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17 January 2024
Huntington Man Pleads Guilty to Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Derick Russell Legg, 48, of Huntington, pleaded guilty today to receipt of child pornography.
According to court documents and statements made in court, from on or about September 19, 2019, through on or about January 28, 2020, Legg used peer-to-peer file sharing programs to receive digital media files depicting minors engaged in sexually explicit conduct.
Legg further admitted that he possessed 668 images and 321 videos depicting minors engaged in sexually explicit conduct on an external hard drive in Huntington on or about January 30, 2020. Legg also admitted to possessing additional images and videos of child pornography on his cell phone.
Many of the images and videos possessed by Legg depict known child victims, prepubescent minors and minors subjected to sadistic or masochistic conduct.
Legg is scheduled to be sentenced on April 29, 2024, and faces a mandatory minimum of five years and up to 20 years in prison, at least five years and up to a lifetime 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).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Andrew J. Tessman and Julie M. White are prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 3:22-cr-40.
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Hornell restaurant owner sentenced to tax chargeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Theodore LaFrance, of Hornell, NY, who was convicted of aiding or assisting in the preparation of a false or fraudulent tax return, was sentenced to serve two years’ probation, to include six months of home detention, by Chief U.S. District Judge Elizabeth A. Wolford. LaFrance was also ordered to pay restitution totaling $36,040 to the IRS.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that LaFrance, who owned and operated T&J Country Kitchen Inc. in Hornell, hired Staff Leasing Inc. to provide payroll services for his business. Between 2014 and 2018, LaFrance provided false information to Staff Leasing Inc. regarding the wages T&J Country Kitchen Inc. paid to its cooking and cleaning staff. LaFrance did not report the wages that were paid in cash to staff members. As a result, Staff Leasing Inc. used the false information to complete and file quarterly Forms 941 on behalf of T &J Country Kitchen Inc. IRS. Between 2014 and 2018, T&J Country Kitchen’s 941s did not include a total of $235,560.42 in wages, which resulted in a tax loss of approximately $36,040.74.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
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Honduran convicted smuggler imprisoned for illegally entering country after seven removalsRead the Press Release
LAREDO, Texas – A 42-year-old Honduran man has been sentenced following another conviction for illegally re-entering the United States following an order of removal, announced U.S. Attorney Alamdar S. Hamdani.
Abner Jovani Castellanos pleaded guilty Oct. 4, 2023.
U.S. District Judge Marina Garcia Marmolejo has now ordered him to serve 30 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Castellanos’ previous conviction in 2008 for human smuggling, in which he worked as a brush guide in a smuggling operation. During that attempt, an El Salvadoran man obtained serious injuries and part of his leg had to be amputated after it was caught underneath a moving train – Castellanos and another brush guide ordered the man to jump off the train.
On June 10, 2023, law enforcement encountered Castellanos near Laredo. He was first ordered to be removed from the United States on June 5, 2001, with six subsequent removals from 2001 to 2020, along with prior convictions for illegal entry and illegal re-entry.
Castellanos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Special Assistant U.S. Attorney Terence A. Check Jr. and Assistant U.S. Attorney Brandon Scott Bowling prosecuted the case.
Honduran Drug Dealer Indicted and Detained Pending Trial for Possessing More Than A Kilogram of Fentanyl on Multiple Dates in 2023Read the Press Release
SAN FRANCISCO — A federal magistrate judge has ordered that Defendant Milton Joel Varela Arteaga—a Honduran national who resides in Oakland, California, and was recently indicted by a federal grand jury for possessing large quantities of fentanyl on three separate occasions in 2023—be detained pending trial on fentanyl trafficking charges, announced United States Attorney Ismail J. Ramsey; Homeland Security Investigations (HSI) Special Agent in Charge Tatum King; and Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark.
Arteaga, 27, was originally charged via a criminal complaint in November 2023. Among other things, the complaint alleges that:
• On May 11, 2023, law enforcement officers searched Arteaga’s Oakland residence and seized more than 1.3 kilograms of fentanyl and more than $70,000 in cash. In a post-arrest interview, Arteaga told officers that he regularly sold drugs in the Tenderloin neighborhood of San Francisco;
• On June 28, 2023, law enforcement officers stopped Arteaga in a car as it left the Oakland Airport and seized more than two kilograms of fentanyl and more than $12,000 in cash; and
• On November 29, 2023, federal and state law enforcement officers searched Arteaga’s Oakland residence and found more than half a kilogram of fentanyl in a black Mercedes that belonged to Arteaga and his partner and over $13,000 in cash in their bedroom.
All of the fentanyl seizures described in the complaint occurred while Arteaga was on pretrial release for state narcotics charges filed against him in 2022. Arteaga has been in federal custody since his arrest in late November 2023, and he was ultimately indicted by a federal grand jury on December 13, 2023, on three counts of possession with intent to distribute fentanyl, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(vi). A second defendant was indicted at the same time on similar charges.
“Tackling the scourge of fentanyl is a top priority for my Office,” said U.S. Attorney Ramsey. “Our efforts to disrupt the fentanyl trade take many forms, from prosecuting the dealers who peddle this poison on the streets of the Tenderloin to identifying, arresting, and charging their suppliers. We and our law enforcement partners will hold accountable those who sell or facilitate the sale of this deadly drug at every level.”
“The indictment and subsequent detainment of Mr. Arteaga underscore HSI’s commitment to work with law enforcement agencies to stop the scourge of fentanyl trafficking from further ravaging the Bay Area,” said HSI Special Agent in Charge King. “HSI appreciates the joint investigative work with the DEA, Alameda County Narcotics Task Force, the U.S. Attorney’s Office, and the DOJ OCDETF Program, which resulted in this action. As Mr. Arteaga’s case demonstrates, we will not rest while fentanyl poisons our communities and will pursue its purveyors at every turn to disrupt and ultimately dismantle their operations.”
“Fentanyl is now the leading cause of death for Americans between the ages of 18 to 45 and is the greatest drug threat facing our nation,” said DEA Special Agent in Charge Clark. “DEA’s relentless enforcement efforts in the Tenderloin will continue in pursuit of those who distribute this deadly drug in our community.”
Arteaga was ordered detained by United States Magistrate Judge Peter H. Kang on January 12, 2024. His next scheduled appearance is a status conference before Senior United States District Judge Charles R. Breyer on January 31, 2024.
An indictment and a complaint merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Arteaga faces a minimum prison sentence of five years and a maximum prison sentence of 40 years on each of the three counts on which he is indicted. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Daniel Pastor and Kevin Yeh are prosecuting this case with assistance from Paralegal Specialist Tina Rosenbaum. The prosecution is the result of a federal and state partnership between HSI, DEA, and the Alameda County Narcotics Task Force (ACNTF) to target the distribution of the deadly opioid fentanyl.
Hickory, N.C. Business Owner Pleads Guilty to Tax and Credit Card FraudRead the Press Release
CHARLOTTE, N.C. – James Christopher Robinson, 51, of Granite Falls, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to federal charges for tax and credit card fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Donald "Trey" Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRC-CI), Charlotte Field Office, join U.S. Attorney King in making today's announcement.
According to filed plea documents and today’s court hearing, Robinson was the owner of multiple cabinet manufacturing and retail businesses in the Hickory area, including Cabinet Solutions USA Inc., Best Cabinet Doors, LLC, Cabinet Doors Fast, LLC, and Cox Manufacturing, LLC (collectively, Cabinet Companies). As Robinson admitted in court today, between March 2020 and April 2023, Robinson accessed the credit cards of Cabinet Companies’ customers and without authorization made 294 fraudulent credit card charges totaling approximately $1 million. Robinson also created at least four counterfeit checks totaling more than $93,000, using information from actual checks written to his Cabinet Companies by customers.
Plea documents also show that for tax years 2017 to 2022, Robinson caused two of his companies to fail to comply with their employment tax obligations by failing to timely account for and pay over more than $3.1 million in employment taxes. Court documents indicate that Robinson used the stolen funds to make large cash withdrawals from his business accounts and make hundreds of thousands of dollars in cash deposits at casinos.
Robinson pleaded guilty to access device fraud, which carries a maximum penalty of 15 years in prison, and failure to truthfully account for and pay over trust fund taxes which carries a maximum penalty of five years in prison. Robinson is released on bond. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the FBI, the Secret Service, and IRC-CI for their investigation of the case.
Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Hartford Man Sentenced to 54 Months in Federal Prison for Trafficking FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ANGEL DELGADO, 59, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 54 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, this matter stems from an investigation into gang-related drug trafficking and firearm possession by members of Los Solidos. The investigation, which included court-authorized wiretaps, revealed that Luis Feliciano, also known as “Louminaty,” distributed fentanyl, heroin, cocaine, and crack to customers and other distributors in the Hartford area, including Delgado, and also to individuals in New York and Maine.
On March 31, 2022, after intercepted calls indicated that Feliciano had recently supplied Delgado with drugs, and an investigator successfully ordered 20 sleeves of fentanyl from Delgado over the phone, Delgado was arrested at a hotel in Hartford where he was living. A search of Delgado’s person revealed approximately 250 sleeves of fentanyl and 13 capsules of cocaine, and a search of the hotel room revealed another 1,700 sleeves of fentanyl. Some of the sleeves contained a mixture of fentanyl, heroin, cocaine, and xylazine.
Delgado’s criminal history spans approximately 35 years and includes 26 convictions for drug, assault, failure to appear, violation of a protective order, and other offenses.
Delgado has been detained since his arrest. On June 8, 2022, a federal grand jury returned an indictment charging Delgado, Feliciano, and 14 others with various narcotics distribution and firearm possession offenses.
On February 22, 2023, Delgado pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl.
Feliciano has pleaded guilty and awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff. through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Randolph Man Charged with Conspiracy to Obtain a Passport Through False StatementsRead the Press Release
BOSTON – A Nigerian citizen, previously deported from the United States, has been indicted by a federal grand jury with conspiring to make a false statement in an application for a United States passport.
Chukwunonso “Nonso” Obiora, 36, formerly of Randolph, was indicted on one count of conspiracy. Obiora was previously charged by complaint and detained in October 2023. He will appear in federal court in Boston at a later date.
According to the indictment, Obiora and one of his brothers allegedly agreed to submit a fraudulent application for a United States passport. Specifically, it is alleged that in May 2023, the brother falsely reported that he had lost his passport and completed an application for a new passport at a United States Postal Service facility in Watertown. The application allegedly bore the brother’s name and Obiora’s photograph. It is alleged that, in or about August 2023, the brother mailed the passport to Obiora in Nigeria.
The charge of conspiracy to obtain a United States passport through false statements carries a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of the Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Pittsburgh Man Sentenced for Federal Drug and Identity Theft ViolationsRead the Press Release
PITTSBURGH, Pa. - A resident of Conestoga (Lancaster County), Pennsylvania, has been sentenced in federal court to nine months in prison followed by three years of supervised release on his conviction of violating federal drug and identity theft laws, United States Attorney Eric G. Olshan announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Andrew Black, 37, formerly of Pittsburgh, now of Conestoga.
According to information presented to the court, on March 31, 2020, Black attempted to possess with the intent to distribute methamphetamine when he ordered two ounces of methamphetamine from a “dark web” site. The package was intercepted by United States Postal Inspectors. Further, from January 2018 through March 2020, Black used fraudulently obtained personal identifying information to open bank accounts and credit cards in the names of unknowing victims in an attempt to obtain money illicitly to purchase illegal drugs.
Assistant United States Attorneys Stephen R. Kaufman and William B. Guappone prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Secret Service and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Black.
Former Omaha Councilman and Former Omaha Police Officer Sentenced for Fraud ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Vincent J. Palermo, 50, of Omaha, Nebraska, and Richard Gonzalez, 55, of Papillion, Nebraska, were sentenced on January 16, 2024, in federal court in Lincoln, Nebraska, for conspiracy to commit honest services fraud. Senior United States District Judge John M. Gerrard sentenced Palermo to 18 months’ imprisonment and Gonzalez to 18 months’ imprisonment. Additionally, Palermo was sentenced to a consecutive 9-month term of imprisonment for a violation of supervised release. There is no parole in the federal system. After Palermo’s release from prison, he will begin a 2-year term of supervised release. After Gonzalez’s release from prison, he will begin a 3-year term of supervised release. Senior Judge Gerrard ordered Palermo to pay $10,292.28 in restitution and Gonzalez $66,749.35 in restitution.
From January 2018 to April 1, 2023, Palermo, while an Omaha City Councilman, received personal and financial benefits to include airfare, luxury hotel accommodations, travel arrangements, and other items of value in exchange for official actions. These benefits were intended to influence Vincet Palermo’s actions as an Omaha City Councilman to benefit the Police Athletics for Community Engagement (PACE) and the Latino Peace Officers Association (LPOA). During this time, co-defendant Gonzalez was the Executive Director of PACE and a member of LPOA. Palermo failed to disclose to the City Counsel the private benefits that he was receiving while taking official acts for the benefit of LPOA and PACE.
From 2017 to April 1, 2023, Gonzalez conspired to defraud donors of the LPOA, the LPOA Board, and PACE for his own personal benefit. Gonzalez, a retired Omaha Police Department Captain, without having full LPOA Board authority, conducted financial transactions for his personal benefit using LPOA funds. LPOA funds were misused by Gonzalez for trips, meals, and gambling. Gonzalez also misused LPOA funds to purchase trips for friends and co-defendant Palermo, which included a trip to Las Vegas.
