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Wednesday 11 October 2023
Wilkes-Barre Woman Sentenced to 15 Months’ Imprisonment for Tax FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Madeline Nieves, age 49, of Wilkes-Barre, Pennsylvania, was sentenced on October 10, 2023, to 15 months of imprisonment by United States District Court Judge Malachy E. Mannion for conspiring to defraud the United States. Nieves also was sentenced to serve a three-year term of supervised release, following her term of imprisonment.
According to United States Attorney Gerard M. Karam, Nieves previously pleaded guilty to conspiring to evade taxes, for both her personal tax returns, and for a business that she operated. Specifically, Nieves pleaded guilty to conspiring with other individuals to defraud the IRS, from 2018 to 2020, in connection with staffing company Encore Staffing Solutions LLC, leased temporary employees to manufacturing businesses throughout Pennsylvania, and received in excess of $1.2 million in revenue. Nieves failed to withhold, report, and pay Encore Staffing Solutions LLC employee wages to the IRS. Nieves also failed to report her own personal income from Encore Staffing Solutions LLC to the IRS. The crimes resulted in a tax loss of nearly $160,000, which Nieves was ordered to pay in restitution to the IRS.
Five other individuals were previously prosecuted in this investigation:
- Mark Holmes, age 66, of Hughes Springs, Texas, pleaded guilty to accepting, as the General Manager of the Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from temporary staffing companies Global Staffing Services, Inc. and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $7,800,000 from Holmes’s employer. Holmes also pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore Staffing Solutions LLC. Holmes awaits sentencing.
- Nari Lam, age 31, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, as the owner of temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam awaits sentencing.
- Danny Sing, age 60, of Philadelphia, Pennsylvania, pleaded guilty to conspiring with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees, and to failing to withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Danny Sing and his coconspirators paid Global Staffing Services, Inc. employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing Services, Inc.’s clients, to conceal the income and wages from the IRS. The criminal activities occurred between 2013 and 2020. Sing also pleaded guilty to providing in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing Services, Inc.’s client, to obtain business for Global Staffing Services, Inc. Sing awaits sentencing.
- Den Lam, age 49, of Philadelphia, Pennsylvania, was charged in an information alleging that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees. Den Lam also was charged with failing to withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing Services, Inc. to the IRS.
- Jason R. Bonnewell, age 41, of North Abington Township, Pennsylvania, was indicted by a federal grand jury with conspiring to commit honest services fraud, and filing false tax returns. Bonnewell, during his tenure as a supervisor at a Pennsylvania food services company from 2014 to 2019, allegedly accepted cash bribes and other things of value from the owners and operators of Global Staffing Services, Inc. and Penns Independent Staffing. In exchange for the kickbacks, Bonnewell and his coconspirators entered contracts with and hired the temporary employees of the two staffing companies. Allegedly, over $13,000,000 were paid to the two staffing companies, in exchange for hundreds of thousands of dollars in kickbacks. Bonnewell also was charged with three counts of filing false tax returns, for tax years 2017 through 2019, for allegedly failing to disclose the cash payments on his tax returns. Bonnewell awaits trial.
The cases were investigated by the IRS Criminal Investigations Division. The cases are being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
Indictments and Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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West Columbia Gang Member Sentenced to over 12 Years for Federal Drug and Firearm ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Darius Antonio Pugh, age 36, of West Columbia, was sentenced to 12 ½ years (151 months) in federal prison after earlier pleading guilty to two counts of felon in possession of firearms and ammunition and one count of possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, a quantity of cocaine base (commonly known as crack cocaine), and a quantity of cocaine.
Evidence presented to the court showed that on the evening of August 14, 2020, a Charleston County deputy conducted a traffic stop of a speeding vehicle. Pugh, the driver, was in the vehicle with a female friend. As the deputy was speaking with Pugh, he saw loose “shake” (marijuana) inside the vehicle, which gave the deputy probable cause to search the vehicle. Inside the vehicle, deputies recovered a small baggie of cocaine and a loaded 9mm handgun. Pugh, who was out on a state bond from Lexington County for a shooting, was arrested on new state charges and thereafter made another state bond.
Thereafter, while out on state bond for the Charleston incident and state supervised release for discharging a firearm into a dwelling charges, Pugh, a gang member, was involved in a high speed chase with Richland County deputies. Evidence presented to the court showed that on the evening of April 9, 2022, Richland County deputies responded to a home invasion in progress in Northeast Columbia. Enroute, deputies received information that the suspect fled in an older model Expedition. While responding to the call, a deputy encountered an older model Expedition fitting the general description in the area. The deputy attempted to make a traffic stop of the Expedition based upon improper vehicle tags. As the deputy turned on his blue lights and siren, the Expedition fled from Killian Road onto 1-77 with speeds in excess of 100mph. The chase continued for some time and ultimately stopped within the Colony apartment complex, after the Expedition struck a parked vehicle as it attempted to make a turn at a high rate of speed. Pugh ran from the vehicle and was apprehended by deputies. Inside a bag that Pugh had, deputies found a loaded 9mm handgun with an extended magazine and clear bags of methamphetamine, cocaine, and crack cocaine. A search of Pugh’s Expedition uncovered another loaded 9mm handgun, along with a jar of marijuana and a digital scale. Both handguns were reported stolen in Charlotte. It was determined that Pugh was not the suspect involved in the home invasion and that his Expedition was not the Expedition the home invasion victim said left the scene.
Pugh is prohibited from possessing firearms and ammunition based upon his prior state convictions, which include possession of cocaine, possession of other controlled substance, assault and battery of a high and aggravated nature (two separate convictions), possession of stolen motor vehicle, distribution of heroin, distribution of fentanyl, failure to stop for blue light and siren, and discharging firearms into dwelling.
United States District Judge Mary Geiger Lewis sentenced Pugh to 151 months imprisonment, which will be followed by eight years of federal supervised release. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Richland County Sheriff’s Department, the Charleston County Sheriff’s Department, and the Mt. Pleasant Police Department. Assistant U.S. Attorney Stacey D. Haynes prosecuted the case.
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Victory Automotive Group Inc. Agrees to Pay $9 Million to Settle False Claims Act Allegations Relating to Paycheck Protection Program LoanRead the Press Release
Port Richey, Florida-based automotive management company Victory Automotive Group Inc. (VAG) has agreed to pay $9 million to resolve allegations that it violated the False Claims Act (FCA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application it submitted.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business depended on various factors, including the number of employees, amount of revenues and net worth of the applicant, along with any other corporate affiliates that share common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
VAG’s application for a PPP loan certified it was a small business with fewer than 500 employees. However, VAG shared common operational control with dozens of automobile dealerships across the country, and VAG and its affiliates had more than 3,000 employees in total. For that reason, VAG was not eligible for the $6,282,362 PPP loan it received, which was later forgiven in full.
“PPP loans were intended to help small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who undermined the purpose of the PPP program and knowingly obtained PPP funds for which they were not eligible.”
“Even though the PPP Program has ended, our mandate to investigate and redress the harm from improper PPP loans to companies and sole proprietors continues,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to seek repayment of those loans and, where appropriate, additional sanctions from applicants who obtained a loan to which they were not entitled.”
“This resolution demonstrates the department’s resolve in pursuing businesses that improperly received pandemic relief funds,” said Director Michael C. Galdo of the Justice Department's COVID-19 Fraud Enforcement. “I want to thank the Small Business Association (SBA) and our law enforcement partners for their assistance with the Justice Department’s pandemic fraud enforcement efforts.”
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said SBA General Counsel Therese Meers. “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned U.S. ex rel. Jones v. Victory Automotive Group, Inc, et al., No. 8:21-cv-1742 (M.D. Fla.). The whistleblower will receive a total of approximately $1.62 million in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA's Office of Inspector General.
This matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida, with assistance from Christopher J. McClintock of the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Victory Automotive Group Inc. Agrees to Pay $9 Million to Settle False Claims Act Allegations Relating to Paycheck Protection Program LoanRead the Press Release
Port Richey, Florida-based automotive management company Victory Automotive Group Inc. (VAG) has agreed to pay $9 million to resolve allegations that it violated the False Claims Act (FCA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application it submitted.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business depended on various factors, including the number of employees, amount of revenues and net worth of the applicant, along with any other corporate affiliates that share common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
VAG’s application for a PPP loan certified it was a small business with fewer than 500 employees. However, VAG shared common operational control with dozens of automobile dealerships across the country, and VAG and its affiliates had more than 3,000 employees in total. For that reason, VAG was not eligible for the $6,282,362 PPP loan it received, which was later forgiven in full.
“PPP loans were intended to help small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who undermined the purpose of the PPP program and knowingly obtained PPP funds for which they were not eligible.”
“Even though the PPP Program has ended, our mandate to investigate and redress the harm from improper PPP loans to companies and sole proprietors continues,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to seek repayment of those loans and, where appropriate, additional sanctions from applicants who obtained a loan to which they were not entitled.”
“This resolution demonstrates the department’s resolve in pursuing businesses that improperly received pandemic relief funds,” said Director Michael C. Galdo of the Justice Department's COVID-19 Fraud Enforcement. “I want to thank the Small Business Association (SBA) and our law enforcement partners for their assistance with the Justice Department’s pandemic fraud enforcement efforts.”
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said SBA General Counsel Therese Meers. “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned U.S. ex rel. Jones v. Victory Automotive Group, Inc, et al., No. 8:21-cv-1742 (M.D. Fla.). The whistleblower will receive a total of approximately $1.62 million in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA's Office of Inspector General.
This matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida, with assistance from Christopher J. McClintock of the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementUtica Man Sentenced for Possession of Fentanyl for DistributionRead the Press Release
SYRACUSE, NEW YORK – Harry Rodriguez, Jr., age 43, of Utica, New York, was sentenced today to serve 84 months in federal prison for his convictions for two counts of possession with intent to distribute fentanyl, announced United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
As part of his previous guilty plea, Rodriguez admitted that on July 21, 2021, he purchased approximately 36 grams of fentanyl for redistribution. He also admitted that on September 14, 2021, he purchased approximately 50 grams of fentanyl for redistribution.
United States District Judge David N. Hurd also imposed a 3-year term of post-release supervision and a $200 special assessment.
This was investigated by the U.S. Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigations (IRS-CI), New York State Police, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, Utica Police Department, Syracuse Police Department, Rome Police Department, Homeland Security Investigations, United States Immigration and Customs Enforcement and Removal Operations, Onondaga County Sheriff’s Office, Onondaga County District Attorney’s Office, New York Army National Guard Counter Drug Program, Yorkville Police Department, Whitesboro Police Department, and was prosecuted by Assistant U.S. Attorney Tamara Thomson.
United States Attorney’s Office Hosts United Against Hate Event in Des MoinesRead the Press Release
DES MOINES, IA – The United States Attorney’s Office for the Southern District of Iowa will host a public outreach event focused on identifying and reporting hate crimes on Thursday, October 19, 2023, from 5:00 p.m. to 6:30 p.m. at the Polk County River Place, located at 2309 Euclid Avenue in Des Moines.
United Against Hate is a Department of Justice initiative aimed at combating unlawful acts of hate by educating the public about federal hate crimes and anti-discrimination statutes. The program encourages the reporting of hate crimes, hate incidents, and unlawful discrimination to law enforcement and the Department of Justice.
“Hate crimes have a detrimental impact not only on the victims but the entire community. We look forward to providing a forum for subject matter experts to answer questions and shed some light on the laws and processes,” said United States Attorney Rich Westphal.
The United Against Hate event will include an interactive panel discussion featuring representatives from FBI, local law enforcement, Iowa County Attorneys Association, and Polk County Crisis and Advocacy Services, as well as speakers sharing their experiences responding to acts of hate. Please RSVP for the event to [email protected].
To report a hate crime to the FBI, please call 1-800-CALL-FBI, submit a tip at tips.fbi.gov, or contact your local field office.
US Attorney's Office for the District of South Carolina introduces new Public Affairs SpecialistRead the Press Release
COLUMBIA, SOUTH CAROLINA -- United States Attorney Adair F. Boroughs is pleased to announce the arrival of Veronica Hill as the office’s Public Affairs Specialist and media contact. A seasoned communications professional, Veronica brings with her a wealth of energy, creativity, and collaborative experience.
Veronica joins the U.S. Attorney’s Office after serving as a public information officer for the Richland County Sheriff’s Department. Originally from Kansas, Veronica has worked in the fields of journalism, non-profit community engagement, and law enforcement. She has a passion for developing mission-driven communication strategies and public information campaigns. She has a broad media and marketing portfolio including experience coordinating national media coverage, managing TV/docuseries appearances, and social media content creation. Veronica holds a bachelor’s degree in strategic communication and a master’s degree in theology.
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U.S. Attorney’s Office Partnering with Indiana Disability Rights to Ensure Early Voting Sites are Accessible for All VotersRead the Press Release
INDIANAPOLIS- The United States Attorney’s Office for the Southern District of Indiana (USAO) and Indiana Disability Rights (IDR) are partnering to survey the accessibility of early polling sites for 2023 General Election. The project, “Access the Vote,” uses survey results to inform County Clerks about individualized solutions to ensure their polling places are accessible to voters with disabilities.
