District of Rhode Island

Latest RI Urban Violent Crime Initiative Investigation

PROVIDENCE, R.I. –For the second time in four months, the collaborative efforts of the Rhode Island Urban Violent Crime Initiative, a wide-ranging collaboration of local, state and federal law enforcement and federal and state prosecutors who are targeting violent crime and violent criminals in urban neighborhoods of Rhode Island, has resulted in state and federal criminal charges being brought against numerous individuals.

In February, it was announced that a year-long series of undercover investigations initiated by the Providence Police Department and the DEA, with substantial assistance from local, state and federal law enforcement, and state and federal prosecutors, was targeting the distribution of heroin and crack cocaine and the importation of firearms onto the streets of Providence.  At the time, the Rhode Island Urban Violent Crime Initiative resulted in the arrests of more than 35 individuals and the seizure of at least 15 firearms.

Building on a series of ongoing investigations which began in September 2013 and bolstered by  law enforcement and prosecutors participating in the Violent Crime Initiative,  an FBI Safe Streets Gang Task Force and Providence Police Department investigation, with substantial assistance of the Urban Violent Crime Initiative Task Force, more than two-dozen gang members and associates who are allegedly trafficking cocaine and heroin in Providence and surrounding communities have been charged in federal or state court.

Within the past five days, 14 individuals have been indicted by a Providence Country grand jury on state drug trafficking charges and 11 individuals have been charged by way of indictment of criminal complaint in federal court with trafficking heroin and cocaine.  The federal indictments were for delivery of heroin in excess of 100 grams and conspiracy. The state indictments were for delivery of heroin, cocaine, and conspiracy.  There are several remaining suspects that have warrants issued for their arrest.  Five additional gang members were arrested on state firearm charges during this investigation. Two subjects were also additionally charged with armed robbery with a firearm.  Most of the individuals charged have been identified as members or associates of gangs in and around the South Side of Providence.

"Today- once again- we are proving that when all levels of government and public safety join together to target violent offenders we see substantial results," said Mayor Jorge O. Elorza. "Addressing drug distribution and gang violence is a very high priority for me, and we will continue working with our partners to stop this kind of violent criminal behavior."

“This is another example of federal state and local law enforcement providing a direct focus on specific criminals who chose to cause violence, distribute drugs and create fear in the City of Providence.  This also is a warning to those who wish to engage in drug dealing and violence, this team will be targeting you next,” said Commissioner Steven M. Paré

“This investigation initiated by the Providence Police Department, strikes at the very core of drug, gang, and gun violence in the City of Providence.  It also signifies what can be accomplished by coordinated, interagency efforts to take down violent gang activity. This was another excellent investigation by all involved,” said Colonel Hugh T. Clements, Jr.

“Gang members who try to fill the vacuum left by these arrests should know we will come after them too. Nobody should have to live in the midst of these drug dealing, violent criminals and the FBI hopes this well-coordinated effort will help bring peace to the streets of Providence and its surrounding communities,”  said Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division.

At a news conference announcing the latest round of arrests, United States Peter F. Neronha said, "The arrests we announce today, and those we announced last February, are tied together by one over-arching principle: that if we want to be smart about reducing crime, we have to shape our investigative and prosecutorial efforts in such a way as to have the most impact.   We have to identify those who by their use of violence are keeping those who simply want to work and go to school effectively locked in their homes, and we have to build cases against them before they can do catastrophic harm. "

Mr. Neronha added, "Virtually every one of the charged individuals we are talking about today is a gang member or a gang associate.  They are ready to use violence to achieve their aims, the aims, and however trivial.   That is their creed."

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov

PROVIDENCE, R.I. – Former Rhode Island House Speaker and former Vice-Chairman of the City of Providence Board of Licenses Gordon D. Fox, 53, of East Providence, was sentenced today to 3 years in federal prison for stealing $108,000 donated by campaign supporters to pay for personal expenses; his acceptance of a $52,000 bribe to advocate and move for issuance of a liquor license for an East Side restaurant while serving as Vice-Chairman of the City of Providence Board of Licenses in 2008; and his failure to account for these illegal sources of income on his tax returns.

At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Fox to serve two years supervised release upon completion of his prison term, and to pay $109,000 in restitution. Fox pleaded guilty on March 3, 2015, to wire fraud, bribery and filing a false tax return.

Fox has been ordered to self-surrender to begin serving his prison sentence by July 7, 2015.

An 18-month federal grand jury investigation led by prosecutors from the United States Attorney’s Office and the Rhode Island Attorney General’s Office, and investigators from the FBI, IRS and Rhode Island State Police, included the execution of court authorized search warrants at the former speaker’s home and State House office in March of 2014; the issuance of more than 200 subpoenas; the examination of more than 36,000 bank, government, personal, and campaign records belonging to former Speaker Fox; and forensic examinations of numerous computers and other electronic devices.

United States Attorney Peter F. Neronha commented, "It is a great irony that the man in Rhode Island once most responsible for securing the passage of laws somewhere along the way decided he no longer needed to follow them.  And the laws former Speaker Fox chose not to follow were not just any laws, but rather laws designed to ensure the integrity of the legal and political process.  In short, he violated his oath to the people of Rhode Island.  He promised to do their business, not his own.  His failure to keep that promise has brought him down today, and deservedly so. 

“I want to thank the FBI and IRS Special Agents, Rhode Island State Police Detectives, and the federal and state prosecutors, whose outstanding work has secured justice and ensured that Rhode Island can chart a new path forward.  Hopefully, Rhode Island can take advantage of it."

Attorney General Peter F. Kilmartin said, “From day one, I pledged the resources of my office, and when the allegations surrounding the acceptance of a bribe by Gordon Fox arose, and it was recognized that the federal statute of limitations for that offense had expired, this office made a commitment to the United States Attorney to proceed with the prosecution of that charge in state court if necessary.  The State, working jointly with the United States Attorney, was ready to prosecute the bribery charge had this case not been resolved in Federal Court, and this case now stands as a testament to the commitment of both offices to aggressively prosecute corrupt public officials.”

Attorney General Kilmartin further stated, “Gordon Fox is not the first public official that our two offices have jointly prosecuted. While we can all hope it’s the last time we prosecute a public official, unfortunately history has taught us that it will happen again.  But, let this serve as a warning to all public officials in this state, whether they are the Speaker of the House or a local board member - if you break the law, violate the trust the voters put in you, and abuse your office, you will be held accountable. You can be assured, as can the public, that we stand together, as federal and state prosecutors, with a single purpose, and will continue to work with our prosecutorial and law enforcement partners to ensure justice prevails.”

At the time of his guilty plea, Fox admitted to the Court that from February 2008 until March of 2014, just prior to the execution of federal search warrants at his State House office and home, he repeatedly used money received from campaign donors to pay for personal expenses.  After transferring the money from his campaign accounts to his personal accounts, former Speaker Fox used the money - $108,000 in all - to pay the mortgage on his home, the loan payments on his car, and the balance on his personal American Express card, which he used to make purchases at various retail outlets.  Fox admitted that in order to conceal his fraudulent conduct, he falsified his mandatory Rhode Island Board of Elections filings.   

Additionally, Fox admitted to the Court that in 2008, while serving as an appointed member and Vice-Chairman of the City of Providence Board of Licenses, he accepted a $52,000 bribe from the owners of Shark Sushi Bar and Grill to help secure a liquor license for the establishment. At the time, there was considerable neighborhood opposition to the application. At a hearing in August 2008, Vice-Chairman Fox, pursuant to his agreement with the Shark Bar partners, spoke in detail regarding why the license should be awarded, and moved the Board to approve the Shark Bar’s application. The Board voted to approve the Shark Bar’s application.  

Additionally, Fox admitted to the Court that for the tax years 2008 through 2012, he filed false tax returns, in that he knowingly omitted personal income he received as a result of his receipt of the bribe in 2008 and his fraudulent transfers from his campaign accounts to his personal accounts.

Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division said, “Gordon Fox accepted a bribe, used campaign donations for his own personal use and lied on his tax return. The FBI will continue to go after corrupt individuals like him who abuse their elected office and betray the public’s trust.”

“Public servants are entrusted by all of us to act in the best interests of the citizens they serve,” said Special Agent William Offord, IRS Criminal Investigation. “Gordon Fox betrayed the public’s trust and his sentencing today sends a clear message - corruption at all levels of government will not be tolerated.  IRS-CI will continue to lend our financial expertise to these important prosecutions.”

Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, "I commend all the Troopers, Detectives, FBI and IRS agents as well as the prosecutors from the US Attorney's office and Attorney General's office for their dedication and commitment to justice". 

The case was jointly prosecuted by Assistant U.S. Attorneys Dulce Donovan and Adi Goldstein, and Rhode Island Assistant Attorney General J. Patrick Youngs.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

United States Attorney’s Office
Jim Martin
(401) 709-5357

Rhode Island Attorney General’s Office
Amy Kempe
(401) 274-440 ext. 2234

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov

PROVIDENCE, R.I. – Sarunn N. Phan, 28, of Providence, was sentenced today to 45 months in federal prison for being a felon in possession of a firearm and for violating the terms of federal supervised release on a previous conviction on a federal firearm charge, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

At sentencing, U.S. District Court Judge Mary M. Lisi sentenced Phan to 30 months imprisonment to be followed by 3 years supervised release for being a felon in possession of a firearm; and a consecutive sentence of 15 months in prison for violating the terms of federal supervised release on a previous federal firearm conviction. In June 2009, Phan was sentenced to 24 months in federal prison to be followed by 3 years supervised release for being a felon in possession of a firearm.

Phan will begin serving his federal sentence after completing a two-year sentence that he is currently serving at the Rhode Island Department of Corrections for violating the terms of his state probation on a 2006 conviction for receiving stolen property over $1,500.

According to information presented to the court, late in the evening of April 9, 2014, Providence Police responded to shots fired in the vicinity of Oakland and Dickens Street. Responding officers found eleven .9mm shell casings on the ground and noticed a Jeep Grand Cherokee in the vicinity. About an hour later, officers observed the same vehicle at Douglas Avenue and Eaton Street. The officers affected a traffic stop after observing a traffic violation.

While pulling in behind the vehicle, officers observed an individual in a rear passenger seat toss a large black box into the rear cargo area. Upon arriving at the vehicle, the officers observed an open box with a firearm inside in the rear cargo area. Upon further inspection, officers discovered a .9mm handgun with an empty magazine. They also located a black plastic bag with ten .380mm rounds and a Glock 40 caliber magazine with 8 rounds of ammunition.

According to information presented to the court, Phan admitted to the police that the weapon was his, and he told officers, “It was self-defense.” Phan claimed to police that he had been shot at earlier in the evening.

The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.

The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov

PROVIDENCE, R.I. – Juan C. Maldonado, 31, of Providence, was sentenced on Friday, June 5, 2015, to 36 months in federal prison for participating in a conspiracy to trafficking cocaine, announced United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations for New England.

At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Maldonado to serve three years supervised release upon completion of his prison term. Maldonado pleaded guilty on March 13, 2015, as charged in a federal indictment, to one count of conspiracy to distribute and possess with the intent to distribute cocaine, and one count of attempting to possess with the intent to distribute cocaine.

According to information presented to the court, on July 2, 2014, during an inbound inspection from the U.S. Virgin Islands, Customs and Border Protection agents in Puerto Rico discovered two packages which contained safes, each with 4 kilograms of cocaine inside, addressed to recipients in Providence. One was addressed to a house where the defendant, his girlfriend and his brother, Elix Javier, 24, were living. The second package was addressed to a residence where the defendant’s mother, sister and others were living.

On July 7, 2014, an undercover postal inspector delivered the first package to the address where Juan Maldonado was living.  The postal inspector was greeted at the door by Mr. Maldonado, who called out for his brother who then signed for and accepted the package. Approximately twenty minutes later, Mr. Maldonado and another individual exited the house. Agents seized a black bag Maldonado was carrying. Inside the bag was the package containing the safe and cocaine delivered by the undercover postal inspector. 

Following Maldonado’s arrest, a court authorized search of his residence resulted in the seizure of a shoebox with two digital scales, approximately 80 gross grams of ground up acetaminophen or Tylenol, baggies, and other cutting agents used in the packaging and sale of narcotics.

As agents entered the residence, Elix Javier fled through a back door. He remained a fugitive until his arrest on July 24, 2014, in Lynn, Massachusetts. Elix Javier was acquitted at trial by a jury on March 26, 2015, of one count of conspiracy to distribute and possess with the intent to distribute cocaine and one count of aiding and abetting.

The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.

The matter was investigated by Homeland Security Investigations with the assistance of U.S. Postal Inspectors, R.I. State Police HIDTA Task Force, DEA and Warwick Police Department.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov

PROVIDENCE, R.I. – A federal court jury in Providence today found Alan Bradley, 53, of Middletown, R.I., guilty of driving to endanger death resulting in the death of Newport Navy Detective Frank Lema in September 2013, announced United States Attorney Peter F. Neronha; Leo Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.

According to the government’s evidence, Bradley, who was a civilian production employee on Navy Base Newport, was operating a Navy vehicle on the base on September 26, 2013, when he struck and killed Detective Lema. Lema was standing outside of the Navy public safety building with a fellow Navy law enforcement officer when he was struck. After striking Detective Lima, Bradley’s vehicle continued to travel another 200 feet before stopping on an embankment.

According to the government’s evidence, on at least six occasions between February 2011 and July 2013, Bradley’s personal physician warned Bradley not to drive because he was a risk to both himself and others due to a seizure disorder. The evidence also showed that Bradley was involved in a serious single car crash in 2011in Middletown in which his young son was a passenger. Bradley attributed his seizure disorder as a contributing factor to the cause of that accident.

“As the jury found today, because of the defendant’s reckless and entirely unnecessary operation of a motor vehicle, with full knowledge that he was endangering the safety of others, Detective Lema is no longer with us today.  While I know that today’s verdict can do nothing to ease the Lema family’s loss, I hope that it does provide some sense that justice has been done,” said United States Attorney Peter F. Neronha. “I want to thank the NCIS agents and the Rhode Island State Police Accident Reconstruction Unit, and First Assistant United States Attorney Stephen Dambruch, for their outstanding work in bringing this challenging case to a successful conclusion.”

