Member of Black P-Stones Gang Pleads Guilty to Racketeering Conspiracy and Firearm Charges

NORFOLK, VA—Enrique Omar Hinton, a.k.a. “Rico,” 26, of Newport News, pleaded guilty today to racketeering conspiracy, as well as possessing and discharging a firearm in furtherance of a crime of violence.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; David A. O’Neil, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Tommy E. Miller.
Hinton was charged in a superseding indictment returned on December 9, 2013, with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, possessing and discharging a firearm in furtherance of a crime of violence, and conspiracy to distribute and possess with intent to distribute marijuana. Hinton faces a maximum penalty of 20 years in prison on the racketeering conspiracy charge and a mandatory consecutive sentence of te10n years to life in prison on the firearm charge when he is sentenced on June 26, 2014, in Norfolk.
In a statement of facts filed with his plea agreement, Hinton admitted that he was a member of a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones, which operated as a criminal enterprise located primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News. The Black P-Stones engaged in various criminal activities including murders, robberies, illegal drug trafficking, and obstruction of justice. Hinton joined the gang in approximately 2005 and held the rank of “foot soldier.” As a foot soldier, Hinton sold marijuana for the gang, possessed firearms, attended gang meetings, and planned and participated in the gang’s criminal activities. On December 10, 2008, Hinton and co-conspirators participated in a shooting in Williamsburg to retaliate against a rival gang member who exhibited disrespect toward a co-conspirator’s girlfriend. During the shooting, approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the home’s living room and front door while two people were inside. Hinton further admitted that on July 13, 2009, he testified falsely before a federal grand jury for the purpose of obstructing the grand jury’s investigation of the Black P-Stones and the December 10, 2008 shooting in which he and co-conspirators participated.
The investigation of this case was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department and the James City County Police Department. Assistant United States Attorney Eric M. Hurt and Trial Attorney Louis A. Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.

Racketeering and Arson Charges Filed Against Members of Ironworkers Union

PHILADELPHIA—An indictment (an indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.) was unsealed today and arrests were made in a case charging 10 members of Ironworkers Local 401 with allegedly participating in a conspiracy to commit criminal acts of extortion, arson, destruction of property, and assault in order to force construction contractors to hire union ironworkers. Specifically, the indictment charges RICO conspiracy, violent crime in aid of racketeering, three counts of arson, two counts of use of fire to commit a felony, and conspiracy to commit arson. Eight of the 10 individuals named in the indictment are charged with conspiring to use Ironworkers Local 401 as an enterprise to commit criminal acts. Joseph Dougherty, 72, of Philadelphia, the financial secretary/business manager of Local 401, was one of the eight individuals charged with racketeering conspiracy. The indictment details incidents in which the defendants threatened or assaulted contractors or their employees and damaged construction equipment and job sites as part of a concerted effort to force contractors to hire and pay Local 401 workers, even when those workers performed no function. Among the criminal acts set forth in the indictment is the December 2012 arson of a Quaker Meetinghouse under construction in Philadelphia.
Charged with Dougherty are business agents Edward Sweeney, 55, of Philadelphia; Francis Sean O’Donnell, 43, of Warminster, Pennsylvania; Christopher Prophet, 43, of Richboro, Pennsylvania; William O’Donnell, 61, of Cherry Hill, New Jersey; union members James Walsh, 49; William Gillin, 42; Richard Ritchie, 44; Daniel Hennigar, 53; and Greg Sullivan, 49, all of Philadelphia.
The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent in Charge Edward J. Hanko, Special Agent in Charge John Spratley with the Department of Labor’s Office of Inspector General, and Special Agent in Charge Sam Rabadi with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to the indictment, the defendants had a network of individuals, friendly to the Ironworkers Local 401, to help identify construction projects and job sites where work was being performed without using Local 401 members. The indictment alleges that business agents would approach construction foremen at those work sites and imply or explicitly threaten violence, destruction of property or other criminal acts unless union members were hired. The defendants relied on a reputation for violence and sabotage, which had been built up in the community over many years, in order to force contractors to hire union members. It is alleged that the defendants created “goon” squads, composed of union members and associates, to commit assaults, arsons, and destruction of property. One such squad referred to itself as the “The Helpful Union Guys,” or THUGs.
In the December 2012 arson of the Quaker Meeting House, the indictment alleges that after the contractor refused to hire union ironworkers, defendants Walsh, Gillin, and Hennigar went to the construction site at 20 East Mermaid Lane in Philadelphia. They set a crane on fire and cut steel beams and bolts. In another episode set forth in the indictment, members of Local 401 picketed a construction site near King of Prussia Mall between May and June 2010 because the contractor did not hire union workers. It is alleged defendant Richard Ritchie and three others later resorted to violence when they assaulted some of the non-union workers with baseball bats. In the July 2013 episode, the indictment alleges that defendants Sweeney and O’Donnell, under Dougherty’s direction, set up a picket line and threatened the contractor of an apartment complex under construction at 31st and Spring Garden Streets if he did not hire Local 401 members. According to the indictment, the contractor relinquished his profits and turned the job over to a union-affiliated contractor as a result of the threats.
“While unions have the right to legally advocate on behalf of their members, my office will not tolerate the conduct of those who use violence to further union goals,” said United States Attorney Zane David Memeger. “Union officials and members who commit arson, destroy property, use threats of physical harm, and engage in other acts of violence to extort victims on behalf of their union need to be criminally prosecuted. Today’s indictment makes that clear.”
“The strong-arm tactics we have seen in this case are outrageous and brazen—and an unfortunate blow to the worthy intentions of unionism,” said Hanko. “The fight for workers’ rights may sometimes call for tough tactics, but violence, intimidation, arson, and sabotage are crimes which won’t be tolerated. This investigation has been wide-ranging, but it is far from over. Now that this indictment has been unsealed, we expect to hear from more victims and will aggressively pursue all other leads we receive.”
If convicted of all charges, defendants Dougherty, Sweeney, Walsh, and Gillin each face a mandatory minimum term of 35 years in prison up to a statutory maximum of 130 years; defendant Hennigar faces a mandatory minimum term of 15 years in prison up to a statutory maximum of 40 years; defendant Sullivan faces a mandatory minimum term of five years in prison up to a statutory maximum of 40 years; defendants Prophet and Ritchie face a statutory maximum of up to 40 years in prison; defendants Francis and William O’Donnell each face a statutory maximum of 20 years in prison.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force; East Whiteland Township Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime, and Gang Section at the Department of Justice.

