UNIVERSAL ARYAN BROTHERHOOD MEMBER SENTENCED FOR DRUG TRAFFICKING, RACKETEERING

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, April 15, 2016

Universal Aryan Brotherhood Member Sentenced to 294 Months in Prison for Racketeering and Drug Trafficking

A member of the Universal Aryan Brotherhood (UAB) prison gang was sentenced in federal court today to 294 months in prison for conspiring to conduct a racketeering enterprise and related charges, announced Assistant Attorney General ­­­­­­­Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.

Anthony Ramon Hall, aka Tony, 40, of Tulsa, Oklahoma, was sentenced today by U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma, who also ordered Hall to serve five years of supervised release.

Hall pleaded guilty on June 9, 2015, and in connection with his plea, Hall acknowledged his membership in or association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma.  According to the plea, Hall held a leadership position in the UAB as a “main-council” member.

Hall admitted that he conspired in racketeering activities to advance the UAB enterprise, including possessing and selling 500 grams or more of methamphetamine.  Specifically, Hall admitted to using smuggled cell phones to coordinate the delivery, receipt and sale of methamphetamine by UAB members and associates outside of prison who would then return profits to him while he was incarcerated.  Hall also coordinated the firebombing of automobile car that belonged to someone Hall believed had stolen from the UAB drug conspiracy, he admitted.

The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Tulsa Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigation; FBI; Tulsa County Sheriff’s Office and Oklahoma Department of Corrections investigated the case.  Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma are prosecuting the case.

FORMER HONDURAN SOCCER FEDERATION PRESIDENT PLEADS GUILTY TO RACKETEERING, CORRUPTION AND WIRE FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, March 28, 2016

Former President of Honduran Soccer Federation Pleads Guilty to Racketeering and Corruption Charges

Earlier today in federal court in Brooklyn, New York, Rafael Callejas, the president of the Honduran soccer federation (FENAFUTH) from 2002 to 2015, pleaded guilty to racketeering conspiracy and wire fraud conspiracy in connection with his receipt of bribes in exchange for the awarding of contracts for the media and marketing rights to FIFA World Cup qualifier matches.  Callejas, who served as the President of the Republic of Honduras from 1990 to 1994, also agreed to forfeit $650,000.  At sentencing, Callejas faces a maximum sentence of 20 years for each count.  Today’s plea proceeding took place before U.S. Magistrate Judge Robert M. Levy.

The guilty plea was announced by U.S. Attorney Robert L. Capers for the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez for FBI’s New York Field Office and Acting Special Agent in Charge Anthony J. Orlando for the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Los Angeles Field Office.

According to court filings and facts presented during the plea proceeding, Callejas negotiated and accepted bribes totaling hundreds of thousands of dollars in exchange for his agreement to exercise his influence as the president of FENAFUTH to award contracts to Media World, a Florida sports marketing company, for the media and marketing rights to the Honduran national soccer team’s home World Cup qualifier matches for the 2014, 2018 and 2022 editions of the World Cup.  Over a period of years, Media World transmitted these bribes from its U.S. bank accounts, through an intermediary, to the foreign bank accounts of the defendant and a co-conspirator.

The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI’s New York Field Office, and the IRS-CI Los Angeles Field Office.  The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section and the Fraud Section, as well as from INTERPOL Washington.

Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Paul Tuchmann, Nadia Shihata, Keith D. Edelman and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.

The government’s investigation is ongoing.

ALLEGED "CRIPS GANG MEMBERS INDICTED IN NEBRASKA..."

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, January 29, 2016

Crips Gang Members Indicted in Nebraska for Racketeering Conspiracy and Related Offenses

Six alleged members of the Crips have been indicted for their alleged roles in a racketeering conspiracy involving murder, attempted murder and other offenses in Nebraska, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and the U.S. Attorney Deborah R. Gilg of the District of Nebraska.

A federal grand jury returned the superseding indictment on Jan. 27, 2016, and it was unsealed today in the District of Nebraska.  It charges Jerell Haynie, aka Bootie and T; Gregory Bahati, aka Pooh Bear and Murk 2x; Dionte Dortch, aka Killa Tay; Kendell Tealer; Brandon Heard, aka B; and Julio Arias, aka Rudy, all of Omaha, Nebraska, with conspiracy to participate in racketeering activity.  Haynie is also charged with one count of attempted murder in aid of racketeering, one count of attempt to commit assault with a dangerous weapon in aid of racketeering and one count of discharging a firearm during a crime of violence; Heard is also charged with three counts of distribution of cocaine base; Bahati is also charged with one count of threats in aid of racketeering and one count of brandishing a firearm during a crime of violence; Dortch is also charged with one count of felon in possession of a firearm, one count of witness tampering and one count of attempted obstruction of justice; and Arias is also charged with three counts of distribution of cocaine base.  As of this morning, five of the defendants are in custody; Heard is a fugitive.

According to the superseding indictment, the Crips is a violent street gang originally based in Los Angeles with members located throughout the country.  The Crips are divided into local chapters, referred to as “sets.”  There are numerous “sets” of Crips in the Omaha area, including but not limited to the “40th Ave Crips” and the “44th Ave Crips.”  The 40th Ave. Crips and the 44th Ave Crips have “cliqued up” in response to, and in order to protect themselves against, rival Blood gangs in Omaha.

The superseding indictment alleges that the 40th Ave Crips operated a drug-distribution organization dealing mainly in crack cocaine and sought to protect that enterprise through threats and violence.  The 40th Ave Crips also sought to keep victims and witnesses in fear of the gang through acts of violence.  Specifically, for example, the indictment alleges that in December 2010, Tealer used a firearm to shoot and kill a victim; in September 2012, Haynie shot at an occupied residence; and in April 2015, Dortch was in a vehicle with Crips associates, leaned out of a window and shot at four victims, including an infant, in another vehicle.

The Bureau of Alcohol, Tobacco, Firearms and Explosives field office in Omaha and the Omaha Police Department are investigating the case.  Trial Attorneys Yvonne L. Garcia and Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matthew Molsen and Michael Norris of the District of Nebraska are prosecuting the case.

The charges contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

DOJ ANNOUNCES ADDITIONAL INDICTMENTS IN FIFA RACKETEERING CONSPIRACY AND CORRUPTION CASE

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, December 3, 2015

Sixteen Additional FIFA Officials Indicted for Racketeering Conspiracy and Corruption

The New Defendants Include Five Current or Former FIFA Executive Committee Members and the Current Presidents of CONCACAF and CONMEBOL; Guilty Pleas for Eight Others, Including Jeffrey Webb and the Former Presidents of the Colombian and Chilean Soccer Federations, also Announced

A 92-count superseding indictment was unsealed earlier today in federal court in Brooklyn, New York, charging an additional 16 defendants with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with their participation in a 24-year scheme to enrich themselves through the corruption of international soccer.  The superseding indictment also includes additional charges for seven of the defendants still pending extradition following the return of the original indictment last May.  The guilty pleas of eight defendants – including Jeffrey Webb, Alejandro Burzaco and José Margulies, three of the defendants indicted last May – were also announced today.

The new defendants charged in the superseding indictment include high-ranking officials of FIFA, the organization responsible for the regulation and promotion of soccer worldwide, as well as high-ranking officials of other soccer governing bodies that operate under the FIFA umbrella.  The defendants Alfredo Hawit and Juan Ángel Napout – the current presidents of CONCACAF and CONMEBOL, respectively, as well as current FIFA vice presidents and Executive Committee members – are among the 16 additional soccer officials charged with racketeering and bribery offenses.  CONCACAF and CONMEBOL are two of FIFA’s six continental confederations.  The new defendants also include Marco Polo del Nero and Ricardo Teixeira, the current and former presidents of the Brazilian soccer federation, both of whom are also former members of the FIFA Executive Committee, as well as José Luís Meiszner and Eduardo Deluca, the current and former general secretaries of CONMEBOL.  Within UNCAF, the Central American regional soccer union operating within CONCACAF, the charges in the superseding indictment name the current and/or former presidents of nearly every country in the region: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.  Taken together, the 27 defendants in the superseding indictment are alleged to have engaged in a number of schemes all designed to solicit and receive well over $200 million in bribes and kickbacks to sell lucrative media and marketing rights to international soccer tournaments and matches, among other valuable rights and properties.

