Waldorf Drug Trafficker Sentenced to over 20 Years in Prison

From the DEA:

December 15, 2014
Contact: Public Information Officer
Number: 202-307-3936

Waldorf Drug Trafficker Sentenced to over 20 Years in Prison

DEC 15 (GREENBELT, Md.) - U.S. District Judge George J. Hazel sentenced John David White, age 42, of Waldorf, Maryland today to 248 months in prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute cocaine and heroin, possession and attempt to possess with intent to distribute cocaine and heroin, maintaining a drug-involved premises and possession of a firearm in furtherance of a drug trafficking crime.

The sentence was announced by Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief Mark A. Magaw of the Prince George’s County Police Department; Charles County Sheriff Troy Berry; and Chief Mark Fronterotta of the Inglewood, California Police Department.
 
According to evidence presented at the six-day trial, from at least August 2010 through June 6, 2013, White purchased illegal narcotics in California and shipped the drugs to Maryland for distribution.  During this time period, White sent shipments from the East Coast to California via FedEx and private freight carriers.  In April 2011, law enforcement intercepted one of the shipments and found $30,000 in vacuum sealed packaging.  The evidence further established that from August 2010 through May 2013, White sent 25 shipments, weighing at least 140 pounds each, from California to Maryland, through several private freight carriers.

On May 28, 2013, law enforcement intercepted a crate shipment from California to a self-storage facility in Hyattsville, Maryland.  Hidden inside a toaster oven within the crate were two bricks of cocaine weighing over two kilograms.  The next day, a freight shipping company delivered the crate to the storage unit which was leased to White and a company that he controlled called City Urban. Later that same day, White arrived at the storage facility, unlocked his storage unit, pushed the crate inside and then closed his storage unit.  As White attempted to leave the storage facility, he was arrested.

Law enforcement executed a search warrant on May 30, 2013 at White’s storage unit and found several empty crates; packaging material; two digital scales; metal measuring spoons, one of which had heroin residue; and three plastic bags containing approximately 185 grams of heroin.  Law enforcement later executed a search at White’s residence on June 6, 2013, and seized $7,967; a .45 caliber pistol; ammunition; drug paraphernalia that contained heroin residue; and numerous cell phones, at least two of which contained text messages, in coded language, regarding the purchase and sale of narcotics.

United States Attorney Rod J. Rosenstein praised the DEA, Maryland Transportation Authority Police, Prince George’s County Police Department, Charles County Sheriff’s Office and Inglewood, California, Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas Mitchell and Adam Ake, who prosecuted the case.

Nevada Pair Plead Guilty to Conspiring to Distribute Methamphetamine and Launder Drug Proceeds

From the DEA:

December 16, 2014
Contact: Public Information Officer
Number: 206-553-1162

Nevada Pair Plead Guilty to Conspiring to Distribute Methamphetamine and Launder Drug Proceeds

DEC 16 (ANCHORAGE, Alaska) –Billy Cooks, 36, aka “Red Dollaz,” pleaded guilty on December 12, 2014, to conspiracy to distribute a controlled substance, namely methamphetamine, and conspiracy to commit money laundering. Previously, Cooks’ co-conspirator, E’lala Frank, 36, also pleaded guilty to conspiracy to commit money laundering. A third conspirator, Dawud Johnson, has also pleaded guilty to related charges of attempting to possess methamphetamine and possessing a firearm during and in relation to a drug trafficking offense.

According to information presented to the court, Cooks and Johnson forged a drug trafficking partnership that revolved mostly around methamphetamine. The two worked together to send methamphetamine from Las Vegas to Anchorage. Cooks enlisted Frank to send the methamphetamine through the mail to contacts Johnson had in Alaska. From December 2, 2013, through January 21, 2014, the conspirators sent three packages of methamphetamine. They were caught when attempting to send the third package.

Cooks and Frank admitted to conspiring to transmit drug trafficking proceeds through a variety of means in order to obscure and conceal the fact that the funds were from drug trafficking. The conspirators deposited and withdrew drug trafficking proceeds using at least two bank accounts.

Conspiracy to distribute a controlled substance carries a sentence of imprisonment up to 40 years and a fine not to exceed $5,000,000. The money laundering conspiracy carries a maximum 20 year sentence and a $500,000 fine. Sentencing for both defendants is set for February 27, 2015. Defendant Johnson was previously sentenced to 15 years in prison.

The case was investigated by the Drug Enforcement Administration (DEA) and the Internal Revenue Service Criminal Investigation (IRS-CI).

