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Friday 7 July 2023
Tracy Resident Charged with Computer Attack on Discovery Bay Water Treatment FacilityRead the Press Release
OAKLAND – A federal grand jury has indicted Rambler Gallo, charging him with intentionally causing damage to a protected computer after he allegedly accessed the computer network for the Discovery Bay Water Treatment Facility, located in the Town of Discovery Bay, Calif., and intentionally uninstalled the main operational and monitoring system for the water treatment plant and then turned off the servers running those systems causing a threat to public health and safety, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp.
According to the indictment, filed June 27, 2023, and unsealed earlier today, prior to the attack on the Discovery Bay Water Treatment facility, Gallo, 53, of Tracy, Calif., was a full-time employee of a private Massachusetts-based company identified in the indictment as Company A. Company A contracted with Discovery Bay to operate the town’s wastewater treatment facility; the facility provides treatment for the water and wastewater systems for the town’s 15,000 residents. During his employment with Company A, from July of 2016 until December of 2020, Gallo was the company’s “Instrumentation and Control Tech,” with responsibility for maintaining the instrumentation and the computer systems used to control the electromechanical processes of the facility in Discovery Bay.
The indictment alleges that while Gallo was employed with Company A, he installed software on his own personal computer and on Company A’s private internal network that allowed him to gain remote access to Discovery Bay’s Water Treatment facility computer network. Then, in January of 2021, after Gallo had resigned from Company A, he allegedly accessed the facility’s computer system remotely and transmitted a command to uninstall software that was the main hub of the facility’s computer network and that protected the entire water treatment system, including water pressure, filtration, and chemical levels.
The indictment charges Gallo with one count of transmitting a program, information, code, and command to cause damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i).If convicted, Gallo faces a maximum statutory penalty of 10 years in prison and a fine of $250,000. In addition, as part of any sentence, the court may order an additional term of supervised release, additional assessments, and restitution, if appropriate. However, any sentence following conviction would 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.
The charges contained in an indictment are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Gallo made his initial federal court appearance this morning before U.S. Magistrate Judge Kandis A. Westmore. Gallo’s next appearance is scheduled for July 20, 2023 before Judge Westmore for further hearing on release conditions.
Assistant United States Attorney Cynthia Frey is prosecuting this case with assistance from Kathy Tat and Kevin Costello. The case is being investigated by the FBI.
Three Arrested for Drug Distribution at Rutland MotelRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Bradley Saldi, 43, Tina-Marie Mound, 61, and Brittany Fields, 31, have been charged with the distribution of cocaine base and fentanyl by criminal complaint. All three were arrested Thursday morning, July 6, 2023, in Rutland, Vermont during the execution of federal search warrants at the Highlander Motel. All three were living at the Highlander Motel at the time of their arrest and are scheduled to appear this afternoon before United States Magistrate Judge Kevin J. Doyle.
According to court records, law enforcement conducted numerous controlled purchases from multiple people at the Highlander Motel between December 2022 and June 2023. Saldi is alleged to have distributed cocaine base on May 15, May 16, June 12, and June 14, 2023, and fentanyl on May 15, 2023. Mound is alleged to have distributed fentanyl on December 7 and December 9, 2022, and on February 17, 2023. Fields is alleged to have distributed fentanyl on January 31, 2023, and cocaine base on June 14, 2023. All of these controlled purchases occurred on the premises of the Highlander Motel.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only, and that Saldi, Mound, and Fields remain presumed innocent until and unless they are convicted of a crime. Each defendant faces a maximum sentence of 20 years of imprisonment if convicted. The actual sentence would be determined with reference to Federal Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont State Police’s Narcotics Investigation Unit, the Federal Bureau of Investigation, the Rutland City Police Department, and Homeland Security Investigations. He also thanked the Vermont State Police’s Field Force and Tactical Services Unit for vital assistance.
The prosecutors are Assistant United States Attorneys Jason Turner and Jonathan Ophardt. Saldi, Mound, and Fields have not yet been appointed counsel.
Texas Man Sentenced to 90 Consecutive Life Sentences for Mass Shooting in El PasoRead the Press Release
EL PASO, Texas – A Texas man was sentenced in a federal court in El Paso today to 90 consecutive life sentences in prison for killing 23 people and injuring 22 more in a mass shooting at an El Paso Walmart, Aug. 3, 2019.
According to court documents, Patrick Wood Crusius, 24, was convicted on a guilty plea to a 90-count superseding indictment with 45 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and 45 counts of using a firearm during and in relation to crimes of violence. Crusius admitted that his crimes were directed at Hispanics because of their perceived race and national origin and were motivated by his desire to initiate a race war.
Over a period of months, the defendant meticulously planned and carefully prepared to commit his crimes, detailing the plan and its purpose in a manifesto he crafted and posted on the internet moments before initiating the attack on the victims and the El Paso community.
After receiving statements from some of the victims, their family members and loved ones, the court imposed 90 consecutive life sentences. Under federal law, a sentence of life imprisonment is without the possibility of parole and ends only upon the prisoner’s death. Accordingly, this sentence ensures Crusius will spend the rest of his natural life in prison.
Crusius was sentenced to one life sentence for each count in the superseding indictment for hate crime acts that resulted in the deaths of Andre Anchondo; Jordan Anchondo; Arturo Benavides; Jorge Calvillo Garcia; Guillermo Garcia; Leonardo Campos; Angelina Englisbee; Maria Flores; Raul Flores; Adolfo Cerros Hernandez; Alexander Hoffmann; David Johnson; Luis Alfonso Juarez; Maria Legarreta Rothe; Maribel Loya Hernandez; Ivan Filiberto Manzano; Gloria Irma Marquez; Elsa Mendoza Marquez; Margie Reckard; Sara Regalado Monreal; Javier Amir Rodriguez; Teresa Sanchez; and Juan Velasquez.
Crusius was also sentenced for 22 counts of hate crime acts that caused bodily injury and involved attempts to kill the 22 people injured in the shooting.
In addition to the hate crimes, Crusius was sentenced for 45 firearms violations, 23 counts of using a firearm in a federal crime of violence resulting in death, and 22 counts of using a firearm in a federal crime of violence.
“This defendant drove hundreds of miles from his home in Allen, Texas to El Paso, traveling through the night with an assault rifle and ammunition, to undertake a planned attack against Hispanics in this binational community, contending he was defending his country from the ‘cultural and ethnic replacement’ brought on by what he called the ‘Hispanic invasion of Texas,’” said First Assistant U.S. Attorney Margaret Leachman for the Western District of Texas. “Once in El Paso, he systematically targeted and killed 23 innocent people, injured 22 more, and forever changed the lives of so many others who witnessed this horrific event, leaving a haunting scar on the El Paso/Ciudad Juarez community and beyond. While this sentence cannot possibly replace the lives lost or undo the harm done to the survivors or those otherwise impacted by this horrific event, it is our hope this sentence of 90 consecutive life terms brings some finality and peace to those effected, with the knowledge that this ensures this defendant will spend the rest of his life in prison. The U.S. Attorney’s Office for the Western District of Texas will continue to aggressively prosecute those who commit violence because of bias or hate, seeking justice in the names of the victims and their loved ones.”
“Although today’s federal sentencing cannot bring back the loved ones lost or the innocence shattered on August 3rd, 2019, it is a step closer towards obtaining justice for the victims, survivors, and our El Paso community,” said Special Agent in Charge Jeffery R. Downey of the FBI El Paso Field Office. “Our hearts are with the victims, their families, and our community as El Paso continues to move forward and heal from these horrendous acts that targeted El Paso’s proud multi-cultural community. We stand together in unity with our partners at El Paso Police Department, Texas Department of Public Safety, and the many other agencies who worked so hard to get closure for the victims. The FBI will continue to seek justice for all those whose civil rights and safety are threatened by hate.”
“Sadly, August 3, 2019, is a date that is etched in the history of El Paso, Texas,” said Special Agent in Charge Jeffrey C. Boshek, II for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Dallas Field Division. “This date and horrendous act will forever be ingrained in the memories of the entire community of El Paso. Today’s sentencing is the reason we at ATF chose to protect and serve the public. The collaboration between local, state, and federal partners was key in our continuing effort to combat violent crime and maintain public safety. Although no sentence will ease the pain of this tremendous loss, this sentencing proves that senseless crimes like this will be prosecuted to the fullest extent possible.”
“Today signifies a pivotal moment for those wounded and the families tormented by the August 3rd assailant,” said Interim Chief of Police Peter Pacillas for the El Paso Police Department. “May this sentence offer them a glimmer of solace and commence their journey towards healing. Let the names of those we lost and those forever marked by this tragedy be eternally etched in our community's heart and memory."
The FBI investigated the case, in partnership with the El Paso Police Department; ATF; the Texas Department of Public Safety; the El Paso County Sheriff’s Office; the El Paso County Office of the Medical Examiner; the Allen Police Department; and the Dallas Police Department. Additionally, the United States Border Patrol, the State Department, and the Department of Homeland Security provided significant support in responding to this shooting and throughout the investigation and prosecution of this case. The U.S. Attorney’s Office is very grateful to these agencies and commends their hard work and tremendous dedication to this matter.
The U.S. Attorney’s Office and these law enforcement agencies offer our deepest condolences and sympathies to the victims and all those impacted by these horrific crimes. We are grateful for their assistance in and their patience with these lengthy federal criminal proceedings.
This defendant will now be returned to state custody to face the pending state criminal charges.
Assistant U.S. Attorneys Ian Hanna, Gregory McDonald and Patricia Acosta for the Western District of Texas El Paso Division prosecuted the case along with trial attorneys Kyle Boynton of the Civil Rights Division’s Criminal Section and Michael Warbel of the Criminal Division’s Capital Case Section.
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Texas Man Sentenced to 90 Consecutive Life Sentences for 2019 Mass Shooting at Walmart in El Paso, Texas, Killing 23 People and Injuring 22 OthersRead the Press Release
A Texas man was sentenced to 90 consecutive life sentences in prison for carrying out a mass shooting at the Cielo Vista Walmart in El Paso, Texas, on Aug. 3, 2019, killing 23 people and injuring 22 more.
On Feb. 8, Patrick Wood Crusius, 24, pleaded guilty to a 90-count indictment with 45 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and 45 counts of using a firearm during and in relation to crimes of violence. The defendant was sentenced to one life sentence for each count in the indictment, including for hate crime acts that resulted in the deaths of Andre Anchondo, Jordan Anchondo, Arturo Benavides, Jorge Calvillo Garcia, Guillermo Garcia, Leonardo Campos, Angelina Englisbee, Maria Flores, Raul Flores, Adolfo Cerros Hernandez, Alexander Hoffmann, David Johnson, Luis Alfonso Juarez, Maria Legarreta Rothe, Maribel Loya Hernandez, Ivan Filiberto Manzano, Gloria Irma Marquez, Elsa Mendoza Marquez, Margie Reckard, Sara Regalado Monreal, Javier Amir Rodriguez, Teresa Sanchez, and Juan Velasquez.
Crusius was also sentenced for 22 counts of hate crime acts that caused bodily injury and involved attempts to kill 22 people injured in the shooting. In addition to the hate crimes, Crusius was sentenced for 45 firearms violations, including 23 counts of using a firearm in a federal crime of violence resulting in death, and 22 counts of using a firearm in a federal crime of violence.
“No one in this country should have to live in fear of hate-fueled violence – that they will be targeted because of what they look like or where they are from,” said Attorney General Merrick B. Garland. “The 90 consecutive life sentences announced today guarantee that Patrick Crusius will spend the rest of his life in prison for his deadly, racist rampage in El Paso. We are grateful to the victims and their family members who have spent the last three days bravely sharing the devastation and pain they endured because of Crusius’s horrendous crimes. The Justice Department’s commitment to combating hate crimes is unwavering.”
“We are hopeful today's sentence brings a sense of justice, but the memories of the victims and our support for their families and the survivors doesn't end here,” said FBI Director Christopher Wray. “FBI employees are members of the communities we serve, and in El Paso, we will continue to help our neighbors and friends heal for as long as it takes. When anyone in our communities is threatened with violence or hate, the FBI will work with them side by side to fight for justice and we will hold the perpetrators accountable.”
“We hope this sentence will bring some small measure of justice to those impacted by this massacre of innocent people targeted for no other reason than their Hispanic identity and national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “This hate crime, that extinguished the lives of 23 innocent people, stands as one of the most horrific acts of white nationalist-driven violence in modern times. We lift up the legacies of those who lost their lives and those who survived this tragedy and will ensure that they are never forgotten. Make no mistake, white nationalist hate crimes have no place in our country today and we must bring every tool at our disposal to confront this threat.”
