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25 July 2023
Colombian National Sentenced to 27 Years in Federal Prison for His Leadership Role in Operating a Fentanyl Enterprise from a Canadian PrisonRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, along with United States Attorney Natalie K. Wight, District of Oregon, and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, announced that Daniel Vivas Ceron, age 42, Columbia, was sentenced by Chief District Court Judge Peter Welte, to 27 years imprisonment, 5 years supervised release, and $11,048.43 in restitution for his role in ‘Operation Denial’.
Ceron was extradited from Panama to the United States on January 25, 2017, with significant assistance from the Justice Department’s Office of International Affairs.
On July 12, 2019, Ceron pled guilty to Continuing Criminal Enterprise, Conspiracy to Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death, and Money Laundering Conspiracy.
As part of that plea, Ceron acknowledged that he and Jason Berry led an international fentanyl and fentanyl analogue distribution operation from inside Drummond Correctional Institution in Drummondville, Quebec. Using a cell phone from inside the prison, Ceron and Berry arranged shipments of fentanyl and fentanyl analogues from China to Canada and the United States as part of this criminal enterprise. The distribution of these substances led to fatal and non-fatal overdoses in North Dakota, Oregon, New Jersey, and North Carolina.
This case is part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and fentanyl analogues and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington, DC, as part of “Operation Deadly Merchant.” The investigation started in North Dakota on January 3, 2015, with the overdose death in Grand Forks, ND, of Bailey Henke.
"The sentences announced today, and the suite of related prosecutions that preceded them, reflect the impressive cooperation and dedication of state, local, and federal law enforcement, along with our Canadian partners, to take down a pernicious and deadly network of fentanyl distributors,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Justice Department will continue to hold accountable those like Ceron, Berry, Nguyen, and members of their network who injected fentanyl and fentanyl analogues into American society with deadly results. Concerted efforts like Operation Denial demonstrate the Justice Department’s commitment to eliminating the influx of fentanyl into our communities at their points of origin."
“These defendants are responsible for fentanyl poisoning deaths in North Dakota and several other states, and today’s strong sentence ensures accountability for those crimes,” Schneider said. “This result is a credit to the tireless work and seamless cooperation exhibited by our office’s prosecution team and their law enforcement partners in North Dakota, across the country, and in Canada.”
“Disrupting large drug trafficking networks, like the Ceron Network, is vitally important to our ongoing effort to combat the fentanyl crisis in America and save innocent lives. Networks like these span jurisdictions and stopping them requires robust coordination among many domestic and international partners,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Illicit fentanyl is one of the greatest dangers we’re facing as a country,” said Jamie Holt, Homeland Security Investigations (HSI) St. Paul Special Agent in Charge. “The conviction and sentencing of Ceron highlights the strength of our international and state partnerships and the dedicated professionals who spend countless hours combatting a poison that is harmful to many communities and families. HSI St. Paul is steadfast in its efforts to disrupt and dismantle transnational criminal organizations and combat the flow of illicit opioids into the United States.”
“This international investigation is an excellent example of the results that can be achieved when multiple law enforcement partners combine their efforts and expertise, and it has had a significant impact for our communities. Thanks to the collaboration of the various stakeholders, we have successfully neutralized a criminal network involved in major trafficking of a highly dangerous substance between Canada and the United States.” – Superintendent Karine Gagné, Acting Criminal Operations Officer, RCMP in Quebec
Operation Denial has led to thirty-one (31) defendants charged in North Dakota and three (3) defendants charged in Oregon. The investigation has resulted in nearly one million in cash and property forfeited from members of the organization. Defendants sentenced or convicted in this case include:
District of North Dakota:
- Jameson Robert Sele, 20, Grand Forks, ND – Pled guilty to Conspiracy to Distribute Controlled Substances and was sentenced on July 27, 2015, to 36 months’ in federal prison.
- Ryan Jon Jensen, 20, Grand Forks, ND – Pled guilty on July 27, 2015, to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; two Counts of Distribution of a Controlled Substance Resulting in Death; Distribution of a Controlled Substance Resulting in Serious Bodily Injury; and Money Laundering Conspiracy; and was sentenced on February 2, 2016, to 20 years in federal prison.
- David Todd Noye Jr., 18, Grand Forks, ND – Pled guilty on May 4, 2015, to Conspiracy to Distribute Controlled Substances and was sentenced on January 25, 2016, to serve 3 years and 3 months in federal prison.
- Joshua Tyler Fulp, 20, Grand Forks, ND – Pled guilty on June 23, 2015, to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death and was sentenced on January 26, 2016, to 12 years in federal prison.
- Kain Daniel Schwandt, 19, Grand Forks, ND - Pled guilty on July 24, 2015, to Conspiracy to Distribute Controlled Substances and was sentenced on annuary 25, 2016, to serve 3 years and 6 months in federal prison.
- Brandon Corde Hubbard, 40, Portland, OR – Pled guilty on March 7, 2016, to charges of Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Distribution of a Controlled Substance Resulting in Death; and Money Laundering Conspiracy. He was sentenced on September 14, 2021 to 264 months in federal prison.
- Braden James Foley, 28, Olympia, WA - Pled guilty on August 11, 2016, to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced on November 21, 2016, to serve 30 months in federal prison.
- Amanda Schneider, Port St. Lucie, FL – Pled guilty on September 17, 2018, to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced on January 17, 2019, to serve 15 months in federal prison.
- Danny Gamboa, 21, Pawtucket, RI - Pled guilty on September 19, 2018, to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced on February 27, 2019, to 25 months in federal prison.
- Keveen Nobre, 29, Providence, RI - Pled guilty on October 10, 2018, to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced on April 17, 2019, to serve 30 months in federal prison.
- Robinson Gomez, 35, Charlotte, NC - Pled guilty on November 8, 2018, to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced on April 17, 2019, to serve 15 years in federal prison.
- David Campbell, 58, Plantation, FL - Pled guilty on January 10, 2019, to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced on April 17, 2019, to serve 10 years in federal prison.
- Elizabeth Ton, 27, Woonsocket, RI - Pled guilty on June 18, 2018, to Money Laundering Conspiracy and was sentenced on March 8, 2019, to 41 months in federal prison.
- Louis Bell, 31, Port St. Lucie, FL – Pled guilty on November 8, 2018, to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced on April 18, 2019, to serve 17 years in federal prison.
- Anthony Gomes, 34, Woonsocket, RI - Pled guilty on May 4, 2018, to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance resulting in Serious Bodily injury and Death and Money Laundering conspiracy. On July 30, 2021, Gomes was sentenced to serve 30 years in federal prison.
- Jose Pinto, 64, Pawtucket, RI – Pled guilty to Tampering with Evidence and was sentence on January 20, 2022, to time served and two years supervised release.
- Eugenia Pinto, 64, Pawtucket, RI – On November 18, 2021, the parties entered into a pre-trial diversion agreement for a term of 18 months after admission to Obstruction of Justice and Evidence Tampering.
- Steven Pinto, 40, Pawtucket, RI, was found guilty of Continuing Criminal Enterprise, Conspiracy to Distribute and Import Controlled Substances, and Obstruction of Justice in June 2021 after a five-week trial. Pinto was sentenced on October 14, 2021, to 33 years imprisonment.
- Xuan Cahn Nguyen, age 43, Montreal, Quebec, pled guilty on March 14, 2023, to Conspiracy to Distribute and Import Controlled Substances Resulting in Serious Bodily Injury and Death and Money Laundering Conspiracy. Nguyen was sentenced on July 17, 2023, to 22 years imprisonment.
- Jason Joey Berry, age 40, Cornwall, Ontario - pled guilty on July 29, 2022, to Conspiracy to Distribute and Import Controlled Substances Resulting in Serious Bodily Injury and Death. Berry was sentenced on July 24, 2023 to 24 years imprisonment.
- Vannek Um, age 45, Montreal Quebec – pled guilty on March 14, 2023, to Money Laundering Conspiracy. Vannek Um is scheduled to be sentenced on August 8, 2023.
- Marie Um, age 42, Montreal Quebec, was found guilty of Conspiracy to Distribute and Import Controlled Substances Resulting in Serious Bodily Injury and Death and Money Laundering Conspiracy in April 2023, after a 2 ½ week trial. Marie Um is scheduled to be sentenced on September 5, 2023.
District of Oregon:
- Channing Lacey, 30, Portland, Oregon - Pled guilty on March 28, 2017, to one Count of Distribution of a Controlled Substance Resulting in Serious Bodily Injury to three individuals and one Count of Distribution of a Controlled Substance Resulting in Death and was sentenced on August 28, 2017, to 135 months imprisonment.
- Carissa Marie Laprall, 25, Portland, Oregon - Pled guilty on March 28, 2017, to three Counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and and was sentenced to time served with five years of supervised release on January 30, 2020.
- Steven Fairbanks Locke, 41, Portland, Oregon - Pled guilty on June 14, 2017, to Use of a Communication Facility to Facilitate a Drug Offense and was sentenced on September 4, 2017, to time served and a term of supervised release.
On August 31, 2021, the U.S. Department of State offered a reward of up to $5 million for information leading to the arrest and/or conviction of People’s Republic of China (PRC) national Jian Zhang, a fugitive in this transnational investigation. Additional fugitives from China include:
1) Na Chu, 37, Pulandian City, Liaoning Province, China
2) Yeyou Chu, 36, Pulandian City, Liaoning Province, China
3) Cuiying Liu, 62, Dezhou City, Shangdong Province, China
4) Keping Zhang, 62, Dezhou City, Shangdong Province, China
This case was investigated by Homeland Security Investigations; North Dakota Bureau of Criminal Investigation; U.S. Drug Enforcement Administration; U.S. Postal Inspection Service; IRS Criminal Investigation – Fargo Field Office; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force; Oregon State Police; and the Grand Forks Police Department.
The prosecutors for this case were Assistant U.S. Attorney Christopher C. Myers, District of North Dakota; Assistant U.S. Attorney Scott Kerin, District of Oregon and as a Special Assistant U.S Attorney in North Dakota; and Kaitlin Sahni, Assistant Deputy Chief, and Imani Hutty, Trial Attorney, Criminal Division Narcotic and Dangerous Drug Section of the Justice Department.
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Ages reflected are ages at the time of sentencing.
Clearwater Felon Sentenced to More Than 15 Years in Prison for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Deion R. Brown (27, Clearwater) to 15 years and 8 months in federal prison for being a felon in possession of a firearm. The court also ordered Brown to forfeit the firearm used in the offense. Brown had pleaded guilty on August 30, 2022.
According to court documents, on July 18, 2021, officers from the Clearwater Police Department (CPD) responded to reports of gunfire at the intersection of South Prospect Avenue and Turner Street in Clearwater. Multiple eyewitnesses had reported seeing a young man arguing with two other men before opening fire into the air. The shooter was seen standing near a black SUV, which was being driven by a young woman. After firing five rounds, the shooter chased the other two men on foot, then the shooter and the female driver then left the scene in the black SUV.
The next day, a CPD officer located the black SUV in Clearwater and observed the vehicle pull into an apartment complex located about one block from the scene of the shooting. A man and a woman got out of the vehicle and went inside the building. A few minutes later, the man and woman returned to the SUV, and were arrested by CPD. The man was identified as Brown.
During an interview with CPD detectives, the woman who had been with Brown admitted that she had been driving with Brown in the SUV the day prior, when the shooting had occurred. She also permitted CPD to search her SUV, where they discovered Brown’s wallet in the driver’s side door panel, as well as a Sturm, Ruger & Company, Inc. model EC9s pistol on the driver’s floorboard, partially underneath the seat. The firearm’s magazine did not contain any live rounds.
During an interview with law enforcement, Brown admitted that he had possessed the gun and that he had fired it. Brown also acknowledged that, as a convicted felon, he knew that he could not possess firearms.
This case was investigated by the Clearwater Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Risha Asokan.
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.
Clay County Woman Pleads Guilty to Fraud Charge in Online Romance SchemeRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Iona K Coates (67, Orange Park) has pleaded guilty to conspiracy to commit wire fraud. Coates faces a maximum penalty of 20 years in federal prison and payment of restitution to the victims in the case.
