Month: August 2022

Source: United States Department of Justice Criminal Division

A former governor of Puerto Rico was arrested today on bribery charges related to the financing of her 2020 campaign.

Relatedly, a political consultant for the former governor and the president of the international bank have also pleaded guilty to participating in the bribery scheme.

“The alleged bribery scheme rose to the highest levels of the Puerto Rican government, threatening public trust in our electoral processes and institutions of governance,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.  “The Department of Justice is committed to holding accountable those who wrongly believe there is one rule of law for the powerful and another for the powerless.  No one is above the rule of law.”

According to the indictment, from December 2019 through June 2020, then-Governor of Puerto Rico Wanda Vazquez Garced, 62, of San Juan, allegedly engaged in a bribery scheme with various individuals, including Julio Martin Herrera Velutini, Frances Diaz, Mark Rossini, and John Blakeman to finance Vazquez Garced’s 2020 gubernatorial election campaign.

“The criminal actions of the defendants in this case strike a blow to the heart of our democracy and further erode the confidence of our citizens in their institutions of governance,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “Our resolve to bring to justice those entrusted by the public to serve with integrity and who violate that trust remains steadfast. Equally steadfast is our resolve to prosecute those who seek to use their wealth and power to enrich themselves at the expense of honest government. I commend the dedication and hard work of the law enforcement personnel and prosecutors in this case, as well as those individuals willing to come forward and cooperate.”

Herrera Velutini, 50, a dual Venezuelan-Italian citizen residing in London, United Kingdom, owned an international bank operating in San Juan. Diaz, 50, of Puerto Rico was the CEO and President of the international bank owned by Herrera Velutini. Rossini, 60, of Madrid, Spain was a former FBI Special Agent who provided consulting services to Herrera Velutini. Blakeman, 53, of Puerto Rico, is a political consultant who worked on Vazquez Garced’s 2020 campaign.

“Public corruption manifests in many different ways,” said Special Agent in Charge Joseph González of the FBI San Juan Field Office. “Those who engage in this illegal conduct often believe they are above the law or fool themselves into believing this is a victimless crime and thus are not doing anything wrong. Our message is and has been clear. Public corruption erodes the people’s trust in our institutions and fuels civil unrest. As a top priority for the FBI, wherever allegations of public corruption arise, we will investigate. No one is above the law and the victim of this crime, the People, deserve better.”

According to the indictment, beginning in 2019, Herrera Velutini’s bank was the subject of an examination by Puerto Rico’s Office of the Commissioner of Financial Institutions (OCIF), a regulatory agency that oversees financial institutions operating in Puerto Rico. Through intermediaries, Herrera Velutini and Rossini allegedly promised to provide funding to support Vazquez Garced’s 2020 gubernatorial election campaign in exchange for Vazquez Garced terminating the Commissioner of OCIF and appointing a new Commissioner of Herrera Velutini’s choosing. The indictment alleges that Vazquez Garced accepted the offer of a bribe and, in February 2020, took official action to demand the resignation of OCIF Commissioner A and, in May 2020, to appoint OCIF Commissioner B – a former consultant for the international bank owned by Herrera Velutini – who had been personally selected by Herrera Velutini. In return, Herrera Velutini and Rossini allegedly paid more than $300,000 to political consultants in support of Vazquez Garced’s campaign.

The indictment further alleges that following Vazquez Garced’s primary election loss in August 2020, Herrera Velutini sought to bribe her successor, Public Official A, by offering funding in support of Public Official A’s campaign in exchange for Public Official A ending OCIF’s audit of Herrera Velutini’s bank on terms favorable to Herrera Velutini. According to the indictment, between April 2021 and August 2021, Herrera Velutini allegedly used intermediaries to convey his offer of a bribe to a witness who held himself out as a representative of Public Official A, but who was in fact acting at the direction of the FBI. As noted in the indictment, the witness was acting at the direction of the FBI during this timeframe and not actually serving as an intermediary of, or acting on behalf of, Public Official A. In August 2021, Herrera Velutini allegedly directed a $25,000 payment to a political action committee associated with Public Official A, with the understanding and expectation that Public Official A would resolve OCIF’s audit of Herrera Velutini’s bank in the manner requested by Herrera Velutini.