“On behalf of the United States Navy and the Navy Base Newport community, it is my sincere hope that today’s verdict provides the family of Detective Frank Lema some measure of comfort knowing that the person responsible for the untimely and tragic death of Detective Lema is being held accountable,” commented Leo Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service. “Our thanks to the United States Attorney’s Office, in particular First Assistant United States Attorney Stephen Dambruch, and the Rhode Island State Police for their efforts working side-by-side with agents from NCIS to bring this investigation and prosecution to a successful conclusion.”

Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, "There can be no verdict or sentence that can change what occurred on September 26, 2013, but our system of justice has spoken and the defendant will be held accountable for his actions. On behalf of the men and women of the Rhode Island State Police, we commend the dedication and diligence of the Naval Criminal Investigative Service Agents, members of the State Police Accident Reconstruction Unit and prosecutors from the United States Attorney's Office for their dedication to justice."

Operating a motor vehicle in reckless disregard of the safety of others resulting in the death of another person is punishable by a statutory penalty of up to 10 years in federal prison followed by up to 3 years supervised release and a fine of up to $5,000.

U.S. District Court Judge Mary M. Lisi, who presided over the trial, is scheduled to sentence Alan Bradley on September 17, 2015.

The case is being prosecuted by First Assistant United States Attorney Stephen G. Dambruch.

The case was investigated by Naval Criminal Investigative Service, with the assistance of the Rhode Island State Police.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov

 

PROVIDENCE, R.I. – A federal grand jury in Providence today returned a three-count indictment charging Paul J. Monteiro, a/k/a “Peezy,” 29, of Providence, with allegedly transporting a 14-year-old Rhode Island girl to New Jersey for the purpose of engaging in commercial sexual activity. It is also alleged that Monteiro enticed the minor female to engage in sexually explicit conduct which was video recorded.

Monteiro and the minor female were located in a hotel room in Franklin Township, New Jersey, on April 6, 2015, by agents and officers from Homeland Security Investigations (HSI), the FBI and Franklin Township police. Monteiro was detained by Franklin Township police. The victim, who had been reported missing from a group home in Rhode Island in November 2014, was returned to Rhode Island.

The indictment, which charges Monteiro with one count each of sex trafficking of a minor to engage in a commercial sexual activity, interstate transportation of a minor with the intent that the minor participate in unlawful sexual activity and sexual exploitation of a child, is announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Bruce M. Foucart, Special Agent in Charge of HSI for New England; and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.

According to court documents, on March 23, 2015, Rhode Island State Police detectives received information from the National Center for Missing and Exploited Children that they had received a report that a juvenile female from Rhode Island had allegedly been sexually molested by an adult male she met on Facebook and that the young teen was afraid to end the relationship due to threats of bodily harm.

According to court documents, an investigation by Rhode Island State Police identified the victim of the alleged sexual molestation as being a 14-year-old Rhode Island girl who was reported missing from a group home in Rhode Island on November 20, 2014. A Facebook friend of the missing girl told State Police that the girl had communicated to her that she had traveled to New Jersey with an individual identified as “Peezy.”

According to court documents, on April 6, 2015, Rhode Island State Police tracked a cell phone in the possession of the missing teenager to Franklin Township, New Jersey. Agents from HSI and the FBI, and police officers from Franklin Township located the missing girl and Paul Monteiro in a hotel room in Franklin Township.

Monteiro was arrested by Franklin Township police on New Jersey state charges and detained. A court authorized search of a cell phone belonging to Monteiro resulted in the discovery of a video of Monteiro allegedly involved in a sex act with the 14-year-old girl.

While speaking with the girl, an HSI agent located a Backpage.com advertisement depicting the young girl and a solicitation for male companionship. The girl later confirmed for investigators that she was the person in the picture and that Monteiro allegedly arranged for her to participate in sex acts with at least two individuals who responded to the advertisement.

A federal criminal complaint charging Monteiro with sex trafficking of a child and transporting a child with intent to engage in criminal sexual activity was issued in Rhode Island on May 1, 2015. Monteiro was returned to Rhode Island and appeared in federal court on May 29, 2015, and was ordered detained in federal custody by U.S District Court Magistrate Judge Patricia A. Sullivan.

A criminal complaint and an indictment are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Sex trafficking of a minor to engage in a commercial sexual activity and interstate transportation of a minor with the intent that the minor participate in acts of prostitution is punishable by statutory penalties of up to life imprisonment with a mandatory minimum of 10 years and a fine of up to $250,000. Sexual exploitation of a child is punishable by statutory penalty of 15 to 30 years imprisonment and a fine of up to $250,000.

The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.

United States Attorney Peter F. Neronha acknowledges and thanks Geoffrey D. Soriano, Somerset County, New Jersey, Prosecutor, and prosecutors in his office, for their assistance in ensuring the quick return of Paul Monteiro to Rhode Island for prosecution in U.S. District Court in Providence.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov

PROVIDENCE, R.I. – Benjamin J. Daniels, 38, of Sandy, Utah, was sentenced today in federal court in Providence, R.I., to 34 months in federal prison to be followed by 5 years supervised release for his participation in a conspiracy to ship 239 pounds of marijuana to Rhode Island from Pennsylvania in December 2013.

Benjamin’s brother, Michael Daniels, 33, of Provo, Utah, formerly of Tiverton, R.I., was sentenced on December 18, 2014, to 18 months in federal prison to be followed by 3 years supervised release for his participation in the drug trafficking conspiracy. 

The sentences, imposed by U.S. District Court Chief Judge William E. Smith, are announced by United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.

Benjamin Daniels pleaded guilty on September 14, 2014, to conspiracy to distribute and possess with the intent to distribute fifty kilograms or more of marijuana. Michael Daniels pleaded guilty on August 28, 2014, to conspiracy to distribute and possess with the intent to distribute fifty kilograms or more of marijuana.

According to court files and information presented to the court, in December 2013, HSI agents in Pittsburgh, working with the Customs and Border Protection Air and Marine Division in Riverside, CA, conducted an investigation of a single-engine aircraft located at an airport in New Castle, PA, believed to be involved in the transportation of large quantities of marijuana. A court authorized search of the aircraft resulted in the discovery of twelve sealed boxes marked “Sun Max, Hot Water Solutions” which contained a total of 239 pounds of marijuana. HSI agents determined that Benjamin Daniels arranged to have the packages flown to New England for delivery, either to Benjamin Daniels or a person designated by him.

On December 16, 2013, federal agents followed the shipment from Pennsylvania to North Central Airport in Smithfield, RI. Once on the ground, at the direction of Benjamin Daniels, the boxes were transported to a hotel in Lincoln, RI. At the hotel, HSI agents arrested Michael Daniels as he was loading the boxes into a rented vehicle that he was driving. Agents seized the twelve boxes of marijuana and $4,694 in cash found on Michael Daniels’ person.

A federal arrest warrant was issued for Benjamin Daniels. He was arrested on January 31, 2014, during a traffic stop in Park City, Utah.

The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.

The Rhode Island State Police High Intensity Drug Trafficking Area Task Force and Warwick Police Department assisted in the investigation of this matter.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov

PROVIDENCE, R.I. – Christi Romano, aka Christi Machala, 35, of Smithfield, R.I., pleaded guilty in federal court in Providence today to stealing more than $274,000 from Christa Creations, a toy manufacturer and distributor in Smithfield where she was employed, and that she lied to the FBI during the investigation into the theft, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.

Romano pleaded guilty as charged in a federal indictment returned on October 15, 2014, to seven counts of wire fraud and one count of making false statements.

Appearing before U.S. District Court Judge John J. McConnell, Jr., Romano admitted to the court that between February 16, 2010, and March 26, 2012, she made numerous electronic transfers totaling $274,751.06 from a bank account belonging to Christa Creations to pay her personal credit card debt.

Romano also admitted to the court that during the investigation she falsely stated to the FBI that she did not steal or misapply funds belonging to Christa Creations.

Romano is scheduled to be sentenced on August 25, 2015.

Wire fraud is punishable by statutory penalties of up to 30 years in federal prison and a fine of up to $1,000,000. Making false statements is punishable by statutory penalties of up to 5 years in federal prison.

The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.

The matter was investigated by the FBI, with the assistance of the Internal Revenue Service Criminal Investigation.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
USARI.Media@usdoj.gov

PROVIDENCE, R.I. – Four individuals, including two mail sorters employed at the Providence Processing and Distribution Center, have been charged in U.S. District Court in Providence by way of federal criminal complaints for their alleged roles in a conspiracy to steal U.S. Treasury checks from the mail and either sell them on the street or deposit them in bank accounts opened with stolen or fraudulent personal information. The funds were withdrawn from ATM machines or used to make retail purchases with the use of debit cards.

The investigation by the Providence Police Intelligence and Organized Crime Unit and United States Postal Service (USPS) Office of Inspector General (OIG) included the execution of court authorized search warrants resulting in the seizure of approximately $1.6 million dollars worth of allegedly stolen U.S. Treasury checks and the seizure of more than $165,000 in proceeds allegedly gained as a result of the sale of stolen U.S. Treasury checks and other items allegedly stolen from the U.S. mail.

United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Rafael Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Field Office today announced the arrest and initial appearance in U.S. District Court in Providence of:

Joan Manuel Mustafa, 36, of Providence, on charges of conspiracy, embezzlement, theft of public money (U.S. Treasury checks) and theft of mail;

Erick Vera Garzon, 35, of Providence, on charges of conspiracy, embezzlement, theft of public money (U.S. Treasury checks) and theft of mail;

Brenda Canuelas, 39, of Providence, on charges of conspiracy, theft of mail, theft of government money in excess of $1,000, forging endorsements on Treasury checks in excess of $1,000, bank fraud and aggravated identity theft; and

Secundino Velazquez Tirado, a/k/a Jesus Rivera, 45, of Providence, on charges of conspiracy, theft of mail, theft of government money in excess of $1,000, forging endorsements on Treasury checks in excess of $1,000, bank fraud and aggravated identity theft.

Major David A. Lapatin, Commanding Officer Investigative Division Providence Police Department said, “I commend the Intelligence and Organized Crime Unit of the Providence Police Department.  The investigation led by Sgt. Nicholas Ludovici along with Detectives Andres Perez and Andrew Lawton, who did a fine job developing information and worked that information along with federal agencies, brought down the alleged major organized crime pattern that inconvenienced and hurt so many people of the State of Rhode Island.”

“Mail theft is always a crime, but when it is perpetrated by Postal Service employees and it impacts our veterans and our most vulnerable customers who depend on these checks, it is beyond disgraceful,” stated USPS-OIG Special Agent-in-Charge Rafael Medina.  “The Special Agents of the USPS-OIG will continue to work closely with our local law enforcement partners to vigorously investigate those Postal Service employees who compromise their integrity for personal gain.”

According to court documents and information presented to the court, in September 2014, USPS-OIG agents began investigating the circumstances surrounding a significant number of missing Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The checks were handled by employees at the U.S. Mail Providence Processing and Distribution Center.  The investigation determined that many individual bank accounts were being opened in the name on missing checks, usually in a slightly altered form, by individuals other than the true owner of the check. The stolen checks were deposited in the accounts in amounts ranging from a few thousand dollars to more than $10,000. The accounts were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, or by the purchase of money orders. Most of the bank accounts were opened in Rhode Island. Some were opened in Massachusetts, New York, and in the southeast United States.

According to court documents, independent of the ongoing investigation by USPS-OIG, a Providence Police Intelligence and Organized Crime Unit detective developed information that two postal employees at the Processing and Distribution Center, Joan Manuel Mustafa and Erick Vera Garzon, co-workers on the night shift, were allegedly stealing U.S. Treasury checks from the mail while the mail was being sorted. The detective developed information that Garzon was allegedly selling many of the stolen checks on the street at 20% of face value to local buyers and buyers in New York.

Based on the information developed by the detective, court authorized search warrants were obtained for both Mustafa and Garzon’s residences and were executed on April 16, 2015, with the assistance of agents from USPS-OIG. A search of Garzon’s residence and his vehicle resulted in the seizure of more than 900 U.S. Treasury checks valued at approximately $1.6 million dollars, dozens of gift cards and $33,250 in cash. From Mustafa’s residence detectives and other officers and agents seized $19,650 in cash and assorted Visa gift cards. The next day detectives and agents seized $113,100 from a safe deposit box opened by Garzon.

According to court documents, while detectives from the Providence Police Intelligence and Organized Crime Unit were gathering information on Mustafa and Garzon, USPS-OIG agents were reviewing surveillance photographs and videos from area banks and retail stores in an effort to determine who was responsible for depositing the stolen Treasury checks and withdrawing and spending the pilfered funds. Two individuals were identified as allegedly repeatedly making deposits of stolen Treasury checks, making cash withdrawals and making purchases using funds from the stolen checks. Agents and detectives worked together to identify the individuals as being Brenda Canuelas and Secundino Velazquez Tirado.

Canuelas and Tirado were arrested earlier today on federal criminal complaints and released on unsecured bond following initial appearances before U.S. District Court Magistrate Judge Patricia A. Sullivan.

Joan Manuel Mustafa and Erick Vera Garzon were arrested on April 16, 2015, on federal criminal complaints and released on unsecured bond following initial appearances before U.S. District Court Magistrate Judge Patricia A. Sullivan. Court documents pertaining to their arrest remained sealed per an order of the court until the arrest today of Canuelas and Tirado.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

Federal agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service (USPS) Office of Inspector General (OIG) and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.

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PROVIDENCE, R.I. – Joan R. Nunez, a/k/a Flaco, 35, of Providence, was sentenced on Thursday to 57 months in federal prison for trafficking heroin, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

Nunez was arrested in March 2014 by detectives assigned to the Providence Police Narcotics and Organized Crime Bureau during an investigation into Nunez’s drug trafficking activities. At the time of Nunez’s arrest, detectives seized more than a kilogram of heroin and nearly $20,000 in cash.

At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Nunez to serve three years of supervised release upon completion of his prison term. Nunez pleaded guilty on February 13, 2015, to possession with the intent to distribute more than 100 grams of heroin.

United States Attorney Peter F. Neronha commented, “One can pick up a newspaper in any city in America today and read about the terrible toll taken by heroin use.  Greater Providence, and indeed the entire state of Rhode Island, is no exception; people are dying or nearly dying from heroin overdose at an astonishing rate.  The battle against this danger must be fought on many fronts.  For example, we must continue to take steps to eliminate the over-prescription of and diversion of opioids, which often leads to heroin use and overdose.  So too must we continue to intercept and aggressively prosecute those, like the defendant here, who deal heroin to the addicted.  Providence Police did outstanding work here – work that no doubt saved lives.”