After Tuesday’s sentencings, FBI Omaha Special Agent in Charge Eugene Kowel said, “Both former city councilman Vinny Palermo and former police officer Richard Gonzalez were entrusted to represent our communities' interest, but instead chose to betray that trust through their abuse of public office for personal gain. The FBI is committed to working with our law enforcement partners to aggressively investigate, pursue, and hold accountable those who violate their oath of office to enrich themselves. Public corruption is a top criminal investigative priority for the FBI, and we encourage everyone in our community to continue to come forward and report abuses of public office.”
Co-defendant Johnny Palermo’s change of plea hearing is scheduled for January 18, 2024, in Lincoln. Co-defendant Jack Olson’s trial is scheduled for April 10, 2024, before Senior Judge Gerrard in Lincoln. Each defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Federal Bureau of Investigation.
Former Oahu Schoolteacher Sentenced to 17.5 Years in Prison for Producing Child PornographyRead the Press Release
HONOLULU –Senior United States District Judge Susan O. Mollway sentenced Alden Bunag, 35, of Honolulu, yesterday to 210 months in prison and 15 years of supervised release for production of child pornography. Bunag will also be required to register as a sex offender and pay identified victims $30,000 in restitution. Bunag has been detained in custody since he was arrested in June 2022 at an Oahu high school where he was working as a summer schoolteacher. Bunag pleaded guilty to the child pornography production offense on May 19, 2023.
According to information produced to the court, from around 2017 through 2018, when Bunag was working as a middle school teacher on Oahu, he engaged in repeated sexual activity with a 13-year-old student. Bunag recorded the sexual activity on multiple occasions, which took place in his middle school classroom. He later sent the video(s) to others, including a teacher in Pennsylvania, who was also prosecuted for child exploitation offenses. In addition to the videos Bunag recorded of his former student, he also possessed thousands of images of child pornography, to which he had access to from his phone on the date of his arrest. The videos included young male children being sexually assaulted while bound and in pain. Bunag distributed several of these videos to the Pennsylvania teacher and others.
“Bunag’s sentence reflects the horrendous nature of the crimes he committed, including against a child for whom the classroom became a place of torture rather than learning and nurturing,” said United States Attorney Clare E. Connors. “Child abusers cause incredible harm to the most vulnerable members of our community, and we will continue to hold them accountable under the law.”
“This sentence shows that the FBI will target those individuals who prey on our most vulnerable members of our community and do whatever it takes to protect our keiki,” said FBI Special Agent in Charge Steven Merrill. “We will hold them accountable for their heinous actions especially when they were entrusted by students and parents alike to serve as role models and not a sexual predator going after young boys.”
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Rebecca Perlmutter handled the prosecution.
Former Law Enforcement Union Officials Sentenced to Prison for Defrauding Union’s Annuity FundRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that KENNETH WYNDER Jr., a former New York State Trooper and the president of the Law Enforcement Employees Benevolent Association (“LEEBA”), a labor union for law enforcement officers employed by the City of New York (the “City”), was sentenced to 40 months in prison, and ANDREW BROWN, a/k/a “Drew Brown,” the former financial advisor for LEEBA, was sentenced to 18 months in prison, for defrauding union members by misappropriating money from LEEBA’s Annuity Fund. WYNDER was also sentenced for personal income tax evasion and conspiring to evade federal taxes, including payroll taxes owed by LEEBA and its employees. WYNDER and BROWN were convicted after a five-day jury trial before U.S. District Judge P. Kevin Castel, who imposed today’s sentence. In addition, STEVEN WHITTICK, LEEBA’s former treasurer and a former police officer for New York City’s Department of Environmental Protection (“DEP”), previously pled guilty to conspiring to commit tax evasion and making false statements to law enforcement and was sentenced to 28 months in prison.
U.S. Attorney Damian William said: “Kenneth Wynder and Andrew Brown raided union-sponsored retirement accounts for years, placing their self interest over the hard-working public servants they represented as the president and financial advisor of the union, respectively. Wynder also evaded taxes on cash, checks, and other income he obtained from the union, including as a product of their theft from the union members’ retirement accounts. Union officials and advisors who violate their duties to the union members they represent will face serious consequences for their abuse of trust.”
According to the Indictment, Superseding Indictment, the underlying complaints filed in this case, as well as other publicly available information, prior court filings, and evidence presented during the trial in Manhattan federal court:
Law Enforcement Employees Benevolent Association and the Annuity Fund
LEEBA is a labor union that has acted as the collective bargaining representative principally for law enforcement personnel at various City agencies and has entered into agreements on behalf of those law enforcement employees, including agreements for insurance and retirement benefits. The City agencies whose employees LEEBA represented included, at various times, DEP, the Department of Sanitation (“Sanitation”), and the Department of Transportation (“Transportation”).
The Annuity Fund is a LEEBA fund that received monthly contributions from the City for the benefit of LEEBA’s members and maintained separate accounts for each fund member. These accounts were functionally similar to employer-sponsored 401(k) retirement accounts. WYNDER was a Trustee of the Annuity Fund and signatory to agreements that governed the fund, and BROWN was a Plan Administrator and Financial Advisor of the Annuity Fund. Under the relevant agreements and plans, the money in the Annuity Fund could be used for no purpose other than funding individual members’ retirement accounts and defraying reasonable administrative expenses of the Annuity Fund itself.
WYNDER
WYNDER, a former New York State Trooper, is the founder and former President of LEEBA and a former member of LEEBA’s board of directors. WYNDER also formerly served as the Fund Administrator of the Annuity Fund and as a member of the board of trustees of the Annuity Fund, pursuant to which he owed a fiduciary duty to act in the best interests of the Annuity Fund and its account holders. WYNDER also was on the board of trustees of the LEEBA Welfare Fund (the “Welfare Fund,” and collectively with the Annuity Fund, the “LEEBA Funds”), which provided supplemental insurance benefits to its members. While occupying those positions, WYNDER centralized and controlled major decision-making authority for LEEBA and the LEEBA Funds, often acting without the proper approval of their respective boards of directors or trustees. WYNDER’s de facto dominance of LEEBA and the LEEBA Funds enabled him to make decisions in his own self-interest and contrary to the interests of the Annuity Fund and individual members.
BROWN
BROWN, the founder of a Westchester-based financial services company, is the former Benefits Administrator and insurance broker for LEEBA and the LEEBA Funds. As a LEEBA Annuity Fund Plan Administrator and Financial Advisor, BROWN helped manage the investments in the Annuity Fund, receiving a commission for his services, and had a responsibility to act in the best interest of LEEBA’s members.
WYNDER’s and BROWN’s Fraud Scheme
From at least in or about 2012 up to and including 2020, WYNDER and BROWN participated in a scheme to steal, embezzle, and misappropriate money from the Annuity Fund and individual members’ retirement accounts. Specifically, WYNDER and BROWN made hundreds of thousands of dollars of fraudulent transfers from the Annuity Fund to LEEBA’s operating account, which WYNDER controlled, and WYNDER regularly used the funds, once transferred from the Annuity Fund, to enrich himself at union members’ expense, including through unauthorized and excessive checks to himself and cash withdrawals for his own benefit and to pay insurance benefits for which BROWN received commissions. In addition, WYNDER caused the union to pay for various personal expenses such as the purchase of a Lexus automobile, travel expenses to Dallas to watch a Dallas Cowboys football game, and a sailing trip, all paid for by the union, and none of which were contemporaneously reported to the Internal Revenue Service (“IRS”), as required.
To accomplish this fraudulent scheme, WYNDER and BROWN, acting in their capacity as the Annuity Fund’s Plan Administrators, repeatedly made false and misleading statements to a third-party retirement plan manager that served as the custodian for the Annuity Fund and the retirement accounts of individual union members, including through emails and faxes that WYNDER and BROWN used to withdraw increasingly large sums of money from the Annuity Fund, effectively causing such withdrawals to be made from the retirement accounts of individual members. From in or about 2014 through in or about 2019, WYNDER and BROWN caused the withdrawal of more than $500,000 from the individual retirement accounts that constitute the Annuity Fund, thereby wiping out the entire balance of certain members’ accounts. Without these improper withdrawals from the Annuity Fund, the LEEBA operating account would have been insolvent and would have had insufficient funds to pay for WYNDER’s excessive checks to himself and cash withdrawals and the personal expenses he caused to be charged to that account, as well as to pay for benefits for which BROWN made commissions as an insurance broker.
In addition, throughout the duration of this scheme, WYNDER and BROWN repeatedly made and approved false and misleading statements to LEEBA’s members and prospective members about how they were purportedly using and protecting their retirement accounts and the LEEBA Annuity Fund. WYNDER further concealed the scheme by causing LEEBA to fail to timely file mandatory reports and financial disclosures with the City and public reports to the Annuity Fund’s members and by making false statements to the Annuity Fund’s auditors and accountants.
WYNDER’s and WHITTICK’s Tax Evasion Scheme
From at least in or about 2015 through 2019, WYNDER participated in a conspiracy with LEEBA’s then-Treasurer, WHITTICK, to cause LEEBA to make payments to WYNDER and WHITTICK, by check and in cash, and to conceal those payments from the IRS. WYNDER and WHITTICK further conspired to ensure that such payments were made outside of LEEBA’s payroll processor. WYNDER and WHITTICK then concealed these payments from the IRS — including off-the-books payments to WYNDER of more than $400,000 — in order to evade their own personal income taxes and to evade the payroll taxes that were owed by LEEBA and certain LEEBA employees.
WHITTICK’s False Statements to Federal Agents
In or about October 2019, while serving as LEEBA’s Treasurer and after learning of a federal investigation into LEEBA’s finances – including the investigation of an alleged embezzlement scheme that ultimately resulted in wire fraud charges against WYNDER – WHITTICK repeatedly lied to federal agents in an effort to obstruct that investigation. WHITTICK did so despite personal involvement in some of the financial improprieties with which WYNDER was convicted. For example, on at least two occasions, on or about February 1, 2018, and March 30, 2018, WHITTICK withdrew $16,000 in cash from a LEEBA bank account and on each occasion deposited $15,000 cash into Wynder’s personal bank account and $1,000 cash into WHITTICK’s own personal bank account.
After the FBI executed a search warrant of LEEBA’s offices in September 2019, WHITTICK attempted to obstruct and to influence the ongoing federal investigation by making, in two different interviews with law enforcement agents, false statements about, among other subjects, cash withdrawals he made from LEEBA’s bank accounts, unauthorized withdrawals from LEEBA’s Annuity Fund and from the individual retirement accounts of Fund participants, and LEEBA’s payment for certain travel and entertainment expenses for union officers, including WHITTICK and WYNDER.
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In addition to his prison term, WYNDER, 60, of Stroudsburg, Pennsylvania, was ordered to forfeit $529,000 and to pay $838,683 in restitution.
In addition to his prison term, BROWN, 56, of Putnam Valley, New York, was ordered to forfeit $3,049 and to pay $529,000 in restitution.
On November 17, 2021, WHITTICK, 54, of Kingston, New York, was sentenced to 28 months in prison and ordered to pay $179,766 in restitution.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the Department of Labor Office of Labor-Management Standards, and IRS, Criminal Investigation. Mr. Williams also thanked the New York City Comptroller’s Office and the New York City Department of Investigation for their assistance.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution, with the assistance of Paralegal Specialists Connor Hamill and Lauren Scarff.
Former Banking Executive Pleads Guilty to Evading Anti-Money Laundering RegulationsRead the Press Release
The former vice president of a bank located in Missouri pleaded guilty today to assisting high-risk bank customers in evading the bank’s anti-money laundering controls.
Peter McVey, 45, of Kansas City, Missouri, who served as vice president and director of treasury services for a bank, pleaded guilty to failing to maintain an appropriate anti-money laundering program under the Bank Secrecy Act (BSA).
According to court documents, between April 2014 and July 2022, McVey assisted high-risk bank customers engaged in deceptive sweepstakes and short-term online loan activities in evading the bank’s anti-money laundering controls. Specifically, McVey worked with other bank officials and customers to submit fraudulent Currency Transaction Report exemption forms to the Financial Crimes Enforcement Network and knowingly accepted forged bank forms from customers that permitted them to exceed applicable limits on daily transaction values. McVey also admitted that he did not follow know-your-customer or suspicious activity report requirements.
McVey faces a maximum penalty of 10 years in prison. He will also pay a fine of $20,000, which is equal to his 2018 bonus from the bank. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Special Agent in Charge Justin R. Bundy of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Kansas City Region, Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation (IRS:CI) St. Louis Field Office, and Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division made the announcement.
FDIC-OIG, IRS:CI, and the FBI are investigating the case.
Trial Attorney Chad M. Davis of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Kathleen D. Mahoney, Patrick D. Daly, and Matthew N. Sparks for the Western District of Missouri are prosecuting the case.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Firearm Discharge in Residential Neighborhood Leads to Federal Charge for Bangor ManRead the Press Release
BANGOR, Maine: A Bangor man pleaded guilty today in U.S. District Court in Bangor to being a felon in possession of a firearm and ammunition.
According to court records, in September 2023, officers with the Bangor Police Department responded to a report that a male had fired a handgun in a residential area. A bystander directed officers to Toman Caudill, 31, and he was taken into custody when officers found a box of 9mm ammunition in his backpack. Further investigation revealed that Caudill had discharged a Ruger 9mm pistol and then handed the firearm to his fiancée as officers approached. Caudill stated that he had fired the gun due to an altercation with another male. The Ruger 9mm pistol was recovered and seized, as was the ammunition from Caudill’s backpack.
Caudill is prohibited from possessing a firearm or ammunition due to multiple prior felony convictions.
