one percent that refuses to abide by the law), the investigation showed the Hells Angels to have a highly organized hierarchical chain of command governed by extensive written rules. Membership, which is limited to white males that own an American-made motorcycle, requires more than a year of association with the gang. Only full members may wear the three-piece patch with the winged death head that has become synonymous with the Hells Angels.
The investigation revealed that the Hells Angels trafficked in a wide-array of firearms, knowing that the weapons were being sold to known felons for use in armed robberies of other drug dealers. In excess of one hundred guns were trafficked by the group (including by Bifield, Long, Pryor, Keach, and others) and recovered during the execution of search warrants, including fully automatic machine-guns, silencers, assault rifles with high-capacity magazines, pistols, and sawed-off shotguns.
Members of the organization not only supplied weapons, they also supplied methamphetamine (known as “biker’s coffee”) and cocaine, along with bath salts and prescription pain pills. The evidence showed that the defendants were responsible for more than five pounds of methamphetamine and multiple kilograms of cocaine. For example, Baker and Oiler obtained for re-distribution pounds of high-quality methamphetamine from Kerry Chitwood, a member of the Gastonia, North Carolina-based Southern Gentlemen Motorcycle Club. During their drug trafficking activities, club members traded on the Hells Angels’ infamous reputation to instill fear and obtain the drugs they wanted. Similarly, Bifield and Long distributed more than a kilogram of cocaine and bath salts obtained from a variety of sources. Other members of this drug conspiracy (including “Big” Frank Enriquez and Baker) trafficked in prescription pain pills.
“The Hells Angels are one of the most notorious biker gangs in the United States,” FBI Special Agent in Charge David A. Thomas explained. “Working with our federal, state, and local partners, we are committed to using our resources on the most significant problems facing our state. These convictions send a strong message that the coordinated efforts of law enforcement can disrupt, and hopefully dismantle, organized gang activity.”
After a month-long trial, a federal jury convicted Baker of racketeering conspiracy, narcotics conspiracy, and money laundering; Oiler of racketeering conspiracy, narcotics conspiracy, various counts of narcotics distribution and attempted distribution, money laundering, possession of a firearm in furtherance of drug trafficking and a crime of violence, and illegal possession of a machine-gun and silencer; and Long of racketeering conspiracy, narcotics conspiracy, various counts of narcotics distribution and attempted distribution, money laundering, and sale of firearms for use in drug trafficking and a crime of violence. These three received sentences ranging from 14 years to over 16 years.
Previously, six defendants pleaded guilty to a racketeering conspiracy and were sentenced by the court: “Diamond” Dan Bifield (210 months), David “Yard Owl” Pryor (84 months), Richard “Little Mark” Thrower (27 months), “Big” Frank Enriquez (24 months), Fred Keach (10 months), and Johanna Looper (15 months). Three defendants pleaded guilty to a narcotics conspiracy and were sentenced by the court: Kerry “Gowilla” Chitwood (240 months), “Big” Ron Byrum (51 months), and Trent Brown (24 months). Lisa Bifield pleaded guilty to possession of a firearm in furtherance of drug trafficking and a crime of violence and was sentenced to 84 months in prison. James “Sonny” Rhodus pleaded guilty to money laundering, receiving five years of probation, while Bruce “Diesel” Wilson pleaded guilty to selling a firearm to a known felon and received 18 months in federal prison.
“ATF will continue to work in conjunction with other law enforcement agencies to identify organized violent criminals in our joint effort to protect the public,” said ATF Charlotte Division Special Agent in Charge Wayne Dixie, “The sentencing of members and associates of the Hells Angels Motorcycle Club in federal court should send a loud and clear message to anyone who chooses to engage in this type of criminal activity; it cannot and will not be tolerated and you will be held accountable.”
This multi-agency investigation led by FBI Special Agent Devon Mahoney began in response to community concerns about the infiltration of the Rock Hill community by outlaw motorcycle gangs and the brewing violence developing between members of rival outlaw motorcycle gangs. Ultimately, the investigation—through cooperating individuals, surveillance, search warrants, court‑authorized wiretaps, consensual recordings, controlled buys, stings, and other investigative techniques—provided a window into the Hells Angels’ criminal activities that led to these arrests and convictions. This investigative partnership—the South Carolina Hells Angels Task Force—included officers and agents of the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Lexington Police Department; Lexington County Sheriff’s Department; York County Sheriff’s Department; Rock Hill Police Department; and the South Carolina State Law Enforcement Division (SLED). The case was prosecuted by Assistant United States Attorneys Jay Richardson and Jim May.