Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
24 July 2023
Mayfield Man Sentenced to 15 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
Paducah, KY – A Mayfield, Kentucky man was sentenced last week to 15 years in prison for possession with the intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Sheriff Ryan Norman of the McCracken County Sheriff’s Office, and Sheriff Jon Hayden of the Graves County Sheriff’s Office made the announcement.
According to court documents, on February 22, 2022, in Graves County, Kentucky, Deanthony L. Noonan, 37, possessed with the intent to distribute more than 500 grams of a methamphetamine mixture. Noonan was sentenced last week to 15 years in prison, followed by a 5-year term of supervised release, for possession with the intent to distribute more than 500 grams of a methamphetamine mixture. There is no parole in the federal system.
This case was investigated by the DEA Paducah post of duty, the McCracken County Sheriff’s Office, and the Graves County Sheriff’s Office.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
###
Lower Brule Man Convicted of Voluntary ManslaughterRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a jury has convicted Joseph Thompson, Sr., age 32, of Lower Brule, South Dakota, of Voluntary Manslaughter following a three day jury trial in federal district court in Pierre, South Dakota. The verdict was returned on July 20, 2023.
The charges carry a maximum penalty of 15 years in custody and/or a $250,000 fine, three of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Thompson was indicted by a federal grand jury in May of 2023.
The conviction stems from an incident that occurred on March 25, 2023, in Lower Brule. Thompson was at the home of an acquaintance when he heard a disturbance outside the residence. Thompson left the residence, walked around the corner of the home and saw a man standing near the home. Thompson produced a knife and stabbed the man five times, piercing his heart. There was no indication that the other man was displaying a weapon when Thompson fatally stabbed him.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Bureeau of Indian Affairs - Office of Justice Service - Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
The defendant was remanded to the custody of the U.S. Marshals Service.
Los Lunas Man Sentenced to 2 Years for Federal Gun ChargeRead the Press Release
ALBUQERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Diego Fernandez was sentenced to 28 months in prison. Fernandez, 24, of Los Lunas, pled guilty in federal court on March 7, 2022, to being a felon in possession of a firearm and ammunition.
Fernandez was indicted by a federal grand jury on July 15, 2021. According to the plea agreement and other court records, on April 7, 2021, when the New Mexico State Police (NMSP) attempted to execute a traffic stop, Fernandez fled, driving recklessly and towards oncoming traffic. NMSP canceled the pursuit for safety reasons when Fernandez entered a residential neighborhood but continued to monitor his location from a helicopter. When Fernandez parked, officers from NMSP approached him again and were able to apprehend him after a short foot chase.
At the time of his arrest, Fernandez possessed a loaded firearm. As a convicted felon, Fernandez could not legally possess a firearm or ammunition.
Upon his release from prison, Fernandez will be subject to 3 years of supervised release.
The FBI’s Albuquerque Violent Crime and Gang Task Force (VCGTF) investigated this case with assistance from the New Mexico State Police. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
###
23-158
Lexington Man Sentenced to 120 Months for Felon in Possession of Firearm ChargesRead the Press Release
LEXINGTON, KY- A Lexington, Ky., man, Erich Storck, 51, was sentenced by Chief U.S. District Judge Danny Reeves on Friday to 120 months in prison for two counts of felon in possession of a firearm.
Storck was convicted of the charges on April 5, 2023. According to evidence at his trial, Storck had multiple misdemeanor convictions and a felony conviction for Assault Under Extreme Emotional Disturbance. In May 2020, Storck was arrested after being found outside Northpoint Training Center, a medium-security state prison, under the influence of alcohol with a loaded handgun stored in his motorcycle. Storck was released on state bond. While on bond, in November 2021, Storck barricaded himself in his residence in Nicholasville where he discharged over 30 rounds from a 9mm and an assault rifle. Some of the rounds struck a neighbor’s house. After Storck eventually surrendered to law enforcement, officers located two firearms and hundreds of rounds of ammunition in his home.
Under federal law, Storck must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. Storck was also ordered to pay a $20,000 fine and $1,000 in restitution.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Todd Justice, Chief of Police, Nicholasville Police Department; and Sheriff Taylor Bottom, Boyle County Sheriff’s Department, jointly announced the sentence.
The investigation was conducted by ATF, Nicholasville Police Department, and Boyle County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Roger West.
— END —
Lexington CEO Sentenced to 10 Months for Distributing Misbranded 3M N95 masksRead the Press Release
LEXINGTON, KY- Nathan Brown, 47, CEO of Old World Timber, a Lexington company specializing in antique wood reclamation, was sentenced by U.S. District Judge Karen Caldwell on Thursday to 10 months in prison for selling misbranded N95 respirator masks during the COVID-19 pandemic.
In the fall of 2020, during the COVID-19 pandemic, Brown directed his company to begin importing and selling medical-grade 3M™ N95 respirators (masks). Old World Timber purchased more than 100,000 alleged 3M N95 masks from a company in China, and resold them to customers throughout the United States. In his plea agreement, Brown acknowledged that by March 2021, information from multiple sources, including 3M’s COVID-19 Fraud and Counterfeit Product Response Team, alerted him to the high probability that the masks he imported from China were counterfeit. Brown deliberately ignored these concerns and directed his company to continue selling the masks, misleading customers as to their authenticity. Between March 3, 2021 and April 9, 2021, Brown caused OWT to sell 57,460 misbranded masks for a total of $129,353.
Under federal law, Brown must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for one year. Brown was also ordered to pay $129,353 in restitution.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; George A. Scavdis, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations Metro Washington Field Office; and James C. Harris, Special Agent in Charge, Homeland Security Investigations, Baltimore Field Division, jointly announced the sentence.
The investigation was conducted by the U.S. Food and Drug Administration and the U.S. Department of Homeland Security. The United States was represented by Assistant U.S. Attorney Will Moynahan.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
— END —
Lawrence Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man has pleaded guilty in federal court in Boston to his role in a fentanyl trafficking conspiracy.
Eddy Reyes Tejada, 51 pleaded guilty on July 20, 2023 to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; one count of distribution and possession with intent to distribute 40 grams or more of fentanyl; and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for Oct. 19, 2023. Tejada was indicted by a federal grand jury in December 2022.
Between January and December 2022, Tejada conspired to distribute fentanyl in and around the Lawrence area. Specifically, on June 14, 2022, Tejada distributed 40 grams or more of fentanyl in Lawrence. On Sept. 6, 2022, Tejada distributed 400 grams or more of fentanyl in Lawrence.
The charges of conspiracy to distribute 400 grams or more of fentanyl and of distribution of 400 grams or more of fentanyl each provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution and/or possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance in the investigation was provided by the U.S. Postal Inspection Service and the Fitchburg and Lunenburg Police Departments. Assistant U.S. Attorney Alathea Porter of the Narcotics & Money Laundering Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Kenmore Teacher Indicted on Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury returned an indictment charging Anthony V. Giambrone, 40, of Kenmore, NY, with possession of child pornography involving prepubescent minors, which carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that according to the indictment, in April 2020, Giambrone, currently a teacher with Erie 1 BOCES working at Maryvale Intermediate School, possessed images of child pornography on two separate laptop computers. The images included prepubescent minors.
Giambrone made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Justice Department Files Complaint Against the State of Texas for Illegally Placing Floating Buoy Barrier in the Rio GrandeRead the Press Release
The Justice Department today filed a civil complaint against the State of Texas because the state has built a floating barrier, consisting of buoys strung together, in the Rio Grande River without the federal authorization that is legally required under the Rivers and Harbors Act. The complaint seeks to enjoin the building of the barrier and to require the state to remove it.
“We allege that Texas has flouted federal law by installing a barrier in the Rio Grande without obtaining the required federal authorization,” said Associate Attorney General Vanita Gupta. “This floating barrier poses threats to navigation and public safety and presents humanitarian concerns. Additionally, the presence of the floating barrier has prompted diplomatic protests by Mexico and risks damaging U.S. foreign policy.”
“The Rivers and Harbors Act is clear in prohibiting the placement of any unauthorized barriers or obstructions in the Rio Grande and other navigable waters of the United States,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We intend to seek the appropriate legal remedies, including the removal of such obstructions in the Rio Grande.”
“The Rio Grande is a significant stretch of the southern border of our country,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “We must all recognize that there are laws and policies in place – both domestic and international – to ensure the safety and security of everyone working, living and traveling along the river. These laws cannot be ignored, and my office will take and support the appropriate legal action to uphold them.”
The complaint alleges that, beginning earlier this month, Texas directed the placement of a floating barrier – buoys four to six feet in diameter strung together – in the Rio Grande, approximately two miles south of the Camino Real International Bridge in Eagle Pass, Texas. Governor Abbott has said the state may build more barriers as part of a broader effort called “Operation Lone Star,” which also includes placing concertina wire near the U.S.-Mexico border.
The complaint is lodged in U.S. District Court in the Western District of Texas.
The case is being litigated by the Environmental Defense Section of the Justice Department’s Environment and Natural Resources Division.
Inmate at FCI Berlin Indicted for Possessing a WeaponRead the Press Release
CONCORD – An inmate at FCI Berlin was indicted in connection with his possession of a homemade weapon within the prison, U.S. Attorney Jane E. Young announces.
Jawan Fernanders, 21, was indicted on one count of possession of contraband in prison. Fernanders will make an initial appearance in federal court on a later date.
According to the charging documents on May 6, 2023, Fernanders, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, possessed a prohibited object—namely, a homemade knife with a serrated blade.
The charge of possession of contraband in prison provides for a sentence of up to five years in prison, up to one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Federal Bureau of Investigation led the investigation. Valuable assistance was provided by FCI-Berlin’s Office of the Special Investigative Supervisor. Assistant U.S. Attorney Matthew T. Hunter is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
###
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – JUAN JOSE ARRIAGA-MORENO, a/k/a “Jaime Garcia Matamoros,” age 58, was indicted on July 21, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, JUAN JOSE ARRIAGA-MORENO, (“ARRIAGA-MORENO”) reentered the United States after being previously deported on November 9, 2018. If convicted, ARRIAGA-MORENO faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Hannibal Man Admits Making Pipe BombsRead the Press Release
ST. LOUIS – A man from Hannibal, Missouri on Monday admitted making a series of illegal pipe bombs in 2022.
