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5 December 2023
Three Sentenced in Austin for Distribution of Fentanyl Resulting in 18 Year Old’s DeathRead the Press Release
AUSTIN, Texas – An Austin man and two co-conspirators were sentenced in a federal court in Austin for their roles in the distribution of fentanyl resulting in death.
According to court documents, David Lee Jr., 46, of Austin, Virginia Zepeda, 43, of Austin, and Jackie Lynne Chester, 37, of Taylor, were identified as suppliers of counterfeit oxycodone tablets and other counterfeit prescription pills in the investigation of the overdose death of an 18-year-old Coupland male. Video surveillance footage revealed the victim approaching Lee’s vehicle at a gas station and engaging in a hand-to-hand exchange with Chester through a window of the vehicle. Four and a half tablets of counterfeit oxycodone were recovered from the victim’s residence following his death. As part of the investigation, Drug Enforcement Administration agents conducted controlled-buys with Lee and Zepeda, indicating that the two were actively distributing fentanyl in the form of counterfeit oxycodone following the victim’s death.
Lee was sentenced to 240 months in prison; Zepeda was sentenced to 135 months in prison; and Chester was sentenced to 108 months in prison.
“These drug dealers knowingly sold several counterfeit pills, each containing incredibly lethal doses of fentanyl, to an unsuspecting victim, tragically leading to the poisoning and death of an 18-year-old,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This is another case in which a young victim leaves behind their loving family and friends, while the criminals themselves walked away with the intent to cause more harm. Thanks to our local and federal law enforcement partners, these three will now spend decades off the streets, unable to inflict any further damage in our communities.”
“These defendants were blinded by greed and sold fake fentanyl pills for a quick profit, and as a result, the victim and his family have suffered an immeasurable loss,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration Houston Division. “Fentanyl is the deadliest drug threat facing our country today, and it takes just a small amount to take someone’s precious life away. The disregard for human life by these defendants is apparent, and we hope these sentences serve as a closure to the family now devastated by the loss of their 18-year-old son.”
“It is the goal of the Williamson County Sheriff's Office Organized Crime Unit to arrest and prosecute fentanyl dealers to the fullest extent of the law,” said Sheriff Mike Gleason for the Williamson County Sheriff’s Office. “Fentanyl poisonings have increased in central Texas, and we will continue to use all resources available to us, including the DEA and USAO. Task Force members are committed to serving the victims, seeking justice, and providing closure for their families.”
The DEA, Williamson County Sheriff’s Office and Guadalupe County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Mark Marshall prosecuted the case.
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Tennessee Man Sentenced in Covid Relief FraudRead the Press Release
OXFORD – A Memphis, Tennessee man was sentenced today to 62 months imprisonment following his conviction for his role in a scheme to defraud the Small Business Administration (“SBA”) by submitting fraudulent loan applications to the SBA for over $11 Million.
According to court documents, Norman Beckwood, 29, of Memphis, recruited individuals to submit fraudulent loan applications to the SBA. Beckwood and his co-conspirator, Lakeith Faulker, who was an employee of the SBA and used his position at the SBA to assist borrowers, helped submit over $11 Million in fraudulent Economic Injury Disaster Loans (“EIDL”). In return for their assistance in the fraudulent loans, the borrowers paid Beckwood and Faulkner $2.3 Million.
On January 17, 2023, Beckwood entered a plea of guilty to one count of conspiracy to commit wire fraud. Today, U.S. District Judge Sharion Aycock sentenced Beckwood to serve 62 months imprisonment followed by five years of supervised release. In addition to prison time, Faulkner was ordered to pay $10,620,452.26 in restitution to the SBA. In connection with his guilty plea, Beckwood also forfeited $700,147.74, a 2018 Mercedez Benz C Class and a 2020 Mercedes Benz G63.
On December 7, 2022, Faulkner entered a plea of guilty to one count of conspiracy to commit wire fraud. On May 24, 2023, United States District Judge Debra M. Brown sentenced Faulkner to serve 62 months imprisonment followed by five years of supervised release. Faulkner was also ordered to pay $10,620,452.26 in restitution to the SBA.
Twenty-one (21) individual borrowers have also been charged in connection with the same scheme. In the case of United States v. Raven L. Brown, et al, (Case No. 3:23CR23), eight individuals have changed their plea to guilty and been sentenced by United States Senior District Judge Glen H. Davidson, Raven L. Brown (24 months incarceration, 3 years supervised release, $1,802,800 in restitution); Gerald Pegues (12 months + 1 day incarceration, 5 years supervised release, $173,200 in restitution); Gregory Shields (12 months + 1 day incarceration, 5 years supervised release, $206,000 in restitution); Shunequa Shields (6 months incarceration, 5 years supervised release, $177,100 in restitution); Devin Booker (6 months incarceration, 5 years supervised release, $211,000 in restitution); Tommie L. Spencer, Jr. (6 months incarceration, 5 years supervised release, $250,600 in restitution); Adonis Golden (12 months + 1 day incarceration, 3 years supervised release, $199,900 in restitution); and Jemarious Fair (22 months incarceration, 5 years supervised release, $199,600 in restitution). A remaining defendant is currently set for trial on February 12, 2024.
“Norman Beckwood and his cohorts stole millions of dollars from American taxpayers while taking advantage of programs designed to help keep businesses afloat during a national crisis,” said U.S. Attorney Clay Joyner. “Our office will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and will use all available tools to recover the stolen funds.”
“Abusing SBA’s pandemic relief programs intended to provide critical relief to small businesses is unconscionable.” said SBA OIG’s Central Region Special Agent-in-Charge Brady Ipock. “This sentencing further showcases that OIG will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
This scheme was initially uncovered during a civil investigation, led by the Civil Division of the U.S. Attorney’s Office and Assistant U.S. Attorney J. Harland Webster.
Assistant U.S. Attorneys Clayton A. Dabbs, Parker King and Sam Wright of the Northern District of Mississippi are prosecuting the criminal case.
The case is being investigated by the Federal Bureau of Investigation, the U.S. Small Business Administration Office of Inspector General and the U.S. Treasury Inspector General for Tax Administration.
Tech Company’s Tip Leads to Guilty Plea of Lake St. Louis ManRead the Press Release
ST. LOUIS – A Lake St. Louis, Missouri man pleaded guilty in U.S. District Court in St. Louis Tuesday and admitted taking pictures of his sexual abuse of a young girl.
Steve G. Flores, 51, pleaded guilty in front of U.S. District Judge Ronnie L. White to one count of production of child pornography.
Authorities were initially alerted by a tip to the National Center for Missing and Exploited Children by a cloud storage company about two files that appeared to contain child sexual abuse material. Court approved searches of Flores’ Google and cloud storage accounts revealed hundreds of pictures and videos he’d produced of the victim. A search of his home on Nov. 8, 2022, found electronic devices that contained similar images, as well as other images containing child pornography.
Flores is scheduled to be sentenced March 5, 2024. The charge carries a mandatory minimum prison term of 15 years, with a maximum of 30. Assistant U.S. Attorney Jillian Anderson will ask for 25 years, the plea agreement says.
The FBI, the St. Charles County Police Department and St. Charles County Cyber Crime Task Force investigated the case. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Southfield Woman Pleads Guilty to Stealing $300,000 in Unemployment Insurance BenefitsRead the Press Release
DETROIT – A Southfield woman pleaded guilty today to wire fraud arising out of a scheme to defraud the State of Michigan out of more than $300,000 in pandemic-related unemployment insurance benefits, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General, and Special Agent in Charge John Marengo of the United States Secret Service’s Detroit Field Office.
Katrina Maddox, 47, entered her guilty plea this afternoon, before United States District Judge Terrence G. Berg.
According to court records, beginning as early as April 2020 and continuing through at least September 2021, Maddox filed approximately 65 fraudulent unemployment insurance (UI) claims seeking pandemic unemployment assistance (PUA) benefits. Maddox submitted the fraudulent claims in the names of multiple individuals, using their Social Security Numbers and other personal identifying information, without those individuals’ authorization or consent. The fraudulent UI benefits were paid out via debit cards, which Maddox then used to repeatedly withdraw the funds from ATMs.
United States Attorney Ison stated, “This case reflects our ongoing commitment to prosecute those who took advantage of the Covid-19 pandemic by stealing funds intended for those in need. My office will remain vigilant in the pursuit of those who cheat the government and their fellow citizens.”
“Katrina Maddox engaged in an unemployment insurance fraud scheme targeted at the Michigan Unemployment Insurance Agency by filing false UI claims in the names of identity theft victims to obtain debit cards containing stolen UI benefits. We will continue to work with our law enforcement partners to safeguard the UI system from those who exploit these benefit programs,” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.
“We are thankful to the Department of Labor and the US Attorney’s Office for partnering with us in the investigation and prosecution of this case. We will continue to work with our partners to protect our nation’s financial infrastructure. We will continue to work with our federal and state partners to bring these perpetrators to justice,” said Special Agent in Charge Marengo.
Maddox faces a statutory maximum penalty of 20 years imprisonment on the charge of wire fraud. Per the terms of her plea agreement, Maddox will also be required to pay restitution to the victim states in the total amount of $311,440. Sentencing is set for April 25, 2024 at 2pm.
This case was investigated by the U.S. Department of Labor Office of the Inspector General and the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorneys Sarah Youngblood and Ryan A. Particka.
South Carolina Man Is Sentenced to 8+ Years in Prison for Possession of A Firearm by A FelonRead the Press Release
CHARLOTTE, N.C. – Lamar Jacquise Floyd, 28, of York, South Carolina, was sentenced today to 100 months in prison followed by two years of supervised release for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Reed Baer of the Hickory Police Department (HPD) join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, on December 9, 2022, at approximately 9:23 a.m., HPD patrol officers responded to a call for service at a McDonald’s restaurant, in reference to a suspicious person with a firearm. Responding officers identified Floyd as the person reported in the service call. Law enforcement escorted Floyd outside of the restaurant, and asked Floyd whether he had a firearm on his person. Court records show that Floyd responded that he had a firearm in the pocket of his jacket. The officers retrieved the firearm, along with two loaded magazines, ammunition, narcotics, and approximately $1,860 in U.S. currency.
Floyd has previous state convictions for narcotics and firearms violations and he is prohibited for possessing a firearm or ammunition. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and the Hickory Police Department for their investigation of the case.
Assistant U.S. Attorney Brandon Boykin of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Sioux Falls Man Sentenced to Federal Prison for Conspiracy to Commit Carjacking and Use and Brandishing of a Firearm During the Commission of a Crime of ViolenceRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota man, convicted of Conspiracy to Commit Carjacking and Use and Brandishing of a Firearm During the Commission of a Crime of Violence. The sentencing took place on November 30, 2023, in Sioux Falls, South Dakota.
Jose Uribe, age 26, was sentenced to 12 years in federal prison, followed by three years of supervised release. He was also ordered to pay $200 as a statutorily required special assessment to the Federal Crime Victims Fund.
Uribe was indicted for Carjacking, Possession of a Firearm by a Prohibited Person, and Brandishing a Firearm During and in Relation to a Crime of Violence by a federal grand jury in August of 2022. He pleaded guilty on September 11, 2023.
According to court documents, on or about the 31st day of May of 2022, Uribe, working with two others, was given a ride by another individual. During the ride, Uribe pointed a shotgun at that person and demanded the person get out of the car. Uribe and the other two conspirators then drove away in the car, later fleeing from law enforcement in the vehicle and on foot.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sioux Falls Police Department. Assistant U.S. Attorney Connie Larson prosecuted the case.
Uribe was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Sioux Falls Man Convicted of Distribution of Fentanyl Resulting in DeathRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a jury has convicted Armando Cheshier, age 25, of Sioux Falls, South Dakota, of Distribution of a Controlled Substance Resulting in Death and two counts of Distribution of a Controlled Substance following a three-day jury trial in federal district court in Sioux Fall. The verdict was returned on November 22, 2023.
The charges carry a maximum penalty of life in custody and/or a $1,000,000 fine, life on supervised release, and a $300 special assessment to the Federal Crime Victims Fund.
Cheshier was indicted by a federal grand jury in June of 2022.
