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Monday 24 July 2023
U.S. Postal Worker Is Indicted for Conspiracy to Commit Bank Fraud and Money LaunderingRead the Press Release
CHARLOTTE, N.C. – A federal indictment was unsealed in court today, following the arrest and initial appearance of Jakia McMorris, 32, of Charlotte, who is charged with conspiracy to commit bank fraud and money laundering conspiracy, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from at least May 2021, McMorris was an employee of the U.S. Postal Service (USPS), working as a city carrier at the North Tryon Station in Charlotte. The indictment alleges that on or around September 13, 2021, McMorris reported that, while she was delivering mail, she lost a USPS universal key that could open many U.S. mailboxes. After that day, McMorris allegedly stopped reporting for work at the USPS.
According to allegations in the indictment, beginning in September 2021, McMorris and her co-conspirators executed a scheme to commit bank fraud by stealing more than $40,000 in checks, including from the U.S. mail. The indictment alleges that the co-conspirators used stolen universal USPS keys to open multi-unit outdoor mailboxes in Charlotte and steal mail. The stolen mail included business checks.
As part of the scheme, the indictment alleges that the co-conspirators deposited the stolen checks into bank accounts they controlled, including in bank accounts in McMorris’s name. It is alleged that the co-conspirators then quickly withdrew the cash from the accounts before the banks detected the fraud. McMorris allegedly received a portion of the funds as payment for using her bank accounts to perpetuate the scheme. As part of the conspiracy, the indictment also alleges that the co-conspirators attempted to disguise the payments made to the defendant by using the fraudulent proceeds in McMorris’s bank account to purchase money orders, which McMorris then deposited back into her bank accounts.
McMorris was released on bond following her initial appearance in federal court today. The bank fraud conspiracy charge carries a maximum penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a statutory penalty of 20 years in prison and a $500,00 fine.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked USPS-OIG for the investigation which led to the charges.
Assistant U.S. Attorney Jenny Sugar with the U.S. Attorney’s Office in Charlotte is prosecuting the case.
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In a separate case, federal charges were filed against Douglas Gumbs, 38, of Charlotte, for mail theft and related charges. According to allegations in the indictment, from 2022 to April 2023, Gumbs engaged in a mail theft and bank fraud scheme by stealing large quantities of U.S. mail from residential and business mailboxes in Charlotte. The stolen mail included business and individual checks, credit cards, tax forms, and other financial information. In 2022, Gumbs allegedly was found with more than 850 individual pieces of stolen mail.
The indictment alleges that Gumbs deposited the stolen checks into bank accounts he controlled and withdrew the funds before the financial institutions learned that the deposited checks were stolen. The indictment further alleges that Gumbs engaged in identity theft by creating false identification documents in the names of individuals whose mail Gumbs’ had stolen. Gumbs then allegedly used the victims’ stolen identities in furtherance of the fraud, including to access the victims’ bank accounts and to open new bank accounts in some of the identity theft victims’ names.
Gumbs is currently in federal custody. He is charged with receipt and possession of stolen mail, theft of mail left for collection, destruction of letter boxes and bank fraud. The receipt and possession of stolen mail and theft of mail left for collection charges carry a maximum penalty of five years in prison and a $250,000 fine. The destruction of letter boxes charge carries a maximum penalty of three years in prison and a$250,000 fine. The bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine.
The charges against Gumbs are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The FBI in Charlotte and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
U.S. Attorney’s Office organizes gang resistance education and training for local school resource officersRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia partnered with the Georgia Alliance for School Resource Officers and Educators, the Georgia Public Safety Training Center, and the Georgia Gang Investigators Association last week to provide an intensive law enforcement training, “G.R.E.A.T.” (Gang Resistance Education and Training), for more than 40 police officers from school systems in the Northern District of Georgia.
“Many of law enforcement’s best work happens daily in our schools to keep our children safe while they learn. We are excited to facilitate this training, which will boost the ability of school resource officers to better connect with students in a positive way,” said U.S. Attorney Ryan K. Buchanan. “Our goal is to successfully divert children from the destructive life of crime that gang activity fosters. G.R.E.A.T. offers real-time skills training aimed at preparing officers for interactions with students who may face decisions regarding gang-affiliation, frequently by force. This training enables our office to expand our multi-faceted approach to stemming youth violence, youth incarceration and gang recruitment, providing an excellent addition to our annual summer youth violence intervention programs.”
“The voices of gangs are very loud in our kids' ears. They are robbing them of their opportunity for success. Our voices must be louder! Thanks to the U.S. Attorney, GASROE, GPSTC, and G.R.E.A.T., we can provide our kids with tools to help resist gangs,” said Ronald S. Applin Sr., Chief of Police, Executive Director of Safety, Atlanta Public Schools Police.
“It was an honor to work with the G.R.E.A.T. organization to host this gang intervention training with School Resource Officers (SRO) throughout the Northern District of Georgia. This training is another way to enhance our SROs skills and expertise in protecting our youth from gangs. Furthermore, we are grateful to have strong partnerships with the U.S. Attorney’s Office, Georgia Alliance for School Resource Officers and Educators, and Georgia Gang Investigators Association to bring trainings such as these to support our SROs in building strong relationships with our youth,” said Chris Wigginton, Executive Director, Georgia Public Safety Training Center.
G.R.E.A.T. is an evidence-based gang and violence prevention program built around school-centered, law enforcement officer-instructed classroom curricula. Since its inception, G.R.E.A.T. has been used to train thousands of sworn officers from around the United States as certified G.R.E.A.T. instructors.
The program is designed to prevent and reduce delinquency, youth violence, and gang membership – particularly for children during those formative years when the threat of introduction into gangs is most acute. The program also seeks to help children develop a more positive relationship with law enforcement and to offer students opportunities to model and practice life skills and attitudes needed to treat others with respect and empathy, make better choices, and set positive and achievable goals.
U.S. Attorney Buchanan, during televised remarks this week, emphasized the vital role that positive interactions between school children and law enforcement officers can play in preventing gangs from recruiting children in our communities (see U.S. Attorney’s Interview). “As we work to make our schools and communities safer, we know that building trust is critical,” said U.S. Attorney Buchanan. “G.R.E.A.T. will help these police officers develop skills critical in creating meaningful and positive interactions between students and law enforcement officers. These officers are already committed to keeping our children safe, and we believe this additional training will better enable them to speak directly to gang influences.”
The training arrived just in time for the start of the 2023-2024 school term. Determined to help keep children in the Northern District of Georgia safe in schools and out of gangs, over 40 school resource officers in metro-Atlanta agreed to participate in this week-long, intensive program. These officers, specifically chosen by their respective agencies, serve at over 70 local schools that enroll over 26,000 students. Several of the officers in attendance remarked on the critical need for law enforcement officers to hone skills in connecting with school children and gaining their trust – a central aim of the G.R.E.A.T. training curricula.
The training took place July 17- 21, 2023, at the Georgia Public Safety Training Center in Forsyth, and was presented by the Institute for Intergovernmental Research, a highly experienced team of professionals from around the country with extensive experience in gang prevention and intervention.
This training is also 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Lawrence Men Plead Guilty to Conspiring to Distribute Fentanyl at Veterans Affairs Medical Center in BedfordRead the Press Release
BOSTON – Two Lawrence men have pleaded guilty in federal court in Boston to conspiring to distribute fentanyl to individuals at the Bedford Veterans Affairs Medical Center.
Deiby Bladimil Casado Ruiz, 30, and Pedro Antonio Sanchez Bernabel, 31, both of Lawrence, pleaded guilty on July 21, 2023 to one count each of conspiracy to distribute fentanyl and distribution of fentanyl. U.S. District Court Judge Indira Talwani scheduled Casado Ruiz’s sentencing for Nov. 1, 2023 and Bernabel’s sentencing for Nov. 6, 2023. The defendants were charged in November 2022
Between July 27, 2022 and November 2022, Casado Ruiz and Bernabel conspired to distribute more than 40 grams of fentanyl. Specifically, the defendants sold fentanyl to individuals at the Veterans Affairs Medical Center in Bedford, including one veteran who was seeking treatment at the Medical Center for a substance use disorder.
The charge of conspiracy to distribute and possess with intent to distribute fentanyl and the charge of distribution of fentanyl each provides for a maximum sentence of 20 years in prison, at least three years of supervised release and a maximum fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Christopher Algieri, Special Agent in Charge of the VA Office of Inspector General’s Northeast Field; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Bedford VA Medical Center Police Service and the Lawrence Police Department. Assistant U.S. Attorneys Patrick Callahan, Lauren Graber and Kelly Lawrence of the Health Care Fraud Unit are prosecuting the case.
Two Galt Men Indicted for Being Felons in Possession of FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday, July 20, 2023, against Galt residents Dexter Weeks, 32, and William Lesley, 33, charging both with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 25, 2023, law enforcement officers conducted a parole search of Weeks’ residence, where Lesley also was staying. Over the course of the search, law enforcement found multiple firearms of different calibers from in Week’s bedroom and Lesley’s bedroom and other areas of the residence. The firearms included a Saiga AK-47 semi-automatic rifle. Weeks and Lesley are prohibited from possessing firearms or ammunition because they each have multiple state felony convictions, including convictions for felon in possession of a firearm in Cook County, Illinois.
This case is the product of an investigation by the Sacramento Sheriff’s Office, the Parole Division of the California Department of Corrections and Rehabilitation, the Federal Bureau of Investigation, and the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Haddy Abouzeid is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the 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.
Three New Orleans Men Sentenced for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that TERRAN WILLIAMS, a/k/a “Funky,” age 25, ALLEN GRAY, a/k/a “Kyedi,” age 26, and KERRY BROOKS, age 34, all residents of New Orleans, Louisiana, were sentenced today by United States District Judge Carl J. Barbier in connection with a twelve-count indictment charging them with violations of the Federal Gun Control Act and the Federal Controlled Substances Act.
WILLIAMS was granted a downward variance and received a total sentence of 180 months imprisonment, four years of supervised release following his term of imprisonment, and a $600 mandatory special assessment fee.
GRAY received a total sentence of 180 months imprisonment, four years of supervised release following his term of imprisonment, and a $600 mandatory special assessment fee.
BROOKS received a total sentence of 197 months imprisonment, five years of supervised release following his term of imprisonment, and a $600 mandatory special assessment fee.
