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5 September 2023
Lantry Woman Sentenced for LarcenyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Lantry, South Dakota, woman convicted of Larceny. The sentencing took place on September 1, 2023.
Trude Clown, age 47, was sentenced to all time served through October 11, 2023, equal to approximately one-and-a-half months in federal prison, followed by three years of supervised release. She was further ordered to pay restitution of $20,143.61 and a $100 special assessment to the Federal Crime Victims Fund.
Clown was indicted for Larceny by a federal grand jury in August of 2022. She pleaded guilty on May 31, 2023.
The conviction stemmed from Clown purchasing a variety of goods and services between February 1, 2022, and June 1, 2022, with information she obtained from the victim’s bank card. Clown used this information to make numerous unauthorized purchases online and from businesses located on the Cheyenne River Sioux Tribe Indian Reservation.
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 Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Clown was immediately remanded to the custody of the U.S. Marshals Service.
Kunia Woman Arraigned on Scheme to Defraud Pandemic Unemployment Assistance RecipientsRead the Press Release
HONOLULU – On September 5, 2023, Oseola Vakameilalo, 54, of Kunia, Hawaii was arraigned in federal court and pled not guilty to all 12 charges in an indictment relating to fraud in connection with the Pandemic Unemployment Assistance (PUA) unemployment insurance program. Federal law enforcement arrested Vakameilalo on September 5, 2023, after a federal grand jury had returned the indictment on August 24, 2023. Trial was set for October 31, 2023, before Senior District Judge Susan Oki Mollway. Vakameilalo was ordered released on pretrial conditions.
According to the indictment, Vakameilalo is charged with wire fraud in connection with a scheme to defraud Hawaii residents of PUA unemployment benefit payments to which they were qualified to receive. In 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act Congress created the PUA program to provide emergency unemployment payments to certain workers whose livelihoods were impacted adversely by the COVID-19 pandemic, but who were ineligible for traditional state unemployment insurance benefits.
The indictment alleges that Vakameilalo purported to assist individuals with filing claims for PUA unemployment benefit payments. Among other things, she created profiles for them on the Hawaii Department of Industrial and Labor Relations (DLIR) website using their personal information, including social security number and date of birth, as well as their bank account information to receive direct deposits of benefit payments. The indictment further alleges that, for each individual claimant, Vakameilalo then logged onto the Hawaii DLIR website with the username and password she had created for the claimant and submitted weekly certifications that the claimant remained eligible for benefit payments so that the claimant could obtain payments.
The indictment alleges that after the claimant had received a certain number of payments, Vakameilalo used the claimant’s log-in credentials to access the claimant’s DLIR account without the claimant’s knowledge and consent. While falsely purporting to be or to represent the claimant, Vakameilalo then changed the bank account she previously had designated to receive the PUA unemployment benefit payments from the claimant’s bank account to her own. The indictment alleges that Vakameilalo continued to use the claimant’s credentials regularly to log on to the claimant’s Hawaii DLIR account, without the claimant’s knowledge and consent, to submit the certifications required for the benefit payments to continue, knowing that the payments would be made to her own bank account and not the claimant’s. According to the indictment, Vakameilalo fraudulently obtained approximately $52,270 in PUA unemployment benefits that were intended for other individuals.
“These criminal acts were committed for personal gain and at the expense of people who needed and deserved financial assistance during a global pandemic.” said U.S. Attorney Clare E. Connors. “We will pursue criminal consequences for individuals who unlawfully take advantage of federal financial assistance programs created during times of widespread financial need.”
“Charged with investigating allegations of fraud against the U.S. Department of Labor’s unemployment insurance programs, including the Pandemic Unemployment Assistance program, the DOL-OIG is committed to working relentlessly to protect the integrity of these vital benefits,” said Quentin Heiden, Special Agent-in-Charge, Western Region, U.S. Department of Labor, Office of Inspector General. “We are grateful to the U.S. Attorney’s Office in the District of Hawaii, the Hawaii Department of Labor and Industrial Relations, the Hawaii Attorney General’s Office, the FBI, and our other federal partners for their strong partnership and collaboration on these types of investigations.”
“'This defendant took advantage of those families who came to her for assistance and instead diverted funds for her own personal gain," said FBI Special Agent in Charge Steven Merrill. "The FBI will ensure that cases like these will be investigated to the fullest extent of the law."
Vakameilalo is charged with ten counts of wire fraud and two counts of aggravated identity theft. Each of the wire fraud counts carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000. Each of the aggravated identity theft counts carries a sentence of two years in prison.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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) at 866-720-5721 or online at www.justice.gov/DisasterComplaintForm.
This case is being investigated by the U.S. Department of Labor, Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Gregg Paris Yates.
Kentucky Man Pleads Guilty to Advertising Child PornographyRead the Press Release
BOSTON – A Kentucky man pleaded guilty today in federal court in Boston to advertising child sexual abuse material (CSAM) on the dark web.
Scott Allison, 58, of Glasgow, Ky., pleaded guilty to one count of advertisement of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 11, 2024. Allison was initially charged by criminal complaint in November 2021 in the Western District of Kentucky, and subsequently indicted by a federal grand jury in Boston in December 2021.
In April 2021, Allison was identified advertising and posting links to CSAM, including images of boys as young as approximately two years old, via a website on the dark web for which he served as a moderator. Allison used at least two different usernames on various websites on the dark web. During a search of Allison’s home in November 2021, an external hard drive was located plugged into Allison’s computer in his bedroom and found to contain approximately 130,000 images and videos of CSAM. Allison also had the content or text of approximately 108,000 posts to child pornography websites saved on his computer. Additionally, a box containing boy’s underwear, diapers and condoms as well as a silicone mold of a boy’s buttocks with partial genitalia were also found during the search.
The charge of advertisement of child pornography provides for a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; Michael A. Bennett, United States Attorney for the Western District of Kentucky; and Rana Saoud, Special Agent in Charge of Homeland Security Investigations in Nashville made the announcement today. Assistant U.S. Attorneys J. Mackenzie Duane and Luke A. Goldworm of the Major Crimes Unit are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Justice Department Secures Agreement in Sexual Harassment Lawsuit Against Baltimore County Fire DepartmentRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Baltimore County, Maryland, for significant relief and compensation for victims of sexual harassment. The settlement resolves the department’s complaint alleging that the county, through the Baltimore County Fire Department (BCFD), violated Title VII by subjecting several female employees to a hostile work environment on the basis of their sex. Title VII is a federal statute that prohibits employment discrimination based on race, color, national origin, sex and religion and prohibits retaliation against employees for opposing discriminatory employment practices.
“Women deserve protection from sexual harassment and sex discrimination in the workplace, and this lawsuit and consent decree demonstrate the department’s commitment to that principle,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Like any other employer, fire departments must take prompt and appropriate actions to correct an ongoing hostile work environment. Addressing sexual harassment in the firefighting industry is critical to efforts to bring more women into a profession where they have faced historic rates of exclusion, marginalization and discrimination.”
According to the department’s complaint, filed today in the United States District Court for the District of Maryland, several female employees were subjected to a hostile work environment when a male coworker distributed nude and other inappropriate photographs of female BCFD employees to other coworkers, solicited such photographs from coworkers and posted the photos on a social media site. The complaint further alleges that BCFD failed to take prompt and appropriate actions to correct the ongoing hostile work environment. As alleged, BCFD failed to promptly and thoroughly investigate the harassment and failed to adequately communicate with the victims as the harassment came to light, perpetuating the hostile work environment that the female employees faced.
Under the terms of the consent decree, if approved by the court, BCFD will overhaul its process for investigating complaints of sexual harassment, provide periodic sexual harassment training to its employees and conduct a workplace climate survey to gather information to aid in efforts to keep the workplace free of harassment. The county will also pay $275,000 to compensate female employees that were harmed by the harassment.
“Every workplace should foster respect and dignity for all employees, period,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Our mission to protect civil rights extends to sexual harassment and employers should be on notice that we will vigorously enforce the laws. We are pleased that Baltimore County has agreed to take comprehensive steps to ensure that their employees feel safe, respected and valued at their workplace.”
This case stems from a charge of discrimination by a commissioner for the Equal Employment Opportunity Commission (EEOC) and investigated by the EEOC’s Baltimore office. The EEOC investigated the charge and found reasonable cause to believe that BCFD violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charge to the Justice Department.
“Sexual harassment in the workplace too often goes uncorrected,” said Director Rosemarie Rhodes of the EEOC Baltimore Office. “Allowing such behavior to go unchecked when it affects one victim of sexual harassment is too much, let alone when it affects at least eleven victims. It’s critical to remind victims that sexual harassment is against the law, they do not have to tolerate it at work, and they are protected when they complain.”
Employees with complaints of sexual harassment can report them to their local EEOC office or their respective state or local fair employment practices agencies. The contact information for each local EEOC office can be found at www.eeoc.gov/field-office.
The case is being handled by Trial Attorneys Shan Shah and Sharion Scott of the of Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Sarah Marquardt for the District of Maryland.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation is available on its websites at www.justice.gov/crt/ and www.justice.gov/crt/employment-litigation-section.
Jackson County Woman Pleads Guilty to Wire FraudRead the Press Release
CHARLESTON, W.Va. Vickie Lynn Parsons, 47, of Ravenswood, pleaded guilty today to four counts of wire fraud. Parsons admitted to a scheme that defrauded an elderly individual in her care of approximately $31,000.
According to court documents and statements made in court, from on or about December 1, 2021, to on or about January 26, 2022, Parsons secretly gained access to the individual’s bank account information to fraudulently conduct numerous online transactions to pay for goods and services for herself and her friends. Parsons used the individual’s bank account to make numerous payments to an electric utility, Parsons’ credit card accounts, her wireless account, and another individual’s department store credit card.
Parsons is scheduled to be sentenced on December 4, 2023, and faces a maximum penalty of 80 years in prison, three years of supervised release, and a $1 million fine. Parsons also owes at least $31,000 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Jackson County Sheriff’s Office.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorneys Erik S. Goes and Julie M. White are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-73.
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Indictment Charges D.C. Man with Sexual Abuse and Exploitation of ChildrenRead the Press Release
WASHINGTON – Michael Humphrey, 41, of Washington, D.C., a registered sex offender, was indicted today in U.S. District Court on charges of sexual exploitation of a child, first degree child sexual abuse with aggravating circumstances, and transportation and possession of child pornography, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office’s Criminal and Cyber Division, and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
According to a previously filed criminal complaint, on July 3, 2023, Google LLC reported to the National Center for Missing and Exploited Children (NCMEC) that two Google accounts, later identified as Humphrey’s, uploaded child sexual abuse material (CSAM) to the Google LLC servers on May 16, 2020, May 17, 2020, August 30, 2020, September 22, 2020, December 1, 2020, and June 16, 2023. In total, Humphrey uploaded more than 40 files depicting the sexual abuse of children. Law enforcement obtained a warrant authorizing the search of Humphrey’s Google account. In his Google account, law enforcement discovered at least three videos that show Humphrey sexually abusing a young girl.
During the investigation, law enforcement learned that over the past several years, Humphrey has had unsupervised access to several children. Law enforcement is asking for assistance in identifying and locating additional victims of Humphrey’s abuse. If you have any information that may assist in this investigation, please contact the Metropolitan Police Department at 202-727-9099, or send an anonymous text to 50411.
Humphrey previously has been convicted on charges relating to the sexual abuse of children. On March 10, 2020, he was convicted of third-degree sex offense in the Circuit Court of Montgomery County, Maryland. As a result of this conviction, Humphrey was required to register as a Tier III Sex Offender. Following his release from custody, he failed to register as a Sex Offender, as required by law. On March 17, 2022, Humphrey was charged in Montgomery County for Failure to Register as a Sex Offender. He was subsequently found guilty of the offense.
Humphrey was ordered to register as a Tier III sex offender upon release for a March 10, 2020, conviction in Montgomery County, Maryland. On May 2, 2022, Humphrey registered as a sex offender in the District of Columbia as required by law.
Humphrey was arrested on August 11, 2023, and has been in custody ever since.
Sexual exploitation of a child carries a statutory mandatory minimum of 15 years, in prison. Because of his prior convictions, and his status as a registered sex offender, Humphrey could face a mandatory minimum of 35 years imprisonment if he is found guilty of this offense. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI’s Washington Field Office and the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorneys Rachel Forman and Amy Larson, of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Friant Man Sentenced to 10 Years for Trafficking Fentanyl that Caused an Overdose DeathRead the Press Release
FRESNO, Calif. — Bobby Hood, 65, of Friant, was sentenced today to 10 years in prison for possession with intent to distribute fentanyl and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in the summer of 2020 law enforcement learned that Mr. Hood was trafficking fentanyl and heroin. Just a few months later, on Christmas Day, a small amount of fentanyl powder that Mr. Hood distributed led to an overdose death. In that overdose investigation, investigators reviewed phone evidence that corroborated Mr. Hood’s sale of the lethal dose and other instances of his fentanyl dealing. All that information led to federal officers searching Hood, his car, and his residence. Those searches turned up a firearm, 508 grams of methamphetamine, 67 grams of fentanyl, and 1.75 ounces of heroin.
This case is the product of an investigation by FORT, a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, the Fresno Police Department, and the Clovis Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.), a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Former county attorney convicted of extorting money from defendant’s motherRead the Press Release
McALLEN, Texas – A 50-year-old man from Rio Grande City has pleaded guilty to extortion under color of law, announced U.S. Attorney Alamdar S. Hamdani.
Victor Canales was a Starr County attorney from 2005 to 2022. In that role, he was responsible for prosecuting misdemeanor crimes.
In September 2021, a woman reached out to Canales for assistance because her son had been charged with three misdemeanor offenses in Starr County. He said he could help her and that for $1500, he could take care of the Starr County tickets.
The mother gave Canales three money orders totaling $1500. He deposited the proceeds into his own checking account and used it for his own personal needs rather than depositing the monies into the Starr County account.
Canales then sent a series of letters to Cameron County indicating the three charges against the woman’s son would be dropped.
U.S. District Judge Ricardo Hinojosa accepted the plea and set sentencing for Dec. 15. At that time, Canales faces up to 20 years in prison and a possible $250,000 maximum fine.
Canales was permitted to remain on bond pending sentencing.
The FBI worked in partnership with the Texas Office of the Attorney General to conduct the Border Corruption Task Force investigation with the assistance of Organized Crime and Drug Enforcement Task Forces agencies including the Drug Enforcement Administration, Homeland Security Investigations, Texas Department of Public Safety - Criminal Investigations and Texas Rangers.
Assistant U.S. Attorney Pat Profit is prosecuting the case.
Former LASD Deputy Agrees to Plead Guilty to Depriving a Falsely Imprisoned Victim of His Civil Rights Under Color of LawRead the Press Release
LOS ANGELES – A former Los Angeles County Sheriff’s Department deputy has agreed to plead guilty to a federal felony offense for depriving a 23-year-old man of his civil rights in Compton in 2020, the Justice Department announced today.