Member of 10th Street Gang Pleads Guilty to RICO Charge

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Daniel Colon, a/k/a Drunk Danny, 28, of Buffalo, New York, pleaded guilty to a Racketeering Influenced Corrupt Organizations (RICO) charge before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant was a member of the 10th Street Gang. On October 17, 2009, Colon participated in the shooting of an associate of a rival gang. The defendant and others drove up alongside the associate in the vicinity of Plymouth and Pennsylvania Street on the West Side of Buffalo and another 10th Street member shot the victim. The shooting was in retaliation for the August 11, 2009 murder of 10th Street Gang member Eric Morrow, which was committed by members of the Cheko’s Crew/7th Street Gang enterprise.
In addition, on January 24, 2010, the defendant and other 10th Street Gang members shot an injured an individual they believed was a member of the rival 7th Street Gang. Later on January 24, 2010, the defendant and other 10th Street members forcibly stole property, including a cellular phone, from two victims on West Avenue, and, in the course of demanding property, another 10th Street Gang member, who was with the defendant, displayed a firearm.
The defendant is among forty four 10th Street Gang members and associates charged in this case. A total of 29 have been convicted.
The plea is the culmination of an investigation on the part of Investigators of the New York State Police, under the direction of Major Michael Cerretto; the Buffalo Police Department, under the direction of Commission Daniel Derenda; and special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for May 23, 2014, at 1:00 p.m. before Judge Arcara.

Correctional Officer and Inmate with Whom She Had Sex Sentenced in Jailhouse Racketeering Conspiracy

BALTIMORE, MD—U.S. District Judge Ellen L. Hollander sentenced correctional officer Taryn Kirkland, age 23, of Baltimore, to 42 months in prison followed by two years of supervised release, and Black Guerrilla Family (BGF) member and commander Steven Loney, age 24, today to nine years in prison followed by three years of supervised release, for racketeering conspiracy arising from the smuggling of drugs for members of the BGF gang inside the Baltimore City Detention Center (BCDC).
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to court documents, BGF has been the dominant gang at the BCDC and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center (which houses many men), and in the Jail Industries Building.
According to their plea agreements, Kirkland worked as a correctional officer at BCDC where BGF member Loney was an inmate. For a time, Loney was a cellmate of Tavon White, the leader of BGF at BCDC. Following his transfer to another section, Loney became the commander of one of two BGF regimes at BCDC, and answered only to Tavon White. Throughout 2011 to 2013, Loney often directed the smuggling of contraband into BCDC by BGF members and associates, especially through the services of correctional officers. Loney became involved in sexual relationships with correctional officers, including Kirkland. Kirkland frequently smuggled contraband, including marijuana and prescription pills, into BCDC on behalf of Loney. Kirkland also helped other correctional officers, such as Jennifer Owens, smuggle drugs into BCDC for other BGF inmates such as Tavon White.
Correctional officer Adrena Rice, age 25, of Baltimore previously pleaded guilty to her participation in the conspiracy and was sentenced on January 8, 2014 to 42 months in prison. BGF leader Tavon White, age 36, also pleaded guilty to the racketeering enterprise and is scheduled to be sentenced on February 20, 2014 at 10:00 a.m. Outside supplier James Yarborough, aka J.Y., age 27, of Baltimore, is scheduled to have a rearraignment tomorrow at 10:00 a.m.
The case arose from the efforts of the Maryland Prison Task Force, a group of local, state, and federal law enforcement agencies and prosecutors that met regularly for more than two years and generated recommendations to reform prison procedures. The investigation is continuing.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration-Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

MS-13 Gang Leader Pleads Guilty to Racketeering

Earlier today, Francisco Ponce, a leader of La Mara Salvatrucha, also known as the MS-13 street gang (MS-13), pleaded guilty at the federal courthouse in Central Islip, New York, to racketeering, including predicate acts relating to the February 15, 2009 armed robbery of the Pollo Campero restaurant in Lindenhurst, New York, and the September 12, 2009 armed robbery of Los Hermanos Grocery in Brentwood, New York, which resulted in the murder of Miguel Peralta, an employee of that grocery. When sentenced, Ponce faces up to life in prison.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office.
“Ponce was in charge of the MS-13 'brand' in New York and sought to strengthen it with acts of mayhem. Seeking funds to fuel their violent lifestyle in New York and abroad, he and his cohorts robbed and terrorized Long Island neighborhoods. Miguel Peralta fell victim to their thirst for blood and money when he unknowingly walked in on a robbery at the store at which he worked,” stated United States Attorney Lynch. “This office and our law enforcement partners will continue to vigorously investigate and prosecute gang members, especially those who terrorize our communities and, as demonstrated in the tragic murder of Mr. Peralta, kill innocent victims.”
FBI Assistant Director in Charge Venizelos stated, “Rather than function as a productive member of society, the defendant instead chose a life of crime, intent on spreading fear and violence throughout our community. The FBI is committed to removing these violent criminals from our streets. We will continue to work with our law enforcement partners to dismantle MS-13 and bring to justice every gang member who victimizes the public.”
According to court filings and facts presented during the plea proceeding, Ponce and two other MS-13 members, Joyser Velasquez, also known as “Baby Boy,”¹ and Carlos Chicas, also known as “Flaco,” carried out the September 12, 2009 armed robbery of Los Hermanos Grocery and the murder of Miguel Peralta. Shortly before midnight, Velasquez and Chicas, who were armed with semi-automatic handguns, entered the store while Ponce waited as the getaway driver. Peralta, who was sweeping a storeroom in the back of the store, heard the commotion, entered the front of the store, and came face to face with Velasquez, who shot him once in the side. Peralta then ran down an aisle where he was confronted by Chicas, who shot him in the head. The robbers then rifled through the cash register, took cash and checks, and fled to the awaiting getaway car that was driven by Ponce.
Several months prior to the Peralta murder, Ponce, Velasquez, and two other MS- 13 members, Wilmer Granillo, also known as “Chele,” and Freddy Fuentes-Gonzalez, also known as “Pitufo,”² committed an armed robbery of the Pollo Campero restaurant in Lindenhurst, New York. Specifically, on February 15, 2009, Velasquez—who was armed with a semi-automatic handgun—Granillo,and Fuentes-Gonzalez entered the Pollo Campero restaurant wearing hooded sweatshirts and ski masks, held the employees at gunpoint, and forced the manager to open the safe by holding a knife to his throat. The MS-13 members stole approximately $15,000 from the safe and then fled to the car, where Ponce was waiting to drive them away.
Ponce’s conviction further demonstrates the strong connection between members of the MS-13 gang in New York, El Salvador, and elsewhere. As set forth in prior court filings and testimony introduced during two recent MS-13 racketeering trials, between 2009 and 2010, Ponce was the New York leader of “The Program,” an initiative by the MS-13’s leadership in El Salvador to exercise greater control over the international MS-13 enterprise, including the MS- 13 cliques and members in New York, enforce discipline and adherence to the gang’s rules, and cause more money to be sent to MS-13 members in El Salvador and other parts of Central America. Ponce functioned as a liaison between the MS-13 clique leaders in New York and the gang’s hierarchy in El Salvador, organizing “universal meetings,” which were meetings attended by the leaders of the New York cliques of the MS-13, and collecting money from the New York cliques to purchase firearms and ammunition, which were used in furtherance of MS-13’s violent agenda and to send money to gang leaders in El Salvador.
Chicas and Granillo, two of Ponce’s co-conspirators in the Peralta murder and Pollo Campero robbery, respectively, are believed to have fled the jurisdiction and remain fugitives.³ The FBI requests that anyone with information regarding their whereabouts telephone (212) 384-1000. Chicas and Granillo should be considered armed and dangerous.
Ponce’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras, and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Carrie N. Capwell.
The Defendant:
FRANCISCO PONCE (“Spoiler”)
Age: 31
Residence: Brentwood, NY
E.D.N.Y. Docket No. 12-063 (JFB)
¹ Velasquez is in custody pending trial. The charges in the indictment against Velasquez are merely allegations, and he is presumed innocent unless and until proven guilty.
² Fuentes-Gonzalez is in custody. He pled guilty and is facing life imprisonment when sentenced.
³ The charges in the indictment against Chicas and Granillo are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

