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8 April 2024
Coeur d’Alene Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
COEUR D’ALENE – Alexander Scott Mercurio, 18, of Coeur d’Alene, was arrested Saturday, April 6, 2024 in Coeur d’Alene for attempting to provide material support and resources to ISIS, U.S. Attorney Josh Hurwit announced today.
According to the affidavit in support of the criminal complaint, Mercurio pledged his allegiance to ISIS and intended to commit attacks on its behalf. He planned to attack individuals at churches in Coeur d’Alene on April 7, 2024, using weapons, including knives, firearms, and fire.
The FBI’s Joint Terrorism Task Force (JTTF) conducted the investigation and thwarted Mercurio’s violent plot. Mercurio is currently in custody awaiting his initial appearance, which will be set by the Court.
“As alleged in the complaint, the defendant swore an oath of loyalty to ISIS and planned to wage an attack in its name on churches in Coeur d’Alene, Idaho,” said Attorney General Merrick B. Garland. “Thanks to the investigative efforts of the FBI, the defendant was taken into custody before he could act, and he is now charged with attempting to support ISIS’s mission of terror and violence. The Justice Department will continue to relentlessly pursue, disrupt, and hold accountable those who would commit acts of terrorism against the people and interests of the United States.”
“The defendant allegedly pledged loyalty to ISIS and sought to attack people attending churches in Idaho, a truly horrific plan which was detected and thwarted by the FBI’s Joint Terrorism Task Force,” said FBI Director Christopher Wray. “This investigation demonstrates the FBI’s steadfast commitment to work with our law enforcement partners to stop those who wish to commit acts of violence on behalf of – or inspired by – foreign terrorist groups.”
“Across the Department of Justice, and in my office, we have no higher calling than to protect our nation and our communities from terrorism. Along with our law enforcement partners, my office will always remain laser-focused on this part of our mission,” said U.S. Attorney Josh Hurwit. “I want to thank the FBI for its tireless work on this investigation and its thorough efforts to prevent violence. The support from local law enforcement was also integral to successfully disrupting the alleged plot.”
“This case should be an eye-opener to the dangers of self-radicalization, which is a real threat to our communities,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Protecting the American people from terrorism remains the FBI’s number one priority, and we continue to encourage the public to report anything suspicious to the FBI or your local law enforcement.”
Mercurio is charged by a federal complaint with attempting to provide material support or resources to a designated foreign terrorist organization. If convicted, Mercurio faces a maximum of 20 years in federal prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with valuable assistance provided by the Coeur d’Alene Police Department, the Kootenai County Sheriff’s Office, and the Ada County Sheriff’s Office.
Assistant U.S. Attorneys Heather S. Patricco and David G. Robins and First Assistant U.S. Attorney Justin D. Whatcott for the District of Idaho, and Charles Kovats and Andrea Broach of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint 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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MercurioA_Complaint and AffidavitCity of Atlanta’s Former Chief Financial Officer Pleads Guilty to Federal Program Theft and Tax ObstructionRead the Press Release
The City of Atlanta’s former chief financial officer (CFO) pleaded guilty today to federal program theft and to obstructing an IRS audit.
According to court documents, from 2011 to 2018, Jimmie Anthony “Jim” Beard, 60, of Fort Lauderdale, Florida, oversaw the City of Atlanta’s Department of Finance, in which his primary responsibility was to manage the city’s financial condition. At least as early as 2015, Beard devised and executed a scheme to use his authority as CFO to obtain money and property from Atlanta for his own use, including to pay for thousands of dollars in personal travel expenses for himself, his family, and his travel companions, and to buy and possess restricted machine guns.
Further, while CFO, Beard submitted a 2013 personal income tax return to the IRS in which he claimed that he operated a personal business that incurred more than $33,500 in alleged losses in 2013. In 2015, while being audited in relation to these purported losses, Beard provided to the IRS receipts for airfare and hotels that Beard falsely claimed were personal business expenses. The expenses were actually paid to Beard while working for the City and using his City of Atlanta credit card.
Beard is scheduled to be sentenced on July 12 and faces a maximum penalty of 13 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan Buchanan for the Northern District of Georgia; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Special Agent in Charge Keri Farley of the FBI Atlanta Field Office; and Acting Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI and IRS-CI are investigating the case.
Trial Attorney Trevor Wilmot of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Garrett Bradford and Tiffany Johnson for the Northern District of Georgia are prosecuting the case. Former Assistant U.S. Attorney Jeffrey Davis for the Northern District of Georgia provided valuable assistance.
Chinese National Indicted for Access Device FraudRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Donghui Liao (32, China) with possession of 15 or more counterfeit or unauthorized access devices. If convicted, Liao faces a maximum penalty of 10 years in federal prison.
According to the indictment, on October 17, 2023, Liao knowingly and with intent to defraud possessed 15 or more counterfeit and unauthorized access devices, including retail and credit card gift cards.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Ocala Police Department and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Chamois Man Sentenced to 15 Years for Producing Child PornographyRead the Press Release
Dylan Joseph Minor, 27, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole. Minor will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On July 20, 2023, Minor pleaded guilty to producing child pornography.
A detective with the Franklin County, Mo., Sheriff’s Department received a Cybertip from National Center for Missing and Exploited Children on Oct. 14, 2022. The Cybertip indicated that a Kik user, later identified as Minor, had uploaded multiple images and/or videos of suspected child pornography.
On Oct. 17, 2022, the detective executed a search warrant at Minor’s residence. Minor admitted that he had taken pornographic photos of the child victim and traded them with others on the Kik application. The detective analyzed two cell phones seized from Minor and found thousands of images and more than 100 videos depicting child pornography.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Franklin County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Central States Pension Plan Agrees to Repay Excess Special Financial Assistance FundsRead the Press Release
The Central States, Southeast and Southwest Areas Pension Plan (Central States) has entered into a civil settlement agreement pursuant to which it has agreed to repay more than $126.5 million in excess funds that it received from the Pension Benefit Guaranty Corporation (PBGC) in connection with the PBGC’s Special Financial Assistance Program.
The American Rescue Plan Act of 2021 established the Special Financial Assistance (SFA) Program to protect millions of workers in multiemployer pension plans who faced cuts to their benefits, including potentially catastrophic benefit reductions in many cases. The SFA Program is administered by the PBGC, which was authorized to make one-time payments to certain eligible multiemployer pension plans in the amount that was projected to enable the plans to pay all benefits through 2051. Because inclusion of participants who died in the census data provided with the SFA application could alter the amount of funding that an eligible multiemployer plan would need to pay benefits in future years, the PBGC initially required SFA applicants to provide documentation of an independent death audit to identify deceased participants in support of plans’ SFA applications.
Despite its best efforts, Central States’ census erroneously included approximately 3,500 deceased participants among the more than 360,000 plan participants identified in the plan’s SFA application. The erroneous inclusion of deceased participants in Central States’s application was identified during an audit conducted by the PBGC’s Office of Inspector General (PBGC-OIG). The audit determined that as a result of the errors Central States’ SFA award of approximately $35.8 billion was overstated by approximately $126 million. Central States cooperated with the government’s investigation in this matter, including assisting with the actuarial analyses necessary to calculate and validate the amount of the excess funds that it received.
“This settlement demonstrates the Civil Division’s commitment to help recover any excess funds paid in connection with the SFA Program,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “I encourage other pension plans to cooperate with the government’s ongoing efforts to identify and recoup excess SFA Program funds.”
“PBGC-OIG is committed to conducting investigations, audits and other work to strengthen the public trust in government operations,” said Inspector General Nicholas J. Novak of the PBGC-OIG. “Today’s settlement ensures that Central States will return approximately $126.5 million to the United States Treasury, and demonstrates that the partnership between the PBGC-OIG and the Justice Department provides a critical mechanism to protect taxpayer funds.”
“The PBGC has been coordinating with the PBGC-OIG, Justice’s Civil Division and Central States to finalize this agreement,” said PBGC Director Gordon Hartogensis. “We appreciate their collaborative efforts in facilitating this recovery. PBGC is also working with other plans to recover any SFA funds paid out because of inaccurate census data.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, PBGC-OIG and PBGC Office of General Counsel, along with the Department of Labor and Department of Treasury.
Senior Trial Counsel Kelley Hauser of the Civil Division’s Commercial Litigation Branch handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementCentral American Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to five months in federal prison.
Luis Montiel-Rincon, age 29, a citizen of Mexico illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a November 30, 2023, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Montiel-Rincon admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Montiel-Rincon was previously deported in April 2015. On October 10, 2023, immigration officials learned Montiel-Rincon had illegally returned to the United States and found Montiel-Rincon at the Linn County Jail following his arrest on state charges for eluding.
In November 2023, Montiel-Rincon was convicted in the Iowa District Court for Linn County of eluding. In that case, Montiel-Rincon eluded officers in August 2023 and willfully failed to bring his motorcycle to a stop while reaching speeds of up to 101 mph in a 30-mph zone. Montiel-Rincon was also convicted in the Iowa District Court for Linn County in November 2023 for operating a motor vehicle while intoxicated from an incident occurring in July 2023.
Montiel-Rincon was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Montiel-Rincon was sentenced to 148 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Montiel-Rincon is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
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-83.
Follow us on Twitter @USAO_NDIA.
Case of Drive-By Murder on I-295 in 2015 Ends with Murder ConvictionRead the Press Release
WASHINGTON – Oscar Ramos, 35, of Washington, D.C., was found guilty today of first degree murder while armed and assault with intent to kill while armed for the May 28, 2015 shooting that killed 50-year old Pedro Melendez Alvarado, of Alexandria, Virginia, and wounded 56-year old Miguel A. Rodriguez Carabantes, also of Alexandria, Virginia. The verdict was announced by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
A Superior Court jury returned the verdict after a six-day trial. According to the government’s evidence, Ramos, who is a member of MS-13, was a passenger in a car that was driving on I-295 NB, in Southwest, D.C., near exit 1, when the car he was in pulled alongside another vehicle being driven by Mr. Alvarado who was on his way to work with Mr. Carabantes. The defendant and another passenger in the car with him opened fire on Mr. Alvarado’s car, struck the victims, then pulled away.
