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3 April 2024
Sex Offender Who Possessed Child Pornography Sentenced to Federal PrisonRead the Press Release
PROVIDENCE – A Woonsocket man who admitted to collecting thousands of images and nearly 200 videos of child pornography, at a time that he was already a registered sex offender, has been sentenced to more than three years in federal prison, announced United States Attorney Zachary A. Cunha.
Matthew S. Hathaway, 26, of Woonsocket, pleaded guilty in U.S. District Court on January 4, 2024, to a charge of possession of child pornography involving prepubescent minors. He was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to 42 months of incarceration to be followed by eight years of federal supervised release.
According to documents filed with the court, a member of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force received information from the National Center for Missing and Exploited Children that an IP address, later determined to originate from a Woonsocket residence where Hathaway resided, was being used to download and transfer child pornography.
On March 16, 2023, members of the ICAC Task Force executed a court-authorized search warrant at Hathaway’s residence and seized a desktop computer and cell phone belonging to Hathaway. A forensic audit of the electronic devices by Homeland Security Investigations determined that the devices contained 7,984 images and 192 videos of child sexual abuse material.
The case was prosecuted by Assistant U.S. Attorneys Julie M. White and Dulce Donovan.
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Schenectady Man Sentenced on Drug ConvictionsRead the Press Release
ALBANY, NEW YORK – Hason Harres, age 47, of Schenectady, New York, was sentenced today to serve 57 months in federal prison for possessing methamphetamine and fentanyl with the intent to distribute.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) New York Division made the announcement.
As part of his previous guilty plea, Harres admitted to possessing and/or distributing more than 1,400 counterfeit oxycodone pills containing fentanyl, as well as 92 grams of methamphetamine. At the time of the offense, Harres was on post-release supervision for a state drug conviction. Senior U.S. District Judge Lawrence E. Kahn also imposed a 4-year term of supervised release and forfeiture of $13,800.00.
The DEA investigated the case, and Assistant U.S. Attorney Jonathan S. Reiner prosecuted the defendant.
San Pedro Man Sentenced to 30 Years in Prison for Attempting to Persuade Minor to Produce Sexually Explicit Photos of HerselfRead the Press Release
LOS ANGELES – A South Bay man has been sentenced to 360 months in federal prison for attempting – via text messages and audio calls – to convince an 11-year-old girl to produce child sexual abuse material (CSAM), the Justice Department announced today.
Anthony Frank Scovotto, 58, of San Pedro, was sentenced on Monday by United States District Judge Dale S. Fischer.
Scovotto pleaded guilty in May 2023 to one count of attempted production of child pornography.
In April and May of 2017, Scovotto contacted the victim, whom he believed was 12 years old, via audio calls and text messages. To convince the victim to produce CSAM, Scovotto told the victim that he loved her and that they were “meant for each other.”
Scovotto pretended to be 18 years old, and he instructed the victim to contact him in an online chat room. While they were both in the chat room, Scovotto asked the victim to take off her clothes. In text messages, Scovotto asked the victim to send him sexually explicit photographs of herself.
In his plea agreement, Scovotto admitted that in 2017 he separately contacted two additional victims online, both of whom were minors. He asked both victims to send him sexually explicit photographs of themselves, which they did.
“[Scovotto] preyed upon vulnerable pre-teen and adolescent girls by posing as a teenager or young man and pretending to love and care for them,” prosecutors argued in a sentencing memorandum. “He betrayed their trust and manipulated them for his sexual pleasure.”
In arguing in favor of the 30-year prison sentence, prosecutors noted that Scovotto’s criminal history includes a felony conviction in 2001 in Orange County Superior Court for attempted lewd and lascivious acts upon a child younger than 14 years old.
The FBI investigated this matter.
Assistant United States Attorneys Claire E. Kelly and Scott M. Lara of the Violent and Organized Crime Section prosecuted this case.
Rhode Island Man Sentenced to More Than Two Years in Prison for Fentanyl ConspiracyRead the Press Release
BOSTON – A Providence, Rhode Island man was sentenced today in federal court in Boston for his involvement in a conspiracy to distribute fentanyl.
Yeury Garcia-Rodriguez, 32, was sentenced by U.S. District Court Judge Allison D. Burroughs to 25 months in prison and two years of supervised release. On May 9, 2023, Garcia-Rodriguez pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl.
Between May 2021 and June 2022, Garcia-Rodriguez distributed fentanyl on at least four occasions to a government cooperating source on behalf of his co-defendant and co-conspirator Estarlin Ortiz-Alcantara. In addition to delivering fentanyl for Ortiz-Alcantara, on two occasions, the defendant separately sold fentanyl to the cooperating source. The defendant told the cooperating source that he cooked, pressed, packaged and delivered fentanyl for Ortiz-Alcantara. Approximately 36 grams of fentanyl was seized from the defendant’s residence on July 19, 2022.
Estarlin Ortiz-Alcantara pleaded guilty on Dec. 14, 2024 and is scheduled to be sentenced on July 9, 2024.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Special assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sheriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort 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.
The details contained in the charging document are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Quincy Man Pleads Guilty to Hate CrimeRead the Press Release
BOSTON – A Quincy man pleaded guilty today to committing a hate crime.
John Sullivan, 78, pleaded guilty to one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 26, 2024. Sullivan was indicted by a federal grand jury in February 2023.
On Dec. 2, 2022, Sullivan encountered a Vietnamese family he had never met before outside a post office in Quincy. Sullivan yelled to the family, which included three children under the age of 12, to “go back to China,” and threatened to kill them. He then drove his car into one of the family members, causing the victim to land on the hood of the moving car and remain there while the car moved approximately 200 feet. After Sullivan stopped the car and the victim slid off, Sullivan again drove his car forward, hitting the victim a second time causing the victim to fall into a construction ditch and suffer injury.
“The actions of John Sullivan are appalling and a sad reflection of intolerance and hate that is far too prevalent in our society. Sullivan violently assaulted an individual in front of children because of his race and national origin,” said Acting United States Attorney Joshua S. Levy. “This behavior will never be tolerated and we will continue to aggressively prosecute hate crimes.”
“This defendant’s hate-filled attack not only seriously injured the victim, but also traumatized three children in his family, solely because they were Asian American,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No person in this country should have to fear for their own or their family’s safety because of who they are or where they are from. The Justice Department is determined to stem the rising tide of hate crimes and will vigorously prosecute those who commit them.”
“John Sullivan’s hateful and violent conduct, motivated by racial intolerance, was intended to physically harm the victim in this case, and instill fear within the Asian community in Quincy,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI and our partners simply won’t tolerate crimes spurred by hate. While we all have the right to believe whatever we want, when those views lead to violence, that’s a different and dangerous story. We urge anyone who is a victim or witness to a hate crime, to report it to us at 1-800-CALL-FBI or tips.fbi.gov.”
The charge provides for a maximum sentence of 10 years, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, AAG Clarke and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Quincy Police Department and the Norfolk County District Attorney’s Office. Assistant U.S. Attorney Torey B. Cummings of the Civil Rights & Human Trafficking Unit and Tara Allison of the Department of Justice’s Civil Rights Division are prosecuting the case.
Pocatello Doctor Pays $96,000 to Settle Allegations That He Wrote Unlawful PrescriptionsRead the Press Release
POCATELLO – Dr. Gerald Knouf, a family medicine doctor formerly of Pocatello, Idaho, agreed to pay $96,000 to resolve allegations that he wrote unlawful prescriptions, prescribed dangerous combinations of drugs, and billed Medicare and Medicaid for services that were not performed, U.S. Attorney Josh Hurwit announced today. The settlement also restricts Dr. Knouf’s DEA registration for five years.
According to the settlement agreement, the government alleged that Dr. Knouf wrote prescriptions for controlled substances that lacked a legitimate medical purpose and/or were issued outside the usual course of professional practice between 2018 and 2023. That included prescriptions for dangerous combinations of drugs, including overlapping prescriptions for opioids, benzodiazepines, and muscle relaxers. The government alleged the Dr. Knouf’s actions violated the Controlled Substances Act (CSA) and the False Claims Act (FCA).
“We will continue to hold prescribers accountable for writing unlawful prescriptions for opioids and other controlled substances wherever such conduct is found,” said U.S. Attorney Hurwit. “Cases like this demonstrate my office’s ongoing commitment to protecting our community from drug-related harms no matter who the offender might be, even if, as in this case, the offender is a medical professional.”
“The core mission of the Drug Enforcement Administration is to protect our communities, not just from illicit drug dealers, but also from the health care professionals who might misuse their positions of special trust to cause harm,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The settlement in this case clearly shows that the DEA and our partners will hold everyone, including medical providers, accountable for their actions when they threaten the safety of our communities.”
“Medical professionals who prescribe dangerous amounts of controlled substances put their patients at severe risk of overdose and undermine our efforts to halt the opioid crisis,” said Steven J. Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to curb such irresponsible prescribing and billing schemes at every turn.”
This matter was investigated jointly by the U.S. Attorney’s Office, the Drug Enforcement Administration, and the U.S. Department of Health and Human Services, Office of the Inspector General, with additional assistance provided by the Idaho Board of Pharmacy, the Idaho State Police, the Pocatello Police Department, and the Idaho Department of Correction.
The claims resolved by this settlement are allegations only and there has been no admission or determination of liability.
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Pittsburgh Resident Sentenced to Seven Years in Prison for Possessing with Intent to Distribute Heroin/Fentanyl MixRead the Press Release
PITTSBURGH, Pa. – A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court on April 2, 2024, to 84 months of imprisonment, to be followed by six years of supervised release, on his conviction of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman IV imposed the sentence on Randy Cross, 40.
According to information presented to the Court, Pittsburgh Bureau of Police officers seized 33 bricks, 11 bundles, and three plastic storage bags containing a mixture of heroin and fentanyl, as well as $11,260, from Cross’s residence in March 2021.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration and Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Cross.
Philadelphia Man Sentenced to More Than 13 Years in Prison for Robbing a Pizza Parlor in Mayfair and Shooting Two EmployeesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kaleb Bridges, 20, of Philadelphia, PA, was sentenced today by United States District Court Judge Gerald A. McHugh to 166 months’ imprisonment and five years of supervised release for robbing a local restaurant and shooting and wounding two employees.
On December 6, 2023, Bridges pleaded guilty to charges of Hobbs Act robbery and carrying, using, and discharging a firearm during and in relation to a crime of violence.
The charges stem from Bridges’ actions on the night of March 8, 2023, when he entered the Mayfair Pizza restaurant at 7424 Frankford Avenue just before closing time. He produced a gun and demanded that an employee empty the cash register and place the money into a bag. After she had done so, Bridges pulled away before the employee could release the bag. Bridges then shot the employee (Victim #1) in the shoulder. She ducked down below the counter and Bridges fired another round, which struck a refrigerator.