“This defendant systematically targeted and killed 23 innocent people, injured 22 more, and forever changed the lives of so many others who witnessed this horrific event, leaving a haunting scar on the El Paso/Ciudad Juarez community and beyond,” said First Assistant U.S. Attorney Margaret Leachman for the Western District of Texas. “While today’s sentence cannot possibly replace the lives lost or undo the harm done to the survivors and those otherwise impacted by this horrific event, it is our hope this sentence of 90 consecutive life terms brings some finality and peace to those effected. The U.S. Attorney’s Office for the Western District of Texas will continue to aggressively prosecute those who commit violence because of bias or hate, seeking justice in the names of the victims and their loved ones.”
According to court documents, Crusius previously admitted that he killed and wounded people at the Walmart because of the actual and perceived national origin of the people he expected to be at the Walmart. He further admitted that he intended to kill everyone he shot.
Crusius also admitted he wrote a manifesto, titled “An Inconvenient Truth,” and uploaded it to the internet minutes before he commenced his attack. In it, he characterized himself as a white nationalist, motivated to kill Hispanics because they were immigrating to the United States. Crusius admitted to selecting El Paso, a border city, as his target to dissuade Mexican and other Hispanic immigrants from coming to the United States.
The FBI investigated the case, in partnership with the El Paso Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Texas Department of Public Safety; the El Paso County Sheriff’s Office; the El Paso County Office of the Medical Examiner; the Allen Police Department; and the Dallas Police Department.
Assistant U.S. Attorneys Ian Hanna, Gregory McDonald, and Patricia Acosta for the Western District of Texas’ El Paso Division and Trial Attorneys Kyle Boynton of the Civil Rights Division’s Criminal Section and Michael Warbel of the Criminal Division’s Capital Case Section prosecuted the case.
For more information about the department’s efforts to combat and prevent hate crimes, visit www.justice.gov/hatecrimes.
Terrebonne Man Pleads Guilty to Trafficking Fentanyl and Firearm ViolationRead the Press Release
NEW ORLEANS, LA – JOSHUA PICOU, age 30, of Houma, Louisiana, pleaded guilty on July 6, 2023 to violations of the Federal Gun Control Act and Federal Controlled Substances Act, announced United States Attorney Duane A. Evans. Specifically, he pleaded guilty to distributing a substance containing fentanyl and cocaine and possessing fentanyl, cocaine base (“crack”), and cocaine with the intent to distribute, all in violation of Title 21 United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). He further pleaded guilty to possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, PICOU distributed a substance containing fentanyl and cocaine on May 27, June 2, and June 22, 2021. Later, on June 24, 2021, he possessed forty (40) grams or more of fentanyl, twenty-eight (28) grams or more of cocaine base, and a quantity of cocaine, with the intent to distribute those substances. On that same date, he possessed two firearms, a Glock Model 17 handgun and a Springfield Armory XDM-9. PICOU possessed those firearms while prohibited due to his prior criminal convictions. These convictions include a felony possession with intent to distribute a controlled substance in Louisiana and a misdemeanor crime of domestic violence in Louisiana.
At sentencing, for distribution of fentanyl and cocaine as well as or possession with intent to distribute cocaine charges, PICOU faces a maximum of twenty (20) years imprisonment, up to a $1,000,000.00 fine, and at least three (3) years of supervised release, as to each charged count. For possession with intent to distribute fentanyl or cocaine base, he faces a minimum of five (5) years and a maximum of forty (40) years imprisonment, up to a $5,000,000.00 fine, and at least four (4) years of supervised release. For possession of a firearm by a person convicted of a felony offense, he faces a maximum of ten (10) years imprisonment, a fine of up to $250,000, and up to three (3) years of supervised release. As to each charged count in the indictment , he also faces payment a $100.00 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Homeland Securities Investigations and the Terrebonne Parish Sherriff’s Office in investigating this matter. The case is being prosecuted by Assistant U.S. Attorney David Haller of the Violent Crime Unit.
Tacoma man sentenced to three years in prison for defrauding union retirement plansRead the Press Release
Seattle – A 52-year-old resident of Tacoma who worked as a Third Party Administrator for union health and welfare and pension plans was sentenced today in U.S. District Court in Seattle to three years in prison for wire fraud and aggravated identity theft for stealing more than $200,000 from a union member’s account and other plans, announced Acting U.S. Attorney Tessa M. Gorman. Erik A. Read was indicted in April 2022 and pleaded guilty in March 2023. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez said, Read “had a position of trust that he utilized to steal money…. This was not a onetime event…. he put together an elaborate scheme to steal money.”
“Mr. Read used his specialized knowledge to steal the money a commercial painter had paid into his pension plan, hoping his theft would go undetected,” said Acting U.S. Attorney Gorman. “Read’s conduct was a highly detailed scheme involving forged records, fake IDs, and lies to colleagues. It didn’t just harm the victim financially, it also created great stress when the worker saw his pension vanish.”
According to records filed in the case, Read worked as a third party administrator for three different union plans from which he improperly diverted funds: the Western Washington Painter Defined Contribution Pension Plan, the International Brotherhood of Electrical Workers Local 191 Health and Welfare Plan, as well as the Washington State Plumbing and Pipefitting Industry Plan.
Court records detail how he stole from the account of one of the members of the painters’ union – a person who was listed as a “missing participant,” meaning he was no longer actively participating in the plan. Between April 2018 and May 2019, Read falsified records, forged signatures, and doctored a driver’s license to make it appear that the victim wanted his funds withdrawn from the fund to pay for medical treatment for a terminal illness. Read claimed to his coworkers that he was going to deliver the checks by hand to the victim and his family. In fact, Read deposited the checks into his own bank account. Even as he was earning $150,000 a year, he was improperly taking funds from the pension plans that he worked on. Read has agreed to pay $294,251 to the victim pension plans or their insurers.
In asking for a four-year prison term, prosecutor Brian Wynne wrote to the court, “While the financial impacts of Read’s crimes were great, the non-financial impacts on both individuals Read worked for and on behalf of are unquantifiable. The impacts include the stress on (one victim) upon learning his retirement had been stolen and his efforts to recoup it. The impacts also include the stress experienced by Read’s colleagues who unwittingly helped Read carry out the fraud and the stress and managerial impacts on the trusts whose plans Read administered.”
The case was investigated by the U.S. Department of Labor. The case was prosecuted by Assistant United States Attorneys Sok Tea Jiang, Brian J. Wynne, and Jehiel I. Baer.
Springfield Man Sentenced to 17 Years for Drug-Trafficking ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for leading a drug-trafficking conspiracy.
Herman G. Mercado, 40, was sentenced by U.S. District Judge Brian C. Wimes to 17 years and six months in federal prison without parole.
On Jan. 24, 2023, Mercado pleaded guilty to conspiracy to distribute cocaine, marijuana, and methamphetamine.
According to court documents, Mercado was the leader of a drug-trafficking conspiracy responsible for the distribution of 3.99 kilograms of cocaine, 61.57 kilograms of methamphetamine, and 2,440 kilograms of marijuana from April 19, 2017, to Oct. 2, 2019. Mercado admitted that he sold cocaine, methamphetamine, and ecstasy to a law enforcement confidential informant on several occasions.
In October 2019, law enforcement officers executed a search warrant at the residence of Mercado’s daughter in Springfield. Officers seized 5.382 kilograms of methamphetamine that belonged to Mercado.
Mercado was convicted in the Middle District of Pennsylvania for possession with the intent to distribute cocaine, for which he received a 10-year prison sentence followed by five years of supervised release. During his period of supervised release, Mercado engaged in the drug distribution activity in this case.
Mercado is the fourth defendant sentenced in this case. Daniel T. Sutton, 25, of Springfield, was sentenced to 11 years in federal prison without parole. Carmine Guzmanperalta, 34, address unknown, was sentenced to 10 years in federal prison without parole. William O. Evans, 54, of Springfield, was sentenced to 100 months in federal prison without parole. Co-defendants Alex Santiago-Negron, Jr., 28, address unknown, and Colleen A. Mahon, 28, of Springfield, have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Springfield, Mo., Police Department, IRS-Criminal Investigation, the Missouri State Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Organized Crime and Drug Enforcement Task Force
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.
Southern California Edison, Tree Service and Telecommunications Companies Pay $22 Million to Settle Claims from the 2016 Rey FireRead the Press Release
LOS ANGELES – Southern California Edison (SCE); Utility Tree Service LLC (UTS); and Frontier Communications Holdings LLC have paid the United States $22 million to resolve claims on behalf of the U.S. Forest Service to recoup costs and damages associated with a 2016 wildfire in the Los Padres National Forest, the Justice Department announced today.
The Rey Fire ignited on August 18, 2016, when a tree fell onto powerlines and communication lines owned, respectively, by SCE and Frontier. In 2019, the United States filed a lawsuit on behalf of the Forest Service against SCE and Frontier — as well as UTS, which was SCE’s vegetation management contractor — to recover costs for the extensive damages that the Rey Fire caused.
The United States alleged that the impact of the tree on Frontier’s and SCE’s lines caused a malfunction of SCE’s power equipment farther down the power lines and caused an energized power line to fall to the ground. The energized power line ignited adjacent dry vegetation. The Rey Fire burned more than 32,000 acres, including 19,000 acres of National Forest System lands in Santa Barbara County.
“This settlement will compensate the public for the expense of fighting the Rey Fire and restoring these federal lands that are enjoyed by all Americans,” First Assistant United States Attorney Joseph T. McNally said. “The U.S. Attorney’s Office will continue to aggressively pursue recovery against those who cause damages to our precious national resources.”
SCE, UTS, and Frontier agreed to pay the settlement without admitting wrongdoing or fault.
This case was handled by Assistant United States Attorneys Matthew Barragan and Margaret Chen of the Complex and Defensive Litigation Section.
Six Defendants Indicted for Meth Conspiracy, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Six southern Missouri residents have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine as well as illegally possessing firearms.
Robert Jason Smith, 47, Terry M. Schenks, 53, Randy L. Johns, 45, and Jill M. Matthews, 45, all of Ozark, Mo.; Michael R. Goodwin, 41, of Springfield; and Evelyn J. Dame, 48, of Lebanon, Mo., were charged in a 19-count indictment returned under seal by a federal grand jury in Springfield on June 28, 2023. That indictment was unsealed and made public on Wednesday, July 5, upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that all six defendants participated in a conspiracy to distribute methamphetamine in Christian and Greene counties from Dec. 16, 2020, to June 2, 2022.
In addition to the drug-trafficking conspiracy, Goodwin is charged with two counts of possessing 500 grams or more of methamphetamine with the intent to distribute, three counts of possessing 50 grams or more of methamphetamine with the intent to distribute, one count of possessing fentanyl with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and three counts of being a felon in possession of a firearm. Goodwin allegedly possessed a Glock 9mm semi-automatic pistol on June 30, 2021, a SARS Arms 9mm semi-automatic pistol on Sept. 2, 2021, and a North American Arms .22 magnum revolver on Dec. 13, 2021.
Schenks also is charged with one count of possessing 50 grams or more of methamphetamine to distribute, one count of distributing methamphetamine, and one count of being a felon in possession of firearms. Schenks allegedly possessed a Spike’s Tactical .223-caliber/5.56mm semi-automatic rifle, a DPMS .223-caliber/5.56mm semi-automatic rifle, two Maverick 12-gauge shotguns, a SCCY 9mm semi-automatic pistol, and a Bersa .380-caliber semi-automatic pistol on June 2, 2022.
Smith also is charged with one count of distributing methamphetamine, one count of possessing 50 grams or more of methamphetamine with the intent to distribute, and one count of being a felon in possession of ammunition.
Dame is also charged in one count of possessing 500 grams or more of methamphetamine with the intent to distribute.
Johns and Matthews also are charged together in one count of possessing 50 grams or more of methamphetamine with the intent to distribute.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges 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 Jessica R. Eatmon. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Christian County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Greene County, Mo., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
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.
Sentencian a 90 cadenas perpetuas consecutivas al hombre de Texas responsable del tiroteo masivo de 2019 en el Walmart de El Paso, Texas, que dejó 23 muertos y 22 heridosRead the Press Release
Un hombre de Texas fue sentenciado a 90 cadenas perpetuas consecutivas por llevar a cabo un tiroteo masivo en el Walmart de Cielo Vista en El Paso, Texas, el 3 de agosto de 2019, donde mató a 23 personas e hirió a otras 22.
