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Friday 13 October 2023
Meridian Women Sentenced to 41 Months in Federal Prison for Embezzling More Than $1.7 Million from Black Canyon Irrigation DistrictRead the Press Release
BOISE – Catherine Skidmore, 56, of Meridian, was sentenced to 41 months in federal prison for a wire fraud and money laundering scheme in which she embezzled from the Black Canyon Irrigation District (BCID), announced U.S. Attorney Josh Hurwit. In imposing the sentence, U.S. District Judge Amanda K. Brailsford also ordered Skidmore to pay restitution in the amount of $1,792,207.59 and to serve three years of supervised release following her prison sentence.
According to court records, Skidmore was employed as the Secretary-Treasurer of the BCID from approximately January 2014 through July 2022. As the Secretary-Treasurer of the BCID, Skidmore, among other things, handled fee collecting, bill payments, management of the investment accounts, and maintained the BCID’s QuickBooks database and ledgers. As the BCID Secretary-Treasurer, Skidmore had access to, and signature authority over, BCID’s bank accounts, including the ability to write and deposit checks and transfer funds to and from the accounts. Skidmore’s authority over and access to the BCID’s financial accounts, including the BCID’s savings account at a bank, and a Local Government Investment Pool (LGIP) account administered by the Idaho State Treasurer.
Beginning in May 2019 and continuing to July 2022, Skidmore knowingly devised a scheme and artifice to defraud the BCID by embezzling more than $1.7 million through the use of an elaborate series of transfers between the BCID’s various financial accounts. To implement the scheme, in May 2019, using a falsified form containing the forged signature of a member of the board of directors, Skidmore opened a second LGIP account with the Idaho State Treasurer without the knowledge or authorization of the BCID or its Board of Directors. From June 2019 through July 2022, Skidmore authorized and directed the authorization of transfers from the original LGIP account to the unauthorized second LGIP account without disclosing the nature of those transfers to the BCID or its Board of Directors. Skidmore then caused approximately $1,792,000 to be transferred from the unauthorized LGIP account to the ICCU savings account through a series of 25 separate interstate wire transfers, all without the knowledge of the BCID.
Once the funds were transferred to the BCID’s savings account, Skidmore withdrew the funds, mostly in the form of cashier’s checks. Skidmore then used the funds for her personal benefit. For example, Skidmore obtained the following cashier’s checks in excess of $10,000:
Date Cashier’s Check Issued
Amount
6/21/2019
$70,657.50
6/28/2019
$27,768.25
12/20/2019
$150,000
1/22/2020
$140,000
1/22/2020
$13,500
2/11/2020
$144,400
12/3/2020
$25,000
12/23/2020
$15,000
12/23/2020
$15,000
2/11/2021
$11,231
4/19/2021
$56,000
7/8/2021
$25,000
8/13/2021
$90,000
9/16/2021
$270,000
11/3/2021
$26,300
11/3/2021
$30,000
11/3/2021
$75,000
12/15/2021
$25,000
To conceal the embezzlement, Skidmore made false entries in the BCID internal accounting records that represented certain funds were used to pay the BCID expenses when, in fact, Skidmore used the funds for her personal use and benefit. She also created and caused to be created fictitious invoices to make it appear that the funds she had stolen were used to pay for legitimate BCID business expenses when, in reality, she used the funds for her personal use and benefit.
Skidmore used the proceeds for her personal benefit including, but not limited to, paying credit card bills for herself and others, real property taxes, home improvements, and making mortgage payments. She also used the funds to purchase real property, solar panels, and vehicles, and to fund an investment account.
U.S. Attorney Hurwit commended the FBI for its investigation, which led to the charges. Assistant U.S. Attorneys Sean Mazorol and Brittney Campbell prosecuted the case.
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Meriden Man Sentenced to 5 Years in Federal Prison for Trafficking FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GERARDO NUNEZ-IRIZARRY, also known as “Indio,” 45, of Meriden, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, between June and August 2021, law enforcement made multiple controlled purchases of fentanyl from Nunez-Irizarry. In November 2021, Nunez-Irizarry agreed to sell a 50-gram quantity of fentanyl. On November 18, 2021, investigators stopped Nunez-Irizarry’s car in Meriden as he drove to an arranged location to complete the transaction and seized approximately 50 grams of fentanyl. He was arrested on related state charges at that time.
On January 5, 2023, Nunez-Irizarry pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl.
Nunez-Irizarry, who is released on a $100,000 bond, is required to report to prison on November 17.
This matter was investigated by the DEA’s New Haven Task Force, which includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments. The investigation has been supported by the Meriden Police Department and the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force, which includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden, and Town of Groton Police Departments.
This case was prosecuted by Assistant U.S. Attorney Konstantin Lantsman through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Member of Catalytic Converter Theft Crew Pleads GuiltyRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Boston to his role in a regional organized theft crew that stole catalytic converters from over 470 vehicles, robbed jewelry stores and stole ATMs.
Nicolas Davila, 25, of Springfield, pleaded guilty to one count of conspiracy to transport stolen property in interstate commerce; two counts of interstate transportation of stolen property; and possession with intent to distribute cocaine. The drug charge arises from cocaine found during the search of Nicolas Davila’s residence as part of the catalytic converter theft investigation. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 9, 2024.
Davila and six other men were arrested on April 12, 2023, and charged with offenses related to the theft, transportation and sale of stolen catalytic converters taken from over 470 vehicles during 2022 and 2023.
Catalytic converter theft has become a nationwide problem across a multitude of state, local, and federal jurisdictions due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years. The theft of a vehicle’s catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations.
Nicholas Davila was a member of an organized crew that allegedly stole catalytic converters from at least 471 vehicles across Massachusetts and New Hampshire in 2022 and 2023 alone. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement.. According to court documents, the crew was skilled and able to locate and cut away the catalytic converter from a vehicle within a minute in most instances – often utilizing battery operated power-tools, car jacks. It is alleged that, on numerous occasions, the defendants targeted more than 10 vehicles in a single night, with one night reporting thefts from 26 vehicles.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers in the Northeast – transacting approximately $30,000 to $80,000 in stolen catalytic converters per week. In particular, Torres sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma.
On May 17, 2023, Torres pleaded guilty to his role in the catalytic converter theft conspiracy. He is scheduled to be sentenced on Dec. 14, 2023. On May 24, 2023, Oyola pleaded guilty to the ATM and jewelry store burglaries and will be sentenced at a later date.
In addition to the federal charges, Nicolas Davila faces a pending murder indictment in Hampden County Superior Court. The case in Hampden County Superior Court is being prosecuted by the Hampden County District Attorney’s Office.
The charge of conspiracy to transport stolen property in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of interstate transportation of stolen property each provide for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to twenty years, at least three years of supervised release, and a fine of up to $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts police departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The New Hampshire police departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham. The South Windsor and Windsor Connecticut Police Departments also contributed to the investigation.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Man Sentenced to 67 ½ Years for First Degree Murder and Assault in Deadly D.C. ShootingRead the Press Release
WASHINGTON – Jalen Browne, 22, of Upper Marlboro, MD, was sentenced today to 810 months (67.5 years) in prison for the murders of Jovan Hill and Tariq Riley, in July of 2021, in Northwest D.C. The sentence was announced by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Browne was convicted on July 21, 2023, following a jury trial in the Superior Court of the District of Columbia. He was found guilty of and sentenced for two counts of first-degree premeditated murder while armed, four counts of assault with intent to kill while armed, and six counts of possession of a firearm during the commission of a crime of violence.
According to the government’s evidence, shortly after 3:38pm on July 25, 2021, the defendant disguised himself and walked around the 100 block of Q Street, NW, eventually lying in wait to shoot young men enjoying the hot summer day. The defendant, using a backpack to catch his shell casings, fired 12 shots in succession at six young men. Narrowly missing three of his targets, the defendant hit 22-year old Jovan Hill, 19-year old Tariq Riley, and another man in the back. First responders found Jovan Hill and Tariq Riley on the ground. Both men were transported to nearby hospitals, but all life-saving efforts failed; both men died as a result of a single gunshot wound to the back. No witnesses provided information regarding the identity of the shooter. The government presented forensic, video surveillance, circumstantial, and motive evidence in securing a conviction on all counts.
In announcing the sentence, U.S. Attorney Graves and Acting Chief Smith commended the work of the members and detectives with the Metropolitan Police Department who investigated the case. They also recognized the members of the prosecution team, including: Charlie Bruce, Zachary McMenamin, Victim Advocates Christie Bloodworth and Deidria Ellis, and Paralegal Specialists Meridith McGarity, Lauren Douglas, and Tasha Harris. Finally, they thanked Assistant U.S. Attorneys Jeffrey A. Wojcik and Lauren Galloway who prosecuted the case.
Maryland Man Sentenced on Charges Connected to Fentanyl Distribution RingRead the Press Release
WASHINGTON – Garnell Lucas, 33, of Upper Marlboro, MD, was sentenced today to 72 months in prison for his role in a fentanyl distribution ring, announced U.S. Attorney Matthew M. Graves, and Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Office’s Criminal and Cyber Division. In addition to the prison term, U.S. District Court Judge Amit P. Mehta ordered 60 months of supervised release. Lucas pleaded guilty on May 15, 2023, to conspiracy to possess with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl. He admitted he is accountable for more than 1.2 kilograms of a mixture containing a detectable amount of fentanyl.
According to court documents, in August 2021, law enforcement began investigating a drug trafficking group running a fentanyl pill pressing operation in and around Washington, D.C. and Maryland. Law enforcement learned that the group was in possession of at least three pill presses, used to press fentanyl into counterfeit prescription pills which the group then distributed throughout Washington, D.C. and Maryland. Lucas and others were identified as participants in the drug trafficking operation. Between May 2020 and late-September 2022, the conspiracy utilized at least three pill presses, including one industrial pill press, to press mixed fentanyl.
As part of the conspiracy, the defendant distributed the counterfeit pills in a coordinated manner with co-conspirators, including to other co-conspirators and to other distributors and/or users. The co-conspirators would coordinate their distribution, including resupplying or helping each other fill orders, if necessary, to further the object of selling narcotics, and referring customers to each other. On March 29, 2022, the FBI executed a search warrant at an apartment in Southeast Washington, DC, a stash house used by the conspiracy to run the pill press operation. During the search, law enforcement seized baggies of pills and loose powder, together amounting to more than 516 pills and more than 76 grams of a mixture and substance containing fentanyl.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Kevin Rosenberg and Special Assistant U.S. Attorney Sarah J. Rasalam, of the Violence Reduction and Trafficking Offenses Section, prosecuted the case. Valuable assistance in the investigation was provided by Assistant U.S. Attorney Steven Wasserman and former Special Assistant U.S. Attorney Marnee Rand.
Man Sentenced for over $500,000 COVID-19 Relief Fraud and Money Laundering SchemeRead the Press Release
LAS VEGAS – A Nevada man was sentenced yesterday to two years and four months in prison for fraudulently obtaining over $500,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and then laundering the money through family, friends, and others.
According to court documents, Brandon Casutt, 52, of Henderson, submitted multiple false and fraudulent applications to the SBA and four SBA lenders on behalf of two entities he controlled, seeking to fraudulently obtain more than $5.7 million. Two of Casutt’s fraudulent applications ultimately received funding: a PPP loan for approximately $350,000 in the name of a purported business called Sky DeSign, and an EIDL program loan for approximately $150,000 in the name of a purported charity called Skyler’s CF Foundation. While the loan applications affirmed falsely that each entity had numerous employees, significant payroll expenses, and substantial revenue, neither entity had employees nor paid any wages.
After receiving the PPP money, Casutt laundered it by writing dozens of fake payroll checks – each in the amount of approximately $8,330 – to himself, family members, and friends. On many of the checks, Casutt falsely wrote “pandemic pay” or “back pay” in the check memo. Casutt cashed or deposited these fake paychecks. Then, within days and at Casutt’s direction, the money was diverted back to a bank account under Casutt’s control. Casutt then used the money to buy a house in Henderson.