Vazquez Garced, Herrera Velutini, and Rossini are each charged with conspiracy, federal programs bribery, and honest services wire fraud. Vazquez Garced is scheduled to make her initial court appearance today in federal court in the District of Puerto Rico. If convicted on all counts, they each face a maximum total penalty of 20 years in prison.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Relatedly, the department also announced the guilty pleas of two individuals in connection with the schemes to bribe Vazquez Garced and Public Official A.

According to court documents, in March, Frances Diaz pleaded guilty to conspiring with Herrera Velutini and others to bribe Public Official A. Diaz was, until February 2022, the CEO and President of the international bank owned by Herrera Velutini. In March, John Blakeman pleaded guilty to conspiring with Herrera Velutini and Rossini to bribe Vazquez Garced, and with Herrera Velutini to bribe Public Official A.

Both Diaz and Blakeman face up to five years in prison. Their sentencing hearings have not yet been scheduled. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph Gonzalez of the FBI’s San Juan Field Office made the announcement. 

The FBI’s San Juan Field Office is investigating the case.

Trial Attorneys Ryan R. Crosswell, Erica O. Waymack, and Nicholas W. Cannon of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe of the U.S. Attorney’s Office for the District of Puerto Rico are prosecuting the case. Members of the Justice Department’s Money Laundering and Asset Recovery Section also provided assistance with the investigation, including Trial Attorneys Margaret Leigh Kessler and D. Zachary Adams, and Bank Integrity Unit Acting Chief Molly Moeser.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice News

COLUMBUS, Ohio – William J. Dishman, 40, of Cincinnati, was sentenced in U.S. District Court to 60 months total in prison for possessing multiple firearms as a convicted felon and violating his supervised release.

According to court documents, in August 2021, Dishman was arrested by the U.S. Marshals Service’s Southern Ohio Fugitive Apprehension Strike Team (SOFAST).

Dishman had previously been convicted of burglary of a pharmacy and conspiracy to possess with intent to distribute controlled substances in the Western District of Pennsylvania. Following his release from prison, Dishman was placed on supervised release. An arrest warrant was issued in the Southern District of Ohio after reports of Dishman violating his supervised release.

On Aug. 6, 2021, SOFAST members executed a search warrant at the property of Dishman’s wife in Cincinnati. Dishman’s wife said she had not seen Dishman for more than a month but allowed agents to search the apartment. In truth, Dishman was hiding in a wooden box underneath a furnace located in one of the bedroom closets. SOFAST members found and apprehended Dishman without incident.

While searching the apartment, agents discovered an assault rifle with an extended magazine and four pistols. One of the pistols was stuffed into a couch where a child was resting.

“The risk of danger to the officers who were executing Dishman’s arrest warrant is not hypothetical,” said U.S. Attorney Kenneth L. Parker. “They were potentially being lured into an ambush inside while Dishman hid. It is even more egregious that this occurred in the same apartment in which a child was sleeping. Within months of Dishman’s arrest, another deputy marshal was shot and wounded while executing a warrant under nearly identical circumstances.”

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Acting United States Marshal Bradley Stuart announced the sentence imposed by U.S. District Court Judge Sarah D. Morrison. Assistant United States Attorney Noah R. Litton is representing the United States in this case.

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Source: United States Department of Justice News

KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy that converted large amounts of liquid methamphetamine into crystal methamphetamine at a rented house near George Melcher Elementary School in Kansas City, Mo.

Ruben Ortiz-Vieyra, 43, a lawful permanent resident of the United States from Mexico, was sentenced by U.S. District Judge Stephen R. Bough on Wednesday, Aug. 3, to 10 years in federal prison without parole. The court also ordered Ortiz-Vieyra to forfeit to the government $1,020,000, which was received for the unlawful distribution of methamphetamine, based on a sale price of $600 per ounce and the distribution of 1,800 ounces (112.5 pounds) of methamphetamine. The court ordered Ortiz-Vieyra to spend 10 years on supervised release following incarceration.

On Jan. 12, 2022, Ortiz-Vieyra pleaded guilty to participating in a conspiracy to distribute methamphetamine within 1,000 feet of a school from Jan. 1, 2014, to May 18, 2018. Co-defendants Jose Vieyra-Lopez, 37, a citizen of Mexico; Megan Eubanks, 40, of Kansas City, Mo., and Victor Suarez-Gallardo, 34, of Kansas, have also pleaded guilty and await sentencing.