IDR has conducted accessibility surveys, based on the United States Department of Justice’s Americans with Disabilities Act (ADA) Checklist for Polling Places, during early voting in several primary and general elections. The USAO’s participation provides needed additional personnel to survey more counties and helps to raise awareness of the Access the Vote project.
The ADA requires all aspects of in-person voting – both early and on Election Day – to comply with accessibility requirements, including those for accessible parking and the route of travel to the voting area. The Help America Vote Act (HAVA) mandates additional accessibility measures, such as the provision of a working accessible voting machine at each polling place. Using a combination of IDR and USAO staff, as well as trained community partners, Access the Vote identifies potential ADA and HAVA violations and opportunities to remedy them.
“Voting is a fundamental right and civic duty. Everyone who wishes to vote in-person deserves to do so without barriers,” said Kristin Dulaney, IDR’s Project Manager for Access the Vote. “We welcome the support of the USAO to expand our Access the Vote initiative and serve more voters with disabilities who will cast their ballot this fall throughout Indiana.”
“Having your voice heard at the ballot box is a fundamental part of being an American. Every voter deserves the opportunity to cast their ballot in-person without barriers—and our laws require election officials to ensure access to the polls,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Through the Access the Vote project, we are teaming up with Indiana Disability Rights to help ensure that polling places comply with the Americans with Disabilities Act, and to educate election administrators on how to make their polling sites accessible. We will work together to see that all eligible Hoosiers are able to fully participate in our elections.”
For more information on the U.S. Attorney’s Office’s initiatives to protect Civil Rights, please visit our website.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jeffrey D. Preston, who leads the office’s civil enforcement of civil rights laws and the Access the Vote project. Myers also thanked all the office’s professionals who volunteered to help ensure voters’ rights under law.
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Two Nez Perce County Men Sentenced for Federal Gun CrimesRead the Press Release
COEUR D'ALENE – Shane Bohn, 35, and Matthew Durham, 24, both of Lewiston, were sentenced in separate cases to federal prison for unlawful possession of firearms, U.S. Attorney Josh Hurwit announced today. Bohn received a sentence of 42 months and Durham received a sentence of 15 months. After completing their sentences, the defendants will be placed on supervised release for four and three years, respectively. The defendants were also ordered to forfeit their firearms.
According to court records, Bohn was found in possession of a firearm on November 30, 2022, after having been convicted of felony aggravated assault in Nez Perce County. Durham was found in possession of a firearm on December 29, 2022, after having been convicted of a felony drug charge in Nez Perce County.
U.S. Attorney Hurwit commended the investigations by the North Idaho Violent Crimes Task Force and the work of Special Assistant United States Attorney (SAUSA) April Smith. Smith is the Chief Deputy Prosecutor for Nez Perce County and is sworn as a SAUSA to file cases in federal court.
“I greatly appreciate SAUSA Smith and Elected Prosecutor Coleman’s commitment to keeping guns out of the hands of convicted felons,” said U.S. Attorney Hurwit. “These sentencings demonstrate the advantages of the SAUSA program and the excellent working relationship between my office and the Nez Perce County Prosecutor’s Office.”
“Working jointly with the U.S. Attorney’s Office has provided another way to protect our community. I want to thank their office for partnering with us and I want to recognize North Idaho Violent Crimes Task Force Officer Cody Bloomsburg for his hard work in investigating both of these cases,” said Elected Prosecutor Coleman.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Two Members of Drug Trafficking Conspiracy SentencedRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Heriberto Castillo (44, Denton, Texas) to seven years in federal prison for conspiracy to distribute and possess with the intent to distribute cocaine and fentanyl. His co-conspirator, David Ceballos (27, Alvarado, Texas), was sentenced to three years and one month imprisonment for possession with the intent to distribute cocaine. Castillo had pleaded guilty on November 28, 2022, and Ceballos had pleaded guilty on June 5, 2023.
According to court documents, in the summer of 2021, Castillo was part of a drug trafficking conspiracy that was sending narcotics to the Middle District of Florida. On August 3, 2021, Castillo, while still in Texas, delivered approximately 15 kilograms of cocaine that was destined for the Middle District of Florida. Castillo then flew to Florida on multiple occasions to collect the proceeds, including to pick up a semi-truck tire that was supposed to contain over $400,000.
Also, according to court documents, in August 2021, Ceballos traveled from Texas to Bradenton to distribute approximately six kilograms of cocaine. On August 26, 2021, Ceballos was arrested in Bradenton while transporting the cocaine.
This case was investigated by the Drug Enforcement Administration as part of the Organized Crime Drug Enforcement Task Force (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF. It was prosecuted by Assistant United States Attorneys Michael R. Kenneth and Diego F. Novaes.
Two Indicted in Connection with Multiple St. Louis CarjackingsRead the Press Release
ST. LOUIS – Two St. Louis area men have been indicted and accused of committing multiple carjackings and other crimes.
An indictment accuses Labron Collins, 19, and Bobby Lee Jones, 24, of carjacking two vehicles and trying to take a third on Jan. 25, 2023. They men tried to steal a 2022 Dodge Charger and successfully carjacked a 2012 Honda Civic and a 2011 Infiniti G37, the indictment says.
Collins also carjacked a 2013 Volkswagen Jetta on February 11 and, the next day, a 2013 Acura TL and a 2014 Honda Civic, the indictment says.
Jones was also accused in the indictment of supplying fentanyl on Jan. 15, 2023, that killed the user.
Both were indicted in U.S. District Court in St. Louis September 20. Jones was arrested September 22 and Collins was arrested October 4. Collins appeared in court Tuesday for a detention hearing.
Jones, of Richmond Heights, was indicted on one count of distribution of fentanyl resulting in death, three counts of carjacking, two counts of possession or brandishing a firearm in furtherance of a crime of violence and one count of being a felon in possession of ammunition.
Collins, of St. Louis, was indicted on six carjacking charges and four charges of possession or brandishing a firearm in furtherance of a crime of violence.
The fentanyl charge carries a penalty of at least 20 years in prison. The carjacking charges are punishable by up to 15 years in prison. Brandishing a firearm in furtherance of a crime of violence carries a penalty of seven years to life in prison. A felon in possession of ammunition who has three or more prior convictions for crimes of violence faces at least 15 years in prison.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Two Defendants Indicted for Trafficking Protected BirdsRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, an eight-count indictment was unsealed charging John Waldrop and Toney Jones with conspiracy to smuggle goods into the United States, smuggling goods into the United States, violating the Endangered Species Act (ESA), and money laundering conspiracy. The defendants surrendered this morning in Atlanta and will make their initial appearances this afternoon in U.S. District Court for the Northern District of Georgia. The defendants will be arraigned via teleconference in federal court in Brooklyn on October 16, 2023.
The defendants are alleged to have illegally imported hundreds of taxidermy bird mounts and thousands of eggs into the United States between January 2016, and December 2020. U.S. law and regulations require that importers declare wildlife to the U.S. Fish and Wildlife Service (USFWS) and Customs authorities. Permits are also required for wildlife protected by the ESA, Migratory Bird Treaty Act (MBTA) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Breon Peace, United States Attorney for the Eastern District of New York, Todd Kim, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division (ENRD, and Edward Grace, Assistant Director, U.S. Fish and Wildlife Service, Office of Law Enforcement (USFWS), announced the arrests and charges.
“It is in our national and global interest to enforce federal laws and treaties that protect endangered birds from the harm of alleged profiteers like the defendants, and the Eastern District of New York will do so” stated United States Attorney Peace.
Mr. Peace also thanked The U.S. Postal Inspection Service and the Alabama Department of Conservation and Natural Resources for their assistance with the investigation.
“The Endangered Species Act is a vital law in the fight against international trafficking of protected wildlife,” stated Assistant Attorney General Kim. “Rare and endangered birds have important roles in their habitats, and we are committed to preventing and deterring their unlawful removal.”
“This investigation highlights the immense pressure illegal trade places on imperiled bird species around the world, and the Service's commitment to upholding laws and treaties that prevent the exploitation of foreign and domestic species,” stated USFWS Assistant Director Grace. “We hope this indictment sends a clear message that our investigators will work tirelessly to seek justice for poached wildlife.”
According to the indictment, Waldrop and Jones used online sales sites such as eBay and Etsy to buy taxidermy birds and eggs from around the world, including Germany, Hungary, Iceland, Italy, Lithuania, Malta, Russia, South Africa, the United Kingdom and Uruguay. Waldrop and Jones imported and collected many species of protected birds, such as canary, dipper, duck, eagle, falcon, grouse, gull, hawk, heron, hoopoe, kestrel, kinglet, lapwing, murre, owl, parrot, pochard, rail, teal, snipe, spoonbill, vulture and woodpecker.
In addition to the conspiracy, the indictment charges Waldrop and Jones with importing three packages containing taxidermy birds and eggs in 2020 through John F. Kennedy International Airport in violation of smuggling and ESA laws. The packages contained a Levant sparrowhawk, a grasshopper buzzard-hawk, two gull eggs, two murre eggs and one unidentified bird egg. The final count of the indictment alleges that Waldrop and Jones conspired to commit money laundering by sending funds out of the United States to finance bird smuggling. The indictment also seeks forfeiture of 779 bird mounts and 2,594 eggs alleged to have been illegally imported into the United States.
As alleged, Waldrop and Jones made requests to wildlife dealers for particular bird species, including species that were protected under CITES and the MBTA. In turn, those dealers notified Waldrop and Jones when a bird of that species had been killed and was available for purchase. Waldrop and Jones also communicated regularly with dealers about new birds available for purchase. The estimated value of the wildlife purchased, transported, imported, and possessed by the defendants was at least $1.2 million.
The CITES treaty regulates trade in endangered or threatened species through permit requirements. The United States and 183 other countries are signatories to the CITES treaty. The MBTA implements treaties with Canada, Japan, Mexico, and Russia to protect many native U.S. bird species that also have habitats in those countries.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the smuggling and money laundering charges, Waldrop and Jones face up to 20 years in prison and a $250,000 fine. The conspiracy charge carries a five-year maximum sentence, and the ESA is punishable by six months in prison.
Assistant United States Attorney Anna Karamigios of the Eastern District of New York and Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section are in charge of the prosecution.
The Defendants:
JOHN WALDROP
Age: 74
Cataula and Columbus, GeorgiaTONEY JONES
Age: 53
Eufala, AlabamaE.D.N.Y. Docket No.: 23-CR-378 (RPK)
Two Defendants Convicted of Murder for Hire in Fatal Shooting of Perceived Business Rival in QueensRead the Press Release
Today, a federal jury in Brooklyn returned a guilty verdict against Qing Ming Yu, also known as “Allen” and Zhe Zhang, also known as “Zack,” on both counts of an indictment charging them with murder-for-hire and murder-for-hire conspiracy in connection with the February 12, 2019 killing of 31-year-old Xin “Chris” Gu, outside of a karaoke bar in Queens. The verdict followed a two-week trial before United States District Judge Carol Bagley Amon. When sentenced, each defendant faces a mandatory term of life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“The victim worked long hours to start his own company only to be murdered execution-style by these treacherous defendants who thought nothing of snuffing out a human life as part of their own business plan,” stated United States Attorney Peace. “Thanks to the jury, and the outstanding work of the prosecutors, NYPD detectives and FBI special agents, justice has been served and the defendants will be deservedly punished for this vicious killing.”
As proven at trial, Allen Yu was the president of Amaco, a multi-million dollar construction company that renovated apartments in New York City. In 2015, Xin Gu joined Amaco as a project manager. Although Amaco’s business nearly quadrupled after he joined the company, Xin Gu became concerned about the company’s financial viability and resigned in 2018 to start his own property development company called KG Management. After Xin Gu’s departure, several clients and employees also cut ties with Qing Ming Yu’s business. Multiple companies took their lucrative projects from Amaco to KG Management, including one project valued at $1,000,000. Enraged at Xin Gu’s perceived disloyalty, Qing Ming Yu hired co-conspirator You You and Zhe Zhang to kill Xin Gu in exchange for payment. Zhang in turn hired another co-conspirator, Antony Abreu, to assist in carrying out the murder.
On the evening of February 11, 2019, into the following morning, Xin Gu’s new company hosted a celebration of the Lunar New Year at Lake Pavilion restaurant in Flushing. After that dinner, Xin Gu and a smaller group went to a karaoke bar, Grand Slam KTV on Fowler Avenue. The hit team learned of the party and with You You acting as a lookout and Zhe Zhang serving as the getaway driver, Abreu allegedly shot the victim multiple times as he waited for an Uber, killing him. Over the next three months, Qing Ming Yu paid $150,000 to You You for the murder.
You You pleaded guilty to murder-for-hire conspiracy in June 2023 and is awaiting sentencing. Abreu is awaiting trial.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Nadia E. Moore and Gabriel Park are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed.
The Defendants:
QING MING YU (also known as “Allen”)
Age: 55
Oyster Bay, New YorkZHE ZHANG (also known as “Zack”)
Age: 35
Arcadia, California and Flushing, New YorkE.D.N.Y. Docket No. 22-CR-208 (CBA)
Two California Men Sentenced to Prison for Drug TraffickingRead the Press Release
SPRINGFIELD, Ill. – Two men from Santa Ana, California, have been sentenced to multiple years in prison for trafficking narcotics to Central Illinois. Cesar Lopez Reyes, 21, and Angel Tovar, 22, were each charged with conspiracy to distribute 50 grams or more of methamphetamine.