Joshua Eugene Rickey, 34, pleaded guilty in U.S. District Court in St. Louis to one count of manufacture of one or more unregistered destructive devices and one count of possession of one or more unregistered destructive devices. He admitted making a series of pipe bombs out of sparklers and plastic or metal pipes between July 4, 2022 and Aug. 13, 2022. Rickey admitted detonating one in a burned-out house across from his own home in late July 2022. He also lit one at his grandmother’s house, damaging a fence.
Rickey is scheduled to be sentenced by U.S. District Judge John A. Ross on October 30. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine or both.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hannibal Police Department investigated the case. Assistant U.S. Attorney Nino Przulj is prosecuting the case.
Greene County Area Meth Traffickers SentencedRead the Press Release
GREENEVILLE, Tenn. – On July 24, 2023, Steven Shelton, 39, of Greeneville, Tennessee, was sentenced to 168 months’ imprisonment and Shannon Crittenden, 45, of Mosheim, Tennessee was sentenced to 120 months’ imprisonment by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court at Greeneville. Co-defendant Arthur Tidwell, 46, of Greeneville, was previously sentenced to 180 months in prison on June 26, 2023.
As part of the plea agreements filed with the court Shelton and Crittenden both pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine (actual), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. Tidwell plead guilty to possession with the intent to distribute 50 grams or more of methamphetamine (actual), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A).
According to court documents and evidence presented at sentencing, all three defendants were involved in distributing methamphetamine in and around the Greeneville area. Tidwell was traffic stopped in Washington County by the Tennessee Highway Patrol and caught with a significant quantity of methamphetamine, was released on bond, and was then arrested just over a month later in Greeneville with another large quantity of methamphetamine. Shelton and Crittenden sold methamphetamine to an individual working with law enforcement on five occasions, which led to a search warrant being executed at Shelton’s Greeneville residence where a large quantity of methamphetamine was found. The investigation revealed that Tidwell was supplying Shelton with methamphetamine, who was in turn supplying others, including Crittenden.
“The United States Attorney’s Office is committed to targeting the ongoing threat to our communities from drug traffickers who bring large quantities of high-purity methamphetamine into our communities,” said U.S. Attorney Francis M. Hamilton III. “We will continue to work with our law enforcement partners to ensure that those who seek to profit from flooding our communities with dangerous drugs will face justice.”
This sentencing was the culmination of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent convictions in this case, included the Third Judicial Drug Task Force, Greene County Sheriff’s Office, Tennessee Highway Patrol, Greeneville Police Department, Johnson City Police Department, Tennessee Bureau of Investigation, Drug Enforcement Administration, and Federal Bureau of Investigation. Numerous agencies from the Appalachia High Intensity Drug Trafficking Area (HIDTA) Task Force assisted in the investigation.
Assistant U.S. Attorney J. Christian Lampe represented the United States.
###
Fresno Man with Four Prior Convictions for Unlawfully Possessing Firearms and Ammunition Sentenced to 4 Years in Prison for Illegal Possession of AmmunitionRead the Press Release
FRESNO, Calif. — Earnest Donte Ruff, 25, of Fresno, was sentenced to four years and three months in prison for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 21, 2021, Ruff was arrested and found to be in possession of a loaded .40‑caliber gun with no serial number. At the time, Ruff was out on bond pending sentencing in a case in which he had pleaded guilty to participating in a shooting on “the Strip” in Las Vegas. When Ruff possessed the firearm in this case, he was also on community supervision for illegally possessing another firearm in Fresno in 2019. This conviction is Ruff’s fifth conviction for illegally possessing firearms or ammunition.
This case was the product of an investigation by the Federal Bureau of Investigation and the Multi-Agency Gang Enforcement Consortium. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Political Staffer Sentenced to Eight Months’ Home Confinement, Three Years’ Probation, for Role in Scheme to Defraud Campaigns and Political Action CommitteesRead the Press Release
NEWARK, N.J. – A Union County man who previously served as a staff member in the New Jersey Senate was sentenced today to eight months of home confinement and three years of probation for his role in a conspiracy to falsely inflate the invoices that a political consultant submitted to various campaigns, political action committees, and IRS 501(c)(4) organizations, U.S. Attorney Philip R. Sellinger announced.
Antonio Teixeira, 44, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2014 to 2018, Teixeira conspired with Sean Caddle, and Caddle’s political consulting firms, to defraud various campaigns, political action committees, and 501(c)(4) organizations. Teixeira then failed to report this illicit income on tax forms that he filed with the IRS during those same years.
Caddle was hired by a former New Jersey state senator to create the PACs and 501(c)(4)s so that they could raise and spend money to advocate on a variety of issues, including supporting particular candidates in local races around New Jersey. Teixeira served as the senator’s chief of staff and wielded influence over the consultants that the campaigns and organizations hired and the budgets that each of these organizations would receive.
Teixeira and Caddle conspired to falsely inflate the invoices that Caddle’s consulting firms submitted to the campaigns, PACs and 501(c)(4)s with phony campaign-related expenditures. Caddle and Teixeira were fraudulently padding the invoices because they agreed to split the difference between Caddle’s actual campaign expenditures and the overage charged to the organizations. Caddle paid a portion of Teixeira’s share to him in cash and funneled the remainder to Teixeira via checks made to out to Teixeira’s relatives in order to conceal that campaign money was being kicked back to Teixeira. In total, Teixeira received more than $100,000. Although Teixeira pocketed these fraudulent proceeds and used the money for personal expenses, he never reported the money on the tax forms that he filed with the IRS during the course of the scheme.
In addition to the prison term, Judge Vazquez ordered Teixeira to pay restitution.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s sentencing.
The government is represented by Executive Assistant U.S. Attorney Lee M. Cortes Jr., Sean Farrell, Chief, New York Office, Department of Justice, Antitrust Division.
Former Louisiana Resident Pleads Guilty to Cares Act Fraud and Sentenced to ProbationRead the Press Release
NEW ORLEANS – BRANDI WEBER, age 28, formerly of New Orleans, LA and now residing in California, pleaded guilty to one-count of making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), announced U.S. Attorney Duane A. Evans. WEBER was sentenced by U.S. District Judge Wendy Vitter to two (2) years’ probation. In addition, WEBER was ordered to pay $29,177.50 in restitution to the SBA and a $100 mandatory special assessment fee.
On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
According to court documents, WEBER made false statements to an approved lender on or about April 2, 2021, for the purpose of fraudulently obtaining a PPP loan. WEBER falsely stated in her PPP application that she was a self-employed esthetician impacted by the pandemic when, in truth, she had no such business in 2020.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the Amtrak Office of Inspector General – Criminal Investigations in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Felon Accused of Robbing Pizza Delivery Driver in St. LouisRead the Press Release
ST. LOUIS – A convicted felon has been arrested on an indictment alleging he robbed a pizza delivery driver in St. Louis at gunpoint, U.S. Attorney Sayler A. Fleming announced Monday.
Antione L. Shockley, 25, was indicted in U.S. District Court July 19 on three charges: brandishing a firearm in furtherance of a crime of violence, robbery and possession of a firearm as a convicted felon. The indictment alleges that Shockley, a convicted felon, committed the robbery April 13 in St. Louis.
A motion seeking to have Shockley held in jail until trial says a Domino’s driver was sent to a vacant home in the Central West End neighborhood of St. Louis and was robbed at gunpoint of two pizzas, hot wings and the insulated bag containing them. Investigators traced the order to Shockley’s email address and traced the phone used to make the order to Shockley and his then-girlfriend.
The detention motion says St. Louis Metropolitan Police Department officers arrested Shockley June 24 after he fired a handgun into the air in a school zone. After officers arrived and told Shockley to put up his hands, he passed the handgun he was holding to a woman and first pulled a stolen Ruger from his waistband before pulling a long gun from inside his pants. He was arrested after dropping both of the firearms, the motion says.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Zachary Bluestone is prosecuting the case.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Federal Prison Employee Charged with Accepting Payments from High-Net-Worth InmateRead the Press Release
BOSTON – A Correctional Counselor for the Bureau of Prisons (BOP) assigned to Federal Medical Center Devens (FMC Devens) in Massachusetts has been charged with accepting payments from an inmate under his care, in violation of his duties as a public official. The defendant is also charged with lying to a bank about a loan he received from the inmate’s business associate and forging the associate’s signature to support this false claim.
William S. Tidwell, 49, of Keene, N.H., was charged by Information in federal court in Boston with receipt of payments by a public official in violation of his official duties, making false statements to a bank and identity theft. Tidwell will appear in federal court in Boston at a later date.
According to the charging documents, Tidwell has been employed by the BOP since 2000 and has been working at FMC Devens since 2008. According to BOP’s rules and policies that govern the duties and conduct of its employees, employees may not receive any payments, gifts, or personal favors from inmates, give preferential treatment to any inmate in the performance of their duties, or engage in outside employment that conflicts with their duties.
In approximately 2014, Tidwell began working as a Correctional Counselor at FMC Devens, a position that give him significant levels of contact with, and authority over, inmates. Among other things, Tidwell was responsible for monitoring inmate work assignments, assigning inmate housing assignments, arranging inmate legal calls and coordinating prison visits for inmates. One of the inmates for whom Tidwell served as a Correctional Counselor was Individual 1 – an ultra-high net worth individual who had been convicted on federal charges in another jurisdiction. It is alleged that, starting in approximately 2018, Individual 1 caused a stream of benefits to be paid to Tidwell.
In November 2018, Tidwell supervised Individual 1, who allegedly directed a close friend and business associate (Individual 2) to wire $25,000 to Tidwell’s close family member. Thereafter, starting in 2019, Tidwell and Individual 1 allegedly entered into an agreement pursuant to which Individual 1 would direct thousands of dollars to Tidwell as part of a property management agreement, which used Individual 2 as the conduit through which payments were made to Tidwell. In total, between 2019 and 2020, Tidwell allegedly received over $65,000 in benefits as part of this property management agreement with Individuals 1 and 2. Tidwell’s alleged receipt of payments and his employment relationship with an inmate or a close associate of an inmate violated his official duties as a BOP employee.
