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Tuesday 18 July 2023
Bridgeport Fentanyl Trafficker Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that KINSTON CUTHBERTSON, 31, of Bridgeport, pleaded guilty yesterday in New Haven federal court to a fentanyl trafficking offense.
According to court documents and statements made in court, on May 27, 2022, a court-authorized search of Cuthbertson’s residence on Waldorf Avenue in Bridgeport revealed approximately 1.2 kilograms of fentanyl; approximately 380 grams of cocaine; a quantity of crack cocaine; items used to process and package narcotics, including a kilogram press; a money counter; and $10,702 in cash.
Cuthbertson pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on October 6.
Cuthbertson has been detained since his arrest on May 27, 2022.
This investigation is being conducted by the Drug Enforcement Administration, the Connecticut State Police’s Statewide Narcotics Task Force Southwest and Statewide Urban Violence Cooperative Crime Control Task Force, and the Bridgeport Police Department’s Emergency Services Unit. The case is being prosecuted by Assistant U.S. Attorneys Patricia Stolfi Collins.
Automotive Shop Owner Convicted of Conspiracy to Distribute Fentanyl and Marijuana in Hampton RoadsRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Hampton man late Friday afternoon of conspiring to distribute and possess with the intent to distribute fentanyl and marijuana.
According to court records and evidence presented at trial, from approximately September 2019, until his arrest in April 2022, Orlando Roosevelt Adkins, 45, operated and managed Elite Customs, an automotive repair and custom autobody shop in Hampton, Virginia. During this time, this property was used as a drug-involved premises for a drug trafficking conspiracy. Within this conspiracy, the co-conspirators, including Adkins, distributed and possessed quantities of fentanyl and marijuana. The conspirators would purchase and receive drugs from suppliers in Mexico, Texas, California, and North Carolina, and arrange for the drugs to be transported to Virginia using rental vehicles, couriers, postal services, semi-trailers, trucks, and recreational vehicles. According to witnesses, Adkins facilitated the trafficking scheme by maintaining Elite Customs as a central point of operations for the conspiracy and cultivated illicit business relationships among conspirators.
On June 26, 2023, Adkins pleaded guilty to charges of distribution of marijuana, maintaining a drug-involved premises, and two counts of using a communication facility in furtherance of drug trafficking, but denied involvement in any drug trafficking conspiracy. Adkins was tried last week on the remaining conspiracy charge, during which the federal jury found that Adkins was, in fact, part of a drug conspiracy that involved fentanyl and marijuana.
Adkins was convicted of conspiracy to distribute and possess with intent to distribute fentanyl and marijuana and faces a mandatory minimum of 5 years in prison when sentenced on November 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations; Mark G. Solesky, Chief of Chesapeake Police; Orrin Gallop, Interim Chief of Hampton Police; Steve R. Drew, Chief of Newport News Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after U.S. District Judge Jamar K. Walker accepted the verdict.
Assistant U.S. Attorney Peter Osyf and Special Assistant U.S. Attorney Jared Engelking prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-20.
Ashland Man Charged with Sexual Exploitation of a ChildRead the Press Release
JEFFERSON CITY, Mo. – An Ashland, Mo., man has been charged in federal court with Sexual Exploitation of a Child.
Scott Alan Barker, 31, was charged with one count of sexual exploitation of a child in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo., on July 17, 2023. Barker remains in federal custody pending a detention hearing on Thursday, July 20. Copies of the complaint and supporting affidavit are attached.
The charge contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley Turner. It was investigated by Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Armed Bank Robber Is Sentenced to More Than 11 YearsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Franklin Earl Lawrence, Jr., 50, of Gastonia, N.C., to 141 months in prison followed by three years of supervised release for bank robbery and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Chief Trent Conrad of the Gastonia Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, on August 19, 2021, Lawrence robbed at gunpoint the Truist bank branch located at 3070 Union Road in Gastonia. Court records show that Lawrence entered the bank wearing a hat, wig, and glasses, approached a teller, pointed his loaded firearm at the teller and demanded money. After the teller complied, Lawrence turned to a second teller, pointed his firearm at her and demanded more money. The teller handed her cash over to Lawrence and the defendant fled the scene. Officers with the Gastonia Police Department tracked Lawrence at a nearby field. When the officers approached Lawrence, the defendant threw his firearm at the direction of one of the officers before he was arrested. At the time of the arrest, officers recovered from Lawrence’s fanny pack the shirt, hat, wig and glasses Lawrence wore during the robbery, as well as a loaded pistol and the money the defendant stole from the bank.
On February 24, 2022, Lawrence pleaded guilty to bank robbery and brandishing a firearm during, and in relation to, and in furtherance of a crime of violence. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The FBI and the Gastonia Police Department investigated the case. Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville 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. In 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.
Appleton Man Sentenced to Federal Prison for Armed StandoffRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin,
announced that on July 17, 2023, Senior United States District Judge William C. Griesbach sentenced Torey D. Robinson (Age: 37) to a total sentence of five years’ imprisonment and three years of supervised release for an armed standoff that occurred in Appleton, Wisconsin.
According to court documents, on April 10, 2023, Robinson approached Appleton Police Department officers and asked what kind of body armor they were wearing. Less than one hour later, officers were dispatched to a report of gunshots near Robinson’s residence. After arriving on scene, officers heard shots coming from Robinson’s residence, and they later observed him walk out of the residence with a rifle. A shelter-in-place order was given, and SWAT teams and crisis negotiators were called to the scene. After a standoff that lasted approximately five hours, Robinson was taken into custody.
At the scene, officers located a Diamondback Firearms DB-15 rifle and numerous rounds of ammunition. Robinson, as a convicted felon, was prohibited from possessing firearms or ammunition.
The Appleton Police Department investigated the case, which Assistant United States Attorney Alexander E. Duros prosecuted in United States District Court.
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Ansonia Man Sentenced to Federal Prison for Stealing and Selling Catalytic ConvertersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that FRANCISCO AYALA, 22, of Ansonia, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 30 months of imprisonment, followed by three years of supervised release, for offenses related to his participation in a stolen catalytic converter trafficking ring.
According to court documents and statements made in court, this matter stems from an investigation into the coordinated theft of catalytic converters from motor vehicles across Connecticut. A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a desirable target for thieves. The average scrap price for catalytic converters currently varies between $300 and $1,500, depending on the model and type of precious metal component.
The investigation revealed that Ayala engaged in numerous catalytic converter thefts throughout Connecticut, and he was caught on surveillance video stealing converters from two vans at a business in Stratford on March 9, 2022. Between December 2021 and May 2022, Ayala and an associate sold approximately $150,000 worth of stolen catalytic converters to a co-conspirator who transported the converters to other businesses, including businesses in New York and New Jersey, for further resale and profit.
On April 4, 2023, Ayala pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property, and one count of interstate transportation of stolen property.
Ayala has been detained in state custody for unrelated theft offenses since May 2022.
This investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and A. Reed Durham.
Amarillo Man Sentenced to 11+ Years in Prison for Use of WMDRead the Press Release
An Amarillo man who set off a bomb in his backyard, stashed a suicide vest in his alleyway, and privately plotted to blow up a local high school was sentenced today to more than 11 years in federal prison on a weapons of mass destruction (WMD) charge, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Erfan Salmanzadeh, a 34-year-old naturalized citizen of the U.S. born in Iran, was charged via criminal complaint in July 2021 and indicted the following month. He pleaded guilty in December 2022 to use and attempted use of a weapon of mass destruction and was sentenced today to 135 months in prison by U.S. District Judge Matthew J. Kacsmaryk.
“This defendant stashed a highly volatile substance inside his home, putting his whole neighborhood at risk. Moreover, he apparently contemplated using it to inflict violence on a local school,” said U.S. Attorney Leigha Simonton. “The Justice Department is always alert for this type of threat. We urge the community to partner with us by reporting suspicious behavior to law enforcement so that we can swiftly address any potential danger.”
“The FBI would like to thank the Amarillo Police Department, the North Texas Joint Terrorism Taskforce, Homeland Security Investigations, the Texas Department of Public Safety, Randall County Sheriff’s Office, and the Amarillo Fire Department for partnering with us on this investigation,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “Today’s sentence holds the defendant accountable for possessing a device with the potential to cause significant damage and harm innocent people. Intervention from concerned neighbors allowed us to move quickly and prevent a violent attack. We ask that the public continue to remain vigilant and report suspicious activity to law enforcement.”
According to plea papers, Mr. Salmanzadeh admitted to law enforcement that he used homemade triacetone triperoxide (TATP) to blow up an Xbox in his back yard on July 26, 2021. At the time, he claimed he wanted to see how much damage such an explosion would cause.
He further admitted that after law enforcement arrived at the home to investigate the explosion – which was reported by neighbors who heard the blast – he flushed a gallon-sized jar of TATP powder down the toilet and concealed a suicide vest and a nail bomb in a dumpster in his alleyway.
According to plea papers, bomb technicians collected residual TATP – an extremely unstable explosive that reacts violently to friction and shock – from the defendant’s porcelain toilet bowl. They also discovered TATP residue on a white PVC pipe hidden in his bedroom closet. Officers recovered the suicide vest, which contained several sewn pockets filled with red cylindrical taped tubes labeled “dynamite,” and nail bomb from the dumpster.
Law enforcement later reviewed his electronic devices, including a video Mr. Salmanzadeh recorded on July 22, 2021, threatening to blow up a local high school.
“We are going to blast the school,” he said in Farsi, before displaying the nail bomb filled with shrapnel, the suicide vest filled with pipes labeled dynamite, a suitcase filled with container labeled explosives, and a backpack filled with bottles labeled explosives to the camera.
Officers uncovered several other videos showing Mr. Salmanzadeh conducting test explosions and several journals that contained notes and formulas related to the production of explosives.
In plea papers, Mr. Salmanzadeh admitted he used the internet to conduct all the research he needed to construct TATP and WMD. He also admitted he used the internet to purchase a plane ticket to California on July 28, 2021, to avoid detection by law enforcement after a bombing.
The Federal Bureau of Investigation’s Dallas Field Office and the Amarillo Police Department conducted the investigation with the assistance of the North Texas Joint Terrorism Taskforce, Homeland Security Investigations, the Texas Department of Public Safety, Randall County Sheriff’s Office, and the Amarillo Fire Department. Assistant U.S. Attorneys Jeffrey Haag and Josh Frausto prosecuted the case with assistance provided by the National Security Division’s Counterterrorism Section.