According to court documents and information presented at public court hearings, the two men had been using social media to conduct a mail-order drug business, which distributed illegal narcotics via the U.S. Mail across the country to Nevada, Oregon, North Carolina, Kentucky, and to multiple places in Illinois. Tovar conducted sales and Lopez Reyes assisted in shipping the illegal substances. The United States Postal Inspection Service and the Illinois State Police West Central Illinois Task Force opened an investigation into the duo after intercepting a package containing methamphetamine, cocaine, and counterfeit pills bound for Adams County, Illinois. The two men were arrested at their residences in Orange County, California. At Tovar’s home, law enforcement recovered an AR-15 semi-automatic rifle.
Lopez Reyes was sentenced on August 30, 2023, to 60 months’ imprisonment, to be followed by three years of supervised release. Tovar was sentenced on October 3, 2023, to 120 months’ imprisonment, to be followed by five years of supervised release. At both hearings, U.S. District Judge Colleen R. Lawless noted that while neither man had any criminal convictions, each had committed a very serious offense.
Lopez Reyes pleaded guilty on April 25, 2023, and Tovar pleaded guilty on May 10, 2023.
“The distribution of illegal drugs, including methamphetamine and counterfeit pills, via social media is happening nationwide, and young adults are particularly susceptible to this type of marketing,” said Assistant U.S. Attorney Sarah E. Seberger. “Our law enforcement partners’ work to stem this tide of illegal drug sales is vitally important to protect public safety. Counterfeit pills also are often not what they appear to be, exacerbating this danger of these sales and leading to potential overdoses. We are grateful for federal and local law enforcements’ combined efforts on this case.”
“The U.S. Postal Inspection Service is committed to dismantling drug trafficking operations to keep USPS customers and employees safe from drug traffickers who favor profit over human lives,” stated Inspector in Charge Ruth M. Mendonça of the U.S. Postal Inspection Service, Chicago Division. “This case is an example of the dedication of the Inspection Service and its law enforcement partners to prevent the shipping of illegal narcotics through the U.S. Mail, which not only endangers the public but also places USPS employees at risk. I appreciate the efforts by all of our law enforcement partners in this case.”
“FBI Springfield and our law enforcement partners have one common goal – the safety of the citizens we have sworn to protect. Removing dangerous drugs and drug dealers off the streets demonstrates our commitment to that goal and holds narcotic traffickers accountable for their actions, no matter what state they reside in,” said FBI Springfield Field Office Acting Special Agent in Charge Shannon Fontenot. “As our commitment is ongoing, the FBI will remain vigilant, continuing to identify and investigate those engaged in the illegal acquisition and distribution of controlled substances.”
The Illinois State Police West Central Illinois Task Force; the United States Postal Inspection Service; the Quincy Police Department; and the Federal Bureau of Investigation, Springfield Field Office, investigated the case with valuable assistance from the Santa Ana Police Department. Assistance was also provided by the Adams County State’s Attorney’s Office. AUSA Seberger represented the government in the prosecution.
The cases against Lopez Reyes and Tovar are 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.
Three Middlesex County Individuals Admit COVID-19 Fraud Schemes Totaling over $2.1 MillionRead the Press Release
NEWARK, N.J. – Two men and one woman of Middlesex County, New Jersey, have pleaded guilty on separate charges related to their roles in fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced today.
Arlen G. Encarnacion, 37, of Perth Amboy, New Jersey, pleaded guilty today before U.S. District Judge Georgette Castner in Trenton federal court to a two-count information charging him with conspiracy to commit wire fraud and money laundering. On Aug. 8, 2023, Jacquelyn Pena, 37, and Kent Encarnacion, 30, both of Perth Amboy, also separately pleaded guilty before Judge Castner to informations charging each of them with conspiracy to commit wire fraud and money laundering.
U.S. Attorney Philip R. Sellinger“Enormous amounts of financial relief went to those Americans who were struggling with this unprecedented pandemic, but, sadly, a number of people saw this difficult time as an opportunity to enrich themselves illicitly. Our office is focused on combating all types of fraud, especially when it involves exploiting the suffering of others.”
“The CARES Act was created to assist to American citizens and businesses that were impacted financially by the COVID-19 Pandemic,” Christopher A. Nielsen, Inspector in Charge, U.S. Postal Inspection Service, Philadelphia Division, said. “However, as alleged, Arlen Encarnacion, and his co-conspirators, manipulated this critical lifeline through a complex scheme that fraudulently obtained more than $2 million dollars in Paycheck Protection Program (PPP) loans. Postal inspectors will continue to work with the U.S. Attorney’s Office, and our law enforcement partners, to identify and hold accountable, those individuals who steal pandemic relief to fulfill their own greed.”
“IRS Criminal Investigations and our law enforcement partners will not tolerate criminal exploitation of this national emergency for personal gain,” Tammy Tomlins, Special Agent in Charge of IRS – Criminal Investigation, Newark Field Office, said. “Today’s plea sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
According to the documents filed in these cases and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. The CARES Act also authorized the Small Business Administration to provide EIDLs of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.
To obtain a PPP or EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.
Arlen Encarnacion submitted 11 fraudulent PPP loan applications and three fraudulent EIDL applications on behalf of purported businesses. Kent Encarnacion helped submit one of the fraudulent PPP applications, and Pena helped submit three of the other fraudulent PPP applications. Each application contained false representations, including bogus federal tax return documentation and fabricated information about the number of employees and wages paid. Based on these alleged misrepresentations, lenders, Federal Home Loan Bank members, and the Small Business Administration collectively provided the purported businesses with approximately $2.1 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Arlen Encarnacion received the bulk of the fraudulent proceeds, and together with Kent Encarnacion and Pena, they misappropriated all of the funds.
Each count of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison, and each count of money laundering carries a maximum penalty of 10 years in prison. Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing for Arlen Encarnacion is scheduled for Feb. 13, 2024. Sentencing for Kent Encarnacion is scheduled for Dec. 12, 2023, and for Pena, Dec. 13, 2023.
U.S. Attorney Philip Sellinger credited postal inspectors of U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Social Security Administration – Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau – Office of Inspector General, under the direction of Special Agent in Charge Brian Tucker; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; with the investigation leading to the guilty pleas. He also thanked the Middlesex County Prosecutor’s Office and the Perth Amboy Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
encarnacion.information.pdfTexas U.S. Attorneys unite against domestic violenceRead the Press Release
HOUSTON – All four U.S. Attorneys from Texas converged in the Southern District for a historic event to commemorate Domestic Violence Awareness Month (DVAM), honor Texas victims and survivors as well as salute the dedication of advocates, service providers, justice professionals, first responders and law enforcement.
U.S. Attorney Alamdar S. Hamdani was joined by fellow U.S. Attorneys Damien Diggs, Leigha Simonton and Jaime Esparza of the Eastern, Northern and Western Districts, respectively, along with Gloria Aguilera Terry, CEO of the Texas Council on Family Violence (TCFV), for this historic event. This is the first press conference to include all four Texas U.S. Attorneys.
The audience heard how domestic violence takes a toll on families and affects communities, both socially and economically. The consequences of domestic violence, dating violence and intimate partner violence have a long-lasting impact. One of four women and one of 10 men will experience domestic or sexual violence in their lifetime.
According to the TCFV Honoring Texas Victims 2022 analysis report, intimate partners killed 216 Texans in 64 Texas counties. This includes 179 women, 37 men and six LGBTQ+ victims. Of those, 96% of family members, friends and bystanders were killed with a firearm; 100% of those injured were shot; and 18 perpetrators had identified firearm prohibitions. The number of women a male partner killed has also nearly doubled in the last decade.
A crucial part of combatting domestic violence and reducing violent crimes includes enforcing federal firearm prohibitions.
The Texas U.S. Attorneys are committed to leveraging every federal resource available to go after abusers. They are collaborating with state and local partners by providing resources and initiative awareness.
“Through our novel and long-running Domestic Violence Initiative, out violent crime prosecutors and our partner agents at Bureau of Alcohol, Tobacco, Firearms and Explosives focus on investigating and prosecuting criminals who illegally possess guns and have a history of domestic abuse,” said Simonton. “This included those with previous assault conviction against an intimate partner.”
“We are going to the shelters and letting our folks at the shelters and all the local stakeholders know we have this initiative, particularly in the Northern and Eastern Districts,” said Diggs. “We are here to help and we want to help.”
"As U.S. Attorney for each of the four districts in Texas, it is our responsibility to deploy every available resource and forge strategic partnerships with local law enforcement and fellow prosecutors," said Esparza. "Our shared goal is to ensure victims have a clear path to safety and justice."
“At the end of the day the goal is to bring people out of the shadows, those who are being abused, to come seek help,” said Hamdani. “We want the public to know the chief federal law enforcement officers of this state stand united and firmly with domestic violence victims and survivors.”
If you or someone you know is a victim of domestic violence or need resources, please visit the resources page for the Office of Violence Against Women.
There is immediate help for domestic violence victims - Call Legal Aid for Survivors of Sexual Assault at 1-844-303-7233, Stop Abuse for Everyone at 1-512-267-7233 (or text 1-737-888-7233) or Texas Advocacy Project on their Hope Line at 1-800-374-4673 or their Pro Bono Attorney line at 1-800-374-4674.
Tennessee Man Found Guilty of Felony Charges Related to Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A Tennessee man was found guilty in the District of Columbia today of five felony charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.
Ronald Colton McAbee, 29, of Unionville, Tennessee, was found guilty of all charges against him following a jury trial in U.S. District Court. McAbee was convicted of five felonies, including assaulting, resisting, or impeding certain officers; civil disorder; entering and remaining in a restricted building or grounds with a deadly or dangerous weapon; disorderly and disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon; and engaging in physical violence in a restricted building or grounds with a deadly or dangerous weapon.
On Sept. 25, 2023, McAbee pleaded guilty to a separate felony charge of assaulting, resisting, or impeding an officer and a misdemeanor charge for an act of physical violence on the Capitol grounds before U.S. District Court Judge Rudolph Contreras in the District of Columbia.
Judge Contreras will sentence McAbee on Feb. 29, 2024.
According to the government’s evidence, on Jan. 6, 2021, officers from the Metropolitan Police Department (MPD) responded to the U.S. Capitol building to assist the U.S. Capitol Police in maintaining the security of the Capitol from ongoing riots. At approximately 4:20 p.m., MPD officers made their way to an interior tunnel of the Capitol building. Here, they assumed a post in an Archway that provided access to the building’s Lower West Terrace.
As the officers arrived, hundreds of individuals gathered outside the Archway, some throwing and/or swinging various makeshift weapons at the group of officers. At about 4:27 p.m., an MPD officer positioned toward the opening of the Archway was knocked to the ground, kicked, and stripped of his baton. During this incident, McAbee was positioned on the south side of the Archway and was able to observe the assault.
After the officer was knocked to the ground, McAbee stepped into the Archway, grabbed the officer’s leg, and pulled him further towards the crowd. When a second MPD officer stepped off the police line to assist the downed officer, McAbee stood up, yelled at the officer who had stepped out to assist, and then swung his arms and hands towards the officer’s head and torso. McAbee made contact with the officer and was wearing reinforced knuckle gloves at the time of the assault.
McAbee then returned his attention to the downed officer and lifted him by the torso and shoulders. As a result, McAbee and the officer slid down a set of steps, with McAbee falling on top of the officer. The two landed in the crowd, where McAbee lay on top of the officer while other rioters assailed the officer for over 20 seconds before the officer was finally able to get up and work his way back to the Archway. The officer sustained physical injuries, including a head laceration, concussion, elbow injury, bruising, and bodily abrasions. The officer was transported to the hospital and treated for his injuries.
McAbee was arrested on Aug. 17, 2021, in Nashville, Tennessee.
The Court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Middle District of Tennessee and the U.S. Attorney’s Office for the Eastern District of Tennessee.
The case was investigated by the FBI’s Washington, Memphis, and Knoxville Field Offices, which identified McAbee as BOLO (Be on the Lookout) #134 on its seeking information photos. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.
In the 33 months since Jan. 6, 2021, more than 1,100 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 400 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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Ten Individuals Charged for $950,000 COVID-19 Relief Fraud SchemesRead the Press Release
A federal grand jury in the Western District of Tennessee returned an indictment yesterday charging 10 individuals for their roles in schemes to defraud the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, the defendants allegedly obtained funds under the EIDL program and PPP by submitting false and fraudulent loan applications that collectively sought over $950,000. The defendants are alleged to have submitted applications on behalf of businesses and entities they purportedly owned, knowing that the applications contained materially false statements and misrepresentations concerning, among other things, the purported entities’ number of employees, gross revenues, costs of goods sold, average monthly payroll, and the date on which the entities were established. The defendants then allegedly used the loan funds for purposes not authorized by the EIDL program or PPP, including for personal expenses.
Below are the 10 defendants and their charges:
- Rodrick Flowers, 47, of Memphis, Tennessee, is charged with 12 counts of wire fraud. Flowers was the owner of Ezential Consulting & Management Firm LLC and Rodrick Flowers. He allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of Ezential Consulting & Management Firm LLC, for which he obtained approximately $37,000 in EIDL proceeds and approximately $74,450 in PPP loan proceeds. Flowers also submitted or caused to be submitted eight fraudulent EIDL applications and two fraudulent PPP applications on behalf of entities owned by each of his co-defendants.
