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18 March 2024
Podiatrist Convicted of $4M Foot Bath Fraud SchemeRead the Press Release
Memphis, TN – A federal jury convicted a Tennessee podiatrist today for a scheme to defraud Medicare and TennCare by prescribing and dispensing medically unnecessary foot bath medications and obtaining millions of dollars in reimbursements.
According to court documents and evidence presented at trial, Nathan Lucas, D.P.M., 59, of Memphis, owned and operated a podiatry clinic, Advanced Foot & Ankle Care of Memphis LLC, as well as two in-house pharmacies. Lucas regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of water for patients to soak their feet. These drug cocktails included capsules, creams, and powders that were not indicated to be dissolved in water and some of which were not even water soluble. Lucas chose these medications to prescribe and dispense based on their anticipated reimbursement amount, rather than medical necessity. From October 2018 through September 2021, Lucas caused his pharmacies to submit nearly $4 million in claims to Medicare and TennCare for dispensing expensive foot bath medications that were not medically necessary and not eligible for reimbursement, for which Lucas’s pharmacies were reimbursed over $3 million.
The jury convicted Lucas of five counts of health care fraud. He is scheduled to be sentenced on June 20 and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
HHS-OIG and TBI investigated the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Western District of Tennessee.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Podiatrist Convicted of $4M Foot Bath Fraud SchemeRead the Press Release
A federal jury convicted a Tennessee podiatrist today for a scheme to defraud Medicare and TennCare by prescribing and dispensing medically unnecessary foot bath medications and obtaining millions of dollars in reimbursements.
According to court documents and evidence presented at trial, Nathan Lucas, D.P.M., 59, of Memphis, owned and operated a podiatry clinic, Advanced Foot & Ankle Care of Memphis LLC, as well as two in-house pharmacies. Lucas regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of water for patients to soak their feet. These drug cocktails included capsules, creams, and powders that were not indicated to be dissolved in water and some of which were not even water soluble. Lucas chose these medications to prescribe and dispense based on their anticipated reimbursement amount, rather than medical necessity. From October 2018 through September 2021, Lucas caused his pharmacies to submit nearly $4 million in claims to Medicare and TennCare for dispensing expensive foot bath medications that were not medically necessary and not eligible for reimbursement, for which Lucas’s pharmacies were reimbursed over $3 million.
The jury convicted Lucas of five counts of health care fraud. He is scheduled to be sentenced on June 20 and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
HHS-OIG and TBI investigated the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Western District of Tennessee.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Pennsylvania Resident Sentenced to Statutory Maximum of 30 Years in Prison for Shooting Death of Oconee County ManRead the Press Release
ATHENS, Ga. – A Pennsylvania resident convicted of federal charges resulting from the lengthy investigation into the shooting death of an Oconee County, Georgia, man was sentenced to the statutory maximum of 30 years in prison for his crimes in federal court today.
Ahkil Nasir Crumpton aka “Crump,” 26, of Philadelphia, Pennsylvania, was sentenced to the statutory maximum of 240 months in prison for interference with commerce by attempted robbery and 120 months in prison for false statement during the purchase of a firearm for a total of 360 months in prison to be followed by three years of supervised release by U.S. District Judge Tilman “Tripp” Self, III on March 18. Crumpton was found guilty by a federal jury of all counts on Oct. 25, 2023. The defendant is not eligible for parole. Crumpton is facing state charges for murder and other offenses in Georgia.
“Ahkil Crumpton’s violent crime ended Elijah Wood’s young life and has been the cause of immeasurable pain to many people in the Oconee County community and beyond,” said U.S. Attorney Peter D. Leary. “Local, state and federal agencies have worked tirelessly to seek justice on behalf of Elijah. Our hope is the conclusion of the federal case offers some peace for all those who have been affected by this tragedy.”
“Crumpton’s crime was senseless, tragic and irreversible,” said Robert Gibbs, Senior Supervisory Resident Agent of FBI Atlanta’s Athens office. “This sentencing reflects the commitment of the FBI to working with our law enforcement partners to hold violent offenders accountable to greatest extent the law allows. We hope that Elijah Wood’s family can find some sense of healing and justice in this sentence.”
“NIBIN is proven technology used to link the criminal use of firearms with the person who pulled the trigger,” said ATF Assistant Special Agent in Charge Beau Kolodka. “In this case, NIBIN allowed investigators to successfully connect both shootings to the defendant. Working alongside our local, state and federal partners, ATF is committed to using every resource at our disposal to reduce violent crime and hold violent offenders accountable.”
According to court documents and evidence presented at trial, Crumpton was alone when he entered the RaceTrac gas station and convenience store on Macon Highway in Watkinsville, Georgia, on March 19, 2021, where Elijah Wood was working as the store clerk, filling in for a sick coworker. Crumpton’s face was covered, and he was wearing dark clothing and football gloves. There was another customer in the store; Crumpton is seen on surveillance video exiting and then returning at 1:15 a.m. Upon his return, Crumpton approached Wood, who was standing behind the counter at the cash register. Crumpton pointed a Glock 19 pistol with a weapon mounted light at Wood, firing one round at close range towards Wood, striking him in the chest. Wood’s girlfriend testified at trial that she was on a FaceTime call with Wood at the time. Crumpton ran out of the store without taking any money or merchandise. Wood died at the scene. The Oconee County Sheriff’s Office (OCSO) located one 9mm shell casing from the counter between two of the cash registers.
Four months later, on July 17, 2021, Crumpton was seen exiting the South Street Diner at 140 South Street, Philadelphia, Pennsylvania, at 3:18 a.m. to retrieve a Glock 43 pistol from a vehicle and was approached by Anthony Jones. Surveillance video from a nearby business captured the encounter between Jones and Crumpton. Jones brandished a silver handgun and pointed it at Crumpton, then appeared to grab the car keys out of Crumpton’s left hand. Jones forcefully removed the Glock 43 pistol from Crumpton’s right pocket while simultaneously holding him at gunpoint. When Jones turned around following the robbery and began to run away, Crumpton pulled a Glock 19 pistol from his waistband and fired 13 gunshots that ultimately struck and killed Jones. The spent 9mm shell casings ejected from Crumpton’s handgun were collected by law enforcement and later submitted to ATF’s National Integrated Ballistic Information Network (NIBIN) for comparison testing. The analysis confirmed that the firearm used in the RaceTrac murder in Oconee County, Georgia, was the same firearm used in the Philadelphia, Pennsylvania, shooting.
On the morning of March 16, 2022, FBI and ATF agents arrested Crumpton in Philadelphia on a murder warrant issued out of the Superior Court of Oconee County, Georgia. Crumpton jumped out of his bedroom window to escape arrest, but he was taken into custody by FBI SWAT following a chase. Inside Crumpton’s bedroom, agents located the Glock 19 pistol in his backpack that was confirmed in ballistics testing to be the one used in the shooting deaths of Elijah Wood in Oconee County and Anthony Jones in Philadelphia. In addition, agents found items of clothing worn by Crumpton in both shooting deaths and a loaded AR-15 rifle.
Crumpton was a former member of the University of Georgia (UGA) football team, where he played wide receiver during the 2017 and 2018 season and attended UGA as a student from the fall of 2017 to the spring of 2021, although he did not graduate. At the time of Elijah Wood’s murder, Crumpton resided at an apartment in Watkinsville, Georgia, less than two miles from the RaceTrac, with his teammate Juwan Taylor. Taylor testified at trial that Crumpton came to their apartment after the shooting holding the pistol and was visibly upset saying, “I didn’t mean to do it – I just wanted the money, I just shot him at the store, at the store.” Crumpton explained further that when he lifted the gun up, it “just went off.” Taylor said he was frightened for his own safety and did not tell anyone. In July 2021, Crumpton returned to live in his hometown of Philadelphia.
Co-defendant James North Armstrong, 35, of Commerce, Georgia, testified that Crumpton was a client of his at his tattoo studio. Armstrong testified that Crumpton asked him to purchase a gun for him. Armstrong admitted that he illegally purchased the Glock 19 for Crumpton on Feb. 8, 2021, at the Franklin Gun Shop in Athens, Georgia, by falsely claiming to be the buyer on the Firearms Transaction Record-Form 4473 when Crumpton was the actual buyer. It is a federal offense to lie on Form 4473. Armstrong pleaded guilty to one count of false statement during the purchase of a firearm on Oct. 3, 2023, and faces a maximum of ten years in prison and a $250,000 fine. Sentencing for Armstrong is March 20.
Crumpton was originally indicted on four federal charges (for more information, please see https://www.justice.gov/usao-mdga/pr/federal-murder-attempted-robbery-firearms-charges-filed-shooting-death-oconee-county). The U.S. Supreme Court’s ruling in United States v. Taylor, handed down a month and ten days after Crumpton’s federal indictment, found that attempted Hobbs Act robbery was not a crime of violence. Therefore, Counts Two and Three in Crumpton’s original indictment were dismissed prior to trial.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, please visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
The case was investigated by the Oconee County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), FBI, GBI, the Athens-Clarke County Police Department and the Philadelphia Police Department, with assistance from the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Assistant U.S. Attorneys Mike Morrison and Daniel Peach prosecuted the case for the Government.
Owner of Bay Area Real Estate Company Charged with Wire Fraud and Aggravated Identity TheftRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Vikram Srinivasan, charging him with wire fraud and aggravated identity theft in connection with an alleged fraudulent real estate investment scheme, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert Tripp.
The indictment was filed February 29, 2024, and unsealed earlier today. According to the indictment, Srinivasan, 31, of Fremont, operated, controlled, and at least partially owned Paragon Holdings, LLC, a San Francisco Bay Area-based company that he used to facilitate the fraud. Specifically, the indictment describes how in August of 2019, a victim (identified in the indictment only as “R.K.”) provided money to an individual for the purchase of real estate in San Francisco and, after fearing the invested money had been fraudulently obtained, eventually met with Srinivasan. Srinivasan represented to the victim that he (Srinivasan) could salvage the prior real estate deal. According to the indictment, rather than salvage the deal, Srinivasan made things worse. For example, Srinivasan claimed he could retrieve the victim’s money; however, rather than retrieve the money, Srinivasan allegedly transferred at least some of it to an account in his own name and used the transferred money for his own purposes. Further, the indictment describes how Srinivasan represented that the victim’s money was held by certain escrow companies, when, in fact, it was not. Srinivasan allegedly provided false and fraudulent documentation in support of these representations.
In addition, Srinivasan allegedly solicited additional funds from the victim, promising to use the money for the purchase of additional real estate in Pleasant Hill. Srinivasan represented that he would use Paragon to facilitate the transaction. The indictment alleges the victim provided Srinivasan approximately $125,000 based on this and related misrepresentations. For example, the indictment alleges Srinivasan again allegedly provided fraudulent documentation that suggested there was a sale of the property from a seller through a real estate agent to Srinivasan, as Paragon. This sale of the property did not occur. Rather than use the money for the real estate transaction, Srinivasan transferred some of it to an account in his own name and used it for his own purposes. The indictment also alleges that Srinivasan unlawfully used means of identification of at least two other victims during and in relation to his fraud (identified in the indictment only as “B.R.” and “A.S.”).
In sum, the indictment charges Srinivasan with one count of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. If convicted of wire fraud, Srinivasan faces a maximum sentence of 20 years in prison, and a fine of $250,000 (or twice the value of the gain or loss from the scheme), plus restitution, if appropriate. In addition, if Srinivasan is convicted of aggravated identity theft, each count carries a mandatory two years in prison which would be consecutive to any prison term imposed for the wire fraud count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Srinivasan made his initial appearance this morning before Chief Magistrate Judge Donna M. Ryu. His next scheduled appearance is scheduled for March 20, 2024, before Magistrate Judge Ryu for further proceeding including a further bail review.
Assistant U.S. Attorney Robert David Rees is prosecuting the case with the assistance of Katie Turner and Kay Konopaske. The prosecution is the result of an investigation by the FBI.
Oshkosh Man Sentenced to 9 Years’ Imprisonment on Firearm ChargeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 18, 2024, Douglas T. Murphy (age: 35) of Oshkosh, Wisconsin, was sentenced to nine years’ imprisonment following his conviction last December at a jury trial. He was convicted of being a felon in possession of a firearm in violation of Title 18, United States Code, Section 922(g)(1).
According to court records, on the evening of June 4, 2023, and into the early morning hours of June 5th, Murphy repeatedly pointed a Cobra .380 caliber handgun at several children inside a residence located in downtown Oshkosh. Murphy also used the firearm to “pistol whip” his girlfriend, the mother of the children, causing an open wound on her scalp. A 911 call from the children led to an almost 6-hour standoff with law enforcement, who formed a perimeter outside the residence. At around 6 a.m., the City of Oshkosh Police Department SWAT Team entered the residence and arrested Murphy. The loaded firearm was located in close proximity to Murphy at the time of his arrest.
Murphy is a felon several times over, having been convicted in Waukesha, Manitowoc, and Winnebago Counties.
At the sentencing hearing, Senior United States District Court Judge William C. Griesbach noted the serious and dangerous nature of Murphy’s conduct during the armed standoff. Based on his conduct and extensive criminal history, Judge Griesbach found Murphy to pose a danger to the community and saw a strong need for a lengthy prison sentence to deter Murphy from engaging in further criminal conduct. Upon Murphy’s release from federal prison, he will serve three years on supervised elease.
The case was investigated by the City of Oshkosh Police Department with the assistance of the Winnebago County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Mike Schindhelm and Daniel R. Humble.