Cheshier distributed fentanyl and Xanax to the victim in this case, which ultimately resulted in her death, due to the fatal amounts of fentanyl in her system. The defendant and victim in this case were friends and had spent the night together, after both ingested multiple illegal narcotic substances. The defendant awoke the next day to find the victim lying lifeless in his bed. After traveling across town to obtain Narcan to administer to the victim, the authorities were then called, and pronounced the victim deceased at the scene. An interview of the defendant following the incident revealed that he had not only provided the fentanyl that caused the overdose, but that he had also ingested the remaining pills prior to authorities arriving at the scene.
“According to lab testing, seven out of every ten fentanyl pills contain a lethal dose of this deadly controlled substance,” said Alison J. Ramsdell, U.S. Attorney for the District of South Dakota. “So when Armando Cheshire provided the victim a fentanyl pill, he essentially gave her a death sentence. We are fortunate to have law enforcement partners such as the Drug Enforcement Administration and the Sioux Falls Police Department that will investigate these difficult cases and help us hold accountable those who carelessly distribute this lethal drug. This prosecution also serves as a stark reminder that as a community, it is imperative we educate our loved ones on the dangers of fentanyl so that we can avoid the tragic loss of young lives.”
“Armando Cheshire faces countless hours in federal prison to reflect on the tragic consequences that came as a result of his actions,” DEA Omaha Division Special Agent in Charge Justin C. King said. “Two milligrams of fentanyl, small enough to fit on the tip of a pencil, is considered potentially lethal. We need to raise awareness of the threat this drug poses to our communities if we want to prevent futures deaths such as this one from occurring.”
This case was investigated by the Sioux Falls Area Drug Task Force and the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
A presentence investigation was ordered, and a sentencing date has been set for February 9, 2024, at 1:00 p.m. The defendant was remanded to the custody of the U.S. Marshals Service.
Sharon Resident Sentenced to 15 Months in Prison for Drug TraffickingRead the Press Release
PITTSBURGH, PA – Sylvia Ferguson was sentenced to 15 months in prison for drug trafficking, United States Attorney Eric G. Olshan announced today.
Ferguson, age 43, of Sharon, Pennsylvania, was sentenced by United States District Judge Cathy Bissoon. Judge Bissoon ordered Ferguson to serve three years of supervised release following her prison sentence.
Ferguson pled guilty earlier this year to conspiring to distribute morphine from July 2019 to November 2021 in Sharon, Mercer County. She was on probation at that time as a result of a prior conviction in state court.
Craig W. Haller prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation conducted the investigation leading to the conviction and sentence in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice 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.
Salem Man Sentenced to Federal Prison for Illegally Transferring a Machine GunRead the Press Release
PORTLAND, Ore.—A Salem, Oregon man previously convicted at trial was sentenced to federal prison Monday for illegally transferring a machine gun.
Daniel Matthew Kittson, 61, was sentenced to 27 months in federal prison and three years’ supervised release.
According to court documents, in December 2019, a special agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Kittson was attempting to sell a Russian PPSh-41, a machine gun capable of firing approximately 900 rounds per minute. Investigators learned that he had prior felony convictions for attempted murder, first degree manslaughter, and felon in possession of a weapon, making it illegal for him to possess any type of firearm.
In early January 2020, investigators communicated with Kittson on two separate occasions to arrange a controlled purchase of the machine gun and, on January 10, 2020, completed the transaction. Following their purchase, investigators tested the firearm and confirmed that it was indeed a functional machine gun.
On March 9, 2021, a federal grand jury in Portland returned a two-count indictment charging Kittson with illegally possessing and transferring a machine gun and illegally possessing a firearm as a convicted felon.
On May 28, 2021, Kittson was arrested without incident by the U.S. Marshals Service and was released following his first appearance in federal court. In June 2022, Kittson absconded his pretrial supervision. Three months later, on September 27, 2022, he was located and arrested in Crook County, Oregon in possession of a firearm and small quantities of methamphetamine and heroin.
On August 24, 2023, a jury found Kittson guilty of illegally transferring a machinegun.
This case was investigated by ATF. It was prosecuted by Leah Bolstad and Nicole Bockelman, Assistant U.S. Attorneys for the District of Oregon.
Roshell Beaty Sentenced to 124 Months in Prison for over $1 Million in COVID FraudRead the Press Release
Beaty enlisted the help of five family members who have been convicted alongside her
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Roshell Beaty, 46, of Benton Harbor, was sentenced to 124 months in prison for her role related to pandemic fraud schemes used to obtain over $1 million in COVID-19 relief. Beaty previously pled guilty to two counts of Conspiracy to Commit Wire Fraud and one count of Aggravated Identity Theft.
“Federal pandemic dollars were meant to protect people who had fallen on hard times,” said U.S. Attorney Mark Totten. “Beaty and her co-defendants deliberately devised a multi-state plan to commit fraud and steal over a million dollars. My office will continue to aggressively hold accountable scam artists and cheats who steal hard-earned taxpayer dollars.”
Beaty and her family stole $1,036,870 in money intended to help people during the COVID pandemic. During COVID, the federal government provided money to states to distribute to people who could not work. Beaty and her co-defendants stole $749,086 of unemployment insurance money to which they were not entitled from Michigan, California, Indiana, Illinois, and Arizona. They did this by filing unemployment insurance claims in their own names in multiple states, often states where they did not live or work. Beaty also filed unemployment insurance claims in the names of other people by using fake identification documents. Beaty and her co-defendants also stole $287,784 in loans intended for businesses suffering decreased business due to the COVID pandemic. Beaty was the leader of the group, and she enlisted the help of five family members to file fraudulent claims. Those family members have all been convicted for their role in the conspiracy. The previous press release can be viewed by visiting the following link Six Defendants Charged In $1 Million Covid Fraud Schemes.
“The blatant disregard by the defendant to defraud unemployment insurance and loan programs during the COVID-19 pandemic while many individuals and families were struggling was staggering,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “Providing false information to fraudulently gain access to relief funds is a theft of taxpayer money. The FBI remains committed to working with our partners to investigate and hold those accountable who seek to defraud government assistance programs.”
"Roshel Beaty defrauded multiple state workforce agencies by filing false unemployment insurance (UI) claims in the names of identity theft victims,” said Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “Beaty stole benefits intended to assist those who became unemployed due to the COVID-19 pandemic. We will continue to work with our law enforcement partners to protect the integrity of the UI system from those who exploit these benefit programs.”
“This sentencing wraps up yet another successful anti-fraud case for UIA’s investigators who work closely with our law enforcement partners at the state and federal levels to stop fraudsters,” said Michigan Unemployment Insurance Agency Director Julia Dale. “Our agency has increased its staffing in the Fraud and Investigations Division to allocate even more resources to catching bad actors who steal from Michigan taxpayers and bringing them to justice.”
This case was investigated by the Michigan Department of Labor and Economic Opportunity, the Michigan Department of Labor, the Federal Bureau of Investigation, and the Department of Labor - Office of the Inspector General.
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Riverside County Woman Sentenced to Nearly 3½ Years in Federal Prison for $2.8 Million Unemployment Insurance ScamRead the Press Release
SANTA ANA, California – A Riverside County woman who participated in a scheme that used stolen identities to fraudulently apply for just over $2.8 million in unemployment insurance (UI) benefits from the California Employment Development Department (EDD) has been sentenced to 41 months in federal prison, the Justice Department announced today.
Sasha Lizette Jimenez, 26, formerly of Placentia and now residing in Riverside County, was sentenced Monday afternoon by United States District Judge Cormac J. Carney. In addition to the prison term, Judge Carney ordered Jimenez to pay $2,304,203 in restitution to the EDD.
Jimenez pleaded guilty on May 22 to one count of conspiracy to commit bank fraud and admitted that she fraudulently obtained UI benefits from the EDD, including Pandemic Unemployment Assistance benefits intended for individuals who were unemployed because of the COVID-19 pandemic.
As part of the scheme that started at the beginning of the pandemic and ran for about two years, Jimenez and her co-conspirators obtained stolen personal identifying information (PII) – sometimes from the darkweb – and used those stolen identities to apply for UI benefits. The PII was stolen from victims who did not live in California, were deceased or were otherwise not eligible for UI benefits, including pandemic benefits. In total, the fraud scheme caused the issuance of at least $2,804,508 in fraudulent unemployment benefits – which were disbursed via EDD debit accounts – and at least $2,304,203 was withdrawn from those accounts.
“[B]ank records show that in 2020, an EDD card in the name of victim S.S. was used to purchase luxury jewelry from Peter Marco, a Beverly Hills jewelry business frequented by [Jimenez],” prosecutors noted in a sentencing memorandum.
In her plea agreement, Jimenez also admitted participating in a separate check fraud scheme orchestrated by her boyfriend, Meshach Samuels, 26, of Placentia. Samuels, who also participated in the EDD fraud scheme, was sentenced in October to 90 months in federal prison.
The investigation in this matter was conducted by the Los Angeles El Camino Real Financial Crimes Task Force, a multi-agency task force led by Homeland Security Investigations that includes federal and state investigators who are focused on financial crimes in Southern California. The Treasury Inspector General for Tax Administration also participated in this investigation. The Costa Mesa Police Department, the Inglewood Police Department, the Placentia Police Department, the New York City Police Department, and the Miami Beach Police Department provided assistance.
Assistant United States Attorney Rachel N. Agress of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Anyone with information about allegations of fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Richmond County man convicted at trial for trafficking heroin, illegally possessing a firearmRead the Press Release
AUGUSTA, GA: A Richmond County man has been convicted at trial on drug trafficking and gun possession charges.
Kelvin Laron Howard, 68, of Augusta, was convicted by a U.S. District Court jury after a two-day trial on charges of Possession with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The conviction subjects Howard to a statutory penalty of up to 20 years in prison on the drug charge, with an additional mandatory minimum of five years in prison for gun possession in conjunction with drug trafficking. There is no parole in the federal system.
“Kelvin Howard viewed Augusta as a wide-open market where he could profit from illegal drugs,” said U.S. Attorney Steinberg. “Working with our law enforcement partners, we will continue to identify and shut down those who would endanger our communities with illicit drugs and illegal guns.”
The jury deliberated for less than an hour before finding Howard guilty on all charges brought in an indictment filed in U.S. District Court in May 2020. As described in court documents and testimony, the charges stemmed from an investigation by the Richmond County Sheriff’s Office that identified Howard as a heroin distributor in the Augusta area. During a search of Howard’s apartment in August 2019, investigators found enough heroin for more than 700 individual doses, along with drug scales and packaging materials, nearly $1,000 in cash and a loaded semiautomatic pistol.
U.S. District Court Chief Judge J. Randal Hall will schedule a sentencing hearing for Howard after U.S. Probation Services completes a presentence investigation.
The case was investigated by the Richmond County Sheriff’s Office with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted for the United States by Assistant U.S. Attorneys Patricia G. Rhodes and L. Alexander Hamner.
Resumen de la Cumbre de la Fuerza Operativa Conjunta AlfaRead the Press Release
La fiscal general adjunta en funciones Nicole M. Argentieri, de la División Penal del Departamento de Justicia, convocó ayer en Washington, D.C., una reunión con cinco fiscales de los EE. UU. y los principales dirigentes, fiscales y colaboradores del departamento en la Fuerza Operativa Conjunta Alfa (JTFA, por sus siglas en inglés) para hablar sobre la labor de la JTFA en el desmantelamiento de las redes de tráfico y trata de personas que operan cerca de la frontera sudoccidental.
La fiscal general auxiliar en funciones Argentieri estuvo acompañada por el fiscal general Merrick B. Garland, el fiscal Alamdar Hamdani del distrito sur de Texas, el fiscal Jaime Esparza del distrito oeste de Texas, el fiscal Alexander M.M. Uballez del distrito de Nuevo México, el fiscal Gary Restaino del distrito de Arizona y la fiscal Tara K. McGrath del distrito sur de California, quienes son socios claves de la JTFA.