- Stephen Brown, 44, of Memphis, is charged with two counts of wire fraud. Brown was the owner and pastor of Light of Glory International Church and Stephen Brown Ministries. He allegedly submitted a fraudulent EIDL application on behalf of Light of Glory International Church and a fraudulent PPP application on behalf of Stephen Brown Ministries, for which he obtained approximately $149,900 in EIDL proceeds.
- LaTonya Herman, 44, of Memphis, is charged with two counts of wire fraud. Herman was the owner of LaTonya Herman. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $93,800 in EIDL proceeds.
- Jarvys Jones, 38, of West Memphis, Arkansas, is charged with two counts of wire fraud. Jones was the owner and pastor of The Temple of Refuge, also referred to as Temple of Refuge Inc, and Refuge. He allegedly submitted a fraudulent EIDL application on behalf of Refuge and a fraudulent PPP application on behalf of Temple of Refuge Inc, for which he obtained approximately $20,000 in EIDL proceeds.
- Brian Mays, 40, of Olive Branch, Mississippi, is charged with one count of wire fraud. Mays was the owner of A-Mays-in-Trucking. He allegedly submitted a fraudulent EIDL application on behalf of his business, for which he obtained approximately $107,400 in EIDL proceeds.
- Diane Moss, 60, of Blytheville, Arkansas, is charged with two counts of wire fraud. Moss was the owner of The Station, Diane’s Boutique, and Diane Moss. She allegedly submitted a fraudulent EIDL application on behalf of The Station and a fraudulent PPP application on behalf of Diane Moss, for which she obtained approximately $99,300 in EIDL proceeds and approximately $28,420 in PPP loan proceeds.
- Mary Payne, 61, of Memphis, is charged with two counts of wire fraud. Payne was the owner of Right Now Staffing LLC. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $4,000 in an EIDL advance.
- Krystal Sherrod, 34, of Memphis, is charged with one count of wire fraud. Sherrod was the owner of Krystal Sherrod. She allegedly submitted a fraudulent EIDL application on behalf of her business for which she obtained approximately $83,300 in EIDL proceeds.
- Frederick Smith, 54, of Cordova, Tennessee, is charged with two counts of wire fraud. Smith was the owner and pastor of New Life Holiness Church. He also owned Fred Smith Ministries and Frederick Smith, and was the owner and trustee in bankruptcy for New Life Holiness BK. Smith allegedly submitted a fraudulent EIDL application on behalf of Fred Smith Ministries and a fraudulent PPP application on behalf of New Life Holiness BK, for which he obtained approximately $150,275 in PPP loan proceeds.
- Cleveland Wells, 65, of Memphis, is charged with two counts of wire fraud. Wells was the owner and pastor of Glory to God Ministries. He also owned Don’t Worry About it Home Solutions, aka Cleveland Wells Jr. dba Don’t Worry About it Home Solutions. Wells allegedly submitted a fraudulent EIDL application on behalf of Glory to God Ministries and a fraudulent PPP application on behalf of Cleveland Wells Jr. dba Don’t Worry About it Home Solutions, for which he obtained approximately $149,900 in EIDL proceeds.
If convicted, they each face a maximum penalty of 20 years in prison on each wire fraud count.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Mark H. Morini Jr. of the Treasury Inspector General for Tax Administration (TIGTA), Special Agent in Charge Edwin Bonano of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), and Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.
TIGTA, FHFA-OIG, and FDIC-OIG are investigating the case.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Carroll Andre for the Western District of Tennessee are prosecuting the case.
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.
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.
Anyone with information about attempted fraud concerning COVID-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ten Individuals Charged for $950,000 COVID-19 Relief Fraud SchemesRead the Press Release
Memphis, TN – A federal grand jury in the Western District of Tennessee returned an indictment yesterday charging ten individuals for their roles in schemes to defraud the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, the defendants allegedly obtained funds under the EIDL program and PPP by submitting false and fraudulent loan applications that collectively sought over $950,000. The defendants are alleged to have submitted applications on behalf of businesses and entities they purportedly owned, knowing that the applications contained materially false statements and misrepresentations concerning, among other things, the purported entities’ number of employees, gross revenues, costs of goods sold, average monthly payroll, and the date on which the entities were established. The defendants then allegedly used the loan funds for purposes not authorized by the EIDL program or PPP, including for personal expenses.
Below are the ten defendants and their charges:
- Rodrick Flowers, 47, of Memphis, Tennessee, is charged with 12 counts of wire fraud. Flowers was the owner of Ezential Consulting & Management Firm LLC and Rodrick Flowers. He allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of Ezential Consulting & Management Firm LLC, for which he obtained approximately $37,000 in EIDL proceeds and approximately $74,450 in PPP loan proceeds. Flowers also submitted or caused to be submitted eight fraudulent EIDL applications and two fraudulent PPP applications on behalf of entities owned by each of his co-defendants.
- Stephen Brown, 44, of Memphis, is charged with two counts of wire fraud. Brown was the owner and pastor of Light of Glory International Church and Stephen Brown Ministries. He allegedly submitted a fraudulent EIDL application on behalf of Light of Glory International Church and a fraudulent PPP application on behalf of Stephen Brown Ministries, for which he obtained approximately $149,900 in EIDL proceeds.
- LaTonya Herman, 44, of Memphis, is charged with two counts of wire fraud. Herman was the owner of LaTonya Herman. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $93,800 in EIDL proceeds.
- Jarvys Jones, 38, of West Memphis, Arkansas, is charged with two counts of wire fraud. Jones was the owner and pastor of The Temple of Refuge, also referred to as Temple of Refuge Inc and Refuge. He allegedly submitted a fraudulent EIDL application on behalf of Refuge and a fraudulent PPP application on behalf of Temple of Refuge Inc, for which he obtained approximately $20,000 in EIDL proceeds.
- Brian Mays, 40, of Olive Branch, Mississippi, is charged with one count of wire fraud. Mays was the owner of A-Mays-in-Trucking. He allegedly submitted a fraudulent EIDL application on behalf of his business, for which he obtained approximately $107,400 in EIDL proceeds.
- Diane Moss, 60, of Blytheville, Arkansas, is charged with two counts of wire fraud. Moss was the owner of The Station, Diane’s Boutique, and Diane Moss. She allegedly submitted a fraudulent EIDL application on behalf of The Station and a fraudulent PPP application on behalf of Diane Moss, for which she obtained approximately $99,300 in EIDL proceeds and approximately $28,420 in PPP loan proceeds.
- Mary Payne, 61, of Memphis, is charged with two counts of wire fraud. Payne was the owner of Right Now Staffing LLC. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $4,000 in an EIDL advance.
- Krystall Sherrod, 34, of Memphis, is charged with one count of wire fraud. Sherrod was the owner of Krystal Sherrod. She allegedly submitted a fraudulent EIDL application on behalf of her business for which she obtained approximately $83,300 in EIDL proceeds.
- Frederick Smith, 54, of Cordova, Tennessee, is charged with two counts of wire fraud. Smith was the owner and pastor of New Life Holiness Church. He also owned Fred Smith Ministries and Frederick Smith, and was the owner and trustee in bankruptcy for New Life Holiness BK. Smith allegedly submitted a fraudulent EIDL application on behalf of Fred Smith Ministries and a fraudulent PPP application on behalf of New Life Holiness BK, for which he obtained approximately $150,275 in PPP loan proceeds.
- Cleveland Wells, 65, of Memphis, is charged with two counts of wire fraud. Wells was the owner and pastor of Glory to God Ministries. He also owned Don’t Worry About it Home Solutions, aka Cleveland Wells Jr. dba Don’t Worry About it Home Solutions. Wells allegedly submitted a fraudulent EIDL application on behalf of Glory to God Ministries and a fraudulent PPP application on behalf of Cleveland Wells Jr. dba Don’t Worry About it Home Solutions, for which he obtained approximately $149,900 in EIDL proceeds.
If convicted, they each face a maximum penalty of 20 years in prison on each wire fraud count.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Mark H. Morini Jr. of the Treasury Inspector General for Tax Administration (TIGTA), Special Agent in Charge Edwin Bonano of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), and Special Agent in Charge Anand Ramiall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.
TIGTA, FHFA-OIG, and FDIC-OIG are investigating the case.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Carroll Andre for the Western District of Tennessee are prosecuting the case.
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.
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.
Anyone with information about attempted fraud concerning COVID-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Tahlequah Resident Sentenced for Aggravated Sexual Abuse and Abusive Sexual ContactRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Lance Pritchett, age 33, of Tahlequah, Oklahoma, was sentenced to life in prison for one count of Aggravated Sexual Abuse and one count of Abusive Sexual Contact in Indian Country.
The charges arose from investigations by the Federal Bureau of Investigation and the Cherokee Nation Marshal Service.
On July 8, 2022, a federal jury found Pritchett guilty at trial of Aggravated Sexual Abuse of one child over the course of several years, and of a single instance of Abusive Sexual Contact of a second child. The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation and within the Eastern District of Oklahoma.
“Cases like the one against Mr. Pritchett are some of the most heartbreaking, yet purposeful the FBI can investigate,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “I’m grateful for the efforts of our law enforcement partners and the U.S. Attorney’s Office to ensure he will never be able to harm another child.”
“Although the abuse inflicted on these innocent victims cannot be erased, this office stands committed to ensuring those who abuse children see justice,” said United States Attorney Christopher J. Wilson. “This sentence today brings a measure of assurance that the defendant will never be free to prey on children again.”
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Pritchett will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Morgan Muzljakovich and Nicole Paladino represented the United States.
Springfield Man Indicted After Ramming Airport Gate, Driving onto RunwayRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been indicted by a federal grand jury after driving his truck through a gate and onto a runway at the Springfield-Branson National Airport.
Gary Eugene Edwards, 58, was charged with damaging and interfering with an air navigation facility in an indictment returned by a federal grand jury in Springfield on Tuesday, Oct. 10.
The indictment alleges that Edwards caused damage to the Springfield-Branson National Airport and interfered with the operation of the airport on Sunday, Oct. 8, 2023.
Airport police arrested Edwards following a short pursuit after he rammed an airport gate while driving a gold Ford F-150 pickup truck.
An airport police officer activated his emergency lights and siren and attempted to stop Edwards. However, Edwards refused to stop and drove onto the tarmac and runway of the airport, then drove back through the damaged gate as he fled from the officer. Airport police officers pursued Edwards as he drove over several curbs before stopping in front of the terminal building. Edwards ran into the building and was taken into custody.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the Springfield-Branson National Airport Police.
Reynoldsburg man pleads guilty to crimes related to robberies, I-70 shootoutRead the Press Release
COLUMBUS, Ohio – Aden Abdullahi Jama, 20, of Reynoldsburg, Ohio, pleaded guilty in U.S. District Court today to being an accessory after the fact to bank robbery, two counts of aiding and abetting robberies and two counts of aiding and abetting the use of a firearm during the robberies.
Jama and Faisal M. Darod, 23, of Columbus, were charged by a federal grand jury in a 10-count superseding indictment on Sept. 27.
The two central Ohio men were allegedly involved in the July 6 shooting of a Columbus police officer. Jama admitted in court today to participating in related crimes on July 5 and July 6.
According to his plea agreement, on July 5, Jama aided and abetted Darod and another individual after they robbed at gunpoint the Fifth Third Bank on Fishinger Road in Upper Arlington. Specifically, Jama met up with the men on West Sixth Avenue in Columbus and drove them to the Baymont Inn and Suites on Morse Road. This allowed Darod and the other individual to abandon a stolen Corvette they used during the robbery.
While at the hotel, Darod and Jama recorded a video on Darod’s cell phone showing Darod lying on the bed surrounded by the recently stolen cash. In the video, Darod raps about “cheese” – i.e., money, being in the air and everywhere.
The next day, on July 6, Jama served as a driver and/or lookout both before and after an armed robbery at Byers Imports in Whitehall.
Shortly after the robbery, Jama and Darod met up with the car thief at townhomes on the southeast side of Columbus. The three men then drove the stolen Porsche Cayenne, sometimes exceeding 100 miles per hour, to Hilliard to commit another armed bank robbery.
Jama again served as the lookout and aided and abetted the armed robbery and the use of a firearm during that robbery at Fifth Third Bank on Hilliard-Rome Road in Hilliard.
Unbeknownst to the three men, Whitehall police detectives had been tracking their movements using the Porsche Cayenne’s onboard GPS system. The detectives surrounded the stolen car at Fifth Third Bank and ordered the men to stop the vehicle. The now-deceased driver drove the stolen Porsche through a gap in the detectives’ cars and fled over a grass embankment onto Hilliard-Rome Road, and, eventually, out to Roberts Road and the freeway.
Columbus police officers then located the stolen vehicle on I-70 traveling eastbound. The men reached speeds more than 125 miles per hour near rush hour while attempting to flee law enforcement.
The vehicle became damaged and came to an abrupt stop before Jama and Darod both fled on foot. The third man used a handgun with an extended magazine to ambush the responding officers. He opened fire from close range and struck one officer. That officer suffered life-threatening injuries. The driver of the stolen vehicle was struck several times and died of his gunshot wounds soon after.
Following the gun battle on I-70, a coordinated manhunt ensued for Jama and Darod. Darod was arrested in Columbus on the evening of July 7. By then, he had conducted several internet searches for flights out of Columbus to Somalia. U.S. Marshals and Homeland Security Investigation agents arrested Jama at Chicago O’Hare International Airport on July 8, bound for Turkey, with an ultimate destination of Somalia.
