District of Colorado
Press releases recorded for this federal judicial district.
Colorado Springs Man Pleads Guilty to Illegal Possession of Explosive DevicesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Dakota Ryan Halley, age 28, of Colorado Springs has pleaded guilty to possession of unregistered firearms, specifically explosive devices.
According to the plea agreement, in early May 2022, agents with the Bureau of Alcohol, Tobacco and Firearms (ATF) obtained information that the defendant and co-defendant Dalton Turner were in possession of two hand grenades. The investigation led to an undercover ATF agent arranging to purchase one of the explosive devices from the defendant. On May 12, 2022, the undercover agent purchased one grenade and a shotgun from the defendant. Later, the defendant agreed to sell additional grenades to the agent. A second sale occurred on May 21, 2022. That day, shortly before the defendant was to meet the undercover agent for the second sale, agents observed the defendant and Turner loading two vehicles with military style tactical gear, including bulletproof vests and firearms. Turner, the defendant, and a female each drove a vehicle to the location of the second sale. The defendant conducted the sale alone, but Turner and the female staged their vehicles strategically to serve as lookouts and maintained radio communication with the defendant. The sale was conducted in a garage, and the defendant attended the sale wearing military style tactical gear, including body armor, a firearm on his hip, additional magazines. The undercover agent purchased six grenades from the defendant. The defendant was arrested on June 8, 2022. A federal search warrant was executed on the apartment the defendant shared with Turner and the following items were recovered by ATF agents: 32 explosive devices, numerous firearms and more than 4,000 rounds of ammunition. The defendant had not registered the destructive devices in the National Firearms Registration and Transfer Record (NFRTR) as required by law.
The defendant pleaded guilty before Judge Daniel D. Domenico on March 6, 2023. He will be sentenced on May 30, 2023. Co-defendant Dalton David Turner pleaded guilty before Judge Daniel D. Domenico on January 26, 2023. He will be sentenced on April 19, 2023.
The Bureau of Alcohol, Tobacco and Firearms (ATF) Denver Division investigated this case. The prosecution is being handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 22-cr-00183-DDD
Aurora Man Indicted for Firearms ViolationsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Timothy Taconi, age 69, of Aurora, has been indicted for dealing firearms without a license and possession of an unregistered firearm.
According to the indictment, from August 2020, through February 5, 2023, the defendant, not being a licensed dealer of firearms, engaged in the business of dealing in firearms. The defendant knowingly received and possessed a silencer, which is not registered to him in the National Firearms Registration and Transfer Record.
The defendant made his initial appearance before Magistrate Judge Scott T. Varholak on February 24, 2023.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Division handled the investigation. Assistant United States Attorneys Kelly Churnet and Rebecca Weber are handling the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 23-cr-00058
Colorado Springs Man Convicted of Drug TraffickingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces a federal jury found Thomas O’Hara II, age 56, of Colorado Springs, guilty of conspiracy to distribute methamphetamine and possession of methamphetamine with the intent to distribute it.
According to facts presented at trial, on June 1, 2021, the Denver Division of the Federal Bureau of Investigations (FBI), the Rocky Mountain Division of the Drug Enforcement Administration (DEA), and the Colorado Springs Police Department executed several search warrants in the Colorado Springs area. At O’Hara’s residence, investigators recovered one-and-a-half pounds of methamphetamine, one pound of heroin, approximately 800 fentanyl pills, two loaded handguns, and drug trafficking paraphernalia. At O’Hara’s wife’s apartment, investigators found and seized $112,027 in cash and additional drug trafficking paraphernalia. Finally, at a third residence associated with O’Hara, investigators located six-and-a-half pounds of methamphetamine.
Judge William J. Martinez presided over the 6-day trial, which ended on March 1, 2023. The defendant will be sentenced on October 25, 2023. Each count of which the defendant was convicted carries a sentence of no less than 10 years and up to life in prison. The jury found the defendant not guilty of possessing heroin and fentanyl with the intent to distribute them.
The investigation was conducted by the FBI Denver Division, DEA Rocky Mountain Division, and the Colorado Springs Police Department. The prosecution is being handled by Assistant United States Attorneys Peter McNeilly and Alexander Duncan.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CASE NUMBER: 21-cr-190-WJM-1
Pueblo Man Sentenced to 11 Years in Federal Prison for Armed RobberyRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Perry Sean Lohnes, age 38, of Pueblo, was sentenced to 11 years in federal prison for robbery and brandishing a firearm during a crime of violence.
According to the plea agreement, on April 11, 2022, the defendant went to a fast food restaurant located on East 8th Street in Pueblo. The defendant was wearing a camouflage style jacket and facemask. He approached the counter, ordered food and then sat down to eat it. He later came back to the counter and started taking money out of the register. An employee of the restaurant confronted the defendant and the defendant immediately pulled a handgun from his pocket and pulled back on the slide of the handgun. This caused one round of ammunition to be expelled from the handgun, and it landed in the cash register. The defendant pointed the firearm at the employee and told her to “get back.” The defendant then took cash out of the cash register and ran toward a local park.
“We are taking an aggressive approach to prosecuting violent criminals in Pueblo,” said United States Attorney Cole Finegan. “This case is one example of excellent work from our law enforcement partners working together to make Pueblo a safer community. This type of violence will not be tolerated.”
“This sentence represents the unwavering teamwork between FBI Denver and our law enforcement partners like the Pueblo Police Department and the Pueblo County Sheriff’s Office to ensure dangerous criminals are no longer a threat to the public,” said Federal Bureau of Investigation (FBI) Denver Acting Special Agent in Charge Leonard Carollo. “The FBI remains committed to working with all our local, state, and federal partners to keep our communities safe.”
Judge Daniel D. Domenico sentenced the defendant on March 1, 2023.
This case was investigated by the Federal Bureau of Investigation (FBI) Denver, with assistance from the Pueblo Police Department and the Pueblo County Sheriff’s Office. The prosecution was handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 22-cr-00197
Wells Fargo Agrees to Training on New Companywide Policy to Improve Telephone Access by Customers Who are Deaf or Hard of HearingRead the Press Release
DENVER—The U.S. Attorney’s Office for the District of Colorado announced that it has resolved a complaint under the Americans with Disabilities Act (ADA) made by a Wells Fargo customer who is hard of hearing relating to accessing Wells Fargo’s banking services via telephone. In the resolution, Wells Fargo has adopted changes to its companywide ADA policy for communications with customers with disabilities and agreed to provide training to its call center representatives on the new policy.
The complainant, who has difficulty hearing and speaking on the telephone, attempted to use her caregiver to relay information on her behalf on telephone calls with Wells Fargo customer service representatives. The complainant was a consumer banking and credit card customer with Wells Fargo, and some of her telephone inquiries related to fraudulent charges that had been made using her credit card. The complainant alleged that Wells Fargo refused to permit the caregiver to assist the complainant, which prevented her from receiving services over the telephone. This refusal forced the complainant to visit Wells Fargo bank branches in-person during the COVID-19 pandemic in the summer and fall of 2020.
The ADA requires that places of public accommodation allow individuals with disabilities to use appropriate auxiliary aids and services, including by allowing others to communicate on their behalf, in order to ensure effective communication so that they can receive equal service from businesses and other public accommodations.
To resolve the complaint, Wells Fargo agreed to pay the complainant $10,000. In addition, Wells Fargo made changes to its companywide ADA policy to clarify that companions of individuals with disabilities may provide communication assistance. Wells Fargo also agreed to train call center employees and other customer service representatives on the policy. Wells Fargo also agreed to reach out to other customers who had made complaints about the same issue and notify them of the policy change. These companywide changes and efforts may affect numerous individuals nationwide, as Wells Fargo serves approximately one in three households in the United States, with approximately 4,700 banking locations across the country.
“The U.S. Attorney’s Office is committed to ensuring that customers with hearing disabilities can access the same customer services that are offered to other customers,” said U.S. Attorney Cole Finegan. “We applaud Wells Fargo’s cooperation in adopting companywide policy changes and providing training to ensure that its customer service representatives provide equal access for customers with disabilities.”
Additional information about the U.S. Attorney’s Office’s civil rights enforcement program can be found at https://www.justice.gov/usao-co/civil-rights-enforcement.
This case was handled by Assistant U.S. Attorney Zeyen Wu.
Mexican National Sentenced to Federal Prison for Drug TraffickingRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Jesus Ruiz Velasco-Ochoa, age 38, of Guadalajara, Mexico, was sentenced to 8 years in federal prison after earlier pleading guilty to conspiracy to distribute and possession with intent to distribute more than 50 grams of methamphetamine.
According to the plea agreement, co-defendant Candelaria Vallejo-Gallo, based in Aurora and Denver, organized the interstate transportation and local distribution of large quantities of illegal drugs. Co-conspirators worked with Mexico-based sources of supply to arrange pickups of illegal drugs from California-based intermediaries working with and for those Mexico-based sources of supply. During the course of the FBI's investigation into her activities, Vallejo-Gallo arranged for the transport of large quantities of methamphetamine, heroin, cocaine, and fentanyl. To effectuate her scheme of drug distribution, Vallejo-Gallo employed a network of co-conspirators, including interstate load runners, local runners, local multi-pound drug customers (who would, in turn, distribute to lower-level drug distributors), and lieutenants to coordinate the activities of the aforementioned coconspirators.
The defendant served as one of the primary interstate load runners for the conspiracy, which lasted from at least March 19, 2019, until February 12, 2020. On July 31, 2019, for example, intercepted calls indicated the delivery of 46 pounds of methamphetamine in a load carried by the defendant. On October 21, 2019, two co-defendants started a load run to California at Candelaria Vallejo-Gallo’s direction, where they coordinated with the defendant and others to pay for drugs and transport drugs back to Colorado. On their way back to Colorado on October 23, 2019, Utah State Patrol stopped them and refused to allow the defendant, who was driving the load vehicle, to drive any further because he was unlicensed. Another co-defendant took over driving. The defendant transferred the methamphetamine he was carrying to the co-defendant so that she could complete the run. The Colorado State Patrol (CSP) conducted a traffic stop on the vehicle. A narcotics K-9 on scene alerted to the presence of narcotics in the vehicle. Based on the positive dog sniff, CSP searched the vehicle, discovering approximately 53 pounds of methamphetamine in a large suitcase inside the trunk of the sedan.
“Today’s announcement is the result of a lengthy investigation and prosecution of several defendants, which would not have been possible without the diligent work of our many law enforcement partners,” said United States Attorney Cole Finegan. “This combined effort took a significant drug trafficking organization off the streets of Denver and Aurora.”
“This individual was a member of a drug-trafficking organization (DTO) that distributed significant amounts of methamphetamine, fentanyl, heroin and cocaine onto the streets of metro Denver. As a result of this multi-agency investigation, this DTO is no longer operational in Denver and Aurora,” said Acting Special Agent in Charge Leonard Carollo. “FBI Denver is committed to working with federal, state and local partners in operations like this to dismantle DTOs, mitigate the distribution of illegal drugs and make our communities safer.”
“This multi-agency investigation and subsequent lengthy sentencing sends the strong message that HSI will use every resource and authority necessary to hold those accountable that jeopardize the safety of our communities for profit,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “This investigation that stretched across multiple states and crossed international borders can only be accomplished by dedicated law enforcement professionals that adopt a “One Badge” philosophy.”
“Targeting the profits generated by drug traffickers is a key step in the investigative process, and vital to disrupting and dismantling their organization,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “IRS-CI, our law enforcement partners, and the United States Attorney’s Office will continue to work together to eliminate this threat to our communities.”
United States District Court Judge Raymond Moore sentenced Velasco-Ochoa on February 24, 2023.
Agents and deputies assigned to the Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force from the FBI, HSI, ICE ERO, IRS-CI, and the Douglas County Sheriff’s Office conducted the investigation and were assisted by officers and deputies from the DEA, the Colorado State Patrol, the Aurora Police Department, and the Arapahoe County Sheriff’s Office. Assistant United States Attorney Cyrus Y. Chung handled the prosecution of the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Case number: 20-cr-0028
Morrison Man Indicted for Covid FraudRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Richard Rejan Nieto, age 37, formerly of Morrison, has been indicted on three counts of wire fraud and five counts of money laundering for taking money that he received as a result of fraudulent Paycheck Protection Program (PPP) applications he submitted.
In late March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted, and extended emergency financial assistance to millions of Americans suffering economic harm from the COVID-19 pandemic. The CARES Act expanded existing Small Business Administration programs, including the Economic Injury Disaster Loan (“EIDL”) program, and established new temporary programs, including the Paycheck Protection Program (“PPP”).
