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Monday 26 February 2024
Miami Resident Sentenced to 30 Months in Prison for Operating Investment SchemeRead the Press Release
MIAMI – On Feb. 22, Jack Connor Ridall, 29, of Miami, was sentenced to 30 months in prison, by U.S. District Judge Donald M. Middlebrooks, for operating an investment fraud scheme.
Ridall defrauded victims out of approximately $735,000, by falsely indicating he would use their money for various investments. Ridall was the founder and sole member of Stratcapital LLC, Guss Capital, LLC, and Guss Actium Manager, LLC. Using these three companies, Ridall succeeded in causing at least three people to provide him money based on his material misrepresentations. The false statements Ridall made to these victims included (a) Ridall’s investing experience and performance, (b) the use of investor funds for purposes other than those that he promised, and (c) the safety of the investment. Ridall also falsely told his victims, among other things, that his companies were investment management companies with substantial assets. Ridall did not invest investor funds in securities or in an investment fund, but instead he misappropriated investor funds to pay for luxury retail purchases, hotel stays, restaurants, and fraudulent transfers to family members. When victims asked Ridall for updates on their investments, he provided forged attorney letters and audit reports indicating that the victims' investments yielded high rates of return.
In Nov. 2023, Ridall pled guilty to one count of wire fraud.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office made the announcement.
FBI Miami investigated the case. The Securities and Exchange Commission provided invaluable assistance. Assistant U.S. Attorney Roger Cruz prosecuted the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20152.
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Memphis Man Sentenced to Nearly 23 Years in Federal Prison for Armed CarjackingRead the Press Release
Memphis, TN – A federal judge recently sentenced a Memphis man to federal prison for two carjackings that occurred in February 2022. U.S. District Court Judge John T. Fowlkes sentenced Martavious Marr, 20, to 275 months in federal prison for the crimes and ordered Marr to serve five years of supervised release upon completion of his prison term. United States Attorney Kevin G. Ritz announced the sentence today.
There is no parole in the federal system.
According to United States Attorney Ritz and information presented in court, at approximately 9:00pm on February 1, 2022, Marr approached a man at a gas station on N. Bellevue Blvd, pointed a gun at him, and demanded the keys to his 2009 Pontiac G6. The victim told Marr that the keys were already in the car. As the man turned to run inside the store, Marr shot him in the back and drove away in the victim’s car. Marr later used his social media page to sell the car for $1,225.00.
On February 13, 2022, Marr approached another man outside a bar on Poplar Avenue at approximately 3:00am. Marr pointed a gun at the victim and demanded the keys to his 2020 Dodge Journey. The victim complied and Marr drove away in the car. Marr also took the victim’s AirPods and gun, as they had been left in the car. The victim tracked the car to Marr’s place of employment and called police.
Marr was later arrested and charged with both carjackings. At the time of his arrest, Marr was carrying the second victim’s gun in his waistband.
In November 2023, Marr pled guilty to discharging a firearm during a violent crime, brandishing a firearm during a violent crime, possessing a stolen firearm, and two counts of carjacking.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Memphis Police Department.
This case is also 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.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Raney Irwin, who prosecuted this case, as well as law enforcement partners who investigated the case.
McAlester Resident Sentenced for Federal Drug CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brittany Nicole Mekler, age 31, of McAlester, Oklahoma, was sentenced to 87 months in prison for Possession with Intent to Distribute Methamphetamine.
The charges arose from investigations by the Drug Enforcement Administration, the Pittsburg County Sheriff’s Office, and the McAlester Police Department.
On July 18, 2023, Mekler pleaded guilty to one count of Possession with Intent to Distribute Methamphetamine. According to investigators, on August 27, 2022, Mekler was found in possession of 163.18 grams of methamphetamine, drug paraphernalia, and $3,774 cash.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Mekler was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Erin Cornell represented the United States.
Mayes County Resident Sentenced for Federal Firearm OffenseRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Aaron Ward, age 43, of Locust Grove, Oklahoma, was sentenced to 36 months in prison for illegally possessing a firearm and ammunition.
The charges arose from investigations by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On May 11, 2023, Ward pleaded guilty to one count of Felon in Possession of a Firearm and Ammunition. According to court documents, a Cherokee County Sheriff’s Office deputy found Ward in possession of a loaded .38 Special revolver during a traffic stop in August of 2022. The deputy located the revolver in Ward’s back pocket while conducting a pat-down. Ward knew when he possessed the firearm that he had been previously convicted of a crime punishable by a term of imprisonment exceeding one year.
The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the hearing in Muskogee. Ward was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a sentence of incarceration.
Assistant United States Attorney Rachel Geizura represented the United States.
Man Indicted for Decades-long Fraud of Veteran’s Benefits, Identity TheftRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that a federal grand jury has indicted Raymond Kenneth Musgrove, formerly of Grant County, Washington, for fraud in connection with benefits provided by the Department of Veterans Affairs (VA).
The Indictment announced today charges Musgrove, formerly of Grant County, Washington, with false representation of a social security number, wire fraud, theft of government funds, and aggravated identity theft. The Indictment alleges that Raymond Kenneth Musgrove posed as J.M.C., a real person and military veteran, for several decades, collecting Veterans Affairs Compensation Payments and receiving healthcare at the VA in the name of J.M.C. According to the Indictment, Musgrove has purported to be J.M.C. since at least 1997, in the process collecting over $825,000 in federal funds from the VA to which he was not entitled. According to the Indictment, the VA terminated benefit payments several times after the real J.M.C. passed away in 2018, but each time Musgrove reached out to the VA purporting to be J.M.C. and requested that benefits should continue. The Indictment alleges that due to Musgrove’s misrepresentations, the VA continued to provide Veterans Affairs Compensation Payments in the name of J.M.C.
“Military Veterans have given selfless service to this country. Schemes to steal funds set aside to support them are an insult to their sacrifices,” said United States Attorney Waldref. “My office is committed to working closely with our law enforcement partners to ensure that federal government programs and missions are protected from fraudulent actions and will hold fraudsters accountable when they seek government funds in order to line their own pockets.”
The fraud charges carry sentences of up to 20 years in federal prison as well as restitution for fraudulently obtained funds. This case was investigated by SSA-OIG and VA-OIG. This case is being prosecuted by Assistant United States Attorney Frieda K. Zimmerman.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Case No: 2:24-CR-00016-SAB
Lutcher Man Sentenced to Twenty-Four Months Imprisonment for Drug Distribution ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – On February 21, 2024, TROY MALBROUGH, age 48, a resident of Lutcher, La., was sentenced to 24-months imprisonment by U.S. District Judge Jane Triche Milazzo after previously pleading guilty to conspiracy to distribute and possess with the intent to distribute a quantity of fentanyl, a quantity of heroin, and a quantity of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(C), and 846.
According to court documents, the Drug Enforcement Administration began a drug-trafficking investigation into MALBROUGH's organization in 2019. MALBROUGH conspired with others to distribute heroin, fentanyl, and methamphetamine in the Eastern District of Louisiana. He also purchased and distributed these same drugs within the district. In 2018, MALBROUGH distributed fentanyl to an individual who later died after ingesting that fentanyl.
After serving his term of imprisonment, MALBROUGH will be supervised by U.S. Probation for 3 years. MALBROUGH must also pay a mandatory special assessment fee of $100.00.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Brittany Reed of the Public Integrity Unit.
Lockport man previously convicted of endangering the welfare of a child charged with possession of child pornographyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Damon Singleton-Spencer, 31, of Lockport, NY, was arrested and charged by criminal complaint with possession of child pornography, which carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that in September 2023, the New York State Police received a report that an individual had uploaded 184 files of suspected child pornography to a cloud storage application. Subsequent investigation traced the uploaded files to Singleton-Spencer, who was previously convicted in 2017 of Endangering the Welfare of a Child. On February 16, 2024, a search warrant was executed at Singleton-Spencer’s Lockport residence. During the search, investigators seized multiple devices including computers, hard drives, and cell phones. A preliminary review of one cell phone recovered multiple images and videos of child pornography.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Eugene Staniszewski, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lincoln Man Sentenced to 5 Years for Possession of Drugs and FirearmRead the Press Release
United States Attorney Susan Lehr announced that Perrion Bluford, 23, of Lincoln, Nebraska, was sentenced on February 23, 2024, in federal court in Lincoln, Nebraska following his conviction for possession of marijuana with the intent to distribute, and possession of a firearm by an unlawful user of controlled substances. Senior United States District Court Judge John M. Gerrard sentenced Bluford to 5 years’ imprisonment. There is no parole in the federal system. After Bluford is released from prison, he will begin a 3-year term of supervised release. Bluford pleaded guilty to both offenses on July 27, 2023.
Police learned that Bluford was distributing illegal drugs and using social media accounts to advertise the sale of drugs. Police obtained a search warrant for Bluford’s apartment and searched his apartment on January 13, 2021. In Bluford’s bedroom, police located 79 suspected MDMA pills, 3.2 pounds of suspected marijuana, and other suspected prescription medications. Police also found a Masterpiece Arms 5.7 by 288 mm pistol, which was loaded with 20 rounds of ammunition. Additionally, police located other items consistent with the distribution of illegal drugs, and $8,015 in United States currency.
A sampling of the seized drugs was sent to the Nebraska State Patrol Crime Laboratory. The first submitted sample tested negative for the presence of controlled substances. A second sample was then submitted for testing. Some of the suspected marijuana was confirmed to be marijuana. Had the cases proceeded to trial, a drug investigator would have explained that those involved in drug dealing sometimes sell counterfeit or fake drugs to unsuspecting customers.
On a separate occasion, police were conducting surveillance of Bluford on November 2, 2022. They saw him leaving a barber shop with another person when the police attempted to contact Bluford. Bluford ran from police. During the foot pursuit, Bluford discarded a handgun, as well as a loaded magazine for the handgun. Shortly thereafter, Bluford was apprehended. The police searched Bluford and found seven grams of marijuana in his pocket. Those drugs were also sent to the Nebraska State Patrol Crime Laboratory and were confirmed to be marijuana.
The investigation was conducted by the Lincoln Police Department and the Federal Bureau of 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.
Lauderdale County Man Sentenced to over 3 Years in Federal Prison for Making Threats of Violence over the InternetRead the Press Release
Jackson, Miss. – A Lauderdale County man was sentenced to 41 months in federal prison for making threats of violence over the internet.