“Once again, the coordinated efforts and partnerships between the Providence Police Department, the DEA, and the U.S. Attorney’s office led to the arrest and conviction of a dangerous criminal,” said Providence Police Chief Colonel Hugh T. Clements, Jr. “The Providence Police Narcotics Bureau will continue to work diligently day in and day out to keep hardened criminals off the streets of our city.”

According to court documents and information presented to the court by the government, in March 2014, as part of an ongoing investigation into the distribution of heroin in the city, Providence Police detectives assigned to the Narcotics and Organized Crime Bureau developed information about Nunez’s drug trafficking activities. The investigation determined that Nunez was using two separate residences in Providence for his drug dealing activities.

On March 18, 2014, while conducting surveillance of Nunez’s activities, detectives watched as Nunez drove up to and entered one of the locations they believed he was using for his drug trafficking activities. Nunez exited the location a short time later and drove away. As they continued their surveillance of Nunez, they watched him drive to a nearby location, pick-up a male who was walking and then dropped him off a short time later. Believing it was likely that a drug dealing transaction had just occurred, detectives stopped and questioned the individual. On his person they discovered 16 packets of heroin which he admitted to having purchased for $1,500. A short time later, Providence Police detectives located and detained Nunez. He was found to be carrying, among other things, $1,613 in cash.

Following Nunez’s arrest, Providence Police detectives executed court authorized search warrants at the two locations the detectives believed he was using for his heroin trafficking activities. At the first location detectives seized nearly 156 grams of heroin and $18,000 in cash. At the second location detectives seized approximately 1,214 grams of heroin.

The Providence Police Narcotics and Organized Crime Bureau was assisted in the investigation by members of the Rhode Island DEA Drug Task Force.

The case was prosecuted by Assistant U.S. Attorney Pamela E. Chin.

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PROVIDENCE, R.I. – A federal court jury in Providence on Thursday convicted Kormahyah Karmue, 40, of Providence, of being the mastermind behind a conspiracy to set fire to an occupied multi-family dwelling he owned at 31-33 Ida Street in Providence in an effort to collect more than $725,000 in insurance payments.

The government’s evidence showed that on November 2, 2013, an individual working at the direction of Karmue and others, intentionally spread gasoline around a third floor apartment inside the Ida Street tenement. The gasoline was inadvertently ignited by a flame from a gas heater before the individual could strike a match. Several occupants in the building, including a family with five young children inside a second floor apartment, fled from the building.

The jury convicted Karmue of conspiracy to commit arson and three counts each of wire fraud and mail fraud, announced United States Attorney Peter F. Neronha, Providence Public Safety Commissioner Steven M. Paré and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

The jury acquitted Karmue of one count of arson.

Three co-defendants in this matter, Nakelee Freeman, 21, of Providence, Abraham Kerkula, 21, of Pawtucket and Gbabia Kollie, 28, of Johnson City, Tenn., previously pleaded guilty to conspiracy to commit arson and arson. They are detained in federal custody and awaiting sentencing.

 United States Attorney Peter F. Neronha commented, “This case demonstrates the lengths to which some will go in pursuit of their own greed.  As a result of this defendant’s conduct, and the conduct of his co-defendants, several innocent people, including five children, could have easily lost their lives.  Arson is an incredibly dangerous crime, and is often difficult to detect, particularly when, like here, those involved use a complicated scheme to conceal it.  Accordingly, those who worked so hard to unravel the scheme – the Providence Fire Department, ATF, and the Assistant United States Attorneys handling the case - deserve tremendous credit.”

 “This conviction is a testament to the strong partnership between the Providence Fire Department, ATF, and the U.S. Attorney’s Office,” said Providence Public Safety Commissioner Steven M. Paré. “It also sends a loud and clear message that arson, especially an arson-for-profit scheme, will not be tolerated in Providence.  Those looking to profit from such a scheme will be prosecuted to the full extent of the law.  I want to thank the Arson Squad and the ATF for running the investigation and the U.S. Attorney’s Office for getting this conviction.”

“Arson is a crime of extreme violence that puts the lives of the public and first responders in grave danger,” commented ATF Boston Field Division Special Agent in Charge Daniel J. Kumor. “ATF is committed with our local, state and federal public safety partners to ensure our communities remain free from the dangerous acts arsonists commit and utilize all the necessary resources to bring these individuals to justice”.

According to the government’s evidence, beginning in early October 2013, Karmue communicated from Liberia with Kollie, convincing him to travel to Rhode Island to set fire to the Ida Street building in an effort to avoid foreclosure and to collect insurance payments. Karmue promised to pay Kollie between $15,000 and $30,000 for his role in the arson-for-profit scheme.

According to the government’s evidence, after arriving in Rhode Island in late October, Kollie changed his mind and decided that he would not set fire to the tenement and returned home to Tennessee. After returning home, Kollie contacted a brother-in-law in Rhode Island, Nakelee Freemen, and enlisted his assistance to help to carry out the arson-for profit scheme in exchange for $7,500.

On November 1, 2013, Freeman contacted Abraham Kerkula and asked him to drive him to a location where he, Freeman, was going to set fire to a building for “a lot of money.” Freeman and Kerkula traveled together to at least two retail outlets where Freeman purchased several items, including a five-gallon gasoline storage container, a one-gallon liquid storage container and gloves. They then traveled to a local supermarket where Freeman filled the larger storage container with gasoline.

According to the government’s evidence, in the early morning hours of November 2, 2013, Kerkula and Freeman drove to the target property. A surveillance camera attached to a nearby building captured images of the vehicle Kerkula was driving as it arrived at the targeted property, drove past the building, then returned and stopped in front of a driveway. Freeman can be seen in the video exiting the vehicle, removing the gasoline container and other items from the vehicle and then entering the property through a side door using keys the evidence showed that he and Kerkula retrieved earlier in the day.

According to the government’s evidence, once inside the building Freeman entered a third floor apartment where he spread gasoline on the floor of a bedroom which was being used for storage and in the kitchen. Before Freeman could finish spreading the gasoline and striking a match to ignite the fuel, the gasoline was ignited by a flame from a gas heater. Freeman fled the building to Kerkula’s vehicle which had moved to at a pre-determined location on a nearby side street. Once inside the vehicle Freeman stated to Kerkula that the fire had not gone as planned, and they fled the area.

Members of the Providence Fire Department’s Arson Squad, who responded to the Ida Street property shortly after Providence Fire Department firefighters, quickly determined that the fire likely was deliberately set.

As the Providence Fire Department, joined by investigators and agents from ATF, continued to investigate the cause of the fire and who was responsible, Karmue began communicating with his insurance carrier seeking payment for damages to the building and for relocation expenses. Over the course of the next several months Karmue was provided three insurance payments for relocation expenses. The building was insured for $725,583.

As a result of information developed by the Providence Fire Department’s Arson Squad and ATF, Freeman and Kerkula were arrested on federal criminal complaints on November 15, 2013, and ordered detained. Gbabia Kollie was removed from an outbound international flight leaving Atlanta for Liberia and arrested by ATF agents on a federal criminal complaint on December 5, 2013. He was returned to Rhode Island and ordered detained.

Karmue, who returned to the United States from Liberia within days of the fire being set, was arrested in Providence on May 27, 2014, and detained in federal custody. He is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith, who presided over the trial, on July 31, 2015.

Conspiracy to commit arson effecting commerce is punishable by statutory penalties of up to 20 years imprisonment and a fine of up to $250,000; wire fraud is punishable by statutory penalties of up to 5 years imprisonment and a fine of up to $250,000; mail fraud is punishable by statutory penalties of up to 20 years imprisonment and a fine of up to $250,000.

The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Richard B. Myrus.

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WASHINGTON – PharMerica Corporation has agreed to pay the United States $31.5 million to resolve a lawsuit alleging that they violated the Controlled Substances Act by dispensing Schedule II controlled drugs without a valid prescription and violated the False Claims Act by submitting false claims to Medicare for these improperly dispensed drugs, the Justice Department announced today. 

“Pharmacies put patients at risk when they dispense Schedule II narcotics, which have the highest potential for abuse of any prescription drug, without a valid prescription from a physician,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Department of Justice’s Civil Division.  “Today’s settlement demonstrates our commitment to the fight against the misuse of controlled substances.”

PharMerica is a long-term care pharmacy that dispenses medications to residents of long-term care facilities, including nursing homes and skilled nursing facilities.  Many of the prescriptions filled by PharMerica are for controlled substances listed in Schedule II under the Controlled Substances Act.  Schedule II drugs, such as oxycodone and fentanyl, can cause significant harm if used improperly and have a high potential for abuse.

The government’s suit alleged that PharMerica pharmacies operating across the country routinely dispensed Schedule II controlled drugs in non-emergency situations without first obtaining a written prescription from a treating physician.  According to the complaint, PharMerica’s actions violated the Controlled Substances Act by enabling nursing home staff to order narcotics, and pharmacists to dispense them, without confirming that a physician had made a medical judgment as to whether the narcotics were necessary and should be administered to the resident.  Under the settlement, PharMerica has agreed to pay $8 million to resolve these allegations. 

The government’s complaint also alleged that PharMerica violated the False Claims Act by knowingly causing the submission of false claims to Medicare Part D for improperly dispensed Schedule II drugs.  The False Claims Act imposes treble damages and penalties for the knowing submission of false claims for federal funds.  PharMerica has agreed to pay $23.5 million to resolve its alleged False Claims Act violations.
“Today’s significant settlement represents a single but critical significant step toward promoting integrity in the administration of public health programs,” said U.S. Attorney James L. Santelle of the Eastern District of Wisconsin.  “This civil litigation and its meaningful resolution demonstrates that our fight against health care fraud is helping to protect all Americans, including the elderly, people with disabilities and other who may be vulnerable to mistreatment and abuse.”

The False Claims Act claims resolved by today’s settlement were originally brought by Jennifer Denk, a pharmacist formerly employed by PharMerica, under the whistleblower provisions of the act, which authorize private parties to sue on behalf of the United States and to receive a portion of any recovery.  The act permits the United States to intervene and take over the lawsuit, as it did in this case with respect to some of Ms. Denk’s allegations.  Ms. Denk will receive $4.3 million as her share of the settlement.

“DEA registrants are responsible to handle controlled substances in compliance with the Controlled Substances Act,” said Special Agent in Charge Dennis Wichern of the Drug Enforcement Administration (DEA) Chicago Field Division.  “Failure to do so increases the potential for diversion and jeopardizes the public health and safety”.

“The DEA is committed to investigating organizations that are not in compliance with the Controlled Substances Act,” said Special Agent in Charge Michael J. Ferguson of the DEA New England Field Division.  “Our obligation is to ensure public safety and public health and we are committed to working with our law enforcement and regulatory partners nationwide to ensure that these rules and regulations are followed.”

 “The legal requirement that narcotics like oxycodone be prescribed by a physician is a crucial patient protection, which is especially important to safeguard the health of the vulnerable elderly and disabled patients in long term care facilities,” said Special Agent in Charge Lamont Pugh of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG).  “Our agency is dedicated to protecting the taxpayer-funded Medicare and Medicaid programs as well as the millions of beneficiaries who rely on those programs for their health and well-being.”

As part of the settlement announced today, the settling defendant has also agreed to enter into a corporate integrity agreement with the HHS-OIG, which obligates PharMerica to undertake substantial internal compliance reforms and to submit federal health care program claims for an independent review for the next five years. 

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.

 The settlement with PharMerica was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office of the Eastern District of Wisconsin, the U.S. Attorney’s Office of the District of Rhode Island, HHS-OIG and the DEA. 

The lawsuit is captioned U.S. ex rel. Denk v. PharMerica Corp., No. 09-cv-720 (E.D. Wis.).  The claims resolved by the settlement are allegations only; there has been no determination of liability.

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PROVIDENCE, R.I. – Ernest Kar, 34, of Providence, was sentenced on Tuesday to 84 months in federal prison for participating in a counterfeit check scheme that defrauded local banks of at least $800,000. Kar was convicted at trial on February 12, 2015, of conspiracy to commit bank fraud and three counts of bank fraud.

At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Kar to serve a consecutive sentence of 9 months imprisonment for violating the terms of supervised release on a prior federal conviction in South Dakota for passing counterfeit checks. Additionally, Kar was ordered to serve a term of 5 years of supervised upon completion of his prison terms and to pay restitution in the amount of $532,152.

Kar’s sentences are announced by United States Attorney Peter F. Neronha; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; Warwick Police Chief Colonel Stephen M. McCartney; Providence Police Chief Colonel Hugh T. Clements, Jr.; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

According to the government’s evidence presented at trial, between October 2010 and January 2014, Kar and his co-conspirators created counterfeit checks via computer, recruited account holders who agreed to have the fake checks deposited into their accounts in exchange for cash, and then made cash withdrawals from the accounts. Many of the counterfeit checks were drawn on the accounts of several legitimate businesses.

On December 16, 2013, during a joint federal and state law enforcement investigation into the fraudulent check scheme, Warwick Police discovered items used to create counterfeit checks, including check stock, a laptop computer, a printer and counterfeit checks, inside a room Kar was staying in at the Motel 6 in Warwick and inside his vehicle. As a result of the investigation, including forensic examinations of the items seized by Warwick Police, a federal arrest warrant was issued for Kar. He was arrested in the Western District of Kentucky on April 28, 2014, and ordered detained and returned to Rhode Island.
Kar is one of nine individuals charged for their participation in the fraudulent check-cashing scheme dubbed “Operation Check-Mate.”

Three co-defendants, Jerry Zeah, 25, Garty Togbasi, 28, and John Sumo, 28, all of Providence, previously pleaded guilty to conspiracy to commit bank fraud and are serving sentences of 30 months in federal prison. A fourth co-defendant, Allarick Hill, 37, of Pawtucket, previously pleaded guilty to conspiracy to commit bank fraud is currently serving a sentence of 37 months in federal prison.

Four other co-defendants in this matter are being prosecuted on state charges in Rhode Island Superior Court.

The federal court cases were prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Sandra R. Hebert.

