Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
25 January 2024
North Carolina Man Arrested for Trying to Extort Millions of Dollars from D.C.-Based CompanyRead the Press Release
WASHINGTON — A North Carolina man was arrested yesterday for allegedly stealing sensitive data from his prior employer, a D.C.-based company, and threatening to publish this data unless the company paid him $2.5 million. The announcement was made by U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division.
Cameron Curry, 25, of Charlotte, North Carolina, is charged in a criminal complaint filed in the District of Columbia with felony extortion for making an interstate threat to injure the property or reputation of another in order to extort money. Curry was arrested yesterday by the FBI in the Charlotte, North Carolina area. He made his initial appearance in the Western District of North Carolina earlier today.
According to court documents, Curry had been working as a contract employee with the victim company but was told on December 5, 2023, that his last day of employment would be December 15, 2023. On December 11, 2023, posing under the pseudonym of “Loot,” Curry allegedly began sending a series of emails to the victim company and its employees threatening to publish certain sensitive financial records and personally identifiable information of the victim company’s employees. In one email, Curry allegedly wrote, “If you wish to reclaim your data, we recommend doing so promptly at 2.5 million USD in order to save your company and stocks, as each subsequent month will incur a $100,000 USD increase.” Between December 11 and January 23, Curry allegedly sent over 60 similarly threatening emails to the company.
As alleged in the complaint, law enforcement identified Curry as the individual posing as “Loot” by metadata in the communications he sent to the company, user information for the email address he used to send these communications, and account details for the cryptocurrency wallet to which he directed the victim to send him the ransom he demanded, among other evidence.
On January 24, 2024, when the FBI sought to execute a search warrant at Curry’s residence, Curry allegedly refused to leave the residence and then sent a series of messages to the victim company threatening to publish its data if he were to be arrested.
In court earlier today in the Western District of North Carolina, Curry made his initial appearance on the charges against him and waived his right to a preliminary hearing. The Honorable David C. Keesler scheduled a detention hearing for next Monday, January 29, on the government’s request to detain Curry. Curry remains in custody pending that hearing.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of North Carolina.
This case is being investigated by the FBI’s Washington Field Office. Valuable assistance was provided by the FBI’s Field Office in Charlotte, North Carolina.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Presbyterian Hospital Pays over $800,000 to Settle Claims that Physician Practices Improperly Billed Government Health Care ProgramsRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that New York Presbyterian Hospital (NYPH) has agreed to pay $801,000 to resolve claims that two radiology practices improperly billed Medicare, Medicaid and TRICARE for images used in image guided radiation therapy treatments (IGRT) provided to cancer patients. The settlement agreement, which resolved claims under the Federal False Claims Act, was approved on January 19, 2024 by United States District Judge William F. Kuntz, II.
“The defendants provided substandard care to cancer patients by not properly or timely reviewing medical imaging and then billed taxpayer funded healthcare programs for these shoddy services,” stated United States Attorney Breon Peace. “My Office is committed to holding healthcare providers accountable for such conduct.”
Mr. Peace thanked the U.S. Department of Health and Human Services, Office of Inspector General, Federal Bureau of Investigation, Office of Personnel Management, Defense Healthcare Agency, and the New York State Office of Attorney General’s Medicaid Fraud Control Unit for their work on this case.
Radiation Therapist Associates, P.C. (RTA) and Leading Edge Radiation Oncology Services, PLLC (LEROS), which are no longer operating, provided outpatient radiation oncology services to several Brooklyn communities. RTA was a physician practice located within Methodist Hospital and operated under a contract with a predecessor of NYPH. LEROS was operated by an overlapping group of physicians and was a joint venture between NYPH’s predecessor and LEROS.
IGRT is a type of cancer treatment that uses imaging technologies such as PET, MRI, and CT to deliver radiation more accurately and safely to cancer cells. It uses periodically taken images to guide the precise delivery of radiation.
The United States claimed that between 2012 and 2018, RTA and LEROS billed for images utilized in IGRT when such images were either not reviewed, or were not timely reviewed, and therefore were not reasonable and necessary. Further, the investigation found that initial consultation sessions at RTA were in some instances billed at a higher coding level than appropriate.
Under the terms of the agreement with the United States and the State of New York, NYPH will pay a total of $801,000, with $694,999.71 going to the United States and $106,000.29 to the State of New York. These funds will go to the Medicare, Medicaid, and TRICARE programs.
The settlement includes the resolution of a civil action brought under the qui tam or whistleblower provisions of the False Claims Act. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The claims resolved by the settlement are allegations only and there has been no admission of or determination of liability.
The case is being handled by Assistant U.S. Attorney Matthew Silverman of the Office’s Civil Division.
E.D.N.Y. Docket No. 17-CV-6356
United States ex rel. RAD Claim, LLC v. Radiation Therapist Associates, P.C. et al.,
New York Man Pleads Guilty to Passing Counterfeit Currency at Stores in Monroe CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ahmed Brima, age 36, of Staten Island, New York, pleaded guilty today before U.S. District Court Judge Julia K. Munley, to the charge of passing counterfeit federal reserve notes.
According to United States Attorney Gerard M. Karam, Brima admitted that on May 16, 2023, he passed or attempted to pass counterfeit $100 bills at the CVS Pharmacy in East Stroudsburg, the Rite Aid in Stroudsburg, the Rite Aid in East Stroudsburg, the Walgreens in Stroud Township, and the Dollar General in East Stroudsburg. Brima was apprehended after the incident at the CVS Pharmacy in East Stroudsburg. The total amount of counterfeit currency that Brima passed, attempted to pass, or possessed was $3800.
The charges resulted from an investigation conducted by the United States Secret Service and the Stroud Area Regional Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
The maximum penalty under federal law for each charge is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
###
New River Valley Drug Dealer Sentenced to More than 11 Years in PrisonRead the Press Release
ROANOKE, Va. – A Dublin man who engaged in drug dealing in Roanoke while armed with a weapon was sentenced this week to 11 and a half years in federal prison.
Nicholaus Francois Wines, 39, pleaded guilty in August 2023 to possessing 500 grams or more of methamphetamine with the intent to distribute and to unlawfully possessing a firearm after having been previously convicted of a felony offense.
According to court documents, on November 19, 2021, Wines was a fugitive who had warrants for his arrest out of Roanoke County and Pulaski County. On that date, law enforcement utilized a source to order a quantity of methamphetamine from Wines, and when Wines arrived in Roanoke to make the delivery, he was arrested on his outstanding charges. Incident to his arrest, law enforcement discovered that not only did Wines have a semi-automatic pistol tucked into his pants, he also was in possession of 503 grams of methamphetamine as well as approximately $9,500 in U.S. Currency.
United States Attorney Christopher R. Kavanaugh, Special Agent in Charge of the FBI’s Richmond Division Stanley M. Meador, and Superintendent Gary T. Settle of the Virginia State Police announced the sentence today.
The Virginia State Police, Roanoke City and County Police Departments, Salem City Police Department, the Botetourt-Rockbridge Drug Task Force, which consists of Botetourt County Sheriff's Office, Rockbridge County Sheriff's Office and Buena Vista Police Department, and the Federal Bureau of Investigation participated in the investigation of the case.
Assistant U.S. Attorney Coleman Adams prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
New Orleans Men Plead Guilty to Possessing Cars Stolen from Norfolk Southern Railyard and Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – DERRIN RILEY, age 28, and JONATHAN FRANK, age 40, residents of New Orleans, pleaded guilty on January 23, 2024, before U.S. District Judge Jay C. Zainey. RILEY pleaded guilty to one count, and FRANK pleaded guilty to two counts, of possessing goods stolen from an interstate shipment, in violation of Title 18, United States Code, Section 659. RILEY also pleaded guilty to possession with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D). FRANK also pleaded guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, on March 20, 2023, a white 2023 Ford Explorer ST was stolen from the Norfolk Southern Automotive Distribution Facility. On March 27, 2023, a Ford Explorer Timberline and a stone blue metallic 2023 Ford Explorer ST were also stolen from that Facility.
Between March 30 and April 3, 2023, FRANK was seen on surveillance video driving both stolen Ford Explorer STs while in possession of a Smith & Wesson handgun. On April 3, 2023, RILEY was seen on surveillance video exiting the stolen Ford Explorer Timberline with a large bag of marijuana which, it was determined, he intended to distribute. Two other individuals riding in the stolen car with RILEY possessed firearms.
Each count of possessing a stolen car carries a sentence of up to 10 years imprisonment , up to a $250,000 fine, and up to three years of supervised release. As to his conviction for possession with intent to distribute marijuana, RILEY faces up to 5 years imprisonment , up to a $250,000 fine, and a minimum of two years of supervised release. As to his conviction for felon in possession of a firearm, FRANK faces up to 15 years imprisonment , up to a $250,000 fine, and up to three years of supervised release. As to each count of conviction, FRANK faces payment of a mandatory $100 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.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Mexico Man Sentenced to More Than 27 Years in Prison for Cocaine DistributionRead the Press Release
PECOS – An Anthony, NM, man was sentenced this week to 327 months in prison for his role in a drug trafficking organization that distributed cocaine.
According to court documents, Gilberto Hernandez, aka “G”, 30, was the leader of the Hernandez drug trafficking organization (DTO). From August 2021 until November 2022, the Hernandez DTO trafficked approximately 58 kilos of cocaine throughout Texas, New Mexico and Colorado.
On May 26, 2023 Hernandez pleaded guilty to eight counts of possession with intent to distribute cocaine.
Five other co-defendants of Hernandez have been sentenced and one is awaiting sentencing. Cesar Rodarte, aka El Gordo, 38, of Anthony, NM, after pleading guilty to one count of conspiracy to possess with intent to distribute cocaine, was sentenced this week to 151 months in prison.
Daniel Ochoa Meza, 37, of Monahans, after pleading guilty to one count of conspiracy to possess with intent to distribute cocaine, was sentenced this week to 135 months in prison.
Anthony Bustos, Sr., aka Tony, 60, of Monahans was sentenced on September 22, 2023 to 87 months in prison. Bustos pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
Armiro Bernal Cabello, 45, of Fort Stockton, was sentenced on August 29, 2023 to 121 months in prison. Cabello pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
Juan Jose Mora, 41, of Vado, NM, was sentenced on May 23, 2023 to 27 months in prison. Mora pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
George Daniel Mendoza, 31, of Deming, NM, pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine. Mendoza is set to be sentenced on February 27, 2024.
“In a little over a year, the Hernandez DTO peddled over 127 pounds of cocaine throughout Texas, Mexico and Colorado,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I applaud the DEA for their diligence and persistence in taking down this drug organization.”
“If you attempt to set up a criminal enterprise in one of our communities, you will be introduced to the men and women of the DEA,” said Towanda Thorne-James, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division. “We will stop at nothing to shut you down and make sure you face the same justice handed down to Mr. Hernandez.”
The DEA’s Alpine Resident Office investigated the case.
Assistant U.S. Attorney Amy Greenbaum prosecuted the case.
###
New Kensington Man Sentenced to Five Years in Prison and Four Years of Supervised Release for Conspiring to Distribute FentanylRead the Press Release
JOHNSTOWN, Pa. – A resident of New Kensington, Pennsylvania, has been sentenced in federal court to a total of 60 months in prison followed by four years of supervised release on his conviction of conspiracy to distribute fentanyl, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Devan Nicholson, 30.
According to information presented to the court, from May 2022 to February 2023, in the Western District of Pennsylvania, Nicholson conspired to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl. Nicholson was intercepted on a federal wiretap obtaining quantities of fentanyl that he distributed to others.
Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Nicholson. Additional agencies participating in this investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Mobile Man Sentenced to 15 Years for Illegally Possessing FirearmRead the Press Release
MOBILE, AL – A Mobile, Alabama man was sentenced today to 15 years in prison for being a felon in possession of a firearm.
According to court documents, following a trial held in October 2023, the jury convicted James Pettway of being a felon in possession of a firearm. Pettway has at least two prior felony convictions and is therefore prohibited from possessing a firearm. In November 2022, members of the Mobile Police Department encountered Pettway during a robbery investigation. When law enforcement approached Pettway, he had a firearm in his waistband. Today United States District Judge Terry F. Moorer sentenced Pettway to 15 years in the custody of the Bureau of Prisons, which is the statutory maximum sentence. The term of imprisonment will be followed by a 3-year term of supervised release.
U.S. Attorney Sean Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mobile Police Department investigated the case.
Assistant U.S. Attorneys Tandice Blackwood and Beth Stepan prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice Project Safe Neighborhoods (PSN) program.
Missouri Man Who Sexually Assaulted Children Sentenced to 199 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Thursday sentenced a man who possessed child pornography and admitted sexually abusing two children to 199 months in prison.
Judge Clark also ordered Kyle Mathew Bray, 32, to be placed on supervised release for life after his prison term ends. Bray, who was living in Lincoln County at the time his crimes were discovered, pleaded guilty in August to one count of receipt of child pornography and one count of possession of child pornography. He admitted using the Telegram app to receive child pornography, which he stored on his phone, and join Telegram groups focused on children. Bray also admitted sexually abusing a 4-year-old and an 8-year-old.
The case was investigated by the Troy Police Department, the Lincoln County Sheriff’s Department, the Franklin County Sheriff’s Office, and the FBI. Assistant U.S. Attorney Michael Hayes prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Member of White Supremacist Group Convicted of Defacing Michigan Synagogue with Neo-Nazi SymbolsRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal jury convicted Nathan Weeden, 23, of Houghton, Michigan for conspiring with others and defacing Temple Jacob – a Jewish synagogue in Hancock, Michigan – with swastikas and symbols associated with The Base, a multi-state, white supremacist group.