In a plea agreement filed this morning in federal court, Miguel Angel Vega, 33, of Corona, admitted that he falsely imprisoned the victim; engaged in a vehicle pursuit with the victim still unlawfully detained in an LASD SUV, resulting in a traffic collision that injured the victim; and then filed false reports to cover up the deputy and his partner’s unlawful conduct.
Vega agreed to plead guilty to one count of deprivation of rights under color of law, a crime that carries a statutory maximum sentence of 10 years in federal prison. Vega is expected to formally plead guilty to the charge in the coming weeks.
According to the plea agreement, on the afternoon of April 13, 2020, Vega and his then partner, Christopher Blair Hernandez, 37, were in uniform and on patrol in an LASD vehicle near Wilson Park in Compton as part of their official duties at LASD.
Vega and Hernandez saw two young Black males, one of whom Vega believed was associated with a street gang, outside a skateboard park enclosed by a tall wrought-iron fence within Wilson Park. Vega and Hernandez got out of the SUV, approached the individuals, and ordered them to lift their shirts to search for firearms, which the individuals did not possess.
At this point, from inside the enclosed skatepark, the victim – who is identified in court documents as “J.A.” – began yelling at Vega and Hernandez to leave the Black males alone. J.A. did not threaten Vega or Hernandez or any of the other approximately 10 to 15 people inside the skatepark, who likewise did not pose any danger to Vega or Hernandez. Vega began yelling back at J.A., and while they continued exchanging words, Vega challenged J.A. to a fight, according to the plea agreement.
Shortly thereafter, Vega directed J.A. to come to an opening in the skatepark fence. Vega then grabbed J.A. and confined him in the back of the SUV as Hernandez looked on. Vega detained J.A. in the SUV because Vega was angry that J.A. had told Vega and Hernandez to leave the Black males alone and wanted to teach J.A. a lesson, according to the plea agreement. Although Vega and Hernandez had ample time to do so, J.A. was not handcuffed, his seatbelt was not secured, he never was told he was under arrest, nor was he informed of his rights at any time – all of this in violation of LASD policy. Throughout the ongoing false imprisonment, Vega knew that he and Hernandez did not have any lawful basis to detain J.A., the plea agreement states.
After leaving the park, Vega, who was still driving the SUV with Hernandez in the front passenger seat and J.A. confined in the backseat, continued to taunt and threaten J.A., including telling J.A. that the deputies were going to drop off J.A. in gang territory where J.A. would receive a beating.
According to the plea agreement, while in the vehicle, Vega and Hernandez ignored J.A.’s multiple questions as to why he was being detained. Vega decided to concoct a story that he and Hernandez were arresting J.A. for being under the influence of a stimulant as a pretext to justify their false imprisonment of J.A. To that end, Vega asked J.A. if he was taking any medications to signal to Hernandez that the deputies were going to fabricate and falsely allege that J.A. exhibited symptoms of being under the influence of a stimulant. In fact, Vega did not believe that J.A. was under the influence of a stimulant, and because this purported basis for the false detention and arrest was fabricated, Vega and Hernandez never took any steps to determine whether J.A. actually exhibited any signs of being under the influence of a controlled substance.
While Vega and Hernandez continued driving with J.A. still confined in the back of the SUV, Vega saw a group of young males on bicycles, including one Vega believed had a look of surprise and fear on his face upon encountering the LASD deputies. Believing the young male may possess a firearm, Vega stopped the SUV to let Hernandez get out of the vehicle and proceed on foot, and Vega began pursuing the bicyclist down an alley. As Vega drove the SUV down the alley in pursuit, Vega crashed into a wall and another vehicle, causing J.A. to hit his head and sustain a cut above his right eye that later required stitches, the plea agreement states. Following the collision, Vega removed J.A. from the patrol vehicle and told him to leave. Hernandez responded on foot to the alley shortly thereafter, and Vega told his partner that he had released J.A. Soon after, J.A. walked out of the alley and tried to get help from strangers at a nearby house, court documents state.
After the traffic collision, Vega reported over LASD radio that a person purportedly with a gun had fled through an alley, which prompted numerous LASD personnel to respond to the scene to set up a containment zone. Even though Vega also reported the traffic collision over LASD radio, neither Vega during the radio calls, nor Vega or Hernandez during a subsequent conversation with their supervising sergeant at the scene, initially disclosed that they had detained J.A. at the skatepark or that J.A. had been in the SUV during the collision in the alley.
It was only after Vega learned that J.A. had been independently detained on a neighboring street by another LASD deputy as the purported gun suspect that Vega informed the other deputies and his supervising sergeant that J.A. had been in the SUV during the crash. When asked by the supervising sergeant why J.A. had been in the SUV at the time of the collision, Vega falsely told the sergeant that J.A. had been detained for being under the influence of a controlled substance. While J.A. was at a hospital later in the day to receive treatment for the injuries he sustained from the collision, Hernandez spoke with another deputy who had escorted J.A. to the hospital. Consistent with the plan concocted by Vega earlier in the day to fabricate a false basis for J.A.’s detention and arrest, Hernandez directed the deputy at the hospital to issue J.A. a citation for being under the influence of methamphetamine, even though Hernandez and Vega knew that this accusation was false, according to the plea agreement. The deputy followed Hernandez’s direction and issued the citation.
Vega and Hernandez later authored two incident reports regarding the day’s events. They intentionally included false, misleading, and ambiguous information in the reports to justify, legitimize, and ultimately cover up their unlawful conduct, Vega admitted in the plea agreement. The first report falsely stated that J.A. appeared to be under the influence of a stimulant; that J.A. had threatened to harm people in the skatepark, as well as Vega and Hernandez; that a crowd of people were moving toward the LASD patrol vehicle as the defendants drove away after unlawfully detaining J.A; and that, following the crash in the alley, Vega checked J.A. for injuries and J.A. was placed in another patrol vehicle of an assisting LASD unit until paramedics arrived. The second report likewise falsely stated that Vega transferred J.A. to another patrol vehicle after the collision, which both Vega and Hernandez knew to be false.
Hernandez pleaded guilty on July 24 to one count of conspiracy pursuant to a cooperation plea agreement. His sentencing hearing is scheduled for January 8, 2024, at which time he will face a statutory maximum sentence of five years in federal prison.
The FBI is conducting the investigation into this matter. The LASD’s Internal Criminal Investigations Bureau and Internal Affairs Bureau provided substantial assistance.
Assistant United States Attorneys J. Jamari Buxton and Brian R. Faerstein of the Public Corruption and Civil Rights Section are prosecuting this case.
Former Finance Director at two non-profits sentenced to 41 months in prison for embezzling over $3 millionRead the Press Release
Seattle – The former Finance Director at two Seattle area non-profits was sentenced today in U.S. District Court in Seattle to 41 months in prison for embezzling more than $3 million from her employers, announced Acting U.S. Attorney Tessa M. Gorman. Susana Tantico, 63, of Renton, Washington committed the embezzlement over an eleven-year period. At the sentencing hearing, U.S. District Judge James L. Robart said, he could not understand how Tantico went from defrauding one non-profit to another, especially since the first provided medical care to immigrant communities. “You were leaving people who are sick today without the money to treat them,” Judge Robart told Tantico.
“Ms. Tantico chose to victimize non-profit organizations, whose work is critical to our community: one employer provided medical care to those who cannot afford it; the other works to assist youth in the criminal justice system,” said Acting U.S. Attorney Gorman. “But over 11 years, knowing she was putting critical services at risk, she stole millions to finance her mortgage, pay for her vacations, and finance her gambling losses.”
According to records filed in the case, in 1999 Tantico began working for a non-profit that provides healthcare to underserved populations. Ultimately, Tantico became the non-profit’s Finance Director. Between 2011 and June 2020, Tantico secretly embezzled millions of dollars from the healthcare organization. Bank records are available only for the period beginning in December 2016. Between December 2016 and 2020, Tantico stole nearly $2.3 million from the healthcare non-profit. She used the non-profit’s debit and credit cards to withdraw $1.6 million at casinos for gambling. She also used the debit and credit cards to pay for personal vacations, such as a $26,000 family trip to Florida, and trips to Las Vegas and San Diego. Tantico also used the healthcare non-profit’s debit and credit cards for more than $83,000 worth of purchases at Nordstrom, and $40,000 worth of purchases at Apple stores.
After running up these expenses, Tantico used the non-profit’s funds to pay the credit card bills and disguised the payments as legitimate expenses. For example, she categorized expenses for one vacation as “pharmacy supplies” in the accounting system. Throughout this timeframe, Tantico told the non-profit auditors that she was aware of no fraud at the non-profit.
In 2020, Tantico went to work as Finance Director for a different non-profit -- one with a focus on criminal justice issues. Tantico used more than $485,000 of the non-profit’s funds for gambling at casinos. She transferred $21,000 from the non-profit to her mortgage servicer to pay her home mortgage. She also transferred money to her personal bank account. Tantico then altered the bank records to hide the embezzlement.
At one point, Tantico was questioned by one of the organization’s banks about the pattern of withdrawals at casinos. She claimed that the non-profit held youth programs at the casinos, and that the withdrawals were for cash prize giveaways. In all, Tantico stole nearly $893,000 from the non-profit. The non-profit has incurred $132,000 in costs to forensically audit its books, fix its accounting procedures and records, and reply to vendors.
In court today, Dominique Davis spoke about the impact of the embezzlement on his organization, Community Passageways. “This was rough, this betrayal of trust. It almost ruined our whole organization. We barely survived this. We were made out to be villains,” Davis told the court.
In recommending a 41-month sentence, Assistant United States Attorney Seth Wilkinson noted, “Tantico abused positions of trust. Tantico was hired (twice) to safeguard the finances of her employers, and they trusted her to manage the funds with integrity. Instead, Tantico not only stole the money, but used her position to hide her theft. She created phony accounting entries that made her expenditures look like business expenses. She doctored bank statements. She lied to auditors. And she showed extreme duplicity by developing financial policies prohibiting the personal use of corporate credit cards, while knowing she was stealing millions of dollars by doing exactly that.” Tantico’s theft averaged about $550,000 per year between 2016 and 2022.
In court today, Tantico said “I am truly sorry… They were my work family…. It’s like I was two separate people…. I always meant to fix it.”
Following prison, Tantico will be on three years of supervised release. She has a restitution obligation of $3,121,572. She provided the court with a $60,000 check today from the sale of her home.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Federal Jury Convicts Vestavia Man on Child Pornography ChargesRead the Press Release
BIRMINGHAM, Ala. – Last week, Eugene Douglas Reid, III, 48, of Vestavia, was convicted of distribution and transportation of child pornography, following a three-day jury trial before U.S. District Court Judge R. David Proctor. U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples made the announcement.
In 2020, FBI Milwaukee, in collaboration with the Winnebago County Sheriff's Office, was investigating numerous groups of individuals engaged in the receipt, possession, distribution and possible production of child sexual abuse material through a proactive operation. As part of the FBI’s Operation, online covert employees documented these illegal activities and forwarded the documentation for further investigation to the appropriate FBI field office. The evidence at trial established that Reid had distributed and transported numerous videos and images of child sexual abuse material on the Kik messaging application in various private groups during the first half of 2020.
The maximum penalty for distribution of child pornography and transportation of child pornography is 20 years in prison, and a term of post-imprisonment supervised release of at least 5 years up to life.
The FBI Birmingham's Child Exploitation Human Trafficking Task Force investigated the case with the assistance of FBI Milwaukee Division, Winnebago County Sheriff’s Office, Vestavia Hills Police Department, Jefferson County Sheriff’s Office, and the Alabama Law Enforcement Agency. Assistant U.S. Attorneys Kristen S. Osborne and R. Leann White are prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. 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, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Escapee Sentenced for Leading $4.1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Trevor Scott Sparks, a Kansas City, Missouri, federal defendant who escaped after trial and was recaptured, was sentenced in federal district court today for his role in leading a $4.1 million heavily armed drug-trafficking conspiracy, and directing two kidnappings, both resulting in murders, and numerous assaults. The drug trafficking organization (DTO) Sparks led distributed approximately 400 kilograms of methamphetamine in the Kansas City and St. Louis metropolitan areas in 2017 and 2018.
Sparks, 34, was sentenced by U.S. District Judge Greg Kays to life imprisonment, plus 60 months consecutive, in federal prison without parole on the drug, money, and gun charges, all consecutive to 33 months for the escape. The court also ordered Sparks to pay a money judgment of $400,000.00, which represents the profits he received from the drug-trafficking conspiracy. That forfeiture amount is based on the unlawful distribution of approximately 100 kilograms of methamphetamine, based on an average street sale price of $7,500.00 per kilogram, and an average cost to the DTO of $3,500.00 a kilogram. Sparks and the co-conspirators he supplied are believed to have distributed approximately 400 kilograms of methamphetamine in less than 2 years.
On November 7th, 2022, Sparks was found guilty by a jury of all counts presented during the weeklong trial. The charges included participating in conspiracies to distribute methamphetamine and launder drug proceeds from January 1, 2017, to December 18, 2018, possessing firearms in relation to that drug-trafficking crime, and to being a felon in possession of firearms and ammunition. Sparks and several of his co-conspirators were arrested out of a residence on Smart Avenue in the Northeast area of Kansas City, Missouri, on December 18, 2018. Located in that residence were numerous firearms, cocaine, methamphetamine, marijuana, United States currency, drug ledgers, and other indicia of drug trafficking. This is the same residence where at least two of the DTO related assaults occurred.
While no one was charged with nor convicted at trial of it, members of the Sparks DTO were found responsible at sentencing by the Court for two murders. In early August 2018, James “Old School” Hampton was seized in St. Louis by members of the Sparks DTO at the direction of Sparks. Hampton was seized because the drug conspiracy was convinced Hampton could help find the drugs and money stolen by co-conspirator David Richards. When they realized Hampton could not or would not help, Hampton was restrained, beaten, and tortured. Hampton was then kidnapped and transported from St. Louis to Kansas City in the trunk of his own car. Brittanie Broyles, who was with Hampton and witnessed him being beaten, tortured, restrained, and kidnapped, was also kidnapped and taken to Kansas City. Once in Kansas City, Hampton was left in the trunk of his car and he and his car were secreted in a co-conspirator’s garage near the Smart residence. Broyles managed to obtain control of another co-conspirator’s cellular telephone and surreptitiously send text messages to friends and family in St. Louis about her and “Old School’s” plight. Once that was discovered by the DTO, Sparks directed the DTO to move from one hotel to another, thereby thwarting efforts to locate Broyles. Her friends and family and law enforcement were unable to locate her before she was murdered by members of the Sparks DTO.