According to the indictment, from April of 2020, through April of 2021, the defendant allegedly devised and participated in a scheme to defraud the United States and a lender. The defendant unjustly enriched himself by obtaining $913,551.88 in PPP loans. He obtained the loans by inflating payroll costs, making false statements and certifications, and submitting fake tax returns. Having unjustly obtained PPP loans, he then applied for loan forgiveness for the full amount of the PPP loans. He obtained forgiveness of $176,956.09 through false representations and by submitting fake payroll checks. He allegedly laundered money through large money transfers between bank and investment accounts, including a $40,000 transfer to a cryptocurrency account in January 2021, to purchase Bitcoin. The United States has previously executed seizures of fraud proceeds from the defendant’s E*Trade investment account and from two cryptocurrency trading accounts.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
The Internal Revenue Service-Criminal Investigation (IRS-CI) investigated this case. Assistant United States Attorneys Craig Fansler and Martha Paluch are handling the prosecution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case number: 22-cr-00262
Colorado Man Sentenced to Federal Prison for Role in Money Laundering ConspiracyRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces that Jason Lee Henderson, age 36, formerly of Wray, Colorado, has been sentenced to 28 months in prison for conspiring to commit money laundering. Henderson was also ordered to serve three years of supervised release and pay $400,858.07 in restitution. The court also imposed a forfeiture money judgment in the amount of $399,452.
According to the plea agreement, from March 2020, until October 2020, Henderson was part of a conspiracy to launder funds obtained from a government official impersonation scheme. Victims in the United States were contacted by telephone and coerced into believing they were under investigation by “Agents” of federal law enforcement agencies (the FBI, SSA, DHS, Treasury, or U.S. Drug Enforcement Administration). It was further part of the conspiracy that the conspirators told these victims that their identities had been connected to a criminal incident, that their imminent arrest and/or deportation from the United States had been ordered by law enforcement, and that the only way to avoid arrest and or deportation was to pay the “Government” large sums of money, as instructed. The victims were instructed to withdraw cash from their bank accounts and mail the cash to various addresses, which turned out to be Walgreens stores in northeastern Colorado.
Henderson was paid to use fake identification cards to pick up victims’ packages of cash mailed to the Walgreens stores in Colorado. The government has identified 57 victims who in total have lost over $7.5 million through this scheme. Of that $7.5 million, $1.6 million in cash was mailed to Colorado. Video surveillance from these stores and text messages from the defendant’s phone tied him to specific fake identification cards used to pick up the packages.
United States District Court Judge Raymond P. Moore sentenced Henderson on February 23, 2023.
This investigation is being conducted jointly with investigators from the Social Security Administration (SSA) Office of Inspector General (OIG), United States Postal Inspection Service, Department of Homeland Security-OIG, Homeland Security Investigations (HSI), and the Sterling, Colorado Police Department. The District Attorney for the 13th Judicial District has also provided assistance. This case is being prosecuted by Assistant U.S. Attorneys Martha A. Paluch and Laura B. Hurd.
Case number: 22-cr-202
Aurora Felon Sentenced to More Than 19.5 Years in Prison for Weapons ViolationsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Robert Vandori Johnson, age 40, of Aurora, was sentenced to more than 19.5 years in federal prison after a jury convicted him of being a felon in possession of a firearm.
According to facts presented at trial, on February 1, 2022, Denver police officers were searching for Daevon House due to an outstanding arrest warrant. After locating him, they observed House and Johnson drive to an apartment complex in Denver, Colorado. Both went into an apartment and came back out a short time later. As House and Johnson got back into the car, officers stopped the car and attempted to arrest House. When officers approached, House ran. He was carrying a firearm which he dropped as he fled before being taken into custody. House had previously been convicted of a felony, making it illegal for him to possess a firearm or ammunition. Johnson was contacted and escorted from the driver seat of his car vehicle. As he exited the vehicle, a semiautomatic pistol dropped from his waistband. Johnson had previously been convicted of a felony offense making it unlawful for him to possess a firearm or ammunition.
The jury returned its guilty verdict on November 16, 2022. Judge Philip A. Brimmer presided over Johnson's two day trial. On February 17, 2023, Judge Raymond P. Moore sentenced Johnson to 235 months in prison, followed by five years of supervised release.
Co-defendant Daevon House, age 30, of Denver, previously pled guilty to being a felon in possession of a firearm or ammunition. Judge Raymond P. Moore sentenced House to 91 months in prison on August 9, 2022.
“We are working aggressively with the ATF and the Denver Police Department to take dangerous felons with guns off the streets of Denver,” said United States Attorney Cole Finegan. “If you are a convicted felon caught with a firearm or ammunition, you can expect to face severe consequences.”
"The presence of two felons who are unlawfully carrying firearms on our streets is a clear indication of impending violent crime,” said Acting ATF Special Agent in Charge Kirk Howard. “Our partnership with the Denver Police Department, along with the successful prosecution by the US Attorney's Office, underscores our shared determination to make our communities a safer place."
The investigation was handled by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Denver Police Department. The prosecution was handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 22-cr-00046-RM
Colorado to Receive More Than 4.5 Million Dollars to Combat Gun ViolenceRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces the Colorado Department of Public Safety will receive $4,564,438 awarded by the U.S. Department of Justice to fund efforts combatting gun violence.
The Justice Department announced 49 awards to states, territories, and the District of Columbia as part of the Byrne State Crisis Intervention Program. The total investment of more than $231 million will fund state crisis intervention court proceedings, including but not limited to, extreme risk protection order (ERPO) programs that work to keep guns out of the hands of those who pose a threat to themselves or others. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence.
“The Justice Department is working relentlessly to protect communities from violent crime and the gun violence that often drives it, and the Byrne State Crisis Intervention Program is an important part of that effort,” said Attorney General Merrick B. Garland. “These awards will support the kinds of crisis intervention programs that we know save lives and help protect children, families, and communities across the country from senseless acts of gun violence.”
“The Department of Justice’s strategy to reduce violent crime and gun violence includes prioritizing support for successful, evidence-based programs,” said Deputy Attorney General Lisa O. Monaco. “The grants announced today invest in and highlight proven state and local violence prevention and intervention programs, that will make our communities safer.”
These awards, administered by the Department’s Office of Justice Programs’ Bureau of Justice Assistance (BJA), provide funding to states for the creation and implementation of extreme risk protection order programs, state crisis intervention court proceedings, and related gun violence reduction initiatives. Extreme risk protection order programs empower family members, health care providers, school officials and law enforcement officers to petition a court to temporarily prevent a person from accessing firearms if they are found to be a danger to themselves or others. Funds can also support interventions like drug, mental health and veterans’ treatment courts, gun violence recovery courts, behavior health deflection and outpatient treatment centers.
“Protecting communities from gun crime is an urgent public safety challenge and a critical part of the Justice Department’s work to ensure that everyone in this country can live free from the fear of violence,” said Associate Attorney General Vanita Gupta. “The resources we are announcing today will give communities the tools they need to prevent firearm violence and deliver support to those who are at risk of committing or being victimized by gun crime.”
The Bipartisan Safer Communities Act also seeks to ensure that extreme risk protection order laws and programs are implemented in accordance with the Constitution and provide for adequate due process protections. Projects funded under this program will need to demonstrate that they have taken measures to safeguard the constitutional rights of an individual subject to a crisis intervention program or ERPO initiative. The Justice Department has long supported state efforts to increase the use of ERPOs and in 2021 the Department released model legislation to help states create their own extreme risk protection order systems and provide for intervention before warning signs turn into tragedy.
"The fight against violent crime and gun violence is a priority for the U.S. Attorney’s Office. We recognize this effort requires an innovative approach, including effective enforcement, prosecution, prevention, and meaningful community engagement. We are confident this funding will help create safer communities, while promoting responsible gun ownership," said United States Attorney Cole Finegan.
“The Colorado Attorney General’s Office is committed to ensuring that our state red flag law saves as many lives as possible. These federal funds from the Byrne State Crisis Intervention Program will help us achieve that goal by improving our training for law enforcement and our outreach to the public,” said Colorado Attorney General Phil Weiser.
"We are excited to partner with the Justice Department to help protect communities across Colorado through this grant program by providing law enforcement and district attorney offices with the resources and tools they need to make an impact in reducing volent crime and gun violence," said Colorado Department of Public Safety Director Stan Hilkey.
Signed into law by President Biden in June 2022, the Bipartisan Safer Communities Act is the most significant piece of federal gun safety legislation in almost three decades and comes as a response to recent mass shootings and to the far more common, but no less tragic, incidents of community gun violence. Including the Byrne State Crisis Intervention Program, the law allocates a total of $1.4 billion to OJP over five years to develop, implement, and sustain meaningful investments in safer communities.
“These awards will help meet two monumental public safety challenges — the alarming proliferation of gun violence in our country and the clear need for front-end interventions to slow the cycle of violence and victimization in our most underserved communities,” said BJA Director Karhlton F. Moore. “The Bureau of Justice Assistance is proud to make these resources available to states as a critical part of its mission to reduce and prevent crime and to promote a fair and effective criminal justice system.”
For a full list of awards, please visit: https://data.ojp.usdoj.gov/stories/s/O-BJA-2023-171458/b5xz-as5z/. These awards are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
Colorado Laser Technology Company Agrees to Pay More Than $400,000 to Resolve Allegations that it Improperly Used Foreign SubcontractorsRead the Press Release
DENVER – Vescent Photonics, Inc., a laser technology company located in Golden, Colorado, agreed to pay $402,621 to resolve allegations that it violated the False Claims Act by using contractors located outside of the United States in research projects funded by the Small Business Innovation Research (SBIR) program.
The SBIR program is a federal program intended to foster eligible small businesses in the United States through federally funded research and development awards. Awards are made by various government agencies to eligible small businesses for them to use domestically, in conducting research and developing technology with potential commercial benefits. The government does not own the research it subsidizes through the SBIR program or share in the profits from commercial applications. In order to ensure that taxpayer dollars are properly spent, the Small Business Administration, and each agency issuing awards, publishes eligibility requirements for participation in the program. One eligibility requirement for SBIR funds is that all research and development must be performed in the United States. More details on the SBIR program are available at https://www.sbir.gov/faqs/general-questions.
According to the United States, Vescent, a company that conducts research and development of complex laser technologies, applied for and received two SBIR awards, one from the National Aeronautics and Space Administration (NASA), and one from the United States Air Force. Vescent then subcontracted with two foreign nationals, located in foreign countries, to perform research and development on these SBIR projects. In doing so, Vescent failed to comply with the SBIR requirement that all research and development be performed in the United States, and violated the False Claims Act.
“SBIR funds are intended to help support qualified small businesses in the United States, and to encourage domestic innovation and domestic technology development,” said U.S. Attorney Cole Finegan. “Diverting SBIR funds to foreign nationals located abroad undermines the purpose of this funding and violates the rules of the SBIR program.”
“Protecting research and development programs funded by NASA is a priority for the NASA Office of Inspector General (OIG). The settlement agreement with Vescent Photonics is the result of a joint effort to protect SBIR contracts from fraud and abuse, and this case demonstrates the commitment of the NASA OIG and our law enforcement partners to work with the U.S. Attorney’s Office to investigate and prosecute companies that defraud SBIR programs,” said Bob Steinau, Assistant Inspector General for Investigations, NASA OIG.
“This case demonstrates the dedication of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to tirelessly investigate fraudulent conduct that undermines the integrity of the SBIR program,” said DCIS Assistant Inspector General Paul Sternal. “The outcome in this case reflects our steadfast commitment to hold those who defraud the United States Government and the Department of Defense accountable for their actions.”
“This settlement represents the combined efforts of partnering agencies to defend programs designed to assist domestic small businesses to ensure they are able to thrive and compete. We are fully committed to ensuring integrity within Air Force-funded acquisition programs,” said James P. Stoddard, Special Agent in Charge of the U.S. Air Force, Office of Special Investigations (OSI).
The claims resolved by this settlement are allegations only.
This matter was investigated by NASA OIG, the DCIS, and the U.S. Air Force OSI. It was handled by Assistant U.S. Attorney Zeyen Wu.
Westminster Man Sentenced to 124 Months in Federal Prison for Weapons and Drug Trafficking ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Michael Thomas Delguidice, age 62, of Westminster, was sentenced to 124 months prison and 3 years supervised release for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
According to the plea agreement, on December 5, 2020, Westminster police were dispatched to a residence for a domestic disturbance, where the victim reported her car had been shot the night before. She reported that she then received a text from the defendant asking her to go to Blackhawk with him. She refused and the defendant texted back: "Ready for round two then?" The victim reported that Delguidice was circling her block on his motorcycle. When police contacted Delguidice, they found baggies of methamphetamine totaling 93 grams, a loaded .38 caliber revolver, two speed re-loaders and $3,405 in his jacket. They also found a stolen 10mm Glock semi-automatic handgun and ammunition in his motorcycle bag. Shell casings from the previous night’s drive-by shooting were tested and matched the 10mm handgun in the bag.
Judge William J. Martinez sentenced the defendant on February 7, 2023.
The FBI Rocky Mountain Safe Streets Task Force and the Westminster Police Department investigated this case. Prosecution was handled by Assistant United States Attorney Brian Dunn.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 21-cr-00007
Former Durango Restaurant Owners Sentenced on Felony Tax Evasion ConvictionsRead the Press Release
Durango – The United States Attorney’s Office for the District of Colorado announces that Kenneth and Suzanne Fusco, of Durango, Colorado were each sentenced to six months of house arrest, 150 hours of community service, a $25,000 fine, more than $160,000 of restitution, and five years of probation supervision after pleading guilty to tax evasion.