Separately, in 2020, it is alleged that Tidwell sought to purchase a home. In connection with seeking financing for the home purchase, Tidwell allegedly received a $50,000 loan from Individual 2. Tidwell also allegedly made multiple false statements to the bank in connection with his loan application, falsely telling the bank that the $50,000 was a gift from his employer. It is further alleged that when the bank asked for written proof of this purported gift, Tidwell forged documents to support his earlier claim, including by unlawfully using Individual 2’s name and address, and forging Individual 2’s signature.
“Corrections officers are placed in a position of public trust. The vast majority of corrections officers carry out their duties with integrity and professionalism. They know that accepting payments from an inmate – as is alleged against Mr. Tidwell here – is a serious violation of that trust and a betrayal of the BOP’s mission to care FOR federal inmates in a safe and impartial manner. This office is committed to holding public officials accountable when they exploit their power or official position to enrich themselves and compromise the public interest,” said Acting United States Attorney Joshua S. Levy.
“William Tidwell is alleged to have abused his authority and abandoned his duty after he befriended an inmate in his care and accepted tens of thousands of dollars from him,” said Christopher DiMenna. Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s arrest underscores the importance the criminal justice system places on policing its own. Make no mistake, the FBI will continue to work with our partners to root out public corruption wherever it may lie because it not only undermines the integrity of our government but is a violation of the public’s trust.”
“The safety and security of federal prisons depends on the integrity of Correctional Officers. By allegedly accepting tens of thousands of dollars from an inmate, Tidwell compromised his integrity and jeopardized the safety and security of the institution,” said Ryan T. Geach, Special Agent in Charge of the Department of Justice Office of the Inspector General New York Field Office.
The charge of receiving payments in violation of official duties provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of making false statements to a bank provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of up to $1 million. The charge of identity theft provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FBI Acting SAC DiMenna and DOJ-OIG SAC Geach made the announcement today. Valuable assistance in the investigation was provided by the Federal Bureau of Prisons. Assistant U.S. Attorneys Kunal Pasricha and Mark Grady of the Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts El Salvador Man for Conspiracy to Distribute Fentanyl and Possession with Intent to Distribute FentanylRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal jury has convicted Edwin Giovanni Salinas, age 44, of El Salvador, of Conspiracy to Distribute a Controlled Substance (Fentanyl) and Possession with Intent to Distribute a Controlled Substance (Fentanyl) following a three-day jury trial in federal district court in Aberdeen, South Dakota. The verdict was returned on July 19, 2023.
Each charge carries a mandatory minimum of 10 years and a maximum penalty of up to life in custody and/or a $10 million fine, five years to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Salinas was indicted by a federal grand jury in May of 2023.
On November 26, 2022, Salinas, along with his co-defendant, Berta Rosmelvi Gonzales, were pulled over during a traffic stop in northeast South Dakota. During a search of the vehicle, nearly 16 pounds of a mixture and substance containing fentanyl, a Schedule II controlled substance, was located. The search revealed 12 packages – two containing powder weighing over 3.5 pounds and 10 containing pills, totaling approximately 50,000. Gonzales entered a guilty plea to Conspiracy to Distribute a Controlled Substance on July 20, 2023.
This case was investigated by the Sisseton-Wahpeton Oyate Tribe Law Enforcement, the Roberts County Sheriff’s Department, and the Bureau of Indian Affairs Office of Justice Services Dangerous Drug Enforcement Unit.
Assistant U.S. Attorney Jeremy R. Jehangiri and Special Assistant U.S. Attorney Paige Petersen prosecuted the case.
A presentence investigation was ordered and a sentencing date has been set for October 23, 2023. The defendant was remanded to the custody of the U.S. Marshals Service.
Federal Inmate Sentenced to 45 Months’ Imprisonment for Assault with A Dangerous WeaponRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Richard Anthony Trent, age 44, a federal prison inmate, was sentenced on July 20, 2023, by United States District Judge Malachy E. Mannion to 45 months’ imprisonment for the offense of assault with a dangerous weapon.
According to United States Attorney Gerard M. Karam, on May 17, 2022, while an inmate at United States Penitentiary, Canaan (USP Canaan), in Wayne County, Pennsylvania, Trent assaulted another inmate with a dangerous weapon, namely, a 7-inch grey metal weapon or “shank,” by repeatedly stabbing down on the victim-inmate, who was seated in a prison common area.
Judge Mannion also ordered Trent’s 45-month sentence run consecutively to the federal sentence that Trent was already serving at the time of the assault.
The matter was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant U.S. Attorney Jeffery St John.
# # #
Federal Grand Jury Charges Three in Molotov Cocktail Attack Last Year on Planned Parenthood ClinicRead the Press Release
Two California men now named in a four-count federal grand jury indictment were arraigned earlier today on charges alleging they conducted a firebombing attack on a Planned Parenthood clinic in Orange County in March 2022.
The two defendants arraigned today are Chance Brannon, 23, of San Juan Capistrano, an active-duty Marine stationed at Camp Pendleton, and Tibet Ergul, 21, of Irvine.
A third defendant now charged in this case – Xavier Batten, 21, of Brooksville, Florida – was arrested Friday by special agents with the FBI. Batten made his initial appearance on Friday in the Middle District of Florida. He was ordered held without bond pending trial.
The indictment, returned on July 14 and unsealed Friday, charges all three defendants with one count of conspiracy and one count of malicious destruction of property by fire and explosion. Additionally, Brannon and Ergul both are charged with one count of possession of an unregistered destructive device and one misdemeanor count of intentional damage to a reproductive health services facility, which is a violation of the Freedom of Access to Clinic Entrances (FACE) Act.
According to the indictment, in February and March of 2022, the defendants plotted to throw a Molotov cocktail at the Planned Parenthood clinic in Costa Mesa. Brannon and Ergul allegedly chose the target property, obtained the materials necessary to construct a Molotov cocktail, assembled the destructive device, then, during the early morning hours of March 13, 2022, threw the ignited Molotov cocktail at the clinic. The device struck the clinic entrance.
Batten allegedly advised and directed Brannon regarding how to build the Molotov cocktail.
As a result of the fire, the Planned Parenthood Costa Mesa health care clinic was forced to close the following morning and cancel approximately 30 appointments.
Security videos described in court documents show that two men wearing hooded sweatshirts and face masks approached the Planned Parenthood facility at approximately 1 a.m. the day of the attack, ignited a device, and threw the flaming device at the front door of the building. According to court documents, “The device landed against a southern wall next to the glass door and erupted into a fire, which spread up the wall and across the ceiling above the glass door.”
The Costa Mesa Police Department and Fire Department responded to the scene and extinguished the fire. An analysis of evidence collected at the scene showed that the glass container and other materials contained gasoline.
The conspiracy and malicious destruction counts each carry a mandatory minimum of five years in prison and a statutory maximum penalty of 20 years in federal prison. The count of possession of an unregistered destructive device is punishable by up to 10 years. The intentional damage to a reproductive health facility charge carries a statutory maximum penalty of one year in federal prison.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Martin Estrada for the Central District of California, Assistant Director Robert R. Wells of the FBI Counterterrorism Division and Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office made the announcement.
The FBI and the Naval Criminal Investigative Service are conducting the ongoing investigation in this matter. The Costa Mesa Police Department provided substantial assistance.
Assistant U.S. Attorney Kathrynne N. Seiden for the Central District of California is prosecuting this case, with valuable assistance provided by the Justice Department’s National Security Division.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Grand Jury Charges 3 in Molotov Cocktail Attack Last Year on Planned Parenthood Clinic in Orange CountyRead the Press Release
SANTA ANA, California – Two defendants now named in a four-count federal grand jury indictment are scheduled to be arraigned this morning on charges alleging they conducted a firebombing attack on a Planned Parenthood clinic in Orange County in March 2022.
The two defendants set for arraignment today are Chance Brannon, 23, of San Juan Capistrano, an active duty Marine stationed at Camp Pendleton, and Tibet Ergul, 21, of Irvine.
A third defendant now charged in this case – Xavier Batten, 21, of Brooksville, Florida – was arrested Friday by special agents with the FBI. Batten made his initial appearance on Friday in United States District Court in the Middle District of Florida. He was ordered held without bond pending trial.
The indictment returned on July 14 and unsealed Friday charges all three defendants with one count of conspiracy and one count of malicious destruction of property by fire and explosion. Additionally, Brannon and Ergul both are charged with one count of possession of an unregistered destructive device and one misdemeanor count of intentional damage to a reproductive health services facility, which is a violation of the Freedom of Access to Clinic Entrances Act.
“The violent and reckless attack on a Planned Parenthood clinic alleged in the indictment is intolerable,” said United States Attorney Martin Estrada. “This indictment shows that federal law enforcement will work diligently to uncover and hold accountable those who plan and carry out violent extremist acts against others.”
“Those who deliberately put lives at risk and damage property by launching improvised explosive devices into public facilities will be sought and will be held accountable, as this case makes clear,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Anyone with information about the planning of violent attacks on public facilities – or the targeting of individuals – should immediately contact law enforcement in order to potentially prevent an act of violence that could prove deadly.”
According to the indictment, in February and March of 2022, the defendants plotted to throw a Molotov cocktail at the Planned Parenthood clinic in Costa Mesa. Brannon and Ergul allegedly chose the target property, obtained the materials necessary to construct a Molotov cocktail, assembled the destructive device, then, during the early morning hours of March 13, 2022, threw the ignited Molotov cocktail at the clinic. The device struck the clinic entrance.
Batten allegedly advised and directed Brannon regarding how to build the Molotov cocktail.
As a result of the fire, the Planned Parenthood Costa Mesa healthcare clinic was forced to close the following morning and cancel approximately 30 appointments.
Security videos described in court documents show that two men wearing hooded sweatshirts and face masks approached the Planned Parenthood facility at approximately 1 a.m. the day of the attack, ignited a device, and threw the flaming device at the front door of the building. “The device landed against a southern wall next to the glass door and erupted into a fire, which spread up the wall and across the ceiling above the glass door,” according to court documents.
The Costa Mesa Police Department and Fire Department responded to the scene and extinguished the fire. An analysis of evidence collected at the scene showed that the glass container and other materials contained gasoline.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The conspiracy and malicious destruction counts each carry a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years in federal prison. The count of possession of an unregistered destructive device is punishable by up to 10 years in federal prison. The intentional damage to a reproductive health facility charge carries a statutory maximum sentence of one year in federal prison.