“El tráfico y la trata de personas son delitos insidiosos”, declaró el fiscal general Garland. “Los traficantes de personas se aprovechan de los sueños de una vida mejor de los inmigrantes vulnerables. Ponen en peligro y explotan a las personas con fines lucrativos. Y las redes de tráfico y trata de personas amenazan la seguridad de nuestras comunidades y nuestra seguridad nacional”. Hasta la fecha, la labor de la Fuerza de Tarea Operativa Conjunta Alfa ha dado como resultado más de 260 aprehensiones nacionales e internacionales, más de 170 condenas, importantes penas de prisión y cuantiosas incautaciones y decomisos de bienes y contrabando, incluidos cientos de miles de dólares en efectivo, bienes, vehículos, armas de fuego, municiones y drogas”.
Durante la reunión, la fiscal general auxiliar en funciones Argentieri destacó la labor de la JTFA para exigir responsabilidades a quienes se aprovechan de la desesperación de los migrantes, los ponen en peligro y socavan el estado de derecho mediante el tráfico de personas. Expresó su agradecimiento por el continuo compromiso de las fiscalías estadounidenses y de las autoridades del orden público con la misión fundamental de la JTFA. Fiscales estadounidenses del distrito sur de Texas, del
distrito oeste de Texas, del distrito de Nuevo México, del distrito de Arizona y del distrito sur de California están asignados a la JTFA para investigar y procesar a los traficantes de personas que operan en México, Guatemala, Honduras y El Salvador. La Sección de Derechos Humanos y Enjuiciamientos Especiales de la División Penal dirige a la JTFA en colaboración con las Fiscalías de los Estados Unidos y con el apoyo especializado de la Oficina de Asuntos Internacionales; la Oficina de Desarrollo, Asistencia y Capacitación de la Fiscalía; la Sección de Estupefacientes y Drogas Peligrosas; la Sección de Lavado de Dinero y Recuperación de Activos; la Oficina de Operaciones de Aplicación de la Ley; y la Sección de Crimen Violento y Delincuencia Organizada. La JTFA también cuenta con una importante inversión en la aplicación de la ley por parte del Departamento de Seguridad Nacional, el FBI, la Administración para el Control de Drogas y otros socios. La JTFA coordina estrechamente con las autoridades del orden público extranjeras las investigaciones transfronterizas, las aprehensiones de objetivos extranjeros y las extradiciones.
En la reunión, los líderes de la JTFA hablaron sobre las formas de utilizar los recursos limitados para mejorar los esfuerzos de aplicación de la ley de EE. UU. para combatir las redes de tráfico y trata de personas más prolíficas y peligrosas que operan en México, Guatemala, El Salvador y Honduras, y fortalecer nuestras relaciones con nuestros socios extranjeros en esos países. La fiscal general auxiliar en funciones Argentieri reafirmó el compromiso de la División Penal de dirigir y apoyar la labor fundamental de la JTFA para desarticular y desmantelar las redes delictivas que explotan a los migrantes y amenazan la seguridad pública.
De izquierda a derecha: fiscal de los EE. UU. Restaino, fiscal de los EE. UU. Uballez, fiscal general auxiliar en funciones Argentieri, fiscal general Garland, fiscal de los EE. UU. McGrath, fiscal de los EE. UU. Hamdani y fiscal de los EE. UU. Esparza.
Readout of Joint Task Force Alpha SummitRead the Press Release
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division convened a meeting with five U.S. Attorneys and the department’s key leaders, prosecutors, and contributors to Joint Task Force Alpha (JTFA) in Washington, D.C., yesterday to discuss JTFA’s work dismantling human smuggling and trafficking networks operating along the Southwest Border.
Acting Assistant Attorney General Argentieri was joined by Attorney General Merrick B. Garland, U.S. Attorney Alamdar Hamdani for the Southern District of Texas, U.S. Attorney Jaime Esparza for the Western District of Texas, U.S. Attorney Alexander M.M. Uballez for the District of New Mexico, U.S. Attorney Gary Restaino for the District of Arizona, and U.S. Attorney Tara K. McGrath for the Southern District of California, who are key partners in JTFA.
“Human smuggling and trafficking are insidious crimes,” said Attorney General Garland. “Human smugglers and traffickers prey on vulnerable migrants’ dreams of better lives. They endanger and exploit people for profit. And human smuggling and trafficking networks threaten the safety of our communities and our national security. So far, Joint Task Force Alpha’s work has resulted in over 260 domestic and international arrests; more than 170 convictions; significant jail sentences; and substantial seizures and forfeitures of assets and contraband – including hundreds of thousands of dollars in cash, property, vehicles, firearms, ammunition, and drugs.”
During the meeting, Acting Assistant Attorney General Argentieri highlighted JTFA’s work to hold accountable those who prey on migrants’ desperation, put migrants in danger, and undermine the rule of law through human smuggling. She expressed appreciation for the continued commitment from the U.S. Attorney’s Offices and law enforcement partners to JTFA’s critical mission. Prosecutors from the U.S. Attorneys’ Offices for the Southern District of Texas, Western District of Texas, District of New Mexico, District of Arizona, and Southern District of California are detailed to JTFA to investigate and prosecute human smugglers operating in Mexico, Guatemala, Honduras, and El Salvador. The Criminal Division’s Human Rights and Special Prosecutions Section leads JTFA in partnership with the U.S. Attorneys’ Offices and with dedicated support from the Office of International Affairs; Office of Prosecutorial Development, Assistance, and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from the Department of Homeland Security, FBI, Drug Enforcement Administration, and other partners. JTFA coordinates closely with foreign law enforcement partners on cross-border investigations, arrests of foreign targets, and extraditions.
At the meeting, JTFA leaders discussed ways to use limited resources to enhance U.S. enforcement efforts to combat the most prolific and dangerous human smuggling and trafficking networks operating in Mexico, Guatemala, El Salvador, and Honduras and strengthen our relationships with our foreign partners in those countries. Acting Assistant Attorney General Argentieri reaffirmed the Criminal Division’s commitment to leading and supporting JTFA’s critical work to disrupt and dismantle criminal networks who exploit migrants and threaten public safety.
From left to right: U.S. Attorney Restaino, U.S. Attorney Uballez, Acting Assistant Attorney General Argentieri, Attorney General Garland, U.S. Attorney McGrath, U.S. Attorney Hamdani, and U.S. Attorney Esparza.
Prolific mail thief who stole postal vehicles and postal keys pleads guilty to federal chargesRead the Press Release
Seattle – A man who committed a series of mail vehicle and mail key thefts plead guilty to theft of government property, mail theft, illegal transactions on access devices, and illegally possessing a firearm, announced Acting U.S. Attorney Tessa Gorman. Johny Mixayboua, 27, committed a string of mail theft incidents involving stolen postal vehicles, stolen postal keys, mail theft and associated crimes. The postal service had to halt deliveries in the zip code 98118 for about a week while investigators worked to track down and arrest Mixayboua. Mixayboua will be sentenced in U.S. District Court by Judge Richard A. Jones in Seattle on March 8, 2024.
According to the plea agreement, between December of 2022 and May of 2023, Mixayboua unlawfully gained access to cluster mailbox units in various locations throughout King County. He repeatedly stole mail from the cluster mailbox units that were addressed to others.
During this time, Mixayboua stole credit cards from the mail he unlawfully collected and used the stolen credit cards to make purchases for himself. He also stole and operated a United States Postal Service Vehicle. When law enforcement executed an arrest warrant on Mixayboua in May of 2023, he was found with a firearm. Mixayboua is prohibited from possessing any firearms because of previous felony convictions in King County Superior Court.
This case was investigated by U.S. Postal Inspection Service (USPIS).
Theft of Government Property is punishable by up to 10 years in prison. Mail Theft is punishable by up to 5 years in prison. Access Device – Illegal Transactions is punishable by up to 15 years in prison. Unlawful Possession of a Firearm is punishable by up to 15 years in prison.
The case is being prosecuted by Assistant United States Attorney Elyne Vaught.
Postal carrier pleads guilty to selling mail keyRead the Press Release
CINCINNATI – A former United States Postal Service employee pleaded guilty in U.S. District Court to selling a postal key that was then used to steal mail from collection boxes.
Demarco Tapplar, 19, of Cincinnati, admitted to selling a mail arrow key, which is a federal crime punishable by up to 10 years in prison.
According to court documents, in 2023, individuals in the Cincinnati area sought to steal cash and checks from U.S. Postal Service collection boxes by illegally obtaining the postal keys to the boxes.
On Jan. 23, 2023, police recovered a stolen postal key. The next day, the perpetrators of the mail theft obtained a new postal key by purchasing one from Tapplar. At that time, Tapplar was a postal carrier.
Court documents also detail that in August 2022, 10 altered checks were deposited into Tapplar’s bank accounts and in September 2022, a check stolen from the mail was altered to include Tapplar’s name and cashed.
Tapplar was indicted in June 2023.
Congress sets the minimum and maximum statutory sentences, and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley C. Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, announced the guilty plea entered on Dec. 4 before Senior U.S. District Judge Susan J. Dlott. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
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Pittsburgh Resident Pleads Guilty to Violating Federal Fraud LawsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of violating federal fraud laws, United States Attorney Eric G. Olshan announced today.
Corey Mizell, age 51, formerly of Pittsburgh, Pennsylvania, pleaded guilty to four-counts of embezzlement by an officer or employee of the United States and one-count of mail fraud before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that in April 2020, Corey Mizell began working as an agent cashier at the H. John Heinz III Department of Veterans Affairs Medical Center. In that capacity, patients would bring him veteran benefit checks to be deposited into their patient accounts. When the veterans wanted to withdraw cash from their patient accounts, they would physically appear before Mizell at his teller window to request a withdrawal. To effectuate the transaction, Mizell would call a disbursing officer, who would confirm for Mizell that the veteran had an account and provide him a transaction number. Mizell would then complete a Patient Funds Form to document the withdrawal and hand the patient the requested cash.
In January 2021, the sister of a deceased veteran called the VA Police after reviewing the balance in her brother’s patient account. According to the sister, her brother was essentially bedridden due to his disability and the COVID-19 pandemic. As a result, he could not spend the amount of cash withdrawn from his account. Subsequently, the VA Police opened an investigation into the account activity and questioned the teller who conducted each withdrawal – Mizell.
Mizell initially informed the VA Police that someone must have misrepresented their identity to him in order to fraudulently obtain the funds. Mizell also opined that he was an easy target for such a scheme since he recently became an agent cashier. The investigation revealed that Mizell would call for authorization to withdraw funds from patients who were either on COVID lockdown or who could not leave their room without an escort due to their disabilities. The U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), confronted Mizell after driving by his residence to find a remodel of the backyard and exterior of his home.
Subsequently, Mizell participated in an interview with the VA-OIG. He provided a written confession in which he admitted to “fraudulently taking money . . . from accounts of veterans.” He attributed his conduct to losing income during the pandemic and unpaid bills. Mizell identified taking money from three veterans. He estimated the total amount embezzled as $17,660. Mizell resigned from the VA on April 20, 2021.
Following Mizell’s resignation, one veteran reported that he noticed over $1,000 missing from his patient account. Law enforcement determined that $1,175 in cash withdrawals occurred from that veteran’s account between November 2020 and January 2021. While Mizell did not identify this person in his written statement, the evidence supports that Mizell embezzled from that account as well. For each withdrawal, Mizell was the cashier, and he withdrew money from that account on four occasions when he embezzled money from other patients accounts. In addition, the VA-OIG determined that the amount of cash deposited by Mizell into his bank account was consistent with the total amount embezzled.
As part of the VA’s investigation, a digital forensic examination was completed on Mizell’s VA computer. The examination revealed that Mizell, on numerous occasions, visited an unemployment compensation website maintained by the Commonwealth of Pennsylvania. As a result, the United States Department of Labor, Office of Inspector General, conducted a separate investigation into Mizell related to filing for Pandemic Unemployment Assistance (PUA) and Federal Pandemic Unemployment Compensation (FPUC).
Individuals are only eligible for these pandemic benefits if they are unemployed for reasons related to the COVID-19 pandemic and are available to work. Therefore, individuals must certify on an electronic application that they are unemployed due to the pandemic and are available to accept work. After submission, the application is transmitted to the Pennsylvania Department of Labor for review. If approved for pandemic benefits, individuals are notified of the amount they will receive. In addition to the initial application, and in order to continue receiving pandemic benefits, individuals must certify on a weekly basis that they are still eligible to receive benefits. Of note, individuals are able to certify that they were unemployed for prior weeks in the pandemic and receive benefits for those weeks. The government transported the resulting payment of benefits in the form of checks and debit cards via the mail.