According to court documents, in 2020, Coates met two individuals online through a dating website. She subsequently provided both individuals with her bank account information and began receiving money into her account. Coates then facilitated the movement of the money from her account to unknown individuals. In December 2020, the United States Secret Service (USSS) met with Coates and explained she was acting as a “money mule” in an online romance scheme. As part of the scheme, criminals acting as fake suitors on dating websites developed relationships and convinced victims to send money to Coates’s bank account. Coates, in turn, sent the money to criminals.
The USSS met with Coates and advised her to cease participation in the scheme, as the criminals were using her bank account to facilitate stealing money from the victims. After the meeting and advice for her to stop, Coates continued to facilitate the criminal activity. Between December 2020 through September 2021, she received $229,376.26 into her bank accounts from victims targeted in the online romance scheme.
This case was investigated by the United States Secret Service – Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Clay County Man Sentenced to Federal Prison for Unlawfully Possessing A Sawed-Off ShotgunRead the Press Release
Jacksonville, FL – United States District Judge Brian J. Davis has sentenced Dylan Milton Jarvis (31, Orange Park) to one year and four months in federal prison for unlawful possession of an unregistered National Firearms Act firearm (sawed-off shotgun). Jarvis was found guilty after a bench trial on April 25, 2023.
According to court documents, at approximately 5:30 pm on January 11, 2022, deputies from the Clay County Sheriff’s Office (CCSO) responded to calls of shots fired near Blanding Boulevard, a heavily traveled road in Orange Park. Eyewitnesses in the area described an individual, later identified as Jarvis, carrying a shotgun and firing multiple rounds. Upon making contact with Jarvis in a parking lot, the deputies determined that Jarvis had fired three to four shells from a Harrington & Richardson 12-gauge shotgun, then discarded the firearm. The deputies located the shotgun in the immediate vicinity of the parking lot, along with multiple spent shotgun shells. During an interview with CCSO, Jarvis admitted to illegally modifying the shotgun. Further investigation by the CCSO and the Bureau of Alcohol, Tobacco, Firearms and Explosives determined that Jarvis previously sawed off the barrel and the stock of the 12-gauge shotgun. A record check confirmed that this sawed-off shotgun was not registered to Jarvis in the National Firearms Registration and Transfer Record, as required under federal law.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
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.
Church Rock Man Arrested for Firearms Offenses in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Elijah I. Touchine, 23, of Church Rock, and an enrolled member of the Navajo Nation, made an initial appearance in federal court on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm and use of a firearm during a crime of violence.
According to the criminal complaint, early in the morning on July 22, the Navajo Police Department (NPD) received a report that a man identified as Touchine was walking around the area near his residence shooting a gun and threatening to hurt someone. Officers from the NPD and New Mexico State Police responded to the area and came under fire from an unknown direction and an unknown assailant and took tactical action to protect themselves and each other from the incoming fire.
Officers pursued the shooter on foot up into a canyon, but due to the dark conditions, they were unable to identify where the shooter was firing from. After about twelve hours, officers discontinued the search for the shooter.
The following day, July 22, the FBI received information about Touchine’s whereabouts and located him at a local gun store in Gallup, NM with the assistance of the Gallup Police Department. Touchine was taken into custody without incident and it was determined that he had forced, through threats of violence, his grandmother to purchase a gun for him. When asked why he was purchasing a gun, Touchine replied “I don’t know, shoot up any cop I see.”
A black handgun was located in the vehicle Touchine arrived at the location in.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Touchine faces a maximum sentence of up to life in prison.
This case was investigated by the Gallup Resident Agency of the Federal Bureau Investigation with assistance from the Navajo Police Department, New Mexico State Police and Gallup Police Department. Assistant United States Attorney Nicholas Marshall is prosecuting the case.
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Charlotte Woman Pleads Guilty to Federal Charges for $1.5 Million COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Jeannetta Blackmon, also known as Jeannetta Regan, 48, of Charlotte, pleaded guilty today to wire fraud and money laundering for obtaining more than $1.5 million in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for herself and her customers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina joins U.S. Attorney King in making today’s announcement.
According to filed plea documents, other court filings, and Blackmon’s admissions during the plea hearing, from April 2020 to November 2021, Blackmon executed a scheme to defraud the U.S. Small Business Administration (SBA) and SBA-backed lenders by obtaining fraudulent COVID-19 disaster relief funds for her businesses, J Renee Enterprises, Jeannetta Renee Girls Talk (JR Girls Talk), and Jrenee Investments (JR Investments). To obtain the relief funds, Blackmon submitted applications and supporting documents that contained false and fraudulent information regarding her businesses’ income, number of employees, gross revenues, and expenses. Blackmon also created and submitted fabricated bank statements and checks, in furtherance of the scheme. As a result of the fraudulent loan applications, Blackmon received more than $319,000 in disaster relief funds.
Blackmon also admitted to obtaining more than $300,000 in loan preparation fees from customers who paid Blackmon to prepare and submit on their behalf PPP and EIDL loan applications that contained false information, to include false employment data, inflated business income and expenses, and false tax information. Based on the fraudulent information, Blackmon’s customers received more than $1.2 million in disaster relief funds. To avoid detection, Blackmon directed her customers to pay her fees in checks or peer-to-peer payments.
Blackmon was released on bond after her plea hearing. The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine. The maximum statutory penalty for the money laundering offense is 10 years in prison and a $250,000 fine. A sentencing date has not been set.
The FBI investigated the case. Assistant U.S. Attorney Caryn Finley is in charge of the prosecution.
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 U.S. Attorneys’ Offices and 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 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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Cedar Rapids Man Sentenced for Possessing a Firearm as a Drug UserRead the Press Release
A man who possessed a firearm as an illegal user of a controlled substance was sentenced today to more than three years in federal prison.
Jacques Simpson, age 25, from Cedar Rapids, Iowa, received the prison term after a November 7, 2022 guilty plea to one count of possession of a firearm by a drug user and one count of wire fraud.
In a plea agreement, Simpson admitted that he knowingly possessed a firearm as a drug user. Late at night on November 9, 2021, a Cedar Rapids police officer came across a vehicle parked in a city park containing Simpson and a female. The officer smelled a strong odor of marijuana coming from the vehicle. After exiting the vehicle, Simpson admitted he had a firearm in his sweatshirt pocket. A Glock 19 9x19mm caliber pistol was found with a loaded magazine and one round chambered. Four additional loaded magazines of various calibers were found in Simpson’s car.
On November 24, 2021, Simpson bought another gun and lied on the ATF form about being a user of marijuana. On November 25, 2021, Simpson’s vehicle was stopped by law enforcement in Illinois. Simpson smelled of marijuana and had a BAC of .086%. During a search of Simpson, officers found the firearm purchased the day before. Nine additional loaded magazines of various calibers were found in Simpson’s car.
Simpson bought two more guns and again lied on the ATF forms about being a user of marijuana. On December 8, 2021, Simpson’s vehicle was stopped by law enforcement in Cedar Rapids. The officer smelled a strong odor of marijuana coming from the vehicle. Simpson admitted being an unlawful drug user and admitted smoking marijuana earlier that day. During the traffic stop, officers recovered from Simpson’s coat pocket a loaded Glock 29 firearm with a round in the chamber, along with a loaded Glock 21 firearm with a round in the chamber near the center console in the vehicle.
Simpson also admitted in the plea agreement to defrauding the Paycheck Protection Program (PPP). The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in late March 2020 that provides emergency financial assistance to the millions of Americans who are suffering the economic effects of the COVID-19 pandemic. One form of such financial assistance is the authorization of forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program. Simpson took out two PPP loans in March 2021 resulting in a total loss of $36,040. Simpson fraudulently claimed on the PPP loan application forms that he had viable businesses which in fact never existed, had no employees or any payroll expenses.
Simpson was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Simpson was sentenced to 45 months’ imprisonment. He was ordered to pay $19,790 in restitution to Capital Plus Financial, LLC, and $16, 250 in restitution to the Small Business Administration. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Simpson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-21.
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California Resident Sentenced to Prison for Committing Unemployment Insurance Benefits FraudRead the Press Release
LAS VEGAS – A Stockton, California, resident was sentenced today by United States District Judge Gloria M. Navarro to 27 months in prison followed by three years of supervised release for fraudulently using unemployment insurance benefits debit cards in other peoples’ names without their authorization to withdraw thousands of dollars.
Breon Dante Mims (32) pleaded guilty to illegal transaction with access devices.
According to court documents, on September 20, 2020, officers from the Las Vegas Metropolitan Police Department stopped Mims walking along Las Vegas Boulevard after observing him smoking a marijuana blunt in public. During the stop, officers found Mims in possession of $10,080 in cash and 10 California Employment Development Department (EDD) debit cards issued in other names. He admitted that he possessed and used these EDD debit cards without authorization; and that he submitted the unemployment claims associated with the EDD debit cards without authorization. At least $261,600 of unemployment benefits were approved, and Mims withdrew at least $77,000 from various ATMs in Nevada and California using these fraudulently obtained EDD debit cards.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Western Region made the announcement.
The DOL-OIG investigated the case. Assistant United States Attorney Jim Fang prosecuted the case.
In May 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 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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Butler Township man sentenced to 17 years in prison for gun, drug crimesRead the Press Release
DAYTON, Ohio – Timothy Jefferson, 46, of Butler Township, was sentenced in United States District Court here today to a total of 204 months in prison for dealing cocaine, meth, and fentanyl, and possessing firearms in furtherance of his drug dealing.
Jefferson pleaded guilty in March to one count of conspiring to possess with intent to distribute five kilograms or more of cocaine, 500 grams or more of methamphetamine, and 40 grams or more of fentanyl. He received a sentence of 144 months for this crime. He also pleaded guilty to possessing a firearm in furtherance of drug trafficking, a crime that carries a mandatory sentence of five years in prison to be served consecutive to any other penalty.
According to court documents, from at least May 2021 until December 2021, Jefferson obtained bulk amounts of cocaine, fentanyl and methamphetamine for resale and distribution in the greater Dayton area. Jefferson and others would travel out-of-state to receive the bulk amounts of narcotics, driving the drugs back to Southern Ohio and staying in hotels along the way.
“These drugs are very dangerous and pose a great risk to the safety of those who comes in contact with it,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “Jefferson’s actions of maintaining firearms to protect himself and his drugs also created a great risk to the community.”
Jefferson was also sentenced to forfeit three firearms, multiple rounds of ammunition, a Chevy El Camino and more than $55,000 in cash. He will be under court supervision for five years after he completes his prison term.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); members of the Tactical Crime Suppression Unit; Kettering Police Chief Christopher N. Protsman; and Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, announced the guilty sentence imposed today by U.S. District Judge Michael J. Newman. Assistant United States Attorney Amy M. Smith is representing the United States.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Billings felon sentenced for illegal possession of firearm after accidental shootingRead the Press Release
BILLINGS — A Billings man with a felony conviction was sentenced today to two years and three months in prison, to be followed by three years of supervised release, for illegally possessing a gun after he accidently shot a person and fled, U.S. Attorney Jesse Laslovich said.
Aaron Clifford Olson, 50, pleaded guilty in March to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents and in court that on Aug. 25, 2022, Billings Police Department officers responded to a shooting in which a witness said Olson had fled the scene. The victim had been shot in the back while in a car with Olson, who was sitting in the left rear passenger seat. Olson took off running after the gun went off. The firearm, a 9mm pistol, was recovered. Olson admitted to possessing it and to accidently shooting the victim. Olson had a previous felony drug conviction in Yellowstone County and was prohibited from possessing firearms. Olson was on supervision at the time of the shooting.
Assistant U.S. Attorney Thomas K. Godfrey prosecuted the case. The Billings Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Alaska Man Sentenced to 18 Months for Hate Crimes, Drug TraffickingRead the Press Release
ANCORAGE, Alaska – An Anchorage man was sentenced today to 18 months in prison for two acts of hate-motivated property damage and a drug trafficking offense.
According to court documents, in May 2021, Luke Foster, 28, placed stickers with a swastika and the text “WE ARE EVERYWHERE” at eight locations around Anchorage, including the Alaska Jewish Museum, the University of Alaska Anchorage campus and a site associated with the LGBTQ+ community. In September 2021, Foster returned to the Alaska Jewish Museum, where he placed another sticker and carved a swastika into the door. Foster was convicted of two counts of damaging religious property in connection to this conduct.