According to court records, WILLIAMS, GRAY, and BROOKS were charged with twelve separate counts related to four different events in which they were caught by police with guns and drugs. WILLIAMS and GRAY were charged in Counts 1, 2, and 3 with possession of marijuana and fentanyl with the intent to distribute, possessing firearms in furtherance of drug trafficking, and being felons in possession of firearms. Those three counts related to an August 26, 2020 car chase in which the defendants wrecked a Nissan Maxima during flight from police, leaving behind guns, drugs, and their phones with attached identification documents in the wrecked vehicle. The FBI obtained warrants for WILLIAMS and GRAY.
When the FBI arrested WILLIAMS on the outstanding warrant on September 12, 2020, he had a rifle, a pistol, and a large amount of marijuana. A grand jury subsequently charged WILLIAMS with three additional counts, Counts 4, 5, and 6, for possession with intent to distribute a quantity of marijuana, possessing firearms in furtherance of drug trafficking, and being a felon in possession of firearms.
Two days after arresting WILLIAMS, the FBI found GRAY and BROOKS in a New Orleans hotel room in possession of a large quantity of marijuana, over 40 grams of fentanyl bagged for distribution, $4,000 cash and two handguns with extended magazines. GRAY and BROOKS were ultimately charged in Counts 7, 8 and 9, with possession with intent to distribute marijuana and fentanyl, possession of firearms in furtherance of drug trafficking, and being felons in possession of firearms.
The FBI later arrested BROOKS at an apartment outside of New Orleans and recovered $20,000 in cash, a digital scale with powder, a small bag of fentanyl, and another pistol with an extended magazine. BROOKS was charged in Counts 10, 11 and 12, with possession with intent to distribute a quantity of fentanyl, possessing firearms in furtherance of drug trafficking, and being a felon in possession of a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. This case was prosecuted by Assistant United States Attorneys David Haller and Inga Petrovich of the Violent Crime Unit and Elizabeth Privitera, Chief of the Violent Crime Unit.
Texas Man and Nebraska Woman Sentenced for Second Degree Murder, Assault Resulting in Serious Bodily Injury, and Assault with a Dangerous WeaponRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Plano, Texas, man convicted of Second Degree Murder and a Niobrara, Nebraska, woman convicted of Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon.
Alexis Delarosa, age 33, was sentenced to 30 years and five months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Delarosa’s sentencing took place on July 20, 2023.
Justina Tuttle, age 39, was sentenced to six years and eight months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Tuttle’s sentencing took place on December 27, 2022.
Delarosa and Tuttle were indicted by a federal grand jury in September of 2021. Tuttle pleaded guilty on May 23, 2022. Delarosa pleaded guilty on March 22, 2023.
The convictions stemmed from an incident on December 21, 2020, at Wagner, South Dakota, when both Delarosa and Tuttle went to the residence of George Cournoyer, Jr. Once there, Delarosa and Cournoyer got into a physical fight which resulted in Delarosa hitting Cournoyer multiple times with a hammer. Tuttle joined in at some point and hit Cournoyer with a bat. Delarosa and Tuttle left the home without calling the police. Cournoyer died a short time later.
This case was investigated by the FBI and Yankton Sioux Law Enforcement. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
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.
Delarosa and Tuttle were immediately remanded to the custody of the U.S. Marshals Service following their respective sentencings.
Somerville Man Sentenced to Nearly Nine Years in Prison for Methamphetamine ConspiracyRead the Press Release
BOSTON – A Somerville man was sentenced on July 19, 2023 in federal court in Boston for his role in a methamphetamine trafficking conspiracy.
William Velez, 41, was sentenced by U.S. District Court Judge Denise J. Casper to 105 months in prison and three years of supervised release. In March 2022, Velez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine.
In or about October 2019 through in or about September 2020, Velez and others conspired to distribute and possessed with intent to distribute methamphetamine throughout the Everett and Boston areas.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division made the announcement today. Assistant United States Attorney Alathea Porter of the Narcotics & Money Laundering Unit prosecuted the case.Slidell Man Indicted for Federal Gun and Drug Offenses and Possession of Stolen VehicleRead the Press Release
NEW ORLEANS, LOUISIANA – MERVYN LUCAS, age 28, a resident of Slidell, Louisiana, was charged on May 19, 2023 in a four-count indictment for violating the Federal Gun Control Act, the Federal Controlled Substances Act, and possessing goods stolen from an interstate shipment, announced United States Attorney Duane A. Evans. The indictment was unsealed on July 21, 2023.
LUCAS is charged in Count 1 with possession with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D). He is charged in Count 2 with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). He is charged in Count 3 with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). He is charged in Count 4 with possession of a vehicle stolen from an interstate shipment, in violation of Title 18, United States Code, Section 659.
If convicted of Count 1, LUCAS faces a maximum term of imprisonment of five years, up to a $250,000 fine, and at least two years of supervised release. If convicted of Count 2, he faces a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. If convicted of Count 3, he faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, and up to three years of supervised release. If convicted of Count 4, he faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to three years of supervised release. Each count also carries a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and the Louisiana State Police. Assistant United States Attorney David Berman of the Violent Crimes Unit is in charge of the prosecution.
Skimmer Gets Prison for Million-Dollar Financial Identity Theft SchemeRead the Press Release
SAN DIEGO – A Los Angeles metropolitan resident was sentenced today to 41 months in prison for repeatedly installing specialized devices to steal the financial information of unwitting victims at gas pumps throughout Southern California.
Haykaz Mansuryan, age 34, admitted in his plea agreement that he broke into dozens of gas pumps to install “skimmers”—customized electronic devices to steal credit and debit card information from unknowing patrons using the pumps. Mansuryan admitted that the conspiracy he participated in purloined over $1 million while he was involved.
"The public has the right to safely conduct everyday financial transactions,” said U.S. Attorney Randy S. Grossman. “Anyone who steals from unwitting victims will face justice.”
Mansuryan admitted that he and his accomplices broke into gas pumps throughout Southern California and installed customized skimming devices, built by other members of the scheme, to steal victims’ credit and debit card information during otherwise legitimate transactions. Mansuryan and his conspirators would then make unauthorized cards encoded with victims’ information for their own use, stealing victims’ funds, or otherwise sell victims’ financial information outright to others who would exploit it for their own gain.
According to court documents, law enforcement recovered 54 skimming devices from different Southern California gas stations visited by Mansuryan.
Mansuryan admitted in his plea agreement that he personally received $931,213.92 from the scheme over the course of his participation, which lasted from August 2018 to October 2021. He was ordered to forfeit that amount, and to participate in paying restitution of $923,374.14 to the victims of his crime together with his codefendants.
Other defendants in this and a related case previously received prison time for similar conduct. On January 6, 2023, Robert Fichidzhyan was sentenced to 41 months in custody for his role in building the skimmers used by Mansuryan and his associates. He was also ordered to pay $619,923.45 in restitution. On June 23, 2022, Margar Simonyan was sentenced to 12 months and 1 day in custody in related case number 21-cr-2659-BAS, together with $11,810 of forfeiture and restitution. One defendant remains a fugitive. Two defendants, Hayk Shakaryan and Vasiliy Polyak, are presently set for jury trial September 12, 2023. The remaining defendants are pending sentencing.
“This case is a great reminder that even the most technical and sophisticated criminal groups can be dismantled by the collaborative efforts of law enforcement professionals. I am truly proud of the hard work our dedicated men and women have performed on this case, which continues to show we will continuously pursue those taking advantage of unknowing victims and protect the U.S. financial system,” said Jason Reynolds, Special Agent in Charge with the San Diego Field Office of the United States Secret Service.
This investigation involved significant contributions from many different sources, including the Internal Revenue Service, Criminal Investigation; the San Diego Police Department; the San Diego County Sheriff’s Department; the Glendale Police Department; the California Department of Food and Agriculture’s Bureau of Weights and Measures; the U.S. Attorney’s Office for the Central District of California; and other state, local, and federal law enforcement partners, as well as assistance from and partnerships with the financial and private sectors, such as the National Cyber-Forensics Training Alliance (NCTFA). Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
DEFENDANTS Case Number 21-CR-2660-BAS
- Haykaz Mansuryan 34 Residence: Granada Hills, California
- Hayk Shakaryan 34 Residence: Glendale, California
- Davit Babayan 36 Residence: Granada Hills, California
- Artour Hakobyan 39 Residence: Glendale, California
- Petros Armutyan 36 Fugitive
- Hakop Karayan 44 Residence: Glendale, California
- Robert Fichidzhyan 40 Residence: North Hollywood, California
- Vasiliy Polyak 32 Residence: Glendale, California
SUMMARY OF CHARGES
Conspiracy to Use Unauthorized Access Devices and Possess Device-Making Equipment, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(2), and 1029(a)(4)
Maximum Penalty: five to ten years in prison, depending upon prior convictions; fine of $250,000 or twice the gross gain or loss
Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A (Defendants 1, 2, and 4 through 6 only)
Maximum Penalty: mandatory minimum two years in prison, consecutive to any other sentence
AGENCIES
U.S. Secret Service
Sioux Falls Man Sentenced for Attempted Enticement of a MinorRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Lawrence L. Piersol has sentenced a Sioux Falls, South Dakota, man convicted of Attempted Enticement of a Minor. The sentencing took place on July 24, 2023.
Sky Thomas Roubideaux, age 23, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Roubideaux was indicted by a federal grand jury in April of 2022. He was found guilty following a jury trial on April 20, 2023.
The conviction stemmed from an incident on March 7, 2022, when Roubideaux used his cell phone to attempt to coerce an undercover agent posing as a 15-year-old male to engage in sexual activity.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the FBI, Homeland Security Investigations, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Division of Criminal Investigation, and the SD Internet Crimes Against Children task force. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Roubideaux was immediately remanded to the custody of the U.S. Marshals Service.
Significant sentence imposed in multiple-man robbery crewRead the Press Release
HOUSTON – The final member of a 12-person robbery crew has been ordered to prison for his role in a string of armed jewelry store robberies, announced U.S. Attorney Alamdar S. Hamdani.
Kenneth Dewayne Cooper, 34, Houston, pleaded guilty Oct. 27, 2017.