On August 6, 2018, Hampton’s car and body were discovered burning in Bates City, Missouri. This was after members of the DTO retrieved Hampton’s car (and body) from the secreted location and Sparks directed them to take it and burn it because of the odor emanating from the vehicle and to destroy the evidence and Hampton’s body. Witnesses and video identified Co-Defendant Gerald Lee Ginnings of Grandview, Missouri, being followed by Co-Defendant Markus Michael A. Patterson, of Kansas City, Missouri, in another co-conspirator’s car, as Ginnings drove Hampton’s car with his body in the trunk to Bates City, Missouri, where it was found by the Sni Valley Fire Department fully engulfed. Once they extinguished the flames, Hampton’s desecrated body was found in what was left of the trunk. Sparks forgave a drug debt of Ginnings for this duty.
On August 8, 2018, Broyles’s body was recovered near the Super Flea in the Northeast area of Kansas City, Missouri. She had been murdered by two gunshots to her head. While not charged nor convicted of it, the Court at sentencing found that witnesses and evidence implicated Sparks in ordering her killing because of what she knew about Hampton. Ginnings and Patterson were likewise implicated as the two responsible for this murder. Ginnings was sentenced August 25, 2023, to 520 months in federal prison on similar charges to Sparks. Co-Defendant Patterson was sentenced August 17, 2023, to 560 months on the same charges.
Under federal law, it is illegal for anyone involved in drug trafficking to possesses firearms related to that trafficking and it is also illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sparks has prior felony convictions for robbery, drug offenses, and assault.
Sparks was the main defendant over two indictments with 32 co-defendants, all who have pleaded guilty and been sentenced in those two cases.
On December 6, 2022, Sparks and fellow federal inmate Sergio Perez-Martinez escaped the Cass County jail where they were being held for sentencing in their respective federal cases. On December 30, 2022, Sparks was apprehended in the Northeast area of Kansas City, Missouri. Also charged in that escape case was Perez-Martinez (still at large), Sparks’ mother and stepfather, and another man, who was the co-conspirator that stored the car with Hampton in it. Sparks was also sentenced today for that escape to which he pled guilty on June 28, 2023.
These cases were prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Robert M. Smith. They were investigated by the Kansas City, Mo., Police Department, the Sni Valley Fire Department, the Jackson, Lafayette, Buchanan, Phelps, and Cass County, Mo., Sheriff’s Departments, the FBI, the Jackson County Drug Task Force, the Missouri State Highway Patrol, and the St. James, Mo., Police Department.
Eagle River Man Pleads Guilty to Child Pornography, Sexual Abuse of a MinorRead the Press Release
ANCHORAGE, Alaska – An Eagle River man pleaded guilty today to one count sexual exploitation of a child for production of child pornography and one count possession of child pornography.
According to court documents, Michael V. Ross, 32, coerced a minor to engage in sexually explicit conduct and documented some of the abuse through pictures and videos kept on his cell phone. It is alleged that the abuse occurred between March 2017 and August 2021, sometimes occurring weekly.
The defendant faces a mandatory minimum of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The FBI Anchorage Field Office and Anchorage Police Department investigated the case.
Assistant U.S. Attorney Seth Brickey and Adam Alexander are prosecuting the case.
Duvall, Washington, man awaiting sentencing for possessing images of child sexual abuse, pleads guilty to contacting minor online for illegal imagesRead the Press Release
Seattle – A Duvall, Washington, man who was given a time-served sentence for possessing images of child sexual abuse, pleaded guilty today to a new crime, committed while he was awaiting the earlier sentencing, announced Acting U.S. Attorney Tessa M. Gorman. Steven Michael Burke, 37, will be sentenced for Attempted Enticement of a Minor on December 8, 2023. Both the defense and prosecution will recommend a ten-year sentence. U.S. District Judge Ricardo S. Martinez is not bound by the recommendation and can impose any sentencing allowed by law.
According to the plea agreement, while he was awaiting sentencing for possessing images of child sexual abuse, Burke reached out to an 11-year-old child via an internet program asking the child to send sexually explicit images. Burke also sent the child such images. The crime was discovered after Burke was sentenced for the earlier criminal conduct.
Attempted Enticement of a Minor is punishable by a mandatory minimum ten years in prison and up to life in prison.
Burke has been in custody since his arrest on May 4, 2023.
The case was investigated by the Department of Homeland Security Investigations
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson and Special Assistant United States Attorney Laura Harmon.
Cooperating Federal Contractor Resolves Liability for Alleged False Claims Caused by Failure to Fully Implement Cybersecurity ControlsRead the Press Release
Verizon Business Network Services LLC, of Ashburn, Virginia, has agreed to pay $4,091,317 to resolve False Claims Act allegations that it failed to completely satisfy certain cybersecurity controls in connection with an information technology service provided to federal agencies. In connection with the settlement, the United States acknowledged that Verizon took a number of significant steps entitling it to credit for cooperating with the government.
“When government contractors fail to follow required cybersecurity standards, they may jeopardize the security of sensitive government information and information systems,” said Deputy Assistant Attorney General Michael Granston of the Civil Division’s Commercial Litigation Branch. “We will continue to pursue knowing cybersecurity related violations under the Department’s Civil Cyber-Fraud Initiative and to provide credit in settlements to government contractors that disclose misconduct, cooperate with pending investigations and take remedial measures, all of which are critically important to protecting the nation against cyber threats.”
This settlement relates to Verizon’s Managed Trusted Internet Protocol Service (MTIPS), which is designed to provide federal agencies with secure connections to the public internet and other external networks. The settlement resolves allegations that Verizon’s MTIPS solution did not completely satisfy three required cybersecurity controls for Trusted Internet Connections with respect to General Services Administration (GSA) contracts from 2017 to 2021. After learning of the issues, Verizon provided the government with a written self-disclosure, initiated an independent investigation and compliance review of the issues and provided the government with multiple detailed supplemental written disclosures. Verizon cooperated with the government’s investigation of the issues and took prompt and substantial remedial measures.
“The United States should get the cybersecurity controls that it contracts and pays for to safeguard against cyber threats that could compromise critical information and systems,” said Acting Inspector General Robert C. Erickson of the GSA. “I appreciate the efforts of the investigative team that worked on this case.”
On Oct. 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the GSA’s Office of Inspector General. The matter was handled by Fraud Section Senior Trial Counsel Christopher Terranova.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
SettlementColumbus Woman Sentenced to Ten Years in Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
COLUMBUS, Ga. –A Columbus, Georgia, resident who admitted to possessing photos and videos of children being sexual abused was sentenced to serve ten years in federal prison for her crime.
Townes Ward Borum, 38, of Columbus, Georgia, was sentenced to serve 120 months in prison to be followed by ten years of supervised release by U.S. District Judge Clay Land today after she previously pleaded guilty to one count of possession of child pornography. Borum will also have to register as a sex offender for life upon her release from prison. Borum is not eligible for parole.
“This case serves as a harsh reminder of the length child predators will go to meet their needs at the cost of innocent and trusting lives,” said U.S. Attorney Peter D. Leary. “In collaboration with our law enforcement and community partners, we will seek justice on behalf of sexually exploited children and do everything within our power to hold predators accountable.”
“People like Borum, who sexually exploit children for monetary gain, do serious lasting harm and facilitate in the continued manufacturing and trading of child sexual abuse material,” said Rich Bilson, Supervisory Senior Resident Agent of FBI Atlanta’s Columbus office. “The FBI is committed to working with our partners to find such predators and lock them up so they can do no further harm.”
“This case shows how low predators will go to profit from innocent lives. Working with our law enforcement and prosecutorial partners, the GBI’s Child Exploitation and Computer Crimes Unit remains committed to diligently investigating individuals who exploit our children,” said GBI Director Chris Hosey.
According to facts presented at court, GBI was contacted by law enforcement in New Jersey on May 20, 2022, with information that an adult female in the Middle District of Georgia was distributing nude photos of a young child to a man in their jurisdiction. The initial Cybertip leading to the New Jersey man came from the National Center for Missing and Exploited Children (NCMEC), and a subsequent investigation found digital files of child sexual abuse material (CSAM) on the man’s cell phone. The man told authorities that Borum was providing him with the CSAM material, and that they had been communicating on the Whisper app and by text message. The man said he paid Borum’s rent and other expenses in exchange for sexually explicit photos and videos of young children.
A search warrant was executed by GBI at Borum’s Columbus home on May 21, 2022. Borum’s cell phone was seized; it contained hundreds of images and videos of CSAM, including images of CSAM depicting prepubescent minors. Her phone also contained numerous messages between Borum and others discussing the exchange of child sexual abuse material for money. Agents also found online advertisements she created and posted to sell child sexual abuse material. Borum admitted to the facts in court.
The plea agreement in this case is sealed at the request of the Government for protection of minor victims.
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 www.projectsafechildhood.gov.
The case was investigated by GBI, FBI-Atlanta, FBI-Dallas and FBI-Los Angeles, with special assistance from the Bergen County, New Jersey, District Attorney’s Office and the National Center for Missing and Exploited Children.
Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.
Coal County Resident Pleads Guilty to Voluntary ManslaughterRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ronald Wayne Yarbrough, Jr., age 45, of Lehigh, Oklahoma, entered a guilty plea to an Information charging him with Voluntary Manslaughter in Indian Country.
The Information alleged that on November 24, 2022, Yarbrough instigated a fight outside the family home. During the fight, Yarbrough stabbed the victim in the neck. The victim was later declared dead at an area hospital. The crime occurred in Coal County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea in Muskogee, Oklahoma, and ordered the completion of a presentence investigation report. Yarbrough will remain in the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Jordan Howanitz represented the United States.
Bronx Man Charged with Shooting Outside of DeliRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a Complaint charging CHRISTOPHER SCOTT with firing a shot at a victim on a commercial street in the Bronx on August 6, 2023. SCOTT will be presented this afternoon before U.S. Magistrate Judge Valerie Figueredo
U.S. Attorney Damian Williams said: “As alleged, Christopher Scott conducted a targeted shooting of an individual on a summer night outside of a deli near the Pelham Parkway Houses in the Bronx. Thanks to the swift action of our law enforcement partners and the prosecutors of this Office, Scott is now facing justice for his alleged violent actions.”
NYPD Commissioner Edward A. Caban said: “The firing of a gun on a public street will never be accepted as a way of life in New York City. Such a grave act of violence demands accountability. I commend the work of our brave NYPD officers who go in harm’s way, removing illegal guns, and those who pull the trigger, from our communities. I am also grateful for our close alignment with the Office of the United States Attorney for the Southern District of New York as we work together to build strong cases and hold the most violent offenders accountable.”
According to the allegations in the Complaint:[1]
On August 6, 2023, shortly before 10:30 p.m., SCOTT fired a gunshot at an individual (“Victim-1”) near Williamsbridge Road in the Bronx.
Surveillance video captured SCOTT approaching Victim-1, brandishing a firearm, and firing a shot at Victim-1, then following Victim-1 inside a nearby building. A still image from the surveillance footage with SCOTT circled in red is below:
Within minutes after SCOTT fired the shot at Victim-1, and shortly after SCOTT appears to have hidden the firearm used in the shooting under the wheel of a nearby vehicle, NYPD officers arrived at the scene of the shooting, and SCOTT proceeded to interact with the NYPD officers.
After the NYPD officers left the scene of the shooting, one of SCOTT’s associates appears to have retrieved the firearm used in the shooting for SCOTT, and then SCOTT and that associate drove away from the location of the shooting in a grey SUV.
Upon canvassing the scene of the shooting, NYPD officers recovered a shell casing.
On August 14, 2023, shortly before 10:30 p.m., SCOTT was arrested in connection with the above-mentioned shooting. Around the time of his arrest, SCOTT was seen driving the same grey SUV he drove on the night of the shooting. During an inventory search of that SUV, a Springfield Armory model XDS-9 MOD2 OSP 3.3 9mm caliber semi-automatic pistol (the “Firearm”) with eight live rounds of ammunition in the magazine and one live round in the chamber was recovered under the driver’s seat of the vehicle.
The National Integrated Ballistic Information Network of the Bureau of Alcohol, Tobacco, Firearms and Explosives found a preliminary correlation between the shell casing recovered at the scene of the shooting and the Firearm, indicating that the firearm that was used in the shooting was the same firearm found under the driver’s seat of SCOTT’s SUV.
SCOTT was not permitted to possess ammunition or a firearm because of a prior felony conviction for attempted criminal possession of a weapon.
* * *
SCOTT, 26, of the Bronx, New York, is charged with one count of possession of ammunition after a felony conviction and one count of possession of a firearm after a felony conviction, which each carry a maximum sentence of 15 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the NYPD. Mr. Williams also thanked the Bronx County District Attorney’s Office for their assistance in this case.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Meredith C. Foster is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Scott ComplaintBitcoin-for-Cash Exchange Business Owner Agrees to Plead Guilty to Failing to Maintain an Effective Anti-Money Laundering ProgramRead the Press Release
LOS ANGELES – A Santa Monica man has agreed to plead guilty to breaking federal law by allowing his cryptocurrency-cash exchange company to help scammers and drug traffickers launder millions of dollars in criminal proceeds through his business, the Justice Department announced today.
Charles James Randol, 33, agreed to plead guilty to a single-count information charging him with failure to maintain an effective anti-money laundering (AML) program, a crime that carries a statutory maximum sentence of five years in federal prison.
Both the information and plea agreement were filed today in United States District Court in downtown Los Angeles. Randol is expected to formally plead guilty to the charge in the coming weeks.
According to his plea agreement, from October 2017 to July 2021, Randol owned and operated a virtual-currency money services business that eventually was known as Digital Coin Strategies LLC. This company offered cryptocurrency-cash exchange services for a commission.
Randol offered his cryptocurrency exchange services in various ways, including meeting anonymous customers in-person to complete transactions, controlling and operating a network of automated kiosks in Los Angeles, Orange, and Riverside counties that converted cash to Bitcoin and vice versa, and conducting Bitcoin-for-cash transactions for unknown individuals who mailed large amounts of U.S. currency to him, including to post office boxes that he controlled.
Randol advertised his business on various websites, and he maintained a company website that falsely claimed his business was “a fully compliant…money services business” that was registered with the Financial Crimes Enforcement Network, a bureau of the United States Treasury Department. In fact, as Randol admitted in his plea agreement, he repeatedly violated federal law and his company’s own AML policies by facilitating suspicious currency exchange transactions and taking steps to conceal them from law enforcement, including by failing to file required currency transaction reports and suspicious activity reports.
For example, Randol frequently conducted in-person cash transactions that exceeded $10,000 with anonymous or pseudo-anonymous individuals, including people who Randol knew only as “Puppet Shariff,” “White Jetta,” “Aaavvv,” “Aaaa,” “Yogurt Monster,” and “Hood.” In his plea agreement, Randol admitted to engaging in three specific transactions from October 2020 to January 2021 in which he exchanged a total of $273,940 in cash for Bitcoin without requesting a name, proof of identity, Social Security number, or any other information about the buyer or the source of the funds being exchanged. Such transactions violated the Bank Secrecy Act and his company’s AML policy, which required, among other things, that he verify the identity of customers engaging in transactions over $9,999 by obtaining the customer’s full name, address, Social Security number, a verified phone number, and a photocopy of the customer’s official government identification.