Albuquerque Man Sentenced to 2 Years in Prison for 5 Bank RobberiesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigations’ Albuquerque Field Office, announced that Jason Smeltzer was sentenced to 27 months in prison. Smeltzer, 41, of Albuquerque, pled guilty to 5 counts of bank robbery on March 22, 2023.
According to court documents, between Jan. 20 and Feb. 23 of 2022, Smeltzer robbed four Albuquerque banks, one of which he robbed twice. On Jan. 21, the FBI received a tip through the National Threat Operation Center identifying Smeltzer as a possible suspect. Following the fifth robbery on Feb. 23, Robbery Detectives from the Albuquerque Police Department initiated surveillance on Smeltzer’s residence and observed Smeltzer wearing clothes consistent with the description given to them by a teller at the bank. When Smeltzer left his residence, APD Detectives initiated a traffic stop and Smeltzer was taken into custody.
Upon his release from prison, Smeltzer will be subject to 3 years supervised release.
The Federal Bureau of Investigations Albuquerque Violent Crimes and Gangs Task Force investigated this case. Assistant United States Attorney Matthew Nelson is prosecuting the case.
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Monday 17 July 2023
Vicksburg Man Sentenced to 10 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. – A Vicksburg man was sentenced to 120 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Maurice Duff, 44, was sentenced in U.S. District Court in Hattiesburg.
According to court records, on January 11, 2021, Duff sold 83.62 grams of pure methamphetamine to a DEA confidential source in Hattiesburg.
Duff was indicted by a federal grand jury on July 19, 2022, for possession with intent to distribute methamphetamine. He pled guilty on February 16, 2023.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorneys Erica Rose and Shundral Cole.
U.S. Departments of Justice and Commerce and the European Commission Reaffirm Shared Values, Welcome Finalized EU-U.S. Data Privacy FrameworkRead the Press Release
Attorney General Merrick B. Garland hosted Secretary of Commerce Gina Raimondo and European Commissioner for Justice Didier Reynders for a meeting at the Justice Department today marking the European Union (EU)’s recognition of the adequacy of the EU-U.S. Data Privacy Framework (DPF).
“The EU-U.S. Data Privacy Framework reflects the strength of the partnership between the United States and the European Union as well as our shared commitment to upholding the rule of law, protecting individual privacy, and keeping the public safe,” said Attorney General Merrick B. Garland. “We are grateful to our European partners for the years of work and cooperation that brought us to this point, and we look forward to continuing our work together to implement these important new data privacy safeguards.”
“The DPF is a testament to the strength of the U.S.-EU relationship, and it reflects our joint commitment to promoting economic opportunity while protecting individual privacy rights,” said U.S. Secretary of Commerce Gina Raimondo. “Now, businesses – large and small – will be able to access a streamlined and affordable mechanism to transfer data between our jurisdictions. To meet the needs of businesses, the Commerce Department launched the DPF program website today, giving companies a one-stop-shop where they can sign up for the DPF program and get important information about its benefits.”
“The EU-U.S. Data Privacy Framework represents a significant achievement for safe and trusted transatlantic data flows,” said European Commissioner for Justice Reynders. “The new framework guarantees the fundamental right of Europeans for the protection of their personal data and brings legal certainty for companies on both sides of the Atlantic. Today’s meeting is the result of months of intense negotiations based on shared values and trust with my U.S. counterparts. It shows the EU and the U.S. are like-minded partners that can work together to find solid solutions to complex issues.”
Last week, the Departments of Justice and Commerce welcomed the European Commission’s adequacy decision for the EU-U.S. Data Privacy Framework, to which President Biden and European Commission President von der Leyen agreed in March 2022. Transatlantic data flows underpin more than $7 trillion in cross-border trade and investment per year and create greater economic opportunities for companies and citizens on both sides of the Atlantic. The DPF will be a valuable tool for businesses of all sizes, including small and medium, that are participating in the transatlantic economy, providing an affordable and straightforward means of transferring personal data consistent with EU law. The adoption of the adequacy decision on July 10 by the European Commission establishes a basis in EU law for the transfer of personal data from EU countries to the United States by businesses in both America and Europe using the DPF. This determination will also facilitate transfers through other EU legal mechanisms, including Standard Contractual Clauses and Binding Corporate Rules. The EU’s adoption of the adequacy decision was made possible by the fulfillment of the commitments the United States made in the EU-U.S. Data Privacy Framework (EU-U.S. DPF), announced by Presidents Biden and von der Leyen in March 2022:
- On Oct. 7, 2022, President Biden issued Executive Order 14086 on Enhancing Safeguards for United States Signals Intelligence Activities, which bolstered an already rigorous array of privacy and civil liberties safeguards for U.S. signals intelligence activities. It also created an independent and binding mechanism enabling individuals in qualifying states, as designated under the Executive Order, to seek redress if they believe their personal data was collected through U.S. signals intelligence in a manner that violated applicable U.S. law.
- Also on Oct. 7, 2022, and pursuant to that Executive Order, Attorney General Garland signed a new regulation establishing a Data Protection Review Court (DPRC). The DPRC will independently review determinations made by the Civil Liberties Protection Officer of the Office of the Director of National Intelligence in response to qualifying complaints sent by individuals through appropriate public authorities that allege certain violations of U.S. law in the conduct of U.S. signals intelligence activities.
- On June 30, Attorney General Garland designated the EU and the three additional countries making up the European Economic Area (EEA) as “qualifying states” – contingent on the adoption of an adequacy decision – for purposes of implementing the redress mechanism established under Executive Order 14086.
- The Office of the Director of National Intelligence confirmed on July 3, that U.S. intelligence agencies have adopted implementing procedures as required by the Executive Order.
U.S. Attorney Thompson to Announce Human Trafficking Training Initiative for Educators and Social WorkersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will hold a press conference on Tuesday, July 18, 2023, at 10 a.m. at the Robert C. Byrd United States Courthouse to announce new training tools to help better identify and report human trafficking and rescue child victims.
The U.S. Attorney’s Office partnered with the West Virginia State Police and the West Virginia Center for Children’s Justice to create training videos specifically for teachers and child protective services workers. Leaders from those organizations will join Thompson for the announcement along with officials from the Federal Bureau of Investigation (FBI), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the West Virginia Department of Education, the West Virginia Board of Education, the West Virginia Department of Health and Human Resources, the West Virginia Fusion Center, and Cabell, Kanawha, Mercer and Wayne county schools.
WHAT: Announcement of new human trafficking training initiative
WHEN: Tuesday, July 18, 2023, at 10 a.m.
WHERE: Robert C. Byrd United States Courthouse, 300 Virginia Street East, Charleston.
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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Two Men Plead Guilty to $67M Medicare Fraud SchemeRead the Press Release
Two Florida men pleaded guilty last week for their roles in a scheme to defraud Medicare by submitting over $67 million in false claims for genetic testing and durable medical equipment that patients did not need and that the defendants procured with kickbacks.
The pleas came after four days of trial in the Southern District of Florida.
According to court documents, Daniel M. Carver, 36, of Boca Raton, owned and managed call centers that he used to conduct deceptive telemarketing campaigns targeting Medicare beneficiaries to solicit them for unnecessary genetic testing and durable medical equipment. Louis “Gino” Carver, 32, of Delray Beach, worked for these call centers and acted as a straw owner for a laboratory that submitted false genetic testing claims. The Carvers and their co-conspirators paid kickbacks and bribes to telemedicine companies in exchange for completed doctors’ orders, sold doctors’ orders to laboratories and durable medical equipment companies in exchange for kickbacks, forged doctors’ and patients’ signatures, and tricked medical providers into ordering medically unnecessary genetic testing. Between January 2020 and July 2021, the scheme resulted in the submission of over $67 million in false claims to Medicare for medically unnecessary genetic tests and durable medical equipment.
Daniel Carver pleaded guilty to conspiracy to commit health care fraud and wire fraud and conspiracy to defraud the United States and to pay and receive kickbacks. He faces a maximum penalty of 25 years in prison. Louis Carver pleaded guilty to conspiracy to commit health care fraud and faces a maximum penalty of 10 years in prison. Both men are scheduled to be sentenced on Dec. 5. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In addition to last week’s guilty pleas, five other defendants in this case have pleaded guilty and are awaiting sentencing. Three defendants are scheduled for a trial set to commence on Sept. 26.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Patrick Queenan, Reginald Cuyler Jr., and Andrew Tamayo of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment and an information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Laplace Residents Charged with Preparing and Submitting Fraudulent Applications for Cares Act Financial AssistanceRead the Press Release
NEW ORLEANS – LYNN SCHOFIELD, age 60, and BASHIR SCHOFIELD, age 23, residents of LaPlace, Louisiana, were federally charged on July 13, 2023 for preparing and filing false loan applications related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), announced U.S. Attorney Duane A. Evans. LYNN SCHOFIELD was charged in a one-count bill of information with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 371 and 1343. BASHIR SCHOFIELD was charged in a one-count bill of information with wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the bills of information, LYNN SCHOFIELD and BASHIR SCHOFIELD worked together with another, unnamed individual to submit applications to fraudulently obtain money from Paycheck Protection Program (PPP) loans and Economic Injury Disaster loans (EIDL). Each defendant submitted at least one loan, and all applications falsely represented that the applicant had a sole proprietorship and generated substantial income from the business by falsely overinflating gross receipts. They also misrepresented that the loan proceeds were for business purposes. Instead, the defendants intended to use the money for personal purposes. More specifically, the entities either did not exist or earned far less money than LYNN SCHOFIELD, BASHIR SCHOFIELD, and the unnamed individual represented.
LYNN SCHOFIELD faces a maximum term of imprisonment of five (5) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee. BASHIR SCHOFIELD faces a maximum term of imprisonment of twenty (20) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
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
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Tohatchi Man Pleads Guilty to Involuntary Manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Donavan Henry pled guilty to involuntary manslaughter in Indian Country. Henry, 40, of Tohatchi, New Mexico, and an enrolled member of the Navajo Nation, will remain on conditions of release pending sentencing, which has not yet been scheduled. Henry’s conditions include a strict prohibition on drug and alcohol use, drug and alcohol testing, and substance-abuse treatment.
According to court documents, on November 2, 2022, Henry was driving east on Route 134 in Sheep Springs, New Mexico, with two passengers when he lost control of his vehicle. The vehicle went off the two-lane road and flipped when it hit a boulder. All three passengers were ejected from the vehicle. A Navajo Police officer arrived to find Henry underneath the vehicle and his passengers lying on the ground near the vehicle.