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Oregon registered sex offender sentenced to 25 years in prison for child sexual abuse crimesRead the Press Release
Seattle – A 49-year-old Portland, Oregon man was sentenced last week to 25 years in prison for attempted enticement of a minor and possession of images of child sexual abuse, announced U.S. Attorney Tessa M. Gorman. Dirk Tichgelaar has been in custody since his arrest on January 25, 2020. At the sentencing hearing, U.S. District Judge Robert S. Lasnik ordered lifetime supervised release to follow the prison term.
“This defendant acted on his predatory impulse to harm a child – he traveled hundreds of miles thinking he would rape a 5-year-old. The child was fictitious, but his dark intentions were not,” said U.S. Attorney Gorman. “This is a long sentence, but a necessary one, to protect the community.”
According to records filed in the case, Homeland Security Investigations used an internet chat room known to be associated with the trade of images of child sexual abuse, to investigate child predators. Beginning in October 2019, Tichgelaar communicated with an undercover officer about his desire to rape young girls. The undercover officer pretended he had a 5-year-old daughter and Tichgelaar made detailed messages about his desire to rape the child.
Tichgelaar made arrangements to drive from Portland for the sexual abuse, bringing an “Elsa” costume with him as a present for the child. He was arrested when he arrived at the meeting location.
A court authorized search of his home resulted in the seizure of electronic devices including a thumb drive with multiple images of child sexual abuse. Tichgelaar is a registered sex offender due to a 2005 Oregon conviction for first degree sexual abuse.
"In safeguarding our communities' youth, including those as young as 5 years old, Homeland Security Investigations (HSI) remains resolute in our mission to combat child exploitation. The recent sentencing of Tichgelaar exemplifies our unwavering commitment to utilizing every available resource to protect innocent children from predators,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This case underscores the importance of our ongoing efforts to ensure a safer environment for our most vulnerable members and highlights the necessity of continued vigilance in combating child exploitation."
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 United States 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.justice.gov/psc.
The case was investigated by Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Matthew Hampton with assistance from Oregon Assistant U.S. Attorney Gary Sussman.
Operator of Florida Labor Staffing Companies Sentenced to Four Years in Prison for Tax and Immigration ChargesRead the Press Release
The operator of several Key West, Florida, labor staffing companies – including PSEB Specialty Service Inc., Perfect Service Excellent Benefits Services Inc., Starline Hospitality Inc., Norbert Janitorial Service Inc., E.S.F. Services Inc. and Expert Services F.S. Inc. – was sentenced today to four years in prison for tax and immigration-related crimes.
According to court documents and statements made in court, at various times between January 2011 and January 2021, Petr Sutka and others helped run a series of labor staffing companies that facilitated the employment in hotels, bars and restaurants in Key West and elsewhere of non-resident aliens who were not authorized to work in the United States. These labor staffing companies did not withhold federal income taxes and Social Security and Medicare taxes from these workers’ wages and did not report the wages to the IRS.
In addition to his prison sentence, U.S. District Court Judge Jose E. Martinez for the Southern District of Florida ordered Sutka to serve three years of supervised release and to pay $3,551,423.84 in restitution to the United States.
Sutka’s co-conspirators, Vasil Khatiashvili and Zdenek Strnad, are scheduled to be sentenced on April 22.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida made the announcement.
Homeland Security Investigations and IRS Criminal Investigation investigated the case.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Justice Department’s Tax Division and Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida prosecuted the case.
Newbury Man Pleads Guilty to Distribution of Child Sexual Abuse MaterialRead the Press Release
CONCORD – A Newbury man pleaded guilty today in federal court in connection with child exploitation offenses, U.S. Attorney Jane E. Young announces.
Marc Jacques, 49, pleaded guilty to one count of distribution of child sexual abuse material (CSAM). U.S. District Court Judge Paul Barbadoro scheduled sentencing for June 26, 2024.According to court documents and statements made in court, Jacques uploaded 49 files of apparent CSAM to the social media platform Kik between November 24 and December 6, 2021.
Jacques’ IP address had been reported to the National Center for Missing and Exploited Children
(NCMEC) in connection with at least 40 CyberTips related to the online sexual exploitation of children between 2018 and 2022. In June 2022, law enforcement executed a federal search warrant on Jacques’ and his residence. Forensic examination of Jacques’ electronic devices revealed the presence of over 200 files of apparent CSAM as well as chats between him and others related to the sexual exploitation of children and sharing of CSAM.The charging statute provides a sentence of not less than 5 and not more than 20 years in prison, at least 5 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the New Hampshire Internet Crimes Against Children Task Force (ICAC), the Nashua Police
Department, and the Hillsborough County Sheriff’s Department. Assistant U.S. Attorney Kasey
Weiland is prosecuting the case.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
###New Orleans Man Sentenced for Multiple Firearms OffensesRead the Press Release
NEW ORLEANS, LA – On March 14, 2024, United States District Court Chief Judge Nannette Jolivette Brown sentenced LAIRD JOHNSON, age 25, of New Orleans, to 57 months imprisonment for theft of a firearm from a Federal Firearms Licensee, possession of firearms and ammunition by a convicted felon, and possession of a stolen firearm, announced U.S. Attorney Duane A. Evans.
According to court records, during a search of JOHNSON’s home on August 10, 2021, three firearms were recovered, including a Zastava Arms 7.62 Rifle, a Glock Model 19, 9-millimeter semi-automatic handgun, and ammunition as well as a Glock Model 19X, 9-millimeter semi-automatic handgun, which was stolen from a Federal Firearms licensee. He further possessed a firearm on July 23, 2021. JOHNSON is prohibited from possessing firearms due to his previous felony convictions in Orleans Parish Criminal District Court for aggravated assault with a firearm, possession of a firearm by a convicted felon, and simple burglary.
Judge Brown also sentenced JOHNSON to serve three years of supervised release following his term of imprisonment, and a $500 mandatory special assessment fee.
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, the New Orleans Police Department, and the Kenner Police Department. Assistant U.S. Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.
New Orleans Man Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that JUAN MATTHEWS, age 22, of New Orleans, pled guilty on March 13, 2024, to Counts 3 through 5 of an indictment charging him with possession with the intent to distribute marijuana and tapentadol, in violation of 21 U.S.C. Sections 841(a)(1) and 841(b)(1)(C) (Count 3); possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. Section 924(C)(1)(a)(i) (Count 4); and possession of a machine gun, in violation of 18 U.S.C. Section 922(o) and 924(a)(2) (Count 5).
As to Count 3, MATTHEWS faces up to twenty years imprisonment , up to a $1,000,000 fine, and at least 3 years of supervised release. As to Count 4, MATTHEWS faces between five years up to 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 Count 5, MATTHEWS faces up to ten years imprisonment, a fine of up to $250,000, and up to 3 years of supervised release. As to each charged count, MATTHEWS also faces payment of a mandatory special assessment fee of $100.00. MATTHEWS is set for sentencing on June 26, 2024.
According to court documents, on May 18, 2023, members of the New Orleans Police Department observed a black Audi sport utility vehicle (SUV) matching the description of a vehicle used in a shooting. Officers pursued the SUV and observed three black males, including MATTHEWS, abandon the SUV and flee, after which officers successfully apprehended MATTHEWS. During the pursuit of MATTHEWS, officers saw him throw down a Glock with a machinegun conversion device, making it, functionally, a machine gun. Upon apprehension, MATTHEWS was in possession of marijuana, tapentadol, and drug paraphernalia.
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 Orleans Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
NEW ORLEANS, LOUISIANA – ERNEST GREEN, age 55, a New Orleans resident, pleaded guilty on March 13, 2024, before U.S. District Judge Mary Ann Vial Lemmon to possession with intent to distribute a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and being a felon in possession of firearms, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans.
According to court documents, in September 2020, the Federal Bureau Investigation - New Orleans Gang Task Force and the New Orleans Police Department investigated GREEN for his involvement in a drug distribution operation. The investigation involved numerous controlled purchases of cocaine from GREEN. Additionally, agents executed a search warrant at GREEN’s residence that yielded 28.7 grams of cocaine and two illegal firearms.
For the cocaine charge, GREEN faces up to twenty (20) years imprisonment, up to a $1,000,000 fine, at least three (3) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee. For the firearms charge, GREEN faces up to ten (10) years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a $100 mandatory special assessment fee.
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 U.S. Federal Bureau of Investigation - New Orleans Gang Task Force, with the assistance of the New Orleans Police Department, the Jefferson Parish Sheriff’s Office, and the Gretna Major Crimes Task Force, led the investigation. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Financial Crimes Unit.
Muskogee Resident Sentenced to 15 Years for Home Invasion Robbery, Fire Station Burglaries and TheftsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that AARON ISAIAH JOHNSON, age 36, of Muskogee, Oklahoma, was sentenced for a home invasion robbery and subsequent fire station burglaries. Johnson was sentenced to 184 months in prison for one count of Conspiracy to Commit Robbery; one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm; one count of Robbery; one count of Use, Carry, and Brandish of a Firearm; and two counts of Burglary in the Second Degree.
The charges arose from an investigation by the Wagoner County Sheriff’s Office, the Muskogee County Sheriff’s Office, and the Okmulgee County Sheriff’s Office.
On November 12, 2021, Johnson was found guilty of the charges by a federal jury at trial. According to court documents, in December 2018, Johnson, masked and armed with a rifle, broke into and entered an occupied residence where he encountered the homeowner. After striking and assaulting the homeowner with the rifle, Johnson stole cash, a firearm, and the victim’s vehicle. On February 27, 2019, Johnson broke into and entered the Red Bird Fire Station and stole two fire trucks. On March 14, 2019, Johnson broke into and entered the Liberty Fire Station and stole a fire truck. At the time Johnson committed these crimes, he was wearing a court-ordered GPS ankle monitor which placed him at all three locations during the time the crimes were committed.
The crimes occurred in Wagoner, Muskogee, and Okmulgee Counties, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Johnson was remanded into the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Multiple defendants prosecuted on federal firearms, drug chargesRead the Press Release
SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include felony charges for illegal firearms possession and drug distribution, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
“Illegally possessed firearms continue to present a challenge for law enforcement agencies, including the increasing threat from guns illegally modified for fully automatic fire,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “With our law enforcement partners, we will target these illegal weapons and remove them to make our streets safer.”
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
Those indicted during the March term of the U.S. District Court Grand Jury include:
- Jacorey Rivers, 32, of Savannah, charged with Possession of a Firearm by a Convicted Felon; Possession of a Machinegun; and Possession with Intent to Distribute 400 or More Grams of Fentanyl;
- Christopher Michael Owens, a/k/a “Lambo,” 41, Robert Michael Waltz, a/k/a “Hurricane,” both of Hinesville, Ga., and Juan Carlos Rosado Morla, 27, of Gainesville, Ga., charged with multiple drug trafficking offenses. Owens and Waltz are charged with Possession with Intent to Distribute Crack Cocaine; Waltz and Morla are charged with Conspiracy to Possess with Intent to Distribute and to Distribute 500 Grams or More of Cocaine, and Attempted Possession with Intent to Distribute 500 Grams or More of Cocaine; Owens is charged with Possession with Intent to Distribute Marijuana, Possession of a Firearm During and in Relation to a Drug Trafficking Crime, and Possession of a Firearm by a Convicted Felon; and Morla is charged with Conspiracy to Possess with Intent to Distribute and to Distribute Marijuana and 500 Grams or More of Methamphetamine, and Possession with Intent to Distribute Marijuana and 500 Grams or More of Methamphetamine;
- Garland D. Williams, 55, of Hephzibah, Ga., charged with Possession with Intent to Distribute 500 Grams or More of Methamphetamine, and Possession of a Firearm During a Drug Trafficking Crime;
- James Timothy Johnson, 30, of Waycross, Ga., charged with Possession of a Machinegun; and,
- Christopher Jeramy Blair, 44, of Pembroke, Ga., charged with Possession of Firearms by a Convicted Felon.
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- Chester Morgan, 53, of Savannah, was sentenced to 46 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Morgan in May 2023 after finding a co-worker’s stolen pistol in his vehicle.
- Wesley Rosenberg, 25, of Ludowici, Ga., was sentenced to 20 months in prison and fined $1,000 after pleading guilty to Engaging in the Firearms Business Without a License. An ATF investigation determined Rosenberg unlawfully imported and sold firearm silencers.
- Isaac C. Brown, 40, of Guyton, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Georgia Ports Authority police conducting enhanced screenings at the Garden City Terminal found a pistol inside Brown’s truck in March 2023.
- Joshua Bowser, 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found Bowser in possession of a semiautomatic pistol with an extended magazine while serving an arrest warrant related to a shooting in Savannah’s City Market.
- Kenneth Oliver Riley, 60, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found a revolver in Riley’s pocket during a shooting investigation.
- Brian Wesley Dean, 45, of Bloomingdale, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Pooler police officers found a pistol in Dean’s possession during a traffic stop.
- Jose Miguel Marrero, 27, and his mother Jacqueline Christmas, 50, both of Statesboro, Ga., each await sentencing after pleading guilty to False Statement During the Purchase of a Firearm. An ATF investigation determined that Marrero and Christmas purchased multiple handguns from a Bulloch County gun store, falsely claiming that Marrero was the buyer of the guns when they were actually purchased by and delivered to Christmas’ brother-in-law in New York.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Midvale Man Found Guilty of Wire Fraud While on Pretrial Release, Sentenced to 41 Months’ in PrisonRead the Press Release
SALT LAKE CITY, Utah – A U.S. District Court Judge sentenced Chad Leon Sayers, 59, of Midvale, Utah to 41 months’ imprisonment today followed by three years of supervised release for crimes committed while on pretrial release for a separate wire fraud case. The sentence comes after a federal jury found Sayers guilty of wire fraud and contempt of court in 2023.
