638 gang members arrested during #ProjectSouthBound Operation

More than 600 gang members and associates from 145 different gangs were arrested in 179 cities across the U.S. during Project Southbound, a month-long operation executed by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), which targeted gangs affiliated with the Sureños.

The Sureños, also known as Sur 13, is a transnational criminal street gang that originated in Southern California with hundreds of cliques around the United States. The Sureños and their affiliates pay tribute to the Mexican Mafia and the number “13” is their symbol signifying “M” in the alphabet for Mexican Mafia. Membership and cliques associated with the Sureños are expanding faster than any other national-level gang in the United States, according to the U.S. Department of Justice’s National Gang Intelligence Center’s 2011 National Gang Threat Assessment. Sureños gang members are involved in a myriad of criminal activity, including murder, extortion, narcotics trafficking, human trafficking, prostitution and other crimes with a nexus to the border.

Through Project Southbound, which ran March 12 to April 13, HSI special agents worked with 150 federal, state and local law enforcement partners to apprehend individuals from various gangs affiliated with the Sureños. More than 73 percent of those arrested during this HSI National Gang Unit-led operation were members or associates of the Sureños.

In addition to the 638 gang members and associates, HSI agents also arrested – or assisted in the arrest of – 119 other individuals on federal and/or state criminal violations and administrative immigration violations, for a total of 757 arrests.

“Project Southbound is the largest-ever ICE operation targeting the Sureños gang,” said ICE Principal Deputy Assistant Secretary Thomas S. Winkowski. “This gang now has more than 30,000 members in the United States and its numbers are growing. Targeting transnational gangs like the Sureños is a top priority for ICE and we will continue to disrupt and dismantle the violence and criminal activities that they inflict upon our neighborhoods.”

Of the 638 gang members or associates arrested: 525 were charged with criminal offenses; 113 were arrested administratively for immigration violations; 414 had violent criminal histories, including seven individuals wanted for murder and five wanted for rape or sexual assault; and 256 were foreign nationals.

Among the Sureños gang members or associates arrested during Project Southbound were:

• Cesar Lisandro Anaya, 27, an El Salvadoran national and an 18th Street gang member, arrested in Dallas, Texas, on immigration-related charges. He is wanted in El Salvador on felony warrants for aggravated homicide, extortion, and illicit groupings (gang activity). 
• Nine MS-13 gang members arrested on RICO charges filed in the District of Maryland stemming from their involvement in multiple criminal acts including murder, assault, extortion and prostitution, in furtherance of MS-13.
• Richard Allen Cotinola, a U.S. citizen and Brewtown Locos gang member, arrested in New Mexico on an outstanding state warrant for violation of parole related to a previous conviction for aggravated burglary with a weapon. He has previous convictions for aggravated burglary with a weapon and armed robbery.
• A father and son arrested in San Francisco on state narcotics and firearms charges following the execution of state search warrants on the father’s property. The father, a Sureños gang associate and previously deported aggravated felon, accused of supplying large quantities of high-quality, commercially-grown marijuana to Sureños and Latin Kings gang members. During these arrests, HSI agents seized 4,669 marijuana plants, 25 pounds of processed marijuana, an AR-15 rifle, a stolen Glock handgun, four diesel generators, four vehicles and $85,635 in cash.   

Those arrested during Project Southbound came from 21 countries in South and Central America, Asia, Africa and the Caribbean. Of the total 757 arrested, 678 were males and 79 were females.

HSI special agents also seized 54 firearms, 13.36 pounds of methamphetamine, 82.76 pounds of marijuana, 3.075 pounds of cocaine, 1.44 pounds of heroin, more than $166,000 in U.S currency and 10 vehicles during Project Southbound.

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Invest Your Money Wisely: Tips for Consumers

• Be extremely cautious about unsolicited offers to invest.

• Don’t believe everything you’re told. Take the time to do your own research on the investment’s potential…and on the person making the offer.

• Be wary of an investment opportunity that offers unusually high yields.

• Check with federal and state securities regulators to find out if there have been any complaints against the company or person you’re thinking of doing business with.

• Request written financial information—such as a prospectus, annual reports, or financial statements—then compare the written information to what you were told.

• Check with a trusted financial adviser, broker, or attorney about any investments you are considering.

• And if you think you’ve been scammed, report it to the Securities and Exchange Commission, your state’s securities regulator, or a law enforcement agency.

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The Despicable Story of Vernon Matthews and His Defrauding of Military Personnel and Their Dependents

They are our nation’s heroes—often risking their lives abroad to protect us at home. Which makes what one Virginia con man did all the more despicable…defrauding military personnel and their dependents in an investment fraud scheme. But one of his victims came forward and filed a complaint. And after a joint investigation conducted by the Richmond offices of the FBI and the U.S. Postal Inspection Service (USPIS)—under the auspices of the Virginia Financial and Securities Fraud Task Force—Vernon Matthews was charged in the scheme, pled guilty, and was recently sentenced to a federal prison term.

Matthews operated a company called First Capital Group (FCG), located in Virginia Beach. He had a license to sell insurance, not to give investment advice or handle securities—but that didn’t stop him from doing so. Starting in 2010 and continuing until early 2013, Matthews solicited members of the military and their families to make investments with FCG.

Often times, he set up booths at establishments known to be frequented by the military—like restaurants located near military bases—and offered promotions, like a free night at a hotel. And when potential victims came to his office to claim the prizes, Matthews would pitch them on an investment. And he lied through his teeth while doing it. Among Matthews’ misrepresentations:

• He received compensation from the U.S. government for his investment advice and services (he did not);
• He would invest his clients’ funds in certificates of deposits, mutual funds, or something similar (Matthews misappropriated all the funds for his own personal or business use);
• FCG was affiliated with several reputable investment companies and funds (it was not);
• The investment provided a good return—anywhere from 4 to 300 percent—and was low-risk or no-risk (it did not and was not).