The charges were announced by Attorney General Loretta E. Lynch, FBI Director James B. Comey, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Chief Richard Weber of Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Erick Martinez of the IRS-CI Los Angeles Field Office.

Early this morning, Swiss authorities in Zurich arrested two of the defendants charged in the superseding indictment – Hawit and Napout – at the request of the United States.  Also this morning, a search warrant was executed at Media World, a sports marketing company based in Miami.

The new charges unsealed today bring the total number of individuals and entities charged to date to 41.  Of those, 12 individuals and two sports marketing companies have already been convicted as a result of the ongoing investigation.  The convicted defendants have agreed to pay more than $190 million in forfeiture.  In addition, more than $100 million has been restrained in the United States and abroad in connection with the alleged criminal activity.  The United States has issued mutual legal assistance requests seeking the restraint of assets located in 13 countries around the world.

“The Department of Justice is committed to ending the rampant corruption we have alleged amidst the leadership of international soccer – not only because of the scale of the schemes, or the brazenness and breadth of the operation required to sustain such corruption, but also because of the affront to international principles that this behavior represents,” said Attorney General Lynch.  “The message from this announcement should be clear to every culpable individual who remains in the shadows, hoping to evade our investigation: You will not wait us out.  You will not escape our focus.”  Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland for their continuing outstanding assistance and collaboration in this investigation, and to the authorities in a number of other countries, including Brazil and Colombia, for their assistance as well.

“For decades, these defendants used their power as the leaders of soccer federations throughout the world to create a web of corruption and greed that compromises the integrity of the beautiful game,” said Director Comey.  “I want to thank all the agencies for their hard work and for showing the world that we do not tolerate this criminal activity.”

“The charges unsealed today send a clear message to those who corrupted a sport beloved by millions to satisfy their own greed: We are determined to put a stop to bribery and corruption in international soccer and to make room for a new era of integrity and reform,” said U.S. Attorney Capers.  “This indictment is the latest step in that effort, but our work is not done.  While our investigation continues at home, we also look forward to continuing our collaboration with our international partners, including in particular the Swiss authorities, because there is so much yet to be done.”  Mr. Capers extended his thanks to the agents, analysts and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS-CI Los Angeles Field Office, as well as their colleagues in the United States and abroad, for their continuing tremendous effort in this case.  Mr. Capers also thanked the U.S. Marshals Service for its continuing assistance.

“The brazenness with which the individuals indicted today breached the integrity of the U.S. financial system to promote and conceal their criminal schemes is quite alarming,” said Chief Weber.  “While it is one of the most complex worldwide financial investigations ever conducted, it is also an eye opener to everyone that such greed and corruption could be hiding in plain sight within the world’s most popular sport.  By conspiring to enrich themselves through bribery and kickback schemes relating to media and marketing rights, the defendants undermined the process of fair and open competition, corrupting the beautiful game for their own personal gain.”

The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

Overview of the Superseding Indictment

As alleged in the superseding indictment, FIFA and its six continental confederations – including CONCACAF, headquartered in the United States, and CONMEBOL, the confederation headquartered in South America – together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of violating the federal racketeering laws.  The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.

Like the original indictment, the superseding indictment alleges that between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering.  Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks.  All told, the soccer officials are charged with conspiring to solicit and receive more than $200 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.

The schemes alleged in the original indictment related to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, as well as schemes related to the payment and receipt of bribes and kickbacks in connection with the sponsorship of the Brazilian soccer federation by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.

The new allegations in the superseding indictment relate to a series of bribery schemes in connection with multiple cycles of FIFA World Cup qualifiers and international friendly matches involving six Central American member associations within UNCAF; a bribery scheme implicating many top CONMEBOL officials relating to the sale of broadcasting rights to the CONMEBOL Copa Libertadores over an extended period; and a scheme by an Argentinian sports marketing company to obtain various rights properties from CONCACAF by paying bribes to three Central American soccer officials to cause them to exert their influence in favor of the company.

The 16 New Defendants

As set forth in the superseding indictment, the 16 newly-indicted defendants are all current or former soccer officials who acted at various times in a fiduciary capacity within FIFA and one or more of its constituent organizations:

CONCACAF Region Officials

Alfredo Hawit: Current FIFA vice president and Executive Committee member and CONCACAF president.  Former CONCACAF vice president and Honduran soccer federation president.
Ariel Alvarado: Current member of the FIFA Disciplinary Committee.  Former CONCACAF Executive Committee member and Panamanian soccer federation president.
Rafael Callejas: Current member of the FIFA Television and Marketing Committee.  Former Honduran soccer federation president and former president of the Republic of Honduras.
Brayan Jiménez: Current Guatemalan soccer federation president and member of the FIFA Committee for Fair Play and Social Responsibility.
Rafael Salguero: Former FIFA Executive Committee member and Guatemalan soccer federation president.
Héctor Trujillo: Current Guatemalan soccer federation general secretary and judge on the Constitutional Court of Guatemala.
Reynaldo Vasquez: Former Salvadoran soccer federation president.
CONMEBOL Region Officials

Juan Ángel Napout: Current FIFA vice president and Executive Committee member and CONMEBOL president.  Former Paraguayan soccer federation president.
Manuel Burga: Current member of the FIFA Development Committee.  Former Peruvian soccer federation president.
Carlos Chávez: Current CONMEBOL treasurer.  Former Bolivian soccer federation president.
Luís Chiriboga: Current Ecuadorian soccer federation president and member of the CONMEBOL Executive Committee.
Marco Polo del Nero: Current president of the Brazilian soccer federation.  Announced resignation from FIFA Executive Committee on Nov. 26, 2015.
Eduardo Deluca: Former CONMEBOL general secretary.
José Luis Meiszner: Current CONMEBOL general secretary.
Romer Osuna: Current member of the FIFA Audit and Compliance Committee.  Former CONMEBOL treasurer.
Ricardo Teixeira: Former Brazilian soccer federation president and FIFA Executive Committee member.
The Convicted Defendants

The following defendants previously pleaded guilty under seal and agreed to forfeit more than $40 million:

On May 26, 2015, Zorana Danis, the co-founder and owner of International Soccer Marketing Inc., a New Jersey-based sports marketing company, waived indictment and pleaded guilty to a two-count information charging her with wire fraud conspiracy and filing false tax returns.  As part of her plea, Danis agreed to forfeit $2 million.

On Nov. 9, 2015, Fabio Tordin, the former CEO of Traffic Sports USA Inc. and currently an executive with Media World LLC, a Miami-based sports marketing company, waived indictment and pleaded guilty to a four-count information charging him with three counts of wire fraud conspiracy and one count of tax evasion.  As part of his plea, Tordin agreed to forfeit more than $600,000.

On Nov. 12, 2015, Luis Bedoya, a member of the FIFA Executive Committee, a CONMEBOL vice president and, until last month, the president of the Federación Colombiana de Fútbol, the Colombian soccer federation, waived indictment and pleaded guilty to a two-count information charging him with racketeering conspiracy and wire fraud conspiracy.  As part of his plea, Bedoya agreed to forfeit all funds on deposit in his Swiss bank account, among other funds.

On Nov. 16, 2015, Alejandro Burzaco, the former general manager and chairman of the board of Torneos y Competencias S.A., an Argentinian sports marketing company, pleaded guilty to racketeering conspiracy, wire fraud conspiracy and money laundering conspiracy.  As part of his plea, Burzaco agreed to forfeit more than $21.6 million.