“Today’s swift conviction sends a strong message that hate will not be tolerated in Michigan’s Upper Peninsula,” said U.S. Attorney Mark Totten, who was in Marquette for the trial. “No one should be the target of hate because of their race, ethnicity, religion, or any other status. When hateful words become hateful acts, my office will use every tool we have to protect the public and secure justice.”
“This defendant shamelessly desecrated Temple Jacob when he emblazoned swastikas — a symbol of extermination — on their Temple walls,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Such conduct is unacceptable and criminal under any circumstances but doing so in furtherance of a self-described ‘Operation Kristallnacht’ conspiracy is beyond disgraceful. Antisemitism has no place in our society, and the Justice Department will aggressively prosecute white supremacists who seek to threaten and intimidate others from exercising their federally and constitutionally protected rights.”
In September 2019, Nathan Weeden, Richard Tobin, and Yousef Barasneh – all members of The Base, a multi-state, white supremacist organization – used an encrypted messaging platform to discuss vandalizing property associated with African Americans and Jewish Americans. Weeden and his co-conspirators dubbed their plan, “Operation Kristallnacht,” which in German means “Night of Broken Glass.” This term referenced events that took place on November 9-10, 1938, in which Nazis murdered Jews and burned and destroyed their homes, synagogues, schools, and places of business. Weeden carried out this plan on September 21, 2019, when he spray-painted swastikas and symbols associated with The Base on the outside walls of Temple Jacob.
The jury convicted Weeden of two counts. The first count is Conspiracy Against Rights under 18 U.S.C. § 241, a civil rights statute that makes it a crime to conspire to injure, oppress, threaten, or intimidate any person in the exercise of their rights. The second count is for Damage to Religious Property under 18 U.S.C. § 247, also a civil rights statute that makes it a crime to intentionally deface, damage, or destroy religious property because of the race or ethnic characteristics of individuals associated with that religious property. Co-conspirators Richard Tobin (see here and here) and Yousef Barasneh (see here and here) were previously convicted of federal crimes in this matter.
"People of all faiths deserve to feel safe in their communities," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI and our law enforcement partners will continue to hold those accountable whose hate-filled aggression violates the civil rights of others. For law enforcement to safeguard against hate and violence, we request the public's assistance in reporting suspicious or threatening behavior by calling 1-800-CALL-FBI (1-800-225-5324) or submitting a tip online at https://www.fbi.gov/"
“Hate and intimidation have no place in Michigan or our communities,” said Special Agent in Charge James Deir of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Office. “The behavior in this conviction is most certainly disturbing, ignorant and intolerable. ATF is laser-focused on ensuring public safety by holding people accountable for their hate-inspired deplorable actions. Houses of worship need to remain safe places where people can go for spiritual redemption and growth. Any attack on a house of worship or a group of people is an attack on our very way of life in this great state.”
The grand jury issued its two-count indictment against Nathan Weeden on June 27, 2023. The indictment was unsealed on June 29, 2023, after the defendant was arrested by the FBI.
This case was prosecuted by Assistant U.S. Attorney Nils Kessler and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section. The FBI investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and Hancock Police Department.
###
Mason City Man Who Threatened to Kill Woman with a Shotgun Sentenced to 10 Years’ Imprisonment for Possession of Firearm by a FelonRead the Press Release
A Mason City, Iowa man who pointed a shotgun at a woman and threatened to kill her, was sentenced today, January 25, 2024, to 10 years in federal prison.
Joseph Fitzgerald, age 64, from Mason City, Iowa, received the prison term after a September 11, 2023, guilty plea to one count of possession of a firearm by a convicted felon and domestic misdemeanant.
Evidence in the case revealed that on November 23, 2022, Fitzgerald pointed a shotgun at a woman he resided with, who was disabled, and threatened to kill her. The woman was able to call 911. When officers arrived on scene, Fitzgerald initially refused to let officers enter the home, but they were eventually able to make contact with the woman, who was still upset by the interaction. Fitzgerald has a lengthy criminal history, including convictions for domestic violence, illegal drugs, and burglary. Notably, Fitzgerald also had eight driving while intoxicated convictions and 13 assault convictions.
Fitzgerald was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 120 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fitzgerald is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Mason City, Iowa Police Department and ATF, and prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3009.
Follow us on Twitter @USAO_NDIA.
Maryland Man Found Guilty of Assault with Intent to Kill While Armed and Other Charges for Road Rage ShootingRead the Press Release
WASHINGTON – Kenneth Miles Davis, Jr., 45, of Maryland, was found guilty by a jury late yesterday of multiple charges arising from the May 19, 2021 road rage shooting directed at a woman and her two children, ages 11 and 5, as well as a bystander, in Northeast Washington, D.C., announced U.S. Attorney Matthew M. Graves and Metropolitan Police Department Chief Pamela A. Smith. The Honorable Rainey Brandt scheduled sentencing for March 29, 2024.
The jury returned its verdict after a three-week trial in the Superior Court, finding Davis guilty of one count of assault with intent to kill while armed, three counts of assault with a dangerous weapon, and four counts of possession of a firearm during a crime of violence.
According to the government’s evidence, at approximately 5:00 pm on May 19, 2021, the defendant was driving his Maserati GranTurismo in heavy rush-hour traffic at the intersection of Kenilworth Avenue NE and Eastern Avenue NE when he suddenly got out of his car with a handgun. Davis fired seven times into the car in front of him, which was occupied by a woman and her two children, then turned and fired six more shots at bystanders. The woman suffered a gunshot wound to her upper arm and the 5-year-old child was cut by broken automobile glass. Fortunately, the 11-year-old child and the bystanders were not injured. Metropolitan Police Department investigators uncovered video evidence that was disseminated to local news outlets, the broadcast of which generated a tip that led to the identification of Davis as the owner of the Maserati, and ultimately, as the shooter.
This case was investigated by the Metropolitan Police Department. Invaluable assistance was provided by the United States Marshals Service from the inception of the case and through trial. It is being prosecuted by Assistant U.S. Attorneys Kathryn Bartz and Gregory Evans of the Major Crimes Unit of the U.S. Attorney’s Office for the District of Columbia.
Man Who Killed Victim with a Water Meter Key was Sentenced to LifeRead the Press Release
A Tulsa man was sentenced today for First Degree Murder in Indian Country after being convicted by a federal jury in Nov. 2022, announced U.S. Attorney Clint Johnson.
U.S. District Judge John F. Heil, III, sentenced Kyle Edwin Freeman, 37, member of the Seminole Tribe of Florida, to life imprisonment.
According to court documents and evidence presented at trial, Freeman had been staying with the victim, Donald Thomas in the days leading up to the murder. Freeman and his girlfriend were in a physical altercation. Witnesses said that Thomas was successful in breaking up the altercation and even exchanged a hug with Freeman, who appeared to be calm. Approximately 20 minutes later, Freeman entered the room with a water meter key and struck Thomas over the head several times killing him.
Freeman will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The FBI, Tulsa Police Department, Muscogee Nation Lighthorse Police Department, and the Creek County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Kenneth Elmore and John E. Brasher prosecuted the case.
Man Sentenced in District of New Hampshire to 20 Years in Prison for Child Exploitation Offenses Occurring in New JerseyRead the Press Release
NEWARK, N.J. – A Concord, New Hampshire, man was sentenced today in federal court to 240 months in prison for the exploitation of a minor in New Jersey and possession of child sexual abuse material, U.S. Attorney Philip Sellinger and U.S. Attorney Jane E. Young announced.
Scott Wilkinson, 39, previously pleaded guilty to one count each of production of child pornography and one count of possession of child sexual abuse material before U.S. District Court Judge Joseph Laplante, who imposed the sentence today in federal court in New Hampshire.
According to documents filed in this case and statements made in court:
Wilkinson traveled from New Hampshire to New Jersey in April 2022, where he engaged in sexual acts with a 12-year-old child. Wilkinson had been corresponding with the child online for approximately one year prior to traveling to New Jersey to meet the child. A video that Wilkinson created of himself engaged in sexual acts with the child was found on his cell phone, as were other images and videos of child sexual abuse material.
In addition to the prison term, Judge Laplante sentenced Wilkinson to 10 years of supervised release.
U.S. Attorney Sellinger and U.S. Attorney Young credited special agents of the FBI the Newark Child Exploitation and Human Trafficking Task force, under the direction of Special Agent in Charge James E. Dennehy; and the Egg Harbor Township Police Department with the investigation leading to today’s sentencing. Valuable assistance was provided by the Concord Police Department.
The government is represented by Assistant U.S. Attorney Lindsey Harteis of the District of New Jersey and Assistant U.S. Attorney Kasey Weiland of the District of New Hampshire.
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.
Lynn Man Sentenced for Trafficking More Than 7,000 Counterfeit Pills Containing FentanylRead the Press Release
BOSTON – A Lynn man was sentenced today in federal court in Boston for his role in a North Shore-based drug trafficking organization (DTO) that manufactured and distributed thousands of counterfeit prescription pills containing narcotics.
Erick Solis Lopez, 25, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 62 months in prison and three years of supervised release. Solis was also ordered to forfeit $18,190, assorted jewelry and two vehicles. In October 2023, Solis pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances.
Solis was among 23 individuals charged in October 2022 in connection with a wide-ranging conspiracy to traffic counterfeit prescription pills. The defendants were subsequently indicted along with two additional alleged co-conspirators in December 2022. According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area. Solis is the third defendant to be sentenced in the case.
Solis was responsible for the distribution of approximately 7,300 counterfeit oxycodone pills containing undisclosed amounts of fentanyl. Solis made daily deliveries of fentanyl pills, powder fentanyl, crack cocaine and marijuana for the DTO. Some of these controlled substances were recovered from a vehicle registered to Solis in a mechanically operated concealed compartment (commonly referred to as a “hide”). The vehicle also contained a fraudulent driver’s license bearing Solis’s photograph.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorneys James E. Arnold and Evan D. Panich of the Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Men Convicted of Conspiracy to Unlawfully Transport Live White-Tailed Deer from Louisiana to MississippiRead the Press Release
Jackson, Miss. – Two Louisiana men pled guilty to conspiracy to violate the Lacey Act, announced U.S. Attorney Todd W. Gee, Acting Special Agent in Charge Stephanie Johnson of the U.S. Fish and Wildlife Service, and Colonel Jerry Carter of the Mississippi Department of Wildlife, Fisheries, and Parks.
Brandon Scott Favre, 49, of Baton Rouge, pled guilty on November 8, 2023; and Jason Martin, 50, of Hackberry, pled guilty on January 19, 2024. Both defendants pled guilty to a misdemeanor charge of conspiring to transport a live white-tailed deer from the state of Louisiana to the state of Mississippi in violation of state and federal laws.
Favre was sentenced to a 4-year term of supervised probation and ordered to pay a $5,000 fine. He was also ordered to implement a four-year Chronic Wasting Disease (CWD) sampling and testing plan on an 850-acre enclosure and ordered to pay $59,808.19 in restitution for the costs of the CWD sampling and testing plan that will be conducted by the Mississippi Department of Wildlife, Fisheries, and Parks (MDWFP). As part of this plan, 40 white-tailed deer will be harvested each of the four years by the MDWFP for CWD testing.
Martin is scheduled to be sentenced on April 3, 2024, and faces a maximum penalty of 1 year imprisonment and a $10,000 fine. A federal magistrate judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents and statements made in open court, from October 2020, through June 2021, Favre and Martin entered into an agreement to transport and receive from Louisiana into Mississippi a live white-tailed deer. In April 2021, Martin transported the deer as agreed upon and delivered to Mistletoe Properties, a permitted 850-acre high-fence enclosure for white-tailed deer operated by Favre, located in Adams County, Mississippi. Once delivered, the deer was put into an unpermitted breeding pen located on the property. The deer was transported from Louisiana without documentation, in violation of Louisiana law, and transported into Mississippi, in violation of Mississippi law, and all in violation of federal law.
Federal law makes it unlawful to transport live white-tailed deer from one state to another without proper documentation and without required animal health records. These records include certifying that captive-bred animals are free from diseases such as chronic wasting disease. The Mississippi Board of Animal Health has declared that white-tailed deer are considered chronic wasting disease susceptible animals and are not allowed entry into Mississippi. The State of Louisiana requires any person who keeps, breeds, raises, contains, harvests, buys, sells, trades, or transfers ownership of any type of farm-raised alternative livestock for commercial purposes shall obtain a farm-raising license prior to engaging in such activity. Additionally, the State of Louisiana requires any person with a farm-raising license to maintain records, for not less than 60 months, of all sales, trades, or transfers of any farm-raised alternative livestock. White-tailed deer are considered farm-raised alternative livestock. Chronic wasting disease is the chief threat to wild deer and elk populations in North America. The disease, which ultimately ends in the death of infected animals, is a transmissible neurological disease that produces small lesions in the brain of deer and elk and is characterized by loss of body condition and behavioral abnormalities.
USFWS Acting SAC Stephanie Johnson stated: "This prosecution is an excellent example of what we can accomplish through the collaboration that occurs every day between the USFWS and our enforcement partners. The MDWFP and USFWS share a vested interest in combating the spread of diseases which threaten our native wildlife populations and are potentially spread through the interstate transport of deer in violation of state and federal laws."
