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17 January 2024
St. Louis Man Admits Three Carjackings, Including One That Was FatalRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri pleaded guilty Wednesday and admitted committing three carjackings in St. Louis in 2021, including one that resulted in the death of a 72-year-old man.
Carmain Milton, 50, pleaded guilty in U.S. District Court in St. Louis to two counts of carjacking and one count of carjacking resulting in death.
Milton admitted stealing a woman’s 1998 Toyota Camry on Sept. 21, 2021, in the 4500 block of Pershing Place. Milton had what appeared to be a gun and demanded that the victim start her car and give him her purse.
Early in the morning of Sept. 28, 2021, in a parking lot at the intersection of Chouteau Avenue and South Sarah Street, Milton approached two victims with what appeared to be a black semi-automatic handgun and said, “I will shoot you, don’t be a hero, give me your jewelry.” Milton stole debit/credit cards, rings, an iPhone and the keys to an Audi A6 belonging to one of the victims. He then stole the Audi.
Later that day, in the 300 block of North Boyle Avenue, Milton carjacked a man’s 2004 Honda Element and then ran the victim over with his own car. The victim died. Milton was arrested a few hours later with a pellet gun in his bag and a wallet belonging to one of the victims from the second carjacking.Portions of the carjackings were captured by surveillance cameras.
Milton is scheduled to be sentenced April 16. The carjacking charges are each punishable by up to 15 years in prison, a $250,000 fine, or both. The carjacking resulting in death charge carries a maximum penalty of life in prison or the death sentence. Both sides in the case have agreed to recommend a sentence between 18 and 27 years in prison.
The St. Louis Metropolitan Police Department and the FBI investigated the case. Assistant U.S. Attorney Cassandra Wiemken is prosecuting the case.
Spring Valley Man Sentenced to One Year and One Day in Prison for $1.6 Million COVID-19 Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ELIZIER SCHER was sentenced to one year and one day in prison by U.S. District Judge Philip M. Halpern for his scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $1.6 million in COVID-19 relief funds. SCHER previously pled guilty before Judge Halpern to one count of wire fraud on February 1, 2023.
U.S. Attorney Damian Williams said: “Elizier Scher schemed to steal taxpayer funds intended for small businesses in need of assistance during the pandemic. His intent to illegally profit from a national emergency that affected countless businesses and uprooted lives resulted in a sentencing reflecting the severity of his actions. Exploiting a crisis for personal gain will face the full force of the law.”
According to documents filed in this case and statements made in court proceedings:
The SBA is a federal agency that administers assistance to American small businesses, including the Economic Injury Disaster Loan (“EIDL”) program, which was intended to provide funding to help small business recover from the economic impacts of the COVID-19 pandemic. The maximum amount of an EIDL loan is determined by a formula based on the date the borrower began operating and the borrower’s gross revenue and cost of goods sold for the 12 months prior to January 31, 2020. The loans can only be used for working capital and other normal operating expenses.
Over an approximately four-hour period on or about July 13, 2020, SCHER submitted 12 applications for EIDL loans in a principal amount of $150,000 to the SBA online on behalf of 12 different corporations that he owned and controlled. SCHER made materially false statements in each application with respect to each applicant’s gross revenue and cost of goods sold for the 12-month period prior to January 31, 2020.
Between on or about July 20, 2020, and on or about August 11, 2020, 11 of the 12 applicants received a net total of $1,648,900 in loan proceeds from the SBA. SCHER used the proceeds to buy real estate and to pay credit card expenses instead of using it for working capital for the borrowers, as SCHER had agreed to do in the loan agreements he executed on behalf of the borrowers.
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In addition to the prison term, SCHER, 34, of Spring Valley, New York, was sentenced to two years of supervised release and ordered to pay $1,648,900 in forfeiture.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
South Georgia Resident Sentenced for Distributing Meth in Lanier CountyRead the Press Release
MACON, Ga. – A Clinch County, Georgia, resident found guilty of distributing nearly a kilogram of methamphetamine in Lanier County, Georgia, was sentenced to serve 15 years in prison today for his crime.
Dennis Thompson, 34, of Homerville, Georgia, was sentenced to serve 180 months in prison to be followed by five years of supervised release by U.S. District Judge Hugh Lawson today after he was convicted by a federal jury on July 18, 2023, of one count of possession with intent to distribute methamphetamine. Thompson is not eligible for parole.
“A lengthy investigation led by the Lanier County Sheriff’s Office landed a high-volume drug dealer behind bars and stopped a large amount of methamphetamine from hitting the streets,” said U.S. Attorney Peter D. Leary. “Our office appreciates the steadfast commitment from local, state and federal authorities to uphold the law and make our communities safer for everyone.”
“Thompson endangered himself, law enforcement and other motorists during his irresponsible attempt to evade justice for methamphetamine distribution,” said Rich Bilson, Supervisory Senior Resident Agent of FBI Atlanta’s Valdosta office. “Hopefully this case sends a clear message that drug dealing in our communities will not be tolerated by the FBI and our partners.”
“We are appreciative of the cooperative efforts from all our partners to help bring this case to a close,” said Lanier County Sheriff Charles “Nick” Norton. “It is this kind of cooperation that makes our streets a safer place.”
According to court documents and evidence presented at trial, Thompson was under surveillance for distributing methamphetamine by Lanier County Sheriff’s Office investigators in Aug. 2020. A confidential informant told investigators that Thompson would be carrying a large amount of illegal drugs into Lanier County on Aug. 30, 2020, and he would be driving on Highway 221. Deputies attempted to pull Thompson over on Highway 221, but Thompson fled, leading deputies on a high-speed chase in excess of 100 miles per hour for several miles. The pursuit continued into Atkinson County, Georgia, where the vehicle finally came to a stop. A drug dog alerted to the odor of drugs inside Thompson’s car. Officers found 976 grams of methamphetamine inside a bag in the car. Thompson acquired the methamphetamine in Atlanta to distribute in the Lanier County community.
The case was investigated by FBI and the Lanier County Sheriff’s Office. Assistant U.S. Attorney Sonja Profit prosecuted the case for the Government.
Six Members or Associates of Violent Street Gang Convicted of Federal Racketeering Offenses Including the Murder of Chicago RapperRead the Press Release
CHICAGO — A federal jury in Chicago today convicted six members or associates of a violent street gang on racketeering offenses that included the murder of Carlton Weekly, a Chicago rapper also known as “FBG Duck.”
The jury found that the defendants – all members or associates of the O-Block street gang – participated in a criminal organization that engaged in violence to protect the gang’s perceived territories on the South Side of Chicago. The O-Block gang publicly claimed responsibility for their violence and used social media and music to increase their criminal enterprise. The jury found that the defendants conspired to murder Weekly in order to maintain and increase their positions in the gang. Weekly was fatally shot on Aug. 4, 2020, while shopping in Chicago.
Convicted of committing murder in aid of racketeering are Chicago residents CHARLES LIGGINS, 32, KENNETH ROBERSON, 30, TACARLOS OFFERD, 32, CHRISTOPHER THOMAS, 24, MARCUS SMART, 25, and RALPH TURPIN, 34.
The jury returned its verdicts after a three-month trial in U.S. District Court in Chicago. The convictions carry mandatory sentences of life in federal prison. U.S. District Judge Martha M. Pacold set sentencings for Aug. 6, 2024, for Liggins; Aug. 8, 2024, for Roberson; Aug. 13, 2024, for Smart; Aug. 15, 2024, for Turpin; Sept. 4, 2024, for Offerd; and Sept. 17, 2024, for Thomas.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. Substantial assistance in the investigation was provided by the Cook County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorneys Jason Julien, Ann Marie Ursini, Caitlin Walgamuth, and Sean Hennessy.
“People have the right to go about their lives and walk the streets in safety – free from violence,” said Acting U.S. Attorney Pasqual. “The jury’s verdicts today hold the six defendants accountable for a brutal murder that took the life of Carlton Weekly. Working with our law enforcement partners, our office will continue to prioritize combatting the unacceptable level of gang violence in Chicago.”
“All too often, our residents are held hostage to violence and other dangerous activity on our city streets," said FBI SAC Wheeler. "These convictions show that there are very real consequences for murder in the city of Chicago today, tomorrow, and every day going forward.”
"The outcome of this case is a result of a shared commitment to public safety and longstanding partnerships at the federal, state, and local level," said CPD Supt. Snelling. "We will continue working side-by-side with our law enforcement partners to combat violence in every neighborhood because the safety of our communities and residents depends on it."
Seven-Time Convicted Felon Pleads Guilty to Illegally Possessing A Firearm and Ammunition, Distribution of A Controlled SubstanceRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces that Evan Ingram (42, Clearwater) has pleaded guilty to distribution and possession with the intent to distribute cocaine, and possession of a firearm by a convicted felon. For the distribution charge, Ingram faces up to 20 years in federal prison. For the possession of firearm charge, he faces a minimum mandatory of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
According to court documents, Ingram was previously convicted of seven felonies including possession of cocaine, sale or delivery of cocaine, robbery, aggravated assault, and sale of a counterfeit substance. On five dates in August and two dates in September 2022, Ingram distributed a mixture and substance containing a detectable amount of cocaine. Court records also show that on four of those dates Ingram sold either a firearm or a firearm and ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney Samantha Newman.
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.
Schenectady Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
ALBANY, NEW YORK – Terence Wilson, age 40, of Schenectady, New York, was sentenced today to 360 months (30 years) in federal prison for his repeated sexual exploitation of a child. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his prior guilty plea, Wilson admitted that he sexually exploited a child from the time the child was approximately 8 years old until the child was approximately 15 years old and that he created approximately 50 videos depicting the abuse.
Chief United States District Judge Brenda K. Sannes, also sentenced Wilson to serve a life term of supervised release to begin after Wilson is released from prison. Wilson also will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the New York State Police. Assistant United States Attorneys Michael D. Gadarian and Adrian LaRochelle prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Santa Clara Man Sentenced to 35 Years for Production of Child PornographyRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations - El Paso, announced today that Michael Rivera was sentenced to 35 years in prison. A federal jury convicted Rivera, 33, of Santa Clara, on July 11, 2023, of one count of coercion and enticement of a minor and two counts of production of a visual depiction of a minor engaging in sexually explicit conduct after less than two hours of deliberation.
A federal grand jury indicted Rivera on Sept. 21, 2022. According to the evidence at trial and other publicly available court records, in 2020, Rivera befriended a minor identified as Jane Doe. Doe and Rivera became close. One day in March of 2021, when Doe was 12 years old, Rivera stopped at a convenience store and bought alcohol for both. He then drove to a secluded area of town and parked the car. Rivera then initiated sexual intercourse with Doe in the car. Afterward, Rivera told Doe that she could not tell anyone because he could get in trouble.
Following the incident, Rivera maintained contact with Doe by phone. Later that same year, Rivera began requesting that Doe send him naked photos and videos of herself via text message. Rivera received several items of child sexual abuse material from Doe.
At sentencing, the court found that Rivera gained Jane Doe’s family’s trust so that he could be alone with the victim, groomed her in preparation of commissioning a sexual act or sexual contact and was able to later entice her to produce child pornography.
Upon his release from prison, Rivera will be subject to 30 years of supervised release and must register as a sex offender.
Homeland Security Investigations investigated this case with the assistance of the Grant County Sheriff’s Office, the Las Cruces Police Department, and the Federal Bureau of Investigation. Assistant United States Attorneys Marisa A. Ong, Eliot Neal and Matilda McCarthy Villalobos prosecuted the case.
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24-21
San Diego County Veterinary Clinic Pays $125,000 for Mishandling Controlled SubstancesRead the Press Release
NEWS RELEASE SUMMARY – January 17, 2024
SAN DIEGO – Best Veterinary Care, a veterinary clinic in Valley Center, has paid $125,000 to resolve alleged Controlled Substances Act violations for diversion of controlled substances and failure to properly keep records necessary to account for controlled substances.