The defendant was charged in 2021 after evidence was developed identifying him as one of the shooters. The defendant and Mr. Alvarado are both from El Salvador. The defendant believed Mr. Alvarado was somehow involved in the death of the defendant’s father, years earlier, in El Salvador.
The Honorable Mark Raffinan scheduled sentencing for July 12, 2024.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from MPD, the FBI’s Washington Field Office, the Department of Justice Computer Crime and Intellectual Property Section, the Department of Homeland Security Investigations (HSI) Washington, D.C. Field Office, the Prince George’s County (Md.) Police Department, the Montgomery County (Md.) Police Department, the Chelsea, Massachusetts Police Department, and the Anne Arundel County (Md.) Fire Department. Finally, they commended the work of Assistant U.S. Attorneys Michael Liebman and Jacqueline Yarbro who prosecuted the case at trial.
Atlanta’s Former Chief Financial Officer Pleads Guilty to Theft of Government Funds and Tax ObstructionRead the Press Release
ATLANTA - The City of Atlanta’s former Chief Financial Officer (“CFO”), Jimmie “Jim” A. Beard, pleaded guilty today to theft of government funds, which included the purchase and possession of two machine guns, and obstructing federal tax laws.
“Jim Beard abused his power as the CFO for the City of Atlanta to steal tens of thousands of dollars from taxpayers to fund personal trips, luxuries, and even custom-built machine guns, then lied to the IRS and submitted altered records when called to account for suspicious write-offs,” said U.S. Attorney Ryan K. Buchanan. “The people of the City of Atlanta deserved better stewards of taxpayer money, and Beard’s guilty plea today is a demonstration that public officials who abuse their power will be held accountable.”
“Beard’s continuous abuse of his position as one of the most powerful executives in the City of Atlanta is not only a violation of his oath, but a violation to all other public official’s credibility, which erodes public trust in government,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI’s top priorities. It is our hope that by holding Beard accountable for his greed it will help regain some of the public’s trust.”
“As a public official, Beard was delegated to conduct city business on behalf of Atlanta residents,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Instead, he chose to steal from public coffers for his own benefit and willfully broke federal tax laws. Let Beard’s plea today serve as notice to others entrusted with carrying out government business on behalf of the people that IRS special agents and our law enforcement partners will investigate, and our justice system will hold accountable those who break the public’s trust.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately November 2011 to May 2018, Beard served as the CFO of the City of Atlanta. As CFO, Beard directed and managed the Department of Finance, with primary responsibility for oversight and management of the City’s financial condition.
During his tenure, Beard devised and executed a scheme to obtain money and property from the City of Atlanta for private use, including using City of Atlanta funds to: (1) pay for personal travel expenses for himself, his family, and his travel companions; (2) buy items for personal use, including two machine guns; (3) pay for travel to conferences or meetings for which the conference or meeting host reimbursed Beard, but Beard kept the money and did not give the reimbursement funds to the City of Atlanta; and (4) pay for travel that Beard falsely claimed to the IRS was related to his personal consulting business.
In total, Beard stole at least tens of thousands of dollars from the City of Atlanta. By way of example only:
- In August 2015, Beard used his City credit card to pay $1,278.72 for a hotel room at the J.W. Marriott Hotel in Chicago, Illinois for a three-night weekend stay. Beard told the City that the hotel room was for a “Swap Advisory Engagement.” In reality Beard was not in Chicago that weekend, but booked the hotel for his stepdaughter to attend the Lollapalooza music festival.
- In December 2015, Beard ordered two custom-built machine guns using a $2,641.90 check from the City, telling the manufacturer that the machine guns were for the Atlanta Police Department (“APD”) – even though he personally possessed the guns until about March 2017, when he abandoned the firearms at APD’s Executive Protection Office at City Hall.
- In April 2016, Beard used his City credit card to pay $648.20 for airfare from Atlanta, Georgia to New Orleans, Louisiana for a weekend trip to the New Orleans Jazz and Heritage Festival. However, Beard had no City business in New Orleans during that weekend and traveled with a personal companion. Additionally, he later represented to the IRS that this trip was for his personal consulting business and was not reimbursed by the City, claiming the charge as a business deduction to reduce the amount of personal taxes he owed.
- In June 2016, Beard used his City credit card to pay $951.20 for airfare to Washington, D.C. and $24.32 for a taxi for a meeting with the Municipal Securities Rulemaking Board (“MSRB”). Even though Beard charged the travel to the City, Beard asked the MSRB to reimburse him personally for these costs and submitted copies of his receipts to the MSRB. As a result, the MSRB issued a check to Beard in the amount of $1,276.52, which Beard kept and deposited into his personal bank account.
During his tenure as CFO, Beard also submitted to the IRS a tax return for 2013, in which he claimed that he owned a consulting business which incurred more than $33,500 in alleged business losses in 2013, including $12,000 for travel expenses and $7,115 for deductible meals and entertainment expenses. In July 2015, the IRS advised Beard that it was auditing that tax return and requested that Beard provide documentation to support the purported expenses for his consulting business. In response, Beard falsely provided: (1) receipts for airfare and hotels that Beard paid for using his City of Atlanta credit card (which Beard had previously told the City of Atlanta were for City business and his job as CFO); (2) expense reports for personal meals with his wife and personal companions; and (3) altered receipts that hid from the IRS the fact that the charges were incurred in connection with Beard’s work for the City of Atlanta. In reality, none of those expenses were for a consulting business.
In determining the actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing for Jimmie “Jim” A. Beard, 60, of Fort Lauderdale, Florida is scheduled for July 12, 2024, at 2:00 p.m. before U.S. District Judge Steve C. Jones.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Garrett Bradford and Tiffany Johnson, Department of Justice Trial Attorney Trevor Wilmot, and former Assistant U.S. Attorney Jeffrey Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Arizona Man Arrested for Making Online Threats to Kill Attendees at a Music Event in Tempe, ArizonaRead the Press Release
PHOENIX, Ariz. – Trevor Lee O’Dowd, 29, of Prescott Valley, was arrested last week for making online threats to kill anyone who attended yesterday evening’s music event at a venue in Tempe, Arizona. O’Dowd was charged by federal criminal complaint with a single count of Interstate Communication of Threats.
The complaint alleges that, between March 12 and 13, 2024, O’Dowd used a social media platform to post numerous threats to injure and kill attendees at the music event. O’Dowd posts indicated that he felt disrespected for not being invited to the event. His threatening posts included the following statements:
“If they go im going on a rampage im just letting yall know before it happens.”
“Anyone got an AK I can b[o]rrow. Bout to go end some lives since u think I’m never gonna make it.”
“I suggest hiring more security for ur events soon.”
“April 7th will be the last day for AZ hip hop.”
“[D]on’t show up to mill Ave is all imma say.”
In other messages, O’Dowd welcomed a police presence and added that it would “be a wild west shootout like the good old days . . . I have no reason to live so good luck with that.”
The single count of Interstate Communication of Threats carries a maximum sentence of five years in prison, a fine of up to $250,000, and up to three years of supervised release.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
O'Dowd - ComplaintCASE NUMBER: 24-6135MJ
RELEASE NUMBER: 2024-046_O’Dowd# # #
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.Another Co-founder of Medical Charity in St. Joseph Pleads Guilty to $8 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Another co-founder of a so-called Christian health care sharing ministry in St. Joseph, Mo., pleaded guilty in federal court today to his role in an $8 million wire fraud conspiracy that cheated hundreds of members, and to making false statements on a personal tax return.
James L. McGinnis, 77, of St. Joseph, waived his right to a grand jury and pleaded guilty before U.S. District Judge Greg Kays to a federal information that charges him with one count of conspiracy to commit wire fraud and one count of making false statements on a tax return.
McGinnis co-founded Medical Cost Sharing, a tax-exempt organization, and served as its chief operating officer from 2014 through December 2022.
Craig Anthony Reynolds, 62, of St. Joseph, another co-founder of Medical Cost Sharing, pleaded guilty to the same charges in a separate but related case on Nov. 14, 2023. Reynolds incorporated and ran Medical Cost Sharing as its president and chief executive officer from 2014 through December 2022.
McGinnis and Reynolds each admitted that he and his co-conspirators used false and fraudulent promises to market Medical Cost Sharing as a “Health Care Sharing Ministry” to defraud hundreds of “ministry members.” They collected more than $8 million in member “contributions,” yet paid only 3.1 percent in health care claims so that they could personally profit and take most of the members’ contributions for themselves.
McGinnis and Reynolds pocketed at least $5,168,268 from the member contributions from December 2015 through December 2022. Thus, McGinnis and Reynolds took at least 64 percent of total member contributions for their personal profit.
McGinnis and Reynolds marketed Medical Cost Sharing as a “Christian Health Care Sharing Ministry” through insurance brokers, radio stations, social media, and its website. Medical Cost Sharing sales materials promoted its 501(c)(3) tax-exempt designation, advertising that it was different from for profit health insurance. The Medical Cost Sharing website claimed, “while we are not an insurance company, many think of us as a Christian Health Insurance, or Christian Medical Insurance because, like conventional insurance plans, we help you pay your healthcare costs. We help you protect your family. But unlike these corporate, profit based plans, we are a healthcare sharing ministry … your healthcare costs are shared with other Christians enrolled in our medical sharing plans.”
Medical Cost Sharing promised its member that if they paid monthly “contributions,” Medical Cost Sharing would pay claims after the members’ “personal responsibility” (deductible) was met.
In reality, McGinnis and Reynolds admitted, Medical Cost Sharing rarely paid members’ health care claims. Sometimes Medical Cost Sharing would pay a part of a claim if the member filed a complaint with their state attorney general and/or hired an attorney to represent them against Medical Cost Sharing.
Medical Cost Sharing paid no claims at all from Feb. 22, 2021, through December 2022, although it collected a total of nearly $1.2 million in dues in 2021 and 2022.