MDWFP Colonel Jerry Carter stated: “The MDWFP takes the interstate transport and unlawful importation of White-tailed deer into the State of Mississippi seriously. We will continue to work collaborative criminal investigations with the U.S. Fish & Wildlife Service & the U.S. Attorney’s Office to detect and prosecute those who choose to violate the laws of this state.”
The Mississippi Department of Wildlife, Fisheries, and Parks – Investigations Unit, and the U.S. Fish and Wildlife Service – Office of Law Enforcement investigated the case.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
Leader of Human Smuggling Organization Pleads Guilty to Conspiracy to Transport Illegal Aliens for ProfitRead the Press Release
PHOENIX, Ariz. – Maria Mendoza-Mendoza, aka “La Guera,” 51, of Honduras, pleaded guilty yesterday to Conspiracy to Transport Illegal Aliens for Profit. The sentencing hearing is scheduled for April 2, 2024, before United States District Judge Raner C. Collins.
Mendoza-Mendoza admitted that she was a leader of a smuggling organization that smuggled over 100 migrants from Honduras into the United States, and that, as a leader, she coordinated alien smuggling and money laundering events. Mendoza-Mendoza admitted she told a co-conspirator she would “bleed out” a guide as punishment and that she stated that a migrant whose family did not pay his fee would be thrown “back in the desert.” She also admitted that the smuggling organization used firearms and that the smuggling involved dangerous risks to the migrants. The government of Honduras extradited Mendoza-Mendoza to the United States in June 2023 to face these charges.
A conviction for Conspiracy to Transport Illegal Aliens for Profit carries a maximum penalty of 10 years in prison.
This prosecution resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security, to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
Homeland Security Investigations-Sells office conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-18-00078-RCC-MAA
RELEASE NUMBER: 2024-008_Mendoza-Mendoza# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Lawrence Man Sentenced to 51 Months in Prison for Illegal ReentryRead the Press Release
BOSTON – A Lawrence man was sentenced in federal court in Boston to illegally reentering the United States after been deported.
Francisco Araujo Lara, 33, was sentenced by U.S. District Court Judge Indira Talwani to 51 months in prison and three years of supervised release. In October 2023, Araujo Lara pleaded guilty to one count of unlawful reentry of a deported alien.
Araujo Lara, a citizen on the Dominican Republic, was deported from the United States in September 2019, after serving an 18-to-30-month state sentence for a fentanyl distribution. Sometime thereafter, Araujo Lara unlawfully reentered the United States. In 2021, he was arrested in Lawrence for distributing fentanyl and possessing cocaine with the intent to distribute it. Araujo Lara pleaded guilty to the state charges and was sentenced to 30 months in state prison.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit prosecuted the case.
Lame Deer meth trafficker sentenced to 20 years in prison for role in large-scale ring based on Crow Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man who admitted to distributing methamphetamine on the Northern Cheyenne Indian Reservation that he received through a large-scale narcotics trafficking organization based on the Crow Indian Reservation was sentenced today to 20 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today.
Joseph John Simpson, 49, pleaded guilty in September 2023 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
“Armed with multiple firearms, including a submachine gun, Simpson was a prolific and dangerous drug dealer who trafficked nearly 10 pounds of meth on the Northern Cheyenne Reservation. He was considered the best customer of an extensive drug conspiracy based on the Crow Reservation with ties to Washington traffickers and a cartel in Mexico. To put it simply, Simpson is dangerous, and the people of the Northern Cheyenne and Crow Nations can rest easier knowing he will spend the next 20 years in federal prison,” U.S. Attorney Laslovich said.
In court documents, the government alleged that from May 2022 to July 2023, law enforcement obtained information from multiple sources that Simpson was distributing meth on the Northern Cheyenne Indian Reservation and elsewhere. Simpson is one of approximately two dozen defendants related to a large-scale, multiple-state narcotics trafficking organization centered on multiple properties on the Crow reservation, including one referred to as Spear Siding. Simpson was considered the “best client” of the organization and was a “top dealer” of meth on the Northern Cheyenne Reservation, along with being the source for other dealers. Simpson is responsible for the distribution of almost 10 pounds of meth, which is the equivalent of 36,240 doses. The government alleged Simpson was integral to the operation, partially because he made sure his sources got paid.
The government further alleged that on July 13, 2023, a Bureau of Indian Affairs officer in Lame Deer observed a pickup truck that appeared to be stolen and was driven by an individual, later identified as Simpson. Law enforcement arrested Simpson after a high-speed pursuit and found him in possession of two pounds of meth, $9,000 in cash and four firearms, including an Uzi submachine gun. Simpson told law enforcement that the $9,000 was drug proceeds.
Assistant U.S. Attorneys prosecuted the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
XXX
Kermit Man Sentenced for Distribution of MethamphetamineRead the Press Release
PECOS – A Kermit man was sentenced this week in federal court in Pecos to 115 months in prison for possession and distribution of methamphetamine and an additional 24 months in prison for a supervised release violation stemming from a felon in possession charge he was sentenced for in 2022 in Midland.
According to court documents, Brian Lee McGill, 43, while serving a term of supervised release on his 2022 conviction in Midland for being a felon in possession of a firearm, failed to stop for deputies with the Winkler County Sheriff’s Department during a traffic stop for speeding. Deputies pursued McGill, who was riding a motorcycle, at speeds as high as 115 miles per hour as McGill drove recklessly on the wrong side of the road and disregarded stop signs. Pursuit came to an end when the motorcycle either ran out of gas or had a mechanical failure. After securing the area, deputies recovered over 25 grams of crystal meth from McGill.
McGill pled guilty to possession and distribution of methamphetamine, for which the Court sentenced him to imprisonment for a term of 115 months. For having violated his term of supervised release on the firearm conviction the Court sentenced him to serve an additional 24 months in prison.
“We continue to work with our local, state, and federal law enforcement partners to take deadly drugs off the streets of our community,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “McGill’s lack of concern for others is apparent. His attempted escape from law enforcement put citizens and officers at risk. His peddling of toxic drugs puts our whole community in danger.”
“Illicit synthetic drugs like fentanyl and methamphetamine are killing Americans at alarming rates,” said Towanda Thorne-James, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division. “Mr. McGill contributed to that, so he must now pay the price. The men and women of the DEA remain committed to disrupting the operations of all other drug dealers in our community.”
DEA’s Alpine Resident Office and the Winkler County Sheriff’s Department investigated the case.
Assistant U.S. Attorney Amy Greenbaum prosecuted the case.
###
Kaufman County man sentenced to 20 years in federal prison for defrauding investors of at least $2.7 million in the Eastern District of TexasRead the Press Release
SHERMAN, Texas– A Terrell man was sentenced to federal prison for defrauding investors in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Michael Disman, 41, pleaded guilty to wire fraud charges and was sentenced to 20 years in federal prison by U.S. District Judge Amos Mazzant on Jan. 25, 2024. Disman was ordered to pay restitution of approximately $2.7 million to his victims.
According to information presented in court, between January 2018 and March 2022, Disman operated an investment fraud scheme using various companies he controlled, including “Dexter Development” and “Disman Energy.” Disman solicited funds from victim investors for purported lucrative land development projects, when in reality, those projects were non-existent and the investor funds were spent elsewhere. To execute his scheme, Disman made various material misrepresentations about investor payouts and the use of investor money, executing sham contracts and sharing real estate paperwork to add legitimacy. Disman actually used the investor funds for various non-business purposes, including ATM cash withdrawals and drug purchases. In total, Disman defrauded at least 17 victim investors and caused at least $2.7 million in losses.
This case was investigated by the FBI and prosecuted by assistant U.S. attorneys in the Plano office.
# # #
Kanawha County Man Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Timothy Brian Jackson, 44, of South Charleston, pleaded guilty today to possession with the intent to distribute fentanyl. Jackson admitted that he created and intended to distribute fake oxycodone pills that actually contained fentanyl or other opioids.
According to court documents and statements made in court, on August 9, 2022, law enforcement officers intercepted a package that Jackson placed in the United States Mail to send to Connecticut. Officers searched the package and found over 300 pills that appeared to be 30-milligram oxycodone pills. The Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory confirmed the pills contained protonitazene, an emergent synthetic opioid that is equally if not more potent than fentanyl.
On August 29, 2022, law enforcement officers executed a search warrant at a St. Albans apartment rented by Jackson. Officers found various quantities of pills that looked like legitimate 30-milligram oxycodone pills. The DEA Mid-Atlantic Laboratory confirmed that some of the seized pills contained fentanyl and others contained protonitazene or butonitazene, a federal Schedule I controlled substance with opioid effects. Officers also found various quantities of powders containing these substances, hydraulic pill press equipment, various punch and die kits used to imprint pills with “M30” markings, a pharmacy-grade powder mixing machine, various binding powders, two loaded pistols and a large quantity of cash.
Investigators seized over 10,000 pills in this case. Jackson admitted that he used the apartment, and primarily its basement, as a workshop to make counterfeit pills that he intended to distribute. Jackson further admitted that he acquired fentanyl powder from a source outside the United States, the “M30” punch and die sets from China and commercially manufactured binding powder from a company in the U.S.
Jackson began renting the St. Albans apartment several years prior to the August 29, 2022 search by law enforcement. Jackson admitted that he had been living with his family at a residence in South Charleston since February 2022 while continuing to rent the St. Albans apartment.
Jackson is scheduled to be sentenced on April 25, 2024, and faces a mandatory minimum of 10 years and up to life in prison, at least five years of supervised release, and a $10 million fine.
“This is the exact sort of criminal conduct that has resulted in untold harm and grief throughout West Virginia and our nation,” said United States Attorney Will Thompson. “There must be no tolerance for the creation and distribution of these counterfeit pills that have caused so many overdoses and deaths.”
Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the U.S. Postal Inspection Service, the U.S. Department of Homeland Security and U.S. Customs and Border Protection (CBP), and the valuable assistance provided by the West Virginia Fusion Center, the Kanawha County Sheriff’s Office, the Metropolitan Drug Enforcement Network Team (MDENT), the Charleston Police Department, the St. Albans Police Department, and the St. Albans Fire Department hazardous materials team.
“Through his selfish and reckless actions, Mr. Jackson endangered not only his immediate neighbors, but the Charleston community at large; and for that, he should expect to meet the full weight of the justice system,” said Special Agent in Charge J. Todd Scott, head of DEA’s Louisville Field Division. “The DEA and our law enforcement partners will not tolerate clandestine drug labs operating in our communities. If you’re in the business of making or selling fake pills, just know that we’re coming for you.”
“Today, Timothy Jackson admitted to manufacturing, possessing, and intending to distribute poison, which could have wreaked havoc on scores of American families,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. “Fentanyl is 50 times more potent than heroin and 100 times more potent than morphine. One kilogram of fentanyl can produce 1 million to 1.5 million pill dosage units and has the potential to kill 500,000 people. HSI Washington, D.C. is proud to have worked with our federal, state, and local law enforcement partners to prevent the distribution of this toxin to the residents of our communities.”
“As Postal Inspectors, our primary mission is the protection of our people and the postal employees who serve the public dutifully each day,” said USPIS Inspector in Charge Lesley C. Allison. “The USPIS is committed to taking these dangerous substances out of the mail stream and our priority is to safeguard the public and our employees. The charges against this individual proves the resolve of Postal Inspectors and our law enforcement partners to pursue these organizations with every resource at our disposal, and to ultimately see that justice is served.”
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-176.
###
KC Man Sentenced to 16 Years for Sex Trafficking Four VictimsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a sex trafficking conspiracy that involved four victims, including two teenagers.
Dameon Devor Williams, 30, was sentenced by U.S. District Judge Howard F. Sachs to 16 years in federal prison without parole. The court also sentenced Williams to 20 years of supervised release following incarceration.
On June 29, 2023, Williams pleaded guilty to one count of conspiracy to engage in sex trafficking and one count of sex trafficking. Williams admitted that he participated in a sex-trafficking conspiracy from Aug. 1, 2018, to Jan. 9, 2019, that caused four victims to engage in prostitution. One of the victims was 14 years old, and another victim was 16 years old.
On Jan. 7, 2019, Homeland Security Investigations agents in Kansas City, Mo., received a tip regarding a 14-year-old female (identified in court documents as V1) whose whereabouts were unknown. She had previously been apprehended in Blue Springs, Mo., after a traffic accident involving a stolen vehicle. She was taken to Children’s Mercy Hospital, where she reported that she had been forced to have sex for money. The hospital gave her personal belongings, including her cell phone, to federal agents. Agents used the phone to identify a residence in Jackson, Mississippi, where they encountered a second, 16-year-old, victim (identified in court documents as V2) a couple of days later. The second victim assisted agents in locating the first victim at a residence in Kansas City, Mo.
Agents set up surveillance at the Kansas City apartment building and soon saw V1 leave the residence and get into a vehicle with co-defendant Cory Lavell Smith, also known as “Fatz,” 29, of Kansas City, Mo., who was driving. When law enforcement officers identified themselves, Smith fled in the vehicle at a high rate of speed. Agents pursued the vehicle, which was ultimately brought to stop. Smith was arrested and V1 was taken into protective custody.
V1 identified Smith as her pimp. She told investigators that Smith groomed her into the commercial sex trade by befriending her, partying with her, buying her things, and educating her about the commercial sex trade. Smith provided her with drugs and deprived her of food to gain her compliance. V1 said she was paid $150 for a sex act, but Smith took all but $10 or $20 of that. Smith advertised V1 for commercial sex on various websites. She normally saw two or three men per day, and Smith drove her to local motels to conduct commercial sex acts. Smith kept V1 at the apartment in Kansas City and would lock the door to prevent her from leaving. She provided investigators with the names of two additional victims who had been trafficked by Smith.