U.S. District Judge Andrew Hanen has now imposed a total of 194 months in federal prison – 110 months for the robberies and a consecutive 84 months for aiding and abetting the use of a firearm during a crime of violence. The sentence will be to be immediately followed by three years of supervised release.
Others previously convicted and sentenced include Lontay Lavelle Young, 39, Deshaun Devon Waldrup, 27, Edward Ray Lavergne Jr., 39, Jesse Markise McQueen, 32, Kevin Craig Gray, 38, Louis Jerome Hines, 44, Terry Dwight Washington, 37, Tony Dontrel Young, 32, Barry Lloyd Jones, 30, Ross White-Leonard, 33, and Denzell Devoe Lucious, 31. All are from Houston.
Lontay Young, Tony Young, Waldrup, Lavergne, McQueen, White-Leonard and Jones received respective sentences of 209, 132, 125, 114, 180, 102 and 156 months, respectively. Gray and Washington both received 147-month-terms of imprisonment, while Hines was ordered to serve 171 months. Lucious was sentenced to 168 months.
“Trafficking in violence and fear, this armed robbery crew targeted a dollar store, a jewelry store in a mall, a furniture store and other similar places where regular families shop every day,” said Hamdani. “This U.S. Attorney’s Office will crack down on this type of violence and will continue to ensure the public safety by doing what we can by fighting for appropriate sentences in federal court to get violent actors off the streets.”
This group conducted at least six robberies over the course of six months at various commercial establishments.
On Oct. 22, 2015, Lontay Young and Hines robbed the Family Dollar store on Wayside in Houston while wearing masks and carrying handguns.
Then, on Jan. 11, 2016, Jones, Cooper, Lucious and McQueen traveled outside of Houston to rob the Ben Bridge Jewelers at Barton Springs Mall in Austin. There, they stole a significant amount of Rolex watches and jewelry.
Less than two weeks later, this group, along with Tony Young, also robbed the Kay Jewelers located at the Houston Premium Outlet Mall. While Jones, Cooper and Young accosted the employees at gunpoint, Lucious sat outside acting as a lookout. McQueen distracted the security guard while the robbery occurred. They again stole numerous watches and jewelry.
On March 3, 2016, Lontay Young, Washington, Gray and Lavergne also held up the ANF Auto Finance on North Shepherd Drive. They entered the business acting as customers until Gray pulled out a gun. They then stole cash and property of the business, employees and customers.
Lontay Young later proceeded to commit two more robberies. Those included the March 9, 2016, robbery of Cash America Pawn on Jensen Drive with Waldrup and the Affordable Furniture store on the North Freeway on March 17, 2016, along with Jones and White-Leonard.
At the time of the furniture store robbery, authorities arrived on scene and shots were fired.
All have been and will remain in custody.
The Bureau of Alcohol, Tobacco and Firearms conducted the investigation in conjunction with police departments in Houston and Austin and Harris County Sheriff’s Office. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
This case was prosecuted as part of the Houston Law Enforcement Violent Crime Initiative, which combines personnel and resources from numerous federal, state and local agencies. The goal is to reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Under the PSN umbrella, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN partners focus enforcement efforts on the most violent offenders and work with locally based prevention and reentry programs for lasting reductions in crime.
Settlement with Rakesh Kansal, M.D. for Violations of the Stark Law Regarding Physician Self-ReferralsRead the Press Release
HAMMOND - United States Attorney Clifford D. Johnson announced today a settlement of the United States’ claims against Rakesh Kansal, M.D., age 70, for submitting claims to Medicare for patients he referred for cardiovascular stress testing at a testing facility in which he had an ownership interest. Dr. Kansal has agreed to pay $310,000 to the United States to settle the United States’ claim that he violated the False Claims Act by knowingly submitting claims to Medicare in violation of the Stark Law.
The Stark Law provides that the government will not pay for designated health services if such services were furnished by an entity that had a financial relationship with the referring physician because such financial relationships can cause overutilization of those services and compromise the physician’s professional judgment. The cardiovascular stress tests for which Dr. Kansal billed Medicare are designated health services. The False Claims Act prohibits a physician from knowingly submitting claims for payment to Medicare for such services.
The United States alleges that from January 1, 2010, to May 31, 2020, Dr. Kansal submitted claims to Medicare for patients he referred for cardiovascular stress tests to a testing facility where he had an ownership interest, in violation of the False Claims Act and the Stark Law.
“All medical decisions should be based on the best interests of patients and not on the personal financial interests of referring physicians,” said United States Attorney Clifford D. Johnson. “My Office will continue to make it a high priority to avoid overutilization of health care services by enforcing the Stark Law prohibiting physician self-referrals.”
The settlement was reached as a result of an investigation of Dr. Kansal conducted by the United States Attorney’s Office for the Northern District of Indiana. The case was handled by Assistant United States Attorney Dirk D. De Lor.
Second Man Admits Armed Robbery of St. Louis 7-ElevenRead the Press Release
ST. LOUIS – A convicted felon pleaded guilty Monday to three federal felonies and admitted robbing a St. Louis, Missouri 7-Eleven at gunpoint in 2020.
Harvey Cameron, 32, of Ferguson, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to robbery, possession and brandishing of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm.
Cameron admitted that on June 21, 2020, he and Monte Kent drove to the 7-Eleven at 5350 Chippewa Street to rob it. One of the men entered the store and pointed a Zastava AK-47-style rifle at an employee, demanding cash from the register. The pair were caught shortly after the robbery, with the cash and the gun.
Cameron is scheduled to be sentenced October 30.
Judge Fleissig sentenced Kent, now 35, of Jennings, to 10 ½ years in prison in March of 2022 after he pleaded guilty to robbery and the firearm brandishing charge.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI.
Roscoe, Ill. Man Sentenced to Nearly 9 Years in Federal Prison on Firearm and Drug Trafficking ChargesRead the Press Release
ROCKFORD — A Roscoe, Ill. man has been sentenced to nearly nine years in federal prison for trafficking cocaine and fentanyl and possessing a firearm in furtherance of his drug trafficking activities.
XZAVIOR SMITH, 24, pleaded guilty earlier this year to knowingly and intentionally possessing the cocaine and fentanyl with the intent to distribute, and possessing a Glock 19 pistol in furtherance of a drug trafficking crime. U.S. District Judge Iain D. Johnston in Rockford sentenced Smith to eight years and ten months in federal prison.
On June 14, 2021, Freeport Police Department officers attempted to execute a traffic stop on Smith’s vehicle. Smith refused to pull over, then accelerated and ignored traffic signs while fleeing towards Durand, Ill. Shortly thereafter, the Stephenson County Sheriff’s Department attempted to stop Smith on Route 75. Smith did not stop and again accelerated, reaching speeds of up to 113 miles per hour. Eventually, Smith pulled into a private driveway and fled on foot, discarding bags containing cocaine and fentanyl and a loaded Glock pistol with an extended magazine loaded with 29 rounds of ammunition. Smith was located by pursuing members of law enforcement.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Stephenson County Sheriff’s Office, the Freeport Police Department, the Roscoe Police Department, and the Beloit, Wisc., Police Department’s Crime Interdiction Team. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Real Estate Investor Sentenced in $3 million Wire and Bankruptcy Fraud SchemeRead the Press Release
DETROIT - Former real estate investor Sean Tissue, also known as “Sean Ryan,” was sentenced to 78 months’ in prison today arising from his role in perpetrating a $3 million investment and bankruptcy fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement was Acting Special Agent in Charge Devin J. Kowalski of the Detroit Field Office of the Federal Bureau of Investigation (FBI).
In February 2023, Tissue pleaded guilty to one count of Wire Fraud and one count of Withholding Information in a Bankruptcy Proceeding. During the plea hearing, Tissue acknowledged that his scheme cost investors and creditors approximately $3 million.
According to court documents, Tissue orchestrated a substantial real estate investment fraud scheme from approximately 2015 through 2021. Tissue and those working with him made numerous fraudulent representations to potential investors from Israel, India, South Africa, and other countries, trying to convince them to invest in supposed real estate in Michigan, Texas, and other locations. Many victims did invest funds with Tissue and lost those funds in the process. To further the scheme and keep investor money flowing into it, Tissue caused false documents to be provided to investors, including fake deeds, fake wiring instructions, fake bank statements, fake leases, and fake inspection reports. Tissue even provided a fake name to investors (“Sean Ryan”). Tissue converted the $3 million in fraudulently obtained funds to his own personal use.
Tissue also engaged in bankruptcy fraud by knowingly and fraudulently withholding recorded information pertaining to his assets and financial affairs from the Bankruptcy Trustee after filing for Chapter 7 bankruptcy in 2017.
“Sean Tissue lied repeatedly to investors over the course of many years, and his lies continued when he tried to escape his debts by filing for bankruptcy, stated U.S. Attorney Dawn Ison. “Today’s sentence provides substantial punishment for Tissue’s long history of fraud and reflects the serious consequences that await those who abuse our financial and bankruptcy systems.”
“The defendant defrauded his real estate clients and then attempted to escape the consequences by declaring bankruptcy. These actions not only harmed individual clients, but also impacted potential investments in the City of Detroit,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Division. “We would like to thank our partners, including the U.S. Attorney’s Office and Bankruptcy Trustee, for assisting the FBI as we investigate those who knowingly defraud organizations and bring them to justice.”
In addition to his term of incarceration, U.S. District Judge Mark A. Goldsmith also sentenced Tissue to a three-year term of supervised release.
The case was prosecuted by Special Assistant United States Attorney Richard Roble and former Assistant United States Attorney Craig A. Weier. The investigation was conducted by the FBI. Bothe the United States Attorney’s Office and the FBI thank the United States Trustee’s Office for its assistance with this case.
Readout of the Justice Department’s Sexual Abuse Facility Enhancement and ReviewRead the Press Release
Last week, the Justice Department completed its initial deployment of Sexual Abuse Facility Enhancement and Review (SAFER) teams to visit women’s facilities across the Federal Bureau of Prisons (BOP). Following these visits, the Deputy Attorney General has asked the SAFER teams to identify corrective actions and prepare recommendations as part of the Department’s ongoing efforts to root out sexual misconduct within the BOP.