Aiding and abetting a bank robbery is punishable by up to 20 years in prison. Aiding and abetting the use of a firearm during a crime of violence carries a potential penalty of at least five years and up to life in prison. Being an accessory after the fact of bank robbery is punishable by up to 10 years in prison.
Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court at a later hearing based on the advisory sentencing guidelines and other statutory factors.
Charges remain pending against Darod.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Columbus Police Chief Elaine Bryant; the United States Marshals in Columbus and Chicago; ICE and HSI Chicago; the Whitehall, Minerva Parka and Upper Arlington police departments; and Franklin County Sheriff Dallas Baldwin announced the guilty plea entered this morning before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
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Quincy Man Sentenced to 10 Years for Receipt of Child PornographyRead the Press Release
Spokane – On October 11, 2023, U.S. District Judge Thomas O. Rice sentenced Joseph Thomas Schmitz, 35, of Quincy, Washington, to 120 months in federal prison for Receipt of Child Pornography. Schmitz pleaded guilty on May 11, 2023. Judge Rice also ordered Schmitz to pay $6,000 in restitution to two of his victims and special assessments totaling $7,000 to funds benefitting victims of human trafficking and child pornography crime. Judge Rice further ordered that Schmitz be federally supervised for 10 years after being released from prison.
According to court documents and proceedings, Schmitz was identified as a suspect in May 2021 after his wife called the police and reported finding nude photos of an approximately 11 years old female in a hidden folder on Schmitz’s iPad. Pursuant to search warrants, federal agents searched Schmitz’s electronic devices and iCloud account and found child pornography files linked to 25 previously identified child pornography victims, in addition to more images and videos of the 11-year-old girl. Agents additionally found evidence of Schmitz using the Kik application back to November 2019, frequenting groups dedicated to the viewing and sharing of child sexual abuse and sharing links with others within these groups.
“The sentence imposed in this case recognizes the ongoing and lasting harm caused by child exploitation. It sends a strong message to Mr. Schmitz and others who use what they believe to be online anonymity to exploit the most vulnerable among us,” said United States Attorney Vanessa R. Waldref. “My office prioritizes these offenses against our community’s youngest and most vulnerable and will continue to prosecute those who harm children.
This sentencing is yet another example of the impact federal and state law enforcement partnerships bring to the safety of our communities,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The success of this case lied in the vigilance of family members and our joint efforts to end further victimization.”
This case was investigated by Homeland Security Investigations and the Quincy Police Department and prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
2:21-CR-097-TOR
Pine City Man Pleads Guilty in Multi-Victim Child Exploitation and Child Pornography SchemeRead the Press Release
MINNEAPOLIS – A Pine City man has pleaded guilty to five counts of producing, receiving, and distributing images of child pornography, and coercing and enticing minors to engage in illegal sexual activity, announced U.S. Attorney Andrew M. Luger.
According to his plea agreement and court documents, beginning in or about January 2019, Caleb Vincent McLaughlin, 26, created and used multiple social media accounts and communications applications to solicit and direct at least 14 minor girls between the ages of 11 and 16 years old in Minnesota, and a number of girls as yet to be identified in Minnesota, North Dakota, and elsewhere, to create sexually explicit images and videos to send to him. McLaughlin used a variety of aliases and Snapchat IDs including “Jake Benson,” “Lift11” or “Tech4cm,” in his scheme, and sometimes purported to be 17 years old to prey on minor girls he met online in order to entice and coerce them to create sexually explicit images and videos. In addition to producing child sexual abuse material, McLaughlin offered the minors drugs, alcohol, cash, and gift cards in exchange for sex acts.
On July 17, 2023, McLaughlin was charged in a federal criminal complaint with soliciting, producing, receiving, and distributing images of child pornography, and enticing a child to engage in illegal sexual activity. McLaughlin pleaded guilty today before Chief Judge Patrick J. Schlitz in U.S. District Court in Minneapolis. A sentencing hearing is scheduled for February 13, 2024, at 9:00 a.m.
Law enforcement officials are still working to identify and confirm the identity of many of the minor victims involved. If you believe you or your minor dependent(s) have been victimized by Caleb McLaughlin, please contact the FBI Tip Line at 1-800-CALL-FBI (1-800-225-5324) or tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, with substantial assistance from the St. Paul Police Department, Pine County Sheriff's Office, and Hennepin County Sheriff’s Office.
Assistant U.S. Attorneys Hillary A. Taylor and Rachel L. Kraker are prosecuting the case.
Penobscot Man Sentenced to 15 Years for Role in Fentanyl Trafficking ConspiracyRead the Press Release
BANGOR, Maine: A Penobscot man was sentenced Tuesday in U.S. District Court in Bangor for conspiring to distribute fentanyl.
U.S. District Judge Lance E. Walker sentenced Christopher Beaucage, 38, to 180 months in prison followed by four years of supervised release.
According to court records, in October 2021, Beaucage and a coconspirator were stopped by an officer from the Bucksport Police Department. After a search of the vehicle revealed approximately 60 grams of fentanyl, Beaucage admitted the fentanyl belonged to him, and he was arrested on outstanding warrants. While he was incarcerated, monitored and recorded phone calls revealed that Beaucage and others continued to engage in drug trafficking activities. Details discussed included traveling out of state to meet with a source, the prices of the narcotics and distributing fentanyl to customers in Maine.
The FBI and Bucksport Police Department investigated the case.
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Pain Clinic Doctor Sentenced to Prison for Unlawful Drug Distribution, Money Laundering, and Filing A False Tax ReturnRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Qing McGaha to seven years and eight months in federal prison for unlawful drug distribution, money laundering, and filing a false tax return. The court also ordered McGaha to forfeit an office condominium, which is traceable to proceeds of the offense, pay $100,000 in criminal fines, and $119,462.34 in restitution to the Internal Revenue Service. As part of her sentence, McGaha also forfeited $774,216.12 in cash seized from her residence and $170,512.34 seized from her two bank accounts, which were proceeds of her criminal conduct. A federal jury had found McGaha guilty on June 16, 2023.
According to court documents, McGaha was a Florida-licensed medical doctor who owned and operated MD Care Clinic, a pain management clinic in Hillsborough County. Over a 20-month period, undercover agents with the Drug Enforcement Administration conducted numerous appointments with McGaha. At each appointment, they received hydrocodone, hydromorphone, or oxycodone, Schedule II controlled substances, not for a legitimate medical purpose in the usual course of professional practice. Between January 2016 and January 2021, McGaha distributed more than 2.1 million opioid pills.
In addition, McGaha engaged in multiple monetary transactions over $10,000 in funds criminally derived from the operation of her clinic. She used these funds to purchase a piece of real property located in Clearwater and deposited the, into her bank account. In 2021, McGaha filed false and fraudulent tax forms for tax year 2020 that underreported MD Care’s gross revenue by nearly $300,000.
“Medical professionals who put personal profit over the safety and health of their patients by prescribing controlled substances without legitimate medical need violate both their oath to ‘do no harm’ as well as the Controlled Substances Act, ” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This sentence is a testament to the DEA Miami Field Division’s commitment to working with our law enforcement partners to pursue those medical professionals who violate the public’s trust and put our communities at risk.”
“Dr. McGaha greedily ignored her oath to put her patients first - she thought she could get away with using her pill mill to doctor scripts that put harmful drugs on the streets,” said Brian Payne, special agent in charge of the IRS Criminal Investigation, Tampa Field Office. “To make matters worse, she then tried to evade her tax obligations by failing to report the fruits of her crimes to the IRS. The fall of another tax evading pill mill is a victory for all law enforcement involved.”
This case was investigated by the Drug Enforcement Administration—Tampa District Office, the Internal Revenue Service—Criminal Investigation, the Lakeland Police Department, the Tampa Police Department, the Largo Police Department, and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. This case was also part of the Organized Crime Drug Enforcement Task Force. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Suzanne Nebesky.
Oregon Man Sentenced to 192 Months in PrisonRead the Press Release
FORT WAYNE–Julian Muriera, 30 years old, of Hillsboro, Oregon, was sentenced by United States District Court Judge Damon R. Leichty after being found guilty by a jury of Attempted Child Exploitation, announced United States Attorney Clifford D. Johnson.
Muriera was sentenced to 192 months in prison followed by 5 years of supervised release.
According to documents in the case, between April and May 2019, Muriera engaged in sexually explicit online conversations with an undercover Officer who Muriera believed to be related to a minor with whom he was sexually active. Over the course of several online conversations, Muriera expressed his preference for teenage girls and an interest in watching a livestream of the purported relative engaging in sexual activity with the minor. Muriera also provided graphic detail he wanted to see in the anticipated sexual activity.
This case was investigated by the Federal Bureau of Investigation with assistance from the United States Attorney’s Office for the District of Oregon. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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 www.projectsafechildhood.gov.
Oneida County Man Sentenced to 25 Years in Prison for Distributing, Transporting and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Chad Srogi, age 40, of Vernon, New York was sentenced today to serve 25 years in federal prison for distributing, transporting, and possessing child pornography. United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and New York State Police Acting Superintendent Dominick Chiumento made the announcement.
In previously pleading guilty, Srogi admitted that he distributed and transported child pornography on multiple social media platforms in 2018 and possessed more than a hundred child pornography files in October 2019. He also admitted that, in 2007, he was convicted in Florida of Promoting the Sexual Performance of a Child and Possessing Material Depicting the Sexual Performance of a Child.
In addition to the 300-month imprisonment term, United States District Judge Glenn T. Suddaby also imposed a 25-year term of supervised release to begin after Srogi serves his term of imprisonment. Srogi also will be required to register as a sex offender upon his release from prison and was ordered to pay restitution totaling $9,000 to the identified victims of his offenses.
This case was investigated by U.S. Homeland Security Investigations (HSI) and the New York State Police (Troop D Bureau of Criminal Investigation (BCI) and the Computer Crimes Unit) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood.
Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Ohkay Owingeh Man Sentenced to 14 Years in Prison for Second Degree MurderRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Fidel Archuleta was sentenced to 14 years in prison. Archuleta, 67, of Ohkay Owingeh, and an enrolled member of the Ohkay Owingeh Pueblo, pled guilty to second degree murder on June 5, 2023
According to court documents, on Dec. 11, 2022, Archuleta stabbed his wife to death in their home on Coral Lane in Ohkay Owingeh. When law enforcement arrived, they found that the security door had been pried open and the victim deceased on the floor. Archuleta was unconscious on a couch nearby with a knife in his hand and three shallow stab wounds to his upper body which were self-inflicted and not life threatening. Archuleta had a long-documented history of domestic violence and had been kicked out of the residence by his wife approximately one week before.
Upon his release from prison, Archuleta will be subject to 5 years of supervised release.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs and the Ohkay Owingeh Police Department. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
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Northern District of Georgia honors first graduate of Accountability, Treatment, and Leadership Court programRead the Press Release
ATLANTA - The U.S. Attorney's Office, the U.S. District Court, the Federal Defender Program, Inc., and the U.S. Probation Office honored the first graduate of the Accountability, Treatment, and Leadership Court (ATL Court) program for the Northern District of Georgia.
“We are proud to work with our fellow stakeholders in the criminal justice system to offer the ATL Court as an alternative to incarceration program for our district,” said U.S. Attorney Ryan K. Buchanan. “Through intense supervision and treatment resources, the ATL Court enhances safety in our district by addressing the root causes of the participants’ previous criminal behavior and places them onto a path of crime-free, productive lives.”
“This program is the result of creative, resourceful, and justice-oriented lawyers and other officials. Our Court is grateful to all of them for their outstanding work,” said Timothy C. Batten, Sr., Chief U.S. District Judge for the Northern District of Georgia.
“The ATL Court’s first graduate faced a lengthy prison sentence and, in one year, she has turned her life completely around and earned a sentence of probation,” said Stephanie A. Kearns, Executive Director, Federal Defender Program, Inc. of the Northern District of Georgia. “This shows exactly why the ATL Court is so effective and valuable to all of us, and why it should continue long into the future.”
“History has been made in the Northern District of Georgia,” said Donna M. High, Chief U.S. Probation Officer for the Northern District of Georgia. “The ATL Court is a collaborative effort between several agencies, that requires a lot of time and commitment. The beauty of our collaboration is that it allows us to know more than we can know by ourselves, and when we do it correctly, everyone wins.”
U.S. Attorney Buchanan delivered an address to the program's first graduate and the current class of participants in the program. U.S. Magistrate Judge Catherine M. Salinas delivered remarks and presented the graduate with a diploma, recognizing her graduation from the program. Representatives of the Federal Defender Program, Inc. and the U.S. Probation Office also addressed the program participants.
Through treatment to address the substance use disorder, mental health condition, or other identified need driving participants' criminal conduct, through incentives to reinforce positive behavior, and through sanction alternatives, the ATL Court program provides an alternative to incarceration for federal defendants.
Participants in the program attend bi-monthly court sessions with members of the ATL Court team. The program provides a high level of supervision for its participants which lasts from 12 to 24 months. Successful completion of the program results in a non-custodial sentence, or a reduction of felony charges to a misdemeanor, or dismissal of the federal case.