El 8 de febrero, Patrick Wood Crusius (24) se declaró culpable de los 90 cargos de la acusación, que incluían 45 cargos por violar la Ley para la Prevención de Delitos de Odio Matthew Shepard y James Byrd Jr., y 45 cargos por usar un arma de fuego durante y en relación con delitos de violencia. El acusado fue sentenciado a una cadena perpetua por cada cargo en la acusación, inclusive por los actos de delito de odio que ocasionaron la muerte de Andre Anchondo, Jordan Anchondo, Arturo Benavides, Jorge Calvillo Garcia, Guillermo Garcia, Leonardo Campos, Angelina Englisbee, Maria Flores, Raul Flores, Adolfo Cerros Hernandez, Alexander Hoffmann, David Johnson, Luis Alfonso Juarez, Maria Legarreta Rothe, Maribel Loya Hernandez, Ivan Filiberto Manzano, Gloria Irma Marquez, Elsa Mendoza Marquez, Margie Reckard, Sara Regalado Monreal, Javier Amir Rodriguez, Teresa Sanchez y Juan Velasquez.
Crusius también fue sentenciado por 22 cargos de actos de delito de odio que ocasionaron lesiones personales e implicaron tentativa de asesinar a otras 22 personas en el tiroteo. Además de los delitos de odio, Crusius fue sentenciado por 45 violaciones relacionadas con el uso de armas de fuego, entre las que se incluyen 23 cargos por usar un arma de fuego en un delito federal de violencia con resultado mortal y 22 cargos por usar un arma de fuego en un delito federal de violencia.
“Nadie en este país debería vivir con miedo a sufrir violencia alimentada por el odio, pensando que pueden ser atacados por la forma en que se ven o por el lugar del que provienen”, afirmó el fiscal general Merrick B. Garland. “Las 90 cadenas perpetuas consecutivas anunciadas hoy garantizan que Patrick Crusius pasará el resto de su vida en prisión por su masacre racista en El Paso. Les agradecemos a las víctimas y a sus familiares que han pasados los últimos tres días compartiendo con mucha valentía la desolación y el dolor que han atravesado debido a los atroces delitos cometidos por Crusius. El compromiso asumido por el Departamento de Justicia para combatir los delitos de odio es inquebrantable”.
“Esperamos que la sentencia de hoy traiga un sentido de justicia, pero las memorias de las víctimas y nuestro apoyo a las familias y los sobrevivientes no acaban aquí”, afirmó el director del FBI Christopher Wray. “Los empleados del FBI son miembros de las comunidades para las que trabajamos y, en El Paso, seguiremos ayudando a nuestros vecinos y amigos a sanar estas heridas durante el tiempo que sea necesario. Cuando cualquier miembro de nuestra comunidad sea amenazado con violencia u odio, el FBI trabajará a su lado para luchar por la justicia y responsabilizar a los culpables”.
“Esperamos que esta sentencia traiga algo de justicia a aquellos afectados por esta masacre de personas inocentes atacadas por ningún otro motivo más que su identidad y nacionalidad hispanas”, dijo la fiscal general adjunta Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este delito de odio, que acabó con la vida de 23 personas inocentes, se destaca como uno de los actos más espantosos de violencia fundada en el nacionalismo blanco que se ha registrado en los tiempos modernos. Honraremos el legado de aquellos que perdieron la vida y aquellos que sobrevivieron a esta tragedia, y nos aseguraremos de que nunca sean olvidados. No se equivoquen: los delitos de odio de los nacionalistas blancos no tienen lugar en nuestro país actualmente y debemos usar todas las herramientas que estén a nuestro alcance para hacer frente a esta amenaza”.
“Este acusado atacó sistemáticamente y asesinó a 23 personas inocentes, hirió a otras 22 y cambió para siempre la vida de muchas otras personas que presenciaron este hecho espantoso, dejando una cicatriz imborrable en la comunidad de El Paso/Ciudad Juarez y los alrededores”, dijo la primera fiscal federal adjunta del Distrito Occidental de Texas Margaret Leachman. “Si bien la sentencia de hoy no puede devolver las vidas perdidas ni reparar el daño causado a los sobrevivientes y aquellos afectados de otras formas por este espantoso hecho, esperamos que esta sentencia de 90 cadenas perpetuas consecutivas traiga algo de paz a los afectados y les permita cerrar una etapa. La Oficina del Fiscal Federal para el Distrito Occidental de Texas continuará procesando enérgicamente a todos aquellos que cometan violencia motivada por prejuicios u odio, para buscar justicia en nombre de las víctimas y sus seres queridos”.
Según los documentos judiciales, Crusius había admitido que asesinó e hirió a las personas en el Walmart debido a la nacionalidad real y percibida de las personas que esperaba encontrar en el Walmart. Además, admitió que su intención era asesinar a todas las personas a las que les disparó.
Crusius también admitió que escribió un manifiesto llamado “Una verdad incómoda” y lo subió a internet unos minutos antes de comenzar el ataque. En él, se describía a sí mismo como un nacionalista blanco, motivado a matar hispanos porque inmigraban a Estados Unidos. Crusius admitió que había seleccionado El Paso, una ciudad fronteriza, como su objetivo para disuadir a los mexicanos y otros inmigrantes hispanos de venir a los Estados Unidos.
El FBI investigó el caso, junto con el Departamento de Policía de El Paso; la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos (ATF); el Departamento de Seguridad Pública de Texas; la Oficina del Alguacil del Condado de El Paso; la Oficina del Médico Forense del Condado de El Paso; el Departamento de Policía de Allen; y el Departamento de Policía de Dallas.
El caso fue procesado por los fiscales federales adjuntos Ian Hanna, Gregory McDonald y Patricia Acosta para la División de El Paso del Distrito Occidental de Texas, y los abogados litigantes Kyle Boynton de la Sección Penal de la División de Derechos Civiles y Michael Warbel de la Sección de Casos Capitales de la División Penal.
Para obtener más información sobre los esfuerzos del Departamento para combatir y prevenir los delitos de odio, visite www.justice.gov/hatecrimes.
Actualizado el 7 de julio de 2023.
Rochester Man Going to Prison on Carjacking and Gun ChargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Devin C. Johnson, Jr., 32, of Rochester, NY, who was convicted of carjacking and discharge of a firearm in relation to a crime of violence, was sentenced to serve 174 months by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that on April 14, 2022, Johnson approached a taxicab driver (Victim) at a gas station on Dewey Avenue and asked for a ride to Lake Avenue and Flower City Park. During the ride, Johnson pressed a handgun against the Victim’s stomach and demanded his cell phone and car keys. The Victim drove back to the gas station and got out of the taxicab with his car keys after a brief struggle inside the vehicle. Johnson grabbed the Victim, threw him to the ground, and forcibly took the car keys from him, striking him twice in the head with the butt end of the handgun. Johnson also pointed the gun at Victim 1 and discharged one round, striking the ground next to the Victim. Johnson then took off in the Victim’s vehicle. A Monroe County Sheriff Sergeant attempted to conduct a traffic stop on the stolen vehicle near Salmon Creek Road in Spencerport, NY. Johnson got out of the vehicle and fled but was taken into custody after a short foot pursuit and turned over to Rochester Police officers. A 9mm pistol, which was reported stolen in South Carolina, was found nearby where Johnson fled.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is 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.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Police Chief David Smith, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Rochester Man Going to Prison for Selling FentanylRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Colon, 31, of Rochester, NY, who was convicted of possession with intent to distribute fentanyl, was sentenced to serve 24 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Cassie M. Kocher, who handled the case, stated that between January 2022, and March 9, 2022, Colon sold quantities of cocaine, fentanyl, and/or para-fluorofentanyl to an undercover law enforcement officer on different occasions, which resulted in an arrest warrant being issued on March 23, 2022. Colon was taken into custody on May 30, 2022. At that time, he possessed approximately 189 baggies containing fentanyl, approximately 16 baggies of cocaine, and $1,748 in cash, which represented drug proceeds.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the Greater Rochester Area Narcotics Enforcement Team, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
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Owner of Chester Unlicensed Group Home Sentenced for Medicaid and VRS FraudRead the Press Release
RICHMOND, Va. – A Chester woman was sentenced today to 51 months in prison for conspiracy to commit health care fraud, health care fraud, and wire fraud, all stemming from her operation of a Richmond metro-area health care services company.
According to court documents, between 2014 and 2021, Sharon Johnson, 58, owned and operated “Sharon Y. Johnson & Associates” (SYJA). Johnson’s company purportedly provided Medicaid-reimbursed services that included both Service Facilitator services—supervising a Medicaid recipient’s personal care plan and provider—and personal care services—home health care aid services designed to allow a recipient to remain at home, rather than entering a nursing home or group home. Johnson signed up numerous of her Service Facilitator clients, often without their awareness or informed consent, to receive personal care services from her company. Johnson utilized her personal residence in Chester—a single-story, three-bedroom, 1,326-square foot structure—as an unlicensed group home, housing up to a half-dozen Medicaid recipients, in addition to Johnson and another SYJA employee, at any given time.
Between 2014 and 2021, Johnson fraudulently billed Medicaid for personal care services purportedly provided to at least 14 of her patients, knowingly submitting timesheets to Medicaid that falsely claimed that certain SYJA aides had provided services, when, in fact, those purported SYJA employees had not provided home health care services to the patients in question. To execute this fraud scheme, Johnson and her co-conspirators created online patient portal accounts in the names of her patients, and thereafter assumed those patients’ identities when “approving” and routing billing requests for SYJA home health care services that had not, in fact, been provided.
Separately, Johnson also executed a scheme to defraud the Virginia Retirement System (VRS) of pension payments paid by the VRS to one of Johnson’s unlicensed group home residents. To obtain control over her patient’s financial affairs, Johnson submitted fraudulent documents to the VRS including a “Medical Power of Attorney” form, and, after her patient’s death, changed the direct deposit location of her now-deceased patient’s VRS pension payments to Johnson’s own bank account. VRS thereafter paid at least 8 monthly pension payments into Johnson’s bank account before belatedly confirming the patient’s death. Johnson, knowing she was not entitled to those VRS funds, spent those payments for her own purposes.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorneys Thomas A. Garnett and Shea Gibbons prosecuted the case.
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. 3:22-cr-16.
Orange County Businessman Pleads Guilty to Tax Evasion for Failing to Report Nearly $9 Million of His Company’s IncomeRead the Press Release
SANTA ANA, California – The owner of a Newport Beach-based artificial turf company pleaded guilty today to a federal criminal charge for failing to report nearly $9 million in income his business earned and for attempting to evade the payment of more than $946,000 in federal income taxes.
Craig Steven Voyton, 56, of San Pedro, pleaded guilty to one count of tax evasion.
Voyton owns and operates Smart Grass LLC, which installs artificial turf for residential and commercial customers in Orange and Los Angeles counties.
According to his plea agreement, from 2016 to 2020, Smart Grass generated more than $1.5 million in gross income per year from its business operations, and – not wanting to pay taxes that income – Voyton attempted to conceal that income from the IRS.
To do so, Voyton emailed customers federal tax forms listing false identification information, so if and when the customers reported to the IRS the payments they had made to him and his company, those payments would not tie for tax purposes directly to Voyton or Smart Grass.
On three occasions in 2020, Voyton emailed to customers in Los Angeles and Beverly Hills an IRS Form W-9 with false information and a signature in a fictitious identity. Voyton admitted in his plea agreement to sending similar fraudulent IRS Forms W-9 during the tax years 2016, 2017, 2018 and 2019. Voyton further admitted to providing a false IRS Form W-9 to a school in Irvine in August 2016.
While attempting to evade the payment of taxes during this time, Voyton made more than $63,000 in transfers to the Coinbase cryptocurrency exchange from a Smart Grass bank account. Voyton also used more than $500,000 in company funds to make real estate purchases in Nevada and Mexico.
In total, Voyton failed to report approximately $8,926,333 in income, which prevented the IRS from assessing the total sum of approximately $946,479 in federal income taxes for the tax years 2016 through 2020.
Voyton has agreed that before sentencing, he will pay the IRS all the back taxes he owes, plus interest, as well as paying an additional 75% fraud penalty.
United States District Judge John W. Holcomb scheduled a September 8 sentencing hearing, at which time Voyton will face a statutory maximum sentence of five years in federal prison.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Omaha Woman and Oakland Couple Sentenced for Government Loan Program FraudRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Jazmyne L. McMiller, 36, of Omaha, Nebraska, was sentenced on July 6, 2023, by United States District Judge Brian C. Buescher to twelve months and one day of imprisonment for Conspiracy to Commit Wire Fraud. After McMiller’s release from prison, she will begin a three-year term of supervised release. There is no parole in the federal system. McMiller was also ordered to pay restitution of $267,040.20.