On Nov. 17, 2015, Roger Huguet, the CEO of Media World and its parent company, waived indictment and pleaded guilty to a three-count information charging him with two counts of wire fraud conspiracy and one count of money laundering conspiracy.  As part of his plea, Huguet agreed to forfeit more than $600,000.

On Nov. 23, 2015, Jeffrey Webb, a former FIFA vice president and Executive Committee member, CONCACAF president, Caribbean Football Union Executive Committee member and Cayman Islands Football Association president, pleaded guilty to racketeering conspiracy, three counts of wire fraud conspiracy and three counts of money laundering conspiracy.  As part of his plea, Webb agreed to forfeit more than $6.7 million.

On Nov. 23, 2015, Sergio Jadue, a vice president of CONMEBOL and, until last month, the president of the Asociación Nacional de Fútbol Profesional de Chile, the Chilean soccer federation, waived indictment and pleaded guilty to a two-count information charging him with racketeering conspiracy and wire fraud conspiracy.  As part of his plea, Jadue agreed to forfeit all funds on deposit in his U.S. bank account, among other funds.

On Nov. 25, 2015, José Margulies, the controlling principal of Valente Corp. and Somerton Ltd, who served as an intermediary who facilitated illicit payments between sports marketing executives and soccer officials, pleaded guilty to racketeering conspiracy, wire fraud conspiracy, and two counts of money laundering conspiracy.  As part of his plea, Margulies agreed to forfeit more than $9.2 million.

As previously announced last May, all money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants’ crimes under federal law.

* * * *

The indicted and convicted defendants face maximum terms of incarceration of 20 years for the Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges.  In addition, Tordin and Danis face maximum terms of five and three years in prison, respectively, for the tax charges.  Each defendant also faces mandatory restitution, forfeiture and a fine.

The superseding indictment and guilty pleas unsealed today are assigned to the U.S. District Judge Raymond J. Dearie of the Eastern District of New York.

The government’s investigation is ongoing.

The charges and guilty pleas announced today are part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office of the Eastern District of New York, the FBI’s New York Field Office and the IRS-CI Los Angeles Field Office.  The work in the U.S. Attorney’s Office involves prosecutors from the National Security and Cybercrime Section, the Organized Crime and Gang Section, the Business and Securities Fraud Section and the Public Integrity Section.  The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section and the Fraud Section, as well as from INTERPOL Washington.

The charges and guilty pleas announced today are being prosecuted by Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, M. Kristin Mace, Paul Tuchmann, Keith D. Edelman, Tanya Hajjar and Brian D. Morris of the Eastern District of New York.

MS-13 MEMBER PLEADS GUILTY TO CONSPIRACY TO COMMIT MURDER TO FURTHER RACKETEERING

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, December 3, 2015

MS-13 Member Pleads Guilty in Violent Racketeering Conspiracy

Defendant Admitted his Participation in MS-13 and Witness Retaliation Murder Conspiracy

A North Plainfield, New Jersey, man pleaded guilty today to conspiracy to commit murder in furtherance of a racketeering enterprise known as La Mara Salvatrucha, or MS-13, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Acting Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division.

Jose Romero-Aguirre, aka Conejo, 29, pleaded guilty before U.S. District Judge Stanley R. Chesler of the District of New Jersey, who scheduled sentencing for March 16, 2016.  Romero-Aguirre remains detained pending sentencing.

According to court documents, MS-13 is a national and international gang with branches or “cliques” operating throughout the United States, including in Plainfield, New Jersey.  In connection with his plea, Romero-Aguirre admitted that he was a member of the Plainfield Locos Salvatrucha (PLS) Clique of MS-13 for a period of time continuing through at least August 2011.  Romero-Aguirre admitted that in or around July 2011, MS-13 members began investigating the arrest of several members of the PLS Clique to identify those who had provided police with information on the arrestees, contrary to PLS rules.  Romero-Aguirre admitted that he participated in phone calls with other incarcerated MS-13 members discussing the need to find and kill the witnesses and that he agreed to relay the murder instructions from the incarcerated members to the other MS-13 members.              

Twelve other members and associates of the PLS Clique are scheduled for trial in front of Judge Chesler on Feb. 9, 2016.  The charges include several counts of murder, attempted murder, robbery, extortion, witness retaliation and sexual assault.  

FBI’s Newark Division, U.S. Immigration and Customs Enforcement-Homeland Security Investigations’ Newark Field Office, the Plainfield Police Department and the Union County, New Jersey, Prosecutor’s Office investigated the case.  Assistant U.S. Attorneys James Donnelly and Jamari Buxton of the District of New Jersey and Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section are prosecuting this case.

PHANTOM OUTLAW MOTORCYCLE CLUB LEADER SENTENCED TO 35 YEARS IN PRISON

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, September 8, 2015

Detroit Gang Leader Sentenced to 35 Years for Violent Racketeering-Related Crimes

The National President of the Phantom Outlaw Motorcycle Club and “Three-Star General” of the Vice Lords street gang in Michigan was sentenced today to serve 35 years in prison for violent racketeering-related crimes.  To date, 12 other defendants have been convicted of federal offenses related to their roles in this violent conspiracy.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division made the announcement.

The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit.  Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and the FBI, law enforcement authorities linked various acts of violence in Detroit to the Phantom Outlaw Motorcycle Club and the Vice Lords street gang, and identified the leaders and key members of these gangs, who now have been held accountable.

Antonio Johnson, aka Mister Tony, MT or Big Bro, 39, of Detroit, was convicted on March 16, 2015, after a multi-week trial, of engaging in a racketeering conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, use and carry of a firearm during and in relation to a crime of violence, and being a felon in possession of firearms.  U.S. District Judge Paul D. Borman of the Eastern District of Michigan presided over the trial and imposed today’s sentence.

“Through his leadership positions in two gangs, Johnson spread violence in Detroit and beyond,” said Assistant Attorney General Caldwell.  “Here, through the Detroit One initiative, the collective efforts of federal agents, state and local police, and private citizens helped thwart a mass murder plot and ensure the convictions and lengthy prison sentences of Johnson and his fellow gang members.  This case is emblematic of law and order at its best: a true partnership between law enforcement authorities and the community they serve.”

“Gang wars fuel violence in our community, and the resulting drive-by shootings create unacceptable risk to innocent lives,” said U.S. Attorney McQuade.  “The Detroit One partners are systematically dismantling violent street and motorcycle gangs that are destroying the peace in our neighborhoods.”

“This significant sentence is the result of our on-going state and federal effort to combat gun violence in our communities,” said Special Agent in Charge Shoemaker.  “This investigation and resulting convictions is proof again that the Detroit One initiative and the CVRP are making a significant difference in our communities, there is a lot of work to do, but ATF is committed in the fight against violent crime.”

At trial, evidence showed that the Phantom Outlaw Motorcycle Club, which is headquartered in northwest Detroit, and its members were involved in a range of criminal activity including conspiracy to commit murder, shootings, robbery, extortion and the possession and sale of stolen vehicles and motorcycles.  The evidence also demonstrated that the leadership of the Phantoms was heavily involved in the Vice Lords, a well-known street gang originating from Chicago, and that Johnson was both the National President of the Phantoms and a leader of the Vice Lords in Michigan.  The evidence showed that Johnson used the Vice Lords to assist the Phantoms in various criminal endeavors, including to search for and violently attack rivals of the Phantoms.

Specifically, according to the evidence presented at trial, on Sept. 8 2013, Johnson ordered numerous Phantoms to forcibly steal the “rags,” or motorcycle vests, of members of the rival Satan Sidekick Motorcycle Club.  The evidence showed that, during Phantoms’ attempt to do so, a Satan Sidekick member was shot in the face and a Phantom member was stabbed.