According to the plea agreement, public filings, and evidence presented at the sentencing hearing, the Fuscos operated a restaurant called Ken & Sue’s on Main Street Durango for twenty-two years. When the Fuscos put their restaurant up for sale in February 2020, an investigation was initiated and the Fuscos were found to have overstated their business expenses to reduce their tax liability from 2014-2019. During the course of the investigation Suzanne Fusco stated, “we’re masters at,” and then Kenneth Fusco finished the sentence with the word “disguising.” The codefendants then proceeded to explain that they hid various personal expenses as business expenses to lessen their tax liability. Based on that information, the IRS executed a search warrant on the premises of the restaurant on August 26, 2020.
IRS Criminal Investigation special agents showed that the defendants intentionally categorized nearly a million dollars of their personal expenses as business expenses, resulting in underpaid taxes of over $160,000.
Senior Judge Robert E. Blackburn sentenced the defendants on February 7, 2023.
“This sentence will justly restrict the defendants' liberty for five years, require significant community service, and ensure full repayment to the American taxpayers. This serious crime would not have been detected and prosecuted but for the great work of our partners at the IRS-CI,” said United States Attorney Cole Finegan.
“The U.S. tax system is critical to funding vital government services for our citizens and we protect the integrity of our system by ensuring everyone pays their fair share,” said Andy Tsui, Special Agent in Charge, IRS-CI Denver Field Office. Today’s sentencing demonstrates our commitment to identifying and investigating business owners who attempt to evade their tax obligations and serves as an example that violators will not go unpunished.”
The investigation was conducted by the Internal Revenue Service, Criminal Investigation Division, in Durango, Colorado. Prosecution was handled by Assistant United States Attorneys Jeffrey K. Graves and Nicole C. Cassidy.
Case Number: 22-cr-00311
Boulder Man Sentenced to Prison for Covid FraudRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Russell Bryant Lester, age 41, of Boulder, was sentenced to 30 months in prison for taking money from pandemic relief funds by filing false applications. Lester was also ordered to pay restitution in the amount of $584,851.75.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program.
On November 15, 2020, Lester pleaded guilty to one count of wire fraud. According to the plea agreement, from March 2020, through August 2020, Lester made false statements to obtain EIDL and PPP loans. During the same period, Lester also made false statements to the Colorado Department of Labor and Employment about not being employed in any capacity in order to collect pandemic unemployment benefits from the state. The SBA funded four EIDLs for a total of $217,400, awarded three grants through the EIDL program totaling $16,000, and funded two PPP applications in an amount totaling $317,975. A third PPP loan application—requesting a loan of $297,200—was not funded. In April 2020, Lester applied for pandemic unemployment benefits from the Colorado Department of Labor and Employment. In his application for unemployment benefits, he stated that he was not currently working or receiving pay as a result of the COVID-19 pandemic, and that he had not received pay since January 15, 2020. Subsequently, between April and October 2020, Lester completed weekly certifications wherein he falsely stated he did not work or receive any money or payments from an employer. As a result of these false certifications, he collected $17,578 in pandemic unemployment benefits from the state of Colorado. Lester knew these certifications to be false: in reality, he received $551,175 in COVID-relief funds in this period, some of which he used to pay himself. Lester spent portions of EIDL and PPP loan proceeds for non-eligible expenses, including paying old debts unrelated to the businesses receiving the loans and extending high-interest loans to other individuals.
Judge Daniel D. Domenico sentenced the defendant on February 7, 2023. He also ordered the defendant to serve a term of three years on supervised release.
“This defendant took funds intended as a lifeline for struggling businesses and used them for his personal piggy bank. In the process, he concocted a whole set of lies and brought others into his crime,” said United States Attorney Cole Finegan. “We thank our partners at the FBI and SBA for their continuing work to hold accountable criminals who try to cheat the system.”
“The amount of pandemic program fraud we have seen is staggering. This was intended to be a financial safety net to help struggling families, support small businesses and keep the economy afloat -- not a way for criminals to fund their lifestyles, like this one who stole hundreds of thousands of dollars,” said FBI Denver Special Agent in Charge Mark Michalek. “FBI Denver will continue to rigorously investigate those who defraud the taxpayer-funded pandemic relief program.”
This case was investigated by the Federal Bureau of Investigations (FBI) Denver Division, with assistance from the Small Business Administration (SBA). The prosecution is being handled by Assistant United States Attorneys Craig Fansler, Sarah Weiss, and Rebecca Weber.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
CASE NUMBER: 21-cr-00230
Pueblo Felon Sentenced to 190 Months in Federal Prison for Drugs and Weapons ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Kenneth Lawrence Baca, age 44, of Pueblo, was sentenced to 190 months in federal prison after pleading guilty to possession with intent to distribute methamphetamine and felon in possession of a firearm.
According to the plea agreement, on October 12, 2021, Pueblo police detectives were investigating Baca after receiving an anonymous tip that the defendant was selling a large amount of narcotics. A detective messaged Baca, in an undercover capacity, via Facebook messenger. Baca agreed to sell heroin and methamphetamines. On October 13, 2021, the conversation continued and they agreed to meet at Baca’s hotel room in Pueblo. Officers set-up surveillance in the parking lot of the motel and observed Baca pull into the parking lot in a truck with no front license plate and an expired registration. Officers also knew that Baca didn’t have a valid driver’s license. Officers conducted a traffic stop. Given his history, an officer informed Baca that he would be patted down for weapons. Baca replied that he had a pistol in his right pants pocket. Baca was immediately placed into custody and the firearm was retrieved from his pants. A search of the truck found a backpack containing methamphetamine, fentanyl, heroin, a digital scale, $1,746 in U.S. currency, a notebook that appeared to be a drug ledger, and a wallet containing Baca’s identification cards. In the motel room registered to Baca, officers recovered fentanyl, methamphetamine, drug paraphernalia, a suspected drug ledger, and $1,018 in U.S. currency. At the time Baca possessed the firearm and ammunition, he was on supervised release after serving time in prison for a previous felon in possession conviction.
Judge Regina M. Rodriguez sentenced the defendant on February 1, 2023.
“This defendant repeatedly committed crimes with no regard for the law. The fact that the defendant was on supervised release when he committed these crimes exemplifies this solemn reality. This sentence achieves the goals of deterring such criminal conduct, while simultaneously protecting our community from drugs and weapons,” said United States Attorney Cole Finegan.
"This sentencing highlights the collaboration and teamwork between the FBI and our law enforcement partners like the Pueblo Police Department, whose efforts were instrumental in this case," said FBI Denver Special Agent in Charge Mark Michalek. "FBI Denver remains committed to working closely with the Pueblo Police Department to ensure that dangerous criminals are no longer menacing the public. The FBI prioritizes keeping our communities safe by finding, investigating, and dismantling criminal operations one person at a time, as we did with this repeat offender peddling illegal drugs."
The investigation was conducted by the Federal Bureau of Investigations (FBI) Denver Division and the Pueblo Police Department. Prosecution was handled by Assistant United States Attorney Daniel Warhola and the Transnational Organized Crime and Money Laundering Section of the U.S. Attorney’s Office.
CASE NUMBER: 21-cr-00387
Loveland Man Charged and Detained in Connection with Arson Church FireRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Darion Ray Sexton, age 21, of Loveland, has been arrested and charged by criminal complaint with causing damage to a Loveland Church by fire. Sexton was ordered detained today pending trial by United States Magistrate Judge James P. O’Hara. Sexton had been arrested and charged in a criminal complaint filed on January 23, 2023.
According to allegations in the criminal complaint, in the late evening of January 19, 2023, law enforcement responded to an active fire at church in Loveland, Colorado. First responders extinguished a fire at the front door of the church and then found evidence of another fire in the church basement, which appeared to have been extinguished by the emergency sprinkler system. A broken glass bottle was recovered from the front door near the fire, and the area smelled like gasoline. In the basement, another broken bottle was found, along with a partially melted plastic bottle. Analysis from the ATF indicated that the areas of fire damage were separate and concluded there were multiple areas of fire origin. A doorbell camera at the church captured a masked individual throwing a “Molotov-cocktail”-type destructive device at the church’s front door. Footprints in the snow near the church led to a neighborhood and to the defendant’s residence. Law enforcement later found a plastic bottle at the defendant’s home that was similar to the plastic bottle found in the church basement. Additionally, law enforcement reviewed video from a Loveland liquor store two days prior to the fire showing a man who appears to be the defendant purchasing liquor bottles similar to the broken glass bottles found at the church.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Loveland Police Department. Assistant United States Attorney Bryan Fields is handling the prosecution.
The charge in the complaint is an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
CASE NUMBER: 23-mj-00026
U.S. Attorney's Office Files Suit Against Landlord Alleging Sexual Harassment of TenantRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced that it has filed a civil complaint in federal district court alleging that Vernon C. Morgan, Jr., violated the Fair Housing Act by discriminating on the basis of sex when he subjected a former tenant at a property he owns in Greeley, Colorado, to sexual harassment, and by retaliating against her by attempting to evict her after she confronted him about the harassment and obtained a civil protection order against him.
The lawsuit stems from a complaint that the tenant filed with the United States Department of Housing and Urban Development (HUD), which, after an investigation by HUD’s Office of Fair Housing and Equal Opportunity, found reasonable cause that discrimination and retaliation had occurred. The tenant made an election under the Fair Housing Act to have the Department of Justice, through the U.S. Attorney’s Office, file a complaint on her behalf.
“The U.S. Attorney’s Office is committed to protecting tenants who are subjected to unwanted sexual advances and comments,” said U.S. Attorney Cole Finegan. “Sexual harassment related to housing is particularly egregious because everyone should be able to feel safe in their home. The U.S. Attorney’s Office will continue to work with HUD to investigate and hold accountable landlords who violate the Fair Housing Act.”
Additional information about the Fair Housing Act, including information about how to file a complaint, can be found on HUD’s website at https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview.
The claims made in the complaint are allegations that, if the case proceeds to trial, the government must prove by a preponderance of the evidence.
This case is being handled by Assistant U.S. Attorneys Jennifer Lake and Zeyen Wu.
Colorado Man Sentenced to Federal Prison for Role in Money Laundering ConspiracyRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces James Albert Witte, age 69, formerly of Wray, Colorado, was sentenced to 26 months in federal prison for conspiracy to commit money laundering. Witte was also ordered to serve three years of supervised release and pay $763,089.21 in restitution to the victims of the scheme.
According to the plea agreement in the case, from January of 2020 until September of 2020, the defendant was part of a conspiracy to launder funds obtained from a government official impersonation scheme. Victims were contacted by telephone and coerced into believing they were under investigation by “agents” of federal law enforcement agencies (the FBI, SSA, DHS, Treasury, or DEA). It was further part of the conspiracy that the conspirators told these victims that their identities had been connected to a criminal incident, their imminent arrest and/or deportation from the United States had been ordered by law enforcement, and that the only way to avoid arrest and or deportation was to pay the “Government” large sums of money, as instructed. The victims were instructed to withdraw cash from their bank accounts and mail the cash to various addresses, which turned out to be Walgreens stores in northeastern Colorado. Witte’s role in the scheme was to use fake identification cards provided to him by a conspirator to pick up victims’ packages of cash mailed to the Walgreens stores. He used some of the cash to purchase money orders, which one of his codefendants then deposited into third-party accounts. The cash contained in 33 packages picked up by Witte, the shipping costs for those packages, and shipping costs for another 15 packages that were either intercepted by law enforcement or a victim, resulted in a loss to the victims of $763,089.21. Witte received a percentage of the cash in each package he picked up.
Judge Raymond P. Moore sentenced the defendant on January 20, 2023.
This investigation was conducted jointly with investigators from the Social Security Administration (SSA) Office of Inspector General (OIG), United States Postal Inspection Service, Department of Homeland Security-OIG, Homeland Security Investigations (HSI), and the Sterling, Colorado Police Department. The District Attorney for the 13th Judicial District also provided assistance. This case was prosecuted by Assistant U.S. Attorneys Martha A. Paluch and Laura Hurd.
CASE NUMBER: 22-cr-00202
Evergreen Man Arrested for Making Threats of Violence to Law Enforcement Agencies and a Performing Arts GroupRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Kyle William Staebell, age 33, of Evergreen, has been arrested and charged by criminal complaint with making threats to commit mass violence.
According to the criminal complaint, in the early morning hours of January 16, 2023, the defendant allegedly made threats of violence to the Federal Bureau of Investigation (FBI) office in Denver, an office of the Department of Homeland Security, and a Colorado-based performing arts group. Staebell made one such threat directly to FBI’s offices using the FBI’s National Threat Operations Center online tip line. He made another series of threats using a social media account. He also used email to make a threat of violence to the performing arts group.
The defendant made his initial appearance before Magistrate Judge James P. O’Hara on January 17, 2023.
“The U.S. Attorney’s Office takes very seriously any threat to commit mass violence. We commend our law enforcement partners for taking swift action to investigate this case. We specifically want to thank the FBI, the Denver Police Department, the Lakewood Police Department, and the Jefferson County Sheriff’s Office,” said United States Attorney Cole Finegan.
This case is being investigated by the Federal Bureau of Investigation (FBI) Denver Division. Assistant United States Attorneys Andrea Surratt and Laura Cramer-Babycz are handling the prosecution.