“Operation Check-Mate” was jointly investigated by the United States Secret Service, Warwick Police Department, Providence Police Department, and Rhode Island State Police.

These charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage and aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local law enforcement partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.

For more information on the task force, please visit www.StopFraud.gov.

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protect worker and community safety, develop “worst case” response plan

PROVIDENCE, R.I. – Mann Distribution, LLC, of Warwick, also known as Mann Chemical, LLC, pleaded guilty in U.S. District Court in Providence on Tuesday to violating the Clean Air Act by failing to develop and implement a Risk Management Plan to minimize the chance of release of hydrofluoric acid from its Warwick facility, and to protect workers, the community, and emergency and first responders in the event of a chemical release or fire.

U.S. District Court Judge Mary M. Lisi imposed a fine of $200,000 and ordered the company to serve a term of 3 years probation for failing to adhere to Environmental Protection Agency (EPA) regulations which require a Risk Management Plan be developed, including a “worst case” response plan. Mann Chemical is also required to issue a public apology.

The guilty plea and sentence is announced by United States Attorney Peter F. Neronha and Tyler Amon, Special Agent in Charge of EPA's Criminal Investigation Division.

"EPA's Risk Management Program has a clear purpose -- to prevent and prepare for releases of toxic and flammable substances that have the potential for catastrophic consequences. The sentence imposed by the court underscores the importance placed on protecting workers, emergency responders and communities," stated Tyler Amon, Special Agent in Charge of EPA's Criminal Program in Rhode Island.

EPA regulations require facilities storing more than 1,000 lbs. of hydrofluoric acid to develop and implement a Risk Management Plan. An EPA inspection in June 2009 determined that Mann Chemical failed to develop and implement a Risk Management Plan while storing 92 drums of hydrofluoric acid in a concentration of 70%. The inventory indicated that each drum weighed 500 pounds, for a total of 46,000 pounds of hydrofluoric acid.

According to a Center for Disease Control and Prevention website, hydrogen fluoride is a chemical compound that contains fluorine. It can exist as a colorless gas or as a fuming liquid, or it can be dissolved in water. When hydrogen fluoride is dissolved in water, it may be called hydrofluoric acid. Hydrofluoric acid is used mainly for industrial purposes, and may cause skin burns, tissue damage and/or respiratory concerns.

The matter was investigated by the U.S. EPA Criminal Investigation Division with the assistance of the REFP Unit of the Office of Environmental Stewardship with EPA's Region 1 office.

The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly and Special Assistant United States Attorney Peter Kenyon of the Environmental Protection Agency.

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PROVIDENCE, R.I. – A federal court jury in Providence today convicted David Alcantara, 32, of Warwick, of being the mastermind behind an elaborate conspiracy to defraud two area banks of nearly $600,000 by using stolen personal identifying information of several unsuspecting individuals, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.

The jury also convicted Alcantara of leading a conspiracy to convert counterfeit $100 bills into real American dollars by making small retail purchases with bogus $100 bills and receiving cash back in Rhode Island, Massachusetts and Connecticut and by returning items purchased with counterfeit $100 bills in exchange for real cash.

The week-long trial concluded today with the jury returning after deliberating for two hours with guilty verdicts, convicting Alcantara of conspiracy to commit bank fraud, eight counts of aggravated identity theft and conspiracy to pass counterfeit money.

According to the government’s evidence, in December 2009 and January 2010, Alcantara’s schemes resulted in the transfer of over $600,000 from bank accounts of legitimate bank customers into accounts fraudulently created as part of the defendant’s scheme with the use of several individuals’ stolen identities. Money was then withdrawn from the fraudulent accounts in the form of cashier’s checks.

In one scheme, Alcantara provided a co-conspirator stolen identifying information belonging to an unsuspecting small business owner in Harrisburg, Pennsylvania. The co-conspirator used that information at a bank branch office in Rhode Island to request a transfer of $250,000 from the business account into a fraudulent account which was previously opened at the same bank. The account was opened using stolen identifying information of an individual who is deceased.

A bank employee was among the co-conspirators who assisted Alcantara in the scheme by gaining approval of a bank supervisor for the transfer of funds from the legitimate business account into the fraudulent account, knowing that the identifying information used was stolen. Once the transfer was completed, money was withdrawn from various branch bank offices around Rhode Island in the form of cashier’s checks by individuals using the deceased man’s stolen identifying information.

In a second scheme, Alcantara provided several co-conspirators with stolen identifying information of unsuspecting individuals which he instructed them to use to establish fraudulent bank accounts at several branch offices of the same bank. Alcantara also provided the co-conspirators with stolen identifying information of legitimate owners of existing accounts at the same bank and instructed his co-conspirators to transfer funds from the legitimate accounts into the fraudulent accounts.

According to the government’s evidence, at the same time that Alcantara was affecting the bank fraud schemes, he reached out to an individual he thought could assist him in obtaining fraudulent Massachusetts drivers licenses. The individual he reached out to was in fact an undercover DEA agent. The DEA agent, working in conjunction with U.S. Secret Service Agents who were investigating Alcantara and the bank fraud schemes and the passing of bogus $100 bills, recorded several conversations he had with Alcantara as he attempted to secure the fraudulent IDs.

Alcantara, who had been free on unsecured bond since his arrest and initial court appearance in February 2014, was ordered detained today by U.S. District Court Judge John J. McConnell, Jr. after the jury returned its verdict. Alcantara is scheduled to be sentenced on August 4, 2015.

Conspiracy to commit bank fraud is punishable by statutory penalties of up to 30 years imprisonment and a fine of up to $1,000,000. Aggravated identity theft is punishable by a mandatory sentence of 2 years imprisonment and a fine of up to $250,000, consecutive to all other sentences imposed. Conspiracy to pass counterfeit money is punishable by a statutory penalty of up to 5 years imprisonment and a fine of up to $250,000.

Three individuals identified as co-conspirators in these matters previously pleaded guilty and scheduled to be sentenced.

Todd Quinter, 37, of Attleboro, Mass., pleaded guilty on March 28, 2012, to one count each of conspiracy to commit bank fraud, bank fraud and identity theft. He is scheduled to be sentenced on May 26, 2015.

Yoryis Luciano, 28, of Providence, the person identified as a bank employee who assisted in the first scheme, pleaded guilty on February 27, 2012, to one count each of conspiracy to commit bank fraud and bank fraud. He is scheduled to be sentenced on May 26, 2015.

Zizi Stevens, 29, of Providence, pleaded guilty on April 5, 2012, to one count each of conspiracy to commit bank fraud, bank fraud and identity theft. He failed to appear in court for sentencing on June 26, 2012. An arrest warrant has been issued for the defendant, who is believed to have fled the country.

The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Lee H. Vilker.

Prosecutors were assisted at trial by paralegal Kellyann Anderson.

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WASHINGTON - A Cranston, Rhode Island, man was sentenced today to prison for tax fraud in the District of Rhode Island, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.

John Fall was sentenced by U.S. District Judge John J. McConnell to serve 30 months in prison and three years of supervised release.  On Jan. 26, after a federal jury trial in Providence, Rhode Island, Fall was convicted of one count of corruptly endeavoring to obstruct and impede the IRS, one count of tax evasion and two counts of aiding and assisting in the preparation and filing of false corporate tax returns.

According to the evidence presented at trial, Fall was a real estate consultant who bought, sold and brokered real estate.  Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., and Broad Street Investments.  Between 1999 and 2010, Fall used numerous nominee entities and business names to conceal his business and financial transactions.  Fall also concealed his transactions using multiple bank accounts, including commingled or “warehouse” bank accounts in at least six states, as well as the entities Comfort Dental and Broad Street Investments.  To further disguise business and financial transactions, Fall used aliases to conceal his ownership and control over his nominee entities.  Fall filed false federal income tax returns for 1998 and 1999, and failed to file tax returns for the tax years 2000 through 2010.  The IRS audited Fall for tax years 1998 through 2000, and assessed taxes due and owing totaling approximately $72,000. 

Fall also caused the filing of false tax returns on behalf of Comfort Dental for the years 2005 through 2007.  Fall caused his wife’s businesses to make payments to various entities that he controlled, which were falsely recorded on the corporate tax returns as deductible business expenses.  When Comfort Dental and Fall’s wife were audited by the IRS in late 2008, Fall attempted to obstruct the audit by attempting to obstruct his wife’s compliance with an IRS summons and by encouraging his wife’s accountant to not provide the IRS with information requested.  Instead, Fall provided false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities.

Acting Assistant Attorney General Ciraolo commended the special agents of IRS – Criminal Investigation, who investigated the case.  Ciraolo also thanked Assistant Chief John Kane and Trial Attorney Jeffrey Bender of the Tax Division, who prosecuted the case, and the U.S. Attorney’s Office of the District of Rhode Island for their substantial assistance.

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PROVIDENCE, R.I. – According to documents filed in U.S. District Court in Providence on Wednesday, Paul Spremulli, 54, of Coventry, R.I., the owner and president of PKS Associates and Temp Depot, temporary employment agencies located in Cranston, is expected to plead guilty to a charge of wire fraud, admitting that he fraudulently applied for and collected approximately $63,789 in Temporary Disability Insurance (TDI) and Unemployment Insurance benefits from the Rhode Island Department of Labor and Training.

United States Attorney Peter F. Neronha and Cheryl Garcia, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations announced today that an investigation by the United States Attorney’s Office and the United States Department of Labor determined that at various times between February 2008 and May 2013, Paul Spremulli allegedly falsely claimed that he had either become incapacitated and was unable to work or that he had been laid off from his own businesses in order to collect TDI benefits and Unemployment Insurance benefits from the State of Rhode Island.

It is alleged in an Information filed with the court that from February 11, 2008 through early September 2008, and again from February 19, 2013 through early May 2013, while working full-time for PKS Associates and Temp Depot, Spremulli fraudulently claimed to the Rhode Island Department of Labor and Training that he was incapacitated and was unable to work. It is alleged that he collected TDI payments totaling $31,245 to which he was not entitled.

Additionally, it is alleged in court documents that from November 19, 2009 through early December 2010, Spremulli fraudulently claimed he had been laid off from PKS Associates and Temp Depot, and that he collected $32,994 in Unemployment Insurance benefits to which he was not entitled because he was working full-time.

The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.

Wire fraud is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000.

Additionally, according to a Plea Agreement filed in this matter, Spremulli is required to pay full restitution in the amount of $63,789 to the State of Rhode Island prior to or on the date of sentencing.

The Rhode Island Department of Labor and Training Fraud Unit, which first discovered the alleged scheme by Spremulli to defraud the state agency, assisted the United States Attorney’s Office and the United States Department of Labor in the investigation of this matter.

An Information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

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PROVIDENCE, R.I. – A federal grand jury in Providence has returned a six-count indictment charging Reginald Chaney, a/k/a “Reggie”, 19, of East Providence, with conspiracy, sex trafficking of a child and transportation of a minor. It is alleged that Chaney conspired to recruit, transport and coerce two minor females to engage in commercial sex acts.

The indictment charges Chaney with conspiracy to commit sex trafficking of a child, conspiracy to transport a minor, and two counts each of sex trafficking of a child and transportation of a minor.

The indictment, returned on Wednesday, is announced by United States Attorney Peter F. Neronha; Rhode Island Attorney General Peter F. Kilmartin; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations for New England; Providence Police Chief Colonel Hugh T. Clements, Jr.; East Providence Police Chief Christopher J. Parella; and Seekonk, Mass., Police Chief Craig A. Mace.

According to information provided to the court previously, on or about January 18, 2015, Reginald Chaney met two young females, ages 15 and 16, and drove them to a residence in East Providence. It is alleged that at the direction of Chaney, photographs were taken of the victims for the purpose of being displayed on Backpage.com. Later that evening the victims were driven by Chaney to a motel in Seekonk, Mass., and the photographs were then posted on Backpage.com.

It is alleged that on several occasions between on or about January 18, 2015, and January 30, 2015, Chaney arranged for meetings between the victims and individuals who responded to advertisements on Backpage.com, offering the victims for the purposes of commercial sexual activity. The meetings allegedly occurred at motels in Seekonk, Mass., and at locations in Providence, Warwick, Charlestown and Narragansett.

Reginald Chaney was arrested in East Providence by East Providence Police on January 29, 2015, based on information developed during an investigation conducted by the Providence Police Department with assistance of Homeland Security Investigations. Chaney is currently being held in Rhode Island state custody as a superior court probation violator on a 5-year suspended sentence imposed on January 14, 2015, on a weapons charge.

An arraignment date in federal court on the indictment returned on Wednesday has not yet been scheduled. An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Conspiracy to commit sex trafficking of a child and sex trafficking by force or coercion of a child is punishable by statutory penalties of up to life in federal prison with a mandatory minimum term of 15 years and a fine of up to $250,000. Conspiracy to transport a minor and transportation of a minor are punishable by statutory penalties of up to life in federal prison with a mandatory minimum term of 10 years and a fine of up to $250,000.

The case is being prosecuted jointly in federal court by Assistant U.S. Attorney Pamela E. Chin and Assistant Rhode Island Attorney General Daniel Carr Guglielmo.

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PROVIDENCE, R.I. – Andres Garay, 28, of Cranston, was sentenced today to 69 months in federal prison for trafficking more than 100 grams of heroin and for violating the terms of his federal probation on a previous drug trafficking conviction.

Garay pleaded guilty on January 23, 2015, to one count of possessing with the intent to deliver more than 100 grams of heroin. At the time of his arrest in June 2014, Garay was serving a term of five years federal probation imposed in August 2011, for possession of cocaine with the intent to distribute.

Garay’s sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

According to information presented to the court, on June 25, 2014, Providence Police encountered Garay outside a residence and he was found to be in possession of two glassine packets of heroin. A subsequent investigation at the scene led Providence Police to believe that additional quantities of heroin may be stored inside that residence. A court authorized search of the residence resulted in the seizure of 1,850 glassine packets containing various amounts of heroin, two coffee grinders with a total of more than 118 grams of heroin, and various items used in the packaging and distribution of heroin.

Garay has been detained since his arrest on June 25, 2014.

The case was prosecuted by Assistant U.S. Attorney Adi Goldstein.

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PROVIDENCE, R.I. – Mathew S. Antignano, 31, of Bristol, faces a minimum of 5 years and up to 30 years in federal prison when he is sentenced in June following his guilty plea in federal court in Providence today to one count each of possessing child pornography and distributing child pornography, announced United States Attorney Peter F. Neronha, Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police, and Coventry Police Chief Bryan J. Volpe.