The Deputy Attorney General launched the SAFER team project to visit women’s facilities in each of BOP’s six regions and engage with leadership, staff, and women in custody at those facilities. During each visit, the team reviewed the facility’s progress implementing the recommendations of the Department’s Sexual Misconduct Working Group, including its initiatives to promote timely and effective reporting consistent with the Prison Rape Elimination Act (PREA). The team also reviewed the facility’s conditions, medical and mental health services, reentry programming, and Special Housing Unit, and spoke directly with women in custody. In addition, the teams met with local non-profit organizations that contract with the BOP to provide support services and resources to survivors of sexual abuse.
Principal Associate Deputy Attorney General (PADAG) Marshall Miller led the first SAFER visit on June 9, and over the past six weeks, personnel from the Office of the Deputy Attorney General (ODAG) have led teams to visit the following women’s facilities:
- Federal Correctional Institution (FCI) Tallahassee, a low-security facility in Tallahassee, Florida;
- FCI Waseca, a low-security facility in Waseca, Minnesota;
- FCI Danbury, a low-security facility with an adjacent low-security satellite prison and minimum-security satellite camp in Danbury, Connecticut;
- Federal Detention Center (FDC) SeaTac, an administrative security federal detention center in Seattle;
- Federal Medical Center (FMC) Carswell, an administrative security federal medical center with an adjacent minimum security satellite camp in Fort Worth, Texas; and
- Federal Prison Camp (FPC) Alderson, a minimum-security federal prison camp in Alderson, West Virginia.
In addition to representatives from ODAG and BOP, SAFER teams included officials from across the Department, including the Office of the Attorney General (OAG), the Office of the Associate Attorney General (OASG), the Office for Access to Justice (ATJ), the Civil Rights Division (CRT), the Criminal Division (CRM), Executive Office for U.S. Attorneys (EOUSA), the FBI, the Office of Legal Policy (OLP), Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW). Representatives from U.S. Attorneys’ Offices also joined the SAFER team visits in their respective districts.
Reading Owner of Telemedicine Companies Charged with $44 Million Medicare Fraud SchemeRead the Press Release
BOSTON – The owner of Conclave Media (Conclave) and Nationwide Health Advocates (Nationwide) has been charged and has agreed to plead guilty in connection with a $44 million telemedicine fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces, and genetic tests.
David Santana, 38, has agreed to plead guilty to one count of conspiracy to commit health care fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, between January 2018 and August 2021, Santana, through his companies Conclave and Nationwide, entered into business relationships with telemarketing companies that generated leads by targeting Medicare beneficiaries. The telemarketers then allegedly paid Conclave and Nationwide on a per-order basis to generate orders for DME and genetic testing for these beneficiaries. To arrange for these orders to be signed, Santana allegedly worked with medical staffing companies to find doctors and nurses who were willing to review and sign prepopulated orders, typically without any contact with the beneficiaries. It is alleged that the records falsely portrayed the medical providers as having performed a legitimate examination of the beneficiary. Santana then allegedly provided the signed orders to the telemarketing companies which sold the orders to DME suppliers and laboratories. It is alleged that Santana knew these DME suppliers and laboratories would use the signed orders to submit claims to Medicare for DME and genetic testing that were medically unnecessary, based on false documentation and tainted by kickbacks.
The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, supervised release for up to three years, and a fine of up to $250,000 or twice the gross pecuniary gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Robert Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; Christopher DiMenna, Acting Special Agent in Charge, Federal Bureau of Investigations, Boston Division; Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service, Boston Division; Carol S. Hamilton, Regional Director, Employee Benefits Security Administration, U.S. Department of Labor; and Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigation Service, North East Field Office made the announcement today. Assistant U.S. Attorneys Howard Locker and Lauren Graber of the Health Care Fraud Unit and Alexandra Brazier and Lindsey Ross of the Affirmative Civil Enforcement Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Found Guilty of Sexual AbuseRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted Anthony Red Elk, age 34, of Rapid City, South Dakota, of one count of Aggravated Sexual Abuse and two counts of Sexual Abuse following a three-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on July 21, 2023.
The charges carry a mandatory minimum sentence of 30 years up to a maximum of life in custody and/or a $250,000 fine on each count, a minimum of five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for each count.
Red Elk was indicted by a federal grand jury in November of 2021.
The conviction stems from Red Elk engaging in a sexual act between 2008 and 2010, with a female minor who had not attained the age of 12 years, in Wanblee, on the Pine Ridge Reservation. Red Elk then sexually abused the same female in 2018 and 2019 in Wanblee.
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. Assistant U.S. Attorney Heather Knox prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for September 25, 2023. The defendant was remanded to the custody of the U.S. Marshals Service.
Pickens Man Sentenced to 10 Years in Federal Prison for Child Pornography OffenseRead the Press Release
GREENVILLE, SOUTH CAROLINA —Matthew Leon Arotin, 63, of Pickens, was sentenced to 10 years in federal prison after pleading guilty to possession of child pornography. He was also ordered to pay $68,000 in restitution to the victims whose images he possessed.
Evidence presented to the court showed that deputies with the Pickens County Sheriff’s Office received a cyber tip that child sexual abuse material was uploaded to a Google account. Investigation revealed that the account came back to an IP address associated with Arotin. Pickens County deputies obtained a search warrant for Arotin’s home and learned that he was a registered sex offender based on prior convictions. When confronted by deputies, Arotin admitted he had various electronic devices and deputies would find inappropriate pictures of children on them.
The devices were seized and forensically analyzed. Law enforcement discovered 1,334 still images and 135 videos of child pornography. Fourteen of the images and six of the videos featured sexual abuse of an infant or toddler.
This case was investigated by the Pickens County Sheriff’s Office and the Department of Homeland Security. Assistant United States Attorney Bill Watkins prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Owner of insurance company in Rosebud County charged in scheme to defraud customersRead the Press Release
BILLINGS — A Forsyth woman accused of defrauding customers through her insurance company, Rosebud County Insurance Inc., by spending client payments on personal expenses appeared today on charges, U.S. Attorney Jesse Laslovich said.
Kileen Moria Hagadone, 57, pleaded not guilty to an indictment charging her with six counts of wire fraud and three counts of aggravated identity theft. The maximum penalty for wire fraud is 20 years in prison, $250,000 fine and three years of supervised release. The penalty for aggravated identity theft is a mandatory minimum two years in prison, consecutive to any other punishment, a $250,000 fine and one year of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Hagadone was released pending further proceedings.
The indictment alleges that Hagadone owned and operated Rosebud County Insurance Inc., an insurance brokerage business, and acted as an intermediary between her customers and national insurance companies. Hagadone was required to help negotiate insurance contracts for her customers and then receive and transmit payments as a fiduciary from the customers to the companies for the negotiated policies. Hagadone and her company had a trust account with First State Bank of Forsyth designed to receive these payments.
As alleged in the indictment, from about 2020 until April 2023, Hagadone devised a scheme to receive payments from customers but failed to transmit the funds to the insurance companies. Instead, Hagadone misappropriated the funds and spent the money on personal expenses. In some instances, Hagadone fraudulently withdrew the money for her own use from the company trust account. At other times, Hagadone improperly deposited customer payments into the company’s business account so she could use the money. To help conceal the thefts, Hagadone allegedly stole the identities of several customers by forging their signatures on third-party financing contracts. As a result of the alleged scheme, many customers had their insurance policies canceled without their knowledge and had to repay the insurance companies for policies they had already paid for.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Colin M. Rubich is prosecuting the case. The Montana State Auditor, Commissioner of Securities and Insurance, FBI and Rosebud County Sheriff’s Office conducted the investigation.
PACER case reference. 23-85.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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Oglesby Construction, Inc. Agrees to Pay $942,146.40 to Resolve Allegations of False Claims for Highway Paint StripingRead the Press Release
CLEVELAND – Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio, announced today that Oglesby Construction, Inc., headquartered in Norwalk, Ohio, has agreed to pay the United States $942,146.40 to resolve allegations that it falsified material usage records while performing on federally subsidized contracts to apply paint striping to Ohio roadways between 2012 and 2018.
The allegations arise under the False Claims Act from a whistleblower complaint unsealed on July 19, 2023, and in which the United States intervened on July 14, 2023. The claims asserted against Oglesby are allegations only and there has been no determination of liability.
“The Justice Department is committed to eradicating fraud in all its forms to protect taxpayer dollars,” said U.S. Attorney Lutzko. “We cannot tolerate conduct that bilks the government of funds to support vital government programs.”
The Complaint alleges that Oglesby saved money on highway-striping contracts by failing to use sufficient marking material, including paint, to meet state or contractual minimum standards. Oglesby allegedly use different methods to hide its conduct.
One alleged method involved the manipulation of daily reports, which are required by the State of Ohio to monitor compliance with material usage standards. Contractors like Oglesby must assemble their reports using a tracking software application that obtains usage data from electronic devices on highway marking trucks. Oglesby allegedly embedded a hidden formula in a spreadsheet used by the tracking software, thereby altering data to conceal underapplication of material.
In another alleged scheme, Oglesby engineered a return pipe and pump system that redirected paint disbursed from a truck’s paint gun back to its load of unused paint. According to the Complaint, this would trick the truck’s monitoring device into recording application of paint when, in fact, the return pipe and pump system would intercept and recirculate it.
“This settlement with Oglesby ends a successful, years-long criminal and civil investigation into the company’s practices and sends a powerful message to those who wish to do the same,” said U.S. Attorney Lutzko. “We need to have trust that companies or individuals that receive compensation under federally subsidized contracts do the work required.”
On October 7, 2022, Gerald E. Reichert and his brother, Adam Reichert, two former part-owners of Oglesby, pleaded guilty for their involvement in falsifying paint-striping reports. The court sentenced each to a term of imprisonment and ordered them to pay a combined $579,014.00 in restitution, along with fines. The amount obtained in the civil settlement is in addition to criminal restitution and fines.
