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10 April 2024
Repeat Offender Sentenced to 150 Months in Federal Prison for Drug OffensesRead the Press Release
CONCORD – A Manchester man was sentenced today in federal court for possessing with the intent to distribute cocaine while on parole, First Assistant U.S. Attorney Jay McCormack announces.
Michael Francis, 36, was sentenced by U.S. District Court Judge Paul Barbadoro to 150 months in prison and 4 years of supervised release. Pursuant to the plea agreement, Francis also agreed to not contest the forfeiture of approximately $49,000 seized from him in connection with this investigation. On November 14, 2023, Francis pleaded guilty to one count of possession with intent to distribute over 500 grams of cocaine.
“Mr. Francis dealt large quantities of narcotics, while he was on parole for another drug-related crime,” First Assistant U.S. Attorney Jay McCormack said. “The lengthy sentenced imposed today ensures the public will be protected from this repeat offender for more than 12 years.”
“Michael Francis is a repeat offender, committed to selling narcotics and making money with no regard for the harm he caused in his community,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Putting Mr. Francis out of business and behind bars for the next 12 years is a win for the people of New Hampshire. The FBI’s Major Offender Task Force and our partners will never cede our cities to drug pushers.”
On September 1, 2021, law enforcement officers conducted a search of the defendant’s car after he parked at a TD Bank in Manchester. Law enforcement officers discovered a gift bag in the car containing a brick of more than one kilogram of cocaine, along with an empty gun holster and $10,000 in cash. At the time of his arrest, the defendant was on parole for another drug-related crime and had roughly $4,000 in cash on him.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorneys Aaron Gingrande, Charlie Rombeau, and Jarad Hodes prosecuted the case.
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Repeat Offender Pleads Guilty to Possession of Child Sexual Abuse MaterialRead the Press Release
CONCORD – A Nashua man pleaded guilty today in federal court to possessing child sexual abuse material (CSAM), U.S. Attorney Jane E. Young announces.
Shane Niven, age 33, pleaded guilty to a single count of possession of child pornography. U.S. District Court Samantha Elliott scheduled sentencing for July 16, 2024.
Federal authorities found CSAM on electronic devices belonging to Niven at his home. Niven is a registered sex offender with a prior conviction for possession of child sexual abuse material. Authorities identified Niven through tips made to the National Center for Missing and Exploited Children (NCMEC), which reflected that on at least two occasions, Niven’s residential IP address had been used to share hundreds of files of suspected CSAM with users of a particular online platform. Several of the files identified in the tips to NCMEC were found on devices seized from Niven’s home.
The charging statute provides a sentence of no greater than 20 years in prison, at least 5 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Homeland Security Investigations and the Nashua Police Department led the investigation. The New Hampshire Internet Crimes Against Children Task Force provided valuable assistance. Assistant U.S. Attorney Kasey Weiland is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Principal Drug and Weapons Supplier for MS-13 in Honduras Arrested and Extradited for Racketeering, Narcotics, and Firearms OffensesRead the Press Release
An indictment was unsealed today charging David Campbell, also known as Viejo Dan and Don David, 57, of Honduras, one of the principal narcotics and weapons suppliers to MS-13 in Honduras, with racketeering, narcotics, and firearms offenses.
Campbell was presented today before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court after being extradited yesterday from Honduras.
In addition to Campbell, the superseding indictment unsealed today also charges Yulan Andony Archaga Carías, also known as Alexander Mendoza and Porky, 42, of Honduras, the top leader of MS-13 in Honduras, and three additional MS-13 leaders, Juan Carlos Portillo Santos, also known as Juancy, 35; Victor Eduardo Morales Zelaya, also known as Cuervo, 49; and Jorge Alberto Velasquez Paz, also known as Chacarron, 41, for racketeering, narcotics trafficking, and firearms offenses.
Campbell and Archaga Carías were previously charged in 2021 in a superseding indictment in Manhattan federal court with racketeering, narcotics trafficking, and firearms offenses. Archaga Carías was subsequently placed on the FBI’s Ten Most Wanted Fugitives List, the DEA’s Most Wanted Fugitives List, HSI’s Most Wanted Fugitives List, and a $5 million reward was offered by the U.S. Department of State for information related to his arrest or capture. Portillo Santos and Velasquez Paz are in custody in Honduras. Morales Zelaya remains at large.
“Over the course of decades, MS-13 has sowed unspeakable violence in communities here in the United States and abroad,” said Attorney General Merrick B. Garland. “With the arrest and extradition of the alleged principal MS-13 drug and weapons supplier, the Justice Department is making clear that those responsible for flooding our communities with violence and deadly drugs will be held accountable in an American courtroom.”
“The FBI and our partners remain committed to the combating the violent criminal activity related to MS-13 occurring in communities across America,” said FBI Director Christopher Wray. “Criminals that engage in illegal activity targeting the American people should take today's announcement as a warning — they cannot hide beyond our borders. We are proud of the close collaboration with our partners which resulted in David Campbell having to face the consequences of his actions.”
“Today’s extradition of David Campbell and the announcement of charges against four other MS-13 leaders for their alleged involvement in trafficking multi-ton loads of cocaine and for allegedly perpetrating unspeakable acts of violence in our communities is a testament to the unwavering commitment of the men and women of DEA to save lives and hold drug traffickers accountable,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “DEA will continue to seek justice for all Americans suffering the devastating effects of drug poisonings and drug-related violence in our communities.”
“MS-13 is one of the most dangerous criminal organizations in the world,” said U.S. Attorney Damian Williams for the Southern District of New York. “My office, the Justice Department, and our law enforcement partners will stop at nothing to pursue and hold accountable MS-13’s leaders, members, and associates, who, as alleged in the superseding indictment unsealed today, are responsible for large-scale drug trafficking and violence throughout the United States and Central America. As alleged, David Campbell was, until his capture, one of MS-13’s major suppliers of drugs and guns, and he planned and coordinated violent acts with the top leader of MS-13 in Honduras, Archaga Carías. Campbell has now been extradited and will face justice in the United States, and a $5 million reward is offered for information leading to the arrest of Archaga Carías.”
According to the superseding indictment, MS-13 is a transnational criminal organization that engages in acts of violence, including murders, kidnapping, assaults, extortion, and large-scale drug importation and distribution throughout Central America and the United States. Archaga Carías is the highest-ranking member of MS-13 in Honduras. As the leader and highest-ranking member of MS-13 in Honduras, Archaga Carías is in charge of, among other things, the gang’s drug trafficking operations; ordering and coordinating acts of violence, including numerous murders; and the laundering of drug proceeds. Morales Zelaya and Velasquez Paz are both leaders of MS-13 in Honduras and close associates to Archaga Carías. MS-13’s drug trafficking operations led by Archaga Carías, Morales Zelaya, Velasquez Paz, and others include the processing, receiving, transporting, and distributing of multi-ton loads of cocaine shipped through Honduras and into the United States.
“MS-13’s brutal violence is fueled by firearms, funded by narcotics trafficking, and disguised by money laundering,” said Director John J. Durham of Joint Task Force Vulcan (JTFV). “As alleged in the superseding indictment, David Campbell and his co-conspirators procured and sold multi-ton loads of narcotics, deployed firearms, including machine guns, and laundered the drug proceeds, all in furtherance of the organization. Thanks to the tenacious efforts and collaboration of our law enforcement partners, he now will face justice in a U.S. courtroom.”
Archaga Carías and other MS-13 members and associates acting at his direction also provided protection for other drug trafficking organizations (DTO) engaged in transporting multi-ton loads of cocaine through Honduras and destined for the United States. Archaga Carías contracted out members of MS-13 as “Sicarios,” or hit men, to other DTOs for payment. In that role, MS-13’s Sicarios committed numerous murders for hire for DTOs trafficking cocaine through Honduras to the United States. Archaga Carías and MS-13 also supplied other DTOs with firearms, including machineguns, that were received from El Salvador, Nicaragua, and elsewhere. Archaga Carías – and Morales Zelaya, Velasquez Paz, and Portillo Santos, operating under Archaga Carías’ leadership – also ordered and coordinated murders of rival gang members and drug trafficking competitors in Honduras, as well as other members of MS-13 whom Archaga Carías believed had been disloyal to the gang.
Campbell was one of the principal suppliers of cocaine and weapons, including machineguns, to MS-13 in Honduras. As an associate of MS-13 and close confidant of Archaga Carías, Campbell planned and coordinated retaliatory acts of violence with Archaga Carías and assisted MS-13 and Archaga Carías in establishing businesses to launder the gang’s drug proceeds. Campbell and MS-13 used businesses they owned or controlled to launder drug proceeds, including through banks in the United States.
Morales Zelaya and Velasquez Paz were both leaders of MS-13 in Honduras and close associates of Archaga Carías. Morales Zelaya and Velasquez Paz each coordinated the gang’s drug trafficking business, acts of violence (including murders) against rivals, and the movement of proceeds from the gang’s illicit activities.
Portillo Santos was a high-ranking member of MS-13 in Honduras who reported to Morales Zelaya. Portillo Santos was responsible for leading MS-13 in one of the largest sectors in Honduras, which included the distribution and movement of large shipments of cocaine, acts of violence (including murders and kidnappings) of rival gang members, and contract murders carried out against rival drug dealers.
“Campbell’s arrest and extradition should serve as a clear message to those who support MS-13 and other transnational criminal organizations,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI will not cease its relentless pursuit of all suspects involved in this case until they are captured and brought to justice.”
“Every day, MS-13 ravages American neighborhoods with violence, drugs, and death,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “David Campbell allegedly enabled the exportation of violence and poison onto American streets as Mara Salvatrucha’s primary supplier of cocaine and weapons. FBI Houston’s work to ensure Campbell now faces U.S. justice sends a simultaneous message to MS-13 around the world — we will not stop pursuing you, we will not stop dismantling your networks, and we will not rest until we’ve eradicated the violence you bring into our society.”
Archaga Carías and Morales Zelaya remain at large. The $5 million reward offered by the U.S. Department of State remains valid today. Anyone with information that may lead to the arrest of Archaga Carías or Morales Zelaya can contact the FBI at 1-800-CALL-FBI. More information can be found at https://www.fbi.gov/wanted/topten, https://www.dea.gov/fugitives, and https://www.ice.gov/most-wanted.
If convicted, Campbell, Archaga Carías, Portillo Santos, Morales Zelaya, and Velasquez Paz face a maximum penalty of life in prison and a mandatory minimum of 40 years in prison.
The DEA’s Special Operations Division Bilateral Investigations Unit; the FBI San Diego, Houston, Los Angeles, and New York Field Offices; the FBI’s Criminal Investigative Division’s Safe Streets Gang Unit; HSI’s National Gang and Violent Crime Unit; and HSI’s New York and Tegucigalpa, Honduras, Field Offices investigated the case, with assistance from the FBI Legal Attaché in San Salvador, the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office, the Justice Department’s Violent Crime and Racketeering Section, the U.S. Attorney’s Office for the Southern District of Florida, and the U.S. Customs and Border Protection’s Air and Maritime Operations, for their assistance. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Campbell.
The JTFV and U.S. Attorney’s Office for the Southern District of New York’s National Security and International Narcotics Unit are handling the case. Assistant U.S. Attorney David J. Robles and Special Assistant U.S. Attorney Christopher Eason for the Southern District of New York and Trial Attorney Jacob Warren of the Justice Department are prosecuting the case.
Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with domestic and foreign law enforcement partners; designating priority MS-13 programs, cliques, and leaders who have the most impact on the United States for targeted prosecutions; and coordinating significant MS-13 indictments, including the first use of national security charges against MS-13 leaders. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including the Southern District of New York, the Eastern District of New York, the Eastern District of Texas, the District of New Jersey, the Northern District of Ohio, the District of Utah, the District of Massachusetts, the Southern District of Florida, the District of Alaska, the Southern District of California, the District of Nevada, the Eastern District of Virginia, and the District of Columbia, as well as the Justice Department’s National Security Division and the Criminal Division. All Justice Department law enforcement agencies are involved in the effort, including the FBI; DEA; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI plays a critical role in JTFV. The Department of State, Bureau of International Narcotics and Law Enforcement Affairs, and the U.S. Agency for International Development Office of Inspector General have also provided critical support for JTFV’s mission.
OCDETF also supports JTFV in its mission. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Previously Convicted Maryland Sex Offender Pleads Guilty to Distributing Child PornographyRead the Press Release
WASHINGTON –Raymon Edward Dandridge, 39, of Harwood, Maryland, pleaded guilty in U.S. District Court today to distributing more than 20 videos depicting adult men sexually abusing toddlers and infants. The plea agreement was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Dandridge already is serving a sentence for possession of child pornography on a 2022 conviction out of Ann Arundel County, MD. Today, Dandridge pleaded guilty before U.S. District Court Judge Royce C. Lamberth in Washington D.C. to a federal count of distribution of child pornography. Judge Lamberth scheduled sentencing for September 18, 2024.
According to court documents, Dandridge, aka “D4ALL” and “Ray Gozeinu,” communicated with an undercover FBI agent on April 26, 2023, over an encrypted messaging service. During the chat, Dandridge sent the undercover agent 20 videos depicting the sexual assaults of prepubescent children. Later, Dandridge agreed to meet the undercover agent and the undercover agent’s purported 8-year-old daughter “to play with her” on the afternoon of Friday, April 28, 2023. Law enforcement arrested Dandridge when he arrived at the Washington D.C. location for the meet-up.