According to court documents and statements made in court, in May and July 2020, Christian Blake Bunyard, 21, utilized Snapchat to threaten a school shooting, to kill and rape African Americans in Oxford, Mississippi, and to rape another Snapchat user if she did not provide nude photos.
Bunyard was named in an indictment returned by a federal grand jury in November 2020. He entered a guilty plea in April 2021 to making threats in interstate commerce and making an interstate transmission of an extortionate communication.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Acting Special Agent in Charge Maher Dimachkie of the Federal Bureau of Investigation made the announcement.
This case was investigated by the Federal Bureau of Investigation and the Lauderdale County Sheriff’s Department.
Assistant U.S. Attorney Kimberly T. Purdie prosecuted the case.
Keenesburg Man Charged in Two Colorado Bank RobberiesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that John Michael Kirby, 56, has been charged by federal complaint in connection with bank robberies in Brighton, Colorado.
According to allegations in the criminal complaint, in the month of February 2024, Kirby robbed two banks in Brighton.
The Defendant had his initial appearance before United States Magistrate Judge Kathryn A. Starnella on February 26.
The case is being investigated by the FBI Rocky Mountain Safe Streets Task Force, and the Denver Police Department. Assistant United States Attorney Brian Dunn is handling the prosecution.
The charges in the complaint are allegations and the Defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Case Number: 1:24-mj-00032-KAS
Kanawha County Man Pleads Guilty to Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Jerry Dewayne Carroll, 42, of Crown Hill, pleaded guilty today to possession of prepubescent child pornography.
According to court documents and statements made in court, on or about April 10, 2023, Carroll possessed at least 82 videos depicting minors engaged in sexually explicit conduct. Carroll admitted that he uploaded the digital media files over the internet using his cell phone or a computer, and kept them in his encrypted cloud storage account held by Mega LTD. Carroll further admitted that the digital media files included videos depicting minors engaged in actual or simulated sexual intercourse and oral sex and the lascivious exhibition of the genitals and pubic areas of prepubescent minors.
Carroll is scheduled to be sentenced on June 18, 2024, and faces a penalty of 20 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine. Carroll must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Holly Wilson and Josh Hanks are prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-122.
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Jury Convicts Oswego County Man of Receiving, Distributing and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Austin Tennant, age 29, of Phoenix, New York, was convicted on Friday, after a four-day jury trial, on four counts of Distribution of Child Pornography, three counts of Receipt of Child Pornography, and one count of Possession of Child Pornography. The charges relate to Tennant’s distribution of child pornography he downloaded from the Internet as well as child pornography he received directly from child victims he chatted with online.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The evidence at trial established that, between September 2022 and January 2023, Tennant obtained from the Internet and directly from child victims hundreds of videos and thousands of images of child pornography. The evidence further established that Tennant later redistributed that same child pornography to others, including to other children in an effort to induce them to provide him with sexually explicit images and videos of themselves.
Sentencing is scheduled for June 24, 2024, in Syracuse, before Chief United States District Judge Brenda K. Sannes. For each of his convictions on Receipt and Distribution of Child Pornography, Tennant faces a term of imprisonment between five and twenty years, and a maximum term of imprisonment of twenty years on his conviction for Possession of Child Pornography. Tennant also faces a fine of up to $250,000, mandatory restitution to the victims, and a term of supervised release between five years and life. Tennant will also be required to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case was investigated by HSI Syracuse with assistance from the Oswego County Sheriff’s Office. Assistant U.S. Attorney Adrian LaRochelle and Special Assistant U.S. Attorney Paul Tuck prosecuted the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s 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 https://www.justice.gov/psc.
Illegal Alien from Honduras Sentenced for Possession of AmmunitionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that FRANKLYN ORELLANO-VELASQUEZ, a/k/a “Rony Aguilera,” “Rochy Gutierrez,” age 19, a native of Honduras, was sentenced on February 21, 2024 by U.S. District Judge Sarah Vance for possession of ammunition by an illegal alien, in violation of Title 18, United States Code, Section 922(g)(5)(A).
According to court documents, on September 6, 2023, OERLLANO-VELASQUEZ was arrested for possessing 40 live .223 caliber rounds. Judge Vance sentenced ORELLANO-VELASQUEZ to 17 months in prison and payment of a $100 mandatory special assessment fee. ORELLANO-VELASQUEZ will be deported following the completion of his sentence.
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.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and the Kenner Police Department in investigating this matter. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit is in charge of the prosecution.
Hughes County Resident Sentenced for Federal Firearm OffenseRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kent Matthew Stapp, age 34, of Wetumka, Oklahoma, was sentenced was sentenced to 60 months in prison for illegally possessing a firearm.
The charges arose from investigations by the Okmulgee County Sheriff’s Office, the Muscogee (Creek) Nation Lighthorse Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On March 13, 2023, a federal jury found Stapp guilty at trial of one count of Felon in Possession of a Firearm. According to court documents, on February 11, 2022, Okmulgee County Sheriff’s deputies discovered Stapp in possession of a 9mm semi-automatic pistol after Stapp attempted to flee during a traffic stop. At trial, Stapp testified that he attempted to flee in order to prevent the discovery of the firearm on his person. The jury found that Stapp knew he had been previously convicted of a crime punishable by a term of imprisonment exceeding one year while he was in possession of the firearm.
The Honorable Ronald A. White, Chief Judge of the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Stapp was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a sentence of incarceration.
Assistant United States Attorneys Rachel Geizura and Jarrod Leaman represented the United States at sentencing.
Honduran National Sentenced to Prison for Illegally Reentering the U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHRISTIAN JAVIER AMAYA-AGUILAR, 27, a citizen of Honduras last residing in Danbury, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 14 months of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, Amaya-Aguilar illegally entered the U.S. in 2013. He settled in Connecticut and, in 2016, was arrested by Danbury Police for first-degree sexual assault. He pleaded guilty to the offense, received a sentence of five years of incarceration and 10 years of special parole, and was deported to Honduras in July 2021.
Amaya-Aguilar illegally reentered the U.S. and, on July 2, 2023, was arrested by Danbury Police for breach of peace and assault offenses. He has been detained since his state arrest.
On November 27, 2023, Amaya-Aguilar pleaded guilty in federal court to illegal reentry.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Sean P. Mahard.
Honduran National Indicted for Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – ALLAN ENRIQUE GOMEZ VILLEDA age 41, a native of Honduras, was indicted on February 23, 2024, for illegal re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, GOMEZ VILLEDA reentered the United States illegally after being previously deported on May 9, 2019. If convicted, GOMEZ VILLEDA faces a sentence of up to 2 years imprisonment, up to 1 year of supervised release, up to a $ 250,000 fine, and a $100 mandatory special assessment fee.
U.S. Attorney 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 United States Immigration and Customs Enforcement, Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – JONATHAN JOSE CASTILLO-JANEZ, age 24, was indicted on February 23, 2024 for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, JONATHAN JOSE CASTILLO-JANEZ, (“CASTILLO-JANEZ”) reentered the United States after being previously deported on June 14, 2017. If convicted, CASTILLO-JANEZ faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee. He faces a sentencing enhancement of up to 10 years imprisonment, because of a prior felony conviction.
U.S. Attorney 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 Orleans Parish Sherif’s Office in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Henryetta Resident Sentenced to Thirty-Five Years for Aggravated Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Sean Paul Baker, age 31, of Henryetta, Oklahoma, was sentenced to thirty-five years imprisonment, followed by a lifetime of supervised release, after being found guilty by a federal jury of two counts of Aggravated Sexual Abuse in Indian Country and one count of Sexual Abuse of a Minor in Indian Country.
During the trial, the United States presented evidence that beginning in February of 2015 and continuing until December of 2021, Sean Paul Baker engaged in sexual acts with a minor victim, who had not reached 10 years of age. The crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation, within the Eastern District of Oklahoma.
The guilty verdicts were the result of an investigation by the Muscogee Creek Nation Lighthorse Police Department and the Federal Bureau of Investigation.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Baker was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Caila M. Cleary and Nicole Paladino represented the United States.
Halifax Man Sentenced to Seven Years for Fentanyl and Gun PossessionRead the Press Release
RALEIGH, N.C. – Elijah Tyler Thorne, 25, of Halifax County was sentenced to 87 months in prison for possession with the intent to distribute fentanyl and possessing a firearm as a convicted felon after complaints of drug activity led to an investigation that uncovered drugs and illegal guns in Thorne’s residence. Thorne pled guilty to the charges on October 26, 2023.
“Thorne’s illicit fentanyl operation will no longer be a thorn in the side of Halifax County. This case is just one example of our strong partnership with local law enforcement to make our communities safer by getting fentanyl and illegal guns off of our streets,” said U.S. Attorney Michael Easley.
“This successful prosecution represents the ongoing commitment of our local, state, and federal partners to identify the most dangerous and prolific offenders in Halifax County,” said Halifax County Sheriff Tyree Davis. “It is crucial for us to concentrate our resources on those individuals who cause our community the greatest harm. We appreciate our law enforcement partners and look forward to our continued work together.”
According to court records and other evidence presented in court, numerous complaints of drug activity led to an investigation into Thorne. A search warrant executed on his residence recovered marijuana, fentanyl, flualprazolam pills (a Schedule I Controlled Substance), eutylone (a synthetic cathinone similar to MDMA), and MDMA pills. Thorne was also found to be in possession of a handgun and a 50-round drum magazine. Thorne has previous felony convictions for robbery and drug possession, making it illegal for him to possess a firearm.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Halifax County Sheriff’s Office investigated the case and Assistant U.S. Attorney Phil Aubart prosecuted the cases.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-87-BO.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Four TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to 18 months in federal prison.
Juan De Leon-Santiago, age 42, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a September 13, 2023, guilty plea to one count of illegal reentry into the United States after having been deported.
In a plea agreement, De Leon-Santiago admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. De Leon-Santiago was previously deported in November 2009, December 2015, September 2016, and May 2017. On June 20, 2023, immigration officials learned De Leon-Santiago had illegally returned to the United States and found De Leon-Santiago at the Linn County Jail following his arrest on state assault charges. On August 11, 2023, the defendant was convicted in Linn County, Iowa, of Domestic Abuse Assault (Strangulation), a felony. De Leon-Santiago was also previously convicted in the United States District Court for the Western District of Texas of Illegal Entry into the United States, a misdemeanor, in November 2015, and Illegal Reentry into the United States, a felony, in February 2017.