Founder and Leader of Newburgh Latin Kings Sentenced to Life Plus 85 Years in Prison for Murder, Racketeering, Drug Distribution, and Other Crimes

Preet Bharara, the United States Attorney for the Southern District of New York, announced that WILSON PAGAN, 27, the founder and top leader of the Latin Kings gang in Newburgh, New York (the Newburgh Latin Kings), was sentenced today by U.S. District Judge Cathy Seibel in White Plains federal court to life plus 85 years in prison. PAGAN was convicted of murder; racketeering; conspiracy to distribute crack, cocaine, and heroin; assault; and using and carrying firearms in connection with violent crimes. PAGAN is one of 35 members and associates of the gang who were charged in the case, all of whom have been convicted, 28 of whom have thus far been sentenced.
U.S. Attorney Preet Bharara stated: “Mr. Pagan was a gang leader, and what he led his followers to was a gang member’s life filled with death, blood, guns, drugs, and jail—and for him the gangster life in the street has become the inmate’s life in prison, forever. Gang leaders, members, associates, and wannabes in Newburgh and throughout the Hudson Valley need to understand—we will not tolerate gang violence. You will go to prison for it, potentially for the rest of your life.”
According to the indictment and evidence presented at trial:
PAGAN founded the Newburgh Latin Kings, and grew the gang from roughly a dozen members in 2008 to more than 50 members and associates by early 2010. On May 6, 2008, PAGAN ordered aspiring gang members to go on a so-called mission, during which they committed a drive-by shooting and killed, mistakenly, Jeffrey Zachary, a 15-year old boy who was an innocent bystander. PAGAN sold crack and heroin and helped other members and associates of his gang sell drugs, including at spots the Latin Kings controlled, such as the corner of Benkard Avenue and William Street in Newburgh. PAGAN also assaulted rivals of his gang and carried guns and instructed others to carry guns to protect PAGAN and the Newburgh Latin Kings’ drug turf. In leading the gang, PAGAN recruited and inducted new members, instructed the members how to behave in order to protect and conceal the gang’s criminal activities, and issued orders to gang members to shoot and assault others. PAGAN organized and led gang meetings for this purpose. During one such meeting, according to papers filed with the court, PAGAN told more than 20 assembled gang members: “[W]e don’t even live by rules of society... .”

***

Mr. Bharara thanked the Hudson Valley Safe Streets Task Force for their work on the Latin Kings investigation. The Task Force is led by the Federal Bureau of Investigation (FBI), and combines the resources of dozens of law enforcement officers from federal, state, and local agencies and departments, including agents and officers of the FBI; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the City of Newburgh Police Department; Immigration and Customs Enforcement’s Homeland Security Investigations; the Middletown Police Department; the Orange County Sheriff’s Office, and the New York State Police.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Allee, Abigail Kurland, and Nicholas McQuaid are in charge of the prosecution.

Three Aryan Brotherhood of Texas Gang Members Plead Guilty to Federal Racketeering Charges

HOUSTON—Three members of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Sammy Keith Shipman, aka “Stubby,” 31, of Houston, pleaded guilty today before U.S. Judge Sim Lake to one count of conspiracy to participating in racketeering activity.
William David Maynard, aka “Baby Huey,” 43, of Houston, pleaded guilty November 20, 2013. Dustin Lee Harris, aka “Lightning,” 29, of Dallas, pleaded guilty November 19, 2013. Each defendant pleaded guilty to one count of conspiracy to participating in racketeering activity.
According to court documents, Shipman, Maynard, Harris, and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping, and narcotics trafficking on behalf of the ABT gang. The defendants and numerous other ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Shipman, Maynard, and Harris admitted to being members of the ABT criminal enterprise and committing multiple acts of violence and/or narcotics trafficking on behalf of the ABT.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects, and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery, and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for February 20, 2014, Shipman, Maynard, and Harris each face a maximum penalty of life in prison.
Shipman, Maynard, and Harris are four of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 18 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice-Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange, and Waller Counties; police departments in Alvin, Carrollton, and Mesquite Texas; and the Montgomery and Atascosa County District Attorney’s Offices.
The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.

 

Nineteen New Defendants, Including 14 Correctional Officers, Indicted on Charges of Federal Racketeering in Baltimore City Jail Investigation