On Aug. 26, 2020, Casutt pleaded guilty to one count of wire fraud and one count of concealment money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jason M. Frierson for the District of Nevada, Special Agent in Charge Al Childress of the IRS Criminal Investigation (IRS-CI) Phoenix Field Office, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
IRS-CI and the FBI Las Vegas Field Office investigated the case.
Trial Attorney Sara Hallmark and Assistant Chief Cory E. Jacobs of the Criminal Division’s Fraud Section and former Assistant U.S. Attorney Eric C. Schmale for the District of Nevada prosecuted the case, with assistance from Assistant U.S. Attorneys Jessica Oliva and Daniel Hollingsworth for the District of Nevada.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit 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 via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
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Man Pleads Guilty in District of New Hampshire to Child Exploitation Offenses Occurring in New JerseyRead the Press Release
NEWARK, N.J. – A Concord, New Hampshire, man pleaded guilty today in federal court in connection with the exploitation of a minor in New Jersey and possession of child sexual abuse material, U.S. Attorney Philip Sellinger and U.S. Attorney Jane E. Young announced.
Scott Wilkinson, 38, pleaded guilty to one count each of production of child pornography and one count of possession of child sexual abuse material before U.S. District Court Judge Joseph Laplante in federal court in New Hampshire.
According to documents filed in this case and statements made in court:
Wilkinson traveled from New Hampshire to New Jersey in April 2022, where he engaged in sexual acts with a 12-year-old child. Wilkinson had been corresponding with the child online for approximately one year prior to traveling to New Jersey to meet the child. A video that Wilkinson created of himself engaged in sexual acts with the child was found on his cell phone, as were other images and videos of child sexual abuse material.
The count of production of child pornography is punishable by a mandatory minimum of 15 years in prison and a maximum of 30 years in prison. The count of possession of child pornography is punishable by a maximum of 10 years in prison, or a maximum of 20 years in prison if the court finds the defendant possessed child pornography of a child under the age of 12.
Wilkinson faces a maximum penalty of 30 years in prison, up to lifetime supervised release, a fine of $250,000 and mandatory restitution. Sentencing is scheduled for Jan. 22, 2024.
U.S. Attorney Sellinger and U.S. Attorney Young credited special agents of the FBI the Newark Child Exploitation and Human Trafficking Task force, under the direction of Special Agent in Charge James E. Dennehy; and the Egg Harbor Township Police Department with the investigation leading to today’s guilty plea. Valuable assistance was provided by the Concord Police Department.
The government is represented by Assistant U.S. Attorney Lindsey Harteis of the District of New Jersey and Assistant U.S. Attorney Kasey Weiland of the District of New Hampshire.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Man Convicted of Possessing Child Sexual Abuse MaterialRead the Press Release
A federal jury convicted a Wisconsin man today for possessing images depicting the sexual abuse of children.
According to court documents and evidence presented at trial, Joseph M. Thomas, 43, of Kenosha, saved and viewed child sexual abuse material (CSAM) on hard drives he stored in his residence from 2017 to 2021. Law enforcement uncovered Thomas’s stash of CSAM after observing that someone accessing the internet from his residence in 2021 appeared to be downloading CSAM over an online file-sharing network. The FBI then obtained a warrant to search Thomas’s residence and seized multiple hard drives and other digital devices. A forensic examination of those devices revealed that Thomas had used them to save and view CSAM and to search for similar material online.
The jury convicted Thomas of one count of possessing child pornography. He is scheduled to be sentenced on Feb. 1, 2024, and faces a mandatory minimum of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In 2011, Thomas was convicted of the repeated sexual assault of a young child.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin, and Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office made the announcement.
The FBI investigated the case.
Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Megan J. Paulson for the Eastern District of Wisconsin are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and 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.
Louisville Man Sentenced to 25 Years in Federal Prison for Drug Trafficking and Firearms PossessionRead the Press Release
Louisville, KY – A local man was sentenced yesterday to 25 years in prison for federal drug and firearm offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to court documents, Matthew Lewis, 39, was sentenced to 25 years in prison, followed by a 5-year term of supervised release, for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine and 1 kilogram or more of heroin, possession with intent to distribute 100 grams or more of heroin, possession with intent to distribute 5 grams or more of methamphetamine, conspiracy to possess with intent to distribute marijuana, and possession of a firearm by a convicted felon. Lewis was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On July 21, 2015, in Jefferson Circuit Court, he was convicted of attempted kidnapping, assault in the second degree, wanton endangerment in the first degree, and being a convicted felon in possession of a handgun. On January 19, 2006, in Bullitt Circuit Court, he was convicted of 2 counts of possession of a controlled substance in the first degree. On September 23, 2005, in Jefferson Circuit Court, he was convicted of trafficking in a controlled substance in the first degree.
This case was investigated by the DEA, FBI, and Louisville Metro Police Department.
Assistant U.S. Attorney Alicia P. Gomez 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.
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Kenel Man Sentenced for AssaultRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Charles B. Kornmann has sentenced a Kenel, South Dakota man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner. The sentencing took place on October 10, 2023.
Rodd Rough Surface, age 46, was sentenced to two years and one day in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Rough Surface was indicted for assault by a federal grand jury in August of 2022. He pleaded guilty on July 10, 2023.
On May 29, 2021, Rough Surface was at his home in Kenel, in Corson County, within the Standing Rock Indian Reservation. He was drinking alcohol with the victim, his dating partner, when they got into an argument and he assaulted her. He used his hands to strangle her and gave her a black eye, bruising, and rendered her unconscious.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Standing Rock Agency. Assistant U.S. Attorney Tim Maher prosecuted the case.
Rough Surface was ordered to self-surrender to the U.S. Bureau of Prisons by October 31, 2023.
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Kansas woman indicted for bank robberyRead the Press Release
TOPEKA, KAN. – A federal grand jury in Topeka returned an indictment charging a Kansas woman with robbing a Topeka bank.
According to court documents, Rodshell Nicole Mays, 51, is charged with one count of bank robbery. Mays is accused of using force or intimidation on September 25, 2023, to take money from an employee at Capital Federal Bank on Southwest Topeka Boulevard.
The Federal Bureau of Investigation (FBI) and the Topeka Police Department are investigating the case.
Assistant U.S. Attorney Steve Hunting 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.
###Justice Department Releases First-Ever Comprehensive Environmental Justice Enforcement Strategy ReportRead the Press Release
The Justice Department’s Office of Environmental Justice (OEJ) released its first-ever Comprehensive Environmental Justice Enforcement Strategy Annual Report today, highlighting the department’s recent accomplishments in cases with environmental justice concerns and outlining the department’s strategy for engaging with and delivering results to communities long overburdened by pollution.
Last year, the department created OEJ within the Environment and Natural Resources Division (ENRD) with a mandate to engage all Justice Department bureaus, components and offices in the collective pursuit of environmental justice. The department also created a Comprehensive Environmental Justice Enforcement Strategy to guide its work in this area. Today’s OEJ report includes highlights of important environmental justice cases from the last year as well as key collaboration efforts with federal, Tribal, state and local stakeholders.
“Advancing environmental justice is a key part of the Justice Department’s mission,” said Associate Attorney General Vanita Gupta of the Justice Department. “OEJ’s report highlights our recent successes in protecting and restoring healthy environments and communities, including efforts concerning clean air and water, worker safety and quality of life. We will continue to work to defend and bring relief to overburdened and underserved communities.”
“Communities of color, indigenous communities and low-income communities too often feel the greatest effects of pollution and climate change,” said Assistant Attorney General Todd Kim of ENRD. “We recognize that, and we’re committed to addressing the outsized impacts felt by such communities throughout the United States.”
“It is imperative that we use all the legal authorities available to address longstanding inequities that deny people healthy and safe communities,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “We will continue to coordinate with our federal partners in using our civil rights laws to advance environmental justice for historically underserved, overburdened and marginalized communities.”
“I’m honored to serve the American people at OEJ and engage with communities throughout the country and coordinate with Justice Department and other federal entities to find solutions to environmental and health hazards,” said Director Cynthia M. Ferguson of OEJ. “Whether it’s securing the abatement of lead-based paint in lower income properties in Chicago, working to restore functioning water and wastewater systems in Jackson, Mississippi, or providing civil rights and trauma-based interview training – our efforts benefit all Americans by promoting a more equitable society.”
An example of the department’s work under its Comprehensive Environmental Justice Enforcement Strategy includes the Civil Rights Division’s first ever Title VI environmental justice resolution agreement in Lowndes County, Alabama. The division’s investigation evaluated actions by the state’s health department in operating a wastewater disposal program and whether those actions discriminated against Black residents. Ultimately, the Justice Department reached an agreement with the Alabama Department of Public Health to put it on a path to developing safe wastewater disposal and management systems.
ENRD also reached agreements in a different water management case in Jackson, Mississippi, where it negotiated interim orders with city and state officials to name a court-appointed manager and begin to stabilize Jackson’s drinking water and wastewater systems. OEJ has worked with a coalition of federal, state and local government entities to build an outreach strategy for Jackson in support of the enforcement action and to ensure that residents and workers have an opportunity to engage in the enforcement process.
The Comprehensive Environmental Justice Enforcement Strategy includes provisions for the Justice Department to partner with other federal enforcement agencies like the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance and the Department of Housing and Urban Development’s Office of Inspector General. The Justice Department is also working to strengthen coordination with Tribes and identify and prioritize affirmative litigation involving Tribal environmental justice issues.
Pursuant to the Strategy, ENRD and the Civil Rights Division have held listening sessions, and ENRD has and is scheduled to host regional Tribal summits, to increase community engagement and coordination in pursuing actionable solutions. And OEJ’s report highlights new performance measures to promote transparency regarding environmental justice enforcement efforts.
The report is available on OEJ’s website, and you can read by clicking here.
Justice Department Awards $75 Million for Active Shooter Training, to Combat Trafficking of Illegal Drugs, and Law Enforcement Mental Health and WellnessRead the Press Release
The Justice Department Office of Community Oriented Policing Services (COPS Office) announced today that it has awarded nearly $75 million in critical grant funding to law enforcement agencies and stakeholders across the country. This funding is designed to not only assist with the Department’s crime reduction efforts, but also to provide much needed assistance to agencies looking to expand their law enforcement mental health and wellness services, combat the distribution and trafficking of illicit drugs, and receive active shooter training.
“Today’s announcement underscores the Justice Department’s commitment to supporting our state and local law enforcement partners as we work together to keep our communities safe,” said Attorney General Merrick B. Garland. “These grants build on our efforts to disrupt the trafficking of deadly drugs, expand access to the mental health and wellness services that police officers deserve, and fund other critical programs. The Justice Department will continue to do everything in our power to get law enforcement officers the resources and assistance needed to help keep them and their communities safe.”
“Every day, across the country, our state and local law enforcement partners are working tirelessly on the ground to protect our communities and preserve public safety,” said Deputy Attorney General Lisa O. Monaco. “Through the grants announced today, the Justice Department honors and supports our state and local partners with much-needed resources for community policing and critical training while increasing officer access to mental health and wellness services.”
“The COPS Office grants announced today will help ensure law enforcement agencies across the country have the resources and training they need to promote public safety and further develop police-community trust,” said Associate Attorney General Vanita Gupta. “Our investment in the Collaborative Reform Initiative, in particular, will allow the Justice Department and our law enforcement partners to continue providing critical, voluntary technical assistance and support to agencies that request it.”
“COPS Office grants work to not only reduce crime and increase public safety,” said Director Hugh T. Clements of the COPS Office. “But they also make sure that the work is done through the lens of community policing. I know that both officers and community residents will be well-served by these grants.”
Funding highlights include:
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Nearly $48 million to combat the distribution and trafficking of opioids and methamphetamine through the COPS Anti-Heroin Task Force (AHTF) program and the COPS Anti-Methamphetamine Program (CAMP).
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Through the Law Enforcement Mental Health and Wellness Act (LEMHWA) program, over $9 million to law enforcement agencies and stakeholder organizations to improve the delivery of and access to mental health and wellness services for law enforcement through training and technical assistance, demonstration projects, and implementation of promising practices related to peer mentoring mental health and wellness programs.