On Dec. 13, 2022, federal agents served search warrants on the Medical Cost Sharing business location and the residences of McGinnis and Reynolds and seized property generated from Medical Cost Sharing proceeds. Medical Cost Sharing continued to try to collect membership dues after the search and seizure warrants. On Dec. 27, 2022, the court entered a temporary restraining order that prohibited Medical Cost Sharing, McGinnis, and Reynolds, from continuing to perpetrate a fraudulent scheme and from processing Medical Cost Sharing member payments, among other actions.
In addition to the wire fraud conspiracy, McGinnis also pleaded guilty today to making false statements on a personal tax return. McGinnis admitted that he filed a return that claimed he had no taxable income in 2019. Reynolds actually received at least $140,881 in taxable income in 2019.
Under the terms of today’s plea agreement, McGinnis must pay restitution to Medical Cost Sharing member victims and to the IRS. McGinnis also must forfeit to the government any property obtained from the wire fraud conspiracy and a money judgment representing all proceeds obtained from the scheme.
Under federal statutes, McGinnis is subject to a sentence of up to 23 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney, Patrick Daly, and John Constance. It was investigated by the FBI and IRS-Criminal Investigation.
FBI Website for Victims of Medical Cost Sharing Fraud
Those who believe they are victims of this fraud and wish to receive restitution for any losses suffered as a result may provide their information through the MCS Victim Information Page that has been established by the FBI.
https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/mcs-victim-information-page
7 April 2024
Suspect Arrested in Arson at Burlington Office of Senator SandersRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that Shant Soghomonian (also known as Michael Soghomonian), 35, previously of Northridge, California was arrested on April 7, 2024, pursuant to a federal criminal complaint charging him with using fire to damage the building at One Church Street in Burlington, Vermont – a building used in interstate commerce and as a place of activity affecting interstate commerce. An initial appearance before U.S. Magistrate Judge Kevin J. Doyle has not yet been scheduled.
According to court records, Soghomonian entered the building at One Church Street in Burlington on the morning of April 5, 2024, and proceeded to the third floor where the Vermont office of Senator Sanders is located. Soghomonian was recorded on a security video spraying a liquid near the outer door of the office and then lighting the area with a handheld lighter. A blaze quickly began while Soghomonian departed via a staircase. The resulting fire damaged the outside of the office door and surrounding areas, and the building sprinklers discharged on multiple floors. The Senator’s office was occupied by multiple employees who were not physically injured during the incident. It is not known how many other occupants were in the building, but no injuries were reported.
The United States Attorney emphasizes that the charges in the complaint are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty. If convicted, Soghomonian faces a maximum possible penalty of not less than 5 years and not more than 20 years in prison and a fine of up to $250,000. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and sentencing factors in the United States Code.
U.S. Attorney Nikolas P. Kerest commended the joint investigatory efforts of the Burlington Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Shelburne Police Department; the Williston Police Department; the Vermont State Police; and the U.S. Capitol Police.
The prosecutor is Assistant United States Attorney Matthew Lasher. Counsel for Soghomonian has not yet been identified.
5 April 2024
Wife of Large Scale Drug Trafficker Pleads Guilty to Money Laundering ConspiracyRead the Press Release
BOSTON – A California woman pleaded guilty yesterday in federal court in Boston to her role in a money laundering conspiracy involving proceeds of methamphetamine and marijuana distribution. Defendant assisted husband in laundering drug proceeds.
In total, over 160 pounds of pure methamphetamine, as well as an AK-47, a Glock with no serial number, two loaded Smith & Wesson handguns, and over 4,200 rounds of ammunition were seized during the investigation. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled. Two co-defendants Reshat Alkayisi and Andre Watson recently pleaded guilty and are scheduled to be sentenced on July 11, 2024 and July 16, 2024, respectively.
Christina Lua, 50, of Santa Rosa, Cali., pleaded guilty to one count of a second superseding indictment charging her with money laundering conspiracy. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 12, 2024.
Lua was originally charged in a superseding indictment, along with four others, in September 2021 with money laundering conspiracy. The indictment charged a total of 11 defendants. In addition to the money laundering conspiracy, other defendants were charged with controlled substance and firearm offenses.
In approximately October 2020, investigators received information about drug trafficking activities of a large-scale methamphetamine supplier in the Boston area. In late 2020, investigators identified Alkayisi as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to customers throughout the New England area. Lua was identified as Alkayisi’s wife, who assisted Alkayisi in laundering his drug proceeds, including by purchasing vehicles with cash drug proceeds, and by depositing cash drug proceeds in amounts less than $10,000 so as to conceal the nature of the funds and to avoid reporting requirements.
Lua is the ninth defendant to plead guilty. The two remaining defendants are scheduled to plead guilty.
The charge of money laundering conspiracy provides for a maximum sentence of 20 years in prison, three years of supervised release, a fine of the great of $500,000 or twice the amount of laundered proceeds, and a mandatory special assessment of $100. 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Shawn Jenkins, Interim Commissioner of the Massachusetts Department of Correction made the announcement. Valuable assistance was provided by the Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. Assistant U.S. Attorneys Alathea Porter, Katherine Ferguson, and James Arnold of the Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Wewoka Resident Sentenced to 12 Years for Armed AssaultRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darian Ty Farris, age 27, of Wewoka, Oklahoma, was sentenced to 120 months for one count of Discharging a Firearm During and in Relation to a Crime of Violence and 30 months in custody for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. The terms are set to be served consecutively.
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma Bureau of Investigation, the Seminole County Sheriff’s Office, the Wewoka Police Department, the Seminole Lighthorse Police Department, and the Holdenville Police Department.
On August 10, 2023, Farris pleaded guilty to the charges. According to investigators, in the early morning hours of March 2, 2023, Farris approached a Wewoka residence and yelled through the front door, challenging the occupant to a fight. When the occupant stepped outside, Farris intentionally shot the victim in the abdomen with a firearm and fled. Law enforcement investigating the crime issued a warrant for Farris’s arrest. On April 18, 2023, law enforcement uncovered the outstanding warrant during a routine traffic stop. Faced with arrest, Farris led officers on a chase at speeds in excess of 100 miles per hour and fired upon pursuing officers.
The crimes occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Farris will remain in 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 at sentencing.
Westerville man sentenced to 7 years in prison for possessing machine gun after prior felony convictionsRead the Press Release
COLUMBUS, Ohio – Raymond A. Small, 38, of Westerville, was sentenced in U.S. District Court today to 84 months in prison for possessing a fully-automatic weapon as a previously convicted felon.
According to court documents, from August to December 2022, Small was involved in numerous illegal narcotics and firearms transactions with an undercover agent. The transactions involved one machine gun and seven other guns.
Small regularly recruited others to participate in firearms trafficking, including recruiting two co-defendants in this case.
For example, Small and a friend met up with the undercover agent in August 2022 and brought with them Oxycodone pills and a machine gun that had no serial numbers. In October 2022, Small accompanied a second individual and met again with the undercover agent to sell the agent two pistols.
Small committed these crimes while on probation for prior drug and weapons offenses.
Small pleaded guilty in August 2023 to possessing a machine gun and possessing a firearm as a previously convicted felon.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the sentence imposed by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorneys Kevin W. Kelley and S. Courter Shimeall are representing the United States in this case.
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Utah Man Sentenced to Seven Years in Prison for Murder-for-Hire SchemeRead the Press Release
UTICA, NEW YORK – Christopher Pence, age 43, of Cedar City, Utah, was sentenced yesterday to 84 months in prison for using the Internet to solicit and pay for the murders of two Rensselaer County residents.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his previously entered guilty plea, Pence admitted that between July 16 and August 9, 2021, from his computer at his home in Utah, he accessed a “darknet” website dedicated to arranging contract killings. Through the website, Pence arranged for the murder of two residents of Hoosick Falls, New York, and paid a website administrator approximately $16,000 worth of Bitcoin to facilitate the murders. Pence then provided the website administrator with the names, address and photographs of the intended victims, instructed the administrator to make the murders look like an accident or botched robbery, and requested that care be taken not to harm any of the children who resided with the victims.
The intended victims were not harmed and the FBI arrested Pence in Utah on October 27, 2021. He has remained in federal custody since that time. Following his arrest, Pence told investigators that he solicited the murders of the victims because of the fraught relationship between his family and the victims following Pence’s family’s adoption of several of the victims’ children.
United States District Judge David N. Hurd also ordered Pence to serve a 3-year term of supervised release following his release from prison.
The FBI investigated this case and Assistant U.S. Attorney Emmet J. O’Hanlon prosecuted this case.
United States Attorney’s Office and the U.S. Marshals Service Warn the Public of Jury Duty ScamRead the Press Release
Montgomery, Alabama – Acting United States Attorney Jonathan S. Ross and United States Marshal Jesse Seroyer, Jr., warn the public of scams involving supposed federal jury duty.
These scams typically involve a caller posing as a United States Marshal’s Service representative. The caller informs the victim that he or she is about to be arrested for failing to appear for federal jury duty. The perpetrator then instructs the victim that he or she can avoid arrest by paying a “fine” in accordance with specific instructions. To make the scam believable, the scammer may provide convincing information, including personal details about the victim (e.g., name, address, date of birth, etc.), the title and badge number of a law enforcement officer or court official, the name of a federal judge, or the courthouse address. Scammers are even using technology to mask their phone numbers and make it appear as if the call is coming from the court or a government agency. This tactic is called “spoofing” and has become very common with scammers nationwide. In some cases, the scammer may carry the scheme out via email using an official-looking email address.
The Middle District of Alabama has recently seen an increase in reports of these phone calls. The United States Attorney’s Office and the United States Marshals Service hope to raise awareness and, as a result, prevent more people from being victimized by the scam.
If you receive a jury duty related call or email, do not provide any personal information or send money. Federal courts do not call or email prospective jurors to ask for money or personal information and they never serve an arrest warrant by phone. Real, valid arrest warrants are always served in person. The court also does not demand the payment of money in lieu of arrest, nor does it accept payment via gift cards, pre-paid cards, wire transfers, or cryptocurrency deposits.