In the plea agreement, De Leon-Santiago also admitted he knowingly used a fraudulent Social Security card and a fraudulent Permanent Resident Card (a/k/a “Green Card”) to prove his authorization to work in the United States when he completed employment and tax forms in February 2023 and May 2023 at two different businesses in Cedar Rapids, Iowa. Illegal aliens are not authorized to work in the United States. The number on the Social Security card was unassigned. The number on the number on the Permanent Resident Card was assigned to a male from Vietnam.
De Leon-Santiago was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. De Leon-Santiago was sentenced to 18 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
De Leon-Santiago is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-47.
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Gore Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Andrew Jake Craig, age 35, of Gore, Oklahoma, was sentenced to 60 months of probation for possessing a firearm after a domestic violence conviction.
The charges arose from investigations by the Muskogee Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On March 10, 2023, Craig pleaded guilty to one count of Possession of a Firearm After Conviction of a Misdemeanor Crime of Domestic Violence. According to court documents, on June 7, 2022, Muskogee police officers responded to a report of a disturbance at an area residence. During the investigation, officers discovered Craig in possession of a loaded .22 semi-automatic handgun. In 2018, Craig pleaded guilty and was sentenced by an Oklahoma district court on one count of misdemeanor domestic violence.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings.
Assistant United States Attorney Benjamin D. Traster represented the United States.
Georgia Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Lawrenceville, Georgia man pleaded guilty to possession with intent to distribute 251.5 grams of methamphetamine.
According to court documents, on May 15, 2023, Martin Louis Williams was pulled over by law enforcement in a traffic stop on Interstate 10 in Hancock County. A subsequent search of the vehicle yielded 1000 pills stamped with a “Facebook” logo. The pills were sent to the DEA lab and confirmed to be 251.5 grams of methamphetamine at 5% purity, mixed with caffeine. Williams was interviewed and admitted that he was taking the pills to Georgia to be sold.
Williams pleaded guilty to possession with intent to distribute a controlled substance. He is scheduled to be sentenced on May 29, 2024, and faces up to twenty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Acting Special Agent in Charge Mike Arnett of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the Hancock County Sheriff’s Office.
Assistant U.S. Attorney Erica Rose is prosecuting the case.
Gaithersburg Woman Sentenced to 12 Years in Federal Prison for Fraud Related to a Debt Elimination SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Mary Ann Mendoza, a/k/a “Mary Ann Manuel,” “Trinity,” “M3,” and “Emily James,” age 51, of Gaithersburg, Maryland, to 12 years in federal prison, followed by three years of supervised release, for federal charges of wire fraud and conspiracy to commit wire fraud and mail fraud related to a debt elimination and wealth management fraud scheme. Judge Chuang imposed the sentence on Friday, February 23, 2024, and ordered Mendoza to pay a forfeiture money judgment of $981,293.07 and pay restitution of $3,281,109.38. A federal jury convicted Mendoza and co-defendant Willie Lamont Hicks, a/k/a “Will Woodward” and “CW,” age 52, of Kansas City, Missouri, on October 4, 2023.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Edwin S. Bonano of the Southeastern Region - Federal Housing Finance Agency - Office of Inspector General; Special Agent in Charge Javan Wilson of the U.S. Department of the Treasury - Office of Inspector General; Montgomery County State’s Attorney John McCarthy; and Chief Marcus Jones of the Montgomery County Police Department.
According to the evidence presented at the seven-day trial, from August 2011 to at least September 2017, Mendoza and Hicks, who represented themselves as partners and as husband and wife, held in-person trainings purporting to educate victim-debtors on how to discharge consumer debt, including mortgage debt, credit card debt, and automobile financing debt. Mendoza and Hicks also marketed wealth management services to victims, including purporting to set up a family office and to fund business opportunities.
As detailed in trial testimony, during the debt elimination classes, Mendoza and Hicks, who claimed to be an attorney, told victims that on the back of their social security cards and birth certificates, there was a number that unlocked access to a special bank account with funds owed to the victims by the U.S. government. The defendants also told the victim-debtors that they could create or use “trusts” to fulfill the wealth management or debt elimination services, or to obtain return on investment.
The evidence proved that Mendoza, Hicks, and their associates offered to facilitate the discharge of the debt held by the victims or perform other purported services for a fee, such as a percentage of the victim-debtors’ outstanding debt. The defendants accepted payment in the form of cash, wire transfers, personal and cashier’s checks, and the use of the victim-debtors’ credit. Victim-debtors also paid the defendants through the liquidation of their retirement savings, the leasing of apartments, and the purchase of vehicles and office equipment and supplies. In 2017, Mendoza and Hicks caused one victim to transfer almost $100,000 from the victim’s bank account to the accounts of fraudulent corporate entities controlled by the defendants. Trial testimony showed that victim-debtors were induced into providing the defendants with over one million dollars in cash and other forms of payment during the period of the conspiracy.
According to the evidence also presented at trial, Mendoza and Hicks used the victims’ personal identifying information without the victims’ knowledge or permission and provided the victims with fraudulent documents, including Internal Revenue Service forms, memorandums of agreement, intake forms, and other materials that the defendants claimed were necessary for discharging debt. The evidence showed that Hicks, Mendoza, and their associates mailed the fraudulent paperwork to the victim-debtors’ creditors, lenders, and the Internal Revenue Service purporting to effectuate the discharge of the victim’s debts.
As a result of Mendoza’s and Hicks’ scheme, victims suffered substantial financial harm, including foreclosure and eviction, homelessness, depletion of their retirement savings, significant downgrading of their credit scores, bankruptcy, and hundreds of thousands of dollars in fees and penalties owed to the IRS as a result of the fraudulent paperwork mailings.
On February 15, 2024, Judge Chuang sentenced Hicks to 22 years in federal prison and ordered him to pay a forfeiture money judgment of $1,649,897.33 and pay restitution of $3,281,109.38.
United States Attorney Erek L. Barron commended the Federal Housing Finance Agency - Office of Inspector General, the U.S. Department of the Treasury - Office of Inspector General, the Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked the United States Marshals, the Hinesville, Georgia Police Department, the Gwinnett County, Georgia Police Department, the Queen Anne’s County Sheriff’s Office, and the United States Attorney’s Offices of Western District of North Carolina, Northern District of Georgia, Eastern District of Texas, New Jersey, and the Eastern District of Pennsylvania for their assistance. Mr. Barron thanked Assistant U.S. Attorney Coreen Mao, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Four Co-Conspirators Sentenced to Federal Prison for Distributing Fentanyl and Methamphetamine in the Magic ValleyRead the Press Release
BOISE – Four members of a drug trafficking conspiracy were recently sentenced to federal prison for distributing large quantities of fentanyl and methamphetamine in Idaho, U.S. Attorney Josh Hurwit announced today.
According to court records, beginning in March 2023, Idaho State Police detectives working in coordination with the Drug Enforcement Administration (DEA), learned about a drug trafficking organization that was distributing large quantities of fentanyl and methamphetamine in the Magic Valley. Using an undercover officer, detectives infiltrated the organization and began receiving drugs in exchange for cash payments. On April 27, 2023, Jamie Lee Coltrin, 35, of Rupert, met with an undercover officer at a gas station parking lot in Heyburn. Coltrin gave the officer 1,000 fentanyl pills in exchange for $4,500 that the officer agreed to deposit in a co-conspirator’s bank account. Then, on May 24, 2023, the undercover officer met with Jenika Ann Johnson, 30, of Pocatello, and again received 1,000 fentanyl pills in exchange for $4,000.
As the investigation continued, the detectives were able to identify additional members of the organization. On June 12, 2023, detectives observed Tina Jane Morris, 45, of Pocatello, meet with a co-conspirator at a gas station parking lot in Jerome and complete a drug transaction. Police later stopped Morris’ vehicle as she traveled east on I-86 near Power County. A search of her vehicle revealed 11,216 fentanyl pills, two pounds of methamphetamine, and a 9mm handgun. The investigation revealed that Morris had just returned from the Mexico border where she obtained these drugs before bringing them to Idaho.
An additional drug transaction was planned for July 6, 2023, with Daniel Ross Coltrin, 39, of Paul, Idaho. Coltrin was stopped by police prior to the transaction and was found in possession of $5,600 that he planned to use to purchase 1,250 fentanyl pills. Coltrin intended to distribute these pills into the community.
On February 20, 2024, U.S. District Judge Amanda K. Brailsford sentenced Tina Morris to 97 months in federal prison and Jamie Coltrin to 48 months in prison. The following day, Judge Brailsford sentenced Jenika Johnson and Daniel Coltrin to 48 months and 25 months in prison respectively. All four sentences are to be followed by three years of supervised release.
“These prosecutions reflect that the people of Idaho will not tolerate drug traffickers bringing their poisons into our communities,” said U.S. Attorney Hurwit. “The backbone of our counter-drugs program is the partnership at the federal, state, and local level, and this holds true in the Magic Valley, where our teamwork is making a difference.”
“DEA and our partners will work tirelessly to stop drug traffickers from flooding our communities with drugs and violence,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The sentences in this case highlight the serious threat fentanyl and methamphetamine traffickers pose as well as our commitment to stop them.”
“Law enforcement agencies across jurisdictions are joining forces to combat the proliferation of illicit drugs within our communities,” said Idaho State Police Lieutenant Colonel Sheldon Kelley. “Through unwavering collaboration, we will work tirelessly to dismantle the networks responsible for distributing drugs throughout Idaho. By disrupting these operations, we not only uphold the law but also prioritize the safety and well-being of our citizens, ensuring our streets remain free from the harmful influence of drugs.”
U.S. Attorney Hurwit commended the cooperative efforts of the Idaho State Police, the Drug Enforcement Administration, the Minidoka County Sheriff’s Office and the Cassia County Sheriff’s Office as part of the Mini-Cassia Drug Task Force, the Twin Falls Police Department Special Investigations Unit, the Jerome County Prosecuting Attorney’s Office, and the Pocatello Police Department, for their work on these cases. Assistant U.S. Attorneys Christopher Booker and Francis Zebari prosecuted these cases.
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.
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Former St. Albans Auxiliary Police Officer Sentenced to 11 Years in Prison for Child Pornography CrimesRead the Press Release
CHARLESTON, W.Va. – Billy J. Griffith, 58, of St. Albans, was sentenced today to 11 years in prison, to be followed by 10 years of supervised release, for receipt of child pornography and possession of prepubescent child pornography. Griffith must also register as a sex offender.