According to the evidence presented at trial, a few weeks later, Johnson and his fellow Phantoms plotted the murder of three members of the rival Hell Lovers Motorcycle Club whom the Phantoms believed were responsible for a shooting death of a member of their club.  According to the evidence presented at trial, the plot involved killing the three men and then, during the anticipated subsequent wake at the Hell Lovers’ clubhouse, shooting all Hell Lovers in attendance.  ATF and FBI agents intervened before the Phantoms carried out the plot.


The case was investigated by the ATF and the FBI.  The case was prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Louis Gabel of the Eastern District of Michigan.

Through the Detroit One initiative, local, state, and federal law enforcement authorities are maximizing their abilities to identify and arrest those responsible for violence in Detroit.  Since 2013, this collective effort has had led to significant indictments, convictions, and sentences against a number of street gang members responsible for much of the violent crime in Detroit.  These collaboration also has contributed to a decrease in the homicide rate from 386 in 2012 to 300 in 2014, and in the overall violent crime rate.

MOTORCYCLE CLUB LEADER SENTENCED TO PRISON FOR RACKETEERING AND SHOOTING AT ATF AGENTS

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, August 11, 2015

GANG LEADER SENTENCED TO 40 YEARS IN PRISON FOR VIOLENT RACKETEERING-RELATED CRIMES AND SHOOTING AT FEDERAL AGENTS

A leader of the Phantom Outlaw Motorcycle Club, who was also a member of the Vice Lords street gang, was sentenced to 40 years in prison today for violent racketeering-related crimes and shooting at federal agents.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division made the announcement.

Marvin Nicholson, 46, of Detroit, was convicted on March 16, 2015, after a multi-week trial before U.S. District Judge Paul D. Borman of the Eastern District of Michigan, of engaging in a RICO conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, assault on federal officers, using and carrying firearms during and in relation to a crime of violence and being a felon in possession of firearms.

At trial, the evidence showed that the Phantom Outlaw Motorcycle Club, which is headquartered in northwest Detroit, and its members were involved in a range of criminal activity, including conspiracy to commit murder, shootings, robbery, extortion and the possession and sale of stolen vehicles and motorcycles.  The evidence also demonstrated that the leadership of the Phantoms was heavily involved in the Vice Lords street gang, which is a well-known street gang originating in Chicago.

According to the evidence presented at trial, Nicholson was the National Enforcer of the Phantoms and a member of the Vice Lords street gang.  Further, the evidence showed that Nicholson played a significant role in planning armed assaults on rivals, imposing discipline on the Phantoms and carrying out the orders of Antonio Johnson, aka Mister Tony, MT and Big Bro, who was the National President of the Phantoms and the “Three-Star General” over the Vice Lords street gang in Michigan.  The charges of which Nicholson was convicted primarily stemmed from the Phantoms’ attacks or planned attacks on their rivals and enemies, including a murder plot.

Finally, the trial evidence demonstrated that, on Oct. 4, 2013, while the ATF attempted to execute a search warrant at his residence in Detroit, Nicholson shot at ATF agents as they attempted to enter his residence.  A wall prevented the bullets from hitting the agents.

Another 12 defendants have been convicted of a variety of racketeering and weapons offenses in this case.  Additional sentencing hearings will be held before U.S. District Judge Paul D. Borman of the Eastern District of Michigan.

These convictions are the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit, and through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and the FBI.

This case is being prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Louis Gabel of the Eastern District of Michigan.

THREE MS-13 GANG LEADERS SENTENCED FOR RACKETEERING, RELATED CHARGES FOR MURDERS AND ATTACKS

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, June 23, 2015

Three MS-13 Leaders Sentenced for Racketeering and Related Charges for Multiple Murders and Attacks

Twelve Others Have Pleaded Guilty in the Case

Three leaders of MS-13 in Washington, D.C., were sentenced today to federal prison for conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Special Agent in Charge Clark E. Settles of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Washington D.C. Field Office and Chief Cathy L. Lanier of the Metropolitan Police Department (MPD) made the announcement.

Noe Machado-Erazo aka Gallo, 32, of Wheaton, Maryland, was sentenced to life in prison plus 10 years in prison.  Jose Martinez-Amaya, aka Crimen, 28, of Brentwood, Maryland, was sentenced to life in prison plus 10 years in prison.  Yester Ayala, aka Freeway or Daddy Yankee, 24, of Washington, D.C., was sentenced to 30 years in prison.  Senior U.S. District Court Judge Royce C. Lamberth of the District of Columbia imposed the sentences.

“MS-13 is a brutally violent gang that has plagued communities in many parts of this country, including Washington, D.C.,” said Assistant Attorney General Caldwell.  “The lengthy sentences imposed on the MS-13 leaders convicted in this case reflect the vicious and calculated nature of the murders they committed and the gang they led.”

“This prosecution shows our commitment to purging MS-13’s bloody brand of violence from the District of Columbia,” said Acting U.S. Attorney Cohen.  “These killers brought lawless vengeance to our community and left a 14-year-old boy dead.  These gang members will now have decades in prison to reflect on their heinous crimes.”

“HSI continuously targets transnational gangs that wreak havoc on our American communities,” said Special Agent in Charge Settles.  “Today’s sentences are testament to the strong investigative work of our HSI special agents and the Metropolitan Police Department.”

“The action by the courts today further exemplifies our message to persons engaging in criminal gang activity: you will find no place for your activities here in Washington, D.C.,” said Chief Lanier.  “We will work as long as necessary to ensure this city, and the capital area, are free from the violence and harm gang activity brings into our communities.  The agents, officers, and attorneys have done a tremendous job bringing this case to a successful end.”

In August 2013, following a month-long trial, Machado-Erazo and Martinez-Amaya were found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.  Ayala was found guilty of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, first-degree premeditated murder and second-degree murder.

MS-13 is a large gang that operates in the United States and Central America.  Members engage in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes.

According to evidence presented at trial, a number of small MS-13 groups, or cliques, operate in the Washington, D.C., area.  The evidence showed that the cliques have frequent contact with MS-13 leadership in El Salvador, and that they act in accordance with the MS-13’s international strictures, including the requirement that members remain unfailingly loyal to the gang.

The evidence presented at trial showed that both Machado-Erazo and Martinez-Amaya were members of the Normandie clique, and that Martinez-Amaya held a leadership position in the group; and that Ayala was a leader of the Sailors, another clique.  The evidence also showed that Machado-Erazo coordinated the activities of local MS-13 cliques.

At trial, the government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos.  Membreno-Zelaya’s body was found on Nov. 6, 2008, in Northwest Washington, D.C.  He had been stabbed at least 20 times.

According to evidence presented at trial, Ayala also participated in the Dec. 12, 2008, murder of 14-year-old Giovanni Sanchez near the Columbia Heights Metro station in Washington D.C.  Giovanni was stabbed 11 times.

The evidence at trial also demonstrated that Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, an MS-13 member whose body was found on March 31, 2010, in Montgomery County, Maryland.  The government presented evidence that Enriquez was lured to a remote park where he was fatally shot by Martinez-Amaya.  Evidence presented during the trial showed that Machado-Erazo provided the gun used in the shooting.

The three defendants sentenced today are among numerous individuals charged in a 2010 indictment alleging criminal acts committed between 2008 and 2010 in the District of Columbia, Maryland, Virginia and other states, as well as in El Salvador.  Twelve defendants have pleaded guilty to charges in the case.

The case was investigated by ICE-HSI and the MPD.  Assistance was provided by the Montgomery County, Prince George’s County and Riverdale Park, Maryland, Police Departments; the Fairfax County, Virginia, Police Department; the State’s Attorney’s Office of Montgomery County; the U.S. Attorney’s Office of the District of Maryland and the U.S. Attorney’s Office of the Eastern District of Virginia.  Assistance also was provided by the Organized Crime Drug Enforcement Task Force.

This case was prosecuted by Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Nihar Mohanty of the District of Columbia.