McMiller was the third defendant to be convicted and sentenced in connection with this case. On February 8, 2023, Sharon M. Thompson, 62, of Oakland, Nebraska, was sentenced by Judge Buescher to four years of probation for Conspiracy to Commit Wire Fraud. Sharon Thompson was also ordered to pay restitution of $355,020.30.
On May 31, 2023, Todd A. Thompson, 57, of Oakland, Nebraska, was sentenced by Judge Buescher to 41 months’ imprisonment for Conspiracy to Commit Wire Fraud. He will serve two years of supervised release. Todd Thompson was also ordered to pay restitution of $1,193,957.10.
During 2020 and 2021, all three defendants submitted applications for Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program loans. The PPP and EIDL loan programs were created or expanded by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic.
The applications submitted or caused to be submitted by all three defendants misrepresented how much the applicant businesses had paid employees in past compensation and how much revenue each had received, resulting in significantly inflated loan amounts under the PPP and EIDL programs. The PPP applications were supported by false documents that Todd Thompson helped prepare, including false tax forms that each defendant signed.
In total, McMiller submitted or caused to be submitted fraudulent applications seeking loans in the amount of approximately $404,324 and obtained $254,324. The fraudulent applications Sharon Thompson signed sought loans totaling approximately $469,886, and she obtained $344,786. The fraudulent applications Todd Thompson signed sought loans totaling approximately $1,368,892.00, and he obtained $552,892.00. In total, the three defendants submitted fraudulent applications seeking loans totaling $2,243,102.00 and obtained $1,152,002.00.
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.
This case was investigated by the Federal Bureau of Investigation.
Omaha Man Sentenced to 12 Months and 1 Day for Theft of Government PropertyRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Jeffrey Bowlin, 55, of Omaha, Nebraska was sentenced on July 6, 2023, in federal court in Omaha for theft of government property. The Honorable Brian C. Buescher sentenced Bowlin to 12 months and one day in prison. There is no parole in the federal system. After his release from prison, Bowlin will begin a three-year term of supervised release. Bowlin was also ordered to pay $855.37 in restitution.
On multiple occasions in April and May 2022, Bowlin, who had been placed on leave from his position as Manager of Distribution Operations for the United States Postal Service, donned a mask, hood, and gloves and entered the Papillion, Nebraska, Post Office at night and rifled through packages, mail, and postal employee work areas to locate and take cash, controlled substances, and other items of value. At least 40 victims were able to be identified by the United States Postal Service.
This case was investigated by the United States Postal Service Office of Inspector General.
Omaha Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan T. Lehr announced that David Gonzalez-Jimenez, 24, of Omaha, Nebraska, was sentenced on July 5, 2023, by Chief United States District Judge Robert F. Rossiter, Jr. to 78 months’ imprisonment to be followed by four years of supervised release. There is no parole in the federal system. Gonzalez-Jimenez pled guilty in March 2023 to Conspiracy to Distribute Methamphetamine.
In 2022, Gonzalez-Jimenez delivered approximately one pound of methamphetamine to a cooperating individual. Officers later recovered approximately $14,425 cash and an additional approximately one pound of methamphetamine from Gonzalez-Jimenez’s residence and vehicle. The cash was forfeited.
This case was investigated by the Omaha Police Department.
Omaha Man Sentenced for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Jeramie D. Watts, 35, of Omaha, Nebraska, was sentenced on July 6, 2023, in federal court in Omaha for distributing methamphetamine. United States District Judge Brian C. Buescher sentenced Watts to 12 months plus 1 day imprisonment. There is no parole in the federal system. After his release from prison, Watts will begin a 3-year term of supervised release.
On April 20, 2018, an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives agent purchased 11 grams of methamphetamine from Watts for $500 in the parking lot of a West Omaha business. Watts entered the passenger side of the agent’s vehicle and produced the methamphetamine before leaving the area. A forensic lab confirmed the methamphetamine as weighing 11.7 grams with a purity of 95%.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Omaha Man Sentenced for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Eduardo Ordaz, 25, of Omaha, Nebraska, was sentenced on July 6, 2023, in federal court in Omaha for distributing 5 grams or more of actual methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ordaz to 60 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 2-year term of supervised release.
On September 28, 2021, law enforcement utilized a cooperating witness (CW) to make a controlled buy of methamphetamine from Ordaz. The controlled buy took place in the CW's vehicle in the area of 23rd and Elm Streets in Omaha. The CW purchased 46 grams of methamphetamine with a purity of 95%, as confirmed by a forensic laboratory analysis.
This case was investigated by the Omaha Police Department.
Norfolk, Nebraska Man Sentenced in Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Roberto Nava, 49, of Norfolk, Nebraska, was sentenced on July 6, 2023, in federal court in Omaha, Nebraska, for possession with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Nava to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, Nava will begin a five-year term of supervised release. He will also forfeit $42,000 in drug proceeds to the United States.
In August 2021, Drug Enforcement Administration agents became aware that a person by the name of Roberto Nava was distributing pound quantities of methamphetamine in the Norfolk area. Utilizing a confidential source, agents made arrangements to purchase methamphetamine on two occasions. On each buy, Nava arrived and delivered methamphetamine. On August 24, 2021, Nava delivered one pound of methamphetamine and on September 23, 2021, he delivered two pounds of methamphetamine
Following the controlled buy on September 23, 2021, agents then executed a search warrant on Nava’s residence. As a result, agents recovered an additional half pound of methamphetamine and $42,000 in drug proceeds. A forensic laboratory analysis confirmed the methamphetamine as 95% pure.
This case was investigated by the Drug Enforcement Administration.
New York Man Sentenced to 17 and a Half Years in Prison for Sexual Exploitation of Children and Distribution of Child PornographyRead the Press Release
WASHINGTON – Vincent Galarza, 32, of Glendale, New York, was sentenced today to 17 and a half years – or 210 months – in prison for his involvement and participation in the world’s formerly largest darknet child pornography website, Welcome To Video.
Galarza pleaded guilty on Jan. 17, 2023, to sexual exploitation of children and conspiracy to distribute child pornography.
Galarza is one of eight prolific users of the website Welcome to Video, charged in the District of Columbia for their participation in a massive darknet advertisement and distribution of child pornography. Welcome To Video operated as a hidden service on the Tor network until March 2018, when it was seized by law enforcement authorities. As of October 2019, when the Department initially announced its indictment of Welcome to Video site administrator Jong Woo Son (a South Korean national, subsequently convicted in South Korea), an additional 337 site users worldwide had been arrested and charged.
Additional defendants charged and convicted in the District of Columbia include Nicholas Stengel, 47, of Washington, D.C.; Charles Wunderlich, 36, of Hot Springs, California; Ernest Wagner, 72, of Federal Way, Washington; Darryl Miller, 36, of Shawnee, Kansas; Jason DeJournett, 47, of Seal Beach, California; Brian LaPrath, 36, of San Diego, California; and Michael Ezeagbor, 24, of Pflugerville, Texas.
According to court documents, users of the website created registered accounts with usernames and a password. Only after the user registered an account could the user browse previews of videos available for download and post text to the website. To download videos from the site, users needed “points,” which were allocated to users by the website. A registered user could earn points from the website in several ways, including uploading videos depicting child pornography, referring new users to the website, and paying for a “VIP” account with Bitcoin.
Court documents show that certain persons joined the conspiracy to distribute child pornography by uploading videos. Those co-conspirators who uploaded videos of child pornography for “points” also earned additional “points” each time a customer of the site downloaded that particular video. Court documents state that the co-conspirators had a shared goal as part of the conspiracy – increasing the number of unique videos on the website to drive additional traffic to it, which in turn led to greater downloads and more points for the co-conspirators.
The following is a summary of the conduct of each defendant charged in the District of Columbia.
Vincent Galarza
Between approximately May 31, 2017, and February 9, 2018, Galarza downloaded at least 174 videos from the website and uploaded approximately 560 videos, all of which depicted child pornography. A subsequent forensic search of Galarza’s electronic devices revealed that he was in possession of an additional 500 images and 102 videos of child pornography, the majority of which depicted sexually explicit conduct of pre-pubescent children.
During the search of the electronic devices, court documents say that authorities identified two minor victims that had been secretly recorded by Galarza. Galarza captured at least 20 videos of one of the minor victims that he then edited and clipped to produce over 966 still-shot images that focused on the same minor’s genitalia and pubic area.
Investigators also determined that Galarza had used images produced of one of the minor victims in an attempt to extort the victim into sending him additional images.
Nicholas Stengel
Stengel was sentenced to 180 months in prison and a lifetime of supervised release after he pleaded guilty to receipt of child pornography and laundering of monetary instruments. Stengel had a previous conviction for possession of child pornography. Stengel had amassed an extensive collection of child pornography from the website, with over 6,000 videos and 600,000 images.
Charles Wunderlich
Wunderlich was sentenced to 87 months in prison and 15 years of supervised release on June 28, 2022, after he pleaded guilty to one count of conspiracy to distribute child pornography. Wunderlich uploaded 13 videos and downloaded four videos of child pornography from the website.
Ernest Wagner
Wagner was sentenced to 60 months in prison and a lifetime of supervised release on June 4, 2021, after he pleaded guilty to one count of conspiracy to distribute child pornography. Wagner uploaded 84 videos and downloaded 40 videos depicting child pornography from the website. A forensic review of his electronic devices identified an additional 92 images and 22 videos depicting child pornography in his possession.
Darryl Miller
Miller was sentenced to 60 months in prison and five years of supervised release in the District of Kansas on Sept. 22, 2020, after he pleaded guilty to access with intent to view child pornography. Miller downloaded approximately 20 gigabytes of data from the website and had approximately 57 child pornography images on his devices.
Jason DeJournett
DeJournett was sentenced to 33 months in prison and a lifetime of supervised release on July 30, 2021, after he pleaded guilty to access with intent to view child pornography. DeJournett downloaded 113 videos of child pornography from the website.
Brian LaPrath
LaPrath was sentenced to 18 months in prison on June 19, 2019, after he pleaded guilty to laundering monetary instruments. LaPrath exchanged funds to obtain Bitcoin and used that Bitcoin to download child pornography from the website
Michael Ezeagbor
Ezeagbor was sentenced to time served and five years of supervised release on June 25, 2021, in the Western District of Texas after he pleaded guilty to one count of conspiracy to distribute child pornography. Ezeagbor uploaded ten videos and downloaded 42 videos depicting child pornography from the website. A subsequent forensic review of his electronic devices identified an additional 190 images and 14 videos depicting child pornography in his possession.
Additional investigations into those affiliated with Welcome To Video remain ongoing.
These cases were investigated by IRS Criminal Investigation (IRS-CI) and U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI). The Korean National Police of the Republic of Korea, the National Crime Agency (NCA) of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.
These cases were prosecuted by Assistant U.S. Attorney (AUSA) Lindsay Suttenberg, former AUSA Zia M. Faruqui, and former AUSA Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section.
Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.
New York Man Indicted for Human SmugglingRead the Press Release
CONCORD – A Brooklyn, New York man was indicted in connection with smuggling unauthorized immigrants across the Canadian border, U.S. Attorney Jane E. Young announces.
Abraham Hernandez, 27, was indicted on three counts of bringing in and harboring certain aliens. Hernandez will appear in federal court in Concord at a later date.
According to the charging documents, on June 13, 2023, the Royal Canadian Mounted Police advised the U.S. Border Patrol that individuals with backpacks were walking southbound from Canada toward Halls Stream Road in Pittsburg, New Hampshire. Hernandez was later stopped by law enforcement in Pittsburg, New Hampshire while transporting nine unauthorized immigrants in a white Honda SUV.
The charge of bringing in and harboring certain aliens provides for a sentence of up to five years in prison, up to 3 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.
United States Border Patrol led the investigation. Assistant U.S. Attorney Geoffrey Ward is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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New Orleans Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – On July 6, 2023, TERRANCE RICHARDS, age 38, of New Orleans, pleaded guilty to possessing ammunition while being a convicted felon, announced U.S. Attorney Duane A. Evans.
According to court documents, on August 22, 2020, New Orleans Police Department (NOPD) officers were sent to the intersection of General Ogden and Olive Streets in New Orleans following a report of shots being fired. Through further investigation, NOPD and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) identified RICHARDS as one of the shooters. RICHARDS’s prior felony convictions for attempted distribution of cocaine (2010), possession of cocaine (2010), felon in possession of a firearm (2011), and distribution of cocaine (2012), prohibits his possession of a firearm.