- Exchanging Bitcoin for cash sent in the mail from unknown persons
While operating his crypto-exchange business, Randol also conducted hundreds of Bitcoin-for-cash transactions after receiving large cash shipments in the mail from anonymous individuals. In a typical transaction, an anonymous individual would text Randol using an encrypted platform to notify him that a parcel containing cash had been sent to a location that Randol controlled in or around Los Angeles. Once Randol received the parcel, he would count the money and send an equivalent amount of Bitcoin – minus a commission – to a digital wallet controlled by his customers. As with in-person transactions, Randol did not conduct any due diligence on the people mailing him large sums of cash, the source of funds being exchanged, or the purpose of the transaction.
When Randol received the packages, the cash was often packaged in a suspicious manner, including cash hidden inside children’s books, concealed inside fake birthday or holiday presents, buried within puzzle pieces, or wrapped within multiple magazines.
On June 5, 2019, FBI agents interviewed Randol about fraud proceeds that had been mailed to post office boxes he controlled. Two days later, Randol texted a customer stating that he would be taking a “hiatus” from converting cash parcels into cryptocurrency because he “ran into an issue with [law enforcement].” But less than a week later, Randol resumed his cash parcels activity after that same anonymous customer asked Randol if he could exchange $10,000 in cash for Bitcoin.
Randol admitted that his failure to comply with Bank Secrecy Act requirements, including maintaining an effective AML program resulted in criminals using Randol’s business to launder millions of dollars of criminal proceeds. For example, between June 2018 and early 2020, Randol exchanged Bitcoin for cash that was mailed to him by a New Jersey resident who had been tricked into believing his grandson was facing criminal prosecution after purportedly killing an elderly woman in a traffic accident and that the money the victim was sending would be used to help the victim’s grandson with his legal problems. Based on these lies, the victim drained his savings and retirement accounts. While Randol did not participate in the fraud, his business converted the victim’s cash to cryptocurrency and sent it to various digital wallets without conducting any customer due diligence or investigating the source of the money he was receiving.
- Illegal Bitcoin kiosk transactions
Because to Randol’s deficient AML practices, criminals were also able to structure and launder funds through his Bitcoin kiosks. Specifically, Randol operated numerous Bitcoin kiosks, which were in malls, gas stations, and convenience stores in cities such as Los Angeles, Glendale, Santa Clarita, Huntington Beach, Santa Ana, and Riverside.
But the setting on Randol’s kiosks allowed customers to structure funds to avoid currency reporting requirements by creating numerous accounts and by engaging in successive transactions involving up to $3,000. He also set up one or more “test” accounts that contained no customer information, which he allowed customers to use to complete kiosk transactions.
In September 2020, Randol hired a compliance officer for Digital Coin Strategies. Randol ignored this individual’s advice to cease any use of “test” accounts for customer transactions on Bitcoin kiosks. Randol also continued to conduct in-person transactions, despite his compliance officer’s warning that doing so increased the risk that the cash or Bitcoin Randol was receiving was derived from an unlawful source.
The FBI and Homeland Security Investigations investigated this matter, with assistance from Federal Deposit Insurance Corporation Office of Inspector General, and the United States Postal Inspection Service.
Assistant United States Attorneys Ian V. Yanniello of the General Crimes Section and James E. Dochterman of the Asset Forfeiture and Recovery Section are prosecuting this case.
Bakersfield Resident Sentenced for Methamphetamine Sales from Smoke ShopRead the Press Release
FRESNO, Calif. — Abraham Eduardo Navarro Mendez, 39, of Bakersfield, Calif., was sentenced today to five years in prison for possessing with intent to distribute methamphetamine, United States Attorney Phillip A. Talbert announced.
According to court documents, in 2019, agents of Homeland Security Investigations received information that Navarro Mendez was selling methamphetamine from Havana Smoke Shop in Bakersfield. They then conducted two separate undercover drug transactions with Navarro Mendez, who delivered a total of 2.5 pounds of high-purity methamphetamine for $3,750.
This case was the product of an investigation by the Homeland Security Investigations of the Department of Homeland Security with assistance from the Bakersfield Police Department. Assistant United States Attorney Karen Escobar prosecuted the case.
Bakersfield Man Sentenced to 5 Years for Possessing a Firearm in Furtherance of a Drug Trafficking OffenseRead the Press Release
FRESNO, Calif. — Derrick Gage, 42, of Bakersfield, was sentenced to 5 years in prison for Possession of a Firearm in Furtherance a Drug Trafficking Offense, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 23, 2022, law enforcement officers were on patrol at the Plaza Motel on Union Avenue in Bakersfield when they saw Gage inside a room with a firearm and what appeared to be drugs. The officers searched the room and seized a loaded 9 mm semi-automatic handgun as well as cocaine. Gage is prohibited from possessing firearms because he has prior felony convictions for domestic violence, participation in a criminal street gang, and sales of cocaine.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya 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.
Ardmore Nurse Pleads Guilty to Tampering with Pain MedicationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Rebecca Elaine Holloway, age 32, of Oklahoma City, Oklahoma, entered a guilty plea to an Information charging her with one count of Tampering with Consumer Products, in violation of Title 18, United States Code, Section 1365(a) and (a)(4). Tampering with Consumer Products, in violation of 18 U.S.C. §1365(a) and (a)(4) is punishable by up to 10 years of imprisonment, a fine up to $250,000.00, or both.
On August 17, 2023, the United States Attorney’s Office filed an information that charged Holloway with tampering with consumer products that affected interstate and foreign commerce, specifically fentanyl and hydromorphone, between on or about March 2022 and April 22, 2022.
The charges arose from an investigation by the United States Food and Drug Administration’s Office of Criminal Investigations and the Oklahoma Bureau of Narcotics.
At the plea hearing on August 31, 2023, Holloway admitted to stealing fentanyl and hydromorphone intended for intensive care patients while she was employed at the Intensive Care Unit (ICU) of Mercy Hospital in Ardmore, Oklahoma. As part of her plea agreement, Holloway confessed she removed the pain medication from their vials, refilled the empty vials with tap water, and returned the tampered vials to the controlled storage locker. Holloway admitted she did so despite knowing the pain medication vials were intended for patients in acute pain and distress, and that by depriving patients of the medication, she knew she was placing them at risk of death and bodily injury.
“Patients rely on the knowledge that they will receive FDA-approved medications to manage their pain,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to pursue and bring to justice healthcare professionals who jeopardize patients’ health by tampering with their pain medications.”
“Our healthcare system is built upon trust,” said U.S. Attorney Christopher J. Wilson. “This office will not hesitate to prosecute health care workers who abuse that trust.”
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Kara Traster and Associate Chief Counsel Jason Chandler of the Food and Drug Administration represented the United States.
Anyone who was a patient in the Mercy Hospital Intensive Care Unit in Ardmore, Oklahoma, between March 1, 2022, and April 22, 2022, and believes that they may have received a tampered dose of fentanyl or hydromorphone can contact the FDA Office of Criminal Investigations at 214-790-7545.
59 Charged with Illegal Trafficking, Possession, and Use of Firearms, Drug Trafficking, and Conspiracy as a Result of Summer Violent Crime Reduction Effort in ClevelandRead the Press Release
Federal, county, and local law enforcement officials today announced that 59 individuals were charged and arrested in connection with firearms-trafficking, narcotics, conspiracy, or other firearms offenses after a three month, violent-crime-reduction initiative in Cleveland this summer. The vast majority were charged in U.S. District Court, while the remaining individuals were charged in state court. These individuals were apprehended in a series of coordinated arrests made during the last two weeks.
“The Justice Department’s work to disrupt and dismantle the criminal gun trafficking pipelines that flood our communities with illegal guns has never been more urgent than it is now,” said Attorney General Merrick B. Garland. “That is why our prosecutors and agents are working more closely than ever before with our local law enforcement partners to get illegal guns off of our streets and hold accountable those who put illegal guns in the hands of violent criminals.”
Indictments and complaints were recently unsealed in federal court. They detail a lengthy investigation, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), that focused on reducing firearms-related crime in several areas of Cleveland by studying data about areas with gun-crime violence, then identifying illegal firearms sellers to disrupt their trafficking. The investigation resulted in the seizure of over 240 firearms, 203 of which law enforcement purchased from illegal sellers and permanently removed from Cleveland’s streets. National Integrated Ballistic Information Network (NIBIN) data shows that a significant number of those firearms are connected to violent criminal activity, including homicides and felonious assaults, that took place in Cleveland and surrounding Northeast Ohio suburbs in 2022 and 2023. Of the purchased firearms, 17 are “ghost guns” – meaning, unserialized and untraceable firearms, typically assembled at home – and 28 are machinegun conversion devices or “switches” – a device that enables a firearm to fire in fully automatic mode.
In one case, law enforcement purchased more than 50 firearms from a group of seven people working together to sell firearms on Cleveland’s streets, even though none of the involved individuals hold a federal firearms license. Those firearms included stolen firearms, firearms with obliterated serial numbers, “switches,” already-loaded firearms, assault rifles, and firearms that had been previously used to commit violent crimes. Sometimes, these individuals also sold controlled substances to law enforcement officers at the same time. In two additional cases, law enforcement purchased, respectively, 33 firearms (including “switches”) and 23 firearms (including “switches”) from two other individuals who do not hold a federal firearms license. Many of these sales took place in public parking lots of business establishments during business hours or in recreational areas while nearby uninvolved, law-abiding citizens were engaged in their day-to-day errands or engaged in recreational activities.
Also, during this investigation, the ATF identified five individuals who were actively engaged in a conspiracy to conduct a home invasion and rob, at gunpoint, what they believed to be a “stash house” containing several kilograms of cocaine. Law enforcement intervened before these individuals could carry out their plan. Additionally, during this investigation, law enforcement purchased or seized almost 1.5 kilograms of cocaine, 215 grams of cocaine base, almost three kilograms of methamphetamine, 686 fentanyl pills, almost 1.5 kilograms of heroin/fentanyl mix, and 1,144 MDMA pills (otherwise known as Molly or Ecstasy).
Some defendants were charged together, but several others were charged individually. In all cases, however, the charges stemmed from the extensive, targeted, and sustained effort this past summer, led by the ATF and assisted by other federal, state, and local law enforcement partners, to clamp down on the illegal firearms trafficking, use, and possession, as well as the associated distribution of drugs, in Cleveland.
The following is a breakdown of the charges in U.S. District Court, according to court documents:
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Malachi Berry, 21; Darvell Jackson, 20; and Steven Armstrong, 19, all of Cleveland, were charged together with conspiracy to possess a machinegun. Jackson and Armstrong were further charged with illegal possession of a machinegun. In the same indictment, these individuals, along with Nimar Linder, 21, of Cleveland, were also charged with conspiracy to engage in the business of dealing firearms without a federal firearms license. Armstrong and Linder were charged as felons in possession of a firearm.
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Carlos Dupree, 43, of Cleveland; Dominique Goldsby, 32, of Cleveland; Jesse Mcdade, 41, of Cleveland; Norman Young, 37, of Cleveland; Martin Goodson, 41, of Cleveland; Lajuan Erwin, 25, of Mayfield Heights; Chevez Moorer, 23, of Cleveland; Aaron Wimbley, 22, of Garfield Heights; Alexander Duncan, 19, of Cleveland; Damien Body, 39, of Cleveland; Derrick Donald, 41, of Cleveland; Nahum Holmes, 31, of Brook Park; Akil Edmonds, 39, of Cleveland; Willie C. Jackson, 36, of Cleveland; and Deandre Smith, 36, of Cleveland, were indicted on distribution of drugs charges.
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Josean Ortiz-Stuart, 34, and Jesus Vega, 29, both of Cleveland, were indicted together and both charged with distribution of drugs. Also named in that indictment was Gerald Matos, 38, of Cleveland, who was charged with being a felon in possession of a firearm.
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Elias Pagan, 32, Ivan Santana, 26, and Angel Santiago, 46, all of Cleveland, were indicted together. Pagan faces numerous charges for distribution of drugs, as well being a felon in possession of firearms, and both Pagan and Santana were also charged with engaging in the business of importing, manufacturing, or dealing in firearms without a federal firearms license. Santiago is also charged with distribution of drugs.
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Ambray Underwood, 25, of Euclid, was charged in an indictment for conspiracy to distribute drugs, and drug distribution.
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Willie Earl Jackson, 26, of Cleveland, and Shane Plats, 31, of Ashtabula, were charged in the same indictment with engaging in the business of dealing firearms without a federal firearms license. Wiilie Earl Jackson was also charged in that indictment with trafficking in firearms.
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Deshonn Brown, 19, and Demarius Jefferson, 18, both of Cleveland, were both charged with illegal possession of machineguns.
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Jacob Plumb, 40, of Parma, was charged with distribution of drugs and possession of a firearm in furtherance of a drug trafficking crime.
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Isaiah Overton, 23, of Cleveland, and Charles Morris, 33, of East Cleveland, were charged in a single indictment with distribution of drugs. Additionally, Overton was charged with using and carrying a firearm during and in relation to a drug trafficking Crime.
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Corte’z Buggs, 29, of Cleveland, was charged in an indictment with distribution of Drugs and receipt of firearm while under felony indictment.
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Michael Mcpherran, 38, of Parma, was charged with conspiracy to distribute drugs and distribution of drugs.
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Harold Pearl, 39, of Cleveland, was charged with distribution of drugs and being a felon in possession of a firearm.
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Alante Heard, 33, of Cleveland; Antonio Sweeney, 24, of Cleveland; Maurice Commons, 22, of North Randall; and Markus Williams, 33, of Cleveland, were charged by complaint with conspiracy to possess with intent to distribute drugs and possession of a firearm in furtherance of a drug trafficking crime.
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Marquis Henson, 38; Deon Brown, 19; and Clarence Payne, 38, all of Cleveland, were charged with being a felon in possession of a firearm.
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Kenneth Smith, 23, of East Cleveland, was charged with engaging in the business of dealing firearms without a federal firearms license, illegal possession of a machinegun, and being a felon in possession of firearms.
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Andre Lewis, 35, of Cleveland, was charged with distribution of drugs and using and carrying a firearm during and in relation to a drug trafficking crime.
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Devaunty Lewis, 31, and Nicholas Johnson, 33, both of Cleveland, were charged jointly in an indictment with conspiracy to engage in the business of importing, manufacturing, or dealing in firearms without a federal firearms license, and conspiracy to engage in firearms trafficking. Both were individually charged with engaging business in dealing with firearms without a license and trafficking in firearms. Lewis was also charged with being a felon in possession of a firearm. Johnson was also charged with engaging in the business of importing, manufacturing, or dealing in firearms without a federal firearms license.
