Month: August 2022

Source: United States Department of Justice News

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation. Boston Division, today announced the unsealing of a nine-count indictment that charges five men with federal offenses related to their participation in a stolen catalytic converter trafficking ring.

The indictment, which was returned by a federal grand jury in New Haven on August 16, charges ALEXANDER KOLITSAS, 28, of Wolcott; BRYANT BERMUDEZ, 31, of East Hartford; ROBERTO ALICEA, 30, of New Britain; FRANCISCO AYALA, 22, of Ansonia; and THEODORE ROOSEVELT OWENS, 21, of Hartford.

As alleged in court documents and statements made in court, law enforcement has been investigating the theft of catalytic converters from motor vehicles across Connecticut.  A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a desirable target for thieves.  The average scrap price for catalytic converters currently varies between $300 and $1,500, depending on the model and type of precious metal component.

The indictment alleges that Kolitsas owned and operated Downpipe Depot & Recycling LLC (“Downpipe Depot”), which had a warehouse on Park Avenue in East Hartford.  Bermudez started working with Kolitsas at Downpipe Depot in November 2021.  At Downpipe Depot, Kolitsas and Bermudez purchased stolen catalytic converters from a network of thieves, including Alicea, Ayala and Owens.  Kolitsas and Bermudez instructed their suppliers on the types of catalytic converters that would obtain the most profit upon resale.  Kolitsas and Bermudez then transported and sold the catalytic converters to recycling businesses in New York and New Jersey.

The indictment alleges that, as part of the scheme, Downpipe Depot received $237,329 via wire transfer shortly after Kolitsas transported a load of catalytic converters, including stolen converters, to Freehold, New Jersey, in October 2021.  Also, on two occasions in March 2022, Kolitsas transported catalytic converters, including stolen converters, to Island Park, New York, and sold them for a total of approximately $300,000 in cash.

The indictment further alleges that Kolitsas and Bermudez acquired and maintained firearms as Kolitsas’s residence and Downpipe Depot’s warehouse.

“Catalylic converter thefts are more than just an annoying property crime for victims, they increase insurance rates for all car owners and increase pollution in the air we breathe,”  said U.S. Attorney Avery.  “We have also seen a rise in violence connected to catalytic converter theft incidents.  This criminal activity would not exist but for the salvagers and metal processors who orchestrate these thefts and purchase the stolen converters.  I thank the ATF and IRS-Criminal Investigation agents, and all members of our partner state and local law enforcement agencies, for diligently investigating this matter and exposing the alleged participants in this scheme.”

U.S. Attorney Avery noted that the investigation is ongoing.

“Organized criminal activity, such as this, is extremely costly to victims,” said ATF Special Agent in Charge Ferguson.  “Often times these types of crimes fund larger more violent criminal enterprises that place citizens at even greater risk.  This indictment is an example of what can be accomplished when local, state, and federal law enforcement agencies work together.”

“Today’s arrests and indictments effectively shut down a multi-state property theft ring which peddled in stolen catalytic converters,” said IRS-CI Special Agent in Charge Simpson.  “While this is a first of its kind federal prosecution, we know that there are similar schemes all across the country.  If nothing else, this case should serve as a stark warning to all of those involved in these types of schemes that it’s not a matter of ‘if’ you will be brought to justice but ‘when.’”

The indictment charges Koltisas, Bermudez, Alicea, Ayala and Owens with one count of conspiracy to transport stolen property, an offense that carries a maximum term of imprisonment of five years, and with one or more counts of interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of 10 years.

The indictment also charges Kolitsas with one count of promotional money laundering, which carries a maximum term of imprisonment of 20 years, for using proceeds from the theft and sale of catalytic converters to purchase a Ford Transit Van.  He is also charged with two counts of engaging in monetary transactions with proceeds of specified unlawful activity, an offense that carries a maximum term of imprisonment of 10 years on each count, related to his using Downpipe Depot funds to make a payment to a Mercedes Benz dealership in Florida, and to purchase a home entertainment system.

Kolitsas is also charged with one count of possession of firearms by an unlawful drug user or addict, an offense that carries a maximum term of imprisonment of 10 years.

On June 1, 2022, law enforcement executed multiple court-authorized search warrants and seized five firearms from Kolitsas, approximately $47,007 in cash from Kolitsas, approximately $20,100 in cash from Bermudez, approximately $8,020 in cash from Downpipe Depot, the Ford Transit Van, a 2018 Chevrolet Silverado, and a 2016 Polaris Slingshot.  The indictment seeks the forfeiture of this property, as well as approximately $92,581 that is held in a Downpipe Depot bank account.

Kolitsas was surrendered to law enforcement today.  His arraignment is scheduled for 12:30 p.m. via videoconference before U.S. Magistrate Judge Maria E. Garcia in New Haven.

Bermudez and Alicea were arrested yesterday.  Bermudez is released on a $150,000 bond and Alicea is detained pending a hearing scheduled for August 26 at 3:00 p.m.

Ayala is currently in state custody, and Owens is currently in federal custody for an unrelated offense.

U.S. Attorney Avery stressed that an indictment is not evidence of guilt.  Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the East Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and A. Reed Durham.