New Orleans Men Plead Guilty to Violations of the Federal Controlled Substances and Federal Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – JOHN GUILLORY, III, age 52, JOHN PETRIE, age 39, DEVIN JOHNSON, age 37, and LARRY MOSES, age 22, all residents of New Orleans, Louisiana, pled guilty to violations of the Federal Controlled Substances and Federal Gun Control Acts, announced U.S. Attorney Duane A. Evans. GUILLORY, PETRIE and JOHNSON each pled guilty to superseding bills of information charging them with conspiracy to distribute and possess with intent to distribute quantities of controlled substances, including cocaine hydrochloride, cocaine base (“crack”), marijuana, and fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and 846. GUILLORY also pled guilty to one count of distribution of a quantity of fentanyl and three counts of distribution of crack, all in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). Finally, GUILLORY, PETRIE, and MOSES pled guilty to being felons in possession of firearms in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, between December 2020 and August 2021, a confidential source made four controlled purchases of fentanyl and crack cocaine from GUILLORY. Further investigation revealed that PETRIE was GUILLORY’S narcotics source of supply and JOHNSON was PETRIE’S narcotics source of supply. On June 29, 2022, DEA Special Agents obtained warrants and searched the residences of all four men, seizing quantities of cocaine hydrochloride, crack, marijuana, fentanyl and heroin . Agents also seized a total of six firearms, including a KAHR Model CW9, nine-millimeter caliber pistol, a Taurus Model PT 24/7 Pro C DS, .45 caliber pistol, a Taurus Model PT111 G2, nine-millimeter caliber pistol, a Smith and Wesson Model SW40VE, .40 caliber pistol, an HK Model P30SK, nine-millimeter caliber pistol, and a Sarsilmaz Model SAR9, nine-millimeter handgun from GUILLORY, PETRIE and MOSES’s residences.
For the drug counts, GUILLORY, PETRIE, and JOHNSON each face a maximum term of imprisonment of twenty years, a fine of up to $1,000,000.00, a term of supervised release of at least three years, and a mandatory special assessment fee of $100.00 per count.
For the firearm counts, GUILLORY, PETRIE, and MOSES each face a maximum term of imprisonment of fifteen years, a fine of up to $250,000.00, a term of supervised release of up to three years, and a mandatory special assessment fee of $100.00 per count.
This case was investigated by the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
New Orleans Man Pleads Guilty to Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – On July 20, 2023, PERCY SMITH, age 43, a resident of New Orleans, La., plead guilty to a two-count indictment. Sentencing is set for October 26, 2023, announced U.S. Attorney Duane A. Evans.
SMITH is charged in Count 1 and Count 2 of the indictment with possessing a firearm, as a previously convicted felon, on two separate occasions, June 19, 2021, and June 30, 2021, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). SMITH faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00 per count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
New Orleans Man Indicted for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA -- CHRISTOPHER SHAW, age 35, of New Orleans, Louisiana, was indicted for violating the Federal Gun Control Act by being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1) announced U.S. Attorney Duane A. Evans.
According to the indictment, on January 24, 2023, SHAW was in possession of a Glock, Model 43, 9mm semi-automatic pistol after having been convicted in the Superior Court of California, County of Orange, on the felony charge of conspiring to pimp a prostitute under the age of 16.
If convicted, SHAW faces up to fifteen (15) years imprisonment to be followed by up to three (3) years of supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee. United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.
New Orleans Man Indicted for Theft from Interstate ShipmentRead the Press Release
NEW ORLEANS, LOUISIANA – MALIK MACK, age 26, a resident of New Orleans, Louisiana, was indicted on July 20, 2023 for theft from an interstate shipment, in violation of Title 18, United States Code, Section 659. The indictment alleges that MACK unlawfully stole a Ford F-150 Rapture Crew Cab truck with an approximate total value of $80,625.00. If convicted, MACK faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Norfolk Southern Railway Police, the United States Department of Homeland Security, the New Orleans Police Department, and the Louisiana State Police. The case is being prosecuted by Assistant United States Attorney Troy Bell of the General Crimes Unit.
New Jersey Man Sentenced to 20 Years for Production of Child PornographyRead the Press Release
LEXINGTON, KY- A man residing in Passaic, NJ, Alfredo Bermejo-Martinez, 24, was sentenced by Chief U.S. District Judge Danny Reeves on Monday to 20 years in prison, after pleading guilty to one count of production of child pornography.
According to his plea agreement, in late 2018 or early 2019, Bermejo-Martinez met a victim, residing in the Eastern District of Kentucky, online while playing a video game, and continued contact over a couple of years. In approximately September 2020, he began asking the victim to take and send him sexually explicit pictures via Snapchat.
The plea agreement further explains that Bermejo-Martinez traveled from New Jersey to Kentucky to see her on four separate occasions from February 2021 through May 2022. In April 2022, the victim ended the relationship with him and Bermejo-Martinez threatened to release nude images of the victim. A search of his phone revealed sexually explicit photos and videos of the victim, who Bermejo-Martinez admitted he knew was a minor.
Bermejo-Martinez pleaded guilty in March 2023.
Under federal law, Bermejo-Martinez must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 20 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations - Nashville; and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by HSI and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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New Jersey Man Sentenced for Conspiracy to Transport Illegal Aliens into the United StatesRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on July 24, 2023, Jose Ramon Gonzalez-Resendiz age 41, from New Jersey, was sentenced to 18 months in federal prison for Conspiracy to Transport Illegal Aliens into the United States.
According to court documents, Gonzalez-Resendiz and others partially carried out the smuggling of a group of nationals of Mexico across the United States-Canada border into North Dakota in late March 2023, planning to move them further into the United States in exchange for payment of thousands of dollars per person. The plan fell apart when a pickup truck they were using got stuck in the snow. The pickup had to be towed from the drifted snow and was discovered by Border Patrol agents later at a Langdon, North Dakota, hotel where the smugglers and some of the people they smuggled were staying.
Gonzalez-Resendiz’s two co-defendants, Armando De Dios-Carrillo and Victor Manuel Perez-Aguilera, were sentenced by Judge Welte to 24 months and 18 months, respectively, on July 13, 2023.
This case was investigated by the U.S. Border Patrol, with assistance from U.S. Customs and Border Protection -- Office of Field Operations and Pembina County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Jacob T. Rodenbiker.
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New Jersey Man Sentenced to 46 Months’ Imprisonment for Cocaine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carlos Perez-Rivera, age 37, of West New York, New Jersey, was sentenced on July 20, 2023, by U.S. District Court Judge Malachy E. Mannion, to 46 months’ imprisonment on the charge of possession with intent to distribute cocaine.
According to United States Attorney Gerard M. Karam, Perez-Rivera previously pleaded guilty and admitted to possessing four kilograms of cocaine for further distribution. The charge stems from an incident on March 23, 2022, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lackawanna County in which Perez-Rivera and another individual, Kelvin Vazquez-Pagan, age 24, of Passaic, New Jersey, were traveling. A subsequent search of the vehicle resulted in the seizure of approximately four kilograms of cocaine found hidden inside the vehicle.
Co-defendant Kelvin Vazquez-Pagan is awaiting sentencing.
The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration. Assistant United States Attorneys Robert J. O’Hara and Brian J. Gallagher prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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NASA-JPL Employee Agrees to Plead Guilty to Defrauding COVID-19 Economic Relief Program, Using Some Proceeds to Grow MarijuanaRead the Press Release
LOS ANGELES – A NASA-Jet Propulsion Laboratory (JPL) employee has agreed to plead guilty to defrauding a government-sponsored loan program designed to help people and businesses survive the COVID-19 pandemic’s economic impact and has admitted that he used part of the proceeds to fund illegal marijuana cultivation, the Justice Department announced today.
Armen Hovanesian, 32, of Glendale, a cost-control and budget-planning resource analyst for the JPL, a federally funded research and development center operated by the California Institute of Technology for NASA, agreed to plead guilty to a single-count information charging him with wire fraud. Both the information and a plea agreement were filed Thursday in United States District Court. Hovanesian is expected to make his initial court appearance on August 11.
According to the plea agreement, from June 2020 to October 2020, Hovanesian submitted three loan applications in the names of business entities under his control to the Economic Injury Disaster Loan Program (EIDL), a program administered by the Small Business Administration (SBA) that provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters, including businesses impacted by the COVID-19 pandemic.
Hovanesian admitted to making false and fraudulent statements in the loan applications concerning the gross revenues each of the businesses had generated in the preceding year as well as false and fraudulent statements concerning his intended use of loan proceeds.
Hovanesian certified to the SBA under penalty of perjury that he would “use all the proceeds” of the loans for which he applied and caused others to apply for “solely as working capital to alleviate economic injury caused by disaster” consistent with the terms and limitations of the EIDL program. But Hovanesian instead applied those proceeds toward his own prohibited personal benefit to repay a personal real-estate debt and fund his illegal marijuana cultivation. Hovanesian fraudulently caused the SBA to transfer via interstate wire EIDL proceeds totaling $151,900.
After Hovanesian pleads guilty, he will face a statutory maximum sentence of 20 years in federal prison.
The SBA Office of Inspector General and NASA Office of Inspector General are investigating this matter. The United States Secret Service also provided substantial assistance.
Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section is prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Multiple defendants prosecuted on federal firearms chargesRead the Press Release
SAVANNAH, GA: Four people have been indicted in the Southern District of Georgia on felony charges including illegal firearms possession, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal charges including illegal possession of firearms.
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally carry guns.
“In collaboration with our law enforcement partners, we are committed to the safety and security of our communities,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “Removing guns from the hands of violent criminals and convicted felons makes all of us safer.”
In the past four years, more than 835 defendants have been federally prosecuted in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony. That charge carries a statutory penalty of up to 15 years in prison, and there is no parole in the federal system.
Those indicted during the July term of the U.S. District Court Grand Jury include:
- Marqus Jamal Flanders, 37, of Brunswick, charged with Possession with Intent to Distribute Crack Cocaine, Methamphetamine, Fentanyl, and MDMA; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Jonathan Duncan, 38, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Jaques B. Pope, 31, of Savannah, charged with Possession of a Firearm by a Convicted Felon; and,
- Chester Morgan, 53, of Savannah, charged with Possession of a Firarm by a Convicted Felon.
Defendants recently adjudicated on federal firearms charges include:
- Marshall Lee Cushman, 39, of Augusta, was sentenced to 180 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. A Georgia Bureau of Investigation agent retrieved a rifle from an Avera, Ga., residence in September 2021, and Cushman admitted leaving the gun there. Cushman has multiple prior felony convictions.
- Taipai La’Don Brewer, 43, of Augusta, was sentenced to 37 months in prison and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Brewer in July 2022 after finding a pistol and drugs in his car during a traffic stop as part of the Operation Grace investigation of gang-related crimes in the Augusta area.