MAN PLEADS GUILTY FOR ROLE IN INTERSTATE PROSTITUTION ENTERPRISE

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, April 8, 2015

Leader of Sex Trafficking Ring Pleads Guilty

The leader of a sex trafficking ring pleaded guilty to charges stemming from his interstate prostitution enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division.

Jeremie J. Tate, 33, of Zachary, Louisiana, pleaded guilty this morning before U.S. District Judge Shelly D. Dick of the Middle District of Louisiana to conspiracy to unlawfully use interstate facilities in aid of racketeering, two counts of use of interstate facilities in aid of racketeering and enticing another to travel interstate for prostitution.  After evading arrest for several days, Tate was apprehended in Houston, Texas, on April 25, 2014, by the U.S. Marshals Service Fugitive Task Force and the FBI’s New Orleans Division.  Tate has remained in federal custody since his arrest.

According to the plea agreement filed in the case, from November 2012 through November 2013, Tate operated a prostitution business based in Baton Rouge involving multiple prostitutes, including a minor.  Tate and others, used telephones and the Internet to arrange online advertising, schedule prostitution sessions and recruit other prostitutes.  Tate admitted that he took most of the proceeds from the prostitution business and distributed controlled substances to his prostitutes and others to manipulate and intimidate them.  In his plea agreement, Tate specifically admitted that he enticed a prostitute to travel from Baton Rouge to Las Vegas in December 2012 to engage in prostitution for him.

Three other individuals have already pleaded guilty and are awaiting sentencing for their roles in this sex trafficking ring.

The case is being investigated by the FBI’s New Orleans Division, Louisiana Attorney General’s Office, Louisiana State Police and East Baton Rouge, Louisiana, Sheriff’s Office, with assistance from the Baton Rouge, Louisiana, Police Department’s Narcotics Division, U.S. Marshals Service Fugitive Task Force and other law enforcement agencies.  The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.

PRESIDENT, VP & 3 OTHER MEMBERS OF DEVILS DICIPLES MOTORCYCLE GANG RECEIVE CONVICTIONS

FROM:  U.S. JUSTICE DEPARTMENT
Friday, February 20, 2015
The National President, Vice President, Warlord and Three Other Members of the Devils Diciples Motorcycle Gang Convicted of Racketeering and Drug-Trafficking Charges

After a four-month trial, a federal jury in the Eastern District of Michigan convicted six members of the Devils Diciples Motorcycle Gang today, including the national president, national vice president and national warlord, for their participation in various criminal acts, including violent crimes in aid of racketeering, methamphetamine production and trafficking, illegal firearms offenses, obstruction of justice, illegal gambling and other federal offenses.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office made the announcement.

“For too many years the Devils Diciples spread fear and violence throughout Michigan and the country,” said Assistant Attorney General Caldwell.  “This outlaw motorcycle gang thrived on intimidation and its ability to avoid prosecution – but no longer.  Through these convictions, we have decimated the gang and its leadership and helped secure justice for the communities they harmed.”

"These defendants were responsible for violence and trafficking in methamphetamine in Macomb County and across the country,” said U.S. Attorney McQuade.  “We are grateful for the work of the investigating agencies and the jury to bring them to justice."

“The defendants in this case perpetrated a broad range of violent criminal activities in support of their illegal enterprise,” said Special Agent in Charge Abbate.  “Today’s convictions, which targeted the leadership of this criminal organization, reflect the hard work and dedication of federal, state and local law enforcement, the Department of Justice Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Eastern District of Michigan.”

Devils Diciples national President Jeff Garvin Smith, aka “Fat Dog,” 60, of Mt. Clemens, Michigan; National Vice President Paul Anthony Darrah, aka “Pauli,” 50, of Macomb Township, Michigan; and National Warlord Cary Dale Vandiver, aka “Gun Control,” 56, of Sand Mountain, Alabama, were all found guilty by a jury of engaging in a RICO conspiracy, methamphetamine trafficking conspiracy, conspiracy to obstruct justice, violent crimes in aid of racketeering and various substantive charges.  Another prominent leader, Vincent John Witort, aka “Holiday,” 64, of Fontana, California, and a methamphetamine cook, Patrick Michael McKeoun, aka “Magoo,” 60, of Birmingham, Alabama, were found guilty of engaging in a RICO conspiracy and methamphetamine trafficking conspiracy.  David Randy Drozdowski, aka “D,” 38 of Fair Haven, Michigan, was found guilty by a jury of committing violent crimes in aid of racketeering and being a felon in possession of a firearm.  Scott William Sutherland, aka “Scotty Z,” 49, of Redford, Michigan, was acquitted by the jury of various charges, but previously pleaded guilty to being a felon in possession of a firearm.  Sentencing hearings will be scheduled at a later date before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan.

According to evidence presented at trial, the Devils Diciples (which is intentionally misspelled) is a motorcycle gang with its national headquarters in Clinton Township, Michigan.  The Devils Diciples operated regional chapters in cities throughout Michigan, Alabama, Arizona, California, Illinois, Indiana, Ohio and elsewhere, and engaged in criminal activities for financial gain.

Evidence presented at trial demonstrated that membership in the Devils Diciples is based in part on successful completion of a probationary period, followed by formal approval by one or more members or leaders.  Members, commonly referred to as “full patched members,” are required to own Harley Davidson motorcycles and are required to follow orders from the gang’s leadership, including orders to assault, threaten and intimidate others, to transport and distribute drugs, to lie to law enforcement and to hide or destroy evidence.  Members are also required to follow the Devils Diciples by-laws and attend regular meetings referred to as “church.”

According to evidence presented at trial, Smith was the National President and Darrah was the National Vice President of the gang.  In those roles, they were responsible for overall management of the activities of the other Devils Diciples members and chapters, including giving final approval to any activity generally affecting the gang as a whole.  Vandiver was the National Warlord – or enforcer – of the gang.  With other gang members, the leaders also participated directly in criminal activities both for financial gain on behalf of the Devils Diciples, and to protect the gang and its members.

Specifically, the evidence showed that in late 2007, Smith and Darrah were involved in the shooting of a Devils Diciples member who failed to abide by the gang’s rules.  And, in August 2008, Smith violently assaulted the girlfriend of another Devils Diciples member because he believed she disrespected him and the gang.

Additionally, the evidence showed that Smith possessed state and federal law enforcement manuals regarding outlaw motorcycle gangs marked “For Official Use Only” and “Law Enforcement Sensitive,” and numerous documents related to criminal matters involving members of the Devils Diciples, including police reports, search warrants, affidavits, indictments and witness interview transcripts.  The evidence showed that the documents were used for the purposes of counter-surveillance and to identify suspected informants.

The other defendants were also full patched members of the gang, who committed several other acts of violence.

For example, in August 2003, Witort and other gang members robbed, kidnapped and attempted to murder members of the gang’s Arizona Chapter for violating the gang’s rules.  Inside the Arizona clubhouse, the victims were bound with duct tape and zip ties, and severely beaten with firearms, tasers, knives, and other weapons.  The victims were then loaded into the bed of a pick-up truck, driven out into the desert, dumped into ravines, and left to die.  The evidence showed that Witort and Smith helped to plan the beatings and that Smith later congratulated one of the participants, telling him in a letter that the Devils Diciples were “all proud of you.”

Additionally, the evidence demonstrated that in 2012, at a bar in Chesterfield Township, Michigan, Drozdowski and another Devils Diciples member assaulted a perceived rival motorcycle gang member for being present in Devils Diciples territory.  The victim was knocked unconscious and suffered multiple fractures to his face and jaw.  Drozdowski and the other Devils Diciples member then ripped the leather vest off of the unconscious victim.

In addition to the defendants convicted today, 21 members and associates of the Devil’s Diciples have been pleaded guilty to various crimes as result of this investigation.  The investigation further resulted in the seizure of more than 60 firearms and more than 6,000 rounds of ammunition and the dismantling of eight methamphetamine manufacturing laboratories across the country.