The settlement arises from a U.S. Drug Enforcement Administration investigation into suspected illegal activity at Best Veterinary Care d/b/a Valley Center Veterinary Clinic. Based on an inventory audit conducted by the DEA and other investigative activity, the Government concluded that Best Veterinary Care committed multiple violations of the Controlled Substances Act from 2020 through 2022. The alleged violations include failing to control the clinic’s inventory of controlled substances, failing to maintain a complete record of controlled substances, and failing to maintain effective controls to guard against theft and diversion of controlled substances. Best Veterinary Care’s failure to control inventory included unaccounted-for pills, including benzodiazepines alprazolam (e.g., Xanax) and diazepam and tramadol, an opioid.
In addition to paying $125,000 to resolve the government’s claims, Best Veterinary Care entered into a Memorandum of Agreement with the DEA requiring Best Veterinary Care to undertake additional measures to handle controlled substances properly and safely.
“Veterinarians have a responsibility to keep opioids and other dangerous drugs out of the wrong hands,” said U.S. Attorney Tara McGrath. “Failure to do so is not only reckless but is illegal and contributes to the raging opioid epidemic in this country.”
“Veterinarians, like all registrants, must dispense controlled substances in a lawful manner and provide effective controls to prevent the diversion of controlled substances,” said DEA Special Agent in Charge Shelly Howe. “DEA will continue to ensure registrants are upholding these policies and procedures.”
This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Southern District of California and the Drug Enforcement Administration.
To report a tip directly to a DEA representative regarding medical personnel writing suspicious opioid prescriptions and pharmacies dispensing large amounts of opioids, call (571) 324-6499, or visit the DEA’s website (https://www.deadiversion.usdoj.gov/) and click on “Report Illicit Pharmaceutical Activities.”
This case was prosecuted by Assistant U.S. Attorney Dylan M. Aste.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Sallisaw Resident Pleads Guilty to Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Terry Joseph Dunnavent, age 38, of Sallisaw, Oklahoma, entered a guilty plea to one count of Felon in Possession of a Firearm.
The Indictment alleged that January 3, 2023, Dunnavent was found in possession of a 9mm semi-automatic pistol after having been previously convicted of a crime punishable by imprisonment exceeding one year.
The charge arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Judge Jason A. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Dunnavent will remain in the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Rochester man pleads guilty to submitting false claims to the IRS resulting in a refund of hundreds of thousands of dollarsRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Eugene Jamar Thomas, 45, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to submitting false claims to the Internal Revenue Service. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that on his 2015 tax return, Thomas reported that he earned $819,934 of interest income in 2015 and that he had $818,834 of that income withheld and paid to the IRS as tax. Thomas falsely claimed that he was entitled to a refund of $495,655. After receiving the fraudulent refund, Thomas deposited the $482,017 check into two separate bank accounts. In September and October 2016, Thomas withdrew approximately $226,000 from these accounts. Subsequently, the IRS discovered the fraudulent filing and return, and immediately levied the bank accounts, recovering approximately $256,250. In actually, Thomas did not earn any interest income in 2015, did not have any interest income withheld, and was not entitled to any refund.
In addition, on his 2016 tax return, Thomas again falsely claimed that he had earned $4,731,845 of interest income and had $4,683,641 of that income withheld and paid to the IRS. The IRS flagged the 2016 tax return and did not pay a $2,683,945 anticipated refund to Thomas.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for April 25, 2024, before Judge Wolford.
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Repeat Offender Admits Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Christopher Carvajal, 30, of North Bergen, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In April 2023, Carvajal’s iPhone was seized at Newark International Airport. A search revealed that Carvajal’s iPhone contained more than 900 video files and more than 400 image files depicting sexual abuse of minors, including infants or toddlers. Carvajal’s iPhone also contained communications in which Carvajal discussed his desire for sexual encounters with young children. Carvajal was previously convicted in the Superior Court of New Jersey, Bergen County, of a child pornography offense.
Possession of child pornography carries a mandatory minimum penalty of 10 years in prison for a defendant with a prior conviction of a child pornography offense, a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for XX.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Opioid Abuse Prevention and Enforcement Unit in Newark.
carvajal_information.pdfRecovery of 1299 Grams of Fentanyl, 227 Grams of Methamphetamine, and Firearms Leads to 15+ Year Sentence for Wade ManRead the Press Release
BANGOR, Maine: A Wade man was sentenced today in U.S. District Court in Bangor for possession of fentanyl and methamphetamine with intent to distribute, possession of a firearm by an unlawful user of controlled substances, and conspiracy to distribute and possess with the intent to distribute methamphetamine and fentanyl.
U.S. District Judge John A. Woodcock, Jr. sentenced Daniel White, 57, to 188 months in prison followed by five years of supervised release. White pleaded guilty on July 24, 2023.
According to court records, on November 30, 2022, U.S. Drug Enforcement Administration (DEA) and Maine Drug Enforcement Agency (MDEA) agents executed a search warrant at White’s home in Wade. Drug paraphernalia, three pistols and two rifles, and $12,586 in drug proceeds were found in the residence. Investigators recovered more than 1299 grams of fentanyl from White’s bedroom, near a loaded weapon. Just 2 milligrams of fentanyl is considered a potentially lethal dose. Investigators also recovered more than 227 grams of methamphetamine.
The investigation revealed that between January 1, 2021, and November 30, 2022, White conspired with others to distribute and possess with the intent to distribute 50 grams or more of methamphetamine, 500 grams or more of a mixture or substance containing methamphetamine, and 400 grams or more of fentanyl. During this time, White regularly obtained the drugs from his out-of-state source of supply and would distribute the drugs through a network of dealers in Aroostook County.
The DEA and MDEA investigated the case.
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Recidivist Drug Trafficker Sentenced to More Than 13 Years in Federal PrisonRead the Press Release
CONCORD – A former Belmont man was sentenced today in federal court for trafficking methamphetamine in New Hampshire, U.S. Attorney Jane E. Young announces.
David Sweeney, 47, was sentenced by U.S. District Court Judge Paul J. Barbadoro to 160 months in federal prison and 5 years of supervised release. On July 5, 2022, Sweeney pleaded guilty to one count of conspiracy to distribute 50 grams or more of methamphetamine.
“The U.S. Attorney’s Office working in conjunction with our federal and state law enforcement partners is committed to investigating and prosecuting recidivist drug traffickers, like the defendant, who pose an ongoing danger to our state by flooding our communities with thousands of doses of methamphetamine,” United States Attorney Jane E. Young said. “The significant sentence imposed today will protect our citizens from Sweeney’s unabated drug trafficking.”
“DEA stands committed to keeping highly addictive drugs like methamphetamine off the streets of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Sweeney accountable for his crimes but serves as a warning to those traffickers who are contributing to the drug crisis in America. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
“David Sweeney pushed massive amounts of methamphetamine onto New Hampshire’s streets, and today’s lengthy prison sentence officially puts him out of business,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “The FBI and our partners are committed to taking down and locking up prolific drug traffickers like Sweeney – people with no regard for the incredible damage they inflict on so many lives and communities.”
According to court documents and statements made in court, in January 2016, United States District Court Chief Judge Landya B. McCafferty sentenced Sweeney to 54 months imprisonment followed by 3 years of supervised release for possession with the intent to distribute heroin. Sweeney was released from federal custody in January 2018, and placed on three years of federal supervision in New Hampshire. On December 13, 2019, while under the term of his supervised release, Sweeney sold a quantity of methamphetamine to a Federal Bureau of Investigation (FBI) confidential informant. As the investigation continued, the United States Drug Enforcement Administration (DEA) and the FBI determined that Sweeney conspired with other individuals located in New Hampshire, the Caribbean and Mexico to import multiple kilograms of methamphetamine into New Hampshire for distribution.
This matter was investigated by the United States Drug Enforcement Administration and the Federal Bureau of Investigation with the assistance of the United States Postal Inspection Service and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer C. Davis.
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 athttps://www.justice.gov/OCDETF.
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Putnam County Man Pleads Guilty to Role in Huntington Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Denzil Roger Grant II, 50, of Hurricane, pleaded guilty today to possession with intent to distribute a quantity of methamphetamine. Grant admitted to his role in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Huntington area.
According to court documents and statements made in court, on September 27, 2023, Grant called co-defendant Derrell Cashawn Massey and asked to purchase fentanyl and methamphetamine. Grant admitted that after arranging the transaction, he traveled from Hurricane to Huntington where he met with Massey and bought methamphetamine.
Grant was returning to Hurricane from Huntington when law enforcement officers stopped his vehicle in Putnam County. Grant consented to a search of the vehicle, and a female passenger in his vehicle gave officers approximately 13.5 grams of methamphetamine. Grant admitted that he intended to distribute the seized methamphetamine and further admitted that the passenger had hidden the methamphetamine on her person at his request.
Grant is scheduled to be sentenced on May 6, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
Grant is among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia. The indictment against Massey and the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor are prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.
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Paso Robles Woman Charged with Drug-Related Crimes, Including Distributing Fentanyl that Resulted in Victim’s Death Last YearRead the Press Release
LOS ANGELES – A San Luis Obispo County woman was arraigned today on a federal grand jury indictment alleging, among other crimes, that she knowingly distributed fentanyl, the use of which resulted in a victim’s fatal overdose in May 2023.
Jessica Leigh Alalia, 30, a.k.a. “Jessica Mitchell,” of Paso Robles, was arrested on Tuesday and was arraigned this afternoon at United States District Court in downtown Los Angeles on an eight-count indictment.
Also arraigned today in federal court was her boyfriend, Damian Naudh Lagunas-Garcia, 37, of Paso Robles, who was arrested on Sunday.
Alalia and Lagunas-Garcia pleaded not guilty to all charges and a March 12 trial was scheduled in this case. Both defendants are in federal custody and each of them has a detention hearing scheduled for January 22.
Alalia is charged with one count of distribution of fentanyl resulting in death. Both defendants are charged with one count of conspiracy to distribute methamphetamine and fentanyl, one count of knowingly maintaining a drug-involved premises, two counts of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute fentanyl, and one count of possession of firearms in furtherance of drug trafficking crimes.
According to an indictment returned on January 11, Alalia knowingly and intentionally distributed fentanyl on May 6, 2023, the use of which resulted in the death of the victim, identified in court documents as “R.S.”
The indictment further alleges that from January 2023 to August 2023, Alalia and Lagunas-Garcia conspired with each other to distribute methamphetamine and fentanyl. The defendants allegedly used their Paso Robles house to store, pack, and facilitate the distribution of narcotics. They coordinated with each other by using coded language in text messages – using the letter “F” for fentanyl, for example – to discuss their trafficking and sales of fentanyl and methamphetamine to drug customers, according to the indictment.
Alalia and Lagunas-Garcia allegedly also used a storage unit in Templeton to store, pack and distribute the narcotics, and possessed multiple firearms inside their home to protect their drug proceeds and narcotics.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of all charges, Alalia and Lagunas-Garcia each would face a statutory maximum sentence of life in federal prison. Alalia also would face a mandatory minimum sentence of 20 years in federal prison for the count of distribution of fentanyl resulting in death. Lagunas-Garcia would face a mandatory minimum of 10 years in federal prison for the drug conspiracy and possession with intent to distribute methamphetamine counts.
The Drug Enforcement Administration’s Overdose Justice Task Force and the San Luis Obispo County Sheriff’s Office investigated this matter. The Overdose Justice Task Force is a project designed to investigate fatal fentanyl poisonings and identify the individuals who provided the fentanyl that directly caused the deaths. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents have established collaborative relationships with local law enforcement agencies across the seven counties that make up the Central District of California. Local authorities are almost always the first to respond to an overdose death, and DEA agents have provided training to dozens of local agencies to help them analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution.
Assistant United States Attorneys Daniel H. Weiner and Alexandra Michael, both of the General Crimes Section, are prosecuting this case.
Otsego County Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
SYRACUSE, NEW YORK – Charles Bodie, age 49, of Otsego County, New York, pled guilty yesterday to sexual exploitation of a child. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office, made the announcement.