Caldwell Restaurant Owner, Music Promoter & Drug Trafficker Sentenced for Tax Evasion

From the DEA:

December 16, 2014
Contact: Public Information Officer
Number: 206-553-1162

Caldwell Restaurant Owner, Music Promoter & Drug Trafficker Sentenced for Tax Evasion

DEC 16 (BOISE, Idaho) –Rogelio Contreras Villasenor, 49, of Caldwell, Idaho, was sentenced yesterday to 41 months in prison for conspiracy to attempt to evade and defeat tax.  United States District Judge Edward J. Lodge also ordered Villasenor to serve three years of supervised release following his prison sentence and pay a $20,000 fine. He pleaded guilty on July 10, 2014. Last week, Villasenor attempted to withdraw his guilty plea. At yesterday’s sentencing hearing, Villasenor testified under oath that his prior attorney failed to advise him of potential defenses. His prior counsel also testified after Judge Lodge waived his attorney-client privilege. His prior counsel advised Judge Lodge that he had informed Villasenor of any and all potential defenses. Judge Lodge denied his motion to withdraw his guilty plea and ruled that the defendant falsely testified under oath. Villasenor’s sentence was enhanced for obstructing justice.

According to court documents, Villasenor, owned and operated Tacos Michoacan for almost two decades. Villasenor admitted that beginning in 2005, and continuing to 2011, he conspired to fail to report $1,176,506.91 in income. At sentencing, Judge Lodge found that Villasenor derived some of his unreported income from illegal outdoor marijuana grows on public lands, methamphetamine, marijuana, and cocaine trafficking. As part of his plea agreement, Villasenor agreed to civilly forfeit real property, bank accounts, and a vehicle. Additionally, Villasenor agreed to a tax assessment of at least $329,421.93 to the Internal Revenue Service.

The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force.  Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.

The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.

Florida Man Pleads Guilty to Structuring More Than $2.5 Million in Proceeds of Drug Trafficking

From the DEA:

December 15, 2014
Contact: DEA Public Affairs
Number: 415-436-7994

Florida Man Pleads Guilty to Structuring More Than $2.5 Million in Proceeds of Drug Trafficking

DEC 15 (FRESNO, Calif.) – Chad Allen Riffle, 22, of Citrus Springs, Florida, pleaded guilty today to one count of conspiring to structure cash transactions.

According to the plea agreement and court documents, Riffle and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of drug trafficking from Florida and other states back to California. Riffle made the cash deposits in amounts of $10,000 or less to attempt to prevent Currency Transaction Reports from being filed by the banks on his cash deposits. Currency Transaction Reports are prepared by banks for any transaction involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.

Riffle also waived his interest in numerous assets seized by law enforcement, including a Land Rover, two Bentleys, two Mercedes Benzes, and a 30-foot motorboat.

This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.

This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn, Patrick R. Delahunty, and Jeffrey Spivak are prosecuting the case.

Riffle is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on March 9, 2015. The maximum statutory penalty for conspiracy to structure is five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Tioga Man Charged with Manufacturing Methamphetamine

From the DEA:

October 16, 2014
Contact: Public Information Officer
215-800-7761

Tioga Man Charged with Manufacturing Methamphetamine

OCT 16 (TIOGA, Pa.) –The United States Attorney for the Middle District of Pennsylvania announced that a criminal Information was filed yesterday charging Orin Moore, age 41, of Lawrenceville with possession with intent to distribute methamphetamine.

According to U.S. Attorney Peter Smith, on January 6, 2012, the Pennsylvania State Police went to Moore’s residence.  They allegedly found over 6 grams of methamphetamine and a facility designed for the manufacturing of methamphetamine.  The government also filed a plea agreement which is subject to the approval of the Court. 

The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration.  The case is being prosecuted by Assistant U.S. Attorney Eric Pfisterer. 

A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
           
In this particular case, the maximum penalty for Moore is 20 years in prison, a term of supervised release following imprisonment, and a fine.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs.  For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

Curious Goods LLC Coconspirators Sentenced for Synthetic Marijuana Sales Scheme

From the DEA:

December 16, 2014
Public Information Officer
Number: 504-840-1363

Curious Goods LLC Coconspirators Sentenced for Synthetic Marijuana Sales Scheme

DEC 16 (LAFAYETTE, La.) – Drug Enforcement Administration (DEA) Assistant Special Agent in Charge Joseph W. Shepherd and United States Attorney Stephanie A. Finley announced today that Curious Goods LLC and six individuals charged in a synthetic marijuana sales and money laundering scheme operated through the company’s retail stores were sentenced today. United States District Judge Elizabeth E. Foote presided over the hearings.

Curious Goods LLC was ordered to pay a $40,000 fine. The company was also ordered to forfeit $859,989 in illegal proceeds derived from the scheme, as well as two cars and a speed boat. Also sentenced today was one of the company’s owners, Richard Buswell of Lafayette. Buswell was sentenced to 103 months in prison and three years of supervised release. Five other co-conspirators were also sentenced today as follows:  Drew Green, 117 months prison, three years supervised release, and $20,000 fine; Tommy Malone, 117 months prison, three years supervised release, and $20,000 fine; Boyd Barrow, 70 months prison and three years supervised release; Josh Espinoza, 61 months prison and three years supervised release; and Daniel Francis, 42 months prison and one year supervised release.