BALTIMORE—United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore City State’s Attorney Gregg Bernstein; Baltimore Police Commissioner Anthony W. Batts; and Prince George’s County Police Chief Mark A. Magaw announced that a federal superseding indictment was unsealed today charging 19 additional defendants, including 14 former and current correctional officers with the Maryland Department of Public Safety and Correctional Services, with conspiring to operate the Black Guerilla Family (BGF) gang inside correctional facilities. All 19 defendants also are charged with conspiracy to distribute and possession with intent to distribute drugs; and six are charged with money laundering conspiracy.
This brings to 44 the total number of alleged BGF gang members and associates charged in the case, including 27 correctional officers. Sixteen of the 25 defendants in the original indictment in April 2013 have pleaded guilty to racketeering conspiracy, including nine correctional officers, four inmates, and three drug suppliers. One defendant is deceased. Eight defendants charged with racketeering in April 2013 remain in the superseding indictment.
This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services; local, state, and federal law enforcement agencies; and prosecutors. The task force has met regularly for almost three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local, and federal criminal investigators.
“The new charges focus on criminal conduct that occurred prior to April 2013, adding 19 new defendants as a result of additional evidence that came to light during the ongoing investigation,” said U.S. Attorney Rod J. Rosenstein. “I want to thank Secretary Maynard and the many law-abiding employees of the Department of Public Safety and Correctional Services who have assisted in this investigation and are working to eliminate corruption in state correctional facilities.”
“We are grateful to our federal law enforcement partners for their responsiveness, their good work, and their ongoing willingness to work with us as we root out corruption, improve security, and promote integrity at Maryland correctional institutions,” DPSCS Secretary Gary Maynard said. “While our work continues, those indicted out of the task force’s efforts do not represent the overwhelming majority of honest and hardworking correctional officers working every day to keep our institutions safe.”
The superseding indictment and a search warrant affidavit were unsealed today upon the arrests of the defendants and the execution of 15 search warrants. Approximately 150 agents and officers assisted in the arrests and search warrants. The superseding indictment was returned on November 5, 2013, and remained under seal until after the warrants were executed this morning.
The defendants charged in the superseding indictment are alleged to be members or associates of the BGF, a gang active in prisons throughout the United States. According to the indictment, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, especially the Baltimore Central Booking Intake Center, the Women’s Detention Center (which houses many men), and in the Jail Industries Building.
According to the affidavit, the BGF inmates and correctional officers operated a criminal organization within the prison facility, enabling them to make large amounts of money through drug trafficking, robbery, assault, extortion, bribery, witness retaliation, money laundering, and obstruction of justice. “Green Dot” cash cards routinely were used to transfer money. BGF members and associates used the money to bribe correctional officers and other employees at BCDC and related prison facilities to smuggle drugs, cell phones, and other contraband. Correctional officers arranged favored treatment and privileges for imprisoned BGF gang members, thwarted interdiction and law enforcement efforts against BGF inmates, and facilitated attacks on inmates in furtherance of BGF objectives. Gang members and associates extorted protection money from inmates who were non-members, often paid by relatives outside the jail.
The correctional officers allegedly hid drugs and other contraband beneath clothing and inside body cavities when they entered the prison. The correctional officers also smuggled items in their shoes or in sandwiches they brought into the prison. BGF leaders used contraband cell phones to order drugs and other contraband and to coordinate gang activities.
Court documents allege that BGF members recruited correctional officers through personal and often sexual relationships as well as bribes, and that some officers traded sex for money. Officers believed it was unlikely that they would be fired or face significant discipline even if they were caught smuggling contraband or fraternizing with inmates.
The defendants face a maximum sentence of 20 years in prison on the racketeering and drug conspiracies. Thirteen of the defendants face a maximum sentence of 20 years in prison as well for conspiracy to commit money laundering. James Yarborough also faces five years in prison for possession with intent to distribute marijuana.
Most of the defendants are expected to have initial appearances in U.S. District Court in Baltimore this afternoon.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The U.S. Attorney praised the FBI, the Maryland Department of Public Safety and Correctional Services, the Baltimore Police Department, the Prince George’s County Police Department, the Maryland Prison Task Force, and the Baltimore City State’s Attorney’ Office for their work on the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
The U.S. Attorney also thanked the leaders of other agencies that have assisted the Maryland Prison Task Force, including Colonel Marcus L. Brown, Superintendent of the Maryland State Police; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration-Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
The following 19 defendants are newly charged in the superseding indictment unsealed today.
Inmates:

• Russell Carrington, a/k/ Rutt, age 33
• Frederick Morrison, a/k/a Fry, age 29

Current and former correctional officers:

• Kevin Armstrong, age 26, of Gwynn Oak, Maryland
• Clarissa Clayton, age 24, of Brooklyn Park, Maryland
• Tanierdra Finch, age 26, of Baltimore
• Danielle Forrest, age 26
• Aisha Fraction, age 25, Brooklyn
• Sean Graves, age 47, of Windsor Mill, Maryland
• Ricolle Hall, age 26, of Glen Burnie, Maryland
• Angela Johnson, age 34, of Baltimore
• Derrick Jones, age 41, of Aberdeen, Maryland
• Javonne Lunkin, age 28, of Baltimore
• Ashley Newton, age 30, Baltimore
• Travis Paylor, age 26, Baltimore
• Milshenna Peoples, age 29, of Baltimore
• Michelle Ricks, age 43, Edgewood, Maryland

Other DPSCS employee:

• Michelle McNair, age 22, Baltimore

Outside suppliers:

• Raylanair Reese, age 31
• Linnard Wortham, a/k/a Stu, age 29, of Glen Burnie, Maryland

The following eight defendants were charged in the original indictment and remain in the superseding indictment:
Inmates:

• Jamar Anderson, a/k/a Hammer and Hamma Head, age 24, of Baltimore
• Derius Duncan, a/k/a D or Lil D, age 24, of Baltimore
• Joseph Young, a/k/a Monster, age 30, of Baltimore

Current and former correctional officers:

• Antonia Allison, age 27; of Baltimore
• Ebonee Braswell, age 27; of Baltimore
• Chania Brooks, age 28, of Baltimore
• Tiffany Linder, age 27, of Baltimore

Outside supplier:

• James Yarborough, a/k/a J.Y., age 27, of Baltimore

The following 16 defendants were charged in the original indictment unsealed in April 2013 and have pleaded guilty to their participation in the racketeering conspiracy.
Inmates:

• Tavon White, age 36, of Baltimore
• Steven Loney, age 24, of Baltimore
• Kenneth Parham, age 24, of Baltimore
• Jermaine McFadden, age 25, of Baltimore.

Correctional officers:

• Kimberly Dennis, age 26, of Baltimore
• Jasmin Jones, a/k/a/ J.J., age 25, of Baltimore
• Taryn Kirkland, age 23, of Baltimore
• Katrina Laprade, a/k/a Katrina Lyons, age 31, of Baltimore
• Vivian Matthews, age 26, of Essex, Maryland
• Jennifer Owens, a/k/a/ O and J.O., age 31, of Randallstown
• Adrena Rice, age 25, of Baltimore
• Katera Stevenson, a/k/a KK, age 25, of Baltimore
• Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie

Outside suppliers:

• Tyesha Mayo, age 30; of Baltimore
• Tyrone Thompson, age 36, of Baltimore
• Teshawn Pinder, age 24, of Baltimore

Ralph Timmons, Jr., age 35, of Baltimore, was also charged in the original indictment and is deceased.