Caudill faces up to 15 years in prison, a fine up to $250,000 and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bangor Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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Federal Jury Convicts Repeat OffenderRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a federal jury convicted a Cecil County, Maryland man on charges of possession of cocaine and methamphetamine with intent to distribute and possession of a firearm by a person prohibited. U.S. District Judge Richard G. Andrews accepted the verdict.
According to court records and evidence presented at trial, George Griffin, 38, was arrested on September 9, 2022, after a long-term Maryland State Police investigation during which Griffin sold drugs to an informant. On the day of his arrest, officers found about 125 grams of cocaine hidden in his engine compartment, and over a pound and a half of pure methamphetamine and four guns hidden in Griffin’s friend’s Delaware apartment. Alongside the methamphetamine and guns, police found documents belonging to the defendant, and DNA comparison further tied Griffin to the guns.
U.S. Attorney Weiss said, “Mr. Griffin had three prior drug felony convictions. Fortunately, his willful disregard for the law came to an end with this guilty verdict. While Mr. Griffin went to great lengths to distance himself from his drugs and guns, law enforcement doggedly investigated him until they found and seized those drugs and guns and brought the defendant to justice. I commend the law enforcement agencies for their teamwork and determination in investigating this case.”
“Homeland Security Investigations’ Wilmington office, along with our partner agencies, stopped at nothing during the investigative and prosecutorial phases of this case, culminating in the significant conviction of this dangerous criminal, said Special Agent in Charge of HSI Philadelphia William S. Walker. “Violence and addiction inextricably linked to drug trafficking organizations degrade our communities and endanger the health and safety of the American public. As a result of the teamwork between investigators and prosecutors in this case, Mr. Griffin will now be held accountable for his crimes.”
Griffin faces a maximum penalty of 20 years in prison when sentenced on May 15, 2024. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by U.S. Homeland Security Investigations, U.S. Postal Inspection Service, Maryland State Police, Delaware State Police, Newport Police, and New Castle County Police. Assistant U.S. Attorneys Jennifer K. Welsh and Benjamin L. Wallace are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:23-cr-00033-RGA.
Federal Judge Sentences Drug Traffickers to Combined 56 Years in PrisonRead the Press Release
MIDLAND, Texas – A Midland man and woman were sentenced in a federal court in Midland to a combined 56 years in prison for methamphetamine trafficking and firearm charges.
According to court documents, Nikky Nicole Lujan, 37, and Raul Gonzalez, 38, possessed and distributed more than 11 kilograms of methamphetamine in and around Midland. Gonzalez was also sentenced for possessing a firearm in furtherance of a drug trafficking crime. Midland police officers located and recovered methamphetamine, firearms, body armor, and thousands of dollars in currency while executing a search warrant at Gonzalez’s residence in May 2023.
Lujan and Gonzalez both pleaded guilty to multiple counts on Sept. 20, 2023. Lujan was sentenced to prison for 340 months, just over 28 years. Gonzalez was sentenced to prison for 334 months, just under 28 years.
“I appreciate the efforts of our local law enforcement partners for disrupting the drug trafficking operations of a major meth supply chain in the Permian Basin,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “The severe sentences in this case should serve as a warning to drug traffickers who operate in our communities. You will be vigorously prosecuted in this district, and you risk meeting the same demise.”
“This case serves as yet another example of the outstanding working relationship established between local law enforcement and our federal partners,” said Midland Police Chief Seth Herman. “I commend the efforts of our Midland Division Office and their unwavering dedication to protecting citizens throughout the Permian Basin.”
Midland PD investigated the case.
Assistant U.S. Attorney Joe Mahoney prosecuted the case.
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Farmington Man Pleads Guilty to ArsonRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Ulrick Bruce Canyon pled guilty to arson of a dwelling. Canyon, 40, of Farmington and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
In his plea agreement, Canyon admitted to completely burning down a residence within the exterior boundaries of the Navajo Nation on Aug. 28, 2023. Canyon started the fire by pouring lighter fluid in the bedrooms of the residence, then, after lighting the fire, threw two propane tanks into the fire. Canyon then left the residence with a wheelbarrow full of his clothing, at which time he was intercepted by Navajo Nation Police officers.
At sentencing, Canyon faces up to life in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office with assistance from the Navajo Nation Police Department and the Navajo Department of Criminal Investigations investigated this case. Assistant U.S. Attorney Matthew J. McGinley is prosecuting the case.
View the Indictment View the Plea Agreement# # #
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El Departamento de Justicia llega a un acuerdo con Patriot Bank para resolver quejas de discriminación crediticiaRead the Press Release
El Departamento de Justicia anunció hoy que Patriot Bank (Patriot) ha acordado pagar $1.9 millones para resolver las alegaciones de que incurrió en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra e hispana en Memphis, Tennessee. La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven o desean vivir en comunidades de color por motivos de la raza, el color de piel o el origen nacional de los residentes de esas comunidades.
“Este acuerdo encarna el compromiso del Dr. Martin Luther King, Jr. de promover la justicia económica y garantizar que los estadounidenses negros y todas las comunidades de color puedan lograr el sueño americano y disponer de la igualdad de acceso al crédito para comprar una casa”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “El Departamento de Justicia se dedica a erradicar las prácticas crediticias discriminatorias en todo este país y nos comprometemos con firmeza a hacer responsables a los prestamistas, independientemente de su tamaño. Este acuerdo proporcionará a muchas familias de Memphis acceso al crédito que mejorará la calidad de sus vidas a la vez que creará oportunidades para construir riqueza intergeneracional”.
“Durante demasiado tiempo, se han utilizado prácticas como la exclusión financiera y préstamos discriminatorios para socavar las promesas de nuestro sistema económico», dijo Kevin G. Ritz, el Fiscal Federal para el Distrito Oeste de Tennessee. “Nuestra oficina se compromete a hacer cumplir las leyes de préstamos justos y a garantizar que los bancos y prestamistas proporcionen a las comunidades de color la igualdad de acceso al crédito y oportunidades crediticias. Este acuerdo con Patriot Bank representa un paso importante hacia la preservación de la justicia económica y para las comunidades de color en Memphis a medida que compran casas, establecen negocios y participan en el sueño americano”.
La queja del Departamento alega que, desde el 2015 hasta al menos el 2020, Patriot evitó la provisión de servicios hipotecarios a barrios de mayoría negra e hispana en Memphis y desalentó a las personas que buscaban un préstamo en esas comunidades de obtener préstamos hipotecarios. Los préstamos hipotecarios residenciales de Patriot se centraron desproporcionadamente en áreas blancas por la zona metropolitana de Memphis. Durante el mismo período de seis años, otros bancos recibieron casi 3.5 veces más solicitudes de préstamos en comparación con Patriot en barrios de mayoría negra e hispana en Memphis. La queja también alega que, incluso cuando Patriot generó solicitudes de préstamos de áreas de mayoría negra e hispana, los propios solicitantes eran desproporcionadamente blancos.
En virtud de la orden de consentimiento propuesta, que queda sujeta a la aprobación del tribunal, Patriot invertirá $1.9 millones para aumentar las oportunidades crediticias para las comunidades de color en Memphis. En concreto, Patriot:
- Invertirá al menos $1.3 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, mejoras en la vivienda y refinanciamiento residencial para residentes de barrios de mayoría negra e hispana;
- Gastará $375,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra e hispana;
- Gastará $225,000 en asociaciones comunitarias para proporcionar servicios que aumenten el acceso al crédito hipotecario residencial para residentes de esos barrios;
- Asegurará que al menos dos agentes de crédito hipotecario estén dedicados a servir a barrios de mayoría negra e hispana en el área de servicio del Banco;
- Empleará a un Director de Préstamos Comunitarios que supervisará el desarrollo continuo de préstamos en comunidades de color y
- Evaluará continuamente las necesidades crediticias de las comunidades mientras sigan en vigor la orden de consentimiento.
El Departamento inició su investigación sobre las prácticas de préstamo de Patriot después de recibir una recomendación del regulador del banco, la Junta de Gobernadores del Sistema de la Reserva Federal. Patriot cooperó con la investigación del Departamento y trabajó con el Departamento para resolver las alegaciones de exclusión financiera.
En octubre del 2021, el Fiscal General Merrick B. Garland y la Fiscal General Auxiliar Kristen Clarke lanzaron la Iniciativa contra la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley para abordar esta forma persistente de discriminación contra las comunidades de color. Desde el año 2021, el Departamento ha anunciado once casos de exclusión financiera y ha obtenido $109 millones por concepto de compensación para comunidades de color que han sido víctimas de discriminación crediticia por todo el país.
Puede encontrar información adicional sobre la aplicación de las leyes de préstamos justos del Departamento en www.justice.gov/crt/fair-lending-program-0. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
us_v._patriot_bank_-_complaint_w_exhibits.pdf consent_order_-_patriot_final.pdfDefendants Sentenced to Prison in Separate Project Safe Neighborhoods CasesRead the Press Release
MACON, Ga. – Three defendants with lengthy criminal histories who were found guilty by federal juries of illegally possessing firearms resulting from Project Safe Neighborhoods investigations in South Georgia were sentenced to prison today.
Demetris Gervone Bellamy, 32, of Ray City, Georgia, was sentenced to serve 260 months in prison to be followed by five years of supervised release after he was convicted Aug. 17, 2023, of one count of possession of a firearm by a convicted felon, one count of possession with intent to distribute 50 grams or more of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
Joshua Granger, 35, of Orlando, Florida, was sentenced to serve 120 months in prison to be followed by three years of supervised release after he was convicted Aug. 16, 2023, of one count of illegal possession of a firearm by a convicted felon.
Shi-Young Lamar Sharper, 39, of Valdosta, Georgia, was sentenced to serve 120 months in prison to be followed by three years of supervised release after he was convicted July 26, 2023, of one count of illegal possession of a firearm by a convicted felon.
U.S. District Judge Hugh Lawson presided over today’s sentencings which occurred at the U.S. Courthouse in Macon.
“These cases involved armed defendants with criminal histories who repeatedly violated the law, brought to federal attention as a result of the Valdosta Division’s Project Safe Neighborhoods Task Force,” said U.S. Attorney Peter D. Leary. “Our office is focused on reducing crime in our communities; holding repeat and violent offenders accountable is one part of a combined community and law enforcement effort to address violent crime through Project Safe Neighborhoods.”
“These sentences are a direct result of what good multi-jurisdictional partnerships and communication can accomplish,” said Rich Bilson, Supervisory Senior Resident Agent of FBI Atlanta’s Valdosta office. “We are grateful for all the hard work by our partners that allowed these repeat offenders to be removed from the streets before they could commit any worse crimes.”
“The federal, state and local collaboration through Project Safe Neighborhoods helps us get violent, repeat criminals off the streets. We are thankful for this continuing partnership,” said Lowndes County Sheriff Ashley Paulk.
For more information about the Bellamy case, please visit https://www.justice.gov/usao-mdga/pr/jury-convicts-ray-city-man-armed-meth-trafficking; for information about the Granger case, please visit https://www.justice.gov/usao-mdga/pr/florida-man-convicted-illegally-possessing-gun-valdosta-psn-case; and for information about the Sharper case, please visit https://www.justice.gov/usao-mdga/pr/jury-convicts-felon-illegally-possessing-gun.
These cases were prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime by bringing together a broad spectrum of stakeholders to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results.
The Bellamy and Granger cases were investigated by the Lowndes County Sheriff’s Office. Assistant U.S. Attorney Hannah Couch and Criminal Chief Leah McEwen prosecuted the cases for the Government.
The Sharper case was investigated by the Lowndes County Sheriff’s Office and FBI. Assistant U.S. Attorneys Monica Daniels and Sonja Profit prosecuted the case for the Government.
Dauphin County Man Sentenced for Straw Purchasing FirearmsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Riley Simmons, age 32, of Harrisburg, Pennsylvania, was sentenced on January 16, 2023, to time-served (13 months in prison) by United States District Court Judge Christopher C. Conner for making materially false statements in connection with acquisition of firearms. Judge Conner also ordered Simmons to serve a two-year term of supervised release, including six months on home detention, and to pay a $700 fine.
According to United States Attorney Gerard M. Karam, Simmons previously pleaded guilty to two counts of making false statements during the purchase of a firearm. Between September 2018 and February 2019, Simmons purchased five firearms from Federal Firearms Licensees in Dauphin and Cumberland Counties, knowing that they were for friends who were prohibited from possessing them due to prior felony convictions. Three of the firearms were later recovered in possession of felons with whom Simmons lived or associated. One of the firearms was used in a Harrisburg shooting in February 2019 and one bore the print of an individual wanted for attempted murder in Williamsport. Two of the firearms remain missing today.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dauphin County District Attorney’s Office. Assistant U.S. Attorney Christian Haugsby prosecuted the case.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
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D.C. Rapper, a Fox 5 Gang Affiliate, Sentenced to 30 Months in Prison on Multiple Firearms ChargesRead the Press Release
WASHINGTON – Russell Campbell, 21, of Washington, D.C., was sentenced today to 30 months in prison in connection with his possession of a Glock firearm and possession of an AK-style pistol recovered during a traffic stop by the U.S. Secret Service.
The sentencing was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Special Agent in Charge Michael Buck of the U.S. Secret Service Uniformed Division, and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Campbell is an influential rapper who performs as “Gizwop.” He is affiliated with a violent group originating in 37th Place SE that refers to themselves as the Fox 5 Gang.
In addition to the prison term, Campbell was ordered by U.S. District Court Judge Christopher R. Cooper to serve three years of supervised release.
Campbell pleaded guilty September 21, 2023, to a two-count indictment, charging him with one count of unlawful possession of a firearm while under indictment and one count of unlawful possession of a firearm and ammunition by a person convicted of a felony.