During the investigation into the vandalism, investigators also discovered that Foster was using social media to traffic psilocybin mushrooms, a Schedule I controlled substance under the Controlled Substances Act. Foster sold psilocybin to an undercover agent and boasted about his large collection of weapons and his intent to use them to protect his illegal drugs from law enforcement, if necessary.
Federal agents executed a search warrant on Foster’s residence and recovered psilocybin mushrooms, associated drug production items, multiple firearms, firearm ammunition, several thousand dollars in cash, and Nazi-inspired imagery, including a box of swastika stickers. Foster was convicted of an additional count of possession of controlled substances with intent to distribute for this conduct.
“Mr. Foster’s hateful acts of pro-Nazi vandalism across our city have caused significant harm to multiple communities and his trafficking of drugs put the people of Alaska in danger,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Anti-Semitic crimes and those targeting the LGBTQ+ community have no place here. Our U.S. Attorney’s Office will continue to work with our law enforcement partners to identify, investigate and prosecute crimes that target our communities to instill fear and distrust.”
“Mr. Foster’s hate-fueled crimes were meant to threaten and intimidate entire communities, having a wide-ranging impact beyond that of property damage,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “This is why civil rights investigations are among the FBI’s highest priorities. Together with our law enforcement partners, we stand ready to investigate and hold accountable those who commit civil rights violations against any person or group, and ensure justice for victims of bias-motivated crimes.”
The FBI’s Anchorage Field Office, with support from the Anchorage Police Department and Drug Enforcement Administration, investigated the case.
Assistant U.S. Attorney James Klugman prosecuted the case.
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Agoura Hills Accountant Pleads Guilty to Lying to Federal Officials Investigating Illegal Gambling OperationRead the Press Release
LOS ANGELES – An entertainment industry accountant pleaded guilty today to a felony charge for lying to federal law enforcement officials about his role in laundering illicit proceeds from an illegal gambling operation run by a former minor-league baseball player and which involved professional athletes.
William Eric Fulton, 59, of Agoura Hills, pleaded guilty to one count of making false statements.
According to his plea agreement, Fulton and his company provided bookkeeping, accounting, and tax preparation services for Wayne Joseph Nix, 46, of Newport Coast, a former minor-league baseball player who for nearly 20 years ran an illegal bookmaking business.
Beginning no later than 2011, Fulton was aware that Nix ran an illegal gambling business. Nonetheless, Fulton knowingly laundered Nix’s illegal gambling proceeds by continuing to provide financial services to Nix and providing access to the financial system. Specifically, Fulton continued to transfer money between accounts, issue checks and wires to Nix’s gambling clients who won large bets, and helped Nix obtain bank loans to facilitate the gambling business. Between 2010 and 2020, Fulton charged Nix approximately $336,645 in professional fees for his financial services.
Fulton also admitted in his plea agreement that on three separate occasions from March 2011 to October 2019 he provided personal loans to Nix totaling $1.25 million, which allowed Nix to pay his gambling clients when Nix needed rapid access to funds, which Fulton agreed to provide at no cost to Nix.
In addition, Fulton placed personal bets with Nix via the Sand Island Sports website. On one day, Fulton placed 14 bets, including three bets he made on a professional match of one of his company’s clients. Fulton also referred at least one of his company’s clients to Nix for the purposes of illegal gambling.
During an October 2021 interview with federal law enforcement about the Nix gambling business, Fulton falsely denied all knowledge of Nix’s involvement in sports gambling, falsely claimed to have had no knowledge that Nix was a bookmaker until learning law enforcement had searched Nix’s home in February 2020, and repeatedly made the false assertion that he had never placed a bet with Nix.
United States District Judge Dolly M. Gee scheduled a November 29 sentencing hearing, at which time Fulton will face a statutory maximum sentence of five years in federal prison. Fulton has agreed to pay a fine of no less than $673,290.
Nix pleaded guilty in April 2022 to one count of conspiracy to operate an illegal gambling business and one count of subscribing to a false tax return. His sentencing hearing is scheduled for March 6, 2024.
Nix’s longtime partner in the gambling operation – Edon Yoshida Kagasoff, 45, of Lake Forest – pleaded guilty in April 2022 to one count of conspiracy to operate an illegal gambling business. Kagasoff was sentenced on July 5 to six months of probation, was fined $1,000, and was ordered to forfeit $3,164,563 in ill-gotten gains.
Former Major League Baseball player Yasiel Puig Valdés, 32, who allegedly lied to federal law enforcement investigating Nix’s illegal gambling operation, is charged with obstruction of justice and making false statements. His trial is scheduled for January 16, 2024.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Homeland Security Investigations and IRS Criminal Investigation are conducting the ongoing investigation in this matter. The HSI agents are part of the El Camino Real Financial Crimes Task Force.
Assistant United States Attorneys Jeff Mitchell of the Major Frauds Section and Dan Boyle of the Environmental Crimes and Consumer Protection Section are prosecuting this case.
24 July 2023
‘Secretary’ to Mexican Mafia Shot Caller Found Guilty of RICO Conspiracy for Participating in Armed Robbery and ShootingRead the Press Release
LOS ANGELES – A federal jury today found a La Verne woman guilty of federal criminal charges related to her role as a “secretary” to an imprisoned Mexican Mafia “shot caller” who controlled Latino gangs in Pomona, including facilitating an armed robbery and shooting, as well as distribution of narcotics and extortion.
Kelly Deshannon, 42, was found guilty of one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, one count of committing a violent crime in support of racketeering activity (VICAR), and one count of using a firearm in furtherance of a violent crime.
According to evidence presented at a five-day trial, Deshannon served as a secretary to Seferino Gonzalez, an imprisoned shot caller of the Michael Lerma Cell of the Mexican Mafia. From prison, Gonzalez exerted control over Latino gangs, including overseeing drug trafficking and other offenses committed in Pomona. As a secretary, Deshannon helped facilitate an attempted armed robbery of car keys to a Mercedes-Benz SUV on July 14, 2013, which resulted in the shooting of a victim. Deshannon knew the victims’ address, that the victims had access to the car keys, and had spoken to the victims. On the night of the shooting, Deshannon brought the shooter and other defendants with her to the victims’ address and pointed out a victim to her accomplices. The victim, though wounded, survived the attack.
Deshannon’s other criminal conduct included broking drug sales and collecting extortionate taxes in Lerma Cell territory.
Lerma, who is this case’s lead defendant, was indicted in 2018 and has pleaded not guilty to RICO conspiracy and multiple other federal charges. His trial is scheduled for July 23, 2024. He is in federal custody.
United States District Judge George H. Wu scheduled an October 26 sentencing hearing, at which time Deshannon will face a statutory mandatory minimum sentence of seven years in federal prison and a statutory maximum sentence of 20 years in federal prison.
At the conclusion of a 10-day trial in March 2023, a federal jury found Deshannon not guilty of attempted carjacking and deadlocked on four other counts. At the request of federal prosecutors, Judge Wu on June 28 dismissed one VICAR count against Deshannon.
The FBI San Gabriel Valley Safe Streets Task Force investigated this matter. The FBI San Gabriel Valley Safe Streets Task Force was formed in 2008 and is based out of the Pomona Police Department. One of the primary missions of the FBI’s San Gabriel Valley Safe Streets Task Force is to work with the Los Angeles County Sheriff’s Department to combat, investigate, and dissuade gang violence from occurring within the Los Angeles County Jail and surrounding Los Angeles area. The Covina Police Department assisted in the investigation.
Assistant United States Attorneys Jason C. Pang of the Major Frauds Section and Varun Behl of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Woman Facing Federal Charges for Swindling More Than $300,000 from Her GrandmotherRead the Press Release
EAST ST. LOUIS, Ill. – A Florida woman was arraigned on an indictment in federal court on Wednesday charging her for allegedly scamming her grandmother living in Cahokia Heights out of more than $300,000.
Tanya M. Aboseada, 38, of Pompano Beach, Florida, is charged with 12 counts of wire fraud.
“Financial crimes against the elderly for personal gain are intolerable, and offenders will be brought to justice,” said U.S. Attorney Rachelle Aud Crowe.
FBI Springfield Field Office Special Agent in Charge David Nanz said, “The FBI remains committed to protecting the elderly in our communities from financial fraud and holding accountable those who exploit them.”
The indictment alleges Aboseada convinced her grandmother to wire money into her bank account under false pretenses on at least 12 occasions between November 2021 and August 2022. Aboseada lied about needing money in order to transfer a truck title into her name, pay money she owed to the IRS, pay attorney fees and fines for a vehicular accident she was in, and to pay the family of a child she killed in a vehicular accident to avoid going to jail.
In total, the fraudulent transactions exceeded $300,000.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Wire fraud is punishable by up to 20 years imprisonment.
This case was brought as part of the Department of Justice’s Elder Fraud Initiative. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
The FBI Springfield Field Office is conducting the investigation. Assistant U.S. Attorney Scott Verseman is prosecuting the case.
Wisconsin Man Sentenced for Making Racially-Charged Threats Toward Black ResidentsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin,
joins Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division in announcing William McDonald, 45, of West Allis was sentenced on June 29, 2023, in federal court in the Eastern District of Wisconsin to 30 months in prison followed by three years of supervised release for intimidating and interfering with Black residents because of their race and because they were exercising their right to fair housing.
According to court documents, McDonald vandalized a Black woman’s vehicle parked outside her apartment by slashing her tires and smashing her windshield in March 2021. McDonald then left on her car a note filled with racial slurs, threatening to slash her throat, and demanding that she move out of West Allis. A week later, McDonald slashed two of her car tires and left another note filled with racial slurs and giving her an ultimatum – move out of the neighborhood or suffer violence. In April 2022, another Black woman and her two minor children moved into McDonald’s apartment complex. Shortly after they moved in, McDonald vandalized her front door with racial graffiti and left her a note, calling her family a racial slur and demanding that she get out of the building.
“Every person in the United States has the right to live in their homes and neighborhoods free from the threat of violence based on race,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will vigorously enforce federal laws that protect all residents against race-based threats like those made by this defendant. This sentence should send a strong message to others who would carry out similar acts that they will be brought to justice.”
United States Attorney Haanstad said, “The protection of citizens’ civil rights, including the right to live free from race-based discrimination and intimidation, is a top priority for the United States Attorney’s Office. We will continue to work closely with federal, state, and local partners to bring federal resources to bear on those who violate the rights of any of our fellow citizens to live where they choose.”
“The 30-month sentence of William McDonald is a direct outcome of the unrelenting efforts and dedication of federal and local law enforcement officers and prosecutors to protect the rights of every Wisconsin citizen to live in a safe and protected environment free from race-based violence,” said Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office. “Additionally, the Milwaukee Field Office of the FBI along with all its law enforcement partners are unwavering in their joint commitment to combat any and all crimes and discrimination based on race and ethnicity with the goal to make Wisconsin a safer and more inclusive community for everyone.”
The FBI Milwaukee Field Office and the West Allis Police Department investigated the case.
Assistant U.S. Attorneys Christopher Ladwig and Philip Kovoor for the Eastern District of Wisconsin and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section prosecuted the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
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Wisconsin Man Sentenced for Making Racially-Charged Threats Against Black ResidentsRead the Press Release
A Wisconsin man was sentenced Thursday in federal court in the Eastern District of Wisconsin to 30 months in prison followed by three years of supervised release for intimidating and interfering with Black residents because of their race and because they were exercising their right to fair housing.
According to court documents, William McDonald, 45, of West Allis, vandalized a Black woman’s vehicle parked outside her apartment by slashing her tires and smashing her windshield in March 2021. McDonald then left on her car a note filled with racial slurs, threatening to slash her throat, and demanding she move out of West Allis. A week later, McDonald slashed two of her car tires and left another note filled with racial slurs and giving her an ultimatum – move out of the neighborhood or suffer violence. In April 2022, a Black woman and her two minor children moved into McDonald’s apartment complex. Shortly after they moved in, McDonald vandalized her front door with racial graffiti and left her a note, calling her family a racial slur and demanding she get out of the building.
“Every person in the United States has the right to live in their homes and neighborhoods free from the threat of violence based on race,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will vigorously enforce federal laws that protect all residents against race-based threats like those made by this defendant. This sentence should send a strong message to others who would carry out racially motivated threats and acts of violence that they will be brought to justice.”