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Maurice Sterett, 39, of Cleveland; Antonio Cross, 22, of Cleveland; Marvell Roach, 43, of Willoughby; Kenneth Timberlake, 30, of Cleveland; and Travis Williams, 46, of Cleveland, were charged in an indictment with conspiracy to engage in the business of importing, manufacturing, or dealing in firearms without a federal firearms license. Sterett, Cross, Timberlake, and Williams were further charged, individually, with engaging in the business of importing, manufacturing, or dealing in firearms without a federal firearms license. Sterett, Cross, Roach, Timberlake, and Williams were also charged with conspiracy to engage in firearms trafficking and individual counts of firearms trafficking. Sterett, Timberlake, Travis Williams, and Roach were also charged with being a felon in possession of firearms. Sterett was further charged with distribution of drugs. Cross was also charged with illegal transfer of a machinegun.
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Darion Shelton, 20, of Cleveland, was charged with engaging in the business of dealing firearms without a federal firearms license, and trafficking in firearms in connection with machinegun conversation devices or “switches.” He has also been charged with illegal possession of a machinegun.
The following is a breakdown of the charges in the Cuyahoga County Court of Common Pleas, according to court documents:
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Marcel Battle, 30, of Canton: drug trafficking;
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Avant Wilson, 22, of Cleveland: receiving stolen property (motor vehicle);
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Nathan Roby, 44, of Cleveland: drug trafficking;
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Raymond Callahan, 34, of Cleveland: drug trafficking;
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Raphael Deen, 30, of Cleveland: drug trafficking;
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Terry Lyons, 33, of Cleveland: drug trafficking;
If convicted, a federal district court judge will determine any penalty after considering the U.S. Sentencing Guidelines and other statutory factors.
Attorney General Garland and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement. ATF Director Steven M. Dettelbach, U.S. Marshal Peter J. Elliott, and Cleveland Mayor Justin M. Bibb provided additional details relating to the initiative, as well as regarding larger firearms enforcement and violence-prevention efforts.
ATF investigated these cases, with assistance from the Cleveland Division of Police, U.S. Marshals Service, the Drug Enforcement Administration, FBI, Homeland Security Investigations, Ohio Bureau of Criminal Investigation, the Ohio Adult Parole Authority, Ohio Investigative Unit, Customs and Border Patrol, Air and Marine Division, Ohio State Highway Patrol, and the Cuyahoga County Sheriff’s Office.
Assistant U.S. Attorney Kelly Galvin and other Assistant U.S. Attorneys for the Northern District of Ohio and the Cuyahoga County Prosecutor’s Office are prosecuting the cases.
An indictment or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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59 Charged with Illegal Trafficking, Possession, and Use of Firearms, Drug Trafficking, and Conspiracy as a Result of Summer Violent Crime Reduction Effort in ClevelandRead the Press Release
CLEVELAND – Federal, county, and local law enforcement officials today announced that 59 individuals were charged and arrested in connection with firearms-trafficking, narcotics, conspiracy, or other firearms offenses after a three month, violent-crime-reduction initiative in Cleveland this summer. The vast majority were charged in United States District Court, while the remaining individuals were charged in state court. These individuals were apprehended in a series of coordinated arrests made during the last two weeks.
United States Attorney Rebecca C. Lutzko made the announcement earlier today. Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Director Steven M. Dettelbach, United States Marshal Peter J. Elliott, and Cleveland Mayor Justin M. Bibb provided additional details relating to the initiative, as well as regarding larger firearms enforcement and violence-prevention efforts.
"The Justice Department's work to disrupt and dismantle the criminal gun trafficking pipelines that flood our communities with illegal guns had never been more urgent than it is now," said Attorney General Merrick B. Garland. "That is why our prosecutors and agents are working more closely than ever before with our local law enforcement partners to get illegal guns off of our streets and hold accountable those who put illegal guns in the hands of violent criminals."
Indictments and complaints were recently unsealed in federal court. They detail a lengthy investigation, led by ATF, that focused on reducing firearms-related crime in several areas of Cleveland by studying data about areas with gun-crime violence, then identifying illegal firearms sellers to disrupt their trafficking. The investigation resulted in the seizure of over 240 firearms, 203 of which law enforcement purchased from illegal sellers and permanently removed from Cleveland’s streets. NIBIN data shows that a significant number of those firearms are connected to violent criminal activity, including homicides and felonious assaults, that took place in Cleveland and surrounding Northeast Ohio suburbs in 2022 and 2023. Of the purchased firearms, 17 are “ghost guns”—meaning, unserialized and untraceable firearms, typically assembled at home—and 28 are machinegun conversion devices or “switches”—a device that enables a firearm to fire in fully automatic mode.
In one case, law enforcement purchased more than 50 firearms from a group of 7 people working together to sell firearms on Cleveland’s streets, even though none of the involved individuals holds a federal firearms license. Those firearms included stolen firearms, firearms with obliterated serial numbers, “switches,” already-loaded firearms, assault rifles, and firearms that had been previously used to commit violent crimes. Sometimes, these individuals also sold controlled substances to law enforcement officers at the same time. In two additional cases, law enforcement purchased, respectively, 33 firearms (including “switches”) and 23 firearms (including “switches”) from two other individuals who do not hold a federal firearms license. Many of these sales took place in public parking lots of business establishments during business hours or in recreational areas while nearby uninvolved, law-abiding citizens were engaged in their day-to-day errands or engaged in recreational activities.
Also during this investigation, the ATF identified 5 individuals who were actively engaged in a conspiracy to conduct a home invasion and rob, at gunpoint, what they believed to be a “stash house” containing several kilograms of cocaine. Law enforcement intervened before these individuals could carry out their plan. Additionally, during this investigation, law enforcement purchased or seized almost 1.5 kilograms of cocaine, 215 grams of cocaine base, almost 3 kilograms of methamphetamine, 686 fentanyl pills, almost 1.5 kilograms of heroin/fentanyl mix, and 1,144 MDMA pills (otherwise known as Molly or Ecstasy).
Some defendants were charged together, but several others were charged individually. In all cases, however, the charges stemmed from the extensive, targeted, and sustained effort this past summer, led by ATF and assisted by other federal, state, and local law enforcement partners, to clamp down on the illegal firearms trafficking, use, and possession, as well as the associated distribution of drugs, in Cleveland.
The following is a breakdown of the charges in United States District Court, according to court documents:
- MALACHI BERRY, 21, Cleveland, DARVELL JACKSON, 20, Cleveland, and STEVEN ARMSTRONG, 19, Cleveland, were charged together in a Conspiracy to Possess a Machinegun. JACKSON and ARMSTRONG were further charged with Illegal Possession of a Machinegun.
In the same indictment, these individuals, along with NIMAR LINDER, 21, Cleveland, were also charged with Conspiracy to Engage in the Business of Dealing Firearms without a Federal Firearms License.
ARMSTRONG and LINDER were charged as Felons in Possession of a Firearm.
- According to court documents, the following individuals have been indicted on Distribution of Drugs charges:
CARLOS DUPREE, 43, Cleveland, DOMINIQUE GOLDSBY, 32, Cleveland, JESSE MCDADE, 41, Cleveland, NORMAN YOUNG, 37, Cleveland, MARTIN
GOODSON, 41, Cleveland, LAJUAN ERWIN, 25, Mayfield Heights, CHEVEZ MOORER, 23, Cleveland, AARON WIMBLEY, 22, Garfield Heights, ALEXANDER
DUNCAN, 19, Cleveland, DAMIEN BODY, 39, Cleveland, DERRICK DONALD, 41, Cleveland, NAHUM HOLMES, 31, Brook Park, AKIL EDMONDS, 39, Cleveland, WILLIE C. JACKSON, 36, Cleveland, and DEANDRE SMITH, 36, Cleveland.
- Indicted together were JOSEAN ORTIZ-STUART, 34, Cleveland, JESUS VEGA, 29, Cleveland, who were both charged with Distribution of Drugs. Also named in that indictment was GERALD MATOS, 38, Cleveland, who was charged with being a Felon in Possession of a Firearm.
- Indicted together were ELIAS PAGAN 32, Cleveland, IVAN SANTANA, 26, Cleveland, ANGEL SANTIAGO, 46, also of Cleveland. PAGAN also faces numerous charges for Distribution of Drugs, as well being a Felon in Possession of Firearms, and both PAGAN and SANTANA were also charged with Engaging in the Business of Importing, Manufacturing, or Dealing in Firearms Without a Federal Firearms License.
SANTIAGO is also charged with Distribution of Drugs.
- AMBRAY UNDERWOOD, 25, Euclid, was charged in an indictment for Conspiracy to Distribute Drugs, and Drug Distribution.
- WILLIE EARL JACKSON, 26, Cleveland, and SHANE PLATS, 31, Ashtabula, were charged in the same indictment with Engaging in the Business of Dealing Firearms without a Federal Firearms License. WIILIE EARL JACKSON was also charged in that indictment with Trafficking in Firearms.
- DESHONN BROWN age, 19, Cleveland; DEMARIUS JEFFERSON, 18, Cleveland, were both charged with Illegal Possession of Machine guns.
- JACOB PLUMB, 40, Parma, was charged with Distribution of Drugs and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
- ISAIAH OVERTON, 23, Cleveland, and CHARLES MORRIS, 33, East Cleveland, were charged in a single indictment with Distribution of Drugs. Additionally, OVERTON was charged with Using and Carrying a Firearm During and in Relation to a Drug Trafficking Crime.
- CORTE’Z BUGGS, 29, Cleveland was charged in an indictment with Distribution of Drugs and Receipt of Firearm while Under Felony Indictment.
- MICHAEL MCPHERRAN, 38, Parma, Ohio, was charged with Conspiracy to Distribute Drugs, and Distribution of Drugs.
- HAROLD PEARL, 39, Cleveland, was charged with Distribution of Drugs and being a Felon in Possession of a Firearm.
- Charged by complaint with Conspiracy to Possess with Intent to Distribute Drugs and Possession of a Firearm in Furtherance of a Drug Trafficking Crime were ALANTE HEARD, 33, Cleveland, ANTONIO SWEENEY, 24, Cleveland, MAURICE COMMONS, 22, North Randall, and MARKUS WILLIAMS, 33, Cleveland.
- Charged with being a Felon in Possession of a Firearm were MARQUIS HENSON, 38, Cleveland, DEON BROWN, 19, Cleveland, and CLARENCE PAYNE, 38, Cleveland.
- KENNETH SMITH, 23, East Cleveland, was charged with Engaging in the Business of Dealing Firearms without a Federal Firearms License, Illegal Possession of a Machinegun, and being a Felon in Possession of Firearms.
- ANDRE LEWIS, 35, Cleveland, was charged with Distribution of Drugs and Using and Carrying a Firearm During and in Relation to a Drug Trafficking Crime.
- DEVAUNTY LEWIS, 31, Cleveland, NICHOLAS JOHNSON, 33, Cleveland, were charged jointly in an indictment with Conspiracy to Engage in the Business of Importing, Manufacturing, or Dealing in Firearms without a Federal Firearms License, and Conspiracy to Engage in Firearms Trafficking. Both were individually charged with Engaging Business in Dealing with Firearms Without a License and Trafficking in Firearms.
LEWIS was also charged with being a Felon in Possession of a Firearm.
JOHNSON was also charged with Engaging in the Business of Importing, Manufacturing, or Dealing in Firearms without a Federal Firearms License.
- The following were charged in an indictment with Conspiracy to Engage in the Business of Importing, Manufacturing, or Dealing in Firearms Without a Federal Firearms License: MAURICE STERETT, 39, Cleveland, ANTONIO CROSS, 22, Cleveland, MARVELL ROACH, 43, Willoughby, KENNETH TIMBERLAKE, 30, Cleveland, and TRAVIS WILLIAMS, 46, Cleveland.
STERETT, CROSS, TIMBERLAKE, and WILLIAMS were further charged, individually, with Engaging in the Business of Importing, Manufacturing, or Dealing in Firearms Without a Federal Firearms License.
STERETT, CROSS, ROACH, TIMBERLAKE, and WILLIAMS were also charged with Conspiracy to Engage in Firearms Trafficking and individual counts of Firearms Trafficking.
STERETT, TIMBERLAKE, TRAVIS WILLIAMS, and ROACH were also charged with being a Felon in Possession of Firearms.
STERETT was further charged with Distribution of Drugs.
Finally, CROSS was also charged with Illegal Transfer of a Machinegun.
- DARION SHELTON, 20, Cleveland, was charged with Engaging in the Business of Dealing Firearms without a Federal Firearms License, and Trafficking in Firearms in connection with machinegun conversation devices or “switches.” He has also been charged with Illegal Possession of a Machinegun.
The following is a breakdown of the charges in the Cuyahoga County Court of Common Pleas, according to court documents:
- MARCEL BATTLE, 30, Canton, Drug Trafficking.
- AVANT WILSON, 22, Cleveland, Receiving Stolen Property (Motor Vehicle).
- NATHAN ROBY, 44, Cleveland, Drug Trafficking.
- RAYMOND CALLAHAN, 34, Cleveland, Drug Trafficking.
- RAPHAEL DEEN, 30, Cleveland, Drug Trafficking.
- TERRY LYONS, 33, Cleveland, Drug Trafficking.
An indictment or complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, each defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
The investigation preceding the indictments was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), with assistance from the Cleveland Division of Police (“CDP”), the United States Marshals Service (“USMS”), the Drug Enforcement Administration (“DEA”), the Federal Bureau of Investigation (“FBI”), the Department of Homeland Security Investigations (“HSI”), the Ohio Bureau of Criminal Investigation (“BCI”), the Ohio Adult Parole Authority (“APA”), the Ohio Investigative Unit (“OIU”), Customs and Border Patrol (“CBP”), Air and Marine Division, the Ohio State Highway Patrol (“OSP”), and the Cuyahoga County Sheriff’s Office. This Operation was also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) initiative. The cases stemming from this investigation are being prosecuted by a team of AUSAs in the U.S. Attorney’s Office, led by AUSA Kelly Galvin, and by the Cuyahoga County Prosecutor’s Office.- MALACHI BERRY, 21, Cleveland, DARVELL JACKSON, 20, Cleveland, and STEVEN ARMSTRONG, 19, Cleveland, were charged together in a Conspiracy to Possess a Machinegun. JACKSON and ARMSTRONG were further charged with Illegal Possession of a Machinegun.
19-year-old pleads guilty to possessing firearm on local middle school groundsRead the Press Release
DAYTON, Ohio – A 19-year-old Dayton man pleaded guilty in federal court here today to possessing a gun in the parking lot of an area middle school.
Jacob Ruff, Jr. admitted he possessed a firearm on the grounds of Edwin Joel Brown Middle School on May 12, 2023.
According to court documents, ballistics were collected from the scene and sent to the National Integrated Ballistic Information Network (NIBIN) when Dayton police officers responded to a shots fired call in the parking lot of the school. Security footage of the school implicated Ruff in the crime.
On May 31, 2023, Ruff was arrested after fleeing from law enforcement at the site of a loud block party in a public roadway. Once he was apprehended, officers discovered a gun in his fanny pack.