The employee’s father, who owns the business, witnessed what happened. As Bridges made his way to the door with the bag of stolen money, the employee’s father then struggled with Bridges in an effort to keep him from fleeing. During the struggle, Bridges’ gun fell to the floor. Bridges retrieved and fired it, this time striking the employee’s mother (Victim #2), the co-owner of the pizza parlor. At that point, the employees were able to gain control of the defendant and hold him until the police arrived and took him into custody. Police officers rushed the shooting victims to the hospital, where Victim #1 was treated and released within a few hours. Victim #2 spent several weeks in the hospital recovering from her injuries.
“Kaleb Bridges’ decision to rob this family business at gunpoint and shoot two members of that family was life-changing for the victims,” said U.S. Attorney Romero. “While this crime occurred in a matter of minutes, it will long stay with the two women he shot and the witnesses who struggled to restrain him. It’s also changed the course of Bridges’ life, which, for the next decade-plus, will be lived locked away in prison.”
“Armed robberies threaten Philadelphia’s business and communities, and ATF Philadelphia Field Division is committed to working with the Philadelphia Police Department and our other partners to investigate, prosecute and prevent such crimes,” said Eric J. DeGree, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Philadelphia Field Division. “We regularly work together, sharing the ATF’s unique forensic and investigative tools, to ensure justice for the victims and to make our communities safer through federal prosecution.”
“The brazen violence displayed by Kaleb Bridges is a threat to the safety of every person in our city,” said Philadelphia Police Commissioner Kevin J. Bethel. “This case is a chilling example of how a robbery can escalate into a shooting, leaving innocent people injured and a community shaken. I applaud the collaborative efforts by the ATF, our detectives, and the U.S. Attorney's Office in holding this defendant accountable for his actions. This sentence sends a clear message that we will not tolerate this kind of violence in our neighborhoods, and that we will work tirelessly to bring those who commit such crimes to justice.”
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and prosecuted by Assistant United States Attorney Robert E. Eckert.
Pennsylvania Man Sentenced for Sex Offender Registration ViolationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Larry Collins Bryan, 65, of Waynesburg, Pennsylvania, was sentenced today to 84 months for failing to update his sex offender registration.
According to court documents and statements made in court, officers were called to an apartment complex in Morgantown, West Virginia, for an altercation between Bryan and a female tenant in the complex who believed Bryan had inappropriately touched her child. Bryan was convicted of statutory rape of a minor in 1992 in Greene County, Pennsylvania, which requires him to register for life as a sex offender. Bryan had been living at the Morgantown complex for more than a year but had not registered as a sex offender in the state of West Virginia.
Chief U.S. District Judge Thomas S. Kleeh found that Bryan committed the offense of third-degree sexual abuse against the child in violation of West Virginia law after the mother’s allegation was substantiated by a surveillance video.
Bryan will report for five years of supervised release following his prison sentence.
Assistant U.S. Attorney Sarah Wagner prosecuted the case on behalf of the government.
This case was investigated by the United States Marshals Service and the West Virginia State Police.
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Pascagoula Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, MS – A Pascagoula, Mississippi man pleaded guilty to possession with intent to distribute 55.3 grams of methamphetamine.
Timothy Harper, 42, pled guilty in U.S. District Court in Gulfport.
According to court documents, on October 24, 2023, a clear plastic bag containing suspected methamphetamine was purchased from Timothy Harper in Pascagoula. A subsequent laboratory test of the substance confirmed that Harper sold 55.3 grams of methamphetamine at 98% purity.
Harper pleaded guilty to possession with intent to distribute a controlled substance. He is scheduled to be sentenced on August 14, 2024, and faces up to twenty years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation and the South Mississippi Metro Enforcement Team.
Assistant U.S. Attorney Lee Smith is prosecuting the case.
Oxford Man Sentenced to 17 Years in Federal Prison for Receiving Child PornographyRead the Press Release
DAVENPORT, Iowa – An Oxford man was sentenced on March 27, 2024, to 17 years in federal prison for receiving child pornography.
According to public court documents and evidence presented at sentencing, Corey Lester Schlemme, 48, set up multiple Facebook accounts under various names to send and receive child pornography. After receiving a cybertip from the National Center for Missing and Exploited Children a subsequent search of Schlemme’s Oxford residence confirmed that he was sending and receiving child pornography. Review of seized evidence also determined that Schlemme represented himself as a minor female in fraudulent Facebook accounts to persuade a minor victim to produce and send him child pornography. Over the course of nine months, Schlemme exchanged thousands of messages with the minor and solicited numerous videos and images of the minor engaged in sexually explicit acts. At the time of this investigation, Schlemme was a coach for the Clear Creek Amana School District.
After completing his term of imprisonment, Schlemme will be required to serve five years of supervised release. There is no parole in the federal system. Schlemme was also ordered to pay a special assessment of $5,000.00.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Johnson County Joint Forensic Analysis Cyber Team, with assistance from the Iowa Division of Criminal Investigation, the Department of Homeland Security, and the Royal Canadian Mounted Police.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Ohio Businessowner Pleads Guilty to Tax Offense Related to Illegal Gambling BusinessesRead the Press Release
An Ohio woman pleaded guilty today to conspiring to defraud the IRS related to her operation of an illegal gambling business.
According to court documents and statements made in court, from 2014 through 2018, Stephanie Condric managed, and later co-owned, Gametastic, an illegal gambling business located in Canton, Ohio. Condric and her co-conspirators did not report to the IRS the cash wages paid to Gametastic’s employees, which caused the business to underpay its employment taxes. In addition, she filed false personal tax returns that concealed a portion of the income she received from Gametastic.
Sentencing for Condric is scheduled for a later date. Condric faces a maximum penalty of five years in prison for conspiring to defraud the United States. She also faces a period of supervised release, restitution and monetary penalties. 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 Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the Stark County Prosecutor’s Office, Department of Treasury Office of Inspector General, Homeland Security Investigations, Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio are prosecuting the case.
Ohio Business Owner Pleads Guilty to Tax Offense Related to Illegal Gambling BusinessesRead the Press Release
An Ohio woman pleaded guilty today to conspiring to defraud the IRS related to her operation of an illegal gambling business.
According to court documents and statements made in court, from 2014 through 2018, Stephanie Condric managed, and later co-owned, Gametastic, an illegal gambling business located in Canton, Ohio. Condric and her co-conspirators did not report to the IRS the cash wages paid to Gametastic’s employees, which caused the business to underpay its employment taxes. In addition, she filed false personal tax returns that concealed a portion of the income she received from Gametastic.
Sentencing for Condric is scheduled for a later date. Condric faces a maximum penalty of five years in prison for conspiring to defraud the United States. She also faces a period of supervised release, restitution and monetary penalties. 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 Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the Stark County Prosecutor’s Office, Department of Treasury Office of Inspector General, Homeland Security Investigations, Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio are prosecuting the case.
New Orleans Woman Sentenced for Theft of More Than $88,000 in Government FundsRead the Press Release
NEW ORLEANS, LA -- ALINE JAMES, a/k/a “Aline Foster” (“JAMES”), age 51, of New Orleans, La., was sentenced for Theft of Government Funds, a violation of Title 18, United States Code, Section 641, announced U.S. Attorney Duane A. Evans.
According to the indictment, JAMES’s mother J.J. was a recipient of Disability Insurance Benefit (“DIB”) Program funds. J.J. passed away in 2012. Unaware of J.J.’s death, the Social Security Administration continued to deposit approximately $87,098 in DIB funds into J.J.’s bank account. After her mother’s death, JAMES spent these funds and forged J.J.’s signature on checks to herself. In addition, JAMES spent $1,200 in Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds that were sent to her mother.
U.S. District Judge Jane Triche Milazzo sentenced JAMES to four (4) years’ probation and payment of a $100.00 mandatory special assessment fee. Judge Milazzo also ordered that JAMES pay $88,298.00 in restitution to the Social Security Administration and the Internal Revenue Service.
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 http://www.justice.gov/cornoavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 cn repot 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.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.
New Orleans Man Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that Danieel mutin, age 19, of New Orleans, pled guilty on March 27, 2024, to Counts 1 and 2 of an indictment charging him with possession with intent to distribute fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) (Count 1); and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i) (Count 2).
As to Count 1, MUTIN faces up to twenty years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release. As to Count 2, MUTIN faces a minimum of five years up to a maximum of life imprisonment, which must run consecutive to any other sentence, up to a $250,000 fine, and up to 5 years of supervised release. As to each charged count, MUTIN also faces payment of a mandatory special assessment fee of $100.00. MUTIN is set for sentencing on June 26, 2024.
According to court documents, on May 18, 2023, New Orleans Police Officers observed a black Audi sport utility vehicle matching the description of a vehicle used in a shooting. Officers pursued the SUV to the intersection of Bullard Road and Dwyer Road, New Orleans. After seeing three black males, including MUTIN, abandon the SUV and flee on foot, officers followed and, ultimately, apprehended MUTIN. After his arrest, officers discovered that MUTIN possessed a backpack containing 134 fentanyl pills designated with the pharmaceutical marking used for Oxycodone. At the time of his arrest, MUTIN had a Glock Model 30, .45 caliber semi-automatic pistol in his pants pocket.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.
New Jersey Tax Preparer Charged in COVID-19 Employment Tax Credit SchemeRead the Press Release
A federal grand jury in Newark, New Jersey, returned an indictment today charging a New Jersey tax preparer with fraudulently seeking more than $150 million from the IRS by filing more than 1,600 false tax returns for himself and his clients that claimed COVID-19-related employment tax credits.
Leon Haynes, of Teaneck, New Jersey, was charged with 55 counts of aiding and assisting in the preparation of false tax returns, five counts of mail fraud, one count of aggravated identity theft and two counts of tax evasion. Haynes was previously charged by complaint in relation to the same scheme.
In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that an eligible small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit” or ERC.
Congress also authorized a credit that a business could take against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during their leave.
As charged in the indictment, from November 2020 to May 2023, Haynes repeatedly exploited these programs that were intended to help small businesses impacted by the COVID-19 pandemic. Acting as a tax preparer, Haynes allegedly filed more than 1,600 false employment tax returns with the IRS claiming COVID-related tax credits on behalf of himself and his clients.
Haynes allegedly falsely told his clients that the government was giving out COVID-relief money for businesses and that they were eligible for it simply because they had a business. Haynes allegedly submitted forms to the IRS on behalf of his client’s businesses, often without consulting his clients, that grossly overstated the number of employees and the amount of wages paid to fraudulently claim these COVID-related tax credits. Haynes allegedly submitted similarly false forms for four of his own companies.
According to the indictment, based on these and other misrepresentations, Haynes fraudulently sought more than $150 million in tax refunds on behalf of his companies and numerous other businesses in his clients’ names.