When he is sentenced, Dandridge will face a mandatory minimum of 15 years in prison on the distribution of child pornography charge, due to his prior conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force in cooperation with the Metropolitan Police Department’s Youth Division. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
It was prosecuted by Assistant U.S. Attorneys Karen Shinskie and Caroline Burrell and former Assistant U.S. Attorney Amy Larson.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Plymouth Man Arrested for Paycheck Protection Program FraudRead the Press Release
BOSTON – A Plymouth man has been arrested and charged with wire fraud in connection with fraudulent Paycheck Protection Program (PPP) loan applications on behalf of business entities he owned and controlled.
Joseph Kerrissey, III, 46, was charged with three counts of wire fraud. Kerrissey was released following an initial appearance yesterday before U.S. District Court Magistrate Judge Kelley.
According to the charging documents, Kerrissey submitted three fraudulent loan applications seeking loans for business entities pursuant to the PPP. The loan applications inaccurately stated that Kerrissey was not on probation during the relevant time period. The loan applications also included fraudulent tax forms that were not filed with the IRS and reported inconsistent income.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Plymouth Police Department. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit is prosecuting the case.
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 and https://www.justice.gov/coronavirus/combatingfraud.
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 via the NCDF Web Complaint Form.The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburgh Resident Pleads Guilty to Fentanyl, Fluorofentanyl and Cocaine ChargesRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to federal drug charges, United States Attorney Eric G. Olshan announced today.
Andre Nunley, 50, pleaded guilty before United States District Judge William S. Stickman IV to conspiring to distribute and possess with intent to distribute 400 grams or more of fentanyl, 100 grams or more of fluorofentanyl, and 500 grams or more of cocaine, as well as attempting to possess with intent to distribute a quantity of fentanyl.
In connection with the guilty plea, the Court was advised that, between June 2022 and December 2023, Nunley was the subject of a joint investigation by federal, state, and local law enforcement operating under the High Intensity Drug Trafficking Areas (HIDTA) program in Beaver County. As part of the investigation, law enforcement seized over 500 grams of cocaine from a mid-level drug dealer as he left a brief meeting with Nunley. In January 2023, law enforcement executed federal search warrants upon both of Nunley’s known stash houses, resulting in the seizure of approximately 15,000 counterfeit oxycodone pills, 4,200 stamp bags, 40 boxes containing empty glassine bags, and bulk U.S. currency. A laboratory confirmed that the seized substances contained about 1,352 grams of fentanyl, 797 grams of a fluorofentanyl and fentanyl mixture, and 199 grams of fluorofentanyl. Fluorofentanyl and fentanyl are Schedule I and II controlled substances, respectively.
Following that seizure, law enforcement continued to investigate Nunley’s drug trafficking operation and identified a third residence used by Nunley. In December 2023, law enforcement intercepted a parcel addressed to that residence, which contained about two kilograms of fentanyl. During a controlled delivery operation of the seized parcel to the third residence, law enforcement encountered Nunley, who confessed to expecting a parcel containing drugs.
Judge Stickman scheduled sentencing for August 7, 2024. The maximum penalty for the conspiracy charge is not less than 10 years and up to life in prison, a fine of up to $10 million, or both. The maximum penalty for the attempt charge is a term of up to 20 years in prison, a fine of $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, Judge Stickman ordered Nunley remanded to the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Pennsylvania Office of Attorney General, and United States Postal Inspection Service conducted the investigation that led to the prosecution of Nunley.
Pasco Man Sentenced to Nearly 20 Years for Conspiring to Distribute over 100 Kilograms of Cocaine in the Tampa Bay AreaRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Jonathan Rivera-Roman (35, Hudson) to 19 years and 7 months in federal prison for conspiring to traffic cocaine and for distribution of cocaine. As part of his sentence, the court also entered an order of forfeiture in the amount of $108,000, which was seized from a co-conspirator. Rivera-Roman was arrested on March 29, 2023, and detained. He entered a guilty plea on November 8, 2023. Rivera-Roman’s co-defendant, Angel Martinez-Pantoja, was sentenced on February 23, 2024, to 10 years in prison. A third co-defendant, Oscar Borelli-Ortiz, is a fugitive from justice.
According to court documents, Rivera-Roman operated a drug trafficking organization in Pasco County that received cocaine shipped from Puerto Rico. Following several controlled purchases of cocaine from Martinez-Pantoja, authorities learned on August 28, 2021, of an imminent plan for the organization to be resupplied via Borelli-Ortiz in Orlando. Authorities conducted three traffic stops that evening and executed several search warrants the next day, resulting in the seizures of bulk cash, firearms, and several kilograms of cocaine.
According to testimony presented at sentencing, the Rivera-Roman organization was responsible for obtaining at least 100 kilograms of cocaine for distribution in the Tampa Bay area. Rivera-Roman also used a beauty product supply business to launder his drug proceeds.
This case was investigated by the Drug Enforcement Administration, the Pasco Sheriff's Office, and the Internal Revenue Service – Criminal Investigation as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF. It is being prosecuted by Assistant United States Attorney Dan Baeza.
Pascagoula Man Sentenced to 6 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, MS – A Pascagoula man was sentenced in federal court today to 72 months in prison for possession with intent to distribute methamphetamine.
Jerome Clifton Clegg, 39, was sentenced in U.S. District Court in Gulfport.
According to court documents, the Drug Enforcement Administration and the Southern Mississippi Metro Enforcement Team received information that Jerome Clifton Clegg was distributing large quantities of methamphetamine in Pascagoula. In August 2023, agents began surveillance of Clegg’s residence and observed drug transactions taking place. A traffic stop conducted on one individual who purchased drugs from Clegg yielded 58 grams of methamphetamine, and a traffic stop with a second individual yielded an additional 3 grams. Based on this information, agents conducted a search of Clegg’s home which yielded additional narcotics and a handgun.
On December 4, 2023, Clegg pled guilty to possession with intent to distribute a controlled substance.
U.S. Attorney Todd W. Gee and Special Agent in Charge Steven Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the South Mississippi Metro Enforcement Team.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Owner of Boston Pizzeria Chain Charged with Defrauding U.S. Small Business AdministrationRead the Press Release
BOSTON – The owner of Stash’s Pizza, who is currently facing alleged federal forced labor charges, has been indicted by a grand jury in Boston for allegedly submitting false information to the U.S. Small Business Administration (SBA) to obtain a loan on behalf of a business he no longer owned.
Stavros Papantoniadis, a/k/a “Steve Papantoniadis,” 49, of Westwood, was indicted on two counts of wire fraud. Papantoniadis, who is currently in federal custody on the alleged forced labor charges, will make an initial appearance in federal court in Boston at a later date.
According to court documents, Papantoniadis is the owner and operator of Stash’s Pizza, a chain of pizzerias in greater Boston. In April 2021, Papantoniadis sold one of his pizzerias located in Randolph, Mass., and the Secretary of State subsequently cancelled the limited liability company through which Papantoniadis owned the Randolph pizzeria.
Between November 2021 and January 2022, Papantoniadis allegedly applied for an Economic Injury Disaster Loan from the SBA. These loans were designed to provide relief for small businesses that suffered substantial economic injury during the COVID-19 pandemic. It is alleged that, in his submissions to the SBA, Papantoniadis falsely represented that he still owned and operated Boston Pizza Company in Randolph, claiming that he had 18 employees. However, Papantoniadis had allegedly sold the business several months before he applied for the loan. The SBA approved the loan and sent Papantoniadis $499,900.
In March 2023, Papantoniadis was arrested and charged with one count of forced labor. He was subsequently indicted by a federal grand jury on four counts of forced labor and three counts of attempted forced labor. He has remained in federal custody since his arrest. Papantoniadis has pleaded not guilty in this case and is awaiting trial, which is scheduled for May 20, 2024.The charges of wire fraud provide for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. The charges of forced labor and attempted forced labor, which are contained in a separate indictment, provide for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Northeast Region made the announcement today. Assistant U.S. Attorneys Timothy E. Moran, Chief of the Organized Crime & Gang Unit and Brian A. Fogerty of the Civil Rights & Human Trafficking Unit are prosecuting the case.
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 and https://www.justice.gov/coronavirus/combatingfraud.
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 via the NCDF Web Complaint Form.The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Oshkosh Sex Offender Indicted on Federal Child Pornography Charges.Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 9, 2024, a federal grand jury indicted Dakota J. DeGroot (age: 27) of Oshkosh, Wisconsin, for possessing child pornography as a repeat offender in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and 2252A(b)(2). The indictment alleges that DeGroot possessed electronic files containing child pornography on or about January 18, 2024.
DeGroot was previously convicted of possessing child pornography in Winnebago County Circuit Court in 2016. As a repeat offender, upon conviction of the offense alleged in the federal indictment, DeGroot would face a mandatory minimum sentence of 10 years and up to 20 years in federal prison. He also could be fined up to $250,000 and would continue to be obligated to register as a sex offender under state and federal law.
This case was investigated by the Winnebago County Sheriff’s Office and the Wisconsin Department of Corrections – Division of Community Corrections. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Orlando Convicted Felon Sentenced to 10 Years in Federal Prison for Unlawful Possession of FirearmsRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Robert Lee Pringle (35, Orlando) to 10 years in federal prison for possession of firearms and ammunition by a convicted felon. The court also ordered Pringle to forfeit the firearms and ammunition used in the offense. Pringle entered a guilty plea on January 16, 2024.
According to court documents, on May 3, 2022, an officer with the Orlando Police Department attempted to conduct a traffic stop on a stolen vehicle driven by Pringle. Pringle fled at a high rate of speed and later crashed into another vehicle, after which Pringle attempted to flee on foot before being detained. A search of the stolen vehicle Pringle was driving revealed two pistols and ammunition on the front passenger floorboard. Also on the front passenger floorboard was a backpack containing paperwork with Pringle’s name, prescription bottles with Pringle’s name, suspected narcotics, digital scales, sandwich baggies, and additional ammunition.
At the time, Pringle had multiple prior felony convictions, including carrying a concealed firearm, robbery, burglary of a conveyance, aggravated assault with a deadly weapon, grand theft third degree, and fleeing or attempting to elude a law enforcement officer at high speed or with wanton disregard. As a previously convicted felon, Pringle is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Megan Testerman.
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.
Orangeburg Man Sentenced to More than 7 Years in Federal Prison for Firearm ChargesRead the Press Release
COLUMBIA, S.C. —Tiree Keshawn Waymer, 29, of Orangeburg, was sentenced to more than seven years in federal prison after pleading guilty to being in possession of stolen firearms.
Evidence presented to the court showed that on March 2, 2022, Waymer led deputies from multiple agencies on a high-speed chase across state lines while in possession of six stolen firearms. Deputies with the Charlotte-Mecklenburg Police Department observed a vehicle matching the description of a reported stolen vehicle and attempted to stop the vehicle. The driver, later identified as Tiree Waymer, immediately refused to stop. The pursuit continued into South Carolina, when deputies with the Chester County Sheriff’s Office and the York County Sheriff’s Office took lead.
During the chase, Waymer drove at speeds nearing 100 mph, forced pedestrian and commercial vehicles off the road, drove in the wrong direction, and placed the lives of innocent bystanders and law enforcement in danger. When deputies stopped Waymer’s vehicle, he ran from the car but was later apprehended.
Law enforcement searched the stolen vehicle and recovered six stolen firearms. Further investigation revealed that on Feb. 25, 2022, the Blythewood Gun and Gold Exchange Pawn Shop was burglarized, and 13 guns were stolen. Law enforcement determined that the six guns in Waymer’s possession were stolen from the pawn shop five days earlier. After his arrest, law enforcement recovered another firearm stolen from the pawn shop from his residence.
Waymer is prohibited from possessing firearms and ammunition due to prior felony convictions, including criminal conspiracy, burglary 2nd degree (violent), a possession of stolen firearm, and possession of a stolen vehicle.
United States District Judge Joseph F. Anderson sentenced Tiree Keshawn Waymer to 92 months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Chester County Sheriff’s Office, the York County Sheriff’s Office, and the Charlotte-Mecklenburg Police Department. Assistant U.S. Attorney Ariyana Gore is prosecuting the case.
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Ohio Man Sentenced for Firearms ViolationRead the Press Release
WHEELING, WEST VIRGINIA – Joshua Anthony Doty, age 37, of Steubenville, Ohio, was sentenced today to 46 months for the unlawful possession of a firearm.
According to court documents and statements made in court, the West Virginia Division of Natural Resources was investigating multiple reports of hunting violations on private property in Brooke County. Officers found a video depicting Doty and a juvenile shooting guns at standing water on property owned by a coal company in Windsor Heights. Doty, who’s been convicted of multiple felonies and domestic violence, is prohibited from having firearms but admitted to having the shotgun used to fire the shots.
Doty will also be required to report for three years of supervised release following his prison sentence.
Assistant U.S. Attorney Clayton Reid prosecuted the case on behalf of the government.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia Division of Natural Resources.
U.S. District Judge John Preston Bailey presided.
Multiple defendants prosecuted on federal firearms, drug chargesRead the Press Release
SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include felony charges for illegal firearms possession and drug distribution, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
“Reducing violent crime in our communities requires a collaborative effort with our law enforcement partners to remove illegally possessed firearms from our streets,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “Active prosecution of these cases also discourages others from illegally using guns.”