According to information presented to the court, Antignano was arrested in July 2014 following an investigation by the Rhode Island State Police Internet Crimes Against Children (ICAC) task force which determined that Antignano had downloaded and shared numerous files of child pornography.

According to information presented to the court, a Coventry Police Department detective assigned to the ICAC task force was investigating activity on a peer-to-peer file-sharing network when he detected an IP address used by Antignano sharing files of child pornography. Based on information developed by the Coventry Police detective and other members of the ICAC task force, a search warrant was issued and executed at Antignano’s residence. The search resulted in the seizure of a laptop computer, tablet and digital storage devices. A forensic examination of the electronic equipment seized resulted in the discovery of approximately 7,750 images and 180 videos depicting child pornography.

Antignano, who was arrested on July 27, 2014, and who is presently detained in federal custody, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 30, 2015. Distribution of child pornography is punishable by a statutory minimum sentence of 5 years imprisonment and a maximum sentence of 20 years imprisonment, a fine of up to $250,000, and a term of supervised release of between 5 years and up to life; possession of child pornography is punishable by a statutory penalty of up to 10 years imprisonment, a fine of up to $250,000 and a term of supervised release of between 5 years and up to life.

The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

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PROVIDENCE, R.I. – Two Providence, R.I., men have been charged by way of federal criminal complaints with allegedly trafficking and transporting a 14-year old female for sex in Rhode Island and Massachuetts, announced United States Attorney Peter F. Neronha, Bruce M. Foucart, Special Agent in Charge of Homeland Security (HSI) Investigations for New England, Warwick Police Chief Colonel Stephen M. McCartney and Seekonk, Mass., Police Chief Craig A. Mace.

It is alleged in court documents that Franklin Liberto, 20, and Mackenzy Scott, a/k/a Bangazz, a/k/a Mackenzy Chandler Scott, a/k/a Banks, 19, participated in a conspiracy to traffic and to transport a 14 -year-old Rhode Island girl with the intent to engage in criminal sexual activity in Rhode Island and Massachusetts in December 2014, and in January and February 2015.

Liberto and Scott are charged with one count each of sex trafficking of a child, conspiracy to commit sex trafficking of a child, transportation of a minor with the intent to engage in sexual activity and conspiracy to transport a minor with the intent to engage in criminal sexual activity.

According to court documents, it is alleged that the victim was trafficked for sex at motels in Warwick, R.I., and Seekonk, Mass., and was driven to several locations in Rhode Island for the purpose of being trafficked for sexual activity. It is alleged that advertisements depicting the teenage girl and offering her for sexual activity were placed on the website Backpage.com.

The victim, who had been reported missing by her family, was located by a family member at a Warwick motel on December 31, 2014. The victim was rescued by responding officers and detectives from the Warwick Police Department.

On February 6, 2015, agents from Homeland Security Investigations and Warwick Police Department detectives who were jointly investigating this matter became aware that the victim was missing from her Rhode Island residence. Among the steps taken by HSI agents and Warwick detectives to attempt to locate the young girl was to provide a photograph of the missing teenager to the Seekonk, Mass., Police Department, who began checking local hotels and motel for the missing girl. The missing girl was located at a Seekonk motel and was removed by Seekonk police.

Franklin Liberto, who had been detained in custody in Massachusetts since his arrest in February, made an initial appearance in U.S. District Court in Providence before Magistrate Judge Lincoln D. Almond on April 2, 2015, and was ordered detained. Liberto was ordered released by the court on April 7, 2015, on home confinement with GPS monitoring.

Mackenzy Scott, who had been detained in custody in Massachusetts since his arrest in February, made an initial appearance in U.S. District Court in Providence today before U.S. District Court Magistrate Judge Lincoln D. Almond and was ordered detained in federal custody.

A federal criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.

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PROVIDENCE, R.I. – The owners and operators of NBP Multiservices (NBP), a tax preparation business in Cranston, R.I., have been sentenced to federal prison for stealing personal identifying information of more than 300 minors named as dependents on legitimate tax returns their company prepared and then selling the information to other tax filers for use on their tax returns in order to increase tax refunds, announced United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Ted A. Arruda,  Resident Agent in Charge of the Providence Office of the U.S. Secret Service.

Tashia Bodden, 37, of Cranston, was sentenced today by U.S. District Court Judge Mary M. Lisi to 36 months in federal prison to be followed by 2 years supervised release; Evelyn Nunez, 40, of Providence, was sentenced on March 18, 2015, by U.S. District Court Judge Mary M. Lisi to 30 months in federal prison to be followed by 2 years supervised release. The defendants were also ordered to pay restitution to the IRS in the amount of $1,402, 560 (joint and several).

The defendants, who were arrested in September 2014 by agents from IRS Criminal Investigation and the U.S. Secret Service, pleaded guilty on December 9, 2014, to one count of conspiracy to defraud the government and one count of aggravated identity theft.

According to court documents, the Scheme Development Center, a division of the IRS, conducted an analysis of tax returns prepared by individuals working at NBP and identified questionable use of children being claimed as dependents. The use of the dependents led to the refunding by the IRS of hundreds of thousands of dollars under the Earned Income Credit available to low income taxpayers.

According to court records and information presented to the court, an investigation by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Attorney’s Office revealed that between January 2008 and February 2012, taxpayers purchased false dependents for approximately $600 - $700 per dependent. The investigation determined that the defendants falsely claimed children as foster children, nieces and nephews of the taxpayers when, in reality, they had no relation to the taxpayer.

The cases were prosecuted by Assistant U.S. Attorney Lee H. Vilker.

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PROVIDENCE, R.I. – According to documents filed today in federal court in Providence, Mann Distribution, LLC, of Warwick, also known as Mann Chemical, LLC, is expected to plead guilty to a federal charge of violating the Clean Air Act for failing to develop and implement a Risk Management Plan to minimize the chance of release of hydrofluoric acid from its Warwick facility, and to protect workers, the community, and emergency and first responders in the event of a release or fire involving the chemical.

At sentencing, the court will be asked to impose a fine of $200,000 and to order the company to serve a term of 3 years probation for failing to adhere to Environmental Protection Agency (EPA) regulations which require a Risk Management Plan be developed, including a “worst case” response plan.
According to a Center for Disease Control and Prevention website, hydrogen fluoride is a chemical compound that contains fluorine. It can exist as a colorless gas or as a fuming liquid, or it can be dissolved in water. When hydrogen fluoride is dissolved in water, it may be called hydrofluoric acid. Hydrofluoric acid is used mainly for industrial purposes, and may cause skin burns, tissue damage and/or respiratory concerns.

EPA regulations require facilities storing more than 1,000 lbs. of hydrofluoric acid to develop and implement a Risk Management Plan. An EPA inspection in June 2009 determined that Mann Chemical failed to develop and implement a Risk Management Plan while storing
92 drums of hydrofluoric acid in a concentration of 70%. The inventory indicated that each drum weighed 500 pounds, for a total of 46,000 pounds of hydrofluoric acid.

The guilty plea was announced by United States Attorney Peter F. Neronha and the Environmental Protection Agency Criminal Investigation Division Boston Area Office.

A sentencing hearing has not yet been scheduled. A Plea Agreement filed with the court stipulates that at sentencing the Government and Mann Chemical will recommend that the court impose a fine of $200,000. In addition, Mann Chemical will be required to issue a public apology. 

The matter is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly and Special Assistant United States Attorney Peter Kenyon of the Environmental Protection Agency.

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PROVIDENCE, R.I. – Kendall Ferrara, 33, of Providence, faces up to 20 years in federal prison and a fine of $1,000,000 when he is sentenced in July, having pleaded guilty today in U.S. District Court in Providence to trafficking cocaine, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.

Appearing before U.S. District Court Judge Mary M. Lisi, Ferrara pleaded guilty to one count of distribution of cocaine. At sentencing on July 16, 2015, Ferrara faces statutory penalties of up to 20 years imprisonment to be followed by 3 years to lifetime supervised release, and a fine of up to $1,000,000.

According to court documents and information presented to the court, an undercover FBI Safe Streets Task Force investigation into drug trafficking activities in and around Providence in the fall of 2014 included five purchases of cocaine of varying amounts from Ferrara during a five-week period of time. The purchases totaled nearly 59 grams of cocaine.

Ferrara was arrested by members of the FBI Safe Streets Task Force on February 23, 2015.

The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.

The FBI’s Safe Streets Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, Johnston and Central Falls Police Departments and the RI Adult Corrections Institutions.

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PROVIDENCE, R.I. – An ongoing investigation by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Attorney’s Office has resulted in the arrest and detention of Antonio Fortes, 24, of Cranston, on federal drug trafficking and firearm charges, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof ATF.

Fortes, who was arrested on Wednesday by ATF agents following a search of his residence and the seizure of crack cocaine, heroin and a .45 caliber handgun, was ordered detained on Thursday by U.S. District Court Magistrate Judge Lincoln D. Almond. A federal criminal complaint charges Fortes with one count each of possession with the intent to distribute heroin, crack cocaine, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.

According to information presented to the court, it is alleged that Fortes is a member or an associate of the YNIC street gang.

According to court documents, an investigation into Fortes alleged drug trafficking activities, which included controlled purchases of crack cocaine and repeated surveillance by law enforcement, culminated with the execution of a court authorized federal search warrant at his residence on Wednesday. The search resulted in the seizure of numerous packets of heroin, crack cocaine, a loaded .45 caliber handgun and additional ammunition, and items used in the preparation and packaging of illegal narcotics.

Possession of crack cocaine with the intent to distribute and possession of heroin with the intent to distribute are punishable by a statutory penalties of up to 20 years in federal prison and a fine of up to $1,000,000; being a felon in possession of a firearm is punishable by statutory penalties of up to 10 years imprisonment and a fine of $250,000; and possession of a firearm in furtherance of a drug trafficking crime is punishable by statutory penalties of a minimum of 5 years and up to life in federal prison, to be served consecutive to any other sentence imposed, and a fine of up to $250,000.

The case is being prosecuted by Assistant U.S. Attorneys Milind M. Shah and William J. Ferland.

Law enforcement officers from the Cranston, Pawtucket and Providence Police Departments assisted in the investigation of this matter.

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PROVIDENCE, R.I. – Tyronne Seams, 29, of Woonsocket, pleaded guilty in federal court in Providence on Tuesday to his role in a September 2013 armed robbery at a Woonsocket residence, during which time he and an accomplice allegedly fired their weapons at the occupants, assaulted at least one person, and fled with a bag of cocaine and a firearm they allegedly stole from one of the occupants, announced United States Attorney Peter F. Neronha and Woonsocket Police Chief Thomas S. Carey.

Seams, who pleaded guilty as charged in a three-count indictment to one count each of conspiracy, Hobbs Act robbery and discharging a firearm in furtherance of a crime of violence, faces a statutory penalty of a minimum of 10 years up to life imprisonment when he is sentenced on June 12, 2015, by U.S. District Court Chief Judge William E. Smith.

Appearing before Chief Judge William E. Smith on Tuesday, Seams admitted to the court that on September 12, 2013, he conspired with David Bunnell, 22, of Franklin, Mass., to plan the robbery of a Woonsocket residence in order to acquire drugs. Soon after, Seams admitted, armed with a handgun and a double barrel shotgun, the two men broke into the intended apartment.

Once inside the apartment, Seams admitted to the court, he and Bunnell fired their weapons at or near the occupants of the apartment. Seams admitted that after subduing the occupants, he grabbed a gun from one of the occupants, assaulted one of the occupants and demanded to know where drugs could be found. Seams admitted that he located and took a bag containing cocaine and then fled with the drugs and the gun taken from one of the residents.

According to court documents, inside a second floor apartment Woonsocket Police Department officers discovered a substantial amount of blood; numerous spent shell casings from at least two firearms; bullet holes in the kitchen counter, bathroom door and bathroom wall; an individual with a head wound from blunt force trauma; and materials associated with the preparation and sale of drugs.

Bunnell, who has been detained along with Seams since their arrest by Woonsocket Police on October 19, 2013, is awaiting trial on charges of one count each of conspiracy, Hobbs Act robbery and discharging a firearm in furtherance of a crime of violence.

An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

 The cases are being prosecuted by Assistant U.S. Attorney Milind M. Shah.

Woonsocket Police Department officers and detectives were assisted in the investigation of this matter by agents and officers from ATF, the DEA Drug Task Force, Rhode Island State Police, North Smithfield Police Department and the Franklin and Blackstone, Mass., Police Departments.

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PROVIDENCE, R.I. – Kevin Bates, 38, of Attleboro, Mass., pleaded guilty in federal court in Providence on Tuesday to being an armed drug trafficker, and faces statutory penalties of up to life in federal prison when he is sentenced in June, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

 Bates was arrested by Providence Police in October 2013, after a routine traffic stop resulted in the discovery of nearly 245 grams of cocaine and a loaded firearm in Bates’ vehicle.

According to court documents, shortly after midnight on October 19, 2013, Providence police, who had increased patrols on the East Side because of a spate of thefts, saw a car slowly circling in the area. The car repeatedly failed to indicate its turns with a turn light or signal.   Due to the traffic violations and the late night circling in the residential neighborhood, police stopped the car.  As detectives approached the car, Bates appeared startled and nervous. Detectives saw Bates reaching down beneath the driver's seat.  

A search of the vehicle resulted in the discovery of a plastic bag containing nearly 245 grams of cocaine, a loaded .380 caliber handgun under the front seat and $2,500 in cash. Bates admitted to police and to the court that the firearm was his, and that he had purchased it for $500 for protection. The firearm had previously been reported stolen.

Bates, who previously was convicted of drug trafficking and firearm charges, pleaded guilty on Tuesday to one count each of possession of cocaine with the intent to distribute, being a felon in possession of a firearm and being in possession of a firearm in furtherance of a drug trafficking crime.

Bates, who faces statutory sentences of up to 30 years in prison for possession of cocaine with the intent to distribute and being a felon in possession of a firearm, and a statutory consecutive sentence of a maximum of life imprisonment with a mandatory minimum term of 5 years imprisonment, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on June 12, 2015.

The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.

The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.