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Almost $11 million in active shooter training funding through the Preparing for Active Shooter Situations (PASS) program.
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Nearly $7.6 million in funding for the continuation of the Collaborative Reform Initiative, through which technical assistance providers offer expert services to state, local, territorial, and tribal law enforcement agencies to support effective community policing.
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An award for $130,000 to support the efforts of the National Blue Alert Network, a voluntary nationwide system to give authorities an early warning of threats against law enforcement and to aid in the apprehension of suspects who have killed or seriously injured an officer or deputy.
Complete lists of award recipients under these programs, including funding amounts, can be found here.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to over 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of more than 136,000 officers.
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Jury convicts Kansas man of vehicle fraud schemeRead the Press Release
TOPEKA, KAN. – A federal jury convicted a Kansas man of defrauding car dealerships, financial institutions, and title loan companies.
According to court documents and evidence presented at trial, Montressa “Monty” Cunningham, 42, of Junction City was found guilty of one count of conspiracy to commit bank fraud and wire fraud, seven counts of bank fraud, three counts of wire fraud, and five counts of money laundering.
Beginning about December 2018, Cunningham applied for loans to purchase vehicles from Kansas dealerships. He submitted applications to financial institutions using other people’s social security numbers, false residential addresses, and counterfeit pay stubs showing fabricated monthly incomes, places of employment, and lengths of employment. As a result, Cunningham received seven vehicle loans totaling approximately $264,000.
As part of the scheme, once Cunningham received the titles, he altered the documents to remove the lien holder’s name and address. He used the altered titles to register the vehicles in either Kansas or Georgia to receive clear titles. Cunningham then either sold the vehicles for cash or used the clear titles as collateral for cash loans. Title loan companies and individuals who purchased the vehicles paid Cunningham approximately $85,010 in cash.
The U.S. Secret Service and the Kansas Department of Revenue, Office of Special Investigations are investigating the case.
Assistant U.S. Attorneys Sara Walton and Lindsey Debenham are prosecuting the case.
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Investment Banker Pleads Guilty to Tax EvasionRead the Press Release
Defendant Concealed over $5.1 Million in Offshore Accounts
WASHINGTON – A U.S. citizen residing in the Principality of Monaco pleaded guilty today to tax evasion for concealing from the IRS over $5,130,000 in income derived from a real estate transaction and securities investments in offshore bank accounts.
According to court documents and statements made in court, Stephen L. Schechter was a licensed U.S. investment banker, U.K. corporate finance advisor and owner and operator of a U.S.-based financial investment advisory firm.
In 2002, Schechter formed an entity called Charles Penn Longview (CPL) in the British Virgin Islands. In June 2004, Schechter opened a Swiss bank account in the name of CPL at what ultimately became known as Piguet Galland & Cie SA. In doing so, he and his bank relationship manager concealed Schechter's U.S.-citizenship status in bank documents. Until it was closed around January 2013, the account generated interest and dividends that Schechter never reported to the IRS as income.
In June 2011, Schechter sold a Monaco apartment for approximately €14,000,000, which he deposited into his CPL account at Piguet. He subsequently used the sale proceeds to purchase $8,856,691 in various securities, on which he earned interest, dividends, and capital gains. Schechter never disclosed the income from the sale of the Monaco apartment or the securities bought from sale proceeds to his tax return preparer. Schechter knew that, as a U.S. citizen, he was obligated to report and pay taxes on his income, even if he earned it abroad and lived outside the United States.
Schechter later opened another CPL bank account at UBS Monaco SA, closed his account at Piguet, and transferred the balance of approximately $10.2 million into the new UBS Monaco account, further earning undisclosed interest and dividends until 2017.
U.S. citizens and permanent residents are required annually to file a FinCEN Form 114 – Report of Foreign Bank and Financial Accounts (FBAR) – if the combined balance of all foreign accounts they own, have a financial interest in or signature authority over is more than $10,000 at any point during that calendar year. However, Schechter did not file FBARs reporting his Piguet or UBS Monaco accounts.
Schechter is scheduled to be sentenced on March 1, 2024, and faces a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Nanette Davis and Trial Attorney George Meggali of the Tax Division, and Assistant U.S. Attorney Leslie Goemaat for the District of Columbia are prosecuting the case.
Investment Banker Pleads Guilty to Tax EvasionRead the Press Release
A U.S. citizen residing in the Principality of Monaco pleaded guilty today to tax evasion for concealing from the IRS over $5,130,000 in income derived from a real estate transaction and securities investments in offshore bank accounts.
According to court documents and statements made in court, Stephen L. Schechter was a licensed U.S. investment banker, U.K. corporate finance advisor and owner and operator of a U.S.-based financial investment advisory firm.
In 2002, Schechter formed an entity called Charles Penn Longview (CPL) in the British Virgin Islands. In June 2004, Schechter opened a Swiss bank account in the name of CPL at what ultimately became known as Piguet Galland & Cie SA. In doing so, he and his bank relationship manager concealed Schechter's U.S.-citizenship status in bank documents. Until it was closed around January 2013, the account generated interest and dividends that Schechter never reported to the IRS as income.
In June 2011, Schechter sold a Monaco apartment for approximately €14,000,000, which he deposited into his CPL account at Piguet. He subsequently used the sale proceeds to purchase $8,856,691 in various securities, on which he earned interest, dividends and capital gains. Schechter never disclosed the income from the sale of the Monaco apartment or the securities bought from sale proceeds to his tax return preparer. Schechter knew that, as a U.S. citizen, he was obligated to report and pay taxes on his income, even if he earned it abroad and lived outside the United States.
Schechter later opened another CPL bank account at UBS Monaco SA, closed his account at Piguet, and transferred the balance of approximately $10.2 million into the new UBS Monaco account, further earning undisclosed interest and dividends until 2017.
U.S. citizens and permanent residents are required annually to file a FinCEN Form 114 – Report of Foreign Bank and Financial Accounts (FBAR) – if the combined balance of all foreign accounts they own, have a financial interest in or signature authority over is more than $10,000 at any point during that calendar year. However, Schechter did not file FBARs reporting his Piguet or UBS Monaco accounts.
Schechter is scheduled to be sentenced on March 1, 2024, and faces a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Nanette Davis and Trial Attorney George Meggali of the Justice Department’s Tax Division and Assistant U.S. Attorney Leslie Goemaat for the District of Columbia are prosecuting the case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan on a criminal complaint on Oct. 12 was:
Robert Stuart Quam, 42, of Belgrade, on charges of possession a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm and distribution of methamphetamine and fentanyl. If convicted of the most serious crime, Quam faces a mandatory minimum of 10 years to life in prison, a $10 million fine and five years of supervised release on the drug charge and a mandatory five years in prison, consecutive to any other sentence, a $250,000 fine and three years of supervised release on the crime of possessing a firearm in furtherance of drug trafficking. Quam was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Missouri River Drug Task Force and Billings Police Department conducted the investigation. PACER case reference. 23-144.
Appearing on an indictment and pleading not guilty on Oct. 10 was:
Glenn Gale Ware, 45, of Hardin, on charges of threats to injure or murder a federal law enforcement officer and harassing phone calls. If convicted of the most serious crime, Ware faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Ware was detained pending further proceedings. The FBI investigated the case. PACER case reference. 23-117.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston on a criminal complaint on Oct. 11 was:
Cesar Alberto Montiel-Gonzalez, 52, of Mexico, on charges of illegal entry into the United States. If convicted of the most serious charge, Montiel-Gonzalez faces a maximum of six months in prison, a $5,000 fine and one year of supervised release. Montiel-Gonzalez was detained pending further proceedings. The U.S. Border Patrol conducted the investigation. PACER case reference. 23-94.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indictment Charges Maryland Man in a 2022 Pre-Meditated Double Murder and Assault in SE WashingtonRead the Press Release
WASHINGTON –Amarii Fontanelle, 20, of Bowie, Md, was charged by indictment yesterday in the October 2022 killings of Reginald Cooper, Jr. and Davonte Berkley, and the non-fatal shooting of Christian Murray that occurred in Southeast Washington D.C., announced U.S. Attorney Matthew Graves and Acting Chief Pamela Smith of the Metropolitan Police Department.
The indictment charges Fontanelle with two counts of first-degree premeditated murder while armed, one count of assault with the intent to kill while armed, one count of aggravated assault while armed, and other firearms-related charges.
On Oct. 17, 2022, Cooper and Berkley, both 19 and residents of Maryland, drove to 1307 Congress St., SE. Fontanelle greeted them with handshakes, then led them into the house where Fontanelle’s associates were waiting in a stairwell. About two minutes after entering the building, video surveillance footage captured images of muzzle fire coming from Fontanelle.
Seconds after the shooting, Fontanelle ran from the building followed by his associates.
Cooper—who sustained eight gunshot wounds to his head, back and torso—was pronounced dead at the scene. Berkley suffered four gunshot wounds to his back, torso, arm, and buttocks and was taken to Medstar Washington Medical Center where he was pronounced dead three hours later. Murray, a resident of the District who was also at the scene of the slayings, sustained a gunshot wound to his leg that shattered the bone. Murray underwent surgery at Medstar and was hospitalized for a week.
Fontanelle was identified using still photos from video surveillance footage. He was arrested on Jan. 12, 2023.
Trial is scheduled for Oct. 7, 2024, before the Honorable Maribeth Raffinan in the Superior Court of the District of Columbia. Fontanelle is being held without bond pending trial.
This case is being investigated by members of the Major Case Squad of the Homicide Division of the MPD. The case is being prosecuted by Assistant U.S. Attorney Marybeth Manfreda.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Hotel Owner Sentenced for Conspiring with Bank President to Defraud First NBC BankRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that ARVIND “MIKE” VIRA (“VIRA”), age 77, a resident of New Orleans, Louisiana, was sentenced on October 12, 2023 by Chief U.S. District Judge Nannette Jolivette Brown to a year and a day in prison for conspiring with First NBC Bank president Ashton J. Ryan to defraud the New Orleans-based bank that failed in April 2017.
According to court documents, in 2006, Ryan lobbied VIRA to move his business accounts to First NBC Bank. VIRA agreed and became a customer of First NBC Bank. Thereafter, Ryan provided VIRA with preferential treatment. Although VIRA was assigned another loan officer, Ryan acted as his de facto loan officer at the bank. Ryan provided VIRA with low interest rates for VIRA’s loans. He also ensured that VIRA received high interest rates on his savings and checking accounts. Ryan personally approved 3% interest rates for savings and checking accounts held by VIRA, his businesses, and his family members. Ryan instructed VIRA to inflate his assets on bank loan documents, and VIRA complied by claiming to have substantial real estate and outside bank accounts that did not exist.
VIRA, in turn, provided personal loans to Ryan at Ryan’s request. Ryan, knowing that such a loan relationship was prohibited by banking regulations, instructed VIRA to conceal this personal loan relationship from First NBC Bank employees. During an FDIC regulatory exam in December 2012, FDIC examiners discovered that Ryan had borrowed money from First NBC Bank using VIRA’s loan proceeds. When examiners questioned him, Ryan admitted to their relationship, but claimed that he had not been aware that the source of the funds were First NBC Bank loan proceeds. In order to further conceal the loans that he made to Ryan, VIRA misrepresented or omitted the interest payments he received from Ryan on his personal tax returns from 2011 through 2015. From 2011 through 2017, VIRA received approximately $1,220,271.07 in profits from Ryan’s interest payments and from Ryan’s preferential treatment of him at First NBC Bank. In addition to prison, Judge Brown sentenced VIRA to three years of supervised release, the payment of $800,000 in restitution to the FDIC and the forfeiture of $420,271.07 to the United States. Further, VIRA was ordered to pay a $5,000 fine and a mandatory special assessment fee of $100.