A federal jury found Griffith guilty on June 15, 2023, following a two-day trial. Evidence at trial showed that on August 24, 2022, law enforcement officers executed a search warrant at Griffith’s Baier Street residence. Officers obtained the search warrant for Griffith’s residence after tracing an Internet Protocol (IP) address that had been used to download multiple digital media files of child pornography. Griffith was an auxiliary officer with the St. Albans Police Department at the time of the search, and had been for approximately seven years. Griffith was also an exterminator, and his wife operated a child daycare at the residence.
Officers seized numerous electronic devices during the search of Griffith’s residence, including an external hard drive, a desktop computer, a laptop computer, and a cell phone. Griffith told officers that the electronic devices were his and that he had sole access to the computers and cell phone through password protections. An analysis found digital media files of child pornography on all four electronic devices, totaling 3,383 images and four video files.
United States Attorney Will Thompson and Assistant United States Attorneys Julie M. White, Andrew J. Tessman and J. Parker Bazzle II prosecuted the case.
“I am proud to work with all our law enforcement partners. I helped try this case personally because Mr. Griffith betrayed his position of trust in the community with criminal conduct that involved the degradation of prepubescent minors,” Thompson said. “I commend the Federal Bureau of Investigation (FBI) and our other law enforcement partners who investigated this case and analyzed the evidence.”
“Today’s sentence should serve as a reminder to all predators. We will not allow crimes against children to go unpunished,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The FBI and our partners will continue to find, arrest, and prosecute those who seek to exploit our most vulnerable population, no matter who they are or what their profession is."
United States District Judge Joseph R. Goodwin imposed the sentence.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-218.
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Former Couple Sentenced to Prison Terms for Illegally Trafficking over 80 Firearms from Georgia and Texas to the DMVRead the Press Release
WASHINGTON – Gregory Bournes Jr., 31, of Lancaster, Va., and Dream Jackson, 30, of Riverdale, Ga., were sentenced today in connection with trafficking more than 80 firearms into the Washington, D.C., metropolitan area, announced U.S. Attorney Matthew M. Graves and Special Agent in Charge Craig Kailimai, of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Bournes and Jackson each pleaded guilty on October 5, 2023, in the U.S. District Court for the District of Columbia, to one count of conspiracy to commit an offense against the United States. They were sentenced by the Honorable Royce C. Lamberth. Based on the applicable federal sentencing guidelines, Judge Lamberth sentenced Bournes to 30 months in prison and Jackson to 27 months in prison. Following their prison terms, Bournes and Jackson will each serve three years of supervised release.
According to court papers, from February 2021 through February 2022, Bournes and Jackson—who were in a romantic relationship at the time—conspired to purchase firearms from licensed dealers in the States of Georgia and Texas and to transport and transfer the firearms to the District of Columbia and elsewhere, for the purpose of unlawfully reselling the firearms for profit. In total, Bournes and Jackson purchased more than 80 pistols, which they then sold to others. As part of their guilty pleas, Bournes and Jackson each admitted that they knew or had to reason to believe that their conduct would result in prohibited persons receiving firearms.
In March 2023, following their indictment by a federal grand jury, Bournes and Jackson were arrested in Georgia—where they both resided at the time—pursuant to warrants issued by the U.S. District Court for the District of Columbia. They have remained in custody since the time of their guilty pleas.
Most of the firearms trafficked by Bournes and Jackson remain unaccounted for, and law enforcement in the Washington, D.C., metropolitan area continue to recover the trafficked firearms in connection with criminal activity. To date, 34 firearms have been recovered by law enforcement. Several of those firearms had been used in furtherance of criminal activity, including an armed carjacking in the District of Columbia and an attempted murder in Prince George’s County.
The case was investigated by the ATF with valuable assistance from the ATF’s Washington Field Office. The case was prosecuted by Assistant U.S. Attorney Paul V. Courtney and former Special Assistant U.S. Attorney Christine A. Pattison, with valuable assistance from Assistant U.S. Attorney Thomas G. Strong.
Former Chicago Police Officer Sentenced to a Year in Prison for Civil Rights ViolationRead the Press Release
CHICAGO — A former Chicago Police Officer has been sentenced to a year in prison on a federal civil rights charge for sexually assaulting an individual while on duty.
JAMES SAJDAK, 65, of Chicago, pleaded guilty last year to one count of deprivation of civil rights, a misdemeanor offense punishable by up to one year in federal prison. U.S. District Judge John J. Tharp, Jr. imposed the sentence Friday during a hearing in federal court in Chicago.
Sajdak admitted in a plea agreement that he sexually assaulted the victim on March 5, 2019. Sajdak, driving a marked squad car and wearing a police uniform while on duty, approached the victim on a street in Chicago’s West Garfield Park neighborhood. Sajdak said words to the effect of, “You can get in the front seat or you can get in the back,” by which he meant that the victim should get in the car or else be arrested. After the victim complied with his demand and got in the front seat of the squad car, Sajdak drove to an abandoned lot in a secluded area and forced the victim to engage in a sex act for Sajdak’s gratification, the plea agreement states.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.
“Defendant abused the power and responsibility with which he had been entrusted,” Assistant U.S. Attorneys Alexandra Morgan and Erika L. Csicsila argued in the government’s sentencing memorandum. In addressing the need for a statutory maximum term of imprisonment, which the Court ultimately imposed, the government also argued, “Defendant’s misconduct diminishes the public’s trust in law enforcement and the criminal justice system as a whole.”
Florida Tax Preparer Sentenced for False Return ConspiracyRead the Press Release
A Florida tax return preparer was sentenced today to two years in prison for conspiring to defraud the United States by preparing and filing false tax returns for clients.
According to court documents and statements made in court, from 2017 through 2020, Phedson Dore and his co-conspirator ran Empire Tax Services and filed hundreds of false returns each year. Dore typically inflated federal income tax withholdings and reported fictitious itemized deductions to generate refunds for clients to which they were not entitled. To conceal his participation in the fraud, Dore did not always list on the returns his name as the person who prepared them or include Empire’s Electronic Filing Number (EFIN). Instead, he used his employees’ names and the EFINS of other return preparation businesses. Dore and his co-conspirator caused a loss to the IRS of approximately $970,000.
In addition to the term of imprisonment, U.S. District Judge Roy B. Dalton Jr. ordered Dore to serve two years of supervised release and to pay approximately $970,976.00 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Marissa Brodney of the Tax Division and Assistant U.S. Attorneys Courtney Richardson-Jones and Shannon Laurie for the Middle District of Florida prosecuted the case.
Florida Tax Preparer Sentenced for False Return ConspiracyRead the Press Release
A Florida tax return preparer was sentenced today to two years in prison for conspiring to defraud the United States by preparing and filing false tax returns for clients.
According to court documents and statements made in court, from 2017 through 2020, Phedson Dore and his co-conspirator ran Empire Tax Services and filed hundreds of false returns each year. Dore typically inflated federal income tax withholdings and reported fictitious itemized deductions to generate refunds for clients to which they were not entitled. To conceal his participation in the fraud, Dore did not always list on the returns his name as the person who prepared them or include Empire’s Electronic Filing Number (EFIN). Instead, he used his employees’ names and the EFINS of other return preparation businesses. Dore and his co-conspirator caused a loss to the IRS of approximately $970,000.
In addition to the term of imprisonment, U.S. District Judge Roy B. Dalton Jr. ordered Dore to serve two years of supervised release and to pay approximately $970,976.00 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Marissa Brodney of the Tax Division and Assistant U.S. Attorneys Courtney Richardson-Jones and Shannon Laurie for the Middle District of Florida prosecuted the case.
Family Dollar Stores LLC Pleads Guilty to Holding Consumer Products under Insanitary Conditions, Agrees to Pay $41.675 Million in Connection with Rodent-Infested WarehouseRead the Press Release
Family Dollar Stores LLC pleaded guilty today to holding food, drugs, medical devices, and cosmetics under insanitary conditions, related to a rodent infestation at the company’s West Memphis, Arkansas, distribution center.
A criminal information unsealed today in federal court in Little Rock, Arkansas, charged Family Dollar with one misdemeanor count of causing FDA-regulated products to become adulterated while being held under insanitary conditions. The company, a subsidiary of Dollar Tree Inc., entered into a plea agreement that includes a sentence of a fine and forfeiture amount totaling $41.675 million, the largest-ever monetary criminal penalty in a food safety case. The plea agreement also requires Family Dollar and Dollar Tree to meet robust corporate compliance and reporting requirements for the next three years. U.S. Magistrate Judge Jerome T. Kearney presided over the company’s guilty plea and sentencing at today’s hearing.
“When consumers go to the store, they have the right to expect that the food and drugs on the shelves have been kept in clean, uncontaminated conditions,” said Acting Associate Attorney General Benjamin C. Mizer. “When companies violate that trust and the laws designed to keep consumers safe, the public should rest assured: The Justice Department will hold those companies accountable.”
“Companies distributing and selling food, drugs, medical devices, and cosmetics must ensure that these products are being held in safe and sanitary conditions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with the FDA to investigate and prosecute those who put public health at risk by failing to meet this important obligation.”
“Consumers trust that products purchased from retail stores such as Family Dollar are safe,” said U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas. “It is incomprehensible that Family Dollar knew about the rodent and pest issues at its distribution center in Arkansas but continued to ship products that were unsafe and insanitary. Knowingly selling these types of products not only places the public’s health at risk but erodes the trust consumers have in the products they purchase. Products shipped and sold are required to be safe for consumers and the safety of Arkansans and others are extremely important to this office. Let me be clear, if you conduct business in Arkansas and allow the shipment or sale of unsafe and insanitary products, you will be held accountable.”
“U.S. consumers rely on the FDA to ensure that their food is safe and wholesome,” said Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Kansas City Field Office. “When companies put themselves above the law and distribute food that has been held under extremely insanitary conditions, putting the public’s health at risk, we will see that they are brought to justice.”
In pleading guilty, the company admitted that its Arkansas distribution center shipped FDA-regulated products to more than 400 Family Dollar stores in Alabama, Missouri, Mississippi, Louisiana, Arkansas, and Tennessee. According to the plea agreement, the company began receiving reports in August 2020 of mouse and pest issues with deliveries to stores. By the end of 2020, certain stores reported receiving rodents and rodent-damaged products from the warehouse. The company admitted that by no later than January 2021, some of its employees were aware that the insanitary conditions caused FDA-regulated products held at the warehouse to become adulterated in violation of the Federal Food, Drug and Cosmetic Act (FDCA).