Launched in 2022, the ATL Court program was created through a collaborative partnership of the U.S. Attorney's Office for the Northern District of Georgia, the Federal Defender Program, Inc., the U.S. District Court for the Northern District of Georgia, and the U.S. Probation Office. Further description of the program is available at https://www.gand.uscourts.gov/accountability-treatment-and-leadership-court-“atl-court”.For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Nineteen-Year-Old Man Sentenced to 27 Months in Prison for Trafficking 3D-Printed “Glock Switches” and “Auto-Sears”Read the Press Release
PEORIA, Ill. – A Washington, Illinois, man, Zavien James Ross, 19, was sentenced today to 27 months in prison, to be followed by three years of supervised release, after pleading guilty to possession of machineguns.
According to court documents, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives made two separate undercover purchases of Glock switches from Ross in November 2022, purchasing a total of nine 3D-printed Glock switches and one 3D-printed auto-sear designed for an AR-15 rifle. Machinegun conversion devices, sometimes called “Glock switches” or “auto-sears,” are devices that convert ordinary semiautomatic firearms into fully automatic machineguns. Machinegun conversion devices are themselves considered machineguns under federal law, even when not installed, and are illegal to possess or sell in almost all cases.
Later in the investigation Ross was arrested by the Peoria Police Department on November 28, 2022, for possessing a firearm in a car during a traffic stop. On November 29, 2022, ATF agents conducted a search of Ross’s residence and located a 3D printer, five additional 3D printed Glock switches, and two 3D printed pistol lower receivers.
Ross was arrested and then indicted in February 2022. He was released on bond with pre-trial conditions. However, a petition for revocation of bond was filed in September 2023 when a probation officer found various pieces of counterfeit money and forged checks during a home visit. Ross surrendered shortly thereafter and has remained in the custody of the U.S. Marshals Service.
The statutory penalties for possession of machineguns are up to 10 years’ imprisonment, up to a three-year term of supervised release, and a possible fine of $250,000. Ross also has pending charges in Peoria County, Illinois, for unlawful use of a weapon and possession of a firearm without a Firearm Owners Identification card.
ATF investigated the case, with the assistance of the Peoria Police Department. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Ross 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.
Nine Arrested in Operation Targeting Ulster County Drug Trafficking OrganizationRead the Press Release
ALBANY, NEW YORK – Nine defendants have been indicted and arrested for their roles in a drug trafficking organization that distributed large quantities of cocaine and fentanyl in Kingston, Ellenville and other areas of Ulster County.
The announcement was made by United States Attorney Carla B. Freedman; Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations (HSI), New York; and Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT).
The organization is alleged to have distributed kilogram quantities of cocaine and fentanyl between March 2021 and January 2023, in Kingston, Ellenville and other areas of Ulster County. In executing search warrants on multiple residences in Ellenville, White Plains, the Bronx and Manhattan, law enforcement seized approximately 4 kilograms of fentanyl, 500 grams of cocaine, $600,000 in drug proceeds, and five firearms. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
United States Attorney Carla Freedman stated: “With today’s arrests we have dismantled an organization that brought large quantities of cocaine and fentanyl into the Hudson Valley. This case is the result of the close collaboration among federal, state and local law enforcement agencies that produces successful and significant drug trafficking prosecutions in Ulster County.”
HSI Special Agent in Charge Ivan Arvelo stated: “These 9 individuals are accused of drug-related crimes, all of which were allegedly part of their unlawful pursuit of money and power. But that ends today. HSI New York is proud to have partnered with the Ulster County Sheriff’s Office and New York State Police. Our shared commitment toward accomplishing our ultimate goal — justice — knows no bounds.”
Ulster County Sheriff Juan Figueroa stated: “Today’s operation is the culmination of hard work and collaboration between the U.S. Attorney's Office for the Northern District of New York, the Department of Homeland Security Investigations, the Ulster County Sheriff's Office, New York State Police, Ulster County District Attorney's Office and our Ulster Regional Gang Enforcement Task Force. Today we dismantled a drug trafficking organization that would have continued to distribute fentanyl in New York City, Westchester County and the Hudson Valley that could have killed people. The crimes associated with this organization and the negative impact they had on our communities cannot be understated. Great job to all of the agencies involved.”
The defendants arrested to date, all of whom are charged with conspiracy to distribute and possess with intent to distribute controlled substances, would face the following minimum and maximum terms of imprisonment upon conviction:
Name
Age
Residence
Minimum Term of Imprisonment
Maximum Term of Imprisonment
Christopher Baez, aka “Butta”
45
Manhattan, New York
10 years
Life
Joseph Logan, aka “Jazz” aka “Jabb”
32
Ellenville, New York
5 years
40 years
Joshua Morales, aka “Young”
34
Ellenville
5 years
40 years
Joshua Atkinson, aka “Swaggs”
26
Ellenville
10 years
Life
Luis Santiago, aka “Banks”
35
Ellenville
10 years
Life
Frankie Maldonado Jr.
36
Ellenville
5 years
40 years
Justin Torres
35
Ellenville
5 years
40 years
Erkan Denix, aka “E” aka “Ed”
38
Ellenville
5 years
40 years
Daryl Livingston, aka “Whiz”
35
Huguenot, New York
None
20 years
Additionally, Deniz is charged with possession with intent to distribute cocaine, Atkinson is charged with distribution of cocaine and fentanyl, and Santiago is charged with possession with intent to distribute cocaine and fentanyl.
This case is being investigated by HSI; the Ulster County Sheriff’s Office in conjunction with URGENT (the Ulster Regional Gang Enforcement and Narcotics Team), an inter-agency taskforce targeting drug dealers and gang members in Ulster County; the New York State Police; the Village of Ellenville Police Department; and the White Plains Police Department, with assistance from the Ulster County District Attorney’s Office. Assistant U.S. Attorneys Emmet O’Hanlon and Ashlyn Miranda are prosecuting this case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Nicaraguan Woman Pleads Guilty to Illegally Using Social Security NumberRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that JUNIETH BETANCO-HERNANDEZ, age 19, plead guilty on October 10, 2023 to illegally using a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court documents, BETANCO-HERNANDEZ was first encountered, and subsequently arrested, by the U.S. Border Patrol (USBP) near Hidalgo, TX, on or about September 30, 2022. BETANCO HERNANDEZ was later interviewed and determined to be unlawfully present and inadmissible into the United States. She was released from custody by U.S. Border Patrol and instructed to report to Immigration and Customs Enforcement in New Orleans, LA. In conjunction with her release, BETANCO-HERNANDEZ was enrolled in the “Alternative to Detention” program and provided a GPS device to monitor her location in the United States.
On or about March 28, 2023, BETANCO-HERNANDEZ reported to the BI Incorporated office in St. Rose, LA as requested. During her interview by a case specialist, she was asked to present her immigration related documents. BETANCO-HERNANDEZ handed over a Louisiana state ID with her name and photo and a Social Security Card. Through further investigation, it was determined that BETANCO-HERNANDEZ was not the individual who was issued that social security number. Additionally, Homeland Security Investigations agents confirmed that the number BETANCO-HERNANDEZ presented was issued by the Commissioner of the Social Security Administration to another individual, and not BETANCO-HERNANDEZ.
BETANCO-HERNANDEZ faces a maximum term of imprisonment of not more than five years, a maximum fine of up to $250,000, a maximum term of supervised release of up to three years, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
New York Man Pleads Guilty to Trafficking Firearms and MethamphetamineRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston to trafficking drugs and firearms.
Jason Lebberes, 31, of Tuckahoe, N.Y., pleaded guilty to one count of distributing more than 50 grams of methamphetamine; one count of transferring a firearm to an out-of-state resident; and one count of transferring a machinegun. U.S. District Court Judge Patti B. Saris scheduled sentencing for Jan. 17, 2024. Lebberes was arrested and charged in March 2023.
Lebberes sold more than 50 grams of methamphetamine, a privately manufactured firearm, commonly known as a “ghost gun” and a Glock switch. A Glock switch is a device that converts firearms into automatic weapons. The investigation revealed that Lebberes had sold numerous Glock switches to other customers in the past.
During a search of Lebberes’ residence, numerous handguns, assault rifles and ammunition were recovered, several of which were privately manufactured. A video of Lebberes discharging a handgun out of his car window was also recovered during the investigation.
The charge of possession with intent to distribute more than 50 grams of actual methamphetamine provides for a sentence of at least 10 years and up to life years in prison, at least five years of supervised release and a fine of up to $5,000,000. The charge of transferring a firearm to an out-of-state resident provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of transferring a machinegun provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office; Ketty-Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the New York State Police. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
New York Auto Repair Shop Owner Pleads Guilty to Tax FraudRead the Press Release
A New York man pleaded guilty today to conspiring to defraud the United States relating to his efforts to conceal income from the IRS.
According to court documents and statements made in court, Aniello Strocchia, of Maspeth, owned and operated an auto repair shop. From 2013 to 2017, Strocchia, along with others, cashed more than $1.3 million in checks payable to his auto shop at check-cashing businesses instead of depositing those funds into the business’ bank account. Strocchia concealed the check-cashing activity from his tax return preparers which resulted in the filing of false tax returns that underreported the auto repair shop’s gross receipts and ordinary business income, as well his total personal income. Strocchia used the unreported income on personal expenditures, including luxury car purchases and approximately $500,000 in extensive home renovations.
If convicted, Strocchia faces a maximum penalty of five years in prison. 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 Breon Peace for the Eastern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Matthew Cofer and Ann M. Cherry of the Tax Division are prosecuting the case.
New Salem, PA Resident Sentenced for Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, PA - A resident of New Salem, PA, has been sentenced in federal court to a 24-month term of imprisonment to be followed by a 3-year term of supervised release on his conviction of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman imposed the sentence on Jack Sparks, 49, of New Salem, PA.
According to information presented to the court, on or about July 6, 2022, Mr. Sparks possessed with intent to distribute a quantity of cocaine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
In imposing the sentence, Judge Stickman highlighted in part the dangers and harms associated with drug trafficking and the need to deter similar conduct in the future.
Assistant United States Attorney Benjamin C. Dobkin prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigations for the investigation leading to the successful prosecution of Sparks.
New Orleans Man Indicted for Trafficking Fentanyl and HeroinRead the Press Release
NEW ORLEANS, LOUISIANA – RODNEY OFFRAY, age 49, a resident of New Orleans, was charged on September 22, 2023 in a recently unsealed three-count indictment by a federal grand jury, announced U.S. Attorney Duane A. Evans.
The indictment alleges that OFFRAY distributed fentanyl and heroin on three occasions. Count 1 alleges that OFFRAY distributed quantities of heroin and fentanyl on July 24, 2023, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). For this offense, he faces up to twenty years imprisonment, a fine of up to $1,000,000, at least three years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
Counts 2 and 3 of the indictment allege that OFFRAY distributed 40 grams or more of fentanyl and a quantity of heroin on July 28, 2023 and July 31, 2023, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). For these offenses, he faces a statutory mandatory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Morris County Woman Charged wth Disability Benefits Fraud and Making False StatementsRead the Press Release
NEWARK, N.J. – A Morris County woman charged with fraud and making false statements will make her initial court appearance today, U.S. Attorney Philip R. Sellinger announced.
Pamela VanSyckle, 60, of Oak Ridge, is charged by complaint with one count of federal employee compensation fraud and one count of making false statements. VanSyckle made her initial appearance this afternoon before U.S Magistrate Judge José R. Almonte in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case:
VanSyckle works for the U.S. Postal Service as a rural carrier. In September 2020, VanSyckle signed and filed a claim form alleging that she sustained an injury at work. As a result of that injury, VanSyckle claimed that she was unable to carry out her duties as a mail carrier. While she received disability benefits from September 2020 to September 2023, VanSyckle signed and filed multiple federal claim forms alleging that she had not worked or had outside employment. Based on the submission of those claims, VanSyckle received over $155,000 in disability benefits from the federal government.
During the time in which she received disability benefits, however, VanSyckle was in fact working as the owner and operator of a travel agency. While claiming that she was neither self-employed nor involved in any business enterprise, VanSyckle performed a variety of services for the travel agency including handling sales, marketing and financial operations.
The fraud and false statement charges each carry a maximum potential sentence of five years in prison and a maximum of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense, whichever is greater.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modaferri; special agents of the U.S. Department of Labor – Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone; and members of the Jefferson Township Police Department, under the direction of Chief Paul Castimore, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
vansyckle.complaint.pdfMontana Man Pleads Guilty to Buying Firearms in Montana, Illegally Exporting Them to MexicoRead the Press Release
A Montana man pleaded guilty today to buying firearms in Montana and selling them to individuals in Mexico.
Cristyan Jose Gonzalez-Carrillo, 37, of Bozeman, pleaded guilty to illegal export before U.S. Magistrate Judge Kathleen L. DeSoto.
According to court documents, an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that from February 2020 to May 2020, Gonzalez-Carrillo purchased approximately 31 handguns. Law enforcement executed a search warrant at Gonzalez-Carrillo’s residence in July 2020 and recovered firearms and ammunition, including semi-automatic handguns and AR style rifles. Receipts seized during the search were from multiple stores in Montana for the purchase of firearms during that period. In addition, the investigation determined that Gonzalez-Carrillo’s vehicle plate records would demonstrate multiple border crossings at San Ysidro, California, from April 2020 to June 2020. Investigators also learned that Gonzalez-Carrillo purchased and advertised firearms for sale on the platform WhatsApp and sold firearms to individuals in Mexico.
