ATF ANNOUNCES $10,000 REWARD IN TORRANCE FIREARMS BURGLARY INVESTIGATION

TORRANCE, Calif. — Special Agent in Charge Steven J. Bogdalek, of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Los Angeles Field Division, and the Torrance Police Department, (TPD), today announced that a $5,000 reward will be offered for information leading to the arrest and conviction of the individual(s) responsible for the theft of firearms from a federal firearms licensee. Turner’s Outdoorsman is also matching ATF’s reward with an additional $5,000 for a total of $10,000 for information. The burglary occurred Tuesday, Aug. 28, 2012, at Turner’s Outdoorsman, a federal firearms licensee (FFL), (licensed gun dealer), located at 18305 Hawthorne Blvd, Torrance. Torrance Detectives are reviewing surveillance videos and evidence at the scene to identify possible suspects. At this time it appears the suspect(s) stole several handguns and rifles from the store.

“Due to an increase in firearm burglaries in recent weeks, we are asking federal firearms licensee’s to re-examine their security options for safeguarding their stores,” said Bogdalek. “We are also asking for the public assistance by offering this reward for information on the person(s) involved in these thefts.”

“Torrance Detectives and ATF Agents are using all their available resources to investigate this case and locate all persons involved in this burglary.” said Sgt Robert Watt, TPD. ATF is the federal agency responsible for investigating all thefts of firearms from FFLs. ATF is using its expertise in tracking and tracing stolen firearms to pursue those responsible for this theft. ATF and the Corona Police Department have tracked several leads and are asking for the public’s help in providing additional details regarding the theft. Anyone with information on the crime should contact ATF’s toll-free, 24-hour tip line at 1-800-ATF-GUNS (800-283-4867). Callers can remain anonymous.

Seven Alleged Members of Westwood-Area Drug Trafficking Organization Arrested

CINCINNATI—Teams of local law enforcement officers and federal agents this morning arrested seven people charged in complaints filed in U.S. District Court alleging that they conspired to distribute more than 1,000 kilograms of marijuana. The crime carries a punishment of at least 10 years and up to life in prison.

Carter M. Stewart, United States Attorney for the Southern District of Ohio; Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration, Detroit Field Division (DEA); Ed Hanko, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati (FBI); and Cincinnati Police Chief James Craig announced the arrests, which occurred simultaneously starting at 6:45 this morning in the Westwood area of Cincinnati.

The seven charged in federal complaints are:

■Masai “Lee” Williams, 25

■David “Dirty” Alexander, 25

■Quincy Showes, 25

■Darias “Jizzle” Jackson, 22

■Bruce “Donnie” Stewart, 25

■Antonio “T.O” Howard, 34

■Randy Steele, 30

The teams also executed a series of search warrants and made arrests of individuals charged locally with drug trafficking.

“This is a coordinated attempt to dismantle an entire drug trafficking organization from top to bottom,” Stewart said.

For approximately eight months, the DEA Cincinnati Resident Office, the FBI Cincinnati Office, and the Cincinnati Police Department have been investigating a large scale marijuana trafficking organization in the Cincinnati, Ohio area. The teams making the arrests, which occurred without incident, included agents and officers from the agencies named above, in addition to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), who are part of the Violent Crime Enforcement Team; and the Hamilton County Police Association SWAT team.

Court documents allege that on May 25, 2012, undercover agents picked up approximately $500,000 from Williams and Alexander, and then again on June 5, 2012, undercover agents picked up approximately $400,000 from Williams, all of which agents believe to be proceeds from illegal marijuana trafficking. As a result of the undercover money pick-ups and further investigation into Williams and Alexander, the DEA Cincinnati Resident Office began a court-authorized wire interception on Williams’ cellular telephone beginning on June 28, 2012, and ending on August 8, 2012.