The Department of Labor’s investigation into Mizell revealed that he filed an electronic application for pandemic benefits on April 24, 2020. Despite working for the VA since 2016, Mizell falsified that he was not a federal employee on a VA computer using the VA medical center’s IP address. Beginning in May 2020, Mizell falsified that he was not working fulltime. During that time, he was working fulltime as an agent cashier. In April 2021, Mizell resigned from the VA. Nevertheless, in his weekly unemployment certifications, he represented that he was unemployed due to the pandemic. These falsifications allowed Mizell to collect pandemic benefits.
Mizell collected a total of $38,400 in unemployment pandemic benefits from April 2020 until September 2021. He initially received checks, but pandemic benefits were then disbursed via a debit card, which was reloaded with additional money by the government following Mizell’s weekly certifications. On June 5, 2020, the United States Postal Service transported the debit card in Mizell’s name to an address associated with him in Pittsburgh, Pennsylvania.
Judge Fischer scheduled sentencing for March 18, 2024, at 9:30 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Mizell on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Department of Labor – Office of Inspector General and Department of Veterans Affairs – Office of Inspector General conducted the investigation that led to the prosecution of Mizell.
Pennsylvania plumbing and heating company settles allegations it failed to properly subcontract with disabled veteran owned companiesRead the Press Release
Seattle – A heating and plumbing business headquartered in Boothwyn, Pennsylvania will pay $1.35 million to settle allegations it failed to follow the terms of a contract for servicing fire and life safety systems at seven Veteran’s Affairs (VA) facilities nationwide. Media Plumbing and Heating, dba Kinetix, participates in the VA’s service-disabled veteran owned small business program. Under terms of its contracts with the VA, Media was supposed to hire sub-contractor companies that also qualified as service-disabled veteran owned to service the fire and life safety systems. However, between January 2016 and December 31, 2022, it failed to do so.
“Part of the VA’s mission is to assist veterans with the transition to life after their service. This program helps support service-disabled veterans as they seek to grow their businesses,” said Acting U.S. Attorney Tessa M. Gorman. “Media had agreed to find those similarly situated companies across the country to make the program work for other veterans. The failure to do that limited the impact of the program.”
“It is critical that companies who agree to hire service-disabled veteran-owned businesses honor those commitments. Many of our nation’s veterans depend on these contracts for their livelihoods,” said Jason Root, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “We thank the U.S. Attorney’s Office and our law enforcement partners for their efforts in this case.”
According to the settlement agreement, Media had agreed to find service-disabled veteran owned companies to service the fire and life safety systems at VA facilities in Seattle, Palo Alto, California, Louisville, Kentucky, West Palm Beach, Florida, Oklahoma City, Hines, Illinois, and Bedford, Massachusetts. If the company could not find such subcontractors, it was to do the work itself. Instead, it hired non-compliant subcontractors to do the work.
Of the $1.35 million settlement amount, $592,231 is restitution.
The matter was investigated by the Veteran’s Affairs Office of Inspector General (VA-OIG).
The investigation and settlement were handled Assistant United States Attorney Matt Waldrop for the U.S. Attorney’s Office, Western District of Washington.
Ohio Man Pleads Guilty to Conspiracy to Possess with Intent to Distribute a Controlled SubstanceRead the Press Release
Gulfport, MS – A Fremont, Ohio man pled guilty to conspiracy to possess with intent to distribute a controlled substance.
According to court records, Trayvion Joaquin Scott, 25, pled guilty to his involvement in a large-scale drug trafficking organization that began operating in Picayune, MS as far back as 2015. Scott’s primary involvement in the conspiracy was making drug payments via Walmart to Walmart money transfers on behalf of the trafficking organization.
Scott will be sentenced on March 28, 2024. He faces up to twenty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and Homeland Security Investigations.
Assistant U.S. Attorney Erica Rose is prosecuting the case.
Nineteen-Year-Old Sentenced for Armed CarjackingRead the Press Release
A 19-year-old Tulsa man was sentenced to prison yesterday for carrying, using, and brandishing a firearm during a crime of violence, announced U.S. Attorney Clint Johnson. U.S. District Judge Terence C. Kern sentenced Isaiah Blaine Ousley, 19, of Tulsa to 84 months of imprisonment followed by 5 years of supervised release.
Court documents show that on July 13, 2022, Ousley committed an armed carjacking in broad daylight. He approached a woman who just exited her vehicle after lunch. Ousley pointed his firearm at the woman and demanded her keys. She complied with his demands, and he drove away in the vehicle. Ousley was spotted driving the vehicle, pulled over and arrested several hours later. He had a loaded firearm in his possession.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The FBI and Tulsa Police Department investigated the case. Assistant U.S. Attorney Nathan E. Michel prosecuted the case.
New York City Man Sentenced to 41 Months in Prison in a Family-Run $4 Million Extortion ScamRead the Press Release
WASHINGTON – Corry Blue Evans, 31, of New York, N.Y. was sentenced today to 41 months in prison for his role in an elaborate fraud, extortion, and money laundering scheme, which involved one of his brothers pretending to be a New York mobster to get a Maryland man to embezzle more than $4 million from his Washington, D.C., employer. Evans is the fifth defendant to be sentenced in the case.
The announcement was made by U.S. Attorney Matthew M. Graves and Acting Special Agent in Charge David Geist of the FBI’s Washington Field Office Criminal Division.
Evans pleaded guilty in January 2023 in the U.S. District Court for the District of Columbia. In addition to the prison term, U.S. District Court Judge Tanya S. Chutkan ordered Evans to serve three years of supervised release. Consistent with his plea agreement, Evans also must pay $4,217,542.86 in restitution and $772,500 in a forfeiture money judgment.
In April 2018, a federal grand jury indicted Evans and his older brothers Tony John Evans and Robert Evans, their parents Archie Kaslov and Candy Evans, and Robert Evans’ common-law ex-wife, Gina Rita Russell, on various charges.
According to the government’s evidence, a New York woman conspired with the Evans brothers, Kaslov, and Russell to extort money and gold bars from a Maryland man. The scheme caused the Maryland man to embezzle funds from his employer between January and March 2017. The Maryland man converted embezzled funds to cash and gold bars which he delivered to New York drop-off locations, including a hotel room, believing the funds were going to mobsters to whom the New York woman owed money. At one point during the scheme, Tony John Evans spoke to the man on the phone and threatened him by asking if he needed to remind the man where his kids went to school and where the man lived.
In reality, all of the funds the man embezzled and delivered to New York went to members of the Evans-Kaslov family. Among other things, in January 2017, Corry Evans helped facilitate the cashing of hundreds of thousands of dollars in cashier’s checks obtained with stolen funds. He admitted that he called a check cashing store employee multiple times for the purpose of convincing him that the New York woman, who was attempting to cash the checks, wanted money for her own purposes even though Corry Evans knew that was false and that he and his family members would ultimately take the cash. Indeed, after the New York woman successfully cashed hundreds of thousands of dollars in checks at the check cashing store, she provided all of the money to the Evans brothers. Archie Kaslov then drove the brothers to the New York diamond district where Kaslov and others used criminal proceeds to purchase luxury watches.
In late January 2017, the Maryland man traveled to New York to deliver approximately $500,000 in cash. In conjunction with that delivery, members of the Evans/Kaslov family briefly followed the Maryland man’s vehicle and took a photo of it, which was then shared with the Maryland man to terrify him into believing he was being actively surveilled by the mafia. After the Maryland man delivered the $500,000 in cash to a hotel room, some of the money ended up being transported to Corry Evans’ residence.
Towards the end of March 2017, the Maryland man delivered well over $1 million in gold bars to a hotel room in New York. Corry Evans, his brothers, and father all discussed the need to sell the gold. Corry Evans subsequently went to a jewelry store in New York with a sample of the gold, trying to sell it. Later, his brothers, father, and he all sold gold to that jeweler.
In May 2017, Corry Evans and his father traveled to Texas, where Kaslov used proceeds from the crime to pay $315,000 in cash for a Rolls Royce Phantom Drophead.
Corry Evans is the latest Evans/Kaslov family member to be sentenced. Gina Russell, Tony John Evans, and Robert Evans all pleaded guilty to interference with interstate commerce by extortion. The Honorable Emmet G. Sullivan, who presided over this case before it was transferred to Judge Chutkan, sentenced Tony John Evans, 35, and Robert Evans, 36, to five years in prison. Russell, 35, has not yet been sentenced.
Archie Kaslov, 57, pleaded guilty in September 2020 to conspiracy to commit wire fraud. Judge Sullivan sentenced him to 30 months in prison.
Candy Evans, 54, pleaded guilty in September 2020 to tampering with a witness by corrupt persuasion or misleading conduct. Judge Sullivan sentenced her to one year and a day in prison.
This case was investigated by the FBI’s Washington Field Office.
It was prosecuted by Assistant U.S. Attorney Kondi Kleinman and former Assistant U.S. Attorney David B. Kent, with assistance from Assistant U.S. Attorneys Diane Lucas and Arvind Lal and Paralegal Specialist Angela De Falco, who assisted with forfeiture issues, and Assistant U.S. Attorneys Oliver McDaniel and Melissa Goforth Koenig, who assisted with restraining funds.
Morganza Man Sentenced to 210 Months for Production and Attempted Production of Child PornographyRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge John W. deGravelles sentenced Norman Antoine LeBlanc, age 34, of Morganza, Louisiana, to 210 months in federal prison following his conviction for production and attempted production of child pornography. LeBlanc must serve six years of supervised release upon completing his term of imprisonment, and he must complete sex offender treatment. The Court also ordered LeBlanc to pay $15,000 in restitution. As a result of this conviction, LeBlanc will be required to register as a sex offender.
LeBlanc produced videos and images of a minor child engaged in sexually explicit conduct. Specifically, LeBlanc secretly recorded videos of a minor in the bathroom and made sexually explicit still shots from the video. LeBlanc then used a mobile application and a smartphone to send images and videos of the minor to an undercover agent in North Carolina. LeBlanc also used the mobile application to distribute approximately 97 videos and 9 images of child pornography.
This matter was investigated by the United States Department of Homeland Security, Homeland Security Investigations, and the Louisiana Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Edward H. Warner.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Missouri Postal Employee Accused of Stealing from MailRead the Press Release
ST. LOUIS – A U.S. Postal Service mail carrier in Moberly, Missouri has been federally indicted and accused of stealing from the mail.
Dawn Dowling, 58, was indicted November 29 on one felony count of embezzlement of mail by a Postal Service employee. The indictment accuses Dowling of taking mail from about July 2023 to August 2023, including rebates from the home improvement store Menards that she was supposed to deliver.
Dowling appeared in U.S. District Court in St. Louis Tuesday and pleaded not guilty.
The charge is punishable by up to five years in prison, a $250,000 fine, or both.
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 U.S. Postal Service – Office of Inspector General investigated the case. Assistant U.S. Attorney Justin Ladendorf is prosecuting the case.
Missouri Man Sentenced to 88 Months in Prison for Possessing Child PornographyRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced an Iron County, Missouri man to 88 months in prison for the possession of over 900 images containing child pornography.
Judge Limbaugh also ordered Timon Odell Mouser, 54, to be placed on supervised release for life after his release from prison.
In July of 2022, the FBI was assisting the Phelps County Sheriff's Department with a cyber tip received from the National Center for Missing and Exploited Children about an IP address used to trade child sexual abuse material. They traced it to Mouser’s home, and a search of his computer found over 900 images containing child pornography, including images of infants and toddlers and other prepubescent minor children.
Mouser pleaded guilty in U.S. District Court in Cape Girardeau in August to one count of possession of child pornography.
The FBI and the Phelps County Sheriff’s Department investigated the case. Assistant U.S. Attorney Julie Hunter prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Missouri Man Sentenced to 210 Months in Prison for Sexually Exploiting BoyRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a man from Ste. Genevieve County, Missouri to 210 months in prison for producing photos of the sexual abuse of a young boy.