Anyone who receives a “jury duty scam” phone call or email should report it right away to the Federal Trade Commission at https://reportfraud.ftc.gov/#/, the U.S. Marshals Service at (334) 922-6960, or your local FBI Field Office. If available, please have the caller ID or email address information of the scammer when you call. You can authenticate a call by contacting the Clerk’s Office of the United States District Court in your area and verify the information given by the caller. Contact information for the U.S. District Court for the Middle District of Alabama can be found at www.almd.uscourts.gov/.
United States Attorney’s Office and Atlanta Field Office IRS Criminal Investigation Warn the Public of Unlawful Tax Return PreparersRead the Press Release
Montgomery, Alabama – As the April 15th federal tax filing deadline approaches, Acting United States Attorney Jonathan S. Ross for the Middle District of Alabama, and Acting Special Agent in Charge Demetrius Hardeman with the IRS Criminal Investigation Atlanta Field Office, urge taxpayers to be cautious when choosing return preparers and to review their returns thoroughly. An unscrupulous preparer who includes errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties, and interest.
“Tax time can be very stressful,” said Acting United States Attorney Ross. “Rushing to beat the deadline can result in overlooked mistakes and the filing of a false return to the IRS. Always inspect your returns before they are filed. If your tax preparer asks you to sign a blank return, refuses to sign your return as your preparer, or fails to give you a copy of your return, extra caution may be warranted. Taxpayers are responsible for the information on their tax returns, so it is important to choose a tax professional that you trust to prepare your returns correctly.”
“As we come to the end of this year’s tax season, I want to urge taxpayers to not let the deadline lead them to being less careful in choosing a reputable tax preparer,” said Acting Special Agent in Charge Hardeman. “For those who have already filed, it doesn’t hurt to review your tax information to ensure the information is correct.”
Over the years, the United States Attorney’s Office has worked with the IRS to bring criminal actions against dishonest tax preparers operating in the Middle District. The message of each prosecution is clear — those who prepare fraudulent returns will face serious and lasting consequences.
In the most recent example, on February 2, 2024, a federal judge sentenced 44-year-old April Michelle Nesbitt to 33 months in prison for including false information on a client’s return causing the taxpayer to receive greater refunds than he or she was entitled to receive. The judge also ordered Nesbitt to pay restitution in the amount of $46,669 to the IRS.
Acting United States Attorney Ross and Acting Special Agent in Charge Hardeman remind taxpayers that the IRS has information, tips and reminders on its site for choosing a tax preparer carefully (Choosing a Tax Professional and How to Choose a Tax Return Preparer) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
U.S. Court of Appeals Confirms Justice Department’s Authority to Investigate Potentially Anticompetitive Conduct by the National Association of RealtorsRead the Press Release
Today, the U.S. Court of Appeals for the District of Columbia Circuit lifted restrictions imposed by a lower court that had prevented the Justice Department from investigating potentially anticompetitive conduct by the National Association of Realtors (NAR). The D.C. Circuit’s decision confirms the United States’ position that it retains the authority to investigate NAR’s Participation Rule and Clear Cooperation Policy to protect competition for the benefit of homebuyers.
“Real-estate commissions in the United States greatly exceed those in any other developed economy, and this decision restores the Antitrust Division’s ability to investigate potentially unlawful conduct by NAR that may be contributing to this problem,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division is committed to fighting to lower the cost of buying and selling a home. I would like to commend the staff of the Antitrust Division and our colleagues in the department for achieving this important result.”
The United States has filed several amicus briefs and statements of interest supporting competition in the real-estate industry and meaningful relief for homebuyers and sellers.
U.S. Attorney’s Office and DEA Announce the First Utah Drug Overdose Task Force to Combat the Opioid Epidemic in the Beehive StateRead the Press Release
SALT LAKE CITY, Utah – United States Attorney, Trina A. Higgins and Acting Special Agent in Charge, Dustin Gillespie, of the U.S. Drug Enforcement Administration’s Rocky Mountain Field Division announce the formation of the Utah Drug Overdose Task Force.
Over the past few years, Utah has experienced a rise in overdose/poisoning incidents, and fentanyl has been the primary catalyst. According to the most recent data by the Utah Department of Health and Human Services, 603 Utahns died as a result of drug overdose in 2021. That same year, 67% of Utah overdose deaths were related to opioids and 29% were related to fentanyl. Learn more: https://opidemic.utah.gov/.
“Fentanyl is the deadliest drug threat the United States has ever faced, and Utah is no exception, said U.S. Attorney Trina A. Higgins of the District of Utah. “My office and our law enforcement partners are working every day to protect our communities from fentanyl and other illicit drugs and prosecute people who traffic these deadly substances. It is also our goal to raise awareness. Through the Utah Drug Overdose Task Force, I am confident we can make a difference.”
According to the DEA, Fentanyl has saturated the drug market in Utah. It is cheaper, more potent, and more widely available than ever before.
The Utah Drug Overdose Task Force or UDOTF is a decentralized task force consisting of sworn law enforcement members from agencies across the Salt Lake valley. Led and coordinated by DEA’s Rocky Mountain Field Division and the U.S. Attorney’s Office for the District of Utah, the participants remain with their departments conducting their normal duties and serve on the task force as a collateral duty when needed. The goal of task force is to raise awareness and increase the number of prosecutable cases through proper evidence collection and preservation.
Currently, the U.S. Attorney’s Office for the District of Utah has 10 cases either indicted or under investigation that are a result of the Utah Drug Overdose Task Force.
“Through the task force we aim to consolidate intelligence, particularly digital evidence, from various drug overdose and poisoning crime scenes so that we may identify and exploit potential linkages between incidents, said DEA Assistant Special Agent in Charge Dustin Gillespie, of the Salt Lake City District Office.
The Utah Drug Overdose Task Force is made up of 10 state, local and federal law enforcement offices:
• Drug Enforcement Administration
• Salt Lake City Police Department
• Unified Police Department/Salt Lake City Sheriff’s Office
• Layton City Police Department
• Sandy City Police Department
• Ogden City Police Department
• Davis County Sheriff’s Office
• South Jordan Police Department
• Homeland Security Investigations
• U.S. Attorney’s Office for the District of UtahUtah Drug Overdose Task Force is made possible through funding for state/local overtime provided by the Department of Justice Organized Crime Drug Enforcement Task Forces (OCDETF). Funding allows members of the task force to deploy to crime scenes (after hours) when requested to assist and guide a first responder thru the processing of a crime scene. DEA’s High Intensity Drug Trafficking Areas (HIDTA) has also assisted with supplies needed by the task force for preserving and securing evidence when at crime scenes.
The U.S. Attorney’s Office and the DEA created a checklist to serve as a guide for first responders arriving to an overdose/poisoning crime scene.
OCDETF
The Organized Crime Drug Enforcement Task Force (OCDETF) identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.HIDTA
The High Intensity Drug trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Utah is a member of the Rocky Mountain HIDTA (along with CO, WY, and MT).U.S. Attorney Hurwit Announces Federal Prison Sentences for Three Southern Idaho Drug TraffickersRead the Press Release
BOISE – U.S. Attorney Josh Hurwit announced the results of three separate drug trafficking cases in Southern Idaho today.
1. Coconspirators Each Sentenced to Over 100 Months in Federal Prison for Distributing Methamphetamine.
In one case, Jason Castillo, 46, of Nampa, and Cheyanne Juarez, 31, of Ontario, Oregon were each sentenced to over 100 months in federal prison for distributing methamphetamine.
According to court records, on December 20, 2022, Castillo sold two and half pounds of methamphetamine to another person. On January 31, 2023, Juarez sold two pounds of methamphetamine to another person. Their co-defendant, Owenn Mitchell, 41, of Salem, Oregon, was indicted on two counts of aiding and abetting the distribution of methamphetamine. Mitchell’s case is scheduled for trial on June 24, 2024.
In a separate federal case, Castillo also pleaded guilty to one count of possession with intent to distribute methamphetamine and fentanyl and one count of unlawful possession of a firearm by a convicted felon. In January of 2023, Castillo went on a crime spree where he was found in possession of a pound of methamphetamine, approximately 63 grams of fentanyl, and three firearms. Castillo has several prior violent felonies involving domestic violence and drug trafficking offenses. He also has a prior federal felony for unlawful possession of a firearm. These priors make him prohibited from possessing firearms.
On April 2, 2024, Senior U.S. District Judge Jack Zouhary, from the Northern District of Ohio, sitting by designation, sentenced Castillo to 175 months (over 14 and a half years) in federal prison, on each case to run concurrently with each other. Judge Zouhary also ordered Castillo to serve five years of supervised release after the completion of his prison sentence.
On April 4, 2024, U.S. District Judge Amanda K. Brailsford sentenced Juarez to 101 months (over 8 years) in federal prison, followed by five years of supervised release after the completion of her prison sentence.
2. Nampa Woman Trafficking Meth, Heroin, and Fentanyl Sentenced to 66 Months in Federal Prison.
In a separate case, Mary Jo Myers, 46, of Nampa, was sentenced to five and a half years in federal prison for possession with intent to distribute methamphetamine, heroin, and fentanyl. Senior U.S. District Judge Jack Zouhary, from the Northern District of Ohio, sitting by designation, also ordered Myers to serve three years of supervised release following her prison sentence.
According to court records, Myers was pulled over for a traffic violation on February 10, 2022. During the traffic stop, a canine trained in the detection of the odor of controlled substances, conducted an open-air sniff around the vehicle and positively alerted to the presence of the odor of a controlled substance emanating from the vehicle. Investigators searched the vehicle and found over a half pound of methamphetamine, 82 grams of heroin, approximately 150 fentanyl pills, and 12 grams of fluorfentanyl powder, a fentanyl analogue.
U.S Attorney Hurwit applauded the Treasure Valley Metro Violent Crimes Task Force, which is led by the FBI, for the investigations in the Castillo, Juarez, and Mitchell cases. In addition to the work of the Metro Violent Crimes Task Force, U.S. Attorney Hurwit thanked the following agencies for assisting in the investigation: the DEA, the ATF, the U.S. Marshals Service, the Caldwell Police Department, the Canyon County Sheriff’s Office, the Nampa Police Department, Idaho Department of Correction, the Canyon County Prosecutor’s Office, the Malheur County Sherriff’s Office, the Ontario Police Department, the Oregon State Police, and the High Desert Drug Task Force in Oregon.