Henry was airlifted to San Juan Regional Medical Center. The passenger from the front seat, John Doe 1, who was also a member of the Navajo Nation, was placed in an ambulance bound for Northern Navajo Medical Center. The passenger from the back seat, John Doe 2, was placed in an ambulance going to Gallup Indian Medical Center. John Doe 1 died of his injuries while in the back of the ambulance before it left the scene. Henry’s blood-alcohol content, which was drawn at the hospital following the wreck, was .16.
At sentencing, Henry faces a statutory maximum of up to eight years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and the New Mexico Office of the Medical Investigator. Assistant United States Attorney Zachary Jones is prosecuting the case.
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Three Men Pled Guilty to Federal Charges Involving Maintaining a Drug-Involved Premises at Motel in AlbuquerqueRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Gregory M. Millard, Special Agent in Charge for the DEA El Paso Division, announced today that Kamal Bhula, Pragneshkumar Patel and Johnathan Craft pled guilty to drug and firearms charges arising from a drug trafficking venture run out of a motel Albuquerque. Bhula and Craft will remain in custody pending sentencing, which has not been scheduled.
Kamal Bhula, 44, of Albuquerque, and Pragneshkumar “Pete” Patel, 36, of Montgomery, Alabama, pled guilty to one count each of maintaining a drug-involved premise. Jonathan Craft, 36, of Albuquerque, pled guilty to conspiracy and being a prohibited person in possession of a firearm or ammunition.
A federal grand jury indicted Bhula and Craft on June 20, 2019. Patel was indicted on November 5, 2019. According to court records, Patel owned the Best Choice Inn at 7640 Central Avenue SE and was the on-site manager from September 2017 to March 2018, when Bhula leased the property from Patel and took over as the on-site manager. Craft lived and worked at Best Choice Inn, claiming to be in charge when Bhula was away. Craft sold drugs from his room, permitted others to do the same, and permitted individuals to use drugs on the premises. Craft also unlawfully possessed a firearm. Bhula and Patel allowed drug trafficking at the motel and personally observed and profited from those who used controlled substances on the premises.
At sentencing, Bhula, Craft and Patel each face up to 20 years in prison.
The Drug Enforcement Administration investigated this case with assistance from the New Mexico Attorney General’s Office, the Albuquerque Police Department, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Marshals Service, the Bernalillo County Sheriff’s Office and New Mexico State Police. Assistant United States Attorneys Letitia Carroll Simms and Jack E. Burkhead are prosecuting the case.
Texas Lawyer Convicted of Conspiracy and PerjuryRead the Press Release
TYLER, Texas – A Houston lawyer has been found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Peter J. Bennett, 48, was found guilty by a jury of money laundering conspiracy, money transmitting conspiracy, and perjury. The verdict was reached on July 14, 2023, following a week-long trial before U.S. District Judge Jeremy D. Kernodle.
“Lawyers swear an oath to support and uphold the Constitution and the laws of the United States,” said U.S. Attorney Damien M. Diggs. “This defendant abandoned his oath and used his bar license to launder and transmit the proceeds of a healthcare kickback conspiracy. Let this case serve as a cautionary tale to those who think they can hide criminal conduct behind professional licenses.”
“By facilitating kickbacks, this defendant knowingly enabled theft from Medicare and Medicaid, putting personal profit before legitimate patient needs and ultimately costing taxpayers millions of dollars,” said Jason E. Meadows, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Thanks to the strong partnership between federal and state law enforcement agencies, those who attempt to defraud federal health care programs will be held accountable.”
“The Department of Defense Inspector General, Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the healthcare system for military members and their families,” said Special Agent-in-Charge Michael C. Mentavlos, DCIS. “Today’s guilty verdict demonstrates our commitment to partner with the United States Attorney's Office and investigate fraudulent schemes that impact TRICARE and put its beneficiaries at risk.”
According to information presented in court, Bennett created sham trusts and shell corporations through which he laundered at least $2,724,080.41 in healthcare kickback proceeds. Bennett used his law firm’s Interest on Lawyers Trust Account (IOLTA), operating account, and a personal bank account to launder and transmit the kickback proceeds. The perjury charges arose out of false statements Bennett made in response to interrogatories propounded in Civil Investigative Demands issued by the Department of Justice as part of a False Claims Act (FCA) investigation. Bennett was indicted by a federal grand jury in February 2022.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the Defense Criminal Investigative Services (DCIS) with assistance from the U.S. Secret Service. It was prosecuted by Assistant U.S. Attorneys Adrian Garcia, Nathaniel C. Kummerfeld, and Betty Young, with assistance from Assistant U.S. Attorneys James Gillingham and Kevin McClendon.
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Suburban Chicago Physician Sentenced to Federal Prison for Prescribing Opioids Without a Medical ExamRead the Press Release
CHICAGO — A suburban Chicago physician has been sentenced to a federal prison term for prescribing opioids to patients without a medical examination and then billing Medicare for the purported treatment.
ELIZA DIACONESCU, 74, of Lake Forest, Ill., pleaded guilty earlier this year to a federal health care fraud charge. U.S. District Judge Steven C. Seeger on Wednesday sentenced Diaconescu to six months in federal prison and ordered her to pay $84,031 in restitution to Medicare.
Diaconescu admitted in a plea agreement that from 2016 to 2021, she pre-signed prescriptions for hydrocodone, oxycodone, and fentanyl for patients of her pain clinic in Gurnee, Ill., so that the prescriptions could be provided to patients when Diaconescu was not at the clinic. Diaconescu and others at the clinic created false paperwork indicating that Diaconescu had face-to-face exams with the patients, when, in fact, the patients had only come to pick up the pre-signed prescriptions and had not visited with Diaconescu. Diaconescu then knowingly submitted false claims seeking reimbursement from Medicare for the purported exams, knowing that such exams did not occur.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Division of the DEA, Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General, and Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General.
The case was brought by the U.S. Attorney’s Office’s Opioid Task Force, which was formed in 2019 for the purpose of combatting the unlawful distributions of controlled substances.
“The defendant’s fraudulent conduct was a gross abuse of the trust that Medicare places on medical providers to accurately bill for the work they have done,” Assistant U.S. Attorney Jared Hasten argued in the government’s sentencing memorandum. “All of the money paid by Medicare should have gone towards providing medical services to beneficiaries.”
Statement of U.S. Attorney Damian Williams on Intention to File for Contempt and Seek A Court-Appointed Receiver to Address Conditions on Rikers IslandRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced his Office’s intention to seek the appointment of a receiver to address the ongoing risk of harm to both incarcerated individuals and Department of Correction (“DOC”) Staff.
U.S. Attorney Damian Williams said: “Rikers Island has been in crisis for years. This is a collective failure with deep roots, spanning multiple mayoral administrations and DOC commissioners. But after eight years of trying every tool in the toolkit, we cannot wait any longer for substantial progress to materialize. That is why my Office will seek a court-appointed receiver to address the conditions on Rikers Island.”
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In 2015, the United States entered into a consent decree with the City of New York and the DOC to address violations of the constitutional rights of incarcerated individuals at Rikers Island (the “Consent Decree”). The Consent Decree required DOC to develop and implement a wide range of reforms to reduce the level of violence in the jails and ensure the safety and well-being of people in custody as well as corrections officers. Over the past eight years, this Office has worked diligently with the Monitor appointed pursuant to the Consent Decree and all parties to address the ongoing unsafe conditions on Rikers Island. After multiple remedial orders and an Action Plan that has been in place for over a year, on July 10, 2023, the Monitor found that despite some progress in certain areas, DOC has not made “substantial and demonstrable progress in implementing the reforms, initiatives, plans, systems, and practices as outlined in the Action Plan” and “there has not been a substantial reduction in the risk of harm currently facing incarcerated individuals and Department staff.” In light of these findings, this Office has decided to pursue contempt proceedings and seek additional relief from the Court, including the appointment of a receiver, to address the ongoing risk of harm to both incarcerated individuals and DOC staff. If appointed, the receiver would report to the Court and have independent authority to take necessary steps to comply with core provisions of the Consent Decree and other Court-ordered relief.
St. Louis County Sex Offender Sentenced to 10 Years for New Child Pornography CaseRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Monday sentenced a St. Louis County, Missouri man who used fake social media accounts to bait people into sending him sexual images to 10 years in prison for possession of child pornography.
Christopher D. Gruebbel, then 37, pleaded guilty in February to one count of possession of child pornography and admitted being caught with child pornography by probation officers.
Gruebbel was on supervised release at the time because in 2013, he was sentenced to four years and three months in prison after pleading guilty to two counts of possession of child pornography. Part of his sentence included a provision that after his release from prison, he would be on supervised release for life.
On multiple occasions in 2021, Gruebbel’s probation officer was unable to find him at his approved residence, later learning that Gruebbel had been evicted and was living with his mother without permission.
Probation officers then discovered that Gruebbel was in possession of multiple electronic devices without permission, including a laptop, a cell phone, an iPad and an iPod.
A total of 50 images and 14 videos containing child pornography were found on the iPad, as well as 251 images and 117 videos that contained exploitative and/or suspected child pornography on Gruebbel’s electronic devices.
An analysis of the devices also showed that Gruebbel was using fake social media accounts and posing as a young female named “Hannah” to bait people into sending nude pictures and videos of themselves, his plea agreement says. Gruebbel also participated in chat rooms devoted to “baiting” others into providing sexual images.
After his release from the new prison term, Gruebbel will be on supervised release for life.
The case was investigated by the U.S. Probation Office and the FBI. Assistant U.S. Attorney Jonathan Clow 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Springfield Man Convicted of Sex Trafficking a Minor He Solicited over FacebookRead the Press Release
BOSTON – A Springfield man has been convicted by a federal jury for sex trafficking of a minor under 14 years old.
Carlos Casillas, 51, was convicted on July 14, 2023 following a three-day jury trial of one count of sex trafficking of a minor. A sentencing date has not yet been scheduled by the court.
In September 2021, an investigation began into Casillas for sex trafficking activity involving a 13-year-old girl living in a group home in the custody of the Massachusetts Department of Children and Families. Evidence presented at trial established that Casillas solicited the minor victim using Facebook messenger, picked the minor victim up from her group home and eventually took her to a local motel.
“Carlos Casillas preyed on a vulnerable 13-year-old girl in state custody. His conduct was beyond horrific and now he will face the lengthy sentence of incarceration the law requires for sex trafficking of a minor. This office and the incredibly dedicated federal, state and local law enforcement partners we work with will never cease in our efforts to protect children from sexual exploitation,” said Acting United States Attorney Joshua S. Levy.