Source: United States Department of Justice News

Acting United States Attorney Nicholas Vassallo announced today that EMILIO LEE WESAW, age 31, of Fort Washakie, Wyoming, was sentenced on August 16, 2022, for assault resulting in serious bodily injury. Chief United States District Court Judge Scott W. Skavdahl sentenced Wesaw to 27 months’ imprisonment and three years of supervised release, and ordered him to pay a $100 special assessment.

On October 29, 2021, on the Wind River Indian Reservation, Wesaw sent a text message to the victim asking for a ride. When the victim arrived at Wesaw’s residence to pick him up, Wesaw opened the driver’s side door of the vehicle, pulled the victim out of the vehicle and, without provocation, began striking the victim’s head with his fists and feet. After the assault, Wesaw fled the area. The victim was subsequently treated for a fractured skull.

This crime was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant United States Attorney Michael J. Elmore prosecuted the case.

Case No. 22-cr-00042-SWS

Source: United States Department of Justice News

Acting United States Attorney Nicholas Vassallo announced today that JIN CHEN LIANG, age 62, of Corona, California, was sentenced for conspiracy to defraud the government in a hearing on August 16, 2022, before Chief United States District Court Judge Scott W. Skavdahl. Liang was sentenced to five years’ probation, with the first six months under home confinement, and was ordered to pay a $200 special assessment and over $700,000 in restitution to the State of Wyoming and the IRS. The United States recommended a sentence of 30 months’ incarceration.

Liang developed, sold, and installed software that enabled several restaurants in Wyoming to conceal cash sales, facilitating the restaurant owners’ under-reporting of the amount of sales tax owed to the State of Wyoming and the amount of income tax owed to the federal government.  Liang sold the software to individuals who owned restaurants in Casper, Cheyenne, Green River, Riverton, and Rock Springs. The total amount of under-reported tax was approximately 2 million dollars. The Wyoming Department of Audit suspected the presence of the software on the Wyoming restaurants’ point of sales systems and collaborated with the Wyoming Division of Criminal Investigation and the IRS during the investigation.

Restaurant owners who bought and used Liang’s software, Quyen Sam Ha, Soi Sam Ha, and Jenn Sam Ho, were previously convicted of wire fraud and conspiracy to defraud the government. All the convicted restaurant owners were placed on supervised probation for a term of 5 years and have already paid restitution totaling over 1.8 million dollars to the State of Wyoming and the IRS.  

“This was the culmination of an investigation that began in 2016 and involved multiple Wyoming restaurants,” said Acting United States Attorney Nicholas Vassallo. “The crime facilitated by Liang’s software harmed not only the State of Wyoming, but it also created an unfair advantage over law-abiding restaurant owners who lawfully paid state and federal taxes. Due to the diligent and collaborative work of both federal and state investigative agencies, Liang’s criminal enterprise has been dismantled.” 

“The use of revenue suppression software to hide your income is a crime against not only the federal government, but all honest taxpayers,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “IRS Criminal Investigation special agents are experts in uncovering sophisticated tax avoidance schemes, and we will continue to pursue individuals and organizations attempting to avoid their tax obligations.” 

This crime was investigated by Internal Revenue Service Criminal Investigation, Wyoming Division of Criminal Investigation, the Wyoming Department of Audit, and the California Department of Tax and Fee Administration. Assistant United States Attorney Stephanie I. Sprecher prosecuted the case.

Case No. 21-cr-00068-SWS

Source: United States Department of Justice News

Acting United States Attorney Nicholas Vassallo announced today that ELVIN WAYNE MCCLAIN, 30, of Arapahoe, Wyoming, was sentenced on August 18, 2022, for assault with a dangerous weapon with intent to do bodily harm. United States District Court Judge Nancy D. Freudenthal sentenced McClain to 36 months’ imprisonment and three years of supervised release, and ordered him to pay a $100 special assessment.

On December 12, 2021, McClain’s vehicle pulled up to Sage West Hospital in Riverton, Wyoming. The victim exited the passenger side of the vehicle and limped into the emergency room, while McClain’s vehicle fled the area. The victim was treated for multiple stab wounds to the left leg. The injuries were the result of McClain stabbing the victim multiple times with a kitchen knife while driving across the Wind River Indian Reservation. 

This crime was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Michael J. Elmore prosecuted the case.

Case No. 22-CR-00013-NDF

Source: United States Department of Justice News

WILMINGTON, N.C. – A Bayboro man was sentenced yesterday to 70 months in prison for distributing more than 28 grams of crack on multiple occasions.  On May 17, 2022, George Henry Midgette, also known as “Jersey George,” pleaded guilty to the charges.

Midgette, 62, was first identified as a Pamlico County drug dealer in 2017. Law enforcement went on to execute a series of drug buys from Midgette at different locations throughout Pamlico County. The investigation culminated in Midgette’s arrest by the Pamlico County Sheriff’s Office on September 20, 2021.  Midgette also had previous convictions for drug crimes in North Carolina, Maryland, and New York.

This investigation is part of operation “Last Call” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. Operation Last Call targeted individuals engaged in the distribution of controlled substances throughout Pamlico County and surrounding areas. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.

Michael F. Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Pamlico County Sheriff’s Office, North Carolina State Bureau of Investigation, United States Drug Enforcement Administration, and Department of Homeland Security investigated the case and Assistant U.S. Attorney Tyler Lemons  prosecuted the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-cr-00072-M-1.

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