Bodie admitted during his change of plea hearing yesterday that, from December 2021 through October 2022, he exchanged sexually explicit text messages with the victim, during which he persuaded and enticed her to produce and send him sexually explicit pictures of herself. Bodie admitted further to engaging in sexual intercourse with the same victim when the victim was approximately 13-15 years old.
The offense to which Bodie pled guilty carries a mandatory minimum sentence of 15 years, with a maximum of 30 years imprisonment. If Chief United States District Judge Brenda K. Sannes accepts the parties’ agreed-upon disposition at sentencing on May 15, 2024, Bodie will receive an imprisonment term of between 210 to 262 months. Bodie’s sentence must also include a post-imprisonment term of supervised release of between five years and life, a fine of up to $250,000, restitution to the victim, and he will be required to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the United States Sentencing Guidelines, and other factors.
This case was investigated by HSI, the Otsego County Sherriff’s Office, and the Delaware County Sherriff’s Office. Assistant United States Attorney Michael D. Gadarian is prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
One Correctional Officer and Two Sergeants Charged with Civil Rights Violation and Conspiracy to Obstruct Justice in Connection with Assault of Pretrial DetaineeRead the Press Release
NEWARK, N.J. – A Passaic County correctional officer and two sergeants were arrested today for allegedly violating a pretrial detainee’s civil rights and conspiracy to obstruct justice, U.S. Attorney Philip R. Sellinger announced.
Sergeants Jose Gonzalez, 45, and Donald Vinales, 38, and Officer Lorenzo Bowden, 39, are charged by complaint with one count of deprivation of rights under color of law and one count of conspiracy to obstruct justice. Bowden is also charged with one count of making false statements. Gonzalez, Vinales and Bowden are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the criminal complaint:
On Jan. 22, 2021, a pretrial detainee at the Passaic County Jail splashed a mixture containing urine onto a correctional officer. The following day Gonzalez, Vinales and Bowden transported the detainee through an area of the jail that does not have a video surveillance camera, which correctional officers and inmates at the jail have referred to as a “blind spot.” While in that “blind spot,” Gonzalez and Vinales assaulted the detainee, while he was handcuffed. They knocked him to the ground and struck him multiple times. Bowden did not intervene to stop the assault. One day after the assault, the detainee was taken to a local hospital, which documented injuries from the assault.
The defendants all were required to submit documentation regarding their use of force. None of them submitted any such reports.
In April 2022, after receiving federal grand jury subpoenas in connection with this investigation, Gonzalez, Vinales and Bowden, among others, met to discuss the federal investigation. During that meeting, the group agreed not to cooperate with the federal investigation and also agreed to say that nothing had happened to the detainee (referring to the assault). During an interview with federal investigators in October 2022, Bowden falsely stated that the detainee had not been assaulted and that there had not been any meeting or communication among those who participated in or witnessed the assault.
The count of deprivation of rights under color of law is punishable by a maximum of 10 years in prison. The count of count of conspiracy to obstruct justice is punishable by a maximum of 20 years in prison. The count of making false statements is punishable by a maximum of five years in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Passaic County Sheriff’s Office Division of Internal Affairs, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the Criminal Division and the Civil Rights Division’s Criminal Civil Rights Task Force in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
gonzalezetal.complaint.pdfOmaha Man Sentenced for Traveling to Have Sex with a Minor and Possession of Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Christopher Carreras, 38, of Omaha, Nebraska, was sentenced on January 17, 2024, in federal court in Omaha for traveling with the intent to engage in sexual activity with a minor and possession of child pornography. United States District Judge Brian C. Buescher sentenced Carreras to 168 months’ imprisonment for each count. The sentences will run concurrently. There is no parole in the federal system. After Carreras’s release from prison, he will begin a 5-year term of supervised release. District Judge Buescher ordered Carreras to pay $3,000 in restitution.
Carreras began online chatting with the minor victim who was based in Texas. On February 26, 2022, Carreras traveled from Nebraska to Texas to meet up with the minor victim. After meeting face-to-face in a shopping mall, Carreras handed the minor victim his hotel room key. The minor victim used the key to enter his hotel room where the two engaged in sexual activity. Carreras traveled to meet up with the minor victim on other occasions in 2022. The minor victim ultimately reported what happened. The FBI obtained and executed a search warrant for Carreras’s residence in Nebraska on October 6, 2022, where electronic devices were seized.
Law enforcement review of the devices revealed records of online chat messages between Carreras, the minor victim, and at least one other apparent minor female. Through the chats, the minor victim communicated that they were about to turn 16 years old. Additionally, the review of the devices located known child pornography video files and images.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Ohio man admits to his role in drug trafficking organization in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – Raymond Michael Hardmon, also known as “Dro,” 38, of Bellaire, Ohio, has admitted to his role in a drug trafficking conspiracy operating in the Northern Panhandle of West Virginia.
Hardmon pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine base, and cocaine. According to court documents, Hardmon was involved in the trafficking of controlled substances in the Wheeling area. Investigators connected Hardmon to more than 400 grams of cocaine.
The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
Assistant U.S. Attorney Carly Nogay is prosecuting the case on behalf of the government.
U.S. Magistrate Judge James P. Mazzone presided.
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Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Antione Terren Glanton, also known as “Twan” and “T,” 45, of Columbus, Ohio, pleaded guilty yesterday to distribution of methamphetamine and cocaine base, also known as “crack.”
According to court documents and statements made in court, on October 27, 2022, Glanton sold approximately 27.5 grams of methamphetamine and a quantity of crack to a confidential informant in the area of the 2500 block of Washington Boulevard in Huntington. Glanton admitted to the transaction and to arranging it with the confidential informant beforehand.
Glanton further admitted to selling approximately 2.7 grams of crack to the confidential informant in the area of the 200 block of Olive Street in Huntington on October 24, 2022, and to selling approximately 2.9 grams of crack and 1.3 grams of fentanyl to the confidential informant on the 2500 block of Washington Boulevard in Huntington on January 5, 2023.
On January 11, 2023, law enforcement officers executed a search warrant at Glanton’s Marcum Terrace residence in Huntington and found approximately 15 grams of crack, 32 grams of fentanyl, a quantity of heroin, digital scales, fentanyl test strips and $501. Officers also found a loaded Glock 19 9mm pistol and a loaded Smith & Wesson 9mm pistol in Glanton’s possession. Glanton admitted that he possessed the seized crack, fentanyl and heroin and intended to distribute the controlled substances.
Glanton is scheduled to be sentenced on May 20, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Courtney L. Finney and Lesley C. Shamblin are 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. 3:23-cr-113.
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Newark Man Admits Carjacking and Firearms OffensesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted carjacking in Montclair, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Andy Cook, 24, of Newark, pleaded guilty before Judge Julien X. Neals to an indictment charging him with one count of carjacking and one count of conspiracy to use a firearm during a crime of violence.
According to the documents filed in this case and statements made in court:
On Dec. 6, 2021, Cook’s accomplice approached the victim, who was inside her car that was parked on her driveway. The accomplice pointed a firearm at the victim and ordered the victim to leave her belongings and exit the car. Cook then entered the car and drove it away. After the victim called the police, law enforcement officers spotted the vehicle. Cook abandoned the vehicle in Newark and fled on foot before being apprehended.
The count of carjacking carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The count of conspiracy to use a firearm during a crime of violence carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 30, 2024.
U.S. Attorney Sellinger credited special agents of the FBI Newark Violent Crimes Task Force, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit.
cook.indictment.pdfNew Orleans Man Pleads Guilty to Heroin and Cocaine Distribution ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – DONALD MYLES, a/k/a “D-Ray,” age 46, a New Orleans resident, pleaded guilty on January 10, 2024, before U.S. District Judge Mary Ann Vial Lemmon to conspiracy to distribute 100 grams or more of heroin and a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, the Federal Bureau Investigation New Orleans Gang Task Force and the New Orleans Police Department investigated MYLES for his involvement in a drug distribution operation in September 2020. The investigation involved numerous controlled purchases of heroin and cocaine from MYLES. The investigation revealed that MYLES conspired with JOHN CRAWFORD, KEVIN JOHNSON, CHRISTOPHER JOHNSON, and others to distribute heroin and cocaine.
MYLES faces a mandatory minimum of five years, up to forty years imprisonment, a fine of up to $5,000,000, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
The U.S. Federal Bureau of Investigation New Orleans Gang Task Force, with the assistance of the New Orleans Police Department, the Jefferson Parish Sheriff’s Office, and the Gretna Major Crimes Task Force, led the investigation. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
New Mexico man suspected of stealing items from Montana Historical Society arraigned on chargesRead the Press Release
GREAT FALLS — A New Mexico man suspected of stealing items of significant historical value from the Montana Historical Society, including letters by the wife of renowned Western artist Charlie “C.M.” Russell, and then selling them on eBay appeared on Jan. 16 for arraignment on charges, U.S. Attorney Jesse Laslovich said today.
Brian Anthony D’Ambrosio, 49, Sante Fe, New Mexico, pleaded not guilty to an indictment charging him with theft of major artwork, interstate transportation of stolen property and wire fraud. If convicted of the most serious crime, D’Ambrosio faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. D’Ambrosio, who appeared by video, was released pending further proceedings.
The indictment alleges that from about April 2022 to September 2023, D’Ambrosio stole objects of cultural heritage that were more than 100 years old and worth more than $5,000 from the Montana Historical Society, a museum located in Helena. D’Ambrosio, while claiming to conduct research at the Montana Historical Society, stole items of significant historic value, including letters written by Nancy Russell, the wife of Western artist Charlie “C.M.” Russell. As alleged in the indictment, D’Ambrosio then sold and attempted to sell the items on eBay for a profit. D’Ambrosio fraudulently induced buyers to purchase the items by omitting that he had stolen them from the Montana Historical Society, making it appear as if he had authority to sell and transfer the items to others when he did not.
An indictment is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorneys Ryan G. Weldon and Jennifer S. Clark are prosecuting the case. The FBI and Helena Police Department conducted the investigation.
PACER case reference. 23-20.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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New Hampshire Man Indicted on Firearm ChargeRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont announced that Ryan Buckley, 35, originally from New Hampshire, was arraigned in the District of Vermont on January 16, 2024 after a federal grand jury sitting in Rutland, Vermont returned a one-count indictment charging Buckley with possessing a firearm after being convicted of a felony. Buckley had been ordered detained in state court as a result of state charges he is facing and assented to detention in this federal case.
According to court records, on June 27, 2023, police came upon Buckley passed out in his pickup truck at the community baseball field in Chester, Vermont. Buckley had a handgun in his lap. Police knocked on his window. Buckley woke up and then picked up the firearm. Buckley placed the firearm on his lap and put his truck into gear. Police convinced Buckley to open his window and disarmed him without further incident. Buckley admitted to the police that he had smoked methamphetamine recently, having a prior felony conviction, and to knowing that he could not possess firearms. Buckley consented to a search of his truck and police found a small bag of suspected methamphetamine which field-tested positive. Because Buckley felt his heart racing, he requested medical transport to the hospital and police issued him a citation, but he failed to appear for his court date.
Police subsequently arrested Buckley on July 29, 2023 in Lebanon, New Hampshire. Buckley told police that he had recently stolen a firearm from Cavendish, Vermont and given it to someone else in Mount Holly, Vermont. Buckley said he helped another person move numerous firearms into a storage unit Buckley rented in Killington, Vermont. Buckley said he had met this person while selling them fentanyl during the previous six months. Police obtained and executed a search warrant for that Killington, Vermont storage unit and recovered, among other items, 19 firearms and 3,240 rounds of ammunition. Buckley’s criminal history includes prior felony convictions for grossly negligent operation of a motor vehicle resulting in serious bodily injury, leaving the scene of a crash with serious bodily injury, unlawful trespass of an occupied residence and possession of heroin.