The charges in the complaint are allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
CASE NUMBER: 23-mj-00016
Westminster Man Indicted for Distribution of a Controlled Substance Resulting in DeathRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Ameen Alai, age 49, of Westminster, has been indicted on one count of distribution of ibogaine, a Schedule I controlled substance, resulting in death.
According to the indictment, on or about March 19, 2021, the defendant, also known as “Adam Powars,” knowingly and intentionally distributed a mixture and substance containing a detectable amount of ibogaine, the use of which resulted in the death of an individual on or about March 19, 2021.
If convicted, this charge carries a penalty of 20 years to life in prison. The charge contained in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The defendant made his initial appearance before Magistrate Judge S. Kato Crews on January 12, 2023.
The Drug Enforcement Administration (DEA) Rocky Mountain Division and the HIDTA Front Range Task Force (FRTF) conducted the investigation in this case. The United States Marshals Service took the defendant into custody after a 3-month fugitive investigation. The prosecution is being handled by Assistant United States Attorney Cyrus Y. Chung.
CASE NUMBER: 22-cr-00339-RM
Two Thornton Women Sentenced for Money Laundering Related to a Denver-area Drug Trafficking OperationRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces that Maria Aurora Garcia-Paulino, age 41, of Thornton, was sentenced to 24 months in federal prison for money laundering related to a Denver-area drug trafficking operation. Co-defendant Laura Iveth Trujillo-Solano, age 44, of Thornton, was sentenced to 72 months in federal prison for conspiracy to commit money laundering.
In February 2021, Garcia-Paulino and Trujillo-Solano were named in a 13-person indictment for a conspiracy to launder funds derived from the distribution of heroin, fentanyl pills, and methamphetamine in the Denver area. According to the plea agreements, from April 10, 2020 through March 31, 2021, Garcia-Paulino and Trujillo-Solano controlled a series of businesses in a strip mall located at 88th Ave. and Washington St. in Thornton, Colorado, which included Fiesta Multiservices. These two defendants would receive the proceeds from the drug activity at Fiesta Multiservices, typically in large currency amounts. As part of their operation, before transferring the money to Mexico they would divide the funds into smaller increments to evade various reporting and identification requirements imposed by money service businesses. According to court documents, from April 10, 2020, to January 28, 2021, Trujillo-Solano transferred or directed the transfer of drug trafficking proceeds totaling between $3,500,000 and $9,500,000 from the business in Thornton, and Garcia-Paulino handled or aided in the transfer of between $250,000 and $550,000 of that amount.
Judge Daniel D. Domenico sentenced Garcia-Paulino on January 10, 2023. She is the last of her co-defendants in federal custody to be sentenced. Judge Domenico sentenced Trujillo-Solano on December 8, 2022. Marduk Ernesto Ruiz-Leon, also listed in the indictment, remains a fugitive.
“These defendants took part in a multi-million dollar money laundering and drug trafficking operation that was shut down because of excellent work by our investigating partners at IRS Criminal Investigations and the DEA,” said United States Attorney Cole Finegan. “The U.S. Attorney’s Office will continue to prosecute the people who run these types of criminal organizations.”
“IRS Special Agents are experts in disrupting and dismantling drug trafficking organizations by targeting their illegal profits used to finance their operations,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “IRS-CI, our law enforcement partners, and the United States Attorney’s Office will continue to work together to eliminate this threat to our communities. Today’s sentence should send a clear message to others who engage in money laundering associated with narcotics, you will be caught and you will be prosecuted.”
“Today’s sentencing affirms DEA’s commitment to attack drug networks from every angle,” said DEA Rocky Mountain Division Special Agent in Charge Brian Besser. “The DEA will continue to use all of its investigative resources to break down criminal enterprises who intend to harm our communities.”
This case was investigated by the Drug Enforcement Administration (DEA) and IRS Criminal Investigation (IRS-CI). Assistant United States Attorney Cyrus Y. Chung handled the prosecution.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF is a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CASE NUMBER: 21-cr-00063
Haitian National Sentenced to Federal Prison for Firearms TraffickingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Peniel Olibris, age 32, of Denver, was sentenced to one year and one day in federal prison, plus one year of supervised release, for smuggling goods, specifically firearms, from the United States to Haiti.
According to the plea agreement, the defendant came to the attention of law enforcement in October 2019 when a manager at a firearms store in Arvada reported a suspicious customer. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began investigating Mr. Olibris’ other recent firearm purchases and learned he had recently purchased a number of pistols from another firearms store. ATF agents also determined, after Mr. Olibris’ background check was delayed, he went in to purchase firearms with an associate. In total, between February 2019 and June 2020, the two purchased 77 firearms. Law enforcement agents spoke with Mr. Olibris in July 2020, at which time he admitted to shipping “a few” firearms to Haiti, where he is from and where some of his family members still live. He explained that he placed the firearms in boxes inside of cars, and had the drivers take the cars from Colorado to Florida. In Florida, one of Mr. Olibris’ associates coordinated with the shipping company to send the cars containing firearms to Haiti. Mr. Olibris explained that he was trying to obtain a federal firearms license that would enable him to sell firearms but had not yet done so. According to documentation from the shipping company located in Fort Lauderdale, Florida, Mr. Olibris shipped thirteen cars to Haiti between September 30, 2019, and May 29, 2020. The terms and conditions for each shipment required Mr. Olibris to affirm the vehicles did not contain firearms, which are “prohibited by law.”
United States District Court Judge Regina M. Rodriguez sentenced Peniel Olibris on January 12, 2023.
“Illegal firearms trafficking – whether within the United States or across international borders – poses a serious threat to the safety of our communities,” said United States Attorney Cole Finegan. “We will continue to work with our law enforcement partners to disrupt the flow of these firearms, which have the potential to contribute to the incidence of violent crime.”
“The illegal flow of firearms fuels violence and places innocent people in danger and is responsible for the loss of lives daily,” said ATF Acting Special Agent in Charge Kirk Howard. “In our continued partnerships with Homeland Security Investigations and other federal, state and local partners, we will continue to vigorously pursue illegal firearms traffickers and hold them accountable for their reckless and illegal trades.”
“This sentencing sends the very clear message that HSI and our partners will relentlessly investigate and prosecute those who try to transport weapons across state lines with the ultimate goal of smuggling them overseas,” said Ryan L. Spradlin, special agent in charge, HSI Denver. “Our dedicated special agents and intelligence professionals will stop at nothing to ensure that weapons never make it into the hands of dangerous criminal organizations.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI) conducted the investigation. Assistant United States Attorneys Laura Cramer-Babycz and Albert Buchman handled the prosecution of the case.
CASE NUMBER: 22-cr-00119
Grand Junction Man Sentenced to Life in Federal Prison for Distribution of Fentanyl Resulting in DeathRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Bruce Holder, age 57, of Grand Junction, was sentenced to life in federal prison. Holder was convicted of conspiracy to distribute fentanyl and counterfeit substances, distribution of fentanyl resulting in death, distribution of fentanyl, and distribution of a counterfeit substance, after an 11 day trial in April 2021.
Facts presented at trial established that Holder worked in conjunction with multiple co-conspirators, including his wife, children, and other members of his family, to distribute pills that appeared to be legitimate 30mg Oxycodone pills, but in fact were counterfeit and spiked with fentanyl. Between 2017 and 2018, Holder imported tens of thousands of these pills from Mexico into Western Colorado where he and his co-conspirators distributed them for substantial profit.
In 2017, a young man died after using one of the pills. Evidence presented at trial established that this man would not have died but for the fentanyl present in the counterfeit pills distributed by Holder and his co-conspirators. Despite knowing of this death, and hearing of other concerns, Holder and his co-conspirators continued to import and distribute these counterfeit pills. This continued even after Holder’s arrest in August 2018. Evidence at trial also showed that, following his arrest, Holder discussed with co-conspirators plans to destroy evidence and possibly murder a cooperating witness.
United States District Court Judge Christine M. Arguello presided over the trial and sentenced the defendant on January 11, 2023.
“It has taken more than five years to get justice for the victims’ families. We hope this brings them some amount of peace,” said United States Attorney Cole Finegan. “We could not have gotten to this point without the hard work and dedication from our law enforcement partners at the DEA, the FBI, Homeland Security, the Grand Junction Police Department, and the Mesa County Sheriff’s Office. We hope this sentence sends a strong message to fentanyl dealers that we will hold you accountable to the fullest extent of the law if your illicit drugs kill people in our state.”
“First and foremost, I want to thank the investigators and prosecutors who tirelessly worked on this case for years with tenacity and compassion. It was their relentless determination that made it possible for us to see justice for these families,” said DEA Rocky Mountain Special Agent in Charge Brian Besser. “There is no outcome that will bring back loved ones; but we do hope today is a small step forward for the families, and a stark reminder that DEA’s work to protect our communities from dangerous and greedy fentanyl distributors continues this very hour and we will not stop.”
The Drug Enforcement Administration (DEA) Rocky Mountain Division conducted the investigation, with the assistance of the FBI, ATF, HSI, USMS, Western Colorado Drug Task Force, Two Rivers Drug Enforcement Team (“TRIDENT”), Carbondale Police Department, Fruita Police Department, Grand Junction Police Department, and the Mesa County Sheriff’s Office. Special Assistant United States Attorney Jaime Pena and former assistant United States Attorney Jeremy Chaffin and handled the prosecution of the case, with the assistance of Victim/Witness Coordinator Donna Summers.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CASE NUMBER: 18-cr-00381-CMA-GPG
For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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Two Denver Men Arrested for Fentanyl DistributionRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces the arrests of Santos Lopez Avalos, 22, of Denver, and Jesus Enrique Astorga-Castillo, 41, of Denver, for allegations of distribution and possession with intent to distribute more than 400 grams of fentanyl.
According to the complaints against the defendants, on January 4, 2023, Denver police officers conducted a traffic stop of Lopez Avalos that led to the discovery of a duffel bag containing 75 clear plastic bags of suspected fentanyl pills. Each bag contained between 500 to 1,000 pills. The officers’ investigation led them to an apartment on Dartmouth Avenue in Denver. On January 4, 2023, Denver police officers searched that apartment, belonging to Astorga-Castillo, and found 11 more clear plastic bags of suspected fentanyl pills. Each bag contained between 500 to 1,000 pills.
The two defendants made their initial appearances before United States Magistrate Judge S. Kato Crews on January 6, 2023.
This investigation is being conducted by the Denver Police Department, the Department of Homeland Security, U.S. Immigration and Customs Enforcement, the Drug Enforcement Administration (DEA) Rocky Mountain Division and the HIDTA Front Range Task Force. Assistant United States Attorney Cyrus Y. Chung is handling the prosecution.
The charges contained in the complaints are allegations and the defendants are presumed innocent unless and until proven guilty.
CASE NUMBER: 23-mj-00003, 23 -mj-00004
Colorado Springs Man Sentenced to 20 Years in Federal Prison for Providing Deadly Fentanyl to TeenRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Nathaniel David Corser, age 23, of Colorado Springs, was sentenced to 20 years in prison today for distribution of fentanyl resulting in death.
According to the plea agreement, on July 4, 2021, the defendant met 19-year-old Kaeden Norlander at Cottonwood Creek Park in Colorado Springs for a drug deal they had arranged through text messages. At the park, the defendant sold the victim two blue pills with imprints which said “M” and “30.” Although the pills appeared to be prescription oxycodone pills, they actually contained fentanyl. Over the course of the next day, the victim ingested both pills. Late in the morning on July 5, the victim’s aunt discovered him dead in his bedroom. The El Paso County Coroner’s Office conducted an autopsy on July 6, 2021, and ruled his death was the result of fentanyl intoxication.
The plea agreement also states, after the young man’s death, officers found text messages on his phone which appeared to relate to him buying the pills that killed him. A Colorado Springs Police detective used the victim’s phone to communicate with the defendant, and arranged to buy five pills which he described as “30s.” After the transaction, the Colorado Springs Police Department Metro Crime Lab tested the five blue pills and determined they contained fentanyl. A search of the defendant’s apartment led to the discovery of 1,089 dosage units of 30mg morphine sulfate pills packaged in 13 small zip-top baggies with crosses on them, 108 dosage units of 200mcg fentanyl buccal tablets in the manufacturer’s packaging, two blue tablets with “M” and “30” imprinted on them, which contained fentanyl, one loaded semi-automatic 9mm handgun, and a second loaded 9mm magazine.
Judge Daniel D. Domenico sentenced the defendant on January 5, 2023. “Selling these drugs these days is not the same as selling drugs before. It’s like shooting a gun randomly out in public, you never know what these pills may do what it did here,” said Judge Daniel D. Domenico before imposing the sentence of 240 months, followed by three years of supervised release.
“This is the longest sentence to date in federal court in Colorado for distribution of fentanyl resulting in death, and it should send a loud and clear message to drug dealers and drug traffickers. Our law enforcement partners will track you down and we will prosecute you if you peddle this poison in our communities,” said United States Attorney Cole Finegan. “Lives are at stake, and we will use every available tool to combat this deadly epidemic and stop these tragic losses.”