According to evidence presented at trial, Sayers, while awaiting trial on a 2021 indictment for an alleged securities, wire fraud and money laundering scheme, violated his pretrial release conditions set by a U.S. Magistrate Judge. The explicit conditions ordered Sayers to not be employed in any fiduciary capacity and not seek any investments or conduct any fundraisers. However, on May 18, 2022, while on pretrial release, Sayers sent an email to an individual in the Philippines who was known for helping connect business owners with investors. Sayers emailed the individual for help to raise $300,000 to $500,000 for SMART’R. Sayers was the self-proclaimed founder and CEO of SMART’R, a technology company he described as designing and developing the world’s most advanced mobile devices in the medical, communications, and entertainment industries. He solicited funds by advertising fabricated financial projections, a fabricated team of executives, and fabricated accolades for SMART’R. Sayers also claimed SMART’R had partnerships with well-known companies – like Google, Qualcomm, Redstone, Sony, and Toshiba. During this time, Sayers also concealed his 2021 federal criminal indictment for financial fraud and lawsuits by investors.
In April 2023, a federal jury found Sayers guilty of two counts of wire fraud, and one count of contempt for his conduct while on pre-trial release. He is scheduled for a jury trial for his 2021 case on August 13, 2024, before a U.S. District Court Judge at the United States District Courthouse in downtown Salt Lake City.
“The jury found that Mr. Sayers committed wire fraud and contempt of court by engaging in his fraudulent scheme to obtain money,” said United States Attorney Trina A. Higgins of the District of Utah. “My office, working with our law enforcement partners will vigorously prosecute these cases in order to deter others from engaging in similar criminal behavior.”
"Investment fraud causes not only financial harm but also erodes public trust in our financial system. We are grateful for the collaborative efforts of our Division of Securities and our partners, and commend the U.S. Attorney's office for their unwavering commitment to prosecute these crimes and protect unsuspecting investors," said Utah Department of Commerce Executive Director, Margaret Busse.
The Utah Division of Securities investigated the case.
Assistant United States Attorneys Ruth Hackford-Peer, Jacob Strain, and Special Assistant United States Attorney Sachiko Jepson of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
Man Sentenced to 40 months in prison for Stealing Chief Federal Judge’s Identity and Forging Court DocumentsRead the Press Release
Honolulu, Hawaii – Edmond Abordo of Honolulu was sentenced in federal court today to 40 months for forging the signature of a federal judge in order to trick an elderly woman into paying him thousands of dollars for bogus legal services.
The United States Attorney’s Office for the Southern District of California handled this case after the United States Attorney’s Office for the District of Hawaii was recused.
In November of 2023, Abordo was in the second day of his federal jury trial when he decided to plead guilty to forging the signature of the Chief Judge and using the seal of the United States District Court for the District of Hawaii to create a phony court order. Abordo then used the forged court order to convince the victim that he had used his legal expertise to prevent the foreclosure of her Ewa Beach, Hawaii home.
When Abordo first met the victim, he described himself to her as a “non-licensed attorney” who could help save her home. Abordo—who is not a lawyer and has no legal training—claimed he had expertise on several legal subjects, including mortgages and adverse possession. He convinced the victim to file a federal lawsuit challenging foreclosure of her home. Nearly each time Abordo met with the victim, he demanded a cash payment of $1,000 to $3,000 dollars.
According to the indictment, Abordo ultimately convinced the victim that the federal judge assigned to the lawsuit had awarded her possession of the home, but refused to hand over the court order unless she paid him additional money. In reality, the victim’s home had been lost to foreclosure and the federal lawsuit had been dismissed months earlier. The victim, believing Abordo had a real court order, paid him thousands of dollars in exchange for the forged court order.
Abordo assured the victim that the forged court order was a genuine court document, that the federal judge’s signature on the forged order was genuine, and that the forged court order gave legal possession of the Ewa Beach property to the elderly victim. However, as Abordo then well knew, the forged court order was not genuine, was never issued or signed by the judge, and did not confer any property rights to the victim.
During the hearing, Chief District Court Judge Derrick Watson told the sentencing judge that “nothing is as important to our society as the rule of law. Mr. Abordo’s crimes caused great damage to the integrity of the courts.”
“This defendant had the audacity to not just swindle an elderly victim in the midst of foreclosure, but to forge the signature of a federal judge,” said U.S. Attorney Tara McGrath of the Southern District of California, whose office is handling the recusal case. “The Department of Justice is committed to protecting the integrity of our judicial system.”
“The FBI finds it extremely disconcerting that the defendant preyed on an especially vulnerable kupuna going through personal financial distress involving the loss of their home,” said FBI Special Agent in Charge Steven Merrill. “This sentence shows that we will vigorously and thoroughly investigate cases that target our elderly community. We encourage the public to bring these to our attention by reporting it to ic3.gov.”
DEFENDANT Case Number 22cr00101-BLW-KJN
Edmund Abordo 68 Honolulu, HI
SUMMARY OF CHARGES
Wire Fraud – Title 18 U.S.C., Section 1343
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
Aggravated Identity Theft – Title 18 U.S.C., Section 1028A(a)(1)
Maximum Penalty: A mandatory minimum of two years in prison, consecutive to underlying count
AGENCIES
Federal Bureau of Investigation
Maine Man Pleads Guilty to Sending Racist Death Threats to Black Family in His Apartment ComplexRead the Press Release
A Maine man pleaded guilty today to one count of threatening communications in interstate commerce for sending racist death threats to a Black family living in his apartment complex.
According to court documents, in August 2022, Charles Allen Barnes, 46, of Lewiston, used Facebook Messenger to record and transmit a racial-slur-laden voice message in which he threatened, in graphic and violent terms, to kill his neighbor. In the message, Barnes made repeated derogatory references to the neighbor’s race and stated that he was waiting in his car outside the neighbor’s apartment and would kill the next person who emerged from it. Barnes then sent the recording to an acquaintance of his whom he knew to be close personal friends with the neighbor. Alarmed by the message’s contents, the acquaintance forwarded the recording to Barnes’s neighbor, to warn her of possible danger from Barnes.
“Charles Barnes thought that hiding behind a social media account would shield him from the consequences of terrorizing his neighbors with vile, racist death threats, but he was wrong,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially-motivated death threats and acts of violence are unacceptable in our society today. The Justice Department will continue to thoroughly investigate and vigorously prosecute anyone who carries out threats or acts of bias-motivated violence in our country.”
“Hate of any kind will not be tolerated in Maine,” said U.S. Attorney Darcie N. McElwee for the District of Maine. “With our federal, state and local law enforcement partners, the U.S. Attorney’s Office for the District of Maine will diligently pursue justice for victims of racial harassment, threats, and violence. Barnes’ conduct is not representative of how we treat our neighbors in Maine. Protecting civil rights is one of our highest priorities.”
“Charles Barnes admitted today to using his words as a weapon and making violent, racist threats against his neighbor,” said Special Agent in Charge Jodi Cohen of the FBI Boston Division. “Threats to life are most certainly not protected speech, and the FBI will continue to work with our partners to bring to justice anyone who crosses the line and commits this type of crime.”
A sentencing hearing will be scheduled at a later date. Barnes faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. If the judge determines that Barnes intentionally selected the victim of his crime because of the victim’s race, a sentencing enhancement will be applied.
The FBI Boston Field Office, Lewiston Police Department and the Maine Attorney General’s Office investigated the case.
Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Sheila Sawyer for the District of Maine are prosecuting the case.
Lowell Woman Sentenced to Six Months in Prison in Conspiracy to Use Stolen Identities to Fraudulently Purchase VehiclesRead the Press Release
BOSTON – A Lowell woman was sentenced today for her role in a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles.
Arialka Moya, 35, was sentenced by U.S. District Court Judge Patti B. Saris to six months in prison and three years of supervised release, with the first year to be served in home confinement. In November 2023, Moya pleaded guilty to conspiracy to commit wire fraud, wire fraud and false representation of a Social Security number. Moya was charged by criminal complaint in September 2020 along with seven other co-conspirators.
In January 2019, Moya visited a Massachusetts car dealership and applied for a loan to purchase a vehicle worth over $60,000. In support of the car loan application, Moya provided stolen biographical information of a real United States citizen, including a fraudulent Puerto Rico driver’s license and a Social Security card, as proof of identification. Additionally, Moya used or prepared to use at least nine stolen identities to fraudulently open credit card accounts.
Moya is the final defendant to be sentenced in this case. In total, Moya and her co-conspirators fraudulently purchased at least 47 vehicles and over $270,000 in other merchandise using the credit of identity theft victims, resulting in losses of over $2 million. The co-conspirators have been ordered to pay over $781,000 in restitution to victims who submitted claims.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Valuable assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division prosecuted the case.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Local Importer for Cocaine Trafficking Organization Pleads GuiltyRead the Press Release
BOSTON – A Stoughton man has pleaded guilty to managing a large-scale drug trafficking organization (DTO) that shipped dozens of parcels containing kilograms of cocaine from Puerto Rico to various addresses throughout Eastern Massachusetts and Rhode Island.
Patrick Joseph, 41, pleaded guilty on March 14, 2024 to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 20, 2024.
In February 2020, Joseph was identified as the manager of a DTO who facilitated the importation of dozens of kilograms of cocaine from overseas via the U.S. Mail. Joseph served as the Massachusetts-based importer who communicated directly with suppliers in the Dominican Republic and Puerto Rico, coordinating the transportation of 10-20 kilograms of cocaine at a time in parcels mailed to Massachusetts and Rhode Island. The cocaine was concealed in two-kilogram quantities inside air fryers and locked cash boxes within mailed parcels. Joseph also oversaw multiple couriers who would retrieve and deliver the parcels and arranged for multiple stash locations out of which the DTO operated.
Joseph was arrested and charged along with eight others in May 2021. At the time of the arrests, various firearms, 21 kilograms of cocaine and over $100,000 cash were seized.
The charge of conspiracy to distribute and to possess with intent to distribute five kilograms of cocaine provides for a sentence of at least 10 years up to life in prison, five years and up to lifetime supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement today. The Drug Enforcement Administration, New England Field Division and Homeland Security Investigations in Boston provided valuable assistance with the investigation. Assistant U.S. Attorneys Philip C. Cheng and James E. 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 documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Man Sentenced to Eight Years in Prison for Money Laundering and Importing, Processing, and Distributing OpioidsRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced Friday by United States District Judge Andrew P. Gordon to eight years in prison followed by three years of supervised release for importing, processing, and distributing nearly 300 pounds of Tapentadol (a Schedule II opioid) across the United States, and laundering drug sale proceeds using shell companies.
According to court documents, Christopher S. Housley, 51, used fraudulent identifications to rent postal boxes at several UPS stores in Las Vegas. In January 2021, law enforcement seized parcels containing Carisoprodol, Tadalafil, and Sildenafil inbound from India and addressed to addresses associated with Housley. In total, law enforcement seized nearly 300,000 Tapentadol pills weighing more than 300 pounds.
In July 2021, Housley and a co-conspirator obtained a large industrial pill press; and in October 2021, Housley sought to obtain a Hello Kitty die used to press pills with that logo. After importing and processing the drugs, Housley would distribute them throughout the country.
Furthermore, Housley created two shell companies to aid in paying for the drugs and receiving payments for the drug sales. Between September 2020 and October 2021, the shell companies wired a total of about $116,000 to accounts in India, China, and Singapore. Between July 2021 and January 2022, deposits into those accounts were about $350,000.
On May 3, 2022, law enforcement executed a search warrant at a storage unit rented by Housley under a fake name. The storage unit contained Tapentadol, Alprazolam, and other controlled substances.
Tapentadol, Alprazolam, and other controlled substances seized by law enforcement from a storage locker rented by Housley
Housley pleaded guilty to one-count of possession with intent to distribute a controlled substance, Tapentadol and 20-counts of money laundering.
United States Attorney Jason M. Frierson for the District of Nevada and Assistant Special Agent in Charge Kevin Adams for the DEA Las Vegas District Office made the announcement.
The case was investigated by the DEA and the U.S. Customs and Border Protection. An Assistant United States Attorney in the District of Nevada prosecuted the case.
If you are aware of controlled substance violations in your community — which may include the growing, manufacture, distribution or trafficking of controlled substances — please submit your anonymous tip through the DEA Tip Line at https://www.dea.gov/submit-tip.
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Lafourche Parish Man Sentenced for Possession with Intent to Distribute Methamphetamine, Heroin, and Firearm PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that TRE AUTHEMENT age 25 and a resident of Lafourche Parish, was sentenced on March 13, 2024 to 200 months in prison by United States District Judge Ivan L.R. Lemelle, after previously pleading guilty to possession with the intent to distribute 500 grams or more of methamphetamine and quantities of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A) and possessing a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c).
This case was part of Project Safe Neighborhoods (PSN), which is 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 United States Drug Enforcement Administration, the Lafourche Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, the Terrebonne Parish Sheriff’s Office, and the Louisiana State Police. It was prosecuted by Assistant United States Attorney Maurice Landrieu of the Narcotics Unit.
Kokomo Woman Sentenced to 21 Months in Federal Prison for Embezzling over $400,000 from EmployerRead the Press Release
INDIANAPOLIS- Bethany Olmsted, 43, of Kokomo, Indiana, has been sentenced to 21 months in federal prison after pleading guilty to five counts of wire fraud.
According to court documents, on or about November 29, 2017, Olmsted was hired as controller for Company A, a private business, and five other investment companies partially owned by Company A’s owner. As these companies’ controller, Olmsted managed the bookkeeping, tax reporting, accounts payable, accounts receivable, and day-to-day finances for each business. Olmsted’s duties included tracking and categorizing all the companies’ receipts and spending using accounting software. She also had the authority to write company checks to pay legitimate business expenses.