If convicted, Buckley could face a maximum statutory penalty of 15 years in prison and a $250,000 fine, although any actual sentence will be advised by the U.S. Sentencing Guidelines and the United States Code. The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Buckley remains presumed innocent unless and until he is convicted of a crime.
The case will be prosecuted by Assistant U.S. Attorneys Jon Ophardt and Colin Owyang. Buckley is represented by Michael Straub, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
New Castle Resident Sentenced to More Than Three Years in Prison for Trafficking of Fentanyl and CocaineRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, was sentenced to 37 months in federal prison for trafficking fentanyl and cocaine, United States Attorney Eric G. Olshan announced today.
Donald Snowden, 32, of New Castle, was sentenced by United States District Judge Arthur J. Schwab. Judge Schwab ordered Snowden to serve three years of supervised release following the prison sentence.
In August 2023, Snowden pleaded guilty to conspiring to distribute fentanyl and cocaine between May 2021 and October 2022 and to distributing fentanyl in August 2022. In pleading guilty, Snowden acknowledged responsibility for the distribution of 100 grams of cocaine and 16 grams of fentanyl. He was on probation for a prior felony conviction when he committed the crimes in this case.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Snowden.
Nevada Man Sentenced for Embezzlement SchemeRead the Press Release
Acting United States Attorney Susan Lehr announced that Johnny Bradford, age 52, of Las Vegas, Nevada, was sentenced on January 17, 2024, in federal court in Omaha, Nebraska, for wire fraud. United States District Court Judge Brian C. Buescher sentenced Bradford to time served. Bradford will immediately begin a 3-year term of supervised release as a condition of his release, Bradford will serve a 6-month term of house arrest. Bradford was also ordered to pay $112,257.80 in restitution.
Roadrunner Temperature Controlled is the refrigerated trucking division of Roadrunner Transportation Systems and it is located in Sarpy County, Nebraska. Roadrunner Temperature Controlled (“Roadrunner”) uses Electronic Funds Source (“EFS”), an electronic wire transfer service, for their driver cash advances.
Amy Shepherd was employed by Roadrunner from July 25, 2016, through June 21, 2019. During her employment at Roadrunner, Shepherd, was a Customer Service Manager, Driver Business Leader Manager, and, most recently, a Dispatch Lead Manager. Shepherd was a Dispatch Lead Manager from October 13, 2018, to June 21, 2019. Shepherd worked remotely from her home in Kansas. Johnny Bradford II was a driver employed by Roadrunner from February 28, 2017, until May 4, 2018.
From February 1, 2018, through June 21, 2019, Shepherd, used her position with Roadrunner as a Dispatch Lead Manager to fraudulently generate advances and enter EFS check codes into Roadrunner’s accounting system. Shepherd characterized the advances as relating to legitimate business purposes, for example repairs, washouts, or trailer unloading. Shepherd entered the advances for current Roadrunner drivers. After generating the check code, Shepherd sent the check code to Bradford. Bradford filled out the EFS checks with the check code he received from Shepherd. Bradford then cashed the checks at vendor establishments. After Bradford received the funds, he would use Western Union to send portions of the money he received from the fraudulent driver advances back to Shepherd. One such wire occurred on June 9, 2019, when a check in the amount of $826.64 was initiated by Shepherd, in Kansas purportedly being for “TRL16452 Alternator” through Roadrunner’s accounting system in Nebraska, to Bradford in Nevada. As a result of the scheme and artifice to defraud, from February 1, 2018, through June 21, 2019, Shepherd and Bradford caused an actual loss of $112,257.80.
On November 30, 2023, codefendant Shepherd was sentenced to 18 months imprisonment for her role in this crime.
This case was investigated by the United States Secret Service and the Sarpy County Sheriff’s Office.
Nevada CPA Sentenced to Three Years in Prison in False Tax Return SchemeRead the Press Release
LAS VEGAS – A Nevada man was sentenced Tuesday to three years in prison for willfully aiding and assisting the filing of false tax returns, in connection with a scheme to sell purported investment opportunities to clients that he falsely claimed would entitle them to IRS tax deductions.
According to court documents and statements made in court, Lance K. Bradford, of Henderson, was a certified public accountant and founder and manager of LL Bradford & Company (LLB). LLB performed accounting-related work, including tax preparation, audit and consulting services. Bradford also operated a real estate business that developed office buildings and other real property. In connection with Bradford’s real estate development activities, he operated and controlled a real estate investment partnership entity.
In 2011, Bradford began offering LLB’s high-net-worth clients an “investment opportunity” through which the clients would make a payment to his partnership entity and, in exchange, receive a large tax deduction of approximately five to seven times the amount of money the client “invested.” Bradford advised that the clients’ payments would entitle them to claim the large tax deduction based on losses derived from the partnership entity, even though he knew the tax laws did not permit the sale of such deductions in exchange for an investment of money, and the partnership did not incur the losses or depreciation in the amounts represented by Bradford. Bradford also did not report the purported investments as losses on the clients’ tax returns as promised. Instead, he caused the clients’ returns to report large false deductions for cost of goods sold, professional and consulting fees or nonpassive losses. In total, Bradford’s scheme caused a tax loss to the IRS of at least $8 million.
As one example from his investment scheme, in 2014, Bradford asked a client to make a $417,780 “investment” to his partnership entity in exchange for purported depreciation-based losses to be placed on his client’s 2013 corporate tax return (Form 1120S). But instead of reporting depreciation related to the investment, Bradford caused LLB to prepare and file a Form 1120S that falsely inflated the company’s cost of goods sold by $2,110,000, causing a tax loss to the IRS of approximately $860,627.
In addition to the term of imprisonment, U.S. District Court Judge Gloria M. Navarro ordered Bradford to serve one year of supervised release and pay $6,734,338 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS Criminal Investigation investigated the case, with assistance from the FBI.
Trial Attorney Patrick Burns of the Tax Division and Assistant U.S. Attorney Steven W. Myhre for the District of Nevada prosecuted the case.
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Middle District of Florida Task Force Continues to Combat COVID-19 FraudRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the results achieved by the Middle District of Florida’s efforts to combat fraud related to COVID-19. Those efforts have included complementary actions by the United States Attorney’s Office’s (USAO-MDFL) Criminal, Asset Recovery, Appellate, and Civil Divisions, along with federal, state, and local law enforcement agencies.
“The Middle District of Florida United States Attorney’s Office continues to pursue, investigate, prosecute, and recover money from those who were engaged in major or sophisticated fraud schemes designed to steal benefits intended for Americans coping with the myriad impacts of the pandemic,” said U.S. Attorney Roger Handberg.
On the criminal enforcement front, the USAO-MDFL and federal, state, and local law enforcement agencies combined resources in March 2020 to form the Middle District of Florida COVID-19 Fraud Task Force to identify, investigate, and prosecute fraud related to the ongoing COVID-19 pandemic. Since its inception, the Task Force has prosecuted 77 defendants for fraud schemes designed to exploit federal programs including the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loans (“EIDL”), Unemployment Insurance (“UI”), the Main Street Lending Program (“MSLP”), the Emergency Rental Assistance Program (“ERAP”), as well as government Healthcare programs such as Medicare (“HCF”). Collectively, these defendants sought to defraud the United States of over $85 million. Fifty-six of those defendants have already been found guilty, while prosecution remains pending against 21 defendants. (See chart for criminal case details.) In fiscal year 2023, the Task Force indicted 26 COVID-19 fraud related cases in which defendants sought to obtain more than $15 million from the various federal programs.
For example, in October 2023, U.S. District Judge Thomas P. Barber sentenced Denis Casseus to two years in federal prison for bank fraud and an illegal monetary transaction. As part of his sentence, the court also entered an order of forfeiture in the amount of $298,875, the proceeds of the bank fraud. According to court documents, Casseus submitted two fraudulent PPP applications, in which he falsely represented that the PPP funds would be used only for business-related purposes, as specified in the loan applications. Instead, Casseus used a portion of the fraudulent-obtained money for the purchase a residence in Cape Coral.
In a separate matter, United States District Judge Kathryn Mizelle sentenced Vitalii Chychasov to eight years in federal prison for conspiracy to commit access device fraud and trafficking in unauthorized access devices. Chychasov was an administrator of a series of websites that sold Social Security numbers. During the early stages of the COVID-19 pandemic, traffic to and purchases on the website increased dramatically due to individuals purchasing Social Security numbers and other personal information in order to commit COVID-19 fraud, primarily unemployment insurance fraud.
Further, the USAO-MDFL’s Asset Recovery Division and federal seizing agencies have completed the forfeiture of more than $20 million of EIDL, UI, and PPP funds that were fraudulently obtained, depriving the fraudsters of their ill-gotten gains and recovering the proceeds for the victims. More than $18 million in additional pandemic fraud proceeds have been seized and are pending civil or criminal forfeiture.
The U.S. Attorney General has established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Through the PPP, the federal government authorized over $600 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The EIDL program provides economic relief to small businesses that are currently experiencing a temporary loss of revenue. The MSLP provided support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. UI programs provided unemployment benefits to eligible workers who became unemployed through no fault of their own.