U.S. Attorney Evans praised the work of the agencies that conducted this years-long investigation: the Federal Bureau of Investigation New Orleans Field Office; the Federal Deposit Insurance Corporation, Office of Inspector General, Dallas Regional Office; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General, Miami Field Office. Assistant U.S. Attorneys Matthew R. Payne of the Financial Crimes Unit, Nicholas D. Moses, Health Care Coordinator J. Ryan McLaren of the Appellate Unit, and Rachal Cassagne of the Narcotics Unit are in charge of the prosecution.
Grant County Man Sentenced to More Than 22 Years for Production and Attempted Production of Child PornographyRead the Press Release
Spokane, WA – On October 11, 2023, U.S. District Judge Thomas O. Rice sentenced Michael Gene Rice, 49, of Soap Lake, Washington, to 264 months and 27 days in federal prison for Production and Attempted Production of Child Pornography. Defendant Rice pleaded guilty on July 13, 2023. Judge Rice also ordered Defendant Rice to pay $48,000 in restitution to his victim and be federally supervised for the rest of his life after being released from custody.
According to court documents and proceedings, Rice was apprehended after an 11-year-old girl disclosed that Rice directed her to record herself on a phone engaging in sexually explicit conduct. The recorded footage was later found in Rice’s iCloud account. The Grant County Prosecutor’s Office successfully prosecuted Rice on charges of First Degree Dealing in and Possession of Child Pornography, resulting in guilty verdicts after a jury trial. Sentencing is pending in that case.
Rice previously was convicted of Rape of a Child in the First Degree in 2002, for which he received a suspended sentence. The victim in that case was also 11 years old.
Combined with the time Rice spent in state custody prior to appearing in federal court – 338 days, the federal sentence results in confinement of Rice for a total 23 years. “Protecting our children is a top priority of my office,” U.S. Attorney Vanessa Waldref said. “Mr. Rice repeatedly engaged in harmful conduct taking advantage of our youth in the Eastern District of Washington. With our strong partnership with state and local law enforcement and prosecutors, we were able to successfully remove Mr. Rice from the streets and prevent him from further victimizing the most vulnerable among us.”
“Grant County is a safer place after this significant sentencing,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations operations in the Pacific Northwest. “HSI and our law enforcement partners are relentless in protecting the children of our communities and this result should serve as a warning to others that seek to target our children.”
This case was investigated by Homeland Security Investigations and the Grant County Sheriff’s Office and prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington. The Grant County case is being handled by Deputy Prosecuting Attorney Carlee Bittle, who is also a Special Assistant United States Attorney.
2:23-CR-23-TORGary Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND- Dwight Culver, 30 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Culver was sentenced to 70 months in prison followed by 2 years of supervised release.
According to documents in the case, on April 6, 2022, during a traffic stop, Culver admitted to possessing a pistol that was located on the passenger floorboard. A trace of the firearm revealed that it was reported stolen from Indianapolis. Culver’s criminal history revealed that he had prior felony convictions for possession of marijuana in 2012 and criminal recklessness in 2015, and as such, is prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
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.
Gary Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND- Dwight Culver, 30 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Culver was sentenced to 70 months in prison followed by 2 years of supervised release.
According to documents in the case, on April 6, 2022, during a traffic stop, Culver admitted to possessing a pistol that was located on the passenger floorboard. A trace of the firearm revealed that it was reported stolen from Indianapolis. Culver’s criminal history revealed that he had prior felony convictions for possession of marijuana in 2012 and criminal recklessness in 2015, and as such, is prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
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.
Four Co-Conspirators Serving Prison Time for Involvement in Fentanyl Conspiracy in Northeast South DakotaRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Charles B. Kornmann has sentenced Daren Lee Basche, a South Dakota man convicted of Conspiracy to Distribute a Controlled Substance. This was the last sentencing of the four defendants involved in this indictment, and it took place on October 10, 2023. Basche, 58, of Brandon, South Dakota, was sentenced to 9 years and 7 months in federal prison, followed by 4 years of supervised release. Previously, Jevon McLeod, 33, of Sisseton, South Dakota, was sentenced on March 14, 2023, to 40 years in federal prison, followed by 4 years of supervised release. Tiarah Bissonette, 26, of Sisseton, South Dakota, was sentenced on March 14, 2023, to 4 years and 9 months in federal prison, followed by 4 years of supervised release. Trey Petrich, 24, of Watertown, South Dakota, was sentenced on August 28, 2023 to 12 years and 7 months in federal prison, followed by 4 years of supervised release. Additionally, they were each ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
All four defendants were indicted for Conspiracy to Distribute Fentanyl by a federal grand jury in July of 2022. Basche pleaded guilty on June 12, 2023, McLeod pleaded guilty on December 5, 2022, Bissonette pleaded guilty on November 16, 2023, and Petrich pleaded guilty on May 3, 2023.
During this conspiracy, McLeod would pick up pills containing fentanyl from co-conspirators in other states and transport it back to South Dakota to be distributed. Basche, Bissonette and Petrich were sub-distributors for McLeod. The group was responsible for distributing thousands of pills containing fentanyl in Northeast South Dakota.
This case was investigated by the South Dakota Division of Criminal Investigations, the Roberts County Sheriff’s Office, the Codington County Sheriff’s Office, and the Bureau of Indian Affairs. Assistant U.S. Attorney Mark Hodges prosecuted the case.
All defendants were immediately remanded to the custody of the U.S. Marshals Service after their sentencings.
Founder of Swiss Asset Management Firm Sentenced for Global Securities Fraud SchemeRead the Press Release
BOSTON – The founder and operator of a Swiss asset management firm was sentenced today in federal court in Boston for his role in a massive global securities fraud scheme that generated over $150 million in illicit proceeds.
Roger Knox, 53, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 36 months in prison. Knox was also ordered to pay forfeiture in the amount of $10,909,709 and restitution in an amount that will be determined at a later date. In January 2020, Knox pleaded guilty to securities fraud and conspiracy to commit securities fraud.
“Illegal pump-and-dump schemes cause financial hardship on countless innocent investors and erode the integrity of our capital markets. For at least six years, Mr. Knox helped implement a staggering securities fraud scheme that generated over $150 million in illicit profits, $5 million of which ended up in Mr. Knox’s own pocket,” said Acting United States Attorney Joshua S. Levy. “With our federal partners, including the FBI and the SEC, our office is committed to identifying fraudsters like Mr. Knox and holding them accountable.”
“Roger Knox was a critical participant in a massive global securities fraud scheme that generated more than $150 million in illegal proceeds. While today’s sentence cannot make up for the significant financial and emotional harm he and others inflicted upon their unwitting victims, it does send a message to those who may be looking to profit from similar schemes—think twice because the penalties you’ll face are steep,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Market manipulators should know that the FBI has a proven track record of rooting out fraudsters who illegally tilt the playing field against honest investors and undermine confidence in our markets.”
Knox, with others, operated an asset management firm based in Switzerland called Silverton, and later renamed Wintercap. Through this business, Knox helped facilitate pump-and-dump schemes by selling massive quantities of microcap securities on behalf of undisclosed control groups who secretly owned the stock through nominee entities formally owned by third parties. The shares were generally held by the nominees in blocks of less than 5% of the issuer’s total outstanding shares in order to evade the disclosure obligations and sale limitations in the federal securities laws. To generate investor demand for the shares, the undisclosed control groups simultaneously orchestrated promotional campaigns to artificially inflate the price and trading volume of the shares. Knox then funneled the proceeds of the pump-and-dumps—totaling over $137 million between just 2016 and 2018—to co-conspirators in the United States and around the world through a complex money transfer system that disguised the source and nature of the funds.
Examples of the securities that traded through Knox’s firm as part of pump-and-dumps included: Environmental Packaging Technologies, Inc. (EPTI), which Knox traded for a control group involving Morrie Tobin, Milan Patel and Matthew Ledvina and resulted in approximately $1.5 million in illicit proceeds; Garmatex Holdings, Ltd. (GRMX) and OneLife Technologies Corp. (OLMM), which Knox traded for a control group allegedly involving Luis Carrillo and resulted in approximately $5 million in illicit proceeds each; and Vitality Biopharma, Inc. (VBIO) (formerly known as Stevia First Corp.), which Knox traded for a control group allegedly involving Mike Veldhuis and generated over $17 million in illicit proceeds.
The United States has already collected and is forfeiting approximately $9 million of the forfeiture amount due from Knox, as well as numerous securities, from bank and brokerage accounts located in United States, Canada, Malta, Mauritius, the United Arab Emirates and the United Kingdom. Today, the District Court also ordered forfeiture of several bank accounts located in Switzerland.
Tobin, Patel and Ledvina each previously pleaded guilty to their roles in the EPTI pump-and-dump. In June 2020, Ledvina was sentenced to 30 months of probation. In December 2020, Patel was sentenced to 15 months in prison and Tobin was sentenced to one year and one day in prison. Patel was later granted compassionate release after six months of incarceration and ordered to serve six months of home incarceration. Tobin’s sentence was later reduced to four months in prison followed by eight months home incarceration. Tobin was also ordered to pay a $100,000 fine and forfeited $4 million, and Ledvina and Patel were ordered to a pay $50,000 fine each. They were also ordered to pay restitution, jointly and severally, in the amount of $1,908,583.
A criminal complaint is pending against Carrillo and Veldhuis for the GRMX, OLMM and VBIO pump-and-dumps, as well as against alleged additional co-conspirators Frederick Sharp and Courtney Kelln, all of whom are located outside the United States. The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. The Boston regional office of the SEC provided valuable assistance with the investigation. Assistant U.S. Attorneys James R. Drabick of the Securities, Financial & Cyber Fraud Unit and Carol E. Head, Chief of the Asset Recovery Unit, prosecuted the case.
Former plant manager at Seattle barrel cleaning company sentenced to prison and home confinementRead the Press Release
Seattle – The former plant manager of a barrel cleaning and reconditioning company, Seattle Barrel and Cooperage Company, was sentenced today in U.S. District Court in Seattle to 30 days in prison and four months of home detention for conspiracy and making a false statement to the Environmental Protection Agency, announced Acting U.S. Attorney Tessa M. Gorman. John Sanft, 58, pleaded guilty in January 2022. He was the company’s plant manager during a conspiracy to illegally dump caustic waste into the King County sewer system, which ultimately empties into Puget Sound. The company used a hidden drain, and, over ten years, lied to regulators to carry out their illegal dumping.
At today’s sentencing hearing, U.S. District Judge Richard A Jones told Sanft, “You were aware of the hidden drain at Seattle Barrel. You were willfully making false statements to regulators…. You chose to lie and lie and continue to lie.”
Last month, company owner Louie Sanft was sentenced to 18 months in prison, a $250,000 fine, and three years of supervised release. The company was sentenced to be on five years of probation.
According to records in the case and testimony at trial, Seattle Barrel’s business involves collecting used industrial and commercial drums and reconditioning and reselling them. Part of the reconditioning process involved washing the barrels in a highly corrosive chemical solution. The caustic solution has a very high pH level. Since at least 2009, Seattle Barrel has operated under a discharge permit that prohibits it from discharging wastewater over a certain level of corrosivity (a pH exceeding 12) to the sewer system. Wastewater above pH 12 will corrode the sewer system and treatment plant, and potentially cause pass-through pollution to Elliott Bay and Puget Sound.
In 2013, King County conducted covert monitoring of Seattle Barrel, and discovered the company was illegally dumping effluent with a pH above 12 in violation of its permit. King County fined the company, but the pollution did not stop. Beginning in 2016, Louie Sanft represented to King County in written monthly certifications that the company had become a “zero discharge” facility and was not discharging any industrial wastewater to the sewer.
In fact, in 2018 and 2019, additional covert monitoring by the EPA’s Criminal Investigation Division revealed that Seattle Barrel was continuing to routinely dump wastewater with a pH above 12 into the sewer system despite telling local regulators that no industrial wastewater was being discharged. Agents then installed real-time monitoring equipment that allowed them to determine when the dumping was taking place.
Early on the morning of March 8, 2019, the covert monitors indicated Seattle Barrel was dumping high-pH material into the sewer. Agents immediately executed a search warrant and entered the building. Inside, they discovered a portable pump on the floor near the tank of caustic solution. They then discovered that the pump was being used to pump solution to a nearby hidden drain that had never been disclosed to King County. The drain led directly to the sewer system.