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
Those indicted during the April term of the U.S. District Court Grand Jury include:
- Lial Stephens, 28, of Pooler, Ga., charged with two counts of Interference with Commerce by Robbery, and two counts of Possession of a Firearm in Furtherance of a Crime of Violence. The charges stem from armed robberies in September and November of 2023 at a Garden City, Ga., convenience store.
- Cornelius Denzel Butler, a/k/a “Juice,” 30, of Baxley, Ga., charged with Possession with Intent to Distribute Methamphetamine, Cocaine, Crack Cocaine, and Marijuana, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Raquan Williams, 23, of Savannah, charged with False Statement During the Purchase of a Firearm, and Illegal Receipt of a Firearm by a Person Under Indictment;
- Keith Javon Johnson, 31, of Savannah, charged with Possession of a Firearm and Ammunition by a Convicted Felon;
- Richard Bruce Salyer Jr., 48, of Forsyth, Ga., charged with Possession of a Firearm by a Convicted Felon; and,
- Eddie Robertson, 30, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
In addition, O’kere Shields, 22, of Savannah, charged with Possession of a Firearm by a Convicted Felon in a recently unsealed indictment.
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- Jacques B. Pope, 32, of Savannah, was sentenced to 120 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers investigating gunshots in a public area determined Pope possessed a pistol. Pope previously was convicted on federal firearms charges.
- Karron L. Shuman, 36, of Savannah, was sentenced to 86 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police found a pistol in Shuman’s vehicle during a traffic stop.
- Dennis Mitchell, 51, of Brunswick, Ga., was sentenced to 37 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Brunswick police officers found Mitchell in possession of a gun during a traffic stop.
- Jakobian Sentell Jones, 25, of Warrenton, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon, and Possession with Intent to Distribute Cocaine and Methamphetamine. Georgia State Patrol troopers found Jones in possession of a revolver during a traffic stop, and in possession of cocaine and methamphetamine during a subsequent search.
- Zanuck Lorenzo Berry, 43, of Martinez, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Drug Enforcement Administration agents searched Berry’s home in January 2023 as part of a drug trafficking investigation and found an assault-style rifle, two semiautomatic “ghost gun” pistols, a third handgun, and a shotgun.
- Othnell Christian Ferguson, 27, of Pembroke, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Statesboro police officers determined Ferguson possessed a pistol during a foot chase following a February 2023 traffic stop.
- Robert Antonio Green, 26, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. A probation officer from the Georgia Department of Community Supervision found a handgun in Green’s possession during a probation class.
- Desirae Heinsler, 38, of Eastman, Ga., awaits sentencing after pleading guilty to False Statement During the Purchase of a Firearm. After officers from the Rochester (NY) Police Department recovered multiple illegally possessed firearms, the investigation determined the guns originally were purchased in Georgia by Heinsler who provided false information to a licensed firearms dealer in Jeff Davis County.
- Tamarcus Antonio Heard, 37, of Washington, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. A Georgia State Patrol trooper found Heard in possession of a pistol during a traffic stop.
- Michael Jerome Germany, 50, of Grovetown, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Grovetown police officers found a pistol in Germany’s vehicle during a traffic stop.
- Arthur Eugene Cannon, 41, of Savannah, awaits sentencing after pleading guilty to Possession of a Stolen Firearm. Savannah Chatham Counter Narcotics Team investigators determined that Cannon illegally possessed a stolen pistol discovered during a drug trafficking investigation. A co-defendant, Thomas Allen Gordon, 56, of Savannah, awaits sentencing after pleading guilty to Possession of Methamphetamine and Fentanyl with Intent to Distribute.
- Jarrett Lamar Knight, 45, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. As described in the plea agreement, Knight was a convicted felon when he sold a shotgun to a confidential informant during an ATF investigation.
- Matthew Lacey, 26, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers arrested Lacey on warrants from an April 2023 domestic violence incident and found him in possession of a handgun.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Mother-Daughter Duo Sentenced to a Total of Twelve Years in Federal Prison for Robberies of Six Indianapolis BanksRead the Press Release
INDIANAPOLIS- Sierra Hunt, 56, of Indianapolis, has been sentenced to 68 months in federal prison after pleading guilty to bank robbery.
In October of 2023, Sierra’s daughter, Shamiya Hunt, was sentenced to 76 months in federal prison after pleading guilty to bank robbery and attempted bank robbery while on supervised release for a previous heroin trafficking conviction.
According to court documents, between April 9 and April 15, 2022, Sierra Hunt robbed four Chase Banks in the Indianapolis area. In each robbery, she approached the teller, gave a note demanding the teller put money in the bag and no one would get hurt, and left with cash. As a result of the four bank robberies committed by Sierra, the banks suffered a loss of $26,655.
One of the notes was written on the back of a Family Dollar store receipt. IMPD officers used that receipt to locate Sierra and subsequently arrest her. However, she was released on bond in April. While out on bond, Sierra assisted her daughter, Shamiya Hunt, as a getaway driver in two additional bank robberies.
In total, Sierra robbed four banks and participated in two additional bank robberies as the getaway driver. Shamiya robbed two banks:
#
DATE
LOCATION
DEFENDANT
1
April 9, 2022
Chase Bank
West 38th St.
Sierra Hunt
2
April 11, 2022
Chase Bank Cunningham Rd.
Sierra Hunt
3
April 13, 2022
Chase Bank
North Michigan St.
Sierra Hunt
4
April 15, 2022
Chase Bank
South East St.
Sierra Hunt
5
October 25, 2022
Chase Bank
Cunningham Rd.
Shamiya Hunt
Sierra Hunt- Driver
6
October 25, 2022
Regions Bank
E. 86th St.
Shamiya Hunt
Sierra Hunt-Driver
Sierra Hunt has been previously convicted of multiple felonies including theft, conversion, and child selling.
“It is incredibly disheartening to see a mother and daughter working together to victimize so many folks who were just going about their day working at and patronizing the bank,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Thanks to the quick investigative work of the FBI, these defendants have been held accountable for their actions. The serious federal prison sentence imposed here demonstrates that these crimes carry serious consequences.”
This case was investigated by the FBI. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that Hunt be supervised by the U.S. Probation Office for three years following her release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted these cases.
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.
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Missouri Woman Admits Attempting $1.6 Million Pandemic Loan FraudRead the Press Release
ST. LOUIS – A woman from O’Fallon, Missouri on Wednesday admitted submitting a series of fraudulent applications seeking pandemic loans totaling more than $1.6 million.
Dearika L. Binion, now 36, of O’Fallon, Missouri, was successful in obtaining two loans totaling $75,600.
Binion pleaded guilty in U.S. District Court in St. Louis Wednesday to three counts of bank fraud.
As part of her guilty plea, Binion admitted submitting a false and fraudulent Economic Injury Disaster Loan (EIDL) application to the Small Business Administration (SBA) on April 10, 2020, on behalf of Domi More, a company she registered in 2014. The application falsely inflated the number of employees, the gross revenues and costs of goods sold for the company. As a result of the fraudulent application, the SBA approved the loan and transferred $22,000 to Binion’s credit union account. She withdrew $6,000 in cash from that account on June 17, 2020, the same day it arrived, and another $13,000 the next day.
On July 8, 2020, Binion submitted another fraudulent EIDL application, this time on behalf of MTRLSTC LLC. She again lied about employees, gross revenues and cost of goods sold and falsely certified that she had neither submitted nor received any compensation for disaster losses. The company received a $53,600 loan on Aug. 3, 2020. Binion spent $45,244 on retail purchases and payments for prior retail purchases. Another $5,181 was used to pay a Chase credit card bill and $2,235 was transferred to others via Cash App.
On July 20, 2020, Binion submitted a fraudulent EIDL loan application seeking $59,500 for Bella Skin Spa LLC, but that loan was not approved.
On Sept. 23, 2020, Binion submitted another fraudulent application seeking $264,800 for Bella Skin Spa. This time she listed the company as a sole proprietorship and altered other information in the application but was still not successful in obtaining a loan.
She tried a third time after filing a registration of fictitious name with the Missouri Secretary of State for Bella Skin Spa on Jan. 21, 2021. On Feb. 4, 2021, she submitted a fraudulent EIDL loan application seeking $1.2 million. The SBA did not approve this application.
There are no employment records on file with Missouri’s Department of Labor indicating that Domi More, MTRLSTC, or Bella Skin Spa had any employees during 2020.
Binion is scheduled to be sentenced July 10. Each bank fraud charge is punishable by up to 30 years in prison, a $1 million fine or both prison and a fine.
The case was investigated by the FBI, the Drug Enforcement Administration, the Internal Revenue Service and the St. Louis County Police Department.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, violent street gangs, and transnational criminal organizations. The St. Louis Gateway OCDETF Strike Force is comprised of agents and officers from FBI, DEA, ATF, HSI, IRS, USSS, USPIS, USMS, St. Louis County Police Department, St. Charles County Police Department and St. Louis Metropolitan Police Department and the prosecution is being led by the Office of the United States Attorney for the Eastern District of Missouri.
Missoula woman sentenced to more than two years in prison for stealing two U.S. Forest Service pickup trucksRead the Press Release
MISSOULA — A Missoula woman who admitted to stealing property from the U.S. Forest Service was sentenced today to two years and two months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Kasey Nichol Hugs, 39, pleaded guilty in December 2023 to theft of government property.
U.S. District Judge Dana L. Christensen presided. The judge also ordered $11,836 restitution for the damage caused to the property Hugs stole.
The government alleged in court documents that on Dec. 26, 2020, a white Dodge Ram 2500 crew cab pickup truck, valued at approximately $40,000, and two government cell phones were stolen from the U.S. Forest Service Rocky Mountain Research Station in Missoula. Five days later, Hugs stole a second truck, a 2017 Ford crew cab, valued at more than $28,000, from the same facility. In the weeks that followed, Hugs drove the trucks to various businesses in Missoula. In January 2021, the Ford was located on the Flathead Indian Reservation and the Dodge was recovered from the side of Highway 200 in Lincoln. Both vehicles sustained property damage and were missing their truck bed toppers. Hugs was identified through surveillance videos and other evidence as having stolen the property.
Assistant U.S. Attorney Karla E. Painter prosecuted the case. The U.S. Forest Service and Missoula Police Department conducted the investigation.
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Missoula meth trafficker sentenced to 10 years in prisonRead the Press Release
MISSOULA — A Missoula man who admitted to a drug trafficking crime after he accepted a controlled delivery of a package that had contained more than two pounds of methamphetamine was sentenced today to 10 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Marcus Lejon Williams, 45, pleaded guilty in December 2023 to attempted possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that law enforcement received information that Williams was distributing large amounts of meth, was receiving it through the mail and had firearms at his residence. In January 2022, a U.S. Postal Service inspector searched a package containing suspected meth and was addressed to a person at Williams’ address. The package contained approximately 1,000 grams of meth, which is 2.2 pounds. Postal records showed two other similar packages were shipped from California to Williams’ address in May 2021 and September 2021. Law enforcement made a controlled delivery of the package, with the meth removed. Williams and the person to whom the package was addressed came out to accept the package in a parking lot. A search warrant was executed on the residence and officers located a 9 mm handgun. Williams admitted that the package was for him and that he had been getting meth from his source in California once every two months for the past six or seven years. Williams also stated that he had been “in the game” for 25 or 26 years, was tired of doing it for a living and estimated that he made $120,000 to $130,000. Williams also admitted that the gun was his and that he used it for protection.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case. The U.S. Postal Inspection Service, Missoula Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
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.
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Mexican Man Sentenced to 10 Months for False Representation of a Social Security NumberRead the Press Release
United States Attorney Susan T. Lehr announced that on April 10, 2024, Emmanuel Hurtado-Vargas, 36, of Mexico, was sentenced in federal court for false representation of a social security number. United States District Judge Brian C. Buescher sentenced Hurtado-Vargas to 10 months’ imprisonment. There is no parole in the federal system. After his release from prison, Hurtado-Vargas will be required to complete a 3-year term of supervised release. Hurtado-Vargas will be removed (deported) by immigration authorities after he completes his term of imprisonment.
Hurtado-Vargas was working under an assumed name as a member of the workforce at Packers Sanitation Services, Inc. (PSSI). In April of 2013, Homeland Security Investigations (HSI) investigators received information that several people working at PSSI provided fraudulent documents to secure employment. Hurtado-Vargas was one of those found to have secured employment at PSSI using a social security number belonging to a victim who had filed an identity theft complaint with the Federal Trade Commission. Specifically, Hurtado-Vargas used identity documents to complete a Form I-9, Employment Eligibility Verification, including a fraudulent social security card (displaying the victim’s true name and social security number) and an identification card falsely purporting to have been issued in Kansas.
Hurtado-Vargas was released from custody and placed on pretrial supervision in 2013 after his initial court appearance. He later failed to appear at a change of plea hearing scheduled for October 8, 2013, and a warrant for his arrest was issued. Hurtado-Vargas remained in fugitive status until he was arrested on November 17, 2023.
This case was investigated by Homeland Security Investigations.
