Month: August 2022

Source: United States Department of Justice News

BOSTON – A Boston area drug trafficker was sentenced on July 28, 2022 in federal court in Boston for his role in a cocaine trafficking conspiracy.

Hassan Monroe, 38, of Quincy, was sentenced by U.S. District Court Judge Richard G. Stearns to six years in prison and four years of supervised release. On Feb. 17, 2022, Monroe pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine and cocaine base and one count of being a felon in possession of a firearm and ammunition. Monroe purchased and distributed wholesale quantities of cocaine and is estimated to have distributed over one kilogram of cocaine and 200 grams of cocaine base

In June 2020, Monroe was charged along with 23 others as part of Operation Snowfall.  According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged, and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.

The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Monroe is the ninth defendant to plead guilty in the large-scale conspiracy case.

Monroe was a significant drug supplier and distributor within the drug conspiracy.. Law enforcement intercepted numerous calls in which Monroe negotiated drug deals, coordinated drug meetups, and finalized drug pricing using brief, guarded and drug-coded language. Following the calls, Monroe was subsequently observed meeting with co-conspirators at agreed upon locations in a manner consistent with drug-trafficking activity. Additionally, intercepted communications between Monroe and co-conspirators also showed him plotting violence or discussing the importance of having firearms for protection.

During the investigation, a search of a “stash house” associated with Monroe recovered over 400 grams of cocaine, six firearms and multiple rounds of ammunition. Additionally, 250 grams of cocaine and a loaded firearm were recovered from Monroe’s car and a subsequent search of Monroe’s residence resulted in the recovery of cocaine and two loaded firearms.

First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (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.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice News

Spokane – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Philip Marion Harthill, age 74, of Rosalia, Washington, was sentenced in federal court in Spokane for Coercion and Enticement of a Minor. United States Senior District Judge Rosanna Malouf Peterson sentenced Harthill to 120 months to be followed by a life term of supervised release. In announcing the sentence, Judge Peterson emphasized that “the damage to children” caused by Harthill’s crimes is very “real.” Judge Peterson continued, “This is damage they will carry with them for their whole lives – damage to both the children and the families, who are impacted.” Judge Peterson further expressed that a 10-year sentence was necessary notwithstanding Harthill’s age. Harthill had entered a guilty plea on April 19, 2022.

According to court documents, Homeland Security Investigations (HSI) discovered in early 2019 that Harthill was transmitting child pornography online through Skype. Later that year, Harthill began an online chat via social media sites regarding Harthill’s sexual interest in minor children, particularly girls, who were ten-years old and older. During these communications, Harthill used the Kik Messenger to send at least two images containing child pornography. Harthill also used Kik to solicit additional child pornography.

Based on Harthill’s transmittal and solicitation of child pornography, Federal agents executed a search warrant at Harthill’s residence and seized several electronic devices, including Harthill’s laptop computer. On the laptop, investigators discovered 1,455 videos and 531 images of child pornography, including a split-screen video of Harthill sexually interacting with a young child, who stated she was nine years old and lives in another country.

During the investigation, Harthill agreed to speak with law enforcement and admitted to downloading, trading, and viewing child pornography for about five years. Harthill further admitted to sexually communicating online with underage girls, who were between 12 to 15 years old. In his statement, Harthill also admitted he would sometimes falsely portray himself as being 19 years old to his victims.

“This case is a stark reminder that sexual predators do not always fit a specific profile and, in some cases, may be the person you least suspect,” United States Attorney Waldref said. “Mr. Harthill used everyday internet applications like Skype and Kik to exploit the most vulnerable among us.” U.S. Attorney Waldref continued, “Today’s sentence is necessary to prevent Mr. Harthill from harming other children, and it should serve as a warning to those who victimize children: Our office is committed to prioritizing and aggressively pursuing cases involving online predators and holding them accountable for victimizing the most innocent members of our community.”

“Harthill exploited children by sharing their images with other child pornographers around the world,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The resolve of HSI agents working both in the U.S. and overseas has resulted in a sentence that will hopefully provide some ease to those affected by his horrendous actions and keep Harthill behind bars, not behind a computer.”

This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:

· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;

· Participation of PSC partners in coordinated national initiatives;

· Increased federal enforcement in child pornography and enticement cases;

· Training of federal, state, and local law enforcement agents; and

· Community awareness and educational programs.

For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

This case was investigated by the Spokane Resident Office of the United States Department of Homeland Security and the Washington State Police. This case was prosecuted by Ann T. Wick, Assistant United States Attorneys for the Eastern District of Washington.

Source: United States Department of Justice News

The Office of the United States Attorney for the District of Vermont stated that Marco Salvedra-Espinoza (also known as Marco Saavedra Espinosa), 42, of the Bronx, New York, appeared today in federal court on a charge alleging that, on or about July 27, 2022, he unlawfully transported individuals he knew to have entered the United States illegally. Upon the motion of the United States, U.S. Magistrate Judge Kevin J. Doyle ordered Salvedra-Espinoza detained pending further proceedings in the case.  