“The protection of citizens’ civil rights, including the right to live free from race-based discrimination and intimidation, is a top priority for the U.S. Attorney’s Office,” said U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “We will continue to work closely with federal, state, and local partners to bring federal resources to bear on those who violate the rights of any of our fellow citizens to live where they choose.”
“The 30-month sentence of William McDonald is a direct outcome of the unrelenting efforts and dedication of federal and local law enforcement officers and prosecutors to protect the rights of every Wisconsin citizen to live in a safe and protected environment free from race-based violence,” said Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office. “Additionally, the Milwaukee Field Office of the FBI along with all its law enforcement partners are unwavering in their joint commitment to combat any and all crimes and discrimination based on race and ethnicity with the goal to make Wisconsin a safer and more inclusive community for everyone.”
Assistant Attorney General Clarke, U.S. Attorney Haanstad and Special Agent in Charge Hensle made the announcement.
The FBI Milwaukee Field Office and the West Allis Police Department investigated the case.
Assistant U.S. Attorneys Christopher Ladwig and Philip Kovoor for the Eastern District of Wisconsin and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section prosecuted the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
United States Resolves ADA Case with Warwick School Department to Ensure Access to Local PlaygroundRead the Press Release
PROVIDENCE – The Warwick School Department has entered into a settlement agreement with the United States to ensure equal access for children and adults with disabilities at the Warwick Neck Elementary School playground, announced Zachary A. Cunha, United States Attorney for the District of Rhode Island.
This agreement follows an investigation that began after the U.S. Attorney’s Office received a complaint alleging that the Warwick School Department renovated the Warwick Neck Elementary playground in 2019, but in doing so, failed to make access to the renovated playground accessible to individuals with disabilities. This agreement will remedy that problem, and commits the Warwick School Department to making changes that include significant modifications and improvements that will ensure that the playground will be readily accessible to and usable by individuals with disabilities. Those modifications are now underway.
The matter was handled by Assistant U.S. Attorney Amy R. Romero, with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
The Department of Justice has a number of publications available to assist entities in complying with the ADA. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD). Any member of the public who wishes to file a complaint alleging that a place of public accommodation or public entity in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at (401) 709-5000 or by email at [email protected].
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ada_title_ii_warwick_neck_school_playground_settlement_agreement_.pdfUnited States Attorney Breon Peace Announces Conviction Review ProcessRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today the formation of the Office’s Conviction Integrity Committee and the Office’s process to receive, evaluate, and review claims of wrongful convictions. In October 2022, Mr. Peace appointed Assistant United States Attorney Kayla Bensing to the newly created position of Conviction Integrity Coordinator to formalize the Office’s conviction integrity process and collaborate with our law enforcement partners who are undertaking similar efforts to ensure the integrity of all convictions.
“It is critical to this Office’s law enforcement mission and our sacred responsibility to seek justice and uphold the public trust that, whenever there is reason to doubt the integrity of conviction, we move quickly to evaluate the prosecution and take the necessary steps to achieve a just result,” stated United States Attorney Peace. “From my first day as U.S. Attorney, it has been my priority to pursue justice and protect the civil rights of everyone in our community, without bias and with compassion, and I am confident that the measures announced today will help accomplish that goal.”The United States Attorney’s Office for the Eastern District of New York is committed to maintaining rigorous internal processes in investigating and prosecuting cases as well as assisting state and local partners in maintaining the integrity of our justice system.
If you have an inquiry related to the integrity of a conviction, please email [email protected]. Please provide the information requested here. Please note that decisions as to whether and how to investigate a claim are made in the U.S. Attorney’s discretion and are not reviewable by any court. There is no timeframe by which claims presented to the U.S. Attorney’s Office will be resolved, but the Office will make every effort to expedite the resolution of each inquiry.
U.S. Postal Worker Is Indicted for Conspiracy to Commit Bank Fraud and Money LaunderingRead the Press Release
CHARLOTTE, N.C. – A federal indictment was unsealed in court today, following the arrest and initial appearance of Jakia McMorris, 32, of Charlotte, who is charged with conspiracy to commit bank fraud and money laundering conspiracy, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from at least May 2021, McMorris was an employee of the U.S. Postal Service (USPS), working as a city carrier at the North Tryon Station in Charlotte. The indictment alleges that on or around September 13, 2021, McMorris reported that, while she was delivering mail, she lost a USPS universal key that could open many U.S. mailboxes. After that day, McMorris allegedly stopped reporting for work at the USPS.
According to allegations in the indictment, beginning in September 2021, McMorris and her co-conspirators executed a scheme to commit bank fraud by stealing more than $40,000 in checks, including from the U.S. mail. The indictment alleges that the co-conspirators used stolen universal USPS keys to open multi-unit outdoor mailboxes in Charlotte and steal mail. The stolen mail included business checks.
As part of the scheme, the indictment alleges that the co-conspirators deposited the stolen checks into bank accounts they controlled, including in bank accounts in McMorris’s name. It is alleged that the co-conspirators then quickly withdrew the cash from the accounts before the banks detected the fraud. McMorris allegedly received a portion of the funds as payment for using her bank accounts to perpetuate the scheme. As part of the conspiracy, the indictment also alleges that the co-conspirators attempted to disguise the payments made to the defendant by using the fraudulent proceeds in McMorris’s bank account to purchase money orders, which McMorris then deposited back into her bank accounts.
McMorris was released on bond following her initial appearance in federal court today. The bank fraud conspiracy charge carries a maximum penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a statutory penalty of 20 years in prison and a $500,00 fine.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked USPS-OIG for the investigation which led to the charges.
Assistant U.S. Attorney Jenny Sugar with the U.S. Attorney’s Office in Charlotte is prosecuting the case.
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In a separate case, federal charges were filed against Douglas Gumbs, 38, of Charlotte, for mail theft and related charges. According to allegations in the indictment, from 2022 to April 2023, Gumbs engaged in a mail theft and bank fraud scheme by stealing large quantities of U.S. mail from residential and business mailboxes in Charlotte. The stolen mail included business and individual checks, credit cards, tax forms, and other financial information. In 2022, Gumbs allegedly was found with more than 850 individual pieces of stolen mail.
The indictment alleges that Gumbs deposited the stolen checks into bank accounts he controlled and withdrew the funds before the financial institutions learned that the deposited checks were stolen. The indictment further alleges that Gumbs engaged in identity theft by creating false identification documents in the names of individuals whose mail Gumbs’ had stolen. Gumbs then allegedly used the victims’ stolen identities in furtherance of the fraud, including to access the victims’ bank accounts and to open new bank accounts in some of the identity theft victims’ names.
Gumbs is currently in federal custody. He is charged with receipt and possession of stolen mail, theft of mail left for collection, destruction of letter boxes and bank fraud. The receipt and possession of stolen mail and theft of mail left for collection charges carry a maximum penalty of five years in prison and a $250,000 fine. The destruction of letter boxes charge carries a maximum penalty of three years in prison and a$250,000 fine. The bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine.
The charges against Gumbs are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The FBI in Charlotte and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
U.S. Attorney’s Office organizes gang resistance education and training for local school resource officersRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia partnered with the Georgia Alliance for School Resource Officers and Educators, the Georgia Public Safety Training Center, and the Georgia Gang Investigators Association last week to provide an intensive law enforcement training, “G.R.E.A.T.” (Gang Resistance Education and Training), for more than 40 police officers from school systems in the Northern District of Georgia.
“Many of law enforcement’s best work happens daily in our schools to keep our children safe while they learn. We are excited to facilitate this training, which will boost the ability of school resource officers to better connect with students in a positive way,” said U.S. Attorney Ryan K. Buchanan. “Our goal is to successfully divert children from the destructive life of crime that gang activity fosters. G.R.E.A.T. offers real-time skills training aimed at preparing officers for interactions with students who may face decisions regarding gang-affiliation, frequently by force. This training enables our office to expand our multi-faceted approach to stemming youth violence, youth incarceration and gang recruitment, providing an excellent addition to our annual summer youth violence intervention programs.”
“The voices of gangs are very loud in our kids' ears. They are robbing them of their opportunity for success. Our voices must be louder! Thanks to the U.S. Attorney, GASROE, GPSTC, and G.R.E.A.T., we can provide our kids with tools to help resist gangs,” said Ronald S. Applin Sr., Chief of Police, Executive Director of Safety, Atlanta Public Schools Police.
“It was an honor to work with the G.R.E.A.T. organization to host this gang intervention training with School Resource Officers (SRO) throughout the Northern District of Georgia. This training is another way to enhance our SROs skills and expertise in protecting our youth from gangs. Furthermore, we are grateful to have strong partnerships with the U.S. Attorney’s Office, Georgia Alliance for School Resource Officers and Educators, and Georgia Gang Investigators Association to bring trainings such as these to support our SROs in building strong relationships with our youth,” said Chris Wigginton, Executive Director, Georgia Public Safety Training Center.
G.R.E.A.T. is an evidence-based gang and violence prevention program built around school-centered, law enforcement officer-instructed classroom curricula. Since its inception, G.R.E.A.T. has been used to train thousands of sworn officers from around the United States as certified G.R.E.A.T. instructors.
The program is designed to prevent and reduce delinquency, youth violence, and gang membership – particularly for children during those formative years when the threat of introduction into gangs is most acute. The program also seeks to help children develop a more positive relationship with law enforcement and to offer students opportunities to model and practice life skills and attitudes needed to treat others with respect and empathy, make better choices, and set positive and achievable goals.
U.S. Attorney Buchanan, during televised remarks this week, emphasized the vital role that positive interactions between school children and law enforcement officers can play in preventing gangs from recruiting children in our communities (see U.S. Attorney’s Interview). “As we work to make our schools and communities safer, we know that building trust is critical,” said U.S. Attorney Buchanan. “G.R.E.A.T. will help these police officers develop skills critical in creating meaningful and positive interactions between students and law enforcement officers. These officers are already committed to keeping our children safe, and we believe this additional training will better enable them to speak directly to gang influences.”
The training arrived just in time for the start of the 2023-2024 school term. Determined to help keep children in the Northern District of Georgia safe in schools and out of gangs, over 40 school resource officers in metro-Atlanta agreed to participate in this week-long, intensive program. These officers, specifically chosen by their respective agencies, serve at over 70 local schools that enroll over 26,000 students. Several of the officers in attendance remarked on the critical need for law enforcement officers to hone skills in connecting with school children and gaining their trust – a central aim of the G.R.E.A.T. training curricula.
The training took place July 17- 21, 2023, at the Georgia Public Safety Training Center in Forsyth, and was presented by the Institute for Intergovernmental Research, a highly experienced team of professionals from around the country with extensive experience in gang prevention and intervention.
This training is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Lawrence Men Plead Guilty to Conspiring to Distribute Fentanyl at Veterans Affairs Medical Center in BedfordRead the Press Release
BOSTON – Two Lawrence men have pleaded guilty in federal court in Boston to conspiring to distribute fentanyl to individuals at the Bedford Veterans Affairs Medical Center.
Deiby Bladimil Casado Ruiz, 30, and Pedro Antonio Sanchez Bernabel, 31, both of Lawrence, pleaded guilty on July 21, 2023 to one count each of conspiracy to distribute fentanyl and distribution of fentanyl. U.S. District Court Judge Indira Talwani scheduled Casado Ruiz’s sentencing for Nov. 1, 2023 and Bernabel’s sentencing for Nov. 6, 2023. The defendants were charged in November 2022
Between July 27, 2022 and November 2022, Casado Ruiz and Bernabel conspired to distribute more than 40 grams of fentanyl. Specifically, the defendants sold fentanyl to individuals at the Veterans Affairs Medical Center in Bedford, including one veteran who was seeking treatment at the Medical Center for a substance use disorder.
The charge of conspiracy to distribute and possess with intent to distribute fentanyl and the charge of distribution of fentanyl each provides for a maximum sentence of 20 years in prison, at least three years of supervised release and a maximum fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Christopher Algieri, Special Agent in Charge of the VA Office of Inspector General’s Northeast Field; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Bedford VA Medical Center Police Service and the Lawrence Police Department. Assistant U.S. Attorneys Patrick Callahan, Lauren Graber and Kelly Lawrence of the Health Care Fraud Unit are prosecuting the case.