The FBI and the Naval Criminal Investigative Service are conducting the ongoing investigation in this matter. The Costa Mesa Police Department provided substantial assistance.
Assistant United States Attorney Kathrynne N. Seiden of the Terrorism and Export Crimes Section is prosecuting this case.
East Moline, Illinois, Man Convicted of Drug Trafficking and Firearms ChargesRead the Press Release
PEORIA, Ill. – An East Moline, Illinois, man, Marcus Dixon, 29, was sentenced on July 18, 2023, to 260 months in prison, to be followed by three years of supervised release, following his conviction for possession with intent to distribute cocaine base and marijuana, possession with intent to distribute marijuana, two counts of possession of a firearm by a felon, and two counts of possession of a firearm in furtherance of a drug trafficking crime.
Dixon was convicted following a jury trial in March 2023 in front of Chief United States District Judge Sara Darrow. During that trial, the government presented evidence establishing that on October 20, 2019, Dixon fled from a car crash at the intersection of Seventeenth Street and First Avenue in Rock Island, Illinois. Officers searched the car and found a photograph of Dixon, three loaded firearms, and several bags of crack cocaine and marijuana. Additionally, Dixon’s DNA was later found on a deployed airbag. At the time of the crash, Dixon was on supervised release in connection with a prior federal offense.
On December 18, 2019, Dixon’s federal probation officer filed a petition for revocation and obtained a search warrant for Dixon’s home in relation to the October 20th incident. Probation officers searched Dixon’s residence in East Moline, Illinois and located a gun storage box for a firearm that had the same serial number as a firearm located in the crashed car. Additional evidence obtained during the search, including Dixon’s cell phone and a set of car keys, was indicative of drug dealing and led probation officers to a second address in Silvis, Illinois, and a white Audi that was apparently used by Dixon. Inside the Audi, probation officers found two vacuum sealed bags of marijuana and two firearms. Dixon’s fingerprints were later found on one of the bags of marijuana.
The statutory penalty for possession with intent to distribute cocaine base and marijuana under is up to 20 years imprisonment; for possession of a firearm as a felon it is up to ten years’ imprisonment (based on the penalties in place at the time of the offense conduct); for possession of a firearm in furtherance of a drug trafficking crime it is five years to life imprisonment; and for possession with intent to distribute marijuana it is up to five years’ imprisonment.
The case investigation was conducted by the Illinois State Police; the Rock Island Police Department; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Matthew Weir and Timothy Sullivan represented the government in the prosecution.
Drug Courier Sentenced to 37 Months in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ARMANDO VARELA-PLAZA, 41, a citizen of Mexico last residing in Queens, New York, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment for his role in a drug trafficking ring.
According to court documents and statements made in court, this matter stems from a DEA New Haven Task Force and Waterbury Police Department-led investigation into drug trafficking in and around the city of Waterbury. The investigation, which included court-authorized wiretaps on multiple phones, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs and cash proceeds, revealed that Jose Duprey, also known as “Red” and “Colorado,” trafficked kilogram-quantities of cocaine, heroin, and fentanyl. Duprey used his place of employment to supply narcotics to other drug distributors, and he used his girlfriend’s business, located on Straits Turnpike in Middlebury, to store narcotics and other items.
Varela-Plaza was a courier for Duprey’s drug supplier. On February 23, 2022, Varela-Plaza called Duprey and arranged to pick up and transport a large quantity of cash proceeds from Duprey. Later that day, after investigators observed Varela-Plaza meeting with Duprey, they stopped Varela-Plaza’s car and seized $88,000 in cash.
Varela-Plaza, Duprey, and 12 other individuals identified during this investigation were arrested on May 25, 2022. On that date, a search of Duprey’s Waterbury residence and his Middlebury stash location revealed approximately 10 kilograms of cocaine, two kilograms of heroin, two kilograms of fentanyl, and more than $107,000 in cash.
Varela-Plaza has been detained since his arrest. On April 25, 2023, he pleaded guilty to one count of conspiracy to distribute controlled substances.
Varela-Plaza faces immigration proceedings when he completes his prison term.
Duprey has pleaded guilty and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department, with the assistance of DEA offices in Connecticut, New York and New Jersey; the Federal Bureau of Investigation; Bureau of Alcohol Tobacco, Firearms and Explosives; U.S. Marshals Service; U.S. Postal Inspection Service; Connecticut State Police; Connecticut Department of Correction; Connecticut State Parole; and the Naugatuck, Ansonia, West Haven, Meriden and East Haven Police Departments.
U.S. Attorney Avery thanked the Waterbury State’s Attorney’s Office for its cooperation in the investigation and prosecution of this matter.
The case is being prosecuted by Assistant U.S. Attorneys Brendan J. Keefe and Nathaniel J. Gentile through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Defendant in a Conspiracy to Rob a U.S. Post Office Pleads Guilty to Federal ChargesRead the Press Release
Greenbelt, Maryland – Juan Ramon Ramirez Delgado, age 40, a Honduran national residing in Leesburg, Virginia, pleaded guilty today to federal charges for a commercial robbery conspiracy and for committing an armed robbery of a U.S. Post Office.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, on October 19, 2017, Ramirez Delgado and his co-conspirators, wearing masks and armed with firearms, entered a U.S. Post Office in Brandywine, Maryland, pointed firearms at the employees and demanded money. Ramirez Delgado and his co-conspirators stole cash and a computer tower as well as other miscellaneous items, then ran to a getaway vehicle parked nearby, where another conspirator drove them away.
Ramirez Delgado and the government have agreed that, if the Court accepts the plea agreement, Ramirez Delgado will be sentenced to 10 years in federal prison and will be required to pay restitution in the full amount of the loss. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for October 10, 2023 at 1:30 p.m.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations 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.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service for their work in the investigation and thanked the Federal Bureau of Investigation, the Prince George’s County and Montgomery County Police Departments and the Fairfax County, Virginia Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Leah B. Grossi and William D. Moomau, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
# # #
Cornwall, Ontario Man Sentenced to 24 years in Federal for His Leadership Role in Operating Fentanyl Enterprise from 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 Jason Joey Berry, age 40, Cornwall, Ontario, was sentenced by Chief District Court Judge Peter Welte, to 24 years imprisonment, 5 years supervised release, $200.00 special assessment and $11,048.43 in restitution for his role in ‘Operation Denial’.
Berry was extradited from Canada to the United States on January 6, 2021, with significant assistance from the Justice Department’s Office of International Affairs.
On July 29, 2022, Berry pled guilty to Conspiracy to Distribute and Import Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death. As part of that plea, Berry acknowledged working with Daniel Vivas Ceron in running an international fentanyl and fentanyl analogue distribution operation from inside Drummond Correctional Institution in Drummondville, Quebec. Vivas Ceron is scheduled for sentencing on July 25, 2023, in Fargo.
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.
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.
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.
This case was investigated by U.S. Immigration and Customs Enforcement’s 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 are 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.
# # #
Colombian National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – JEAN PAUL SABOGAL-ANGARITA, age 26, was indicted on July 21, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, JEAN PAUL SABOGAL-ANGARITA, (“SABOGAL-ANGARITA”) reentered the United States after being previously deported on September 21, 2016. If convicted, SABOGAL-ANGARITA faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Clay County Man Pleads Guilty to Aggravated Identity Theft, Fraud, and Tax ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Christopher Leo Daragjati has pleaded guilty to two counts of wire fraud, two counts of aggravated identity theft, and one count of theft of government property, over $1,000. Daragjati faces up to 20 years in federal prison on each wire fraud count, a mandatory minimum penalty of 2 years’ imprisonment for each aggravated identity theft count, up to 10 years in prison on the charge of theft of government property, over $1,000 and payment of restitution to the victims he defrauded. Daragjati appeared in federal court on March 28, 2023, and the court subsequently ordered him detained. He is set for sentencing on October 26, 2023.
According to court documents, Daragjati obtained the personal identifiable information (PII) to include the Social Security number of multiple victims. In July 2022, the Clay County Sheriff’s Office began an investigation into an unknown individual, later identified as Daragjati, using stolen identities to commit fraud. Daragjati opened up commercial lines of credit with Sunbelt Rentals using the PII of victims. After renting thousands of dollars of equipment from Sunbelt Rentals, he pawned or stole the equipment. Daragjati’s actions caused a felony arrest warrant to be issued for an innocent victim. The Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, with assistance from other members of law enforcement, determined that Daragjati fraudulently obtained 26 genuine Florida driver licenses and identification cards.
Homeland Security Investigations also determined that Daragjati, using two fraudulently obtained Florida identification cards, applied for three Paycheck Protection Program (PPP) loans in the identity of two victims. Unsuspecting lenders approved the three loan applications and Daragjati received approximately $150,000 in PPP loan proceeds.
The Internal Revenue Service – Criminal Investigation determined that Daragjati submitted eight fraudulent federal tax returns using the stolen identities of six victims. The IRS approved one such tax refund and Daragjati received a refund of more than $3,000 in the identity of the victim.
This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation, and the Clay County Sheriff’s Office with valuable assistance provided by the Florida Department of Law Enforcement, the Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, and the United States Secret Service Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein. AUSA Mai Tran is handling the asset forfeiture.
Chicago Man Sentenced to Federal Prison for Distributing FentanylRead the Press Release
A man who conspired to distribute fentanyl was sentenced today to more than 10 years in federal prison.
Johnathan Davis, age 30, from Chicago, Illinois, received the prison term after a January 23, 2023 guilty plea to conspiracy to distribute a controlled substance.
Evidence at the plea and sentencing hearings showed that law enforcement utilized a confidential source or undercover officer to conduct a series of controlled buys of purported heroin from Melvin Williams. During the controlled buys, Davis provided Williams with fentanyl which Williams in turn distributed to the confidential source or undercover officer. In late March 2022, Davis distributed an amount of fentanyl to Williams, who in turn distributed it to another person, which caused the person to suffer an overdose and die. Then, in early April 2022, Williams distributed fentanyl he had received from Davis to Justin Jensen, who in turn distributed it to another person, which caused the person to suffer an overdose and crash their car on a highway in Waterloo. On May 26, 2022, law enforcement officers searched a vehicle associated with Davis and located 200.59 grams of fentanyl.
