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25 September 2023
Huntington Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Nigel Jamille Coats, 19, of Huntington, was sentenced today to nine months in prison, to be followed by three years of supervised release, for possession of a stolen firearm.
According to court documents and statements made in court, on July 15, 2022, Brennon Michael Adkins, 22, and TJ Jazz Cremeans, 21, both of Huntington, broke into Tri-State Pawn and Jewelry in Huntington to steal various electronics from the store’s inventory. After entering, Cremeans stole three firearms. Coats admitted that he was in a vehicle with Adkins and Cremeans prior to and following their breaking and entering at the business. Coats further admitted that he possessed one of the stolen firearms, a DPMS, model AR-15, 5.56mm rifle, shortly after the breaking and entering and theft was completed.
Cremeans pleaded guilty to theft of firearms from a federal firearms licensee on June 27, 2023. Cremeans admitted that he stole the AR-15 along with a Savage Arms model 111 .30-06-caliber rifle and a Stoeger model M3000 12-gauge shotgun during the breaking and entering. Adkins pleaded guilty to possession of a stolen firearm on May 1, 2023, admitting that he possessed the shotgun following the breaking and entering. Cremeans and Adkins await sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Troy D. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-213.
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Henry County Man Indicted for $1.3 Million Real Estate ScamRead the Press Release
ROANOKE, Va. – A federal grand jury in Roanoke returned an indictment last week charging a Fieldale, Virginia man with engaging in a fraud scheme in connection with a residential real estate transaction valued at more than $1.3 million.
According to court documents, Herman Lee Estes Jr., 40, who was on federal pretrial supervision due to an illegal firearms charge, contacted a real estate agent on January 17, 2023, inquiring about purchasing a Roanoke County property then listed at $1.2 million.
Estes falsely represented to the agent that he was due a tax refund of $18 million, which would soon be transferred to his estate as part of a trust.
On January 25, 2023, Estes pled guilty to federal firearms charge and remained on pretrial release pending sentencing.
In March 2023, Estes again contacted the real estate agent, falsely stating that his tax refund had cleared, and he was ready to move forward with the purchase of the property. At Estes’s direction, the real estate agent prepared a cash offer for the property in the amount of $1.3 million.
To prove he had funds available, Estes provided a letter, dated March 29, 2023, which indicated he had been approved for a private real estate loan in the amount of $1,315,000. In addition, Estes provided the real estate agent a phone number for a person he represented to be the manager of his purported trust. The real estate agent contacted this individual, who falsely claimed to be Estes’s trust manager and then approved the cash offer. The contract was ratified, and the parties proceeded to closing.
On April 10, 2023, Estes provided the settlement company a 62-page ‘extension of credit’ document, which he falsely represented to be trust documents, as part of his closing procedures. Estes stated that he did not deal with public banks but rather dealt ‘directly with the Federal Reserve Bank’.
Estes paid for the property with a fraudulent cashier’s check, with a routing number purported to be drawn from the Federal Reserve Bank in Richmond, in the amount of $1,307,199.43. He shipped the check via FedEx on April 12, 2023.
On April 13, 2023, the fraudulent check was deposited by a settlement company into its account at American National Bank and Trust. Closing for the sale occurred the following day, the deed was recorded with the Circuit Court of Roanoke County, and Estes took possession of the property.
On April 17, 2023, the purported cashier’s check was returned by the Federal Reserve Bank of Richmond and marked fraudulent.
Estes is charged with one count of bank fraud, one count of wire fraud, and one count of mail fraud, and with committing each of these offenses while on federal pretrial release. If convicted, he faces a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, which handled the previous federal firearms investigation, is investigating this case, with assistance from the Internal Revenue Service. The Federal Reserve Board, Office of Inspector General, and the Roanoke County Police Department have also assisted in the investigation.
Assistant U.S. Attorney Kristin B. Johnson is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Helena contract carrier sentenced for stealing mail on rural routesRead the Press Release
HELENA — A carrier who delivered mail for the U.S. Postal Service was sentenced today after she admitted to stealing mail from her route in search of cash and gift cards from more than 90 victims, U.S. Attorney Jesse Laslovich said.
Chief U.S. District Judge Brian M. Morris sentenced Katie Elizabeth Bowlds, 39, of Helena, to two years of probation and ordered $1,847 restitution. Bowlds pleaded guilty in April to possession of stolen mail.
“I hope the restitution ordered today will help make up for the missed birthday, anniversary, and special occasion gifts that Bowlds robbed from people, including kids, when she stole mail and rifled through greeting cards for cash and gift cards. Mail is necessarily private, and the public expects and deserves to have their mail delivered intact to its intended recipients. Bowlds’ actions eroded this trust, and I am pleased she is being held accountable for her criminal conduct,” U.S. Attorney Laslovich said.
The government alleged in court documents that in 2022, Bowlds worked as a contract delivery services carrier for the U.S. Postal Service on a rural route in Helena. In the spring of 2022, Bowlds stole hundreds of greeting cards from her postal route in search of cash and gift cards. Many of these greeting cards contained small denominations of cash and gift cards and were intended for birthdays, anniversaries and other life events. The cards never reached the intended recipients because of Bowlds’ thefts. Bowlds’ actions affected more than 90 victims.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case. The U.S. Postal Inspection Service conducted the investigation.
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Garryowen man admits role in large-scale meth trafficking ring based on Crow Indian ReservationRead the Press Release
BILLINGS — A Garryowen man on Sept. 22 admitted to selling methamphetamine to others as part of a large-scale trafficking ring that was based on the Crow Indian Reservation, U.S. Attorney Jesse Laslovich said today.
Zachary Douglas Bacon, 35, pleaded guilty to possession with intent to distribute meth. Bacon faces a mandatory minimum of 10 years to life imprisonment, a $10 million fine and at least five years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Jan. 25, 2024. Bacon was released pending further proceedings.
In court documents, the government alleged that federal law enforcement, in a collaborative effort with local and tribal law enforcement, investigated a large-scale, multiple-state narcotics trafficking operation centered on properties on the Crow Indian Reservation. The properties, including one known as Spear Siding, were a source of supply of meth for both Crow and the Northern Cheyenne Indian Reservations. Bacon is one of the individuals affiliated with the investigation.
The government further alleged that in October 2022, Bacon sold two ounces of meth to an individual and that the meth came from Spear Siding. Investigators also determined that Bacon sold meth that he regularly obtained from Spear Siding to others.
Assistant U.S. Attorneys are prosecuting the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Former agent admits to scheme to illegally employ non-immigrants for American companyRead the Press Release
LAREDO, Texas – A former Border Patrol (BP) agent and another individual have entered a guilty plea to employing illegal aliens by fraudulently obtaining immigration permits, announced U.S. Attorney Alamdar S. Hamdani.
Ricardo Gonzalez, 40, and Alex Lopez, 33, Laredo, entered a guilty plea to conspiracy to defraud the United States.
Gonzalez operated a company known as Gonmor Transportation. Lopez was the office manager. Gonzalez was also an active BP agent.
The multi-year scheme involved the company recruiting and hiring non-immigrants to work as commercial truck drivers, but then paid them less due to their citizenship status. As part of the scheme, Gonzalez’s company would provide these new hires with a letter to take to one of the ports of entry in Laredo. The letter had information claiming the driver was working for a Mexican trucking company and was requesting an I-94 travel permit so he could enter the United States, pick up cargo and return to Mexico.
As part of their respective pleas, each admitted to knowing the drivers were not working for this Mexican company, yet still providing the letter to assist in obtaining the I-94 permit. Once these drivers obtained the permit, Gonmor paid them to transport cargo within the United States, in violation of the permit terms.
A Mexican driver with a valid non-immigrant visa who works for a Mexican transportation company and is paid by them in Mexico may obtain an I-94 at one of the ports of entry. With it, the driver can travel with a load into the United States, go beyond the checkpoints to his or her final destination then return to Mexico. An I-94 does not allow the holder to work in the United States or for a U.S.-based company.
Gonzalez and Lopez admitted to knowing the people they were hiring to drive trucks for the company were not allowed to work in the United States, that the company paid these people less because of their status and that the I-94 permit did not authorize these individuals to work in the United States.
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, each faces up to five years in federal prison and a possible $250,000 maximum fine.
Gonzalez and Lopez were permitted to remain on bond pending sentencing.
Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
Former Federal Correctional Officer Pleads Guilty to Sexual Abuse of a WardRead the Press Release
A former correctional officer at the Federal Medical Center in Lexington, Kentucky, pleaded guilty today before U.S. District Judge Karen Caldwell to sexual abuse of a ward.
According to his plea agreement, beginning on Sept. 3, 2022, through Sept. 19, 2022, while employed as a correctional officer at the Federal Medical Center in Lexington, Kentucky, Dustin B. Sparks, 29, knowingly engaged in a sexual act with an inmate on one or more occasions.
“As this latest prosecution demonstrates through today’s guilty plea, the Department of Justice remains vigilant and dedicated to rooting out sexual misconduct at the Federal Bureau of Prisons,” said Deputy Attorney General Lisa O. Monaco. “Any employee of the Federal Bureau of Prisons who abuses their authority and mistreats those in their custody will be held accountable.”
“The Department of Justice Office of the Inspector General (DOJ-OIG) will continue to aggressively investigate Federal Bureau of Prisons employees accused of sexual abuse of inmates,” said Inspector General Michael E. Horowitz. “Today’s announcement should send a clear message that this kind of conduct will not be tolerated, and perpetrators will be brought to justice.”
“Those charged with the custody and care of inmates have a profound responsibility, both to those in their care and the public,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “We remain steadfast in our efforts to prevent and prosecute criminal misconduct by those entrusted with that grave responsibility.”
DOJ-OIG investigated the case, with assistance from the FBI Louisville Field Office.
Assistant U.S. Attorney Zach Dembo for the Eastern District of Kentucky is prosecuting the case.
Sentencing is scheduled for Dec. 19. Sparks faces a maximum penalty of 15 years in prison and up to a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines other statutory factors.
The Federal Bureau of Prisons (FBOP) is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous FBOP employees working diligently to ensure justice for the victims of sexual misconduct are critical to the Department’s reform efforts.
Five Cleveland-Area Men Sentenced to Imprisonment and Ordered to Pay over $800,000 as part of a Pandemic Unemployment Assistance Fraud SchemeRead the Press Release
CLEVELAND – United States Attorney Rebecca C. Lutzko announced today the conclusion of a case involving five Cleveland-area men that were charged in a 47-count indictment for illegally obtaining more than $800,000 in pandemic unemployment insurance benefits using other people’s personal identifying information. The defendants were sentenced to a combined total of 284 months of imprisonment.
According to court documents, from May to October 2020, the defendants, Errol Bennett, Jr., 26, of University Heights; Kojo Lockhart, 29, of Cleveland Heights; Mauri Nichols, 25, of South Euclid; Khyri Grace, 30, of Cleveland Heights; and Malik Grace, 26, of Cleveland Heights; submitted and caused the submission of fraudulent applications for pandemic unemployment insurance benefits to the California Employment Development Department (EDD), and other State Workforce Agencies around the country.
As part of the scheme, the members of the conspiracy knowingly made false statements and omissions on pandemic unemployment insurance benefits applications regarding employment history, residency, and more to appear eligible to receive benefits. As a result, California EDD and other State Workforce Agencies approved more than $800,000 in unemployment insurance benefits in the names of unwitting individuals. The benefits were pre-loaded on bank-issued debit cards and sent through the U.S. mail. After receiving the debit cards, the defendants used the cards issued in the names of other people to make cash withdrawals at various ATMs in the Northern District of Ohio.