V1 told investigators that Williams also set up commercial sex transactions for her. Smith and Williams split the money earned from the transactions. Williams photographed her for the purpose of advertising her for commercial sex.
According to the plea agreement, Smith and Williams worked together and there is evidence of their coordination in the commercial sex business. V1 told investigators there were times when Williams would call Smith about a commercial sex “deal” and Smith would either take V1 to the deal location or drop her off with Williams, who would then drive her to the deal. Sometimes, too, they would switch off with Williams taking her to Smith if Smith received a call from a customer.
Smith pleaded guilty to the same charges and was sentenced on Nov. 1, 2022, to 18 years in federal prison without parole. The court also sentenced Smith to 20 years of supervised release following incarceration.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by Homeland Security Investigations and the Lenexa, Kan., Police Department.
Jury finds former deportation officer guilty of federal crimes related to depriving immigrant victims’ civil rightsRead the Press Release
CINCINNATI -- A federal jury convicted a former ICE deportation officer today for crimes related to abusing his position to deprive the civil rights of victims under his supervision in the Alternatives to Detention (ATD) program.
Andrew Golobic, 52, of Cincinnati and Mason, Ohio, was found guilty on four counts including obstructing a sex trafficking investigation, deprivation of rights under color of law, witness tampering and destruction of records in a federal investigation.
The verdict was announced this evening following a trial that began on Jan. 8 before Senior U.S. District Judge Michael R. Barrett. The jury began deliberations on Jan. 19 and found Golobic guilty on four of seven counts.
Golobic was convicted of depriving a woman under his supervision in the U.S. Immigrations and Customs Enforcement (ICE) Alternatives to Detention (ATD) program of her fundamental right to bodily integrity, by forcing her to engage in nonconsensual sex. ATD allows certain asylum seekers and other immigrants who ICE has determined pose a low risk to public safety to remain in their communities while their immigration cases are pending. After being approached by agents from FBI and the Department of Homeland Security Office of the Inspector General in June 2020, Golobic deleted evidence from his cellphones.
Golobic was employed as a deportation officer with ICE from 2006 to 2020 and was assigned to the ICE office in Blue Ash, Ohio. He was assigned to the ATD program from approximately 2015 to 2020.
In his role, Golobic supervised immigrants with vulnerable backgrounds including those fleeing violence, exploitation, and sexual assault. Golobic knew he had power over women under his supervision. Golobic had discretion over the degree of freedom and movement afforded to participants under his supervision. He had the authority to decide the type of monitoring, frequency of reporting and level of supervision, as well as the authority to recommend that ATD participants who violated conditions of the program be detained or deported.
Golobic’s sentence will be determined by the Court based on federal sentencing guidelines and other factors at a future hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and John R. Pias, Special Agent in Charge, Department of Homeland Security Office of the Inspector General (DHS-OIG) announced the verdict. Assistant United States Attorneys Ebunoluwa A. Taiwo and Ashley N. Brucato are representing the United States in this case.
# # #
Jury Convicts Slync FounderRead the Press Release
The founder of Slync, a supply-chain management software startup, has been convicted of defrauding investors out of at least $25 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christopher Kirchner, 36, was charged via superseding indictment last month. He was previously charged via indictment with wire fraud and money laundering. After 4 days of trial, a jury convicted him today of four counts of wire fraud and seven counts of engaging in monetary transactions in property derived from specified unlawful activity.
According to evidence presented at trial, Mr. Kirchner – who served as Slync’s CEO from 2017 until 2022, when he was terminated by the Board of Directors due to allegations of misconduct – converted at least $25 million in investor money to his own personal use.
Records indicate that Slync raised roughly $7 million in its Series A investment round and roughly $50 million in its Series B investment round. All investor funds, which were supposed to be used for “product development and other general corporate purposes,” were wired into the company’s account at Silicon Valley Bank.
Mr. Kirchner misappropriated the investor funds in various ways: Between April 2020 and March 2022, Mr. Kirchner initiated nearly 100 wire transfers moving money from Slync’s Silicon Valley Bank account into the company’s account at JPMorgan Chase Bank – an account only he had access to. He then wired much of the money from the Chase account to his personal bank accounts. In addition, Mr. Kirchner wired $20 million directly from Slync’s Silicon Valley Bank account into his personal checking account. He used some of those funds to buy a $16 million private jet and to secure a luxury suite at the stadium of a Dallas-area professional sports team.
When Slync, drained of funds, struggled to make payroll in the spring of 2022, Mr. Kirchner attempted to replace some of the money he had misappropriated by convincing at least four investors to wire approximately $850,000 to Slync as part of a purported Series C investment round. Slync’s Board of Directors never authorized a Series C investment round.
In the meantime, Mr. Kirchner offered various explanations for Slync’s payroll issues – all of which were untrue.
Mr. Kirchner also fired a Slync employee after the employee reported to the Board of Directors that Mr. Kirchner may have falsely exaggerated Slync’s financial performance to investors.
Immediately following his suspension by the Board of Directors, in late July 2022, Mr. Kirchner removed certain IT administrator privileges from key Slync employees, preventing the employees from accessing Slync’s computer systems. He then attempted to delete approximately 18 gigabytes of Slync data, including emails.
Mr. Kirchner now faces up 20 years in federal prison per count of wire fraud and up to 10 years in prison per count of engaging in monetary transactions in property derived from specified unlawful activity .
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Joshua D. Detzky, Nashonme Johnson, and Jay Weimer prosecuted the case. Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.
Jury Convicts Man of Drug and Firearm Charges as Repeat OffenderRead the Press Release
Acting United States Attorney Susan Lehr announced that a federal jury on January 25, 2024, returned verdicts against Donnale Clay, 40, of Tacoma, Washington. The jury found Clay not guilty of possession with intent to distribute methamphetamine and guilty of felon in possession of a firearm. The jury also found Clay guilty of the lesser-included offense of possession of methamphetamine. The verdicts followed a two-day trial in front of United States District Judge Brian C. Buescher. Judge Buescher scheduled sentencing for April 24, 2024. Clay faces a maximum of 10 years in prison for the firearm conviction and a mandatory minimum sentence of 15 days up to two years for the drug charge.
The evidence at trial established that on April 27, 2022, interdiction officers with a DEA task force were conducting routine surveillance at the Omaha bus terminal when a bus from Denver arrived. Officers visually examined the luggage compartment and noticed a suspicious suitcase. Officers set the suitcase next to the bus to observe if anyone would pick it up. Clay came and retrieved the suitcase. During a consensual conversation, the officer noticed other suspicious factors about Clay’s travel. Clay told the officer he was travelling from Tacoma to St. Paul, Minnesota. After granting consent to search the suitcase, Clay ran away. He was taken into custody after a short pursuit.
A search of the suitcase uncovered three handguns, including a loaded .38-caliber Colt semi-automatic. A search of a backpack Clay had been wearing uncovered about 689 grams (1.51 pounds) of methamphetamine, about 60 grams (weight with packaging) of fentanyl pills, and an Airsoft pistol.
After the jury returned the guilty verdicts on the two charges, it found that Clay had a prior conviction for a drug offense, enhancing his minimum and maximum sentences for the possession charge.
This case was investigated by the Drug Enforcement Administration and the Nebraska State Patrol. The Douglas County Sheriff’s Office conducted forensic testing of the drugs. An agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives also testified.
Jury Convicts Man of Drug and Firearm Charges as Repeat OffenderRead the Press Release
Acting United States Attorney Susan Lehr announced that a federal jury on January 25, 2024, returned verdicts against Donnale Clay, 40, of Tacoma, Washington. The jury found Clay not guilty of possession with intent to distribute methamphetamine and guilty of felon in possession of a firearm. The jury also found Clay guilty of the lesser-included offense of possession of methamphetamine. The verdicts followed a two-day trial in front of United States District Judge Brian C. Buescher. Judge Buescher scheduled sentencing for April 24, 2024. Clay faces a maximum of 10 years in prison for the firearm conviction and a mandatory minimum sentence of 15 days up to two years for the drug charge.
The evidence at trial established that on April 27, 2022, interdiction officers with a DEA task force were conducting routine surveillance at the Omaha bus terminal when a bus from Denver arrived. Officers visually examined the luggage compartment and noticed a suspicious suitcase. Officers set the suitcase next to the bus to observe if anyone would pick it up. Clay came and retrieved the suitcase. During a consensual conversation, the officer noticed other suspicious factors about Clay’s travel. Clay told the officer he was travelling from Tacoma to St. Paul, Minnesota. After granting consent to search the suitcase, Clay ran away. He was taken into custody after a short pursuit.
A search of the suitcase uncovered three handguns, including a loaded .38-caliber Colt semi-automatic. A search of a backpack Clay had been wearing uncovered about 689 grams (1.51 pounds) of methamphetamine, about 60 grams (weight with packaging) of fentanyl pills, and an Airsoft pistol.
After the jury returned the guilty verdicts on the two charges, it found that Clay had a prior conviction for a drug offense, enhancing his minimum and maximum sentences for the possession charge.
This case was investigated by the Drug Enforcement Administration and the Nebraska State Patrol. The Douglas County Sheriff’s Office conducted forensic testing of the drugs. An agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives also testified.
Iowa Traffic Stop Leads to Seizure of Meth from Nebraska ManRead the Press Release
A Nebraska man who planned to distribute methamphetamine, pled guilty January 24, 2024, in federal court in Sioux City.
Calvin Wright, 33, from Creighton, Nebraska, was convicted of possession with intent to distribute methamphetamine. Wright was previously convicted of possession with intent to distribute methamphetamine in 2016 in Nebraska.
At the plea hearing, evidence showed that on July 5, 2023, in Sioux City, Iowa, law enforcement stopped a vehicle in which Wright was a passenger. Due to suspicious activity, a K-9 was deployed and indicated to the presence of a controlled substance in the vehicle. Once law enforcement began to search the vehicle, Wright admitted everything in the car was his. In a backpack which had been between Wright’s legs in the vehicle, law enforcement found approximately 95 grams of pure methamphetamine, scales, and drug paraphernalia.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Wright remains in custody of the United States Marshal pending sentencing. Wright faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 23-4052. Follow us on Twitter @USAO_NDIA.
Iowa City Man Sentenced to 180 Months in Federal Prison for Prohibited Possession of Ammunition ChargeRead the Press Release
DAVENPORT, Iowa – An Iowa City man was sentenced on January 22, 2024 to 180 months in federal prison for being a prohibited person in possession of ammunition. On June 28, 2023, Antonio Mashawn Airhart, 33, was found guilty following a three-day jury trial.
According to public court documents and evidence presented at trial, on July 2, 2022, Airhart was involved in a dispute that culminated in an exchange of gunfire with another subject. During this exchange, Airhart fired at least thirteen shots, and injured the victim. Airhart had been previously convicted of felony offenses and was prohibited from possessing any firearms or ammunition.
After completing his term of imprisonment, Airhart will be required to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa City Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Inmate at FCI Schuylkill Pleads Guilty to Possession of Contraband in PrisonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyrik Brown, age 29, an inmate at the Federal Correctional Institution, Schuylkill, in Minersville, Pennsylvania, pleaded guilty on January 24, 2024, before U.S. District Court Judge Robert D. Mariani, to the charge of possession of contraband in prison.
According to United States Attorney Gerard M. Karam, Brown, formerly of Washington D.C., admitted to possessing a dangerous prison-made weapon, commonly known as a “shank.” The charge stems from an incident in April 2023 in which staff at FCI Schuylkill found Brown in possession of the weapon.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
# # #
Husband and Wife Sentenced for $65 Million TRICARE FraudRead the Press Release
NEWS RELEASE SUMMARY – January 25, 2024
SAN DIEGO - Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, were sentenced in federal court today for orchestrating a health care fraud scheme that bilked TRICARE – the health care program that covers United States service members – out of more than $65 million.
Jimmy Collins received a 10-year prison sentence and was immediately taken into custody; Ashley Collins was sentenced to 18 months home confinement. The couple was ordered to pay $65,679,512.71 in restitution to Defense Health Agency and TRICARE.
The couple pleaded guilty in July 2023, admitting they worked with others to recruit sham TRICARE beneficiaries, mainly Marines from southern California who agreed to receive expensive, compounded medications in return for a kickback of approximately $300. Doctors and a nurse practitioner at Choice MD, a Tennessee medical clinic owned and operated by the Collinses, then wrote prescriptions for the sham TRICARE beneficiaries, despite never examining the patients.
Choice MD sent the prescriptions to The Medicine Shoppe, a small pharmacy in Bountiful, Utah, which filled the prescriptions and later received reimbursement from TRICARE. At the peak of the conspiracy, The Medicine Shoppe billed TRICARE over $10,000 (and at times upwards of $20,000) per fraudulent compounded prescription.
Between December 2014 and May 9, 2015 – the day TRICARE stopped reimbursing for compounded medications – the conspirators wrote thousands of fraudulent prescriptions amounting to $65,679,512 in fraudulent reimbursements.
The owners of The Medicine Shoppe then paid kickbacks to the Collinses based on a percentage of the TRICARE reimbursement. Between approximately February and July 2015, these kickback payments to the Collinses totaled at least $45.7 million dollars. The Collinses, in turn, kicked back a small percentage of that money (approximately 10 percent) to recruiters working as part of their network, including defendants Josh Morgan, Kyle Adams, and Daniel Castro.