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PROVIDENCE, R.I. – Ricky Wallace, a/k/a Justice, 33, of Pawtucket, R.I., pleaded guilty in federal court in Providence on Monday to trafficking a 17-year-old woman from the Boston area to Pawtucket for the purposes of commercial sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; Pawtucket Police Chief Paul King; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; United States Marshal Jamie A. Hainsworth; and Arlington, Mass., Police Chief Frederick Ryan.

Wallace admitted to the court that in addition to trafficking the 17-year-old, he also brought a 20-year-old woman from the Boston area to Rhode Island where she posed in photos posted on Backpage.com and offered her for commercial sexual activity.

According to court documents, the 17-yerar-old victim was taken from South Station in Boston in the early morning hours of August 19, 2014, and driven to Rhode Island for the purposes of being trafficked for commercial sexual activity. According to the victim, she was driven to the same Pawtucket residence where she was located on August 25, 2014, and rescued by FBI agents, Pawtucket Police and Central Falls Police, after she contacted a group home in the Boston area in which she resided. The group home contacted the FBI.

Additionally, according to court documents, on August 22, 2014, Wallace offered a 20-year-old Boston area woman a ride from South Station in Boston to nearby Cambridge, Mass. Instead of driving her to Cambridge, she was driven to Pawtucket and then to a motel in Seekonk, Mass., where she was photographed and offered on Backpage.com for commercial sexual activity. The woman repeatedly asked that she be driven back to the Boston area. The next day the woman was able to get away from Wallace and had contact with Seekonk Police. Rhode Island State Police also assisted in the investigation.

Appearing before U.S. District Court Judge Mary M. Lisi, Wallace pleaded guilty to one count each of conspiracy, sex trafficking of a child, transportation of a minor for sexual activity, and two counts of transportation of an individual for sexual activity.

Wallace, who has been detained since his arrest on August 29, 2014, is scheduled to be sentenced on June 25, 2015.

The case is being prosecuted in federal court by Assistant U.S. Attorney Pamela E. Chin. The U.S. Attorney’s Office is also working in conjunction with the Rhode Island Department of Attorney General in the prosecution of this matter. Wallace also faces charges in Rhode Island state court in an unrelated matter.

The FBI, Pawtucket Police and Rhode Island State Police were assisted in the investigation of this matter by the United States Marshal Service and the Arlington, Mass., Police Department.

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PROVIDENCE, R.I. – The United States Court of Appeals For the First Circuit in Boston today affirmed the sentence of 50-years in federal prison imposed on Donald J. Jones, III, on charges of interstate travel to engage in illicit sexual acts with a minor, aggravated sexual assault, enticement of a minor, and distribution of child pornography. Jones was convicted by a jury at trial in May 2012. U.S. District Court Chief Judge William E. Smith imposed a sentence of 50-years in prison on September 11, 2014.

Today’s Appellate Court decision, the government’s motion for summary disposition and press releases issued at the time of Jones’ conviction and sentencing hearing are attached.

Assistant U.S. Attorney Donald C. Lockhart represented the Government in this matter before the United States Court of Appeals For the First Circuit.
The case was prosecuted in U.S. District Court in Providence by First Assistant United States Attorney Stephen G. Dambruch and Assistant U.S. Attorney Leslie J. Kane.

No. 14-2037
UNITED STATES, Appellee, v.
DONALD J. JONES, III, a/k/a Don Juan, Defendant, Appellant.

Before
Torruella, Howard and Barron, Circuit Judges.
__________________

Entered: March 23, 2015

Appellant Donald J. Jones, III, challenges his 50-year sentence for six convictions stemming from his attempt to engage in a sex act with a child across state lines and his possession and interstate transport of child pornography. Having thoroughly reviewed relevant portions of the record and each of Jones' arguments, we conclude that the district court's sentencing methodology was procedurally and substantively sound and that the district court did not abuse its discretion by imposing the sentence it did. See United States v. Politano, 522 F.3d 69, 72-73 (1st Cir. 2008) (setting out standard of review and general principles). Accordingly, the government's motion for summary disposition is , and the judgment of the district court is .

By the Court: /s/ Margaret Carter, Clerk

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PROVIDENCE, R.I. – Christian Montalvo, 40, of Providence, was sentenced today to 60 months in federal prison for trafficking heroin and for being a felon in possession of a firearm, announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston field division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Montalvo to serve 3 years supervised release upon completion of his prison term. Montalvo pleaded guilty on November 4, 2014, to one count each of possession of heroin with the intent to distribute and being a felon in possession of a firearm.

Montalvo entered his guilty plea as jury selection was underway for his federal court trial. No plea agreement was filed in this matter.

According to court documents, on November 14, 2013, ATF agents executed a court authorized federal search warrant at Montalvo’s residence and of his vehicle. As a result of the search, agents seized nearly 10 grams of heroin found stashed inside a void in a bedroom door; a loaded .38 caliber revolver and various items used in the preparation and distribution of heroin discovered in the kitchen; and more than 58 grams of heroin from inside a hidden compartment inside Montalvo’s vehicle.

According to court documents, Montalvo admitted to an ATF agent that the drugs and the firearm were his and that he purchased the firearm for $200 from a heroin user for protection.

Montalvo has been detained in federal custody since his arrest on November 14, 2013.

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

Providence Police assisted ATF in the investigation of this matter.

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PROVIDENCE, R.I. – Evelyn Nunez, 40, of Providence, was sentenced today to 30 months in federal prison and ordered to pay more than $1.4 million dollars in restitution to the IRS and the State of Rhode Island for her role in a scheme to steal personal identifying information of minors named as dependents on legitimate tax returns prepared by her company, NBP Multiservices (NBP), a tax preparation business in Cranston, R.I., and then sold to other tax filers for use on their tax returns in order to increase tax refunds, announced United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Ted A. Arruda,  Resident Agent in Charge of the Providence Office of the U.S. Secret Service.

At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Nunez to serve two years of supervised released upon completion of her prison term. Nunez pleaded guilty on December 12, 2014, to one count each of conspiracy to defraud the government and aggravated identity theft.

Two co-defendants in this matter have also pleaded guilty to federal charges and are awaiting sentencing. Tashia Bodden, 37, of Cranston, pleaded guilty to one count of conspiracy to defraud the government and one count of aggravated identity theft. Wendy Molina, 40, of Cranston, pleaded guilty to one count of conspiracy to defraud the government.

According to court documents, the Scheme Development Center, a division of the IRS, conducted an analysis of tax returns prepared by individuals working at NBP and identified questionable use of children being claimed as dependents. The use of the dependents led to the refunding by the IRS of hundreds of thousands of dollars under the Earned Income Credit available to low income taxpayers.

According to court records and information presented to the court, an investigation by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Attorney’s Office revealed that between January 2008 and February 2012, taxpayers purchased false dependents for approximately $600 - $700 per dependent. The investigation revealed that on numerous tax returns the defendants falsely claimed dozens of children to be foster children, nieces and nephews of some of their clients. In reality, they had no relation to the taxpayer.

The investigation revealed that the scheme defrauded the IRS of more than $1.34 million dollars and defrauded the State of Rhode Island of more than $65,500 dollars.

The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.

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PROVIDENCE, R.I. – Warren Hebert, 67, of Barrington, R.I., owner of Checkmaster Payroll Services, has been sentenced to 24 months in federal prison and ordered to pay $1.1 million in restitution to seven businesses and the Seekonk, Mass., Water District that he defrauded when he diverted federal payroll taxes he collected from them that were to have been paid to the IRS, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.

At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Hebert to serve two years supervised release and to perform 200 hours of community service upon completion of his prison term.  Hebert pleaded guilty on October 20, 2014, to eight counts of wire fraud and one count of impeding the administration of the Internal Revenue Code.

At the time of his guilty plea, Hebert admitted to the court that beginning in as early as April 2009 and continuing through at least October 2011, he diverted for his own personal use approximately $1,266,680 in funds due to the IRS that he withdrew from at least seven small businesses operating in Rhode Island and Massachusetts, which were to have been used to pay the clients’ federal employment taxes. In some instances Hebert used some of the funds to pay additional tax liabilities, interest and penalties of other clients whose tax returns he had previously failed to accurately prepare, file and pay.

Among the small businesses defrauded by Hebert were a nursery school, a local gym and a family owned moving company. Hebert also admitted to diverting funds from the Seekonk, Mass., Water District, a municipal water agency.

United States Attorney Peter F. Neronha commented, “What makes the defendant’s conduct particularly appalling is that, at bottom, he stole money from several small businesses, as well as a municipality.  Such entities, private and public, often operate near the margin, where every dollar counts.  The defendant violated the trust placed in him and, out of greed, diverted money that these entities had worked so hard to generate and set aside to pay their fair share of taxes.  A meaningful prison sentence is more than appropriate.”

“IRS Criminal Investigation takes employment tax violations very seriously," said William P. Offord, Special Agent in Charge of the Boston field office of IRS Criminal Investigation. “Mr. Hebert’s tax fraud is particularly egregious because his clients entrusted his business, Checkmaster Payroll Services, to collect and timely remit their employees’ payroll taxes.”  Instead, Mr. Hebert diverted over $1.2 million of these taxes for his personal benefit, which may result in the loss of future social security or Medicare benefits for the victims.”

The case was prosecuted by Assistant U.S. Attorney John P. McAdams.

            The matter was investigated by IRS Criminal Investigation, with the assistance of the FBI, Rhode Island FDA Task Force, Barrington Police and Rhode Island State Police.

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PROVIDENCE, R.I. – Nicholas Selser, 33, and Michael Fortes, 48, of Cranston, have been ordered detained in federal custody on charges that they allegedly manufactured methamphetamine inside their apartment at the Devan Manor housing complex in Cranston, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.

According to court documents, Cranston Police, the DEA Drug Task Force and the DEA Clandestine Laboratory Enforcement Team of New Hampshire executed a court authorized search of the defendants’ apartment on Wednesday, and seized various chemicals, supplies and items used in the manufacture of methamphetamine. The manufacture of methamphetamine is often times a dangerous process which may result in explosion or fire. The Devan Manor housing complex is a densely populated complex which includes a substantial number of elderly residents.

According to court documents, during the execution of the warrant, evidence was found indicating that methamphetamine had been manufactured approximately eleven times on prior occasions using the “one pot” method of methamphetamine manufacture. The “one pot” or “shake and bake” method is a simple but potentially very dangerous method of manufacturing methamphetamine in approximately one hour. 

The “one pot” method uses an empty container to combine ephedrine or pseudoephedrine, camping fuel or some other ether product, sulfuric acid, ammonia nitrate powder, lithium strips from batteries, and lye or some other sodium hydroxide product with water to produce liquid methamphetamine. The methamphetamine liquid is poured off, leaving waste byproduct. The liquid is then gassed off, producing methamphetamine. The containers will often leak dangerous chemicals because the containers cannot always withstand the pressure produced by the chemical reactions. The “one pot” method is also prone to cause fires and can sometimes cause explosions.

Nicholas Selser and Michael Fortes are charged with one count each of conspiracy to manufacture methamphetamine; manufacture of methamphetamine; possession of precursor chemicals to manufacture methamphetamine; and possession of equipment, products and material which may be used to manufacture methamphetamine.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

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PROVIDENCE, R.I. – Sarunn N. Phan, 27, of Providence, pleaded guilty in federal court today to being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

Phan faces a statutory sentence of up to 10 years in federal prison when he is sentenced by U.S. District Court Judge Mary M. Lisi on May 7, 2015. Phan also faces a consecutive sentence of up to 2 years in prison for being in violation of federal supervised release. In June 2011, Phan was sentenced to 48 months in federal prison to be followed by 3 years supervised release for being a felon in possession of a firearm.

According to information presented to the court, late in the evening of April 9, 2014, Providence Police responded to shots fired in the vicinity of Oakland and Dickens Street. Upon arrival, officers found eleven .9mm shell casings on the ground and noticed a Jeep Grand Cherokee in the vicinity. About an hour later, officers observed the same vehicle at Douglas Avenue and Eaton Street. After observing a traffic violation, the officers affected a traffic stop.

While pulling in behind the vehicle, officers observed an individual in a rear passenger seat toss a large black box into the rear cargo area. Upon arriving at the vehicle, the officers observed an open box with a firearm inside in the rear cargo area. Upon further inspection, officers discovered a .9mm handgun with an empty magazine. They also located a black plastic bag with ten .380mm rounds and a Glock 40 caliber magazine with 8 rounds of ammunition.

After being placed inside a police cruiser, Phan told an officer, “It is my car and everything in it is mine.” At the police station, Mr. Phan admitted that the Jeep was registered to him, the weapon was his, and told officers “it was self-defense.” Phan told police that he had been shot at earlier in the evening.
Phan has been detained since his arrest.

The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.

The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.

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PROVIDENCE, R.I. – A federal court jury on Thursday convicted Ernest Kar, 34, of Providence, with participating in a counterfeit check scheme that defrauded local banks of at least $800,000, announced by United States Attorney Peter F. Neronha; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; Warwick Police Chief Colonel Stephen M. McCartney; Providence Police Chief Colonel Hugh T. Clements, Jr.; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

The jury convicted Kar of one count of conspiracy to commit bank fraud and three counts of bank fraud. Kar faces statutory penalties of up to 30 years in federal prison and a fine of up to $1,000,000 on each count when he is sentenced by U.S. District Court Judge Mary M. Lisi on May 1, 2015. Kar is one of nine individuals charged in U.S. District Court in Providence or in Rhode Island state court for their participation in the fraudulent check-cashing scheme, which was dubbed “Operation Check-Mate.”

According to the government’s evidence presented at trial, between October 2010 and January 2014, Kar and his co-conspirators created counterfeit checks via computer, recruited account holders who agreed to have the fake checks deposited into their accounts in exchange for cash, and then made cash withdrawals from the accounts. Many of the counterfeit checks were drawn on the accounts of several legitimate businesses.

On December 16, 2013, during a joint federal and state law enforcement investigation into the fraudulent check scheme, Warwick Police discovered items used to create counterfeit checks, including check stock, a laptop computer, a printer and counterfeit checks, inside a motel room Kar was staying in and inside his vehicle. As a result of the investigation, including forensic examinations of the items seized by Warwick Police, a federal arrest warrant was issued for Kar. He was arrested in the Western District of Kentucky on April 28, 2014, and ordered detained and returned to Rhode Island.