RICHARDS faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. He also faces payment of a $100 mandatory special assessment fee. RICHARDS will be sentenced on October 26, 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 case is being prosecuted by Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit.
New Orleans Man Pleads Guilty for Distribution of Methamphetamine and Maintaining a Drug PremisesRead the Press Release
NEW ORLEANS, LOUISIANA – On July 7, 2023, RYAN NEGROTTO, age 43 of New Orleans, pled guilty in federal court to all counts with which he was charged in a superseding indictment, announced U.S. Attorney Duane A. Evans.
Count 1 charged NEGROTTO with conspiracy to distribute methamphetamine, in violation of 21 U.S.C §§ 841(a)(1), 841(b)(1)(A), and 846.
Count 2 charged NEGROTTO with distribution and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), and 18 U.S.C § 2. Count 3 charged NEGROTTO with distribution and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 18 U.S.C § 2. Count 4 charged NEGROTTO with distribution of methamphetamine, in violation of 21 U.S.C §§ 841(a)(1), 841(b)(1)(A), and 18 U.S.C § 2.
Count 5 and Count 7 charged NEGROTTO with possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C § 924(c)(1)(A)(i).
Count 6 charged NEGROTTO with possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B).
Finally, Count 8 charged NEGROTTO with using or maintaining a drug premises in violation of 21 U.S.C § 856(a)(1) and 18 U.S.C § 2.
As to Counts 1, 3, 4, and 6, NEGROTTO faces a minimum imprisonment term of 10 years up to a maximum term of life, a fine of up to $10 million, and at least 5 years of supervised release.
As to Count 2, NEGROTTO faces a minimum imprisonment term of 5 years, up to a maximum of 40 years, a fine of up to $5 million, and at least 4 years of supervised release.
As to Counts 5 and 7, NEGROTTO faces a minimum, term of imprisonment of 5 years, up to a maximum term of life, a fine up to $250,000, and up to 5 years of supervised release.
Finally, as to Count 8, NEGROTTO faces a maximum term of imprisonment of 20 years, a fine up to $500,000, and up to 3 years of supervised release.
As to each charged count, NEGROTTO faces payment of a mandatory special assessment fee of $100.00.
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, the New Orleans Police Department, and the Louisiana State Police. Assistant United States Attorney Mike Trummel of the Violent Crime Unit is handling the prosecution.
Nebraska Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Luis Lazo-Escobar, 32, of Nebraska, was sentenced on July 6, 2023, in federal court in Omaha, Nebraska, for being a felon in possession of a firearm and ammunition. United States District Judge Brian C. Buescher sentenced Lazo-Escobar to 60 months’ imprisonment and the forfeiture of $12,100.00 in U.S. currency. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
On November 20, 2020, the Buffalo County Sheriff’s Office conducted a traffic stop on a 2012 Honda Civic with Luis Lazo-Escobar as the driver. In March 2021, Lexington Police conducted an interview with a subject who knew there was a gun and possibly methamphetamine inside of this vehicle. Law enforcement obtained a search warrant for the vehicle, which had been impounded and remained in police custody, and located the following contraband: a 9mm Taurus handgun, 150 rounds of ammunition, and $12,100 in United States currency. Lazo-Escobar is a convicted felon stemming from a possession of a controlled substance conviction in 2017.
This case was investigated by the Kearney Police Department.
National Grid Agrees to Pay $5.38 Million for Natural Resource DamagesRead the Press Release
National Grid has agreed to pay $5.38 million to federal and state natural resource trustees to resolve claims for natural resource damages from releases of hazardous chemicals connected to the former Gloucester Gas Light Company located in Gloucester, Massachusetts.
Between 1854 and 1952, the former Gloucester Gas Light Company operated a manufactured gas plant along the Gloucester waterfront. The plant used industrial processes to produce manufactured gas from coal and oil. Manufactured gas plants, which were common before the development of natural gas pipelines, often yielded by-products such as tars, sludges, and oils. Production at the gas plant ended in the early 1950s, and ownership changed to the North Shore Gas Company, a predecessor of the current owner, National Grid. Hazardous chemicals released by the former manufactured gas plant contaminated soils and groundwater, as well as sediment in the adjacent Gloucester Harbor. Those contaminants resulted in injuries to natural resources in Gloucester Harbor.
“This settlement will provide funding for federal and state agencies to undertake critical habitat restoration work in the coastal areas in the vicinity of the former impacted by Gloucester Gas Light Company’s plant,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“Coastal wetlands provide vital habitat for many species of fish and wildlife as well as protect neighboring communities from storm surges and rising sea levels from climate change,” said Acting Regional Director Kyla Hastie of the Fish and Wildlife Service Northeast Region. “The settlement will allow the trustees to fund restoration projects in Coastal Massachusetts to make communities safer and improve wildlife habitat for impacted species.”
“This settlement is an important step toward addressing years of pollution in Gloucester Harbor that injured the community's natural resources,” said Director for Habitat Conservation for Fisheries Carrie Selberg Robinson of the National Oceanic and Atmospheric Administration (NOAA). “We look forward to working with the other trustees to restore habitat that will support Gloucester well into the future.”
“Gloucester Harbor provides vital maritime, recreational, and ecological services to the public. This settlement will ensure that the public is compensated for the natural resource injuries that resulted from the decades-long release of hazardous substances into the Harbor,” said Massachusetts Attorney General Andrea Joy Campbell. “We thank our state and federal partners for working with us to achieve this important outcome.”
“This settlement will meaningfully address decades of environmental harm and restore wetlands and other aquatic resources. The Commonwealth and its trustee partners will ensure that stakeholders and officials in Gloucester will be active participants in the process to utilize these funds for restorative environmental projects,” said Secretary Rebecca Tepper of the Massachusetts Executive Office of Energy and Environmental Affairs. “We appreciate the work of the Department of Justice and Attorney General Campbell in bringing about this resolution for the Gloucester Harbor.”
Under the Comprehensive Environmental Response, Compensation, and Liability Act, parties that have disposed of hazardous substances at a site are liable for damages, injury to, destruction of, or loss of natural resources. The natural resource trustees for the site are the U.S. Department of the Interior, through the U.S. Fish and Wildlife Service, the NOAA, and the Secretary of the Massachusetts Executive Office of Energy and Environmental Affairs. Massachusetts state law affords the Commonwealth a similar right to recover damages for injuries to natural resources. The trustees determined that the hazardous substances released from the former Gloucester Gas Light Company’s manufactured gas plant contaminated waters and sediments in Gloucester Harbor, resulting in injury to these natural resources that serve as habitats for fish and wildlife species. National Grid is remediating those contaminants under Massachusetts state law.
In settlement of the trustees’ natural resource damages claims, National Grid has agreed to pay $80,000 to reimburse federal and state trustees for damage assessment costs and $5.3 million to compensate the public for natural resource injuries to Gloucester Harbor, which the trustees, working with the public, will use to implement one or more natural resource restoration projects. The defendant previously paid about $475,000 to reimburse federal and state trustees for prior damage assessment costs incurred at the site.
The Justice Department is seeking public comments on the settlement for a period of 30 days from publication of a notice of the settlement, which will appear in the Federal Register. View a copy of the settlement here. For more information about the Former Gloucester Gas Light Company case, see www.darrp.noaa.gov/hazardous-waste/former-gloucester-gas-light-company.
Muskogee Resident Pleads Guilty to Possession of Child PornographyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Troy Richard Jenkins, age 32, of Muskogee, Oklahoma, entered a guilty plea to one count of possession of child pornography, punishable by up to 20 years in prison.
During the plea hearing held June 27, 2023, Jenkins admitted to knowingly possessing and accessing with the intent to view more than 600 visual depictions involving the sexual exploitation of minors. Some of the pornographic images depicted children under the age of 12. Jenkins also admitted to distributing child pornography to others.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the tab “Resources.”
The charges arose from an investigation by Homeland Security Investigations.
The Honorable Gerald L. Jackson, United States Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. At the conclusion of the plea hearing, Jenkins was remanded to the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Anthony C. Marek represented the United States.
Mexican National Sentenced to More than Seven Years for Conspiring to Distribute Drugs and Being in the Country IllegallyRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Servando Urias, 48, of Mexico, was sentenced on July 6, 2023, to 90 months’ imprisonment by Senior United States District Judge John M. Gerrard, after conviction by a jury in March 2023 of Conspiracy to Distribute Cocaine and Heroin. Urias had previously pleaded guilty to being in the country illegally. He was also ordered to serve a four-year term of supervised release as there is no parole in the federal system.
The evidence presented at trial revealed that on August 28, 2019, a codefendant driving a Dodge pickup was stopped by the Lancaster County Sheriff’s Office after committing traffic infractions while driving on Interstate 80 in Lancaster County, Nebraska. Simultaneously, a black Jeep occupied by two other codefendants and Urias was stopped by another Lancaster County Deputy as the Jeep was believed to be travelling with the Dodge pickup.
During the course of the traffic stops, deputies became suspicious that parties in both vehicles were involved in criminal activity. Deputies received permission to search both vehicles and discovered three kilos of cocaine and one kilo of heroin in the rear seat of the Dodge pickup. All were arrested after it was confirmed that the three individuals in the Jeep were in fact traveling with the Dodge pickup containing the drugs.
The three codefendants had previously pleaded guilty to the Conspiracy charge and testified at trial about their and Urias’s involvement in the transportation of the drugs. Two of the three have been sentenced, one to 9 months’ imprisonment, the other to 28 months’ imprisonment. Another codefendant is pending sentencing.
This case was the result of an investigation by the Lancaster County Sheriff’s Office and the Department of Homeland Security Investigations.
McAlester Resident Sentenced for Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dustin Dewayne Bristow, age 37, of McAlester, Oklahoma, was sentenced to 240 months in prison for sexual abuse of a minor.
On February 14, 2022, Bristow pleaded guilty in federal district court to one count of Sexual Abuse in Indian Country. At the plea hearing, Bristow admitted to sexually abusing a child under the age of 16 between 2007 and 2008. The crime occurred in Pittsburg Country, within the boundaries of the Choctaw Nation Reservation and the Eastern District of Oklahoma.
The Honorable Jodi W. Dishman, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by appointment, presided over the hearings in Muskogee. Bristow 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 Edith A. Singer represented the United States.
Man Sentenced to 46 Months for Using Stolen Identities of UCSD Students to Commit Bank Fraud and Pandemic-related Unemployment FraudRead the Press Release
Nehemiah Joel Weaver—who used the stolen identities of UCSD undergraduate students to commit bank and Covid-related frauds and then threatened someone he believed was working to expose his crimes—was sentenced in federal court to 46 months in prison and ordered to pay $225,392 in restitution to victims.
Weaver pleaded guilty in September 2022 to bank fraud, mail fraud, wire fraud and aggravated identity theft charges. He admitted to using the identities of at least 15 people, a group that included UCSD students, his former supervisor, and a former girlfriend. Weaver’s co-defendant, Mia Nikole Bell, admitted to stealing the student identities in her capacity as a UCSD employee and to providing them to Weaver. She was sentenced in December 2022 to four months in custody and was ordered to pay $16,480 in restitution.
Weaver further admitted in his plea agreement that he initially used some of the identities to open accounts and take out loans in the victims’ names at a credit union. Months later, he used the identities to obtain over $200,000 in Covid-related unemployment benefit payments from California and Arizona.
When Weaver learned of law enforcement’s investigation into his fraud, he sent threatening text messages to a perceived cooperating witness—including one in which he claimed to have “[p]aid good money” to have them killed.
Weaver also sent these text messages to the supposed cooperating witness: “NO MERCY!” “How long do you think you will be safe for? You are just a sitting duck[.]” “Lol so dead you don’t even know it yet[.]” “Can’t wait to see the look on your face. Paid good money to see it.”
In imposing the sentence, U.S. District Judge Gonzalo P. Curiel noted Weaver was on probation for felony identity theft convictions when he committed these new crimes. The judge noted the harm, anger, and fear that identity theft causes victims and observed that Weaver defrauded government agencies that exist to help people. Judge Curiel ordered the forfeiture of cash and the luxury vehicle that investigators seized from Weaver.
“Mr. Weaver used stolen identities to defraud critical state agencies that sought to help Americans during the early stages of the COVID-19 pandemic,” said United States Attorney Randy S. Grossman. “This office will continue to work with our federal, state, and local agency partners in the investigation of such crimes and the pursuit of justice for victims.”