“Fentanyl is insidious in many of the communities in our state, and FBI Denver has made it a priority to assist our local law enforcement partners in these tragic cases," said FBI Denver Acting Special Agent in Charge Leonard Carollo. "In this instance, working with the Colorado Springs Police Department, we were able to bring to justice the drug dealer who was responsible for the death of a young man. This sentence means there is one less dealer peddling tainted pills to unsuspecting teens and other members of our community.”
“Fentanyl is a drug that destroys lives, and the Colorado Springs Police Department is committed to holding individuals responsible whose actions rip apart families,” said Chief of Police Adrian Vasquez. “We thank all of our federal partners for moving forward on federal charges and helping to remove Mr. Corser from our streets.”
This case was investigated by the Federal Bureau of Investigation (FBI) Denver Division and the Colorado Springs Police Department’s Metro, Vice, Narcotics, and Intelligence Division (Metro VNI). Assistant United States Attorneys Peter McNeilly and Alyssa Mance handled the prosecution.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF is a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CASE NUMBER: 21-cr-00331
With permission from Laurie Norlander Victim Kaeden Norlander and his mother, Laurie NorlanderU.S. Attorney's Office to Host Several Protecting Houses of Worship Training Seminars Across the StateRead the Press Release
The United States Attorney’s Office for the District of Colorado announces it will co-host several Protecting Houses of Worship (PHOW) events in Grand Junction, Fort Collins and Boulder in the coming weeks. These interfaith events are open to the public and will focus on providing faith-based institutions with information from law enforcement and faith-related security experts about the threats of violence facing houses of worship and responsive measures to counter potential risks.
Grand Junction: January 9, 2023 from 6-8 p.m. at the First Presbyterian Church at 3940 27½ Road
Fort Collins: January 19,2023 from 6-8 p.m. at Plymouth UCC Church, UCC at 916 W. Prospect Road
Boulder: February 21, 2023 from 6-8 p.m. at the Boulder Jewish Community Center at 6007 Oreg Avenue
If interested in attending one of these seminars, please RSVP to Jillian Dardani at [email protected].
The PHOW programs are interfaith events hosted at a community center, church, mosque, synagogue or other faith-based facility for participation by all interested faith-based organizations in the city or region.
The upcoming events are sponsored by The U.S. Attorney’s Office for the District of Colorado, Community Relations Service, Rocky Mountain Region, and the Mesa County Sheriff’s Office, the Fort Collins Police Department and the Boulder County District Attorney’s Office.
Sunset Mesa Funeral Home Operators Sentenced to Federal Prison for Illegal Body Part SchemeRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced today that the operators of Sunset Mesa Funeral Home in Montrose, Colorado, were sentenced to federal prison for illegally selling body parts or entire bodies without the consent of the family of the deceased.
Megan Hess, age 46, was sentenced to 20 years in prison after earlier pleading guilty to one count of mail fraud and aiding and abetting. According to the plea agreement, from 2010 through 2018, the defendant and others stole the bodies or body parts of hundreds of victims, and then sold those remains to victims purchasing the remains for body broker services. Under the auspices of Sunset Mesa Funeral Directors, the defendant would frequently meet with victims seeking cremation services for themselves or their loved ones who had died. During those meetings, the defendant and others would represent to the victims that Sunset Mesa Funeral Directors would cremate decedents and provide their cremated remains back to the families. Instead, the defendant and others would harvest body parts from, or prepare the entire bodies of, the decedents for sale in body broker services.
Shirley Koch, age 69, was sentenced to 15 years in prison after earlier pleading guilty to one count of mail fraud and aiding and abetting. According to the plea agreement, from 2010 through 2018, Koch was involved in meeting with families seeking cremation services for their loved ones who had died. In many instances, Koch and Hess neither discussed nor obtained authorization for donation of decedents’ bodies or body parts for body broker services. In other instances, the topic of donation was raised by Hess or Koch, and specifically rejected by the families. In such circumstances, despite lacking any authorization, Koch and Hess recovered body parts from, or otherwise prepared entire bodies of hundreds of decedents for body broker services. In the few instances where families agreed to donation, Hess and Koch sold the remains of those decedents beyond what was authorized by the family, which was often limited to small tissue samples, tumors, or portions of skin. Hess and Koch also delivered cremains to families with the representation that the cremains were that of the deceased when, frequently, that was not the case.
According to the plea agreements, Hess and Koch would also ship bodies and body parts that tested positive for, or belonging to people who had died from, infectious diseases, including Hepatitis B and C, and HIV, after certifying to buyers that the remains were disease free. These shipments would be through the mail or on commercial air flights in violation of Department of Transportation regulations regarding the transportation of hazardous materials.
Judge Christine M. Arguello sentenced Hess and Koch on January 3, 2023.
“The defendants’ conduct was horrific and morbid and driven by greed. They took advantage of numerous victims who were at their lowest point given the recent loss of a loved one. We hope these prison sentences will bring the victim’s family members some amount of peace as they move forward in the grieving process,” said U.S. Attorney Cole Finegan. “We sincerely hope this punishment deters like-minded fraudsters in the future.”
“These two women preyed on vulnerable victims who turned to them in a time of grief and sadness. But instead of offering guidance, these greedy women betrayed the trust of hundreds of victims and mutilated their loved ones,” said FBI Denver Acting Special Agent in Charge Leonard Carollo. “Without knowledge or consent, the women disrespected the wishes of the grieving victims and degraded the bodies of their family members to sell them for profit. These two criminals continued in their atrocities for years, showing no remorse or contrition even after they were exposed. Nothing can guarantee solace for the victims or repair the damage done, but perhaps this sentence can mark the end of a horrible chapter in their lives.”
“Together with our law enforcement and prosecutorial partners, we are committed to pursuing those who put the safety of the public at grave risk for personal gain,” said Cissy Tubbs, Special Agent-in-Charge, Western Region, U.S. Department of Transportation Office of Inspector General. “We hope today’s sentencing provides a sense of justice served for the families and loved ones of the victims of this callous scheme.”
This case was complex and involved a detailed forensic review of evidence. The investigation was led by the FBI Denver Division and the Department of Transportation Office of the Inspector General. This case was prosecuted by Assistant U.S. Attorney Tim Neff, Assistant United States Attorney Rebecca Weber, Assistant United States Attorney Laura Hurd, with invaluable assistance from former Assistant United States Attorney Jeremy Chaffin and Victim Witness Coordinator Donna Summers.
CASE NUMBER: 20-cr-00098
U.S. Attorney’s Office Collects $41,562,706.60 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
(DENVER) - U.S. Attorney Cole Finegan announced today that the District of Colorado collected $41,562,706.60 in criminal and civil actions in Fiscal Year 2022. Of this amount, $4,245,736.91 was collected in criminal actions and $37,316,969.69 was collected in civil actions.
The District of Colorado also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,855,053.04 in cases pursued jointly by these offices. Of this amount, $741,651.73 was collected in criminal actions and $1,113,401.31 was collected in civil actions.
The district’s Asset Recovery Division, led by Chief Tonya Andrews, working with partner agencies, also forfeited $23,307,938.73. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. In January and August, the District of Colorado recovered over $13 million in COVID-fraud related funds in the Folk and Citi Bank cases, involving individuals who fraudulently applied for and received COVID-relief funds from the Small Business Administration.
“As a result of exceptional work by the Asset Recovery Division and our Civil Division, in coordination with our law enforcement partners, more than $41 million was recovered this year,” said U.S. Attorney Cole Finegan. “These collected funds will assist victims in their recovery process and aid law enforcement as they continue to hold criminals accountable for their crimes.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Colorado Springs Felon Charged with Firearm PossessionRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces a federal grand jury has indicted Leon Askew, age 50, of Colorado Springs, for firearm and ammunition possession by a convicted felon.
According to allegations in the indictment, the defendant possessed a firearm and ammunition on January 31, 2022, while knowing he had previously been convicted of a felony.
The defendant made his initial appearance before Judge N. Reid Neureiter on December 30, 2022.
“We appreciate the dogged determination of our law enforcement partners at the U.S. Marshals Service and the ATF. It took more than six months to track down this individual, and we are relieved he was finally taken into custody without incident,” said United States Attorney Cole Finegan.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case. The United States Marshals Service (USMS) took the defendant into custody, with assistance from U.S. Immigration and Customs Enforcement (ICE) and the Colorado Springs Police Department. Assistant United States Attorney Al Buchman is handling the prosecution.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 22-cr-145
Department of Justice Files Nationwide Lawsuit Against AmerisourceBergen Corp. and Subsidiaries for Controlled Substances Act ViolationsRead the Press Release
Denver – In a civil complaint filed today, the Department of Justice alleges that AmerisourceBergen Corporation and two of its subsidiaries, AmerisourceBergen Drug Corporation and Integrated Commercialization Solutions, LLC (together “AmerisourceBergen”), collectively one of the country’s largest wholesale pharmaceutical distributors, violated federal law in connection with the distribution of controlled substances to pharmacies and other customers across the country, contributing to the prescription opioid epidemic.
The complaint alleges that this unlawful conduct resulted in at least hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties and injunctive relief.
“The Department of Justice is committed to holding accountable those who fueled the opioid crisis by flouting the law,” said Associate Attorney General Vanita Gupta. “Companies distributing opioids are required to report suspicious orders to federal law enforcement. Our complaint alleges that AmerisourceBergen—which sold billions of units of prescription opioids over the past decade—repeatedly failed to comply with that requirement.”
“AmerisourceBergen, one of the largest wholesale distributors of opioids in the world, had a legal obligation to report suspicious orders to the Drug Enforcement Administration, and our complaint alleges that the company’s repeated and systemic failure to fulfill this simple obligation helped ignite an opioid epidemic that has resulted in hundreds of thousands of deaths over the past decade,” said DEA Administrator Anne Milgram. “The men and women of the DEA will stop at nothing to hold accountable registrants that fail to uphold their responsibility of saving American lives by filing suspicious order reports.”
Pharmaceutical distributors that sell controlled substances, including AmerisourceBergen, have a longstanding legal obligation to monitor the orders that they receive from pharmacies and other customers and must inform the Drug Enforcement Administration (DEA) each and every time they receive a suspicious order.
The complaint filed in the U.S. District Court for the Eastern District of Pennsylvania alleges that over the course of nearly a decade, from 2014 through the present, AmerisourceBergen violated the CSA by failing to report at least hundreds of thousands of suspicious orders of controlled substances to the DEA as required by law. The alleged unlawful conduct includes filling and failing to report numerous orders from pharmacies that AmerisourceBergen knew were likely facilitating diversion of prescription opioids. Today’s filing is the result of a multi-year investigation by the DEA, the Civil Division’s Consumer Protection Branch and several U.S. Attorneys’ Offices.
“As a distributor of prescription drugs, AmerisourceBergen was entrusted with handling addictive, dangerous drugs that can be fatal if misused. When it failed to report suspicious orders of prescription drugs, it failed to honor a key legal obligation that protects the public. his complaint makes clear that the Department of Justice will continue to hold accountable corporations that disregard the public’s safety for their own profit,” said United States Attorney Cole Finegan.
The government’s complaint specifies several pharmacies for which AmerisourceBergen allegedly was aware of significant “red flags” suggesting the existence of diversion of prescription drugs to illicit markets. The complaint asserts that AmerisourceBergen nevertheless continued to distribute drugs to the pharmacies for years and reported few suspicious orders to the DEA. The five examples include: two pharmacies, one in Florida and one in West Virginia, for which AmerisourceBergen knew the drugs it distributed were likely being sold in parking lots for cash; a New Jersey pharmacy that has pleaded guilty to unlawfully selling controlled substances; another New Jersey pharmacy whose pharmacist-in-charge has been indicted for drug diversion; and a Colorado pharmacy that AmerisourceBergen knew was its largest purchaser of oxycodone 30mg tablets in all of Colorado. The government further alleges that for this Colorado pharmacy, AmerisourceBergen specifically identified eleven patients as potential “drug addicts” whose prescriptions likely were illegitimate. Two of those patients subsequently died of overdoses.
The complaint further alleges that AmerisourceBergen not only ignored red flags of diversion, but also relied on internal systems to monitor and identify suspicious orders that were deeply inadequate, both in design and implementation. These systems allegedly flagged only a tiny fraction of suspicious orders, thereby enabling diversion and AmerisourceBergen’s failure to report orders it was legally obligated to identify to the DEA. In fact, the complaint asserts that in the midst of the opioid epidemic, AmerisourceBergen intentionally altered its internal systems in a way that reduced the number of controlled substances reported as suspicious. Even for the small percentage of orders that AmerisourceBergen did identify as suspicious, the company routinely failed to report them to the DEA.
The government’s complaint alleges that for years AmerisourceBergen flouted its legal obligations and prioritized profits over the well-being of Americans.
If AmerisourceBergen is found liable, it could face escalating civil penalties depending on when each violation occurred and the type of controlled substance at issue. Specifically: up to $10,000 for each reporting violation before November 2015, up to $16,864 for each violation between November 2015 and October 2018 and for each violation relating to a suspicious order for a non-opioid controlled substance not reported after October 2018, and up to $109,374 for each violation relating to a suspicious opioid order not reported after October 2018, potentially totaling billions of dollars in penalties. The court also may award injunctive relief to prevent AmerisourceBergen from committing future CSA violations.