According to the government’s evidence, on November 8, 2020, Campbell was charged in D.C. Superior Court for carrying a pistol without a license. While on release in that case, on June 20, 2021, Campbell was armed with a loaded firearm while in the vicinity of a gas station on the 2200 block Bladensburg Road NE. Specifically, from Campbell’s waistband, officers recovered a Glock 45 with 23 rounds of ammunition loaded in an extended magazine.
Four months later, on October 20, 2021, while still under court-ordered supervision, Campbell was involved in a shootout in the 200 block of 37th Place SE. Campbell was charged in D.C. Superior Court and ultimately plead guilty to carrying a pistol without a license in connection with this shootout on May 25, 2022. On June 7, 2022, Campbell was sentenced to six months in prison, with all that time suspended under the Youth Rehabilitation Act (YRA), and with 18 months’ supervised probation.
Despite being a felon, and after having been ordered by the Court to not possess any firearms, on November 11, 2022, Campbell occupied a vehicle containing five firearms, one of which was forensically linked to him. On the evening of November 10, 2022, surveillance from the 200 block of 37th Place SE recorded Campbell entering a vehicle at about 5:30 p.m. carrying a green and black backpack, later found to contain an AK-style pistol.
About 3 a.m. on November 11, 2022, Campbell, four others left the club in the vehicle. U.S. Secret Service performed a traffic stop on the vehicle Campbell occupied in the 800 block of 7th Street, NW. Therein, law enforcement found five different firearms and the green and black backpack. Inside the backpack was a Zastava AK-Style with an extended magazine holding thirty .556 caliber live rounds and one live round in the chamber. Campbell was included in the DNA profile from the AK-Style pistol and the attached magazine.
This case was investigated by the MPD. It was prosecuted by Assistant U.S. Attorney Sitara Witanachchi of the Violence Reduction and Trafficking Offenses Section in the U.S. Attorney’s Office for the District of Columbia with valuable assistance provided by former Assistant U.S. Attorney Andy Wang.
D.C. Rapper, a Fox 5 Gang Affiliate, Sentenced to 30 Months in Prison on Multiple Firearms ChargesRead the Press Release
WASHINGTON – Russell Campbell, 21, of Washington, D.C., was sentenced today to 30 months in prison in connection with his possession of a Glock firearm and possession of an AK-style pistol recovered during a traffic stop by the U.S. Secret Service.
The sentencing was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Special Agent in Charge Michael Buck of the U.S. Secret Service Uniformed Division, and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Campbell is an influential rapper who performs as “Gizwop.” He is affiliated with a violent group originating in 37th Place SE that refers to themselves as the Fox 5 Gang.
In addition to the prison term, Campbell was ordered by U.S. District Court Judge Christopher R. Cooper to serve three years of supervised release.
Campbell pleaded guilty September 21, 2023, to a two-count indictment, charging him with one count of unlawful possession of a firearm while under indictment and one count of unlawful possession of a firearm and ammunition by a person convicted of a felony.
According to the government’s evidence, on November 8, 2020, Campbell was charged in D.C. Superior Court for carrying a pistol without a license. While on release in that case, on June 20, 2021, Campbell was armed with a loaded firearm while in the vicinity of a gas station on the 2200 block Bladensburg Road NE. Specifically, from Campbell’s waistband, officers recovered a Glock 45 with 23 rounds of ammunition loaded in an extended magazine.
Four months later, on October 20, 2021, while still under court-ordered supervision, Campbell was involved in a shootout in the 200 block of 37th Place SE. Campbell was charged in D.C. Superior Court and ultimately plead guilty to carrying a pistol without a license in connection with this shootout on May 25, 2022. On June 7, 2022, Campbell was sentenced to six months in prison, with all that time suspended under the Youth Rehabilitation Act (YRA), and with 18 months’ supervised probation.
Despite being a felon, and after having been ordered by the Court to not possess any firearms, on November 11, 2022, Campbell occupied a vehicle containing five firearms, one of which was forensically linked to him. On the evening of November 10, 2022, surveillance from the 200 block of 37th Place SE recorded Campbell entering a vehicle at about 5:30 p.m. carrying a green and black backpack, later found to contain an AK-style pistol.
About 3 a.m. on November 11, 2022, Campbell, four others left the club in the vehicle. U.S. Secret Service performed a traffic stop on the vehicle Campbell occupied in the 800 block of 7th Street, NW. Therein, law enforcement found five different firearms and the green and black backpack. Inside the backpack was a Zastava AK-Style with an extended magazine holding thirty .556 caliber live rounds and one live round in the chamber. Campbell was included in the DNA profile from the AK-Style pistol and the attached magazine.
This case was led by the FBI, with valuable support from the MPD. It was prosecuted by Assistant U.S. Attorney Sitara Witanachchi of the Violence Reduction and Trafficking Offenses Section in the U.S. Attorney’s Office for the District of Columbia with valuable assistance provided by former Assistant U.S. Attorney Andy Wang.
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Convicted smuggler heads to prison after second alien smuggling attemptRead the Press Release
LAREDO, Texas – A 39-year-old has been sentenced following another conviction for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
David Alberto Martinez, Laredo, pleaded guilty Oct. 12, 2023, to transporting and conspiring to transport undocumented non-citizens.
U.S. District Judge Marina Garcia Marmolejo has now ordered Martinez to serve a total of 42 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Martinez’s previous convictions for human smuggling.
On Aug. 4, 2023, Martinez drove a personal vehicle to the primary inspection lane at the Border Patrol (BP) checkpoint on Interstate Highway 35 north of Laredo. The vehicle contained eight occupants including Martinez, an undocumented citizen of Guatemala and five juvenile children not related to either Martinez or the others.
Martinez lied to authorities, stating the vehicle’s occupants were “all family,” attempting to pose as a familial unit to deceive law enforcement. One of the smuggled persons reported they had paid $8,500 to a human smuggling organization to be transported further into the United States.
Martinez’ prior conviction arose after law enforcement responded to a major accident in Duval County, during which the vehicle he used to transport 10 individuals had overturned. The crash ejected two of the occupants and an additional six others required emergency medical treatment and transportation to the hospital.
Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation. Special Assistant U.S. Attorney (AUSA) Terence A. Check Jr. and AUSA Brandon Scott Bowling prosecuted the case.
Connecticut Tax Return Preparer Sentenced to Prison for Fraud OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVID ETIENNE, 49, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by one year of supervised release, for a tax fraud offense.
According to court documents and statements made in court, Etienne operated as a tax return preparer in Norwich through several businesses, including Los Maestros Inc, Los Maestros Group, Tax Experts USA, and Tax Experts USA Inc. For the 2012 through 2021 tax years, Etienne prepared numerous federal tax returns for clients. The returns included false expenses and losses in connection with sole proprietorship businesses when he knew the taxpayers had not operated sole proprietorship businesses, false unreimbursed employee expenses, and, in certain instances, false medical, dental or education-related expenses. Etienne’s criminal conduct involved tax loss, affecting both the IRS and the Connecticut Department of Revenue Services, of approximately $600,000.
On September 5, 2023, Etienne pleaded guilty to aiding and assisting in the preparation of a false income tax return.
Etienne who is released on a $100,000 bond, is required to report to prison on February 28.
Restitution will be determined after additional court proceedings.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Lauren C. Clark.
Browning man admits assaulting elderly small business owner on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man accused of beating an elderly small business owner while demanding money admitted to an assault charge on Jan. 16, U.S. Attorney Jesse Laslovich said today.
Frederick Melvin Noon, Jr., 39, pleaded guilty to assault resulting in serious bodily injury. Noon faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 29. Noon was detained pending further proceedings.
In court documents, the government alleged that on March 21, 2023, Noon assaulted the victim, identified as John Doe, a small business owner who is in his 70s, while demanding money. Noon was intoxicated when he walked into the business and asked for money. At first, Doe refused, and Noon became progressively angrier. Doe eventually gave Noon a few one-dollar bills, but Noon was not satisfied. Noon wanted Doe to go into a storeroom for the “other money,” and Doe told him no. Noon grabbed Doe from a chair and threw him to the floor. Noon then grabbed Doe by the face and threw him into the back room. Noon took the money Doe had handed over and left. After the assault, Doe called for help and Blackfeet Law Enforcement Services officers responded. Officers arrested Noon about 20 minutes later at a convenience store. Doe was transported to a Blackfeet Hospital and then transferred to another hospital for treatment of injuries.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The Blackfeet Law Enforcement Services and Bureau of Indian Affairs conducted the investigation.
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Bronx, New York Man, Admits Role in Distributing Heroin and Fentanyl from Two Drug Mills in the Bronx, Causing the Death of 15-Month-Old ChildRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted distributing heroin and fentanyl into New Jersey from two drug mills in the Bronx, which resulted in the death of a 15-month-old child, U.S. Attorney Philip R. Sellinger announced.
Jhan Carlos Capellan Maldonado, 35, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a superseding information charging him with one count of distributing heroin and fentanyl from a drug mill in the Bronx in December 2018. Capellan Maldonado admitted that his distribution of fentanyl caused the death of a 15-month-old child.
Capellan Maldonado also pleaded guilty to one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl from a separate drug mill in the Bronx in February 2019. Six other individuals – Reimon Genao Rosario, 27; Dilson Vazquez Genao, 27; Eddie Urena Rodriguez, 39; Francisco Mercedes Gil, 35; Daury Contreras Ulerio, aka “Majimbou,” 38; and Jose Antonio Vazquez Pena, aka “Tono,” 51 – also of the Bronx, all have previously pleaded guilty to the same charge before Judge Salas.
U.S. Attorney Philip R. Sellinger“The defendant admitted organizing and running a drug distribution operation that prepared and packaged deadly fentanyl and heroin for sale in New Jersey. The defendant’s drug mill directly led to the death of a toddler who was present inside the apartment where this poison was being prepared for distribution. This defendant will now face justice for his role in leading this drug trafficking organization and for causing the death of this 15-month-old child. The fentanyl epidemic has caused enormous pain and suffering to our communities, including the death of the child in this case. This office is committed to combatting this scourge and holding accountable those who traffic in this poison.”
“The unimaginable tragedy caused by the actions of Jhan Carlos Capellan Maldonado is hard for anyone to fathom,” Homeland Security Investigations - Newark Acting Special Agent in Charge Michael Alfonso said. “The death of a toddler from fentanyl poisoning is heart-breaking and serves as a horrific reminder about the dangers illegal narcotics pose to our communities. HSI and our law enforcement partners remain dedicated to disrupting and dismantling drug trafficking organizations that seek profit at the cost of American lives.”
According to documents filed in this case and statements made in court:
On Dec. 27, 2018, Capellan Maldonado was operating a drug mill at an apartment in the Bronx where he employed four individuals to store, mix, and package heroin and fentanyl in quantities for distribution into New Jersey. Capellan Maldonado admitted that while the group was preparing the heroin and fentanyl, a 15-month-old child present in the apartment ingested some of the fentanyl and died as a result. The four other individuals have been charged with homicide by the District Attorney’s Office in the Bronx.
In early February 2019, law enforcement officers learned that Capellan Maldonado was again using an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, and all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Capellan Maldonado faces a maximum penalty of 20 years in prison and a $1 million fine on Count One of the superseding information. He faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine on Count Two of the superseding information. Sentencing is scheduled for June 24, 2024.
U.S. Attorney Sellinger credited special agents of HSI Newark, under the direction of Acting Special Agent in Charge Alfonso, and special agents of the Drug Enforcement Administration, New York Division, under the direction of Special Agent in Charge Frank Tarentino, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould, Chief of the Health Care Fraud Unit in Newark.
maldonado.sinformation.pdfArmed Methamphetamine Dealer Sentenced to 15 Years in Federal PrisonRead the Press Release
MOBILE, AL – A Mobile man was sentenced last week to 180 months in prison for conspiring to distribute methamphetamine and possessing firearms in furtherance of drug-trafficking crimes.
According to court documents, Clayton Eugene Brown, Jr., 43, was arrested on multiple occasions in November and December 2021 in possession of large amounts of methamphetamine and firearms. On November 3, 2021, sheriff’s deputies executed a search warrant at Brown’s apartment in Mobile, recovering 14 individually packaged baggies of pure methamphetamine weighing more than 382 grams. Near the drugs, deputies found two loaded pistols, one of which had previously been reported stolen in Moss Point, Mississippi. Brown admitted to deputies that the methamphetamine belonged to him. Two weeks later, on November 16, 2021, deputies executed another search warrant at Brown’s apartment. Brown fled as deputies entered to execute the warrant. Inside Brown’s apartment, deputies found two baggies of methamphetamine containing more than 272 grams of pure methamphetamine.
On December 7, 2021, deputies encountered Brown at a hotel in Mobile. When Brown noticed deputies in the parking lot of the hotel, he fled the area. Inside Brown’s hotel room, deputies found two baggies containing more than 582 grams of methamphetamine that had been cut with a cutting agent. Nearby the drugs, deputies found two loaded pistols and drug paraphernalia. Finally, on December 18, 2021, deputies saw Brown at a gas station in Mobile and arrested him as he attempted to flee. Inside Brown’s SUV, deputies found a loaded pistol and two baggies containing more than 37 grams of pure methamphetamine. Deputies seized and searched Brown’s cell phone, which contained numerous incriminating text messages, pictures, videos, drug ledgers, and other evidence of Brown’s drug-trafficking conspiracy.