- Trevor Elijah Walker, 24, of Augusta, was sentenced to 36 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies were attempting to serve arrest warrants on Walker in November 2019 when he ran away, dropping a pistol as he fled.
- Terrance Webster Dunn, 32, of Augusta, was sentenced to 63 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Dunn was arrested in October 2022 when Richmond County Sheriff’s deputies investigated a report of a man riding a bike in a shopping center parking lot, taking photos of himself while holding a pistol and found Dunn with a pistol in his waistband. Dunn was on federal supervised release at the time of his arrest for a prior conviction for possession of a firearm by a convicted felon.
- Lear A. Williams, 33, of Savannah, was sentenced to 54 months in prison after pleading guilty to Possession of a Firearm and Ammunition by a Convicted Felon. Savannah Police officers in September 2022 were investigating reports of a man selling drugs when they found a pistol and ammunition in Williams’ possession.
- Carl Williams, 52, of Savannah, was sentenced to 31 months in prison and fined $4,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Investigators from the Department of the Army Criminal Investigation Division searched Williams’ residence as part of an investigation into stolen military equipment and found three semiautomatic pistols in Williams’ possession. Williams previously pled guilty and was sentenced in U.S. District Court in Connecticut on a felony charge of Conspiracy to Traffic in Stolen Government Property for receiving and reselling gun sights and night-vision equipment stolen from the U.S. Navy.
- Devonte Malik Jorame, 25, of Aiken, S.C., was sentenced to 28 months in prison followed by three years of supervised release and 40 hours of community service after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Jorame in June 2022 after finding a pistol in his vehicle during a traffic stop as part of Operation Grace. Jorame has prior state criminal convictions for domestic violence and gun possession.
- James Travon Walker, 22, of Savannah, was sentenced to 40 months in prison after pleading guilty to Possession of a Stolen Firearm. Chatham County Police officers arrested Walker while responding to a report of a vehicle break-in and found a backpack belonging to Walker containing two pistols stolen from the vehicle.
- Donald D. Walker, 28, of Hinesville, Ga., was sentenced to 18 months in prison after pleading guilty to False Statement During Attempted Purchase of a Firearm. Walker denied being under indictment when he signed forms required for buying a gun at a Hinesville gun store. Walker’s criminal history includes convictions for assault and family violence.
- Kerry Akeem Milledge, 37, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Milledge was charged in March 2022 by Savannah Police after a traffic stop of a car in which officers found multiple firearms, drugs and cash in the vehicle. Milledge has multiple prior convictions involving guns and drugs. A passenger in the vehicle, Antron Ozier Charles, 19, of Pooler, Ga., was sentenced to five years’ probation after pleading guilty to Possession with Intent to Distribute Marijuana.
- Johnny Harris, 23, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. He was arrested in October 2022 by Savannah Police officers investigating reports of shots fired near Frazier Homes, and determined Harris possessed an assault-style pistol while fleeing the area. Harris previously was convicted of illegal gun possession.
- Danny Swinney, 29, of Buford, Ga., awaits sentencing after pleading guilty to False Statement During Purchase of Firearm. As described in court, Swinney acknowledged acting as a straw purchaser to buy five handguns and shotgun from a Camden County pawn shop. Those guns were recovered days later in New Jersey.
Agencies investigating these cases include the ATF, the FBI, the Georgia Bureau of Investigation, the Savannah Police Department, the Richmond County Sheriff’s Office, and the Georgia State Patrol.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Metairie Man Indicted for Drug and Weapons OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today the unsealing of a four-count indictment returned on July 20, 2023, against ROOSEVELT COCKHERAN, age 39 and a resident of Metairie, Louisiana. COCKHERAN is charged in Count One with conspiracy to possess with intent to distribute cocaine in violation Title 21, United States Code, Section 846, in Count Two with possession with intent to distribute cocaine in violation of Title 21, United States Code, 841(a)(1) & (b)(1)(C), in Count Three with Possession of a Firearm in Furtherance of Drug Trafficking Crime in violation of Title 18, United States Code, Section 924(c) and in Count Four with Felon in Possession of Firearm in violation of Title, 18 United States Code, Section 922(g)(1). The indictment also contains a sentencing enhancement provision which alleges two qualifying prior serious drug felonies.
As to Count One, COCKHERAN faces a term imprisonment of not less than 10 years and a maximum term of life, a fine of $8,000,000 and 8 years of supervised release; as to Count Two, he faces a maximum term of imprisonment of 20 years, a $1,000,000 fine, and three years of supervised release; as to Count Three, he faces a mandatory consecutive term of five years imprisonment up to life imprisonment, a $250,000 fine and three years of supervised release; and as to Count Four, he faces a maximum term of imprisonment of 15 years, a $250,000 fine and three years of supervised release . Each count also carries a mandatory special assessment of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Jefferson Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mark A. Miller is assigned the prosecution.
Member of Violent Chicago Street Gang Sentenced to 50 Years in Federal PrisonRead the Press Release
CHICAGO — A member of a violent Chicago street gang has been sentenced to 50 years in federal prison for participating in a criminal organization that murdered rivals and violently protected a drug-dealing operation on the West Side of Chicago.
As a member of the Wicked Town faction of the Traveling Vice Lords street gang, DAVID ARRINGTON murdered two people, shot and wounded two others, and served as the driver when fellow gang members murdered a man and attempted to murder another. Arrington, 33, of Chicago, pleaded guilty last year to a federal racketeering conspiracy charge. U.S. District Judge Thomas M. Durkin sentenced Arrington after a hearing Wednesday in federal court in Chicago.
Arrington was among 13 defendants convicted as part of a multi-year investigation into the gang’s criminal activities. The investigation resulted in the seizures of more than 45 firearms, approximately 1,000 rounds of ammunition, approximately 17 kilograms of cocaine, approximately seven kilograms of heroin, and approximately 100 grams of crack cocaine. The federal probe revealed that Wicked Town gang members engaged in numerous acts of violence, including Arrington’s two murders and at least 17 others, as well as numerous attempted murders, armed robberies, and assaults. Wicked Town members regularly promoted their violent enterprise on social media, where they taunted rivals and boasted about murders and other acts of violence.
The gang operated primarily in Chicago’s Austin neighborhood, where members maintained “trap houses” to store firearms and illegal narcotics, including cocaine and heroin.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Fred Waller, Interim Superintendent of the Chicago Police Department. Substantial assistance was provided by the FBI, IRS Criminal Investigation Division, Illinois State Police, U.S. Drug Enforcement Administration, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, and the Chicago High Intensity Drug Trafficking Area program (HIDTA). The government is represented by Assistant U.S. Attorneys John D. Mitchell, Jimmy L. Arce, Meghan C. Morrissey, and Beth E. Palmer.
This case is part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles 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 alleged criminal networks.
Mayfield Man Sentenced to 15 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
Paducah, KY – A Mayfield, Kentucky man was sentenced last week to 15 years in prison for possession with the intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Sheriff Ryan Norman of the McCracken County Sheriff’s Office, and Sheriff Jon Hayden of the Graves County Sheriff’s Office made the announcement.
According to court documents, on February 22, 2022, in Graves County, Kentucky, Deanthony L. Noonan, 37, possessed with the intent to distribute more than 500 grams of a methamphetamine mixture. Noonan was sentenced last week to 15 years in prison, followed by a 5-year term of supervised release, for possession with the intent to distribute more than 500 grams of a methamphetamine mixture. There is no parole in the federal system.
This case was investigated by the DEA Paducah post of duty, the McCracken County Sheriff’s Office, and the Graves County Sheriff’s Office.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Lower Brule Man Convicted of Voluntary ManslaughterRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a jury has convicted Joseph Thompson, Sr., age 32, of Lower Brule, South Dakota, of Voluntary Manslaughter following a three day jury trial in federal district court in Pierre, South Dakota. The verdict was returned on July 20, 2023.
The charges carry a maximum penalty of 15 years in custody and/or a $250,000 fine, three of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Thompson was indicted by a federal grand jury in May of 2023.
The conviction stems from an incident that occurred on March 25, 2023, in Lower Brule. Thompson was at the home of an acquaintance when he heard a disturbance outside the residence. Thompson left the residence, walked around the corner of the home and saw a man standing near the home. Thompson produced a knife and stabbed the man five times, piercing his heart. There was no indication that the other man was displaying a weapon when Thompson fatally stabbed him.
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 Bureeau of Indian Affairs - Office of Justice Service - Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
The defendant was remanded to the custody of the U.S. Marshals Service.
Los Lunas Man Sentenced to 2 Years for Federal Gun ChargeRead the Press Release
ALBUQERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Diego Fernandez was sentenced to 28 months in prison. Fernandez, 24, of Los Lunas, pled guilty in federal court on March 7, 2022, to being a felon in possession of a firearm and ammunition.
Fernandez was indicted by a federal grand jury on July 15, 2021. According to the plea agreement and other court records, on April 7, 2021, when the New Mexico State Police (NMSP) attempted to execute a traffic stop, Fernandez fled, driving recklessly and towards oncoming traffic. NMSP canceled the pursuit for safety reasons when Fernandez entered a residential neighborhood but continued to monitor his location from a helicopter. When Fernandez parked, officers from NMSP approached him again and were able to apprehend him after a short foot chase.
At the time of his arrest, Fernandez possessed a loaded firearm. As a convicted felon, Fernandez could not legally possess a firearm or ammunition.
Upon his release from prison, Fernandez will be subject to 3 years of supervised release.
The FBI’s Albuquerque Violent Crime and Gang Task Force (VCGTF) investigated this case with assistance from the New Mexico State Police. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
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Lexington Man Sentenced to 120 Months for Felon in Possession of Firearm ChargesRead the Press Release
LEXINGTON, KY- A Lexington, Ky., man, Erich Storck, 51, was sentenced by Chief U.S. District Judge Danny Reeves on Friday to 120 months in prison for two counts of felon in possession of a firearm.