Seattle Public Utilities says the sewer lines downstream from Seattle Barrel are prematurely damaged and will need early repair. These discharges put utility workers at risk, as such caustic chemicals can cause blindness, skin necrosis, bone damage, and even death.
Louie Sanft, the owner and operator of Seattle Barrel, was convicted after a three-week trial of conspiracy, 29 violations of the Clean Water Act for discharging pollutants to the sewer, four counts of submission of False Clean Water Act Certifications and making a false statement to special agents of the EPA. In sentencing John Sanft, Judge Jones noted that unlike Louie Sanft, John Sanft did not lie to the jury from the witness stand.
According to Seattle Barrel, the company stopped using caustic solution after EPA executed the search warrant in 2019.
This case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the King County Industrial Waste Program and the Seattle Public Utilities, Drainage and Wastewater Source Control Division.
The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Thomas Woods, and Special Assistant United States Attorneys Karla Perrin and Gwendolyn Russell, Regional Criminal Enforcement Counsel with the Environmental Protection Agency.
Former Wethersfield Resident Sentenced to Prison for Distributing NarcoticsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHANE J. SAWICKI, 29, of Farmington, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 21 months of imprisonment, followed by four years of supervised release, for distributing legitimate and counterfeit prescription pills, and other drugs.
According to court documents and statements made in court, Sawicki first came to the attention of law enforcement as a result of an investigation into a drug overdose that occurred outside of his Wethersfield apartment on September 18, 2021. Subsequent investigation revealed that Sawicki was connected to a drug trafficking organization in Illinois that was coordinating the sale and shipment of Xanax and crystal methamphetamine from California, and that he was receiving mailed packages containing Farmapram, which is a Mexican brand of alprazolam (Xanax). In April 2022, investigators conducted a court-authorized search of a package that was mailed from California to Sawicki’s Wethersfield address. The package contained two bottles containing a total of 180 Farmapram pills. Investigators also identified four similar parcels that had been mailed to Sawicki’s address prior to April 2022.
On April 29, 2022, investigators conducted a court authorized search of Sawicki’s apartment and seized thousands of counterfeit Adderall pills containing methamphetamine, a small quantity of counterfeit oxycodone pills containing fentanyl, a distribution quantity of cocaine, numerous other bags and containers of assorted pills of different colors and shapes, a container of MDMA, and three bottles of Farmapram pills. A subsequent search of Sawicki’s cell phone revealed photographs of large quantities of pills, a large amount of U.S. currency, and numerous text message conversations regarding the sale of illicit substances.
Sawicki was arrested on a federal criminal complaint on July 7, 2022. He pleaded guilty on February 16, 2023.
Sawicki, who is released on a $100,000 bond, is required to report to prison on December 15.
This investigation was conducted by the Drug Enforcement Administration’s Hartford Task Force, the U.S. Postal Inspection Service, and the Wethersfield Police Department. The DEA Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments.
This case was prosecuted by Assistant U.S. Attorney A. Reed Durham.
Former U.S. Congressional Candidate Convicted of Federal Election Campaign Act Violations and False StatementsRead the Press Release
BOSTON – A former candidate for the U.S. House of Representatives in the 3rd Congressional District of Massachusetts was convicted today by a federal jury in Boston of charges of violating the Federal Election Campaign Act and false statements.
Abhijit Das, a/k/a “Beej,” 50, of North Andover, Mass., was convicted of one count of accepting excessive campaign contributions, one count of conduit contributions, one count of conversion of campaign funds, and two counts of making a false statement. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 17, 2024. In June 2021, Das was indicted by a federal grand jury.
“Protecting our elections through campaign finance laws is crucial in defending transparency and accountability in our government and a well-functioning democracy,” said Acting United States Attorney Joshua S. Levy. “Mr. Das illegally solicited and accepted donations, used the money for a different purpose and hid his actions. He lied to the government and to the voters. He abused the campaign finance process and thought he could get away with it. Today’s speedy verdict by the jury after two-weeks of evidence should send a resounding message that the light of justice will always find its way to political candidates who break the law.”
“Today, Abhijit Das was convicted of orchestrating a calculated scheme to blatantly violate federal campaign finance laws to further his candidacy for Congress and his business ventures at the expense of voters and the electoral process,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Mr. Das solicited his friends and family for at least $125,000 in illegal campaign contributions, used that money for his own business expenses, debts, and a 100-foot super yacht, and then lied about it. The FBI will continue pursuing investigations like this one in order to ensure the continued integrity of our electoral process.”
Das was a candidate for the U.S. House of Representatives in the 3rd Congressional District of Massachusetts in the 2017-2018 election. To inflate his fundraising numbers, Das devised a scheme in or about December 2017 to solicit personal loans from friends and close associates in excess of the $2,700 legal limit. On or about Dec. 17, 2017, Das emailed a contributor asking for a friend to support his campaign to reach a specific fundraising goal of over $450,000 by the end of the year and indicated that reaching that goal might need “some engineering.” Das advised a member of his campaign that he would “aggregate” the loans into “one batch” and execute a main transfer into the campaign account.
Further, Das caused three different individuals to contribute approximately $125,000 to his campaign and structured the contributions as personal loans to a family member to circumvent Federal Election Commission (FEC) reporting requirement and contribution limits. Das falsely claimed that the funds from the excessive contributions were his own personal funds and engaged in illegal conduit contributions to his campaign.
In addition, between January and May 2018, Das withdrew approximately $314,500 in funds from his campaign account and used at least $267,000 of these funds to pay outstanding debts for his hotel business relating to vendors, the hotel’s yacht and real estate taxes unrelated to his congressional campaign. In making these withdrawals, Das sought to conceal his conversion of campaign funds by instructing bank tellers to report the withdrawals as separate withdrawal and deposit transactions, rather than direct transfers.
Das aided and abetted in the submission of false information in quarterly reports to the FEC by overstating the amount of cash-on-hand the Das-for-Congress Campaign had in its campaign bank account. For example, in June 2018, Das reported that his campaign’s total amount of cash-on-hand was approximately $440,000, when in fact the amount of cash-on-hand in the campaign bank account was less than $5,000.
In June 2023, Das was separately indicted by a federal grand jury in Boston on 10 counts of wire fraud, alleging he diverted more than $5 million in escrow funds from his clients’ accounts for personal expenses. Das has pleaded not guilty and has been on release pending trial in that case.
Each of the charges provide for a sentence of up to five years in prison, three years of supervised release and fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FBI Boston SAC Cohen and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service-Criminal Investigations, Boston Field Office made the announcement today. Assistant U.S. Attorneys Neil J. Gallagher Jr. and Elysa Wan of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
Former Spokane Resident Indicted by Grand Jury for Cryptocurrency Investment ScamRead the Press Release
Spokane, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a grand jury returned an Indictment charging Michael Joseph McElhiney, age 37, formerly of Spokane, Washington, with thirty-three counts of fraud in connection with running a cryptocurrency investment scam theft that defrauded investors of more than $350,000 between March 2021 and September 2022.
The Indictment alleges that McElhiney defrauded investors by pretending to operate a cryptocurrency investment fund known as MAC Blockchain Solutions. The Indictment alleges that McElhiney promised prospective investors that he and his purported business partners ran a successful cryptocurrency investment fund that invested in emerging cryptocurrencies and other blockchain-based projects, such as Ethereum staking and cryptocurrency liquidity pools. According to the Indictment, McElhiney promised that he would invest funds provided by investors, and manage those investments for the benefit of his clients. McElhiney promised guaranteed or variable returns depending on the supposed investment vehicle, and always promised investors that they could liquidate their investments and get their money back at any time. McElhiney then sent investors information using a platform called Coin.FYI that purported to track the progress of their investments. In actuality, the Indictment alleges, McElhiney never invested the funds provided by investors, but instead kept the funds for his own personal use, and the purported Coin.FYI accounts that McElhiney showed investors did not correspond to any actual investment funds but instead were fabricated figures intended to convince investors that McElhiney had invested their funds and that the investments were appreciating in value. The Indictment alleges that McElhiney defrauded investors of more than $350,000 in this manner, including defrauding investors not only of cash but rare art and precious metals.
“Cryptocurrency fraud is a new variation on the same old song and dance of investment fraud,” said United States Attorney Waldref. “Whether it’s cryptocurrency fraud, multilevel pyramid scams, real estate scams, old-fashioned Ponzi schemes, or other investment fraud vehicles, we will work closely with our law enforcement partners to hold fraudsters accountable when they prey on innocent members of the community in order to line their own pockets.”
The fraud charges carry maximum sentences of up to 30 years in federal prison. This case was investigated by Department of Homeland Security, Homeland Security Investigations, Spokane Resident Agency, and by the Spokane Police Department. Assistant United States Attorneys Dan Fruchter and Tyler Tornabene are prosecuting the case on behalf of the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. McElhiney, Case No: 2-23-CR-00082-TORFormer San Diego Police Officer and Three Others Sentenced for Crimes Stemming from Years-long Operation of Illicit Massage BusinessesRead the Press Release
NEWS RELEASE SUMMARY – October 13, 2023
SAN DIEGO – Peter Griffin, a retired San Diego police vice detective, attorney, and private investigator, was sentenced in federal court today to 33 months in custody for his central role in a conspiracy to operate five California- and Arizona-based illicit massage businesses that profited for years by selling commercial sex under the guise of offering therapeutic massage services.
Griffin’s three co-defendants - Kyung Sook Hernandez, Yu Hong Tan, and Yoo Jin Ott - who managed the illicit massage businesses in Griffin’s network and actively concealed the scheme from law enforcement, were each sentenced to six months in custody.
According to court documents and admissions in plea agreements, the defendants owned and operated “Genie Oriental Spa,” “Felicita Spa,” “Blue Green Spa,” “Maple Spa,” and “Massage W Spa,” located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022. The criminal scheme included incorporating their businesses with state agencies, managing the businesses’ illicit proceeds, advertising commercial sexual services online, recruiting and employing women to perform commercial sex services in the businesses, and benefiting financially from the illegal enterprises.
The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to facilitate the illegal businesses. Griffin oversaw nearly every aspect of the illicit businesses, making himself indispensable to their operation, and assumed the role of “boss.”
Through the course of the scheme, the defendants exploited the victims, mostly vulnerable, non-English speaking immigrants from Korea and China with limited employment opportunities and financial resources; pressured and expected the employees to perform commercial sex services inside the businesses; and made substantial financial profits from the illegal commercial sexual activity. When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.”
Griffin, who left the department in 2002, previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit. Throughout the nine-year criminal scheme, Griffin used the experience and skills he acquired through his work as a vice detective – skills honed by his education as an attorney and work as a private investigator – and his reputation as a former police officer to help the businesses evade law enforcement; conceal evidence; pressure employees to engage in commercial sex; maintain a façade of legitimacy; and thwart regulatory inspections, investigations, and any official action against the businesses.
According to his plea agreement, on several occasions, Griffin used his status as a former law enforcement officer to falsely assure local authorities that his businesses would be operated legitimately. On another occasion, Griffin flashed his badge to a local officer responding to a citizen complaint regarding one of his illicit businesses. Additionally, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about working at the illicit massage business. Griffin’s co-defendants similarly informed employees of Griffin’s law enforcement background and his resulting “connections” and promised he would protect the illegal businesses from law enforcement detection. Griffin also abused resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses.
“Illicit massage businesses hide in plain sight in many communities in America, including our district,” said U.S. Attorney Tara K. McGrath. “Operators of these businesses often profit through exploitation. For years, Peter Griffin used his connections as a former police officer for his own criminal profiteering. The U.S. Attorney’s Office is committed to prosecuting these kinds of offenses, protecting our communities, and ensuring that legitimate local businesses are not tarnished by criminal activity.”