The United States is represented in the filed action by Trial Attorneys Michael Wadden, Amy DeLine, and Deborah Sohn of the Department of Justice Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Hayden M. Brockett and Jordann R. Conaboy for the District of New Jersey, Assistant U.S. Attorneys Anthony D. Scicchitano and Landon Jones for the Eastern District of Pennsylvania, Assistant U.S. Attorneys Amanda Rocque and David Moskowitz for the District of Colorado, and Assistant U.S. Attorneys Elliot M. Schachner and Diane Leonardo for the Eastern District of New York. The DEA collaborated with the Civil Division’s Consumer Protection and the U.S. Attorney’s Offices to investigate the case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
Five People Charged with Fentanyl Distribution Connected to Mesa County Jail Inmate’s DeathRead the Press Release
GRAND JUNCTION – The United States Attorney’s Office for the District of Colorado announces a federal grand jury has returned indictments charging Jeremiah Wesley Robinson, age 42; Efrain Velez, age 34; Vanessa Vasquez, age 33; Anna Munday, age 28; and Karlie Locke, age 29, with distribution of fentanyl that resulted in the death of an inmate in the Mesa County jail on May 21, 2022.
According to the two recently unsealed indictments:
- Jeremiah Robinson is charged with conspiracy to distribute and possession with intent to distribute methamphetamine and fentanyl resulting in death and distribution and possession with intent to distribute fentanyl resulting in death.
- Efrain Velez is charged with conspiracy to distribute and possession with intent to distribute methamphetamine and fentanyl resulting in death and distribution of fentanyl resulting in death.
- Vanessa Vasquez is charged with conspiracy to distribute and possession with intent to distribute methamphetamine and fentanyl resulting in death, conspiracy to distribute and possess with intent to distribute fentanyl resulting in death, and distribution of fentanyl resulting in death.
- Anna Munday is charged with conspiracy to distribute and possession with intent to distribute methamphetamine and fentanyl resulting in death, conspiracy to distribute and possess with intent to distribute fentanyl resulting in death, and distribution of fentanyl resulting in death.
- Karlie Locke is charged with conspiracy to distribute and possession with intent to distribute fentanyl resulting in death and distribution of fentanyl resulting in death
All counts carry a mandatory minimum of 20 years and up to life in prison.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
The Drug Enforcement Administration (DEA) Rocky Mountain Division and the Mesa County Sheriff's Office are investigating this case. Assistant United States Attorneys J.D. Rowell and Jeffrey Graves are handling the prosecution.
CASE NUMBERS: 22-cr-00309 and 22-cr-00232
Minnesota Man Indicted for Romance Scam Targeting Colorado WomanRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Adetomiwa Seun Akindele, age 37, of Minnesota, has been indicted on 10 counts of wire fraud and 11 counts of money laundering.
According to the indictment, beginning in January 2018, and continuing until October 2018, Akindele posed as a wealthy Italian-American businessman, “Frank Labato,” on a dating website, where he met a widowed Colorado woman. In February 2018, “Frank” began emailing the victim, and in March 2018, the two began exchanging telephone calls. During these communications, “Frank” provided the victim with additional false details about his personal and work background, images, and photos, to substantiate his fictitious persona. In March 2018, “Frank” represented to the victim that he had encountered a financial crisis related to his purported work abroad for which he claimed to need money, funds, and assistance from the victim. At “Frank’s” direction, the victim opened a cryptocurrency exchange account, where she eventually wired over $1.6 million dollars. From there, Akindele converted the money into various cryptocurrencies, laundered it across multiple crypto exchanges and then converted it back into U.S. dollars and deposited it into his own bank accounts. “Frank” fraudulently represented to the victim that he would repay her for the requested “loans” to his business. Over the course of the scheme, “Frank” executed three fraudulent “promissory notes” to reassure the victim that she would be repaid.
The Federal Bureau of Investigation (FBI) Denver Division conducted the investigation. Assistant United States Attorney Sarah Weiss is handling the prosecution of the case.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
Case number: 22-cr-00326
High-ranking Member of the Sons of Silence Motorcycle Club Sentenced to 10 Years in Prison for Drugs and Weapons ViolationsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Seburn John Henry IV, age 37 of Colorado Springs, was sentenced to 10 years in federal prison for possession of a firearm by a prohibited person and possession with intent to distribute methamphetamine.
According to the plea agreement, on June 22, 2021, the Colorado Springs Police Department was conducting surveillance on a residence in Colorado Springs that was believed to be involved in narcotics distribution. During surveillance, two detectives observed the defendant working in and around a black Cadillac Escalade parked near the residence they were surveilling. Detectives saw the defendant near the back passenger compartment of the vehicle with a handgun in his right hand. It appeared to the detectives that the defendant was manipulating the slide of the handgun with his left hand. One of the detectives observed the defendant appear to load a firearm magazine. The defendant eventually left in the vehicle with a female passenger. Law enforcement knew the defendant was a high-ranking member of the Sons of Silence Motorcycle Club and also knew the defendant was a previously convicted felon who could not lawfully possess firearms. As such, both detectives believed the defendant was unlawfully in possession of a firearm and notified the CSPD Armed Violent Offenders Unit (AVOU) to respond and attempt to contact the defendant. That same day, law enforcement contacted the defendant as he pulled into a 7-Eleven in the same black Cadillac Escalade he was observed in earlier that day. The defendant was instructed to exit the vehicle, and he complied. One detective walked toward the driver’s door, which was left open, and observed two firearms in the driver’s door pocket. One of the handguns was a Taurus 9mm handgun loaded with a magazine containing 9mm ammunition. The other was a Smith & Wesson 9mm handgun loaded with a magazine containing 9mm ammunition. Law enforcement than began searching the vehicle. During that search, detectives located another handgun in the front passenger floorboard area. This handgun was also found to be loaded with a magazine containing .45 caliber ammunition. At the time the defendant possessed the firearms and ammunition, he knew that he had been convicted of a felony and was prohibited from possessing firearms. Detectives also located a total of 228.88 grams of suspected methamphetamine and two digital scales inside a black bag found on the floor of the front passenger seat in the vehicle.
Judge Raymond P. Moore sentenced the defendant on December 16, 2022.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Colorado Springs Police Department handled the investigation. Assistant United States Attorney Kelly Churnet handled the prosecution.
CASE NUMBER: 21-cr-00236
Justice Department Announces New Language Access Law Enforcement InitiativeRead the Press Release
WASHINGTON – The Justice Department announced the launch of the Law Enforcement Language Access Initiative, a nationwide effort to assist law enforcement agencies in meeting their obligations to provide meaningful language assistance to limited English proficient (LEP) individuals. The Initiative will build on the department’s longstanding work to ensure that law enforcement agencies are complying with their language access obligations.
“Providing law enforcement agencies with the tools they need to ensure effective and meaningful language access promotes and advances greater safety for limited English proficient people,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Through this Initiative we will be able to share these language access best practices and similar resources with law enforcement agencies all across the country." Video statement
The Initiative will be led by the Civil Rights Division’s Federal Coordination and Compliance Section in partnership with U.S. Attorneys’ Offices. Specifically, the Initiative will:
• Develop technical assistance resources and tools that can assist local and state law enforcement agencies in their efforts to provide meaningful language access to LEP individuals and populations within their jurisdiction.
• Affirmatively engage law enforcement agencies that want to review, update, and/or strengthen their language access polices, plans, and training.
• Leverage collaboration with U.S. Attorneys’ Offices to conduct trainings in communities across the country to increase awareness of language access obligations and encourage widespread adoption of best practices by law enforcement agencies.
• Strengthen the department’s ties and engagement with LEP community stakeholders and LEP populations.In addition to today’s Initiative announcement, the Justice Department and the U.S. Attorney’s Office for the District of Colorado announced an agreement to resolve an investigation into allegations that the Denver Police Department (DPD) discriminated on the basis of national origin against LEP individuals in violation of Title VI of the Civil Rights Act of 1964. Title VI prohibits race, color, and national origin discrimination by recipients of federal financial assistance.
“This agreement with the Denver Police Department will help police officers do their jobs,” said Matthew Kirsch, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. §515 for the District of Colorado. “Whether it’s conducting community outreach or arresting individuals accused of breaking the law, ensuring ready access to accurate language services enables officers to serve and protect all members of the community, regardless of English proficiency.”
The Justice Department’s investigation of the DPD began after community members raised concerns about incidents involving Burmese and Rohingya-speaking LEP residents living in the East Colfax area of Denver. The investigation revealed numerous instances where DPD officers either failed to provide language assistance to LEP individuals or provided language assistance that was ineffective or inappropriate. For example, the investigation uncovered situations where children, family members, and bystanders were relied upon for language assistance, including in circumstances where more reliable and objective language assistance should have been provided.
As part of this settlement agreement, the DPD has agreed to implement a series of changes to its language access policies, procedures, and training, including:
• Updating its Language Access Policy and Plan in order to establish procedures for communicating with LEP individuals, including witnesses and suspects, and to prohibit the use of children, family members, or bystanders to communicate with LEP individuals, except in exigent circumstances;
• Appointing its first-ever LEP Coordinator and establish Language Access Points of Contact (LAPCs) in every DPD district;
• Training all DPD employees and new recruits on identifying, communicating with, and documenting interactions with LEP individuals; and
• Creating a Language Access Committee that includes stakeholders representing LEP community interests.Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt and information about limited English proficiency and Title VI is available at www.lep.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/
Amharic: አማርኛ
Arabic: العربية
Burmese: မြန်မာဘာသာ
Chinese, Simplified: 简体字
Chinese, Traditional: 簡體字
Farsi: فارسی
French: Français
Karen: ကညီ
Nepali: नेपाली
Rohingya: Ruáingga
Russian: Pусский
Somali: Soomaaliga
Spanish: Español
Vietnamese: Tiếng Việt
Download Memorandum of Agreement
Download DPD Language Access Policy
Colorado Man Shares Warnings about Ghost GunsRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado, the ATF and the Denver Police Department, are joining forces to raise awareness about gun violence that is taking innocent lives. Illegally owned, privately made firearms or “ghost guns” are part of the problem. “Ghost guns” are guns that do not have serial numbers, making them harder to trace if used in a crime. These guns are often purchased without a background check, even though such purchases are illegal. “Untraceable firearms are being used to commit crimes. People who wouldn’t otherwise be able to get a gun because of their age or background, are getting ahold of these weapons,” said ATF Special Agent in Charge David S. Booth. The Department of Justice reports 45-thousand privately made firearms are known, including 692 guns linked to murder or attempted homicide investigations. One defendant is warning others about the dangers of getting caught up in this criminal activity.
Saul Ramirez Escobedo used to build ghost guns. Escobedo said a close relative recruited him to buy parts, make the weapons, and sell them. Escobedo said, “When COVID hit, my job slowed down a lot. I was struggling to pay my bills. He taught me how to build firearms. You construct your own firearm, you go out, shoot it, it works. I’ve never been in trouble with the law before. Never done this kind of stuff before. The way he explained it to me, you won’t get in trouble. It was more cause like it was cheaper selling it from outside than going to the store and going through the whole process.” But Escobedo did get in trouble. He was arrested and pleaded guilty in federal court to conspiracy to deal firearms without a license. Escobedo received leniency for his willingness to accept responsibility and Judge Christine M. Arguello sentenced Escobedo to four years of probation, and he is now a convicted felon. “Right now, you look at the media, there’s a lot of killings going on, you see a lot of people shooting each other, mass killings and stuff. I started looking into that and thought, ‘man that could be one of the guns I put out on the streets’, and it’s really scary,” Escobedo said.
Co-defendant, Luis Daniel Marquez, pleaded guilty to conspiracy to deal firearms without a license and possession with intent to distribute methamphetamine. Judge Arguello sentenced Marquez to 90 months in federal prison.
“We will use all available tools to tackle gun violence. We remain committed to saving innocent lives by enforcing federal firearms laws,” said United States Attorney Cole Finegan.
Denver Police Chief Ron Thomas said, “In Denver, it is illegal to possess or manufacture non serialized firearms. And the Denver Police Department is committed to recovering illegal guns, to include ghost guns, to keep people safe and prevent gun violence in our community.“
Dealing firearms without a license is illegal. Call the ATF at 888-ATF-TIPS to report illegal firearms activity.
Ghost Gun Public Service Announcement
Ghost Gun PSA "In His Own Words"
This public service announcement is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
On April 11, 2022, the Attorney General signed ATF final rule, Definition of “Frame or Receiver” and Identification of Firearms, which modernizes the definition of a firearm. This rule went into effect late this summer and clarifies that parts kits that are readily convertible to firearms are subject to the same regulations as traditional firearms. These regulatory updates will help curb the proliferation of “ghost guns,” which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals. More information can be found here: ATF Definition of “Frame or Receiver” and Identification of Firearms
CASE NUMBER: 21-cr-0014
Social Security Administration Employee Accused of Fraud and Money LaunderingRead the Press Release
DENVER - The U.S. Attorney’s Office for the District of Colorado announces Justin Skiff, age 36, of Castle Pines, appeared in U.S District Court today to face one count each of wire fraud, social security fraud, and money laundering.