The IRS allegedly disbursed at least $40 million in tax refunds to Haynes’ clients based on the false tax forms that Haynes filed. Haynes allegedly collected a percentage of the tax refunds the client received from the IRS as a fee. At Haynes’ request, many clients allegedly paid him those fees in cash. Haynes allegedly did not report on his or his businesses’ tax returns some of the income he received from clients as his share of the fraudulent obtained tax refunds. The IRS also allegedly directly mailed Haynes multiple tax refund checks totaling $1,428,592 based on false claims he submitted relating to his businesses.
If convicted, Haynes faces a maximum penalty of 20 years in prison for each mail fraud charge, a maximum penalty of five years in prison for each tax evasion charge, three years in prison for aiding and assisting in the preparation of false return charge and two years in prison for the aggravated identity theft charge. A federal district court judge will determine the 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 Phillip R. Sellinger for the District of New Jersey made the announcement.
IRS Criminal Investigation, the Social Security Administration’s Office of the Inspector General and the U.S. Postal Service are investigating the case.
Trial Attorney Sam Bean of the Justice Department’s Tax Division and Assistant U.S. Attorney Fatime Cano for the District of New Jersey 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.
Mexican National Indicted or Heroin Trafficking, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, man has been indicted by a federal grand jury after police officers found almost six kilograms of suspected heroin in a trash bag he discarded following a traffic accident.
Luis Ponce-Lopez, 26, a citizen of Mexico, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, April 2. The indictment replaces a federal criminal complaint that was filed against Ponce-Lopez on March 26, 2024.
According to an affidavit filed in support of the original criminal complaint, Ponce-Lopez was driving a black 2013 Ford F350 pickup truck when he was involved in a traffic accident on March 24, 2024. Witnesses told police officers they saw Ponce-Lopez get out of his truck after the collision, carry a black trash bag, dump it in a nearby field, and return to his truck. Officers found the trash bag, which contained several packages wrapped in black paper, a silver thermos, and two clear tubs. Four of the containers were tested and found to contain a total of nearly three kilograms of heroin. The total amount of suspected heroin in all of the containers weighed more than 5.7 kilograms.
Officers searched the pickup truck following Ponce-Lopez’s arrest and found a Dan Wesson 10mm semi-automatic handgun.
The federal indictment charges Ponce-Lopez with one count of possessing heroin with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brandon E. Gibson. It was investigated by the Jackson County Drug Task Force.
Project Safe Neighborhoods
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.
Metro Atlanta Man Sentenced for Laundering Fraudulently Obtained COVID-19 Unemployment FundsRead the Press Release
ATLANTA - Austin Martin Siampwizi was sentenced on April 1, 2024, for laundering money procured from fraudulent unemployment claims filed during the height of the COVID-19 pandemic.
“Siampwizi laundered proceeds from fraudulent unemployment claims filed using the stolen identities of more than 50 victims,” said U.S. Attorney Ryan K. Buchanan. “His sentence of imprisonment is an example of our office’s commitment to work closely with our federal and state law enforcement partners to hold individuals accountable for defrauding the CARES Act program.”
“Austin Martin Siampwizi engaged in a scheme to purchase and subsequently cash hundreds of money orders that were funded with fraudulently obtained unemployment insurance (UI) benefits. The UI benefits were from fraudulent online claims submitted to the Washington Employment Security Department using stolen identities. Today's sentencing affirms the U.S. Department of Labor, Office of Inspector General’s commitment to working with our federal and state law enforcement partners to investigate identity theft involving the UI program,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
“The defendant chose to enrich himself by committing fraud, further depleting limited funds that were designated to help businesses struggling to survive during the pandemic,” said Robert C. Donovan, Acting Special Agent in Charge, U.S. Secret Service Atlanta Field Office. “This case signifies our commitment to protect citizens and businesses from fraud and identity theft. We will continue to work closely with our local, state, and federal law enforcement partners to prosecute those who abuse these programs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed as a result of the pandemic and included a provision to provide temporary benefits to individuals who had exhausted their entitlement to regular benefits or were otherwise not eligible. That temporary federal program was administered by state employment agencies.
Siampwizi laundered money obtained from fraudulent unemployment claims submitted to the Employment Security Department of Washington State. These claims were filed using stolen personally identifiable information of over 50 individuals. Siampwizi also submitted fraudulent Economic Injury Disaster Loan and Paycheck Protection Program loan applications for his two businesses, Global Car Rental, LLC, and Global Group Development & Construction, LLC.
Siampwizi, 47, of Atlanta, Georgia, was sentenced to three years, one month in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $279,210.52. On December 14, 2023, Siampwizi pleaded guilty to money laundering conspiracy.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, and the U.S. Secret Service.
Assistant U.S. Attorney Sarah E. Klapman 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.
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.
Massachusetts Man Pleads Guilty to Hate Crime Against Asian American ManRead the Press Release
A Massachusetts man pleaded guilty today to one federal hate crime count.
According to court documents, John Sullivan pleaded guilty to willfully causing bodily injury to victim G.N. through the use of a dangerous weapon (a vehicle) because of G.N.’s actual and perceived race and national origin.
“This defendant’s hate-filled attack not only seriously injured the victim, but also traumatized three children in his family, solely because they were Asian American,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No person in this country should have to fear for their own or their family’s safety because of who they are or where they are from. The Justice Department is determined to stem the rising tide of hate crimes and will vigorously prosecute those who commit them.”
“The actions of John Sullivan are appalling and a sad reflection of intolerance and hate that is far too prevalent in our society,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Sullivan violently assaulted an individual in front of children because of his race and national origin. This behavior will never be tolerated and we will continue to aggressively prosecute hate crimes.”
“John Sullivan’s hateful and violent conduct, motivated by racial intolerance, was intended to physically harm the victim in this case and instill fear within the Asian community in Quincy,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “The FBI and our partners simply won’t tolerate crimes spurred by hate. While we all have the right to believe whatever we want, when those views lead to violence, that’s a different and dangerous story. We urge anyone who is a victim or witness to a hate crime, to report it to us at 1-800-CALL-FBI or tips.fbi.gov.”
According to the plea agreement, Sullivan encountered G.N., who is Vietnamese, and his family, who are also Asian American, outside a post office. Sullivan had never met the victim or the victim’s family before. In front of the family’s three children under the age of 12, Sullivan yelled that the family should “go back to China,” threatened to kill them and drove his car into G.N., causing G.N. to land on the hood of the moving car and remain there while the car moved approximately 200 feet. Eventually Sullivan stopped the car, causing G.N. to fall into a construction ditch and suffer bodily injury and pain.
A sentencing hearing is scheduled for June 26. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Boston Field Office investigated the case.
Assistant U.S. Attorney Torey Cummings for the District of Massachusetts and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division prosecuted the case.
Maryland Man Sentenced to Life for Repeatedly Raping a Girl Under His CareRead the Press Release
WASHINGTON – Charles Clark, 67, of Waldorf, Maryland, was sentenced today to life in prison for sexually abusing a young girl entrusted to his care.
The sentence, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Clark pleaded guilty on October 11, 2022, to a federal count of coercion and enticement of a minor. In addition to the life prison sentence, U.S. District Court Judge Carl J. Nichols ordered Clark to serve a lifetime of supervised release and to register as a sex offender.
In a related case, on March 30, 2023, Clark pled guilty Charles County, Maryland, to one count of sexual abuse a minor/continuing conduct, and one count of sexual abuse of a minor. On December 7, 2023, the defendant was sentenced in Charles County, Maryland, to a term of 45 years in prison.
According to court documents, in June of 2017, Clark targeted a child under the age of 17 beginning in June 2017, subjecting the girl to repeated rape and sexual abuse for five years. Despite being a “father-figure” to this girl, and despite having helped raise the victim from early childhood, Clark sexually abused the girl between 170 and 200 times. The sexual abuse occurred both at the victim’s residence as well as Clark’s residence in Maryland.
While the abuse was ongoing, the Clark and the girl would communicate via Instagram direct messaging and the internet. Starting in 2020, the defendant ordered the girl to send sexually explicit images of herself to him, which she did on at least two occasions. Eventually, the girl disclosed the ongoing abuse to her mother, who immediately reported to law enforcement. Law enforcement, with the girl’s permission, then took over her Instagram account and began messaging with Clark. Clark openly acknowledged that he and the girl had been together for five years and that she “gave [him] the most precious thing a woman can give a man.” When asked what that was, Clark responded that the girl gave him her “virginity.” When asked if he was happy he was her “first” at the age of 13, Clark said, “Hell yeah….” Clark was arrested on April 2, 2021. He has been in custody since.
This case was investigated by the Metropolitan Police Department’s Youth Division with assistance from the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
It was prosecuted by Assistant U.S. Attorneys Janani Iyengar, Jocelyn Bond and Former Assistant U.S. Attorney Angela Buckner.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Maryland Man Pleads Guilty to A Bank Fraud Conspiracy Using Checks Stolen from the U.S. MailRead the Press Release
Greenbelt, Maryland – Kavon Dupree Jackson, age 26, of Capitol Heights, Maryland, pleaded guilty to a bank fraud conspiracy.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Postal Inspector in Charge Ajay Lall of the U.S. Postal Inspection Service - Washington Division (“USPIS”); and Chief Malik Aziz of the Prince George’s County Police Department (“PGPD”).
According to his guilty plea, Jackson and a co-conspirator illegally possessed a U.S. Postal Service (USPS) “arrow key,” which they used to open USPS postal boxes and steal mail. They then took the mail matter back to their residence and culled out any checks from the stolen mail. Jackson and the co-conspirator then changed the names of the payees on the checks to their names or to the names other conspirators recruited to assist with the scheme. Jackson and his co-conspirators would then cash the checks and immediately dissipate the funds for their own gain.
Jackson’s co-conspirator used various social media accounts to advertise for persons with bank accounts at various financial institutions and offered to pay them to use their accounts to wash the stolen, counterfeited checks. In return, these “money mules” would receive a small cut of the proceeds and Jackson and his co-conspirators would retain the rest. Jackson also sometimes deposited stolen checks into his own account. For example, on November 9, 2021, Jackson deposited check number 1354, drawn from Victim 1’s account, into Jackson’s own bank account at another bank. Jackson altered the payee name on the check to that of his own. Additionally, Jackson increased the amount of the check from $90 to $8,800.
On March 16, 2022, law enforcement executed a search warrant at Jackson’s residence. Law enforcement recovered a USPS arrow key, more than 350 stolen checks, an assault rifle, and numerous rounds of ammunition. Law enforcement conducted another search warrant at Jackson’s residence on November 4, 2022, and recovered more stolen checks, mail matter, and a pistol. Jackson agrees that both firearms were purchased with proceeds from the scheme and are subject to forfeiture.
The scheme resulted in more than $250,000 in losses, representing the amounts of stolen checks that were deposited into the financial institutions associated with Jackson or his co-conspirators. More than 50 victims had checks stolen from them which were later deposited into co-conspirators’ accounts. As a result, some of the victims experienced substantial financial hardship.
Jackson faces a maximum of 30 years in federal prison for the bank fraud conspiracy. U.S. District Judge Lydia K. Griggsby has scheduled sentencing for June 18, 2024 at 2:00 p.m.