“Casillas preyed upon a child in a vulnerable situation. Now, he has been convicted of trafficking a minor and is facing a significant federal sentence. Homeland Security Investigations works every day to bring predators like Casillas to justice and to help connect victims to assistance to heal and move forward,” said Michael J. Krol, Acting Special Agent in Charge for Homeland Security Investigations in New England.
Members of the public who believe they, or someone they know, may be a victim of this crime should contact [email protected]. If you or someone you know may be impacted or experiencing commercial sex trafficking, please visit https://polarisproject.org/ for information and resources.
The charge of sex trafficking of a minor under 14 years old provides for a sentence of at least 15 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; HSI Acting SAC Krol; Hampden County District Attorney Anthony D. Gulluni; Hampden County Sheriff Nicholas Cocchi; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorneys Catherine G. Curley and Deepika Bains Shukla of the Springfield Branch Office 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 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.
Schenectady Felon Sentenced to 72 Months for Possessing Fentanyl and Cocaine Base for Distribution, and for Possessing Firearms in Furtherance of Drug TraffickingRead the Press Release
ALBANY, NEW YORK – Charles J. Whorley, age 35, formerly of Schenectady, New York, was sentenced today to 72 months in prison for possessing and intending to distribute fentanyl and cocaine base, and for possessing firearms in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and New York State Police (NYSP) Acting Superintendent Steven A. Nigrelli.
In pleading guilty, Whorley admitted to distributing a fentanyl mixture on several dates in June 2020, and to possessing 94 grams of fentanyl and 77 grams of cocaine base, which he intended to distribute, at his residence in Schenectady, on June 25, 2020. Whorley, a previously convicted felon, further admitted to possessing three loaded handguns at his residence to protect drugs and the cash generated from drug sales.
United States District Judge Mae A. D’Agostino also ordered that Whorley serve a 3-year term of supervised release following his release from prison.
This case was investigated by the NYSP and ATF with assistance provided by the Schenectady County District Attorney’s Office. Assistant U.S. Attorney Emmet O’Hanlon prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Saratoga Man Sentenced for Money Laundering ConspiracyRead the Press Release
ALBANY, NEW YORK – Michael J. Smith, age 62, of Saratoga, New York, was sentenced today to 5 years of probation for conspiring to launder money.
United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General (USDOL-OIG), North East Region; and Ketty Larco-Ward, Postal Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Boston Division, made the announcement.
In previously pleading guilty, Smith admitted to conspiring with a purported woman he met online and her purported attorney to launder over $200,000 in fraudulently obtained government benefits between June 2020 and May 2022. The benefits mostly came from COVID-19 relief programs and were obtained through fraudulent unemployment insurance applications and fraudulent business loan applications. The benefits were deposited into Smith’s bank account by government entities in several states, including Ohio, Illinois, Maryland, Colorado, California, and Pennsylvania, and sent to him by check and on debit cards. To launder the funds after he received them, Smith purchased gift cards with the fraud proceeds, took photographs of the gift cards, and sent the photographs to the purported woman and her purported attorney. He also transferred fraud proceeds to his co-conspirators.
Smith was also ordered to pay $208,263.22 in restitution to the defrauded government entities.
The case was investigated by HSI, USDOL-OIG, USPIS, and the New York State Police, and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
San Diego Couple Charged with Stealing Stimulus Payments During Pandemic and Purchasing Luxury Mercedes-Benz and JewelryRead the Press Release
NEWS RELEASE SUMMARY – July 17, 2023
SAN DIEGO – An indictment unsealed in federal court today charges Alexandra Crystal McFarland and Demetrius Montre McFarland, a married couple, with participating in a scheme to steal IRS stimulus payments during the COVID-19 pandemic from destitute and vulnerable victims and using the proceeds to purchase a luxury vehicle, jewelry and furniture.
The indictment alleges that between April 2020 and at least September 2020, Mrs. McFarland approached homeless and low-income individuals throughout Southern California for the purpose of soliciting and collecting their personal identifying information (“PII”). Mrs. McFarland then allegedly used that information—along with the PII of detainees at two local detention facilities—to submit applications for Economic Impact Payments (EIP) from the IRS, which are commonly referred to as “stimulus payments.”
For his part, Mr. McFarland allegedly provided Mrs. McFarland with the PII of his fellow detainees at the Vista Detention Center. Mr. McFarland is presently serving a state prison term for attempted murder.
Mrs. McFarland allegedly made false representations to obtain the PII, including that those providing their PII to her could expect to receive an EIP in the mail, when in fact Mrs. McFarland directed payment of the EIP to a bank account that she controlled. Similarly, Mrs. McFarland also allegedly claimed she would assist with the application in exchange for an agreed-upon portion of the EIP, but in fact would keep more than the agreed-upon amount—and sometimes the entire EIP. The indictment further alleges that Mrs. McFarland also used victims’ PII without lawful authority to apply for benefit payments from the State of California Employment Development Department.
The indictment states that Mrs. McFarland used various EDD debit cards to purchase thousands of dollars of jewelry, nearly $9,000 in furniture that she shipped to her Spring Valley residence, and to cover part of a $60,000 down payment for a Mercedes-Benz G-Class 550 SUV that she purchased in the name “Alexa McFarland.” In addition to the conspiracy count, the indictment charges Mrs. McFarland with money laundering based on her purchase of the luxury vehicle, which the IRS has seized.
Mrs. McFarland entered a not guilty plea on July 17, 2023. A detention hearing before U.S. Magistrate Judge Michael S. Berg is scheduled for July 20, 2023, and a motion hearing and trial setting before U.S. District Judge Gonzalo P. Curiel is scheduled for August 7, 2023.
Mr. McFarland is expected to make his initial appearance on July 18, 2023. Mr. McFarland will be arraigned on both the indictment and on allegations that he violated the terms of supervised release imposed in his prior federal conviction for Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity (RICO) in Criminal Case No. 17-CR-270-JAH.
DEFENDANTS Case Number 23-CR-1098-GPC
Alexandra Crystal McFarland Age: 32 San Diego, CA
Demetrius Montre McFarland Age: 30 San Diego, CA
SUMMARY OF CHARGES
Conspiracy–Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
Money Laundering–Title 18, U.S.C., Section 1957
Maximum penalty: Ten years in prison and $250,000 fine
AGENCY
Internal Revenue Service, Criminal Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Rumford Man Pleads Guilty to Employment Tax EvasionRead the Press Release
PORTLAND, Maine: A Rumford man pleaded guilty today in U.S. District Court in Portland to willfully evading the payment of employment taxes.
According to court records, between 2013 and 2017, Jeffrey Richard, 48, willfully attempted to evade payment of employment withholding taxes owed by his company, Black Bear Industrial, Inc. Despite being aware of the company’s unpaid employment tax liability, Richard took a variety of steps to evade payment. He regularly used funds from Black Bear’s business bank account to make business and personal purchases, all while making no payments toward Black Bear’s tax liability. He also created two nominee companies and took steps to disguise his ownership of the companies. He falsely represented to an IRS revenue officer that he had anything to do with one of the companies. The other company did business and had over $174,000 of business income in 2017, but none of the money was used to pay the IRS. Richard never informed the IRS about the company, and the company never filed any corporate or employment tax returns.
Richard faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation investigated the case.
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Recidivist Sex Offender Sentenced to Time Served After Pleading Guilty to Possession Child Pornography in Two Separate CasesRead the Press Release
ALBUQERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico announced today that Thomas Crosby was sentenced to 5 days in prison or time served. Crosby, 29, of Irwin, Pennsylvania, pled guilty in federal court to the possession of visual depictions of minors engaging in sexually explicit conduct in two separate cases on Sept. 14, 2022.
According to the plea agreement and other court records, on June 20, 2018, PayPal reported seven accounts potentially selling child pornography and numerous accounts purchasing content from the noted sellers. One such buyer was identified as Crosby. PayPal identified various IP addresses utilized by Crosby and provided them to the FBI. Special Agents from the FBI checked the IP addresses in the Internet Crimes Against Children (ICAC) database and were able to determine that they were actively downloading child pornography on the BitTorrent network around the same dates Crosby logged into PayPal.
At the time of the offense, Crosby was a member of the United States Air Force assigned to Cannon Air Force Base near Clovis, NM. On November 14, 2018, law enforcement agents executed a search warrant on Crosby’s address in Clovis. Crosby was subsequently interviewed by agents of the Air Force Office of Special Investigations and the FBI and admitted to downloading child pornography via BitTorrent. Crosby was administratively discharged from the Air Force as a result and returned to the Pittsburgh area in the Western District of Pennsylvania.
Crosby was indicted by a federal grand jury in the District of New Mexico on Sept. 23, 2020. After Crosby was indicted in the District of New Mexico in September 2020 for possessing child pornography, the FBI executed an arrest warrant near Monroeville, Pennsylvania. At the time of his arrest, Crosby admitted to continuing to view child pornography after leaving New Mexico despite law enforcement intervention. A search of Crosby’s phone uncovered additional items of child pornography. As a result, Crosby was federally indicted on Feb. 1, 2022, in the Western District of Pennsylvania for the additional child pornography offenses.
On Sept. 19, 2022, after the Pennsylvania case was transferred to New Mexico, Crosby pled guilty in federal court to the possession of visual depictions of minors engaging in sexually explicit conduct in both cases. The United States Sentencing Guideline range for Crosby’s offense was 78-97 months in prison, supervised release for 5 years to life, and a requirement to register as a sex offender upon his release from prison.
On July 13, 2023, Crosby appeared in District Court for sentencing in both cases. The United States recommended that he receive a sentence of 78-months incarceration. Crosby was sentenced to time served, or 5 days in prison, 15 years of supervised release, and ordered to pay restitution in the amount of $12,000. One of the conditions of Crosby’s supervised release is that he be on GPS monitoring with home detention, which allows him to leave his residence for work, appointments, and with the express permission of his Probation Officer for five years. He will also be required to register as a sex offender.
The New Mexico case was investigated by the Las Cruces Resident Agency of the Federal Bureau of Investigations and the Air Force Office of Special Investigations with assistance from the New Mexico Regional Computer Forensics Laboratory.
Pinellas County Man Sentenced for Wire and Bank Fraud OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn K. Mizelle has sentenced James John Melis (54, Largo) to four years and three months in federal prison for bank fraud and wire fraud. As part of his sentence, the court entered an order of forfeiture in the amount of $439,177, the proceeds of the charged criminal conduct. The court also ordered Melis to pay $684,000 in restitution, which represents the loss amount of the offenses. Melis had pleaded guilty on March 20, 2023.