The case was investigated by the FBI, the Michigan State Police, the Macomb County Sheriff’s Office and the County of Macomb Enforcement Team (COMET), with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Clair County Sheriff’s Office.  The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Eastern District of Michigan.

25 AB MEMBERS, ASSOCIATES INDICTED IN MISSISSIPPI & OKLAHOMA ON FEDERAL RACKETEERING CHARGES

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, November 20, 2014
Twenty-Five Alleged Aryan Brotherhood Members and Associates Indicted on Federal Racketeering Charges in Mississippi and Oklahoma

Fourteen alleged members of the Aryan Brotherhood of Mississippi, including four of its most senior leaders, have been indicted by a federal grand jury in the Northern District of Mississippi for conspiring to participate in a racketeering enterprise.  In a separate indictment, 11 alleged members and associates of the Universal Aryan Brotherhood of Oklahoma have been charged by a federal grand jury in the Northern District of Oklahoma for conspiring to participate in a racketeering enterprise, among other charges.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and U.S. Attorney Danny C. Williams of the Northern District of Oklahoma made the announcement.

In the Northern District of Mississippi, the 10-count indictment was returned on Oct. 23, 2014, and unsealed today.  Thirteen individuals were taken into custody today.  In the Northern District of Oklahoma, the four-count indictment was returned on Nov. 5, 2014, and unsealed on Nov. 10, 2014.  All of the charged defendants are in custody.

“The Aryan Brotherhood is a violent gang that has seeped from behind prison walls into communities throughout this nation,” said Assistant Attorney General Caldwell.  “Working in lockstep with our law enforcement partners and U.S. Attorneys’ Offices throughout the country, we are targeting and dismantling these gangs from the top general to the foot soldier so they can no longer terrorize our communities.”

“These charges resulted from an unprecedented collaboration of federal, state, and local law enforcement officers targeting a large scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams.  “This indictment represents a critical first step toward dismantling this violent organization and clearly signals that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”

“My office remains steadfast in its commitment to work in collaboration with law enforcement to disrupt and dismantle violent crime and gang activities,” said U.S. Attorney Williams.

According to the indictments, the Aryan Brotherhood of Mississippi (ABM) and Universal Aryan Brotherhood of Oklahoma (UAB) are violent, “whites only,” prison-based gangs with members operating inside and outside of state penal institutions in their respective states.  The gangs allegedly modeled themselves after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s.  The ABM was allegedly founded in 1984, and in early 2013, pursued unification with the Aryan Brotherhood of California in order to achieve national recognition.

The UAB was allegedly founded in 1993.  According to the Oklahoma indictment, the UAB has a militaristic structure comprised of a Main Council, Yard Captains and Soldiers.  The Main Council has ultimate authority in all gang matters.

The indictment alleges that both gangs enforced their rules and promoted discipline among members, prospects and associates through violence and threats against those who violated the rules or posed a threat to the gangs.  Members, and oftentimes associates, were required to follow the orders of higher-ranking members.

According to the Mississippi indictment, in order to be considered for ABM membership, a person must be sponsored by another ABM member.  Once sponsored, a prospective member must serve a probationary term of not less than six months, during which he is referred to as a prospect, and his conduct is observed by the members of the ABM.  The prospect is required to sign a “prospect compact,” swear to an oath of secrecy and declare a life-time commitment to the ABM.

The ABM allegedly has a detailed and uniform organizational structure divided into three separate geographic areas of control.  The state is overseen and directed by a three-member “wheel” commonly referred to as “spokes.”  The wheel has ultimate authority in all gang matters.  The indictment charges four alleged wheel members: Frank Owens, Jr, 44, aka “State Raised,” of D’Iberville, Mississippi; Perry Mask, 46, of Corinth, Mississippi; Stephen Hubanks, 45, of Rienzi, Mississippi; and Brandon Creel, 46, aka “Oak,” of Ellisville, Mississippi, with conspiracy to participate in the racketeering activities of the ABM, among other charges.  The indictment also charges 10 other alleged members of the ABM.  All 14 alleged members of the ABM are charged with conspiracy to participate in the racketeering activities of the gang and with involvement in murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and conspiracy to distribute methamphetamine.

The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

The Mississippi case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Drug Enforcement Administration; FBI; U.S. Marshals Service; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Bureau of Narcotics; Harrison County Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo Mississippi Police Department; North Mississippi Narcotics Unit; Tishomingo County Sheriff’s Office; Lee County Sheriff’s Office; Forrest County District Attorney’s Office; Prentiss County Sheriff’s Office; Jones County Sheriff’s Office; Harrison County Sheriff’s Office; and South Mississippi Metro Enforcement Team.

The Oklahoma case is being investigated by a multi-agency task force consisting of the U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Tulsa Police Department; ATF; Internal Revenue Service – Criminal Investigation Division; Tulsa County Sheriff’s Office; and Oklahoma Department of Corrections.

The cases are being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorneys’ Offices for the Northern District of Mississippi and the Northern District of Oklahoma.

ARMENIAN POWER LEADER RECEIVES 32 YEAR PRISON TERM FOR CRIMES

FROM:  U.S. JUSTICE DEPARTMENT

Wednesday, November 12, 2014

Armenian Power Leader Sentenced to 32 Years in Prison for Racketeering, Extortion and Fraud

A leader of the Armenian Power gang, who was convicted at trial of 57 counts for his role in a racketeering conspiracy that included extortion, bank fraud, and a sophisticated credit and debit card skimming scheme, was sentenced today to 32 years in prison.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Stephanie Yonekura of the Central District of California made the announcement.

Mher Darbinyan, aka “Hollywood Mike” and “Capone,” 39, of Valencia, California, was sentenced by U.S. District Judge R. Gary Klausner of the Central District of California.

According to the evidence presented at trial, Darbinyan was a leader of Armenian Power, a gang responsible for extortion, firearms offenses, fraud, and identity theft throughout the Los Angeles-area.  Among other activities, Darbinyan operated a sophisticated bank fraud scheme that used middlemen and runners to deposit and cash hundreds of thousands of dollars in fraudulent checks drawn on the accounts of elderly bank customers and businesses.  Separately, Darbinyan also organized and operated a sophisticated debit card skimming operation targeting customers of 99 Cents Only Stores across Southern California.  This expansive scheme involved the installation and use of skimmers to steal thousands of customers’ debit card numbers and PIN codes.

Evidence at trial also showed that Darbinyan conspired to extort money from a member of the Armenian community by threatening violence against the victim and his family members.  On two separate occasions, Darbinyan also possessed firearms and ammunition after having previously been convicted of felony grand theft for his role in a 2004 debit card fraud scheme.

Darbinyan was among 90 individuals charged in 2011 in two indictments targeting Armenian Power.  To date, 87 individuals have been convicted.  Two defendants are fugitives, and prosecutors dismissed charges against one defendant.

According to evidence presented during the Armenian Power trials, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s.  The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc.  Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates.  According to evidence presented during the Armenian Power trials, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions, and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.

The trial evidence also showed that Armenian Power leaders worked closely with powerful organized crime figures in Russia and Armenia, known as “thieves-in-law,” and members of the Mexican Mafia prison gang to commit criminal activities in the Los Angeles area and elsewhere.

These cases were investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, Glendale Police Department, Los Angeles Police Department, Burbank Police Department, Los Angeles Sheriff’s Department, Internal Revenue Service – Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and U.S. Secret Service.  The Huntington Beach Police Department and Beverly Hills Police Department provided assistance.

The cases are being prosecuted by Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Elizabeth Yang of the Central District of California.