According to the plea agreement, the company continued to ship FDA-regulated products from the warehouse until January 2022, when an FDA inspection revealed live rodents, dead and decaying rodents, rodent feces, urine, and odors, and evidence of gnawing and nesting throughout the facility. According to the plea agreement, subsequent fumigation of the facility resulted in the reported extermination of 1,270 rodents. On Feb. 18, 2022, the company voluntarily recalled all drugs, medical devices, cosmetics, and human and animal food products sold since Jan. 1, 2021 in the 404 stores that had been serviced by the warehouse.
FDA-OCI Special Agents Chad Medaris and Daniel Allgeyer investigated the case.
Senior Litigation Counsel Patrick Runkle and Trial Attorney Alisha Crovetto of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Julie Peters and Cameron McCree for the Eastern District of Arkansas prosecuted the case.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Family Dollar Stores LLC Pleads Guilty to Holding Consumer Products under Insanitary Conditions, Agrees to Pay $41.675 Million in Connection with Rodent-Infested WarehouseRead the Press Release
Family Dollar Stores LLC pleaded guilty today to holding food, drugs, medical devices, and cosmetics under insanitary conditions, related to a rodent infestation at the company’s West Memphis, Arkansas, distribution center.
A criminal information unsealed today in federal court in Little Rock, Arkansas, charged Family Dollar with one misdemeanor count of causing FDA-regulated products to become adulterated while being held under insanitary conditions. The company, a subsidiary of Dollar Tree Inc., entered into a plea agreement that includes a sentence of a fine and forfeiture amount totaling $41.675 million, the largest-ever monetary criminal penalty in a food safety case. The plea agreement also requires Family Dollar and Dollar Tree to meet robust corporate compliance and reporting requirements for the next three years. U.S. Magistrate Judge Jerome T. Kearney presided over the company’s guilty plea and sentencing at today’s hearing.
“When consumers go to the store, they have the right to expect that the food and drugs on the shelves have been kept in clean, uncontaminated conditions,” said Acting Associate Attorney General Benjamin C. Mizer. “When companies violate that trust and the laws designed to keep consumers safe, the public should rest assured: The Justice Department will hold those companies accountable.”
“Companies distributing and selling food, drugs, medical devices, and cosmetics must ensure that these products are being held in safe and sanitary conditions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with the FDA to investigate and prosecute those who put public health at risk by failing to meet this important obligation.”
“Consumers trust that products purchased from retail stores such as Family Dollar are safe,” said U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas. “It is incomprehensible that Family Dollar knew about the rodent and pest issues at its distribution center in Arkansas but continued to ship products that were unsafe and insanitary. Knowingly selling these types of products not only places the public’s health at risk but erodes the trust consumers have in the products they purchase. Products shipped and sold are required to be safe for consumers and the safety of Arkansans and others are extremely important to this office. Let me be clear, if you conduct business in Arkansas and allow the shipment or sale of unsafe and insanitary products, you will be held accountable.”
“U.S. consumers rely on the FDA to ensure that their food is safe and wholesome,” said Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Kansas City Field Office. “When companies put themselves above the law and distribute food that has been held under extremely insanitary conditions, putting the public’s health at risk, we will see that they are brought to justice.”
In pleading guilty, the company admitted that its Arkansas distribution center shipped FDA-regulated products to more than 400 Family Dollar stores in Alabama, Missouri, Mississippi, Louisiana, Arkansas, and Tennessee. According to the plea agreement, the company began receiving reports in August 2020 of mouse and pest issues with deliveries to stores. By the end of 2020, certain stores reported receiving rodents and rodent-damaged products from the warehouse. The company admitted that by no later than January 2021, some of its employees were aware that the insanitary conditions caused FDA-regulated products held at the warehouse to become adulterated in violation of the Federal Food, Drug and Cosmetic Act (FDCA).
According to the plea agreement, the company continued to ship FDA-regulated products from the warehouse until January 2022, when an FDA inspection revealed live rodents, dead and decaying rodents, rodent feces, urine, and odors, and evidence of gnawing and nesting throughout the facility. According to the plea agreement, subsequent fumigation of the facility resulted in the reported extermination of 1,270 rodents. On Feb. 18, 2022, the company voluntarily recalled all drugs, medical devices, cosmetics, and human and animal food products sold since Jan. 1, 2021 in the 404 stores that had been serviced by the warehouse.
The FDA-OCI investigated the case.
Senior Litigation Counsel Patrick Runkle and Trial Attorney Alisha Crovetto of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Julie Peters and Cameron McCree for the Eastern District of Arkansas prosecuted the case.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Evansville man sentenced for willfully injuring government propertyRead the Press Release
Stephen Clifford Swingle, age 45, of Evansville, Wyoming, was sentenced to six years’ probation for willfully injuring government property. U.S. District Court Judge Alan B. Johnson imposed the sentence on Feb. 20 and ordered the defendant to pay $5,839.50 in restitution.
Swingle pled guilty to the charges on Nov. 16, 2023. According to court documents, starting in August 2022, campground fee tubes at the Muddy Mountain Environmental Education Area in Natrona County were broken into four times resulting in the theft of camping fees and significant property damage. The Bureau of Land Management (BLM) placed game cameras in the area and captured multiple images of Swingle and his truck in the area around the time of the break-ins. When interviewed by investigators, Swingle admitted to breaking into and stealing the fee tubes.
This crime was investigated by the BLM and prosecuted by Assistant U.S. Attorney Christyne Martens.
Case No. 23-CR-00094
Evansville Felon Charged with Possession of a Ghost Gun and Dozens of “Glock Switches” Made Using a 3D PrinterRead the Press Release
EVANSVILLE- A federal grand jury has returned an indictment charging Marquel D. Payne, 39, of Evansville, with one count of possession of a firearm as a convicted felon and one count of possession of a machinegun.
According to the criminal complaint, on January 31, 2024, Evansville Police Department officers observed Payne in possession of a 3D printer while conducting surveillance near his residence. Investigators had received information that Payne was manufacturing machine gun parts using a 3D printer before the surveillance began.
Investigators obtained search warrants for Payne’s residence and other locations he controlled. During the searches, investigators found approximately 60 plastic machine gun conversion devices, a 9mm personally made handgun, also known as a “ghost gun” due to its lack of any traceable serial numbering, an AR-15 rifle, a 3D printer, plastic printing filament, a 3D printed firearm silencer, and 9mm caliber ammunition.
Machinegun conversion devices sometimes called “Glock switches” or “auto-sears” are devices that convert ordinary semiautomatic firearms into fully automatic machineguns. Machinegun conversion devices are themselves considered machineguns under federal law, even when not installed, and are illegal for individuals to produce, possess, or sell. The hand grip of the 9mm ghost gun was allegedly produced by Payne using a 3D printer. Other parts of the ghost gun were produced in Pennsylvania.
At the time of his arrest, Payne had been previously convicted of numerous felonies, including escape, carrying a handgun without a license, and criminal recklessness while armed with a deadly weapon. These prior felony convictions prohibit Payne from ever again legally possessing a firearm.
“Getting illegal machinegun conversion devices off our streets is a critical public safety priority. Fully automatic weapons and untraceable ‘ghost guns’ pose a serious danger to our communities, especially when they are in the hands of people who have no lawful business possessing any firearm,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “This prosecution is the result of quick and impactful investigative work by our outstanding partners at the Evansville-Vanderburgh Crime Gun Intelligence Center. Together we are committed to saving lives and reducing gun violence by combining intelligence and resources to investigate and prosecute dangerous offenders.”
“Unfortunately, these deadly conversion devices continue to show up in our communities,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “U.S. law has long recognized that automatic weapons pose a special risk to public safety, both through the sheer volume of bullets fired and the likelihood that innocent bystanders will be injured or killed. Combine that with an untraceable firearm and an unregistered silencer in the hands of a convicted felon, and it is clear that this individual is solely interested in feeding violence in southern Indiana. ATF will continue to work with our law enforcement partners to hold accountable those who use and distribute machine gun conversion devices.”
“My office applied for and was awarded a $700,000 federal grant to form the crime gun intelligence center where our mission is clear: to work with our state and federal partners to combat the rising crime in Vanderburgh County. We are now seeing the fruits of our labor,” said Prosecutor Diana Moers. “My office and our state and federal partners will stop at nothing to identify and prosecute any who seek to commit violent crimes in our community - this case is a result of teamwork and, with our agencies working together, we expect more cases like this: we are ahead of criminal activity and not simply reacting. Anyone planning to break the law in Vanderburgh County should swiftly reconsider.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Evansville Crime Gun Intelligence Center (CGIC), the Evansville Police Department, and Vanderburgh County Sheriff’s Office investigated this case. If convicted, Payne faces up to 15 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Myers thanked Assistant United States Attorney Todd S. Shellenbarger, who is prosecuting this case.
In October 2023, the Vanderburgh County Prosecutor’s Office, Sheriff’s Office, and Evansville Police Department secured a nearly $700,000 federal grant to establish a Crime Gun Intelligence Center. The goal of the Evansville-Vanderburgh Crime Gun Intelligence Center is to quickly identify and reduce the amount of gun crime in the Evansville-Vanderburgh County area by providing intelligence, analysis, and resources between agencies for the swift identification and apprehension of suspected armed criminals.
The Department of Justice’s National Ghost Gun Initiative was launched in February 2022 in response to the proliferation of ghost guns in our communities, and the growing number of criminals who unlawfully use or possess these untraceable weapons. The Attorney General directed U.S. Attorney’s Offices to train a national cadre of prosecutors as experts to lead investigations and prosecutions of crimes involving ghost guns. These ghost gun coordinators will also share investigation and prosecution tools with other prosecutors and law enforcement officers. As part of the initiative, the U.S. Attorney’s Office for the Southern District of Indiana will focus its investigation and prosecution resources on combatting the illegal possession and use of ghost guns.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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District Man Sentenced to 37 Months in Prison for Federal Firearms OffenseRead the Press Release
WASHINGTON – Maurice Devonte Beckham, 22, of Washington, D.C., was sentenced today to 37 months in prison for illegally possessing a loaded firearm in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Beckham pleaded guilty on November 20, 2023, in the U.S. District Court for the District of Columbia, to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. He was sentenced by the Honorable Reggie B. Walton. Following his prison term, Beckham will serve three years of supervised release.