According to court documents, Melis was involved in two fraud schemes. In the first, Melis abused his position as business manager at a private school in Hillsborough County by fraudulently attaching his personal bank account to one of the school’s financial accounts. When parents made tuition payments, Melis initiated fraudulent electronic funds transfers to his personal account. He then spent the stolen funds on travel and luxury items, including jewelry.
In the second scheme, Melis carried out a mortgage origination fraud against a financial institution for two properties that he owned. To deceive the lender into believing that he was a qualified borrower, Melis used the personal identification information of another person on loan applications, and prepared and submitted false and fraudulent IRS income tax returns, fictitious satisfactions of mortgages falsely representing that his properties had equity, and bogus lease agreements falsely showing he received substantial rental income. Based on Melis’s misrepresentations, the financial institution approved and funded both mortgage loans. The mortgage loans were purchased and guaranteed by Fannie Mae.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Chris Poor. Assistant United States Attorney James A. Muench is handling the forfeiture.
Orange County Man Sentenced to 4.25 Years in Prison for Trafficking Fentanyl and Heroin in Bakersfield and FresnoRead the Press Release
FRESNO, Calif. — Luis Noe Hernandez Rojo, 34, of Orange, was sentenced today to four years and three months in prison for conspiring to distribute and possess with intent to distribute fentanyl and heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Hernandez participated in a well-established heroin and methamphetamine drug trafficking organization based in Mexico by agreeing to deliver fentanyl and heroin on two occasions in Bakersfield on behalf of the organization. On Aug. 7, 2019, Hernandez delivered approximately 2,000 counterfeit oxycodone pills laced with fentanyl to an undercover agent. On Dec. 13, 2019, Hernandez was arrested while transporting to the same undercover agent in Fresno approximately 60,000 counterfeit oxycodone pills laced with fentanyl, 4.2 pounds of fentanyl powder, and 17.6 pounds of black tar heroin.
Co-defendant Donis Ariel Maldonado, 31, a citizen of Guatemala, was arrested last year for his involvement in the drug conspiracy and is scheduled for a status conference in federal court in Fresno on Sept. 20, 2023.
This case is the product of an investigation by the Federal Bureau of Investigation and the High Impact Investigation Team (HITT) with assistance from the Drug Enforcement Administration. HIIT is a High Intensity Drug Trafficking Area (HIDTA) Initiative, which consists of personnel from the FBI, the California Department of Justice, the California Highway Patrol, the Tulare County Sheriff’s Office, the Kings County Sheriff’s Office, the Madera County Sheriff’s Office, the Fresno County Sheriff’s Office, the Fresno County District Attorney’s Office, and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
North Carolina man charged with abusive sexual contact on Delta Airlines flight from AtlantaRead the Press Release
Seattle – A- 69-year-0ld Andrews, North Carolina resident is in federal custody tonight charged with abusive sexual contact on board an aircraft, announced Acting U.S. Attorney Tessa M. Gorman. Jack Allen Roberson was arrested at Sea-Tac airport Sunday evening and will remain in federal custody pending a detention hearing on Wednesday, July 19, 2023.
According to records filed in the case, Roberson was seated next to the 15-year-old victim who was traveling with her guardian. According to the criminal complaint, while Roberson appeared to be sleeping, he allegedly slipped his hand onto the victim’s thigh and ran in up under her skirt and towards her genitals. The victim reported the unwanted touching to her guardian who contacted the flight attendant. Roberson was moved to a different seat. Law enforcement was contacted and met the plane on arrival. Roberson was arrested and taken to the Federal Detention Center at SeaTac.
Abusive sexual contact on an aircraft is punishable by up to two years in prison and a $250,000 fine.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Sanaa Nagi.
Nigerian National Extradited from South Africa for Cyber Fraud Scheme Targeting Tulsa CompanyRead the Press Release
TULSA, Okla. – Sunday Daniel Ganyo, 37, a Nigerian national, made his initial appearance in federal court Friday, after being extradited from South Africa pursuant to a 2020 federal criminal complaint alleging his involvement in a cyber fraud scheme targeting companies in Tulsa and North Carolina. Ganyo faces charges for conspiracy; transportation of stolen goods; means of identification fraud; trafficking in false means of identification; identity theft conspiracy and attempt; aggravated identity theft; mail fraud; wire fraud; and attempt and conspiracy to commit mail and wire fraud.
“Identity theft and computer fraud have a lasting impact on the financial health of the victims and society,” said U.S. Attorney Clinton Johnson. “We are committed to bringing cyber criminals that target Oklahoma companies to justice, even when they hide behind stolen identities across the world and operate in the shadows of cyberspace.”
“The FBI has a long tradition of protecting American companies from these types of schemes and bringing those responsible to justice, no matter where they are located,” said FBI, Oklahoma City, Special Agent in Charge Edward J. Gray. “I’m grateful for the dedicated partnership of the South African authorities to find and arrest Mr. Ganyo, so that he may face charges here in Oklahoma.”
According to court documents, Ganyo is alleged to have sent a computer services company in Tulsa a spoofed email using a fraudulently acquired identity and arranged for the purchase of approximately $400,000 worth of Microsoft Surface Pro Tablets. The fraudulent email was successful, and an order was processed and shipped to a company in Raleigh, North Carolina. Ganyo is alleged to have sent a second spoofed email to the North Carolina company, impersonating the Tulsa company, claiming the order was in error and that someone would retrieve the shipment. The shipment was then retrieved from the North Carolina company, repackaged, and prepared for shipment to South Africa by an unknown coconspirator. However, the FBI was able to intercept the shipment in Memphis, Tennessee, and replace the contents with dummy goods and a tracking device. A controlled delivery was then executed in Johannesburg, South Africa and the defendant was arrested by partners with the South African Police Service. Investigation continues into Ganyo’s possible involvement in similar cyber fraud schemes in other parts of the country.
The Justice Department’s Office of International Affairs worked with law enforcement partners in South Africa to secure the arrest and extradition of Ganyo. The FBI is investigating the case. Assistant U.S. Attorneys Christopher J. Nassar and Thomas Buscemi are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Members of the public are reminded to be extremely cautious while conducting business on the internet. Check sender emails and URL addresses for irregularities. Use a full-service internet security site that protects your information. Use strong passwords by incorporating at least 10 letters, numbers, and symbols. Keep your software updated because criminals exploit known software flaws. Manage your social media settings and be careful what you share. For instance, if you share your pets name or reveal where you and your spouse met, you might expose the answers to two common security questions. Secure your home network and public networks by using a virtual private network (VPN). Finally, don’t provide personal information to unsolicited individuals or messages. Most business won’t reach out and ask for personal information by phone or email. If they do, tell them you will call them back. Then call the main number to inquire about the request. If you believe you have been a victim of fraud report it to your local police.
Nashua Man Sentenced to over Seven Years in Prison for Attempted Bank RobberyRead the Press Release
CONCORD – A Nashua man was sentenced in federal court for attempting to rob Bank of America and East Hollis Variety in Nashua, U.S. Attorney Jane E. Young announces.
Shawn Soucy, 53, was sentenced by U.S. District Court Chief Judge Landya McCafferty to 89 months in prison and 3 years of supervised release. On March 9, 2023, Soucy pleaded guilty to attempted bank robbery and interference with commerce by threats or violence.
“People who threaten others and attempt to steal from businesses in our communities will be held accountable and significantly punished for their crimes,” said U.S. Attorney Jane E. Young. “The U.S. Attorney’s Office prioritizes working with our federal, state, and local law enforcement partners to keep our communities safe. No one should have to go to work and have their safety and security jeopardized by another person.”
“Shawn Soucy is a dangerous criminal who threatened innocent victims, bank tellers and bystanders, during the commission of his violent crimes,” said Christopher DiMenna, Acting Special Agent in Charge of the FBI Boston Division. “This case should be a warning to others that if you commit a bank robbery or any other violent crime in New Hampshire, you will face serious consequences. The FBI’s Major Offender Task Force is committed to taking violent criminals off the street and stopping them from continuing to victimize others.”
On January 18, 2022, Soucy entered Bank of America and threatened to shoot the teller if that individual did not give him money. He then went to East Hollis Variety, where he held his hand in the shape of a gun and demanded money from the clerk. He did not take any money from either establishment.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Nashua Police Department. Assistant U.S. Attorney Heather A. Cherniske and Anna Dronzek prosecuted the case.
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Muskogee Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Matthew Staton, age 28, of Muskogee, Oklahoma, was sentenced to 50 months in prison for the unlawful possession of a firearm by a convicted felon.
The charges arose from investigations by the Muskogee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On July 28, 2022, Staton pleaded guilty to one count of Felon in Possession of a Firearm.
On May 17, 2022, the Muskogee Police Department attempted to stop Staton when he took off running and threw a backpack he was carrying. When the backpack was recovered, a loaded handgun was found on the ground next to the backpack. At the time Staton possessed the firearm, Staton was a convicted felon.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Jacob Matthew Staton will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States.
Mobile Man Sentenced in Firearms CaseRead the Press Release
MOBILE, AL – A Mobile man was sentenced to 37 months in prison for being a felon in possession of a firearm and ammunition.
According to court documents, Frederick Oneal Knight, Jr., 34, was arrested by Mobile police officers on August 12, 2022, following a traffic stop of a car that he was driving. Knight admitted that there was a personal-use amount of marijuana in the car, which officers could smell. In a holster on Knight’s waistband, police recovered a Glock .40-caliber pistol equipped with a loaded extended magazine. Officers also removed two loaded magazines from Knight’s pocket. Knight admitted to police that he was a convicted felon, having previously pled down a first-degree murder charge to a felony reckless manslaughter conviction in Mobile County Circuit Court in November 2021. Knight also admitted that he was on probation for the manslaughter conviction at the time he possessed the pistol and ammunition in August 2022. Knight’s prior conviction rendered his possession of any firearms or ammunition illegal under federal law.
In addition to the 37-month prison term, United States District Judge Kristi K. DuBose ordered Knight to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge DuBose ordered Knight to pay $100 in special assessments and forfeited his pistol and ammunition to the United States.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Manchester Man Sentenced to More Than 8 Years in Federal Prison for Fentanyl Distribution and Gun Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that EDUARDO COLON, 34, of Manchester, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 100 months of imprisonment, followed by five years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, on June 3, 2022, the FBI’s Northern Connecticut Gang Task Force made a controlled purchase of 1,000 wax sleeves of fentanyl from Colon in front of his Manchester residence on Buckland Hills Road. Later that day, a court-authorized search of Colon’s residence revealed a loaded 9mm semiautomatic handgun, approximately 2,100 sleeves of fentanyl, approximately 230 grams of unpackaged fentanyl, items used to process and package narcotics, a money counter, and approximately $11,000 in cash.