In addition to the 180-month prison sentence, United States District Judge Kristi K. DuBose ordered Brown to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge DuBose ordered Brown to pay $200 in special assessments and forfeited Brown’s firearms to the United States.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
Homeland Security Investigations and the Mobile County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Arizona Man Appears in St. Louis Court to Answer Fraud ChargesRead the Press Release
ST. LOUIS – An Arizona car repair business owner pleaded not guilty Wednesday to charges that accuse him of defrauding at least four customers out of more than $500,000.
Andres “Manny” Lopez, 35, was indicted in U.S. District Court in St. Louis on Oct. 11, 2023, on two counts of wire fraud and one count of aggravated identity theft. He was arrested December 11 in Arizona and appeared in court in St. Louis Wednesday.
The indictment says Lopez ran All Performance Tuning and Diesel Repair LLC in Arizona but solicited customers across the country. The indictment alleges that Lopez defrauded at least four customers, including a Missouri man, out of more than $500,000 by falsely claiming that he would obtain cars for them at a discount and perform vehicle repairs and upgrades. After obtaining upfront payments, Lopez spent the money on personal expenses, the indictment says.
The Missouri victim wired Lopez $45,000 for a Toyota RAV4 for his mother. Lopez then repeatedly falsely claimed that he’d bought the vehicle and that it would to be delivered, the indictment says. The indictment also alleges that Lopez impersonated the general manager of a Florida Toyota dealership in text messages to the client’s mother, falsely claiming that delivery delays were due to recall issues.
The wire fraud charge is punishable by up to 20 years in prison, a $250,000 fine, or both. The aggravated identity theft charge is punishable by two years in prison, consecutive to any other sentence, a $250,000 fine, or both prison and a fine.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
AmeriHealth Clinics Consent to a $2 Million Judgment to Resolve Healthcare Fraud AllegationsRead the Press Release
BOISE – AmeriHealth and its owners, Ryan and Alban Hatch, consented to a $2 million judgment against them in U.S. District Court after admitting to violations of the False Claims Act, announced U.S. Attorney Josh Hurwit today. The fraud scheme involved using vulnerable or inexperienced medical staff to submit or cause to be submitted false claims to federal health care programs like Medicare, Medicaid, and Tricare. Through the agreement to pay $2 million, the defendants also resolved, without admitting, additional allegations that they violated the Controlled Substances Act, the Anti-Kickback Statute, and fraudulently obtained Paycheck Protection Program (PPP) loans.
According to a Complaint filed by the United States in December 2023, AmeriHealth hired vulnerable, compromised, and inexperienced medical staff who were then pressured into providing unnecessary and worthless care, which resulted in false claims being submitted to federal health care programs. For example, owners Ryan and Alban Hatch ordered a hungover and impaired practitioner to provide medical care to unsuspecting patients. The Complaint also alleged that they pressured practitioners to prescribe controlled substances, entered into an unlawful kickback scheme with a third-party laboratory, and falsely certified information in order to obtain forgiveness of a PPP loan worth more than $750,000.
“Fighting health care fraud is about ensuring safety for patients and families as well as protecting taxpayer funds,” said U.S. Attorney Hurwit. “That’s why health care fraud enforcement has been, and will continue to be, a priority for my office. We will not tolerate individuals and companies sacrificing public safety through fraudulent schemes or illegal practices.”
“Providers who cheat federal health care programs and put financial gain before the needs of patients must be rooted out at every turn,” said Steven J. Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to address this kind of abuse, and will not stop protecting American patients, communities, and taxpayers from such conduct.”
“This settlement demonstrates that OIG will bring individuals to justice that knowingly provided false information to gain access to the Paycheck Protection Program and subsequent loan forgiveness,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “I want to thank the Department of Justice and our law enforcement partners for their collaboration, support, and pursuit of justice for taxpayers.”
This matter was investigated jointly by the U.S. Attorney’s Office for the District of Idaho, the U.S. Department of Health and Human Services, Office of the Inspector General, the Small Business Administration, and the Drug Enforcement Administration. Additional assistance was provided by the Idaho Board of Pharmacy, the Idaho State Department of Health and Welfare, and the Idaho Division of Occupational and Professional Licenses.
For additional case information and publicly available court documents, see United States v. Hatch, et. al., 23-CV-00566-DKG (U.S. District Court for the District of Idaho).
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Activity in the U.S. Attorney's OfficeRead the Press Release
Firearms Offenses
Warren Larose, age 40, of Riverton, Wyoming, was sentenced to two years of supervised probation for being a felon in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 20, 2023, in Cheyenne. According to court documents, on Mar. 12, 2023, Larose pointed a gun at an adult and a minor. The victims were in a vehicle outside of their residence and provided video evidence to the Riverton Police Department. Larose is a previously convicted felon. This crime was investigated by the FBI and Wyoming Division of Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Michael J. Elmore.
Hedoduyehpua “Hedo” Thayer, age 44, of Fort Washakie, Wyoming, was sentenced to 60 months’ imprisonment for being a felon in possession of firearms. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 21, 2023, in Cheyenne. According to court documents, on Aug. 11, 2022, during execution of a search warrant on Thayer’s residence, agents observed multiple firearms in plain view. Thayer is prohibited from possessing a firearm because he is a previously convicted felon. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Michael J. Elmore.
Lorenzo Roman, age 30, of Riverton, Wyoming, was sentenced to 36 months in prison for being a felon in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 11. According to court documents, on Apr. 20, 2023, the Bureau of Indian Affairs (BIA) police were dispatched to a truck parked in the roadway with a male sleeping in the driver's seat. BIA agents attempted to wake Roman, who became non-compliant. Roman was combative and was subsequently arrested. In the truck, within reach of Roman, BIA located a loaded Ruger .380 pistol
with an obliterated serial number. The case was investigated by the BIA and FBI and prosecuted by Assistant U.S. Attorney Michael J. Elmore.
Jason Myhre, age 40, of Casper, Wyoming, was sentenced to 72 months’ imprisonment for being a felon in possession of a firearm. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Jan. 2. According to court documents, on Sep. 26, 2022, Myhre was stopped after eluding police. A firearm were recovered from the vehicle. Myhre, who is a previously convicted felon prohibited from possessing firearms, admitted to knowing the firearm was in the vehicle and handling it. This crime was investigated by the FBI, Wyoming Division of Criminal Investigation, Fremont County Sheriff’s Office, and the Riverton Police Department. The case was prosecuted by Assistant U.S. Attorney Timothy W. Gist.
Charles Wheeler, age 54, of Bend, Oregon, was sentenced to 12 months and one day in prison for being a felon in possession of firearms. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 9. According to court documents, on Feb. 28, 2023, Sublette County Sheriff's Office (SCSO) located a firearm on the driver's seat of a vehicle where Wheeler was sitting. Wheeler has extensive criminal history and is a convicted felon prohibited from possessing firearms. This crime was investigated by the FBI and SCSO. The case was prosecuted by Assistant U.S. Attorney Christyne M. Martens.
Drug Trafficking
Matthew Lucas Armijo a/k/a Matcalf Chapo, age 40, of Casper, Wyoming, was sentenced to 151 months in prison for possession with intent to distribute methamphetamine and fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 20, 2023. According to court documents, a months-long investigation into Armijo and his girlfriend Christina Carmona for drug trafficking came to an end when a traffic stop resulted in the seizure of 344 grams of fentanyl and 436 grams of methamphetamine. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Christina Marie Carmona, age 39, of Bar Nunn, Wyoming, was sentenced to 130 months in prison for possession with intent to distribute methamphetamine and fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 8. According to court documents, a monthslong investigation into Matthew Armijo and Carmona for drug trafficking came to an end when a traffic stop resulted in the seizure of 344 grams of fentanyl and 436 grams of methamphetamine. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Daniel Ellis, age 41, of Cheyenne, Wyoming, was sentenced to 63 months in prison for possession with intent to distribute fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 4. This crime was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Drug & Firearm Offenses
Shawn Hoffman, age 47, of Casper, Wyoming, was sentenced to 21 months’ imprisonment for being a felon and unlawful user of a controlled substance in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 4. According to court documents, on Oct. 27, 2022, Casper Police officers conducted a traffic stop on the defendant. Hoffman admitted there was a firearm on his person and that he was a convicted felon. This crime was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Casper Police Department. The case was prosecuted by Assistant U.S. Attorney Jonathan C. Coppom.
Joshua Keele, age 38, of Riverton, Wyoming, was sentenced to 90 months’ imprisonment for being a felon in possession of a firearm and conspiracy to distribute methamphetamine and fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 21, 2023 in Cheyenne. According to court documents, on Apr. 27, 2023, agents executed a search warrant at the defendant’s residence and recovered fentanyl, methamphetamine, marijuana, cocaine, and a firearm. Keele is a previously convicted felon. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Timothy W. Gist.
Jacquel Starnes, age 40, of Riverton, Wyoming, was sentenced to 63 months’ imprisonment for possession with intent to distribute methamphetamine and being an unlawful user and person previously convicted of a misdemeanor domestic violence offense in possession of a firearm. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Jan. 3. According to court documents, a search warrant was executed at Starnes’ residence. Approximately 380 grams of methamphetamine, 166 grams of MDMA and multiple firearms were recovered. The defendant admitted to selling methamphetamine in a subsequent interview and admitted the “sawed off shotgun” was his. This crime was investigated by the Wyoming Division of Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Timothy W. Gist.
Jesse Walthers, age 40, of Gillette, Wyoming, was sentenced to 21 months’ imprisonment for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Chief U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 12 in Cheyenne. According to court documents, on Jun. 30, 2023, Wyoming Highway Patrol conducted a traffic stop on the defendant. Knowing he was a previously convicted felon, officers observed narcotics, firearms and ammunition in the vehicle. This crime was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and Campbell County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jonathan C. Coppom.
Sex Offenses
Bryon Good Voice Elk, age 35, of Riverton, Wyoming, was sentenced to 18 months in prison for failing to register as a sex offender. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 18, 2023. The defendant was required by a court order to register with the Wind River Sex Offender Registration & Notification Act office personnel as well as Wyoming Department of Criminal Investigation, but failed to do so. The case was prosecuted by Assistant U.S. Attorney Timothy W. Gist.
Motor Vehicle Theft
Steffan Kytonen, age 36, of Minnesota, was sentenced to 46 months’ imprisonment for theft of property. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 9. According to court documents, the defendant stole a 2000 Chevy Silverado from a parking lot near the Old Faithful Lodge in Yellowstone National Park. Rangers found him approximately 57 miles away in Grand Teton National Park. The crime was investigated by the National Park Service and the case was prosecuted by Assistant U.S. Attorney Nicole M. Romine.
Illegal Re-entry of a Previously Deported Alien
Lino M. Quintanna-Morales, age 37, of Mexico, was sentenced to eight months in federal prison for illegal re-entry of a previously deported alien into the United States. The defendant will be deported to Mexico upon his release. According to court documents, the defendant was arrested for driving under the influence of alcohol in Laramie County, Wyoming. He admitted to being a citizen of Mexico and the U.S. Immigration and Customs Enforcement verified that he had been previously deported four separate times. The case was prosecuted by Assistant U.S. Attorney Michael J. Elmore. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Jan. 3.
Luis EdgardoGomez-Barahona, age 37 of Honduras, was sentenced to time served for illegal re-entry of a previously deported alien into the United States. The defendant will be deported within 10 days to Honduras. According to court documents, the defendant was arrested for driving under the influence of alcohol in Converse County, Wyoming. The U.S. Immigration and Customs Enforcement verified that he had been previously detained and deported. The case was prosecuted by Assistant U.S. Attorney Cameron Cook. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 12.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
16 January 2024
Virginia Man Is Sentenced to 17.5 Years for Traveling to North Carolina to Engage in Sexual Activity with A MinorRead the Press Release
ASHEVILLE, N.C. – Today, James Edward Whisenant, Jr., 50, of Suffolk, Virginia, was sentenced to 210 months in prison followed by a lifetime of supervised release for traveling to Western North Carolina to engage in illicit sexual conduct, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Whisenant to register as a sex offender after he is released from prison and to pay restitution in the amount of $39,500.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina joins U.S. Attorney King in making today's announcement.
According to court documents and court proceedings, in March 2022, Whisenant began communicating with undercover agents expressing an interest in engaging in illicit sexual acts with a minor female child. On May 27, 2022, Whisenant traveled from his home in Virginia to the Western District of North Carolina for the purpose of engaging in sexual acts with a female toddler and was subsequently arrested. Law enforcement conduced a forensic analysis of Whisenant’s electronic items seized as part of the investigation and recovered hundreds of images and videos containing child pornography.
On November 30, 2022, Whisenant pleaded guilty to travel with intent to engage in illicit sexual conduct.
U.S. Attorney King credited HSI with the investigation leading to today’s sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Venice Man Admits to Arson for Hire of St. Louis Apartment, Conspiring to Burn Additional Illinois Properties for Insurance MoneyRead the Press Release
EAST ST. LOUIS, Ill. – A man from Venice, Illinois, admitted guilt in federal court Thursday for his involvement in a scheme to commit arson on residential properties and collect fraudulent insurance benefits.
Rufis A. Jefferson, 47, pleaded guilty to 14 federal felony charges: one count of conspiracy to commit mail and wire fraud, two counts of mail fraud, 10 counts of wire fraud, and one count of conspiracy to commit arson.
“Under federal law, intentionally igniting residential buildings to file insurance claims for the damages and collect benefits is committing fraud, and law enforcement is working to prosecute offenders of these hazardous crimes,” said U.S. Attorney Rachelle Aud Crowe.