Agents with the ATF test fired the weapon and submitted shell casings to NIBIN, which matched the shell casings collected at Edwin Joel Brown Middle School.
Ruff was charged federally in June 2023.
Possessing a firearm in a school zone is a federal crime punishable by up to five years in prison. Congress sets the maximum statutory sentence, and sentencing of the defendant will be determined by the Court at a future hearing based on the advisory sentencing guidelines and other statutory factors.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN). Through the violent-crime reduction program, 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.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; John Nokes, Acting Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Dayton Police Chief Kamran Afzal announced the guilty plea offered today before U.S. Magistrate Judge Caroline H. Gentry. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
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4 September 2023
Sturgis Woman Sentenced to 14 Years in Federal Custody for Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Sturgis, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine). The sentencing took place on August 28, 2023
Devan McKenzie, 27, was sentenced to 14 years in federal prison, followed by five of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McKenzie was indicted for three counts of Conspiracy to Distribute a Controlled Substance (methamphetamine, heroin, and fentanyl) by a federal grand jury in December of 2021. She pleaded guilty on April 14, 2023.
Beginning around February of 2020, McKenzie began selling controlled substances with Brook and Dustin Staeffler. The group made arrangements to obtain the drugs in Colorado and then transport them to South Dakota. McKenzie transported the substances on several occasions and recruited her own sub-distributors to further sell the drugs in the Rapid City area. Overall, the conspiracy was responsible for at least 1.29 kilograms of methamphetamine, 857.5 grams of fentanyl, and 860.5 grams of heroin. During the investigation, law enforcement executed search warrants at McKenzie’s residence, and located drugs and items indicating she was actively engaged in selling illegal substances.
This case was investigated by the Unified Narcotics Enforcement Team, which is local a drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
McKenzie was immediately remanded to the custody of the U.S. Marshals Service.
Justice Department to Monitor Polls in Rhode Island for Compliance with Federal Voting Rights LawsRead the Press Release
PROVIDENCE , RI – The Civil Rights Division of the Justice Department announced today its plans to monitor compliance with federal voting rights laws in four jurisdictions for the September 5, 2023, federal special primary election in Rhode Island’s First Congressional District.
Since the passage of the Voting Rights Act in 1965, the Civil Rights Division has regularly monitored elections in the field in jurisdictions around the country to protect the rights of voters. The Civil Rights Division enforces federal voting rights laws that protect the rights of all citizens to access the ballot.
For this election, the Civil Rights Division will monitor polls on Election Day in the cities of Central Falls, Pawtucket, Providence, and Woonsocket.
The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act and the Civil Rights Act.
Civil Rights Division personnel also will be available to receive complaints from the public related to possible violations of federal voting rights laws by telephone toll-free at 800-253-3931 or by a complaint form on the department’s website https://civilrights.justice.gov/.
Visit Civil Rights Division | Voting Section | United States Department of Justice for more information about the Voting Rights Act and other federal voting rights law.
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1 September 2023
Westbank Resident Pleaded Guilty to Theft of Stolen MailRead the Press Release
NEW ORLEANS, LOUISIANA –United States Attorney Duane A. Evans announced that TYREN TYRONE SHENALL (“SHENALL”), age 19, pleaded guilty on August 31, 2023 to one count of for theft or receipt of stolen mail matter, in violation of Title 18, United States Code, Section 1708.
According to court documents, on November 15, 2022, SHENALL along with his co-conspirators Eric Williams and Kelan Gennings, stole U.S. Mail from post office mailboxes located at the Covington Post Office using a postal arrow key to access said mailbox. At sentencing, which was scheduled by Judge Eldon Fallon for November 30, 2023, SHENALL faces a maximum prison term of five years, a fine of up to $250,000, and up to three years of supervised release.
The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit is in charge of the prosecution.
West Virginia man admits to federal drug chargeRead the Press Release
ELKINS, WEST VIRGINIA –Steven Michael Hawley, age 36, of Moorefield, West Virginia, has pled guilty to conspiracy to distribute methamphetamine.
According to court documents and statements made in court, Hawley worked with others to sell methamphetamine in Moorefield and from a house on Fitzwater Drive in Hardy County. Hawley, was the last of five co-conspirators to plead guilty.
Hawley is facing up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
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West Texas Man Sentenced to 15 Years in Prison for Producing, Possessing Child PornographyRead the Press Release
PECOS, Texas – A Ward County man was sentenced in a federal court in Pecos Monday to 188 months in prison for production and possession of child pornography.
According to court documents, Elroy Wilkerson, 60, was arrested on Nov. 17, 2022 based on a complaint alleging he had been taking nude photos of a minor at his home in Monahans. Ward County Sheriff’s Office obtained a search warrant for Wilkerson’s residence and seized six cellphones for forensic analysis. Homeland Security Investigations (HSI) Midland provided assistance and found 36 confirmed images of child pornography of the child victim as well as two videos in which the child victim is seen nude.
Wilkerson was found guilty in a jury trial in April on one count of production of child pornography and one count of possession of child pornography.
“This 15-year federal prison sentence sends a clear message that those who exploit and prey on our children for sexual gratification will face severe consequences,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I commend the jury for their dedication to justice and decision to find this defendant guilty on both charges. I also recognize and appreciate the successful investigative efforts of our local and federal law enforcement partners.”
“The harm that child predators cause to the most innocent members of our society is devastating and endures a lifetime,” said Special Agent in Charge Francisco B. Burrola for the Homeland Security Investigations El Paso Division. “Homeland Security Investigations will continue to vigorously investigate these cases alongside our law enforcement partners to hold these offenders accountable for the harm they cause in society.”
HSI and the WCSO investigated the case.
Assistant U.S. Attorney Amy Greenbaum prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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United States Attorney Kevin Ritz Inducted to Memphis-Shelby County Schools Alumni Hall of FameRead the Press Release
Memphis, TN – United States Attorney Kevin G. Ritz was honored recently as one of several notable graduates to be named to the Memphis-Shelby County Schools (MSCS) Alumni Hall of Fame. At a gala and award ceremony on August 24, MSCS paid tribute to Memphians whose compelling stories and professional achievements provide inspiration to city students. In addition to U.S. Attorney Ritz, this year’s honorees included The Memphis State Eight, Velma Lois Jones, Dr. Derrick Payne, Dr. Quodarrius Toney, Pastor Tony Wade, Thaddeus Young, and Dr. Charlie Caswell, Jr.
Selected photos of the gala and a video highlighting Mr. Ritz’s accomplishments are available below.
A graduate of Ridgeway Elementary School, White Station Junior High, and White Station High School, Ritz credits his MSCS experience with providing the grounding for his lifelong dedication to public service.
“I’m very proud to be a public-school graduate; it’s something I talk about whenever I introduce myself to any community or law enforcement group,” said U.S. Attorney Ritz. “I had terrific teachers who taught me how to write and helped build the foundation for me to become a lawyer that specialized in writing. I attended schools that were extremely diverse and taught me to learn from and interact with people who are different from me. I value so highly what the Memphis-Shelby County Schools did for me. This is just a tremendous honor.”
After graduation, Ritz received his J.D. from the University of Virginia, his M.S. in Foreign Service from Georgetown University, and his B.A. with High Distinction from the University of Virginia, where he was a Jefferson Scholar. Between college and law school, Mr. Ritz worked for the United States Department of State. He then returned to Memphis, where he clerked for U.S. Court of Appeals Judge Julia Gibbons before joining the U.S. Attorney’s Office. Ritz later became the Chair of the Tennessee Bar Association’s Appellate Practice Section, President of the Federal Bar Association’s Memphis Chapter, and an Adjunct Professor at the University of Memphis Cecil C. Humphreys School of Law.
Past MSCS Hall of Fame inductees include Elvis Presley, Benjamin Hooks, Penny Hardaway, actress Kathy Bates, songwriter/producer David Porter, former Memphis Police Department director Toney Armstrong, and designer and CEO Brandice Daniel.
For more information about the 2023 MSCS Alumni Hall of Fame, visit scsk12.org/hof.
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United States Attorney Kevin Ritz among Memphis-Shelby County Schools 2023 Alumni Hall of Fame inductees.
U.S. Attorney Ritz: “I value so highly what the Memphis-Shelby County Schools did for me. I'm extremely proud to be a graduate of our public school system.” U.S. Attorney Ritz with Dr. Charlie Caswell, who was also honored at the Hall of Fame Gala.U.S. Postal Service Employee Charged with Assaulting a Supervisor at Postal Facility in Carmel Mountain RanchRead the Press Release
NEWS RELEASE SUMMARY – September 1, 2023
SAN DIEGO – Edwin Cuadrado, Jr., a United States Postal Service (USPS) employee, was arrested and charged in a federal criminal complaint with stabbing a supervisor on August 25 at a mail facility in Carmel Mountain Ranch.
At a hearing today in federal court, U.S. Magistrate Judge William V. Gallo ordered Cuadrado held without bond after the government argued he is a flight risk and danger to the community. A preliminary hearing is scheduled for September 12 at 9:30 before Judge Gallo.
The criminal complaint alleges that Cuadrado used a knife to stab a supervisor in the back of the head.
According to the criminal complaint, Cuadrado first engaged in a verbal and physical altercation with one of his USPS supervisors at a nearby gas station late in the afternoon on August 25. Shortly thereafter, Cuadrado drove his USPS vehicle into the main employee parking lot of the USPS mail processing and distribution facility located at 11251 Rancho Carmel Drive. While in the parking lot of that facility, three different supervisory USPS employees attempted to speak with Cuadrado regarding the recent altercation. Cuadrado responded by brandishing a knife and stabbing one of the supervisors before leaving the scene. Responding paramedics treated the wound to the back of the supervisor’s head before that supervisor was taken to a hospital for further treatment.
Cuadrado remained at large until he was arrested by investigators on the morning of August 30.
DEFENDANT Case Number 23-MJ-3140
Edwin Cuadrado Jr. Age: 37 San Diego, CA
SUMMARY OF CHARGES
8 U.S.C. § 111(a)(1) – Assault on a Federal Employee or Officer
Maximum penalty: Five years in prison; $250,000 fine.
8 U.S.C. § 111(a)(1) and (b) – Assault on a Federal Employee or Officer Inflicting Bodily Injury
Maximum penalty: Twenty years in prison; $250,000 fine.
AGENCY
United States Postal Inspection Service
San Diego Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Files Lawsuit Seeking Damages from Southern California Edison and Tree Service for 2020 Bobcat Fire in Angeles National ForestRead the Press Release
LOS ANGELES – The United States today filed a complaint alleging that the Bobcat Fire – one of the largest wildfires ever in Los Angeles County – was caused by the failure of Southern California Edison and its tree maintenance contractor to properly maintain trees that came into contact with power lines and caused the 2020 blaze.
The lawsuit filed in United States District Court alleges that the SCE and Utility Tree Service (UTS) were negligent and therefore are liable for damages sustained by the United States during the fire that burned more than 114,000 acres, nearly 100,000 of which were in the Angeles National Forest.
The United States Forest Service sustained fire suppression costs in excess of $56 million, and it incurred property and natural resource damages of over $65 million, according to the complaint.
“Forest Service investigators determined that the Bobcat Fire ignited due to a tree in contact with power lines (conductors) owned and operated by SCE and maintained by SCE and UTS,” the lawsuit states. “The contact resulted in ignition of vegetation on a branch, which fell to the ground and spread.”
The wildfire started on September 6, 2020, and ultimately destroyed 171 structures and 178 vehicles, damaged 47 structures, and resulted in the widespread evacuation of residences. Nearly three years later, more than 100 miles of trails and numerous campgrounds remain closed to the public.
Assistant United States Attorneys Sarah Quist and Joseph W. Tursi of the Civil Division’s Complex and Defensive Litigation Section are handling this matter.
U.S. Attorney Will Thompson and Law Enforcement Officials to Announce Successful Conclusion of Major Gun Trafficking ProsecutionRead the Press Release
BECKLEY, W.Va. – United States Attorney Will Thompson will join with law enforcement officials on Friday, September 1, 2023, to announce the final outcome in a case that targeted the illegal trafficking of over 140 firearms from the Beckley area to Philadelphia, Pennsylvania.
The press conference will follow the final sentencing hearings in the case, scheduled for 11 a.m. and 11:30 a.m. This media advisory will be updated with the time of the press conference upon the completion of both hearings.
Thompson will be joined by officials with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service-Criminal Investigation (IRS-CI), and other law enforcement partners.
WHAT: Announcement of the successful conclusion of United States v. Jones et al (5:22-cr-46).
WHERE: The Robert C. Byrd United States Courthouse and Federal Building, 110 North Heber Street, Beckley.
WHEN: Friday, September 1, 2023. Time TBA.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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U.S. Attorney Charges 40-Year-Old Man with Coercion and Enticement of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Melvin Padilla, the Chief of the Bedford Police Department, announced the arrest of JOHN LORD. LORD is charged with persuading, inducing, enticing, and coercing a 15-year-old minor to engage in sexual activity. LORD was presented yesterday before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court.
U.S. Attorney Damian Williams said: “This case underlines the urgent need for law enforcement to continue its efforts to protect children from those who prey on them. As this arrest shows, we will use every tool available to law enforcement to investigate and prosecute those who sexually exploit children.”
FBI Assistant Director in Charge James Smith said: "Lord’s alleged actions, enticing a vulnerable member of our society – a child – for sexual activity, are abhorrent. The FBI takes the alleged crime very seriously, we are tireless in our efforts to investigate and hold accountable any person who harms a child.”
Bedford Police Chief Melvin Padilla said: “The safety and security of our residents is our primary focus, and thanks to the diligent work of our officers and the cooperation and assistance from our federal partners, the defendant was quickly identified and apprehended.”
According to the Complaint filed on August 31, 2023, in White Plains federal court:[1]
On or about August 30, 2023, LORD persuaded and enticed a 15-year-old minor (“Victim-1”), who he had met and communicated with on an online application, to engage in sexual activity with him.
On August 30, 2023, LORD sent text messages to Victim-1 asking to meet to engage in sexual activity. Hours later, LORD was discovered with Victim-1 in a wooded area in Katonah, New York. LORD was naked from the waist down with his penis exposed. Victim-1 was in his underwear. When approached, LORD grabbed his underwear and fled.
Later that evening, LORD was apprehended and arrested by the Putnam County Sheriff’s Office with assistance from the Bedford Police Department. LORD was interviewed by Bedford Police and admitted that he engaged in sexual activity with Victim-1 on August 30, 2023, as well as on prior occasions. On August 30, 2023, LORD was charged in Bedford, New York, with Criminal Sexual Act in the Third Degree.
Mr. Williams stated that the investigation is ongoing. Mr. Williams requests that any individuals who may have encountered JOHN LORD or whose children may have had any communications with LORD to contact the FBI at 1-800-CALL-FBI or tips.fbi.gov.