According to the information filed in this case, beginning in August 2019 and continuing through September 2021, it is alleged Skiff used his position as a claims specialist with the Social Security Administration (SSA), to fraudulently obtain money from the SSA. Skiff is alleged to have filed fictious claims for benefits using false identities and the identity of an actual individual to collect proceeds from these claims. According to court documents, Skiff’s actions ultimately led to the theft of approximately $310,601.44 from the SSA.
Skiff made his initial appearance before Magistrate Judge Kristen L. Mix on December 15, 2022. Wire fraud carries a penalty of up to 20 years in prison and a fine of $250,000. Social Security fraud carries a penalty of up to 5 years in prison and a fine of $250,000. Money laundering carries a penalty of up to 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction. If convicted, Skiff must also forfeit any property derived from proceeds traceable to the scheme.
This case was investigated by the Social Security Administration, Office of the Inspector General and the Internal Revenue Service, Criminal Investigation. This case is being prosecuted by Special Assistant U.S. Attorney Sonia J. Dave.
The charges contained in the information are allegations, and the defendant is presumed innocent until proven guilty.
Federal Grand Jury Indicts 7 Southern Colorado Residents on Drug and Weapon ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces the indictments of Leonard Singleton, age 44; Jaime Sanchez, age 39; Gabriel Sanchez, age 36; Jose Baeza, age 39; Stephanie Barker, age 38; Leanne Wilson, age 25; and Augustine Gallegos, age 36, after a 10-month federal investigation into drug trafficking in Colorado Springs.
According to the indictment, all of the defendants conspired to distribute more than 50 grams of methamphetamine. In addition, Gabriel Sanchez, Jaime Sanchez, and Augustine Gallegos are accused of possession with intent to distribute more than 50 grams of methamphetamine. Jose Baeza is accused of using, carrying, brandishing and discharging a firearm during and in furtherance of a drug trafficking crime. Singleton is also accused of being a felon in possession of a firearm and ammunition and knowingly receiving and possessing an unregistered firearm. Stephanie Barker and Leanne Wilson are accused of having knowledge of the commission of a felony and concealing it.
Jaime Sanchez, Jose Baeza, Leanne Wilson and Augustine Gallegos made their initial appearances before Magistrate Judge Michael E. Hegarty on Nov. 17, 2022. Leonard Singleton made his initial appearance before Magistrate Judge Michael E. Hegarty on Nov. 18, 2022. Gabriel Sanchez has not yet been arrested and is considered a fugitive.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the Federal Bureau of Investigation (FBI) Denver Division, the Drug Enforcement Administration (DEA) Rocky Mountain Division, the Colorado Bureau of Investigation (CBI), and the Colorado Springs Police Department (CSPD). The prosecution is being handled by Assistant United States Attorney Alyssa Mance.
“This is an example of how the FBI works with state, federal and local partners to break up criminal organizations and make communities safer,” said FBI Denver Acting Special Agent in Charge Matthew Fodor. “We are proud of this successful collaboration and will continue to work with these and other partners where a need for FBI resources and expertise is identified.”
“The success of this joint investigation is truly based on the strong relationships we have with our federal, state and local law enforcement counterparts throughout Colorado,” said DEA Rocky Mountain Division Special Agent in Charge Brian Besser. “The DEA Rocky Mountain Division is committed to making this region a safer place to live and work and it is because of this strong collaboration with FBI, CBI and CSPD that we are able to say we’ve done that today.”
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
CASE NUMBER: 22-CR-00345-RM
Colorado Company and Danish Parent Company Pay $728,910 to Resolve Allegations of Failure to Pay Customs DutiesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced today that Ellab, Inc., a Colorado corporation, and Ellab A/S, its Danish parent company, have paid the United States $728,910 to resolve civil allegations that Ellab, Inc. failed to properly classify its imported products and declare their value, thereby failing to pay the full amount of customs duties owed to the United States on the imported goods.
Under the Tariff Act of 1930, companies that import products into the United States are required to pay customs duties—typically calculated as a percentage of the value of the goods—on those products. Importers must classify their imported products according to the Harmonized Tariff Schedule of the United States (HTSUS), and they owe different rates of duty depending on which HTSUS category the product properly falls into. Importers are also required to properly declare the value of any goods they import, including products that have been exported, repaired abroad, and re-imported into the United States.
The United States alleges that Ellab, Inc.—a company that imports thermal validation equipment for use in the healthcare, pharmaceutical, and food industries from its Danish parent for resale to domestic customers—failed to properly classify its imported products. Rather than separately determining which HTSUS category each of its imported products fell into, Ellab, Inc. instead classified all of its imported products under a single HTSUS code, one which carried a low rate of duty. In addition, the United States alleges that Ellab, Inc. failed to declare the cost of repairs for products that it exported and then re-imported into the United States.
The United States claims that this conduct violated the Tariff Act. The United States also alleges that this conduct violated the federal False Claims Act, because Ellab, Inc. made false statements to the United States regarding its customs duties owed, resulting in Ellab, Inc. paying far less than it properly owed to United States Customs and Border Protection.
The settlement in this case covers a period of nine years, from April 3, 2010, through May 21, 2021. The lawsuit resolved by this settlement was originally filed by William Day, a former employee of Ellab, Inc. who had knowledge of its record keeping and import practices. Mr. Day filed a civil action, under seal, in the United States District Court for the District of Colorado, captioned United States ex rel. William Day v. Ellab, Inc. & Ellab A/S, No. 18-cv-00768-NRN (D. Colo.). Under the False Claims Act, private citizens who know about a fraud against the United States may present those allegations to the government by bringing a lawsuit under seal on behalf of the United States. If the government’s investigation substantiates those allegations and the United States obtains a monetary recovery under the False Claims Act, the private citizen may share in that monetary recovery.
“American companies that import products have a duty to truthfully report the nature and value of their imports and pay the appropriate customs duties,” said United States Attorney Cole Finegan. “If a company cuts corners and pays less than it owes, that threatens the entire system of self-disclosure, while depriving the United States government of duties lawfully owed. Importers need to understand that if they try to game the system, they can face serious penalties.”
“The Machinery Center of Excellence and Expertise, Enforcement Division, working in close collaboration with Office of Chief Counsel (Chicago) and the U.S. Attorney’s Office for the District of Colorado during the investigation was able to uncover a significant underpayment of owed Customs duties due to improper classification of repair value of products imported into the U.S. by importer Ellab, Inc.” said Juan J. Porras, Director, Machinery Center of Excellence and Expertise. “As this case illustrates, CBP will continue to exercise vigilance in the enforcement of customs and trade laws in the machinery sector to ensure that U.S. trade law is not abrogated and the revenue of the U.S. is protected. CBP’s ongoing commitment to upholding U.S. trade law helps foster U.S. economic security and in so doing strengthens U.S. national security.”
The claims settled by this civil agreement are allegations. In entering into this civil settlement, Ellab, Inc. and Ellab A/S did not admit to any liability.
The United States was represented in this matter by Assistant United States Attorneys Kyle Brenton and Amanda Rocque.
Colorado Springs Woman Pleads Guilty in Teenager’s Fentanyl DeathRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Alexis Nicole Wilkins, age 27, of Colorado Springs pleaded guilty today to distribution of fentanyl, resulting in death.
According to the plea agreement, on December 3, 2021, a juvenile overdosed during class at Mitchell High School in Colorado Springs. First responders attempted life-saving measures, and transported the juvenile to a local hospital, where she was pronounced dead. The El Paso County Coroner determined the cause of death was “fentanyl intoxication.” Investigators spoke with two juvenile witnesses who were with the victim in a school restroom that morning. One juvenile witness provided statements that she and the victim used ”Percocet” in the bathroom that morning. Investigators were able to track where the juveniles got the pill through Facebook messages with the defendant, including a conversation which appears to be the one arranging the sale of a pill at the Citadel Mall in Colorado Springs the night before the victim’s death. One of the juvenile witnesses said she was introduced to the defendant by a Denver gang member in February 2021, and had been purchasing “percs” from the defendant. One witness noted the pill they purchased on December 2, 2021, looked different and was a lighter blue color than what they had received previously. Other Facebook messages indicate the defendant knew the pills she was selling were not made by a pharmaceutical company. On March 15, 2022, the Federal Bureau of Investigation (FBI) and the Colorado Springs Police Department executed a federal search warrant on the defendant’s home on West Portal Drive in Colorado Springs. Officers located and seized over 100 blue pills marked with “M” and “30,” which contained fentanyl. Investigators believe some of the pills were packaged for distribution.
Judge Christine M. Arguello presided over the change of plea hearing on November 30, 2022. Wilkins will be sentenced on March 14, 2023. Distribution of fentanyl, a Schedule II controlled substance, resulting in death carries a potential penalty of no less than 20 years and up to life in prison, a fine of no more than $1,000,000, and no less than three years of supervised release.
The Federal Bureau of Investigation (FBI) Denver Division, the Colorado Springs Police Department Metro, Vice, Narcotics, and Intelligence (MVNI) Unit, the El Paso County Sheriff’s Office, and the 4th Judicial District Attorney’s Office participated in the investigation. The prosecution is being handled by Assistant United States Attorneys Peter McNeilly and Alyssa Mance.
CASE NUMBER: 22-cr-101-CMA.
Denver Felon Sentenced to Prison for 46 Months for Illegal Possession of a WeaponRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces James Ernesto Martinez, age 33, of Denver, has been sentenced to 46 months in prison for possession of a firearm by a prohibited person.
According to the plea agreement, on July 22, 2021, law enforcement agents executed a search warrant at the defendant’s Denver home. That search warrant authorized the seizure of, among other things, firearms. After agents knocked and announced their presence, Martinez went back inside for approximately ten minutes. During that time, agents could see Martinez moving quickly through the home. When Martinez finally surrendered, he was the only adult in the home. On the floor of Martinez’s bedroom, agents observed a trail of pills that led from the dresser to the bathroom. In the bathroom, around the toilet, agents located crushed pills they believed to be a controlled substance, as well as ripped up plastic baggies. Based on what agents initially saw, they obtained a second search warrant for drugs and drug paraphernalia. They located 11 fentanyl pills, .981 grams of methamphetamine, plastic baggies, and two digital scales. In a shoe box concealed in the attic that could only be accessed from the defendant’s bedroom, agents located two 9mm handguns and a .22 caliber handgun. Martinez had previously been convicted of a felony and knew he was prohibited from possessing firearms and ammunition.
Judge William J. Martinez sentenced the defendant on November 23, 2022.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office for the District of Colorado.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 21-cr-00263
Denver Man Sentenced to 9.5 Years in Prison for Possession of a Stolen FirearmRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Frederick McCoy, age 39, of Denver, has been sentenced to 9.5 years in federal prison for possession of a stolen firearm.
According to an earlier plea agreement, on February 22, 2022, Denver police officers arrested the defendant on an outstanding warrant. Officers discovered the defendant had a fanny-pack strapped to his chest containing a Sig Sauer .40 caliber handgun, loaded with ammunition. The handgun had further been reported stolen out of Denver on October 3, 2021. The defendant knew or had reason to know that the gun and the ammunition in it were stolen.
Judge Raymond P. Moore sentenced the defendant on November 21, 2022. Judge Moore also sentenced the defendant to three years of supervised release.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Denver Police Department. The prosecution was handled by Assistant United States Attorney Albert Buchman.
CASE NUMBER: 22-cr-118
Denver Man Pleads Guilty to 10 Armed Bank RobberiesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Jerome Bravo, age 39, of Denver, has pleaded guilty to ten counts of bank robbery and three counts of brandishing a firearm during a crime of violence.
According to the plea agreement, the defendant robbed ten banks in Denver, Aurora, and Arvada between January 6, 2021, and March 31, 2021. In the January 6th robbery, the defendant was armed with a black handgun, pointed it at a teller, and stated, "Don't move, I'm going to shoot you." After taking money from the drawer, he jumped back over the counter and left the bank. On February 4, 2021, and February 8, 2021, the defendant and a codefendant ran into two banks yelling and screaming, waiving and pointing their handguns at people in the banks. The defendant demanded the teller open her drawer as he vaulted over the counter. Out of fear, the teller complied and removed money from her drawer and gave it to the defendant and his codefendant. In a second bank robbery on February 8, 2021, the defendant and codefendant ran into the bank brandishing handguns, vaulted the counter, and demanded money from the teller. The teller was in fear for her life and safety and gave the robbers the money in her drawers and from the machine. After obtaining the money, the defendant and codefendant vaulted the counters and ran out of the bank. On February 18, 2021, the defendant and codefendant entered the branch brandishing handguns, yelling “get down,” and warning that they weren’t “playing.” The defendant and codefendant also threatened to shoot the occupants of the bank. The defendant vaulted over the counter and emptied out several teller drawers, actually physically taking the drawer units.
Judge Daniel D. Domenico presided over the change of plea hearing on November 22, 2022. The defendant will be sentenced February 21, 2023 at 2:30 p.m. Codefendant Jonathan Gullete is in custody and facing trial on February 27, 2023.