MS-13 Gang Leader Sentenced to Life in Prison

Earlier today, Carlos Ortega, also known as “Silencio,” a former leader of the Sitios Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13 street gang, was sentenced to life in prison at the federal courthouse in Central Islip, New York. Ortega was convicted, on March 21, 2013, following a six-week trial on all counts of the trial indictment, including racketeering, racketeering cnspiracy, murder, assault with dangerous weapons, and related firearms and conspiracy offenses.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Thomas V. Dale, Commissioner of the Nassau County Police Department.
“Ortega’s journey to federal prison began in El Salvador when he joined MS-13 and continued when he illegally entered the U.S. and chose to maintain his allegiance to the gang. Ortega committed heinous acts of violence in the name of MS-13, cutting a swath of murder from Brentwood to Far Rockaway, all within the span of a few weeks,” stated U.S. Attorney Lynch. “From a suspected rival gang member, to an MS-13 gang member who was not violent enough, there was no room for mercy in the gang’s code of enforcing respect through murder. Today’s life sentence is a fitting end to Ortega’s reign of terror. He will now have the rest of his life to contemplate the just results of his allegiance to the killing machine known as MS-13.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
FBI Assistant Director in Charge Venizelos stated, “The victims were robbed of their futures by the defendant’s senseless killing spree. His cowardly acts have earned him a life sentence. The defendant’s imprisonment should be a reminder to all those who participate in gang activity that violence and victimization of the public will not be tolerated and will be met with the full force of the FBI. The FBI’s Long Island Gang Task Force is committed to ridding the streets of these violent criminals. Our resolve is strong, and we will not stop until every last gang member is brought to justice.”
At trial, the government proved that Ortega, along with his fellow MS-13 gang members, committed two murders and one attempted murder in February and March 2010. First, Ortega was convicted in connection with the murder of 21-year-old David Sandler and the attempted murder of 20-year-old Aaron Galan in Brentwood, New York, on February 17, 2010. Ortega and his fellow MS-13 gang members lured Sandler, whom the MS-13 believed was a member of the rival Latin Kings street gang, to Timberline Drive in Brentwood under the pretext of buying marijuana from him. Once Sandler arrived, Ortega shot him in the face at close range, killing him. Ortega also shot Sandler’s close friend, Galan, who was with Sandler at the time, in the face. Miraculously, Galan survived.
At trial, Ortega was also convicted of the March 17, 2010 murder of Mario Alberto Canton Quijada in Far Rockaway, New York. Quijada, who was a fellow member of the MS-13, was killed because of his reluctance to “put in work,” or attack rival gang members on behalf of the MS-13. On March 17, 2010, Quijada was lured to the beach in Far Rockaway under the guise of attacking rival gang members. Once alone on the beach, the MS-13 gang members tried to shoot Quijada in the head with a semi-automatic handgun, which had been used in several other murders committed by the MS-13, including the murders of a young woman and her 2-year-old son. However, the gun jammed. Undeterred, Ortega and the other MS-13 members set upon Quijada with knifes and machetes and hacked him to death.
Ortega’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang composed primarily of immigrants from El Salvador, Honduras, and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, composed of agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
The life sentence was imposed by United States District Judge Joseph F. Bianco.
The government’s case was prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Carrie N. Capwell.
Defendant:
Carlos Ortega, also known as “Silencio” and “Silent” Brentwood, New York
Age: 24

Mexican Mafia Member Sentenced in Major Racketeering Conspiracy Case

SAN DIEGO—Rudy Espudo, the lead defendant in a major RICO (Racketeering Influenced Corrupt Organizations) and drug trafficking case involving the violent and powerful Mexican Mafia prison gang, was sentenced today by U.S. District Judge Irma E. Gonzalez to 35 years in prison for his role in the conspiracy, which involved drug distribution and crimes of violence.
The sentence reflected Espudo’s role as a validated member of the Mexican Mafia who oversaw the activities of gang members throughout much of northern San Diego County. Espudo engaged in drug trafficking and extortion, as well as profiting from the criminal activity of those gang members who worked under his so-called protection. Espudo pledged to “protect” these criminals as long as they paid their “taxes” to the Mexican Mafia. Such taxes are essentially payments made by gang members and drug dealers to a Mexican Mafia member for the right to conduct their illegal activity free from interference from the Mexican Mafia. In Espudo’s case, those communities included areas of Escondido, Fallbrook and San Marcos.
According to prosecutors, Espudo’s power over the gangs subservient to the Mexican Mafia was pervasive and dramatic. To utter his name invoked celebrity status—but to get on his bad side was to run the risk of ending up beaten and bloodied from a “green light”—an assault order from a Mexican Mafia member on a person or a gang. Under a “green light” every Sureno gang member (which includes most Hispanic gangs in Southern California) must violently attack the person or gang that has been “green lighted.” If they fail to do so, they risk being “green lighted” themselves.
Espudo was convicted of Count One of the August 2, 2012 Indictment—RICO Conspiracy, Count 2—Conspiracy to Distribute Methamphetamine and Cocaine and Count 12—Brandishing of a Firearm During the Commission of a Crime of Violence.
Espudo’s case was part of “Operation Notorious County,” which resulted in eight indictments in January 2012, charging 51 individuals with participating in a federal racketeering influenced and corrupt organization (RICO) conspiracy and other offenses. All 51 indicted defendants were found guilty at trial or pleaded guilty to offenses including firearms (possession, brandishing, and discharge), extortion, robbery, money laundering, and drug trafficking.
Seven defendants who were indicted with Espudo and who were members of the Diablos and West Side gangs, based in Escondido, as well as the Varrio Fallbrook Locos gang (Fallbrook) went to trial in August 2013. All seven of those defendants were convicted at the conclusion of the trial on October 2, 2013 of the RICO conspiracy and various other charges. All but two have been sentenced.
Case Number: 12CR0236-IEG
Defendant

• Rudy Espudo, Age: 41, Escondido, California

Case Number: 12CR0236-IEG
Trial Defendants

• PABLO FRANCO, aka Casper, aka Dwarf, Age: 31, Fallbrook, CA
• JESUS BARRAGAN, aka Chito, Age: 37, Escondido, CA
• FRANCISCO GUTIERREZ, aka Bullet, aka Ammo, Age: 29, Fallbrook, CA
• JULIO SOLORZANO aka Mowgli, Age: 20, Escondido, CA
• HECTOR FERNANDEZ aka Evil, Age: 23, Escondido, CA
• JOSE CORNEJO aka Rabbit, Age 21: Escondido, CA
• HECTOR GARCIA, Studders, aka Muffin, Age: 20, Escondido, CA

Participating Agencies
The case was the product of an 18-month investigation by the North County Regional Gang Task Force (NCRGTF), including agents and officers from the San Diego County Sheriff's Office; Federal Bureau of Investigation; U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Escondido, Carlsbad, and Oceanside Police Departments. The case also involved coordinated support from the San Diego County District Attorney's Office.

Las Vegas Street Gang Member Sentenced to Life in Prison on Racketeering, Murder, Firearm, and Drug Charges

WASHINGTON—A member of the Playboy Bloods street gang was sentenced today to life in prison for the retaliation murder of a man in November 2004 and the armed robbery of a Henderson, Nevada casino in 2002, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
Jacorey Taylor, aka “Mo-B,” 30, who was convicted by a jury in May 2013, was sentenced by U.S. District Judge Robert C. Jones. Taylor was convicted of engaging in a racketeering (RICO) conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute. He is the ninth gang member to be convicted out of 10 charged in a RICO indictment filed in 2008. The remaining defendant, Markette Tillman, 31, is awaiting trial.
Taylor and co-defendants Reginald Dunlap, aka “Bowlie,” and Steven Booth, aka “Stevie-P,” were convicted of participating in the murder of Billy Ray Thomas, who was shot multiple times in the back on the morning of November 1, 2004, as he worked on a car in the parking lot of the Pecos Terrace Apartments while waiting to take his girlfriend to work. The defendants murdered Thomas due to their mistaken belief that Thomas was a member of a rival street gang. According to evidence presented at trial, two car loads of Playboy Bloods members and associates, including Taylor, Dunlap, Booth, and others, drove through known Crip neighborhoods searching for rivals to retaliate against for the murder of Quaza Burns, a leader of the Playboy Bloods. The victim, Billy Ray Thomas, had no gang affiliation.
Evidence produced at trial also showed that on March 21, 2002, Taylor, armed with an AR-15 style assault rifle, and another man armed with an handgun entered the Klondike Casino in Henderson, forced their way behind the casino cage and robbed the casino of over $7,000 in currency.
Dunlap and Booth pleaded guilty to racketeering conspiracy charges during Taylor’s trial and were each sentenced in April 2013 to 20 years in prison. There is no parole in the federal criminal justice system.
According to court documents and evidence produced at trial, the Bloods are a nationally known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area. Other Bloods sets within the Las Vegas metropolitan area include the Piru Bloods and the West Coast Bloods. A subset of the Playboy Bloods is the Full Throttle Clique, a group made up of Playboy Bloods members who engage in acts of violence, including murder. According to evidence presented at trial, Taylor, Dunlap, and Booth were all members of the Full Throttle Clique of the Playboy Bloods. Taylor, along with other Playboy Bloods enterprise members, operated drug houses in the Sherman Gardens Annex (also known as the Jets) and the surrounding areas.
Eight other defendants who have been convicted and sentenced, as follows:

• Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy and was sentenced to 20 years in prison on April 10, 2013
• Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy and was sentenced to 20 years in prison on April 9, 2013
• Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy and was sentenced to six-and-a-half years in prison on December 3, 2010
• Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on October 20, 2010
• Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on September 17, 2010
• Terrence Thomas, aka “Seven,” 40, pleaded guilty to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010
• Sebastian Wigg, aka “Rock,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
• Fred Nix, aka “June P,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010

The cases were investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which includes officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and are being prosecuted by Assistant United States Attorneys Nicholas D. Dickinson, and Phillip N. Smith, Jr. and Kevin L. Rosenberg, Trial Attorney with the U.S. Department of Justice Organized Crime and Gang Section.

Former Detroit Mayor Kwame Kilpatrick, Contractor Bobby Ferguson, and Bernard Kilpatrick Sentenced on Racketeering, Extortion, Bribery, Fraud, and Tax Charges

Former Detroit Mayor Kwame M. Kilpatrick, 43; contractor Bobby Ferguson, 44; and Bernard Kilpatrick, 72, have all been sentenced for their roles in the wide-ranging Detroit public corruption scandal, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by John Robert Shoup, Acting Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation; Randall Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division; Richard Weber, Chief of IRS-Criminal Investigation; and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development-Office of Inspector General.
Kwame Kilpatrick was sentenced to 28 years in federal prison for using his position as mayor of Detroit and Michigan State House Representative to execute a wide-ranging racketeering conspiracy involving extortion, bribery, and fraud.
Bobby Ferguson was sentenced to 21 years in federal prison for being the catalyst at the center of an extortion scheme that netted him millions of dollars in city contracts.
Bernard Kilpatrick was sentenced to 15 months on a charge of subscribing false tax returns. The jury was unable to reach a unanimous decision on the racketeering conspiracy charge.
United States Attorney Barbara L. McQuade stated, “This case is not so much about punishing for the past as it about shaping the future. These sentences will deter other officials from stealing from the people and will attract honest public servants to office.”
In March, Kwame Kilpatrick was convicted by a jury of 24 counts of extortion, mail fraud, tax violations, and racketeering. The jury deliberated for about 14 days before returning the verdicts, concluding a five-month long trial before United States District Judge Nancy G. Edmunds.
The evidence presented at trial established that Kwame Kilpatrick and contractor Bobby Ferguson participated in a racketeering conspiracy to financially enrich themselves, their associates, and their families by using the power and authority of Kwame Kilpatrick's position as mayor of Detroit, as well as his position as a member of the Michigan House of Representatives, to commit extortion, bribery, and fraud, and to defraud donors to nonprofit entities under the control of Kwame Kilpatrick and his associates, including the Kilpatrick Civic Fund, Kilpatrick for Mayor, and the Kilpatrick Inaugural Committee.
At the heart of the conspiracy was a scheme to use the power and authority of Kwame Kilpatrick's office as mayor of Detroit to extort municipal contractors by coercing them to include Ferguson in public contracts and to rig the awarding of public contracts to ensure that Ferguson obtained a portion of the revenue from those contracts. Ferguson obtained at least $73 million in revenues from municipal contracts through this scheme, a portion of which he shared with his co-conspirators.
Evidence showed that during Kwame Kilpatrick's tenure as a representative of the Michigan House and as the mayor of Detroit, Kwame Kilpatrick and Bobby Ferguson obtained more than half-a-million dollars from the state of Michigan and donors to non-profit entities they controlled, including the Kilpatrick Civic Fund, Kilpatrick for Mayor, and the Kilpatrick Inaugural Committee, under the false pretense that the money would be used to better the community or for campaign expenses when, in reality, the money was used for personal or other impermissible expenses, including vacations to luxury resorts, spa treatments, yoga lessons, and golf clubs.
Further evidence showed that during Kwame Kilpatrick's tenure as mayor, he solicited and accepted payments and property valued at over $1 million from persons seeking business with the city or its General Retirement System or police and fire pension funds.
Evidence was also presented that in return for the proceeds from the public contracts Ferguson received, Ferguson kicked back significant sums of cash, items of value, or other benefits to Kwame Kilpatrick. Further evidence was presented that during his tenure as mayor, Kwame Kilpatrick used more than $840,000 cash, derived from the conspiracy, to make deposits into his bank accounts, pay his credit card bills, purchase cashier's checks and clothing, and to repay loans.
As a result of the lengthy and wide-ranging investigation into corruption in the city of Detroit, the government has obtained convictions from 32 other individuals.
The investigation of this case was conducted by agents of the FBI, EPA-CID, and IRS-CID. The case was prosecuted by Assistant U.S. Attorneys Mark Chutkow, R. Michael Bullotta, Jennifer Blackwell, and Eric Doeh.

Member of 10th Street Gang Pleads Guilty to Racketeering Charge

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Sam Thurmond, 25, of Buffalo, New York, pleaded guilty before U.S. District Judge Richard J. Arcara to federal Racketeer Influenced Corrupt Organizations conspiracy (RICO conspiracy) before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2011, Thurmond was a member of the 10th Street Gang. As a part of his involvement in the gang, the defendant participated in the murders of Brandon MacDonald and Darinell Young who were shot and killed on April 17, 2006.
On April 16, 2006, rival 7th Street Gang members were believed to have shot a 10th Street Gang member. In response, Thurmond and other 10th Street Gang members planned to retaliate. On April 17, the defendant and others obtained firearms including several shotguns, a .22 caliber rifle, a .22 caliber handgun, a .44 caliber handgun, and a .380 caliber handgun. The defendant and other 10th Street Gang members and associates then went to the area around 155 Pennsylvania Street where they believed rival 7th Street Gang members involved in the shooting were located. The 10th Street Gang members and associates, including Thurmond, began shooting at the individuals sitting on the porch, and standing near 155 Pennsylvania Street. Brandon MacDonald and Darinell Young, who were not members of the 7th Street Gang, were both shot, and both died as a result of injuries sustained during the shooting.
Thurmond is the 25th 10th Street Gang member or associate who has been convicted in connection with the investigation.
The plea is the culmination of an investigation on the part of investigators of the New York State Police, under the direction of Major Michael Cerretto; the Buffalo Police Department, under the direction of Commission Daniel Derenda; and special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for February 12, 2014, at 12:30 p.m. before Judge Arcara.