Davis was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Davis was sentenced to 130 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Davis 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 Special Assistant United States Attorney Adam J. Vander Stoep and was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation; the Tri-County Drug Enforcement Task Force consisting of the Waterloo Police Department, Cedar Falls Police Department, Black Hawk County Sheriff’s Department, Evansdale Police Department, Waverly Police Department, Hudson Police Department, La Porte City Police Department, and the Bremer County Sheriff’s Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-02034.
Follow us on Twitter @USAO_NDIA.
Chambersburg Man Convicted of Preparing False Tax ReturnsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Guibbonz Marcellus, age 42, of Chambersburg, Pennsylvania, was convicted, following a four-day jury trial held before United States District Court Judge Jennifer P. Wilson, of 23 counts of aiding and assisting the preparation of false and fraudulent tax returns.
According to United States Attorney Gerard M. Karam, Marcellus operated a tax-preparation business in Chambersburg called M&M Confident Multi Services from 2013 to 2016. In an effort to increase refund amounts and generate business, Marcellus regularly included false numbers on the returns he prepared and filed. The returns falsely claimed, among other things, the federal fuel-tax credit, business losses, and deductions for charitable gifts and unreimbursed employee expenses.
The case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorneys Carlo D. Marchioli and Paul J. Miovas are prosecuting the case.
The maximum penalty under federal law for each count is three years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
# # #
Chalmette Man Indicted for Federal Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – On Friday, July 21, 2023, TYREE KING, age 33, a resident of Chalmette, Louisiana, was charged in Count 1 with for being a felon in possession of a firearm in violation of Title 18 United States Code Sections 922(g)(1) and 924(a)(8). In Count 2, he was charged with possessing a machinegun in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2), announced U.S. Attorney Duane A. Evans.
If convicted of Count 1, KING faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100. If convicted of Count 2, KING 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.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Bernard Parish Sheriff’s Office. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.
California Man Sentenced to Prison for Mailing Methamphetamine to the Metro EastRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District judge sentenced a California man to spend 100 months in federal prison after he admitted to distributing methamphetamine to southern Illinois.
Jewelion Yarbrough, 34, of, Long Beach, California, pleaded guilty to three counts of distribution of methamphetamine. In addition to the prison sentence, Yarbrough will serve three years of supervised release.
“The defendant tried to elude detection by mailing methamphetamine inside of children’s toys and a small appliance box, which could have easily landed in the wrong hands if mistakenly delivered to an incorrect address,” said U.S. Attorney Rachelle Aud Crowe. “I’m grateful to the agents who worked this case and apprehended this criminal.”
“Drug trafficking continues to fuel much of the violent crime that ATF investigates. There is no question that the cooperative efforts of the DEA, Postal Inspection Service and ATF to disrupt this distribution of methamphetamine and bring Mr. Yarbrough to justice, saved lives and likely prevented future drug related violence,” said Bernard Hanse, Special Agent in Charge, Kansas City Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, confidential sources working with ATF identified Yarbrough as a methamphetamine distributor in July 2019. Agents conducted three controlled purchases of methamphetamine from the defendant after communicating with him on social media, in which he mailed three separate packages containing narcotics from California to the Metro East. In total, the packages exceeded 100 grams of methamphetamine.
In the first two packages, Yarbrough disguised the methamphetamine in toys intended for children. In the third package, he disguised the narcotics in a kitchen appliance box. Law enforcement located Yarbrough’s fingerprints on both the drugs and the packaging.
The investigation was conducted by ATF, the Drug Enforcement Administration and the U.S. Postal Inspection Service. Assistant U.S. Attorney John Trippi prosecuted the case.
California Man Sentenced to More Than Four and A Half Years in Prison for Directing $2.6 Million Fraud Scheme from PrisonRead the Press Release
OAKLAND – Ratha Yin was sentenced to 55 months in prison for his part in a conspiracy to commit mail and wire fraud in a scheme to defraud the State of California by filing unemployment claims in the names of other people, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and Department of Labor Office of the Inspector General Special Agent in Charge Quentin Heiden. The sentence was handed down by the Hon. Yvonne Gonzalez Rogers, United States District Judge.
Yin, 36, pleaded guilty to the charges on November 10, 2022. According to his plea agreement, from June of 2020 to at least September of 2021, Yin conspired with Steven Mavromatis, 28, of San Leandro, Calif., and others, including his wife, Amanda Yin, 33, of Indio, Calif., to submit fraudulent claims to the California Employment Development Department (EDD) for unemployment insurance. Ratha Yin admitted that he was an inmate housed in the California State Prison at Centinela in Imperial, Calif., when he devised the scheme. He used the identities of people from whom he did not obtain permission to fraudulently obtain funds being administered as part of the federal Coronavirus Aid, Relief, and Economic Security Act of 2020 (the CARES Act)—a program he has acknowledged was meant to provide unemployment insurance to people who had lost their jobs due to the economic slow-down resulting from the coronavirus pandemic.
CARES Act funds were administered in relation to the presidentially declared national emergency related to the COVID-19 pandemic. Under the program, people were permitted to submit claims for unemployment to EDD online and qualified applicants were able to receive benefits by mail on pre-loaded debit cards. Ratha Yin admitted in his plea agreement that he used at least 136 different individuals’ personally identifiable information to claim EDD funds in their names.
Yin described the scheme in his plea agreement. For example, Yin admitted most of the people whose identities he used were incarcerated at prisons and other facilities throughout the country. Yin admitted he directed Mavromatis to create email addresses for people whose identities he had obtained and then used the email addresses to submit claims to the EDD online system. After receiving acknowledgements from EDD, Yin certified many of the fraudulent unemployment insurance claims and directed Mavromatis to certify other claims, as well. In addition, Yin further directed Marvomatis to rent mailboxes at, among other places, a UPS Store in San Leandro, Calif., to receive the debit cards on which the unemployment benefits were pre-loaded. Mavromatis and at least four other individuals then used the debit cards to withdraw the fraudulently obtained unemployment insurance funds in cash from ATMs. A portion of the fraudulently obtained funds were provided to Yin’ wife who, at Yin’s direction, deposited the cash into various financial accounts, including cryptocurrency wallets, controlled by her or others.
Ratha Yin admitted that he and the others involved in the scheme obtained at least $2,646,221 through the fraud.
On November 2, 2022, a federal grand jury indicted Ratha Yin, Amanda Yin, and Mavromatis, charging each with conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349 and conspiracy to launder proceeds of fraud, in violation of 18 U.S.C. § 1956(h). In addition, Ratha Yin and Mavromatis were charged with an additional three counts of aggravated identity theft, in violation of 18 U.S.C. § 1028(A)(a)(1). On November 10, 2022, Amanda Yin pled guilty to conspiracy to launder proceeds of fraud and Steven Mavromatis pled guilty to conspiracy to commit mail and wire fraud.
In addition to the prison term Judge Gonzalez Rogers also ordered Ratha Yin to serve five years of supervised release, to begin after the prison term. Judge Gonzalez Rogers also sentenced Amanda Yin and Mavromatis for their respective roles in the conspiracy, and scheduled a hearing on October 5, 2023, to determine restitution. Judge Gonzalez Rogers sentenced Amanda Yin to five years’ probation, including eight months of home detention. Judge Gonzalez Rogers sentenced Mavromatis to time served (6 days) and five years of supervised release.
The case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California. This case was investigated by the FBI with assistance from the U.S. Department of Labor-Office of the Inspector General, the California EDD, the California Department of Corrections and Rehabilitation Bay Area Special Service Unit, and the Centinela State Prison Investigative Service’s Unit.
Burmese National Convicted at Trial of Conspiring to Assault Myanmar’s Ambassador to the United NationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction of PHYO HEIN HTUT, a Burmese national, of one count of conspiracy to assault a foreign official in connection with his participation in a plot to assault Myanmar’s Permanent Representative to the United Nations (the “Ambassador”). HTUT was found guilty after an eight-day trial before U.S. District Judge Nelson S. Román and is scheduled to be sentenced on March 14, 2024, before Judge Román.
U.S. Attorney Damian Williams said: “While volunteering on a security team at Myanmar’s Permanent Mission to the United Nations, Phyo Hein Htut betrayed the person he was supposed to be protecting by secretly feeding information about the Ambassador, the Mission, and its personnel to an arms dealer in furtherance of a plot to hurt the Ambassador. The jury’s unanimous verdict holds him to account for his actions.”
According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:
Between in or about February 2021 through at least on or about August 5, 2021, HTUT, a citizen of Myanmar residing in New York, conspired to injure or kill Myanmar’s Permanent Representative to the United Nations. During the conspiracy, HTUT communicated with an arms dealer in Thailand (the “Arms Dealer”) who sells weapons to the Burmese military, which overthrew Myanmar’s civilian government in or about February 2021. In the course of those conversations, HTUT supplied information to the Arms Dealer about the Ambassador, the inner workings of Myanmar’s Permanent Mission to the United Nations, and other Mission personnel. HTUT also accepted money the Arms Dealer sent to him to hire attackers to hurt the Ambassador in an attempt to force the Ambassador to step down from his post.
* * *
HTUT, 29, a Burmese national residing in New York, was convicted of conspiracy to assault a foreign official, which carries a maximum sentence of five years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, the Westchester County Safe Streets Task Force, and the New York City Police Department.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey Coffman and Benjamin Klein, with the assistance of Paralegal Specialist Teresa Leo, are in charge of the prosecution.
Bridgeport Man Sentenced to More Than 5 Years in Federal Prison for Possessing Gun While on Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GIOVANNI CANDELARIO, 30, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 65 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm while on federal supervised release.
According to court documents and statements made in court, in August 2015, Candelario was sentenced in Hartford federal court to 57 months of imprisonment, followed by three years of supervised release, for unlawful possession of a firearm by a felon. In July 2018, Candelario was arrested for criminal firearm possession and other offenses and, in addition to a state sentence, he received 12 months of imprisonment for violating the conditions of his federal supervised release.
On January 9, 2021, while he was still on supervised release, Candelario was arrested by the Connecticut State Police after a car he was driving on Route 8 in the Bridgeport area exceeded 115 miles per hour. Candelario eventually stopped his car near Exit 26 on Interstate 95, and a search of his person revealed a .357 revolver with an obliterated serial number.
Candelario has been detained since his arrest. On March 2, 2023, he pleaded guilty to unlawful possession of a firearm by a felon.