U.S. Attorney Erek L. Barron commended the U.S. Postal Inspection Service and the Prince George’s County Police Department for their work in the investigation. Mr. Barron also thanked Assistant United States Attorney Jason D. Medinger, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
Mangilao Man Sentenced to 70 Months Federal Prison for Drug TraffickingRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Jacob Vance Manibusan, age 34, from Mangilao, Guam was sentenced to 70 months imprisonment. He was charged with Conspiracy to Distribute Five Grams or More of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 846 and two counts of Distribution of Five Grams or More of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered four years of supervised release and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
From November 2020 to January 31, 2021, Manibusan conspired with others to distribute methamphetamine in Guam. Law enforcement made an undercover purchase of methamphetamine on two occasions. As the organizer of the conspiracy, Manibusan had his then girlfriend and co-defendant, Annalyn Tenorio, assist him with the transactions. The drugs weighed 33.21 grams with a purity of 77%.
This is the defendant’s second federal conviction.
“Repeat offenders are subject to substantial penalties in federal court,” stated United States Attorney Anderson. “Hopefully this sentence will act as a deterrent to future criminal conduct. I applaud the work of DEA in bringing this defendant to justice.”
“With the rising crime rates on Guam, DEA understands the impact of the Methamphetamine epidemic. This drug has destroyed families and most importantly children’s lives ,” said Resident Agent in Charge Kenneth L. Bowman, Guam Regional Office. “We will continue our mission to pursue anyone involved in drug trafficking.”
This investigation was conducted by the Drug Enforcement Administration and prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney in the District of Guam.
Man Pleads Guilty to Concealing Stolen USPS Arrow KeyRead the Press Release
A Fort Worth man pleaded guilty Wednesday to concealing a stolen U.S. Postal Service “Arrow Key,” announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Willis Bender, 18, was charged via criminal complaint in October 2023 and pleaded guilty Wednesday to receipt or concealment of stolen property of the United States.
In plea papers, Mr. Bender admitted he received and concealed a stolen “Arrow Key,” a master key used by the U.S. Postal Service to gather mail deposited in blue collection boxes.
The key – prized by mail thieves – had been stolen from a letter carrier in Everman, Texas on Sept. 20, 2023. The carrier reported that she was robbed at gunpoint by a black man who demanded she hand over her “mailbox key.”
In interviews with law enforcement, Mr. Bender gave various accounts of his involvement in the robbery. At first, he claimed he knew nothing about the incident; then he claimed that a man named showed up at his front door, threatened his family, and forced Mr. Bender to accompany him to the robbery. In a subsequent interview, Mr. Bender claimed a man threatened him with a gun and forced him to sit in the back seat of his car during the robbery. In yet another interview, he said a man committed the robbery while he and another individual waited outside in the vehicle.
In his final interview with law enforcement, Mr. Bender claimed that when police arrived in the area, he looked outside and saw the stolen arrow key sitting outside his door. Not wanting to get in trouble for robbery, he took the key and hid it behind the air duct grill in his bedroom alongside his gun, he claimed.
Mr. Bender now faces up to 10 years in federal prison.
The U.S. Postal Inspection Service conducted the investigation with the assistance of the Everman Police Department. Assistant U.S. Attorney Levi Thomas is prosecuting the case.
MS-13 Gang Member Pleads Guilty to 2017 Quadruple Murder in Central IslipRead the Press Release
Today, in federal court in Central Islip, Edwin Rodriguez, also known as “Manicomio” (Rodriguez), a member of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” pleaded guilty to racketeering charges in connection with his participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre, and Jefferson Villalobos. After committing the murders, Rodriguez was a fugitive from justice before he was arrested in El Salvador and extradited to the United States in 2022. The guilty plea proceeding was held before United States Circuit Judge Joseph F. Bianco, sitting by designation. When sentenced, Rodriguez faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
Mr. Peace expressed his appreciation to all the members of the FBI’s Long Island Gang Task Force and the FBI’s Legal Attaché in San Salvador for their outstanding collaboration in investigating, locating and apprehending this fugitive. Mr. Peace also thanked the International Criminal Police Organization (INTERPOL) for their assistance in this case.
According to court filings and statements made during today’s guilty plea proceeding, Rodriguez was a member of the Normandie Locos Salvatruchas (Normandie) clique of the MS-13. In order to maintain and increase his membership and status in the gang, in early 2017, he conspired with other MS-13 members and associates to orchestrate and execute the murders of perceived rival gang members who had disrespected the MS-13 in their social media postings. On the evening of April 11, 2017, five young men, including the four murder victims, were lured to a wooded park in Central Islip by MS-13 associates, under the guise of smoking marijuana. There, Rodriguez and nearly a dozen other MS-13 members and associates, armed with machetes, knives, an axe, and wooden clubs, surrounded the victims under the cover of darkness, and attacked them. One of the intended victims was able to escape. However, Llivicura, Lopez, Tigre and Villalobos were captured and then brutally hacked, stabbed and bludgeoned to death. The victims’ bodies were discovered the following evening. More than a dozen MS-13 members and associates have been charged in connection with the April 11, 2017 murders.
Rodriguez, who was three months’ shy of his eighteenth birthday at the time of these murders, was originally charged in a sealed Juvenile Information filed on March 16, 2018. He remained a fugitive from justice until August 28, 2019, when he was arrested in El Salvador, pursuant to an INTERPOL Red Notice. The United States formally requested his extradition on September 3, 2019. Rodriguez was detained pending his extradition to the United States, which was formally authorized by the Supreme Court of Justice of El Salvador on July 7, 2022. He was extradited to the United States, and made his first appearance in-district on August 10, 2022. In connection with his guilty plea today, Rodriguez also agreed to be transferred to adult status for purposes of prosecution.
Today’s guilty plea is the latest achievement in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell are in charge of the prosecution. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of Rodriguez.
The Defendant:
EDWIN RODRIGUEZ (also known as “Manicomio”)
Age: 24
El Salvador; and formerly of Central Islip, New YorkE.D.N.Y. Docket No. 18-CR-135 (JFB)
Local man arrested for distributing fentanyl resulting in two fatalitiesRead the Press Release
HOUSTON – A 24-year-old Crosby resident has been taken into custody for trafficking fentanyl on multiple occasions that resulted in death and serious bodily injury, announced U.S. Attorney Alamdar S. Hamdani.
Joshua Ray Stebelton is expected to make his initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo at 2 p.m.
The indictment, returned March 27 and unsealed upon Stebelton’s arrest, alleges he was a member of an ongoing four-year conspiracy to distribute more than 440 grams of fentanyl. According to the indictment, the conspiracy allegedly resulted in the deaths of two and serious bodily injury to a third victim.
In November 2020, Stebelton allegedly distributed less than 40 grams of fentanyl that resulted in the death of an individual. Less than two months later in January 2021, he is alleged to have distributed fentanyl again which resulted in the death of another victim.
In addition to the conspiracy, Stebelton is charged with seven counts of distributing fentanyl from November 2020 through June 2023.
If convicted, Stebelton faces up to life imprisonment and a possible $10 million maximum fine.
The FBI conducted the investigation with the assistance of the Houston Police Department and Harris County Sherriff’s Office. Assistant U.S. Attorneys Anibal J. Alaniz, Casey N. MacDonald and Jimmy Leo are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Lebanon County Man Charged with Distributing Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles Witherson, III, age 38, of Lebanon, Pennsylvania, was charged by a federal grand jury with distributing child pornography.
According to U.S. Attorney Gerard M. Karam, the indictment alleges that on February 5, 2024, in Lebanon County, Pennsylvania, Witherson distributed child pornography. The indictment also alleges that on March 29, 2024, Witherson possessed images of child pornography, including images involving a minor who had not attained 12 years of age.
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.
The FBI investigated the case, and it is being prosecuted by Assistant U.S. Attorney Christian Haugsby.
The maximum penalty under federal law for these offenses is up to 40 years’ imprisonment, a lifetime term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Leader of Nationwide Methamphetamine Ring Pleads Guilty to Drug Trafficking, Firearm and Money Laundering ChargesRead the Press Release
BOSTON – The leader of a nationwide drug trafficking ring pleaded guilty in federal court in Boston yesterday. Throughout the investigation 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. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled.
Reshat Alkayisi, 62, a Turkish national residing in Covington, R.I., pleaded guilty to three counts of a second superseding indictment, charging him with conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine; possession of a firearm in furtherance of a drug trafficking offense; money laundering conspiracy; and two counts of money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 11, 2024.
Alkayisi was arrested in July 2021 and indicted, along with eight others, on drug trafficking and gun charges. Alkayisi was subsequently charged in a superseding indictment that added two defendants, as well as money laundering charges against Alkayisi and others.
In approximately October 2020, investigators received information about drug trafficking activities of a large-scale methamphetamine supplier in the Boston area. In late 2020, Alkayisi was identified as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to customers throughout the New England area. Between October 2020 and April 2021, 12 controlled purchases of methamphetamine were made from the drug trafficking organization—two of which were directly from Alkayisi and one that was negotiated with Alkayisi and allegedly delivered by Brian Keleman.
On June 1, 2021, four packages were seized containing a total of approximately 100 pounds of 100% pure methamphetamine from Keleman that he allegedly picked up on behalf of Alkayisi from a UPS store in Rhode Island. On June 25, 2021, another package was seized, destined for Alkayisi that contained approximately 30 pounds of 100% pure methamphetamine. In total, approximately 160 pounds of methamphetamine was seized throughout the investigation from controlled purchases, motor vehicle stops and package seizures.
During a search of Alkayisi’s residence in Rhode Island, an AK-47 assault rifle, a Glock handgun with no serial number, over 4,200 rounds ammunition, and over $23,000 cash was also seized. Additionally, numerous electronics, including a computer that contained a ledger documenting Alkayisi’s methamphetamine sales for January through June of 2021 was seized. Based on the ledger, as well as the seizures, Alkayisi was responsible for over 660 pounds of methamphetamine over the course of six months.
Alkayisi is the seventh defendant to plead guilty. All remaining defendants are scheduled to plead guilty.
The charges of conspiracy to distribute and to possess with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine provides for a minimum sentence of 10 years and up to life in prison, five years of supervised release and a fine of up to $10 million. The charge of possessing a firearm in furtherance of drug trafficking provides for a mandatory sentence of five years in prison from and after any sentence imposed for the underlying drug trafficking offense, up to three years of supervised release and a fine of up to $250,000. The charges of money laundering conspiracy and money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of up to $500,000 or twice the amount of laundered funds, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Massachusetts Department of Correction; 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.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Lake Placid man sentenced to 20 years for production of child pornographyRead the Press Release
MIAMI – On April 2, a Lake Placid man was sentenced to 240 months in federal prison, followed by a lifetime of supervised release after previously pleading guilty to production of visual depictions involving sexual exploitation of minors.