Colon’s criminal history includes state felony convictions for narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Colon has been detained since June 3, 2022. On March 27, 2023, he pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl, and one count of unlawful possession of a firearm by a felon.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Manchester Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case was prosecuted by Assistant U.S. Attorney A. Reed Durham.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Local Men Sentenced in Connection with Jung Hotel ShootingRead the Press Release
NEW ORLEANS, LOUISIANA – TREJON HOWARD, age 20, of New Orleans, and TIQUAN EVERSON, age 26, of Avondale, were sentenced on July 12, 2023 by United States District Judge Ivan L.R. Lemelle, announced U.S. Attorney Duane A. Evans.
HOWARD was sentenced to 330 months imprisonment, five years of supervised release following his term of imprisonment, and a $400 mandatory special assessment fee.
EVERSON was sentenced to 360 months imprisonment, five years of supervised release following his term of imprisonment, and a $400 mandatory special assessment fee.
According to court documents, HOWARD and EVERSON previously pled guilty to attempted Hobbs Act Robbery, conspiracy to possess with the intent to distribute quantities of marijuana, using, carrying, and discharging a firearm during and in relation to a drug trafficking crime, and conspiracy to possess firearms in furtherance of a drug trafficking crime.
Co-defendant, CHRIS ROSS, age 22, of St. Bernard Parish, was sentenced on June 5, 2023 by United States District Judge Ivan L.R. Lemelle. ROSS was sentenced to 355 months imprisonment. In addition, ROSS received five years of supervised release following his term of imprisonment, along with a $400 mandatory special assessment fee.
According to court documents, ROSS previously pled guilty to attempted Hobbs Act Robbery, conspiracy to possess with the intent to distribute quantities of marijuana, using, carrying, and discharging a firearm during and in relation to a drug trafficking crime, and conspiracy to possess firearms in furtherance of a drug trafficking crime.
This prosecution stems from a shootout that occurred at the Jung Hotel in New Orleans, on December 28, 2020. HOWARD and EVERSON, along with four other co-defendants, entered the Jung Hotel and attempted to rob drug dealers (hotel occupants) of significant amounts of marijuana. During the attempted robbery, a shootout ensued during which over 80 shots were fired and three people wounded. These events were documented by Jung Hotel security cameras footage that was introduced as evidence at the sentencing hearing for co-defendants DARIUS DANNEL and TERRELL MOORE.
DARIUS DANNEL, age 28, and TERRELL MOORE, age 25, both of New Orleans, were sentenced on June 28, 2023 by United States District Judge Ivan L.R. Lemelle. DANNEL was sentenced to 360 months imprisonment, while MOORE received a 330-month sentence. In addition, both defendants received five years of supervised release following imprisonment, along with a $400 mandatory special assessment fee.
According to court documents, DANNEL and MOORE previously pled guilty to attempted Hobbs Act Robbery, conspiracy to possess with the intent to distribute quantities of marijuana, using, carrying, and discharging a firearm during and in relation to a drug trafficking crime, and conspiracy to possess firearms in furtherance of a drug trafficking crime.
Three of the marijuana distributors involved in the shootout, CLARENCE SANTIAGO, BRIAN JACOB, and MALIK FERNANDEZ, pled guilty to similar crimes before United States District Court Judge Greg G. Guidry. On March 7, 2023, Judge Guidry sentenced SANTIAGO to 360 months in prison and on July 11, 2023, he sentenced FERNANDEZ to 350 months in prison. BRIAN JACOB will be sentenced on October 31, 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit are in charge of the prosecutions.
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Kanawha County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – David Jefferson Womack, 45, of St. Albans, pleaded guilty today to theft of a firearm from a federal firearms licensee.
According to court documents and statements made in court, on November 16, 2022, Womack stole a Kel-Tec, model P-32, .32-caliber pistol from a Kanawha County pawn shop. Womack admitted to the theft when he was arrested by law enforcement officers on April 4, 2023.
Womack is scheduled to be sentenced on October 18, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the St. Albans Police Department.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Troy D. Adams is 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-45.
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Jury Convicts Former San Francisco Public Utilities Commission General Manager of Felony Bribery and Bank Fraud ChargesRead the Press Release
SAN FRANCISCO – A federal jury today convicted Harlan Kelly, the former General Manager of the San Francisco Public Utilities Commission (PUC) of charges that he accepted bribes and gifts from a local businessman in a scheme to provide confidential information about the city public bidding process and steer city contracts to that person’s businesses, announced First Assistant United States Attorney Patrick Robbins, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian. The verdict follows a two-week trial before United States Chief District Judge Richard Seeborg.
Kelly, 61, of San Francisco, was arrested on a criminal complaint in November 2020, and he was tried on charges contained in a May 31, 2022, superseding indictment that included charges of conspiracy to commit honest services wire fraud and honest services wire fraud. The superseding indictment also included charges of false statements to a bank, conspiracy to make false statements to a bank, bank fraud, and bank fraud conspiracy, related to a scheme to defraud Quicken Loans in connection with a $1.3 million mortgage refinance loan obtained by Kelly.
Kelly was convicted of one count of conspiracy to commit honest services wire fraud, one count of honest services wire fraud, and all four counts related to the bank fraud scheme. The jury found Kelly not guilty of two honest services wire fraud counts.
The charges against, and prosecution of, Kelly grew out of a years-long investigation into bribery and public corruption in San Francisco city government, led by the U.S. Attorney’s Office, the FBI, and IRS-CI. To date, 13 individuals have been charged in connection that larger set of investigations, including Mohammed Nuru, former director of the San Francisco Public Works department, and multiple city contractors and other facilitators of bribes and corruption.
The evidence at trial showed that Kelly, appointed in 2012 as General Manager of the San Francisco PUC, had access to confidential information about city contract bidding processes, and the ability to influence the awarding of some city contracts. Documents and testimony showed that Kelly had a close personal and professional relationship with San Francisco business owner and contractor Walter Wong, and that during the time Wong both conducted business with the city and sought additional lucrative contracts to supply the PUC with LED streetlights. While he was doing business with the city and seeking contracts, Wong provided numerous gifts, benefits, and bribes to Kelly. These bribes including discounted construction work on Kelly’s personal residence and a lavish international trip hosted by and in part paid for by Wong. Evidence showed that Wong paid travel and personal expenses for Kelly and his family during a March 2016 Kelly family vacation to Hong Kong, Macau, and China, and that Wong paid for hotel expenses and incidentals such as meals and luxury excursions. Wong has previously pleaded guilty to charges that he engaged in an honest services fraud conspiracy in connection with his interactions with Kelly and others.
The evidence at trial showed that as part of the bribery conspiracy, Kelly provided confidential information and documents about the details of bids submitted by other contractors, including proprietary pricing and cost information, and information and documents with internal notes about how city employees in the PUC were evaluating and rating the bidders. The evidence showed that Kelly delivered these documents to Wong and his associates in violation of Kelly’s fiduciary obligations to the city and its residents, and that the confidential information assisted Wong and his company in improving Wong’s chances to obtain the contract award.
Trial evidence also showed that Kelly defrauded Quicken Loans, a financial institution, in a $1.3 million dollar real estate mortgage loan provided to Kelly. The evidence at trial showed that Kelly worked with an associate, prominent city businessman and property manager Victor Makras, to mislead the bank. According to the evidence, in the application for the loan Kelly falsely represented that he had a $915,000 mortgage and concealed the true nature of his debts from Quicken. According to the trial evidence, these misrepresentations were material to the bank’s evaluation of the borrower and the loan. The outstanding debts that Kelly concealed from Quicken included a construction debt owed to the contractor, Walter Wong that amounted to about $89,000. Another debt concealed from the company was a $70,000 unsecured personal loan made by Makras to Kelly, a result of Makras directly paying Kelly’s credit card debt in order to conceal the fact that Kelly received this loan from Makras.
Co-defendant Makras, 64 of San Francisco, was also charged in the May 31, 2022 superseding indictment, and was convicted of making false statements to a bank and bank fraud at a separate trial in August 2022.
The federal jury today convicted Kelly of the following:
• One count of conspiracy to commit honest services wire fraud, in violation of 18 U.S.C. §§ 1343, 1346, and 1349, which carries a maximum possible penalty of 20 years in prison and a fine of $250,000, or the greater of twice the gross gain or gross loss
• One count of honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346, which carries a maximum possible penalty of 20 years in prison and a fine of $250,000, or the greater of twice the gross gain or gross loss
• One count of making false statements to a bank in violation of 18 U.S.C. § 1014, which carries a maximum possible penalty of 30 years in prison and a $1,000,000 fine
• One count of conspiracy to make false statements to a bank in violation of 18 U.S.C. § 371, which carries a maximum possible penalty of 5 years in prison and a fine of $250,000
• One count of bank fraud, in violation of 18 U.S.C. §§ 1344(1),(2), which carries a maximum possible penalty of 30 years in prison and a fine of $1,000,000, or not more than the greater of twice the gross gain or gross loss
• One count of conspiracy to commit bank fraud, in violation of 18 U.S.C. §§ 1344(1),(2) and 1349, which carries a maximum possible penalty of 30 years in prison and a fine of $1,000,000, or not more than the greater of twice the gross gain or gross lossAs part of any sentence, the court also may order the defendant to serve an additional period of supervised release to begin after any prison term, to pay additional penalties, and to pay restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553. Defendant Kelly remains out of custody pending sentencing. No future date has yet been set.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. Assistant U.S. Attorneys David Ward and Kristina Green prosecuted the case at trial with the assistance of Tina Rosenbaum. The case is being investigated by the FBI and the IRS-CI.
Janesville Man Sentenced to 13 Years for Multiple Armed Robberies & Brandishing a FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Devonti Wilson, 38, Janesville, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 13 years in federal prison for armed robbery and brandishing a firearm in furtherance of a crime of violence. This prison term will be followed by a 5-year term of supervised release. Wilson pleaded guilty to these charges on March 21, 2023.
On September 8, 2020, Wilson robbed a Lion’s Quick Mart in Janesville. During the robbery, Wilson pointed a gun at the clerk and demanded money and cigarettes; he also told the clerk to “hurry up or you’ll die.” Wilson then left the store with money and cigarettes. Over the next three hours, Wilson committed similar armed robberies at a Kelley Williamson Mobil in Fitchburg, Wisconsin and a 7-Eleven in Madison, Wisconsin. He also attempted a fourth armed robbery at a BP in Madison.