Authorities seized numerous items and properties purchased by the Collinses and others with the proceeds of the fraud: an 82-foot yacht; multiple luxury vehicles, including two Aston Martins; a multimillion-dollar investment annuity; gold and silver bars; dozens of pieces of farm equipment and tractor-trailer trucks; and three pieces of Tennessee real estate.
The Collinses are the latest members of the conspiracy to be sentenced. The doctors who prescribed the compounded creams, and the corporate owner of the pharmacy that filled these prescriptions, were previously sentenced for their roles in the conspiracy to commit healthcare fraud. The patient recruiters and the nurse practitioner who facilitated the conspiracy await sentencing.
“Access to medical care is not a benefit for the service member, it’s a benefit to the rest of America to have a healthy and well cared for military force,” said U.S. Attorney Tara McGrath. “Today, defendants who defrauded millions of tax dollars intended for the care of our nation’s service members were held accountable for their crimes. Yachts and Aston Martins are a fantasy now, and prison is the reality.”
“Today’s sentencing demonstrates the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), and our law enforcement partners, to aggressively pursue illegal actions that pilfer taxpayer funds and degrade our military healthcare system,” said Acting Special Agent-in-Charge Gregory Shilling, DCIS Southwest Field Office. “DCIS will continue to diligently investigate these schemes in order to protect our service members and their families.”
“TRICARE fraud is not a victimless crime; it is theft of taxpayer dollars that would be directly used in support of the health and readiness of our warfighters,” said Special Agent-in-Charge Greg Gross of the NCIS Economic Crimes Field Office, “Today’s sentencing demonstrates NCIS’ and our law enforcement partners’ dedication to ensure the integrity of our government programs for the sake of the U.S. military and taxpaying public.”
DEFENDANTS Case Number: 18-CR-0432-JLS
Jimmy Collins Age: 59 Birchwood, TN
Ashley Collins Age: 37 Birchwood, TN
SUMMARY OF CHARGES
Jimmy Collins:
Receipt of Illegal Remuneration, in violation of 42 U.S.C. §1320(a)-7b(b)(1)(A)
Maximum penalty: Ten years in prison and $100,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE
Ashley Collins:
Conspiracy, in violation of 18 U.S.C. § 371
Maximum penalty: Five years in prison and $250,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
Great Falls woman sentenced for possessing stolen mail, wire fraudRead the Press Release
GREAT FALLS — A Great Falls woman who admitted to possessing stolen mail and wire fraud while working as a postal service contract driver was sentenced today to three years of probation and ordered to pay $5,641 restitution, U.S. Attorney Jesse Laslovich said.
Jacqueline Rose Hydock, 34, pleaded guilty in August 2023 to possession of stolen mail and wire fraud.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that while Hydock was a postal service contract driver responsible for transporting mail between the Black Eagle and Great Falls post offices, she stole checks and gift cards contained in some of the mail items. Hydock used stolen gift cards at Great Falls businesses and altered and deposited checks into her bank accounts in 2022. In letters to the court, one of the victims spent more than five hours and 100 miles of driving to rectify the damage caused after Hydock stole a check he had mailed. Another victim told the court that she is afraid to mail anything of value anymore, and that when her seven-year-old grandson opened his birthday card that no longer had its gift card inside, both were devastated.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case. The U.S. Postal Service Office of Inspector General, U.S. Postal Service, Cascade County Sheriff’s Office and Great Falls Police Department conducted the investigation.
XXX
Grant County man sentenced to 12 years for methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Christian Adam Fisher, age 38, of Petersburg, West Virginia, was sentenced today to 144 months in federal prison for 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, Fisher was selling large quantities of methamphetamine in Grant County. Investigators found methamphetamine and a firearm after a search of his home and his vehicle.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Potomac Highlands Drug Task Force, a HIDTA-funded initiative.
Chief U.S. District Judge Thomas S. Kleeh presided.
Gallia County man sentenced to 11 years in prison for dogfighting & drug distributionRead the Press Release
COLUMBUS, Ohio – A Gallia County man was sentenced to 11 years in prison today after pleading guilty to dogfighting and fentanyl distribution. He will serve nine months concurrent and 12 months consecutive to the 10 years he is already serving on the drug charges.
Michael Valentine, 40, of Bidwell, Ohio, had previously pleaded guilty to two counts of raising and training dogs for the purpose of fighting and five counts related to fentanyl distribution. He was sentenced on Jan. 26, 2023, to serve 10 years in prison for the drug distribution charge. He will also serve five years of supervised release.
“Valentine’s crimes endangered both humans and dogs,” said U.S. Attorney Kenneth L. Parker. “Thanks to the work of our investigative partners, hundreds of grams of fentanyl were taken out of circulation before reaching our local communities and more than 50 dogs were removed from the defendant. It is appropriate that Valentine will spend a significant amount of time in federal prison.”
“Dogfighting is a barbaric offense that cruelly harms animals and burdens the surrounding community in many ways,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s sentencing demonstrates that those engaged in this horrific practice face significant punishment.”
“The relevant provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity including drug trafficking and illegal possession of firearms,” said Acting Special Agent in Charge Robert J. Springer of USDA-OIG. “The USDA-OIG thanks the Department of Justice, who prosecuted the case, and Gallia County Sheriff’s Office and the FBI for their assistance with the investigation.”
According to court documents, law enforcement first investigated Valentine for dogfighting offenses in 2019 after a dog attacked a small child living with him. That investigation led to a search warrant of the Valentine’s residence and the seizure of 40 dogs. The search also recovered numerous items of dog fighting paraphernalia, including treadmills, veterinary supplies and dogfighting videos.
On March 8, 2022, a second search warrant was executed at the Valentine’s residence as part of a fentanyl-distribution investigation. That search revealed dog fighting paraphernalia, as well as two assault-style rifles. In addition, a search of a nearby parcel of land revealed 677 grams of fentanyl and 69 grams of cocaine packaged for distribution, and an additional 11 dogs, which Valentine was keeping for purposes of dogfighting. Valentine had previously sold 141 grams of fentanyl from the property.
The case was investigated by the U.S. Department of Agriculture, Office of the Inspector General (USDA-OIG) and the Federal Bureau of Investigation (FBI) with assistance from the Gallia County Sherriff’s Office.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) initiative. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. More information about OCDETF can be found at: https://www.justice.gov/OCDETF.
Assistant U.S. Attorney Nicole Pakiz, Special Assistant U.S. Attorney J. Michael Marous and Department of Justice Environmental and Natural Resources Division Senior Trial Attorney Adam Cullman are prosecuting the case.
# # #
Four Individuals Charged in $44.6 Million Scheme to Defraud Indiana Department of EducationRead the Press Release
INDIANAPOLIS- A federal grand jury has returned an indictment charging three individuals for their alleged roles in a conspiracy to defraud the Indiana Department of Education (IDOE) through their operation of two online charter schools, Indiana Virtual School (IVS) and Indiana Virtual Pathways Academy (IVPA):
Defendant
Charges
Tom Stoughton Sr., 74, of Carmel, Indiana
- 1 count, conspiracy to commit wire fraud
- 16 counts, wire fraud
- 57 counts, money laundering
Phillip Holden, 62, of Middletown, Indiana
- 1 count, conspiracy to commit wire fraud
- 16 counts, wire fraud
Percy Clark, 81, of Carmel, Indiana
- 1 count, conspiracy to commit wire fraud.
- 16 counts, wire fraud
- 11 counts, money laundering
In addition, Christopher King, 61, of Green Fork, Indiana, has entered a plea of guilty to conspiracy to commit wire fraud.According to the indictment, between the at least the summer of 2016 and 2018, the defendants allegedly submitted false numbers to IDOE representing the enrollment of over 4,500 students that they knew were not attending IVS or IVPA.
Like other public and charter schools, IVS and IVPA received funding from the State of Indiana based upon the number of students a school claimed to be enrolled and attending the school. In general, the more students enrolled, the more funding IVS and IVPA received from the State of Indiana. The indictment alleges the defendants manipulated this process to inflate enrollment numbers and ultimately receive more funding.
As a result of these false submissions, IDOE paid in excess of $44,000,000 to IVS/IVPA.
The defendants allegedly caused students to be enrolled or remain enrolled in IVS/IVPA who should not have been, by directing employees to stop verifying student interest before they were enrolled or reenrolled, and by making incomplete student applications available so that the student information could be used to enroll students for the 2017 and September 2018 Count Days. Most of these “students” never actually attended either school.
Shortly before the September 2018 Count Day, the defendants allegedly directed their information technology contractor to compile a list of students who were not listed in the Indiana Department of Education database as attending another school and who had previously been unenrolled from IVS or IVPA due to inactivity. Upon receiving a list of approximately 600 such students, the defendants directed employees to reenroll many of these students and be counted on the September 2018 Count Day.
After IVPA was created in 2017, the defendants allegedly transferred hundreds of students who had not been attending any classes from IVS to IVPA to continue to “count” and receive money for these students but also “protect” IVS from being held accountable by the IDOE for the students’ non-performance.
In the spring of 2017, Holden and Clark allegedly fired an employee who sent an email to IDOE attempting to inform the department of fraud that was occurring at IVS.
IVS and IVPA allegedly paid money received from the State of Indiana to fraudulent for-profit companies, many of which were controlled or operated by Stoughton. After the money was funneled through these for-profit companies, millions of dollars were paid out to Stoughton and members of his family, Clark, King, and others.
The Indiana State Board of Accounts performed an audit on IVS and IVPA in 2019. The SBOA referred the audit findings to the FBI, U.S. Department of Education Office of Inspector General, Indiana State Police, and Indiana Office of Inspector General, who investigated this case. A trial for the three defendants who have not pleaded guilty will be scheduled later. If convicted, each defendant faces between 10 and 20 years in federal prison per count.
U.S. Attorney Zachary A. Myers thanked Assistant U.S. Attorneys Bradley P. Shepard and Samantha Spiro, who are prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Four Indicted in Interstate Child Sex Trafficking ConspiracyRead the Press Release
COLUMBIA, S.C. — A federal grand jury in Columbia returned a 10-count indictment charging four Columbia-area defendants in a child sex trafficking conspiracy:
- Antonio Marquis Nicholson, 32, of West Columbia, was charged with human trafficking conspiracy, three counts sex trafficking of a minor, three counts coercion and enticement of a minor, interstate travel to promote illegal sexual activity, interstate transportation of a minor for illegal sexual activity, and one count of witness tampering.
- Monesha Tatayana Lapri Gary, 24, of Clinton, was charged with human trafficking conspiracy, three counts of sex trafficking of a minor, and three counts of coercion and enticement of a minor.
- Rebecca Melanie Perry, 30, of Columbia, South Carolina and Augusta, Georgia, was charged with human trafficking conspiracy, sex trafficking of a minor, coercion and enticement of a minor, and interstate travel to promote illegal sexual activity.
- Terrell Counts, 33, of Columbia, was charged with three counts coercion and enticement of a minor.
The indictment alleges the following:
Between December 2022 and July 2023, the conspiracy that included Nicholson, Gary, and Perry enticed, transported, harbored, and maintained in the commercial sex trade at least three minor victims. The conspirators recruited victims who were minors and runaways, then provided lingerie, obtained photographs, and advertised minor victims on the internet for commercial sex. Members of the conspiracy communicated with customers and arranged commercial sex for customers with the minors and then confiscated proceeds. The conspiracy exercised supervision, violence, and control, including force, fraud, and coercion, to obtain commercial sex. The indictment further alleges that Nicholson and Perry travelled across state lines, and that Nicholson transported a minor from North Carolina to South Carolina, for the purposes of illegal sexual activity.
Nicholson, Gary, and Perry face a mandatory 15 years in prison, Counts faces a mandatory 10 years, and each defendant faces up to life in prison. The defendants also face life terms of supervision by the federal court following any term of imprisonment, sex offender registration, and mandatory restitution payable to victims.
United States District Judge Sherri A. Lydon will preside over the case. Gary and Counts were ordered detained by United States Magistrate Judge Paige J. Gossett pending any trial or bond hearing. Nicholson and Perry will be arraigned on Jan. 30 at 10:00 a.m. at the Matthew J. Perry Courthouse.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by Homeland Security Investigations (HSI), the South Carolina Law Enforcement Division (SLED), and the South Carolina Attorney General’s Office, with assistance from the Columbia Police Department, Richland County Sheriff’s Department, West Columbia Police Department, Darlington County Sheriff’s Office, Spartanburg County Sheriff’s Office, Horry County Sheriff’s Office, Myrtle Beach Police Department, and Jefferson County (Alabama) Sheriff's Office. Assistant U.S. Attorneys Elliott B. Daniels and Ariyana N. Gore are prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
###
Fort Dodge Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine and distributed methamphetamine was sentenced on January 23, 2024, in federal court in Sioux City.
Phillip Pringle, 53, from Fort Dodge, Iowa, pled guilty on June 6, 2023, to conspiracy to distribute methamphetamine and distribution and aiding and abetting another in the distribution of methamphetamine.
At the plea and sentencing hearings, evidence showed that between January 2015 and December 2019, Pringle and others distributed more than six kilograms of methamphetamine in the Fort Dodge/Humboldt, Iowa, areas. In September and October 2019, Pringle was the source of methamphetamine for an individual selling methamphetamine to an undercover officer. On October 19, 2020, an arrest warrant was issued for Pringle’s failure to appear for a pre-trial release revocation hearing. Over two years later, on February 14, 2023, Pringle was arrested by the United States Marshals Service as a federal fugitive.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Pringle was sentenced to 180 months’ imprisonment and must serve a 5-year term of supervised release following imprisonment. There is no parole in the federal system. Pringle remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, and Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3022. Follow us on Twitter @USAO_NDIA.
