New York Business Must Pay $1 Million Fine, Restitution, Money Judgement for Contraband Cigarette Trafficking

Oklahoma Man Also Pleads Guilty to Contraband Cigarette Trafficking

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New York business was sentenced in federal court today for its role in a conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.

In a separate case that arose from the same undercover investigation, a Blanchard, Okla., man pleaded guilty in federal court earlier this week to his role in a conspiracy to traffic in contraband cigarettes.

A.J.’s Wholesale, LLC, of Irving, N.Y., was sentenced by U.S. District Judge Brian C. Wimes. The court ordered AJ’s to pay a $1 million fine. The company also must forfeit to the government $221,550, which represents the proceeds of the offense. The court also ordered the company to pay an additional $535,050 in restitution to the state of New York. Under the terms of the company’s plea agreement, AJ’s is prohibited from selling premium cigarettes for two years.

On Feb. 6, 2014, AJ’s pleaded guilty to participating in a conspiracy to commit wire fraud and traffic in contraband cigarettes from June 2010 to Jan. 26, 2012.

USA v. Bell

In a separate case that arose from the same undercover investigation, a Blanchard, Okla., man pleaded guilty in federal court on Tuesday, July 29, 2014, to possessing and transporting contraband cigarettes. Under the terms of his plea agreement, Bell must forfeit to the government a total of $157,940 that was seized by law enforcement officers.

Robert Dean Bell, 45, of Blanchard, admitted that he traveled from Oklahoma to Kansas City, Mo., on several occasions between August 2011 and January 2012 to purchase untaxed cigarettes. He transported approximately 17,400 cartons of untaxed Marlboro and Newport cigarettes back to Oklahoma. As a result of these transactions, the amount of total excise tax loss to the state of Oklahoma is approximately $275,163.

Under federal statutes, Bell is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

USA v. A.J.’s Wholesale, LLC

AJ’s, a tobacco wholesaler located on a reservation, is not licensed to bring untaxed cigarettes into the state of New York. The company admitted that AJ’s ordered contraband cigarettes from co-conspirators and caused those cigarettes to be transported into New York, knowing that the state excise tax of $4.35 per pack would not be paid as required by state and federal law.

As a result of AJ’s role in this conspiracy, the amount of total excise tax loss to the state of New York was approximately $535,050.

According to the indictment, conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during an undercover operation. Approximately 620,600 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was more than $8 million.

In addition to the federal indictment, the undercover operation resulted in a $3.5 million civil forfeiture. Following the seizures that occurred as a result of the investigation, the U.S. Attorney’s Office started a $3.5 million civil forfeiture case naming the assets taken up to that point. On Oct. 23, 2012, the court entered a default order of forfeiture for more than $2 million seized from bank accounts and by agents, more than 300 cases of seized cigarettes, a 2009 Cessna T206H Stationair aircraft, two 2012 Peterbilt 389 trucks and two 2012 Peterbilt 386 trucks. The seized cigarettes have been sold at auction for $532,500. The 2009 Cessna Aircraft has been sold for $450,000. The four trucks have been sold for the following amounts: $115,000; $115,000; $113,000; and $113,000. The civil case has been stayed pending the resolution of the criminal case.

This case is being prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.

“Aiken Safe Communities”: Two Men Indicted On Federal Gun Charges

COLUMBIA, South Carolina ---- United States Attorney William N. Nettles, stated today that two Aiken men, Jesse James Quarles, 33, and Kenneth Islar, 27, have been indicted by a federal grand jury in separate indictments, charging each with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). During arraignment hearings this last Tuesday morning in federal court in Columbia, the government requested that both men be detained. Quarles and Islar entered not guilty pleas, waived their right to a detention hearing, and remain in custody.

Mr. Nettles stated the penalty for felon in possession is a fine of $250,000 and/or imprisonment for 10 years, plus a special assessment of $100. However, should either Quarles or Islar be classified based on prior criminal history as an Armed Career Criminal, they would be subject to enhanced penalties--a mandatory minimum term of imprisonment of 15 years and a maximum term of life in prison, a fine of $250,000, a five-year term of supervised release, and a special assessment fee of $100. Both cases have been assigned to United States District Court Judge J. Michelle Childs in Columbia, South Carolina.

Launched in early 2013, the Aiken Safe Communities Initiative is a unified, proactive community approach to engage, educate, and encourage recurring offenders to change their behavior and make healthy life choices. The initiative also bands together local, state, and federal law enforcement to expedite the investigation and prosecution of individuals who reoffend, despite opportunities and assistance offered by the community during public notification meetings held at Aiken City Hall to support a law abiding path. From 2012-2013, the city of Aiken experienced an 86% reduction in murders. Earlier this year, the South Carolina Community Development Association presented the city of Aiken with its 2014 Award of Excellence, recognizing community development efforts that have significantly improved the quality of life in the community. Nettles said, “I drove to Aiken and sat in the room with both of these individuals looked them in the eye and promised them that if they were ever found to have a gun I was going to prosecute them. This office is following through on the promise I made to them and to the people of South Carolina”

Both cases were investigated by the Aiken Department of Public Safety, the 2nd Circuit Solicitor’s Office (Aiken, Bamberg, and Barnwell counties), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). These prosecutions as well as the United States Attorney’s Office ongoing commitment to the Aiken Safe Communities Initiative are part of Operation CeaseFire. CeaseFire is a joint local, state, and federal initiative which seeks to prosecute aggressively individuals who unlawfully use, possess, or transfer firearms. Both cases are assigned to Assistant United States Attorney Lance Crick of the Greenville office.