Noah Church, 22, pleaded guilty in September to one count of sexual exploitation of a minor. Church admitted sending images containing child sexual abuse material to an undercover FBI agent.
In April of 2022, the FBI began investigating the use by Church of an online chat forum on Kik Messenger. Church, who used the username “LittleBois123,” shared pictures of a child and discussed sexually abusing the child. The FBI traced LittleBois123 to a home in Ste. Genevieve County, Missouri and conducted a court-approved search of the home on June 8, 2022. They found photos of the child on Church’s phone, which contained hundreds of images containing child pornography, his plea agreement says.
After his release from prison, Church will be on supervised release for 20 years.
The FBI and the Missouri State Highway Patrol investigated the case. Assistant U.S. Attorney Julie Hunter prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Memphis Man Sentenced to 5 Years in Federal Prison After Pleading Guilty in Railroad Car BurglaryRead the Press Release
Memphis, TN – On Thursday, November 30, 2023, a federal judge sentenced a Memphis man to five years in federal prison for firearms charges as well as his role in a railroad car burglary. Lawrence Anthony, 35, was sentenced to 66 months in federal prison for aiding and abetting a railroad car burglary, possessing a machine gun, and being a felon in possession of a firearm. United States District Court Judge John T. Fowlkes, Jr. also ordered Anthony to serve three years of supervised release upon completion of his prison term. Kevin G. Ritz, United States Attorney for the Western District of Tennessee, announced the sentence today.
There is no parole in the federal system.
According to court documents, on March 4, 2022, agents with CSX Transportation observed several people breaking into railroad cars containing retail merchandise destined for California. Agents apprehended one of the suspects, Anthony, who was also found to be in possession of a Glock .40 caliber pistol. The firearm had been modified with a small switch mechanism on the rear of the slide, allowing the weapon to fire fully automatically. The other suspects fled the scene after stealing merchandise worth more than $7,500 from the railroad cars.
On August 18, 2022, Memphis Police Department officers responded to a complaint that liquor was being sold from a local residence. Upon entering the home, the officers found Anthony and discovered several boxes of liquor that had been taken during a business burglary a few hours before. Officers searched the residence and found a Taurus 9mm pistol, which Anthony admitted belonged to him. Anthony was arrested by the Memphis Police Department.
Anthony pled guilty to a four-count indictment on July 20, which charged him with aiding and abetting burglary along with firearms offenses stemming from his March and August arrests. Anthony is a convicted felon with a criminal history of committing robbery, theft, and burglary.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with valuable assistance from the Memphis Police Department and CSX Transportation. United States Attorney Kevin Ritz thanked Assistant United States Attorney Regina Thompson, who prosecuted this case, as well as law enforcement partners who investigated the case.
Medford Area Drug Trafficking Investigations Result in Three Federal Prison SentencesRead the Press Release
MEDFORD, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that three federal prison sentences have been imposed this week in separate criminal cases following multi-agency drug trafficking investigations in and around Medford.
James Michael Cody Whelchel, 41, of Carson, California, was sentenced Monday to 130 months in federal prison and five years’ supervised release. Earl Richard Shamblin III, 41, of Medford, was also sentenced Monday to 45 months in federal prison and three years’ supervised release.
Terril Jacob Boss, 43, of Reno, Nevada, was sentenced today to 120 months in federal prison and five years’ supervised release.
U.S. v. Whelchel
According to court documents, in July 2021, local law enforcement officers received information that Whelchel, a known drug trafficker with a lengthy criminal history, was dealing drugs in the Medford area. Further investigation revealed that Whelchel was running his local drug trafficking operation from an area motel. After observing multiple individuals come and go from his motel room, investigators arrested Whelchel. At the time of his arrest, Whelchel possessed three cell phones, several syringes, and approximately $3,600 in cash.
Investigators located two 9mm pistols, a digital scale, and small quantities of methamphetamine, fentanyl, heroin, and unidentified pills in Whelchel’s vehicle. A search of his motel room returned more than two and a half pounds of methamphetamine, approximately one pound of powdered fentanyl, a smaller quantity of heroin, more than $51,000 in cash, and two firearms.
On September 2, 2021, a federal grand jury in Medford returned a three-count indictment charging Whelchel with possessing with intent to distribute methamphetamine, heroin, and fentanyl. On August 14, 2023, he pleaded guilty to possessing with intent to distribute methamphetamine.
U.S. v. Shamblin
Between November 11, 2019, and January 19, 2021, law enforcement conducted multiple controlled purchases of heroin from Shamblin, a known Jackson County, Oregon drug trafficker. On February 17, 2021, investigators arrested Shamblin and found digital scales, drug packaging material, records of drug transactions, and more than $4,000 in cash in his RV and on his person. The next day, on February 18, 2021, investigators obtained a recorded jail call on which Shamblin coordinated with other individuals to move and conceal a large sum of cash (later seized by law enforcement) and bury heroin in the backyard of his then residence.
On February 26, 2021, Shamblin was charged by federal criminal complaint with unlawfully possessing and distributing heroin. Later, on March 3, 2022, a federal grand jury in Medford returned a five-count indictment charging him with distributing heroin. On September 7, 2023, Shamblin pleaded guilty to one count of distributing heroin.
U.S. v. Boss
On July 21, 2020, area law enforcement obtained information that Boss, who was in possession of methamphetamine and a firearm, was located in a fast-food parking lot in White City, Oregon. A responding deputy approached Boss and told him he was being detained as part of a drug trafficking investigation. After initially denying he was armed, Boss told the deputy he had a weapon, but refused to say where it was located. Boss then began to reach for his waistband and a struggle to detain him ensued. After repeatedly ordering Boss not to reach for his waistband, Boss grabbed a firearm he possessed and was shot twice by the responding deputies. He was immediately taken to an area hospital, treated, and then booked in the Jackson County Jail.
Three days later, on July 24, 2020, investigators executed search warrants on Boss’s truck and motorcycle. They located and seized quantities of heroin and methamphetamine in his truck and a large zipper bag with heroin and methamphetamine concealed in the gas tank of his motorcycle. They also found digital scales and drug packaging materials. Later the same day, Boss was charged by federal criminal complaint with possessing with intent to distribute controlled substances, illegally possessing a firearm as a convicted felon, and possessing a firearm in furtherance of a drug trafficking crime.
On April 15, 2021, a federal grand jury in Medford indicted Boss on the same charges and, on July 5, 2023, he pleaded guilty to possessing with intent to distribute methamphetamine.
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All three cases were investigated by the Medford Area Drug and Gang Enforcement Team (MADGE). Local MADGE member agencies were assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF), Homeland Security Investigations (HSI), and Oregon State Police. Whelchel was prosecuted by Judith R. Harper, Assistant U.S. Attorney for the District of Oregon. Shamblin and Boss were prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.
MADGE is a gang and narcotics enforcement team comprised of local, state, and federal investigators that work together to dismantle drug trafficking and other criminal organizations operating in and around Jackson County, Oregon. MADGE member agencies include the Medford Police Department, Jackson County Sheriff and District Attorney’s Offices, Jackson County Community Corrections, HSI, and FBI.
Maryland Man Sentenced to Life Imprisonment for Role in Contract Killing of A Federal Witness and Two OthersRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Johnny Jenkins-Armstrong, age 26, of Baltimore, Maryland, was sentenced on December 4, 2023, to life imprisonment for his role in the June 25, 2016 murders of three individuals in Mercersburg, Franklin County, one of whom was cooperating with state and federal drug investigators. The sentence was imposed by United States District Court Judge Christopher C. Conner, who also sentenced Jenkins-Armstrong to a consecutive 20-year term of imprisonment on a companion robbery charge.
According to United States Attorney Gerard M. Karam, Corbett’s conviction was the result of a seven-year investigation into three murders that occurred on June 25, 2016, on a property along Welsh Run Road in Mercersburg, Franklin County. When Pennsylvania State Police officers were called to the scene, they found the bodies of Wendy Ann Chaney, 39, Hagerstown, Md, Brandon Cole, 47, Fayetteville, PA, and Phillip Matthew Jackson, 36, Mercersburg, PA, in a barn on victim Jackson’s property. All were shot. The three victims had their hands zipped-tied behind their backs and had been set on fire. Jackson and Cole were shot once in the head. Chaney was shot twice, once in the back and once in the back of her neck. Wendy Chaney and Brandon Cole were already dead when the police responded to the scene. Phillip Jackson was transported to York Hospital where he died shortly after arrival.
The evidence previously presented at Jenkins-Armstrong’s guilty plea and earlier related proceedings established that Wendy Chaney was in a relationship with co-defendants Kevin Coles and Torey White and had been previously assisting both with their drug distribution operation. Coles, White, co-defendant Devin Dickerson and co-defendant Kenyatta Corbett, also a heroin trafficker in Hagerstown and areas of Pennsylvania and West Virginia, learned that Chaney was cooperating with federal authorities and contracted for her to be murdered. Corbett, and co-defendant Jerell Adgebesan who worked for Corbett recruited members of a Baltimore based gang known as the Black Guerilla Family and others from Baltimore to include Jenkins-Armstrong to travel to the Jackson property to kill Wendy Chaney. Adgebesan knew these individuals from Baltimore. The killers were promised that they could take as payment $20,000 that was to be in a safe in the barn and any drugs and firearms that they could locate on the Jackson property. Once there, the killers encountered not only Wendy Chaney but also Brandon Cole and Phillip Jackson. The victims had their hands bound behind their backs with zip-ties, all were shot execution style and their bodies set on fire. Jenkins-Armstrong shot victim Chaney once in the back while co-defendant Johnson shot her in the back of the neck. Chaney was killed to protect the drug trafficking activities of Corbett, Coles, White, Dickerson, and others. Jackson and Cole were murdered to prevent them from being witnesses to the crimes of violence that were committed at the Jackson property. The killers never found any money on the property but stole some drugs and firearms.
The following individuals were charged along with Corbett as a result of the investigation:
- Jerell Adgebesan, age 35, of Baltimore and Hagerstown, Maryland, was sentenced to life imprisonment for participating in the murder of three people including a federal witness;
- Devin Dickerson, age 31, Hagerstown, pleaded guilty to conspiracy to distribute heroin and crack cocaine and was sentenced to 30 years’ imprisonment;
- Torey White, age 32, Waynesboro, PA, was convicted by a federal jury in May of 2023 of three counts of first-degree murder. His conviction is on appeal;
- Michael Buck, age 30, Hagerstown, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Nicholas Preddy, age 29, Baltimore, pleaded guilty to attempting to kill a witness and was sentenced to 30 years’ imprisonment;
- Kenyatta Corbett, age 41, of Hagerstown and Baltimore, was sentenced to life imprisonment for his role in the murders and a consecutive 20 year term of imprisonment on a Hobbs Act robbery charge. Corbett pled guilty to those charges;
- Terrance Lawson, age 31, Baltimore, sentenced to time served for attempting to intimidate a witness;
- Tyrone Armstrong, age 30, Baltimore, sentenced to time served for attempting to intimidate a witness; and
- Christopher Johnson, age 31, Baltimore, Maryland, pleaded guilty to multiple counts including murder for hire and is awaiting sentencing;
- Mark Johnson, 35, Baltimore, Maryland, pled guilty to obstructing the grand jury’s investigation and was sentenced to 110 months’ imprisonment;
- Llesenia Woodard, 46, Hagerstown, Maryland, pled guilty to providing false testimony to the grand jury investigating the murders and is awaiting sentencing
- Kevin Coles, Kevin Coles, age 36, of New York, NY and Hagerstown, Maryland, was found guilty in April 2022 of multiple crimes, including murder for hire, robbery, and drug trafficking, and was sentenced to multiple consecutive life sentences;
- Yolanda Diaz, 31, Hagerstown, Md, indicted on multiple counts of perjury and obstruction of justice based upon her testimony at the Coles trial. Her trial is currently scheduled for February 2024.
Joshua Davis, age 30, previously pled guilty to participating in the conspiracy to locate and kill an individual believed to be cooperating with federal authorities in the investigation of the triple murders. Davis was sentenced to serve 100 months’ imprisonment.