This was investigated by the FBI Rocky Mountain Safe Streets Task Force, Colorado Bureau of Investigation, Denver Police Department, Aurora Police Department and Arvada Police Department. The prosecution is being handled by Assistant United States Attorney Brian Dunn.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 21-cr-226
Statement on Shooting at Club Q in Colorado SpringsRead the Press Release
Colorado Springs - The Denver FBI Field Office, the ATF Denver Field Division, the Justice Department’s Civil Rights Division, National Security Division, and the U.S. Attorney’s Office for the District of Colorado are aware of the situation regarding the shooting in Colorado Springs at Club Q, and we will review all available facts of the incident to determine what federal response is warranted. The FBI is providing assistance to the Colorado Springs Police Department.
“On behalf of the U.S. Attorney’s Office and the Department of Justice, we offer our deepest condolences to the victims and their families, and our sorrow for the tragedy that has unfolded here. We will work closely with District Attorney Michael Allen, with local law enforcement, Mayor Suthers, and the Colorado Springs community to ensure the person who did this is brought to justice,” said U.S. Attorney Cole Finegan.
Two Felons Guilty of Possessing FirearmsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that on November 16, 2022 a federal jury found Robert Vandori Johnson, age 40 , of Aurora, guilty of being a felon in possession of a firearm. Co-defendant Daevon House, age 30, of Denver, previously pled guilty to being a felon in possession of a firearm or ammunition.
According to facts presented at trial, on February 1, 2022, Denver police officers were searching for House due to an outstanding arrest warrant. After locating him, they observed House and Johnson drive to an apartment complex in Denver, Colorado. Both went into an apartment and came back out a short time later. As House and Johnson got back into the car, officers stopped the car and attempted to arrest House. When officers approached, House ran on foot. He was carrying a firearm which he dropped as he fled before being taken into custody. House had previously been convicted of a felony, making it illegal for him to possess a firearm or ammunition. Johnson was contacted and escorted from the driver seat of his car vehicle. As he exited the vehicle, a semiautomatic pistol dropped from his waistband. Johnson had previously been convicted of a felony offense making it unlawful for him to possess a firearm or ammunition.
Judge Philip A. Brimmer presided over Johnson's two day trial. The jury returned its guilty verdict on November 16, 2022. Johnson will be sentenced at a later date. He faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release.
Judge Raymond P. Moore sentenced House to 91 months in prison on August 9, 2022.
The investigation was handled by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Denver Police Department. The prosecution was handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 22-cr-00046-RM
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Boulder Man Pleads Guilty to Covid FraudRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Russell Bryant Lester, age 41, of Boulder, has pleaded guilty to one count of wire fraud for taking money from pandemic relief funds by filing false applications.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program.
According to the plea agreement, from March 2020, through August 2020, Lester made false statements to obtain EIDLs and PPP loans. During the same period, Lester also made false statements to the Colorado Department of Labor and Employment about not being employed in any capacity in order to collect pandemic unemployment benefits from the state.
The SBA funded four EIDLs for a total of $217,400, awarded three grants through the EIDL program totaling $16,000, and funded two PPP applications in an amount totaling $317,975. A third PPP loan application—requesting a loan of $297,200—was not funded.
In April 2020, Lester applied for pandemic unemployment benefits from the Colorado Department of Labor and Employment. In his application for unemployment benefits, he stated that he was not currently working or receiving pay as a result of the COVID-19 pandemic, and that he had not received pay since January 15, 2020. Subsequently, between April and October 2020, Lester completed weekly certifications wherein he falsely stated he did not work or receive any money or payments from an employer. As a result of these false certifications, he collected $17,578 in pandemic unemployment benefits from the state of Colorado. Lester knew these certifications to be false: in reality, he received $551,175 in COVID-relief funds in this period, some of which he used to pay himself. Lester spent portions of EIDL and PPP loan proceeds for non-eligible expenses, including paying old debts unrelated to the businesses receiving the loans and extending high-interest loans to other individuals.
Judge Daniel D. Domenico presided over the change of plea hearing on November 15, 2022. The defendant will be sentenced on February 7, 2023.
This case was investigated by the Federal Bureau of Investigations (FBI) Denver Division. The prosecution is being handled by Assistant United States Attorneys Craig Fansler, Sarah Weiss and Rebecca Weber.
CASE NUMBER: 21-cr-00230
Federal Jury Finds Grand Junction Truck Driver Guilty of Sexually Abusing Two ChildrenRead the Press Release
Grand Junction – The United States Attorney’s Office for the District of Colorado announces a federal jury today found Michael Tracy McFadden, age 51, of Grand Junction, guilty of crossing state lines with intent to engage in a sexual act with a minor under the age of 12, and transportation of a minor with intent to engage in sexual activity.
According to facts presented at trial, McFadden was a long-haul truck driver who took at least two children on multiple trips out of state. Over a span of at least six years, McFadden repeatedly sexually assaulted the children, both in his home in Grand Junction and in his semitruck in other states. Two of his victims bravely testified at trial, relating to the jury the countless times McFadden abused them.
Judge Christine M. Arguello presided over the five-day trial. The jury returned its guilty verdict on November 14, 2022. Sentencing is set for March 7, 2023. McFadden faces a mandatory minimum sentence of 30 years in prison and may be sentenced up to life in prison.
McFadden was previously charged and convicted in state court with sexual assault of six separate children. However, his convictions were overturned on appeal due to a speedy trial violation, preventing any further state court prosecution. Upon learning this, the Federal Bureau of Investigation (FBI) Denver Division immediately launched an investigation into potential federal violations. McFadden was indicted by a federal grand jury in 2019, and rearrested on federal charges.
“The U.S. Attorney’s Office is honored to be a small part of bringing justice for the victims in this case. These victims, despite setbacks and delays, courageously faced their abuser and described convincingly the abuses they suffered more than ten years ago. Their bravery and resilience are inspiring. No matter how long it takes, or how difficult the process, our office will continue to seek justice for all victims,” said U.S. Attorney Cole Finegan.
The investigation in this case was conducted by the FBI Denver Division with substantial assistance from the Grand Junction Police Department and the 21st Judicial District Attorney’s Office. The prosecution was handled by Assistant United States Attorneys Jeremy Chaffin and Andrea Surratt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
CASE NUMBER: 19-CR-243
U.S. Attorney's Office Joins Effort to Crackdown on Violent Crime in DenverRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado joined the Downtown Denver Partnership, Denver Mayor Michael Hancock and the City and County of Denver, the Denver Police Department, the Colorado Attorney General, and RTD to announce an infusion of resources to address both immediate health and safety concerns in the center city while targeting root problems and long-term solutions.
Comments from U.S. Attorney Cole Finegan as made at Public Safety News Conference in Denver on November 10, 2022:
Good afternoon. The United States Attorney’s Office here in Colorado is proud to be part of this effort to address the rise in violent crime, here in downtown Denver and across the state. When I came into this role nearly a year ago, we tried to figure out, is there a way that our office can help? What we have come up with is a creative and innovative solution to work together and help each other make Denver a safer place to live, work and visit.
The U.S. Attorney’s Office prosecutes the most serious offenders, who are most involved with violent crime in our community. We are focusing on violent criminals who carry or use firearms. Just yesterday, two separate federal juries returned guilty verdicts for felons who were caught with guns.
State differs from federal law and allows certain felons to still carry weapons. Federal law makes it illegal for a felon to possess a firearm or ammunition. Violators can face up to ten years in prison and a $250,000 fine.
Federal law also creates mandatory minimum sentences of between five and ten years in prison for possessing, brandishing, or discharging a firearm during the commission of violent crimes or drug crimes.
We have powerful tools in federal law, and we are not afraid to use them.
Take for example the gunman who forced his way into Children’s Hospital in September. Initially, he was charged at the state level, but was released on bond. We were able to charge him under federal law, and he is being held in jail pending his trial. He is charged with being a felon in possession of a gun, and possession of a machine gun.
Another example from just down the street: Two felons were involved in a shootout in September of 2018, at the corner of 15th and Market. An innocent bystander was hit and seriously wounded by the gunfire. Both defendants were charged with being felons in possession of firearms and ammunition. Armando Durete was convicted after trial and Nickie Rico pled guilty to the charge. Rico was sentenced to more than 8 years in prison. Durete was sentenced to 10 years in prison.
So, we have a federal law that will allow us to charge, detain, and prosecute felons and other dangerous criminals who are caught with a gun. But we have a challenge in making full use of federal law. We have a dedicated team of prosecutors working on violent crime, and we want to do more. Now, thanks to the Mayor, City Attorney, and funding from the Denver City Council, we are in the process of hiring four special prosecutors, who will be designated as "Special Assistant United States Attorneys”. These additional prosecutors will help us make sure we have the resources to charge as many of these dangerous criminals, as possible.
This should send a powerful message to criminals: We are bringing federal criminal charges against felons with guns and criminals using guns in crimes of violence or drug trafficking. Additional special prosecutors for the U.S. Attorney’s Office, funded by the City and County of Denver, will help us make sure we take these violent criminals off the streets and send them to prison for a long time.
We appreciate you helping us spread the message.
Federal Jury Convicts Felon for Weapons ViolationRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces a federal jury convicted Rayzjaun Curry, age 25, of Denver, of possession of a firearm or ammunition by a prohibited person.
According to evidence presented at trial, on April 22, 2022, Denver Police Officers with District 2 Impact Team were on proactive patrol in the Park Hill area. They observed a vehicle with an expired license plate and initiated a stop. As they approached the vehicle, the defendant, who was in the driver’s seat, was reaching for something in the front passenger seat. While searching the vehicle, officers found a backpack on the front passenger seat with a Ruger 9mm handgun with 15 rounds in the magazine and 1 round in the chamber. The only other person in the car was the defendant’s 6-year-old daughter, in the back seat. It was also proven at trial the defendant was a felon, and therefore prohibited from possessing a firearm or ammunition.
U.S. District Court Judge Raymond P. Moore presided over the three-day trial. The jury returned its guilty verdict on November 9, 2022. The defendant is scheduled to be sentenced on February 13, 2023.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Denver Police Department. The prosecution was handled by Assistant United States Attorneys Brian Dunn and Celeste Rangel.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 22-cr-147
Federal Jury Convicts Englewood Felon for Weapons ViolationRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces a federal jury convicted Joseph Gaye, 37, of Englewood, of possession of a firearm or ammunition by a prohibited person.
According to evidence presented at trial, on October 19, 2020, Denver Police Officers responded to a call of a shooting in the 100 block of North Cook Street in Denver. The caller, later identified as Joseph Gaye, told officers he had been shot by an individual in a mask. Officers responded to the building and encountered Gaye, who was suffering from a gunshot wound to the groin area. Officers conducted a search and did not locate anyone else inside the building and did not observe any other signs of forced entry. Detectives then found a Sig Saur semi-automatic 9mm pistol with no serial number inside the desk that Gaye was found next to. The Sig Saur was found underneath a piece of paper with Gaye’s name on it. The Sig Saur had eleven rounds in the magazine and one round in the chamber. Detectives also found several boxes of ammunition next the firearm. The defendant's injuries were determined to be self-inflicted. The defendant had previously been convicted of a felony, making it illegal for him to possess a firearm or ammunition.
U.S. District Court Judge William J. Martinez presided over the three-day trial. The jury returned its guilty verdict on November 9, 2022. The defendant is scheduled to be sentenced on July 19, 2023.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Denver Police Department. The prosecution was handled by Assistant United States Attorneys Tom Minser and Albert Buchman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 21-cr-15
U.S. Attorney's Office Reaches Settlement with Palisade Winery over Access for Service DogRead the Press Release
DENVER—The U.S. Attorney’s Office for the District of Colorado announced today that the United States has resolved a discrimination complaint under the Americans with Disabilities Act (ADA) with Hermosa Vineyards, a vineyard in Palisade, Colorado, to allow service dogs in its tasting room.
The U.S. Attorney’s Office received a complaint that Hermosa Vineyards refused to permit a complainant’s service dog into its tasting room. The complainant claimed that a Hermosa Vineyards representative confronted the complainant and her boyfriend in the winery’s parking lot and refused to let them into the tasting room, even after they explained that the complainant’s dog was a service animal.
Under Title III of the ADA, businesses are required to permit service animals onto their premises. Only dogs may be service animals under the ADA. If it is not obvious whether a dog is a service animal, the business is permitted to ask two questions of the dog’s handler:
- Is the dog a service animal required because of a disability?
- What work or task has the dog been trained to perform?
The business is not allowed, however, to request any documentation about the dog, require that the dog demonstrate its task, or inquire about the nature of the person’s disability. Service dogs are not required to wear vests or special clothing, and handlers are not required to have any particular documentation or certification for the dog. A service dog must be under the control of its handler while on the premises of a business.
To resolve the complaint, Hermosa Vineyards agreed to post notices that service dogs are permitted in its tasting rooms and onto areas of the winery’s grounds that are open to the general public. Hermosa Vineyards also paid the complainant $5,000.
“Businesses must permit individuals with disabilities to bring service dogs into any area where other members of the public are allowed,” said U.S. Attorney Cole Finegan. “The U.S. Attorney’s Office is committed to protecting equal access for people with disabilities who need the aid of service dogs.”
This case was handled by Assistant U.S. Attorney Zeyen Wu.
A photograph of the service dog, provided by the complainant, is shown below.
Picture provided by complainant Service dog