Former federal agent sentenced to prison for witness tampering and obstructing justiceRead the Press Release
MIAMI – On Jan. 24, a former federal agent was sentenced to prison for his role in an operation that involved illegal oxycodone distribution, federal witness tampering, and obstruction of justice.
Alberico Ahias Crespo, 48, formerly a special agent with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), was convicted at trial of three substantive counts of witness tampering, conspiracy to commit witness tampering, and conspiracy to obstruct justice. U.S. District Judge Darrin P. Gayles sentenced Crespo to 97 months in prison, to be followed by three years of supervised release.
According to evidence introduced at trial, during the time of the criminal activity, Crespo worked as part of the South Florida Health Care Fraud Strike Force, made up of interagency teams of federal investigators and prosecutors focused on combating health care fraud and health care-related narcotics trafficking in South Florida. Crespo used his position as an agent to protect and advance a multi-year oxycodone trafficking scheme and impede related federal health care fraud investigations, including investigations in which Crespo himself was involved.
From November 2016 to July 2020, previously convicted patient recruiters Jorge Diaz Gutierrez, Yandre Trujillo Hernandez, and Anais Lorenzo, were part of the illegal oxycodone trafficking scheme involving patients, pharmacies, and medical clinics. The patient recruiters sent patients to selected medical clinics to obtain oxycodone prescriptions that the patients did not need. Once the patients obtained the prescriptions, they would give them to the patient recruiters in exchange for money. The patients would fill the prescriptions at pharmacies selected by the recruiters and sell the oxycodone pills (at a mark-up) to third party street dealers.
Diaz Gutierrez and Crespo were close friends and associates, including while Diaz Gutierrez was a criminal target of the Strike Force. Crespo used his position as an HHS-OIG special agent working on health care fraud cases to protect Diaz Gutierrez’s oxycodone operation. Crespo did this by monitoring Strike Force investigations involving Diaz Gutierrez, accessing information, disclosing sensitive law enforcement information to Diaz Gutierrez, updating Diaz Gutierrez on the progress of health care fraud investigations, and coaching Diaz Gutierrez on how to lie to investigators and tamper with evidence.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Deputy Inspector General for Investigations Christian J. Schrank of HHS-OIG made the announcement.
Lapointe commended the investigative efforts of FBI and HHS-OIG. Assistant U.S. Attorneys Sean T. McLaughlin and Christopher Clark prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20005.
###
Former Toledo City Council Member Sentenced for ExtortionRead the Press Release
TOLEDO - U.S. Attorney Becky Lutzko announced that Garrick “Gary” Johnson, a former Toledo City Council member, was sentenced today by U.S. District Judge Jeffrey J. Helmick to 4 months. A jury previously found Johnson guilty of Hobbs Act Extortion Under Color of Official Right.
According to court documents and testimony, an FBI source paid then-Councilman Johnson $2,000 in return for his vote on a special use permit to open an internet café on Secor Road in Toledo, Ohio. Although Johnson voted in favor of it, the special use permit ultimately failed to garner the required votes.
“Councilman Johnson chose to betray those he was elected to serve by accepting a bribe, blatantly violating his oath and the public’s trust, as a result, the entire Toledo community suffered,” said United States Attorney, Becky Lutzko. “This investigation and prosecution reflects the commitment of the U.S. Attorney's Office to aggressively prosecute individuals engaged in public corruption”. “Finding and investigating public corruption is one of the FBIs highest priorities,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “Elected officials are entrusted to make virtuous decisions to the betterment of all. Sadly, Gary Johnson chose a path of criminal conduct and greed over the wellbeing of those he served. We will continue to work on behalf of the American Public to ensure the conduct by elected officials is right and just.”
This case was investigated by the Cleveland Division of the FBI, Toledo Resident Agency. This case is being prosecuted by Assistant U.S. Attorney Gene Crawford.
Former Special Education School Employee Sentenced to Federal Prison for Attempting to Entice a MinorRead the Press Release
BENTON, Ill. – A district judge sentenced a former paraprofessional at Tri-County Special Education Center in Murphysboro to spend 10 years in federal prison for attempted sex crimes against a minor.
Jon P. Crawford, 45, of Pinckneyville, pleaded guilty to one count of attempted enticement of a minor and one count of solicitation of child pornography.
“Convicting school employees of sex crimes against minors furthers our mission to keep vulnerable children protected from harm,” said U.S. Attorney Rachelle Aud Crowe. “The U.S. Attorney’s Office will continue to work with our law enforcement partners to hold criminals accountable.”
According to court documents, an agent with Homeland Security Investigations conducted an undercover operation online and created an account for a purported 13-year-old child in April 2023. Law enforcement began speaking with Crawford online, and he asked for photos and videos of sexual acts from the purported 13-year-old child.
“Individuals who prey on children, especially those in positions of public trust, should expect to be held fully accountable for their actions,” said HSI Chicago Special Agent in Charge Sean Fitzgerald. “I commend the prosecutors and agents who worked to ensure that this offender is off our streets and away from children in our communities.”
HSI led the investigation, and Assistant U.S. Attorney Casey Bloodworth prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Former San Antonio Dentist Sentenced to 30 Years for Producing Child Sexual Abuse MaterialRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced yesterday in a federal court in San Antonio to 360 months in prison, lifetime supervised release, a $45,000 restitution to victims and ordered to pay a total of $55,100 in special assessments for his role in the production of child pornography.
According to court documents, Abiel Alejandro Saldivar, 33, who worked as a dentist in San Antonio, messaged numerous minors on various social media applications telling them he had nude images of them, and that he would post them if they did not engage in and record sexual activity for him. Saldivar was arrested on Jan. 21, 2022, and has remained in custody since. He pleaded guilty to the charge May 3, 2023.
“The defendant, a local pediatric dentist, was aggressively and ruthlessly sexually exploiting children via social media,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This case demonstrates the benefits of collaboration between local, state and federal law enforcement to serve victims and hold perpetrators, especially those who prey on the most vulnerable of our society, accountable.”
“The significant sentence imposed on Abiel Saldivar sends a clear message that there are serious consequences for those individuals who exploit children. Saldivar will serve the next 30 years in federal prison for his reprehensible acts” said HSI San Antonio Special Agent in Charge, Craig Larrabee. “We remain committed to working with our federal, state and local law enforcement partners to aggressively pursue those who victimize our children.”
HSI; Whatcom County, WA Sheriff’s Office; and the Texas Attorney General’s Office investigated the case.
Assistant U.S. Attorney Bettina Richardson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
###
Former President of MGM Grand Pleads Guilty to Violating the Bank Secrecy Act for Allowing Man Involved in Criminal Conduct to GambleRead the Press Release
LOS ANGELES – The former president of the MGM Grand casino has pleaded guilty to a federal criminal charge for failing to file reports of suspicious transactions his casino was required to make pursuant to the Bank Secrecy Act (BSA), the Justice Department announced today.
In related matters that resolve an investigation into alleged violations of money laundering laws and the BSA, MGM Grand and The Cosmopolitan of Las Vegas casinos have entered into settlements that require them to pay a combined $7.45 million, undergo external review, and enhance their anti-money laundering (AML) compliance program.
Scott Sibella, 61, of Las Vegas, pleaded guilty late Wednesday afternoon to one count of failure to file reports of suspicious transactions required to be made by casinos.
According to his plea agreement, Sibella was the president of the MGM Grand from at least August of 2017 until February of 2019, during which time he knew that a casino patron, Wayne Nix, ran and operated an illegal bookmaking business. Despite this knowledge, Sibella allowed Nix to gamble at MGM Grand and affiliated properties with illicit proceeds generated from the illegal gambling business without notifying the casino’s compliance department.
Not only did Sibella allow Nix to gamble at the casino, he also authorized Nix to receive complimentary benefits at the casino, including meals, room, board and golf trips with senior executives and other high net-worth customers of the casinos to further encourage Nix to patronize the casino and/or other affiliated properties.
Despite being trained and having knowledge of his duties, Sibella failed to report to MGM compliance personnel that Nix was an illegal sports bookmaker. Because of Sibella’s failure to report the suspicious activity by Nix, MGM Grand failed to file at least one suspicious activity report regarding Nix’s source of funds in relation to Nix’s cash payments to MGM Grand.
According to court documents unsealed today, Sibella admitted to law enforcement in 2022 that he believed Nix was involved in illegal sports bookmaking, but “didn’t want to know because of my position,… If we know, we can’t allow them to gamble…. I didn’t ask, I didn’t want to know I guess because he wasn’t doing anything to cheat the casino.”
Sibella pleaded guilty before United States District Judge Dolly M. Gee, who scheduled a May 8 sentencing hearing, at which time Sibella will face a maximum penalty of five years in prison and a fine of $250,000.
Nix pleaded guilty in April 2022 to one count of conspiracy to operate an illegal gambling business and one count of subscribing to a false tax return. He is scheduled to be sentenced on March 6.
“Financial institutions have a duty under the law to report criminal or suspicious activity occurring at the institution though SARs,” said First Assistant United States Attorney Joseph McNally. “Our office will aggressively prosecute corporate executives and employees who turn a blind eye to criminal actors depositing illegal funds at casinos and financial institutions.”
“Turning a blind eye to laundering of illicit funds and knowingly avoiding reporting requirements puts public safety at risk,” said HSI Los Angeles Assistant Special Agent in Charge Jennifer Reyes. “The El Camino Real Financial Crimes Task Force is uniquely prepared to investigate, disrupt, and prosecute the bad actors, holding them accountable for their actions.”
“Mr. Sibella’s willful violation of Bank Secrecy Act obligations to report suspicious activities put the credibility of the MGM Grand at risk,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The BSA mandates reporting of suspicious activities to protect financial institutions from becoming participants in money laundering activities often benefitting criminal or terrorist organizations. While president of MGM Grand, Mr. Sibella undermined the trust and confidence of his employees, customers and regulating agencies, and for that he will be held accountable. Additionally, the non-prosecution agreements with MGM Grand Hotel, LLC and The Cosmopolitan of Las Vegas should serve as notice to other casinos and financial institutions that evading BSA obligations can carry severe consequences, and we will investigate suspected non-compliance.”
The MGM Grand and The Cosmopolitan casinos have entered Non-Prosecution Agreements (NPAs) to resolve a related investigation into alleged money laundering and violations of the BSA. In their respective NPAs, MGM Grand and the Cosmopolitan each accepted responsibility for laundering Nix’s illicit funds and failing to properly file suspicious activity reports (SARs) on Nix, who conducted numerous transactions involving millions of dollars at the casinos between 2017 and 2020. MGM Grand also accepted responsibility for failures by the casinos’ compliance department to use all available information when performing “know your customer” (KYC) reviews of Nix.
Under the BSA, casinos like MGM Grand and The Cosmopolitan are required to implement and maintain programs designed to prevent criminals from using casinos to launder the large sums of cash that illegal activity can generate. For example, the BSA requires casinos to file reports documenting suspicious activity, such as instances where a client’s source of funds cannot be determined or are suspected to be related to crime.
As part of its NPA, MGM Grand admitted that Sibella and two casino hosts knew about Nix’s illegal gambling business, allowed Nix to continue to gamble with MGM Grand and affiliate properties, allowed Nix to present and use illicit proceeds at the casino properties, and provided Nix complementary benefits to encourage him to spend his illicit proceeds at the casino. MGM Grand also admitted that Nix at times used the golf trips with MGM Grand’s high-net-worth customers to solicit new customers for his illegal gambling business. By 2020, MGM Grand had accepted $4,079,830 in cash that were illicit proceeds from Nix’s illegal gambling business.
MGM Grand also admitted that its anti-money laundering compliance program failed to instruct the compliance team to use all available information, as required by the BSA, when performing KYC reviews to determine whether to file SARs, or to identify and verify customer information, including source of funds, for transactions found to be suspicious. Compliance personnel did not regularly reach out to the marketing hosts, even where the compliance team could not substantiate or identify the customer’s source of funds, despite the fact that other departments would routinely reach out to hosts in connection with, for example, the collection of funds owed to the casino. Because of the deficiencies in the AML compliance program, MGM Grand failed to detect and report the extent of Nix’s suspicious activities in SARs and failed to prevent Nix’s money laundering.
The Cosmopolitan admitted in its NPA that one of its hosts was aware that Nix ran an illegal gambling business, allowed Nix to present and use illicit proceeds at The Cosmopolitan without notifying the casino’s compliance department, and provided Nix complementary benefits to encourage Nix to spend his illicit proceeds at the casino. By 2020, The Cosmopolitan had accepted $928,600 in cash in illicit proceeds from Nix’s illegal gambling business.
While The Cosmopolitan’s AML compliance program was designed to use all available information, it did not do so with respect to Nix. The Cosmopolitan host failed to report to compliance personnel or law enforcement the source of the illicit proceeds that Nix used while gambling at the casino. Because of this failure, The Cosmopolitan failed to file one or more SARs regarding the source of Nix’s funds.
In their NPAs, both casinos agreed to enhance their joint compliance program and to implement additional review and reporting requirements to ensure future BSA compliance. This includes spending at least $750,000 over two years on an external compliance reviewer, who will provide reporting to the United States Attorney’s Office. They will also amend internal audit protocols and review certain prior SARs, related customer files and transactions.