Starting on November 29, 2018, Olmsted began writing checks from the investment companies’ bank accounts to herself and depositing them into her personal bank account. To conceal her thefts, Olmsted falsely categorized these payments to herself as payments to legitimate businesses or vendors such as for “Mowing & Landscaping.” Similarly, she categorized checks written to herself as payments to “Fortune Companies Inc.” for “Repairs & Maintenance.” In addition, she transferred money from Company A’s bank account to the other companies’ bank accounts to hide the thefts. When confronted by company officials about the theft of company funds, Olmsted repeatedly lied about the extent of the thefts and her efforts to avoid detection by altering the companies’ books.
Between November 2018 and September 2021, Olmsted fraudulently wrote approximately 520 checks from the companies to herself, stealing $413,531. Olmsted used the stolen funds to purchase spa treatments, jewelry, clothes, and dinners at high-end steakhouses.
“For almost three years, this defendant repaid the trust of her employers with deceit and theft, helping herself to nearly half a million dollars and cooking the books to hide the evidence,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Fraud and embezzlement can have devastating effects on the victim individuals and companies. The federal prison sentence imposed here demonstrates that those who commit financial crimes will pay a serious price. I commend the U.S. Postal Inspection Service and our federal prosecutor for their efforts to investigate these crimes and hold the defendant accountable.”
“I am proud of our postal inspectors’ abilities to identify and untangle intricate fraud schemes, and grateful to our partners at the United States Attorney’s Office for their work in bringing justice to individuals who take advantage of their positions of trust for financial gain,” 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 James R. Sweeney II. Judge Sweeney also ordered that Olmsted be supervised by the U.S. Probation Office for 2 years following her release from federal prison and pay $413,531.98 in restitution to the victim businesses.
U.S. Attorney Myers thanked Assistant United States Attorney Adam Eakman, who prosecuted this case.
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Kansas car dealer indicted for rolling back odometersRead the Press Release
WICHITA, KAN.– A federal grand jury in Wichita returned an indictment charging a Kansas businessman with 27 counts of criminal misconduct connected to altering vehicle odometers.
According to court documents, Adam Newbrey, 31, of Derby operated three used car dealerships in Wichita including Ideal Motors, Midwest Wholesale, and Prestige Motors.
In 2020 and 2021, Newbrey allegedly purchased used vehicles in Kansas and Oklahoma, altered the odometers, and then used fraudulent documents to obtain titles from the Kansas Department of Revenue reflecting the falsified odometer readings. He is also accused of using the titles with the mispresented mileage to defraud customers who purchased vehicles.
Newbrey is charged with:
• one count of conspiracy to commit odometer fraud, • nine counts of odometer tampering, • seven counts of mail fraud, • nine counts of aggravated identity theft, and
• one count of wire fraud.The defendant made his initial court appearance March 15, 2024, before U.S. Magistrate Judge Brooks Severson of the U.S. District Court for the District of Kansas.
The Kansas Department of Revenue – Office of Special Investigations and the U.S. Department of Transportation, National Highway Traffic Safety Administration - Office of Odometer Fraud Investigation are investigating the case.
Assistant U.S. Attorney Deb Barnett is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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KC Woman Pleads Guilty to Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman pleaded guilty in federal court today to possessing large quantities of methamphetamine to distribute following the seizure of 700 kilograms of methamphetamine that was hidden in a box trailer and disguised as spray foam insulation.
Nora Linda Ochoa-Chavez, 44, a citizen of Mexico, pleaded guilty today before U.S. District Judge Howard F. Sachs to one count of aiding and abetting the possession of methamphetamine with the intent to distribute.
Co-defendant Rafael Valencia-Galaviz, 43, also a citizen of Mexico residing at the same residence, pleaded guilty on May 24, 2023, to the same charge. Valencia-Galaviz also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Special agents from Homeland Security Investigations contacted the co-defendants at their residence on Oct. 20, 2021, following the large seizure of methamphetamine that was identified at a Laredo, Texas, port of entry and subsequently seized in Kansas City, Kan. Valencia-Galaviz was renting a room with his girlfriend in Ochoa-Chavez’s residence.
Federal agents located Valencia-Galaviz in a bedroom, where they found a Smith & Wesson .40-caliber firearm under a mattress, two vacuum-sealed packages that contained nearly a kilogram of marijuana, and a backpack that contained an undetermined amount of cash. HSI agents also found a Remington .22-caliber rifle with no visible serial number and a Springfield Armory 9mm firearm in the upstairs loft area.
Agents also searched Ochoa-Chavez’s Dodge Caravan, which was parked in the rear of her residence. They found a total of 68 gallon-sized zipper style bags that contained a total of 66.8 kilograms of methamphetamine. Agents also found a Taurus .380-caliber firearm, a US Auto Weapons 5.56-caliber rifle with a loaded 60-round drum magazine, two Anderson Manufacturing AM-15 rifles, a Heckler and Koch .22-caliber rifle, and an Intratec 9mm handgun.
Valencia-Galaviz told investigators he picked up 50 kilograms of methamphetamine two or three days prior to his arrest, and there were approximately 18 kilograms in the van that were left over from an 80-kilogram load he had picked up approximately two to three weeks prior to his arrest.
Prior to this search and arrest, on July 12, 2021, investigators established surveillance on a tractor trailer parked at a truck stop in Olathe, Kansas. Ochoa-Chavez met with the driver of the tractor trailer and handed him a brown paper bag that contained $30,000 in cash. When agents seized the tractor trailer and searched it, they found approximately 700 kilograms of methamphetamine that was hidden within and disguised as spray foam insulation for the box trailer.
Under federal statutes, Ochoa-Chavez is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. Valencia-Galaviz is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by Homeland Security Investigations.
Justice Department and Federal Trade Commission to Cohost the Third Annual Spring Enforcers SummitRead the Press Release
The Justice Department and the Federal Trade Commission (FTC) will cohost the third annual Spring Enforcers Summit on Monday, April 8.
Assistant Attorney General Jonathan Kanter of the Antitrust Division and FTC Chair Lina M. Khan, as well as senior staff from both agencies, will gather with international competition enforcers and state attorneys general to discuss enforcement priorities and strategies for effective coordination.
The morning plenary sessions will be livestreamed to the public on the FTC’s website. The agencies will meet in the afternoon for closed-door in-person discussions between international enforcers and state attorneys general on common issues.
The Enforcers Summit agenda will be posted to the Antitrust Division’s website prior to the event. A link to view the summit’s open virtual session will be posted to the FTC’s website the day of the event.
Justice Department Finds University Failed to Address Allegations of Sexual Abuse of Student Athletes in MarylandRead the Press Release
The Justice Department announced today the results of its investigation into allegations that a former head coach of the Swimming and Diving Team at the University of Maryland, Baltimore County (UMBC) sexually harassed male student-athletes and discriminated against female student-athletes. The department notified UMBC that its failure to respond to known allegations of sex discrimination violated Title IX of the Education Amendments of 1972 (Title IX) and that UMBC’s failures allowed the former head coach to exploit his power over student-athletes, prey on student-athletes’ vulnerabilities and engage in egregious and ongoing abuse spanning many years.
“We will not tolerate sexual harassment and abuse of student-athletes on college campuses in our country. Too many school officials and administrators knew something for UMBC to have done nothing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold our nation’s colleges and universities to their promise to educate students free from sexual harassment and discrimination — our young people deserve nothing less. We will continue to stand with the survivors of sexual harassment and ensure that schools take actions necessary to protect students from this kind of degrading and painful discrimination and abuse.”
Among other things, the department’s investigation found that, as early as 2015 and continuing through 2020, UMBC was on notice of and failed to respond adequately to allegations that the former head coach filmed students while showering and sexually touched male student-athletes on the pool deck, in the locker room and in the bathroom of the university’s aquatic center.
The department also found that, from 2016 through 2020, the Athletics Department failed to report several incidents of dating violence by male student-athletes against female teammates. Athletics staff and male swimming and diving teammates also made degrading comments about female student-athletes’ bodies and the head coach asked invasive questions about their sexual relationships.
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 enforcement of Title IX, which prohibits sex discrimination in education programs and activities operated by recipients of federal financial assistance, is a top priority of the Civil Rights Division. 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 Commemorates National Public Defense DayRead the Press Release
To commemorate National Public Defense Day, the Justice Department’s Office for Access to Justice (ATJ) announced the launch of the Public Defense Resource Hub (PD Hub), a one-stop shop with comprehensive resources and materials to support individuals and organizations involved in public defense. The PD Hub will collect existing resources for professionals providing public defense services, public defense commissions, and related organizations from across the federal government and develop additional tools to help defenders access necessary resources, research, and guidance to support the constitutional right to counsel.
“Every day, in courts across America, the promise of the Sixth Amendment is made real through the dedication and commitment of public defenders,” said Attorney General Merrick B. Garland. “The Justice Department is proud to stand with the public defenders and criminal defense attorneys who work to carry out the foundational principle, reaffirmed 61 years ago today in Gideon v. Wainwright, that the law protects all of us – the poor as well as the rich, the powerless as well as the powerful.”
“Last year, I was proud to join the Office for Access to Justice in Florida to announce the Justice Department’s National Public Defense Day Tour,” said Deputy Attorney General Lisa Monaco. “This year, by launching the new Public Defense Resource Hub, we take another important step to support the critical work of public defenders nationwide.”
“The Justice Department is committed to supporting modern public defense systems that address the urgent criminal and civil legal needs in communities across the country,” said Acting Associate Attorney General Benjamin C. Mizer. “On National Public Defense Day, we renew this commitment by establishing a Public Defense Resource Hub that will simplify access to federal government resources to strengthen public defense.”
The Public Defense Resource Hub offers numerous benefits and introduces a novel approach to supporting public defense from the Department:
- Centralized Access: By consolidating all funding information, toolkits, research, advocacy resources, and other relevant materials, the PD Hub provides a one-stop destination for resources to support individuals and organizations involved in public defense.
- Efficiency: Users can explore a wide range of resources without needing to navigate multiple websites or sources, saving time and effort in finding pertinent information.
- Increased Resources: The PD Hub will encourage increased resources to support public defense and will empower public defenders with tools to strengthen advocacy efforts, thereby improving the quality of multidisciplinary public defense
- Transparency: Hosting funding information on the PD Hub promotes transparency in resource allocation for public defense, ensuring that criminal justice stakeholders are aware of available funding opportunities and committed to support equitable distribution.
- Collaboration and Innovation: The PD Hub will foster collaboration and innovation among public defenders, policymakers, researchers, and impacted communities.
“Providing public defenders with the tools, resources, and support they need to fulfill their critical mission makes our justice system fairer, more equal, and more just,” said ATJ Director Rachel Rossi. “The Public Defense Resource Hub is an innovative first-of-its kind resource to assist public defenders, state, local, and Tribal policymakers, and related professionals to provide the highest quality multidisciplinary legal representation to historically underserved and marginalized communities.”
The Public Defense Resource Hub was developed in response to feedback and engagement during the National Public Defense Day Tour and National Law School Tour in commemoration of the 60th anniversary of Gideon v. Wainwright last year, and direct engagements with public defenders, defender commissions, Tribal defenders, and law schools across the country. These included visits with public defense leaders, law students, impacted communities and other justice system stakeholders in Miami, Florida; Tulsa, Oklahoma; the Muscogee (Creek) Nation; Las Vegas; Nashville, Tennessee; Des Moines, Iowa; Concord, New Hampshire; Portland, Maine; Missoula, Montana; Seattle, Washington; and Dallas.
On March 21, the office will conclude its National Law School Tour with a final stop at Atlanta’s John Marshall Law School, where Director Rossi will announce the launch of the Public Defense Resource Hub and speak to law students about the nation’s critical need for public defenders and the future of public defense.
Jury Convicts Riverview Man for COVID Relief FraudRead the Press Release
Tampa, FL –United States Attorney Roger B. Handberg announces that a federal jury has found Alexander Alli (39, Riverview) guilty of conspiracy to commit wire fraud and two counts of wire fraud. Alli faces a maximum penalty of 20 years in federal prison on each count. His sentencing hearing is scheduled for June 10, 2024. Alli was indicted on January 18, 2023.
According to testimony and evidence presented at trial, Alli submitted a fraudulent Economic Injury Disaster Loan (EIDL) application to the Small Business Administration (SBA). Alli falsely represented that he had a business suffering injury due to the effects of the Covid-19 pandemic and the EIDL funds would be used only for business-related purposes. Alli’s business, however, had ceased operations prior to the start of the pandemic and was no longer operational at the time his EIDL application was submitted. Alli’s false and fraudulent representations caused the SBA to approve and fund a total of $82,500 in EIDL funds, which he spent on non-business-related purposes.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
This case was investigated by Homeland Security Investigations (HSI) and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Jennifer Peresie and Merrilyn Hoenemeyer.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Johnson City Man Sentenced to Two Years for Aggravated Identity Theft Related to Defrauding COVID-19 Economic Relief ProgramRead the Press Release
GREENEVILLE, Tenn. – On March 18, 2024, Ketan Ghutadaria, 53, of Johnson City, Tennessee was sentenced to 24 months in prison by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. Following his release from imprisonment, Ghutadaria will be on supervised release for one year, and he will be required to pay restitution in the amount of $100,300.