In one particular instance, a U.S. Naval Academy graduate who invested $20,000 with FCG tried withdrawing funds. Matthews mailed a check that bounced. After being notified about it, he mailed another one…and instructed the victim not to deposit the check until he could put the funds into his account. That, of course, never happened.

Matthews received more than $235,600 from victim investors. Only a few of his victims were able to recover any money, so at his sentencing, the judge ordered Matthews to repay the outstanding balance of $204,465 in restitution to his victims.

The Bureau joined the investigation in April 2013. In July 2013—after an extensive review of financial records, documents, and e-mails, along with interviews of dozens of victims and other witnesses—Matthews was arrested.

The Virginia Financial and Securities Fraud Task Force was initially launched in 2010 to establish a partnership between criminal investigators—including the FBI and the USPIS—and civil regulators to investigate and prosecute complex financial fraud cases in Virginia. The state task force is also an investigative arm of the national Financial Fraud Enforcement Task Force, an interagency group created to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. And while law enforcement, civil regulators, and prosecutors are doing all they can to address financial crimes, you should educate yourself and your loved ones on how to avoid becoming a victim of financial fraud.

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3 Chicago Men Indicted for Their Alleged Roles in a Series of Armed Robberies of 10 Retail Businesses in Chicago and Suburbs

Three Chicago men are facing federal charges for their alleged roles in a series of armed robberies of various retail businesses in Chicago and several suburbs late last year and early this year, federal law enforcement officials announced. The indictments charge nine armed robberies and an attempted armed robbery of gas stations, convenience stores, jewelry stores, and others businesses in Chicago, Arlington Heights, Berwyn, Glenview, Hometown, Lincolnwood, North Chicago, Skokie, and Wilmette between October 2013 and February this year.

Two defendants, Tyree Craig, 29, and Jacobi Pickett, 21, were charged together in a 13-count indictment returned by a federal grand jury. They were each charged with one count of robbery conspiracy, eight counts of robbery, and two counts of brandishing a firearm during a violent crime, and Pickett alone was charged with being a felon in possession of a firearm.

Craig was also charged with Jarryl Williams, 42, in a separate four-count federal indictment involving the January 10 armed robbery, involving four suspects, of James and Williams Jewelers, located at 7020 West Cermak Road in Berwyn. Craig and Williams were each charged with one count of robbery conspiracy, attempted robbery, and brandishing a firearm. Williams, who was shot by a store security officer, was also charged with being a felon in possession of a firearm with a partially obliterated serial number.

Craig and Williams have each pleaded not guilty to the charges involving the Berwyn attempted robbery. Craig and Pickett are scheduled to be arraigned on May 1 in U.S. District Court. Craig and Williams were initially arrested previously on related state charges but were later transferred to federal custody, where they remain. Pickett has been in federal custody since he was arrested in March on a criminal complaint.

According to the Craig and Pickett indictment returned yesterday, both defendants allegedly participated in the following robberies:

• Dunkin Donuts, 3910 West Touhy Ave., Lincolnwood, on October 20, 2013
• Phillips 66 gas station, 1234 Sheridan Rd., North Chicago, on October 21, 2013
• Shell gas station, 9600 Crawford Ave., Skokie, on Oct. 21, 2013; Shell gas station, 3 East Algonquin Rd., Arlington Heights, on October 31, 2013
• Marathon gas station, 242 Waukegan Rd., Glenview, on October 31, 2013
• Shell gas station, 5055 Touhy Ave., Skokie, on Nov. 30, 2013; and Seven-Eleven, 500 Skokie Blvd., Wilmette, on November 30, 2013
• Craig alone was also charged with the December 13, 2013, robbery of Ted’s Jewelers, 5334 South Archer Ave., Chicago
• Pickett alone was charged with the February 19, 2014, robbery of EZ Pawn store, 4080 Southwest Hwy., Hometown, in which jewelry valued at approximately $73,000 was stolen

According to court documents, the charges stem from an FBI investigation of a series of similar armed robberies and attempted robberies last fall and winter of retail stores and businesses in Chicago, as well as northern and western suburbs. Typically, one or more participants entered each business and brandished a black semi-automatic handgun while demanding money or jewelry and, in some instances Newport cigarettes. The participant or participants attempted to disguise their appearance but video surveillance provided a similar pattern of clothing and appearance.

The investigation is continuing.

Each count of robbery and robbery conspiracy carries a maximum penalty of 20 years in prison and a $250,000 fine, and each count of brandishing a firearm carries a consecutive, mandatory minimum of seven years in prison and a maximum of life. Williams and Picket also faces a maximum 10-year sentence on the felon in possession charges.

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Buffy A. Bastien Indicted on Bank Embezzlement Charges

Buffy A. Bastien, 41, of Murphysboro, Illinois, was indicted on April 8, 2014, on bank embezzlement charges in an indictment returned by a federal grand jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.

Bastien was charged in a one count indictment that charges that from about 2010 to on or about February 23, 2014, in Jackson County, Bastien, being an officer and employee of The Bank of Carbondale, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud The Bank of Carbondale, did willfully embezzle the sum of approximately $229,221.80 of the moneys or funds intrusted to the custody or care of The Bank of Carbondale.

Bastien faces a possible penalty of up to 30 years’ imprisonment, up to $1,000,000 fine, and supervised release of up to five years.

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