Two Galt Men Indicted for Being Felons in Possession of FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday, July 20, 2023, against Galt residents Dexter Weeks, 32, and William Lesley, 33, charging both with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 25, 2023, law enforcement officers conducted a parole search of Weeks’ residence, where Lesley also was staying. Over the course of the search, law enforcement found multiple firearms of different calibers from in Week’s bedroom and Lesley’s bedroom and other areas of the residence. The firearms included a Saiga AK-47 semi-automatic rifle. Weeks and Lesley are prohibited from possessing firearms or ammunition because they each have multiple state felony convictions, including convictions for felon in possession of a firearm in Cook County, Illinois.
This case is the product of an investigation by the Sacramento Sheriff’s Office, the Parole Division of the California Department of Corrections and Rehabilitation, the Federal Bureau of Investigation, and the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Haddy Abouzeid is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Three New Orleans Men Sentenced for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that TERRAN WILLIAMS, a/k/a “Funky,” age 25, ALLEN GRAY, a/k/a “Kyedi,” age 26, and KERRY BROOKS, age 34, all residents of New Orleans, Louisiana, were sentenced today by United States District Judge Carl J. Barbier in connection with a twelve-count indictment charging them with violations of the Federal Gun Control Act and the Federal Controlled Substances Act.
WILLIAMS was granted a downward variance and received a total sentence of 180 months imprisonment, four years of supervised release following his term of imprisonment, and a $600 mandatory special assessment fee.
GRAY received a total sentence of 180 months imprisonment, four years of supervised release following his term of imprisonment, and a $600 mandatory special assessment fee.
BROOKS received a total sentence of 197 months imprisonment, five years of supervised release following his term of imprisonment, and a $600 mandatory special assessment fee.
According to court records, WILLIAMS, GRAY, and BROOKS were charged with twelve separate counts related to four different events in which they were caught by police with guns and drugs. WILLIAMS and GRAY were charged in Counts 1, 2, and 3 with possession of marijuana and fentanyl with the intent to distribute, possessing firearms in furtherance of drug trafficking, and being felons in possession of firearms. Those three counts related to an August 26, 2020 car chase in which the defendants wrecked a Nissan Maxima during flight from police, leaving behind guns, drugs, and their phones with attached identification documents in the wrecked vehicle. The FBI obtained warrants for WILLIAMS and GRAY.
When the FBI arrested WILLIAMS on the outstanding warrant on September 12, 2020, he had a rifle, a pistol, and a large amount of marijuana. A grand jury subsequently charged WILLIAMS with three additional counts, Counts 4, 5, and 6, for possession with intent to distribute a quantity of marijuana, possessing firearms in furtherance of drug trafficking, and being a felon in possession of firearms.
Two days after arresting WILLIAMS, the FBI found GRAY and BROOKS in a New Orleans hotel room in possession of a large quantity of marijuana, over 40 grams of fentanyl bagged for distribution, $4,000 cash and two handguns with extended magazines. GRAY and BROOKS were ultimately charged in Counts 7, 8 and 9, with possession with intent to distribute marijuana and fentanyl, possession of firearms in furtherance of drug trafficking, and being felons in possession of firearms.
The FBI later arrested BROOKS at an apartment outside of New Orleans and recovered $20,000 in cash, a digital scale with powder, a small bag of fentanyl, and another pistol with an extended magazine. BROOKS was charged in Counts 10, 11 and 12, with possession with intent to distribute a quantity of fentanyl, possessing firearms in furtherance of drug trafficking, and being a felon in possession of a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. This case was prosecuted by Assistant United States Attorneys David Haller and Inga Petrovich of the Violent Crime Unit and Elizabeth Privitera, Chief of the Violent Crime Unit.
Texas Man and Nebraska Woman Sentenced for Second Degree Murder, Assault Resulting in Serious Bodily Injury, and Assault with a Dangerous WeaponRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Plano, Texas, man convicted of Second Degree Murder and a Niobrara, Nebraska, woman convicted of Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon.
Alexis Delarosa, age 33, was sentenced to 30 years and five months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Delarosa’s sentencing took place on July 20, 2023.
Justina Tuttle, age 39, was sentenced to six years and eight months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Tuttle’s sentencing took place on December 27, 2022.
Delarosa and Tuttle were indicted by a federal grand jury in September of 2021. Tuttle pleaded guilty on May 23, 2022. Delarosa pleaded guilty on March 22, 2023.
The convictions stemmed from an incident on December 21, 2020, at Wagner, South Dakota, when both Delarosa and Tuttle went to the residence of George Cournoyer, Jr. Once there, Delarosa and Cournoyer got into a physical fight which resulted in Delarosa hitting Cournoyer multiple times with a hammer. Tuttle joined in at some point and hit Cournoyer with a bat. Delarosa and Tuttle left the home without calling the police. Cournoyer died a short time later.
This case was investigated by the FBI and Yankton Sioux Law Enforcement. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
Delarosa and Tuttle were immediately remanded to the custody of the U.S. Marshals Service following their respective sentencings.
Somerville Man Sentenced to Nearly Nine Years in Prison for Methamphetamine ConspiracyRead the Press Release
BOSTON – A Somerville man was sentenced on July 19, 2023 in federal court in Boston for his role in a methamphetamine trafficking conspiracy.
William Velez, 41, was sentenced by U.S. District Court Judge Denise J. Casper to 105 months in prison and three years of supervised release. In March 2022, Velez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine.
In or about October 2019 through in or about September 2020, Velez and others conspired to distribute and possessed with intent to distribute methamphetamine throughout the Everett and Boston areas.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division made the announcement today. Assistant United States Attorney Alathea Porter of the Narcotics & Money Laundering Unit prosecuted the case.Slidell Man Indicted for Federal Gun and Drug Offenses and Possession of Stolen VehicleRead the Press Release
NEW ORLEANS, LOUISIANA – MERVYN LUCAS, age 28, a resident of Slidell, Louisiana, was charged on May 19, 2023 in a four-count indictment for violating the Federal Gun Control Act, the Federal Controlled Substances Act, and possessing goods stolen from an interstate shipment, announced United States Attorney Duane A. Evans. The indictment was unsealed on July 21, 2023.
LUCAS is charged in Count 1 with possession with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D). He is charged in Count 2 with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). He is charged in Count 3 with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). He is charged in Count 4 with possession of a vehicle stolen from an interstate shipment, in violation of Title 18, United States Code, Section 659.
If convicted of Count 1, LUCAS faces a maximum term of imprisonment of five years, up to a $250,000 fine, and at least two years of supervised release. If convicted of Count 2, he faces a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. If convicted of Count 3, he faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, and up to three years of supervised release. If convicted of Count 4, he faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to three years of supervised release. Each count also carries a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and the Louisiana State Police. Assistant United States Attorney David Berman of the Violent Crimes Unit is in charge of the prosecution.
Skimmer Gets Prison for Million-Dollar Financial Identity Theft SchemeRead the Press Release
SAN DIEGO – A Los Angeles metropolitan resident was sentenced today to 41 months in prison for repeatedly installing specialized devices to steal the financial information of unwitting victims at gas pumps throughout Southern California.
Haykaz Mansuryan, age 34, admitted in his plea agreement that he broke into dozens of gas pumps to install “skimmers”—customized electronic devices to steal credit and debit card information from unknowing patrons using the pumps. Mansuryan admitted that the conspiracy he participated in purloined over $1 million while he was involved.
"The public has the right to safely conduct everyday financial transactions,” said U.S. Attorney Randy S. Grossman. “Anyone who steals from unwitting victims will face justice.”
Mansuryan admitted that he and his accomplices broke into gas pumps throughout Southern California and installed customized skimming devices, built by other members of the scheme, to steal victims’ credit and debit card information during otherwise legitimate transactions. Mansuryan and his conspirators would then make unauthorized cards encoded with victims’ information for their own use, stealing victims’ funds, or otherwise sell victims’ financial information outright to others who would exploit it for their own gain.
According to court documents, law enforcement recovered 54 skimming devices from different Southern California gas stations visited by Mansuryan.
Mansuryan admitted in his plea agreement that he personally received $931,213.92 from the scheme over the course of his participation, which lasted from August 2018 to October 2021. He was ordered to forfeit that amount, and to participate in paying restitution of $923,374.14 to the victims of his crime together with his codefendants.
Other defendants in this and a related case previously received prison time for similar conduct. On January 6, 2023, Robert Fichidzhyan was sentenced to 41 months in custody for his role in building the skimmers used by Mansuryan and his associates. He was also ordered to pay $619,923.45 in restitution. On June 23, 2022, Margar Simonyan was sentenced to 12 months and 1 day in custody in related case number 21-cr-2659-BAS, together with $11,810 of forfeiture and restitution. One defendant remains a fugitive. Two defendants, Hayk Shakaryan and Vasiliy Polyak, are presently set for jury trial September 12, 2023. The remaining defendants are pending sentencing.
“This case is a great reminder that even the most technical and sophisticated criminal groups can be dismantled by the collaborative efforts of law enforcement professionals. I am truly proud of the hard work our dedicated men and women have performed on this case, which continues to show we will continuously pursue those taking advantage of unknowing victims and protect the U.S. financial system,” said Jason Reynolds, Special Agent in Charge with the San Diego Field Office of the United States Secret Service.
This investigation involved significant contributions from many different sources, including the Internal Revenue Service, Criminal Investigation; the San Diego Police Department; the San Diego County Sheriff’s Department; the Glendale Police Department; the California Department of Food and Agriculture’s Bureau of Weights and Measures; the U.S. Attorney’s Office for the Central District of California; and other state, local, and federal law enforcement partners, as well as assistance from and partnerships with the financial and private sectors, such as the National Cyber-Forensics Training Alliance (NCTFA). Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
DEFENDANTS Case Number 21-CR-2660-BAS
- Haykaz Mansuryan 34 Residence: Granada Hills, California
- Hayk Shakaryan 34 Residence: Glendale, California
- Davit Babayan 36 Residence: Granada Hills, California
- Artour Hakobyan 39 Residence: Glendale, California
- Petros Armutyan 36 Fugitive
- Hakop Karayan 44 Residence: Glendale, California
- Robert Fichidzhyan 40 Residence: North Hollywood, California
- Vasiliy Polyak 32 Residence: Glendale, California
SUMMARY OF CHARGES
Conspiracy to Use Unauthorized Access Devices and Possess Device-Making Equipment, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(2), and 1029(a)(4)
Maximum Penalty: five to ten years in prison, depending upon prior convictions; fine of $250,000 or twice the gross gain or loss
Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A (Defendants 1, 2, and 4 through 6 only)
Maximum Penalty: mandatory minimum two years in prison, consecutive to any other sentence
AGENCIES
U.S. Secret Service
Sioux Falls Man Sentenced for Attempted Enticement of a MinorRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Lawrence L. Piersol has sentenced a Sioux Falls, South Dakota, man convicted of Attempted Enticement of a Minor. The sentencing took place on July 24, 2023.
Sky Thomas Roubideaux, age 23, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Roubideaux was indicted by a federal grand jury in April of 2022. He was found guilty following a jury trial on April 20, 2023.
The conviction stemmed from an incident on March 7, 2022, when Roubideaux used his cell phone to attempt to coerce an undercover agent posing as a 15-year-old male to engage in sexual activity.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the FBI, Homeland Security Investigations, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Division of Criminal Investigation, and the SD Internet Crimes Against Children task force. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Roubideaux was immediately remanded to the custody of the U.S. Marshals Service.
Significant sentence imposed in multiple-man robbery crewRead the Press Release
HOUSTON – The final member of a 12-person robbery crew has been ordered to prison for his role in a string of armed jewelry store robberies, announced U.S. Attorney Alamdar S. Hamdani.
Kenneth Dewayne Cooper, 34, Houston, pleaded guilty Oct. 27, 2017.
U.S. District Judge Andrew Hanen has now imposed a total of 194 months in federal prison – 110 months for the robberies and a consecutive 84 months for aiding and abetting the use of a firearm during a crime of violence. The sentence will be to be immediately followed by three years of supervised release.
Others previously convicted and sentenced include Lontay Lavelle Young, 39, Deshaun Devon Waldrup, 27, Edward Ray Lavergne Jr., 39, Jesse Markise McQueen, 32, Kevin Craig Gray, 38, Louis Jerome Hines, 44, Terry Dwight Washington, 37, Tony Dontrel Young, 32, Barry Lloyd Jones, 30, Ross White-Leonard, 33, and Denzell Devoe Lucious, 31. All are from Houston.