Three co-defendants in this matter, Jerry Zeah, 25, Garty Togbasi, 28, and John Sumo, 28, all of Providence, previously pleaded guilty to conspiracy to commit bank fraud and each have been sentenced to 30 months in federal prison. A fourth co-defendant, Allarick Hill, 36, of Pawtucket, has pleaded guilty to conspiracy to commit bank fraud and is awaiting sentencing.

Four additional co-defendants in this matter have been or are being prosecuted on state charges in Rhode Island Superior Court.

The federal court cases are being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Sandra R. Hebert.

" Operation Check-Mate" was jointly investigated by the United States Secret Service, Warwick Police Department, Providence Police Department, and Rhode Island State Police.

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PROVIDENCE, R.I. – A federal court jury in Providence on Tuesday convicted a Providence woman of making false statements regarding her marital status in order to collect more than $47,000 in widower’s benefits from the Social Security Administration following the death of her former husband, announced United States Attorney Peter F. Neronha and Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations.

Sandra Money, 68, was found guilty of one count each of false statement to a government agency and theft of government funds. Money faces statutory penalties of up to 15 years in federal prison and a fine of up to $500,000 when she is sentenced by U.S. District Court Chief Judge William E. Smith on May 18, 2015.

According to the government’s evidence presented at trial, on October 19, 2011, Sandra Money telephoned the Providence office of the Social Security Administration to apply for widower’s benefits, reporting that her husband, Thomas Money, passed away in March 2011. She stated that she was married to Thomas Money since June 28, 1986, and that their marriage ended at the time of his death in March 2011.

Following the completion of the telephone application, a written notice was sent to the defendant setting forth that the information provided in the telephone application was true. The notice directed the defendant to contact the Social Security Administration within 10 days if she disagreed with any of the information contained in the notice. The defendant did not contact the Social Security Administration to dispute the information contained in the notice.

Government records show that every month, between December 2011 until January 2014, the U.S. Treasury electronically deposited between $1,837 and $1,903 into a bank account belonging to Sandra Money. In total, the U.S. Treasury deposited more than $47,000 into Ms. Money’s account.

Based on information developed at a later date by Social Security Administration agents, it was determined that Sandra Money and Thomas Money were not married at the time of Mr. Money’s death. R.I. Family Court records show that a Judgment of Divorce was entered on July 24, 1990, based on a complaint filed by Sandra Money.

The case was prosecuted by Assistant U.S. Attorney Zechariah Chafee.

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PROVIDENCE, R.I. – Former North Providence town councilman and former Rhode Island Deputy Secretary of State Paul Caranci has been awarded the prestigious 2014 Margaret Chase Smith American Democracy Award, presented by the National Association of Secretaries of State (NASS) for “acts of political courage.”

Mr. Caranci was honored in Washington on Wednesday for his role in assisting the FBI and the United States Attorney’s Office during an investigation into political corruption within the North Providence town council in 2010. Mr. Caranci, who first alerted law enforcement to a kickback scheme to ensure enough votes for the approval of a zoning variance which was before the council, was instrumental in the investigation and the successful prosecution of three town councilmen and an attorney who masterminded and participated in the bribery scheme.

It is the first time in the 22-year history of the award that a Secretary of State Office representative has received the honor. Former recipients include former U.S. Supreme Court Justice Sandra Day O’Connor, Civil Rights heroine Rosa Parks, former U.S. Secretary of State Condoleezza Rice and former President Jimmy Carter.

According to a NASS press release announcing the award in July 2014, “Mr. Caranci was nominated for the award by Indiana Secretary of State Connie Lawson for his courage in working with the FBI and other law enforcement entities to expose public corruption and bribery schemes that were masterminded by three of his fellow town councilmen in North Providence, R.I., placing his own political career and personal and family safety at great risk.”

“Being selected to receive the Margaret Chase Smith Award by the nation's Secretaries of State and all of the officials who comprise the organization is an extraordinary honor,” remarked Paul Caranci. “More than that, it is an amazing opportunity for me to reunite with so many wonderful friends. I am grateful for their considerations and their many friendships.” 

“The fight against public corruption, so critical in Rhode Island, cannot be waged effectively unless residents who are aware of it come forward and report it,” said United States Attorney Peter F. Neronha. “In the North Providence case, Mr. Caranci, unlike some others, saw corruption and decided to do something about it.  He had no obligation to do so.  He wasn’t directly impacted by it.  He could have done nothing.  And yet, to the consternation of some, he decided to do the right thing.”

Mr. Neronha added, “When every Rhode Islander reacts to corruption like Mr. Caranci did, we will eliminate this blight on our state.  Mr. Caranci has my enormous gratitude, and he deserves the gratitude of all Rhode Islanders.”

Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI noted, “Mr. Caranci’s cooperation was critical to uncovering the depth of this conspiracy. Concerned citizens like him are the FBI’s biggest asset in rooting out public corruption and exposing those who have abused the public’s trust. We thank him for his selfless donation of time in support of this case.”

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PROVIDENCE, R.I. – Neftali Reyes, a/k/a Popi, 32, of Providence, was sentenced today to 48 months in federal prison for trafficking heroin, announced by United States Attorney Peter F. Neronha and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division.

Additionally, Reyes forfeited $382,227 dollars in cash and a Rolex watch valued at $39,000 seized by the government at the time of Reyes’ arrest in August 2014. An investigation by the Rhode Island DEA Drug Task Force determined that the proceeds were generated as a result of Reyes’ drug trafficking activities.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Reyes to serve 3 years supervised release upon completion of his prison term. Reyes pleaded guilty on November 13, 2014, to one count of conspiracy to distribute heroin and two counts of distribution of heroin.

According to court documents and information presented to the court, beginning in April 2014, the DEA Drug Task Force conducted an investigation of the activities into a drug trafficking organization which included Neftali Reyes and others. On at least two occasions in July 2014, an East Providence undercover police officer arranged with Reyes to purchase heroin. On each occasion a different “runner” met with the undercover officer at pre-determined locations in Providence and Cranston to complete the transactions.

On August 25, 2014, law enforcement arrested Reyes as he left his residence and was entering a parking garage. As Reyes was being detained, he dropped a shoebox containing $37,000 in cash, a cell phone and an iPad. A court authorized search of Reyes’ residence resulted in the seizure of $339,477 in cash from a safe, additional cash located elsewhere in the residence, and a men’s Rolex Oyster watch valued at $39,000. Reyes admitted to law enforcement and to the court that the cash and the Rolex watch were the result of proceeds from the sale of heroin. Reyes admitted to selling heroin for $130 per gram and that the proceeds represented the sale of approximately 2,940 grams of heroin.

The case was prosecuted by Assistant U.S. Attorney Pamela E. Chin.

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PROVIDENCE, R.I. – Philip DeBartolo, 30, of Scituate, was sentenced today to 120 months in federal prison for being a felon in possession of 12 firearms, and manufacturing and distributing marijuana, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

At sentencing, U.S. District Court Chief Judge William E. Smith also ordered DeBartolo to serve 4 years of supervised release upon completion of his prison term. DeBartolo pleaded guilty on October 3, 2014 to four counts of being a felon in possession of a firearm (involving a total of 12 firearms), one count of possession of a firearm with an obliterated serial number, one count of manufacture of marijuana, one count of manufacture of marijuana near a school, and four counts of marijuana distribution.

No plea agreement was filed in this matter.

According to court documents, on numerous occasions beginning in August 2013, an undercover ATF agent communicated with and met with DeBartolo to purchase three firearms, including a sawed-off shotgun, for between $300 and $400 dollars. In addition, on several occasions, DeBartolo sold the agent plastic bags containing approximately one ounce of marijuana, each for between $200 and $225 dollars. DeBartolo thought he was selling the guns to a gang member for use in gang violence.

On January 15, 2014,  ATF agents, with the assistance of Scituate Police and DEA agents, executed a court authorized search of DeBartolo’s residence and seized six semi-automatic pistols, five of which had high capacity magazines, three revolvers, and a substantial amount of ammunition. Many of the items were located hidden beneath the floor boards of a second floor storage room. Agents and officers also seized 31 marijuana plants from the basement of the residence.

According to court records and information presented to the court, DeBartolo was convicted in Rhode Island state court in 2005 on felony assault, drive-by shooting and firearm charges.

United States Attorney Peter F. Neronha commented: “The defendant here is a dangerous man involved in an extremely dangerous business.  No stranger to committing acts of violence with illegal firearms himself, he was willing to sell guns to anyone willing to pay – including those whom he knew were likely to use those guns in violence against others.  Money, not lives, is what mattered to this defendant.  Ten years in a federal prison is plenty of time to reflect on that choice of priorities.”

“Today’s sentencing demonstrates ATF’s commitment to targeting prohibited individuals from possessing and trafficking in firearms,” said Daniel J. Kumor, ATF Special Agent in Charge of the Boston Field Division.  “ATF will continue to collaborate with our law enforcement partners to eliminate these types of crimes and remove firearms from illegal commerce.”

The use of the defendant’s residence for criminal conduct made the residence subject to forfeiture to the United States. The United States Attorney is pursuing the defendant’s residence in civil forfeiture proceedings.  Additionally, all of the guns and associated magazines and ammunition seized in this case have been forfeited to the Government. 

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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WASHINGTON – A federal jury sitting in Providence, Rhode Island, convicted a Cranston, Rhode Island, man of one count of corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), one count of tax evasion and two counts of aiding and assisting in the preparation and filing of false corporate tax returns, the Justice Department and the IRS announced.

John Fall was remanded into custody after the jury verdict on Monday.  Fall faces a statutory maximum sentence of 14 years in prison and a $1 million fine at his sentencing on April 28 before U.S. District Judge John J. McConnell Jr. for the District of Rhode Island. 

According to the evidence presented at trial, Fall was a real estate consultant who bought, sold and brokered real estate.  Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., and Broad Street Investments.  Between 1999 and 2010, Fall used numerous nominee entities and business names to conceal his business and financial transactions.  Fall also used multiple bank accounts, including commingled or “warehouse” bank accounts, in at least six states to conceal his financial transactions, as well as certain financial transactions of Comfort Dental and Broad Street Investments.  To further disguise business and financial transactions, Fall used fake names and aliases to conceal his ownership and control over his nominee entities.

The evidence at trial proved that Fall filed false federal income tax returns for 1998 and 1999, and failed to file any tax returns for the years 2000 through 2010.  The IRS audited Fall for 1998 through 2000, assessing him taxes totaling approximately $72,000. 

The evidence at trial further established that Fall caused the filing of false tax returns on behalf of Comfort Dental for the years 2005 through 2007.  Fall caused his wife’s businesses to make payments to his various entities which were falsely recorded on the corporate tax returns as deductible business expenses.  When Comfort Dental and Fall’s wife were audited civilly by the IRS in late 2008, Fall attempted to obstruct the audit by encouraging his wife’s accountant not to provide the IRS with information requested through an IRS summons, and instead provided false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities.  Fall also attempted to obstruct his wife’s compliance with an IRS summons. 

This case was investigated by special agents with the IRS – Criminal Investigation.  The case is being prosecuted by Assistant Chief John Kane and Trial Attorney Jeffrey Bender with the Justice Department’s Tax Division.

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PROVIDENCE, R.I. – Alexander Tovar, 26, and Miguel Valentin, 30, of Providence, have been sentenced to 5 years in federal prison for their participation in a heroin and cocaine trafficking conspiracy, that ended with the seizure of more than 486 grams of heroin and 462 grams of cocaine, announced United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.

At sentencing today, U.S. District Court Chief Judge William E. Smith also ordered Tovar to serve 3 years supervised release upon completion of his prison term. Tovar pleaded guilty on September 12, 2014, to one count each of conspiracy to possess with the intent to distribute cocaine and heroin, possession with the intent to distribute heroin, and possession with the intent to distribute cocaine.

On November 14, 2014, U.S. District Court Chief Judge William E. Smith sentenced Miguel Valentin to 5 years in federal prison to be followed by 3 years supervised release. He pleaded guilty on July 31, 2014, to one count each of conspiracy to possess with the intent to distribute cocaine and heroin, possession with the intent to distribute heroin, and possession with the intent to distribute cocaine.

According to court documents and information presented to the court, on December 21, 2013, a United States Customs and Border Protection (CBP) agent inspecting packages arriving in the United States from Venezuela discovered two similar packages, one containing 486.4 grams of heroin and the other containing 462.2 grams of cocaine. The packages were addressed for delivery to separate Boston area residences. CBP shipped both packages to Boston where they were turned over to the Criminal Investigations Division of Homeland Security.

On December 26, 2013, following two failed attempts by HSI Task Force undercover agents and Massachusetts State Police to deliver the package containing the heroin to the addressee, the package was returned to the shipping company office. While attempting to deliver the package, law enforcement spotted a vehicle with Rhode Island license plates and the two defendants. During the second attempted delivery, Valentin approached the delivery truck attempting to accept delivery of the package. He was refused delivery because he was not the addressee and could not prove he was authorized to accept delivery. Valentin then left the area in the vehicle with Rhode Island plates, being driven by Tovar.

According to information presented to the court, later the same day, the delivery company notified law enforcement that a person purporting to be the addressee called the delivery company and authorized release of his package to Miguel Valentin. The shipping company also received a telephone call requesting that the second package be released to a female whose name was provided to the shipping company. The next morning, Valentin arrived in a vehicle which also contained the female authorized to receive the package. Valentin went inside and accepted delivery from undercover agents who were posing as shipping company employees. Valentin was detained as he left the building.

Subsequent to Valentin’s arrest, HSI agents arranged to have the packages forwarded to Alexander Tovar. Tovar was observed by investigators taking receipt of the packages in Providence and was arrested.
The defendants have been detained in federal custody since their arrest.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.

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PROVIDENCE, R.I. – Andres Garay, 27, of Providence, faces between 5 – 40 years in federal prison when he is sentenced by U.S. District Court Chief Judge William E. Smith on April 10, 2015, having pleaded guilty today to possessing with the intent to deliver more than 100 grams of heroin, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

Additionally, according to court documents, at sentencing, the government will recommend that Garay serve a consecutive term of imprisonment of between 12 – 24 months for violating the terms of federal probation imposed in August 2011, for possession of cocaine with the intent to distribute. The court imposed a term of five years probation in that matter.