This matter was investigated by the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
23 July 2023
Operation Stop Scam CallsRead the Press Release
WASHINGTON – The Department of Justice (DOJ), Federal Trade Commission (FTC), and Federal Communications Commission (FCC) are cracking down on telemarketing operations responsible for billions of illegal calls to U.S. consumers. The initiative is called “Operation Stop Scam Calls.”
Enforcement actions target individuals and entities who deceptively collect consumers’ telephone numbers and then provide those telephone numbers to robocallers and others (falsely representing that these consumers have consented to receive calls), as well as Voice over Internet Protocol (VoIP) service providers who facilitate tens of billions of illegal robocalls every year. Significant actions have already been taken against individuals and entities who unjustly profited by facilitating the movement of money from scam call victims to fraudsters.
Illegal telephone calls interrupt cherished time with family and friends and, when they are used to commit fraud, can be financially and emotionally devastating.
The DOJ is taking action against those who trick people into phony consent to receive these calls and those who make it easy and cheap to place these calls.
Cases brought by the DOJ range from actions targeting fraudsters who directly contacted victims, to actions targeting those who provided scam call operators with the means to perpetrate their schemes. So far, the DOJ’s actions have contributed to over 180 actions taken by the federal and state partners participating in Operation Stop Scam Calls.
The DOJ and its partners urge consumers to be on the lookout for illegal calls, to take steps to minimize the number of illegal calls received, and to report any scam calls to law enforcement.
- Callers may pressure you to send money by trying to scare you. They may pretend to be someone you know who is in trouble, a government agency, or a major company. These are fraudsters. Hang up.
- Don’t trust your caller ID. It can be faked.
- If you answer the telephone and hear a recorded message instead of a live person, it’s potentially a robocall trying to sell you something. It is probably illegal and likely a scam.
- Only call a telephone number you know is real.
- Make sure your number is on the Do Not Call Registry, www.donotcall.gov, and consider using your telephone’s call blocking options or getting a call blocking app or service.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. To review a list of common transnational elder fraud scams, many facilitated by telephone calls, visit www.justice.gov/civil/consumer-protection-branch/transnational-elder-fraud-strike-force.
21 July 2023
Zachary Northey, 30, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for distributing heroin.Read the Press Release
Acting United States Attorney Susan Lehr announced that Zachary Northey, 30, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for distributing heroin. Senior United States District Judge John M. Gerrard sentenced Northey to 110 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
From November 26, 2018, to January 2, 2019, Northey was distributing heroin in Lincoln. During this time, one of Northey’s customers overdosed twice but was revived through medical intervention. On January 8, 2019, Northey delivered heroin to that same individual, who overdosed on a third occasion and subsequently died.
This case was investigated by the Lincoln Police Department.
Waukon Office Manager Pleads Guilty in Six-Year Embezzlement SchemeRead the Press Release
An office manager who stole over $200,000 from her employer, a Northeast Iowa tax preparation business, pled guilty July 19, 2023, in federal court in Cedar Rapids.
Heather Leigh Migliore, age 51, from Waukon, Iowa, was convicted of one count of wire fraud.
At the plea hearing, and in a plea agreement, Migliore admitted that, from January 2015, through November 2021, she stole no less than $200,000 from her employer, a tax preparation business with offices in Waukon and Decorah, Iowa. Migliore was the business’s office manager and had responsibility for its finances, including making payroll and paying bills. Migliore used a signature stamp of the owner of the business to write and sign checks to herself. To cover up her scheme, Migliore then deleted the checks from the business’s electronic bookkeeping system. Beginning in July 2019, Migliore also made over $20,000 in fraudulent credit card charges on the business’s credit cards. Migliore used the stolen funds to pay her personal expenses.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Migliore remains free on bond. Migliore faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Winneshiek County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-1015.
Follow us on Twitter @USAO_NDIA.
Venezuelan Man Pleads Guilty to Distributing Thousands of Fentanyl PillsRead the Press Release
BOSTON – A Venezuelan man pleaded guilty today in federal court in Boston to trafficking fentanyl.
Frank Bienvenido Perez Diaz, 42, pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Angel Kelley scheduled sentencing for Nov. 15, 2023.
On April 16, 2021, Perez Diaz sold over 2,000 counterfeit fentanyl pills to a cooperating witness.
The charge of distribution and/or possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years in prison and no greater than 40 years in prison, as well as at least four years of supervised release, and a fine of up to $5,000,000. Perez Diaz will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction and the Norfolk Sheriff’s Office. Assistant U.S. Attorney Alathea Porter of the Narcotics & Money Laundering Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney’s Office will announce winner of drug prevention PSA contestRead the Press Release
WHEELING, WEST VIRGINIA – The U.S. Attorney’s Office will be announcing the high school winner of the U.S. Attorney’s Office Drug Prevention Public Service Announcement (PSA) Contest this weekend at the 77th Annual OVAC Rudy Mumley All-Star Football Game.
United States Attorney William Ihlenfeld asked high schools in the Northern District of West Virginia to create a drug-free message to share with students, encouraging them to spread the message of the dangers of drugs to their peers.
The contest was open to all high schools in the 32 counties of the Northern District of West Virginia. Students were encouraged to write, act, and produce in their own television PSA, promoting a drug-free high school.
All videos were judged by a panel of law enforcement partners and public affairs professionals from across the country, including those from other U.S. Attorney’s Offices, the FBI, and the Drug Enforcement Administration. The winner will receive an award from the U.S. Attorney’s Office during the game, and the PSA will be shared on the stadium’s large screen and scoreboard.
The OVAC Rudy Mumley All-Star Football Game is Saturday, July 22 beginning at 7:15 p.m.at Wheeling Island Stadium.
Two Connecticut Men Charged with Using Stolen Identities to Steal VehiclesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned a nine-count indictment charging TYSHON WALKER, 38, of Naugatuck, and ELVIS PEREZ, also known as “Pops,” 58, of Bridgeport, with offenses related to a series of vehicle thefts from dealerships utilizing personal information from identity theft victims.
The indictment was returned on July 11, 2023. Perez was arrested on July 19 and Walker surrendered to law enforcement yesterday. They appeared yesterday before U.S. Magistrate Judge Robert M. Spector in New Haven and entered pleas of not guilty. Perez was ordered detained and Walker was released on a $250,000 bond.
As alleged in the indictment, since at least September 2020, Walker, Perez, and others utilized personal information stolen from residents of Connecticut and other states to apply for vehicle loans at dealerships in Connecticut, New Jersey, Pennsylvania, Delaware, and Rhode Island for motorcycles, an all-terrain vehicle, and other performance vehicles. Once the loan was approved by the dealership using the identity theft victim’s information, Walker would send a series of runners, including Perez, Mark Goff, and Thomas Owen, to pick up the vehicle utilizing a fictitious driver’s license that included the identity theft victim’s information and a photograph of the runner. The vehicle was then transported back to Connecticut for resale on Facebook Marketplace.
The indictment charges Walker and Perez with conspiracy to commit wire fraud and bank fraud, an offense that carries a maximum term of imprisonment of 30 years. Walker is also charged with three counts of wire fraud, which carry a maximum term of imprisonment of 20 years on each count, two counts of aggravated identity theft, which carry a mandatory consecutive term of imprison of two years on each count, and two counts of interstate transportation of stolen vehicles, which carry a maximum term of imprisonment of 10 years on each count. Perez is also charged with one count of aggravated identity theft and one count of interstate transportation of stolen property.
Goff, 48, and Owen, 26, both of Ansonia, previously pleaded guilty to conspiracy and identity theft charges stemming from this scheme and await sentencing.
In a related case, Nuvar Foster, 30, of Waterbury previously pleaded guilty to interstate transportation of stolen vehicle stemming from the fraudulent purchase of a 2020 Harley Davidson motorcycle from a dealership in Warwick, Rhode Island in December 2020. On February 21, 2023, he was sentenced to five years of probation and ordered to pay restitution of $20,000, the amount he received when he resold the motorcycle.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants who are awaiting trial are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation the FBI’s New Haven Safe Streets/Gang Task Force, the Bridgeport Police Department, the Hopkinton (R.I.) Police Department, the Westtown – East Goshen Regional (Pa.) Police Department, and the Washington Township (N.J.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Heather M. Cherry.
Top Source of Supply in Juvenile Fentanyl Case Charged, Thousands of Pills Found Stashed in MicrowaveRead the Press Release
A top source of supply in the Carrollton juvenile fentanyl case – which has resulted in at least 14 juvenile overdoses, four of them fatal – has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Julio Gonzales, Jr., 18, was charged via criminal complaint on July 14 with conspiracy to distribute fentanyl. He was arrested at his residence on Thursday and made his initial appearance before U.S. Magistrate Judge Renee Harris Toliver on Friday morning.
His roommate, 19-year-old Adrian Martinez-Leon, was also arrested Thursday and subsequently charged via criminal complaint with drug conspiracy. He, too, made his initial appearance before Magistrate Judge Toliver on Friday.
During a search of their residence, DEA agents found thousands of fentanyl-laced M-30 pills stuffed in the microwave, a partial kilogram of cocaine tucked in a plastic food storage container, bulk U.S. currency hidden in the closet, and numerous firearms, including a pistol equipped with an illegal Glock switch, littered throughout the home.
“Another domino has fallen in the Carrollton juvenile fentanyl overdose saga,” said U.S. Attorney Leigha Simonton. “Rest assured, the Justice Department will not stop until their entire fentanyl trafficking infrastructure has been dismantled. Our kids’ futures are too important to allow this to continue. “
“These arrests demonstrate the continued resolve of DEA Dallas to investigate this organization to the fullest extent possible,” said DEA Special Agent in Charge Eduardo A. Chávez. “Local street dealers, transporters, bulk suppliers, and anyone in between should know DEA Dallas is still committed to holding everyone in this organization, and others like it, accountable for selling fentanyl to our communities.”
According to the complaint, in February 2023, a 16-year-old dealer who delivered the fentanyl pills that killed a 14-year-old girl in December 2022 allegedly identified Mr. Gonzales, whom he called “J-Money,” as his supplier. In text messages, the child discussed “J-Money” with Eduardo Navarrete, one of the first dealers charged in the scheme. They identified “J-Money” as their “plug,” street parlance for a source of supply.