According to court documents, Jefferson admitted to being paid off by a family member to burn her St. Louis apartment on December 31, 2022, so that she could collect insurance money. In addition to the New Years Eve fire at Spanish Lake Apartments, Jefferson admitted to conspiring with this relative to burn two additional buildings in Granite City and Venice. An ATF confidential informant recorded many of the planning conversations and these Illinois buildings were not burned. The relative’s insurer is estimated to have paid out more than $30,000 for the St. Louis apartment fire.
Evette B. Osuegbu, 61, of Granite City, is also charged in the indictment and facing accusations for committing the same 14 federal crimes.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
“Arson is a dangerous act of violence,” said Special Agent in Charge Bernard Hansen, Kansas City Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “Arson poses a great threat to public safety. ATF works diligently to secure public safety. This guilty plea will send a message to anyone who considers conducting these types of violent acts that they will not be tolerated. ATF will continue to work alongside our law enforcement partners to ensure that your community remains a safe place.”
Jefferson’s sentencing hearing is scheduled for April 25, 2024. His charges are punishable by up to 20 years’ imprisonment per count.
ATF led the investigation, and Assistant U.S. Attorneys Kevin Burke and Zoe Gross are prosecuting the case.
U.S. Attorney Charges Two Men with Firebombing A Mount Kisco Residence and Conspiring to Stalk A Westchester BusinessmanRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); Bryan DiGirolamo, the Assistant Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco and Firearms (“ATF”); Melvin Padilla, the Chief of the Bedford Police Department; and Terrance Raynor, the Acting Commissioner of the Westchester County Department of Public Safety, announced that DAMJAN STANIVUKOVIC and VLADAMIR RADUNOVIC were arrested on January 13, 2024, and each charged with one count of unlawful possession of a destructive device and one count of conspiracy to commit stalking. The Complaint charges that on or about January 11, 2024, the defendants transported a homemade destructive device to a neighborhood in Mount Kisco, New York, and dropped the destructive device off in the driveway of the victim’s residence, where it exploded. In addition, the Complaint charges that later that same day, as part of the conspiracy, the victim received a text message that this was his “final warning.” STANIVUKOVIC, the owner of a contracting company, is involved in a long-running legal dispute with the victim. When searching STANIVUKOVIC’s residence, law enforcement seized, among other things, multiple loaded firearms, items matching those used to make the destructive device, and written instructions on how to make explosives. The defendants were presented on January 13, 2024, before U.S. Magistrate Judge Victoria Reznik and detained without bail.
U.S. Attorney Damian William said: “The career prosecutors of this Office and our law enforcement partners stand ready to act around the clock when our communities are threatened. Damjan Stanivukovic and Vladamir Radunovic were in custody just two days after they allegedly planted a destructive device in the driveway of the victim’s residence. This case is a testament to the critical and effective work that our interagency collaborations accomplish on a daily basis. We have no tolerance for violence in the Southern District of New York.”
FBI Assistant Director in Charge James Smith said: “Damjan Stanivukovic and Vladamir Radunovic allegedly tried to resolve a contentious business relationship with threats of violence and a homemade bomb. While business deals aren’t always successful, neither are overt acts of violence that bring forth federal charges. Thankfully, in this case, no one was injured. The FBI will continue to ensure that anyone willing to solve personal grievances with threats and attempts of violence are punished to the fullest extent in the criminal justice system.”
ATF Assistant Special Agent in Charge Bryan DiGirolamo said: “Perpetuating violence against others, under any context, is unacceptable behavior. The men and women of ATF NY Hudson Valley Field Office will continue to work alongside our partners at FBI and Bedford Police to address acts of violence in our communities.”
Bedford Police Chief Melvin Padilla said: “The safety and security of our residents is our primary focus, and thanks to the diligent work of our detectives and the cooperation and assistance from our federal partners, the defendants were quickly identified and apprehended.”
Westchester County Department of Public Safety Acting Commissioner Terrance Raynor said: “I commend all the agencies involved for their skillful and effective collaboration in bringing this investigation to a swift conclusion. This is yet another example of the value and importance of multi-agency partnerships, which help us keep Westchester safe.”
As alleged in the criminal Complaint:[1]
At approximately 5:11 a.m. on or about January 11, 2024, STANIVUKOVIC and RADUNOVIC traveled through Rockland County, New York, to Westchester County, New York, in a black Jeep Grand Cherokee and dropped a destructive device off at the victim’s residence in Mount Kisco, New York, where the destructive device exploded. Law enforcement recovered a box from the scene, which bore STANIVUKOVIC’s name and address, as well as a 2.5-gallon gasoline can, firework tubing, and firework residue.
Later that day, on or about 12:11 p.m., the victim received a text message from a particular phone number, which stated “Knock knock, show up and what do you think is next. This is your final warning.” Around the time that text message was sent, the cellphone associated with that particular phone number was located in the vicinity of STANIVUKOVIC’s business address and the black Jeep Grand Cherokee.
A search warrant executed at STANIVUKOVIC’s residence, where RADUNOVIC had been staying, recovered, among other things, gasoline canisters and fireworks matching those used to construct the destructive device, multiple loaded firearms, and a book titled “Make Fireworks and Explosives at Home – The Ultimate Instruction Manual for Beginners and Pyrotechnicians to Build Firecrackers, Fireworks and Explosives from Scratch.”
* * *
DAMJAN STANIVUKOVIC, 52, of Closter, New Jersey, and VLADAMIR RADUNOVIC, 47, of Pompton Lakes, New Jersey, are each charged with one count of unlawful possession of a destructive device, which carries a maximum sentence of 10 years in prison, and one count of conspiracy to commit stalking, which carries a maximum sentence of five years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI’s Westchester Safe Streets Task Force, the ATF, the Bedford Police Department, the Westchester County Department of Public Safety, and the Closter, New Jersey Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Kathryn Wheelock is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney Announces 30-Count Indictment Charging Garment-Manufacturing Executive with Tax Fraud Scheme, Masking Millions in PayrollRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging AI ZHEN XU with criminal tax offenses. XU was the vice president and secretary of the garment-manufacturing company Winner Fashions, Inc. (“Winner Fashions”). XU is alleged to have conspired to perpetrate a long-running scheme to conceal more than approximately $3,800,000 in gross receipts attributable to Winner Fashions and to evade more than approximately $290,000 in federal payroll taxes owed by Winner Fashions to the Internal Revenue Service (“IRS”). XU was arrested this morning and will be presented before U.S. Magistrate Judge Katharine H. Parker this afternoon. The case is assigned to U.S. District Judge Mary Kay Vyskocil.
U.S. Attorney Damian Williams said: “For at least six years, Ai Zhen Xu allegedly engaged in a scheme by which she used the off-the-books services of a check-cashing business to conceal nearly $4 million in gross receipts paid to her company and evade payroll taxes. Thanks to the skillful investigative work of IRS-CI and the career prosecutors of this Office, the defendant will be held accountable for her actions.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “It’s alleged Xu concealed millions to avoid paying the federal taxes that every legitimate business pays. This is not a victimless crime. While this failure to pay business taxes further widens the American tax gap, every other taxpayer is now responsible to cover the cost. Xu’s alleged willful disregard for U.S. law has prompted this arrest, and she will now pay the price for her actions.”
According to the allegations in the Indictment:[1]
From 2016 through at least 2021, XU and others used the services of a check‑cashing business to cash checks issued to Winner Fashions as payment for its services. XU concealed this cash revenue from Winner Fashions’ accountant, resulting in Winner Fashions’ relevant tax filings omitting substantial amounts of gross receipts.
During the same period, XU and others paid Winner Fashions’ employees via a combination of cash payments and payroll checks generated by Winner Fashions’ accountant. XU concealed these cash payments from Winner Fashions’ accountant, resulting in Winner Fashions failing to pay to the IRS payroll taxes associated with these unreported cash payments.
* * *
XU, 70, of Port Washington, New York, is charged with one count of conspiracy to defraud the IRS, which carries a maximum sentence of five years in prison. XU is also charged with 23 counts of failure to collect, account for, and pay over payroll taxes, each of which also carries a maximum sentence of five years in prison, and six counts of aiding and assisting the preparation and presentation of false U.S. corporation income tax returns, each of which carries a maximum sentence of three years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of IRS-CI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Benjamin M. Burkett is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Arrested for Allegedly Trafficking More Than Two Dozen Illegal Firearms into BostonRead the Press Release
BOSTON – Two men have been arrested for allegedly conspiring to traffic dozens of illegal firearms from South Carolina to Boston.
Aizavier Roache, 30, of Boston and Trevon Brunson, 31, of Columbia, S.C., were charged with one count of firearms trafficking and conspiracy to do so. Roache was arrested in Boston on Jan. 5, 2024 and was ordered detained following a hearing on Jan. 12, 2024. Brunson was arrested in Columbia, S.C. on Jan. 9, 2024 and appeared in federal court in the District of South Carolina on Jan. 10, 2024. He will appear in federal court in Boston at a later date.
“Over the course of several years, these defendants allegedly trafficked dozens of illegal firearms many of which ended up on the streets of our communities – 11 of those guns, it is alleged, were involved in criminal activity and have since been recovered,” said Acting United States Attorney Joshua S. Levy. “The unchecked flow of weapons amplifies violence, empowers criminals and puts innocent lives at risk. Our office is committed to working with ATF, FBI and local partners like the Boston Police to aggressively investigate the origin of every gun used in crime and hold accountable the people who import illegal guns into Massachusetts.”
“This alleged illegal activity will not be tolerated, and ATF will continue to aggressively target firearms traffickers” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. “ATF and our law enforcement partners will continue to work nonstop to prevent guns from being trafficked into our communities and protect citizens from gun violence.”
According to the charging documents, this case arose after a firearm recovered from a shooting in Boston was identified as having been purchased in South Carolina 15 days prior. It is alleged that over a three-year period, Brunson and Roache conspired to traffic dozens of illegal firearms from South Carolina to Massachusetts. Specifically, it is alleged that Roache would text Brunson photos of the firearms he wanted. The two would then meet and Roache would provide Brunson with the cash to purchase the firearms. After purchasing the firearms in South Carolina, Brunson would allegedly meet Roache at different locations in Columbia, S.C. to transfer the firearms. It is alleged that Roache traveled between Massachusetts and South Carolina numerous times to obtain the firearms.
According to the charging documents, numerous text messages as well as bank, travel and firearm records detailed the alleged conspiracy. Intercepted communications allegedly uncovered an instance were Brunson used Roache’s credit card to complete a multi-gun purchase because he didn’t have enough cash on hand, with Roache texting Brunson the pin number for the card during the transaction. It is further alleged that a video recovered from Roache’s phone depicts him on a bus showing off a carry-on bag that contained four firearms. The date of the video allegedly corresponds with Roache’s trip back to Massachusetts after a multi-gun purchase in April of 2023.
In total, it is alleged that the defendants trafficked more than 24 illegal firearms into Massachusetts from South Carolina. It is further alleged that 11 of the trafficked firearms were recovered here in Massachusetts after being used in a crime.
The charge of firearms trafficking provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, ATF SAC Ferguson and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tessa M. Gorman sworn in as U.S. Attorney, Western District of WashingtonRead the Press Release
Seattle – After serving six months as Acting U.S. Attorney, Tessa Gorman was sworn in today as U.S. Attorney, following her appointment to the post by U.S. Attorney General Merrick B. Garland. The appointment comports with the Federal Vacancies Reform Act of 1998. Chief U.S. District Judge David G. Estudillo administered the oath of office.
U.S. Attorney Gorman also issued the 2023 Report to the Community, highlighting the work of the U.S. Attorney’s Office in 2023. The report is linked below.
2023_final_report_to_the_community_1-16-2024.pdf..
Tangipahoa Man Sentenced for Dealing Firearms Without a LicenseRead the Press Release
NEW ORLEANS, LOUISIANA – RICHARD LUDWIG II, age 74, a resident of Independence, La. was sentenced on January 9, 2024, by U.S. District Judge Greg G. Guidry, after previously pleading guilty to three counts of dealing a firearm without a license, to 36 months of probation, 12 months of home incarceration, a $5000 fine, and a mandatory $300 special assessment fee.
Counts One through Three charged LUDWIG with dealing in firearms without a license, in violation of Title 18, United States Code, Sections 922(a)(1)(A) and 924(a)(1)(D).
According to court records, in December 2020, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Agents began investigating LUDWIG for selling firearms without a license. LUDWIG operated Tickfaw Guns, in Independence, La. and maintained a website advertising himself as a duly licensed Federal Firearms Licensee (F.F.L.). In reality, LUDWIG failed to renew his federal license to sell firearms. ATF agents also received information that LUDWIG sold guns to persons prohibited from possessing such, and that some of these guns had been recovered from various crime scenes.
During their investigation, ATF agents witnessed LUDWIG selling firearms at a gun show in Mississippi on August 21, 2021. LUDWIG admitted to the agents that he had 400 guns to sell. Subsequently, in October 2021, undercover ATF agents purchased firearms and ammunition from LUDWIG twice.
On December 01, 2021, ATF executed a search warrant for LUDWIG’s gun shop and seized 237 firearms, consisting of handguns, long guns, and shotguns, $21,476, cellular telephones, computers, and assorted financial documents. Agents also seized financial documents from LUDWIG’s bank account. The $21,476 represented LUDWIG’s profit from unlicensed firearms sales. LUDWIG used the seized computers and financial documents, to maintain his illegal gun selling operation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. This case was prosecuted by Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit.
Springfield Rapper Pleads Guilty to Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who was part of a local rap group pleaded guilty in federal court today to illegally possessing firearms.
Ezekiel Josiah King, 20, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of being an unlawful user of a controlled substance in possession of firearms.