U.S. Attorney Hurwit also commended Canyon County’s City-County Narcotics Unit (CCNU), which is comprised of investigators from the Canyon County Sheriff’s Office and the Caldwell Police Department, for their investigation in the Myers case.
Special Assistant U.S. Attorney Kelsey Manweiler and Assistant U.S. Attorney Christian Nafzger are prosecuting the Castillo and Juarez cases. Assistant U.S. Attorney David Morse prosecuted the Myers case.
An indictment is merely an allegation or a set of allegations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Castillo, Juarez, and Mitchell indictments were part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Castillo, Juarez, and Mitchell cases were prosecuted by Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.
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Two Tuscaloosa Men Plead Guilty to COVID-19 Program FraudRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced two Tuscaloosa men this week for defrauding the Small Business Administration’s Paycheck Protection Program (PPP), announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis.
These cases are the part of a collaboration between the U.S. Secret Service and local partners to identify and focus enforcement on individuals who defrauded the systems meant to provide relief during the pandemic. The joint effort also addresses violent crime by employing, where appropriate, federal laws to prosecute violent offenders in the Northern District of Alabama.
U.S. District Court Judge L. Scott Coogler presided over the two unrelated cases. Kenzarian Lemark Harris, age 38, was sentenced to 36 months in prison for PPP fraud. Harris pleaded guilty in November 2023 to wire fraud. According to the plea agreement, in February 2021 Harris submitted false and fraudulent PPP loan applications and received a PPP loan totaling more than $20,833. Harris’ loan application included fraudulent tax and bank records and several misrepresentations – including that his business was in operation, that the business had employees for whom it paid salaries, that the PPP funds would be used to retain workers, and that the information provided in the loan applications was true and accurate.
The court separately sentenced Reginald Dewayne Rhodes, Jr., age 26, to 18 months in prison for PPP loan fraud. Rhodes pleaded guilty in October 2023 to wire fraud. According to the plea agreement, between April and June 2021, Rhodes applied for and received a fraudulent PPP loan in the amount of $11,770. Rhodes claimed to own and operate a carpet cleaning business that did not exist, and his application included fraudulent tax and bank records.
In addition to their prison sentences, the court ordered both Harris and Rhodes to pay restitution to the U.S. Small Business Administration in the full amount of the PPP loans, plus interest.
The U.S. Secret Service investigated the cases, which Assistant U.S. Attorney Jonathan “Jack” Harrington prosecuted.
Throughout the country, federal, state, and local law enforcement are on high alert to investigate reports of individuals and businesses engaging in a wide range of fraudulent and criminal behavior. For more information about these scams visit https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Okaloosa County Men Sentenced to Federal Prison for Fentanyl Overdose Death in JailRead the Press Release
PENSACOLA, FLORIDA – Chase Gary, 30, and Joshua Gervais, 28, both of Okaloosa, Florida, were sentenced to 30 years and 14 years in federal prison, respectively, after previously pleading guilty to distribution of fentanyl resulting in the death of another. Each will be required to serve a term of three years supervised release following their imprisonment. The sentences were announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Hundreds of individuals are killed every day in communities throughout our country due to the distribution of fentanyl,” said U.S. Attorney Coody. “Each of these deaths are a tragedy, robbing individuals of their promise and crippling families left behind with unimaginable grief. We remain committed to working with our law enforcement partners to vigorously prosecute traffickers for their callous disregard for human life. This sentence serves as a significant deterrent to drug traffickers and demonstrates our continued resolve to hold them accountable.”
On the morning of December 24, 2022, Gervais notified jail staff that his cellmate at the Okaloosa County Jail was not breathing. The jail staff attempted CPR and other life-saving measures without success and the cellmate was pronounced dead. The ensuing investigation revealed that Gary, who was housed in the next cell, smuggled fentanyl pills into the jail inside his body. Once inside the jail, Gary gave some of the pills to Gervais, who traded them with his cellmate for some food items. The autopsy revealed that the cellmate died of acute fentanyl poisoning.
“The ripple effect of the damage done by people who distribute fentanyl impacts virtually every facet of society,” said Okaloosa County Sheriff Eric Aden. “The potential to cause another individual’s death with each dose handed out is a constant dark threat and those responsible for doling it out will suffer the consequences of playing fast and loose with other people’s lives. We’re proud to work with the U.S. Attorney’s Office and other law enforcement partners to hold them accountable.”
“Drug overdose and poisoning deaths in our country are overwhelmingly caused by a synthetic opioid like fentanyl. We need our communities to understand that all it takes is one pill, just one fake pill made from illicit fentanyl, to end a life,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “DEA remains committed to working with our local law enforcement partners and using all of our available resources to identify the drug distributors in our communities and hold them accountable for their actions.”
This case resulted from an investigation by the Okaloosa County Sheriff’s Office with assistance from the Drug Enforcement Administration. Assistant United States Attorney Walter Narramore prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Texas Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Corpus Christi, Texas, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 29, 2024.
Darius Neal, 24, was sentenced to 18 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Neal was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in September of 2022. He pleaded guilty on March 29, 2024.
Beginning in September of 2020 and continuing until his arrest in October of 2022, Neal and five other co-conspirators knowingly conspired and agreed with each other to intentionally distribute cocaine. The conspiracy reached from Corpus Christi, Texas, to Spearfish, South Dakota. Cocaine was shipped through the U.S. Postal Service to South Dakota for the purposes of sale and distribution in South Dakota.
The Spearfish Police Department and the Unified Narcotics Enforcement Team conducted the investigation of the conspiracy. Assistant U.S. Attorney Brian J. Murphy prosecuted the case.
Neal was immediately remanded to the custody of the U.S. Marshals Service.
Texas Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Corpus Christi, Texas, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 29, 2024.
Kevin Jarero, 23, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Jarero was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in September of 2022. He pleaded guilty on March 29, 2024.
Beginning in September of 2020 and continuing until his arrest in October of 2022, Jarero and five other co-conspirators knowingly conspired and agreed with each other to intentionally distribute cocaine. The conspiracy reached from Corpus Christi, Texas, to Spearfish, South Dakota. Cocaine was shipped through the U.S. Postal Service to South Dakota for the purposes of sale and distribution in South Dakota.
The Spearfish Police Department and the Unified Narcotics Enforcement Team conducted the investigation of the conspiracy. Assistant U.S. Attorney Brian J. Murphy prosecuted the case.
Jarero was immediately remanded to the custody of the U.S. Marshals Service.
Texas Man Pleads Guilty to Tax EvasionRead the Press Release
A federal district court accepted a Texas man’s guilty plea today to evading taxes on income he earned from his business.
According to court documents, John L. Petrone owned and operated a business that sold an herbal extract known as “kratom,” along with other related products. Petrone did not file individual income tax returns for 2014 through 2019, nor did he pay income taxes for those years, despite earning hundreds of thousands of dollars from his business. During that time, Petrone attempted to evade his income taxes by opting not to withhold federal taxes from his paychecks, operating the business under different names, dealing in cash, using business bank accounts to pay for personal expenses and lying to the IRS during an audit. In addition, Petrone did not pay his business’s employment taxes.
Through his actions, Petrone caused a tax loss to the IRS of over $529,000.
Petrone is scheduled to be sentenced on June 14. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief David Zisserson and Trial Attorney Andres Chinchilla of the Tax Division are prosecuting the case, with assistance and support from the U.S. Attorney’s Office for the Western District of Texas.
Texas Man Pleads Guilty to Cyberstalking Victims in Multiple States Using Social Media AppsRead the Press Release
EL PASO, Texas – An Odessa man pleaded guilty in a federal court in El Paso to three counts of cyberstalking. Investigating agencies are seeking help from anyone who may have been victimized by Hugo Iram Cardona Jr., 21.
According to court documents, Cardona used a two-factor authentication (2FA) scheme to gain access to various young females’ Snapchat accounts to steal their intimate photographs and videos. Cardona then contacted the females using numerous social media accounts on interactive computer services, such as Instagram and Snapchat, and demanded that they “apologize,” or he would publicly release the content. In most cases, Cardona would also demand his victims video chat with him while engaging in sexually explicit conduct.
The FBI and Homeland Security Investigations (HSI) revealed at least 15 victims located in El Paso, Colorado and Arizona. The investigation determined the victims were initially contacted by Cardona from Instagram accounts “idkprii85,” “designoiram,” “juniorrriram,” “urfavpapi,” “urdvddyjunie” and “juniorrhernandez” as well as Snapchat accounts “juniepri,” “asap_juniorrr” and “juniorrriram.” Victims were also contacted from multiple TextNow numbers. The Instagram accounts, Snapchat accounts and TextNow numbers were all determined to be registered to Cardona. Cardona’s offenses occurred from on or about Aug. 15, 2020 through on or about June 1, 2023.
If you have had or know anyone who has had contact with Cardona Jr. or any of the above-listed usernames while using Snapchat, Instagram or TextNow between 2020 and 2023, please complete this victim questionnaire.
The FBI/HSI are legally mandated to identify victims of crime in federal investigations. Victims may be eligible for certain services, restitution, and other rights under federal and/or state law. Your responses are voluntary but may be useful in the federal investigation and to identify you as a potential victim. Based on the responses provided, you may be contacted by the FBI and asked to provide additional information. Victim identities are private, and case-related information is confidential.
Cardona is scheduled to be sentenced on June 3 and faces up to 10 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas, Special Agent in Charge John Morales for the FBI El Paso Field Office and Acting Special Agent in Charge Eric McLoughlin for the HSI El Paso Division made the announcement.
The FBI, HSI, El Paso Police Department are investigating the case.
Assistant U.S. Attorneys Shane Romero and Nallely Barbosa are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Superseding Indictment Charges Former Non-Profit Leader with Embezzling from Two Additional Non-ProfitsRead the Press Release
SACRAMENTO, Calif. — On Thursday, a federal grand jury returned a 16-count superseding indictment against Richard Alan Abrusci, 45, of South Lake Tahoe, charging him with 12 counts of wire fraud, one count of aggravated identity theft, and three counts of monetary transactions with proceeds of specified unlawful activity, U.S. Attorney Phillip A. Talbert announced.