As part of a plea agreement filed with the court, Ghutadaria agreed to plead guilty to Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A(a)(1), in connection with a scheme to defraud the Economic Injury Disaster Loan (“EIDL”) program, a federal program authorized to provide loans to small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
As set forth in the filed plea agreement, on March 31, 2020, Ghutadaria submitted an electronic application to the Small Business Administration (“SBA”) requesting an EIDL on behalf of a local trucking company. Ghutadaria used the business owner’s personal identification information to apply for the EIDL without the business owner’s knowledge or authority. The SBA approved the EIDL application based on the fraudulent information provided by Ghutadaria. On June 16, 2020, the SBA transferred $100,300 in EIDL funds into a bank account that Ghutadaria had access to. Between June 16, 2020, and September 2020, Ghutadaria spent approximately all the EIDL funds to pay off student loans, to pay off a motor vehicle loan, and on other personal items.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and United States Secret Service (“USSS”) Resident Agent in Charge, Jason Brown, made the announcement.
The case was investigated by Special Agent Thomas Whitehead of the USSS.
Assistant United States Attorneys Mac Heavener and Ryan Blackwell represented the United States.
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 the 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.
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Illegal sale of monkey over Craigslist sends Houston woman to prisonRead the Press Release
HOUSTON – A 21-year-old woman has been sentenced for selling wildlife, including a spider monkey, in violation of the Lacey Act, announced U.S. Attorney Alamdar S. Hamdani.
Savannah Nicole Valdez pleaded guilty Feb. 8, 2023.
U.S. District Judge Andrew S. Hanen has now ordered Valdez to serve 15 months in federal prison to be immediately followed by three years of supervised release. The court considered that Valdez was previously sentenced to two years of supervised release for smuggling a monkey into the United States and high-speed flight from an immigration checkpoint. The court revoked her supervised release in that case, and she received another month to run consecutively with this prison term.
“When Savannah Valdez sold a Mexican spider monkey, she contributed to endangering a species,” said Hamdani. “As the court heard today, those who traffic in infant spider monkeys shoot the mothers first and then pull the infants from their mother’s dead bodies before throwing them into cages for transport. Valdez’s actions helped sustain an illicit market that encouraged the needless death and suffering of endangered animals. Thankfully, now she will have to spend time in a cage of her making - a prison cell.”
In summer 2023, authorities discovered several advertisements posted to Craigslist offering exotic birds for sale including keel-billed toucans and yellow-headed amazon parrots. These are federally protected under the Endangered Species Act.
Law enforcement identified the personal cell phone number of Valdez during the initial investigation. They found the contact number listed for the animals was, in fact, the same.
The subsequent undercover operation involved the sale of two keel-billed toucans and a Mexican spider monkey.
On July 28, 2023, her mother arrived at Memorial City Mall in Houston to deliver the toucans and accepted $3,000 as payment. Her mother would later admit her daughter had arranged the sale.
On Aug. 1, 2023, Valdez then coordinated the sale of a Mexican spider monkey for $8,500. She had her sister deliver it on her behalf.
The animals have been transferred to zoos within Texas.
Valdez as permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility in the near future.
The Fish and Wildlife Service conducted the investigation with the assistance of Homeland Security Investigations and the Department of Agriculture - Office of Inspector General. Assistant U.S. Attorney Steven Schammel prosecuted the case.
Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Aaron Zachary Slash, 23, of Huntington, was sentenced today to three years and five months in prison, to be followed by three years of supervised release, for possession with intent to distribute heroin.
According to court documents and statements made in court, on September 5, 2023, law enforcement officers conducted a traffic stop of a vehicle driven by Slash on the 700 block of Sixth Avenue in Huntington. Officers searched the vehicle and found approximately 92 grams of heroin, a loaded Glock 17 9mm pistol and approximately $1,717 in the vehicle. Slash admitted that he possessed the seized heroin and intended to distribute it. Slash further admitted that the cash was proceeds from selling heroin.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Courtney L. Finney and Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-173.
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Huntington Man Sentenced to More than 12 Years in Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Christopher D. Spaulding, also known as “Casino,” 32, of Huntington, was sentenced today to 12 years and six months in prison, to be followed by three years of supervised release, for distribution of fentanyl. Spaulding admitted to providing controlled substances containing fentanyl to two individuals who overdosed, one of them fatally.
According to court documents and statements made in court, on March 4, 2019, Spaulding was at an Eighth Street bar in Huntington when two individuals, a man and a woman, approached him and asked if he had cocaine for sale. Spaulding accompanied the individuals from the bar to the woman’s vehicle parked outside. Spaulding admitted that while in the vehicle, he distributed a substance containing cocaine and fentanyl to both individuals.
Spaulding further admitted that shortly after the woman nasally inhaled the substance, she began to exhibit signs of an overdose. Spaulding moved her from the driver’s seat of her vehicle to the passenger seat, and drove her vehicle to multiple locations to meet his friends while the woman was overdosing inside the vehicle.
Hours after leaving the bar, Spaulding drove the woman to Cabell Huntington Hospital in her vehicle. She was not responsive or breathing when they reached the hospital, and hospital staff physically removed her from the vehicle. The woman was later pronounced dead by medical staff.
After leaving the woman at the hospital, Spaulding drove her vehicle into Ohio where he dropped off his friends at a hotel. Spauling eventually left the vehicle in Guyandotte, Ohio, placing its keys in the glove compartment.
Spaulding admitted that he later learned that the man he had distributed the controlled substance to that evening had also exhibited signs of an overdose after nasally inhaling the substance. The man received naloxone from Cabell County Emergency Medical Services. He was transported to Cabell Huntington Hospital where he recovered.
Toxicology testing confirmed that the substance distributed by Spaulding to both individuals contained fentanyl and cocaine. Spaulding admitted that the cause of death of the woman was due to alcohol, fentanyl and cocaine intoxication. Spaulding further admitted that she would not have died but for the fentanyl he distributed to her.
Spaulding has a long criminal history that includes 10 prior convictions. At the time of this offense, Spaulding was on parole following his conviction for attempt to commit a felony in Cabell County Circuit Court on June 9, 2017.
“Mr. Spaulding engaged in an inherently dangerous activity at a time when our communities continue to face an opioid epidemic and the devastating loss of life from overdoses,” said United States Attorney Will Thompson. “The defendant not only caused a death by distributing fentanyl, but possibly could have prevented that death had he not failed to obtain professional medical treatment when he became aware the woman was overdosing.”
Thompson made the announcement and commended the investigative work of the Huntington Police Department and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Finney and Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-18.
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Honduran National Sentenced to 14 Months Imprisonment for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that HUGO BRIAN FUENTAS-EGUIGURENS (“FUENTAS-EGUIGURENS”), age 27, was sentenced on March 12, 2024 by United States District Judge Darrel James Papillion to 14 months imprisonment, after previously pleading guilty to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a). Additionally, the court sentenced FUENTAS-EGUIGURENS to 1 year of supervised release and the payment of a mandatory $100 special assessment fee.
According to court documents, FUENTAS-EGUIGURENS reentered the United States after being previously deported on April 26, 2019. On or about April 1, 2023, FUENTES-EGUIGURENS, was found to be unlawfully present in Jefferson Parish, Louisiana based on an Immigration Alien Query. Federal authorities placed an immigration detainer on FUENTES-EGUIGURENS after his arrest by the Jefferson Parish Sheriff’s Office on March 31, 2023. Records revealed that FUENTES-EGUIGURENS has been arrested for numerous crimes, and had convictions for simple escape, and resisting an officer.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal Re-Entry of Removed Alien and Illegal Use of a Social Security NumberRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that ALAN RONEY MATUTE-MENDOZA, a/k/a “Allan M. Matute,” a/k/a “Alan Mendoza,” a/k/a “Jonathan Ramos Mendoza,” age 37, a native of Honduras, pled guilty on March 12, 2024 to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), and illegal use of a Social Security Number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court records, MATUTE-MENDOZA reentered the United States after being previously deported on June 19, 2017. For this offense, MATUTE-MENDOZA faces up to two years imprisonment, a fine of up to $250,000, up to one year of supervised release, and payment of a mandatory $100 special assessment fee. Additionally, on or about June 25, 2021, MATUTE-MENDOZA was found to be illegally using a social security number that was not his. For this offense, MATUTE-MENDOZA faces up to five (5) years imprisonment, a fine of up to $250,000.00, up to three years of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement and the Office of the Inspector General for the Social Security Administration in investigating this matter. Assistant U.S. Attorney Mary Katherine Kaufman of the General Crimes Unit is in charge of the prosecution.
Harrison Township Pilot Sentenced to 2 Years in Prison for Assaulting Girl During Flying LessonRead the Press Release
DETROIT – A Harrison Township resident was sentenced to 24 months in federal prison for abusive sexual contact with a child, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan.
Rex Phelps, 72, of Harrison Township, pleaded guilty on October 26, 2023 to Abusive Sexual Contact of a Child before United States District Judge Stephen J. Murphy, III, who also sentenced Phelps to 24 months in prison, the maximum sentence permitted by law.
While providing flying lessons to a 15-year-old girl, Phelps groomed and inappropriately touched the victim on several occasions. Phelps also exchanged text messages, including one with a picture of a man and a woman lying on a bed kissing. Phelps commented on the picture, “Shortly after the shower … without that top. Maybe more.” Phelps’s abuse of the minor was only uncovered after he mistakenly sent this text message exchange to an unintended recipient, and that recipient contacted police.
“This sentence reaffirms our office’s commitment to protecting the most innocent and vulnerable members of our community – children,” U.S. Attorney Ison said. “This defendant violated the trust that so many had placed in him, including the victim’s parents.”
“Teachers and instructors are supposed to protect our youth while they progress in their learning environments, and it is utterly shameful that this individual took advantage of this young girl,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI and its partners remain committed to holding these criminals accountable for exploiting the innocent.”
This case was investigated by special agents of the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorney Tara Hindelang.
Hardy County Man Sentenced to 16 Years for Federal Drug and Firearms ChargesRead the Press Release
ELKINS, WEST VIRGINIA – William Albert Flinn, Jr., age 45, of Moorefield West Virginia, was sentenced today to 195 months in federal prison for methamphetamine and firearms charges.
Flinn pled guilty in August 2023 to possession with intent to distribute more than 50 grams of methamphetamine and possession of a firearm in furtherance of a drug crime. According to court documents and statements made in court, during a methamphetamine sale in Hardy County, Flinn showed the buyer an assault rifle. Investigators then executed a search warrant at Flinn’s home and found 383 grams of meth, the assault rifle, and cash.
Flinn will report for 5 years of supervised release following his prison sentence.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
Chief U.S. District Judge Thomas S. Kleeh presided.
Four Men Sentenced for $18M Global Investment Fraud SchemeRead the Press Release
Four men were sentenced last week for participating in an eight-year investment fraud and money laundering scheme that defrauded over a dozen victims around the world out of more than $18 million.
John C. Nock, 55, of Fayetteville, Arkansas, founder of The Brittingham Group, was sentenced on March 14 to 20 years and 10 months in prison; Brian Brittsan, 67, of Boise, Idaho, was sentenced on March 14 to 10 years in prison; Kevin Griffith, 68, of Orem, Utah, was sentenced on March 15 to 12 years and six months in prison; and Alexander Ituma, 57, of Lehi, Utah, was sentenced on March 15 to eight years and four months in prison.
“For nearly a decade, the defendants brazenly and repeatedly lied to investors, defrauding them out of more than $18 million and laundering the proceeds of their crime through a complex web of bank accounts around the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendants have now been held to account for their crimes. The sentences imposed last week reflect the Justice Department’s commitment to rooting out investment fraud and protecting Americans’ financial security.”
According to court documents and the evidence presented at trial, between at least 2013 and 2021, Nock, Brittsan, Griffith, and Ituma conspired to engage in an investment fraud scheme through The Brittingham Group, a purported investment firm that claimed to have access to exclusive investment opportunities, including deals involving the monetization of foreign bank guarantees. Together, the four defendants falsely represented the nature of their investment offerings and made guarantees to victims regarding the safety and security of their funds. The defendants also promised victims outsized returns, to be paid in a short period of time, which the defendants could not and did not ever produce. To promote and conceal the conspiracy, Nock and Brittsan directed victims to send their money to bank accounts that Griffith, Ituma, and other co-conspirators controlled, and created fake documents to send to victims to make the investment appear legitimate and to be progressing. Once the money was in the hands of the co-conspirators, the defendants transferred victim money through a complex web of worldwide bank accounts.
“For years, the defendants’ blatant and egregious investment fraud scheme used false promises to bilk investors out of millions of dollars of their hard-earned money,” said Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office. “IRS-CI is proud of their joint efforts with the Justice Department and the FBI to hold Nock, Brittsan, Griffith, and Ituma accountable for their greed. The women and men of IRS-CI will continue to band together with their law enforcement partners to pursue those who commit financial crimes and steal from trusting individuals.”
“The victims in this case were promised lucrative investment opportunities, but what they got was a conspiracy of lies and fraud,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “These defendants stole more than $18 million from over a dozen victims through a years-long fraud scheme, and the sentences they received last week will help hold them accountable for their crimes.”
In August 2023, the defendants were convicted of conspiracy to commit wire fraud, multiple counts of wire fraud, and conspiracy to commit money laundering. Nock was also convicted of money laundering for using victim funds to pay a prior debt unrelated to The Brittingham Group.
IRS-CI and the FBI investigated the case. The U.S. Attorney’s Office for the Western District of Arkansas provided invaluable assistance.
Trial Attorneys Philip Trout, Vasanth Sridharan, and Sara A. Hallmark of the Criminal Division’s Fraud Section prosecuted the case.
Former energy company president convicted in $5.5M illegal kickback conspiracy and commodities insider trading schemeRead the Press Release
HOUSTON - The former president of a Texas energy company has pleaded guilty to an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
Matthew Clark, 56, Needville, entered his plea March 15, admitting he conspired with others to direct his employer’s trades to Classic Energy LLC in exchange for illegal kickbacks. Specifically, Clark accepted more than $5.5 million in illegal kickbacks, which were generated from commission fees his employer paid to Classic Energy. Classic Energy is a brokerage firm Matthew Webb, 54, Tiki Island, owned and operated.