Grossman thanked the prosecution team, the United States Secret Service and the San Diego Police Department for their excellent work on this case.
“Today’s sentencing is an example of our dedication and commitment to protecting the American financial system and targeting those who, by fraudulent means, seek to exploit and profit from government assistance programs,” said Special Agent in Charge Jason Reynolds, San Diego Field Office, U.S. Secret Service. “We, along with our law enforcement partners, are committed to pursuing justice and holding criminals accountable for their actions.”
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, Congress provided new unemployment benefits for those affected by the COVID-19 Pandemic who would not otherwise qualify for unemployment insurance. The EDD administers unemployment insurance benefits in California, and DES does the same in Arizona.
If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800. In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
DEFENDANTS Case Number 21-CR-2722-GPC
Nehemiah Joel Weaver Age: 37 San Diego, CA
Mia Nikole Bell Age: 32 Houston, TX
SUMMARY OF CHARGES
Bank Fraud – Title 18, U.S.C., Section 1344(1)
Maximum penalty: Thirty years in prison; $1 million fine or twice the pecuniary gain/loss
Mail Fraud – Title 18, U.S.C., Section 1341
Maximum penalty: Twenty years in prison; $250,000 fine or twice the pecuniary gain/loss
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison; $250,000 fine or twice the pecuniary gain/loss
Aggravated Identity Theft – Title 18, U.S.C., Section 1028A
Mandatory minimum two years in prison
AGENCIES
United States Secret Service
San Diego Police Department
Man on Parole After Murder Conviction Sentenced to Prison for Identity Theft and Making False Statements During the Purchase of a FirearmRead the Press Release
PORTLAND, Ore.—A felon who fled his parole on a murder conviction and moved to Oregon was sentenced to federal prison today for using stolen identities to apply for multiple Oregon driver’s licenses and making false statements while attempting to purchase multiple firearms.
Johnny Lee Allen, 45, was sentenced to 51 months in federal prison and three years’ supervised release.
According to court documents, in 1999, Allen was convicted of second-degree murder in Douglas County, Nebraska and sentenced to 35-50 years in prison. Shortly after he was released from Nebraska state custody in April 2019, he cut off his electronic monitoring bracelet and fled the state. Four months later, he used a stolen identity to obtain a Wyoming identification card. In late August 2019, he showed up at a DMV office in Gresham, Oregon and applied for and obtained an Oregon identification card using the same stolen identity. Two months later, in October 2019, Allen used the stolen identity a third time to apply for an Oregon driver’s license.
During the same time period, Allen used fraudulently-obtained identity documents for multiple firearm transactions. On November 1, 2019, he attempted to purchase a semi-automatic rifle, but cancelled the transaction when the background check was delayed. The next day, a woman Allen was dating purchased a .40 caliber pistol. Over the next nine months, Allen loaned the pistol to three different pawn shops in exchange for cash. In November 2020, Allen attempted to purchase a second firearm, but again cancelled the transaction rather than wait for a background check to be completed.
In July 2022, Allen used his brother’s identity to apply for a second Oregon driver’s license. His second attempt at an Oregon license failed when he used the same address he had used to obtain the first and his photo was flagged for potential fraud in the state’s DMV system.
On July 29, 2022, Allen was charged by criminal complaint with Social Security fraud and aggravated identity theft. On December 20, 2022, he was arrested in Oregon City, Oregon. During his arrest, law enforcement located and seized four different fraudulent pieces of identification on Allen’s person. All were obtained using the personal information of Allen’s first identity theft victim.
On March 22, 2023, Allen pleaded guilty to a two-count criminal information charging him with aggravated identity theft and making a false statement during the purchase of a firearm.
This case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Rachel Sowray, Special Assistant U.S. Attorney for the District of Oregon.
Loma Linda Woman Sentenced to over 5 Years in Prison for Commodities Scheme that Defrauded Victims Out of over $2.6 MillionRead the Press Release
LOS ANGELES – A San Bernardino County woman was sentenced today to 63 months in federal prison for her involvement in an investment fraud scheme that caused more than $2.6 million in losses to more than two dozen victims.
Sharief Deona McDowell, 58, of Loma Linda, was sentenced by United States District Judge André Birotte Jr., who also ordered her to pay $2,446,093 in restitution.
McDowell pleaded guilty in December 2022 to one count of wire fraud.
From October 2018 to March 2022, McDowell defrauded at least 28 investors by falsely representing that she would invest their money in commodity futures and options contracts. As part of the scheme, McDowell started a purported investment company called Presidential Investments Inc. LLC. McDowell operated and controlled this company and directed others to open bank accounts in the name of Presidential Investments.
In fact, McDowell did not trade with the investors’ money and instead misappropriated the funds for her personal use. McDowell also provided investors with fabricated trade confirmations and account statements to falsely indicate that their investments were generating returns.
For example, from October 2020 to January 2021, McDowell caused one victim to wire $250,000 from the victim’s bank account to a McDowell-controlled account after McDowell led the victim to believe she would invest the victim’s money through Presidential Investments.
In addition, McDowell used money provided by new investors to repay earlier investors – a tactic often used to conceal and prolong Ponzi and other investment fraud schemes.
In total, McDowell admitted in her plea agreement to causing losses to victims of approximately $2,678,768. The victims included people inside the United States as well as in Canada and Poland.
McDowell committed this fraud in violation of a prior judicial order as the result of a 2011 lawsuit filed against her and 20/20 Trading Company, a precious metals trading business that employed her as a saleswoman, by the Commodities Futures Trading Commission.
“From the very formation of her company, Presidential Investments, [McDowell] intended to use it to commit fraud, after having been prohibited by a court order from doing precisely that,” prosecutors argued in a sentencing memorandum. “Aware of the injunction, [McDowell] took steps to conceal her conduct by registering the business and opening bank accounts in the names of other people.”
The FBI investigated this matter.
Assistant United States Attorney Cory L. Burleson of the Riverside Branch Office and Trial Attorney Lauren Archer of the Justice Department Criminal Division’s Fraud Section prosecuted this case
Lincoln Man Sentenced for Two Bank RobberiesRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Michael McNeil, 30, of Lincoln, Nebraska, was sentenced on July 6, 2023, by Senior United States District Court Judge John M. Gerrard to a term of 84 months’ imprisonment following his conviction for two counts of bank robbery. After he completes his prison sentence, McNeil will also serve six years on supervised release. There is no parole in the federal system. He was ordered to pay $26,034 in restitution to the U.S. Bank in Lincoln, and $15,148.81 in restitution to Heartland Bank in Geneva, Nebraska.
On June 3, 2022, McNeil entered the Heartland Bank in Geneva, approached the teller window, and gave a teller a demand note. The note directed her not to move and to empty the cash drawer and no one would be hurt. McNeil left the bank with $17,088.81 in U.S. currency. He got into a Jeep Cherokee without plates which drove away. Later that afternoon, a motorist on Highway 6, about a ten-minute drive from Geneva, noticed what looked like money on the shoulder of the highway. He stopped and collected $1,940 cash from the roadside. The motorist turned the money over to law enforcement. Some of the money was wrapped in a distinctive paper band that matched bands wrapped around the bills stolen from Heartland Bank. Investigators obtained fingerprints from the demand note and the teller counter. An FBI forensic examiner found that four prints on the demand note matched McNeil’s fingerprints. The examiner also identified McNeil’s print on the corner of the teller counter. Further investigation revealed that McNeil had purchased a 1997 Jeep Grand Cherokee through Facebook Marketplace three days before the bank robbery. Heartland Bank is insured by the Federal Deposit Insurance Corporation (FDIC).
On July 6, 2022, McNeil entered the US Bank in Lincoln, Nebraska, and handed the bank teller a note reading “Empty your drawer! I don't want anyone to get hurt. Just give me the money!!!!” The teller handed over the money in the drawer and McNeil left with $26,034.00 in U.S. currency. Three days later, McNeil was stopped by Lincoln police driving a car he had purchased a day after the bank robbery. McNeil admitted to robbing US Bank and identified the getaway vehicle as a U-Haul van. Investigators executed a search warrant at McNeil’s Lincoln residence. Investigators found clothing in the trash that matched clothing worn by the robber. Investigators also located an unfinished demand note written in similar handwriting to that passed by the bank robber to the teller. US Bank is insured by the FDIC.
This case was investigated by the Lincoln Police Department, the Fillmore County Sheriff’s Office, the York Police Department, and the Federal Bureau of Investigation.
Lexington Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Melecio Meza Salamanca, 29, of Lexington, Nebraska, was sentenced on July 6, 2023, in federal court in Lincoln, Nebraska, for possession with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. Senior United States District Judge John M. Gerrard sentenced Salamanca to 144 months of imprisonment. There is no parole in the federal system. After his release from prison, Salamanca will begin a five-year term of supervised release.
On October 12, 2021, a Merrick County Nebraska deputy sheriff stopped Salamanca and the co-defendant Mark Barraza as they drove through Central City, Nebraska. Salamanca was driving and Barraza was in the passenger seat. The deputy searched the car and located a .45 caliber pistol and approximately 180 grams of actual methamphetamine. Salamanca was knowingly in possession of the pistol and intended to distribute the methamphetamine. On March 24, 2023, Barraza was sentenced to 133 months in prison for his role in the offenses.
This case was investigated by the Merrick County Sheriff’s Office, the Nebraska State Patrol, and the Federal Bureau of Investigation.
Las Vegas Resident Pleads Guilty to Conspiracy to Commit Access Device FraudRead the Press Release
PITTSBURGH, PA - A resident of Las Vegas, Nevada, pleaded guilty in federal court to a charge of conspiracy to commit access device fraud, United States Attorney Eric G. Olshan announced today.
Hector Ofelio Podio Gutierrez, age 30, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Podio Gutierrez used counterfeit credit cards encoded with stolen bank account information to purchase MasterCard gift cards at Sam’s Club stores in the Pittsburgh area, as well as in Florida and California. During the month of December 2017, Podio Gutierrez and his codefendant, Yoandy Pou Torres, using an encoding device, created counterfeit credit cards, and then used the cards to make fraudulent gift card purchases totaling more than $382,000 at various Sam’s Club locations, approximately $170,000 of which were purchases conducted at Pittsburgh area stores.
Judge Bissoon scheduled sentencing for November 1, 2023, at 1:30 p.m. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Podio Gutierrez remains on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the United States Secret Service conducted the investigation that led to the prosecution of Podio Gutierrez.
Las Vegas Resident Pleads Guilty to Conspiracy to Commit Access Device FraudRead the Press Release
PITTSBURGH, PA - A resident of Las Vegas, Nevada, pleaded guilty in federal court to a charge of conspiracy to commit access device fraud, United States Attorney Eric G. Olshan announced today.
Hector Ofelio Podio Gutierrez, age 30, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Podio Gutierrez used counterfeit credit cards encoded with stolen bank account information to purchase MasterCard gift cards at Sam’s Club stores in the Pittsburgh area, as well as in Florida and California. During the month of December 2017, Podio Gutierrez and his codefendant, Yoandy Pou Torres, using an encoding device, created counterfeit credit cards, and then used the cards to make fraudulent gift card purchases totaling more than $382,000 at various Sam’s Club locations, approximately $170,000 of which were purchases conducted at Pittsburgh area stores.
Judge Bissoon scheduled sentencing for November 1, 2023, at 1:30 p.m. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Podio Gutierrez remains on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the United States Secret Service conducted the investigation that led to the prosecution of Podio Gutierrez.
Lafourche Parish Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – On Thursday, July 6, 2023, TERRANCE STEWART, age 32, a residence of Lafourche Parish, was sentenced to 108 months in federal prison, four years of supervised release , as well as payment of a $100 mandatory special assessment fee for possession with intent to distribute 40 grams or more of a mixture or substance containing a detectable amount of fentanyl, announced U.S. Attorney Duane A. Evans.
According to court documents, on August 17, 2022, law enforcement seized 226.7 grams of fentanyl pills, 203 grams of methamphetamine pills, 72.9 grams of white powdery fentanyl, and approximately $181,623.00 in U.S. currency from STEWART’s residence. In addition, STEWART sold fentanyl pills to a confidential source on April 21, 2022 and June 2, 2022. STEWART also sold methamphetamine to a confidential source on June 22, 2022 and July 6, 2022.
This case was investigated by the Drug Enforcement Administration, New Orleans Division and the Lafourche Parish Sheriff’s Office Drug Task Force. The prosecution of this case is being handled by Assistant United States Attorney Rachal Cassagne of the Narcotics Unit.