“No one is above the law. I’m appalled that someone who once took an oath to protect our community could prey on the vulnerable,” said San Diego Chief of Police David Nisleit. “I’m proud of our own SDPD officers who helped make this investigation possible and I commend our partner agencies for their diligence in holding Peter Griffin and his accomplices accountable. This is an important step toward justice for the survivors of these crimes.”
“Law enforcement professionals swear an oath to protect and defend our communities, and the spirit of that oath should live on even when we stop carrying a badge,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Griffin preyed on people who should have felt safer because of his presence. He and his co-conspirators failed in their attempts to conceal their illicit activities because of our special agents’ unique ability to follow the money and a strong cross-agency effort to find the evidence to bring these predators to justice.”
“Peter Griffin abused and exploited vulnerable women by pressuring them into providing commercial sex for profit while taking advantage of his status in the community,” said Chad Plantz, special agent in charge for HSI San Diego. “This sentence sends a clear message to those who mistakenly believe they can get away with such repugnant crimes. HSI, in collaboration with our law enforcement partners, will continue to work vigorously to bring to justice those who exploit and victimize vulnerable members of our community.”
This case is being prosecuted by Assistant U.S. Attorney Jill S. Streja, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit.
DEFENDANTS Case Number 22cr1824-JO
Peter Griffin 79
Kyung Sook Hernandez 59
Yu Hong Tan 57
Yoo Jin Ott 46
SUMMARY OF CHARGES
Conspiracy, Interstate and Foreign Travel or Transportation in Aid of Racketeering (ITAR),
Maximum Penalty: Five years in prison, $250,000 fine
Conspiracy to Commit Wire Fraud
Maximum Penalty: Thirty years in prison, $1 million fine
Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity
Maximum Penalty: Ten years in prison, $250,000 fine or twice amount of criminally derived property
Misprision of a Felony
Maximum Penalty: Three years in prison, $250,000 fine
AGENCIES
Homeland Security Investigations
Internal Revenue Service Criminal Investigation
San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable. The task force is comprised of numerous federal, state, and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program.
U.S. Department of Justice, Money Laundering Asset Recovery Section, Special Financial Investigations Unit
Federal Bureau of Investigation
San Diego Police Department
San Diego Sheriff’s Department
Escondido Police Department
San Diego County District Attorney’s Office
Tempe, Arizona Police Department.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Former Prison Guard Pleads Guilty to Using Excessive Force, Obstructing JusticeRead the Press Release
EAST ST. LOUIS, Ill. – A former correctional officer at Pinckneyville Correctional Center pled guilty to federal charges for beating a restrained inmate.
Christian L. Pyles, 25, of Christopher, Illinois, pled guilty in a U.S. District courtroom to violating the inmate’s civil rights by using excessive force under color of law and conspiracy to obstruct justice by falsifying incident reports.
Former officer Cord A. Williams, 35, of Vergennes, Illinois, was also charged in the indictment and pled guilty on July 18. The charges arose from an incident in which an inmate was beaten while fully restrained in handcuffs and leg irons on April 24, 2022.
According to court documents, the beating occurred to punish the inmate, because the inmate had previously punched a different correctional officer. The act of retaliation caused the inmate to suffer severe injuries including facial fractures, multiple lacerations requiring 25 stitches, a chipped tooth and lung damage.
As part of their official duties, correctional officers are required to write incident reports to accurately document any unusual incidents they observe or are reported to them, including disturbances or the use of force. The conspiracy count states Williams, Pyles and others colluded to file false reports about the incident and undermine the amount of force used.
Pyles is scheduled to be sentenced on Jan. 23, 2024, and the sentence hearing for Williams is set for Nov. 6, 2023. The deprivation of civil rights charge is punishable by up to 10 years in federal prison while the conspiracy to obstruct justice charge can result in up to five years imprisonment.
The Illinois State Police are leading the investigation, and Assistant U.S. Attorney Steven D. Weinhoeft is prosecuting the case.
Former Postal Employee Pleads Guilty to Delaying and Stealing the Contents of U.S. MailRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that DAZMON DYER, age 30, a resident of New Orleans, pleaded guilty on October 12, 2023 to a two-count indictment charging him with delay of U.S. mail and theft of U.S. mail matter by a postal employee, in violation of Title 18, United States Code, Sections 1703 and 1709.
DYER faces a maximum sentence of up to five years imprisonment, up to a $250,000.00 fine, up to three years of supervised release, and a mandatory $100.00 special assessment fee as to both counts.
According to court records, DYER stole U.S. currency and gift cards from First-Class mail which had come into his possession and intended to be delivered by him as a U.S. Postal Service employee.
United States District Judge Eldon E. Fallon will sentence DYER on January 18, 2024.
The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant United States Attorney Troy L. Bell of the General Crimes Unit is in charge of the prosecution.
Former Nursing Home Worker Charged with Wire Fraud in “Ghost” Employee Fraud SchemeRead the Press Release
Washington – A federal grand jury in Chicago returned an indictment charging a former nursing home employee with seven counts of wire fraud.
According to court documents, Alisha Richardson, 44, of Chicago, devised a scheme to defraud her employer, a Chicago-area nursing home, of funds by falsifying records to generate payments to individuals who never worked at the facility (so-called “ghost” employees). The indictment alleges that, as part of the scheme, Richardson created false records to make it appear as though the individuals were employed as Certified Nursing Assistants, when in fact they were not working at the nursing home. The indictment further alleges that Richardson logged false hours for these “ghost” employees, which caused the nursing home to issue paychecks. According to the indictment, some “ghost” employees cashed the checks and shared the proceeds with Richardson. The indictment further alleges that on other occasions Richardson forged endorsement signatures for the individuals and deposited the paychecks into her own bank accounts. As a result of the scheme, the nursing home paid out over $100,000 for work that was never performed.
“These charges reflect the department’s commitment to hold criminals accountable for their wrongdoing,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We thank the FBI and the Department of Health and Human Services Office of Inspector General for their tireless efforts in investigating this case.”
“The FBI and its partners work tirelessly to ensure that those who engage in illegal activity do not go unpunished,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, and Services Branch. “This indictment shows our commitment to that sentiment and should deter others from engaging in fraudulent activities.”
“Individuals who fraudulently obtain funds that were otherwise intended to support the delivery of health care services unlawfully redirect valuable resources away from people in need of medical care,” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Region. “HHS-OIG remains committed to working together with our law enforcement partners to identify and investigate those who allegedly engage in fraud targeting our federal health care programs.”
The FBI and the HHS-OIG investigated the case.
The case is being prosecuted by Senior Trial Attorneys Raquel Toledo and James T. Nelson of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Jason Julien for the Northern District of Illinois.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentFormer Murrieta Police Detective Pleads Guilty to Accepting Illicit Benefits from Foreign Businessperson in Exchange for Immigration HelpRead the Press Release
RIVERSIDE, California – A former detective with the Murrieta Police Department pleaded guilty today to a federal criminal charge for soliciting bribes from a foreign businessperson who was seeking immigration benefits in the United States.
Paul John Gollogly, 74, of Temecula, pleaded guilty to one count of bribery.
According to his plea agreement, Gollogly began working for the Murrieta Police Department (MPD) in March 2013 to lead its purported anti-money laundering program. In this role, he handled and directed confidential informants (CI) registered with the department, including non-U.S. citizens who needed authorization from the U.S. government to enter and work in the United States.
In April 2013, Gollogly registered an individual – identified in court documents as “Person A” – as a CI with MPD. Person A was a foreign national and a wealthy business person had significant business interests in multiple countries including the United States. Person A owned businesses in the United States, and in other countries as well.
While previously employed at a police department in Florida, Gollogly had registered Person A as a CI with that police department. Person A was neither a U.S. citizen nor had legal permanent resident status, commonly known as holding a “green card.”
From April 2013 to February 2020, Gollogly helped Person A obtain various immigration benefits, including authorization from the U.S. Department of Homeland Security (DHS) to allow Person A to enter and work in the United States for one year at a time and facilitation of Person A’s physical entry into the United States. Gollogly also attempted to assist with Person A’s permanent residency application.
Gollogly wrote letters of support to DHS for Person A’s approvals to enter the United States, falsely stating that Person A’s work as a CI resulted in arrests, seizures of large amounts of money and drugs, and additional investigations. In fact, the information Person A provided MPD resulted in none of these things.
Also, on at least 25 occasions, Person A texted Gollogly to inform him of Person A’s arrival in the United States, including Person A’s arrival date and location, and flight information in case Person A got held up at a port of entry by immigration authorities. On at least five occasions, after receiving notice of Person A’s arrival at the San Ysidro Port of Entry at the U.S.-Mexico border, Gollogly personally drove to San Ysidro to meet Person A and facilitate Person A’s incident-free reentry into the United States.
In exchange for this help with immigration authorities, Gollogly solicited and received benefits from Person A, including:
- receiving tickets to shows in New York and Miami;
- the hiring of a Gollogly family friend to work at one of Person A’s businesses and making efforts to help a Gollogly relative secure a job;
- arranging for hotel stays for two close Gollogly relatives and another Gollogly friend, including one July 2014 stay in which – at Gollogly’s request – Person A had wine and flowers inside the hotel room of one of the close relatives;
- paying four months’ rent in 2018 and 2019 for a Gollogly relative; and
- paying for dinner at an upscale restaurant for Gollogly and four of his relatives in December 2019.
United States District Judge Sunshine S. Sykes scheduled a January 19, 2024 sentencing hearing, at which time Gollogly will face a statutory maximum sentence of 10 years in federal prison. Prosecutors have agreed to seek no more than 18 months’ imprisonment for Gollogly.
The FBI investigated this matter, with assistance from the U.S. Immigration and Customs Enforcement, Office of Professional Responsibility.
Assistant United States Attorneys Julius J. Nam of the Public Corruption and Civil Rights Section and Courtney N. Williams of the Riverside Branch Office are prosecuting this case.
Former Greenup County Sheriff Sentenced for Federal Program FraudRead the Press Release
FRANKFORT, Ky. — The former Greenup County Sheriff, Keith Cooper, 70, was sentenced to 13 months in federal prison on Friday, by U.S. District Judge Gregory Van Tatenhove, for one count of mail fraud and one count of federal program fraud.
According to his court documents, Cooper was the Greenup County Sheriff for approximately 20 years, until retiring in December 2018. Cooper’s position gave him access to funds the Sheriff’s Office seized from drug trafficking investigations, including a bank account designed to hold those proceeds. Over a four-year period, Cooper made numerous unauthorized cash withdrawals and unlawfully retained proceeds from drug trafficking investigations instead of depositing them into the account. Cooper wrongfully took $58,230 in proceeds, which included $46,100 in unexplained cash withdrawals from the bank account and $12,130 in forfeited proceeds that should have been deposited. Cooper also wrongfully took $29,458.87 in ammunition paid for with Sheriff’s Office funding and wrongfully used county funds to pay for $1,837.26 in fuel used during his personal trips in 2018.
Under federal law, Cooper must serve 85 percent of his prison sentences. Upon his release, he will be under the supervision of the U.S. Probation Office for one year. Cooper was also ordered to pay a $10,000 fine.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; and Daniel Cameron, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by the FBI and the Kentucky Attorney General’s Department of Criminal Investigation. The United States was represented by Assistant U.S. Attorney Andy Boone.
-END-
Former Chairman of 1 Global Pleads Guilty to Running $250 Million Securities Fraud SchemeRead the Press Release
MIAMI – Carl R. Ruderman, 82, former chairman of 1 Global Capital LLC (“1 Global”) pled guilty yesterday to a $250 million securities fraud scheme. Four of Ruderman’s co-conspirators have already pleaded guilty for their role in this fraud, including two lawyers who provided him with false legal cover to skirt federal securities laws.
Ruderman pled guilty to conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371. In his plea agreement, Ruderman agreed to a sentence of 5 years, the statutory maximum, and to a forfeiture money judgment of over $250 million.
1 Global was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). Ruderman was the chairman of 1 Global.
Ruderman admitted that he and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. According to plea documents, investors were falsely told that 1 Global had audited financials by a public accounting firm, that the investor’s money would be spent on the MCAs, and that they could expect double-digit returns on their investments, among other things.