“Matthew Clark made millions trading in natural gas commodities, but unlike most Houston traders, he made his money illegally through the use of kickback schemes involving associates, relatives and his employer’s proprietary insider information,” said U.S. Attorney Alamdar S. Hamdani. “The natural gas futures contract market is an integral part of Houston’s economy, and to preserve the integrity of that system, it is important that commodity traders who buy and sell those contracts not engage in illegal and unfair practices. That’s why my office is committed to holding those accountable, like Clark, who use kickbacks and inside information to enrich themselves at the expense of the public’s trust in the U.S. markets.”
“Matthew Clark steered his company’s commodities trading business to a broker in exchange for over $5.5 million in illegal kickbacks. He also misappropriated confidential information about his company’s planned commodities trades and used that information to enrich himself and his co-conspirators,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “When corporate insiders engage in insider trading and other deceptive trade practices for their own financial gain, they don’t just harm the company—they undermine the integrity of our financial markets. This groundbreaking investigation was the first to result in criminal convictions for commodities insider trading. It will not be the last.”
Clark also misappropriated his employer’s material nonpublic information and engaged in prohibited commodities transactions. Webb, through Classic Energy, brokered Clark’s natural gas futures trades with counterparties who were identified in advance of executing the trades. The predetermined counterparties included John Ed James, 54, Katy, and Peter Miller, 49, Puerto Rico. Clark, Webb, James and Miller then shared the net profits generated from these illegal prearranged trades.
“The FBI and its partners will continue to relentlessly pursue those who engage in illegal kickback schemes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “This plea should make it known to others that participate in illicit activity that threatens the integrity of our financial systems that there are consequences to your actions.”
Clark pleaded guilty to one count of conspiracy to commit honest services wire fraud, one count of prohibited commodities transaction and one count of commodities insider trading. He is scheduled to be sentenced June 24 and faces a maximum penalty of 20 years in prison for the honest services wire fraud conspiracy count and 10 years in prison on each of the prohibited commodities transaction and insider trading counts.
Webb pleaded guilty in June 2021 to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act, while James admitted in February 2021 to conspiracy to commit commodities fraud and wire fraud. Miller entered his plea in February 2022 to conspiracy to commit commodities fraud. Miller is set for sentencing June 20, while Webb and James are scheduled for July 1.
In two other related cases, Marcus Schultz, 44, Houston, and Lee Tippett, 64, of Jacksonville, Florida, were convicted in July 2020 and August 2021, respectively. Schultz pleaded guilty to conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act. Tippett entered his plea to conspiracy to commit commodities fraud and honest services wire fraud and was sentenced to 33 months in prison.
The FBI conducted the investigation.
Assistant U.S. Attorney Grace Murphy is prosecuting the case along with Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division’s Fraud Section.
Former Tennessee County Corrections Officer Sentenced for Obstructing Federal Civil Rights Investigation into Allegations of Sexual Misconduct with an InmateRead the Press Release
A former corrections officer with the Maury County, Tennessee, Jail, James Stewart Justice, was sentenced on Friday to 15 months in prison and one year of supervised release. A federal jury previously convicted Justice of falsifying a record in a federal civil rights investigation for a report he wrote in response to allegations that he had sexually abused an inmate in his custody.
“This defendant abused his authority as a corrections officer to cover up allegations of sexual misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Law enforcement officers who oversee our jails and prisons have a responsibility to protect people in their custody. Officers must treat allegations of sexual misconduct seriously and document them carefully. We will continue holding officers accountable when they abuse their position of power to cover up their unlawful conduct.”
“Corrections officers are entrusted with immense power over the inmates in their care. The vast majority of them carry out their important jobs with honor and integrity,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “This prosecution, and the sentence imposed last week, however, should serve as a reminder that we will not hesitate to hold corrections officers accountable when they violate the law and the public trust.”
“This sentence is the result of relentless efforts by the FBI to bring to justice corrections personnel who abuse their position of trust,” said Special Agent in Charge Douglas S. DePodesta of the FBI Memphis Field Office. “The FBI will continue to work with our partners to ensure the physical safety and civil rights of all individuals and ensure that any public servant who abuses their authority is held accountable.”
According to court documents, the defendant, formerly known as James Stewart Thomas, wrote an official report for the Maury County Jail in response to allegations that he had sexually abused an inmate he had guarded in a hospital room while the inmate recovered from major surgery. In his report, Justice falsely claimed that he had reported to two Maury County Jail supervisors that an inmate had made sexual advances toward him while the inmate was in his custody at the hospital, falsely claimed that those two Maury County Jail supervisors both advised him not to write a report about the inmate’s alleged sexual advances and omitted a claim he later made to criminal investigators that he had a sexual relationship with the inmate after the inmate’s release from custody.
The FBI Memphis Field Office, Nashville Resident Agency investigated the case.
Trial Attorney Kyle Boynton of the Civil Rights Division and Assistant U.S. Attorney Amanda J. Klopf for the Middle District of Tennessee prosecuted the case.
Former San Francisco PUC Chief Sentenced to Four Years in PrisonRead the Press Release
SAN FRANCISCO - Harlan Kelly Jr. was sentenced today to four years in prison and ordered to pay a $10,000 fine after being tried and convicted of participating in a long-running honest services fraud bribery conspiracy and a separate bank fraud scheme and conspiracy, announced First Assistant United States Attorney Patrick D. Robbins, FBI Special Agent in Charge Robert K Tripp, and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The sentence was handed down by the Hon. Richard Seeborg, Chief U.S. District Judge, following a 12-day jury trial.
“By abusing his position and violating his duty of trust, Harlan Kelly betrayed the people of the City of San Francisco in service to his personal greed,” said First Assistant U.S. Attorney Robbins. “Today’s four-year prison sentence sends a clear message that public officials who violate their oath of office and betray their duty as public stewards will be held accountable.”
“The citizens of San Francisco deserve honesty and integrity from their public officials,” said FBI Special Agent in Charge Robert Tripp. “Kelly, however, put his own personal gain above the people he served, for which he will now spend years in prison. The FBI and our partners will continue to root out and hold accountable government officials who violate the public's trust.”
“Harlan Kelly’s long-running bribery and bank fraud schemes were rooted in greed and are blatant abuses of power,” said CI Acting Special Agent in Charge Michael Mosley. “Today’s sentencing serves notice to those afflicted with such greed and disregard for public trust: you are not above the law and CI special agents along with their federal law enforcement partners work daily to protect and maintain public trust while developing cases that hold criminals responsible.”
Kelly, 61, of San Francisco, was convicted of the crimes on July 14, 2023. The evidence at trial showed that during the relevant time, Kelly was the general manager of the San Francisco Public Utilities Commission (SFPUC) and one of the highest-ranking appointed officials in San Francisco City government. The evidence demonstrated that for over six years, while Kelly was leading the SFPUC, he received a stream of bribes from a contractor seeking to be awarded millions of dollars in SFPUC contracts. The jury concluded Kelly accepted the bribes which included payments for a lavish vacation to Hong Kong and China, construction work on this house, and other benefits. Further, the evidence demonstrated that in return for bribes, Kelly used his official position to provide aid to a contractor by providing the contractor with internal, confidential PUC documents related to the contract being sought.
In addition, Kelly was convicted of participating in a separate bank fraud conspiracy. The jury concluded that both Kelly and his co-conspirator Victor Makras, 65, of San Francisco, took steps to defraud Quicken Loans as part of a $1.3 million mortgage loan application. Both Kelly and Makras were convicted of bank fraud and false statements for their respective roles in the scheme.
On May 31, 2022, a federal grand jury handed down a superseding indictment charging Kelly with conspiracy to commit honest services fraud, in violation of 18 U.S.C. § 1349, honest services fraud, in violation of 18 U.S.C. § 1343 and §1346, conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, bank fraud, in violation of 18 U.S.C. § 1344, conspiracy to make false statements to a bank, in violation of 18 U.S.C. § 371, and making false statements to a bank, in violation of 18 U.S.C. § 1014. Kelly was convicted of one count of conspiracy to commit honest services wire fraud, one count of honest services wire fraud, and all four counts related to the bank fraud scheme. The jury found Kelly was not guilty of two honest services wire fraud counts.
In addition to the prison term and the fine, Judge Seeborg also ordered Kelly to serve a three-year period of supervised release to begin after his prison term. Judge Seeborg ordered Kelly to begin serving his sentence on June 19, 2024.
Assistant U.S. Attorneys David Ward and Kristina Green are prosecuting the case with the assistance of Tina Rosenbaum.
The prosecution is the result of an investigation by the Federal Bureau of Investigation and the CI. Kelly’s sentencing is the latest in the U.S. Attorney’s six-year investigation into public corruption in San Francisco. To date, more than a dozen individuals and two corporations have pleaded guilty or admitted their involvement in the sprawling corruption schemes.
Former President of Energy Company Pleads Guilty to $5.5M Illegal Kickback Conspiracy and Commodities Insider Trading SchemeRead the Press Release
The former president of a Texas energy company pleaded guilty last week to an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
According to court documents, Matthew Clark, 56, of Needville, Texas, conspired with others to direct his employer’s trades to Classic Energy LLC, a brokerage firm owned and operated by Matthew Webb, 54, of Tiki Island, Texas, in exchange for illegal kickbacks. Specifically, Clark accepted more than $5.5 million in illegal kickbacks, which were generated from commission fees paid by his employer to Classic Energy.
“Matthew Clark steered his company’s commodities trading business to a broker in exchange for over $5.5 million in illegal kickbacks. He also misappropriated confidential information about his company’s planned commodities trades and used that information to enrich himself and his co-conspirators,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “When corporate insiders engage in insider trading and other deceptive trade practices for their own financial gain, they don’t just harm the company — they undermine the integrity of our financial markets. This groundbreaking investigation was the first to result in criminal convictions for commodities insider trading. It will not be the last.”
“Matthew Clark made millions trading in natural gas commodities, but unlike most Houston traders, he made his money illegally through the use of kickback schemes involving associates, relatives, and his employer’s proprietary insider information,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “The natural gas futures contract market is an integral part of Houston’s economy, and to preserve the integrity of that system, it is important that commodity traders who buy and sell those contracts not engage in illegal and unfair practices. That’s why my office is committed to holding those accountable, like Clark, who use kickbacks and inside information to enrich themselves at the expense of the public’s trust in the U.S. markets.”
Clark also misappropriated his employer’s material nonpublic information and engaged in prohibited commodities transactions. Webb, through Classic Energy, brokered Clark’s natural gas futures trades with counterparties who were identified in advance of executing the trades. The predetermined counterparties included John Ed James, 54, of Katy, Texas, and Peter Miller, 49, of Puerto Rico. Clark, Webb, James, and Miller then shared the net profits generated from these illegal prearranged trades.
“The FBI and its partners will continue to relentlessly pursue those who engage in illegal kickback schemes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “This plea should make it known to others that participate in illicit activity that threatens the integrity of our financial systems that there are consequences to your actions.”
“The FBI Houston Field Office is proud to have spearheaded this first-of-its-kind criminal commodities insider trading case,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “Securities and commodities fraud may be a non-violent crime but it’s certainly not victimless – it damages the public’s confidence in the U.S. markets and stacks the deck against fair traders and investors.”
Clark pleaded guilty to one count of conspiracy to commit honest services wire fraud, one count of prohibited commodities transaction, and one count of commodities insider trading. He is scheduled to be sentenced on June 24 and faces a maximum penalty of 20 years in prison for the honest services wire fraud conspiracy count and 10 years in prison on each of the prohibited commodities transaction and insider trading counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Webb pleaded guilty in June 2021 to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act; James pleaded guilty in February 2021 to conspiracy to commit commodities fraud and wire fraud; and Miller pleaded guilty in February 2022 to conspiracy to commit commodities fraud. Miller is scheduled to be sentenced on June 20. Webb and James are scheduled to be sentenced on July 1.
In two other related cases, Marcus Schultz, 44, of Houston, and Lee Tippett, 64, of Jacksonville, Florida, pleaded guilty in July 2020 and August 2021, respectively. Schultz pleaded guilty to conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act, and Tippett pleaded guilty to conspiracy to commit commodities fraud and honest services wire fraud. Tippett was sentenced on Feb. 20 to two years and nine months in prison followed by three years of supervised release. Schultz is scheduled to be sentenced on July 1.
The FBI Houston Field Office is investigating the case.
Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Grace Murphy for the Southern District of Texas are prosecuting the case.
Former O.C. Tax Preparer Sentenced to 10 Years in Federal Prison for Leading Scheme to Swindle IRS and States Out of Millions of DollarsRead the Press Release
SANTA ANA, California – A former Orange County tax preparer was sentenced today to 120 months in federal prison for leading multi-year tax fraud conspiracies across three countries, which claimed more than $10 million from the IRS and dozens of state tax authorities in fraudulent tax refunds and led these authorities to lose more than $1.2 million.
Stephen Jake McGonigle, 67, of Victorville, was sentenced by United States District Judge James V. Selna, who also ordered him to pay $1,230,175 in restitution. Judge Selna also ordered that the $300,000 McGonigle previously paid to be free on bond in this case be applied to the restitution order.
At the conclusion of an eight-day trial, a jury in November 2023 found McGonigle guilty of one count of conspiracy to defraud the United States, one count of conspiracy to commit wire fraud, and one count of aggravated identity theft.
McGonigle recruited others to help convince the IRS and dozens of state governments to issue millions of dollars in fraudulent tax refunds.