Metro Attorney and Metro Real Estate Broker Charged in "Ghost Licensing" Scheme to Facilitate Black-Market Marijuana OperationsRead the Press Release
OKLAHOMA CITY – Today, an eight-count Indictment was unsealed, charging MATTHEW ALAN STACY, 44, of Blanchard, CHONG IU PHU, 47, and CHANH IU PHU, 41, both of Edmond, for their roles in facilitating the black-market marijuana industry in Oklahoma, announced U.S. Attorney Robert J. Troester.
On April 2, 2024, a federal grand jury returned an eight-count Indictment, charging Matthew Alan Stacy, Chong Iu Phu (Phu), and Chanh Iu Phu (Chanh) with drug conspiracies. Additionally, the Indictment charges Stacy with one count of maintaining a drug-involved premises, Phu with four counts of maintaining a drug-involved premises, and Chanh with possession of marijuana with intent to distribute.The Indictment alleges that Phu, a real estate broker, and Stacy, an attorney, conspired to aid and abet marijuana traffickers in Oklahoma by making false and fraudulent representations on applications for state licenses to operate marijuana farms—all on behalf of their black-market marijuana trafficker clients. Under Oklahoma law, to own and operate a medical marijuana grow, applicants must obtain a license through the Oklahoma Medical Marijuana Authority (OMMA) and register with the Oklahoma State Bureau of Narcotics and Dangerous Drugs (OBN). Oklahoma law also currently requires that any commercial marijuana grow is at least 75% owned by Oklahoma residents.
The Indictment alleges that Phu and Stacy helped their clients evade these residency requirements and establish black-market marijuana farms. Court documents allege specific instances where Phu and Stacy either purchased, or facilitated the purchase of, Oklahoma residents’ personal identifying information—which Phu and Stacy then used on applications for OMMA licenses and OBN registrations that they submitted on behalf of persons who did not qualify to serve as majority owners and operators of commercial marijuana grows. The Indictment specifically alleges that straw owners listed by Phu included an employee, as well as Phu’s parents.
The Indictment further alleges that Phu, along with his brother Chanh, served as a one-stop-shop for marijuana traffickers from other states seeking to set up marijuana grows, many of which operated on the black market. In addition to carrying out the alleged ghost-licensing scheme, Phu is charged with using his brokerage firm and network of property-management and property-investment companies to service the housing and/or real estate needs of black-market marijuana traffickers by brokering land sales for them across Oklahoma, renting them land on which to operate their black-market marijuana grows, and renting them residences which served as marijuana stash houses and personal residences of the owners of black-market grows. The Indictment also alleges that Phu and Chanh themselves were directly involved in the operation of black-market grows, and that Stacy rented land to individuals he knew were not licensed to grow, and allowed the black-market operation to operate on his land.
If found guilty, Stacy, Phu, and Chanh all face up to life in federal prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (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.
The charges are the result of more than two years of statewide investigations led by the Drug Enforcement Administration – Oklahoma City District Office, the FBI Oklahoma City Field Office, the Internal Revenue Service – Criminal Investigations, with the assistance of Homeland Security Investigations, and OBN.
Assistant U.S. Attorneys Nick Coffey and Elizabeth M. Bagwell are prosecuting the case.
The public is reminded that these charges are merely allegations, and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to the attached Indictment and public filings for more information.
McKees Rocks Man Pleads Guilty to Fentanyl Trafficking ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of McKees Rocks, Pennsylvania, pleaded guilty in federal court to a charge of possession with the intent to distribute fentanyl, United States Attorney Eric G. Olshan announced today.
Devon Lamont Johnson, 36, pleaded guilty to one count before United States Chief District Judge Mark R. Hornak.
In connection with the guilty plea, the Court was advised that, after a controlled purchase of fentanyl was made from Johnson, Allegheny County detectives executed a search warrant for a McKees Rocks residence from which Johnson was selling fentanyl. The search revealed distribution quantities of fentanyl consistent with the drugs Johnson had sold during the controlled purchase. According to court documents filed by the government, Johnson has two prior drug trafficking convictions, including one for distribution of heroin in the federal court in the Northern District of Western Virginia.
Judge Hornak scheduled sentencing for September 11, 2024. The law provides for a maximum total sentence of up to 30 years in prison, a fine of $2 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police conducted the investigation that led to the prosecution of Johnson.
Man Who Committed Three St. Louis Area Robberies Sentenced to 129 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a man from Florissant, Missouri to 105 months in prison for robbing two area banks and a fast-food restaurant with what appeared to be a handgun.
Judge Autrey also sentenced Ricardo L. Rusan, 58, to an additional 24 months in prison for violating his supervised release in a 2005 bank robbery case.
On Jan. 1, 2019, Rusan robbed a Church’s Chicken in Green Park, in south St. Louis County. On April 16, 2019, he robbed a Commerce Bank in Clayton. Two days later, he robbed a Bank of America in St. Peters.
Rusan pleaded guilty in U.S. District Court in August to two counts of bank robbery and one other robbery charge.
The case was investigated by the St. Louis County Police Department, the St. Peters Police Department, the Clayton Police Department and the FBI. Assistant U.S. Attorney Cassandra Wiemken prosecuted the case.
Man Who Bound and Raped Au Pair Pleads No ContestRead the Press Release
Winfree planned to kill the woman and hide her body to avoid prosecution
LANSING, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Arisknight Arkin-Everett Winfree, 31, of East Lansing, plead no contest to the five counts against him; kidnapping, coercing and enticing someone to travel for the purposes of illegal sexual activity, attempted coercion and enticement, and two counts of sexual exploitation of a minor. A no contest plea is a defendant's admission that while he does not want to plead guilty, the prosecutor has sufficient evidence to convict him of the crimes. Winfree faces a potential maximum sentence of life in prison. The previous release announcing the indictment against Winfree can be viewed here.
“Winfree posed a danger to the whole world from his home here in West Michigan,” said U.S. Attorney Mark Totten. “My office will do everything in its power to seek out and prosecute perpetrators like him, who use the Internet to exploit others. To victims, we stand ready to listen and to protect. And to everyone who uses the internet, be vigilant: you never know for sure who is on the other side of the screen.”
Prior to accepting the no contest plea, the Court required the United States to identify what evidence it would have presented at trial. That evidence included that Winfree used the website AuPair.com to create a fake listing to lure au pairs to his home, where he intended to sexually assault them. A woman from Kansas came and escaped after her parents called the police. An Italian au pair came, and Winfree handcuffed, bound, and raped her. He then spoke with his friend Paul Heiselman, indicating to Heiselman he intended to kill the Italian woman and dispose of her body to avoid detection or prosecution. Winfree also pled no contest to two counts of producing child pornography, after he coerced 16- and 17-year-old girls to send him nude images through social media apps. He picked up the 17-year-old from school and recorded himself having sex with her. The complete statement of facts outlining what the United States would have presented at trial is attached to this press release.
Today, the Court also sentenced Winfree’s friend, Paul Heiselman, 33, of Ann Arbor, to 41 months for possessing some of the child pornography Winfree produced. After receiving one of those videos of child pornography, Heiselman remarked, “she ready for the cams,” an apparent reference to creating amateur pornography for wider distribution.
“The collective investigative efforts of the FBI and East Lansing Police Department prevented Mr. Winfree from potentially victimizing countless other young women, said” Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We remain grateful for the bravery of the victims for coming forward to law enforcement. This case is stark reminder of the dangers and reach predators have through online methods, and how vigilant we must be while using the internet.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following website: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Winfree and Heiselman cases were prosecuted by Assistant United States Attorney Davin Reust, and they were investigated by the East Lansing Police Department and the FBI.
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Man Sentenced for being a Drug User Possessing a FirearmRead the Press Release
United States Attorney Susan Lehr announced that Charees Loftin, 19, of Omaha, Nebraska, was sentenced April 10, 2024, in federal court in Omaha for possessing a firearm as an unlawful user of controlled substances. United States District Judge Brian C. Buescher sentenced Loftin to 24 months’ imprisonment. There is no parole in the federal system. After Loftin’s release from prison, he will begin a 3-year term of supervised release.
On January 5, 2023, members of the Omaha Police Department (OPD) went to 34th & Fowler Circle, Omaha after obtaining information that Loftin, wanted for questioning in a shoplifting incident, may be at a nearby residence. Officers located Loftin at the home and took him into custody. OPD searched the southeast bedroom where Loftin had been reportedly sleeping and located a black Coach brand bag behind a dresser in the room. A Glock, Gen 4, model 29, 10 mm handgun was inside the bag. Also in the bag, was an orange container with five (5) suspected Percocet pills. In the same bedroom, OPD located eight (8) bags of THC cartridges.
Loftin was subsequently transported to OPD where he waived his rights and agreed to be interviewed. He told detectives that he was aware that he had a warrant out for his arrest due to the shoplifting incident. Loftin also told detectives that the THC cartridges belonged to him and that he smokes marijuana as well as THC cartridges. Lofting then stated that the firearm located in the southeast bedroom, which he identified as being a Glock 29, 10 mm, was also his.
The Bureau of Alcohol, Tobacco, Firearms and Explosives examined and determined that the Glock handgun was manufactured outside of the State of Nebraska.
This case was investigated by the Omaha Police Department.
- Madison Man Sentenced to 7 ½ Years in Prison for Attempted Firebombing of Madison Building in 2022
Licensed firearms dealer arrested for selling gun to five-time felonRead the Press Release
LAREDO, Texas – The owner of Rick’s Armory LLC has been taken into custody for allegedly selling a firearm to a convicted felon, announced U.S. Attorney Alamdar S. Hamdani.
Ricardo Estevis Jr., 31, Laredo, is expected to make his initial appearance before U.S. Magistrate Judge Diana Song Quiroga April 11 at 9:30 a.m.
According to the criminal complaint unsealed upon his arrest, Estevis had applied for a federal position. As part of the employment process, the investigation allegedly revealed he had sold a Sig P365 handgun to someone be knew to be a felon. The charges also indicate Estevis further attempted to circumvent the appropriate procedures by conducting the purchase as a private sale.
The complaint alleges the buyer had five felony convictions and has been prohibited per federal law from possessing a firearm or ammunition since 2004.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with assistance from the U.S. Marshals Service, Laredo Police Department and other federal, state and local agencies. Assistant U.S. Attorney Homero Ramirez is prosecuting the case.
This case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Leader of Seven Mile Bloods Street Gang Sentenced to Life in Prison After Being Convicted of Racketeering, Murder, and Other Related OffensesRead the Press Release
DETROIT –The leader of the Seven Mile Bloods Street Gang was sentenced to life in prison today after having been convicted in December, 2023 of 22 counts, including racketeering conspiracy, murder, attempted murder, and related firearms offenses, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Division.
Billy Arnold, age 37, was convicted of RICO Conspiracy, two counts of Murder in Aid of Racketeering, 10 counts of Attempted Murder in Aid of Racketeering, and multiple firearm counts following a six-week trial, a federal jury before Chief Judge Sean Cox in the Eastern District of Michigan.
“The harshest sentences are reserved for the most serious crimes and criminals. They are reserved for people like Billy Arnold, who killed multiple people, tried to kill many others, and terrorized an entire community,” said U.S. Attorney Ison. “With this sentence, Arnold’s victims received some small measure of justice. This sentence should also send a message to others. To those who commit acts of violence: We will not stand for it any longer. And, to the vast majority of the residents of the “Red Zone” and all over Detroit and the Eastern District of Michigan, who want nothing more than to live in peace: We have your back. We will be by your side, working every day to prevent violence from occurring. But when it does, we will stand with you then too. And we will use all of our resources to bring to justice those who don’t stop shooting.”
“Local gangs such as the Seven Mile Bloods utilize violence and firearm threats to spread fear within the community,” stated Cheyvoryea Gibson, the Special Agent in Charge of the FBI in Michigan. “This sentencing sends a message that the Violent Gang Task Force of the FBI will continue to take a stand against those who engage in street violence and retaliation to safeguard the citizens of Detroit. I would like to recognize and thank the men and women of our task force for their dedication and tireless work during this investigation.”
According to evidence presented during the trial, the Seven Mile Bloods operated on the east side of Detroit, between Gratiot Avenue and Kelly Road and between Seven and Eight Mile Roads. Seven Mile Bloods or “SMB” members claimed this area as their territory and referred to it as the “Red Zone.” The area is in zip code 48205, which SMB members referred to as “4-8-2-0-Die.”
Evidence presented at trial showed an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that Arnold committed in July 2014. Arnold, who was on parole at the time, encountered two rival gang members during a meeting at a parole office in Detroit. After the meeting, Arnold waited outside the parole office until the rival gang member left. Arnold followed the rival gang members and their two companions a short distance before opening fire, killing one of the victims and seriously injuring another. Following the murder, the Seven Mile Bloods and rival gangs began violently attacking one another and posted respective “hit lists” on social media. The violence reached a boiling point in 2015 when during a one-month span, Arnold murdered one rival gang member, and shot numerous others. One of Arnold’s victims, who was shot while taking his two young daughters for a walk, was paralyzed as a result of the shooting. Arnold shot another victim, who was only 15 years old at the time of the shooting, while the victim was at his first day of work at a banquet hall in Roseville. Arnold shot the victim while attempting to murder a rival gang member who was standing near the victim in a parking lot. The 15-year-old victim and the rival gang member survived the shooting. On September 26, 2015, Arnold and another Seven Mile Blood member were arrested following a high-speed chase in Detroit. Following the chase, law enforcement recovered an assault rifle from the vehicle that was used in one murder and several other shootings.