In September of 2012, Curious Goods LLC and co-conspirators: Alexander Derrick Reece, 42 of Gainesville, Fla.; Drew T. Green, 40 of Roswell, Ga.; Thomas William Malone, Jr., 48 of Roswell, Ga.; Boyd Anthony Barrow, 46 of Canton, Ga.; Joshua Espinoza, 51 of Marietta, Ga.; Richard Joseph Buswell, 46 of Lafayette, La.; Daniel Paul Francis, 44 of Dawsonville, Ga.; and Daniel James Stanford, 57, of Lafayette, La., were charged by a grand jury in a 16-count indictment with conspiracy to distribute synthetic drugs (Count 1), conspiracy to introduce misbranded drugs into interstate commerce (Count 2), conspiracy to commit money laundering, and various money laundering charges (Counts 3 to 16).

At the time of the indictment, Curious Goods LLC was a business based in Lafayette that marketed smoking and other products in stores throughout Acadiana. Curious Goods stores sold a product called “Mr. Miyagi” that was infused with synthetic cannabinoids. Although mislabeled as a potpourri, “Mr. Miyagi” was sold to be smoked for the sole purpose of getting the consumer of the product “high.” The synthetic cannabinoids infused into “Mr. Miyagi” are considered Schedule I controlled dangerous substances under federal law. From March 1, 2011 to December 31, 2011, Curious Goods stores made approximately $5 million from the sale of the illegal “Mr. Miyagi” product.

Barrow and Espinoza controlled and operated Pinnacle Products LLC/Pinnacle Products Group, based in Marietta, Ga. Pinnacle was the manufacturer of the “Mr. Miyagi” products and supplied the products to the local Curious Goods stores. Pinnacle obtained the synthetic cannabinoids used to manufacture “Mr. Miyagi” from NutraGenomics, which was located in an Alpharetta, Ga., and was controlled by co-conspirators Green and Malone. NutraGenomics distributed synthetic cannabinoids throughout the United States.

“This case is a huge victory for the people of Acadiana,” U.S. Attorney Finley stated. “The defendants in this case intentionally sold a dangerous drug that was shamelessly marketed to young people. Too many members of our community were lured into the Curious Goods stores that sold this poison. This case highlights how lucrative this industry is and reveals the lengths that criminals are willing to go to profit while endangering the health and safety of citizens. Dedicated men and women of federal, state and local law enforcement fought to bring these defendants to justice. They are to be commended for years of hard work to get these illegal substances off the streets and hold these criminals accountable. I hope that store owners, franchisees, investors and distributers who want a make a fast buck at the expense of others think twice and understand that we will not hesitate to investigate and prosecute their criminal activity.”

The remaining defendant, Lafayette lawyer Daniel Stanford, is scheduled to be sentenced on January 15, 2014. Stanford was convicted after an eight-day jury trial on August 29, 2014. Read more at: www.justice.gov/usao/law/news/wdla20140829.

The DEA, FBI, IRS, HSI, Louisiana State Police, Lafayette Parish Sheriff’s Office, Iberia Parish Sheriff’s Office, Vermillion Parish Sheriff’s Office and the Lafayette Police Department conducted this investigation. Assistant U.S. Attorneys John Luke Walker, J. Collin Sims, and Robert C. Abendroth prosecuted the case.

Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com,www.GetSmartAboutDrugs.com and www.dea.gov.  

Saco Attorney Sentenced to Two Years for Money Laundering Conspiracy

From the DEA:

December 16, 2014
Contact: Public Information Officer
Number: 617-557-2138

Saco Attorney Sentenced to Two Years for Money Laundering Conspiracy

DEC 16 (PORTLAND, Maine) - Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England and United States Attorney Thomas E. Delahanty II announced that Gary Prolman, Esq., 52, of Saco, was sentenced today in U.S. District Court by Judge George Z. Singal to two years in prison and two years of supervised release for conspiracy to launder $177,500 worth of marijuana trafficking proceeds.  Prolman pleaded guilty on April 29, 2014.

            According to court records, between 2011 and October 2013, David Jones and others illegally distributed hundreds of pounds of marijuana in Maine and elsewhere. Between June and September 2012, Prolman laundered about $177,500 worth of those drug proceeds by: (1) taking cash from Jones to purchase an interest in Prolman’s sports agency business; (2) illegally structuring cash deposits and cashier’s check purchases to avoid federal currency reporting requirements; and (3) using structured cashier’s checks to jointly purchase real estate with Jones in a transaction where only Prolman’s name appeared on the deed as the owner. 

            Prolman received three separate $50,000 cash installment payments, largely consisting of low denomination bills delivered in a backpack.  When Prolman attempted to deposit more than $10,000 from the first $50,000 installment into bank accounts he controlled, a bank teller advised him of the federal currency reporting requirement for deposits exceeding $10,000.  Under federal law, financial institutions that receive more than $10,000 in cash from a customer are required to report the transaction to the Internal Revenue Service (IRS).  Structuring occurs when a customer breaks up cash transactions into multiple increments of less than $10,000 to avoid this cash transaction reporting requirement.  Structuring is illegal under federal law and is commonly associated with the laundering of drug proceeds.  After being advised of the reporting requirement by the bank teller, Prolman structured numerous cash deposits and paid $60,409 to close the joint real estate purchase using seven structured cashier’s checks. 
           

            This case was investigated by the U.S. Drug Enforcement Administration, and the IRS, and resulted from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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