Storck was convicted of the charges on April 5, 2023. According to evidence at his trial, Storck had multiple misdemeanor convictions and a felony conviction for Assault Under Extreme Emotional Disturbance. In May 2020, Storck was arrested after being found outside Northpoint Training Center, a medium-security state prison, under the influence of alcohol with a loaded handgun stored in his motorcycle. Storck was released on state bond. While on bond, in November 2021, Storck barricaded himself in his residence in Nicholasville where he discharged over 30 rounds from a 9mm and an assault rifle. Some of the rounds struck a neighbor’s house. After Storck eventually surrendered to law enforcement, officers located two firearms and hundreds of rounds of ammunition in his home.
Under federal law, Storck must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. Storck was also ordered to pay a $20,000 fine and $1,000 in restitution.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Todd Justice, Chief of Police, Nicholasville Police Department; and Sheriff Taylor Bottom, Boyle County Sheriff’s Department, jointly announced the sentence.
The investigation was conducted by ATF, Nicholasville Police Department, and Boyle County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Roger West.
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Lexington CEO Sentenced to 10 Months for Distributing Misbranded 3M N95 masksRead the Press Release
LEXINGTON, KY- Nathan Brown, 47, CEO of Old World Timber, a Lexington company specializing in antique wood reclamation, was sentenced by U.S. District Judge Karen Caldwell on Thursday to 10 months in prison for selling misbranded N95 respirator masks during the COVID-19 pandemic.
In the fall of 2020, during the COVID-19 pandemic, Brown directed his company to begin importing and selling medical-grade 3M™ N95 respirators (masks). Old World Timber purchased more than 100,000 alleged 3M N95 masks from a company in China, and resold them to customers throughout the United States. In his plea agreement, Brown acknowledged that by March 2021, information from multiple sources, including 3M’s COVID-19 Fraud and Counterfeit Product Response Team, alerted him to the high probability that the masks he imported from China were counterfeit. Brown deliberately ignored these concerns and directed his company to continue selling the masks, misleading customers as to their authenticity. Between March 3, 2021 and April 9, 2021, Brown caused OWT to sell 57,460 misbranded masks for a total of $129,353.
Under federal law, Brown must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for one year. Brown was also ordered to pay $129,353 in restitution.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; George A. Scavdis, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations Metro Washington Field Office; and James C. Harris, Special Agent in Charge, Homeland Security Investigations, Baltimore Field Division, jointly announced the sentence.
The investigation was conducted by the U.S. Food and Drug Administration and the U.S. Department of Homeland Security. The United States was represented by Assistant U.S. Attorney Will Moynahan.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Lawrence Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man has pleaded guilty in federal court in Boston to his role in a fentanyl trafficking conspiracy.
Eddy Reyes Tejada, 51 pleaded guilty on July 20, 2023 to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; one count of distribution and possession with intent to distribute 40 grams or more of fentanyl; and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for Oct. 19, 2023. Tejada was indicted by a federal grand jury in December 2022.
Between January and December 2022, Tejada conspired to distribute fentanyl in and around the Lawrence area. Specifically, on June 14, 2022, Tejada distributed 40 grams or more of fentanyl in Lawrence. On Sept. 6, 2022, Tejada distributed 400 grams or more of fentanyl in Lawrence.
The charges of conspiracy to distribute 400 grams or more of fentanyl and of distribution of 400 grams or more of fentanyl each provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution and/or possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance in the investigation was provided by the U.S. Postal Inspection Service and the Fitchburg and Lunenburg Police Departments. Assistant U.S. Attorney Alathea Porter of the Narcotics & Money Laundering Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Kenmore Teacher Indicted on Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury returned an indictment charging Anthony V. Giambrone, 40, of Kenmore, NY, with possession of child pornography involving prepubescent minors, which carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that according to the indictment, in April 2020, Giambrone, currently a teacher with Erie 1 BOCES working at Maryvale Intermediate School, possessed images of child pornography on two separate laptop computers. The images included prepubescent minors.
Giambrone made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Justice Department Files Complaint Against the State of Texas for Illegally Placing Floating Buoy Barrier in the Rio GrandeRead the Press Release
The Justice Department today filed a civil complaint against the State of Texas because the state has built a floating barrier, consisting of buoys strung together, in the Rio Grande River without the federal authorization that is legally required under the Rivers and Harbors Act. The complaint seeks to enjoin the building of the barrier and to require the state to remove it.
“We allege that Texas has flouted federal law by installing a barrier in the Rio Grande without obtaining the required federal authorization,” said Associate Attorney General Vanita Gupta. “This floating barrier poses threats to navigation and public safety and presents humanitarian concerns. Additionally, the presence of the floating barrier has prompted diplomatic protests by Mexico and risks damaging U.S. foreign policy.”
“The Rivers and Harbors Act is clear in prohibiting the placement of any unauthorized barriers or obstructions in the Rio Grande and other navigable waters of the United States,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We intend to seek the appropriate legal remedies, including the removal of such obstructions in the Rio Grande.”
“The Rio Grande is a significant stretch of the southern border of our country,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “We must all recognize that there are laws and policies in place – both domestic and international – to ensure the safety and security of everyone working, living and traveling along the river. These laws cannot be ignored, and my office will take and support the appropriate legal action to uphold them.”
The complaint alleges that, beginning earlier this month, Texas directed the placement of a floating barrier – buoys four to six feet in diameter strung together – in the Rio Grande, approximately two miles south of the Camino Real International Bridge in Eagle Pass, Texas. Governor Abbott has said the state may build more barriers as part of a broader effort called “Operation Lone Star,” which also includes placing concertina wire near the U.S.-Mexico border.
The complaint is lodged in U.S. District Court in the Western District of Texas.
The case is being litigated by the Environmental Defense Section of the Justice Department’s Environment and Natural Resources Division.
Inmate at FCI Berlin Indicted for Possessing a WeaponRead the Press Release
CONCORD – An inmate at FCI Berlin was indicted in connection with his possession of a homemade weapon within the prison, U.S. Attorney Jane E. Young announces.
Jawan Fernanders, 21, was indicted on one count of possession of contraband in prison. Fernanders will make an initial appearance in federal court on a later date.
According to the charging documents on May 6, 2023, Fernanders, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, possessed a prohibited object—namely, a homemade knife with a serrated blade.
The charge of possession of contraband in prison provides for a sentence of up to five years in prison, up to one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Federal Bureau of Investigation led the investigation. Valuable assistance was provided by FCI-Berlin’s Office of the Special Investigative Supervisor. Assistant U.S. Attorney Matthew T. Hunter is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – JUAN JOSE ARRIAGA-MORENO, a/k/a “Jaime Garcia Matamoros,” age 58, was indicted on July 21, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, JUAN JOSE ARRIAGA-MORENO, (“ARRIAGA-MORENO”) reentered the United States after being previously deported on November 9, 2018. If convicted, ARRIAGA-MORENO faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Hannibal Man Admits Making Pipe BombsRead the Press Release
ST. LOUIS – A man from Hannibal, Missouri on Monday admitted making a series of illegal pipe bombs in 2022.
Joshua Eugene Rickey, 34, pleaded guilty in U.S. District Court in St. Louis to one count of manufacture of one or more unregistered destructive devices and one count of possession of one or more unregistered destructive devices. He admitted making a series of pipe bombs out of sparklers and plastic or metal pipes between July 4, 2022 and Aug. 13, 2022. Rickey admitted detonating one in a burned-out house across from his own home in late July 2022. He also lit one at his grandmother’s house, damaging a fence.
Rickey is scheduled to be sentenced by U.S. District Judge John A. Ross on October 30. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine or both.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hannibal Police Department investigated the case. Assistant U.S. Attorney Nino Przulj is prosecuting the case.
Greene County Area Meth Traffickers SentencedRead the Press Release
GREENEVILLE, Tenn. – On July 24, 2023, Steven Shelton, 39, of Greeneville, Tennessee, was sentenced to 168 months’ imprisonment and Shannon Crittenden, 45, of Mosheim, Tennessee was sentenced to 120 months’ imprisonment by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court at Greeneville. Co-defendant Arthur Tidwell, 46, of Greeneville, was previously sentenced to 180 months in prison on June 26, 2023.
As part of the plea agreements filed with the court Shelton and Crittenden both pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine (actual), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. Tidwell plead guilty to possession with the intent to distribute 50 grams or more of methamphetamine (actual), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A).
According to court documents and evidence presented at sentencing, all three defendants were involved in distributing methamphetamine in and around the Greeneville area. Tidwell was traffic stopped in Washington County by the Tennessee Highway Patrol and caught with a significant quantity of methamphetamine, was released on bond, and was then arrested just over a month later in Greeneville with another large quantity of methamphetamine. Shelton and Crittenden sold methamphetamine to an individual working with law enforcement on five occasions, which led to a search warrant being executed at Shelton’s Greeneville residence where a large quantity of methamphetamine was found. The investigation revealed that Tidwell was supplying Shelton with methamphetamine, who was in turn supplying others, including Crittenden.
“The United States Attorney’s Office is committed to targeting the ongoing threat to our communities from drug traffickers who bring large quantities of high-purity methamphetamine into our communities,” said U.S. Attorney Francis M. Hamilton III. “We will continue to work with our law enforcement partners to ensure that those who seek to profit from flooding our communities with dangerous drugs will face justice.”
This sentencing was the culmination 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.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent convictions in this case, included the Third Judicial Drug Task Force, Greene County Sheriff’s Office, Tennessee Highway Patrol, Greeneville Police Department, Johnson City Police Department, Tennessee Bureau of Investigation, Drug Enforcement Administration, and Federal Bureau of Investigation. Numerous agencies from the Appalachia High Intensity Drug Trafficking Area (HIDTA) Task Force assisted in the investigation.
Assistant U.S. Attorney J. Christian Lampe represented the United States.
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Fresno Man with Four Prior Convictions for Unlawfully Possessing Firearms and Ammunition Sentenced to 4 Years in Prison for Illegal Possession of AmmunitionRead the Press Release
FRESNO, Calif. — Earnest Donte Ruff, 25, of Fresno, was sentenced to four years and three months in prison for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 21, 2021, Ruff was arrested and found to be in possession of a loaded .40‑caliber gun with no serial number. At the time, Ruff was out on bond pending sentencing in a case in which he had pleaded guilty to participating in a shooting on “the Strip” in Las Vegas. When Ruff possessed the firearm in this case, he was also on community supervision for illegally possessing another firearm in Fresno in 2019. This conviction is Ruff’s fifth conviction for illegally possessing firearms or ammunition.