The investigation further resulted in the seizure of more than 20 firearms, including several high-powered assault rifles.
Arnold is the 20th member or associate of the Seven Mile Bloods to have been convicted as a result of the investigation.
This case was the result of a collaborative effort by multiple law enforcement agencies. Investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Michigan Department of Corrections and Michigan State Police, with the cooperation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA). Also assisting in the investigation were the Charleston and South Charleston Police Departments in West Virginia.
Last Charged Collegiate Track Athlete Sentenced for Moving Money Overseas for Fraud SchemesRead the Press Release
Hattiesburg, Miss. – A Marietta, Georgia woman was sentenced to three years of probation and ordered to pay a $74,847.52 fine and restitution in the amount of $123,116.50 for her role in an overseas fraud scheme.
Aniekeme Etim, 24, was sentenced in U.S. District Court in Hattiesburg.
According to court documents and information presented to the Court, between 2018 and 2022, fraudsters based in Nigeria targeted men and women across the United States in romance scams, fraudulent goods scams, and military scams. The victims of the fraud schemes would be instructed to send money to individuals based in the United States, who would then transfer the money ultimately back overseas.
After investigating the money transfers, the FBI determined that Etim, Uyoyo Mercy Abire, Raymond Ekevwo, Toluwani Adebakin, Ngoni Chadyiwa, and Emmanuel Ineh, were all receiving and transferring the proceeds from the fraud schemes. At the time that they were engaged in this activity, each of the individuals were collegiate track and field athletes.
Etim and Adebakin, originally from Nigeria, were track and field athletes at William Carey University. Abire, originally from Nigeria, was a track and field athlete at Louisiana State University. Ekevwo, originally from Nigeria, was a track and field athlete at the University of Florida. Ngoni Chadyiwa, originally from Zimbabwe, was a track and field athlete at William Carey University. Finally, Emmanuel Ineh, originally from Nigeria, was a track and field athlete at William Carey University and the University of Alabama.
Ultimately, the investigation did not show that any of the athletes directly contacted any of the fraud victims. However, as a result of the fraud schemes, the athletes received funds from over 100 victims and transferred over $820,000.00 overseas.
Etim was sentenced today after pleading guilty to aiding and abetting the operation of an unlicensed money transmission business. Abire pleaded guilty to conspiracy to commit money laundering and was sentenced to 41 months in prison followed by 3 years of supervised release. Ekevwo pleaded guilty to aiding and abetting the operation of an unlicensed money transmission business and was sentenced to 46 months in prison followed by 3 years of supervised release. Adebakin pleaded guilty to money laundering and was sentenced to 36 months in prison followed by 3 years of supervised release. Chadyiwa pleaded guilty to aiding and abetting the operation of an unlicensed money transmission business and was sentenced to three years of probation. Ineh pleaded guilty to money laundering and was sentenced to time served and 3 years of supervised release.
Additionally, as part of their sentence, all of the defendants were ordered to pay restitution to the victims from whom they personally received funds. Each of the defendants also remain subject to potential deportation and/or removal.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement..
The Federal Bureau of Investigation investigated the case.
Assistant United States Attorney Jonathan Buckner and former Assistant United States Attorney Andrew Eichner prosecuted the case.
Lane County Diesel Repair Shop and Shop Owner Plead Guilty to Clean Air Act ViolationsRead the Press Release
EUGENE, Ore.—A Lane County, Oregon, diesel repair shop and its owner pleaded guilty today in federal court to knowingly and intentionally tampering with pollution monitoring devices on at least 184 vehicles in violation of the Clean Air Act.
Diesel & Offroad Authority, LLC, located in Veneta, Oregon, and its owner and operator, Christopher Paul Kaufman, 38, a resident of Veneta, pleaded guilty to tampering with pollution monitoring devices.
As part of their plea agreements, Diesel & Offroad Authority and Kaufman have agreed to pay $150,000 each in criminal fines and serve three years terms of probation.
“Diesel & Offroad Authority and its owner put profits over our community’s health and safety by amplifying diesel engines’ noxious fumes,” said Nathan J. Lichvarcik, Chief of the U.S. Attorney’s Office Eugene and Medford Branch Offices. “We will continue working closely with our partners at EPA to hold accountable businesses that violate our nation’s environmental protection laws.”
“The defendants in this case illegally tampered with the onboard diagnostics systems and removed the emissions control components from hundreds of diesel trucks,” said Special Agent in Charge Lance Ehrig of the Environmental Protection Agency’s Criminal Investigation Division (EPA CID) in Oregon. “The pollution that results from vehicle emissions can lead to serious health conditions and has been linked to increased respiratory disease and childhood asthma. This guilty plea demonstrates that EPA will vigorously prosecute those who violate laws designed to protect our communities from harmful air pollution.”
According to court documents, beginning in at least 2018 and continuing through 2022, Diesel & Offroad authority tampered with and disabled emissions control systems of at least 184 diesel vehicles in violation of the Clean Air Act. Diesel & Offroad Authority charged its customers approximately $2,300 each for the emissions modifications and collected more than $378,000 for the unlawful services over an approximately four-year period.
As owner of Diesel & Offroad Authority, Kaufman oversaw and participated in the illegal modification of vehicles, including by procuring various automotive parts used in the process and engaging in and directing employees in the removal of emissions control equipment.
On March 12, 2024, Diesel & Offroad Authority and Kaufman were charged by federal criminal information with violating the Clean Air Act by tampering with pollution monitoring devices.
Diesel & Offroad Authority and Kaufman will be sentenced on July 17, 2024.
This case was investigated by EPA CID. It is being prosecuted by William M. McLaren, Assistant U.S. Attorney for the District of Oregon.
If you witness an environmental event that may lead to an immediate threat to human health or the environment, please call 9-1-1. After alerting local emergency authorities, please also report incidents to the EPA’s Report a Violation website (https://echo.epa.gov/report-environmental-violations) or by calling the National Response Center at 1-800-424-8802.
Keystone Heights Multi-Convicted Felon Pleads Guilty to Illegally Possessing AmmunitionRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Allen Tereal Grimes (33, Keystone Heights) has pleaded guilty to possession of ammunition by a convicted felon. Grimes faces up to 15 years in federal prison and forfeiture of the ammunition, which is alleged to be traceable to his offense. A sentencing date has not yet been set. Grimes made his initial appearance in federal court on March 4, 2024, and was ordered detained.
According to court records, on August 11, 2023, Grimes was in possession of Winchester 9mm ammunition, among other ammunition. At the time of the incident, Grimes had seven prior felony convictions, including battery on a law enforcement officer, resisting arrest with violence, fleeing and eluding a police officer, felony battery, and assault with intent to commit to a felony. As a previously convicted felon, Grimes is prohibited from possessing ammunition under federal law.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
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.
Justice Department Publishes New Rule to Update Definition of “Engaged in the Business” as a Firearms DealerRead the Press Release
The Justice Department today announced it has submitted to the Federal Register the “Engaged in the Business” Final Rule, which makes clear the circumstances in which a person is “engaged in the business” of dealing in firearms and thus required to obtain a federal firearms license, in order to increase compliance with the federal background check requirement for firearm sales by federal firearms licensees.
“Under this regulation, it will not matter if guns are sold on the internet, at a gun show, or at a brick-and-mortar store: if you sell guns predominantly to earn a profit, you must be licensed, and you must conduct background checks,” said Attorney General Merrick B. Garland. “This regulation is a historic step in the Justice Department’s fight against gun violence. It will save lives.”
“The Bipartisan Safer Communities Act enhanced background checks and closed loopholes, including by redefining when a person is ‘engaged in the business’ of dealing in firearms. Today’s rule clarifying application of that definition will save lives by requiring all those in the business of selling guns to get a federal license and run background checks — thus keeping guns out of the hands of violent criminals,” said Deputy Attorney General Lisa Monaco. “I applaud the hard work of ATF in drafting this rule and reviewing the hundreds of thousands of public comments, which overwhelmingly favored the rule announced today. Because of that work, our communities will be safer.”
“This is about protecting the lives of innocent, law-abiding Americans as well as the rule of law. There is a large and growing black market of guns that are being sold by people who are in the business of dealing and are doing it without a license; and therefore, they are not running background checks the way the law requires. And it is fueling violence,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Today’s Final Rule is about ensuring compliance with an important area of the existing law where we all know, the data show, and we can clearly see that a whole group of folks are openly flouting that law. That leads to not just unfair but, in this case, dangerous consequences.”
The Bipartisan Safer Communities Act (BSCA), enacted June 25, 2022, expanded the definition of engaging in the business of firearms dealing to cover all persons who devote time, attention, and labor to dealing in firearms as a regular course of trade or business to predominately earn a profit through the repetitive purchase and sale of firearms. On March 14, 2023, President Biden issued Executive Order 14092, which, among other things, directs the Attorney General to develop and implement a plan to clarify the definition of who is engaged in the business of dealing in firearms and thus required to obtain a federal firearms license. The Final Rule conforms the ATF regulations to the new BSCA definition and further clarifies the conduct that presumptively requires a license under that revised definition, among other things.
Federally licensed firearms dealers are critical to federal, state, local, Tribal, and territorial law enforcement in our shared goal of promoting public safety. Licensees submit background checks on potential purchasers to the FBI’s National Instant Criminal Background Check System, which helps to keep firearms out of the hands of prohibited persons. Further, licensees keep records of sales transactions to help ensure that when a gun is used in a crime and recovered by law enforcement it can be traced back to the first retail purchaser; they help identify and prevent straw purchasers from buying firearms on behalf of prohibited persons and criminals; and they facilitate safe storage of firearms by providing child-safety locks with every transferred handgun and offer customers other secure gun storage options. Unlicensed dealing, however, undermines these public-safety features — which is why Congress has long prohibited engaging in the business of dealing in firearms without the required license.
To increase compliance with the statutes Congress has enacted, the Final Rule identifies conduct that is presumed to require a federal firearms license. And, in addition to implementing the revised statutory definition discussed above, the Final Rule clarifies the circumstances in which a license is — or is not — required by, among other things, adding a definition of “personal firearms collection” to ensure that genuine hobbyists and collectors may enhance or liquidate their collections without fear of violating the law. The Final Rule also provides clarity as to what licensees must do with their inventory when they go out of business.
The Final Rule goes into effect 30 days after the date of publication in the Federal Register.
On Sept. 8, 2023, the Justice Department published a notice of proposed rulemaking, and during the 90-day open comment period, ATF received nearly 388,000 comments.
The final rule, as submitted to the Federal Register, can be viewed here.
Please note: This is the text of the Engaged in the Business Final Rule as signed by the Attorney General, but the official version of the Final Rule will be as it is published in the Federal Register.
Learn more about the rulemaking process here.
Jury Convicts Fentanyl Supplier of Conspiracies, Distribution, and Causing A Near-Fatal OverdoseRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has found Joseph Marion (41, St. Petersburg) guilty of two counts of conspiracy to distribute fentanyl, heroin, methamphetamine, and crack cocaine; one count of distributing fentanyl; and one count of distributing a mixture of fentanyl and heroin that resulted in serious bodily injury. Marion previously pleaded guilty to two counts of possessing fentanyl, heroin, methamphetamine, and crack cocaine with the intent to distribute. Marion faces a minimum mandatory penalty of 20 years, up to life, in federal prison. His sentencing hearing is scheduled for July 16, 2024.
According to testimony and evidence presented at trial, Marion was a second-tier supplier of fentanyl, heroin, methamphetamine, and crack cocaine. He imported fentanyl and fentanyl analogues from China via the U.S. mail, blended and packaged the controlled substances himself, and then sold the drugs from his home to street dealers who further distributed them to users. During the trial, one of the street dealers testified that she bought 40 - 100 bags of fentanyl from Marion each day, every day, for several years. In November 2019, a woman who was with Marion in his apartment snorted Marion’s fentanyl, thinking it was heroin, and nearly died. Paramedics were able to save her, though she was hospitalized for days afterward.
In November 2019, agents executed a search warrant for Marion’s apartment and seized large quantities of fentanyl, heroin, methamphetamine, crack cocaine, and marijuana, as well as thousands of branded wrappers used to package fentanyl and heroin.
Marion was known by the nickname “Backpage Jay” because his other source of illicit income was advertising and “managing” prostitutes on the now-defunct website Backpage.com.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, the Pinellas County Sheriff’s Office, the St. Petersburg Police Department, and the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney Michael M. Gordon.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Janesville Man Sentenced to 7 Years for Possessing a Firearm as a FelonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Kyle Richards, 35, Janesville, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for possessing a firearm as a felon. This prison term will be followed by a 3-year term of supervised release. Richards pleaded guilty to this charge on January 18, 2024.
On May 4, 2023, officers with the Janesville Police Department executed a search warrant at Richard’s apartment in Janesville, as part of an on-going drug investigation. In the living room, officers found cocaine, drug scales, and tools for cooking crack cocaine. Inside a bathroom closet, officers located four firearms and ammunition. In addition, on Richards’s phone, officers found a video showing Richards with several firearms inside of that same bathroom.
Richards is prohibited from legally possessing a firearm as a result of several felony convictions, including a 2015 conviction for possessing a firearm as a felon. Richards was on state supervision for that conviction at the time of the conduct in this case. The sentence imposed in this case will run concurrently with a five-year prison sentence Richards received for violating that supervision.