The Court determined each defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. The defendants received the following terms of imprisonment: Errol Bennett, 54 months; Kojo Lockhart, 48 months; Mauri Nichols, 78 months; Khyri Grace, 60 months; and Malik Grace, 44 months. The defendants were also ordered to pay $872,143 in restitution for fraudulently obtained benefits.
The Department of Labor, Office of Inspector General, the Federal Bureau of Investigation, and the United States Postal Inspection Service investigated this case with assistance from the Cleveland Heights Police Department. This case was prosecuted by Assistant U.S. Attorney Kathryn Andrachik and Alejandro Abreu.
Felon Pleads Guilty to Trafficking Firearms in VallejoRead the Press Release
SACRAMENTO, Calif. — Jeremy Michael Benner, 39, of San Diego, pleaded guilty today to unlawful dealing in firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2022 to August 2023, Benner sold firearms to a confidential informant on four separate occasions in Vallejo. One of the firearms had previously been reported stolen, and three of them came with extended magazines. Benner did not have a license as a firearms dealer, and could not have obtained a license if he tried because he is a previously convicted felon.
This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Benner is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Dec. 11, 2023. Benner faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Federal Jury Convicts Colorado Springs Woman for Her Role in a Conspiracy to Distribute Fentanyl that Resulted in DeathRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Marlene McGuire, age 58, of Colorado Springs, was found guilty for her role in a conspiracy to distribute fentanyl resulting in the death of a juvenile. A federal jury in Denver returned guilty verdicts against McGuire on Friday, September 22, 2023, after approximately two-hours of deliberation.
According to the facts established at trial, on January 30, 2022, McGuire sold four pills which contained fentanyl and para-fluorofentanyl to the three juveniles near a fire station in the Security-Widefield area of Colorado Springs. On January 31, 2022, a father of one of the juveniles and his stepmother discovered the juvenile deceased in his bedroom in their home. Police and a deputy coroner found paraphernalia used for smoking fentanyl pills in the juvenile’s room and two blue pills in a baggie in his dresser drawer. After an autopsy, the El Paso County Coroner’s Office determined the juvenile’s cause of death was acute fentanyl and para-fluorofentanyl toxicity. The Drug Enforcement Administration (DEA) Western Laboratory tested the two pills found in the juvenile’s dresser drawer. Both pills contained para-fluorofentanyl. One of the two pills also contained fentanyl, lidocaine, and xylazine.
An investigation by the Federal Bureau of Investigation (FBI) and the Colorado Springs Police Department (CSPD) identified McGuire and a co-defendant as the individuals who sold the blue pills and also revealed that they had been engaged in a conspiracy to sell various controlled substances—including methamphetamine, heroin, cocaine, and blue pills—since at least May 2020. On February 21, 2022, the FBI and CSPD executed a federal search warrant at McGuire’s long-time residence in Colorado Springs. In addition to finding both McGuire and a co-defendant in the residence, law enforcement officers located and seized methamphetamine, heroin, cocaine, and a blue pill which contained fentanyl.
“Fentanyl is a deadly poison that is killing our children,” said U.S. Attorney Cole Finegan. “We are grateful to the Federal Bureau of Investigation and the Colorado Springs Police Department for their work in this investigation, and their collective efforts to keep our communities safe from this deadly epidemic.”
“Fentanyl is a deadly plague consuming our communities. In this case, the defendant was part of a conspiracy that led to the overdose death of a young man,” said FBI Denver Special Agent in Charge Mark Michalek. “The cooperation with our law enforcement partners in Colorado Springs made this result possible. The family of the deceased young man can know that those who supplied the deadly drugs have been held accountable and will no longer be able to provide poison to other juveniles.”
“The Colorado Springs Police Department is grieving with the family of the child who was killed and hopes that the successful prosecution of this case brings some measure of justice,” said Commander Doug Trainer, CSPD Metro Division. “We take the distribution of fentanyl in our community seriously. We are thankful for our federal partners at the FBI and the United States Attorney’s Office who assisted with the investigation and prosecuted this case. We want to reassure our community that we will continue to fight the fentanyl epidemic alongside our federal partners.”
United States District Court Judge Regina M. Rodriguez presided over the week-long jury trial. Sentencing is scheduled for December 6, 2023.
The FBI and the Colorado Springs Police Department conducted the investigation. Assistant United States Attorneys Alyssa Mance and Peter McNeilly handled the prosecution.
Case Number: 22-cr-00080
FBI Statement on Baton Rouge Police Department InvestigationRead the Press Release
The New Orleans FBI Field Office, the Civil Rights Division, and the U.S. Attorney’s Office for the Middle District of Louisiana have opened a federal investigation into the Baton Rouge Police Department and allegations that members of the department may have abused their authority. Experienced prosecutors and agents are now reviewing the matter for potential federal violations.
FBI New Orleans asks anyone who might have information in this case to contact us at 1-800-CALL-FBI (1-800-225-5324) or online at tips.fbi.gov.
As this is an ongoing investigation, we are not currently able to comment further.
Estherville Woman Pleads Guilty to Federal Firearm ChargeRead the Press Release
Jodeci Holmes, 21, from Estherville, Iowa, pled guilty September 21, 2023, in federal court in Sioux City to being a prohibited person in possession of a firearm.
At the plea hearing, Holmes admitted that on April 1, 2023, she possessed a 9mm Luger pistol in Estherville, Iowa. She further admitted that, at the time she possessed the gun she was a marijuana user and had previously been convicted of the felony offense of possession with intent to deliver marijuana in 2022. Being a user of controlled substances, and having a felony conviction, each prohibit an individual from possessing a firearm.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Holmes remains in custody of the United States Marshal pending sentencing. Holmes faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Emmet County Sheriff’s Office, Estherville Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3008. Follow us on Twitter @USAO_NDIA.
Eastern Kentucky Doctor and Nurse Convicted of Conspiracy to Illicitly Prescribe Controlled SubstancesRead the Press Release
PIKEVILLE, Ky. – A federal jury sitting in Pikeville convicted a Kentucky physician, Crystal Compton, D.O., 43, and a nurse, Kayla Lambert, 36, on late Thursday of conspiracy to illicitly prescribe controlled substances and related offenses. Compton was also convicted of 44 counts of unlawfully distributing controlled substances.
During the relevant timeframe, Compton was a licensed physician who practiced in several medical clinics in the Pikeville area. Lambert was a nurse who also worked at these medical clinics.
According to evidence presented, Compton and Lambert conspired to unlawfully distribute controlled substances using prescriptions that were not written for a legitimate medical purpose, within the usual course of professional practice. Compton and Lambert issued prescriptions for significant quantities and dosages of opioid painkillers, including oxycodone, methadone, and hydrocodone, sometimes in combination with other controlled substances, such as alprazolam and clonazepam. For example, one individual received prescriptions for 720 methadone 10mg and 180 alprazolam 2mg pills in a single month. Another received prescriptions for 480 methadone 10mg and 300 oxycodone 10mg pills in a single month. Compton also provided multiple prescriptions to Lambert for 180 oxycodone 30mg pills. The evidence also established that Lambert sometimes issued illegitimate controlled substance prescriptions by signing Compton’s name to prescriptions.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the guilty verdict.
Compton and Lambert are scheduled to be sentenced on January 30, 2024. The maximum penalty for the drug trafficking conspiracy and the individual counts of unlawful distribution of controlled substances is 20 years, for Schedule II controlled substances, and five years, for Schedule IV controlled substances. The maximum penalty for conspiring to misuse a DEA registration is 4 years. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence. The defendants also face potential fines, forfeiture of their licenses, a forfeiture money judgment, and a judgment of restitution, as ordered by the Court.
The case was investigated by the DEA.
The United States was represented in the case by Assistant U.S. Attorney Andrew Smith.
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Clovis Man Pleads Guilty to Attempted Online Coercion of a ChildRead the Press Release
FRESNO, Calif. — Paul Joseph Espinosa, 55, of Clovis, pleaded guilty today to attempted online coercion of a child, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, Espinosa noticed an undercover agent’s Instagram profile and sent her a direct message. The undercover agent told Espinosa she was 15 years old, but Espinosa continued to send her direct messages and call her using Instagram audio. Espinosa asked the 15-year-old undercover persona for sexy pictures, asked multiple times to meet up with her to cuddle, to “enjoy each others company at least for a night” and “lay there naked” and “enjoy each other.” Espinosa asked for the 15-year-old persona to send her a picture for his eyes only and sent her three sexually explicit photos of females when asking her for “naughty” pictures.
According to court documents, on June 26, 2021, Espinosa traveled from Clovis to Fresno to meet up with the intended victim because he wanted to engage in various forms of sexual activity with her. When Espinosa arrived, he was placed under arrest.
This case is the product of an investigation by Homeland Security Investigations with assistance from the Fresno Police Department and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Brittany Gunter and Christina McCall are prosecuting the case.
Espinosa is scheduled to be sentenced on Jan. 22. 2024, by U.S. District Judge Jennifer L. Thurston. Espinosa faces a mandatory minimum penalty of 10 years in prison and a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the Court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Clovis Businessman Pleads Guilty to Stealing $1.4 Million in COVID-19 Relief MoneyRead the Press Release
FRESNO, Calif. — Ruben Mireles, 48, of Clovis, pleaded guilty today to stealing $1.4 million in COVID-19 relief money, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mireles owned and operated a farm labor contracting business in Kings County. His business initially went by the name Vista Pacific Labor Solutions Inc. (VPLS) and then changed its name to Calzona Ag Management Inc., doing business as Vista Pacific Farm Management (CAM).
In January 2021, after VPLS changed its name to CAM, Mireles caused CAM to apply for and receive a COVID-19 Paycheck Protection Program (PPP) loan for $1.4 million from the Small Business Administration (SBA). Then, in April 2021, Mireles caused VPLS to apply for and receive another PPP loan for $1.4 million from the SBA based on false information.
In the second loan application, Mireles falsely represented to the SBA that VPLS was a separate company from CAM when, in fact, VPLS and CAM were the same company. Mireles also falsely represented that he had not received any other PPP loans when, in fact, he had previously received CAM’s loan. Finally, Mireles falsely represented that he was not subject to any pending criminal charges when, in fact, he was facing state fraud charges.
Based on Mireles’ representations, VPLS’s loan application was approved and the $1.4 million, to which he was not entitled, was deposited into his bank account.
This case is the product of an investigation by the Federal Bureau of Investigation and the SBA Office of Inspector General. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Mireles is scheduled to be sentenced by Jennifer L. Thurston on Feb. 20, 2024. Mireles faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Cherokee County Resident Sentenced for Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that James Mounce, age 49, of Tahlequah, Oklahoma, was sentenced to 120 months imprisonment for Manslaughter in Indian Country.
The charge arose from an investigation by the Federal Bureau of Investigation, the Cherokee County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Grand River Dam Authority.
On May 19, 2022, Mounce pleaded guilty to Manslaughter in Indian Country. According to court documents, on September 8, 2019, Mounce got into a fight with the victim. Mounce went to the home of a nearby acquaintance, obtained a shotgun, returned to the victim’s location, and shot and killed the victim.
The crime occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearing in Muskogee. Mounce 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 Attorney T. Cameron McEwen represented the United States at sentencing.
Cedar Rapids Woman Sentenced to Federal Prison for Distributing Fentanyl and HeroinRead the Press Release
A woman who distributed fentanyl and heroin was sentenced today to two years in federal prison.
Susan Heins, age 47, from Cedar Rapids, Iowa, received the prison term after an April 6, 2023 guilty plea to one count of distribution of a controlled substance.
Evidence at the plea and sentencing hearings showed that, on October 21, 2020, law enforcement conducted a controlled buy of purported heroin from an individual in Cedar Rapids. Once the location of the controlled buy was arranged, Heins met with the confidential source at the meeting location and distributed fentanyl and heroin.