The criminal cases charged by the Middle District of Florida COVID-19 Fraud Task Force have been investigated by the Federal Bureau of Investigation, the U.S. Secret Service, Internal Revenue Service—Criminal Investigation, the Department of Labor—Office of Inspector General, the U.S. Postal Service, the Federal Housing Finance Agency, the Small Business Administration, the Small Business Administration—Office of Inspector General, the Federal Deposit Insurance Corporation—Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Special Inspector General for Pandemic Recovery, Federal Reserve Board—Office of Inspector General, Department of Health and Human Services—Office of Inspector General, the Metropolitan Bureau of Investigation, the Tampa Police Department, the Orlando Police Department, the Jacksonville Sheriff’s Office, the Manatee County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Sarasota County Sheriff’s Office, the Winter Park Police Department, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. The cases are being prosecuted by Assistant United States Attorneys throughout the Middle District of Florida.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (“NCDF”) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
United States Attorney’s Office for the Middle District of Florida
COVID Fraud Criminal Cases
Charged Cases
Defendant(s) (Age)
Charge(s)
Max. Imprisonment
Type of Fraud*
Intended Loss
Amount
Tampa Division
Alexander Alli
Wire fraud conspiracy
Maximum Prison Term: 20 Years
EIDL
$80k
Ellyn Pinkney
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$40k
Kieanna Garrett
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$40k
Nicole Bramble-King
Wire fraud
Maximum Prison Term: 20 Years
PPP
$40k
Mehdi Tazi
Conspiracy
Maximum Prison Term: 5 years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
UI
$1.5M
Modupe Ogundele
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
Devontaie Deravil
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$480k
Jordan Ross
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
EIDL/PPP
$1.3M
Demarius Wilson
Wire fraud
Maximum Prison Term: 20 Years
PPP
$18k
Tommy Louisville
Wire fraud
Maximum Prison Term: 20 Years
PPP
$33k
Dawn Ogundele
Theft of government funds
Maximum Prison Term: 10 years
False statement to obtain federal employees’ compensation
Maximum Prison Term: 5 years
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Tiffany Fields, Greg Pizzo, Candace Rich, Jennifer Peresie, and Michael Kenneth
Orlando Division
Evan Edwards
Joshua Edwards
Conspiracy to commit bank fraud
Maximum Prison Term: 30 years
Bank fraud
Maximum Prison Term: 30 years
Visa fraud
Maximum Prison Term: 10 years
False statements
Maximum Prison Term: 30 years
PPP
$8M
Emmet Bowens
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$740k
Latresia Wilson
False statements
Maximum Prison Term: 20 Years
HCF
$2.6M
These COVID Fraud cases from the Orlando Division are being handled by AUSAs Kara Wick, Amanda Daniels, and DOJ Trial Attorney Keith Clouser
Jacksonville Division
James Wigg
Wire Fraud
Maximum Prison Term: 20 years
PPP
$476k
This COVID Fraud case from the Jacksonville Division is being handled by AUSA Tysen Duva
Fort Myers Division
Venera Price
Mail fraud
Maximum Prison Term: 20 Years
ERAP
$82k
Timothy Jolloff
Wire fraud
Maximum Prison Term: 20 Years
Money laundering
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP/EIDL
$2.1M
Lisa Jolloff
Money laundering
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP/EIDL
Diop McKenzie
Bank fraud
Maximum Prison Term: 30 years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
EIDL/PPP
$237k
These COVID Fraud cases from the Fort Myers Division are being handled by AUSAs Yolande Viacava and Trent Reichling
Ocala Division
Henry Wade
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$500k
This COVID Fraud case from the Ocala Division is being handled by AUSA Hannah Nowalk
Adjudicated Cases
Tampa Division
Joseph Abdo
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$500k
Keaujay Hornsby
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Kareem Spann
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Marqus Willard Johnson
Bank fraud
Maximum Prison Term: 30 Years
Money laundering
Maximum Prison Term: 20 Years
PPP
$500k
Charles Cunningham
Bank fraud
Maximum Prison Term: 30 years
PPP
$800k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Diego Novaes, Tiffany Fields, Jennifer Peresie, and Greg Pizzo, and DOJ Trial Attorney John Scanlon
Orlando Division
Joseph Faubert
Bank fraud
Maximum Prison Term: 30 years
PPP
$778k
This COVID Fraud case from the Orlando Division is being handled by AUSAs Chauncey Bratt
Jacksonville Division
Christopher Daragjati
Wire fraud
Maximum Prison Term: 20 Years
Theft of government funds
Maximum Prison Term: 10 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
PPP
$150k
This COVID Fraud case from the Jacksonville Division is being handled by AUSAs Kevin Frein and Michael Coolican
Ocala Division
Passion Jackson
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20K
This COVID Fraud case from the Ocala Division is being handled by AUSA Hannah Nowalk
Fort Myers Division
Evan Graves
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$1.3M
This COVID Fraud case from the Fort Myers Division is being handled by AUSAs Yolande Viacava and Simon Eth
Sentenced Cases
Tampa Division
Alexander Leszczynski
Wire fraud, bank fraud, illegal monetary transactions
Sentence Imposed: 17 and ½ years in federal prison
PPP
$1.1M
Louis Thornton, III
Wire fraud
Sentence Imposed: 42 months in federal prison
EIDL/PPP
$815k
Kary Stevenson
Corey Quinn
Conspiracy to commit access device fraud and aggravated identity theft
Sentence Imposed: 5 years, 10 months in federal prison (Stevenson)
Sentence Imposed:7 years in federal prison (Quinn)
UI
$1M
Bridgitte Keim
Bank fraud
Sentence Imposed: 2 years in federal prison
PPP
$588k
Wayne Ganaway
Conspiracy to commit wire fraud
Sentence Imposed: 4 years in federal prison
EIDL
$300k
Eriaius Bentley
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: One year in federal prison
UI
$3M
Rolanda Wingfield
Access device fraud, aggravated identity theft
Sentenced Imposed: 3 years in federal prison
UI
$135k
Tywon Spann
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: 6 years and 9 months in federal prison
UI
$3M
Randy Jones
Wire fraud, aggravated identity theft
Sentence Imposed: 5 years and 1 month in federal prison
EIDL/UI
$250k
Julio Lugo
Conspiracy to commit money laundering
Sentence Imposed: 7 years and 6 months in federal prison
EIDL/PPP
$4.4M
Keith Nicoletta
Conspiracy to commit money laundering
Sentence Imposed: 24 months in federal prison
PPP
$1.9M
Rosenide Venant
Conspiracy to commit money laundering
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$413k
Melinda Hernandez
Conspiracy to commit wire fraud,
wire fraud and aggravated identity theft
Sentence imposed: Three years and six months in federal prison
UI
$1.5M
Bri’antina Mills
Wire fraud and theft of government funds
Sentence imposed: 15 months in federal prison
EIDL
$10K
Jorge Gutierrez Echeverria
Wire fraud
Sentence imposed: Two years and six months in federal prison
EIDL
$150k
Omar Esquivel Bello
Wire fraud
Sentence imposed: 15 months in federal prison
EIDL
$242k
Steve Moodie
Conspiracy to commit wire fraud, wire fraud, aggravated identity theft
Sentence imposed: 5 years and 10 months in federal prison
UI
$1.5M
Richard Simpkins
Conspiracy to commit money laundering
Sentence imposed: 5 years and 10 months in federal prison
PPP
$1.9M
Devaris McClain
Conspiracy to commit wire fraud, access device fraud
Sentence imposed: 5 years and 1 month in federal prison
UI
$85K
Jalissa McDuffy
Wire fraud
Sentence imposed: 3 years supervised release with 6 months home detention
PPP
$41k
These COVID Fraud cases from the Tampa Division were handled by AUSAs Rachel Jones, Greg Pizzo, Tiffany Fields, Diego Novaes, Jennifer Peresie, and SAUSA Chris Poor
Orlando Division
Daniel Johnson
Conspiracy to commit wire fraud, aggravated identity theft, unlawful transfer of firearm
Sentence Imposed: 7 years, 6 months in federal prison
UI
$2.3M
Jacquavius Smith
Possession of short-barreled rifle; felon in possession of firearm; and aggravated identity theft
Sentence Imposed: 7 years, 1 month in federal prison
PPP
$10k
Johnson Eustache
Wire fraud
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$2.2M
Joseph Harrison
Conspiracy to commit wire fraud
Sentence Imposed: 12 months in federal prison
UI
$2.1M
Tomas Ziupsnys
Conspiracy to commit bank fraud; bank fraud; aggravated identity theft
Sentence Imposed: 5 years in federal prison
PPP
$2M
Holly Urban
Conspiracy to commit bank fraud
Sentence Imposed: 30 months in federal prison
PPP
$1.5M
Joel Greenberg
Conspiracy to commit wire fraud and other offenses while on pretrial release
Sentence Imposed: 11 years in federal prison
EIDL
$430k
Don Cisternino
Wire fraud, illegal monetary transactions, and aggravated identity theft
Sentence Imposed: 8 years and 6 months in federal prison
PPP
$7.2M
Keith Ingersoll
Conspiracy to commit wire fraud, wire fraud, aggravated identity theft
Sentence imposed: 9 years, 1 month in federal prison.
EIDL
$66k
Jaheim Davis
Access device fraud and aggravated identity theft
Sentence imposed: 3 years, 6 months in federal prison.
UI
$219k
Teresa McIntyre
Conspiracy to commit wire fraud and other offenses
Sentence Imposed: 5 years’ probation
EIDL
$730k
Brian Blake
Possession of device-making equipment, access device fraud, aggravated identity theft
Sentence Imposed: 9 years and 8 months in federal prison
PPP/UI
$832k
These COVID Fraud cases from the Orlando Division were handled by AUSAs John Gardella, Amanda Daniels, Chauncey Bratt, Emily Chang, Shannon Laurie, and Jennifer Harrington, and U.S. Attorney Roger Handberg
Jacksonville Division
Jacob Byrd
Wire fraud
Sentence Imposed: 5 years’ probation
PPP
$10k
Deconna Burke
Wire fraud
Sentence Imposed: 5 years’ probation
PPP
$20k
Desmond Williams
Wire fraud conspiracy, wire fraud
Sentenced Imposed: 5 years’ probation
PPP
$40k
Kenneth Landers
Wire fraud and illegal monetary transaction
Sentence Imposed: 1 year in federal prison followed by 1 year of supervised release
PPP
$1.4M
These COVID Fraud cases from the Jacksonville Division were handled by AUSAs Kevin Frein and Michael Coolican
Fort Myers Division
Casey Crowther
Bank fraud, false statement to a financial institution, illegal monetary transaction
Sentence Imposed: 3 years, 1 month in federal prison
PPP
$2.7M
Anthony Bruey
Amber Bruey
Conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, illegal monetary transactions
Sentence Imposed:
Anthony Bruey: 4 years, 3 months in federal prison
Amber Bruey: 4 years in federal prison
PPP/EIDL
$881k
Edrica Leann Watson
False statement to a lending institution
Sentence Imposed: 15 months in federal prison
PPP
$392k
Daniel Joseph Tisone
Wire fraud, bank fraud, money laundering, aggravated identity theft, possession of ammunition by a prohibited person
Sentence Imposed: 7 years in federal prison
PPP/EIDL/MSLP
$10.7M
Liliana Gonzalez
Wire fraud
Sentence Imposed: 5 years of probation with 18 months of home confinement
PPP
$169k
Al Clint LaRoche
Bank fraud
Sentence Imposed: Two years in federal prison
PPP
$1M
Denis Casseus
Bank fraud and illegal monetary transaction
Sentence Imposed: 2 years in federal prison followed by 3 years supervised release
PPP
$298k
Ismaelle Manuel
Bank fraud
Sentence Imposed: Credit for time served followed by 5 years supervised release
PPP
$280k
These COVID Fraud cases from the Fort Myers Division were handled by AUSAs Trent Reichling, Michael Leeman, Jesus Casas, and Yolande Viacava
Ocala Division
Lavelle Harris
Wire fraud
Sentence Imposed: Two years and three months in federal prison
PPP
$1.2M
This COVID Fraud case from the Ocala Division was handled by AUSA Hannah Nowalk
Types of Fraud*
Economic Injury Disaster Loan (EIDL)
Paycheck Protection Program (PPP)
Unemployment Insurance (UI)
Main Street Lending Program (MSLP)
Emergency Rental Assistance Program (ERAP)
Health Care Fraud (HCF)
Mexican man imprisoned for possessing almost 100 kilograms of cocaineRead the Press Release
McALLEN, Texas – A 44-year-old Mexican citizen has been ordered to prison for possession with intent to distribute 98 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Gabriel Alejandro Aguirre-Garcia pleaded guilty Aug. 18, 2023.
U.S. District Judge Micaela Alvarez has now ordered Aguirre-Garcia to serve 108 months in federal prison. Not a U.S. citizen, Aguirre-Garcia is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that Aguirre-Garcia had been working for the drug trafficking organization for at least six months and during that that time, he received cocaine two to three times per week and stored it in a dresser in his daughter’s bedroom prior to delivering it to other individuals. In handing down the sentence, the court noted that he put his family in jeopardy by storing the drugs in his home and how lucky his family was that they were never victims of a home invasion by a rip crew. Judge Alvarez told Aguirre-Garcia that she would have hoped that it crossed his mind how dangerous his involvement this crime was.
On Dec. 6, 2022, law enforcement conducted a traffic stop on a Ford F-150 truck and identified the driver as Aguirre-Garcia. He granted consent to search his vehicle, and a K-9 alerted authorities to a toolbox in the truck for the odor of narcotics. A search of the toolbox revealed 20 bundles of cocaine.
Law enforcement arrived on scene and Aguirre-Garcia also gave consent to search his house located in McAllen. That search led to the discovery of 66 bundles of cocaine in a dresser drawer. Aguirre-Garcia stated he was being paid to store and transport the narcotics.
The 86 bundles of cocaine seized weighed approximately 98 kilograms and have a street value of $1,176,000.
Aguirre-Garcia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the McAllen Police Department. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Methamphetamine Trafficker Is Sentenced to 11+ Years in PrisonRead the Press Release
ASHEVILLE, N.C. – James Leon Massey, 52, of Whittier, N.C., was sentenced to 139 months in prison today followed by five years of supervised release for possession with intent to distribute methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Sheriff Doug Farmer of the Jackson County Sheriff’s Office, and Chief Chris Hatton of the Sylva Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on April 1, 2022, at approximately 10:01 p.m., law enforcement conducted a traffic stop of a car driven by Massey for a motor vehicle violation. After stopping the vehicle, law enforcement determined that Massey was driving with a suspended license. Court documents show that over the course of the traffic stop law enforcement conducted a search of Massey’s vehicle. During the search, law enforcement located in the back area of the vehicle’s floorboard a plastic container that contained approximately a kilogram of methamphetamine.