Frederick Anderson Bowen, 77, of Lake Placid, Florida, recorded himself performing oral sex on a child. Highlands County Sheriff’s Office (HCSO) deputies located the video saved on Bowen’s cellphone.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Sheriff Paul Blackman of HCSO announced the sentenced imposed by U.S. District Judge Roy K. Altman.
FBI Miami, Fort Pierce Resident Agency and HCSO investigated the case. Assistant U.S. Attorney Christopher Hudock prosecuted it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
To report an incident involving the possession, distribution, receipt, or production of child pornography, you can file a report on the National Center for Missing & Exploited Children (NCMEC)’s website at www.cybertipline.com, call 1-800-843-5678, or contact the FBI directly at 1-800-CALL-FBI (1-800-225-5324).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14028.
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La Crosse Gun Store Burglar Sentenced to 6 ½ Years in Prison for Illegally Possessing GunsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Mackey Drake, 23, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 6 ½ years in prison for possessing firearms as a felon. Drake pleaded guilty to this charge on January 17, 2024. The prison term is to be followed by 3 years of supervised release.
On April 25, 2023, at approximately 3:00 a.m., Drake and two others broke into a gun store in Rockland, Wisconsin, and stole 41 firearms and cash. Law enforcement quickly identified Drake and arrested him later in the day when he arrived at a meeting with his state Department of Corrections agent. Drake was on extended supervision at the time, after serving prison sentences for felony robbery convictions in 2017 and 2020. Drake admitted to participating in the gun store burglary, and that he sold some of the firearms to Briante Banks, a felon who could not legally possess them. Banks was charged and pleaded guilty in federal court to possessing a firearm as a felon. His sentencing hearing is scheduled for April 26, 2024.
At sentencing, Judge Conley noted that some of the guns stolen were still on the street, likely in hands of prohibited persons, and may be used to commit crimes. Judge Conley found that a substantial sentence was necessary to protect the community from Drake, who has shown a propensity for violence in an unbroken chain of criminal conduct. Judge Conley also ordered Drake to pay restitution.
“Community safety—where every child can play outside without fear of gun violence and where neighbors feel safe—is paramount for the United States Department of Justice,” said U.S. Attorney Timothy O’Shea. “I am grateful to the ATF, La Crosse Police Department, and La Crosse County Sheriff’s Office for moving quickly to solve this crime which put dangerous weapons in the hands of criminals.”
“Firearms trafficking is a tactic that prohibited persons use to acquire firearms and perpetrate violent crime within our communities,” said ATF Special Agent in Charge Travis Riddle, of the St. Paul Field Division. “We are sincerely grateful for our partnership with La Crosse Police Department and La Crosse County Sheriff’s Office and for their diligence that directly led to the swift arrest of the perpetrators and led to the recovery of a majority of the stolen firearms, preventing them from reaching the hands of violent criminals. I am also grateful for the U.S. Attorney’s prosecutorial work on this case, obtaining justice for the federal firearms licensee as well as ensuring these defendants are held accountable for their actions.”
Nehemiah Sample and Robert Benson were also charged in connection with the Rockland gun store burglary. Sample pleaded guilty to theft of firearms and was sentenced to 24 months in prison. Robert Benson’s case is still pending, and he is presumed innocent of these charges.
The charges against Drake, Sample, Benson, and Banks were the result of an investigation conducted by the La Crosse Police Department, La Crosse County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan prosecuted these cases.
These cases have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Kentwood Residents Plead Guilty to Federal Drug ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that MICHAEL WHITE, age 44, and JOHN WHITE, age 44, both of Kentwood, La., pled guilty on March 27, 2024 to a three-count indictment, charging them with one (1) count of Conspiracy to Distribute and Possess with Intent to Distribute forty (40) grams or more of Fentanyl, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B), and two (2) counts of Distribution of Fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
According to the indictment, MICHAEL WHITE and JOHN WHITE conspired with each other, and with others, to distribute fentanyl in Tangipahoa Parish. They face the same maximum sentence for all three counts to which they have pled guilty. Specifically, they face a minimum of five years up to a maximum of forty years imprisonment, up to a $5,000,000 fine, and up to four years of supervised release. All three counts also carry a mandatory $100 special assessment fee.
This effort is part of an Organized Crime Drug Enforcement Task Force (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 http://www.justice.gov/OCDETF.
United States Attorney Evans praised the work of the Drug Enforcement Agency, Fentanyl Overdose Response Team (FORT), Homeland Security (HSI), and the Hammond Police Department. This case is being prosecuted by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Kansas Man Pleads Guilty to Sexual Exploitation of Lynchburg TeenRead the Press Release
LYNCHBURG, Va. – A Kansas man, who told a 14-year-old girl he wanted to “take a kid’s virginity” after meeting her on Twitter, pled guilty this week to federal child exploitation charges.
Andrew Kent, 22, a.k.a. “Leo” and “JeffThePumpkin,” from Manhattan, Kansas, pled guilty this week to one count of sexual exploitation of children. At sentencing, Kent faces a mandatory minimum sentence of 15 years in prison and a statutory maximum sentence of 30 years.
“This case demonstrates the importance of knowing not only what your children are doing online, but also with whom they are communicating,” United States Attorney Christopher R. Kavanaugh said today. “There are dangerous people on the Internet who specifically target children. We will use every tool we have to find those people and bring them to justice, but parents also perform a critical part in educating and monitoring their children’s online activity.”
“Pursuing justice for victims of child exploitation is one of our highest priorities.” Special Agent in Charges Stanley M. Meador of the FBI’s Richmond Division said today. “We will continue to work with our partners to investigate these horrific acts and bring those responsible to justice.”
According to court documents, in January 2023, Kent met a 14-year-old girl from Lynchburg, Virginia, on Twitter. Initially, Kent pretended to be a 20-year-old woman named “Tris.” He used this “Tris” persona to introduce his victim to a young man named “Leo.” In reality, both the “Tris” and “Leo” profiles were controlled by Kent.
Kent told his victim that he was from Roanoke, Virginia, and sent generic pictures of Roanoke in order to further convince her of their geographic proximity to each other.
When they began chatting, the victim informed Kent that she was only 14 years old. Kent told the her that he was 21 years old and that he was interested in meeting her someday in order to “take a kid’s virginity.”
As the conversations progressed, Kent told the 14-year-old that she needed to call him “Daddy,” “Sir,” or “Master,” and then warned her that he might punish her if she failed to do so. Kent also directed violent language at the victim, telling her he wanted to cut her and make her bleed.
After several weeks of chatting, Kent instructed the victim to send him nude photographs and videos of herself, to which she obliged.
On June 16, 2023, Kent was arrested by law enforcement and interviewed by agents with the Federal Bureau of Investigation. At that time, he admitted to using Twitter, Snapchat, and Discord to contact minor girls for the purpose of getting them to send him naked pictures. He often used the “Tris” persona because he found it was easier to get minor girls to talk to him if he pretended to be a young woman.
Kent estimated he solicited and received images of child sexual abuse material from approximately 200 minor girls.
The Federal Bureau of Investigation investigated the case, and the Lynchburg Police Department provided vital assistance.
Assistant U.S. Attorney Jason M. Scheff is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Justice Department Secures $4.14 Million Settlement for Student-Athletes to Remedy Title IX Violations at University of Maryland, Baltimore CountyRead the Press Release
The Justice Department announced today a settlement agreement with the University of Maryland, Baltimore County (UMBC) to resolve the department’s findings that UMBC allowed a former head coach of the swimming and diving team to sexually harass male student-athletes and discriminate against female student-athletes for years. The department conducted its investigation under Title IX of the Education Amendments of 1972 (Title IX).
“A school’s responsibility is to protect its students, not abusers who seek to exploit their positions of power,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The young student-athletes at UMBC experienced a double betrayal: their coach’s prolonged abuse compounded by their university’s utter failure to acknowledge, respond to or remedy this egregious conduct. UMBC has now taken full responsibility for its failures and has expressed its commitment to addressing them and rebuilding the trust of its community. The Justice Department recognizes the brave and resilient student-athletes who came forward and continue to come forward to share their stories with us. This settlement should send a resounding message to our nation’s colleges and universities: sexual assaults and harassment of students will not be tolerated.”
The department found that in 2015, students reported that the head coach may have used a camera to film them while they showered in a UMBC locker room. Rather than investigate this report or take action to protect students, UMBC administrators warned the coach that campus police planned to search his locker, thwarting the criminal investigation. In 2019, a student reported unwanted sexual touching and harassment by the coach of male swimmers and again, UMBC failed to investigate or otherwise respond. The department also found that during this time, UMBC did not respond to female students’ reports of sex discrimination, including dating violence, while on the team. As a result of these glaring failures by the university, student-athletes were subjected to ongoing sexual abuse, harassment and other sex discrimination by their coach for years.
UMBC has agreed to pay up to $4.14 million in financial relief to student-athletes who were subjected to sex discrimination by the former head coach. Under this settlement agreement, UMBC will also:
- Significantly improve UMBC’s process for responding to complaints of sex discrimination;
- Provide additional resources and staffing for its Title IX compliance program, including a permanent Title IX Coordinator;
- Provide a full-time support person for those who have experienced sexual assault;
- Deliver training to student-athletes and athletics department employees on healthy relationships, intimate partner violence, power dynamics within the coach-athlete relationship and retaliation;
- Create and enforce a policy outlining expectations for coaching staff behavior and
- Administer surveys to student-athletes about their experiences with sex discrimination and take all necessary and appropriate corrective action.
The department will monitor UMBC’s implementation of the agreement, which will remain in place through the 2028-2029 academic year. View a summary of the agreement here.
Attorneys from the Justice Department’s Civil Rights Division’s Educational Opportunities Section and an Assistant U.S. Attorney for the District of Maryland conducted the investigation, with UMBC’s full cooperation.
Individuals with information related to the department’s findings are encouraged to contact the Justice Department at [email protected].
The month of April is observed as Sexual Assault Awareness Month. The enforcement of Title IX, which prohibits sex discrimination, including sexual harassment and assault, in education programs and activities operated by recipients of federal financial assistance, is a top priority of the Civil Rights Division. This settlement is part of the division’s work to combat sexual harassment and follows the division’s resolution of investigations involving allegations of sexual assault of students at San José State University and at Case Western Reserve University. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report/.
Justice Department Secures $1.37 Million Settlement for Pollution Cleanup Costs at Former A.A. Oil Site in IndianapolisRead the Press Release
INDIANAPOLIS- Zachary A. Myers, United States Attorney for the Southern District of Indiana, and Todd Kim, Assistant Attorney General for the Environment and Natural Resources Division (ENRD) at the U.S. Department of Justice, announced today that the Justice Department has entered a consent decree granting the United States money for environmental clean-up costs, along with declaratory relief for costs associated with possible future remediation, relating to the A.A. Oil Site, located at 2340 S Tibbs Avenue, on the Southwest side of Indianapolis.