Heins was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Heins was sentenced to 24 months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Heins is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Adam J. Vander Stoep and was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-92.
Follow us on Twitter @USAO_NDIA.
Cedar Rapids Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
A man who distributed methamphetamine, possessed methamphetamine with the intent to distribute it, and possessed a firearm as a prohibited person, pled guilty on September 21, 2023, in federal court in Cedar Rapids.
Dennis Wayne Hager, age 64, from Cedar Rapids, Iowa, was convicted of two counts of distribution of 50 grams or more of actual (pure) methamphetamine, one count of possession with intent to distribute 50 grams or more of actual (pure) methamphetamine, and one count of possession of a firearm as a felon and drug user.
At the plea hearing, Hager admitted that, on May 25, 2021, and June 1, 2021, he distributed 50 grams or more of actual (pure) methamphetamine to another person. He also admitted that, on or about June 1, 2021, he possessed a firearm as a methamphetamine user and a felon. Hager had four felony convictions related to drugs. Finally, he admitted that, on September 1, 2021, he possessed 50 grams or more of actual (pure) methamphetamine with the intent to distribute it.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Hager remains in custody of the United States Marshal. On each of the drug counts, Hager faces a mandatory minimum sentence of 10 years’ imprisonment and the following maximum penalties: (1) not more than life imprisonment without the possibility of parole; (2) a fine of not more than $10,000,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release of at least 5 years and up to life.
On the gun count, Hager faces a possible maximum sentence of (1) not more than 10 years’ imprisonment without the possibility of parole; (2) a fine of not more than $250,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release of not more than 3 years.
Because there are multiple counts, the sentences could be run consecutively for a maximum sentence of life imprisonment without the possibility of parole, a $30,250,000 fine, $400 in special assessments, and a life term of supervised release.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case is being prosecuted by Special Assistant United States Attorney Devra T. Hake and was investigated by the Cedar Rapids Police Department Narcotics Unit and the Iowa Department of Public Safety Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-40.
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Caribou Man Pleads Guilty for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A Caribou man pleaded guilty today in U.S. District Court in Bangor for his role in a conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
According to court records, between January 2018 and December 2021, James King, 54, along with others, trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties and elsewhere. King knowingly and intentionally joined and participated in the conspiracy.
To date, eight of the 21 defendants in this and related cases have been sentenced and nine of the remaining 13 defendants have pleaded guilty.
King faces 10 years to life in prison and a fine up to $10 million followed by five years to life of supervised release. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the police departments in Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton. U.S. Attorney Darcie McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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California Man Sentenced to 18 Years’ Imprisonment for Methamphetamine and Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Bryce Stanger, age 35, of San Yisidro, California, was sentenced on September 22, 2023, by U.S. District Court Chief Judge Matthew W. Brann, to 18 years’ imprisonment on the charge of conspiracy to distribute methamphetamine and fentanyl.
According to United States Attorney Gerard M. Karam, Bryce Stanger and his wife, Tanya Stanger, age 33, also of San Yisidro, California, previously pleaded guilty and admitted to conspiring to distribute more than 500 grams of methamphetamine and more than 400 grams of fentanyl. The charge stems from an incident on August 25, 2021, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Union County. Bryce and Tanya Stanger were the occupants of the vehicle. A subsequent search of the vehicle resulted in the seizure of approximately thirty pounds of high-quality crystal methamphetamine and more than a kilogram of fentanyl. Further investigation revealed that the defendants were transporting the drugs from California to Hazleton, Pennsylvania, for further distribution.
On September 21, 2023, Tanya Stanger was also sentenced by Chief Judge Brann to 18 years’ imprisonment.
The investigation was conducted by the Pennsylvania State Police and the Federal Bureau of Investigations Safe Street Task Force. Assistant United States Attorney Robert J. O’Hara 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.
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Arrest Made in Recent Anchorage Credit Union, Bank RobberiesRead the Press Release
ANCHORAGE, Alaska – An Anchorage man was arrested last week by the FBI on criminal charges related to recent robberies of a credit union and bank.
According to court documents, Tyler Ching, 34, entered the Global Credit Union on Industry Way in Anchorage on Sept. 19. He approached two customers who were speaking with a bank teller, and he pointed what appeared to be a handgun at them. The defendant placed a bag on the counter and demanded the teller put money inside. The defendant left the credit union with roughly $2,320.
On Sept. 20, Ching allegedly entered the Wells Fargo Bank branch on Jewel Lake Road in Anchorage. He approached a teller who was speaking to a customer and pointed what appeared to be a handgun at the customer and teller. He demanded the teller put money in a bag he brought with him. The defendant fled with around $2,820.
Law enforcement received multiple tips on Sept. 20 stating the suspect resembled Ching. After further investigation, the suspect was identified as Ching, and he was arrested in Cooper Landing on Sept. 22.
Ching is charged with two counts of bank robbery, in violation of 18 U.S.C. §2113(a). If convicted, he faces up to 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska; and Special Agent in Charge Antony Jung of the FBI Anchorage Field Office made the announcement.
The FBI’s Anchorage Field Office, with assistance from the Alaska State Troopers and the Anchorage Police Department, is investigating the case.
Assistant U.S. Attorney Alana Weber is prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Anchorage Man Charged with Arson for Lighting Apartment on FireRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment last week charging an Anchorage man with intentionally lighting an apartment on fire.
According to court documents, Paul Bates, 24, started a fire in an apartment building located on East 12th Avenue in Anchorage on Oct. 30, 2022. Bates lived in the apartment complex at the time and had just engaged in a dispute with a neighbor over the neighbor’s refusal to give Bates a cigarette. After the dispute, the defendant went into his unit, lit three fires and left the scene.
Court documents say the fire spread to multiple units after a few minutes, and residents began evacuating the building, which included a woman with a child on her back and a woman in a wheelchair. The defendant was arrested the same day as the fire.
Bates is charged with one count of arson, in violation of 18 U.S.C. §844(i). The defendant will make his initial court appearance on a later date. If convicted, he faces a mandatory minimum penalty of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Seattle Field Division Special Agent in Charge Jonathan T. McPherson made the announcement.
The ATF Seattle Field Division, with assistance from the Anchorage Police Department and Anchorage Fire Department, is investigating the case.
Assistant U.S. Attorney Karen Vandergaw is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney's Office, District of Alaska U.S. Attorney's Office, District of Alaska###
12 charged in connection with violent motorcycle gang assaultRead the Press Release
HOUSTON – A dozen members of the Homietos Outlaw Motorcycle Gang are now in custody on racketeering and firearms charges related to a violent assault of another motorcycle club in Houston, announced U.S. Attorney Alamdar S. Hamdani.
Law enforcement took Joseph Gomez aka Tequila, 37, Sugarland, into custody late Friday, Sept. 22. He is expected to make his initial appearance before U.S. Magistrate Judge Yvonne Ho today at 2 p.m.
Authorities took Houston residents Joe Barrera aka LJ, 35; Joe Rios aka Jo Daddy, 47, Edgar Hinojosa aka Charro Bean, 38, William Espinoza, 47, Mario Gomez aka Gator, 50, Morgan Cooper aka Coop, 49, and Moises Soriano aka Oso, 41, into custody Sept. 21, after which they appeared in federal court. Law enforcement also arrested Rudolph Lopez aka Yao, 36, Fort Worth.
They all remain in custody pending further criminal proceedings.
Ricardo Quinones aka Scooter, 36, Houston; Raymond Burnett aka Ray Ray, 36, Alvin; Jesse Mulrein aka Fort Worth G, 36, Dallas, were previously in custody and expected to make their appearances in the near future.
“We took action,” said Hamdani. “These alleged gangs are built on a foundation of violence, with members and associates committing acts designed to protect the power and reputation of the organization. Whether on the east side, Sunnyside or within the confines of a motorcycle club, we will pursue anyone who allegedly commits brutal and violent acts to maintain status in a gang.”
“The arrests of 12 alleged Homieto outlaw motorcycle gang members are the result of a multi-year FBI Houston-led interagency investigation and are the first significant indictments against these types of criminal groups in the Houston area,” said Acting Special Agent in Charge David Martinez of the FBI Houston field office. “This criminal organization is accused of crimes that keep victims, community members and rivals in a perpetual state of fear through intimidation and violence. Law enforcement and the public have had enough of the violence, ruthlessness and disregard for law and order that this gang is alleged to have perpetrated.”
A federal grand jury returned the indictment on September 13, 2023, which was unsealed upon the arrests.
The charges allege that on Sept. 19, 2020, members of the Homietos gang and their associates were celebrating their fifth-year anniversary at the Sterling Banquet Hall in Houston. One member had allegedly invited three members of the Tattoo Crue motorcycle club. Shortly after their arrival, several Homietos members violently assaulted the Tattoo Crue club members, according to the indictment.
Two victims allegedly required hospitalization.
The indictment alleges the Homietos Outlaw motorcycle gang is a violent criminal organization with chapters spread throughout the state of Texas and in other locations in the United States. They allegedly recruit members and associates who are predominantly convicted felons, a great number of whom are current or former Houstone Tango Blast gang members. In order to protect the power, reputation and territory of Homietos, members and associates are required to commit acts of violence, threats of violence and intimidation, according to the charges. These members and associates allegedly maintain and enhance their status in Homietos by participating in such violent acts.
All 12 are charged with assault with a dangerous weapon in aid of racketeering and conspiracy to do so and discharging a firearm during a crime of violence. Barrera, Cooper and Burnett are also charged with felon in possession of a firearm while Hinojosa faces allegations of possession of a firearm with an obliterated serial number.
The assault charge carries up to 20 years in prison as a possible penalty, while the conspiracy charges carry a potential three-year-sentence. If convicted of the discharging a firearm count, they also face a minimum of 10 years and up to life which must be served consecutively to any other prison term imposed.
All charges also carry possible fines of up to $250,000.
The FBI and the Texas Department of Criminal Justice - Office of Inspector General conducted the investigation with the assistance of the Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives, sheriff’s offices in Harris and Montgomery Counties, Houston Police Department and U.S. Marshals Service. Assistant U.S. Attorneys John M. Lewis and Brian J. Hrach are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
24 September 2023
Wagner Woman Found Guilty on Multiple Counts of AbuseRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a jury has convicted Tina Sully, age 53, of Wagner, South Dakota, of seven counts of Assault with a Dangerous Weapon, two counts of Felony Child Abuse, and one count of Abusive Sexual Contact, following a four-day jury trial in federal district court in Sioux Falls, South Dakota. The verdict was returned on September 15, 2023.
Sully was indicted on these charges by a federal grand jury in January of 2022. The charges carry a mandatory minimum of 10 years and possible maximum penalty of life in federal prison and/or a $250,000 fine, five years of supervised release, and a $1,000 special assessment to the Federal Crime Victims Fund.
Sully was a foster and adopted mother to several children. The jury convicted her of unlawfully assaulting and cruelly punishing three of them, including beating them with belts and hangers and withholding food from them for days, between the years of 1993 and 2021. Sully was also convicted of sexually abusing one of the children by grabbing the juvenile male’s genitals.
This case was investigated by the FBI, Yankton Sioux Law Enforcement, and the Charles Mix County Sheriff’s Office. Assistant U.S. Attorney Ann M. Hoffman and Special Assistant U.S. Attorney Elizabeth Ebert, who also serves as a prosecutor with the South Dakota Attorney General’s Office, prosecuted the case.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was released pending sentencing.
Sioux Falls Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Jaden Rae Lalley-Mestas, age 23, was indicted on September 12, 2023. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 15, 2023, and pleaded not guilty to the Indictment.