On March 27, 2023, Massey pleaded guilty to possession with intent to distribute methamphetamine. Massey remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the DEA, the Jackson County Sheriff’s Office, and the Sylva Police Department for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.
Maryland Man Sentenced to 12 Months in Prison for Felony Bail Reform Act ViolationsRead the Press Release
WASHINGTON – Ranjith Keerikkattil, 35, formerly of Catonsville, Md., was sentenced by the Honorable Heidi Pasichow to 12 months of incarceration, three years of supervised release and ordered to stay away from the stalking victim and her family following his jury verdict for felony violations of the Bail Reform Act, U.S. Attorney Matthew M. Graves announced today.
Keerikkattil was found guilty of stalking a former co-worker on July 9, 2018, following a jury trial in the Superior Court of the District of Columbia. The Honorable Robert A. Salerno released Keerikkattil following the verdict, pending sentencing. The judge ordered him to appear the next morning to have a GPS monitoring device installed. However, he failed to appear, and fled the United States, instead, traveling through Iceland and ending up in Australia where he remained a fugitive for over four years. A grand jury subsequently indicted him on July 11, 2018, for a felony charge of violating the Bail Reform Act. The grand jury returned a superseding indictment on March 1, 2023, charging an additional violation of the Bail Reform Act for failing to return as ordered for his sentencing on September 14, 2018.
On November 13, 2023, Keerikkattil was found guilty by a second jury for his failures to appear as ordered in 2018, resulting in felony convictions for violating the Bail Reform Act on July 10, 2018 and September 14, 2018.
In announcing this sentencing result and convictions, U.S. Attorney Matthew M. Graves commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lynda Randolph and Stephanie Siegerist, Victim/Witness Advocate Jennifer Allen, and Victim/Witness Services Coordinator La June Thames.
Finally, he commended the work of Assistant U.S. Attorneys Ethan Carroll, Kristina Wolf, and John Parron who assisted in investigating and preparing the case, and Assistant U.S. Attorneys John G. Giovannelli and Rashmika Nedungadi who prosecuted and tried the case through the jury’s verdict and the sentencing today.
Marshalltown Man Sentenced to 21 Months in Prison for Disaster-Related Insurance FraudRead the Press Release
DES MOINES, Iowa – On January 11, 2024, a Marshalltown man was sentenced to 21 months in prison after pleading guilty to crimes of insurance fraud.
In 2018, following the EF-3 tornado that hit Marshalltown, Iowa, Timothy D. Sletten, 32, engaged in two separate schemes to defraud State Farm, the insurer of Sletten’s numerous residential rental properties, including presenting false work invoices for claim benefits. Again in 2020, following the derecho disaster in Marshalltown, Sletten presented false work invoices from contractors alleging he had paid the contractors for repairs to disaster-related damage to his rental homes when in fact he had not done so. As a result of these fraudulent schemes, State Farm paid Sletten loss claim benefits totaling just over $180,000. Following the 2020 derecho, State Farm opened an internal investigation that caused the company to deny payment of disaster-related claims made by Sletten.
Additionally, Sletten was fined $50,000 and ordered to pay full restitution. Following his prison term, Sletten will be required to serve three years of federal 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. The Iowa Insurance Fraud Bureau and the Marshalltown Police Department investigated the case. Assistant United States Attorney Laura M. Roan prosecuted the case.
Marathon County Man Sentenced to 7 Years for Possessing Fentanyl Intended for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jacob L. Gould 34, Weston, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 7 years in federal prison for possessing 40 grams or more of fentanyl with intent to distribute. Gould pleaded guilty to this charge on October 25, 2023.
Law enforcement began investigating Gould for drug trafficking after receiving information from several confidential informants. On January 6, 2023, after learning that Gould had visited the location of his drug supplier, officers attempted to stop and arrest him. Gould fled, leading law enforcement on a high-speed chase that reached speeds of 112 miles per hour. Law enforcement eventually stopped Gould’s car, but Gould fled on foot and threw a bag along the way. Officers ultimately arrested Gould and recovered the bag, which contained 102 grams of fentanyl. During a post-arrest interview, Gould admitted he had picked up the 100 grams of fentanyl to sell it. He also admitted picking up 70 grams of fentanyl days prior for the same purpose.
Officers searched Gould following his arrest and, in his pocket, found a key to a safe. Law enforcement then searched Gould’s home and located the safe. Inside, they found a Glock handgun, fentanyl, and methamphetamine.
At sentencing, Judge Conley described Gould’s fentanyl trafficking as a serious offense that endangered the community.
The charge against Gould was the result of an investigation conducted by FBI’s Central Wisconsin Narcotics Task Force, comprised of investigators from the FBI, Everest Metro Police Department, Marathon County Sheriff’s Office, Wisconsin State Patrol, Lincoln County Sheriff's Office, Wausau Police Department and Wisconsin National Guard Counter Drug Program, with the assistance of the Marathon County District Attorney’s Office. Assistant U.S. Attorneys Anita Marie Boor and Jennifer Remington prosecuted this case.
Man Sentenced to More Than Five Years in Prison for Illegally Handling Hazardous Waste in Hawaii and Possessing a Stolen Firearm in KansasRead the Press Release
Anthony Shane Gilstrap was sentenced today to 63 months in prison for violating the Resource Conservation and Recovery Act (RCRA) by illegally transporting hazardous waste in Hawaii, and to possessing a stolen firearm in Kansas. Gilstrap, who had pleaded guilty to the crimes in April, will also serve three years of supervised release during which time he will participate in treatment and programs for mental health, cognitive behavior and substance abuse.
Photo of barrels containing hazardous waste. Image is from the sentencing memo of United States v. Anthony Gilstrap, Case no. 6:21-cr-10079.According to documents filed in court, Gilstrap violated the RCRA in Hawaii by contracting to remove 35 drums of the hazardous waste perchloroethylene (perc) from a dry-cleaning operation in Honolulu in January 2017. Gilstrap offered, at a steep discount, to take away the illegally stored, spent solvent. He did not use required safeguards like an RCRA hazardous waste manifest, which traces waste to its ultimate disposal site. Gilstrap moved the drums to a warehouse he controlled where it sat for months without a required permit. He forged a manifest after government officials asked about the drums, falsely saying he had shipped the drums to Oregon.
The company that owned the dry-cleaning operation and its Hawaii regional manager have pleaded guilty and been sentenced. The drums of waste perc were ultimately disposed of properly. Law enforcement in Kansas later stopped Gilstrap for a traffic violation and found in his truck a handgun, which Gilstrap admitted was stolen. The cases of handgun and RCRA violations were consolidated for Gilstrap’s plea and sentencing.
“Laws like the Resource Conservation and Recovery Act help protect people and our environment from hazardous waste exposure by requiring safe transportation and storage practices,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “We are glad that this unusual case was ultimately resolved without prolonged and serious harm.”
“The illegal storage and transportation of hazardous waste poses very serious public health danger,” said Assistant Special Agent in Charge Benjamin Carr of the Environmental Protection Agency’s (EPA) criminal enforcement program in Hawaii. “Today’s sentencing demonstrates that EPA and our law enforcement partners are committed to protecting the American people from reckless criminal activity that jeopardizes human health and the environment.”
U.S. District Judge Eric F. Melgren for the District of Kansas issued the sentence.
EPA’s Criminal Investigation Division; the Sumner (Kansas) County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case
Senior Counsel Krishna Dighe of the Justice Department’s Environmental Crimes Section, Assistant U.S. Attorney Oladotun O. Odeyemi for the District of Kansas and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii prosecuted the case.
Madeira Beach Woman Arrested for Access Device FraudRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Heidi Richards (50, Madeira Beach) with one count of conspiracy to commit an offense against the United States, one count of trafficking in illicit labels, two counts of trafficking in unauthorized access devices, and one count of possession of 15 or more access devices. If convicted, Richards faces a maximum penalty of 5 years in federal prison for the conspiracy offense and for trafficking in illicit labels. She faces up to 10 years in federal prison for each access device offense. The indictment also notifies Richards that the United States is seeking an order of forfeiture for proceeds obtained from the offense.
According to the indictment, beginning at least as early as August 2017, Richards conspired with an unindicted coconspirator to obtain and traffic in illicit labels designed to be affixed to Microsoft software products. Richards sent wire transfers and payments totaling at least $5.14 million during that time to a company owned by the unindicted coconspirator to pay for and acquire software products. Richards also trafficked in Microsoft product activation keys that she or her company were not authorized to sell and obtained proceeds totaling $1,000 or more as a result in calendar years 2020 and 2022. Richards similarly possessed 15 or more unauthorized Microsoft product activation keys on March 8, 2023.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Risha Asokan and Trial Attorney Jared S. Hosid of the Criminal Division’s Computer Crime and Intellectual Property Section.
Download IndictmentLincoln Man Sentenced to 16 Months for Possession of AmmunitionRead the Press Release
Acting United States Attorney Susan Lehr announced that Tevin T. Randolph, 23, of Lincoln, Nebraska, was sentenced on January 17, 2024, in federal court in Lincoln for being a felon in possession of ammunition. Senior United States District Court Judge John M. Gerrard sentenced Randolph to 16 months’ imprisonment. There is no parole in the federal system. After Randolph’s release from prison, he will begin a 3-year term of supervised release.
On May 21, 2023, at about 3:00 am, police dispatch received 911 calls. The callers reported hearing people yelling, followed by gun shots, and then glass breaking. Police responded to the apartment complex where Randolph lived. The window to his apartment was broken and soil was observed scattered inside and outside the apartment. Randolph was observed yelling when police arrived. The dispute, according to Randolph, was between him and two women.
Police observed a live round of ammunition on the carpet just inside the doorway to Randolph’s apartment. Randolph denied knowing it was there. Randolph agreed to allow police to search his apartment. When police later went to retrieve the round of ammunition, it was gone. They asked Randolph where it went, and he said he did not know. A later review of an officer’s body camera recording would show Randolph picking it up off the ground and putting it into his pocket. During the search of Randolph’s apartment, a Glock magazine, loaded with six rounds of 9mm ammunition was found in a drawer near a stove in the kitchen. Officers also discovered four fired shell casings on the ground near a sidewalk beneath Randolph’s balcony. The officers learned Randolph had an active warrant for his arrest. He was searched incident to his arrest and the round of ammunition which the officers had seen earlier on the floor in Randolph’s apartment was found in his pocket. Randolph was prohibited from possessing ammunition due to prior felony convictions for assaulting an officer and for being a felon in possession of a firearm. Randolph pleaded guilty to his offense on October 19, 2023.
This case was investigated by the Lincoln Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Las Vegas Man Sentenced to 16 Years in Prison for Selling MethamphetamineRead the Press Release
LAS VEGAS – A Las Vegas resident who has prior felony convictions was sentenced Tuesday to 16 years in prison for conspiring to distribute methamphetamine.
According to court documents, between October 26, 2021 and December 30, 2021, Dean Romero (55) conspired with others to distribute methamphetamine. On October 26, 2021, Romero sold 143.5 grams of methamphetamine,7.9 grams of liquid fentanyl, and a .22 caliber handgun in a store parking lot. On December 1, 2021, in the same parking lot, he sold 357 grams of methamphetamine and a 9mm pistol with no serial number. On December 30, 2021, he sold 470.7 grams of methamphetamine and a privately made AR-15-style firearm equipped with an extended magazine and a silencer in a hotel casino parking lot.
Romero has been previously convicted of burglary, forgery, perjury, identity theft, possession or distribution of controlled substances, and firearms offenses. He pleaded guilty on July 6, 2023, to conspiracy to distribute a controlled substance. In addition to the term of imprisonment, United States District Judge Jennifer A. Dorsey sentenced Romero to five years of supervised release.
“This prosecution exemplifies our outstanding partnership with the FBI in removing dangerous individuals who sell drugs and firearms from our communities,” said United States Attorney Jason M. Frierson for the District of Nevada. “Fentanyl and methamphetamine are deadly drugs that have taken too many lives. The two firearms sold did not have serial number markings which made them untraceable and even more dangerous for law enforcement.”