“Every day across America, the Department of Justice is fighting the twin epidemics of gun violence and drug poisoning that shatter our communities,” said Deputy Attorney General Lisa O. Monaco. “To win that battle, we must root out and prosecute those who traffic illegal firearms to Mexico – where weapons end up in the hands of violent cartels that send deadly drugs back to the United States. Today’s guilty plea represents another step forward, but also a sobering reminder that the fight against cross-border firearms-trafficking is a nationwide challenge.”
“Buying guns in Montana and taking them to Mexico to sell is illegal,” said U.S. Attorney Jesse Laslovich for the District of Montana. “Fighting gun violence remains a top priority for our office and as today’s hearing showed, we will investigate and prosecute anyone who violates federal firearms laws.”
“Preventing unlawful firearms trafficking is a top priority of the ATF,” said ATF Director Steven Dettelbach. “Whether the unlawful trafficking is destined for a gang in the United States or a cartel in Mexico, we will work with our partners to stop it and hold accountable those who violate our nation’s firearms laws.”
Gonzalez-Carrillo faces a maximum penalty of 10 years in prison, a $250,000 fine, and three years of supervised release. Sentencing is set for Feb. 15, 2024, before U.S. District Judge Dana L. Christensen. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Gonzalez-Carrillo was detained pending further proceedings.
ATF investigated the case.
Assistant U.S. Attorney Tara J. Elliott for the District of Montana is prosecuting 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.
Monroeville Resident Sentenced for Violating a Federal Firearms LawRead the Press Release
PITTSBURGH, PA - A resident of Monroeville, PA, has been sentenced in federal court to imprisonment for 8 months on his conviction of violating a federal firearms law, United States Attorney Eric G. Olshan announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Matthew Alfaro, 23, of Monroeville, PA.
According to information presented to the court, on or about December 29, 2020, Mr. Alfaro knowingly made a false statement in connection with the acquisition of two firearms from a licensed firearms dealer, intending to deceive the dealer. Mr. Alfaro purchased a Glock model 22, .40 caliber pistol and a Springfield Armory model Saint, 5.56 caliber pistol from a Pittsburgh-area licensed firearms dealer. Mr. Alfaro stated on ATF Form 4473 that he was purchasing the firearms for himself, when in truth, he was purchasing them at the direction of another person, intending to deliver them to that person.
In to imposing the sentence, Judge Ranjan highlighted in part the harm caused by firearms violence, the impact that straw purchases like those carried out by Mr. Alfaro have on the community, and the need to deter such conduct in the future.
Assistant United States Attorneys Brendan J. McKenna and Benjamin C. Dobkin prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Alfaro.
Middlesex County Man Convicted of Persuading, Inducing and Enticing Victims for ProstitutionRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was convicted today of four counts of persuading, inducing, and enticing women to travel in interstate commerce to engage in prostitution, U.S. Attorney Philip R. Sellinger announced.
Jose Torres, 45, was convicted of all four counts of a second superseding indictment following a six-day trial before U.S. District Judge Brian R. Martinotti in Newark federal court.
According to the documents filed in this case and the evidence at trial:
From May 2015 to October 2019, Torres persuaded, induced and enticed female victims, often commercial sex workers, to travel from out of state locations, including Canada and New York, to engage in prostitution with him. In each instance, Torres trolled prostitution websites and targeted out-of-state sex workers. He lured them to New Jersey with promises of large sums of payment. Once the women were in New Jersey, Torres refused to pay them. When the victims asked for payment, Torres became aggressive, often assaulting and raping them.
Each charge of coercion and enticement carries a maximum term of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 27, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Emma Spiro and Shawn Barnes of the U.S. Attorney’s Office’s Criminal Division in Newark.
Manchester Man Sentenced to 4 Years in Federal PrisonRead the Press Release
CONCORD – A Manchester man was sentenced in federal court for possessing with intent to distribute cocaine in New Hampshire, U.S. Attorney Jane E. Young announces.
Emilio Flores, 31, was sentenced by Senior U.S. District Court Judge Steven McAuliffe to 48 months in prison and 3 years of supervised release. On April 12, 2022, Flores pleaded guilty to possessing with intent to distribute controlled substances.
“The defendant trafficked significant quantities of cocaine in New Hampshire,” said United States Attorney Jane E. Young. “The lengthy sentence imposed by the Court reflects that dealing drugs will not be tolerated in the Granite State, and that defendants who assault other inmates will face longer sentences.”
"Today’s sentence is a reminder to those who harm our communities – your criminal activity will not be tolerated, and you will be held accountable,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division.
“Let this sentencing be a strong message, the Manchester Police Department does not tolerate this criminal behavior, and this agency along with our law enforcement partners will continue to work tirelessly to get these repeat offenders behind bars,” said Manchester Police Chief Allen Aldenberg, “I am very encouraged by this outcome, and I believe it is strong proof that collaboration works.”
On September 1, 2021, Flores was arrested on an outstanding violation of state parole. A search of his Manchester residence yielded approximately 2 kilograms of cocaine. After pleading guilty to the drug charge in this case and awaiting sentencing, while incarcerated at the Strafford County House of Correction, Flores assaulted another inmate. An addendum to the plea agreement increased the length of his imprisonment by 12 months to take this conduct into account.
The Federal Bureau of Investigation and the Manchester Police Department jointly led the investigation. Valuable assistance was provided by the State of New Hampshire Probation and Parole Office. Assistant U.S. Attorneys Aaron Gingrande and Charles Rombeau prosecuted the case.
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MS-13 Gang Members Indicted for Two Murders on Long IslandRead the Press Release
An 11-count indictment was unsealed on October 4, 2023 in federal court in Central Islip charging Carlos Humberto Aquino-Hernandez, also known as “Caprichoso” and “Flaco” (“Aquino-Hernandez”), who is a member of the Coronados Locos Salvatruchas subgroup or “clique” of the MS-13, the violent transnational criminal organization La Mara Salvatruchas, and Gerson Hernandez, also known as “Steven Jefferson,” “Jeffrey,” “Serio,” “Serioso” and “Necio,” who is a member of the Hempstead Locos Salvatruchas clique of the MS-13, with multiple racketeering offenses in connection with two murders, a narcotics trafficking conspiracy, as well as with related charges of murder, conspiracy to commit murder, firearms offenses, and narcotics trafficking offenses.
Hernandez was arraigned this afternoon before United States Magistrate Judge Lee G. Dunst at the federal courthouse in Central Islip and was ordered detained pending trial. On October 6, 2023, Aquino-Hernandez was ordered removed in custody from the District of Maryland and will be arraigned in the Eastern District of New York at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in Charge, Federal Bureau of Investigation, New York Field Office (“FBI”), and Patrick J. Ryder, Commissioner, Nassau County Police Department (“NCPD”) announced the indictment and charges.
“The defendants allegedly committed two murders in furtherance of the MS-13 enterprise with all the gang’s hallmarks of senseless, brutal violence that endangers the entire community as evinced by unleashing gunfire outside a McDonald’s in broad daylight near a mother walking with her child,” stated United States Attorney Peace. “The defendants fleeing to another state proved futile thanks to the outstanding efforts of law enforcement to hold them accountable now in a federal courtroom on Long Island.”
Mr. Peace expressed his appreciation to the members of the FBI’s Long Island Gang Task Force, the NCPD, and the Nassau County District Attorney’s Office; as well as to the members of the FBI’s Baltimore Division and Cross Border Task Force, the Prince George’s County Police Department, the Montgomery County Police Department, the Montgomery County Division of the Maryland National Capital Park Police, and the United States Attorney’s Office for the District of Maryland for their tremendous assistance and partnership in this case.
“The actions of Aquino-Hernandez and Hernandez remind us that gangs are responsible for a significant percentage of violent crime in many jurisdictions, putting innocent people at risk as they avenge their rivals. The violence caused by MS-13 has terrorized our communities for far too long, and the FBI is committed to dismantling this violent gang and putting an end their atrocities once and for all,” stated FBI Assistant Director-in-Charge Smith.
The July 19, 2022 Murder of Walter Ochoa
Walter Ochoa was targeted by MS-13 members who suspected him of being a member of a rival street gang. Ochoa’s murder was also committed in retaliation for the killing of an MS-13 member 11 days earlier which the MS-13 blamed on the 18th Street gang. On the evening of July 19, 2022, Ochoa was with another individual in Uniondale Park when they were approached by the defendants and a third MS-13 member, who were armed with a .45 caliber handgun and at least one knife. After they shot Ochoa to death and stabbed him in the neck and abdomen, the three MS-13 members fled the park.
The September 14, 2022 Murder of Hector Valencia Gomez
Surveillance footage from the McDonald’s restaurant revealed that on the afternoon of September 14, 2022, Hernandez and an MS-13 associate were being chased by Gomez towards a dumpster next to the McDonald’s drive-thru. Hernandez waved over Aquino-Hernandez who was armed with a 9-millimeter handgun. Aquino-Hernandez fired at Gomez, who was running in between cars lined up at the drive-thru. Gomez stumbled several steps before collapsing, after which point Aquino-Hernandez fired additional rounds at Gomez as he lay on the pavement. The MS-13 associate also struck Gomez in the arm with a large knife. The surveillance video also shows a mother and her small child, several feet away from the attack, running for cover during the shooting. Hernandez and Aquino-Hernandez were later arrested in Maryland where they had traveled to avoid apprehension for the murders.
Finally, the defendants are charged with conspiring to distribute cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations, including purchasing firearms, ammunition and other weapons, and sending money to MS-13 leadership in Central America.
The indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras and Mexico, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 65 murders in the Eastern District of New York, and it has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, the NCPD, the Suffolk County Police Department, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Office, the Suffolk County Probation Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision.
If convicted, each defendant faces up to life in prison, or the possibility of the death penalty. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Megan E. Farrell, Justina L. Geraci, and Paul G. Scotti from the Office’s Long Island Criminal Division.
The Defendants:
CARLOS HUMBERTO AQUINO-HERNANDEZ ( also known as “Caprichoso” and “Flaco”)
Age: 22
Uniondale, New York and Baltimore, MarylandGERSON HERNANDEZ (also known as “Steven Jefferson,” “Jeffrey,” “Serio,” “Serioso” and “Necio”)
Age: 22
Hempstead, New YorkE.D.N.Y. Docket No. 23-CR-369 (JMA)
Luzerne County Woman Sentenced to Three Years in Prison for Straw Purchasing FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Quinniea Gross, age 27, of Wilkes Barre, Pennsylvania, was sentenced on October 10, 2023, to 36 months in prison by United States District Court Judge Malachy E. Mannion for giving false statements in connection with acquisition of firearms.
According to United States Attorney Gerard M. Karam, Gross was convicted by a jury of conspiracy and straw purchasing firearms in July 2023. Gross accompanied a drug addict to several firearms dealers in Northeastern Pennsylvania and took possession of firearms purchased by her coconspirator. Gross did so for drug traffickers to whom the drug addict owned money for a drug debt. Gross also purchased four firearms herself, two of which were seized in an unrelated drug trafficking investigation in Philadelphia. Coconspirator Christian Barnes was sentenced to 15 months in prison on August 1, 2023, for conspiracy to make false statements in connection with the acquisition of eight firearms.
In addition to the 3-year prison term, Judge Mannion ordered Gross to serve a 2-year term of supervised release, and to pay $400 in special assessments and court fees.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Luzerne County District Attorney’s Office. Assistant U.S. Attorneys Brian Gallagher and Todd K. Hinkley prosecuted the case.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
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Level 3 Sex Offender Pleads Guilty to Receiving Child Pornography from a Minor He Solicited on TikTokRead the Press Release
BOSTON – A Boston man pleaded guilty today to coercing a minor he found on TikTok to send him child sexual abuse material.
Hector Acevedo, 33, of Jamaica Plain, pleaded guilty to one count of receipt of child pornography. U.S. District Judge Patti B. Saris scheduled sentencing for Jan. 24, 2024.
Acevedo is a Level 3 registered sex offender. Acevedo was previously convicted in Suffolk County Superior Court on multiple child and sexual exploitation offenses including trafficking of a person for sexual servitude, extortion by threat of injury, posing or exhibiting a child in state of nudity or sexual conduct, dissemination of matter harmful to minors, dissemination of child pornography and purchase or possession of child pornography. On Feb. 13, 2018, Acevedo was sentenced to five-to-seven years in state prison and three years of probation.
While on state probation, Acevedo solicited a minor via TikTok and coerced the victim to engage in sexual conduct over video chat.
The charge of receipt of child pornography by an individual previously convicted of a child pornography offense provides for a sentence of at least 15 years and up to 40 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Arlington and Revere Police Departments. Assistant U.S. Attorney Elianna Nuzum of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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.
Leader of Craven County Armed Drug Organization Trafficking Methamphetamine and Fentanyl Sentenced to 35 YearsRead the Press Release
RALEIGH, N.C. – The leader an armed drug-trafficking organization (DTO) responsible for moving kilogram quantities of methamphetamine and fentanyl in and around the Craven County area was sentenced yesterday to 420 months in prison for drug trafficking and gun charges. On March 3, 2023, Ivan Leonardo Medina-Beltran, age 45, pled guilty to the charges. Medina-Beltran is an undocumented noncitizen from Sonora, Mexico.