According to the initial indictment in the case, from 2016 through 2021, Abrusci embezzled approximately $1.4 million from a non-profit organization that operates a chain of retail stores in California and Nevada. He did so while occupying leadership positions at the non-profit.
The superseding indictment adds charges for two additional victim non-profits. According to the superseding indictment, during the summer of 2022, Abrusci became the president of the Sacramento chapter of a national non-profit organization that pairs children with adult mentors. From October 2022 to December 2022, Abrusci embezzled nearly $50,000 from this non-profit.
In the fall of 2022, Abrusci was the chairperson of the board of directors of a non-profit organization that acts as an umbrella organization for non-profits across California that connect community members with public services. From December 2022 to January 2023, Abrusci embezzled approximately $100,000 from this non-profit.
For each of the three victim non-profits, Abrusci embezzled funds in essentially the same manner. He caused the non-profits to pay Resolution Arrangement Services (RAS) for a variety of services that RAS purportedly performed. In fact, RAS provided none of these services. Instead, RAS consisted of nothing more than a fictious business name that Abrusci registered in 2008 and a bank account he opened the same year. The payments from the non-profit organizations to RAS went into this bank account, which Abrusci controlled.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
If convicted, Abrusci faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the 12 counts of wire fraud. Additionally, he faces a maximum statutory penalty of 10 years in prison and a fine of $250,000 for each of the three counts of monetary transactions with proceeds of specified unlawful activity. Finally, he faces a consecutive two years in prison for the count of aggravated identity theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
St. Clair County Tax Preparer Accused of Fraud and False Statements on Tax ReturnsRead the Press Release
EAST ST. LOUIS, Ill. – A woman who currently operates a business in southern Illinois preparing tax returns is facing federal charges for allegedly making intentional false statements on her personal income tax returns.
A federal grand jury charged Dormeshia A. Haire, 36, of St. Charles, Missouri, with three counts of making false statements on her personal income tax returns.
“Tax preparers must work ethically and abide by federal law, or face consequences from the IRS for intentionally making false statements, committing fraud and ultimately causing the Government to lose significant tax dollars,” said U.S. Attorney Rachelle Aud Crowe.
For employment, Haire collected fees from her clients for filing tax returns and selling identity theft monitoring services at her business in St. Clair County.
According to court documents, Haire’s accusations stem from her personal 2019 tax return statement, in which she did not report any gross receipts associated with her employment. The Government estimated her actual gross receipts to be more than $43,000 in 2019.
“IRS Criminal Investigation (CI) continues to make it a top priority to track down return preparers who have demonstrated they cannot be trusted,” said Special Agent in Charge Thomas F. Murdock, St. Louis Field Office. “We take violations of U.S. tax laws very seriously as evidenced by this indictment.”
In her personal 2020 tax return statement, Haire is accused in count two of the indictment of underreporting her gross receipts. Haire reported $23,834, but the Government alleged her gross receipts to be an estimated $192,200.
Count three of the indictment alleges fraud on Haire’s 2021 tax return statement. She reported gross receipts of $50,323, but the Government estimated her gross receipts to be $323,396.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
False statement convictions are punishable by up to three years’ imprisonment and fines up to $100,000 per count.
IRS Criminal Investigation is leading the investigation, and Assistant U.S. Attorney Kathleen Howard is prosecuting the case.
Spearfish Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Spearfish, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 29, 2024.
Erasmo Briseno, 32, was sentenced to 18 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Briseno was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in September of 2022. He pleaded guilty on March 29, 2024.
Beginning in September of 2020 and continuing until his arrest in October of 2022, Briseno and five other co-conspirators knowingly conspired and agreed with each other to intentionally distribute cocaine. The conspiracy reached from Corpus Christi, Texas, to Spearfish, South Dakota. Cocaine was shipped through the U.S. Postal Service to South Dakota for the purposes of sale and distribution in South Dakota.
The Spearfish Police Department and the Unified Narcotics Enforcement Team conducted the investigation of the conspiracy. Assistant U.S. Attorney Brian J. Murphy prosecuted the case.
Briseno was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to Federal Prison for Prohibited Possession of a FirearmRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on April 1, 2024, in Sioux Falls, South Dakota.
Timothy Joseph Cervantez, age 23, was sentenced to two years and nine months in federal prison, followed by three years of supervised release. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Cervantez was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in August of 2023. He pleaded guilty on January 11, 2024.
The conviction stems from an incident on June 10, 2023, when law enforcement received a report that an individual had discharged a firearm from the passenger window of a moving vehicle while traveling through a Sioux Falls neighborhood. When officers located the subject vehicle, a pursuit ensued, first by vehicle and later by foot. Officers eventually apprehended Cervantez and located a firearm he discarded while fleeing on foot. Cervantez admitted to possessing the firearm despite being prohibited due to a prior felony conviction.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Sioux Falls Police Department. U.S. Attorney Alison J. Ramsdell prosecuted the case.
Cervantez was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Sioux Falls Man Sentenced to Federal Prison for Defrauding the Payroll Protection ProgramRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Wire Fraud. The sentencing took place on April 1, 2024.
Joshua Booth, age 27, was sentenced to 18 months in federal prison, followed by three years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Booth was indicted by a federal grand jury in August of 2023. He pleaded guilty on January 10, 2024.
The conviction stemmed from an incident in May of 2021, when Booth fraudulently submitted an application for a Paycheck Protection Program (“PPP”) loan on behalf of his purported business through Fountainhead, a third-party participating lender in the PPP. In support of his application, Booth submitted a fraudulent Schedule C, an Internal Revenue Service form for profit or loss from a business, for “Booth cleaning service,” located in Sioux Falls, South Dakota. The business did not exist and the form contained false statements, which Booth knew were false, including the gross income of the purported business. As a result of Booth’s false and fraudulent application and supporting documentation, Booth received a PPP loan in the amount of $20,833 and then used the funds for his own purposes.
This case was investigated by the Department of Homeland Security – Homeland Security Investigations. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Booth was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Duo Sentenced to Federal Prison for Making a False Statement in the Acquisition of a Firearm and Possession of a Firearm by a Prohibited PersonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced two Sioux Falls, South Dakota, men convicted of Making a False Statement in the Acquisition of a Firearm and Possession of a Firearm by a Prohibited Person.
Andrew Robert Gordon, age 38, and Deandre Arnell Burnett, age 23, were indicted for Making a False Statement in the Acquisition of a Firearm and Possession of a Firearm by a Prohibited Person by a federal grand jury in December of 2022. Each defendant pleaded guilty in 2023.
Burnett was sentenced on August 14, 2023, in Sioux Falls, for Possession of a Firearm by a Prohibited Person and ordered to serve three years and one month in federal prison, followed by three years of supervised release. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Gordon was sentenced on March 25, 2024, in Sioux Falls, for Making a False Statement in the Acquisition of a Firearm and ordered to serve three years of probation. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
In September of 2022, Burnett, a convicted felon, sought to purchase a firearm. Gordon agreed to purchase a firearm for Burnett at a premium. The entire transaction was captured on surveillance video of Burnett and Gordon at a licensed federal firearms business in Sioux Falls. Burnett picked out a gun, counted out and handed Gordon the cash, Gordon made the purchase of the firearm, then Gordon handed Burnett the firearm once they both exited the store. This transaction is commonly referred to as a “straw purchase.”
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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnehaha County Sheriff’s Department, and the Sioux Falls Police Department. Assistant U.S. Attorney Elizabeth Ebert prosecuted the case.
Burnett was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Sikeston Man with over 12 Felony Convictions Sentenced to Serve 200 Months in Prison for Gun CrimeRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen R. Clark on Friday sentenced a Sikeston, Missouri man with over a dozen criminal convictions who was caught with a firearm to 200 months in prison.
Milton Napoleon Porter, 41, pleaded guilty in November to the offense of being a previously convicted felon in possession of a firearm and admitted knowing that he was prohibited from possessing a gun because of his status as a convicted felon.
According to court documents, officers with the Sikeston Department of Public Safety were dispatched to a reported vehicle break-in on East Kathleen Street last July. Porter was located at the scene. When he saw the officers, Porter jumped over a fence and ran away. During a foot pursuit, Porter tossed a loaded 9mm semi-automatic pistol on the ground. He was apprehended moments later. A criminal background check revealed Porter had 13 felony convictions, including multiple convictions for domestic assault.
After serving his sentence, Porter will be placed on supervised release for a period of five years. This case was investigated by the Sikeston Department of Public Safety. Assistant U.S. Attorney Jack Koester handled the prosecution for the government.
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.
Sarasota Woman Pleads Guilty to Making A False Statement in A Tax ReturnRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Olga Dedovets has pleaded guilty to one count of making a false statement in a tax return. Dedovets faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Dedovets co-owned and helped to operate a roofing business based in the Middle District of Florida. In November 2018, Dedovets willfully made a false statement in her Individual Income Tax Return Form 1040 for tax year 2017, then signed it, and caused that return to be filed with the Internal Revenue Service. The false statement in that tax return related to income that she and the other owner of the roofing business had earned from that business in 2017. Dedovets failed to report to her tax preparer more than $1 million in income on that 2017 Form 1040, which was income derived from roofing work. Most of that income was concealed in bank accounts which Dedovets did not report to the tax preparer.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Santa Fe Man Pleads Guilty to Two Counts of Assaulting a ChildRead the Press Release
ALBUQUERQUE – A Santa Fe man pleaded guilty in federal court to two counts of assaulting a child under the age of 16.
According to court documents, On June 19, 2021, Luis Xavier Rael, 36, was supervising his girlfriend’s 12-year-old son, who is a member of the Pueblo of Nambe. Rael made the child do a series of physical exercises, which he did not to complete to Rael’s satisfaction. Rael then hit the child with a tree branch and a belt on his butt, lower back, and upper legs.
At sentencing, Rael faces up to two years in prison. He may also be ordered to pay restitution to his victim for expenses related to the crime.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Bureau of Indian Affairs investigated this case with assistance from the Santa Clara Police Department. Assistant U.S. Attorney Zachary Jones is prosecuting the case.