The following federal, state and local law enforcement agencies participated in the investigation: Drug Enforcement Administration Harrisburg Resident Office; Pennsylvania State Police, Chambersburg; Pennsylvania State Police, Troop H; Franklin County Drug Task Force; Franklin County Adult Probation; Pennsylvania State Probation and Parole; Hagerstown Police Department, Criminal Investigation Division; Drug Enforcement Administration, Hagerstown Resident Office; Washington County Narcotics Task Force; Drug Enforcement Administration, Baltimore District Office, Strike Force Group 1; Maryland State Police Homicide Unit; Baltimore Police Department Narcotics, Fugitive And Homicide Units; Baltimore County Police Department Narcotics and Gang Unit; Federal Bureau of Investigation Evidence Management Unit, Quantico, VA; US Marshal’s Service Harrisburg, PA and Phoenix, AZ; Franklin County District Attorney’s Office; United States Attorney’s Office, District Of Maryland; and the Washington County State’s Attorney’s Office.
Judy Fernandez, Manager of Analytic Services at LexisNexis Special Services, Inc., (LNSSI) provided expert assistance to investigators and the prosecutors in the areas of analysis, support, and the rendering of her expert opinion.
Assistant United States Attorney William A. Behe, Organized Crime Drug Enforcement Task Force, and Senior Litigation Counsel Michael Consiglio prosecuted these cases
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) identified as “Retribution for Welsh Run”. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Maryland Man Pleads Guilty to Voluntary Manslaughter While ArmedRead the Press Release
WASHINGTON – Jordan Jones, 23, of Silver Spring, Maryland,, pleaded guilty today in Superior Court to voluntary manslaughter while armed for the fatal shooting of Noel Nicol on October 11, 2021 in the 2000 block of Savannah Place Southeast, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
The plea was entered before Superior Court Judge Michael O’Keefe who scheduled sentencing for March 15, 2024.
According to court documents, Jones arranged to meet Nicol on October 11, 2021, the day after he purchased a 9mm handgun (the same caliber as murder weapon). Detectives obtained surveillance video footage from the date and time when Mr. Nicol was last seen by family and friends until October 14, 2021, when his body was found by the police in the driver’s seat of his car which was parked on Savannah Place. Jones admitted to the police in his post-arrest interview that he was in the car during the shooting. The medical examiner’s findings and the physical evidence recovered by the police were consistent with the shots being fired from the passenger side of the vehicle.
This case was investigated by the Criminal Investigation Division / Homicide Branch of the Metropolitan Police Department.
This case is being prosecuted by Assistant U.S. Attorney John Interrante.
Martinsburg man sentenced to prison for falsifying passportRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bobby Allen Stark, age 52, of Martinsburg, West Virginia, was sentenced today to 12 months in federal prison for falsifying his passport.
According to court documents and statements made in court, Stark was charged with sexual assault of a child in El Paso County, Colorado in April 2022 and ordered to surrender his passport. Upon returning to his home in Martinsburg, Stark applied for a new passport, claiming on the application form that he had lost the old one. He was able to obtain a new passport and shortly before his scheduled plea hearing in the Colorado case, Stark flew to Guyana, a country on South America’s North Atlantic coast, where he was later apprehended.
Assistant U.S. Attorneys Kyle Kane and Kimberley Crockett prosecuted the case on behalf of the government.
The U.S. Department of State’s Diplomatic Security Service investigated. The U.S. Marshals Service assisted.
U.S. District Judge Gina M. Groh presided.
Man Sentenced for Sexually Abusing a ChildRead the Press Release
A Tulsa man was sentenced today to 13 years in prison for sexual abuse of a minor in Indian Country, announced U.S. Attorney Clint Johnson. U.S. District Judge Gregory L. Frizzell sentenced Ronald Paul Phillippe, 59, of Tulsa to 156 months imprisonment, followed by lifetime supervised release.
According to court documents, from Sept. 2018 through Oct. 2021, Phillippe knowingly sexually abused a child under 12 years old. Phillippe is an enrolled member of Cherokee Nation. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The FBI investigated the case. Assistant U.S. Attorney Stephanie N. Ihler prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Louisiana Man Pleads Guilty to Cares Act FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ERNEST X. TAYLOR, JR., of Laplace, LA, age 38, pleaded guilty today before U.S. District Judge Darrel James Papillion to two counts of making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
On March 27, 2020, The CARES Act became effective and established several new temporary programs and expanded others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers, maintain payroll, and make mortgage interest payments, lease payments, and utility payments. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
According to the charging documents, TAYLOR made false statements to an approved lender on or about March 2, 2021, to fraudulently obtain a PPP loan. TAYLOR falsely claimed in his PPP application that he had not been convicted of any felony involving “fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance” within the last 5 years. In truth, TAYLOR pleaded guilty on July 15, 2016, in the Eastern District of Virginia, criminal matter no. 16-118, to conspiracy to commit federal student loan fraud in a stolen identity mail fraud scheme. TAYLOR thereafter received approximately $18,500 based upon the misrepresentations. TAYLOR then made the same false statements to an approved lender on or about April 21, 2021, when he applied for a second draw PPP loan. TAYLOR received approximately $18,500 for the second loan.
Sentencing will occur on March 26, 2024. TAYLOR faces up to five years in prison, up to $250,000 in fines, up to three years of supervised release, and a $100 mandatory special assessment fee for each false statements count.
For more information on the Department of Justice’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.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Local felon heads to prison for possessing loaded firearm and drugsRead the Press Release
HOUSTON – A 28-year-old Houston resident has been sentenced to federal prison for illegally possessing two firearms while a felon and possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Sidney Rachal pleaded guilty July 6.
U.S. District Judge Hittner has now ordered Rachal to serve 105 months in federal prison to be immediately followed by three years of supervised release. Additionally, he agreed to forfeit the two firearms and magazines. At the hearing, the court heard that Rachal also possessed several other illegal substances, such as marijuana, alprazolam and other pills along with the material to distribute them. In handing down the sentence, Judge Hittner noted his criminal history.
On Jan. 21, 2022, authorities found Rachal’s motor vehicle stopped in the middle of the road. They took him into custody for driving while intoxicated and for an outstanding felony warrant.
Upon his arrest, a search of his person revealed two plastic bags weighing approximately 68 grams that contained cocaine as well as $22,905 in cash. Subsequently, a search of his vehicle also resulted in the discovery of two magazines and two firearms, one of which - a Glock Model 26 pistol - was loaded.
The investigation revealed Rachal had been previously convicted of aggravated robbery. As such, he is prohibited from possession firearms or ammunition per federal law.
Rachal will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez prosecuted the case.
Keshena Man Indicted for Theft on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 28, 2023, a federal grand jury returned an indictment charging Merwin J. “Pete” Wynos, Jr., a 35-year-old man from Keshena, with theft on the Menominee Indian Reservation.
The indictment charged Wynos with Theft in Indian Country, in violation of Title 18, United States Code, Sections 661 and 1153(a). If convicted, Wynos would face a maximum penalty of five years in prison, a fine of up to $250,000, and up to three years of supervised release.
According to filed court documents, on or about September 23, 2023, Wynos stole more than $1,000 worth of property belonging to four separate companies from a construction site on the Menominee Indian Reservation.
The Menominee Tribal Police Department, Menominee County Sheriff’s Office, and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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414-297-1700
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Kaufman, Texas Man convicted of Drug Free Zone Offense Sentenced to 97 Months in Federal PrisonRead the Press Release
A Kaufman man who distributed methamphetamine near a drug free zone, Kaufman High School, was sentenced Monday to 97 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Kenneth Russell Barr, Jr., 55, pleaded guilty in May to possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The offense occurred within 1000 feet of the real property comprising Kaufman High School, a public secondary school. He was sentenced Monday by U.S. District Judge Sam A. Lindsay.
According to plea papers, law enforcement seized methamphetamine the defendant delivered during the weeks of May 2, and May 16, 2022. As a result of these seizures officers executed a search warrant at Barr’s residence. During the search officers located approximately 353 grams of methamphetamine. Multiple firearms were found at the residence as a result of the search (as seen in the Government’s Detention Hearing Exhibit below). As part of his guilty plea, Barr also admitted he was a convicted felon and that he knew he was not supposed to possess any firearms. Barr further admitted the place he distributed methamphetamine from is within 1000 feet of Kaufman High School.
The Texas Department of Public Safety investigated the case with assistance from the Kaufman County Sheriff’s Department and the Kaufman Police Department. Assistant United States Attorney George Leal prosecuted the case.
Kanawha County Man Sentenced for EmbezzlementRead the Press Release
CHARLESTON, W.Va. – Gary F. Fridley II, 41, of Cross Lanes, was sentenced today to three years of federal probation and ordered to pay $19,732.88 in restitution for embezzlement of labor union assets.
According to court documents and statements made in court, from about December 20, 2018, until about June 12, 2019, Fridley was a union officer in Nitro while employed by American Electric Power (AEP). As the union’s elected financial secretary, Fridley was the union’s chief financial officer and was responsible for preparing and co-signing union checks and maintaining financial records. Fridley was one of three signatories on the union’s checking account at Huntington National Bank in Nitro. As financial secretary, Fridley was entitled to an officer’s salary as well as reimbursement for lost time or wages from his employment when he took off from work for union business.
On about June 12, 2019, Fridley received a check for $1,321.55 as reimbursement for lost time. Fridley admitted that he had not lost any time with AEP during that pay period. Fridley submitted a false voucher to receive an unauthorized lost time payment and forged the signature of another union official in order to cash the check for the fictitious lost time.
Fridley submitted additional false vouchers to receive unauthorized lost time payments from the union and forged the signatures of other union officials to cash the union checks he wrote payable to himself for the fictitious lost time payments. Fridley admitted that he improperly received $19,732.88 through his wrongful actions as the union’s financial secretary.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Labor Office of Labor-Management Standards (OLMS).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Kathleen Robeson, Andrew J. Tessman and Holly Wilson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-138.
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Jimcy McGirt Pleads Guilty to Aggravated Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Jimcy McGirt, age 75, of Holdenville, Oklahoma, entered a guilty plea to one count of Aggravated Sexual Abuse in Indian Country.
The guilty plea was the result of a written plea agreement which recommends the district judge sentence McGirt to thirty years in prison, followed by a five-year term of supervised release. The parties also recommend McGirt be given credit for the time he previously served in both state and federal custody on previous convictions related to this case.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, presided over the plea hearing in Muskogee and ordered the completion of a presentence investigation report. McGirt will remain in the custody of the United States Marshal until the sentencing hearing, at which time the court will determine whether to accept the plea agreement.
Assistant United States Attorneys Sarah McAmis and Kyra Jenner represented the United States.
Jefferson County Man Accused of Sexual Exploitation of a MinorRead the Press Release
ST. LOUIS – A man from Pevely, Missouri accused of recording his sexual abuse of a minor was arrested and appeared in federal court in St. Louis Tuesday.
Matthew Gamel, 36, was indicted November 8 on one count of sexual exploitation of a minor and one count of receipt of child pornography. He pleaded not guilty Tuesday.
The indictment accuses Gamel of coercing a minor into producing child pornography between Jan. 1, 2021 and Feb. 22, 2023, and receiving child pornography between Jan. 1, 2021 and Aug. 1, 2023. A motion seeking to have Gamel held in jail until trial says he recorded his sexual abuse of the minor when she was under the age of 14.
The sexual exploitation of a minor charge is punishable by 15 to 30 years in prison. The receipt of child pornography charge is punishable by five to 20 years in prison.
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 Pevely Police Department and the FBI investigated the case. Assistant U.S. Attorney Michael Hayes is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Iowa Custom Cattle Farmer Pleads Guilty to Livestock Theft and COVID-19 FraudRead the Press Release
An Iowa farmer who operated an unlicensed custom cattle operation known as “Fawn Hollow” in Clayton County pled guilty on December 1, 2023, in federal court in Cedar Rapids. Michael Wayne Butikofer, age 53, from Monona, Iowa, was convicted of one count of theft of livestock, one count of wire fraud, and one count of false bankruptcy declaration.
In his plea agreement, Butikofer admitted he operated a large farming operation in Northeastern Iowa known as “Fawn Hollow,” from his home farm outside St. Olaf, Iowa, and at satellite locations elsewhere in Iowa and Wisconsin. Butikofer operated a so-called “custom cattle” feeding operation in which employees of his organization would raise and care for cattle owned by other individuals, including cattle investors located across the United States. Fawn Hollow then sold the cattle, primarily to a Wisconsin slaughterhouse.