To perpetrate the massive fraud that began in 2013 and lasted until McGonigle’s arrest in 2019, McGonigle sent one co-conspirator to Thailand to obtain fake identification documents that used stolen victim identities, and then he directed other co-conspirators to use those fake identifications to obtain prepaid debit cards, as well as numerous commercial mailboxes across Orange County and elsewhere.
After having the prepaid debit cards sent to these untraceable mailboxes, McGonigle and his co-conspirators filed fraudulent tax returns using the identity theft victims’ Social Security numbers. Those fraudulent tax returns sought millions of dollars in tax refunds to be deposited into these prepaid debit cards or other bank accounts that they controlled.
With more than a decade of tax preparation experience in Southern California, McGonigle used his knowledge to lead the fraud scheme. The IP addresses used to file the fraudulent returns were traced back to various cities in Southern California, including McGonigle’s home in Fallbrook and various office spaces leased by McGonigle in Lake Forest, Costa Mesa, Fountain Valley, and Carlsbad. Some IP addresses were traced back to Costa Rica, where law enforcement surveillance and travel records confirmed that McGonigle and his co-conspirators opened an office and hired employees to help file additional fraudulent returns.
McGonigle’s scheme fraudulently sought more than $10 million from federal and state tax authorities and caused an actual loss of $1,230,175. Prosecutors have secured guilty pleas from two co-defendants, who are also scheduled to be sentenced in the coming months.
IRS Criminal Investigation, Homeland Security Investigations, and the United States Postal Inspection Service investigated this matter. The Missouri Department of Revenue and the U.S. Secret Service provided substantial assistance during the investigation.
Assistant United States Attorneys Sue Bai of the Terrorism and Export Crimes Section and Colin Scott of the General Crimes Section prosecuted this case.
Former Maury County Corrections Officer Sentenced for Obstructing Federal Civil Rights Investigation into Allegations of Sexual Misconduct with an InmateRead the Press Release
NASHVILLE – A former corrections officer with the Maury County, Tennessee, Jail, James Stewart Justice, was sentenced on Friday to 15 months in prison and one year of supervised release. A federal jury previously convicted Justice of falsifying a record in a federal civil rights investigation for a report he wrote in response to allegations that he had sexually abused an inmate in his custody.
“Corrections officers are entrusted with immense power over the inmates in their care. The vast majority of them carry out their important jobs with honor and integrity,” said United States Attorney Henry C. Leventis for the Middle District of Tennessee. “This prosecution, and the sentence imposed last week, however, should serve as a reminder that we will not hesitate to hold corrections officers accountable when they violate the law and the public trust.”
“This defendant abused his authority as a corrections officer to cover up allegations of sexual misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Law enforcement officers who oversee our jails and prisons have a responsibility to protect people in their custody. Officers must treat allegations of sexual misconduct seriously and document them carefully. We will continue holding officers accountable when they abuse their position of power to cover up their unlawful conduct.”
“This sentence is the result of relentless efforts by the FBI to bring to justice corrections personnel who abuse their position of trust,” said Special Agent in Charge Douglas S. DePodesta of the FBI Memphis Field Office. “The FBI will continue to work with our partners to ensure the physical safety and civil rights of all individuals and ensure that any public servant who abuses their authority is held accountable.”
According to court documents, the defendant, formerly known as James Stewart Thomas, wrote an official report for the Maury County Jail in response to allegations that he had sexually abused an inmate he had guarded in a hospital room while the inmate recovered from major surgery. In his report, Justice falsely claimed that he had reported to two Maury County Jail supervisors that an inmate had made sexual advances toward him while the inmate was in his custody at the hospital, falsely claimed that those two Maury County Jail supervisors both advised him not to write a report about the inmate’s alleged sexual advances and omitted a claim he later made to criminal investigators that he had a sexual relationship with the inmate after the inmate’s release from custody.
The FBI Memphis Field Office, Nashville Resident Agency investigated the case.
Assistant U.S. Attorney Amanda J. Klopf for the Middle District of Tennessee and Trial Attorney Kyle Boynton of the Civil Rights Division prosecuted the case.
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Former Federal Correctional Officer Sentenced to Federal Prison for Role in Bribery and Contraband Smuggling SchemeRead the Press Release
PORTLAND, Ore.—A former federal correctional officer in Oregon was sentenced to federal prison today for his role in a conspiracy to smuggle contraband into a federal prison in exchange for money.
Nickolas Carlos Herrera, 34, of McMinnville, Oregon, was sentenced to 15 months in federal prison and three years’ supervised release.
“Corruption by any public official or law enforcement officer is unacceptable. Mr. Herrera dishonored both himself and the law he swore to uphold, as well as the justice system he represents, by allowing a free flow of criminal activity in and out of the prison,” said Aubree M. Schwartz, Acting Special Agent in Charge of the FBI Portland Field Office. “Today’s sentence should send a strong message to all who abuse their positions for personal gain: we will not accept corruption in any form, or at any level.”
“By smuggling drugs, a cell phone, and other contraband into FCI Sheridan, Herrera exchanged the safety and security of the entire institution for his own selfish gain. Today’s sentencing shows that correctional officers who accept bribes and bring contraband into federal prisons will be held accountable for their crimes,” said Zachary Shroyer, Special Agent in Charge of the Department of Justice Office of the Inspector General Western Region.
According to court documents, from April 2015 until he was placed on administrative leave in December 2019, Herrera was employed as a correctional officer at the Federal Correctional Institution in Sheridan, Oregon, a medium security federal prison. Herrera used his position to introduce contraband into the facility for the benefit of select inmates, including Donte Hunt, 40, of Portland, who at the time was in custody pending trial on federal drug, gun, and money laundering charges. In the spring of 2019, Herrera started bringing contraband items such as food, clothing, and cigarettes into the facility, which he gave to Hunt.
Later, Herrera brought Hunt marijuana; Suboxone, a Schedule III narcotic; Yeezy brand designer sneakers; and a cell phone. Herrera obtained the items from Elizabeth McIntosh, 34, a non-incarcerated associate of Hunt’s. On at least one occasion, Herrera allowed Hunt to use a staff phone at the prison to call McIntosh to arrange the delivery of contraband to Herrera. Herrera met McIntosh on multiple occasions to obtain items for Hunt and accepted payment from her on Hunt’s behalf.
On September 24, 2020, a federal grand jury in Portland returned an indictment charging Herrera, Hunt, and McIntosh with conspiracy and bribing a public official. Herrera and Hunt were also charged with providing contraband in prison.
On May 19, 2022, Herrera pleaded guilty to conspiracy, providing contraband in prison, and accepting a bribe as a public official.
On December 18, 2023, Hunt pleaded guilty to conspiracy and bribing a public official. He was sentenced today to 15 months in federal prison to be served concurrently with a 300-month sentence previously imposed from his underlying criminal case.
On November 29, 2023, McIntosh pleaded guilty to a one-count criminal information charging her with misprision of felony and, on February 13, 2023, she was sentenced to one year of probation.
This case was investigated by the FBI and the Department of Justice Office of Inspector General with assistance from the Federal Bureau of Prisons, Portland Police Bureau, and IRS-Criminal Investigation. It was prosecuted by Ethan Knight and Katherine Rykken, Assistant U.S. Attorneys for the District of Oregon.
Former Cashier at Veterans Affairs Medical Center Sentenced to Prison for Stealing from Patients and Engaging in Pandemic Assistance FraudRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to six months of imprisonment, to be followed by two years of supervised release, in connection with his conviction for embezzling money from disabled veterans’ accounts and conducting a mail fraud scheme to obtain pandemic unemployment assistance, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge Nora Barry Fischer imposed the sentence on Corey Mizell, 51.
According to information presented to the Court, Mizell previously worked as an agent cashier at the H. John Heinz III Department of Veterans Affairs (VA) Medical Center. In January 2021, the sister of a deceased veteran called the VA Police after reviewing the balance in her brother’s patient account. According to the sister, her brother was essentially bedridden due to his disability and the COVID-19 pandemic, and thus could not spend the amount of cash withdrawn from his account. The VA Police opened an investigation into the account activity and questioned Mizell, the teller who conducted each withdrawal.
Mizell initially informed the VA Police that someone must have misrepresented their identity to him in order to fraudulently obtain the funds. Mizell also opined that he was an easy target for such a scheme since he recently had become an agent cashier. The investigation revealed that Mizell would call for authorization to withdraw funds from patients who were either on COVID lockdown or who could not leave their room without an escort due to their disabilities. The U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) confronted Mizell after driving by his residence to find the backyard and exterior of his home being remodeled.
Following his interview with the VA-OIG, Mizell provided a written confession in which he admitted to “fraudulently taking money…from accounts of veterans.” Mizell, also a wedding DJ, attributed his conduct to losing income during the pandemic and unpaid bills. Mizell identified three veterans from whom he took money, estimating the total amount stolen as $17,660, and resigned from the VA in April 2021.
Mizell omitted from his written confession that he also embezzled funds from a fourth veteran and that he also fraudulently applied for and obtained pandemic unemployment assistance. A separate investigation conducted by the U.S. Department of Labor Office of Inspector General revealed that Mizell filed an electronic application for pandemic benefits in April 2020. Despite working for the VA since 2016, Mizell falsely stated that he was not a federal employee. Beginning in May 2020, Mizell falsified that he was not working full time, when he was in fact working full time as an agent cashier. After his resignation from the VA, Mizell certified on a weekly basis that he was unemployed due to the pandemic. These falsifications allowed Mizell to collect pandemic benefits totaling $38,400.
In imposing Mizell’s sentence, Judge Fischer denied the defendant’s request for a non-incarceration sentence, finding it striking that Mizell, himself a veteran, embezzled money from other veterans. The judge further stated that Mizell did not just steal money from the government, but also stole money from veterans and their families, with some of Mizell’s victims so disabled that they could not even walk to his cashier window. Judge Fischer also ordered Mizell to serve the first six months of his supervised release (following his imprisonment) at home on an electronic location monitor, and to pay over $57,000 in restitution to the four veterans and the government.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Department of Labor Office of Inspector General and Department of Veterans Affairs Office of Inspector General for the extensive and collaborative investigation leading to the successful prosecution of Mizell.
Florida Man Sentenced to Prison for Not Paying Employment TaxesRead the Press Release
A Florida man was sentenced today to 30 months in prison for failing to pay over taxes that he withheld from his employees’ paychecks.
According to court documents and evidence presented in court, Timothy Meade, of Fort Myers, Florida, operated a prison phone call service under several business names. From 2011 through 2021, he withheld taxes from his employees’ paychecks but did not pay over to the IRS the full amount of the taxes he withheld. He also did not pay the business’ portion of his employees’ Social Security and Medicare taxes. The IRS attempted to collect the taxes, but Meade changed the call service’s names and bank accounts to thwart the IRS’ collection efforts.
In total, Meade caused a tax loss of $971,130 to the IRS.
In addition to the prison sentence, U.S. District Court Judge Sheri Polster Chappell for the Middle District of Florida ordered Meade to serve three years of supervised release and to pay $971,130 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida and Acting Special Agent in Charge Lani Rosado-Espinal of IRS Criminal Investigation’s Tampa Field Office made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Yolande Viacava for the Middle District of Florida are prosecuting the case.
Florida Man Sentenced to Prison for Not Paying Employment TaxesRead the Press Release
A Florida man was sentenced today to 30 months in prison for failing to pay over taxes that he withheld from his employees’ paychecks.
According to court documents and evidence presented in court, Timothy Meade, of Fort Myers, Florida, operated a prison phone call service under several business names. From 2011 through 2021, he withheld taxes from his employees’ paychecks but did not pay over to the IRS the full amount of the taxes he withheld. He also did not pay the business’ portion of his employees’ Social Security and Medicare taxes. The IRS attempted to collect the taxes, but Meade changed the call service’s names and bank accounts to thwart the IRS’ collection efforts.
In total, Meade caused a tax loss of $971,130 to the IRS.
In addition to the prison sentence, U.S. District Court Judge Sheri Polster Chappell for the Middle District of Florida ordered Meade to serve three years of supervised release and to pay $971,130 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida and Acting Special Agent in Charge Lani Rosado-Espinal of IRS Criminal Investigation’s Tampa Field Office made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Yolande Viacava for the Middle District of Florida are prosecuting the case.
Five Men Indicted in Connection with a Drug Trafficking OrganizationRead the Press Release
CONCORD – Five men have been indicted in connection with a drug trafficking organization, U.S. Attorney Jane E. Young announces.
The defendants were indicted for conspiracy to distribute and possess with intent to distribute controlled substances, namely fentanyl and methamphetamine. Three defendants were also charged with one count each of distribution of controlled substances. Over the past week, law enforcement arrested four of these defendants. One defendant remains a fugitive.
According to the charging documents and statements made in court, the defendants conspired to distribute and possess with intent to distribute controlled substances between October 13, 2023 and March 12, 2024.
The following defendants have been indicted in connection with these charges:
- Jose Luis Guerrero Nunez, who is in federal custody.
- Carlos Alejandro Chevalier Santos, who is in federal custody.
- Eddy Mendez Carmona, who is in custody on unrelated charges.
- Juan Carlos De Los Santos Romero, who remains a fugitive.
- Luis Guerrero Cabral, who was released.
The charging statute provides a sentence of no greater than 20 years in prison, at least 3 years of supervised release, and a fine of up to $1,000,000. 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.