The mandatory minimum penalty upon conviction is 10 years and a maximum of life in federal prison and/or a $10,000,000 fine, five years minimum of supervised release, up to life, and $100 to the Federal Crime Victims Fund.
The Indictment alleges that from an unknown date through September 12, 2023, Lalley-Mestas conspired with others to distribute 500 grams or more of methamphetamine, a controlled substance.
The charge is merely an accusation and Lalley-Mestas is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Drug Enforcement Administration and the FBI. Assistant U.S. Attorney Mark Hodges is prosecuting the case.
Lalley-Mestas was detained in U.S. Marshals Service custody pending trial. A trial date has not been set.
Rapid City Man Sentenced for Illegal Possession of FirearmsRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Possession of Firearm by a Prohibited Person, Use of a Firearm During and in Relation to a Drug Trafficking Crime, and two counts of False Statement During Purchase of a Firearm. The sentencing took place on September 1, 2023.
Harold Salway, 24, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a $400 special assessment to the Federal Crime Victims Fund.
Salway was indicted for Possession of a Firearm by a Prohibited Person, Conspiracy to Distribute a Controlled Substance, Use of a Firearm During and in Relation to a Crime of Violence, and False Statement During Purchase of a Firearm by a federal grand jury in September of 2022. He pleaded guilty on June 16, 2023.
In June of 2022, at Rapid City, Salway, being an unlawful user of a controlled substance, knowingly possessed multiple firearms which were found after Salway came into contact with law enforcement. Salway also made false statements about his drug usage while purchasing firearms between January of 2021 and March of 2022. Between January of 2021 and March of 2022, Salway purchased at least 43 firearms, which he then traded for drugs or sold or provided to them to others who were prohibited from possessing them.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Salway was immediately remanded to the custody of the U.S. Marshals Service.
Little Eagle Man Sentenced for Habitual Domestic Violence and Sexual AbuseRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that U.S. District Judge Charles B. Kornmann sentenced a Little Eagle, South Dakota, man convicted of Sexual Abuse by Force and Habitual Domestic Violence. The sentencing took place on September 19, 2023.
Anthony Bobtail Bear, age 43, was sentenced to 17 years in federal prison, followed by five years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Bobtail Bear was indicted by a federal grand jury in February of 2022. A Superseding Information was filed, and the defendant changed his plea to guilty on June 26, 2023.
The defendant was convicted of physically and sexually abusing the mother of his child at a home in Little Eagle. The victim sustained bruising to her head, suffered a loss of consciousness during the abuse, and ultimately required surgery to repair the injuries she sustained from the abuse. The defendant and victim were in a tumultuous on again/off again relationship. This is the defendant’s fifth conviction for assaulting the victim, and sixth conviction for domestic violence against his dating partners.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Bureau of Indian Affairs – Office of Justice Services, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Bobtail Bear was immediately remanded to the custody of the U.S. Marshals Service.
22 September 2023
Virginia Medical Equipment Provider Ordered to Pay $12 M in Medicare Fraud Scheme as Civil PenaltyRead the Press Release
ALEXANDRIA, Va. – AZ Diabetic Supply, Inc. (AZD), a durable medical equipment (DME) provider located in Vienna, was ordered to pay $12 million for its submission of nearly 1,000 false and fraudulent claims to Medicare for reimbursement.
AZD is owned and operated by Hisham Zaghal, a resident of Vienna. In its complaint filed in district court, the United States alleged that from January 2016 through December 2021, Medicare paid AZD over $600,000 in reimbursement claims for medical braces provided to Medicare-enrolled patients related to DME prescriptions that AZD illegally purchased from marketing companies. AZD, through Zaghal, paid a fee for each prescription that it purchased. AZD used the DME prescriptions and personal and medical data provided by the marketing companies to submit 923 fraudulent Medicare claims for reimbursement. The District Court for the Eastern District of Virginia held AZD liable for its actions and entered a judgment against the company for damages and penalties under the False Claims Act for $12,036,554.48.
Zaghal reached a separate settlement agreement with the United States for his alleged role in the scheme. As part of that agreement, Zaghal agreed to pay $10,000 and accept a three-year voluntary exclusion from federally funded healthcare programs. He also agreed to forgo $57,690.12 funds in escrow held by the Department of Health & Human Services (HHS) from the nationwide suspension of payments to AZD and Zaghal. The claims against Zaghal resolved by the settlement are allegations only and there has been no determination of lability.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the U.S. Department of Health & Human Services Office of Inspector General.
The matter was handled by Assistant U.S. Attorney Kristin Starr and former Assistant U.S. Attorney Krista Anderson.
A copy of this press release may be found on the website at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for No. 1:22-cv-965.
United States, Mexico, and Canada Launch Joint Initiative to Detect Collusive Schemes Seeking to Exploit the 2026 FIFA World CupRead the Press Release
The Justice Department announced today, alongside its partners from Mexico’s Federal Economic Competition Commission (COFECE) and Canada’s Competition Bureau, the launch of a joint initiative to deter, detect and prosecute collusive schemes related to the provision of goods and services in connection with the 2026 FIFA World Cup. The 2026 FIFA World Cup will be jointly hosted by the three nations, with events scheduled to occur across 11 locations in the United States, three cities in Mexico, and two cities in Canada. Through this initiative, the enforcement agencies will collaborate on outreach to the public and business community about anti-competitive conduct, as well as on investigations, using intelligence sharing and existing international cooperation tools.
“This historic event will bring billions of dollars in economic activity to cities across the United States, Mexico, and Canada,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will be vigilant in detecting anticompetitive conduct by any businesses and individuals that exploit the economic opportunities created by the games. We look forward to working with our international partners on this effort.”
“As an authority, we have set out to make the benefits of competition tangible for the population,” said Chairwoman Andrea Marván of COFECE. “For Mexico, competition in soccer means passion and enjoyment. Just as in the World Cup, for competition to happen in the economic markets, a level playing field for all those interested in offering their goods and services should be guaranteed. Today we announce a historic collaboration to promote the inclusive benefits of economic and sports competition. In this regard, COFECE will be as vigilant as ever to guarantee that the economic benefits derived from this event are not affected by anti-competitive conducts that could harm both local and international fans. We will work alongside the U.S. and Canadian antitrust agencies to ensure that, no matter where, all markets are working in a competitive and efficient way during this historic event.”
“Strong cooperation among law enforcers and partner organizations is key to ensuring that illegal conduct is investigated, and that appropriate action is taken,” said Commissioner Matthew Boswell of the Competition Bureau of Canada. “The Competition Bureau will do everything in its power to pursue those who seek to unjustly profit from the World Cup.”
The World Cup is expected to generate benefits across a wide range of sectors in the economy, including the construction, entertainment and tourism industries in the following host sites: Atlanta, Boston, Dallas, Houston, Kansas City, Missouri, Los Angeles, New York/New Jersey, Miami, Philadelphia, the San Francisco Bay Area and Seattle. Collaborating with our international partners will allow us to deter anti-competitive conduct impacting the games in our three nations.
Anyone with information regarding market allocation, price fixing, bid rigging or other anticompetitive conduct should contact the Procurement Collusion Strike Force at www.justice.gov/procurement-collusion-strike-force or the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258.
The Justice Department is committed to working closely with the public, the business community and our international partners to enforce the antitrust laws for the protection of the American people.
U.S. Senator Robert Menendez, His Wife, and Three New Jersey Businessmen Charged with Bribery OffensesRead the Press Release
Robert Menendez Allegedly Agreed to Use His Official Position to Benefit Wael Hana, Jose Uribe, Fred Daibes, and the Government of Egypt in Exchange for Hundreds of Thousands of Dollars of Bribes to Menendez and His Wife Nadine Menendez, Which Included Gold Bars, Cash, and a Luxury Convertible
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that an Indictment was unsealed this morning charging U.S. Senator ROBERT MENENDEZ, his wife NADINE MENENDEZ, a/k/a “Nadine Arslanian,” and three New Jersey businessmen, WAEL HANA, a/k/a “Will Hana,” JOSE URIBE, and FRED DAIBES, with participating in a years-long bribery scheme. The Indictment alleges that MENENDEZ and his wife, NADINE MENENDEZ, accepted hundreds of thousands of dollars of bribes from HANA, URIBE, and DAIBES in exchange for MENENDEZ’s agreement to use his official position to protect and enrich them and to benefit the Government of Egypt. Among other things, MENENDEZ agreed and sought to pressure a senior official at the U.S. Department of Agriculture in an effort to protect a business monopoly granted to HANA by Egypt, disrupt a criminal case undertaken by the New Jersey Attorney General’s Office related to associates of URIBE, and disrupt a federal criminal prosecution brought by the U.S. Attorney’s Office for the District of New Jersey against DAIBES. MENENDEZ, NADINE MENENDEZ, HANA, URIBE, and DAIBES are expected to appear in federal court in Manhattan on Wednesday, September 27, 2023, at 10:30 a.m. The case is assigned to U.S. District Judge Sidney H. Stein.
U.S. Attorney Damian Williams said: “As the grand jury charged, between 2018 and 2022, Senator Menendez and his wife engaged in a corrupt relationship with Wael Hana, Jose Uribe, and Fred Daibes – three New Jersey businessmen who collectively paid hundreds of thousands of dollars of bribes, including cash, gold, a Mercedes Benz, and other things of value – in exchange for Senator Menendez agreeing to use his power and influence to protect and enrich those businessmen and to benefit the Government of Egypt. My Office is firmly committed to rooting out corruption, without fear or favor, and without any regard to partisan politics. We will continue to do so.”
FBI Assistant Director in Charge James Smith said: “The FBI has made investigating public corruption a top priority since our founding — nothing has changed. The alleged conduct in this conspiracy damages the public’s faith in our system of government and brings undue scorn to the honest and dedicated public servants who carry out their duties on a daily basis. To those inclined to use the status of their public office for personal benefit, or those willing to provide bribes in an attempt to gain influence from a public official, the FBI will ensure that you face the consequences in the criminal justice system for your underhanded dealings.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
ROBERT MENENDEZ is the senior U.S. Senator from New Jersey and currently the Chairman of the Senate Foreign Relations Committee (“SFRC”). NADINE MENENDEZ began dating MENENDEZ in February 2018, they became engaged in October 2019, and they married in October 2020. Shortly after they began dating in 2018, NADINE MENENDEZ introduced MENENDEZ to her long-time friend WAEL HANA, who is originally from Egypt, lived in New Jersey, and maintained close connections with Egyptian officials. HANA was also business associates with FRED DAIBES, a New Jersey real estate developer and long-time donor to MENENDEZ, and JOSE URIBE, who worked in the New Jersey insurance and trucking business.
Between 2018 and 2022, MENENDEZ and NADINE MENENDEZ agreed to and did accept hundreds of thousands of dollars’ worth of bribes from HANA, DAIBES, and URIBE. These bribes included gold, cash, a luxury convertible, payments toward NADINE MENENDEZ’s home mortgage, compensation for a low-or-no-show job for NADINE MENENDEZ, home furnishings, and other things of value. In June 2022, the FBI executed a search warrant at the New Jersey home of MENENDEZ and NADINE MENENDEZ. During that search, the FBI found many of the fruits of this bribery scheme, including cash, gold, the luxury convertible, and home furnishings. Over $480,000 in cash — much of it stuffed into envelopes and hidden in clothing, closets, and a safe — was discovered in the home, as well as over $70,000 in cash in NADINE MENENDEZ’s safe deposit box, which was also searched pursuant to a separate search warrant. Some of the envelopes contained the fingerprints and/or DNA of DAIBES or his driver. Other of the envelopes were found inside jackets bearing MENENDEZ’s name and hanging in his closet, as depicted below.