On September 10, 2020, Wilson committed four more armed robberies in Janesville. Within one hour, he robbed a Kwik Trip, a second Lion’s Quick Mart, a Tigermart Exxon, and a Walgreens. In each robbery, Wilson brandished a gun at an employee. Shortly after the last robbery, police found Wilson in a vehicle near his home and arrested him. Inside the vehicle officers found bait bills from one of the convenience stores, cash, cartons of cigarettes, and a loaded 9mm firearm.
At the time of these offenses, Wilson had been convicted of multiple felony offenses and was prohibited from possessing a firearm. He was also on active state supervision in connection to a 2018 conviction for committing a robbery with use of force.
In sentencing Wilson, Judge Conley remarked that the amount of money Wilson took from each store paled in comparison to the terrorism he imposed on each employee. Judge Conley stated a significant sentence was warranted in this case as no prior sentence had deterred Wilson from committing additional crimes.
The charges against Wilson were the result of an investigation conducted by the Janesville, Fitchburg, and Madison Police Departments and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor L. Kraus prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Iowa Man Sentenced to Nearly 11 Years in Federal Prison for Trafficking Heroin and Methamphetamine in Northwest IllinoisRead the Press Release
ROCKFORD — An Iowa man has been sentenced to nearly eleven years in federal prison for trafficking methamphetamine and heroin in northwest Illinois.
CORDERO DAVIS, 36, of Dubuque, Iowa, pleaded guilty earlier this year to knowingly and intentionally possessing nearly 900 grams of methamphetamine and more than 50 grams of heroin with the intent to distribute. U.S. District Judge Iain D. Johnston on Thursday sentenced Davis to 130 months in federal prison.
On June 28, 2022, an officer with the Jo Daviess County Sheriff’s Office stopped Davis’s vehicle. Davis failed to produce any identification and then provided a false name and date of birth to the officer. The officer confirmed Davis’s true identity and discovered that Davis’s driver’s license was suspended. The officer also discovered an arrest warrant pending against Davis from Cook County, Ill. The officer arrested Davis and discovered the controlled substances during a search of his vehicle.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the U.S. Drug Enforcement Administration. The Jo Daviess County Sheriff’s Office assisted in the investigation. The government was represented by Assistant U.S. Attorney Jessica Maveus.
International Cyber Fraudster Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
CHICAGO — A resident of the United Arab Emirates who orchestrated an $8 million cyber fraud scheme targeting several United States-based companies has been sentenced to more than eight years in a U.S. prison.
OLALEKAN JACOB PONLE, also known as “Mr. Woodbery,” and “Mark Kain,” 31, was living in the UAE in 2019 when he worked with co-schemers to engage in numerous business email compromise schemes. The co-schemers used phishing links to gain unauthorized access to email accounts and then created false instructions directing employees of the victim companies to wire money to bank accounts opened by money mules at Ponle’s direction. The fraudulent emails often claimed to be from the company or a known business contact and were nearly identical to prior legitimate emails sent over the company’s email account. After unwitting employees wired money, in some cases millions of dollars, to the bank accounts, Ponle instructed the money mules to convert the proceeds to Bitcoin and send them to him.
As a result of Ponle’s scheme, victim companies suffered more than $8.03 million in actual losses and more than $51.3 million in intended losses. One of the victim companies was based in Chicago, while others were located in Iowa, Kansas, Michigan, New York, California, and elsewhere.
Ponle is a Nigerian national who was arrested in June 2020 by law enforcement in the UAE. He was subsequently expelled from the UAE into the custody of the FBI and arrived in Chicago the following month. He pleaded guilty earlier this year to a federal wire fraud charge.
U.S. District Judge Robert W. Gettleman on July 11, 2023, sentenced Ponle to eight years and four months in federal prison. Ponle was ordered to pay more than $8.03 million in restitution to the victim companies and forfeit numerous luxury items purchased with proceeds traceable to the fraud scheme, including a Rolls Royce Cullinan, Lamborghini Urus, Mercedes-Benz G-Class AMG G55, and Rolex and Patek Philippe watches. Ponle previously forfeited to the government 151 bitcoin, which were also derived from proceeds traceable to the fraud scheme.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Justice Department’s Office of International Affairs and the Dubai, UAE Police Department. Assistant U.S. Attorney Melody Wells of the Northern District of Illinois represented the government.
Independence Man Pleads Guilty to Transporting Child PornographyRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man pleaded guilty in federal court today to uploading videos of child pornography to his online storage accounts.
Joshua M. Rodgers, 29, pleaded guilty before U.S. District Judge Greg Kays to one count of transporting child pornography.
Rodgers uploaded hundreds of images and videos of child pornography to his cloud storage online Google account, particularly in his Google Drive file, as well as to Dropbox, an online cloud file storage program, from Dec. 4, 2017, to Feb. 27, 2019. In particular, on November 23, 2018, Rodgers uploaded two videos depicting child pornography to Dropbox through the internet.
During the course of the investigation, the Western Missouri Cyber Crimes Task Force received four CyberTip reports from the National Center for Missing and Exploited Children regarding a total of 548 videos of child pornography uploaded to Rodgers’s Google accounts. Investigators then identified 728 images and 771 videos of child pornography in Rodgers’s Google account. Of those, roughly 101 files involved infants or toddlers. An additional 1,022 images and 124 videos depicted “age difficult” persons and child erotica.
On Oct. 22, 2019, federal agents executed a search warrant at Rodgers’s residence. They seized his computer, which contained 658 videos and 139 images of suspected child pornography, including prepubescent victims, sadomasochistic behaviors, and bestiality.
Rodgers also admitted to previously communicating with a female from Ohio, beginning when she was 15 years old, and he admitted to sharing images and videos with her. Rodgers repeatedly asked her to send him pornographic images and videos of herself. He even bought her a sex toy, and had it sent to her to use in videos she could create for him. Rodgers also sent her videos of child pornography.
Under federal statutes, Rodgers is subject to a mandatory minimum sentence of five years in federal prison without parole, up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by Homeland Security Investigations and the Western Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Independence Man Pleads Guilty to Dealing Firearms Without a LicenseRead the Press Release
NEW ORLEANS, LOUISIANA – On July 11, 2023, RICHARD LUDWIG II, age 74, of Independence pleaded guilty for dealing firearms without a license in violation of Title 18, United States Code, Sections 922(a)(1)(A) and 924(a)(1)(D), announced U.S. Attorney Duane A. Evans .
LUDWIG faces a maximum term of imprisonment of five (5) years, a fine of up to $250,000, up to three (3) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee. He will be sentenced on October 17, 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. This matter is being prosecuted by Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit.
Huntington Man Sentenced to Prison for Fentanyl Crime and Violating Supervised ReleaseRead the Press Release
HUNTINGTON, W.Va. – Zachary Scott Whitmore, 32, of Huntington, was sentenced today to four years and six months in prison, to be followed by three years of supervised release, for distribution of fentanyl and violating his supervised release.
According to court documents and statements made in court, on October 19, 2022, Whitmore sold 7 grams of suspected heroin to a confidential informant near 25th Street in Huntington for $700. Whitmore also admitted to arranging the sale of 7 grams of suspected heroin to a confidential informant at a 9th Avenue residence in Huntington on October 24, 2022.
The Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory confirmed the controlled substances from both transactions was fentanyl.
At the time of this offense, Whitmore was serving a term of federal supervised release after pleading guilty to being a felon in possession of a firearm in United States District Court for the Southern District of West Virginia on August 12, 2019. Today’s prison sentence includes two years for committing a crime while on supervised release.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 3:23-cr-1 and 3:19-cr-137.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Jeremy Adam Bartram, 31, of Huntington, pleaded guilty today to possession with intent to deliver methamphetamine.
According to court documents and statements made in court, on April 30, 2023, law enforcement officers conducted a traffic stop of a vehicle driven by Bartram in Huntington. Officers searched Bartram’s vehicle and arrested him. Bartram admitted that when he was taken to the Huntington Police Department, a bag containing approximately 172 grams of methamphetamine fell out of his shorts as he got out of the police cruiser.
Officers later searched Bartram in a holding cell and found approximately 10.4 grams of fentanyl hidden in his person. Bartram admitted that he intended to sell the methamphetamine and the fentanyl.
Bartram is scheduled to be sentenced on October 30, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is 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. 3:23-cr-86.
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Honduran National Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – MARIO HERNANDEZ-MARIN, a/k/a “Jose Hernandez-Marin,” a/k/a “David Hernandez-Marin,” a/k/a “Jose G. Hernandez,” a/k/a “Daniel Enrique-Polanco,” a/k/a “David Hernandez-Enrique,” age 50, was sentenced on July 13, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) on July 13, 2023, announced U.S. Attorney Duane A. Evans.
According to court documents , MARIO HERNANDEZ-MARIN (“HERNANDEZ-MARIN”) admitted reentering the United States after being previously deported on June 23, 2011. HERNANDEZ-MARIN was sentenced by Judge Wendy B. Vitter to (3) three years of probation with eight (8) months home curfew with location monitoring. He was also ordered to pay a mandatory $100.00 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit was in charge of the prosecution.
Hartford Man Who Possessed Loaded Guns and Drugs While on State Parole Sentenced to 32 Months in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LUIS MIGUEL RODRIGUEZ, 25, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to approximately 32 months of imprisonment, time already served, and three years of supervised release, for unlawfully possessing firearms.
According to court documents and statements made, on November 19, 2020, Rodriguez’s state parole officer, with the assistance of Hartford Police, conducted an unannounced search of Rodriguez’s Hartford residence and found distribution quantities of crack cocaine and fentanyl, two loaded semi-automatic handguns, and $9,436 in cash. One for the handguns had been reported stolen in Springfield, Massachusetts.
Rodriguez’s criminal history includes state felony convictions for larceny and burglary offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Rodriguez has been detained since November 19, 2020. On May 9, 2022, he pleaded guilty to possession of a firearm by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Hartford Police Department, with the assistance of the Connecticut Department of Correction Division of Parole and Community Services. The case is being prosecuted by Assistant U.S. Attorney Kenneth Gresham.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former San Francisco Senior Building Inspector Sentenced to Prison Term for Accepting Illegal GratuitiesRead the Press Release
SAN FRANCISCO – Bernard Curran, a former San Francisco Senior Building Inspector, was sentenced today to serve a year and a day in prison in connection with charges that he accepted cash payments and charitable donations from developers and property owners whose projects Curran had responsibility for approving, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by United States Senior District Judge Susan Illston.