Lontay Young, Tony Young, Waldrup, Lavergne, McQueen, White-Leonard and Jones received respective sentences of 209, 132, 125, 114, 180, 102 and 156 months, respectively. Gray and Washington both received 147-month-terms of imprisonment, while Hines was ordered to serve 171 months. Lucious was sentenced to 168 months.
“Trafficking in violence and fear, this armed robbery crew targeted a dollar store, a jewelry store in a mall, a furniture store and other similar places where regular families shop every day,” said Hamdani. “This U.S. Attorney’s Office will crack down on this type of violence and will continue to ensure the public safety by doing what we can by fighting for appropriate sentences in federal court to get violent actors off the streets.”
This group conducted at least six robberies over the course of six months at various commercial establishments.
On Oct. 22, 2015, Lontay Young and Hines robbed the Family Dollar store on Wayside in Houston while wearing masks and carrying handguns.
Then, on Jan. 11, 2016, Jones, Cooper, Lucious and McQueen traveled outside of Houston to rob the Ben Bridge Jewelers at Barton Springs Mall in Austin. There, they stole a significant amount of Rolex watches and jewelry.
Less than two weeks later, this group, along with Tony Young, also robbed the Kay Jewelers located at the Houston Premium Outlet Mall. While Jones, Cooper and Young accosted the employees at gunpoint, Lucious sat outside acting as a lookout. McQueen distracted the security guard while the robbery occurred. They again stole numerous watches and jewelry.
On March 3, 2016, Lontay Young, Washington, Gray and Lavergne also held up the ANF Auto Finance on North Shepherd Drive. They entered the business acting as customers until Gray pulled out a gun. They then stole cash and property of the business, employees and customers.
Lontay Young later proceeded to commit two more robberies. Those included the March 9, 2016, robbery of Cash America Pawn on Jensen Drive with Waldrup and the Affordable Furniture store on the North Freeway on March 17, 2016, along with Jones and White-Leonard.
At the time of the furniture store robbery, authorities arrived on scene and shots were fired.
All have been and will remain in custody.
The Bureau of Alcohol, Tobacco and Firearms conducted the investigation in conjunction with police departments in Houston and Austin and Harris County Sheriff’s Office. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
This case was prosecuted as part of the Houston Law Enforcement Violent Crime Initiative, which combines personnel and resources from numerous federal, state and local agencies. The goal is to reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Under the PSN umbrella, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN partners focus enforcement efforts on the most violent offenders and work with locally based prevention and reentry programs for lasting reductions in crime.
Settlement with Rakesh Kansal, M.D. for Violations of the Stark Law Regarding Physician Self-ReferralsRead the Press Release
HAMMOND - United States Attorney Clifford D. Johnson announced today a settlement of the United States’ claims against Rakesh Kansal, M.D., age 70, for submitting claims to Medicare for patients he referred for cardiovascular stress testing at a testing facility in which he had an ownership interest. Dr. Kansal has agreed to pay $310,000 to the United States to settle the United States’ claim that he violated the False Claims Act by knowingly submitting claims to Medicare in violation of the Stark Law.
The Stark Law provides that the government will not pay for designated health services if such services were furnished by an entity that had a financial relationship with the referring physician because such financial relationships can cause overutilization of those services and compromise the physician’s professional judgment. The cardiovascular stress tests for which Dr. Kansal billed Medicare are designated health services. The False Claims Act prohibits a physician from knowingly submitting claims for payment to Medicare for such services.
The United States alleges that from January 1, 2010, to May 31, 2020, Dr. Kansal submitted claims to Medicare for patients he referred for cardiovascular stress tests to a testing facility where he had an ownership interest, in violation of the False Claims Act and the Stark Law.
“All medical decisions should be based on the best interests of patients and not on the personal financial interests of referring physicians,” said United States Attorney Clifford D. Johnson. “My Office will continue to make it a high priority to avoid overutilization of health care services by enforcing the Stark Law prohibiting physician self-referrals.”
The settlement was reached as a result of an investigation of Dr. Kansal conducted by the United States Attorney’s Office for the Northern District of Indiana. The case was handled by Assistant United States Attorney Dirk D. De Lor.
Second Man Admits Armed Robbery of St. Louis 7-ElevenRead the Press Release
ST. LOUIS – A convicted felon pleaded guilty Monday to three federal felonies and admitted robbing a St. Louis, Missouri 7-Eleven at gunpoint in 2020.
Harvey Cameron, 32, of Ferguson, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to robbery, possession and brandishing of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm.
Cameron admitted that on June 21, 2020, he and Monte Kent drove to the 7-Eleven at 5350 Chippewa Street to rob it. One of the men entered the store and pointed a Zastava AK-47-style rifle at an employee, demanding cash from the register. The pair were caught shortly after the robbery, with the cash and the gun.
Cameron is scheduled to be sentenced October 30.
Judge Fleissig sentenced Kent, now 35, of Jennings, to 10 ½ years in prison in March of 2022 after he pleaded guilty to robbery and the firearm brandishing charge.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI.
Roscoe, Ill. Man Sentenced to Nearly 9 Years in Federal Prison on Firearm and Drug Trafficking ChargesRead the Press Release
ROCKFORD — A Roscoe, Ill. man has been sentenced to nearly nine years in federal prison for trafficking cocaine and fentanyl and possessing a firearm in furtherance of his drug trafficking activities.
XZAVIOR SMITH, 24, pleaded guilty earlier this year to knowingly and intentionally possessing the cocaine and fentanyl with the intent to distribute, and possessing a Glock 19 pistol in furtherance of a drug trafficking crime. U.S. District Judge Iain D. Johnston in Rockford sentenced Smith to eight years and ten months in federal prison.
On June 14, 2021, Freeport Police Department officers attempted to execute a traffic stop on Smith’s vehicle. Smith refused to pull over, then accelerated and ignored traffic signs while fleeing towards Durand, Ill. Shortly thereafter, the Stephenson County Sheriff’s Department attempted to stop Smith on Route 75. Smith did not stop and again accelerated, reaching speeds of up to 113 miles per hour. Eventually, Smith pulled into a private driveway and fled on foot, discarding bags containing cocaine and fentanyl and a loaded Glock pistol with an extended magazine loaded with 29 rounds of ammunition. Smith was located by pursuing members of law enforcement.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Stephenson County Sheriff’s Office, the Freeport Police Department, the Roscoe Police Department, and the Beloit, Wisc., Police Department’s Crime Interdiction Team. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Real Estate Investor Sentenced in $3 million Wire and Bankruptcy Fraud SchemeRead the Press Release
DETROIT - Former real estate investor Sean Tissue, also known as “Sean Ryan,” was sentenced to 78 months’ in prison today arising from his role in perpetrating a $3 million investment and bankruptcy fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement was Acting Special Agent in Charge Devin J. Kowalski of the Detroit Field Office of the Federal Bureau of Investigation (FBI).
In February 2023, Tissue pleaded guilty to one count of Wire Fraud and one count of Withholding Information in a Bankruptcy Proceeding. During the plea hearing, Tissue acknowledged that his scheme cost investors and creditors approximately $3 million.
According to court documents, Tissue orchestrated a substantial real estate investment fraud scheme from approximately 2015 through 2021. Tissue and those working with him made numerous fraudulent representations to potential investors from Israel, India, South Africa, and other countries, trying to convince them to invest in supposed real estate in Michigan, Texas, and other locations. Many victims did invest funds with Tissue and lost those funds in the process. To further the scheme and keep investor money flowing into it, Tissue caused false documents to be provided to investors, including fake deeds, fake wiring instructions, fake bank statements, fake leases, and fake inspection reports. Tissue even provided a fake name to investors (“Sean Ryan”). Tissue converted the $3 million in fraudulently obtained funds to his own personal use.
Tissue also engaged in bankruptcy fraud by knowingly and fraudulently withholding recorded information pertaining to his assets and financial affairs from the Bankruptcy Trustee after filing for Chapter 7 bankruptcy in 2017.
“Sean Tissue lied repeatedly to investors over the course of many years, and his lies continued when he tried to escape his debts by filing for bankruptcy, stated U.S. Attorney Dawn Ison. “Today’s sentence provides substantial punishment for Tissue’s long history of fraud and reflects the serious consequences that await those who abuse our financial and bankruptcy systems.”
“The defendant defrauded his real estate clients and then attempted to escape the consequences by declaring bankruptcy. These actions not only harmed individual clients, but also impacted potential investments in the City of Detroit,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Division. “We would like to thank our partners, including the U.S. Attorney’s Office and Bankruptcy Trustee, for assisting the FBI as we investigate those who knowingly defraud organizations and bring them to justice.”
In addition to his term of incarceration, U.S. District Judge Mark A. Goldsmith also sentenced Tissue to a three-year term of supervised release.
The case was prosecuted by Special Assistant United States Attorney Richard Roble and former Assistant United States Attorney Craig A. Weier. The investigation was conducted by the FBI. Bothe the United States Attorney’s Office and the FBI thank the United States Trustee’s Office for its assistance with this case.
Readout of the Justice Department’s Sexual Abuse Facility Enhancement and ReviewRead the Press Release
Last week, the Justice Department completed its initial deployment of Sexual Abuse Facility Enhancement and Review (SAFER) teams to visit women’s facilities across the Federal Bureau of Prisons (BOP). Following these visits, the Deputy Attorney General has asked the SAFER teams to identify corrective actions and prepare recommendations as part of the Department’s ongoing efforts to root out sexual misconduct within the BOP.
The Deputy Attorney General launched the SAFER team project to visit women’s facilities in each of BOP’s six regions and engage with leadership, staff, and women in custody at those facilities. During each visit, the team reviewed the facility’s progress implementing the recommendations of the Department’s Sexual Misconduct Working Group, including its initiatives to promote timely and effective reporting consistent with the Prison Rape Elimination Act (PREA). The team also reviewed the facility’s conditions, medical and mental health services, reentry programming, and Special Housing Unit, and spoke directly with women in custody. In addition, the teams met with local non-profit organizations that contract with the BOP to provide support services and resources to survivors of sexual abuse.
Principal Associate Deputy Attorney General (PADAG) Marshall Miller led the first SAFER visit on June 9, and over the past six weeks, personnel from the Office of the Deputy Attorney General (ODAG) have led teams to visit the following women’s facilities:
- Federal Correctional Institution (FCI) Tallahassee, a low-security facility in Tallahassee, Florida;
- FCI Waseca, a low-security facility in Waseca, Minnesota;
- FCI Danbury, a low-security facility with an adjacent low-security satellite prison and minimum-security satellite camp in Danbury, Connecticut;
- Federal Detention Center (FDC) SeaTac, an administrative security federal detention center in Seattle;
- Federal Medical Center (FMC) Carswell, an administrative security federal medical center with an adjacent minimum security satellite camp in Fort Worth, Texas; and
- Federal Prison Camp (FPC) Alderson, a minimum-security federal prison camp in Alderson, West Virginia.
In addition to representatives from ODAG and BOP, SAFER teams included officials from across the Department, including the Office of the Attorney General (OAG), the Office of the Associate Attorney General (OASG), the Office for Access to Justice (ATJ), the Civil Rights Division (CRT), the Criminal Division (CRM), Executive Office for U.S. Attorneys (EOUSA), the FBI, the Office of Legal Policy (OLP), Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW). Representatives from U.S. Attorneys’ Offices also joined the SAFER team visits in their respective districts.
Reading Owner of Telemedicine Companies Charged with $44 Million Medicare Fraud SchemeRead the Press Release
BOSTON – The owner of Conclave Media (Conclave) and Nationwide Health Advocates (Nationwide) has been charged and has agreed to plead guilty in connection with a $44 million telemedicine fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces, and genetic tests.
David Santana, 38, has agreed to plead guilty to one count of conspiracy to commit health care fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, between January 2018 and August 2021, Santana, through his companies Conclave and Nationwide, entered into business relationships with telemarketing companies that generated leads by targeting Medicare beneficiaries. The telemarketers then allegedly paid Conclave and Nationwide on a per-order basis to generate orders for DME and genetic testing for these beneficiaries. To arrange for these orders to be signed, Santana allegedly worked with medical staffing companies to find doctors and nurses who were willing to review and sign prepopulated orders, typically without any contact with the beneficiaries. It is alleged that the records falsely portrayed the medical providers as having performed a legitimate examination of the beneficiary. Santana then allegedly provided the signed orders to the telemarketing companies which sold the orders to DME suppliers and laboratories. It is alleged that Santana knew these DME suppliers and laboratories would use the signed orders to submit claims to Medicare for DME and genetic testing that were medically unnecessary, based on false documentation and tainted by kickbacks.