FIVE ARYAN BROTHERHOOD OF TEXAS MEMBERS SENTENCED TO PRISON FOR RACKETEERING CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, October 8, 2014

Five Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering Conspiracy

Five Aryan Brotherhood of Texas (ABT) gang members from Dallas were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Today, James Lawrence Burns, 44, and Kenneth Hancock, 34, high-ranking members in the ABT’s hierarchical structure, were ordered to serve respective terms of 20 and 15 years in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas.  Yesterday, Dustin Harris, 30, and Christopher Morris, 39, were each ordered to serve 10 years in prison, while Clay Kirkland, 35, received a sentence of more than 11 years in prison.  An additional defendant – Bill Frank Weatherred, 29 – will be sentenced tomorrow.

According to information presented in court, the six men were admitted members of ABT, a powerful race-based, statewide organization that operates inside and outside of state federal prisons throughout Texas and the United States.  Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang.  ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.

The ABT was established in the early 1980s within the Texas prison system.  The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s.  Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise.  Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

In order to be considered for ABT membership, a person must be sponsored by another gang member.  Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

The defendants sentenced this week are six of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges.    

This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.

The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas.

BLACK P-STONES GANG MEMBER SENTENCED TO PRISON FOR 30 YEARS FOR RACKETEERING AND FIREARMS CHARGES

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, August 1, 2014

Black P-Stones Gang Member Sentenced to 30 Years in Prison on Racketeering Conspiracy and Firearms Charges

Marcellus Williams, aka “Math,” “P-Shooter” and “Manny,” 27, of Newport News, Virginia, was sentenced today to serve 30 years in prison, followed by five years of supervised release, for engaging in numerous gang-related crimes as a ranking member of the Black P-Stones, including shootings of rival gang members, robberies and drug dealing.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentence was imposed by U.S. District Judge Arenda Wright Allen.

According to a statement of facts filed with his plea agreement, Williams was a “First Superior” in the Black P-Stones, a violent street gang also referred to as the P-Stone Bloods and Cobra Stones.   The Black P-Stones operated primarily in the Beechmont, Courthouse Green and Woodview neighborhoods in the Denbigh area of Newport News, Virginia, and its members engaged in various criminal activities including murders, robberies, drug trafficking and obstruction of justice.   As a First Superior, Williams directed and participated in the gang’s criminal activities, including robberies, attempted murder and marijuana sales.

According to the statement of facts, on April 27, 2008, Williams and other Black P-Stones members participated in a broad-daylight shooting on Warwick Boulevard in Newport News targeting a rival gang member.   The rival was shot twice and injured in his mouth, neck and shoulder.

Additionally, on Dec. 10, 2008, Williams and other Black P-Stones members retaliated against a rival gang member who exhibited disrespect toward Williams’s girlfriend.   Approximately seven to eight bullets were fired at the rival gang member’s home in Williamsburg, Virginia, with bullets ripping through the living room and front door while two people were inside.

Further, on March 9, 2009, Williams and other Black P-Stones members shot at the home of a rival gang member in retaliation for a previous altercation.   The rival gang member and another individual were inside of the home during the shooting, and one bullet nearly struck one of the people inside.

Williams was charged in a superseding indictment on Dec. 9, 2013, and pleaded guilty on April 15, 2014, to one count of racketeering conspiracy and one count of possessing and discharging a firearm in furtherance of a crime of violence.

The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department, and the Virginia State Police.   The case is being prosecuted by Trial Attorneys Louis A. Crisostomo and Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia.

LAS VEGAS GANG MEMBER PLEADS GUILTY TO RACKETEERING, DRUG CHARGES

FROM:  U.S. JUSTICE DEPARTMENT

Tuesday, July 29, 2014

Las Vegas Street Gang Member Pleads Guilty to Racketeering and Drug Charges

On the second day of his federal jury trial, a Las Vegas Playboy Bloods street gang member pleaded guilty today to racketeering and drug charges, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division.

“We will use federal resources to prosecute street gang members who commit cowardly and horrible crimes in our community,” said U.S. Attorney Bogden.   “I commend the many law enforcement officers who worked on this investigation and assisted us in ensuring a conviction in this case.”

Markette Tillman, 31, pleaded guilty to one count of RICO conspiracy and one count of possession with intent to distribute cocaine base, and is scheduled to be sentenced by U.S. District Judge Kent J. Dawson on Oct. 28, 2014.   Tillman faces up to 20 years in prison on each count, as well as fines of up to $1 million.   The jury trial began yesterday, July 28, 2014, and the government had called seven witnesses to testify.   Tillman is the remaining gang member to be convicted out of 10 charged in a RICO indictment filed in 2008.

According to the guilty plea agreement and evidence produced at trial, the Bloods are a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence.   The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area.   The Playboy Bloods operate primarily in the Sherman Gardens Annex, a public housing complex, located at the corner of Doolittle and H Streets in Las Vegas, and commonly called the “Jets.”   On or about Jan. 20, 2004, Tillman aided and abetted the murder of a security guard at the Jets.   The guard approached Tillman and several other Playboy Bloods and told them to leave the property.   An argument ensued, and the guard rode away on his bicycle to get help.   One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him.   Tillman admitted that he aided and abetted the murder of the guard and acted deliberately and intentionally with extreme disregard for human life.   Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf.   Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine.   Tillman also admitted that he distributed crack cocaine to another person on about Jan. 3, 2007, at one of the drug houses.

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

MEMBERS OF ARYAN BROTHERHOOD OF TEXAS PLEAD GUILTY TO RACKETEERING

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, July 18, 2014

Aryan Brotherhood Members Plead Guilty to Federal Racketeering Charges

Two Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Kenneth Michael Hancock of Dallas, Texas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.   James Erik Sharron, aka “Flounder,” of Houston, Texas, pleaded guilty to the same charge on July 14, 2014.

According to court documents, Hancock, Sharron and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang.   Hancock, Sharron and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.

By pleading guilty to racketeering charges, Hancock and Sharron admitted to being members of the ABT criminal enterprise.

According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system.   The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s.   According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism.   Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise.   Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member.   Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

Hancock and Sharron are both scheduled to be sentenced on Oct. 8, 2014.   Each faces a maximum penalty of life in prison.

Hancock and Sharron are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.   To date, 34 defendants have pleaded guilty.

This Organized Crime Drug Enforcement Task Force   case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.

The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.

ASSOCIATE ORGANIZED CRIME FAMILY CONVICTED IN ILLEGAL TAKEOVER/LOOTING OF PUBLIC COMPANY

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, July 3, 2014

Member and Associate of Lucchese Organized Crime Family Convicted of Racketeering and Other Crimes

Attorney and CEO Also Convicted in Illegal Takeover and Looting of Publicly Traded Company

A member and an associate of the Lucchese organized crime family and two Texas brothers were convicted today of racketeering and other charges after a six-month trial.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman for the District of New Jersey made the announcement.

Nicodemo S. Scarfo, 49, of Galloway, N.J., a member of the Lucchese organized crime family of La Cosa Nostra (LCN) and Salvatore Pelullo, 47, of Philadelphia, an associate of the Lucchese and Philadelphia LCN families, were convicted of all the counts against them, including racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice.  Two other defendants, William and John Maxwell, were also convicted. Co-defendants David Adler, Gary McCarthy and Donald Manno were acquitted on all counts.

“Nicodemo Scarfo, Salvatore Pellulo and their cohorts used threats of physical and economic harm to take over a publicly-traded financial firm, then callously and systematically looted the company out of millions of dollars to buy luxury items for themselves,” said Assistant Attorney General Caldwell.   “As a result of today’s guilty verdict, this mafia member and his conspirators now face substantial prison sentences.”

“Today, four people stand convicted  for giving new meaning to ‘corporate takeover’ – looting a publicly traded company to benefit their criminal enterprise,” U.S. Attorney
Fishman said.  “The defendants stole more than $12 million from shareholders through rampant self-dealing, fraudulent SEC filings and intimidation. The public should not have to worry that the interests of shareholders are being subverted to benefit organized crime or for other corrupt ends.”