At no time was Butikofer or “Fawn Hollow” registered with the United States Department of Agriculture (“USDA”) as a “dealer” under the Packers and Stockyards Act of 1921 (“the Act”). Butikofer and another individual identified as “Individual-1” did participate in the so-called “H-2A” visa program and recruited agricultural workers from the Republic of South Africa to work at Fawn Hollow.
Between July 2020 and February 2022, Butikofer converted the proceeds of sales of cattle owned by six cattle investors to his own use. Butikofer had convinced the cattle investors to allow Butikofer to sell the cattle in his own name. When Butikofer sold the cattle to the Wisconsin slaughterhouse, Butikofer falsely represented to the slaughterhouse that he had “good and merchantable title to” the cattle when he did not, in fact, own or otherwise have title to the cattle. By convincing the cattle investors to permit Butikofer to sell their cattle in his own name, and by fraudulently concealing the true ownership of the cattle from the slaughterhouse, Butikofer attempted to evade the requirements of the Act and its regulations for registration, posting of a dealer bond, and prompt payment, which would have protected the cattle investors’ funds.
Between July 2020 and August 2020, Butikofer defrauded the USDA of more than $200,000 in emergency assistance funds designed to assist livestock producers during the COVID-19 pandemic. Specifically, applications were submitted in the name of Individual-1 and entitled “Coronavirus Food Assistance Program” (“CFAP”) payments. A cattle producer qualified for CFAP payments on a per head basis based on the producer’s owned inventory of eligible beef cattle on a date selected by the producer between certain dates in calendar year 2020. It was part of Butikofer’s wire fraud scheme that the CFAP applications in Individual-1’s name falsely stated that Individual-1 owned cattle when, in truth, Individual-1 did not own any cattle. Finally, it was part of the scheme that Butikofer would intercept or otherwise gain access to the CFAP funds once the USDA provided those funds to Individual-1 and then use those CFAP funds for his own purposes.
In February 2022, Butikofer received over $1.5 million from the Small Business Administration (“SBA”) as part of an application for an Economic Injury Disaster Loan (“EIDL”). Butikofer falsely stated to the SBA that he would use the proceeds “solely as working capital to alleviate economic injury caused by” the COVID-19 pandemic. In truth, upon receiving the $1.5 million from the SBA, Butikofer used no less than $75,000 of the EIDL funds to pay an attorney known as Attorney-1 for services rendered in connection with a Chapter 11 bankruptcy proceeding that Butikofer filed on or about February 28, 2022, in In re Michael W. Butikofer et al., Case Number 22-00096, in the United States Bankruptcy Court for the Northern District of Iowa.
In March 2022, Butikofer submitted a false and fraudulent statement of financial affairs in his bankruptcy case. In April 2022, Butikofer falsely testified under oath at a meeting of creditors and, in November 2022, repeatedly committed perjury before the bankruptcy court when asked questions about the ownership of his cattle operation.
From April 2023 to November 2023, while on federal pretrial release, Butikofer recruited and caused Individual-1 to recruit H-2A workers to the United States under false and fraudulent pretenses, representations, and promises. The false and fraudulent pretenses, representations, and promises included: (1) the housing conditions provided to the employees; (2) the location of the employees’ work; (3) the terms and timing of reimbursement for the employees’ work and expenses; and (4) payment for injuries sustained during the employment.
Evidence at a detention hearing held on December 1, 2023, and December 4, 2023, showed that Butikofer attempted to tamper with grand jury and trial witnesses. In 2020, a federal district court entered a default judgment against Butikofer and in favor of H2A workers from the Republic of South Africa for civil violations of the Fair Labor Standards Act and Trafficking Victims Protective Reauthorization Act in 2018. As part of his plea agreement, Butikofer has agreed to voluntarily terminate and cease participation in foreign labor programs with respect to any program administered by the U.S. Department of Labor or U.S. Department of Homeland Security.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Butikofer faces a possible maximum sentence of 30 years’ imprisonment, a $750,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Small Business Administration, Office of Inspector General, the Federal Deposit Insurance Corporation, Office of Inspector General, the United States Department of Agriculture, Office of Inspector General, the United States Department of Labor, Office of Inspector General, and Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1018.
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Grain hauler driver sent to prison for illegally transporting peopleRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Florida man has been ordered to federal prison following his conviction for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
Joan Rincon pleaded guilty July 27.
U.S. District Judge David S. Morales has now ordered Rincon to serve 25 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard how Rincon had transported aliens in a grain hauler, including an unaccompanied minor. In handing down the sentence, the court remarked on the severity of the conduct and noted that the 15 aliens who had been transported in the grain hauler “deserved better.”
On May 7, Rincon approached the primary inspection lane at the U.S. Border Patrol (BP) checkpoint near Sarita. A K-9 soon alerted to the grain hauler he was driving.
Upon further inspection, authorities discovered 15 undocumented aliens inside the hauler as well as an additional five in the cabin. One individual described how hot it was inside the grain hauler. She claimed they were not allowed to take water, were all sweating profusely and were afraid they would pass out due to the heat.
Rincon was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Tyler Foster prosecuted the case.
Ghost Gun Manufacturer Sentenced to 10 Years IncarcerationRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Somalie Bruce, 37, of St. Croix, was sentenced by Chief District Judge Robert A. Molloy to 120 months incarceration after pleading guilty to Conspiracy to Traffic Firearms and Possession with Intent to Distribute Cocaine.
“The manufacture of ‘ghost guns’ is intended to commit senseless acts of violence that are almost impossible to solve. I am therefore relieved that due to the excellent work of federal and local law enforcement partners, many lives have been saved”, said United States Attorney Smith. “The outcome of this investigation and significant sentence is a testament to the successful collaboration between our law enforcement agencies. The assembly of ghost guns pose a significant threat to the safety of Virgin Islanders. HSI has a firm stance against weapons trafficking and wants to make it clear that we will not tolerate weapons trafficking which is fueling violent crimes in the Territory”, said HSI San Juan Special Agent in Charge Rebecca Gonzalez-Ramos.
According to court documents, federal agents began investigating Bruce in March 2020, after Customs and Border Protection intercepted a package that was mailed by Bruce from a post office in St. Croix containing approximately 1.1 kilograms of cocaine. Further investigation revealed that Bruce’s girlfriend Jeanorah Williams had purchased 67 postal money orders totaling $65,000.00 payable to several gun manufacturers in Florida and North Carolina. Agents learned that, from May 2019 to July 2020, over 70 packages containing multiple firearm parts, including M-16 rifle bolt assemblies, AR15 rifle barrels and flare gun inserts which are used to convert a flare gun into a firearm, were shipped to Bruce and Williams from the same firearm companies. Agents also recovered invoices dated May 2019 through August 2020 from several firearms companies totaling over $95,000.00 for purchases of 200 firearms parts and accessories used in the construction of AR-15 and M-16 rifles and Glock handguns. Between October and December 2020, Bruce and Williams collected additional packages of firearm parts and accessories from the same post office in St. Croix. In a search of Bruce and Williams’ apartment, agents also recovered several assembled firearms, including one with an obliterated serial number, a shotgun and five handguns. Neither Bruce nor Williams are licensed firearm dealers, importers or manufacturers, as defined by federal law, and neither possesses a license or permit to carry, possess, or otherwise own a firearm under Virgin Islands law. On November 28, 2023, Williams pleaded guilty to Engaging in the Business of Manufacturing Firearms without a License. Her sentencing date has not been set by the court.
“I am extremely proud of our CBP Officers and law enforcement counterparts who utilized a multilayered enforcement approach of intelligence collection, x-ray technology, analysis, and, most importantly, subject matter expertise to ultimately disrupt this criminal organization and keep our Virgin Islands community safe,” said Roberto Vaquero, San Juan Field Office Director of Operations, Customs and Border Protection.
This case was investigated by the United States Postal Investigation Service, Homeland Security Investigations, Customs and Border Protection, Bureau of Alcohol, Tobacco, Explosives and Firearms, Drug Enforcement Administration, Virgin Islands Port Authority and Virgin Islands Police Department and was prosecuted by Assistant United States Attorney Everard E. Potter. This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCEDTF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transactional 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.
Former Owner of New Jersey Marketing Company Sentenced to 15 Months in Prison for Role in $6 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – The former owner of a New Jersey marketing company was sentenced today to 15 months in prison for his role in a scheme to defraud public and private health benefits programs of over $6 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Philip R. Sellinger announced today.
Michael Drobish, 46, of Cedar Grove, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit health care fraud. U.S. District Judge Katharine S. Hayden imposed the sentence today in Newark federal court.
U.S. Attorney Philip R. Sellinger“This defendant exploited the health care system by taking advantage of reimbursements for compounded medications that were enormously expensive but medically unnecessary. This defendant has now been held accountable for his role in the criminal conspiracy. These compounding fraud schemes cause millions in losses to the health care system with zero benefit to beneficiaries. We will continue to combat this kind of health care fraud with our law enforcement partners.”
“The sentencing announced today demonstrate our commitment to investigate individuals who defraud TRICARE, the healthcare system for military members and their families,” Special Agent in Charge Patrick J. Hegarty in the Northeast Field Office of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, said. “Schemes to bill TRICARE for medically unnecessary services put our beneficiaries at risk and burden the TRICARE program. We will continue to partner with the U.S. Attorney’s Office and the FBI to protect the integrity of the TRICARE system.”
According to documents filed in this case and statements made in court:
Compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. The Food and Drug Administration does not approve compounded drugs and thus does not verify the safety, potency, effectiveness, or manufacturing quality of compounded drugs. Generally, a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient.
From April 2014 to January 2017, Drobish conspired with others to submit fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Drobish hired sales representatives through his marketing company to target individuals who had insurance plans that covered compounded medications. The sales representatives then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. The individuals were then directed to certain telemedicine companies, which the marketing company or its affiliates paid to issue the prescriptions. The prescribing physicians at the telemedicine companies would then write the prescriptions without performing any examination or after deliberately conducting cursory examinations that were insufficient to legitimately deem a compounded drug medically necessary.
Once the prescriptions were written, they were filled by certain compounding pharmacies with which Drobish conspired. The compounding pharmacies would then receive reimbursement from the insurance plans, and would pay Drobish’s marketing company a percentage of the reimbursement amount. Drobish would retain a portion of the payment and provide a “commission” payment to the relevant sales representative.
In addition to the prison term, Judge Hayden sentenced Drobish to three years of supervised release. As part of his plea agreement, Drobish must forfeit $532,650 in criminal proceeds and pay restitution of approximately $6.1 million.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Hegarty, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jordann Conaboy of the Opioid Abuse and Prevention Unit in Newark.
Former Executive Director of Alabama Association for Career and Technical Education Sentenced for Embezzling Federal FundingRead the Press Release
Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced the sentencing of a former executive director for the Alabama Association for Career and Technical Education for embezzlement of federal funds and tax crimes. On December 1, 2023, a federal judge sentenced Doris Joann Gilmore, 62, a resident of Montgomery, Alabama, to 37 months in prison. In addition, the judge ordered that Gilmore serve three years of supervised release following her prison term. Federal inmates are not eligible for parole.
According to the plea agreement and other court records, while serving as the executive director of Alabama Association for Career and Technical Education, Gilmore embezzled federal grant funds received by the association. Statements made during her sentencing hearing indicated that the embezzlement may have taken place for more than a decade. She also failed to send to the Internal Revenue Service payroll taxes that had been withheld during the first quarter of 2022. Gilmore pleaded guilty to the charges on May 11, 2023. Due to the financial losses caused by Gilmore’s crimes, the judge ordered her to pay $2,832,486.33 in restitution to the Alabama Association for Career and Technical Education and $802,508.88 to the IRS.
“The United States Attorney’s Office prioritizes protecting federal funds,” said Acting United States Attorney Ross. “Gilmore’s actions harmed the members of the association and prevented tax dollars from being put to a public use. I commend the hard work and countless hours put forth by all the law enforcement agencies involved.”
