Statement on Search Warrants Executed in Midvale, West Valley City

SALT LAKE CITY—Federal law enforcement agencies executed search warrants Tuesday at three locations associated with a business formerly operating under the name “CC Brown Law Office” in Midvale and West Valley City. The business has also operated under other names, including “Sentry Legal,” “WT Lee,” and “JL Martin.” The search warrant is sealed. No criminal charges have been filed in connection with the investigation.

Individuals who have been working with the business on a mortgage modification and who would like information can contact a toll-free number established by the FBI at 1-877-236-8947 (press option 2). The toll-free number will be activated this evening. A recorded message will advise individuals that they can submit contact information and copies of any documents to the FBI by mailing them to the FBI Salt Lake City Division, attention CC Brown Investigation. The FBI’s address is 257 East 200 South, Suite 1200, Salt Lake City, UT 84111.

Individuals can also submit information about the company’s business practices to the FBI by e-mail at saltlakecity@ic.fbi.gov.

The FBI, IRS-Criminal Investigation, and Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) are working together to create a web page to provide an online resource for CC Brown customers. The web page is currently under construction. Anyone interested in the web page can call 1-877-236-8947 (press option 2) for updates on when it will be available.

Several agencies, including the FBI, the Federal Trade Commission, SIGTARP, and the Departments of Treasury and Housing and Urban Development’s Making Home Affordable program, have online resources available to provide information and tips for those looking for consumer advice on mortgage modifications.

Southbridge Man Sentenced to Over 21 Years on Narcotics, Firearms, and Tax Fraud Charges

BOSTON—A Southbridge man was sentenced yesterday in federal court for narcotics distribution, firearms offenses, and tax fraud charges.

Junior Alexander Lopez, 31, was sentenced as a career offender by U.S. District Judge F. Dennis Saylor, IV to 21 years and 10 months in prison, to be followed by eight years of supervised release. Lopez was also ordered to pay over $1 million in restitution to the Internal Revenue Service. Lopez previously pleaded guilty to two federal indictments charging him with one count of possession with the intent to distribute crack cocaine; one count of being a felon in possession of a firearm; one count of conspiracy to defraud the government with respect to tax claims; and 16 counts of false, fictitious and fraudulent tax claims.

On November 20, 2010, a search warrant was executed at 28 Pleasant Street in Southbridge. During the search, over 69 grams of crack cocaine, a Ruger .357 Magnum revolver with an obliterated serial number, over $1,136 in cash, two digital scales, plastic sandwich bags, a firearm, and paperwork in Lopez’s name were recovered. Lopez has previous felony convictions that qualified him as a career offender under the federal sentencing guidelines.

During 2008 and 2009, Lopez also participated in a conspiracy to defraud the government by filing tax returns that falsely claimed the First-Time Home Buyer Tax Credit. Lopez filed these false tax returns after obtaining identity information from third parties under false pretenses and creating false W-2 forms using fictitious employers. The scheme resulted in over $1 million in losses to the government.

In March 2012, Lopez’s co-defendant, Christopher Proe, 27, of Michigan was sentenced to 92 months in prison for his participation in the scheme. Both Proe and Lopez were ordered to pay $1,084,280 in restitution to the Internal Revenue Service.

United States Attorney Carmen Ortiz; Kevin Lane, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation-Boston Field Division; William Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Cortez Richardson, Special Agent in Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General; Chief Daniel R. Charette of the Southbridge Police Department; and the South Worcester County Counter-Crime and Drug Task Force made the announcement today. The case was prosecuted by Assistant U.S. Attorney Cory S. Flashner of Ortiz’s Worcester Branch Office and Assistant U.S. Attorney Fred M. Wyshak, Jr. of Ortiz’s Public Corruption and Special Prosecutions Unit.

Pueblo Bishops Bloods Gang Member Pleads Guilty in Racketeering Case and Admits Involvement in Previously Unsolved Murders

LOS ANGELES—A member of the Pueblo Bishops Bloods, a criminal street gang that had used violence and intimidation to control the Pueblo del Rio housing project in South Los Angeles, pleaded guilty this morning to federal racketeering charges, specifically admitting that he was involved in the murders of two people not affiliated with any gang in attacks that had been unsolved prior to a federal RICO indictment, announced United States Attorney André Birotte, Jr., whose office is handling the prosecution of the case.

Marquis Edwards, 22, of Los Angeles, who was known by the moniker “Baby Uzi,” pleaded guilty this morning and acknowledged participating in separate shooting attacks that killed a teenager in 2006 and a woman in 2007. Edwards also acknowledged participating in an attack in which bullets were fired at a group mourning the death of the youth killed by members of the Pueblo Bishops Bloods gang.