The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, supervised release for up to three years, and a fine of up to $250,000 or twice the gross pecuniary gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Robert Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; Christopher DiMenna, Acting Special Agent in Charge, Federal Bureau of Investigations, Boston Division; Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service, Boston Division; Carol S. Hamilton, Regional Director, Employee Benefits Security Administration, U.S. Department of Labor; and Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigation Service, North East Field Office made the announcement today. Assistant U.S. Attorneys Howard Locker and Lauren Graber of the Health Care Fraud Unit and Alexandra Brazier and Lindsey Ross of the Affirmative Civil Enforcement Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Found Guilty of Sexual AbuseRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted Anthony Red Elk, age 34, of Rapid City, South Dakota, of one count of Aggravated Sexual Abuse and two counts of Sexual Abuse following a three-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on July 21, 2023.
The charges carry a mandatory minimum sentence of 30 years up to a maximum of life in custody and/or a $250,000 fine on each count, a minimum of five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for each count.
Red Elk was indicted by a federal grand jury in November of 2021.
The conviction stems from Red Elk engaging in a sexual act between 2008 and 2010, with a female minor who had not attained the age of 12 years, in Wanblee, on the Pine Ridge Reservation. Red Elk then sexually abused the same female in 2018 and 2019 in Wanblee.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI. Assistant U.S. Attorney Heather Knox prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for September 25, 2023. The defendant was remanded to the custody of the U.S. Marshals Service.
Pickens Man Sentenced to 10 Years in Federal Prison for Child Pornography OffenseRead the Press Release
GREENVILLE, SOUTH CAROLINA —Matthew Leon Arotin, 63, of Pickens, was sentenced to 10 years in federal prison after pleading guilty to possession of child pornography. He was also ordered to pay $68,000 in restitution to the victims whose images he possessed.
Evidence presented to the court showed that deputies with the Pickens County Sheriff’s Office received a cyber tip that child sexual abuse material was uploaded to a Google account. Investigation revealed that the account came back to an IP address associated with Arotin. Pickens County deputies obtained a search warrant for Arotin’s home and learned that he was a registered sex offender based on prior convictions. When confronted by deputies, Arotin admitted he had various electronic devices and deputies would find inappropriate pictures of children on them.
The devices were seized and forensically analyzed. Law enforcement discovered 1,334 still images and 135 videos of child pornography. Fourteen of the images and six of the videos featured sexual abuse of an infant or toddler.
This case was investigated by the Pickens County Sheriff’s Office and the Department of Homeland Security. Assistant United States Attorney Bill Watkins prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Owner of insurance company in Rosebud County charged in scheme to defraud customersRead the Press Release
BILLINGS — A Forsyth woman accused of defrauding customers through her insurance company, Rosebud County Insurance Inc., by spending client payments on personal expenses appeared today on charges, U.S. Attorney Jesse Laslovich said.
Kileen Moria Hagadone, 57, pleaded not guilty to an indictment charging her with six counts of wire fraud and three counts of aggravated identity theft. The maximum penalty for wire fraud is 20 years in prison, $250,000 fine and three years of supervised release. The penalty for aggravated identity theft is a mandatory minimum two years in prison, consecutive to any other punishment, a $250,000 fine and one year of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Hagadone was released pending further proceedings.
The indictment alleges that Hagadone owned and operated Rosebud County Insurance Inc., an insurance brokerage business, and acted as an intermediary between her customers and national insurance companies. Hagadone was required to help negotiate insurance contracts for her customers and then receive and transmit payments as a fiduciary from the customers to the companies for the negotiated policies. Hagadone and her company had a trust account with First State Bank of Forsyth designed to receive these payments.
As alleged in the indictment, from about 2020 until April 2023, Hagadone devised a scheme to receive payments from customers but failed to transmit the funds to the insurance companies. Instead, Hagadone misappropriated the funds and spent the money on personal expenses. In some instances, Hagadone fraudulently withdrew the money for her own use from the company trust account. At other times, Hagadone improperly deposited customer payments into the company’s business account so she could use the money. To help conceal the thefts, Hagadone allegedly stole the identities of several customers by forging their signatures on third-party financing contracts. As a result of the alleged scheme, many customers had their insurance policies canceled without their knowledge and had to repay the insurance companies for policies they had already paid for.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Colin M. Rubich is prosecuting the case. The Montana State Auditor, Commissioner of Securities and Insurance, FBI and Rosebud County Sheriff’s Office conducted the investigation.
PACER case reference. 23-85.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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Oglesby Construction, Inc. Agrees to Pay $942,146.40 to Resolve Allegations of False Claims for Highway Paint StripingRead the Press Release
CLEVELAND – Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio, announced today that Oglesby Construction, Inc., headquartered in Norwalk, Ohio, has agreed to pay the United States $942,146.40 to resolve allegations that it falsified material usage records while performing on federally subsidized contracts to apply paint striping to Ohio roadways between 2012 and 2018.
The allegations arise under the False Claims Act from a whistleblower complaint unsealed on July 19, 2023, and in which the United States intervened on July 14, 2023. The claims asserted against Oglesby are allegations only and there has been no determination of liability.
“The Justice Department is committed to eradicating fraud in all its forms to protect taxpayer dollars,” said U.S. Attorney Lutzko. “We cannot tolerate conduct that bilks the government of funds to support vital government programs.”
The Complaint alleges that Oglesby saved money on highway-striping contracts by failing to use sufficient marking material, including paint, to meet state or contractual minimum standards. Oglesby allegedly use different methods to hide its conduct.
One alleged method involved the manipulation of daily reports, which are required by the State of Ohio to monitor compliance with material usage standards. Contractors like Oglesby must assemble their reports using a tracking software application that obtains usage data from electronic devices on highway marking trucks. Oglesby allegedly embedded a hidden formula in a spreadsheet used by the tracking software, thereby altering data to conceal underapplication of material.
In another alleged scheme, Oglesby engineered a return pipe and pump system that redirected paint disbursed from a truck’s paint gun back to its load of unused paint. According to the Complaint, this would trick the truck’s monitoring device into recording application of paint when, in fact, the return pipe and pump system would intercept and recirculate it.
“This settlement with Oglesby ends a successful, years-long criminal and civil investigation into the company’s practices and sends a powerful message to those who wish to do the same,” said U.S. Attorney Lutzko. “We need to have trust that companies or individuals that receive compensation under federally subsidized contracts do the work required.”
On October 7, 2022, Gerald E. Reichert and his brother, Adam Reichert, two former part-owners of Oglesby, pleaded guilty for their involvement in falsifying paint-striping reports. The court sentenced each to a term of imprisonment and ordered them to pay a combined $579,014.00 in restitution, along with fines. The amount obtained in the civil settlement is in addition to criminal restitution and fines.
New Orleans Men Plead Guilty to Violations of the Federal Controlled Substances and Federal Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – JOHN GUILLORY, III, age 52, JOHN PETRIE, age 39, DEVIN JOHNSON, age 37, and LARRY MOSES, age 22, all residents of New Orleans, Louisiana, pled guilty to violations of the Federal Controlled Substances and Federal Gun Control Acts, announced U.S. Attorney Duane A. Evans. GUILLORY, PETRIE and JOHNSON each pled guilty to superseding bills of information charging them with conspiracy to distribute and possess with intent to distribute quantities of controlled substances, including cocaine hydrochloride, cocaine base (“crack”), marijuana, and fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and 846. GUILLORY also pled guilty to one count of distribution of a quantity of fentanyl and three counts of distribution of crack, all in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). Finally, GUILLORY, PETRIE, and MOSES pled guilty to being felons in possession of firearms in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, between December 2020 and August 2021, a confidential source made four controlled purchases of fentanyl and crack cocaine from GUILLORY. Further investigation revealed that PETRIE was GUILLORY’S narcotics source of supply and JOHNSON was PETRIE’S narcotics source of supply. On June 29, 2022, DEA Special Agents obtained warrants and searched the residences of all four men, seizing quantities of cocaine hydrochloride, crack, marijuana, fentanyl and heroin . Agents also seized a total of six firearms, including a KAHR Model CW9, nine-millimeter caliber pistol, a Taurus Model PT 24/7 Pro C DS, .45 caliber pistol, a Taurus Model PT111 G2, nine-millimeter caliber pistol, a Smith and Wesson Model SW40VE, .40 caliber pistol, an HK Model P30SK, nine-millimeter caliber pistol, and a Sarsilmaz Model SAR9, nine-millimeter handgun from GUILLORY, PETRIE and MOSES’s residences.
For the drug counts, GUILLORY, PETRIE, and JOHNSON each face a maximum term of imprisonment of twenty years, a fine of up to $1,000,000.00, a term of supervised release of at least three years, and a mandatory special assessment fee of $100.00 per count.
For the firearm counts, GUILLORY, PETRIE, and MOSES each face a maximum term of imprisonment of fifteen years, a fine of up to $250,000.00, a term of supervised release of up to three years, and a mandatory special assessment fee of $100.00 per count.
This case was investigated by the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
New Orleans Man Pleads Guilty to Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – On July 20, 2023, PERCY SMITH, age 43, a resident of New Orleans, La., plead guilty to a two-count indictment. Sentencing is set for October 26, 2023, announced U.S. Attorney Duane A. Evans.
SMITH is charged in Count 1 and Count 2 of the indictment with possessing a firearm, as a previously convicted felon, on two separate occasions, June 19, 2021, and June 30, 2021, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). SMITH faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00 per count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
New Orleans Man Indicted for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA -- CHRISTOPHER SHAW, age 35, of New Orleans, Louisiana, was indicted for violating the Federal Gun Control Act by being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1) announced U.S. Attorney Duane A. Evans.
According to the indictment, on January 24, 2023, SHAW was in possession of a Glock, Model 43, 9mm semi-automatic pistol after having been convicted in the Superior Court of California, County of Orange, on the felony charge of conspiring to pimp a prostitute under the age of 16.
If convicted, SHAW faces up to fifteen (15) years imprisonment to be followed by up to three (3) years of supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee. United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.
New Orleans Man Indicted for Theft from Interstate ShipmentRead the Press Release
NEW ORLEANS, LOUISIANA – MALIK MACK, age 26, a resident of New Orleans, Louisiana, was indicted on July 20, 2023 for theft from an interstate shipment, in violation of Title 18, United States Code, Section 659. The indictment alleges that MACK unlawfully stole a Ford F-150 Rapture Crew Cab truck with an approximate total value of $80,625.00. If convicted, MACK faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Norfolk Southern Railway Police, the United States Department of Homeland Security, the New Orleans Police Department, and the Louisiana State Police. The case is being prosecuted by Assistant United States Attorney Troy Bell of the General Crimes Unit.
New Jersey Man Sentenced to 20 Years for Production of Child PornographyRead the Press Release
LEXINGTON, KY- A man residing in Passaic, NJ, Alfredo Bermejo-Martinez, 24, was sentenced by Chief U.S. District Judge Danny Reeves on Monday to 20 years in prison, after pleading guilty to one count of production of child pornography.
According to his plea agreement, in late 2018 or early 2019, Bermejo-Martinez met a victim, residing in the Eastern District of Kentucky, online while playing a video game, and continued contact over a couple of years. In approximately September 2020, he began asking the victim to take and send him sexually explicit pictures via Snapchat.
The plea agreement further explains that Bermejo-Martinez traveled from New Jersey to Kentucky to see her on four separate occasions from February 2021 through May 2022. In April 2022, the victim ended the relationship with him and Bermejo-Martinez threatened to release nude images of the victim. A search of his phone revealed sexually explicit photos and videos of the victim, who Bermejo-Martinez admitted he knew was a minor.
Bermejo-Martinez pleaded guilty in March 2023.