Co-defendant Jardell Carlin Williams, 20, pleaded guilty on May 16, 2023, to two counts of being an unlawful user of a controlled substance in possession of firearms.
By pleading guilty today, King admitted he was in possession of a loaded Glock .45-caliber semi-automatic pistol, with an extended magazine that contained 29 rounds, and an Anderson AM-15 multi-caliber rifle, loaded with 31 rounds of .223-caliber ammunition, on Feb. 15, 2022. King was driving a gold Nissan Altima that was stopped by Springfield police detectives. In addition to the firearms, detectives found another extended magazine and two factory Glock magazines under the driver’s seat.
Williams, a passenger in the vehicle, admitted he was in possession of a Glock .40-caliber semi-automatic pistol. Detectives also located two more boxes of ammunition in the front floorboard.
Williams also admitted that he was in possession of a C3 Defense 5.56-caliber semi-automatic pistol when a vehicle, in which he was a passenger, was stopped by law enforcement on Oct. 22, 2022. The C3 Defense AR-style pistol was tentatively identified as being used in three shooting incidents in the Kansas City, Mo., and Kansas City, Kansas, areas.
Both King and Williams admitted they regularly smoked marijuana.
Under federal statutes, King is subject to a sentence of up to 10 years in federal prison without parole. Williams is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
A sentencing hearing for Williams is scheduled on Feb. 5, 2024. King’s sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Greene County, Mo., Sheriff’s Department and the Springfield, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Southern Oregon Hospital System and Physician Agree to Pay $430,000 to Settle Health Care Fraud AllegationsRead the Press Release
PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that Asante Health System, a southern Oregon healthcare corporation, and one of its physicians, have agreed to pay $430,000 to settle allegations that the company and its physician knowingly submitted false claims for payment for certain cardiothoracic surgeries to Medicare, Medicaid, and TRICARE.
The United States contends that, between January 1, 2015, and January 31, 2021, Asante and Dr. Charles Carmeci, a cardiothoracic surgeon practicing at Asante Rogue Regional Medical Center, knowingly submitted claims for payment to Medicare, Medicaid, and TRICARE for cardiothoracic surgeries including decortications, PleurX catheter placements, pericardiectomies, mediastinal mass resections, patent foramen ovale, atrial septal defect closures, and Bentall procedures, knowing they did not meet the criteria for reimbursement or were otherwise improper.
Medicare and Medicaid are public health insurance programs administered by the Centers for Medicare & Medicaid Services, a federal agency within the U.S. Department of Health and Human Services (HHS). TRICARE is a civilian health care program administered by the Defense Health Agency (DHA), a joint, integrated combat support agency within the U.S. Department of Defense (DOD).
The settlement reached is not an admission of liability by Asante or Dr. Carmeci and both parties deny the government’s allegations.
This case was investigated by the HHS Office of Inspector General (HHS-OIG), FBI, and DHA. Both agencies were represented in this matter by Alexis Lien, Assistant U.S. Attorney for the District of Oregon. Lisa M. Re, Assistant Inspector General for Legal Affairs for HHS-OIG, and Salvatore M. Maida, General Counsel for DHA assisted in this litigation.
Six Individuals Charged in Connection with $7.5 Million Multi-State PPP Fraud SchemeRead the Press Release
BOSTON – Six individuals, including three from Massachusetts, have been charged in connection with their alleged involvement in a multi-state scheme to obtain millions of dollars in Paycheck Protection Program (PPP) funds for themselves, and others, through the submission of dozens of fraudulent applications to PPP lenders.
The following individuals have been charged by an Information with, and have agreed to plead guilty to, conspiracy to commit wire fraud and conspiracy to commit unlawful monetary transactions:
- Wallace Ford, 38, of Buford, Ga.;
- Adiana Pierre, 39, of Lookout Mountain, Tenn.;
- Gardy Alexandre, 51, of West Palm Beach, Fla.;
- Richardson Rhau, 49, of Brockton, Mass.; and
- Wens Herby Mathurin, 26, of Brockton, Mass.
Plea hearings have not yet been scheduled by the court.
Bill Dessaps, 46, of South Easton, Mass., has been indicted separately on one count of conspiracy to commit wire fraud, one count of money laundering and one count of bank fraud.
According to the charging documents, Ford, Pierre and Alexandre conspired to submit fraudulent PPP applications on behalf of numerous actual or purported businesses and non-profit organizations – including businesses operated by Mathurin and Dessaps – and to collect kickback payments from the borrowers for securing loan amounts.
It is alleged that, shortly after PPP funds first became available in April 2020, Ford began submitting PPP applications on behalf of his own businesses, Pierre, Alexandre and other borrowers. Pierre, Alexandre, and others allegedly identified potential applicants and provided those applicants’ information to Ford. Ford then submitted applications for those borrowers online, fabricating how many employees worked for the businesses and those business’ monthly payroll expenses, facts that determined the size of a loan that a business could receive. Ford also allegedly submitted false wage and tax forms in support of the misrepresentations on the applications. As a result, between May and August 2020, Ford, Pierre, Alexandre and others obtained approximately $7 million in PPP funds to which they were not entitled.
It is further alleged that the borrowers who received PPP funds based on these fraudulent applications paid kickbacks to Ford, Pierre, Alexandre and others, commonly in amounts equal to 10 or 20 percent of the loan amount they received. Collectively, Ford, Pierre and Alexandre allegedly received over $1 million in kickback payments from borrowers.
The charging documents allege that, in June 2020, Rhau connected Alexandre with both Dessaps – the operator of an Abington-based used car dealership, who was then living in Bridgewater – and Mathurin – the purported operator of a warehouse and cargo delivery business living in Brockton. It is alleged that Alexandre then forwarded information about Dessaps’ and Mathurin’s businesses to Ford, who submitted fraudulent PPP applications to a lender on their behalf. Specifically, the application for Dessaps’ dealership falsely stated that the dealership had 40 employees and average monthly payroll expenses of $334,720. The application for Mathurin’s business falsely stated that the business had 25 employees and average monthly payroll expenses of $125,541. As a result of the applications, it is alleged that the lender disbursed a PPP loan of $836,800 to Dessaps and a PPP loan of $313,852 to Mathurin.
After receiving these funds, both Dessaps and Mathurin allegedly made kickback payments to Alexandre. Mathurin also allegedly sent additional payments totaling $45,000 to Rhau.
The charging documents also allege that Rhau fraudulently obtained $104,166 in PPP funds and $94,800 in other pandemic relief funds as a result of applications containing misrepresentations that he submitted to lenders between April 2020 and April 2021, and that Dessaps attempted to obtain a “Second Draw” PPP loan through another fraudulent application in March 2021.
The charges of conspiracy to commit wire fraud and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charges of conspiracy to commit unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000, or twice the value of the criminally derived property. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount of money involved in the laundering transaction. The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, and a fine of $1,000,000, or twice the gross gain or loss from the scheme, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit and Assistant U.S. Attorney Alexandra W. Amrhein of the Asset Recovery Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Senior Operations Executive Pleads Guilty to Defrauding International Cargo Airline EmployerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea today of CARLTON LLEWELLYN in connection with a massive scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of tens of millions of dollars in revenue and the honest services of its employees. LLEWELLYN pled guilty today to conspiracy to commit wire fraud before U.S. District Judge Jesse M. Furman.
U.S. Attorney Damian Williams said: “Carlton Llewellyn was a senior executive entrusted with running the operations of a leading cargo airline. He betrayed that trust and engaged in a kickback scheme to defraud his employer and enrich himself, and his plea is another step toward rooting out corporate fraud.”
According to the allegations contained in the Indictment and statements made in public filings and public court proceedings:
From at least in or about 2009 through in or about July 2021, LLEWELLYN and nine other individuals participated in a massive scheme to defraud Polar. At all relevant times, LLEWELLYN and three co-defendants were senior executives of Polar (the “Executive Defendants”), and six co-defendants (the “Vendor Defendants”) owned and operated various Polar vendors and customers. LLEWELLYN was the Vice President of Operations, System Performance, and Quality for Polar.
The Executive Defendants agreed to accept millions of dollars in kickbacks from the Vendor Defendants and reaped substantial financial benefits as a result of their secret ownership interests in certain Polar vendors, in exchange for ensuring that those vendors received favorable business arrangements with Polar. The fraud they perpetrated, which involved a substantial portion of Polar’s senior management and at least 10 customers and vendors of Polar, led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations, for over a decade.
As a result of the scheme, the Executive Defendants, along with two co-conspirators who also worked as senior executives at Polar, received unlawful payments either directly or through various limited liability companies they controlled in excess of approximately $23 million in kickback payments or disbursements as a result of their ownership of conflicted companies.
LLEWELLYN is the sixth defendant to plead guilty in the case thus far.
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LLEWELLYN, 55, of Highland Mills, New York, pled guilty to one count of conspiring to commit wire fraud, which carries a maximum sentence of five years in prison. LLEWELLYN also agreed to pay forfeiture in the amount of $347,879.44 and make restitution to Polar in the amount of $305,800. LLEWELLYN is scheduled to be sentenced by Judge Furman on May 7, 2024.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Katherine Reilly, Danielle Kudla, Kevin Mead, and Qais Ghafary are in charge of the prosecution.
Schuele Boy going to prison for 18 years for racketeering conspiracyRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Roderick Arrington, a/k/a Ra-Ra, 42, of Buffalo, NY, who was convicted of racketeering conspiracy, was sentenced to serve 216 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that Roderick was a member of the Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo. The Schuele Boys Gang was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana.
The sentencing is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division; and the New York State Police, under the direction of Major Eugene Staniszewski.
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Richmond clinic owners agree to settle allegations regarding acupuncture devicesRead the Press Release
HOUSTON – The owners of a Richmond clinic have agreed to pay a total of up to $108,000 to settle allegations they submitted false claims, announced U.S. Attorney Alamdar S. Hamdani.
Ijeoma Bethel, 43, Sugar Land, Yvonne Hernandez, 41, Houston, and Nick Bryant Villegas, 43, Pearland, are the owners of Texas Wellness Clinic PLLC in Richmond. Bethel and Villegas are nurse practitioners and Hernandez is a chiropractor.
From Jan. 27, 2016, to Sept. 16, 2020, Bethel, Villegas, Hernandez and Texas Wellness Clinic billed Medicare for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring the use of an operating room. Medicare pays thousands of dollars per procedure.
However, the government alleged that no surgery was involved. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind the ears with an adhesive.
In addition to the financial settlement, Texas Wellness Clinic agreed to a five-year-period of exclusion from participation in any federal health care programs.
Campbell Medical Clinic in Houston previously employed Bethel, Villegas and Hernandez before they decided to open Texas Wellness Clinic—where they continued to improperly bill Medicare. The owner of Campbell Medical Clinic, chiropractor Suhyun An, previously agreed to a $2.6 million settlement and a 10-year exclusion from federal health care programs. The claims resolved are allegations only, and there has not been an admission of wrongdoing.
To date, this is the 11th case the Southern District of Texas has resolved for similar conduct. In addition to the settlement with An, the other matters included settlements with a Katy anesthesiologist, Houston pain doctor, Rockport chiropractor, Laredo pain doctor, The Woodlands pain doctor, Cypress marketing representative, Ohio coding consultant, and two separate settlements (linked here and here) with Cypress podiatrists.
The Department of Health and Human Services – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Rensselaer Man Sentenced to 17 Years for Two Capital Region Armed Bank RobberiesRead the Press Release
ALBANY, NEW YORK – Ulysses Jessie Walls, a/k/a “Guwala,” age 30, of Rensselaer, New York, was sentenced today to serve 204 months in federal prison for two 2019 armed bank robberies.
The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Dominick L. Chiumento, Acting Superintendent of the New York State Police (NYSP); Albany Police Chief Eric Hawkins; and Town of North Greenbush Police Chief David Keevern.
As part of his previously entered guilty pleas to armed bank robbery, firearms, and conspiracy charges, Walls admitted that he committed two armed robberies with Christopher Cohn a/k/a “Wolf.” On February 6, 2019, Walls and Cohn pulled up to an Albany Trustco Bank branch, where Cohn declared he was about to “go do this,” meaning that he planned to rob the bank. Walls and Cohn then entered the bank wearing ski masks. In the bank, Walls displayed a gun, and both men threatened to kill the bank’s employees, who surrendered approximately $150,000 to the pair.
Walls also admitted that on the morning of February 26, 2019, he and Cohn entered an M&T Bank branch in North Greenbush, each wearing a ski mask and brandishing a gun. During the robbery, Cohn fired multiple shots, including one that grazed a bank employee. According to court documents, law enforcement tracked Cohn, Walls, and their getaway driver to an Albany motel using a GPS device placed in the stolen money by a member of the bank’s staff. Cohn was apprehended by officers with more than $10,000 in cash and wearing red sneakers matching those captured by the bank’s surveillance cameras during the robbery. Walls was arrested in the motel’s lobby, where officers found him with several bags containing approximately $3,800 in cash along with ski masks and other clothing matching that worn by the robbers.
United States District Judge Mae A. D’Agostino also ordered Walls to serve a 5-year term of post-imprisonment supervised release, to pay $167,681 in restitution to his victims, and to forfeit $79,117.
After pleading guilty to firearms, armed bank robbery and conspiracy charges, Cohn was sentenced to 241 months in prison by Senior United States District Judge Lawrence E. Kahn.
This case was investigated by the FBI, the NYSP, the North Greenbush Police Department, and the Albany Police Department, with the assistance of the Albany County Sheriff’s Office and the Rensselaer County District Attorney’s Office. Assistant U.S. Attorneys Joshua R. Rosenthal and Ashlyn Miranda prosecuted the case.