Defendants Sentenced on Theft of Firearms Charge

Project Safe Neighborhood Prosecution

United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Tyree Arvell Monroe, Trayon Alphonse Caulton and Walter J. Porter of Mobile were sentenced following April 2014, guilty pleas to a charge of theft of firearms from a federally licensed firearm dealer. On September 20, 2013, Monroe, Caulton and Porter, along with a juvenile, entered the Quik Pawn on Cottage Hill Road and committed an armed robbery in which they stole elven (11) firearms from the store’s inventory.

Theft from a federal firearms licensee is a violation of Title 18, United States Code Section 922(u). Chief United States District Court Judge William H. Steele imposed the following sentences of imprisonment: Monroe received a sentence of 70 months; Caulton received a sentence of 57 months; and, Porter received a sentence of 63 months. The sentences of imprisonment will be followed by a 3 year term of supervised release.

This case was investigated by Special Agent Wade Vittitow of the Bureau of Alcohol, Tobacco, Firearms & Explosives, following a referral of the case for federal prosecution by the Mobile Police Department.

New Haven Man Admits Illegally Possessing Ammunition

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RICHARD DAVIS, also known as “Quan Bezel,” 20, of New Haven, pleaded guilty on Wednesday, July 30, before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of possession of ammunition by a previously convicted felon.

According to court documents and statements made in court, on January 10, 2014, DAVIS possessed 15 rounds of .22 caliber ammunition. Prior to that date, DAVIS had been convicted of multiple felony offenses, including carrying a pistol without a permit, theft of a firearm and sale of a controlled substance.

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

This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. DAVIS and several associates attended a call-in in November 2012.

DAVIS has been detained since his arrest on February 27, 2014.

Judge Covello scheduled sentencing for October 28, 2014, at which time DAVIS faces a maximum term of imprisonment of 10 years.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the New Haven and West Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.

Indictment for Marijuana Cultivation in Sierra National Forest

FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Jose Antonio Reyna-Chavez (Reyna), 18, of Michoacán, Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, damaging public land and natural resources, and avoiding immigration officers, United States Attorney Benjamin B. Wagner announced.

According to court documents, Reyna was involved in the cultivation of 1,539 marijuana plants in the Blue Canyon area of the Sierra National Forest in Fresno County when he attempted to flee from law enforcement officers. The cultivation operation was within three miles of a public campground and about seven miles from Shaver Lake. The marijuana cultivation caused significant damage to the land and natural resources of the forest. Six large helicopter net loads of material and debris, including fertilizer, propane tanks, and poisons, were removed from the grow site.

This case is the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

Reyna has been ordered detained pending trial and is scheduled for arraignment and plea on the indictment on August 6, 2014.

If convicted of the more serious drug offenses, Reyna faces a minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Man Pleads Guilty to Traveling to Maryland to Engage in Sexual Activity with a Minor

Contacted 13-Year Old Victim Through a Social Networking Site

Gregory King, 28, of Washington, D.C., pleaded guilty today in connection with contacting a 13-year-old girl over the Internet and traveling across state lines to engage in sexual activity with her.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division made the announcement.

King pleaded guilty to one count of coercion of a minor to engage in sexual activity and one count of traveling with intent to engage in illicit sexual contact with a minor.   He was initially charged by indictment on Feb. 14, 2014.

According to King’s plea agreement, on Oct. 9, 2013, he initiated a chat with a girl on a social networking site whose profile indicated that she was 13 years old.  Throughout October and November 2013, King and the victim exchanged sexually explicit photographs and engaged in sexually explicit conversations.  On Oct. 30, 2013, King chatted with the victim about coming to her house in Maryland, telling her that he would take a bus from Washington, D.C.  The victim provided King with her address, but King was not able to get to the victim’s house that night.   King continued to chat with the victim and on Nov. 21, 2013, shortly after the victim’s 14 th birthday, again discussed coming to her home.  King took a bus from Washington, D.C. on the same date and met the victim at her home, where he spent the night.  King was arrested on Jan. 19, 2014.

As part of his plea agreement, King must register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).   Sentencing is scheduled for Oct. 15, 2014, before U.S. District Judge Peter J. Messitte.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.   Led by 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.   For more information about Project Safe Childhood, please visit www.justice.gov/psc .  For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.

This case was investigated by the FBI and the Laurel Police Department.  This case is being prosecuted by Trial Attorney LisaMarie Freitas of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kristi O’Malley of the District of Maryland.