At least four other cooperating defendants also allegedly identified “J-Money” as their source of supply and tied him to an address in Dallas’ Oak Cliff neighborhood. Three of the cooperating defendants immediately identified a photograph of Mr. Gonzales as the man they knew as “J-Money.” One admitted to agents that the thousands of pills sold during a DEA controlled purchase operation were sourced by Mr. Gonzales. Instagram messages between Mr. Gonzales and the defendants negotiating pill prices and quantities corroborated these accounts.
In June 2023, agents surveilling Mr. Gonzales observed him allegedly conduct a hand-to-hand drug transaction with a subject who then ducked into a nearby alleyway, crushed the pills, and smoked them. They also observed his roommate, Mr. Martinez-Leon, allegedly conduct a hand-to-hand transaction with a subject outside their front door.
Mr. Gonzales and Mr. Martinez-Leon are the ninth and tenth defendants charged in the wake of the Carrollton overdoses, which have claimed the lives of four middle and high school students to date. To date, five have pleaded guilty.
A complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, Mr. Gonzales and Mr. Martinez-Leon will face up to 40 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Office, the Dallas Police Department’s SWAT team, and the Carrollton Police Department conducted the investigation. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
Three Men Found to be Illegally Possessing Firearms Headed to Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that three men who illegally possessed firearms were sentenced today by United States District Judge Elizabeth E. Foote. The three defendants who were sentenced today are as follows:
Christopher Joel Cox, 28, of McLeod, Texas was sentenced to 70 months in prison, followed by 3 years of supervised release for being a prohibited person in possession of firearms. On April 24, 2022, a deputy with the Caddo Parish Sheriff’s Office conducted a traffic stop of a vehicle being driven by Cox. The deputy noticed a pistol laying on the back passenger floorboard and Cox and his passenger gave consent to search the vehicle. During the search, the deputy recovered several loaded firearms from inside the vehicle. After further investigation, law enforcement officers learned that he had an active warrant from Colorado and he was subsequently arrested. Cox was previously convicted of Assault 2-Strangulation-Attempted in Colorado in 2018 and was prohibited from possessing any firearm or ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Caddo Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
Jelantis J. Chatman, 28, and Courvisier U. Glover, 24, both of Shreveport, were each charged with being a convicted felon in possession of a firearm. Chatman was sentenced to 30 months in prison and Glover was sentenced to 32 months in prison. Both men will serve 3 years of supervised release following their release from prison.
The charges stem from a traffic stop which occurred on September 16, 2022. An officer with the Shreveport Police Department stopped the vehicle which was being driven by Chatman and in which Glover was the passenger. During a subsequent search of the vehicle, officers found a loaded Glock pistol with an extended magazine under Chatman’s seat, as well as a loaded Glock pistol under Glover’s seat.
Chatman and Glover each have prior felony convictions and knew that they were prohibited from possessing a firearm or ammunition. Chatman’s prior felony convictions are for simple burglary in 2015, and possession of a firearm by a convicted felon in 2018 in U.S. District Court in the Western District of Louisiana. Glover has an extensive criminal history, including being convicted twice for possession of a firearm by a person convicted of domestic abuse battery, in 2018 and 2020.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Shreveport Police Department and prosecuted by Assistant U.S. Attorney Seth D. Reeg.
These cases are 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.
# # #
Thomasville, Georgia, Resident Convicted in Meth Distribution CaseRead the Press Release
VALDOSTA, Ga. –A Thomasville, Georgia, resident was convicted by a federal jury this week of possessing with intent to distribute a large quantity of methamphetamine.
Ryan Loyd Reeves, 50, was convicted on July 19 of one count of possession with intent to distribute methamphetamine in a one-day trial before U.S. District Judge Hugh Lawson. Reeves faces a minimum mandatory sentence of ten years up to a maximum sentence of life imprisonment to be followed by five years of supervised release and a $10,000,000 fine. Sentencing is scheduled for Nov. 15.
“The U.S. Attorney’s Office is committed to supporting local law enforcement’s efforts to prevent the distribution of the most dangerous illegal drugs into their communities and hold dealers accountable for their crimes,” said U.S. Attorney Peter D. Leary. “We are thankful for the continued partnership between law enforcement at all levels to make our communities safer for all citizens.”
“Poisonous drugs continue to flow into our communities at the expense of too many lives,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “These drug traffickers must now deal with the consequences of their actions.”
According to court documents and evidence presented at trial, officers with the Thomas County/Thomasville Narcotics and Vice Division learned in Oct. 2021 that Reeves and co-defendant, Jennifer McGrotha, 46, of Ochlocknee, Georgia, were regularly working together to transport heroin, fentanyl and crystal methamphetamine from Atlanta to the Thomas County area for distribution. The pair used multiple vehicles during these trips to avoid detection, including vehicles that Reeves was supposed to be repairing for others. During the investigation, law enforcement determined Reeves and McGrotha were headed to Atlanta to obtain drugs; law enforcement initiated a traffic stop once they returned to Thomas County. A K-9 dog alerted on drugs inside the car. A subsequent search of the vehicle recovered 420 grams of methamphetamine intended for distribution into the community. Co-defendant McGrotha pleaded guilty to one count of possession with intent to distribute methamphetamine on May 11. She is scheduled for sentencing on Sept. 20.
The case was investigated by DEA and the Thomas County Sheriff's Office/Thomasville Police Department Narcotics and Vice Division. Criminal Chief Leah McEwen and Assistant U.S. Attorney Melody Ellis are prosecuting the case for the Government.
Suburban Chicago Doctor and His Surgical Center to Pay More Than $750,000 to Settle False Claims Act SuitRead the Press Release
CHICAGO — A suburban Chicago doctor and his surgical center will pay more than $750,000 to the United States to settle a civil lawsuit accusing them of submitting fraudulent claims to Medicare and a federal employee health program.
The suit in U.S. District Court in Chicago alleged that JOHN A. GREAGER, II and CANCER THERAPY ASSOCIATES, S.C. violated the False Claims Act by performing multiple mole removal procedures on patients on a single date but submitting or causing the submission of claims to Medicare and the Federal Employees Health Benefits Program (FEHBP) that made it appear as though the procedures had been performed on multiple dates. Through this practice, known as “unbundling,” Greager and CTA caused Medicare and the FEHBP to pay more than they would have paid if the procedures had been billed as having occurred at the same visit.
As part of a settlement agreement approved this week by U.S. District Chief Judge Rebecca R. Pallmeyer, Greager and CTA agreed to pay $757,879.90 to the United States. The settlement resolves a civil lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery. The United States intervened in the lawsuit prior to the settlement.
The settlement was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Conrad J. Quarles, Deputy Assistant Inspector General for Investigations of the U.S. Office of Personnel Management Office of the Inspector General. The government was represented by Assistant U.S. Attorney Virginia Hancock.
A separate criminal prosecution of Greager resulted in a 6-month prison sentence and a fine of $1 million.
U.S. v. Greager et al settlement agreementSt. Louis County Man Sentenced for Multiple FraudsRead the Press Release
ST. LOUIS – U.S. District Stephen R. Clark on Thursday sentenced a man from St. Louis County, Missouri to 15 months in prison and ordered him to repay $47,397 he’d stolen via two fraud schemes.
Dominique Lowery, 32, is the third person involved in multiple, connected frauds to be sentenced in the case.
In April, Judge Clark sentenced Christopher Tatum, 37, of St. Louis County, to 51 months in prison and ordered him to repay $103,481. In January, Monique Howard, 39, of St. Louis, was sentenced to four years of probation and ordered to repay $115,267.
Each admitted participating in bank fraud, a scheme to defraud a pandemic loan program, or both.
In March of 2019, Tatum, through his business, Final Lap Auto Center LLC, claimed to be offering to sell a 2014 Audi Q7 to Lowery and Howard. Lowery and Howard knew that Tatum didn’t own the vehicle, but applied for and received motor vehicle loans from credit unions. Tatum provided lenders a counterfeit motor vehicle title, with a forged signature of the director of the Missouri Department of Revenue, and fraudulent buyer’s orders.
Howard received a $18,600 loan from St. Louis Community Credit Union and a $18,540 loan from First Financial Federal Credit Union. Lowery received a $26,500 loan from Scott Credit Union. Lowery and Howard knew that the loans would not be secured with the Audi and knew they would not be repaying the loan and interest as promised. In exchange for their participation, Tatum paid both Lowery and Howard kickbacks from the proceeds of the illegal loans.
Howard also received two fraudulent loans for a 2015 Maserati. She made no payments and the car was eventually repossessed, creating a total loss of $74,000.
On April 26, 2021, Lowery submitted a fraudulent application for a Paycheck Protection Program loan, a pandemic-era program intended to help save jobs. Lowery falsely claimed that he operated a sole proprietorship that generated gross income of $104,196 in 2019. Lowery received $20,833. The loan was forgiven after Lowery falsely claimed that he used $17,389 of the illegally obtained loan proceeds on payroll costs. He actually used it for personal expenses.
On March 30, 2021, Tatum submitted a PPP loan application falsely claiming to be an independent contractor and lying about his business income. He received a total of $39,778.
Lowery pleaded guilty in March to two felonies: conspiracy to commit bank fraud and access device fraud. Tatum pleaded guilty to four: conspiracy to commit bank fraud and three counts of bank fraud. Howard pleaded guilty to the conspiracy charge, bank fraud and mail fraud.
The case was investigated by the U.S. Postal Inspection Service and the Missouri Department of Revenue. Assistant U.S. Attorney Tracy Berry prosecuted the case.
St. Louis County Man Admits Three Pandemic-Related FraudsRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Friday pleaded guilty to federal charges and admitted fraudulently receiving more than $42,000 from two pandemic loans and unemployment compensation that included more pandemic funds.
Charles Carbon III, 37, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to two felonies: bank fraud and wire fraud.
On June 26, 2020, Carbon applied for and received a $10,000 Economic Injury Disaster Loan, which was supposed to help business owners struggling with pandemic-related business losses. In his plea agreement, he admitted lying about the existence and purpose of a business he claimed to own, as well as the payroll, revenue and number of employees.
On Aug. 6, 2020 Carbon fraudulently applied for a Paycheck Protection Program loan, again lying about the existence, purpose and finances of a business. Carbon received a $18,800 loan, which was supposed to be used for business owners to save jobs during the pandemic.