From the 1950s to the late 1980s, A.A. Oil Co., Inc., a division of Cam-Or, Inc., operated the Site as a waste oil collection, storage, and transfer facility. The waste oil was collected from garages, gas stations, oil change facilities, automobile dealers, and trucking companies, and was stored at the Site and then shipped to the Cam-Or facility in Westville, Indiana.
In 2018, the U.S. Environmental Protection Agency (EPA) conducted a site cleanup to remove the hazardous substances and contaminated surface soil and analyze any imminent or substantial endangerment to the public health or the environment.
On February 13, 2024, the U.S. Attorney’s Office and ENRD sued the defendant companies pursuant to Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), a federal environmental remediation program that authorizes the United States to recover costs incurred in response to the release and threatened release of hazardous substances.
The complaint alleged that the site was contaminated by oil and other hazardous materials over past decades and, as a result, is contaminated with trichloroethylene, polychlorinated biphenyls, and other volatile organic compounds (benzene, toluene, and xylenes, among others) in soil, groundwater, and storage tanks.
As part of the resolution, the defendants, Arconic Corporation, Navistar Inc., and Ford Motor Company, agreed to pay the federal government a total of $1.37 million dollars without admission of liability. The complaint alleged that the defendant companies (in the case of Arconic and Navistar, through their predecessor corporations) transported hazardous materials to the Site, thus rendering them liable for these clean-up costs.
“All residents of the Southern District of Indiana deserve a safe, healthy, and pollution-free community,” said U.S. Attorney Myers. “The Department of Justice is committed to aggressively pursuing environmental enforcement and to holding polluters accountable.”
U.S. Attorney Myers thanked Assistant U.S. Attorney J. Taylor Kirklin, the Office’s Environmental Justice Coordinator, Samantha M. Ricci, Trial Attorney with ENRD’s Environmental Enforcement Section, for their work on this case.
Members of the public who have concerns about environmental matters, including matters involving environmental justice issues, in the Southern District of Indiana can report them to the U.S. Attorney’s office via email to [email protected].
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Jury Finds District Man Guilty of Strangulation and Firearms OffensesRead the Press Release
WASHINGTON - A Superior Court jury issued the District of Columbia’s first strangulation trial conviction finding Jeffrey Strange, 29, of Washington, D.C., guilty of the offense and other charges related to a domestic dispute. The incident took place inside an apartment building in Southeast Washington on Labor Day weekend of 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
On March 29, 2024, a jury found Strange guilty of unlawful possession of a firearm, possession of a prohibited weapon (a “ghost gun”), and destruction of property. Superior Court Judge Jason Park will schedule a sentencing hearing at a later date. Strange faces a mandatory minimum of three years for unlawfully possessing the firearm with a maximum sentence of 15, and up to five years in prison for strangulation. The sentence will be determined by the court after considering all factors.
According to the government’s evidence, at approximately 11 p.m. on Sep. 3, 2023, Strange began incessantly calling the victim, his former girlfriend, to determine her whereabouts. On Sep. 4, 2023, at approximately 1:30 a.m., Strange met the victim outside of their shared residence and began arguing with her until both entered the elevator of their apartment building, where an altercation ensued. The victim was able to get out of the elevator and into the lobby of the building. Strange followed her, continued to strike her, breaking her glasses, and strangling her by putting his hand on her throat and squeezing. The attack left visible injuries to the victim’s lip and face.
The defendant fled the scene after a bystander security guard intervened and the victim called 911. Less than an hour later, he returned to the victim’s residence, assaulted her again, and attempted to discard a firearm in her bedroom closet. Police officers from the Metropolitan Police Department returned to the scene and recovered the firearm. Strange was placed under arrest and has been held in custody since.
The security guard provided surveillance video, that captured a portion of the assault including Strange strangling the victim. The government’s evidence also included DNA evidence linking Strange to the recovered firearm.
This trial marks the first jury trial for felony strangulation since the D.C. Council passed the “Prioritizing Public Safety Emergency Amendment Act of 2023,” designating strangulation as a felony offense.*
This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Assistant U.S. Attorneys Monisha Rao and Richard Kelley, of the Domestic Violence Unit.
*Strangulation is widely recognized as one of the most lethal forms of domestic violence. A major strangulation study in San Diego, which is frequently cited, found: “Many victims suffer internal injuries, including permanent brain damage. Signs and symptoms do exist and can be documented even without visible injury… Most abusers do not strangle to kill. They strangle to show they can kill. Victims often suffer major long-term emotional and physical impacts. Surviving victims are much more likely to die later if their abuser has strangled them.” The study also noted that “…..the odds of becoming a victim of attempted homicide increased by 700%, and the odds of becoming a homicide victim increased by 800%, among women who had been strangled by their partner.”
* Strangulation is widely recognized as one of the most lethal forms of domestic violence. A major strangulation study in San Diego, which is frequently cited, found: “Many victims suffer internal injuries, including permanent brain damage. Signs and symptoms do exist and can be documented even without visible injury… Most abusers do not strangle to kill. They strangle to show they can kill. Victims often suffer major long-term emotional and physical impacts. Surviving victims are much more likely to die later if their abuser has strangled them.” The study also noted that “…..the odds of becoming a victim of attempted homicide increased by 700%, and the odds of becoming a homicide victim increased by 800%, among women who had been strangled by their partner.”
Jackson Man Sentenced to over 12 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Mississippi – A Jackson man was sentenced today to 151 months in federal prison for possession with intent to distribute 50 grams or more of methamphetamine.
Teson Kuran Daniel, 39, was sentenced in U.S. District Court in Jackson.
According to court documents, on January 24, 2023, agents executed a search warrant at the residence of Teson Kuran Daniel. Inside the residence, agents found methamphetamine, cocaine, and two scales. Prior to the execution of the search warrant, Daniel sold methamphetamine and cocaine to a confidential informant on two occasions.
Daniel pled guilty on December 14, 2023, to possession with intent to distribute a controlled substance.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation, Jackson Police Department, Hinds County Sheriff’s Office, and the Byram Police Department.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
Investment Adviser Sentenced to Two Years in Prison for Defrauding Investors of over $1.2 MillionRead the Press Release
BOSTON – An investment adviser from Massachusetts was sentenced today in federal court in Boston for defrauding investors out of more than half a million dollars.
Jose Rocha, 38, of Bridgewater, was sentenced by U.S. District Court Judge Leo T. Sorokin to two years in prison and three years of supervised release. The Court also entered an order of forfeiture in the amount of $774,737. In September 2023, Rocha pleaded guilty to one count of securities fraud.
Between 2020 and 2022, Rocha solicited investments from individuals in Massachusetts. Rocha portrayed himself as a successful investor in publicly traded securities – including stocks and stock options – and promised to manage investor funds in exchange for a share of the returns. In total, Rocha obtained over $1.2 million in investment funds from his victims. Thereafter, Rocha used a portion of those funds to pay purported investment returns to other investors and misappropriated funds for himself, including to pay for vacations and gambling at casinos.
The Securities and Exchange Commission filed a civil complaint against Rocha in August 2023 alleging violations of the securities laws. In conjunction with the guilty plea in this case, Rocha entered into a Consent Judgment with the Securities and Exchange Commission.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. The Securities and Exchange Commission provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Indianapolis Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND- Herman Lamont Banks, 49 years old was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Banks was sentenced to 70 months in prison followed by 2 years of supervised release.
According to documents in the case, on September 29, 2019, law enforcement was dispatched to a welfare check outside a bar located in Gary, Indiana. Law enforcement discovered Banks asleep or unconscious behind the wheel of a running car with its headlights on. As Banks eventually woke up and got out of the car, officers saw and recovered a firearm with a loaded drum magazine attached to it from under the driver’s seat. Bank’s criminal history revealed he had two prior federal felony narcotic convictions, and as such was prohibited from possessing the firearm or ammunition in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Gary Police Department. This case was prosecuted by Assistant United States Attorneys Joel L. Mathur and Kevin F. Wolff.
This case was also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Huntington Woman Pleads Guilty to Role in Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Today, Kyla Smith, also known as “Flaca,” 29, of Huntington, pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine. Smith admitted to her role in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia.
According to court documents and statements made in court, on October 29, 2023, a law enforcement officer conducted a traffic stop of a vehicle driven by Smith on Eighth Avenue in Huntington. Smith admitted that the officer saw her conceal a bag of methamphetamine in the front of her pants during the traffic stop. Smith surrendered the methamphetamine to the officer, and admitted that she intended to distribute the controlled substance. Smith further admitted that she participated in the DTO from at least August 2023 through November 2023. Smith distributed methamphetamine and fentanyl to various customers, including some who redistributed the controlled substances that she provided to them.
Smith and other DTO participants used multiple residences to store and distribute quantities of methamphetamine and fentanyl, including a Davis Street residence in Huntington maintained by Smith. On November 15, 2023, officers executed a search warrant at Smith’s Davis Street residence and seized approximately 477 grams of fentanyl.
Smith is scheduled to be sentenced on July 31, 2024, and faces a mandatory minimum of 10 years and up to life in prison, at least five years of supervised release, and a $10 million fine.
Smith is among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia.
Smith is also among 14 defendants who have pleaded guilty in the main case. One other of the 27 indicted individuals pleaded guilty to a related offense in a separate case. The indictment against the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor are prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.
Helena felon admits illegal possession of loaded AR-15 rifle in vehicle on state capitol groundsRead the Press Release
GREAT FALLS — A felon who was on listed as an absconder on a state of Montana webpage admitted today to illegally possessing a firearm after law enforcement found a loaded AR-15 style rifle in his vehicle on state capitol grounds, U.S. Attorney Jesse Laslovich said.
The defendant, Joshua Nzeyimana, 23, of Helena, pleaded guilty to an indictment charging him with prohibited person in possession of a firearm. Nzeyimana faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Aug. 1 and continued Nzeyimana’s detention pending further proceedings.
The government alleged that on Dec. 3, 2023, Nzeyimana, a convicted felon on state supervision, possessed a loaded AR-15 style rifle in his vehicle on the state capitol grounds in Helena. The rifle was found during a probation search of his vehicle. Nzeyimana was listed as an absconder in Montana Conweb. Nzeyimana admitted during an interview to possessing the rifle and had previously shot one round in open field near a park. Nzeyimana knew he could not legally possess the rifle, so he used another person to purchase it. Nzeyimana was convicted in state district court of felony criminal endangerment and felony assault with a weapon and was prohibited from possessing firearms.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol and Montana Probation and Parole conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Grand Jury Returns Two Indictments Involving FirearmsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned two firearms-related indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
Middleton Woman Charged with Straw Purchasing a Firearm for Felon
Shawna Tantillo, 34, Middleton, Wisconsin, is charged with straw purchasing a firearm for a felon, conspiring to violate the law prohibiting felons from possessing firearms, and lying on a firearms purchase form.