Providence Man Sentenced to Ten Years in Federal Prison for Enticing Minor Children to Engage in Illicit Sexual ActivityRead the Press Release
PROVIDENCE, RI – A Providence man who admittedly coerced a 10-year-old Utah girl and more than a dozen other minor females to engage in sexually explicit conduct while he recorded their actions via a live internet link that he provided to them has been sentenced to 10 years in federal prison, announced United States Attorney Zachary A. Cunha
According to information presented to the court, Akinola Akinlapa, 23, engaged in online communications with approximately 75 minor females, some of whom had not yet reached puberty, in a similar fashion, coercing 15 of them to disrobe and to perform sexual acts while he watched and recorded them.
“This case is a sobering reminder of the ways in which technology enables predators to abuse their victims and inflict harm, even over great distances,” remarked U.S. Attorney Cunha. “Thanks to the bravery of one young girl, and the diligent work of our law enforcement partners, this defendant will be held accountable for his repeated, persistent and abhorrent efforts to victimize young children for his own gratification.”
“What Akinola Akinlapa did -- in sexually exploiting dozens of children-- was cruel and disgraceful, and with this sentence, this predator will not be able to harm any more children for quite some time,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This case is a prime example of how children can be victimized in the safety of their own homes and underscores the importance of talking to kids about the dangers of the internet. Parents, caregivers, and educators, please make it clear to your kids that they are not to blame if they fall victim and please report these incidents, so the FBI and our law enforcement partners can bring the perpetrators of these crimes to justice.”
According to charging documents and information presented to the court, Akinlapa engaged the Utah girl in online communications and text messages, and provided her with a video conferencing link, promising credits for use on an online gaming platform. Once connected, Akinlapa, who hid his face from view, but who could see and hear the young girl, told her that because of their communications he now had her IP address and other personal information. Akinlapa threatened to share the information on the internet if she did not disrobe and perform a sex act. The young girl feigned performing the sex act, and courageously reported the incident to her mother, who in turn contacted the West Valley City, Utah Police Department. West Valley City Police and FBI agents in Salt Lake City and in Providence identified an IP address at Akinlapa’s Providence residence as being the source of communications with the 10-year-old Utah girl. Akinlapa’s pattern of coercion with the 14 other girls was similar.
According to information presented to the court, on June 2, 2020, members of the Providence FBI Violent Crimes Against Children Task Force executed a court-authorized search of computers and smart phones belonging to Akinlapa. A forensic review revealed evidence that Akinlapa had victimized the Utah girl and 14 other young girls, and had attempted to do the same with approximately 60 other minor girls, but was unsuccessful. Images and videos of minors engaged in illicit sexual activity recorded by Akinlapa were found on his phone.
Akinlapa pleaded guilty on June 15, 2022, to charges of enticement of a minor to engage in illicit sexual activity and possession of child pornography. He was sentenced on January 11, 2024, to 120 months of incarceration to be followed by eight years of federal supervised release.
The case was prosecuted by Assistant United States Attorney Milind M. Shah.
For more information on sextortion and financial sextortion, visit the FBI’s resources on the threats at: https://www.fbi.gov/sextortion and https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/sextortion/financially-motivated-sextortion.
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Providence Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
PROVIDENCE – A Providence man found to be in possession of more than two thousand images of child sexual abuse has been sentenced to eighteen months in federal prison, announced United States Attorney Zachary A, Cunha.
In April 2019, the National Center for Missing and Exploited Children notified law enforcement that Google had provided information that a Google account had been used to upload and store approximately 300 videos and images of minors, including prepubescent minors, engaged in sexually explicit conduct. Upon further investigation, members of the Rhode Island State Police Internet Crimes Against Children Task Force and Homeland Security Investigations determined that the account belonged to belonging to Juan C. Funes, 24, of Providence.
As part of their investigation, members of law enforcement executed a court-authorized search of Funes’s residence on June 4, 2019, and discovered approximately 2,000 additional images of child sexual abuse on Funes’ cell phone.
Funes pleaded guilty previously to a charge of possession of child pornography. He was sentenced today by U.S. District Court Judge William E. Smith to eighteen months of incarceration to be followed by eight years of federal supervised release.
The case was prosecuted by Assistant United States Attorneys Milind M. Shah and John P. McAdams.
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Pittsburgh Resident Indicted on Federal Firearms and Narcotics ViolationsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney Eric G. Olshan announced today.
The two-count Indictment named Johvian Everett, age 24, formerly of Mt. Oliver, Pennsylvania, as the sole defendant.
According to the Indictment, on November 27, 2022, Everett knowingly possessed a firearm and ammunition as a convicted felon. Federal law prohibits a person who has been convicted of a felony from possessing a firearm or ammunition. The Indictment further alleges that, on the same date, Everett possessed with intent to distribute a quantity of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $2 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Katherine C. Jordan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment. 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Orleans Parish Man Indicted for Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on January 11, 2024, TYRIN WILTZ, age 29, of Orleans Parish, was charged in a five-count superseding indictment for alleged drug and gun violations. These violations occurred on and before September 21, 2022.
In Count 1, WILTZ is charged with conspiracy to distribute and possess with the intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B)(vi), (b)(1)(C), and (b)(1)(D). If convicted, WILTZ faces up to 40 years of imprisonment, a fine of up to $5,000,000.00, and at least 3 years supervised release.
In Count 2, WILTZ is charged with discharging a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii). If convicted, WILTZ facs a manadtory minimum sentence of 10 yearsup to life imprisonment, to run consecutive to any other sentence imposed, a fine of up to $250,000.00 and up to 5 years of supervised release.
In Count 3, WILTZ is charged with possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B)(vi), (b)(1)(C), and (b)(1)(D). If convicted, WILTZ faces up to 40 years imprisonment, a fine of up to $5,000,000.00, and at least 3 years of supervised release.
In Count 4, WILTZ is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). If convicted, WILTZ faces a mandatory minimum sentence of 5 years up to life imprisonment, to run consecutive to any other sentence imposed, a fine of up to $250,000.00, and up to 5 years of supervised release.
In Count 5, WILTZ is charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). If convicted, WILTZ faces up to 15 years of imprisonment, a fine of up to $250,000, and up to 3 years of supervised release. As to each of the five (5) charged counts, WILTZ also faces payment of a mandatory special assessment fee of $100.00.
On May 23, 2022, NOPD responded to a shooting on St. Roch Avenue in New Orleans and found a victim suffering from multiple gunshot wounds. NOPD developed WILTZ as the primary suspect and arrested him pursuant to a warrant on September 21, 2022. Pursuant to his arrest, NOPD recovered both weapons and illegal substances from WILTZ. On October 13, 2022, WILTZ was indicted for firearm and illegal substances violations. After his initial indictment, NOPD investigators recovered additional weapons and illegal substances in WILTZ’s possession that formed the basis for the superseding indictment.
U.S. Attorney Evans reiterated that a superseding indictment is merely a charge and that the guilt of the defendant must be proven guilty beyond a reasonable doubt.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the Louisiana State Police, and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
Organizer of a four year-old’s kidnapping sent to prisonRead the Press Release
McALLEN, Texas – A 24-year-old Edinburg resident has been sent to prison following his conviction for conspiracy to commit hostage taking, announced U.S. Attorney Alamdar S. Hamdani.
Gilbert John Montez pleaded guilty April 24, 2023.
U.S. District Judge Micaela Alvarez has now ordered Montez to serve 200 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that when an individual is involved in a criminal enterprise, he can be held accountable for the actions of all the participants involved. Judge Alvarez stated that ultimately you have a young child being removed from his mother, whether voluntarily or involuntarily, and handed from person to person which can be very traumatic for the child. The court further pointed out that the child was being used as a piece of property that had value and could be used for profit.
“Human smugglers have a bad habit of becoming human kidnappers. Montez targeted a vulnerable family and leveraged a young child’s safety and a parents’ love to extort as much money as possible,” said Hamdani. “He did not care that this child was passed from stranger to stranger, each time increasing the risk the child would be harmed. Instead, Montez put profit before people and only cared about making more money. Now, because of the Southern District’s prosecutors and investigators, Montez’s heartless business is “out of business.”
“HSI is committed to aggressively targeting human smugglers and smuggling organizers that have no qualms about using threats and even violence to collect their smuggling fees,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) - San Antonio. “We’ll continue to work jointly with our law enforcement partners to ensure that those who exploit people in these ruthless ways will themselves face serious consequences.”
Montez recruited and hired individuals to transport and hold a 4-year-old child for ransom.
On March 31, 2022, Jose Andres Romo-Torres took the young child from his mother at a Mission Texas house holding smuggled migrants and gave him to two strangers, Larissa Celena Gracia and Nichole Marie Garcia Tichacek to transport past the Falfurrias Border Patrol Checkpoint to Corpus Christi. The women then handed the child off to Michael Gee Ingram who transported the child to Houston. Once there, the child was given to Jonathan Orlando Ortiz-De Leon who took him to his apartment in Stafford.
During this time, Montez and Ortiz-De Leon contacted the young child’s father and informed him that his son would not be released until he paid $4,500. On April 3, 2023, Montez hired Carlos Oyervides to help Ortiz-De Leon collect the ransom payment and deliver the child to his father. Oyervides also spoke with the child’s father and told him he needed to pay the ransom to get his son back.
Authorities learned of the scheme and attempted to make arrangements with Oyervides and Ortiz-De Leon for the release of the child, but failed. They then tracked them down to an apartment complex in Stafford, took them into custody and located the child.
The others involved in the scheme all pleaded guilty to their varying roles and have also been ordered to prison.
Montez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of the Mission Police Department. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Orange County man sentenced for trafficking methamphetamineRead the Press Release
BEAUMONT, Texas– An Orange, Texas man has been sentenced to federal prison for drug trafficking in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Roy Allen John, Jr., 47, pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in relation to a drug trafficking crime and was sentenced to 122 months in federal prison by U.S. District Judge Marcia A. Crone on Jan. 16, 2024.
According to information presented in court, in January of 2022, John was arrested after selling approximately 27.89 grams of methamphetamine to another person for $350 cash in the Home Depot parking lot in Orange. An additional 123 grams of methamphetamine and three firearms were found in the vehicle John was driving.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Office of Justice Programs and Department of Education Leaders Tout Progress in Educational Opportunities for Incarcerated Individuals at American Correctional Association ConferenceRead the Press Release
Assistant Attorney General Amy L. Solomon joined top leaders from the Office of Justice Programs (OJP) and the Department of Education for the Education in Corrections Symposium at the American Correctional Association Winter Conference in National Harbor, Maryland, last week. Secretary of Education Miguel Cardona delivered a keynote address to help open the symposium, with Bureau of Justice Assistance (BJA) Director Karhlton F. Moore also delivering introductory remarks.
The event featured discussions of efforts to break down barriers that divide correctional education as separate from the larger field of education. OJP has invested heavily in evolving the nation’s approach to corrections and supporting people as they return from confinement to their communities. This work includes improving the reentry potential of those currently incarcerated, issuing new Guidelines for Managing Substance Withdrawal in Jails and supporting recent research that indicates an innovative approach to prison housing is showing promise.
The symposium featured Assistant Attorney General Solomon and Assistant Secretary for Education Amy Loyd in a conversation about federal Pell Grant reinstatement for incarcerated students, moderated by BJA Second Chance Fellow Angel Sanchez. Sanchez is a formerly incarcerated person who received a Pell Grant after his release and went on to obtain his undergraduate and law degrees. He is currently working towards his L.L.M. degree at Yale Law School and serves as a visiting fellow with BJA. Solomon also participated in a roundtable with Secretary of Education Cardona, Assistant Secretary Loyd and select state correctional education leaders regarding the Department of Education’s role in supporting correctional education.
Starting in 1994, incarcerated individuals were prohibited from receiving Pell funding. Eligibility was restored when the Free Application for Federal Student Aid®, or FAFSA, Simplification Act became law in 2020, granting access to students in federal and state penal institutions, and local and juvenile correctional facilities, beginning in the 2023-2024 academic year.
“Postsecondary education improves the likelihood of reentry success. And research bears this out — it’s strongly associated with reductions in recidivism, and it pays for itself four times over,” said Assistant Attorney General Solomon. “It unlocks potential and opens the door to individual growth and development. And it has a multi-generational benefit. Kids are more likely to go to college or trade school when their parents do, so a postsecondary education can actually create a legacy of academic participation that carries over to one’s children and grandchildren.”
The conversation also covered current challenges in providing educational opportunities for justice-involved individuals and existing resources available through OJP and the Department of Education. Assistant Attorney General Solomon and Assistant Secretary Loyd discussed the history of collaboration between the two agencies, beginning with the launch of the Second Chance Pell Experiment in 2015. Second Chance Pell enlisted institutions of higher learning to partner with federal and state correctional systems to provide Pell assistance on a pilot basis. Over time, 200 colleges and universities in 48 states joined the initiative, and more than 9,000 students earned postsecondary credentials with the support of Pell Grants.
Through funding from OJP, the Vera Institute of Justice has provided technical assistance to participating colleges and corrections departments to ensure that the programs offer high-quality postsecondary education in prison and after release. Assistant Attorney General Solomon and Assistant Secretary Loyd emphasized the importance of partnering with corrections experts, formerly incarcerated students and others to build on the critical momentum that has been gained in expanding opportunities for incarcerated individuals to safely and productively reenter society.
OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation's capacity to prevent and reduce crime, advance equity and fairness in the administration of justice, assist victims and uphold the rule of law. More information about OJP and its components can be found at www.ojp.gov.