During this same search, agents also found home furnishings provided by HANA and DAIBES, the luxury vehicle paid for by URIBE parked in the garage, as well as over one hundred thousand dollars’ worth of gold bars in the home, which were provided by either HANA or DAIBES. Two of the gold bars DAIBES provided are depicted in the photographs below.
In exchange for these and other things of value, MENENDEZ agreed to use his power and influence as a Senator to seek to protect HANA, URIBE, and DAIBES’s interests and to benefit the Government of Egypt. Through this corrupt relationship, MENENDEZ agreed to take a series of official acts and breaches of his official duty. First, MENENDEZ took actions to benefit the Government of Egypt and HANA, including by improperly pressuring an official at the U.S. Department of Agriculture (“USDA”) to seek to protect a business monopoly granted to HANA by Egypt. Second, MENENDEZ took actions seeking to disrupt a criminal investigation undertaken by the Office of the New Jersey Attorney General (“NJAG”) related to URIBE and his associates. Third, MENENDEZ recommended that the President nominate a U.S. Attorney who MENENDEZ believed he could influence with respect to DAIBES and sought to disrupt a federal criminal prosecution undertaken by the U.S. Attorney’s Office for the District of New Jersey (“USAO-DNJ”) of DAIBES.
Promised Actions to Benefit Egypt and Pressure the USDA
Shortly after she began dating MENENDEZ in 2018, NADINE MENENDEZ worked with HANA to introduce Egyptian intelligence and military officials to MENENDEZ. Those introductions helped establish a corrupt agreement in which HANA, with assistance from DAIBES and URIBE, provided bribes to MENENDEZ and NADINE MENENDEZ in exchange for MENENDEZ’s actions to benefit Egypt and HANA, among others.
As part of the scheme, MENENDEZ provided sensitive, non-public U.S. government information to Egyptian officials and otherwise took steps to secretly aid the Government of Egypt. For example, in or about May 2018, MENENDEZ provided Egyptian officials with non-public information regarding the number and nationality of persons serving at the U.S. Embassy in Cairo, Egypt. Although this information was not classified, it was deemed highly sensitive because it could pose significant operational security concerns if disclosed to a foreign government or made public. Without telling his professional staff or the State Department that he was doing so, on or about May 7, 2018, MENENDEZ texted that sensitive, non-public embassy information to his then-girlfriend NADINE MENENDEZ, who forwarded the message to HANA, who forwarded it to an Egyptian government official. Later that same month, MENENDEZ ghost-wrote a letter on behalf of Egypt to other U.S. Senators advocating for them to release a hold on $300 million in aid to Egypt. MENENDEZ sent this ghost-written letter to NADINE MENENDEZ, who forwarded it to HANA, who sent it to Egyptian officials.
At various times between 2018 and 2022, MENENDEZ also conveyed to Egyptian officials, through NADINE MENENDEZ, HANA, and/or DAIBES, that he would approve or remove holds on foreign military financing and sales of military equipment to Egypt in connection with his leadership role on the SFRC. For example, in or about July 2018, following meetings between MENENDEZ and Egyptian officials, which were arranged and attended by NADINE MENENDEZ and HANA, MENENDEZ texted NADINE MENENDEZ that she should tell HANA that MENENDEZ was going to sign off on a multimillion-dollar weapons sale to Egypt. NADINE MENENDEZ forwarded this text to HANA, who forwarded it to two Egyptian officials, one of whom replied with a “thumbs up” emoji. MENENDEZ made similar communications over the ensuing years. For example, in January 2022, MENENDEZ sent NADINE MENENDEZ a link to a news article reporting on two pending foreign military sales to Egypt totaling approximately $2.5 billion. NADINE MENENDEZ forwarded this link to HANA, writing, “Bob had to sign off on this.”
In exchange for MENENDEZ’s agreement to take these and other actions, HANA promised NADINE MENENDEZ payments, including from IS EG Halal Certified, Inc. (“IS EG Halal”), a New Jersey company that HANA operated with financial support and backing from DAIBES. However, IS EG Halal had little to no revenue until the spring of 2019, when the Government of Egypt granted IS EG Halal a monopoly on the certification of U.S. food exports to Egypt as compliant with halal standards, despite the fact that neither HANA nor his company had experience with halal certification. The monopoly generated revenue for HANA, through which he paid NADINE MENENDEZ as promised.
Because the monopoly resulted in increased costs for U.S. meat suppliers, in or about April and May 2019, the USDA contacted the Government of Egypt and sought reconsideration of its grant of monopoly rights to IS EG Halal. After being briefed on the USDA’s objections to IS EG Halal’s monopoly by HANA and NADINE MENENDEZ, on May 23, 2019, MENENDEZ called a high-level USDA official (“Official-1”) and insisted that the USDA stop opposing IS EG Halal’s status as sole halal certifier. When Official-1 attempted to explain why the monopoly was detrimental to U.S. interests, MENENDEZ reiterated his demand that the USDA stop interfering with IS EG Halal’s monopoly. Official-1 did not accede to MENENDEZ’s demand, but IS EG Halal nevertheless kept its monopoly.
After financially benefitting from IS EG Halal’s monopoly, HANA, at times with the assistance of DAIBES and URIBE, provided payments and other things of value in furtherance of the scheme. For example, in or about July 2019, after the mortgage company for the residence of NADINE MENENDEZ initiated foreclosure proceedings, HANA caused IS EG Halal to pay approximately $23,000 to bring the mortgage current. HANA did so after a series of discussions with NADINE MENENDEZ, as well as URIBE and DAIBES, about various options for bringing the mortgage current. Later in 2019, HANA and DAIBES caused IS EG Halal to issue three $10,000 checks to NADINE MENENDEZ for a low-or-no-show job. As the scheme continued, including through the additional actions described below, MENENDEZ and NADINE MENENDEZ received additional bribes, including gold and cash.
Promised Actions Seeking to Disrupt the NJAG Criminal Case
Also in 2019, HANA and URIBE offered to help buy a new Mercedes-Benz C-300 convertible worth more than $60,000 for MENENDEZ and NADINE MENENDEZ. In exchange, MENENDEZ agreed and sought to interfere in the NJAG’s criminal insurance fraud prosecution of an associate of URIBE and a related investigation involving an employee of URIBE. On multiple occasions in 2019, URIBE, HANA, and/or NADINE MENENDEZ briefed MENENDEZ regarding the NJAG’s insurance fraud prosecution and investigation. Following those briefings, and in exchange for the promise of the luxury convertible, MENENDEZ contacted a senior state prosecutor at the NJAG’s Office who supervised the prosecution and investigation (“Official-2”) at least twice. During those communications, MENENDEZ attempted to pressure Official-2 to resolve the prosecution more favorably to the defendant. Official-2 considered MENENDEZ’s actions inappropriate and did not agree to intervene. Nevertheless, the prosecution was ultimately resolved with a plea allowing for no jail time and the investigation never resulted in any charges against URIBE’s employee.
In exchange for MENENDEZ’s actions, URIBE provided NADINE MENENDEZ with $15,000 cash for the down payment on the luxury convertible in April 2019. After the purchase was complete, NADINE MENENDEZ messaged MENENDEZ, “Congratulations mon amour de la vie, we are the proud owners of a 2019 Mercedes.❤️” and texted MENENDEZ the below photograph of the convertible:
Thereafter, URIBE made monthly payments to Mercedes-Benz for the convertible between 2019 and June 2022. URIBE only stopped making those monthly payments after the FBI approached MENENDEZ, NADINE MENENDEZ, and URIBE in connection with this investigation.
Promised Actions Seeking to Disrupt the USAO-DNJ Criminal Case
In October 2018, the USAO-DNJ charged DAIBES with federal criminal charges for obtaining loans under false pretenses from a New Jersey-based bank he founded. Between December 2020 and 2022, MENENDEZ agreed to attempt to influence the pending federal prosecution of DAIBES in exchange for cash, furniture, and gold bars that DAIBES provided to MENENDEZ and NADINE MENDENDEZ. In furtherance of this aspect of the scheme, MENENDEZ recommended that the President nominate an individual (“Official-3”) as U.S. Attorney for the District of New Jersey who MENENDEZ believed he could influence with respect to DAIBES’s case. MENENDEZ also had direct and indirect contact with both Official-3 and another high-ranking official at the USAO-DNJ (“Official-4”) in an attempt to influence the outcome of DAIBES’s case.
Official-3 and Official-4 did not pass on to the USAO-DNJ prosecution team handling the DAIBES prosecution the fact that MENENDEZ had contacted them, and they did not treat the case any differently as a result of MENENDEZ’s actions. DAIBES’s case was ultimately resolved with a plea agreement that provided for a probationary sentence. In exchange for MENENDEZ’s participation in the bribery scheme, DAIBES provided MENENDEZ and NADINE MENENDEZ with multiple things of value, including the two one-kilogram gold bars pictured below.
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ROBERT MENENDEZ, 69, of Englewood Cliffs, New Jersey, is charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; one count of conspiracy to commit honest services fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit extortion under color of official right, which carries a maximum sentence of 20 years in prison.
NADINE MENENDEZ, 56, of Englewood Cliffs, New Jersey, is charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; one count of conspiracy to commit honest services fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit extortion under color of official right, which carries a maximum sentence of 20 years in prison.
WAEL HANA, 40, formerly of Edgewater, New Jersey, and originally of Egypt, JOSE URIBE, 56, of Clifton, New Jersey, and FRED DAIBES, 66, of Edgewater, New Jersey, are all charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit honest services fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI. Mr. Williams thanked the Internal Revenue Service-Criminal Investigation for its invaluable assistance on the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, Paul Monteleoni, Lara Pomerantz, and Daniel C. Richenthal are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This investigation remains ongoing. If you have information regarding the charges or defendants in the Indictment, please contact the FBI at 1-800-CALL-FBI and reference this case.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney’s Office plans civil rights and social services expoRead the Press Release
WHEELING, WEST VIRGINIA – The United States Attorney’s Office will partner with West Virginia Northern Community College to host a civil rights and social services expo next week.
The event will take place on September 27 from 10:30 a.m. until 1:00 p.m. at the B&O building on Market Street in Wheeling. Several local agencies will participate, offering informational booths on topics to include fair housing, disability rights, and childcare.
Paws 4 People, a non-profit service animal organization, will offer service dog demonstrations throughout the day.
Other participating organizations include the Seeing Hand Association, the United Way, Harmony House, CASA, Salvation Army, Legal Aid, Disability Rights of WV, Wheeling Health Right, the WV Child Advocacy Network, the Wheeling Human Rights Commission, the Soup Kitchen of Greater Wheeling, Bethlehem Apostolic Temple, the Child Care Resource Center, the Brooke Hancock Family Resource Network, and the Sexual Assault Help Center.
The event is free and open to the public.
This event is one of several outreach efforts within the Northern District of West Virginia.
To learn more about the District’s civil rights work, or to report a civil rights violation, go to https://www.justice.gov/usao-ndwv/civil-rights-program.
U.S. Attorney’s Office and Justice Department’s Civil Rights Division to Host Forum in Newark to Increase Awareness of Civil Rights Protections for Religious Land UseRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division will hold an outreach event in Newark to commemorate the 23rd anniversary of the signing of the Religious Land Use and Institutionalized Persons Act (RLUIPA), a federal law that protects persons and religious institutions from discriminatory land use regulations.
The RLUIPA outreach event will take place at Seton Hall Law School in Newark on Oct. 30, 2023, and will include remarks from U.S. Attorney Sellinger, Civil Rights Division officials, religious leaders in New Jersey whose organizations have benefited from RLUIPA’s protections, and attorneys who have experience litigating RLUIPA cases. For more information about this event and others the Civil Rights Division plans to hold around the country, please see the department’s RLUIPA’s website. All events will be open to the public.