According to court documents, shortly after 2 a.m. on January 30, 2023, MPD officers were on patrol in the 1100 block of Raum St. Northeast when they observed Beckham walk quickly toward a running Honda CR-V and enter its driver’s seat. The officers recognized Beckham from prior interactions and knew him to have outstanding arrest warrants.
An officer approached the Honda—which was later determined to have been stolen—and Beckham accelerated, nearly striking the officer, and crashed into an occupied, marked police cruiser and a citizen’s parked vehicle. Officers opened the driver’s door and removed Beckham. Beckham attempted to flee on foot. Officers apprehended Beckham and placed him in handcuffs. They then observed in plain view on the driver’s seat floorboard—the same area from which they had just removed Beckham—a semi-automatic firearm. The recovered weapon was a Micro Draco 7.62x39mm caliber firearm, with one round in the chamber and 20 rounds in its 30-round capacity magazine.
Beckham has remained in custody since his arrest.
At the time of the offense, Beckham was on probation in the Superior Court of the District of Columbia for unauthorized use of a vehicle, failure to appear in court, and other charges. As a result of his arrest in this case, Superior Court judge Heidi Pasichow revoked Beckham’s probation on June 23, 2023, and sentenced him to a 15-month prison term. The 37-month sentence imposed today will run consecutively to the Superior Court sentence, for a total term of 52 months’ imprisonment.
Federal law prohibits Beckham from possessing a firearm because of his prior conviction for unauthorized use of a vehicle, which is a crime punishable by imprisonment for a term exceeding one year.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of the officers of the Metropolitan Police Department. Valuable assistance was provided by the FBI’s Washington Field Office.
The case was investigated and prosecuted by Assistant U.S. Attorney Paul V. Courtney.
Des Moines Man—Owner of Wicked Imagery—Arrested on Federal Complaint for Sexual Exploitation of a Child and Possession of Child Pornography; Investigators Request Public’s AssistanceRead the Press Release
DES MOINES, Iowa – A Des Moines man was arrested on Wednesday, February 21, 2024, and made his initial appearance before a United States Magistrate Judge in the United States District Court for the Southern District of Iowa. Jeffrey Walter Gray, 61, is charged in a criminal complaint filed in the Southern District of Iowa with Sexual Exploitation of a Child (and Attempted Sexual Exploitation of a Child) and Possession of Child Pornography.
According to the allegations in the unsealed complaint, Gray, from as early as approximately 2005 to at least approximately 2016, used minors to produce child sexual abuse material. Some of this material was allegedly created at the photography business Gray owned and operated in the Des Moines area—Wicked Imagery. The material included images from hidden cameras placed in the changing rooms at Wicked Imagery to capture videos and/or images of minor children undressing. In November 2023, investigators recovered from Gray’s residence a hard drive which was later determined to contain child sexual abuse material.
To date, investigators have identified approximately fifteen minor victims depicted in child sexual abuse material seized from Gray’s residence. Investigators request the public’s assistance in identifying other minors. If you believe that you or your minor children may have been victimized by Gray, or if you have information relevant to this investigation, please visit www.fbi.gov/JeffreyGray.WickedImagery or email [email protected].
This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation is investigating the case with the assistance of the Des Moines Police Department.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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 https://www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colombian National Pleads Guilty for Illegal Re-EntryRead the Press Release
NEW ORLEANS – JEAN PAUL SABOGAL-ANGARITA, age 27, plead guilty on February 21, 2024 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to court document, JEAN PAUL SABOGAL-ANGARITA (“SABOGAL-ANGARITA”) is a citizen of Columbia and has no legal right to be in the United States. On February 18, 2023, SABOGAL-ANGARITA was arrested by Tangipahoa Parish law enforcement officials in Tickfaw, Louisiana for allegedly being involved in a group stealing cell phones during Mardi Gras in New Orleans. SABOGAL-ANGARITA was arrested by federal authorities on June 21, 2023 for the illegal re-entry offense. Research of federal government databases revealed that SABOGAL-ANGARITA had been previously removed from Miami, Florida on September 21, 2016, pursuant to a removal order. He knowingly reentered the U.S. after being removed and was found to be present in the Eastern District of Louisiana without the permission of either the Attorney General of the United States or the Secretary of Homeland Security.
SABOGAL-ANGARITA faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Chautauqua County man charged with attempted production of child pornographyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Jose Perez, 39, of Celeron, NY, was arrested and charged by criminal complaint with attempted production of child pornography and possession of child pornography, which carry a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that on September 3, 2022, Homeland Security Investigations received a tip from the National Center for Missing and Exploited Children that Perez uploaded a file a suspected child pornography. On December 15, 2022, HSI executed a federal search warrant at Perez’s residence, seizing computers, a cellular telephone, and electronic storage devices, including a thumb drive, which contained two video files that appeared to be taken from a videocam located in Perez’s bathroom. One of the files included video of a naked minor victim who does not appear to be aware that the camera is present. In addition, the thumb drive contained 17,839 image files that appeared to be taken from the same bathroom videocam and included naked images of the minor victim. Images and videos of child pornography were also found on Perez’s cell phone.
The complaint is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Clyde Anderson Jr., 44, of Charleston, pleaded guilty today to possession with intent to distribute fentanyl and methamphetamine.
According to court documents and statements made in court, on September 12, 2022, law enforcement officers encountered Anderson while responding to a domestic disturbance complaint at a Renaissance Circle apartment in Charleston. Anderson admitted that he consented to a search of a small bag he was carrying. Officers found a cylinder in the bag containing approximately 9 grams of a substance containing fentanyl and 13 grams of methamphetamine. Anderson admitted that he intended to distribute the controlled substances. Anderson further admitted that he also possessed a Taurus model PT738 .380-caliber pistol that he handed over to the officers.
Anderson is scheduled to be sentenced on June 10, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Troy D. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-120.
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Canyon Lake Tax Preparer Sentenced for Submitting False Tax ReturnsRead the Press Release
EL PASO, Texas – A Canyon Lake woman was sentenced in a federal court in El Paso to 24 months in prison for aiding and assisting in the preparation of a false tax return.
According to court documents, Dawn Marie Munoz, 54, operated a tax preparation business, filing IRS forms for an organization and several of its members. In preparing and submitting joint IRS Form 1040 individual income tax returns for her clients, Munoz materially underreported her clients’ income paid as stipends from the organization.
Munoz was arrested April 12, 2022 and pleaded guilty May 10, 2023 to one count of a 16-count indictment. In addition to her imprisonment, Munoz was also ordered to pay $227,197.65 to four victims.
“Munoz was an experienced tax preparer who engaged in fraudulent business practices and took advantage of the longtime clients who trusted her,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This investigation by our law enforcement partners at FBI El Paso and IRS Criminal Investigation, along with the punishment delivered by the judge, shows that anyone who tries to undermine our tax system risks prosecution with serious penalties.”
“The defendant took advantage of her position to personally enrich herself at the expense of the citizens of El Paso,” said Special Agent in Charge John Morales for the FBI El Paso Divison. “The public can be rest assured the defendant was held accountable for the crimes she committed. The FBI thank our partners at IRS Criminal Investigation for assisting in the investigation to stop Munoz from stealing from hard working employees for her own greed.”
“Munoz lied and stole from her clients in ways that should make everyone question and double check every aspect of their tax returns this year. She prepared fraudulent returns for clients, convinced them to write checks to pay money to the IRS that they didn’t owe, stole the money, and filed false returns herself to cover her tracks,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. “This level of deceit, on the part of Munoz, may likely reverberate far beyond West Texas.”
The FBI and IRS CI investigated the case.
Assistant U.S. Attorney Mallory Rasmussen prosecuted the case.
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California Man Pleads Guilty to Role in International Money Laundering ConspiracyRead the Press Release
BOSTON – A California man pleaded guilty today to his involvement in a sophisticated international money laundering and drug trafficking organization.
Qinliang Chen, 34, of Rosemead, Calif., pleaded guilty to conspiracy to commit money laundering. U.S. District Judge Angel Kelley scheduled sentencing for July 9, 2024.
In May 2023, Chen was among 12 individuals from Massachusetts, Rhode Island, New York and California charged in a superseding indictment for their alleged involvement in a sophisticated international money laundering and drug trafficking organization allegedly led by Jin Hua Zhang.
According to the charging documents, Zhang’s organization was first detected in 2021 in the greater Boston area, throughout the United States and overseas. It was determined that for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than a year, Zhang and his organization allegedly laundered at least $25 million worth of drug proceeds and funds from other illegal businesses. Funds were allegedly traced and seized from the Zhang organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations.
Chen served as a courier for the Zhang organization. In August and September 2022, Chen was sent to deliver $125,000 and $161,000 in cash, respectively, on behalf of the organization to a cooperating witness at a meeting location in Altamonte Springs, Fla. Chen had previously been stopped at Orlando International Airport trying to bring more than $99,000 in cash through a security checkpoint.
Zhang pleaded guilty in September 2023 and is scheduled to be sentenced in May 2024.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. 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 and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of the Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bayside State Prison Corrections Officer Admits Violating Inmates’ Civil RightsRead the Press Release
NEWARK, N.J. – A former corrections officer at Bayside State Prison in Leesburg, New Jersey, today admitted to depriving two inmates of their civil rights by failing to intervene when the inmates were being assaulted and suffered bodily injury, U.S. Attorney Philip R. Sellinger announced.
Joshua Hand, 34, of Millville, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with depriving two inmates of their right not to be subjected to cruel and unusual punishment.
According to documents filed in this case and statements made in court:
In December 2019, while working as a corrections officer, Hand was inside the officers’ quarters within the kitchen area of Bayside State Prison when the first victim was summoned to that room. Shortly after that victim entered the officer’s quarters, the exit door was blocked and in the presence of Hand, the victim was assaulted simultaneously by several inmates and taken down to the floor. Hand watched and did not attempt to intervene when multiple inmates pinned and restrained the victim on the floor while other inmates delivered multiple punches and other blows to the victim’s torso, arms, and legs. Hand did not report this assault to his supervisors or medical personnel despite knowing that he was required to do so.
Later that day, a second victim was in the officers’ quarters at the prison with Hand and another corrections officer. Without provocation, the other corrections officer struck the second victim in the legs multiple times with a broomstick. During the assault of second victim, Hand remained within arm’s reach of the assault and had a reasonable opportunity to intervene but did not attempt to do so. Once again, Hand did not report this assault to his supervisors or medical personnel.