The Drug Enforcement Administration led the federal investigation. The Hampton Police Department, Seabrook Police Department, Portsmouth Police Department, and Methuen Massachusetts Police Department provided valuable assistance. Assistant U.S. Attorneys Kasey Weiland and Heather Cherniske are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Final Defendant in 2020 Drive-by-Shooting of Court Security Officers Sentenced to Life in PrisonRead the Press Release
SAN FRANCISCO – Robert Alvin Justus, Jr. was sentenced today to life in prison for his role in the May 29, 2020, drive-by shooting at the Ronald V. Dellums Federal Building and U.S. Courthouse in Oakland, Calif., that resulted in the murder of Protective Services Officer (“PSO”) Dave Patrick Underwood and the attempted murder of a second PSO. The sentence was handed down by the Hon. Yvonne Gonzalez Rogers, United States District Judge, after Justus was convicted by a jury of aiding and abetting the murder and attempted murder following a two-week trial. In 2022, Justus’s co-defendant Steven Carrillo, was sentenced to serve 41 years in prison followed by a lifetime of supervised release for his role in the crimes.
“With this sentence, the Justice Department has ensured that both of the defendants responsible for brutally murdering a law enforcement officer and seriously wounding another are held accountable for their heinous crimes,” said Attorney General Merrick B. Garland. “Law enforcement officers serve their communities at great risk to themselves, and anyone who targets these brave men and women will be met with the full force of the Justice Department.”
“The defendant and Mr. Carrillo tried to destabilize our government by attacking the courts, killing one protective services officer and wounding another as they guarded the federal courthouse,” said U.S. Attorney Ismail Ramsey for the Northern District of California. “The loss of Mr. Underwood to his family, friends, and the community is incalculable, and the wounding of the second officer has permanently altered his life and that of his family. Today's sentence punishes this heinous conduct and signals any like-minded individuals who would attack those guarding our courts and other public institutions that we will find and prosecute them to the fullest extent of the law.”
"Justus and Carrillo ambushed two federal protective service officers in fulfillment of a conspiracy fueled by extremist beliefs. Now they will both spend the rest of their lives in prison,” said FBI Special Agent in Charge Robert K. Tripp. “The senseless murder of Officer Underwood and the serious injury done to Officer Mifkovic cannot be undone, but these two subjects have been held accountable. We will continue to stand with our partners to investigate politically motivated acts of violence and keep the American people safe.”
“ATF is pleased to hear today’s sentence,” said Special Agent in Charge Jennifer Cicolani, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Every day members of law enforcement put their lives on the line in the pursuit of ensuring the safety and wellbeing of the public. This was a senseless crime that resulted in the tragic loss of Protective Services Officer Underwood. While, this verdict does not bring him back, we hope that his family and our community as a whole can find comfort in knowing that this violent offender will spend the rest of his life in jail.”
The evidence at trial established that Justus, 34, of Millbrae, was the driver of the vehicle from which Steven Carrillo, 35, of Santa Cruz fired the gunshots that killed Officer Underwood and wounded the second officer. On May 29, 2020, at approximately 9:27 p.m., Justus parked a white Ford Econoline van directly across the street from the federal courthouse building in Oakland on Jefferson Street. The van was on the southeast corner in the spot closest to the intersection with an unobstructed view of the guard post where Officer Underwood and his partner that evening stood guard to protect the building and its occupants. At approximately 9:44 p.m., the exterior lights of the van turned on and Justus drove the van north on Jefferson Street toward the guard post. The passenger-side sliding door opened, and Carrillo fired numerous rounds from an AR-style rifle toward the guard post, killing Officer Underwood and seriously injuring his partner. The image below showing the shooting in progress as Justus drove the white van across the intersection is from a courthouse security camera and was in evidence at trial.
From a courthouse security camera, the image shows the shooting in progress as Justus drove the white van across the intersection.
The trial ending in Justus’s conviction contained ominous evidence of the leadup to participation in the drive-by shooting. For example, Justus and Carrillo shared an allegiance to a anti-government movement called Boogaloo. In February of 2020, Justus commented on Facebook that he had a “bloodlust for police,” and in April 2020, he corresponded with an armed anti-government militia group he was interested in joining. On May 27, 2020, Justus posted an image depicting a police officer being shot in the head with a caption reading “Speak to cops in a language they understand.” In addition, on the day before the shooting, Carrillo posted a video of a mob attacking police cruisers and commented, “[T]his needs to be nationwide. It’s a great opportunity to target the specialty soup bois”—a Boogaloo slang term for federal agents. Justus responded to Carrillo’s post that same day, writing “Let’s boogie.”
The trial evidence demonstrated that on the day of the shooting Carrillo and Justus planned to capitalize on protests being planned in Oakland in response to the death of George Floyd. They hoped their attack would spark further anti-government violence. Carrillo and Justus met in a parking lot in San Leandro before the two circled the downtown area in Oakland several times. In the hour leading up to the shooting, Justus exited the van twice to scout the area on foot and locate targets. Investigators from the FBI, OPD and other agencies located security video footage from numerous locations throughout Oakland showing Justus’s movements on both occasions when he left the white van but returned before the shooting. After the shooting, Justus drove Carrillo back to Millbrae and the two separated.
The incident set off an eight-day manhunt. During this time, Justus destroyed digital and physical evidence connecting him to the shooting, continued to post anti-law enforcement content on Facebook, and corresponded with Carrillo about meeting in the future. Eventually, Carrillo was captured at his residence in Ben Lomond, Calif., -- but not before Carrillo killed a Santa Cruz Sheriff’s Deputy and injured another. Several days later, Justus became aware that he was under investigation and travelled to the Federal Building in San Francisco where he met with the FBI and admitted to his involvement in the shooting.
The jury convicted Justus of Aiding and Abetting the Murder of a Federal Employee and Aiding and Abetting the Attempted Murder of a Federal Employee, both in violation of 18 U.S.C. §§ 1114(3), 1111, 2. Pursuant to today’s sentence, Justus will serve the rest of his life in prison pursuant to the aiding and abetting murder charge and a twenty-year concurrent sentence pursuant to the aiding and abetting attempted murder charge.
On February 11, 2022, Carrillo pleaded guilty to two federal charges related to the May 29, 2020, shooting—use of a firearm in furtherance of a crime of violence resulting in death, in violation of 18 U.S.C. §§ 924(j)(1) and 2, and attempted murder of a person assisting an officer of the United States Government, in violation of 18 U.S.C. §§ 1114(3), 1111. On June 3, 2022, Judge Gonzalez Rogers sentenced Carrillo to serve 41 years in prison followed by a lifetime of supervised release for his role in the crimes. Carrillo also received a life sentence in Santa Cruz County Superior Court in connection with his murder of the Santa Cruz Sheriff’s Deputy.
The FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FPS, and the U.S. Marshal Service investigated the case, with assistance from the Oakland Police Department and the Santa Cruz County Sheriff’s Office.
Assistant United States Attorneys Jonathan U. Lee and John C. Bostic are prosecuting the case with the assistance of Trial Attorney Jessica Fender of the National Security Division’s Counterterrorism Section, Yenni Weinberg, and Lynette Dixon.
Final Defendant in 2020 Drive-by-Shooting of Court Security Officers Sentenced to Life in PrisonRead the Press Release
Robert Alvin Justus Jr., 34, of Millbrae, California, was sentenced on Friday to life in prison for his role in the May 29, 2020, drive-by shooting at the Ronald V. Dellums Federal Building and U.S. Courthouse in Oakland, California, that resulted in the murder of Protective Services Officer (PSO) Dave Patrick Underwood and the attempted murder of a second PSO. In 2022, Justus’s co-defendant, Steven Carrillo, was sentenced to 41 years in prison followed by a lifetime of supervised release for his role in the crimes.
“With this sentence, the Justice Department has ensured that both of the defendants responsible for brutally murdering a law enforcement officer and seriously wounding another are held accountable for their heinous crimes,” said Attorney General Merrick B. Garland. “Law enforcement officers serve their communities at great risk to themselves, and anyone who targets these brave men and women will be met with the full force of the Justice Department.”
According to court documents, Justus was convicted by a jury of aiding and abetting the murder and attempted murder following a two-week trial. The evidence established that Justus was the driver of the vehicle from which Steven Carrillo, 35, of Santa Cruz, fired the gunshots that killed Officer Underwood and wounded the second officer.
On May 29, 2020, at approximately 9:27 p.m., Justus parked a white Ford Econoline van directly across the street from the federal courthouse building in Oakland on Jefferson Street. The van was on the southeast corner in the spot closest to the intersection with an unobstructed view of the guard post where Officer Underwood and his partner that evening stood guard to protect the building and its occupants. At approximately 9:44 p.m., the exterior lights of the van turned on and Justus drove the van north on Jefferson Street toward the guard post. The passenger-side sliding door opened, and Carrillo fired numerous rounds from an AR-style rifle toward the guard post, killing Officer Underwood and seriously injuring his partner. The image below shows the shooting in progress as Justus drove the white van across the intersection is from a courthouse security camera and was in evidence at trial.
From a courthouse security camera, the image shows the shooting in progress as Justus drove the white van across the intersection.The trial ending in Justus’s conviction contained ominous evidence of the leadup to participation in the drive-by shooting. For example, Justus and Carrillo shared an allegiance to an anti-government movement called Boogaloo. In February 2020, Justus commented on Facebook that he had a “bloodlust for police,” and in April 2020, he corresponded with an armed anti-government militia group he was interested in joining. On May 27, 2020, Justus posted an image depicting a police officer being shot in the head with a caption reading “Speak to cops in a language they understand.” In addition, on the day before the shooting, Carrillo posted a video of a mob attacking police cruisers and commented, “[T]his needs to be nationwide. It’s a great opportunity to target the specialty soup bois” – a Boogaloo slang term for federal agents. Justus responded to Carrillo’s post that same day, writing “Let’s boogie.”
The trial evidence demonstrated that, on the day of the shooting, Carrillo and Justus planned to capitalize on protests being planned in Oakland in response to the death of George Floyd. They hoped their attack would spark further anti-government violence. Carrillo and Justus met in a parking lot in San Leandro before the two circled the downtown area in Oakland several times. In the hour leading up to the shooting, Justus exited the van twice to scout the area on foot and locate targets. Investigators from the FBI, Oakland Police Department and other agencies located security video footage from numerous locations throughout Oakland showing Justus’s movements on both occasions when he left the white van but returned before the shooting. After the shooting, Justus drove Carrillo back to Millbrae and the two separated.
The incident set off an eight-day manhunt. During this time, Justus destroyed digital and physical evidence connecting him to the shooting, continued to post anti-law enforcement content on Facebook and corresponded with Carrillo about meeting in the future. Eventually, Carrillo was captured at his residence in Ben Lomond, California, but not before Carrillo killed a Santa Cruz Sheriff’s Deputy and injured another. Several days later, Justus became aware that he was under investigation and travelled to the Federal Building in San Francisco where he met with the FBI and admitted to his involvement in the shooting.
On Feb. 11, 2022, Carrillo pleaded guilty to two federal charges related to the May 29, 2020, shooting – use of a firearm in furtherance of a crime of violence resulting in death and attempted murder of a person assisting an officer of the U.S. government. On June 3, 2022, Judge Gonzalez Rogers sentenced Carrillo to serve 41 years in prison followed by a lifetime of supervised release for his role in the crimes. Carrillo also received a life sentence in Santa Cruz County Superior Court in connection with his murder of the Santa Cruz Sheriff’s Deputy.
The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Protective Service, and U.S. Marshals Service investigated the case, with assistance from the Oakland Police Department and the Santa Cruz County Sheriff’s Office.
Assistant U.S. Attorneys Jonathan U. Lee and John C. Bostic for the Northern District of California prosecuted the case, with assistance from Trial Attorney Jessica Fender of the National Security Division’s Counterterrorism Section.
Fentanyl Dealer Sentenced to 20 Years in PrisonRead the Press Release
A Dallas fentanyl trafficker who admitted to dealing more than 142,000 counterfeit pills was sentenced today to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Terrill Antwan Ray, 48, pleaded guilty in April 2023 to conspiracy to possess with intent to distribute a controlled substance and was sentenced Monday by Chief U.S. District Judge David Godbey, who called the amount of drugs in the case “staggering.
In plea papers, Mr. Ray admitted that during a 2019 raid on his apartment, law enforcement seized more than 28,000 counterfeit fentanyl pills weighing more than 12.5 kilograms.
During subsequent raids on the homes of two coconspirators, law enforcement seized an additional 114,000 counterfeit fentanyl pills, including 105,000 belonging to Mr. Ray, that weighed a combined 42 kilograms. They also seized an electromagnetic foil capping machine, hundreds of empty plastic pill bottles, more than $11,000 in U.S. currency, and two firearms.
In plea papers, Mr. Ray admitted to distributing more than 142,000 counterfeit fentanyl pills marked to resemble hydrocodone and oxycodone.
Court documents detail text messages in which Mr. Ray and a down-line distributor discussed drug debts and referenced “school busses” (code for narcotics), “blues” (slang for oxycodone), and “dros” (slang for hydrocodone).
“Today’s sentencing of Terrill Ray exemplifies the commitment of DEA Dallas and our numerous law enforcement partners to relentlessly pursue those who distribute illicit fentanyl,” said DEA Dallas Special Agent in Charge, Eduardo A. Chávez. “Mr. Ray is being held accountable for the poison that found its way into our community by his hand and the tens of thousands of pills that could have found their way into our love ones’ hands. DEA Dallas remains relentless in our efforts to rid illicit fentanyl from the streets of Dallas, while equally supporting and standing firm with those family members and friends affected by the grip of illicit substance abuse.”
The Drug Enforcement Administration's Dallas Division and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department, DeSoto Police Department and Cedar Hill Police Department. Assistant U.S. Attorney Linda Requénez and Abe McGlothin (fmr) prosecuted the case.
The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.