“Medina-Beltran supplied kilogram quantities of fentanyl and methamphetamine to the New Bern area. He even tried to coordinate the shipment of nearly a kilogram of highly pure methamphetamine to Eastern North Carolina while he was held in jail. The 35-year sentence stands as a warning to would-be drug traffickers. The U.S. Attorney’s Office is partnering with Craven County every day to keep deadly narcotics off our streets, and dismantling the drug-trafficking networks that supply them,” said U.S. Attorney Michael Easley.
“We are committed to collaborating with our law enforcement partners to investigate, disrupt and dismantle transnational criminal organizations that are responsible for the illicit distribution of methamphetamine and fentanyl that has resulted in the death of thousands and the ruining of lives and families throughout the country,” said Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) Charlotte that covers North and South Carolina. “This sentence sends a strong message to narcotic distributors that law enforcement will work aggressively with the United States Attorney’s Office to combat the poisoning of our communities with these egregious and dangerous drugs and bring those involved to justice.”
“This prosecution by the U.S. Attorney’s Office has eliminated a major source of methamphetamine and fentanyl in Craven County” said Sheriff Chip Hughes. “The Craven County Sheriff’s Office Special Investigations Bureau will continue to work with our federal, state, and local law enforcement partners to investigate, arrest, and prosecute drug traffickers.”
According to court documents and other information presented in court, HSI, the Drug Enforcement Administration (DEA), and Craven County Sheriff’s Office in coordination with federal, state, and local law enforcement partners launched an investigation into a cartel-connected drug trafficking organization responsible for acquiring kilogram quantities of methamphetamine and fentanyl from the southwest border and distributing them in and around Craven County. Through the use of confidential sources, surveillance and controlled buys, law enforcement identified several high-level operatives in the organization, including the leader, Medina-Beltran.
From January to October 2022, law enforcement conducted sixteen controlled purchases of ice methamphetamine, fentanyl, and cocaine from Medina-Beltran and other members of the conspiracy. Medina-Beltran sold narcotics directly to confidential informants working at the direction of law enforcement. On September 7, 2022, he sold over 60 grams of fentanyl to a confidential informant, while on September 8, 2022, he sold over 290 grams of ice to a confidential informant.
On October 31, 2022, multiple search warrants were executed at residences associated with the DTO, including the residence of Medina-Beltran. The search of his home yielded five grams of cocaine, an AR-15 style 5.56 rifle, a .45 caliber handgun, and cash.
While in pretrial custody, Medina-Beltran coordinated a shipment of approximately two pounds of ice methamphetamine from California to the Eastern District of North Carolina, which was seized by law enforcement.
Multiple other individuals associated with the DTO, including two other high-level operatives have been indicted. Xavier Garza (4:22-cr-00075-D-3) pled guilty to drug trafficking and firearm charges on May 16, 2023. Sentencing is pending in his case.
This investigation was an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Drug Enforcement Administration; Homeland Security Investigations; United States Postal Inspection Service; the North Carolina State Bureau of Investigation; the Craven County Sheriff’s Office, and the New Bern Police Department investigated the case and Assistant U.S. Attorneys Katherine Englander and Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-cr-00075-D-1.
Law Enforcement Agencies in Western Washington receive more than $3.6 million in U.S. Department of Justice Grant FundingRead the Press Release
Seattle – More than a dozen law enforcement agencies in western Washington received U.S. DOJ Byrne grant funding to support local needs ranging from body-worn camera programs, to specialized equipment needs, to community outreach programs, announced Acting U.S. Attorney Tessa M. Gorman. The grants have been awarded over the last few weeks in advance of the new fiscal year.
“The largest amount of Byrne Grant funding, some $2 million, goes to the King County Sheriff’s Office to pay for implementation of body-worn cameras and for hiring mental health professionals as part of the King County Crisis Intervention team,” said Acting U.S. Attorney Gorman. “But even the smaller grants can make a big difference in jurisdictions where leaders have identified specific needs in their communities.”
The City of Seattle was awarded $918, 880 as the fiscal agent for a dozen neighboring jurisdictions. Some of the grant funding includes: $38,323 for fireworks emphasis patrols in Auburn; $10,861 for de-escalation tools in Des Moines; $11,310 for less lethal equipment in Shoreline; and $369,623 to help fund anti-crime coordinators in Seattle. The coordinators will work with populations that have special needs such as the elderly, immigrant, or disabled members of our community.
These are the other Byrne grant recipients and the grant purpose:
Bremerton - $17,240 – Crime prevention activities and initiatives
Port Angeles/Clallam County - $13,720 – Body worn camera program
Marysville - $13,541 – fingerprinting equipment, street cameras, language programs
Puyallup - $13,396 – automated fingerprint equipment
Longview - $11,852 – School resource officer
Lynnwood - $11,780 – firearms and accessories for officers
Everett - $39,544 – polygraph and police pursuit equipment
Kitsap County - $45,613 – purchase of police training simulator
Lakewood - $45,051 – video monitoring equipment and crime analysis software
Bellingham/Whatcom County - $47,374 – equipment for the Civil Disturbance Unit and citizen engagement software. Whatcom Co. - officer safety equipment.
Clark County - $140,576 – to strengthen community policing and enhance public protection
Tacoma/Pierce County - $358,803 – Tacoma: youth crime reduction programs. Pierce County: sex offender records management and notification.
The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988. Officer Byrne was just 22 years old.
Las Vegas Contractors Sentenced to Prison for Release of Asbestos at Marijuana Grow FacilityRead the Press Release
LAS VEGAS – Rene Morales and Hector Vasquez were each sentenced to six months in prison yesterday for violating the Clean Air Act during the renovation of a Las Vegas warehouse into a marijuana growing facility. Both men pleaded guilty earlier this year to violating the Clean Air Act by releasing toxic asbestos fibers into the air during the renovation work. Inhalation of airborne asbestos fibers can cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. Congress and the Environmental Protection Agency (EPA) have determined that there is no safe level of exposure to asbestos.
According to documents filed with the Court, the defendants’ firm Top Rank Builders was hired to renovate the warehouse located at 2310 Western Avenue into a facility suitable for growing marijuana. During the renovation, the defendants caused workers to remove drywall and ceiling texture that the defendants should have known would contain asbestos, without employing any abatement measures. This resulted in the release of asbestos fibers into the air, placing workers and the community in imminent danger of death or serious bodily injury from inhalation of the toxic fibers.
The defendants also admitted to lying to investigators about their involvement in the renovation, and to taking steps to cover up the removal by claiming that bags marked “asbestos” were intended for a training exercise rather than disposal of asbestos-containing materials at the warehouse.
“Failure to comply with federally-mandated protocols for asbestos is a serious offense with serious consequences in the District of Nevada,” said United States Attorney Jason M. Frierson for the District of Nevada. “These crimes endanger the lives of workers, tenants, and the community at large. Our Office will continue to work with our federal, state and local partners to hold those seeking to cut corners on asbestos remediation accountable.”
“The defendants knowingly ignored regulations on the safe management of asbestos, putting workers and the public at risk,” said Acting Special Agent in Charge Benjamin Carr of EPA’s Criminal Investigation Division in Nevada. “The sentences demonstrate that the EPA and our law enforcement partners will pursue and prosecute those who intentionally violate environmental laws and endanger our communities.”
Special agents of the EPA and employees of the Clark County Department of Air Quality investigated the case. Senior Trial Attorney Cassandra Barnum of ENRD’s Environmental Crimes Section and Assistant United States Attorney Jean Ripley for the District of Nevada prosecuted the case.
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Justice Department Secures Agreement in Tennessee School Desegregation CaseRead the Press Release
The Justice Department announced today that it has secured an agreement to improve and expand educational opportunities for students in the Fayette County School District in Tennessee. The consent order was approved by U.S. District Court Judge S. Thomas Anderson for the Western District of Tennessee as part of a longstanding school desegregation case.
Under the consent decree, the school district will improve its practices for identifying and serving students in its gifted programs and in dual enrollment classes, which give high school students access to college-level coursework; bolster efforts to recruit and retain diverse faculty; and revise student discipline policies to prevent racial discrimination and support a positive climate, including by ending the use of corporal punishment.
“School desegregation and equal access to a quality education was critically important nearly 70 years ago when the Supreme Court decided Brown v. Board, and it is critically important today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in our commitment to making real the promise of Brown and dismantling the legacy of discrimination in our schools. This consent decree is a giant step forward for students deserving of racially just and equitable outcomes in Fayette County Schools. These reforms will expand access to enriched academic opportunities and give students the positive, inclusive learning environment they need to thrive.”
As part of the consent decree, the court declared the district had met its desegregation obligations in several areas of operations, including staff assignment, facilities, transportation and extracurricular activities. The consent decree also provides that the district will, among other requirements:
- Work with the Justice Department and private plaintiffs represented by the NAACP Legal Defense Fund to develop an effective and sustainable student assignment policy to further desegregation in its schools;
- Adopt a plan to ensure that all students, including Black students, are properly identified for enrollment in its gifted program and that the district delivers gifted services to properly designated students in a nondiscriminatory manner;
- Review its enrollment in advanced and dual enrollment courses in secondary schools to identify any racial disparities and implement practicable responses designed to reduce barriers that limit the participation of Black students;
- Work with a consultant to implement changes to its student discipline policies designed to reduce racial disparities in discipline, and instill positive reinforcement techniques;
- Eliminate the use of corporal punishment, a practice that undermines effective implementation of positive behavioral interventions; and
- Conduct a comprehensive review of the district’s hiring policies and procedures to identify racial disparities in the recruitment, hiring, promotion and retention of Black faculty and implement appropriate remedial measures.
Next year marks the 70th anniversary of the U.S. Supreme Court’s decision in Brown v. Board of Education. The Justice Department’s Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law, to ensure that all children can access the building blocks of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report.
fayette_consent_order.pdfJustice Department Announces Indictment Against Two Men for Trafficking Protected BirdsRead the Press Release
The Justice Department today announced the unsealing of an indictment charging Dr. John Waldrop, 74, of Cataula, Georgia, and Toney Jones, 53, of Eufala, Alabama, on conspiracy, smuggling, Endangered Species Act (ESA) and money laundering charges. An arraignment in federal court is scheduled for Oct. 16.
The indictment alleges that Waldrop and Jones illegally imported hundreds of taxidermy bird mounts and thousands of eggs into the United States between Jan. 1, 2016, and Dec. 10, 2020; they did not import any live birds. U.S. law and regulations require that importers declare wildlife to the U.S. Fish and Wildlife Service (USFWS) and Customs authorities. Permits are also required for wildlife protected by the ESA, Migratory Bird Treaty Act (MBTA) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
“The Endangered Species Act is a vital law in the fight against international trafficking of protected wildlife,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Rare and endangered birds have important roles in their habitats, and we are committed to preventing and deterring their unlawful removal.”
“It is in our national and global interest to enforce federal laws and treaties that protect endangered birds from the harm of alleged profiteers like the defendants, and the Eastern District of New York will do so,” said U.S. Attorney Breon Peace for the Eastern District of New York.
“This investigation highlights the immense pressure illegal trade places on imperiled bird species around the world, and the Service's commitment to upholding laws and treaties that prevent the exploitation of foreign and domestic species,” said Assistant Director Edward Grace of the USFWS Office of Law Enforcement. “We hope this indictment sends a clear message that our investigators will work tirelessly to seek justice for poached wildlife.”
According to the indictment, Waldrop and Jones used online sales sites such as eBay and Etsy to buy birds and eggs from around the world, including Germany, Hungary, Iceland, Italy, Lithuania, Malta, Russia, South Africa, the United Kingdom and Uruguay. Waldrop and Jones imported and collected myriad species of protected birds, such as canary, dipper, duck, eagle, falcon, grouse, gull, hawk, heron, hoopoe, kestrel, kinglet, lapwing, murre, owl, parrot, pochard, rail, teal, snipe, spoonbill, vulture and woodpecker.
In addition to the conspiracy, the indictment charges Waldrop and Jones with importing three packages containing birds and eggs in 2020 through John F. Kennedy International Airport in violation of smuggling and ESA laws. The packages contained a Levant sparrowhawk, a grasshopper buzzard-hawk, two gull eggs, two murre eggs and one unidentified bird egg. The final count of the indictment alleges that Waldrop and Jones conspired to commit money laundering by sending funds out of the United States to finance bird smuggling. The indictment also seeks forfeiture of 779 bird mounts and 2,594 eggs alleged to have been illegally imported into the United States.
The maximum sentence for the smuggling and money laundering charges is 20 years in prison and a $250,000 fine, or twice the economic gain or loss. The conspiracy charge carries a five-year maximum sentence, and the ESA is punishable by six months in prison.
The CITES treaty regulates trade in endangered or threatened species through permit requirements. The United States and 183 other countries are signatories to the CITES treaty, which regulates trade in endangered or threatened species through permit requirements. The MBTA implements treaties with Canada, Japan, Mexico and Russia to protect many native U.S. bird species that also have habitats in those countries.
The USFWS’s Office of Law Enforcement in Valley Stream, New York, conducted the investigation as part of Operation Final Flight. The operation focused on the trafficking of protected birds into the United States. The U.S. Postal Inspection Service and Alabama Department of Conservation and Natural Resources assisted with the investigation.
The government is represented by Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Anna Karamigios for the Eastern District of New York.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.