Violating the civil rights of others carries a maximum sentence of 10 years in prison and a maximum potential fine of the greater of $250,000, twice the gross amount of pecuniary gain that any person derived from the offense, or twice the gross amount of pecuniary loss that any person suffered from the offense, whichever is greatest. Sentencing is scheduled for July 2, 2024.
U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation. He also thanked the New Jersey Department of Corrections, under the direction of Commissioner Victoria Kuhn, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division in Newark.
hand.information.pdfBakersfield Man Sentenced to 10 Years in Prison for Distributing Fentanyl that Caused Overdose DeathRead the Press Release
FRESNO, Calif. — Marcus Randall, 40, of Bakersfield, was sentenced today to 10 years in prison for distributing fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 16, 2020, Randall knowingly distributed 10 “blues” (fentanyl pills) to K.T. in Bakersfield. Randall knew that the pills he distributed to K.T. contained fentanyl. K.T. suffered a fatal fentanyl overdose on Dec. 17, 2020. Law enforcement later searched Randall’s residence under a warrant and found a fentanyl pill and about $5,500 in cash. His phone records revealed a history of dealing drugs, including fentanyl pills, both to K.T. and other unidentified people, including after K.T.’s overdose death.
This case was the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the U.S. Secret Service, the Bakersfield Police Department, the Kern County Probation Department, and the California Highway Patrol. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Arizona Man Sentenced to Federal Prison for Transporting MethamphetamineRead the Press Release
A man who possessed methamphetamine with the intent to distribute it was sentenced today to more than 10 years in federal prison.
John Trinidad Qualls, age 43, from Tucson, Arizona, received the prison term after a September 22, 2023 guilty plea to possession with intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
In a plea agreement, Qualls admitted that, on December 31, 2022, in Floyd County, Iowa, deputies with the sheriff’s office stopped him for speeding. Qualls was driving 33 miles per hour over the speed limit. Qualls handed the deputies a pouch that contained his license, insurance, and registration. There was marijuana residue inside the pouch, and both the pouch and documents smelled of marijuana. Qualls admitted that he had used marijuana earlier that day. Deputies searched the car and found 1,200 grams of methamphetamine.
Qualls was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Qualls was sentenced to 121 months’ imprisonment and must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Qualls is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Devra T. Hake and investigated by the Floyd County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2021. Follow us on Twitter @USAO_NDIA.
Saturday 24 February 2024
South Carolina Man Found Guilty of Hate Crime for Killing a Transgender Woman Because of Her Gender IdentityRead the Press Release
After a four-day trial in a federal hate crime case, a jury found a South Carolina man, Daqua Lameek Ritter, guilty of all charges in the indictment, which included one hate crime count, one federal firearms count, and one obstruction count, all arising out of the murder of Dime Doe, a transgender woman.
“Acts of violence against LGBTQI+ people, including transgender women of color like Dime Doe, are on the rise and have no place in our society,” said Acting Associate Attorney General Benjamin C. Mizer. “The Justice Department takes seriously all bias-motivated acts of violence and will not hesitate to hold accountable those who commit them. No one should have to live in fear of deadly violence because of who they are.”
“A unanimous jury has found the defendant guilty for the heinous and tragic murder of Dime Doe, a Black transgender woman,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The jury’s verdict sends a clear message: Black trans lives matter, bias-motivated violence will not be tolerated, and perpetrators of hate crimes will be prosecuted to the fullest extent of the law. This case is historic; this defendant is the first to be found guilty by trial verdict for a hate crime motivated by gender identity under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. We want the Black trans community to know that you are seen and heard, that we stand with the LGBTQI+ community, and that we will use every tool available to seek justice for victims and their families.”
“Years of collaborative work were validated by a jury’s unanimous verdict: guilty. This sends a message of hope to our community that we will fight for the rights of those targeted for their gender identity or sexual orientation. As Dime Doe’s loved ones remember her, we hope this verdict provides them some comfort,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Our office will continue to work with the FBI to increase education on federal hate crime statues and how we can, and will, prosecute crimes motivated by bias in South Carolina.”
“Justice has prevailed in this case,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “This guilty verdict underscores the importance of upholding the rights and dignity of all individuals. This outcome will never completely erase the pain Doe’s family faces, but it is our hope that it brings a measure of closure to this tragic and heinous crime.”
Evidence presented at trial showed that Ritter was upset that rumors about his sexual relationship with Dime Doe were out in the community. On Aug. 4, 2019, the defendant lured Doe to a remote area in Allendale, South Carolina, and shot her three times in the head. At trial, the government proved beyond a reasonable doubt that Ritter murdered Doe because of her gender identity. Ritter then burned the clothes he was wearing during the crime, disposed of the murder weapon, and repeatedly lied to law enforcement.
Ritter* faces a maximum penalty of life in prison. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Columbia Field Office investigated the case, with the assistance of the South Carolina Law Enforcement Division, Allendale County Sheriff’s Office, and Allendale Police Department.
Assistant U.S. Attorneys Brook Andrews, Ben Garner, and Elle Klein for the District of South Carolina and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section are prosecuting the case.
This was the first trial under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for violence against a transgender person. The Shepard-Byrd Act is a landmark federal statute passed in 2009 which allows federal criminal prosecution of hate crimes motivated by the victim’s actual or perceived sexual orientation or gender identity.
Additional information about the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act is available here.
* This has been corrected to reflect the correct name of the defendant.
Friday 23 February 2024
Virginia Beach Man Sentenced to Seven Years for Credit Union Fraud and Counterfeit CurrencyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to seven years in prison for his role in a fraudulent scheme to defraud Navy Federal Credit Union and for passing counterfeit currency at Wal-Mart stores.
According to court documents, between April and July 2018, Malcolm McKinney, 32, engaged in an identity theft scheme to defraud the Navy Federal Credit Union (NFCU). McKinney provided stolen identities to a co-conspirator who would use the identities to create accounts at NFCU and apply for wholly fictitious auto loans. Once the loans were approved, other conspirators would collect the loan check, cash it, and distribute the money to members of the conspiracy. In this manner, the conspiracy caused over $300,000 in loss to NFCU.
After pleading guilty to his role in the NFCU conspiracy, and while released on bond awaiting sentencing, McKinney embarked on a counterfeit currency spree in the spring of 2023. McKinney passed approximately $25,000 in counterfeit U.S. currency to at least 10 different Wal-Mart stores located in Virginia, North Carolina, and South Carolina. McKinney used counterfeit fifty- and twenty-dollar bills to purchase items such as video game consoles, kitchen mixers, sewing machines, and breast pumps. McKinney was identified by Wal-Mart security camera footage and arrested in the Western District of Virginia.
Four co-conspirators from this case previously pleaded guilty and received sentences ranging from 45 to 81 months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-78.
Undocumented Venezuelan Man Charged with Possessing Fake Green CardRead the Press Release
ATHENS, Ga. – An undocumented man residing in Athens—who is the brother of the suspect charged with murdering a woman on University of Georgia’s campus—was charged tonight by federal criminal complaint with possessing a fraudulent green card and is currently being held in state custody.
Diego Ibarra, 28, of Venezuela, is charged by criminal complaint with possession of a fraudulent document. Ibarra’s initial appearance has not yet been scheduled. If convicted, Ibarra faces a maximum of ten years in prison. Diego Ibarra is the brother of Jose Antonio Ibarra, 26, of Venezuela, who is facing state charges for malice murder, felony murder, aggravated battery, aggravated assault, false imprisonment, kidnapping, hindering a 911 call and concealing the death of another in the death of Laken Hope Riley.
According to the criminal complaint and sworn affidavit, Homeland Security Investigations (HSI) was made aware of Ibarra’s undocumented presence in the United States on Feb. 23, 2024. An Athens-Clarke County Police Department (ACCPD) officer approached Ibarra earlier today because he matched the description of a suspect in the homicide investigation. Ibarra presented the officer with a U.S. permanent resident card (also called a green card) as identification. The card was determined to be fraudulent. Ibarra is a citizen of Venezuela and was processed for expedited removal but claimed a credible fear of return to Venezuela. He was consequently released from immigration custody pending adjudication of his claim for asylum on April 30, 2023.
According to the criminal complaint and sworn affidavit, since entering the country, Ibarra has been arrested three times by Athens law enforcement: on or about Sept. 25, 2023, Ibarra was arrested by ACCPD for driving under the influence of alcohol and driving without a license; on or about Oct. 27, 2023, Ibarra was arrested by ACCPD for theft by shoplifting; and on or about Dec. 8, 2023, Ibarra was arrested by ACCPD for failure to appear for a fingerprintable offense.
The case is being investigated by Homeland Security Investigations (HSI) with critical assistance from FBI, GBI, Athens-Clarke County Police Department, University of Georgia Police Department and Clarke County Sheriff’s Office.
Assistant U.S. Attorney Mike Morrison is prosecuting the case.
A complaint is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
U.S. Attorney's Office Hosts Fraud and Abuse Prevention Seminars for SeniorsRead the Press Release
BOSTON – This week, the United States Attorney’s Office partnered with the Winchester and Waltham Police Departments to host financial fraud awareness seminars for older adults at the Winchester Senior Community Center and the Waltham Council on Aging.
The seminars provided education and awareness to local seniors about financial fraud and featured a number of presentations from seasoned professionals, including Acting United States Attorney Joshua S. Levy; Deputy U.S. Attorney Mary Murrane; and the U.S. Attorney’s Office’s Elder Justice Coordinator, with assistance from members of the Internal Revenue Service and United States Postal Service. Topics covered included common scams directed at older adults; ways to avoid being victimized; what to do if victimized; and available local, state and federal resources. This week’s events were in support of the Department of Justice’s ongoing commitment to fighting for justice for older adults and stopping elder abuse and financial fraud by actively promoting public awareness.
According to the FBI’s Internet Crime Complaint Center 2022 report, victims over 60 experienced an 84% increase in loss from 2021. The total loss reported was over $3 billion, including nearly 5,500 victims who lost over $100,000. Millions of older Americans fall prey to various financial scams, including tech support schemes; romance scams; and sweepstakes scams just to name a few. Perpetrators establish trust through online, phone, or mail communication, as well as indirectly through TV and radio. The financial exploitation of older adults often leads to a diminished quality of life through the potential loss of independence, declined health and psychological or emotional distress caused by the victimization.