The indictment alleges that on November 28, 2023, a person identified as Person 1 asked Tantillo to purchase a firearm. Despite knowing that Person 1 was a felon, Tantillo agreed to purchase the firearm for Person 1. Tantillo purchased a .380 handgun from a Cross Plains, Wisconsin, gun store on December 7, 2023. The indictment further alleges that at the time of the purchase, Tantillo falsely declared on the purchase form that she was the actual transferee/buyer of the firearm. Tantillo picked up the firearm from the gun store on December 8, 2023, and then gave it to Person 1, who in return gave Tantillo the purchase price plus $150.
If convicted, the conspiracy and false statement charges each carry maximum penalties of 5 years in prison. The straw purchase charge carries a maximum penalty of 15 years in prison.
“Stopping straw buyers and preventing illegal firearms trafficking is our first line of defense against gun violence,” U.S. Attorney Timothy M. O’Shea said in announcing the charges. “It is illegal to purchase a firearm posing as the real buyer for someone else. If a friend or relative asks you to lie to a firearms retailer to try to buy a gun for them, don’t do it.” O’Shea said.
The charges against Tantillo were the result of an investigation conducted by the Middleton and Fitchburg Police Departments and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the case.
Beloit Man Charged with Drug and Gun Crimes
Denzen J. Jones, 41, Beloit, Wisconsin, is charged with distributing cocaine and fentanyl, possessing cocaine for distribution, and maintaining a drug trafficking place. He is also charged with possessing a firearm and ammunition as a felon and possessing a loaded firearm in relation to a drug trafficking crime. The indictment alleges that Jones committed all these acts between May 27, 2022 and August 23, 2022.
If convicted Jones faces a maximum sentence of 20 years in federal prison on each of the drug-related charges. If convicted of the felon in possession charge, he faces a maximum penalty of 15 years in prison. The charge of possessing a loaded firearm in furtherance of a drug trafficking offense carries a mandatory minimum penalty five years in prison to be served consecutively to any other prison term, and a maximum penalty of life in prison.
The charges against Jones are the result of an investigation by the Beloit Police Department, Rock County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals. Assistant U.S. Attorney Kathryn Ginsberg is handling the prosecution.
Both cases have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Georgia Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE –Xavier M. Scott, 57 years old, of Douglasville, Georgia, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to possessing with intent to distribute a controlled substance and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Scott was sentenced to 180 months in prison followed by 8 years of supervised release.
According to documents in the case, on August 3, 2021, Scott was pulled over for speeding on Interstate 469. Scott, a drug courier who transported and delivered controlled substances across the United States, was found in possession of cocaine and cocaine base along with 12.4 grams of 98% pure methamphetamine, an amount consistent with distribution, along with multiple cell phones, zip lock baggies and a digital scale. Scott was also in possession of a loaded firearm used for protection in furtherance of his drug trafficking offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Drug Enforcement Administration, and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Justin C. Sheridan.
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.
Four Defendants Found Guilty on Federal Charges After Obstructing Patients and Providers of a Nashville Area Reproductive Health Services FacilityRead the Press Release
NASHVILLE – United States Attorney Henry Leventis for the Middle District of Tennessee and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced that a federal judge returned a guilty verdict yesterday for defendants Eva Edl, Eva Zastrow, James Zastrow, and Paul Place on criminal charges arising out of their blockade of a reproductive health care clinic in Mount Juliet, Tennessee, on March 5, 2021. The judge found each defendant guilty of a violation of the Freedom of Access to Clinic Entrances Act (FACE Act), 18 U.S.C. § 248.
Evidence presented at trial proved that the defendants violated the FACE Act by using physical obstruction over the course of several hours to interfere with the clinic’s employees and a patient, because the clinic was providing, and the patient sought, reproductive health services. The clinic was located on the second floor of a medical building. The defendants and others filled the interior hallway to the clinic. These defendants positioned themselves directly in front of the main clinic door for over two hours, physically blocking access to the clinic, resulting in no patients accessing the clinic. Police requested that the defendants leave or move multiple times, but after more than two hours, these defendants were arrested.
The defendants face up to a maximum of six months in prison, five years of supervised release, and fines of up to $10,000.
The case was investigated by the Memphis Division – Nashville Resident Agency of the Federal Bureau of Investigation.
The case is being prosecuted by the U.S. Attorney’s Office for the Middle District of Tennessee and the Justice Department’s Civil Rights Division.
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Former Social Security Employee Sentenced to 36 Months in Prison for Pandemic Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Takiyah Gordon Austin, age 47, formerly of Wilkes Barre, Pennsylvania, was sentenced to 36 months’ imprisonment to be followed by three years of supervised release by U.S. District Court Judge Malachy E. Mannion, for a scheme to fraudulently obtain unemployment benefits related to COVID-19 emergency relief funds. Judge Mannion also ordered Austin to pay restitution in the amount of $288,590.
The Pandemic Unemployment Assistance (PUA) program was created by the March 27, 2020 CARES Act, as part of the United States government’s efforts to mitigate the impact of the COVID-19 pandemic on the public’s health and economic well-being. The PUA program was designed to provide unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits.
According to U.S. Attorney Gerard M. Karam, Austin pleaded guilty to one count wire fraud and one count of aggravated identify theft. From in or about May 2020 to in or about May 2021, Austin, a claims specialist with the Social Security Administration, filed PUA claims for ineligible recipients in exchange for payment from the individuals. Additionally, Austin filed claims after accessing SSA databases to obtain the personal identifying information from unsuspecting individuals and then diverted the unemployment funds to addresses she controlled in order to use the funds for her own personal expenses. Through the scheme, Austin defrauded the government of over $288,000.
The case was investigated by the Social Security Administration, Office of the Inspector General, the Department of Labor, Office of the Inspector General, and the United States Postal Inspection Service. Special Assistant United States Attorney Megan Curran and Assistant United States Attorney Alisan V. Martin 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Former Pharma Executive and Cousin Plead Guilty to Insider Trading of Kodak StockRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty pleas of JAMES ANDREW STILES and EDWARD GRAY STILES in connection with a scheme to commit insider trading based on misappropriated information about potential government loans to be made to the Eastman Kodak Company to finance the production of COVID-19-related pharmaceutical components. ANDREW STILES and GRAY STILES were arrested in 2023 and pled guilty today to securities fraud based on insider trading before U.S. District Judge Ronnie Abrams.
U.S. Attorney Damian Williams said: “Andrew Stiles betrayed the trust and confidence of his employer by stealing confidential business information and using it alongside his cousin, Gray Stiles, to make unlawful trades in Kodak’s stock based on inside information. Even secret codes and lies to regulators could not stop them from getting caught. No one is above the law, and this Office’s commitment to protecting the integrity of the financial markets remains a priority.”
As alleged in the Indictment, other public court documents, and statements made during court proceedings:
Between June and July 2020, ANDREW STILES conducted an insider trading scheme in which he misappropriated material, non-public information (“MNPI”) and used it to trade in the stock of the Eastman Kodak Company (“Kodak”). He further provided that MNPI to his cousin, GRAY STILES, so that he would likewise trade on the MNPI.
During that time, ANDREW STILES was an executive at a company (“Company-1”) that was working with Kodak to collaborate on the production of chemicals for pharmaceutical manufacturing in connection with the COVID-19 pandemic. Company-1 was also assisting Kodak in its application for a significant government loan, which ultimately resulted in the news, on July 27, 2020, of a government “letter of interest” to provide Kodak with a loan of $765 million (the “LOI”). In the following days, Kodak’s stock rose substantially, at one point increasing to more than 2,500% above the closing price prior to the news of the LOI.
During June and July 2020, ANDREW STILES was kept apprised of Kodak’s efforts to obtain the government loan, and he both traded using that non-public information and passed that information to GRAY STILES. For example, on July 9, 2020, when Kodak had applied for a loan in the amount of $655 million, ANDREW STILES and GRAY STILES exchanged the following coded text messages:
GRAY: Any update on the film we sent off a few weeks ago to get developed
ANDREW: 600+. Maybe 2 weeks out
GRAY: I can live with that hahaha
Between June 2020, after ANDREW STILES learned about the potential loan to Kodak, and July 27, 2020, the date the LOI was first publicized, ANDREW STILES purchased more than 90,000 shares of Kodak stock, including multiple purchases the day before the LOI was scheduled to be announced. GRAY STILES purchased more than 30,000 shares, more than half of which were purchased the day prior to the scheduled announcement of the LOI. In fact, on July 27, 2020, ANDREW STILES texted GRAY STILES, “Tmw,” indicating the expected date of the announcement. Less than one minute later, GRAY STILES responded, “Hot damn.” Following that exchange, and before the news was announced, ANDREW STILES and GRAY STILES each purchased more than 10,000 additional shares.
ANDREW STILES and GRAY STILES each sold the entirety of their shares in the days and weeks after the announcement. ANDREW STILES realized profits of more than $500,000, and GRAY STILES realized profits of more than $700,000.
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ANDREW STILES, 38, of Charleston, South Carolina, and GRAY STILES, 39, of Richmond, Virginia, each pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Alex Rossmiller, Nicolas Roos, and Allison Nichols are in charge of the prosecution.
Former Paralegal for Chicago Law Firm Sentenced to Two Years in Prison for EmbezzlementRead the Press Release
CHICAGO — A former paralegal for a Chicago law firm has been sentenced to two years in federal prison for embezzling more than $600,000 from bankruptcy estate accounts.
BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters for the law firm. Sutton embezzled money from more than 40 bankruptcy estate accounts and several liquidating trust accounts in Chapter 7 and Chapter 11 matters on which she worked. Sutton orchestrated fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts she controlled, including her personal bank account, credit card account, student loan account, and mortgage account. In one instance, Sutton listed a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds. Sutton’s conduct victimized not only the creditors, but also her law firm, a partner at the firm for whom she worked, and the U.S. Trustee Program, among others.
Sutton, 68, of Manteno, Ill., pleaded guilty last year to a wire fraud charge. In addition to the prison term, U.S. District Judge Mary M. Rowland on Tuesday ordered Sutton to pay $611,263 in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Trustee Program. The government was represented by Assistant U.S. Attorney Kartik K. Raman.
Former Lafayette Firearms Store Owner and Wife Sentenced on Federal Firearms ChargesRead the Press Release
LAFAYETTE, La. – United States Attorney Brandon B. Brown announced that Jeremiah Micah Deare, 40, Sarah Elaine Fogle, 33, were each sentenced yesterday afternoon on federal firearms charges. Deare and Fogle were convicted by a federal jury in November 2023 after a nearly week-long trial of conspiring to deal firearms without a license, making false statements in records required to be kept by a licensed firearms dealer, and failing to run required background checks in connection with their unlicensed firearm business located in Lafayette. United States District Judge James D. Cain, Jr. sentenced the couple as follows:
Jeremiah Micah Deare was sentenced to 97 months in prison, followed by 3 years of supervised release.