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Real estate developer convicted for spending over $500,000 of investor’s funds on vacations and mortgageRead the Press Release
HOUSTON – A 47-year-old Houston resident has pleaded guilty to wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
Salek admitted to his involvement in a fraudulent scheme to obtain more than $1 million and falsely informing an investor the funds would be used to develop real estate.
During the plea, Walter Salek admitted between 2019 and 2021, he entered into agreements with an investor to develop real estate in the Houston area. As per the agreement, Salek was to contribute real estate, and the investor was to provide cash to develop the properties. Once developed, properties were to be either leased or sold.
The investor believed the funds would be used for the developments and deposited over $1 million into business bank accounts that Salek controlled through use of interstate wire communications. However, Salek diverted at least $571,000 of the investment funds for his own personal use on mortgage payments and luxury vacations.
U.S. District Judge Sim Lake will impose sentencing July 11. At that time, Salek faces up to 20 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Rapid City Man Sentenced to ProbationRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Magistrate Judge Daneta L. Wollmann has sentenced a Rapid City, South Dakota, man convicted of Assault on a Federal Officer, a misdemeanor crime. The sentencing took place on April 3, 2024.
Shadrach Franklin Howie, 40, was sentenced to three years of probation, 100 hours of community service, a $2,500 fine, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Howie was indicted for Assault on a Federal Officer by a federal grand jury in July of 2023. He pleaded guilty on January 5, 2024.
The conviction stems from Howie resisting and impeding a park ranger on February 2, 2021. At the time, the ranger was trying to take Howie into custody after a high-speed pursuit through Wind Cave National Park.
This case was investigated by the National Park Service. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Prison Terms Handed Down to the Trio Involved in Shooting Death of 17-Year-OldRead the Press Release
WASHINGTON – Trey Prillerman, 19, Nelfy Hernandez, 20, both of Washington, D.C., and Deandre Levy, 22, of Gaithersburg, MD, were sentenced today for their roles in an August 2020 drive-by shooting that claimed the life of 17-year-old Taijhon Wyatt. The Honorable Maribeth Raffinan sentenced Prillerman to 17 years in prison; Hernandez to 13 years in prison; and Levy to eight years in prison.
Defendants Prillerman and Hernandez pleaded guilty, in August of 2023, to second degree murder while armed; Levy pleaded guilty to voluntary manslaughter while armed. Hernandez, additionally, pleaded guilty to felony assault for assaulting a DYRS guard in a separate incident.
According to the government’s evidence, on August 10, 2020, at approximately 9:30 p.m., the victim, Taijhon Wyatt, was walking with a group of friends in an alley near 9th and Kennedy St., NW. A stolen vehicle driven by defendant Prillerman arrived at the mouth of the alley where defendants Hernandez and Levy opened fire into Taijhon’s group, killing him and wounding another individual who was with him. The three defendants fled the area in the stolen car, which was subsequently recovered outside of Baltimore. Officers arrived a short time after the shooting and discovered the teenager suffering from gunshot wounds. He died at the scene.
This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for D.C. The case was prosecuted by Assistant U.S. Attorneys Rachel Forman and Dennis Clark.
Previously Convicted Killer from Maryland Sentenced to 19.5 Years for Drug Trafficking in D.C. and Discharging a MachinegunRead the Press Release
WASHINGTON – Trenton Robinson, 28, of District Heights, Maryland, was sentenced today to 234 months in prison for his role as an enforcer for a D.C. street crew whose members distributed more than 100 kilograms of marijuana, as well as oxycodone and codeine, and used, carried, brandished, and discharged firearms during their drug trafficking crimes in the Congress Heights neighborhood of Southeast Washington, D.C.
The sentencing was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division, Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Washington Field Division, and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
“This drug trafficker used a machine gun to spray bullets in the direction of a car passing through his drug dealing territory,” said U.S. Attorney Graves. “The hail of gunfire, which injured one person, miraculously did not kill anyone. Federally prosecuting those who, like this defendant, are driving violence is critical to protecting our community.”
"Robinson not only distributed drugs but also used illegal firearms to fend off perceived threats to his co-conspirators and what they claimed as their territory,” said FBI Special Agent in Charge Scott. “His lengthy sentence is the result of coordination between the FBI and our federal and local partners. We will continue to counter violent crime as a team to ensure that we prevail in bringing violent recidivists to justice."
“This individual will learn a costly lesson as he serves a lengthy prison sentence. The usage of machine guns on our streets is sadly something that has gained much more traction since 2020,” said ATF Special Agent in Chargeailimai. “We hope that sentences such as this will serve as a deterrence to others seeking to possess and use illegal firearms more specifically machine gun conversion devices/ switches in our communities. We will continue to work alongside our partners to ensure that individuals like Robinson are held accountable for their actions.”
Robinson, aka “Zulu,” pleaded guilty before U.S. District Court Judge Amy Berman Jackson on October 24, 2023, to one count of brandishing a firearm in relation to drug trafficking, and one count of discharging a firearm in relation to drug trafficking. In addition to the 19.5-year prison sentence, Judge Berman Jackson ordered Robinson to serve five years of supervised release.
Robinson, who regularly carried a fully automatic AR-Pistol machinegun, admitted as part of his plea agreement that he discharged that machinegun at the driver of a vehicle passing through the crew’s drug dealing territory on Easter Sunday, April 12, 2020. He also admitted that he and his crew possessed between 25 and 99 firearms between June of 2019 and September of 2020.
Robinson committed the charged crimes while he was on supervised parole for second degree murder in Montgomery County. On December 21, 2010, Robinson and an accomplice murdered a 19-year old man while attempting to rob him.
This case was investigated by the FBI, ATF, and MPD. It was prosecuted by Assistant U.S. Attorney James B. Nelson.
Possession of Machine Guns Results in Federal Prison Sentences for Two MenRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced the sentencing of two men for illegally possessing machine guns. Tedric Deshun Ratcliff, 30, of Shreveport, and Elijah D. Brown, 24, of Fort Worth, Texas, have been sentenced by United States District Judge S. Maurice Hicks, Jr.
Tedric Deshun Ratcliff was sentenced to 57 months in prison and Elijah D. Brown was sentenced to 42 months in prison. Both defendants will serve 3 years of supervised release following their release from prison. The sentence imposed by Judge Hicks for Brown was an upward departure from the proposed 18-24 month guideline range based on the United States Sentencing Commission’s guidelines.
According to information presented in court, on September 23, 2022, officers with the Shreveport Police Department responded to an armed persons call at the Peach Street Apartments in Shreveport. Upon arrival, officers observed an individual carrying an AR-style rifle get into the rear driver’s side of a vehicle in the parking lot of the apartment complex. The officers made contact with the armed passenger and asked him to step out of the vehicle and observed the AR-style rifle on the floorboard. Officers then ordered the driver, later determined to be Ratcliff, out of the vehicle. A search of the vehicle was conducted, and officers found three firearms, a Glock .40 caliber pistol with an extended magazine, a Glock 9mm pistol with extended magazine, and the Palmetto Arms 7.62 AR rifle which had previously been seen by officers. Through their investigation, officers learned that two of the firearms had been reported as stolen. The Palmetto Arms AR rifle was found to have a drop-in auto sear, a conversion device, inserted inside of it and was determined to be registered to Brown.
In addition, officers located a small backpack containing prescribed medication and identification for Brown. Under the backpack was a tan Glock 19 9mm pistol with a Glock switch, a conversion device, installed. The firearm was registered to Brown. Law enforcement agents retrieved photos from Brown’s phone of him holding the tan Glock firearm with the switch installed. A records search of the National Firearms Registration and Transfer Record (NFRTR) showed that the Glock switches were not registered, and Brown had no other registrations.
Brown was charged with possession of a machine gun and possession of a firearm not registered to him in NFRTR. Ratcliff was charged with unlawful possession of a machine gun.
“These sentences imposed by the court should send a strong message to those in our community that individuals who possess these illegal machine guns will get stiff sentences,” said U.S. Attorney Brandon B. Brown. “Together with our federal, state and local law enforcement partners, we will continue to weed out these bad seeds in our communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Shreveport Police Department and prosecuted by Assistant United States Attorney J. Aaron Crawford.
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 make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Porcupine Man Sentenced to Eight Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Porcupine, South Dakota, man convicted of Involuntary Manslaughter and Assault Resulting in Serious Bodily Injury. The sentencing took place on March 29, 2024.
Robert Cottier, 65, was sentenced to two eight-year terms in federal prison, to run concurrently, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund and restitution. Eight years is the statutory maximum for involuntary manslaughter.
Cottier was indicted for Involuntary Manslaughter and four counts of Assault Resulting in Serious Bodily Injury by a federal grand jury in May of 2023. He pleaded guilty on January 3, 2024.
The convictions stem from Cottier operating a motor vehicle on February 18, 2023, while under the influence of alcohol, causing a head-on collision with another vehicle. The collision killed one man and injured four others, three of which were minors. Cottier’s BAC was approximately between .128% and .198% at the time of the collision.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Cottier was immediately remanded to the custody of the U.S. Marshals Service.
Pontotoc County Resident Sentenced to 19 Years for Assault and Explosives OffensesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that William Craig Hollars, age 44, of Pontotoc County, Oklahoma, was sentenced to 235 months in prison for a prolonged assault ending at the Chickasaw Nation Treasury Building in September of 2022.
Hollars was sentenced to 115 months in prison for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 115 months for one count of Assault of a Dating Partner in Indian Country, 115 months for one count of Attempt to Damage and Destroy by Explosive, and 115 months for one count of Making a Firearm in Violation of the National Firearms Act. These sentences are set to be served concurrently. Hollars was sentenced to an additional 120 months in prison for one count of Carrying an Explosive During the Commission of a Felony, to be served consecutive to the other sentences.
The charges arose from investigations by the Chickasaw Nation Lighthorse Police Department, the Oklahoma Highway Patrol Bomb Squad, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 7, 2023, Hollars pleaded guilty to the charges. On September 6, 2022, Hollars strangled the victim, threatened her with a homemade bomb, chased her as she fled to the Chickasaw Nation Treasury Building, struck her in the back of the head, dragged her from the building as she sought shelter, then attempted to light the bomb, with intent to injure her and damage the Treasury Building.