The agreements also require MGM Grand and The Cosmopolitan to cooperate with law enforcement in any additional investigations or proceedings arising from the conduct described in the agreement’s statement of facts.
Federal prosecutors entered into the NPAs in recognition of the casinos’ remedial efforts to strengthen their AML programs, their acceptance of responsibility, their cooperation with authorities during the investigation, their agreement to pay fines, and their agreement to invest an additional $750,000 for an external compliance review and further reporting requirements designed to prevent future violations of federal law.
Under the NPAs, MGM Grand agreed to pay a monetary fine of $6,527,728, and to forfeit $500,000 in proceeds traceable to the violation, which will be counted towards the fine. The Cosmopolitan agreed to pay a monetary fine of $928,600, and to forfeit $500,000 in proceeds traceable to the violation, which also will be counted towards the fine.
Homeland Security Investigations (HSI) and IRS Criminal Investigation investigated this matter as part of HSI’s El Camino Real Financial Crimes Task Force. The Justice Department’s Money Laundering and Asset Recovery Section, Bank Integrity Unit provided assistance during the investigation.
Assistant United States Attorneys Jeff Mitchell of the Major Frauds Section; Rachel N. Agress of the International Money Laundering, Narcotics, Money Laundering, and Racketeering Section; and Dan G. Boyle of the Environmental Crimes and Consumer Protection Section are prosecuting Sibella and negotiated the settlement agreements with the two casinos.
Former Marlboro County Sheriff and Deputy Indicted for Use of Excessive ForceRead the Press Release
FLORENCE, S.C. — A federal grand jury in Florence returned a single-count indictment yesterday against Charles Bernard Lemon, age 59, and David Andrew Cook, age 29, both of Bennettsville, for using excessive force in violation of federal law.
The indictment alleges that on May 3, 2020, Lemon, acting as the Sheriff of Marlboro County, and Cook, a Deputy Sheriff, used unreasonable force against a pretrial detainee in the Marlboro County Detention Center. The indictment alleges that Lemon directed Cook to deploy a Taser against the victim without legal justification. Additionally, it alleges that the offense resulted in bodily injury to the victim.
Lemon and Cook face a maximum possible penalty of 10 years in prison if convicted of this offense. It is expected they will each make an initial appearance at the McMillian Federal Courthouse in Florence in early February.
The case was jointly investigated by the Federal Bureau of Investigation (FBI) and the South Carolina Law Enforcement Division (SLED). Assistant U.S. Attorneys Everett McMillian and Lauren Hummel are prosecuting the case in close coordination with the South Carolina Attorney General's Office.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
###
Former Law Firm Partner Sentenced to 10 Years in Prison for Laundering $400 Million of OneCoin Fraud ProceedsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARK SCOTT was sentenced to 10 years in prison by U.S. District Judge Edgardo Ramos for laundering approximately $400 million of proceeds from the massive international fraud scheme known as “OneCoin.” Today’s sentencing followed SCOTT’s conviction on all counts at trial on November 21, 2019.
U.S. Attorney Damian Williams said: “Mark Scott, previously convicted at trial of laundering over $400 million of OneCoin proceeds for ‘Crypto Queen,’ Ruja Ignatova, used his law license as a means to participate in a massive money laundering scheme for a cryptocurrency that had no value since its inception. Scott, an equity partner at a prominent international law firm, had boasted of earning ‘50 by 50.’ Indeed, Scott accomplished his goal, but by fraud and deception, and will now spend a decade in prison and has been ordered to forfeit all of his illegal proceeds.”
According to the Indictment, documents filed in the case, and evidence introduced at trial:
OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. OneCoin began operating in the U.S. in or around 2015. The OneCoin scheme was one of the largest fraud schemes ever perpetrated. Between the fourth quarter of 2014 and the fourth quarter of 2016 alone, the scheme took in more than $4 billion from at least 3.5 million victims.
OneCoin marketed its fake cryptocurrency through a global MLM network of OneCoin members. Unlike legitimate cryptocurrencies, OneCoin had no actual value and was conceived of as a fraud from day one. The misrepresentations made to OneCoin investors were legion, and the cryptocurrency was worthless. Among other things, OneCoin lied to its members about how its cryptocurrency was valued, claiming that the price of OneCoin was based on market supply and demand, when in fact OneCoin itself arbitrarily set the value of the coin without regard to market forces. The purported value of a OneCoin grew steadily from €0.50 to approximately €29.95 per coin, as of in or about January 2019. The purported price of OneCoins never decreased in value.
SCOTT, who was employed between June 2015 and September 2016 as an equity partner at Locke Lord LLP, a prominent international law firm, was first introduced to OneCoin’s co-founder, RUJA IGNATOVA, in September 2015. Beginning in early 2016, SCOTT formed a series of fake private equity investment funds in the British Virgin Islands known as the “Fenero Funds.” SCOTT then disguised incoming transfers of approximately $400 million into the Fenero Funds as investments from “wealthy European families,” when in fact the money represented proceeds of the OneCoin fraud scheme. SCOTT layered the money through various Fenero Fund bank accounts in the Cayman Islands and the Republic of Ireland. SCOTT subsequently transferred the funds back to IGNATOVA and other OneCoin associated entities, this time disguising the transfers as outbound investments from the Fenero Funds. As part of the scheme, SCOTT and his co-conspirators lied to banks and other financial institutions all over the world, including to banks in the U.S., to cause those institutions to make transfers of OneCoin proceeds and evade anti-money laundering procedures.
SCOTT, who boasted about earning “50 by 50,” was paid more than $50 million for his money laundering services. He used that money to purchase, among other things, a collection of luxury watches worth hundreds of thousands of dollars, a Ferrari and several Porsches, a 57-foot Sunseeker yacht, and three multimillion-dollar seaside homes in Cape Cod, Massachusetts.
* * *
In addition to the prison term, SCOTT, 55, of Coral Gables, Florida, was sentenced to three years of supervised release. SCOTT was also ordered to forfeit a money judgment in the amount of $392,940,000, several bank accounts, a yacht, two Porsche automobiles, and four real-estate properties.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Folly, Juliana Murray, and Kevin Mead are in charge of the prosecution.
Five More Fentanyl Trafficking Defendants Arrested in Washington Highlands-Focused OperationRead the Press Release
WASHINGTON – Five alleged fentanyl traffickers have been charged as additional members of two related narcotics conspiracies charged in U.S. District Court, the result of a yearlong multiagency investigation into narcotics distribution points in the Washington Highlands neighborhood of Southeast Washington, D.C. Three of the individuals are coconspirators newly charged in a superseding indictment alleging a conspiracy to distribute or possess with intent to distribute more than 400 grams of fentanyl, using, carrying, and possessing a firearm in furtherance of a drug trafficking offense, and money laundering, among other counts. Two other men are charged by complaint as additional coconspirators of four previously-indicted defendants in a related fentanyl trafficking conspiracy case. All five newly-arrested defendants are being held pending detention hearings.
The charges and arrests were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Derek W. Gordon, of Homeland Security Investigations Washington Field Office, Inspector in Charge Damon E. Wood, of the U.S. Postal Inspection Service Washington Division, Acting United States Marshal Ronald Carter of the United States Marshalls Service and Chief Pamela Smith, of the Metropolitan Police Department.
The alleged fentanyl operations were based in the Washington Highlands neighborhood in Southeast Washington, centering on Oxon Run Park and the 100 block of Yuma Street, respectively.
Kahlil Felder, 39, of Washington D.C., was indicted Dec. 14, 2023, on fentanyl distribution charges, using, carrying, and possessing a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm. Felder allegedly sold fentanyl in packaging branded with a female figure and the words “Heavy D.”
In executing a search warrant on Felder’s residence on December 13, 2023, agents discovered over five kilograms of fentanyl powder, various tools for distribution including cutting agents, nitrile gloves, masks, and thousands of single serve baggies, and 3,300 pre-packaged baggies or “zips” of fentanyl in various sizes, indicating that the defendant used his residence as a stash house. The search of Felder’s residence also uncovered two loaded semiautomatic pistols – a Glock 36, 45mm, and a Springfield Hellcat 9mm – one of which had been reported stolen in Maryland.
Today, three of Felder’s alleged lieutenants were arraigned on their charges in the superseding indictment against Felder. They include Cyrus Wheeler, 52, of Oxon Hill, Md; Carrol Edelen, 56, of Washington, D.C.; and Calvin Wright, 47, of Washington, D.C. The superseding indictment also adds 33 counts of money laundering and 19 counts of spending money laundering to the charges against Felder, reflecting a high volume of financial transactions that Felder allegedly made with illegal drug trafficking proceeds.
Two additional defendants, Leonard Darnell Short, 40, and James Martin, 58, all of Washington D.C., were also charged by complaint in a related fentanyl trafficking conspiracy. Each had initial appearances today in U.S. District Court. According to charging documents, law enforcement identified Short and Martin as additional members of the narcotics conspiracy previously charged in November 2023 when a grand jury returned a 10-count indictment against defendants Alphonso Lorenzo Murray, 50, Kevin Antaun Penn, 51, Marquette Alonzo Murray, 31, and Christian Raul Simms, 27, of Washington D.C. The coconspirators allegedly openly sold fentanyl on a cul-de-sac by the 100 block of Yuma Street, SE, within 1,000 feet from the Paramount Child Development Prep School.
“Fentanyl trafficking destroys lives and fuels violence, especially when it involves firearms and obscene profit,” said U.S. Attorney Matthew M. Graves. “The Metropolitan Police Department has identified the Washington Highlands neighborhood where this network allegedly operated as a neighborhood that will be a focus of its homicide reduction plan. We will continue to leverage our resources to take aim at those who are brazenly peddling deadly poison and engaging in crimes that attract violence.”
“Kahlil Felder and his alleged co conspirators are facing some very serious charges; They will get their day in court, but they stand accused of attempting to distribute a significant amount of poison throughout the Washington, D.C. area,” said Special Agent in Charge Derek W. Gordon, of HSI Washington, D.C. “Fentanyl is 50 times more potent than heroin and 100 times more potent than morphine. One kilogram of fentanyl can produce 1 million to 1.5 million pill dosage units and has the potential to kill 500,000 people. The fact that they were allegedly in unlawful possession of firearms amplifies the gravity of the alleged crimes. HSI Washington, D.C. will continue to work with our law enforcement partners to keep our residents safe from the tragic repercussions of fentanyl and illegal firearms.”
“The U.S. Postal Inspection Service remains steadfast in its collaboration with law enforcement partners, standing side by side to relentlessly pursue individuals infiltrating our communities with this deadly drug,” said Damon E. Wood, Inspector in Charge of the USPIS Washington Division. “We remain committed in eradicating these illicit substances from the U.S. mail and consequently safeguarding our community.”
“We are focused on removing violent offenders, illegal firearms, and deadly drugs from our District streets. MPD along with our local and federal partners are narrowing in on these offenders through our initiative, homicide reduction plan / Operation THRIVE,” said Chief Pamela A. Smith of the Metropolitan Police Department. “Collectively, we are leveraging our resources and focusing in on areas that are experiencing elevated levels of violent crime. These arrests today show how this focused operation has successfully removed Fentanyl, illegal guns, and violent offenders from the Washington Highlands neighborhood.”
These matters follow the charging and conviction of Ahmad Robertson, 33, of Washington, D.C., who was indicted in June 2023 and, in November 2023, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. According to the government’s pleadings, Robertson was an established fentanyl trafficker in the 100 block of Yuma Street, SE, in the Washington Highlands area. Robertson is scheduled for sentencing on his guilty plea on March 22.
The above efforts are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The charges of possession with intent to distribute over 400 grams or more of fentanyl and possession of firearm in furtherance of drug trafficking carry a statutory maximum of life in prison. The charges also carry potential financial penalties. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes.
This case is being investigated by the Homeland Security Investigations Washington Field Office, U.S. Postal Inspection Service Washington Division, the U.S. Marshals Service, and MPD’s Violent Crime Suppression Division.
It is being prosecuted by Assistant U.S. Attorneys Will Hart and Andrea Duvall and former Special Assistant U.S. Attorneys Javier Urbina and Jordan Leiter from the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Federal Judge Sentences San Antonio Cell Tower Arsonist to 78 Months in PrisonRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced yesterday in a federal court in San Antonio to six and a half years in prison for felon in possession of a firearm and arson affecting interstate and foreign commerce.
According to court documents, Sean Aaron Smith, 30, maliciously attempted to damage and destroy, by means of fire, multiple cellular telephone towers around San Antonio between April 2021 and May 2022.
Smith was arrested in a traffic stop on May 13, 2022. During the traffic stop, law enforcement officers located a handgun on the floorboard in front of the driver’s seat. Executing a search warrant for Smith’s apartment on May 15, 2022, investigators found additional firearms. Smith knowingly possessed the firearms after being previously convicted of two felony crimes where he served more than a year imprisonment on each. Smith pleaded guilty on Aug. 17, 2023 to six counts of arson of cellphone towers and two counts of felon in possession of a firearm.
“My office will not tolerate attacks on our critical infrastructure seeking to shut down our cellular telephone system and endangering our citizens who need to use our 911 emergency systems,” said U.S. Attorney Jaime Esparza for the Western District of Texas.