The jury deliberated two weeks before delivering its verdicts following a six-month trial before U.S. District Judge Robert B. Kugler in Camden federal court.   The defendants were charged in an indictment returned in 2011 by a federal grand jury in Camden.  It named Nicodemo D. Scarfo (Scarfo Sr.) – Nicodemo S. Scarfo’s father and the imprisoned former boss of the Philadelphia LCN family – and Vittorio Amuso, the imprisoned boss of the Lucchese family, as conspirators.

Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark, and Scarfo’s wife, Lisa Murray-Scarfo – have previously pleaded guilty to various charges related to their roles in the criminal scheme.

According to documents filed in this case and the evidence at trial:

Scarfo is a made member of the Lucchese family, having become a member after an attempt on his life in 1989 following an internal struggle for control of the Philadelphia family.    In the mid-1990s, while Scarfo Sr. and Amuso were in federal prison in Atlanta, Ga., Amuso arranged for Scarfo to become a member of the Lucchese family as a favor to Scarfo Sr.  As a member of the Lucchese family, Scarfo was required to earn money and participate in the affairs of the Lucchese family.

In April 2007, Scarfo, Pelullo and others devised a scheme to take over FirstPlus Financial Group Inc. (FPFG), a publicly-held company in Texas.  Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors of replaced those officers with individuals beholden to Scarfo and Pelullo, including William Maxwell, an attorney from Houston, Texas, and his brother, John Maxwell, of Irving, Texas, who acted as the company’s CEO.

Once the takeover was completed, the figurehead board named William Maxwell as “special counsel” to FPFG, a position that he used to funnel approximately $12 million to himself, Scarfo and Pelullo through fraudulent legal services and consulting agreements.  The agreements, as well as FPFG’s fraudulent acquisitions of companies controlled by Scarfo and Pelullo, were designed to mask the true identity and nature of the control exerted over FPFG and to conceal the source of the money fraudulently conveyed to Scarfo and Pelullo.

In a telephone call intercepted by law enforcement, Pelullo called Scarfo to tell him about the sudden death of a former FPFG executive.  This former executive had provided information to Pelullo and Maxwell that they used to extort control of FPFG.  At the time of his death, he was employed by FPFG as a member of its “compliance team.” During the conversation, Scarfo and Pelullo expressed relief regarding his death. After laughing about how he was “crushed” that “the rat is dead,” Pelullo acknowledged that the executive was “the only connection, the only tie to anything.”  Scarfo replied: “Oh boy.  Yeah, Sal, you wanna know something though?  That’s one that I know you can’t take credit for . . . [laughter] . . . and that’s the natural best thing.  You know what I mean?  That is so like Enron-ish.  You know what I mean?   Kenneth Lay, he bailed out and took a heart attack."

Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht for both defendants, a luxury home for Scarfo, a Bentley automobile for Pelullo, and thousands of dollars in jewelry for Scarfo’s wife.  As a direct result of the enterprise’s criminal activity, FPFG and its shareholders suffered a loss of at least $12 million.

Sentencing for Scarfo is scheduled for Oct. 22, 2014; for Pelullo, Oct. 21, 2014, and for both Maxwell brothers, Oct. 23, 2014.

This case was investigated by the FBI, Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives.   The case was prosecuted by Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey’s Organized Crime/Gangs Unit.

TENNESSEE BLOODS GANG MEMBER PLEADS GUILTY IN RACKETEERING CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, May 23, 2014

Bloods Gang Member Pleads Guilty to Racketeering Conspiracy in Tennessee

Kenneth Gaddie, aka K.G., 24, of Nashville, Tennessee, pleaded guilty to one count of racketeering conspiracy in federal court in Nashville, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney David Rivera for the Middle District of Tennessee and Special Agent in Charge Jeffrey L. Fulton for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division.

According to the plea agreement, from 2006 through December 2011, Gaddie was a member and associate of the Bloods gang.  He and other known Bloods gang members committed multiple acts of murder, robbery, and narcotics trafficking on behalf of the gang.

Gaddie and numerous Bloods gang members met at various locations in the Nashville area, including Shelby Park, Cedar Hill Park and the Galaxy Star Drug Awareness and Gang Prevention Center, on a regular basis to, among other things, report on gang-related business, collect dues, commit disciplinary actions against fellow gang members, discuss acts of violence against rival gang members and initiate or “jump in” new members by beating them.

Further according to the plea agreement, on June 25, 2008, Gaddie shot and wounded an individual in furtherance of the Bloods gang’s criminal enterprise.  Less than one month after this incident, on July 17, 2008, Gaddie and others shot at another individual.

Thirty-seven individuals have pleaded guilty or have been convicted at trial in the Middle District of Tennessee to various crimes related to their involvement in the Bloods gang.  Gaddie is the final defendant to be convicted of racketeering offenses in connection with this investigation.   He is scheduled to be sentenced on Aug. 21, 2014.

The investigation was a joint operation conducted by the ATF; the Metropolitan Nashville Police Department; U.S. Marshals Service; the LaVergne, Tennessee, Police Department; and the Davidson County, Tennessee Sheriff’s Office.  The case was prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee, and former Trial Attorney Cody Skipper of the Organized Crime and Gang Section.

STREET GANG MEMBER SENTENCED TO LIFE IN PRISON FOR VARIOUS CRIMES

FROM:  U.S. JUSTICE DEPARTMENT
Tuesday, October 22, 2013
Las Vegas Street Gang Member Sentenced to Life in Prison_for Racketeering, Murder, Firearm, and Drug Charges

A member of the Playboy Bloods street gang was sentenced today to life in prison for the retaliation murder of a man in November 2004 and the armed robbery of a Henderson, Nev., casino in 2002, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.

Jacorey Taylor, aka “Mo-B,” 30, who was convicted by a jury in May 2013, was sentenced by U.S. District Judge Robert C. Jones. Taylor was convicted of engaging in a racketeering (RICO) conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute.  He is the ninth gang member to be convicted out of 10 charged in a RICO indictment filed in 2008.  The remaining defendant, Markette Tillman, 31, is awaiting trial.

Taylor and co-defendants Reginald Dunlap, aka “Bowlie,” and Steven Booth, aka “Stevie-P,” were convicted of participating in the murder of Billy Ray Thomas, who was shot multiple times in the back on the morning of Nov. 1, 2004, as he worked on a car in the parking lot of the Pecos Terrace Apartments while waiting to take his girlfriend to work.  The defendants murdered Thomas due to their mistaken belief that Thomas was a member of a rival street gang.  According to evidence presented at trial, two car loads of Playboy Bloods members and associates, including Taylor, Dunlap, Booth and others, drove through known Crip neighborhoods searching for rivals to retaliate against for the murder of Quaza Burns, a leader of the Playboy Bloods.  The victim, Billy Ray Thomas, had no gang affiliation.

Evidence produced at trial also showed that on March 21, 2002, Taylor, armed with an AR-15 style assault rifle, and another man armed with an handgun entered the Klondike Casino in Henderson, forced their way behind the casino cage, and robbed the casino of over $7,000 in currency.

Dunlap and Booth pleaded guilty to racketeering conspiracy charges during Taylor’s trial and were each sentenced in April 2013 to 20 years in prison.  There is no parole in the federal criminal justice system.

According to court documents and evidence produced at trial, the Bloods are a nationally known criminal street gang whose members engage in drug trafficking and acts of violence.  The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area.  Other Bloods sets within the Las Vegas metropolitan area include the Piru Bloods and the West Coast Bloods.  A subset of the Playboy Bloods is the Full Throttle Clique, a group made up of Playboy Bloods members who engage in acts of violence, including murder.  According to evidence presented at trial, Taylor, Dunlap, and Booth were all members of the “Full Throttle Clique” of the Playboy Bloods.  Taylor, along with other Playboy Bloods enterprise members, operated drug houses in the Sherman Gardens Annex (also known as “The Jets”) and the surrounding areas.

Eight other defendants have been convicted and sentenced.

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