Month: August 2022

Source: United States Department of Justice News

GREENEVILLE, Tenn. – On August 8, 2022, Charles Elsea, Jr., 44, a longtime inmate of the Tennessee Department of Corrections, was sentenced to life in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.

Following a six-day jury trial in March 2022, Elsea was convicted by a jury of Conspiracy to Distribute 50 Grams or More of Actual Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(A); Conspiracy to Distribute Marijuana, 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C); Conspiracy to Commit Money Laundering 18 U.S.C. § 1956(a)(1)(A)(i).

During sentencing, Judge Greer found that Elsea was responsible for distributing over 56.8 kilograms of methamphetamine.  Elsea was ordered to forfeit $1,263,490.00, which represented the illegal proceeds from distributing methamphetamine and money laundering.

According to court documents and evidence presented at trial, Elsea was serving a prison sentence for First Degree Murder for a 1996 homicide in Hamilton County, Tennessee when he rose through the ranks to become the State President of the Brotherhood Forever, a Tennessee based prison gang.  Elsea led the drug trafficking organization from behind prison walls using smuggled cellphones to conduct his business on the outside.  Elsea orchestrated multi-kilo methamphetamine deals that involved methamphetamine being transported from California and Arizona to Tennessee.  Elsea and his coconspirators used the drug proceeds from the methamphetamine sales to create marijuana grow houses in and out of Tennessee.  Elsea was also involved in starting two marijuana grow operations during the pendency of this case, utilizing the jail’s video system to speak to coconspirators about the cultivation of marijuana.

The case was the result of a five-year investigation that began in the spring of 2017 by the Department of Homeland Security – Homeland Security Investigations (“DHS-HSI”), the Drug Enforcement Administration (“DEA”), and the United States Postal Inspection Service (“USPIS”).  Other agencies involved with the investigation included the Tennessee Department of Correction Office of Investigations and Conduct; the Elizabethton and Carter County Joint Drug Task Force; the Huron Undercover Narcotic Team with the Michigan State Police; the Arkansas Highway Patrol; the Missouri Western Interdiction Task Force with the Kansas City, Missouri Police Department; and the California Visalia Police Department.  This investigation was led by HSI Special Agent John Bulla.

Assistant U.S. Attorneys Meghan L. Gomez and J. Christian Lampe represented the United States at sentencing.

This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

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Source: United States Department of Justice News

BROWNSVILLE, Texas – A 27-year-old man has pleaded guilty to illegally possessing numerous firearms, announced U.S. Attorney Jennifer B. Lowery.

Marco Antonio Moreno pleaded guilty to unlawfully possessing four semiautomatic rifles and five pistols while under felony indictment.

On May 8, 2021, law enforcement responded to reports of shots fired at a residence located in San Benito. Upon arrival, they encountered Moreno who denied discharging a firearm. He claimed unknown individuals had entered his property and shot a gun.

However, they observed spent shell casings in the area and asked Moreno if he owned any firearms. He said he did not and granted consent to search his residence.

After entering the residence, authorities discovered various amounts of illegal narcotics as well as numerous firearms, including three AR-15 style semiautomatic rifles, one AK-47 style semiautomatic pistol, one .45-caliber rifle and four handguns. They also found over 450 rounds of ammunition of various calibers.

At that time, Moreno was under indictment for charges of unlawful use of a criminal instrument. He was, therefore, prohibited from possessing any firearms or ammunition.

U.S. District Judge Fernando Rodriguez Jr. will impose sentencing Nov. 15. At that time, Moreno faces up to five years in federal prison and a possible $250,000 maximum fine.

He will remain in custody pending that hearing.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Brownsville Police Department and Cameron County Sheriff’s Office. Assistant U.S. Attorney Edgardo J. Rodriguez is prosecuting the case.

Source: United States Department of Justice News

HOUSTON – A 31-year-old Cuban citizen who resided in Houston has been sentenced for his role as leader of an organization that installed hundreds of credit card skimmers in Southeast Texas over the last six years, announced U.S. Attorney Jennifer B. Lowery.

Durlan Garica-Pupo pleaded guilty May 18, 2021, to one count of conspiracy to commit fraud in connection with access devices and one count of aggravated identity theft. 

Today, U.S. District Judge Lee Rosenthal sentenced Durlan Garcia-Pupo to 60 months in prison for the conspiracy. He also must serve 24 months for the aggravated identity theft which must be served consecutively for a total 84-month prison term. In handing down the sentence, Judge Rosenthal noted Garcia-Pupo’s leadership role in the scheme, sophistication of the scheme and the volume of stolen personal information involved. Garcia-Pupo is expected to face removal proceedings following his incarceration.       

From 2017 through 2019, Garcia-Pupo directed other members of the scheme to install credit card skimmers at gas station pumps located around Harris and Montgomery counties to steal personal and banking information. Garcia-Pupo also used at least one of those stolen identities himself to purchase fuel.   

Authorities executed a search at his residence and found a laptop computer filled with up to 1500 stolen credit card numbers as well as materials to make credit card skimmers. Garcia-Pupo and his co-defendants would either sell the stolen information to other criminals or use the information to buy fuel that was then resold at much lower prices to generate cash.    

Two others – Lazaro Martinez-Garcia, 36, Houston, and Julio Cesar Blanco-Diaz, 41, Houston, were previously sentenced to 33 and 24 months, respectively.

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

The Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Thomas H. Carter prosecuted the case.

Source: United States Department of Justice News

NEWARK, N.J. – A co-owner of multiple businesses today admitted to his role failing to pay over $1 million in payroll taxes for his companies, U.S. Attorney Philip R. Sellinger announced.

Omar Mostafa, 57, of New Jersey, pleaded guilty before U.S. District Judge Georgette Castner to an information charging him with willful failure to collect or pay taxes.

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

From 2016 through 2018, Mostafa co-owned three companies that operated in New Jersey and New York and was responsible for signing and causing to be filed the companies’ tax returns with the IRS. During those tax years, Mostafa substantially underreported each company’s payroll, causing a total tax loss to the IRS of approximately $1.4 million. 

The count of failing to collect, account for, and pay employment taxes is punishable by a maximum penalty of five years in prison and a maximum $10,000 fine. Sentencing is scheduled for Dec. 12, 2022.

U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Source: United States Department of Justice News

NEWARK, N.J. – Two Florida men were charged with conspiring to launder money taken from victims across the United States, many of whom were elderly, as a part of a series of  romance scams and other internet fraud, U.S. Attorney Philip R. Sellinger announced today.

Marlin Perra, 63, of Lake Panasoffkee, Florida, and Leslie Lallande, 65, of Pompano Beach, Florida, were both arrested in Florida and are charged by complaint with one count of money laundering conspiracy. Both defendants are expected to have their initial appearances in the District of New Jersey at a date to be determined.

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

Perra and Lallande laundered the proceeds of romance scams and other fraud scams through trade-based money laundering. Perra and Lallande tried to conceal the fraudulent proceeds stolen from romance scam victims by claiming that entities they controlled were in the business of buying and shipping used cars. Lallande and his conspirators prepared and executed fraudulent agreements that purported to be signed by victims agreeing to invest in Lallande’s alleged automobile business. In fact, these agreements were phony cover stories designed to paper over their receipt and movement of the romance scam proceeds.

The money laundering conspiracy charge has a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the funds involved in the transfer, whichever is greater.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, Special Agent in Charge Gregory D. Nelsen in Cleveland, Ohio, and Special Agent in Charge Joseph E. Carrico in Knoxville, Tennessee, with the investigation leading to the arrests. He also thanked special agents of the FBI in Miami, Florida, for their assistance.

The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.

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