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LORD, 40, of Sedona, Arizona, is charged with one count of coercion and enticement, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the efforts of the FBI’s Westchester County Safe Streets Task Force, the Bedford Police Department, the Putnam County Sheriff’s Office, and the Westchester County District Attorney’s Office in connection with this investigation. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Shaun E. Werbelow is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Lord ComplaintThree St. Louis Area Residents Accused of Pandemic FraudRead the Press Release
ST. LOUIS – The final defendant of three indicted in July and accused of defrauding pandemic assistance programs appeared in court Thursday to plead not guilty to charges.
Shanay Bolden, 32, of Florissant, Shonta Woods, 38, of St. Louis County, and Ashley Luckett, 32, of St. Louis, were each indicted July 12 on one count of wire fraud conspiracy and two counts of wire fraud. Bolden faces an additional wire fraud count.
Woods appeared in U.S. District Court in St. Louis Thursday, where she pleaded not guilty. Bolden pleaded not guilty July 27 and Luckett pleaded not guilty July 14.
The indictment alleges two fraudulent schemes. In the first, Bolden submitted at least eight applications to Missouri’s State Assistance for Housing Relief Program, which was intended to aid renters and landlords during the COVID-19 pandemic, the indictment says. Bolden falsely claimed to be a landlord and paid Woods to electronically submit the applications, then paid kickbacks to Woods and her purported tenants, the indictment says. In addition to the kickbacks, Bolden spent part of the $126,500 she received in the scheme on personal items, including purchases that she made at Saks Fifth Avenue, the indictment says.
Woods submitted more than 12 fraudulent rental assistance applications on behalf of Bolden, Luckett and herself, the indictment says, receiving tens of thousands of dollars in return. At least two were submitted on behalf of Luckett, who received $20,400, the indictment says.
The second scheme alleged in the indictment involved the Paycheck Protection Program, which was aimed at helping small businesses and their employees. Bolden falsely claimed to own a lawn services company and Luckett falsely claimed to own a catering company, receiving PPP loans of $18,750 and $20,107 respectively, the indictment says.
Each charge is punishable by up to 20 years in prison, a $250,000 fine, or both prison and a fine.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Texas man pleads guilty to posting 2020 election-related threats to Georgia officialsRead the Press Release
ATLANTA - A Texas man has pleaded guilty to posting a message online threatening several Georgia public officials following the 2020 election.
“All across this country our fellow citizens and neighbors, including many retirees, choose to serve as elections officials, poll workers, and in other capacities to help ensure free and fair elections in the United States. They serve out of a patriotic duty and appreciation for our nation and deserve to do so without fear of retaliation or threats of violence,” said U.S. Attorney Ryan K. Buchanan. “Stark threatened officials working at all levels of the election process including elected office holders and a volunteer poll worker. His egregious conduct placed our democracy in jeopardy, striking at the heart of the process we assume to be insulated from such attacks. Our office will remain steadfast in partnering with federal, state, and local authorities to safeguard those who work to secure our elections.”
“This case marks another destructive example of threats of violence to the election community and law enforcement,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department will not tolerate the criminal targeting of the men and women responsible for administering our elections and ensuring that every eligible voter has the opportunity to exercise the most fundamental right in our democracy: the right to vote.”
“This guilty plea plainly shows that anyone who threatens election officials online will be investigated by the FBI and held accountable for their words” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We must take calls to violence seriously, whatever their form, especially when they have the potential to result in physical harm and undermine the integrity of U.S. elections.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Around Jan. 5, 2021, Chad Christopher Stark posted a message to Craigslist entitled, “Georgia Patriots it’s time to kill [Official A] the Chinese agent - $10,000.” The message included the following: “It’s time to invoke our Second Amendment right it’s time to put a bullet in the treasonous Chinese [Official A]. Then we work our way down to [Official B] the local and federal corrupt judges. It’s our duty as American Patriots to put an end to the lives of these traitors and take back our country by force. . . . If we want our country back we have to exterminate these people. One good loyal Patriot deer hunter in camo and a rifle can send a very clear message to these corrupt governors.. milita up Georgia it’s time to spill blood…. we need to pay a visit to [Official C] and her family as well and put a bullet her behind the ears. Remember one thing local law enforcement the key word being local….. we will find you oathbreakers and we’re going to pay your family to visit your mom your dad your brothers and sisters your children your wife… we’re going to make examples of traitors to our country… death to you and all you communist friends.”
Chad Christopher Stark, 55, of Leander, Texas, pleaded guilty to one count of a sending a threat using a telecommunications device. A sentencing date has not yet been set.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
The FBI is investigating this case.
Assistant U.S. Attorney Brent Alan Gray and Sean F. Mulryne, Director of Enforcement & Litigation in the Election Crimes Branch of the DOJ Criminal Divison’s Public Integrity Section, are prosecuting the case.
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.
Terrebonne Parish Man Sentenced on Violations of the Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – TATUM DARDAR, 26, from Terrebonne Parish, was sentenced on August 31, 2023 to 33 months imprisonment, 2 years supervised release, and a $200 mandatory special assessment fee by U.S. District Judge Eldon E. Fallon, after pleading guilty to a two count superseding bill of information which charged him with conspiracy to distribute and possess with intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C) and possession with intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to court documents, DARDAR took part in a conspiracy to distribute methamphetamine throughout Terrebonne Parish and surrounding areas for over a year. Agents with the Drug Enforcement Administration recovered telephone calls between DARDAR and a known conspirator where they discussed their narcotics trafficking. Agents also arrested DARDAR after a traffic stop wherein a distributable amount of methamphetamine was located within the interior of his vehicle.
This case was investigated by the U.S. Drug Enforcement Administration, the Terrebonne Parish Sheriff’s Office, the Louisiana State Police, and the Houma Police Department. The prosecution was handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Sturgis Woman Sentenced to 14 Years in Federal Custody for Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Sturgis, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine). The sentencing took place on August 28, 2023
Devan McKenzie, 27, was sentenced to 14 years in federal prison, followed by five of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McKenzie was indicted for three counts of Conspiracy to Distribute a Controlled Substance (methamphetamine, heroin, and fentanyl) by a federal grand jury in December of 2021. She pleaded guilty on April 14, 2023.
Beginning around February of 2020, McKenzie began selling controlled substances with Brook and Dustin Staeffler. The group made arrangements to obtain the drugs in Colorado and then transport them to South Dakota. McKenzie transported the substances on several occasions and recruited her own sub-distributors to further sell the drugs in the Rapid City area. Overall, the conspiracy was responsible for at least 1.29 kilograms of methamphetamine, 857.5 grams of fentanyl, and 860.5 grams of heroin. During the investigation, law enforcement executed search warrants at McKenzie’s residence, and located drugs and items indicating she was actively engaged in selling illegal substances.
This case was investigated by the Unified Narcotics Enforcement Team, which is local a drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
McKenzie was immediately remanded to the custody of the U.S. Marshals Service.
St. Louis Man Admits Fatally Shooting Another over a Drug DebtRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri on Friday admitted fatally shooting someone who was trying to collect a drug debt.
Terrell Donta McDaniel, 41, pleaded guilty in front of U.S. District Judge Sarah E. Pitlyk to one count of conspiracy to distribute and possess with the intent to distribute fentanyl and one count of discharge of a firearm during a drug trafficking crime.
In the plea agreement and in court, McDaniel admitted agreeing to sell 10 grams of fentanyl to Andre Nash on Nov. 2, 2022 for $500. But McDaniel did not give Nash the full amount of fentanyl that he paid for, and Nash began looking for McDaniel to collect the debt.
When Nash learned McDaniel was staying at a vacant house in the 4100 block of Clara Place, he went there and entered the house. McDaniel shot Nash twice in the chest and once in the face, killing him.
McDaniel and several others wrapped Nash’s body in tarps and plastic and placed him in the trunk of a stolen car, dumping the body in the 5900 block of St. Louis Avenue after dark that day. The body was discovered the next morning.
McDaniel is scheduled to be sentenced November 29.
The fentanyl conspiracy charge carries a penalty of up to 20 years in prison, a $1 million fine, or both. The discharge of a firearm charge is punishable by a sentence of up to life in prison, a $250,000 fine, or both.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI.
St. Louis County Mother, Son Accused of Disability FraudRead the Press Release
ST. LOUIS – A St. Louis County, Missouri mother and her son were indicted this week in U.S. District Court in St. Louis and accused of defrauding the Supplemental Security Income Program with false claims of a mental disability.
Gino Rives, 35, of Edmundson, appeared in court Friday and pleaded not guilty to one count of conspiracy to commit mail and wire fraud, five counts of wire fraud and five counts of theft of government funds. His mother, Zella Rives, 57, also of Edmundson, appeared in court Thursday and pleaded not guilty to the same charges, with the addition of one count of making a false statement.
The indictment alleges that from May 11, 2010 to August 30, 2023, the Rives defrauded the Social Security Administration’s Supplemental Security Income Program out of more than $88,000 by falsely claiming that Gino Rives had mental disabilities and had little or no income or resources. They claimed he had never worked, owned nothing, couldn’t drive and was unable to pay bills or use a bank account, the indictment says.
They concealed Gino Rives’ construction and tree trimming work, his mixed martial arts career, a 2009 conviction for financial exploitation of the elderly, his ownership of vehicles and homes and receipt of $721,000 worth of checks from an elderly individual, “A.B.,” before her death in April of 2023.
Gino Rives was charged in a separate indictment in April with one count each of access device fraud and fraudulently effecting transactions after being accused of fraudulently using A.B.’s credit card to purchase $4,788 in Southwest Airline tickets. He pleaded not guilty to those charges.
The conspiracy and wire fraud charges each carry a potential penalty of up to 20 years in prison, a $250,000 fine, or both. The charge of making a false statement is punishable by up to five years in prison, a $250,000 fine, or both, and the theft of government funds charge is punishable by up to 10 years in prison and the same fine.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Six Oklahomans Charged with Cares Act FraudRead the Press Release
OKLAHOMA CITY – Earlier this week, a criminal indictment was unsealed charging six Oklahoma residents with fraudulently obtaining nearly $1 million in Paycheck Protection Program (PPP) loans, announced U.S. Attorney Robert J. Troester.
On August 16, 2023, a federal grand jury returned a sealed, 28-count indictment against MARQUITA DESHAWN SHAW, 39, and AMIE STREET, 39, both of Lawton, Oklahoma, and COREY DONTA SHAW, 40, ERIC DEWAYNE SHAW, 38, MARQUS DEJUAN SHAW, 39, and SHATARA MARIE BREVELLE, 38, from Oklahoma City, Oklahoma. The indictment charges conspiracy to commit wire fraud, wire fraud, money laundering, making false statements to a financial institution, making false statements, and false representation of a social security number. The indictment was unsealed on August 29, 2023. All defendants, except Corey Shaw, have been arrested and released on conditions. A warrant has been issued for Shaw and he is considered a fugitive.
The indictment alleges that the defendants conspired to submit false and fraudulent loan applications through the PPP loan program. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided more than $2 trillion in relief for individuals and businesses adversely affected by the COVID-19 pandemic. The CARES Act also authorized the Small Business Administration to create the PPP to promote lending to small businesses affected by the pandemic for job retention and certain other expenses.
The indictment alleges the defendants created fictitious businesses and made numerous false and misleading statements about those businesses for the purpose of obtaining PPP loans. In support of the fraudulent loan applications, the defendants conspired to submit fake and altered documents, including altered and fictitious bank statements, identification documents, and tax records. The indictment further alleges that MARQUITA DESHAWN SHAW created fictitious identities to fraudulently obtain additional PPP loan proceeds that she subsequently transferred into bank accounts that she controlled. She is also charged with making false statements about her finances in applications for Housing and Urban Development housing benefits.
“Our advanced analytic tools make it possible for the Pandemic Response Accountability Committee (PRAC) data scientists and the PRAC Fraud Task Force to uncover complex fraud schemes in millions of rows of data,” said Steve Hanson, manager of the PRAC Fraud Task Force. “Through coordination and innovation, we're able to identify clusters of fraud where egregious cases of theft occurred, ensuring that those who stole pandemic relief funds are held accountable.”
“In the midst of unprecedented economic hardship experienced by so many during the pandemic, there are those who opted to take advantage of the aid offered through lies and deceit,” said U.S. Attorney Robert J. Troester. “My office will aggressively pursue those who wrongfully take advantage of government assistance and taxpayer funds.”
As part of the PRAC Task Force, this investigation was conducted by the PRAC, along with their law enforcement partners with the Social Security Administration (SSA)-Office of Inspector General (OIG), Small Business Administration (SBA)-OIG, U.S. Agency for International Development (USAID)-OIG, U.S. Department of Housing and Urban Development (HUD)-OIG, Internal Revenue Service (IRS)-Criminal Investigations (CI), U.S. Postal Inspection Service, Oklahoma State Bureau of Investigation, Lawton Police Department, Oklahoma City Police Department, and the Mid-States Organized Crime Information Center (MOCIC), Springfield, MO.
The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the PPP, and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
The case is being prosecuted by Assistant U.S. Attorneys Danielle London and William Farrior.
The public is reminded these charges are merely accusations and that each defendant is presumed innocent unless proven guilty. Reference is made to court filings for further information.
Second Texas men pleads guilty in case involving faulty military partsRead the Press Release
COLUMBUS, Ohio – Two Texas men are convicted of crimes related to providing faulty parts to the U.S. military.
Philip R. Huddleston, 58, of Ft. Worth, Texas, pleaded guilty in U.S. District Court here today.
Since 2013, Huddleston was a civilian employed as a quality assurance specialist at the Defense Contract Management Agency. Since 2018, Huddleston also co-owned WM Industries, a DoD contractor in Beaumont, Texas, who sold and supplied a variety of military parts to the DoD.
Huddleston co-owned the DoD parts business with Gregory Gotreaux, 56, of Beaumont, Texas, who is also convicted in this scheme.
According to court documents, Huddleston and Gotreaux conspired to supply the United States with unapproved and substituted parts on 41 orders totaling at least $704,000.
Specifically, from November 2019 through September 2021, Huddleston and Gotreaux provided nonconforming parts used in various U.S. military defense and weapons systems. The defendants were paid by the Defense Finance and Accounting Service (DFAS) located in Columbus.
The two men pleaded guilty to wire fraud and engaging in monetary transactions in criminally derived property.
Parties involved with Huddleston’s plea agreement have recommended a sentence of 24 to 37 months in prison.
The defendants have agreed to pay $706,000 in restitution, which includes approximately $2,100 for testing costs to the Department of Defense.
Sentencing of the defendants take place at future hearings and will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigative Service (DCIS); Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); announced the guilty pleas. Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.
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Second Defendant Sentenced to 18 Months in Prison for Role in Conspiracy to Make a Destructive DeviceRead the Press Release
Richland, Washington – August 31, 2023, United States District Judge Mary K. Dimke sentenced Connor Goodman to 18 months in the custody of the United States Bureau of Prisons, to be followed by a three-year term of court supervision after he is released from federal prison. Goodman was sentenced today after having plead guilty on March 16, 2023, to Conspiracy to Make an Unregistered Destructive Device. In fashioning an appropriate sentence, District Judge Dimke considered the seriousness and dangerousness of Goodman and his co-defendant’s, Daniel Anderson, actions.