Ruderman admitted that he spent 1 Global’s investor’s money on credit card payments, vacation travel, insurance payments for his art collection and valuable jewelry, drivers, nannies, housekeepers, mortgage payments for his house, tuition, and payments for a luxury car. Ruderman also admitted that he diverted 1 Global investor money to businesses benefitting him and his family, without the investors’ knowledge.
Questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission. Ruderman admitted in plea documents that he knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Ruderman also admitted that he directed a lawyer, Jan Atlas, to author two opinion letters in 2016 containing false information that allowed 1 Global to skirt federal securities laws.
Four of Ruderman’s co-conspirators pleaded guilty for their roles in the fraud.
Alan G. Heide, 65, of Lake Worth, Florida, the former 1 Global chief financial officer, pleaded to a single count information, charging him with one count of conspiracy to commit securities fraud (case no. 19-cr-60231), and was sentenced to 60 months in prison by U.S. District Judge Roy K. Altman. Judge Altman also ordered Heide to pay over $57 million in restitution to the victims of the scheme.
Andrew Dale Ledbetter, 81, of Fort Lauderdale, Florida, pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 20-cr-60103), and was sentenced by Judge Altman to 60 months in prison. Judge Altman also ordered Ledbetter to pay over $148 million to the victims of the scheme.
Steven Allen Schwartz, 78, of Delray Beach, Florida, pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 20-cr-60003), and was sentenced to 24 months in prison by Judge Altman. Judge Altman also ordered Schwartz to pay over $36 million in restitution to the victims of the scheme.
Jan Douglas Atlas, 78, of Fort Lauderdale, Florida, pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 19-cr-60258), and was sentenced to eight months in prison by Judge Altman. Judge Altman also ordered Atlas to pay over $29 million in restitution to the victims of the scheme.
1 Global filed for bankruptcy on July 27, 2018. As of that time, according to documents from related cases, 1 Global had more than 3,400 investors and had raised more than $250 million during the scheme. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
The SEC previously filed civil fraud actions related to the 1 Global Fraud, captioned, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.); SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.); SEC v. Jan Douglas Atlas, 19-62303-CV-WPD (S.D. Fla.); SEC v. Steven A. Schwartz, Case No. 20-80008-CV-DMM (S.D. Fla.); and SEC v. Andrew Dale Ledbetter, Esq., Case No. 20-61972-CV- (S.D. Fla.).
Information about the related cases can be found here: https://www.justice.gov/usao-sdfl/1Global-Capital.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Matthew D. Line, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, made the announcement.
U.S. Attorney Lapointe commended the investigative efforts of FBI Miami, IRS-CI Miami, and the FDIC-OIG, Atlanta Region, for their assistance. Assistant U.S. Attorneys Elizabeth Young and Amanda Perwin are prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-CR-20303-CMA.
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Former CEO Pleads Guilty to Causing the Distribution of Adulterated and Misbranded Medical Devices Intended to Treat Migraine HeadachesRead the Press Release
Mark Wright, 67, pleaded guilty on Oct. 11 in federal court to misdemeanor charges of causing the introduction of misbranded and adulterated devices into interstate commerce.
According to documents filed with the court, from July 2013 to July 2017, Wright served as the chief executive officer of Dolor Technologies Inc., a Utah-based medical device company. Dolor sold a device known as the SphenoCath, which was intended to treat migraine headaches by administering nerve blocks to the sphenopalatine ganglion (SPG), a collection of nerves located in the midface of the skull.
As part of his guilty plea, Wright admitted that Dolor did not seek approval or clearance from the Food and Drug Administration (FDA) to distribute the SphenoCath for this intended use, rendering the SphenoCath devices adulterated and misbranded under the Federal Food, Drug and Cosmetic Act. Wright also admitted that, while FDA had recommended in April 2014 that Dolor proceed with investigational studies regarding the SphenoCath’s safety and effectiveness, Dolor never conducted any such study. Instead, Wright and Dolor continued to market the SphenoCath with the intention that it be used to treat migraine headaches by administering SPG nerve blocks. Among other things, Wright provided healthcare providers with marketing materials and unsolicited directions for unapproved use of the SphenoCath.
U.S. Magistrate Judge Cecilia M. Romero presided at the plea hearing and set sentencing for Nov. 8.
“Patients must be able to trust that they are being treated with medical devices that have been shown to be safe and effective,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to take action against companies and individuals that put public health at risk by not complying with the law.”
“The United States will continue to prosecute those who flout the Food, Drug, and Cosmetic Act by marketing unapproved, adulterated, and misbranded drugs and devices to the public,” said U.S. Attorney Trina A. Higgins for the District of Utah. “These individuals pose a danger to the community and put the public’s health and safety at risk.”
“U.S. consumers rely on the FDA to ensure that their medical devices are safe and effective for their intended uses,” said Special Agent in Charge George M. Scavdis of the FDA’s Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who threaten the health of consumers by evading FDA requirements.”
The FDA’s Office of Criminal Investigations investigated the case.
Trial Attorneys David Hixson and Emily C. Powers of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Jacob Strain for the District of Utah prosecuted the case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at www.justice.gov/usao-ut.
Former Army Reservist Pleads Guilty to Conspiracy to Commit Theft of Government FundsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that former United States Army reservist CHRISTOPHER O’CONNOR pled guilty to conspiracy to commit theft of government funds. O’CONNOR stole $18,825.83 from the United States Department of the Army by claiming reimbursement for the performance of military funeral honors ceremonies that never occurred. Through his former position as an Army pay technician, O’CONNOR submitted a total of $101,858.19 in fraudulent military funeral honors payment requests for himself and others.
The National Defense Authorization Act of 2000 authorizes military funeral honors (MFH) for active-duty soldiers, retirees, and veterans. At a family’s request, eligible persons can receive military funeral honors, including the folding and presenting of the United States flag and the playing of “Taps.”
According to court documents, starting in or about January 2013, and continuing until in or about August 2016, O’CONNOR, and co-conspirators conspired to obtain money from the United States under false pretenses by submitting false applications for MFH payment requests for services that had not been performed, to the Department of the Army. O’CONNOR proposed submitting false MFH pay requests in the co-conspirators’ names in exchange for each sharing their proceeds with O’CONNOR. In addition to receiving a split of the fraudulent MFH payments from the co-conspirators, O’CONNOR also submitted and received approximately $18,825.83 in fraudulent MFH payment requests for himself. As a result of this conspiracy, the United States government was defrauded out of approximately $101,858.19.
O’CONNOR faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Army Criminal Investigation Command, including Special Agents Dustin Stevens, John Hiniker, Jeffrey Riedeman, and Denny Richter. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.
Florissant Man Sentenced to 135 Months in Prison for Five Armed RobberiesRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Friday sentenced the armed robber of five Florissant, Missouri businesses to 135 months in prison.
Judge Fleissig also ordered Kevin E. West Jr., 23, of Florissant, to pay $7,022 in restitution.
West admitted stealing the cash from two registers and a safe at a Dollar Tree store at 700 North Lindbergh Boulevard on May 26, 2021. On Dec. 1, 2021, West robbed a different Dollar Tree at 14020 New Halls Ferry Road by demanding cash from a register and the safe at gunpoint. On Jan. 2, 2022, West robbed cash from the register at the Subway at 2544 North Lindbergh Boulevard and three days later he robbed a GameStop at 14031 New Halls Ferry Road. On Jan. 28, 2022, he robbed a different Subway, at 8444 North Lindbergh Boulevard, and threatened to shoot the clerk if she didn’t hurry up and hand over money from the cash register, his plea agreement says.
West pleaded guilty in June to five counts of robbery and one count of possession and brandishing a firearm in furtherance of a crime of violence.
This case was investigated by the Florissant Police Department and the FBI. Assistant U.S. Attorney Linda Lane prosecuted the case.
Fayetteville Man Sentenced for Lying to FAARead the Press Release
SYRACUSE, NEW YORK – Noah Felice, age 71, was sentenced to one month incarceration for lying to the Federal Aviation Administration (FAA), announced United States Attorney Carla B. Freedman, Christopher A. Scharf, Special Agent in Charge, Northeastern Region of the U.S. Department of Transportation-Office of Inspector General, and Christopher F. Algieri, Special Agent in Charge of the Northeast Field Office of the Department of Veterans Affairs-Office of Inspector General.
Felice was previously convicted after a jury trial in December 2022. At the trial, evidence was presented that proved that in September 2017, Felice submitted to the FAA an application for an airman medical certificate, which is a certificate demonstrating that a pilot is medically fit to fly an aircraft. On the application, Felice stated that he had no history of criminal convictions and was not receiving medical disability benefits. In fact, Felice had four prior misdemeanor convictions, two of which were for lying about his criminal history on state and local forms. Felice also was receiving several thousand dollars a month from the Department of Veterans Affairs because he had been diagnosed with post-traumatic stress disorder.
United States District Court Judge Glenn T. Suddaby also sentenced Felice to serve three years of supervised release following his term of incarceration. As a condition of that release, Felice will be required to remain in home confinement for three months.
This case was investigated by the Department of Transportation-Office of Inspector General and the Department of Veterans Affairs-Office of Inspector General, and was prosecuted by Assistant U.S. Attorneys Thomas Sutcliffe and Paul Tuck.
Fairfield Man Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — On Sept. 28, 2023, a federal grand jury returned a two-count indictment against Steven Daniel Miller, 47, of Fairfield, charging him with bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
Yesterday Miller made his first appearance in federal court on the case.
According to court documents, in October 2018, Miller used another person’s social security number to complete a credit application with a bank in order to purchase a 2018 Dodge Challenger Hellcat at a car dealership in Yuba City. Based on the false information on the credit application, the bank approved the loan and paid approximately $75,754 to the car dealership. Miller left the dealership with the vehicle, and it was subsequently seized by law enforcement.
This case is the product of an investigation by the U.S. Secret Service with assistance from the California Highway Patrol, the Solano County Sheriff’s Office, the Rocklin Police Department, the Gilroy Police Department, and the Fairfield Police Department. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
If convicted, Miller faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fairfield County man pleads guilty to child pornography and sextortion crimesRead the Press Release
COLUMBUS, Ohio – A Fairfield County, Ohio man pleaded guilty in U.S. District Court to crimes related to child pornography and sextortion.
Devin Bailey, 27, of Millersport, Ohio, admitted to distributing child pornography of a minor victim and using those images, in addition to others, in interstate communications to extort an adult victim for images of herself.
According to his plea agreement, Bailey used multiple personas online to solicit sexually explicit photographs of the adult victim and then used the images he obtained to threaten and extort her for more explicit photographs of herself.
Bailey also sent additional messages to the adult victim that depicted pornographic images of nude minor females exposing their genitalia to the camera or engaged in acts of masturbation. After receiving these images from Bailey, the adult victim recognized one of the minor females depicted in the images she received. That minor female was approximately 12 years old at the time the images and videos were created. The minor child believed she had sent the explicit images and videos to a female in Florida, who in reality was another persona of Bailey’s. These photos of the nude minor were then kept by Bailey for over five years and sent to the adult victim to coerce her into taking sexually explicit photographs of herself for Bailey.
Bailey also threatened to distribute the child pornography of the known minor female to family members of the adult victim and across the internet if the adult victim did not comply with his demands.
In May and June 2022, Bailey also used numerous email addresses, cell phone numbers and Snapchat accounts to harass the adult victim, threatening to share pornographic images of her as well. He said if the victim did not send him new explicit photos or videos, he would use the older materials against her.
Bailey’s threats persisted for weeks. He consistently and aggressively messaged the adult victim and, when she indicated she would involve law enforcement, Bailey responded, “Go ahead, they are untraceable numbers, and I can get hundreds more lol.”
A forensic review of Bailey’s electronic devices revealed that they contained approximately 200 images and 20 videos of child sexual abuse material.