At sentencing, Judge Peterson noted that Richards’s drug distribution undercut any suggestion that he was merely an addict supporting an addiction. Judge Peterson also noted how the combination of drugs and firearms created a risk of violence.
The charge against Richards was the result of an investigation conducted by the Janesville Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Irondale, Alabama Man Charged with Detonating an Explosive Device Outside of the Alabama Attorney General’s OfficeRead the Press Release
Montgomery, Alabama – An Irondale, Alabama, man is facing federal charges for his alleged role in detonating an explosive device in downtown Montgomery, Alabama. On April 10, law enforcement arrested Kyle Benjamin Douglas Calvert, 26, on charges of malicious use of an explosive and possession of an unregistered destructive device.
“Thanks to the work of the FBI and our state and local law enforcement partners, this defendant is being held accountable for allegedly detonating an explosive device outside of the Alabama Attorney General’s Office,” said Attorney General Merrick B. Garland. “The Justice Department has no tolerance for acts of violence targeting those who serve the public.”
“Federal, state, and local law enforcement agents worked tirelessly to investigate this matter,” stated Acting United States Attorney Jonathan S. Ross. “The arrest today is a reflection of the way in which close cooperation among law enforcement agencies facilitates the pursuit of justice. I am grateful for the efforts of all involved.”
According to the indictment and other court documents, an explosive device was detonated on Feb. 24 at approximately 3:42 a.m. outside of the Alabama Attorney General's Office near the intersection of Washington Avenue and South Bainbridge Street. No injuries or major damage to nearby buildings were reported. Agents and Troopers with the Alabama Law Enforcement Agency, along with special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and officers from the Montgomery Police Department, responded to the scene when remnants of the device were discovered.
The case was unsealed today by the United States District Court for the Middle District of Alabama. Calvert is scheduled for his initial appearance in federal court today in Montgomery at 1:30pm. If convicted, Calvert faces a minimum penalty of five years in prison and a maximum of 20 years in prison with no possibility of parole. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI Mobile Field Office, Montgomery Resident Agency Office, Alabama Law Enforcement Agency, and Alabama Attorney General’s Office investigated the case.
Assistant U.S. Attorneys Russell T. Duraski and Brett J. Talley for the Middle District of Alabama are prosecuting the case.
Hopkins County Man Sentenced to 18 Years for Distribution of Child PornographyRead the Press Release
COVINGTON, Ky. – A Hanson, Ky., man, Michael Earl Huey, 66, was sentenced on Wednesday, by U.S. District Judge David Bunning, to 18 years in prison, for distribution of child pornography.
According to his plea agreement, on October 17, 2022, an online covert employee with law enforcement posted a message on a chat thread asking, “Any pervs in Kentucky.” Huey responded by sending direct messages to the covert employee. Huey eventually shifted their conversation to another messaging platform. There, Huey sent the covert employee several depictions of child pornography. Huey admitted that he knowingly distributed these visual depictions, knowing they contained minors engaged in sexually explicit conduct.
On November 16, 2022, law enforcement searched Huey’s residence and found his phone, which contained approximately 65 images and 16 videos of child pornography. At sentencing, Huey did not oppose a sentencing enhancement for engaging in a pattern of activity involving the sexual abuse or exploitation of minors.
Under federal law, Huey must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney Kyle Winslow is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Honduran National Indicted for Illegal Re-Entry, Faces Enhanced Sentence for Prior Felony ConvictionRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced today that ALVARO LUIS ALCERRO-BANEGAS (“ALCERRO-BANEGAS”), age 37, was indicted on April 4, 2024 for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a) and Title 8, United States Code, Section 1326(b)(1).
According to the indictment, ALCERRO-BANEGAS, reentered the United States after being previously deported on September 2, 2022. If convicted, ALCERRO-BANEGAS faces up to two years imprisonment, up to a $250,000 fine, up to one year of supervised release, and a mandatory $100 special assessment fee. However, because of his prior felony conviction, ALCERRO-BANEGAS also faces a sentencing enhancement of up to 10 years imprisonment.
U.S. Attorney Duane Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
Highs Gang Member Sentenced to 19.5 Years in Prison for RICO ConspiracyRead the Press Release
MINNEAPOLIS – Montez Brown, aka “Tez Blood,” was sentenced to 235 months in prison for his criminal conduct, including attempted murder, narcotics trafficking, and possession of a machine gun, as a member of the Minneapolis Highs gang, announced United States Attorney Andrew M. Luger.
“We are addressing gang violence for what it is: organized criminal activity,” said U.S. Attorney Andrew Luger. “Minneapolis gangs have caused a staggering amount of damage to the community through retaliatory shootings, narcotics trafficking, and other illicit activity. Individuals who choose to fuel violence and destruction on behalf of a criminal enterprise such as this will be held accountable under federal law.”
According to court documents, Brown, 32, was a well-respected member and high-level fentanyl trafficker for the Highs gang, a criminal enterprise engaged in a years-long pattern of racketeering activity, including murder, robbery, and trafficking and distribution of controlled substances. Operating on the north side of Minneapolis since 2004, the Highs congregate at businesses and residences located at or near the West Broadway Avenue and Lyndale Avenue North intersection. The Highs have a stranglehold on this area and members do not hesitate to flaunt their illegal activities openly.
Prospective Highs members prove their loyalty to the gang by “putting in work,” i.e., committing acts of violence for the benefit of the gang or offering other benefits such as introducing a source for drugs or firearms. Members of the Highs are expected to “hunt” rival gang members: an express directive to locate and kill rivals. Highs members frequently take to social media to taunt rivals, glorify gang life, and post images of themselves with cash, drugs, and firearms.
To date, thirteen members and associates of the Highs have pleaded guilty and five have been sentenced in U.S. District Court by Judge Nancy E. Brasel.
- Montez Brown, aka “Tez Blood,” 32, of Minneapolis, pleaded guilty on November 6, 2023, to one count of RICO conspiracy and one count of conspiracy to distribute controlled substances. He was sentenced on April 10, 2024, to 235 months in prison followed by five years of supervised release.
- Chase Robertson, aka “Chase Loco,” 25, of St. Paul, pleaded guilty on September 11, 2023, to one count of RICO conspiracy. He was sentenced on February 22, 2024, to 75 months in prison followed by three years of supervised release.
- Douglas Mobley, aka “Nut,” 36, of St. Paul, pleaded guilty on October 11, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Christopher Finch, aka “Twin,” 23, of Minneapolis, pleaded guilty on December 12, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Tony Jelks, aka “BD,” 30, of Minneapolis, pleaded guilty on November 1, 2023, to one count of RICO conspiracy. He was sentenced on April 10, 2024, to 156 months in prison followed by five years of supervised release.
- Randy Tate, 32, of Minneapolis, pleaded guilty on December 4, 2023, to one count of RICO conspiracy. He was sentenced on April 4, 2024, to 115 months in prison followed by three years of supervised release.
- Isaac Hodge, aka “Ike,” 47, of Minneapolis, pleaded guilty on November 2, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Trevoneia Felton, aka “Tre,” 22, of St. Paul, pleaded guilty on November 9, 2023, to one count of RICO conspiracy. He was sentenced on April 3, 2024, to 82 months in prison followed by three years of supervised release.
- Malcolm Samuels, aka “Reggie,” 25, of Minneapolis, pleaded guilty on December 18, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Ronald Washington, aka Black, 37, of Minneapolis, pleaded guilty on November 21, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Dashaun Morris, aka “Mush,” 22, of Minneapolis, pleaded guilty on November 14, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Maron Bailey, aka “Boonie,” 26, of Minneapolis, pleaded guilty on October 5, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Isaiah Bell, 21, of St. Paul, pleaded guilty on December 7, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
These cases are the result of an investigation conducted by the ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, DEA, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections with assistance from the U.S. Marshals Service, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation.
Assistant U.S. Attorneys Samantha H. Bates, Justin A. Wesley, Jordan L. Sing, and Albania Concepcion for the District of Minnesota and Trial Attorney Brian W. Lynch of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the cases.
Green Bay Man Sentenced to 25 Years in Prison for Dealing Fentanyl Resulting in Death and Possessing a Firearm as a Convicted FelonRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 9, 2024, U.S. Senior District Judge William C. Griesbach sentenced a Green Bay man, Keenan J. Denruyter (age: 32), to 25 years in prison after he pled guilty to Distributing Fentanyl Resulting in Death, Possessing Fentanyl With Intent to Distribute, and Possessing a Firearm and Ammunition as a convicted felon, in violation of Title 21, United States Code, Section 841, and Title 18, United States Code, Section 922.
Court records indicate that in June and July 2023, Denruyter repeatedly distributed counterfeit Percocet® “M30” pills containing fentanyl, resulting in the overdose deaths of two Green Bay females aged 17 and 18. Denruyter was on extended supervision at the time, having been released from state prison for felony cocaine delivery. As part of an ongoing investigation, the Brown County Drug Task Force (BCDTF) made controlled buys during which Denruyter sold fentanyl pills to an informant. BCDTF arrested Denruyter, finding hundreds of additional M30 pills and a loaded pistol. BCDTF’s investigation continued, leading to evidence connecting Denruyter to the two overdose deaths.
In sentencing Denruyter, Judge Griesbach emphasized that trafficking fentanyl is distributing “poison.” The judge considered nationwide data that 7 in 10 counterfeit pills tested at Drug Enforcement Administration (DEA) Crime Labs contain a lethal dose of fentanyl, that fentanyl is the leading cause of death for 18- to 45-year-olds, and that synthetic opiates like fentanyl cause over 73,000 deaths annually in the U.S.—equal to 200 deaths per day.
“Fentanyl continues to cut a devastating swath through families and communities across the country,” said U.S. Attorney Haanstad. “Individuals who distribute this deadly poison choose to gamble with the lives of others simply to put a few extra dollars in their own pockets. I commend the hard work of the Brown County Drug Task Force and all of our federal, state, local, and tribal partners who remain committed to working together to hold individuals like Mr. Denruyter accountable for their deadly and callous actions.”
“This long federal prison sentence sends a strong message that law enforcement will not tolerate firearm violence or drug trafficking in our community,” said ATF Special Agent in Charge Christopher Amon of the Chicago Field Division. “I commend the United States Attorney for the Eastern District of Wisconsin, the DEA and the Brown County Drug Task Force for their commitment in investigating and prosecuting this important case.”
“Far too many lives have been lost across Wisconsin from fentanyl poisonings, and the DEA will continue working with our state, local and federal partners to hold drug traffickers accountable for the harm they inflict upon our communities,” said DEA Special Agent, Sheila Lyons Chicago Field Office.
Brown County Sheriff Todd J. Delain said, “The Brown County Drug Task Force is grateful for our ongoing partnership and collaboration with the United States Attorney’s Office – Eastern District of Wisconsin, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives to hold those who distribute dangerous drugs accountable for their actions. The distribution of dangerous drugs, like fentanyl, has led to an overall decay of society and all too often death of people who are addicted or using these dangerous drugs. We will continue to work hard for the people of Northeast Wisconsin by relentlessly pursuing and arresting those that present a serious threat to our community!”
According to the DEA, illicit fentanyl remains the deadliest drug threat facing this country. It is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Just two milligrams of fentanyl—the amount that fits on the tip of a pencil—is considered a potentially deadly dose. The Sinaloa Cartel and Jalisco Cartel in Mexico, using chemicals largely sourced from China, are primarily responsible for most of the fentanyl that is being trafficked in communities across the United States.
This case was investigated by the Brown County Drug Task Force, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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Green Bay Man Sentenced to 25 Years in Prison for Dealing Fentanyl Resulting in Death and Possessing a Firearm as a Convicted FelonRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 9, 2024, U.S. Senior District Judge William C. Griesbach sentenced a Green Bay man, Keenan J. Denruyter (age: 32), to 25 years in prison after he pled guilty to Distributing Fentanyl Resulting in Death, Possessing Fentanyl With Intent to Distribute, and Possessing a Firearm and Ammunition as a convicted felon, in violation of Title 21, United States Code, Section 841, and Title 18, United States Code, Section 922.
Court records indicate that in June and July 2023, Denruyter repeatedly distributed counterfeit Percocet® “M30” pills containing fentanyl, resulting in the overdose deaths of two Green Bay females aged 17 and 18. Denruyter was on extended supervision at the time, having been released from state prison for felony cocaine delivery. As part of an ongoing investigation, the Brown County Drug Task Force (BCDTF) made controlled buys during which Denruyter sold fentanyl pills to an informant. BCDTF arrested Denruyter, finding hundreds of additional M30 pills and a loaded pistol. BCDTF’s investigation continued, leading to evidence connecting Denruyter to the two overdose deaths.
In sentencing Denruyter, Judge Griesbach emphasized that trafficking fentanyl is distributing “poison.” The judge considered nationwide data that 7 in 10 counterfeit pills tested at DEA Crime Labs contain a lethal dose of fentanyl, that fentanyl is the leading cause of death for 18- to 45-year-olds, and that synthetic opiates like fentanyl cause over 73,000 deaths annually in the U.S.—equal to 200 deaths per day.