This case was the product of an investigation by the Federal Bureau of Investigation and the Multi-Agency Gang Enforcement Consortium. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the 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.
Former Political Staffer Sentenced to Eight Months’ Home Confinement, Three Years’ Probation, for Role in Scheme to Defraud Campaigns and Political Action CommitteesRead the Press Release
NEWARK, N.J. – A Union County man who previously served as a staff member in the New Jersey Senate was sentenced today to eight months of home confinement and three years of probation for his role in a conspiracy to falsely inflate the invoices that a political consultant submitted to various campaigns, political action committees, and IRS 501(c)(4) organizations, U.S. Attorney Philip R. Sellinger announced.
Antonio Teixeira, 44, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2014 to 2018, Teixeira conspired with Sean Caddle, and Caddle’s political consulting firms, to defraud various campaigns, political action committees, and 501(c)(4) organizations. Teixeira then failed to report this illicit income on tax forms that he filed with the IRS during those same years.
Caddle was hired by a former New Jersey state senator to create the PACs and 501(c)(4)s so that they could raise and spend money to advocate on a variety of issues, including supporting particular candidates in local races around New Jersey. Teixeira served as the senator’s chief of staff and wielded influence over the consultants that the campaigns and organizations hired and the budgets that each of these organizations would receive.
Teixeira and Caddle conspired to falsely inflate the invoices that Caddle’s consulting firms submitted to the campaigns, PACs and 501(c)(4)s with phony campaign-related expenditures. Caddle and Teixeira were fraudulently padding the invoices because they agreed to split the difference between Caddle’s actual campaign expenditures and the overage charged to the organizations. Caddle paid a portion of Teixeira’s share to him in cash and funneled the remainder to Teixeira via checks made to out to Teixeira’s relatives in order to conceal that campaign money was being kicked back to Teixeira. In total, Teixeira received more than $100,000. Although Teixeira pocketed these fraudulent proceeds and used the money for personal expenses, he never reported the money on the tax forms that he filed with the IRS during the course of the scheme.
In addition to the prison term, Judge Vazquez ordered Teixeira to pay restitution.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s sentencing.
The government is represented by Executive Assistant U.S. Attorney Lee M. Cortes Jr., Sean Farrell, Chief, New York Office, Department of Justice, Antitrust Division.
Former Louisiana Resident Pleads Guilty to Cares Act Fraud and Sentenced to ProbationRead the Press Release
NEW ORLEANS – BRANDI WEBER, age 28, formerly of New Orleans, LA and now residing in California, pleaded guilty to one-count of making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), announced U.S. Attorney Duane A. Evans. WEBER was sentenced by U.S. District Judge Wendy Vitter to two (2) years’ probation. In addition, WEBER was ordered to pay $29,177.50 in restitution to the SBA and a $100 mandatory special assessment fee.
On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
According to court documents, WEBER made false statements to an approved lender on or about April 2, 2021, for the purpose of fraudulently obtaining a PPP loan. WEBER falsely stated in her PPP application that she was a self-employed esthetician impacted by the pandemic when, in truth, she had no such business in 2020.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the Amtrak Office of Inspector General – Criminal Investigations in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Felon Accused of Robbing Pizza Delivery Driver in St. LouisRead the Press Release
ST. LOUIS – A convicted felon has been arrested on an indictment alleging he robbed a pizza delivery driver in St. Louis at gunpoint, U.S. Attorney Sayler A. Fleming announced Monday.
Antione L. Shockley, 25, was indicted in U.S. District Court July 19 on three charges: brandishing a firearm in furtherance of a crime of violence, robbery and possession of a firearm as a convicted felon. The indictment alleges that Shockley, a convicted felon, committed the robbery April 13 in St. Louis.
A motion seeking to have Shockley held in jail until trial says a Domino’s driver was sent to a vacant home in the Central West End neighborhood of St. Louis and was robbed at gunpoint of two pizzas, hot wings and the insulated bag containing them. Investigators traced the order to Shockley’s email address and traced the phone used to make the order to Shockley and his then-girlfriend.
The detention motion says St. Louis Metropolitan Police Department officers arrested Shockley June 24 after he fired a handgun into the air in a school zone. After officers arrived and told Shockley to put up his hands, he passed the handgun he was holding to a woman and first pulled a stolen Ruger from his waistband before pulling a long gun from inside his pants. He was arrested after dropping both of the firearms, the motion says.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Zachary Bluestone is prosecuting the case.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Federal Prison Employee Charged with Accepting Payments from High-Net-Worth InmateRead the Press Release
BOSTON – A Correctional Counselor for the Bureau of Prisons (BOP) assigned to Federal Medical Center Devens (FMC Devens) in Massachusetts has been charged with accepting payments from an inmate under his care, in violation of his duties as a public official. The defendant is also charged with lying to a bank about a loan he received from the inmate’s business associate and forging the associate’s signature to support this false claim.
William S. Tidwell, 49, of Keene, N.H., was charged by Information in federal court in Boston with receipt of payments by a public official in violation of his official duties, making false statements to a bank and identity theft. Tidwell will appear in federal court in Boston at a later date.
According to the charging documents, Tidwell has been employed by the BOP since 2000 and has been working at FMC Devens since 2008. According to BOP’s rules and policies that govern the duties and conduct of its employees, employees may not receive any payments, gifts, or personal favors from inmates, give preferential treatment to any inmate in the performance of their duties, or engage in outside employment that conflicts with their duties.
In approximately 2014, Tidwell began working as a Correctional Counselor at FMC Devens, a position that give him significant levels of contact with, and authority over, inmates. Among other things, Tidwell was responsible for monitoring inmate work assignments, assigning inmate housing assignments, arranging inmate legal calls and coordinating prison visits for inmates. One of the inmates for whom Tidwell served as a Correctional Counselor was Individual 1 – an ultra-high net worth individual who had been convicted on federal charges in another jurisdiction. It is alleged that, starting in approximately 2018, Individual 1 caused a stream of benefits to be paid to Tidwell.
In November 2018, Tidwell supervised Individual 1, who allegedly directed a close friend and business associate (Individual 2) to wire $25,000 to Tidwell’s close family member. Thereafter, starting in 2019, Tidwell and Individual 1 allegedly entered into an agreement pursuant to which Individual 1 would direct thousands of dollars to Tidwell as part of a property management agreement, which used Individual 2 as the conduit through which payments were made to Tidwell. In total, between 2019 and 2020, Tidwell allegedly received over $65,000 in benefits as part of this property management agreement with Individuals 1 and 2. Tidwell’s alleged receipt of payments and his employment relationship with an inmate or a close associate of an inmate violated his official duties as a BOP employee.
Separately, in 2020, it is alleged that Tidwell sought to purchase a home. In connection with seeking financing for the home purchase, Tidwell allegedly received a $50,000 loan from Individual 2. Tidwell also allegedly made multiple false statements to the bank in connection with his loan application, falsely telling the bank that the $50,000 was a gift from his employer. It is further alleged that when the bank asked for written proof of this purported gift, Tidwell forged documents to support his earlier claim, including by unlawfully using Individual 2’s name and address, and forging Individual 2’s signature.
“Corrections officers are placed in a position of public trust. The vast majority of corrections officers carry out their duties with integrity and professionalism. They know that accepting payments from an inmate – as is alleged against Mr. Tidwell here – is a serious violation of that trust and a betrayal of the BOP’s mission to care FOR federal inmates in a safe and impartial manner. This office is committed to holding public officials accountable when they exploit their power or official position to enrich themselves and compromise the public interest,” said Acting United States Attorney Joshua S. Levy.
“William Tidwell is alleged to have abused his authority and abandoned his duty after he befriended an inmate in his care and accepted tens of thousands of dollars from him,” said Christopher DiMenna. Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s arrest underscores the importance the criminal justice system places on policing its own. Make no mistake, the FBI will continue to work with our partners to root out public corruption wherever it may lie because it not only undermines the integrity of our government but is a violation of the public’s trust.”
“The safety and security of federal prisons depends on the integrity of Correctional Officers. By allegedly accepting tens of thousands of dollars from an inmate, Tidwell compromised his integrity and jeopardized the safety and security of the institution,” said Ryan T. Geach, Special Agent in Charge of the Department of Justice Office of the Inspector General New York Field Office.
The charge of receiving payments in violation of official duties provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of making false statements to a bank provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of up to $1 million. The charge of identity theft provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FBI Acting SAC DiMenna and DOJ-OIG SAC Geach made the announcement today. Valuable assistance in the investigation was provided by the Federal Bureau of Prisons. Assistant U.S. Attorneys Kunal Pasricha and Mark Grady of the Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts El Salvador Man for Conspiracy to Distribute Fentanyl and Possession with Intent to Distribute FentanylRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal jury has convicted Edwin Giovanni Salinas, age 44, of El Salvador, of Conspiracy to Distribute a Controlled Substance (Fentanyl) and Possession with Intent to Distribute a Controlled Substance (Fentanyl) following a three-day jury trial in federal district court in Aberdeen, South Dakota. The verdict was returned on July 19, 2023.
Each charge carries a mandatory minimum of 10 years and a maximum penalty of up to life in custody and/or a $10 million fine, five years to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Salinas was indicted by a federal grand jury in May of 2023.
On November 26, 2022, Salinas, along with his co-defendant, Berta Rosmelvi Gonzales, were pulled over during a traffic stop in northeast South Dakota. During a search of the vehicle, nearly 16 pounds of a mixture and substance containing fentanyl, a Schedule II controlled substance, was located. The search revealed 12 packages – two containing powder weighing over 3.5 pounds and 10 containing pills, totaling approximately 50,000. Gonzales entered a guilty plea to Conspiracy to Distribute a Controlled Substance on July 20, 2023.
This case was investigated by the Sisseton-Wahpeton Oyate Tribe Law Enforcement, the Roberts County Sheriff’s Department, and the Bureau of Indian Affairs Office of Justice Services Dangerous Drug Enforcement Unit.
Assistant U.S. Attorney Jeremy R. Jehangiri and Special Assistant U.S. Attorney Paige Petersen prosecuted the case.
A presentence investigation was ordered and a sentencing date has been set for October 23, 2023. The defendant was remanded to the custody of the U.S. Marshals Service.