Distributing child pornography is a federal crime punishable by a range of five to 20 years in prison. Interstate communications with the intent to extort carries a potential penalty of up to two years in prison. Congress sets statutory sentences, and sentencing of the defendant will be determined by the Court at a later hearing based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Lancaster Police Chief Nicholas H. Snyder announced the guilty plea entered on October 11 before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Enid Man Sentenced to Serve a Year in Federal Prison for Threatening Government OfficialsRead the Press Release
OKLAHOMA CITY – Today, TYLER JAY MARSHALL, 36, of Enid, was sentenced to serve 12 months and one day in federal prison for threatening government officials, announced U.S. Attorney Robert J. Troester.
On June 6, 2023, a federal grand jury returned a two-count indictment against Marshall. Count 1 charged him with threatening to murder a United States official. Count 2 charged him with interstate transmission of threatening communications. According to an affidavit filed in support of the criminal complaint, on May 15, 2023, the FBI received information that Marshall had made multiple posts on Twitter threatening to kill several government officials and their families. The threats targeted Oklahoma Governor Kevin Stitt, Arkansas Governor Sarah Huckabee Sanders, and United States Senator Ted Cruz.
On August 2, 2023, Marshall pleaded guilty to Count 2. As part of his plea, Marshall admitted that he knew his posts would be perceived as real threats.
At the sentencing hearing on Friday, U.S. District Judge David L. Russell sentenced Marshall to serve 12 months and one day in federal prison, followed by three years of supervised release. In announcing the sentence, Judge Russell noted Marshall’s prior military service and his apparent lack of actual intent to carry out the threats. However, the Court also noted the need to deter others from making similar unlawful online threats.
This case is the result of an investigation by the FBI Oklahoma City Field Office, with assistance from the Oklahoma Highway Patrol and the Enid Police Department. Assistant U. S. Attorney Mark Stoneman prosecuted the case.
Reference is made to public filings for more information.
Eastern Shore Man Sentenced to 10 Years in Federal Prison for Coercion and Enticement of a MinorRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander today sentenced Richard Wesley Robinson, age 74, of Cambridge, Maryland, to 10 years in federal prison, followed by 25 years of supervised release, for enticement and coercion of a minor to engage in sexual activity. Judge Hollander also ordered that, upon his release from prison, Robinson must register as a sex offender in the places where he resides, is an employee, and is a student, pursuant to the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore.
According to his guilty plea, prior to July 17, 2018, Robinson communicated with a 12-year-old boy, using mobile phones and the internet to arrange a meeting for sexual activity. On July 17, 2018, Robinson met the victim at a park in Easton, Maryland, where Robinson engaged in sexual activity with the child. Robinson used his cellphone to document the sexual abuse of the minor victim.
In July of 2021, the National Center for Missing and Exploited Children (“NCMEC”) received a CyberTip report from Snapchat, reporting that Robinson’s Snapchat account had uploaded suspected child pornography. Law enforcement later executed a search at Robinson’s residence and seized two cellular phones and additional electronic media. Investigators forensically examined the content of the phones seized from Robinson’s residence and reviewed the content of his Snapchat and Gmail accounts after obtaining search and seizure warrants. The sexually explicit images that Robinson produced of the victim on July 17, 2018 were found on both of Robinson’s cell phones. After his abuse of the victim, Robinson sent text messages to others describing his sexual abuse of the boy and used Snapchat to distribute the sexually explicit images he took of the victim to others. In addition to distributing sexually explicit images of the victim to other internet users, Robinson also engaged in sexually explicit communication regarding minors. During these communications, Robinson discussed the sexual abuse of children, including a prepubescent child who was being cared for by another Snapchat user. On June 9, 2021, Robinson received sexually explicit images depicting the sexual abuse of a two-year-old male victim from that Snapchat user. After receiving the images, Robinson asked the Snapchat user about the abuse and encouraged the Snapchat user to “take some pics.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the HSI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Eagle Butte Woman Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on October 10, 2023.
Irene Guerrero, age 39, was sentenced to four years in federal prison, three years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Guerrero was indicted by a federal grand jury in August of 2022. She pleaded guilty on June 14, 2023.
The conviction stemmed from a drug conspiracy beginning in February 2021 and continuing until June 2022. Guerrero was involved with several other individuals to distribute methamphetamine in and around the Cheyenne River Sioux Indian Reservation. Guerrero received distributable quantities of methamphetamine from others which she then sold. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Guerrero was immediately remanded to the custody of the U.S. Marshals Service.
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Dupree, SD Man Sentenced for Second Degree MurderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Dupree, South Dakota, man convicted of Second Degree Murder was sentenced on October 11, 2023, by Chief Judge Roberto A. Lange, U.S. District Court.
Stuart Cochran, Sr., age 50, was sentenced to 16 years in federal prison, four years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Cochran was indicted by a federal grand jury in July 2022. He pleaded guilty on July 11, 2023.
On the morning of June 25, 2022, Stuart Cochran, Sr. was driving home to Dupree when he observed the victim walking on the shoulder of US Hwy 212 near Eagle Butte, SD. Cochran bore a grudge against the victim based on past altercations. Cochran pulled up next to the victim. The two exchanged profanities. Cochran drew a pistol, leveled it at the victim and pulled the trigger. When the gun did not fire, Cochran racked the pistol slide and pulled the trigger again, shooting the victim in the face and killing him.
This case was investigated by the FBI and Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Cochran was immediately remanded to the custody of the U.S. Marshals Service.
Dominican Man Pleads Guilty to Illegally Reentering the United States and Distributing FentanylRead the Press Release
BOSTON – A Dominican man pleaded guilty today in federal court in Boston to reentering the United States and distributing fentanyl after previously being deported.
Juan Carlos Santos-Ocasio, a/k/a “Cristhian Aybar-Done,” 40, was indicted on one count of distribution and possession with intent to distribute 40 grams or more of fentanyl and one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 10, 2024. Santos-Ocasio was initially arrested and charged in November 2022 and subsequently indicted by a federal grand jury in December 2022
In October 2007, Santos-Ocasio was arrested in the Bronx, N.Y., on heroin distribution conspiracy charges. Santos-Ocasio is a citizen of the Dominican Republic and did not have legal authority to be present in the United States. In November 2008, Santos-Ocasio pleaded guilty in the Eastern District of New York to heroin distribution conspiracy and was subsequently sentenced to 37 months in prison. He was removed from the United States upon completion of his sentence in the summer of 2010.
Sometime after his removal, Santos-Ocasio reentered the United States unlawfully. In November 2022, he was arrested in Lawrence for allegedly reentering the United States without authorization. In addition to being in the U.S. without authorization, Santos-Ocasio also distributed 40 grams or more of fentanyl.
The charge of distributing and possessing with intent to distribute 40 grams or more of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, up to five years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Kaitlin Brown of the Worcester Branch Office is prosecuting the case.
District Man Sentenced to Seven-Year Prison Term for Metro StabbingRead the Press Release
WASHINGTON – Christopher Wade, 40, of Washington, D.C., was sentenced on Wednesday, October 11, 2023, to 84 months in prison for stabbing a woman as she descended into the Potomac Avenue Metro Station and for robbing another woman at knifepoint in the Eastern Market Metro Station, announced U.S. Matthew M. Graves. Mr. Wade pleaded guilty, in the Superior Court of the District of Columbia, in August of 2023, to one count of assault with a dangerous weapon and one count of robbery.
According to the government’s evidence, just after 10 p.m. on June 25, 2023, Wade saw a woman descending, alone, into the Eastern Market Metro Station. Wade waited for her at the bottom of the escalator, pushed her into a wall, and demanded her property while wielding a knife. Wade fled the Metro after stealing her phone and other property. Five days later, on June 30, 2023, Wade walked into the Potomac Avenue Metro Station just before noon. A woman stood on the escalator, alone, and Wade approached her from behind, grabbed her by the neck, and demanded her property. He then pushed her down to the stairs of the escalator and stabbed her in the arm before fleeing up the escalator and out of the Metro. After review of the surveillance footage from both incidents, Metro Transit Police Department officers were able to locate Wade and confirm he was the suspect from both incidents.
This case was investigated by the Metropolitan Transit Police Department. It was prosecuted by Assistant U.S. Attorney Katharine Yaske, of the U.S. Attorney’s Office.
District Man Pleads Guilty to Ongoing Acts of Child Sexual AbuseRead the Press Release
WASHINGTON - Tyrone Wiggins, 66, of Washington, D.C., pleaded guilty today to second-degree child sexual abuse, admitting that over an eight-year period, he regularly engaged in sexual acts with a minor. The plea was announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith of the Metropolitan Police Department (MPD).
Wiggins pleaded guilty in the Superior Court of the District of Columbia. He is to be sentenced on January 5, 2024, by the Honorable Rainey Brandt.
According to the facts agreed to by both parties, between May 11, 1999 and October 20, 1999, when the victim was 13-years old and Wiggins was 42, Wiggins engaged in penetrative sexual acts with the victim on multiple, regular occasions. Wiggins also admitted that he had abused the victim when the victim was 10-years old; and that he continued doing so until she was 18-years old. All of the sexual abuse took place in the District of Columbia.
This case was investigated by the Metropolitan Police Department.
This case was prosecuted by Assistant U.S. Attorney Peter V. Taylor and Assistant U.S. Attorney Amy Zubrensky, who assisted on complex legal issues and in negotiating the plea agreement.
Detroit Man Sentenced to 10 Years Along with His South Dakota Co-Conspirator in Meth ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Karen E. Schreier has sentenced a Detroit, Michigan man and a Sioux Falls, South Dakota man, convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on September 29, 2023.
Vernon Lee Mason, Jr., 31, and his co-conspirator, Demetrius Jackson, 42, were both sentenced to ten years in federal prison, followed by 5 years of supervised release. They were both also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mason, Jr. and Jackson were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in March of 2022. Mason, Jr. pleaded guilty on July 17, 2023, and Jackson pleaded guilty on November 8, 2022.
On November 19, 2021, law enforcement stopped the vehicle in which Jackson and Mason, Jr. were traveling. They searched the vehicle and found approximately 57 grams of methamphetamine, which the two intended to distribute to others. Investigators then obtained a search warrant for Jackson’s residence and found an additional 755.5 grams of methamphetamine intended for distribution. Mason was also captured on a wire intercept discussing drug transactions with a local drug dealer from Trent, South Dakota.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Police Department. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Mason, Jr. and Jackson were immediately remanded to the custody of the U.S. Marshals Service after their sentencings.
Del Rio Armed Career Criminal Pleads Guilty to Possessing AmmunitionRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Kenneth Lorenzo Jackson (48, Del Rio) has pleaded guilty to possessing ammunition as a convicted felon. Jackson faces a mandatory minimum penalty of 15 years in federal prison under the Armed Career Criminal Act. A sentencing date has not been set.
According to the plea agreement, on May 12, 2022, at approximately 3:45 a.m., a Tampa Police Department (TPD) patrol officer on patrol near Bush Boulevard and 14th Street North stopped Jackson, who was driving a grey Dodge Caliber, for not to wearing a seatbelt. The officer requested Jackson’s license, registration, and proof of insurance. Jackson grabbed a backpack from the passenger side footwell and searched for his documents. As the officer stood over the vehicle’s open window, he looked into the bag which Jackson was rummaging through and saw the handle of a firearm inside the bag. The officer reached into the vehicle to position the backpack opening towards the driver’s side window to confirm what he saw, then grabbed the backpack immediately from Jackson’s hands and Jackson was removed from the vehicle and detained by another TPD officer.
Officers discovered numerous plastic baggies containing a white rock-like substance in Jackson’s pocket during a safety pat down. The substance was Dimethylpentylone, a Schedule I controlled substance. Inside the backpack, officers discovered a Rohm Gesellschaft RG-12 .22 caliber firearm and six rounds of ammunition. An inventory search of the vehicle also revealed a metal box that contained a small amount of suspected cocaine and other drug paraphernalia.
Jackson is a multiple time convicted felon who has not had his right to own or possess firearms or ammunition restored, therefore, he is prohibited from possessing a firearm or ammunition under federal law. At the time he committed this offense he knew that he was a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys David W.A. Chee and Shauna S. Hale.
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.