“Fentanyl continues to cut a devastating swath through families and communities across the country,” said U.S. Attorney Haanstad. “Individuals who distribute this deadly poison choose to gamble with the lives of others simply to put a few extra dollars in their own pockets. I commend the hard work of the Brown County Drug Task Force and all of our federal, state, local, and tribal partners who remain committed to working together to hold individuals like Mr. Denruyter accountable for their deadly and callous actions.”
“This long federal prison sentence sends a strong message that law enforcement will not tolerate firearm violence or drug trafficking in our community,” said ATF Special Agent in Charge Christpher Amon of the Chicago Field Division. “I commend the United States Attorney for the Eastern District of Wisconsin, the DEA and the Brown County Drug Task Force for their commitment in investigating and prosecuting this important case.”
Brown County Sheriff Todd J. Delain said, “The Brown County Drug Task Force is grateful for our ongoing partnership and collaboration with the United States Attorney’s Office – Eastern District of Wisconsin, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives to hold those who distribute dangerous drugs accountable for their actions. The distribution of dangerous drugs, like fentanyl, has led to an overall decay of society and all too often death of people who are addicted or using these dangerous drugs. We will continue to work hard for the people of Northeast Wisconsin by relentlessly pursuing and arresting those that present a serious threat to our community!”
According to the DEA, illicit fentanyl remains the deadliest drug threat facing this country. It is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Just two milligrams of fentanyl—the amount that fits on the tip of a pencil—is considered a potentially deadly dose. The Sinaloa Cartel and Jalisco Cartel in Mexico, using chemicals largely sourced from China, are primarily responsible for most of the fentanyl that is being trafficked in communities across the United States.
This case was investigated by the Brown County Drug Task Force, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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Grandview Man Sentenced to Prison for Starting Destructive Fires Causing Millions in Property DamageRead the Press Release
Yakima, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that Christopher Vaughn Schlax, age 48, of Grandview, Washington has been sentenced after pleading guilty to three counts of Damage by Fire to a Building or Personal Property Used in Interstate and Foreign Commerce. Chief United States District Judge Stanley A. Bastian imposed a sentence of 60 months imprisonment to be followed by 3 years of supervised release.
According to court documents and information presented at the sentencing hearing, Schlax was involved in a series of burglaries on June 27, 2022. A short time later, Schlax and an alleged accomplice traveled to the Lineage Logistics warehouse in Grandview, Washington. To distract first responders from the burglaries, Schlax set fire to a pallet storage area at the warehouse. The fire caused $423,654 in property damage to the warehouse and presented a significant danger to firefighters called to fight the fire.
Early in the morning of July 4, 2022, Schlax and the alleged accomplice made plans to burglarize the Dollar Tree store in Grandview. To distract from the burglary, Schlax and the alleged accomplice first drove to the fruit bin lot of River Valley Fruit. Schlax got out of the vehicle and lit a fire. The fire caused more than $1.5 million in damage to River Valley Fruit’s property.
A short time later, Schlax and the alleged accomplice attempted to carry out their plan to burglarize the Dollar Tree. Schlax used a cutting torch to cut into a safe in the office of the Dollar Tree store. As a result, Schlax started a fire inside the Dollar Tree. The arson caused more than $1.8 million in damage to the Dollar Tree building and property.
“Mr. Schlax not only committed burglaries, but then, to cover up his crimes, he started fires that endangered firefighters, law enforcement and members of the community. The fires started by Mr. Schlax also caused millions of dollars in property damage,” stated U.S. Attorney Waldref. “I am grateful for our first responders who keep our community safe. I also want to commend the excellent work of our law enforcement partners and federal prosecutors involved in this case.”
“ATF is the only U.S. Government agency with fire and arson investigation as part of its core mission,” said ATF Seattle Field Division Special Agent in Charge Jonathan Blais. “For Mr. Schlax to intentionally start fires to distract first responders from his burglaries is especially cruel. Because of the destruction and danger he caused to the community, this sentence is clearly warranted.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant United States Attorney Courtney Pratten and former AUSA Frances Walker, who indicted the case.
The alleged accomplice has been indicted on charges of Damage by Fire to a Building or Personal Property Used in Interstate and Foreign Commerce. The accomplice, who has entered a not guilty plea, was arraigned on November 14, 2022, and is currently awaiting trial. The indictment against the accomplice contains mere allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Grand jury indicts Cincinnati man who allegedly served as straw purchaser for at least 21 firearmsRead the Press Release
CINCINNATI – A grand jury has indicted a Cincinnati man with crimes related to illegal straw purchases of at least 21 firearms.
Timothy Moorman, Jr., 32, made his initial appearance in federal court in Cincinnati today. He is charged with one conspiracy count and 10 counts of making false statements on federal firearm forms.
According to the indictment, which was returned on March 12 and unsealed today, Moorman bought firearms at Cincinnati-area federal firearms licensees and then provided those firearms to co-conspirators the same day or within a few days. Those co-conspirators would then traffic the firearms outside of Ohio.
For example, it is alleged that at least nine firearms were recovered in connection with a crime in Canada less than two weeks after Moorman bought them. Two others were traced to crimes in Canada and Detroit within two months of purchase.
The charging document details that the firearms were purchased at Bass Pro Shops, Range USA – Cincy West, Range USA – Blue Ash, Target World and North College Hill Gun Store.
Moorman allegedly indicated on the required firearms forms that the firearms were for himself and no one else, despite actually acting as a straw purchaser.
Making a false statement during the purchase of a firearm is a federal crime punishable by up to 10 years in prison. The conspiracy charge carries a potential penalty of up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the charges. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Former Owner of Latitude 360 Sentenced to 30 Months in Prison for Failing to Pay over Payroll Taxes to the IRSRead the Press Release
Jacksonville, Florida – U.S. District Judge Wendy Berger has sentenced Brent Brown to 30 months in federal prison for willfully failing to pay over to the Internal Revenue Service (IRS) employment taxes that were withheld from employees’ paychecks. Brown was further ordered to pay more than $3.8 million in restitution to the IRS. Brown entered a guilty plea on January 11, 2024.
According to court documents, Brown established the initial version of the Latitude entities in June 2010 with a location in Jacksonville, doing business under the name Latitude 360. The Latitude entities operated restaurant and entertainment complexes and expanded to include locations in Indianapolis, Indiana; Pittsburgh, Pennsylvania; and Albany, New York – although this location never opened to the public. As part of its business operations, the Latitude entities withheld payroll taxes from employees in trust, which taxes were legally required to be paid over to the IRS. Instead of paying these amounts over to the IRS, for multiple years Brown instead directed the monies be paid elsewhere. Additionally, the Latitude entities – at Brown’s direction – failed to pay over to the IRS the employer’s portion of the payroll taxes. Between tax years 2013 and 2016, Brown willfully failed to pay over to the IRS more than $5.3 million in payroll taxes. During the same time period, Brown diverted hundreds of thousands of dollars from the Latitude entities to pay personal expenses – including rent on a luxury Manhattan apartment and tuition at a Manhattan preparatory school.
“With this sentencing, Brent Brown was reminded that the responsibility to pay federal taxes is a legal obligation and not a game,” said IRS–Criminal Investigation Acting Special Agent in Charge Lani I. Rosado-Espinal. “We will continue to investigate payroll tax fraud to ensure cheats are not rewarded for their actions and other law-abiding employers are not placed at a competitive disadvantage.”
This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Arnold B. Corsmeier.
Former Omaha Police Officer Sentenced for Fraud ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Johnny Palermo, 48, of Omaha, Nebraska, was sentenced on April 11, 2024, in federal court in Lincoln, Nebraska, for conspiracy to commit wire fraud. Senior United States District Judge John M. Gerrard sentenced Palermo to 24 months’ imprisonment. There is no parole in the federal system. After Palermo’s release from prison, he will begin a 3-year term of supervised release. Senior Judge Gerrard ordered Palermo to pay $65,014.67 in restitution.
From 2017 to April 1, 2023, Johnny Palermo conspired to defraud donors of the Latino Peace Officers Association (LPOA), the LPOA Board, and Police Athletics for Community Engagement (PACE) for his own personal benefit. Johnny Palermo, a former police officer with the Omaha Police Department and LPOA Board member, without having full LPOA Board authority, conducted financial transactions for his personal benefit using LPOA funds. LPOA funds were misused by Johnny Palermo for trips, meals, and gambling. Johnny Palermo also misused LPOA funds to purchase trips for friends and co-defendant Vincent Palermo. Benefits provided to Vincent Palermo paid for by LPOA were intended to influence Vincent Palermo’s actions as an Omaha City Councilman to benefit PACE and the LPOA.
FBI Omaha Special Agent in Charge Eugene Kowel said, “This former law enforcement officer violated his oath of office by using his trusted position for personal gain. Public corruption is a top criminal investigative priority for the FBI. We are committed to working with our state, local, federal, and tribal law enforcement partners to aggressively investigate, pursue, and hold accountable those who violate their oath of office to enrich themselves. The FBI encourages everyone in our community to continue to come forward and report abuses of public office.”
Co-defendants Vincent J. Palermo, 50, of Omaha, and Richard Gonzalez, 55, of Papillion, Nebraska, were sentenced on January 16, 2024, for conspiracy to commit honest services fraud. Vincent Palermo was sentenced to 18 months’ imprisonment for the conspiracy charge and a consecutive 9-month term of imprisonment for a violation of supervised release. Gonzalez was to 18 months’ imprisonment for the conspiracy charge. Vincent Palermo will serve two years of supervised release and Gonzalez will serve three years of supervised release. Both were ordered to pay restitution: $10,292.28 for Vincent Palermo; and $66,749.35 for Gonzalez.
Co-defendant Jack Olson’s trial is scheduled for June 24, 2024, before Senior Judge Gerrard in Lincoln. Olson is presumed innocent unless and until proven guilty.
This case was investigated by the Federal Bureau of Investigation.
Former Louisiana Sheriff’s Deputy Pleads Guilty to Federal Civil Rights Violation for Assaulting DetaineeRead the Press Release
A former DeSoto Parish, Louisiana, Sheriff’s Office deputy, Javarrea Pouncy, 30, pleaded guilty to depriving a detainee of his civil rights under color of law by willfully using unreasonable force against the detainee.
“Like any law enforcement officer, the defendant had a duty to protect people in his custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead of fulfilling his duty, the defendant abused his authority by beating a detainee who posed no threat to him, leaving the victim broken, bloodied and bruised. The Justice Department is committed to investigating and prosecuting officers who violate the civil and constitutional rights of those in their care.”
“This defendant was an officer of the law who took an oath to serve and protect others, but he did the exact opposite of that,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “This incident was unnecessary and a result of this defendant’s abuse of the law. We take these violations of civil rights of others very seriously and will continue to prosecute those who violate these laws in the Western District of Louisiana.”
“There is never any excuse for a man or woman who takes the oath to serve and protect to do what Pouncy did in this case,” said Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Field Office. “The FBI is committed to uncovering cowards who attempt to hide their acts of violence behind the badge. Justice is finally served in this case.”
According to court documents, on Sept. 27, 2019, Pouncy was working as a deputy at the DeSoto Parish jail when he and another deputy strip searched a detainee as part of the booking process. During the search, Pouncy and the other deputy, DeMarkes Grant, repeatedly punched the detainee, even though the detainee did not pose a threat to either officer. The officers threw approximately 50 punches at the detainee, including in the head and face. As a result of the assault, the detainee was hospitalized and diagnosed with a broken eye socket and broken nose, among other injuries.
Grant previously pleaded guilty to an obstruction offense for filing a false report about the assault, which he did knowingly and purposefully in order to prevent authorities from learning about the unreasonable use of force.
A sentencing hearing is scheduled for Aug. 7. Under the terms of his plea agreement, Pouncy faces a penalty of 30 to 37 months in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI New Orleans Field Office investigated the case.
Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Seth Reeg for the Western District of Louisiana are prosecuting the case.
Former Lame Deer pastor sentenced to 30 years in prison for sexually abusing children on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A former Lame Deer pastor, who was convicted in a jury trial of sexually abusing children on the Northern Cheyenne Indian Reservation, was sentenced today to 30 years in prison, to be followed by a lifetime of supervised release, U.S. Attorney Jesse Laslovich said.
A federal jury on Dec. 11, 2023 found the defendant, Dean Alan Smith, 67, guilty of aggravated sexual abuse, abusive sexual contact by force and two counts of abusive sexual contact by force and of a child. The jury acquitted Smith of one count of abusive sexual contact of a child.
U.S. District Judge Susan P. Watters presided.
“Pastor Smith’s prison sentence, while significant, does not come close to the lifetime of trauma his victims will have to endure. But I hope knowing that Smith will likely spend the rest of his life in federal prison gives them some peace of mind that he won’t be able to abuse others. Far too often, and unacceptably so, we are unable to obtain justice for children sexually abused in Indian Country. But justice was achieved here, and it would not have occurred without the bravery of our victims or the tenacity of our federal partners and prosecutors, for which I am grateful,” U.S. Attorney Laslovich said.
The government alleged in court documents and at trial that Smith was the pastor of a local church in Lame Deer, on the Northern Cheyenne Indian Reservation, and that during his time on the reservation, he and his wife housed several foster children and temporarily hosted other children from the community. In approximately 2021 and 2022, four girls, identified as Jane Does 1, 2, 3 and 4, disclosed being sexually abused by Smith between 2017 and 2020 when they were staying or living at Smith’s home. The government alleged that Smith abused each of them, separately and in private, on multiple occasions. All of the victims were under the age of 12 at the time.