“An attack on the infrastructure of a community has the potential for devastating effects,” said Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division. “Sean Smith tried multiple times to burn cell phone towers down around San Antonio, in support of his anti-5G ideology. When he was caught, he had a handgun in his vehicle, despite his status as a convicted felon. We want to thank the San Antonio Fire Department Arson squad, FBI, San Antonio Police Department, Texas Department of Public Safety, and Texas Rangers for their continued assistance in keeping our communities safe.”
The San Antonio Fire Department Arson Squad, FBI, San Antonio Police Department, Texas Department of Public Safety, and Texas Rangers investigated the case.
Assistant U.S. Attorney Mark Roomberg prosecuted the case.
###
Ex-White House Trade Advisor Peter Navarro Sentenced to Four Months in Prison on Two Counts of Contempt of CongressRead the Press Release
WASHINGTON – Former White House advisor Peter K. Navarro, 74, was sentenced today to four months in prison for refusing to appear before the U.S. Congress to give testimony and produce documents as required by a subpoena he received from the United States House Select Committee to Investigate the January 6th Attack on the U.S. Capitol.
The announcement was made by U.S. Attorney Matthew M. Graves of the District of Columbia and FBI Assistant Director in Charge David Sundberg, of the FBI’s Washington Field Office.
Navarro, of Washington D.C., was found guilty by a jury on September 7, 2023, of one contempt count related to his refusal to appear for a deposition and another count related to his refusal to produce documents in response to the Congressional subpoena. The verdict followed a trial in the U.S. District Court for the District of Columbia.
In addition to the prison sentence, the Honorable Amit P. Mehta, who presided over the trial and sentencing, ordered Navarro to pay a fine of $9,500.
According to evidence presented at trial, the Select Committee issued a subpoena to Navarro on Feb. 9, 2022. The subpoena required him to appear and produce documents to the Select Committee on Feb. 23, 2022, and to appear for a deposition before the Select Committee on March 2, 2022. Navarro refused to either produce documents or appear for his deposition. The Select Committee issued the subpoena to Navarro because, inpart based on his own public statements, the Committee understood he had information relevant to its investigation into the attack on the U.S. Capitol.
Navarro, formerly an advisor to the former President on various trade and manufacturing policies, has been a private citizen since departing the White House in 2021. He was indicted on June 2, 2022.
The case is being investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and John Crabb Jr., supported by Paralegal Specialist Sonalika Chaturvedi, from the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
During Human Trafficking Prevention Month Law Enforcement Implores the Public to Protect Your Children from Sex Traffickers and Other PredatorsRead the Press Release
MIAMI – During National Human Trafficking Prevention Month, the U.S. Attorney’s Office for the Southern District of Florida and our law enforcement partners reaffirm our commitment to combatting forced labor, domestic servitude, and sex trafficking of adults and the most vulnerable members of society, our children. Our commitment does not end there. We continue to prosecute human traffickers and child predators, empower victims, and prevent the proliferation of these abhorrent crimes. But we need the public’s support to help us protect our children from exploitation.
“Attentive and engaged parents, teachers, family and friends are our first-line defense against human traffickers and child predators,” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “As your U.S. Attorney and a concerned parent, I implore you to do your best to monitor your children’s on-line presence, social media communications, and use of electronic devices. Given how easy it is to access the internet and social media, I recognize how challenging it can be to protect those we love. But, hopefully, by talking to our children, educating them about internet safety and stranger danger, and keeping an eye on our youth, we can ward off the perils of human trafficking, sextortion, and other deviant means of child exploitation.”
“Homeland Security Investigations (HSI) is deeply committed to combating human trafficking and child exploitation through the strategic use of its extensive authorities, global presence, and strong collaborations with government and non-government entities. Our mission is to tirelessly pursue the safe recovery of victims, apprehend perpetrators, and safeguard our most vulnerable against criminal exploitation,” said Anthony Salisbury, Special Agent in Charge of HSI Miami. “We urge parents to remain vigilant, engage in open conversations with their children, and educate them on the importance of personal safety. Together, we can create a shield of protection around our children and ensure their well-being.”
Anyone can become a victim. The Southern District of Florida strives to safeguard all children and vulnerable populations. To help protect your children from human traffickers and predators, law enforcement encourages the public to:
- Tell your children to avoid communicating with strangers online.
- Monitor your children’s chats, messages, and communications with people, particularly through gaming systems.
- Explain to your children that sometimes predators will offer them gifts in exchange for them taking and sending sexually explicit images or videos. Sometimes, the predators will make threats. Parents should explain to their children that these are strategies abusers use to get what they want, and if this happens, to not feel guilty and immediately tell a parent or other adult.
- To the extent possible, educate yourself about the internet tools your children use. For example, set up your child’s specific profile on cellphones, iPads, and computer devices to limit the websites and content your child can access, and have a weekly “usage” sheet sent to you for that profile. Make sure your children use privacy settings to restrict access to their online profiles.
- Check your children’s social media and gaming profiles and posts. Talk to your children about what is appropriate to say or share.
- Explain to your children that once images or comments post online, people can share them.
- Explain that everyone in the world can see what they publicly post on the internet, and they can never completely erase posted images and comments.
- Encourage children to choose appropriate screen names and create strong passwords. Parents should be aware of all passwords and discourage children from keeping their passwords a secret.
- Make it a rule with your children that they cannot arrange to meet up with someone they have met online without your knowledge and supervision.
- Know your children’s friends and whereabouts.
- Talk to your children about the dangers of talking to, meeting, and traveling with strangers.
We encourage anyone who suspects or has information regarding trafficking of minors, sextortion, child pornography or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)’s website at www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.
The U.S. Attorney’s Office alongside its law enforcement partners, to include FBI and HSI, have prosecuted many individuals in the Southern District of Florida who have used the internet to traffick and exploit children. Below are just a few examples:
- In April 2022, a man was sentenced to 15 years in prison for enticing and coercing young girls, as young as 13 years old, into producing and transmitting sexually explicit photographs and videos of themselves. The defendant contacted his victims on social media, offered them money for the photos and videos, and threatened to post sharing nude images and videos with their family and friends if they did not comply with his demands. For more information regarding this case visit https://www.justice.gov/usao-sdfl/pr/broward-man-sentenced-15-years-federal-prison-production-child-pornography.
- In November 2022, a man was sentenced to 25 years in prison for sex trafficking a minor and adult female. Evidence showed during trial that the defendant drove the victims from Atlanta to Miami to sell themselves for sex during Super Bowl LIV. The defendant also attempted to recruit other victims on social media. For more information regarding this case visit https://www.justice.gov/usao-sdfl/pr/atlanta-sex-trafficker-sentenced-25-years-prison-offenses-during-super-bowl-liv-miami-0.
- In December 2022, a man was sentenced to 30 years in prison for extorting four minor females into producing sexually explicit photos and videos of themselves and sending it to him over a social media application. The defendant threatened to post the sexually explicit material on social media and pornography websites if they did not continue to send more. For more information regarding this case visit https://www.justice.gov/usao-sdfl/pr/opa-locka-man-sentenced-30-years-prison-producing-child-sexual-abuse-material.
- In December 2022, a former Florida Atlantic University student was sentenced to 24 years in prison for producing child sexual abuse material of a 14-year-old girl. According to court records, the defendant used social media applications to entice nine minor females ranging in ages from 13 to 17 to create sexually explicit videos. For more information regarding this case visit https://www.justice.gov/usao-sdfl/pr/former-florida-atlantic-university-student-sentenced-prison-producing-child-sexual.
- In December 2023, a man was sentenced to over 19 years in prison, after previously pleading guilty to enticing a minor victim to engage in criminal sexual activity. Among other criminal conduct, the defendant sent sexually explicit communications to the minor victim through the Snapchat messaging service. For more information regarding this case visit https://www.justice.gov/usao-sdfl/pr/colorado-man-sentenced-more-19-years-prison-enticing-minor-engage-criminal-sexual.
- In November 2023, a man pled guilty to producing visual depictions involving sexual exploitation of minors. He is scheduled to be sentenced on Feb. 27. For more information regarding this case visit https://www.justice.gov/usao-sdfl/pr/lake-placid-man-pleads-guilty-producing-child-pornography.
“The protection of children is among our nation’s highest obligations. Within our district, the prosecution of those who sexually exploit, target, and engage in the trafficking of children continues to be the utmost priority,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Our Office, alongside our law enforcement partners, will continue to identify and bring to justice those individuals who carry out these heinous crimes against the most innocent among us - our children.”
To enhance awareness and educate the community about human trafficking, the U.S. Attorney’s Office for the Southern District of Florida released a Public Service Announcement (PSA) that can be found at https://youtu.be/XKHVMKkvn2E.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The hotline is not managed by law enforcement, immigration, or an investigative agency. Correspondence is confidential and you may request assistance or report a tip anonymously. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Many of our Office’s cases are brought as part of Project Safe Childhood (PSC), 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. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), PSC marshals federal, state, and local resources to locate better, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, we encourage the public to please visit www.projectsafechildhood.gov.
###
District Man Sentenced to 46 Months in Prison for Firearms Possession and Drug Trafficking OffensesRead the Press Release
WASHINGTON - Michael Stewart, 29, of Washington, D.C., was sentenced today to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year (felony) and one count of possession with intent to distribute N, N-Dimethylpentylone (felony), announced U.S. Attorney Matthew M. Graves, Chief Pamela Smith, of the Metropolitan Police Department (MPD), and Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Stewart was sentenced to 46 months of incarceration followed by three years of supervised release, by U.S. District Court Judge Tanya Chutkan. Stewart pled guilty to the offense on October 25, 2023. He has been detained since January 8, 2023.
According to the government’s evidence, on November 6, 2022 at approximately 4:30 p.m. officers responded to the Beacon Hotel located at 1615 Rhode Island Avenue, Northwest, Washington, D.C. After placing Stewart under arrest, officers searched his hotel room and found a privately manufactured firearm (also known as a ghost gun) that did not have a serial number, underneath the bed. The firearm had one 9-millimeter round in the chamber and an additional 24 rounds in an extended magazine capable of holding 31 rounds. DNA testing on this firearm tied Stewart to the firearm. Officers also recovered Stewart’s book bag, which contained a scale, $2,232 in small denomination bills, and 105.13 grams of N-Ethylpentylone. (N- Ethylpentylone is a Schedule 1 controlled substance and is a synthetic cathinone.) N-Ethylpentylone is often referred to as “boot” or “molly.” During a search of Stewart at the courthouse by the U.S. Marshals, law enforcement recovered a yellow package from his person that contained 66.52 grams of N, N- Dimethylpentylone. (N, N-Dimethylpentylone is an isomer of N-Ethylpentylone. It is also a synthetic cathinone. It is also often referred to as “boot” or “molly.”).
On December 7, 2022, officers were on routine patrol in the area of 5th Street and I Street, Northwest, Washington, D.C. Officers arrested Stewart for publicly consuming marijuana. Officers recovered the following items from Stewart: a sandwich-sized bag containing 70.15 grams of N, N-Dimethylpentylone, a black digital scale, $191 in U.S. currency, a folded dollar bill with a white powdery substance inside, approximately.5 grams of fentanyl (including two light blue round tablets with an M-30 imprint on it and a small zip lock baggie of a light blue powder substance), and another clear plastic bag that contained 87.99 grams of N, N- Dimethylpentylone.
On January 8, 2023, at approximately 2:35 a.m. officers observed Stewart in the area of 7th Street and T Street, Northwest. After officers approached him, Stewart ran diagonally through an intersection with oncoming traffic from at least one direction. Stewart was subsequently apprehended and officers recovered a black in color Ruger SR9C firearm from his person. The firearm was loaded with one round in the chamber and fifteen rounds in the magazine. The extended magazine in the firearm had a total capacity of 17 rounds. A records check revealed that the firearm was stolen from Atlanta, Georgia. Officers also recovered two folded $1 bills with white power inside, a scale, $435 in small denomination bills, and 61.8 grams of N, N-Dimethylpentylone.
In announcing today’s sentence, U.S. Attorney Graves, Special Agent in Charge Kailimai, and Chief Smith commended the work of those who investigated the case from Project Safe Neighborhoods from both the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including paralegal Specialist Karla Nunez.
The case was prosecuted by Assistant United States Attorney Shehzad Akhtar and former Special Assistant United States Attorney Lauren Renaud. Chief of Federal Major Crimes Melissa Jackson provided valuable assistance.
Des Moines Man Arrested on Federal Complaint in Possession of 30,000 Fentanyl PillsRead the Press Release
DES MOINES, Iowa – A Des Moines man was arrested on Sunday, January 21, 2024, and made his initial appearance before a United States Magistrate Judge in the United States District Court for the Southern District of Iowa on Wednesday, January 24, 2024.
Sharmarke Omar Mohamed, 35, is charged in a criminal complaint filed in the Southern District of Iowa with one felony drug offense: possession with intent to distribute a controlled substance.
According to the allegations in the unsealed complaint, as part of a Des Moines Police Department investigation, Mohamed was located traveling toward Des Moines from Arizona when the Iowa State Patrol conducted a traffic stop of his vehicle in Decatur County, Iowa. Pursuant to a federal search warrant for Mohamed’s vehicle, approximately 30,000 counterfeit pills suspected of containing fentanyl, weighing approximately 3,182 grams, were located in the luggage area of the vehicle.
This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Des Moines Police Department is investigating the case, with the assistance of the Iowa Department of Public Safety, the Iowa Division of Narcotics Enforcement, the Iowa State Patrol, the Federal Bureau of Investigation, the Ankeny Police Department, and the Mid-Iowa Narcotics Enforcement Task Force.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.