U.S. Attorney Philip R. Sellinger“RLUIPA provides important protections for religious groups throughout New Jersey. Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. We look forward to increasing awareness of RLUIPA and co-hosting this important event at Seton Hall Law School.”
“RLUIPA provides important protections for religious groups throughout New Jersey,” U.S. Attorney Sellinger said. “Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. We look forward to increasing awareness of RLUIPA and co-hosting this important event at Seton Hall Law School.”
“Over the last 23 years, the Religious Land Use and Institutionalized Persons Act has helped to combat religious discrimination by protecting the civil rights of faith communities across the country,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “In light of continued anti-Semitism, Islamophobia and other forms of religious discrimination, the Justice Department stands ready to use federal civil rights law to ensure that communities can use their property for worship and to freely engage in religious exercise. The anniversary of RLUIPA provides an opportunity to underscore our commitment to protecting religious rights and ensuring that people are able to freely use land to worship and practice their faith.”
RLUIPA was passed unanimously by Congress and signed into law on September 22, 2000, and contains provisions covering religious land use and religious exercise by people who are incarcerated. Since RLUIPA’s passage, the Department has opened over 150 formal investigations and filed 28 lawsuits and 34 friend of the court briefs related to RLUIPA’s land use provisions, including several in the District of New Jersey. Since 2016, the U.S. Attorney’s Office has filed 4 lawsuits and 2 friend of court brief’s related to RLUIPA’s land use provisions. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to religious discrimination in land use or zoning decisions may file a complaint with the U.S Attorney’s Office at https://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Individuals may also contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291 or submit a complaint through the complaint portal on the Place to Worship Initiative website.
Two Tax Shelter Promoters Found Guilty in Billion-Dollar Syndicated Conservation Easement Tax SchemeRead the Press Release
A federal jury sitting in Atlanta convicted Jack Fisher and James Sinnott today of conspiracy to defraud the United States, conspiracy to commit wire fraud, aiding and assisting the filing of false tax returns and subscribing to false tax returns. Fisher was also convicted of money laundering.
The convictions stem from Fisher and Sinnott’s fraudulent tax shelter scheme involving syndicated conservation easements dating back nearly two decades. A co-defendant, Clay Weibel, was acquitted. U.S. District Court Chief Judge Timothy Batten for the Northern District of Georgia remanded Fisher and Sinnott into custody pending their sentencing.
According to court documents and evidence presented at trial, Fisher and Sinnott designed, marketed and sold to high-income clients abusive syndicated conservation easement tax shelters based on fraudulently inflated charitable contribution tax deductions, promising them deductions 4.5 times the amount the taxpayer clients paid.
The evidence proved that Fisher and Sinnott used the funds raised from their taxpayer clients to buy land and property holding companies and then had the tax shelters cause the companies to donate the land or a conservation easement over the land – often within days or weeks of purchase. To reach the inflated fair market value of the donations, Fisher and Sinnott primarily used appraisals of the conservation easements and fee simple land donations at valuations often more than 10 times higher than what Fisher and Sinnott actually paid to acquire the property.
The evidence further showed that Fisher and Sinnott backdated or instructed others to backdate false documents to present to the IRS, including subscription agreements, payment documents, engagement letters and other records. Fisher’s accountant, who testified at trial and previously pleaded guilty for his role in the scheme, prepared tax returns claiming charitable contribution tax deductions in the fraudulently inflated amounts reported in the false appraisals, resulting in fraudulent tax deductions flowing to the clients who purchased units in the abusive and illegal tax shelters. The evidence demonstrated that Fisher, Sinnott and others received more than $41 million in payments that were backdated or late for false and inflated tax deductions.
In total, the defendants sold over $1.3 billion in fraudulent tax deductions through this scheme.
The government proved that Fisher and Sinnott made millions from their scheme. Fisher used the illegal proceeds to purchase a Mercedes Benz automobile, a private jet and an RV and trailer. Fisher also used proceeds of the scheme to purchase homes in the United States and on the Caribbean island of Bonaire, which the jury found to be forfeitable.
Fisher and Sinnott face a maximum penalty ranging between three and twenty years in prison for each count of conviction. The government is also seeking the forfeiture of monetary proceeds and real properties purchased by Fisher and Sinnott in connection with their fraud scheme. 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, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia and IRS-Criminal Investigation Chief Jim Lee made the announcement, also thanking U.S. Attorney Dena J. King for the Western District of North Carolina for her office’s assistance.
IRS-Criminal Investigation and the U.S. Postal Inspection Service investigated the case.
Trial Attorneys Richard M. Rolwing, Parker Tobin, Jessica Kraft, Grace Albinson and Nicholas J. Schilling Jr. of the Tax Division and Assistant U.S. Attorney Christopher Huber, who also serves as Deputy Chief of the Complex Frauds Section, for the Northern District of Georgia are prosecuting the case.
Two Arrested for Allegedly Delivering Cocaine Using Rental Cars and Rideshare ServicesRead the Press Release
WASHINGTON - A criminal complaint, unsealed today, charges Raul Rivero, a/k/a Guillermo Raul DeRivero, 54, of Arlington, Virginia, and Dusan Dimic, 40, of Reston, Virginia, with possession with intent to distribute cocaine and conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge Jarod Forget, of the Drug Enforcement Administration’s (DEA) Washington Division, and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
When DEA Agents arrested Rivero and Dimic last night, they also confiscated a total of 573 grams of cocaine, 90 grams of methamphetamine pills, and more than $4,400 in cash. Search warrants that were subsequently executed at residences affiliated with the defendants resulted in the seizure of approximately 3 kilograms of cocaine and more than $100,000 cash.
According to court documents, between August 18, 2022, and August 10, 2023, through undercover controlled purchases, DEA agents made 14 controlled buys totaling approximately 367 grams of cocaine from Rivero in Washington, D.C. The drugs were allegedly delivered as part of a delivery service in the Northwest quadrant of Washington, D.C., using various cars, including rental cars and rideshare services.
If convicted, the defendants face a maximum statutory sentence of 20 years, each, for conspiracy and distribution of cocaine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. A defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the DEA’s Washington Division and the MPD. It is being prosecuted by Special Assistant U.S. Attorney Sarah J. Rasalam and Assistant U.S. Attorneys Christopher Marin and David Henek, of the Violence Reduction and Trafficking Offenses section of the U.S. Attorney’s Office for the District of Columbia.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Individuals Plead Guilty to Straw Purchasing Conspiracy to Buy Illegal GunsRead the Press Release
ALEXANDRIA, Va. – Three individuals pleaded guilty yesterday to engaging in a straw purchasing conspiracy.
According to court documents, from at least March 19, 2020, through May 5, 2021, Stanley Davis, 24, of Petersburg, Mantriel Reaves, 25, of Chandler, Arizona, and Jasiri Wynn, 23, of Mount Holly, New Jersey, conspired to make false statements to federal firearms licensees in Virginia and elsewhere in order to obtain illegal firearms. During the conspiracy, Davis acted as a straw purchaser of firearms in Virginia on behalf of Reaves and Wynn.
Davis purchased at least eight firearms for Reaves and Wynn, who directed Davis as to which firearms to purchase. Several of these firearms were later recovered from individuals alleged to be involved in criminal activity. For example, one firearm was recovered from a juvenile in Baltimore, a second firearm was recovered from an individual in New Jersey who was prohibited from possessing firearms, and a third firearm was recovered by law enforcement during the execution of a search warrant in Frostburg, Maryland, as part of an armed robbery investigation.
Davis and Reaves are scheduled to be sentenced on January 19, 2024. Wynn is scheduled to be sentenced on January 26, 2024 They face a maximum penalty of 5 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after Senior U.S. District Judge T. S. Ellis III accepted the plea.
Assistant U.S. Attorneys Natasha Smalky and Lauren Halper are 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-111.
Three Defendants Arrested on Federal Complaint Alleging They Kidnapped Inland Empire Teenager Held for Ransom in Santa MariaRead the Press Release
RIVERSIDE, California – Three men were arrested today and have been charged in a federal criminal complaint alleging they kidnapped a 17-year-old boy in San Bernardino County and held him for ransom in Santa Maria.
Fidel Jesús Patino Jaimes, 22, Jair Tomás Ramos Domínguez, 26, of Santa Maria, and Ezequiel Felix López, 27, all of whom told law enforcement they were from Santa Maria, were arrested Friday morning and were charged this evening with kidnapping, a felony that carries a statutory maximum sentence of life imprisonment.
The defendants are expected to make their initial appearances on Monday afternoon in United States District Court in Riverside.
“Few things can be as terrorizing to a parent as having your child kidnapped and held for ransom under threat of physical harm,” said United States Attorney Martin Estrada. “Together with the FBI and our local law enforcement partners, we have acted swiftly to rescue the victim and bring the abductors to justice. I commend the agents and officers for their heroic efforts to free the victim and prevent a devastating tragedy from occurring.”
According to an affidavit filed with the complaint, on the morning of September 18, the defendants allegedly caused a traffic accident in which the victim – a 17-year-old boy – crashed into their silver-colored Jeep Grand Cherokee. After the collision, the victim exited his vehicle. At that point, the defendants allegedly grabbed the victim and forced him into their vehicle.
On the afternoon of September 18, the victim’s mother received a telephone call from a Mexican phone number. The caller demanded the delivery of $500,000 to an unspecified location in Nogales, Mexico for the victim, and said that the abduction was the fault of the victim’s father.
Shortly thereafter, a different Mexican telephone number was used to send a WhatsApp video to the victim’s mother’s cellphone. The video showed the victim in the backseat of the Jeep Grand Cherokee and reading from a script, saying that the abduction was his father’s fault for an incident that occurred in New York, and saying you know what you stole.
For several days afterward, the victim’s mother received multiple phone calls from different Mexican telephone numbers in which the speaker demanded payment and threatened to cut off body parts of the victim if payment wasn’t made. The ransom demand, which went unpaid, was reduced to $100,000.
Law enforcement ultimately tracked the defendants down to a motel in Santa Maria, in part by identifying the vehicle used during the kidnapping in a Facebook Marketplace posting and by reviewing Ring door camera footage of the kidnapping.
During the execution of a search warrant at one of the motel’s rooms this morning, law enforcement found the three defendants – one of whom tossed a firearm onto the floor – and the victim, who was lying on the floor in a corner of the room, according to the affidavit.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and the San Bernardino County Sheriff’s Department are investigating this matter. The Santa Maria Police Department provided substantial assistance.
Assistant United States Attorney Sean D. Peterson of the Riverside Branch Office is prosecuting this case.
Tennessee Man Sentenced to 18 Months for Stolen Sports Memorabilia SchemeRead the Press Release
FRANKFORT, Ky. — A Friendsville, Tenn., man, Thomas Z. Kasemeyer, 34, was sentenced to 18 months in federal prison on Thursday, by U.S. District Judge Gregory Van Tatenhove, for conspiring to transport stolen goods across state lines. Following his term of incarceration, he was also ordered to serve three years of supervised release.
According to his guilty plea agreement, in 2021 and early 2022, Kasemeyer, along with his co-defendant, Coy Lee Best, committed a series of burglaries in Tennessee, Georgia, and Kentucky, where they stole valuable sports cards and similar merchandise from various businesses. After these burglaries, Kasemeyer and Best admitted that they would then travel, often across state lines, to other sports cards stores, to sell what they had stolen.
In addition to his prison sentence, Kasemeyer was also ordered to pay $198,775 in restitution, representing the value of the merchandise stolen during the conspiracy. For his role in the conspiracy, Coy Best was sentenced to 24 months in prison, in May 2023.