“Our community is safer today,” said Special Agent in Charge Spencer L. Evans for the FBI. “There is no doubt lives across our state were saved from the devastating impact of these dangerous drugs and firearms crimes. We will continue to work with our law enforcement partners to investigate, disrupt, and hold accountable those who insist on sowing destruction in our neighborhoods.”
The case was investigated by the FBI. Assistant United States Attorneys Joshua Brister and Kimberly Sokolich prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Lake County Man Sentenced to 21 Months in Prison for Possessing A Firearm as A Convicted FelonRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Brian David Casey (35, Clermont) to 21 months in federal prison for possessing a firearm as a convicted felon. Casey had pleaded guilty on August 24, 2023.
According to the court records, Casey was previously convicted of three felonies, including burglary (2008) and two counts of battery on a law enforcement officer (2011). As a convicted felon, Casey is prohibited from possessing firearms and ammunition under federal law.
On March 20, 2023, Casey pointed a loaded shotgun at his neighbor, telling her that he was going to kill her. When Casey’s wife pushed the firearm’s barrel away, Casey fired the shotgun into the ground. Casey later admitted that he intended to discharge the firearm, calling it a “warning shot.” When federal agents subsequently arrested Casey for this offense, Casey was found to be in possession of another firearm—a loaded revolver.
This case was investigated by the Lake County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Justice Department Sues Nevada to Protect Pension Rights of Military ServicemembersRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the State of Nevada, Nevada Attorney General’s Office and Public Employees’ Retirement System of Nevada (NVPERS) to protect the employment pension rights of servicemembers who are called to serve their country on military service. The Justice Department alleges that when state employees are reemployed after military service, NVPERS violates the Uniformed Services Employment and Reemployment Act of 1994 (USERRA) by overcharging those servicemembers when calculating their contribution to their pension plans.
“When rehiring servicemembers, the law requires employers to not only return the veterans to their rightful positions, but also to protect their pension rights,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “The Justice Department is committed to ensuring that those who sacrifice so much to protect this country do not have to sacrifice their civilian employment rights, including their pensions.”
“USERRA protects a servicemember’s reemployment rights after returning from military service to their civilian employment,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Every person who has served in our country’s uniformed services deserves the full protection of our employment laws and we will continue to work with the Civil Rights Division’s Employment Litigation Section to protect servicemembers’ rights.”
According to the complaint, when Nevada state employees pass their five-year employment anniversary, they can purchase pension credits in the state’s pension system operated by NVPERS. NVPERS charges the employee for these pension credits based on the employee’s age and salary at the time of the purchase. USERRA requires employers to restore returning servicemembers’ pension benefits as if they had not been called away to military service. Servicemembers who are away on military service when they pass their five-year anniversary cannot purchase pension credits until they have returned from military duty. As alleged in the complaint, NVPERS violated USERRA by charging reemployed servicemembers based on their age and salary when they were reemployed, rather than their age and salary when they passed their five-year anniversary.
As explained in the complaint, Major Charles Lehman was an employee in Nevada’s Office of the Attorney General who was called to active duty with the Nevada National Guard on a multi-year term of duty during which he passed his five-year anniversary with the Attorney General’s Office. When he was released from military service and returned to his civilian job, NVPERS overcharged him for his pension credits based on his increased age and salary, an amount that exceeded the amount he would have owed, had he not been away on military service, by more than $38,000. As alleged, NVPERS’ policy of overcharging for these pension credits impacted other state employees returning from military service. The Justice Department seeks to have NVPERS change its policy of overcharging servicemembers, and refund Lehman and any other affected reemployed servicemembers the amounts previously overcharged.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations and provides that servicemembers shall not be discriminated against because of their military obligations. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/servicemembers and www.justice.gov/crt-military/employment-rights-userra as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case stems from a referral by the DOL after an investigation by the DOL’s Veterans’ Employment and Training Service.
Senior Trial Attorney Jeffrey Morrison of the Civil Rights Division’s Employment Litigation Section is handling the case.
Justice Department Sues Nevada to Protect Pension Rights of Military ServicemembersRead the Press Release
LAS VEGAS – The Justice Department announced today that it has filed a lawsuit against the State of Nevada, Nevada Attorney General’s Office and Public Employees’ Retirement System of Nevada (NVPERS) to protect the employment pension rights of servicemembers who are called to serve their country on military service. The Justice Department alleges that when state employees are reemployed after military service, NVPERS violates the Uniformed Services Employment and Reemployment Act of 1994 (USERRA) by overcharging those servicemembers when calculating their contribution to their pension plans.
“When rehiring servicemembers, the law requires employers to not only return the veterans to their rightful positions, but also to protect their pension rights,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “The Justice Department is committed to ensuring that those who sacrifice so much to protect this country do not have to sacrifice their civilian employment rights, including their pensions.”
“USERRA protects a servicemember’s reemployment rights after returning from military service to their civilian employment,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Every person who has served in our country’s uniformed services deserves the full protection of our employment laws and we will continue to work with the Civil Rights Division’s Employment Litigation Section to protect servicemembers’ rights.”
According to the complaint, when Nevada state employees pass their five-year employment anniversary, they can purchase pension credits in the state’s pension system operated by NVPERS. NVPERS charges the employee for these pension credits based on the employee’s age and salary at the time of the purchase. USERRA requires employers to restore returning servicemembers’ pension benefits as if they had not been called away to military service. Servicemembers who are away on military service when they pass their five-year anniversary cannot purchase pension credits until they have returned from military duty. As alleged in the complaint, NVPERS violated USERRA by charging reemployed servicemembers based on their age and salary when they were reemployed, rather than their age and salary when they passed their five-year anniversary.
As explained in the complaint, Major Charles Lehman was an employee in Nevada’s Office of the Attorney General who was called to active duty with the Nevada National Guard on a multi-year term of duty during which he passed his five-year anniversary with the Attorney General’s Office. When he was released from military service and returned to his civilian job, NVPERS overcharged him for his pension credits based on his increased age and salary, an amount that exceeded the amount he would have owed, had he not been away on military service, by more than $38,000. As alleged, NVPERS’ policy of overcharging for these pension credits impacted other state employees returning from military service. The Justice Department seeks to have NVPERS change its policy of overcharging servicemembers, and refund Lehman and any other affected reemployed servicemembers the amounts previously overcharged.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations and provides that servicemembers shall not be discriminated against because of their military obligations. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/servicemembers and www.justice.gov/crt-military/employment-rights-userra as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case stems from a referral by the DOL after an investigation by the DOL’s Veterans’ Employment and Training Service.
Senior Trial Attorney Jeffrey Morrison of the Civil Rights Division’s Employment Litigation Section and Assistant United States Attorney Ednin Martinez of the District of Nevada are handling the case.
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Justice Department Secures Agreement with Patriot Bank to Resolve Lending Discrimination ClaimsRead the Press Release
WASHINGTON – The Justice Department announced today that Patriot Bank (Patriot) has agreed to pay $1.9 million to resolve allegations that the bank engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in Memphis, Tennessee. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in, or seeking to live in, communities of color because of the race, color or national origin of the residents in those communities.
“This settlement embodies Dr. Martin Luther King Jr.’s commitment to promoting economic justice and ensuring that Black Americans and all communities of color are able to achieve the American dream, and equally access credit to purchase a home.,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is dedicated to stamping out discriminatory lending practices across this country and we are vigorously committed to holding lenders accountable, no matter their size. This settlement will provide many Memphis families with access to credit that will improve the quality of their lives while opening up opportunities to build intergenerational wealth.”
“For too long, practices like redlining and discriminatory lending have been used to undermine the promises of our economic system,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “Our office is committed to enforcing fair lending laws and ensuring that banks and lenders are providing communities of color equal access to credit and lending opportunities. This agreement with Patriot Bank signifies an important step toward preserving economic justice and for communities of color in Memphis as they buy homes, start businesses, and take part in the American Dream.”
The department’s complaint alleges, from 2015 through at least 2020, Patriot avoided providing mortgage services to majority-Black and Hispanic neighborhoods in Memphis and discouraged people seeking credit in those communities from obtaining home loans. Patriot’s home mortgage lending was focused disproportionately on white areas around the City of Memphis. Over the same six-year period, other banks received nearly 3.5 times as many loan applications compared to Patriot in majority-Black and Hispanic neighborhoods in Memphis. Even when Patriot generated loan applications from majority-Black and Hispanic areas, the applicants themselves were disproportionately white.
Under the proposed consent order, which is subject to court approval, Patriot will invest $1.9 million to increase credit opportunities for communities of color in Memphis. Specifically, Patriot will:
- Invest at least $1.3 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance for residents of majority-Black and Hispanic neighborhoods;
- Spend $375,000 for advertising, outreach, consumer financial education and credit counseling focused on majority-Black and Hispanic neighborhoods;
- Spend $225,000 on community partnerships to provide services that increase residential mortgage credit access for residents of those neighborhoods;
- Ensure at least two mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods in the Bank’s service area;
- Employ a Director of Community Lending who will oversee the continued development of lending in communities of color; and
- Continuously assess the communities’ credit needs throughout the term of the consent order.
The department opened its investigation into Patriot’s lending practices after receiving a referral from the bank’s regulator, the Board of Governors of the Federal Reserve System. Patriot cooperated with the department’s investigation and worked with the department to resolve the redlining allegations.
In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 11 redlining cases and secured over $109 million in relief for communities of color that have been the victims of lending discrimination across the country.
Additional information about the department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program-0. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online.
View the complaint here.
View the consent order here.
Justice Department Secures Agreement with Patriot Bank to Resolve Lending Discrimination ClaimsRead the Press Release
The Justice Department announced today that Patriot Bank (Patriot) has agreed to pay $1.9 million to resolve allegations that the bank engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in Memphis, Tennessee. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in, or seeking to live in, communities of color because of the race, color or national origin of the residents in those communities.
“This settlement embodies Dr. Martin Luther King Jr.’s commitment to promoting economic justice and ensuring that Black Americans and all communities of color are able to achieve the American dream, and equally access credit to purchase a home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is dedicated to stamping out discriminatory lending practices across this country and we are vigorously committed to holding lenders accountable, no matter their size. This settlement will provide many Memphis families with access to credit that will improve the quality of their lives while opening up opportunities to build intergenerational wealth.”
“For too long, practices like redlining and discriminatory lending have been used to undermine the promises of our economic system,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “Our office is committed to enforcing fair lending laws and ensuring that banks and lenders are providing communities of color equal access to credit and lending opportunities. This agreement with Patriot Bank signifies an important step toward preserving economic justice and for communities of color in Memphis as they buy homes, start businesses and take part in the American Dream.”
The department’s complaint alleges, from 2015 through at least 2020, Patriot avoided providing mortgage services to majority-Black and Hispanic neighborhoods in Memphis and discouraged people seeking credit in those communities from obtaining home loans. Patriot’s home mortgage lending was focused disproportionately on white areas around the City of Memphis. Over the same six-year period, other banks received nearly 3.5 times as many loan applications compared to Patriot in majority-Black and Hispanic neighborhoods in Memphis. Even when Patriot generated loan applications from majority-Black and Hispanic areas, the applicants themselves were disproportionately white.
Under the proposed consent order, which is subject to court approval, Patriot will invest $1.9 million to increase credit opportunities for communities of color in Memphis. Specifically, Patriot will:
-
Invest at least $1.3 million in a loan subsidy fund to increase access to home mortgage, home improvement and home refinance for residents of majority-Black and Hispanic neighborhoods;
-
Spend $375,000 for advertising, outreach, consumer financial education and credit counseling focused on majority-Black and Hispanic neighborhoods;
-
Spend $225,000 on community partnerships to provide services that increase residential mortgage credit access for residents of those neighborhoods;
-
Ensure at least two mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods in the Bank’s service area;
-
Employ a Director of Community Lending who will oversee the continued development of lending in communities of color; and
-
Continuously assess the communities’ credit needs throughout the term of the consent order.