La Cañada Flintridge Man Found Guilty of Murder-for-Hire Plots Against His Former Lawyer and a Litigant Who Defeated Him in CourtRead the Press Release
RIVERSIDE, California – A San Gabriel Valley man was found guilty by a jury today of federal criminal charges, including conspiring with his employee to hire a hitman to kill two men – one who opposed him in litigation and the other who represented one of his companies in bankruptcy.
Arthur Raffy Aslanian, 54, of La Cañada Flintridge, was found guilty of one count of conspiracy and use of interstate commerce facilities in the commission of murder-for-hire and one count of use of interstate commerce facilities in the commission of murder-for-hire. The federal jury also found Aslanian guilty of one count of conspiracy to commit arson, one count of attempted arson, and one count of arson of a building used in interstate commerce.
According to evidence presented at a five-day trial, Aslanian conspired with Sesar Rivera, 41, of North Hollywood, Aslanian’s employee, to hire a hitman to murder two people – identified in court documents as “M.Y.” and “S.E.”
M.Y. was a lawyer who represented Aslanian in a bankruptcy proceeding in which Aslanian had prevailed but then refused to pay over $261,000 in legal fees and expenses to M.Y.’s law firm. In April 2022, M.Y. sent a demand letter to Aslanian requesting to mediate the dispute and stating he was prepared to sue Aslanian if the mediation failed.
S.E. was a litigant who defeated Aslanian in court after Aslanian tried to take possession of the Brentwood home in which S.E.’s parents lived.
In April 2022, Rivera – Aslanian’s employee at the time – met with an individual, who according to trial testimony was a gang member and convicted felon. Rivera told the individual that a real estate businessman named “Arthur” wanted to pay him to kill M.Y. and S.E.
In July 2022, Rivera again met with the individual and said “Arthur” wanted the killing done as soon as possible. Rivera showed the individual information about M.Y. The individual secretly recorded a portion of this July 2022 in-person meeting on his phone and provided a copy of the recording to law enforcement.
Rivera also promised the individual that Aslanian would pay $20,000 for the murder once Rivera had photographic proof the murder had been committed.
On August 10, 2022, Rivera again met with the individual and told him to focus on murdering S.E. before killing M.Y. On August 19, 2022, Rivera used the Facebook Messenger application to send the individual a multimedia message with a screenshot of victim S.E.’s Facebook profile, including S.E.’s picture and business name, to assist the individual in locating and murdering S.E.
Law enforcement contacted and warned M.Y. and S.E. of the murder plots.
On September 7, 2022, law enforcement detained and questioned Rivera, who later agreed to cooperate with them.
Aslanian was arrested shortly after a September 15, 2022 meeting in which Rivera showed him a staged murder photograph of S.E.
In a separate incident, Aslanian, through Rivera, paid an individual a few hundred dollars for successfully setting fire to a vacant unit at a rental property in North Hollywood own by Aslanian so the remaining tenants would be forced to leave the property.
United States District Judge Jesus G. Bernal scheduled an October 2 sentencing hearing, at which time Aslanian will face a statutory maximum sentence of 10 years in federal prison for each murder-for-hire-related count and up to 20 years in federal prison for each arson-related count, and a mandatory minimum of five years in federal prison for each arson count.
Rivera pleaded guilty on March 27 to one count of conspiracy and one count of use of interstate commerce facilities in the commission of murder-for-hire. He faces up to 10 years in federal prison for each count at his September 25 sentencing hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Los Angeles Police Department investigated this matter.
Assistant United States Attorneys Kevin J. Butler of the Violent and Organized Crime Section, Kevin B. Reidy of the Major Frauds Section, and Eli A. Alcaraz of the Riverside Branch Office are prosecuting this case.
Johnston Man Arrested, Federal Firearm Charges Filed in Seizure of Firearm Silencers and Device to Convert an AR-15 to an Automatic WeaponRead the Press Release
PROVIDENCE – Federal charges have been filed against a Johnston man following the seizure of two firearm silencers, one of which was attached to a rifle, and a “lightning link” auto sear (a device used to turn a semi-automatic rifle into an automatic weapon), announced United States Attorney Zachary A. Cunha.
Alessio Dandrea, 27, has been charged by way of a federal criminal complaint with possession of an unregistered firearm silencer and unlicensed importation/transportation of a machine gun from foreign commerce.
According to charging documents, on June 14, 2023, U.S. Customs and Border Protection intercepted a parcel shipped from China addressed to Dandrea that, upon inspection, was found to contain an AR-15 “lightning link” auto sear. The seized lightning is classified as a machine gun by the ATF and is designed to modify the semi-automatic function/capability of an AR-15, rendering it capable of firing as an automatic weapon. The possession or transfer of an unregistered drop-in auto sear is prohibited by the National Firearms Act.
A court-authorized search of Dandrea’s residence on Thursday by agents and officers from Homeland Security Investigations, ATF, and the Johnston Police Department resulted in the seizure of six firearms and two firearm silencers, one of which was attached to a rifle. An investigation into Dandrea revealed that the two silencers were not registered to him, rendering their possession illegal under federal law.
Dandrea is scheduled to make an initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan today at 2:00 pm.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The matter was investigated by Homeland Security Investigations, U.S Postal Inspection Service, Bureau of Alcohol Tobacco Firearms and Explosives, with assistance from the Johnston, Warwick, Providence, Central Falls, and Pawtucket Police Departments.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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dandrea_criminal_complaint.pdfInmate Pleads Guilty to Possessing Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. – Chase Higgins, 26, an inmate at the Federal Correctional Institution (FCI) Beckley, pleaded guilty today to possession of a weapon by an inmate at a federal prison.
According to court documents and statements made in court, on February 21, 2023, Higgins told an FCI Beckley staff member during a search of his person that he had a handcrafted weapon commonly known as a “shank” in his pants. The staff member found the shank in a leg of Higgins’ pants. The shank was a piece of plastic about six inches long, with one end sharpened to a point. Higgins admitted to possessing the shank, and further admitted that it was designed and intended to be used as a weapon.
Higgins is scheduled to be sentenced on October 27, 2023, and faces a maximum penalty of five 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 Federal Bureau of Prisons.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess 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. 5:23-cr-71.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Great Falls before Chief U.S. District Judge Brian M. Morris and pleading not guilty on July 6 was:
Larry Thomas McDaniel, 45, of Great Falls, on charges of possession with intent to distribute controlled substances and distribution of methamphetamine. If convicted of the most serious crime, McDaniel faces a mandatory minimum of five years to 40 years in prison, a $10 million fine and five years of supervised release. McDaniel was detained pending further proceedings. The FBI, Great Falls Police Department, Drug Enforcement Administration and Montana Division of Criminal Investigation investigated the case. PACER case reference. 23-61.
Kareshmaa Kaur Jagroop, 41, of Calgary, Alberta, on charges of conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine. If convicted of the most serious crime, Jagroop faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Jagroop was detained pending further proceedings. Homeland Security Investigations conducted the investigation. PACER case reference. 22-109.
Jada Mulon Wells, 20, of Browning, on charges of assault resulting in serious bodily injury, assault with a dangerous weapon, assault on a federal officer and robbery. If convicted of the most serious crime, Wells faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Wells was detained pending further proceedings.The FBI, Blackfeet Law Enforcement Service, Bureau of Indian Affairs and Cut Bank Police Department investigated the case. PACER case reference. 23-34.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on July 6 was:
Heather Marie Bugni, 34, of Butte, on charges of false statement to an agency of the United States, health care fraud and theft of government money. If convicted of the most serious crime, Bugni faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Bugni was released pending further proceedings. The U.S. Department of Health and Human Services Office of Inspector General investigated the case. PACER case reference. 23-09.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 6 was:
Yvon Lopez-Florez, 29, of Lodge Grass, on charges of conspiracy to possess with intent to distribute and distribution of controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Lopez-Florez faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Lopez-Florez was detained pending further proceedings. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI investigated the case. PACER case reference. 23-70.
Appearing on July 5 was:
Ryan William Newhart, 28, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Newhart faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Newhart was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force, U.S. Postal Service and Montana Division of Criminal Investigation investigated the case. PACER case reference. 23-80.
Devin Miranda American Horse, 34, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, American Horse faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. American Horse was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-73.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Houston Man Sentenced to 40 Years for Child Sexual Exploitation, ObstructionRead the Press Release
A convicted child sex offender was sentenced today to 40 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jonathan Fitzpatrick Koen, 49, was indicted in December 2022 and went to trial in March 2023. A jury found him guilty of four counts of sexual exploitation of a child and one count of attempted obstruction of an official proceeding. He was sentenced Friday by U.S. District Judge Reed C. O’Connor, who ordered the defendant be subject to a lifetime of supervision following his incarceration.
“Children should never be subjected to such appalling abuse. HSI will do everything in our power to continue to remove these predators from our communities,” said HSI Dallas Special Agent in Charge Lester R. Hayes Jr. “This defendant’s lengthy sentence and lifetime of supervised release reflects the severity of his criminal offenses. HSI along with our law enforcement partners remain vigilant in the protection of our nation’s most vulnerable. ”
According to evidence presented at trial, Mr. Koen recorded himself sexually assaulting a high-school-aged victim.
Once the sexually explicit images and videos were discovered, Mr. Koen picked up the minor victim from her home and drove here through the United States and across the Canadian border before he was apprehended by the Royal Canadian Mounted Police.
Mr. Koen also attempted to change his victim’s trial testimony in order to obtain an acquittal. He attempted to get the victim to testify that it was someone else who produced the videos and images he was charged with recording.
Ultimately, the victim was consistent in her testimony, which was consistent with the evidence showing that Mr. Koen sexually assaulted the victim and recorded the videos and images found on his cellphone.
Homeland Security Investigations’ Dallas Field Office and the Fort Worth Police Department conducted the investigation with the assistance of the Harris County Sheriff’s Office and the Royal Canadian Mounted Police. Assistant U.S. Attorney Brandie Wade and Levi Thomas prosecuted the case.
Highlands County Man Sentenced to 13 Years in Federal Prison for Armed Drug TraffickingRead the Press Release
MIAMI – Oscar Robinson, 67, of Sebring, Florida, has been sentenced to 13 years in prison for armed drug trafficking. Following his guilty plea to possession with intent to distribute a mixture and substance containing a detectable amount of cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
On July 21, 2021, Robinson distributed crack cocaine from his residence in Sebring, Florida. On January 21, 2022, Robinson again distributed crack cocaine from his residence. On February 1, 2022, law enforcement officers executed a search warrant at Robinson’s residence, during which they seized a loaded Smith & Wesson, .357 caliber revolver, several grams of crack cocaine, a detailed drug ledger, and $10,900.00.
Robinson has prior felony convictions from the State of Florida for, among other things, assault with intent to commit robbery, aggravated assault with a firearm, possession of cocaine, possession of cocaine with intent to sell, sale of cocaine, and sale of cocaine.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, announced the sentence imposed by U.S. District Judge K. Michael Moore.
DEA Miami investigated the case, with assistance from the Highlands County Sheriff’s Office. Assistant U.S. Attorney Michael D. Porter prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14064.
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Health Connect America Fined over $4.6 Million for Improper Billing PracticesRead the Press Release
ABINGDON, Va. – Health Connect America, (HCA) headquartered in Franklin, Tennessee with locations in Big Stone Gap and Culpeper, Virginia, has agreed to pay $4,611,375 to resolve allegations that it billed Virginia Medicaid for services not provided. As part of the resolution, HCA further agreed to be subject to a period of 5 years of increased compliance and oversight, during which any failure to comply with its obligations may result in criminal prosecution and contempt of court proceedings that could result in additional monetary sanctions and injunctive relief.
The allegations involved HCA billing Medicaid improperly for three separate behavioral health services available to children who qualify. Therapeutic Day Treatment is a school-based program designed to assist children with various mental health diagnoses who need support during the school day. HCA billed Virginia Medicaid for providing services to students who were absent from school, and when school was not open due to holiday or weather closures.
Intensive In-Home Services is a home-based program designed to help children who have various mental health diagnoses and are at risk of being removed from their home. HCA billed Virginia Medicaid for intensive in-home services provided by an employee who was having a sexual relationship with a juvenile patient in Orange County, Virginia. That employee has since been prosecuted by state authorities and is serving a 10-year sentence.