“Protecting seniors from abuse and exploitation is one of my top priorities. Outreach activities like this are essential to raise awareness and educate communities about potential threats, how to report them, steps people can take to protect themselves from being victimized and available resources,” said Acting U.S. Attorney Levy. “Scams targeting seniors are not just about the money lost – they also rob victims of their dignity and self-confidence. Our office would much rather prevent criminal conduct than prosecute it. Nonetheless we are committed to continue our will strong track record of prosecuting individuals who prey on vulnerable members of our communities.”
“Preventing the perpetration of fraud against our elderly community is a top priority of IRS CI,” said Harry Chavis, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Boston. “This week’s seminars mark a key milestone in our efforts to educate the community and provide them with the tools they need to identify fraud schemes before they are victimized. We appreciate the opportunity to partner with our local, state, and federal law enforcement partners for this awareness seminar and we will continue that collaboration as we investigate financial fraud schemes that prey on our most vulnerable populations.”
“The U.S. Postal Inspection Service is committed to protecting one of our nation’s most vulnerable populations, our senior citizens. We know that many elderly Americans are specifically targeted by scammers who aim to steal pensions and life savings through deceptive and manipulative tactics. The U.S. Postal Inspection Service takes every opportunity to conduct public outreach and educate seniors on the various ways they can safeguard themselves from becoming a scammer’s next target. We are proud to partner with our federal and local law enforcement partners on the topic of elder fraud and abuse prevention to continue this important work of protecting American seniors” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division.
“Protecting our seniors is one of our highest priorities and something we take very seriously. Bringing awareness to these scams is essential to reducing victimization. One way we accomplish this is through partnerships. We are pleased to partner with the U.S. Attorney’s Office and look forward to future collaborations that will enhance the lives and safety of all Waltham residents” said Waltham Police Chief Daniel O’Connell.
“Since 2020, the Winchester Police Department has seen a rise in “grandchildren in need” scams, IRS fraud claims, contracting scams and fraudulent “government official” phone scams. It is through educational programs like this, that we can help prevent and protect our vulnerable residents from theft,” said Sergeant Michael DeRosa, Community Resource Officer of the Winchester Police Department.
To learn more about common elder fraud schemes and ways to protect yourself, please visit: https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/elder-fraud. You can also visit https://www.justice.gov/file/1172351/download to learn more about warning signs of elder abuse and reporting resources in Massachusetts. For more information and resources from the Department of Justice's Elder Justice Initiative, please visit https://www.justice.gov/elderjustice.
If you need assistance or to report elder abuse, please contact your local adult protective services agency through the Eldercare Locator or by call the helpline at 1-800-677-1116 Monday – Friday 9am – 8pm EST. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10am – 6pm EST.
U.S. Attorney's Office Hosts Fourth Community Event as Part of DOJ's United Against Hate InitiativeRead the Press Release
PHOENIX, Ariz. – The United States Attorney’s Office for the District of Arizona held its fourth United Against Hate event on Wednesday at the Valley of the Sun Jewish Community Center in Scottsdale, Arizona. The event provided an opportunity for an informative and robust discussion with leaders from Arizona’s Jewish community. Over 150 invited guests, including community members, local leaders, and law enforcement, were in attendance. The event focused on establishing a dialogue between the community and law enforcement and on increasing community understanding and reporting of hate crimes and hate incidents.
“We remain committed to investigating and pursuing charges against those who induce fear and trauma through acts of hate directed at our fellow citizens based on their religious beliefs,” said United States Attorney Gary Restaino. “We are appreciative of the Jewish community and its leaders for convening with us, and thankful most of all for the energetic participation of many students from Arizona State University: they are our next generation of leaders and a critical voice in the community.”
Wednesday’s event featured a panel discussion among community leaders, local law enforcement, and the U.S. Attorney. The discussion allowed attendees to hear directly from members of the local Jewish community, who shared their thoughts, concerns, and experiences with hate crimes and hate incidents.
This fourth United Against Hate event follows similar meetings between the U.S. Attorney’s Office and leaders of Arizona’s African American, LGBTQ+, and Hispanic communities. The District of Arizona will hold additional United Against Hate events in the coming months to engage with communities across the state. These events will further encourage collaboration, support hate crimes prevention efforts, and encourage more Arizonans to report hate crimes and hate incidents.
RELEASE NUMBER: 2024-021_United Against Hate Event
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.U.S. Army Reserve Colonel Accused of Stealing Thousands in Unearned Military Pay EntitlementsRead the Press Release
SALT LAKE CITY, Utah – A federal grand jury in Salt Lake City, Utah, returned an indictment Feb. 21, 2024, charging a U.S. Army Reserve Colonel, formerly of Utah’s 76th Operational Response Command, for his role in defrauding the United States out of more than $60,000 in unearned military pay entitlements.
The announcement comes as part of the U.S. Attorney’s Office’s ongoing efforts with the Department of Defense Office of Inspector General and U.S. Army Criminal Investigation Division to address military pay fraud that occurred during the coronavirus pandemic.
According to court documents, Reece Dennis Roberts, 53, of Herriman, Utah, misrepresented his and his family’s primary residence in Utah, fabricated lease and listing documents, and submitted over a dozen false vouchers to military officials from June 2020 through July 2021. Though Roberts and his family lived in Herriman, Utah from 2020–2021, the indictment alleges that, upon receiving orders calling him to active duty at Fort Douglas, Utah, Roberts changed his primary residence to an out-of-state address that neither he nor his family occupied. In doing so, Roberts claimed entitlement to a family separation allowance, reimbursement for personal lodging expenses, and other entitlements that were not available to local servicemembers.
As further alleged in the indictment, the defendant duped military officials into paying him $3,700 per month in lodging reimbursements for a house he did not rent or own. The indictment alleges he accomplished this by fabricating a lease agreement and online listing for the fictitious rental, orchestrating sham rent payments, and repeatedly submitting false vouchers to military officials. Additionally, Roberts allegedly worked with an unindicted co-conspirator, recruited a third person to receive sham rent payments and return the payments to Roberts’ bank account using Venmo. This allowed Roberts to create fake rent receipts that were submitted to military officials every month for reimbursement.
“This type of deceit and misconduct is unacceptable for servicemembers at any rank, but it is particularly disheartening when committed by a field grade officer during a national emergency,” said U.S. Attorney Trina A. Higgins of the District of Utah. “The vast majority of servicemembers in Utah are law-abiding and deserve the utmost appreciation for keeping the people of Utah safe. My office remains committed to working with military officials and other law enforcement partners to prosecute military fraud and corruption.”
Roberts is charged with various federal crimes, including filing a fraudulent claim against the United States, conspiring to defraud the United States, theft of government property, and conspiracy to commit money laundering. Roberts’ initial court appearance on the indictment is scheduled for March. 13, 2024, at 1:30 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
The Department of Defense Office of Inspector General and U.S. Army Criminal Investigation Division is investigating the case.
Assistant United States Attorney Tanner Zumwalt of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two companies in Alaska seafood shipping industry to pay $9.5M to U.S. in settlement for Jones Act violationsRead the Press Release
ANCHORAGE, Alaska – Two companies in the Alaska seafood shipping industry recently settled a lawsuit challenging penalties and fines levied by U.S. Customs and Border Protection (CBP) for violating the Jones Act, a law that requires merchandise be transported by U.S. flagged vessels between U.S. ports.
An exception to the U.S. flagged vessel requirement allows seafood from Alaska to be transported to the mainland U.S. if it travels via Canadian rail. The companies challenged the penalties and fines in the U.S. District Court of Alaska, saying they did not violate the Jones Act while transporting seafood from Alaska to the mainland U.S. because it was “transported” by Canadian rail.
According to court documents, Kloosterboer International Forwarding LLC (KIF) and Alaska Reefer Management LLC (ARM) arranged transportation and related services to move frozen seafood from Alaska to the East Coast via maritime shipping. For over a decade, the companies moved seafood from Dutch Harbor, Alaska, to a port in New Brunswick, Canada, on foreign-flagged vessels. Once in Canada, KIF arranged for the seafood to be offloaded from the vessel onto trucks in the port. The trucks were then driven onto a flatbed rail car on the Bayside Canadian Railway (BCR), a roughly 100-foot length of railroad track located entirely within the Port of Bayside, where they rode the length of the rail and back before being driven off the train cars and proceeding directly to a border crossing in Maine for final transport to the mainland U.S. The BCR was specifically built and exclusively used to move the seafood in this manner so the companies could claim they met the Canadian rail exception to the Jones Act.
CBP began investigating the companies’ use of foreign-flagged vessels to transport merchandise in this manner, including over the BCR. Investigators determined the companies were in violation of the Jones Act because using the BCR did not meet the Canadian rail exception. CBP issued numerous penalty notices to KIF, and other companies involved in the shipping route, and the companies responded with a lawsuit against the federal government claiming they did not violate the Jones Act and that the penalties were unlawful.
The parties filed for summary judgement in the U.S. District Court of Alaska, and the Court ruled the companies’ utilization of the BCR for part of the transport of seafood from Alaska to the mainland U.S. was unlawful because there was no actual “transportation” of goods on the BCR, which is a requirement to meet one of the exceptions under the Act.
A settlement agreement was finalized between the companies and the U.S. in January 2024. The agreement requires KIF and ARM to pay $9.5 million to the U.S. The companies also stopped using the BCR to transport seafood to the U.S. after this ruling.
“This is the second largest settlement of a case brought under the Jones Act in the history of our Nation,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our prosecutors and law enforcement partners did a tremendous job successfully investigating and litigating this complex case. Our office will continue to dedicate resources to ensuring the laws in place to protect fair maritime commerce are followed by all industries in Alaska.”
“The resolution of this case sends a clear signal that CBP will use its law enforcement powers to detect and deter schemes that are designed to circumvent laws – such as the Jones Act -- which are intended to protect U.S. industries,” said AnnMarie R. Highsmith, Executive Assistant Commissioner, Office of Trade, U.S. Customs and Border Protection.
CBP investigated the case.
Assistant U.S. Attorneys Dustin Glazier and Seth Beausang, and former Assistant U.S. Attorney Siobhan McIntyre prosecuted the case, with significant assistance from Senior Trial Counsel Monica Triana with the Justice Department’s International Trade Field Office and Senior Attorney Marc Matthews with CBP.
UPDATE: The quote from S. Lane Tucker has been amended from the original publication.
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