Goodman’s plea and sentence stemmed from a several months long investigation into a group of individuals that advocated for the use of violence against perceived government overreach. During the investigation, co-defendant Anderson solicited explosive material from members of the group. In response, Goodman purchased fireworks which were provided to Anderson for the construction of an explosive device. Subsequently, in December 2021, the FBI and other law enforcement agencies executed search warrants at Anderson and Goodman’s residences. Following the search warrant execution at Anderson’s residence, special agents located a small fully constructed destructive device. Also located at Goodman’s residence were multiple firearms, including a sawed-off shotgun.
On March 23, 2023, Anderson plead guilty to Conspiracy to Make an Unregistered Destructive Device. On August 17, 2023, Anderson was sentenced to 12 months and 1 day in prison, followed by three years of court supervision.
“As the U.S. Attorney, I will not tolerate any efforts to threaten or target public servants dedicated to protecting and supporting our community. Mr. Goodman bought materials for the explicit purpose of constructing an explosive device that presented a very real danger. I commend the FBI and their law enforcement partners, who identified this conspiracy and who serve diligently to keep our country and communities safe and strong.”
“Mr. Goodman and his co-conspirator took active steps to further their ideology through violence” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Fortunately, our Joint Terrorism Task Force was able to disrupt their activities before they could injure or kill anyone with their destructive device. I thank the investigators and partners who work tirelessly on the JTTF, the Eastern District of Washington US Attorney’s Office, and urge the public to remain vigilant for those who would use violence to advance an agenda.”
The case was investigated by the FBI’s Seattle Field Office, Inland Northwest Joint Terrorism Task Force (“INJTTF”). This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
4:22-CR-06001-MKD-2
Second Bvi Man Charged in the Same Week with Alien SmugglingRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Kamoy King, 26, of Tortola, BVI, was charged on August 31, 2023, with bringing illegal aliens to the United States for private financial gain. King is the second BVI man charged this week with alien smuggling.
According to court documents, on August 30, 2023, at approximately 9:00 p.m., U.S. Customs and Border Protection Air and Marine Operations agents were patrolling United States waters when they observed a vessel operated by King enter Haulover Bay, St. John. The vessel did not display any navigational lights as required by law. Agents attempted to stop the vessel by activating their blue police lights and sirens, but King refused to stop the vessel. King eventually complied after agents fired flare warning shots and was taken into custody. U.S. Border Patrol agents stationed at the Haulover Bay trail later discovered four illegal aliens hiding on the beach. Neither King nor the four individuals found on the beach could produce any legal documentation that authorized their presence in the United States.
This case is being investigated by Department of Homeland Security, U.S. Customs and Border Protection Air and Marine Operation, and U.S. Border Patrol and prosecuted by Assistant United States Attorney Kyle Payne.
United States Attorney Delia L. Smith reminds the public that a complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ringleader and Key Co-Defendant Sentenced to Prison for Leading Beckley-to-Philadelphia Firearms Trafficking ConspiracyRead the Press Release
BECKLEY, W.Va. – Bisheem Jones, also known as “Bosh,” 37, of Philadelphia, Pennsylvania, was sentenced today to 25 years in prison, to be followed by three years of supervised release, for leading a scheme to traffic over 140 firearms from southern West Virginia to Philadelphia. Shyheem Woodard-Smith, also known as “Peanut” and “Nut,” 23, of Philadelphia, was also sentenced today to five years in prison, to be followed by three years of supervised release, for his key role in the gun trafficking conspiracy.
A federal jury found Jones guilty after evidence at trial proved he oversaw a conspiracy that recruited straw purchasers in the Beckley area to buy firearms that Jones and his co-conspirators took back to Philadelphia to sell for profit. Jones was convicted of interstate travel with the intent to deal in firearms without a license, conspiracy to travel interstate with the intent to deal in firearms without a license and conspiracy to commit money laundering on December 16, 2022, after five days of trial.
From in and around June 2020 to in and around July 2021, Jones and his co-conspirators trafficked over 140 firearms. Over 50 of the firearms were recovered at crime scenes primarily in Philadelphia and were connected to two homicides, crimes of domestic violence, and other violent offenses.
“Bisheem Jones brought deadly and tragic results to the streets of Philadelphia and elsewhere,” said United States Attorney Will Thompson. “Today’s sentence reflects the harm Jones caused and offers a warning to others who seek to traffic in firearms illegally and bring violence to our communities.”
Jones selected the firearms the straw purchasers bought and provided the money to purchase them. Jones also paid the straw purchasers with money or drugs to buy the firearms. The straw purchasers falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that they were the buyers of the firearms when they knew they were purchasing them for Jones and his interstate gun trafficking conspiracy.
“ATF’s mission is to protect the public by keeping firearms out of the hands of violent criminals,” said ATF Special Agent in Charge Shawn Morrow of the Louisville Division, which includes West Virginia. “One of the ways we accomplish our mission is by identifying the sources of crime guns and taking swift action before those firearms can be used to cause harm. This case demonstrates how criminals illegally acquire firearms, and how ATF and our law enforcement partners work together to disrupt these networks. I commend the investigative team and the United States Attorney’s Office for their diligent work and for their commitment to keeping our communities safe.”
The federal money laundering statutes Jones violated served to significantly increase his federal prison sentence. This investigation is unique in that agents were able to identify financial transactions that promoted Jones’ firearms trafficking enterprise and violated federal money laundering statutes. In particular, from approximately June 2020 to approximately July 2021, Jones used peer-to-peer payment apps to transfer money to various individuals in Philadelphia and Beckley. Those funds were ultimately used to purchase firearms in the Southern District of West Virginia. The firearms were then transported from Beckley to Philadelphia, where they were sold for a profit. That money was used to purchase more firearms in the Beckley area. Jones used his bank account to pay the straw purchasers and deposit proceeds from selling the firearms in Philadelphia.
“The investigative prowess of IRS Criminal Investigation special agents and our law enforcement partners disrupted the financial flow of funds supporting illegal firearms trafficking,” said Acting Special Agent in Charge Kareem A. Carter of the Washington, D.C. Field Office. “IRS-CI is committed to the dismantling of criminal networks that pose a threat to public safety.”
Woodard-Smith played an instrumental role in the firearm trafficking conspiracy, traveling from Philadelphia to Beckley with Jones to oversee the purchase of firearms at Beckley-area stores. Woodard-Smith also encouraged his fellow traffickers to obliterate the serial numbers of the firearms before putting them on the street.
Woodard-Smith pleaded guilty to interstate travel with the intent to engage in dealing firearms without a license. Woodard-Smith is among 18 defendants who pleaded guilty in connection with the firearms trafficking. Jones and Woodard-Smith are the final defendants to be sentenced. Other convicted defendants include:
- Denise Johnson, 26, of Beckley, sentenced to three years and 10 months in prison for conspiracy to travel interstate with the intent to engage in dealing firearms without a license;
- Donte Webster, 23, of Beckley, sentenced to two years and nine months in prison for making false statements in acquisition of firearms;
- Derrick Woodard, also known as “D,” 27, of Philadelphia, sentenced to two years in prison for interstate travel with the intent to engage in dealing firearms without a license;
- Terri Lawhorn, 29, Fayetteville, sentenced to two years in prison for making false statements in acquisition of firearms;
- Hassan Abdullah, also known as “San,” 28, of Philadelphia, sentenced to one year and six months in prison for interstate travel with the intent to engage in dealing firearms without a license;
- Maurice Johnson, 37, of Mount Hope, sentenced to one year in prison for interstate travel with the intent to engage in dealing firearms without a license; making false statements in acquisition of firearms; and
- Brandon Lawson, 33, Oak Hill, sentenced to nine months in prison for transferring a firearm to an out-of-state resident.
United States District Judge Frank W. Volk imposed the sentences.
Thompson commended the excellent investigative work by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service-Criminal Investigation (IRS-CI), and the Philadelphia Police Department. Thompson also commend Assistant United States Attorneys Negar M. Kordestani and Steve Loew and the office’s trial team.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-46.
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Readout of the Justice Department’s Engagement with Two Ukrainian Delegations to Strengthen Anti-Corruption Efforts and Serve Victims and Witnesses of CrimeRead the Press Release
From Aug. 28 to Aug. 31, the leadership of Ukraine’s three anti-corruption bodies met with Justice Department officials in Washington, D.C. Their visit was sponsored by the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL). Separately, Department officials met with a delegation from the Victim and Witness Coordination Centre of the Ukrainian’s Prosecutor General’s Office, in a visit that was also funded by INL.
On Wednesday, Attorney General Merrick B. Garland welcomed to the Justice Department the anti-corruption delegation, which was led by the National Anti-Corruption Bureau (NABU) Director Semen Kryvonos, Specialized Anti-Corruption Prosecutor’s Office (SAPO) Chief Prosecutor Oleksandr Klymenko, and High Anti-Corruption Court (HACC) Chief Justice Vira Mykhailenko. They were accompanied by the Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) Resident Legal Advisor at U.S. Embassy Kyiv Jared Kimball, who is providing guidance, case-based mentoring, and capacity building to SAPO and NABU.
AG Garland with (l to r) DAAG and Counselor to AG for International Affairs Bruce Swartz; SAPO Chief Prosecutor Oleksandr Klymenko, NABU Director Semen Kryvonos, HACC Chief Justice Vira Mykhailenko and Resident Legal Advisor Jared Kimball.
The anti-corruption delegation met with Criminal Division leadership including Deputy Assistant Attorney General and Counselor for International Affairs Bruce C. Swartz, OPDAT leadership, the Justice Department’s Office of International Affairs (OIA), the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Task Force KleptoCapture leadership. They also met with FBI Director Christopher Wray and the FBI’s Criminal Investigative Division.
The meetings provided an opportunity to demonstrate the United States’ unwavering support and confidence in their critical work in targeting high-level corruption, strengthening cooperation on financial investigations, and understanding what challenges they are facing and how the Department can help. The partnership includes facilitating communication with Ukrainian agencies on U.S. and Ukrainian cases involving corrupt actors and seized assets and working with OIA to improve the Mutual Legal Assistance process for both parties.
The Department reaffirmed its full commitment to support the independence of these anti-corruption institutions through technical support and capacity building provided by the Resident Legal Advisor in Kyiv and other Department expertise.
On Tuesday, Criminal Division Deputy Assistant Attorney General Anjali Chaturvedi and representatives of the Department’s War Crimes Accountability Team, based in the Criminal Division’s Human Rights and Special Prosecutions Section, and representatives of the Justice Department’s Office of Victims of Crime, Office on Violence Against Women, National Security Division’s Office of Justice for Victims of Overseas Terrorism, and U.S. Attorney’s Office for the District of Columbia met at the Department with a delegation from the Victim and Witness Coordination Centre that was recently created in the Office of the Prosecutor General of Ukraine. Attorney General Garland welcomed the delegation and focused on the importance of supporting Ukrainian victims. The head of the Centre, Dr. Veronika Plotnikova, led discussions for the delegation. Following the meeting, the delegation visited the U.S. Attorney’s Office for the District of Columbia to learn more about how the Department supports crime victims and witnesses. The delegation also met with representatives of the FBI’s Victim Services Division.
AG Garland with Dr. Veronika Plotnikova and other members of DOJ, INL the Ukraine Prosecutor General’s Office, and Ukrainian Embassy.
Earlier this year, Attorney General Garland met Prosecutor General (PG) Andriy Kostin and discussed the matter of supporting victims and witnesses of crime. In February, PG Kostin met with some of the Justice Department’s top victim witness support experts. The Centre was subsequently created by PG Kostin on April 11.
Department officials offered expertise and support to enhance the implementation of mechanisms in Ukraine to assist victims and witnesses during the criminal justice process as Ukraine investigates and prosecutes Russian war crimes and other atrocities.
The Department of Justice is proud to stand by our Ukrainian law enforcement partners in their courageous and crucial work and looks forward to continuing to assist in any way we can.
Rapid City Man Sentenced to 10 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Receipt of Child Pornography and Possession of Child Pornography. The sentencing took place on August 29, 2023.
Nathan David Hankins, 30, was sentenced to two 10-year terms in federal prison, to run concurrently. Hankins’ federal custody time will run consecutively with a previously imposed state custody sentence. Hankins was also sentenced to lifetime supervised release and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Hankins was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in December of 2019. He was convicted at a court trial on March 23, 2023.
Hankins was federally indicted following a Cybertip from the National Center of Missing and Exploited Children in relation to a download of child pornography from Hankins’ Google account. The Internet Crimes Against Children Taskforce executed a search warrant on Hankins’ residence and located several devices. A forensic examination of those devices found hundreds of images of child pornography.
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 Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Hankins was immediately remanded to the custody of the U.S. Marshals Service.
Owner of Oregon Payroll Services Company Pleads Guilty to Employment Tax SchemeRead the Press Release
An Oregon man pleaded guilty today to willfully failing to pay more than $24 million in payroll taxes owed to the IRS.
According to court documents and statements made in court, Robert Kohnle of Lake Oswego, was the president, secretary, and chief executive officer of Real Benefits Group Inc., dba Aliat. As a professional employer organization, Aliat provided payroll and payroll-related services for its clients. Aliat was responsible, pursuant to service agreements with its clients, for receiving the payroll taxes withheld from the wages of clients’ employees, including federal income and Social Security and Medicare taxes, and paying those payroll taxes to the IRS.
Beginning in the fourth quarter of 2016 through the fourth quarter of 2022, Kohnle received payroll withholdings from Aliat’s clients but did not pay it over to the IRS as required by the client service agreements. Kohnle instead used the money to pay Aliat’s other expenses and creditors, including himself. In total, Kohnle caused a tax loss to the IRS of $24,816,602.
Kohnle is scheduled to be sentenced on Jan. 8, 2024, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Natalie K. Wight for the District of Oregon made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Patrick Burns and Regina Jeon of the Justice Department's Tax Division are prosecuting the case.
Owner of Kansas Metal Company Pleads Guilty to Employment Tax SchemeRead the Press Release
A Kansas man pleaded guilty today to willfully failing to pay federal employment taxes.
According to court documents and statements made in court, Douglas Furnell of Leawood, was the owner and operator of Western Metal Company, a Louisburg-based manufacturer of custom metal products. As such, he was responsible for paying over to the IRS the federal income and Social Security and Medicare taxes withheld from his employees’ wages. From the first quarter of 2015 through the second quarter of 2020, however, Furnell did not timely pay the withholdings to the IRS nor file the requisite quarterly employment tax returns. In total, Furnell caused a tax loss to the IRS of approximately $333,983.
Furnell is scheduled to be sentenced on Dec. 14, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kate E. Brubacher for the District of Kansas made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Erika V. Suhr of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas are prosecuting the case.