The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.
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Former Kearney Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Susan Lehr announced that Paul J. Gray, age 49, formerly of Kearney, Nebraska, was sentenced on April 10, 2024, in federal court in Omaha, Nebraska for failing to register as a sex offender pursuant to the Sex Offender Registration and Notification Act. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Gray to 12 months’ imprisonment. Additionally, Gray was sentenced to 6 months’ imprisonment for violating his supervised release. The two sentences were ordered to run consecutively. There is no parole in the federal system. After Gray’s release from prison, he will begin a 10-year term of supervised release.
Gray, who is required to register as a sex offender as the result of a 1996 third degree sexual sssault conviction out of Lincoln County, Nebraska, as well as a federal 2008 production of child pornography conviction out of the District of Nebraska, was released from prison in 2022. After his release, he was ordered to reside at the Dismas Charities Reentry Center in Kearney. Gray registered that address with the Nebraska Sex Offender Registry.
On July 17, 2023, Gray was dismissed from Dismas Charities. After dismissal from Dismas Charities, Gray failed to update his Nebraska Sex Offender Registration and did not advise his United States Probation Officer of his whereabouts.
On September 14, 2023, Gray was located at an apartment in Kearney where he had been staying since being dismissed from Dismas Charities.
This case was investigated by the United States Marshals Service.
Former Desoto Parish Sheriff’s Deputy Pleads Guilty to Federal Civil Rights Violation for Assaulting DetaineeRead the Press Release
SHREVEPORT, La. – A former DeSoto Parish Sheriff’s Office deputy, Javarrea Pouncy, 30, pleaded guilty to depriving a detainee of his civil rights under color of law by willfully using unreasonable force against the detainee.
“Like any law enforcement officer, the defendant had a duty to protect people in his custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead of fulfilling his duty, the defendant abused his authority by beating a detainee who posed no threat to him, leaving the victim broken, bloodied and bruised. The Justice Department is committed to investigating and prosecuting officers who violate the civil and constitutional rights of those in their care.”
“This defendant was an officer of the law who took an oath to serve and protect others, but he did the exact opposite of that,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “This incident was unnecessary and a result of this defendant’s abuse of the law. We take these violations of civil rights of others very seriously and will continue to prosecute those who violate these laws in the Western District of Louisiana.”
“There is never any excuse for a man or woman who takes the oath to serve and protect to do what Pouncy did in this case,” said Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Field Office. “The FBI is committed to uncovering cowards who attempt to hide their acts of violence behind the badge. Justice is finally served in this case.”
According to court documents, on September 27, 2019, Pouncy was working as a deputy at the DeSoto Parish jail when he and another deputy strip searched a detainee as part of the booking process. During the search, Pouncy and the other deputy, DeMarkes Grant, repeatedly punched the detainee, even though the detainee did not pose a threat to either officer. The officers threw approximately 50 punches at the detainee, including in the head and face. As a result of the assault, the detainee was hospitalized and diagnosed with a broken eye socket and broken nose, among other injuries.
Grant previously pleaded guilty to an obstruction offense for filing a false report about the assault, which he did knowingly and purposefully in order to prevent authorities from learning about the unreasonable use of force.
A sentencing hearing is scheduled for August 7, 2024. Under the terms of his plea agreement, Pouncy faces a penalty of 30 to 37 months in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI New Orleans Field Office investigated the case. Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Seth Reeg for the Western District of Louisiana are prosecuting the case.
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Former Cornell Student Pleads Guilty to Posting Online Threats Against Jewish Students on CampusRead the Press Release
WASHINGTON – Patrick Dai, age 21, formerly a junior at Cornell University and originally from Pittsford, New York, pled guilty today to posting threats to kill or injure another person using interstate communications.
“This defendant is being held accountable for vile, abhorrent, antisemitic threats of violence levied against members of the Cornell University Jewish community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “In the elevated threat environment that we have seen since Oct. 7th, we have been vigilant and stand ready to hold perpetrators of hate crimes accountable. Antisemitic threats of violence are unacceptable in our society, and we will not tolerate this conduct. Particularly at institutions of higher learning, people should feel safe to pursue educational opportunities. The Justice Department takes seriously our obligation to protect students from hatred and harassment and will continue to use every tool available to ensure that students are able to feel safe and secure.”
“Patrick Dai used the internet to make horrific threats to kill and injure Jewish students attending Cornell University. The federal felony conviction he sustains today underscores that those who break the law by making violent threats will be found and prosecuted, even if they attempt to hide by posting anonymously,” said U.S. Attorney Carla Freedman for the Northern District of New York. “The rapid and coordinated investigation by the FBI, New York State Police and Cornell University Police led to Dai’s identification and arrest in a matter of days, bringing relief to both his classmates and the community he terrorized by his actions. His guilty plea today means he will be held accountable for his threats against members of his own Cornell University community.”
“Patrick Dai’s disturbingly violent threats caused widespread panic and fear throughout Cornell University’s Jewish community,” said Special Agent in Charge Craig L. Tremaroli of the FBI Albany Field Office. “I want to commend our Joint Terrorism Task Force and our outstanding partners from New York State Police and Cornell University Police Department for their swift coordination in identifying and arresting Dai. The FBI will not tolerate any individual who terrorizes our communities and will work closely with our partners at the U.S. Attorney’s Office to ensure our college campuses remain a safe space for students to continue their education free of fear and hate.”
New York State Police Superintendent Steven G. James said, “New York takes pride in its’ diversity. Mr. Dai committed a heinous bias related crime, rooted in hate that is not welcome. We will not tolerate the illegal behavior brought on by these acts. I thank the United States Attorney’s Office and our partners in law enforcement for their collaboration in obstructing these crimes.”
Chief Anthony G. Bellamy, Cornell University Police said, “We are grateful for the diligent work of our law enforcement partners involved in the investigation and legal process. The swift response and investigative efforts illustrate the commitment of Cornell Police and the Division of Public Safety to keep our community safe from threats of targeted violence. We are thankful this matter has come to a just conclusion without further impact and hope this plea and conviction provide some comfort to the affected members of our community.”
As part of his guilty plea, Dai admitted that, on Oct. 28 and 29, 2023, he posted threatening messages to the Cornell section of an online discussion forum, including posts that said “gonna shoot up 104 west” (a dining hall at Cornell University that caters predominantly to Kosher diets and is next to the Cornell Jewish Center that provides residential accommodations for students) and “gonna bomb jewish house.” In another post, Dai threatened to “stab” and “slit the throat” of any Jewish man he saw on campus, to rape and throw off a cliff any Jewish women he saw, and to behead any Jewish babies. In that same post, Dai threatened to “bring an assault rifle to campus and shoot all you pig jews.”
A sentencing hearing is scheduled for Aug. 12, 2024 in Syracuse. Dai faces a maximum penalty of five years in prison, a fine of up to $250,000, restitution to victims and a maximum of three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force, which includes the New York State Police, is investigating this case, with assistance from the FBI Albany Field Office, Cornell University Police Department and Ithaca Police Department.
Assistant U.S. Attorneys Geoffrey J. L. Brown, Stephen C. Green and Michael D. Gadarian for the Northern District of New York are prosecuting the case, with assistance from the Justice Department’s National Security Division’s Counterterrorism Section and with assistance from the Civil Rights Division’s Criminal Section.
Former Cornell Student Pleads Guilty to Posting Online Threats Against Jewish Students on CampusRead the Press Release
Patrick Dai, 21, formerly a junior at Cornell University and originally from Pittsford, New York, pleaded guilty today to posting threats to kill or injure another person using interstate communications.
“This defendant is being held accountable for vile, abhorrent, antisemitic threats of violence levied against members of the Cornell University Jewish community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “In the elevated threat environment that we have seen since Oct. 7th, we have been vigilant and stand ready to hold perpetrators of hate crimes accountable. Antisemitic threats of violence are unacceptable in our society, and we will not tolerate this conduct. Particularly at institutions of higher learning, people should feel safe to pursue educational opportunities. The Justice Department takes seriously our obligation to protect students from hatred and harassment and will continue to use every tool available to ensure that students are able to feel safe and secure.”
“Patrick Dai used the internet to make horrific threats to kill and injure Jewish students attending Cornell University. The federal felony conviction he sustains today underscores that those who break the law by making violent threats will be found and prosecuted, even if they attempt to hide by posting anonymously,” said U.S. Attorney Carla Freedman for the Northern District of New York. “The rapid and coordinated investigation by the FBI, New York State Police and Cornell University Police led to Dai’s identification and arrest in a matter of days, bringing relief to both his classmates and the community he terrorized by his actions. His guilty plea today means he will be held accountable for his threats against members of his own Cornell University community.”
"The threats Patrick Dai made towards the Jewish community are graphic and disturbing,” said Executive Assistant Director Larissa Knapp of the FBI’s National Security Branch. “Unfortunately, the FBI continues to see antisemitic sentiments across the violent extremist ideological spectrum. We work every day to make sure no one fears for their safety while simply going about their life, practicing their religion or attending class.”
As part of his guilty plea, Dai admitted that, on Oct. 28 and 29, 2023, he posted threatening messages to the Cornell section of an online discussion forum, including posts that said “gonna shoot up 104 west” (a dining hall at Cornell University that caters predominantly to Kosher diets and is next to the Cornell Jewish Center that provides residential accommodations for students) and “gonna bomb jewish house.” In another post, Dai threatened to “stab” and “slit the throat” of any Jewish man he saw on campus, to rape and throw off a cliff any Jewish women he saw, and to behead any Jewish babies. In that same post, Dai threatened to “bring an assault rifle to campus and shoot all you pig jews.”
A sentencing hearing is scheduled for Aug. 12. Dai faces a maximum penalty of five years in prison, a fine of up to $250,000, restitution to victims and a maximum of three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force, which includes the New York State Police, is investigating this case, with assistance from the FBI Albany Field Office, Cornell University Police Department and Ithaca Police Department.
Assistant U.S. Attorneys Geoffrey J. L. Brown, Stephen C. Green and Michael D. Gadarian for the Northern District of New York are prosecuting the case, with assistance from the Justice Department’s National Security Division’s Counterterrorism Section and with assistance from the Civil Rights Division’s Criminal Section.
Florida Attorney Sentenced to 8 years in Prison in Fraudulent Charitable Contribution Tax SchemeRead the Press Release
A Florida attorney was sentenced today to eight years in prison for conspiring to defraud the United States and tax evasion arising out of his promotion of an illegal tax shelter scheme involving false charitable deductions.
According to court documents and statements made in court, from at least 2013 through 2021, Michael L. Meyer, of Davie, Florida, used his skills as an attorney and certified public accountant to promote his fraudulent tax shelter called “The Ultimate Tax Plan.” Meyer and his co-conspirators, Rao Garuda and Cullen Fischel, marketed the scheme as a way for high-income clients to reduce their taxes by claiming deductions for charitable donations that Meyer knew were fraudulent. Meyer prepared boilerplate transaction paperwork for his clients that made it appear they had donated valuable property to charities Meyer controlled. In fact, the clients retained complete control and use over the donated assets. Meyer wrongfully advised clients they could legally access their donated assets for their own personal use through tax-free loans and execute an “exit strategy” to buy back their donations at a significantly discounted rate. In some instances, Meyer backdated documents so that clients could claim purported donations on their prior years’ tax returns.
Over the years, Meyer ignored a chorus of people who advised him that his plan was illegal, including the IRS. Indeed, the IRS conducted several audits of Meyer’s charities, and found that the Ultimate Tax Plan was an economic sham. Meyer signed documents acknowledging that finding, and agreeing to close the bogus charities. However, Meyer simply created new “charities” and continued to promote his illegal shelter to wealthy taxpayers.
In April 2018, the Justice Department filed a civil suit against Meyer seeking to enjoin him from continuing to promote the Ultimate Tax Plan. As part of that litigation, the Justice Department issued civil subpoenas to Meyer’s clients requesting records related to the Ultimate Tax Plan. In response, Meyer created false, backdated documents, and directed clients to submit them to the Justice Department. Meyer also provided false, backdated documents in response to document demands he directly received from the Justice Department. In April 2019, a federal district court permanently enjoined Meyer from organizing, promoting, marketing or selling the Ultimate Tax Plan.
Meyer earned more than $10 million from selling the Ultimate Tax Plan. He used that income to purchase a multi-million-dollar estate and a luxury vehicle collection that included Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley and a Ferrari.
In addition to his prison sentence, U.S. District Judge K. Michael Moore for the Southern District of Florida ordered Meyer to serve three years of supervised release. The court will determine restitution at a later date.
Rao Garuda and Cullen Fishel both pleaded guilty in the Northern District of Ohio to conspiracy to defraud the United States and are scheduled to be sentenced on April 16.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. The Tax Division thanks U.S. Attorney Markenzy Lapointe for the Southern District of Florida for his office’s assistance.
IRS Criminal Investigation investigated the case.
Assistant Chief Michael Boteler and Trial Attorneys Andrew Ascencio and Michael Jones of the Tax Division are prosecuting the case.
Note, an earlier version of the release incorrectly listed Judge Moore as serving in the U.S. District Court for the Southern District of Georgia. The release has been corrected to show that Judge Moore serves in the U.S. District Court for the Southern District of Florida.