Curran, 62, of San Francisco, pleaded guilty to the charges on December 9, 2022. According to his plea agreement, Curran acknowledged that he was a Building Inspector for the San Francisco Department of Building Inspection (“DBI”) in 2005, and in approximately 2009, was promoted to Senior Building Inspector. As a Senior Building Inspector, Curran was responsible for conducting physical inspections of buildings and construction sites in San Francisco to verify that construction or renovation work had been completed according to approved permits and plans. Curran admitted that after he became a Senior Building Inspector, he received improper financial benefits in connection with his employment.
“San Francisco government officials must always work with the public’s best interest in mind and rebuff invitations for corrupt personal gain,” said U.S. Attorney Ramsey. “Curran is not the first, and he will not be the last, defendant sentenced in rooting out corruption in San Francisco. Today’s sentence makes clear that officials who abuse the public trust will serve time in federal custody.”
“Bernard Curran chose to line his own pockets instead of performing his duties with integrity,” said Special Agent In Charge Robert K. Tripp. “That’s not a small lapse: building inspectors ensure our new construction is safe, and play a key role in creating new housing and businesses that make San Francisco a vibrant place to live and work. Curran’s time in prison should be a stark warning to all that if you’re a public servant who takes a bribe, you will be held to account.”
According to his plea agreement, Curran admitted that he received cash payments from a San Francisco developer “in connection with and as rewards for” the inspections that he conducted or for the approvals that Curran granted as an inspector. In addition, Curran admitted that he accepted what amounted to a $260,000 interest-free loan from the same developer, $30,000 of which was never paid back. Curran admitted that he understood the developer never required the outstanding $30,000 balance to be repaid, “in part due to our friendship, but also in connection with and as a reward for conducting past and future inspections,” on the developer’s projects. Further, Curran admitted that in 2021, the San Francisco City Attorney’s Office investigated potential conflicts of interest related to his employment and, in response, Curran falsely certified that the loan he received was not from the developer, but rather was from a relative and had been issued at a 6% interest rate. Curran admitted that he submitted this false statement in an effort to deceive the City officials.
In addition to the improper gifts from the developer, Curran also admitted in his plea agreement that he accepted illegal gifts from co-defendant Rodrigo Santos. Santos, a licensed civil engineer, worked with project owners and contractors seeking building permits in San Francisco. Curran admitted that between May of 2017 and April of 2020, Santos asked some of his San Francisco clients to make “charitable” donations in connection with inspections that Curran conducted. Specifically, Curran was a volunteer for, and supporter of, a non-profit organization and Santos instructed his clients to write checks for the organization. Curran admitted that on several occasions Santos discussed with Curran the checks that his clients donated while also asking for official action to be taken on specific projects. Curran admitted that the government could prove that between May of 2017 and April of 2019, Santos’s clients wrote $9,600 in donations from 13 clients and that Curran took at least one official action for all 13 of the donors.
On November 28, 2022, Curran was charged by superseding information with two counts of accepting illegal gratuities, in violation of 18 U.S.C. § 666(a)(1)(B). Curran pleaded guilty to both counts.
In addition to the prison term, Judge Illston sentenced Curran to two years of supervised release following his prison term. The court set a further hearing on September 8, 2023, to determine the amount of restitution that Curran must pay to DBI to compensate the agency for the costs of an internal audit of projects that Curran inspected. DBI initiated the audit after the charges in this case
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office. The case is being investigated by the FBI and the IRS-CI.
Former Employee of Taste of Brazil Restaurant in Woburn Sentenced for Transferring False Identification DocumentsRead the Press Release
BOSTON – A Salvadoran man and former employee of the Taste of Brazil – Tudo Na Brasa restaurant in Woburn was sentenced today in federal court in Boston for providing false identification documents to Brazilian employees of the restaurant who lacked work authorization.
Marcos Chacon Gil, 29, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (approximately 10 months in prison) and two years of supervised release. On May 23, 2023, Chacon Gil pleaded guilty to one count of transferring false identification documents.
Chacon Gil worked at Taste of Brazil for three years beginning in 2014. Beginning in approximately 2018, Chacon Gil provided false identification documents to Brazilian employees of the restaurant who lacked work authorization in the United States. Chacon Gil did so in order for the employees to secure work authorization. In one instance, on Feb. 20, 2020, Chacon Gil met with an employee and provided the employee with a fake green card and a fake social security card.
Acting United States Attorney Joshua S. Levy; Michael Krol, Acting Special Agent in charge of Homeland Security Investigations in New England; Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General; Harry Chavis, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Woburn Police Chief Robert F. Rufo, Jr. made the announcement today. Valuable assistance in the investigation was provided by the Norwood Police Department. Assistant U.S. Attorneys James D. Herbert, Kelly Lawrence and Samuel R. Feldman of the Criminal Division prosecuted the case.Former Aroostook County Man Sentenced to 10 Years for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A man formerly from Aroostook County was sentenced today in U.S. District Court in Bangor for his role in a conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
U.S. District Judge Lance E. Walker sentenced Andrew Adams, 31, to 10 years in prison followed by five years of supervised release.
According to court records, between January 2018 and December 2021, Adams, along with others, trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties. His participation in the conspiracy resulted in contacts with local law enforcement that led to the seizure of drugs, firearms, drug paraphernalia and other items.
Adams is the sixth participant involved in the northern Maine conspiracy to be sentenced. To date, nine of the remaining 15 defendants related to the case have pleaded guilty.
The U.S. Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the police departments in Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton. U.S. Attorney Darcie McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Florida Man Sentenced to 78 Months in Prison for Conspiracy to Commit Wire FraudRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Chester Randall Dunican, 69, of Fort Pierce, Florida, has been sentenced to 78 months months in prison for his role as the leader of a conspiracy to commit wire fraud causing losses to the Grand Traverse Band of Ottawa and Chippewa Indians of over $1.1 million. U.S. District Judge Robert J. Jonker also ordered Dunican to spend three years on supervised release, to pay restitution of $1,124,290 and to forfeit $430,350, representing proceeds he personally received from his fraud.
“Every member of the Grand Traverse Band of Ottawa and Chippewa Indians was impacted by this fraudulent scheme,” said U.S. Attorney Mark Totten. “Instead of using the funds for the benefit of all tribal members, Dunican and his co-defendant, attorney Britan Douglas Groom, lied to the tribe and used the money for their personal benefit. Mr. Dunican’s conduct is particularly egregious given that he served in a fiduciary capacity as the Chief Executive Officer of the Tribe’s economic development corporation. My office is committed to holding fraudsters fully accountable for their crimes, especially those that exploit a position of public trust.”
Dunican pleaded guilty to conspiracy to commit wire fraud. From December 2015 to December 2016, Dunican served as the CEO of GTB LLC, a tribal entity focused on the development of economic opportunities for the benefit of all members of the Tribe. Dunican represented to the Tribe that he obtained exclusive distributorship rights with a proprietary water filtration company, R.O. Distributors, and that the Tribe would benefit by investing in R.O. Distributors and leasing water coolers that used this proprietary technology to various businesses in Michigan and Florida. In reality, R.O. Distributors was a shell company created and controlled by Dunican and Groom.
The Tribe invested nearly a million dollars in R.O. Distributors. Dunican directed other individuals to send most of the Tribe’s investment to another shell company, Evergreen Distributors LLC, before that entity transferred over $700,000.00 of the proceeds to the personal bank accounts of Dunican and Groom. Dunican then told the Tribe that he expected the business to grow and needed additional funding to continue acquiring inventory. When the Tribe resisted, Dunican told the Tribe that a company named High Sierra Distributors, LLC, acquired R.O. Distributors and that High Sierra was a multi-billion-dollar business that could expand the water filtration business nationwide. Dunican asked Groom to recruit someone to pretend to be a corporate representative of High Sierra at a meeting with the Tribe to pitch the additional $2 million in funding. Groom recruited a friend from Illinois who did attend the meeting pretending to be a corporate official of High Sierra. Shortly after the meeting, and before any additional funds were distributed, the Tribe discovered that this individual was actually a schoolteacher form Illinois, uncovered the fraud scheme and fired Dunican.
“Mr. Dunican and his co-defendant stole money earmarked for investment opportunities, the income from which is designed to provide various forms of assistance to members of the Grand Traverse Band of Ottawa and Chippewa Indians,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI in Michigan. “His behavior was an affront to those who trusted him to act in the Tribe’s best interest and is precisely why the FBI works with our partners to investigate those who knowingly defrauds organizations and bring them to justice.”
“Internal Revenue Service Criminal Investigation (IRS-CI) and our law enforcement partners are diligent in unraveling the fraudulent actions of those, such as Chester Dunican, who scheme to defraud victims,” said Charles Miller, Special Agent in Charge of IRS-Criminal Investigation, Detroit Field Office. “Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
The case was investigated by the Federal Bureau of Investigation, Detroit Division, Lansing, and Traverse City offices. The FBI was assisted by the Grand Traverse Band of Ottawa and Chippewa Indians Tribal Police Department and the IRS Criminal Investigation. Assistant United States Attorney Ronald M. Stella prosecuted the case.
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Felon in Possession of Gun Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Robertsdale, Alabama, man was sentenced to 25 months in prison for his illegal possession of a firearm after being convicted of a felony.
According to court documents, Justin Shea Ulrich, 44, was implicated in a drug investigation when an informant reported that Ulrich was selling methamphetamine. Agents from the Alabama Law Enforcement Agency and the Bureau of Alcohol, Tobacco, Firearms and Explosives arranged to make a controlled purchase of methamphetamine from Ulrich at his residence. Agents conducted surveillance to document the drug deal.
Agents then obtained a search warrant for Ulrich’s house. They seized additional methamphetamine and a firearm, described as a loaded Smith & Wesson 9mm pistol. Ulrich pled guilty to the drug charges in state court, and the gun charge was brought against him in federal court in Mobile. Ulrich pled guilty to the gun charge in March of 2023.United States District Court Judge Kristi K. Dubose imposed the 25-month sentence and ordered that Ulrich would also serve three years on supervised release following his imprisonment. As conditions of his supervision, Ulrich will also undergo testing and treatment for drug and/or alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Ulrich pay $100 in special assessments. The firearm used during the commission of the offense was ordered forfeited to the United States.
The case was investigated by the Alabama Law Enforcement Agency Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.