During the DEA wire interceptions, agents were able to identify Showes, Jackson, Stewart, Howard, Steele, and others as co-conspirators. The indictment alleges that Williams and Alexander arranged for loads of marijuana to be sent to the Cincinnati area from a source outside Ohio. Once the shipments of marijuana reached Cincinnati, the marijuana was allegedly given to Showes as a drug stash house keeper and would distribute the marijuana to Stewart, Steele, Howard, Jackson, and others.

The defendants appeared before a federal magistrate judge for an initial appearance and were held without bond until detention hearings can be conducted next week. The case could then be presented to a federal grand jury for possible indictments. This investigation is continuing.

Stewart commended the cooperative investigation by agents and officers of the agencies named above, as well as Assistant U.S. Attorney Karl Kadon, who is the lead prosecutor in the case.

A complaint is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

New Haven Men Sentenced to Federal Prison for Distributing Narcotics

David B. Fein, United States Attorney for the District of Connecticut, announced that two men involved in a New Haven drug trafficking organization were sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven.

This matter stems from a joint law enforcement investigation conducted by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department, and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was centered in the Newhallville section of New Haven and Hamden that was responsible for the distribution of crack cocaine and cocaine throughout the Greater New Haven area.

Russell Battles, also known as “Cuddy” and “Cuddy Russ,” 29, of New Haven, was sentenced to 152 months of imprisonment, followed by five years of supervised release. On May 2, 2011, Battles pleaded guilty to one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine. According to court documents and statements made in court, in September and October 2010, Battles was intercepted several times over a wiretap arranging to purchase multiple kilograms of cocaine.

Milton Johnson, also known as “Tilt,” 28, of New Haven, was sentenced to 48 months of imprisonment, followed by four years of supervised release. On April 3, 2012, Johnson pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack cocaine.”) According to court documents and statement made in court, between June and October 2010, Johnson distributed between 196 and 280 grams of crack cocaine.

Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation.

U.S. Attorney Fein noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.

This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of members of the New Haven, Milford, and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden, and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.

The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the ogfice’s Project Safe Neighborhoods and Anti-Gang programs.

This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.

Bank Fraud Defendants Sentenced to 60 and 70 Months

Defendants Fraudulently Obtained $19.67 Million from Washington Mutual

SAN FRANCISCO—Michael Ohayon and David Papera were sentenced yesterday to 60 and 70 months in prison, respectively, and ordered to pay more than $10.5 million in restitution for conspiracy to commit bank fraud and money laundering, United States Attorney Melinda Haag announced.

Ohayon pleaded guilty to conspiracy to commit bank fraud, bank fraud, and money laundering on May 24, 2010. Papera pleaded guilty to conspiracy to commit bank fraud and money laundering on April 19, 2012.

Ohayon and Papera formed a company called Sage Creek Ranch LLC for the purpose of developing multiple parcels of property in California’s Napa County. According to the plea agreements, they admitted to obtaining millions in loans from Washington Mutual Bank by submitting fraudulent loan applications in the names of “straw buyers”—i.e., individuals with good credit scores who would each obtain a residential loan to purchase a parcel from Sage Creek Ranch LLC, but who would in reality make neither down payments nor mortgage payments on the property. Ohayon and Papera admitted that they knew that the straw buyers’ loan applications included materially false information about the buyers’ income. They further admitted that they used more than $1.25 million of the loan proceeds to pay down one of Papera’s loans on a separately owned property.

Ohayon, 44, of San Francisco, and Papera, 50, of San Rafael, California, were indicted by a federal grand jury on February 11, 2010. They were charged with conspiracy to commit bank fraud, bank fraud, and money laundering.

In addition to Ohayon and Papera, six of the straw buyers were charged with and pleaded guilty to tax felonies for failure to report as income approximately $50,000 they each received from Ohayon and Papera for allowing their names and credit to be used in the bank fraud scheme.