Behavioral Therapy Services is a specialized mental health service for children with various mental health diagnoses, including autism, and includes Applied Behavioral Analysis. Behavioral Therapy Services and Applied Behavioral Analysis must be provided by specifically-trained mental health professionals. HCA billed for Behavioral Health Services that were provided by individuals who were not properly trained or credentialed in Southwest Virginia, and used the name and National Provider Identifier (NPI) number of a properly-trained and credentialed mental health professional located in Northern Virginia who had never seen clients in Southwest Virginia.
“Ensuring that healthcare providers accurately bill programs such as Medicaid and Medicare are one of the cornerstone functions of law enforcement,” United States Attorney Christopher R. Kavanaugh said today. “When providers fail in that mission, we must hold them accountable. I am grateful to all those who worked on this matter and brought it to a just conclusion.”
“Health Connect America tried to charge Virginia Medicaid for child behavioral health services they never performed. I'm proud of the collaboration between my office and our federal partners in reaching an agreement and bringing justice,” said Virginia Attorney General Jason Miyares.
“Health care providers have a responsibility to submit accurate and honest claims to federal health care programs to ensure that these resources are available for eligible patients,” said Maureen Dixon, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is committed to safeguarding valuable taxpayer dollars and protecting the integrity of the Medicaid program.”
The agreement resolves HCA’s potential criminal liability based on the investigation. As part of the resolution, HCA has committed to various compliance measures, including, but not limited to, increased compliance and audit requirements, unannounced audits, and enhanced reporting requirements if and when there are incidents of theft, fraud, abuse, or neglect
The resolutions obtained in this matter were the result of a coordinated effort among the United States Attorney’s Office for the Western District of Virginia, the Virginia Attorney General’s Office Medicaid Fraud Control Unit, and the United States Department of Health and Human Services-Office of the Inspector General.
Special Assistant United States Attorney Janine M. Myatt, Assistant Attorney General with the Virginia Attorney General’s Office, and Assistant U.S. Attorney Randy Ramseyer represented the government in this matter.
Hagerstown Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell, III today sentenced John Frederick Hegedus, age 34, of Hagerstown, Maryland, to 30 years in federal prison, followed by lifetime supervised release, for sexual exploitation of a child. Judge Russell also ordered that, upon his release from prison, Hegedus must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, Hegedus sexually abused a six-year old girl on seven separate instances between April 26, 2022 and June 9, 2022. Hegedus admitted that he used his cellular phone to record his abuse of the minor victim and subsequently posted the videos to a child pornography group chat. The videos were reported to law enforcement and on June 9, 2022, law enforcement executed a search warrant at Hegedus’ apartment and Hegedus was arrested. During the execution of the warrant, agents noted that the background shown in the videos matched the defendant’s apartment.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Grand Island Man Sentenced to 60 Years for Conspiracy to Produce Child Pornography and Production of Child PornographyRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Scott Matthew Simmons, 43, of Grand Island, Nebraska, was sentenced on July 6, 2023, in Lincoln, Nebraska, by Senior United States District Judge John M. Gerrard for one count of conspiracy to produce child pornography and one count of production of child pornography. Simmons was sentenced to 720 months in prison and will serve the remainder of his life on supervised release. There is no parole in the federal system. Simmons was additionally ordered to pay $11,250 in restitution as well as a $9,000 special assessment which will contribute to funds established for victims of these types of crimes.
This case initiated in July of 2022 with an investigation by the FBI in an attempt to identify children in a series of child pornography images which were being shared online since 2018. Through the investigation it was determined that the files were associated with Scott Simmons and Scott Meyer. Meyer is currently scheduled to be sentenced on October 2, 2023, regarding the same case.
On August 25, 2022, a search warrant was received to search Simmons’s and Meyer’s residence. During the search warrant, it was determined that the residence was where many of the child exploitation files were produced. Numerous electronic devices were seized from the residence. Meyer was at the residence during the execution of the search warrant. He agreed to be interviewed and admitted that he and Simmons had engaged in photographing and recording prepubescent boys in a sexually explicit manner. He admitted that these images and videos were produced at their residence and other locations to include various hotels. Four child victims were identified and interviewed by child advocate interviewers.
A forensic examination and review were completed of Simmons’s and Meyer’s personal cellphones. Both the phones contained more than 400 files of child pornography. A large majority of these files found on the phones were original productions of the minor victims in this case.
Simmons was previously convicted in 2007 for one count of sexual assault of a child in the 3rd degree in Saline County District Court, Nebraska. Simmons and Meyer met while both were serving sentences for child-sex offenses in Nebraska. Simmons and Meyer distributed the images and videos they produced of the four victims in this case on the Tor network using encrypted forms of email to further hide their identities. They additionally directly shared the files they created with at least one acquaintance they made while serving their prior sentences.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation.
Former President of Beauty Career Training School Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Janola Massaquoi, 41, of Shreveport, Louisiana was sentenced late yesterday by United States District Judge S. Maurice Hicks, Jr. for making false statements to a federal agency in connection with the application for a CARES Act loan. Massaquoi was sentenced to 12 months and 1 day in prison and ordered to pay restitution in the amount of $250,000. She will serve 3 years of supervised release following her release from prison.
In March 2020 Congress enacted the Coronavirus Aid, Relief and Economic Security (CARES) Act which was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. As part of the CARES Act, the Small Business Administration (SBA) provided Economic Injury Disaster Loans (EIDL), which were low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. The CARES Act also provided authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (“PPP”).
In 2018, Massaquoi formed the Jane Elizabeth Education Group (JEEG) and also served as the president of a beauty career training company. In 2020, she applied to the SBA for an EIDL in the name of JEEG d/b/a Company 1 seeking approximately $500,000 in EIDL Program funds. At the same time, she applied for a PPP loan in the name of JEEG d/b/a Company 1 seeking $178,750. As part of the EIDL application process, in April 2020, Massaquoi electronically submitted to the SBA a Loan Authorization and Agreement in which she certified to the SBA that “[JEEG] will not, without the prior written consent of SBA, make any distribution of Borrower’s assets, or give any preferential treatment, make any advance, directly or indirectly, by way of loan, gift, bonus, or otherwise to any owner or partner…” She also certified that the loan funds would be used solely as working capital for JEEG.
Both loan applications were subsequently approved. Based on her material misrepresentations set forth in the false Loan Authorization and Agreement, the SBA disbursed approximately $500,000 in EIDL benefits to a bank account held by Company 1. On April 23, 2020, approximately $178,750 in PPP loan benefits were disbursed to a bank account held by Company 1.
In reality and unbeknownst to the SBA, Massaquoi intended to make a large advance directly to herself and did not intend to use the EIDL funds solely as working capital for JEEG. After obtaining the loan benefits, Massaquoi transferred funds from Company 1’s bank account to other bank accounts she personally controlled and used the funds for a variety of personal expenses including a down payment on the purchase of a personal residence and mortgage payments. Massaquoi also withdrew over $30,000 in cash, transferred over $50,000 to friends and family members, and used approximately $83,000 to fund her personal investment and retirement accounts. In total, Massaquoi used $250,000 of the EIDL proceeds for her personal use.
“Because of the selfish actions of this defendant and her choice to defraud the government out of over $250,000 for her own personal gain, she now rightfully stands as a convicted felon and will spend time behind bars,” said U.S. Attorney Brandon B. Brown. “These types of cases are part of why we have been called to do what we do at the United States Attorney’s Office. It is our sole responsibility to investigate and prosecute these types of cases. The CARES Act was designed to help those with businesses that were suffering due to the COVID-19 pandemic, not to line their own personal pockets to the detriment of the American taxpayer. We will bring those who steal federal taxpayer dollars to justice as these types of cases remain a priority for our office and the department. Our office will continue to aggressively prosecute these offenders in Shreveport, Monroe, Alexandria, Lafayette, Lake Charles and all points in between.”
“Massaquoi represents a growing number of people who fraudulently received funds under the CARES Act and utilized them for personal gain,” said Demetrius Hardeman, Acting Special Agent in Charge, Atlanta Field Office. “However, IRS Criminal Investigation and our federal law enforcement partners uncovered her deceitfulness and her sentencing is evidence that greed does not pay."
The case was investigated by the Department of Treasury, Inspector General for Tax Administration, and Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Seth D. Reeg.
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 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.
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Former Morris School Teacher Sentenced for Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dallas Tyler Ewton, age 41, of Morris, Oklahoma, was sentenced to a term of imprisonment of 180 months each for two counts of Sexual Abuse of a Minor in Indian Country, to be served concurrently, and 6 months for one count of Abusive Sexual Contact in Indian Country, to be served consecutively.
The charges arose from investigations by the Federal Bureau of Investigation and the Muscogee (Creek) Nation Lighthorse Police.
On July 7, 2022, Ewton pleaded guilty to two counts of Sexual Abuse of a Minor in Indian Country and one count of Abusive Sexual Contact in Indian Country. Ewton, then employed as a full-time teacher at Morris Public Schools, engaged in sexual acts with two of his students. At the plea hearing, Ewton admitted to sexually abusing a student between April 2012 and June 2016. He also admitted to sexually abusing another student between September 2019 and January 2020. The crimes occurred in within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
“This case represents a nightmare scenario for any parent,” said United States Attorney Christopher J. Wilson. “The defendant took advantage of the time-honored relationship of teacher and student to prey on his victims.”
The Honorable Timothy D. DeGiusti, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Ewton will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve the non-paroleable sentence of incarceration.
Assistant United States Attorney Edith A. Singer represented the United States at the sentencing hearing.
Former Kirkland, Washington resident sentenced to 13 years in prison for possessing images of child rape and abuse, and for plan to sexually assault a childRead the Press Release
Seattle – A 35-year-old former resident of Kirkland, Washington was sentenced today in U.S. District Court in Seattle to 13 years in prison for attempted enticement of a minor and possession of child pornography, announced Acting U.S. Attorney Tessa M. Gorman. Marcus William Lowe has been in federal custody since November 2020. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez said, “The impact is lifelong to those victims who are revictimized every time those images are downloaded and viewed. Every single one of those photos reflects a real child, a real victim.”
“Those who prey on children face significant federal prison time,” said Acting U.S. Attorney Gorman. “These crimes leave life-long scars on the young and vulnerable. It is entirely appropriate that we use custody time, post sentence supervision and registration as a sex offender to keep our community safe.”
According to records filed in the case, in early October 2020, Lowe used an internet application to communicate with a parent about molesting a ten-year-old child. In fact, the child was fictitious, and the “parent” was an undercover FBI agent. When Lowe arrived at the location and spotted law enforcement he attempted to flee and injured a law enforcement officer in the process.
A review of Lowe’s electronic devices revealed he possessed several hundred images of child rape and sexual abuse. A minor child revealed that Lowe had sexually abused the child. He was sentenced in King County Superior Court to 41 months in prison for that conduct.
“It is heartbreaking that child predators cause lasting damage on innocent children without caring that they are destroying lives,” said Richard A. Collodi, Special Agent in Charge of FBI Seattle. “We hope that these prosecutions send a message to other would-be sex offenders that law enforcement takes these crimes seriously, and there will be consequences.”
Judge Martinez ordered that the 13-year federal sentence run concurrent to the state sentence. Lowe will be required to register as a sex offender following prison and will be on supervised release for 15 years following the prison term.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the FBI. The operation was conducted in cooperation with the Seattle Police Department, and the Kirkland Police Department.
The case was prosecuted by Assistant United States Attorney Matt Hampton.
Former Eastern Kentucky Correctional Supervisor Indicted for Covering up the Assault of a Restrained InmateRead the Press Release
A former Eastern Kentucky Correctional Complex (EKCC) sergeant was indicted by a federal jury in Lexington, Kentucky, for three counts of obstruction based on his efforts to cover up the assault of a restrained inmate by multiple officers that he supervised.
The indictment alleges that on July 24, 2018, Sgt. Eric L. Nantell, 47, watched lower-ranking EKCC correctional officers assault a nonviolent inmate who was lying face-down, wearing handcuffs and leg shackles, and isolated in a prison shower cell. The indictment specifically alleges that Nantell, who at that time held the rank of sergeant, stood outside of the shower during the assault and that he later attempted to cover up what happened by lying to the EKCC supervisor assigned to investigate the incident, a Kentucky State Police (KSP) detective, and a special agent of the FBI.
Nantell faces a maximum of 20 years in prison for each charge alleging that he lied to Kentucky state officials. Nantell faces a maximum of five years in prison for lying to the FBI. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office; and Colonel Phillip Burnett Jr. Commissioner of the KSP made the announcement.
The FBI, the KSP and the Kentucky Justice and Public Safety Cabinet conducted the investigation.
Assistant U.S. Attorney Zach Dembo and Mary Melton for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.