Newburgh Latin Kings Leader Jose Lagos Sentenced to 40 Years in Prison for Three Murders

Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOSE LAGOS, a leader of the Latin Kings gang in Newburgh, New York (the “Newburgh Latin Kings”), was sentenced today by U.S. District Judge Cathy Seibel in White Plains federal court to 40 years in prison. LAGOS’ criminal conduct, for which he was sentenced, included three murders, shootings, brandishing firearms, assaults, drug distribution, and other acts of racketeering. LAGOS, 23, is one of 35 members and associates of the gang who were charged in the case, all of whom have been convicted, 26 of whom have been sentenced. The remaining top two leaders of the gang, Wilson Pagan and Christian Sanchez, were convicted at trial of murder, racketeering, firearms, and narcotics offenses, and each faces a mandatory life sentence.
U.S. Attorney Preet Bharara stated: “With this sentencing, and the pending sentencing of Lagos’s two key accomplices, the leadership of the gang that deprived the citizens of Newburgh of their well-being has been decapitated. This result was only accomplished by the unflagging efforts of the federal, state, and local law enforcement personnel and the prosecution team. Today, Newburgh is a safer place but we are not relenting in our efforts to lift the shadow that gangs cast over its streets.”
According to the indictment to which LAGOS pled guilty, statements made during the plea and sentencing proceedings, other court documents, and evidence presented during related trials:
On May 6, 2008, LAGOS, then a leader of the Newburgh Latin Kings, ordered two others to shoot a member of a rival gang, the Bloods. The subordinates followed LAGOS’s orders, but mistakenly shot and killed Jeffrey Zachary, a 15-year-old boy, who had nothing to do with the gang dispute.
On March 11, 2010, LAGOS, then still a leader of the Newburgh Latin Kings, ordered, along with others, two others to shoot a member of the Bloods. The subordinates followed LAGOS’ and the other leaders’ orders, but one of the subordinates, Jerome Scarlett, was instead mistakenly shot and killed.
On March 12, 2010, LAGOS, along with other leaders of the Newburgh Latin Kings, ordered the killing of John Maldonado, whom they suspected had killed Scarlett. LAGOS helped to obtain a gun while other members of the gang plotted the murder. Another member of the gang shot Maldonado, unsuspecting, in the back, killing him.
LAGOS carried out the murders as part of his participation in the criminal affairs of the Newburgh Latin Kings. Among the gang’s criminal objectives was selling drugs, including by controlling corners in the city of Newburgh where they regularly met with drug customers to sell crack, cocaine, heroin, and marijuana. Gang members, and leaders such as LAGOS, conspired together to protect their drug turf, and to attempt to expand the gang’s drug turf, including by using violence to kill, hurt, or intimidate the gang’s rivals or other enemies of the gang.

***

Mr. Bharara thanked the Hudson Valley Safe Streets Task Force for their work on the Latin Kings investigation. The Task Force is led by the Federal Bureau of Investigation (FBI), and combines the resources of dozens of law enforcement officers from federal, state, and local agencies and departments, including agents and officers of the FBI; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the City of Newburgh Police Department; the U.S. Department of Homeland Security, Homeland Security Investigations; the Middletown Police Department, the Orange County Sheriff’s Office; and the New York State Police.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Allee, Abigail S. Kurland and Nicholas McQuaid are in charge of the prosecution.

Attorney Paul W. Bergrin Sentenced to Life in Prison for Murder Conspiracy and Racketeering Offenses

NEWARK, NJ—A New Jersey lawyer who turned his law firm and related corporations into a racketeering enterprise was sentenced today in Newark federal court to life in prison, U.S. Attorney Paul J. Fishman announced.
Paul W. Bergrin, 57, of Nutley, New Jersey, was convicted in March 2013 following a jury trial of all 23 counts on which he was tried—including conspiracy to murder a witness and other racketeering, cocaine, and prostitution offenses.
The jury returned the verdict after two months of trial before U.S. District Judge Dennis M. Cavanaugh, who also imposed sentence today.
“Paul Bergrin’s betrayal of the people he once served, the court, and the rule of law was stunning,” said U.S. Attorney Fishman. “Each criminal choice he made was a step toward life in prison. After all he did to elude punishment for his clients—including orchestrating the murder of witnesses—he could not avoid facing justice for his own crimes.”
According to documents filed in this case, evidence at trial, and statements made in court:
Through his law firm, Bergrin conspired to tamper with witnesses; distribute cocaine; and facilitate drug trafficking, prostitution, and bribery, among other things. He conspired to murder witnesses to protect the drug trafficking enterprise, one of whom was shot to death to prevent him from testifying in court.
As a result of his conviction, Bergrin faced a mandatory sentence of life in prison on each of the following counts: count three, violent crimes in aid of racketeering; count 12, conspiring to murder a federal witness to prevent his testimony at an official proceeding; and count 13, aiding and abetting the murder of a federal witness to prevent testimony at an official proceeding. He also faced a maximum term of life in prison on three other counts.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Deputy Chief John Gay and Assistant U.S. Attorney Joseph N. Minish of the U.S. Attorney’s Office Criminal Division and Steven Sanders of the office’s Appeals Division in Newark.

Texas Leader of Latin Kings Street Gang Sentenced in Indiana to 262 Months in Prison in Racketeering Conspiracy