The sentence was handed down by U.S. District Court Judge Charles R. Breyer following Ohayon’s guilty plea to conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349; bank fraud, in violation of § 1344; and money laundering, in violation of 18 U.S.C. § 1957; and Papera’s guilty plea to conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349; and money laundering, in violation of 18 U.S.C. § 1957. Judge Breyer also sentenced the Defendants to a five-year period of supervised release and ordered them to make restitution to Chase Home Finance (Washington Mutual’s successor) in the amount of $10,586,079.73. Ohayon is scheduled to begin serving his sentence on January 4, 2013. Papera is scheduled to begin serving his sentence on November 2, 2012.

Tracie L. Brown and Denise M. Barton are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Rayneisha Booth, Elizabeth Garcia, and Maryam Beros. The prosecution is the result of a lengthy investigation by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.

Two Bridgeport Men Convicted of Gang-Related Narcotics Trafficking Offenses

David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found two Bridgeport men guilty of charges stemming from their participation in gang-related narcotics trafficking. The trial before United States District Judge Janet Bond Arterton began on August 20, and the jury returned the verdicts yesterday after deliberating for approximately three hours.

Joseph Reyes, also known as “Fat Joe,” “Deep” and “RJ,” 28; and Richard Daniels, also known as “Po” and “Wap,” 30, were each found guilty of one count of conspiracy to possess with intent to distribute one kilogram or more of heroin and 280 grams or more of cocaine base (“crack cocaine”) and one count of conspiracy to maintain a drug-involved premises. Reyes also was found guilty of one count of possession of a firearm by a previously convicted felon.

This matter stems from Operation Slim Fast, a joint law enforcement investigation that focused on two drug trafficking organizations, one that operated out of Bridgeport and one that operated out of Bridgeport, Puerto Rico, and Springfield, Massachusetts. In 2010, members of the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force initiated an investigation of narcotics trafficking activity in and around the Marina Village Housing Complex in Bridgeport that focused primarily on the Marina Village Bloods, a violent narcotics trafficking organization. Members of the Marina Village Bloods have been responsible for, or connected to, multiple shootings in Bridgeport.

The evidence at trial established that Reyes, Daniels and others, who were members of the Sex, Money, Murder set of the Marina Village Bloods, sold large quantities of narcotics from an abandoned residence at 105/107 Johnson Street, which is located across from the street from the Marina Village Housing Complex. On multiple occasions, Reyes and Daniels were intercepted over court-authorized wiretaps discussing their narcotics trafficking activities. The wiretapped conversations further revealed that members of the Marina Village Bloods alternately referred to the Johnson Street residence as the “kitchen,” “trap,” or “white house.”

The evidence at trial also established that Reyes, who has multiple previous felony convictions, possessed firearms, including a Taurus .40 caliber handgun that was purchased for him by a co-defendant who had no prior felony convictions.

It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

Judge Arterton has scheduled sentencing for November 26, 2012, at which time Reyes and Daniels face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life for conspiring to distribute narcotics and a maximum term of imprisonment of 20 years for conspiring to maintain a drug-involved premises. Reyes also faces a maximum term of imprisonment of 10 years for being a felon in possession of a firearm.

Reyes and Daniels have been detained since their arrests on January 5, 2011.

As a result of this investigation, 19 individuals have been charged in federal court with various narcotics and firearms related offenses, and law enforcement officers seized approximately four kilograms of cocaine, one kilogram of crack cocaine, a quantity of heroin, an SKS assault rifle, five handguns, and more than $150,000 in cash.

This matter was investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force—which is composed of personnel from the FBI and the Bridgeport, Norwalk, and Trumbull Police Departments—with assistance from the United States Marshals Service; Internal Revenue Service-Criminal Investigation; Drug Enforcement Administration; Connecticut State Police; and Hartford, Stratford, and Stamford Police Departments.

The case is being prosecuted by Assistant United States Attorneys Tracy Dayton, Jonathan Freimann, and Doug Morabito.