Under federal law, Bermejo-Martinez must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 20 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations - Nashville; and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by HSI and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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New Jersey Man Sentenced for Conspiracy to Transport Illegal Aliens into the United StatesRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on July 24, 2023, Jose Ramon Gonzalez-Resendiz age 41, from New Jersey, was sentenced to 18 months in federal prison for Conspiracy to Transport Illegal Aliens into the United States.
According to court documents, Gonzalez-Resendiz and others partially carried out the smuggling of a group of nationals of Mexico across the United States-Canada border into North Dakota in late March 2023, planning to move them further into the United States in exchange for payment of thousands of dollars per person. The plan fell apart when a pickup truck they were using got stuck in the snow. The pickup had to be towed from the drifted snow and was discovered by Border Patrol agents later at a Langdon, North Dakota, hotel where the smugglers and some of the people they smuggled were staying.
Gonzalez-Resendiz’s two co-defendants, Armando De Dios-Carrillo and Victor Manuel Perez-Aguilera, were sentenced by Judge Welte to 24 months and 18 months, respectively, on July 13, 2023.
This case was investigated by the U.S. Border Patrol, with assistance from U.S. Customs and Border Protection -- Office of Field Operations and Pembina County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Jacob T. Rodenbiker.
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New Jersey Man Sentenced to 46 Months’ Imprisonment for Cocaine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carlos Perez-Rivera, age 37, of West New York, New Jersey, was sentenced on July 20, 2023, by U.S. District Court Judge Malachy E. Mannion, to 46 months’ imprisonment on the charge of possession with intent to distribute cocaine.
According to United States Attorney Gerard M. Karam, Perez-Rivera previously pleaded guilty and admitted to possessing four kilograms of cocaine for further distribution. The charge stems from an incident on March 23, 2022, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lackawanna County in which Perez-Rivera and another individual, Kelvin Vazquez-Pagan, age 24, of Passaic, New Jersey, were traveling. A subsequent search of the vehicle resulted in the seizure of approximately four kilograms of cocaine found hidden inside the vehicle.
Co-defendant Kelvin Vazquez-Pagan is awaiting sentencing.
The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration. Assistant United States Attorneys Robert J. O’Hara and Brian J. Gallagher prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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NASA-JPL Employee Agrees to Plead Guilty to Defrauding COVID-19 Economic Relief Program, Using Some Proceeds to Grow MarijuanaRead the Press Release
LOS ANGELES – A NASA-Jet Propulsion Laboratory (JPL) employee has agreed to plead guilty to defrauding a government-sponsored loan program designed to help people and businesses survive the COVID-19 pandemic’s economic impact and has admitted that he used part of the proceeds to fund illegal marijuana cultivation, the Justice Department announced today.
Armen Hovanesian, 32, of Glendale, a cost-control and budget-planning resource analyst for the JPL, a federally funded research and development center operated by the California Institute of Technology for NASA, agreed to plead guilty to a single-count information charging him with wire fraud. Both the information and a plea agreement were filed Thursday in United States District Court. Hovanesian is expected to make his initial court appearance on August 11.
According to the plea agreement, from June 2020 to October 2020, Hovanesian submitted three loan applications in the names of business entities under his control to the Economic Injury Disaster Loan Program (EIDL), a program administered by the Small Business Administration (SBA) that provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters, including businesses impacted by the COVID-19 pandemic.
Hovanesian admitted to making false and fraudulent statements in the loan applications concerning the gross revenues each of the businesses had generated in the preceding year as well as false and fraudulent statements concerning his intended use of loan proceeds.
Hovanesian certified to the SBA under penalty of perjury that he would “use all the proceeds” of the loans for which he applied and caused others to apply for “solely as working capital to alleviate economic injury caused by disaster” consistent with the terms and limitations of the EIDL program. But Hovanesian instead applied those proceeds toward his own prohibited personal benefit to repay a personal real-estate debt and fund his illegal marijuana cultivation. Hovanesian fraudulently caused the SBA to transfer via interstate wire EIDL proceeds totaling $151,900.
After Hovanesian pleads guilty, he will face a statutory maximum sentence of 20 years in federal prison.
The SBA Office of Inspector General and NASA Office of Inspector General are investigating this matter. The United States Secret Service also provided substantial assistance.
Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section is prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Multiple defendants prosecuted on federal firearms chargesRead the Press Release
SAVANNAH, GA: Four people have been indicted in the Southern District of Georgia on felony charges including illegal firearms possession, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal charges including illegal possession of firearms.
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally carry guns.
“In collaboration with our law enforcement partners, we are committed to the safety and security of our communities,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “Removing guns from the hands of violent criminals and convicted felons makes all of us safer.”
In the past four years, more than 835 defendants have been federally prosecuted in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony. That charge carries a statutory penalty of up to 15 years in prison, and there is no parole in the federal system.
Those indicted during the July term of the U.S. District Court Grand Jury include:
- Marqus Jamal Flanders, 37, of Brunswick, charged with Possession with Intent to Distribute Crack Cocaine, Methamphetamine, Fentanyl, and MDMA; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Jonathan Duncan, 38, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Jaques B. Pope, 31, of Savannah, charged with Possession of a Firearm by a Convicted Felon; and,
- Chester Morgan, 53, of Savannah, charged with Possession of a Firarm by a Convicted Felon.
Defendants recently adjudicated on federal firearms charges include:
- Marshall Lee Cushman, 39, of Augusta, was sentenced to 180 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. A Georgia Bureau of Investigation agent retrieved a rifle from an Avera, Ga., residence in September 2021, and Cushman admitted leaving the gun there. Cushman has multiple prior felony convictions.
- Taipai La’Don Brewer, 43, of Augusta, was sentenced to 37 months in prison and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Brewer in July 2022 after finding a pistol and drugs in his car during a traffic stop as part of the Operation Grace investigation of gang-related crimes in the Augusta area.
- Trevor Elijah Walker, 24, of Augusta, was sentenced to 36 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies were attempting to serve arrest warrants on Walker in November 2019 when he ran away, dropping a pistol as he fled.
- Terrance Webster Dunn, 32, of Augusta, was sentenced to 63 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Dunn was arrested in October 2022 when Richmond County Sheriff’s deputies investigated a report of a man riding a bike in a shopping center parking lot, taking photos of himself while holding a pistol and found Dunn with a pistol in his waistband. Dunn was on federal supervised release at the time of his arrest for a prior conviction for possession of a firearm by a convicted felon.
- Lear A. Williams, 33, of Savannah, was sentenced to 54 months in prison after pleading guilty to Possession of a Firearm and Ammunition by a Convicted Felon. Savannah Police officers in September 2022 were investigating reports of a man selling drugs when they found a pistol and ammunition in Williams’ possession.
- Carl Williams, 52, of Savannah, was sentenced to 31 months in prison and fined $4,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Investigators from the Department of the Army Criminal Investigation Division searched Williams’ residence as part of an investigation into stolen military equipment and found three semiautomatic pistols in Williams’ possession. Williams previously pled guilty and was sentenced in U.S. District Court in Connecticut on a felony charge of Conspiracy to Traffic in Stolen Government Property for receiving and reselling gun sights and night-vision equipment stolen from the U.S. Navy.
- Devonte Malik Jorame, 25, of Aiken, S.C., was sentenced to 28 months in prison followed by three years of supervised release and 40 hours of community service after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Jorame in June 2022 after finding a pistol in his vehicle during a traffic stop as part of Operation Grace. Jorame has prior state criminal convictions for domestic violence and gun possession.
- James Travon Walker, 22, of Savannah, was sentenced to 40 months in prison after pleading guilty to Possession of a Stolen Firearm. Chatham County Police officers arrested Walker while responding to a report of a vehicle break-in and found a backpack belonging to Walker containing two pistols stolen from the vehicle.
- Donald D. Walker, 28, of Hinesville, Ga., was sentenced to 18 months in prison after pleading guilty to False Statement During Attempted Purchase of a Firearm. Walker denied being under indictment when he signed forms required for buying a gun at a Hinesville gun store. Walker’s criminal history includes convictions for assault and family violence.
- Kerry Akeem Milledge, 37, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Milledge was charged in March 2022 by Savannah Police after a traffic stop of a car in which officers found multiple firearms, drugs and cash in the vehicle. Milledge has multiple prior convictions involving guns and drugs. A passenger in the vehicle, Antron Ozier Charles, 19, of Pooler, Ga., was sentenced to five years’ probation after pleading guilty to Possession with Intent to Distribute Marijuana.
- Johnny Harris, 23, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. He was arrested in October 2022 by Savannah Police officers investigating reports of shots fired near Frazier Homes, and determined Harris possessed an assault-style pistol while fleeing the area. Harris previously was convicted of illegal gun possession.
- Danny Swinney, 29, of Buford, Ga., awaits sentencing after pleading guilty to False Statement During Purchase of Firearm. As described in court, Swinney acknowledged acting as a straw purchaser to buy five handguns and shotgun from a Camden County pawn shop. Those guns were recovered days later in New Jersey.
Agencies investigating these cases include the ATF, the FBI, the Georgia Bureau of Investigation, the Savannah Police Department, the Richmond County Sheriff’s Office, and the Georgia State Patrol.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Metairie Man Indicted for Drug and Weapons OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today the unsealing of a four-count indictment returned on July 20, 2023, against ROOSEVELT COCKHERAN, age 39 and a resident of Metairie, Louisiana. COCKHERAN is charged in Count One with conspiracy to possess with intent to distribute cocaine in violation Title 21, United States Code, Section 846, in Count Two with possession with intent to distribute cocaine in violation of Title 21, United States Code, 841(a)(1) & (b)(1)(C), in Count Three with Possession of a Firearm in Furtherance of Drug Trafficking Crime in violation of Title 18, United States Code, Section 924(c) and in Count Four with Felon in Possession of Firearm in violation of Title, 18 United States Code, Section 922(g)(1). The indictment also contains a sentencing enhancement provision which alleges two qualifying prior serious drug felonies.
As to Count One, COCKHERAN faces a term imprisonment of not less than 10 years and a maximum term of life, a fine of $8,000,000 and 8 years of supervised release; as to Count Two, he faces a maximum term of imprisonment of 20 years, a $1,000,000 fine, and three years of supervised release; as to Count Three, he faces a mandatory consecutive term of five years imprisonment up to life imprisonment, a $250,000 fine and three years of supervised release; and as to Count Four, he faces a maximum term of imprisonment of 15 years, a $250,000 fine and three years of supervised release . Each count also carries a mandatory special assessment of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Jefferson Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mark A. Miller is assigned the prosecution.
Member of Violent Chicago Street Gang Sentenced to 50 Years in Federal PrisonRead the Press Release
CHICAGO — A member of a violent Chicago street gang has been sentenced to 50 years in federal prison for participating in a criminal organization that murdered rivals and violently protected a drug-dealing operation on the West Side of Chicago.
As a member of the Wicked Town faction of the Traveling Vice Lords street gang, DAVID ARRINGTON murdered two people, shot and wounded two others, and served as the driver when fellow gang members murdered a man and attempted to murder another. Arrington, 33, of Chicago, pleaded guilty last year to a federal racketeering conspiracy charge. U.S. District Judge Thomas M. Durkin sentenced Arrington after a hearing Wednesday in federal court in Chicago.
Arrington was among 13 defendants convicted as part of a multi-year investigation into the gang’s criminal activities. The investigation resulted in the seizures of more than 45 firearms, approximately 1,000 rounds of ammunition, approximately 17 kilograms of cocaine, approximately seven kilograms of heroin, and approximately 100 grams of crack cocaine. The federal probe revealed that Wicked Town gang members engaged in numerous acts of violence, including Arrington’s two murders and at least 17 others, as well as numerous attempted murders, armed robberies, and assaults. Wicked Town members regularly promoted their violent enterprise on social media, where they taunted rivals and boasted about murders and other acts of violence.
The gang operated primarily in Chicago’s Austin neighborhood, where members maintained “trap houses” to store firearms and illegal narcotics, including cocaine and heroin.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Fred Waller, Interim Superintendent of the Chicago Police Department. Substantial assistance was provided by the FBI, IRS Criminal Investigation Division, Illinois State Police, U.S. Drug Enforcement Administration, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, and the Chicago High Intensity Drug Trafficking Area program (HIDTA). The government is represented by Assistant U.S. Attorneys John D. Mitchell, Jimmy L. Arce, Meghan C. Morrissey, and Beth E. Palmer.
This case is part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against alleged criminal networks.