Under federal law, Kasemeyer and Best must serve 85 percent of their prison sentences. In addition to the $198,775 ordered for restitution, the Court also directed Kasemeyer to pay a money judgement in the amount of $30,000, reflecting his personal proceeds from the stolen merchandise.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Brian Jones, Acting Special Agent in Charge, FBI, Louisville Field Office; Chief Lawrence Weathers, Lexington Police Department; Chief Paul Noel, Knoxville Police Department; Chief Celeste Murphy; Chattanooga Police Department; Chief Frank McCann, Cartersville Police Department; Sheriff Robert Bryan, Wilson County Sheriff’s Office; and Sheriff David Charles, Montgomery County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the FBI, Lexington Police Department, Knoxville Police Department, Chattanooga Police Department, Cartersville Police Department, Wilson County Sheriff’s Office, and the Montgomery County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Will Moynahan.
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Sisters Facing Federal Charges for Fraudulently Obtaining Covid-19 Cares Act Paycheck Protection Program and Economic Injury Disaster LoansRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment of Dinara Sosa, age 35, of Reisterstown, Maryland, and Elza Lipartiya, age 27, of Landsdale, Pennsylvania, for wire fraud, and conspiracy to commit wire fraud relating to the submission of fraudulent claims for the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) benefits under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, enacted to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. The indictment was returned on August 8, 2023, and unsealed yesterday upon Sosa and Lipartiya’s arrests.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Joe Aiosa of the Office of Inspector General, U.S. Agency for International Development; Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the indictment, sisters Dinara Sosa and Elza Lipartiya, submitted over 25 PPP loan applications, and over 15 EIDL applications on behalf of multiple businesses, and provided false information to multiple financial institutions and the SBA in order to obtain COVID-19 benefits. The information included the submission of fraudulent IRS forms, false representations regarding the applying entity’s average monthly payroll and false representations regarding the number of employees of the purported businesses.
If convicted, the defendants each face a maximum sentence of 30 years in federal prison for each count of wire fraud, and conspiracy to commit wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by an indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by the USAO, USAID-OIG, TIGTA, and IRS-CI.
The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
United States Attorney Erek L. Barron commended the USAID-OIG, TIGTA, and IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Michael F. Aubin and Harry M. Gruber who are prosecuting the cases.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Sexual Abuser Sentenced to 15 Years in PrisonRead the Press Release
PHOENIX, Ariz. – Vandrick Yazzie, 34, of Red Mesa, Arizona, was sentenced by United States District Judge Douglas L. Rayes to 180 months in prison. Yazzie pleaded guilty to Abusive Sexual Contact of a Child.
Between 2018 and 2019, Yazzie, an enrolled member of the Navajo Nation, sexually abused the minor victim while she was in his care on the Navajo Nation. After Yazzie finishes serving his prison term, he will be placed on supervised release for the rest of his life, and required to register as a sex offender.
The Federal Bureau of Investigation and the San Juan County New Mexico Sheriff’s Office conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR 21-08132-PCT-DLR
RELEASE NUMBER: 2023-137_Yazzie# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Seattle, Washington, man sentenced to 5 years in prison for drug trafficking on 3rd and Pike while armed with a handgunRead the Press Release
Seattle – A 30-year-old man from Seattle, WA was sentenced today in U.S. District Court in Seattle to 60 months and one day in prison for drug trafficking and using a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Tessa M. Gorman. Lavonta Austin pleaded guilty in July of 2023 in U.S. District Court in Seattle. At the sentencing hearing, U.S. District Judge James L. Robart, said, “The statistics are just bleak. People die every day from drug overdoses, but you can’t have overdoses without someone selling the drugs. Gun violence is rampant in our society, but you can’t have gun violence without someone carrying a loaded 45 caliber gun.”
“Both 3rd and Pine and 12th and Jackson are areas hard hit by the dangers of fentanyl and firearms,” said Acting U.S. Attorney Tessa M. Gorman. “It is important that we do all we can to keep those areas safe, the businesses around it open, and deadly drugs off the streets.”
According to records filed in the case, Lavonta Austin was first contacted by Seattle Police at 3rd Avenue and Pike Street in downtown Seattle on August 4, 2022. Austin sold fentanyl pills to an undercover officer, and then attempted to run from the police. The police took him into custody. Austin had been carrying methamphetamine, fentanyl, more than $2,000 in cash, and a loaded 45-caliber handgun. A few months later, on October 9, 2022, Austin was arrested at a Seattle motel with fentanyl, methamphetamine, $1,770 in cash, and a loaded 9mm handgun. Both the prosecution and the defense recommended a 5-year sentence.
Austin pleaded guilty to possession of controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. The drug possession charge is punishable by up to 20 years in prison. The gun crime is punishable by a mandatory minimum of five years in prison that runs consecutively to the sentence imposed on the drug possession charge.
This case is part of an effort to reduce drug trafficking and gun violence at 3rd and Pine and 12th and Jackson in Seattle. The City of Seattle, along with the Seattle Police Department, the King County Sherriff’s Office, the Drug Enforcement Agency, and the U.S. Attorney’s Office of Western Washington are all a part of this coordinated effort.
The Western District of Washington prosecuted several cases in conjunction with the effort to improve public safety on Third and Pine and 12th and Jackson. All of these cases involved charges of drug trafficking and related firearms crimes, including:
Kendall Alston, who was sentenced to 60 months and one day in February 2023;
Ceandrick Davis, who was sentenced to 60 months and one day in January 2023;
Mar’jon Guyton, who was sentenced to 24 months in January 2023;
Joseph Johnson, who was sentenced to 48 months in May 2023;
Cuong Cao and Amirkai Brown, both of whom are pending trial over the next several months.
This case was investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA). This case was prosecuted by Assistant United States Attorney Cecelia Gregson.
Sacramento Man Indicted for Attempted Sexual Exploitation of a Minor and Distribution and Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — On Sept. 14, 2023, a federal grand jury returned a three-count indictment against Bruce Anthony Garcia, 41, of Sacramento, charging him with the attempted sexual exploitation of a minor and distribution and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Aug. 2, 2017, and Sept. 1, 2019, Garcia attempted to sexually exploit a minor by producing visual depictions of the minor engaged in sexually explicit conduct. In June 2022, Garcia distributed child pornography, and in January 2023, Garcia was found in possession of child pornography.
This case is the product of an investigation by the Internet Crimes Against Children Unit of the Sacramento Valley Hi-Tech Crimes Task Force and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.
If convicted, Garcia faces a mandatory minimum penalty of 15 years in prison, a maximum of up to 30 years in prison, and a $250,000 fine for attempted sexual exploitation of a minor; a mandatory minimum of five years in prison, a maximum of 20 years in prison, and a fine of up to $250,000 for distribution of child pornography; and a maximum of 20 years in prison and a fine of up to $250,000 for possession of child pornography. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Rock Island Man Sentenced to Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, IA – A Rock Island, Illinois, man was sentenced on Tuesday, September 19, 2023, to 60 months in federal prison for possession with intent to distribute heroin, fentanyl, and cocaine base, and felon in possession of firearms.
According to public court documents, Jaylyn Devell McGhee, 27, brought his son to the emergency room in Davenport after sustaining a gunshot wound outside McGhee’s residence in July 2021. Law enforcement responded to the residence and located heroin and fentanyl in the street where McGhee’s vehicle was parked during the shooting. Officers obtained a search warrant for McGhee’s residence after locating a blood trail to the residence. In the kitchen, law enforcement located distribution quantities of cocaine base and a substance containing heroin and fentanyl. In a bedroom closet, two loaded firearms were located. As a convicted felon, McGhee is prohibited from possessing firearms and ammunition.
Following his term of imprisonment, McGhee was ordered to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Rochester Drug Conspiracy Leader Going to Prison for More Than 17 YearsRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Jancarlos Gonzalez-Rivera a/k/a Los, 37, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and distribute, 400 grams of more of fentanyl, for his role as the leader of a large and long-standing illegal narcotics ring operating in the Rochester area, was sentenced to serve 210 months in prison by Chief U.S. District Judge Elizabeth A. Wolford. Gonzalez-Rivera was also ordered to forfeit three firearms, $225,000 in cash, and jewelry seized from his house valued at approximately $118,000.
Assistant U.S. Attorney Everardo A. Rodriguez, who handled the case, stated that between May 2018, and April 30, 2020, Gonzalez-Rivera conspired with others to sell fentanyl. Gonzalez-Rivera’s role in the conspiracy included communicating with his suppliers to arrange for fentanyl deliveries, arranging for drugs and drug proceeds to be stored at locations in the Rochester area, including 79 Branch Street, bagging and processing fentanyl for distribution to customers and co-conspirators, distributing fentanyl to others, and receiving and storing cash proceeds from the distribution of fentanyl. On April 30, 2020, numerous search warrants were executed in connection with the investigation, including at one of Gonzalez-Rivera’s stash houses where investigators seized approximately 982 grams of fentanyl and 67 grams of heroin, three handguns, drug paraphernalia, and approximately $225,000 in cash. At Gonzalez-Rivera’s residence, investigators found approximately $9,800 and numerous pieces of jewelry, including two Rolex watches valued at $55,000 and $35,000.
The sentencing is the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Rochester Police Department, under the direction of Chief David Smith, the New York State Police, under the direction of Major Brian Ratajczak, the Greece Police Department, under the direction of Chief Michael Wood, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, the U.S. Marshal Service, under the direction of Marshal Charles Salina; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Ontario County Sheriff’s Office, under the direction of Sheriff David Cirencione, and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci. Additional assistance was provided by the Drug Enforcement Administration, Buffalo and Syracuse Resident Offices.
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Retired FBI Special Agent in Charge Pleads Guilty to Concealing Information from the Federal Bureau of InvestigationRead the Press Release
Charles F. McGonigal Admits Receiving $225,000 Cash Payment
WASHINGTON - Charles F. McGonigal, 55, a former Federal Bureau of Investigation (FBI) Special Agent in Charge of the New York Field Office, pleaded guilty today to concealment of material facts for his undisclosed receipt of $225,000 in cash from an individual who had business interests in Europe while McGonigal was supervising counterintelligence efforts. The plea was accepted by U.S. District Court Judge Colleen Kollar-Kotelly, who scheduled sentencing for February 16, 2024.
The plea was announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Assistant Director in Charge of the FBI’s Los Angeles Field Office Donald Alway, and Assistant Director in Charge of the FBI’s Washington Field Office David Sundberg.
According to papers filed with the Court, from August 2017, and continuing through his retirement from the FBI in September 2018, McGonigal concealed from the FBI the nature of his relationship with a former foreign security officer and businessperson who had ongoing business interests in foreign countries and before foreign governments. Specifically, McGonigal received at least $225,000 in cash from the individual and traveled abroad with the individual and met with foreign nationals. The individual later served as an FBI source in a criminal investigation involving foreign political lobbying over which McGonigal had official supervisory responsibility.
The charge carries a statutory maximum sentence of five years in prison. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The court will determine the actual sentence based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI’s Los Angeles and Washington Field Offices.
The case was prosecuted by Assistant United States Attorneys Elizabeth Aloi and Stuart D. Allen, and former Assistant United States Attorney Michael Friedman of the U.S. Attorney’s Office for the District of Columbia, with assistance from Deputy Chief Evan N. Turgeon of the DOJ’s National Security Division Counterintelligence and Export Control Section, and the Criminal Division’s Office of International Affairs.