According to information presented to the court, on June 25, 2014, Providence Police encountered Garay outside his Providence resident where he was found to be in possession of two glassine packets of heroin. A subsequent investigation at the scene led Providence Police to believe that additional quantities of heroin may be stored inside Garay’s residence. A search of the residence resulted in the seizure of 1,850 glassine packets containing various amounts of heroin, two coffee grinders with a total of more than 118 grams of heroin, and various items used in the packaging and distribution of heroin.
Garay has been detained since his arrest.

The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein.

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PROVIDENCE, R.I. – Derek D. Felicio, 42, of North Smithfield, R.I., was sentenced today to 60 months in federal prison for possessing more than 90,000 images and 555 videos depicting child pornography and for distributing child pornography, announced United States Attorney Peter F. Neronha; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) in New England; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Felicio to serve 10 years of supervised release upon completion of his prison term. Felicio pleaded guilty on October 24, 2014, to one count each of possession of child pornography and distribution of child pornography.

According to court records and information presented to the court, in March 2013, Felicio unknowingly contacted an undercover HSI agent in Salt Lake City, UT, on a website which contains and is used to share images of child pornography. At the time of his guilty plea, Felicio admitted to the court that during an exchange of emails, he sent HSI agents numerous photographs depicting the lascivious display of prepubescent girls.

In October 2013, HSI agents in Rhode Island seized and searched two computers at Felicio’s residence. A forensic examination of the computers by the Rhode Island State Police Internet Crimes Against Children task force resulted in the identification of more than 90,000 images and 555 videos depicting child pornography.
Felicio has been detained in federal custody since his arrest by HSI agents on May 1, 2014.

            The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker

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PROVIDENCE, R.I. – Gbabia Kollie, 27, of Johnson City, Tenn., has pleaded guilty in federal court in Providence to participating in an alleged scheme to burn a multi-tenement building at 31-33 Ida Street in Providence in November 2013, in an alleged arson-for-profit scheme. Kollie has been detained in federal custody since December 5, 2013, when he was removed from an outbound international flight leaving Atlanta for Liberia and arrested by ATF agents.

Appearing on Wednesday before U.S. District Court Chief Judge William E. Smith, Kollie pleaded guilty to one count each of conspiracy to commit arson and arson. He faces statutory penalties totaling between 5 and 40 years in federal prison and a fine of up to $500,000 when he is sentenced on April 3, 2015. 

Two co-conspirators, Abraham Kerkula, 21, of Pawtucket and Nakele Freeman, 21, of Providence, previously pleaded guilty to one count each of conspiracy to commit arson and arson. Kerkula is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on March 27, 2015. A sentencing hearing has not yet been scheduled for Nakele Freeman. Both are detained in federal custody.

A fourth defendant in this matter, Kormahyah Karmue, 39, of, Providence, owner of the Ida Street property allegedly targeted to be burned, is awaiting trial on charges of conspiracy to commit arson, arson, wire fraud, mail fraud and theft of U.S. government funds. It is alleged in a federal indictment returned in May 2014, that Karmue masterminded the scheme in order to collect insurance payments. He has pleaded not guilty to the charges and is detained in federal custody.

The guilty pleas are announced by United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Providence Public Safety Commissioner Steven M. Paré.

At the time of his guilty plea, Kollie admitted to the court that he enlisted the assistance of Nakele Freeman to participate in the alleged conspiracy.  At the time of their guilty pleas, Freeman and Kerkula admitted that late in the evening of November 1 and in the early morning hours of November 2, 2013, Freeman asked Kerkula to give him a ride to a location where he was going to set fire to a building for “a lot of money.”

After traveling together to purchase 5-gallon gasoline storage containers and gasoline, Freeman and Kerkula traveled to the targeted property where Freeman removed the gasoline from the vehicle and entered the building. Freeman admitted to the court that he entered a vacant third floor apartment and spread the gasoline, and a fire ignited. He fled the building and met Kerkula at a designated location on a nearby side street.

According to court documents and information presented to the court, it is alleged that Kollie arranged with Freeman to set fire to the building in return for a payment of a portion of the expected insurance settlement. It is alleged that Kollie had several telephone conversations with Freeman while Freeman and Kerkula were in the vehicle en route to the Ida Street property.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.

The investigation was conducted by ATF, the Providence Fire Department Arson Squad and the Providence Police Department Detective Bureau.

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Rhode Island Attorney General Peter F. Kilmartin and United States Attorney Peter F. Neronha today jointly announced the cross-designation of several senior prosecutors to enhance the prosecution of multi-jurisdictional crime including narcotics, firearms, and human trafficking, as well as public corruption and child pornography.

Cross-designation permits prosecutors to cross-over and prosecute cases either in a state or federal court. Targeted cases are jointly reviewed to determine appropriate charges, appropriate jurisdiction and in which court appropriate penalties are likely to be realized.

Senior prosecutors experienced in firearms, narcotics, human trafficking, public corruption and child pornography prosecution have been cross-designated.  In the past, prosecutors were cross designated on a case by case basis. 

“The Office of Attorney General and the United States Attorney’s Office have long enjoyed a very good working relationship.  Both offices recognize that the priority is always to put together the best possible case for successful prosecution, no matter the venue,” said Attorney General Peter Kilmartin.  “There are certain crimes such as narcotics and human trafficking that often cross jurisdictional lines.  Cross designating multiple individuals in specialized areas of prosecution allows for greater cooperation and efficiencies, from the initiation of a case through to prosecution.”

"The cross-designations of these talented attorneys from both offices will allow us to more effectively pursue justice on behalf of the people of Rhode Island", said United States Attorney Peter F. Neronha. "Today's law enforcement challenges are more complex than ever, and a process by which attorneys from both offices can appear together in either federal or state court will provide an unprecedented level of flexibility in dealing with those challenges.  The partnership between the United State Attorney's Office and the Rhode Island Attorney General's Office has always been strong.   Today it is even stronger."

Prosecutors from the Office of Attorney General who are cross designated are Assistant Attorneys General J. Patrick Youngs, James Baum, John Corrigan, Daniel Guglielmo, and Mark Trovato and Special Assistant Attorneys General Charles Calenda, Joseph McBurney, and Sara Tindall-Woodman.

Prosecutors from the United States Attorneys’ Office who are cross designated are Assistant United States Attorneys Paul F. Daly, Jr., William J. Ferland, Adi Goldstein, Ly T. Chin and Milind M. Shah.

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PROVIDENCE, R.I. – A federal grand jury in Providence returned a twenty-six count indictment today charging Robert L. Wilkins, 23, of Providence, with twelve counts of distribution of heroin, twelve counts of distribution of cocaine base (crack cocaine), and one count each of conspiracy to distribute cocaine base and conspiracy to distribute heroin, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.

Wilkins was arrested by members of the FBI’s Safe Streets Violent Gang Task Force and Providence Police on January 8, 2014, following a high-speed car chase and brief foot chase in Providence. Wilkins was allegedly a passenger in a vehicle that allegedly rammed a federal agent’s vehicle in an effort to flee law enforcement. The driver of the vehicle is being sought.

 According to court documents and information presented to the court, since July 2014, the FBI Safe Streets Task Force has been investigating the alleged drug trafficking activities of Wilkins and his co-conspirators. It is alleged that twelve controlled purchases of heroin and twelve controlled purchases of crack cocaine were made from the defendant while he was under the surveillance of law enforcement.

According to court documents, the twelve alleged controlled purchases of crack cocaine from Wilkins ranged from approximately .6 grams to 1.5 grams and totaled about 11.5 grams.  The twelve alleged controlled purchases of heroin from Wilkins ranged from .3 grams to 1.6 grams and totaled approximately 12.2 grams.

The investigation is continuing.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Wilkins has been detained in federal custody since his arrest on January 8, 2014. He was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond following an initial appearance in federal court on a criminal complaint charging him with 12 counts of distribution of cocaine and 12 counts of distribution of heroin.

Conspiracy to distribute heroin, conspiracy to distribute cocaine base, distribution of heroin and distribution of cocaine base are each punishable by statutory penalties of up to 20 years imprisonment; $1,000,000 fine; and supervised release up to life with a mandatory minimum term of 3 years.

The case is being prosecuted by Assistant U.S. Attorneys Ly T. Chin and Paul F. Daly, Jr.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – John Crosslin, 51, of San Tan Valley, Arizona, has been charged in federal court in Providence with failing to pay legal child support obligations for his son totaling more than $116,000, announced United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General.

According to an information filed in federal court today by the United States Attorney’s Office, in December 1994, a judge of the Rhode Island Family Court initially ordered the defendant to pay child support of $55 per week for his son. Effective July 2001, the Family Court ordered the support payment increased to approximately $152 per week.

It is alleged in court documents that since being ordered to make child support payments, John Crosslin has made only sporadic payments, if any, under the Family Court’s order.  As of January 14, 2014, the defendant’s arrearage on his child support payments is approximately $116,391.66.

According to court documents, while the defendant has resided in other states, including Colorado and Arizona, he has had the ability to make child support payments but has failed to do so.

Failure to meet child support obligations, as defined in 8 U.S.C. '228(f)(3), is punishable by statutory penalties of up to 6 months in federal prison or 5 years probation, a $5,000 fine, 1 year supervised release, and mandatory restitution equal to the unpaid support obligation.

An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.

The matter was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Rhode Island Child Support Enforcement Office.

A court date in this matter has not yet been scheduled.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Adalberto Negron, 31, of Woonsocket, on Thursday, became the second person sentenced to 60 months in federal prison for their role in a crack cocaine distribution conspiracy which operated in Central Falls from January to November 2013, announced United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI, and Colonel James J. Mendonca, Central Falls Police Chief.

At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Negron to serve 4 years supervised release upon completion of his prison term. Negron pleaded guilty on September 12, 2014, to one count each of conspiracy to possess with the intent to distribute cocaine base, possession with the intent to distribute cocaine and possession with intent to distribute cocaine base in excess of 28 grams, and two counts of possession with the intent to distribute cocaine base.

Negron, his brother Angel Vigo, 21, of Central Falls, and a 3rd defendant, Edwin Nieves, 24, of Pawtucket, were arrested on November 8, 2013, by FBI agents, Central Falls Police, and officers and agents assigned to the FBI RI Safe Streets Task Force following a 10-month investigation into the crack cocaine distribution conspiracy.

According to court documents and information presented to the court, on at least ten occasions an individual operating at the direction of law enforcement arranged for the purchase and accepted delivery of varying amounts of crack cocaine from Vigo, Negron and Nieves. Telephone calls to arrange the purchases and the deliveries of the drugs were monitored by law enforcement. The deliveries took place in Central Falls and Pawtucket.

During the course of the investigation, including the execution of search warrants authorized by a federal court magistrate judge, law enforcement seized more than 200 grams of crack cocaine, 836 grams of cocaine powder and $70,000 in cash.

“As the large amounts of cash and illegal drugs involved in this case make clear, Rhode Island remains open for business when it comes to drug trafficking.  It is therefore no surprise that Rhode Island is among the top states in the nation for its residents’ abuse of illegal and prescription drugs, with disastrous results.  This is as much a public health issue as it is a law enforcement one.  It is thus imperative that we continue, with our local, state and federal partners, to target those whose endanger our residents and devastate the quality of life in our neighborhoods,” said United States Attorney Peter F. Neronha.

Colonel James J. Mendonca, Central Falls Police Chief added, “The arrest and subsequent sentencing of these lawless individuals is yet another shining illustration of how federal and local law enforcement agencies can work together and share resources in support of one collective goal – safer communities.”    

“The collaboration between the Central Falls Police Department and the FBI was a key factor in the successful dismantlement of this criminal enterprise, noted Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.”
On September 9, 2014, Edwin Nieves was sentenced by U.S. District Court Judge John J. McConnell, Jr., to 60 months in federal prison to be followed by 3 years supervised release. Nieves pleaded guilty on May 28, 2014, to conspiracy to distribute and possess with the intent to distribute cocaine base; possession with the intent to distribute cocaine; and two counts of possession with the intent to distribute cocaine base.

On April 22, 2014, Angel Vigo, who had been detained in federal custody since his arrest on November 8, 2013, was sentenced by U.S. District Court Judge John J. McConnell, Jr., to time served to be followed by three years supervised release. Vigo pleaded guilty on January 29, 2014, to one count of conspiracy to distribute and possess with the intent to distribute cocaine base and 6 counts of possession with the intent to distribute cocaine base.

The cases were prosecuted by Assistant U.S. Attorney William J. Ferland.

The matter was investigated by the FBI, FBI RI Safe Streets Task Force and Central Falls Police Department, with the assistance of officers from the Cranston, Providence and Norton, Mass., Police Departments and the Massachusetts State Police.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – Pedro Mercado, 32, of Providence, was sentenced today to 36 months in federal prison for possession of heroin with the intent to distribute. Mercado was arrested by Providence Police in February 2014, during an on-going investigation into heroin trafficking in the City of Providence.

At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Mercado to serve 4 years supervised release upon completion of his prison term. Mercado pleaded guilty on May 23, 2014, to possession of heroin with the intent to distribute.

Mercado’s sentence is announced by United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

According to court documents and information presented to the court, in January and February 2014, Providence Police detectives developed information regarding the drug trafficking activities of Mercado during an investigation into the distribution of heroin in the City of Providence. The investigation included several controlled purchases of heroin from the defendant.

On February 27, 2014, law enforcement executed court authorized search warrants for the defendant’s residence and two vehicles with ties to Mercado. In total, law enforcement seized 154 grams of heroin, $9,660 in cash, assorted items used in the packaging and distribution of heroin, and two firearms.

Receipts seized by law enforcement indicated that the firearms were legally purchased by the defendant.

The case was prosecuted by Assistant U.S. Attorney Pamela E. Chin.

Providence Police were assisted by the Rhode Island DEA Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

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PROVIDENCE, R.I. – The First Circuit Court of Appeals has denied an effort by Jose Alibal Santiago to withdraw his guilty plea in connection with the 2010 robbery and murder of a Woonsocket gas station manager.

On September 5, 2013, Jose Santiago pleaded guilty to conspiracy to commit robbery affecting commerce; robbery affecting commerce; and possessing, using, carrying, and discharging a gun in relation to a crime of violence with death resulting. On February 13, 2014, Santiago was sentenced to serve 40 years in federal prison.

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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/

Contact: 401-709-5357
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