The department opened its investigation into Patriot’s lending practices after receiving a referral from the bank’s regulator, the Board of Governors of the Federal Reserve System. Patriot cooperated with the department’s investigation and worked with the department to resolve the redlining allegations.
In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 11 redlining cases and secured over $109 million in relief for communities of color that have been the victims of lending discrimination across the country.
Additional information about the department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program-0. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online.
us_v._patriot_bank_-_complaint_w_exhibits.pdf consent_order_-_patriot_final.pdf-
Jefferson Parish Man Sentenced for Possessing Unregistered SilencerRead the Press Release
NEW ORLEANS, LOUISIANA – GEORGE PETERSON, age 60, a resident of Waggaman, Louisiana, was sentenced on January 9, 2024, by U.S. District Judge Jay C. Zainey to 24 months imprisonment followed by three years of supervised release, along with a $100 mandatory special assessment fee, after previously pleading guilty to possessing an unregistered firearm silencer, in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871.
According to court documents, Special Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) executed a search warrant at PETERSON’s residence, which also served as the storefront location for his business, PDW Gun Solutions LLC, a federal firearms licensee. During the search, ATF agents discovered a firearm silencer inside a safe in PETERSON’s bedroom. ATF examination of the silencer revealed that ammunition had been fired through it. The silencer was not registered to PETERSON in the National Firearms Registration and Transfer Record, as required by federal statute.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Jacksonville Man Sentenced to Seven Years in Federal Prison on Fentanyl and Firearms ChargesRead the Press Release
Jacksonville, Florida – Senior United States District Judge Henry Lee Adams, Jr. has sentenced Mario Lenard Elbert (34, Jacksonville) to seven years in federal prison for possession with the intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking offense. Elbert had pleaded guilty on August 22, 2023.
According to court documents, on May 11, 2022, a trooper from the Florida Highway Patrol conducted a traffic stop on Elbert’s vehicle due to traffic violations. Elbert fled from the vehicle on foot during the traffic stop but was apprehended following a short pursuit. Elbert had in his possession 54 grams of fentanyl and a loaded pistol. Elbert is prohibited from possessing firearms due to a South Carolina felony conviction (2019) for possessing a controlled substance with the intent to distribute it.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jacksonville Sheriff’s Office, and the Florida Highway Patrol. The case was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Jacksonville Convicted Felon Sentenced to 10 Years on Narcotics and Firearms ChargesRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Keith Allen Dixon (46, Jacksonville) to 10 years in federal prison for distribution of 50 grams or more of actual methamphetamine and possession of a firearm by a convicted felon. Dixon had pleaded guilty on October 4, 2023.
According to court documents, on January 6, 2023, Dixon sold methamphetamine to a confidential informant outside a hotel off Lane Avenue in Jacksonville. Dixon also sold two 20-gauge shotguns during the transaction. Dixon is a convicted felon and is prohibited from possessing firearms or ammunition under federal law. At the time, Dixon was on probation following a conviction in Duval County for the possession of a firearm by a convicted felon. Dixon was accountable for at least 146 grams of pure methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Insurance Producer Admits Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.
Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. district Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.
U.S. Attorney Philip R. Sellinger“Joseph Schwartz admitted to defrauding the United States by failing to pay over to the IRS more than $38 million in payroll taxes. As an employer, Schwartz was required to withhold trust fund taxes from his employees’ paychecks and then dutifully report and turn those monies over to the IRS. Schwartz broke the law when he willfully withheld trust fund taxes from his employees but pocketed the money he had withheld rather than turning it over to the government; he will now be held accountable for his criminal tax violations.”
“Today’s plea is just one more example of our commitment to investigate and prosecute those who fail to comply with their federal tax obligations,” Tammy Tomlins, IRS – Criminal Investigation Special Agent in Charge of the Newark Field Office, said. “The defendant cheated taxpayers out of more than $38 million by failing to comply with the taxes he was beholden to pay on behalf of his employees. IRS Criminal Investigation will hold accountable individuals who willfully participate in tax fraud schemes.”
“Schwartz admits he willfully failed to pay over employment taxes, basically stealing money from his employees and the IRS,” FBI – Newark Special Agent in Charge James E. Dennehy said. “These taxes are an incredibly important facet of how our government functions, making up a significant portion of revenues brought in by the Treasury Department. Other fraudsters currently committing the same fraud should pay attention to the lesson Schwartz learned the hard way – don't cheat the taxman.”
According to documents filed in this case and statements made in court:
From Oct. 31, 2017, through May 30, 2018, Schwartz was the owner of Skyline Management Group LLC and related entities with headquarters in New Jersey. Schwartz admitted that he was required to collect, truthfully account for and pay over to the IRS on behalf of employees of Skyline Management Group the trust fund taxes imposed on their employees by the Internal Revenue Service but failed to do so. The total amount of taxes was $38.9 million.
Schwartz admitted he was also an administrator of the Skyline 401K plan and had an obligation to file an annual Form 5500 financial report with the secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.
The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for May 22, 2024.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.
schwartz.indictment.pdfIndependence Business Owner Sentenced for Multi-Million Dollar Conspiracy to Sell Stolen Catalytic ConvertersRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for leading a conspiracy to sell millions of dollars in stolen catalytic converters to companies in Missouri, Texas, and Louisiana.
James Spick, 58, was sentenced by U.S. District Judge Howard F. Sachs to five years in federal prison without parole. The court also ordered Spick to forfeit to the government $4.4 million, which represents a conservative estimate that 40 percent of the catalytic converters he bought and sold were stolen.
Spick, the owner of J&J Recycling in Independence, pleaded guilty on July 12, 2023, to one count of conspiracy to transport stolen property across state lines.
In his salvage business, Spick primarily buys and resells catalytic converters rather than other automotive parts or recyclable items. Catalytic converters convert toxic gases and pollutants from internal combustion engines into less-toxic pollutants. Catalytic converters contain precious metals such as platinum, rhodium, and palladium. Stolen catalytic converters have value because of the precious metals, which can be extracted from the converters.
For more than four years, Spick made it his primary business to buy and resell stolen catalytic converters. In doing so, he victimized tens of thousands of people whose catalytic converters were stolen from their vehicles. By paying in cash with basically no questions asked, Spick’s entire business model attracted, encouraged, and incentivized thieves and particularly drug addicts.
Spick bought catalytic converters at his business from hundreds of individuals whom he paid in cash. Spick resold the catalytic converters, which he knew to have been stolen, to companies in Missouri (including Kansas City and Lee’s Summit), Texas, and Louisiana. The Texas and Louisiana companies processed the catalytic converters to extract the precious metals.
In January 2021, detectives interviewed a known catalytic converter thief regarding his dealings with Spick. This thief had been caught stealing converters from new vehicles at a car dealership in Kansas. The thief stated that it was common knowledge on the street that Spick’s business was the place to go to sell “questionable” or stolen catalytic converters.
According to court documents, Spick told investigators he sometimes spent $20,000 a day buying catalytic converters and profited about $1,000 a day after expenses. Because he dealt so much in cash, it’s not possible to know the amount of his net profit.
Spick was paid partially in cash by the companies buying catalytic converters. From 2018 to 2021, a Texas company paid Spick $732,021 and an additional $2,622,846 in cash. From 2018 to 2021, a Louisiana company, paid Spick $817,271 and an additional $2,979,074 in cash.
In total from 2018 to 2021, Spick received more than $11 million from companies buying catalytic converters and other car parts.
This case was prosecuted by Assistant U.S. Attorneys Kate Mahoney and Nicholas Heberle. It was investigated by the Missouri State Highway Patrol, the Lee’s Summit, Mo., Police Department, and the Kansas City, Mo., Police Department.
Huntington Man Sentenced to Prison for Role in Methamphetamine Trafficking RingRead the Press Release
CHARLESTON, W.Va. – Elijah Figg, also known as "Bang," 24, of Huntington, was sentenced today to five years and three months in prison, to be followed by three years of supervised release, for distribution of a quantity of methamphetamine. Figg admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, on December 29, 2020, Figg sold 3 pounds of methamphetamine for $16,500 to an individual in Charleston. Figg admitted to using his mobile device to communicate with the individual to arrange the deal. Figg further admitted that he knew the individual was going to redistribute the methamphetamine.
After the transaction, Figg traveled with four other people to the Beckley area of Raleigh County. Law enforcement officers attempted a traffic stop of the vehicle, and the driver attempted to flee. The pursuit ended when the vehicle struck some utility poles. Officers searched the vehicle and found $18,332 and methamphetamine residue. Figg admitted that the money found included the $16,500 he received from the methamphetamine transaction.
Figg participated in a participated in a DTO responsible for distributing large quantities of methamphetamine in the Charleston area. A dozen individuals pleaded guilty in connection with this prosecution. During the course of the nearly year-long investigation, law enforcement seized approximately 15 pounds of methamphetamine, 45 firearms, including an IMI Industries Uzi fully automatic 9mm submachine gun, and more than $375,000 in cash.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department and the Metropolitan Drug Enforcement Network Team (MDENT) for their investigative work, and the U.S. Marshals Service, the West Virginia State Police, and the Appalachia High Intensity Drug Trafficking Area (HIDTA) for providing assistance.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Monica D. Coleman prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations, and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-32 and 2:23-cr-88.
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Huntington Man Pleads Guilty to Making False Declaration in Bankruptcy CaseRead the Press Release
HUNTINGTON, W.Va. – John Christopher Spence, 67, of Huntington, pleaded guilty yesterday to making a false declaration in a bankruptcy case.
According to court documents and statements made in court, on or about April 30, 2019, Spence filed for bankruptcy as an individual and separately on behalf of Park Place Properties LLC, one of his businesses. Spence admitted he knew he was required to identify creditors and submit various schedules of assets and liabilities and a statement of financial affairs in each bankruptcy case. Each schedule and statement of financial affairs was filed in U.S. Bankruptcy Court under criminal penalty for false swearing, concealing property, and obtaining money or property by fraud.
On May 30, 2019, Spence caused to be filed Schedule A/B, a disclosure document, and a statement of financial affairs in his individual bankruptcy case. Spence admitted that he knew both contained inaccurate and misleading information, because he failed to disclose in each that he owned J.C. Spence Company LLC, that he held a 100 percent interest in this company and that this company possessed assets.
Spence further admitted that the Schedule A/B contained inaccurate and misleading information, because he failed to disclose that he had legal or equitable interests in condominiums in Gatlinburg, Tennessee; Scottsdale, Arizona; Avon, Colorado; Port Saint Lucie, Florida; and Myrtle Beach, South Carolina. Spence also admitted that he lied about his legal or equitable interests in any condominiums during a meeting of creditors in his bankruptcy case on June 6, 2019.
In April 2019, Spence used one of his credit cards to purchase airplane tickets to the Grand Cayman Islands, Aruba, and Las Vegas, Nevada. Spence admitted that he intended to defraud the credit card company when he purchased the tickets, because he knew he intended to file for bankruptcy and by filing for bankruptcy would avoid paying back the money.
Spence is scheduled to be sentenced on April 29, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI). The United States Trustee’s Charleston field office, which serves West Virginia, made the criminal referral of this case to the U.S. Attorney’s Office. The United States Trustee Program is a component of the Department of Justice whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jonathan T. Storage 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. 3:23-cr-184.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Tyson Davis II, 28, of Huntington, pleaded guilty today to distribution of a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on November 8, 2021, Davis sold approximately 52 grams of methamphetamine to a confidential informant inside a vehicle on the 1600 block of Doulton Avenue in Huntington. Davis admitted to that transaction and further admitted to selling approximately 27 grams of methamphetamine to the confidential informant on November 3, 2021, in Huntington.
On November 9, 2021, law enforcement officers conducted a search of Davis’ vehicle and Fourth Street West residence in Huntington and seized approximately 399 grams of fentanyl and a loaded Glock 9mm pistol. Davis admitted that he possessed and intended to distribute the seized fentanyl.
Davis is scheduled to be sentenced on May 6, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-241.
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