Retired FBI Special Agent in Charge Pleads Guilty to Concealing Information from the FBIRead the Press Release
Charles F. McGonigal, 54, a former FBI Special Agent in Charge of the New York Field Office, pleaded guilty today to concealment of material facts for his undisclosed receipt of $225,000 in cash from an individual who had business interests in Europe while McGonigal was supervising counterintelligence efforts. The plea was accepted by U.S. District Court Judge Colleen Kollar-Kotelly, who scheduled sentencing for Feb. 16, 2024.
According to papers filed with the court, from August 2017, and continuing through his retirement from the FBI in September 2018, McGonigal concealed from the FBI the nature of his relationship with a former foreign security officer and businessperson who had ongoing business interests in foreign countries and before foreign governments. Specifically, McGonigal received at least $225,000 in cash from the individual and traveled abroad with the individual and met with foreign nationals. The individual later served as an FBI source in a criminal investigation involving foreign political lobbying over which McGonigal had official supervisory responsibility.
The charge carries a statutory maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office, and Assistant Director in Charge David Sundberg of the FBI’s Washington Field Office made the announcement.
The FBI Los Angeles and Washington Field Offices are investigating the case.
Assistant U.S. Attorneys Elizabeth Aloi and Stuart D. Allen, and former Assistant U.S. Attorney Michael Friedman for the District of Columbia are prosecuting the case, with assistance from Deputy Chief Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs provided valuable assistance.
Readout of U.S. Attorney General Merrick B. Garland’s Meeting with Ukrainian Prosecutor General Andriy KostinRead the Press Release
U.S. Attorney General (AG) Merrick B. Garland hosted Ukrainian Prosecutor General (PG) Andriy Kostin at the Justice Department today. The two leaders discussed efforts to hold accountable perpetrators of war crimes and other atrocities and the importance of strong, independent anti-corruption institutions.
“The Justice Department and the Ukrainian Prosecutor General’s Office are united in our resolve that the Russian perpetrators of aggression, war crimes, and crimes against humanity in Ukraine will not get away with them,” said Attorney General Merrick B. Garland. “And the Justice Department will continue to stand beside our Ukrainian partners as they work to ensure the continuity of a justice system the Ukrainian people can believe in.”
The meeting highlighted the important progress that the Department’s War Crimes Accountability Team, in partnership with PG Kostin’s Office, continues to make in its domestic investigations. The team also continues its support for Ukraine accountability efforts by providing Ukrainian prosecutors with operational assistance and advice including, recent training on environmental crimes and cooperation on victim witness issues. The AG also noted that earlier this month, the Department’s War Crimes Accountability Team made its second set of contributions of Ukraine-related evidence to Eurojust’s Core International Crimes Evidence Database.
The AG and PG also discussed the work of the newly appointed U.S. Special Prosecutor for the Crime of Aggression at the International Centre for the Prosecution of the Crime of Aggression Against Ukraine at The Hague as well as the work of the Department’s Resident Legal Advisor in Kyiv, Ukraine. After reaffirming their commitment to these important efforts, the leaders identified areas for strengthened law enforcement cooperation, including efforts against cybercrime, organized crime, and community prosecution.
AG Garland reiterated the Department’s commitment to work with Ukraine’s Prosecutor General’s Office, the Specialized Anti-Corruption Prosecutor’s Office (SAPO), and the National Anti-Corruption Bureau (NABU) to support and strengthen efforts to target high-level corruption, through the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) Resident Legal Advisor in Kyiv.
The PG and Ambassador of Ukraine to the United States Oksana Markarova then presented Attorney General Garland with the Order of Prince Yaroslav the Wise award that President Zelenskyy authorized for the Attorney General’s steadfast support to Ukraine.
Also at the meeting was the Justice Department’s Counselor for War Crimes Accountability, Eli Rosenbaum, who accepted the order of merit award presented by PG Kostin and authorized by President Zelenskyy.
Attorney General Garland also reaffirmed the Department’s continued commitment to seizing and forfeiting illicit assets through the Department’s Task Force KleptoCapture and efforts of preventing and disrupting critical technology from being acquired by the Russian war machine.
PG Kostin updated the AG on anticorruption efforts as well as the importance of efforts to recover and seek justice for Ukrainian children kidnapped and forcibly deported by Russia and the gravity of Russian war crimes against Ukrainian children and adults.
Oneida County Man Charged with Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – James H. Swanson, age 57, of Rome, New York, appeared in federal court last week on charges of receipt and transportation of child pornography, announced United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to a federal complaint, for years Swanson used electronic devices to access and download child pornography from the Internet that he then uploaded to a cloud storage account under his control. The charges in the criminal complaint are merely accusations. Swanson is presumed innocent unless and until proven guilty.
Following a hearing on September 21, United States Magistrate Judge Andrew T. Baxter released Swanson on conditions of supervision pending trial.
If convicted, Swanson faces a minimum term of 5 years in prison and a maximum term of 20 years, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Swanson would also be required to register as a sex offender.
Anyone with information related to this case can report it by calling the Homeland Security Investigations (HSI) tipline at 1-866-347-2423.
The case is being investigated by HSI, the New York State Police, and the Oneida County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Adrian S. LaRochelle as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Oklahoma Woman Pleads Guilty to Making a False Statement to a Financial Institution as Part of CARES Act Fraud SchemeRead the Press Release
OKLAHOMA CITY – Today, KIMBERLY ATLANTA TIPTON, 43, of Oklahoma City, pleaded guilty to making a false statement to a financial institution, announced U.S. Attorney Robert J. Troester.
On April 4, 2023, a federal grand jury returned a 15-count Indictment against Tipton, charging her for devising and carrying out a scheme to steal Economic Impact Payments (EIPs) from several Oklahoma residents.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law in March, 2020, to address the economic fallout of the COVID-19 pandemic. The CARES Act in part provided EIPs, commonly known as “stimulus checks”, to American households.
According to the Indictment, from on or about July 9, 2020, to on or about January 5, 2022, Tipton illegally intercepted and deposited 119 EIP checks, totaling $126,400.00. These checks were intended to be paid to individuals other than Tipton. The Indictment alleges Tipton accessed an IRS database, changing the addresses of the individuals the EIPs were intended for, to one of four addresses located in the Western District of Oklahoma where Tipton received mail. She then deposited the checks in two bank accounts under her control, one of which was fraudulently opened using a victim’s illegally obtained personal information.
Today, Tipton pleaded guilty to Count 11 of the Indictment, making a false statement to a federally insured financial institution. As part of her plea, Tipton admitted to knowing the statement was false when she made it, and further admitted that she made the false statement with the purpose of influencing the financial institution.
At sentencing, Tipton faces up to 30 years in federal prison and a fine of up to $1,000,000.00. She also faces restitution in the amount of $126,400.00.
This case is the result of an investigation by the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Stan J. West is prosecuting the case.
Nine Alleged Gun, Drug Traffickers Charged in Fort WorthRead the Press Release
Nine men accused of selling drugs and guns in Fort Worth have been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The defendants were charged in three separate criminal complaints with a variety of offenses, including conspiracy to distribute fentanyl and felon in possession of a firearm. During September, search warrants were executed and eight of the nine defendants were arrested in Fort Worth by ATF Agents and Fort Worth Police Department Officers.
Those charged include:
- Dewayne Thomas, aka “DJ”, charged with felon in possession of a firearm (Glock 10mm pistol)
- Anthony Williams, aka “Fresh,” charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- Marvis Jones, aka “Twin,” charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- Marquon McClain, aka “Flame,” charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- Antwon Crosby, aka “Twon,” charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- AJ Anderson Williams, Jr., charged with conspiracy to possess with intent to distribute a controlled substance (fentanyl)
- Regina McDowell, aka “Lil Reg,” charged with felon in possession of a firearm (Canik 9mm pistol)
According to the complaints, a series of ATF confidential informants, often accompanied by undercover agents, made undercover gun and drug purchases from the defendants.
Across more than a dozen transactions in June and July, confidential informants allegedly purchased more than 94 grams of fentanyl pills, more than 57 grams of methamphetamine, and nine firearms, including one privately made firearm, or “ghost gun.”
Most of the transactions were completed in convenience store and fast food parking lots, motels, or smoke shops. On at least two occasions, defendants, who said they were suspicious of police vehicles in the area, met an informant in one location and then allegedly led him to another location to complete the purchase.
Criminal complaints are merely allegations of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face up to twenty years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division conducted the investigation with the assistance of the Fort Worth Police Department. Assistant U.S. Attorney Levi Thomas is prosecuting all three cases.
Nigerian National Pleads Guilty to His Role in A Business Email Compromise SchemeRead the Press Release
Greenbelt, Maryland –Kosi Goodness Simon-Ebo, age 29, a Nigerian nation residing in South Africa, pleaded guilty yesterday to conspiracy to commit wire fraud and conspiracy to commit money laundering, related to a business email compromise (“BEC”) scheme with intended losses of the conspiracy of more than $6 million. Simon-Ebo arrived in the United States on April 12, 2023, after being extradited from Canada.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Matthew R. Stohler of the U.S. Secret Service - Washington Field Office.
According to his plea agreement, from February 2017 until at least July 2017, Simon-Ebo conspired with others to perpetrate a BEC scheme. Specifically, Simon-Ebo and his co-conspirators, including co-conspirators residing in Maryland, gained unauthorized access to email accounts associated with individuals and businesses targeted by the conspirators and sent false wiring instructions to the victims’ email accounts from “spoofed” emails, which are emails with forged sender addresses, to deceive the victims into sending money to bank accounts controlled by perpetrators of the scheme, called “drop accounts.”
Further, during the same time frame, Simon-Ebo and his co-conspirators conspired to commit money laundering by disbursing the fraudulently obtained funds in the drop accounts to other accounts by initiating account transfers, withdrawing cash, obtaining cashier’s checks and by writing checks to other individuals and entities, to hide the true ownership and the source of those assets. As detailed in the plea agreement, the intended loss for transactions in which Simon-Ebo was directly involved—which were some, but not all of the transactions involving Simon-Ebo and his co-conspirators—was approximately $6,988,249 and the actual loss resulting from these transactions was at least $1,072,306. Simon-Ebo had direct control over at least $45,925 of the funds obtained from victims.
According to the plea agreement, Simon-Ebo will be required to pay a money judgment in the amount of $45,925 and pay restitution in the full amount of the victims’ losses, which the parties agree is at least $1,072,306.
Simon-Ebo faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and for the money laundering conspiracy. U.S. District Judge Deborah L. Boardman has scheduled sentencing for November 29, 2023, at 2:00 p.m.
United States Attorney Erek L. Barron commended HSI’s Mid-Atlantic El Dorado Task Force and the U.S. Secret Service for their work in the investigation and thanked the Justice Department’s Office of International Affairs for providing substantial assistance in securing the arrest and extradition. Mr. Barron thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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New York Man Sentenced to Federal Prison for Escaping from CustodyRead the Press Release
COLUMBIA, SOUTH CAROLINA — Shaquon Hines, 46, of Brooklyn, New York, was sentenced to 1o months in federal prison after pleading guilty to escaping from federal custody.
Evidence presented to the court showed that in 2011, Hines was sentenced to 188 months in prison after being convicted in the United States District Court of conspiracy to possess with intent to distribute 500 grams or more of cocaine. Hines’ sentence was later reduced, and he was released in October 2021 to report to a halfway house in Columbia to serve out the remainder of his federal sentence. Hines failed to report to the halfway house and remained at large. In July 2023, Hines was arrested in Hickory, North Carolina, after fleeing from police during a traffic stop. He was also found in possession of fentanyl and other drug paraphernalia.
Senior United States District Judge Cameron M. Currie sentenced Hines to 10 months in prison, to run consecutively to the undischarged term of imprisonment from Hines’ 2011 drug conviction. Hines also faces an eight-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the United States Marshals Service. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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