In addition to the drug-trafficking conspiracy, Ortiz-Vieyra, Vieyra-Lopez and Suarez-Gallardo each pleaded guilty to one count of aiding and abetting the manufacture and distribution of methamphetamine within 1,000 feet of a school. Ortiz-Vieyra, Suarez-Gallardo and Eubanks each also pleaded guilty to one count of possessing or using firearms with drug trafficking. Ortiz-Vieyra also pleaded guilty to one count of conspiracy to possess or use firearms with drug trafficking.

Ortiz-Vieyra supplied methamphetamine to Eubanks. Vieyra-Lopez was the drug runner for Ortiz-Vieyra.

On April 26, 2018, a confidential informant purchased one-half pound of methamphetamine from Eubanks for $3,000 in a transaction that involved Ortiz-Vieyra. On May 2, 2018, the confidential informant purchased one pound of methamphetamine from Eubanks for $5,000. Ortiz-Vieyra was also involved in the transaction. On May 8, 2018, the confidential informant purchased one-half pound of methamphetamine. Ortiz-Vieyra and Vieyra-Lopez were involved in the transaction.

On May 15, 2018, law enforcement officers executed a search warrant at Eubanks’s residence. Officers seized methamphetamine, marijuana, a Ruger .380-caliber pistol, a box of ammunition, a counterfeit $100 bill, and drug paraphernalia.

On May 17, 2018, law enforcement officers executed a search warrant at a Kansas City, Mo., residence controlled by Ortiz-Vieyra and Suarez-Gallardo. There were no furniture or other items inside the residence to make it appear occupied. Instead, officers found a black cooking stand that had a pan sitting on top that contained liquid methamphetamine. The residence is approximately 484 feet from George Melcher Elementary School.

Ortiz-Vieyra rented houses where liquid methamphetamine was converted into a crystallized form of methamphetamine for sale, including approximately five pounds of methamphetamine approximately one week before his arrest on May 17, 2018. Ortiz-Vieyra sold methamphetamine to Eubanks and others. The next day Suarez-Gallardo, who had also been observed at the residence where methamphetamine was being converted, was arrested. Officers found acetone and a Berretta .45-caliber firearm at his residence. Suarez-Gallardo distributed 10 to 15 pounds of methamphetamine from the conversion lab.

This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Robert Smith. It was investigated by the Jackson County Drug Task Force and the Drug Enforcement Administration.

Organized Crime Drug Enforcement Task Force

This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Source: United States Department of Justice News

BIRMINGHAM, Ala. – A Birmingham man was sentenced yesterday on charges of Conspiracy to Distribute Methamphetamine, Distribution of Methamphetamine, and Possession with the Intent to Distribute Heroin announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.

Horace Dantai Burgess, Jr., 26, was sentenced yesterday on charges of Conspiracy to Distribute Methamphetamine, two counts of Distribution of Methamphetamine, and one count of Possession with the Intent to Distribute Heroin.  Burgess was sentenced by U.S. District Judge Madeline H. Haikala to 70 months of imprisonment followed by 60 months of supervised release.

Burgess sold methamphetamine to law enforcement on multiple occasions.  In addition, in August 2021, Jefferson County Sheriff’s Deputies attempted to conduct a traffic stop of a vehicle driven by Burgess.  Burgess refused to stop, and a high-speed chase ensued.  During the chase, Burgess threw a bag containing a significant amount of heroin out of the window.  Burgess is linked to the Hard 2 Kill gang.  Agents of the Federal Bureau of Investigation (FBI) investigated the Hard 2 Kill gang, better known as H2K. This gang operates in the Birmingham, Alabama area and is known to be involved in acts of violence, illegal drug distribution, and illegal firearm possession.

“Violent street gangs often fund their illegal activities by trafficking illegal drugs,” said U.S. Attorney Escalona. “By focusing drug enforcement efforts on gang-related dealers, our law enforcement partners can reduce both the violence and the drugs that plague our communities. We are grateful for the efforts of the Birmingham Police Department, Jefferson County Sheriff’s Office, and FBI in taking another dealer off the street.”

“As a result of this case, the streets of Birmingham are a little safer and yesterday’s sentence should send a message that violent actors will be held accountable for their criminal acts.  The FBI is committed to the fight against violent crime, and we will continue to work side by side with our state, local, and federal partners to bring criminals like Burgess to justice,” said FBI SAC Johnnie Sharp, Jr.

The case is a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 

FBI investigated the case along with the Birmingham Police Department, and the Jefferson County Sheriff’s Office. Assistant United States Attorneys Darius Greene and Kristy Peoples prosecuted the case.