The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Hollars will remain in 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 Kevin Gross represented the United States.
Pine Ridge Man Sentenced for Assaulting OfficerRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Assault on a Federal Officer. The sentencing took place on March 29, 2024.
Gregory Wayne Brewer, Jr., 25, was sentenced to two years and eleven months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Brewer was indicted for Assault on a Federal Officer by a federal grand jury in October of 2023. He pleaded guilty on January 5, 2024.
The conviction stems from Brewer assaulting an Oglala Sioux Tribe Department of Public Safety officer after the officer had arrested him for an unrelated matter.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Brewer was immediately remanded to the custody of the U.S. Marshals Service.
Picayune Man Sentenced to over 13 Years in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Picayune man was sentenced to 159 months in prison for conspiracy to possess with intent to distribute methamphetamine.
Corrie Montrell Hinton, 46, was sentenced in U.S. District Court in Gulfport.
According to court records, in 2015, an investigation began into a large-scale drug trafficking organization in Picayune, Mississippi. In 2019, DEA agents in Imperial County California along with DEA agents in Gulfport conducted an undercover purchase of five pounds of methamphetamine and arrested two drug traffickers in Riverside County California. One of those traffickers was identified as a source of supply for a drug trafficking conspiracy operating in Picayune. Cellphones belonging to one of the traffickers yielded communication between a trafficker and Corrie Montrell Hinton involving drug transactions, parcels, and account numbers for money transfers.
Hinton pled guilty on October 4, 2023, to conspiracy to possess with intent to distribute methamphetamine.
U.S. Attorney Todd W. Gee and Special Agent in Charge Steven Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and Homeland Security Investigations.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
Ocean County Businessman Sentenced to 30 Months in Prison for Failing to Pay over $10 Million in Payroll TaxesRead the Press Release
TRENTON, N.J. – An Ocean County man was sentenced today to 30 months in prison for failing to pay over $10 million in payroll taxes stemming from his ownership of several businesses, U.S. Attorney Philip R. Sellinger announced.
Josef Neuman, 37, of Lakewood, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with willful failure to pay over payroll taxes for one of his businesses in 2018. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Neuman was chief executive officer of a business in Lakewood. The company provided administrative services to operators of nursing homes and other health care facilities, including at least approximately 20 entities co-owned and operated by Neuman. As a person who controlled the companies’ financial affairs, Neuman had the responsibility to collect, truthfully account for, and pay over to the IRS the companies’ payroll taxes. During tax years 2017 and 2018, Neuman failed to pay over to the IRS over $10 million in payroll taxes owed by the companies. Neuman knew that payroll taxes were due and owing to the IRS at this time, but continued to pay other business expenses and employee salaries, instead of the unpaid taxes, while tax liabilities continued to accrue.
In addition to the prison term, Judge Shipp sentenced Neuman to two years of supervised release and ordered restitution of $11.2 million.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Katherine Romano of the Health Care Fraud Unit in Newark.
North Carolina Man Who Caused Dubuque Man’s Death Sentenced to over 30 Years in PrisonRead the Press Release
A North Carolina man who sold fentanyl to a Dubuque, Iowa, man who overdosed and died was sentenced today to more than 30 years in prison.
James Adam Earwood, age 39, of Rutherfordton, North Carolina, received the prison sentence after a jury found Earwood guilty on October 5, 2023, of distribution of a controlled substance, heroin and fentanyl, causing the death of the victim.
Evidence introduced at trial and sentencing showed that on November 18, 2021, Earwood mailed a package of heroin and fentanyl to the victim. Earwood was living in North Carolina at the time and the victim was living in Dubuque. The victim used the heroin and fentanyl and overdosed in the parking lot of a local business. The victim survived the overdose. One month later, on December 17, 2021, the victim received another package of heroin and fentanyl in the mail from Earwood. The victim used the heroin and fentanyl and died shortly thereafter. He was found deceased by hotel staff in a hotel in Dubuque.
Earwood operated what he deemed to be a business selling fentanyl for at least a year. The business had a name, which he marketed, and even included the business’s logo in packages of fentanyl that he sold. Earwood marketed his product to a private Facebook group for recovering heroin addicts. He asked his customers to leave positive reviews of his products. Earwood bragged about the quality of his product and even used the victim’s death to show how strong his product was. He would ship his product nationwide using the US Postal Service or would leave the product for local customers in discreet locations so the customer could later find it.
Earwood was sentenced in Cedar Rapids by Chief United States District Court Judge C.J. Williams. Earwood was sentenced to 365 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery, Patrick Reinert, and Devra Hake, and was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the United States Postal Inspection Service, the Dubuque Drug Task Force which includes the Dubuque County Sheriff’s Office and the Dubuque Police Department, and the Rutherford County North Carolina Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1024.
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New Jersey Man Accused of Evading over $2 Million in Federal TaxesRead the Press Release
A New Jersey man was arrested today on an indictment returned by a federal grand jury in Trenton, New Jersey, charging him with tax evasion and obstructing the IRS.
According to the indictment, in 2015 and 2016, Matthew Tucci, of West Long Branch, received millions of dollars in income from purported refunds by the Customs and Tax Administration of the Kingdom of Denmark. Tucci allegedly filed federal tax returns for those years that reported he owed over $2 million in taxes, but included no payment with his returns. Instead, Tucci allegedly sought to evade IRS efforts to collect the taxes due. He allegedly purchased more than $7.6 million-worth of real estate and attempted to conceal his ownership of these assets from the IRS by, among other things, transferring title to some of these properties to nominees. He also allegedly made false statements to the IRS and withheld important facts from the IRS concerning his financial resources and his ability and intent to pay.
If convicted, Tucci faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS Criminal Investigation and the FBI are investigating the case.
Senior Litigation Counsel Nanette Davis and Trial Attorney Catriona M. Coppler of the Justice Department’s Tax Division and Assistant U.S. Attorney Eric Boden for the District of New Jersey, Attorney in Charge of the Trenton Office, are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Haven Man Charged with Firearm and Narcotics OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and New Haven Police Chief Karl Jacobson today announced that a federal grand jury in New Haven has returned a three-count indictment charging SHAYQUAN GRAY, also known as “Scooby,” 23, of New Haven, with firearm and ammunition possession and cocaine distribution offenses.
The indictment was returned on March 26, 2024, and Gray appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and pleaded not guilty to the charges. He has been detained since his arrest on March 14, 2024.
As alleged in the indictment and statements made in court, on March 14, 2024, New Haven Police observed Gray, who had an active state arrest warrant, participating in a drug transaction. Gray was arrested, and he was found in possession of 80 individual bags of cocaine, a Polymer 80 “ghost gun” loaded with seven rounds of ammunition, and more than $1,200 in cash.
It is alleged that Gray’s criminal history includes multiple felony convictions, including a state conviction for a firearm offense. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Gray with possession with intent to distribute cocaine, which carries a maximum term of imprisonment of 20 years; unlawful possession of ammunition by a felon, which carries a maximum term of imprisonment of 15 years; and possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive term of imprisonment of at least five years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Christopher Lembo.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Nevada Woman Found Guilty of Meth TraffickingRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a jury has convicted Dawn Eagle Feather Floyd, age 45, of Sparks, Nevada, of Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance following a four-day jury trial in federal district court in Pierre, South Dakota. The verdict was returned on March 29, 2024.
The charges carry a mandatory minimum term of five years in federal prison and a maximum penalty of 40 years in federal prison and/or a $5,000,000 fine, at least four years up to life of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Floyd was indicted by a federal grand jury in August of 2020. A superseding indictment was filed in May of 2023.
Between January 1, 2019, and January 1, 2020, Floyd, knowingly and intentionally, agreed with others to distribute and possess with intent to distribute 50 grams or more of methamphetamine on the Rosebud Sioux Indian Reservation. Floyd conspired with others to travel to Colorado where she obtained methamphetamine and brought it back to her home in Valentine, Nebraska, and then onto the Rosebud Reservation for distribution. Law enforcement recovered over 120 grams from Floyd’s residence, vehicle, and person during the investigation.
This case was investigated by the FBI, the Rosebud Sioux Tribe Law Enforcement Services, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Valentine Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for June 24, 2024. The defendant was remanded to the custody of the U.S. Marshals Service.
Multi Convicted Serial Thief Sentenced to Federal Prison for Crime SpreeRead the Press Release
TULSA, Okla. – Today, U.S. District Judge John D. Russell sentenced Brett Matthew Chamberlain, 41, for seven counts of Bank Fraud, five counts of Aggravated Identity Theft, two counts of Theft in Indian Country, being a Felon in Possession of a Firearm and Ammunition, and Brandishing a Firearm During and in Relation to a Crime of Violence in Indian Country. Chamberlain was sentenced to 240 months imprisonment, followed by 5 years of supervised release. Judge Russell further ordered Chamberlain to pay $10,142.20 in restitution.
According to court documents, between August 2022 through December 2022, Chamberlain broke into more than 30 vehicles and stole items of value. He would make unauthorized purchases using the vehicle owners’ property, such as credit cards, bank cards, bank checks, and personal identification. Using the victims’ funds and personal identifying information, Chamberlain went on shopping sprees at Home Depot and Target, refueled his vehicle, and reloaded minutes on his prepaid cellphone. Several victims had property stolen valued at more than $1,000, including one firearm.
In December 2022, the Tulsa Police Department pulled over a vehicle flagged in the Flock camera system as a suspect vehicle in multiple burglaries. Chamberlain was driving the vehicle and a stolen firearm was found inside. Chamberlain was not allowed to possess a firearm after being convicted of more than 22 felonies in Oklahoma.
Additionally, Chamberlain further admitted to firing at least two shots in the direction of a victim while they were inside their car. He is a citizen of the Cherokee Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI and Tulsa Police Department investigated the case. Assistant U.S. Attorney Elliot Anderson prosecuted the case.
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. For more information about PSN, please visit Justice.gov/PSN.