Carbon then falsely claimed to be a self-employed event planner who did not have any work between March and August of 2020, and received $14,174.80 in unemployment benefits. That included $300 per week in Federal Pandemic Unemployment Compensation. In paperwork, Carbon lied about work he did in March and omitted the pandemic loans that he’d received, his plea says.
As part of his plea, Carbon also admitted using four forged checks totaling $12,322.
The bank fraud charge is punishable by up to 30 years in prison, a $1 million fine or both. The wire fraud charge carries a potential punishment of up to 20 years in prison, a $250,000 fine or both.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Gwendolyn Carroll is prosecuting the case.
Springfield, Illinois, Man Sentenced to 12 Months and One Day in Prison for Defrauding the Paycheck Protection ProgramRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Alex Jennings, 40 formerly of Lincoln, Illinois, was sentenced on July 20, 2023, to 12 months and one day in the federal Bureau of Prisons, to be followed by a three year term of supervised release, following his conviction for wire fraud. Jennings was further ordered to pay $46,666 in restitution.
At the sentencing hearing in front of Senior U.S. District Judge Sue E. Myerscough, the government presented evidence that Jennings defrauded the Small Business Administration and a private lender into providing him with two Paycheck Protection Program loans for which he did not qualify. Jennings instead spent the money to purchase two cars for himself.
Also at the hearing, Judge Myerscough noted that fraud by Jennings and others like him caused legitimate businesses to miss out on the aid they so desperately needed during a global pandemic. Judge Myerscough found that the defendant had defrauded the federal government and lender of over $40,000.
Jennings had previously pleaded guilty to the four counts of wire fraud in February 2023.
The statutory penalties for wire fraud count are up to 20 years’ imprisonment and up to a $250,000 fine, to be followed by up to three years of supervised release.
“The Paycheck Protection Program was supposed to help businesses stay open and keep workers employed during a global emergency,” said U.S. Attorney Gregory K. Harris. “However, many people instead applied for this money illegally. This office will continue its efforts to hold accountable those criminal opportunists who sought to take advantage of a worldwide pandemic for their own personal gain.”
“The U.S. Secret Service remains committed to identifying, investigating, and pursuing those who defraud the PPP and EDIL programs, which were designed to assist employers severely impacted by the COVID-19 pandemic,” said Stephen S. Webster, United States Secret Service Resident Agent in Charge, Springfield Resident Office. “Programs such as these were established to help those in need, not benefit fraudsters. We are proud of our partnerships with the federal, state, and local agencies who work collectively to hold these individuals accountable for their actions.”
The United States Secret Service investigated the case, with assistance from the Springfield Police Department. Assistant U.S. Attorney Sarah E. Seberger represented the government in the prosecution.
COVID-19 disaster relief benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect that anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud.
Spokane Man Sentenced to 18 Years for Production of Child PornographyRead the Press Release
Spokane – On July 20, 2023, U.S. District Judge Thomas O. Rice sentenced Dannie Paul Bowling, 42, of Spokane, Washington, to 216 months in federal prison for Production of Child Pornography. Bowling pleaded guilty on January 18, 2023. Judge Rice ordered Bowling to pay $6,000 in victim-related special assessments and be federally supervised for life after Bowling is released from prison.
According to court documents and proceedings, Bowling was on supervised release in a drug trafficking case when he exploited a 15-year old child by secretly filming her in various stages of undressing. Bowling also paid for nude photographs of minor victim, and used her to produce a video of her engaging in sex acts with Bowling. Bowling told the minor victim that he could sell her images to other people and paid her varying amounts between $80 and $1,000. At times he even had the minor victim hold a sign with the buyer’s name to prove she was real. Hidden surveillance camera footage and images and videos of the minor victim were found on Bowling’s phone, which law enforcement searched pursuant to a federal search warrant. At sentencing, and not withstanding the evidence to the contrary, Bowling denied selling the minor’s images and videos.
After today’s sentencing, United States Attorney Vanessa R. Waldref stated, “Mr. Bowling’s criminal behavior is a stark reminder to parents and communities everywhere to be vigilant in protecting our children.” U.S. Attorney Waldref continued, “I’m grateful for the task forces and seamless law enforcement partnerships in the Eastern District of Washington. These partnerships are absolutely necessary to protect the most vulnerable among us and keep our communities safe and strong.”
“This significant sentence should serve as a warning to those who would harm the children of our communities.” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI and our partners are dedicated to the protection of those who cannot protect themselves and will ensure those that perpetrate these heinous acts are brought to justice.”
This case was pursued as part of Project Safe Childhood and investigated by the Missing and Exploited Children Task Force (MECTF).
Project Safe Childhood is a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The MECTF is dedicated to protecting the children of Washington State by assisting and investigating missing child and exploitation cases. Washington State Patrol (WSP) MECTF partnered with Homeland Security Investigations (HSI) in Spokane on a Task Force housed at the HSI Spokane office. The Task Force includes Special Agents, Detectives, and Analysts from WSP, HSI, Spokane PD, and representatives from outlying Counties dedicated to serving the children and communities of the region. The MECTF traces its origins to 1999, when the Washington Legislature established a task force on missing and exploited children under the direction of the Chief of the state patrol, RCW 13.60.110.
This case was investigated by Homeland Security Investigations with assistance from U.S. Probation. This case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
2:22-CR-080-TOR
South Bay Man Charged with Fraud in Alleged Scheme to Use His Position with Technology Company to Divert Software License PaymentsRead the Press Release
SAN JOSE – Kevin Chao, a former executive at a technology company with offices in San Jose, Calif., appeared on charges he engaged in a years-long scheme to defraud his employer by directing millions of dollars of business to entities he controlled and by diverting more than $2 million in software license fees to benefit himself and co-conspirators, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation, Special Agent in Charge Robert K. Tripp. Richard Sze and Suryanarayana Murthy Bobba, both former employees of the same technology company as Chao, face related charges. Chao made his initial appearance before the Honorable Nathanael M. Cousins, United States Magistrate Judge.
Chao, 64, of Mountain View, was charged in an Information filed July 19, 2023. Chao was a former Global Business Director at a technology company identified in the Information as Company-1. According to the Information, Chao had a duty of loyalty to, and a duty to disclose outside business to, Company-1. Instead, the Information alleges, Chao engaged in a scheme in which he directed millions of dollars in business to entities in which he had an interest but kept his control and financial interest secret from Company-1.
There were various aspects of the alleged scheme. First, the Information alleges Chao defrauded his employer by working with other company employees, Sze, 56, of Saratoga, Calif. and Bobba, 55, of Los Altos, Calif., to direct software development service contracts to Zillsoft, a company they controlled. Chao, Sze, and Bobba did not inform Company-1 that they controlled Zillsoft. Chao allegedly directed millions of dollars in business to Zillsoft, then split the profits with Sze and Bobba. The Information further alleges Chao continued the scheme by arranging for the sale of Zillsoft to a third entity that also performed work for Company-1, and the co-conspirators again secretly profited from Company-1’s business with that entity.
According to the Information, Chao and Sze formed another entity, SPSoft China, also to steer contracts and payments to themselves. Chao profited about $5.4 million from this arrangement. He concealed his control and interest in the company from Company-1 to continue to direct millions of dollars in business to the entity, according to the allegations.
In another aspect of the scheme, Chao and Bobba arranged for Company-1 to obtain a license to a software program for Company-1, and then secretly arranged to divert more than $2 million to themselves without disclosing the diversion to Company-1.
Chao originally was arrested on October 29, 2021, on a criminal complaint. Chao is charged with one count of wire fraud, in violation of 18 U.S.C. § 1343. After today’s appearance, Magistrate Judge Cousins released Chao on bond. Chao’s next appearance is scheduled for October 17, 2023, before Hon. Beth Labson Freeman, U.S. District Judge.
Sze was also previously arrested on a criminal complaint unsealed on October 29, 2021. Sze is now charged by an Information filed on April 24, 2023. Sze is charged with one count of conspiracy, in violation of 18 U.S.C. § 317, and he made his initial appearance on the Information on May 9, 2023. Sze was previously released pending further proceedings. Sze is set for a change of plea hearing before Judge Freeman on October 3, 2023.
Bobba was charged by an Information filed on April 24, 2023, with one count of conspiracy, in violation of 18 U.S.C. § 317. He made his initial appearance on the Information on May 16, 2023, and was released on bond. Bobba is set for a status conference before Judge Freeman on October 10, 2023.
The Informations and criminal complaints contain mere allegations that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Chao faces a maximum sentence of 20 years imprisonment, and defendants Bobba and Sze face a maximum sentence of 5 years imprisonment. Each defendant faces a fine of $250,000, plus restitution if appropriate, for each violation. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California and forfeiture is being handled by the Office’s Asset Forfeiture Unit. Assistant U.S. Attorneys Chris Kaltsas and Sailaja M. Paidipaty are prosecuting the case with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Savannah man sentenced to 30 years in prison after pleading guilty to producing child pornographyRead the Press Release
SAVANNAH, GA: A Chatham County man has been sentenced to decades in federal prison after pleading guilty to production of child pornography.
Perry Williams III, 24, of Savannah, was sentenced to 360 months in prison after previously pleading guilty to one count of Production of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Williams to pay restitution of $3,000, to register as a sex offender, and to serve 15 years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Protecting our most vulnerable citizens from harm and exploitation is of paramount importance – and that requires stopping predators and removing them from our neighborhoods,” said U.S. Attorney Steinberg. “This substantial prison sentence will help ensure our community’s safety.”
As described in court documents and testimony, Savannah Police officers were alerted in January 2022 when a woman discovered videos on Williams’ phone showing the sexual exploitation of a child. During a subsequent search of Williams’ residence, investigators found videos and other evidence that Williams had used his phone to record four videos in which he performed sexually explicit acts on a child.
“Protecting the children in our communities remains a top priority for Homeland Security Investigations,” said Acting Special Agent in charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This sentence is a testament that HSI remains committed to identifying and holding accountable individuals who prey on our most vulnerable population.”
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The case was investigated by the Savannah Police Department and Homeland Security Investigations, and prosecuted for the United States by Assistant U.S. Attorney Jennifer J. Kirkland.