“Doris Gilmore was placed in a position of trust and should have directed these federal funds to their intended programs,” said FBI Special Agent in Charge Paul Brown. “When these funds are illegally earmarked for personal use the citizens of Alabama suffer, and the FBI along, with our state, local, and federal partners, will hold those responsible accountable.”
“Doris Gilmore took advantage of her position as executive director to commit financial crimes against her organization and its employees,” said Demetrius Hardeman, acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “The sentence she received should serve as a warning to others contemplating doing similar acts, that IRS Criminal Investigation will work diligently to identify and hold them accountable.”
“An important part of the U. S. Postal Inspection Service mission is to ensure public trust in the mail and to defend the nation’s mail system from illicit financial gain,” said Scott Fix, Inspector in Charge of the Houston Division of the U.S. Postal Inspection Service. “The arrest and sentencing of Doris Joanne Gilmore are a direct result of the collaborative efforts between the USPIS, FBI and IRS. The USPIS will continue to work with fellow law enforcement agencies to target those who would seek to commit similar fraud schemes."
The FBI, IRS’s Criminal Investigation Division, and the United States Postal Inspection Service investigated this case, with Assistant United States Attorney Joel Feil prosecuting.
Five charged in bank fraud and theft schemeRead the Press Release
HOUSTON – Five local men have been taken into federal custody on charges they conspired in a large-scale mail theft and credit card fraud scheme resulting in more than $1.2 million in losses, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Daniel Rios Sanchez, 35, and Omokehinde Muyiwa Oyegoke-Tewogbade, 62, both of Houston today. They are expected to make initial appearances before U.S. Magistrate Judge Christina Bryan at 2 p.m. Also charged and previously arrested were Dennis Christopher McGee, 41, Bradley Kane Zarco, 37, and Travis Castaneda Qawasmeh, 26, all also of Houston.
According to the indictment returned Oct. 4, all five obtained stolen U.S. mail containing new credit cards and bank statements for intended account holders. They allegedly called financial institutions to activate the stolen credit cards, increase credit limits and change information. The stolen credit cards were used to purchase goods, services, gift cards, cash and merchandise at retail stores, according to the charges.
Over a six-month period, they allegedly fraudulently activated at least 210 stolen credit cards and caused approximately $1,230,542.92 in losses.
All are charged with one count of conspiracy which carries a possible five-year prison term. If convicted of bank fraud, they could be sentenced to up to 30 years in prison, while a conviction of receipt of stolen mail carries a potential five years. All are also charged with aggravated identity theft which carries a mandatory two years in prison which must be served consecutively to any other prison term imposed. The charges also have potential fines of up to $1 million.
U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Karen Lansden is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Five Defendants Indicted and Arrested for Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On November 29, 2023, a federal grand jury in the District of Puerto Rico returned an indictment charging five individuals with drug trafficking.
According to court documents, Luis Javier Vázquez-Álvarez, a.k.a. “Javi Popcorn;” Luis Norberto Vázquez-Álvarez, a.k.a. “Luisito;” Meilyn Vázquez-Álvarez, a.k.a. “La Gorda;” Raymond Omar de Jesús-Rivera, a.k.a. “Villa;” and Sandra Álvarez-Rodríguez are charged with conspiring to distribute over five kilograms of cocaine. Specific defendants are charged with respect to three substantive charges relating to the possession with intent to distribute over 500 grams of cocaine on separate occasions.
The United States alleges that Luis Javier Vázquez-Álvarez and Luis Norberto Vázquez-Álvarez, known as the “Popcorn Brothers,” have led a drug-trafficking organization in Puerto Rico and spanning the eastern seaboard since at least March of this year. The organization’s members acquired kilograms of cocaine in Puerto Rico and used the United States Postal Service to send the kilograms to the continental United States.
Luis Javier Vázquez-Álvarez, who resides in Puerto Rico, organized the purchase and shipment of cocaine from Puerto Rico to the continental United States. Defendants Meilyn Vázquez-Álvarez (the sister of the “Popcorn Brothers”) and Sandra Álvarez-Rodríguez (their mother) mailed numerous parcels containing cocaine from post offices throughout the south of Puerto Rico. Luis Norberto Vázquez-Álvarez, who lived in New Jersey, received parcels containing cocaine for further distribution there. The government alleges that Raymond Omar de Jesús-Rivera also conspired in Puerto Rico to facilitate the trafficking of drugs to the United States through the mail.
Luis Javier Vázquez-Álvarez is currently on bail for a murder case in the municipality of Guayama and engaged in the charged offenses while on bail. Luis Norberto Vázquez-Álvarez is on bail from two separate cases in New Jersey -- for assault and for money laundering. He also participated in the charged drug trafficking activities while on bail on those two cases.
If convicted, the defendants face a mandatory minimum of ten years, up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The announcement was made by W. Stephen Muldrow, United States Attorney for the District of Puerto Rico, U.S. Postal Inspector Sigfredo Martínez, Special Agent in Charge of the FBI San Juan Field Office, Joseph González, Special Agent in Charge of the DEA, Denise Foster, and Puerto Rico Police Bureau Commissioner, Colonel Antonio López-Figueroa.
The United States Postal Inspection Service, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Puerto Rico Police Bureau’s Guayama Strike Force investigated this case.
Assistant U.S. Attorney R. Vance Eaton is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Final Defendant Sentenced to 12 Years in Prison for Role in Murder and Assault on Red Lake Indian ReservationRead the Press Release
ST. PAUL, Minn. – A Redby man was sentenced to 144 months in prison, followed by five years of supervised release, for his role in a murder that took place in August 2019 on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on August 12, 2019, Daniel Charles Barrett, 32, together with codefendants Mia Faye Sumner, 22, Alexia Gah Gi Gay Mary Cutbank, 22, and armed with at least one handgun, entered the garage of a residence where Daniel Alan Johnson was known to reside. Once inside, Cutbank fired multiple gunshots, fatally wounding Johnson and seriously injuring a second victim, T.B.S. The three defendants returned to a waiting vehicle and left the scene. A fourth co-defendant, Rose Celeste Siewert, 51, drove Barrett, Cutbank, and Sumner off the reservation to help them avoid arrest.
Barrett was sentenced today in U.S. District Court by Judge Susan Richard Nelson. He pleaded guilty on August 16, 2022, but absconded during his pretrial release, and was ultimately arrested on November 2, 2023. Earlier this year, Cutbank was sentenced to 240 months in prison, Sumner was sentenced to 120 months in prison, and Siewert was sentenced to 48 months in prison.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department, the FBI, the FBI Headwaters Safe Trails Task Force, the Duluth Police Department, the Minnesota Bureau of Criminal Apprehension, and the Minnesota Department of Corrections, in collaboration with the United States Attorney’s Office Missing and Murdered Indigenous Persons Initiative.
Assistant U.S. Attorney Laura Provinzino prosecuted the case.
Federal officer charged with bribery and attempted importation of cocaineRead the Press Release
LAREDO, Texas – A 35-year-old Customs and Border Protection (CBP) officer working at the Port of Entry in Laredo has been arrested, announced U.S. Attorney Alamdar S. Hamdani.
Emanuel Celedon is set to make his initial appearance before U.S. Magistrate Judge Christopher dos Santos at 9:40 a.m.
The indictment, returned Nov. 28, charges him with two counts of bribery and witnesses and two counts of attempted importation of cocaine.
The charges allege that from Oct. 1-17, Celedon accepted U.S. currency in exchange for allowing an individual to transport a substance he believed to be several kilograms of cocaine into the United States from Mexico through the Laredo Port of Entry without inspection. Celedon allegedly accepted another bribe for the same conduct from on or about Oct. 23-30.
If convicted, Celedon faces up to 15 years in prison as well as a possible $250,000 maximum fine for the bribery allegations, while the attempted importation of cocaine charges carry a mandatory minimum of five and up to 40 years in prison and up to a $5 million fine.
Department of Homeland Security - Office of Inspector General in conjunction with the Drug Enforcement Administration and CBP - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorneys Richard W. Bennett and Jennifer Day are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Englewood Armed Career Criminal Sentenced to More Than 15 Years for Heroin Distribution and Possession of FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Michael Edward Lindsey (47, Englewood) to 15 years and 8 months in federal prison for possessing a firearm as a convicted felon and possessing a controlled substance with the intent to distribute it. Lindsey was sentenced under the Armed Career Criminal Act which requires a minimum mandatory sentence of 15 years’ imprisonment. Lindsey had pleaded guilty on September 12, 2023.
According to the plea agreement, Lindsey is a multi-convicted felon for multiple narcotics distribution and violent offenses dating back to 1996. On June 9, 2022, during a traffic stop conducted by officers from the North Port Police Department (NPPD) in the area of 12145 Tamiami Trail, officers found Lindsey in possession of approximately 1.6 grams of methamphetamine and a loaded Smith & Wesson Bodyguard .380 caliber pistol loaded with five rounds of ammunition. As the officers approached Lindsey’s vehicle, Lindsey consumed a large quantity of drugs by emptying the contents of the bag into his mouth. NPPD officers recovered 1.6 grams of methamphetamine, after Lindsey had consumed the remainder of the drugs.
On November 13, 2022, NPPD officers arrested Lindsey on an active warrant. During a search incident to his arrest, the officers found Lindsey in possession of distribution quantities of methamphetamine and heroin.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Port Police Department. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Samantha C. Beckman.
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.
Dubuque Man Sentenced to Eight Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
A felon who possessed a firearm was sentenced December 4, 2023, to eight years in federal prison.
Rosnel Larose, age 32, of Dubuque, received the sentence after a June 20, 2023, guilty plea to one count of being a felon in possession of a firearm. At the plea hearing, Larose admitted that, in January 2022, he possessed a pistol after having been convicted of eleven felonies.
Larose was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Larose was sentenced to 96 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 22-1044.
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Dixon Woman Sentenced to 23 Years for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Dixon, Mo., woman has been sentenced in federal court for possessing methamphetamine to distribute.
Connie M. Gonzales, 53, was sentenced by U.S. District Judge Roseann Ketchmark on Aug. 31, 2023, to 23 years in federal prison without parole.
On Nov. 17, 2022, Gonzales pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing methamphetamine with the intent to distribute in a premises where a minor resided.
According to court documents, multiple criminal investigations were conducted between January 2017 and August 2021 by state agencies, including the Missouri State Highway Patrol and law enforcement personnel in Pulaski County, which implicated Gonzales in one or more drug-trafficking schemes. Investigators learned that Gonzales obtained large quantities of methamphetamine from a supplier in Arizona by traveling to and from Arizona while concealing contraband in a spare tire, or by arranging for the methamphetamine to be mailed to her.
One confidential informant told investigators he/she received one or two pounds of methamphetamine from Gonzales every one to three weeks. The informant reported having witnessed 10 to 15 pounds of methamphetamine in Gonzales’s residence on several occasions. Gonzales was on state probation during this period, having pleaded guilty to the felony offense of possessing methamphetamine in 2016.
Federal agents seized two packages that had been mailed to Gonzales in September 2021. The first package was mailed from a non-existent children’s toy business in Mesa, Arizona, to a St. Roberts, Mo., address. It contained approximately 1.5 kilograms of methamphetamine in six separate bundles concealed inside plush children’s toys. The second package was addressed to Kathleen Kubes (Gonzales’s deceased mother) at Gonzales’s residence. It contained approximately 1.2 kilograms of methamphetamine in five separate bundles concealed inside plush children’s toys.
Law enforcement officers executed a search warrant at Gonzalez’s residence on March 21, 2022. Gonzales was present, along with her adult daughter and her three children (ages seven to 11), who also lived at the residence. Investigators found a safe in the master bedroom that contained a large bag of crystal methamphetamine, three small baggies of crystal methamphetamine, and drug paraphernalia. Investigators also found a cellophane-wrapped package on the bed, under the sheet, that contained a large quantity of methamphetamine. In total, officers seized approximately 848 grams of methamphetamine.
Gonzales told investigators she made multiple trips to Arizona, where she would obtain one or two pounds of methamphetamine per trip.
This case was prosecuted by Assistant U.S. Attorney John D. Hatcher. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, the Pulaski County, Mo., Sheriff’s Department, the South Central Drug Task Force, and the U.S. Postal Inspection Service.