Appearing this morning before United States District Judge S. James Otero, Edwards admitted that he and other Pueblo Bishops gang members participated in a September 4, 2006 morning bush attack on a group of young people. Edwards jumped out of one of the vehicles involved in the attack, chased the victims and shot 15-year-old Jose Maldonado at close range. Maldonado—a high school honors student who was not affiliated with any gang—bled to death on his own driveway. Two other Latino youths with Maldonado were also shot and injured during the shooting.

On the night Maldonado was killed, Edwards and another gang member returned to the site of the murder, where family members had gathered for a vigil and to clean up Maldonado’s blood. The other gang member shot into the vigil crowd, injuring one.

Edwards also admitted to participating in a March 18, 2007 attack in which a 35-year-old single mother was fatally shot. Edwards and other Pueblo Bishop Bloods gang members in a convoy surrounded a van driven by Laura Sanchez, who yelled at her 18-year-old son to get down, which likely saved his life. Sanchez was struck by multiple bullets and died that night. Her son was able to escape the car and survive. Neither Sanchez nor her son had any known gang ties.

All three shooting incidents were unsolved prior to a federal racketeering indictment that was unsealed in August 2010 (see: http://www.justice.gov/usao/cac/Pressroom/pr2010/122.html). After the initial indictment, which did not name Edwards, federal prosecutors, special agents from the Federal Bureau of Investigation, and officers from the Los Angles Police Department continued to investigate the gang, specifically looking at unsolved murders and other violence. With additional evidence, a grand jury issued a second indictment in May 25, 2011 that charged Edwards and other gang members and alleged new crimes.

Edwards becomes the fourth Pueblo Bishop gang member to plead guilty to racketeering offenses and admit first-degree murder allegations in the Maldonado and Sanchez killings. Prior to the federal RICO indictment, three of these four defendants were uncharged in relation to the murders. Each now faces a maximum sentence of life imprisonment for their roles in the murders.

Edwards is set to be sentenced by Judge Otero on August 20.

A total of 45 defendants were charged in the federal indictments. With Edwards guilty plea today, 33 of those defendants have now been convicted; three are in state custody, and two are fugitives. A trial for seven remaining defendants is pending and scheduled to begin on June 5 before Judge Otero.

This case is the result of an investigation conducted by the Federal Bureau of Investigation; the Los Angeles Police Department, Newton Division; the United States Department of Housing and Urban Development-Office of Inspector General; and the Los Angeles County District Attorney’s Office.

Contacts:

Assistant United States Attorney Mack Jenkins

Organized Crime Drug Enforcement Task Force

(213) 894-2091

Assistant United States Attorney Christopher K. Pelham

Organized Crime Drug Enforcement Task Force

(213) 894-0610

Former Chief of Police of Port Allen Sentenced to Seven and a Half Years in Prison

BATON ROUGE—United States Attorney Donald J. Cazayoux, Jr. announced the results of another lengthy sentence imposed in Operation Blighted Officials. Chief U.S. District Judge Brian A. Jackson sentenced FREDERICK W. SMITH, age 41, of Port Allen, Louisiana, to 90 months’ imprisonment, one year supervised release following imprisonment, a $17,000 fine, and forfeiture of $18,990.

SMITH’s sentence was based on his corrupt activities while serving as the chief of police for the City of Port Allen, Louisiana. In October 2011, following a seven-day trial, a federal jury convicted SMITH on all counts of an indictment charging him with violating the Racketeer Influenced and Corrupt Organizations Act (RICO), mail fraud, wire fraud, and use of an interstate facility in aid of racketeering.

The evidence at trial established that SMITH solicited and took thousands of dollars in cash, tickets to professional sporting events, a luxury hotel stay, and expensive meals from individuals posing as businessmen in connection with an FBI undercover operation. In exchange, SMITH took the following official actions: (1) provided the businessmen with an official PAPD lieutenant’s badge, an official PAPD sergeant’s badge, and an official PAPD commission card; (2) caused a Louisiana State Police ticket to be dismissed by the District Attorney’s Office for the 18th Judicial District; (3) caused a Port Allen City Marshal ticket to be dismissed by the Port Allen City Prosecutor’s Office; (4) provided an official letter designed to cause a Connecticut Superior Court Judge to grant leniency for a drug defendant he did not know; and (5) provided confidential law enforcement information concerning numerous individuals.

In addition to those completed bribes, SMITH sought many others, including his request for $3,500 in cash in exchange for more official PAPD badges, police blue lights, a police bullet-proof vest, and weapons from the PAPD evidence room. SMITH also solicited a six-month lease on a condominium in New Orleans in exchange for providing confidential law enforcement information.

SMITH began engaging in criminal activity before having any contact with the businessmen. Through the then-mayor of Port Allen, SMITH unlawfully provided confidential law enforcement information to the businessmen and agreed to continue providing such information in exchange for bribes. Upon meeting the businessmen in person, SMITH began talking about criminal activity within 90 seconds.