WASHINGTON—A Texas leader of the Latin Kings street gang was sentenced today in Hammond, Indiana, to serve 262 months in prison for racketeering conspiracy, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.
Dante Reyes, aka “DK,” 41, of Alton, Texas, was sentenced by U.S. District Judge Rudy Lozano in the Northern District of Indiana. In addition to his prison term, Reyes was sentenced to serve three years of supervised release. On March 14, 2013, Reyes pleaded guilty to one count of racketeering conspiracy.
According to the third superseding indictment filed in this case, the Latin Kings is a nationwide gang that originated in Chicago and has branched out throughout the United States, including the state of Texas. The Latin Kings is a well-organized street gang that has well-defined leadership and is composed of regions that include multiple chapters. The third superseding indictment charges that the Latin Kings was responsible for more than 20 murders in southeast Chicago, northwest Indiana, and Big Spring, Texas.
During a co-defendant’s trial, the government presented evidence of several murders committed by members of the Latin Kings. In addition, cooperating defendants testified that the Latin Kings was responsible for distributing more than 150 kilograms of cocaine and 1,000 kilograms of marijuana over the course of the racketeering conspiracy.
During his guilty plea proceeding, Reyes acknowledged that he became a member of the Latin Kings at an early age and ultimately rose to the level of South Texas Regional Inca. He admitted that he attended at least two meetings in Texas with other members of the Latin Kings leadership in order to solidify the relationship between the Latin Kings in Texas and Chicago. Reyes further admitted that on at least one occasion, he traveled to the Chicago area with other Latin Kings members to meet with local Latin Kings leadership.
According to court documents, Reyes distributed cocaine and marijuana to Latin Kings members in Texas. He also distributed cocaine in Michigan through the use of couriers. These couriers traveled from Texas by bus or other vehicles and passed through the Northern District of Indiana while en route.
Twenty-three Latin Kings members and associates have been indicted in this case. Including Reyes, 21 defendants have pleaded guilty, one was convicted by jury, and one remains a fugitive.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; ICE Homeland Security Investigations; the National Gang Intelligence Center; the Chicago Police Department; the Houston Police Department; the Griffith, Indiana Police Department; the Highland, Indiana Police Department; the Hammond, Indiana Police Department; and the East Chicago Police Department.
The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana. Assistant U.S. Attorney Andrew Porter of the Northern District of Illinois and Assistant U.S. Attorney Jeffrey Haag of the Northern District of Texas, Lubbock Division, provided significant assistance.
The third superseding indictment is not evidence of guilt. The defendant who has not been convicted is innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Former Bergen County Democratic Chairman Indicted on Racketeering Charges

NEWARK, NJ—A federal grand jury indicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), today, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official, and extortion, U.S. Attorney Paul J. Fishman announced.
The indictment charges Ferriero, 56, with conducting the BCDO’s affairs through a pattern of racketeering activity. He is also charged with conspiring to promote bribery and distribute bribe proceeds and to commit mail and wire fraud, as well as with one count each of violating the Travel Act and the mail and wire fraud statutes.
Ferriero is expected to make his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on a date to be determined.
“According to the indictment, Joseph Ferriero ran a political organization as a racketeering enterprise, abusing power for profit,” said U.S. Attorney Fishman. “Today’s charges expose years of peddled influence, from grants to building projects to software contracts. Battling political corruption is a constant priority for this office; we will continue to demand honest public service for the people of New Jersey.”
“The conduct alleged in today’s indictment is another unfortunate example of someone misusing their position in our political system for personal gain,” said FBI Special Agent in Charge Aaron T. Ford. “Such conduct tarnishes our political system. Today’s indictment reaffirms the FBI’s commitment to combat public corruption in New Jersey and serves as a stark reminder that those who seek to violate public trust will be held accountable.”
According to the indictment returned today, Ferriero served as the chairman of the BCDO from 1998 until January 2009. From December 2001 until October 2008, he conducted the BCDO’s affairs through a pattern of racketeering activity involving three schemes: the Governmental Grants Consulting (GGC) kickback scheme, the retail and entertainment project bribery, and extortion scheme and the SJC Consulting (SJC) bribery scheme.
Ferriero offered Dennis J. Oury, 63, of Naples, Florida, the then-incoming borough attorney in Bergenfield, New Jersey, a concealed ownership interest in GGC in exchange for Oury’s agreement to exercise official action and discretion in GGC’s favor in Bergenfield. Oury accepted the offer and used his official position to cause GGC to be hired in Bergenfield. A portion of GGC’s proceeds from the borough were ultimately “kicked back” to Oury by Ferriero.
The conduct in this scheme was the subject of an earlier indictment and superseding indictment against Oury and Ferriero. On September 29, 2009, Oury pleaded guilty before U.S. District Judge Stanley R. Chesler to count one of the superseding indictment, charging him with conspiring with Ferriero to defraud Bergenfield through the use of the mails, and count 11, charging him with willful failure to file a tax return. Oury was sentenced by Judge Chesler on November 29, 2012, to three years of probation.
On October 29, 2009, a federal jury found Ferriero guilty of one count of conspiracy and two counts of mail fraud related to the same scheme, but Judge Chesler dismissed the superseding indictment prior to Ferriero’s sentencing after the U.S. Supreme Court’s decision in Skilling v. United States.
Ferriero engaged in the retail and entertainment project bribery and extortion scheme by soliciting payments totaling $1.7 million from a Virginia-based real estate investment trust (the Virginia REIT) that, between 2002 and 2006, was involved in an attempt to develop land owned by the New Jersey Sports and Exposition Authority (NJSEA) in Bergen County.
In 2002, the Virginia REIT agreed to secretly pay a consulting company operated by Ferriero and two of his then-law partners $35,000 a month in exchange for Ferriero’s agreement not to publicly oppose—nor to cause members of the BCDO or other public officials with whom he had influence to publicly oppose—the Virginia REIT’s proposal to the NJSEA. The payments were also in exchange for Ferriero’s assistance in obtaining endorsements, public support, and other official action and inaction in favor of the Virginia REIT from members of the BCDO and other public officials with whom he had influence.
The indictment also alleges that Ferriero accepted bribes in his capacity as BCDO chairman in the course of the SJC bribery scheme. Ferriero agreed with a Nutley, New Jersey-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
The racketeering charge carries a maximum potential penalty of 20 years in prison; the conspiracy charge carries a maximum potential penalty of five years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the mail and wire fraud charges each carry a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, for their work in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig. Criminal investigators from the U.S. Attorney’s Office led the investigation in this case.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.

Hells Angels Member Diamond Dan Bifield Pleads Guilty to Federal Racketeering Conspiracy

COLUMBIA, SC—United States Attorney Bill Nettles stated that Dan Bifield, a/k/a Diamond Dan, of the Hells Angels’ Rock Hell City Nomad Chapter in South Carolina, pleaded guilty to a racketeering conspiracy (Racketeer Influenced and Corrupt Organizations Act, also known as RICO Act-18 U.S.C. §1962). He faces up to 20 years in prison as a result of his RICO plea and will be sentenced in March 2013 by United States District Court Judge Cameron McGowan Currie.
Facts detailed for the court showed that Bifield agreed with co-conspirators to participate in an criminal enterprise. The enterprise’s participants, who were associated through the Rock Hell City Nomad Chapter, engaged in a pattern of racketeering activity across the state from Rock Hill to Lexington, South Carolina. Among other offenses, the group engaged in narcotics trafficking and money laundering. As part of this enterprise, Bifield received kickbacks in return for illegal activity conducted by other members of the criminal enterprise.
This guilty plea arises from a superseding indictment charging 20 members and associates of the Hells Angels with racketeering, racketeering conspiracy, narcotics trafficking, money laundering, robbery, arson, and firearms trafficking. The indictment resulted from a two-year interagency investigation by the South Carolina Hells Angels Task Force (SCHATF), which includes agents and officers from the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Lexington County Sheriff’s Department; Lexington Police Department; Rock Hill Police Department; York County Sheriff’s Office; and the South Carolina State Law Enforcement Division. The case is being prosecuted by Assistant United States Attorneys Jay N. Richardson and James H. May.