Sarah Elaine Fogle was sentenced to 60 months in prison, followed by 3 years of supervised release.
At the trial in November 2023, evidence was introduced that Deare was the owner of Dave’s Gunshop, LLC (Dave’s) and the responsible party for Dave’s Federal Firearms License, which was located in Lafayette, Louisiana. Deare and Fogle did not hold a Federal Firearms License in their individual capacities. Testimony at trial from numerous witnesses revealed that Deare and Fogle engaged in the illegal sale and attempted illegal sale of hundreds of firearms out of their residence and at gun shows as an unlicensed business. The couple was found to have engaged in the business of dealing firearms without following applicable laws, including the required background checks on their customers. There were 246 firearms seized from the couple’s home, many with price tags, and the indictment also seeks forfeiture of a total of 619 firearms which were involved in the commission of these offenses.
On or about August 13, 2019, a compliance inspection was conducted at Dave’s by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). At a warning conference on September 19, 2019, in Baton Rouge, Deare and Fogle were warned for numerous violations, including failing to complete a background check form ATF-4473 (one time), failing to accurately keep acquisition and disposition records for dispositions (67 times), failing to accurately keep acquisition and disposition records for acquisitions (62 times), transferring firearms without having a final response from the National Instant Criminal Background Check System (two times), inaccurate completion of ATF-4473 forms (111 times), and for missing firearms. On that same day in 2019, the ATF investigator provided an Acknowledgement of Federal Firearms Regulations to inform Deare of his responsibilities as a Federal Firearms License holder, and about laws relating to engaging in the business of selling firearms at gun shows. The form was signed by Deare acknowledging that he understood he was responsible for familiarizing himself with the laws and regulations.
Deare and Fogle, after being warned, willfully engaged in the business of dealing in firearms without a license by buying and selling firearms without complying with the recordkeeping and background check requirements required by federal law. Both defendants acquired large quantities of firearms and ammunition from estate sales and other means but would not document the firearms in Dave’s Acquisition & Disposition Book as required by federal law. In addition, firearms brought to Dave’s to be sold on consignment were not logged into Dave’s Acquisition & Disposition Book and were not placed for sale at Dave’s, but rather were taken to various gun shows and sold without background checks in an unlicensed business. Their failure to conduct background checks resulted in the sales of firearms to persons prohibited by law from possessing or purchasing firearms. Additionally, the sales of firearms at gun shows outside the State of Louisiana were not done through a dealer licensed in the state where the gun show was conducted as required by law.
“The regulation of firearm production and sales is a necessary function of the ATF,” stated U.S. Attorney Brandon B. Brown. “The ATF took the opportunity to counsel the defendants as to their wrongdoing, but the defendants nevertheless ignored ATF, deciding to proceed with their criminal conduct and the court has now held them accountable. We hope these sentences serve as a deterrent to anyone who considers engaging in such illicit activity going forward.”
“These two defendants are part of fueling the violent crime problem across the country by selling to prohibited persons,” said ATF New Orleans Special Agent in Charge Joshua Jackson. “They have shown a reckless disregard for the federal laws and responsibilities associated with the privilege of possessing a federal firearms license. The sentence imposed sends a message to the community that dishonorable individuals like this will be held accountable as we work to keep our neighborhoods safe as a top priority for ATF.”
The ATF conducted the investigation and Assistant United States Attorneys Lauren L. Gardner and Myers P. Namie prosecuted the case.
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Former Hospital Manager Sentenced to Federal Prison for Defrauding Employer, Money Laundering, and Tax EvasionRead the Press Release
PENSACOLA, FLORIDA – Timothy S. Gilbert, 54, of Milton, Florida, was sentenced to three years in federal prison after having previously pled guilty to twenty-two counts of wire fraud, ten counts of money laundering, and four counts of tax evasion. Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentence.
“Abuse of trust, embezzlement, and tax evasion warrant significant criminal consequences” said U.S. Attorney Coody. “This defendant’s years-long theft from his employer and his efforts to launder and conceal his fraud proceeds are both illegal and offensive to the hardworking Americans who pay their taxes to defend our country and maintain its operations. It is fitting and proper that he pay restitution, unpaid taxes, and investigative costs for his criminal conduct.”
Court documents reveal while employed as a rehab manager for a local hospital and medical group, Gilbert used a corporate credit card to make unauthorized purchases of prepaid credit cards and gift cards. He would then convert funds from the fraudulently obtained cards using his personal PayPal, Stripe, and bank accounts to conceal his scheme, make personal purchases, and withdraw large amounts of cash to gamble at casinos. Gilbert concealed the credit card payments from his employer by circumventing company policies. Between 2019 and 2022, Gilbert stole and laundered over $607,000.
“Devising a scheme to conceal income from the IRS is blatant criminal activity, especially when you abuse your position of trust and embezzle funds from a hospital that serves the community,” said IRS-CI Acting Special Agent in Charge Lani I. Rosado-Espinal. “Taxpayers who pay their fair share need to be reassured that IRS Criminal Investigation will continue to devote the resources needed to uncover these types of schemes which defraud the honest taxpayers.”
In addition to serving three years in custody, Gilbert was ordered to pay over $607,000 in restitution to the victim hospital, over $160,000 in restitution to the Internal Revenue Service for unpaid taxes, over $38,000 to the Internal Revenue Service and the Pensacola Police Department for costs of prosecution, and $3,700 in special monetary assessments.
This case resulted from a joint investigation by the Internal Revenue Service-Criminal Investigation and the Pensacola Police Department. Assistant U.S. Attorneys Alicia Forbes and Jessica Etherton prosecuted this 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.
Former Health Insurance Coverage Supervisor Sentenced to Federal Prison for Embezzling Nearly One Million Dollars from EmployerRead the Press Release
INDIANAPOLIS- Yolanda Brooks, 52, of Indianapolis, has been sentenced to 18 months in federal prison after pleading guilty to wire fraud.
According to court documents, Yolanda Brooks was employed by Company A as a Medicaid Supervisor from December 16, 2005, until July 2, 2020. Company A processed medical insurance claims on behalf of Medicare, Medicaid, and commercial insurance companies.
Brooks’ responsibilities included processing medical care claims to be paid by Medicaid and other medical insurance carriers. In performance of her duties, Brooks had access to checks in the possession of Company A, which were to be processed as refunds or reimbursements to their clients.
In March and July of 2018, Brooks opened two personal bank accounts at Key Bank in her maiden name, Yolanda Mohid. The address listed for both accounts was Brook’s personal residence in Indianapolis. Other than the introductory title of ‘Yolanda Mohid’ on each account, the account names were similar to the names of clients of Company A.
Between March 22, 2018, and July 23, 2021, Brooks took approximately 486 checks mailed to Company A in the total amount of $920,148.51 and deposited them into her two personal bank accounts referenced above. Brooks falsely represented to the bank that she was authorized to negotiate said checks and deposit them into her personal accounts.
Brooks used the stolen money for her own personal purposes, including shopping at Victoria’s Secret, casino gambling, and luxury vacations.
“Nearly five hundred times, this defendant abused her position of trust to steal nearly a million dollars intended to pay people’s healthcare costs,” said U.S. Attorney, Zachary A. Myers. “Our office is committed to working with our partners at the U.S. Postal Inspection Service to hold fraudsters accountable. The serious federal prison sentence imposed here should serve as a warning to any who might consider engaging in this sort of scheme: you will be caught, you will be prosecuted, and you will potentially go to federal prision.”
“Solving complex financial crimes such as this is one of the many things we do as postal inspectors. I commend the investigative efforts of our postal inspectors in this case, as well as our partners at the United States Attorney’s Office, in unraveling this elaborate scheme and holding Ms. Brooks responsible for her crime,” said Rodney M. Hopkins, Inspector in Charge for the Detroit Division of the United States Postal Inspection Service.
The U.S. Postal Inspection Service investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson also ordered that Brooks be supervised by the U.S. Probation Office for three years following her release from federal prison and pay a total of $920,148.51 in restitution.
U.S. Attorney Myers thanked Assistant U.S. Attorney James M. Warden and who prosecuted this case.
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Florissant Man Sentenced to 8 Years in Prison for Possessing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Wednesday sentenced a man who possessed more than 1,700 images containing child sexual abuse material to eight years in prison.
Sheldon S. Dokes, now 31, uploaded files containing child pornography in March and April of 2022 from his mother’s home in Florissant, Missouri, using the screen name “Sin Frost.” Dokes told investigators that he first viewed child sexual abuse material in a group chat on the Kik app.
Dokes possessed over 1,700 unique images and two unique videos containing child pornography on his phone. Dokes had three images containing child pornography on his Instagram account and another three on his Facebook Messenger account as attachments to messages. Dokes received four images containing child sexual abuse material and distributed two images to others via Kik Messenger.
Dokes pleaded guilty in December to one count of possession of child pornography.
Judge Pitlyk ordered the sentence to run consecutive to the four years Dokes is serving after he was convicted in two gun cases in St. Louis County Circuit Court.
The FBI and the St. Louis County Police Department investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Man Sentenced to 71 Months in Prison for Possession of Child Pornography and Voyeurism OffensesRead the Press Release
WASHINGTON – Kyle Blanco, 21, of Orlando, Florida, was sentenced today to 71 months in prison for possessing over 1,000 child pornography files and using his iPhone to surreptitiously record women as they used bathroom stalls at American University, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Blanco pleaded guilty on August 17, 2023, in the U.S. District Court for the District of Columbia, to a two-count Information, charging him with possession of child pornography and voyeurism. He was sentenced by the Honorable Reggie B. Walton. Following his prison term, Blanco will serve 10 years of supervised release. In addition, Judge Walton ordered Blanco to pay $5,000 in restitution to an identified victim in one of the child pornography files.
According to court documents, on March 30, 2022, an American University student caught Blanco surreptitiously recording her from an adjacent stall in a gender-neutral bathroom. The victim reported the offense to the American University Police Department, which obtained and executed a search warrant for Blanco’s dorm room. The police seized Blanco’s iPhone and laptop computer pursuant to that warrant. Before law enforcement could search Blanco’s iPhone, however, he remotely wiped it in an effort to obstruct the government’s investigation. Law enforcement was able to search Blanco’s laptop, which contained evidence of additional voyeurism offenses at American University. It also contained over 1,000 media files constituting child pornography, some of which depict adult men raping prepubescent girls.
One week after his initial appearance in this case, Blanco violated his release conditions by downloading an application frequently used to access child pornography anonymously and by clearing the web history on his phone. Judge Walton revoked Blanco’s release conditions, and Blanco self-surrendered to U.S. Marshals in Orlando, Florida, on June 9, 2023. He has remained in custody ever since.
The case was investigated by the FBI–MPD Child Exploitation and Human Trafficking Task Force with valuable assistance from the American University Police Department. It was prosecuted by Assistant U.S. Attorney Paul V. Courtney and former Assistant U.S. Attorney Amy E. Larson.