SMITH lied to employees of the West Baton Rouge Office of Homeland Security in connection with numerous requests for confidential law enforcement information. As an example, SMITH falsely told a dispatcher that he was seeking information on four individuals as part of a burglary investigation. In fact, SMITH was seeking the information in order to provide it to people he believed to be businessmen in exchange for bribes.

SMITH is the third defendant to be sentenced in Operation Blighted Officials. Chief Judge Jackson previously sentenced former New Roads Mayor Thomas Nelson, Jr. to 11 years’ imprisonment after Nelson was convicted at trial of racketeering and other offenses. Chief Judge Jackson also previously sentenced former White Castle Mayor Maurice Brown to 10 years’ imprisonment after Brown was convicted at trial of racketeering and other offenses. The remaining defendants to be sentenced are former St. Gabriel Mayor George Grace, Sr., who was recently convicted at trial; former Port Allen Mayor Derek Lewis, who pled guilty; and former Port Allen Council Member Johnny Johnson, who pled guilty.

U.S. Attorney Cazayoux stated, “The court sent a strong message today that those who engage in public corruption in this district will be dealt with severely. This case is particularly disturbing given that the defendant was a chief of police. We hope that this defendant’s actions will not overshadow the honest work and dedication by the vast majority of law enforcement officers, including the many honorable and fine members of the Port Allen City Police Department. My office, together with the FBI and our other federal, state, and local partners, will continue to aggressively pursue such matters wherever the evidence and facts take us.”

FBI Special Agent in Charge David Welker stated: “As police officers, we are entrusted to uphold the laws of the United States and Louisiana. If the law is to be honored, it first must be respected by those who enforce it. Chief Smith failed his obligation to remain faithful to this oath to uphold the law and as a result, tarnished the badge that so many wear proudly and so many have made great sacrifices to defend.”

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office for the Middle District of Louisiana, with assistance from the U.S. Department of Housing and Urban Development, Office of Inspector General, and the U.S. Department of Homeland Security, Office of Inspector General. This matter was prosecuted by Assistant United States Attorneys Corey R. Amundson, M. Patricia Jones, and Michael J. Jefferson.

Latin King Founder Sentenced for Murder in Aid of Racketeering

ALLENTOWN—Luis Colon, 28, of Allentown, Pennsylvania, was sentenced today to 28 years in prison for conspiracy to participate in a racketeering enterprise, conspiracy to commit murder in aid of racketeering activity, distribution of a controlled substance, distribution of a controlled substance within 1,000 feet of a public housing facility, and use and carrying of a firearm during and in relation to a crime of violence. Colon, a/k/a “King Respect,” was the founding member and “First Crown” of the Almighty Latin King and Queen Nation (“ALKQN” or “Latin Kings”), Bethlehem Sun Tribe. A total of 24 members of the gang were charged federally in 2010 with crimes that included using violence and intimidation as a means to maintain territory, power, and profits. The gang even kidnapped, assaulted, and murdered its own members for violating any of the tribes rules. Colon was one of 12 members charged with the RICO conspiracy. He pleaded guilty on July 9, 2011.

Among the crimes that Colon participated in:

■On March 17, 2004, in Vineland, New Jersey, Luis Colon and five co-defendants traveled to Vineland, New Jersey upon orders of the Philadelphia chapter of the Latin Kings, armed with firearms, body armor, and ammunition, to serve as “soldiers” to assist in the murder of members of the New Jersey Latin Kings. The plan was thwarted when law enforcement raided the gathering location and arrested Colon and other Latin King members.

■On January 27, 2008, Luis Colon and four co-defendants discussed the possible murder of someone they believed had cooperated with law enforcement in the Saucon Park murder investigation.

■Between November 22, 2007 and February 2, 2010, in Bethlehem, Pennsylvania, Luis Colon and three co-defendants distributed crack cocaine and methamphetamine.

■In May 2008, the defendant hired two individuals, including a fellow Latin Kings member, to travel to Las Vegas to pick up approximately four pounds of methamphetamine from the defendant’s uncle and return it to Bethlehem via Philadelphia International Airport. The defendant provided the couriers with $40,000 in cash for the purchase. The defendant then waited at the airport for the men to return. However, on their return flight from Las Vegas, law enforcement officers intercepted their luggage and seized 1,793 grams of methamphetamine before the defendant could take possession of it.

In addition to the prison term, U.S. District Court Judge Joel H. Slomsky ordered Colon to pay a $3,000 fine and complete 10 years of supervised release.

This case was part of the “222 Corridor Anti-Gang Initiative,” a federally funded program designed to defeat some of the most violent and pervasive gangs in the country.

The case was investigated by the FBI Philadelphia Division Allentown Resident Agency, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Department of Housing and Urban Development Office of Inspector General, and the Bethlehem Police Department. It is being prosecuted by Assistant United States Attorney John M. Gallagher.