According to public documents in the case, on the night of July 27, 2022, an agent with the United States Border Patrol was patrolling an area of the international border with Canada and stopped a vehicle registered to a rental company with Virginia-based plates. The driver, Salvedra-Espinoza, claimed he was in the area to pick up friends. Further investigation showed that Salvedra-Espinoza is a Mexican national who had been previously removed from the United States and that he did not have current legal status in the United States. The two back-seat passengers were also identified as Mexican citizens, and they ultimately admitted they had just entered the United States illegally from Canada after paying thousands of dollars to be smuggled into the country. The passengers have been charged with illegal entry into the United States, a misdemeanor, in a related case.

The U.S. Attorney’s Office notes that a criminal complaint is an accusation only and that the defendant is presumed innocent until and unless proven guilty. As currently charged, Salvedra-Espinoza would face up to 5 years of imprisonment if convicted. Any sentence in the case will be advised by the United States Sentencing Guidelines. 

U.S. Attorney Nikolas Kerest credited the agents of the United States Border Patrol for their investigation of Salvedra-Espinoza and their continued efforts to prevent the exploitation of foreign nationals by human-smuggling organizations. 

Assistant U.S. Attorney Matthew Lasher represents the United States in this case. Salvedra-Espinoza is represented by Kevin Henry, Esq.

Source: United States Department of Justice News

Former Westlake Investment Advisor Raymond A. Erker, 50, of Avon, Ohio, was sentenced today by U.S. District Judge Dan Polster to nearly 22 years in prison, or 262 months, following his conviction at trial of stealing more than $9.3 million from clients in a Ponzi scheme.  A restitution hearing concerning this matter was scheduled for December 9, 2022.

“Mr. Erker misled, cheated and conned over fifty victims, many of them elderly, into trusting him with their life savings and hard-earned retirement funds, all for guaranteed rates of return and low-risk investments that were fabricated,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Instead, Erker squandered the money he was entrusted with and caused financial ruin and pain for many.  Now, thanks to the work of law enforcement, Mr. Erker must repay his debt to these victims and our community.” 

“It can be risky to invest in start-up companies through private investment offerings,” said Ohio Securities Commissioner Andrea Seidt.  “Investors need to ask lots of questions and do extra research, even seek input from a licensed investment professional.  Investors can call our Investor Protection Hotline at 877-683-7841 to find out if the person is licensed to sell securities and if the product is properly registered.”

According to court documents and evidence presented at trial, from January 2013 through July 2018, Erker and codefendants Kevin M. Krantz and Tara M. Brunst conspired together to devise a scheme that stole $9,366,976.37 from at least fifty-four investors. 

As part of the scheme, Erker sold investments to clients that he misrepresented as annuities and senior secured notes with no risk of loss and with a guaranteed rate of return.  Court documents state that Erker and the co-conspirators, without the approval or consent of investors, diverted funds to other entities that they controlled and their personal bank accounts. 

Additionally, Erker failed to disclose to clients that he maintained ownership interests in companies receiving investments from the scheme.  To keep up with promised rates of return, Erker falsely represented that payments to previous investors were rates of return and interest when, in actuality, these payments were new investor funds, the defining characteristic of a Ponzi scheme.

To avoid detection, Erker and his codefendants set up office fronts in Delaware and Nevada, contracted with call centers and created false websites and account statements that purported to show investor account balances.

Erker was also convicted of making a false statement under oath.  On October 9, 2019, while under oath in the United States Bankruptcy Court for the Northern District of Ohio, Erker stated that he disclosed to investors that he owned the companies the investors gave him money to invest in, when in fact, Erker knew that statement to be false.

Krantz and Brunst were previously sentenced for their roles in the scheme.

This investigation was conducted by the Ohio Department of Commerce Division of Securities, the United States Postal Inspection Service (USPIS) and the Westlake Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Brian McDonough and Kathryn Andrachik.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. 

Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals on a case-by-case basis. 

Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.

###

Source: United States Department of Justice News

MINNEAPOLIS – A federal grand jury returned an indictment against a Ramsey man for an armed carjacking and possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.

According to court documents, on June 4, 2022, Joshua Gunnar Olson, 31, armed with a Glock 19 9mm handgun, used force, violence, and intimidation to steal a black 2011 Dodge Grand Caravan from the vehicle’s owner. Olson has multiple prior felony convictions in Cass, Crow Wing, and Aitkin Counties and is therefore prohibited from possessing firearms or ammunition at any time.

Olson is charged with one count of carjacking, one count of possessing a firearm as a felon, and one count of brandishing a firearm during and in relation to a crime of violence. He made his initial appearance in U.S. District Court on August 1, 2022, before Magistrate Judge John Docherty.

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota State Patrol, the Anoka Police Department, the Ramsey Police Department, the Elk River Police Department, the Champlin Police Department, the Ramsey County Sheriff’s Office, and the Anoka County Sheriff’s Office.

Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.